Hanover/Paris, 17 June 2020

TUI is repositioning its business in France

TUI France faces comprehensive restructuring – focus on core brands and third-party distribution

TUI Group continues the repositioning of the company in the wake of the Corona pandemic. A comprehensive restructuring plan for the French regional entity TUI France was presented today. In future, TUI France will focus on the high-margin business with a few core brands. Offers that are high-volume but do not generate sufficient margins are removed from the portfolio. As a result, TUI France's business volume will decline. In addition, in France, the Group's own distribution network of 70 travel agencies is to be sold or closed.

As a result of the newly tailored product range and the changed distribution model, the company will be significantly leaner. The project foresees a reduction of 583 jobs, in the scenario of the closing of all own retail shops, which is approximately 60 per cent of the current TUI France staff base. The changes are now being discussed with the relevant committees and employee representatives in France. The future plan should then enable TUI France to break even from 2021 onwards.

TUI France was already loss-making before the pandemic. In a structurally challenging market with a high cost structure and low margins, the company had been making losses in recent years. In the wake of the corona pandemic, the situation for TUI France has again deteriorated significantly. A far-reaching package of measures is now needed to create a perspective for the company within the Group.

In May 2020, TUI announced that as a consequence of the Corona crisis, all business operations would be reviewed in order to steer the Group as a whole safely through the crisis and provide it with a stable future. Subsidiaries and regional entities that had been loss-making in recent years should be restructured.

Overall, the TUI Group aims to reduce its overhead cost base by 30 per cent worldwide. The restructuring of TUI France is a step towards making TUI more competitive and then emerging from the crisis stronger.

About TUI Group

The TUI Group is the world's leading tourism group and operates worldwide. The Group is headquartered in Germany. The TUI share is listed on the FTSE 250, the leading index of the London Stock Exchange, and on the Regulated Unofficial Market in Germany.

The TUI Group offers integrated services from a single source for its 28 million customers, 21 million of whom are in the European national companies. The entire tourism value chain is represented under one roof. This includes over 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson and 15 cruise ships, from the MS Europa and MS Europa 2 in the luxury class and expedition ships to the Mein Schiff fleet of TUI Cruises and cruise ships at Marella Cruises in England. The Group also includes Europe's leading tour operator brands and online marketing platforms, five airlines with more than 100 modern medium and long-haul aircraft and over 1,000 travel agencies. Besides the expansion of its core business with hotels, cruises via successful joint ventures and activities in holiday destinations, TUI is increasingly focusing on the expansion of digital platforms. The Group is transforming itself into a digital company.

Global responsibility for sustainable economic, ecological and social action is at the core of our corporate culture. With projects in 25 countries, the TUI Care Foundation initiated by TUI focuses on the positive effects of tourism, education and training and the strengthening of environmental and social standards. It thus supports the development of holiday destinations. The globally active TUI Care Foundation initiates projects that create new opportunities for the next generation.