Tui on track for earnings leap as holiday spending remains robust

Travel giant Tui has said it remains on track for annual earnings to rise by at least a quarter as consumers continue to prioritise spending on holidays.

The German group, which recently ditched its listing on the London stock market to focus solely on Frankfurt, said summer bookings rose 6% and added it was seeing a “promising start” to the winter season, with bookings up 7%.

The price of its holidays rose 3% for the summer period and are up 5% so far for winter.

But this is not just down to increased prices, with Tui saying it is also partly due to holidaymakers choosing more expensive trips.

It said this was “helping to offset the higher inflationary-driven cost base we are witnessing across the business”.

It confirmed guidance for underlying earnings over the full year to September 30 to rise by “at least” 25% on last year’s 977 million euros (£500 million).

Tui said it has been a “promising start to winter 2024-25 as consumers continue to prioritise spend for leisure experiences”.

The group said it added another 1.4 million summer holiday bookings since its update in mid-August, taking the total for the season to 14.7 million.

The most popular summer destinations included Spain, Greece and Turkey.

In the UK, summer bookings lifted 5%, with its programme 97% sold.

Its winter programme is already 40% sold in the UK and remains “in line with the high levels of the prior winter season”.

Sought-after destinations over the winter season include the Canaries, Egypt and Cape Verde but it added that Thailand, Mexico and the Dominican Republic are set to be popular long-haul choices.

Tui is no longer on the London Stock Exchange after it ended its dual listing in June after around nine years in favour of a sole listing in Germany.