Travel company TUI has published a pre-close trading update for the fourth quarter of 2023, confirming that customer demand for travel remains strong. The company expects to achieve its earnings target for the fiscal year 2023. Key points from the update include:
- Strong demand for the Summer 2023 season, with a pipeline of 13.7 million bookings, a 5% increase from the previous season and close to pre-pandemic levels.
- 1.1 million additional bookings have been taken since the Q3 2023 update, with demand in the final month of the season significantly ahead of Summer 2022.
- TUI has extended the season in Greece and Turkey to accommodate increased demand.
- Average selling prices (ASP) for Summer 2023 are 8% higher than the previous season and 27% higher than Summer 2019.
- Positive momentum continues into Winter 2023/24, with an expanded program and overall bookings up 15% from Winter 2022/23.
- The UK market is the most advanced in terms of bookings, with bookings up 8% and ASP up 3% compared to Winter 2022/23.
- TUI reconfirms expectations to increase underlying EBIT significantly for both Q4 2023 and FY 2023 compared to FY 2022.
- The company has mid-term ambitions to accelerate profitable growth with new customer segments and aims for underlying EBIT to significantly build on €1.2 billion by 2025/26.
- TUI plans to issue its full-year results on December 6, 2023, and will hold a presentation for investors and analysts on the same day.
Overall, TUI is experiencing strong demand for travel across its markets and expects positive financial results for the upcoming fiscal year.