Travel shift.

Kathimerini English - - Business & Finance -

TUI Travel, Europe’s big­gest tour op­er­a­tor, said it was on track to meet full-year ex­pec­ta­tions as in­creased de­mand for al­ter­na­tive des­ti­na­tions off­set the im­pact of un­rest in Egypt and Tu­nisia. The FTSE 100 com­pany, ma­jor­ity-owned by Ger­man group TUI AG, said yes­ter­day dis­rup­tion from trou­bles in Egypt and Tu­nisia had knocked 29 mil­lion pounds ($47 mil­lion) off first-half profit, com­pared with the 30 mil­lion it an­tic­i­pated. For the sec­ond half, TUI Travel ex­pected to be able to fully mit­i­gate the im­pact by in­creas­ing the amount of hol­i­days on sale to al­ter­na­tive des­ti­na­tions. “The flex­i­bil­ity of our busi­ness model has al­lowed us to re­act quickly to mit­i­gate the im­pact of the events in North Africa in the up­com­ing sum­mer sea­son,” chief ex­ec­u­tive Peter Long said. “We have re­shaped our pro­grams across all source mar­kets to sat­isfy the shift in de­mand to al­ter­na­tive des­ti­na­tions in­clud­ing Spain, Greece and Tur­key.” In con­trast, archri­val Thomas Cook had said on Mon­day the im­pact of un­rest in the Arab world had been worse than pre­vi­ously thought and had been com­pounded by tough trad­ing con­di­tions in Bri­tain. TUI Travel shares, which were down 13 per­cent since Jan­uary, were up 1.5 per­cent early yes­ter­day, while Thomas Cook shares were down 1.0 per­cent.

(Reuters)

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