TUI AG has laid down some ambitious targets for online sales and says results for its tourism division in 2003 were let down by a poor start to what it described as “a crisis year”.
Earnings for the tourism division were E208 million. The strongest performing regions were ‘Destinations’ and Northern Europe. Central Europe was the weakest. In a statement the company said: “Earnings of the tourism division were substantially affected by the poor business trend in the first half of the year”.
The group posted growth in sales of 6.1% over winter and says summer bookings are already 3.3% ahead.
It is optimistic for 2004 after the first quarter was up 27% year-on-year. In a statement TUI AG chief executive Michael Frenzel said: “At the end of the year, TUI will once again be able to present good results. The company debts will have decreased even further and the company will have reinforced its overall position on the markets.”
TUI says last year was ‘a crisis year’ for the industry, but says it managed to maintain positive results due to a number of key strategies. The travel group puts it success down to its ability to stay flexible to demand, steer customers towards its own product and maintain regional diversity. Mr Frenzel said: “This international alignment means that poor demand in the German market was compensated for by the strength of the English and French markets.”
Mr Frenzel says it is hopes to have 20% of all booking via the internet “in the not too distant future”. The Group’s internet sales have doubled since 2000, and last year amounted to E726 million, which it hopes will double again this year.
The group plans to expand further into Eastern Europe this year and is expected to announce an acquisition in Russia in the coming weeks.
Report by Ginny McGrath
