TUI Deutschland: presentation of winter brochures 2005/2006 TUI continues to grow in domestic market / 8.1 percent turnover increase in the summer season / Positive prospects / Travel prices remain stable in the winter season

Hanover/Potsdam, July 29, 2005

TUI, Germany's leading tour operator, is pursuing a growth course in its domestic market. In the source market Germany, TUI is recording an increase of 8.1 percent in booked turnover for the 2005 summer season, with customer numbers up 17.8 percent year-on-year. The disproportionate increase in customer numbers is attributable to the consolidation of the business figures of low-cost carrier Hapag-Lloyd Express (HLX). On a like-for-like basis, i.e. adjusted for HLX, the turnover growth for the current summer season totals 6.4 percent, with a 7.5 percent rise in customer numbers year-on-year. At today's presentation of the new 2005/2006 winter brochures in Potsdam, Dr Volker Böttcher, head of TUI Germany, was optimistic about the coming winter season. He announced stable travel prices and a notable increase in turnover and customer numbers.

Gratifying trend in the summer season
“The holiday business is booming. Germany has not yet won the soccer World Cup, but we already are the travel world champions”, said Böttcher, commenting on the current situation. He pointed out that initially, when bookings for the summer season commenced, this trend had not been expected. The summer business had seen off to a slow start and was additionally impaired by the tsunamis in South East Asia at the beginning of the year. “Owing, among other factors, to our consistent early booker strategy, however, we have been able to catch up speedily since March“, said Böttcher. Another remarkable trend he mentioned was that the drop in bookings usually recorded after 31 March, i.e. the the closing date for the early booker discount, was not recorded this year. Böttcher pointed out that this was partly due to the fact that TUI had established a new early booker variant in the market. Böttcher: “To date, other tour operators are technically unable to copy this tool.” With the so-called 60-day discount, holidaymakers are granted early booker discounts in selected hotels when booking their tour up to 60 days prior to departure. He said, this new tool has resulted in a shift from short-term to medium-term bookings. “Hotels offering the 60-day discount have recorded a significant rise in medium-term bookings in the period from 9 to 17 weeks prior to departure“, said Böttcher.

Winners and losers in the summer season
The winners in the 2005 summer season include Majorca, Turkey and numerous long-haul destinations. At an increase of 21 percent in customer numbers year-on-year, the largest Balearic island continued to expand its position as Germany's single most popular destination. Turkey is reporting another record year. Following an increase of 18 percent in customer numbers in the summer of 2004, TUI is currently recording 22 percent growth. Demand is also strong for tours to Portugal (+ 10 percent), Greece (+ 5 percent) as well as Tunisia (+ 14 percent) and Morocco (+ 54 percent). Owing to the strength of the euro, the winners in the summer season also include several long-haul destinations. Demand for holidays in the US has climbed by 46 percent. Extraordinary growth is also recorded in the destinations Kenya (+ 81 percent), Bali (+ 38 percent) and Mauritius (+ 20 percent). Bulgaria is not yet recording a satisfactory trend. Here, customer numbers fall 13 percent short of last year's level. Egypt is recording a slight decline of three percent.

Stable prices in the winter season
Despite a substantial increase in the cost of aircraft fuel, average travel prices for the 2005/2006 winter season have been kept stable for all TUI brochures. However, the individual holiday regions show significant differences in price trends. Substantial price reductions can be expected by holidaymakers travelling to Turkey (- 7 percent) and Thailand (- 5 percent). Prices of tours to Egypt, an increasingly popular winter destination, will also drop (- 2 percent). Spain is reporting different price trends. While Majorca is upholding last year's price levels, prices of tours to the Canary Islands will slightly rise by 1.3 percent. Prices of winter tours for car travellers will also increase slightly (Germany + 0.5 percent; Austria + 2.5 percent; Italy + 1.0 percent). Prices of tours to the Caribbean will remain virtually constant. The Dominican Republic and Jamaica will see a slight decline in prices, while prices of tours to Cuba will slightly rise year-on-year.

Positive prospects
TUI Germany clearly expects growth for the forthcoming winter season. “I expect market growth of three to four per cent for the winter season. Our goal is to slightly outperform the market”, said Böttcher. Hence, TUI will continue to pursue a consistent early booker approach. Besides early booker discounts related to specific closing dates, which apply to virtually all of TUI's beach and long-haul destinations, the 60-day discount will be further expanded. In order to convince customers of the benefits of early booking, a special bonus is offered to instant bookers. The first 50,000 customers booking a TUI tour will obtain a 50 euro discount in selected hotels in addition to the early booker discount.

Further information on the presentation of the winter brochures and photos are available on the internet and can be downloaded at www.tui-deutschland.com

TUI Investor Relations:
Björn Beroleit, Telefon +49 (0)511 – 566 1310
Nicola Gehrt, Telefon +49 (0)511 – 566 1435