Published on : Wednesday, December 13, 2017
TUI Group reported an operating result, before accounting for interest and tax, up 12 per cent to €1.121bn (£989m). Turnover rose at a similar rate to €18.5bn in the year that ended 30 September 2017.
Thomas Cook also reported that hotel prices in Spain have increased sharply following the devaluation of sterling after the EU referendum. Croatia and Bulgaria are now two preferred destination for the British holidaymakers.
There has been sharp rise in the cruise prices also where British passengers have to pay an extra £10 a night year-on-year. On Marella, the rebranded Thomson Cruises, the average rate per passenger per day is now £131.
The TUI Group, however, has managed to enjoy a very good year as investments in high-margin hotels and ships pay off. TUI has delivered a double digit growth in the operations for three consecutive years.
Mr Joussen said in the past five years, the company has moved from a traditional tour operator business model, with an airline and retail stores, to “an operator of hotel and cruise businesses”.
TUI is less seasonal in terms of other travel firms as it has a large airline and many travel shops, hotels and cruises which now deliver about 56% of its profits.