TUI records strong demand for travel across Europe Turnover growth in all major source markets

Berlin, March 12, 2005

TUI has started off well into the 2004/2005 travel year and is recording strong travel activity in all key European markets. The Group reports 5.3 percent growth in booked turnover for the entire 2004/2005 tourism year whilst customer numbers are up 4.6 percent. For the current winter season booked turnover rose 4.0 percent and customer numbers increased 3.2 percent. The summer season shows an even better trend. Growth in booked turnover climbed to plus 7 percent, customer numbers are up 6.6 percent. 'I am pleased with the current trend', says Dr Michael Frenzel, CEO of TUI AG, in commenting on the booking numbers.

Disproportionate growth in Western Europe and Scandinavia
Dr Frenzel referred to disproportionate growth, e.g. in Scandinavia, the Netherlands and France. TUI Nordic is now reaping the fruit of its restructuring programme, having passed through several difficult years, and records an increase of 16.7 percent in turnover year-on-year. Turnover in the Netherlands has risen by 26 percent. This is partly attributable to a tactical distribution measure: brochures for the summer season have been published earlier, a move that has resulted in market share gains. Source market France is currently benefiting from a considerable expansion of the product range and the relatively young TUI France brand. In conjunction with the positive development of the Corsair airline, this has contributed to the upward trend and turnover growth of 14.5 percent. In the UK, booked turnover was up 1.6 percent on the previous year's good level, with recent bookings again picking up considerably.

Gratifying growth in domestic market Germany
TUI records a gratifying development in Germany. For the 2005 summer season, turnover growth currently accounts for 5.4 percent in TUI's domestic market. Following initial consumer restraint in bookings in January due to the tsunamis in Asia, bookings rose steeply in February. 'Thanks to a consistent early booking strategy and conservative capacity planning, the growth in turnover goes hand in hand with good earnings.' says Dr Volker Böttcher, Chief of TUI Deutschland. He emphasized that both package tours and modular tours are currently growing. The Group's German airlines, Hapag-Lloyd Flug and Hapag-Lloyd Express, are also set for growth. Charter airline Hapag-Lloyd Flug reports a significant increase in bookings in the seat-only business. This is attributable to the successful repositioning of this segment and the relaunch of the hapagfly.com website. In the low-cost market, Hapag-Lloyd Express continues to grow strongly. ’We expect HLX to break even for the first time this year', says Böttcher.

Strong demand for Spain and Turkey
Around six weeks before the official start of the summer season, the first clear travel trends are emerging for Germany. Majorca will again rank top of the league of the most popular holiday destinations this year and will even further consolidate this position. Turnover for the largest Balearic island is currently up 20 percent on the previous year. Strong demand is also recorded for tours to Turkey (+15 percent), Portugal (+15 percent), Tunisia (+13 percent) and Morocco (+58 percent). Following the record results achieved last summer, turnover from tours to Bulgaria and Egypt is still falling short of expectations. Due to the strong euro, many German holidaymakers will book a long-haul tour in 2005. The strong increase in turnover from tours to the US (+9 percent), Canada (+59 percent), Kenya (+97 percent), Mauritius (+12 percent) and China (+36 percent) reflects a boom in long-haul tours in TUI tour operators. Other offerings popular with German holidaymakers are family clubs, all-inclusive programmes and wellness tours.

As of 25 February 2005

As of 25 February 2005

For further information please contact:
Björn Beroleit, phone +49 511 566-1310
Nicola Gehrt, phone +49 511 566-1435