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.

TUI Travel signs new credit facility

Mon, 01 July 2013



TUI Travel has signed of a new medium-term £300m bank credit facility, maturing in April 2016.

The leisure company said the funds would be used to strengthen its capital structure and underpins its debt maturity profile over the coming years.

The transaction was co-ordinated by the Royal Bank of Scotland and involved a syndicate of the company's banks.

Covenants remain in line with those provided under the existing bank facilities.

Will Waggott, Chief Financial Officer, said: "We are pleased to have agreed this new credit facility which will improve the flexibility and strength within our capital structure and demonstrates the continued strong support for the group from our banks."

Result of Meeting

http://www.moneyam.com/action/news/showArticle?id=4629010

TUI Travel aircraft acquisition approved

StockMarketWire.com

Travel operator TUI Travel (TT.) announces that, at the General Meeting held on 9 July 2013, the resolution for the proposed purchase of Boeing Aircraft, as set out in the Notice of Meeting dated 14 June 2013, was duly passed on a poll.

At 12:06pm: (LON:TT.) share price was +0.55p at 374.25p


Story provided by StockMarketWire.com

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 379.90. Over this period, the share price is up 121.14%.

26 Jul Morgan Stanley 320.00 Equal weight

Interim Result


07 Aug 13 TUI Travel PLC [TT.]

1 Aug Deutsche Bank 335.00 Hold

2 Aug Morgan Stanley 320.00 Equal weight

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 390.50. Over this period, the share price is up 105.19%.

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 401.50. Over this period, the share price is up 106.64%.

Wednesday's agenda: TUI Travel to make a splash
By John Harrington
August 06 2013, 6:48pm
Attention at TUi Travel will focus on current booking patterns and outlook commentsAttention at TUi Travel will focus on current booking patterns and outlook comments


Travel operator TUI travel may be in competition with Thomas Cook but it will have been heartened by its competitor's recent update, which showed that cold weather in Northern Europe earlier this year boosted holiday bookings, though the recent heat wave may have taken the shine off this uplift somewhat.

Morgan Stanley forecasts underlying earnings (EBIT) of £80mln, "once we adjust for the change in accounting of empty legs (-£10m) and the shift in Easter to March (-£11m)".

"GfK reported that by mid-June package holiday bookings in the UK were +4% in a leisure outbound market -2% overall, so while comps are getting tougher (lates market was very strong last year due to cold weather), it seems like package holiday sales remain strong.

"In Germany, GfK reported summer holiday package holiday sales +6% as of May, and TUI Germany’s CEO said sales had continued to improve since the H1 results, with strong bookings for beach destinations and weaker for local or nearby holidays, which are lower margin," Morgan Stanley said.

3rd Quarter Results

Third Quarter Results ended 30 June 2013 and Interim Management Statement

· Strong demand across key markets
· Demand for our unique holidays continues to grow
· Q3 underlying operating profit up by 18%1
· Very confident of achieving full year underlying operating profit growth of at least 10%2
· Well positioned to continue to deliver our five year growth roadmap.


Highlights

· Q3 Results

- Operating profit improved by £13m to £87m (excluding the impact of empty leg accounting1 which has no full year impact) despite an £11m impact from the timing of Easter. Underlying Q3 operating profit of £76m (Q3 2012: £74m).

- Continued market outperformance in the UK with strong margins, load factors and capacity growth.

- Strong trading in the Nordic region and Accommodation Wholesaler.

- Business improvement programme progressing to plan with £11m of cost savings delivered.

- Operational cashflow improvement of £198m in the third quarter compared with the same period last year.

· Sustained growth in demand for unique holidays

- Unique holiday bookings in the UK, Nordics and Germany increased by 14%, 11% and 9% year-on-year respectively for Summer 2013.

- Direct distribution sales in the UK and Nordics for Summer 2013 of 91% (2012: 90%) and 88% (2012: 87%) respectively.

- Online sales account for 47% (2012: 45%) in the UK and 69% (2012: 68%) in the Nordics.

- MyThomson mobile app launched into Apple App Store in June with high ratings and over 120,000 downloads to date. Develop once and roll out across all markets.

· Online Accommodation growth

- Accommodation Wholesaler continues to build a global leadership position with TTV up by 19% for Summer 2013.

· Positive current trading momentum

- Summer 2013: 84% of the overall Mainstream programme now sold.

- Strong high-season Summer 2013 trading in the UK and Nordics, revenues up 11% and 10% respectively.

- Encouraging start to Winter 2013/14 trading.

Panmure Gordon has maintained its 'hold' recommendation for travel operator TUI Travel despite strong trading in the third quarter, as it reiterated its preference for sector peer Thomas Cook.

"Whilst we believe TUI Travel is a strong operator with good long-term growth potential, in our view Thomas Cook offers more substantial upside from the improvement in underlying like-for-like trading, in addition to potential increases to cost savings targets and future dividend payments."

Numis ups target price from 375p to 400p, while downgrading to hold.

Shares today - Market report: TUI Travel experiences turbulence


On a day in which the FTSE 100 remains in the red, down 47 points to 6557.2 following falls overnight on Wall Street and in Asia, TUI Travel (TT.) tumbles the best part of 5% to 382.1p. Investors book profits after a strong share price run despite the £4.49 billion cap posting a cheery third quarter trading statement in which it flags strong demand in the UK and Nordics and growing demand for its unique holidays.

Operating profits rose 18% to £87 million in the quarter ended 30 June and with cost cutting going to plan, chief executive Peter Long is very confident of delivering underlying annual operating profits growth of at least 10%. As well as brisk high-season summer trade, Long says winter bookings for 2013/14 have begun strongly for the Crawley-based business. Highlighting the strength and resilience of the business model, Numis Securities upgrades its price target from 375p to 400p. However Panmure Gordon has a 315p price target for TUI and sticks with its ‘hold’ rating ‘based upon the stock trading at a premium to Thomas Cook (TCG), whilst holding less earnings growth potential, in our view.’

Beaufort Securities cuts TUI Travel to hold from buy

Date

Broker

New target

Recomm.


8 Aug Beaufort... N/A Hold
8 Aug Exane BNP... 350.00 Neutral
8 Aug Nomura 310.00 Neutral
7 Aug Numis 400.00 Hold
2 Aug Morgan Stanley 320.00 Equal weight
1 Aug Deutsche Bank 335.00 Hold

9 Aug Investec 400.00 Hold
9 Aug Morgan Stanley 360.00 Equal weight

Forget the fears over the euro crisis, Britons are off on a euro-break

By Sarah Bridge

PUBLISHED: 22:10, 10 August 2013 | UPDATED: 11:31, 11 August 2013


British holidaymakers are putting fears over the euro crisis behind them and returning to the debt-laden countries of southern Europe – leading to a boom-time for tour operators.

Tourists, many put off North Africa by recent political turmoil, are returning in the hope of picking up some bargains.


TUI Travel’s chief executive Peter Long said: ‘Markets such as Greece recovered really quickly and business is now strong. These countries will always be popular and now they are seen as offering great value too.’



Spain is thought to be the most popular destination among Europeans

Mark Warner, which handles about 26,000 holidaymakers every summer, says that Greece in particular is much stronger than last year. Marketing director Tim Locke said that the company, which has four of its eight resorts there, was seeing a sharp rise in bookings, especially in Rhodes and Lemnos.


‘People aren’t being put off by the financial situation and in fact demand for Greece is bigger than ever,’ he said.




Mark Warner’s financial performance last year was its best since 2006, after renegotiating contracts with airlines and hotels.


Accounts for the year to the end of October show an 11 per cent increase in turnover to £42.6 million and a profit of £395,200, compared with a loss of £225,800 the previous year. Locke expects even stronger figures this year.


Other tour operators also saw customers unfazed by Greece’s financial woes. Dudley der Parthog, a director at Sunvil Holidays, one of the longest-established tour operators to the region, estimated that revenues were up 20 per cent on last year.


‘Greece has gone back to pre-2008 levels, which is really quite remarkable,’ he said. ‘There was a toxic cocktail which meant people were put off from coming last year. But that’s led to pent-up demand which, when you factor in the problems in North Africa, means that everything is turning out much better for Greece this year.’


He added: ‘Greek bars and restaurants understand the situation so they have reduced prices and are good value – you can still enjoy a full meal with wine for 15 euros.’


Travel to Italy, Portugal and Turkey is all understood to be doing well, with Spain the most popular destination.


Visits abroad by British residents grew by one per cent over the 12 months to May 2013 and holiday spending increased by five per cent in the first five months of the year, the Office for National Statistics said last month.

INTERVIEW: Why airliner fires won’t upset TUI Travel boss’s holiday plans

By Sarah Bridge

PUBLISHED: 22:09, 10 August 2013 | UPDATED: 11:32, 11 August 2013


Peter Long, 61, wants a Dreamliner on his trip to Majorca

Millions of families across Europe will stay in a villa or hotel booked through British holiday group TUI Travel this summer, but the company’s £1.6 million-a-year chief executive will not be one of them.


Peter Long’s family will be at his private holiday home in Majorca. It’s clearly not a small place either – Long will be with wife Lin, their three sons and four grandchildren.


Long, 61, says: ‘I love going there with my family. That’s when I switch off. When I’m with my grandkids I can forget about everything else.’


In fact it has been a year to remember for TUI. Last week the group, which owns Thomson, First Choice, Sunsail and many other holiday brands, said its profits in the three months to June were up by £13 million to £87 million.


Summer holiday sales are up 11 per cent on last year and Long is predicting profits will increase by about 10 per cent for the year.


Some had predicted the good weather in Britain combined with the squeeze on families’ finances might have hit bookings. But Long argues that the summer holiday is no longer the first thing people cut to save money.


‘The market has been very resilient. People are seeing holidays as a “must” so it’s right at the top of discretionary spend,’ he says.


While Long may not be staying at a TUI hotel this summer, he will be using his own company to travel to Majorca and is hoping the family flight will be on one of Thomson Airways’ new Dreamliner super-jumbos.


TUI has been one of the early adopters of Boeing’s new flagship aircraft and Long is a huge fan. But his nerves will have been tested by the technical glitches including battery fires that have beset the plane since its launch in 2011.

Last month a Thomson Dreamliner flying to America turned back to Manchester after suffering technical problems.


Long says: ‘Yes it’s had a few teething problems, but Boeing are a global business, they’ll fix it and they are fixing it. So, fingers crossed there won’t be any more minor technical disruptions and we can just get on with enjoying it. We bought these some time ago so it gives us real competitive advantage. It’ll be fantastic if it coincides with our next trip to Majorca.’


Long firmly believes that holidays are an extremely important part of people’s lives, including his own.



TUI Travel owns Thomson, First Choice, Sunsail and many other holiday brands

‘I remember earlier this year watching my son teaching my eldest grandchild, who’s five and a half, how to ski and it was great,’ he says. ‘It was in Austria in the same place that my son learned to ski, and here he was, skiing with his own daughter. It was a great experience.’

Long says his company has a huge responsibility to its customers. ‘We are delivering the annual holiday – it’s a big event. People want to have a great time, and therefore we have to make sure they have a great time, and if there are any problems to resolve them very quickly.’


And customer service is of rising importance as much of the growth is in all-inclusive breaks. Once seen as appealing only to lager-fuelled youngsters in search of a free alcohol, the all-in holiday is more popular than ever and is appealing to a more upmarket set.





Long says: ‘There is a resurgence in all-inclusive. You can get on the plane, have no money at all, take your credit card as back-up, and you’re all set for the holiday.’


But still a handy way to have a few drinks on the cheap? Long smiles: ‘It’s not as if everyone goes out and gets blind drunk all the time. People probably drink a little too much on the first couple of days and then it all slows down, because you can’t drink like that all the time.’

With a myriad of different brands, such as Exodus for more independent travellers and Sunsail and Moorings for the sailing fans, TUI offers its 30 million customers anything from beach holidays to cruising the Greek islands or exploring the Antarctic. While the UK and Nordic markets are growing strongly, Germany and France both fell in the latest figures. TUI is also dipping its toe into emerging markets such as Russia and China, with India and Brazil on the cards, too.


TUI might be the biggest holiday company in Europe but its immediate rival, Thomas Cook, is working its way back from recent financial troubles.


Long says: ‘There’s been a lot written about our major competitor. They’re clearly on a journey of rehabilitation and I have to say, so far, well done, in terms of the reshaping the business. That can only be healthy for the industry to have strong competitors.’


Preparing the results announcement has kept Long busy in recent weeks. So much so that when we spoke he had yet to meet the latest addition to the family. He will meet his two-week-old granddaughter for the first time today.


But she is already booked to join the family in Majorca in October.

Citigroup Neutral 377.50 376.80 340.00 372.00 Reiterates

Bank of America Merrill Lynch Buy 377.50 376.80 - 455.00 Retains