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TUI basks in Spanish sun

Thursday, August 11, 2016 - 01:36

Europe's largest tour operator, says it's on track to meet its profit target this year as more European holidaymakers head further west and Britons remain eager to go abroad despite the fall in sterling following the Brexit vote. Hayley Platt reports

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Holidaymakers are still heading for the sun. But some have changed where they're going. Europe's largest tour operator TUI says tourists are choosing Spain, Greece and Mexico over troubled holiday spots like Turkey, and to some extent France. (SOUNDBITE) (English) CITI EUROPEAN ECONOMIST, CHRISTIAN SCHULZ, SAYING: "The latest attacks of course happened in holiday season and in a very popular holiday resort so you would expect some impact from that. But most of the confidence surveys that we've seen since those attacks haven't really shown much impact. So it seems that the consumers and perhaps even tourists are taking this in their stride." Europe's travel industry has been hit hard in recent months. Security concerns and the uncertainty caused by Britain's decision to leave the EU the biggest worries. But Brits are still travelling despite the weak pound making holidays around 10 percent more expensive. Spain - traditionally a strong market for TUI - is enjoying a boom. The extra demand helping push up prices there. It's also helping TUI retain its full-year forecast. Profits rose 1.1 percent in the third quarter - and TUI expects a 10 per cent increase over the year, even though sales were down 5.7 percent because of the attacks. Their success contrasted with rival Thomas Cook. It's more exposed to troubled destinations like Turkey and last month lowered its full year profit forecast. It's now looking to steer customers towards the western Mediterranean too.

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TUI basks in Spanish sun

Thursday, August 11, 2016 - 01:36