More than any other market, nearly two-thirds of Tui’s summer holidays for British consumers are sold.
Three months ago, prices at the largest holiday company in the world were “noticeably lower” than they are now.
Tui’s average selling price has increased by 5%, which the company describes as “significantly higher” than the 2% increase reported for the first three months of its fiscal year 2023.
According to the German-British company’s half-year results, the average selling price is up 8% compared to the previous season on a like-for-like basis.
The most recent price increase “illustrates customers’ continued willingness to prioritize spending on travel and experiences,” according to the company.
Compared to the summer of 2019 before the pandemic, the average price of a vacation increased by 26%.
The booking volume for summer vacations “remains strong” despite the increase, exceeding 2019 levels. According to the results, nearly two-thirds (64%) of UK vacations are sold, more than any other market.
Spain, Greece, and Turkey are the most popular summer travel destinations.
Summer 2019 appointments are up 13% from the previous year and have nearly reached pre-pandemic levels at 96%. However, in the United Kingdom, sales have outpaced 2019 and are 10% higher than the year before the pandemic.
The company has a ways to go before regaining peak pandemic sales. In the second quarter, there were 600,000 more customers than the previous year, bringing the total to 2,400,000, which represented 88% of 2019 customer levels.
The chief executive officer of Tui stated that long-distance travel is still feeble following the pandemic.
The travel company that owns hotels, aircraft, and cruise ships reported a 52% increase in revenue to €3.2bn (£2.7bn) in the three months leading up to April 1st, indicating that winter travel met expectations.
Quarters are typically loss-making, but the quarterly deficit decreased €88 million to €242 million (£210 million).
