TUI Group delays 75 percent of payments owed to hotel partners

PUBLISHED May 08, 2020

Worlds leading integrated tourism group operating in more than 100 destinations worldwide informs its hotel partners that 75 percent of last winter's holiday payments will be delayed until post COVID-19.

According to TUI, significant advance payments were made to hotels for 2020 and they are working in partnership to gear up for when travel continues when borders open.

President of the Tenerife Hotel Association and CEHAT, the Spanish hotel and tourism association, Jorge Marichal Gonzãlez called for more understanding from Tui, "We know this is a difficult situation for everyone, but the tour operators need to understand that this is a horrible situation for hotels. Maybe some will go bankrupt. Some of them only work with Tui, so its even worse because they have only one operator. We understand we need to support in any way we can, but Tui needs to understand its not the same for every business.

"Companies that are bigger and stronger need to understand smaller hotels with guarantees and exclusives are in a very bad situation. They need to take that into account."

Conveying that the government will not prioritise hotels in Spain, "we are only asking for money that Tui owes us," said Gonzãlez.

Spanish website, reported that hotels are being told the new payments plans are non-negotiable and common to all hotel partners.

The new proposed payment plans by TUI include four separate payments of 25%, the first after hotels sign the new terms and the rest from one month after it is announced travel to the country is allowed.

TUI stated, "As weve mentioned before, we have long-lasting and very successful relationships with our partners in destinations which remain intact also during these unprecedented times.

"In these unprecedented times, we are focused on working together with our partners in our destinations. We are working step by step on setting up internal processes, so as to be prepared to return to normal procedures as quickly as we can. As soon as travel restrictions ease, were confident we, together with our partners, will be able to offer the best product available for our customers."

Alan Bowen, Legal Advisor to the Association of Atol Companies, said, "Tui, as the largest operator in Europe, is in a position to do this because there is no one else with the ability to fill the beds with the numbers that the hotels need. I suppose they would argue this is the way they are going to survive. Its an appalling situation. As an industry, weve got to be really careful we are treating customers fairly, agents and operators fairly and suppliers fairly. All these relationships are very important."

TUI offers its 28 million customers, including 21 million customers in European national companies, integrated services from a single source. It covers the entire tourism value chain under one roof. This comprises more than 400 hotels and resorts with premium brands such as RIU, TUI Blue and Robinson as well as 18 cruise ships ranging from the MS Europa and MS Europa 2 luxury class vessels and expedition ships to the Mein Schiff fleet of TUI Cruises and the vessels of Marella Cruises in the UK.


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