Tui reports strong demand as travel approaches pre-Covid levels
The package holiday operator Tui Group has enjoyed strong Easter bookings to sunshine destinations including the Canary Islands and the Mediterranean, and expects a strong summer season as travel approaches pre-Covid levels.
Turkey, the Balearic islands, mainland Spain, Greece and Egypt which offer “guaranteed sun” at this time of year have also been in demand with UK and German travellers, said the German-based company. It is one of the world’s biggest tourism groups, and owns planes, hotels and cruise ships.
More than 500,000 people are heading on holiday with Tui over Easter, the company said, and its load factor (a measure of how full its planes are) is expected to be 95%, similar to pre-pandemic levels.
Sebastian Ebel, the chief executive, said: “Booking momentum remains encouraging, and the travel trends and strong demand for the Easter holidays are a healthy signal for the upcoming summer.
“Based on trends to date, we continue to anticipate capacity to be close to pre-pandemic levels. We expect a good summer 2023.”
Shares in Tui jumped 10% after the update, making it the top riser on the FTSE 250.
Despite the cost of living crisis, people are keen to travel, and the company has recorded a “significant increase in booking momentum” since the start of the year.
In the UK and Germany, bookings surged to record levels on several days, and in the four weeks to 5 February, bookings were around 10% higher than 2019 levels. The company has also increased its prices.
Tui cited studies showing that many people do not want to give up holidays despite economic uncertainty. However, customers continue to book at shorter notice and prefer package holidays and all-inclusive offers, which allows them to budget better.
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