Tui Group is planning a recruitment freeze, the postponement of non-critical projects and a cut in administration costs due to the impact of the coronavirus outbreak on its travel bookings.

In a statement, the travel company said that it is reviewing capacity and set up task forces across all markets after a decline in bookings in the last week.

A spokesperson said: “Financial year 2020 started exceptionally well in terms of booking trends which continued in January.

“Since the announcement of the first Covid-19 cases in northern Italy, Tenerife and the related developments in other regions, in line with the industry, we have experienced weaker bookings in the last week, especially for our remaining, near-term and lower volume winter season.”

“Due to the strong trading prior to last week, year to date bookings remain well above prior year.

“At this point in time, we only see a marginal effect on our operations, for example due to necessary re-routing of Mein Schiff 6 in Asia.”

The group added: “Given that the situation is still evolving, it is not yet possible to estimate the potential financial impact across our business of the current Covid-19 development. We are continuously monitoring the situation very closely and actively evaluating the implications for our business.

“The health and safety of both our guests and employees remain our top priority. We have therefore set up task forces across all our markets and we are in close contact with the relevant authorities and ministries.

“All Tui companies, including hotel and resorts, cruise companies, airlines, follow predefined and established procedures to prevent infections and have increased their hygiene measures.”

The travel group has focused on three priorities. It will implement “additional and various cost measures” such as budget restrictions in admin areas, recruitment freezes and postponement of non-critical projects, review options for capacity management and deliver on initiatives towards becoming a more digital platform business.

For the latest information, visit gov.uk/guidance/coronavirus.