Changing TUI

By | Category: Travel news
Is Australia losing its appeal? Or does it not appeal to TUI?

Is Australia losing its appeal to holidaymakers? Or does it just not appeal to TUI?

Yesterday TUI – the largest holiday company in Europe – announced that it was going to get rid of fifty of its brands because they don’t fit in with the plans of the company.

A few years ago, general holiday providers were snapping up specialist holiday companies.

If the biggest tour operator is following this policy of getting rid of so many brands, will it have any effect on us holidaymakers?

Well-known names like Citalia, Hayes and Jarvis, Austravel, Sovereign, Le Boat, Sunsail and American Holidays are some of the 50 up for sale. A new owner may merge these known names into brands they own, they may stand alone or close. Their survival elsewhere will tell us a lot about the industry in the future. What we know about today is that our biggest tour operator obviously thinks that the generalist market will prevail.

However the saga unfolds, holidaymakers will still want these types of holidays.

TUI obviously plans that Thomson and First Choice will be the brands into which it pours its promotion the difference between the two being that First Choice offers only all-inclusive holidays whilst Thomson concentrates in traditional package holidays.

The decision by TUI suggests that they believe that the majority of us won’t be interested in boating holidays or trips to Australia; that Italian holidays are niche and upmarket escorted holidays appeal to few. Perhaps they haven’t seen recent figures suggesting that Italy will have a bumper holiday season as holidaymakers shun the eastern Med and settle for safer destinations like Italy, Spain and Portugal.

Perhaps the company has decided that they are not best suited to run specialist holiday companies but that seems absurd considering they have been doing just for that for quite a few years. It must be that they think more profit can be made by sticking to general holidays.

Have they got the future view of the holiday market correct? We’ll only find out in a few years or so.

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