Tui’s earning soar by a third – London Business News | Londonlovesbusiness.com

Tui’s earnings have risen by a third due to soaring demand for holidays, but the travel company are expecting growth to slow.

This comes as people are being more cost-conscious amid the cost of living and travellers are seeking cheaper holiday destinations.

Tui left the stock market in London and is now focussed on Frankfurt revealed in the year to 30 September the German group posted an increase of 33% in underlying pre-tax profits to £1.1 billion as revenues rose by 12%.

In the new year Tui is expecting in the new financial year more growth, although this will be at a slower pace with revenues predicted to rise by 5% and 10% in underlying pre-tax earning are expected to rise by 7% to 10%.

“This is against the background of a higher inflationary environment and our expectation that the first half of the year will be impacted by a higher seasonality for investment ahead of the summer and the shift of Easter holidays into the third quarter,” it said.

Chief executive Sebastian Ebel said travellers will still spend money on holidays despite cost pressures.

“There’s a shift, especially in the family segment, to cheaper destinations,” Ebel said.