TUI's Digital Bid to Draw in New Independent Travelers

08.09.2023 - 14:25 / skift.com / Sebastian Ebel / Selene Brophy / Peter Ulwahn / Cruises

TUI Group wants to shift more than 50% of its bookings to its TUI App, an ambitious long-term goal for Europe’s largest holiday package tour operator, given that app bookings account for less than 10% of its sales in key markets like the UK and Germany. 

TUI Group CEO Sebastian Ebel shared the target and the company’s recent return to profitability earlier in August. With more than 21 million customers annually, the company is focused on a digital shift in addition to its traditional brick-and-mortar travel agencies with 3,500 agents.

Ebel wants to transform the TUI app into a one-stop shop for travel. The goal is to reduce the high costs associated with performance marketing channels like Google and improve TUI’s repeat bookings through loyal customers.

Peter Ulwahn, CEO of TUI Musement, the group’s tours and activities division, and Jessica Enbacka, Nordics market managing director, joined Skift in an exclusive interview to discuss the strategic shift. 

“In terms of digital transformation, we were offline before. Now we are transforming the company, and we really want to compete with the other OTA players in the space when it comes to technology,” said Ulwahn.

Headquartered in Germany, TUI’s global travel operations include more than 400 hotels, 16 cruise ships, five airlines with 130 aircraft, more than 88,000 tour and activity experiences, and approximately 1,200 travel agencies.

TUI Musement also has business-to-business partnerships that account for 50% of its revenue, including with Expedia and Booking.com. Most recently, TUI added Holiday Check and Juniper Travel as distribution partners.

While TUI is traditionally known for booking holiday packages that include flights, accommodation, and experiences, the company has started selling standalone accommodation, and tours and activities on new TUI platforms. Over the past six months, TUI launched:

The unbundling of its traditional offering in this way created the opportunity to upgrade the TUI app, according to Ulwahn. The TUI app, also known as the TUI Digital Assistant, initially launched as a communication tool to its customers in 2014. The app’s direct, integrated booking with all TUI’s products, including flights, accommodation, experiences, and holiday packages, is now a central point for travelers to search, plan, and book all aspects of their holiday, explained Ulwahn.

When asked if the group would continue offering its branded hotels app, called TUI Blue, and whether that could dilute the focus and confuse customers, Ulwahn said, “All products will be available via the TUI app. On the other side, there is still a need for some separate apps – like TUI Blue or Robinson – which our guests use to interact with their hotel room or check