TUI Travel sees demand rise
TUI Travel, Europe’s biggest tour operator, yesterday boasted of a welcome hike in summer 2009 holiday sales despite the dire conditions facing consumers.
The group said summer bookings have proved to be in-line with anticipated demand and also revealed it had fewer holidays left to sell than at this time last year.
Chief executive Peter Long said he was “encouraged” as the rising demand seen in February and March continued into April and May.
Long is likely to feel vindicated by the uptick, as he has often emphasised the comparative resilience of the travel industry in the recession.
But despite his cheery mood, the group continued to report losses for the six months to the end of March.
It said it made an operating loss of £289m in the period, which represented a 15 per cent fall compared to the previous half year.
This year’s late timing of Easter also hit sales, it said.
Holiday operators traditionally make a loss in the first half, which does not include profits from the all-important summer period.
Cazenove analysts said the strength of the recent bookings suggested cuts in the group’s capacity – the amount of holidays it offers – have worked.