Hanover, 28 September 2016

TUI Group raises its operating profit guidance for the 2015/16 financial year and reports positive outlook for winter

  • Outlook for growth in underlying EBITA from at least 10 percent to between 12 and 13 percent1
  • Further additions to the own hotel and cruise portfolio pay into the new vertically integrated tourism group strategy
  • Positive outlook for the winter season with strong growth driven by long haul

The TUI Group is expecting another very successful year and has raised its operating profit guidance for the full year results. As the 2015/16 year draws to a close (ending 30 September), the TUI Group is confident of delivering between 12 and 13 percent growth in EBITA following on from the previous guidance of least ten percent.1

RIU and the Cruises division, together with the very positive development of the tour operator business in the UK, have contributed to this excellent result. TUI has held on to its market lead despite the severe geo-political challenges in some of its eastern Mediterranean and North African markets, proving itself to have strong resilience in what has been a challenging year for the industry. TUI emphasises its extensive international business operations, the diversity of its destinations and the continued progress in its transformation into an integrated tourism group focusing on hotel and cruise business. TUI operates in more than 100 destinations around the world. When Fritz Joussen took over as CEO in 2013 and the TUI Travel merger that he initiated went through at the end of 2014, the business operations and investments became focused on own hotels, resorts and cruise ships. TUI’s own tour operators guarantee market access and high occupancy rates for the very profitable Hotels and Cruises divisions.

Fritz Joussen: “We're driving growth and consistently pushing ahead with our transformation into an integrated tourism group focusing on our hotel and cruise business. The 2016 summer season, which was a particularly challenging time for tourism companies and airlines, proved that we have made the right strategic choices. Investments in new hotels and additional cruise ships have allowed us to strengthen our own products and brands over recent months. Reflecting on our positive outlook, we are also currently seeing good growth in revenue of 11 percent in the upcoming winter season. Growth in bookings for our long haul destinations is driving this positive development,“ commented Fritz Joussen, Chief Executive Officer of the TUI Group. “We’re very strong in the Mediterranean region, we’re currently investing in the Caribbean and South-East Asia, and in the expansion of our current 14-strong cruise ship fleet. This diversity optimises our business and make our risks manageable,“ added Joussen.

TUI opened five additional hotels this season and further additions are in the pipeline over the next few months – for example in Jamaica and Tenerife. Growth in Cruises continued with the launch of Mein Schiff 5 in July 2016. The modernisation of the Thomson Cruises fleet continued in summer 2016 with the launch of TUI Discovery, making the cruise portfolio even more attractive for the British market. Expansion and modernisation in the luxury segment continues with an order for two new Hapag-Lloyd Cruises expedition vessels.

The very positive development of bookings for the winter season is predominantly driven by the growing popularity of TUI‘s long haul destinations. Long haul bookings in the UK are up 26 percent – particularly to Mexico and the Dominican Republic. There has also been growth in bookings to Cuba and Sri Lanka, which will be new TUI Airlines 787 Dreamliner destinations for the winter season. Long haul bookings in the German market are 10 percent higher than last year – with growth driven by the USA, Thailand and Mexico.

The TUI Group will publish its full-year results for 2015/16 on 8 December.

1 Assuming constant foreign exchange rates are applied to the result in the current and prior period and treating Hotelbeds Group as discontinued operations.