TUI is buying Hotelbeds' Destination Management for $136 million.
The acquisition includes three leading global brands: Destination Services, Intercruises and Pacific World and continues TUI's plans to grow its in-destination market.
"The global market for these services is growing," said TUI CEO Fritz Joussen. "Four factors put TUI in an extremely good starting position: our strong international brand, the trust of 20 million customers, the trust of the destination countries through decades of presence and, most importantly, our world-class IT and CRM systems, in which we have invested in recent years."
This new division will become part of its Spanish subsidiary, TUI Destination Services. It gives TUI the ability to handle excursions, transfers, tours, and activities as well as offers handling for cruise companies in ports. The acquisition will make TUI a supplier rather than a customer to cruise companies, including TUI Cruises, Hapag-Lloyd Cruises, and Marella Cruises.
"The TUI brand guarantees the usual premium service, TUI quality and TUI comfort despite the multitude and complexity of leisure offers and providers at the holiday destination," Joussen added. "Our IT and CRM systems guarantee that our guests will only receive offers that are relevant to them. And they get them directly from us, not from third parties. Advice, booking, flight, hotel and leisure activities at the resort come from a single source. The customer has one contact person, that is TUI."
The Destination Management Division of the Hotelbeds Group is currently active with 2,600 employees in 25 countries, including Italy, Croatia, Mauritius, South Africa, Australia, Canada as well as many Asian countries.
Hotelbeds will continue to focus on its wholesale accommodations businesses.
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