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 2013 on 10 December 2013.

Highlights

  • Robust Modern Mainstream model driving further positive momentum
    • Full year underlying operating profit growth guidance increased - now confident of achieving at least 11% growth on a constant currency basis.
    • Strong high-season Summer 2013 trading in the UK and Nordics with revenues up 8% and 10% respectively.
    • For Winter 2013/14, we have sold approximately 31% of the overall Mainstream programme. Average selling prices across all key source markets are up year-on-year.
      • The Winter 2013/14 Egypt programme is being reduced significantly and capacity is being increased to other destinations.
  • Unique holidays and direct distribution strategy delivering results
    • Unique holiday bookings in the UK, Nordics and Germany increased by 13%, 11% and 5% year-on-year respectively for Summer 2013.
    • Direct distribution sales in the UK and Nordics for Summer 2013 of 91% (2012: 90%) and 89% (2012: 87%) respectively.
      • Online sales account for 48% (2012: 45%) in the UK and 70% (2012: 68%) in the Nordics.
  • Online Accommodation growth
    • Accommodation Wholesaler continues to build a global leadership position with TTV up by 19% for Summer 2013.

Peter Long, Chief Executive of TUI Travel PLC, commented:

"We are very pleased with our trading during the Summer 2013 high season, with most of our programmes now almost fully sold. Our strong performance in the market continues to be driven by increased customer demand for unique holidays and higher levels of direct distribution.

As a result of this successful strategy, we are now confident of achieving full year underlying operating profit growth of at least 11% on a constant currency basis and are well positioned to continue to deliver on our five-year growth roadmap."

Full announcement attached.

Enquiries:

Analysts & Investors
Andy Long, Director of Strategy & Investor Relations
Tel: +44 (0)1293 645 795

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 / Kate Hoare (Hudson Sandler)
Tel: +44 (0)20 7796 4133

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