Holiday giant TUI has reiterated its expectation of a strong 2025 on the back of its most successful third quarter period ever.
Underlying earnings surged by nearly 40% to €321m and group revenue was up 7% to €6.2bn. Furthermore, revenue rose across all of TUI’s divisions. The Hotels and Resorts division saw record results.
TUI Group CEO Sebastian Ebel said: “The third quarter and the first nine months of the financial year 2025 were strong. Our strategy is paying off. We are benefiting from our integrated and diversified business model and managed to reduce the Group’s seasonality further. All this in a continuing challenging environment for our M+A segment with economic difficulties in Europe, Europe-wide heat waves in the summer and the conflict in the Middle East. We are accelerating the transformation of the Markets + Airline segment (tour operator, retail and TUI Airline) by implementing standardised, global platforms that generate profitable growth and reduce our cost base. This means that we can offer our existing and new customers more products in more destinations – globally.
Mr Ebel added: “At the same time, the number of our source markets is growing. Individuality, flexibility and the proven security of the gold standard in package holidays are at the forefront of our efforts. We continue to rely on the proven sales strength of our own and partner travel agencies. To this end, we are further expanding our app offering. In May, we launched the TUI Tours platform in the German market. The platform enables customers to seamlessly personalise multi-day trips in real time and combine all our travel components. The FIT (Flexible Independent Travel) market is one of the fastest-growing segments in the travel industry. It is worth around €20bn in our core markets, with a significant share in Germany. In the future, TUI Tours will also be rolled out in other markets.”
TUI is expecting full-year revenue growth at the lower end of its 5%-10% growth target and expects underlying earnings to be up by between 9% and 11%.
TUI’s Medium-term goals
The tourism group has a clear strategy to accelerate profitable growth. The goal is to make the business more agile, cost-efficient and to increase speed to market, thereby additional shareholder value. TUI’s medium-term targets remain unchanged:
- An annual average growth rate of underlying EBIT of approximately 7% to 10% (compound annual growth rate/CAGR) at constant currency.
- A net leverage ratio of well below 1.0x.
- With the recent upgrades of our credit ratings by the rating agencies, TUI has achieved its goal of returning to pre-pandemic levels.
