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.

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

Tui Travel (LSE: TT.L - news)

Tui Travel has come a long way in the past two years, with its share price flying nearly 144%. Its Q3 results, published in August, showed an 18% rise in underlying operating profits due to strong demand across key markets. Yet the market was underwhelmed, and the share price has gone nowhere lately. I feel the market reaction was harsh, but Tui (Xetra: TUAG00 - news) has lost its blistering momentum for now. But with forecast EPS growth of 12% to 30 September 2013 and 10% the year after, I'm still tempted to hop on board.




http://uk.finance.yahoo.com/news/buy-shares-intu-properties-plc-144104607.html

TUI Travel airlines hit carbon reduction target two years early and increase it by 50%






19 Aug 2013




TUI Travel is serious about green leadership

London, 19 August 2013 – TUI Travel’s airlines have achieved their carbon reduction target of 6% two years early. This reduction was achieved through a mixture of operational efficiencies, fuel conservation activities, capacity amendments and airline enhancements. The Group has now raised the target to a 9% relative carbon reduction within the original time scale (2008 – 2014) giving itself only two years to save an additional 3%. This progress is unique in the aviation industry.

TUI Travel PLC, the global leader in the leisure travel market, today launched its latest Sustainable Holidays Report. Following on from the launch of last year’s Sustainable Holidays Plan, this report tracks TUI Travel’s progress in the first year of its ambitious three year Plan. TUI Travel created the Plan to drive sustainability best practice across its global brands, having been a strong advocate for sustainable tourism for more than a decade.

In the report TUI Travel proves that green business is good business after saving £16M* during the 2012 financial year through environmental efficiencies. Data released today shows that the leading leisure travel group’s airlines are some of the best in Europe in terms of fuel and carbon efficiency. During 2013 the Group has made significant investments in cutting edge aviation technology such as:
•
Receiving its Boeing 787 Dreamliner aircraft, which is forecast to emit 20% less CO2 per passenger than comparable aircraft today

•
The commitment to purchasing 60 Boeing 737 MAX aircraft, with improved fuel-efficiency (2018 delivery)

•
Investment in the new innovative Split Scimitar Winglets, reducing fuel burn by an additional 2%


The Sustainable Holidays Plan comprises 20 challenging and measurable commitments, underpinning four over-arching and stretching goals. These are to operate Europe’s most fuel-efficient airlines and reduce carbon on the ground by 20,000 tonnes; to take 10 million customers on ‘greener and fairer’ holidays; and to be considered a leader in sustainable holidays by colleagues and customers.

Peter Long, Chief Executive of TUI Travel PLC outlines, “As a market leader, it is incumbent on us to pioneer sustainability change in the travel sector. Our objective is to deliver special travel experiences designed for our customers’ ever changing needs. Customers trust us to live up to our sustainability vision of minimising environmental impact, respecting culture and people, and bringing economic benefit to communities. In doing so, we improve the quality of their holidays, and help preserve the destinations we all love to visit.”

Highlights of the report include:
•
Proving green business is good business, TUI Travel reports £16M* saved through environmental efficiencies in the 2012 financial year

•
TUI Travel airlines have achieved their 6% relative carbon efficiency target two years early and have increased the target by 50% to 9% by 2015 (baseline 2008)

•
They are committed to becoming Europe’s most fuel-efficient airline, in 2012 89% of TUI Travel’s aircraft were fitted with fuel-saving winglets

•
73g of CO2 emissions per revenue passenger kilometre (RPK) across TUI Travel airlines – making its airlines some of the most fuel-efficient in Europe e.g. TUIfly being awarded most climate-efficient charter airline worldwide by atmosfair (see page 29 of the report)

•
Over 2m customers staying in hotels with sustainability certifications, an increase of 800,000 in the last year

•
TUI Travel featured over 850 hotels which have sustainability certifications in brochures and on websites

•
Since the launch of its Plan, the Group has organised more than 20 sustainability supplier workshops attended by 600 hoteliers and other stakeholders, proving how committed it is to sharing the importance of sustainability

•
TUI Travel businesses helped contribute over €5m to charities and environmental projects


Jane Ashton, Director of Group Sustainable Development at TUI Travel explains, “Travel and tourism accounts for 9% of the world’s GDP and 6% of its exports**. Tourism also accounts for 1 in 11 jobs globally** and is the main source of foreign exchange in one-third of developing countries***. The leisure travel industry can have both positive and negative impacts on communities and the natural environment – the challenge is how to manage these impacts for the greater good.

In this report we outline TUI Travel’s first year of progress against the 2012-14 Sustainable Holidays Plan. Many of our targets are on track, but some are proving challenging, and in those instances we will re-double our efforts to make further progress by 2015.

Meanwhile the global sustainability challenges remain as pressing as ever – for example, the impacts of eco-system degradation and climate change on the environment and communities in our holiday destinations, and on the holiday experience.”

04 Sep 13 TUI Travel PLC [TT.] (3.75 p)

TUI Travel: JP Morgan upgrades to overweight with a target price of 410p.

A buy in IC this week

Should I Buy These Shares? Tui Travel plc, GKN plc, CRH plc, Melrose Industries plc and John Wood Group plc


Tui Travel (LSE: TT.L - news)

Tui Travel was flying last time I looked at it in late May, soaring 120% in the previous 12 months. I suggested that Tui (LSE: 0NLA.L - news) could have further to travel, and the sun shone on its Q3 results, with strong demand across key markets, growing appetite for its "unique" holidays, and an 18% rise in underlying operating profits to £87 million. Management is on target to achieve its full underlying operating profit growth of at least 10% this year. Travel should recover strongly if the economy keeps growing, and with forecast earnings per share (EPS) growth of 12% to September and 9% the year after, Tui could be worth a trip.


http://uk.finance.yahoo.com/news/buy-shares-tui-travel-plc-101342068.html

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Trading statement Thurs 26 Sept

MARKET REPORT: Travel companies Thomas Cook and TUI Travel expected to report brisk business in trading updates


http://www.dailymail.co.uk/money/markets/article-2427039/Thomas-Cook-TUI-Travel-expected-report-brisk-business.html