TUI Group Doesn’t Want to Be Known as a Tour Operator Anymore
Skift Take
TUI’s evolution to that of an end-to-end travel provider is set to accelerate next year. It is fast becoming a tourism company in a class of its own.
TUI Group is to spend $1.1 billion (€1 billion) over the next year transforming itself into what it calls a “content” business as it continues its shift away from a distribution and tour operating model.
The move will see increased investment in key areas such as hotels and cruise ships, which the company believes will make it a less seasonal business with a higher cash conversion.
TUI Group’s expansion plans come on the back of another profitable year. For the 12 months to the end of September 2016, the company made a pre-tax profit of $656 million (€618.3 million) — an increase of 32.7 percent.
The growth in profit came despite certain challenges with geopolitical problems in Turkey and North Africa costing the company around $53 million (€50 million).
Growing cruise and hotels
TUI’s desire to control more of the cust
