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TTD: TUI reveals plans to become leading online travel company
TUI CEO Michael Frenzel has announced plans for the company to become a global internet-based travel business – further raising doubts about the future of its high street shops.
Speaking at the group’s AGM in Hanover, Frenzel said Thomson’s parent company was focusing on extending its market leadership in online sales.
“We are confident that, in spite of the changing markets, we can increase our market leadership as a globally active, internet-based travel company,” he told shareholders.
He said the group was on track to meet its earnings target of approximately €700 million for 2008.
He referred to numerous “cost saving and efficiency improvement measures” undertaken to achieve this target, which will result in cost savings of roughly €180 million and €30 million from improved efficiency by 2008.
“Following optimisation of the business processes on the British market in 2005, TUI is now focusing on business in Germany,” he said.
Frenzel also revealed further investments in the hotel sector. By 2008 the TUI Hotels and Resorts division plans to add more than 25,000 new hotel beds.
He admitted that economic fluctuations and political tension can impact travel but said: “Overall, we feel that we may well be able to continue to grow profitably over the next few years and to reach our goal of doubling earnings in the tourism division by 2008”.
At the AGM, Peter Rothwell was appointed to the TUI board. See separate story.
By Bev Fearis
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Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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