SHARE OF THE WEEK: Shareholders hoping for Tui boost

Tui shares have had a torrid year as fears increased that families will cut back on holidays because of the cost of living crisis. 

Europe’s biggest travel agent has lost 43 per cent of its value since January. But investors will be hoping for some respite when the group posts results for the year to the end of September on Wednesday. 

The tour operator said in September that holidaymakers were rushing to book winter getaways – even as prices soared. And shareholders will hope the Christmas and new year boost will help Tui through a bleak winter. 

The German group said it expects to return to ‘significant’ profitability for the year after racking up huge losses during the pandemic. 

And analysts, as well as families planning holidays, will be looking for guidance on any further price increases – as airlines around the world face soaring costs. 

Hargreaves Lansdown analyst Sophie Lund-Yates said: ‘So far it seems TUI has been able to increase the prices it charges customers by double digits, which helps offset the group’s own soaring costs. 

‘Many would like to see what TUI predicts for further price hikes in the new financial year – a belief that customers will continue to swallow further increases suggests consumer sentiment is holding strong. 

‘Should the opposite ring true, this could have implications for TUI’s margins next year.’ 

Another aspect watched will be cruises as the trips rebound from a tough two years.