The TUI Group has successfully managed the immediate effects of the Covid 19 crisis. The recapitalizations have enabled the Group to trade actively again. Customers and business have returned and TUI is profitable again. Now, the company continues to focus on profitable growth in both Markets & Airlines and Holiday Experiences with product and customer growth embedded in the vertically integrated Central Customer Ecosystem strategy.
Grow market share
In the European source markets, TUI is the leader in packaged tour holidays. In some countries, such as Germany, market share was regained after the crisis. In other regions, such as the UK, competition is tougher, but here, too, market share is to be gained through additional capacity investments.
The tourism markets are changing rapidly. The range of flight connections is growing, hotel capacity is increasingly being marketed dynamically and directly, and TUI is also participating in these dynamic growth segments. Speed is of essence, which is why the Group has adjusted its IT strategy and is now focusing on dynamic packaging of flights and hotels for existing booking systems. In the coming months, the products will be further expanded and then rolled out in all source markets.
At the same time, the Group is growing in the Holiday Experiences segment with new ships, hotels and experience offerings. In the hotel sector, there are currently very good and many investment opportunities in the market, which can be realised through intelligent investment partnership models such as the TUI Hotel Fund or joint venture structures. This is how the hotel brand portfolio will grow further. In the cruise segment, we are growing through the commissioning of new ships and in the tours & activities segment, we are expanding the B2B area through partnerships with e.g. Expedia or National Geographic.
The Group has great potential to significantly reduce distribution costs through its vertically integrated approach. This is a major strategic advantage over competitors. The development of the "My TUI App" from a service to a marketing app also offers further advantages. With expansion of the experience offering, including in source markets, customer relevance and interaction with customers will be increased. The Group is already making progress in this area, but intends to focus even more on a uniform customer account format and a uniform payment system for the entire Group in the future.
The rapid end to the Covid crisis and the extremely strong recovery in demand have presented the tourism sector with quality challenges. However, TUI was able to respond quickly and demonstrate that the Group is able to provide the quality that TUI customers expect - be it in terms of the punctuality of flights or the quality of hotel experiences. The TUI brand stands for quality and a differentiated product offering. The good customer satisfaction is also reflected in the so-called Net Promoter Score (NPS).
Tourism is one of the largest economic sectors worldwide and makes an important contribution to development and prosperity. TUI is leveraging its experience and presence in vacation destinations for the sustainable transformation of travel. Together with partners, the Group is working to strengthen the positive effects of tourism for local people, reduce the environmental footprint and create experiences that are authentic and sustainable. With the publication of its sustainability agenda, TUI also unveiled its ambitious targets, which are validated and regularly reviewed by the independent Science Based Targets Initiative (SBTi).
Thanks to our growth initiatives, TUI is becoming bigger, more profitable and more global, making us an even more attractive employer. We promote talent and careers worldwide.