Tui plans dynamic package and accommodation-only push

An initial push in Germany will be followed by inroads into the UK market.

“We are not the company anymore that sells only traditional packages,” said new Tui Group chief executive Sebastian Ebel. “In Germany, 25% of sales were built dynamically. This will be a source of growth for the future when we roll that out to the UK.

“We are going to offer component sales and accommodation-only to get a fair share of the booking.com arena.”

Ebel said Tui would offer “a far broader range of products” to existing customers, but would also target new customers, especially in the activities sector.

Tui’s excursion and activities brand Musement will be a key factor in seeking more component sales. Ebel said Musement, purchased in 2018 as an Italian start-up company, was “growing very nicely”.

In the April-June quarter, Musement sold two million excursions, tours and activities – almost 10 times as many as in the same period last year. The number of transfers sold jumped more than five-fold to 7.2 million. 

Musement made €14 million pre-tax profit during the quarter, compared year-on-year to a €35 million loss.

The operator said: “Tui Musement is well on its way to becoming the leading global platform for excursions, tours and activities – in the course of this, exclusive offers such as the "Tui Collection", in particular, are being consistently expanded.”