The world’s leading tourism company, TUI, has reported a significant boost in its operating profits for the third quarter, bolstered by strong summer demand and the collapse of a German competitor.
From April to June, TUI's adjusted operating profit surged by 37% year-on-year to €232 million, marking the “eighth consecutive quarter of double-digit growth,” according to Sebastian Ebel, the group's CEO.
Bookings for this summer are up by 6%, with average prices climbing 3% compared to the Summer 2023.
The increase in bookings has been particularly noticeable in the UK market, up by 5%, and Germany, where bookings rose by 10%, given a boost by the bankruptcy of German rival, FTI, announced in June.
Altogether, TUI, which offers a range of travel, hotels, charter flights and cruises worldwide, sold 88% of its capacity this summer.
Between April and June, the Hanover-based company welcomed 5.8 million customers, generating a ‘record’ revenue of €5.8 billion, a 9% increase on the previous year.
Reservations for Winter 2024/25 are still in their early stages, but the season’s start is promising, according to TUI.
The tour operator also benefitted from the robust recovery since 2022 of global tourism, which has now returned to, or even exceeded, pre-pandemic levels.
Given the solid booking levels, TUI has confirmed its forecasts for the current fiscal year, with at least a 10% rise in revenue and a 25% increase in adjusted operating profit year-on-year.
