The group on Wednesday (6 December) reported full-year underlying Ebit (earnings before interest and tax) of €977 million, up 139% year-on-year, and revenue of €20.7 billion, up 25%, for the year to 30 September after taking more than 19 million customers on holiday. It is the first time Tui’s revenue has topped €20 billion.
It expects its Ebit to increase by at least 25% next year, and a further 10% growth in revenue with average selling prices continuing to rise. "2023 was a good year for Tui," said Ebel.
"In 2024, our strategic initiatives and measures will make a significant contribution to increasing value, we will win more customers with more products and expand our market share.
“Our guidance for the current financial year reflects our ambition and our confidence in the brand, our market position and the commitment of our employees.”
Tui’s northern region, which includes Tui UK and Ireland, recorded underlying Ebit of €71 million, up from a "significant" €102 million loss last year.
Tui registered strongest growth in its holiday experiences and hotel and resorts segments, which achieved Ebit of €822 million and €549 million respectively.
Meanwhile, cruise occupancy across its Tui Cruises, Marella Cruises and Hapag-Lloyd Cruises brands increased by between 72% and 96% year-on-year, while its markets (tour operating) and airlines sector returned to black for the first time since the pandemic over the past 12 months.
Looking to the medium-term, Tui said it had “a clear strategy” to achieve annual Ebit growth of between 7% and 10% by increasing customer lifetime value, as well as creating a business that was “more agile, more cost-efficient”.
Ebel said despite a market environment that "remains challenging", nodding most recently to the effect of the ongoing conflict between Israel and Hamas on bookings for Egypt, Tui had "significantly strengthened" its core business over the past year, creating "a good basis for further sustainable and profitable growth".
"Current winter bookings and the first indications for next summer lead us to expect a further improvement in 2024," he added. "We therefore expect underlying Ebit to grow by at least 25% and revenue to increase by at least 10%."
