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TUI Brings ‘Hotelbeds’ Onboard to Boost Leisure Options

European travel giant TUI Group recently announced that it was expanding its leisure and personalized offerings including excursions, transfers, tours and activities at holiday destinations adding to its roster Spanish hotel room specialist Hotelbeds Group.

TUI acquired the “Destination Management” business of Hotelbeds for 110 million euros.

Besides offering clients more customized services including airline seat upgrades, specific hotel rooms and wide choice of activities upon arrival to their destination, TUI said it also plans to include services for cruise ships at ports.

TUI particularly wants to make better use of the average of four months between travel booking and travel start in order to offer customers individually relevant offers for their stay at the holiday destination, said TUI CEO Fritz Joussen, adding that the global market for these services is growing.

“Advice, booking, flight, hotel and leisure activities at the resort come from a single source. The customer has one contact person, that is TUI,” he said.

CEO Fritz Joussen presented TUI Group's Q1 results during the annual general meeting in Hanover.

TUI Group CEO Fritz Joussen.

The global market for services at holiday destinations is estimated at around 140 billion euros. TUI Destination Services develops and arranges around 4.5 million excursions per year making TUI subsidiary one of the top five providers worldwide. With the takeover, the Spanish subsidiary TUI Destination Services will be present with branches and staff in 48 countries, employing over 9,000 people and generating sales of 700 million euros.

Hotelbeds Group “Destination Management” Division is active with 2,600 employees in 25 countries, including Italy, Croatia, Mauritius, South Africa, Australia, Canada and many Asian countries.

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