TUI Travel posts yearly profit growth
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TUI Travel PLC has posted an increase in operating profits for the year up to 30 September 2012.
Strong performances in the UK, Nordics, Belgium and Canada helped boost operating profit to GBP490m, with profit before tax up GBP30m to GBP390m.
In the UK there was a 5% decrease in clients opting for a Thomson mainstream holiday (at 5.1m) although products such as Sensatori, SplashWorld and Couples accounted for 79% of holiday sales. Online bookings were up 5% to 44% in its financial year, with the UK & Ireland business collectively seeing a GBP48m boost in underlying operating profit to GBP197m.
Generally the northern region of Europe performed better than Germany, the Netherlands and France, while TUI now has its own branded aircraft in Russia to boost brand awareness and continues to look for growth in China and India.
Its UK capacity for winter 2012/13 is 49% booked with summer 2013 “very encouraging”. Its forward summer bookings in the UK are up 12% against a 3% increase in capacity, with 20% sold. Its differentiated and exclusive product now account for 83% its holidays sold to date for summer 2013.
“Whilst it is early in the booking cycle, we are significantly outperforming a flat market,” its annual report said.