What's going on?

UK-listed TUI is Europe�s largest tour operator (think: all-inclusive holidays), and it said on Wednesday that it expects to make more money this year than it previously thought. Its stock jumped 1.5% after the sunny news!

What does this mean?

TUI said that bookings from its UK division had been particularly strong, with UK revenue for upcoming winter holidays up almost 30% versus a year ago. It seems that long-haul holidays, to places like Mexico and the Caribbean, are selling well after the company increased the number of long-haul holidays on offer. Turkey, the scene of political upheaval and terrorist attacks recently, has experienced a big drop in bookings. TUI has managed to shift customers that might have previously considered Turkey to other destinations.

Why should I care?

For the stock: Betting on long-haul travel is paying off.
TUI is the only tour operator to fly Boeing�s Dreamliner, an aircraft that allows passengers to travel long distances in relative comfort. It has also boosted its long-haul capacity. That means TUI has been able to take advantage of people�s desire to travel further distances (to get away from areas that are perceived to be more prone to violence such as Turkey and North Africa). As such, TUI is better equipped than rival Thomas Cook to take its customers to the Americas and Asia, which is giving it a competitive advantage.


The bigger picture: This is another company that�s bucking the Brexit blues.
After the Brexit vote, TUI�s stock got hit hard because investors were expecting the company�s profits to get walloped. For example, the much lower pound makes booking an overseas holiday more expensive. But actually TUI�s UK business has performed well (even better than Germany�s). That�s helped the stock jump 40% from its Brexit-induced selloff.