Tui Group chief executive Sebastien Ebel on Wednesday (11 December) said that while inflationary pressures had eased, there was a portion of the market still looking for value.
At the same time, destinations – particularly parts of Spain – are reaching capacity and are therefore proving expensive.
Ebel said the four- and five-star customer segment was buoyant. “On the other hand, we see quite often new customers who have a £800-£1,000 budget per vacation – if they don’t see it in Spain, they look for alternatives."
Ebel continued: “What we see is more people going to Egypt in winter [instead of the Canaries]. In summer, there is high demand for Bulgaria, Tunisia and Egypt, so there are changes in demand patterns.
“Majorca will be full in summer, the Canaries are full in winter, but there is enough choice for customers to find the right vacation."
Ebel said the Canaries were full because they attract people from other destinations, and tourists from as far afield as the US. “So there is a shift, especially in the family segment, to cheaper destinations.”
His comments were echoed by Tui UK and Ireland managing director Neil Swanson, who said: “Looking ahead to 2025, we’re seeing growing interest in North African destinations.”
Ebel added Tui could still take advantage of demand for the Canaries because of its own hotel portfolio on the islands.
Meanwhile, Eben confirmed Tui has met with community representatives in Majorca to discuss the recent overtourism protests there, adding the operator took the issue “very seriously”.
Ebel said the fault did not lie with brands like Tui: “We are bringing customers that stay in a hotel, so they don’t take an apartment away.”
He added Tui was ready to build accommodation for its own staff for the same reason. “We are saying we are more part of the solution, less part of the problem.”
Ebel said consumers were still prioritising travel. “All the market surveys show a willingness to travel is high,” he said.
In the UK, Tui is 62% sold for winter 2024/25. Summer 2025 is 27% sold in the UK, the highest proportion of any Tui market, although bookings are down by 3% year-on-year.
