NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


too much. They might be better travelling around Europe.” Sutherland is equally


sharp-tongued about the travel industry, suggesting “price has become the only salient thing” and the sector’s “yield management could be cleverer – it’s very dumb”. He argues: “Don’t always


advertise on price. If someone is looking for four tickets, why not offer four for the price of three? A business traveller will pay the full price. Don’t discount to people prepared to pay the full price but to those more price-sensitive.” Sutherland warns against a


wholesale shift to personalised pricing, suggesting: “It brings the possibility of a breakdown in trust if you quote higher prices [to some people]. I’m in favour of price discrimination but not to the extent that it makes people feel cheated.” At the same time, Sutherland


stresses the continuing value of intermediaries. He says: “There is a narrative in business and government that the use of technology only brings gains. But a lot of predictions about where the market will go are exaggerated. The prophets of the digital generation tend to be in the top 10% of the population for wealth and can afford to make a mistake. Most people will continue to use intermediaries.” He insists: “Travel agents,


estate agents and wedding planners play an important role in the purchase of infrequently bought things.” Sutherland will speak on


the opening day of the Travel Convention on ‘Who Can We Trust?’, in line with the Convention theme of ‘Truth,


Trust and the Future of Experts’. ■ The Travel Convention 2018, October 8-10, Barceló Convention Centre, Seville: thetravelconvention.com


Tui Group’s Q3 profits held back by weak sterling


Ian Taylor ian.taylor@travelweekly.co.uk


Tui reported a “good third quarter” and “very good nine months” in results to the end of June last week. However, the company suffered a sharp fall in UK profits due to the decline in sterling.


The Tui Group revealed a 6.3%


increase in nine-month turnover to €11.8 billion and an underlying operating profit of €65 million, up by almost €58 million on 2017. Bookings across Tui’s markets


were up 4.4% year on year in the three months to June. Group underlying operating


profit for the three months rose 2.4% to €227 million. Yet there was a 54% fall


to €42 million in underlying profit for April to June in Tui’s source markets. This was chiefly attributable to the UK – with an


Amadeus buys hotel technology firm TravelClick


Amadeus has agreed to acquire New York-based hotel- management technology company TravelClick for $1.52 billion from private equity firm Thoma Bravo. The GDS and travel technology


firm said the deal would boost its presence in the hospitality sector, particularly among independent and mid-sized chain hotels. TravelClick offers reservations, guest management and data technology to 50,000 hotels


62 travelweekly.co.uk 16 August 2018 €227m


Tui Group’s underlying operating profit for the April-June quarter


80% decline to €16 million in Tui’s Northern Region, which comprises the UK, Ireland, the Nordics, Russia and Canada. Chief executive Fritz Joussen said:


“Profitability is under pressure, but only in the UK – related to the weakness of the pound.” He noted 60% of Tui profits now


come from its cruise and hotels and resorts divisions, while the holidays business “earns its profits in the fourth quarter”. Joussen said: “We delivered a


profitable operating result after nine months for the second year in a row. For the full year, we expect


including the Hilton, Marriott, Loews, Accor, Radisson, Mandarin Oriental and Crown Hotels brands. In a statement, Amadeus said the deal “will create a hospitality leader” with “distribution reach across all channels, digital and traditional”. Francisco Perez-Lozao, Amadeus senior vice-president for strategic growth businesses, said: “This is a huge step forward for Amadeus in hospitality. We have already made strong progress with the large chains. TravelClick gives us access to the mid-chain and independent hotel segment. We are looking for significant growth.” The deal is expected to go


JOUSSEN: ‘Expect double-digit earnings growth for fourth year’


to deliver double-digit earnings growth for the fourth consecutive year. “We have considerably


reduced our seasonality and our susceptibility to external challenges through focusing on hotels and cruises. This shows our strategy is working. Turnover is up – a little due to higher prices but mostly to more customers. We are winning market share.” Tui also blamed “a negative


Easter effect of €19 million, and a one-off effect of €13 million as a result of airline disruption driven by air traffic control strikes”.


PEREZ-LOZAO: ‘This is a huge step for Amadeus in hospitality’


through by the fourth quarter of this year.


Thoma Bravo bought TravelClick for $930 million in 2014.


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