The majority of Tui’s travel agency branches will escape a hike in business rates next year.
Business rates are due to rise in April by September’s Retail Prices Index (RPI) rate of 3.9%, with about 1.8 million businesses paying more.
However, Tui UK and Ireland managing director Nick Longman told the BBC that the rate rise will mostly affect London and the south-east.
Most of Tui’s 600 shops are not in this area.
“We are actually seeing a rate decrease overall on our shop portfolio from next year,” Longman said.
“We think the rebasing that was performed is fair, and I think we’re happy with that.”
His comments came as the Thomson name disappeared from UK high streets in a major rebrand to Tui today.
Longman said: “Thomson’s been around for over 50 years, and I’m sure all of us have great memories of going on holiday with Thomson, but I think we’re doing it for a couple of reasons.”
Tui is the biggest travel business in the world, and part of a global brand “with the strength that that gives us.”
But the main reason is that holidays “have evolved over the years” to include city breaks and more activities – while Thomson is synonymous with package beach trips, according to Longman.