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Travel giant Tui hikes earnings outlook after strong summer

Published 28/09/2016

Holiday giant Tui said the UK was its best performing region over the summer season
Holiday giant Tui said the UK was its best performing region over the summer season

Thomson owner Tui signalled that British holidaymakers had shrugged off any worries over the Brexit vote and plunging pound as it reported strong demand for trips abroad.

The travel giant revealed the UK was its best performing region over the summer season, with revenues up 5%, while bookings from Britain have also surged by 22% so far for the winter as sun-seekers head to long-haul destinations such as Mexico and the Dominican Republic.

A weaker performance in the Nordics and Germany left overall revenues 1% higher for the summer, but Tui said bookings were 7% higher excluding Turkey, where an attempted military coup was thwarted in July.

Tui hiked its earnings outlook for the full year after the better-than-expected trading.

It said underlying earnings are now set to grow by 12% and 13% over the year to September 30 - up from August's prediction for growth of at least 10%.

Rival Thomas Cook also revealed robust demand from UK holidaymakers in its update on Tuesday, but its sales were hit hard in Germany and across Continental Europe, tumbling by 9%, in the wake of Turkey's woes and recent terrorist attacks.

Tui said long-haul bookings from the UK are up 26% so far for the winter as it switches its focus to far-flung destinations, having recently added planes flying to Cuba and Sri Lanka.

It said trips to the Canaries, Cyprus and Cape Verde were also in demand as holidaymakers continue to stay away from Turkey and Egypt.

Overall winter bookings are up 5%, with revenues up 11% so far.

Shares lifted around 2% after Tui's earnings upgrade.

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