How TUI Weathered Europe’s Summer Heat Wave
Photo Credit: An image of a TUI Group cruise ship. The company came out a tough 2018 relatively unscathed. TUI Group
Skift Take
TUI seems to have mitigated the potential damage from a challenging operating environment. It will be interesting to see how it sustains its growth over the coming years.
Travel giant TUI Group managed to mitigate with the effects of this summer’s northern European heat wave thanks to the growth of its hotel and cruise business.
The company thinks of itself less as a traditional tour operator these days and has spent a decent amount of money in recent years investing in property and ships.
When the two TUIs merged in 2014, only around 30 percent of earnings came from the hotels and cruise businesses. In just four years, they have grown to 70 percent, although its revenue only accounts for 15 percent of the group total.
Hotels and cruises are higher-margin areas with less seasonality. Controlling th
