TUI Travel plc, the London based tour operator whose business includes cruise brands Thomson Cruises, Quark Expeditions plus the shoreside services provider Intercruises, said the online business of the group accounted for 24% of its sales in the financial year to 30 September 2013.
"Of our direct sales, 35% is online which equates to £3.7 billion in revenue. There is still ample opportunity to increase direct distribution channels which will help us gain further margin across all our source markets," said Peter Long, CEO in a presentation of the group's results for the 2013 financial year.
Group revenues totalled £15.05 billion, an increase from £14.46 billion in the previous financial year, while net profit fell to £67 million from £137 million a year earlier. However, this was mainly due to a £188 million impairment charge; in the previous year the company only booked £20 million in such charges. Online sales of £3.7 billion thus equalled 24% of the group's total revenue.
"Our direct distribution channels are key to the Group’s success and enable us to increase margin and improve results. The number of holidays booked through our Mainstream websites continues to increase and this remains the core contributor for direct sales," Long said.
"We are an online business but we continue to drive further enhancements through technologies that amplify the customer experience at the front-end and drive further efficiencies in the back-end processes," he stated, adding that in in May the company had launched the award-winning TUI Digital Assistant in the UK as the ‘MyThomson’ mobile app. It was very well received by customers achieving a five star rating in the Apple App Store and topped the free download travel app chart shortly after launch.
"Since then, we have had in excess of 180,000 downloads proving we understand what our customers want and need from their travel provider. Post year end, we began the TUI Digital Assistant international roll-out with the ‘Meine TUI’ mobile app launch in the German source market," Long pointed out.