TUI holidays: Holiday giant's record revenue amid 'high demand' for summer package holidays despite 4% price rise

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TUI has earned a record revenue amid a “high demand” for package holidays - despite average prices 4% higher for the summer season than last year

Holiday giant Tui has earned a record revenue as it said travelling remains “very popular” despite rising prices for trips abroad. Revenues jumped 15.2% to eight billion euro (£6.9 billion) in the first half. Its group loss stood at 330.5 million euro (£284.2 million), against losses of 558 million euro (£479.8 million) a year earlier.

Tui said it was seeing “high demand” for package holidays in particular despite its average prices around 4% higher for the summer season than a year ago. The group’s summer programme is 60% sold, with 9 million bookings for the upcoming peak season, up 5% year-on-year. In the UK, summer bookings so far are 3% higher, with 65% of the season sold.

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Sebastian Ebel, Tui Group chief executive: “Travelling is very popular with people. We see trends that will further strengthen this in the future: experiences are becoming more important than possessions, and the middle classes are growing in many parts of the world.”

TUI has earned a record revenue amid a “high demand” for package holidays - despite average prices 4% higher for the summer season than last year. (Photo: AFP via Getty Images)TUI has earned a record revenue amid a “high demand” for package holidays - despite average prices 4% higher for the summer season than last year. (Photo: AFP via Getty Images)
TUI has earned a record revenue amid a “high demand” for package holidays - despite average prices 4% higher for the summer season than last year. (Photo: AFP via Getty Images) | AFP via Getty Images

Tui added it was “aware of the ongoing challenges in the geopolitical environment” but is sticking to full-year guidance, with aims to increase revenue by at least 10% and underlying operating earnings by at least 25%. The firm said milder winter weather “motivated many last-minute travellers to make winter bookings” in its second quarter, despite prices 3% higher on average.

Tui also added that medium and short-haul destinations are driving bookings for the summer including Greece, Turkey and the Balearic Islands “once again proving to be the most popular destinations for summer holidays.”

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