Published on : Feb 11, 2015
Demand from British holidaymakers helped Tui Travel, the owner of Thomson Group, to tackle the tough competition in Germany and other parts of the world. The first ever result after the merger of UK firm with its German sister concern show that the UK sales for winter holidays increased by 6%, while the number of customers increased by 3% in December and January.
The summer bookings in UK went up by 4% and for holidays about another 38%, which is a big deal for main markets of Tui. The popularly booked shorter trips were Cyprus, Greece, and Balearics and the long-haul trips were Florida, Jamaica, and Mexico.
However, business staggered in German market and some other regions. Only 1% of German customers booked for winter holidays, with the profit margins largely being hit by severe competition in Canary Islands. Additionally bookings from Nordic customers dropped by another 7%.
Friedrich Joussen, joint chief executive stated business was good in UK, while tough for Nordics, but still better than the year before. The trading was tough in Germany due to price pressures and margin pressures added up in the Canaries.
The company hasn’t mentioned the reason for strong sales in UK. However, analysts predict drop in energy costs and the strong of sterling as compared to euro may have lead people book to foreign holidays. The company further added that it is positive about achieving a good profit growth rate of 10% to15% in 2015.