TUI Group raises guidance as financial year closes

TUI Group raises guidance as financial year closes Positive developments in TUI's tour operator business in the UK have boosted the company

TUI Group has raised its operating profit guidance for the full year results.

As the 2015/16 year draws to a close, ending on Friday, the group is confident of delivering between 12 and 13 per cent growth in EBITA following on from the previous guidance of least ten per cent.

RIU and the Cruises division, together with the very positive development of the tour operator business in the UK, have contributed to this “excellent result”, the group said earlier.

TUI has held on to its market lead despite the severe geo-political challenges in some of its eastern Mediterranean and North African markets, proving itself to have strong resilience in what has been a challenging year for the industry.

TUI emphasises its extensive international business operations, the diversity of its destinations and the continued progress in its transformation into an integrated tourism group focusing on hotel and cruise business. TUI operates in more than 100 destinations around the world.

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TUI Group chief executive Fritz Joussen said: “We’re driving growth and consistently pushing ahead with our transformation into an integrated tourism group focusing on our hotel and cruise business.

“The 2016 summer season, which was a particularly challenging time for tourism companies and airlines, proved that we have made the right strategic choices.

“Investments in new hotels and additional cruise ships have allowed us to strengthen our own products and brands over recent months.

“Reflecting on our positive outlook, we are also currently seeing good growth in revenue of 11 per cent in the upcoming winter season.

“Growth in bookings for our long haul destinations is driving this positive development.”

TUI opened five additional hotels this season and further additions are in the pipeline over the next few months – for example in Jamaica and Tenerife.
Growth in Cruises continued with the launch of Mein Schiff 5 in July 2016.

The modernisation of the Thomson Cruises fleet continued in summer 2016 with the launch of TUI Discovery, making the cruise portfolio even more attractive for the British market.

Expansion and modernisation in the luxury segment continues with an order for two new Hapag-Lloyd Cruises expedition vessels.

The TUI Group will publish its full-year results for 2015/16 on December 8th.