TUI, Europe’s biggest tour operator says there will be a 14% increase in holiday prices for 2021 as compared to 2019.
However, the giant tour operator says that they are getting strong travel demand for summer as half of its holidays for May have already been snapped up.
Looking back over 2020, the firm said, “There was no Easter business. No travel at Whitsun and only very limited summer business.”
However, from a profit of €894m (£803m) in the previous financial year, Tui lost €3bn (£2.7bn) in 2019-20. Representing a loss of over £7m per day.
But bookings for summer 2021 are running 3% above the same time last year.
The chief executive, Fritz Joussen, said, “Tui is ready for a speedy and successful resumption of travel activities. As soon as the lockdowns are lifted and destinations reopen.”
In addition, he said, “The prospect of vaccinations from the beginning of the year will significantly increase demand for summer holidays in 2021. We are prepared for a new start after the crisis.”
The giant firm predicts that while 2021 “will be a transition year for tourism.” But it is expecting that in 2022 business will return to pre-coronavirus levels.
“The holiday sector will recover faster than the travel sector as a whole,” Tui says reflecting the belief that business travel will take years to build back to its 2019 levels.
“The unbroken high level of consumer interest in holidays promises a rapid recovery for the holiday sector if the corona situation eases. Tourism will remain a growth industry in the long term.”
However, The company is also upbeat about the prospects for cruising. Its experts say “a complete resumption of business as soon as vaccines become widely available”.
Mr. Joussen said, “Tui was in perfect health before the crisis. And we want to return to our former strength as quickly as possible.
“The market is intact, our business model is future-proof and customer demand is there. Holiday travel remains very relevant for people.
However, “Our business model with our own tour operators, the travel agencies, aircraft, hotels and ships under the Tui umbrella makes a resumption possible very quickly.”
In addition, he said, “All indicators point to a successful restart of the travel business as soon as the pandemic is over.”
Offering High Prices
But currently, winter bookings are down they are 82% lower than the previous year. Moreover, TUI has canceled all its trips from the UK to Lapland.
However, prices for holidays that are going ahead are four% higher than a year ago.
The company says it has reached an agreement with Boeing. And it will compensate for the consequences of the 737 Max flight ban.
Tui’s fleet of the aircraft type involved in two fatal accidents has been grounded since March 2019. Passengers are flying on the Boeing 737 Max again, but only currently in Brazil.