TIDMTT.
RNS Number : 3100A
TUI Travel PLC
29 March 2012
29 March 2012
TUI Travel PLC
("TUI Travel")
Pre-Close Trading Update
Prior to entering its close period ahead of reporting its
Interim results for the six months ending 31 March 2012 on 8 May
2012, TUI Travel PLC announces the following update on current
trading.
Highlights
-- Overall trading remains in line with our expectations.
-- UK Winter trading exceeding expectations:
-- Strong demand in the lates booking period.
-- Improved yields and load factors.
-- Out-performing the market.
-- Summer 2012 volumes have improved in all key markets since our
last update.
-- UK Summer 2012 controlled distribution at 90% with online sales
accounting for just under half of this.
-- Differentiated products continue to outperform the market in
summer 2012:
-- UK 63% of bookings - up seven percentage points on prior
year.
-- Nordics 78% of bookings - up five percentage points on
prior year.
-- - Demand for North Africa remains weak, particularly in France.
-- Business improvement programme progressing to plan.
-- In A&D, Summer 2012 bookings are up 19% and sales up 32% versus
the prior year.
Peter Long, Chief Executive of TUI Travel PLC, commented
"We are pleased with our Winter performance, particularly in the
UK, where our focus on differentiated product and online
distribution is resulting in us out-performing the market.
"Summer 2012 volumes have improved in all key markets since our
last update. We are pleased with the development of bookings and
pricing in the UK, where we continue to out-perform the market and
have a strong performance in online sales.
"In addition, our business improvement programme is progressing
according to plan. We remain confident that these self-help
measures, coupled with our strategy, will help us to deliver in the
current challenging macro-economic environment."
CURRENT TRADING
Winter 2011/12
Winter programmes across all markets are almost fully sold, with
load factors ahead of the prior year and strong late bookings.
Since our last announcement the cumulative bookings position has
improved in all of our key source markets. As a result we have
fewer holidays left to sell than at this stage last year, which has
allowed pricing levels to be maintained in the lates market.
In the UK, booked load factor is currently 90% which is slightly
ahead of this stage in the previous year. We are pleased with our
price performance, with average selling prices up 4% due to
inflationary cost increases and increased differentiated product
sales.
Current Trading(1) Winter 2011/12
YoY variation% Total ASP(2) Total Total Risk Only
Sales(2) Customers(2)
Capacity(3) Left to sell(3)
MAINSTREAM
UK +4 -4 -8 -9 -22
Nordic region Flat +6 +6 +6 -4
Northern Region +3 Flat -3
Germany +4 +2 -2 -14 -11
Austria -1 -2 -1
Switzerland -13 -15 -1
Poland +9 +46 +34
Central Europe +3 +2 -1
France tour operators +1 -7 -7
Belgium -3 +5 +8
Netherlands +6 +26 +19
Western Europe +1 +6 +5
SPECIALIST & ACTIVITY N/A +8 N/A
A&D(4) +4 +20 +15
(1) These statistics are up to 25 March 2012 (2) These
statistics relate to all customers whether risk or non-risk (3)
These statistics include all risk capacity programmes (4) These
statistics refer to online accommodation businesses only; sales
refer to total transaction value (TTV) and customers refers to
roomnights
Summer 2012
Since our last announcement we are pleased with our trading
performance in all our key markets with the exception of
France.
Trading in the UK continues to outperform the market, with 48%
of the programme sold to date which is in line with the prior year.
Average selling price is currently up 8% reflecting cost base
inflation of approximately 5% and the continued increase in
differentiated product sales. Our differentiated products which are
difficult for all our competitors to replicate continue to perform
strongly, and currently account for 63% of UK bookings, up seven
percentage points on prior year. We have continued to increase the
proportion of holidays sold online with 40% booked online for
Summer 2012, up five percentage points versus the prior year.
In the Nordic region trading has been encouraging since our last
update, with volumes continuing to trend towards our flat year on
year capacity. To date we have sold 50% of the programme (broadly
in line with the prior year) and differentiated content continues
to increase within the sales mix with these products accounting for
78% of bookings to date up five percentage points on the prior
year.
In Germany, where the programme is 50% sold (broadly in line
with the prior year), trading for Greece and North Africa remains
challenging, however since the last announcement we have begun to
see an improvement in demand.
In France trading has been challenging due to the continued slow
recovery of North Africa and the prevailing economic conditions.
The forthcoming Presidential elections have also impacted volumes
for the early part of the Summer season, for which we are managing
capacity accordingly.
In Belgium where the programme is now 45% sold, the later
booking profile continues and in the Netherlands trading is 4%
behind last year with 48% of the programme sold.
Sales in Specialist & Activity are up 7% on prior year. The
Adventure division continues to be affected by lower demand for
North Africa and there continues to be weaker demand for gap year
travel in the Education division, however, trading in the Sport
division has been strong due to events such as the Olympics and the
2012 UEFA European Championships.
In A&D, Summer 2012 bookings are up 19% and sales up 32%
versus the prior year, driven by both the B2B (bookings up 20%) and
B2C (bookings up 13%) divisions. The strong trends experienced in
the Winter season have continued for Summer 2012.
YoY customer booking variation % Cumulative Bookings since previous Cumulative
bookings at 29 Jan trading statement bookings at 25 Mar
UK -7 -5 -6
Nordic region -8 +6 -2
Germany -4 +7 Flat
France tour operators -13 -20 -17
Belgium -1 -3 -2
Netherlands -6 -1 -4
---------------------------------- -------------------- ------------------------ --------------------
Current Trading(1) Summer 2012
YoY variation% Total ASP(2) Total Total Risk Only
Sales(2) Customers(2)
Capacity(3) Left to sell(3)
MAINSTREAM
UK +8 +1 -6 -7 -7
Nordic region +1 Flat -2 Flat +4
Northern Region +7 +1 -6
Germany +1 +1 Flat -8 -10
Austria Flat -4 -4
Switzerland -6 +1 +7
Poland +3 +31 +28
Central Europe +1 +1 +1
France tour operators +3 -14 -17
Belgium -5 -6 -2
Netherlands +4 Flat -4
Western Europe Flat -6 -5
SPECIALIST & ACTIVITY N/A +7 N/A
A&D(4) +12 +32 +19
(1) These statistics are up to 25 March 2012
(2) These statistics relate to all customers whether risk or
non-risk (3) These statistics include all risk capacity programmes
(4) These statistics refer to online accommodation businesses only;
sales refer to total transaction value (TTV) and customers refers
to roomnights
Fuel/Foreign exchange
We are largely hedged for the current financial year, which
gives us certainty of costs when planning capacity and pricing. Jet
fuel costs account for approximately 10% of our cost base and at
current market rates we estimate our fuel costs would increase by
circa 10% for 2013.
Winter 2011/12 Summer 2012 Winter 2012/13
Euro 100% 97% 74%
US Dollars 93% 93% 69%
Jet Fuel 94% 86% 60%
As at 22 March 2012
--------------------- --------------- ------------ ---------------
Outlook
We continue to operate in a challenging geopolitical and
economic environment. Despite this, Summer 2012 volumes have
improved in the key markets of the UK, Nordics and Germany since
our last update. Trading in France, however, remains difficult
where bookings for North Africa are weaker than originally
anticipated. Demand for our differentiated product continues to
increase and we remain confident in the flexibility of our business
model to match profitable demand and deliver clear self-help
measures through the business improvement programme.
Enquiries:
Analysts & Investors
Will Waggott, Chief Financial Officer Tel: +44 (0)1582 645 334
Andy Long, Head of Strategy & Investor Relations Tel: +44 (0)1293 645 795
Press
Lesley Allan, Corporate Communications Director Tel: +44 (0)1293 645 774
Michael Sandler / Kate Hough (Hudson Sandler) Tel: +44 (0)20 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTPGUPCWUPPGBR
TUI Travel (LSE:TT.)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
TUI Travel (LSE:TT.)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
