TUI defends package holidays as the “gold standard” of travel in a period of uncertainty
TUI Group, one of Europe’s largest tourism groups, says that package holidays remain the foundation of its business, despite changes in the way travellers search, compare and book holidays. In its latest announcements, the company stresses that demand for organised holidays cannot be viewed only through the number of early bookings, because some customers in a more unstable environment decide later, choose destinations more cautiously and rely more on the security provided by an integrated service. According to TUI, in such circumstances the package holiday retains the status of a product that offers travellers price predictability, assistance in the event of disruption and clearer responsibility on the part of the travel organiser.
The company’s original message comes at a time when the tourism sector is simultaneously recording a strong desire for travel and sensitivity to geopolitical risks, air transport costs and changes in consumer habits. In April 2026, TUI announced that it expected a better operating result in the second quarter of the 2026 financial year compared with the same period of the previous year, but at the same time lowered expectations for the full year due to the war in Iran and consumer caution. According to that announcement, in March the group had around EUR 40 million in costs related to repatriations and operational disruptions, and around 10,000 guests were returned from affected markets and itineraries. The company also stated that uncertainty about the duration of the conflict reduces short-term business visibility and affects customer decisions.
A change in bookings does not mean weaker interest in holidays
TUI’s assessment of package holidays comes after a period in which booking patterns changed visibly. Travellers increasingly combine digital research, apps, price comparisons and advice from travel agents, while sometimes making the final decision later than before. This does not necessarily mean that travel is being abandoned, but that decisions are postponed until the security, financial or family situation becomes clearer. In such an environment, tourism companies must manage capacities, prices and destination offerings more carefully, especially when demand shifts quickly from one region to another.
According to TUI’s financial announcements, consumers still set aside money for holidays, but they are more sensitive to risks and the value they receive for the price paid. In the 2025 financial year, TUI recorded 34.7 million guests, five percent more than a year earlier, while revenue rose to EUR 24.2 billion. The company also announced a record level of underlying EBIT, or operating profit adjusted for certain items, of EUR 1.46 billion at constant exchange rates. Such data show that travel has not disappeared from the list of consumer priorities, but that the way it is purchased is changing under the influence of prices, uncertainty and digital habits.
TUI also points out that the package holiday is not the same product it was ten or twenty years ago. The classic model, in which a pre-assembled flight, hotel and transfer are sold to the customer, is increasingly being complemented by dynamic packaging, personalised recommendations, additional excursions, apps and a more flexible choice of services. According to the group’s strategic documents, TUI wants to develop a central customer ecosystem in which travel is not seen merely as a booking, but as a series of touchpoints before, during and after the holiday. In this way, the package holiday is being adapted to a market in which customers want both the security of organised travel and the freedom of independent choice.
Geopolitical risks bring the emphasis back to security and support
The biggest test for such a model comes in crisis situations, when disruptions in air traffic, route closures or security risks can quickly change the plans of thousands of travellers. In its announcement of 22 April 2026, TUI stated that, after the start of the conflict in the Middle East at the end of February, guests from European departure markets and passengers from the Mein Schiff 4 and Mein Schiff 5 ships were repatriated. According to the company, those two ships remained in the ports of Abu Dhabi and Doha, and itineraries were cancelled until mid-May 2026. Such examples explain why tourism groups present the package holiday as a safer framework than a completely independently arranged trip.
In the event of disruption, a customer who has booked an integrated arrangement generally has one contact for the flight, accommodation, transfer and changes to the plan. This does not eliminate all risks, but it reduces the number of parties with whom the traveller must negotiate independently when a cancellation or route change occurs. TUI therefore describes the package holiday as a product that has added value in turbulent times, because it includes operational infrastructure, customer support and the possibility of faster capacity reallocation. Such a message is especially important in years in which weather extremes, strikes, geopolitical tensions and disruptions in air traffic can affect a holiday even before the trip begins.
The European legal framework also gives special weight to package holidays. Under European Union rules on package travel, travellers have certain rights when buying a combination of travel services, including clearer information before concluding the contract, the organiser’s responsibility for the performance of the package and protection in the event of insolvency. In its consumer information, the European Commission states that package travel includes at least two different types of travel services for the same trip, for example transport and accommodation, when they are sold under conditions that form a single package. Precisely this legal certainty is one of the reasons why package holidays can regain importance in uncertain periods.
TUI lowers expectations, but does not abandon long-term growth
Although TUI defends the strength of package holidays, the latest financial announcements show that even the largest travel organisers are not immune to external shocks. In April 2026, the company announced that for the 2026 financial year it expected underlying EBIT in the range of EUR 1.1 to 1.4 billion, while the earlier forecast had predicted growth of seven to ten percent. At the same time, the revenue forecast was suspended until conditions stabilise. According to TUI, the goal is to come close to the operating profit level of the previous year, supported by the transformation of the Markets + Airline segment and growth in cruises.
Such a lowering of expectations does not cancel out the good results from the previous financial year, but it shows how exposed the tourism sector is to events beyond companies’ direct control. Fuel prices, changes in air routes, security assessments and consumer sentiment can affect profitability in the short term, even when basic demand for holidays is stable. In its official materials, TUI states that cruises, hotel brands and experiences are important sources of growth, while a transformation focused on more efficient operations is being implemented in the Markets and Airline segment. According to the group’s strategy, the goal is to reduce costs, expand distribution and increase the share of differentiated products.
For travellers, this process may be reflected in a greater choice of arrangements, more digital options and stronger reliance on apps during travel. For travel agencies and partners, it means continued adaptation to the way customers research travel: some still want personal advice and a point of sale, while others expect to complete the entire process via mobile phone. In its annual materials, TUI emphasises that it is not abandoning physical sales, because travel agencies often sell higher-quality holidays booked earlier. At the same time, it is developing digital channels, artificial intelligence and content that can be found more easily on new platforms for searching and planning travel.
Artificial intelligence and apps are changing the path to booking
The change in customer behaviour does not relate only to when a trip is booked, but also to where the holiday decision begins. In its strategic documents, TUI states that artificial intelligence is changing travel search, because some users are moving from classic search engines to tools that provide personalised answers and suggestions. The company therefore wants its content to be visible and bookable in environments where users seek recommendations, compare hotels or plan more complex trips. This includes the development of digital content, reviews, photographs, videos and partner solutions that can lead the user to a booking.
For the tourism industry, this is an important change because competition is no longer only about the price of the arrangement, but also about the moment when a brand enters the decision-making process. If a user starts planning a trip through an app, chat tool or social network, traditional sales points and web search engines are no longer the only entry point into the purchase. TUI is therefore developing an approach in which the package holiday remains the main product, but a broader digital system is built around it. In it, the user can get inspiration, compare accommodation, add an excursion, track a transfer or receive a notification during the stay.
Such an approach also has business logic. A company that maintains contact with the traveller throughout the entire trip has a greater possibility of additional sales, renewed engagement and collecting feedback. But at the same time it must maintain trust, because in times of crisis travellers do not buy only a destination, but also the feeling that someone can take responsibility if circumstances change. That is why TUI’s message about package holidays as the “gold standard” does not refer only to nostalgia for traditional tourism, but to an attempt to combine the security of organised travel with digital flexibility.
What this means for the organised travel market
The broader consequence of TUI’s message is that package holidays are being repositioned as a response to uncertainty, not only as a cheaper or simpler option for a summer holiday. In a period of rising prices and frequent disruptions, customers increasingly compare total value: price, protection, possibility of change, reputation of the organiser and availability of assistance. In that sense, an organised holiday can also be attractive to travellers who otherwise put trips together independently, especially when they go to more distant or operationally more complex destinations. On the other hand, tourism companies must prove that a package does not mean rigidity, but a combination of security and choice.
For competitors such as online travel platforms, airlines and hotel chains, this means a continuation of the fight for the same customer, but with different arguments. Independently putting together a trip can offer flexibility and sometimes a lower price, while the package holiday organiser emphasises protection, logistics and support. TUI’s strategy shows that the boundaries between these models are increasingly blurred: the group wants to be both a holiday organiser, and a digital platform, and an owner or partner in hotel, cruise and excursion products. Precisely vertical integration, according to the company’s official documents, remains one of the main elements of its competitive advantage.
Ultimately, the discussion about package holidays is not only a matter of tourism marketing, but an indicator of the entire industry’s adaptation to changing consumer behaviour. TUI publicly acknowledges that bookings and sales channels are changing, but claims that the basic need for a safe, organised and price-predictable holiday remains strong. The latest financial forecasts show caution due to geopolitical disruptions, while the results from 2025 confirm that demand for travel still has a solid foundation. Package holidays are therefore likely to remain an important part of European tourism, but in a form that will increasingly include personalisation, digital support and faster adaptation to market changes.
Sources:
- TUI Group – financial announcement of 22 April 2026 on expectations for FY 2026, the impact of the war in Iran, repatriations and the lowered forecast (link)
- TUI Group – report on results for the 2025 financial year, revenue, number of guests, EBIT and business strategy (link)
- TUI Group – strategy and description of the business model, vertical integration, digital channels and development of the customer ecosystem (link)
- TUI Annual Report 2025 – strategic priorities, transformation of markets and airlines, and the role of artificial intelligence in search and bookings (link)
- European Commission – information on travellers’ rights in package travel and linked travel arrangements (link)
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