Tui group has issued an optimistic trading statement. Average selling prices in the majority of source markets is toward the higher end and are up one per cent. Online bookings have climbed 12 per cent over the past six months and summer bookings are up one per cent.
Why it's interesting
In January, following the merger of Tui Travel and German Tui AG last year, the new group was upbeat about its growth prospects, estimating 10-15 per cent growth in the first year. Today, the group reiterated this estimate.
In February, Tui Group performed in line with expectations 23.5 per cent jump in earnings before interest, tax, depreciation and amortisation in its first quarter, and a 5.4 per cent jump in revenues - in line with expectations.
The company's airlines may be slimmed down to compete with low-cost operations such as Ryanair. Up to 500 German jobs could be lost in the process.
What Tui said
Chief executives of Tui Group, Friedrich Joussen and Peter Long, commented:
Winter 2014/15 is closing out as expected, with our Mainstream programme almost fully sold and higher average selling prices in most source markets. We are pleased with Summer 2015 trading, with continued strong demand for our unique holidays and a significant increase in online bookings.
Hotels & Resorts are performing well and Cruise sales continue to grow, with the launch of Mein Schiff 4 this June and improved fleet performance by Hapag-Lloyd Kreuzfahrten. Accommodation Wholesaler is also delivering another year of double-digit TTV growth.
A rapidly growing and slimmed down Tui stands to benefit from the falling oil price, boosting its prospects of successfully competing in the vibrant low-cost airlines sector. In its trading outlook, Tui said it was on course to deliver results for the first half ahead of last year on a like-for-like basis.