Strong demand from British holidaymakers has helped Thomson-owner Tui Travel overcome tough competition in Germany and elsewhere.
In its first results since the UK firm merged with its German sister company, Tui Travel said UK sales of winter holidays were up 6% and customer numbers rose 3% in December and January.
Bookings in the UK for summer are up 4%, and 38% of holidays are sold so far – the biggest takeup in Tui’s main markets.
For short-haul breaks, all-inclusive deals in the Balearics, Greece and Cyprus were the most popular with British customers; Mexico, Jamaica and Florida were the top long-haul destinations.
But business was more difficult in Germany and other countries. For winter holidays, German customer numbers were up 1% but profit margins were hit by competition in the Canary Islands. Nordic customer numbers fell 7%.
The joint chief executive, Friedrich Joussen, said business was “very strong in the UK and a little bit tougher in the Nordics, but better than last year. There was also tough trading in Germany through price pressures … and margin pressure in the Canaries.”
The company gave little indication about why UK sales were strong, though falling energy costs and the strength of sterling against the euro may have encouraged holidaymakers to book a foreign holiday.
The company said it was confident about achieving profit growth of 10-15% this year.
In the first quarter, which ended on 31 December, revenues rose 5.4% to €3.54bn and the operating loss excluding currency swings narrowed to €108m from €141m. Travel companies traditionally post a loss in winter before results improve during the summer season.
The company said performance improved because of a significant increase in profitability at its hotels and resorts division.
