The travel company TUI is optimistic about the full year and is particularly relying on the hotel sector, which is benefiting from strong price increases. In early April, TUI's stock returned to Frankfurt after nearly ten years of primary listing in London. This focus on Frankfurt is expected to bring cost savings and enable a quick inclusion in the MDAX, which could lead to rising prices.

The positive news was confirmed by CEO Sebastian Ebel in mid-May when presenting the balance sheet for the winter half-year (October to March): "We see that the summer is going very well," said Ebel. Already 60 percent of the summer offerings have been sold. It is noteworthy that customers are not skimping on vacations but are spending an average of four percent more than the previous year.

Discounts are hardly to be expected – on the contrary, travel prices continue to rise. TUI hopes to benefit from this and increase its annual revenue by at least ten percent, while the adjusted operating profit (adjusted EBIT) is expected to grow by at least 25 percent.

The prices, which have already increased significantly over the past two years, will continue to rise according to this trend. TUI Germany CEO Stefan Baumert told the "Handelsblatt" on the sidelines of the industry meeting Foro Hosteltur in Madrid that average prices for the summer are expected to increase by four percent compared to the previous year. Baumert also anticipates further price increases for the coming year.

A significant driver of these price increases is high inflation. But that's not the only reason, as reported by "Handelsblatt." Hoteliers are taking the opportunity to maximize their profits, leading to an increase in hotel prices. According to the industry association Exceltur, hotel prices rose by 8.4 percent by February compared to the previous year. High demand enables hoteliers to make these price increases, as the desire for vacations remains high following the Corona pandemic.

The hotel sector represents a strategic growth area for TUI. After 41 new hotels - primarily in the high-margin four-star segment - were added to the growth pipeline in the past fiscal year, TUI now operates around 400 hotels. Medium-term, this number is expected to rise to 600 hotels, as reported by 'The Shareholder'.

TUI thus seems well positioned to benefit from positive market developments and to continue generating growth.