Analyzing Corporate Fit and Forward Strategy: A TUI Travel Case Study

This presentation analyzes TUI Travel, a British travel group, focusing on its corporate fit and forward strategy. It examines TUI's current situation, including its merger with TUI AG and its market position in the tour and travel industry. The presentation explores TUI's business strategies, such as offering integrated travel packages with its own airlines and hotels, and how these strategies contribute to its growth and customer satisfaction. It highlights TUI's competitive advantages, like higher customer scores compared to competitors, and its efforts to maximize value through charter flights and three-star ratings. The conclusion emphasizes the importance of strategic planning for business operations and expansion in the competitive UK travel market, underscoring the industry's potential for future growth.

Exploring Corporate Fit and Forward
Strategy Across all Units

Cover Content

Introduction
• Corporate fir & forward strategy help the organization to make it more
productive and it will be possible when their employees were healthier or fitter to
complete task. Unfit, unmotivated, stressed people reducing employees as well as
company's potential
• For the better understanding, this presentation select TUI travel company which
founded in 2007 and it is British travel group headquarter in Crawley, West
Sussex.

Current situation of TUI travels
• TUI travel PLC was British leisure travel group which founded in 2007 and after
this, it merged with TUI AG which also known as TUI group.
• It is German based multinational tour & travel company and its headquarter
based on Germany.
• TUI travel Plc merged in 2014 with TUI AG and become TUI Group, which
owned 56.4% and currently company operate in 30 countries and claim that they
have 30 million customer.
• In 2019, growth of the company listed around 3% and gross profit in the first

Current business strategy of the company
• TYI AG or TUI travel both are market leaders of tour & travel industry and both
have cooperated closely from 2007 and TUI's become one.
• Before merger, TUI AG founded in 1923 in Berlin and listed in Frankfurt Stock
Exchange. In 2000, it acquire Thomson Travel and in 2002 company bought
Hapag Lloyd

Continue…
• Current business strategy and model help TUI to increase world growth over last
decade. Tour & traveling market is very attractive and provide huge future
growth but in traditional tour operator have huge competition.
• So travel agency push their business and provide online platform for the
convenience of customer as well as company.

Business strategies linked with TUI groups
• TUI Travel is world's traveling which has other group business such as Travel
operator, Hotels, Aviation etc.
• TUI travel provide holidays package where they use their own airlines to provide
traveling facilities. Business strategies of TUI group linked with each other.
• It is the opportunities for the TUI group to earn profit from various sources of
business.

Continue…
• According to one survey, it has been observed that Thomas Cook received lowest
customer score that is 69% and TUI get 74%. As per this survey, service of TUI
Group is more effective or valuable for customers.
• In order to get success, Travel strategy linked with Airline where they provide
full holiday package which include flights and accommodation of TUI group.
• There are various problem with their competitors which make it less effective in
comparison to TUI Travel. Similarly Airlines TUI owned five European airline
which inherited with TUI Travel to maximize their its value.

Continue…
• There are lots of disappointment with TUI Travel company which impact their
operations, customer and profitability as well.
• In order to become largest travel group in the Europe company charter flights
more then 150 destination.
• TUI also granted three star ratings which is value for money. It also beneficial to
increase organization value, holiday reps, accommodation and customer services
which were better then four starts.
• All the merged company such as First choose, Thomson Travel get more then
70% customer score. TUI admitted that tour & travels business are more
challenging marketplace.

Conclusion
• From the above presentation, it has been presented that tour & travel industry is
very wide and have future growth which provide productivity as well as
profitability. Organization need to build their strategy which helps in increasing
business operations as well as expansion of the organization in the market.
• In the UK market, travel company found to be more competitive which provide
huge future growth in this sector.
•

References
• Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of
corporate sustainability into strategic management: a literature review. Journal of
cleaner production. 112. pp.2833-2850.
• Jenkins, W. and Williamson, D., 2015. Strategic management and business
analysis. Routledge.