TUI Travel profits rise driven by all-inclusive package holidays
Tuesday 10 December 2013
Leisure giant TUI Travel, owner of the Thomson and First Choice holiday brands, posted record profits last year as more Brits opted for its all-inclusive package holidays.
“We are very mindful of the pressure that consumers are under under at the moment, especially when it comes to discretionary spending,” said chief executive Peter Long.
“But with a customer base of more than 20 million we can negotiate deals which mean we can offer great value. Particularly popular are all-inclusive deals where people know that they have nothing extra to spend once they get on the plane.”
Long also said the unusually warm summer in Britain had not hit TUI’s sales, with 94 per cent of Thomson customers now opting for “unique” holidays not sold by its rivals.
Around half of those are in its luxury resort villages like Sensatori and SplashWorld.
TUI’s pre-tax profits for the year to September jumped 21 per cent to £473 million on revenues up by 4 per cent at £15 billion. The dividend for the year goes up 15 per cent to 13.5p a share.
Bookings for this winter have been knocked by continuing political unrest in Egypt even though the main Red Sea resorts are unaffected.
Overall customer numbers are down 8 per cent and even excluding Egypt they are 4 per cent lower.
Early signs for summer 2014 are fairly good. TUI is holding capacity at 2103 levels but said it would have the flexibility to increase that if demand was stronger.
TUI was the first tour operator to take delivery of Boeing Dreamliners, pictured, for its fleet and now flies them to the Caribbean, Mexico, Florida and Thailand.
Long said: “We are really pleased.We have had no operational issues. Customer satisfaction is fantastic because they get off the plane with less jet-lag. And we are seeing 20 per cent savings on our fuel bills.”
TUI shares fell 4p to 380p on profit taking. Broker Panmure Gordon, which has a 475p target price, says the shares could be rerated given the company looks like making double-digit returns going forward.
- 1 Strictly Come Dancing 2014: Gregg Wallace joins line-up as final celebrities revealed
- 2 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 3 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 4 Oil tanker with $100 million cargo goes missing off Texas coast
- 5 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...