Tag Archives: spain

Tui claims to have outperformed the market in January

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Tui claims to have outperformed the market in January

Tui Travel claims to have “significantly outperformed” the market in the peak January selling period for summer holidays.

Sales volumes are now ahead of the company’s 9% capacity reduction, and is 35% sold to date, described as in line with the previous year.

Capacity has been cut for North Africa and the Eastern Mediterranean, with some of this reduction offset by increased capacity in the Canary Islands.

“Turn of year trading has been ahead of expectations and we are particularly pleased with our online performance,” Tui said.

The average selling price is up 8%, reflecting cost base inflation of approximately 5% and the continued increase in differentiated content.

“We have continued to increase the proportion of holidays sold online with 42% booked online for summer 2012, up six percentage points versus the prior year.”

All inclusive bookings are up by seven percentage points to make up 55% of bookings to date for the first summer that First Choice becomes exclusively all inclusive.

The ‘all in’ holiday concept is proving attractive, particularly in the current economic environment.

“As we continue to expand our differentiated offering, which traditionally books earlier, these products have accounted for 64% of bookings to date, up seven percentage points on the prior year,” Tui said.

UK bookings for this winter have improved since early December, with volumes continuing to move towards a capacity reduction of 9% and there is less left to sell against this time last year.

The booked load factor is currently 71%, described as being broadly in line with last year.

“We are pleased with our price performance, with average selling prices up 5% in light of inflationary cost increases and increased differentiated sales,” Tui said.

“Demand for differentiated products continues to be strong with volumes up 15%. These products now account for 62% of our sales, up 12 percentage points on prior year.

“As anticipated, North Africa remains challenging with volumes down 23%. Across our programme strong demand in the lates booking period has resulted in improved load factors for November, December and January.”

EasyJet posts 60% increase in profits

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EasyJet posts 60% increase in profits

Nov 15, 2011 08:17AM GMT

EasyJet has delivered a 60% rise in full year pre-tax profits to £248 million and is returning £195 million to shareholders.

The budget carrier, under pressure from founder and major shareholder Sir Stelios Haji-Ioannou over dividend payments, said it was making “tangible returns” to shareholders despite a £100 million hike in fuel costs.

Overall capacity rose by 11.5% due to network expansions from Gatwick and in France and Switzerland. Passenger numbers rose 11.8% to 54.5 million and load factor improved by 0.3 percentage points to 87.3%.

Total revenue grew by 16.1% to £3,452 million resulting in growth of 4.1% in revenue per seat to £55.27. Ancillary revenue rose by 12.9% to £11.52 per seat following “decisive management action” in the second quarter of the year.

Passengers originating outside of the UK now account for 56%, an increase of 3 percentage points compared with 2010.  Those flying on business increased by almost one million to 9.5 million

Underlying cost per seat fell by 1.3% for the full year with strong performances in ground handling, maintenance and disruption-related costs, the carrier said.

Chief executive Carolyn McCall said: “Despite the headwinds of higher fuel costs and a weak and uncertain economic outlook, our focus on customers, robust operational performance, the strength of EasyJet’s network combined with cost control and capital discipline means that EasyJet is well placed to succeed.”

The airline took a swipe at government for reversing its election promise to turn Air Passenger Duty in to a per plane tax.

“Instead it is proposing to lower the tax on long-haul flights and increase it on short-haul flights,” EasyJet said. “Evidence shows this is both economically and environmentally damaging.

“Aviation’s entry into the European Union Emissions Trading System means that there is no longer any environmental case for taxes on aviation.”

The airline also voiced concern over “monopoly infrastructure” airport and airspace providers across Europe which continue to impose higher charges despite the uncertain economic climate.

“Monopoly airports need to become more efficient, with infrastructure and associated charges built around the needs of passengers on point-to-point carriers such as easyJet. This will bring wider economic benefits by promoting tourism and trade,” EasyJet said.

Looking forward, the carrier said: “The macro-economic environment remains challenging for all airlines as weak consumer confidence across Europe slows the rate at which higher fuel prices and increased taxation can be passed onto passengers.

“Against this backdrop EasyJet is taking a cautious approach to capacity deployment.  As a result, capacity in the first half of the year is planned to be flat (adjusting for disruption in the first part of the prior year), with growth of around 4% for the full year.

“With around 45% of winter seats now sold, in line with the prior year, first half passenger revenue per seat is expected to grow by mid-single digits with planned improvement in yields, bag charges and other ancillary revenues.

“Cost per seat excluding fuel and currency impact is expected to grow by 2% to 3% for the full year and by 4% in the first half of the year, assuming normal levels of disruption, driven by price increases at regulated airports and investments in new revenue streams.

“At current fuel and exchange rates easyJet’s fuel bill is anticipated to increase by £220 million in full year 2012 compared to full year 2011.

“Despite the headwinds of higher fuel costs and a weak and uncertain economic outlook, our focus on customers, robust operational performance, the strength of EasyJet’s network combined with cost control and capital discipline means that EasyJet is well placed to succeed.”

Spain to ‘refresh’ brand with new marketing plan

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WTM: Spain to ‘refresh’ brand with new marketing plan

Nov 09, 2011 14:00PM GMT

The Spanish Tourist Office is following the lead of Microsoft and Levi’s as it plans a three-year strategic marketing plan, due to launch in January.

The Spanish Tourist Office’s new UK director, Enrique Ruiz de Lera, said Spain faced major challenges and was seeking to learn solutions from the experiences of major consumer brands.

He compared Spain to Microsoft – leading the market for many years but now challenged by Apple – or, in Spain’s case, Turkey and Croatia. Ruiz de Lera said: “These destinations are competing hard. They have excellent product and they’ve learnt from our mistakes. We need to refresh our brand.”

Ruiz de Lera also said Spain was seen as “uncool” by young people, in the same way as under-30s don’t want to buy Levi jeans because they are worn by their parents.

As part of a drive to target the younger market, the Spanish Tourist Office, is working with MTV on branded content – a first for Spain and MTV. Reality TV show Fix You will air in January.

Objectives of the marketing strategy include a drive to increase the average tourist spend by 15% in three years – a goal that Ruiz de Lera admited was ambitious.

“It’s a long shot. When we planned the goal, the economy was less difficult. But you have to be bold,” he said.

The STO also hopes to diversify the market over the next three years, both seasonally and geographically.

Ruiz de Lera also said product diversification was necessary, with a cross-selling plan to encourage tourists to experience more. “A visitor to the Costa del
Sol can add on a few days in Malaga, for example.”

The UK market was still extremely price-sensitive, he said, and Spain had to be careful not to price itself out of the market.