Tui seeks ‘low-risk’ model through selling seats on other airlines’ flights

Tui, Europe’s largest travel operator, has outlined plans to sell more seats on other airlines’ aircraft, betting on a “low risk” model to generate growth amid fears of a dent in consumer confidence. Tui has traditionally sold flights on its own planes or bought seats in bulk from other airlines to sell on to consumers through its package holidays. But the German group told the Financial Times it would expand so-called “dynamic packaging deals”, having made partnerships with airlines including Ryanair and easyJet in the UK. The arrangements allow consumers to choose from a range of providers’ flights and hotels when booking trips. CE Sebastian Ebel said he was keen to agree such arrangements with more airlines. He hoped to roll out the approach — similar to those of online travel agents such as Booking.com and Expedia — in the Nordic countries, Spain and the Americas. Tui’s cautious approach comes as it navigates uncertainty in the travel sector, amid more unstable travel demand. “The reason why we have been more conservative on the capacity was because we anticipated that there was maybe more risk capacity growth than the market growth,” Ebel said. There was a “good opportunity” to grow with a low-risk model, he said, pointing out the high costs of growing via its traditional routes. “If we put another aircraft . . . it’s a E30mn, E50mn investment,” he said. While few major airlines have reported a dent in demand for travel, there are some signs that customers have become more price-conscious. In a recent European travel survey by AlixPartners, 67% of consumers said they intended to spend the same amount or more on travel in 2025 than they did in 2024. But almost half of respondents claimed to have less money to spend this year.<br/>