Just think that in the Canary Islands there will be just over half a million Dutch people on winter vacation. The British will exchange the Caribbean for the south of Gran Canaria to save the winter holidays. TUI is seeing demand for winter holidays above pre-pandemic. Price changes may cause people to switch from the Caribbean to cheaper places. The company's prices are currently about a fifth above pre-coronavirus norms, with bookings at 90% of the summer 2019 level, Bloomberg reports.
Britons are booking winter holidays at a faster rate than before the coronavirus crisis, although rising household bills and the looming recession could disrupt destination choices, according to the world's largest tour operator. . TUI AG is experiencing positive winter sales in the UK compared to 2019, CEO-designate Sebastian Ebel said on Wednesday. Continental reserves are slower and more variable, he said.
While there is a chance that spiraling inflation rates could disrupt the recovery, past experience suggests people will opt for cheaper breaks within the TUI offer rather than missing out on the winter sun entirely, Ebel said in a conference call. That indicates that those determined to enjoy higher temperatures during the European cold will shift to less expensive mid-distance destinations, such as the Red Sea and the Canary Islands, rather than expensive long-distance trips, she said. TUI has so far successfully overcome the increased costs for passengers. It's likely to rise even more, but below inflation, Ebel said, so customers should consider vacations to represent "more value for money" than other purchases.
Tourists typically look to spend a set amount on a vacation and stick to that budget when prices rise, prompting them to switch to new destinations. In the European long-haul market, a 10% increase typically triggers a shift from the Dominican Republic in the Caribbean to places like Egypt. Bookings continue to come in late in the day, often only four to eight weeks before the trip and as little as two weeks before in the cruise division, Ebel said. TUI therefore continues to take a cautious approach to the level of capacity deployed.
TUI said it is on track to post "significantly positive" profits for the financial year to September as summer bookings remain strong despite delays and cancellations that have disrupted travel amid a labor shortage. in all Europe.