Sebastian Ebel said sales of packages through agents would continue to play an important role amid a transition towards a more concerted focus on dynamic packaging and sales of individual elements.

Record performance across its cruise and hotels and resorts divisions, fuelled by "robust customer demand" which saw passenger numbers top 20 million, has driven up Tui’s earnings over the past year by a third to €1.3 billion.

Tui’s holiday experiences segment, comprising cruise, hotels and resorts and experiences platform Tui Musement, delivered underlying ebit (earnings before interest and tax) of €1.1 billion in the year to 30 September 2024 – up from €822 million a year earlier.

Earnings from cruise stood out following a nearly 60% increase from €236 million to €374 million, with occupancy across its Tui Cruises, Hapag-Lloyd and Marella Cruises brands running to 99% on average, up from 94% in 2022/23.

Tui said growth had been driven by investments in new-builds; Mein Schiff 7 became the latest addition to the group’s fleet in June, which now stands at 17. Available passenger cruise days increased by 2% to 9.7 million.

Hotels and resorts, meanwhile, delivered ebit of €668 million, up from €549 million in 2022/23, "surpassing its already strong operational performance of the prior year". Average daily rates increased by 7% year-on-year to €93.

Full-year revenue came in up 12% year-on-year at €23.2 billion following a nearly 7% increase in annual passengers numbers from 19 million to 20.3 million. Tui also reduced its net debt over the 12 months to the end of September by €500 million to €1.6 billion.

Guidance for the 2024/25 full-year includes a 5-10% increase in revenue, and a 7-10% increase in underlying ebit – a range which becomes a new medium-term target for Tui.

’Future-proofing’

"2024 was a very good year for us," said Tui chief executive Sebastian Ebel, who pinned Tui’s success on "rapid implementation" of measures to improve earnings, and the firm’s wholesale transformation strategy.

Ebel said "the Tui of tomorrow was well positioned" owing to efforts to "future-proof" its tour operator business, which chiefly involves reshaping Tui to be able to sell all elements dynamically in all markets, particularly through its app.

"The aim is to develop it into a tourism marketplace with a focus on package tours," said Ebel. "Tui customers will be able to choose from an even broader product portfolio in future." However, he stressed: "Of course, we will continue to focus on package holidays and our good cooperation with travel agencies."

In Tui’s northern region, which comprises Tui UK and Ireland, ebit more than doubled over the past year from €71 million to €165 million.

Ebal hailed Tui’s performance in new, non-traditional markets such as Latin America where it identifies growth opportunities. "This reduces our regional dependence on Europe at a time when the European economy is growing little or not at all," he said.

Tui is 62% sold for winter 2024/25, with average selling prices up by 5%; the group said this had been supported by an increased share of package holidays and dynamic packages in the sales mix.

Summer 2025 is currently 17% sold, which Tui said was "in line with last year". Bookings are up by 7% for summer 2025, and average selling prices +3%.