Cash-strapped consumers are still prioritizing vacations but choosing more affordable destinations in Egypt. Bulgaria and Tunisia for an annual break, according to Europe’s largest package travel operator.
He said that new customers with smaller budgets who can’t find holiday packages in traditional destinations like Spain are looking elsewhere.
Inflationary pressures have eased, the travel company said, and the average price of its holiday sales has leveled off, although the cost of travel remains at a “significantly higher level” since 2019.
Prices are “at the level where we think they will stay,” said Sebastian Ebel, the group’s chief executive.
“We also often see new customers who have less income but still want to travel, and have a budget of €1,000/£800 per holiday, and if they don’t see that in Spain, they look for alternatives,” Ebel said.
“Mallorca will be full in summer, the Canary Islands are already full in winter. But it is enough for customers to find the right holiday.
The media reports that the return of foreigners to Tunisia and Egypt is limited for holiday destinations. a series of Islamic State terror attacks Around 2015, the number of visitors led to the sinking.
Meanwhile, Tui reported pre-tax annual profit of €1.3bn (£1bn) in the 12 months to the end of September, a 35% increase compared with the previous year.
The company said the strong performance of its holiday package and its cruise division are working to increase operating profit, helping the business to stabilize its financial and debt levels.
The travel company said it continued to reduce its net debt, cutting it from €500m to €1.6bn, amid the recovery from the coronavirus pandemic, when most international travel came to a halt.
Germany’s flagship company has received several players from the country’s government in 2020, the first year of the Covid lockdowns, with Tui reported a €3bn full-year loss.
More than 20 million customers traveled with Tui in the 12 months to 30 September, an increase of 7% on the year before, as consumers continue to travel.
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after a* A wave of hate tourism protests during the summer in Spain’s most popular tourist destination – from Málaga to Mallorca and Gran Canaria to Granada – Tui’s boss said he “took these protests very seriously”.
Ebel said he went to Mallorca and talked to local people about the issues, after ten thousand insurgents He called for a rethinking of the business model that they say has pushed up housing prices and pushed local people out of the cities.
The climbers are staying at the hotel so they don’t have to leave the apartment; “We’re going to put customers in hotels where our employees have good contracts, good working conditions,” said Ebel.
“On the contrary, we recognize that in some areas there is a great need for housing. We have been and are ready to make more housing for our people.