TUI Group delivers strong performance during H1 2018

Α Decrease font Enlarge font
TUI Group delivers strong performance during H1 2018Hotel companies and cruise businesses reflect the Group’s strength while all trends remain intact

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: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

Tornos
  1. 20/10 20:18

    Athens suburbs of Halandri and Aghia Paraskevi want new bus line to metro

  2. 20/10 20:10

    Piraeus Bank and Thomas Cook sign €40 million deal for expansion in Greece

  3. 20/10 19:49

    Short-term rental owners must finalize registry profile in Greece by end November

  4. 20/10 19:43

    7th New Music Festival to be held in Cyrpus from 5 to 9 November 2018

  5. 20/10 18:58

    EU greenlights funding from Greek state for construction of motorway

  6. 20/10 18:38

    New York City Greek Film Festival 2018 held between October 18-23

  7. 20/10 14:32

    Greek-German Synergy Literary Congress takes place in Berlin

  8. 20/10 12:27

    Free admission for press card holders to Cyprus museums and archaeological sites

  9. 20/10 10:17

    Diving and Culture Tourism: Exploring a Byzantine shipwreck

  10. 20/10 03:11

    Olive tree piece found on Thirasia alters Santorini volcano explosion dates

  11. 19/10 21:32

    Grotesque art exhibition in Thessaloniki Teloglion until November 25

  12. 19/10 18:47

    Cyprus Ministry of Transport statement on the cease of operations of Cobaltair

  13. 19/10 17:22

    Thessaloniki’s historic Aristotelous Square

  14. 19/10 15:44

    AEGEAN and Olympic Air schedule extra flights for Cobalt Air passengers

  15. 19/10 13:14

    Cyprus' residents travelling abroad drop by 0.4% in September 2018

  16. 19/10 11:07

    Medical Tourism: At least 3 binding offers for Athens' Henry Dunant hospital

  17. 19/10 09:02

    “Hysteron, Proteron, Us” show at Archaeological Museum of Lemesos in Cyprus

  18. 19/10 07:52

    Capitalist Realism show in Thessaloniki PhotoBiennale 2018 to January 27

  19. 19/10 07:38

    Myconian Collection wins three Condé Nast Traveler Readers’ Choice Awards

  20. 19/10 05:33

    Medical Tourism: Greek start-up wins top award by EIT Health

  21. 19/10 03:38

    Cyprus Airline Cobalt stops flights amid lack of investment

  22. 19/10 03:28

    Cosco urges stepped up process to approve Port of Piraeus master plan

  23. 19/10 01:11

    Spring Torrents show in Thessaloniki until February 24

  24. 18/10 19:53

    National Hellenic Student Association holds 20th Convention: Tomorrow is Now

  25. 17/10 22:58

    Greek "fakes" and "fasolada" among superfoods of the world

  26. 17/10 22:51

    Free entrance to Athens Acropolis Museum on October 28 national holiday

  27. 17/10 22:31

    Tourist arrivals in Cyprus hit record high in September and first nine months

  28. 17/10 21:23

    Friendship and eros at Aristotle's Lyceum in Athens on October 21

  29. 17/10 20:13

    Special events and free entrance to 63 Greek museums and sites on October 18-21

  30. 17/10 18:04

    More containers moving through Greek port of Piraeus in 2018

  31. 17/10 17:25

    Athens Metro work stoppages very early and late on Friday

  32. 17/10 16:54

    5G network introduced in Kalamata city of Peloponnese next year

  33. 17/10 15:20

    Alexandros Iolas exhibition in Thessaloniki until January 20

  34. 17/10 14:59

    German woman returns ancient mosaic fragments taken from Greece in the sixties

  35. 17/10 13:37

    OECD blacklists Cyprus’ Golden Visas for affluent foreigners

  36. 17/10 12:44

    Scientists: Illegal trade placing Pindos mountain range wild orchids at risk

  37. 17/10 10:33

    "Beyond the Event" exhibition in Thessaloniki until October 25

  38. 16/10 23:03

    First female president of Athens Attica & Argosaronic Hotel Association

  39. 16/10 23:00

    Travelport: Greece among top-5 fastest-growing destinations for Italian travellers

  40. 16/10 22:48

    US Embassy commercial officer stresses USA’s keen financial interest in Greece

  41. 16/10 21:16

    Athens mayor announces improvement projects for iconic Lycabettus Hill

  42. 16/10 20:54

    SETE president Yiannis Retsos: Greece needs a digital strategy urgently

  43. 16/10 20:51

    New round of mergers and acquisitions in Greece's coastal shipping sector

  44. 16/10 17:08

    Foreign archaeological schools honored at Acropolis Museum on October 18-19

  45. 16/10 16:55

    Culture Tourism report: Interesting facts about the Acropolis of Athens

  46. 16/10 15:16

    More ancient wrecks and pottery discovered in Greek ships’ graveyard

  47. 16/10 14:12

    Arrivals and departures of travellers soar in Cyprus during August

  48. 16/10 12:39

    Greek shipping minister meets with Chinese transport minister

  49. 16/10 10:06

    Tranio-MR&H survey: Cyclades islands top hoice for hotel investment in Greece

  50. 16/10 01:03

    Aegean Wines tastings in Athens on October 21

  51. 15/10 23:07

    Lampsa Hotels acquires 50% of remaining stake in Touristika Theretra

  52. 15/10 22:44

    Cyprus Airways announced that it has become member of IATA

  53. 15/10 22:44

    International Space Summit on Mars with top scientists in Cyprus

  54. 15/10 22:08

    Kassiopi privatization finally ready to begin on Greek island of Corfu

  55. 15/10 21:36

    New record: 53 million passengers at Greek airports in first nine months

  56. 15/10 19:28

    Foreign Direct Investment forum gearing up for second event in Greece

  57. 15/10 17:25

    Boston Public TV Station hosts top Spanakopita Contest

  58. 15/10 15:18

    Visit Greece: Grab your camera and capture beauty

  59. 15/10 13:03

    4th Santorini Experience attracts 6,000 visitors from 45 countries

  60. 15/10 12:47

    Conde Nast readers name Greece's Aegean 5th best airline in the world

  61. 15/10 11:33

    4th Panhellenic Congress of Thermal Medicine: Greece among Europe's largest spa centres

  62. 15/10 10:21

    Greek tourism 2018: Regions of South Aegean and Attica dominate receipts in H1

  63. 14/10 12:20

    Travelers can now publish online their sketches and drawings of Greece

  64. 13/10 18:39

    Pink Martini concerts in Athens on December 15 and 16

  65. 13/10 18:31

    Five ways to experience Athens like a local

  66. 13/10 18:26

    Virgin Atlantic: First LGBTQ-only crew to fly from London to New York (video)

  67. 13/10 18:21

    Greek food and beverage companies expanding into Asia

  68. 13/10 17:54

    Pavlos Samios exhibition at Athens Korai Arcade until November 8

  69. 13/10 16:14

    Tangled Garden at Apo Michanis Theater in Athens from October 22

  70. 13/10 15:17

    Nature Tourism: World Migratory Birds Day marked in Greece

  71. 13/10 15:05

    Greece to expand its “Golden Visa” scheme with State bonds

  72. 13/10 12:36

    Travel report: The magical Medieval Castle of Monemvasia in Greece

  73. 13/10 12:15

    Sophia Vari exhibition at Athens Niarxos Cultural center until October 31

  74. 13/10 12:05

    Russian pianist Boris Berezhovsky rocks the Odeon of Herodes Atticus

  75. 13/10 12:01

    North Event holds 1st Greek Panorama B2B Roadshow in the US

  76. 13/10 11:54

    Ancient shipwrecks discovered in Greek waters tell tale of trade (video)

  77. 13/10 11:47

    Private building activity grows by 17.8% across Greece in July

  78. 13/10 11:39

    Greek Chef curates menu for NYSPCC 2018 Food & Wine Gala on November 6

  79. 13/10 10:53

    German President visits the ancient site of Messene in Greece

  80. 12/10 21:26

    Spain’s National Day marked by Spanish Embassy in Athens

  81. 12/10 19:20

    Global Geoparks Exhibition “Gaia Memories” at Eugenides Foundation until May

  82. 12/10 17:46

    Russian Gastronomic Week in Cape Sounio Grecotel near Athens

  83. 12/10 16:43

    Brave German cycles from Oslo to northern Greek city of Thessaloniki

  84. 12/10 15:49

    Greek beer from Paros in world’s top-6 at Great Taste Awards

  85. 12/10 15:45

    World Travel & Tourism Council president Guevara praises Greece

  86. 12/10 15:11

    Important new finds discovered at Akrotiri prehistoric settlement on Santorini island

  87. 12/10 15:04

    Deep sea off Kalamata field test site for Shell Ocean Discovery XPRIZE

  88. 12/10 14:57

    Animal Tourism: Rare giant carnivorus bug discovered in Central Greece

  89. 12/10 14:48

    Greek priest wins Best European Citizen Award for 2018 for children charity

  90. 12/10 14:17

    Greek State liberalizes merger rules for corporations

  91. 12/10 13:15

    Space tourism: Virgin Galactic to test first test flights in space (video)

  92. 12/10 13:05

    Greek Americans conquer Kilimanjaro, the highest peak in Africa

  93. 12/10 12:11

    Steinmeier: Greece and Germany making a new beginning

  94. 12/10 12:00

    ESM chief downplays banking comparisons between Italy and Greece

  95. 12/10 11:09

    BBC releases trailer of “The Little Drummer Girl“ shot in Greece (video)

  96. 12/10 11:00

    59th Thessaloniki film festival pays tribute to Greek queer cinema

  97. 12/10 10:51

    Water sports: Greek rowers clinch gold at Youth Olympic Games (videos)

  98. 11/10 22:40

    Polis² and This Is Athens revitalize central Plateia Theatrou

  99. 11/10 21:57

    Truffle hunting in the magical forests of Meteora

  100. 11/10 21:52

    Cyprus lures filmmakers with year-long sunshine and 35% rebate