TUI reports recovery in consumer demand
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TUI Travel has reported a “significant recovery” in consumer demand for leisure holidays, which it claims has resulted in “strong trading across all open seasons”.
In the firm’s pre-close trading update released today, ahead of reporting its Interim results for the six months ending 31 March 2010, TUI Travel PLC said winter 2009/10 programmes were almost fully sold and planned load factors on its aircraft had been achieved.
The firm also reported “strong pricing” in the lates market and said for summer 2010 there had been improvements in cumulative booking volumes in most source markets since the firm’s last update with the UK and Nordics up 13% and 23% respectively (up to 14 March).
TUI said it remained “well positioned” to meet the board’s expectations for the year ending 30
September 2010.
It reported that the UK business had continued to trade well in recent weeks and that since its last trading update, booking volumes in this market were up 13%, well ahead of capacity and stock left to sell.
“The UK load factor is now 43%, flat versus the prior year despite a small increase in capacity,” said a TUI statement.
“Average selling prices remain strong and are up 9% year-on-year.”
In Germany, TUI said booking volumes had improved by 3% in the last six weeks compared to cumulative bookings down 4% and capacity down 5%.
Load factors were now 45%, in line with last year.
It said trading in Austria and Switzerland remained in line with expectations while demand had
“strengthened significantly” in Poland over recent weeks, where booking volumes were now up 17% versus 1% down at our previous trading update.
In France, demand had been “well ahead of the prior year, when destination issues in
the French West Indies and the economic environment affected bookings”.
“Customer volumes are now up 19%, with favourable booking trends in both Nouvelles
Frontieres and Marmara,” said the statement.
TUI said The Specialist & Emerging Markets sector sold 15% more holidays in the last four
weeks compared with the prior year, leading to an improved cumulative booking volume position, which was now down 4%.
“There has been recent strength in US escorted tours and US student educational tours in particular,” said the statement.
“In the activity sector, cumulative sales to date are now up 9%, with sales in the last four weeks 24% ahead, driven by strong demand for Marine holidays.”
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