Sebastian Ebel, the chief executive of tour operator Tui, warned that consumer demand could become “tougher” this winter. The summer was good, especially in August; however, the next few months will be difficult for tour operators in Europe.
The market has been good this summer
TUI released its third quarter results for the three months to the end of June last week, Sebastian Ebel noted that long-haul bookings this summer remain down from 2019 levels, suggesting this was “most likely due to rising costs”.
It reported summer 2023 bookings up 6% year-on-year across the group and prices up 7% on average, with bookings at 95% of 2019 levels.
Several French TOs were disappointed by their sales in July, but August would have been excellent.
A tougher consumer environment
Sebastian Ebel said that “the consumer environment is getting tougher” and warned: “The market could experience some challenges. I guess we won’t see a tailwind in the European markets (this winter).”
Potential in certain markets
“In some markets, we still have significant potential to achieve better results. The dynamic packaging should lead to a significant improvement in results even if the consumer environment becomes more difficult”.
He highlighted Tui’s priorities of “increasing market share”, introducing new products and attracting new customers, with the dynamic packaging platform which will be extended to all markets, and said, “We have a clear strategy to capture future market growth. »
Dynamic packaging should make it possible to catch up with a few customers
It is clear that many travelers make their reservations directly, both for the air and for the hotel part. The ease of booking a low-cost flight has encouraged travelers to make their reservations on the websites of these companies. Some like Ryanair are formidable in terms of marketing. The Irish company carries out systematic reminders and promotions to travellers. We understand why this company does not want to see reservations made outside of its website.
The German group records its first profits after the Covid crisis
Tui returned to profit for the first time since the pandemic in the quarter ended June, posting a pre-tax profit of 47 million euros, a sharp turnaround from the group’s 602 million euro loss in same quarter of last year.
