TUI Travel PLC (TT.LN) Tuesday said it expects full-year results to be in line with previous guidance as bad weather across Northern Europe encouraged consumers in that region to take vacations abroad and as it attracted more customers after the recent failure of smaller tour operators.

Europe's largest travel operator said it is reviewing its cost base to increase its competitiveness that will "further underpin delivery targets," and expects to incur additional charges for the 12 months to Sept. 30 relating to restructuring costs for Corsair and the U.K.

Overall, it said it had performed well in the market for late bookings for the summer 2010 season, with the majority of holidays now almost fully sold. Typically, the summer season runs through the end of October.

"This shows that demand for our holidays remains healthy despite the previously highlighted shift towards a later booking trend in the U.K.," Chief Executive Peter Long said.

He added the company was continuing to see positive trading trends for future seasons.

TUI Travel said its winter 2010/11 season was trading well across all source markets and that in line with its strategy to offer differentiated products, it has expanded concepts such as Club Nouvelles Frontieres in France, while launching new products such as Thomson Couples in the U.K.

It said trading for summer 2011 has also started well in the U.K. and Nordic region, the only two source markets currently on sale.

While there has been particularly strong demand for its differentiated products, the company retains a prudent outlook for the coming financial year.

In the U.K., average selling prices were up 10%, with cumulative bookings at Sept. 26 up 2%.

Across Central Europe, average selling prices dropped 2% with total sales up 3%. Total customers rose 5%.

Average selling prices across Northern Europe were up 9%.

TUI Travel's trading bucks trends reported by Thomas Cook Group PLC (TCG.LN), which last week announced a profit warning. The smaller rival said it continues to be hit by sluggish demand in the U.K. after the soccer World Cup finals, the general election and concerns about public-sector spending cuts dented consumers' confidence and their willingness to book vacations. Thomas Cook is targeting a cost-cutting drive in the U.K. that will include job cuts.

Over the past three months, TUI Travel's shares have gained 4% in value, closing Monday at 217 pence.

-By Kaveri Niththyananthan, Dow Jones Newswires; 4420 7842 9299; kaveri.niththyananthan@dowjones.com
Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di TUI Travel
Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di TUI Travel