At a Glance

Welcome to TUI Travel PLC’s latest Sustainable Development Report where we report data and targets relating to the financial year 1 October 2009 to 30 September 2010 and communicate our 2011 targets. We also detail some of the sustainability progress achieved in our priority areas of Carbon Management, Destinations, and Colleague and Customer engagement, and show how our sustainability strategy aligns with our Group’s overall strategic direction.

TUI Travel’s goal is to make travel experiences special. We seek to achieve this whilst minimising environmental impact, respecting culture and people, and bringing economic benefits to communities. Despite the challenges of today’s operating environment, at TUI Travel we see sustainability as a serious business issue, in fact now more than ever. I am pleased to report that an increasing number of our businesses and brands are making it an integral part of their processes and performance – not only in their own operations but also in those of their suppliers. In fact by the end of last year, 92% of our businesses had developed and were implementing a Sustainable Development strategyⁱ (73% in 2008/09) and we saw a marked improvement in our annual sustainability audit.

In the past year I commissioned PricewaterhouseCoopers (PwC) to work with senior managers in our businesses to review our sustainability risks and opportunities. Many of their recommendations have been implemented and business benefits realised. However, the challenges of understanding the implications of changes to climate and ecosystems, on which our business depends, and of improving the impact of our operations on local livelihoods, are long-term and complex. We continue to address these challenges, for example working with experts and practitioners from Oxford University and the Overseas Development Institute. Meanwhile I can report that in 2010 TUI Travel PLC was again featured in the Carbon Disclosure Leadership Index and ranked sixth in the FTSE350 on approach to carbon disclosure and risk.

I advocate legislative frameworks that reward and incentivise businesses which, like TUI Travel, strive to continuously improve environmental efficiency and invest in lower-carbon technology. This was a core theme at a recent Parliamentary Reception I hosted at the House of Commons in London. 

The next 18 months will see TUI Travel airlines take delivery of Boeing 787 aircraft with exceptional environmental performance and we will also see exciting developments regarding the use of sustainable aviation fuels. Our largest airline, Thomson Airways, is leading the way in sustainable aviation and on 28 July 2011 will become the first UK airline to fly customers on sustainable biofuelⁱⁱ. However, the long-term viability of these initiatives depends on governments introducing smart fiscal instruments to facilitate their commercialisation and distribution.

Sources of further information:

For further information about TUI Travel, visit:
www.tuitravelplc.com

Tell us what you think: 

We’re keen to hear what you have to say about this report. Please email your views to sustainabledevelopment@tuitravel.com

Peter Long
Chief Executive
TUI Travel PLC

As the Director on the TUI Travel PLC Board with responsibility for driving sustainable development, I am pleased to introduce this latest review of our responsibilities and progress in this area. TUI Travel is the world’s leading international leisure travel group and the environmental and social impacts of our business operations frequently, and rightly, come under the spotlight. We accept this scrutiny. We may not always know the answers, but we do recognise and address sustainability as a critical business challenge, and welcome the opportunity to engage in the debate and report our progress.

The past year has seen our businesses continue to drive eco-efficiencies, which have brought financial as well as environmental benefits. There has been considerable focus on improving environmental data management, working with external experts as well as boosting our own knowledge and resource. As a result I am pleased to report that two of our airlines, Thomson Airways and TUIfly Nordic, are now ISO 14001 certified, and that our UK businesses have been awarded the Carbon Trust Standard. Significant cost savings have also been tracked – approximately £16 million between 2008 and 2010 – due to environmental initiatives.iii Thus the Group is well-positioned in the face of recent and anticipated carbon legislation, as well as in relation to current and forecast increases in energy and fuel costs.

Sustainability has also stimulated a number of product innovations in the past year, for instance TUI Central Europe launched an energy consultancy business for hotels, and TUI Specialist & Activity introduced 25 new hybrid vessels into Le Boat’s fleet, enabling cruising under solar-electric generated power.

A key pillar of TUI Travel’s strategy is the growth of our differentiated hotel portfolio which delivers the highest levels of quality and customer satisfaction. Sustainability performance goes hand in hand with this strategy, and we have seen a correlation between hotels certified to environmental and social standards and high customer satisfaction results. In 2010 we published the TUI Travel PLC ‘Guidelines for Environmental Sustainability in Hotels’ which explain the standards we aspire to and the business case for adopting them. In the past year we organised three sustainability conferences for key suppliers, and we pledge to continue to support our differentiated hotels on their sustainability journey, helping them lighten their environmental footprint and improve their local economic impact.

In 2010 we conducted significant research across eight countries into customer expectations of TUI Travel in regard to sustainability. The results were clear – the overwhelming majority of holidaymakers wanted their tour operator to communicate clearly how they are addressing the sustainability challenges associated with their holiday. In TUI UK & Ireland my management team and I have responded by developing 20 ‘Holidays Forever’ three-year commitments. This year I will be working with my senior management colleagues to develop a set of long-term goals applicable to the wider Group. In this respect I particularly look forward to working with Jacky Simmonds, Group HR Director, who is driving sustainability engagement at Group Management Board level and with Jane Ashton in the newly-created role of Director of Group Sustainable Development.

Sources of further information:

Guidelines for Environmental Sustainability in Hotels
www.tuitravelplc.com/sustainabledevelopment

TUI Travel international consumer survey
www.tuitravelplc.com/reportingcentre

Holidays Forever
www.holidaysforever.co.uk

Johan Lundgren
Managing Director
TUI Travel PLC
Northern Region
PLC Board representative
for sustainable development