2 March 2018

More bespoke holidays – and more guests

They work where others go on holiday – reps, trainers, drivers and technicians working for TUI Destination Services. A total of 6,500 employees in 115 destinations around the world directly contribute to relaxed and fun-filled holiday experiences of TUI’s guests. In future, the segment will play an even stronger role within TUI Group. According to Fritz Joussen, CEO of TUI Group, Destination Services is a hidden champion with big potential. TUI knows its guests, the guests know TUI. This should enable the company to develop more and better service offerings and generate additional turnover. The segment has therefore been defined as one of TUI’s strategic growth areas.

In order to upgrade TUI Destination Services to reflect its role as an organisational unit, it is now carried as a separate segment in the statement of financial position: Its operations and results are summarised and reported separately alongside the Hotels & Resorts and Cruises segments.

Every year, TUI Destination Services now delivers 24 million transfers for around twelve million guests – outnumbering the population of countries such as Belgium and Greece. In order to provide these services, TUI Destination Services operates one of the world’s largest bus fleets, comprised of 1,000 buses and minibuses. The vehicles are also used to deliver 4.6 million excursions and tours every year, e.g. through deserts, to mountains or other natural and cultural treasures.

The envisaged growth roadmap includes more digital offerings and services in the holiday regions. Digitalisation enables TUI to exclusively provide relevant, bespoke offers to each customer.

Digitalisation as a growth driver is enabled by CRM (Customer Relationship Management). CRM systems help sort, systematise and structure data from the different travel markets. This, in turn, creates a considerably better view of the customer and customers’ preferences – to identify tailored offers and services. According to a study carried out by Harvard Business School, selective relationship management can significantly increase a company’s profits. According to the study, winning a new customer is around five times more expensive than retaining an existing customer. TUI provides a broad range of offers before, during and after the journey. Modern CRM systems are used to develop tailored offers for customers and generate additional turnover. Digitalisation thus has the potential to enhance the customers’ holiday experiences, as it enables even more personalised offers based on their individual needs and preferences. It also increases the number of regular customers for the company.