Travel giant Tui cashes in as holidaymakers book up trips to the winter sun

Travel giant Tui is cashing in as holidaymakers turn their attention to some winter sun.

The group, Europe’s biggest tour operator, said a steady summer has been followed by a ‘positive start’ to the winter season as families book trips for later in the year.

The company has taken 1.8million bookings for winter so far – up 1pc on the same period last year – despite concerns over the cost of living and geopolitical tensions.

The Canaries, Egypt, Spain and Cape Verde are the most popular short-haul destinations to date, Tui said, while in long-haul, Thailand has seen the highest growth.

The firm said Mexico, the Dominican Republic and Jamaica ‘remain key winter escapes for our customers’.

Taking off: Tui has taken 1.8million winter booking so far

Bookings among British families are at the same level as last year but they are up 1pc in Germany, Tui’s other key market.

Tui said it is ‘on track’ to deliver the improved targets set in August, when it raised its earnings forecasts as its hotel and resorts as well as its cruises arm performed well.

‘The appeal of our cruise product proposition in both the UK and German markets remains strong,’ said Tui.

For the winter season, Tui’s cruise offerings include trips to the Canaries, the Caribbean, Indian Ocean, the Baltic Sea, Northern Europe and a semi-circumnavigation of Antarctica.

Tui shares, which are listed in Frankfurt, rose more than 3pc but remain down around 2pc this year.

Julie Palmer, a partner at Begbies Traynor, said: ‘Europe’s largest tour operator has continued to demonstrate its resilience in a fiercely competitive market, with Tui’s cruises and holiday experiences once again driving performance. 

‘In the face of some pretty intense headwinds, Tui is bucking the trend with the latest results revealing steady momentum across the business.’

‘Shares are still down year-to-date, but recent momentum reflects renewed belief in the travel operator’s ability to navigate the current headwinds. 

‘Airline disruption, geopolitical tensions and shifting consumer behaviour will keep conditions challenging, but Tui’s scale, the strength of its brand and increasingly diversified portfolio will leave it better placed than most to maintain momentum and carry that through the typically weaker colder months.’