TUI PLC has announced that its summer 2009 programs, which run through October, are now almost fully sold to the required load factors and pricing, according to a company trading update for its year ending Sept.30, 2009.
Winter 2009/2010 booking volumes remain lower than last year, however, which the company said it has anticipated, and has made capacity adjustments to align supply with demand.
Early bookings in the UK for summer 2010 are in line with the prior year (2009), according to TUI, with average selling prices up 4 percent.
Peter Long, chief executive, said in the prepared statement that the summer market has traded well, showing that holiday demand and supply have been in balance, despite the lack booking trends.
Year-over-year summer sales are projected to be down 4 percent in the UK, 4 percent in the Nordic countries, 12 percent in Germany, 14 percent in Central Europe and 10 percent in other Western European countries.
Capacity reductions means TUI has 12 percent less inventory left to sell in the UK and the Nordic countries for the winter season. In Germany, capacity is down 7 percent, but lower flying costs (driven by lower fuel prices) and accommodations savings mean that TUI can reduce prices while maintaining margins, the company said.
The summer 2010 programs have so far only been put on sale in the UK and 12 percent of the capacity has been booked, which is in line with last year.
TUI Travel sources passengers in some 25 national markets and operates in more than 80 countries. The company has a fleet of 150 aircraft and also owns Thomson Cruises. TUI services more than 30 million customers a year.