TUI squeeze profits from travel market
All inclusive holidays have helped travel firm TUI to increase profits over the year ended September 30.
Online sales constituted 33% of mainstream sales, and record operating profits were experienced across all markets with the exception of France and Southern Europe.
In a trading statement, the firm said outlook for winter 2012/13 was very encouraging, and there had already been strong summer 2013 bookings in the UK, Nordics and Germany.
TUI’s performance is in stark contrast to rivals Thomas Cook, who last week posted losses of £590m, after struggling with debt.
Peter Long, Chief Executive of TUI Travel PLC, commented: “The year has been one of many successes. We have delivered record Group profits while the UK achieved outstanding results both in terms of profit and margin all against a backdrop of continued economic uncertainty. Our proven strategy continues to evolve and drive strong trading momentum throughout the Group. Overall, with the exception of France, trading for both Winter 2012/13 and Summer 2013 is very encouraging.
“We are today pleased to announce the next stage of our strategic development. This roadmap for growth, built on our detailed understanding of the market and robust business models, means that we are well placed to continue to deliver long-term sustainable growth, which in turn, will drive further value for both our shareholders and our customers.”