TUI Group Internal Environment: Impact of Covid and UK Government Recovery Plan

This case study explains the TUI group internal environment, the impact of Covid pandemic, and the UK government recovery plan. It also covers the STEEPLE factors affecting TUI's operations.

Business environment

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section 1...........................................................................................................................................3
Summary......................................................................................................................................3
Section 2...........................................................................................................................................6
The impact of the covid pandemic on TUI group and its internal environment..........................6
The impact of the UK government's recovery plan on the TUI group's internal environment....6
Section 3 ..........................................................................................................................................7
The impacts of the UK government recovery plan on TUI group's micro environment.............7
The impact of the UK government's recovery plan on TUI group's internal environment.........7
Section 4 ..........................................................................................................................................8
The impacts of STEEPLE factor on TUI groups operations.......................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is mainly defined as the process which aims in explaining the sum
of the internal and external forces which is impacting the business and its operation for achieving
the business objectives. The aim of this case study is to explain about the TUI group internal
environment. This case study helps in explaining about the internal business environment, macro
business environment. The overview of the business and the impacts of the UK government
recovery plan on the TUI groups micro environment. Lastly explaining about the STEEPLE
factors on the TU group. Internal business environments is the process which explains about
internal activities which impacts the decision-making, activities and the business operations.
Further micro business environment mainly defines and is directly linked with the firms
performance. It mainly includes the customers, suppliers, competitors. This environment is
directly in contact with the business activities. Also the macro business environment is mainly
defining as the external forces as the political, economical, social, technical legal forces which
impacts the business operations and its decisions making processes. The TUI is the group which
is mainly working and providing wide facilities with offering wide range of high standards hotel
services with managing the quality and establishing the global responsibility for attaining
sustainability.
MAIN BODY
Section 1
Summary
Business overview
TUI is the travel company which is mainly operating by arranging the travelling services
by arranging holiday and providing high standard experiences. This group is mainly engaged in
providing the tour, hotel, resort and the cruise services at various regions (Shonia and et.al.,
2022). The integrated offering by this group is mainly serving the services to match the customer
with providing unmatched holiday experiences in the 179 regions. This group is mainly serving
with providing the services as for assuring the best personal experiences with hand-picked hotels,
tailor made experiences and providing the best holiday airline with better holidays experiences.
Size
TUI is the public limited company which is mainly reconsigned as the multinational
travel and tourism group organising wide leisure, travel and tourism services for the customers.

The groups has more than 400 hotels, resorts, serving cruises and clubs. The size of the groups is
mainly around 214000 beds in the 24 countries. The company earned the annual revenues around
the 1.9 billion pounds in the year 2020. The workforce Working in the group is approximately
50,584. As travel and tourism sector mainly accounts for the 10% of the total GDP in the UK.
Sector and industry of operation
The TUI is the public limited company which is mainly recognised as for providing the
travel, tourism services of large number of consumers. The company is operating over 180
countries and accounts for more than 30 million users (Blinova and et.al., 2018). Further the
groups is mainly accounting and operating as the tourism business with providing the wide range
of travel and tourism services including the cruise ships, airlines and hotels, reports for the large
number of consumers.
Direct and indirect competitors
The groups is operating in the dynamic market with consisting of high competition level
(Sharma, Hassan and Mohanty eds., 2022). The top competitors of the company namely HIS,
cruise line, Norwegian cruise line holdings, transat, holiday break, sunwing dart group, sea link
travel group and the flight centre travel group.
Organizational structure and leadership team
The organisational structure of the company is mainly comprising about the mixed
structures in which the employees of the company are of the multiple line which are reporting
more than one manager in the company and the leadership team of the TUI group is mainly
consisting of the executive board, the group of executive committee and the supervisory board.
This mainly account for th functional managers, including the marketing, human resource, IT
departments, director of strategy.

Source:(The TUI group, 2022)
Section 2
The impact of the covid pandemic on TUI group and its internal environment
The covid pandemic impacted the travel and tourism industry due to the covid pandemic
and due to crises the industry faced severe issue and the financial impacts in attaining the
revenues and profits for the firm. As due to the restrictions imposed by the government on the
travel and the UK preventing the spread of the disease results in reducing the travellers for
visiting and travelling among various countries (Gallego and et.al., 2022). The demand is
reduced of the travellers due to the covid pandemic, also the business turnover reduced and

which leads to stop of the business activities underlying the consumer demands. The company
mainly results in attaining loss due to the virus as around the 2 billion euros. With this the
company struggled due to this reason as of the restrictions on the tourism as leaving the hotel,
airlines and the cruises due to the series of the disease and virus among various individuals. Also
the company indicted for limiting and lowering the capacity for travelling from the airiness due
to pandemic fourth wave by impacting on the company operations and its profits earning
capacity. Further more this impact the company internal environment as for providing the
services and its impactors on the decision making by applying all the safety procedures due to
the restrictions by the government.
The impact of the UK government's recovery plan on the TUI group's internal environment
The tourism recovery plan mainly aims in defining about the limiting the impact of the
covid on the individuals. The government mainly introduced this pan as for rebuilding the
tourism sectors by emphasizing on the recovery strategy. In this plan mainly aim in defining
about all the guidelines as for keeping and performing the business safely and launching the
NHS test and the ONS infection survey. This helped in determining the outbreak of the viruses
and impacting the business and individuals with the preparing various individuals for the winter
and continuously lifting the restrictions. This impacts the company internal environment as by
taking the decision for maintaining the safety and security while providing travelling and airlines
services. It mainly impacts the decision-making of the company and its operations for achieving
growth by complying with the rule and regulations imposed by the government.
Section 3
The impacts of the UK government recovery plan on TUI group's micro environment
The plan introduced by the government mainly impact the company internal environment
as the decision making prices is impacted. The pan is mainly introduced for protecting the
livelihood and with supporting the travelling business and its citizens. This pan impact and
changes the CSR strategy and the adapting more flexible environment as for achieving growth
after the covid pandemic and recovering from the crises as soon as possible (Pavlatos, 2021).
This mainly induces the changes in the CSR strategy and adopting all the changing rules and
restrictions by the government which impacts the decision making capacity of the company
while operating in the changing environment. This give the positive impact by adopting the
strategy in the TUI group which limits the pollution, protecting the bio diversity and emphasising

and developing the community which is mainly supporting the employment level which helps in
building the avrnd reputation while operating and recovering from th covid pandemic with
establishing the business by complying all the government rules of the recovery plan helps in
contributing in the economy by generating more job opportunities for the unemployed
individuals.
The impact of the UK government's recovery plan on TUI group's internal environment
The UK government recovery plan is mainly emphasising on rebuilding the impacts
caused on the life and the individuals which are residing in th UK due to pandemic crises. This
plan mainly help in securing the travellers by providing the safety conditions guidelines and
monitoring the suppressing conditions of the outbreaks caused due to pandemic. The government
mainly launched the NHS testing and the surveys. This helps the company in maintaining the
safety conditions by measuring and reducing the travellers health conditions which are coming
and booking the packages this impacts the internal decisions of the company for taking the steps
towards adopting all the safety ensure for coordinating with the pandemic environment (Zhang
and et.al., 2021). Also this plan mainly helps the tourism sector to increases the revenues by
implementing the surpassing stage in the company as for reducing the impact of the pandemic
and limiting the infection which results in reducing the death. This limits the travelling and
reducing the capacity from the airlines of the company as of the passengers travelling to various
countries. Thus, the plan introduced by the government helps in overcoming and taking various
measures as to support the individuals and business which are impacted from covid pandemic.
Section 4
The impacts of STEEPLE factor on TUI groups operations
Social factors
Social factors mainly impacts the travelling industry, as the age distribution, growth rate,
unemployment level, income and education level, also the religious beliefs. As with the rise in
the per capita income impacts the booking facilities due to changing requirements and
expectations.
Technological factors
With the advancement of the technology it helped the company in including the booking
via the online platform with establishing the websites. Further with the introduction of the
technology resulted in reducing the cost of tourism industries and its facilities.

Economic factors
Various economic factors impacts the company operations, as the recession , exchange
rates impacts the company operations due to recessions it reduced the spending power in the
travelling and tourism sectors also impacted with the changes in the aviation and the functioning
oil prices.
Environmental factors
The environmental factors impact the company and TUI operations, due to the increased
in the carbon emission impacts the climatic condition (Ntouni and et.al., 2022). Also due to the
government regulations as for reducing the emission it impacted the company airlines groups
which resulted in taking steps for more greener options with introducing new holiday packages.
Political factors
The political factors are mainly the rules and regulations abiding the company operations
and impacts its global operations. Also the terrors attacks impacts adversely on the TUI groups
and its profits this reduced the demand of the travel and tourism packages and this resulted on
suffering with the unstable political markets (Khatri, 2019). Also the ships laws, the bureaucracy
and the international interferences impacts the cruises and the ships services by the TUI
company. This impose the company to abide with all the laws and regulations of the government.
Legal factors
Various legal laws and regulations of the government impacts TUI operations, for
operating in the dynamic environment the company must opt with the aviation permits, securing
the safety and security and the trade policy.
Ethical factors
Ethical factors impacting its travel and tourism services as the distribution of income,
exploitation of the gender, animal welfare, destruction of the environment and the cultural
impacts. For this the company must operate with considering all the ethical factors for achieving
growth and profits.
CONCLUSION
From this report it can be concluded that, the TUI is mainly recognized as the travel and
tourism group which provide wide services to large number of consumers. The company is
mainly established as the public with providing wide range of travel and tourism services and
comprising of various competitors while operating in the dynamic environment. Also the covid

pandemic impacted the travel and tourism industry by reducing its revenue earning capacity due
to limiting travellers. This also reduced the trading status and the business turnover and the level
of employment impacted due to the crises of pandemic. Also this reduced in the fall the
occupancy ate of the room due to lock down conditions severely impacted the internal business
environment of the TUI groups. The internal business environment mainly helps in defining
about the factors impacting the business and its decision-making which is directly linked with the
performance. Further more the government recovery plan help in rebuilding the business and
limiting the impacts of the outbreaks on the travel and tourism sector by imposing the
restrictions. Further more, with analysing the steeple environment the company defines about
various external factors as the trade laws, pandemic crises, aviation permits.

REFERENCES
Books and Journals
Blinova, E and et.al., 2018. Corporate social responsibility in tourism: International
practices. European Research Studies. 21(3). pp.636-647.
Gallego, I. and et.al., 2022. The impact of COVID-19 on European tourists' attitudes to air travel
and the consequences for tourist destination evoked set formation. Tourism
Management Perspectives. 41. p.100945.
Khatri, I., 2019. Information technology in tourism & hospitality industry: A review of ten
years’ publications. Journal of Tourism and Hospitality Education. 9. pp.74-87.
Ntounis, N. and et.al., 2022. Tourism and Hospitality industry resilience during the Covid-19
pandemic: Evidence from England. Current Issues in Tourism. 25(1). pp.46-59.
Pavlatos, O., 2021. Drivers of management control systems in tourism start-ups
firms. International Journal of Hospitality Management. 92. p.102746.
Sharma, A., Hassan, A. and Mohanty, P. eds., 2022. COVID-19 and the Tourism Industry:
Sustainability, Resilience and New Directions. Routledge.
Shonia, N. A. N. A. and et.al., 2022. Pandemic era and its impact on the investment and business
environment–Georgian case. Access to science, business, innovation in digital economy.
pp.7-15.
Zhang, H. and et.al., 2021. Forecasting tourism recovery amid COVID-19. Annals of Tourism
Research. 87. p.103149.
Online
TUI Travel PLC Strategic Management Analysis.2022.[Online]. Available
through:<https://bohatala.com/tui-travel-plc-strategic-management-analysis/>
The TUI group. 2022.[Online]. Available
through:<https://www.theofficialboard.com/org-chart/tui-group>