Tui expects growth in its range of ‘exotic’ destinations to accelerate

Tui expects growth in its more “exotic” destinations to accelerate, thanks to building hotels in long-haul hotspots and a consumer campaign in 2026.

 

Neil Swanson, Tui UK & Ireland managing director, said traditional destinations such as Italy, Greece and Egypt are still very strong and growing but noted: “I am very excited about this exotic package holiday move – as we’re building our own hotels, that Far East, Africa, Middle East piece is a great growth opportunity, and they’re really exciting destinations for people to go to.”

 

He told a Travel Weekly webcast at Abta’s Travel Convention that the UK package holiday market is “incredibly healthy” and customers appreciate “that reassurance” if they are heading to the likes of China, Japan, Zanzibar or Oman.

 

“I am really confident in the product. The quality will be excellent,” he said, noting how five hotels will open in Oman for winter 2027-28.

 

“It is a sun and beach holiday for people to try somewhere just a little bit different.

 

“With the Tui brand and that trust, then I do believe they will try something a bit different.

 

“We will see that accelerate in future years. That is going to be one of those growth areas.”

 

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The Tui Group shook up its organisational model in September 2024, bringing elements such as its flights, hotels and experiences into one “Global Curated Leisure Marketplace”.

 

The change enables Tui to offer more third-party products, with its core business of classic packages complemented by dynamic packages and single components.  

 

Swanson told the webcast that Tui has talked about this strategy to the trade but is planning to market the flexibility and range of products directly to consumers in 2026.

 

“It is going to start exploding and really happening when we do that. So you can expect something along those lines next year,” he said.

 

“We are going to be telling customers about the breadth of what we’re doing.”

He said NPS [Net Promoter Scores] ratings on Ryanair are “just behind” Tui flights, adding: “Customers who are using that [dynamic packaging] offer are enjoying it. It’s great, but some customers still wouldn’t think to come to Tui for that flexibility.

 

“We need to start telling them that we are more than that.”

 

Commenting on Tui’s hotel building strategy, he said: “It is vertically integrated.

 

“Someone said to me: ‘Oh, that’s a blast from the past’.

 

“Actually, that is absolutely fundamental to what we’re doing – the fact that we own those hotels.

 

“We’re adding 15 to 20 hotels a year and a lot of interesting destinations.

 

“You can have the full Tui experience, or you can pick the bits that you’re interested in.”