Tui Elevates Travel with AI-Powered Videos

Tui, Europe’s biggest travel operator, is significantly investing in artificial intelligence (AI) as travelers increasingly seek assistance from AI tools like ChatGPT to book their holidays. The company’s chief executive, Sebastian Ebel, emphasized the importance of this investment in creating ‘inspirational’ videos and content that can enhance customer engagement and trip planning.

In a notable shift from traditional search engine optimization (SEO), Tui is focusing on generative engine optimization (GEO). This new approach aims to boost Tui’s visibility in AI-generated responses, positioning the company favorably in results generated by chatbots such as ChatGPT and Gemini. Unlike conventional SEO, which relies on links and keywords, GEO aims for recommendations through various online datasets, ensuring products are showcased in contexts where AI agents draw insights.

Ebel highlighted that by connecting with large language models and social media platforms, Tui aims to establish a broader distribution network beyond Google’s traditional reach. This strategy is designed to optimize search capabilities and increase proximity to platforms like ChatGPT and TikTok, aligning with consumer behavior trends where AI agents assist users with online shopping.

Additionally, Tui is employing AI to curate ‘inspirational’ videos, assist in content creation, and facilitate translations, all intended to enrich the trip planning process. The company had previously utilized ChatGPT within its app since 2023, though the initial implementation encountered some challenges, such as difficulty maintaining coherent conversations.

Despite these advancements, Tui’s recent financial results show a 20% increase in annual pre-tax profits, nearing €1bn (£904m), while revenue saw a modest 4% rise to €24.2bn. Forecasts suggest a slower growth rate between 2% and 4% over the next year, impacted by wider economic uncertainties. As the firm grapples with its performance in the core German market, it aims to reduce costs by €250m by 2028, although Ebel reassured that this would not mean a reduction in staff numbers. The workforce, currently at about 67,000 globally, is set to evolve towards greater efficiency.

On a concerning note, Tui’s shares have experienced turbulence, falling 2.8% in early trading, and are down approximately 34% over the last five years. Ebel expressed dissatisfaction with the current stock price situation, while Tui’s chief financial officer, Mathias Kiep, hinted that new dividend policies could help stabilize investor confidence.

Nevertheless, signs of optimism are emerging, with Tui reporting favorable holiday bookings for the upcoming summer season and identifying popular destinations such as Greece, the Balearic Islands, and Turkey for 2026. This positive trend could signify a rebound as market conditions stabilize post-inflation.