Tui relies on travel agencies: the future of travel despite challenges!

Tui relies on travel agencies: the future of travel despite challenges!

The tourism industry is at a turning point and TUI Group continues to rely on the important role of travel agents and personal advice. In a recent conversation, CEO Sebastian Ebel expressed the challenges facing the industry and presented strategies that are intended to take TUI to a new level. “We have to emphasize the importance of tourism as an economic sector and strengthen the industry,” said Ebel.

A central point in TUI's strategy is the expansion of the service offering through digital solutions. The company plans to expand its own app as a leisure companion in order to be able to offer more offers to local travelers. This is in line with the overall strategic direction, which aims at integration and differentiation to achieve profitable growth, as highlighted on TUI's website. The strategy is divided into the areas of holiday experiences as well as markets and airlines.

Strategic realignment

TUI has withdrawn from the German Travel Association in order to address louder issues and place a stronger focus on important industry concerns. According to Ebel, TUI plans to make the classic package holiday more flexible and expand dynamic packaging. This will be done in close cooperation with low-cost airlines such as Ryanair and Easyjet in order to expand the offering for customers.

Another aspect of the company's strategy is growth in new markets, particularly in countries such as China and South America. TUI wants to expand local offerings and thus increase market shares. The aim is to develop TUI into a global company with a wide range of hotels, resorts, cruises and experiences.

Sustainability and customer loyalty

Sustainability is a central concern at TUI. The company wants to promote sustainable rail travel, but faces national hurdles. Ebel sharply criticized Deutsche Bahn for delays and a lack of reliability. In the spirit of environmental and social responsibility, TUI invests in ESG initiatives to achieve sustainability goals and increase customer satisfaction.

TUI's marketing and sales strategy aims to maximize customer lifetime value and reduce sales costs. The TUI brand should also be strengthened in existing and new customer segments. An example of this is the planned improvement of the app to increase the proportion of digital travel.

Employee commitment

Employee commitment is seen as the key to TUI's success. The company's people strategy focuses on digital, engaged and inclusive frameworks. The results of the TUIgether+ survey show that employee engagement increased by eight points to 80 out of 100 points, indicating positive developments in employer branding. TUI was awarded the “European Excellence Award 2023” for this.

In the cruise industry, TUI is also focusing on growth through investments in new ships and differentiation in offerings. The Marella Cruises fleet is being expanded with new product features. In order to further improve the competitive situation, a new platform strategy is being worked on that supports the scalability and global expansion of the brand.

Overall, it shows that TUI is not only adaptable, but also proactively preparing for future challenges in the tourism industry.