TUI AG Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Othmane Bricha - Bank of America Merrill Lynch - Analyst : First, on M+A summer bookings. Can you comment on competition in Germany and what you're seeing and how much that impacts your bookings? And also, you've mentioned that bookings today on M+A would look better if taken today versus early May. Would you be able to tell us what booking volumes would look like now? And then second, on revaluation effects on both Hotels and the other segments, can you please quantify those?

Question: Othmane Bricha - Bank of America Merrill Lynch - Analyst : And on the other segments?

Question: Andrew Lobbenberg - Barclays Bank - Analyst : Can you talk -- I mean, I know you were asked about it, I think, slightly in the previous question about competition within Germany. But what are the dynamics in the German market that arise from the disappearance of FTI? And the second question would be -- and sorry, I wasn't at the Capital Markets Day, but can you help me understand how does the growth in dynamic packaging play out on the mix effect and, hence, on the average selling price?

Question: Richard Clarke - AB Bernstein - Analyst : Three questions, if I may. Just if you look at your booking position being down 1% for the summer at the 4th of May, and you're talking of dynamic being very strongly with the Ryanair partnership, so is it fair to say that your risk capacity bookings are down year-on-year? And maybe what is the level of that negative trends on the risk capacity? And I guess, if we've got a later booking window and you're holding risk capacity into that later period, how should we think about the sort of ASP evolution from here? You're up 4% so far. Is that number likely to come down given this pushback in the booking window? And then thirdly, slight change of direction, but Marella, you call it a refleeting. I guess we got the information on the new ships, just the phasing out, like which two of the five ships are you going to phase out and in which years? And then I know it ages off, but what happens beyond 2033? Are you going to keep the other 3 ships going? They're going to be getting towards sort of 30 years and more in age?

Question: Richard Clarke - AB Bernstein - Analyst : Sorry, just a point of clarification there. You said that your risk capacity is now actually running down for the summer, not flat?

Question: Cristian Nedelcu - UBS Investment Bank - Analyst : Can I please ask on Hotels? I think the RIU occupancy in Q2 was down 4% year-over-year. All the other hotels have occupancy up 1%. So I'm guessing it's maybe not that much Easter. So what is really driving this discrepancy? And what are your expectations for RIU occupancy in the second half of the year? The second one, just going back at the guidance on hotels pricing and occupancy back in February. Q2 came weaker than expected. Also the H2 was revised down today. Could you help us a bit with more details what drove these downward revisions? Was it FX? Occupancy was also revised down. So any more details there? And the last one, if I may. One of your tour operator peers in the UK called out a bit weaker demand from -- a bit weaker demand for Spain as some UK tourists are avoiding the area due to protests. Do you see this trend in your hotels numbers, in your hotels bookings at all?

Question: Cristian Nedelcu - UBS Investment Bank - Analyst : Could I add one small follow-up? I guess on -- can you comment a bit more what you're seeing in your Caribbean hotels having roughly 50% of RIU beds are there? Have you seen any weakness in occupancy or in pricing in your bookings or in your results over the last months?

Question: Jaina Mistry - Jefferies - Analyst : I wanted to ask about EBIT for the full year. Now if you look at H1, underlying EBIT grew 14%. Q2 ex Eastern currency was broadly flat. And you've maintained the guidance for 7% to 10%. Just are you assuming kind of flat to low single-digit EBIT growth in H2? And why is the run rate so much lower than Q1? My second question then is, could you quantify the currency impact for the full year if spot stays where it is on EBIT? And then third question, just related to Andrew's question. When you think about growth in dynamic packages, is that EBIT margin accretive? And how should we think about it on an EBIT per passenger basis versus wholesale?

Question: Jaina Mistry - Jefferies - Analyst : Are you seeing a transactional impact from the weaker dollar on fuel purchases?

Question: Conroy Gaynor - Bloomberg Intelligence - Analyst : Perhaps, first of all, could you -- it still seems like we're in a stubborn environment for cost inflation. Could you perhaps comment on where you're seeing that inflation going forward over the next 6 to 12 months? Is this related to specific components such as wages or maintenance? Or is it related to specific regions? And then the second one would be on the UK. I know we spoke a little bit about the German dynamic. But perhaps if you could talk about the -- how you're seeing the UK consumer and competitive dynamics shape up this summer and perhaps how that ties into some of the booking trends you're seeing there?