Tui lays bare huge hike in post-pandemic holiday prices

Looking ahead to its expanded 2023/24 winter season, bookings are up 15% compared with where they were at the same stage last year, with pricing up 4% year-on-year.

At 38% sold, the UK is "as usual" Tui’s most advanced market heading into winter, with bookings up 8% and average sales prices up 3% year-on-year.

As a result, Tui has restated its expectation that it will "significantly" increase its underlying pre-tax earnings during its fourth quarter and also for its 2023 full-year compared with 2022. Tui will issue its full-year results (year to 30 September 2023) on Wednesday 6 December.

“We are seeing a strong close to the summer season and we are on course to achieve results in line with expectations," said Tui Group chief executive Sebastian Ebel. "This is particularly evident in our main markets of Germany, where bookings year-on-year are 10% higher, and the UK, where bookings are in line with an already strong prior-year summer season and +4% ahead of pre-pandemic levels."

Ebel said had it not been for several external impacts on its business, most notably the wildfires in Rhodes which it anticipates costing the group €25 million, the airline and operator would have significantly outperformed its expectations.

"Tui is well positioned as we head into the new financial year. The positive trading momentum is continuing, and I am very optimistic for the coming winter and summer seasons. For winter 2023/24, we are still at an early booking stage, but the increase of 15% in bookings compared to the previous year is a very encouraging signal."