Pearson Edexcel A level GCE In Economics B (9EB0) Paper 1: Markets and how they work QP & MS JUNE
2024
, Number
Paper
■ ■
Advanced
PAPER 1: Markets and how they work
Turn over
P80957A
©2024 Pearson Education Ltd.
F:1/1/1/1/
, Answer ALL questions.
SECTION A
DO NOT WRITE IN THIS AREA
Read the following extracts (A–E) before answering Question 1.
Write your answers in the spaces provided.
Extract A
TUI Group lose market share to Jet2holidays
The TUI Group (TUI) has finally responded to being overtaken by Jet2holidays as the UK’s
largest tour operator.
TUI Chief Executive Sebastian Ebel said: “We want to be the market leader not only in
numbers but also in quality. We want to grow stronger than our competitors.” 5
The firm aims to take market share from rivals by broadening its product offering and
looking beyond its traditional core package-holiday customers. It is targeting the larger
DO NOT WRITE IN THIS AREA
and higher growth segments of the leisure market, such as accommodation only,
flight only, car hire, tours and experiences.
Sebastian Ebel referred to these potential new customers as ‘energised adventurers’ and 10
‘travelistas’. Energised adventurers are older, confident, more affluent and adventurous
holidaymakers interested in culture and exploration. Travelistas are younger, independent
and adventurous travellers who spend less on a holiday but travel more often.
TUI reported record holiday bookings for summer 2023 and 2024 now that global travel
restrictions have been lifted for consumers. 15
(Source: adapted from https://travelweekly.co.uk/news/air/jet2-has-done-very-well-filling-
gap-thomas-cook-left-says-tui-chief)
Extract B
Statement of comprehensive income of TUI Group Q3 2023 and Q3 2022 DO NOT WRITE IN THIS AREA
Q3 2023 (€m) Q3 2022 (€m)
Revenue 5 286.0 4 433.2
Cost of sales 5 018.4 4 313.4
Gross profit 267.6 119.8
Operating profit/(loss) 52.5 (331.2)
(Source: adapted from: https://www.tuigroup.com/en-en/investors/news/2023/
ir-news/20230809)
2
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, Extract C
TUI hails return to profit but warns of €25m additional costs from Rhodes’ wildfires
DO NOT WRITE IN THIS AREA
The package holiday operator TUI has enjoyed its first profitable April to June since
before the global health crisis but warned that it expects €25m additional costs from last
month’s wildfires in Rhodes. TUI had to evacuate 8,000 customers which represented 20%
of its customers on the island. 5
“The financial impact of the wildfires in recent weeks covering cancellations, customer
compensation, repatriation flights and welfare costs has added €25m additional costs to
our full year 2023 results,” the company said.
TUI said that Rhodes accounted for about 5% of its summer holiday offering this year,
and while bookings had been affected straight after the wildfires in Rhodes and southern 10
Europe, they had recovered quickly. It predicted summer bookings would still be 6%
higher than last year.
(Source adapted from: https://www.theguardian.com/business/2023/aug/09/tui-hails-
return-to-profit-but-warns-of-25m-hit-from-rhodes-wildfires)
DO NOT WRITE IN THIS AREA
Extract D
UK Interest (base) Rate (%) January 2022 – August 2023
(%) Base Rate 5.25%
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
DO NOT WRITE IN THIS AREA
1.5
1.0
0.5
0.0
Jan Mar May Jul Sep Nov Jan Mar May Jul
2022 2023
(Source: adapted from https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-
bank-rate)
3
■■■■ Turn over
2024
, Number
Paper
■ ■
Advanced
PAPER 1: Markets and how they work
Turn over
P80957A
©2024 Pearson Education Ltd.
F:1/1/1/1/
, Answer ALL questions.
SECTION A
DO NOT WRITE IN THIS AREA
Read the following extracts (A–E) before answering Question 1.
Write your answers in the spaces provided.
Extract A
TUI Group lose market share to Jet2holidays
The TUI Group (TUI) has finally responded to being overtaken by Jet2holidays as the UK’s
largest tour operator.
TUI Chief Executive Sebastian Ebel said: “We want to be the market leader not only in
numbers but also in quality. We want to grow stronger than our competitors.” 5
The firm aims to take market share from rivals by broadening its product offering and
looking beyond its traditional core package-holiday customers. It is targeting the larger
DO NOT WRITE IN THIS AREA
and higher growth segments of the leisure market, such as accommodation only,
flight only, car hire, tours and experiences.
Sebastian Ebel referred to these potential new customers as ‘energised adventurers’ and 10
‘travelistas’. Energised adventurers are older, confident, more affluent and adventurous
holidaymakers interested in culture and exploration. Travelistas are younger, independent
and adventurous travellers who spend less on a holiday but travel more often.
TUI reported record holiday bookings for summer 2023 and 2024 now that global travel
restrictions have been lifted for consumers. 15
(Source: adapted from https://travelweekly.co.uk/news/air/jet2-has-done-very-well-filling-
gap-thomas-cook-left-says-tui-chief)
Extract B
Statement of comprehensive income of TUI Group Q3 2023 and Q3 2022 DO NOT WRITE IN THIS AREA
Q3 2023 (€m) Q3 2022 (€m)
Revenue 5 286.0 4 433.2
Cost of sales 5 018.4 4 313.4
Gross profit 267.6 119.8
Operating profit/(loss) 52.5 (331.2)
(Source: adapted from: https://www.tuigroup.com/en-en/investors/news/2023/
ir-news/20230809)
2
■■■■
, Extract C
TUI hails return to profit but warns of €25m additional costs from Rhodes’ wildfires
DO NOT WRITE IN THIS AREA
The package holiday operator TUI has enjoyed its first profitable April to June since
before the global health crisis but warned that it expects €25m additional costs from last
month’s wildfires in Rhodes. TUI had to evacuate 8,000 customers which represented 20%
of its customers on the island. 5
“The financial impact of the wildfires in recent weeks covering cancellations, customer
compensation, repatriation flights and welfare costs has added €25m additional costs to
our full year 2023 results,” the company said.
TUI said that Rhodes accounted for about 5% of its summer holiday offering this year,
and while bookings had been affected straight after the wildfires in Rhodes and southern 10
Europe, they had recovered quickly. It predicted summer bookings would still be 6%
higher than last year.
(Source adapted from: https://www.theguardian.com/business/2023/aug/09/tui-hails-
return-to-profit-but-warns-of-25m-hit-from-rhodes-wildfires)
DO NOT WRITE IN THIS AREA
Extract D
UK Interest (base) Rate (%) January 2022 – August 2023
(%) Base Rate 5.25%
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
DO NOT WRITE IN THIS AREA
1.5
1.0
0.5
0.0
Jan Mar May Jul Sep Nov Jan Mar May Jul
2022 2023
(Source: adapted from https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-
bank-rate)
3
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