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Travel News & Advice Summer holiday prices up 14% in 2021, says Tui Travel giant lost more than £7m per day because of coronavirus pandemic
Simon Calder Travel Correspondent
Thursday 10 December 2020 08:50 GMT
Taking off:Tui says the prospects are bright – and its fleet of Boeing 737 Max jets will soon be flying again (Simon Calder) Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
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Your support makes all the difference. Read more Europe’s biggest tour operator, Tui , says prices for 2021 holidays are one-seventh higher than in the last “normal” year, 2019.
The Anglo-German tour operator says that demand for travel is so strong that half its holidays for May have already been snapped up.
Looking back over 2020, the firm said: “There was no Easter business, no travel at Whitsun and only very limited summer business.”
From a profit of €894m (£803m) in the previous financial year, Tui lost €3bn (£2.7bn) in 2019-20, representing a loss of over £7m per day.
But bookings for summer 2021 are running 3 per cent above the same time last year.
The chief executive, Fritz Joussen, said: “Tui is ready for a speedy and successful resumption of travel activities as soon as the lockdowns are lifted and destinations reopen.
“The prospect of vaccinations from the beginning of the year will significantly increase demand for summer holidays in 2021. We are prepared for a new start after the crisis.”
The giant firm predicts that while 2021 “will be a transition year for tourism,” by 2022 business is expected to return to pre-coronavirus levels.
"The holiday sector will recover faster than the [travel] sector as a whole,” Tui says – reflecting the belief that business travel will take years to build back to its 2019 levels.
“The unbroken high level of consumer interest in holidays promises a rapid recovery for the holiday sector if the corona situation eases. Tourism will remain a growth industry in the long term."
Tui is also upbeat about the prospects for cruising, saying it expects “a complete resumption of business as soon as vaccines become widely available”.
Mr Joussen said: “Tui was in perfect health before the crisis and we want to return to our former strength as quickly as possible.
“The market is intact, our business model is future-proof and customer demand is there. Holiday travel remains very relevant for people.
“Our business model with our own tour operators, the travel agencies, aircraft, hotels and ships under the Tui umbrella makes a resumption possible very quickly.
“All indicators point to a successful restart of the travel business as soon as the pandemic is over.”
'Significant differences still remain' in Brexit trade talks, Raab admits But the currently winter looks grim, with bookings 82 per cent lower than in the previous year. All Tui’s trips from the UK to Lapland have been cancelled .
Prices for holidays that are going ahead are four per cent higher than a year ago.
The company says it has reached an agreement with Boeing to compensate for the consequences of the 737 Max flight ban.
Tui’s fleet of the aircraft type involved in two fatal accidents has been grounded since March 2019. Passengers are flying on the Boeing 737 Max again, but only currently in Brazil.
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