Why Have TUI Put Prices Up?
TUI, Europe’s largest holiday company, recently announced a return to profit, with revenues of €16.55bn (£14.24bn/$17.62bn) in the year to September 30, up from €4.73bn the previous year. Along with this news, TUI also announced that winter holiday prices have surged 23% on pre-pandemic levels. This has left many customers asking why have TUI put prices up?
Rising Demand for Holidays
The main reason for the increase in prices is due to the fact that there has been a huge surge in demand for holidays since the pandemic began. This is due to the fact that many people have been stuck at home for the past year and are desperate to get away. As a result, the demand for holidays has outstripped the supply, meaning that prices have had to go up in order to meet the demand.
Another reason why TUI has put prices up is due to the fact that the cost of running a holiday company has increased significantly since the pandemic began. This is due to the fact that the company has had to implement a number of safety measures in order to ensure the safety of their customers. This includes things such as additional cleaning and disinfecting of aircraft and hotels, as well as additional staff costs. All of these costs have had to be passed on to the customer in the form of higher prices.
Finally, TUI has also had to increase prices in order to remain competitive in the market. This is due to the fact that there are now a number of other holiday companies offering similar services, meaning that TUI has had to raise its prices in order to remain competitive.
In conclusion, there are a number of reasons why TUI has put prices up, including increased demand for holidays, increased costs and competition. However, despite the increase in prices, TUI is still offering some great deals and discounts, meaning that customers can still get a great holiday at a reasonable price.