Travel Business Pages » TUI Travel

TUI put a lot of faith in new reservation platform

Alan — Fri, 06 May 2011 02:02:32 +0000

TUI Travel and Anite have signed a multi-year contract so the @comRes reservation platform can be implemented in both the UK and Ireland business. This the company says in just another move to seamless integrated reservations platforms in place of legacy systems.

TUI Travel’s accounting mistakes were due to the lack of an integrated holiday reservations system that ended up costing the company £117million in write offs and the resignation of Paul Bowtell, the CFO.

After merging Thomson ad First Choice, the company lost track of their key booking systems and in their annual report they reported they were streamlining two systems to further cut costs and enhance efficiencies, certain roles were to be consolidated and outsourcing to India was started.

The implementation of the Anite system into their Ireland and UK business follows a successful one in their German business. The contract, according to Anite will allow TUI to extend the license to others businesses under the same umbrella in the future.

TUI Travel announced in January they were in the midst of developing a sophisticated management system that would help them to improve efficiency. In March they followed that with an infrastructure outsourcing deal with Dell for six years.

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TUI see’s a rosie travel future

Alan — Sat, 04 Dec 2010 04:43:39 +0000

TUI, which is Europe’s biggest travel operator, and the only one on the FTSE 100, has reported that it is not worried about current downtrends in the market and bad weather. Stating that the company always deals with these sorts of problems well, representatives touted the fact that, apart from losses due to the volcanic ash problems, TUI’s profit was over £330 million.

The company says that it recovered from last year’s £94 million in losses through increased profits on its products. Summer’s trading was not, however, strong enough to cover winter losses.

TUI blames this on things like the government’s announcements on the economy and better than usual weather, which kept Brits at home instead of travelling. They said that the World Cup played a factor, along with losses in consumer confidence.

Even with the temperatures once again taking a nosedive and Gatwick Airport closing, the company says that it has the infrastructure, the ability, and the experience to adjust.

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TUI suffers from good weather and ash clouds

Alan — Thu, 12 Aug 2010 09:19:20 +0000

Along with most other business concerns, the travel industry is feeling the crunch of economic hard times. TUI Travel, the largest travel operator in Europe, reported this week that the company’s annual profits will be “at the bottom end” of projected estimates, and the news was reflected in the drop in share prices of almost 10 % on Tuesday. Shares in Thomas Cook, TUI’s biggest, rival fell by about 5%.

Company executives are blaming the slow-down in travel bookings and revenues on a number of factors including the weather. Unusually nice weather in the U.K. has kept many potential overseas holidaymakers at home, but the travel industry in general suffered severe losses during the volcanic ash cloud tie-up in May and June.

In addition to cancelled flights, there was the cost of getting stranded passengers home again and accommodations while they waited. TUI and many other travel-related businesses had hopes that the government would reimburse some of those costs, but this has not happened.

Paul Bowtell, chief financial officer for TUI, reported that the company still has a huge number of flights and packages for the summer, which means there will probably be some very good deals for travellers, but the downside of that for the company is that so many of those potential customers are waiting for the best deals and making last-minute bookings. TUI expects the last minute booking trend to continue, partially due to the general uncertainty in the economy.

Both TUI and Thomas Cook have stayed on a fairly good financial footing over the past couple of years due to cost cutting in the form of mergers and other measures, but once those savings were incorporated, both are being forced to look elsewhere for ways to save their profit margin.

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Low cost airlines surviving, if they can avoid plague of locusts

Alan — Thu, 13 May 2010 14:23:58 +0000

The global financial crisis hurt the travel industry enough in 2010, but the volcanic ash cloud that caused most European airlines to close for five days during April was symbolically simply an additional catalyst for disaster.

This week, TUI Travel and Easyjet announced their costs from the volcano’s eruption with losses of £78.7 from Easyjet, which is lower than expected although the carrier did suffer as it was forced to cancel around 6,500 flights. Up until the disaster, the company was expecting profits this year to reach almost £200m but now full year profits are expected to reach a max of £150m.

Easyjet chief executive, Andy Harrison, stated that EasyJet will continue to turn profit in 2010 even though it faced the recession, terrible snowfalls, and the volcanic closures, which is quite a surprise and a testament to the company.

On the other hand, TUI Travel reported that it was forced to cancel the holiday plans of around 175,000 people, forcing them to issue refunds to around 180,000 customers costing them a total of about £90m. At the same time, the company already had reported losses during the first half of 2010, making the volcano especially hurtful.

However, TUI Travel still performed better than most analysts predicted and the company believes that summer holidays will remain unaffected with their current trading strong before the eruption and expected to regain its balance once the debris and threat is finally over.

Chief executive of TUI Travel, Peter Long, stated that he expects the company to get their momentum back in the latter part of 2010.

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