EUR 2.6 billion turnover makes TUI Europe's number one in direct sales German masterbrand portal planned to start up in 2005

Berlin, Hanover, March 12, 2005

The multichannel strategy of TUI, Europe's leading travel company, is bearing fruit. A turnover of € 2.6 billion makes TUI the leader in Europe for direct travel sales. In 2004, internet sales alone rose by 73%, from € 725 million in the previous year to € 1.25 billion. Some 60 percent of turnover was made in the Source Market North, where the UK and Scandinavian internet markets are very popular. Throughout Europe TUI has more than 70 distribution and tour operator booking websites, which handled about 10 percent of TUI's total tourism turnover. TUI chief executive Dr Michael Frenzel put it in a nutshell at the press conference at the International Tourism Exchange in Berlin: "We are the online powerhouse in Europe."

The Group is benefiting not only from the expanding growth of online bookings, but also from a growth in bookings through other direct sales channels, such as call centres and TV stations. Another € 1.3 billion Group turnover was generated here in 2004. "This does not mean that the travel agencies are losing this turnover," said Frenzel. Rather, new customers are being attracted by the direct sales platforms, customers who would otherwise have booked their travel components, such as flights and hotels, directly with the service providers without the help of travel shops and tour operators. Frenzel stressed that the travel agency as such will remain far and away the most important sales channel in Europe. This is supported by a TUI survey of 3,000 holiday customers in six European countries, in which travel agencies were rated considerably better than the internet especially in the areas of personal care and attention, security when paying and individual advice. "The traditional travel agency will be able to defend its market position by providing quality consulting," added a confident Frenzel.

TUI develops German masterbrand portal www.tui.com
In spite of the good position held by TUI, the internet offering is to be extended and made even more user-friendly. The TUI internet strategy is aimed at standardising and integrating the many offers of the World of TUI that are currently available. In the United Kingdom, for instance, under the powerbrand of Thomson, a masterbrand portal has already been successfully set up with all the offers for the British market. The German market is about to follow this example. Under www.tui.com it is intended in the second half of 2005 to bring together all the internet activities of sites such as www.tui.de, www.hapagfly.com, www.hlx.com, www.wolters-reisen.de, www.1-2-fly.de, www.airtours.de and www.robinson.de. Internet users will then find on one site the entire product range of the German source market.

Behind the various source market portals, from a technical point of view, will be a common travel platform of the World of TUI with content modules for hotels, airlines, rental cars and incoming services. Individual customers and travel agencies can then combine their various holiday components throughout Europe, chosing from a broad range of offers. At national level the classic package tour arrangements supplement the offering. "This mixture of European platforms for the modular market and national offers for the package tour market will put us from a production point of view in a strong competitive position. With our existing superior content we will consolidate our leading market position even more," said TUI chief executive summing up the future plans.


For further information please contact:
Björn Beroleit, phone +49 511 566-1310
Nicola Gehrt, phone +49 511 566-1435