TUI: 45% of travellers still to book summer holidays amid geopolitical uncertainty

Travel organization TUI reports that consumers are delaying summer holiday bookings amid uncertainty linked to the war in the Middle East. As a result, hotels and resorts are less fully booked than a year ago. The company says around 45 percent of travellers have yet to secure their summer holiday plans.

The German travel company is reporting growing demand for destinations in the western Mediterranean and expects Spain and Greece to be the top choices for travellers this summer.

TUI saw strong demand for its cruise offerings in the first half of its financial year. However, occupancy at TUI Cruises was lower year-on-year because two ships remained stuck in the Persian Gulf until mid-April. Outside those disruptions, the cruise fleet reached a 98 percent occupancy rate.

The conflict in the Middle East resulted in €40 million in extra costs. Fuel prices have increased significantly due to the blockade of the Strait of Hormuz.

TUI narrowed its second-quarter loss by nearly €20 million to just over €188 million. CEO Sebastian Ebel said the company is focusing on “distinctive products with strong brands.” TUI’s holiday segment recorded a €176 million profit in the second quarter, while its airline division cut losses by 7 percent to more than €339 million.

“The very strong results give us confidence for the second half of the year. However, due to geopolitical challenges and dynamic market conditions, this will require a great deal of commitment and flexibility,” predicts Ebel. He also says he sees many opportunities for AI in the travel and tourism industry.