Several publicly traded travel companies reported financial results for the second quarter of 2022 this week. See a roundup of earnings reports below.
Germany-based leisure travel conglomerate TUI Group says the period from April through June 2022 was the first time it nearly broke even since the start of the pandemic – despite excess costs of € 75 million due to flight disruptions.
Without those costs, the company says it would have had profit of € 48 million. TUI Group says it expects to return to “significantly positive underlying EBIT” for the full year 2022.
In the quarter, guest numbers were 84% of 2019 levels and revenue was € 4.43 billion – almost seven times more than in the same period last year (€ 650 million).
“Our business performed well in the third quarter – despite the operational challenges in the European tourism sector. This shows the robustness of our integrated business model, the strength of the TUI brand and the continued high demand for holidays, ”says Sebastian Ebel, TUI Group CFO, who will take over as CEO when current CEO Fritz Joussen steps down in September.
Says Joussen: “TUI is secured and economically and operationally back on track when I hand over the chairmanship to Sebastian Ebel on September 30. All growth areas expanded in recent years are back on track after corona: hotels, cruises and the tours and activities field with our digital subsidiary TUI Musement. TUI was strong and profitable before corona and will continue to be so after the crisis of the century. “
InterContinental Hotels Group
In its Q2 2022 and half-year earnings report, global hospitality company IHG says global RevPAR was up 51% in the first half of this year compared to the same period in 2021, and in Q2, RevPAR came in just 4.5% behind pre- pandemic levels.
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“Alongside leisure stays, the return of business and group travel demand continued to build over the period, and our hotels are seeing increased pricing power due to the strength of IHG’s brands, loyalty program and technology platform,” says Keith Barr, CEO of IHG Hotels & Resorts.
“The recovery in demand and pricing led to group profit more than doubling versus 2021, with profitability in the Americas now ahead of 2019. The EMEAA region also saw excellent improvement in performance. Whilst Greater China had a tough period as COVID-related travel restrictions were tightened, we have since seen a strong recovery in the most recent months, although risk of further volatility in trading in the region still remains. “
IHG is reporting revenue of $ 840 million and operating profit of $ 377 million for the first six months of this year – up 49% and 101%, respectively, year-over-year.
“The investments we have made to innovate our technology and distribution channels continue to drive improvements in both the guest experience and owner returns,” Barr says.
“Some of the biggest achievements this year include the critical step of transforming our loyalty program, IHG One Rewards, and the redesign of our mobile app and digital channels to deliver a faster, simpler booking experience.”
Ireland-based online travel agency for budget accommodations Hostelworld says net bookings in the first half of this year were 2.1 million – 59% of 2019 levels.
Net revenue of € 28m was 104% of 2019 levels driven by higher average booking values.
Overall EBITDA for the six months was negative € 5.2M – an improvement from the € 9.7 million loss in the first half of 2021 – and coming in positive during June this year.
“We are encouraged by the strong recovery we have seen in the first six months of the year across all demand segments and destinations, which demonstrate the ability of our business to capture pent-up demand as the travel market returns. In particular, booking demand into Europe, our largest destination in 2019, remains strong with our top markets in Southern Europe exceeding 2019 levels, ”says Hostelworld CEO Gary Morrison.
“We also witnessed booking momentum slowly returning to Oceania and Asian destinations from a very low level in January, with booking demand in June at 43% of 2019 levels. Finally, long-haul bookings have reached 75% of 2019 levels in June, with trips from the US and Canada into European destinations above 2019 levels. “