TUI is looking at expanding into more affordable holiday destinations as the cost of traditional hotspots has increased for UK customers following sterling’s slump.
Speaking as the group announced a 12% leap in earnings to €1.1 billion for the last financial year, CEO Fritz Joussen said the operator was looking to offer more packages to countries like Bulgaria in order to continue to offer holidays to UK customers at the same price.
On the whole, the UK market had performed well, he said, with volumes up 3.5%, although earnings in the northern region as a whole were down nearly 10%.
Overall, TUI said its new strategy of owning its own hotels and cruise ships had paid off, with 56% of its profits in the year to the end of September coming from TUI cruises and hotel subsidiaries.
Joussen said: "For the third consecutive year we have delivered double digit growth in our operating result. We are extending our position as the leading international tourism company."
Turnover during the period was up 11.7% to €19.2 billion.
Joussen said winter bookings had got off to a good start, with earnings in line with expectations.
"Thanks to the strong growth of our hotel and cruise brands, TUI now delivers stronger margins and is less seasonal," he added.
