TUI Faces Global Travel Storm but Keeps €1.4 Billion Profit Ambition Alive With Rising Bookings

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TUI Group’s travel bookings for the full-year 2026 are improving with a holiday booking boom and sustained tourism activity. It has held its forecast for underlying EBIT for the year 2026 in the range of €1.1 billion to €1.4 billion. According to the company’s recent financial update, the travel industry is still learning to cope with the impact of geopolitical tension and the economic slowdown and changing customer booking patterns.

The tourism group recorded underlying EBIT of €235 million during the third quarter of 2026, compared with €321 million in the same quarter of the previous year. The result reflected the impact of external disruptions, including a €20 million effect linked to geopolitical developments that affected cruise operations and travel activity.

Revenue for the quarter reached €5.9 billion, while revenue for the first nine months of the financial year totalled €14.5 billion. The company reported that market conditions remained challenging, but demand for holidays continued as travellers adjusted their booking patterns rather than abandoning travel plans.

The latest performance highlights the continued strength of leisure travel demand and the importance of diversified tourism businesses capable of responding to changing market conditions.

Global Travel Market Shows Signs of Recovery as Booking Trends Improve

Holiday demand continued recovering during the third quarter as consumer confidence gradually improved across major European travel markets.

The company served 9.9 million customers across its businesses during the period. Although customer numbers declined compared with the previous year, booking momentum improved during the later weeks of the quarter.

Travellers increasingly delayed purchasing decisions, creating a shift towards shorter booking periods. This trend reflected economic uncertainty, inflation pressure and concerns surrounding international developments.

Despite these challenges, demand remained strong for popular leisure destinations. Greece, Spain, the Balearic Islands and the Canary Islands continued attracting significant interest from European travellers.

Eastern Mediterranean destinations also recorded improving demand after facing weaker booking activity earlier in the season.

The recovery demonstrates that consumers continue placing high importance on holidays and experiences, even while becoming more selective about timing, destinations and spending decisions.

Accommodation Portfolio Supports Growth Through Expanding Hotel Operations

The Hotels & Resorts division remained an important driver of performance, generating underlying EBIT of €121 million during the third quarter.

The division increased available bed nights by 1% to 11.3 million, supported by additional capacity and new hotel openings. However, occupancy declined by five percentage points to 77%.

The company attributed the occupancy pressure to the introduction of new properties and softer demand in some destinations, including parts of the eastern Mediterranean, Mexico and the Caribbean.

Average daily rates remained stable at €88, indicating continued demand for quality accommodation and branded holiday experiences.

For the first nine months of the financial year, Hotels & Resorts achieved underlying EBIT of €356 million.

The company continues developing its accommodation portfolio through targeted investments, focusing on recognised hotel brands, customer experience improvements and long-term growth opportunities in key tourism markets.

Cruise Operations Maintain Strong Momentum With Premium Holiday Demand

The cruise division delivered a strong performance despite operational challenges during the quarter.

Underlying EBIT reached €133 million, compared with €143 million in the previous year. The decline was mainly connected to disruption affecting cruise activities in the Gulf region.

Temporary operational changes impacted some itineraries before services returned to normal. Excluding these effects, the cruise business achieved improved underlying performance compared with the previous year.

Average cruise rates increased by 4% to €252, compared with €243 previously. Available passenger days remained stable at around three million.

Cruise occupancy remained extremely strong, reaching 99% when excluding disruption-related impacts.

The company continues expanding its cruise operations through additional vessels and fleet development. Growing interest in experience-based holidays is supporting demand for cruise products that combine accommodation, entertainment and destination exploration.

Digital Experiences Business Expands Through Efficiency and Innovation

The destination experiences division delivered further improvement during the quarter, supported by digital development and operational efficiency.

Underlying EBIT increased to €23 million, representing growth compared with the previous year.

Although transfer volumes declined to 7.9 million due to weaker demand in some markets, experience sales remained stable at 2.9 million.

The performance reflects continued consumer interest in activities, excursions and personalised destination experiences.

During the first nine months of the financial year, the division recorded significant improvement in underlying EBIT performance.

The company continues investing in technology to improve customer access to experiences, streamline operations and create more personalised travel journeys.

Digital platforms are becoming increasingly important as travellers seek flexible options before and during their holidays.

Airline Segment Faces Pressure as Industry Competition Intensifies

The airline and tour operator division continued facing challenging market conditions during the third quarter.

The segment reported an underlying EBIT loss of €16 million compared with a profit during the same period last year.

The performance was affected by weaker demand in some markets, increased competition, higher fuel expenses and additional capacity across the aviation industry.

For the first nine months, the division recorded an underlying EBIT loss of approximately €474 million.

The company continues focusing on improving operational efficiency, strengthening commercial performance and adapting airline activities to changing market conditions.

Digital distribution is playing a growing role in customer engagement. Sales through the company’s mobile application increased by 20%, highlighting stronger adoption of online travel services.

The company is also developing new travel offerings designed to meet changing customer expectations, including demand for more flexible and value-focused options.

Technology and Business Transformation Drive Future Expansion

TUI continues advancing its transformation programme by investing in digital solutions, artificial intelligence applications and improved customer platforms.

The company is strengthening its integrated travel ecosystem by connecting airlines, hotels, cruises and destination services.

Future growth plans include expanding hotel capacity, increasing cruise availability and enhancing experience-based products.

Additional cruise capacity is expected to increase available passenger days by 12%, supporting future expansion in the premium holiday segment.

The company’s strategy focuses on creating a seamless travel experience where customers can access flights, accommodation and activities through connected platforms.

Technology investment remains a key priority as the global tourism industry becomes increasingly digital and customer expectations continue evolving.

TUI Maintains Financial Guidance as Tourism Industry Proves Resilient

TUI has confirmed its underlying EBIT forecast of €1.1 billion to €1.4 billion for the 2026 financial year at constant currency.

The company’s outlook assumes continued travel demand, stable fuel availability and no major escalation of geopolitical risks.

Revenue guidance remains suspended due to ongoing uncertainty in global markets. Previous financial year revenue reached €24.2 billion.

The latest results indicate that the tourism industry continues demonstrating resilience despite economic challenges and international disruption.

Travellers remain committed to leisure experiences, but their purchasing behaviour has changed, with more customers waiting closer to departure before confirming bookings.

With improving demand trends, stronger cruise performance, expanding accommodation capacity and accelerated digital transformation, TUI continues building a diversified travel platform designed for sustainable growth in the global tourism market.