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TUI UK is to slash 800 jobs across the business in a major
restructure to drive more business direct.
A total of 3,200 staff within the tour operating, airline and
retail divisions have entered a three-month consultation.
Sources estimate the cuts will save TUI UK between £40
million to £50 million, although TUI refused to comment.
Significant cuts are anticipated at the Specialist Holidays
Group’s underperforming summer brands, which include Magic
Travel Group, Crystal and Thomson Villas.
Shop staff are not involved although plans have been unveiled to
reduce the retail network and shop leases will be reviewed as they
expire. Industry sources predict shop numbers could be slashed from
800 branches to a figure nearer 500.
The shake-up will mean more bookings sold direct, less overseas
reps and welcome meetings, and specialist summer brands.
The airline fleet is to be rebranded Thomsonfly, the name of its
no-frills business, with investment in extra aircraft and in-flight
refurbishment.
TUI UK managing director Peter Rothwell said the changes were to
enable TUI UK to compete in a more competitive environment. “We
want to boost the amount of holiday, flight seats and hotel rooms
we sell through direct channels as this drives down our
distribution costs,” he said.
TUI has already announced the merger of TUI UK, Britannia and
SHG under the TUI UK business, with one board. It will now scale
back its presence at its London offices.
A Transport Salaried Staffs’ Association spokeswoman
reacted: “We are stunned and shocked.”
Many in the trade were unsurprised by the cuts which follow the
axeing of five senior directors. First Choice MD of UK distribution
John Wimbleton said: “Every business has to look at its shape.”
All Leisure Group chairman Roger Allard added: “The market has
changed and vertically integrated operators have to move with the
times.”
Other observers said the redundancies could signal cost-cutting
among rivals. A source close to the company warned: “This
isn’t just a Thomson issue, it’s one for all the big
four. This is only the start.”
Holiday Brokers chief executive Steve Endacott added: “It was
MyTravel’s turn last year, TUI’s this year and I
wouldn’t be surprised if it’s Thomas Cook’s and
First Choice’s turn next year.”
Meanwhile, a big four rival said: “TUI has ‘big
company’ syndrome – it has 100 shops too many.”
Independent Options business development director Sue Foxall
said: “If it wants to sell direct then fine, we won’t bother
selling its product.”
The news comes in a black week for travel with the collapse of
Golden Sun Holidays and 1,200 job cuts at P&O Ferries. Another
operator was thought to be near collapse as Travel Weekly went to
press.