Travel enthusiasm and higher prices bring Tui record sales

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

In the wake of COVID-19, people yearned to get moving again, and the travel giant TUI felt the impact, skyrocketing to financial success in their latest fiscal year. TUI's shareholders cheered for a delightful dividend of 306 million euros, marking a significant leap from the 277 million euros deficit in the previous year. The announcement in Hanover, Germany, revealed a jaw-dropping 25% surge in revenues to an astounding 20.7 billion euros.

With an insatiable appetite for exploration, TUI's revenues hit a record high. Elevated prices for travel and the thriving tourism sector propelled this significant financial turnaround. The company's adjusted operating profit, or EBIT, went through the roof, skyrocketing from 409 million to 977 million euros. Clearly, TUI is setting its sights on a 10% sales increase and a 25% bump in adjusted operating profit for the next fiscal year. Their fearless CEO, Sebastian Ebel, is well-equipped to navigate the ever-changing tourism landscape.

Attracting Attention:

• TUI's dramatic resurgence has sparked excitement in Germany, with media outlets like Stern sharing the news across the nation.
• While TUI reaps the benefits, the uncertainties of future COVID-19 waves leave the broader economy vulnerable.

Behind the Scenes:

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

Trends:

1. Winter Wanderlust:
2. The allure of Winter 2024/25 and Summer 2025 vacations has seen a 2% increase in bookings compared to the previous year, revealing a strong appetite for travel.
3. The Canary Islands, Egypt, and the Cape Verde Islands have kept their spots as the most coveted destinations for TUI customers.
4. Customizable Combinations:
5. Dynamic packages have grown by an impressive 18%, catering to diverse travel preferences with customizable flight options.
6. Revenue and EBIT Gains:
7. TUI's revenue reached an eye-popping 4.9 billion euros in the first quarter, jumping by 13%. EBIT surged to a noteworthy 51 million euros.
8. The Holiday Experiences segment, which includes Hotels & Resorts, Cruises, and TUI Musement, has posted remarkable growth and profitability.
9. Geographical Expansion:
10. In an effort to diversify, TUI is eyeing Asia, Latin America, and Southeast Asia as potential markets to reduce European reliance.
11. Italy, Spain, and Caribbean destinations will witness an upswing in flights and route investments.

Goals:

1. Revenue and EBIT Aspirations:
2. TUI anticipates a sales leap of 5-10% and an EBIT growth of 7-10% for the upcoming fiscal year.
3. The integrated business model aims to maximize synergies between the Markets + Airline segment and the Holiday Experiences segment.
4. Strategic Positioning:
5. TUI has managed to harmonize trends, strategy, and performance for ten consecutive quarters, distinguishing themselves as a reliable player in the tourism industry.
6. The company is committed to supporting holidays during challenging economic times, with plans to nurture growth in its hotel and cruise business.
7. Credit Rating Success:
8. TUI has secured a "BB" credit rating from Fitch, signaling a return to pre-pandemic levels with a stable outlook.