Home / Travel / Tourism/ TUI buys Hotelbeds business to sell extra activities to holidaymakers

TUI buys Hotelbeds business to sell extra activities to holidaymakers


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 10 April 2018 00:00


Frankfurt/Berlin (Reuters): Europe’s largest tourism group TUI has expanded its business offering excursions and activities to holidaymakers by buying part of Spanish hotel room specialist Hotelbeds Group, aiming to take advantage of a growing market.

TUI, which is buying the business for 110 million euros ($136.27 million) in cash, had sold Hotelbeds in 2016 for 1.2 billion euros, but CEO Fritz Joussen said on 4 April it was impossible at that time to separate out the destination services business and that TUI had bought it back for a better price.

The deal will allow TUI to expand in the destination services market, which is estimated at around 140 billion euros and which is growing at a rate of around 7% a year, TUI said.

The destination services acquisition comes as TUI tries to provide more personalised products to customers throughout their holiday, such as such as airline seat upgrades, specific hotel rooms and then a choice of activities, once they reach their destination.

Joussen said TUI wanted to take advantage of the time between when a customer books a trip and when they actually go on holiday, typically around four months, in order to sell them additional activities, such as guided tours or Segway tours, at their holiday destination.

“That’s a period where we can virtually exclusively offer these customers such services,” Joussen told journalists. Joussen said that with up to 350,000 “micro-suppliers”, the market was highly fragmented, and TUI hoped to work more closely with them.

“They won’t find better access to the market than us,” he said.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

The rate of exchange, capital flight and the Central Bank

Friday, 21 September 2018

The Central Bank (CBSL) exists for the sole purpose of price stability. Its controls on the financial system and monetary policy exist to maintain price stability. As put forth many times by the Governor, the failing of the CBSL to control inflation


Red flag over the Sri Lankan Navy

Friday, 21 September 2018

Shocking story Rusiripala, a former banker in Sri Lanka, who has taken to writing in Daily FT, is perturbed by the red flag I have raised (Daily FT article 18 September) over the shocking charge that our Navy had operated a ransom gang that had abduc


The bald truth about fake news, etc.

Friday, 21 September 2018

In its most innocent forms, we may all enjoy a bit of ‘fake news’ and go to bed with a lighter heart and clean conscience. A meme on Facebook urging social media consumers to caution – “You can’t believe everything you read on the internet


Withholding Taxes – What, why, when?

Thursday, 20 September 2018

The tax regime in Sri Lanka historically imposes WHT on both domestic as well as cross border payments. WHT on domestic payments eases revenue collection (e.g.: PAYE) while WHT on cross border payments are adopted by most countries to ensure that the


Columnists More