Travel enthusiasm and higher prices bring Tui record sales

Unleashing Post-Pandemic Wanderlust: TUI's Record Sales Soar

The irresistible allure of getting back on the move after the COVID-19 pandemic has catapulted the globe's leading travel giant, TUI, into the black for the last fiscal year. Between October 2022 and September 2023, shareholders rejoiced at a dividend of 306 million euros, marking a significant leap from the 277 million euros deficit incurred the previous year. As announced by TUI in Hanover, Germany, their revenues surged by a staggering 25% to a record-breaking 20.7 billion euros.

Elevated travel prices played a crucial role in TUI's impressive financial turnaround. Moreover, the company's adjusted operating profit, known as EBIT, skyrocketed from 409 million to 977 million euros. With the ambitious goal of escalating sales and adjusted operating profit by at least 10% and 25%, respectively, for the fiscal year ending in September 2024, CEO Sebastian Ebel is well-equipped to navigate the ever-evolving tourism landscape.

In the Spotlight:

• The resurgence of travel hunger following the COVID-19 pandemic has propelled TUI's record-breaking sales in Hanover, Lower Saxony, Germany.
• With increased travel costs and booming tourism, TUI's revenues soared to an unprecedented 20.7 billion euros during the past fiscal year.
• Ambitious financial targets stretch beyond the past year: TUI's CEO, Sebastian Ebel, aims for a 10% sales increase and a 25% bump in adjusted operating profit for the upcoming fiscal year.
• The media, including Stern based in Hanover, Lower Saxony, and other outlets, disseminated this significant news across Germany.
• Despite TUI's prosperity, the potential economic consequences arising from future COVID-19 waves pose a potential threat to future tourism and revenue in Germany and Lower Saxony.

Behind the Scenes:

As TUI tackles the new post-pandemic travel landscape, several trends and growth targets paint a clear picture of the company's strategic direction:

Trends:

1. Spiked Booking Trends:
2. With an uptick in vacation bookings for Winter 2024/25 and Summer 2025 totaling a 2% increase compared to the previous year, TUI demonstrates a strong demand for travel.
3. The Canary Islands, Egypt, and the Cape Verde Islands stand out as the most popular destinations elsewhere.
4. Package Holidays Take Off:
5. Dynamically packaged holidays, a TUI specialty, increased by 18% to 0.7 million guests in Q1 of 2025.
6. Customizable flight options added to these packages cater to diverse travel aspirations.
7. Revenue and EBIT Growth:
8. In the first quarter of 2025, the company's revenues surged by 13% to 4.9 billion euros, while underlying EBIT jumped to 51 million euros.
9. The Holiday Experiences segment (Hotels & Resorts, Cruises, and TUI Musement), has seen notable revenue growth and profitability.
10. Market Expansion:
11. TUI plans to focus on expanding its presence in Asia, Latin America, and Southeast Asia in order to reduce reliance on Europe.
12. Italy and Spain will see a significant uptick in flights and route investments, with Caribbean destinations as a top priority.

Goals:

1. Aggressive Revenue and EBIT Growth Targets:
2. TUI expects a revenue increase of 5-10% and a corresponding EBIT growth of 7-10% for the full year 2025.
3. By leveraging its integrated business model, TUI aims to unlock synergies between its Markets + Airline and Holiday Experiences segments.
4. Firm Strategic Positioning:
5. TUI has demonstrated success in aligning trends, strategy, and operational performance for ten consecutive quarters.
6. As it prioritizes holidays in challenging economic times, TUI intends to foster continuous growth in its hotel and cruise businesses.
7. Credit Rating Achievement:
8. TUI has secured a "BB" credit rating from Fitch Ratings, marking a return to pre-pandemic levels, with a stable outlook.