Tui, the biggest travel group in Europe, is turning its attention toward budget travel – the cheaper holiday packages that have become increasingly popular.
Sebastian Ebel, Tui’s board chief, told “Handelsblatt” that the company is currently examining the budget‑travel market segment. He emphasized that while Tui is a market leader in premium travel, they also aim to become an attractive choice in the lower‑price range and to win more customers. “Right now we hold only about ten to fifteen percent market share in that segment” he said.
The group’s growth prospects in high‑end offerings are limited in saturated markets such as Germany. “It’s normal for management to look for new growth areas, especially where the company still has low market shares” Ebel added.
Tui already owns two budget brands – Ltur and First Choice – and plans to leverage their experience and technology to better reach this customer group. “We are actively working on how to engage this segment even more effectively” he said.
Finally, Ebel stressed that the expansion into budget travel will not come at the expense of profitability. “We keep a close eye on margins and ensure that growth is profitable” he confirmed.
