TUI Demands Radical Reform of €1 Billion Travel Security Fund as Inflation Eats Away at Deposits

TUI urges Berlin to eliminate DRSF fees and cut collateral requirements, citing €1bn locked capital amid inflation and a €111m H1 loss. Stock down 20% YTD.

TUI has gone on the offensive against Berlin, demanding that the German government scrap fees for the country’s travel insolvency protection scheme and slash collateral requirements. The tourism giant argues that the current setup is bleeding the industry dry — locking up capital that could otherwise be used for investment while inflation silently erodes its real value.

The demand centers on the German Travel Security Fund (DRSF), where roughly €1 billion from travel operators sits under state supervision. Since November 2025, the fund has charged a levy of 0.5% of insurable turnover, plus an individual collateral factor ranging from 5% to 9% depending on the company’s financial health. TUI’s complaint is blunt: the money is effectively “under the mattress,” earning nothing while inflation eats away at purchasing power. The group insists that a more productive use of those funds would strengthen the industry’s investment firepower and lower the cost base of package holidays.

The push comes against a backdrop of operational strain. In the first half of 2026, TUI posted an adjusted EBIT loss of €111 million — a €45 million improvement year-on-year, but still deep in the red. The second quarter was hit by one-off charges tied to the Iran war and Hurricane Melissa, adding to the pressure. For the full year, management expects adjusted EBIT of between €1.1 billion and €1.4 billion at constant currencies, though it has suspended its revenue guidance for the time being.

Against this fragile earnings picture, every regulatory relief matters. The DRSF had already announced a phased reduction of fees in July 2025, but TUI’s latest call goes far further. A political decision on the demands is still pending.

The stock market has taken a cautious view. TUI shares closed at €7.16 on Friday, down nearly 3% on the day, leaving the year-to-date decline at almost 20%. The technical picture is mixed: the stock sits above the 50-day moving average of €6.81 but below the 200-day line at €7.68, suggesting the recovery lacks conviction. The 52-week high of €9.50 remains a distant target.

Investors will get fresh catalysts in the coming months. TUI is due to report third-quarter results on August 12, followed by a booking update on September 22. Analysts remain broadly bullish, with a consensus price target of €10.45 — implying significant upside from current levels — though many banks have already trimmed their forecasts in recent months. The market’s next move will depend on whether TUI can translate its political pressure into tangible relief while delivering a stronger operational performance this summer.