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TUI Travel PLC announces the following update on current trading prior to entering a close period ahead of reporting its Preliminary results for the year ended 30 September 2014 on 4 December 2014.

Peter Long, Chief Executive of TUI Travel PLC, commented:
"We are very pleased with our trading during the Summer 2014 peak season, particularly in the UK and Germany, with most of our programmes now almost fully sold. Our strong trading and market performance continues to be driven by increased customer demand for unique holidays and higher conversion rates from our web platforms, driven by our digital transformation strategy.

Our flexible and resilient business model is enabling us to deliver sustainable, profitable growth against a backdrop of more competitive trading in the commodity space and an increase in airline capacity. As a result of our successful strategy, we are confident of achieving full year underlying1 operating profit growth of at least 9% on a constant currency basis2, versus our previous guidance of 7% to 10%."

Highlights

  • Mainstream model driving outperformance

    • Full year underlying1 operating profit growth of at least 9% on a constant currency basis2, versus our previous guidance of 7% to 10%.

    • Strong high-season Summer 2014 trading closing out as expected, with higher average selling prices across Mainstream overall.

      • Pleased with UK yield performance (ASP +1%) and flat bookings, despite tough comparatives

      • Strong trading in Germany since the end of the World Cup with package holidays up by 22% (overall bookings up 9%) and margins ahead of last year

  • For Winter 2014/15, we have sold approximately 38% of the overall Mainstream programme with overall bookings up by 2%.

  • Encouraging start to Summer 2015 trading with UK bookings up by 11%.

  • Unique holidays and online focus delivering results

    • High demand for unique holidays continues - accounts for 70% of overall Mainstream Summer 2014 bookings, up three percentage points on prior year.

    • Strong online performance with Mainstream Summer 2014 online bookings up by 9%, accounting for 37% of holidays booked, up by three percentage points on prior year.

      • Germany performance particularly encouraging with online bookings up by 19%.

  • Online Accommodation growth

    • Accommodation Wholesaler continues to consolidate its global leadership position with double-digit TTV growth of 17% for Summer 2014

1 Underlying operating profit/loss excludes separately disclosed items, acquisition related expenses, impairment of goodwill and interest and taxation of results of the 
Group's joint ventures and associates. 
2 Constant currency basis assumes that constant foreign exchange translation rates are applied to the underlying operating result in the current and prior year

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Investor and Analyst Call

A brief conference call for investors and analysts will take place today at 8.30am (BST). The dial-in arrangements for the call are as follows:

Telephone                 +44 (0)1452 555 566
Participant code        1299 1805

A recording of the conference call will be available for 30 days on:

Telephone                 +44 (0)1452 550 000
Participant code        1299 1805

Preliminary Results

TUI Travel will announce its preliminary results for the year ended 30 September 2014 on 4 December 2014.

Statement of proposed merger of TUI Travel and TUI AG

Further to the announcements made by TUI Travel and TUI AG on 27 June 2014 and 25 July 2014, the Independent Directors of TUI Travel and the Executive Board (Vorstand) of TUI AG announced on 15 September 2014 that they have reached agreement on the terms of a recommended all-share nil-premium merger of TUI Travel and TUI AG, which is to be implemented by way of a Scheme of Arrangement of TUI Travel. Further announcements will be made as required.

Enquiries:

Analysts & Investors
Andy Long, Director of Strategy & Investor Relations
Tel: +44 (0)1293 645 831

Tej Randhawa, Investor Relations Manager 
Tel: +44 (0)1293 645 829

Sarah Coomes, Investor Relations Manager 
Tel: +44 (0)1293 645 827

Press
Lesley Allan, Corporate Communications Director 
Tel: +44 (0)1293 645 790

Mike Ward, External Communications Manager 
Tel: +44 (0)1293 645 776

Michael Sandler (Hudson Sandler)
Tel: +44 (0)20 7796 4133

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