The insolvency of one of the largest German tour operators, the FTI Group, has reshaped the market for German tour operators in the south of Gran Canaria. Ingo Burmester, Ömer Karaca and company will discuss the consequences and opportunities this offers with Canarian entrepreneurs at the ITB in Berlin in March 2025. FTI's exit from the market has left visible traces in the German travel market and has also opened up room for change.
One of the side effects was the blocked places with airlines such as Condor or Germanwings. The Canary Islands Government has boosted promotion in Germany to maintain the recovery of this market that in the islands generated employment for 1.500 direct workers. Although FTI has gone bankrupt, the Meeting Point hotel chain is in the process of being sold as Maspalomas24H announced, which implies that, in principle, there will not be a scenario of employment regulation files (ERE) or temporary employment regulation files (ERTE). The most affected island is Gran Canaria with 20 hotel establishments respectively, managed by Meeting Point.
In southern Gran Canaria, the FTI crisis has been good for business leader TUI. This resulted in positive adjusted free cash flow (FCF) driven by growth across all business areas, as well as improved credit metrics such as debt/EBITDA ratio, Moody's Investors Service said. Rating analysts raised TUI's Corporate Family Rating (CFR) to Ba1 from B3 and Probability of Default Rating (PDR) to Ba1-PD from B3-PD. The outlook was changed from positive to stable. The outlook reflects the expectation that the travel group's leverage will remain constant at or below 2,5x through the end of each fiscal year and that FCF will continue to be in the mid- to high-single-digit percentage range relative to Moody's adjusted debt. Knockouts allow speculative investors to participate disproportionately in price movements. Simply select the desired lever and we will show you the appropriate open products at TUI.
