CEO Fritz Joussen: “Holidays are at the top of Europeans' wish lists after the months of the pandemic. Bookings and booking trends show: Holidays in the Mediterranean, in the Aegean and on a ship will be possible again for many families in the coming weeks. Currently, around 70 percent of those surveyed want to go on holiday. England in particular offers potential when new travel corridors to southern Europe open there too in the next few weeks. Freedom and responsibility, testing, vaccination and effective hygiene concepts are the basis for a safe holiday in 2021. European destinations, particularly Greece, Canaries and Balearic Islands, are ahead in preference.”
Holidays are getting closer for Europeans. Around 70 percent have already booked or want to do so2. In a pilot project by TUI and RIU with the government of the Netherlands, 60,000 holidaymakers registered in a single day for the 180 places available. This shows the relevance of holidays and the anticipation of returning to more normality and freedom to travel in these weeks. Many European countries have made great progress in coping with the pandemic. The travel experiences of the last weeks show that the guests take distance and hygiene rules seriously and behave very responsibly.
Fritz Joussen, TUI Group CEO: “The prospects for early summer 2021 make me optimistic for tourism and for TUI. They are significantly better than in the first pandemic year, 2020. Scientists and doctors know the virus, there are vaccines from several manufacturers, the vaccination campaigns are working everywhere in Europe and rapid tests are now available everywhere. Much has been achieved in the last 14 months through government programmes and the discipline of us all. The entire TUI ecosystem from consultation and booking, to flight, transport and hotel is now even more focused on quality, comfort and safety. Incidence levels in key destinations are falling steadily. The Balearic and Canary Islands are well below 50 new cases a day. The opening of Mallorca over the Easter holidays with thousands of TUI guests has shown that safe and relaxing holidays are possible in times of the pandemic. TUI welcomes the statements by the German Chancellor and the German government that holidays in Europe will be possible for both vaccinated and unvaccinated people. This now gives families security and reliability when booking and supports local tourism and also the countries of Southern Europe. We are now at the beginning of the expected restart. The anticipation is palpable, these are opportunities for tourism and for TUI.”
TUI has used the first half of the 2021 financial year against the backdrop of continued pan-European lockdowns and ongoing massive travel restrictions to continue to massively drive forward its transformation and realignment. TUI will emerge from this crisis stronger, more digital and more efficient, while at the same time expanding quality and service through more digital services.
Key figures H1 2021: Loss contained through consistent cost discipline and continued realignment – cash outflow at stable level
In the reporting period, the Group continued its consistent cost discipline. The realignment, with a focus on transformation and Group-wide digitalisation, also continued. The monthly cash outflow remained at a stable level, particularly in the second financial quarter (January to March 2021), averaging around €300 million.
Adjusted EBIT was thus limited to -1.3 billion euros in the reporting period (H1 2020 less affected by the pandemic: -795 million euros). As the massive travel restrictions continued in the reporting period, sales reached 716 million euros (previous year: 6.6 billion euros). Unlike in the 2020 financial year, this time all six months of the first half of the 2021 financial year fall under the full pandemic restrictions.
Investors support TUI strategy: Twice oversubscribed convertible bond reaches volume of 400 million euros
Following the successful rights issue at the beginning of the year, the Group completed additional financing in the capital market in April 2021. The almost doubly oversubscribed convertible bond issue reached a volume of 400 million euros and is intended in particular to refinance loans from the state Corona stabilisation packages. Joussen: “The successful placement of the bond was an important first step in addressing our capital structure. A good summer season will help with refinancing measures. The government support for the Group helps us, but these are interest-bearing loans, not gifts. We take a clear signal from the capital market: tourism remains a growth market internationally and investors trust our business model and support TUI's strategy. The realignment of the Group, with strict cost discipline and an efficiency programme, is underway, and we have accelerated the transformation and digitalisation. Tourism will recover and TUI will be more digital, leaner and more efficient after the pandemic.”
Summer 2021: Bookings remain high at 2.6 million, strong demand growth in recent weeks – average prices +22 per cent
Demand for summer holidays continues at a high level. TUI has recorded a total of 2.6 million bookings for summer 2021 – 69 per cent lower than at the comparable point in time for summer 2019. Average prices are 22 per cent higher than for summer 2019 due to the high proportion of all-inclusive packages in current bookings. Capacity for the core months of the 2021 summer programme remains equivalent to around 75 per cent of the 2019 summer programme, and the pick-up in demand is clearly evident in recent weeks, with new bookings doubling since April with clearer and more positive signs that a restart of tourism is imminent. Bookings for summer 2022, are also showing a good trend, with UK bookings up 109 per cent since end of March 2021.
TUI travel remains the safest form of travel in the pandemic – incidence value of <1 per 100,000 guests since first relaunch in summer 2020
The package tour continues to play an important role in the pandemic. It guarantees high hygiene and safety standards across all stages of the travel experience, thus enabling responsible travel, even in times of the pandemic. This is also confirmed by the incidence of corona at TUI since the outbreak of the pandemic: Since the first relaunch in summer, TUI has facilitated holidays for around 2.7 million guests. An average 7-day incidence of <1 was observed per 100,000 guests (494 registered COVID-19 cases).
Image Credit: © TUI Group
The most interesting news
Green Hotel investments to restart tourism
Destination Capital (DC) has signed a collaborative arrangement with the World Tourism Organization (UNWTO) of the United Nations to support the rejuvenation of the hotel industry.
Saudi Arabia to allow visits by fully vaccinated tourists as of August
Tourism Ministry says Kingdom will lift suspension of entry for tourist visa holders after COVID closure.
Cambodia locks down Thailand border areas over Delta variant fears
14-day lockdown in border provinces, nationwide night curfew to start Thursday midnight.
France denounces UK quarantine rules as ‘discriminatory’
UK’s decision to keep quarantine measures for travelers from France is ‘incomprehensible’, says French official.
It is a story of a town; from an exile place to jet-set resort
There are places where tourism is done right.
4Y134 Airborne: Eurowings Discover inaugural flight takes off
Eurowings Discover inaugural flight departed Frankfurt this evening, heading to Mombasa with onward flight to Zanzibar.
Qatar Airways Engages with IATA on Environmental Sustainability Training
Qatar Airways has selected the Certificate of Advanced Studies in Environmental Sustainability in Aviation Program offered in partnership between the International Air Transport Association (IATA) and the University of Geneva.
Spain’s 5th COVID-19 wave takes toll on hospitals and tourism
US advised even vaccinated people to avoid travel to Spain due to its high rate of contagion.
EU nations mull over boosted restrictions as COVID-19 cases spike
Despite intensive vaccination, Delta variant poses serious challenges to EU countries.
South Africa further eases COVID lockdown
Country has administered more than 6.3M vaccines, with over 10% of population receiving a vaccine dose.
Bedsonline launches native language customer service support in key markets across Europe
Bedsonline, the leading global provider of online accommodation and ancillary products exclusively for travel agents, has today launched a series of significant customer service improvements in key markets across Europe, including the provision of 24
Tourism picks up in Kenya amid COVID-19
Germany’s flag carrier Lufthansa starts direct flights to Kenya’s coastal town of Mombasa.
Emirates helps last-minute planners take advantage of summer travel
Airline flying close to 40 popular quarantine-free destinations.
8,000-year-old mound in SE Turkey added to UNESCO World Heritage List
With addition of Arslantepe in Malatya, the number of sites from Turkey in UNESCO’s list grows to 19.
IATA: ‘European Commission Slots Decision Out of Touch with Reality’
The Decision Damages Sustainability and Industry Recovery.
'Hagia Sophia and Chora mosques are property of Turkey'
Turkey meticulously protecting monuments in metropolis Istanbul, says Turkish Foreign Ministry.
White House: International travel restrictions to remain in place
Rising Delta variant cases keeping White House wary.
Vaccinated EU and US travelers set to skip England quarantine
Loosening of international travel restrictions will allow millions to enter UK, say officials.
TUI extends 4.7 billion euros credit lines with banks until summer 2024
TUI, 19 international banks and KfW successfully agree to extend the maturity of revolving credit facilities (RCF) totaling 4.7 billion euros until summer 2024.
Kayseri added to UNESCO Creative Cities Network
Central Turkish province with its rich cuisine entered network in field of gastronomy, says local official.