Status: 05/11/2022 10:58
The world’s largest travel group, TUI, again expects significantly better business for the current year. Apparently customers are willing to pay and spend a fifth more on summer travel than before the Crown crisis.
The autumn and winter activity went well for the TUI tour group. In the first half of the 2021/22 financial year, i.e. from the beginning of October to the end of March, the company achieved sales of around 4.5 billion euros thanks to strong demand. That was more than six times that of the corresponding period last year, which was still heavily impacted by the restrictions caused by the corona pandemic, TUI announced today.
The operating loss adjusted for special effects fell by more than half to approximately € 604 million. The conclusion is that the group’s loss was halved to 708 million euros. Losses during the relatively low winter sales season are nothing unusual in the travel industry. However, these were particularly high on TUI during the pandemic, for example.
The TUI boss expects to be in black again
Thanks to the strong demand for holiday travel, TUI chief Fritz Joussen predicts that income before interest and taxes, the so-called EBIT, adjusted for special items, will be “significantly positive” in the current financial year to the end. of September. For the summer, Joussen expects nearly as many vacationers as in 2019, the last full year before the pandemic.
The decisive reason for the turnaround seems to be the willingness to travel and, in particular, the willingness to pay of customers. “In the past six weeks, overall bookings have been significantly higher than in the corresponding period of 2019”. Average prices for summer travel are 20% higher than before the Crown crisis.
“This reflects a greater share of vacation packages in the product mix, as well as increased demand for our summer vacation.” So it’s not just price increases that drive sales. On the contrary, customers are obviously also willing to book more complex and therefore more expensive travel packages. A tour package consists of at least two travel components such as flight, transfer or hotel, which are booked together.
The group wants to repay the state credit lines
With significantly better economic data, net debt also fell further. From the point of view of the board of directors, the foundations have been created to repay additional lines of credit from the state bank KfW from the Crown crisis and to reduce the state holding.
In the Crown crisis, the state had to protect the group with a total of 4.3 billion euros in financial aid. TUI currently does not need money from taxpayers and only little from banks, Joussen said.
TUI quarterly data
Bastian Brandau, NDR, 11.5.2022 14:13