TUI is strong brand. This “Case for Change” is not about saving the brand, it’s rather a strategy to outline future challenges & opportunities and to open a windows into emerging revenue potential – Youth and Students Travel markets. Based on previous industry performance and global developments in travel and tourism, a conservative estimate predicts that the youth and student travel market will reach 300 million arrivals by 2020 and represent US$320 billion in market value. The travel industry has changed dramatically and market leaders need to transform to remain relevant, providing a new value to digital natives that independently organise their travel with spontaneity, flexibility and freedom. By combing digital technologies and emerging markets, a brand such TUI would be able to create new market spaces and unlock great business opportunities. Digital innovations help brands to reconsider their product development strategies and allow them to deliver a long-term great user experience. This piece of work is part of my Digital Media Management program at Hyper Island, Manchester, UK. Please feel free to get in touch if you have any questions.

1. A Case for Change
How Digital Transformational Change can help TUI
to create its place in the Travel Market of the Future.

2. Tr a v e l E x p e r i e n c e
Sun & Beach | Activity & Adventure | Luxury | Excursions & Transfers | Accommodation | Oceans & Rivers | Responsible travel
B u s i n e s s S e c t o r
Mainstream, Accommodation & Destinations and Specialist & Activity
A Market Leader
1
TUI is a market leader, having grown through acquisition and owning brands such as Thomson Travel, Airtours and Laterooms.com.
Their scale allows them to negotiate the most competitive deals for their customers.
Ownership of booking engines, aircraft and resorts give TUI the edge in allowing for a completely customised holiday experience.
[TIMELINE] TUI – Historically one of the world’s leading leisure travel companies
1968creationofTUI
1970AirtoursIntl&
TransEuropa
joinedTUI
1972Hotelbrands
established
1990Renameofthe
maintouroperatorinto
"TUISchöneFerien"
1995CreationofTUI
NederlandandTUI
Austria
1995-1996Creationof
TUINederland,Austria,
SuisseandBelgium
1998Acquisitionofthe
grouprenameto
HapagTouristikUnion
(HTU)
2000HTUwas
renamedtoTUIGroup
2001TUIGroupisnow
100%subsidiaryof
PreussagAG
2002Renameof
PreussagAGtoTUI
AG
2002Reorganisation
fromamixedcompany
totourismcompany.
2004WestLBsoldits
share.Newshareholder
onboard
2005Jointventure
betweenworld’slargest
travelgroup,TUIAG
andLPTI.
2007TUITravelPLC
wasformed
2009TUI’spresencein
RussiaandCIS
2010Reorganisationof
TUI’sbusinesssectors
2010Reorganisationof
TUI’sbusinesssectors
1960’s 2010’s
2012Announced
changestothe
structureofthe
MainstreamSectorto
acceleratethemoveto
modernmainstream
andbeingonlinedriven.

3. A Brand with Values
TUI is committed to its customers and creating values in their lives. This is what stands on the company website:
“Making travel experiences special underpins everything we do and keeps our focus on providing the unrivalled choice, professionalism
and confidence our customers and stakeholders can rely on, now and in the future.”
Brand values that drive current brand behaviour and business strategy
Teamwork
Integrity
Value
Driven
Responsible
Leadership
Customer
Driven
“We respect our customers and
never forget that they choose to
spend their leisure time with us. We
share a duty to maintain their loyalty
and trust. We anticipate customers'
desires and everything we do is with
them in mind. We believe there is no
such thing as mass market but a
huge market of individuals.”
“We are committed to sustainable
development and to making a
positive impact on society. We know
leadership has to be earned and we
never take it for granted. We
communicate openly and easily and
help each other develop and grow.
We celebrate local differences and
actively seek to contribute to a better
world.”
“We share an infectious,
entrepreneurial streak and a clear
focus on the need for profitability. We
look for opportunities that have a
commercial advantage for us and
add value to our customers'
experience. We predict, translate
and bring to market new leisure-time
products based on their genuine
appeal to customers.”
“We are passionate about being the
best and about winning with integrity.
We seek the ideas and trends that
change leisure-time markets for the
better and move quickly to action
them. We thrive on teamwork. We
are not afraid of making brave
decisions. We want to do something
new every day and we love what we
do.”
2

4. Financially OK. But?
These values have ensured TUI a very good position in the market through previously mentioned acquisitions and owning brands
worldwide. However, its products and services are mainly offered to families with kids, adults, couples, elders and businesses.
What is missed is a future vision, considering future travellers and their needs, aspirations and understanding of their behaviours.
In 2012, Group revenue declined by 2% from the prior year at £14,460m (2011: £14,687m). This result was driven by organic
growth of 2% and a foreign currency translation impact of -4%. Organic revenue growth was driven by higher volumes and
average selling prices in many source markets.
In the brand outlook into 2012/2013 stands: “Our strategy of increasing our unique holiday (differentiated and exclusive product
combined) offering, selling through direct distribution channels with a focus on online and driving continued operational efficiency
throughout the business is paying dividends. Our strong business models, which have evolved through a deep understanding of
the leisure travel market and the needs of our customers, lay the foundations for continued success and long-term sustainable
growth. We have set out a road map for growth over the next five years and will deliver improved customer experiences and
increased shareholder value.”
Financially OK, but what about customers’ values?
Is your strategy sustainable? Is not this just another product-driven mindset?
3

5. Future Challenges
A Customer Insight Study done by AKQA has shown the following:
Young, digitally enabled people are currently using Google to plan their holidays.
The customer uses mobile as an integral part of their day to day life – and doesn’t expect this to change on holiday.
They are used to booking as they go, and sharing their life through their social networks.
This customer has a self-perception that the best experiences are spontaneous and unexpected.
The idea of over planning leisure time (designated fun time) feels distant to them (hen parties, family events).
They also understand that this go with the flow attitude often lets them down – they end up lost, spending a fortune on roaming
charges, or end up paying through the nose as you’ve left things to the last minute.
They would welcome a service that could add value to their holiday whilst enabling them to feel like they’ve curated the experience
themselves.
Young people are digitally confident enough to create their holiday independently.
TUI’s mainstream offering (trusted selections, convenience and package holidays) is not at present valued by them
and could be considered an old fashioned way to travel.
That’s a challenge which should be turned into an opportunity.
And the future is full of great opportunities!
4

6. Three factors why TUI should consider a radical shift in its business strategy: (1) By 2020 there will be almost 300 million
international youth trips per year, according to UNWTO forecasts, (2) Travel is considered as the biggest single opportunity to
grow in the next 5 years – guess who is our Target Audience in 5 years? And (3) The purpose of travelling for youths is changing
The Future is Bright
Turn the challenge into opportunity by listening actively to your young customers and understanding what are their essential
needs and values when travelling? Freedom and flexibility are the new desires and you should follow future predictions
and use digital technologies to drive your business into that bright future. Here are some relevant data to follow:
1
10
100
2002
2004
2006
2008
2010
2020
148150170180198
300
MillionInternationalArrivals
In 2020, travelling youths will represent
US$320 billion in market value:
1
10
100
Tourism
Aircarft
Other
Social
Mobile
Acquisitions
Tech
MarketShare%
Tourism is the biggest single opportunity
for business over the next 5 years:
1
10
100
Languages
Volunteering
Work
Places/Cultures
Family/Friends
Relax/Fun
Study
PurposeofTravel%
Flexibility to explore new places is key
motivation for youths to travel:
5

7. Adjust Your Value Chain
Based on this, you’re just another tour operator, with a product driven value chain,
ignoring future opportunities – i.e. not creating customer experiences, nor values!
Site Operator,
Cultural Group
Hotel,
Restaurant
Transport
Company
Travel
Agent
Transport
Company
Organise event,
experience
Advising tourist on
product contract
Transport from
the destination
Transport to the
destination
Providing
accommodation,
food, etc.
Future opportunities are huge and you have the power to be leading contributor into this future. What if we can take that further
and co-create the future of the industry. It might sound bit cliche to say you should DISRUPT the industry, as disrupters are
everywhere and new business ideas keep on launching almost everyday. One of the biggest challenges for your business is to
gain a certain level of self/brad-awareness. To identify your harmful beliefs and to be able to admit that a Change is needed.
Current Value Chain is a great example of an old-fashion and product-driven business mindset.
6

8. Change Your Mindset
The current Value Chain
+
=
Myopic strategy leading to a long-term and systemic disappearance from the market.
TUI is a market leader and knows best what travellers need.
Our strategy of increasing our unique offering is paying dividends.
We will keep growing based on our strong business models is built on deep understanding
of the leisure travel market and the needs of our customers.
We can provide the best the best experience for the best prices.
Disruptors as Booking.com, AirBnB and Expedia.com are competitors and we won’t cooperate with them.
We sell holiday concepts that you can only buy from our brands. We are focused on increasing the amount of
unique and differentiated products that you can only buy from our brands.
We are experts in technology and online businesses.
7
Someofyour
Harmfulbeliefs

9. Case for Change
Combining previously mentioned factors – your current value chain and held harmful beliefs, that can lead
to a lack of constructive self–awareness and unmeant arrogance. That’s a Case for Change – A time for an update!
Hence, how can a 360 travel service (from booking, to the plane, to a hotel room) offer young travellers something they value?
How can you add value to their holiday experience? How can you change ...
From
We sell ready-made
holiday packages
Product focused
To
We facilitate an eye-opening
and flexible holiday experience
Customer focused
8
The answer is: GIVE THEM WHAT THEY VALUE THE MOST – FREEDOM!
Redesign your strategy to be more customer-driven.
Stop selling holidays and start creating values by facilitating their flexible holiday experience.

10. First: Identify Customers’ Needs
To get this change right, you need to understand
your customers’ user journey and be able to
identify their main needs and achieve their new
Desired Outcome:
Enjoying an eye-opening
and flexible holiday experience.
This is a short version of a Customer Activity Cycle,
demonstrating main activities young travellers do in
order to achieve the desired outcome, while
enjoying the desired outcome and after that to
keep it going.
Ideally, you might want to step into this cycle as
soon as possible ad stay there as long as you can.
The goal is to put value in and take waste out.
Waste is any meaningless activity that can
complicate travellers’ path to achieve the Desired
Outcome. Get rid of it!
Enjoying an
eye-opening and
flexible holiday
experience
Search for tip
Plan your trip
Book a ticket and room
Pay
Go to the airport
Pack your luggage
Get insurance
Check-in
Get to your hotel
Check-in at your destination
Boarding
Explore your destination
Get in touch with locals / reps
Get car/scooter to travel
Search for new adventures
Get back to your hotel
Go to airport, fly back
Share experience
Share experience
Evaluate your trip
Provide feedback to your travel agency
Think about new experience next time, engage online
PRE DURING
POST
9

11. Second: Eliminate Waste
Waste is the value gap you can easily fulfil by
solving customers’ problems.
Most of the waste happens in the DURING stage,
where the need for flexibility is obvious. Having a
flexible holiday is a non-linear process leading to
richer experience.
current market disruptors are trying to cover one or
more of the these gaps, identified during the
Customer Activity Cycle – I have clustered them
into groups of problems to solve.
You have the opportunity to create a unique,
integrated and personalised solutions, combing
your global network and assets, making you
customers’ first choice.
Enjoying an
eye-opening and
flexible holiday
experience
Search for tip
Plan your trip
Book a ticket and room
Pay
Go to the airport
Pack your luggage
Get insurance
Check-in
Get to your hotel
Check-in at your destination
Boarding
Explore your destination
Get in touch with locals / reps
Get car/scooter to travel
Search for new adventures
Get back to your hotel
Go to airport, fly back
Share experience
Share experience
Evaluate your trip
Provide feedback to your travel agency
Think about new experience next time, engage online
Enjoying an
eye-opening and
flexible holiday
experience
LOOKING
FOR
INSPIRATIONS
FINDING THEBEST OFFER
ONE-FITS-
THEM-ALL
PACKAGES
PACKAGE
CAN BE
PURCHASED
ONL WITH TUI
PARTNERS
PRE DURING
POST
NO
POSSIBILITY TO
CHANGE /
UPDATE MY
HOTEL
HARD
TO
FIND
AUTHENTIC
LOCAL
EXPERIENCE
NOINTERNET
CONNECTION
NO POSSIBILITY TOCHANGE MY LOCATION
IMMOBILITY
IRUN
OUT
OF
M
ONEY
BUDGETEVALUATION IS A PAIN INTHE ...
O
M
G
!M
Y
RO
AM
ING
BILL
AM I LOYAL
TO THE BRAND?
10

12. Third: Create New ...
Value
Proposition
REDUCE
ELIMINATE
RAISE
CREATE
ELIMINATE
Which of the factors that the industry takes for
granted should be eliminated?
REDUCE
Which factors should be reduced well below
the industry’s standard?
RAISE
Which factors should be raised well above
the industry’s standard?
CREATE
Which factors should be created that the
industry has never offered?
11

13. ... Innovative Values
12
CREATE / RAISE
• A New Platform – Providing travellers with flexible & immediate tools to change,
update or upgrade their holidays. It allows them to change locations, hotels and
helps them to find the best offer – while being at their destination (i.e. upgrade to a
better room, find another hotel, move to different city) and also helps to find the
best/cheapest way to get from A to B, C, etc. Young travellers will use this platform
to plan, book and pay their holiday, without the need to waste time by searching
and asking for tips. A smartphone App is part of Platform to ensure immediate
access to TUI’s recent offers – before, during and after their holiday!
• A Subscription Payment Model – They will not pay for a ready-made package,
they’ll rather “subscribe” with a given budget to be used during their holiday days.
Once they arrive to the destination, they decide how much they spend, where to
stay and what to do – flexibly & immediately. Keeping the budget is one of the
identified “pains” that young travellers face during and after their holidays.
• A Crowd-funding Platform – Young travellers can crowd-fund their experience
by sharing their aspirations with their families, friends and peers. This Platform
gives travellers an authentic freedom and allows them to create their own unique
experience. And TUI is here to facilitate that user experience.
• Crowdsourced Peer-To-Peer Customer Services Platform – Turn your
travellers to become your Local Reps. Reward them when share their experiences.
• Collaborate with Internet Providers – Ensure that all your destinations have
access to the Internet. We live in the age of the Internet of Things, everything and
everyone is connected.
If that will be technically impossible, provide your travellers with FREE SIM-
CARDS with UNLIMITED DATA. Why data? To make sure they can make the
best out of your new platform!
• Collaborate with Local Businesses – Allow them to become part of the new
platform where they can provide travellers with relevant information about what’s
happening at which destination.
• Invest part of your revenue back to Support Local Projects – Build better
and richer holiday experiences. You win, travellers win and locals win (jobs).
• Raise the number of “Purpose-driven” holidays – Youths travel for different
reasons, make sure you find what motivates them and meet their aspirations
(education, languages, cultures, etc.)
• Sales points – Collaborate with various Online/Offline partners to increase sales.
ELIMINATE / REDUCE
• Carbon Emissions – Keep your Carbon Emissions Strategy to reduce the
environmental impacts produced by aviation, water and ground transport, major
premises and hotel properties.
• Green Energy – Energy saving initiatives can dramatically save money by cutting
costs in building, airlines and operations.

14. Four: Pimp Up Your Revenues
13
A flexible holiday experience will add value to young travellers’ lives while driving your profit up!
The new platform provides
youths with a flexible way
to manage their holidays,
leading to returning
customers which would
increase the number of
bookings and sales.
By allowing travellers to
update or upgrade their
bookings on–the–spot, you
can easily generate money
that they probably would
not spend when pre–
booking.
You will also invite local
businesses to promote
their offerings through your
new Platform / App,
adding another revenue
stream from local
recommendations.
Through Brand Loyalty Updates / Upgrades And Local Businesses

15. A Flexible Holiday Experience
Adventure Education Hostels Community Culture Web Acess Budget Hotels Cards Visas Work Abroad
A true travellers’ experience can be achieved
only through flexibility and freedom, tapping
into different markets, making sure that you
can cover travellers’ activities pre, during
and post enjoying their holidays!
To achieve that goal, a new Value Chain needs to be implemented
Organise event
experience
Accommodation,
food, etc.
Advising tourist on
product contract
Transport to the
destination
Transport from
the destination
14

16. Summery
TUI is strong brand and financially doing well. This “Case for Change” is not about saving your dying brand, it’s rather to outline
future challenges & opportunities and to open a small window into a huge emerging market / revenue potential.
Based on previous industry performance and global developments in travel and tourism, a conservative estimate predicts that the
youth and student travel market will reach 300 million arrivals by 2020 and represent US$320 billion in market value. The travel
industry has changed dramatically and market leaders need to transform to remain relevant, providing a new value to digital
natives that independently organise their travel with spontaneity, flexibility and freedom.
Price policy is key for your success! Aim for an on-going value creation, delivered at lower price. Optimise your operations and
multiply your sales points.
Diverse in destinations and source markets is being observed the trend. BRIC and emerging countries are the markets that look
interesting for development and expansion and will define the industry, gaining increasingly more global market share. Don’t wait
for the future. The best way to predict the future is to create it. Unlock new market space to leverage your strong assets and
market position to disrupt the industry and ensure your create and invent the future of the industry.
Your mergers and acquisitions are to grow market share, not to lead to a changed market place. Your earnings are without top-
line growth and competition keeps coming increasingly from outside industry. And these are reasons why should you bother!
Young travellers do not want to listen, they want to be heard. Deliver a sustainable personalised experience and you’ll succeed.
Be Good. Be fair. Be decent. Make things that last.
15

17. References
IMAGES
Intro slide: http://www.listofimages.com/sunset-departure-aircraft-commercial-departure-
jet-red-sky-sunset.html
Slide 01: http://www.listofimages.com/sunset-departure-aircraft-commercial-departure-jet-
red-sky-sunset.html
Slide 02: http://www.wallsfeed.com/wallpapers/2013/01/Aircraft-Plane-Wing-
Sunset-720x1280.jpg
Slide 03: http://www.wallpapersas.com/wallpaper/sailing-ship.html
Slide 04: http://www.leaflanguages.org/folium-the-ultimate-guide-to-traveling-when-youre-
broke-via-lifehacker/
Slide 05: http://www.wallpaperbe.com/wallpaper/australia-ocean-beach-pool-evening-
sunset-red-sky-clouds.html
Slide 06: http://wallpapersus.com/sunset-beach-beautiful-clouds-nature-reflection-sky-
summer-sunset-waves/
Slide 07: http://wallpaperskd.com/wallpaper/turtle-island-in-yilan-taiwan/
Slide 08: http://www.wallpapersas.com/wallpapers/2013/02/Clubbing-720x1280.jpg
Slide 09: http://wallpaperstock.net/freedom-and-
happiness_wallpapers_35452_1280x720_1.html
Slide 10: http://windows-8-wallpapers.com/wallpapers/bamboo-forest-canopy-windows-8-
wallpaper-1280x720.jpg
Slide 11: http://www.wallpaperbe.com/wallpaper/usa-california-san-francisco-golden-gate-
bridge-sunset-blue-ocean.html
Slide 12: http://www.wallpaperbe.com/wallpaper/thailand-paradise-scenery-seawater-
sunrise-bridge-house-sunlight.html
Slide 13: http://www.wallpaperbe.com/wallpaper/sunset-in-taipei.html
Slide 14: http://www.upphotos.net/france-paris-evening-sunset-people-sky-square-eiffel-
tower-30667.html
Slide 15: http://www.wallsfeed.com/airplane-clouds-flying-sunset/
References slide: http://www.layerbag.com/wp-content/uploads/2013/04/forest_1280.jpg
RESOURCES
Slide 01:
http://www.tuitravelplc.com/brand-experience/featured-brands
http://en.wikipedia.org/wiki/TUI_AG#History
Slide 02:
http://www.tuitravelplc.com/about-us/vision-values
Slide 03 – Data Source:
http://ara2012.tuitravelplc.com/sites/default/files/attachments/Business%20and%20financial
%20review.pdf
Slide 05 – World Youth Student & Educational Travel Confederation/IAS, 2011:
http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/the_power_of_youth_travel.pdf
Slide 06 – The Power of Youth Travel by WYSE:
http://issuu.com/ldaly/docs/wysetc-unwto-report-english_the_power_of_youth/1?e=0
Slide 11 – Blue Ocean Strategy:
W. Chan Kim, 2005. Blue Ocean Strategy: How to Create Uncontested Market Space and
Make Competition Irrelevant. 1 Edition. Harvard Business Review Press.
Slide 15 – Data Source:
http://ara2012.tuitravelplc.com/sites/default/files/attachments/Business%20and%20financial
%20review.pdf