UK recession warnings cause tsunami of tourism bookings in Canary Islands

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Britons are booking their winter holidays faster than ever coronavirus crisis, However, according to the world’s largest tour operator, rising domestic bills and an impending slowdown could alter destination choices.

TUI AG, whose operations cover Mediterranean resorts, cruise ships and long-haul destinations such as Mexico and the Maldives, is seeing sales Positive winter in the UK compared to 2019, Chief Executive Designate Sebastian Abel said Wednesday. Continental reserves are slower and more variable, he said.

Although rising inflation rates may affect the correction, past experience suggests that people will opt for cheap brakes Instead of completely missing out on the winter sun as part of the TUI deal, Abel said on a conference call.

He said this indicates that people determined to take advantage of higher temperatures during the European cold have moved to cheaper medium-haul destinations, such as the Red Sea and the Canary Islands, instead of expensive long-distance trips. will go

So far, TUI has successfully overcome the increase in passenger cost. it is likely to increaseBut under inflation, Abel said, customers should therefore see vacations as “more profitable” than other purchases.

holiday preferences

Vacationers typically spend a set amount on vacation and stick to that budget when prices rise, prompting them to move to new destinations. In the European long distance market, A 10% increase usually triggers a change From the Dominican Republic to places like Egypt in the Caribbean.

“So we don’t expect a lot of impact,” he said. “It’s always a priority for customers to go on vacation.”

Abel said bookings kept coming in late in the day, often only four to eight weeks before the trip and two weeks in advance in the cruise division. Therefore, TUI takes a conservative approach to the level of capability deployed.

TUI, based in Hanover, Germany, said it was on track to post “fairly positive” profits for the financial year through September, with summer bookings remaining strong despite delays and cancellations that hit workforce across Europe. The trips were interrupted due to the shortage.

The company’s prices are currently about a fifth above pre-coronavirus standards, with 90% bookings compared to summer 2019 levels.


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