TUI Travel offers its customers a broad product portfolio, ranging from package tours all the way through to its specific portfolio of specialist products. It operates under the Mainstream, Accommodation & Destinations, Specialist & Activity as well as Emerging Markets Businesses.
The Mainstream Business accounts for the largest share of TUI Travel’s business operations. It comprises all activities in the package tour segment from distribution via tour operation to aviation. Mainstream is made up of several integrated tourism groups, each with a focus on a specific source market. Moreover, TUI Travel holds leading market positions in several, often highly fragmented specialist and active holiday markets and occupies promising positions in growth markets such as Russia, China and India.
Due to its broad customer base in over 27 source markets, TUI Travel is able to compensate for different trends in individual source markets or product groups. In addition, TUI Travel pursues a flexible capacity management policy in its Mainstream Business. Only a very small portion of flight and hotel commitments are fixed by means of contracts.
The flight capacity of Group-owned airlines is primarily oriented towards the needs of the respective tour operators. Thanks to staggered leasing agreements for the aircraft used by the Group’s own airlines, with non-Group third-party airlines providing almost one third of the flight capacity required, TUI Travel is able to respond flexibly to changes in demand.
Selective investments in Group-owned property, plant and equipment as well as financial investments are only effected if the invested capital will produce an appropriate yield and enable the Group to reach corresponding unique selling propositions vis-à-vis its competition, for instance in renting out its own charter yachts.
Strong market positions in the various source markets and product segments result in well-tapped economies of scale. Thanks to a high proportion of exclusive and differentiated product in all four businesses, TUI Travel offers its customers far-reaching flexibility and attractive choice in searching for and booking tours. The travel products are sold via different, partly controlled sales channels including the Internet. With its extensive market presence and strong brands, TUI Travel gains strong customer loyalty.
TUI Hotels & Resorts owns hotel capacity in existing and potential growth destinations which will be expanded selectively. Preference is given to asset-light management contracts and joint ventures. At the same time, the unique selling propositions of the individual hotel brands are to be further emphasised and offerings for clearly defined target groups will be developed within the existing portfolio. Occupancy of Group-owned hotels will be optimised by means of distribution via tour operators but also the selective establishment and expansion of online sales.
With its fleet, Hapag-Lloyd Kreuzfahrten occupies a leading position in the German-speaking market for luxury, expedition and study tours. This position will be reinforced by the planned commissioning of MS Columbus 2 (2012) and MS Europa 2 (2013).
TUI Cruises is the first national provider to have occupied the premium volume segment in the German-speaking market for cruises. Mein Schiff 1 and Mein Schiff 2, the vessels of TUI Cruises, will stand out even more strongly from its competition in future because of the values they embrace: individuality, diversity and enjoyment.