The operator TUI tourist TUI has reaffirmed its commitment to maintaining capacity volumes in the south of Gran Canaria ahead of this summer's peak season. Neil Swanson, TUI's managing director for the United Kingdom and Ireland, expressed his satisfaction with this decision, highlighting that, unlike competitors such as Jet2 and easyJet, which have significantly increased their capacity, TUI has opted for a more conservative strategy, which he believes is appropriate in the current market environment.
According to Swanson, 2025 has continued the trend toward late bookings, reinforcing the need to avoid overloading the market with oversupply. "I'm glad we didn't increase. Jet2 increased by 10% and easyJet by 35%, leaving a lot of unsold capacity. By comparison, our position looks the best to me," Swanson said at a recent dinner with journalists. The TUI executive emphasized the importance of finding the right balance between boosting early sales and maintaining sustainable margins. "It's a tricky balancing act. While demand is strong, the high capacity in the UK market has squeezed margins," he explained, adding that they sacrificed some margin at the start of the year to ensure there would be less inventory to sell at the end of the season.
Bart Quinton Smith, TUI's Sales and Marketing Director, emphasized that price sensitivity is particularly high this year. Customers are looking for deals before confirming their reservations, something the company has capitalized on by introducing packages that include flights from partner airlines. This dynamic model allows TUI to benefit from the competitive prices of other airlines, while maintaining its appeal to more price-sensitive customers.
Swanson also emphasized how this strategy allows TUI to adapt to market fluctuations. “Prices as low as those during Easter, even at the beginning of summer, are opportunities we can take advantage of for customers who don't necessarily want a full TUI product,” he noted. With competitors aggressively increasing their offerings and the British market flooded with additional seats, TUI appears to have found a strategic middle ground that allows it to maintain its position in key destinations like southern Gran Canaria. The company is confident in its ability to strengthen demand and maximize profitability without exposing itself to oversupply that compromises its margins.
