TUI (TUI1) CMD 2025 summary

Strategic direction and transformation

• Transitioning into a global curated leisure marketplace, expanding beyond traditional tour operations to offer dynamic packaging, accommodation-only, flight-only, and a broader range of leisure experiences, both at home and abroad.

• Accelerating digitalization with app-first personalization, AI-powered platforms, and global scalability to reduce costs and improve customer engagement.

• Expansion into new markets, including Southern and Eastern Europe, Latin America, North America, and Asia, leveraging global platforms and partnerships for efficient rollout and cross-market synergies.

• Emphasis on vertical integration and cross/up-selling, leveraging synergies between Markets & Airlines, Hotels, Cruises, and Musement to drive superior occupancy, load factors, and customer lifetime value.

• Commitment to ESG as a core value, integrating sustainability into operations and product offerings, including investments in green energy and social initiatives.

Financial guidance and targets

• Reaffirmed midterm ambition of 7%-10% EBIT growth/CAGR, with a specific target to increase Markets & Airlines EBIT margin from 1.5% in FY 2024 to above 3% within three to five years.

• Revenue growth guidance set at 5%-7%, with customer volume growth expected to be slightly below revenue growth.

• Distribution cost for Markets & Airlines currently at 10% of revenue, with significant cost reduction expected as app share grows and digital channels expand.

• Ongoing investment in hotels, with a signed pipeline to reach 500 hotels in 2.5 years and an ambition to grow to 600 midterm, focusing on asset-light and management/franchise models.

• Cruise business to benefit from new ship deliveries and potential Marella re-fleeting, targeting high returns on capital and leveraging government-backed financing for new builds.

Business developments and operational highlights

• Markets & Airlines division transforming to a functional, scalable model, with increased focus on dynamic packaging, direct supplier connections, and risk-light growth.

• Hotel business demonstrates resilience and strong profitability, with rapid post-COVID recovery, high occupancy, and expansion into new regions, especially Southeast Asia; portfolio growth of 15-25 hotels annually with asset-right expansion.

• Cruise segment operates in niche markets (Germany, UK), with differentiated products, high customer satisfaction, and expansion through new builds and Marella re-fleeting.

• Musement (experiences and excursions) positioned as a curated, vertically integrated product business, expanding into city and local experiences, with over 10 million experiences sold and digital distribution growth.

• Technology transformation ongoing, with full integration and decommissioning of legacy systems expected by 2026, enabling further cost efficiencies and platform-driven growth.