Tui bullish despite Egypt hit as average selling price continues to rise
James ChappleTui is hopeful of a strong 2023/24 winter season, characterised by higher average selling price (ASP) and positive forward bookings from its UK market, with summer 2024 performing well too – albeit with sales "still at a very early stage".
The airline and operator, which on Wednesday (6 December) revealed full-year underlying group earnings before tax of nearly €1 billion (€977 million), up from €409 million a year earlier, said the "positive booking momentum" for winter 2023/24 it highlighted in September was continuing.
Tui has taken another 1.4 million winter bookings since its last financial statement on 19 September, growing its pipeline for the season – to date – to 2.9 million bookings, an increase of 11% compared with booking levels at the same stage last year.
It did, though, note "a temporary slight slowing of bookings" to Egypt in recent weeks, which it has attributed to the ongoing conflict in the Middle East between Israel and Hamas.
Tui is 56% sold for its expanded winter 2023/24 programme, with winter capacity "trending in line with booking levels". ASP for the winter is "well ahead" of winter 2022/23 too, up 5% year-on-year, which includes growth of one percentage point compared with the levels reported in September.
This, it said, highlighted among customers "continued willingness to prioritise spend on travel and experiences".
The UK remains Tui’s most booked market for winter 2023/24, with 57% of the season sold so far. This is 9% ahead of winter 2022/23 and a further percentage point ahead of trading as of its 19 September update.
Short-haul demand "continues to drive bookings", said Tui, led by the Canaries, Egypt and Cape Verde. Frontrunning long-haul destinations include Mexico, Thailand and the Dominican Republic.
Tui’s summer 2024 programme, meanwhile, is 14% sold – significantly ahead (+13%) of how it was sold for summer 2023 at the same stage, with ASP running 4% higher. "Initial indications are for a strong season with bookings in all markets starting promisingly," said Tui.
Tui’s UK market, specifically, is 24% booked for summer 2024, around 6% ahead of sales at the same stage last year.
Tui full-year results 2023
Tui revealed underlying earnings before tax and interest of nearly €1 billion on 6 December off the back of €20.7 billion revenue – the first time the group has broken the €20 billion revenue milestone. Here are they key takeaways from Tui's 2022/23 full-year results announcement.
- Tui chief reiterates support for third-party retailers
- Tui bullish as average selling price continue to rise
- Holiday price hikes will slow next summer, Tui predicts
- Profit and efficiency focus for Tui in 2024
- Thomson and Tui veteran David Burling to step down after 34 years
- Tui floats plan to quit London Stock Exchange
James Chapple
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