Tui sees strong summer season on ‘pent-up’ demand

Holiday group Tui has cut winter losses and predicted a strong summer season thanks to pent-up demand as travel restrictions ease.

The group reported underlying losses of 273.6 million euro (£230.5 million) for its first quarter to the end of December, narrowed from losses of 675.8 million euro (£569 million) a year ago.

It saw revenues rise five-fold to 2.37 billion euro (£2 billion) from 468 million euro (£394 million) a year ago, helped by surging prices – up 22% for summer trips and 15% higher for winter holidays.

Tui put the surge in prices for holidays down to travellers looking for higher quality and have bigger budgets for their summer trips.

The firm said the Omicron variant was a “short-term dampener” at the end of November and December, with holidaymakers still looking to book very last minute amid fear of restrictions and disruption.

But the group said: “Confidence in progress in ending the pandemic is increasing and holiday bookings are picking up significantly.”

Fritz Joussen, chief executive of Tui, said the firm is expecting a “strong summer 2022” for bookings, which are set to be close to levels seen before the pandemic struck.

He added: “There is pent-up demand among customers. We see this in all European source markets.

“Every step towards normality gives people confidence, and the demand for holidays increases immediately.”

The UK is “leading the way” for bookings, alongside Denmark, according to Tui.

The move to ditch travel restrictions for vaccinated travellers in the UK has helped boost demand in what is the firm’s second-largest market, with summer holiday bookings up 19% compared with two years earlier.