TUI to close or sell all its French travel agencies
TUI is to close its entire network of 70 travel agencies in France where it will also weed out some of its least profitable brands.
As part of its ongoing repositioning, TUI said that in future in France it will focus on high-margin business with a few core brands.
It said this should enable TUI France to break even from 2021.
"Offers that are high-volume but do not generate sufficient margins are removed from the portfolio. As a result, TUI France’s business volume will decline," it said in a statement.
"As a result of the newly tailored product range and the changed distribution model, the company will be significantly leaner."
The shops are to be closed or sold. If all are closed, there will be 583 job losses, which is approximately 60% of the TUI France staff base.
The changes are now being discussed with the relevant committees and employee representatives in France.
TUI France was already loss-making before the pandemic.
"In a structurally challenging market with a high cost structure and low margins, the company had been making losses in recent years," said the Group.
"In the wake of the corona pandemic, the situation for TUI France has again deteriorated significantly. A far-reaching package of measures is now needed to create a perspective for the company within the Group."
In May, TUI announced that as a consequence of the corona crisis, all business operations would be reviewed. Subsidiaries and regional entities that had been loss-making in recent years should be restructured, it said.
Overall, the TUI Group aims to reduce its overhead cost base by 30% worldwide.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026