Saturday, October 12, 2024

Travel demand remains resilient in Q2 2024: TUI achieves record revenue of 3.6 billion euros

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2.8 million guests travelled with TUI in the second quarter of financial year 2024 – 14 per cent more than in the previous year (2.4 million). At 93 per cent, the average load factor remained at the previous year’s high level. People’s continued high willingness to travel, record results in Hotels & Resorts and Cruises as well as higher prices and rates ensured that the underlying Group operating result improved by 54 million euros to -189 million euros (previous year: -242 million euros) in the second quarter of the financial year, which is typically weaker in the industry. Revenue rose by 16 per cent to a record high of 3.6 billion euros (previous year: 3.2 billion euros).

In the Holiday Experiences segment, the Hotels & Resorts division achieved a record result of 117.4 million euros in the months from January to March 2024. The underlying EBIT of the previous year was increased by more than half (previous year: 78.0 million euros). The division also achieved its highest ever total revenue of 247.3 million euros in the reporting period. This corresponds to an increase of 13 per cent (Q2 2023: 218.3 million euros). This positive development was due to a 9 per cent increase in the number of overnight stays (7.6 million) and higher room rates, as well as overall operationally strong business at the key hotel brands, particularly Riu. Overall occupancy in the division was a high 81 per cent. However, the average daily rate achieved rose by 9 per cent year-on-year to 109 euros.

The Cruises sector continued its strong operating performance in the second quarter of financial year 2024. Underlying EBIT more than quadrupled compared to the previous year and reached a record level of 70.1 million euros (previous year: 14.8 million euros). The reasons for the positive earnings performance are higher capacity utilisation and significantly improved average rates. The occupancy rate rose by 6 percentage points year-on-year to 98 per cent, while the average rate across all cruise brands improved by 20 per cent to 221 euros.

TUI Musement increased its revenue by 15 per cent to 149.5 million euros in Q2 2024 (Q2 2023: 130.3 million euros), underlining the strong growth in this segment and the advantage of the Group’s integrated business model. At -16.5 million euros, underlying EBIT was 3.7 million euros lower than in the prior-year period (Q2 2023: -12.7 million euros), as TUI Musement continues to invest in the expansion of its B2C experience offering and more B2B offerings with partners. The number of guest transfers in the destinations rose by 14 per cent to 3.9 million (Q2 2023: 3.4 million). In addition, 1.5 million experiences were sold in the reporting period, an increase of 9 per cent compared to the previous year (Q2 2023: 1.3 million).

The Markets & Airlines segment benefited from stronger demand and higher prices as well as the return to normal hedging policy in the reporting period. However, results were impacted by the prior year still being supported by positive results from our tour operator venture in Canada, which was sold in May 2023. As a result, the underlying EBIT fell by 17.6 million euros to –326.1 million euros (Q2 2023: -308.5 million euros). The number of guests rose by 339,000 to 2.8 million. At 93 per cent, the average load factor once again reached the high level of the same quarter of the previous year (Q2 2023: 93 per cent).

Despite better operating business in the current quarter, earnings in the Northern Region (UK, Ireland and Nordic countries) were -164.9 million euros, 17.4 million euros below the previous year’s figure (Q2 2023: -147.5 million euros) due to the absence of the aforementioned earnings contribution from the Canadian venture.
The Central Region with tour operators in Germany, Austria, Switzerland and Poland recorded a good operating performance with higher customer numbers and increased prices. Underlying EBIT improved by 13.0 million euros to -89.1 million euros (previous year: -102.1 million euros).
At -72.1 million euros, underlying EBIT in the Western Region (France, Belgium, Netherlands) was 12.9 million euros lower than in the previous year (Q2 2023: -59.2 million euros). More tours sold and higher prices were offset by costs in connection with the transformation of the business, including higher IT expenditure, in the reporting period.

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