Thomas Cook says Turkey is their “”standout destination” for this summer as it is their second best summer selling destination. According to recent reports Chief Executive of Thomas Cook Peter Fankhauser said Turkey was the “standout destination” in all markets, with the UK picking up a lot earlier than in Germany. The number one selling destination is Spain with Turkey and Greece both in second place.
The official figures released also showed Turkish tourism revenue rebounded last year by 18.9% year-on-year after recovering from a series of terrorist attacks and a failed coup. However it’s fair to add that terrorist attacks at that time was a world wide problem it wasn’t only Turkey that suffered. Peter Fankhauser also said” We have made an encouraging start to trading for summer 2018, with our holiday and flight programme now 34% sold, 3% higher than this time last year, Turkey, Egypt and Greece are seeing good growth across all source markets, while the very strong demand we have seen for Spain over the last two to three years appears to be normalising.”
The renewed interest in demand for trips to Turkey is great news for Thomas Cook as it makes a significantly higher profit margin on holidays to Turkey than to Spain, its most popular holiday destination, where a price war amongst tour operators has come at a time with hotels raising their prices. “We see that Spain is getting again in this summer more expensive compared to a very good value for money proposition in the Eastern Mediterranean,” Peter Fankhauser told reporters.
Remarking about the recent collapse of two airlines in Europe, Peter Fankhauser called the holiday market “unpredictable”, while analysts noted risks associated with exposure to Turkey and Egypt plus other destinations in the Eastern Mediterranean. “The caveat being increasing exposure to potential geopolitical risk,” said Shore Capital analyst Greg Johnson. Thomas Cook, which was set up in 1841 established the concept of the “package holiday” is said to be more exposed to Turkey than its competitor the TUI Group.
Talking about the TUI Group they have recently reported their first quarter results of its financial year which are very strong indeed. They have seen a 4% increase in customer numbers and are forecasting a robust summer season, especially a big boost in bookings for Turkey, Cyprus and Greece. The TUI Group announced earlier this month that it had “managed to cut its underlying core loss by more than half in the three months to the 31st December to €25.4m (£22.60m).
Substantial growth over its cruises and hotels business notably boosted performance, helping it to offset a hit from the insolvency of Austrian airline Niki in December. The average selling prices for this summer is up 3%compared to the same time last year. The Chief Executive Fritz Joussen said recently “Following three consecutive years of double-digit earnings growth, we are aiming to deliver similarly strong growth in 2018.”
He also went on to add “Our strategy is successful. Our focus is on hotels and cruises. While we used to be a trading company, we have now become developers, investors, and operators.” “This makes TUI more profitable, and we now generate our earnings more evenly across twelve months.” The TUI Group were able to increase its turnover when stripping out currency effects by 9.1% to €3.58bn during this time. Turnover grew by 8.1% taking currency effects into account. TUI also added that for the full-year it is now well positioned to deliver “at least” 10% underlying earnings.
Only last week, TUI rival travel company Thomas Cook said that recovering demand for holidays to Turkey would help it offset the impact of rising costs in Spain. Turkey, it said, makes higher profit margins than Spain, where a price war is raging amongst tour operators. Turkey without doubt offers a better value holiday for tourists as soon as they set foot in Turkey. The exchange rate at the moment is currently 5.29 meaning for every 100 Great British Pounds (GBP) you will receive 528.80 Turkish Lira (TL).
This means summer holidays especially for families will be more affordable. Due to the events of the last couple of years in Turkey the die hard tourists who adore Turkey have carried on enjoying their Turkish summer holidays there despite all the scaremongering. Turkey is anticipating this year to be a bumper summer season with the help of popular airline companies increasing their seat capacity and adding new destinations. Turkey is preparing for a busy summer season.