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TUI

Digital growth strategy increases visibility, improves conversion and boosts direct revenue

Strategic positioning
Market positioning in the growth segment “Accommodation only”, with a focus on the end-to-end customer experience rather than price or breadth of offer alone.

Time-to-market optimisation
A prioritised roadmap with clear action areas accelerates strategy execution and entry into the new segment.

Organisational buy-in
The strategy was developed in workshops with the TUI teams who would later implement it. That strengthens internal acceptance and increases the execution capability of cross-functional teams.

TUI, Europe’s largest tour operator, aimed to establish itself as a standalone provider in the fiercely contested accommodation-booking market alongside platforms such as Booking.com, focusing on the customer experience rather than price alone. DAYONE developed a digital growth strategy with a prioritised roadmap in a six-week DIaaS® process. The result: concrete initiatives for entering the accommodation-booking segment, developed together with TUI’s interdisciplinary teams.

Client
TUI · Europe’s largest tour operator
Industry
Tourism / Travel
Services
Digital Strategy · Market & Competitor Analysis · User Research · Customer Journey Mapping · Strategy Workshops · Conversion Optimisation
Outcome
Prioritised roadmap with concrete initiatives for entering the accommodation-booking segment

Starting point

TUI wanted to establish itself in the European accommodation booking market, which is dominated by platforms like Booking.com, as an independent provider in its own right, without competing purely on price and inventory.

The challenge: differentiation in a crowded market

In the accommodation-booking market, platforms with vast choice and low prices dominate. In Europe, according to the market data shown in the case, only 8.7 percent of bookings were made directly with tour operators, and 28.7 percent via online travel agencies (OTAs). Among these OTAs, Booking.com alone accounted for a 71.2 percent market share, compared with 12.5 percent for Expedia and 6.7 percent for HRS. In this environment, it was hard to differentiate on price and range alone, so TUI focused on the customer experience. According to a Google analysis cited by DAYONE, hotel bookings that put the customer experience first generate 22 percent more revenue than purely price-focused offers.

Graphic with two ring charts. On the left, a ring chart of the market shares of distribution channels in Europe, with the text: "Tour operators: 8.7%", "OTA: 28.7%", "Other: 3%", "Direct: 59.7%". On the right, a pie chart of the market shares of the main OTAs in Europe, with the text "HRS: 6.7%", "Expedia: 12.5%", "Other: 9.6%", "Booking.com: 71.2%"

The approach: the entire customer lifecycle in focus

The strategy covered the full customer lifecycle, from acquiring new customers to retaining existing ones. DAYONE therefore aligned the roadmap not only to improve the conversion rate, but also to maximise long-term customer lifetime value. A concept for the TUI app illustrated how inspiration, selection and booking of accommodation could come together in a seamless experience.

Two simplified views of the mobile TUI app focusing on the "Dalmatian Coast" region. On the left, a detail of a sea inlet. In the foreground the title "Infinite Expanses in Croatia", below it "Best in Spring, and Autumn". Beneath are 4 clickable filter components: "€€€", "Island hopping", "National parks", "Art tours". On the right, the interface titled "Dalmatian Coast" with a calendar for choosing dates. One property is shown with an image of a modern hotel room, a rating and a price from [sum] per person per night. Categories such as "Adults only", "Wellness" and "Sustainable" are marked as tags.
Digital growth strategy: graphic in the shape of a horizontal infinity symbol with a gradient from light blue to blue. The left loop reads "customer acquisition", the right "customer retention", visualising the continuous cycle between winning new customers and retaining them.

Evidence-based and collaborative development in three phases

The project followed the in-house DIaaS® standard with three phases: Analysis to generate insights from market, competition and target groups; Ideation to define action areas and success factors; and Concretisation to create prototypes and implementation plans. The outcome was a roadmap with tangible initiatives rather than a generic strategy paper. Workshops with interdisciplinary TUI teams ensured the strategy was not created top-down, but developed jointly. That strengthened internal buy-in and accelerated subsequent delivery.

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Outcome

Within six weeks, a three-phase DIaaS® process of Analysis, Ideation and Concretisation produced a prioritised roadmap with concrete initiatives for entering the accommodation-booking segment.

TUI developed the strategy in workshops together with interdisciplinary teams, rather than dictating it top-down.

A strategy in six weeks

With the DIaaS® (Design Innovation as a Service) design and consultancy standard, DAYONE combines collaborative ways of working, strategic thinking and user-centred design. A clear mission, the right experts and openness to new approaches led to a tailored solution for TUI within six weeks.

Market & competitor analysis

In-depth analysis of market trends and benchmarking against relevant competitors to identify potential.

User Research & Customer Profiles

Conducting qualitative and quantitative analyses to develop well-founded target group profiles and relevant customer insights.

Customer Journey Mapping

Visualization and analysis of the entire user journey to identify pain points and optimisation potential along the booking process.

Strategy workshops & Co-Creation

Moderation of interdisciplinary workshops for the joint development of vision, action areas and strategic guidelines.

Strategic roadmap & areas of action

Development of a prioritised roadmap with concrete initiatives and clear responsibilities for rapid implementation.

Frequently asked questions

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DAYONE managing director Nico Wohlgemuth

Nico

Managing Partner DAYONE