Tui, the travel giant, has set its sights on a profit margin of over 3% for its markets and airline unit in the medium term, as it embarks on ambitious plans for growth. In a recent announcement made on Tuesday, March 25, 2025, during its capital markets day held in Madrid, Tui reiterated its projections for an operating profit increase of 7% -10% year-on-year from nearly €1.3 billion last year. The forecasted upturn is primarily driven by expectations surrounding summer 2025, buoyed by a €30 million phasing effect from the Easter holidays moving to the third quarter.
According to CEO Sebastian Ebel, the company's growth strategy includes diversifying its revenue streams, particularly in its airline division. Ebel stated, "The goal is to strengthen the synergies between the various business areas, offer customers more products and significantly increase the number of customer contacts throughout the year." This focus on enhancing customer engagement is a pivotal part of Tui's wider strategic vision.
Part of this vision lies in the potential renewal of Tui's Marella cruise ship fleet. Ebel mentioned that the company is currently in discussions regarding building two new vessels tailored specifically for the UK market, with an availability target set for 2031. "Against the background of an ageing Marella Cruises fleet, we are currently exploring future growth options on how to position our highly profitable UK market-leading business in a steadily growing market," he added.
The planned new builds, expected to be customized for the UK market, reflect Tui's commitment to maintaining its leadership in a competitive sector. This strategic move will not only modernize the fleet but also cater specifically to the tastes and preferences of UK customers.
Ebel's comments indicate a forward-looking stance as Tui seeks to leverage its existing strengths while adapting to the demands of a changing market landscape. The discussions with shipyards represent a proactive step toward ensuring that Tui remains relevant and competitive amid evolving consumer preferences.
As part of its broader strategy, Tui is also keen on selling more seat-only flights, tapping into new business-to-business opportunities. By expanding its offerings, the company aims to maximize its market presence and boost profitability.
Securing new builds and enhancing operational efficiency are not just isolated goals. They are intertwined with Tui's overall business strategy, which encompasses the aspiration to raise the number of customer contacts throughout the year. This multidimensional approach is likely to facilitate greater brand loyalty and a stronger market footprint.
With increased operational profit expectations, Tui is navigating a competitive landscape with adaptability at its core. The leadership team remains committed to understanding and predicting customer needs, responding with timely enhancements to their product offerings.
The developments regarding the Marella cruise fleet, combined with aggressive growth strategies across all business divisions, illustrate Tui's intent to modernize and enhance its operational effectiveness. Customers can look forward to a rejuvenated Marella experience that aligns with contemporary tastes, while investors can expect positive trajectories in the company's profitability.
In conclusion, Tui is on a pathway to profitability, with plans that reflect careful consideration of market demands and customer preferences. As the company moves forward, its dual focus on revitalizing its cruise fleet and expanding airline operations underscores a commitment to securing a favorable position in the travel industry.
