European journey large TUI Group is integrating its “vacation spot experiences” enterprise into its world CRM platform, giving it the flexibility to cross-sell the stock to prospects throughout the post-booking pre-trip section.
The replace got here in its H1s launched in the present day. TUI’s monetary yr runs from the beginning of October to the tip of September, with the October-to-March interval often loss-making.
Within the first half of the present yr it has managed to cut back these losses, reporting an underlying EBITA lack of €158.6 million, which is a 26% enchancment on final yr. Turnover was up 7.2% to six.81 billion euros.
This primary half loss is likely one of the final reminders of its vertically built-in tour operator legacy. It nonetheless sells “package deal holidays” however has transitioned right into a resort operator, a cruise line and most lately, a excursions and actions supplier. Or in TUI-speak, “vacation spot experiences”.
TUI’s vacation spot experiences ambitions have been introduced into the highlight this yr, starting with the announcement at its AGM in February that this could be a strategic progress space for the enterprise. TUI adopted this up with a deal to purchase the vacation spot providers companies of Hotelbeds Group.
One other related instance of TUI’s repositioning is the continued improve within the proportion of enterprise which is transacted on-line – within the first half of the yr the determine was 49%, up from 47% in the identical interval final yr. And the quantity of enterprise it transacts itself, direct slightly than by third events, can also be on the up, coming in at 74%, in contrast with 73% final time.
That is the place the potential of its “vacation spot experiences” unit begins to emerge. With three in 4 passengers reserving direct, these bookings undergo its world “One CRM” platform. TUI says that this provides it “a 4 to 6 month unique advertising interval” to cross-sell its vacation spot experiences product to prospects – no different vacation spot providers supplier will get entry.
And with all the things going by the One CRM platform, TUI has “data of [the] buyer [which] permits tailor-made and individualized advertising” including that this focused advertising generates larger ancillary enterprise conversion charges.
TUI carries some 20 million passengers a yr, so it is a important captive viewers. Nevertheless, it is usually all for working with third get together prospects. For instance, one of many companies it acquired from Hotelbeds Group was InterCruises, a dealing with agent for cruise firms, already works with hundreds of thousands of cruise passengers at 400 ports worldwide.
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