Tui, Europe's largest tour operator, has reported a significant increase in profit for the last financial year, with underlying earnings before interest and taxation (EBIT) rising by 33% to €1.3bn, up from the previous year's €977m.
This comes as more than 20 million customers chose to travel with the package holiday provider, as reported by .
Revenue also saw an increase, climbing 12% to reach €23.2bn. Tui's CEO, Sebastian Ebel, praised the company's performance, describing it as a "very good year" and stating that the firm is "well positioned" for future success.
Despite this, shares in the company fell by over 5% in early trading due to slower growth forecasts for the upcoming year. The company's guidance for full-year revenue growth currently stands at 5-10%, with underlying EBIT expected to grow by 7-10%.
Tui, which recently switched its London listing for Frankfurt, also reported an increase in prices throughout the year, with costs for winter and next summer predicted to rise by 5% and 3% respectively. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, commented: "Consumers continue to prioritise travel, meaning more customers have been willing to pay higher prices to enjoy a break away from everyday life."
Chiekrie also highlighted the diverse nature of Tui's business, which includes an airline, cruise ships, hotels and resorts, as a factor in its resilience to wider trends.
He further commented: "The drains on cash when you have planes, huge hotels and cruise ships to maintain and fill are enormous, so it was good to see occupancy rates across the business creep higher. Fewer empty rooms mean more efficiencies and higher profits."
