German tourism giant TUI announced a return to normal booking levels despite the ongoing war in the Middle East, presenting its latest financial results.
German tourism giant TUI announced a return to normal booking levels despite the ongoing war in the Middle East, presenting its latest financial results.
Although revenue from booked summer tours decreased by 6% compared to the same period last year, TUI, the world's largest travel group, reported that bookings increased by 7% over the last four weeks.
Nevertheless, TUI shares fell by more than 3% in early trading in Frankfurt after the company reported a net profit of 124.2 million euros ($143.1 million) for the last quarter, which is 44.7% less than last year.
The company noted increased interest in Eastern Mediterranean destinations as travelers return to the region after several months of geopolitical uncertainty.
CEO Sebastian Ebel stated during a conference call about the recovery in business activity: 'Business is returning, it is normalizing. We have seen strong weeks.'
The war in the Middle East has negatively affected airlines and cruise operators due to rising fuel prices, forcing many customers to change their travel plans.
TUI reported that hotel occupancy in the quarter ending in June decreased by 3%, which is an improvement compared to the 6% drop recorded over the previous six months.
Previously, TUI had issued a profit warning in April, several weeks after the Middle East war forced the company to repatriate 10,000 travelers, including 5,000 people stranded on two cruise ships in the Persian Gulf.
When asked during the call whether scorching European weather and wildfires are affecting bookings, Ebel replied that he has not noticed such an impact yet, as the weather in several other destinations of the company was cooler than in Germany, which suffered from heatwaves. He also added that there were fewer wildfires in TUI destinations outside the Mediterranean than usual.
Ebel expressed hope that the situation will continue, suggesting that a hotter summer could lead to an increase in TUI bookings in autumn and spring. He added that he believes the shoulder seasons in this and following years will become stronger.
The global tourism market has undergone significant changes in recent years. According to a study by the Organisation for Economic Co-operation and Development (OECD), some countries have demonstrated substantial growth in international arrivals due to infrastructure development and the implementation of new advertising campaigns, while others have yet to restore their figures to pre-pandemic levels.
Saudi Arabia ranked first globally in international tourist arrivals between 2019 and 2025, noting a growth of 67 percent. Morocco followed, showing an increase of 53 percent, and Egypt, which increased tourist inflow by 47 percent.
Brazil and Colombia also entered the top five, recording inbound tourism growth of 46 and 45 percent, respectively. The OECD attributes these positive results to large investments in tourism infrastructure, improvements in transport networks, and effective international advertising.
Turkey was also among the countries that noted a noticeable increase in foreign visitors, ranking eleventh and exceeding 2019 figures by 21 percent. Among European destinations, Norway, Serbia, Denmark, Portugal, and Spain demonstrated positive dynamics.
At the same time, many popular tourist destinations faced a significant decrease in the number of foreign guests. The largest drop was recorded in Israel, where the number of arriving tourists decreased by 71 percent. A substantial reduction was also observed in Ireland, Argentina, and Peru, while the USA, Italy, and Germany remain below 2019 levels.
