Loss due to Corona
Tui tightens travel offer for Winter more
The Corona pandemic hit the travel provider, Tui hard. The Federal government helped with billions of euros. The new travel warnings are the last thing that the tourism giant is now in need of.
The world’s largest travel company, Tui, has evaporated in the face of new travel warnings due to the Covid-19-pandemic, its offer further.
For the winter season, the Hanoverian lines, about a fifth of the programme, a total of around 40 per cent of the original offer are still, as the company announced in Hanover. “This is the continuing uncertainty reflects, in terms of travel restrictions,” it said. The reduced offer was last posted to about 30 percent.
In August agreed and provided additional state credit of the Federal government of 1.2 billion euros, Tui have a liquidity of around € 2 billion. Due to the unsafe Travel conditions, the group anticipates a slightly worse development of the cash position in the first quarter of 2021 from October to the end of December. Per month, the outflow of funds is expected to be in the low to mid three-digit million range.
Currently the travel group is fighting with travel warnings from the foreign office, for instance, in Spain, including the Balearic and Canary Islands – in the case of German and British is a popular holiday destination. “Since the resumption of business with 1.4 million customers travelled with us in the holidays”, said Tui CEO Fritz Joussen and covered the period from mid-June until the end of August. “The availability of destinations is currently strongly influenced by the political assessment and the development of the pandemic. We are currently in a volatile market environment, and this is expected to remain also in the coming quarters,” explained the Manager.
Currently, the evaporated summer program is fully booked for this year to 82 percent in the previous year, it was sold almost completely. Overall, bookings were up 83 percent year-on-year, prices fell by almost a fifth.
In the summer of 2021, Tui wants to offer to back 80 percent of the originally planned capacity. Many vacationers have rebooked their travel to the upcoming year or want to secure your flights well in advance, including transfers, the bookings were for the summer of the coming year to 84 percent higher than a year earlier. Also, the average prices rose.