Record quarter for cruises and resorts puts Tui on track for a strong year | City & Business | Finance

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Packaged holidays giant Tui is on track for a good year, after a “very successful” first half, according to chief executive Sebastian Ebel.

For the six months to the end of March, Tui’s revenues climbed 14.8 percent to Eur7.9billion (£6.8billion), while its seasonal net loss dropped 40 percent to £284.1million. Additionally, its net debt fell by £945.6million to £2.7billion.

During its first half, 2.8million went on holiday with Tui, an increase of 14 percent on last year. It said that its hotels and resorts and its cruises divisions produced record results, while its markets and airlines unit benefited from higher demand and prices.

Ebel said that the summer has started well, with bookings up more than five percent to 9million and prices rising four percent plus, and around 60 percent of its programme sold. Despite the conflicts in the Middle East, as well as the uncertain global economy, Ebell said that Tui is confident of hitting its full year targets of 10 percent plus revenue growth and a 25 percent increase in its profits.

He said that strong demand for package holidays, as well as its guests increasingly recommending it to their friends has given the group confidence.

“Travelling is very popular. We see trends that will further strengthen this in the future: experiences are becoming more important than possessions, and the middle classes are growing in many parts of the world. The first two quarters of the financial year were very successful in operational terms,” Ebel said. “We are aware of the ongoing challenges in the geopolitical environment and confirm our expectations for the full year.”

The results are Tui’s last as a London Stock Exchange listed company before it leaves after 42 years. From the end of June, it will have just a single listing on the Frankfurt exchange.

They were better than expected and eToro analyst Adam Vettese said: “This is an encouraging sign going into the peak summer season where TUI tends to do most of its business.

“Despite some lingering economic uncertainty, it does not seem demand will be lacking, inflation pressures have begun to ease as consumers have more disposable income for travel.“

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