Unpacking TUI’s New Hotel Strategy
Skift Take
Not only is TUI making a big bet on its own branded hotels, it wants to try and get independent hotels onto its new digital platform. How many are really going to want to get involved, and might it be better to try to fix its underperforming tour operator division?
Global tourism giant TUI over the last few years has placed a greater emphasis on its own exclusive content. In some ways, this has helped insulate it from the factors that led to the demise of Thomas Cook, but it still has a ways to go.
In its most recent earnings update, it floated the idea that it could become the Amadeus for independent hotels, leveraging its digital-only distribution platform GDN-OTA.
The idea behind the online venture is to expand TUI outside of its core markets, like the United Kingdom and Germany, into countries like China, India, and Brazil. Instead of using physical stores, tour operators, and hotels it will be asset-light.
"As we expand our hotel and cruise portfolio, we are also exposed to greater capacity risk — we can currently provide around 100 million bed n
