TUI expects demand to remain resilient but increasingly shift toward destinations with room to accommodate more tourists, as Spain and Italy hit tourism capacity limits. Sebastian Ebel, TUI Chief Executive, noted that Spain is almost fully sold out, making growth difficult. Overtourism concerns have led to street protests in southern Europe and government measures like tourism taxes and restrictions on cruise traffic and short-term rentals. Ebel highlighted Egypt as poised for further growth and Turkey, where demand rebounded after hotels cut prices.

Local residents in some cities are pushing back against overtourism, with officials imposing caps on visitor numbers. The shift away from saturated markets reflects a broader trend in tourism management.

TUI’s strategy focuses on directing travelers to less crowded alternatives, leveraging price adjustments in Turkey and Egypt’s emerging appeal. This realignment underscores the challenge of balancing tourist numbers with sustainable infrastructure in popular destinations.

Ebel emphasized that demand resilience is key, but capacity constraints in Europe are forcing a geographic pivot. The company’s data shows a measurable decline in bookings to Spain and Italy compared to growth in alternative markets.