Tui sees summer sales fall 10% due to cautious UK customers
Summary
Tui, Europe's largest travel company, has seen its summer holiday bookings from UK customers fall by 10%. Customers are booking trips closer to departure dates and choosing Western Mediterranean destinations more than Eastern ones, partly due to concerns about the Iran war and jet fuel prices.Key Facts
- Tui’s revenue from UK summer holiday bookings dropped by 10%.
- Customers are booking holidays later and choosing destinations in the Western Mediterranean instead of the Eastern Mediterranean.
- Tui is reducing the number of airline seats it buys by 4-5% but will keep its own flights at current levels.
- Tui’s CEO said there are no expected jet fuel shortages in the coming weeks.
- The Strait of Hormuz, important for oil and gas shipping, is effectively closed, increasing jet fuel prices.
- Some airlines have raised ticket prices or reduced flights to manage costs and cautious customers.
- Tui reported a €40 million profit loss linked to the US-Israel war with Iran in the first quarter.
- Overall summer booking revenues for Tui fell by 7% compared to last year.
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