The business environment of TUI: A case study

Thèmes abordés

TUI environment opportunity threat strategy scenario

Résumé du document

The History of TUI is atypical. Since the mid-1990, TUI has reinvented itself. Historically, Preussag was a German company of smelting and mining industry
(Viarlot, 2007 and TUI, 2010a). However, the profitability of this sector decreased and the competition from the emergent country started to be strong (Viarlot). In 1997, Preussag acquired Hapag Lloyd AG, a German company in transport and tourism
(TUIa). The company moved its scope to the service industry. It becomes a European tourism leader with major merges: the English Thomson Travel Group
(2001), the French Nouvelles Frontières (2002) (TUI)... In 2002, the company was renamed “TUI AG” (Viarlot and TUI). At the same time, TUI sold its last industrial subsidiaries to develop its tourist offer (e.g.: Preussag Energie to Gaz de France in
2002) (TUI).

2) Type of Organisation:
TUI AG is an “Aktiengesellschaft” (AG); this German term is similar to the English PLC (Worthington and Britton, 2003). However, the AG needs two boards of
directors: the supervisory board (Chairman: Dietmar Kuhntand) and the managing board (Chairman: Michael Frenzel) (TUI, 2010b and Worthington and Britton).

3) Scope:
TUI AG is divided in three major subsidiaries (TUI, 2010c). TUI Travel PLC is a tour operator, it offer packaged and pre-planned holidays (Viarlot and TUI). Thomson and Nouvelles Frontières some brands of the tour wholesaler (TUI). TUI Hotels and Resorts offers Holiday room. Groupotel, Robinson are also brands of TUI. Finally, TUI Cruises provides luxury cruises. This joint venture between TUI and Royal Caribbean Cruises has existed since 2008. The major Market of TUI AG is Europe (TUI).

Extraits

[...] (2006) ‘Tomorrow's: world, consumer and tourist', Journal of Vacation Marketing 174–190. Wearing S. & Neil J (2003). Ecotourism: impacts, potentials and possibilities? Oxford: Butterworth-Heinemann World and Travel Tourism Council (2010) Economic impact data and forecasts, Retrieved December from http://www.wttc.org/eng/Tourism_Research/Economic_Research/ Worthington I. & Britton C. (2003). [...]

[...] The purpose of scenario is also training managers. Indeed, according Skapinker (2001), they become more creative, they react faster face to problems and keep questioning in mind. It's different than concept than Total Quality Management. A scenario does not only aim at offering the best product but jumping on opportunities (Skapinker). A scenario of TUI: The time period of the following scenario TUI is short; it refers to the two next years. It aims at analysing eventual events in order to enable TUI to keep its European leadership. [...]

[...] Ecotourism grows faster than tourism as a whole. TUI claim to adopt a sustainable approach. The customer does not only look for rest, he wants to live experiences. Ecotourism refers to committed customers. Sociologically and ecologically, it aims at involving the tourist in a beneficial adventure between him and the hostel country. Furthermore, according Wilson & Purushothaman (2003), BRICs (Brazil, Russia, India, and China) are important growing market. TUI invests in three of them. The growth of tourism is higher than in developed countries. [...]

[...] Thus, companies might think handle their environment, their expert can make mistakes (Heinzel). Finally, even if forecasts are verified, a slow decision making can reduce their implications (Heinzel). The efficiency of scenario planning comes from its development method. Shoemaker highlights ten stages to construct it. The four first steps follow the plan of the report (Scope, stakeholders, key issues and challenges). Then, the main uncertainties allow writing scenarios. Shoemaker suggests three ways to check them. Firstly, scenario's hypothesis has to be linked to a time period. [...]

[...] In 2002, the company was renamed (Viarlot and TUI). At the same time, TUI sold its last industrial subsidiaries to develop its tourist offer (e.g.: Preussag Energie to Gaz de France in 2002) (TUI). Type of Organisation: TUI AG is an “Aktiengesellschaft” this German term is similar to the English PLC (Worthington and Britton, 2003). However, the AG needs two boards of directors: the supervisory board (Chairman: Dietmar Kuhntand) and the managing board (Chairman: Michael Frenzel) (TUI, 2010b and Worthington and Britton). [...]