TUI Group
Services | Travel agencies |
---|---|
Revenue | €20,665.9 million (2023)[1] |
€997.2 million (2023)[1] | |
€455.7 million (2023)[1] | |
Number of employees | 58,342 (2023)[1] |
Website | tuigroup.com |
TUI Group is a German leisure, travel and tourism company; it is the largest such company in the world.[2][3] TUI is an acronym for Touristik Union International ("Tourism Union International"). TUI AG was known as Preussag AG until 1997 when the company changed its activities from mining to tourism. It is headquartered in Hanover, Germany.[4]
It fully or partially owns several
It is trading as TUI AG jointly listed on the Frankfurt Stock Exchange and the London Stock Exchange as a constituent of the FTSE 250 Index.
History
The origins of the company lie in the industrial and transportation company
After the sale of
TUI announced a merger of its travel division with the British tour operator
In April 2008,
Its logistics activities, concentrated in the shipping sector, were kept separate and bundled within Hapag-Lloyd AG. A majority stake in Hapag-Lloyd was sold to the Albert Ballin consortium of investors in March 2009[16] and a further stake was sold to Ballin in February 2012, as TUI worked to exit from the shipping business and to optimize its tourism business with expansion in Russia, China and India under Michael Frenzel.[15][17] Prior to August 2010, John Fredriksen held the largest Norwegian privately held stake in TUI Travel and had a significant influence upon TUI Travel's direction and strategy.[18] As Alexey Mordashov through his S-Group Travel Holding increased his stake in TUI Travel to a stake larger than Fredriksen's stake, the shipping business had to be sold.[18]
In June 2014 the company announced it would fully merge with TUI Travel to create a united group with a value of $US9.7 billion.[19] The merger was completed on 17 December 2014 and the combined business began trading on the Frankfurt and London stock exchanges.[20] Prior to this merger, Alexey Mordashov, the largest private shareholder in TUI Travel, held a blocking stake in TUI Travel through his S-Group.[21] After the merger, Alexey Mordashov's stake was reduced to less than a blocking stake of 25%.[21]
On 12 December 2016, Alexey Mordashov increased his stake in TUI Group from 18% to more than 20%.[21][22] In October 2018, his 24.9% stake was the largest privately held stake in TUI Group.[23] In June 2019 Mordashov transferred 65% of his stake to the KN-Holding, owned by his sons Kirill Mordashov and Nikita Mordashov. TUI says in a statement that they ”welcome the second generation of the family amongst its shareholders”.[24]
Berge & Meer and Boomerang Reisen as well as Atraveo were sold to the holding company GENUI in 2019.[25]
At the end of 2019, the holiday home provider Wolters Reisen GmbH and the round trip specialist Wolters Rundreisen GmbH, of which TUI Group owned 100% of the shares via an investment company, were sold to the Frankfurt-based company e-domizil.[26]
In August 2020, the company reported a net loss of €2.3 billion (from October 2019 to June 2020) as a result of the COVID-19 pandemic. Out of the sum, €1.5 billion loss related to the period from April to June 2020, while the revenue for the same period was €75 million, 98% less than the same period in 2019. TUI's chief executive officer, Fritz Joussen announced that the firm was considering selling the Marella cruise line.[27]
In March 2022, the company's largest single shareholder, Alexey Mordashov, a Russian oligarch and confidante of
In March 2023 it was announced that TUI would seek to raise $1.8 billion by selling shares at a discount to existing investors, excluding Mordashov as a result of sanctions under German securities law.[32][33]
Governance
The following people have served in key roles:
Time period | Chief Executive Officer (CEO) | Time period | Chairman of the Supervisory Board |
---|---|---|---|
2022- | Sebastian Ebel | 2019- | Dieter Zetsche[34] |
2013-2022 | Friedrich Joussen | 2011-2019 | Klaus Mangold[34] |
2014-2016 | Peter Long (Co-CEO)[35] | 2010-2011 | Dietmar Kuhnt[36] |
2004-2010 | Jürgen Krumnow[36] |
The company's shares are listed on the Frankfurt Stock Exchange, the London Stock Exchange, as well as the Hanover Stock Exchange.[37]
In spring 2007, the Norwegian shipowner and financial investor John Fredriksen acquired a 15.01% stake in TUI. At TUI's AGM in May 2008, Fredriksen demanded a split-up of the group and the dismissal of TUI CEO Michael Frenzel.[38] At the AGM on 13 May 2009, Fredriksen demanded that Supervisory Board Chairman Jürgen Krumnow be voted out of office so that he could then join the Supervisory Board himself. However, these attempts were unsuccessful.[39] On 28 February 2014, Monteray Enterprises Ltd (John Fredriksen) notified TUI that its share of voting rights in TUI had fallen below the 3% thresholds on 24 February 2014.[40]
Russian oligarch Alexey Mordashov joined TUI at the beginning of 2008. By July 2008, he had increased his stake to 15.03% and in March 2012 to 25.29%, and later to 34%.[41] He was thus the largest single shareholder.[42] Alexey Mordashov has been on the EU sanctions list since 28 February 2022 and, according to a corresponding voting rights notification, transferred control of most of his indirectly held shares to the Virgin Islands-based company Ondero Limited, controlled by Marina Mordashova, on that date. Due to an investigation by the Federal Ministry of Economics and Climate Protection regarding the transfer of the shares to Ondero Limited, the transfer is suspended.[43] The shareholding in TUI AG therefore continues to be held (indirectly) by Alexey Mordashov. Due to the capital increase in spring 2023, in which Alexey Mordashov was not allowed to participate due to his sanction,[44] his shareholding has meanwhile decreased significantly. According to the voting rights notifications of the German Federal Financial Supervisory Authority of 16 May 2023, 10.87% shares in TUI AG have been indirectly attributable to Alexey Mordashov since 19 April 2023, while Marina Mordashowa holds 0% in TUI AG.[45]
Shareholder | Share |
---|---|
Institutional investors | 57.8 % |
Alexei Mordaschow | 10.9 % |
Private investors | 30.2 % |
RIU S.A. (Familie Riu Güell) | 1.1 % |
Group structure
TUI Hotels & Resorts
In the 2022 financial year, the Hotels & Resorts segment comprised a total of 353 hotels with 275,144 beds. With 322 properties, the majority are four- or five-star hotels. 53% were operated under management contracts, 38% were owned by the respective hotel company, 8% were leased and 1% of the facilities were operated under franchise agreements. In addition, 65 hotels were operated by third-party hoteliers under TUI's international concept brands as at 30 September 2022, bringing the total number including third-party hotels to 418.[1]
Cruises
TUI's cruise segment operates a total of 16 cruise ships under three brands:
- TUI Cruises is a joint venture with Royal Caribbean Cruises. The fleet currently comprises six ships named Mein Schiff 1 to 6.[46]
- Hapag-Lloyd Cruises is responsible for luxury and expedition cruises in German-speaking countries. The brand was transferred to TUI Cruises in 2020.[47][48] With the MS Europa and the MS Europa 2, the group offers luxury cruises; the two ships were the only cruise ships worldwide to be awarded the 5-star-plus category by the Berlitz Cruise Guide. HEANSEATIC class expedition ships include the HANSEATIC nature, the HANSEATIC inspiration and the HANSEATIC spirit.[49]
- Marella Cruises offers cruises with four ships, primarily in the UK market.[46]
TUI Multinational Airlines
TUI owns several airlines operating under the brands TUI fly and TUI Airlines. They are managed by TUI Airline Management.
Airline | Country | Description |
---|---|---|
TUI Airways | Ireland United Kingdom |
TUI Airways is the largest of the TUI airlines. It has 70 aircraft and flies from 26 British airports to 109 destinations worldwide. It was formed by the merger of Air 2000 ). The airline was the last TUI airline to be rebranded.
|
TUI fly Belgium | Belgium | TUI fly Belgium has operated since March 2004 to more than 105 destinations around Europe, the Red Sea, Caribbean, Canary Islands, US and Africa. Since 2012 it has operated scheduled flights as well as charter services. It was formerly known as Jetairfly, rebranded to TUI fly Belgium in late 2016. |
TUI fly Deutschland | Germany | TUI fly Deutschland has operated since 1972, under the name Hapag-Lloyd Flug, and rebranded to TUIfly in 2007. It has yet again rebranded as TUI fly Deutschland. It has 40 aircraft, flying to 39 destinations. |
TUI fly Netherlands | Netherlands | Since 2005, TUI fly Netherlands has operated charter flights from Amsterdam Schiphol Airport to destinations in Southern Europe, North Africa, the Caribbean, and Latin America. It was formerly known as Arkefly, rebranded to Arke in 2013, and rebranded again to its current name in 2015. |
TUI fly Nordic | Denmark Finland Norway Sweden |
TUI fly Nordic flies from Sweden, Denmark, Finland, and Norway. They fly holidaymakers travelling with the following tour operators; TUI Sverige (Sweden), TUI Finland (Finland), TUI Norge (Norway), and TUI Danmark (Denmark). There was a slight name change, from TUIfly Nordic to TUI fly Nordic. |
As of April 2024[update], TUI Group operates the following aircraft:[50]
Aircraft | In Service | Orders | Passengers | Notes | ||
---|---|---|---|---|---|---|
P | E | Total | ||||
Boeing 737-700
|
4 | — | — | 148 | 148 | To be phased out by 2027.[51] |
Boeing 737-800
|
55 | 1 | — | 189 | 189 | |
Boeing 737 MAX 8
|
39 | 17[52] | – | 189 | 189 | |
Boeing 737 MAX 10
|
— | 18[53] | TBA | |||
Boeing 767-300ER
|
1 | — | — | 328 | 328 | Set to be phased out by 2025.[54] |
Boeing 787-8
|
13 | — | 25 | 280 | 305 | |
47 | 253 | 300 | ||||
— | 325 | 325 | ||||
Boeing 787-9
|
6 | — | 63 | 282 | 345 | |
Embraer E195-E2
|
3 | — | — | 136 | 136 | |
Total | 121 | 36 |
Corporate affairs
The key indicators of the TUI Group are (as at the financial year ending 30 September):[55][56]
Year | Revenue (€bn) | Net Profit (€m) | Number of employees |
---|---|---|---|
2016 | 17.1 | 910 | 66,779 |
2017 | 18.5 | 645 | 66,577 |
2018 | 19.5 | 733 | 69,546 |
2019 | 18.9 | 416 | 71,473 |
2020 | 7.9 | –3,148 | 48,330 |
2021 | 4.7 | –2,467 | 50,584 |
2022 | 16.5 | –277 | 61,091 |
2023 | 20.6 | 306 | 65,413 |
Controversies
On 16 April 2009, TUI Travel and S-Group Travel Holding of the Russian shareholder Mordashov declared the formation of a joint venture in Russia with investments of 30 million euros to develop tourism activities in Russia and Ukraine. The intention was to take over the tour operators VKO Group and Mostravel in Russia and Voyage Kiev in Ukraine, which had over 160 travel agencies and over half a million customers.[57] In March 2022, TUI AG terminated the brand use agreement with TUI Russia; TUI Russia is no longer a TUI Group company. The last shares in TUI Russia were sold in 2021.[58]
A 2018 study in the UK found that Tui had the largest gender pay gap reported to date by a major UK company, with its male employees paid more than twice what female employees are paid.[59]
In August 2018, some air passengers questioned the distribution of gendered stickers to children on a flight: "future pilot" for boys, "future cabin crew" for girls.[60]
TUI has become the main airline carrying out charter deportation flights for the UK Home Office.[61] It is estimated that in November and December 2020 TUI carried out the deportation of more than 150 people in 13 flights to 23 destinations for the Home Office.[62]
On 20 May 2022, the German TV Programme ZDF-Magazin Royale dedicated an episode to the history of TUI. It reported that Preussag was active in World War II producing bombs for the Nazi Party. Later Preussag also provided chemicals to Saddam Hussein's in Iraq, so facilitating the development of chemical weapons.[63][64] The company were also supportive of the regime of Muammar Gaddafi in Libya and helped to build a factory for the production of chemical bombs.[63] The management responded to a request for information, by saying that they were not aware of the company's history.[65]
In May 2022, it was reported that the Russian oligarch Alexei Mordashov had made a transfer of a holding of 29.9% of the company: TUI failed to follow the rules and verify the new owner of the shares. In addition, the transfer was a violation of the sanctions against Russia by the European Union, which sanctioned Mordashov personally.[65][66]
See also
References
- ^ a b c d e f "Annual Report 2023" (PDF). TUI. Retrieved 13 February 2024.
- ^ TUI forges World's biggest tourism operator. TUI AG. Retrieved on 29 October 2014.
- ^ "Die 10 Grossten Reiseveranstalter der welt". Ten of the Day. Retrieved 15 December 2023.
- ^ "Contact TUI Group." TUI AG. Retrieved on 29 May 2009.
- ^ "About TUI Group". www.tuigroup.com. Retrieved 2023-10-10.
- ^ "History". Preussen Elektra. Retrieved 14 April 2017.
- ^ "WESTDEUTSCHE LANDESBANK / CARLSON / THOMAS COOK (Merger) [1999] ECComm 26 (8 March 1999)". www.worldlii.org. Retrieved 2015-12-02.
- ^ "German firm buys Thomas Cook". BBC. 7 December 2000. Retrieved 14 April 2017.
- ^ Leadbeater, Chris (18 October 2017). "Goodbye Thomson, hello TUI – how Germany beat Britain in the battle of the sunlounge". The Telegraph. Archived from the original on 2022-01-12. Retrieved 11 March 2019.
- ^ "First Choice to tie up with TUI". BBC News. 19 March 2007. Retrieved 24 June 2013.
- ^ "First Choice-TUI merger cleared". BBC News. 4 June 2007. Retrieved 24 June 2013.
- ^ "Thomson and First Choice to merge". The Guardian. 19 March 2007.
- ^ "TUI gründet mit Mordaschow Reisetochter in Russland Touristikkonzern und Oligarch vertiefen Partnerschaft" [TUI establishes a subsidiary in Russia with Mordashov. Touristkonzern and Oligarch deepen partnership.]. Financial Times Deutschland (in German). 11 April 2008. Retrieved 22 October 2018.
- ^ Heitmann, Jens (30 August 2010). "Alexej Mordaschow baut Einfluss bei TUI aus" [Alexei Mordashov is extending his influence at TUI]. Göttinger Tageblatt (in German). Retrieved 22 October 2018.
- ^ a b "Russischer Investor baut Einfluss bei TUI aus" [Russian investor is extending his influence at TUI]. Der Spiegel (in German). 31 January 2011. Retrieved 22 October 2018.
- ^ Kuehnen, Eva (23 March 2009). "TUI AG completes sale of Hapag-Lloyd unit". Reuters. Retrieved 8 August 2010.
- ^ "TUI AG set to agree Hapag-Lloyd deal this week". Chicago Tribune. 12 February 2012.[permanent dead link]
- ^ a b Wnuck, Corinna (30 August 2010). "Tui-Großaktionär stockt Anteil auf" [Tui major shareholder increases stake]. Finance (in German). Retrieved 22 October 2018.
- ^ "Tui Travel agrees to merger with German majority stakeholder". International Travel News. Archived from the original on 2014-10-06. Retrieved 17 December 2014.
- ^ Young, Sarah (17 December 2014). "TUI Travel, TUI AG merger completes". Reuters. Retrieved 17 December 2014.
- ^ a b c "Roundup: Tui-Großaktionär Mordaschow nähert sich der Sperrminorität" [Roundup: Tui major shareholder Mordashov approaches the blocking minority]. Bild (in German). 1 September 2017. Retrieved 22 October 2018.
- ^ "Алексей Мордашов приблизил свою долю в TUI к блокирующему пакету" [Alexey Mordashov brought his stake in TUI closer to the blocking stake]. RBC (in Russian). 10 January 2017. Retrieved 22 October 2018.
- ^ "Shareholder structure". TUI Group. Retrieved 22 October 2018.
- ^ "Change in the shareholder structure of TUI AG". www.tuigroup.com. Retrieved 2019-12-05.
- ^ "TUI Group to sell German specialist tour operators "Berge & Meer" and "Boomerang Reisen" / Group sharpens its profile". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "TUI Group sells German holiday home provider Wolters Reisen". www.tuigroup.com. Retrieved 2023-10-02.
- ^ Hancock, Alice (13 August 2020). "Tour operator Tui considers disposals after racking up €2.3bn loss". Financial Times. Retrieved 13 August 2020.
- ^ "Alexei Mordashov: Russia's richest man is now an EU sanctions target". The Guardian. 2022-03-02. Retrieved 2022-03-05.
- ^ Welle, Deutsche. "The Russian oligarchs of the FinCEN Files | DW | 26.09.2020". DW.COM. Retrieved 2022-03-05.
- OCCRP (in Russian). Archived from the original on 17 November 2023. Retrieved 16 November 2023.
{{cite news}}
: CS1 maint: multiple names: authors list (link) Alternate archive - Радио Свобода (in Russian). Archived from the original on 17 November 2023. Retrieved 16 November 2023.
{{cite news}}
: CS1 maint: multiple names: authors list (link) Alternate archive - ^ "TUI open to new majority shareholder following resignation of sanctioned Russian billionaire". City A.M. 2023-03-24. Retrieved 2023-08-15.
- ^ "TUI launches €1.8bn share sale, but Russian owner is banned". Travel Gossip. 2023-03-24. Retrieved 2023-08-15.
- ^ a b "Dr Dieter Zetsche to succeed Professor Klaus Mangold as Chairman of the Supervisory Board of TUI AG in 2018". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "Change at the helm of TUI Group: Fritz Joussen becomes sole CEO of TUI Group / Peter Long, Joint CEO up to the AGM, becomes Supervisory Board member". www.tuigroup.com. Retrieved 2023-10-02.
- ^ a b "EANS-Adhoc: TUI AG / Change at the helm of the Supervisory Board". presseportal.de (in German). 2009-10-28. Retrieved 2023-10-02.
- ^ "TUI Group listed in the Open Market of the Frankfurt Stock Exchange as of 1 April". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "TUI shares soar on breakup news". Reuters. 2008-03-14. Retrieved 2023-10-02.
- ^ "Activist investor fails to oust Tui chairman | Financial Times". www.ft.com. Retrieved 2023-10-02.
- ^ "Financial Statements TUI AG" (PDF). tuigroup.com.
- ^ "TUI AG has been informed about changes in ownership of shareholder Unifirm Limited / Change in TUI's shareholder structure". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "TUI Group's Largest Shareholder Hit With European Union Sanctions". Yahoo Finance. 2022-03-01. Retrieved 2023-10-02.
- ^ "TUI AG receives information about the owner of its shareholder Unifirm". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "Capital Increase". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "Shareholder structure". www.tuigroup.com. Retrieved 2023-10-02.
- ^ a b "Our business". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "TUI Group: Sale of Hapag-Lloyd Cruises to TUI Cruises completed". www.tuigroup.com. Retrieved 2023-10-02.
- ^ "Imprint - Hapag-Lloyd Cruises". www.hl-cruises.com. Retrieved 2023-10-02.
- ^ "Our Ships - Hapag-Lloyd Cruises". www.hl-cruises.com. Retrieved 2023-10-02.
- ^ "TUI Group Fleet". Planespotters.net. Retrieved 17 July 2023.
- ^ "TUI Group set to end B737-700 ops by 2027". ch-aviation. Retrieved 2024-04-13.
- ^ "TUI fly krijgt naast B737 MAX8 ook vier MAX10's in de vloot (Dutch)". flightlevel.be. 21 November 2017. Retrieved 21 November 2017.
- ^ "TUI fly krijgt naast B737 MAX8 ook vier MAX10's in de vloot". flightlevel.be. 21 November 2017. Retrieved 21 November 2017.
- ^ Cathy, Buyck. "TUI Trains Eye on Transition to Boeing 737 Max and 787 Fleets | AIN". Aviation International News. Retrieved 2024-03-02.
- ^ "All TUI Annual Reports". www.tuigroup.com. Retrieved 18 February 2023.
- ^ "TUI Fundamentalanalyse | KGV | Kennzahlen". boerse.de (in German). Retrieved 2024-03-02.
- ^ "TUI Travel launches Russian joint venture". www.travelweekly.com. Retrieved 2023-10-02.
- ^ "TUI terminates agreement: TUI brand name may no longer be used by TUI Russia". www.tuigroup.com. Retrieved 2023-10-02.
- ^ Butler, Sarah; Barr, Caelainn (16 February 2018). "Tui's male employees paid more than double female staff – report". The Guardian. Retrieved 22 January 2019 – via www.theguardian.com.
- ^ Khomami, Nadia (22 August 2018). "'Sexist' Tui Airways crew gave different badges to girls and boys". The Guardian. Retrieved 22 January 2019 – via www.theguardian.com.
- ^ "The two sides of TUI: crisis-hit holiday giant turned deportation specialist – Corporate Watch". corporatewatch.org. 27 January 2021.
- ^ "The Home Office deportation drive against Channel-crossing migrants: a balance sheet – Corporate Watch". corporatewatch.org. 29 April 2021.
- ^ S2CID 145705967.
- JSTOR 25164729.
- ^ a b "ZDF Magazin Royale vom 20. Mai 2022". www.zdf.de (in German). Retrieved 2022-05-20.
- ^ Ltd, Jacobs Media Group. "Scrutiny grows on Mordashov Tui stake". Travel Weekly. Retrieved 2022-05-20.