Skift Take
TUI is using some of the cash it amassed from selling companies such as Hotelbeds to buy a business from ... Hotelbeds. Maybe its taken a bit of time for the management to realize that tours and activities are strategic and a potential growth area.
TUI Group said earlier this year that it wanted to grow its presence in the in-destination market and it hasn't taken the company long to make good on that promise.
The Hanover-based firm is paying Hotelbeds Group — a business TUI used to own — $136 million (€110 million) for its destination management unit.
The division will become part of its Spanish subsidiary, TUI Destination Services, while Hotelbeds will concentrate on its wholesale accommodations businesses.
In addition to excursions and transfers, tours and activities, the division also offers handling for cruise companies in the ports. The latter will become even more important for TUI over the coming years as it adds to its cruise fleet.
"The global market for these services is growing. Four factors put TUI in an extremely goo
