TUI under pressure: Can Europe's tourism save the Transatlantic?

TUI under pressure: Can Europe's tourism save the Transatlantic?

In the current market environment, Barclays shows an optimistic attitude towards TUI AG. In their latest analysis, the analysts reiterate the “overweight” recommendation for the TUI share, which is currently at EUR 7.65 and is therefore close to its 52-week high. The analysis highlights various perspectives on the tourism market, in particular the positive outlook for intra-European travel and short-haul flights, which are seen as key growth drivers. In contrast, Barclays expresses skepticism about North Atlantic routes, which brings TUI's strategic decisions into focus. Loud Exchange Express TUI benefits from its focus on the European market, as the company's activities there appear to be more stable compared to the uncertainties in the international long-haul business.

TUI can look back on an impressive brand history and will celebrate the 50th anniversary of its “ROBINSON CALA SERENA” resort on Mallorca in 2025, which underlines the company's solid market roots. Barclays analysts also see better opportunities for focused tourism companies such as TUI compared to large network airlines. Nevertheless, the question remains whether TUI can use its strength in the European market to compensate for any weaknesses in the transatlantic business.

Market position and corporate structure

TUI AG is considered one of the largest tourism groups in the world and is based in Germany. The company operates around 1,200 travel agencies, over 400 of its own hotels, 17 cruise ships and five European airlines with almost 130 aircraft. In 2024, sales exceeded 23 billion euros, which is the highest value in the company's history. Most notably, the Northern Region's most profitable market, which includes the activities of tour operators and airlines in the United Kingdom, Ireland and the Nordic countries, accounted for almost 40 percent of TUI's global revenue, as Statista reported.

Great Britain is of particular importance within the Northern Region. TUI has more employees here than in Germany and operates over 300 branches, making it one of the travel agencies with the most locations in the UK. Despite competition, TUI was one of the main brands for package holiday bookings in the UK in 2024, but ranked behind Jet2 Holidays. In Germany, however, TUI topped the list of package holiday bookings, ahead of competitors such as Alltours and Ab-in-den-Urlaub.

Challenges in important markets

In Spain, however, a different picture emerged: only three percent of respondents named TUI as a provider of package holidays, while Viajes El Corte Inglés and eDreams showed significantly stronger brand preferences. These differences in brand perception highlight the challenges TUI faces in different markets. To further expand its leadership position in the global travel agency industry, a stronger presence in these key markets could be crucial.

In summary, it can be said that despite existing challenges, TUI AG is in a promising position due to its strategic focus on the European market and the positive development in intra-European travel. The coming months will show whether the company is able to further expand its strengths and successfully master the challenges in international business.