Upbeat Tui tips UK to lead revival Ian Taylor


Tui delivered an upbeat summer forecast despite the latest restrictions as it reported 2.8 million bookings, more than half of them in the UK. Chief executive Fritz Joussen


declared “it’s amazing what the UK is doing with vaccines” as he forecast “a good summer season”, explaining the ratio of credit notes to new bookings was “about 50:50 four weeks ago, but now new bookings are higher”. Tui reported an operating loss of


€699 million for the three months to December, but Joussen insisted: “We’re very positive. We believe borders will open in the UK first, so


good we have over half our bookings in the UK. People are sitting on their suitcases waiting to see what will open.” He said: “We stick to 80%


capacity for summer ’21. We believe there is much still to come. For now it’s a matter of waiting. We have to be patient until maybe the end of March. Then it could be very different.” Joussen argued: “I don’t see any


reason why summer won’t happen. “Last summer there was pretty


significant business and this summer we have vaccinations and rapid tests. Saving ratios of households are high. People want to travel. As soon as a destination opens up it will be filled and that is how we will build our flight programme, with flexibility.”


Agents report most demand for autumn onwards


Juliet Dennis


Agents are focusing sales efforts on departures for September onwards as continuing consumer uncertainty hampers summer bookings. The trade this week reported


clients were holding off booking Easter and summer breaks until further clarity from the government on travel restrictions. The Advantage Travel Partnership


said 68% of bookings for 2021 made by its members last week were for September-December, while 45% of all bookings last week were for 2022. Leisure director Kelly Cookes


4 11 FEBRUARY 2021


said: “This shows consumers are hopeful by the autumn there will be some level of ‘normality’.” But she noted: “We’re seeing this date pushed back later every week.” Agents on a Travel Weekly webcast


said clients were happy to book for further in the future when they feel there is less chance of cancellations. David Walker, owner of The Travel


Snob, said he was “pleasantly surprised” with January and February sales, which were mainly for future dates, including cruises as far out as 2023. He said: “As long as clients can


see they’ve got the option to cancel, it’s a lot less of a risk. I don’t think


We stick to


80% capacity for summer ’21. I don’t see any reason why summer won’t happen


Tui reported bookings at 56% of


the level of 2019 in early February, but average selling prices up 20%. Joussen said: “We’ve not put up


prices. People are trading up to longer holidays and higher-value holidays. People are spending more.” By contrast, On the Beach


reported “very weak” demand, with bookings down 83% and spending


down 85% in the four months to the end of January. The OTA noted it had taken


holidays departing prior to May 1 off sale and warned: “We expect booking demand to remain weak until restrictions are lifted and vaccine deployment more widespread.” Jet2holidays extended its


suspension of flights and holidays up to and including April 14, from March 25, on Tuesday, but noted “huge pent-up demand” for summer 2021 when restrictions are eased. Lisa Fitzell, managing director of


luxury operator Elegant Resorts, said clients had “much more disposable cash” and that “pretty much everything booked is for later in the year”.


David Walker


Travel Weekly’s Lucy Huxley


Lee Harrison, Malvern World Travel


Sue Welsh


anyone thinks we’re going to be in this situation this time next year.” Homeworker Sue Welsh, of Ace


Travel 2, said bookings were “not as good as we all wanted” for peaks. She has also focused on 2022 and said: “It’s trying to be positive and say, ‘why don’t you book for next year?’.” Holiday balances are now due for


May departures but agents said many clients were choosing to postpone bookings, in some cases for a fifth time. Sam Smith Travel sales and


commercial manager Suzanne Cumpston said: “Some people still want to go and are holding on but most are amending to later this


year or 2022. While people are apprehensive about early summer, we remain positive about a surge in bookings for later this year and next year and continue to tell people to book now to guarantee their holiday.” RB Collection reported an


increase in clients wanting to rearrange summer bookings. Joint managing director Oliver Broad said: “Caribbean for winter is more popular than Europe this summer.” C The World director Carolyn Park


predicted a last-minute rush for this summer. She said: “Once the green


light goes on, it will be ‘book and go’.” i Agent Diary, page 17


travelweekly.co.uk


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