Frankfurt (awp/afp) – The war in Iran continues to favor the trend toward last-minute bookings, highlighted the world leader in tourism TUI on Wednesday, confirming its revised annual forecasts in April.
“Our results as well as the entire market show a trend towards increasingly short-term bookings, particularly in favor of destinations in the western Mediterranean,” the group stated when releasing its quarterly results.
Nearly half of the consumers planning to travel this summer have not yet booked, the statement added.
Demand is shifting towards Spain, including the Balearic Islands and the Canaries, as well as Greece, which are expected to be the most popular destinations this summer.
The Hanover-based group is anticipating an increase in average prices in hotels and cruise ships, which should partially offset the rising costs.
From January to March, the group’s revenue, which offers a range of trips, hotels, charter flights, and cruises worldwide, slightly increased by 1.7% at constant exchange rates to 3.74 billion euros (almost equivalent in Swiss francs at the current rate).
The operating loss of 188 million euros is approximately 9% lower than the previous year, despite the negative impact of the war in Iran, estimated at 40 million, and Hurricane Melissa in Jamaica, at 5 million.
In April, TUI decided not to provide an annual revenue forecast and is still cautious about doing so in an unstable environment.
The adjusted operating profit from exceptional items (adjusted Ebit) is expected to remain between 1.1 and 1.4 billion, similar to the previous year’s level of 1.4 billion.
afp/ib
