Tui Group does ‘utmost’ to increase sales from retail travel agencies

The boss of Tui Group has reiterated support for high street agencies despite the fact that they are not the most cost-efficient sales channel.

 

Group chief executive Sebastian Ebel commented on bricks-and-mortar distribution while outlining the tourism group’s Q1 figures, saying: “Retail is very important for us.”

 

“We do see it’s not the most cost-efficient sales channel, but, from the margin standpoint, it’s a very good sales channel, and therefore we do our utmost to grow in these channels and to make sure that retail recognise what we do for them.

 

“I was visiting retail outlets on Friday. There’s strong support for Tui there, and that’s our target for today, for tomorrow and for the long-term future.”

 

Tui Group has about 1,200 travel agencies and also sells via third-party agents in the UK and Germany.

 

More: Tui chief promises ‘no change’ in backing for independent travel agents

 

The Q1 results statement reported: “We are also continuing to invest in stationary distribution – in Eastern Europe alone, we are opening 50 new travel agencies this year.

 

“Travel agencies remain important partners: many customers book earlier and higher quality there. That’s why this partnership is important for both sides.”

 

The results statement also noted: “Winter weather in the source markets in recent weeks has led to a later booking time.”

 

Ebel said snowy weather had meant lower footfall in agencies in the UK and Germany but as the snow melts, the “weakness” will change to a “catch-up” situation for retail.

 

The results highlighted how the Tui app is becoming increasingly popular, noting: “We continue enhancing our app as a key building block of our transformation.

 

“In Q1, we continued to improve the app experience for searching and booking holidays, including simplifying how customers can edit their package and enabling detailed ratings and reviews to support customers finding the right hotel.

 

“We also increased personalisation with tailored Best Sellers carousels according to a customer’s search history.

 

“As a result, app conversion rate grew by 12% against previous year.”

 

Ebel said: “There is still a lot of room for improvement for growing the app sales, and we are on a continuously good path forward.”

 

He said new features, such as AI search, are regularly added as Tui looks to increase sales via the app and reduce costs “significantly”.

 

Ebel also noted how the group was “very proud” of the new partnership between Jet2 and Tui Musement, which will enable Jet2holidays and Jet2.com customers to add excursions, activities and attraction tickets to their bookings.

 

He said it follows partnerships with Booking.com, easyJet and lastminute.com, adding: “It is a big responsibility for us, and it’s a big move for us in the B2B space.”

 

Meanwhile, former easyjet chief executive Johan Lundgren, who had already been appointed as a member in June  2025, will continue to serve on Tui’s supervisory board. 

 

This came as the company’s annual general meeting confirmed a reduction in the size of the board from 20 to 16 members.