Drop in profits for Tui Travel
23 August 2010 19:47
Tui Travel, Europe’s largest holiday firm is reporting a reduction in profits in its UK market due to disruption caused by the Volcanic Ash cloud and the Government’s emergency budget.
It would appear that the German market has also been more conservative this year with reports that although bookings remain strong, German customers have booked cheaper holidays this year.
Despite previous forecasts predicting profits of between £440m and £480m for the year to 30 September, Tui’s latest update has wiped almost 10 per cent off its market value with predicted profits in the low £440 millions.
TUI Travel cited a reduction in booking levels due to volcanic ash disruption in mid-April, followed by further airspace closures, good weather and post election uncertainty regarding the emergency budget.
While TUI said that bookings had increased in recent weeks, it is understood that load factors are slightly down on 2009.
This could be great news for travellers as TUI will now have to sell a higher than expected number of holidays at a lower price during the remainder of its financial year, meaning travellers could benefit from slashed prices on package deals.
The most popular destinations for Brits travelling abroad in summer 2010 are the Balearics, Greece, Turkey, Canaries and mainland Spain. Popular longer haul destinations include Mexico, Florida, the Dominican Republic and Jamaica.
Travellers are reminded to ensure they have adequate travel insurance in place before they travel to help to protect them from any disruption or delays they encounter on their journey and to cover them while they are on holiday. World First Travel Insurance offer single trip travel insurance policies priced from £7* and annual travel insurance from £18.