TUI Group nears online tipping point, updates on tours and activities
The amount of business it transacts itself, direct rather than through third parties, is also on the up, coming in at 74%, compared with 73% last time.
European travel giant TUI Group is integrating its “destination experiences” business into its global CRM platform, giving it the ability to cross-sell the inventory to customers during the post-booking pre-trip phase.
In the first half of the current year it has managed to reduce these losses, reporting an underlying EBITA loss of €158.6 million, which is a 26% improvement on last year. Turnover was up 7.2% to 6.81 billion euros.
It still sells “package holidays” but has transitioned into a hotel operator, a cruise line and most recently, a tours and activities provider. Or in TUI-speak, “destination experiences”.
TUI’s destination experiences ambitions were brought into the spotlight this year, beginning with the announcement at its AGM in February that this would be a strategic growth area for the business. TUI followed this up with a deal to buy the destination services businesses of Hotelbeds Group.
Another relevant example of TUI’s repositioning is the continued increase in the proportion of business which is transacted online – in the first half of the year the figure was 49%, up from 47% in the same period last year. And the amount of business it transacts itself, direct rather than through third parties, is also on the up, coming in at 74%, compared with 73% last time.
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