TUI

“Theresa May’s victory at last night’s MP vote has given another lift to sterling, now trading at $1.267 as the market seems happier there will be consistency in the person leading the Brexit negotiations. “While there are still many unknowns regarding Brexit, not having to contend with a new Conservative leader and how they may pick up Brexit talks is definitely a positive as far as many investors are concerned. “The UK-focused FTSE 250 index moved up 0.2% to 18,028 with notable strength among insurers and retailers. The FTSE 100 moved 0.3% higher to 6,897 with banks, travel stocks and miners leading the way. European markets also fared well including a 0.5% gain in Germany’s DAX index,” says Russ Mould, Investment Director at AJ Bell.

TUI

“The diverging fortunes of travel groups TUI and Thomas Cook continues to widen, as evident by the former’s full year results which show a fourth consecutive year of underlying earnings growth.

“Anyone expecting TUI to follow in the footsteps of its sector peer Thomas Cook with a profit warning will be severely disappointed. TUI is soldiering ahead with expansion of its own hotel and cruise offering and its experience holidays are seeing considerable growth, offering the likes of Italian cookery classes in Tuscany or wine tasting at a Portuguese vineyard.

“There is clear evidence that consumers increasingly want experiences over material goods. TUI has spotted this trend and repositioned its proposition accordingly.

“Rather than simply fly a customer to a different country and plonk them in a hotel and not bother about what they do in the day or night time, TUI is now curating the whole experience. It’s a clever move and one that Thomas Cook may look at in envy.”

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