TUI confirmed its further expansion in the sector of dynamic travel packages through new agreements with low-cost airlines.
TUI Group CEO Sebastian Ebel said the group is in talks with carriers with a view to signing contracts in time for the summer of 2024.
“It is our clear goal to connect directly with airlines, not through a GDS, and there is much we need to do to improve our competitiveness in connecting directly with airlines,” Ebel explained.
He said the UK is a particular priority for dynamic packages, as this market lags behind, compared to other markets such as Germany.
“Germany started in 2015, while the UK started very late, unfortunately. Therefore, the improvement will be significant in the UK,” he said, speaking to reporters at the group’s financial results presentation today, Tuesday 13 February.
Dynamic packages will play a key role as TUI seeks to re-establish its position in the UK and close the gap between it and the UK market leader Jet2.com and Jet2holidays.
According to Mr. Ebel there are many opportunities for the company to improve its position in the UK market.
Overall, TUI’s dynamic plan sales increased 24% year-over-year in the company’s first fiscal quarter to 600,000, with app sales accounting for 6.6% of all TUI sales.
Meanwhile, TUI plans to leverage new technologies to enter more markets. “We want to bring TUI to the world, to create a global company, and we see markets that are even more attractive than central Europe,” Ebel said. And he named Poland and the Czech Republic as emerging markets. He said the company has started to grow in Spain and Portugal and announced its expansion into Italy, South and North America and Asia.
