TUI Group, a travel and tourism giant, is embarking on a new chapter of growth with its strategic vision to become a Global Curated Leisure Marketplace. This bold move is fueled by the company’s remarkable expansion over the past two years, fueled by strategic investments in unique hotel and cruise experiences, as well as cutting-edge IT platforms. These platforms, designed to enhance sourcing, sales, production, and pricing, are laying the foundation for TUI’s future success.
To capitalize on this momentum, TUI is expanding its product offerings beyond its core range to include more third-party options. This will give customers greater flexibility and choice, with dynamic packages and single components supplementing the traditional package deals. TUI also aims to personalize customer experiences, enhance ancillary services, and maintain the exceptional service that has become synonymous with the brand.
The company’s successful retail and online direct channels will be central to its growth strategy. To maximize its potential, TUI is realigning its Markets + Airline division, introducing a new structure that will drive efficiency and profitability. This new structure will focus on three key areas:
1.
Integrated Functional Marketplace:
This will enable TUI’s tour operator business to scale rapidly globally.2.
Expansion Businesses:
A dedicated unit will be established to explore new product categories and markets.3.
Commercial Operations Enhancement:
TUI Airline will enhance its commercial operations to seize future growth opportunities.Sebastian Ebel, TUI Group CEO, emphasized the significance of this transformation, stating, “We have reported double-digit growth for the eighth consecutive quarter in underlying EBIT in August. This demonstrates the strength of our business strategy. We will accelerate our growth plans and are therefore now taking the next step in our transformation. Markets + Airline plays a key role in this: In addition to being a successful package tour operator with a strong brand, we will offer a growing portfolio of products, services and destinations. The aim is to sell more products to more customers globally throughout the whole year. The Markets + Airline transformation will help us to grow our TUI smile globally.”
A New Organizational Structure for Markets + Airline
As part of its transformation, TUI is implementing a new organizational structure for its Markets + Airline division. Key functions, such as Commercial and Marketing, will be integrated across regions, streamlining operations and optimizing resources. This streamlined approach will enhance efficiency and ensure a more focused customer experience.
Stefan Baumert, a seasoned TUI executive, has been appointed as the new Chief Commercial Officer, overseeing product development, sourcing, and trading tools. Marketing will also be centrally managed, with the appointment of a new leader to be announced soon.
Regional teams will be responsible for meeting local customer needs, managing flight capacity, trading, distribution, and local marketing efforts. Each region will have a dedicated Managing Director, who will report directly to David Schelp, CEO of Markets + Airline, and will be responsible for driving regional performance.
The regional leadership structure includes:
* Arjan Kers: Belgium and Netherlands (BeNe)
* Benjamin Jacobi: Germany, Austria, and Switzerland (GAS)
* Jessica Enbacka: Nordics
* Neil Swanson: UK & Ireland (succeeding Andrew Flintham)
Each region will maintain its own profit and loss accountability, ensuring a localized approach within the global structure.
Expansion Businesses Unit: Accelerating Growth
To drive growth beyond its existing portfolio, TUI is launching an “Expansion Businesses” unit. This unit, led by Managing Director Mircea Tudose, will function as an incubator for new ventures, focusing on the roll-out of new product platforms, attracting new customer segments, and entering untapped source markets. Tudose will report directly to David Schelp, ensuring that the unit has a strong strategic connection to the broader group goals.
TUI Airline Expands Commercial Operations
TUI Airline is poised to expand its commercial operations, driven by the evolving airline industry and the shift toward leisure travel. Under the continued leadership of CEO Marco Ciomperlik, the airline will enhance its commercial setup, seizing growth opportunities while aligning closely with regional needs. This approach will ensure that TUI Airline remains competitive and contributes significantly to the Group’s broader growth objectives.
All organizational changes will come into effect on October 1, 2024, positioning TUI for continued growth and innovation in the dynamic travel and tourism industry.
David Schelp, CEO Markets + Airline, expressed his enthusiasm for the transformative changes, stating, “As the market environment and customer demand are changing, we now will accelerate our transformation to ensure that we deliver our ambitious growth targets. The new organisation will establish clear accountabilities and allow for scalability, more agility and maximisation of our opportunities in the global tourism market. Customers will be able to book more flexibly and choose from an even wider product range. The integrated business model with Holiday Experiences – which includes Hotels & Resorts, Cruises and Activities – and Markets + Airline will further unlock significant value for our shareholders. The transformation will support in delivering our growth ambitions and together with my new leadership team, I look forward to accelerating the transformation and successfully implementing the new set-up.”
