TUI Travel has announced it is on track to meet itsprofit target this year after late bookings increased its summer performance. Inits latest trading update the tour operator, which runs under Thomson and FirstChoice, said its summer programme was almost fully sold with load factors flatcompared to last year.
Its total sales in the UK had increased 3% althoughbookings had dropped 7% since its previous statement in August. Looking aheadto the winter season, TUI’s sales had decreased 7% against the same decrease incapacity, specifically in North Africa.
“We are pleasedwith our performance in the lates market for summer 2011 and most of ourprogrammes are now almost fully sold. We remain confident that the full yearresults will be in line with our expectations,” said Peter Long, chiefexecutive of TUI Travel. “Trading for Winter 2011/12 is satisfactory overall,but we are anticipating a slow recovery in trading to Egypt and Tunisia, andhave managed our capacity accordingly. Our focus remains on differentiatedproduct, maintaining margins, prudent capacity management, and delivering ourturnaround and cost savings programme”.
For 2012 the company has sold 10% ofits holidays, in line with last year, and bookings are down 11% against a 4%drop in capacity. The average selling price for 2012 has increased 10% but a 5%cost inflation will also be added to prices “to recover these input costs inthis competitive market”.