Between 5% and 10% of TUI’s UK bookings were taken by independent travel agents in 2024, the operator revealed as it announced its full year results.
CEO Sebastian Ebel (pictured centre) said TUI’s bookings through independents have been growing following the operator’s introduction of new commercial terms, including higher rates of commission, in October 2023.
However, he wasn’t able to say whether the percentage of total bookings taken by independents this year was closer to 5% or 10%. “We will see what is the real mix after the turn of year period, that is then towards our first quarter and towards May,” he said.
Overall, retailers, including TUI’s own network of stores, account for around a third of TUI’s bookings and the group is aiming to grow this to 50%.
“Yes, we pay a significant amount of commission, but retail is very important to us because we get early sales and high value sales. That is why we focus so much on retail,” added Sebastian, who was speaking during a conference call to discuss TUI’s 2024 financial results.
TUI UK & Ireland Managing Director Neil Swanson told Travel Gossip in October that it is looking to expand its own retail network, and it has identified 20 towns and cities for new stores. However, he said TUI would continue to work with third-party agents, saying it had seen ‘significant’ year-on-year double-digit growth through independents.
TUI is also focusing on shifting its direct bookings to its app, which is already used by almost 90% of its customers for after-sales services but only one in 10 use it to book their holidays, and conversion rates are low. However, 20% of TUI’s Black Friday sales came via the app.
“We need to convince more and more customers to book through the app,” said Sebastian. “In an ideal world, the split would be 50% retail and 50% on the app. We are putting a lot of effort in to grow that quickly.
“There is a clear target to shift from web to app. That doesn’t mean that people cannot buy on the web, but it will be based on app technology.”
