Europeans Ditch US Trips as Asia and Emirates Become Allure
Tui's chief executive Sebastian Ebel revealed that Europeans are opting for alternative destinations, including the United Arab Emirates and Asia, amid concerns over US immigration policies. The German travel operator saw "significantly lower demand" for trips to the US, with only 34% of long-haul travelers intending to visit Europe, down from 37% last year.
The waning appetite for US travel can be attributed to several factors, including stricter border scrutiny and reports of tourists being detained at the US border. Ebel acknowledged that the "atmosphere" and "what you hear from border control" have deterred many Europeans from making trips to the US.
In contrast, demand for long-haul travel to Europe has seen a slight increase, with 42% of long-haul travelers considering a trip to the continent this year. The Caribbean has also become a more appealing destination, with Tui's occupancy rates rising despite a fleet expansion.
The trend is echoed by a report from the European Travel Commission, which found that several countries have issued advisories about traveling to the US due to these concerns. In response, Tui's cruise business has seen significant growth, with profits rising by over 70%.
Despite this, the company's hotels and resorts division suffered a double-digit decline due to losses resulting from the Jamaican hurricane.
Tui's shares ticked up 0.4% in early trading on Tuesday, following the release of its quarterly results. The stock has risen by around 10% in the past year, driven by the company's resilience in the face of declining US travel demand.
Tui's chief executive Sebastian Ebel revealed that Europeans are opting for alternative destinations, including the United Arab Emirates and Asia, amid concerns over US immigration policies. The German travel operator saw "significantly lower demand" for trips to the US, with only 34% of long-haul travelers intending to visit Europe, down from 37% last year.
The waning appetite for US travel can be attributed to several factors, including stricter border scrutiny and reports of tourists being detained at the US border. Ebel acknowledged that the "atmosphere" and "what you hear from border control" have deterred many Europeans from making trips to the US.
In contrast, demand for long-haul travel to Europe has seen a slight increase, with 42% of long-haul travelers considering a trip to the continent this year. The Caribbean has also become a more appealing destination, with Tui's occupancy rates rising despite a fleet expansion.
The trend is echoed by a report from the European Travel Commission, which found that several countries have issued advisories about traveling to the US due to these concerns. In response, Tui's cruise business has seen significant growth, with profits rising by over 70%.
Despite this, the company's hotels and resorts division suffered a double-digit decline due to losses resulting from the Jamaican hurricane.
Tui's shares ticked up 0.4% in early trading on Tuesday, following the release of its quarterly results. The stock has risen by around 10% in the past year, driven by the company's resilience in the face of declining US travel demand.