Travel giant is hit by 83pc bookings slump
TRAVEL GIANT Tui has made further cuts to winter capacity due to changing restrictions, as it reported an unprecedented 83 per cent slump in summer bookings.
The Anglo- German business said it has cut its fourth quarter programme from 30 per cent to just 25 per cent, with the upcoming winter holiday capacity recently reduced by around another fifth.
It has also switched to alternative low- risk destinations, but said the last month has been impacted by “continuous changes in travel advice by various governments across our markets”, with holidaymakers now booking very last minute as a result.
It added that holiday prices have slipped by 19 per cent, while it has also seen winter sales fall 59 per cent against the same period last year.
Tui revealed plans to axe 8,000 jobs and shut 166 of its high street stores earlier in the pandemic as part of its cost- cutting plans.
It reduced its fixed costs by more than 70 per cent during the lockdown period and said it now hopes to permanently reduce its cost base by 30 per cent across the group.
The chief executive of Tui Group, Friedrich Joussen, said: “We have successfully restarted our operations; customers are enjoying their holidays with newly adapted hygiene protocols and we have taken 1.4 million customers on their holidays since restart.”
Russ Mould, investment director at AJ Bell, said: “Despite this optimism, Tui has seen a decline in booking volumes, holiday prices, holiday capacity and a shift in consumer trends whereby many people are waiting until the last minute to book, which clouds earnings visibility.”