TUI Group posts operating growth
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TUI Group has posted a strong performance for its latest financial year with underlying EBITA up 20% to EUR746 million (GBP606m).
The group’s profit increased 20% to EUR142m with its turnover up 5% to EUR18.3bn. Higher average selling prices and its differentiated product had helped boost TUI Travel’s turnover by 4.8% to EUR17.7bn, with the UK market cited as a strong source market.
Its hotel and resort sector saw operating earnings up 23% following better prices and cost management of RIU.
For its cruise business, Hapag-Lloyd Kreuzfahrten posted a 2.3% drop in occupancy while TUI Cruises saw an increase. Operating earnings on its cruise business has dropped from EUR11m to EUR3m.
“Our business model has proven to be stable and sustainable despite a challenging economic framework in our key source markets in Europe. TUI is outperforming the market. Thanks to our product strategy and our efficient capacity control, we have delivered record operating results,” said Michael Frenzel, CEO of TUI.