TUI, Europe's premier tour operator, has reaffirmed its annual guidance and mid-term objectives following a robust summer season, resulting in a notable increase in its share price. As of September 24, 2024, at 0735 GMT, TUI's shares climbed 2%, reaching their highest point in two months.
The company, which operates in 180 countries and serves over 27 million customers annually, anticipates a 25% rise in operating profit and a 10% growth in revenue for the current year. This positive outlook reflects the resurgence of package holidays, as travelers seek cost-effective solutions amidst escalating hotel and flight prices.
TUI's summer bookings experienced a 6% year-on-year increase, totaling 14.7 million, which represents 97% of the program sold. This success can be attributed to the company's extensive portfolio, including travel agencies, hotels, airlines, and cruise ships. With a fleet of over 150 aircraft and ownership of more than 400 hotels and 16 cruise ships, TUI is well-positioned to meet diverse travel demands.
The upcoming winter season also shows promise, with bookings up by 7%, reaching 1.8 million, or 33% of the entire program. This trend aligns with TUI's history of adapting to market changes, as evidenced by its evolution from Preussag AG in 1923 to its current status as the world's largest leisure, travel, and tourism company.
"The sun continues to shine on holidaymaker TUI"
Chiekrie added that markets anticipate further room for 30% annual profit growth. This optimism is supported by TUI's strong market position and diverse offerings, including partnerships with major theme park operators like Disney and Universal.
TUI's success is not limited to financial performance. The company has been recognized for its efforts in sustainable tourism, winning several awards. With a focus on reducing environmental impact, TUI operates its own travel technology platform, TUI Digital, to enhance efficiency and customer experience.
As TUI prepares to announce its full-year results on December 11, 2024, the company's resilience is evident. Despite facing challenges such as receiving €1.8 billion in state aid from the German government during the COVID-19 pandemic, TUI has maintained its position as an industry leader.
The company's global presence, including its expansion into emerging markets in Asia, coupled with its loyalty program, TUI Collection, demonstrates its commitment to growth and customer retention. As travel patterns continue to evolve, TUI's diverse portfolio and adaptability position it well for future success in the dynamic tourism industry.