TUI Announce First Good News In Travel For Months
The weak economy has hit the holiday industry hard. One of the first businesses that fell victim was the high-profile case of XL tour operators. There have been many companies since that have revealed how they are struggling or not able to cope at all. TUI however, Britain’s biggest tour operator has revealed the first good news in a long time this month by announcing that its holiday sales are up on the previous month’s figures.Peter Long, chief executive at TUI suggested that this is because people are now a bit more comfortable about spending their disposable income. They are have realised that the recession it is not as bad as everyone made it out to be and now want to relax. “Customers who delayed purchasing holidays in the early booking season have started to return to the market” the company said.
Another factor that is likely have an influence is low interest rates. Utility bills have been reduced, mortgage rates are at a low point and food costs are at a reasonable level also. What this cumulative affect means is that people have a little more money to spend on looking after themselves. The most popular destinations are the hotter countries, namely the Mediterranean and Caribbean destinations where people can just chill out and enjoy a bit of sun. All inclusive holidays are very popular at the moment also.
Bookings are still down 7% on last year but this figure is a whole lot better than the 18% drop the rest of the year has shown. They have sold 93% of their winter holidays because despite the worst performing market currently being the Nordic region, holidays to Canada have been doing very well
TUI has said that this pick up represents a general improving trend in holiday sales. We are predicting that as the market claws back some of its strength, figures should begin to rise again back to what they were before the credit crunch hit.
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