Our Strategy

  • As the world’s leading integrated tourism group, we operate in all stages of our customers’ holiday experience, from marketing and sales to aviation, destination services and accommodation.
  • The core of our offering will be our own hotel and cruise brands.
  • Growth in our hotel and cruise brands is enabled and de-risked in having strength in direct distribution and by our direct customer relationships, creating a virtuous circle for sustainable growth.
  • We have a resilient model, prepared for current and future changes. It allows us to mitigate capacity risks, respond quickly and flexibly to market changes and actively shape overall situations and markets.
  • We take advantage of global economies of scale resulting from our size and international scope to deliver competitive advantages and have defined six scaling platforms as a framework: TUI Brand, Aviation, Hotels, Cruises, Destination Services, IT.
  • We use our local strength at crucial points in the competitive arena, to be close to customers and their individual needs.
  • We believe a clear focus on sustainability differentiates us from the competition and generates value.

Our business model

Our growth roadmap

1.) Growth in Hotels and Cruise Brands

Accommodation (hotels and cruise ships) is the key differentiator in the customer holiday experience and the key driver of satisfaction and retention rates.

  • Growth will be focussed on our core, unique brands – these brands have been selected due to their strong resonance with their respective customer segments (and therefore competitive advantage) and their ability to be further scaled.
  • We already delivered 18 openings and repositioned two hotels to date (30 September 2016).
  • We expect approximately 40 to 45 further openings by the end of 2018 / 19 plus further repositioned hotels.
  • We will further expand our cruise ship fleet:
    • TUI Cruises will add three further new builds over the next three years.
    • Hapag-Lloyd Cruises has announced the modernisation and expansion of the expedition cruise fleet, with two new builds arriving in 2019.
    • Marella Cruises is continuing its path of modernisation; in Summer 2017 TUI Discovery 2 will join the fleet; In addition, Mein Schiff 1 and Mein Schiff 2 will move to the UK from the TUI Cruises fleet in 2018 and 2019.

2.) Direct customer relationship

Growth in our hotel and cruise brands is enabled and de-risked through the strength of our direct distribution and customer relationships, creating a virtuous circle for sustainable growth. This also gives us a competitive advantage compared with other hotel and cruise companies with lower levels of direct distribution.

  • Capitalising on the strength of the TUI brand on a global scale

  • Increasing direct and online sales

  • Leveraging our direct relationship with the customer using our global IT platforms

  • Driving operational efficiency improvements

  • Enhancing top line growth by adding further flexibility for our customers

  • Market leading positions which we will continue to grow

3.) Balance sheet strength and flexibility

We have a strong and flexible balance sheet that enables and supports further growth. We will maintain our strict financial discipline to ensure an optimal capital allocation:

  • Strong operating cash flow provides finance for investments and dividend

  • Focus on meaningful investments aligned with our strategy

  • Deliver merger synergies

  • Deliver against financial targets and focus on our rating

  • Committed to paying an attractive dividend

  • Continue to maximise value of non-core businesses