Tui Travel Analysis
The main objective of the paper is to critically analyse the operational activities in travel and for that reason the chosen company is Tui Travel. The paper will explain the operational activities of Tui Travel. Tui Travel is basically a British travelling group that was started in 2007. Tui Travel has now merged with TUI AG in order to become TUI group. This group is a company of opportunities for the customers, employees, and shareholders. Since the company is under one roof, all the companies like unique hotel portfolio, cruise lines, airlines, distribution strength of tour operations that go on through online and through other travel agencies in all over the Europe. Now the company is functioned in 180 states of the world and also claimed
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Group has gone to get 248.4 million pounds in operating profit before tax 2006, to 249.3 million pounds, representing an increase of 5% in the same fiscal year. With these data, TUI Travel continues to be the European leader in turnover and operating profit (Spasić, 2012). As for the division of UK and Ireland, operating profit fell by 31% from the 113.8 million made in 2006 to 78.2 million pounds. Thomson contributed to these losses at 27 million pounds due to the strong competition in the airline business and the bad results obtained with some routes that were not profitable. Other key factors in the loss Profitability in the British division have been the sharp increase in oil prices and the government's decision to double the tax on passengers traveling by plane, the APD (Air Passenger Duty) (Bhatia, …show more content…
The Big 4 includes Airtours, TUI, Thomas Cook and Crystal Holidays. One of the basic objectives of travel and tourism business is to move along with greater incorporation. It happens when companies join hands together in terms of mergers and takeovers in order to operate greater functions. There are some bigger companies as well that fulfil economies of scale, which is based on expenses or costs that lower and that can earn profit. Moreover, vertical integration is when organisations integrate various levels of distribution chain. However, when tour operators buy travel agency, it is recognised as forward vertical integration. Moreover, a tour operator obtains an airline, which is recognised as backward vertical integration (Ball et al.,
Group has gone to get 248.4 million pounds in operating profit before tax 2006, to 249.3 million pounds, representing an increase of 5% in the same fiscal year. With these data, TUI Travel continues to be the European leader in turnover and operating profit (Spasić, 2012). As for the division of UK and Ireland, operating profit fell by 31% from the 113.8 million made in 2006 to 78.2 million pounds. Thomson contributed to these losses at 27 million pounds due to the strong competition in the airline business and the bad results obtained with some routes that were not profitable. Other key factors in the loss Profitability in the British division have been the sharp increase in oil prices and the government's decision to double the tax on passengers traveling by plane, the APD (Air Passenger Duty) (Bhatia, …show more content…
The Big 4 includes Airtours, TUI, Thomas Cook and Crystal Holidays. One of the basic objectives of travel and tourism business is to move along with greater incorporation. It happens when companies join hands together in terms of mergers and takeovers in order to operate greater functions. There are some bigger companies as well that fulfil economies of scale, which is based on expenses or costs that lower and that can earn profit. Moreover, vertical integration is when organisations integrate various levels of distribution chain. However, when tour operators buy travel agency, it is recognised as forward vertical integration. Moreover, a tour operator obtains an airline, which is recognised as backward vertical integration (Ball et al.,