TUI Group says the UK travel trade remains a valued distribution arm, despite the launch last week of its new direct-sell brand, Sundeals.
Some agents had expressed concern at the announcement last Friday (7 August) that TUI had launched Sundeals, featuring more than 20,000 hotels in 100 destinations.
Speaking at a media call to announce TUI Group’s third-quarter results, TUI Group CEO Sebastian Ebel said he welcomed the opportunity to reassure third-party agents that they are still valued.
He said: “Retail in all the markets is extremely important for us. It’s not altruistic. Yes it’s an expensive channel, but there is not a change in policy.”
He said the plan is to put 90% of the company’s ‘effort’ into the TUI brand, and 10% into Sundeals, which would receive more focus than the First Choice direct-sell brand. He did not rule out bringing Sundeals to the trade at some point.
In the financial update, TUI said revenue for summer 2026 across the company is down 6% year-on-year and down 8% for the UK.
“Winter had a slow start but in recent weeks has seen a strong pickup,” Sebastian said.
TUI said it is sticking to its previous forecast of underlying earnings before interest and tax (EBIT) of between €1.1billion to €1.4bn, despite what it said was a challenging trading environment.
Revenue for the first nine months of 2026 fell 1.6% to €14.5bn, while third-quarter revenue, to the end of June, was down 5.6% to €5.9bn.
Third-quarter underlying EBIT fell to €235 million from €321m a year earlier, largely due to the impact of the war in Iran, which cost the business €20m. In total, the war in Iran and Hurricane Melissa in Jamaica cost the company €81m during the first nine months of the year.
TUI said booking momentum had ‘picked up’ adding it had ‘performed well in a volatile market’.
Sebastian said “2026 is no ordinary year. TUI has held its own well in a difficult global environment. Our business model is proving to be resilient. Travel remains highly relevant to people’s lives, but the timing of travel decision has shifted.
“Wars and geopolitical tensions, consumer caution, economic weakness and rising inflation in Europe’s core markets – all these factors have influenced consumer sentiment and the timing of purchasing decisions.
“Our integrated business model has stood the test in this environment. In particular, our portfolio of well-known own hotel and cruise brands embodies TUI’s proven promise of quality and service.
“Strong product brands, combined with our tour operators, travel agencies, our presence in destinations and the activities business at TUI Musement, will continue to form a solid foundation for success in the future.
“TUI’s figures clearly show that demand persists even during periods of geopolitical crisis – though it is becoming more short-term in nature.
“The last four weeks in particular show that booking behaviour is picking up again. People are travelling but are currently making their decisions at shorter notice.
“With a commercially focused airline, our new low-cost brand Sundeals in the UK, the new TUI Cruises InTUItion class ships, a full hotel pipeline for new openings and our ongoing transformation, TUI is very well positioned for the coming financial year.”
