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Tui sees rise in profits as travellers choose holidays to cheaper destinations

The cruise operation – branded as Marella in the UK – has ‘very strong occupancy and a strong increase in the daily rate’

Simon Calder
Travel Correspondent
Wednesday 11 December 2024 04:44 EST
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Splashing out: Holidaymakers with Tui are paying more for their trips, including voyages on Marella cruise ships
Splashing out: Holidaymakers with Tui are paying more for their trips, including voyages on Marella cruise ships (Marella)

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An unrelenting appetite for travel has increased profits for Europe’s biggest holiday company, Tui.

The Anglo-German firm made €1.3bn (£1.07bn) in the full year to the end of September 2024, one-third up on the previous year.

The number of passengers increased by 7 per cent to 20.3 million. The company says: “Demand remained robust throughout the year in a highly competitive environment, with overall customer numbers up and prices higher.”

Tui’s chief executive, Sebastian Ebel, said: “We have delivered what we promised – 2024 was a very good year for us.

“In what remains a challenging market environment, the entire Tui team has shown that we have the right strategy, the right business model and the right people, who work for our guests every day with commitment, creativity and passion.”

Tui’s cruise operation – branded as Marella for UK holidaymakers – has “very strong occupancy and a strong increase in the daily rate,” Mr Ebel said.

The company is seeing customers moving to cheaper destinations, including Bulgaria, Egypt and Tunisia.

Mr Ebel said: “The Canary Islands are full at the moment”. Guests from the US and Asia are adding to exisiting demand from Europeans.

The company is increasing its activities in Latin America, Africa and Asia. “This reduces our regional dependence on Europe at a time when the European economy is growing little or not at all,” Tui says.

Tui has just started selling Ryanair flights as part of its city-breaks programme. “The first two days have been outstandingly good,” Mr Ebel said. The company has long offered flights on easyJet to support its package holiday company.

For the new financial year, the company predicts an increase in revenue of 5 to 10 per cent. Profits are expected to rise by between 7 and 10 per cent, “particularly supported by the expectations for summer 2025”.

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