Our unique business model focuses on integration and differentiation across Holiday Experiences and Markets + Airline. Our strategy is embedded in one central customer ecosystem, underpinned by our Sustainability Agenda and by our people. We are accelerating profitable growth by maximising customer lifetime value and leveraging synergies using our Markets + Airline distribution powerhouse to drive superior performance in Holiday Experiences. We are transforming TUI into a scalable, platform-based global curated leisure marketplace, offering more products to more customers through integrated brands. We are building a more agile, cost-efficient business with higher speed to market, delivering additional shareholder value.
Our Holiday Experiences (Hotels & Resorts, Cruises, TUI Musement) strategy focusses on asset-right, profitable growth in differentiated content, serving global demand.
Hotels & Resorts – We are driving growth by expanding our portfolio of twelve differentiated brands across new and existing destinations through ownership, our joint ventures, the TUI Global Hotel Fund as well as management and franchise contracts. Our signed pipeline of over 70 hotels includes more than 55 asset-light management and franchise hotels, reinforcing our strategy of delivering profitable growth with lower capital intensity operations. Growth investment into owned hotels targets ROIC significantly above 11% after three years.
As a next step in developing new vertically integrated destination clusters, we signed a strategic alliance agreement with the Sultanate of Oman’s Tourism Development Company OMRAN Group to position Oman as a leading year-round sun-and-beach destination. The long-term partnership centres on constructing and operating a first cluster of five new hotels in Salalah under leading TUI hotel brands, welcoming guests from as early as winter 2028. Oman will contribute land and capital to a joint venture (OMRAN 45%, TUI 45%, private investor 10%), while TUI contributes its expertise in hotel operations, distribution, airlines, and experiences, driving end-to-end profitability through our vertically integrated model. OMRAN will also become a 1.4% strategic shareholder in TUI, acquiring newly issued shares at €9.50 per share with a 3-year lock-up period. In exchange, TUI will receive its 45% stake in the joint venture as contribution in kind, with no cash contribution required.
Cruises – Growth is driven by investment into new-build ships through our TUI Cruises JV. Following the successful launch of Mein Schiff 7 (June 2024) and Mein Schiff Relax (March 2025), we will welcome Mein Schiff Flow in June/July 2026. Both Mein Schiff Relax and Mein Schiff Flow are expected to deliver €35m-€40m EAT (TUI 50% share) per annum. We have optimised our fleet strategy by transferring two new-build slots from Marella Cruises to TUI Cruises, (delivery scheduled FY31 and FY33), harnessing TUI Cruises’ robust financial position and proven growth capabilities. This reallocation reinforces our long-term growth ambitions in the UK and Northern European markets, while Marella Cruises continues its successful UK operations with its proven existing fleet.
TUI Musement -We target global capacity growth expanding our portfolio of experiences and transfers. Our product strategy focusses on differentiation, curated products, improved quality and identifying opportunities to capture further value, with own branded experiences as a key growth and profit driver. We continue to commercialise our TUI Musement distribution platform, with a multi-channel strategy selling direct to customer, via TUI Markets, and other travel providers. These initiatives are expected to deliver low double-digit CAGR in experiencesand slight growth per annum in transfers, generating overall low double-digit underlying EBIT growth per annum for the segment.
Markets + Airline – We have accelerated our transformation, focused on creating one scalable business centred on transformation of the tour operator and the commercialisation of the airline. These two platforms maximise vertical integration and generate profitable growth while driving operational excellence, implementing lean structures, creating operational efficiencies and reducing overheads. The transformation is designed to deliver underlying EBIT margin improvement to above 3% in the mid-term. The programme comprises of benefits from both growth and cost reduction measures. The substantial cost saving programme totals €250m broken down into 60% savings from overheads and cost reductions complemented by 40% savings from operational excellence initiatives. Full savings are expected to crystalise in FY28e, with 30% savings delivered in FY26e, accelerating to 60% in FY27e. To support the programme, we anticipate incurring implementation costs until FY27e of which €39m have been incurred in FY25 with €50m-€60m to come in FY26e.
Artificial Intelligence (AI) is reshaping search, with customers moving from search engines to AI-powered platforms for personalised answers. Our strategy is twofold: for OTA/search engine customers, we are making TUI content “AI-visible” and “AI-bookable” through AEO (Answer engine optimisation), GEO (Generative Engine Optimisation) and strategic partnerships. For brand-specific customers, we focus on differentiated content and making our brands “AI-friendly” by scaling reviews, videos, and photos. AI also enables a fully connected trip from inspiration to in-destination experiences leveraging our data to deliver hyper-personalised offers and seamless connectivity only TUI can provide.
Our global platforms strategy transforms TUI from local operations into an integrated global business through a modular, layer-by-layer approach (sourcing, production, sales), accelerating delivery, while ensuring we are AI-ready. Our Mindtrip partnership exemplifies this. Customers can now use AI to plan and seamlessly book complete travel packages in one place via the “Book with TUI” button, while also benefiting from the added security of TUI’s comprehensive crisis support and traveller protection that comes with package holidays.
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