Tui Travel boosted by late summer bookings

| October 5, 2010 | 0 Comments
Tui Travel boosted by late summer bookings

Tui Travel has provided an encouraging update today, providing a boost to investors with a 4.2% rise in its share price following the announcement.

The company, which is the owner of Thomson, said UK bookings had risen by 5%, while the Nordic region experienced a 16% increase.

The company said it had benefited from the demise of many smaller travel companies and airlines this year, with holidaymakers opting to book their trips with a bigger tour operator.

The announcement is a marked turnaround after the company issued a profit warning in August but it appears late summer bookings have provided a much needed boost to the company, and the sector.

Last week, rival Thomas Cook warned that operating profits would be hit and job losses were inevitable.

Meanwhile, Tui Travel also said that net debt will be lower than previously estimated, due to strong working capital.

The recession, and more recently the disruption due to the volcanic ash, has had a major impact on tour operators and airlines, with many going bust.

Just yesterday, it was announced that Crown Currency Exchange had been placed into administration.

The company, which is one of the UK’s largest foreign exchange websites, said the collapse was attributed to the downturn in the travel industry.

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