Chief Executive's statement & interview
"Welcome to TUI Travel PLC's 2009 annual report. This year we have taken the step of putting our Annual Report & Accounts fully online reflecting our ongoing commitment to sustainable development and the fact that over 70% of our shareholders will be receiving it electronically this year. We hope you enjoy reading and hearing about TUI Travel's achievements."
Peter Long
Chief Executive TUI Travel PLC
- Introduction
- 1. What are the highlights of this year for you?
- 2. How are the different markets responding to the current economic climate?
- 3. What steps have you taken to further improve the Group's business performance?
- 4. How will your strategy and business model develop over the next couple of years?
- 5. How do you see the leisure travel market developing in the future?
- 6. What are the challenges TUI Travel is facing?
CEO's statement
We are very proud that TUI Travel is the world’s leading leisure travel company taking over 30 million customers on holiday each year. We have produced another good set of financial results this year, with a £45m increase in underlying operating profit to £443m and an improvement in underlying operating margin of 30 basis points to 3.2%.
Our performance is particularly impressive as it has been achieved in spite of the higher levels of cost inflation and the challenging economic backdrop, which has resulted in both higher unemployment and declines in consumer confidence in all source markets. The Group’s flexible business model and careful capacity management has meant we have been able to successfully manage the businesses through this difficult period. Our strong brands, together with ongoing product innovation and development, have also meant that we have continued to maintain market-leading positions and to deliver new holiday experiences for customers.
Climate change has been one of the most talked about topics this year and in the leisure travel industry it is without doubt one of the largest challenges we face. TUI Travel is the first major tour operator to commit to carbon reduction targets and I have met with business leaders to discuss the business community’s response to climate change. We will continue with our commitment to sustainability and strive to ensure that it aligns with our strategic priorities.
TUI Travel’s clear strategic goal is to create superior shareholder value by being the world’s leading leisure travel group providing customers with the widest choice of differentiated and flexible travel experiences to meet their changing needs. This year we have focused on delivering growth and shareholder value by growing our Mainstream businesses’ margins and building our portfolio of specialist businesses. We have made substantial progress in delivering both these targets and we are confident there is more growth to come.
Finally, all of our achievements this year could not have happened without the hard work and dedication of our 50,000 colleagues and I would like to thank them personally for their contribution.
Peter Long
Chief Executive
