TUI buys back destination management division from Hotelbeds

Hotelbeds Group is selling its destination management division – including the Destination Services, Intercruises Shoreside & Port Services and Pacific World brands – to TUI for 110 million euros (US$136 million).

TUI had earlier sold Hotelbeds for 1.2 billion euros in 2016 to private equity group Cinven and Canada Pension Plan Investment Board.

The deal will allow TUI to expand the destination services market, which is estimated at around 140 billion euros and currently growing at around seven per cent year on year, the company said in a press release.

Fritz Joussen, TUI group CEO, commented: “The global market for these services is growing and offers considerable potential for TUI.”

TUI also sees “interesting” potential as the handling agent for cruise companies in port, enabling it to become a supplier rather than a customer. “The acquisition will thus bring commercial synergies to the group’s cruise line business”, said Joussen.

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