The purported master of European holidays in southern Gran Canaria, TUI, is set to reveal whether tight budgets and rising prices have frozen consumers' holiday plans during the winter season. In response: narrow the reduced profit margins of hoteliers in the south of Gran Canaria. From the tourism sector in Maspalomas they pointed out that the company's hotels and resorts division will also be one to watch, as the hotel industry is affected by rising costs and wage pressure amid the shortage. of personal. But TUI previously said its hotel business had already returned to 2019 levels and it expected bookings to remain strong in the fourth quarter.
On Wednesday TUI is going to announce what happens with reservations for the coming months. He previously said winter bookings were more than three-quarters of pre-pandemic levels, and stressed that holidays and travel experiences were more important to people in the post-Covid era. This is despite TUI's average holiday selling prices rising by a quarter over the winter season, while inflation has eroded household incomes and led to consumer reports reducing non-market purchases. essential. In its third quarter trading update, Tui said it had seen a trend towards people booking higher value and longer holidays, and that UK summer bookings were 4% above pre-lockdown levels. pandemic by number.
So far, it appears that TUI has been able to increase the prices it charges customers by double digits, helping to offset the group's own high costs. The tourism sector expects to see what TUI predicts for further price increases in the new financial year - the belief that customers will continue to swallow more increases suggests consumer confidence remains strong. If the opposite were to happen, this could have implications for TUI's margins next year.
In September, TUI revealed that staff shortages at airports, which led to flight cancellations and long delays, had cost the company €75 million in the three months to the end of June. Significant disruption is expected over Christmas, with border staff striking at six airports from December 23 to Boxing Day and from December 28 to New Year's Eve.
