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. 22/01 21:52

    Eurogroup president Mario Centeno: No more programmes for Greece

  2. 22/01 21:45

    Arrivals to Greece by FYROM citizens fall since record-breaking year in 2015

  3. 22/01 21:41

    4th Delphi Economic Forum to take place between February 28 and March 3

  4. 22/01 21:34

    Stefanos Tsitsipas: I very much want to beat Nadal and I feel I can do it

  5. 22/01 21:25

    Ten Oscar nominations for Greek director Lanthimos' film 'The Favourite'

  6. 22/01 21:08

    Greek tennis star Tsitsipas qualifies for the Australian Open semifinals

  7. 22/01 20:21

    Greek start-up purchased by Chinese giant Alibaba for €90 million

  8. 22/01 20:17

    IATA: Current flights protected but future growth at risk from No Deal Brexit

  9. 22/01 20:11

    UNWTO αctivities at 39th International Tourism Trade Fair in Madrid FITUR 2019

  10. 22/01 20:07

    Scoot expands Athens service with more flights in summer 2019

  11. 22/01 19:44

    Standards and Poor’s upgrades Greek ratings from B to B+

  12. 22/01 19:26

    Infographic: Greece has among highest rates of overqualified foreign workers

  13. 22/01 18:35

    Ancient Greek sculptures thesis clinches U.S. National Archaeological Award

  14. 22/01 18:30

    Alexandroupolis and Kavala ports top priorities for partial privatization

  15. 22/01 17:18

    Major restructuring plan for Greek Post under examination

  16. 22/01 16:04

    “Photos of Drama and its wonderful world” at Pireos Benaki Museum

  17. 22/01 14:50

    Video installation of Parthenon of Books among exhibits at LA Art Show

  18. 22/01 13:41

    Eurogroup be rule over return €600 million in bond yields to Greece

  19. 22/01 12:20

    Greece's first vertical garden on public building in Thessaloniki (video)

  20. 22/01 11:53

    Labor Ministry: 14,000 more jobs created in Greece during 2018

  21. 22/01 10:36

    “Voyage of Hellenism to Japan” show at Byzantine Museum in Athens

  22. 22/01 01:25

    Economist report: Turkey ranks first in the world in jailed journalists

  23. 22/01 01:10

    UNWTO: International tourist arrivals reach 1.4 billion two years ahead of forecasts

  24. 22/01 00:25

    The Telegraph: Four Greek hotels among 50 best boutique hotels in Europe

  25. 22/01 00:09

    ONCE and UNWTO promote employment of persons with disabilities in tourism

  26. 22/01 00:04

    Rita Wilson to perform concert in Athens, Greece during summer of 2019

  27. 21/01 23:17

    Tesla’s powerpacks could update Greece’s electric grid and reach islands

  28. 21/01 22:15

    Creditors arrive in Athens for post-programme evaluation

  29. 21/01 20:02

    Greek President visits 'Crete. Emerging Cities' show at Cycladic Art Museum

  30. 21/01 19:43

    Air France connects Cretan port of Heraklion in Greece with Paris first time

  31. 21/01 18:54

    Top 10-year challenge as 10-year-old Tsitsipas talks about his idol Federer (video)

  32. 21/01 15:54

    Stunning images of ice-covered forest in northern Greece (photos)

  33. 21/01 15:48

    Piraeus port expects increase in cruise ship arrivals and home porting in 2019

  34. 21/01 14:42

    Reuters: EU reports crime risks from Malta and Cyprus schemes to sell passports

  35. 21/01 14:35

    Greece’s winter resorts record high occupancy in Christmas holiday season

  36. 21/01 13:25

    Cypriot director wins Emerging Greeks Competition award at Hellas Filmbox Berlin

  37. 21/01 12:07

    GNTO Benelux head: Greece has good prospects to attract more tourists

  38. 21/01 11:49

    Emirates launches entertainment playlist syncing ahead of travel

  39. 21/01 10:57

    7,7% growth in tourist arrivals to Cyprus during December 2018

  40. 20/01 22:56

    Tennis Tourism: Greek star Tsitsipas beats Federer at Australian Open

  41. 20/01 22:40

    Greek shipping interests to recruit more young people from Greece

  42. 20/01 22:33

    Young Greek doctor climbs Mt. Kilimanjaro to raise money for charity

  43. 20/01 22:04

    Greek merchant shipping fleet grows during November 2018

  44. 20/01 20:48

    Wellness Tourism to reach $1 trillion turnover by 2020 - Five top trends for 2019

  45. 20/01 19:18

    Hellenic Society of Constantinople honors UCLA Hellenic Studies Director

  46. 20/01 17:11

    Greece exhumes decades-old ship graveyard near Piraeus port (video)

  47. 20/01 17:01

    Survey: Investment in Greek industry expected to keep growing

  48. 20/01 15:55

    Cypriot and Jewish community organizations cultural event in Astoria (video)

  49. 20/01 13:49

    Spinalonga: Countdown to inscription on UNESCO World Heritage List

  50. 20/01 11:13

    Leadership 100 to mark 35 years of service in USA in February

  51. 19/01 20:50

    Berlin Travel Festival: Globetrotters meet travel industry trendsetters at ITB 2019

  52. 19/01 20:43

    Spectacular snow-covered scenery in Greece (video)

  53. 19/01 20:39

    Trips abroad by Cyprus residents grow by 10.2% in December 2018

  54. 19/01 20:27

    Europarliament report: Overtourism hurts iconic Greek island of Santorini

  55. 19/01 20:16

    Thematic Tourism: Hike and mountainbike in Greece with Alexander the Great

  56. 19/01 11:43

    'Cyprus model' studied by Greek government for residence protection

  57. 18/01 20:01

    EBRD financing in Greece rises to €846 million during 2018

  58. 18/01 14:07

    Tax incentives for hiring young or long-term unemployed people in Greece

  59. 18/01 01:25

    Rafael Nadal set to open Tennis Centre in Greece

  60. 18/01 01:13

    Researchers decipher 'DNA' code of iconic Greek feta cheese

  61. 17/01 23:25

    Beer sales attain new record in Cyprus thanks to tourism

  62. 17/01 23:00

    Fitch expects stagnation in real estate property prices in Greece until 2020

  63. 17/01 20:35

    Spokesperson: IMF's presence in Greece next week 'purely advisory'

  64. 17/01 20:05

    Cyprus tourist arrivals hit new high in 2018

  65. 17/01 18:21

    Full length documentary to feature "symbol of Greek immigration" Astoria

  66. 17/01 14:10

    Flashback: When Princess Diana flew to Greece for “dear friend” (video)

  67. 17/01 12:19

    OECD: High taxes in Greece an obstacle to economic growth

  68. 17/01 11:53

    Greek tennis star Tsitsipas honored with souvlaki named after him

  69. 17/01 10:14

    Supermarket sales grow by 2.2% in Greece during 2018

  70. 17/01 03:13

    EU Commissioner for Economic and Financial Affairs Pierre Moscovici visits Athens

  71. 17/01 03:08

    Expedia: A Greek island became top trend for Americans in 2018

  72. 17/01 01:02

    Visitors to museums and ancient sites in Greece rise in January-September

  73. 16/01 23:05

    Cyprus government satisfied with Paralimni Marina project progress

  74. 16/01 22:57

    Nearly 100 million Google searches for tourism in Cyprus annually

  75. 16/01 22:54

    Bank of Greece chief calls for rapid implementation of plan to reduce NPLs

  76. 16/01 21:33

    Public Power Corporation to raise electricity bills in Greece

  77. 16/01 20:45

    Emirates adds second daily Athens-Dubai flight after March 31, 2019

  78. 16/01 20:41

    Ryanair cancels direct flights from Athens to Chania, Rhodes and Mykonos

  79. 16/01 20:33

    First Athens Fashion Film Festival to take place at Megaron Concert Hall in February

  80. 16/01 20:04

    Culture Tourism: Calabrian Greek, a language on the brink of extinction (video)

  81. 16/01 19:10

    Promotion of Greek-Indian commercial relations discussed in Athens meeting

  82. 16/01 19:03

    Hellas Filmbox Berlin festival on January 16-20 for 4th consecutive year

  83. 16/01 18:06

    Greek artist Dimitris Papaioannou’s "The Great Tamer" makes U.S. debut in L.A.

  84. 16/01 16:45

    Health Tourism: Why Greek coffee holds the key to longevity

  85. 16/01 15:50

    Ferry services returned back to normal in Greece on Wednesday

  86. 16/01 14:41

    International Summer School Cavafy 2019 in Athens: The poet's orientations

  87. 16/01 12:19

    TEE and OBI invite inventors to new electronic platform in Greece

  88. 16/01 10:15

    Construction figures head higher in Greece during October

  89. 16/01 03:17

    South Australia hosts largest-ever Delphi Bank Semaphore Greek Festival

  90. 16/01 03:14

    Greece and Expertise France in outstanding cooperation over modernization

  91. 16/01 02:44

    Labor unions call strike in Greek public sector on Thursday

  92. 15/01 23:33

    Six contracts for Patra - Pyrgos Motorway to be passed soon by Greek Parliament

  93. 15/01 22:10

    Cyprus Tourism Minister ooffers support for Famagusta district coastal resorts

  94. 15/01 21:54

    “Natural Gas Forum in the Eastern Mediterranean” promotes ties in the region

  95. 15/01 20:04

    Sports Tourism: Karditsa, one of Greece’s most bike-friendly cities

  96. 15/01 20:00

    Series of events in the USA to further promote Greek tourism

  97. 15/01 19:50

    US study unveils reversal of decades of anti-Americanism in Greece

  98. 15/01 18:56

    Minister: Cyprus needs to diversify its tourist product

  99. 15/01 16:50

    Cluventure Travel organizes special trips to destinations including Greece

  100. 15/01 14:41

    SNF announces upcoming Summer Nostos Festival in Athens on June 23-30