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Unlock the strategic blueprint behind a major travel group's business model and revenue streams
Unlock the full strategic blueprint behind TUI’s business model with our in-depth Business Model Canvas that maps value propositions, customer segments, and revenue streams. This concise, actionable snapshot reveals how TUI captures market share and scales operations. Ideal for investors, consultants, and entrepreneurs seeking practical insights. Purchase the complete Word & Excel templates to apply these strategies directly.
Partnerships
Airline and code-share alliances
Partnerships with other airlines expand TUI’s route network, boost feeder traffic into TUI hubs and improve load factors, contributing to a group load factor of about 83% in 2024; code-share deals reduce operational risk on thin routes and provide schedule flexibility. Joint procurement with partners lowered fuel and maintenance costs by an estimated €60m in 2024, enhancing margin resilience.
Hotel owners and destination partners
Agreements with hotel owners and local operators secure room allotments and exclusive inventory, allowing TUI to guarantee capacity and margins even during peaks. Destination management companies provide ground services and excursions, underpinning on-the-ground quality control and bundled pricing. These ties stabilized availability through 2024 as international arrivals recovered to roughly pre‑pandemic levels (UNWTO). They also enable co‑marketing and shared revenue initiatives.
Cruise ship operators and ports
Partnerships with port authorities and shipyards secure berthing priority and maintenance slots, supporting TUI's itinerary reliability as the cruise industry recovered to near 2019 capacity (~30 million annual passengers by 2024). Joint scheduling agreements enhance turnaround efficiency and reduce costly delays. Collaboration with local shore excursion providers boosts guest spend and satisfaction. Joint sustainability projects—shore power and cleaner fuels—can cut berth emissions by up to 90% and yield port-fee discounts (up to ~30%).
Travel tech and GDS platforms
Integrations with GDS, OTAs and booking engines expand TUI distribution, tapping OTA channels that handled about 40% of global online accommodation bookings in 2024 and reaching millions more travelers.
Travel-tech vendors enable dynamic packaging, frictionless payments and personalization; TUI leverages APIs that cut offer time-to-market—industry estimates circa 2024 show platform-led launches 20–40% faster.
Data partnerships feed pricing engines and demand-forecast models, improving yield management and helping capture peak-season ADR uplifts documented across travel platforms in 2024.
- GDS/OTA integrations — wider distribution, ~40% OTA share (2024)
- Tech vendors — dynamic packaging, payment, personalization
- APIs — 20–40% faster time-to-market (2024)
- Data partnerships — improved pricing and demand forecasting
Regulators and insurance providers
Regulators and insurance providers secure TUI operations: 2024 EU package-travel rules and national bonding schemes ensure slot access, consumer protection and require solvency safeguards, reducing disruption costs for carriers and agents. Insurers underwrite trip protection and operational risks, with the global travel-insurance market estimated at about $31bn in 2024, covering cancellations, liability and insolvency exposure. Bonding schemes safeguard customer funds and boost consumer trust, lowering claim-related losses and reputational risk.
- Regulatory compliance: EU package-travel rules 2024
- Insurance cover: global market ~$31bn (2024)
- Bonding: protects customer funds, enables slot access
- Outcome: higher trust, lower disruption costs
Partners boost 83% load factor, ≈€60m savings
Airline, hotel, cruise and tech partners expanded network and inventory, helping TUI reach ~83% group load factor in 2024 and secure joint procurement savings of ~€60m. OTA/GDS reach (~40% OTA share 2024) and APIs (20–40% faster launches) boosted bookings and yield. Cruise/port and DMC ties supported a ~30m cruise pax market recovery (2024); insurers/bonding backed trust with travel-insurance ~$31bn (2024).
| Partnership | 2024 metric | Impact |
|---|---|---|
| Airlines | 83% load factor | Higher utilization |
| Procurement | ≈€60m saved | Margin resilience |
| OTAs/APIs | 40% OTA; 20–40% faster | More bookings |
| Cruise/DMC | ~30m pax | Itinerary reliability |
| Insurance | $31bn market | Risk transfer |
What is included in the product
Detailed Word Document
A comprehensive Business Model Canvas for TUI detailing customer segments, channels, value propositions, revenue streams and key resources, aligned with its integrated travel, tour-operator and hospitality operations. Designed for presentations and investment discussions, it includes SWOT-linked insights and competitive advantages across all nine BMC blocks to support strategic decisions and validation using real-world data.
Customizable Excel Spreadsheet
High-level, editable one-page TUI Business Model Canvas that condenses strategy into a clean snapshot, saving hours of formatting and structuring your own model. Perfect for team collaboration, quick comparisons, and creating fast deliverables or executive summaries.
Activities
Integrated product packaging
Combine flights, hotels, transfers and activities into curated packages that optimize yield across components, leveraging TUI Group’s latest reported FY 2023 revenue of €14.3bn to invest in quality standards and brand consistency; continuously refresh inventory to match seasonal demand (peak summer typically drives ~60% of bookings) and adjust pricing to protect margins.
Fleet and operations management
Fleet and operations management plans aircraft and cruise utilization to maximize load and occupancy, coordinating schedules across ~120 aircraft and a cruise fleet to improve yield and capture seasonal demand. Maintenance programs and safety compliance follow EASA and IMO standards with continuous crew scheduling and recurrent training for ~63,000 staff. Fuel, route and turnaround optimization reduces costs and improves on-time performance through data-driven dispatch and block-time management.
Digital sales and distribution
Operate websites, apps and APIs for booking and servicing, running performance marketing and CRM campaigns that drove TUI to report over 60% of bookings via digital channels in 2024; dynamic pricing and upsell engines increased ancillary revenue per booking, while omnichannel journeys and self‑service reduced contact centre volume and supported scalable cost-to-serve improvements.
Revenue management and pricing
Revenue management and pricing at TUI forecasts demand and sets prices by route, hotel and season using dynamic algorithms and historical booking curves. It controls allotments and overbooking thresholds to maximize load factors while limiting cancellations. It manages promotions and ancillaries and monitors competitors to adjust prices in real time.
- Forecast demand and set prices by route, hotel, season
- Control allotments and overbooking thresholds
- Manage promotions and ancillaries
- Monitor competitors and adjust in real time
Customer service and experience
Customer service and experience covers pre-trip, in-destination and post-trip support, managing disruptions and re-accommodation, and delivering on-property services via TUI reps and local partners; TUI reported serving about 9.5 million customers in 2023/24, stressing rapid disruption handling and recovery rates to protect revenue.
- Pre-trip, in-trip, post-trip support
- Disruption & re-accommodation
- On-property reps & partners
- Feedback collection & NPS-driven improvements
Package bundling boosts yield using €14.3bn revenue, 9.5M customers, >60% digital sales
Package bundling leverages TUI’s FY2023 revenue €14.3bn and seasonal mix (peak summer ~60% bookings) to optimise yield; fleet/cruise ops coordinate ~120 aircraft and ~63,000 staff under EASA/IMO standards; digital channels >60% bookings (2024) and ~9.5M customers (2023/24) drive dynamic pricing and ancillaries.
| Metric | Value |
|---|---|
| Revenue FY2023 | €14.3bn |
| Aircraft | ~120 |
| Staff | ~63,000 |
| Customers | ~9.5M |
| Digital bookings 2024 | >60% |
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Business Model Canvas
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Resources
Brand portfolio and trust
Strong brands drive consideration and repeat bookings: TUI’s portfolio and loyalty programs supported over 20 million customers in 2023, underpinning high repeat purchase rates. Reputation reduces customer acquisition costs, with brand strength contributing to sustained margins as TUI reported group revenue of about €11.8bn in FY 2023. Trust enables prepayments and cross-sell, boosting ancillary revenue per pax, while consistent service quality sustains NPS around the mid-30s.
Aircraft, cruise, and hotel assets
Owned and leased fleets, roughly 120 aircraft as of 2024, plus around 15 cruise ships and 400+ managed hotels underpin TUI’s capacity across markets. Asset control delivers schedule flexibility for seasonal peak demand and recovery planning. Standardized cabin and hotel configurations reduce maintenance complexity and turnaround time. Scale supports procurement leverage, lowering unit costs for fuel, parts and bulk hotel supplies.
Digital platforms and data
Booking engines, CRM and analytics power personalization across TUI’s digital channels, enabling tailored offers and upsells based on behavioral profiles. As of 2024, advanced data models support demand forecasting and dynamic pricing to optimize yields. Robust APIs link suppliers, OTAs and direct channels for real‑time inventory and distribution. Cybersecurity frameworks (PCI‑DSS, ISO 27001) protect customer and payment data end to end.
Supplier contracts and allotments
Long-term supplier agreements secure inventory and favorable rates for TUI, with allotments guaranteeing room capacity and enabling reliable package offerings; TUI serves about 20 million customers annually (pre-/post-pandemic ranges) so availability certainty is critical. Contracted options permit capacity up/down adjustments while commercial terms distribute revenue and cost risk across seasonal swings.
- Long-term agreements: favorable rates, secure inventory
- Allotments: guaranteed availability for peak seasons
- Options: flexible capacity adjustments
- Risk sharing: terms smooth seasonal revenue/cost volatility
People and operational expertise
Pilots, cabin crew, destination reps and support teams deliver TUI’s service across an integrated tourism network; in 2024 TUI operated about 130 aircraft and reported roughly 14 million customers, underpinning revenue generation. Revenue managers and engineers drive yield and fuel/maintenance efficiency, while local market knowledge improves targeting and package mix. Robust safety and regulatory compliance are core capabilities, enabling operations across 100+ destinations.
- Pilots & crew: frontline delivery
- Revenue managers & engineers: performance optimization
- Destination reps: local market targeting
- Safety & compliance: operational license to operate
Global travel leader with 20m customers and €11.8bn revenue
Strong brands and loyalty supported about 20 million customers in 2023, helping deliver group revenue of ~€11.8bn (FY2023) and NPS in the mid-30s. TUI operated ~130 aircraft in 2024, ~15 cruise ships and 400+ managed hotels, giving capacity and procurement leverage. Digital platforms (CRM, dynamic pricing, ISO 27001/PCI‑DSS) plus long-term supplier allotments and skilled crews enable yield, reliability and safety across 100+ destinations.
| Key Resource | Metric (2023/24) | Impact |
|---|---|---|
| Brand & Loyalty | ~20m customers (2023); NPS mid-30s | Lower CAC, repeat bookings |
| Fleet & Hotels | ~130 aircraft (2024); 15 cruise ships; 400+ hotels | Capacity & seasonal flexibility |
| Digital & Data | CRM, dynamic pricing, ISO 27001 | Personalization, yield Mgmt |
| Contracts & Suppliers | Long-term allotments | Inventory certainty, cost control |
| Workforce & Ops | Pilots, crew, reps; 100+ destinations | Service delivery, compliance |
Value Propositions
End-to-end holiday convenience
Single booking from TUI covers transport, stay and transfers, reducing planning effort and stress for customers and aligning itineraries to minimize misconnect risks. With TUI serving over 20 million customers annually, coordinated logistics and one accountable provider simplify support and claims. This end-to-end convenience lowers customer friction and improves on-trip resilience.
Competitive bundled pricing
Competitive bundled pricing lets TUI pass economies of scale savings to customers, leveraging group purchasing to lower unit costs and support market-leading package rates; in 2024 TUI reported c. €18.1bn group revenue, underpinning this scale. Dynamic packaging algorithms assemble the best component mix in real time, while transparent total-trip pricing reduces surprises and included value-adds like baggage and transfers improve perceived value and conversion.
Reliable, safe operations
TUI emphasizes reliable, safe operations through strict on-time performance targets and robust contingency plans to manage disruptions across air, cruise and ground services. A group-wide safety culture enforces uniform standards for crew, vessels and vehicles, while rigorous quality controls vet partner hotels and excursions. Customers have access to 24/7 assistance and dedicated local teams to resolve issues rapidly.
Personalized experiences
- Recommendations: history + preferences
- Flex: duration, board, activities
- Segments: families / couples / solo
- Upsells: budget- and interest-led
Sustainable travel choices
TUI promotes sustainable travel through investments in fuel‑efficient aircraft (MAX/neo orders) and hotel certification programs, aligning operations with its net‑zero by 2050 commitment reported in 2024.
Carbon management and annual reporting are embedded in group disclosures, while responsible excursions and local supplier support are channeled via TUI Care Foundation and partnership programs.
- fleet upgrades: MAX/neo orders
- net‑zero target: 2050 (2024)
- certified hotels & responsible excursions
- carbon reporting & local supplier support
End-to-end travel packages: 20m+ customers, c. €18.1bn revenue, ~15% ancillary lift
TUI offers end-to-end packages covering transport, stay and transfers, serving 20m+ customers annually and simplifying support and claims; group revenue was c. €18.1bn in 2024. Competitive bundled pricing, dynamic packaging and scale drive lower unit costs and ~15% ancillary lift. Safety, 24/7 local support and sustainability (net‑zero by 2050, MAX/neo orders) strengthen trust and long‑term value.
| Metric | 2024 / Note |
|---|---|
| Customers | 20m+ |
| Group revenue | c. €18.1bn |
| Ancillary uplift | ~15% (McKinsey) |
| Net‑zero target | 2050 |
| Fleet upgrades | MAX/neo orders |
Customer Relationships
Omnichannel support
Omnichannel support ensures consistent service across TUI stores, phone, web, and app, reducing friction and boosting repeat bookings; a 2024 industry survey found roughly 70% of travelers expect uniform experiences across channels. Seamless handoff between channels preserves context so agents pick up where digital tools left off. Self-service handles routine tasks like bookings and check-ins, while trained staff intervene for complex cases or disruptions.
Loyalty and rewards
Tiered benefits drive repeat bookings by rewarding frequency: members earn points on flights, hotels and cruises and unlock silver/gold/platinum perks that boost retention. Points accrue across TUI Airlines, TUI Hotels and TUI Cruises, redeemable for discounts, upgrades and onboard credit. Perks include free cabin upgrades, priority check-in and lounge access, improving NPS and ancillary spend. Strategic partnerships with airlines, banks and OTAs extend earn-and-burn options and expanded redemption reach in 2024.
Proactive travel care
Proactive travel care delivers real-time notifications on changes and disruptions via app and SMS, cutting missed connections by up to 30% per 2024 industry mobility reports. Pre-trip guidance consolidates passports, visas and insurance reminders to reduce no-shows. In-destination check-ins and 24/7 assistance use geolocation for faster response. Post-trip follow-up gathers feedback to drive repeat bookings and lift NPS.
Community and content
Community-driven itineraries and user reviews boost conversions and trust; in 2024 TUI reported content-led channels lifted organic traffic by 18% and increased booking conversions. Social engagement fuels advocacy and referrals, while expert tips raise average booking value and ancillary spend. Rich content also improves SEO, driving discovery and lower paid acquisition costs.
- user reviews: trust & conversion
- social engagement: advocacy & referrals
- expert tips: higher trip value
- content: SEO & discovery (+18% organic 2024)
Corporate and group account management
Corporate and group account management delivers dedicated MICE and group-travel support with contracted rates and bespoke packages, enabling TUI to tailor offerings for events, incentives and large bookings. Flexible payment terms and centralized invoicing simplify reconciliation for corporate clients while service-level agreements (SLAs) guarantee reliability and responsiveness for peak-season operations. In 2024 TUI reinforced account teams to prioritize responsiveness and standardized SLAs across key markets.
- Dedicated MICE support
- Contracted rates & custom packages
- Flexible payment & invoicing
- SLA-backed reliability (2024 rollout)
Omnichannel + tiered loyalty: reduce missed connections 30% and boost organic traffic 18%
Omnichannel support ensures consistent service across stores, phone, web and app; 2024 survey: ~70% of travelers expect uniform experiences. Tiered loyalty (silver/gold/platinum) boosts retention; points usable across TUI Airlines/Hotels/Cruises. Proactive travel care cuts missed connections up to 30% (2024 mobility reports). Content-led channels lifted organic traffic +18% (TUI, 2024).
| Metric | 2024 |
|---|---|
| Omnichannel expectation | ~70% |
| Missed connections reduction | up to 30% |
| Organic traffic uplift | +18% |
Channels
Owned websites and apps
TUI’s owned websites and apps are the primary booking and servicing touchpoints, supporting search, personalization, secure payment and add-on sales; TUI operates across more than 30 source markets and around 180 destinations. They enable self-service itinerary changes and ancillaries (seats, transfers, insurance) and provide trip management plus real-time messaging and notifications to customers. Digital channels drive a majority of direct interactions for the group.
Retail travel agencies
Retail travel agencies provide advice-led sales and trust through face-to-face interaction, supporting high-touch handling of complex bookings. TUI operates around 1,600 retail shops across Europe, delivering local market reach and steady walk-in traffic. These outlets enable cross-sell across TUI brands and products, raising basket sizes and loyalty through bundled offers.
Contact centers
Contact centers provide phone and chat sales/service for TUI, handling disruptions and special requests with multilingual teams across time zones to convert complex itineraries efficiently. In FY 2023 TUI reported revenue of €16.3 billion, underlining scale and the need for high-capacity support channels. Real-time routing and specialist agents drive higher first-contact resolution for multi-leg bookings.
OTAs and meta-search
OTAs and meta-search broaden TUI distribution to price-sensitive shoppers, driving incremental traffic through comparison engines and enabling dynamic packaging via APIs; in 2024 Booking Holdings and Expedia Group still account for roughly 70% of OTA gross bookings, making pay-for-performance acquisition essential for cost-efficient growth.
- Broaden reach to price-sensitive segments
- Incremental traffic via meta comparisons
- Dynamic packaging through API integrations
- Pay-for-performance reduces CAC, aligns spend with conversions
B2B partners and wholesalers
B2B partners and wholesalers sell TUI inventory through tour operators and travel agents, with contracted blocks for groups and MICE stabilizing shoulder-season occupancy; TUI reported carrying 21.1 million customers in FY 2024, supporting predictable group revenue and load factors. Co-op marketing with partners extends reach and reduces customer-acquisition costs.
- Channels: B2B partners, wholesalers
- Benefits: stable load factors, shoulder-season demand
- Mechanisms: contracted blocks, MICE, co-op marketing
Digital-first travel: personalized web/apps, 30+ markets, 1,600 shops, 70% OTA
TUI’s digital channels (web/apps) drive most direct bookings with personalization, ancillaries and real-time messaging across 30+ source markets and 180 destinations. 1,600 retail shops deliver high-touch sales and cross-sell. Contact centers and OTAs (Booking/Expedia ~70% OTA share) handle complex bookings and price-sensitive demand. B2B/wholesale (21.1m customers FY2024) stabilise load factors.
| Metric | Value |
|---|---|
| FY2023 revenue | €16.3bn |
| FY2024 customers | 21.1m |
| Retail shops | 1,600 |
| Source markets/dests | 30+/180 |
| OTA share | ~70% |
Customer Segments
Families and multigenerational
Families and multigenerational groups prioritize convenience, safety and value, favoring package deals and reliable transfers. They prefer kid-friendly hotels and activities with children’s clubs (common for ages 3–12) and family-oriented amenities. School holiday windows — e.g., summer breaks of about 6 weeks and shorter winter/spring breaks of ~1–2 weeks — concentrate demand. They often book early to secure adjoining or interconnecting rooms.
Couples and leisure duos
Couples and leisure duos seek relaxation, romance and short breaks, driving demand for weekend and 3–7 night packages. They show strong interest in adults-only and boutique options, often booking premium rooms and private experiences. Flexible with dates outside peak, they accept midweek travel and last-minute offers. In 2024 leisure travel recovered to roughly 90% of 2019 volumes, supporting upsell potential.
Solo and adventure travelers
Solo and adventure travelers seek curated activities and social options that connect them with local guides and small-group experiences; searches for solo trips rose ~45% vs 2019 (Google Travel, 2024). They favor transparent pricing without single‑amendment penalties and shorter lead times, often booking within weeks. Safety and local authenticity are paramount, with 72% valuing immersive local experiences (Booking.com, 2024).
Premium and cruise customers
Premium and cruise customers expect elevated service standards, valuing suites, specialty dining and curated excursions; they pay premiums for convenience and exclusivity and drive higher lifetime value and referrals — TUI reported strong luxury demand as premium bookings grew in 2024 versus 2023.
- High service expectations
- Pay for suites, dining, excursions
- Willingness to pay premium
- Higher LTV and referrals
Groups, MICE, and affiliations
Groups, MICE and affiliations require negotiated rates and flexible terms, so TUI negotiates volume-based pricing and blackout exceptions to secure bookings. They need logistics for large parties and dedicated coordination teams for transport, accommodation and F&B. Demand for meeting spaces and on-site coordination is high, with many contracts repeating annually or seasonally; TUI served about 18 million customers in 2023 (TUI Group).
- Negotiated rates, flexible terms
- Logistics for large parties
- Meeting spaces and coordination
- Repeat annual/seasonal bookings
Leisure travel ~90% of 2019: families value, solo searches +45%, premium spend rising
Families prioritize package value, kid amenities; peak demand in ~6-week summer and 1–2 week winter/spring windows; early bookings common.
Couples seek 3–7 night premium stays and adults-only options; 2024 leisure recovered to ~90% of 2019, supporting upsells.
Solo/adventure (+45% searches vs 2019) and premium/cruise guests drive higher spend; TUI served ~18m customers in 2023.
| Segment | Key facts |
|---|---|
| Families | Peak windows: ~6w summer; early bookings |
| Couples | 2024 demand ~90% of 2019 |
| Solo/Adventure | Searches +45% vs 2019; 72% value local experiences |
| Premium/Cruise | Higher spend; TUI served ~18m (2023) |
Cost Structure
Fleet and asset expenses
Fleet and asset expenses at TUI encompass aircraft and ship leases, depreciation and financing costs tied to a fleet of roughly 100 aircraft and six cruise ships in 2024, driving significant fixed charges. Heavy maintenance and dry-dock cycles (multi‑year checks for ships and C‑checks for aircraft) create lumpy capex and OPEX, often representing double‑digit percent shares of fleet budgets. Regular cabin refurbishments and retrofits sustain yield and brand value but add recurring capital spend. Insurance and regulatory compliance further raise unit costs, especially after marketwide premium increases post‑pandemic.
Fuel and energy
Jet fuel and marine fuels are major variable costs, historically accounting for roughly 20–30% of airline operating expenses and a significant share for cruise operations; volatility is partly mitigated through hedging programs and fuel surcharges. TUI reports active hedging to smooth price swings while fleet renewals and slow-steaming cut consumption. Regulatory push like ReFuelEU (2% SAF mandate by 2025) raises sustainable fuel premiums, increasing unit fuel cost pressure.
People and operations
People and operations costs at TUI include wages for roughly 30,000 crew, reps and support staff, driving personnel expenses of about €3bn in FY 2023/24; training, uniforms and staff travel add materially to fixed and variable payroll overheads. Ground handling and catering contracts—outsourced across airports—represent significant per-flight cost pools, while call centre and retail staffing sustain peak-season headcount increases of 20–30% to handle booking volumes.
Distribution and marketing
Distribution and marketing costs for TUI center on performance media, affiliate partner commissions and GDS/payment processing fees, plus fixed store rents and utilities; content production and CRM tooling drive ongoing customer acquisition and retention spend.
Performance media and affiliates are paid on CPA/commission models while GDS and payment fees add per-booking costs; physical retail rents remain a fixed overhead and content/CRM investments scale with digitalization.
- Performance media: CPA/commission models
- GDS & payment: per-booking fees
- Store rents/utilities: fixed overhead
- Content production & CRM: scalable tech spend
Supplier and destination costs
Supplier and destination costs for TUI center on negotiated hotel allotments, transfer and excursion margins, plus port charges, landing fees and slot-related airport costs; local taxes and compliance (VAT, tourist levies) materially increase per-booking costs and operators typically hold a contingency reserve for disruptions.
- Hotel allotments: negotiated block rates with volume discounts
- Transfers/excursions: variable margins, supplier commissions
- Port/landing/slots: fixed fees + slot charges
- Local taxes: VAT/tourist levies raise unit costs
- Contingency: typical 3-5% operational reserve
Fleet-heavy travel group: fixed fleet costs, fuel 20–30%, €3bn payroll, variable per-booking fees
TUI's 2024 cost base is driven by fleet (≈100 aircraft, 6 cruise ships) with heavy fixed charges and lumpy maintenance, fuel representing ~20–30% of airline costs, personnel ~30,000 with €3bn payroll (FY23/24), and supplier/hotel allotments plus taxes adding variable per‑booking costs.
| Category | 2024 metric | Impact |
|---|---|---|
| Fleet | ~100 AC, 6 ships | High fixed & capex |
| Fuel | 20–30% op.costs | Volatile |
| People | ~30,000; €3bn | Large fixed |
| Suppliers | Allotments & taxes | Variable per‑booking |
Revenue Streams
Package holidays
Package holidays form TUIs core revenue, bundling flight, hotel and transfer into a single SKU that drives high take-up and predictable cashflows. Yield optimization and dynamic pricing lift margins, particularly on peak summer and holiday windows when volumes concentrate. Seasonal peaks (typically summer and school breaks) can account for around 60% of annual package sales. Optional add-ons—excursions, insurance, room upgrades—typically increase basket size by double-digit percentages.
Flight-only and seat sales
Revenue from standalone air tickets forms a core cash stream for TUI, with ancillaries such as baggage fees and seat selection materially increasing per-passenger yield; charter and seasonal routes are deployed to match demand peaks and optimise load factors, while B2B bulk seat blocks sold to tour operator partners secure forward cashflow and reduce seat-risk for scheduled services.
Hotels and accommodation
Room revenue from TUIs owned and managed properties (around 400 hotels worldwide in 2024) forms a core direct revenue line, complemented by commissions on partner hotels typically in the 5–15% range. Upsells on board types and room categories drive ancillary revenue per booking, while dynamic, yield‑based contracts with suppliers and partners enhance pricing flexibility and improve overall margins.
Cruises and onboard spend
Cruise fares across itineraries and ships are core to TUI’s revenue mix; TUI Group reported €17.1bn revenue in 2023 with cruises a material segment. Onboard spend from dining, spa and retail materially boosts per-passenger yield, while shore excursion commissions and loyalty-driven repeat bookings sustain margins and occupancy.
- Cruise fares: base ticket revenue
- Onboard spend: dining, spa, retail
- Shore excursions: commission income
- Loyalty: repeat-booking yield
Ancillary and service fees
- Travel insurance, transfers, activities: bundled sales, €1.7bn ancillary (2024)
- Change fees & priority services: high-margin upsells
- FX & payment options: steady fee income
- Advertising/co-op marketing: monetizes supplier relationships
Package holidays lead revenue; ancillaries ≈€1.7bn (~10%)
Package holidays are TUIs core revenue driver with seasonal peaks (≈60% of package sales) and dynamic pricing lifting margins. Standalone air and charter tickets plus ancillaries boost per-passenger yield and secure forward cashflow. Owned/managed hotels (≈400 in 2024) and cruise fares complement base revenue; ancillaries totaled ≈€1.7bn (≈10% of group revenue in 2024).
| Metric | Value |
|---|---|
| Group revenue (2023) | €17.1bn |
| Ancillaries (2024) | ≈€1.7bn (~10%) |
| Hotels (2024) | ≈400 properties |
| Seasonal package peak | ≈60% of package sales |