Holiday company TUI scraps last-minute flight deals for this summer

Popular holiday company Tui has confirmed that it will not be offering cheap last-minute deals this summer. Its chief executive said the decision comes following an upsurge in customer demand.

Fritz Joussen has confirmed that the company will continue to offer its current prices, which contrasts sharply with previous years. He told reporters: “There will hardly be any last minute offers for this summer. Over the last six weeks we have seen demand beyond 2019.

“We want to keep that momentum going, but we’re not going to suddenly switch to discounts.”

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The company says the price of its summer holidays has also risen by 20%, but bosses insisted this was due to factors including longer holidays and more expensive trips, including hotels. five stars. This year is said to mark the first time many people have sought to travel since the start of the coronavirus pandemic.

The announcement comes as the company more than halved its losses over the past six months as the rebound in customer numbers accelerated and bookings surged. TUI recorded a revenue loss of €614.5m (£525m) for the half to March 31, following a loss of €1.3bn (£1.11bn) for the same period of the previous year.

Manchester Evening News reports Tui promised shareholders the company could return to profit by the end of the year, and also said it expected a “strong” summer. So far, the company has already seen 85% of booking levels reached in the summer of 2019, before the tourism industry really saw the impact of the pandemic.

The holiday provider also said the last quarter had “significantly improved” as the easing of Covid-19 restrictions helped encourage people to book more holidays with its UK operation “continuing to improve”. ‘leading the way’ for summer bookings which so far show an 11% increase from levels seen in summer 2019.

TUI said it eventually expected its summer bookings to “nearly reach” 2019 levels, and noted it had seen many holidaymakers wanting to book “more at short notice”. It is also claimed that people seem willing to spend more money on each trip.

Additionally, revenue in the last half of the year increased more than fivefold to €4.5bn (£3.8bn) compared to the same period 12 months earlier. Just a year ago, the vacation giant was still grappling with coronavirus restrictions.

Mr. Joussen said: “The strong demand for travel and the very good commercial performance confirm our forecasts. 2022 will be a good financial year. Capacity is almost back to the pre-corona level of 2019. After two years of crisis, we expect Tui to return to profitability in the current financial year with a significantly positive underlying EBIT (earnings before interest and taxes) . This is the basis for new growth.