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Skift Take
The tour operator sees a bright future in selling more holidays that travelers can build on their own versus pre-packaged trips — and that includes offering them more brands.
Tour operator TUI is stepping up efforts to offer as wide a range as possible of holidays and activities to its customers, on top of its own directly controlled airline and resorts.
As demand soars, and it continues to fill some of the gap left by Thomas Cook, TUI wants to protect itself against adding too much of its own capacity, which could prove costly if jet fuel prices rise and other elements are hit by inflation.
That’s despite the tempting offer to scale up for what’s expected to be a strong winter season.
“We have to be careful because I always say the last beer you drink is the problem, not the first beer you drink, when you get a headache,” said chief financial officer Sebastian Ebel on the hedging strategy.
“Yes, we may take the last €10 million ($10.2 million) profit chance, but you can easily lose €50 million because you have too much profitability, and especially long haul could be more under pressure because the fuel part of the whole package is, of course,
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