Arguably today’s better figures were signposted yesterday, after easyJet revealed an increase in its monthly passenger figures and InterContinential Hotels Group announced a jump in half-year numbers.
TUI Travel’s third-quarter figures have been strong enough for the company to raise its year-end target to 10% profit growth. The company has already seen 84% of its summer holidays sold after a 4% increase in bookings. In the last few weeks the eurozone has seen an impressive pick-up in weather conditions and this will have helped the industry.
Although a bit early to call, it also appears that we are at the beginning of the end of the ‘staycation’ mentality that has been prevalent among Europeans over the last few years. This more optimistic outlook by the holidaying population is highlighted by the fact that TUI has already seen bookings covering 21% of its 2013/14 winter holiday packages.
One of the issues that has plagued travel operators over the last couple of years has been their cash balance books, however TUI Travel does not appear to be suffering from a problem here, having an extra £198 million of operational cashflow compared to this time last year.