TUI Travel announces capacity cuts for summer of 2009

The largest travel operator in Europe, TUI Travel, has said that it will cut UK capacity for next summer by 16 per cent, in an effort to counteract weaker than expected early bookings. It related, however, that the vast majority of travel consumers see their main annual holiday break as a requirement and not a luxury.

The group, which owns Thomson and First Choice, stressed that the capacity reduction should make it possible to increase selling prices by approximately nine per cent. The rise would more than cover inflation, and TUI Travel is remaining confident about the future.

Chief executive Peter Long reported full-year results that were better than had been expected, saying: “We’re happy with our current trading position. It is clear that our customers don’t wish to forgo their main holidays and with the steps we have taken on capacity we are confident we will not be left with a lot of unsold holidays.”

Long said that he based his confidence on 25 years of experience in tour operations, during which time the industry has dealt “several shocks,” that included two different recessions, the September 11 attacks and the SARS outbreak in Asia.

The consolidation last year of the ‘big four’ tour companies was another reason for optimism, with TUI of Germany merging its travel unit with First Choice and Thomas Cook taking over MyTravel.

Thanks to business.timesonline.co.uk for the above quotes, for more information on this article please visit their website.

www.tuitravelplc.com