TUI Travel reports increased demand

www.tuitravelplc.com

In the last three months of 2008, TUI Travel reduced its losses to under £35 million, as compared with a deficit of £63 million for the same quarter in the previous year – an improvement of 45 per cent.

The travel company reported that bookings for both winter and summer 2009 have increased since its early February update.

TUI did note, however, that the trading environment was still “challenging”, even with an increase in demand over recent weeks.

“We continue to expect a flatter booking profile as some consumers continue to delay purchases due to uncertainty around their personal circumstances,” the company stated.

Its winter programmes are nearly completed sold, on strong trading during the late booking period, the company added.

Summer bookings by UK customers have improved, from being down by 18 per cent to only seven per cent down. Average selling prices in the UK have risen by 10 per cent and the 45 per cent load factor is only one point lower than last year.

Reductions in capacity have meant 14 per cent less content to sell for the summer season from the UK. UK overall capacity has been reduced by 17 per cent, “and scope exists to reduce this further if necessary.”

Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.

www.tuitravelplc.com