TUI CEO Sees Strong Summer Bookings - "Mallorca Back in High Demand"

The head of travel giant TUI reports a pick-up in business after a slow start to the year.

"By early June, we've sold around 65 percent of our summer holidays in Germany--slightly more than at the same point last year," CEO Sebastian Ebel told the Rheinische Post, according to an advance release on Friday. For classic destinations such as Spain, Portugal, and Greece, the company has already sold 90 percent of its offerings. "Mallorca is once again a top seller," Ebel emphasized. However, TUI still has more availability in several other destinations.

Looking at the U.S. market, Ebel notes changes in travel behavior. "TUI doesn't have a particularly large U.S. business, but we are seeing some shifts," he said. Canada is trending, as is the Caribbean. "And with the euro strengthening, more people are booking trips to these destinations for autumn and winter, as prices have become more attractive," the CEO explained. This summer, travelers have not yet noticed the dollar's depreciation when booking, as TUI had already purchased the necessary currencies last autumn and secured favorable rates.

According to Ebel, the cruise sector is performing particularly well. "The cruise boom is strong and sustainable. We're seeing significant growth," the manager stressed. TUI will increase its cruise capacity by a quarter this year, and by 45 percent next year, bringing the "Mein Schiff" fleet to nine vessels.

Given the positive booking trends, Ebel reaffirmed the company's annual forecast of five to ten percent revenue growth and a seven to ten percent increase in operating profit.

(Reporting by Philipp Krach, edited by Ralf Banser. For inquiries, contact our editorial team at [e-mail] (for politics and economics) or [e-mail] (for business and markets).