In 2006, the renowned travel industry figure, Will Waggott, took the reins of TUI Travel Plc’s hotel division. At that juncture, the division comprised 18 hotels primarily secured through a series of acquisitions in the Nordic region. These included an intriguing blend of leased establishments in the Canary Islands and a noteworthy joint venture with Atlantica Hotels, predominantly operational in Cyprus.
TUI, however, was on the threshold of a strategic crossroads. The company sought to transition beyond the conventional hotel business model, aiming to exert greater control over uniquely differentiated hotel products. Their ultimate vision was to craft unparalleled, TUI-branded customer experiences different from anything else in the market.
To materialise this vision, Waggott implemented a multifaceted approach. Recognising the complexities inherent in such a colossal undertaking, he assembled a specialised team to pinpoint prime locations and navigate the labyrinth of legalities tied to hotel construction and the intricacies of lease and management contracts. But his aspirations didn’t stop at mere acquisition. Another squad was instated to supervise the architectural innovation and refurbishment endeavours of these hotels. This team also spearheaded the recruitment of adept managerial staff, ensuring that each establishment was under competent leadership.
In a key strategic move, all hotel specifications underwent a rigorous review process in collaboration with in-house tour operators to ensure that every hotel establishment under TUI’s banner resonated with the company’s ethos and had tour operators buying that established a long-term commitment to driving their success. Their offerings were tailored with precision, reflecting the exact needs of their target market, and were imbued with the unmistakable essence of TUI branding.
The decade that followed saw an unprecedented expansion under Waggott’s leadership. From the original tally of 18, the number of TUI-owned hotels swelled to over 90. This meteoric growth was achieved by harmonising new constructions, acquisitions, prudent leasing strategies, and strategic management contracts. Waggott’s vision and meticulous execution birthed a hotel portfolio where over 90% showcased a distinct TUI-branded differentiated product. These establishments now dot the landscapes of Spain, Cyprus, Greece, Turkey, Croatia, the Dominican Republic, and Cuba.
Financially, the results were nothing short of stellar. The hotel division boasted an impressive return, exceeding 20% on capital employed. Furthermore, it supplied the tour operators with profitable offerings, ensuring a sustainable and lucrative ecosystem. Under Waggott’s aegis, this strategy has left an indelible mark on TUI’s legacy. Presently, more than half of TUI’s hotel products are either managed or controlled by the company itself, standing as a testament to their unwavering commitment to delivering a consistently high-quality customer experience.