TUI Group delivers strong performance during H1 2018
Hamburg, 9 May 2018. “We continue to deliver growth, all trends remain intact, and our very good trading performance for summer 2018 fully matches our expectations. At growth of 26 per in our operating result and seven per cent in turnover, TUI Group concludes the first half of financial year 2018 with a very strong set of results, and we reiterate our full-year guidance,” said TUI Group CEO Fritz Joussen at the presentation of the Group’s H1 results on board the new Mein Schiff 1 in Hamburg. He added: “The very good earnings growth of 26 per cent in H1 2018 is driven by the continued strong demand for our holiday experiences. We offer the right products in the market: TUI hotel brands such as RIU, Robinson and TUI Blue and in particular TUI Cruises’ Mein Schiff fleet are setting standards around the globe. Forecasts for cruising are excellent. German and European holidaymakers are beginning to embrace this way to travel. Due to demographic change, traditional target groups are growing. At the same time, sea voyages are becoming increasingly popular among families and younger people. The convergence of these two very promising trends will further accelerate growth over the next five to ten years. And we are only at the beginning of this trend.” Additional new vessels will be delivered to TUI Group’s cruise subsidiaries in 2018, 2019 and 2023 in order to further expand their market position. Moreover, TUI Group’s Supervisory and Executive Boards gave the green light for the construction of a third expedition cruise ship for Hapag-Lloyd Cruises on Tuesday. Hapag-Lloyd Cruises will shortly launch the planning and negotiation process for a further Hanseatic class ship. “This market is growing strongly. Thanks to its experience, competence and high quality standards, Hapag-Lloyd Cruises offers great potential to attract new international customer groups and deliver stronger growth in the expedition cruise segment,” said Joussen.
TUI Group’s investments and growth roadmap also focus on TUI Group’s hotel companies: RIU, Robinson, TUI Magic Life and the young hotel brand TUI Blue. The Group will continue to expand its portfolio of own hotels, which currently comprises more than 380 hotels. Only last week, two new TUI Blue hotels were opened in Marmaris, Turkey and in Mallorca. TUI Blue’s portfolio has thus grown to ten hotels. The Group’s Spanish hotel brand RIU remains another key earnings and growth driver. RIU is also growing with new hotel projects in Europe, the Caribbean and South East Asia. The brand features strong occupancy rates and traditionally high profitability levels.
Overview – TUI Group H1 2018 highlights
In the period under review (1 October 2017 to 31 March 2018), TUI Group increased its turnover by 7.2 per cent to 6.81 billion euros (previous year 6.35 billion euros). On a constant currency basis, the Group posted growth of 8.5 per cent to 6.89 billion euros. The seasonal underlying EBITA loss was improved by 26.0 per cent to -158.6 million euros including several one-off effects (previous year -214.3 million euros). Apart from the foreign exchange translation impact and the Easter effect (earlier timing of Easter in 2018), the Group incurred costs in the wake of the insolvency of the Niki airline and recorded gains on disposal from sales of RIU hotels in the period under review. On a constant currency basis, underlying EBITA improved by 29.8 per cent to -150.5 million euros.
TUI Hotels & Resorts delivers strong results
Hotels & Resorts delivered a significant improvement in its operating result in H1 2018. The segment benefited from various factors including an overall increase in average occupancy of its hotels and higher average rates. It also adjusted and streamlined its portfolio: The segment realised a gain of 38 million euros from the sale of three RIU hotels.
- Underlying EBITA: +45.9 per cent to 179.2 million euros (previous year 122.8 million euros)
- Underlying EBITA at constant currency rates: +48.2 per cent to 182.0 million euros
- Average revenue per bed: 71 euros (previous year 70 euros)
- Average occupancy: 77.1 per cent (previous year 75.3 per cent).
For summer 2018, the segment is planning to open five new TUI hotels including Riu Astoria in Bulgaria, a TUI Sensatori hotel in Rhodes and the recently acquired Riu Palace Zanzibar.
TUI Cruises continues growth path – more capacity, higher rates, higher earnings
The Cruises segment remains on a growth path. The positive trends and forecasts for the next few years have also been confirmed by current growth rates. In the period under review, the segment delivered strong growth in underlying EBITA:
- Underlying EBITA: +23.2 per cent to 92.4 million euros (previous year 75.0 million euros)
- Underlying EBITA at constant currency rates: +24.0 per cent to 93.0 million euros
Average rate per passenger per day:
- TUI Cruises 148 euros (previous year 147 euros)
- Marella Cruises 136 GBP (previous year 127 GBP) (2)
- Hapag-Lloyd Cruises 600 euros (previous year 595 euros)
Average occupancy:
- TUI Cruises 98.9 per cent (previous year 99.7 per cent)
- Marella Cruises 99.6 per cent (previous year 99.6 per cent)
- Hapag-Lloyd Cruises 76.4 per cent (previous year 73.8 per cent)
Due to the continued rise in demand, TUI is planning to expand the segment through additional new builds.
TUI Destination Experiences
The TUI Destination Experiences segment delivered a good operating performance in the period under review. In H1, the number of customer arrivals was up 5 per cent. TUI is planning to further expand this segment covering services, excursions and experience offerings in the destinations. As TUI CEO Fritz Joussen announced in March, this segment will be another growth pillar for the Group. TUI’s Spanish subsidiary TUI Destination Services has therefore been renamed as TUI Destination Experiences in order to highlight the expansion of its business purpose and services to the market, TUI’s business associates as well as its customers.
- Underlying EBITA at constant currency rates: -7.6 million euros
- Sales & Marketing: 5.5 per cent growth in customer volumes across all regions, turnover up 7.8 per cent across the regions
The Sales & Marketing companies in the source market regions delivered a sound operating performance in H1 2018, in particular in the Nordic countries and Benelux. Customer volumes grew by 5.5 per cent across all regions, with total turnover climbing by 7.8 per cent to 5.76 billion euros (previous year 5.35 billion euros). At 19 million euros, underlying EBITA benefited from the earlier timing of Easter in 2018.
Underlying EBITA across all regions: +3.1 per cent to -371.9 million euros (previous year
-383.9 million euros)
Underlying EBITA across all regions at constant currency rates: +2.8 per cent to -373.3 million euros
In Northern Region (UK & Ireland, Nordic countries, Canada, Russia), the Nordic countries delivered a substantial increase in earnings. This was partly attributable to the very strong trading performance, the implementation of the Group’s centrally launched Yield Management and CRM systems and the migration from the local brand to the global TUI brand. In the UK, demand remained strong. The rebranding from Thomson to TUI was successfully completed with an additional cost of 20 million euros in the period under review. Earnings by the region also include a benefit of 15 million euros from the earlier timing of Easter in 2018.
Underlying EBITA Northern Region: +12.7 per cent to -120.5 million euros (previous year
-138.0 million euros)
Underlying EBITA Northern Region at constant currency rates: +11.8 per cent to -121.7 million euros
Central Region (Germany, Austria, Switzerland, Poland) recorded a strong increase in volumes: In the period under review, 2.418 million guests from Central Region travelled with TUI. This is an increase of 12.7 per cent versus the prior year (2.146 million). Germany recorded strong demand for holidays, with volumes up 10 per cent. In aviation, two effects almost offset each other in the period under review: The result reflected the non-repeat of last year’s sickness event in TUI fly (benefit of 24 million euros), which was almost offset by the write-off of a wet lease receivable of 20 million euros as a result of the Niki insolvency. Central Region posted a positive Easter effect of 2 million euros.
Underlying EBITA Central Region: -1.5 per cent to -145.8 million euros (previous year -143.7 million euros)
Underlying EBITA Central Region at constant currency rates: -1.6 per cent to -146.0 million euros
In Western Region (Belgium, Netherlands, France), Benelux performed well in H1 2018. The region also benefited from the non-repeat of the rebranding costs incurred in Belgium in the prior year for the migration to the global TUI master brand. In France, the situation remains challenging. This is partly due to the full inclusion of the trading losses of Transat, acquired in October 2016, and additional marketing costs to support the rebrand from Transat to TUI. Volumes across the region climbed by 4.1 per cent. The benefit from the earlier timing of Easter totalled 2 million euros.
Underlying EBITA Western Region: -3.3 per cent to -105.6 million euros (previous year -102.2 million euros)
Very good trading performance – summer 2018 continues to fully meet TUI expectations
Trading for Summer 2018 (as at 29 April 2018) is very good and fully matches TUI's expectations. Demand for Spain remains strong. Particularly strong growth in bookings is recorded for Turkey, North Africa and Greece. Destinations such as Cyprus, Croatia or Bulgaria also report a sound increase in bookings.
Source market turnover: +7 per cent (3)
Bookings: + 5 per cent
(1) on a constant currency basis
(2) including all package tour elements
(3) on a constant currency basis
More information is available on TUI'd website www.tuigroup.com
About the TUI Group
TUI Group is the world’s leading tourism group operating in around 180 destinations worldwide. The company is domiciled in Germany. The TUI Group’s share is listed in the FTSE 100 index, the leading index of the London Stock Exchange, and in the German open market. In financial year 2017, TUI Group recorded turnover of €18.5bn and an operating result of €1.102bn. The Group employs 67,000 people in more than 100 countries. TUI offers its more than 20 million customers comprehensive services from a single source. It covers the entire tourism value chain under one roof. This comprises around 380 Group-owned hotels and resorts with premium brands such as RIU and Robinson as well as 16 cruise ships ranging from the MS Europa and MS Europa 2 luxury class vessels to the Mein Schiff fleet of TUI Cruises and the vessels of Marella Cruises in the UK. The Group also includes leading international tour operator brands, 1,600 travel agencies in Europe and five European tour operator airlines with around 150 modern medium- and long-haul aircraft. Global responsibility for sustainable economic, ecological and social activity is a key feature of our corporate culture. TUI Care Foundation promotes the positive effects of tourism. It initiates projects that create new opportunities for the next generation and contributes to a positive development of the holiday destinations. Further information is available at www.tuigroup.com.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
19/04 01:29
Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th
18/04 21:49
Greek Climate Change Minister signs memorandum for Attica fire protection zones
18/04 20:32
'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece
18/04 20:17
18/04 17:40
17/04 21:06
Thessaloniki Port: Performance growth for 2023 with record container throughput
17/04 20:57
Traffic regulations imposed in Athens for the 41st Peace Marathon on Sunday
17/04 20:52
17/04 18:15
Greek Foreign Minister addresses the 9th Our Ocean Conference in Athens
17/04 17:12
16/04 21:02
NHM hosts the Trial of Pericles at the Harris Theater in Chicago on April 17
16/04 20:17
Greece will invest $830 million to protect marine biodiversity
16/04 01:46
New York Greek Independence Parade honors 1821 and solemn Cyprus Anniversary
16/04 01:35
Olympic Games Paris 2024: Olympic Flame to be lit at Ancient Olympia in Greece
16/04 00:29
European Committee of Regions and UN release study on Rural Tourism
15/04 20:41
15/04 19:58
Minister: Greece is transforming into a hub for exporting quality agri-food products
15/04 18:51
Greek Environment Minister meets Chinese Deputy Minister of Natural Resources
13/04 00:13
UN Tourism and Croatia to launch Research Centre for Sustainable Tourism
12/04 00:03
2024 marks a critical year in the enduring strength of Greek-German relations
12/04 00:00
11/04 22:07
Ambassador: US committed to upgrade of Greek military and support NATO's SE flank
11/04 19:40
Hellenic Pride on display at rainy Chicago Greek Independence Day Parade
11/04 02:06
Delphi Economic Forum IX: Energy collaboration a 'key' in Greek-Bulgarian relations
11/04 01:58
UN Tourism launches investment guidelines for Albania sector
10/04 19:01
Greek FinMin: New package of economic measures in 2025 to lower taxes, raise pensions
10/04 18:25
Greek city of Nafplion hosts Mediterranean Yacht Show for ninth year running
09/04 23:57
Greek PM on Tilos: Innovative projects for a cyclical economy are of key significance
09/04 23:55
UN Tourism members promote agenda for Europe as region leads global recovery
09/04 23:46
HFS presents 1968, Rousing Docudrama about Greece’s First European Cup April 21
09/04 22:48
Stolen 7th-century BC oenochoe returned to Greece by Hanover museum, municipality
09/04 22:42
Greek civil servants confederation ADEDY to strike on May 21
09/04 21:55
Greek Migration Minister meets Senior US Coordinator for Lawful Migration
08/04 23:48
08/04 23:41
Elliniko-Argyroupoli Mayor marches in Greek Independence Philadelphia Parade
08/04 21:53
Project Voria casino complex in Maroussi moving ahead after environmental report
08/04 21:36
Minister: Up to 120 delegations to take part in 9th Our Ocean Conference in Athens
08/04 19:22
Direct flight from Shanghai to Athens offers access to key tourism market for Greece
08/04 18:31
AI conference to attract distinguished speakers to Thessaloniki on April 25-27
04/04 23:28
City of San Jose marks March 25 with 16th Annual Greek Flag Raising Event
04/04 22:16
Urban plans published for seven townships in Thessaloniki and Attica of Greece
04/04 17:24
FinMin: The new EU economic and fiscal framework is good for Greece
04/04 15:30
Greek PM meets with the chiefs of the international pharmaceutical manufacturers
04/04 00:15
Deputy Minister for Macedonia-Thrace meets US Embassy Deputy Mission Chief
03/04 20:12
Syracuse AHEPA Chapter 37 marks March 25th Greek Independence Day
03/04 18:10
Greece's Delphi Economic Forum on April 10-13 to focus on 'The Great Transition'
03/04 16:42
Minister: Industrial production has returned to the pre-crisis levels in Greece
02/04 18:06
30/03 23:21
Eleni Gatzoyiannis scholarship offered to Greek students at Boston University
29/03 16:44
3rd edition of 'This is Athens - City Festival' with 250+ events from May 1 until June 2
29/03 15:53
Athens Metro station Aghia Varvara to stay closed on Saturday and Sunday
29/03 13:55
Greek Foreign Minister for Economic Diplomacy concludes visit to Montenegro
29/03 12:00
29/03 11:51
28/03 18:41
Attica Region to channel 640 bln euros to services of vulnerable and disadvantaged groups
28/03 17:32
Greece to auction three-month T-bills on April 3, 2024 in a book entry form
28/03 15:46
Greece's Meteora Pyli Geopark added to UNESCO Global Geoparks network
28/03 14:44
IPTO announces framework agreement tender for undersea power cables in Greece
28/03 11:49
IOBE: Construction sector in Greece records robust growth and good prospects
26/03 23:51
St. Thomas Hellenic School honors 1821 and the Feast of the Annunciation in NJ
26/03 21:59
PM at Economic Club of Canada: Greece is an attractive investment destination
26/03 17:56
Greek State budget primary balance reaches a surplus of 3,378 million euros
26/03 11:45
Ancient Messene to get upgraded visitors' facilities after approval by Council
23/03 17:43
New requirements for 'Golden Visa' program to kick in on March 31
23/03 16:49
Athenians continue to head out of the Greek Capital for March 25 long weekend
23/03 16:47
Greek Parliament lights to be turned off for Earth Hour 8:30-9:30 pm
22/03 21:54
US President on Greek Independence Day: Alliance with Greece stronger than ever
22/03 19:51
High diplomacy and geopolitics at Delphi Economic Forum IX in Greece
22/03 19:32
Tax authorities enable payments with foreign bank cards in Greece
22/03 14:19
22/03 00:24
Greece ranks first on list of countries with fastest business environment progress
22/03 00:02
Hellenic Police acquires first electric VAN-type highway patrol vehicle
21/03 22:41
21/03 15:33
Unseen Museum presents "The stele of the twin babies" exhibition in Athens
20/03 22:48
Health Minister: 95% of Greek hospitals to perform afternoon surgeries
20/03 21:52
Greek Deputy Minister of Justice meets delegation from US Embassy in Athens
20/03 21:44
Greek Interior Minister to visit United States and Canada on postal vote
20/03 20:55
Philadelphia Icarians mark 85th Anniversary and organize Apokriatiko Dance
20/03 18:01
Development Minister: We continue the battle against high prices in Greece
19/03 22:28
President of the Hellenic Republic meets her Ethiopian counterpart in Athens
19/03 20:57
19/03 20:25
FinMIn: Moody’s analysis records significant progress in the Greek economy
19/03 11:15
Sector chiefs report: Good news for Greek tourism in 2024 at ITB Berlin
18/03 22:20
American Hellenic Educational Progressive Association honors Past Supreme President
16/03 13:01
Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens
16/03 12:56
Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto
16/03 11:28
Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres
15/03 21:50
Greek Minister announces conference on defence ecosystem in Athens from Lithuania
15/03 13:45
PM: More than 80 hospitals and 156 health centres being upgraded in Greece
15/03 12:55
Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation
14/03 23:43
President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava
14/03 22:58
American Express report highlights Global Travel Trends during 2024
14/03 22:52
Four hospitals in Attica Region already organizing afternoon surgical procedures
14/03 22:49
US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki
14/03 22:43
Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos
14/03 19:32
No new intubations for Covid-19 recorded in Greece for the first time
14/03 18:36
Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday
14/03 14:48
14/03 12:54
Electric buses to be deployed on the streets of Athens and Thessaloniki by May
13/03 22:23
Traffic regulations imposed in Athens for the 41st Peace Marathon on Sunday
'Easter Basket' and 'Godparents basket' to be put into effect next week in Greece
Greek Foreign Minister addresses the 9th Our Ocean Conference in Athens
Greek Climate Change Minister signs memorandum for Attica fire protection zones
Thessaloniki Port: Performance growth for 2023 with record container throughput
Athens State Orchestra presents 'St. Matthew's Passion' by Bach on April 30th
Greek Environment Minister meets Chinese Deputy Minister of Natural Resources
Olympic Games Paris 2024: Olympic Flame to be lit at Ancient Olympia in Greece
Trapped rack-railway passengers returned safely to Diakopto in Peloponnese
Saint Thomas Hellenic School organizes Parent Teacher Organization Fundraiser
The Economist magazine names recovering Greece Best 2022 Performer
Bill for non-state, non-profit universities being tabled in Greek Parliament on Thursday
IPTO report: Rapid implementation of Crete-Attica electricity interconnection
European Committee of Regions and UN release study on Rural Tourism
European Commission: Greece assumes command of Red Sea maritime operation
Public transport, ferry and taxi strikes in Athens on Wednesday
Extra road safety measures adopted for Greek pre-lent carnival and Clean Monday
TUI chief forecast: Tourism sector in Greece to break all records during 2024
Pan-Rhodian Society holds NY ‘Artoklasia’ and Vasilopita at Island Park Panaghia