Tui sees ‘steady’ demand in face of heatwaves and Middle East conflict

Holiday giant Tui has seen demand hold up despite searing heatwaves across Europe, a competitive market and conflict in the Middle East.

Europe’s biggest tour operator, which upgraded its full-year outlook last month, said it saw steady trading over the summer season, with another 1.4 million bookings since mid-August, taking the total to 14.1 million.

Bookings overall for the season are 2% lower than a year earlier amid wider market challenges and high temperatures in a number of markets, as well as an ongoing trend towards late bookings.

But it has been able to push through a 3% rise in average selling prices.

The German-based group said: “Demand has remained steady even as we navigate competitive market pressures, multiple summer heatwaves across our source markets, as well as the impact of the conflict in the Middle East.”

Winter trading has also got off to a strong start, with bookings 1% higher year-on-year so far at 1.8 million and prices remaining 3% higher.

Tui said figures showed “resilient demand for our leisure travel products against the background of broader market challenges”.

The group said it remained on track for the recently upgraded financial forecasts for total underlying earnings to grow by between 9% and 11% this year.

It previously forecast growth of between 7% and 10%.

Tui said destinations such as Turkey, Greece, the Balearics and the Canaries proved among the most popular short-haul destinations over the summer season, with Egypt seeing strong growth for cost-conscious travellers.

Over the winter, the Canaries, Egypt, mainland Spain and Cape Verde are emerging as the most popular choices, while long-haul destination Thailand is seeing the highest growth, it added.