TUI's Markets + Airline business area by implementing a new operational model and structure aligned with TUI Group's strategic priorities. This is in line with the Group's strategy to be a growing, scalable, and global tourism business. The tour operator is to become a global marketplace that combines TUI's own differentiated products with a strong focus on package holidays.
TUI has seen significant growth in Markets + Airline as well as in Hotels & Resorts, Cruises and in Experiences operations over the last two years. The Group has not only invested in differentiated hotel and cruise products but also in IT platforms – particularly in procurement, sales, production and pricing. This has laid the foundation for further growth. To support these platform opportunities, the organisation is now taking the next step in becoming a global marketplace for travel and experiences.
In the future, TUI will expand its successful product range and offer more third-party products. The core business of classic package holidays will be complemented by dynamic packages and individual components. At the same time, the tour operator will increase its personalised offerings, expand its ancillary services, and maintain the high level of service that TUI customers have been accustomed to and appreciated for many years. Sales via shops and direct online channels will be at the center of the group's growth ambitions.
To enable this transformation, Markets + Airline is now adapting its organisational structure and processes according to the strategic priorities. The new structure has three main areas and is being implemented with the aim of enabling strong synergies. The first area is Marketplace – a fully integrated function with a new operational model for the tour operator, which will support the core business. This will enable global scalability at high speed and make operations more efficient and profitable. The second area is a separate unit for Expansion Businesses, which will focus on new product categories and markets. Finally, TUI is establishing an expanded commercial function within the airline.
– We have reported double-digit growth for the eighth consecutive quarter in underlying EBIT in August. This demonstrates the strength of our business strategy. We will accelerate our growth plans and are therefore now taking the next step in our transformation. Markets + Airline plays a key role in this. In addition to being a successful tour operator with a strong brand, we will offer a growing portfolio of products, services, and destinations. The goal is to sell more products to more customers globally, year-round. The transformation of Markets + Airline will help us grow our TUI smile globally, says Sebastian Ebel, CEO of TUI Group..
New organisational model and new leadership team for Markets + Airline
The transformation to a Marketplace means that the main functions – Commercial and Marketing – will be organised in an integrated way across the regions. The commercial function includes all product and purchasing activities, as well as the optimisation of trading tools. This function will be led by Stefan Baumert, the new Chief Commercial Officer, who has a long and successful career within TUI behind him. Marketing will also be organised at a central level, and the person who will lead this function will be appointed shortly.
In the new Marketplace function, regions will ensure a focus on local customer needs, with responsibility for managing flight capacity, trade, and distribution, as well as local marketing. A CEO has been appointed for each region. Arjan Kers will be responsible for the BeNe region (Belgium and the Netherlands). The GAS region (Germany, Austria, Switzerland) will be led by Benjamin Jacobi. Jessica Enbacka will head up the Nordics. Neil Swanson will be responsible for the UK and Ireland operations, replacing Andrew Flintham who will be leaving the organisation after a long career within the group. The regions will retain their own profit and loss reporting and will report directly to David Schelp, CEO Markets + Airline.
Expansion businesses for rapid incubation and growth
As the tourism group wants to grow beyond its current portfolio, an ”Expansion Businesses” unit will be established. Mircea Tudose will be responsible as CEO of Expansion Businesses and report directly to David Schelp. The unit will function as an incubator and prioritise the rollout of new product platforms, attracting new customer segments, and entering new markets.
Strengthening the business's relevance: TUI Airline with an enhanced commercial strategy
The aviation industry continues to evolve, with growing capacity, a focus on cost-efficiency, and a shift towards leisure markets. To continue its growth journey, TUI Airline, which will continue to be led by Marco Ciomperlik, CEO of TUI Airline, will expand its commercial approach. The focus will be on leveraging commercial opportunities while adapting operations to regional needs and creating value for the TUI Group.
All changes come into effect on 1 October 2024.
– As the market landscape and customer demand change, we will now accelerate our transformation to ensure we achieve our ambitious growth targets. The new organisation will establish clear responsibilities and enable scalability, greater agility, and maximise our opportunities in the global tourism market. Customers will be able to book more flexibly and choose from an even wider product offering. The integrated business model with Holiday Experiences – which includes Hotels & Resorts, Cruises and Activities – as well as Markets + Airline will unlock further significant value for our shareholders. The transformation will support our growth ambitions and together with my new management team, I look forward to accelerating the transformation and successfully implementing the new structure, says David Schelp, CEO of Markets + Airline.
According to the press release.
