- Deputy CEO Johan Lundgren will be leaving TUI Group
- Focus on growing the company
- Flatter hierarchy, closer to its operational business in the markets
- Business operations will be grouped into three regions
- David Burling will join the Executive Board
Hanover, 12 May 2015.
Following the successful completion of the merger of TUI AG and former TUI Travel PLC integration of the two businesses is progressing faster than originally envisaged. To capitalise on this the Executive Board will be accelerating the creation of a simplified organisational structure reflecting the Group's focus on an integrated tourism business with clear accountabilities across the Group. The full integration of tour operating and own hotel and cruise ship operations will be implemented, creating a flatter hierarchy and allowing the company to be closer to its operational business in the markets. This new structure will bring the areas of tour operating, hotels and cruises under one organization and result in a number of changes in roles and responsibilities.
Johan Lundgren, Deputy Chief Executive and Managing Director Mainstream Markets, having been fully involved in the design and supportive of the new structure has taken the decision that he does not want to take up a role within it. He believes that now is the appropriate time to step down from the Executive Board and leave the Group, which he will do effective as of 31 May, 2015.
Business operations will be grouped into three regions in future.
David Burling, today Managing Director TUI UK & Ireland and Member of the Group Executive Committee, will join the Executive Board with effect from 1 June, 2015. He will get overall responsibility for the UK & Ireland, Nordics (Sweden, Norway, Finland, Denmark), Canada and Russia, as well as the Group Divisions for Product & Purchasing and Aviation Platforms. Following the promotion of David Burling, Nick Longman, currently Mainstream Distribution & Online Director, is appointed Managing Director TUI UK & Ireland. His current team will move into Group Marketing.
Sebastian Ebel’s executive responsibilities will be extended. The management team of the Central Region (TUI Deutschland GmbH) with businesses in Germany, Austria, Switzerland and Poland and the new unit TUI Destination Services based on Mallorca will report into him. As in the past he will also be responsible for Hotels and Resorts, Cruise Ship Companies and IT.
Elie Bruyninckx will join the Group Executive Committee as a new member overseeing the Western Region. He will take on additional overall responsibility for France as well as his current responsibility for TUI Benelux with Belgium and the Netherlands.
Prof. Dr. Klaus Mangold, Chairman of the Supervisory Board of TUI Group:
“The integration is progressing very well. That’s why we are able to bring these formerly separately managed business areas under one organizational umbrella earlier than envisaged. We’re keeping the promises we made at the time of the merger and we are now implementing them ahead of schedule. TUI is going to be a fully integrated tourism business. The supervisory board hopes that the new organization structure will further strengthen TUI and its international competitiveness. I’d like to thank Johan Lundgren most sincerely for his services to TUI. He made a decisive contribution to the success of the former TUI Travel and he has supported the merger. The TUI supervisory board and I wish him all the best for his personal and professional future.”
Fritz Joussen, Joint-CEO of TUI Group:
"TUI is the world’s leading tourism business. On one hand we have global scale in brand, airlines, hotels and cruises on the other hand we hold market leading positions in all of our source markets. Now it will be essential to act on both global scale and local leadership. The new setup will reduce layers and make our company more agile and competitive. This will be the essential to stay ahead. We achieved the implementation of our integrated organization earlier then we had envisaged when we completed the transaction. Now we will focus on growing the company, improving our competitiveness, cost position and profitability. I want to welcome David Burling on the Executive Board and Elie Bruyninckx on the Group Executive Committee and wish them all success. I also want to thank Johan Lundgren for playing a crucial role in setting up the merger in 2014 and for his contribution leading the new TUI Group to a successful start. I wish him all the best."
Peter Long, Joint-CEO of TUI Group and former Chief Executive of TUI Travel:
"I am very sad that Johan has decided that he now wishes to leave the business to pursue new challenges outside the Group and I wish him every success for the future. He has been a key executive both within TUI Travel and more recently the TUI Group. With a keen focus on delivering operational effectiveness and consistent profit improvement as a Managing Director for the Mainstream Sector and Deputy Chief Executive of TUI Travel he successfully established a clear strategic framework for the Sector. As a result, between 2011 and 2014, profitability increased by some 48% from £ 370 million to £ 546 million. Johan is one of the most capable tour operators that I have had the pleasure of working with during my long career in leisure travel. He has accumulated close to 30 years of experience in the dynamic industry in which we operate and is truly an international businessman. His understanding of the importance of continuously evolving our product, giving our customers something they can only get from us, putting them at the heart of what we do, embracing technology to help deliver a superior customer experience, very effectively leading his team and delivering increased profitability are all things of which he can be justifiably proud. It is testament to our business that we have the strength and depth in our management team that we can so effectively promote from within to ensure that what we have achieved to date will continue after Johan's departure.”
Johan Lundgren, Deputy Chief Executive of TUI Group:
"I have thoroughly enjoyed my time with TUI and I am very proud of what we have achieved. I have relished the roles I have taken, playing a part in growing the business and delivering value to all stakeholders. This has been a very difficult decision for me to make but I am firmly of the opinion that now is the right time to leave the company and pursue my next opportunity outside the world of TUI. I’d like to thank our chairman Professor Mangold, the members of the supervisory board and my colleagues on the Group Executive Committee for respecting my decision. I wish them all the best.”