General presentation of the TUI Company:
Let us now continue with a more detailed presentation of the TUI Company. A thorough basic knowledge of this group and its activities is in fact essential if you are going to effectively understand the challenges it faces and its growth possibilities.
The TUI AG Group is a German company specialised in the tourism sector. More precisely, this company is currently the leader in this activity sector in Europe.
To better understand this group’s activities it is possible to divide them into different categories according to the turnover generated by each of them and the manner in which this is done:
- Tourism industry services of course represent the major part of TUI’s activities with 97.6% of this company’s turnover. This notably concerns the operation of tour operators and airlines particularly in the case of TUI Travel, the cruises, and hotel groups with TUI Hotels & Resorts representing a total of 354 hotels amounting to 262,244 beds and other related elements.
- The remainder of the group’s turnover, 2.4%, originates from other activities, primarily those related to real estate.
It can also be advantageous to know the geographical distribution of this company’s turnover which currently achieves 28.1% of its turnover in Germany, 31.8% in the United Kingdom, 1% in Spain, 35.8% from the rest of Europe, 1.6% from the American continent and the remaining 1.7% from other areas around the world.
Know the competition to the TUI Group:
Still with the objective of understanding the growth possibilities of the TUI Group and therefore those of its share price on the stock markets, you should know and understand its major activity sector and the major players therein. We therefore now offer you the opportunity to learn about the major competitors of TUI.
- FRAM: Also known under the name of ‘Fer, Route, Air, Mer’, this is a French travel company that was created in 1949 and has become a group with diverse activities notably exercising them under the brand names FRAM Voyages and FRAM Agences. Until recently it held third position in this sector in Europe behind TUI and Thomas Cook.
- Thomas Cook Group: This particular travel group is British and was created in the middle of the 19th century in England. It did however declare bankruptcy on 13th September 2019. At the time of its closure it boasted 2,600 travel agencies, 33 travel companies, 89 aircraft and was present in over 15 countries.
- Karavel: This French company that notably operates under the brand name Promovacances is specialised in tourism and is particularly well known for its online travel agency.
The strategic alliances implemented by the TUI Group:
Let us first study the strategic allies of TUI with a review of two recent examples of partnerships that this group has implemented with other companies with the objective of meeting certain requirements or promoting the growth of the company.
- MAIF: Firstly, in 2013, TUI implemented a strategic partnership with the insurance company MAIF. More precisely it was the subsidiary, TUI France, leader in the French tourism sector that became associated with the MAIF Group, a major player in the individual insurance sector, through a social partnership agreement relating to the recruitment of personnel concerning the voluntary departure plan of TUI France. This agreement concerned approximately a hundred employees enabling them to bypass the standard recruitment procedures and thereby demonstrating the social and responsible engagement commitments of the two companies.
- Booking: More recently, in June 2020 to be more exact, the TUI Group signed a new strategic partnership agreement with the online hotel reservations giant Booking.com. The objective here of Booking was to become present in all aspects of travel with an integrated range of solutions and activities including lodging, tickets and transport. This is why after the launch of its online digital activities in 2019, and in 10 French towns and cities, Booking.com signed this strategic partnership with the travel company TUI. Through this partnership the clients of Booking were in fact granted direct access to over 70,000 tours and attractions worldwide through the TUI subsidiary, TUI Musement, with a progressive launch on the online platform of Booking over the following few months.