fvw Workshop Athens 4 May 2012

Aktiengesellschaft
fvw Workshop Athens 4 May 2012
Günter Ihlau
Member of the Board DRV ( German Travel Association)
Director International Relations TUI AG
Tourism has seen a tremendous change in recent years
Tourism 1950
Tourism 2011
~25 million international travellers
~900 million international travellers
Mainly domestic holidays
Global travel
TUI AG | Athens May 2012 | Page 2
Fundamental changes in customer behaviour
Consumer trends
European demography 2000-2011
1
Flexibility & Choice
Children
Polarisation
Young & Fun (15-24)
Value for money
Family
(25-44)
4
Differentiation &
Specialisation
(G)oldies
(45-64)
+14%
5
Environmental
awareness
Seniors
(65+)
+14%
(0-14)
-8%
2
3
+1%
-9%
TUI AG | Athens May 2012 | Page 3
Impact of demographics
Holiday type
Growth potential
Cruise
Ocean, river
Well-being & Health
Life experience
Round trip, soft adventure,
activities, city trips
Residential
Long-term stay, holiday home
service apartments
Sun & Beach
TUI AG | Athens May 2012 | Page 4
Competitive environment:
Online distribution
Development of European online tourism - in € bn -
Online pattern
+15%
+18%
+22%
+27%
+37%
+47%
83,5
72,3
Direct access to suppliers
New entrants
61,3
Web 2.0
50,1
- Buy
39,3
- Learn
+54%
28,6
+65%
- Experience
19,5
12,7
7,7
2002
2003
2004
2005
2006
2007
2008
2009
2010
TUI AG | Athens May 2012 | Page 5
Competitive environment:
Challenges for the destination
New destinations – New concepts – New capacities
Hotels
Residential
Cruise
TUI AG | Athens May 2012 | Page 6
Destinations with ambitious growth plans
National guest development scenarios
Dubai
2005
6.2 m
2011
10 m
Turkey
2005
21.1 m
2011
28 m
Egypt
2005
8.6 m
2014
14 m
Greece
2005
14.8 m
Source: FVW, National Tourist Offices own statements, Euromonitor
2011
13.5 m
TUI AG | Rhodes April 2011 | Page 7
Greece and TUI belong together
TUI Hotels
TUI Airlines
> 2 million
guests
5 European airlines
Flights from D, UK, NL, B, S
21 Greek destinations
Greece, TUI’s
3rd largest
destination
country
TUI Group
No. 1 tour
operator for
Greece
8 hotel brands
48 hotels
~25,000 beds
(including Pura Vida and Sensimar)
TUI AG | Athens May 2012 | Page 8
Optimal coverage of target group needs & wants
One Location – Four Conceptions
1 Wellness Luxury Hotel
Wellness, entertainment, families
1 Classical Boutique Hotel
Tranquility, service, spoiling
1 All Inclusive Resort
Value for money, kids care, entertainment
1 Club-Hotel
Sports, entertainment, socialising
TUI AG | Athens May 2012 | Seite 9
Greece with an outstanding tourism image
Market study “European Travel Attitudes” – Most attractive destinations worldwide
10%
Greece 1st
20%
30%
40%
50%
60%
67%
28 destinations:
% of respondents who
find the destination “very
attractive“ or “attractive“
Source: TUI “European Brand and Strategy Survey 2006”
TUI AG | Athens May 2012 | Page 10
Further growth potential through performance features
Destination image study – Image profile Greece
70%
Sights
80%
90% ... positive or very positive evaluation
Basis of success
Landscape
Hospitality
Food
Security
Value for money
Entertainment
Accommodation
Performance features
Service
Source: TUI survey „Destination Images“
TUI AG | Athens May 2012 | Page 11
Type of holiday Greece
City
2%
Other
13%
Round trips
14%
Sun & Beach
71%
Source: European Travel Monitor
TUI AG | Athens May 2012 | Page 12
Greeks major chances are offside the low cost carrier routes
2001
Source: hlx
Development Low Cost Carrier Connections
TUI AG | Athens May 2012 | Seite 13
Growing competition among destinations
Core Mediterranean Destinations: Guests Needed vs. Guests Projected
Tourists in Thsd.
85.000
80.000
17 Mio.
75.000
+5,0% p.a.
to reach occupancy
rate of 2001
70.000
Supply*
65.000
60.000
+3% p.a.
Demand**
55.000
+4% p.a.
50.000
2001a
2002a
2003a
2004
2005
2006
2007
2010
* Pax needed to fill total expected bed capacity at 2001 occupancy rates
** Own growth rate estimates based on WTO and ETM figures
Sources: Official sources, mainly Ministries of Tourism etc.; Press articles; Incoming Agencies Estimates
TUI AG | Athens May 2012 | Page 14
Differentiation is key
TUI AG | Rhodes April 2011 | Page 15
Thank you for your attention!
TUI AG | Athens May 2012 | Page 16