TUI AG To drive positive impact in our destinations, we launched the TUI Care Foundation which has been responsible for creating various local and international programmes, working in collaboration with our destination partners as well as local and internationals NGOs since 2016. Today, the foundation is running 25 projects in 20 countries. Our many programmes include more recently, the launch of a Corona relief programme to help overcome the effect of the COVID-19 pandemic in holiday destinations by setting up an extensive relief initiative to support more than 200 local organisation around the world. In addition, the Economic Development Programme supports innovative and socially minded tourism entrepreneurs in travel destinations. The programme drives social innovation, creates local employment opportunities and contributes to local added value in holiday destinations, using tourism as a motor for positive change.
Our goal is to play a pioneering role in sustainability. We want to use tourism's creative power to maximise the benefits of tourism. And at the same time, we will innovate to minimise the ecological footprint of travel as well as encourage our customers to choose more sustainable travel options, and to take action to reduce their negative impacts and maximise their positive impacts in destinations. Together, with all our external and internal stakeholders and partners, we will drive a more sustainable future for the tourism industry.
To this end, with the UN Sustainable Development Goals at its core, we look forward to launching the TUI Group Sustainability Agenda 2050 this coming Autumn and sharing our sustainability strategic initiatives and expected key milestones.
Report on changes in expected development
It remains difficult to forecast the further course of the pandemic and its impact on customer behavior. In view of these considerable uncertainties, the Executive Board continues to believe that it is not in a position to issue a specific forecast for the financial year 2021.
As part of our reporting on H1 2021 the expectations for the financial year 2021 made in the Annual Report 2020 have been adjusted in the following points. -- Due to the travel restrictions in the first half of the year and the current expectations for the summer season
2021, we now expect TUI Group revenue (IFRS 16) in financial year 2021 to be down year-on-year at constant currency
rates. -- Based on expected gross capital expenditure, divestments and recoveries from advance payments made for aircraft
orders, we expect cash inflow from net investments in property, plant and equipment and financial investments to be
at least at the prior-year level in financial year 2021.
In addition, we are adjusting our statement made in the Annual Report 2020 for the adjustments expected in the financial year 2021 as follows: -- As a result of the sale of the 49% stake in RIU Hotels S.A. agreed in Q3 2021 and the expected positive disposal
result, we have also amended our estimate of the adjustments and now expect net benefits to be adjusted for the
financial year 2021. -- See also TUI Group Annual Report 2020 page 50
Structure and strategy of TUI Group
Reporting structure
The present Interim Report 9M FY2021 is based on TUI Group's reporting structure set out in the Annual Report 2020. -- See TUI Group Annual Report 2020 from page 26
Group strategy
TUI Group's strategy set out in the Annual Report 2020 should be continued after the effects of COVID-19 have subsided. -- See TUI Group Annual Report 2020 from page 23
Consolidated earnings
Revenue ? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Hotels & Resorts 74.0 4.5 n. a. 157.9 304.7 - 48.2 Cruises 1.1 2.0 - 45.0 2.7 483.6 - 99.4 TUI Musement 19.0 - 6.2 n. a. 37.5 294.2 - 87.2 Holiday Experiences 94.1 0.2 n. a. 198.2 1,082.5 - 81.7 Northern Region 56.0 15.3 + 266.0 215.1 2,202.2 - 90.2 Central Region 370.3 34.1 + 985.9 707.7 2,244.0 - 68.5 Western Region 120.5 20.4 + 490.7 222.6 1,095.5 - 79.7 Markets & Airlines 546.8 69.8 + 683.4 1,145.5 5,541.7 - 79.3 All other segments 8.7 1.7 + 411.8 22.3 86.2 - 74.1 TUI Group 649.7 71.8 + 804.9 1,365.9 6,710.4 - 79.6 TUI Group (at constant currency) 650.0 71.8 + 805.3 1,382.4 6,710.4 - 79.4 Underlying EBIT ? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Hotels & Resorts - 70.3 - 364.1 + 80.7 - 268.6 - 308.0 + 12.8 Cruises - 81.3 - 224.3 + 63.8 - 234.6 - 197.3 - 18.9 TUI Musement - 34.7 - 37.6 + 7.7 - 96.7 - 66.5 - 45.4 Holiday Experiences - 186.3 - 626.1 + 70.2 - 599.9 - 571.9 - 4.9 Northern Region - 289.8 - 177.2 - 63.5 - 708.1 - 592.4 - 19.5 Central Region - 105.4 - 219.2 + 51.9 - 377.4 - 398.7 + 5.3 Western Region - 87.6 - 96.3 + 9.0 - 247.3 - 285.9 + 13.5 Markets & Airlines - 482.7 - 492.7 + 2.0 - 1,332.8 - 1,277.0 - 4.4 All other segments - 0.8 - 53.4 + 98.5 - 45.9 - 118.0 + 61.1 TUI Group - 669.8 - 1,172.2 + 42.9 - 1,978.6 - 1,966.9 - 0.6 EBIT ? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. % Hotels & Resorts - 74.8 - 432.1 + 82.7 - 273.1 - 376.0 + 27.4 Cruises - 81.3 - 224.3 + 63.8 - 234.6 - 197.3 - 18.9 TUI Musement - 46.1 - 46.2 + 0.2 - 113.2 - 85.3 - 32.7 Holiday Experiences - 202.1 - 702.6 + 71.2 - 621.0 - 658.7 + 5.7 Northern Region - 293.1 - 195.3 - 50.1 - 734.1 - 618.7 - 18.7 Central Region - 110.6 - 347.9 + 68.2 - 334.7 - 448.3 + 25.3 Western Region - 102.0 - 152.5 + 33.1 - 268.5 - 351.5 + 23.6 Markets & Airlines - 505.6 - 695.6 + 27.3 - 1,337.3 - 1,418.4 + 5.7 All other segments - 40.3 - 57.9 + 30.4 - 88.3 - 124.9 + 29.3 TUI Group - 748.0 - 1,456.1 + 48.6 - 2,046.6 - 2,202.0 + 7.1
Segmental performance
Holiday Experiences
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Revenue 94.1 0.2 n. a. 198.2 1,082.5 - 81.7
Underlying EBIT - 186.3 - 626.1 + 70.2 - 599.9 - 571.9 - 4.9
Underlying EBIT at constant currency - 188.7 - 626.1 + 69.9 - 611.4 - 571.9 - 6.9
Hotels & Resorts
? million Q3 2021 Q3 2020 Var. % 9M 2021 9M 2020 Var. %
Total revenue 135.4 8.8 n. a. 282.2 591.2 - 52.3
Revenue 74.0 4.5 n. a. 157.9 304.7 - 48.2
Underlying EBIT - 70.3 - 364.1 + 80.7 - 268.6 - 308.0 + 12.8
Underlying EBIT at constant currency - 73.3 - 364.1 + 79.9 - 277.9 - 308.0 + 9.8
Capacity hotels total1 ('000) 6,640 373 n. a. 16,058 17,006 - 5.6
Riu 2,750 211 n. a. 7,532 8,410 - 10.4
Robinson 594 27 n. a. 1,194 1,364 - 12.4
Blue Diamond 1,289 - n. a. 3,321 2,298 + 44.5
Occupancy rate hotels total2 48 23 + 25 44 74 - 30
(in %, variance in % points)
Riu 59 24 + 35 48 81 - 33
Robinson 48 34 + 14 48 67 - 19
Blue Diamond 57 - n. a. 46 75 - 29
Average revenue per bed hotels total3 70 49 + 44.4 67 73 - 8.8
(in ?)
Riu 56 41 + 38.4 56 69 - 19.7
Robinson 98 107 - 8.6 95 97 - 2.5
Blue Diamond 104 - n. a. 99 123 - 20.2
Revenue includes fully consolidated companies, all other KPIs incl. companies measured at
equity.
1 Group owned or leased hotel beds multiplied by opening days per quarter
2 Occupied beds divided by capacity
3 Arrangement revenue divided by occupied beds 283 hotels were open as at the end of the period (79% of Group hotel portfolio), increasing from 122 at end of H1 2021, reflecting hotels which were able to reopen across destinations such as the Balearics, Canaries, North Africa, Greek Islands, Mexico, Turkey and Cuba.
Demonstrating the benefit of our diversified markets and destinations, our hotels have hosted customers from the local markets like Mexico as well as from the US in addition to our core European source market customers.
In Q3 2021 we delivered an occupancy rate of 48% and average revenue per bed of ?70.
Riu operated 85 hotels (out of 101 hotels) as at the end of quarter. Overall occupancy of 59% and average revenue per bed of ?56 reflects the continued demand for our Riu brand.
Robinson operated 19 hotels (out of 26 hotels) as at end of the quarter. Overall Q3 occupancy was 48%. The average revenue per bed of ?98 was driven by product mix.
Blue Diamond operated all but one of its 34 hotels as at end of the quarter. Overall occupancy was 57% and average revenue per bed was ?104.
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