Europe’s largest tour operator, TUI, has announced that in response to strong travel demand in the summer of 2024, it will use partner airlines such as Ryanair to offer more flexibility. The company intends to cooperate with airlines that follow a conservative strategy regarding airline capacity and want to limit growth targets due to supply chain issues and aircraft delivery delays.
TUI’s Strategy: Dynamic Supplier Access
TUI CEO Sebastian Ebel mentioned at a meeting in London that competition in the package holiday sector is increasing. Highlighting the presence of major players like easyJet and British Airways in the market, Ebel said, “When there is an oversupply in the market, we will gain an advantage by providing dynamic access to these suppliers.”
Decline in Demand for Turkey
Sebastian Ebel stated that Turkey, a long-time popular holiday destination for British and European tourists, has lost some of its appeal due to rising costs. The CEO emphasized that alternative destinations are starting to rise in prominence and noted that the company adopts a flexible approach based on customer demand.
TUI to Adopt the Amazon Model
TUI aims to go beyond package holiday services by offering a broader range of entertainment and experience packages. Comparing the company’s business model to Amazon, Ebel said, “Amazon started with books, then expanded into many areas. Our essence is entertainment; we’re building a structure that encompasses all kinds of experiences, not just sun and beach.”
Expanding Global Flight Network
TUI aims to increase its global presence by expanding into distant markets such as Southeast Asia, China, and Latin America. Ebel emphasized, “Instead of relying on a single market, we are creating a strong portfolio spread across many markets,” noting that TUI intends to create a more resilient tourism ecosystem in the future.
It appears that TUI aims to maintain its competitive advantage in the tourism sector through dynamic airline partnerships, new entertainment services, and global expansion initiatives.
