TUI is struggling with low bookings, Ryanair brings hope to the travel industry!

TUI is struggling with low bookings, Ryanair brings hope to the travel industry!

The TUI Group is currently in an exciting environment, despite challenges in booking dynamics. On May 20, 2025, TUI announced that late travel bookings this year were impacting the company's strategy. A recent analysis of finanzen.ch shows that consumers' hesitant booking behavior and the late Easter date had a negative impact on business figures.

Solid results were presented in the quarterly report presented in mid-May, but these were clouded by late bookings and the lack of sales from the Easter holidays in the winter half of the year. Travelers in Europe appear to be booking their summer trips later than in previous years, which is having a negative impact on sales. Ryanair, after all a competitor in the holiday travel sector, also reported a decline in profits, but remains optimistic for the coming months. Company boss Michael O'Leary expects ticket prices to rise in the first quarter of the current financial year due to the Easter holidays.

Encouraging business figures and outlook

Despite the challenges, TUI reports positive developments from the first financial quarter of 2025, which covers the months October to December 2024. Loud TUI Group The company welcomed 3.7 million guests during this period, an increase of 6 percent compared to the previous year. Sales grew by 13 percent to 4.9 billion euros and adjusted group EBIT improved to 51 million euros, which represents a significant increase compared to 6 million euros in the previous year.

Particularly noteworthy is the Hotels & Resorts division, which achieved a record result of 150.3 million euros. The Cruises segment increased its adjusted EBIT to 48.2 million euros. TUI Musement, the experience offering division, sold 2.3 million experiences, an increase of 12 percent. This shows the strong demand for holiday experiences, even during challenging times.

Regional differences and price dynamics

While the Central region (Germany, Austria, Switzerland, Poland) reported a positive result of 7 million euros, other regions struggled with losses. The North region (UK, Ireland, Nordic countries) recorded a negative result of -88.5 million euros, while the West region (Netherlands, Belgium, France) improved to -44.0 million euros.

In addition, the average prices for winter 2024/25 and summer 2025 show that they are each 4 percent higher than the previous year. TUI plans to increase the number of available passenger days by commissioning new ships to meet the growing needs of holidaymakers and strengthen its market position.

The outlook for the full year 2025 is for an increase in sales of 5 to 10 percent, supplemented by an increase in adjusted EBIT of 7 to 10 percent. TUI is given a BB rating and stable outlook by Fitch, reflecting a return to pre-pandemic levels.

Overall, TUI remains optimistic in its outlook, despite the short-term challenges. The success figures from the first quarter indicate that there are opportunities for improvement and stabilization in the travel industry, which also benefited the company's share price.