TUI observes shift in long-haul demand away from US

TUI Group has noted a significant decline in bookings to the United States, as travellers increasingly favour eastern destinations in the Middle East and Asia. This trend supports growth in areas like Egypt, where A&K Sanctuary plans a fifth riverboat launch in 2026, and rising luxury demand, as seen with Wendy Wu Tours enhancing five-star offerings.

The shift highlights evolving preferences in long-haul tourism, potentially influenced by geopolitical factors or new attractions in emerging markets with factors such as:

Tighter Border Controls: TUI CEO Sebastian Ebel cited increasingly restrictive and “non-seamless” US border rules as a primary deterrent for European travelers.
Currency Fluctuations: An appreciating Euro has made the US more expensive, prompting travelers to look for better value in other regions.
Rising Entry Costs: Increased fees and administrative hurdles associated with entering the US have contributed to the downward trend.

As demand for the US cools, TUI is seeing a notable surge in interest for:

Southeast Asia: Particularly Thailand, which is recording the highest growth among long-haul choices.
The Middle East: Strong growth in Egypt and the United Arab Emirates (UAE), driven by competitive pricing and a “normalization” of the market.
Other Long-Haul Alternatives: Increased bookings for Canada, the Caribbean, Cape Verde, and Mauritius.

Despite the US slowdown, TUI remains focused on its goal to grow its total long-haul passenger volume by 50pc over the next few years by “conquering” new markets in the East. Short-haul demand remains stable, with Turkey, Greece, and the Canary Islands continuing to lead summer and winter bookings.