REG - TUI Travel PLC - Trading Update

Thu Sep 27, 2012 2:01am EDT

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RNS Number : 2926N
TUI Travel PLC
27 September 2012
 



 

 

 

27 September 2012

TUI Travel PLC

("TUI Travel")

 

Trading Update

 

Prior to entering its close period ahead of reporting its Preliminary results for the year ended 30 September 2012 on 4 December 2012, TUI Travel PLC announces the following update on current trading.

 

Highlights

 

·     

Remain on track to meet our full year expectations.

·     

Strong trading for Summer 2012 high season, with improved margins and load factors versus the prior year.

 

·     

Encouraging start to Winter 2012/13 trading. Strong differentiated product and online sales performance, particularly in the UK and Nordics.

 

·     

In A&D, Winter 2012/13 bookings are up 14% and sales (TTV) up 32% versus the prior year.

·     

In the UK, early bookings for Summer 2013 are significantly outperforming the market, particularly for our differentiated product.

 

·     

Business improvement programme progressing to plan.

 

Peter Long, Chief Executive of TUI Travel PLC, commented

 

"We are very pleased with our Summer 2012 performance, with most of our programmes now almost fully sold. High demand in the peak Summer period, driven by our strategy of differentiated and exclusive product distributed online, has resulted in strong lates margins and load factors.

 

"We remain on track to meet our full year expectations, with strong underlying trading offset by the impact of re-translation of fourth quarter Eurozone earnings.   Our continued outperformance in a challenging macroeconomic environment demonstrates our robust strategy is delivering clear results."



 

 

CURRENT TRADING

 

Summer 2012

 

The Summer 2012 programme is now almost fully sold, with load factors ahead of the prior year in our major markets. 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 with strong margins.

 

Current Trading 1

Summer 2012

 
 


 
 
 

YoY variation%

Total ASP2

Total
Sales2

Total
Customers2

 
Risk Only
Capacity3








MAINSTREAM







UK

+10

+5

-4


-6

Nordic region

+3

+9

+6


+4

Northern Region











Germany

+4

+5

+1


-6

Austria

+1

-2

-4




Switzerland

-7

+5

+13




Poland

+6

+41

+33




Central Europe

+3

+5

+2











France tour operators

+3

-3

-7




Belgium

-3

+3

+6




Netherlands

+3

+7

+3




Western Europe

Flat

+2

+2











SPECIALIST & ACTIVITY

N/A

+3

N/A




A&D4

+7

+16

+9











1 These statistics are up to 16 September 2012 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 These statistics refer to online accommodation businesses only; Sales refer to total transaction value (TTV) and customers refers to roomnights

YoY  customer booking variation %

Cumulative
bookings at 29 July

Bookings since previous trading statement

Cumulative
bookings at 16 September





UK

-5

-2

-4

Nordic region

+6

+7

+6

Germany

+2

-4

+1

France - tour operators

-9

-4

-7

Belgium

+5

+15

+6

Netherlands

+3

+9

+3

 



 

 

Winter 2012/13

 

For Winter 2012/13 it is relatively early in the booking cycle for most source markets, however trading has been encouraging since our last update in August and booked load factors are in line with our expectations.

 

Current Trading 1

Winter 2012/13

 
 


 
 
 

YoY variation%

Total ASP2

Total
Sales2

Total
Customers2

 
Risk Only
Capacity3
Left to sell3








MAINSTREAM







UK

+3

+5

+2


Flat

-1

Nordic region

+4

+8

+4


+4

+4

Northern Region

+3

+6

+3











Germany

+2

+9

+7


-2

-4

Austria

+5

+4

-2




Switzerland

-11

-2

+10




Poland

+13

-13

-23




Central Europe

+2

+8

+6











France tour operators

+3

-24

-26




Belgium

+6

-3

-8




Netherlands

-2

-12

-10




Western Europe

+1

-14

-15











SPECIALIST & ACTIVITY


-5





A&D4

+16

+32

+14











1 These statistics are up to 16 September 2012 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 These statistics refer to online accommodation businesses only; Sales refer to total transaction value (TTV) and customers refers to roomnights

In the UK, bookings are up by 2% against a flat capacity. Average selling price is up 3%, partly reflecting the successful pass-through of inflationary cost increases of 2%. Booked load factor is currently 31%. Sales of differentiated product are up 9% compared with this time last year, accounting for 63% of holidays sold to date, up four percentage points on the prior year. Online sales continue to grow, accounting for 41% of Winter holidays booked, up by four percentage points on the prior year.

 

In the Nordic region, bookings are up 4% in line with capacity. Sales of differentiated product are up 16% compared with this time last year, accounting for 69% of holidays sold to date, up seven percentage points on the prior year. Online sales continue to grow, accounting for 62% of Winter holidays booked, up by three percentage points on the prior year. Booked load factor is currently 49%.

 

In Germany, bookings are up 7% with long haul destinations performing particularly well. Booked load factor is currently 27%.

 

In France, we have re-mixed the programme by reducing capacity to long-haul destinations which tend to book earlier. As a result of this, volumes are down -26%, this is in line with our expectations and is consistent with the booking patterns for the remixed offering. Booked load factor is currently 27%.

 

Summer 2013

 

Summer 2013 UK bookings are up by 10% against the same period last year, with a slight increase in capacity. We are significantly outperforming the market and average selling prices are up by 3%. Sales of differentiated product are up 15% compared with this time last year, accounting for 68% of holidays sold to date, up one percentage points on the prior year. To date 11% of the programme has been sold.

 



 

 

Acquisition

 

The Accommodation & Destinations sector has acquired MalaPronta.com, Brazil's fourth largest accommodation-only OTA with a strong reputation and brand positioning. The gross assets of the business acquired were BRL 1.4 million (GBP 0.4 million) as at 31 December 2011. MalaPronta.com has achieved 117% compound annual revenue growth in the past 7 years growing to its current level of more than 130,000 room nights sold last year. The acquisition of MalaPronta.com is part of the Accommodation OTA strategy to build its offering and positioning globally particularly in the emerging markets.

 

Preliminary Results

 

TUI Travel will announce its preliminary results for the year ended 30 September 2012 on 4 December 2012, when we will also outline our roadmap for growth.

 

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 645 790

Mike Ward, External Communications Manager

Tel: +44 (0)1293 645 776

Michael Sandler / Katie Matthews (Hudson Sandler)

Tel: +44 (0)20 7796 4133

 


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