Tui is turning its attention to the budget travel market, where it can offer cheaper holiday packages. “We’re currently examining the budget‑travel segment” said Sebastian Ebel, CEO of Tui, in an interview with Handelsblatt.
While the company remains the market leader in premium travel, it also aims to become an attractive option in the lower‑price range. “We want to win customers in that segment as well” Ebel explained. “To date we hold only a 10‑15 % market share there”.
Europe’s largest travel group is reaching growth limits in saturated markets such as Germany, where luxury offerings struggle to expand further. “It’s normal for management to seek new growth areas-especially where the company still has low market share” Ebel added.
Tui already operates two budget brands, Ltur and First Choice. The company plans to leverage their experience and technology to better reach and serve the budget‑travel customer base. “We’re working hard to strengthen our appeal to that segment” he said.
Despite the expansion, Tui will not sacrifice profitability. “We’re also focused on margin and profitable growth in the budget sector” Ebel emphasized.