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
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