| | Germany's woes spill over to travel |
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CreateTime:2008-07-07 Editor:liaoyan
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TUI Travel Plc, Europe's largest tour operator, expects sales growth to slow in Germany after a reduction in capacity left it with fewer holidays to sell.
German revenue will be 2 percent ahead of last year by the end of the summer season, compared with 4 percent by May 13, Volker Boettcher, chief executive officer of TUI Travel's local unit, said last Friday.
Germany is TUI Travel's largest market, with annual sales of 4.63 billion euros (US$7.27 billion). The tour company has reduced the number of package tours and cut 1 million seats at its TUIfly discount carrier to boost profitability. The airline is selling 50 percent less discounted flight tickets than in 2007.
"We are mainly selling highly profitable package tours this year," Boettcher said, according to Bloomberg News. The number of cheaper last-minute-offers has declined and the revenue-to-earnings ratio was "satisfying."
Its German customers book 40 percent of package tours at least five months in advance.
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