Booked revenue in the UK is 7% down so far this summer and 9% down for the coming winter compared with the same period last year, although both have picked up over the past month according to a trading update issued on Tuesday (22 September).

Across the group, booked revenue is currently 5% down year-on-year for the summer, which Tui said was in line with its "reduced own-risk capacity", and 7% down for the winter, albeit at an earlier stage.

The UK, though, has recorded a one percent point (ppt) improvement in booked revenue for the summer since 12 August.

And looking ahead to winter, Tui revealed an improvement in booking momentum over the past four weeks has seen booked revenue during this period recover to within 1% of the comparable period last year.

Tui has pinned the lag on "a continuation of the later booking trend against the backdrop of ongoing geopolitical and economic uncertainty", but said trading in its holiday experiences segment "continues its positive trajectory".

It has revised its full-year guidance on the basis of "the recent improvement in booking momentum", tightening its earnings forecast for the full-year from a range of €1.1-€1.4 billion to a range of €1.2-€1.3 billion. It will post its full-year results for the year to 30 September on 9 December.

Tui is 98% hedged on jet fuel for the summer, 63% for the coming winter and 39% for summer 2027. Combined with its hedging on the Euro and the US dollar, the group is more than 90% covered for fuel and current exposure for the coming year.

"We have continued to see an improvement in booked revenue throughout the summer season, with booking momentum remaining encouraging across all markets as customers book closer to departure and the summer season draws to a close," said Tui.

"This was reflected in booked revenue over the last four weeks, which was up +2%, underlining the later booking pattern, the resilience of demand for holiday travel and the strength of our product proposition.

"As a result, the overall booked revenue position improved by a further +1%ppt since our trading update last month to -5% and is now in line with our reduced own-risk capacity for summer 2026."

Other factors contributing to Tui's performance include prioritising use of its own capacity, and growing dynamically packaged products and app sales, as well as average selling prices "continuing to hold up well despite a competitive market environment".

While stressing demand is still "largely focused on the summer season", Tui paints a similar picture for the winter. "Early indications... point to a continuation of the later booking environment," it said, again citing ongoing geopolitical challenges and economic uncertainty.

"As in the summer season, average selling prices continue to hold up well, reflecting the strength of our product proposition despite the uncertain market," it added.

Tui has identified the Canaries, Egypt, Cape Verde and the Caribbean as "key destinations" for the upcoming winter half-year period to the end of March 2027.