Tui

Table 8: TUI’s current capabilities using McKinsey 7s
Strategy Staff
8.1 Follow an end to end product offering for the customers to 8.9 Training and Mentoring employees to provide best customer
provide an overall Travelling experience (1) satisfaction.
8.10 Talent acquisition to improve on their existing services and
Structure boost customer sales.
8.2 Distributed in mainly three regions (2) 8.3 Flat Hierarchy 8.11 Improved communication between the higher
system (2)8.4 Different domains for services provided like management and the employees, high transparency.
Airlines, Hotels, Cruise, Innovation & Sustainability.(2)
8.5 They come together to create the all in one product for the
customer.(2)
Skills
8.12 Addition of skilled professional to provide insights and
proper feedback to enhance their services and provide better
customer satisfaction.
System Style
8.6 Having a team of skilled and professional employees to 8.13 The company relies on division of work according to their
provide excellent services domains.
8.7 Setting up researching and development team to research 8.14 They have an open and democratic leadership style to
for better sustainable options to improve on their existing allow employees proper communication channels.
services. 8.15 Innovating and researching on new techniques and
8.8 Monitoring the daily processes to improve on the feedback. methods to improve sustainability.
Shared Values
8.17 Their strategy to provide a special and unique experience
to their customers while making the effect on the environment
to a minimum. (3)
8.18 Maximize profits for the local vendors and provide a more
sustainable and engaging experience for the customer (3)
Table 9: STEEPLE model
Social Economical
9.1 Ecotourism: The need for ecotourism has been on the rise
and TUI provides on the best ecotourism packages. 9.8 Economic Growth: The tourism industry constitutes of 9% of
9.2 Lifestyle Change: The way people travel having been the overall GDP of the world.
changing since the late 1990s, they want a more luxurious well 9.9 Investments: The company plans to invest more funds in the
as meaningful travel. next phase till 2020.
9.10 The fluctuating rate of pound due to economic factors of
the market
Political
Technological 9.11 Brexit: This has impacted in the costs going up and
9.3 Digitization: In the modern era it is important to use the unemployment rates to increase too. Tax rates from The EU
new world technologies to reach people and use them to have also been adversely affected.
market and improve their operational process as well. 9.12 Different Tax Rates: Due the global reach of the company
9.4 Online Booking: Booking online provides more facilities to the political and economic factors in those regions cause
the customers within the comforts of their homes and offices. fluctuations in the market.
9.5 Social Media: Using the social media platforms to promote Ethical factor
and market the business and attract new customers. 9.13Sustainable: The company aims to make its services be
more environment-friendly and innovative
Environmental
9.6 Climate Changes: The changes related to the climate affect
the tourism industry the most. They can cause a lot of loss for
the company due to cancellations.
9.7 Carbon Footprint: The organizational processes of the
company need to be in the safe limits and follow governmental
policies.
Table 10: Four Challenges Faced by TUI
1. Sustainability: To have a better working model and a 2. Climate Change: Climate factors are very essential for the
sustainable growth for the future of the company. The company tourism industry. It is an important challenge that TUI needs to
needs to implement adopt services which are efficient and have overcome or mitigate in order to provide better services. The
low negative impact on the environment. They need to train unpredictable nature of the challenge makes it impossible to
their employees and vendors to adopt the same technologies. completely overcome it. Steps to monitor the climate changes
They need to utilize the local resources and help them grow as and have precautions in place can help the customers feel safe
well to increase the sustainability. Providing excellent customer and be inclined to choose TUI. They need to have better weather
service will create better customer satisfaction and better guidance equipment on their Jet planes, cruise ships to avoid
goodwill of the company. The have been adopting new any damages. Climate can play a pivotal role and need to be
technologies and innovations to improve the market and make monitored in the tourism industry for safe travels of the tourists.
it sustainable for the world.
3. Digitization: Digital presence is important for any company on 4. Acquisitions

the modern era. TUI Faces the challenge to make and audience TUI provides an end-to-end in house services like the mode of
on the digital platforms. The fastest and the cheapest way to transportation ( Planes & Ships), accommodation (Hotels &
market their products and services are via digital marketing. Guest Houses) and ground services like tourist services ( food
They can offer discounts and offers to their digital customers to and city tours) for the customer. They need to keep adding more
attract them to book online .Customers prefer to book inline companies to their group to increase their world class services.
and get notified via these mediums. Hiring professional blog They need to attract better partners and investors to provide
writers and photographers to showcase their targeted tourist them funds for the mergers and accusations. They also need to
destinations will help them provide vital information to their have a quality recruitment process to acquire best talents in
customers. technological and mechanical field to improve on the product
quality.
References
1. https://www.tuigroup.com/en-en/about-us/about-tui-group/strategy
2. https://www.tuigroup.com/en-en/about-us/about-tui-group
3. https://www.tuigroup.com/en-en/responsibility/sus_business

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What are the four challenges faced by TUI?

What factors are considered under STEEPLE analysis for TUI?

Table 8: TUI’s current capabilities using McKinsey 7s

Table 9: STEEPLE model

Table 10: Four Challenges Faced by TUI

3. Digitization: Digital presence is important for any company on 4. Acquisitions

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