Table 8: TUI’s current capabilities using McKinsey 7s
Strategy
8.1 Follow an end to end product offering for the customers to
provide an overall Travelling experience (1)
Structure
8.2 Distributed in mainly three regions (2) 8.3 Flat Hierarchy
system (2)8.4 Different domains for services provided like
Airlines, Hotels, Cruise, Innovation & Sustainability.(2)
8.5 They come together to create the all in one product for the
customer.(2)
Skills
System
8.6 Having a team of skilled and professional employees to
provide excellent services
8.7 Setting up researching and development team to research
for better sustainable options to improve on their existing
services.
8.8 Monitoring the daily processes to improve on the feedback. methods to improve sustainability.
Shared Values
8.17 Their strategy to provide a special and unique experience
to their customers while making the effect on the environment
to a minimum. (3)
8.18 Maximize profits for the local vendors and provide a more
sustainable and engaging experience for the customer (3)
Table 9: STEEPLE model
Social
9.1 Ecotourism: The need for ecotourism has been on the rise
and TUI provides on the best ecotourism packages.
9.2 Lifestyle Change: The way people travel having been
changing since the late 1990s, they want a more luxurious well
as meaningful travel.
Technological
9.3 Digitization: In the modern era it is important to use the
new world technologies to reach people and use them to
market and improve their operational process as well.
9.4 Online Booking: Booking online provides more facilities to
the customers within the comforts of their homes and offices.
9.5 Social Media: Using the social media platforms to promote
and market the business and attract new customers.
Staff
8.9 Training and Mentoring employees to provide best customer
satisfaction.
8.10 Talent acquisition to improve on their existing services and
boost customer sales.
8.11 Improved communication between the higher
management and the employees, high transparency.
8.12 Addition of skilled professional to provide insights and
proper feedback to enhance their services and provide better
customer satisfaction.
Style
8.13 The company relies on division of work according to their
domains.
8.14 They have an open and democratic leadership style to
allow employees proper communication channels.
8.15 Innovating and researching on new techniques and
Economical
9.8 Economic Growth: The tourism industry constitutes of 9% of
the overall GDP of the world.
9.9 Investments: The company plans to invest more funds in the
next phase till 2020.
9.10 The fluctuating rate of pound due to economic factors of
the market
Political
9.11 Brexit: This has impacted in the costs going up and
unemployment rates to increase too. Tax rates from The EU
have also been adversely affected.
9.12 Different Tax Rates: Due the global reach of the company
the political and economic factors in those regions cause
fluctuations in the market.
Ethical factor
9.13Sustainable: The company aims to make its services be
more environment-friendly and innovative
Environmental
9.6 Climate Changes: The changes related to the climate affect
the tourism industry the most. They can cause a lot of loss for
the company due to cancellations.
9.7 Carbon Footprint: The organizational processes of the
company need to be in the safe limits and follow governmental
policies.
Table 10: Four Challenges Faced by TUI
1. Sustainability: To have a better working model and a
sustainable growth for the future of the company. The company
needs to implement adopt services which are efficient and have
low negative impact on the environment. They need to train
their employees and vendors to adopt the same technologies.
They need to utilize the local resources and help them grow as
well to increase the sustainability. Providing excellent customer
service will create better customer satisfaction and better
goodwill of the company. The have been adopting new
technologies and innovations to improve the market and make
it sustainable for the world.
3. Digitization: Digital presence is important for any company on
the modern era. TUI Faces the challenge to make and audience
on the digital platforms. The fastest and the cheapest way to
market their products and services are via digital marketing.
They can offer discounts and offers to their digital customers to
attract them to book online .Customers prefer to book inline
and get notified via these mediums. Hiring professional blog
writers and photographers to showcase their targeted tourist
destinations will help them provide vital information to their
customers.
2. Climate Change: Climate factors are very essential for the
tourism industry. It is an important challenge that TUI needs to
overcome or mitigate in order to provide better services. The
unpredictable nature of the challenge makes it impossible to
completely overcome it. Steps to monitor the climate changes
and have precautions in place can help the customers feel safe
and be inclined to choose TUI. They need to have better weather
guidance equipment on their Jet planes, cruise ships to avoid
any damages. Climate can play a pivotal role and need to be
monitored in the tourism industry for safe travels of the tourists.
4. Acquisitions
TUI provides an end-to-end in house services like the mode of
transportation ( Planes & Ships), accommodation (Hotels &
Guest Houses) and ground services like tourist services ( food
and city tours) for the customer. They need to keep adding more
companies to their group to increase their world class services.
They need to attract better partners and investors to provide
them funds for the mergers and accusations. They also need to
have a quality recruitment process to acquire best talents in
technological and mechanical field to improve on the product
quality.
References

1. https://www.tuigroup.com/en-en/about-us/about-tui-group/strategy
2. https://www.tuigroup.com/en-en/about-us/about-tui-group
3. https://www.tuigroup.com/en-en/responsibility/sus_business