Tour operators to post results after tough year

THE travel sector will be in sharp focus this week when tour operators TUI Travel and Thomas Cook deliver full-year results, with figures also due from two players in the pub market.

Two major travel companies will post their annual results and provide an insight into the health of the industry after a turbulent year.

Disruption caused by Iceland’s volcanic ash cloud earlier in the year as well as a period of good British weather and the World Cup over the summer all hit demand for overseas travel.

But Thomson Holidays owner TUI Travel, which reports its final results on Thursday, saw a pick-up in trade towards the end of the summer, which was enough for the company to reaffirm its confidence in meeting full-year expectations.

The group previously said its summer programmes, which ran to the end of October, were sold out after a late rush of bookings towards the end of the season.

The company had been concerned conditions in the market earlier in the year would hit profitability, but analysts said the firm has since experienced a turnaround, though profits are expected to be considerably down on last year.

Consensus figures for underlying earnings are £441 million (€519m), against £443m last year.

With Government spending cuts expected to hit consumer confidence, the City will be looking for an update on winter holiday and summer 2011 bookings.

Two pub chains are both expected to report profits hikes as stronger pubs benefit from a reduction in competition.

Pub chain and brewer Greene King, which reports half-year results on Friday, has been taking advantage of growing food sales in recent months.

They helped push like-for-like sales in its Greene King Retail division up by 4.4% in the first 18 weeks of the year.

Food now accounts for about 37% of its sales from managed pubs, which generated record revenues of £589.2m (€693m) in the year to May 2.

Pub company and brewer Marston’s is also expected to show the benefits of increasing food sales when it reports its full-year results on Thursday. It &is expected to announce a 4.6% hike in pre-tax profits to £73.5m.