Tui wants to gain a foothold in Malaysia

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FrankfurtThe travel business Tui starts a close partnership with the airline Malaysia Airlines. The goal is to win tourists together in Malaysia. "Of course we are present in Malaysia as Tui, launching there cruises and offer flights there," said Frank Rosenberger, responsible for IT and new markets on the Tui board. Nevertheless, the name Tui is not so well known to the local customers. "Partnering with Malaysia Airlines helps us change that."

This Wednesday, the new cooperation will be officially announced in Malaysia. However, one has tried before, whether the idea works. "We did two rounds of testing and started the new offer on the website. The result surprised us all. Demand is high, "says Rosenberger. It's an expansion through the back door.

The complete offers from air travel and hotels run under the name Malaysia Airlines, the name Tui moves into the background. But that does not bother Rosenberger, because the "customers become our customers, use our offers."

Behind the partnership stands the big strategy "Tui 2022", which was announced by CEO Friedrich Joussen in 2017. The goal: The travel company wants to gain one million new customers for its own hotels and cruise ships by 2022 and thus achieve an additional turnover of one billion euros.

Among other things, the Rosenberger team has developed a new platform, the so-called Global Distribution Network (GDN). It makes it possible to quickly develop new products and integrate partners with the help of digital technologies.

According to Rosenberger, the project got off to a good start. "We launched the marketing platform for hotels. We are currently achieving a run rate of 200,000 customers per year. So we're getting closer to our goal, "he said, looking at the target of one million additional customers in 2022.

The partnership with Malaysia Airlines is, in the words of the Tui manager, an extension of the platform: "They put their flights into the system, we combine that with our holiday offers, such as Tui hotels or hotels of partners."

The project should be just the beginning

The business idea is basically simple. Tui has been bringing its European guests to distant holiday destinations worldwide for many years. Why not advertise customers there? Malaysia is a kind of pilot project here. Tui has maintained a close relationship with the country for about 45 years, so the election should not have been without reason for Malaysia.

But the project should be just the beginning. "The cooperation with Malaysia Airlines is a model for other countries," said Rosenberger. "Tui 2022" targets markets in South America, Southeast Asia, China, India. But there are also plans for European countries such as Spain or Portugal.

The new platform should make implementation very easy. A high degree of standardization makes it possible to involve new partners quickly and to bundle so-called packages for customers. "We signed the contract with Malaysia Airlines at the end of last year and went live for the first time at the end of June. This is a short time for a completely new product in the tourism market, "says Rosenberger.

Both sides want to benefit from the new cooperation. The platform is very flexible and helps to improve the average revenue and the capacity utilization for hotels as well as for the airlines, Rosenberger explains: "For this we can bring together free capacities in the airplanes and hotels at short notice. The dynamic package will then be priced according to demand, as one already knows from the aviation industry. "

The new business model could also benefit Tui's ability to mitigate fluctuations in the travel business. These had recently increased significantly. Vacationers decide more and more short-term, at the same time changes the popularity of certain holiday destinations much faster than in the past.

This complicates the planning for travel groups such as Thomas Cook or Tui. Added to this is the growing pressure from Internet providers, as more and more people put together their own travel.

That's why many investors turned their backs on the Tui share over the past few months. The paper lost nearly 45 percent of its value between the beginning of the year and the beginning of June. For several weeks, the course climbs again – also in the hope that the Group can initiate the trend reversal with its measures. Since June, the paper has gained around 19 percent.

More: The head of the tourism giant wants to increase profits with excursions and new room prices and digitize his company at the same time. Read the interview with Friedrich Joussen here.

(t) Tui (t) Malaysia (t) Malaysia Airlines (t) Travel (t) Holiday (s) Frank Rosenberger (t) Friedrich Joussen (t) Cruise (t) Tourism (t) Cooperation (t) Customer (t ) Rosenberger Hochfrequenztechnik (t) Thomas Cook Group (t) Frank Rosenberger (t) Tour Operators & Tourism (t) Aviation (t) Airlines (t) Regular Airline Companies (t) Hotels & Motels

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