TUI is to rely more heavily on online and self-booking technology to cut its costs in the continued "challenging background".
In a trading update today, the travel giant said it is looking to make £60 million worth of cost savings and has identified further cost savings in the UK business and "central functions".
Chief executive Peter Long said it plans to expand online bookings to "drive greater control of distribution and reduce costs in our mainstream business".
He said TUI would also invest in "increased levels of automation which will improve customer self-service options and simplify our back office processes".
Long said overall bookings are up between 8%-16% in key markets for summer 2011, driven by strong bookings for differentiated products (products exclusive to TUI) which are up 26% in the UK, 46% in the Nordics and 21% in Germany.
"We are accelerating the roll out of differentiated products across all source markets to drive the shift in mix away from commodity products, which will continue to experience margin pressure," he said.
* TUI has appointed Tanya Murray as distribution director for its education division, based in Brighton.
She joined the company two and a half years ago, having previously worked for Centrica and Santander.
She starts on February 1, reporting to TUI Education COO Paul Hawkes.
By Bev Fearis
