Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Holidaymakers give Tui a surprise boost

Share this article

Holidaymakers give Tui a surprise boost
Photo: DPA
11:01 CET+01:00
Germany's biggest travel agency Tui has unexpectedly hit the black - thanks to the Germans and British going on holiday despite uncertain economic times.

The business year 2012-13, which in Tui's accounting system ended in September, showed a surplus of €4.3 million, compared to a deficit of €15.1 million in the year before, the company said on Wednesday.

Analysts asked for their forecasts by Reuters journalists had predicted a loss of €27.4 million, the Handelsblatt business newspaper reported.

But strong demand for exclusive holidays, the sale of a hotel, and less loss from the Hapag-Lloyd container shipping subsidiary fed into strong figures from British and German holidaymakers to turn the numbers around.

Shareholders will get a dividend of 15 cents per share - the first time dividends have been paid since 2007. Then the payment was 25 cent a share.

Tui's CEO Friedrich Joussen, only moved from telecoms firm Vodafone early this year to head up the holiday giant - not only Germany's but Europe's biggest tourism group. He has been restructuring Tui, to reduce costs and try to make the company sharp enough to take on internet-based rivals.

But that restructuring added €57 million to costs last year, the Handelsblatt said.

The major problem facing Tui lies in the fact that its travel business is almost completely concentrated on one market – the UK. Tui Travel in the UK provides more than 95 percent of the group's turnover. Last year the turnover reached €18.5 billion.

It operates 3,500 travel agent shops across Europe.

READ MORE: Majorca: boozy Germans no longer welcome

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university tackling the challenges of tomorrow

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement