Announced this past May, the acquisition of Paris-based Transat France—the parent company, Transat, is based in Montreal—by TUI has made the latter the largest tour operator for the combined German and French overseas inbound source markets, No. 4 and No. 7, respectively, for the United States. Together, the two source markets sent more than 4 million visitors to the USA in 2015.
The process of clearing the acquisition through government regulatory agencies that reviewed the transaction for any anti-competitive aspects as well as its impact on the jobs of those employed by the Transat brand was completed by the end of September. According to published reports, TUI already has a 16 percent share of business volume in German and now, following the completion of the Transat purchase, it has a 21 percent market share in France. Prior to the acquisition reported figures gave TUI a 12 percent market share and Transat France 9 percent.
TUI paid €54 million ($62 million) for Transat France, which owns the well-known Look Voyages and Vacances Transat brands, employs a workforce of 560 and had 375,000 customers.
The French travel trade news site suggested that, with the completion of the deal, TUI can take advantage of TUI Group’s reach into other markets, economies of scale and the synergies that it benefit from as the company folds all national brands into one TUI brand—a move announced earlier this year and expected to be complete by late 2017.
What both companies brought to the new TUI France:
– Turnover: € 613m ($665.5 million)
– 704,000 customers
– 12 percent market share
– No. 1 in the medium-haul markets
– 46 holiday clubs
– 717 employees (end of September 2016)
– 55 own travel agencies including 25 TUI stores
– 156 agents including 10 TUI stores.
– Turnover: € 460 million ($500 million)
– 450,000 customers
– 9 percent market share
– No. 1 in North America, Mexico, Ireland, Senegal, Bulgaria
– 40 holiday clubs
– 582 employees (staff at the end of September 2016 excluding clubs)
– 42 own travel agencies
– 17 franchisees.