TUI Eyes Further Acquisitions

In a TUI Travel trading update, TUI Travel has claimed future acquisitions for the merged travel companies remain a “key priority”. The combined group of Thomson and First Choice purchased nine travel companies in the summer at a total cost of more than £81 million. Future acquisitions could target the Asia Pacific, online firms, adventure holiday specialists and companies that book trips for American students.

In the trading report, TUI Travel reported that trading was on track for the year, but that UK holiday capacity was going to be cut by a tenth.  Created from the merger of Thomson holidays and First Choice, TUI added that it was confident of achieving £100 million worth of synergies from the merger over the next three years.

TUI Chief Executive Peter Long said: “Our acquisition pipeline remains strong and I am delighted with the acquisitions we have completed. Acquisitions remain a key priority for TUI Travel.”

In other news, TUI Travel is also considering abandoning its low-cost airline TUIfly. Finance Director Paul Bowtell stated: "The simple answer is yes it is being reviewed…"I think it's clear for all to see that that decision, together with incremental capacity in that source market in 2007, hasn't been successful."

TUI is in the process of a strategic review, of which decisions are to be revealed by January.