TUI Travel profits rise driven by all-inclusive package holidays

 

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.

PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer with T-SQL, Watford, Hertfordshire - £350 - £360

£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...

Chief Financial Officer

120-150k: Accountancy Action: We are looking for an experienced CFO from a min...

IT Systems Business Analyst - Watford - £28k + bonus + benefits

£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...

Day In a Page

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?

A crime that reveals London's dark heart

How could three tourists have been battered within an inch of their lives by a burglar in a plush London hotel?
Meet 'Porridge' and 'Vampire': Chinese state TV is offering advice for citizens picking a Western moniker

Lost in translation: Western monikers

Chinese state TV is offering advice for citizens picking a Western moniker. Simon Usborne, who met a 'Porridge' and a 'Vampire' while in China, can see the problem
Handy hacks that make life easier: New book reveals how to rid your inbox of spam, protect your passwords and amplify your iPhone

Handy hacks that make life easier

New book reveals how to rid your email inbox of spam, protect your passwords and amplify your iPhone with a loo-roll
KidZania lets children try their hands at being a firefighter, doctor or factory worker for the day

KidZania: It's a small world

The new 'educational entertainment experience' in London's Shepherd's Bush will allow children to try out the jobs that are usually undertaken by adults, including firefighter, doctor or factory worker
Renée Zellweger's real crime has been to age in an industry that prizes women's youth over humanity

'Renée Zellweger's real crime was to age'

The actress's altered appearance raised eyebrows at Elle's Women in Hollywood awards on Monday
From Cinderella to The Jungle Book, Disney plans live-action remakes of animated classics

Disney plans live-action remakes of animated classics

From Cinderella to The Jungle Book, Patrick Grafton-Green wonders if they can ever recapture the old magic
Thousands of teenagers to visit battlefields of the First World War in new Government scheme

Pupils to visit First World War battlefields

A new Government scheme aims to bring the the horrors of the conflict to life over the next five years
The 10 best smartphone accessories

Make the most of your mobile: 10 best smartphone accessories

Try these add-ons for everything from secret charging to making sure you never lose your keys again
Mario Balotelli substituted at half-time against Real Madrid: Was this shirt swapping the real reason?

Liverpool v Real Madrid

Mario Balotelli substituted at half-time. Was shirt swapping the real reason?
West Indies tour of India: Hurricane set to sweep Windies into the shadows

Hurricane set to sweep Windies into the shadows

Decision to pull out of India tour leaves the WICB fighting for its existence with an off-field storm building
Indiana serial killer? Man arrested for murdering teenage prostitute confesses to six other murders - and police fear there could be many more

A new American serial killer?

Police fear man arrested for murder of teen prostitute could be responsible for killing spree dating back 20 years
Sweetie, the fake 10-year-old girl designed to catch online predators, claims her first scalp

Sting to trap paedophiles may not carry weight in UK courts

Computer image of ‘Sweetie’ represented entrapment, experts say
Fukushima nuclear crisis: Evacuees still stuck in cramped emergency housing three years on - and may never return home

Return to Fukushima – a land they will never call home again

Evacuees still stuck in cramped emergency housing three years on from nuclear disaster
Wildlife Photographer of the Year: Intimate image of resting lions claims top prize

Wildlife Photographer of the Year

Intimate image of resting lions claims top prize
Online petitions: Sign here to change the world

Want to change the world? Just sign here

The proliferation of online petitions allows us to register our protests at the touch of a button. But do they change anything?