TUI has reported an 11% drop in bookings in the UK for summer 2012 compared to last year.
In its annual report released to shareholders on Friday, the travel giant said the drop was partly down to a 9% reduction in UK capacity.
It has currently sold 19% of the programme in the UK market.
But TUI said average selling price is up 9%, partly reflecting cost inflation of approximately 5% and the higher proportion of differentiated products sold, which currently account for 65% of sales, up eight percentage points on last year.
Meanwhile, for winter 2011/2012 UK volumes sold since TUI’s previous update are down 12%.
TUI said this highlights the later booking profile compared with last year.
“This slow down is being driven by the continuing issues in North Africa and a weaker consumer environment,” it said.
UK winter capacity has also been reduced by 9%, mostly coming out of Egypt and Tunisia.
Booked load factor remains broadly in line with prior year at 48%.
Looking forward, TUI’s report said: “We remain cautious about 2012, given the continued economic uncertainty in Europe, a slow recovery of demand to North African destinations and increased volatility in fuel prices and currency exchange rates,” said the report.
“There is, however, every reason to believe that the demand for leisure travel will continue to experience robust growth in the long term. TUI Travel has already proved resilient in a challenging market environment and, with a heritage in leisure travel and a diverse range of experiences on offer, the company is well placed.”
Click here to read an interview with TUI chief executive Peter Long.
