TUI costs climb due to Iran war, Jamaica hurricane charges hold

Europe’s largest tour operator, TUI Group, which shuttles guests to seven Riu-branded all-inclusive resorts across Jamaica’s north coast, said its one-off costs from the Iran war have climbed to €60 million, bringing the group’s combined extraordinary charges to €81 million when paired with an unchanged bill from Hurricane Melissa.

“The TUI-specific direct one-off €60 million [relates to] the Iran war and the two ships, the repatriation, and which is almost forgotten, the €21-million Jamaica hurricane cost,” said Chief Executive Officer Sebastian Ebel in an earning call this week.

The Iran-related figure grew from €40 million in the previous quarter, driven by the stranding of two Mein Schiff cruise liners in Gulf ports for weeks and associated repatriation costs.

The Jamaica charge remains as previously reported: €15 million in lost hotel revenue and margin at its resort properties — which span Montego Bay, Negril, Ocho Rios and Falmouth — alongside €6 million in repatriation costs incurred by the Markets and Airline division to bring stranded holidaymakers home.

However, the storm’s aftershock continues to weigh on forward bookings. TUI said it expects available bed nights to rise by just one per cent in the current fourth quarter, “driven by the expansion of our portfolio, offset to an extent by lower capacity in the Caribbean as a result of the Jamaica hurricane”. Booked occupancy, the company added, “reflects both the aftermath of the Jamaica hurricane and the effect of the geopolitical environment on hotels in the Eastern Mediterranean, as well as the ramp-up of new hotels”.

TUI’s locally affiliated hotels include the Riu Montego Bay, Riu Palace Jamaica and Riu Reggae in Montego Bay; the Riu Palace Tropical Bay and Riu Negril in Negril; the Riu Ocho Rios; and the Riu Palace Aquarelle in Falmouth, a 753-room resort that opened in February 2025 — just eight months before the hurricane struck. A new Royalton CHIC Jamaica Paradise Cove, a 345-suite adults-only property in Runaway Bay, is also being developed under a joint venture.

The German-listed group reported a 28 per cent dip in nine-month earnings before interest and tax to €118.3 million. Revenue for the three months to June fell six per cent to €5.8 billion, while nine-month revenue declined 2.7 per cent to €14.4 billion.

The company said core demand across its hotel leisure brands “remains strong, driving higher rates as we continue to expand our offering globally”, with average daily rates across the broader Hotels and Resorts segment running four per cent ahead of the prior year.

TUI’s 442-property global hotel portfolio shrank by 16 units from a year earlier, though that reduction was driven primarily by the termination of 33 management contracts in Cuba rather than by storm damage. Excluding Cuba, the company added 17 hotels on a net basis.

business@gleanerjm.com