Tui share price jumps as it satisfies UK holiday-maker's Mexican desires

Oliver Gill
Follow Oliver
Michael Frenzel, chairman of Europe's le
Fritz Joussen became sole chief executive of TUI Group in February 2016 (Source: Getty)

Travel company Tui's share price jumped over two and a half per cent in early trading after revealing that demand for long-haul breaks in destinations such as Mexico would bolster full year performance.

The German giant – known in the UK for its Thomson holidays and airline brands – upped its operating profit guidance and said earnings growth would be between 12 and 13 per cent compared to previous forecasts growth of 10 per cent.

UK long-haul bookings for this winter were up by over a quarter and Tui said that Briton's were baulking Donald Trump's reservations about Mexico as it was proving an increasingly popular holiday destination. The Dominican Republic, Cuba and Sri Lanka were similarly in demand.

Read more: Tui Group share price up four per cent as it remains upbeat despite losses

Post-Brexit vote: Tui AG Post-Brexit vote: Tui AG | mobile image

"We are currently seeing good growth in revenue of 11 percent in the upcoming winter season," said chief executive Fritz Joussen

Read more: Tui makes plans to bring brands under umbrella

Demand for cruises and tours also increased in the UK and was contributing positively to the bottom line and Joussen hailed the company's diversified offerings that had held the group in good stead of a tricky summer – the company share price has recovered from the decrease in the aftermath of the Brexit vote.

"The 2016 summer season, which was a particularly challenging time for tourism companies and airlines, proved that we have made the right strategic choices. Investments in new hotels and additional cruise ships have allowed us to strengthen our own products and brands over recent months," he said.