Business

Tui Group hit by 40% fall in Turkish holiday bookings

Turkish beach at sunset Image copyright Reuters

Tui Group has reported a 40% slump in summer holiday bookings to Turkey following the continued fighting and migrant crisis in neighbouring Syria.

The owner of the Thomson and First Choice brands said it was "evident that there has been a significant shift in demand away from Turkey".

Instead, holidaymakers were heading to areas such as Spain and the Canaries.

Despite the fall, Tui expects underlying annual profit growth of 10%.

In a first-quarter update for the three months to 31 December, Tui Travel also said that demand for its hotels in Egypt had also been affected by fears of violence.

In October last year, a Russian airliner exploded 20 minutes after taking off from leaving the Egyptian resort of Sharm el-Sheikh, killing all 224 people on board.

The self-styled Islamic State group has said it was responsible for blowing up the Metrojet plane.

Tui Group said it had sold 33% of its summer holidays for this year, in line with expectations. Total sales for the first quarter rose 5.4% to €3.7bn (£2.8bn) and underlying losses narrowed marginally from €105m to €102m.

Shares in Tui fell 3.2% to £10.62 in early trading.

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