Published on : Thursday, December 10, 2020
TUI Group recently reported a total loss of €3.1 billion in travel for financial year 2020 as the COVID-19 pandemic takes the world storm. The figure was a huge decline as compared to the profit of €532 million as seen last year. The travel giant saw revenue of €7.9 billion, down 58% from the €18.9 billion as reported in 2019.
However, TUI sought to fight against the critical results and stated that the corner had been turned and the next summer was looking a lot brighter. The company said average prices were up 14% for next year, while bookings were 3% higher than for summer 2019. The agency also mentioned that the demand for travel is also rising, with 50% of the programme for May next year already booked.
With a record booking increase of 14% in January, the first five months of the 2020 financial year (October 2019 to February 2020) were very successful for TUI. In mid-March, the group had to completely discontinue all travel activities due to the worldwide travel restrictions amid the COVID-19 pandemic.
The tourism group was only able to generate revenue again when it was able to fly its first holiday guests to Majorca in mid-June in a pilot project and a limited resumption of operations from July onwards. Greece was particularly strong as a holiday destination in 2020. Fritz Joussen, Group Chief Executive, TUI said in a statement that even though the pandemic is not over, there is light at the end of the tunnel and the prospects for tourism and for TUI are good.
He shared that the demand for holiday travel is already being noticed and consumers in all age groups say that travelling is one of the most missed activities for them in the COVID year. He also mentioned that next year is likely to be a transitional year for tourism, and 2022 is expected to see a return to pre-corona levels. He even mentioned that the holiday sector in particular, will recover faster than the sector as a whole.
He also added that the rapid measures to cut costs and secure liquidity are important for the group. He shared that TUI was in perfect health before the crisis and wishes to return to its former strength as quickly as possible and they are a stable foundation for the future. He informed that TUI’s market is intact, business model is future-proof and customer demand is present ultimately making recovery possible.