TUI Group plans Chinese expansion

FTSE 100-listed travel company TUI Group has announced plans for a major expansion into the Asian market, with a particular view to stepping up its operations in China.

The Anglo-German firm said it was conducting a joint venture with Chinese partner CTS Group, in order to tap into the rising tourism levels from those in the East.

"We are seeing new travel trends, in particular among young Chinese travellers. For a long time, the focus was on city breaks, culture and shopping. Young Chinese consumers are now discovering 'Western-style' sun and beach holidays, sports, wellness and relaxation", TUI CEO Fritz Joussen said during a visit to China.

The travel firm hopes to generate an additional €1bn in turnover as a result of the expansion.

The travel firm hopes to generate an additional €1bn in turnover

TUI already has two offices in China, in Shanghai and Beijing, and the company said one of the focuses of its expansion would be on offering Chinese tourists more options throughout the rest of the continent.

"We already take European tourists to China, while Chinese tourists are travelling to Europe with us. In future, China will be a travel hub within Asia. We are aiming to offer Chinese customers holidays in Malaysia, Thailand or Vietnam the way we are offering travel within Europe for German, French or Swedish customers," said Joussen.