An Analysis of Management Quality at TUI Group: Recommendations

This report provides a comprehensive analysis of the management quality within the TUI Group, a leading travel and tourism company. It identifies key issues such as poor customer service stemming from inadequate planning, research, and a lack of focus on customer needs. The report also assesses the extent of TUI's financial capabilities and the competence of its staff, highlighting the negative impact of staff incompetence on customer service and overall financial performance. To address these challenges, the report recommends the implementation of Total Quality Management (TQM) principles, including employee training and improved holiday package planning. The recommendations aim to improve customer satisfaction, streamline processes, and enhance the company's financial standing. The report concludes that while TUI is a leader, it must address these issues to ensure long-term success.

Management Quality in
Hospitality, Tourism and
Events

Table of Contents
Management Quality in Hospitality, Tourism and Events..............................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Underlying Reason for Poor Quality...........................................................................................3
Extent to TUI Group’s Financial Capabilities and Staff Competence........................................4
Recommendation.........................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
TUI Group is an Anglo-German multinational travel and tourism company which is
headquartered at Hannover, Germany. This company in largest Travel and Tourism Company in
the world but from some time company has been regarded worst in relation with its customers
service and some other concerns. This report will address reasons for poor quality of the TUI and
extent of its financial and staff.
MAIN BODY
Underlying Reason for Poor Quality
TUI group have been rated worst tour operators in terms of its package holidays. This
clarifies the reason that planning and research of the TUI group is not satisfactory which leads
to poor package holidays.
Businesses are getting more and more customers centric and this requires that their
planning and operations are according to their customers and TUI group needs to do the same.
This requires proper planning related to its packaged holidays (Katajala, 2019). TUI Group is a
travel and tour company and planning package is one of its core business activity and this means
that company needs to make proper research before deciding for right and suitable holiday
packages. Company also needs to plan the Holiday packages more strategically so that they can
give satisfactory service to its customers and at the same time attract more customers through
those holiday packages.
Customers service is another aspect related to which TUI Group is getting negative
reviews and this has also affected image and goodwill of TUI group. Organisations which are
working in service industry needs to pay adequate attention to their customer’s service and those
who fail remain with unsatisfied customers. The reason behind this is inadequate attention to
customers, TUI have failed to pay adequate attention to customer service and their complaints
regarding service.
Customer service is one of the major factors that attract customers towards a
company and its services. TUI does not paid proper attention to its customers and this proved to
its customers that they are not important for the company (Bai, Wu and Cheung, 2019). One of

the customers tries to reach for customers and could not connect with TUI representative at their
holiday. Such cases become reason for losing customers and they switch to competitors.
Extent to TUI Group’s Financial Capabilities and Staff Competence
Poor customers service is a reason of incompetent of TUI group specifically those who
are employed and engaged in customer service. Feedback and reviews received from customers
states that their emails are not properly and completely read by the employees and later they are
responded after long time and answers from them are also not satisfactory (Datu and et.al.,
2019). This clearly shows incompetence of staff of TUI group. The reason behind this can also
be shortage of the staff at the group which led to work pressure of existing employees. Another
following reason might be that they are not trained and this is why they do not pay attention to
customers and their complaints.
This requires that TUI Group train its employees because not reading Emails properly is
part of their incompetence. This says in some areas of work and operations of the company its
staff competence is limited.
With regard to its financial capabilities it can be said that financial capabilities of the
company are strong this is because company is leader in its industry and this suggests that
company have strong financial capabilities. Inn financial context one important consideration is
that even after increased and higher turnover profit of TUI Group have reduced in 2019 from
2018 (Annual Report of the TUI Group, 2019). This suggests that financial capabilities of thee
company are weakening.
Overall staff competence and financial capabilities of the company both are not in favour
of the company. This requires that TUI Group take immediate actions to improve these
conditions. This may otherwise lead to further loss of the company and with help of improving
staff competence and customer service company will also be able to improve its financial
capabilities.
Recommendation
TQM (Total Quality Management), this is an approach which focuses on long term
success of the organisation through factors like customer satisfaction and reduction in cost
(Kiran, 2016). This approach includes all members of the organisation in improving process,

products, services, and the culture in which they work. This also focuses on continuous
improvement, decisions are based on process centred.
This approach can be applied in the TUI Group. This will involve factors like improving
competence of the employees through training so that they can provide their best contribution in
customer satisfaction.
 The process for this will involve organisation of training program.
 Cost associated with this programme will be the cost which incurs in training program
this includes cost of trainer and training program.
 Employee’s participation in this is most significant.
Competent employees will perform better for customer services and their complaints. This will
contribute in customer satisfaction.
In relation with the problems being faced by the TUI group it can also be recommended
that TUI also needs to improve its holiday package and its planning. For this TUI needs to pay
attention to its research efforts and customers preferences in relation with holiday packages. This
will lead to improvement in its planning. In this context company can also identify and analyse
policies and planning of its competitors so that they can have idea of where they are weak and
lacking in their planning (Psomas and Antony, 2017). Improved planning for its holiday package
will lead to attracting customers for buying services of TUI.
 The cost included in this will include cost of research and time required is around 1
month.
 Employees involved in this will be marketing team, research team and planning team for
the holiday packages.
As TQM focus on overall improvement in the process through the above recommendation TUI
will include improvement in its process and at the same time improvement in those who are
responsible to carry out the process.

CONCLUSION
From above discussion and analysis it can be concluded that TUI Group which is leader
in its company is facing problems like poor customer service and the reason behind this is
improper planning and research and undue importance given to its customers. Staff competence
at TUI in relation with customer service is also inadequate and this has affected its financial
capacity. The problems being faced by TUI can be resolved through recommendations given
above.

REFERENCES
Books and Journals
Bai, Y., Wu, W.P. and Cheung, M.F., 2019. How personality traits, employee incompetence and
consumer similarity influence shoplifting behavior. Journal of Consumer Marketing.
Datu, Y.A and et.al., 2019. The Design of TBECC (Test of Business English Communication
Competence) for Front Office Staff in Hotel Industry: A Case Study of Hotels in
Surabaya, Indonesia. PEOPLE: International Journal of Social Sciences. 5(1).
Katajala, V., 2019. Seniors on board! Customer retention among+ 55-year-old customers. Case
TUI.
Kiran, D.R., 2016. Total quality management: Key concepts and case studies. Butterworth-
Heinemann.
Psomas, E. and Antony, J., 2017. Total quality management elements and results in higher
education institutions. Quality Assurance in Education.
Online
Annual Report of the TUI Group. 2019. [Online]. Available Through:
https://www.tuigroup.com/damfiles/default/tuigroup-15/en/investors/6_Reports-and-
presentations/Reports/2019/
TUI_AR_2019_EN.pdf196ebc3fcc7cbb4d4fa946d5295001b2.pdf
TUI Group. 2020. [Online] Available Through:
< https://www.tuigroup.com/en-en/about-us/about-tui-group>.