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should have exited. [But] there was a state guarantee and it led to the situation we are in now.” Joussen suggested:
“Overcapacities are not good for anyone. Is a €19 fare to Majorca a good thing? No, it’s not. We will see different prices if the number of aircraſt is reduced. “No doubt consolidation
will happen. Te issue is how easy is it for markets to adapt to the right size? Everyone [among the airlines] is playing hard ball. Te airlines want some solution – people are not stupid. But it’s difficult to speculate how it will happen.” He described Tui as “active observers in the market”. Joussen noted the fall in the
pound amid fears of a no-deal Brexit was “difficult for British travellers”. He said: “It means price increases of a litle more than 4% – not litle but not disastrous.” On Brexit, he said: “Who
knows what will happen? Te currency movements are the main effect. For UK travellers, Brexit is not atractive, but it is not in our hands. We are preparing ourselves. If the market is great – beautiful. If the market is bad, we are more resilient than in the past.” Tui’s full-year profit forecast
remained unchanged from March when the group revised down its previous forecast “due to the grounding of the 737 Max”. Joussen put the cost of the grounding at €144 million in the quarter to June and €300 million to the end of September. However, he dismissed
concerns about the further impact of the grounding, saying: “For winter it’s not so important. Tere are always enough options. It’s not an issue.”
Operator insists jobs won’t be hit by digital focus
Tui plans to move to a single digital platform across its markets in 18 months, having almost completed integration of its UK and Nordics’ business platforms. Chief executive Fritz Joussen
outlined the group’s digital transformation last week but dismissed a suggestion the
digital focus would hit jobs. He said: “Te transformation
of our group will continue to develop Tui into a global platform organisation. We’ll put emphasis on a common platform in all markets. We don’t have a separate IT platform for the Nordics anymore – it is with the UK – and in the next 18 months we won’t have any separate market platforms. “Te platforms will be just
one – one system for soſtware, for purchasing, for apps. If we have a new feature it will be available to all markets.”
Joussen explained: “Like with
a Formula 1 car – a different driver might drive the car differently, but it is one car. We build it once but drive it in different ways. “Te system and the soſtware
will be one, but we’ll have different channels – retail, offline, online and PNLs [profit and loss accounts]. But the soſtware will be one.” However, Joussen said: “I
wouldn’t see there will be job losses. Tere may be changes to jobs – job profiles could be changing. [But] we are a people business and we stay a people business.
Tui targets 100 Tui Blue hotels globally by 2020
Ian Taylor
Travel giant Tui aims to speed up its move into markets beyond Europe and develop its Tui Blue hotels into “the biggest leisure hotel brand in the world”. Te group unveiled plans to target
consumers in China and Brazil two years ago, aiming to atract up to one million customers in markets in which it had no presence at the time. Chief executive Fritz Joussen confirmed Tui would ramp up its efforts in these markets last week, noting the group
added Malaysia in July. He said: “We launched a Malaysia
Holiday experiences portfolio [branded MHholidays] with Malaysia Airlines. “We want one million customers
in markets in which we were not active in 2017. We have 250,000 now, so we think to be more aggressive and grow faster. We are working on a good pipeline of partnerships with airlines also in China.” Te Tui Blue hotel brand will
be expanded to complement this growth. Joussen explained: “We
We need to be able
to sell the Caribbean in the US and Brazil. In Asia, we need to be able to sell in China
want to grow our hotels business [and] decided to use a new master brand – Tui Blue. It will be a direct- distribution brand for selling outside our core source markets. We need to be able to sell the Caribbean in the US and Brazil. In Asia, we need to be able to sell in China.” Tui Blue will grow by buying new
Tui Blue Marmaris, Turkey
62 22 AUGUST 2019
properties, rebranding existing hotels and operating franchises. Joussen said: “Sensimar [hotels] will be converted, also Family Life [hotels], [and] third parties can be under that umbrella. We need a big brand. We will expand our footprint in the Mediterranean, Caribbean, Indian Ocean, southeast Asia. We have 10 [Tui Blue hotels now] and will have 100 by 2022.”
travelweekly.co.uk
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