- Turnover up 8.2pc for 2016-17
- Earnings up 6.3pc during the period
- Group looking at 10pc earnings growth for full year
- Trading for summer 2017 is in line with expectations
Travel giant TUI expects summer trade to be in line with expectations as its cruise business and hotels business has helped offset lower demand to markets such as Turkey and Egypt. TUI trades as well-known operators Falcon Holidays and Thomson Holidays in Ireland.
TUI said that its Northern Region (Britain & Ireland, Nordic countries, Canada, Russia) delivered overall growth of 5pc in customer volumes. But it said the figures were hit by the timing of the Easter holidays this year, while the “result in the Nordics was also impacted by marketing costs for the TUI rebrand and lower demand for Turkey and Egypt”.
Revenue dropped more than 5pc to €2.2bn in the Northern Regions partly because the Easter holiday break was included in the six-month period to March 31 last year but not this year.
But TUI’s hotels and resorts division boosted sales to €300m, up around 12pc. That division includes RIU, Robinson, TUI Blue and TUI Magic Life and TUI also has a 49pc stake in Blue Diamond Hotels of the Canadian Sunwing Group.
Sales at TUI’s cruises business (TUI Cruises, Thomson Cruises and Hapag-Lloyd Cruises) hit €346m – up around 12pc.
Fritz Joussen, CEO, TUI Group, said: “Our transformation to an integrated tourism business is on track. We are delivering strong growth in our hotel and cruise brands. These two segments contribute half of our operating result on a full year basis.”