If you followed German news in the late summer of 2019.....we had the Thomas Cook travel agency bankruptcy, and a colossal chaos that occurred with it.
Well....if you go and view ARD news this morning (public German TV, Channel One)....there's potential for more financial issues with Germans and vacations for 2020.
There's a meeting being held with the TUI Group, and their financial pages don't look that great either.
Tui for the record.....is a major German travel agency, and I would estimate that out of every hundred Germans....at least twenty will use Tui for some travel purpose each year....mostly for packaged trips (hotel and flight).
Profit for 2019....is way down from 2018 (from 727-million Euro to 416-million Euro).
What really drove their problems? That stupid Boeing 737-Max episode.
So the general financial view of Tui? Well....here's the thing....Germans need vacations on a yearly basis, and Tui is regarded as the four-star agency to book with, and feel confident that the hotel and flight will occur, with minimum issues. The other thing is that they are operating with a profit....not at a loss as Thomas Cook was doing.
At the end of this discussion....the people most upset are the stockholders, with a smaller dividend. The customers? They are all somewhat positive. If some major issue popped up and another 50-percent drop in profits were to occur? Then I'd start to worry in the spring of 2021 about the company. Other than this Coronavirus, and the continual spiral for the Boeing planes......there's not much out there to worry about.
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