TUI Travel boasts product value increase but demand slips

Average selling prices for package holidays with TUI Travel PLC are currently running at 10% higher in the UK than in 2008 but sales and customers numbers are down.

TUI Travel‘s interim management statement, covering trading in the Winter 2008-09 period up to 1 February 2009, indicated a drop in customers numbers for UK charter holidays of 12%.

The same drop could be seen in other territories in the TUI Travel portfolio with Northern Region (Nordic, Canada) 10%, Central Europe 11%, Germany 11% and Western Europe 9%.

However the average sales price is strong across the group with gains in Northern Region (7%), Germany (6%), Central Europe (6%) and Western Europe (5%).

The company said it remained on track reach full year financial targets for the year ending September 2009.

The statement said: “Despite the challenging trading environment and an anticipated flatter booking profile, we are achieving our load factor and margin targets due to our ongoing management of capacity, and we expect this to continue through the summer season.”

More information:

* TUI Travel PLC interim management statement

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