Europe's largest tour operator TUI Travel today announced plans to close 100 of its high street travel agencies in the UK following a post-merger review of its business .
The group, formed in March last year by the £3 billion merger between First Choice and Thomson Holidays, has not said how many jobs will be affected by the closure move - part of an additional £50 million of cost savings announced by TUI Travel .
TUI Travel is Europe’s biggest travel group, with over 40,000 members of staff employed across Europe and 27 million customers.
The cuts follow a 100-day review led by chief executive Peter Long to see where further cost savings and investments could be made.
Mr Long, who previously ran the First Choice business, said the group wanted to increase cost savings by a further £50 million to £150 million a year, with £40 million of the increase relating to the UK .
The TUI head said capacity across the European holiday market was around 5-10 per cent lower than a year ago as travel firms reduce the number of breaks they sell in the hope of boosting prices.
But he added there was no indication that the slowdown hitting the high street would affect holiday bookings, instead revealing an 8 per cent rise in sales at TUI Travel for summer 2008.
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TUI Travel To Close 100 UK Agencies Tue, 29 Jan 2008      Recommended linksTravel agents resourceHoliday checklist Online holiday guides UK travel agent directory Tour operator TUI Travel Reveal 5 Per Cent Rise In Underlying Profits TUIs Online Booking Conversion Rates Soar First Choice and Thomson Holidays to Merge |
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