Tui to open 20 new destinations as travel group moves to strengthen hotel business
Travel agent Tui has announced it is set to open 20 new hotels across Europe, Africa and Asia this summer as the company targets further growth in the sector.
The company opened 10 new hotels on 1 May and plans to launch 20 and a new yacht by the end of the Summer season.
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Tui is aiming to strengthen its high-margin hotel segment, which accounts for 30 per cent of the company’s earnings, as the business is less cyclical than its “highly competitive” core tour operator business.
The company is expanding its adults only Sensimar brand and luxury offering Sensatori, as well as its Family Life and all-inclusive Magic Life lines.
Tui’s joint venture partners Riu and Atlantica are also expanding their portfolios.
Tui executive board member Sebastian Ebel said: “Hotels and resorts, cruises and destination experiences are Tui’s major growth areas.
“We are consistently expanding these businesses, which already account for around 70 per cent of our group’s earnings.
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“The hotel segment is less cyclical than the highly competitive traditional tour operator business, now accounting for 30 per cent of Tui’s earnings.
“We are consistently investing in hotels, ships and the expansion of our digital platforms for destination activities.”