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Tui boss reveals strong UK figures and new stores
Ian Taylor
ian.taylor@travelweekly.co.uk
Tui chief Fritz Joussen promised “new retail openings” in the UK last week despite online distribution hitting 58%, as he reported ‘underlying’ operating profits of €1 billion.
Joussen dismissed concerns
about Brexit and the fall in sterling, reporting a “strong UK performance”. He said: “I don’t see a negative
impact. Early bookings indicate it will be a good summer despite
Brexit and movement in the pound.” Tui reported winter UK bookings
up 19% year on year to late November, with a 6% rise in average selling price, and summer 2017 bookings up 9% and revenue up 16%. Joussen said: “The bookings
curve for summer 2017 compares exactly with a year ago. If you didn’t know about the referendum, you wouldn’t spot it. “Demand is resilient. Do people
travel less? No.” He added: “We have 60% all-inclusive so we are in a good position.” Tui’s underlying €1.03 billion
operating profit for the 12 months to September was 12.5% up on last year, excluding the exchange rate impact, with turnover of €17.2 billion. The reported operating profit was lower at €898 million. Joussen explained: “A significant
part of our profits is sterling based, [so] we have a translation effect – the difference between 12.5% growth in constant currency and 4.5% without. But it’s only an effect if we repatriate the money, and we don’t. We invest it.”
UK customer numbers were 4%
up year on year and online bookings up four percentage points. Joussen said: “We are gaining
market share. Retail has become affordable when it comes to new openings. We will be opening retail [stores].” The UK delivered the strongest
performance of Tui’s major source markets; Germany and the Nordics were “adversely impacted by lower demand for Turkey” and Germany by “challenging market conditions”.
Fritz Joussen: ‘New openings have become affordable’
5 Good value is key for cruise buyers Natasha Salmon
natasha.salmon @
travelweekly.co.uk
The top reason for choosing an ocean cruise is value for money, according to new trade research.
Clia’s first Travel Agent Research
Panel Questionnaire found the value of a cruise was ranked first, ahead of itineraries and standards of services. More than 75% of respondents said customers spent more on ocean cruising in 2016. High standards of dining and
promotional offers were ranked fourth and fifth as key reasons in choosing an ocean cruise. Clia surveyed just under 100 agencies from the high street and online, as well as homeworkers. Almost 75% of agents said the industry had grown in the past year, the biggest increase being sales from couples, followed by families. The survey’s results were
released at Clia’s cruise forum in Windsor this week, where it also announced that Royal Caribbean’s vice-president of Europe, Middle East and Africa, Stuart Leven, will
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travelweekly.co.uk 15 December 2016
“People are conscious of not only a holiday’s price, but what they spend during the trip”
succeed Lynn Narraway, managing director of Holland America Line and Seabourn, as chairman of the association. Andy Harmer, director of Clia UK
and Ireland, said: “I don’t think it’s a surprise that customers are choosing cruise for value for money. “People are more conscious of
not only a holiday’s price, but what they spend during the trip. “More people want to go all-
inclusive. Cruise is the best value for money because so much is included.” Phil Evans, managing director of agency Cruise Nation, said: “Consumers take everything into account including spending and activities. This is why families are a massive, growing market segment.” The key factor in customers choosing a river cruise was destination, followed by standards of service and value for money.
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