TIDMTT. 
 
RNS Number : 0662J 
TUI Travel PLC 
24 March 2010 
 

                                                                   24 March 2010 
 
                                 TUI TRAVEL PLC 
 
Pre-Close Trading Update 
 
Prior to entering its close period ahead of reporting its Interim results for 
the six months ending 31 March 2010, TUI Travel PLC announces the following 
update on current trading. 
 
Highlights 
 
+-------+-------+---------------------------------------------------------+ 
| ·     | We are seeing a significant recovery in consumer demand         | 
|       | for leisure holidays resulting in strong trading across         | 
|       | all open seasons.                                               | 
|       |                                                                 | 
+-------+-----------------------------------------------------------------+ 
| ·     | Winter 2009/10:                                                 | 
|       |                                                                 | 
+-------+-----------------------------------------------------------------+ 
|       | ·     | Programmes are now almost fully sold and we have        | 
|       |       | achieved planned load factors.                          | 
|       |       |                                                         | 
+-------+-------+---------------------------------------------------------+ 
|       | ·     | Strong pricing seen in the lates market due to having   | 
|       |       | fewer holidays left to sell in the period.              | 
|       |       |                                                         | 
+-------+-------+---------------------------------------------------------+ 
| ·     | Summer 2010:                                                    | 
|       |                                                                 | 
+-------+-----------------------------------------------------------------+ 
|       | ·     | Trading during the key summer booking period remains    | 
|       |       | strong.                                                 | 
|       |       |                                                         | 
+-------+-------+---------------------------------------------------------+ 
|       | ·     | Improvements in cumulative booking volumes in most      | 
|       |       | source markets since our last update, with the UK and   | 
|       |       | Nordics up 13% and 23% respectively in the period.      | 
|       |       |                                                         | 
+-------+-------+---------------------------------------------------------+ 
| ·     | Significant progress expected in the second quarter             | 
|       | driven by reduced losses in Canada and Germany following        | 
|       | the completion of previously announced transactions.            | 
|       |                                                                 | 
+-------+-----------------------------------------------------------------+ 
| ·     | Remain well positioned to meet the Board's expectations         | 
|       | for the year ending 30 September 2010.                          | 
|       |                                                                 | 
+-------+-------+---------------------------------------------------------+ 
 
 
Enquiries: 
 
+----------------------------------------+--------------------+ 
| TUI Travel                             |                    | 
|                                        |                    | 
| Paul Bowtell, Chief Financial Officer  | +44 (0) 1293 645   | 
| Andy Jones, Director of Finance &      | 713                | 
| Investor Relations                     | +44 (0) 1293 645   | 
| Paul Rushton, Head of Investor         | 795                | 
| Relations                              | +44 (0) 1293 645   | 
| Lesley Allan, Corporate Communications | 795                | 
| Director                               | +44 (0) 1293 645   | 
|                                        | 774                | 
|                                        |                    | 
+----------------------------------------+--------------------+ 
| Hudson Sandler                         |                    | 
|                                        |                    | 
| Jessica Rouleau / Kate Hough           | +44 (0) 20 7796    | 
|                                        | 4133               | 
+----------------------------------------+--------------------+ 
 
Current Trading 
 
The strong trends reported in our previous trading statement on 9 February have 
continued and we remain pleased with our trading performance across all open 
seasons. 
Winter 2009/10 
Booking volumes are currently ahead or in line with capacity reductions in all 
source markets. We have very few holidays left to sell for the winter season, 
which runs until the end of April in most source markets. Pricing has held firm 
in the lates market and the low levels of stock left to sell leaves us confident 
that we will achieve required load factors and pricing levels for the remainder 
of the season. 
 
+-------------+--------+--------+------------+--------+--------+--------+ 
| Current     |        Winter 2009/10        |        |        |        | 
| Trading     |                              |        |        |        | 
| 1           |                              |        |        |        | 
|             |                              |        |        |        | 
+-------------+------------------------------+--------+--------+--------+ 
|             |                              |        |                 | 
+-------------+------------------------------+--------+-----------------+ 
| y-o-y       | Total  | Total  |   Total    |        | Risk            | 
| variation%  |  ASP2  |Sales2  |Customers2  |        |                 | 
+             +        +        +            +        +-----------------+ 
|             |        |        |            |        | Capacity3       | 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| MAINSTREAM  |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Northern    |        |        |            |        |                 | 
| Region      |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Short-haul  |  +9    |  -13   |    -21     |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Medium-haul |  +10   |  -1    |    -9      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Long-haul   |  +9    |  -10   |    -17     |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| UK          |  +11   |  -1    |    -11     |        |      -14        | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Nordic      |  +3    |  -7    |    -10     |        |      -11        | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Northern    |  +8    |  -3    |    -11     |        |                 | 
| Region -    |        |        |            |        |                 | 
| Total       |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Germany     |  -2    |  -10   |    -8      |        |       -9        | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Austria     |  -2    |  -23   |    -21     |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Switzerland |  -6    |  -2    |    +4      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Poland      |  -2    |  -19   |    -17     |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Central     |  -2    |  -10   |    -8      |        |                 | 
| Europe      |        |        |            |        |                 | 
| - Total     |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| France      |  -7    |  -10   |    -3      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Belgium     |  -5    |  Flat  |    +6      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Netherlands |  +5    |  -3    |    -7      |        |                 | 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| Western     |  -5    |  -6    |    -1      |        |       -1        | 
| Europe      |        |        |            |        |                 | 
| - Total     |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| SPECIALIST  |  -15   |  -20   |    -6      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| ACTIVITY    |  NA    |  -9    |    NA      |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
| A&D4        |  -2    |  +29   |    +32     |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+-----------------+ 
|             |        |        |            |        |                 | 
+-------------+--------+--------+------------+--------+--------+--------+ 
1 These statistics are up to 14 March 2010 and are shown on a constant currency 
basis 
2 These statistics relate to all customers whether risk or non-risk 
3 
These statistics include all risk capacity programmes 
4 These statistics refer to Online businesses only; Sales refer to total 
transaction value (TTV) and customers refers to roomnights 
Summer 2010 
For Summer 2010 trading we continue to see a strong improvement versus the prior 
year. In recent weeks, most source markets have continued to experience booking 
volumes ahead of the cumulative position. 
 
+--------------+--------------+--------------+--------------+ 
| y-o-y        |  Cumulative  |   Trading    |  Cumulative  | 
| customer     | position at  |31 Jan to 14  | position at  | 
| booking      |    31 Jan    |     Mar      |    14 Mar    | 
| variation %  |              |              |              | 
+--------------+--------------+--------------+--------------+ 
| UK           |      +1      |     +13      |      +3      | 
+--------------+--------------+--------------+--------------+ 
| Nordics      |     +23      |     +23      |     +23      | 
+--------------+--------------+--------------+--------------+ 
| Germany      |      -8      |      +3      |      -4      | 
+--------------+--------------+--------------+--------------+ 
| France       |     +17      |     +21      |     +19      | 
+--------------+--------------+--------------+--------------+ 
| Belgium      |      +1      |      -7      |      -3      | 
+--------------+--------------+--------------+--------------+ 
| Netherlands  |     -13      |     +12      |      -4      | 
+--------------+--------------+--------------+--------------+ 
 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Current     |         Summer 2010          |        |           |        | 
| Trading     |                              |        |           |        | 
| 1           |                              |        |           |        | 
|             |                              |        |           |        | 
+-------------+------------------------------+--------+-----------+--------+ 
|             |                              |        |                    | 
+-------------+------------------------------+--------+--------------------+ 
| y-o-y       | Total  | Total  |   Total    |        | Risk Only          | 
| variation%  |  ASP2  |Sales2  |Customers2  |        |                    | 
+             +        +        +            +        +--------------------+ 
|             |        |        |            |        | Capacity3 | Left   | 
|             |        |        |            |        |           | to     | 
|             |        |        |            |        |           | sell3  | 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| MAINSTREAM  |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Northern    |        |        |            |        |           |        | 
| Region      |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Short-haul  |  +10   |  +1    |    -8      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Medium-haul |  +8    |  +18   |    +10     |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Long-haul   |  +3    |  +14   |    +11     |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| UK          |  +9    |  +13   |    +3      |        |    +3     |  +3    | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Nordic      |  +1    |  +25   |    +23     |        |    +12    |  +2    | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Northern    |  +7    |  +14   |    +6      |        |           |        | 
| Region -    |        |        |            |        |           |        | 
| Total       |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Germany     |  +1    |  -3    |    -4      |        |    -5     |  -2    | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Austria     |  -1    |  +2    |    +3      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Switzerland |  -2    |  +2    |    +4      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Poland      |  -2    |  +15   |    +17     |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Central     |  +1    |  -3    |    -3      |        |           |        | 
| Europe      |        |        |            |        |           |        | 
| - Total     |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| France      |  -6    |  +11   |    +19     |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Belgium     |  Flat  |  -3    |    -3      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Netherlands |  Flat  |  -4    |    -4      |        |           |        | 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| Western     |  -2    |  +1    |    +3      |        |   Flat    |  -2    | 
| Europe      |        |        |            |        |           |        | 
| - Total     |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| SPECIALIST  |  +6    |  +2    |    -4      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| ACTIVITY    |  NA    |  +9    |    NA      |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
| A&D4        |  +2    |  +54   |    +51     |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
|             |        |        |            |        |           |        | 
+-------------+--------+--------+------------+--------+-----------+--------+ 
1 These statistics are up to 14 March 2010 and are shown on a constant currency 
basis 
2 These statistics relate to all customers whether risk or non-risk 
3 
These statistics include all risk capacity programmes 
4 These statistics refer to Online businesses only; Sales refer to total 
transaction value (TTV) and customers refers to roomnights 
 
The UK business has continued to trade well in recent weeks. Since our last 
trading update, booking volumes in the UK were up 13%, well ahead of capacity 
and stock left to sell. The UK load factor is now 43%, flat versus the prior 
year despite a small increase in capacity. Average selling prices remain strong 
and are up 9% year-on-year. 
 
In the Nordics, booking volumes remain up 23% and we have further increased 
capacity, now up 12%, reflecting the continued strong demand. The capacity 
increase has been implemented through additional third party flying arrangements 
which remain flexible at this stage of the booking cycle. The strong demand 
continues to be driven by our differentiated and exclusive Blue Village and Blue 
Star family club concepts. Load factor is now 52%, up five percentage points 
compared to Summer 2009, despite the capacity increase. 
 
In Germany, booking volumes have improved recently and are up 3% in the last six 
weeks, compared to cumulative bookings down 4% and capacity down 5%. Load factor 
is now 45%, in line with last year. 
 
Trading in Austria and Switzerland remains in line with expectations. Demand has 
strengthened significantly in Poland over recent weeks, where booking volumes 
are now up 17% versus 1% down at our previous trading update. 
 
Demand in France has been well ahead of the prior year, when destination issues 
in the French West Indies and the economic environment affected bookings. 
Customer volumes are now up 19%, with favourable booking trends in both 
Nouvelles Frontieres and Marmara. Bookings for the tour operators' 
differentiated club products, Club Nouvelles Frontieres and Club Marmara, have 
been particularly strong. Corsair, however, continues to experience yield 
pressure on many of its routes, reflecting the competitiveness of the market, 
which suffers from over supply, and its own weak product positioning. 
 
Belgium, which has remained resilient so far during the financial downturn, has 
seen a slight slowdown in sales in the last few weeks but has the flexibility to 
adjust capacity if necessary. 
 
The Specialist & Emerging Markets sector sold 15% more holidays in the last four 
weeks compared with the prior year, leading to an improved cumulative booking 
volume position, which is now down 4%. There has been recent strength in US 
escorted tours and US student educational tours in particular. 
 
In the Activity sector, cumulative sales to date are now up 9%, with sales in 
the last four weeks 24% ahead, driven by strong demand for Marine holidays. 
 
Strong volume growth in the B2C and B2B Online businesses in the A&D sector has 
continued, with roomnights up 51%. Margins remain ahead of the prior year. 
 
Outlook 
 
We are encouraged by recent strong trading trends and are confident as we move 
towards the summer season that we will continue to see strong demand and a 
recovery in earlier booking patterns. Accordingly, we remain well positioned to 
meet the Board's expectations for the year ending 30 September 2010. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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