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Thomas Cook impacted by hot weather in the UK

Thomas Cook impacted by hot weather in the UK

Mon 24 Sep 2018 07:22 by ukcitymedia.co.uk about : trading updates - 1 Comments - 6077 words


 

·   Good strategic progress through the year to date

·   Challenging period of 'lates' trading following unprecedented months of hot weather

·   Full year underlying EBIT now expected to be around £280 million, based on recent trading

 

Peter Fankhauser, Chief Executive of Thomas Cook, commented:

 

"Summer 2018 has seen a return to popularity of destinations such as Turkey and Tunisia. However, it has also been marked by a prolonged period of hot weather across Europe. This meant many customers spent June and July enjoying the sunshine at home and put off booking their holidays abroad, leading to even tougher competition and higher than usual levels of discounting in the 'lates' market of August and September.

 

"Our recent trading performance is clearly disappointing. However, despite the recent challenges, we continue to make good strategic progress which positions us well to drive further performance improvement; this includes the launch of our Expedia alliance in the UK and Scandinavia, signing our first own-brand hotel in China and lining up a pipeline of 10 new Cook's Clubs in some of our key destinations for Summer 2019."

 

Current trading

Summer 2018                                                                                

Our Summer 2018 programme is now 90% sold, in line with last year. Total Group bookings are up 12% compared to this time last year driven by the return in popularity of holidays to Turkey, Egypt, Tunisia and Greece. Pricing across all segments remains higher than last year but, with a higher mix of short/medium-haul airline bookings, overall average selling prices are 5% lower. 

 

 

 

Summer 2018

Year-on-Year Variation %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bookings(i)

 

ASP(i)

 

% Sold(ii)

 

 

 

 

 

 

 

 

 

 

 

UK

 

Flat

 

+7%

 

94%

 

 

Continental Europe(iii)

Flat

 

+2%

 

87%

 

 

Northern Europe

+4%

 

+2%

 

98%

 

 

Group Tour Operator

+1%

 

+3%

 

92%

 

 

 

 

 

 

 

 

 

 

Short & Medium Haul

+18%

 

+6%

 

89%

 

 

Long Haul

-1%

 

+2%

 

90%

 

 

Group Airline(iv)

+15%

 

+1%

 

89%

 

 

 

 

 

 

 

 

 

 

Total Group

+12%

 

-5%

 

90%

 

 

 

 

 

 

 

 

 

 

 

Based on cumulative bookings to 15 September 2018

Notes

(i)

Risk and non-risk customers

 

(ii)

Risk customers only

 

(iii)

Continental Europe excluding legacy city and domestic hotel-only business bookings up 3% with ASP flat

 

(iv)

Group Airline figures include intercompany sales to the Group Tour Operator

 alan_keys_n13

24/09/18     4 words


22% down at 8.32



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