At ITB Berlin 2013, not only TOs unveil their strategies. But they also come to find growth and niche markets, seek information on exploring new markets and ideas for innovative sales stratagems. One good example lies in travel technologies, as underlined by Messe Berlin COO, Dr. Christian Goke at the opening press conference: “ITB Berlin features the largest range of travel technology products anywhere in the world.”
This movement of giving information at the same time as collecting information and fostering thought leadership is perfectly highlighted in our interview with Chrisitan Clemens, TUI’s CEO – Germany – member of the group management board of TUI Travel, whose policies can be outlined in three points – customized products and services for unique holiday experiences, greater customer loyalties by using modern technologies, and outstanding value for money.
Christian Clemens tells ITB Berlin News how he manages two important roles at the company.
As CEO of TUI Deutschland I try to bring about progress in the business and improve profitability, but at group level I have central tasks to perform. For instance, the next steps of the expansion of differentiated products in our mainstream markets is my responsibility. What kinds of new products are emerging as top sellers, and what will be “hot” at ITB Berlin? The modern, sophisticated customer of today – and there are more and more of these – expects customized holidays that reflect a high level of individuality. We are creating hotel concepts such as Puravida for lifestyle customers and Viverde for people who like being out and about in nature. I anticipate that other holiday providers will become a part of this trend, and expect at ITB Berlin to see the biggest-ever range of targeted group products.
Tell us more about TUI’s changes to the so-called “mainstream sector” of the company.
Under the overall umbrella of the mainstream sector, we have the goal of further developing our integrated tour operating business for all countries. We want to consolidate our position as market leader and as a modern travel company and a modern mainstream provider. Our strategy has been developed from a customer perspective and is based on three basic pillars: customized products and services for unique holiday experiences; greater customer loyalty by using modern technologies, for example personalized booking, 360º hotel tours; and outstanding value for money.
How important are third-party sales, and how are channels evolving – for Germany, and for TUI in general?
The sales structure in Germany is quite different from that in other source markets. Whereas we sell our products in Scandinavia and the UK exclusively through our own sales channels – and increasingly through the Internet – in Germany the corresponding figure is about 35%. Third-party sales play a significant part here. We are dealing with strong, self-assured sales partners who have supported us very well over many years, and we cannot and do not want to do without them. But if market research is to be believed, in just two years, around 40% of tourism sales in Germany will be via the Internet, and we have to adjust to that.
Last year we saw several management changes at TUI. Why were these changes made?
Each change in management was made for very different reasons, so I can speak only for Germany. Based on the sales volume, the German market — alongside that of the UK — is the biggest and most important for the entire TUI Group. Profit on sales in Germany, however, is only half that of the UK. Therefore, my assignment, among other things, is to further improve the margins, which is not easy because the background conditions in Germany are totally different to those for example in Scandinavia or the UK. Nevertheless I am convinced that in the not too distant future we will have a return on sales of at least 3%.
ETurboNews is a media partner for ITB Berlin.
