Tui AG to reduce stake in Hapag-Lloyd

German travel giant Tui AG's stake in container shipping company Hapag-Lloyd will drop to 13.9% following a tie-up with Chilean firm Compania SudAmericana de Vapores.

Tui, which also controls Europe's largest tour operator Tui Travel, currently owns 22% of Hapag-Lloyd.

The shareholding will drop first to 15% as part of the merger and then to 13.9% because Tui will not participate in a planned capital increase.

The deal between Vapores and Hapag-Lloyd will create the world's fourth-largest container-shipping company.

Tui, which has long planned to exit container shipping, will also get priority placement rights for its remaining stake as part of Hapag-Lloyd's planned stock market flotation in 2015, it said in an internal letter seen by Reuters.

Google’s Dan Robb to join Tui Travel mainstream division

Tui Travel has appointed Google’s industry head of travel Dan Robb as the first digital marketing director for its mainstream sector.

Robb will join Tui on July 1 and will target driving the mainstream division’s digital marketing and “growing the group’s position as a leading digital business”.

Nick Longman, managing director of distribution and online for Tui’s mainstream sector, said: “Digital marketing is core to our digital and online modernisation strategy.  It is therefore important that we have the very best people in the business to make sure we capitalise on the opportunities available to us.

“Dan brings with him a wealth of experience and is uniquely placed to ensure we get the most out of our relationship both with Google and other leading digital companies.”

Robb said: “I am delighted to be joining Tui Travel. The group is at an exciting point in its digital journey and I look forward to bringing my experience to the team and helping to further drive its digital growth.

“While I will miss Google and the great team we have in Google Travel, this is a fantastic opportunity and I look forward to joining in July.”

Robb has worked at Google for the last nine years, leading the development and growth of the search engine giant’s travel team. Before that, he worked at Associated News for seven years.

Robin Frewer, director of travel and finance at Google, said: “Dan has made a fantastic contribution and has played an important role in educating the industry over the past nine years. This is an opportunity for him and also reflects Tui’s understanding that digital will become ever more important for their business.

“Dan will challenge the Tui business and encourage it to move at a greater pace.”

Frewer said that he had previously hosted Tui Travel chief executive Peter Long and mainstream managing director Johan Lundgren at Google’s head office in San Francisco, as the travel giant looked to develop its digital strategy.

And he confirmed that Ru Roberts had been appointed internally as Robb’s replacement: “There are always succession plans in place at Google, and Ru will be heading up our ‘holidays team’ and leading our relationships with the tour operators. Dan is a senior member of the team, but we have some excellent people in place and some new faces coming in to ensure there is a seamless transition.”

Cruising Excursions out to cause waves with international expansion

By Travolution

Two-and-a-half years after introducing its disruptive start-up model in the world of cruise, UK-based cruisingexcursions.com is poised to expand its international reach.

The firm, which will turn over £6 million this year, has created new websites for the Germany, French and Dutch markets and expects to make a splash after seeing considerable growth in the UK.

Having agreed deals with the UK’s big two, Thomas Cook and Tui Travel, the firm has seen sales increase 400% this year, double what it had projected.

It turned a profit last year according to accounts filed last September and is now out of its start-up phase and a fully sustainable business, founder and managing director Simon Purchase told Travolution.

He was in London this week to meet with the technology firm Correl8 which built the existing website and has created its second version including its international sites in just eight weeks.

Purchase admitted at first it was a hard slog convincing agents to feature his product, but the signing of the big two was a turning point.

“We have had a very successful couple of years. It’s gone round in a circle to the point where people are asking us whether they can take product.

“With Thomas Cook and Tui Travel now offering excursions to their passengers, customer are now asking their agents if they can do their excursions.”

Purchase said agents have also been forced to seek out additional revenue opportunities since cruise lines cut commission to agents - the UK’s leading operators by as much as 10%.

With 10,000 tours in 700 ports worldwide, Cruising Excursions believes it is well ahead of any potential rivals in a sector tipped as the next battle ground for disruptive technology.

Behind the business, however, is more than just fancy technology it has contracted its own tours and organises its own transfers to give it control over the product.

The firm’s entry into the sector has seen local tour guides and operators previously frozen out by the major lines able to grab a slice of a growing and lucrative market.

At the same time a market that was sewn up by the operators has been broken open, offering customers significant savings on their on-shore activities.

Cruising Excursions now claims to have 8% of the UK cruise market of 1.7 million annual cruisers. It had originally targeted hitting 2% after two years.

Purchase said trade distribution has played a key part in the firm’s growth, rising from just 10% at the outset to 50% today.

European expansion isn’t Cruising Excursions first foray overseas; it already has a health business to consumer operation in the US and has just signed with Harvey World Travel in Australia.

But Purchase said he expects its latest expansion will cause further ripples among operators who are seeing good growth in cruise in Europe particularly in Germany, the second-biggest market.

“When I started this business I never thought there was this much money in excursions. The dramatic growth from direct and agents has been incredible in comparison to what we budgeted for.

“I’m obviously very pleased with the company’s success and am driving the business forward in the future to inhibit potential competitors.

“This sector has been a closed shop for 20 years. The cruise lines have never put their prices down they have always put them up. What do they expect?”

Cruise Excursions plans to launch an app that will allow customer to book their cruises while they are away, up to a day in advance.

It has also developed an API although this is not being used widely to date, most agents approaching shore excursions as an after sale add-on rather than inserting them into the booking flow.

The firm also hopes to add pre- and post-cruise trips, something failed rival Shorex set out offering but was unable to make work.

Sunsail rebrand to broaden appeal

By Phil Davies

Yachting specialist Sunsail is seeking to encourage more holidaymakers onto the water with a brand revamp.

The new brand identity is being unveiled this week in an effort to appeal to a wider customer base.

Research by the Tui-owned operator found that potential customers find it difficult to engage in sailing holidays due to a long list of perceived barriers to entry – it’s expensive, it’s too hard, it takes too long to learn, it’s cramped and uncomfortable and it’s “not for me”.

The company’s priority is to cater for the needs of ‘new to sailing’ consumers by helping them to more easily discover and experience the range of activities and holiday options available in destinations.

Sunsail provides a fleet of more than 800 yachts in 27 locations worldwide and runs a Beach Club in the Mediterranean.

The new brand identity reflects that “whoever has an experience with Sunsail has a sense of personal fulfillment,” the company said.

Head of global marketing Simon Conder said: “It is important that Sunsail retains its established values but at the same time develops a new and modern identity.

“The rebranding exercise will ensure that we get the right message out there. We feel it’s important to let people know what Sunsail stands for and ultimately make it easier for our current and potential clients to choose our brand and products.

“The brand identity now reflects and supports the leading position and landscape for Sunsail.

“Sunsail shares with its customers an incredible enthusiasm for sailing and its holidays offer zest, vitality and, above all, fun for all”.

Prices start at £399 per person for a seven-night Beach Club holiday on a half board basis at Sunsail Club Vounaki in Greece including flights from Gatwick, transfers and watersports.

Tui Travel to push for widening of package law scope

By Ian Taylor 

Tui Travel will lobby in Europe to have the proposed Package Travel Directive tightened and airline sales of holidays redefined as ‘customised packages’ rather than ‘assisted travel arrangements’.

If successful, Tui’s proposals would extend the liabilities of a package organiser to airlines such as easyJet and Ryanair.

Mike Bowers, Tui Travel UK’s general counsel, said: “We will say click-through sales are competing with our core offering and with dynamic packages, so should be treated as full packages.”

He said: “The EC is seeking, as far as it can, to capture all true holiday arrangements in an expanded definition of a package and has made a pretty good fist of it.

“The directive has been drafted with the intention of bringing in airline click-throughs, which fall within the definition of assisted travel arrangements where there is a transfer of booking data, but not personal data.

“We would like to see the same conditions apply to anything a customer thinks of as a holiday.”

Bowers added: “Anyone who cares about regulatory fairness, and fairness for the customer, should welcome the directive. It’s not perfect, but the European Commission has done a pretty decent job.”

He said: “Holidays need to be protected. You frequently have an intermediary who is not the end supplier, a service provided overseas and holidays purchased in advance.

"The market has changed since the 1990s, but for the customer these considerations are still relevant.”

Tui targets river cruise after signing eWaterways deal

By Chloe Berman 

Tui UK and Ireland hopes to attract new customers following a partnership with eWaterways that will see small ship and river cruises sold through its agencies.

The distribution partnership is due to be confirmed at this week’s Clia UK & Ireland Selling Cruise Conference in Southampton.

The deal will see Tui UK offering a diverse new collection of small ship cruises to customers from companies including Compagnie du Ponant, and river voyages onboard Royal Crown.

Other options include expedition cruises in Antarctica and coastal voyages throughout Europe, Asia and the Caribbean.

The partnership will see boutique motor sailing holidays around Croatia being offered to a new audience.

Tui UK cruise general manager Karen Doyle said: “As a major cruise retailer we are always looking at new opportunities to increase our sales and take advantage of growing sectors, such as river cruise.”

Daniela Wagner, chief executive of eWaterways, said: “We are delighted to announce this partnership as this will provide a number of exceptional small ship cruise products for Tui that fits with its medium and long‑term plans for diversification, as well as adding to our own distribution strategy in terms of positioning eWaterways with key wholesalers and tour operators in the UK.”

eWaterways features a range of small ships, luxury yachts, river boats and barges, with capacity ranging from six to 150 cabins.

Will Tui bring in single pricing? It 'could'

By Lee Hayhurst 

Will Tui Travel stay good to its word and bring in single pricing across web and offline, following the move to price parity by rival Thomas Cook?

The travel giant was early out of the traps last year in indicating this was its ultimate intention when travel distribution and online directorNick Longman addressed the Travel Convention in Turkey.

He indicated that a move to flat pricing would happen within two years as Tui rolled out its new Phoenix in-store technology system and would see agents add a service charge.

But last week his former UK boss, Johan Lundgren, now chief executive Peter Long's deputy, struck a more cautious sounding note while accepting the logic of single prices across multiple channels.

As Tui revealed plans for new generation concept stores last week, Lundgren stopped short of promising to bring in flat pricing or setting a date by which it would be implemented.

He told Travel Weekly: "It's not unlikely that this will come at some point. There is logic to the idea that there should be the same price in all channels - that is a logical evolution."

Asked for an assurance that it was Tui policy to bring it in, he said: "It could be coming," adding: "there is a logic to the fact that the price is the same in all channels.

"We should remember some of the logic about the online discount is that if the customer does the work themselves they get something for it."

In what some have seen as an audatious bid to outflank its rival, Cook announced its move to price parity with very little fanfare shortly before Christmas.

The move to flat pricing was widely praised in the trade for offering customers clarity and an attempt to move them away from the assumption that online is always cheaper.

Speaking during a filming day ahead of today's Barclays Travel Forum John Hays, managing director of Hays Travel, said the impact had been noticeable and was welcome.

"Thomas Cook seems as if they are implementing what they said they would in terms of reducing discounting online - it appears they are implementing a one-price strategy. “Tui said they needed to do that, but it's less obvious with their online discounting."

New mobile app and tech-laden concept store for Thomson

By Travolution

Leading European tour operator Thomson has launched a new mobile app ahead of the summer holiday period as it prepares to unveil its next generation hi-tech store of the future.

The MyThomson app will allow customers to access information about their trip while on the go including destination guides, weather updates and flight times.

It will also be integrated into social networking sites like Facebook and Twitter.

Johan Lundgren, deputy chief executive of Tui Travel, said: “Tui Travel is an online driven business and we will continue to enhance our mobile offering.

“The launch of the MyThomson app is an exciting new way of connecting our customers with Thomson anytime, anywhere, anyway.

"Innovation is at the heart of our strategy to deliver future growth, and the launch of the MyThomson app reflects our position as market leader.

“The annual summer holiday is a significant purchase for our customers and we know that they not only spend time choosing and planning their holiday but also looking forward to it.

“The app is a fantastic way to get customers more excited about their holiday and will help them keep up to date with all the information they need in one place, just a tap away.”
 
Meanwhile, Tui will announce next month which location has been chose for its new concept store that it promises will harness the latest technology to drive customers in.

The firm hopes to have refitted 10 of its 700 UK stores by Christmas and as many as 100 in coming years.

Tui said  a key strategy is “selling directly to our customers through multiple channels, and so our retail network remains important to us”. It added "the emphasis of these new shops will be on service in a modern environment". 
 
Kathryn Ward, director of retail and financial services, said: “Our next generation store recognises the importance of people when it comes to choosing and booking a holiday, whilst integrating technology into the whole experience to really bring it to life.

“Customers will be able to immerse themselves in stunning, rich and evocative content as they research and browse our unique holidays in-store.”
 
 Key features of the next generation Thomson shops include:  
 
- The shop front will have a giant immersive video wall (2m x 3m) to showcase new video content and imagery of the holidays combined with evocative sounds and  aromas

- At the entrance an interactive map and interactive table will entertain customers and help them research holidays and find out more about the broad range of product available

- The Advice Bar will give customers the chance to browse the Thomson and First Choice websites on self-service laptops with staff on hand to answer any questions

- Free customer WiFi will also enable customers to use their own devices to research in store and check out review content

- High definition screens and booth projections around the store will feature changing images and videos to inspire customers and give them a feel of what to expect from their holidays before they book

- The store will be zoned to meet the needs of all customers and staff will join them to help with their holiday decisions.  Customers can choose from sitting around a laptop in the pool area, self-serving at the Advice Bar or have a more personalised experience in the booths where images of their chosen holiday will be projected on the wall

- All customers will be served with barista style coffee to further enhance the booking experience