TUI Group, the German travel and tourism company, has reported turnover growth of 4.4% to €3.7bn (£3.2bn) for the Q1 period ending 31 December 2018, compared with €3.5bn (£3bn) last year, driven by strong performance from its hotel arm.
However, underlying EBITA decreased by €46.9m (£41.1m) year-on-year to €83.6m (£73.3m) during the period, with the main reasons for the decline in earnings being attributed to the “unusually long and hot summer in northern Europe”.
The group’s ‘holiday experiences’ segment, which encompases hotels and resorts, cruises and destination experiences, also accounted for around 70% of the group’s operating results during the previous financial year. During the 52-week period ending 30 September 2018 profits increased by 10.9% to €1.22bn (£1.09bn), and the group also saw its turnover jump 6.3% to €19.7bn (£17.7bn).
CEO Fritz Joussen said: “The overall trends for our sector are intact. Travel and tourism remain a growth market. Customers continue to travel, but they are currently resistant to increases in price. During this consolidation phase in our sector, it is particularly important to adequately participate in market growth.
“TUI has a good strategic and operational positioning, and the transformation of the group as a digital platform company is progressing. We have paved the way with our investments in hotels and ships, our IT and digital strategy and the acquisition of the Italian digital platform Musement in 2018.”