TUI Travel lifted by late bookings
The company has also said that trading for Winter 2010/11 has further strengthened across all source markets and Summer 2011 trading has started well in the UK and Nordics (the two source markets currently on sale).
Net debt is expected to be lower than previous guidance due to a strong working capital performance following improved recent trading trends and increased management focus on cash.
Peter Long, Chief Executive of TUI Travel PLC, commented, “Since our last update, we have performed well in the late market for Summer 2010 and the majority of our programmes are now almost fully sold. This shows that demand for our holidays remains healthy despite the previously highlighted shift towards a later booking trend in the UK. The failure of a number of smaller tour operators and airlines has once again emphasised to holiday makers the security that travelling with a leading tour operator brings. We have benefited from this flight to quality as well as the return to more normal weather conditions across Northern Europe after the earlier period of good weather.
The positive trading trends for future seasons have continued. Booking activity has accelerated across all source markets in recent weeks for Winter 2010/11 and trading for Summer 2011 has started well. Demand is particularly strong for our differentiated products, validating our strategy of offering unique holiday experiences. However, whilst these trends are encouraging, at this relatively early point in the booking cycle we retain our prudent view on the outlook for the coming financial year.
We continue to believe that our strategy of focusing on differentiated products, turning around underperforming businesses and growth initiatives will enable us to achieve our medium term margin roadmap. We are also continuing to review areas of our cost base to increase our competitiveness and further underpin delivery of our targets".
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