TUI Group, CEO, Marco Ciomperlik at the CAPA Airline Leader Summit World 2024

Transcript

Marco Ciomperlik:We have a great year, right, just accomplished. Our numbers will go out in December. So we are really looking forward to '25, of course, to continue this trend. As you said, the growth really continues in our view. And this is something which, let's say, fuels, of course, our engines, especially in the leisure sector. There is higher competition in the leisure sector. Obviously, this is one of the big growth sectors given that business travel demand is not there yet where it has been. But this, of course, is always healthy for the business. The landscape is richer than in the past. I fully agree with you. When we look at European leisure travel around the Mediterranean, Then, of course, there are a lot of competitors there. So the challenge we have then, of course, we are quite settled. We have a huge base of customers, obviously, given our integrated model. But what we're looking forward to is that we, let's say, create more optionality for our customers so that we have higher frequencies in the future, that we have more routes in our offering. And this is something, of course, differentiator as well in the product that we can provide along the whole customer journey from the start at the airport or even from the booking to the hotel and back, let's say everything out of one hand. I think we have seen certainly the revenge travel in the last years, but as COVID is behind us, I think this revenge travel term is behind us now as well. We've seen already this year that we have, let's say, to a certain extent, normalized growth. Right. The average, let's say, yields have increased. But of course, the costs were quite hard in terms of increasing as well. And we have seen that when we look forward, then I personally think that given, let's say, a steady geopolitical situation and nothing big, let's say, comes alongside, then we will see further growth even next year. But we won't see it, in my view, In this, let's say, dimension what we have seen in the past, and the volumes will be there. I think margin we need to see how especially the cost will develop. What we will do is that we from a TUI airline point of view that we will commercialize the airline more so that we create a setup within TUI where we create kind of a profit center for the airline, and then of course create something which moves more in the direction of commercialized flights, having more influence on the route network. Looking at it more from a European basis to utilize the full power of our whole fleet.

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