TUI Group, Europe’s largest holiday package tour operator, has set a goal to shift more than 50% of its bookings to its TUI App. Currently, app bookings account for less than 10% of its sales in key markets like the UK and Germany. TUI Group CEO Sebastian Ebel wants to transform the app into a one-stop travel shop, reducing costs associated with performance marketing channels and improving repeat bookings through loyal customers.
The TUI app, also known as the TUI Digital Assistant, initially launched in 2014 as a communication tool for customers. It now allows travelers to search, plan, and book all aspects of their holiday, including flights, accommodation, experiences, and holiday packages. TUI also offers standalone accommodation and tour and activity bookings on its platforms.
Despite the focus on the TUI app, the company will continue offering separate apps like TUI Blue for hotel-specific interactions and services. 80% of TUI package holiday guests already download and use the main TUI app.
In the Nordic market, TUI has seen significant growth in standalone accommodation bookings, with 80% of bookings made by customers who haven’t traveled with TUI yet. This market has also shown a strong interest in interactive and communal spaces within TUI’s hotels, as well as activity-based experiences and sports activities.
TUI is expanding beyond its traditional sun-and-beach offerings and venturing into city destinations. City destination experiences, such as shore excursions, have seen increased demand, and TUI Collections in city destinations have seen a 90% increase in bookings. TUI Musement, the group’s tours and activities division, is investing in branded experiences and partnerships to enhance its offerings.
Overall, TUI Group is focused on digital transformation and competing with other online travel agents. With its ambitious goal to shift over 50% of bookings to its TUI App, the company aims to streamline the booking process, reduce costs, and increase customer loyalty.
Sources: Skift