Key events
Central Chiekrieequity analyst Hargreaves Lansdown looked at Tui.
Holiday maker yours delivered a strong performance for the year, as full-year operating profit is expected to bleed ahead of the market. As consumers continue to prioritize travel, more significant customers are willing to pay higher prices to enjoy a break from everyday life.
TUI owns the airline, cruise ships, hotels and resorts, giving more than 20 million customers a choice of over 180 destinations. In some ways, a broad package holiday makes the business more defensible – more to offer and lots of cross-selling opportunities. But the drain on cash with airplanes, huge hotels and cruise ships is enormous to maintain and fill, so it was good to see occupancy rates creeping higher across the board. Fewer empty rooms mean more efficiency and higher profits.
The book’s positive momentum continued into the new year as well. In the airline segment, 62% of the winter season seats have already been sold. Debt levels have been brought down to a comfortable level, and continued progress on this front could see dividends restored in the near term.
Susanna Streeterhead of finance and marketing at Hargreaves Lansdowne, he said;
Investors should look to be cautious ahead of a key growth report due in the US as they wait for more details on support for China’s struggling economy. The FTSE 100 is expected to open slightly lower, as wait-and-see mode prevails.
Hope is in the air for more clues about China’s latest stimulus plan, which is helping to lift markets midweek. The FTSE is set to edge higher in the morning market as the Central Labor Economic Conference begins with new targets expected to be released.
Since the Politburo announced that the monetary stimulus package will be adopted next year, investors are expected to receive more fiscal support, spending more and borrowing less. While the plans are still short on detail this week, the economic priorities set by the conference will be seen as an indication of how much Chinese authorities want to bolster domestic demand in the face of imposing US tariffs. set to block export.
Interest in the U.S. inflation outlook increased when the CPI snapshot of inflation was released later, with signs that prices have become tougher. Although the consumer price index, as of late, is not the preferred measure of inflation, it still has an influence.
If, as expected, the headline rate creeps up a bit, 0.1% in the month, it is likely that bets will increase next week’s cut. The stocks are already old in the next 85% probability that H will cause another 0.25% decline.
Crude oil prices are moderately higher this morning, with Brent crude futures down 0.2% to $72.36 a barrel, while US futures are at $68.76 a barrel.
Vico said:
Oil prices risked higher as Israeli forces attacked Syria’s navy amid a political vacuum following the Assad regime’s rule. Uncertainty about what the future holds for the country and the wider region has raised concerns about raw materials. Expectations for stronger specific development in China’s economic stimulus also raise hopes of stronger demand in the world’s second-largest economy. Brent crude is at $73 a barrel, rising for the third session in a row.
Introduction: Your bookings arise from the demand for holiday packages and more
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Europe’s largest price operator Yours He called it a “very good year” and said that both winter and summer were getting stronger from the books, which raised their prices and sold more holiday packages.
The Anglo-German firm said 20.3 million people will travel with Tui in 2024, compared with 19 million a year earlier, as revenues rose 12% to €23.2bn. Quarterly profit rose to €1.3bn from €977m. Profits are expected to rise between 7% and 10% next year.
Winter bookings rose by 4% year-on-year during the festive season with 62% sales. Tui raised its prices by 5% and sold more holiday packages and dynamically packaged itineraries, where travelers were individually priced.
People are writing more packaged holidays as they try to control inflationary pressures, but they are still keen to get away. Airlines have been hit harder by rising costs and weaker bookings, but Tui’s holiday business has thrived.
Summer bookings are 7% ahead of last year and Tui has sold 17% of those holidays, similar to this time last year, with prices raised by 3%.
Tui said that demand had remained robust during the year despite strong competition, but there had been a decline in customers in Belgium and the Netherlands making long journeys.
Sebastian EbelThe chief executive said;
We will focus on holiday packages and good cooperation with travel agencies.
It’s US growth day and the financial markets are on tenterhooks.
We expect the annual consumer price index to tick up to 2.7% from 2.6%, while the core measure, which strips out volatile items like food and energy, is forecast to have remained at 3.3%.
Agenda