Continued from page 64


from 28 million in 2019 – with the Bahamas almost wholly accounting for the increase by drawing more than nine million cruise passengers in 2024, up from 5.4 million in 2019. Most were from the US, of course, as were 42% of all overnight arrivals, with Europe accounting for 12% of arrivals. Major cruise operators are also


developing a growing number of private islands. A report commissioned by the Florida- Caribbean Cruise Association concluded cruise tourism generated $4.27 billion in direct spending in the Caribbean in 2023- 24, with the top-three earners the Bahamas raising $655 million, Cozumel $483 million and the US Virgin Islands $258 million. Spending on excursions and


food and drinks contributed $3 billion, or about $17 per passenger, and spending on port fees, services and other goods and services rose to $968 million or an average $29 million per destination, raising an additional $160 million in the Bahamas and $50 million in Jamaica. Whether these sums wholly compensate for the impact of 32.8 million cruise visitors a year is open to debate. Naturally, the larger islands


dominate the overnight visitor numbers. The Dominican Republic, most popular in Spanish- speaking markets, saw more than 8.5 million arrivals in 2024, while UK favourite Jamaica hosted 2.9 million and the 700 islands of the Bahamas drew 1.9 million. As well as Jamaica and the


Bahamas, other destinations with direct British Airways or Virgin Atlantic flights include Barbados (704,000), Saint Lucia (436,000), Antigua (331,000), Grenada (195,000) and St Kitts (21,000).


Tui hails record €225m profit for third quarter


Ian Taylor


Tui reported a “strong nine months and great third quarter” in results for the three months to June. Chief executive Sebastian Ebel


hailed a record €225 million profit for the quarter as demonstrating “transformation benefits and reduced seasonality, driven by record hotels and resorts and cruise results”. The results were stronger year


on year partly because Easter fell in April this year, and therefore in the quarter to June, instead of at the end of March, as last year. Ebel suggested the “accelerating


transformation” in Tui’s traditional tour operator business – its markets and airlines division – “will deliver growth”, adding that he would “talk in more detail” about this in the autumn. He noted “a very strong


improvement on the cruise side” with bookings for July to September


UK’s 1% bookings rise offset by 5% drop in Germany


The emphasis in Tui results presentations these days is rarely on its traditional tour operating business. Yet its markets and airlines


division still accounts for the lion’s share of revenue – €5.4 billion of the €6.2 billion in April to June and €12.6 billion of the €14.8 billion for the nine months to June. The profits from this almost all come in the peak summer quarter.


62 28 AUGUST 2025


growing significantly in dynamic packaging.” In fact, he suggested a wholesale


Sebastian Ebel


up 14% year on year, and occupancy rising 1%, despite Tui’s ships being “more than 100% full” by virtue of accommodating more children on board. Ebel said sold-out ships “gives


some room for price optimisation”. He also reported Tui’s hotels and


resorts occupancy up 3% year on year this summer, with the average daily room rate having risen 6%. Aside from Tui’s sales of its own product, Ebel reported: “We’re


Ebel noted: “Bookings are


slightly below last year, with UK bookings up 1% on 2024 but Germany 5% down.” But emphasising the increased


profitability, he insisted: “We focus on positive margins.” The key to understanding the


results, he said, was that: “We achieve a strong rate for our own differentiated products. We’re able to package Ryanair and easyJet flights, but with non-differentiated product it’s very competitive. With differentiated product ,you’re independent of that. “It’s our differentiated product


which makes Tui unique. If we steer a Tui customer into a Tui hotel,


we see an incremental benefit.” The process of transformation is


not over. He dismissed a suggestion that Tui intended to shut retail outlets, but said: “Transformation means higher productivity. There will be no programme of restructuring, but we will significantly increase productivity.”


travelweekly.co.uk


switch to dynamic packaging in Tui’s Western Region – France and the Benelux countries – would turn around the business and “make it profitable in the next months”. For April to June, the Western Region recorded a 2% fall in revenue on 2024 and an 18% rise in operating losses. By contrast, Tui’s Northern


Region – including the UK and Ireland – recorded a 7% rise in revenue to €2.34 billion and an operating profit of €43 million, while its Central Region – dominated by Germany and Europe’s German- speaking markets – saw a 10% rise in revenue to €2.23 billion and a €25 million operating profit. Tui revised its full-year guidance


in light of the results, forecasting operating profit growth of up to 11% for the year to September.


PICTURE: Tui


PICTURE: Shutterstock/Bradley Caslin


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  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72