Tui dismisses impact of terrorism fears as holidaymakers seek sun in Spain

Summer bookings from British sunseekers were up 9 per cent year-on-year with Spain, the Balearic Island and the Canary Island witnessing the most significant growth

Zlata Rodionova@zlata07
Thursday 31 March 2016 17:02
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British tourists are returning to old favourites in Spain this summer
British tourists are returning to old favourites in Spain this summer

UK holidaymakers chasing the sun in Spain and the Canary Islands have helped Tui keep its numbers up despite terror attacks around the world.

Summer bookings from British sunseekers were up 9 per cent year-on-year with Spain, the Balearic Island and the Canary Island witnessing the most significant growth, according to the tour operator.

Revenue was up 8 per cent with the company now expecting a 10 per cent growth in profits this year.

There was also a surge in the UK for long-haul bookings, with strong demand for Mexico, Dominican Republic and Jamaica.

“With the launch of our new summer 2017 programme next month, we’ll continue to build on this solid performance, and to offer the best destinations and holiday experiences for our customers,” said Nick Longman, Managing Director, TUI UK & Ireland.

Tui, the world’s largest travel operator outshined Thomas Cook, its rival travel firm which has admitted last week that customers were delaying plans due to security concerns with summer bookings 5 per cent lower than last year.

Terrorist attacks in Brussels, Turkey, Paris, Tunisia and Egypt in the past few months have shaken the travel industry. Last month Tui said that demand for summer holidays in Turkey has plunged by 40 per cent in the wake of the terrorist attack on tourists in Istanbul in January.

TUI Group said holiday bookings for this summer were higher than last year as Europeans chose to holiday in Spain and further afield instead of destinations like Turkey, putting it on track to meet its annual target.

Wyn Ellis, Numis analyst said Tui move to sell more upmarket holidays, which are exclusive to its customers, means its booking profile was different to Thomas Cook.

“Tui has positioned itself particularly well with what it calls a differentiated product which has an earlier booking pattern,” he said.

Shares in TUI, which has a market capitalisation of £6 billion, gained 4.5 per cent to 1,075 pence at 0756 GMT after what Cenkos analyst Simon French called a “reassuring” update.

Additional reporting by Reuters

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