European travel company Tui is expecting its annual profits to increase by at least 25%, thanks to higher spending on winter breaks to sunny destinations like Egypt, Cape Verde, Thailand, and Mexico. Summer sales have also risen by 6%, with Spain, Greece, and Turkey being popular destinations. Tui has seen a further 1.4 million bookings since its August update, totaling 14.7 million for the summer season.
Prices have been increased by 3% for summer and 5% for winter to offset rising costs. Germany saw a 10% increase in bookings following the insolvency of FTI Group. The winter season has started promisingly, with a 7% increase in bookings. Demand for more expensive holidays, including dynamic packages, has also gone up.
In the UK, bookings are on par with the previous winter season, with 40% of holidays already sold. Tui expects underlying earnings before interest and tax to grow by at least 25% compared to last year. The company’s cruise business, including brands like Mein Schiff and Hapag-Lloyd, has seen occupancy levels affected by conflicts in the Middle East.
Tui recently delisted from the London stock market and is now solely listed on the Frankfurt stock exchange. The decision was approved by investors in February to enhance liquidity and simplify the company’s structure. Tui’s shares rose by 1.4% in Frankfurt following the announcement.
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