Yahoo News TUI holiday bookings for 2021 surge by 145% as holidaymakers write off travel this year
Travel giant Tui has seen holiday bookings for 2021 surge by 145% as holidaymakers write off travel this year.
The company said it had seen an uptick in activity for next summer as it released some dire results for 2020.
For this summer period the firm recorded revenues of just €75 million, down 98% on the same period in 2019, as bookings tumbled by 81%.
This led to a earnings loss of €1.4 billion, down from a €60 million profit last year.
Tui also announced it will be slashing costs by a further 30% across the Group.
Tui said: "We are targeting a permanent annual saving of more than €300 million with the first benefits expected to be delivered from FY21 and full benefits to be delivered by FY23.
"Negotiations have begun within respective business units and we expect FY20 restructuring costs to be in the region of €240 million in FY20, €40 million in FY21 and €10 million in FY22.
"In two years' time, TUI Group will emerge stronger, leaner, more digitalised and more agile, in what is likely to be a much more consolidated market.
The company also confirmed it had received €1.2 billion in state aid from the German government as the company tries to stay afloat.
The agreement comes as the coronavirus pandemic continues to wreak havoc on the travel industry.
The company said the extra liquidity will help it endure the coming winter season and beyond.
The pandemic halted TUI’s activities for around three months to June.
It had been hoping for a recovery from July but new restrictions brought in by Britain on travel to Spain have meant more holiday cancellations and a further dent to its finances.
The company warned in May that it needed to cut 8,000 jobs and shed 30% of its costs to prepare for a smaller tourism market.
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