TUI tourism giant pins hopes on holiday rush despite lower demand for Turkey, N Africa

ISTANBUL

AFP photo

European travel and tourism giant TUI has reiterated its target of reaching at least 10 percent growth this year after seeing solid demand for winter and summer bookings, despite lower demand for Turkey and North Africa.

The group said it had seen strong demand for summer trips to Greece, the Canaries and holidays further afield. 
Unlike rival Thomas Cook, it did not see any recovery in the troubled Turkish market in its pre-close trading update, released on March 29. 

“Winter 2016/17 is closing out as expected, with a good performance by Hotels & Resorts, Cruise and growth in Source Market revenues, increasingly booked via our direct and online channels. Overall, Summer 2017 remains in line with our expectations, with almost half of the Source Markets’ program sold, further openings scheduled in our Group hotel brands, and cruise ship launches in both TUI Cruises and the U.K.,” said TUI Group CEO Friedrich Joussen.

The group said it expects a 10 percent increase in underlying earnings (EBITA) for fiscal year 2016/17.

Some 97 percent of its holiday program was sold during the winter season, said the company.

TUI noted that some 48 percent of its summer program had been sold, driven by strong demand for holidays in Greece, Spain’s Canary Islands and long haul destinations. Travelers, however, continued to avoid Turkey as a holiday destination amid worries about terror attacks.

Excluding Turkey, bookings are up 7 percent overall, with Germany up 8 percent and Nordics up 9 percent, it said.