Tui Travel described direct distribution channels as being “central” to the group’s strategy as it unveiled its full year trading results today.
“By increasing the direct distribution of our holidays we lower distribution costs, reduce the reliance on third party distributors and can build on our customer relationships,” Tui said while issuing improved annual financial results.
“Our direct distribution mix improved by two percentage points over the year to 68% of mainstream sales, with improvements in all three largest source markets.
“The improvement in direct distribution was driven by the online channel which also increased by three percentage points in 2014 to 38% of mainstream sales.
“During the year, we generated £4.1 billion of revenue online within our mainstream business, reflecting 6% growth in online package bookings.”
The company added: “We continue to drive the online customer experience through investments made in our online platforms.
“This helped to deliver a tangible increase in conversion as customers booking their holidays experienced an enhanced user interface including focused search functionality.
“We expect that our other key source markets will join the UK and Nordics on the same online platform during 2015.
“Our websites are tablet and mobile optimised as our customers increasingly use their tablets and mobile devices to dream, plan, search and book with us.
However, Tui Travel plans more ‘next generation’ stores at “high footfall” sites in the UK to add to 23 currently open following the first in Bluewater late last year.