In the period under review, TUI Travel increased its turnover by 0.9 per cent to 18.0 billion euros (previous year 17.8 billion euros). The operating result rose by 10.5 per cent to 707.6 million euros (previous year 640.5 million euros). The very good result was driven by the business performance in the UK, Germany and the Netherlands. The strategy of focusing on the Mainstream business, the package travel segment from retail to tour operators to flight operations, has proven to be a pillar for sustainable, profitable growth. The operating result also benefited from the cost savings achieved in the framework of an efficiency programme.
Hotels & Resorts: RIU and Robinson drive growth
Hotels & Resorts managed to increase both turnover and operating result due to the very good performance of Riu and Robinson. In financial year 2013/14, total turnover by the Sector climbed by 4.2 per cent year-on-year to 861.3 million euros (previous year 826.6 million euros). The operating result of TUI Hotels & Resorts grew by 2.7 per cent to 202.5 million euros (previous year 197.2 million euros). Adjusted for the income from the sale of a RIU hotel generated last year, the operating result even rose by 11.1 per cent year-on-year. Despite an increase in capacity, the Riu brand increased the occupancy rates of its hotels and achieved higher average revenues per bed. The Riu Group also improved the return on invested capital (ROIC) from 12 per cent to 13 per cent, exceeding the capital cost target of 11 per cent. Robinson Clubs also delivered a strong operating performance, increasing average revenues per bed and improving their profitability. TUI’s premium clubs increased ROIC from 6 per cent to 10 per cent, further consolidating the basis for future expansion and internationalisation. Following the announcement of the expansion of Riu hotels in Mauritius in the summer, the Robinson Club portfolio will be further expanded in 2015 with the opening of the Robinson Club Djerba Bahiya in Tunisia.
Cruises – turnaround target outperformed /Break-even for Hapag-Lloyd Cruises in the fiscal year 2014/2015 confirmed
The Cruises Sector of TUI AG outperformed against the internal expectations in the period under review. The Sector with the two companies Hapag-Lloyd Kreuzfahrten and TUI Cruises posted an operating result of +9.7 million euros, almost 24 million euros up on the prior year (-13.9 million euros). TUI Cruises, the joint venture with Royal Caribbean Cruises, showed a very positive development in financial year 2013/14 and successfully launched the company’s first newbuild, Mein Schiff 3, in the market. Occupancy of the fleet, currently comprising three cruise ships, was improved by 1 percentage point to 102 per cent; the average rate per day per passenger also rose to 171 euros, up by 9 per cent year-on-year. With Mein Schiff 4, to be commissioned in June 2015, and the two newbuilds ordered, Mein Schiff 5 (2016) and Mein Schiff 6 (2017), TUI Cruises will consistently continue its growth path in the premium cruises market segment. Occupancy of the luxury and expedition cruise ships at Hapag-Lloyd Kreuzfahrten fell slightly by 2 percentage points year-on-year to 68 per cent. However, overall the Sector recorded a positive development in the second half of the financial year, in particular in relation to the two expedition cruise ships and thanks to the amortisation of the start-up costs for the Europa 2 luxury cruise ship. The average rate per day per passenger in the period under review climbed by 7 per cent to 450 euros. For the fiscal year 2014/2015 the Group has confirmed that Hapag-Lloyd will break-even.