The travel giant’s summer 2016 programme is 47% sold, which is broadly in line with last year. Revenue is up 3%, driven by 2% growth in bookings and 1% higher average selling prices.
Turkey, however, continues to struggle. Demand for the destination was described as “subdued” and capacity has been moved to the likes of mainland Spain, the Balearics and the Canaries.
Tui said it was “pleased” with how summer 2016 trading had developed since its last update and remains confident that it will be able to achieve underlying earnings before interest, taxes, and amortisation growth of at least 10% in its current financial year.
Chief executive Friedrich Joussen said: “The group has again demonstrated the flexibility of its business model and the ability to remix destination capacities to match demand and as a result demand and pricing has remained resilient overall despite the impact of geopolitical events.
“Our integrated model with our differentiated range of own accommodation content, combined with strong supplier relationships continue to give us a strong competitive position and sustainable earnings growth.”
Tui’s winter 2015-16 programme is 95% sold with bookings flat but total revenue and average selling prices (ASPs) both up 3%.
The UK market has performed well for Tui. This winter bookings are up 2% with ASPs up 1%. Summer ‘16 is shaping up even better with revenue up 8% and bookings up 9%.
Tui’s positive update contrasts sharply with Thomas Cook’s more downbeat assessment.
When Cook released its own trading update just over a week ago it admitted that bookings for the coming summer were 5% lower than last year.
“The uncertain geopolitical environment is causing some customers to postpone booking their holidays, leading to a later booking pattern,” Cook said.
