Tui Group has pledged to “reinvent the holiday” this year, claiming it is ready for the resumption of operations.
In its half-year results update, Tui reported underlying Ebitda (earnings before interest, taxes, depreciation and amortization) for the first six months of the financial year as falling from €-78.5 million in H1 2019 to €-559.4 year-on-year.
In mid-March, before the end of the first six months of the 2020 financial year, the group suspended operational travel activities due to Covid-19 and the resulting worldwide travel bans. Up to this point, Tui Group says it was on track: in the first five months of the fiscal year, turnover increased by 6% to €6 billion. Excluding one-off effects operating underlying Ebit amounted to €-240 million – an improvement of 21% over the same period last year.
"We were very successful economically before the crisis and will be again after the end of the crisis,” said the group’s chief executive Fritz Joussen.
“We have a functioning and successful business model and over 21 million loyal customers who trust our strong brand.”
The group added that its bridging loan of €1.8 billion will cushion the unprecedented effects of the pandemic until normal business operations can be resumed. In April, the banks providing Tui’s existing credit line of €1.75 billion also gave their approval for the contractual integration of the new credit.
As of 10 May, the group had financial resources and available credit facilities of around €2.1 billion.
Meanwhile, Tui says it is “ready for an early resumption of travel activities in Germany and Europe”.
Tui’s first hotels on Sylt and in Mecklenburg-Western Pomerania in Germany will open their doors for guests in the coming days.
Tui’s hotels and clubs in European destinations are also ready to welcome holidaymakers, it said.
It comes after the group released a 10-point plan for increased hygiene and protection measures this week, which it says is being implemented in its hotels worldwide, “offering guests the greatest possible safety”.
Joussen continued: "The safety and well-being of our guests and employees around the world continue to be our top priority.
“Summer holidays in Europe can now gradually be made possible again - responsibly and with clear rules.
“Together with the destinations and our partners we have developed extensive measures to protect our guests.
“The demand for holidays is still very high. People want to travel.
“Our integrated business model allows us to start travel activities as soon as this is possible again.
“The season starts later, but could last longer.
“For 2020 we will also reinvent the holiday: New destinations, changed travel seasons, new local offerings, more digitalisation."
Tui said due to the ongoing pandemic and the continuing worldwide travel restrictions, the executive board will not provide a new guidance for fiscal year 2020.
Currently, 35% of the 2020 summer programme is still booked, with the first bookings for summer 2021 +114%.
2021 occupancy rates for Tui Cruises are at a normal level.