Skift Take
As TUI hits records for revenue, the tour operator highlighted its growing use of dynamic packaging and its increasing direct inventory deals with low-cost airlines and hotels.
TUI Group surpassed earnings expectations in the first quarter of 2024 with the help of a surge in demand for holiday experiences like cruises and the increasing use of dynamic packaging.
TUI saw record revenue of $4.6 billion (€4.3 billion) in the quarter — a 15% rise from the same period last year, despite the usual winter travel lull.
“In a persistently challenging environment, people’s high willingness to travel ensures strong economic development in all areas of the group,” TUI’s CEO Sebastian Ebel said.
While almost all travel segments contributed to the uptick, the company's "holiday experience" segment — which includes hotels, resorts, cruises and activities — played an outsized role in increasing revenue.
TUI’s management attributed some of the results to investing in dynamic packaging options during booking.
Cruise revenue increased by 44.7% from last year and hotel revenue increa