A deal, already causing discussions in the European tourism industry, was signed on June 23: Germany’s largest tour operator, TUI, acquires a 20% share of the Swiss travel special travel to Turkey, Bentour. Correspondingly, Bentour will acquire 20% of TUI’s subsidiary, Nazar Nordic, through shares.
Although the agreement is still under the approval of the competent competition authorities, the signing of the contracts marks a new phase for the two sides’ relations – and possibly for the wider market for organized holidays.
Advantages for both sides
TUI seems to strategically aim to strengthen its presence in a growing medium-sized tour operator, which has established its reputation for both consumers and high-level tourism professionals. Bentour, based in Zurich, has in recent years been constantly increasing its market share, specializing in all-inclusive holidays in Turkey and Greece.
For its part, Bentour gains direct access to new markets through the agreement: the Scandinavian countries. Nazar Nordic, active in Denmark, Sweden, Norway, and Finland, offers Bentour the key to entering these markets vigorously, where it has not yet had a real presence. So far, Bentour has been particularly active in German-speaking Europe – Germany, Austria, and, of course, Switzerland.
Convergence or competition?
The deal raises reasonable questions as to whether the two companies will continue to operate autonomously or whether it is the first step in a greater integration. Sources on the German tourist website Touristik Aktuell report that there is no immediate plan for business cooperation between Bentour and TUI. However, TUI’s strategic positioning creates conditions that may lead to a closer cooperation in the future – or even to further market concentration.
It is worth noting that the two companies are largely active with a similar product and in similar destinations: All-inclusive holiday packages in Turkey and Greece. This creates scenarios of synergies and risks of domestic competition.
One possible scenario is that Bentour to take over in the future, Nazar’s incoming tourist work in Turkey – a move that would further strengthen its position as a specialist in the region and allow TUI to focus on other markets or sectors.
Where is the market driven?
This move comes at a time when the European tourism market seems to be back dynamically after the pandemic, but also to rearrange. Large companies are looking for flexibility, local know-how, and access to new markets, while smaller players seek support, distribution networks, and development capital.
The case of Tui and Bentour is a typical example of this trend. TUI ensures presence in a growing and specialized company, and Bentour gains access to new markets with high dynamics and expansion.
The question remains: Is this an individual strategic cooperation or the forerunner of a new phase of mergers and synergies in the European tourism industry? The answer will be judged next time, both by the moves of the two companies and by the reactions of their competitors.
