Business Decision-Making: TUI Travel Group Sales and Profit Analysis

This presentation provides an analysis of TUI Travel Group's sales and profit over the last decade. It includes graphs and trends, highlighting the factors affecting their performance. The presentation also includes projections for future sales and profit.

Business decision-making

TUI Travel Group
• It is a multinational tour operator
which design luxurious tours for
providing the best leisure services,
accommodation, hotels, airlines,
cruises & others for giving the best
holiday experience to the visitors.
• It has gained a strong brand
popularity in the market by
delivering the exceptional quality
offerings to the visitors.

TUI Travel’s sales and profit over last decade
Educati onal quality
Year Revenue (In Euro Mil) Profit (In Euro Mil)
2007 20514 -890
2008 21865 236
2009 18631 -142
2010 16350 101
2011 17480 23
2012 18330 -15
2013 18478 -11
2014 18715 105
2015 17516 340

Column graph
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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0
5000
10000
15000
20000
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TUI's sales and profitability
Revenue (In Euro Mil) Profit (In Euro Mil)
Year
Amount (In Euro million)

Bar graph
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
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TUI's sales and profit
Profit (In Euro Mil) Revenue (In Euro Mil)
Amount (In Euro million)
Year

Line graph
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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0
5000
10000
15000
20000
25000
TUI's sales and proffitability
Revenue (In Euro Mil) Profit (In Euro Mil) Year
Year
Amount (In Euro million)

Contd.
• Looking to the constructed graphs, it can be seen that in 2008, TUI’s sales revenues goes up by YOY growth of 6.59% to
21,865 Euro million. However, thereafter, it shows a declined trend because in 2009 & 2010, the income has resulted down
by 14.79% and 12.24% and came to 18,631 and 16,350 Euro million.
• Declined trend in the consumer demands, tough level of competition, and availability of tour packages at discounted prices,
price sensitive visitors etc. may be the several reasons behind declined sales revenues. However, after this, TUI witnessed
positive growth at a YOY growth by 6.91%, 4.86%, 0.81% and 1.28% respectively.
• In past 2 year, it came down to 17516 and 17184 Euro million by 6.41% and 1.90% due to tough competitive rivalries and
changes in the visitors tour choices. However, on the other side, profit figures shows a continuous volatile trend because in
2009, TUI’s operation reported loss of 142 Euro million and then in next year, it reported favorable profit of 101 Euro
million and after continuously decreased till 2013 and came to 11 Euro million. In the ending two year, it had spotted
positive performance at profit has been reported to 340 & 1037 Euro million respectively.

Trend line
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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f(x) = − 319.751515151515 x + 20264.9333333333
R² = 0.353889394298006
f(x) = 114.739393939394 x − 552.666666666667
R² = 0.537800677725505
TUI's sales and profitability
Revenue (In Euro Mil) Linear (Revenue (In Euro Mil))
Profit (In Euro Mil) Linear (Profit (In Euro Mil))

Findings and analysis
• Looking to the above graph, it can be seen that sales trend line present downward trend
which projected for the sales performance to be decline in the near future. It is because,
historical trend performance of the TUI Group indicates up and downs, as a result, the
projection also founded to be decrease in the sales for the upcoming period.
Y = -319.75x+20265
2017 = 319.75(11) + 20265 = 16,747.75
2018 = -319.75(12) + 20265 = 16,428

Trend line
• Similarly, profit is also expected to be drop down in the future from
the current level of net earnings, it has been forecasted below:
Y = 114.74x – 552.67
2017 = 114.74(11) – 552.67 = 709.47
2018 = 114.74(12) – 552.67 = 824.21

REFERENCES
• Pettigrew, A.M., 2014. The politics of organizational decision-making.
Routledge.
• Solomon, M.R., 2014. Consumer behavior: Buying, having, and
being. Engelwood Cliffs, NJ: Prentice Hall.

Thank You!