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Contents
1) INTRODUCTION
2) ENVIRONMENTAL ANALYSIS OF THE TOURISM INDUSTRY
2.1) PESTEL ANALYSIS:
2.1.1) POLITICAL:
2.1.2) ECONOMICAL:
2.1.3) SOCIAL:
2.1.4) TECHNOLOGICAL:
2.1.5) ENVIRONMENTAL:
2.1.6) LEGAL:
2.2) PORTER’S FIVE FORCES ANALYSIS
2.2.1) POTENTIAL ENTRANTS:
2.2.2) SUBSTITUTES:
2.2.3) SUPPLIERS:
2.2.4) BUYERS:
2.2.5) COMPETITIVE RIVALRY:
3) MAINTAINING LEADERSHIP
4) FUTURE IMPLICATIONS FOR TUI:
5.4) ANSOFF MATRIX
6) CONCLUSION
7) REFERENCE
8) APPENDICES

1) INTRODUCTION
TUI AG established in 1997, is the undisputed leader in the European tourism TUI AG established in 1997, is the undisputed leader in the European tourism industry. They operate in over 180 countries worldwide serving more than 30 million customers offering a wide range of leisure travel experiences. They also operate around 240 hotels of which majority is in the 4- or 5- star category. TUI travel (tour operating, online sales, high street outlets, airlines and incoming agencies), TUI Hotels & Resorts and the cruise ship business comprises the three sectors of TUI (TUI website). After the selling of Hapag Lloyd AG (was the container shipping company of TUI) in March 2009, TUI has become a pure tourism oriented company. This report will look solely at TUI Travel which was formed in 2007 by the merger of the distribution, tour operator, airline and destinations operations of the TUI Group and those of the former UK travel group First Choice Holidays PLC. TUI AG is the majority shareholder of the company, which is listed on the London Stock Exchange. TUI AG’s merger with First Choice Holidays PLC turned TUI travel into the largest tour operator in Europe with over 30 million customers, over 200 distinct brands and more than 58,000 employees operating across 6 continents. (http://www.tui-group.com/en/company/sectors/tuitravel).

2.1) PESTEL ANALYSIS:
There are many factors in the macro-environment, or external

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