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Flat summer sales for merged operation
TUI Travel has issued a positive trading update on the merged Thomson and First Choice business, despite Summer 07 sales remaining flat compared with the previous year.
Poor weather conditions helped First Choice record a seven per cent increase in sales during the period, although TUI UK’s business dropped four per cent. Capacity across the two companies was down one per cent.
A statement from the company said it was buoyed by its recent annual survey of customers’ attitudes on overseas travel and spending.
“The survey confirmed, for the third year running, that 80 per cent of customers consider their holiday to be a significant event in the year and not a luxury item, while 90 per cent said they would not choose holidays as the primary area on which to cut spending.”
Despite cutting winter 07/08 capacity by 11 per cent, primarily through cutbacks in the Canaries, First Choice sales are up 20 per cent and TUI’s up two per cent, giving an overall increase of seven per cent.
“First Choice continues to benefit from remixing its programme to differentiated medium-haul and long-haul product, with sales up 24 per cent and 22 per cent respectively, with bookings driven by demand for Egypt, Tunisia, Mexico and the Dominican Republic,” said the statement.
For the third quarter of the year, the whole of TUI AG, including its European operations, reported an increase in turnover from Euros 5.2bn to 5.8bn. However, this year’s figure includes one month of First Choice trading, which pulled in a turnover of Euros 500m.
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