TUI Group anticipates a profit increase to £1.22 billion for 2024, driven by strong bookings and strategic financial management.
TUI Group, a leading global travel and hospitality industry, is projecting a robust financial performance for the upcoming year. Following a strong finish to summer 2024, the company anticipates profits will increase by at least 25%, potentially reaching approximately £1.22 billion—an impressive recovery from last year’s €977 million.
A significant uptick in bookings buoys the optimistic forecast. TUI reported that summer 2024 bookings in the UK are 97% sold, reflecting a 5% increase over the previous year. This trend is echoed across all markets, with summer bookings up 6% year-on-year and average prices rising by 3%. Winter sales are equally promising, with bookings up 7% and prices ahead by 5%.
As of now, TUI has recorded 14.7 million summer bookings, with higher prices effectively countering the challenges posed by inflation. Spain, Greece, and Turkey remain the top destinations, indicating sustained consumer interest in traditional holiday hotspots. The upcoming financial results will be closely watched, as they are set to be announced on December 11, following the company’s fiscal year-end on September 30.
Additionally, TUI’s winter program is also performing well, with 1.8 million bookings made so far. The company notes that its winter offerings are currently 33% sold, a slight improvement from last year, with popular destinations including the Canary Islands, Egypt, and Cape Verde. This positive trajectory in winter bookings suggests a robust recovery trend, further cementing TUI’s market position.
The company is also expanding its cruise operations, having increased capacity by 12% with the introduction of a new ship for the German market. TUI now operates 17 ships, and despite a rise in available cruise days, occupancy rates have impressively reached 102%, with average rates up by 2%.
TUI Group is a publicly traded company on the Frankfurt Stock Exchange under the symbol TUI1. Its largest shareholder is TUI AG, which holds a significant stake. During the pandemic, the German government intervened to provide support through loans, thereby increasing its equity stake. TUI also attracts investments from major institutional firms, including BlackRock and Vanguard. The stock has seen increases during the tourism recovery, and forecasts for the upcoming period remain positive, drawing further interest from investors.
Looking ahead, TUI has strategically hedged over 90% of its euro, dollar, and fuel requirements until summer 2025, positioning itself to navigate potential market fluctuations effectively. This proactive approach to risk management enhances TUI’s resilience in an evolving travel landscape.
TUI Group’s strong bookings and strategic initiatives reflect a revitalized travel sector. With increasing demand and a promising outlook, TUI is well-poised to achieve significant profitability in the coming year, marking a pivotal moment in its recovery trajectory post-pandemic.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.