Travel giant Tui to publish results at ‘important time’

TUI remains optimistic for 2017
TUI remains optimistic for 2017

Thomson owner Tui will update the market on its first quarter trading figures this week as the City looks for any indication that a strong trend in British bookings last year continued into 2017.

The travel giant reported in September that British holidaymakers had shrugged off worries over the Brexit vote and plunging pound with strong demand for trips abroad.

Observers will look for signs that the upward trajectory continued, or if an expected dip in consumer confidence has started to affect bookings.

Graham Spooner, investment research analyst at The Share Centre, said: “This is an important time of year for the world’s largest tourism group as many people are planning and booking their summer holidays.

“In December the company said trading for the winter and summer 2017 seasons was in line with expectations.”

Tui said in September that the UK was its best-performing region over the summer season, with revenues up 5%, while bookings from Britain also surged by 22% for the winter as sun-seekers headed to long-haul destinations such as Mexico and the Dominican Republic.

Tui said long-haul bookings alone from the UK rose by 26% as it switches its focus to far-flung destinations, having added planes flying to Cuba and Sri Lanka.

It added that trips to the Canaries, Cyprus and Cape Verde also continued to be in demand as holidaymakers continue to stay away from politically unstable areas including Turkey and Egypt.