Travel is booming, according to one of the world’s leading travel companies. Last Tuesday, TUI revealed that upcoming holiday bookings for 2023’s summer and winter seasons reached 8.7 million, signalling a rapid recovery across the leisure, travel, and tourism industries.
According to TUI’s recent data, the number of guests reached 3.3 million in the first quarter, up by 1 million when compared to fiscal 2022.
The Hotels and Resorts division of TUI also registered a 71% occupancy rate between October and March last year—marking a substantial increase.
As more people head overseas for long-awaited trips, the recovery of the travel industry is gaining momentum. TUI’s company revenue for the first quarter of 2023 shot up to an impressive 3.8 billion euros ($4 billion), up from 2.4 billion euros in Q1 2022.
With this, TUI’s group loss (before interest and taxes) halved in a year—from 274 million euros to 158.7 million—and shares rose 4.4% to 178.8.
Since March 2022, the number of bookings for international travel from Europe, the Middle East and Africa has exceeded pre-pandemic levels. Yet, tourism activity continues to gain momentum.
It seems that despite rising inflation and cost of living pressures, people remain set on travelling abroad. According to the “Skyscanner Horizons: Outlook in 2023”, 82% of travellers are planning to spend more or the same amount on trips in 2023 compared to last year.
In the U.S., demand for holiday rentals was up 27% in January year-over-year, with more than 4 million stays booked in the first 3 weeks.
Meanwhile, the strong dollar is drawing U.S. citizens across the pond. Now able to get substantially more for their money, they are flooding into European destinations to enjoy a luxury break—with U.S. tourist numbers in Portugal increasing by over 300% in 2022.
As holiday bookings continue to pile in for 2023, TUI isn’t the only company to reap the rewards of a reviving travel industry. Bookings from Ryanair, Wizz Air and easyJet also look promising.
Ryanair saw strong pent-up travel demand between October and December when it recorded profits of €211million (£185m). In January, it registered a record-breaking two million bookings in a single weekend.
Other leading budget airlines are also seeing positive results. Notably, easyJet shares have gained 5% over the past five days.
After several years of adversity, the travel industry is finally gaining speed—despite the pressures of rising inflation. As millions of travellers head overseas, and more trips get added to the diary, 2023 is looking to be a bright year for those with a stake in global tourism.
Contact us today to discuss property investment opportunities.
