10 reasons to invest in TUI Travel PLC

Our management team has a track record of delivering long term growth whilst managing the business through significant changes in consumer demand. We have real strength and depth throughout our management teams across the organisation. See Our Colleagues.

We have some of the most recognised and highly trusted brands in the industry, which drive customer retention, reduce the cost of customer acquisition and are attractive to our accommodation providers and distribution partners. See Distribution & Brands.

In the Mainstream Sector we are either the number one or number two positioned tour operator in almost all of our source markets, including the UK, Germany, France, Belgium, the Netherlands and the Nordic countries.

Consolidation in some of our key markets has improved the structure of the industry and has reduced the risk of profit volatility historically driven by oversupply of capacity.

We buy over 150 million bednights per year, making us one of the largest distributors of accommodation globally. Our scale gives us a competitive advantage when negotiating with suppliers, allowing us to offer excellent value to our customers.

The inherent flexibility of our model means that we are able to carefully manage our capacity to react to changes in demand, reducing the volatility of our profitability through the cycle.

We have identified £200m of synergy benefits as a result of the merger in 2007 and are highly confident of achieving this target. By 2009, we had delivered £120m of synergy benefits and have £80m still to come. See People & Operational Effectiveness.

Since the merger, we have successfully executed a number of strategic actions to improve margins in underperforming businesses including our scheduled flying operations in the UK and Germany and our Canadian tour operator. We have a number of businesses where margins continue to be diluted by strategic and business model issues and solving these represents an opportunity for substantial future margin improvement.

In excess of one-third of our profits are generated by our portfolio of niche specialist businesses which enjoy high organic growth and margin characteristics and often display counter-seasonal profitability. Growth in these Sectors is augmented by our highly successful acquisition strategy, where we identify new market niches and build substantial market positions. This portfolio of businesses is unique and cannot be replicated, representing a clear differentiation from our competitors. See Product & Content.

We have an existing presence in the four major emerging markets of Russia, Brazil, China and India. The growth potential of these markets is substantial and we are well positioned to take advantage of this, particularly in Russia. See Growth & Capital Allocation.