T
ravel agent Tui has revealed it’s anticipating a 25 million euro (£21 million) hit from wildfires in Rhodes final month, regardless of saying the blazes and heatwave sweeping throughout components of Europe solely “temporarily” dampened demand for holidays.
The Germany-based airline and bundle vacation group mentioned there might be in depth prices for cancellations and misplaced enterprise, compensation for patrons, and repatriation flights.
It evacuated 8,000 visitors from Rhodes after wildfires broke out final month, with round 5% of all its flights going to the Greek island in the summertime.
But it burdened that 80% of its visitors there have been unaffected.
The occasions solely affected demand within the brief time period, with bookings for the final week 5% greater than the equal interval final yr, it mentioned.
“For the customer it has once again been shown that the package tour booked with the tour operator offers great advantages and comprehensive service in extraordinary situations”, Tui mentioned.
The monetary influence might be mirrored within the agency’s full-year outcomes.
The group revealed it swung to a third-quarter revenue for the primary time for the reason that starting of the pandemic.
Sales jumped as common promoting costs surged by greater than 1 / 4 in contrast with summer time 2019, and seven% greater than final yr.
Tui mentioned the value will increase mirror the recognition of summer time holidays and its clients’ continued willingness to prioritise spending on journey and experiences.
The agency reported underlying group earnings earlier than curiosity and tax of 169 million euros (£145 million) within the third quarter, up from a lack of 27 million euros (£23 million) this time final yr.
Revenues surged by 19% to five.3 billion euros (£4.6 billion) and summer time bookings have been 6% greater in contrast with final yr, because of extra bookings and better costs.
Total bookings are about 95% of pre-pandemic ranges, Tui mentioned.
The heatwave in northern Europe in June and the wildfires in southern Europe have solely dampened briefly the beforehand sturdy improvement – however total will probably be an excellent journey summer time and a very good yr for Tui in 2023
Chief govt Sebastian Ebel mentioned: “Summer 2023 is going very well and demand for holidays remains high.
“The Mediterranean remains the most sought-after destination for summer holidays.
“The heatwave in northern Europe in June and the wildfires in southern Europe have only dampened temporarily the previously strong development – but overall it will be a very good travel summer and a good year for Tui in 2023.
“For the full year we continue to expect a significant year-on-year increase in underlying earnings before interest and tax (EBIT).
“We are investing today to continue to significantly grow profitably in the future.”
