http://www.tuitravelplc.com/

TUI Travel is one of the world’s leading leisure travel groups, with over 220 trusted brands in 180 countries and more than 30 million customers.

‘Making travel experiences special’ underpins everything we do and keeps our focus on providing the unrivalled choice, professionalism and confidence our customers and stakeholders can rely on, now and in the future.

Our business is grouped into three sectors, comprising many of the best loved and market-leading travel brands worldwide – Mainstream, Accommodation & Destinations and Specialist & Activity. From the most popular holiday brands to an unparalleled collection of specialist travel providers, we offer the breadth and depth of experiences and expertise for every conceivable type of traveller.

We are a truly global business, employing approximately 55,000 people and operating in 31 key source markets worldwide. As a dynamic, influential company we are committed to responsible leadership in the travel sector. Our head office is in the UK and TUI Travel PLC is listed on the London Stock Exchange as a member of the FTSE 100 and FTSE4Good indices with the ticker code TT.

Broker snap: TUI Travel's valuation 'too generous', says Panmure Gordon
Fri 01 Feb 2013


LONDON (SHARECAST) - Panmure Gordon has kept its 'sell' rating for travel and leisure firm TUI Travel ahead of its first-quarter results next week on concerns over current trading.

"We believe current trading is strong reflecting the tailwind of 2012 being the wettest year on record in England, but still see headwinds in continental Europe," the broker said.

Analysts highlighted research which suggests that 40% of UK consumers intend on spending less on holidays abroad in 2013.

"We also have concerns around rising fuel prices, a weak macroeconomic backdrop in the group’s major markets and note the problems with the Dreamliner aircraft the group has made significant investment in."

The shares are trading at 10.7 times 2013 current-year earnings and while this is a sharp discount to sector peer Thomas Cook (also rated 'sell'), Panmure said the valuation is "still too generous" given the stock's five-year average forward price-to-earnings ratio of 8.8.

The broker said that last month's called-off bid approach from parent company TUI AG highlighted that it "does not want to pay a premium for control of this minority".

Panmure has maintained a 245p target price for the shares, implying around a 16% potential downside to current prices.

Nevertheless, shares were up 1.38% at 294.8p by 10:30 on Friday.

Friday brings us a first-quarter update from TUI Travel . While fellow high-street travel agent Thomas Cook (Xetra: A0MR3W - news) was just about escaping insolvency by the skin of its teeth, TUI Travel managed to weather the storm without harm to its dividend, and has emerged strongly with a couple of years of earnings growth.

With the shares on 295p, the latest analysts' consensus for the year to September puts them on a P/E of under 11, with a 4.2% dividend yield expected. News (NasdaqGS: NWS - news) on the important winter booking season will be keenly awaited.

1st Quarter Results

· Outperformance in UK & Nordic markets

· Our unique holidays driving increases in UK market share

· Q1 underlying operating loss reduced by 15%1

· Expect performance towards the top end of roadmap guidance for full year2



Highlights

· Positive trading momentum

- Operating loss reduced by £16m to £93m (excluding the impact of empty leg accounting1 which has no full year impact). Underlying Q1 operating loss of £116m (2012: loss of £109m).


- Significant continued growth in UK cumulative market share (GFK Ascent) with Summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.


- Strong trading in the Nordic region and Accommodation Wholesaler.

· Unique holidays and direct distribution strategies delivering

- Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for Summer 2013.


- Direct distribution sales in the UK and Nordics for Summer 2013 of 90% (2012: 89%) and 85% (2012: 84%) with online sales accounting for 37% (2012: 36%) and 65% (2012: 63%) respectively.

· Online Accommodation growth

- Accommodation Wholesaler continues to build a global leadership position with TTV up by 9% for Summer 2013, driven by Latin America and Asia where TTV is up by 23%.

· Strong current trading

- Winter 2012/13 - 83% sold with higher margins and average selling prices in key source markets.

- Strong Summer 2013 bookings in the UK and Nordics, up 9% and 10% respectively.


- Summer 2013 margins ahead of prior year in key source markets.

TUI Travel: Bank of America takes price target from 335p to 355p, while its buy recommendation is unchanged

TUI Travel: Barclays shifts target price from 320p to 325p and keeps an overweight rating. Deutsche Bank takes price target from 265p to 275p leaving its hold recommendation unaltered.

TUI Travel: JP Morgan shifts target price from 320p to 350p reiterating an overweight rating.

Broker snap: Panmure Gordon upgrades TUI Travel to 'hold'
Fri 15 Feb 2013

TT. - TUI Travel

Latest Prices
Name Price %
TUI Travel 318.30p +0.51%

FTSE 100 6,347 +0.30%
FTSE 350 3,405 +0.31%
FTSE All-Share 3,337 +0.30%
Travel & Leisure 5,869 +0.25%

LONDON (SHARECAST) - Panmure Gordon has raised its rating for travel and leisure group TUI Travel from 'sell' to 'hold', saying that there are now few catalysts for the stock to underperform.

Nevertheless, the broker reiterated its cautious view on the macroeconomic environment "with most source markets suffering challenging economic conditions combined with rising fuel costs".

Meanwhile, a weakening pound could also affect accommodation costs in the UK market next year which would put pressure on margins.

"However the group is outperforming operationally, free cash flow generation is improving and with renewed effort from TUI AG to optimise the corporate structure of the two companies we see few catalysts for the stock to underperform," Panmure said.

In regards to the corporate structure, the broker highlighted comments from outgoing Chief Executive Officer Michael Frenzel who said that the doubled structure of TUI Travel and parent TUI AG (which owns 56.4%) is not optimal and synergies could be realised from a simpler structure.

Panmure has raised its current- and forward-year earnings per share forecasts by 2-3% to reflect TUI Travel's stronger first quarter performance (announced last week) and solid booking trends for the remainder of Winter 2012/13 and Summer 2013 in the UK and Nordics.

As such, the target price has been lifted from 245p to 303p.

Shares were up 0.6% at 318.6p by 10:09 on Friday.

Thomson hit by Dreamliner delays
By Nathalie Thomas | Telegraph – 2 hours 23 minutes ago.. .


Holiday giant Thomson has been forced to downgrade passengers who had paid extra to travel on a Boeing (NYSE: BA - news) 787 Dreamliner this summer to alternative aircraft as problems persist with the flagship jets.

Thomson Airways, part of the FTSE 100 (FTSE: ^FTSE - news) group TUI Travel (LSE: TT.L - news) , had last month been due to receive the first of eight Dreamliners it had on order from Boeing, followed by a further three by the end of May.

The holiday company had planned to start its first Dreamliner flights to destinations such as Cancun in Mexico and Florida in May but has been forced to switch customers to different planes after Boeing was not able to confirm a delivery date.

Boeing’s Dreamliner fleet has been grounded for seven weeks following several incidents involving the aircraft’s lithium-ion batteries. The batteries are currently the subject of an investigation by the US National Transportation Safety Board (NTSB), a federal agency, which will publish its interim findings by March 9.

Thomson will downgrade customers to a 767 long-haul aircraft and will refund the supplement holidaymakers had paid to fly on one of its first Dreamliner flights. Customers will also have a choice to change their holiday without any amendment fees.

“We understand how frustrating and disappointing this news will be for those customers looking forward to flying on the 787 Dreamliner, we are equally as disappointed that Boeing was not able to confirm a delivery date for us but unfortunately these circumstances are out of our control,” the group said in a statement.

A spokeswoman for Thomson would not comment on whether the group is seeking compensation from Boeing. TUI Travel, which also owns the First Choice brand, had ordered 13 Dreamliner aircraft in total.

Boeing said: “We deeply regret the impact the recent events have had on Thomson’s upcoming schedule and their customers.”

The NTSB launched an investigation following a battery fire on a 787 operated by Japan Airlines in January while it was parked at Boston Logan Airport.

MIDAS SHARE TIPS: Holiday group TUI aims for 10 per cent a year profit rise, as families take advantage of package breaks




By Joanne Hart, Financial Mail On Sunday

PUBLISHED:22:20 GMT, 9 March 2013| UPDATED:22:20 GMT, 9 March 2013


As Thomas Cook cuts 2,500 jobs and closes stores, rival TUI Travel, Britain’s leading holiday group, is having a strong start to the year and its shares have long-term potential.

TUI Travel was formed in 2007 from the merger of First Choice Holidays and German business TUI Tourism. The company is one of the largest travel groups in the world, with about 30million customers annually, and more than 240 brands, including Thomson, Sovereign Luxury Travel, Hayes & Jarvis and LateRooms.

For many people, package holidays conjure up visions of scantily clad youngsters drinking too much lager, making too much noise and generally behaving badly. But many of TUI’s customers are over 50 and its family groups tend to include older children rather than younger ones.




Affordable: TUI prides itself on all-inclusive trips, so families know their exact costs before travelling

The company has also adopted a policy of exclusivity, so 90 per cent of its holidays are available only through TUI brands.

The strategy, developed by chief executive Peter Long, seems to be working well and TUI is focusing on growth. Long intends to deliver an increase in underlying profits of seven to ten per cent a year between now and 2018 and only last month said that he expected this year’s results to be at the top of that range.

Analysts expect profits to rise from £390 million in 2012 to more than £430million for the year to September 30 with the dividend increasing from 11.7p to 13p. Next year, profits of at least £465 million are forecast, alongside a dividend of 14p.




More...
SHARE PRICE: TUI Travel PLC
More than half of parents happy to take children out of school during term time to save on holiday costs


Holiday industry experts have been predicting the demise of the package holiday for years, particularly since low-cost airlines such as Ryanair and easyJet began to offer cut-price flights. The economic downturn was also expected to hit the sector hard.

However, TUI’s customer numbers have been growing. A series of disappointing summers have made even cash-strapped consumers determined to head for the sun and many see a package as the most cost-effective way to go. TUI prides itself on all-inclusive trips so customers know exactly what they will spend before they step onto a plane. The group’s scale also means it can secure attractive rates with hotels.

Most of TUI’s customers come from Britain, Germany and Scandinavia, but the group has sizeable operations in Belgium, Holland and France as well. Over time, Long hopes to add more customers from those countries, encourage them to spend more of their holiday money with TUI and attract customers from emerging markets, particularly Russia and other cold Eastern European states.

The group has already taken 600,000 Russians to places such as Turkey and Egypt and expects strong growth from the country as consumers become wealthier.

TUI still has 1,800 travel agencies across Europe but around half of its business is now sourced online and that percentage is likely to increase. However, there are still millions of people who prefer to book their summer holidays face to face, so the retail chain remains important.

Midas verdict: TUI shares have had a good run lately, but there is plenty more mileage in the stock. The group’s holidays range from sun in Spain to hiking in the Himalayas to Arctic cruises, so most needs are catered for at prices that millions of consumers can afford. Long has a clear strategy and he has shown he can deliver. The shares, which closed on Friday at 309p, are a buy.

In its next trading update, due on Wednesday, TUI Travel will issue its first half pre-close trading update. Panmure Gordon expects a particularly strong performance in the UK, reflecting the on-going cold and wet weather.

The broker is forecasting £533m in EBITA for fiscal year 2013, broadly in line with consensus, rising to £581m next year.

TUI Travel names Friedrich Joussen as chairman
StockMarketWire.com
TUI Travel said, in accordance with a relationship agreement between it and TUI AG, non-executive chairman Michael Frenzel has stepped down, and has been replaced by Friedrich Joussen.

The change would take place with immediate effect. Joussen had earlier replaced Frenzel as CEO of TUI AG.

Further, Sebastian Ebel, Director of Planning at TUI AG, will join the Board as a Non-Executive Director with immediate effect.

At 9:51am: (LON:TT.) share price was -0.45p at 310.55p

Wednesday's agenda: TUI Travel to provide ray of sunshine
6:30 pm by John Harrington



TUI travel (LON:TT.) will report its pre-close trading update on Wednesday and it is a fairly safe bet it will be sitting prettier than perennial rival Thomas Cook.

Having said that, Thomas Cook recently reported that the trading environment remains solid and that its margins for the summer were improved, which bodes well for TUI travel.

"Our channel checks suggest the trend of good demand for premium holidays has remained, which benefits TT’s unique holiday concept," Morgan Stanley said in a note last week.

"We expect TUI travel to confirm it is on track to meet recently upgraded guidance on a constant currency basis," the US bank said.

Trading Update

Highlights

· Modern Mainstream driving trading momentum


- Winter 2012/13 programme ending strongly with improved margins and average selling prices across key source markets.


- Very strong trading momentum continuing into Summer 2013:


- UK and Nordic bookings up 9%, with higher margins.


- Maintaining cumulative market share increase of four percentage points over the prior year in the UK (GFK Ascent).

· We continue to execute on our proven strategy


- Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 12% and 9% year-on-year respectively for Summer 2013.


- Direct distribution sales in the UK and Nordics for Summer 2013 of 90% (2012: 90%) and 86% (2012: 85%).


- Online sales account for 40% (2012: 39%) in the UK and 67% (2012: 65%) in the Nordics.


- Business improvement programme progressing to plan.

· Online Accommodation growth


- Accommodation Wholesaler continues to build a global leadership position with TTV up by 10% for Summer 2013, driven by Latin America and Asia where TTV is up by 19%.

TUI Travel: Numis increases target price from 310p to 350p and upgrades to add.

Panmure Gordon has maintained a 'hold' rating for travel leisure firm TUI Travel, saying that while the first half was strong, shares are fully valued.

The stock is trading at 11.1 times estimated 2013 earnings, in line with the market. Historically, the broker said that tour operator usually trade between a 25% discount and in line with the market and normally underperform over the April to September period.

:-))

A buy in this weeks shares mag - Interim results 10 May, do not be surprised if Tui Travel (TT.) presents vintage summer holiday bookings figures for 2013. After a bleak summer and a positively Baltic winter of discontent that lasted well into April in the UK. A prospective yield of 4.0% on a dividend more than twice covered also catches the eye. A PE of 11 times is not unduly expensive for a stock forecast to grow earnings by 8% this year and 9% next.

Is Now The Time To Buy TUI Travel PLC?
Fool.co.ukBy Rupert Hargreaves | Fool.co.uk – 4 hours ago...



I'm always searching for shares that can help ordinary investors like you make money from the stock market.

So right now I am trawling through the FTSE 100 (FTSE: ^FTSE - news) and giving my verdict on every member of the blue-chip index. Simply put, I'm hoping to pinpoint the very best buying opportunities in today's uncertain market.

Today I am looking at TUI Travel (LSE: TT.L - news) to determine whether you should consider buying the shares at 316p.

I am assessing each company on several ratios:

Price/Earnings (P/E): Does the share look good value when compared against its competitors?

Price Earnings Growth (PEG): Does the share look good value factoring in predicted growth?

Yield: Does the share provide a solid income for investors?

Dividend Cover: Is the dividend sustainable?

So let's look at the numbers:
Stock Price 3-yr EPS growth Projected P/E PEG Yield 3-yr dividend growth Dividend cover

TUI Travel 316p 36% 11.4 1.6 3.7% 6% 2.2

The consensus analyst estimate for this year's earnings per share is 27.6p (7% growth) and dividend per share is 12.6p (8% growth).

Trading on a projected P/E of 11.4, TUI (Xetra: TUAG00 - news) appears cheaper than its peers in the travel and leisure sector, which are currently trading on an average P/E of around 20.

TUI's P/E and high single-digit growth rate give a PEG ratio of around 1.6, which implies the share price is slightly expensive for the near-term earnings growth the firm is expected to produce.

Offering a 3.7% yield, TUI's dividend yield is above the sector average of 2.4%. In addition, TUI has a three-year compounded dividend growth rate of 6%, implying the yield will continue to rise above that of its peers -- albeit slowly.

Indeed, the dividend is more than two times covered by earnings, giving TUI plenty room for further payout growth.

So, is now the time to buy TUI Travel

TUI Travel is one of the world's leading leisure and travel companies, with more than 240 brands covering 180 countries. Indeed, it is this market-leading position and geographical diversification that leads me to believe that TUI is currently undervalued.

You see, while TUI's main peer, Thomas Cook (Xetra: A0MR3W - news) , struggles with falling sales due to the economic environment, TUI's geographical diversification has allowed the company to continue growing, despite falling sales in some of its key markets.

In particular, within the company's most recent trading update, TUI announced that while its sales of winter holidays to French customers had fallen 25%, sales of holidays to customers in the UK and Nordic (SES: E2:MR7.SI - news) regions had offset the entire decline and overall, sales grew by 2%.

Furthermore, TUI reported within the same statement that group sales of summer holidays for 2013 had expanded 7%, with growth underpinned once again by double-digit sales growth to customers in the UK and Nordic regions.

So overall, based on TUI's low relative valuation, continuing growth and solid dividend yield, I believe now looks to be a good time to buy the shares at 316p.

TUI Travel PLC (TT.:LSE) set a new 52-week high during Tuesday's trading session when it reached 338.40. Over this period, the share price is up 84.50%.

Interim Result

10 May 13 TUI Travel PLC [TT.]