p12-13 City Feb12 10/2/10 18:07 Page 12
City & finance
Keep up to date with the travel industry’s financial news and results at
ttglive.com
FLIGHT PROGRAMME.
‘We were slow to
tackle no-frills’
TUI has admitted it was not quick enough to
respond to the threat posed by no-frills airlines.
Chief financial officer Paul Bowtell said its
continued reliance on seven or 14-night dura-
tions when the no-frills carriers arrived meant it
occasionally “forced” customers into
DIY packages.
But he said that had now been solved through
the combination of Thomson and First Choice’s
airline fleets since the two companies merged.
“We’ve seen a tendency for people to look at
a slightly longer duration and we were not quick
enough to flex our flying programme,” he said.
“So in extreme examples we were forcing
people into the hands of the no-frills carriers and
putting their own holiday together, because they
might choose a hotel and decide they want to go
on Saturday and come back a week on Thursday
– and they could not fly with us.”
Bowtell said that bringing the First Choice and Tui: no more cuts,
Thomson flying programme together had
enabled Tui to offer greater frequency and
flexibility for its higher end products that earned
it bigger margins.
it’s time to expand
Chris Gray.
was now addressing, as well as expanding its
Tui results
TUI TRAVEL has said it will not make any more fly-cruise programme. This meant capacity had
capacity cuts, declaring “enough is enough”. now increased 3% year on year, he added.
Chief financial officer Paul Bowtell (pictured) Bowtell signalled there would be more expan-
TUI RESULTS FOR Q1 THREE MONTHS vowed to bring the era of cuts to an end as he sion at regional airports, particularly in
TO END OF DECEMBER spoke to analysts after Tui announced its Scotland, where he said Tui would “gladly” take
Q1 10 Q1 09 Change trading results for the three months to the end of the opportunities presented by the collapse of
Revenue £2.5bn £2.8bn -8% December. Flyglobespan in December.
Operating loss £107m £35m -£72 m He said it had been necessary to reduce The results for the quarter showed that Tui’s
capacity significantly in the UK after Tui and revenues in all its markets were down
TUI’S UK TRADING WINTER 2009-10 First Choice merged three years ago, but by 8% in the three months to the
(TO FEBRUARY 7, 2010): eventually the cutback started hitting end of December. That resulted
Overall: down 11% year on year routes and destinations that had made a in an underlying operating loss of
Average selling price: up 10% contribution to profits. £107m, compared with a loss of
Sales: down 2% “We have had for three years capac- £35m the year before.
Customer numbers: down 11% ity reductions in view of the consolida- In the UK, selling prices for sum-
tion in the industry. mer bookings were up 9%, as a result
TUI’S UK TRADING SUMMER 2010 “There comes a point where you say of “successful capacity management”,
(TO FEBRUARY 7, 2010): enough is enough and we have sales were up 10% and customer
Overall: up 1% now got to that point.” numbers up 1%.
Average selling price: up 9% He said Tui had For winter holidays, sell-
Sales: up 10% been “under repre- ing prices were up 10%,
Customer numbers: up 1% sented” in regional sales down 2% and cus-
airports, which it tomer numbers down 11%.
12 12.02.2010
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60