TUI Earnings Stable as Demand Shifts
PHOTO: Antalya, Turkey. (Photo courtesy Thinkstock)
TUI, one of the world’s largest tour operators, is reporting that it will meet fiscal targets despite a drop in demand for holidays to North Africa and Turkey. The company, which is also popular with British holiday makers, also noted that Britons may see a bump in pricing due to the recent Brexit vote.
Bloomberg reports that TUI’s “revenue will climb about 2 percent in the year ending Sept. 30, TUI said in a presentation, down from an earlier prediction of at least 3 percent, as geopolitical turmoil hurts demand.”
While demand has shifted rather than fallen for the tour operator, there will be a price increase for Britons traveling with its popular Thompson and FirstChoice travel brands.
While TUI’s chief executive Friedrich Joussen told the Guardian, “we haven’t seen a change in booking patterns since the referendum;” Joussen noted that sterling had lost 9 percent of its value and that prices will increase.
TUI’s official earnings statement reflected the global drop in tourism to Turkey and North Africa and the attacks in Europe. According to the Guardian, the Hanover, Germany-based company reported underlying earnings before interest, tax and amortisation (EBITA) of €180 million for its third quarter, up 1.1 percent. Sales dropped 5.7 percent to €4.6 billion, as demand dropped following the attempted coup and terrorist attacks in Turkey and a spate of other attacks in Europe.
“When you have a lot of incidents, that affects the industry,” Joussen said. “It’s like a rollercoaster, up and down.”
Find more information on TUI’s earnings report here.
For more Tour Operator News
More by Janeen Christoff
Get Travel Deals and Travel News
Recent Travel Opinions
Airlines & Airports
Features & Advice
Destination & Tourism