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Do you want to sell or buy TUI stock? With this article we offer you the assistance you need to succeed with your analyses of this company’s share price. To successfully complete your analyses and best anticipate the future price variations of this asset you will need a thorough knowledge of this company and its economic environment. Here we will therefore explain in detail the activities of this group as well as its major competitors and partners.  We will also examine the various data and events you will find useful for the completion of your fundamental analysis of this asset.  
Dividend payments
Can I receive dividends when I buy TUI shares?
No
 
Information on TUI shares
ISIN code: DE000TUAG000
Ticker: ETR: TUI1
Index or market: Xetra
 

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Elements to consider before investing in this asset

Analysis N°1

TUI's actions to make the best use of new technologies, particularly online or mobile holiday booking applications, should be monitored.

Analysis N°2

You should also pay close attention to the strategic measures taken to develop the group's activities in emerging markets.

Analysis N°3

Competition in this sector is very strong, so you will need to analyse the strategies and news of TUI's main rivals, as well as its pricing policy.

Analysis N°4

It will also be necessary to monitor the foreign exchange market and changes in regulations and policies relating to tourism and travel in general.

Analysis N°5

Finally, it will be interesting to monitor the company's financial and economic results on an annual and quarterly basis, comparing them with analysts' targets and expectations.

How to sell or buy TUI shares?
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What should I know before sell and buy TUI stock?

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Let us now continue with a more detailed presentation of the TUI Company. A thorough basic knowledge of this group and its activities is in fact essential if you are going to effectively understand the challenges it faces and its growth possibilities.

The TUI AG Group is a German company specialised in the tourism sector. More precisely, this company is currently the leader in this activity sector in Europe.

To better understand this group’s activities it is possible to divide them into different categories according to the turnover generated by each of them and the manner in which this is done:

  • Tourism industry services of course represent the major part of TUI’s activities with 97.6% of this company’s turnover. This notably concerns the operation of tour operators and airlines particularly in the case of TUI Travel, the cruises, and hotel groups with TUI Hotels & Resorts representing a total of 354 hotels amounting to 262,244 beds and other related elements.
  • The remainder of the group’s turnover, 2.4%, originates from other activities, primarily those related to real estate.

It can also be advantageous to know the geographical distribution of this company’s turnover which currently achieves 28.1% of its turnover in Germany, 31.8% in the United Kingdom, 1% in Spain, 35.8% from the rest of Europe, 1.6% from the American continent and the remaining 1.7% from other areas around the world.

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The major competitors of TUI

Still with the objective of understanding the growth possibilities of the TUI Group and therefore those of its share price on the stock markets, you should know and understand its major activity sector and the major players therein.  We therefore now offer you the opportunity to learn about the major competitors of TUI.

FRAM

Also known under the name of ‘Fer, Route, Air, Mer’, this is a French travel company that was created in 1949 and has become a group with diverse activities notably exercising them under the brand names FRAM Voyages and FRAM Agences. Until recently it held third position in this sector in Europe behind TUI and Thomas Cook.

Thomas Cook Group

  This particular travel group is British and was created in the middle of the 19th century in England. It did however declare bankruptcy on 13th September 2019.  At the time of its closure it boasted 2,600 travel agencies, 33 travel companies, 89 aircraft and was present in over 15 countries.

Karavel

This French company that notably operates under the brand name Promovacances is specialised in tourism and is particularly well known for its online travel agency.


The major partners of TUI

Let us first study the strategic allies of TUI with a review of two recent examples of partnerships that this group has implemented with other companies with the objective of meeting certain requirements or promoting the growth of the company.

MAIF

Firstly, in 2013, TUI implemented a strategic partnership with the insurance company MAIF. More precisely it was the subsidiary, TUI France, leader in the French tourism sector that became associated with the MAIF Group, a major player in the individual insurance sector, through a social partnership agreement relating to the recruitment of personnel concerning the voluntary departure plan of TUI France. This agreement concerned approximately a hundred employees enabling them to bypass the standard recruitment procedures and thereby demonstrating the social and responsible engagement commitments of the two companies.

Booking

More recently, in June 2020 to be more exact, the TUI Group signed a new strategic partnership agreement with the online hotel reservations giant Booking.com. The objective here of Booking was to become present in all aspects of travel with an integrated range of solutions and activities including lodging, tickets and transport. This is why after the launch of its online digital activities in 2019, and in 10 French towns and cities, Booking.com signed this strategic partnership with the travel company TUI. Through this partnership the clients of Booking were in fact granted direct access to over 70,000 tours and attractions worldwide through the TUI subsidiary, TUI Musement, with a progressive launch on the online platform of Booking over the following few months.

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Positive factors for TUI
The factors in favour of a rise in the TUI share price:

The analysis of the TUI Group share price requires, first and foremost, a good knowledge of this company, but also of its main strengths and weaknesses. Indeed, to understand how this company can face its future threats and how it can take advantage of its future opportunities, you need to know what its strengths and weaknesses are. So here we take a look at them in detail.

Let's start our comparative analysis of the strengths and weaknesses of this stock by summarising the advantages that the TUI Group has in its market and that can help it to remain competitive with the competition:

  • First of all, the group has a fairly substantial personal fleet of aircraft in this market. Firstly, the group has a sizeable fleet of its own aircraft in this market. It should be remembered that TUI currently has a fleet of aircraft and charter aircraft which enable it to serve more than 150 destinations worldwide. The company can therefore meet the demands of many travellers.
  • It should also be noted that apart from the last few years, which have been marked by a significant drop in travel due to the health conditions of the Covid-19 pandemic, the TUI group shows a solid financial health. Indeed, for several years prior to the onset of the health crisis, the group recorded profits that were systematically and progressively increasing.
  • The marketing strategy of the group is also one of its main assets. Indeed, the company has made every effort to limit intermediaries by marketing its trips directly to individuals without going through tour operators.
  • From a geographical point of view, TUI has also been able to position itself on certain strategic markets with strong dynamics. These include the UK and French markets, where the company generates the majority of its revenues.
  • From a commercial point of view, TUI's brand image is strong and the group is highly appreciated by the general public for its services. The group's travel offerings are both unique and customisable, with a wide range of choices and prices.
  • The long-haul segment is also one of the segments in which the TUI group is very well positioned in relation to the competition. In particular, the company is the leader in this segment in its country, which enables it to generate more revenue.
  • The size of the TUI company is also one of its main advantages. It is worth noting that the group currently employs more than 50,000 people worldwide and this workforce accounts for its past growth.
  • Finally, the number of clients that the TUI Group has can also be analysed as a sign of its strength in the market. The company has more than 30 million customers worldwide, which is well above what most of its direct competitors can boast.
Negative factors for TUI
The factors in favour of a drop in the TUI share price:

Now that we've covered the major strengths of TUI, we'll take a look at some of the major weaknesses of the stock in the industry:

  • The first major weak point of the TUI group concerns of course the competition which remains strong and intense from other companies in this sector of activity and which threatens its market share and leadership.
  • The group also has to face certain cultural and social problems in the management of its international offices with regard to its strategy of global presence.
  • The Covid-19 pandemic has also left its mark on the finances of the group, which is only just beginning to recover from the setbacks it has experienced. A continuation of this global problem or the occurrence of new restrictions could therefore weaken it further.
  • TUI's weak points also include the pricing environment in which it operates, which appears to be very difficult given the strength of the competition.
  • Finally, the group faces several operational risks, including exchange rate risks, interest rate risks, and political and economic risks in the countries in which it operates.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the different subsidiaries operated by the TUI group?

Of course, to become the European leader in the tourism sector that it is now, the TUI Group has implemented an advantageous strategy of acquisition and subsidiary creation. Nowadays the group owns and operates numerous subsidiaries including TUI France, TUI Suisse, TUIfly, Corsair International, Jetairfly, Thomson Airways, Marmara and Nouvelles Frontieres.  Also, this giant of the tourism industry still continues to develop new activities through the creation of new branches.      

Where can you follow the TUI share price in real time?

As you may already know the TUI Company benefits from a double quotation on the Frankfurt and London stock markets. You can therefore follow this company’s share price from both markets. But it is also possible to access charts continuously updated in real time from a CFD online trading platform or a stock market placement website. You can thereby benefit from other advantageous trend and volatility indicators that can be useful for your strategic decisions.   

Should you buy or sell TUI shares?

If you are hesitating between a buy or sell strategy with the TUI share price then you should of course base your decisions to a certain extent on a pertinent analysis using the fundamental analysis method and the technical analysis method to best understand and predict the future trends of this asset. You should not forget to combine and adapt these analyses to your investment timeline as each trader will of course trade this asset mainly according to the time period of their positions.

Trade the TUI share!

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