Tui hails record profits as holidays remain a ‘top priority’ for consumers

Tui has cheered record profits thanks to strength in its cruise division, but the holiday group has warned its growth will slow next year.

The German travel giant posted a 12.6 per cent rise in underlying earnings on a constant currency basis to close to £1.3billion, following a record performance in its cruise business.

Tui, which is Europe’s biggest tour operator, runs voyages in the Caribbean and Mediterranean as well as around the Canary Islands and is popular among British holidaymakers.

Revenues rose 4.4 per cent to £22.2billionn as 34.7 million holidaymakers booked with it in the year to 30 September.

It said that ‘holidays were once again the top priority for consumers in the 2025 financial year’ but echoed rivals in caution for the year ahead.

The firm said it was taking into account ‘prevailing macroeconomic and geopolitical uncertainties’ with a forecast for revenues to rise between 2 and 4 per cent in the current financial year.

But it said booked sales for the winter season were 1pc higher than previous year while it had seen a ‘positive start to summer 2026’.

Holiday companies have insisted consumers are still keen to go abroad despite cost pressures

Popular destinations for next year include Greece, the Balearics and Turkey, it said.

And it announced that dividend payments will return next year with an initial reward of €0.10 per share.

Tui chief executive Sebastian Ebel said his reading of consumer sentiment would depend on the ‘important’ New Year period, when many people look to make holiday bookings.

The group is pinning its hopes on boosting its presence on artificial I=intelligence programs such as ChatGPT.

Ebel said: ‘Artificial intelligence is a great opportunity for TUI.

‘Customers such as travel agencies can already use AI to plan complex round trips and transfer customers directly to a booking via a TUI button.’

As the group set out plans to save £219million by 2028, Ebel insisted there was a ‘big difference in having less jobs and cutting jobs’.

It comes as rivals have said consumer demand for holidays is still strong despite pressures on living costs.

But there have been warnings over passengers’ discretionary income with the boss of rival Jet2 warning that taking flights abroad could become ‘something for the rich and privileged’ if the sector keeps being treated like a ‘cash cow’ by governments.

And yesterday Willie Walsh, the former boss of British Airways who is now director general of the International Air Transport Association (IATA), said Britain has become ‘hooked’ on high taxes.

He highlighted hikes in air passenger duty (APD), which typically leads to higher ticket prices.

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