Home » TRAVEL NEWS » UK, Greece, Egypt, Spain, Mexico, Thailand, Turkey, Germany, UAE, And More Drive TUI’s Strong Profitability And Leading Summer Travel Demand
Published on
September 24, 2025
UK, Greece, Egypt, Spain, Mexico, Thailand, Turkey, Germany, UAE, and other popular destinations have been key drivers behind TUI’s strong profitability and leading summer travel demand. Despite facing challenges such as market competition and geopolitical tensions, TUI has successfully capitalized on steady demand and higher prices, particularly in these sought-after regions. The company’s ability to maintain high booking levels and profitability highlights the continued appeal of these destinations, which have become favorites among travelers seeking both short- and long-haul experiences. TUI’s solid performance this summer is a testament to the resilience of the travel sector and the enduring popularity of key markets across Europe, Asia, and beyond.
Europe’s largest tour operator, TUI, has reaffirmed its financial targets for the upcoming fiscal periods, citing sustained demand and increased prices as key factors in offsetting the challenges of market competition, summer heatwaves in major tourist destinations, and ongoing geopolitical tensions in the Middle East. The company’s latest update, issued just before the close of its 2025 fiscal year, which concludes on September 30, provides an in-depth overview of its performance during the peak travel season and its outlook for the coming months.
Summer Season Performance
In its recent announcement, TUI revealed that booking levels for the summer season remained steady compared to the beginning of the year. The company served a total of 14.1 million customers during the summer period, a figure that includes 1.4 million bookings for off-season travel. While bookings for organized vacation packages fell by 2% compared to the 2024 summer season, one of TUI’s major markets experienced a decline of 5%, while another saw a modest 1% increase. The company noted that the overall stability in bookings during a challenging market environment signals continued demand for travel despite various factors working against the industry, including intense competition and political instability in key markets.
Despite the slight dip in package bookings, TUI highlighted that average prices for travel packages rose by 3%, reflecting the continued demand for premium services and more expensive travel options. This price increase indicates that travelers are willing to spend more for higher-quality experiences and destinations, signaling that the industry remains resilient despite external challenges.
Popular Destinations
When it comes to short- and medium-haul travel, destinations such as Greece, Turkey, the Balearic Islands, and the Canary Islands remained the most popular choices for holidaymakers. These regions continued to attract large numbers of tourists throughout the summer. However, one emerging destination, which has recently gained traction as a value-driven option, saw significant growth, indicating that more travelers are seeking affordable holiday alternatives. This trend is in line with the broader shift towards cost-effective travel in the wake of increasing travel prices.
On the long-haul side, TUI noted that Mexico and the Dominican Republic were the top destinations for travelers seeking international vacations. Both of these locations have seen an uptick in demand in recent years. Other long-distance destinations, including Thailand, the UAE, and Zanzibar, also reported notable growth, further emphasizing the shift towards diverse and exotic locations for travelers willing to venture beyond traditional holiday spots.
Financial Outlook
As TUI moves towards the close of its fiscal year, the company has confirmed its financial forecast, predicting a 5-10% increase in revenue for 2024, with a target of reaching €23.2 billion. The company also expects its adjusted EBIT (earnings before interest and taxes) to grow by 9-11% from €1.3 billion in the previous year. In addition to these revenue targets, TUI anticipates a slight improvement in its net borrowing, with an estimated figure of €1.6 billion for fiscal year 2024.
Looking further ahead, TUI has outlined its long-term financial goals. The company aims for a Compound Annual Growth Rate (CAGR) of 7-10% in underlying EBIT, while maintaining a net debt ratio of below 1.0x. These ambitious targets reflect the company’s commitment to both expanding its revenue base and improving its financial health in the coming years, which is vital in an industry marked by volatility and changing market conditions.
Winter Travel Trends
Turning to the upcoming winter period, which forms the first half of TUI’s fiscal year (October to September), the company has seen a positive trend in early bookings, which are currently 1% higher than last year’s levels. The Canary Islands, Egypt, mainland Spain, and Cape Verde have emerged as the most sought-after winter destinations. These regions are known for their year-round appeal, offering warm weather and a variety of vacation options. Meanwhile, in the category of long-distance travel, Thailand is experiencing the highest growth, with many travelers opting for its tropical climate and diverse range of holiday experiences.
Expansion Plans
TUI is also expanding its hotel and cruise offerings in response to the growing demand for quality travel experiences. The company has increased its hotel capacity by 5% for the first half of fiscal year 2026, a move that reflects its confidence in the continued growth of the travel and hospitality sector. This expansion includes both new hotel openings and upgrades to existing properties, further enhancing the range of options available to travelers. The average daily rate for TUI hotels is also on the rise, with a 6% increase projected for the first half of the next fiscal year, following a 7% rise in the most recent quarter.
In addition to hotel capacity, TUI has expanded its cruise fleet. After adding a new ship in March, TUI now operates 18 cruise ships, all of which are fully operational. This expansion is part of the company’s broader strategy to increase its presence in the cruise industry, which has shown strong growth in recent years. The addition of new ships helps meet the growing demand for cruise vacations, particularly in destinations that are less accessible by air.
Tour and Activity Expansion
TUI’s Musement division, which handles its tour and activity business, continues to expand its offerings. The company is focusing on increasing the number of experiences available to both business-to-consumer (B2C) and business-to-business (B2B) customers. This expansion aims to cater to the growing demand for immersive travel experiences, which have become increasingly popular among modern travelers seeking to connect with local cultures and environments during their vacations.
UK, Greece, Egypt, Spain, Mexico, Thailand, Turkey, Germany, and UAE have driven TUI’s strong profitability and leading summer travel demand, thanks to sustained popularity and higher prices in these key destinations despite external challenges.
TUI is entering the final stages of its fiscal year with a positive outlook, bolstered by strong performance in key markets and ongoing expansion in both its hotel and cruise offerings. As the company looks to the future, its focus on sustaining growth, expanding its service offerings, and maintaining a solid financial position will help ensure its continued success in an increasingly competitive and dynamic travel market.
