Holiday giant TUI will not offer last-minute deals with low prices for the summer amid a recovery in customer demand, its chief executive has said.
Ritz Joussen said that unlike in previous years, the company will maintain its current prices.
“There will be practically no last-minute deals this summer,” he told reporters.
“In the last six weeks we have seen demand beyond 2019. We want to keep this momentum, but we will not suddenly switch to discounts.”
After two years of crisis, we expect TUI to become profitable again in the current financial yearFritz Joussen, Tui
TUI said prices were up 20 per cent for this summer, but bosses stressed this was due to longer holidays and more expensive travel, including five-star hotels, as many people headed back for the first time since the coronavirus pandemic to travel.
It came as the company more than halved its losses over the past six months as the recovery in customer numbers accelerated and bookings soared.
For the six-month period ended March 31, the company reported a profit loss of 614.5 million euros, after a loss of 1.3 billion euros in the same period last year.
TUI told shareholders it could return it to profitability by the end of the year.
Expecting a “strong” summer, it has already reached 85 percent of summer 2019 booking levels before feeling the impact of the pandemic.
The latest quarter was “improved significantly” as the easing of Covid-19 restrictions helped boost bookings.
The tour group said its UK branch “continues to lead” in summer bookings, which are currently up 11 per cent from summer 2019 levels.
TUI expects total summer bookings to “close” to 2019 levels.
It’s been spurred by holidaymakers booking “more at short notice” and also spending more money on each trip, the company said.
Meanwhile, revenue for the past six months rose more than five-fold to €4.5 billion from the same period last year when the company was still struggling with coronavirus restrictions.
Mr. Joussen said: “The high demand for travel and the very good business development confirm our forecasts.
“2022 will be a good financial year. The capacity is almost reaching the pre-corona level of 2019.
“After two years of crisis, we expect TUI to become profitable again in the current financial year with a clearly positive adjusted EBIT (earnings before interest and taxes).
“This is the basis for new growth.”
https://www.independent.ie/life/travel/travel-news/no-cheap-last-minute-holiday-deals-this-summer-says-tui-41639853.html No cheap last-minute holiday deals this summer, says TUI