TUI Bets on Loyalty Scheme and Winter Sun as Bookings Cool

TUI rolls out its Smiles Rewards Club on 13 October across Germany, Austria and Switzerland as package-tour revenue runs 7% below last year.

TUI is leaning on brand loyalty and its winter sun strongholds to steady the ship after a patchy summer, with the Hannover-based tour operator preparing to launch a new rewards club across the German-speaking market while it wrestles with softer package-holiday demand.

The Smiles Rewards Club debuts on 13 October in Germany, Austria and Switzerland. More than a million members had already pre-registered for the programme, according to company figures. The initiative is designed to lock customers into TUI's own offerings and counter a stubborn shift toward last-minute trip planning.

That shift is visible in the numbers. Booked package-tour revenue recently sat seven percent below the prior-year level, Reuters reported, a decline that has narrowed the room for meaningful price increases in the near term. TUI's answer includes a broader push by its ltur subsidiary, which expanded its last-minute inventory and introduced additional booking options that come without a transfer included — flexible building blocks aimed squarely at cost-conscious travellers.

Canaries and Thailand Hold Their Ground

Presenting its winter 2026/27 programme on Tuesday, TUI reported unabated appetite for classic sunshine destinations. The Canary Islands remain the top winter choice for German holidaymakers, ahead of Egypt and Turkey, while Thailand leads the long-haul rankings. TUI Austria's data confirm the same booking patterns in the neighbouring market.

Capacity is being lined up accordingly. TUIfly, the group's own airline, has scheduled roughly 1.3 million seats for the winter, with close to half of them allocated to the Canaries, according to dpa-AFX.

Analysts Trim Targets, Keep Faith

The stock finished Friday at EUR 6.88, capping a weekly advance of 3.6 percent, though it remains 23 percent lower since the start of the year. The gain followed TUI's decision just over a week ago to narrow its guidance for adjusted operating profit (EBIT) in the 2026 financial year.

The late-summer business drew support from solid demand in the Holiday Experiences segment and improving booking momentum in Markets & Airline. Analysts responded with measured tweaks rather than alarm. Barclays cut its price target for TUI to EUR 8.75 from EUR 9.75 on Friday while keeping an "Overweight" rating. Analyst Andrew Lobbenberg revised his estimates but pointed to greater pricing discipline than in the past, according to dpa-AFX. Deutsche Bank Research had already trimmed its own target modestly on 23 September, reaffirming its "Buy" recommendation.

Management, for its part, put money to work. Chief executive Sebastian Ebel bought shares worth EUR 32,650.00, and HR chief Sybille Reiß picked up stock for EUR 12,800.00. The company is also pursuing growth beyond its core markets: on 28 September it signed a memorandum of understanding with Bulgaria's tourism ministry establishing a partnership through 2030, a move intended to widen its offering and open new streams of visitors.

Investors will get the full picture on 9 December, when TUI publishes its audited annual report.