TUI Travel
A British international leisure-travel group formed through the combination of First Choice Holidays and TUI AG's tourism division, later merged into TUI Group.
Last updated August 21, 2026
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Overview
TUI Travel PLC was a British leisure-travel group headquartered in Crawley, West Sussex. It began operating on 3 September 2007 after the merger of First Choice Holidays PLC with the tourism division of German group TUI AG. TUI AG held a majority stake of 56.4% in the combined company, while TUI Travel was separately listed on the London Stock Exchange and became a constituent of the FTSE 100 Index. The company combined the businesses of two major European travel organizations. First Choice Holidays had developed from Owners Abroad, a travel agency founded in 1973, and had expanded through tour operating, travel retail, aviation and acquisitions. TUI AG, meanwhile, had moved from its industrial origins into tourism through the acquisition of Thomson Travel in 2000 and Hapag-Lloyd in 2002. Hapag-Lloyd owned the TUI tourism business, whose name derived from Touristik Union International. The merger therefore brought together TUI's established continental European tourism operations and First Choice's strong position in the United Kingdom and other markets. TUI Travel operated an integrated leisure-travel model. Its activities included package holidays, travel agencies, accommodation, flights, cruises, destination services, specialist travel and activity holidays, and online travel retail. The group was organized into Mainstream and Specialist and Activity businesses. Mainstream operations were divided geographically into Central Europe, Northern Europe and Western Europe. This structure allowed the company to combine tour operation with control or influence over airlines, hotels, resorts, distribution networks and destination management. The company reported operations in approximately 180 countries and claimed around 30 million customers. Its customer-facing brands varied by country and business line. In the United Kingdom, Thomson was a particularly important tour-operator and travel-retail name, while First Choice continued to be used for selected all-inclusive package holidays. The group also operated or controlled airline businesses serving its tour operations. Thomsonfly and First Choice Airways were brought together under a common air operator's certificate in 2008, and the resulting airline was renamed Thomson Airways later that year. TUI Travel also pursued portfolio rationalization and brand integration. In 2009, the online travel retailer Selloffvacations.com and Signature Vacations were sold to Sunwing Travel Group. From 2011, TUI Travel implemented a two-year retail rebranding program in the United Kingdom under the name "Thomson featuring First Choice." The stated purpose was to create a more unified agency network, phase out First Choice's separate retail identity and preserve the First Choice name for all-inclusive package holidays sold through the combined distribution system. TUI Travel's corporate relationship with TUI AG remained central to its identity. A possible merger was discussed publicly in 2013, although TUI AG's chief executive initially ruled out a combination. In June 2014, the two companies announced agreed terms for a merger. The transaction created the new TUI Group, combining TUI Travel's operating businesses with TUI AG's corporate structure. The merger was completed in December 2014, and TUI Travel was delisted from the London Stock Exchange on 17 December 2014. TUI Travel consequently ceased to exist as an independent listed group, although many of its operating brands, assets and business activities continued within TUI Group.
History
TUI Travel's history combined the development of First Choice Holidays with the transformation of TUI AG from an industrial company into a tourism group. TUI AG originated in Berlin in 1923 as Preußische Bergwerks und Hütten-Aktiengesellschaft, an industrial enterprise. It became publicly listed on the Frankfurt Stock Exchange in 1959 and adopted the name Preussag in 1964. During the late twentieth and early twenty-first centuries, Preussag shifted toward services and tourism. It acquired Thomson Travel in 2000 and Hapag-Lloyd in 2002. Because Hapag-Lloyd owned the tourism business known as TUI, Preussag subsequently changed its name to TUI AG. First Choice had a separate British development. It was established in 1973 as Owners Abroad and initially operated as a travel agency. The business expanded into tour operating and related travel services and was listed on the London Stock Exchange in 1982. Its growth included the launch of Air 2000 in 1987 and the acquisition of Redwing in 1990. Over time, First Choice developed a broad holiday distribution and aviation platform, including First Choice Airways and the Canadian vacation businesses associated with Signature Vacations and Selloffvacations.com. In March 2007, TUI AG and First Choice announced the merger of First Choice Holidays with TUI AG's tourism division. European regulatory approval followed on 4 June 2007, subject to the disposal of Budget Travel in Ireland. The combined company began operations as TUI Travel PLC on 3 September 2007. TUI AG owned 56.4% of the new company, while TUI Travel retained a separate public listing in London. The new group claimed operations across approximately 180 countries and around 30 million customers. The post-merger organization was built around Mainstream and Specialist and Activity operations. Mainstream activities were grouped into Central Europe, Northern Europe and Western Europe. The business model linked tour operators and travel agencies with airlines, accommodation, destination management and online distribution. Its airline integration was particularly visible in the United Kingdom. Thomsonfly and First Choice Airways were brought together under a common operating certificate in May 2008, and the combined carrier was renamed Thomson Airways in November 2008. The airlines in the wider group were generally aligned with local customer-facing brands and, in some cases, received TUI-associated colors and markings. TUI Travel also adjusted its portfolio and retail architecture. In 2009 it sold Selloffvacations.com and Signature Vacations to Sunwing Travel Group. In 2011 it began a two-year program to rebrand its British retail stores as Thomson featuring First Choice. This was intended to reduce duplication between the two distribution identities while maintaining First Choice as a holiday product name, particularly for all-inclusive packages. The relationship between TUI Travel and TUI AG eventually moved from parent-and-subsidiary structure to corporate consolidation. TUI Travel confirmed in January 2013 that it had received a merger proposal from TUI AG, although a TUI AG executive publicly ruled out a merger in May of that year. The position changed in June 2014, when the companies announced agreed terms. The transaction was completed in December 2014 and created the new TUI Group. TUI Travel was delisted from the London Stock Exchange on 17 December 2014 and ceased to operate as an independent corporate group. Its brands, aircraft-related operations, tour businesses, distribution networks and other assets were absorbed into TUI Group.
- 2014
TUI Travel merges into TUI Group
[1]The merger with TUI AG was completed, creating the new TUI Group. TUI Travel was delisted in December.
- 2011
British retail rebranding begins
[1]TUI Travel began transitioning its store network toward the Thomson featuring First Choice identity.
- 2009
Canadian online and vacation businesses divested
[1]Selloffvacations.com and Signature Vacations were sold to Sunwing Travel Group.
- 2008
Thomson Airways created
[1]Thomsonfly and First Choice Airways were combined operationally, with the resulting airline renamed Thomson Airways.
- 2007
TUI Travel begins operations
[1]The merger of First Choice Holidays and TUI AG's tourism division became operational on 3 September 2007.
- 2002
Preussag acquires Hapag-Lloyd
[1]The acquisition brought the TUI tourism business under Preussag's ownership, after which Preussag adopted the TUI AG name.
- 2000
Preussag acquires Thomson Travel
[1]The acquisition strengthened Preussag's move into international tourism.
- 1990
Redwing acquired
[1]Owners Abroad expanded through the acquisition of Redwing.
- 1987
Air 2000 launched
[1]Owners Abroad launched Air 2000 as part of its expansion into leisure aviation.
- 1982
Owners Abroad lists in London
[1]The First Choice predecessor became listed on the London Stock Exchange.
Products and positioning
An integrated, mass-market European leisure-travel group combining tour operators, travel retail, airlines, accommodation and destination services, with additional specialist and activity-travel businesses.
Tour operating
Package holidays
TUI Travel's core offering combined transport, accommodation and destination arrangements into packaged leisure holidays. The model enabled the group to sell standardized vacations through travel agencies, online channels and tour-operator brands across several European source markets.
All-inclusive travel
First Choice all-inclusive holidays
First Choice remained an important customer-facing holiday name after the merger. During the retail integration program, the brand was primarily associated with all-inclusive package holidays sold through the combined distribution network rather than maintained as a fully separate store identity.
Mainstream leisure travel
Thomson holidays
Thomson was a major British tour-operator and travel-retail identity within TUI Travel. Its offering included package holidays, accommodation-led vacations and flight-inclusive leisure travel, supported by the group's airline and destination-service operations.
Leisure aviation · 2008
Thomson Airways
Thomson Airways was the airline created by combining Thomsonfly and First Choice Airways under a common operating structure. It supplied air capacity for the group's tour operations and was aligned with the Thomson customer brand.
Specialist travel
Specialist and activity travel
Alongside mass-market holidays, TUI Travel operated specialist and activity businesses. These activities covered travel organized around particular interests, destinations or experiences, complementing the group's mainstream package-holiday operations.
Marketing campaigns
- 2011Thomson featuring First Choice
United Kingdom
TUI Travel introduced a two-year retail-brand integration program that placed its British store estate under the Thomson featuring First Choice name. The program was designed to create a unified agency presence while retaining First Choice as a product brand for all-inclusive holidays.
Outcome. The separate First Choice retail branding and uniforms were scheduled to be phased out as the combined network adopted the Thomson-led identity.
Brand decisions
2014
Merge TUI Travel with TUI AGM&ABackground
TUI Travel and its majority parent TUI AG agreed to consolidate their corporate structures after earlier uncertainty about whether a merger would proceed.
Action taken
The merger was completed in December 2014, creating the new TUI Group.
Aftermath
TUI Travel was delisted from the London Stock Exchange on 17 December 2014 and ceased to exist as an independent listed company.
2011
Unify British travel-retail brandingStrategyBackground
TUI Travel operated overlapping Thomson and First Choice retail identities in the United Kingdom.
Action taken
The company began rebranding its stores as Thomson featuring First Choice and planned to phase out the separate First Choice retail identity.
Aftermath
First Choice was retained principally as a name for all-inclusive package holidays distributed through the combined network.
2009
Sell Selloffvacations.com and Signature VacationsM&ABackground
TUI Travel reviewed and streamlined its portfolio of travel-retail and vacation businesses.
Action taken
The two businesses were sold to Sunwing Travel Group.
Aftermath
The divestment transferred the businesses to another Canadian travel group and reduced TUI Travel's direct ownership of those operations.
2008
Integrate the in-house airlinesStrategyBackground
The merger created overlapping airline operations in the Thomsonfly and First Choice Airways businesses.
Action taken
The airlines were brought together under the former Thomsonfly air operator's certificate and subsequently rebranded as Thomson Airways.
Aftermath
The group obtained a unified British leisure-airline identity supporting its tour-operator network.
2007
Merge First Choice Holidays with TUI AG's tourism divisionM&ABackground
First Choice and TUI AG sought to combine complementary European tour-operating, travel-retail, airline and destination businesses.
Action taken
The companies completed the transaction and began operating the combined business as TUI Travel PLC on 3 September 2007. European approval required the sale of Budget Travel in Ireland.
Aftermath
TUI AG held 56.4% of TUI Travel, which remained a separately listed London company.
Sources1 sources
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