Core brand strategy

TUI Germany to close budget tour operator 1-2-Fly

TUI is driving ahead with its ‘core brand’ strategy in Germany with the planned integration of budget tour operator 1-2-Fly into the main business next year.

October 02, 2017
TUI Germany’s tourism chief Stefan Baumert
Photo: TUI/Christian Wyrwa

The German market leader will close down 1-2-Fly after the summer 2018 season. From winter 2018/19 onwards, package holidays in cheaper hotels will be offered under the core TUI brand instead.

Stefan Baumert, TUI Germany’s tourism director, explained the closure was part of the group’s international brand strategy to put more focus on the core TUI brand. He stressed that all 1-2-Fly hotels would continue to be offered by TUI. In addition, TUI is promising to keep prices stable as it aims to win more customers in the budget market to increase its overall market share.

1-2-Fly was launched more than 20 years ago to offer 3- and 4-star hotels and compete with Thomas Cook’s Neckermann Reisen and Alltours but has lost profile in recent years as TUI started to broaden its own programme with more 3-star hotels.

In a separate portfolio move, two TUI hotels in Turkey, including a Robinson Club, are being re-branded and repositioned.

The current TUI Magic Life Belek will re-open as the ‘Sun & Fun Premium Hotel’ for the summer 2018 season, specifically catering to Russian visitors who are now returning to the Antalya region. In turn, TUI Magic Life’s portfolio will include the former Robinson Club Masmavi, also located on the Turkish Riviera. Robinson will operate four clubs in Turkey in future.

“We are delighted to offer TUI Magic Life Masmavi for our German-speaking and international guests from Summer 2018. The generous size of the resort, offering a lot of space for active holidays, is an ideal fit with our all-inclusive club concept,” said Andreas Pospiech, Managing Director TUI Magic Life GmbH. “We are also working flat out to deliver our growth roadmap and are in talks about new TUI Magic Life clubs in additional destination countries.”

TUI Germany has increased turnover by 6% this summer, with a 3% rise in customer numbers and a 3% increase in average prices, according to the group’s latest trading update. The overall TUI Group has 9% revenue growth for summer 2017, with a 4% increase in customer numbers and 5% rise in average prices.

For winter 2017/18, TUI Germany is growing strongly so far with a 10% increase in customer numbers and a 3% rise in average prices. This is well ahead of the group’s overall 7% rise in turnover.

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