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TUI Travel PLC  -  TT.   

Trading Update

Released 07:00 27-Mar-2013

RNS Number : 9523A
TUI Travel PLC
27 March 2013
 

 

27 March 2013

 

 

 

TUI Travel PLC

("TUI Travel")

 

Pre-Close Trading Update

 

STRONG TRADING CONTINUES - BUILT ON PROVEN STRATEGY

 

Prior to entering its close period ahead of reporting its Interim results for the six months ending 31 March 2013 on 10 May 2013, TUI Travel PLC announces the following update on current trading.

 

Highlights

 

·   

Modern Mainstream driving trading momentum

 


-     Winter 2012/13 programme ending strongly with improved margins and average selling prices across key source markets.

 


-     Very strong trading momentum continuing into Summer 2013:

 


-     UK and Nordic bookings up 9%, with higher margins.

 


-     Maintaining cumulative market share increase of four percentage points over the prior year in the UK (GFK Ascent).

 

·   

We continue to execute on our proven strategy


 

-     Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 12% and 9% year-on-year respectively for Summer 2013.

 


-     Direct distribution sales in the UK and Nordics for Summer 2013 of 90% (2012: 90%) and 86% (2012: 85%).

 


-     Online sales account for 40% (2012: 39%) in the UK and 67% (2012: 65%) in the Nordics.

 


-     Business improvement programme progressing to plan.

 

·   

Online Accommodation growth


 

-     Accommodation Wholesaler continues to build a global leadership position with TTV up by 10% for Summer 2013, driven by Latin America and Asia where TTV is up by 19%.

 

 

Peter Long, Chief Executive of TUI Travel PLC, commented:

 

"We have a clear roadmap for growth built upon a deep understanding of our industry and customers. Our strong operational performance over winter means we will deliver reduced winter losses. This very strong trading has continued into Summer 2013, leaving us well placed to achieve a full-year performance towards the upper end of our growth targets."

 

CURRENT TRADING

 

Winter 2012/13

 

Winter programmes across our Mainstream markets are almost fully sold. The season is ending strongly with higher average selling prices and margins across our key source markets.

 

 

Current Trading1

Winter 2012/13

 
 

YoY variation%

Total ASP2

Total
Sales2

Total
Customers2

 
Risk Only
Capacity3
Left to sell3








MAINSTREAM







UK

+6

+5

Flat


Flat

-3

Nordic region

+5

+10

+5


+4

-12

Germany

+8

+4

-4


-4

-27

France tour operators

+7

-25

-30


-33

-36

Other 4

+1

+1

Flat




Total Mainstream

+5

+2

-4











SPECIALIST & ACTIVITY

N/A

-3

N/A











Accommodation Wholesaler 5

+7

+25

+17




1 These statistics are up to 17 March 2013 and are shown on a constant currency basis

2 These statistics relate to all customers whether risk or non-risk

3 These statistics include all risk capacity programmes

4 Other includes Austria, Belgium, Netherlands, Poland and Switzerland and excludes Emerging Markets

5 These statistics refer to online accommodation wholesaler only; Sales refer to total transaction value (TTV) and customers refers to roomnights

 

Summer 2013

 

Since our last announcement, we remain particularly pleased with trading in the UK and Nordic source markets, where we see double-digit revenue growth. Average selling prices and margins across all key source markets are up year-on-year. To date 46% of the overall Mainstream Summer programme has been sold. In Accommodation Wholesaler and Specialist & Activity, trading remains in line with expectations.

 

Current Trading1

Summer 2013

 
 

YoY variation%

Total ASP2

Total

Sales2

Total

Customers2

 
Risk Only
Capacity3
Left to sell3








MAINSTREAM







UK

+4

+13

+9


+3

-3

Nordic region

+5

+15

+9


+9

+9

Germany

+6

+4

-1


+1

+1

France tour operators

+4

-6

-10


-19

-23

Other4

+3

+1

-1




Total Mainstream

+5

+7

+2











SPECIALIST & ACTIVITY

N/A

-5

N/A











Accommodation Wholesaler5

+4

+10

+6




1 These statistics are up to 17 March 2013 and are shown on a constant currency basis

2 These statistics relate to all customers whether risk or non-risk

3 These statistics include all risk capacity programmes

4 Other includes Austria, Belgium, Netherlands, Poland and Switzerland

5 These statistics refer to online accommodation businesses only; Sales refer to total transaction value (TTV) and customers refers to roomnights

 

Fuel/Foreign exchange

 

We have hedged the majority of our fuel and currency requirements for the seasons currently on sale, which gives us certainty of costs when planning capacity and pricing. The following table shows the percentage of our forecast requirement that is currently hedged for Euros, US Dollars and jet fuel.

 


Winter 2012/13

Summer 2013

Winter 2013/14

Euro

99%

97%

74%

US Dollars

98%

88%

73%

Jet Fuel

94%

87%

66%

As at 14 March 2012




 

 

Outlook

 

We are very pleased with the development of our trading performance since our last update across all of our key source markets. This performance is testament to our growth strategy. Demand for our unique holidays sold through our direct distribution channels, particularly online, continues to increase. This is against a backdrop of uncertainty in the Eurozone, highlighting that demand for the annual holiday remains resilient against a weak macroeconomic environment.

 

We are confident that our strategy is driving performance and we continue to expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year.

 

Enquiries:

 

Analysts & Investors

 

Andy Long, Director of Strategy & Investor Relations

Tel: +44 (0)1293 645 795

Tej Randhawa, Investor Relations Manager

Tel: +44 (0)1293 645 829

 

 

Press

 

Lesley Allan, Corporate Communications Director

Tel: +44 (0)1293 645 790

Mike Ward, External Communications Manager          

Tel: +44 (0)1293 645 776

Michael Sandler / Katie Matthews (Hudson Sandler)

Tel: +44 (0)20 7796 4133

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Trading Update - RNS