As European demand slows, TUI seeks to attract Chinese and American travelers while offering cheaper vacation options in Eastern Europe
Feb 27, 2025
TUI, Europe’s largest travel company, is expanding its reach and adapting its offerings to attract new markets and adapt to changing travel trends. The company plans to lure vacationers from China and the United States to its new hotels in Asia, while appealing to budget-conscious European travelers with cheaper destinations in Eastern Europe. The strategic shift comes as TUI faces slowing European demand and increased competition from newer travel providers such as easyJet, BA and Airbnb. The company is also focusing on diversifying its business to offset risks by expanding beyond its traditional markets.
Key takeaways
- TUI is focusing on attracting Chinese and American tourists to new hotels in China and Southeast Asia;
- The company plans to open 22 new hotels in China and Southeast Asia over the next three years;
- TUI is also targeting budget-conscious Europeans by offering affordable holidays in Eastern Europe as inflation and cost increases affect popular destinations such as Turkey;
- In response to changing consumer preferences, TUI is offering more “dynamic” holiday packages and targeting travelers looking for cheaper, shorter stays;
- The company is investing in marketing, new hotel development and experiences for locals in markets such as the UK and Germany;
- Competition from newer travel businesses, such as airlines and home-sharing platforms, is intensifying;
- TUI is adapting by responding to travelers’ demand for value-for-money holidays and shorter stays.
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