Travel group TUI has posted a jump in sales, with more travellers opting for tailor-made package holidays despite prices continuing to rise. The German business said people are prioritising their holidays “even in times of change and economic risks”.
It reported a 13% increase in group revenues to 4.9 billion euros (£4.1 billion) between October and December, compared with the same quarter the previous year. This was partly driven by a 6% year-on-year increase in the number of people travelling with TUI during the period, while it reported an 18% jump in people opting for dynamic package holidays.
These are tailor-made trips where consumers can choose from a wider range of flights when booking trips, with TUI last year introducing budget airline Ryanair to its platform. The group also offers multi-destination holidays where people can book the entire trip through the site.
TUI said bookings for winter and summer are up 2% compared with last year, with popular winter destinations including the Canary Islands and Egypt, and popular summer spots including Spain, Greece and Turkey. This is despite average prices being 4% higher than last year’s levels, the group said.
TUI chief executive Sebastian Ebel said: “People prioritise their holidays even in times of change and economic risks. Our hotel and cruise businesses are growing continuously and are highly profitable. To become less dependent on Europe, we are focusing on new growth markets in Southeast Europe, Asia and Latin America.”
The firm is still expecting to report an increase in revenues of between 5% and 10% over the next financial year, and underlying earnings to grow between 7% and 10% year on year.
Julie Palmer, a partner at advisory firm Begbies Traynor, said: “TUI’s ongoing success in the first quarter is further proof that the travel industry is largely immune from wider economic turbulence and weakened consumer confidence. It is encouraging to see that cash-conscious customers are still willing to shell out for TUI’s budget-friendly holidays, even as the operator nudges up prices.”