German-GreekCham berofcommerce AnnualM em berconference Athens,20.09.2006 Greece Fitforthe Future oftourism Dr.MichaelFrenzel CEO,TUIAG
TUIdrivestwo pillarstrategy 1 Tourism 2 Shipping 14,1 bn turnover 3,8 bn.turnover 50.500 em ployees 9.100 em ployees Mission:Travel.Transport.Worldwide.
Globalleaderin tourism industry TurnoverTourism 2005 -in bilion Euro - 14,1 Carnival 8,9 63% Thom as Cook 7,7 54% MyTravel REW E 4,3 4,2 30% 30% in com parison to TUI FirstChoice 3,8 27% Kuoni Expedia 1,7 2,4 17% 12%
No.1 Position in Europe s largestsource m arkets 1st Germany UK France Netherlands Austria Ireland 2nd Nordic countries Belgium Hungary Poland 3rd Switzerland Slovenia New m arkets Italy Spain Slovakia GlobalPlay China Russia India
Integrated tourism strategy Retail Tour Operator Airline ca.3.400 TravelAgencies 75 Brands 123 Aircraft Broadest multi-channelnetw ork with 50 bookablewebsites and 55 cal centers Unique custom er interface with 22 milion guests Largest short-/ medium haulfleet with 67 bilion seatkilom eters Destination Service 35 Incom ingagencies Huge custom er service netw ork with 5,000 reps Hotel 279 Hotels Leading globalresort group with 165,000 beds
European marketsback on the grow th path European organised holiday m arket -in milion trips- 130 128 124 129 135 142 147 2000 2001 2002 2003 2004 2005 2006e
European online travelm arketcontinuesstrong growth European online travelm arket -turnoverin bilion Euro - +38% +45% 57,2 +49% 41,6 7,7 +65% 12,7 +51% 19,2 28,6 2002 2003 2004 2005 2006e 2007e
TUIalso online in leading positions Top 5 Online TravelCom panies -m ilion unique visitors/m onth- Expedia 22,2 TUI 4,6 TUI 15,1 Expedia 3,3 Lastminute 12,1 Thom as Cook 1,5 Priceline 9,8 Opodo 1,4 Thom as Cook 6,5 AIDU 1,3
Rapid structuralchange of the m arket Expected developm ent of travelmarket structure -in milion trips - 450 400 350 ~ 35% Package 300 250 45% DIY 200 150 6% ~ 30% Modular 100 50 49% ~ 35% Nonorganised 0 1970 1980 1990 2000 2010e
Greeksm ajorchancesare offside the low costcarrierroutes 2001 Developm entlow CostCarrierConnections 2005
Greece and TUIbelong together TUIAirlines TUIHotels > 1,7 Mio. Guests fly.com Hapagfly Thom sonfly Jetairfly TUIflyNordic Arkefly 5 European Airlines 6 HotelBrands Flightsfrom D,UK,NL,B,S 21 Greek Destinations Greece TUI s 2nd largest destination country TUIGroup No.1 tour operator for Greece 34 Hotels ~20.000 Beds
Greece with an outstandig touristicim age M arket Study European TravelAttitudes M ost attractive destinationsworldwide Greece 1. 10% 20% 30% 40% 50% 60% 67% 28 Destinations: % ofrespondentswho find the destination very attractive or attractive
Furthergrowth potentialvia perform ance features Destination Image Study Image-Profile Greece Sights Landscape 70% 80% 90%. positive orverypositive evaluation Basis of Success Hospitality Food Security Price Value Entertainm ent Accommodation Service Perform ance Features
Hard com petition am ong destinations New Destinations New Concepts New Capacities Hotels Holiday hom es Cruise ships
Differentiation iskey
Optim alcoverage oftargetgroup needs & wants One Location Four Conceptions 1 WellnessLuxury Hotel Welness,entertainm ent,fam ilies 1 ClassicalBoutique Hotel Tranquility,service,spoiling 1 AllInclusive Resort Value form oney,kidscare,entertainm ent 1 Club-Hotel Sports,entertainm ent,socialising
Image cam paigns and supporting m arketing actions Image Cam paigns GNTO Supporting Marketing Actions TUI 2005 2006
Targetgroup specificmarketing Honeym ooners Couplesw/o kids Villas Connoisseurs
Looking forward to the future Together!