Thomas Cook: Greece again among summer season winners with strong demand for 2018
Thomas Cook, Europe’s second-largest tour operator announced a group-wide 13% rise in bookings for this summer (as of May 5), driven by particularly strong demand for Turkey, Greece and Egypt. Bookings are also higher for smaller destinations such as Croatia and Italy, as well as Tunisia which is making a comeback. But bookings for the Spanish islands are down after Cook decided to cut capacity for the summer due to strong competition and pressure on margins.
According to the following report by fvw.com, Thomas Cook Group presented lower half-year losses and good bookings for summer 2018, including in Germany, driven by strong demand for the Eastern Mediterranean and North Africa.
Regarding source markets, Continental Europe bookings for summer 2018 are up 2%, with good growth in Germany (+4%), France (+15%) and Belgium (+8%), and average prices 4% higher. Stefanie Berk, head of Central Europe & East, commented: “Demand has risen strongly especially for Turkey, Egypt, Tunisia and Morocco. Greece is again one of the season’s winners, and bookings are also significantly stronger for Italy and Austria than last year.”
Northern Europe is growing well, with bookings up 7% and average selling price up 5%. UK tour operator bookings are up 4%, with pricing up 6% despite pressure on margins. The Group Airline is also heading for a strong summer, with bookings up by 18% and average selling prices 2% higher, after a 10% capacity rise and strong demand for short-haul capacity.
During the six months ending March 2018, Thomas Cook increased revenue by 5% to £3,227 million, driven by growth to Egypt and long-haul destinations. The seasonal underlying EBIT loss was slightly reduced to £169 million, mostly due to better airline results, although the reported operating loss increased to £214 million due to separate financial charges. The seasonal net loss was reduced to £255 million.
The winter 2017/18 programme closed in accordance to expectations. Overall Group bookings increased by 10%, with strong demand for the Canaries, Egypt and Turkey. Average selling prices were broadly flat, reflecting a shift in the mix from long-haul to short/medium-haul destinations.
Thomas Cook's Continental Europe tour operating business
The Continental Europe tour operating business had a good half-year, increasing revenues to £1,256 million and reducing the seasonal loss slightly to £49 million. “Demand for most destinations has been robust, with growth to Egypt, Greece and Tunisia helping to offset declines to Mexico and the Caribbean following Hurricane Irma last autumn,” Cook commented.
Nevertheless, the German business saw its seasonal underlying loss increase despite growing revenues due to weaker margins to long-haul destinations (partly due to a disadvantageous hedging position for the US Dollar) and strong market competition, especially to Egypt. Elsewhere, there were better results in Belgium, France and Russia, and stable results in the Netherlands and Eastern Europe. The Northern Europe tour operating business performed very well in the first half, achieving significant revenue growth to £614 million and a £9 million increase in underlying EBIT to £41 million.
On the contrary, the UK increased half-year revenues to £528 million but the seasonal loss deepened to £77 million, mostly due to weaker margins to the Canaries, the company’s top winter destination, caused by strong hotel cost inflation, together with a weaker Sterling and increased levels of market competition. “As a consequence, while customer demand remains strong, our UK business has not fully passed on these significant inflationary cost increases through higher selling prices.” In response, Cook is shifting capacity towards the Eastern Mediterranean, closing British travel agencies and taking other cost-saving measures.
Thomas Cook Group Airlines recorded a strong half-year, profiting from higher capacity demand from other tour operators following the collapse of Monarch and Air Berlin/Niki. Revenue increased by 9% to £1,313 million on a like-for-like basis, passenger numbers were up by 11% to 6.6 million, while yields increased by 1% and 3% in long-haul and short/medium-haul respectively. Underlying EBIT improved by £20 million to a seasonal loss of £59 million due to the higher yields and better results from Condor.
Thomas Cook CEO on results and current trading
Commenting on the results and current trading, CEO Peter Fankhauser noted: "Thomas Cook has had a good first six months of the year, delivering improved financial results combined with tangible strategic progress. The work we've done in the past two years to improve customers' experience of our flights and our holidays is bearing fruit with revenue growth of 5%, and a positive booking position for the summer.
"The improvements in customer satisfaction have come from our focus on fewer, better hotels and our holiday programme for Summer 2018 is in great shape. Two-thirds of our customers tell us they want to personalise their holidays and we are innovating to satisfy this demand. This includes the successful introduction of 'Choose Your Room' across 300 hotels for the summer and, more recently, 'Choose Your Favourite Sunbed' which we are rolling out to 50 hotels.” Thomas Cook said it has so far taken 13,500 ‘Choose Your Room’ bookings while 50% of all available sunbeds have already been booked.
Fankhauser added: "Customer demand for this summer is good in all our markets, particularly in our Nordic region. We continue to experience margin pressure in the UK tour operator due to a combination of hotel cost inflation in Spain, currency impact and capacity increases in the market. We have taken action to help mitigate this pressure, including taking out holiday capacity from Spain and moving it to the Eastern Mediterranean.
"Our Group Airline performed particularly well in the first half. Condor delivered a strong turnaround, and has benefitted from our ability to provide a reliable and high-quality service during a period of disruption and consolidation in the German aviation sector. Our booking position for the summer is strong, and bookings are well in line with our capacity growth of 10% to an expanded range of destinations, including 70 new routes across the group.”
Read more at fvw.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
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
13/03 20:11
Prices of basic lenten products either lower or equal to last year's in Greece
13/03 19:15
US Ambassador to Athens: Greece secures NATO readiness via Alexandroupolis
13/03 17:19
13/03 12:26
Greece shows new costumes for revamped Olympic Flame-lighting ceremony
12/03 22:46
Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’
12/03 21:38
The President of the Hellenic Republic to visit Slovakia on March 13-15
12/03 20:29
First afternoon surgeries in Greece kick off at Papageorgiou Hospital in Thessaloniki
11/03 23:58
Greek Foreign Minister: We stand behind Montenegro's European perspective
11/03 23:47
Visa Express for Turkish citizens to commence on five Greek islands in March
11/03 19:40
11/03 18:49
Microsoft Data Center construction kicks off in Spata next to Athens Airport
11/03 17:53
Dodecanese Federation marked 76th Anniversary of Unification with Greece
09/03 22:23
08/03 14:27
Prime Minister: Radical change in Greek education and a brave reform for growth
08/03 14:24
Traffic restrictions expected in Athens mid-morning to evening on Friday due to protests
08/03 14:24
Applications to out-of-court settlement more than doubled in Greece in February
08/03 13:18
Metro station 'Maniatika' near Piraeus Port to be closed on Saturday and Sunday
07/03 14:12
Athens wins World Travel Award 2024 as the top city-break destination in Europe
06/03 22:51
WTTC data show Greece and Portugal lead league for growth in tourist arrivals
06/03 20:28
Greek Tourism Minister at ITB: 2024 will be another excellent year for sector
06/03 19:47
Greek Foreign Minister to meet UAE Minister of Industry and Technology on Friday
06/03 18:43
European Union actions of 274m euros to support cultural heritage in Greece
06/03 16:37
'Odontotos' rack railway temporarily stopped until landslides issue is resolved
06/03 14:40
Minister: Bringing about the return of Greeks abroad 'a moral duty'
05/03 14:28
Archdiocese of America Eparchial Synod to meet on March 14-17 in Florida
05/03 14:21
05/03 14:11
ITB BERLIN 2024 opens with excellent bookings after global rise in travel in 2023
05/03 12:24
Greek PM at Athens supermarket: Consumers 'can already see lower prices on the shelf'
04/03 22:02
Greek Health Minister: Afternoon surgeries at state hospitals to begin shortly
04/03 21:47
Holy Cross Greek Orthodox Whitestone Community marks 49th Anniversary
04/03 20:27
Labor chief: Greece to train 500,000 workers in digital, green skills by 2025
04/03 19:44
Foreign Ministry to organize event on 'Women, Peace, and Security' on Friday
04/03 15:12
Athens Riviera | The summer experience with Athens as a background
29/02 22:54
Consumers to see price cuts up to 18.1% in 3,000 Greek supermarket products as of Friday
29/02 21:44
Greece and Germany set up Working Group on shipping cooperation
29/02 21:30
Wyndham Rewards’ Member Month offers 5 weeks of deals, discounts, and bonus points
29/02 21:03
Temple of Poseidon at Sounion near Athens to get new lighting system
29/02 21:02
29/02 20:47
Greece is represented by 60 firms at GULFOOD 2024 exhibition
29/02 19:58
Greek government gives 1+1 month extension for cash register-integrated POS terminals
29/02 19:49
Archangel Michael Church Dance Program shines at Folk Dance Festival in SF
29/02 15:39
'Renovate-rent' programme to be launched, Minister tells Greek Parliament
29/02 12:39
Rio-Antirrio ferry line in central Greece closed due to strong winds
28/02 21:34
Weather with heavy rain and storms in Greece as of Sunday night
28/02 17:31
CEO: The goal is for PPC to become a leading player in Southeast Europe
28/02 17:04
New Wyndham Hotels Market Managing Director of Central and Eastern Europe
28/02 12:21
Minister: Transactions with the Greek State will be further simplified in 2024
28/02 11:57
27/02 17:25
UN Tourism hails Saudi Arabia's historic milestone of 100 million tourists
27/02 15:00
Greek Prime Minister: Relations with Armenia can become even more productive
27/02 14:26
Wyndham: New growth cycle in Greece for the largest hotel chain franchise in the world
27/02 13:15
Price cuts of up to 15% in important product categories in Greece after March 1
27/02 12:46
Athens taxi drivers' protest rally in progress from Athinon avenue to Messogion
26/02 18:30
Annual Summit of Women Political Leaders (WPL) to be held in Athens in April
26/02 18:27
Culture Ministry: Schwartz Mansion in Ampelakia near Larisa to get new lighting
26/02 17:25
Greek president organizes reception for diplomats at Presidential Mansion
26/02 16:33
Trapped rack-railway passengers returned safely to Diakopto in Peloponnese
26/02 16:21
Public transport, ferry and taxi strikes in Athens on Wednesday
25/02 12:30
Greek island of Ikaria among the Blue Zones for Health Eating and Longevity
24/02 20:39
Greek PM meets Qatar Emir: Focus on bilateral cooperation and investments
24/02 18:25
Prescription cannabis for medicinal use legally available in Greece for the first time
24/02 17:19
MInister: The aim is to make fishing and fish-farming a key pillar of the economy
23/02 23:36
Greek Prime Minister arrives in Doha to be received by Sultan bin Saad Al Muraikhi
23/02 23:26
The Festival of Greek Dances takes place in the Metropolis of San Francisco
23/02 21:32
Revealing "70 Years of Friendship: Greece's photo journey through the Korean War"
23/02 17:15
16 Greek firms showcase at international fashion exhibitions in London
23/02 14:09
Flights to and from Heraklion airport in Crete resume on Saturday
22/02 18:15
Bill for non-state, non-profit universities being tabled in Greek Parliament on Thursday
22/02 18:13
Temporary residence for displaced Ukrainians extended in Greece to March 2025
22/02 18:10
American Hellenic Institute Golden Jubilee celebration Includes concert on April 12
22/02 18:09
Tourism Minister stresses importance of strong relationship of Greece with Serbia
22/02 17:58
Education protest rally ends and traffic resumes in Athens city center
21/02 19:47
Twistic and WeavAIR startups clinch the UN Tourism Hospitality Challenge
21/02 18:34
21/02 18:13
Traffic in Athens returning to normal after tractors depart from the Greek capital
21/02 13:01
Greek Tourism Minister in Belgrade for International Exhibition
21/02 00:55
Resilience through diversity and investments the aim of UN Tourism visit to Jamaica
20/02 23:38
Rally concludes with farmer tractors leaving Athens on Wednesday morning
20/02 20:43
Greek Prime Minister on official visit to India as of Wednesday
20/02 16:51
Minister: Greece wants to become India's gateway to the European Union
19/02 21:19
DEFEA Conference to be held at Stavros Niarchos Foundation in Athens on May 15
19/02 19:06
Traffic restrictions for farmers' rally in central Athens on Tuesday
19/02 18:11
Greece wins top tourist destination award at Grand Travel Awards in Sweden
19/02 14:23
Health Minister: Option of afternoon surgeries at public hospitals start in Greece
Greek-Canadian Diaspora to welcome Greek Prime Minister to Toronto
Greek Migration Minister visits refugee hosting facilities in Kavala, Drama and Serres
Greek Deputy Foreign Μinister meets her Slovenian counterpart in Athens
American Express report highlights Global Travel Trends during 2024
PM: More than 80 hospitals and 156 health centres being upgraded in Greece
US Ambassador to Athens: More flights from the United States to Greece and Thessaloniki
Greek Minister announces conference on defence ecosystem in Athens from Lithuania
President of Hellenic Republic meets Prime Minister of Slovakia in Bratislava
Four hospitals in Attica Region already organizing afternoon surgical procedures
Piraeus Port and Genoa Chambers of Commerce ink memorandum of cooperation
Greek Prime Minister to meet Bulgarian counterpart at Maximos Mansion
IOBE forecasts 2.4% growth and 10.5% unemployment in Greece during 2024
Greek retail sector turnover exceeds last year's figures with €4 billion in December
Epirotes Society of Philadelphia ‘Omonia’ organized 16th Annual ‘Tsipourovradia’
Impressive statue of Hercules unearthed in Philippi of Northern Greece
Development Minister: Supermarket food prices will start dropping in Greece in March
Athens International Airport makes spectacular debut on Athens Stock Exchange
Greek archaeologists discover ten ancient shipwrecks off Aegean island of Kasos
Golden Visa bonus for foreigners buying luxury homes at Ellinikon in Athens
PM at Axia discussion: Greece offering great investment opportunities in 2023
Bill lifting restrictions for Greeks voting from abroad greenlighted by majority vote
European Commission: Greece assumes command of Red Sea maritime operation
Greek tax service AADE launches updated website new section on expatriates
3-year stay and work permits approved for 30,000 undocumented migrants in Greece