TUI’s headcount has already decreased by 11%. The global realignment program aims to reduce the company’s cost base by 30% for the group.
Following the news that TUI has announced a group loss of 740.5m euros (US$802m) in its Q2 results and that 8,000 potential job roles are now at risk,
Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers her view: “Potential job cuts have without doubt been spurred by COVID-19 as losses have soared. However, these cuts are part of a wider operation to streamline and digitize operations.
“TUI’s headcount has already decreased by 11%. The global realignment program aims to reduce the company’s cost base by 30% for the group.
“In a global survey by GlobalData, 48% of travelers are spending more time, if not every day, browsing social media. After a long period of increased browsing time, post-pandemic this will likely influence travelers to book online independently, rivaling the traditional in-store agency model.
“Operators with high fixed costs such as in-store agents where rent has to be paid are already at a disadvantage in comparison to online travel agents. The future travel space may see TUI take a move to digitize operations moving gradually further away from the traditional travel agent to cut costs, but also effectively service the needs of the future traveler”.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
