On Tuesday (10 February), Tui's chief financial officer Mathias Kiep noted how the temporary closure of Tui’s Riu and Royalton hotels in Jamaica following Hurricane Melissa in October disrupted peak-season trading and masked the "best first quarter" in the company's history.
But he added: "The vertical integration of our business model ensures attractive margins despite a challenging environment," adding that Tui had created a "solid foundation" for a successful financial year.
Chief executive Sebastian Ebel said the expansion into Romania, which officially launches on Thursday (12 February), represents a key step in diversifying away from traditional European source markets and accessing new customer segments.
The group reported an 11% decline in revenue year-on-year linked to the impacts of Hurricane Melissa, from €4.872 billion (around £4.2 billion) to €4.36 billion (around £3.79 billion).
However, total revenue for hotels and resorts increased marginally by 0.5% to €512.5 million (approximately £446 million), delivering an operational performance that exceeded the previous year’s record by €6 million (around £5.2 million).
Excluding the impact of Hurricane Melissa, performance indicators pointed to improvement. Available bed nights declined by 2%, occupancy rates increased by one percentage point and average daily rates rose by 5% compared with the previous year, demonstrating stronger underlying trading across the portfolio.
Cruise 'resilient and popular'
Cruise was a standout performer during the quarter. Underlying earnings before interest and taxes (ebit), including the equity result from Tui Cruises, increased by €34.1 million (£29.7 million) to a record Q1 result of €82.3 million (£71.6 million), compared with €48.2 million (approximately £42 million) in the same period last year.
Tui said the improvement was driven primarily by "notably higher occupancies" despite additional capacity coming into service, providing clear evidence of the "continued popularity and resilience" of its cruise product.
Meanwhile, its brand Marella Cruises recorded a 6.2% increase in revenue, supported by strong demand from the UK and German cruise markets and fleet expansion following the addition of Mein Schiff Relax to Tui’s winter programme.
Within markets and airline, Tui said the vast majority of the season has now been sold, "broadly in line" with normal booking patterns. Booked revenue is flat in the UK and down 1% in Germany, while summer 2026 bookings are currently 2% lower year-on-year, with Tui attributing the slower start to the recent cold spell.
Tours and activities arm Tui Musement, which recently partnered with Jet2.com and Jet2holidays, delivered revenue growth of 5.6% to €244 million (£212.4 million), up from €231.1 million (£201.2 million) a year earlier. This was driven primarily by higher volumes in its B2B business, particularly with cruise partners, alongside continued growth in tours.
As a result, underlying ebit improved by €2.8 million (£2.4 million) to €0.5 million (£435,342), compared with a loss of €2.3 million (approximately £2 million) in the prior-year quarter.
Top-selling experiences during the period included the Sal Island all-inclusive catamaran cruise in Cape Verde and the Coba and Chichen Itza Maya ruins tour from the Tui Collection excursions portfolio.
Customers' 'higher quality' bookings via agents
Looking ahead, Tui reiterated its full-year guidance, expecting revenue to increase by 2% to 4% and underlying ebit to rise by 7% to 10%.
Growth is expected to be driven by the addition of its ninth cruise ship Mein Schiff Flow in summer 2026, alongside further development of the group’s transfers business and continued expansion of Tui Musement, including the introduction of a new multi-day experiences category.
To bolster its hotel and resorts sector, Tui also plans to open two additional hotels in Zanzibar, taking its African portfolio to 105 properties, while a further 29 hotels are planned across Asia. These include the group’s first Robinson Club in China, scheduled to open in 2029, alongside brand debuts for TUI Blue in Japan and TUI Suneo in Vietnam.
"Travel agencies remain important partners: many customers book earlier and higher quality there," Ebel said. "That’s why this partnership is important for both sides."
