TUI review sees Hotelbeds carved from the business
TUI Group is near completion of a strategic review of Hotelbeds which includes a plan to “carve-out” the B2B accommodation brand from the rest of the business.
The review is likely to be completed in the next few weeks and will see Hotelbeds run as a standalone business once the destination management element is integrated into TUI’s tourism business.
Speaking during the company’s results to the year ended September 30 2015, co-chief executive Fritz Joussen said that about 60% of the profitability stays with the carved out company.
He said during the review TUI had considered the importance of Hotelbeds to the group and decided that while it is growing strongly and outperforms competitors, it is a “different animal and synergies are very limited.”
Hotelbeds increased EBITA to Euro 117 million while total transaction value increased 26% and room nights were up 18%.
Joussen said a potential disposal of the business is still a possibility supporting what he said back in May, during TUI’s Capital Markets day, when he said specialist & activity divisions had “seen many promising approaches.”
The specialist business is also undergoing a review to decide what elements might remain part of the tourism business and what is “not so close.” The review is likely to take a further three months.
The company sold its Laterooms brands to Cox & Kings for £8.5 million in October.
TUI reported that it had outperformed its guidance for its first year since the merger last year between TUI Travel and TUI AG with a 15.4% increase in EBITA to more than one billion Euro. Guidance for the coming year is a further 10% growth in EBITA.
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