Coronavirus: Tui ponders cost-saving measures and hiring freezes

The holiday giant said it had experienced “weaker bookings” in the past week following confirmed cases of Covid-19 in northern Italy and Tenerife.

Other measures include reducing administrative budgets, postponing non-critical projects and reviewing capacity, if needed.

It has also pledged to continue pursuing its ongoing digital transformation.

Tui said while its 2020 financial year had started “exceptionally well” in terms of booking trends carrying over from January, the spread of the infection to various European holiday hotspots had resulted in a material impact on bookings – “especially for our remaining, near-term and lower volume winter season” said Tui.

“Due to the strong trading prior to last week, year-to-date bookings remain well above the prior year,” said Tui. “At this point in time, we only see a marginal effect on our operations, for example due to necessary rerouting of [cruise ship] Mein Schiff 6 in Asia.

“Given that the situation is still evolving, it is not yet possible to estimate the potential financial impact across our business of the current Covid-19 development. We are continuously monitoring the situation very closely and actively evaluating the implications for our business.”

Tui said health and safety of guests and employees remained its top priority.

It has set up task forces across all its markets and remains in close contact with relevant authorities and government ministries.