Travel agent TUI sees Irish profits rise 50% to €4.9 million

Irish arm of German travel firm reports revenues of more than €149m in 2023

Operating profits at the Irish arm of German travel company TUI jumped by 50 per cent last year to €4.9 million, as the company said it saw a “strong trading performance” despite challenges faced by the global travel industry.

TUI Holidays Ireland Limited sells package holidays and other travel-related services in Ireland and operates six retail outlets here.

It reported revenues of €149.02 million in the financial year to 30 September 2023, up from €118.14 million in 2022.

The majority of 2023 turnover (€148.42 million) came from tour operator revenues, while €353,000 was from travel agency commissions, and €244,000 was from other commissions.

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The company reported operating profit of €4.9 million last year, up from €3.27 million in 2022, while profit before tax for 2023 amounted to €5.9 million, up from €3.17 million a year previously.

A directors’ report accompanying the accounts said that a “strong trading performance” enabled TUI’s Irish arm to improve its profitability in 2023, and that directors are satisfied with the current level of Irish package holiday bookings for 2024.

Profit before tax was also boosted by €1.25 million in finance income last year. The TUI Group has carried out various financing measures to address the negative impacts of pandemic travel restrictions on earnings and liquidity development.

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Directors said they expect customer numbers to return to pre-pandemic 2019 levels in 2024, despite challenges such as cost inflation, higher interest rates and foreign exchange fluctuations impacting supplier cost bases and squeezing household incomes.

“Wider use of online distribution, the provision of dynamic production capacities for flights and accommodation and the investments in digitalisation are expected to further improve the results,” they said, adding that the group will have a greater ability to hedge against fuel price changes and exchange rates this year compared to 2023.

Among the list of risks and uncertainties TUI Holidays Ireland identified for its business was the impact of climate change.

Directors noted increased costs caused by regulations and restrictions for airline and cruise industries, with the risk of future fuels and technologies also being costly.

They added that adverse climate conditions such as heatwaves, droughts or heavy rain could pose a risk to demand for popular holiday destinations, and extreme weather events could result in damage to assets and the disruption of business and transport hubs.

TUI Holidays Ireland is a subsidiary of TUI UK Limited and a member of the TUI AG Group, ultimately controlled by German parent company TUI AG.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.