TUI Group: good final quarter ensures record revenue for full year 2023
In financial year 2023 (1 October 2022 to 30 September 2023), TUI again recorded very high demand for holidays and strong operating business with around 19 million guests. Following a good fourth financial quarter, underlying Group EBIT more than doubled to 977 million euros for the full year 2023 (previous year: 409 million euros). The tourism group’s revenue rose by 25 percent and, at 20.7 billion euros, broke through the 20 billion euro mark for the first time (previous year: 16.5 billion euros).
The growth and core segment Holiday Experiences with Hotels & Resorts, Cruises and the activities of TUI Musement recorded a strong operating performance in all areas. The segment’s underlying EBIT improved by 317 million euros year-on-year to 822 million euros (previous year: 505 million euros). Hotels & Resorts continues to be one of the most successful growth pillars in the Group: underlying EBIT climbed to 549 million euros (previous year: 480 million euros). Average revenue per bed and night rose by 13 percent year-on-year to 87 euros, while occupancy improved by +6 percentage points to 82 percent.
Cruises significantly improved its operating result compared with the previous year. Occupancy of the ships in the three fleets of TUI Cruises, Hapag-Lloyd Cruises and Marella Cruises ranged between 72 and 96 percent (previous year: between 58 and 70 percent), while available passenger days across all three brands rose by 15 percent to 9.5 million (previous year: 8.2 million). As a result, underlying EBIT at Cruises climbed significantly to 236 million euros (previous year: 1 million euros).
The growth business TUI Musement with tours and activities recorded a good operating year. In the period under review, 9.4 million excursions, tours and activities were sold – 34 percent more than in the previous year. The number of transfers rose by 17 percent to 28.2 million. TUI Musement’s underlying EBIT rose to 36 million euros (previous year: 24 million euros).
The Markets & Airlines segment with TUI tour operators in the Northern (UK, Ireland, Sweden, Norway, Finland, Denmark), Central (Germany, Austria, Switzerland, Poland) and Western (Netherlands, Belgium and France) regions recorded an improved business performance across all markets and achieved a positive operating result for the full year for the first time since the start of the pandemic. Earnings in the Markets & Airlines segment totalled 241 million euros, following a loss of 59 million euros in the previous year.
The Northern Region with TUI UK&I improved underlying EBIT to 71 million euros after a significant loss in the previous year (-102 million euros). The Central Region with TUI Deutschland again closed the full year with a positive result, with underlying EBIT totalling 88 million euros. In the previous year, earnings reached 75 million euros. The Western Region also significantly improved its underlying EBIT from -32 million euros in the previous year to 81 million euros. The transformation in the Markets & Airlines segment will be driven forward and accelerated in 2024 in order to grow and become more profitable in the markets with our tour operators.