Tui said its customers were continuing to desert Turkey and north Africa, as the tour operator announced an overall recovery in bookings by European holidaymakers.
Tui, which runs the Thomson and First Choice brands, said there had been more demand for holidays in Greece, the Canary Islands and long-haul destinations, but there had been "a further shift away from Turkey, having already reduced significantly as a destination in the prior year".
It added: "Similar to Winter, lower demand for north Africa and Turkey is offset by higher demand for other destinations such as the Western Mediterranean and Caribbean."
The comments contrast to those by Thomas Cook, which on Tuesday said there were early, tentative signs that tourists were returning to Turkey, which has been hit by political instability since an attempt by the military to overthrow the government last year.
Last year Tui said constant-currency revenues and profits were up despite the disruption from terrorism and political instability thanks to demand for long-haul destinations and cruise bookings.
Friedrich Joussen, chief executive, said the company was in a robust position because it was diversified across many countries and was focusing on growing its hotel and cruise businesses.
Tui said its summer 2017 season was trading in line with expectations, with revenue up 9 per cent and customer numbers up 4 per cent. Bookings excluding Turkey were up 7 per cent.
It reiterated its guidance of at least 10 per cent growth in underlying earnings before interest, tax, depreciation and amortisation this financial year.
While customer numbers were up 6 per cent in central Europe, they were flat in Belgium, Holland and Luxembourg.
Analysts at Panmure Gordon said the figures showed the company was in "a solid position for this time of the year".
Cenkos Securities added: "The group notes the impact of macroeconomic and geopolitical challenges in certain source markets and destinations but its business model is robust with a diverse mix of owned product."
Shares were down 0.5 per cent in early morning trading at £11.29.
Sample the FT's top stories for a week
You select the topic, we deliver the news.
Source: Tui's customers desert Turkey and north Africa
No comments:
Post a Comment