monitor de mercados: visión de un key player
DESCRIPTION
2ª Jornadas de Monitor de Mercados: mercado alemán, organizadas por Invattur. Ponencia de Ian Livesey, Director TUI España: Visión de un Key player.TRANSCRIPT
TUI Travel PLC The new scenario in Tourism through the eyes of the market leader
Ian Livesey Head of Specialist TUI Travel plc A&D, Spain &
Andorra
1. TUI Travel, TUI AG & TUI Travel A&D
2. The new scenario in tourism
3. The impact of the new environment for TUI Germany
4. TUI´s strategy: Differentiation by adding value
Contents
1. TUI Travel, TUI AG & TUI Travel A&D
TUI Travel, TUI AG & TUI España
TUI Travel PLC
TUI AGFirst Choice
Holidays PLC
Creation of TUI Travel plc
• Market leader in tourism on an international level
• Presence in 180 countries worldwide
• 20 outbound markets
• More than 30 million customers
• Fleet of 156 planes
• 3500 points of sale in Europe
• 48.000 employees
• 200 brands
• Turnover of 18.764 mio. € in 2007
• Results (EBITA): 419 mio. € in 2007
TUI Travel, TUI AG & TUI España
TUI Travel plc in numbers
Tour Operators
Aircrafts Destination
Services
Hotels
Approx. 3,500 travel
agencies
More than 200 brands
and products with 30 mio.
clients
156 aircrafts More than 20 incoming
agencies
237 hotels with
144,000 beds
Travel Agencies
TUI Travel, TUI AG & TUI España
TUI Travel plc in numbers
Arrival Home
Flight
Check in
Airport
Return
Airport
Check in
Flight
Arrival Journey
Excursions
Hotel
Transfer
Arrival inDestinationIn Destination
Travel Agent
Brochure
Booking
Travel Document
s
Before Holiday
TUI Travel, TUI AG & TUI España
Travelling with TUI – from the travel planning to the return
OUR BUSINESS
Incoming
Transport
MICE
207 M€ 800 emp
42 M€ 390 emp
31 M€ 105 emp
Costa AlmeríaCosta del Sol
Costa de la Luz
Costa BravaCosta Dorada
Costa Blanca IslasBaleares
IslasCanarias
Costa AlmeríaCosta del Sol
Costa de la Luz
Costa BravaCosta Dorada
Costa Blanca IslasBaleares
IslasCanarias
207 M€ 800 emp
42 M€ 390 emp
21 M€ 75 emp
Incoming
TRANSPORT
MICE
Our business
20 offices205 vehicles150 service points320 guides in high season2.000.000 excursions sold1.200 events organised
…nearly 5 million customers in 2008
TUI Travel, TUI AG & TUI España
TUI España is the Nº1 Incoming Agency in Spain
2. The new tourism environment
Spain is a mature market and a safe destination.• Expert and repeater clients
Entry of new competitors in the market• Opening of new destinations
Incorporation of new technologies in all parts of the touristic value chain.• Incorporation of low cost airlines• Increased price transparency for the customer• Increased autonomy for the customer in the organization of the trip
The New Tourist EnvironmentFactors
Changes in the customers´needs• Preference for a more differentiated product• Cost and quality as two factors for the purchase decision
Reduction of the average stay• More trips, shorter stays and less average spending
Financial and economic crisis worldwide• Climate of mistrust• Increase of fuel prices
Lack of talent in the labour market.
The New Tourist EnvironmentFactors
WELL INFORMED customers
The New Tourist EnvironmentFactors
SATISFIED customers
But FEW SURPRISED
The New Tourist EnvironmentFactors
A CHANGE…
FROM A SELLERS MARKET…
TO A BUYERS MARKET
3. The impact of the new environmentfor the touroperator TUI Germany
Volume market, quality-orientated
Premium Market
Volume market, attractive pricelevel
Last-minute market, direct sales
Specialist market (roundtrips)
Main brand with
highest volume
TUI Germany covers all market segmentswith its differents brands
Market volume
Low High
PriceEconomic Quality Exclusive
Medium
Principal market of TUI
In the past, the intermediate segmentrepresented the most important volume of the market
Low High
Price
Price-orientated segment
Specialist segment
Market volume
Medium
Collapse of the intermediate segment
Principal market of TUI
In the new environment, the market is undergoing a polarization
Individualization
- Tomorrow -
“Cluster“
- Today -
Mass Demand
- Yesterday -
The demand is getting more and more individualised
Some brands have already adapted their strategy successfully
Differentiation is the key.
Standard products no longer fulfillthe new market requirements
4. The strategy of TUI: Differentiation by adding value
Strategic approaches:• “Multichannel approach” with special importance of the internet• Specialisation: “Target groups”• Own and exclusive products• Fidelization of the customers by a complete offer, including services with added value
The strategy of TUI is based on four pillars
Travel Agencies Internet Callcenter
TUI Leisure Travel980 franchise agencies440 branch agencies
TUI Interactivewww.tui.comwww.tui-hotels.comwww.1-2-fly.comwww.discount-travel.com...
TUI 4 UCallcenter in Bremen, Germany
Multichannel distribution:The distribution of TUI is based on three channels
Different product lines with TUI brand,
classic holiday package and modular products (components)
Classic touristic package holiday,
TUI brochures for different destinations
yesterday today
Differentiation by target groups:from a mass-market product to an individualised product
TUI Schöne FerienClassic package holiday and hotel only
TUI PremiumExclusive segment(luxury -> airtours)
TUI Schöne Ferien FamilyFamilies
TUI Schöne FerienClubsClub hotels for families and couples
Differentiacion by target groups:different product lines for different target groups
• Target group: medium-age couples• Hotels with reduced volume (max. 250 rooms), always situated in seafront• 4 – 5 stars• “Comfort & Convenience”• Personalized and individualized service• 100% orientated to the needs of the German market• Reservations exclusively via TUI• As of summer 2009, the first 3 hotels in Greece and Turkey
Own exclusive products:The brand Sensimar Hotels was launched in summer 2009
“You are not flying with a
plane. You fly with us.
Welcome on board.”
Promotional campaign
highlighting the service level
Differentiation of services by adding value:Quality campaign of TUIfly in January 2008
Assistance by German-speaking reps in all destinations, 24/7 service telephone
System for complaints handing in the destination, if the complaint cannot be settled -> compensation directly in the destination
Publication of guest satisfaction with hotel according to CSQ in the brochure (hotel in general, service, facilities, food)
“Zug zum Flug” (train to the plane) all holiday packages include a first class train ticket to the departure airport (and return)
Differentiation of services by adding value:Examples for additional services for TUI customers
Slogan: “Holidays with TUI – you deserve it.”
Message: TUI treats all customers like VIPs.
Differentiation of services by adding value:Promotional campaign with German national team coach
Reflexiones...The future…
Flight
Distribution
Tour Operator
Hotels
Dest. services
Demand
Previously:The distribution and the tour operators
were the growth drivers.
Previous model
In the future:All parts of the touristic value chain will
become growth drivers.
Distribution
Tour Operator
FlightDestination
services Hotels
Demand
New model
In the new touristic model:the main growth potential are the product areas
Thank you for your attention