TUI benefits from Thomas Cook troubles
EUROPE’s biggest travel group TUI Travel said its bookings have outperformed the UK market as it reaped the benefits from strong online sales and troubles at its rival Thomas Cook.
The tour operator, which also owns Thomson and First Choice, said yesterday total UK summer bookings were flat in the quarter, compared to a 14 per cent drop across the industry.
Chief executive Peter Long said the operator had seen a boost in bookings last month due to a fall in consumer confidence at rival Thomas Cook, which required emergency funding from banks in November following a string of profit warnings.
“I think we are clearly a beneficiary of the uncertain environment that our competitor is operating in. We have always said that was likely,” Long said.
While Thomas Cook sought to reassure customers that it was still safe to book, TUI placed full-page advertisements in the press stressing it was “in really great shape”.
Total revenues for the group were up five per cent to £2.845bn in the three months to December compared with the period last year.
But TUI said it had racked up a further £23m in operating losses taking the total in the quarter to £109m, as political unrest in the Middle East last year had continued to drive tourists away from North Africa destinations.
TUI’s investors mounted a protest against director pay during yesterday’s AGM, with 21 per cent voting against the remuneration package.