TUI Travel, one of Europe’s largest tour operators, reported an 11% increase in operating profit for the fiscal year ended Sept. 30. Operating profit rose to $735 million.

"Our customers’ behavior has demonstrated that even against a backdrop of reduced consumer confidence, the main summer holiday is an essential expenditure," CEO Peter Long said in the company’s earnings release.

Revenue was relatively flat, decreasing from $23.1 billion to $23 billion.

TUI’s U.S. division reported a 25% increase in underlying operating profit, to $25 million. TUI said that its private jet business performed well, offset by a softer market in escorted tours.

Demand for adventure tours in North America fell in 2009, while TUI’s student division grew, said the company.

TUI said it is on track to reduce costs by $332 million by 2011, having reduced $200 million in costs to date and anticipating a further $100 million in cost reductions in 2010 attributable to synergies among its merged businesses.

In the last year, TUI completed 12 acquisitions, including two U.S. businesses: Zegrahm Expeditions, an adventure cruising company, and Travel Adventures, a student travel company.

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