TUI Group

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COMPANY PROFILE

TUI Group

REFERENCE CODE: 64FE4D31-DE29-4585-8F8A-017CE47003FB

PUBLICATION DATE: 27 Mar 2015

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TABLE OF CONTENTS

Company Overview        3

Key Facts        3

Business Description        4

History        6

Key Employees        8

Key Employee Biographies        10

Major Products and Services        21

Revenue Analysis        22

SWOT Analysis        24

Top Competitors        29

Company View        30

Locations and Subsidiaries        32

COMPANY OVERVIEW

TUI Group (or 'the group') is one of the leading providers of services associated with holiday and travel. The group's core activities are in the tourism business, focusing mainly on European markets. The group is headquartered in Hanover, Germany, and employed 77,309 people as of September 30, 2014.

The group recorded revenues of E18,714.7 million (approximately $25,399.6 million) during the financial year ended September 2014 (FY2014), an increase of 1.3% over FY2013. The operating profit of the group was E505.6 million (approximately $686.2 million) during FY2014, an increase of 62.4% over FY2013. The net profit was E104.7 million (approximately $142.1 million) in FY2014, as compared to a net loss of E11.1 million (approximately $15.1 million) in FY2013.

KEY FACTS

BUSINESS DESCRIPTION

TUI Group (or 'the group') is Europe's leading travel group. The group owns a network of travel agencies and tour operators. It also operates several airlines, including Thomson Airways and TUIfly, among others. The group operates in Europe, North America, South America and other regions of the world.

The group operates through two segments: tourism, and ‘all other’.

The group’s tourism segment manages its operations through three sectors: TUI travel, TUI hotels and resorts, and the cruises.

TUI travel comprises all distribution, tour operators, airlines and incoming activities of the TUI Group. As of FY2014, it was active in 180 countries and served around 30 million customers in 31 source markets. It has a portfolio ranging from package tours to a range of specialist offerings. TUI travel sector is organized into three businesses: mainstream; specialist and activity; and accommodation and destinations.

The mainstream comprises tour operators, and operates a fleet of 145 aircraft and around 1,800 travel agencies.

The specialist and activity business provides specialist and experiential travel services. It pools over 100 specialist and adventure tour operators in Europe, North America and Australia. The specialist and activity business operates through five divisions: adventure, education, North American specialists, events, and specialist holiday group.

The accommodation and destinations business is comprised of activities in Europe, North America and Asia. It is structured into three divisions, namely business customer division (B2B hotel portals), final customer division (B2C hotel portals), and inbound services division. B2B hotel portals sells globally sourced hotel and apartment accommodation online to wholesale customers such as travel agencies and tour operators through various Internet portals. In the B2C hotel portals, accommodation is supplied online to individual customers through hotel portals, ‘Laterooms’ and ‘Asiarooms’. The inbound services division manages regional incoming agencies providing incoming services for tour operators, such as transfers and liaison with holiday-makers. This division also provides services for the cruise industry.

The TUI hotels and resorts sector manages TUI's hotel companies. This includes hotel companies in which majority interests are held, joint ventures with local partners, companies in which a financial stake is held and hotels operated under management contracts. As of FY2014, the TUI hotels and resorts portfolio consisted of 238 hotels and 157,992 beds in various countries around the world, and includes hotel brands such as Riu, Robinson, Iberotel, Grupotel, Grecotel, and other hotel companies.

The cruises sector includes Hapag-Lloyd Kreuzfahrten and TUI cruises. Hapag-Lloyd Kreuzfahrten is a provider of discovery and luxury cruises in the German-speaking luxury and expedition cruise market. TUI Cruises is a joint venture between TUI and Royal Caribbean Cruises. It offers cruises to the German market.

Under its ‘all other’ segment, the group operates real estate companies, all non-allocable business activities (in particular, holding companies) and the result from the measurement of the stake in container shipping.

HISTORY

TUI AG (TUI or 'the company') began evolving in the mid 1990s after Preussag's (now TUI) management decided to focus on the services market, specifically tourism.

The Preussag group acquired Hapag-Lloyd, a tourism company, in 1997. In the following year, Lower Saxony and NordLB purchased Preussag's steel activities. During the same time, Hapag-Lloyd acquired a majority shareholding in TUI Touristik Union International. Preussag also entered the UK market by acquiring a stake in Thomas Cook. Subsequently, Preussag acquired a 75% share in Gulet Touropa Touristik (GTT), the Austrian market leader in the tour operator business, in 2000.

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