TUI Is projecting Record Revenue In Q2 2024 Amid Strong Travel Demand

TUI Reports Record Revenue In Q2 2024
Advertisements

TUI ACHIEVES RECORD Q2 REVENUE OF 3.6 BILLION EUROS DRIVEN BY STRONG DEMAND IN HOTELS, RESORTS, AND CRUISES. BOOKING TRENDS FOR SUMMER 2024 REMAIN PROMISING, WITH REVENUE AND EARNINGS EXPECTED TO GROW SIGNIFICANTLY.

Advertisements

TUI Group experienced a record-breaking second quarter in 2024, with revenue soaring to 3.6 billion euros, a 16% increase from the previous year. Despite geopolitical uncertainties, the company remains optimistic about its full-year performance, projecting significant revenue and earnings growth.

TUI Group Demonstrates Strong Financial Performance

TUI’s revenue surged by 16% in Q2 2024, reaching a record 3.6 billion euros, compared to 3.2 billion euros in the same period last year. The company’s underlying Group EBIT, typically weaker in the second quarter, improved by 54 million euros to -189 million euros.

The Hotels & Resorts and Cruises segments delivered exceptional results, boosting underlying EBIT by 91 million euros to 171 million euros. However, the Markets & Airlines segment saw a decline in underlying EBIT to -326.1 million euros, primarily due to the sale of the Canadian tour operator.

Advertisements
Advertisements

Increased Guest Numbers

During the reporting period, 2.8 million guests traveled with TUI, marking a 14% increase from the previous year. The average load factor remained high at 93%. The winter season concluded strongly, with bookings up 9% and average prices increasing by 3% compared to the previous year.

Advertisements

Promising Summer Bookings

Booking trends for Summer 2024 look promising, with a 5% increase in bookings and a 4% rise in average prices. Currently, 60% of the summer program has been sold. CEO Sebastian Ebel highlighted the continued popularity of travel, noting growth opportunities in new markets and among new target groups.

Segment Highlights

Hotels & Resorts: This division achieved a record EBIT of 117.4 million euros and total revenue of 247.3 million euros in Q2 2024, driven by a 9% increase in overnight stays and higher room rates at TUI. Key brands, especially Riu, contributed to an occupancy rate of 81% and a 9% increase in the average daily rate to 109 euros.

Cruises: The Cruises segment reported a fourfold increase in underlying EBIT, reaching a record 70.1 million euros. Improved capacity utilization and higher average rates, which rose by 20% to 221 euros, contributed to this performance. The occupancy rate also increased by 6 percentage points to 98%.

Advertisements

TUI Musement: Revenue grew by 15% to 149.5 million euros, although underlying EBIT decreased to -16.5 million euros due to ongoing investments. The number of guest transfers rose by 14% to 3.9 million, and 1.5 million experiences were sold, a 9% increase from the previous year.

Regional Performance

Northern Region: Despite better operating business, EBIT fell by 17.4 million euros to -164.9 million euros due to the absence of contributions from the sold Canadian venture.

Central Region: This region saw improved customer numbers and prices, with EBIT improving by 13 million euros to -89.1 million euros.

Western Region: EBIT dropped by 12.9 million euros to -72.1 million euros due to higher IT expenditure and business transformation costs, despite more tours sold and higher prices.

Future Outlook

TUI ended Winter 2023/24 with strong bookings and higher average prices. For Summer 2024, bookings have increased by 5%, with average prices up by 4%. Key destinations like Greece, Turkey, and the Balearic Islands remain popular. The group closely monitors geopolitical events and can shift capacity flexibly as needed.

In the Hotels & Resorts segment, bed nights and occupancy rates are up, with daily rates 9% higher than last year. The Cruises sector will operate its entire fleet, with Mein Schiff 7 joining in June. The number of available passenger days and booked occupancy rates are both higher than last year.

Strategic Growth and Transformation

TUI continues to focus on strategic measures and transformation to drive future growth. Despite macroeconomic and geopolitical uncertainties, the TUI company confirms its full-year guidance, expecting revenue to grow by at least 10% than q2 and underlying EBIT by at least 25%.

Advertisements
Advertisements