TUI Group

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TUI AG
Trade name
TUI Group
FormerlyPreussag AG (1923–2002)
TypeAktiengesellschaft
Traded as
FWB: TUI1
LSE: TUI
FTSE 250 Component
ISINDE000TUAG000
IndustryHospitality, tourism
Founded1923; 98 years ago (1923)
HeadquartersHannover and Berlin, Germany
Area served
North America
Europe
Key people
  • Dieter Zetsche (chair­person) Edit this on Wikidata
  • Friedrich Joussen (CEO) Edit this on Wikidata
ProductsCharter and scheduled passenger airlines, package holidays, cruise lines, hotels and resorts
ServicesTravel agencies
RevenueDecrease €7.94 billion (2020)[1]
Decrease - €3.03 billion (2020)[1]
Net income
Decrease - €3.13 billion (2020)[1]
Number of employees
70,000 (2020)[2]
Websitewww.tuigroup.com

TUI AG (short for "Touristik Union International"), also known as TUI Group, is a German multinational travel and tourism company headquartered in Hanover, Germany.[3] It is the largest leisure, travel and tourism company in the world,[4] and it owns travel agencies, hotels, airlines, cruise ships and retail shops. The group owns five European airlines – the largest holiday fleet in Europe – and several tour operators based in Europe.

TUI AG is jointly listed on the Frankfurt Stock Exchange and the London Stock Exchange as a constituent of the FTSE 250 Index.

History[]

Thomson travel agents in Wetherby, United Kingdom
The same branch now in TUI branding (2017)

The origins of the company lie in the industrial and transportation company Preussag AG, which was originally formed as a German mining company. It was incorporated on 9 October 1923, as Preußische Bergwerks- und Hütten-Aktiengesellschaft (Prussian Mine and Foundry Company). In 1927 it was merged with the Ruhr coal company, Hibernia AG, and electricity utility to become the Vereinigte Elektrizitäts und Bergwerks AG (VEBA AG) (United Electrical and Mining Company).[5]

After the sale of Salzgitter AG and purchase of Hapag-Lloyd AG (the navigation and logistics company) in 1997, Preussag AG became a global enterprise in the service and leisure industry. At that time, Hapag-Lloyd held a 30% interest in the tourism conglomerate TUI (founded 1968), increased to 100% by 1999.[6] In addition the company acquired 25% of Thomas Cook shares in 1997, which it doubled the following year. On 2 February 1999, the Carlson Leisure Group merged with Thomas Cook into a holding company owned by the German bank Westdeutsche Landesbank, Carlson Inc and Preussag.[7] However, in mid-2000 Preussag acquired Thomas Cook's rival Thomson Travel and was forced to sell its majority 50.1% stake in Thomas Cook by regulatory authorities.[8] In 2002, Preussag renamed itself TUI AG.[9]

TUI announced a merger of its travel division with the British tour operator First Choice in March 2007,[10] which was approved by the European Commission on 4 June 2007, on the condition that the merged company sell Budget Travel in Ireland.[11] TUI held a 55% stake in the new company, TUI Travel PLC, which began operations in September 2007.[12]

In April 2008, Alexey Mordashov, who purchased his first shares in TUI Travel in autumn 2007, purchased additional TUI Travel shares under S-Group in order to expand TUI Travel into Eastern Europe and Russia.[13][14][15]

Its logistics activities, concentrated in the shipping sector, were kept separate and bundled within Hapag-Lloyd AG. A majority stake in Hapag-Lloyd was sold to the Albert Ballin consortium of investors in March 2009[16] and a further stake was sold to Ballin in February 2012, as TUI worked to exit from the shipping business and to optimize its tourism business with expansion in Russia, China and India under Michael Frenzel.[15][17] Prior to August 2010, John Fredriksen held the largest Norwegian privately held stake in TUI Travel and had a significant influence upon TUI Travel's direction and strategy.[18] As Alexey Mordashov through his S-Group Travel Holding increased his stake in TUI Travel to a stake larger than Fredriksen's stake, the shipping business had to be sold.[18]

In June 2014 the company announced it would fully merge with TUI Travel to create a united group with a value of $US9.7 billion.[19] The merger was completed on 17 December 2014 and the combined business began trading on the Frankfurt and London stock exchanges.[20] Prior to this merger, Alexey Mordashov, the largest private shareholder in TUI Travel, held a blocking stake in TUI Travel through his S-Group.[21] After the merger, Alexey Mordashov's stake was reduced to less than a blocking stake of 25%.[21]

On 12 December 2016, Alexey Mordashov increased his stake in TUI Group from 18% to more than 20%.[21][22] In October 2018, his 24.9% stake is the largest privately held stake in TUI Group.[23] When Mordashov's stake increases to 25%, he will have a blocking stake in TUI Group at its annual meeting.[21][22] In June 2019 Mordashov transferred 65% of his stake to the KN-Holding, owned by his sons Kirill Mordashov and Nikita Mordashov. TUI says in a statement that they ”welcome the second generation of the family amongst its shareholders”.[24]

In August 2020, the company reported a net loss of €2.3 billion (from October 2019 to June 2020) as a result of the COVID-19 pandemic. Out of the sum, €1.5 billion loss related to the period from April to June 2020, while the revenue for the same period was €75 million, 98% less than the same period in 2019. TUI's chief executive officer, Fritz Joussen announced that the firm was considering selling the Marella cruise line.[25]

Corporate affairs[]

See below the financial information of TUI AG since 2002:

TUI Group Financial Information
Year Revenue Net Profit Chief Executive
2015/16[26] €17.18 billion €1.15 billion Friedrich Joussen
2016/17[26] Increase€18.53 billion Decrease€910.9 million Friedrich Joussen
2017/18[26] Increase€19.52 billion Decrease€780.2 million Friedrich Joussen
2018/19[26] Decrease€18.92 billion Decrease€531.9 million Friedrich Joussen
2019/20[26] Decrease€7.94 billion Decrease-(€3.13) billion Friedrich Joussen

Operations[]

The TUI 'smile' logo
TUI head office in Hanover

The TUI Group in 2014 operated:[27][28]

  • 1,600 travel agencies
  • 150 aircraft
  • 16 cruise liners
  • 380 hotels and resorts
  • Over 5M card payments annually

Tour operators[]

Tour Operator Country
First Choice Holidays Limited  United Kingdom
Sunwing Travel Group  Canada
TUI Belgium SA  Belgium
TUI Danmark A/S  Denmark
TUI Finland Oy Ab  Finland
TUI Nederland N.V.  Netherlands
TUI Norge A/S  Norway
TUI Polska sp. z o.o  Poland
TUI Sverige AB  Sweden
TUI UK Limited  United Kingdom
Wolters Reisen GmbH  Germany

Aviation[]

TUI Group owns five European airlines, inherited from TUI Travel, making it the largest tourism group in Europe. The group airlines operate both scheduled and charter flights to more than 150 destinations worldwide departing from more than 60 airports in nine European countries. With a Fleet of 137 In May 2015, the TUI Group announced it would rebrand its existing five airline brands under one airline banner in the course of the coming years, to be titled ‘TUI’. Arkefly (now TUI fly Netherlands), Jetairfly (now TUI fly Belgium), Thomson Airways (now TUI Airways), TUIfly (now TUI fly Deutschland) and TUIfly Nordic (now TUI fly Nordic) will maintain the separate air operator's certificates (AOCs), but will operate under "one central organisation" with "one engineering & maintenance function".[29]

Until March 2019, TUI also owned Corsair International. It sold a majority stake to Intro Aviation of Germany. It does, however, retain a 27% minority stake in the airline.[30]

Airlines[]

Airline Country Image Description
TUI Airways United Kingdom United Kingdom TUI 757.jpg TUI Airways is the largest of the TUI airlines. It has 64 aircraft and flies from 26 British airports to 109 destinations worldwide. It was formed by the merger of Thomsonfly (formerly Britannia Airways) and First Choice Airways (formerly Air 2000). The airline was the last TUI airline to be rebranded.
TUI fly Belgium Belgium Belgium Jetairfly - OO-JEB "Navigator".png TUI fly Belgium has operated since March 2004 to more than 105 destinations around Europe, the Red Sea, Caribbean, Canary Islands, US and Africa. Since 2012 it has operated scheduled flights as well as charter services. It was formerly known as Jetairfly, rebranded to TUI fly Belgium in late 2016.
TUI fly Deutschland Germany Germany TUIfly 738 D-ATUM 170414.JPG TUI fly Deutschland has operated since 1972, under the name Hapag-Lloyd Flug, and rebranded to TUIfly in 2007. It has yet again rebranded as TUI fly Deutschland. It has 40 aircraft, flying to 39 destinations.
TUI fly Netherlands Netherlands Netherlands PH-TFL (24746044299).jpg Since 2005, TUI fly Netherlands has operated charter flights from Amsterdam Schiphol Airport to destinations in Southern Europe, North Africa, the Caribbean, and Latin America. It was formerly known as Arkefly, rebranded to Arke in 2013, and rebranded again to its current name in 2015.
TUI fly Nordic Denmark Denmark
Finland Finland
Norway Norway
Sweden Sweden 		Boeing 737-8K5(w) ‘SE-RFY’ TUIfly Nordic (24754022171).jpg TUI fly Nordic flies from Sweden, Denmark, Finland, and Norway. They fly holidaymakers travelling with the following tour operators; TUI Sverige (Sweden), TUI Finland (Finland), TUI Norge (Norway), and TUI Danmark (Denmark). There was a slight name change, from TUIfly Nordic to TUI fly Nordic.

TUI Group fleet[]

The TUI Group fleet includes the following aircraft, as of June 2021:[31]

TUI Group fleet
Aircraft In Service Orders Passengers Notes
P E Total
Boeing 737-700 4 — — 148 148 To be phased out.[32]
Boeing 737-800 74 — — 189 189
Boeing 737 MAX 8 22 32[33] – 189 189
Boeing 737 MAX 10 — 18[34] TBA
Boeing 757-200 4 — — 221 221 To be phased out.[32]
223 223
Boeing 767-300ER 6 — 31 248 279
– 328 328
Boeing 787-8 13 — 47 244 291
47 253 300
18 291 309
Boeing 787-9 6 63 282 345
Embraer 190 4 — — 112 112
Total 140 50

Hotels[]

TUI's hotel brands include:

  • Blue: Premium resorts with a focus on local culture
  • Family Life: Resorts with a focus on children's activities and entertainment
  • Magic Life: All Inclusive resorts offering 24-hour facilities
  • Sensatori: luxury (five-star), all-inclusive resorts
  • Sensimar: hotels with up to 250 rooms, aimed at adult and couples travellers and not families[35]

Cruise lines[]

  • Hapag-Lloyd
  • Marella Cruises (United Kingdom)
  • TUI Cruises (Deutschland)
  • [36]

Sponsorship[]

TUI sponsored Bundesliga club Hannover 96. The airline branch TUIfly's main hub is at Hannover-Langenhagen Airport and it had sponsored the football team since the 2002–2003 season. On 31 March 2011, TUI announced Hannover 96 would be playing "with a smile on their chest" for another 3 years, as it extended the sponsorship contract. The current sponsor contract ran out, but it made TUI the longest-running association with any of the 18 Bundesliga teams, with 12 years as the sponsor. As part of the sponsorship, TUI was the shirt sponsor, as well as having had advertisements on the perimeter fencing of the AWD-Arena, Hannover's home stadium. There was also advertising in the stadium, on the billboards by the pitch and banners around the stadium, and TUI will also remain the sponsor of the Hannover 96 Football School.[37]

Sustainability[]

In 2015 launched its sustainability strategy called "Better Holidays, Better World", built around four core pillars. These are areas where TUI has been aiming aim to make a positive impact: their our own operations, influencing the value chain and customers, and across the wider tourism industry. A goal was set to deliver 10 million ‘greener and fairer’ holidays per year by 2020.[38] In April 2021 TUI published that the goal was achieved. Over the course of six years (2015 to 2020), 43 million “greener and fairer” holidays had been delivered, with 10.3 million customers staying in hotels with sustainability certifications in 2019 alone.[39]

Controversies[]

A 2018 study in the UK found that Tui had the largest gender pay gap reported to date by a major UK company, with its male employees paid more than twice what female employees are paid.[40]

In August 2018, some air passengers questioned the distribution of gendered stickers to children on a flight: "future pilot" for boys, "future cabin crew" for girls.[41]

TUI has become the main airline carrying out charter deportation flights for the UK Home Office.[42] It is estimated that in November and December 2020 TUI carried out the deportation of more than 150 people in 13 flights to 23 destinations for the Home Office.[43]

See also[]

  • Industry5.svg Companies portal
  • Flag of Germany.svg Germany portal

References[]

  1. ^ Jump up to: a b c "Annual Report 2020" (PDF). TUI. Retrieved 6 January 2021.
  2. ^ "Tui warns of 8,000 job losses as travel firm faces 'greatest crisis'". The Guardian. 13 May 2020. Retrieved 3 March 2021.
  3. ^ "Contact TUI Group." TUI AG. Retrieved on 29 May 2009.
  4. ^ "TUI forges World's biggest tourism operator." TUI AG. Retrieved on 29 October 2014.
  5. ^ "History". Preussen Elektra. Retrieved 14 April 2017.
  6. ^ "TUI Group GmbH". company-histories.com. Retrieved 23 March 2018.
  7. ^ "WESTDEUTSCHE LANDESBANK / CARLSON / THOMAS COOK (Merger) [1999] ECComm 26 (8 March 1999)". www.worldlii.org. Retrieved 2015-12-02.
  8. ^ "German firm buys Thomas Cook". BBC. 7 December 2000. Retrieved 14 April 2017.
  9. ^ "Goodbye Thomson, hello TUI – how Germany beat Britain in the battle of the sunlounge". The Telegraph. 18 October 2017. Retrieved 11 March 2019.
  10. ^ "First Choice to tie up with TUI". BBC News. 19 March 2007. Retrieved 24 June 2013.
  11. ^ "First Choice-TUI merger cleared". BBC News. 4 June 2007. Retrieved 24 June 2013.
  12. ^ "Thomson and First Choice to merge". The Guardian. 19 March 2007.
  13. ^ "TUI gründet mit Mordaschow Reisetochter in Russland Touristikkonzern und Oligarch vertiefen Partnerschaft" [TUI establishes a subsidiary in Russia with Mordashov. Touristkonzern and Oligarch deepen partnership.]. Financial Times Deutschland (in German). 11 April 2008. Retrieved 22 October 2018.
  14. ^ Heitmann, Jens (30 August 2010). "Alexej Mordaschow baut Einfluss bei TUI aus" [Alexei Mordashov is extending his influence at TUI]. Göttinger Tageblatt (in German). Retrieved 22 October 2018.
  15. ^ Jump up to: a b "Russischer Investor baut Einfluss bei TUI aus" [Russian investor is extending his influence at TUI]. Der Spiegel (in German). 31 January 2011. Retrieved 22 October 2018.
  16. ^ Kuehnen, Eva (23 March 2009). "TUI AG completes sale of Hapag-Lloyd unit". Reuters. Retrieved 8 August 2010.
  17. ^ "TUI AG set to agree Hapag-Lloyd deal this week". 12 February 2012.[permanent dead link]
  18. ^ Jump up to: a b Wnuck, Corinna (30 August 2010). "Tui-Großaktionär stockt Anteil auf" [Tui major shareholder increases stake]. Finance (in German). Retrieved 22 October 2018.
  19. ^ "Tui Travel agrees to merger with German majority stakeholder". International Travel News. Archived from the original on 2014-10-06. Retrieved 17 December 2014.
  20. ^ Young, Sarah (17 December 2014). "TUI Travel, TUI AG merger completes". Reuters. Retrieved 17 December 2014.
  21. ^ Jump up to: a b c d "Roundup: Tui-Großaktionär Mordaschow nähert sich der Sperrminorität" [Roundup: Tui major shareholder Mordashov approaches the blocking minority]. Bild (in German). 1 September 2017. Retrieved 22 October 2018.
  22. ^ Jump up to: a b "Алексей Мордашов приблизил свою долю в TUI к блокирующему пакету" [Alexey Mordashov brought his stake in TUI closer to the blocking stake]. RBC (in Russian). 10 January 2017. Retrieved 22 October 2018.
  23. ^ "Shareholder structure". TUI Group. Retrieved 22 October 2018.
  24. ^ "Change in the shareholder structure of TUI AG". www.tuigroup.com. Retrieved 2019-12-05.
  25. ^ Hancock, Alice (13 August 2020). "Tour operator Tui considers disposals after racking up €2.3bn loss". Financial Times. Retrieved 13 August 2020.
  26. ^ Jump up to: a b c d e "All TUI Annual Reports 2016-2020". www.tuigroup.com.
  27. ^ "The World's number one integrated tourism business – New TUI Group begins trading on the stock exchange". 17 December 2014. Archived from the original on 17 December 2014. Retrieved 17 December 2014.
  28. ^ "About TUI Group". www.tuigroup.com.
  29. ^ "TUI Group announces rebranding of airline operations". 14 May 2015.
  30. ^ "INTRO Aviation outlines Corsair refleeting plans". ch-aviation.
  31. ^ "TUI Group Fleet". Planespotters.net. Retrieved 17 June 2021.
  32. ^ Jump up to: a b "TUI Group to simplify fleet, mulls more B737 MAX 10s". Ch-aviation.com. 25 July 2018. Retrieved 25 July 2018.
  33. ^ "TUI fly krijgt naast B737 MAX8 ook vier MAX10's in de vloot (Dutch)". flightlevel.be. Retrieved 21 November 2017.
  34. ^ "TUI fly krijgt naast B737 MAX8 ook vier MAX10's in de vloot". flightlevel.be. Retrieved 21 November 2017.
  35. ^ "New hotel branded called Sensimar". FVW.
  36. ^ "TUI River Cruises officially launches on the Rhine". 2021-08-13. Retrieved 2021-08-15.
  37. ^ "TUI extends contract as main sponsor of Hannover 96". TUIfly. 31 March 2011. Retrieved 31 March 2011.
  38. ^ "'Better Holidays, Better World': TUI Group launches new sustainability strategy". www.tuigroup.com. 28 September 2015.
  39. ^ "Less CO2 emissions, less waste, more green energy: TUI delivered 43 million "greener and fairer" holidays since 2015". www.tuigroup.com. 28 April 2021.
  40. ^ Butler, Sarah; Barr, Caelainn (16 February 2018). "Tui's male employees paid more than double female staff – report". Retrieved 22 January 2019 – via www.theguardian.com.
  41. ^ Khomami, Nadia (22 August 2018). "'Sexist' Tui Airways crew gave different badges to girls and boys". Retrieved 22 January 2019 – via www.theguardian.com.
  42. ^ "The two sides of TUI: crisis-hit holiday giant turned deportation specialist – Corporate Watch". corporatewatch.org.
  43. ^ "The Home Office deportation drive against Channel-crossing migrants: a balance sheet – Corporate Watch". corporatewatch.org.

External links[]

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