annual report  accounts for the year ended 30 september 2010 tui travel plc
tui travel house
crawley business quarter
fleming way
crawley
west sussex
rh10 9ql
t elephone 0044 01293 645700
wwwtuitravelplccom
tui travel plc  annual report  accounts for the year ended 30 september 2010
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the investment case
reasons to invest in tui travel plc london stock exchange ticker code tt
experienced management team
each of our businesses is led by highly experienced management teams giving us real strength and depth  
of leadership  our leaders have demonstrated excellent track records of building strong businesses and 
creating value
marketleading brands
we have some of the most recognised and highly trusted brands in the industry which reduces the  
cost of customer acquisition and means we are highly attractive to our accommodation providers and 
distribution partners
marketleading positions
we are either the number one or number two tour operator in almost all of our mainstream source 
markets including leadership positions in the uk germany france belgium and the netherlands
market consolidation
consolidation in some of our key markets has improved the structure of the industry helping to remove 
excess supply from the market  
economies of scale
we buy over 150 million bednights per year making us one of the largest distributors of accommodation 
globally  our scale gives us a competitive advantage when negotiating with suppliers allowing us to offer 
excellent value to our customers
turnaround potential
in 2009 we identified £142m of turnaround opportunities as we took strategic actions to improve margins 
in a number of underperforming businesses  after delivering £53m of these in 2010 a further £89m of 
opportunities for margin improvement remains  
exposure to higher growth specialist travel
almost one third of our profits are generated by our portfolio of specialist businesses which enjoy high 
growth and margin characteristics including specialist tour operators offering unique experiential travel 
experiences and online accommodation providers  
emerging markets
we have established a significant presence in the fastgrowing russian and ukrainian source markets 
leaving us well positioned to take advantage of the potential in these markets  we have an existing 
presence in brazil china and india and are investigating the opportunities in these exciting markets wwwtuitravelplccom
strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 01
group at a glance
ifc group at a glance
ifc the investment case
02 tui travel overview
04 our structure
07 financial highlights 
08 strategic overview
08 chairman’s statement
09 chief executive’s statement
10 chief executive’s interview
12 market overview
14 our strategy
18 key performance indicators
20 principal risks
24 people
27 health and safety
28 sustainable development
32 business performance
32 group performance
33 segmental performance
40 current trading
42 governance
42 board of directors
44 directors’ report
47 statement of directors’ responsibilities
48 corporate governance report
53 remuneration report
63 independent auditors’ report
64  financial statements
64 consolidated income statement
65  consolidated statement of  
comprehensive income 
66  consolidated balance sheet
67  consolidated statement of changes in equity
68  consolidated statement of cash flows
69  notes to the consolidated financial statements
136  company balance sheet
137  notes to the company’s financial statements
142 shareholder information
142 shareholder profiles
142 contacts and advisers
143 shareholder discount
144 index
contents
tui travel plc is the  
world’s leading leisure  
travel company 
find our 2010 annual  
report online at  
httpara2010tuitravelplccom
the annual report contains forwardlooking statements that are subject to  
risk factors associated with amongst other things the economic and business 
circumstances occurring from time to time in countries and sectors in which  
the group operates  it is believed that the expectations reflected in these 
statements are reasonable but they may be affected by a wide range of variables 
which could cause actual results to differ from those currently anticipated wwwtuitravelplccom
02 tui travel plc annual report  accounts 2010
group at a glance
tui travel overview
who we are
tui travel plc tui travel plc group of companies or the group  
is the world’s leading leisure travel company operating in over  
180 countries with more than 30 million customers in 27 key  
source markets  
tui travel has over 200 brands which are comprised of market
leading mainstream brands reported under mainstream sector  
and specialist travel businesses reported under specialist sectors  
tui travel is focused on providing customers with a wide choice of 
differentiated and flexible travel experiences  
tui travel is headquartered in the uk and employs approximately 
49000 people  it is listed in the ftse 100 and has the ticker code tt
making travel 
experiences special
creating superior shareholder value by
being the leading global leisure travel group
providing customers with a wide choice
of differentiated and flexible travel
experiences to meet their changing needs
product 
 content
distribution
 brands
people 
operational
effectiveness
growth  
capital
allocation
customer obsessed value driven playing to win responsible leadership
vision
go to
page 14
go to
page 25
strategic goal
strategic
imperatives
values
our strategy wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 03
where we operate
tui travel is a truly global player operating  
in 27 key source markets  
our 27 key source markets
australia
austria
belgium
canada
china
czech republic
denmark
finland
france
germany
hungary
india
ireland
italy
luxembourg
netherlands
new zealand
norway
poland
russia
slovenia
spain
sweden 
switzerland
ukraine
united kingdom
united states
our key brands
tui travel operates under more than 200 brands  a selection of our wellknown  
brands includes
tui operates in the german source 
market and is the marketleading tour 
operator brand
wwwtuicom 
 
 
thomson is a leading uk tour operator 
which also offers flights and 
accommodation
wwwthomsoncouk 
 
fritidsresor is a tour operator and  
retail business in the swedish source 
market offering package tours to the 
mediterranean and destinations 
worldwide
wwwfritidsresorse
marmara is the leading tour operator 
in france that provides exclusive 
package holidays to mediterranean 
destinations  
wwwmarmaracom 
 
the moorings is the world’s premier 
yacht charter company and offers hire  
of its customdesigned yachts in north 
america uk france and germany
wwwmooringscom 
quark expeditions is the world’s 
leading operator of expedition cruise 
voyages to the polar regions
wwwquarkexpeditionscom
laterooms is the uk’s leading online 
accommodation site offering late 
availability deals in over 44000 
properties worldwide
wwwlateroomscom 
 
hotelbeds is a leading businessto
business provider of destination 
services and accommodation online  
to wholesalers travel operators and 
travel organisers
wwwhotelbedscom
hayes  jarvis operates in the uk 
source market and creates specialist 
holiday itineraries for discerning 
travellers to 55 destinations worldwide  
wwwhayesandjarviscouk 
 
mostravel is one of tui russia’s  
tour operating and retail businesses   
it specialises in the destinations of 
turkey and egypt 
wwwmostravelcom wwwtuitravelplccom
04 tui travel plc annual report  accounts 2010
mainstream is the largest sector in terms of size financial performance and employee numbers  it 
comprises leading tour operators and ‘power’ brands and operates a fleet of 143 aircraft and circa 3500 
retail shops  there are three divisions 
group at a glance
our structure
in the financial year ended 30 september 2010 tui travel was organised and managed through four 
sectors – mainstream activity specialist  emerging markets and accommodation  destinations  
mainstream sector
for further information  
see page 33
key activities
northern region
the northern region comprises the distribution 
tour operating businesses and airlines in the uk 
and ireland the nordic countries and canada   
the uk operates some of the best known and 
loved travel brands including the uk’s third largest 
airline thomson airways  the nordics comprises 
the markets of sweden norway denmark and 
finland  the nordics has number one brands in all 
markets except finland where it is number two  
top selling brands
thomson first choice 
and fritidsresor
customer numbers
66m excluding canada
top three destinations
balearics greece and turkey
central europe
central europe comprises the distribution tour 
operating businesses and airline in the source 
markets of germany austria switzerland and 
poland  germany is our largest source market   
in germany and austria tui is the marketleading 
brand  the businesses are focused on providing a 
unique service and great products at the best value 
to our customers  
top selling brands
tui 12fly and l’tur
customer numbers
79m
top three destinations
spain germany and turkey
western europe
western europe comprises the distribution tour 
operating businesses and airlines in france 
belgium and the netherlands  in each country the 
brands have marketleading positions  
top selling brands
jetair holland international  
and marmara
customer numbers
51m
top three destinations
spain greece and turkey
by customer numbers wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 05
key activities
specialist  
emerging markets 
sector
for further information  
see page 39
the specialist  emerging markets sector is  
an international portfolio of travel businesses 
focusing on specific destinations premium travel 
experiences or particular customer demographic 
segments often with differentiated and exclusive 
product  the sector consists of 40 businesses 
operating from north america europe and most 
recently emerging markets such as russia and 
ukraine  
top selling brands
mostravel turchese and  
hayes  jarvis
customer numbers
08m  
excluding russia  ukraine
top three destinations
us egypt and italy
accommodation  
destinations sector
for further information  
see page 37
the accommodation  destinations sector ad 
sells and provides a range of services in destination 
to tour operators travel agents corporate clients 
and direct to the consumer worldwide  services 
include hotel accommodation transfers excursions 
round trips organising meetings incentives 
conferences and events mice cruise handling  
as well as integrated website solutions for our 
customers  ad is structured along key business 
lines – business to business business to consumer 
and specialist
top selling brands
world of tui umbrella brand for 
group customers including tui españa 
and tui hellas  hotelbedscom and 
lateroomscom
customer numbersroomnights
29m offline passengers 125m room 
nights 168m
top three destinations
spain uk and portugal
by customer numbers
68
13
4
15 mainstream sector
activity sector
specialist  emerging markets sector
accommodation  destinations sector
the chart below illustrates the underlying operating profit mix by sector
before central costs
the specialist sectors for the year ended 30 september 2010 included accommodation  destinations 
activity and specialist  emerging markets
specialist sectors
this sector has over 40 activity travel businesses 
that operate under five divisions – marine 
adventure ski student and sport  each of  
these divisions has marketleading positions   
the adventure businesses take more customers  
to iconic adventure destinations than any other 
operator  the sport businesses are leaders in 
supporterled cricket and rugby tours in the uk 
and australia while the student businesses 
encompass everything from the traditional school 
trip to france to trek holidays for groups of young 
adults in the himalayas  this sector also includes 
the leading yacht brands in europe and the us and 
the world’s largest ski operator  
top selling brands
crystal ski the moorings and le boat
customer numbers
11m
top three destinations
france austria and italy
activity sector
for further information  
see page 38 wwwtuitravelplccom
06 tui travel plc annual report  accounts 2010
key activities
accommodation  destinations
the ad sector is a leading player in the 
accommodation and destination services industry 
competing in four key business lines
accommodation wholesaler – worldwide online 
hotel intermediary offering over 34000 hotels via 
the brands hotelbeds bedsonline and hotelopia
accommodation online travel agent – providing 
hotel rooms to the final customer through popular 
online brands laterooms and asiarooms
destination services – providing services to 
customers when they arrive indestination such as 
airport transfers excursions or tour trips  these 
services are provided in 42 countries both to leisure 
travellers and to corporations  the brands include 
tui españa tui hellas and pacific world
cruise handling – offering turnaround services 
excursions and port agency services to the main 
cruise lines on a global scale through the 
intercruises brand  
top selling brands
world of tui umbrella brand for 
group customers including tui españa 
and tui hellas  hotelbedscom and 
lateroomscom
customer numbersroomnights
29m offline passengers 125m room 
nights 168m 
top three destinations
spain uk and united states of 
america
specialist  activity
this sector is the world’s leading provider of 
specialist and experiential travel  it has over 100 
specialist and activity brands delivering a range of 
unique customer experiences with the ethos of  
‘if you can dream it we can take you there’  the 
sector operates under six divisions – adventure 
education marine north american specialist 
sport and specialist holiday group
top selling brands
crystal the moorings and  
hayes  jarvis
customer numbers
16m
top three destinations
france austria and italy
emerging markets
emerging markets is a sector in development  
at tui travel  it is a growing portfolio of travel 
businesses focusing on the specific source  
markets of brazil russia and cis india and china  
tui travel is the first international tour operator  
to build a presence in russia and cis  the tui 
russia  cis brand was launched in march 2010  
tui travel continues to investigate its optimal 
participation strategy for brazil india and china
russia  cis division 
top selling brands
mostravel vko travel and voyage kiev
customer numbers
05m
top three destinations
turkey egypt and greece
group at a glance
our structure from 1 october 2010
tui travel plc will continue to report in four sectors  the mainstream sector remains unchanged   
the remaining sectors have been refined and renamed to reflect the strategic priorities of tui travel 
as it develops  these sectors are now called accommodation  destinations specialist  activity 
and emerging markets  
by customer numbers wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 07
revenue
10  £13525m
 2
09 restated £13851m
underlying operating profit
10  £447m
 11
09 restated  £401m
underlying profit before tax
10  £337m
 4 
09 restated £324m
underlying earnings per share
10 220p
 10 
09 restated  200p
dividend per share
10 110p
 3 
09  107p
underlying operating profit and underlying profit before tax are from continuing operations and exclude 
separately disclosed items amortisation of acquisition related expenses goodwill impairment and interest and 
taxation on the group’s share of the results of joint ventures and associates  underlying profit before tax also 
excludes separately disclosed financial expenses  underlying earnings per share excludes the same items net 
of related taxation
the references to the financial results contained in pages 2 to 63 are unaudited pro forma results for the 
year reported before the estimated financial impact of the closures of european airspace as a result of 
volcanic ash  see note 1biii on page 71 for basis of preparation of the pro forma financial information
group at a glance
financial highlights wwwtuitravelplccom
during the year we increased progress on the 
delivery of our synergy target of £200m and 
delivered £75m of incremental benefit in the full 
year  this has given us a total delivered benefit  
of £195m since the merger in september 2007  
progress on turning around some of our 
underperforming businesses in mainstream is 
taking longer than originally anticipated but we 
remain confident that the drivers we have in place 
will deliver the targeted outcome  overall growth 
in our specialist sectors remains strong and our 
joint venture in russia and ukraine has performed 
in line with our expectations
results
the group has achieved an 11 increase in 
underlying operating profit of £447m 2009 restated 
£401m on revenue of £13525m 2009 restated 
£13851m  underlying profit before tax is up 4 to 
£337m 2009 restated £324m  underlying earnings 
per share increased 10 to 220p 2009 restated 
200p  the group statutory loss before taxation 
was £36m 2009 restated £94m
dividends
the board is recommending a final dividend  
of 78p per share  on 11 may 2010 the board 
recommended an interim dividend of 32p per 
share thereby resulting in a full year dividend of 
110p per share 2009 107p  the group has a 
progressive dividend policy and will look to maintain 
underlying dividend cover at just over two times
board
post year end on 21 october 2010 the group 
announced that paul bowtell chief financial 
officer will leave the board on 31 december 2010  
08 tui travel plc annual report  accounts 2010
strategic overview
chairman’s statement
we have delivered results in line with our expectations after experiencing another year of challenges  
not least the closure of much of northern europe’s airspace in april when the icelandic volcano 
located below the eyjafjallajoekull glacier erupted and created an enormous ash cloud in the 
atmosphere  this closure cost our group £104m and affected some 400000 of our customers   
at a macro level economic uncertainty and concern about how governments are seeking to tackle 
deficits were also factors that we faced during the year  
on 30 november 2010 the appointment of will 
waggott as chief financial officer of the group 
was announced with immediate effect  will is 
already a tui travel plc board member and was 
the group’s commercial director  
sustainable development
for tui travel sustainability is an important 
business issue and opportunity  our vision for 
sustainable development is to ‘make travel 
experiences special’ whilst minimising our 
environmental impact respecting the culture  
and people in our destinations and offering real 
economic benefit to local communities  as a 
leading tour operator our challenge is to prepare 
for a lowcarbon society by further reducing our 
environmental impacts and as a business we are 
monitoring and preparing for regulatory proposals 
on climate change that could have a fiscal impact 
on our group
colleagues
as a group we have circa 49000 colleagues located 
across the world  their hard work and dedication  
is much appreciated and this year our value of 
‘customer obsessed’ was well and truly 
demonstrated by their actions throughout the 
closure of airspace in april  we received many 
communications from our customers about their 
outstanding efforts and on behalf of the board  
i would like to thank them for their valued 
contribution to making our customers’ holiday 
experiences special
dr michael frenzel
nonexecutive chairman group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 09
new structure of the group see page 6 and 
succession planning
we operate in a highly regulated industry and 
dialogue at both a national government and 
european commission level is an important aspect 
of our daily lives both at tui travel and as 
members of various industry and trade bodies   
we believe that it is important that there is a level 
playing field across leisure travel companies airlines 
and intermediaries and we work to ensure that our 
views are heard and understood not only in our 
source markets but also in the destinations we 
operate in  for more information see page 12
this year we have made progress on delivering our 
strategic imperatives albeit not as great as we would 
have wished  we know what we need to do to 
deliver longterm sustainable growth and have 
identified the levers with which to do that see 
strategic imperatives page 14  trading in the new 
financial year has started well but we believe that 
given that it is so early in the year and economic 
uncertainty remains it is prudent to be cautious 
about our outlook
in a year when our 49000 colleagues have dealt with 
so many external and internal challenges i would like 
to thank them personally for all their efforts  we 
have an outstanding team that delivers dayin day
out and i am extremely proud of what they achieve 
and of all the businesses that make up tui travel  
peter long
chief executive
as the world’s leading leisure travel company this 
financial year we have faced headwinds both within 
and outside of our control including volcanic ash 
economic uncertainty see page 10 and one 
instance of our own making  
we identified that over a number of years within 
tui uk  ireland there was a failure to reconcile 
balances adequately in legacy systems in the retail 
and tour operator businesses  this has resulted  
in us having to write off £117m of irrecoverable 
balances  we are therefore restating our 2009  
full year results with a reduction of underlying 
operating profit of £42m to £401m and a reduction 
in the underlying earnings per share of 38p from 
238p to 200p  we have also reduced our opening 
reserves at 1 october 2008 by £70m from £2596m 
to £2526m  a full and detailed audit and business 
review has been undertaken and we are confident 
that we have now rectified the weaknesses
having experienced some exceptional external 
challenges the summer season traded out strongly 
across the group  it was however not sufficient to 
recover the increased losses and costs from earlier in 
the year  we have experienced a later booking curve 
due in principle to the economic uncertainties that 
our customers have continued to face  this is one of 
the reasons why it is so important that we relentlessly 
focus on our strategic imperatives to ensure that we 
are able to deliver on our strategic goal  
as part of the focus during the year we made a 
number of changes to our group management 
board see page 24  these changes reflect the 
view the ceo’s interview online
watch the ceo’s interview online at  
httpara2010tuitravelplccom
strategic overview
chief executive’s statement 
following the success last year of launching our annual report  accounts fully online we are doing 
the same this year with improvements to the functionality of the website and to the content  
reducing our environmental impact is important to us and the fact that more than 70 of our 
shareholders elect to receive the annual report  accounts online proves that it is important for  
our stakeholders as well wwwtuitravelplccom
10 tui travel plc annual report  accounts 2010
this year has been a difficult one for tui 
travel  could you sum it up for us
we started the year off well in terms of trading 
despite the fact that there was some bad weather 
in january which disrupted our programme   
that was nothing compared to what we then had 
to deal with during april when we had the closure 
of airspace and all of our 143 aeroplanes were 
grounded for over a week  circa 400000 guests 
were affected either by cancellations or having  
to be repatriated from their holidays  this was  
a huge level of disruption but i think what we 
demonstrated as an organisation was our absolute 
professionalism to repatriate all our customers 
whilst causing them the minimum amount of 
disruption  our customers were extremely grateful 
and had high regard for the professionalism of our 
staff within our company
after the general election we had further closure 
of airspace and that really did start to spook our 
customers because they were unsure as to whether 
they could be stranded when they were on holiday  
this clearly had a negative effect and a number  
of our customers took the decision to delay their 
bookings and that had a very adverse impact on 
our business  
i think we then went on to have the perfect  
storm because of ash the general election the 
emergency budget and the world cup – all these 
elements caused disruption in terms of our 
customers’ normal booking patterns  after the 
world cup we saw a resumption in terms of 
demand and as we went through the high season 
we had very strong sales which i think confirmed 
the importance customers place on their main 
summer holiday and that it’s a musthave but 
when they book depends on the circumstances 
prevailing at the time  we were unable to recover 
the impact of this perfect storm during the months 
of may june and particularly in early july  
as we went through our audit process we also 
uncovered some control issues within the group in 
our uk business  we found that our tour operating 
and retail systems were not being properly 
reconciled and that there was an overstatement of 
revenue  this has now been fully investigated and 
controls have been put in place to ensure that this 
will not reoccur again  we have also undertaken a 
full review of financial controls across the group 
and i am satisfied that this event has not occurred 
in any other part of our business
we continue to see smaller tour operators and 
airlines across europe going out of business  
what does that say about the quality of the 
tour operating industry
i think firstly it says that there has been weakness 
of demand and the smaller companies suffer more  
invariably the smaller companies that have failed 
have not had appropriate capital structures and  
as a consequence i think we will now be a major 
beneficiary as customers migrate away from the 
smaller companies to those larger international 
organisations which are well financed have been 
trading for decades and have very strong 
reputations  i believe therefore that we can 
capitalise on this and there is an important 
message that we give to our customers – when you 
book with us you have peace of mind  we have the 
experience we have the depth of management the 
choice of holidays and most importantly we have 
the financial strength to ensure that we will deliver 
you a great holiday
you launched tui russia  cis this year   
how is that area of the business performing
we’re very excited by the opportunity within 
russia  there is a huge emerging middle class who 
like to travel and they like to go to sun and beach 
destinations  obviously being geographically 
located in the northern hemisphere where the 
weather particularly in the winter is severe it plays 
very much to our strengths in terms of selling and 
delivering sun and beach holidays to large volumes 
of customers in a very efficient way  we have 
partnered with a russian partner – we think this is 
very important as we get to know and understand 
the different culture that we operate in and we’re 
very happy in terms of the partnership that we have  
we launched the tui brand bringing tui as a 
consumer brand to russia in march and that has 
been very well received within the russian market  
so we are excited by the opportunities but we are 
also realists and know that this is a market that is 
going to have very strong growth characteristics 
but it will be some time before we see the 
profitability that we enjoy within the european 
markets  our investment to date has been modest 
so the risk profile is right but we’re there we have 
the platform and the russian market could grow to 
be one of our biggest markets within our group
strategic overview  chief executive’s interview
an interview with  
chief executive peter long group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 11
and first choice and that is where the bulk of the 
synergies have come from  in terms of growth 
opportunities there are a number of areas firstly 
continuing to improve the underperforming 
businesses such as corsair  i am delighted that  
we have now agreed a new social plan with all our 
colleagues at corsair to create a viable business 
going forward and we will implement that 
restructuring over the next 24 months
we are also looking at further improvements within 
our german and uk businesses particularly in the 
area of new systems which will improve the 
efficiency of our business  the other key aspect  
of our business is having more unique holiday 
experiences those differentiated holidays  we will 
continue to introduce more concept hotels that will 
enable us to increase the number of customers 
going on holiday with us within our mainstream 
businesses  equally we also have good growth 
opportunities across all our specialist businesses 
where there is now a growing demand for different 
types of holidays the nonsun and beach  that 
might be a sailing holiday a walking holiday or a 
polar expedition cruise  customers are looking to 
do different things and we have this very broad 
portfolio of unique specialist holidays within  
the group
one of your values is responsible leadership  
how do you put this into practice in the group
we’re very focused on sustainable tourism and 
we’re looking constantly at ways of reducing the 
level of carbon emissions as we transport and take 
our customers on holiday  one way we do this is 
by having one of the most modern aircraft fleets  
in the world  we continue to invest in new aircraft 
types and we’re very excited about the delivery of 
our new 787 dreamliners which come into the fleet 
in 2012  they burn 20 less fuel than the 767 fleet 
we currently operate
a very important part of our organisation 
absolutely key is our leadership and the senior 
management team that run and operate our 
businesses and motivate and manage our 
colleagues  we continually also look to develop 
talent within the organisation because one of the 
critical success factors within our business is 
ensuring we have the right management in the right 
place to continue to build and grow our businesses
peter long
chief executive
you have changed the structure of the group 
from 1 october 2010  why have you  
done that
we’ve modified the structure  we’ve got our three 
regional geographies for our mainstream business 
– no change at all  i’ve taken the specialist and 
activity sectors and merged them into one   
the other part of the specialist business was 
emerging markets and that is now a sector in  
its own right because we want to be focusing on 
the opportunities in russia which i have already 
alluded to but we’re also looking at the other  
bric economies of india china and brazil   
our accommodation  destinations sector 
remains unchanged
are you worried about the lowcost carriers 
becoming tour operators and how will you 
counter the threat of the online travel  
agents otas
we continue to look at all our competition  one of 
the greatest strengths that we have as an 
organisation is the fact a large proportion of the 
holidays we offer are unique experiences that our 
customers can only book with us and that gives us 
a platform to set us aside from the rest of our 
competitors  with regard to the lowcost carriers 
one of the areas implemented during summer 2010 
was a greater choice for our customers in terms of 
the duration of holidays  we’ve introduced 10 and 
11 nights on top of our existing seven and 14night 
offerings  they have proved to be very popular 
and we will continue to offer further different 
duration lengths in order to give our customers  
the greatest choice of holiday experiences
with regard to online travel agents i think we 
compete in two different ways within our 
mainstream businesses and taking the uk as an 
example 40 of our bookings are transacted 
online  we are also in the online travel agent space 
in the specialist area which is accommodation only 
and we have two very important businesses within 
the group which are laterooms and asiarooms 
and these businesses are extremely successful and 
growing very rapidly
you have all but delivered the synergies 
identified at the time of merger  how are you 
going to grow the business going forward
i am very pleased with the success of the 
integration of our two uk businesses thomson 
view the ceo’s interview online
watch the ceo’s interview online at  
httpara2010tuitravelplccom wwwtuitravelplccom
12 tui travel plc annual report  accounts 2010
tui travel participates 
in markets which 
account for £343bn of 
global travel spend
page 10  other significant events in destinations 
that impacted tourism included the civil unrest in 
bangkok and the strikes and unrest in greece  
despite a period of economic decline and industry 
turmoil the overall travel market is expected to 
continue to grow  unwto projects longterm 
growth for international tourism with international 
arrivals expected to reach 16 billion in 2020 nearly 
double 2010 figures 880 million 2010
the package holiday remains an important part of 
the future of leisure travel but as the traditional 
mainstream markets mature we are continuing to 
offer greater choice of destinations unique and 
differentiated products and look to new markets  
for growth  we believe the bric brazil russia 
india and china countries represent a significant 
opportunity to participate in longerterm travel 
growth trends and have high growth potential  
the fastest growing area of leisure travel continues 
to be independent travel 3 cagr euromonitor 
which includes selfpackaged holidayscomponent
based packages activity holidays and online travel 
agents  the global online travel market is estimated 
to be worth £52bn phocuswright with online sales 
of travel retail products representing 34 of total 
travel sales in 2009 euromonitor  
the political climate
travel and tourism are heavily regulated industries  
as a global organisation tui travel has a public 
affairs team that works with governments and 
regulators across our key source markets to address 
issues that affect our industry and our customers
the issue of air passenger rights has assumed 
particular importance the european institutions 
having focused heavily on this issue during the year  
our public affairs team has engaged regularly with 
politicians and officials both in brussels and in key 
source markets in order to ensure regulation that 
properly balances the needs and interests of 
customers and industry
the economic environment
following the international economic and financial 
crisis in 2008 the global recession impacted 
negatively on almost all major markets in 2009  the 
gdp of our two largest source markets germany 
and uk declined by 6 and almost 5 respectively 
euromonitor 2009  the economic uncertainty 
continued into 2010 with concerns that there would 
be a doubledip recession and ongoing volatility in 
fuel prices and currency
despite this as 2010 progressed there has been 
recovery  gdp growth has taken place in most major 
source markets with germany at 22 and the uk  
at 16 june 2010 trading economics statistics  
however the levels of growth have not been enough 
to offset the global recessionary environment of 
2008 and 2009  unemployment has continued to 
rise with german and uk rates at 76 and 78 
respectively trading economics statistics  the 
economic outlook for 2011 remains uncertain with 
different markets at different points in the  
recovery cycle
the leisure travel market
travel and tourism remains the world’s largest 
export industry with the leisure travel market 
estimated to be worth £740bn euromonitor  tui 
travel participates in markets which account for 
£343bn or 46 of global travel spend  our three 
largest markets combined germany france and 
uk contribute 70 of the £343bn  
after 14 months of decline which saw further tour 
operator and airline failures growth returned to 
international tourism in the last quarter of 2009  
with an increase in international tourist arrivals of 
2 united nations world tourism organisation 
unwto  this recovery continued into the early 
part of 2010 but the industry faced a significant 
setback in aprilmay 2010 with the closure of 
european airspace due to the volcanic ash cloud  
this unprecedented event had a significant financial 
impact on both the industry and tui travel see 
strategic overview
market overview
£317bn
£26bn
our three largest markets
france
uk
germany
£80bn
£57bn
£102bn
 tui relevant core markets
uk sweden germany
france belgium netherlands
austria poland switzerland
 canada
euromonitor group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 13
allinclusive packages and cruising proved 
particularly popular as consumers sought financial 
certainty of their total holiday spend  
the destinations of morocco egypt and turkey 
continued to grow strongly in popularity due to 
favourable currency rates  departures to the 
eurozone decreased but these destinations still 
attracted the largest percentage of mainstream 
package holidaymakers  longhaul destinations 
including thailand and goa remained popular  
and particularly those destinations offering all
inclusive products
with high internet penetration rates uk nordics 
and germany at 75 consumers increasingly turned 
online to research and book their holiday  social 
media and customer travel review sites gained in 
popularity and prominence and are a key influencer 
on the consumer’s decision making process
despite the tough conditions there is evidence that 
consumers are feeling more positive about their 
holiday plans for next year and demand for holidays 
remains healthy  increased flexibility in duration and 
ease of booking for consumers remain key factors  
in the holidaymaking decision process  recent 
consumer research commissioned by tui travel 
across its major source markets shows planned 
holiday spending has either slightly increased or 
remained stable compared to consumer sentiment in 
september 2009 tui consumer sentiment monitor 
october 2010  
outlook future trends and factors
tui travel has continued to prove resilient in  
these challenging times and maintains its market
leading position  tui travel has a 35 share of  
the european package holiday market and  
number one or two brand positions in its core 
mainstream markets  
in the bric economies tui travel’s participation 
strategy is most developed in russia and ukraine 
where it is the first international tour operator  
to build a presence  tui travel continues to 
investigate its optimal participation strategy for 
brazil india and china
in independent travel tui travel has significant 
positions in a number of segments including online 
accommodation marine adventure education 
language travel ski sport and specialist holidays  
and plans to continue to grow this portfolio of 
businesses  tui travel has a strong online presence 
for package holidays independent travel and online 
accommodation sites and continues to review 
growth opportunities in the online arena
given the continued economic uncertainty we 
remain cautious about 2011  that said there is 
every reason to believe that the demand for 
international travel will continue to grow strongly  
in the long term
the question of aviation taxation has also figured 
prominently in a number of jurisdictions and we 
have together with trade associations and other 
industry partners sought to press our case for  
a more equitable taxation regime that properly 
rewards and incentivises efficient use of aircraft
financial protection of air passengers continues to 
be an issue particularly in the uk and we have 
continued to lobby stakeholders to ensure a fair  
and affordable system of protection
finally our work to influence the european 
commission to extend the scope of the european 
package travel directive in order to reflect the 
changes in the industry since the inception of  
that regulation has continued to gather pace
the sustainability challenge
travel and tourism accounts for 11 of the world’s 
gdp and 12 of its exports
1
  around 50 of the 
world’s least developed countries rely largely on 
tourism for economic development  however  
travel and tourism are responsible for around 5  
of global carbon dioxide emissions
2
 and increasingly 
national and international carbon legislation is 
coming into force
as a leading tour operator tui travel aspires to  
lead the travel and tourism sector and to lobby for 
sustainability to be embraced as a business issue on 
which the future health of the industry depends   
as a tourism group we take our responsibilities very 
seriously and are working to ensure that sustainable 
development aligns with the group’s key strategic 
imperatives  our challenge is to understand how  
our industry can optimise its social economic and 
environmental benefits for all concerned  tui 
travel’s goal in this respect is to make travel 
experiences special by providing holidays that cause 
minimal environmental impact respect the culture 
and people of destinations and offer real economic 
benefit to local communities  see sustainable 
development on page 28
consumer sentiment
the global recession and uncertain economic 
environment have had an effect on consumer travel 
spending habits in 200910 however for most 
consumers holidays continue to be of considerable 
importance and a planned annual expense  
consumers are more discerning in their choice of 
holidays looking for a greater variety of products 
and destinations flexibility of duration and value for 
money  consumers prioritised their main summer 
holiday abroad and waited much later to book their 
trips to assess both the weather at home and their 
personal finances  
the package holiday saw a resurgence as consumers 
sought to derisk their holidays and book with  
a company that provided financial protection   
1
 united nations world tourism 
organisation unwto tourism satellite 
accounts tsa
2
 united nations world tourism 
organisation unwto united nations 
environment programme unep and 
world meteorological organization 
wmo october 2007 climate change 
and tourism responding to global 
challenges  madrid wwwtuitravelplccom
14 tui travel plc annual report  accounts 2010
summary
• different products to our competitors 
and unique in the marketplace
• high customer retention and repeat 
booking rates
• earlier booking trends
• product innovation 
• growth in the online accommodation 
market 
differentiated content continues to be a central 
pillar of our product and content strategy  we are 
developing a portfolio of exclusive products that  
no competitor can easily match or replicate and 
which is tailored to include additional services  
and facilities that customers want on their holiday  
every one of our businesses offer products that 
are tailored to meet the holiday needs and tastes 
of its customers  
in the mainstream sector the level of differentiated 
product has again increased over the last year and 
currently represents 38 of total holidays  we 
have specific targets in each sector to continue  
to increase this level of differentiation and are 
constantly reviewing and evolving product content  
this year we have expanded our offering of 
mainstream differentiated products  in the uk 
sensatori tenerife was opened following the 
successful introduction of this fivestar concept in 
crete and mexico over the last two years and the 
first choice holiday villages’ portfolio was also 
expanded by two further holiday villages  in the 
nordics three new familyfocused blue villages 
were opened  in germany we continue to 
experience strong demand for our new hotel brand 
sensimar a fivestar spa concept for couples and 
robinson clubs for families  in france product 
differentiation continues with the launch of new 
marmara clubs in new destinations eg sardinia 
and the rollout of the new generation of nouvelles 
frontières hotel clubs  
the portfolio of differentiated content not  
only increases our competitive advantage by 
distinguishing us from the competition it also 
drives higher margins underpinning our plans  
to improve underlying operating margins  
differentiated products have an earlier booking 
profile which increases yields and removes pressure 
in the lates market while customers also benefit 
from a more addedvalue unique experience  
feedback shows that customers appreciate the 
quality and value of these products and higher 
satisfaction levels drive repeat bookings and 
customer retention  
there is also a huge demand from consumers  
for more experiential holidays  in the specialist 
sectors product innovation continues to meet  
this demand  we have created the world’s largest 
marine charter business and are developing a 
number of new yachts that are built exclusively for 
our marine businesses including the new sunsail 
384 catamarans  these new models create a 
leading and differentiated position in the fastest 
expanding section of the yacht charter market  
there is also a strong focus in the education 
division to develop new and differentiated 
products  the purchase of condover hall an 
education campus in the uk provides our jca 
business a specialist in residential school trips  
with a flagship centre for residential activity 
holidays for schools and will be utilised across  
the wider education division  
in the ota market we are building on the success 
of laterooms our online accommodation business 
by investing in increasing the product offering of 
our asiarooms brand  we have increased our own 
hotel inventory in the asian region by 62 7800 
hotels and rebranded the website to capture the 
significant forecasted growth in this market  
strategic overview  our strategy
strategic imperatives
we have a clear strategic goal to create superior shareholder value by being the world’s leading 
leisure travel group providing customers with the widest choice of differentiated and flexible travel 
experiences to meet their changing needs  to help achieve our goal we are focused on four strategic 
imperatives – product  content distribution  brands people  operational effectiveness and 
growth  capital allocation  we continually evaluate the delivery of these four strategic imperatives 
which link through to our key performance indicators  see kpis on page 18
imperative 1 product  content group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 15
summary
• highly trusted brands that provide  
value and quality
• broadening customer choice 
• building our customer relationships 
• increasing controlled distribution 
our highly trusted brands represent excellent value 
for money and drive customer loyalty and repeat 
bookings  the advantages of travelling with a 
leading tour operator were highlighted during the 
april 2010 volcanic ash crisis when we prioritised 
the needs of our customers and provided industry
leading levels of service and support  we have 
marketleading brands in the mainstream sector 
including tui thomson first choice jetairfly 
fritidsresor holland international arke nouvelles 
frontières and marmara  in the specialist sectors 
we have wellknown niche brands that have 
marketleading positions including hayes  jarvis 
sovereign citalia the moorings crystal ski 
lateroomscom and hotelbedscom
our aim is to provide customers with a wide choice 
of holiday options that meet their preferences and 
a convenient range of booking options  by securing 
direct access to customers we can manage and 
deliver the whole holiday experience from booking 
with an agent in our travel shops online or via one 
of our call centres to inresort and aftersales 
service whilst driving customer satisfaction and 
ultimately customer loyalty
in each source market the distribution of products 
is tailored to reflect different customer preferences 
and market dynamics  each source market has its 
own distribution strategy which aims to reduce 
costs by building controlled distribution through 
the efficient operation of retail shops the use of 
the internet as a research and booking tool and by 
the utilisation of call centres
in the mainstream businesses our leading brands 
drive bookings through controlled distribution 
capability which is made up of three main channels 
a retail network of circa 3500 shops an online 
booking capability for all major brands and call 
centres  in the uk and nordics for instance where 
there is a high propensity to purchase online we 
have invested heavily in web capability  in the 
nordics we have ceased production of traditional 
brochures from summer 2011 and are promoting 
online as the main distribution channel  in the  
uk the trend towards online booking continues 
supported by improvements to the functionality  
of the thomson and first choice websites and  
the success of the ‘mythomson’ portal allowing 
customers to manage bookings online  in france 
there is a higher propensity to purchase through 
more traditional travel agents and we are 
expanding our retail network both through owned 
and franchise agencies  we have also increased 
controlled distribution for the nouvelles frontières 
and marmara brands by building their internet 
offering and selling our marmara brand through 
our network of nouvelles frontières shops and 
havas voyages retail stores  
in the specialist businesses we are focusing on 
increasing the share of direct distribution to reduce 
distribution costs and to increase direct access to 
customers  our adventure division is making wider 
use of our existing retail network and is cross
selling product between brands  new websites 
have been developed for a number of brands 
including the moorings quark expeditions and tui 
ski to further improve the customer experience 
and to increase the level of controlled distribution  
the laterooms brand has a strong leadership 
position in the uk ota accommodation market 
room night growth of 31 yearonyear and we 
are starting to roll out our successful laterooms 
model to continental europe and australia  
imperative 2 distribution  brands wwwtuitravelplccom
16 tui travel plc annual report  accounts 2010
summary
• our colleagues are key to our success
• development of sophisticated capacity 
and yield management systems
• underlying operating profit margin up 40  
basis points from 29 2009 restated 
to 33
• integration progressing well with a total 
synergies target of £200m
the skills and expertise of our colleagues are  
the key to our success  across the group we  
have a unique breadth and depth of experience 
with innovative entrepreneurs in our specialist 
businesses skilled tour operators in mainstream 
functional experts at the centre and a highly 
experienced and respected international 
management team  our aim is to motivate and 
engage our teams to deliver outstanding customer 
experiences and results for our businesses  talent 
across the group is reviewed regularly with a focus 
on retaining and developing individuals to drive the 
business forward see page 24
our tour operators actively manage capacity 
through sophisticated capacity and yield 
management systems  the uk mainstream 
business has a marketleading yield system to  
plan and manage capacity allowing us to analyse 
profitability for thomson and first choice by 
creating a detailed picture of profitable capacity  
by individual flight  this allows us to determine 
optimum seat capacity by each uk airport and  
to ensure that we maintain the most appropriate 
aircraft fleet size and type  this has enabled us  
to leverage the strength of both these brands  
by improving efficiency with fewer aircraft and  
less risk  our other businesses are also beginning 
to implement this system in the activity sector 
the ski business has fully implemented the same 
yield management tool driving further 
improvements in margin  
we have made excellent progress in delivering  
cost synergies with £195m achieved to date and 
maintaining our target of £200m by 2011  in 
addition to the delivery of these cost synergies the 
businesses are continually working to leverage their 
marketleading positions and scale to maximise 
their cost competitiveness and rationalise the cost 
base further through the continual improvement  
of business processes and systems  we are also 
further reviewing options to reduce the number  
of reservation and back office systems in the 
mainstream businesses  
strategic overview  our strategy
strategic imperatives continued
imperative 3 people  operational effectiveness group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 17
summary
• acquired six niche highgrowth 
businesses in specialist sectors
• creating a leading position in russia  
and cis
• underlying operating profit up 11  
to £447m
• increase in return on invested capital  
to 99
we have identified a number of market segments 
where we can allocate capital to drive growth  
these target market segments primarily within our 
specialist sectors are highgrowth and highmargin 
and present excellent opportunities for us to create 
leading positions in fragmented markets  these 
segments offer significant potential for further 
growth and we are creating marketleading  
positions by a combination of the acquisition of 
complementary businesses and organic growth in 
our existing businesses  we have completed eight 
acquisitions this year six in the specialist sectors 
and will continue to make bolton acquisitions in 
targeted specialist businesses  
further organic longterm growth will be achieved 
through the continued introduction of some of our 
specialist brands into new markets utilising our 
distribution strength including our paneuropean 
retail estate of circa 3500 branches  for example 
we have launched the best of our marine adventure 
and polar cruising products into germany russia 
and ukraine  following the successful launch of le 
boat within our german retail operation we have 
positioned this customer offering in the dutch and 
belgian markets  
as the leading international leisure travel group we 
are well placed to benefit from the strong increase in 
demand for leisure travel in emerging markets to 
generate longterm growth for the group  our 
strategy within russia and cis has been the main 
area of focus and our growth plans are progressing 
well  we entered the russia and ukraine markets 
through the establishment of a joint venture with 
sgroup capital management and have 
subsequently completed three acquisitions  the 
acquisitions of vko group and mostravel in russia 
and voyage kiev in ukraine have provided us with a 
strong entry point into this market  tui travel is the 
first international tour operator to build a presence 
in russia and cis and we successfully launched the 
tui brand into the market in march 2010  we have 
an existing presence in brazil china and india 
through our inbound and destination management 
companies in the ad sector and continue to build 
our understanding of these leisure travel markets  
we are currently evaluating our optimal participation 
strategy for each market and discussing future 
collaboration opportunities with potential partners  
it is our intention to further expand in these markets 
to create longterm sustainable growth for tui 
travel on a global scale  
we continue to believe that the boeing 787 
dreamliner represents a fantastic opportunity to 
deliver longterm growth for the group  not only 
will it be able to fly greater distances enabling us  
to offer a wider range of nonstop destinations to 
our customers than equivalent aircraft today but it 
will do so with greater fuel efficiency and additional 
comfort  as one of the first airlines to take delivery 
of these aircraft we plan to use the customer and 
operational benefits to position the longhaul 
offering as a key differentiator in europe allowing us 
to develop a preeminent position in the longhaul 
charter market  
we have an assetright business model and typically 
only invest in assets such as yachts inland waterway 
cruisers and expedition cruise ships that provide us 
with greater competitive advantage and enable us  
to earn premium margins  as a result of our asset
right business model delivery against our strategic 
imperatives driving underlying margin enhancement 
and delivery of synergy benefits of £200m we 
remain confident of delivering our mediumterm 
margin targets  despite tough economic conditions 
and industry turmoil we have made significant 
progress in realising these key objectives improving 
operating margins by 40 basis points to 33 2009 
restated 29 and return on invested capital to 
99 2009 restated 86
 
imperative 4 growth  capital allocation wwwtuitravelplccom
18 tui travel plc annual report  accounts 2010
strategic overview
key performance indicators kpis
our main strategic objective is to improve the 
group’s profitability and to deliver enhanced 
returns on investment  we believe that improving 
our financial performance will allow us to invest in 
the future of our business for the benefit of 
shareholders colleagues and customers  
to measure our financial progress we have two 
financial kpis i operating margin  and ii the 
return on invested capital roic  
in the year margins improved by 40 basis points 
over the restated 2009 margin of 29 primarily 
driven by the delivery of merger synergies and 
turnaround progress partially offset by a weaker 
trading performance in the uk source market
increasing the proportion of our products that  
are different to those offered by our competitors  
is our most important strategic imperative  
differentiated products have earlier booking 
curves higher customer satisfaction and retention 
and superior margins  these products are difficult 
for competitors to replicate and we have a 
significant competitive advantage due to our 
existing brand loyalty and experience of designing 
and operating new concepts
in the year we increased the differentiated product 
mix by one percentage point across the total 
mainstream sector although certain source 
markets made greater improvements such as the 
nordics up six percentage points and the uk  
up three percentage points  the overall increase 
was affected by a small reduction in france where 
we are remixing away from some of our older 
differentiated products eg club paladien to 
newer products eg nouvelles frontières hotel 
clubs and also growth in commodity product in 
belgium where we increased our market share
increasing our direct distribution mix with a focus 
on online sales is a key driver of reducing our 
distribution costs and enhancing our customer 
relationships  direct distribution typically 
represents the most efficient distribution method 
and allows us to provide even better value to 
customers  importantly selling directly to our 
customers means that we can further manage 
their endtoend holiday experience and improve 
brand and product loyalty
we have increased our controlled distribution mix 
in the year in all source markets with the most 
significant increases in france and germany   
in france the key driver of the increase has  
been the introduction of our marmara products  
in our nouvelles frontières and havas voyages  
retail stores  
the specialist sectors add significant value to the 
group as they enjoy higher margins and growth 
characteristics and are virtually impossible to 
replicate as we have crucial first mover advantage  
having a relevant position in nonmainstream 
markets is strategically important and is a key 
differentiator and growth driver for the group   
for these reasons the generation of a substantial 
proportion of the group’s operating profits from 
specialist sectors is an important objective  
the proportion of operating profit contribution 
from the specialist sectors has decreased in the 
year as the mainstream sector profitability 
benefited from synergy delivery and turnaround 
progress whereas operating profit in the specialist 
 emerging markets sector was lower due to start 
up investment in russia and reduced capacity in 
our private jet tours businesses
we are experiencing greater consumer awareness  
of sustainability and believe that creating more 
sustainable holidays will help protect our product 
into the future and also support product 
differentiation brand loyalty and competitive 
advantage  
tui travel airlines’ performance measured in terms 
of carbon dioxide emissions per revenue passenger 
kilometre co
2
rpk makes our fleet one of the 
most efficient in europe and beyond
financial
product  content
distribution  brands
specialist sectors
responsible 
leadership
strategic imperative performance group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 19
in january 2008 we set out a roadmap to 
increase tui travel’s operating margins from 
20 to 47 and set out a target of doubling the 
group’s roic to a level in excess of the group’s 
cost of capital  
we are targeting a differentiated product mix  
of over 50 in our mainstream sector
we are targeting a controlled distribution mix of 
greater than twothirds in our mainstream sector  
we expect the mix of profits from the specialist 
sectors to increase in the medium term due to 
their superior underlying growth characteristics
the group has committed to reducing its airlines‘ 
direct carbon emissions by 6 by 201314 against 
a baseline of 200708 in terms of total carbon 
emissions as well as relative carbon emissions 
based on 200809 operational structure and plans 
see sustainable development on page 28
target key performance indicators
operating margin 
2010 2009 
33 29
1
 
 
roic
2010 2009 
99 86
1
 
aircraft carbon efficiency measured through tui travel airlines’ fleet average co
2
rpk
2010 2009 2008
761g 781g 779g
co
2
rpk co
2
rpk co
2
rpk
differentiatedexclusive product mix as a proportion of total mainstream sector holidays
2010 2009 2008
38 37 33
controlled distribution mix as a proportion of total mainstream sector holidays
2010 2009 2008
62 59 53
the proportion of group operating profit generated by our specialist sectors
2
2010 2009 
32 37
1
 
1
 fy09 shown after the restatement
2
 before central costs wwwtuitravelplccom
20 tui travel plc annual report  accounts 2010
managing unprecedented 
disruption
the volcanic ash cloud caused 
unprecedented disruption in april 
2010 with circa 400000 of our 
customers affected throughout 
europe  during the crisis we 
prioritised the needs of our 
customers providing industry
leading levels of support and made 
enormous efforts to repatriate 
stranded customers by all methods 
at our disposal  we firmly believe 
that our efforts further highlighted 
the advantages of travelling with a 
leading tour operator and that these 
benefits have resonated strongly 
with customers throughout our 
source markets  the new approach 
to the imposition of airspace 
restrictions now based on scientific 
observations and consultations with 
engine manufacturers should mean 
that any future airspace closures 
are more tightly targeted and cause 
substantially less disruption
the group risk management committee grmc 
a subset of the gmb is responsible for setting  
the ‘tone at the top’ and supports the continuous 
improvement that is needed for risk management 
to function effectively through ensuring 
management of risk is at the heart of our dayto
day operations and considered during the business 
planning and strategy setting processes  the 
grmc is also responsible for identification of risks 
associated to the delivery our strategic imperatives 
from a board perspective and ensuring that these 
‘topdown’ risks are owned and appropriately 
mitigated across the group or managed at board 
level where required
recognising that implementing and embedding 
erm is a journey two years in efforts are now 
focused on further enhancing risk management 
capabilities across the group  plans are in place  
to deliver improvements to existing processes by 
introducing new methods which will be supported 
by the implementation of a more sophisticated risk 
management solution  another key development 
will be the formalisation of the group risk appetite 
which is seen as critical to managing risks to within 
the right levels and in enhancing overall business 
performance 
finally in preparation for the bribery act which 
comes into force in april 2011 we are currently 
developing a more comprehensive compliance 
framework which will be applied across the  
whole group
a summary of the principal risks faced by the 
group along with the associated mitigation 
strategies are contained in the following table  
however this is not intended to be a complete  
list of all possible risks that could occur  the 
group’s key financial risks are included in  
note 25 of the accounts see page 117
risk management
effective and appropriate enterprisewide risk 
management remains key to the delivery of our 
business objectives and strategic goals  our 
established framework is designed to facilitate  
the early identification and evaluation of risks to 
ensure challenges are prioritised and managed 
accordingly  clearly we have experienced some 
failures in internal control and procedures this  
year see page 50  whilst we have taken short
term actions to address the specific weaknesses  
we are reviewing the effectiveness of the risk 
management framework
the framework strives to improve operational 
performance reduce losses and protect and 
enhance shareholder value in the pursuit of the 
groups’ strategic imperatives  it can only seek  
to provide reasonable comfort that potential 
significant exposures to the group are identified 
and appropriate mitigation plans developed and 
implemented  risks by nature are uncertainties  
or unforeseen events as evidenced this year by  
the volcanic ash cloud  
responsibility for managing risk should clearly 
reside within the businesses themselves  all  
key areas of the business adopt the group’s 
uniform enterprisewide risk management erm 
approach which is closely linked to the strategic 
planning process  it is the responsibility of senior 
management teams and sector boards across  
the group to review challenge and agree the risk 
profile for their area of responsibility and to ensure 
resource is allocated effectively to manage risk and 
maximise opportunities  group risk management 
consolidates all risks identified by the businesses to 
create the group ‘bottomup’ risk profile which is 
presented to the audit committee on a halfyear 
basis  in addition to group risk management the 
audit committee is also responsible for monitoring 
and challenging the group’s risk response 
strategies  for further information see page 50
strategic overview
principal risks group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 21
specific risk mitigation
global financial factors 
context – external environment
crossborder element of trading exposes the business to fluctuations in exchange rates and complex 
and technical tax laws  a significant proportion of operating expenses are in relation to aircraft fuel 
which is also unstable 
risk
volatility of exchange rates and fuel prices may have a negative impact on unhedged balances  
rising input costs could increase cost of product offering and leave the group competitively 
disadvantaged increase in tax authorities taking more frequent and intrusive tax audits of the  
group’s business operations
possible impact
reduced demand due to increased costs lower shortterm growth rates reduced margins impact on 
cash flow lengthy tax litigation processes possible reduction in group’s aftertax earnings
strategic focus
• high customer retention to deliver repeat booking rates and earlier booking trends
• highly trusted brands providing value and quality and broadening customer choice
• our colleagues are key to our success
• hedging policies in place across all source markets 
controlled and monitored by group treasury with hedging 
cover taken out ahead of customer booking profile
• continuous monitoring of foreign exchange and fuel 
markets to ensure most uptodate market intelligence  
on commodity movements and products
• source markets abreast of regulatory environment and 
known competitor behaviour
• strong focus on fixed cost reduction and transition of fixed 
to variable costs where possible
• ensuring compliance with all relevant tax laws and practice
• ensuring highquality advice is sought to structure the 
group’s operations appropriately
• ensuring uncertainty is minimised and recording provisions 
to reflect potential tax exposures
• development and maintenance of highquality 
relationships with tax authorities and educating them  
on the group’s business operations
political volatility natural catastrophes outbreaks
context – external environment
providers of holiday and travel services are exposed to the inherent risk of domestic andor 
international incidents affecting some of the countriesdestinations within its operations
risk
large scale events causing operational disruption future reduction in destination desirability 
inability to operate efficiently
possible impact
significant consequential losses holiday cancellations and decline in consumer demand possible 
increase in insurance premiums
strategic focus
• high customer retention to deliver repeat booking rates and earlier booking trends
• building customer relationships
• our colleagues are key to our success
• balance of destination mix to minimise concentration and 
flexible supplier agreements in place to allow for capacity  
to be switched if required
• established incident management policy and experienced 
leadership teams to support and repatriate stranded 
customers to minimise effects of negative events
• increased awareness of the additional benefits of travelling 
with a recognised and leading tour operator strongly 
increasing consumer confidence throughout source markets 
• strong relationships with local tourism bodies and travel 
industry associations with government guidance obtained 
and used as required
• ongoing liaison with aviation industry stakeholders and 
meteorology service providers to improve the accuracy of 
ash concentration modelling and understanding of aircraft 
tolerance to ash
regulatory environment
context – external environment 
industries in which the group operates are heavily regulated particularly in relation to aviation 
taxation and environmental and consumer protection 
risk 
noncompliance to applicable regulations negative perception of product offering due to increased 
costs andor increase in awareness of environmental issues  failure in safety due diligence processes
possible impact 
limitations on operational flexibility possible exposure to legal or regulatory sanctions harm or injury 
to customers associated reputational damage and increased costs
strategic focus
• highly trusted brands providing value and quality and broadening customer choice
• building customer relationships 
• our colleagues are key to our success
• experienced public affairs team that works with 
governments and regulators to address issues affecting  
the industry and its customers
• striving to reduce the environmental impact at each stage 
of the customer’s journey through creation of more 
sustainable holidays 
• carbon management strategy in place with a commitment 
to reduce co
2
 emissions by 6 by 201314 against a 
baseline of 200708 and significant investment in boeing 
787 aircraft with greater fuel efficiency
• our airlines are preparing for the eu emissions trading 
scheme and reporting requirements applicable from 
january 2012 and working with pwc on a readiness review
• customer and employee safety is paramount  industry 
leading expertise employed at the centre to set policy 
tailored by source market to provide guidance monitor 
compliance and remain up to date with changes in regulations wwwtuitravelplccom
22 tui travel plc annual report  accounts 2010
strategic overview
specific risk mitigation
economic conditions 
context – external environment
spending on travel and tourism is discretionary and price sensitive  the economic outlook remains 
uncertain with different markets at different points in the recovery cycle  consumers are also waiting 
later to book their trips in order to assess their financial situation
risk
sustained decline in consumers‘ propensity to travel continuation of later booking patterns inability 
to respond to shortterm changes in consumer demand
possible impact 
lower shortterm growth rates and reduced margins
strategic focus
• different products to our competitors and unique in the marketplace
• high customer retention to deliver repeat booking rates and earlier booking trends
• highly trusted brands providing value and quality broadening customer choice
• increasing controlled distribution
• development of sophisticated capacity and yield management systems
• developing a portfolio of products that no competitor can 
easily match or replicate
• differentiated content increases competitive advantage 
drives higher margins and has an earlier booking profile
• reducing costs by building controlled distribution and 
maximising efficiency through various booking channels 
• actively managing capacity through use of sophisticated 
capacity and yield management systems to improve 
efficiency and drive margin improvements
consumer preferences
context – strategic and emerging
consumers are increasingly turning online to research and book holidays  social media and price  
play a key part in the decisionmaking process  in some cases consumers are moving towards more 
componentbased packages including use of lowcost carriers as opposed to integrated tour packages 
risk 
inability to anticipate changes in consumer preferences impact on efficiency of seasonal planning 
challenges in delivering a competitive cost base
possible impact
market positions come under pressure lower short to mediumterm growth rates reduced margins
strategic focus
• high customer retention repeat booking rates and earlier booking trends
• growth in online accommodation market
• highly trusted brands providing value and quality and broadening customer choice
• building customer relationships
• increasing controlled distribution
• development of sophisticated capacity and yield management systems
• developing a portfolio of products that no competitor  
can easily match or replicate and delivery of exceptional 
customer service
• maximising efficiency and enhancing internet as a  
research and booking tool
• development of inhouse social media channel  
wwwcheqqercom 
• building on success of ota accommodation business  
by investing in increasing the product offering
• promoting online as the main distribution channel  
and improving website functionality
• actively managing capacity through use of sophisticated 
capacity and yield management systems to improve 
efficiency and drive margin improvements
t echnology systems
context – internal operations
the group is heavily reliant on it systems to provide holiday and travel services  such activities 
include yield management provision of central administration the web and reservations  the group 
is also vulnerable to rapid changes in technology standards
risk 
sustained failure in systems causing operational disruption weaknesses or inefficiencies in it and 
financial control processes inability to keep up with latest it developments
possible impact 
significant impact on operations reduced revenue and increased costs unforeseen losses higher 
levels of expenditure in order to keep up with competitors
strategic focus
• growth in online accommodation market
• increased controlled distribution
• development of sophisticated capacity and yield management systems
• business continuity policy defined  project now focused  
on raising awareness and capability across the group to 
improve continuity provisions and reduce exposure and 
associated insurance premiums
• continually working to leverage scale to maximise cost 
competitiveness through continuous improvement in 
business systems and processes
• reviewing options to reduce number of reservation  
and back office systems
• heavily invested in web capability in source markets  
where there is a high propensity to purchase online
• defined strategy to ensure maximisation of new 
technologies in order to compete with key industry players group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 23
specific risk mitigation
niche businesses and emerging markets
context – strategic and emerging
the group continues to look into new markets as the traditional mainstream markets mature   
niche businesses and the bric countries represent a significant opportunity to participate in  
longerterm travel growth trends and have higher growth potential
risk 
inability to identify appropriate opportunities failure of acquisitions to deliver expectations limited 
experience in new markets possible difficulty in integrating operations and systems
possible impact 
potential lower longterm growth and reduced margins impact on anticipated cash flows significant 
diversion of management time
strategic focus
• our colleagues are key to our success
• acquire niche highgrowth businesses in specialist sectors
• create a leading position in russia and cis
• increase return on invested capital
• identified a number of market segments to allocate capital 
to drive highgrowth and highmargin product offering
• completed six successful acquisitions in 200910 and will 
continue to make bolton acquisitions during 201011
• appointed highly skilled tour operator to manage russia 
and ukraine businesses with integration and growth plans 
progressing well
• investments in russia and cis by way of a joint venture 
with a local partner
• currently investigating optimal participation strategy for 
brazil china and india and discussing future collaboration 
opportunities with potential partners
• consideration payable for businesses directly linked to 
postacquisition performance
supply chain
context – external environment
the group is dependent on the provision of services by third parties such as hotel operators airline 
services and manufacturers and other thirdparty providers
risk 
overreliance and possible failure of key suppliers withdrawal of certain products or services  
poor commercial terms lack of efficiency and quality of contract performance exposure to 
counterparty risk
possible impact 
reduction in operational performance inability to offer reliable products and services deterioration  
in consumer confidence consequential losses
strategic focus
• highly trusted brands providing value and quality and broadening customer choice
• building our customer relationships 
• our colleagues are key to our success
• spread of financial commitments across key value chain 
suppliers
• wellestablished relationships with key suppliers with 
service levels monitored and managed accordingly
• centralised purchasing functions for key procurement areas
• regular review of key service providers to assess financial 
standing and levels of health and safety quality and 
sustainability standards
• process in place to monitor and minimise levels of  
prepayments to hoteliers and other thirdparty  
service providers wwwtuitravelplccom
24 tui travel plc annual report  accounts 2010
our colleagues
as the world’s leading international travel group  
we have a workforce of approximately 49000 
colleagues  at tui travel there is a clear link 
between the group’s overall strategy and the role 
that our people play  we recognise that by building 
the most capable and engaged teams we can 
deliver optimum business performance
strength in diversity
an important strength of tui travel is our  
diversity  we operate in approximately 180 
countries worldwide and as a result have a  
highly diverse workforce
the composition of our top 250 senior leadership 
team highlights some demographical aspects of  
our group  over a quarter of our senior leadership 
team is female and the team is based in 24 
different countries around the world  out of  
our group’s total workforce 41 of our managers 
are female
we uphold diversity as a core tenet of our success  
we do not tolerate discrimination on any grounds 
and our ethos is that opportunities should be 
available to everyone  we have principles and 
guidelines in place both groupwide and more 
locally to actively support this
engaging our colleagues
we believe employees who are engaged with  
our business will deliver the best performance   
it’s important that we engage our people in  
the strategy and goals of tui travel so they 
understand how they contribute to our success  
group management board
the strategic direction of the group is set by the 
group management board gmb in conjunction 
with the board see page 42  the gmb consists  
of tour operating and function experts drawn  
from across the group  this highly experienced 
international team manages and executes tui 
travel’s daytoday operations and is responsible 
for the overall performance of the group  
during the year and postyear end there have 
been changes  richard prosser left the gmb in 
july 2010 following the decision to restructure  
the specialist  emerging markets sector  on  
1 october 2010 john wimbleton was appointed 
managing director for the newly combined 
specialist  activity sector
dermot blastland managing director uk  ireland 
retired with effect from 1 october 2010  johan 
lundgren managing director northern region 
also took responsibility as managing director uk  
ireland from that date  
jacky simmonds was appointed group hr  
director from 1 october 2010 replacing  
bill logan  bill logan will remain with the group  
in an advisory role to both peter long and the  
gmb throughout 2011  
paul bowtell chief financial officer resigned on  
21 october 2010 and will step down from the gmb 
and the board with effect from 31 december 2010  
william waggott’s appointment as chief financial 
officer of tui travel plc was announced on  
30 november 2010
strategic overview
people
our team
1 peter long
chief executive
2 paul bowtell
chief financial officer
3 dr volker böttcher
managing director central europe
4 bart brackx
managing director western europe
5 andrew john
group legal director 
and company secretary
6 jacky simmonds
group human resources director
7 johan lundgren
managing director northern region
8 joan vilà
managing director 
accommodation  destinations
9 william waggott
commercial director
10 john wimbleton
managing director specialist  activity 
  
1 2 3 4 5 group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 25
involving our colleagues
in the past year a significant number of colleagues 
in the group have taken part in one of our 
employee surveys  our colleagues’ opinions have 
given us an insight into what we are doing well and 
highlighted areas of focus so that we can continue 
to improve  it is not just about listening it is about 
acting too which is why there is ongoing activity 
within our businesses to address the findings and 
involve our people when making improvements
in the latter part of 2009 we conducted the second 
leadership voice survey which comprised 827 
respondents from our leadership population 
leaders  we wanted to track progress since 2008 
and set a new benchmark for an extended manager 
population  the overall results confirmed that we 
have some great strengths that are common across 
the group
some of the results highlights included
• 95 of our leaders feel personally motivated 
to help tui travel be successful
• 94 of our leaders feel well informed about 
the performance of our business
• 93 of our leaders are proud to work for  
tui travel
• 93 of our leaders feel their business looks  
for new opportunities to deliver profit
the results were particularly strong in the  
category focusing on profitability commercial 
advantage and how we add value to customer 
experience highlighting our commitment in this 
field and the success of our responsive and flexible 
measuring and monitoring this is a key way to 
identify how we can improve high performance  
this is why we measure engagement levels and 
benchmark ourselves against organisations in the 
uk and globally as we want to understand how  
we perform against national global and high
performance norms  
as an organisation operating in a large number  
of countries with a large workforce and multiple 
brands it is key that we can engage our colleagues 
so they deliver a great customer experience no 
matter where in the world they work
at tui travel it is not just about what we do it  
is about how we do it  in 2008 we developed the 
tui spirit with a number of colleagues across the 
group to build our culture  these values underpin 
our strategy give our people a common purpose 
and help us to achieve our vision of making travel 
experiences special
our values are
• customer obsessed
• responsible leadership
• value driven
• playing to win
the values are supported by ‘winning behaviours’ 
that clearly illustrate what it looks like when we live 
our values at tui travel  we continuously look  
to ensure that what we do is aligned to our vision  
and values both on a global and more local level 
particularly by working with managers throughout 
our organisation
6 7 8 9 10
launching our values in 
russia and cis 
in spring 2010 when launching tui 
travel in russia and ukraine it was 
pivotal that our values became part 
of everyday life as early as possible
we ensured that leaders of our 
businesses could relate to our values 
and we tailored them to suit the 
russian and ukrainian local cultures  
the values were also aligned to 
the brand values and adapted to 
reliable inspiring and responsible  
these values incorporate our group
wide aspirations and are aligned with 
what we are delivering for customers 
in these new markets  the launch 
of the values included a series of 
facetoface presentations inclusion 
in dayone activities and launch 
communication literature delivered 
in local languages
training for key customerfacing 
teams in the local retail networks 
and destinations was based around 
the values  the values are now an 
important part of everyday life in 
our businesses in russia and ukraine 
– helping us to make our customers 
and our teams smile as tui travel 
develops in this region wwwtuitravelplccom
26 tui travel plc annual report  accounts 2010
strategic overview
people continued
are also a vast number of tailored initiatives in our 
sectors and businesses to build our colleagues’ skills
we have continued our commitment to attract 
talent and find our leaders of tomorrow  we  
have a range of national graduate schemes in  
place in our sectors and businesses and we also 
offer a groupwide international management 
trainee programme
the objective is to attract and develop highquality 
people to be future commercial leaders in our 
business  the programme stretches over 18 months 
and includes five work assignments in different 
businesses and countries to ensure a full overview  
of the group  in the past year we had an intake of 
11 international management trainees all highcalibre 
candidates with solid academic results and excellent 
language skills
driving high performance
one of the main responsibilities of our leaders and 
managers is to drive performance and develop 
coach and motivate their people to achieve success  
it’s essential that our colleagues are provided with 
regular feedback on their performance  our people 
need to understand what needs to be achieved  
and how that links to the overall strategy as an 
organisation
in line with the tui spirit we don’t just have 
performance reviews to evaluate what our people 
do – how they achieve is equally important  it is 
our objective to reward and encourage absolute 
commitment to providing our customers with 
quality service as well as encouraging a team
oriented environment where our people are  
free to innovate and collaborate
business model  it is also clear that our significant 
efforts to develop our leaders are both valued and 
of high impact
in addition to surveys we have a range of  
proactive employee forums in place to ensure we 
have an ongoing dialogue and involve colleagues 
with matters that are important to them both 
through elected employee representatives and 
directly with teams in meetings
attracting and developing talent
as a large international organisation we can offer 
exciting career prospects for many of those who join 
us  however we don’t just want to attract talent we 
want to ensure that we develop our people too so 
that we can build our capability internally
at tui travel we put significant effort into ensuring 
that we develop our talent pipeline for the future 
and talent is reviewed at board level regularly   
we have groupwide leadership development 
programmes designed for senior leaders  
providing a great opportunity to enhance skills  
and to network with colleagues from across  
our businesses
this includes our very successful tui horizons 
programme aimed at highpotential middle 
managers in the talent pool who have been 
identified as our future leaders  the aim of the 
programme which is delivered by internal as well  
as external experts is to develop numerate 
analytical leaders who engage with their people  
to drive high performance in their businesses   
we have extended this initiative to cover a horizons 
master class aimed at horizons alumni  the format 
is short targeted workshops designed according to 
business and personal development needs  there 
people and
operational effectiveness
building the most capable
and engaged teams to
deliver optimum
business performance
engage our
colleagues
build leadership
capability
effective
organisation
design
effective and efficient hr operations
imperative
aim
priorities
underpin
hr strategy
blue voice success 
when tui nordic asked their 
colleagues in sweden norway 
denmark and finland to complete 
their annual employee survey blue 
voice their aim was to ensure they 
were on the right track to success  
in the eyes of their people
the results were very positive   
not only was there a high response 
rate but results had significantly 
improved in the majority of 
categories from the previous year  
progress had also been made on 
kpis linked to key strategic areas 
of leadership engagement and 
effectiveness  the results showed a 
strong link between having attended 
the values training and living the  
new values
in tui nordic blue voice is more 
than just a way to find out what 
colleagues are thinking at a certain 
point in time it provides a strategic 
tool for managers which is linked to 
both organisational and personal 
longterm goals  it helps managers 
focus on the right things make 
improvements and act all key 
aspects of being an organisation  
that drives high performance and 
rewards ‘winning behaviours’ group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 27
from management trainee  
to business development 
with a masters in international 
tourism management excellent 
language skills and a real passion  
for the leisure travel industry  
olga kaidala was well placed to  
join the tui travel plc international 
management trainee programme  
in april 2009  
thanks to the diverse nature  
of our business olga had the 
opportunity to gain broad 
commercial experience during her 
traineeship  first she worked on 
kpi reporting and hotels and resorts 
projects in the uk  during her 
placement in germany she looked  
at website usability optimisation  
for carhiremarketcom and got  
involved with the brand new  
cheqqer project  her next 
assignment took her to poland 
where she worked on ‘managing 
for value’ implementation and the 
sales reporting tool before joining 
the accommodations  destinations 
sector for her last placement 
focusing on strategic projects
having gained a comprehensive 
overview of our businesses’ 
commercial opportunities and 
challenges olga joined the business 
development department of our 
accommodation  destinations 
sector in a permanent role as a 
business development executive 
based in majorca spain  in her 
role she contributes to shaping a 
competitive strategy for mergers  
and acquisitions for the sector 
uk employee incident data october 2009 – september 2010
  airline  crawley 
incident category airline equivalent uk  ireland businesses t otal
number of incidents 464  49 22 535
number of riddor over 3day incidents  14 26 4 0 44
number of riddor major incidents 4 3 2 0 9
number of riddor fatalities 0 0 0 0 0
where an incident occurs outside of the uk it is not reportable under the riddor legislation but the business reports them as a  
‘riddor equivalent’
reporting of injuries diseases and dangerous 
occurrences regulations  below are the incidents 
statistics for 200910
local and national authorities continue to visit 
various premises owned by the group offering 
advice and alerting us to issues  no enforcement 
notices or convictions have occurred within the 
200910 financial year
customer safety
during 2010 the group health  safety function 
was further developed and deployed  a uk team 
of 20 staff managing an overseas team of 65 
continued to provide support to all sectors  
with extensive checks and audits carried out on 
accommodation transport and activity suppliers  
there was also an increased focus on identifying 
and managing sickness and illness outbreaks in our 
overseas destinations with additional training and 
external intervention through the use of ‘preverisk’ 
– a thirdparty hygiene consultancy  
group health  safety continues to facilitate  
the everincreasing level of cooperation and 
coordination on health  safety issues facing our 
highvolume packaged product businesses in the 
mainstream source markets
the specialist  emerging markets and activity 
sectors continue to receive guidance support 
tools and resources to ensure appropriate bespoke 
safety management systems are implemented at 
business unit level within each sector  this year a 
number of the safety management systems have 
reached maturity – evidenced by audits carried out 
by group health  safety across all sectors
group health  safety has coordinated and 
managed with the ad sector the growth and 
development of the ‘sure2care’ online due 
diligence system  ad continues to be a major 
user of this system with over 25000 of its suppliers 
being captured  in total the system is in use by 
some 45 brands across the group with all  
sectors represented  
the health and safety of our employees and 
customers is of great importance to tui travel   
the group health  safety department sets a clear 
direction for the group to follow founded on the  
tui travel health  safety policy statement signed 
by peter long  the department actively directs  
and supports all sectors in the design and 
implementation of comprehensive safety 
management systems
employee safety 
the risks faced by employees across the  
business vary enormously from a lowrisk office 
environment to the highrisk airline engineering 
environment and everything in between  the 
majority of incidents that occur still remain in the 
slip trip fall and manual handling categories which 
although not necessarily major can lead to long
term injury
workplace risk assessments continue to be 
conducted highlighting areas where additional 
control measures need to be implemented   
where significant risk exists risk assessments are 
used as the means of understanding the various 
hazards involved and identifying and implementing 
appropriate control measures whether this be 
additional training personal protective equipment 
or a change in the work process  
individual businesses within the group continue  
to develop their own safety management systems 
receiving assistance and advice from the group 
health  safety function  for example in the  
uk employees continue to undertake the baseline 
health and safety induction training ‘safety in  
your workplace’  this elearning programme 
provides a consistent level of training alerting 
employees to the different types of hazards  
they may find in their workplace  additional 
programmes are being developed including one  
for noise awareness which is specifically aimed  
at airline employees
within the uk the group continues to report  
any relevant injuries diseases or dangerous 
occurrences under the riddor regulations 
strategic overview
health and safety wwwtuitravelplccom
28 tui travel plc annual report  accounts 2010
sustainability is regarded as a serious business 
issue across tui travel with many brands making  
it an integral part of business processes supplier 
operating standards and performance metrics   
we have already experienced a range of business 
benefits including cost efficiencies quality 
improvements and the enhanced engagement  
of customers colleagues and suppliers  
in 200910 we were pleased that our performance 
was recognised as follows
• for the third consecutive year tui travel was 
featured in the carbon disclosure leadership 
index and was ranked 6th in the ftse 350  
for its approach to carbon disclosure  
wwwcdprojectnet
• tui travel continues to be listed on the 
ftse4good index in recognition of its 
transparency and for meeting strict social 
environmental and governance standards  
• tui travel was awarded the world’s 
responsible tourism award in 2009  
wwwworldtravelawardscom
for further details on awards and our latest 
sustainable development report see  
wwwtuitravelplccomsustainable development
sustainable development strategy
tui travel’s sustainable development strategy is 
based on consideration of the key issues affecting 
the company now and in the future  it is regularly 
reviewed in consultation with internal and external 
stakeholders  our four strategic priorities for 
sustainable development align with tui travel’s 
strategic imperatives  
we encourage all tui travel businesses to  
develop their own strategies aligning with  
group and sector priorities and the related  
targets where appropriate  
our sustainable development goal is to minimise 
our environmental impact respect the culture and 
people in our destinations and offer real economic 
benefit to local communities  
strategic overview
sustainable development
a sustainable future 
tui travel plc works with forum 
for the future a uk sustainable 
development ngo  we are a 
core partner in the tourism 2023 
project which sets out to help the 
uk outbound travel and tourism 
industry understand the challenges 
it faces and plans for a sustainable 
future
our four strategic priorities
for sustainable development are
carbon management
goal to reduce tui travel’s airlines’ direct 
carbon emissions by 6 by 201314 against 
a baseline of 200708 in terms of total 
carbon emissions as well as relative carbon 
emissions based on 200809 operational 
structure and plans
destinations
supplier management goal all suppliers in 
our destinations follow sustainability practices 
and have continuous improvement 
programmes in place
destination projects goal tui travel working 
with partners will make measurable improve
ments to local livelihoods and environmental 
protection in destinations
our colleagues
goal tui travel colleagues are engaged and 
empowered to take action on sustainability 
for the future success of the company 
our customers
goal tui travel businesses deliver quality 
communications designed to raise customer 
interest and demand for sustainable holidays  group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 29
our key achievements in 200910 include 
• our co
2
 per revenue passenger kilometre 
rpk across tui travel airlines in 200910 is 
761g an improvement of 26 since 200809 
– making us one of the most efficient airlines  
in europe and beyond
• in 200910 tui travel’s airlines carbon 
footprint was 5260500 tonnes saving more 
than 500000 tonnes of carbon dioxide  
• out of the 500000 tonnes of co
2
 saved 
26000 was due to tui travel airlines’ fuel 
conservation programmes
• we established a tui airlines biofuel  
working group
• 76 of tui travel airlines aircraft are now 
fitted with fuelsaving winglets
• our airlines are preparing for the eu emission 
trading scheme and reporting requirements 
applicable from january 2012 and are working 
with pwc on a readiness review
• tuifly nordic was awarded iso 14001 certified 
environmental management system and 
thomson airways and jetairfly are working 
towards iso 14001 certification in 201011
• our uk businesses have prepared a strategy  
to comply with the uk government’s carbon 
reduction commitment legislation – to date 
71 of tui uk’s retail estate has implemented 
automatic meter readers to improve dayto
day energy management  
we have developed collaborative partnerships  
with many stakeholders whose insight and 
guidance is helping us to develop our position  
on aviation and climate change  examples include 
forum for the future eu cleansky project uk 
sustainable aviation and sustainable aviation  
fuel users group
managing sustainable development
this year the group has maintained and  
enhanced its governance structure for  
sustainable development  johan lundgren 
managing director of the mainstream sector 
northern region is responsible for reporting  
on sustainable development to the group 
management and tui travel plc boards   
dermot blastland managing director of tui uk  
ireland was recognised at the ttg travel awards 
2010 and by the british travel  hospitality 
industry 2010 for outstanding contribution to 
sustainable tourism  the group management 
board acts as the steering committee and sets  
the strategic direction and longterm objectives  
for sustainable development  members of the 
board have been working with pwc to prioritise 
sustainable development risks and opportunities  
each strategic priority has a boardlevel sponsor 
and is underpinned by our commitment to 
integrate sustainable development into the  
way tui travel operates
the group sustainable development department’s 
role is to drive change towards a more sustainable 
company and to forge sector leadership  our 
groupwide workstreams meet regularly to tackle 
issues and develop programmes of work  each 
sector of our group has a sustainable development 
coordinator or team with a remit to develop and 
implement sustainable development strategy 
supported by a network of champions  
carbon management
travel and tourism are responsible for around 5 
of global co
2
 emissions unwto 2007  as a 
leading tour operator our challenge is to prepare 
for a lowcarbon society by further reducing our 
environmental impacts  we have committed to 
reduce tui travel’s airlines’ direct carbon emissions 
by 6 by 201314 against a baseline of 200708 in 
terms of total carbon emissions as well as relative 
carbon emissions based on 200809 operational 
structure and plans  see page 18 for our progress
tui travel has a carbon management strategy in 
place covering aviation water transport major 
premises ground transport and flagship hotel 
properties  we are monitoring and preparing  
for regulatory proposals on climate change that 
could have a fiscal impact  
in 200809 the carbon emissions from our  
airlines accounted for 896 of tui travel’s  
carbon footprint  we are making reductions in 
these emissions through the strategic venture with 
air berlin ongoing aircraft fleet replacement and 
fuel conservation measures  
eco vessel for european 
waterways 
inland waterways have circa 1000 
craft throughout the european 
inland waterways  we plan to 
introduce a new environmentally 
friendly hybrid eco vessel which 
operates with a combination of solar 
and diesel power  over the course of 
the next five years 500 craft will be 
introduced into the fleet  
in 200910 there has been a circa 1 
incremental reduction in absolute tui travel 
airline emissions against the previous year   
this achievement has excluded the significant 
emission reductions achieved by tuifly 
following the strategic venture with air berlin 
whereby air berlin took on the scheduled 
flying business of tuifly wwwtuitravelplccom
30 tui travel plc annual report  accounts 2010
strategic overview
sustainable development continued
• several businesses supported reforestation 
projects including tui central europe 
committed to planting 57600 wild olive and 
pine trees in a nature reserve in majorca and 
nouvelles frontières committed to planting 
15000 trees in madagascar  
• tui uk  ireland worked with the overseas 
development institute to better understand 
the socioeconomic impact of an allinclusive 
holiday village hotel in turkey – we are putting 
what we have learnt into operation
we are conscious of the pressures that tourism  
can place on local populations and resources and 
therefore work collaboratively with communities 
local and national governments ngos and trade 
associations to support sustainable management  
of destinations and to shape our strategy in this 
area  examples include dutch association of 
travel agents and tour operators deutscher 
reiseverband association of british travel agents 
the tour operators initiative forum for the 
future the overseas development institute  
born free and the travel foundation  
charitable giving
in the last year our businesses supported many 
source market and destination charities  our 
groupwide charity policy and guidelines help 
businesses to ensure transparency report annual 
monies collected and manage charity relationships 
see page 44  
our key achievements in 200910 include 
• ongoing support for the family holiday 
association fha which is the tui travel plc 
board’s nominated charity providing holidays 
to disadvantaged children and their families  
• thomson sport was one of the official partners 
for sports relief 2010 a charity that helps 
vulnerable people both in the uk and overseas  
• across the group businesses supported the 
haiti earthquake aid effort through colleague 
fundraising activities corporate donations 
cargo space and seats on tui travel aircraft 
and support for those colleagues who had lost 
family members  tui central europe has 
launched a fiveyear project to support the 
reconstruction of homes and a school in haiti
destinations 
we know that the leisure travel industry can have 
both positive and negative impacts on communities 
and the natural environment depending on how 
these impacts are managed  we are committed to 
learning more about how our holidays can benefit 
local livelihoods and protect the environment –  
and putting this into practice  this is fundamental 
to preserving the quality of our product in years  
to come
supplier management
tui travel has an extensive supply chain operating 
across the globe see page 44  these businesses 
are the gatekeepers to tui travel’s sustainability 
performance in our destinations  by focusing on 
sustainability our suppliers are able to achieve cost 
efficiency savings which ultimately give customers 
better value for money  our challenge is to extend 
the reach of our influence to all suppliers and to 
monitor their progress  
our key achievements in 200910 include 
• environmental and social contractual minimum 
standards for accommodation suppliers and 
the travelife sustainability system have been 
adopted by our mainstream tour operating 
businesses and some of the activity and 
specialist  emerging markets businesses – 
wwwits4travelcom
• over 400 hotels achieved travelife awards by 
the end of summer 2010
• 27 of tui uk  ireland’s customers stayed  
in travelifeawarded hotels and they launched 
new build and operational environmental 
guidelines for flagship hotel properties  
• the source markets in mainstream central 
europe organised a destination sustainability 
supplier conference in turkey  
• 8 tui nordic blue village flagship properties  
in europe and turkey were iso 14001 certified
• we have implemented a travelife animal 
attraction audit programme for major animal 
attraction excursion venues
destination projects
tui travel is involved in hundreds of projects 
designed to improve the livelihoods of local people 
in destinations and protect the environment  
our key achievements in 200910 include 
• tui travel’s mainstream businesses signed  
up to the child protection code committing 
the businesses to the six criteria of the code 
wwwthecodeorg and tui nederland began  
a threeyear child protection project in brazil  
british travel awards 
in 2010 thomson airways was 
awarded ‘environmentally and 
socially responsible airline’ for 
the fifth consecutive year and first 
choice won the ‘environmentally 
and socially responsible large tour 
operator’ for the fourth consecutive 
year  exodus won a silver award for 
the ‘environmentally and socially 
responsible small tour operator’ 
category   group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 31
our customers 
across the business we have been proactive in 
raising awareness of sustainability issues with our 
customers  to achieve many of our goals we need 
customers’ support both through the purchases 
they make and the personal actions they take  we 
are working to raise awareness influence choice 
change behaviour and develop and promote new 
products to encourage responsible holiday choices
our key achievements for 200910 include 
• tui travel businesses are communicating with 
customers on sustainable development issues 
and have launched many brochures dedicated 
to greener products  
• holidays forever was launched in 2010 a 
sustainable tourism campaign and microsite 
giving visitors information on thomson and 
first choice’s sustainable tourism activities  
for details see wwwholidaysforevercouk 
• many of our businesses offer customers the 
opportunity to carbon offset  tui travel in 
partnership with climatecare has invested  
in five exclusive renewable energy projects in 
destinations important to our business that 
are scheduled to deliver in excess of 400000 
tonnes of co
2
 reductions by the end of 2012  
tui travel businesses request feedback from 
customers regularly and some offer the opportunity 
to comment on the environmentally and socially 
responsible aspects of their holiday  in 200910  
we commissioned international consumer research 
into holidaymakers’ perceptions of sustainability to 
inform our work programme  the study involved 
almost 4000 online interviews in eight of our key 
source markets  the findings revealed that
• 70 believe holiday companies should be 
committed to preserving natural environments 
and 55 fair working conditions
• 46 would book a more sustainable holiday  
if they were more readily available
• 66 would change their behaviour on holiday  
if it helps the environment
for details of the research see  
httpwwwtuitravelplccomreportingcentre
our colleagues 
our aim is to make sustainable development 
tangible to each and every colleague within our 
business  we communicate regularly about the 
progress we have made on our journey towards 
securing a sustainable future for our industry and 
continue to build sustainability into our colleague 
inductions and training programmes including 
development programmes for managers  
we have a group code of conduct which covers  
a wide range of sustainability issues including 
human rights business ethics and transparency 
and commits tui travel to upholding the principles 
of the un global compact  
our key achievements for 200910 include
• we organised sustainability awarenessraising 
initiatives at head offices and overseas during 
which tui uk  ireland overseas colleagues 
celebrated world environment day through  
a variety of environmental themed children’s 
entertainment green competitions and beach 
cleanups and 2000 colleagues attended tui 
deutschland’s green day
• the activity sector relaunched its charity  
day scheme – giving every colleague a day  
to volunteer for a chosen charity  
• tui travel’s senior management were regular 
public advocates for more sustainable tourism 
in the media at industry and governmental 
events  for example peter long chief 
executive of tui travel took part in a ‘hot 
seat’ interview on world responsible tourism 
day at the world travel market 2009 in london
we have developed a number of core questions 
relating to responsible leadership and sustainable 
development that businesses and sectors include 
in colleague opinion surveys  our 200910 
leadership voice survey confirmed that
• 80 of leaders agreed that my business acts 
responsibly on environmental matters 73  
in 200809
• 83 of leaders agreed that my business acts 
responsibly in the local communities in which 
we operate 66 in 200809
we also gather feedback from colleagues on 
sustainability issues through focus groups  
education project for girls  
in brazil 
in 2010 tui nederland began a 
threeyear child protection project 
in north east brazil working in 
collaboration with plan nederland 
and ecpat nederland  the project 
aims to give vulnerable girls a good 
education and help finding a job in 
the tourism industry wwwtuitravelplccom
32 tui travel plc annual report  accounts 2010
business performance
group performance
group revenue was 2 lower than the prior year at 
£13525m 2009 restated £13851m driven by the 
impact of the strategic transactions in canada and 
germany scheduled flying which reduced revenue 
by 3  revenue from acquisitions increased 
revenue by 1 over the prior year whilst organic 
revenue was flat and the impact of foreign currency 
translation was neutral
the group achieved a £46m improvement in 
underlying operating profit to £447m in 2010 2009 
restated £401m  this improvement has primarily 
been achieved through the delivery of integration 
synergies the recovery of scheduled flying losses  
in germany and the strategic venture in canada 
partially offset by weaker trading  the trading 
performance was driven by increased winter 
losses especially in the uk source market following 
capacityled volume reductions  improved summer 
trading including strong performances in belgium 
and the nordic region was not enough to offset 
the increased winter losses
the main drivers of the yearonyear improvement 
in underlying operating profit are
  £m
2009 underlying operating profit  401
incremental synergies  75
turnaround of underperforming businesses 53
trading  76
acquisitions including emerging markets jv 4
foreign exchange translation  10
2010 underlying operating profit  447
year ended 30 september 2010
 underlying results
1
  statutory results
 2010 pro 2009 change 2010 2009
£m forma
2
 restated   restated
revenue 13525 13851 2  13400  13851 
operating profitloss 447 401 11  81  5
profitloss before tax 337 324 4  36 94
basic eps p 220 200 10  78 48
dividend per share p 110 107 3  110 107
1 underlying operating profit and underlying profit before tax are from continuing operations and exclude separately disclosed items 
amortisation of acquisition related expenses goodwill impairment and interest and taxation on the group’s share of the results of joint 
ventures and associates  underlying profit before tax also excludes separately disclosed financial expenses  underlying earnings per share 
excludes the same items net of related taxation
2 pro forma unaudited results for the period reported before the estimated financial impact of the closures of european airspace as a result of 
volcanic ash  see note 1biii on page 71 for basis of preparation over the pro forma financial information
a reconciliation of underlying operating profit to 
statutory operating profitloss is as follows
 2010 2009
year ended 30 september £m £m
underlying operating profit  447  401 
separately disclosed items –  
operating note 3 181 340
volcanic ash impact 104 – 
impairment of goodwill 12 7
acquisition reiated expenses 63 56
taxation on profits of joint  
ventures and associates 6 3
statutory operating  
profitloss  81  5
as previously announced and consistent with the 
adoption of ifrs 8 which requires that an entity’s 
operating segments are reported on the same 
basis as internally reported information the results 
of joint ventures and associates are now reported 
within each relevant sector’s result group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 33
northern region   2010 2009 change 
customers ’000
1
 
uk  ireland  5399 5687 5
nordic  1224 1177 4
total  6623 6864 4
revenue £m
uk  ireland  3392 3245
2
 5
nordic  904 797 13
canada
1
  52 168 69
total  4348 4210 3
underlying operating  
profitloss £m
uk  ireland  127 142
2
 11
nordic  60 48 25
canada  5 24 79
total  182 166 10
underlying operating  
margin  
uk  ireland  37 44
2
 70bps
nordic  66 60 60bps
canada  na na na
total  42 39 30bps
1 from 14 january 2010 our canadian operations have been 
accounted for under the equity method and canadian customer 
numbers have been excluded
2 restated
uk  ireland
the uk  ireland businesses delivered an 
underlying operating profit of £127m 2009 
restated £142m  
summer trading was not strong enough to offset 
increased losses in the winter season  winter 
losses increased largely due to planned capacity 
reductions which whilst ensuring that supply and 
demand were in balance removed holidays from 
the programme that had previously made a  
positive contribution  
the summer trading performance was affected  
by a slowdown in bookings following a downturn  
in consumer confidence in the early summer  
consumer booking trends were affected by the 
recurrence of airspace closures caused by the 
volcanic ash the emergency budget and 
subsequent austerity measures and the better 
than average uk weather combined with the 
expected quiet trading period during the world 
cup  the slowdown resulted in more stock left to 
sell in the lates period than expected and although 
this period traded well margins were inevitably 
affected by this shift to later booking patterns
sector revenue
10 £117bn
09 £120bn
northern region
the northern region achieved a 10 improvement 
in underlying operating profit to £182m in 2010 
2009 £166m  the improvement was largely 
driven by incremental merger synergies of £62m 
and an improved result in canada following the 
strategic venture with sunwing partially offset by 
trading in the uk  
underlying operating profit bridge
 uk     northern 
£m ireland nordics canada region
2009 excl jvs  
 associates 142  46 24 164 
2009 jvs   
associates –  2  – 2 
2009 incl jvs  
 associates 142  48  24 166 
synergies 62  – – 62 
turnaround 2  –  19  21 
trading 79 7  – 72
acquisitions –  2  –  2 
fx translation –    3  – 3 
2010 incl jvs  
 associates 127  60  5 182 
business performance
segmental performance
mainstream sector
sustainable holidays 
in 2010 tui uk rolled out a 
sustainable development contract 
addendum to main hotel suppliers 
making it compulsory for them to 
subscribe to and be audited by the 
travelife sustainability system  
hotels achieving a travelife award are 
featured in first choice and thomson’s 
online ‘greener holidays’ brochures 
making it easier for customers to 
identify a more sustainable break 
wwwits4travelcom wwwtuitravelplccom
34 tui travel plc annual report  accounts 2010
business performance
segmental performance continued
as a part of the nordic business’ focus on 
sustainability tuifly nordic became the first 
charter airline globally to achieve iso 14001 
certification  furthermore during 2010 all 
mediterranean blue villages achieved this 
certification
the business has also invested in multimedia 
content to improve online product presentation 
and this has further promoted the web as the  
main distribution channel  web sales increased to 
57 2009 52  from summer 2011 traditional 
holiday brochures will no longer be produced 
emphasising the online culture within the business  
total controlled distribution was flat at 85 as we 
reduced the number of owned stores
canada
canada reported an underlying operating loss  
of £5m 2009 loss of £24m  this represents a 
significant turnaround in our participation in 
canada and results from the completion of the 
strategic venture with sunwing in january 2010  
the transaction has strengthened our position in 
the canadian market providing the group with a 
49 stake in the second largest tourism business  
on an annualised basis assuming the strategic 
venture was effective for the full financial year 
canada would have delivered a profit of £2m  
in 2010  
we have identified opportunities to realise 
significant synergies in the venture primarily 
though network planning benefits and actions to 
remove duplicated resources such as migration to 
a single reservation system integration of certain 
back office functions and consolidation of office 
premises  we estimate that our share of the 
synergy benefits is worth at least £8m per  
annum resulting in a target of £10m for our  
share of the venture’s profits  
the expansion of unique products continued in 
2010 helping to mitigate margin pressure in 
commodity products with the differentiated 
product mix increasing by three percentage points 
to 42  this included the opening of sensatori 
tenerife in may and the expansion of the first 
choice holiday village portfolio with new units  
in lanzarote and rhodes  
controlled distribution increased by three 
percentage points to 81 in 2010 driven by  
the online channel  this was supported by 
improvements in functionality to the thomson  
and the first choice websites and the success of 
personalised portals such as ‘mythomson’ which 
allows customers to manage their bookings online
our business in ireland delivered £2m of 
turnaround progress  a rationalisation in capacity 
resulted in an improved trading performance 
helped by the highprofile failure of a competitor  
furthermore cost savings were achieved through 
backoffice restructuring and optimisation of  
the distribution network which included the 
introduction of a virtual call centre and a  
reduction in the number of retail shops
nordic region
the nordic region consisting of our operations in 
sweden norway denmark and finland achieved 
an improved underlying operating profit of £60m 
2009 £48m
the profit improvement was largely driven by a 
sharp improvement in customer demand coupled 
with successful capacity planning  the business is 
highly flexible as inhouse flying accounts for only 
circa 60 of all packages sold allowing capacity  
to be adjusted to meet market demand  after 
reducing capacity in summer 2009 and winter 
200910 in response to lower demand the business 
was able to add capacity when demand improved 
for summer 2010
demand for tui nordics holidays outstripped that 
for competitors’ products as a result of multiyear 
investment in product and service differentiation 
which has contributed to strong improvements in 
customer satisfaction scores and repeat bookings  
the range of unique products was further 
increased in 2010 with the opening of a blue village 
exotic aquamarine in hurghada the ecofriendly 
blue village atlantica caldera creta paradise and 
blue village bellavista in bulgaria
increasing differentiated 
products
during the year tui nordic opened 
three additional blue village family 
concepts in hurghada crete and 
bulgaria  in the uk thomson 
launched thomson couples an 
adultonly experience designed 
to offer childfree holidays  
substantial work has been done 
in order to develop differentiated 
concepts that can work in several 
source markets  the uk concepts 
– thomson couples splash hotels 
with waterparks and holiday 
villages activityfocused family 
hotels – were introduced in the 
nordic market   group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 35
germany
underlying operating profit was £81m an 
improvement of £11m 2009 £70m  underlying 
operating margins also improved by 40bps to 21 
2009 17  this improvement was driven by the 
£20m benefit of exiting from scheduled flying 
operations  this transaction was also the primary 
driver behind the 21 reduction in customers in 
the year
trading in the tour operator deteriorated by £6m 
versus the prior year  this was largely as a result  
of weak trading in q3 2010 with lower load factors  
in june lost sales following the volcanic ash 
disruption price pressure on commodity product 
and by a shift in mix towards lower margin holidays 
such as overland tours  summer 2010 bookings 
improved significantly in the last quarter of 2010 
with volumes up 14 in q4 2010 over the prior  
year however the increased lates mix also led  
to a reduction in profitability  the result was  
also affected by foreign exchange translation  
losses of £3m  
germany improved its controlled distribution by 
two percentage points to 51  during 2010 the 
online brand 12flycom was launched offering 
dynamically packaged flight and hotel content
austria
austria reported underlying operating profits of 
£9m 2009 £8m and an improvement of 80bps in 
underlying operating margin to 28 2009 20  
underlying margins improved by £1m over the prior 
year due to growth in demand for differentiated 
hotel content such as magic life pegasos and the 
blue collection and an increase in online volumes  
controlled distribution increased by 10 percentage 
points to 31  
switzerland 
switzerland reported underlying operating profits 
of £4m and an underlying operating margin of 
22 a significant improvement over 2009’s 
breakeven result  this was primarily as a result  
of margin improvement driven by fewer holidays 
sold in the lates market versus prior year  
poland
poland reported an underlying operating loss  
of £2m in 2010 2009 loss of £7m  customer 
demand for the summer 2010 programme was 
strong with volumes up 24 over prior year in  
h2 10  
central europe 
the central europe division reported an underlying 
operating profit of £92m in 2010 an improvement 
of £21m over the prior year 2009 £71m  this 
improvement is principally due to the elimination  
of scheduled flying losses £20m
underlying operating profitloss bridge
   switzer  central
£m germany austria land poland europe
2009 excl  
jvs  ass  65 8 – 7 66
2009 jvs  ass  5 – – – 5
2009 incl  
jvs  ass  70 8 – 7 71
turnaround   20 – – 5 25
trading   6 1 4 – 1
synergies  – 1 – – 1
fx translation  3 1 – – 4
2010 incl  
jvs  ass  81 9 4 2 92
 
central europe  2010 2009 change 
customers ’000
germany  6938 8775 21
austria  558 565 1
switzerland  286 286 flat
poland  116 104 12
total  7898 9730 19
revenue £m
germany  3800 4144 8
austria  324 405 20
switzerland  183 185 1
poland  68 62 10
total  4375 4796 9
underlying operating  
profitloss £m
germany  81 70 16
austria  9 8 13
switzerland  4 – na 
poland  2 7 71
total  92 71 30
underlying operating  
margin 
germany  21  17 40bps
austria  28  20 80bps
switzerland  22 – 220bps
poland  29 113 840bps
total  21  15 60bps
tui environmental 
conference 
in june 2010 tui deutschland 
hosted an environmental conference 
for accommodation suppliers 
in antalya turkey  almost 100 
hoteliers attended the event learning 
about best practice environmental 
initiatives from tui deutschland’s 
‘umwelt environmental champion’ 
hotels  in 2011 a sustainability 
conference for hoteliers in the  
canary islands will be organised  
growth in river cruises
following the continuously growing 
river cruise market and the success 
with the first river cruise ship 
‘maxima’ tui launched its second 
ship ‘sonata’ in august 2010  with 
a completely new product line 
featuring modern design diversified 
programme and excellent service 
and quality the tui river cruise fleet 
will address the increasingly younger 
river cruise customers wwwtuitravelplccom
36 tui travel plc annual report  accounts 2010
france
underlying operating profit bridge
 nouvelles
£m frontières corsair marmara france
2009 13 24 18  19
turnaround 6  – – 6 
trading  – 1  1  2 
synergies 2  – 1  3 
fx translation 2 1 1 4
2010 7 24 19  12
france reported an underlying operating loss of 
£12m in 2010 2009 loss of £19m  the £7m 
improvement was mainly due to continued 
turnaround in nouvelles frontières  
nouvelles frontières benefited from reduced costs 
following the restructuring implemented last year 
and from the successful introduction of the new 
nouvelles frontières hotel clubs concept and the 
extended flight programme out of regional airports 
in france  online sales also increased by five 
percentage points to 17 of total bookings  
marmara increased its market share across all  
of its destinations in the year and also successfully 
added new medium and longhaul destinations  
controlled distribution increased by three 
percentage points to 41  
collaboration between the two tour operators  
in france delivered incremental synergies of  
£3m in the year
corsair reported a flat underlying operating result  
the scheduled flying market in france continues to 
be highly competitive and management is executing 
plans to make corsair a viable airline in the future
netherlands
netherlands reported an underlying operating 
profit of £7m 2009 £7m  underlying operating 
margins improved in 2010 by £1m driven by  
a three percentage increase in controlled 
distribution to 60 2009 57  this was mainly 
due to strong online growth due to improved 
websites for arkenl and arkeflynl  however 
foreign exchange translation adversely affected  
the result by £1m  
belgium
belgium achieved a strong improvement in 
underlying operating profits to £56m 2009 £45m  
customer volumes increased by 4 over the prior 
year driven by the launch of new destinations  
and growth in the offering from regional  
airports  margins also improved as a result of  
a five percentage point increase in controlled 
distribution to 55 driven by the online channel
western europe
western europe reported underlying operating 
profits of £51m in 2010 an improvement of  
£18m over the prior year 2009 £33m  the 
improvement was largely driven by strong trading 
in belgium and turnaround in nouvelles frontières
underlying operating profitloss bridge
    western 
£m france netherlands belgium europe
2009 19 7  45  33 
trading  2  – 13  15 
turnaround 6  1  – 7 
synergies 3  – – 3 
fx translation 4 1 2 7
2010 12 7  56  51 
 
western europe  2010 2009 change 
customers ’000
france  2031  1959  4
netherlands  1211  1274  5
belgium  1861  1790  4
total  5103  5023  2
revenue £m
france  1244  1228  1
netherlands  668  700  5
belgium  754  724  4
total  2666  2652  1
underlying operating  
lossprofit £m 
france  12 19 37
netherlands  7  7  flat
belgium  56  45  24
total  51  33  55
underlying operating  
margin 
france  10 15 50bps
netherlands  10   10  flat
belgium  74  62  120bps
total  19  12  70bps
business performance
segmental performance continued
launch of differentiated 
products and new 
destinations 
nouvelles frontières and marmara 
have been working closely together 
to develop two destinations with 
differentiated products for the 
french market  they collectively 
launched marbella as a new medium
haul destination each with their own 
club while sharing flight capacity  
on longhaul marmara launched 
mauritius as a new destination 
capitalising on access to nouvelles 
frontières hotels and flight capacity 
with the inhouse carrier corsairfly   group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 37
within the flat underlying trading result the b2b 
and b2c online businesses have benefited from 
strong volume growth and improved conversion 
rates  profitability was offset however by startup 
investment in new markets within the online 
businesses and the impact of reduced tour 
operator volumes in the incoming business and 
reduced activity in our asian meetings incentives 
conferences and entertainment business which 
suffered from reduced corporate spending in the 
early part of the year
sector revenue
10 £760m
09 £719m
accommodation  destinations sector
the ad sector reported underlying operating 
profits of £71m in 2010 2009 £67m  the 
underlying trading result was unchanged with the 
increase driven by incremental merger synergies of 
£4m and a £1m contribution from the annualisation 
of prior year acquisitions partially offset by foreign 
exchange translation losses of £1m
accommodation  destinations 
    change 
customers  
b2b roomnights    23
b2c roomnights    17
incoming passenger volumes   4
  2010 2009 change 
revenue £m  551 552 flat
underlying operating  
profit £m  71 67 6
underlying operating  
margin   129 121 80bps
 
investment in asiarooms
one of the key achievements 
during this year has been the 
investment made in the asiarooms 
brand  we have increased our 
own hotel inventory in the region 
by 62 7800 hotels rebranded 
the website and implemented a 
commissionable model with our  
hotel partners  we believe we are 
now in a position to capture the 
tremendous growth expected in the 
asian online travel market space in 
the coming years
accommodation  destinations sector
giving back 
businesses across this sector 
support many charities  for example 
this year the sector supported a 
charity local to its head office in 
mallorca  over €10000 was donated 
to the allen graham charity 4 kidz 
which supports children in need on 
the island wwwtuitravelplccom
38 tui travel plc annual report  accounts 2010
the adventure businesses reported underlying 
operating profits of £9m 2009 £13m  the 
annualisation of acquisitions made in the prior  
year contributed £3m of profit in 2010  however 
underlying trading worsened by £7m despite  
higher earnings at small group adventure operator 
exodus mainly due to weak demand in australian 
adventure and polar cruising  our australian 
businesses had a challenging time peregrine 
adventures saw lower demand for higher priced 
longhaul travel adventure tours australia felt  
the effect of the strong australian dollar which 
rendered outback experiences less affordable to 
their backpacker clients although good progress 
has been made in extracting cost synergies 
following the combination of a number of similar 
businesses acquired in the last three years  polar 
expedition specialist quark had a difficult year with 
clients reluctant to commit to their higher priced 
iconic cruises in the uncertain economic climate
the ski student and sports divisions increased 
underlying operating profits by £9m to £36m 
2009 £27m  the divisions delivered strong 
trading growth of £3m driven by growth in the 
student businesses and a good year for the sports 
division due to the football world cup vancouver 
olympics and england’s cricket tour to south 
africa  businesses acquired during the year plus 
the annualisation of acquisitions made in the prior 
year contributed £4m of incremental profit  in the 
student division the integration of new acquisitions 
hampstead school of english and the manchester 
academy of english with our existing business 
eac language centres has created a strong brand 
presence in the english language teaching industry  
in the ski division crystal the uk’s largest ski 
operator experienced strong customer demand  
for its new crystal ski product which includes  
ski hire and lift pass in the package at highly 
competitive rates  the business also delivered 
incremental synergies of £2m through the 
integration of the former tui and first choice  
ski businesses
sector revenue
10 £868m
09 £816m
the activity sector delivered underlying operating 
profits of £61m in 2010 2009 £59m driven by 
£7m of profits from acquisitions and £2m of 
incremental synergies offset by £6m due to 
weaker trading and a £1m loss from foreign 
exchange translation
activity   
  2010 2009 change 
revenue £m 
marine  134 131 2
adventure   286 240 19
ski student and sport 448 445 1
total  868 816 6
underlying operating  
profit £m
marine  16 19 16
adventure   9 13 31
ski student and sport 36 27 33
total  61 59 3
underlying operating  
margin 
total  70 72 20bps
the marine division reported underlying profits  
of £16m a decrease of £3m versus the prior year 
2009 £19m primarily due to weak demand for 
the winter 200910 programme
business performance
segmental performance continued
thomson sport wins 
arsenal contract
thomson sport secured a threeyear 
commercial partnership as arsenal’s 
official uk travel agency partner 
which includes business travel team 
travel supplier official supporters’ 
travel supplier marketing rights 
and access to over 250000 arsenal 
supporters to sell packages and 
holidays  
volunteering day 
in 2010 the activity sector  
relaunched its ‘charity day’  
scheme – giving over 4900 
colleagues the opportunity to 
volunteer for a day at a chosen 
charity  this opportunity was used 
to clean up local environments work 
with sick children and raise money 
for key projects within the sector
activity sector group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 39
us
the us division reported underlying operating 
profits of £8m 2009 £15m  the reduction in 
profits was due to the circa 70 reduction in the 
number of tours operated by our us private jet 
tours business in winter 200910 as the key 
booking period for this season was during the  
peak of the recession in the fourth quarter of  
2008  following a strong recovery in demand  
we have increased the number of tours for the 
winter 201011 season and the business is 
performing well
emerging markets
this division reported underlying operating losses 
of £6m 2009 profit £1m due to our continued 
investment in market and product development in 
the businesses we acquired in russia and the cis  
in 2010 the tui brand was introduced into these 
markets with the rebranding of the retail network 
the launch of a tui website and the cobranding  
of brochures  the division now has 480000 
customers and a retail estate of over 150 travel 
agencies  the russian and ukrainian markets  
remain attractive with the annual package  
market estimated to be between 85 million and  
10 million customers
strong macroeconomic conditions positive 
consumer behaviour and a growing appetite  
for travel make the markets of brazil india and 
china particularly interesting  the group already 
has a presence in these markets however we are 
currently evaluating our participation strategy 
across all three markets
sector revenue
10 £717m
09 £825m
the specialist  emerging markets sector reported 
underlying operating profits of £19m in 2010 2009 
£32m  the decrease was driven by startup losses 
of £6m in emerging markets and capacity cuts in 
our private jet tours business in the us partly 
offset by better trading in the uk division
specialist  emerging markets
  2010 2009 change 
customers ’000
europe  536  530  1
us  267  290  8
total  803  820  2
revenue £m
europe  547  584  6
us  170  241  29
total  717  825  13
underlying operating  
profitloss £m
europe  17  16  6
us  8  15  47
emerging markets  6 1  na
total  19  32  41
underlying operating  
margin 
total  26 39 130bps
europe
underlying operating profit was £17m 2009 
£16m  this was mainly as a result of margin 
improvement in some of the uk businesses such 
as hayes  jarvis sovereign and citalia who were 
able to change the mix of holidays sold to a higher 
proportion of premium holidays in 2010  
staycation versus vacation
hayes  jarvis launched a 
‘staycationvacation’ advertising 
and marketing campaign to challenge 
the publicity in the press that this 
was the summer for holidaying in 
the uk  hayes  jarvis focused 
on sourcing very strong air and 
land offers from key suppliers 
particularly for their four and five
star products  these were promoted 
in a slightly tongueincheek fashion 
comparing great value longhaul 
luxury holidays in some of the more 
exotic destinations to a sample of 
british holiday resorts  
specialist  emerging markets sector 
sustainable development 
challenge 
managing directors in the sector 
responded to a challenge to 
showcase how they had taken 
personal action or worked with 
their teams to bring the value of 
‘responsible leadership’ to life   
uk specialist longhaul brands 
donated over £34000 for ‘just a 
drop’ a charity which works to 
deliver water to those who need  
it most wwwtuitravelplccom
40 tui travel plc annual report  accounts 2010
in the uk as previously reported capacity for the 
season is 5 higher due to a change in the fleet 
mix in canada from b757s to smaller b737s which 
results in a higher number of b757s in the uk  
trading remains positive with booking increases  
in line with the capacity change and higher average 
selling prices  load factor is currently 47   
in november and december two of thomson  
cruises’ five ships are in extended dry dock for 
routine maintenance and the resulting reduction  
in contribution will partially offset improved  
trading in the tour operator in that period
in the nordic region cumulative bookings are now 
up 31 versus the prior year and the load factor is 
81 up eight percentage points  demand for our 
marketleading portfolio of differentiated products 
coupled with the successful use of an additional 
longhaul aircraft from our airline in france is 
driving these strong booking volumes  our product 
offering has been enhanced for winter 201011 and 
summer 2011 through cooperation with the uk 
business to bring the splash holiday village and 
sensatori concepts to the nordic region  
in germany booking volumes remain ahead of 
capacity with volumes up 9 versus the prior  
year  due to the late timing of easter and in 
response to demand we are commencing certain 
summer destinations earlier than usual and as 
these departure dates are reported as part of  
the winter season reported ‘winter’ capacity is  
up 6  adjusting for this effect underlying winter 
capacity is flat  our load factor in germany is 
currently 57
in the western europe source markets the strong 
booking activity experienced towards the latter 
part of the summer season has continued into 
winter  in france demand for our differentiated 
nouvelles frontières hotel clubs and club marmara 
products is a key driver of volume growth
in the specialist  activity sector all divisions  
have experienced higher sales to date versus the 
prior year  our private jet tours businesses tcs 
and starquest have seen a strong rebound in 
booking activity as the number of tours has 
increased following the reduction in 200910  
there has also been good growth in our market
leading ski brand crystal
in ad the strong booking volumes for online 
accommodation experienced in 2010 has continued 
with booking volumes transaction values and 
margins all higher than the prior year
winter 201011
we have continued to see positive recent trading 
trends across most source markets  in line with our 
product strategy we have expanded our portfolio 
of differentiated product and unique holiday 
experiences and this is driving booking activity
   bookings 
   since
  cumulative  previous cumulative
yearonyear customer  bookings at  trading bookings
booking variation   17 oct  statement at 21 nov
uk  6 2 5
nordic region  32 27 31
germany  10 9 9
france  13 6 8
belgium  15 7 12
netherlands  12 18 14
business performance
current trading
current trading
1
 winter 201011
 
    risk only
 t otal t otal  t otal
yearonyear variation  asp
2
 sales
2
 customers
2
 capacity
3
 left to sell
3
mainstream
uk 11 16 5 5 3
nordic flat 31 31 18 18
northern region  7 21 14  
germany  2 11 9 6 flat
austria 7 6 flat  
switzerland 2 4 1  
poland 12 2 11  
central europe 1 10 8  
france 3 11 8  
belgium 2 11 12  
netherlands  6 20 14  
western europe 2 13 11  
specialist  activity na 4 na  
accommodation   
destinations
4
 7 33 25  
1 these statistics are up to 21 november 2010
2 these statistics relate to all customers whether risk or nonrisk
3 these statistics include all risk capacity programmes
4 these statistics refer to b2b online businesses only and sales refer to total transaction value ttv group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
tui travel plc annual report  accounts 2010 41
we expect this restructuring programme to enable 
the airline to achieve at least a breakeven result  
material benefits from the programme are expected 
to start to come through in 2012 with the full 
benefits delivered in 2013
integration and cost efficiencies
the merger integration is now largely complete  
and we have delivered £195m of synergy benefit  
to date with the remaining £5m expected to be 
delivered in 2011  as part of the integration 
process we have identified and removed areas  
of duplicated cost  we are however continuing  
to review areas of our cost base to maintain 
competitiveness especially in commodity 
segments  these include cost reductions and 
productivity improvements in group airlines 
replacement of core reservation systems in the  
uk and germany and an overhead reduction 
programme throughout the business
outlook
since july we have experienced a sustained 
improvement in trading which resulted in  
summer 2010 closing out well in all source  
markets and positive trends for the winter  
201011 and summer 2011 seasons  trading  
for our unique differentiated product continues  
to outperform commodity segments and we  
are introducing new concepts in 2011 leaving  
us well placed to capitalise on this trend   
whilst encouraged by current trading we  
remain cautious about 2011 given the continued 
economic uncertainty and the relatively early  
stage of the booking cycle
summer 2011
trading for summer 2011 remains good in those 
source markets currently on sale  
in the uk total booking volumes are up 7  
versus the prior year driven by demand for our 
differentiated product and increased duration 
flexibility  bookings for differentiated products  
are currently up 26 and we expect these products 
to represent half of all holidays sold over the full 
season  we have increased the flexibility in holiday 
durations significantly and have experienced strong 
demand for nine to 12night durations
average selling prices in the uk are currently up  
4 versus the prior year and given that summer 
2011 is expected to have minimal cost inflation 
based on achieved hedged rates and current 
forward rates margins are currently ahead of  
the prior year  
in the nordic region booking volumes are  
up 13 again driven by our portfolio of 
differentiated products  
fuelforeign exchange
we have hedged a significant proportion of our 
expected fuel and foreign exchange exposure 
for 2011
   winter summer 
   201011  2011
euro   87 83
usd   92 85
jet fuel   87 86
as at 25 november 2010
corsair 
after constructive and positive discussions 
negotiations with employees and union 
representatives have been finalised enabling 
corsair to implement its turnaround plan  
employees have demonstrated strong support  
for the airline and a great willingness to deliver  
a successful turnaround  social plans have been 
signed with the required employee representatives
under the turnaround project we plan to change 
the fleet to replace three of our b747 aircraft with 
two a330 aircraft which will optimise capacity and 
route planning  customers will enjoy a significantly 
improved onboard experience as we also reconfigure 
and update the cabins in the existing fleet
we have agreed a number of significant productivity 
improvements with employee representatives 
including a reduction in the number of employees 
by circa 25 a freeze on salaries for a period of 
three years a reduced cabin crew composition and 
rationalisation of allowances  
current trading
1
 summer 2011
 
    risk only
 t otal t otal  t otal
yearonyear variation  asp
2
 sales
2
 customers
2
 capacity
3
 left to sell
3
uk 4 11 7 1 flat
nordic 1 14 13 5 4
northern region  4 11 7  
1 these statistics are up to 21 november 2010
2 these statistics relate to all customers whether risk or nonrisk
3 these statistics include all risk capacity programmes 42  t u i  t r a v e l p l c a n n u a l  r e p o r t   a c c o u n t s  2 0 1 0
go v ernanc e
board of directors
1 2 3
4 5 6
7 8 9
10 11 12
13 14 15
16 17
wwwtuitravelplccom group at a glance strategic overview business performance governance financial statements shareholder information
 
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  43
fi n a n c e   d i r ec t o r    p r i o r   t o   j o i n i n g   t h o m s o n   t r a v e l   g r o u p  
i n   2 0 0 1      h e   t h e n   w e n t   o n   t o   b ec o m e   c h i e f   f i n a n c i a l  
o f fic e r   o f   t u i   t o u r i s m   i n   2 0 0 6 
6 dr volker böttcher
managing director central europe age 51
v o l k e r   b ö t t c h e r   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   o n 
1 9   j u n e   2 0 0 7   a n d   i s   r e s p o n s i b l e   f o r   c e n t r a l   e u r o p e   i n  
t h e   m a i n s t r e a m   s ec t o r      a f t e r   a n   e a r l y   c a r ee r   i n   la w  
v o l k e r   j o i n ed   t o u r i s t i k   u n i o n   i n t e r n a t i o n a l   i n   1 9 8 7   a s 
a   l e g a l   a d v i s o r      h a v i n g   o c c u p i ed   v a r i o u s   m a n a g e m e n t  
p os i t i o n s    h e   b ec a m e   h e a d   o f   t u i ’ s   s p ec i a l   p r o g r a m m e s  
d i v i s i o n   i n   1 9 96   w h i c h   i n c l u d ed   r e s p o n s i b i l i t y   f o r    
l o n g  h a u l   d e s t i n a t i o n s    c i t y   t o u r s   a n d   t h e   e a s t e r n  
m ed i t e r r a n e a n      i n   2 0 0 3   v o l k e r   w a s   a p p o i n t ed   c h a i r m a n  
f o r   c e n t r a l   e u r o p e   f o r   t u i   a g    b e i n g   r e s p o n s i b l e   f o r   a l l 
t o u r i s m   a c t i v i t i e s   i n   t h e   s o u r c e   m a r k e t s   o f   g e r m a n y   
au s t r i a    s w i t z e r la n d   a n d   p o la n d      h e   w a s   a p p o i n t ed   t o  
t h e   b o a r d   o f   t u i   d e u t s c h la n d   g m b h   i n   a p r i l   2 0 0 0    
f o l l o w i n g   t h e   r e s t r u c t u r i n g   o f   t u i ’ s   b u s i n e s s   m o d e l   i n 
g e r m a n y    h e   w a s   a p p o i n t ed   c e o   o f   t u i   d e u t s c h la n d  
g m b h   i n   j u l y   2 0 0 1       
7 johan lundgren
managing director northern region age 44
j o h a n   l u n d g r e n   w a s   a p p o i n t ed   t o   t h e   b o a r d   o f   t u i  
t r a v e l   p l c   o n   2 1   d ec e m b e r   2 0 0 7      h e   i s   r e s p o n s i b l e   f o r  
t h e   n o r t h e r n   r e g i o n   w h i c h   i n c l u d e s   a l l   m a i n s t r e a m  
t o u r i s m   s a l e s   i n   t h e   u k      i r e la n d    c a n a da    s w ed e n   
n o r w a y    d e n m a r k   a n d   f i n la n d      j o h a n   h a s   w o r k ed   i n 
t h e   n o r d i c   t o u r i s m   i n d u s t r y   f o r   a l m os t   2 5   y e a r s    1 4   o f 
w h i c h   h a v e   b ee n   a s   a   m a n a g i n g   d i r ec t o r      b e t w ee n   1 9 9 9  
a n d   2 0 0 1    h e   w a s   p r e s i d e n t   o f   su n q u e s t   v a c a t i o n s   i n 
c a n a da      j o h a n   w e n t   o n   t o   b ec o m e   c h i e f   e x ec u t i v e   o f  
t u i   n o r d i c   a n d   a l s o   t o o k   r e s p o n s i b i l i t y   f o r   t o u r i s m   s a l e s  
i n   t h e   s o u r c e   m a r k e t s   o f   i t a l y   a n d   r u s s i a    
8 rainer feuerhake
nonexecutive director age 66
r a i n e r   f e u e r h a k e   j o i n ed   t h e   p r e u s s a g   g r o u p    n o w   
t u i   a g    i n   1 96 8   a n d   b y   1 9 8 0   w a s   r e s p o n s i b l e   f o r   g r o u p 
a c c o u n t i n g      r a i n e r   w a s   a p p o i n t ed   a s   c h i e f   f i n a n c i a l 
o f fic e r   o f   p r e u s s a g   a g   i n   n o v e m b e r   1 9 8 8   a n d  
s u b s eq u e n t l y   t u i   a g    f o l l o w i n g   a   r e s o l u t i o n   t o   r e n a m e 
p r e u s s a g   a g   o n   1   j u l y   2 0 0 2       i n   t h i s   p os i t i o n   r a i n e r 
w a s   r e s p o n s i b l e   f o r   t h e   d e p a r t m e n t s   o f   a c c o u n t i n g     
r e p o r t i n g    f i n a n c e    i n v e s t o r   r e la t i o n s    t a x   a f f a i r s  
m e r g e r s      a c q u i s i t i o n s    d e s t i n a t i o n   m a n a g e m e n t   a n d  
t h e   s h a r ed   s e r v i c e   c e n t r e      h e   r e s i g n ed   a s   c h i e f  
f i n a n c i a l   o f fic e r   i n   f e b r ua r y   2 0 1 0   a n d   i s   n o w   a c t i n g   a s   
a   c o n s u l t a n t   f o r   t u i   a g      h e   j o i n ed   t h e   b o a r d   o f   t u i  
t r a v e l   p l c   o n   2 8   j u n e   2 0 0 7 
9 tony campbell
nonexecutive director age 61
t o n y   c a m p b e l l   b e c a m e   a   n o n  e x e c u ti v e   d i r e c t o r   
o f   f i r s t   c h o i c e   h o l i d a y s   p l c   i n   a p r i l   1 9 9 7   a n d   j o i n e d   th e 
b o a r d   o f   t u i   t r a v e l   p l c   o n   2 8   j u n e   2 0 0 7   a s   a   n o n 
e x e c u ti v e   d i r e c t o r      t o n y   w a s   d e p u t y   c h i e f   e x e c u ti v e   o f 
a s d a   s t o r e s   l i m i t e d   u n ti l   m a r c h   2 0 0 1      h e   i s   c u r r e n tl y  
th e   c h a i r m a n   o f   h o b b s   h o l d i n g   n o   1   l i m i t e d    t   m   l e w i n 
g r o u p   l i m i t e d    t h e   w h i t e   c o m p a n y    u k    l i m i t e d   a n d   a  
d i r e c t o r   o f   d a t a   t r a n s f e r      c o m m u n i c a ti o n s   l i m i t e d 
10 clare chapman
nonexecutive director age 50
c la r e   c h a p m a n   b ec a m e   a   n o n  e x ec u t i v e   d i r ec t o r   o f  
f i r s t   c h o i c e   h o l i da y s   p l c   i n   m a r c h   2 0 0 3   a n d   j o i n ed   t h e  
b o a r d   o f   t u i   t r a v e l   p l c   o n   2 8   j u n e   2 0 0 7      c la r e   i s   t h e  
d i r ec t o r   g e n e r a l   o f   w o r k f o r c e   f o r   n h s   a n d   s o c i a l   c a r e  
d e p a r t m e n t   o f   h e a l t h      p r i o r   t o   t h i s    s h e   w a s   g r o u p  
p e r s o n n e l   d i r ec t o r   a t   t e s c o      i n   a d d i t i o n    c la r e   s e r v e s  
o n   t h e   au d i t   c o m m i t t ee   o f   j o b c e n t r e   p l u s   i s   a n  
a d v i s o r y   b o a r d   m e m b e r   f o r   t h e   j u d g e   i n s t i t u t e   
b u s i n e s s   s c h o o l   f o r   t h e   u n i v e r s i t y   o f   c a m b r i d g e    a n d    
a   f e l l o w   o f   t h e   i n s t i t u t e   o f   p e r s o n n e l 
11 bill dalton
nonexecutive director age 66
b i l l   d a l t o n   b ec a m e   a   n o n  e x ec u t i v e   d i r ec t o r   o f   f i r s t  
c h o i c e   h o l i da y s   p l c   i n   o c t o b e r   2 0 0 4   a n d   j o i n ed   t h e 
b o a r d   o f   t u i   t r a v e l   p l c   o n   1 9   m a r c h   2 0 0 7      h e   w a s 
p r e v i o u s l y   a n   e x ec u t i v e   d i r ec t o r   o f   h s b c   h o l d i n g s   p l c  
c h i e f   e x ec u t i v e   o f   h s b c   b a n k   p l c   a n d   g l o b a l   h e a d   o f  
p e r s o n a l   f i n a n c i a l   s e r v i c e s   f o r   t h e   h s b c   g r o u p      d u r i n g  
h i s   b a n k i n g   c a r ee r    h e   h a s   a m a s s ed   a   g r e a t   d e a l   o f  
i n t e r n a t i o n a l   e x p e r t i s e   a n d   i s   a l s o   a   n o n  e x ec u t i v e  
d i r ec t o r   o f   a   n u m b e r   o f   u k   a n d   n o r t h   a m e r i c a n  
c o m p a n i e s   i n c l u d i n g   a s s o c i a t ed   e l ec t r i c      g a s  
i n s u r a n c e   s e r v i c e s    a e g i s    a e g i s   m a n a g i n g   a g e n c y  
l i m i t ed    u k    h s b c   n o r t h   a m e r i c a   h o l d i n g   i n c  
t a l i s m a n   e n e r g y   i n c   a n d   u s   c o l d   s t o r a g e   i n c     
12 jeremy hicks
nonexecutive director age 57
j e r e m y   h i c k s   b ec a m e   a   n o n  e x ec u t i v e   d i r ec t o r   o f   f i r s t  
c h o i c e   h o l i da y s   p l c   i n   m a r c h   2 0 0 5   a n d   j o i n ed   t h e  
b o a r d   o f   t u i   t r a v e l   p l c   o n   2 8   j u n e   2 0 0 7      h e   i s   a 
c h a r t e r ed   a c c o u n t a n t   w i t h   a   n u m b e r   o f   b u s i n e s s  
i n t e r e s t s   p a r t i c u la r l y   i n   t h e   fie l d   o f   m a r k e t i n g   s e r v i c e s     
h e   h a s   e x t e n s i v e   e x p e r i e n c e   i n   t h e   w o r l d   o f   fi n a n c e   
a s   a n   i n v e s t m e n t   b a n k e r   a n d   m os t   r ec e n t l y   a s   c h i e f  
f i n a n c i a l   o f fic e r   o f   a e g i s   g r o u p   p l c    a   l e a d i n g   u k  b a s ed  
m u l t i  n a t i o n a l   m a r k e t i n g   s e r v i c e s   g r o u p    f r o m   w h i c h   h e  
r e s i g n ed   i n   a p r i l   2 0 0 7 
13 giles thorley
nonexecutive director age 43
g i l e s   t h o r l e y   b ec a m e   a   n o n  e x ec u t i v e   d i r ec t o r   o f   f i r s t  
c h o i c e   h o l i da y s   p l c   i n   f e b r ua r y   2 0 0 6   a n d   j o i n ed   t h e 
b o a r d   o f   t u i   t r a v e l   p l c   o n   1 9   m a r c h   2 0 0 7      g i l e s   i s 
n o n  e x ec u t i v e   c h a i r m a n   o f   t r a g u s   g r o u p   l i m i t ed     
a   l e a d i n g   r e s t a u r a n t   o p e r a t o r   i n   t h e   u k      h e   w a s   c h i e f  
e x ec u t i v e   o f fic e r   o f   p u n c h   t a v e r n s   p l c    t h e   u k ’ s   la r g e s t  
p u b   o p e r a t o r    f r o m   2 0 0 1   t o   s e p t e m b e r   2 0 1 0     a f t e r  
q ua l i f y i n g   a s   a   b a r r i s t e r    h e   h a d   a n   e a r l y   c a r ee r   a t 
n o m u r a   i n t e r n a t i o n a l   p l c      g i l e s   i s   a l s o   a   d i r ec t o r   o f 
m a t t h e w   c la r k   h o l d i n g s   l i m i t ed    t h e   u k ’ s   la r g e s t   w i n e  
w h o l e s a l e r   a n d   a   t r u s t ee   o f   t h e   r o n a   s a i l i n g   p r o j ec t 
14 harold sher
nonexecutive director age 63
h a r o l d   s h e r   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   a s    
a   n o n  e x ec u t i v e   d i r ec t o r   o n   2 9   o c t o b e r   2 0 0 7      h e  
s t u d i ed   c o m m e r c e   a t   u n i v e r s i t y   a n d   s t a r t ed   h i s   c a r ee r 
a s   a   c h a r t e r ed   a c c o u n t a n t      h a r o l d   m o v ed   t o   i n d u s t r y 
e a r l y   i n   h i s   c a r ee r   h o l d i n g   a   r a n g e   o f   e x ec u t i v e   p os i t i o n s  
b e f o r e   b e i n g   a p p o i n t ed   c h i e f   e x ec u t i v e   o f   a m a l g a m a t ed  
m e t a l   c o r p o r a t i o n   p l c   i n   1 9 9 2    a   p os i t i o n   h e   s t i l l   h o l ds    
h e   h a s   s e r v ed   a s   p r e s i d e n t   o f   a   m a j o r   n o r t h   a m e r i c a n 
s t ee l   s e r v i c e s   g r o u p   a n d    t o g e t h e r   w i t h   h i s   r o l e   a t  
a m a l g a m a t ed   m e t a l   c o r p o r a t i o n    t h i s   h a s   p r o v i d ed   h i m  
w i t h   b r o a d   i n t e r n a t i o n a l   c o m m e r c i a l   e x p e r i e n c e 
15 dr albert schunk
nonexecutive director aged 69
d r   a l b e r t   s c h u n k   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   a s 
a   n o n  e x ec u t i v e   d i r ec t o r   o n   2 9   o c t o b e r   2 0 0 7      a l b e r t  
s t u d i ed   ec o n o m i c s   a t   u n i v e r s i t y   a n d   c a r r i ed   o u t   a  
r e s e a r c h   p r o j ec t   f o r   t h e   g e r m a n   g o v e r n m e n t   i n   l a t i n 
a m e r i c a      a f t e r   j o i n i n g   i g  m e t a l l   h e   h a s   s e r v ed   o n   t h e  
s u p e r v i s o r y   b o a r d   o f   v o l k s w a g e n   a n d   o t h e r   g e r m a n 
c o m p a n i e s   s i n c e   1 9 7 6      i n   1 9 9 4   h e   b ec a m e   a   m e m b e r   o f 
t h e   e u r o p e a n   e c o n o m i c   a n d   s o c i a l   c o u n c i l   i n   br u s s e l s 
a n d   h a s   r ec e n t l y   b ee n   a d v i s i n g   t h e   r i u   g r o u p   i n   s p a i n 
16 dr erhard schipporeit
nonexecutive director age 61
d r   e r h a r d   s c h i p p o r e i t   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l  
p l c   a s   a   n o n  e x ec u t i v e   d i r ec t o r   o n   2 9   o c t o b e r   2 0 0 7     
h e   s t a r t ed   h i s   c a r ee r   i n   1 9 7 9   i n   t h e   b os c h   g r o u p   a n d   i n  
1 9 8 1   h e   j o i n ed   v a rt a   a g  v a rt a   b a t t e r y   a g    a t   t h a t 
t i m e   a   l e a d i n g   e u r o p e a n   b a t t e r y   c o m p a n y    w h e r e   h e 
b ec a m e   c h i e f   f i n a n c i a l   o f fic e r   i n   1 9 9 0   a n d   c h i e f  
e x ec u t i v e   a n d   c h a i r m a n   o f   t h e   e x ec u t i v e   b o a r d   i n   1 9 9 3     
a f t e r   t h e   s u c c e s s f u l   r e s t r u c t u r i n g   o f   v a rt a   t h e   n e x t  
m o v e   i n   h i s   c a r ee r   b r o u g h t   h i m   t o   t h e   m u n i c h   b a s ed  
c o n g l o m e r a t e   c o m p a n y   v i a g   a g   a s   c f o      v i a g   m e r g ed  
i n   2 0 0 0   w i t h   v e b a   a g   t o   f o r m   t h e   n e w   e  o n   a g    o n e   o f  
t h e   w o r l d ’ s   l e a d i n g   u t i l i t y   c o m p a n i e s      e r h a r d   w a s   c f o 
a n d   e x ec u t i v e   b o a r d   m e m b e r   o f   e  o n   f r o m   2 0 0 0   u n t i l 
h i s   r e s i g n a t i o n   i n   n o v e m b e r   2 0 0 6      i n   2 0 0 7   h e   w a s  
a p p o i n t ed   s e n i o r   a d v i s o r   f o r   b n p   p a r i b a s   s a   a n d   i s   a l s o 
c u r r e n t l y   a   n o n  e x ec u t i v e   d i r ec t o r   o f   a   n u m b e r   o f  
c o m p a n i e s   i n c l u d i n g   s a p   a g    d e u t s c h e   b o e r s e   a g   
t a la n x   a g   a n d   h a n o v e r   r u ec k v e r s i c h e r u n g   a g 
17 horst baier 
nonexecutive director age 54
h o r s t   b a i e r   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   a s    
a   n o n  e x ec u t i v e   d i r ec t o r   o n   1 3   o c t o b e r   2 0 0 9      h e  
c o m m e n c ed   h i s   p r o f e s s i o n a l   c a r ee r   i n   t h e   t r e a s u r y 
d e p a r t m e n t   o f   c o n t i n e n t a l   a g    t h e   g e r m a n   t y r e 
m a n u f a c t u r e r      b e t w ee n   1 9 9 4   a n d   1 9 96   h o r s t   w a s 
r e s p o n s i b l e   f o r   g r o u p   f i n a n c i n g   f o r   t h e   f ü r t h  b a s ed  
s c h i c k eda nz   g r o u p      i n   1 9 96    h e   t o o k   o v e r   r e s p o n s i b i l i t y  
f o r   t h e   t r e a s u r y    a c c o u n t i n g   a n d   t a x   d e p a r t m e n t   a t   t u i  
a g      si n c e   2 0 0 1    h o r s t   h a s   b ee n   r e s p o n s i b l e   f o r  
a c c o u n t i n g      r e p o r t i n g   f o r   t u i   a g   a n d    i n   n o v e m b e r  
2 0 0 7    w a s   a p p o i n t ed   t o   t h e   e x ec u t i v e   b o a r d   o f   t u i   a g 
w i t h   r e s p o n s i b i l i t y   f o r   t h e   c o n t r o l l i n g   f u n c t i o n      i n 
f e b r ua r y   2 0 1 0   h o r s t   w a s   a p p o i n t ed   c h i e f   f i n a n c i a l 
o f fic e r   o f   t u i   a g 
1 dr michael frenzel
nonexecutive chairman age 63
d r   m i c h a e l   f r e nz e l   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c 
o n   2 8   j u n e   2 0 0 7   a s   n o n  e x ec u t i v e   c h a i r m a n      m i c h a e l 
s t u d i ed   la w   a t   r u h r   u n i v e r s i t y   i n   b o c h u m   a n d  
c o m p l e t ed   h i s   d o c t o r a t e   w h i l s t   w o r k i n g   a t   t h e   u n i v e r s i t y 
a s   a   s c i e n t i fic   a s s i s t a n t      h e   j o i n ed   w e s t d e u t s c h e  
l a n d e s b a n k    w e s tl b    d ü s s e l d o r f    i n   1 9 8 1   w h e r e   h e 
w a s   p r o m o t ed   t o   v a r i o u s   m a n a g e r i a l   p os i t i o n s   a n d  
b ec a m e   m a n a g e r   o f   t h e   i n d u s t r i a l   h o l d i n g s   d e p a r t m e n t  
i n   1 9 8 3   a n d   o v e r a l l   m a n a g e r   o f   w e s tl b ’ s   e q u i t y  
h o l d i n g s   d i v i s i o n   i n   1 9 8 5   –   i n c l u d i n g   h o l d i n g s   i n 
b a n k i n g    l e a s i n g   a n d   r e a l   e s t a t e 
i n   1 9 8 8    h e   b ec a m e   a   m e m b e r   o f   t h e   p r e u s s a g   a g  
e x ec u t i v e   b o a r d    b e i n g   r e s p o n s i b l e   f o r   t r a d i n g   a n d  
lo g i s t i c s      m i c h a e l   h a s   h e l d   t h e   p os i t i o n   o f   c h i e f 
e x ec u t i v e   a n d   c h a i r m a n   o f   t h e   e x ec u t i v e   b o a r d   o f 
t u i   a g    f o r m e r l y   p r e u s s a g   a g    s i n c e   j a n ua r y   1 9 9 4  
o v e r s ee i n g   i t s   e x t e n s i v e   a c q u i s i t i o n   p r o g r a m m e   i n   
t h e   la t e   1 9 9 0 s    w h i c h   r e s u l t ed   i n   t h e   a c q u i s i t i o n s   o f   t u i 
a g ’ s   s t a k e   i n   h a p a g  l l o y d   a n d   o f   l e a d i n g   t o u r i s m  
b u s i n e s s e s   s u c h   a s   t h o m s o n   t r a v e l   a n d   n o u v e l l e s  
f r o n t i è r e s      m i c h a e l   i s   a l s o   c u r r e n t l y   a   m e m b e r   o f   t h e  
s u p e r v i s o r y   b o a r d   o f   a   n u m b e r   o f   c o m p a n i e s   i n c l u d i n g  
a x a   k o nz e r n   a g    a w d   h o l d i n g   a g   a n d   v o l k s w a g e n   a g 
2 sir michael hodgkinson 
nonexecutive deputy chairman and senior 
independent director age 66 
si r   m i c h a e l   h o d g k i n s o n   j o i n ed   t h e   b o a r d   o f   f i r s t   c h o i c e 
h o l i da y s   p l c   a s   a   n o n  e x ec u t i v e   d i r ec t o r   i n   j a n ua r y  
2 0 0 4   a n d   b ec a m e   c h a i r m a n   i n   m a r c h   2 0 0 4      h e   j o i n ed 
t h e   b o a r d   o f   t u i   t r a v e l   p l c   o n   2 8   j u n e   2 0 0 7   a s   n o n 
e x ec u t i v e   d e p u t y   c h a i r m a n   a n d   i s   t h e   s e n i o r 
i n d e p e n d e n t   d i r ec t o r      f o l l o w i n g   a n   e a r l y   c a r ee r   i n   t h e  
a u t o m o t i v e   i n d u s t r y    h e   w a s   a p p o i n t ed   c h i e f   e x ec u t i v e 
o f   g r a n d   m e t r o p o l i t a n ’ s   e u r o p e a n   f o o d   d i v i s i o n   i n   1 9 8 6 
a n d   i n   1 9 9 2   h e   j o i n e d   b a a   p l c    b e c o m i n g   c h i e f   e x e c u ti v e  
i n   1 9 9 9    a   p os t   f r o m   w h i c h   h e   r e t i r ed   i n   j u n e   2 0 0 3    
si r   m i c h a e l   w a s   s e n i o r   n o n  e x ec u t i v e   d i r ec t o r   a t    
r o y a l   m a i l   a n d   c h a i r m a n   o f   p os t   o f fic e   l i m i t ed   u n t i l 
s e p t e m b e r   2 0 0 7   a n d   i s   c u r r e n t l y   a   n o n  e x ec u t i v e  
d i r ec t o r   o f   t r a n s p o r t   f o r   lo n d o n   l i m i t ed    d u b l i n 
a i r p o r t   a n d   c r os s r a i l   l i m i t ed      h e   w a s   a l s o   a   d i r ec t o r    
o f   b a n k   o f   i r e la n d   p l c   f r o m   m a y   2 0 0 4   u n t i l   j u l y   2 0 0 6    
3 peter long
chief executive age 58
p e t e r   lo n g   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   o n 
2 8   j u n e   2 0 0 7   a s   c h i e f   e x ec u t i v e      i n   n o v e m b e r   1 9 96   h e 
w a s   a p p o i n t ed   g r o u p   m a n a g i n g   d i r ec t o r   o f   f i r s t   c h o i c e 
h o l i da y s   p l c   a n d   b ec a m e   c h i e f   e x ec u t i v e   i n   s e p t e m b e r  
1 9 9 9      p r i o r   t o   j o i n i n g   f i r s t   c h o i c e    h e   w a s   c h i e f 
e x ec u t i v e   o f   su n w o r l d   h o l i da y s 
f r o m   f e b r u a r y   2 0 0 1   t o   j u n e   2 0 0 5   p e t e r   w a s   a   n o n 
e x e c u ti v e   d i r e c t o r   o f   r a c   p l c    a n d   f r o m   a p r i l   2 0 0 6   
t o   j u l y   2 0 0 9   h e   w a s   a   n o n  e x e c u ti v e   d i r e c t o r   o f  
d e b e n h a m s   p l c      p e t e r   w a s   a p p o i n t e d   a s   a   n o n e x e c u t i v e 
d i r e c t o r   o f   r e n t o k i l   i n i ti a l   p l c   i n   2 0 0 5   a n d   i s   c u r r e n t l y   t h e  
s e n i o r   i n d e p e n d e n t   n o n  e x e c u t i v e   d i r e c t o r    
4 paul bowtell
chief financial officer age 42
p a u l   b o w t e l l   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   o n 
2 8   j u n e   2 0 0 7   a s   c h i e f   f i n a n c i a l   o f fic e r      h e   w a s  
a p p o i n t ed   t o   t h e   b o a r d   o f   f i r s t   c h o i c e   h o l i da y s   p l c    
i n   s e p t e m b e r   2 0 0 4   a s   g r o u p   f i n a n c e   d i r ec t o r   a n d    
w a s   p r e v i o u s l y   t h e   f i n a n c e   d i r ec t o r   o f   br i t i s h   g a s    
a   s u b s i d i a r y   o f   c e n t r i c a   p l c    w h e r e   h e   h a d   b ee n   s i n c e 
j a n ua r y   2 0 0 2      p r i o r   t o   t h a t    h e   w a s   w i t h   w   h   s m i t h   p l c 
w h e r e   h e   h e l d   a   n u m b e r   o f   c o r p o r a t e   c e n t r e   r o l e s  
b e f o r e   b ec o m i n g   t h e   f i n a n c e   d i r ec t o r   o f   t h e   u k   r e t a i l 
b u s i n e ss      h e   i s   a n   a ss o c i a t e   o f   t h e   i n s t i t u t e   o f   c h a r t e r e d 
a c c o u n t a n t s   i n   e n g la n d   a n d   w a l e s      i n   n o v e m b e r   2 0 0 7  
p a u l   w a s   a p p o i n t ed   a s   a   n o n  e x ec u t i v e   d i r ec t o r   o f 
s t h r ee   p l c      p a u l   w i l l   b e   r e s i g n i n g   f r o m   t h e   t u i   t r a v e l  
p l c   b o a r d   w i t h   e f f ec t   f r o m   3 1   d ec e m b e r   2 0 1 0  
5 william waggott
commercial director age 47
w i l l i a m   w a g g o t t   j o i n ed   t h e   b o a r d   o f   t u i   t r a v e l   p l c   
o n   2 8   j u n e   2 0 0 7   a s   c o m m e r c i a l   d i r ec t o r      h e   w a s 
a p p o i n t ed   c h i e f   f i n a n c i a l   o f fic e r   o f   t u i   t r a v e l   p l c   
o n   3 0   n o v e m b e r   2 0 1 0       w i l l   s p e n t   t h e   e a r l y   p a r t   o f   
h i s   c a r ee r   w i t h   c o o p e r s      l y b r a n d   a n d   c o u r t a u l ds 
t e x t i l e s   p l c    w h e r e   h e   p e r f o r m ed   v a r i o u s   s e n i o r   g r o u p 
fi n a n c e   a n d   d i v i s i o n a l   d i r ec t o r   r o l e s      h e   e n t e r ed   t h e 
l e i s u r e   t r a v e l   i n d u s t r y   w h e n   h e   j o i n ed   a i r t o u r s   p l c   a n d  
h e l d   a   n u m b e r   o f   p os i t i o n s   i n c l u d i n g   u k   l e i s u r e   g r o u p  wwwtuitravelplccom
44  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
t h e   c o m p a n y   h ad   n o   t r ad e   c r e d i t o r s   a t   3 0   s e pt e m b e r   2 0 1 0    2 0 0 9  
£ nil    a n d   c o n s e q u e n t l y   c r e d i t o r   d a y s   h a v e   n o t   b e e n   p r e s e n t e d       
w h e r e   t h e   c o m p a n y   i s   t h e   r e c ipi e n t   o f   g o o d s   o r   s e r v i c e s    p a y m e n t   o f 
s up p li e r s   i s   c o n d u c t e d   b y   o n e   o f   t h e   g r o up   c o m p ani e s   in   ac c o r d a n c e  
w i t h   t h e   p o li c y   s e t   o u t   a b o v e 
charitable giving and political donations
w e   h a v e   d e v e l o p e d   a   g r o up  w i d e   c h ar i t y   p o li c y   an d   g ui d elin e s   t o 
e n s ur e   t r a n s p ar e n c y   in   o ur   c h ar i t ab l e   ac t i v i t i e s   a n d   t o   e n a b l e   u s   t o  
r e p o r t   a nn u a ll y   o n   t u i   t r a v e l ’ s   c h ar i t ab l e   g i v in g      d ur in g   t h e   y ea r     
t h e   g r o up   m ad e   c h ar i t ab l e   d o n a t i o n s   o f   £ 4 7 5  2 7 7    2 0 0 9    £ 2 9 0  7 9 9      
f o r   f ur t h e r   d e t a il s   s e e   p a g e   3 0      t h e   g r o up   m ad e   n o   p o li t i c a l  
c o n t r ib u t i o n s   d ur in g   t h e   y ea r    2 0 0 9    £ nil  
directors’ and officers’ insurance
t h e   c o m p a n y   h a s   p urc h a s e d    a n d   m a in t a in e d   t hr o u g h ou t   t h e   y ea r   
d ir e c t o r s ’   an d   o f fi c e r s ’   l i abili t y   in s ur an c e   a n d   t h e   l e v e l   o f   c o v e r   i s 
r e g ul ar l y   r e v i e w e d 
significant agreements – change of control
t h e   c o m p a ni e s   a c t   2 0 0 6   r e q uir e s   u s   t o   d i s c l o s e   a n y   s i g ni fi c a n t  
a g r e e m e n t s   t h at   t a k e   e f f e c t    a l t e r   o r   t e r min at e   o n   a   c h an g e   o f   c o n t r o l 
o f   t h e   c o m p an y 
relationship agreement with tui ag
t h e   r e l at i o n s hip   a g r e e m e n t   b e t w e e n   t u i   a g   a n d   t u i   t r a v e l    d a t e d  
2 9   j un e   2 0 0 7    in c lu d e s   t h e   p r in c ip l e   t h at   t u i   t r a v e l   w ill   o p e r at e 
in d e p e n d e n t l y   o f   t u i   a g   a n d   r e c o r d s   t h e   un d e r s t a n d in g   b e t w e e n   t u i 
a g   a n d   t u i   t r a v e l   r e g a r d in g   t h e   r e l a t i o n s hip   b e t w e e n   t h e m   a n d   t h e 
g o v e r n a n c e   o f   t u i   t r a v e l      t h e   r e l at i o n s hip   a g r e e m e n t   w ill   r e m a in   in  
f o rc e   un t il   e i t h e r   t h e   s h a r e s   in   t u i   t r a v e l   a r e   n o   l o n g e r   admi t t e d   t o 
t r ad in g   o n   t h e   l o n d o n   s t o c k   e x c h a n g e    o r   t u i   a g   h a s   l e s s   t h a n   1 0  
o f   t h e   r i g h t s   t o   v o t e   at   g e n e r a l   m e e t in g s      in   ad d i t i o n    in   t h e   e v e n t   t h at  
a n o t h e r   p ar t y   ac q uir e s   c o n t r o l   o f   t u i   a g   d ur in g   t h e   t e r m   o f   t h e 
r e l at i o n s hip   a g r e e m e n t    t u i   a g   w ill   l o s e   c e r t a in   r i g h t s   un d e r   t h e 
r e l at i o n s hip   a g r e e m e n t   in c lu d in g   i t s   r i g h t s   in   r e s p e c t   o f   t h e  
c o m p o s i t i o n   o f   t h e   b o ar d 
t h e   r e l at i o n s hip   a g r e e m e n t   c o n t a in s   r e s t r i c t i o n s   o n   t h e   ac q ui s i t i o n 
b y   t u i   a g   o f   ad d i t i o n a l   s h a r e s   in   t u i   t r a v e l   w hi c h   r e s ul t   in   t h e 
in c r ea s e   o f   i t s   s h a r e h o l d in g   t o   m o r e   t h a n   5 5    o f   t h e   v o t in g   r i g h t s   
o n   a   f ull y  d ilu t e d   b a s i s    s a v e   w h e r e   t u i   a g   m a k e s   a   g e n e r a l   o f f e r   t o 
ac q uir e   a ll   t u i   t r a v e l   s h a r e s   in   i s s u e       a   n um b e r   o f   b o n d s   a r e   h e l d   
o n   t u i   a g ’ s   b e h al f   a n d    i f   c o n v e r t e d   at   t h e   c o n v e r s i o n   p r i c e   s e t   o n    
t h e   l a un c h   d a t e    w o ul d   g i v e   r i s e   t o   5 2  3 0 9  4 6 3   n e w   s h a r e s      o n   a   
f ull y  d ilu t e d   b a s i s    i f   s h a r e s   h e l d   b y   a ll   b o n dh o l d e r s   w e r e   c o n v e r t e d   
t u i   a g   h ad   a   h o l d in g   o f   5 0  3 7    a s   at   3 0   s e pt e m b e r   2 0 1 0      a s   a 
p e rc e n t a g e   o f   s h a r e s   in   i s s u e    t u i   a g ’ s   h o l d in g   a s   at   3 0   s e pt e m b e r  
2 0 1 0   w a s   54  9 2  
t u i   a g   h a s   a n t i  d ilu t i o n   r i g h t s   in   r e s p e c t   o f   f ur t h e r   i s s u e s   o f   s h a r e s    
in   t u i   t r a v e l   o t h e r   t h a n   o n   a   p r e  e m pt i v e   b a s i s      t u i   t r a v e l   h a s   a l s o  
a g r e e d   t h at   c e r t a in   m a t t e r s   w ill   r e q uir e   t h e   p r i o r   a p p r o v a l   o f   8 0    
o f   t h e   d ir e c t o r s   p r e s e n t   at   t h e   m e e t in g   o f   t h e   b o ar d   at   w hi c h   s u c h  
m a t t e r   i s   c o n s i d er e d    in c lu d in g   m a t e r i al   c h an g e s   t o   t h e   b u s in e s s    
o f   an y   g r o up   c o m p an y    ac q ui s i t i o n s   a n d   d i s p o s a l s   o f   a   v a lu e   w hi c h  
e x c e e d s   £ 1 0 m    t h e   e n t r y   in t o    v a r i at i o n   o r   r e d e m p t i o n   p r i o r   t o   
t h e ir   d u e   d a t e   o f   a n y   b o r r o w in g   f ac ili t i e s   a n d   t h e   a p p r o v a l   o f   t h e  
a nn u a l   b u d g e t 
£770m bank revolving credit facility agreement
a n   a g r e e m e n t   d a t e d   2 9   j un e   2 0 0 7   b e t w e e n   a   n um b e r   o f   r e l a t i o n s hip  
b ank s   a n d   t h e   c o m p a n y   r e l a t in g   t o   a   £ 7 7 0 m   b ank   r e v o l v in g   c r e d i t 
f ac ili t y   c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p an y    c o n t a in s   t e r m s   w hi c h    
g i v e   t h e   l e n d in g   b ank s   t h e   r i g h t   t o   c an c e l   a ll   c o m mi t m e n t s   t o   t h e  
t h e   d ir e c t o r s   s ub mi t   t h e ir   r e p o r t   t o   t h e   m e m b e r s   o f   t u i   t r a v e l   p l c 
 t h e   c o m p a n y    f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0 
principal activity
t h e   p r in c ip al   ac t i v i t y   o f   t h e   t u i   t r a v e l   p l c   g r o up   o f   c o m p ani e s    t h e 
g r o up    i s   t h at   o f   an   in t e r n a t i o n al   l e i s ur e   t r a v e l   b u s in e s s      i t   p r o v i d e s    
a   b r o ad   a n d   d i v e r s e   r a n g e   o f   l e i s ur e   t r a v e l   e x p e r i e n c e s   t o   m o r e    
t h a n   3 0   milli o n   c u s t o m e r s   in   2 7   k e y   s o urc e   m a r k e t s      f o r   f ur t h e r 
in f o r m a t i o n   s e e   t u i   t r a v e l   o v e r v i e w   p a g e   2 
annual general meeting
t h e   a nn u a l   g e n e r al   m e e t in g    a g m    w ill   b e   h e l d   o n   t h ur s d a y  
3   f e b r u ar y   2 0 1 1   at   1 0  3 0 a m   a t   t h e   o f fi c e s   o f   h e r b e r t   s mi t h    e x c h an g e  
h o u s e    p r im r o s e   s t r e e t    l o n d o n   e c 2 a   2 h s      a n   e x p l an at i o n   o f   t h e 
b u s in e s s   t o   b e   t r a n s ac t e d   at   t h e   a g m   h a s   b e e n   c irc ul at e d   t o 
s h a r e h o l d e r s   a n d   c an   b e   f o un d   o n   t h e   w e b s i t e   w w w  t ui t r a v e lp l c  c o m 
business performance
a   d e s c r ipt i o n   o f   t h e   b u s in e s s   p e r f o r m an c e   f o r   t h e   y ea r   e n d e d 
3 0   s e pt e m b e r   2 0 1 0    p r e p a r e d   in   ac c o r d a n c e   w i t h   t h e   c o m p a ni e s   
a c t   2 0 0 6    i s   s e t   o u t   o n   p a g e s   3 2   t o   4 1   a n d   f o r m s   p ar t   o f   t h e   
d ir e c t o r s ’   r e p o r t     
results and dividends
t h e   g r o up   l o s s   b e f o r e   t a x a t i o n   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r  
2 0 1 0   w a s   £ 3 6 m    2 0 0 9   r e s t at e d    £ 9 4 m       t h e   d ir e c t o r s   r e c o m m e n d  
a   fi n a l   d i v i d e n d   o f   7  8 p   p e r   o r d in ar y   s h a r e    2 0 0 9    7  7 p     p a y ab l e   o n 
1   m a rc h   2 0 1 1   t o   h o l d e r s   o n   t h e   r e g i s t e r   at   t h e   c l o s e   o f   b u s in e s s   o n 
4   f e b r u ar y   2 0 1 1      w h e n   t a k e n   w i t h   t h e   in t e r im   d i v i d e n d   o f   3  2 p   p e r  
o r d in ar y   s h a r e   p a i d   o n   1   o c t o b e r   2 0 1 0    2 0 0 9    3  0 p     t hi s   g i v e s   a    
t o t a l   d i v i d e n d   o f   1 1  0 p    2 0 0 9    1 0  7 p    r e l a t in g   t o   t h e   y ea r   e n d e d  
3 0   s e pt e m b e r   2 0 1 0    
t h e   r e s ul t s   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9   h a v e   b e e n  
r e s t at e d    s e e   n o t e   1   o f   t h e   fi n a n c i a l   s t at e m e n t s 
corporate governance report
t h e   c o r p o r a t e   g o v e r n a n c e   r e p o r t   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r  
2 0 1 0    p r e p a r e d   in   ac c o r d a n c e   w i t h   r ul e   7  2   o f   t h e   f s a ’ s   d i s c l o s ur e   a n d 
t r a n s p a r e n c y   r ul e s    i s   s e t   o u t   o n   p a g e s   4 8   t o   5 2   a n d   f o r m s   p ar t   o f 
t h e   d ir e c t o r s ’   r e p o r t 
suppliers
t u i   t r a v e l   b e n e fi t s   f r o m   b o t h   i t s   s c a l e   an d   ap p li c at i o n   o f   ‘ b e s t   in 
c l a s s ’   p urc h a s in g      o ur   p r in c ip al   s up p li e r s   a r e   h o t e l   o w n e r s   a n d  
o p e r at o r s   an d   a irc r af t   s up p li e r s      a m o n g s t   o t h e r s    o ur   k e y   s t r at e g i c  
r e l a t i o n s hip s   a r e   w i t h   h o t e l   c h a in s   s u c h   a s   r i u    f i e s t a    a t l a n t i c a   a n d 
a irc r af t   p r o v i d e r s   s u c h   a s   b o e in g      e ac h   s o urc e   m a r k e t   h a s   l o c al   a n d  
o v e r s ea s   t ea m s   t o   e n g a g e   in   e f f e c t i v e   p r o c ur e m e n t   s t r at e g i e s   t o  
d e li v e r   o pt imum   b e n e fi t s   t o   t u i   t r a v e l      c o  o p e r a t i v e   w o r k in g   i s 
f un d am e n t a l   t o   o ur   r e l a t i o n s hip s   w i t h   k e y   s up p li e r s   t o   e n s ur e   t h at   
t h e   hi g h e s t   s t a n d ar d s   in   t e r m s   o f   h ea l t h   a n d   s af e t y   an d   q u ali t y   ar e 
m a in t a in e d      s up p li e r s   f a llin g   b e l o w   t h e s e   e x p e c t at i o n s   w ill   b e 
r e m o v e d   f r o m   o ur   p r og r a m m e s 
t h e   o p e r at in g   uni t s   w i t hin   t h e   g r o up   a r e   r e s p o n s ib l e   f o r   a g r e e in g    
t h e   t e r m s   an d   c o n d i t i o n s   un d e r   w hi c h   b u s in e s s   t r a n s ac t i o n s   w i t h    
t h e ir   s up p li e r s   a r e   c o n d u c t e d      d u e   t o   t h e   n at ur e   o f   t h e   g r o up ’ s 
o p e r at i o n s    a n d   in   c o m m o n   w i t h   t h e   in d u s t r y   a s   a   w h o l e    p a y m e n t s 
a r e   o f t e n   m ad e   in   ad v a n c e   f o r   t h e   p r o v i s i o n   o f   g o o d s   an d   s e r v i c e s     
t h e   g r o up   d o e s   n o t   f o ll o w   a n y   c o d e   o r   s t at e m e n t   o n   p a y m e n t 
p r ac t i c e   b u t   i t   i s   g r o up   p o li c y   t h at   p a y m e n t s   t o   s up p li e r s    w h e t h e r   in 
ad v a n c e   o r   a f t e r   t h e   p r o v i s i o n   o f   t h e   g o o d s   o r   s e r v i c e s    a r e   m ad e   o n  
t h e   b a s i s   o f   t h e   t e r m s   t h at   h a v e   b e e n   a g r e e d   w i t h   t h e m 
go v ernanc e
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t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  45
a m oun t    t og e t h e r   w i t h   ac c r u e d   an d   unp a i d   in t e r e s t   up   t o   t h e   d a t e   
o f   r e d e m p t i o n    i f   a   c h an g e   o f   c o n t r o l   o c c ur s      f o r   t h e   p ur p o s e   o f   t h e 
c o n v e r t ib l e   b o n d s   a   c h an g e   o f   c o n t r o l   o c c ur s   i f 
•     f o l l o w i n g   a   t a k e o v e r   o f f e r   t o   a c q u i r e   a l l   o r   a   m a j o r i t y   o f   t h e   s h a r e s  
in   t h e   c o m p a n y   b e in g   d e c l a r e d   un c o n d i t i o n a l   in   all   r e s p e c t s   o r 
b e c o min g   e f f e c t i v e    t h e   o f f e r o r   a n d  o r   i t s   a s s o c i at e s   h a v e   o r   w ill  
h a v e   m o r e   t h a n   5 0    o f   t h e   v o t in g   r i g h t s   in   t h e   c o m p a n y    o r 
•     t h e   f r e e   f l o at   o f   t h e   c o m p a n y   i s   l e s s   t h a n   3 0    o f   t h e   i s s u e d 
o r d in ar y   s h a r e s   f o r   at   l ea s t   f i v e   c o n s e c u t i v e   d ealin g   d a y s    w h e r e  
t h e   f r e e   f l o at   i s    a    a ll   o u t s t a n d in g   o r d in ar y   s h a r e s   o f   t h e  
c o m p a n y   l e s s   t h o s e   h e l d   b y   o r   o n   b e h al f   o f   t u i   a g    i t s   a s s o c i at e s  
a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   a n d    b    t h e   o r d in ar y  
s h a r e s   un d e r l y in g   t h e   o u t s t a n d in g   s e c ur e d   e x c h an g ea b l e   b o n d s 
d u e   2 0 1 3   i s s u e d   b y   n e r o   f in an c e   l imi t e d   o n   1 6   jan u a r y   2 0 0 8  
t u i   a g   s ub s c r ib e d    at   t h e   i s s u e   p r i c e    f o r   5 0    o f   t h e   c o n v e r t ib l e   b o n d 
o f f e r in g   t o   p r e v e n t   t h e   p o t e n t i a l   d ilu t i o n   o f   i t s   m a j o r i t y   s h a r e h o l d in g    
£100m bank revolving credit facility agreement
a n   a g r e e m e n t   d a t e d   2 1   a p r il   2 0 1 0   b e t w e e n   a   n um b e r   o f   r e l a t i o n s hip  
b ank s   a n d   t h e   c o m p a n y   r e l a t in g   t o   a   £ 1 0 0 m   b ank   r e v o l v in g   c r e d i t 
f ac ili t y   c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p an y    c o n t a in s   t e r m s   w hi c h    
g i v e   t h e   l e n d in g   b ank s   t h e   r i g h t   t o   c an c e l   a ll   c o m mi t m e n t s   t o   t h e 
c o m p a n y   an d   t o   d e c l a r e   a ll   o u t s t a n d in g   c r e d i t s   a n d   ac c r u e d   in t e r e s t 
im m e d i at e l y   d u e   a n d   p a y ab l e   i f   a   c h an g e   o f   c o n t r o l   o c c ur s      f o r   t h e 
p ur p o s e   o f   t hi s   a g r e e m e n t   a   c h an g e   o f   c o n t r o l   o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l   
o f   t h e   c o m p a n y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r  
ac q uir e   7 5    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p a n y 
£50m bank revolving credit facility agreement
a n   a g r e e m e n t   d a t e d   2 7   a p r il   2 0 1 0   b e t w e e n   a   r e l a t i o n s hip   b ank   a n d  
t h e   c o m p a n y   r e l a t in g   t o   a   £ 5 0 m   b ank   r e v o l v in g   c r e d i t   f ac ili t y 
c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p a n y    c o n t a in s   t e r m s   w hi c h   g i v e   t h e 
l e n d in g   b ank   t h e   r i g h t   t o   c an c e l   a ll   c o m mi t m e n t s   t o   t h e   c o m p a n y   a n d  
t o   d e c l a r e   a ll   o u t s t a n d in g   c r e d i t s   a n d   ac c r u e d   in t e r e s t   im m e d i at e l y 
d u e   an d   p a y ab l e   i f   a   c h an g e   o f   c o n t r o l   o c c ur s      f o r   t h e   p ur p o s e   o f   t hi s  
a g r e e m e n t   a   c h an g e   o f   c o n t r o l   o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l   
o f   t h e   c o m p a n y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r  
ac q uir e   6 0    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p a n y 
£50m bonding and letter of credit facility agreement
a n   a g r e e m e n t   d a t e d   2 7   s e pt e m b e r   2 0 1 0   b e t w e e n   a   r e l a t i o n s hip   b ank 
a n d   t h e   c o m p a n y   r e l a t in g   t o   a   £ 5 0 m   b o n d in g   an d   l e t t e r   o f   c r e d i t  
f ac ili t y   c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p an y    c o n t a in s   t e r m s   w hi c h   g i v e 
t h e   l e n d in g   b ank   t h e   r i g h t   t o   c an c e l   a ll   c o m mi t m e n t s   t o   t h e   c o m p a n y 
a n d   t o   d e c l a r e   all   o u t s t an d in g   b o n d s   o r   l e t t e r s   o f   c r e d i t   t og e t h e r   w i t h 
ac c r u e d   i s s u an c e   f e e s   im m e d i at e l y   d u e   an d   p a y ab l e   i f   a   c h an g e   o f 
c o n t r o l   o c c ur s      f o r   t h e   p ur p o s e   o f   t hi s   a g r e e m e n t   a   c h an g e   o f   c o n t r o l 
o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l   
o f   t h e   c o m p a n y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r 
ac q uir e   7 5    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p a n y 
n o   o t h e r   a g r e e m e n t s   w hi c h   t a k e   e f f e c t    a l t e r   o r   t e r min at e   up o n   
a   c h an g e   o f   c o n t r o l   o f   t h e   c o m p a n y   f o ll o w in g   a   t a k e o v e r   bi d   a r e  
c o n s i d er e d   t o   b e   s i g ni fi c a n t   in   t e r m s   o f   t h e ir   p o t e n t i a l   im p ac t   o n   
t h e   b u s in e s s   o f   t h e   g r o up   a s   a   w h o l e 
c o m p a n y   a n d   t o   d e c l a r e   a ll   o u t s t an d in g   c r e d i t s   a n d   ac c r u e d   in t e r e s t  
im m e d i at e l y   d u e   a n d   p a y ab l e   i f   a   c h an g e   o f   c o n t r o l   o c c ur s      f o r   t h e 
p ur p o s e   o f   t hi s   a g r e e m e n t   a   c h an g e   o f   c o n t r o l   o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l    
o f   t h e   c o m p a n y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r 
ac q uir e   7 5    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p an y 
£140m bank revolving credit facility agreement
a n   a g r e e m e n t   d a t e d   2 9   s e pt e m b e r   2 0 0 9   b e t w e e n   a   n um b e r   o f 
r e l a t i o n s hip   b ank s   a n d   t h e   c o m p an y   r e l a t in g   t o   a   £ 1 4 0 m   b ank 
r e v o l v in g   c r e d i t   f ac ili t y   c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p a n y    c o n t a in s  
t e r m s   w hi c h   g i v e   t h e   l e n d in g   b ank s   t h e   r i g h t   t o   c an c e l   a ll 
c o m mi t m e n t s   t o   t h e   c o m p an y   a n d   t o   d e c l a r e   all   o u t s t an d in g   c r e d i t s  
an d   ac c r u e d   in t e r e s t   im m e d i at e l y   d u e   a n d   p a y ab l e   i f   a   c h an g e   o f 
c o n t r o l   o c c ur s      f o r   t h e   p ur p o s e   o f   t hi s   a g r e e m e n t   a   c h an g e   o f   c o n t r o l 
o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l   o f 
t h e   c o m p an y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r 
ac q uir e   7 5    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p an y 
£40m bonding and letter of credit facility agreement
a n   a g r e e m e n t   d a t e d   2 9   s e pt e m b e r   2 0 0 9   b e t w e e n   a   r e l a t i o n s hip   b ank 
an d   t h e   c o m p a n y   r e l a t in g   t o   a   £ 4 0 m   b o n d in g   a n d   l e t t e r   o f   c r e d i t  
f ac ili t y   c ur r e n t l y   p r o v i d e d   t o   t h e   c o m p a n y    c o n t a in s   t e r m s   w hi c h   g i v e  
t h e   l e n d in g   b ank   t h e   r i g h t   t o   c an c e l   a ll   c o m mi t m e n t s   t o   t h e   c o m p an y  
an d   t o   d e c l a r e   a ll   o u t s t a n d in g   b o n d s   o r   l e t t e r s   o f   c r e d i t   t og e t h e r   w i t h  
ac c r u e d   i s s u an c e   f e e s   im m e d i at e l y   d u e   a n d   p a y ab l e   i f   a   c h an g e   o f 
c o n t r o l   o c c ur s      f o r   t h e   p ur p o s e   o f   t hi s   a g r e e m e n t   a   c h an g e   o f   c o n t r o l 
o c c ur s   i f 
•     a n y   p e r s o n   o r   g r o up   o f   p e r s o n s   ac t in g   in   c o n c e r t   g a in s   c o n t r o l   o f 
t h e   c o m p an y    o r
•     t u i   a g   a n d   a n y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   ac q uir e s   o r 
ac q uir e   6 0    o r   m o r e   o f   t h e   v o t in g   s h a r e s   in   t h e   c o m p an y 
£350m 60 convertible bonds
in   s e pt e m b e r   2 0 0 9    t h e   c o m p an y   i s s u e d   £ 3 5 0 m   o f   6  0    c o n v e r t ib l e 
b o n d s   w i t h   a   c o n v e r s i o n   p r i c e   s e t   at   3 4 9  3 0 p   p e r   s h a r e      t h e 
s e t t l e m e n t   t o o k   p l ac e   o n   5   o c t o b e r   2 0 0 9      t h e   c o n v e r t ib l e   b o n d s  
c o n t a in   t e r m s   w hi c h   g i v e   t h e   b o n dh o l d e r s   t h e   r i g h t   t o   r e d e e m   t h e 
b o n d s   at   t h e ir   p r in c ip al   a m oun t    t og e t h e r   w i t h   ac c r u e d   a n d   unp a i d 
in t e r e s t   up   t o   t h e   d a t e   o f   r e d e m p t i o n    i f   a   c h an g e   o f   c o n t r o l   o c c ur s    
f o r   t h e   p u r p os e   o f   t h e   c o n v e r t i b l e   b o n d s   a   c h a n g e   o f   c o n t r o l   o c c u r s   i f 
•   f o ll o w in g   a   t a k e o v e r   o f f e r   t o   ac q uir e   a ll   o r   a   m a j o r i t y   o f   t h e 
s h a r e s   in   t h e   c o m p an y   b e in g   d e c l a r e d   un c o n d i t i o n a l   in   all 
r e s p e c t s   o r   b e c o min g   e f f e c t i v e    t h e   o f f e r o r   a n d  o r   i t s   a s s o c i at e s  
h a v e   o r   w ill   h a v e   m o r e   t h a n   5 0    o f   t h e   v o t in g   r i g h t s   in   t h e  
c o m p an y    o r  
•     t h e   f r e e   f l o at   o f   t h e   c o m p a n y   i s   l e s s   t h a n   3 0    o f   t h e   i s s u e d 
o r d in ar y   s h a r e s   f o r   at   l ea s t   f i v e   c o n s e c u t i v e   d ealin g   d a y s    w h e r e 
t h e   f r e e   f l o at   i s    a    a ll   o u t s t an d in g   o r d in ar y   s h a r e s   o f   t h e 
c o m p an y   l e s s   t h o s e   h e l d   b y   o r   o n   b e h al f   o f   t u i   a g    i t s   a s s o c i at e s 
a n d   an y   p e r s o n s   ac t in g   in   c o n c e r t   w i t h   i t   a n d    b    t h e   o r d in ar y 
s h a r e s   un d e r l y in g   t h e   o u t s t an d in g   s e c ur e d   e x c h a n g ea b l e   b o n d s  
d u e   2 0 1 3   i s s u e d   b y   n e r o   f in an c e   l imi t e d   o n   1 6   jan u a r y   2 0 0 8  
£400m 490 convertible bonds
in   a p r il   2 0 1 0    t h e   c o m p a n y   i s s u e d   £ 4 0 0 m   o f   4  9 0    c o n v e r t ib l e   b o n d s 
w i t h   a   c o n v e r s i o n   p r i c e   s e t   at   3 8 2  3 4 p   p e r   s h a r e      t h e   s e t t l e m e n t   t o o k  
p l ac e   o n   2 7   a p r il   2 0 1 0      t h e   c o n v e r t ib l e   b o n d s   c o n t a in   t e r m s   w hi c h 
g i v e   t h e   b o n dh o l d e r s   t h e   r i g h t   t o   r e d e e m   t h e   b o n d s   at   t h e ir   p r in c ip al  wwwtuitravelplccom
46  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
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directors’ report c o n t i n u e d
other information
o t h e r   in f o r m a t i o n   r e l e v an t   t o   t h e   d ir e c t o r s ’   r e p o r t   c an   b e   f o un d   in 
t h e   f o ll o w in g   s e c t i o n s   o f   t h e   a nn u a l   r e p o r t 
i n f o r m a t i o n   loca tion  in annual r eport
o u r p e o p l e   p age 24
s o c i a l r e s p o n s i b i l i t y   p age 26
s u s t a i n a b l e  d e v e l o p m e n t   p age 28
c h a r i t a b l e a n d  p o l i t i c a l d o n a t i o n s     p age 30
f u t u r e  d e v e l o p m e n t s  p age 41
b o a r d  a n d  c o m m i t t e e m e m b e r s h i p  p age 48
f i n a n c i a l  r i s k  m a n a g e m e n t     p ages  20 and  48
p o s t  b a l a n c e  s h e e t  e v e n t s  a f t e r
3 0  s e p t e m b e r  2 0 1 0   financial  st a t ements – no t e  34
s h a r e  c a p i t a l  – a u t h o r i s e d  a n d i s s u e d  financial st a t ements – no t e  23
s u b s t a n t i a l  s h a r e h o l d i n g s    p age 142
t h e   d ir e c t o r s ’   r e p o r t   w a s   a p p r o v e d   b y   a   d ul y   a u t h o r i s e d   c o m mi t t e e  
o f   t h e   b o ar d   o f   d ir e c t o r s   o n   1   d e c e m b e r   2 0 1 0   a n d   s i g n e d   o n   i t s  
b e h al f   b y   a n dr e w   jo hn    t h e   c o m p a n y   s e c r e t a r y 
b y   o r d e r   o f   t h e   b o ar d
andrew john
c o m p a n y   s e c r e t a r y 
1   d e c e m b e r   2 0 1 0 
c o m p a n y   num b e r    6 0 7 2 8 7 6
going concern 
a f t e r   m a k in g   a p p r o p r i a t e   e n q uir i e s    t h e   d ir e c t o r s   h a v e   r ea s o n ab l e  
e x p e c t at i o n   t h at   t h e   c o m p a n y   a n d   g r o up   h a v e   ad e q u at e   r e s o urc e s   
t o   c o n t in u e   o p e r at i o n s   f o r   t h e   f o r e s e ea b l e   f u t ur e      f o r   t hi s   r ea s o n  
t h e y   c o n t in u e   t o   ad o pt   t h e   g oin g   c o n c e r n   b a s i s   in   p r e p a r in g   t h e 
fi n a n c i a l   s t at e m e n t s 
a   f ur t h e r   s um m ar y   o f   f un d in g   a n d   li q ui d i t y   i s   in c lu d e d   in   n o t e   1   t o 
t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s 
contractual arrangements
t h e   g r o up   h a s   c o n t r ac t u a l   ar r an g e m e n t s   w i t h   n um e r o u s   t hir d   p ar t i e s 
in   s up p o r t   o f   i t s   b u s in e s s   ac t i v i t i e s    s e e   p a g e s   3 0   a n d   4 4      
auditors
t h e   a u d i t o r s   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   w e r e   k p m g  
a u d i t   pl c 
statement of the directors as to disclosure of 
information to auditors
t h e   d ir e c t o r s   c o n fi r m   t h at    s o   f a r   a s   t h e y   a r e   eac h   a w a r e    t h e r e   i s    
n o   r e l e v an t   a u d i t   in f o r m a t i o n   o f   w hi c h   t h e   c o m p a n y ’ s   a u d i t o r s   a r e 
un a w ar e    an d   eac h   d ir e c t o r   h a s   t a k e n   a ll   t h e   s t e p s   t h at   h e   o r   s h e  
o u g h t   t o   h a v e   t a k e n   a s   a   d ir e c t o r   t o   m a k e   him s e l f   o r   h e r s e l f   a w a r e    
o f   a n y   r e l e v an t   a u d i t   in f o r m a t i o n   a n d   t o   e s t a b li s h   t h at   t h e   c o m p a n y ’ s  
a u d i t o r s   a r e   a w a r e   o f   t h at   in f o r m a t i o n      group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  47
statement of directors’ responsibilities 
in   r e s p e c t   o f   t h e   a nn u a l   r e p o r t   a n d   t h e   f in an c i a l   s t at e m e n t s 
directors’ responsibility statement
e a c h   o f   t h e   d i r e c t o r s    t h e   n a m e s   o f   w h o m   a r e   s e t   o u t   o n   p a g e   4 3   o f    
t h i s   a n n u a l   r e p o r t    c o n fi r m s   t h a t   t o   t h e   b e s t   o f   h i s   o r   h e r   k n o w l e d g e 
•     t h e   f i n a n c i a l   s ta t e m e n t s    p r e p a r e d   i n   a c c o r d a n c e   w i t h   t h e   a p p l i c a b l e  
s e t   o f   a c c o u n t i n g   s ta n d a r d s    g i v e   a   t r u e   a n d   f a i r   v i e w   o f   t h e   a s s e t s   
l i a b i l i t i e s    f i n a n c i a l   p o s i t i o n   a n d   t h e   p r o f i t   o r   l o s s   o f   t h e   c o m p a n y  
a n d   t h e   u n d e r ta k i n g s   i n c l u d e d   i n   t h e   c o n s o l i d a t i o n   ta k e n   a s   a  
w h o l e    a n d
•     t h e   d i r e c t o r s ’   r e p o r t   i n c l u d e s   a   r e v i e w   o f   t h e   d e v e l o p m e n t   a n d  
p e r f o r m a n c e   o f   t h e   b u s i n e s s   a n d   t h e   p o s i t i o n   o f   t h e   i s s u e r   a n d    
t h e   u n d e r ta k i n g s   i n c l u d e d   i n   t h e   c o n s o l i d a t i o n   ta k e n   a s   a   w h o l e   
t o g e t h e r   w i t h   a   d e s c r i p t i o n   o f   t h e   p r i n c i p a l   r i s k s   a n d   u n c e r ta i n t i e s  
t h a t   t h e y   f a c e 
t h e   s ta t e m e n t   o f   d i r e c t o r s ’   r e s p o n s i b i l i t i e s   w a s   a p p r o v e d   b y   a   d u l y  
a u t h o r i s e d   c o m m i t t e e   o f   t h e   b o a r d   o f   d i r e c t o r s   o n   1   d e c e m b e r   2 0 1 0  
a n d   s i g n e d   o n   i t s   b e h a l f   b y   p a u l   b o w t e l l    c h i e f   f i n a n c i a l   o f fi c e r 
paul bowtell
c h i e f   f i n a n c i a l   o f fi c e r  
1   d e c e m b e r   2 0 1 0
t h e   d i r e c t o r s   a r e   r e s p o n s i b l e   f o r   p r e p a r i n g   t h e   a n n u a l   r e p o r t   a n d   t h e 
g r o u p   a n d   p a r e n t   c o m p a n y   fi n a n c i a l   s ta t e m e n t s   i n   a c c o r d a n c e   w i t h 
a p p l i c a b l e   l a w   a n d   r e g u l a t i o n s 
c o m p a n y   l a w   r e q u i r e s   t h e   d i r e c t o r s   t o   p r e p a r e   g r o u p   a n d   p a r e n t  
c o m p a n y   fi n a n c i a l   s ta t e m e n t s   f o r   e a c h   fi n a n c i a l   y e a r      u n d e r   t h a t   l a w  
t h e y   a r e   r e q u i r e d   t o   p r e p a r e   t h e   g r o u p   fi n a n c i a l   s ta t e m e n t s   i n 
a c c o r d a n c e   w i t h   i n t e r n a t i o n a l   f i n a n c i a l   r e p o r t i n g   s ta n d a r d s    i f r s     
a s   a d o p t e d   b y   t h e   e u   a n d   a p p l i c a b l e   l a w   a n d   h a v e   e l e c t e d   t o   p r e p a r e  
t h e   p a r e n t   c o m p a n y   fi n a n c i a l   s ta t e m e n t s   i n   a c c o r d a n c e   w i t h   u k  
a c c o u n t i n g   s ta n d a r d s   a n d   a p p l i c a b l e   l a w    u k   g e n e r a l l y   a c c e p t e d 
a c c o u n t i n g   p r a c t i c e  
u n d e r   c o m p a n y   l a w   t h e   d i r e c t o r s   m u s t   n o t   a p p r o v e   t h e   fi n a n c i a l 
s ta t e m e n t s   u n l e s s   t h e y   a r e   s a t i s fi e d   t h a t   t h e y   g i v e   a   t r u e   a n d   f a i r   v i e w  
o f   t h e   s ta t e   o f   a f f a i r s   o f   t h e   g r o u p   a n d   p a r e n t   c o m p a n y   a n d   o f   t h e i r  
p r o fi t   o r   l o s s   f o r   t h a t   p e r i o d      i n   p r e p a r i n g   e a c h   o f   t h e   g r o u p   a n d   p a r e n t  
c o m p a n y   fi n a n c i a l   s ta t e m e n t s    t h e   d i r e c t o r s   a r e   r e q u i r e d   t o 
•     s e l e c t   s u i ta b l e   a c c o u n t i n g   p o l i c i e s   a n d   t h e n   a p p l y   t h e m   c o n s i s t e n t l y 
•     m a k e   j u d g e m e n t s   a n d   e s t i m a t e s   t h a t   a r e   r e a s o n a b l e   a n d   p r u d e n t 
•     f o r   t h e   g r o u p   f i n a n c i a l   s ta t e m e n t s    s ta t e   w h e t h e r   t h e y   h a v e   b e e n 
p r e p a r e d   i n   a c c o r d a n c e   w i t h   i f r s s   a s   a d o p t e d   b y   t h e   e u 
•     f o r   t h e   p a r e n t   c o m p a n y   f i n a n c i a l   s ta t e m e n t s    s ta t e   w h e t h e r  
a p p l i c a b l e   u k   a c c o u n t i n g   s ta n d a r d s   h a v e   b e e n   f o l l o w e d    s u b j e c t   
t o   a n y   m a t e r i a l   d e p a r t u r e s   d i s c l o s e d   a n d   e x p l a i n e d   i n   t h e   p a r e n t  
c o m p a n y   f i n a n c i a l   s ta t e m e n t s 
•     p r e p a r e   t h e   f i n a n c i a l   s ta t e m e n t s   o n   t h e   g o i n g   c o n c e r n   b a s i s   u n l e s s  
i t   i s   i n a p p r o p r i a t e   t o   p r e s u m e   t h a t   t h e   g r o u p   a n d   t h e   p a r e n t  
c o m p a n y   w i l l   c o n t i n u e   i n   b u s i n e s s 
t h e   d i r e c t o r s   a r e   r e s p o n s i b l e   f o r   k e e p i n g   a d e q u a t e   a c c o u n t i n g   r e c o r d s  
t h a t   a r e   s u f fi c i e n t   t o   s h o w   a n d   e x p l a i n   t h e   p a r e n t   c o m p a n y ’ s  
t r a n s a c t i o n s   a n d   d i s c l o s e   w i t h   r e a s o n a b l e   a c c u r a c y   a t   a n y   t i m e   t h e  
fi n a n c i a l   p o s i t i o n   o f   t h e   p a r e n t   c o m p a n y   a n d   e n a b l e   t h e m   t o   e n s u r e  
t h a t   i t s   fi n a n c i a l   s ta t e m e n t s   c o m p l y   w i t h   t h e   c o m p a n i e s   a c t   2 0 0 6       
t h e y   h a v e   g e n e r a l   r e s p o n s i b i l i t y   f o r   ta k i n g   s u c h   s t e p s   a s   a r e   r e a s o n a b l y  
o p e n   t o   t h e m   t o   s a f e g u a r d   t h e   a s s e t s   o f   t h e   g r o u p   a n d   t o   p r e v e n t   a n d 
d e t e c t   f r a u d   a n d   o t h e r   i r r e g u l a r i t i e s 
u n d e r   a p p l i c a b l e   l a w   a n d   r e g u l a t i o n s    t h e   d i r e c t o r s   a r e   a l s o   r e s p o n s i b l e  
f o r   p r e p a r i n g   a   d i r e c t o r s ’   r e p o r t    d i r e c t o r s ’   r e m u n e r a t i o n   r e p o r t   a n d  
c o r p o r a t e   g o v e r n a n c e   s ta t e m e n t   t h a t   c o m p l i e s   w i t h   t h a t   l a w   a n d   
t h o s e   r e g u l a t i o n s 
t h e   d i r e c t o r s   a r e   r e s p o n s i b l e   f o r   t h e   m a i n t e n a n c e   a n d   i n t e g r i t y   o f   t h e 
c o r p o r a t e   a n d   fi n a n c i a l   i n f o r m a t i o n   i n c l u d e d   o n   t h e   c o m p a n y ’ s   w e b s i t e     
l e g i s l a t i o n   i n   t h e   u k   g o v e r n i n g   t h e   p r e p a r a t i o n   a n d   d i s s e m i n a t i o n   o f  
fi n a n c i a l   s ta t e m e n t s   m a y   d i f f e r   f r o m   l e g i s l a t i o n   i n   o t h e r   j u r i s d i c t i o n s  wwwtuitravelplccom
48  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
board proceduresresponsibilities
t h e   b o a r d   m e e t s   r e g u l a r l y    i n c l u d i n g   a w a y   da y s    t o   r e v i e w   t h e   s t r a t e g y 
o f   t h e   g r o up      t h e   s c h e d ul e   o f   m a t t e r s   s p e c i fi c a ll y   r e s e r v e d   t o   i t   f o r  
d e c i s i o n   in c lu d e    d e t e r minin g   t h e   s t r at e g y   a n d   c o n t r o l   o f   t h e   g r o up  
a m e n dm e n t s   t o   t h e   s t r u c t ur e   a n d   c api t a l   o f   t h e   g r o up    ap p r o v a l   o f 
fi n a n c i a l   r e p o r t in g   a n d   c o n t r o l s    o v e r s i g h t   o f   t h e   g r o up ’ s   in t e r n a l  
c o n t r o l s    a p p r o v a l   o f   c api t a l   an d   r e v e n u e   e x p e n d i t ur e   o f   a   s i g ni fi c a n t  
s i z e    ac q ui s i t i o n s    d i s p o s a l s   a n d   s h a r e   d ea lin g s    b o ar d   m e m b e r s hip 
a n d   a p p oin t m e n t s    a p p r o v a l   o f   r e mun e r a t i o n   o f   d ir e c t o r s   an d   c e r t a in 
s e ni o r   m a n a g e m e n t    c o r p o r at e   g o v e r n a n c e   m a t t e r s    a n d   a p p r o v a l   o f  
g r o up   p o li c i e s   an d   r i s k   m a n a g e m e n t   s t r at e g i e s     
t h e   d i v i s i o n   o f   r e s p o n s ibili t i e s   b e t w e e n   t h e   c h a ir m an   a n d   c hi e f  
e x e c u t i v e   i s   c l ea r l y   e s t a b li s h e d    h a s   b e e n   a g r e e d   b y   t h e   b o ar d   a n d    
i s   r e v i e w e d   b y   t h e   c o m p a n y   s e c r e t a r y   o n   a   r e g ul ar   b a s i s 
a ll   d ir e c t o r s   h a v e   ac c e s s   t o   t h e   ad v i c e   a n d   s e r v i c e s   o f   t h e   c o m p a n y 
s e c r e t a r y   a n d   a ll   d ir e c t o r s   c an   t a k e   in d e p e n d e n t   p r o f e s s i o n al   ad v i c e  
i f   n e c e s s a r y    at   t h e   c o m p a n y ’ s   e x p e n s e      n o   s u c h   ad v i c e   w a s   s o u g h t  
b y   a n y   d ir e c t o r   d ur in g   t h e   y ea r     
t h e   c o m p a n y   s e c r e t a r y   i s   r e s p o n s ib l e   f o r   e n s ur in g   b o ar d   p r o c e d ur e s 
a r e   f o ll o w e d   in c lu d in g   t h e   f o r m a l   min u t in g   o f   a n y   unr e s o l v e d   c o n c e r n s 
t h at   a n y   d ir e c t o r   m a y   h a v e   in   c o nn e c t i o n   w i t h   t h e   o p e r at i o n   o f   t h e 
c o m p a n y      d ur in g   t h e   y ea r    t h e r e   w e r e   n o   s u c h   unr e s o l v e d   i s s u e s 
t h e   t e r m s   o f   r e f e r e n c e   f o r   t h e   b o ar d   a n d   i t s   c o m mi t t e e s   a r e  
a v a il ab l e   f o r   in s p e c t i o n   o n   t h e   g r o up ’ s   w e b s i t e   a n d   w ill   b e   a v a il ab l e    
at   t h e   a g m 
directors’ conflicts of interests 
un d e r   t h e   c o m p ani e s   a c t   2 0 0 6    t h e   d ir e c t o r s   h a v e   a   s t at u t o r y   d u t y  
t o   a v oi d   a   s i t u at i o n   w h e r e   t h e y   h a v e    o r   c o ul d   h a v e    a   d ir e c t   o r   in d ir e c t  
in t e r e s t   t h at   c o n fl i c t s    o r   p o s s ib l y   m a y   c o n fl i c t    w i t h   t h e   in t e r e s t s   o f  
t h e   c o m p a n y      d ir e c t o r s   o f   p ub li c   c o m p ani e s   m a y   a u t h o r i s e   c o n fl i c t s  
a n d   p o t e n t i a l   c o n fl i c t s   w h e r e   a p p r o p r i a t e    i f   t h e   ar t i c l e s   o f   a s s o c i at i o n 
c o n t a in   a   p r o v i s i o n   t o   t hi s   e f f e c t     
t h e   c o m p a n y ’ s   a r t i c l e s   o f   a s s o c i at i o n   p e r mi t   t h e   b o ar d   t o   a u t h o r i s e  
ac t u al   o r   p o t e n t i a l   c o n fl i c t s   o f   in t e r e s t      t h e   c o m p a n y   h a s   e s t a b li s h e d  
f o r m a l   p r o c e d ur e s   f o r   t h e   d i s c l o s ur e   a n d   r e v i e w   o f   a n y   c o n fl i c t s    o r 
p o t e n t i a l   c o n fl i c t s    o f   in t e r e s t   w hi c h   t h e   d ir e c t o r s   m a y   h a v e   a n d   f o r  
t h e   a u t h o r i s a t i o n   o f   s u c h   c o n fl i c t   m a t t e r s   b y   t h e   b o ar d      in   d e c i d in g 
w h e t h e r   t o   a u t h o r i s e   a   c o n fl i c t   o r   p o t e n t i a l   c o n fl i c t   t h e   d ir e c t o r s   mu s t  
h a v e   r e g a r d   t o   t h e ir   g e n e r a l   d u t i e s   un d e r   t h e   c o m p a ni e s   a c t   2 0 0 6     
t h e   a u t h o r i s a t i o n   o f   a n y   c o n fl i c t   m a t t e r    a n d   t h e   t e r m s   o f  
a u t h o r i s a t i o n    m a y   b e   r e v i e w e d   at   a n y   t im e   a n d   w ill   b e   r e v i e w e d  
f o r m a ll y   b y   t h e   b o ar d   o n   a n   a nn u a l   b a s i s      t h e   b o ar d   b e li e v e s   t h at  
t h e   p r o c e d ur e s   e s t a b li s h e d   t o   d eal   w i t h   c o n fl i c t s   o f   in t e r e s t   a r e 
o p e r at in g   e f f e c t i v e l y 
board effectiveness and individual performance of directors 
a   r e v i s e d   p r o c e s s   f o r   t h e   a s s e s s m e n t   o f   t h e   p e r f o r m a n c e   o f   t h e  
b o ar d   a n d   o f   in d i v i d u a l   d ir e c t o r s   w a s   im p l e m e n t e d   in   m a y   2 0 1 0       
t h e   b o ar d ’ s   e f f e c t i v e n e s s   w a s   a s s e s s e d   b y   m ea n s   o f   a   d e t a il e d  
q u e s t i o nn a ir e   w hi c h   w a s   d e s i g n e d   b y   t h e   c o m p a n y   s e c r e t a r y   a n d 
c o m p l e t e d   b y   eac h   d ir e c t o r      t h e   q u e s t i o nn a ir e   c o v e r e d   3 4   a r ea s  
in c lu d in g   t h e   r o l e   o f   t h e   b o ar d    s t r at e g y    c o m p o s i t i o n    c o n d u c t    
o f   b u s in e s s    m a n a g e m e n t   s u c c e s s i o n    c o r p o r a t e   g o v e r n a n c e   a n d   
r i s k   m a n a g e m e n t 
t h e   r e s ul t s   w e r e   p r e s e n t e d   t o   t h e   b o ar d   in   j ul y   2 0 1 0   w h e r e   s p e c i fi c  
a r ea s   s u c h   a s   s t r at e g y    b o ar d   s k ill s   a n d   e x p e r i e n c e    d i s t r ib u t i o n   o f  
b o ar d   p ap e r s   a n d   b ac k g r o un d   in f o r m a t i o n    e x p o s ur e   t o   t h e   b o ar d    
o f   t h e   c o m p an y ’ s   s e ni o r   m a n a g e m e n t   a n d   e n v ir o nm e n t a l   i s s u e s   
w e r e   d e b at e d 
the board 
t h e   c o m p a n y   i s   c o n t r o ll e d   t hr o u g h   i t s   b o ar d   o f   d ir e c t o r s   –   
t h e   d ir e c t o r s   at   t h e   d a t e   o f   t hi s   r e p o r t   ar e 
d i r e c t o r ’ s  n a m e   title
h o r s t b a i e r   nonex ecutiv e  dir ect or
d r  v o l ke r b ö t t c h e r  managing  dir ect or   centr al eur ope
p a u l  b o w t e l l    chief   financial offic er
t o n y  c a m p b e l l   nonex ecutiv e  dir ect or
c l a r e  c h a p m a n   nonex ecutiv e  dir ect or
b i l l  d a l t o n   nonex ecutiv e  dir ect or
r a i n e r  f e u e r h a ke   nonex ecutiv e  dir ect or
d r  m i c h a e l  f r e n z e l  nonex ecutiv e  chairman
j e r e m y  h i c k s   nonex ecutiv e  dir ect or
s i r m i c h a e l h o d g k i n s o n     nonex ecutiv e  deputy   chairman  
  senior   independent dir ect or
p e t e r l o n g   chief  ex ecutiv e
j o h a n  l u n d g r e n   managing  dir ect or   northern  r egion
d r  e r h a r d  s c h i p p o r e i t   nonex ecutiv e  dir ect or
d r  a l b e r t s c h u n k   nonex ecutiv e  dir ect or
h a r o l d  s h e r  nonex ecutiv e  dir ect or
g i l e s  t h o r l e y  nonex ecutiv e  dir ect or
w i l l i a m w a g g o t t     commer cial dir ect or
a ll   d ir e c t o r s   d e t a il e d   a b o v e   s e r v e d   t hr o u g h ou t   t h e   y ea r   w i t h   t h e 
e x c e pt i o n   o f   h o r s t   b a i e r   w h o   w a s   a p p oin t e d   o n   1 3   o c t o b e r   2 0 0 9     
p a ul   b o w t e ll    w ill   r e s i g n   f r o m   t h e   b o ar d   o n   3 1   d e c e m b e r   2 0 1 0     
w illi a m   w a g g o t t      g r o up   c o m m e rc i a l   d ir e c t o r    w a s   a p p oin t e d    
c hi e f   f in an c i a l   o f fi c e r   w i t h   e f f e c t   f r o m   3 0   n o v e m b e r   2 0 1 0    
a s   at   3 0   s e pt e m b e r   2 0 1 0    t h e   b o ar d   c o m p r i s e d   fi v e   e x e c u t i v e  
d ir e c t o r s   a n d   1 2   n o n  e x e c u t i v e   d ir e c t o r s    in c lu d in g   t h e   c h a ir m an     
o n   1 3   o c t o b e r   2 0 0 9   h o r s t   b a i e r   w a s   a p p oin t e d   a s   a   n o n  e x e c u t i v e  
d ir e c t o r      b i og r ap hi c a l   d e t a il s   o f   a ll   t h e   d ir e c t o r s   a r e   s e t   o u t   o n 
p a g e   4 3 
in   ac c o r d a n c e   w i t h   t h e   n e w   u k   c o r p o r a t e   g o v e r n an c e   c o d e  
g ui d elin e s    w i t h   e f f e c t   f r o m   t hi s   a nn u a l   g e n e r al   m e e t in g    a g m     a ll 
d ir e c t o r s   w ill   b e   s ubj e c t   t o   a nn u a l   r e  e l e c t i o n   b y   s h a r e h o l d e r s      t o 
e n ab l e   s h a r e h o l d e r s   t o   m a k e   a n   in f o r m e d   d e c i s i o n    t h e   2 0 1 1   n o t i c e   o f  
t h e   a g m   in c lu d e s   bi og r ap hi c a l   d e t a il s   a n d   a   s t at e m e n t   a s   t o   w h y   t h e 
c o m p a n y   b e li e v e s   t h e   d ir e c t o r s   s h o ul d   b e   r e  e l e c t e d      t h e   c h a ir m an  
in t e n d s   t o   c o n fi r m   at   t h e   a g m   t h at   t h e   p e r f o r m an c e   o f   eac h  
in d i v i d u a l   c o n t in u e s   t o   b e   e f f e c t i v e   an d   d e m o n s t r at e s   c o m mi t m e n t   
t o   t h e   r o l e     
t h e   b o ar d   r e c o m m e n d s   t o   s h a r e h o l d e r s   t h e   r e  a p p oin t m e n t   o f   a ll 
d ir e c t o r s   r e t ir in g   at   t h e   m e e t in g   o n   t h e   b a s i s   t h at   t h e y   a r e   a ll 
e f f e c t i v e   d ir e c t o r s   o f   t h e   c o m p a n y   a n d   d e m o n s t r at e   t h e   a p p r o p r i a t e  
l e v e l   o f   c o m mi t m e n t   in   t h e ir   r e s p e c t i v e   r o l e s    
t h e   t e r m s   o f   t h e   d ir e c t o r s ’   s e r v i c e   c o n t r ac t s   a r e   d i s c l o s e d   in   t h e 
r e mun e r at i o n   r e p o r t   c o m m e n c in g   o n   p a g e   5 3      d ir e c t o r s ’   in t e r e s t s   
in   t h e   s h a r e s   o f   t h e   c o m p an y   a r e   d i s c l o s e d   o n   p a g e   6 2     
d ir e c t o r s ’   s e r v i c e   c o n t r ac t s   a n d   t h e   l e t t e r s   o f   a p p oin t m e n t   o f   t h e  
n o n  e x e c u t i v e   d ir e c t o r s   a r e   a v a il ab l e   f o r   in s p e c t i o n   at   t h e   c o m p a n y ’ s  
r e g i s t e r e d   o f fi c e   a n d   w ill   b e   a v a il ab l e   at   t h e   a g m   w hi c h   i s   s c h e d ul e d 
t o   t a k e   p l ac e   o n   t h ur s d a y   3   f e b r u ar y   2 0 1 1     
f o ll o w in g   t h e   a p p oin t m e n t   o f   a n y   n e w   d ir e c t o r    t h e   c h a ir m an    in  
c o n j un c t i o n   w i t h   t h e   c o m p an y   s e c r e t a r y    e n s ur e s   t h at   a   f ull    f o r m a l  
a n d   t a il o r e d   in d u c t i o n   t o   t h e   c o m p a n y   i s   p r o v i d e d      t h e   c o m p a n y  
s e c r e t a r y   i s   a v a il ab l e   t o   a n s w e r   a n y   q u e s t i o n s   w hi c h   m a y   a r i s e      
a l l   d i r e c t o r s   h a v e   b e e n   g i v e n   a   d e t a i l e d   i n d u c t i o n   a n d   t r a i n i n g   m a n u a l     
go v ernanc e
corporate governance report group at a glance strategic overview business performance governance financial statements shareholder information
 
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  49
independence of nonexecutive directors
t h e   c h a ir m an    d r   m i c h ae l   f r e n z e l    d i d   n o t   m e e t   t h e   in d e p e n d e n c e  
c r i t e r i a   l a i d   o u t   in   t h e   p r o v i s i o n s   o f   t h e   c o m bin e d   c o d e   at   t h e   t im e   
o f   hi s   ap p oin t m e n t      t hi s   i s   b e c a u s e   d r   f r e n z e l   i s   t h e   c hi e f   e x e c u t i v e  
o f   t u i   a g   –   a   54  9 2    s h a r e h o l d e r   o f   t h e   c o m p a n y   a s   at 
3 0   s e pt e m b e r   2 0 1 0 
d e t a il s   o f   t h e   c h a ir m an ’ s   o t h e r   s i g ni fi c a n t   c o m mi t m e n t s   a r e   g i v e n   in 
hi s   bi og r ap h y   o n   p a g e   4 3      t h e   c h a ir m an   d o e s   h a v e   a   n um b e r   o f   o t h e r 
e x t e r n a l   r o l e s   b u t   t h e   b o ar d   i s   s at i s fi e d   t h at   t h e s e   d o   n o t   in t e r f e r e 
w i t h   t h e   p e r f o r m an c e   o f   hi s   d u t i e s   a s   c h a ir m an   o f   t h e   c o m p a n y 
o f   t h e   o t h e r   1 1   n o n  e x e c u t i v e   d ir e c t o r s    t w o   a r e   n o t   c o n s i d er e d   t o 
b e   in d e p e n d e n t   –   h o r s t   b a i e r   i s   a l s o   a n   e x e c u t i v e   d ir e c t o r   o f   t u i   a g  
a n d   r a in e r   f e u e r h a k e   w a s   a   m e m b e r   o f   t u i   a g ’ s   e x e c u t i v e   b o ar d  
un t il   hi s   r e s i g n at i o n   in   f e b r u ar y   2 0 1 0     
t h e   n o n  e x e c u t i v e   d ir e c t o r s   c o n s i d er e d   t o   b e   in d e p e n d e n t   a r e  
s ir   m i c h ae l   h o d g k in s o n    t o n y   c am p b e ll    c l a r e   c h ap m an    b ill   d a l t o n  
j e r e m y   h i c k s    d r   e r h ar d   s c hip p o r e i t    d r   a lb e r t   s c h unk    h a r o l d   s h e r 
a n d   g il e s   t h o r l e y     
t h e   b o ar d   r e c og ni s e s   t h at   t h e   c o m bin e d   c o d e   r e q uir e s   t h at   at   l ea s t  
h a l f   t h e   b o ar d    e x c lu d in g   t h e   c h a ir m an    s h o ul d   b e   in d e p e n d e n t   n o n 
e x e c u t i v e   d ir e c t o r s      t h e   b o ar d   h ad   1 7   m e m b e r s   f r o m   1 3   o c t o b e r 
2 0 0 9    w h e n   h o r s t   b a i e r   w a s   a p p oin t e d    o f   w h o m   nin e   w e r e   d e e m e d  
t o   b e   in d e p e n d e n t      f r o m   3 0   s e pt e m b e r   2 0 0 9   t o   1 3   o c t o b e r   2 0 0 9   
t h e   b o ar d   h ad   1 6   m e m b e r s   o f   w h o m   nin e   w e r e   a l s o   d e e m e d   t o   b e 
in d e p e n d e n t      t h e r e f o r e   t h e   c o m p a n y   w a s   c o m p li a n t   w i t h   p r o v i s i o n  
b 1  1   o f   t h e   c o m bin e d   c o d e   t hr o u g h ou t   t h e   y ea r   e n d e d   3 0   s e pt e m b e r 
2 0 1 0      f o ll o w in g   t h e   a p p oin t m e n t   o f   h o r s t   b a i e r    t h e   b o ar d   r e v e r t e d 
t o   1 7   m e m b e r s   o f   w h i c h   n i n e   w e r e   d e e m e d   i n d e p e n d e n t      t h e   b o a r d   i s 
c o m m i t t e d   t o   s e e k   t o   e n s u r e   t h a t   i t s   m e m b e r s h i p   i s   r e g u l a r l y   r e f r e s h e d     
meetings of the nonexecutive directors
t h e   c h a ir m an   m e t   w i t h   t h e   n o n  e x e c u t i v e   d ir e c t o r s   t w i c e   d ur in g   t h e 
y ea r   –   in   m a y   a n d   s e pt e m b e r      a   m e e t in g   h a s   b e e n   s c h e d ul e d   f o r 
2 0 1 1   an d   o t h e r s   w ill   b e   h e l d   a s   t h e   n e e d   ar i s e s     
a   m e e t in g   o f   t h e   n o n  e x e c u t i v e   d ir e c t o r s    l e d   b y   t h e   s e ni o r  
in d e p e n d e n t   d ir e c t o r    t o o k   p l ac e   d ur in g   t h e   y ea r   a n d   in c lu d e d   o n   t h e  
a g e n d a   w a s   a n   a p p r a i s a l   o f   t h e   c h a ir m an ’ s   p e r f o r m an c e      t h e r e   w a s  
g e n e r a l   a g r e e m e n t   t h at   t h e   c h a ir m an   p r o v i d e s   g o o d   l ead e r s hip   o f   t h e 
b o ar d   a n d   a ll o w s   a ll   d ir e c t o r s   t o   p ar t i c ip a t e   in   f r e e  fl o w in g   d e b at e   in  
o r d e r   t o   m a k e   an   e f f e c t i v e   c o n t r ib u t i o n   t o   t h e   s u c c e s s f ul   r unnin g   o f 
t h e   b u s in e s s 
tui travel plc
nomination committee remuneration committee audit committee
delegated authorities
sets remuneration and incentives for the executive 
directors approves and monitors remuneration and 
incentive plans for the group
members
c m chapman chairman
l a campbell
w r p dalton
dr m h f frenzel
r feuerhake
delegated authorities
ensures that the board and committee 
composition has the optimum balance of skills 
knowledge and experience by nominating suitable 
candidates for approval by the board to fill 
executive and nonexecutive vacancies
members
sir michael hodgkinson chairman
c m chapman
j d hicks 
dr m h f frenzel
r feuerhake
delegated authorities
monitors the group’s integrity in financial reporting 
and reviews the effectiveness of the risk 
management framework
members
j d hicks chairman
l a campbell 
w r p dalton
g a thorley
board governance structure
attendance of directors at meetings of the board and its committees
  scheduled   audit  r emuner a tion
  boar d    committ ee  committ ee
  meetings   meetings   meetings
h o r s t  b a i e r   n o n  e x e c u t i v e d i r e c t o r    77  n a   n a
d r v o l ke r  b ö t t c h e r  m d c e n t r a l e u r o p e    77   n a   n a
p a u l  b o w t e l l  c h i e f  f i n a n c i a l  o f fi c e r    77  n a   n a
t o n y c a m p b e l l  n o n  e x e c u t i v e  d i r e c t o r    67   67   34
c l a r e c h a p m a n   n o n  e x e c u t i v e  d i r e c t o r    57  n a   44
b i l l  d a l t o n  n o n  e x e c u t i v e  d i r e c t o r    77   77   44
r a i n e r f e u e r h a ke   n o n  e x e c u t i v e  d i r e c t o r    67  n a   44
d r m i c h a e l  f r e n z e l   c h a i r m a n    77   n a   44    
j e r e m y  h i c k s  n o n  e x e c u t i v e  d i r e c t o r    77  77  n a
s i r  m i c h a e l  h o d g k i n s o n   d e p u t y c h a i r m a n    77   n a   n a
p e t e r  l o n g  c h i e f e x e c u t i v e   77  n a   n a
j o h a n l u n d g r e n   m d n o r t h e r n r e g i o n    77   n a   n a
e r h a r d  s c h i p p o r e i t   n o n  e x e c u t i v e  d i r e c t o r    67  n a   n a
d r a l b e r t  s c h u n k   n o n  e x e c u t i v e d i r e c t o r    77  n a   n a
h a r o l d  s h e r  n o n  e x e c u t i v e d i r e c t o r    77  n a   n a
g i l e s  t h o r l e y   n o n  e x e c u t i v e  d i r e c t o r    47   67   n a
w i l l  w a g g o t t   c o m m e r c i a l  d i r e c t o r    77   n a   n a
f i g u r e s   i n   b r a c ke t s   i n d i c a t e   t h e   m a x i m u m   n u m b e r   o f   m e e t i n g s   d u r i n g   t h e   y e a r   i n   w h i c h   t h e  
i n d i v i d u a l   w a s   a   b o a r d   m e m b e r      t h e   n o m i n a t i o n   c o m m i t t e e   d i d   n o t   m e e t   d u r i n g   t h e   y e a r 
d ur in g   t h e   y ea r    m e e t in g s   o f   p un c h    w h e r e   g il e s   t h o r l e y   w a s   c hi e f 
e x e c u t i v e   o f fi c e r    a n d   t r a g u s    w h e r e   h e   i s   c h a ir m an    c l a s h e d   o n   t hr e e  
o c c a s i o n s   w i t h   t h o s e   o f   t u i   t r a v e l   b o ar d   m e e t in g s    w hi c h   i s    
w h y   h e   w a s   un a b l e   t o   at t e n d      c l a ir e   c h ap m an   w a s   un ab l e   t o   at t e n d 
t w o   b o ar d   m e e t in g s   d u e   t o   c l a s h e s   w i t h   nh s   m e e t in g s    w h e r e   s h e    
i s   d ir e c t o r   g e n e r al   o f   w o r k f o rc e  
remuneration committee
s e e   t h e   r e mun e r at i o n   r e p o r t   f o r   f ull   d e t a il s   o f   t h e   r e mun e r at i o n 
c o m mi t t e e    i t s   c o m p o s i t i o n   an d   w o r k   d ur in g   t h e   y ea r 
d ur in g   jan u a r y   a n d   f e b r u ar y   2 0 1 0    t h e   r e mun e r at i o n   c o m mi t t e e  
m e m b e r s   p ar t i c ip a t e d   in   a n   in d e p e n d e n t   s ur v e y   o f   c o m mi t t e e  
m e m b e r s ’   p e r f o r m a n c e    w h i c h   w a s   c o n d u c t e d   b y   d e l o i t t e      a n   a n a l y s i s  
o f   t h e   r e s u l t s   w a s   p r o d u c e d   a t   t h e   e n d   o f   f e b r u a r y   2 0 1 0   a n d   c o n s i d e r e d  
at   a   m e e t in g   in   m a rc h   2 0 1 0      t h e r e   w a s   un anim o u s   s up p o r t   f o r   t h e 
o v e r a ll   e f f e c t i v e n e s s   o f   t h e   c o m mi t t e e      t h e   a n al y s i s   in d i c at e d   t h at  
k e e pin g   c l o s e l y   in   t o u c h   w i t h   s h a r e h o l d e r   p e r s p e c t i v e s   a n d   t h e 
g r o up ’ s   c o s t   o f   p e n s i o n   p r o v i s i o n   s h o ul d   b e   o f   p ar t i c ul a r   f o c u s       
t h e   c o m mi t t e e   c o n s i d e r e d   r e c e n t   s h a r e h o l d e r   f e e db ac k    a g r e e d    wwwtuitravelplccom
50  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
go v ernanc e
corporate governance report c o n t i n u e d
t h at   t h e   c o m mi t t e e   c h a ir m an   s h o ul d   m e e t   w i t h   k e y   s h a r e h o l d e r s   t o 
d i s c u s s   p oin t s   r a i s e d   a n d   in   m a y   t h e   c o m mi t t e e   f ur t h e r   c o n s i d e r e d 
t h e   f e e db ac k   f r o m   t h o s e   m e e t in g s      a   n e w   f ull   p e r f o r m an c e 
e v a lu at i o n   p r o c e s s   i s   s c h e d ul e d   t o   c o m m e n c e   in   jan u a r y   2 0 1 1 
nomination committee 
t h e   c o m mi t t e e   c o m p r i s e s   fi v e   n o n  e x e c u t i v e   d ir e c t o r s   a n d   i s   c h a ir e d  
b y   s ir   m i c h ae l   h o d g k in s o n    t h e   s e ni o r   in d e p e n d e n t   d ir e c t o r     
in   r e l a t i o n   t o   t h e   a p p oin t m e n t   o f   h o r s t   b a i e r    w h o   w a s   a p p oin t e d   o n  
1 3   o c t o b e r   2 0 0 9    a   d e s c r ip t i o n   o f   t h e   r o l e   an d   r e q uir e d   c ap a bili t i e s  
w a s   p r e p a r e d   p r i o r   t o   t h e   a p p oin t m e n t      a   m e e t in g   o f   t h e   c o m mi t t e e  
–   c h a ir e d   b y   s ir   m i c h ae l   h o d g k in s o n    n o n  e x e c u t i v e   d e p u t y  
c h a ir m an    –   c o n s i d er e d   h o r s t ’ s   s ui t a bili t y   f o r   t h e   r o l e    hi s   o t h e r 
s i g ni fi c a n t   c o m mi t m e n t s   an d   t h e   e x i s t in g   s k ill s   an d   k n o w l e d g e   o f   t h e 
b o ar d   a s   a   w h o l e      a s   a   s i g ni fi c a n t   p e rc e n t a g e   o f   t h e   g r o up ’ s   t ur n o v e r  
i s   g e n e r at e d   in   g e r m an y    i t   w a s   b e li e v e d   t h at   ad d i t i o n a l   e x p e r t i s e   a n d 
e x p e r i e n c e   in   t h e   d i f f e r e n c e s   b e t w e e n   g e r m an   a n d   u k   ac c o un t in g 
p r ac t i c e s   w a s   r e q uir e d      i t   w a s   f e l t   t h at   h o r s t ’ s   e x p e r i e n c e   in   t h e  
l e i s ur e   t r a v e l   in d u s t r y   a s   a n   e x e c u t i v e   d ir e c t o r   o f   t u i   a g    an d   hi s 
p r e v i o u s   e x p e r i e n c e   o v e r   a   l o n g   c ar e e r   in v o l v in g   w o r k   o f   a   fi n a n c i a l  
n at ur e    w o ul d   a s s i s t   t h e   b o ar d   an d   e n ab l e   him   t o   m a k e   a n   e x c e ll e n t  
c o n t r ib u t i o n   t o   i t s   d e lib e r a t i o n s      f o r   t hi s   r ea s o n    i t   w a s   n o t   d e e m e d 
a p p r o p r i a t e   f o r   a n   e x t e r n a l   s ea rc h   c o n s ul t a n c y   o r   o p e n   ad v e r t i s in g   t o 
b e   u s e d   f o r   t hi s   a p p oin t m e n t   a s   t h e   b o ar d   w a s   o f   t h e   v i e w   t h at   n o 
o t h e r   c an d i d a t e   w o ul d   b e   a b l e   t o   m at c h   t h e   s p e c i fi c   k n o w l e d g e   a n d 
e x p e r t i s e   h o r s t   b r in g s   t o   t hi s   r o l e 
a t   t h e   m e e t in g   h e l d   in   o c t o b e r   2 0 0 9   t h e   c ur r e n t   m e m b e r s hip   a n d 
e f f e c t i v e n e s s   o f   t h e   c o m mi t t e e   w a s   al s o   d i s c u s s e d   a n d   i t   w a s   a g r e e d  
t h at   t h e   c o m p o s i t i o n   o f   t h e   c o m mi t t e e   r e m a in e d   ap p r o p r i at e   a n d  
e f f e c t i v e      t h e   e f f e c t i v e n e s s   o f   t h e   c o m mi t t e e   w a s   a s s e s s e d   a g a in   in  
m a y   2 0 1 0   b y   m ea n s   o f   a   n e w l y  d e s i g n e d   a s s e s s m e n t   q u e s t i o nn a ir e     
t h e   o nl y   s i g ni fi c a n t   p oin t s   r a i s e d   w e r e   in   r e s p e c t   o f   t h e   r e c e ip t   o f 
m o r e   t im e l y   an d   c l ear   s up p o r t in g   m a t e r i al s   a n d   a ll o w in g   m o r e   t im e   
f o r   c o n s i d e r at i o n   o f   s u c c e s s i o n   p l a nnin g   –   t hi s   l a t t e r   p oin t   w a s   t h e 
s ubj e c t   o f   a   f ull   m e e t in g   in   m a y   2 0 1 0 
a t   t h at   m e e t in g    t h e   c o m mi t t e e ’ s   m a in   f o c u s   w a s   o n   t h e   c o m p a n y ’ s  
m a n a g e m e n t   c ap a bili t y   a n d   s u c c e s s i o n   p l a nnin g   p o li c i e s      in   t h e 
c o n t e x t   o f   t h e   d e c e n t r a l i s e d   n a t u r e   o f   t h e   o r g a n i s a t i o n    t h e   c o m p a n y ’ s 
p o li c y   t o   ac t i v e l y   s e e k   a n d   i d e n t i f y   e m e r g in g   t a l e n t   an d   t h o s e  
in d i v i d u a l s   w h o   c an   m a k e   a   s i g ni fi c a n t   d i f f e r e n c e   t o   o r g a ni s a t i o n a l 
p e r f o r m an c e   w a s   d i s c u s s e d   an d   t h e   v a r i o u s   l ead e r s hip   s k ill s 
p r og r am m e s   w e r e   r e v i e w e d      t h e   im p o r t an c e   o f   i d e n t i f y in g   b u s in e s s  
c r i t i c al   r o l e s    d e v e l o p m e n t   p r og r a m m e s   a n d   a   r e p l ac e m e n t   pip e lin e  
f o r   s e ni o r   r o l e s   w e r e   a l s o   d i s c u s s e d 
audit committee 
a ll   m e m b e r s   o f   t h e   c o m mi t t e e   a r e   c o n s i d e r e d   t o   b e   in d e p e n d e n t       
in   ac c o r d a n c e   w i t h   t h e   c o m bin e d   c o d e    t h e   b o ar d   i s   s at i s fi e d   t h at 
j e r e m y   h i c k s   h a s   ‘ r e c e n t   a n d   r e l e v an t   fi n a n c i a l   e x p e r i e n c e ’ 
t h e   c hi e f   f in an c i a l   o f fi c e r    t h e   d ir e c t o r   o f   g r o up   a u d i t   s e r v i c e s   a n d 
t h e   e x t e r n a l   a u d i t o r s   ar e   n o r m a ll y   in v i t e d   t o   m e e t in g s   a n d   o t h e r 
d ir e c t o r s    in c lu d in g   t h e   c hi e f   e x e c u t i v e   a n d   t h e   n o n  e x e c u t i v e  
d ir e c t o r s    m a y   a l s o   at t e n d      t h e   c h a ir m an   o f   t h e   c o m mi t t e e   al s o 
m e e t s   w i t h   t h e   e x t e r n a l   a u d i t o r s   w i t h ou t   m a n a g e m e n t   p r e s e n t 
t h e   c o m m i t t e e ’ s   d u t i e s    w h i c h   w e r e   d i s c h a r g e d   d u r i n g   t h e   y e a r    i n c l u d e   
•     m o ni t o r in g   t h e   in t e g r i t y   o f   t h e   f in an c i al   s t at e m e n t s   o f   t h e  
c o m p a n y   a n d   f o r m a l   an n oun c e m e n t s   r e l a t in g   t o   t h e   c o m p an y ’ s 
f in an c i al   p e r f o r m an c e   an d   r e v i e w in g   t h e   s i g ni f i c a n t   f in an c i al 
r e p o r t in g   j u d g e m e n t s   c o n t a in e d   in   t h e m 
•     r e v i e w in g   t h e   c o m p a n y ’ s   in t e r n a l   f in an c i al   c o n t r o l s   a n d   t h e  
c o m p a n y ’ s   in t e r n a l   c o n t r o l   a n d   r i s k   m a n a g e m e n t   s y s t e m s     
•     m o ni t o r in g   t h e   e f f e c t i v e n e s s   o f   t h e   c o m p an y ’ s   g r o up   a u d i t  
s e r v i c e s ’   f un c t i o n   t hr o u g h   m e e t in g s   w i t h   t h e   d ir e c t o r   o f   g r o up 
a u d i t   s e r v i c e s    t h e   a g r e e m e n t   in   ad v a n c e   o f   a nn u a l   w o r k   p l a n s 
a n d   t h e   r e v i e w   o f   t h e   r e s ul t s   o f   t h e   w o r k   un d e r t a k e n 
•   t h e   c o n s i d e r at i o n   o f   t h e   a p p oin t m e n t    r e  a p p oin t m e n t   a n d 
r e m o v a l   o f   t h e   e x t e r n a l   a u d i t o r s   a n d   t h e   a p p r o v a l   o f   t h e ir 
r e mun e r a t i o n   a n d   t e r m s   o f   t h e ir   e n g a g e m e n t 
•   a   p o li c y   f o r   t h e   e n g a g e m e n t   o f   t h e   e x t e r n a l   a u d i t o r s   t o   s up p l y 
n o n  a u d i t   s e r v i c e s   w a s   a p p r o v e d   in   2 0 0 7   a n d   r e m a in s   in   f o rc e     
t h e   a u d i t   c o m mi t t e e   h a s   c o n c lu d e d   t h at    in   s o m e   c a s e s    t h e  
p r o v i s i o n   o f   n o n  a u d i t   s e r v i c e s   b y   t h e   in c um b e n t   a u d i t o r s     
w hi c h   d o e s   n o t   im p ac t   o n   t h e ir   in d e p e n d e n c e   in   p r o v i d in g   t h e ir 
p r im a r y   s t a t u t o r y   a u d i t   r o l e    i s   a p p r o p r i a t e   a n d   t h i s   h a s   b e e n 
c o m m u n i c a t e d   t o   t h e   b o ar d      a u d i t o r   in d e p e n d e n c e   an d  
o bj e c t i v i t y   a r e   s af e g u ar d e d   b y   t h e   a u d i t   c o m mi t t e e   m o ni t o r in g  
a n d   a p p r o v in g    w h e r e   a p p r o p r i a t e    t h e   n at ur e   o f   t h e   w o r k   a n d   t h e 
l e v e l   o f   f e e s   p a i d   f o r   n o n  a u d i t   s e r v i c e s   a s   a   p r o p o r t i o n   o f   t h e 
t o t al   a u d i t   f e e s   p a i d    
audit committee effectiveness review
a n   a s s e s s m e n t   o f   t h e   e f f e c t i v e n e s s   w a s   c o n d u c t e d   d ur in g   t h e   y ea r    
b y   a   q u e s t i o nn a ir e   s e n t   b y   t h e   c o m p a n y   s e c r e t a r y   t o   m e m b e r s   o f    
t h e   a u d i t   c o m mi t t e e   a n d   r e l e v an t   e x e c u t i v e s      t h e   q u e s t i o nn a ir e  
c o n t a in e d   2 3   q u e s t i o n s   w hi c h   r e l a t e d   t o   t h e   a u d i t   c o m mi t t e e   an d    
o f   t h e s e    o nl y   t w o   r e c e i v e d   b e l o w  a v e r a g e   s c o r e s   –   o n e   r e l a t in g   t o   
t h e   g r o up ’ s   in t e r n a l   fi n a n c i a l   c o n t r o l   s y s t e m s   a n d   t h e   o t h e r   w i t h   i t s  
r i s k   m a n a g e m e n t   p r o c e s s e s      r e s ul t s   f r o m   t h e   q u e s t i o nn a ir e s   w e r e  
p r e s e n t e d   t o   t h e   b o ar d   in   j ul y   2 0 1 0     
internal control and risk
t h e   b o ar d   h a s   o v e r a ll   r e s p o n s ibili t y   f o r   t h e   g r o up ’ s   s y s t e m   o f   
in t e r n a l   c o n t r o l   a n d   f o r   r e v i e w in g   i t s   e f f e c t i v e n e s s    w hil e   t h e   r o l e    
o f   m a n a g e m e n t   i s   t o   im p l e m e n t   b o ar d   p o li c i e s   o n   r i s k   a n d   c o n t r o l     
t h e   s y s t e m s   o f   in t e r n a l   c o n t r o l   a n d   r i s k   m a n a g e m e n t   h a v e   b e e n 
d e v e l o p e d   t o   e n s ur e   c o m p li a n c e   w i t h   t h e   c o m bin e d   c o d e    u k  
c o r p o r a t e   g o v e r n a n c e   c o d e   a s   a p p r o p r i a t e    an d   t ur nb ull   g ui d a n c e  
o n   in t e r n a l   c o n t r o l   an d   r i s k   m a n a g e m e n t 
t h e   b o ar d   h a s   d e l e g a t e d   t h e   d a y  t o  d a y   m an a g e m e n t   o f   t h e 
c o m p a n y   t o   t h e   c hi e f   e x e c u t i v e   a n d    t hr o u g h   him    t o   t h e   o t h e r  
e x e c u t i v e   d ir e c t o r s   a n d   t h e   g mb      t h e   s y s t e m   o f   in t e r n a l   c o n t r o l   i s 
d e s i g n e d   t o   m a n a g e   a n d   mi t i g a t e   r at h e r   t h a n   e limin at e   t h e   r i s k   o f 
f a ilur e   t o   ac hi e v e   b u s in e s s   o bj e c t i v e s      in   p ur s uin g   t h e s e   o bj e c t i v e s  
in t e r n a l   c o n t r o l s   –   w hi c h   in c lu d e   fi n a n c i a l    o p e r at i o n al   a n d   c o m p li a n c e  
c o n t r o l s   –   a n d   r i s k   m a n a g e m e n t   c an   o nl y   p r o v i d e   r ea s o n ab l e    an d   n o t  
a b s o lu t e    a s s ur an c e   a g a in s t   m a t e r i al   mi s s t at e m e n t   o r   l o s s      t h e   b o ar d  
h a s   r e v i e w e d   t h e   e f f e c t i v e n e s s   o f   in t e r n a l   c o n t r o l s   d ur in g   t h e   y ea r 
c l ea r l y   t h e r e   h a s   b e e n   a   b r eak d o w n   in   in t e r n a l   c o n t r o l s   in   t h e   u k  
m a in s t r ea m   b u s in e s s   w hi c h   g a v e   r i s e   t o   t h e   ir r e c o v e r a b l e   b al a n c e 
w r i t e  o f f s    s e e   p a g e   7 0       t h e   a u d i t   c o m mi t t e e   c o m mi s s i o n e d   a   f ull  
a n d   t h o r ou g h   c o n t r o l s   a n d   c o m p li a n c e   r e v i e w   ac r o s s   t h e   o r g a ni s a t i o n   
c h a ir e d   b y   j e r e m y   h i c k s    h ead   o f   t h e   a u d i t   c o m mi t t e e    a n d 
s up p o r t e d   b y   k p m g   an d   p w c      t hi s   p r og r a m m e   o f   w o r k   c o n s i s t e d   
o f   s e v e r a l   f o c u s e d   w o r k s t r eam s    o n e   o f   w hi c h   w a s   d e d i c at e d   t o   t h e  
u k   m a in s t r ea m   c o n t r o l   e n v ir o nm e n t      t hi s   in c lu d e d   t h e   f ull   a n d 
t h o r ou g h   r e v i e w   o f   t h e   t w o   r e s e r v at i o n   s y s t e m s   w hi c h   g a v e   r i s e   t o    
t h e   i s s u e s   an d   t h e   r e c o n c ili at i o n   o f   t h e s e    a n d   a n   o n g oin g   r e v i e w   o f 
b ac k  o f fi c e   fi n a n c e   p r o c e s s e s      a   h ea v y   f o c u s   w a s   o n   r e v i e w in g 
e x i s t in g   c o n t r o l s   in   p l ac e   a n d   p r o v i d in g   r e c o m m e n d a t i o n s   o n   w h e r e  
t h e s e   c o ul d   b e   im p r o v e d   up o n      t h e   o t h e r   w o r k s t r eam s   c o n s i d e r e d  
t h e   w h o l e   o r g a ni s a t i o n    c o n s i s t in g   o f   a n   e x t e n s i v e   b al a n c e   s h e e t   group at a glance strategic overview business performance governance financial statements shareholder information
 
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r e v i e w   p r og r a m m e   a n d   o t h e r   c o n t r o l   r e v i e w s   l o o k in g   at   in t e rc o m p an y  
p o li c i e s   a n d   g e n e r a l   p e r i o d i c   fi n a n c e   c o n t r o l   p r o c e s s e s      a s   a   r e s ul t   o f 
t hi s   pi e c e   o f   w o r k    n e w   p o li c i e s   a n d   p r o c e d ur e s   o n   k e y   a r ea s   o f 
fi n a n c i a l   c o n t r o l   h a v e   b e e n   d e v e l o p e d   in   c o n j un c t i o n   w i t h   s e ni o r 
fi n a n c e   t ea m s   ac r o s s   t h e   o r g a ni s a t i o n   a n d   h a v e   n o w   b e e n   p u t   in   p l ac e     
t h e s e   w ill   b e   c o n t in u all y   d e v e l o p e d   a n d   im p r o v e d   up o n   t hr o u g h ou t 
t h e   n e x t   fi n a n c i a l   y ea r 
t h e   b o ar d   c o n fi r m s   t h at   t h e r e   i s   a n   o n g oin g   p r o c e s s   f o r   i d e n t i f y in g  
e v a lu at in g   a n d   m a n a g in g   t h e   s i g ni fi c a n t   r i s k s   f ac e d   b y   t h e   g r o up    t h at  
t hi s   h a s   b e e n   in   p l ac e   f o r   t h e   y ea r   un d e r   r e v i e w   a n d   up   t o   t h e   d a t e   o f 
a p p r o v a l   o f   t h e   a nn u a l   r e p o r t   a n d   a c c o un t s    t h at   t hi s   p r o c e s s   i s  
r e g ul ar l y   r e v i e w e d   b y   t h e   b o ar d    a n d   t h at   t h e   p r o c e s s   ac c o r d s   w i t h  
t h e   t ur nb ull   g ui d a n c e      t h e   k e y   e l e m e n t s   o f   t h e   c o n t r o l   f r a m e w o r k 
a n d   r e v i e w   p r o c e s s e s   in   p l ac e   ac r o s s   t h e   g r o up   a r e   a s   f o ll o w s  
•     t h e   b o ar d   s e t s   c o r p o r at e   s t r at e g y   a n d   b u s in e s s   o bj e c t i v e s       
t h e   g mb   a n d   s e c t o r   m a n a g e m e n t   in t e g r at e   t h e s e   o bj e c t i v e s    
in t o   t h e ir   o p e r a t i o n al   a n d   f in an c i al   b u s in e s s   p l a n s      w h e r e   ar ea s 
f o r   im p r o v e m e n t   in   t h e   s y s t e m   o f   in t e r n a l   c o n t r o l   a r e   i d e n t i f i e d   
t h e   b o ar d   c o n s i d er s   t h e   r e c o m m e n d a t i o n s   m ad e   b y   t h e   g mb   a n d  
t h e   a u d i t   c o m mi t t e e 
•     t h e   g mb   m e e t s   r e g ul ar l y   t og e t h e r   w i t h   o t h e r   s e ni o r   e x e c u t i v e s    
t o   c o n s i d er   g r o up   o p e r at i o n al   a n d   f in an c i al   p e r f o r m an c e   a n d 
b u s in e s s   d e v e l o p m e n t      t h e   c hi e f   e x e c u t i v e   r e p o r t s   t o   t h e   b o ar d  
o n   b e h al f   o f   t h e   g mb   o n   s i g ni f i c a n t   c h an g e s   in   t h e   b u s in e s s   a n d  
t h e   e x t e r n a l   e n v ir o nm e n t      t h e   c hi e f   f in an c i a l   o f f i c e r   p r o v i d e s  
t h e   b o ar d   w i t h   f in an c i al   in f o r m a t i o n   w hi c h   in c lu d e s   k e y  
p e r f o r m an c e   a n d   r i s k   in d i c at o r s 
•     g r o up   r i s k   m a n a g e m e n t   h a s   d e s i g n e d   a   f r a m e w o r k   f o r   r i s k 
m a n a g e m e n t   f o r   t u i   t r a v e l   in   lin e   w i t h   t ur nb ull   g ui d a n c e  
in t e g r at e d   w i t h   t h e   s h o r t   a n d   l o n g  t e r m   b u s in e s s   p l a nnin g  
p r o c e s s e s      s e e   e n t e r p r i s e  w i d e   r i s k   m a n a g e m e n t 
•     t h e   a u d i t   c o m mi t t e e    w i t h   a s s i s t an c e   f r o m   c e r t a in   r e l a t e d  
m a n a g e m e n t   c o m mi t t e e s    o v e r s e e s   k e y   r i s k s    s u c h   a s   f in an c i al 
r i s k    h ea l t h   an d   s af e t y    c o r p o r at e   a n d   s o c i al   r e s p o n s ibili t y   an d   t h e 
e n v i r o n m e n t    w h e r e   s u c h   r i s k s   a p p l y   a c r os s   a l l   s e c t o r s      t h e   b o a r d  
b e li e v e s   t h at    in   o r d e r   t o   b e   e f f e c t i v e    r i s k   m a n a g e m e n t   p r o c e s s e s 
mu s t   b e   dr i v e n   d o w n   t o   eac h   o p e r at in g   uni t      a c c o r d in g l y    eac h 
s e c t o r   b o ar d   n o w   ad dr e s s e s   r i s k   m a n a g e m e n t   a s   a   s t a n d in g  
a g e n d a   i t e m   a n d   i s   r e s p o n s ib l e   f o r   e n s ur in g   t h at   t h e   r i s k s   f ac in g  
t h at   s e c t o r ’ s   b u s in e s s e s   a r e   i d e n t i f i e d   a n d   t h at   r e l a t e d   ac t i o n 
p l a n s   a r e   im p l e m e n t e d      s e c t o r s   f o r m a ll y   r e p o r t   t h e ir   r i s k   p r o f il e  
o n   a   q u ar t e r l y   b a s i s 
•     t h e   g r o up   a u d i t   s e r v i c e s   f un c t i o n   in d e p e n d e n t l y   r e v i e w s   t h e   r i s k  
i d e n t i f i c at i o n   p r o c e d ur e s   an d   c o n t r o l   p r o c e s s e s    im p l e m e n t e d   b y 
m a n a g e m e n t   a n d   r e p o r t s   i t s   f in d in g s   at   eac h   a u d i t   c o m mi t t e e  
m e e t in g    o r   m o r e   f r e q u e n t l y   i f   a p p r o p r i a t e 
•     t h e   a u d i t   c o m mi t t e e   r e v i e w s   t h e   p r o p o s e d   w o r k   p l a n s   o f   t h e  
g r o up   a u d i t   s e r v i c e s   f un c t i o n    r e p o r t s   i s s u e d   b y   g r o up   a u d i t 
s e r v i c e s    p r og r e s s   m ad e   o n   ad dr e s s in g   f in d in g s   a r i s in g   f r o m   t h e s e  
r e p o r t s    a s   w e ll   a s   r e p o r t s   o n   s y s t e m s   a n d   c o n t r o l s   f r o m   t h e  
e x t e r n a l   a u d i t o r s   c o v e r in g   m a t e r i al   w ea k n e s s e s      t h e   c h a ir m an   
o f   t h e   a u d i t   c o m mi t t e e   r e p o r t s   t o   t h e   b o ar d   o n   t h e   o u t c o m e   o f 
t h e   a u d i t   c o m mi t t e e   m e e t in g s   h e l d   a n d   t h e   b o ar d   r e c e i v e s   t h e 
min u t e s   o f   all   s u c h   m e e t in g s 
•     t h e   t r ea s ur y   p o s i t i o n   o f   t h e   g r o up    in c lu d in g   c a s h    f o r e i g n 
e x c h an g e   a n d   f u e l   h e d g in g   e x p o s ur e    i s   m a n a g e d   c e n t r a ll y   in  
ac c o r d a n c e   w i t h   p o li c i e s   ap p r o p r i at e   f o r   eac h   s e c t o r   a n d   i s   t h e 
r e s p o n s ibili t y   o f   t h e   c hi e f   f in an c i a l   o f f i c e r   a n d   g r o up   t r ea s ur e r     
r e p o r t s   a n d   f o r e c a s t s   ar e   s ub mi t t e d   m o n t hl y   t o   t h e   g mb   a n d   at  
eac h   m e e t in g   o f   t h e   t u i   t r a v e l   p l c   b o ar d      w e e k l y   m e e t in g s   o n 
li q ui d i t y   a n d   f u e l   h e d g in g   t a k e   p l ac e   a n d   a r e   at t e n d e d   b y   t h e 
c hi e f   e x e c u t i v e    c hi e f   f in an c i a l   o f f i c e r    g r o up   t r ea s ur e r   a n d 
o t h e r   s e ni o r   m a n a g e r s   a s   d e e m e d   n e c e s s a r y 
•     f in an c i a l   f o r e c a s t s    p r o v i d in g   p r e d i c t e d   r e s ul t s   w i t h   s e n s i t i v i t y 
a n al y s i s    a r e   p r e p a r e d   r o u t in e l y   t hr o u g h ou t   t h e   y ea r   f o r   r e v i e w   b y 
t h e   g mb   a n d   t h e   b o ar d      t h e s e   f o r e c a s t s   a l s o   in c lu d e   d e t a il s   o f  
t h e   g r o up ’ s   o n g oin g   c o m p li a n c e   w i t h   i t s   r e g ul a t o r y   a n d   b ank in g 
r e q uir e m e n t s      t h e   g r o up   h a s   e s t a b li s h e d   in v e s t m e n t   ap p r a i s a l  
a n d   a u t h o r i s a t i o n   p r o c e d ur e s   a n d   i t s   c api t a l   e x p e n d i t ur e   i s  
r e v i e w e d   a g a i n s t   b u d g e t s   w h i c h   h a v e   b e e n   a p p r o v e d   b y   t h e   b o a r d 
p r o c e s s e s   a r e   in   p l ac e   t o   e n s ur e   a p p r o p r i a t e   ac t i o n   i s   t a k e n   w h e r e  
n e c e s s a r y   t o   r e m e d y   a n y   d e fi c i e n c i e s   i d e n t i fi e d   t hr o u g h   t h e   g r o up ’ s 
in t e r n a l   c o n t r o l   a n d   r i s k   m a n a g e m e n t   p r o c e s s e s 
group risk management committee grmc
t h e   gr mc   c o m p r i s e s   o f   m e m b e r s   o f   t h e   g r o up   m a n a g e m e n t   b o ar d  
 g mb     e x c lu d in g   t h e   c hi e f   e x e c u t i v e     t h e   d ir e c t o r   o f   g r o up   a u d i t  
s e r v i c e s   a n d   t h e   g r o up   t r ea s ur e r      m e m b e r s hip   i s   r e v i e w e d   a nn u a ll y 
b y   t h e   g mb      t h e   gr mc ’ s   c o r e   r e s p o n s ibili t i e s   a r e   t o   a s s i s t   t h e   b o ar d  
b y   a s s e s s in g   an d   r e p o r t in g   t o   t h e   g mb   o n   t h e   e f f e c t i v e n e s s   o f   t h e 
c o m p a n y ’ s   in t e r n a l   c o n t r o l   s y s t e m s   in   m a n a g in g   r i s k s   a n d   in   f ul fi llin g  
i t s   r e s p o n s ibili t i e s   b y   p r o v i d in g   a n   o v e r s i g h t   o f   t h e   f r a m e w o r k   f o r  
m a n a g in g   r i s k s   t hr o u g h ou t   t h e   g r o up 
enterprisewide risk management erm
t h e   o bj e c t i v e   o f   t h e   f r a m e w o r k   s t r i v e s   t o   im p r o v e   o p e r a t i o n al  
p e r f o r m an c e    r e d u c e   l o s s e s   a n d   t o   p r o t e c t   a n d   e nh an c e   s h a r e h o l d e r  
v a lu e   in   t h e   p ur s ui t   o f   t h e   g r o up ’ s   s t r at e g i c   im p e r at i v e s      t h e   g r o up 
c o n s i d er s   f o ur   t y p e s   o f   r i s k   w h e n   i d en t i f y in g   p o t e n t i a l   e v e n t s   t h at 
c o ul d   af f e c t   t h e   d e li v e r y   o f   b u s in e s s   o bj e c t i v e s   a n d   s t r at e g i c   g o a l s    
r i s k s   a r e   c o n s i d e r e d   in   t h e   c o n t e x t   o f   l o n g e r  t e r m   s t r at e g i c   a n d 
e m e r g in g   t hr eat s    m e d i um   c h all e n g e s   a s s o c i at e d   w i t h   b u s in e s s   c h a n g e 
p r og r a m m e s    s h o r t e r  t e r m   r i s k s   t r i g g e r e d   b y   t h e   c h an g in g   e x t e r n a l  
e n v ir o nm e n t    a n d   s h o r t e r  t e r m   r i s k s   in   r e l a t i o n   t o   in t e r n a l   o p e r at i o n s 
k e y   f eat ur e s   o f   t h e   g r o up ’ s   s y s t e m   o f   r i s k   m a n a g e m e n t   a r e 
•     e s t a b li s h e d   r i s k   m a n a g e m e n t   p o li c y 
•     o n g o i n g   p r o c e s s   f o r   r i s k   i d e n t i f i c a t i o n    e v a l u a t i o n   a n d   p r i o r i t i s a t i o n  
t h at   c o ul d   im p ac t   o n   b u s in e s s   o bj e c t i v e s   o r   s t r at e g i c   g o a l s 
•     m a n a g e m e n t   p r o c e s s e s   t o   mi t i g a t e   r i s k s   w i t hin   j u s t i f i a b l e   a n d  
t o l e r a b l e   l e v e l s 
•     v i s ibili t y   o f   e x i s t in g   c o n t r o l s   a l o n g   w i t h   a n y   f ur t h e r   ac t i o n   p l a n s    
t o   t r eat   t h e   r i s k   a p p r o p r i a t e l y 
•     q u a r t e r l y   r e v i e w   a n d   up d at e   o f   r e p o r t in g   uni t s ’   r i s k   p r o f il e s 
•     h a l f  y ear l y   r e v i e w   o f   g r o up   r i s k   p r o f il e    r e p o r t e d   t o   t h e   a u d i t  
c o m mi t t e e   f o r   r e v i e w   a n d   c h all e n g e 
•     r e g ul a r   c o n s i d e r at i o n   o f   an y   in t e r n a l   a n d   e x t e r n a l   f ac t o r s   w hi c h  
c o ul d   im p ac t   t h e   g r o up   p o s i t i o n 
•     c o m p li an c e   p r o c e s s   an d   ad e q u ac y   o f   t h e   c o n t r o l s   r e v i e w e d   b y  
g r o up   a u d i t   s e r v i c e s 
in   ad d i t i o n    t h e r e   i s   r e g ul ar   r e p o r t in g   t o   t h e   b o ar d   t hr o u g h   t h e   a u d i t  
c o m mi t t e e   o n   k e y   ac t i v i t i e s   un d e r t a k e n   b y   g r o up   r i s k   m a n a g e m e n t  
a n d   t h e   s t at u s   o f   t h e   r i s k   m a n a g e m e n t   p r o c e s s 
whistleblowing process
t h e r e   a r e   p o li c i e s   a n d   p r o c e d ur e s   f o r   t h e   r e p o r t in g   b y   e m p l o y e e s   a n d  
t h e   r e s o lu t i o n   o f   s u s p e c t e d   f r a u d ul e n t   ac t i v i t i e s      i t   i s   t h e   p o li c y   o f   t h e 
g r o up   t o   e m p l o y   s t af f   a n d   m a n a g e m e n t   o f   hi g h   in t e g r i t y    t o   t r a in  
t h e m   a p p r o p r i a t e l y   a n d   t o   r e q uir e   c o m p li a n c e   w i t h   a ll   r e l e v an t   l a w s  
r e g ul a t i o n s   a n d   in t e r n a l   p o li c i e s      wwwtuitravelplccom
52  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
f o r   a ll   e m p l o y e e s   o n   a   u k   c o n t r ac t    w e   h a v e   b e e n   o p e r at in g   a 
c o n fi d e n t i al   e m p l o y e e   h o t lin e   f o r   s e v e r a l   y ea r s    u s in g   a   t hir d   p ar t y    
t o   e n s ur e   c o n fi d e n t i ali t y   a n d   a n o n y mi t y   w h e r e   t hi s   i s   r e q uir e d     
e m p l o y e e s   c an   m a k e   c o n fi d e n t i al   r e p o r t s   a b o u t   a n y   i s s u e s   t h e y   w o ul d 
lik e   t o   r a i s e   w hi c h   t h e y   f e e l   t h e y   c ann o t   r e p o r t   t o   t h e ir   m a n a g e r     
t h e   o p e r at o r   o f   o ur   h o t lin e   r e p o r t s   c all s   t o   n o min a t e d   r e c ipi e n t s   
in   o ur   g r o up   a u d i t   s e r v i c e s   d e p a r t m e n t   w h o   r e v i e w   t h e s e   a n d  
in v e s t i g at e   t h e m   a s   a p p r o p r i a t e 
in   t h e   fi n a n c i a l   y ea r   a   t o t al   o f   3 5   c all s   w e r e   m ad e   t o   t h e   h o t lin e    
t h e   m a j o r i t y   o f   w hi c h   r e s ul t e d   in   in t e r n a l   in v e s t i g at i o n s 
w i t hin   i t s   r e g ul ar   r e p o r t   t o   t h e   a u d i t   c o m mi t t e e    g r o up   a u d i t 
s e r v i c e s   p r o v i d e s   a   s um m ar y   o f   a n y   c o n fi d e n t i al   r e p o r t s   r e c e i v e d    
a n d   ac t i o n s   t a k e n      a   m o n t hl y   r e p o r t   i s   a l s o   p r o d u c e d   w hi c h   in c lu d e s   
a   s um m ar y   o f   a ll   c all s   r e c e i v e d   hi g hli g h t in g   a n y   i s s u e s   r a i s e d 
communication with shareholders
t h e   c hi e f   e x e c u t i v e    c hi e f   f in an c i a l   o f fi c e r   a n d   m e m b e r s   o f   t h e 
i n v e s t o r   r e l a t i o n s   t e a m   h o l d   r e g u l a r   m e e t i n g s   w i t h   m a j o r   s h a r e h o l d e r s  
t o   r e v i e w   t h e   g r o up ’ s   p e r f o r m an c e   an d   p r o s p e c t s      t h e   v i e w s   o f 
s h a r e h o l d e r s   a r e   c o m m u n i c a t e d   t o   a l l   m e m b e r s   o f   t h e   b o a r d   f o l l o w i n g 
s u c h   m e e t in g s      d ur in g   t h e   c o ur s e   o f   t h e s e   m e e t in g s   t h e   i s s u e   o f 
g o v e r n a n c e   i s   d i s c u s s e d      p r e s e n t at i o n s   t o   m a j o r   s h a r e h o l d e r s   ar e 
m ad e   at   l ea s t   t w i c e   y ea r l y    af t e r   t h e   a nn oun c e m e n t   o f   t h e   in t e r im   
a n d   p r e limin ar y   r e s ul t s    d e t a il s   o f   w hi c h    t og e t h e r   w i t h   t h e   g r o up ’ s 
fi n a n c i a l   r e p o r t s   an d   o t h e r   a nn oun c e m e n t s    c an   b e   ac c e s s e d   v i a   t h e  
g r o up ’ s   w e b s i t e   w w w  t ui t r a v e lp l c  c o m 
t h e   c h a ir m an   o f   t h e   r e mun e r at i o n   c o m mi t t e e    c l a r e   c h ap m an     
m e t   w i t h   f o ur   m a j o r   s h a r e h o l d e r s   in   d e c e m b e r   2 0 0 9   a n d   h ad   t w o 
ad d i t i o n al   m e e t in g s   in   a p r il   2 0 1 0   w i t h   m a j o r   s h a r e h o l d e r s   c o n c e r nin g 
t h e   r e mun e r a t i o n   p o li c y      f e e db ac k   f r o m   s h a r e h o l d e r s   o bt a in e d  
d ur in g   t h e s e   m e e t in g s   w a s   s h a r e d   w i t h   t h e   r e mun e r at i o n   c o m mi t t e e  
a n d   g i v e n   d u e   c o n s i d er at i o n     
t h e   c o m bin e d   c o d e   r e c o m m e n d s   t h at   t h e   s e ni o r   in d e p e n d e n t  
d ir e c t o r   m e e t s   w i t h   a   r a n g e   o f   m a j o r   s h a r e h o l d e r s   t o   g a in   a n  
un d e r s t a n d in g   o f   t h e ir   v i e w s      in   p r ac t i c e   a n d    a s   a   r e s ul t   o f   t h e  
e x t e n s i v e   in v e s t o r   f e e db ac k   p r o v i d e d   b y   t h e   c hi e f   e x e c u t i v e   an d   t h e 
c hi e f   f in an c i a l   o f fi c e r    t h e   s e ni o r   in d e p e n d e n t   d ir e c t o r   a n d   o t h e r  
n o n  e x e c u t i v e   d ir e c t o r s   b e li e v e   t h at   t h e y   a r e   k e pt   f ull y   up  t o  d at e 
a n d   w o ul d   b e   m ad e   a w a r e   s h o ul d   t h e r e   b e   a n y   i s s u e s      t h e y   t h e r e f o r e  
c o n s i d er e d   t h at   i t   w a s   n o t   n e c e s s a r y   t o   a r r an g e   m e e t in g s   w i t h   m a j o r  
s h a r e h o l d e r s   f o r   t hi s   p ur p o s e   d ur in g   t h e   y ea r      d ur in g   t h e   y ea r    n o 
s h a r e h o l d e r s   r e q u e s t e d   a n y   m e e t in g s   w i t h   t h e   s e ni o r   in d e p e n d e n t  
d ir e c t o r   o r   a n y   o t h e r   n o n  e x e c u t i v e   d ir e c t o r s      h o w e v e r    s h o ul d   a  
r e q u e s t   f o r   a   m e e t in g   b e   m ad e    t h e y   w o ul d   m a k e   t h e m s e l v e s   a v a il ab l e  
i f   i t   w a s   ap p r o p r i at e   t o   d o   s o     
t h e r e   i s   a n   o p p o r t uni t y   f o r   s h a r e h o l d e r s   t o   q u e s t i o n   t h e   c h a ir m an  
a n d   o t h e r   d i r e c t o r s    i n c l u d i n g   t h e   c h a i r m e n   o f   t h e   a u d i t    r e m u n e r a t i o n  
a n d   n o min a t i o n   c o m mi t t e e s    at   t h e   a nn u a l   g e n e r al   m e e t in g    a g m     
t h e   a g m   a l s o   p r o v i d e s   a   f o r um   f o r   t h e   n o n  e x e c u t i v e   d ir e c t o r s   t o 
d i s c u s s   t h e   v i e w s   o f   s h a r e h o l d e r s   w i t h   t h e m   d ir e c t l y 
in   r e s p e c t   o f   g e n e r a l   m e e t in g s   o f   t h e   c o m p a n y 
•     t h e   c o m p a n y   p r e p ar e s   s e p ar at e   r e s o lu t i o n s   o n   eac h   s ub s t a n t i all y  
s e p ar at e   i s s u e   a n d   d o e s   n o t   c o m bin e   r e s o lu t i o n s   t og e t h e r 
in ap p r o p r i at e l y 
•     p r o x y   a p p oin t m e n t   f o r m s   p r o v i d e   s h a r e h o l d e r s   w i t h   t h e   o pt i o n   
t o   v o t e   f o r    a g a in s t   o r   t o   w i t hh o l d   t h e ir   v o t e      t h e   p r o x y   f o r m  
m a k e s   i t   c l ea r   t h at   a   ‘v o t e   w i t hh e l d ’   i s   n o t   a   v o t e   in   l a w   a n d   w ill 
n o t   b e   c o un t e d 
•     a ll   p o s t a l   p r o x y   v o t e s   ar e   r e t ur n e d   t o   e q uini t i    t h e   c o m p a n y ’ s 
r e g i s t r ar    w h o   i s   r e s p o n s ib l e   t o   f o r   e n s ur in g   v o t e s   a r e   p r o p e r l y  
r e c e i v e d   a n d   c o un t e d 
•     p r o x y   c o un t s   a r e   d i s p l a y e d   at   t h e   c l o s e   o f   t h e   a g m   a n d   t h e 
r e s ul t s   p o s t e d   o n   t h e   c o m p a n y ’ s   w e b s i t e   w w w  t ui t r a v e lp l c  c o m 
f o ll o w in g   t h e   c l o s ur e   o f   t h e   m e e t in g 
•     t h e   a nn u a l   r e p o r t   a n d   a c c o un t s   i s   l a i d   b e f o r e   s h a r e h o l d e r s   
at   t h e   a g m     
combined code provisions
f o r   t h e   r ea s o n s   d i s c l o s e d   w i t hin   t hi s   a nn u a l   r e p o r t    d ur in g   t h e   y ea r  
t h e   c o m p a n y   d i d   n o t   f ull y   c o m p l y   w i t h   t h e   f o ll o w in g   p r o v i s i o n s 
•   c o d e   p r o v i s i o n   a 2  2      t h e   c h a ir m an   s h o ul d   o n   ap p oin t m e n t   m e e t 
t h e   in d e p e n d e n c e   c r i t e r i a   s e t   o u t   in   c o d e   a 3  1    s e e   p a g e   4 9    
•   c o d e   p r o v i s i o n   b 2  1      t h e   r e mun e r at i o n   c o m mi t t e e   s h o ul d   all   b e  
in d e p e n d e n t   n o n  e x e c u t i v e   d ir e c t o r s    s e e   p a g e   4 9  
•   c o d e   p r o v i s i o n   d 1  1      t h e   s e ni o r   in d e p e n d e n t   d ir e c t o r   s h o ul d  
at t e n d   s u f f i c i e n t   m e e t in g s   w i t h   a   r a n g e   o f   m a j o r   s h a r e h o l d e r s   
t o   li s t e n   t o   t h e ir   v i e w s   in   o r d e r   t o   h e lp   d e v e l o p   a   b al a n c e d  
un d e r s t a n d in g   o f   t h e   i s s u e s   an d   c o n c e r n s   o f   m a j o r   s h a r e h o l d e r s 
 s e e   a b o v e  
t h e   n e w   u k   c o r p o r a t e   g o v e r n an c e   c o d e   p r o v i s i o n s   a p p l y   t o 
ac c o un t in g   p e r i o d s   b e g innin g   o n   o r   af t e r   2 9   j un e   2 0 1 0      a l t h o u g h   t h e 
c o m p a n y ’ s   r e p o r t in g   p e r i o d   b e g an   o n   1   o c t o b e r   2 0 0 9    w e   h a v e   t a k e n  
t h e   d e c i s i o n   t o   s ub s t a n t i all y   c o m p l y   w i t h   t h e   n e w   p r o v i s i o n s   in   lin e 
w i t h   b e s t   p r ac t i c e   a n d   t o   e x p l a in   w h e n   w e   h a v e   n o t      f o r   t h e   r ea s o n s  
d i s c l o s e d   w i t hin   t hi s   a nn u a l   r e p o r t   d ur in g   t h e   y ea r   t h e   c o m p a n y   
d i d   n o t   f ull y   c o m p l y   w i t h   t h e   f o ll o w in g   ad d i t i o n a l   p r o v i s i o n s   o f   t h e 
n e w   c o d e 
•   c o d e   p r o v i s i o n   c 1  2      t h e   d ir e c t o r s   s h o ul d   in c lu d e   in   t h e   a nn u a l 
r e p o r t   a n   e x p l a n at i o n   o f   t h e   b a s i s   o n   w hi c h   t h e   c o m p an y  
g e n e r at e s   o r   p r e s e r v e s   v a lu e   o v e r   t h e   l o n g e r   t e r m    t h e   b u s in e s s  
m o d e l    a n d   t h e   s t r at e g y   f o r   d e li v e r in g   t h e   o bj e c t i v e s   o f   t h e 
c o m p a n y      in f o r m a t i o n   o n   t h e   c o m p a n y ’ s   b u s in e s s   m o d e l   i s   g i v e n  
o n   p a g e s   2   t o   4 1   a n d   a   m o r e   d e t a il e d   b u s in e s s   m o d e l   w ill   b e 
p r o v i d e d   in   t h e   y ea r   e n d e d   s e pt e m b e r   2 0 1 1   in   ac c o r d a n c e   w i t h 
u k   c o r p o r a t e   g o v e r n an c e   c o d e   p r o v i s i o n s     
andrew john
c o m p a n y   s e c r e t a r y 
1   d e c e m b e r   2 0 1 0
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corporate governance report c o n t i n u e d group at a glance strategic overview business performance governance financial statements shareholder information
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  53
remuneration report
b i l l   l o g a n   h a s   d i r e c t   a c c e s s   t o   t h e   c h a i r m a n   o f   t h e   c o m m i t t e e   a n d  
t o g e t h e r   w i t h   d a v i d   h o u s e    t h e y   a d v i s e d   t h e   c o m m i t t e e   o n   a l l   a s p e c t s  
o f   t h e   g r o u p ’ s   r e w a r d   p o l i c i e s   a n d   s t r u c t u r e s   d u r i n g   t h e   y e a r      p e t e r  
l o n g   a t t e n d s   m e e t i n g s   o f   t h e   c o m m i t t e e   t o   m a k e   r e c o m m e n d a t i o n s  
r e l a t i n g   t o   t h e   p e r f o r m a n c e   a n d   r e m u n e r a t i o n   o f   h i s   d i r e c t   r e p o r t s    
a n d   a n d r e w   j o h n    c o m p a n y   s e c r e t a r y    a c t s   a s   s e c r e t a r y   t o   t h e 
c o m m i t t e e      p e t e r   l o n g    p a u l   b o w t e l l    b i l l   l o g a n   a n d   a n d r e w   j o h n   
a r e   n o t   i n   a t t e n d a n c e   w h e n   t h e i r   o w n   r e m u n e r a t i o n   i s   c o n s i d e r e d    
d e l o i t t e    a n   e x t e r n a l   c o n s u l t a n c y   o r g a n i s a t i o n    p r o v i d e d   i n d e p e n d e n t  
a d v i c e   o n   a l l   a s p e c t s   o f   s e n i o r   m a n a g e m e n t   r e m u n e r a t i o n      d e l o i t t e   a l s o  
p r o v i d e s   s a l a r y   b e n c h m a r k i n g   i n f o r m a t i o n   a n d   t a x   s e r v i c e s   t o   t h e   g r o u p  
f r o m   t i m e   t o   t i m e   a n d   v e r i f i c a t i o n   o f   t h e   r e l a t i v e   p e r f o r m a n c e  
c o n d i t i o n s   a t t a c h e d   t o   t h e   p e r f o r m a n c e   s h a r e   p l a n   a n d   d e f e r r e d  
a n n u a l   b o n u s   s c h e m e 
h e r b e r t   s m i t h   a d v i s e d   o n   v a r i o u s   l e g a l   i s s u e s   r e l a t i n g   t o   t h e   c o m p a n y ’ s  
s h a r e   s c h e m e s   a n d   a l s o   p r o v i d e s   o t h e r   l e g a l   s e r v i c e s   t o   t h e   g r o u p     
policy on remuneration of nonexecutive directors
n o n  e x e c u t i v e   d i r e c t o r s    i n c l u d i n g   t h e   c h a i r m a n    d o   n o t   h a v e   s e r v i c e  
c o n t r a c t s   a n d   d o   n o t   p a r t i c i p a t e   i n   t h e   g r o u p ’ s   p e n s i o n   s c h e m e    a n n u a l 
b o n u s   s c h e m e   o r   l o n g  t e r m   i n c e n t i v e   s c h e m e s      n o n  e x e c u t i v e 
d i r e c t o r s   h a v e   s e c o n d  t e r m   l e t t e r s   o f   a p p o i n t m e n t   w h i c h   c a n   b e 
t e r m i n a t e d   b y   e i t h e r   p a r t y   s e r v i n g   t h r e e   m o n t h s ’   n o t i c e    w i t h   t h e 
e x c e p t i o n   o f   h o r s t   b a i e r   w h o s e   i n i t i a l   a p p o i n t m e n t   l e t t e r   h a s   n o t   y e t  
e x p i r e d   a n d    i n   c o m m o n   w i t h   a l l   i n i t i a l  t e r m   l e t t e r s    p r o v i d e s   f o r   s i x 
m o n t h s ’   n o t i c e       i n   a c c o r d a n c e   w i t h   t h e   r e q u i r e m e n t s   o f   t h e   u k  
c o r p o r a t e   g o v e r n a n c e   c o d e   a l l   d i r e c t o r s   w i l l   b e   s u b j e c t   t o   r e  e l e c t i o n   a t  
t h e   a n n u a l   g e n e r a l   m e e t i n g   t o   b e   h e l d   o n   3   f e b r u a r y   2 0 1 1     
n o n  e x e c u t i v e   d i r e c t o r s   a r e   p a i d   a   f e e   w h i c h   i s   a p p r o v e d   b y   t h e   b o a r d  
o n   t h e   r e c o m m e n d a t i o n   o f   t h e   e x e c u t i v e   d i r e c t o r s    h a v i n g   t a k e n   a c c o u n t 
o f   t h e   f e e s   p a i d   i n   o t h e r   c o m p a n i e s   o f   a   s i m i l a r   c o m p l e x i t y   a n d   t h e   s k i l l s  
a n d   e x p e r i e n c e   o f   t h e   i n d i v i d u a l s      t h e   b a s e   f e e   f o r   t h e   n o n  e x e c u t i v e  
d i r e c t o r s   i s   £ 5 5  0 0 0   b u t   t h e   c h a i r m a n   a n d   d e p u t y   c h a i r m a n    w h o   i s 
a l s o   t h e   s e n i o r   i n d e p e n d e n t   d i r e c t o r    a r e   p a i d   h i g h e r   f e e s   t o   r e f l e c t  
t h e i r   a d d i t i o n a l   r e s p o n s i b i l i t i e s      t h e   c h a i r m a n   r e c e i v e s   a   f e e   o f   £ 3 0 0  0 0 0  
a n d   t h e   d e p u t y   c h a i r m a n   r e c e i v e s   a   f e e   o f   £ 2 0 0  0 0 0      t h e   c h a i r m a n   o f 
t h e   a u d i t   c o m m i t t e e   a n d   t h e   c h a i r m a n   o f   t h e   r e m u n e r a t i o n   c o m m i t t e e 
r e c e i v e   a n   a d d i t i o n a l   f e e   o f   £ 1 5  0 0 0   a n d   £ 1 0  0 0 0   r e s p e c t i v e l y 
policy on remuneration of executive directors  
and senior executives
t h e   c o m m i t t e e   a i m s   t o   e n s u r e   t h a t   r e m u n e r a t i o n   p a c k a g e s   a r e    
o f f e r e d   w h i c h   
•     s t r u c t u r e   t h e   r e w a r d   o f   s e n i o r   m a n a g e m e n t   t o   a l i g n   t h e i r   i n t e r e s t s  
w i t h   t h o s e   o f   t h e   s h a r e h o l d e r s   o v e r   t h e   l o n g  t e r m 
•     r e i n f o r c e   t h e   h i g h  p e r f o r m a n c e   c u l t u r e   t h r o u g h o u t   t h e   g r o u p 
•   s e t   t h e   t o t a l   r e m u n e r a t i o n   p a c k a g e   a t   a n   a p p r o p r i a t e   l e v e l   t o   r e f l e c t  
t h e   c o m p e t i t i v e   m a r k e t   i n   w h i c h   t h e   g r o u p   o p e r a t e s    a n d
•     l i n k   a   s u b s t a n t i a l   p r o p o r t i o n   o f   t h e   t o t a l   r e m u n e r a t i o n   p a c k a g e   t o 
t h e   a c h i e v e m e n t   o f   d e m a n d i n g   f i n a n c i a l   p e r f o r m a n c e   t a r g e t s 
t h e   r e m u n e r a t i o n   c o m m i t t e e    t h e   c o m m i t t e e    f o r m u l a t e s   a n d   
a p p l i e s   t h e   c o m p a n y   p o l i c y   a r o u n d   t h e   r e w a r d   o f   e x e c u t i v e   d i r e c t o r s     
i t   o p e r a t e s   w i t h i n   t h e   s p i r i t   o f   t u i   t r a v e l ’ s   c o r e   v a l u e s   a n d   l o o k s   t o 
c u l t i v a t e   r e s p o n s i b l e   l e a d e r s h i p   i n   i t s   i n t e r n a l   a n d   e x t e r n a l   s o c i a l  
e n v i r o n m e n t      c o n s e q u e n t l y   t h e   c o m m i t t e e   c l o s e l y   c o n s i d e r s   t h e 
c o m p a n y ’ s   s u s t a i n e d   p e r f o r m a n c e   i n   b u i l d i n g   b o t h   s h a r e h o l d e r   v a l u e 
a n d   a   s e c u r e   f u t u r e   f o r   a l l   i t s   s t a k e h o l d e r s 
t h i s   r e p o r t   h a s   b e e n   p r e p a r e d   b y   t h e   c o m m i t t e e   a n d   h a s   b e e n 
a p p r o v e d   b y   t h e   b o a r d      i t   c o m p l i e s   w i t h   s c h e d u l e   8   o f   t h e   l a r g e    
a n d   m e d i u m   s i z e d   c o m p a n i e s   a n d   g r o u p s    a c c o u n t s   a n d   r e p o r t s   
r e g u l a t i o n s   2 0 0 8      t h i s   r e p o r t   w i l l   b e   p u t   t o   s h a r e h o l d e r s   f o r   
a p p r o v a l   a t   t h e   a n n u a l   g e n e r a l   m e e t i n g   t o   b e   h e l d   o n   t h u r s d a y    
3   f e b r u a r y   2 0 1 1 
remuneration committee
d u r i n g   t h e   y e a r    t h e   c o m m i t t e e   c o m p r i s e d   t h e   f o l l o w i n g    
n o n  e x e c u t i v e   d i r e c t o r s 
c l a r e   c h a p m a n   –   c h a i r m a n
t o n y   c a m p b e l l
b i l l   d a l t o n
d r   m i c h a e l   f r e n z e l
r a i n e r   f e u e r h a k e
t h r e e   o f   t h e   m e m b e r s   o f   t h e   c o m m i t t e e   a r e   i n d e p e n d e n t   n o n 
e x e c u t i v e   d i r e c t o r s      d r   m i c h a e l   f r e n z e l   a n d   r a i n e r   f e u e r h a k e   a r e   
n o t   c o n s i d e r e d   b y   t h e   c o m p a n y   t o   b e   i n d e p e n d e n t      d r   f r e n z e l   i s   
a   m e m b e r   o f   t h e   e x e c u t i v e   b o a r d   o f   t u i   a g   a n d   r a i n e r   f e u e r h a k e    
w a s   a   m e m b e r   o f   t u i   a g ’ s   e x e c u t i v e   b o a r d   u n t i l   h i s   r e s i g n a t i o n   i n  
f e b r u a r y   2 0 1 0      t u i   a g   i s   a   5 4  9 2    s h a r e h o l d e r   o f   t u i   t r a v e l   p l c    
a s   a t   3 0   s e p t e m b e r   2 0 1 0   a n d   t h e i r   a p p o i n t m e n t s   a r e   p u r s u a n t   t o   
t h e   r e l a t i o n s h i p   a g r e e m e n t   b e t w e e n   t u i   a g   a n d   t h e   c o m p a n y 
n o   m e m b e r   o f   t h e   c o m m i t t e e   h a s   a n y   p e r s o n a l   f i n a n c i a l   i n t e r e s t    o t h e r 
t h a n   a s   a   s h a r e h o l d e r    a s   d i s c l o s e d   i n   t h e   i n t e r e s t s   i n   s h a r e s   t a b l e   o n 
p a g e   6 2     i n   t h e   m a t t e r s   t o   b e   d e c i d e d   b y   t h e   c o m m i t t e e      t h e   t h r e e  
i n d e p e n d e n t   m e m b e r s   o f   t h e   c o m m i t t e e   h a v e   n o   c o n f l i c t s   o f   i n t e r e s t  
a r i s i n g   f r o m   c o m m i t t e e   m e m b e r s ’   c r o s s  d i r e c t o r s h i p s   a n d   n o n e   o f   t h e 
m e m b e r s   o f   t h e   c o m m i t t e e   p a r t i c i p a t e   i n   a n y   b o n u s   s c h e m e s    p e n s i o n  
p l a n s    s h a r e   a w a r d s   o r   a n y   e m p l o y e e   s h a r e   s c h e m e s   i n   r e s p e c t   o f   t h e 
c o m p a n y      m e m b e r s   o f   t h e   c o m m i t t e e   h a v e   n o   d a y  t o  d a y  
i n v o l v e m e n t   i n   t h e   r u n n i n g   o f   t h e   c o m p a n y 
t h e   c o m m i t t e e   h a d   s i x   w o r k i n g   s e s s i o n s   d u r i n g   t h e   y e a r    w h i c h  
i n c l u d e d   f o u r   f o r m a l   m e e t i n g s       t o n y   c a m p b e l l   w a s   u n a b l e   t o   a t t e n d    
o n   o n e   o c c a s i o n   d u e   t o   p r i o r   c o m m i t m e n t s   
t h e   c o m m i t t e e   a d v i s e s   t h e   b o a r d   o n   o v e r a l l   r e m u n e r a t i o n   p o l i c y       
t h e   c o m m i t t e e   a l s o   d e t e r m i n e s    o n   b e h a l f   o f   t h e   b o a r d    a n d   w i t h   t h e 
b e n e f i t   o f   a d v i c e   f r o m   e x t e r n a l   c o n s u l t a n t s   a n d   m e m b e r s   o f   t h e   h u m a n  
r e s o u r c e s   d e p a r t m e n t    t h e   r e m u n e r a t i o n   o f   t h e   e x e c u t i v e   d i r e c t o r s  
a n d   o t h e r   m e m b e r s   o f   t h e   g r o u p   m a n a g e m e n t   b o a r d      t h e   a c t i v i t i e s   o f 
t h e   c o m m i t t e e   a r e   g o v e r n e d   b y   i t s   t e r m s   o f   r e f e r e n c e    w h i c h   h a v e  
b e e n   a p p r o v e d   b y   t h e   b o a r d   a n d   c a n   b e   f o u n d   o n   t h e   t u i   t r a v e l 
w e b s i t e   a t   w w w  t u i t r a v e l p l c  c o m
m a t e r i a l   a d v i c e   o r   s e r v i c e s   w e r e   p r o v i d e d   t o   t h e   c o m m i t t e e   d u r i n g    
t h e   y e a r   b y  
d e l o i t t e   l l p    d e l o i t t e  
h e r b e r t   s m i t h   l l p    h e r b e r t   s m i t h  
p e t e r   l o n g   –   c h i e f   e x e c u t i v e 
p a u l   b o w t e l l   –   c h i e f   f i n a n c i a l   o f f i c e r 
b i l l   l o g a n   –   g r o u p   h u m a n   r e s o u r c e s   d i r e c t o r    
d a v i d   h o u s e   –   g r o u p   r e w a r d   d i r e c t o r wwwtuitravelplccom
54  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
go v ernanc e
remuneration report c o n t i n u e d
t h e   g r o u p   h a s   p e r f o r m a n c e  r e l a t e d   r e w a r d   p o l i c i e s      t h e s e   a r e   d e s i g n e d  
t o   p r o v i d e   t h e   a p p r o p r i a t e   b a l a n c e   b e t w e e n   f i x e d   r e m u n e r a t i o n   a n d 
v a r i a b l e   ‘ a t  r i s k ’   r e w a r d   w h i c h   i s   l i n k e d   t o   t h e   p e r f o r m a n c e   o f   b o t h   t h e 
g r o u p   a n d   t h e   i n d i v i d u a l      g r o u p   p e r f o r m a n c e  r e l a t e d   m e a s u r e s   a r e 
c h o s e n   c a r e f u l l y   t o   e n s u r e   a   s t r o n g   l i n k   b e t w e e n   r e w a r d   a n d   t r u e 
u n d e r l y i n g   f i n a n c i a l   p e r f o r m a n c e      i n d i v i d u a l   p e r f o r m a n c e   i s   m e a s u r e d  
t h r o u g h   a n   a s s e s s m e n t   o f   c o m p r e h e n s i v e   b u s i n e s s   u n i t   d e l i v e r a b l e s   
m o d e l l i n g   t h e   g r o u p ’ s   v a l u e s   a n d   t h e   a c h i e v e m e n t   o f   s p e c i f i c   o b j e c t i v e s     
a t   a   m i n i m u m    t h e   i n d i v i d u a l   p e r f o r m a n c e   o f   t h e   e x e c u t i v e   d i r e c t o r s   i s 
a s s e s s e d   o n   a n   a n n u a l   b a s i s 
i n   a s s e s s i n g   l e v e l s   o f   p a y   a n d   b e n e f i t s    t u i   t r a v e l   c o m p a r e s   t h e 
p a c k a g e s   o f f e r e d   b y   d i f f e r e n t   g r o u p s   o f   c o m p a r a t o r   c o m p a n i e s       
t h e s e   g r o u p s   a r e   c h o s e n   h a v i n g   r e g a r d   t o   
•   f i n a n c i a l   s i z e   –   t u r n o v e r    p r o f i t s   a n d   m a r k e t   c a p i t a l i s a t i o n 
•   s c a l e   o f   b u s i n e s s   –   t h e   n u m b e r   o f   p e o p l e   e m p l o y e d 
•   d i v e r s i t y   a n d   c o m p l e x i t y   o f   b u s i n e s s e s 
•   g e o g r a p h i c a l   s p r e a d   o f   b u s i n e s s e s 
•   i n d u s t r y   t y p e    a n d
•   r e l e v a n c e   a s 
  –   a   p o t e n t i a l   s o u r c e   f o r   c a n d i d a t e s   f o r   r o l e s   w i t h i n   t h e   g r o u p    a n d
  –   a   p o t e n t i a l   t h r e a t   i n   r e s p e c t   o f   a t t r a c t i n g   t u i   t r a v e l   e x e c u t i v e s 
e x t e r n a l   c o n s u l t a n t s   a r e   u s e d   t o   a d v i s e   t h e   c o m m i t t e e   o n   t h e   s t r u c t u r e  
a n d   l e v e l   o f   p a y   a n d   b e n e f i t s   i n   t u i   t r a v e l ’ s   m a r k e t s 
fixed remuneration
annual incentive
longterm incentive
 
t h e   n o r m a l   p o l i c y   f o r   e x e c u t i v e   d i r e c t o r s   i s   t h a t    u s i n g   ‘ t a r g e t ’   o r  
‘ e x p e c t e d   v a l u e ’   c a l c u l a t i o n s    l o n g  t e r m   p e r f o r m a n c e   d r i v e s   6 0     
o f   t o t a l   a n n u a l   r e m u n e r a t i o n    e x c l u d i n g   b e n e f i t s    a n d   t h e   t o t a l 
p r o p o r t i o n   o f   p e r f o r m a n c e  r e l a t e d   r e m u n e r a t i o n    i n c l u d i n g   a n n u a l 
b o n u s    i s   7 0  
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  –   l o n g  t e r m   i n c e n t i v e s
base salary
t h e   s a l a r y   f o r   e a c h   e x e c u t i v e   d i r e c t o r   i s   b a s e d   o n   i n d i v i d u a l 
p e r f o r m a n c e   a n d   o n   i n f o r m a t i o n   f r o m   i n d e p e n d e n t   p r o f e s s i o n a l 
s o u r c e s   o n   t h e   s a l a r y   l e v e l s   f o r   s i m i l a r   j o b s   i n   g r o u p s   o f   c o m p a r a b l e  
c o m p a n i e s      t h i s   a p p r o a c h   i s   c o n s i s t e n t   w i t h   t h a t   u s e d   t o   d e t e r m i n e  
s a l a r y   a n d   b e n e f i t   l e v e l s   f o r   a l l   e m p l o y e e s   w i t h i n   t h e   g r o u p      i n t e r n a l  
r e l a t i v i t i e s   a n d   s a l a r y   l e v e l s   i n   t h e   w i d e r   e m p l o y m e n t   m a r k e t   a r e   a l s o  
t a k e n   i n t o   a c c o u n t 
i n   a c c o r d a n c e   w i t h   a   d e c i s i o n   t a k e n   b y   t h e   c o m m i t t e e   l a s t   y e a r   b a s e d  
u p o n   t h e   e c o n o m i c   c l i m a t e    e x e c u t i v e   d i r e c t o r s ’   b a s e   s a l a r i e s   w e r e   n o t  
i n c r e a s e d   a t   t h e   n o r m a l   a n n u a l   r e v i e w   i n   o c t o b e r   2 0 0 9   o r   o c t o b e r  
2 0 1 0      t h e   c o m m i t t e e   d o e s   n o t   a n t i c i p a t e   u n d e r t a k i n g   t h e   n e x t   n o r m a l  
a n n u a l   r e v i e w   p r i o r   t o   1   o c t o b e r   2 0 1 1 
b e n e f i t s   a r e   p r o v i d e d   t o   e x e c u t i v e   d i r e c t o r s   i n   a c c o r d a n c e   w i t h   t h e  
p r a c t i c e   a p p l y i n g   t o   o t h e r   e x e c u t i v e s   i n   t h e i r   g e o g r a p h i c   l o c a t i o n 
annual performance bonus
w i t h i n   t h e   a n n u a l   b o n u s   p l a n    c h a l l e n g i n g   p e r f o r m a n c e   g o a l s   a r e   s e t 
a n d   t h e s e   m u s t   b e   a c h i e v e d   b e f o r e   t h e   m a x i m u m   b o n u s   b e c o m e s  
p a y a b l e      t h e   a n n u a l   b o n u s   p l a n   m e a s u r e s   a r e   w e i g h t e d   h e a v i l y   t o   t h e  
g r o u p ’ s   f i n a n c i a l   p e r f o r m a n c e   a n d   t h e   b a l a n c e   t o   p e r s o n a l   o b j e c t i v e s     
t h e   m a x i m u m   b o n u s   o p p o r t u n i t y   f o r   e a c h   e x e c u t i v e   d i r e c t o r   v a r i e s   b y 
i n d i v i d u a l   b u t   w i l l   n o t   e x c e e d   1 7 5    o f   a n n u a l   b a s e   s a l a r y 
t h e   a n n u a l   p e r f o r m a n c e   b o n u s   a w a r d   m a y   b e   s e t t l e d   b y   s h a r e s   o r   
c a s h      a   r u l e   c h a n g e   d u r i n g   t h e   y e a r   a l l o w s   t h e   c o m m i t t e e    a t   i t s  
d i s c r e t i o n    t o   d e t e r m i n e   t h a t   a n y   a n n u a l   p e r f o r m a n c e   b o n u s   a w a r d   m a y  
b e   t r a n s f e r r e d   t o   t h e   p a r t i c i p a n t   o r   t o   a   g r o u p   p e n s i o n   s c h e m e   o r   t o 
t h e   t u i   t r a v e l   i n t e r n a t i o n a l   r e t i r e m e n t   s a v i n g   p l a n   o r   t o   a n y   o t h e r  
l o n g  t e r m   i n v e s t m e n t   p l a n   o r   a   c o m b i n a t i o n   o f   s o m e   o r   a l l   o f   t h e 
f o r e g o i n g      t h e   q u a n t u m   o f   a n y   t r a n s f e r   o t h e r   t h a n   i n   c a s h   w i l l   b e 
s u b j e c t   t o   a d j u s t m e n t   f o r   t a x   o r   s o c i a l   s e c u r i t y   d i f f e r e n c e s    i f   a n y    t o  
e n s u r e   c o s t   n e u t r a l i t y   f o r   t h e   c o m p a n y 
longterm incentives
deferred annual bonus scheme
a l l   e x e c u t i v e   d i r e c t o r s   a l s o   p a r t i c i p a t e   i n   t h e   d e f e r r e d   a n n u a l   b o n u s 
s c h e m e    d a b s    w h i c h   r e q u i r e s   a   m i n i m u m   o f   2 5    a n d   a   m a x i m u m    
o f   5 0    o f   a n y   a n n u a l   p e r f o r m a n c e   b o n u s   a w a r d   t o   b e   d e f e r r e d   i n t o  
s h a r e s      m a t c h i n g   s h a r e s   m a y   a l s o   b e   a w a r d e d   u p   t o   f o u r   t i m e s   t h e 
d e f e r r e d   a m o u n t   a n d   a r e   s u b j e c t   t o   t h e   a c h i e v e m e n t   o f   s t r e t c h i n g 
p e r f o r m a n c e   c o n d i t i o n s   o v e r   a   t h r e e  y e a r   p e r i o d      a w a r d s   o f   d e f e r r e d  
a n d   m a t c h i n g   s h a r e s   a r e   s u b j e c t   t o   f o r f e i t u r e   c o n d i t i o n s   u n t i l   t h e 
r e l e a s e   d a t e      t h e   e a r l i e s t   p o i n t   a t   w h i c h   t h e   s h a r e s   a r e   e l i g i b l e   f o r  
r e l e a s e   i s   a t   t h e   e n d   o f   t h r e e   y e a r s   f o l l o w i n g   d e f e r r a l      f o l l o w i n g   a    
d a b s   r u l e   c h a n g e   d u r i n g   t h e   y e a r    t h e   a c t u a l   r e l e a s e   d a t e   f o r   a w a r d s  
m a d e   o n   o r   a f t e r   1   d e c e m b e r   2 0 0 9   i s   n o w   d e t e r m i n e d   b y   t h e  
r e m u n e r a t i o n   c o m m i t t e e   a t   i t s   d i s c r e t i o n      p a r t i c i p a n t s   m a y   m a k e   a 
r e q u e s t   t o   t h e   c o m m i t t e e   f o r   a n   i s s u e   o r   t r a n s f e r   o f   t h e s e   a w a r d s   t w i c e  
p e r   y e a r   o n c e   p e r f o r m a n c e   c o n d i t i o n s   h a v e   b e e n   s a t i s f i e d   a n d   t h e  
a w a r d s   h a v e   v e s t e d    a l t h o u g h   t h e   c o m m i t t e e   i s   n o t   o b l i g e d   t o   c o m p l y  
w i t h   t h e s e   r e q u e s t s      t h e   a c t u a l   r e l e a s e   d a t e   f o r   a w a r d s   m a y   b e   n o  
l a t e r   t h a n   t e n   y e a r s   f o l l o w i n g   d e f e r r a l  group at a glance strategic overview business performance governance financial statements shareholder information
 
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  55
f o r   a w a r d s   o f   m a t c h i n g   s h a r e s   m a d e   d u r i n g   t h e   y e a r    n o   s h a r e s   w i l l   v e s t  
u n l e s s   t h e   a n n u a l   a v e r a g e   o f   t h e   r a t i o   o f   t h e   g r o u p ’ s   r e t u r n   o n   i n v e s t e d  
c a p i t a l    r o i c    t o   t h e   w e i g h t e d   a v e r a g e   c o s t   o f   c a p i t a l    w a c c    m e e t s   o r 
e x c e e d s   o n e   o v e r   t h e   t h r e e  y e a r   p e r i o d      a   h u r d l e   o f   r o i c    b e i n g   a t 
l e a s t   e q u a l   t o   w a c c    i s   u s e d   t o   e n s u r e   t h a t   t h e   r e l e v a n t   l o n g  t e r m 
i n c e n t i v e   a w a r d s   p a y   o u t   o n l y   w h e n   s h a r e h o l d e r   v a l u e   i s   b e i n g   c r e a t e d  
o v e r   t h e   p e r f o r m a n c e   p e r i o d s      i f   t h e   r o i c  w a c c   h u r d l e   i s   m e t    s h a r e s  
w i l l   o n l y   v e s t   t o   t h e   e x t e n t   t o   w h i c h   t w o   f u r t h e r   p e r f o r m a n c e   c o n d i t i o n s  
a r e   s a t i s f i e d   o v e r   t h e   t h r e e  y e a r   p e r i o d   a s   f o l l o w s 
•   u p   t o   t h r e e  q u a r t e r s   o f   t h e   m a t c h i n g   s h a r e s   w i l l   v e s t   b a s e d   o n 
g r o w t h   i n   t h e   g r o u p ’ s   e a r n i n g s   p e r   s h a r e    e p s     b e f o r e   a m o r t i s a t i o n  
o f   m e r g e r   i n t a n g i b l e s    g o o d w i l l   i m p a i r m e n t   a n d   s e p a r a t e l y   d i s c l o s e d  
i t e m s    i n   r e l a t i o n   t o   t h e   g r o w t h   i n   t h e   u k   r e t a i l   p r i c e   i n d e x    r p i    a s 
s h o w n   i n   t h e   t a b l e   b e l o w 
average annual eps  growth in excess of rpi growth   proportion of  matching shares  vesting
below 4   0
between 4 and  13    on a straightline basis   
between  10  and 100
13  or  above   100
•   u p   t o   o n e  q u a r t e r   o f   t h e   m a t c h i n g   s h a r e s   w i l l   v e s t   b a s e d   o n   t h e  
g r o u p ’ s   r a n k i n g   o f   t o t a l   s h a r e h o l d e r   r e t u r n    t s r    p e r f o r m a n c e  
r e l a t i v e   t o   c o m p a n i e s   r a n k e d   3 0 t h   t o   1 0 0 t h   b y   m a r k e t   c a p i t a l i s a t i o n  
a s   a t   t h e   d a t e   o f   t h e   a w a r d   a s   s h o w n   i n   t h e   t a b l e   b e l o w 
tsr  ranking  proportion of  matching shares  vesting
below median  0
between median  and upper quartile    on a straightline basis 
between 15  and 100
at  or above upper quartile  100
m a t c h i n g   s h a r e   a w a r d s   l a p s e   i f   t h e   p e r f o r m a n c e   c o n d i t i o n s   a r e   
n o t   m e t 
performance share plan
t h e   p e r f o r m a n c e   s h a r e   p l a n    p s p    a l l o w s   e x e c u t i v e   d i r e c t o r s   a n d 
e l i g i b l e   p a r t i c i p a n t s   t o   r e c e i v e   s h a r e   a w a r d s    s u b j e c t   t o   t h e   s a t i s f a c t i o n  
o f   p e r f o r m a n c e   c o n d i t i o n s   s e t   b y   t h e   c o m m i t t e e    w h i c h   a r e   n o r m a l l y 
m e a s u r e d   o v e r   a   t h r e e  y e a r   p e r i o d      o n c e   v e s t e d    p s p   s h a r e s   a r e 
s u b j e c t   t o   f o r f e i t u r e   c o n d i t i o n s   u n t i l   t h e   r e l e a s e   d a t e      t h e   e a r l i e s t   p o i n t  
a t   w h i c h   t h e   s h a r e s   a r e   e l i g i b l e   f o r   r e l e a s e   i s   t h e   t h i r d   a n n i v e r s a r y   o f   t h e  
a w a r d   d a t e      f o l l o w i n g   a   p s p   r u l e   c h a n g e   d u r i n g   t h e   y e a r    f o r   a w a r d s  
m a d e   o n   o r   a f t e r   1   d e c e m b e r   2 0 0 9    t h e   a c t u a l   r e l e a s e   d a t e   i s 
d e t e r m i n e d   b y   t h e   r e m u n e r a t i o n   c o m m i t t e e   a t   i t s   d i s c r e t i o n    
p a r t i c i p a n t s   m a y   m a k e   a   r e q u e s t   t o   t h e   c o m m i t t e e   f o r   a n   i s s u e   o r 
t r a n s f e r   o f   t h e s e   a w a r d s   t w i c e   p e r   y e a r   o n c e   p e r f o r m a n c e   c o n d i t i o n s  
h a v e   b e e n   s a t i s f i e d   a n d   t h e   a w a r d s   h a v e   v e s t e d    a l t h o u g h   t h e 
c o m m i t t e e   i s   n o t   o b l i g e d   t o   c o m p l y   w i t h   t h e s e   r e q u e s t s      t h e   a c t u a l  
r e l e a s e   d a t e   f o r   a w a r d s   m a y   b e   n o   l a t e r   t h a n   1 0   y e a r s   f o l l o w i n g  
d e f e r r a l      a w a r d s   a r e   n o r m a l l y   m a d e   a n n u a l l y   a n d    e x c e p t   i n   
e x c e p t i o n a l   c i r c u m s t a n c e s    w i l l   n o t   e x c e e d   t w o   t i m e s   a n n u a l   s a l a r y   
f o r   e x e c u t i v e   d i r e c t o r s 
f o r   a w a r d s   m a d e   d u r i n g   t h e   y e a r    n o   s h a r e s   w i l l   v e s t   u n l e s s   t h e   a n n u a l  
a v e r a g e   o f   t h e   r a t i o   o f   t h e   g r o u p ’ s   r o i c   t o   t h e   w a c c   m e e t s   o r  
e x c e e d s   o n e   o v e r   t h e   t h r e e  y e a r   p e r i o d 
i f   t h e   r o i c  w a c c   h u r d l e   i s   m e t    s h a r e s   w i l l   o n l y   v e s t   t o   t h e   e x t e n t   t o 
w h i c h   t w o   f u r t h e r   p e r f o r m a n c e   c o n d i t i o n s   a r e   s a t i s f i e d   o v e r   t h e   t h r e e 
y e a r   p e r i o d   a s   f o l l o w s 
•   u p   t o   h a l f   o f   t h e   s h a r e s   w i l l   v e s t   b a s e d   o n   g r o w t h   i n   t h e   g r o u p ’ s  
e p s    b e f o r e   a m o r t i s a t i o n   o f   m e r g e r   i n t a n g i b l e s    g o o d w i l l   i m p a i r m e n t  
a n d   s e p a r a t e l y   d i s c l o s e d   i t e m s    i n   r e l a t i o n   t o   t h e   g r o w t h   i n   t h e   u k 
r p i   a s   s h o w n   i n   t h e   t a b l e   b e l o w 
average  annual eps growth  in excess of rpi growth  proportion  of  shares vesting
below 4  0
between  4  and 13    on  a  straightline basis 
between  10 and  100
13  or  above   100
•   u p   t o   h a l f   o f   t h e   m a t c h i n g   s h a r e s   w i l l   v e s t   b a s e d   o n   t h e   g r o u p ’ s 
r a n k i n g   o f   t o t a l   s h a r e h o l d e r   r e t u r n    t s r    p e r f o r m a n c e   r e l a t i v e   t o 
c o m p a n i e s   r a n k e d   3 0 t h   t o   1 0 0 t h   b y   m a r k e t   c a p i t a l i s a t i o n   a s   a t   t h e 
d a t e   o f   t h e   a w a r d   a s   s h o w n   i n   t h e   t a b l e   b e l o w 
tsr ranking  proportion  of  shares vesting
below median  0
between  median and  upper quartile    on  a  straightline basis 
between  15 and  100
at  or above upper  quartile  100
a w a r d s   u n d e r   t h e   p e r f o r m a n c e   s h a r e   p l a n   l a p s e   i f   t h e   p e r f o r m a n c e  
c o n d i t i o n s   a r e   n o t   m e t 
t h e   c o m m i t t e e   c o n s i d e r s   t h a t   e p s   a n d   t s r   a r e   t h e   k e y   p e r f o r m a n c e  
c o n d i t i o n s   t h a t   a r e   m o s t   r e l e v a n t   t o   t h e   g r o u p      e p s   i s   a   k e y   i n d i c a t o r    
o f   t h e   g r o u p ’ s   u n d e r l y i n g   f i n a n c i a l   p e r f o r m a n c e   w h i l s t   t s r   i s   a   r e l a t i v e  
m e a s u r e   o f   s h a r e h o l d e r   v a l u e   c r e a t i o n      a   h u r d l e   o f   r o i c    b e i n g   a t   l e a s t  
e q u a l   t o   w a c c    i s   u s e d   t o   e n s u r e   t h a t   t h e   r e l e v a n t   l o n g  t e r m   i n c e n t i v e  
a w a r d s   p a y   o u t   o n l y   w h e n   s h a r e h o l d e r   v a l u e   i s   b e i n g   c r e a t e d   o v e r   t h e 
p e r f o r m a n c e   p e r i o d s 
a   f u r t h e r   r u l e   c h a n g e   d u r i n g   t h e   y e a r   a l l o w s   t h e   c o m m i t t e e   a t   i t s 
d i s c r e t i o n   t o   d e t e r m i n e   t h a t   a n y   d a b s   o r   p s p   a w a r d   m a d e   o n   o r   a f t e r  
1   d e c e m b e r   2 0 0 9   m a y   b e   s e t t l e d   o n   t h e   r e l e a s e   d a t e   b y   a   t r a n s f e r   o f 
s h a r e s   o r   c a s h   t o   t h e   p a r t i c i p a n t   o r   t o   a   g r o u p   p e n s i o n   s c h e m e   o r   t o 
t h e   t u i   t r a v e l   i n t e r n a t i o n a l   r e t i r e m e n t   s a v i n g   p l a n   o r   t o   a n y   o t h e r   
l o n g  t e r m   i n v e s t m e n t   p l a n   o r   a   c o m b i n a t i o n   o f   s o m e   o r   a l l   o f   t h e 
f o r e g o i n g      t h e   q u a n t u m   o f   a n y   t r a n s f e r   o t h e r   t h a n   i n   s h a r e s   w i l l   b e 
e q u a l   t o   t h e   m a r k e t   v a l u e   o f   e a c h   v e s t e d   s h a r e   a s   a t   t h e   r e l e a s e   d a t e  
s u b j e c t   t o   a d j u s t m e n t   f o r   t a x   o r   s o c i a l   s e c u r i t y   d i f f e r e n c e s    i f   a n y    t o 
e n s u r e   c o s t   n e u t r a l i t y   f o r   t h e   c o m p a n y 
allemployee share schemes
e x e c u t i v e   d i r e c t o r s   b a s e d   i n   t h e   u k   a r e   e l i g i b l e   t o   p a r t i c i p a t e   i n    
t h e   h m r c  a p p r o v e d   s h a r e   i n c e n t i v e   p l a n   w h i c h   i s   a n   a l l  e m p l o y e e  
s h a r e   s c h e m e   e n a b l i n g   s t a f f   t o   a c q u i r e   s h a r e s   i n   t h e   c o m p a n y   o n 
p r e f e r e n t i a l   t e r m s      t o   f u r t h e r   e n c o u r a g e   e m p l o y e e   s h a r e h o l d i n g   
i n   t h e   c o m p a n y    t h e   s h a r e   i n c e n t i v e   p l a n   p r o v i d e s   a   m a t c h i n g    
s h a r e   f o r   e v e r y   f o u r   s h a r e s   b o u g h t   b y   a   p a r t i c i p a n t   u n d e r   t h e   p l a n     
m a t c h i n g   s h a r e s   a r e   n o t   s u b j e c t   t o   p e r f o r m a n c e   c o n d i t i o n s 
shareholding guidelines
t h e   e x e c u t i v e   d i r e c t o r s   w i l l   b e   e x p e c t e d   t o   b u i l d    w i t h i n   f i v e   y e a r s    
o f   t h e i r   a p p o i n t m e n t    a n d   t h e n   m a i n t a i n    a   s h a r e h o l d i n g   e q u a l   i n   
v a l u e   t o   1  5   t i m e s   t h e i r   b a s i c   s a l a r y   o r   t w o   t i m e s   i n   t h e   c a s e   o f   t h e   
c h i e f   e x e c u t i v e 
n o   n e w   s h a r e s   w e r e   i s s u e d   d u r i n g   t h e   y e a r   a n d   t h e r e f o r e   t h e   c o m p a n y  
h a s   r e m a i n e d   w i t h i n   i t s   h e a d r o o m   l i m i t s   f o r   t h e   i s s u e   o f   n e w   s h a r e s  
u n d e r   s h a r e   i n c e n t i v e   s c h e m e s      a l l   s h a r e   i n c e n t i v e   a w a r d s   m a d e    a n d    
a l l   f u t u r e   s h a r e   i n c e n t i v e   a w a r d s    w i l l   n o r m a l l y   b e   s e t t l e d   w i t h   s h a r e s  
p u r c h a s e d   i n   t h e   m a r k e t 
policy on pensions
e a c h   o f   t h e   u k  b a s e d   e x e c u t i v e   d i r e c t o r s   a n d   s e n i o r   e x e c u t i v e s  
p a r t i c i p a t e s   i n   a   d e f i n e d   c o n t r i b u t i o n   r e t i r e m e n t   o r   l o n g  t e r m  
i n v e s t m e n t   s c h e m e  wwwtuitravelplccom
56  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
go v ernanc e
remuneration report c o n t i n u e d
t h e   g r o u p ’ s   p e n s i o n   p o l i c y   i s   t h a t    i n   t h e   e v e n t   t h a t   a   p a r t i c i p a n t    
i n   a   r e g i s t e r e d   p e n s i o n   s c h e m e   m a y   r e a c h   o r   e x c e e d   h m r c   l i f e t i m e    
o r   a n n u a l   t h r e s h o l d s    t h e y   h a v e   a   c h o i c e   n o t   t o   a c c e p t   f u r t h e r  
r e g i s t e r e d   p e n s i o n   c o n t r i b u t i o n s      o n   m a k i n g   t h i s   c h o i c e   t h e   i n d i v i d u a l 
w i l l   b e   o f f e r e d   i n   l i e u   a   c o n t r i b u t i o n   t o   a n   u n r e g i s t e r e d   l o n g  t e r m  
i n v e s t m e n t   s c h e m e   o r   a   n o n  p e n s i o n a b l e   c a s h   p a y m e n t    e q u i v a l e n t   t o 
t h e   g r o u p ’ s   c o n t r i b u t i o n   t o   t h e   r e g i s t e r e d   p e n s i o n   s c h e m e      p e n s i o n  
s c h e m e   p a r t i c i p a n t s   w i l l   n o t   b e   c o m p e n s a t e d   f o r   a n y   a d v e r s e   t a x  
c o n s e q u e n c e s   o f   e x c e e d i n g   t h e   h m r c   l i f e t i m e   a l l o w a n c e   l i m i t 
e x e c u t i v e   d i r e c t o r s    a n d   s e n i o r   e x e c u t i v e s   o u t s i d e   o f   t h e   u k    p a r t i c i p a t e  
i n   l o c a l   p e n s i o n   p l a n s 
policy on external appointments
t h e   c o m p a n y   r e c o g n i s e s   t h a t   i t s   d i r e c t o r s   m a y   b e   i n v i t e d   t o   b e c o m e  
n o n  e x e c u t i v e   d i r e c t o r s   o f   o t h e r   c o m p a n i e s   a n d   t h a t   s u c h   d u t i e s   c a n  
b r o a d e n   e x p e r i e n c e   a n d   k n o w l e d g e   a n d   b e n e f i t   t h e   b u s i n e s s      s u b j e c t   
t o   t h e   a p p r o v a l   o f   t h e   b o a r d    e x e c u t i v e   d i r e c t o r s   a r e    t h e r e f o r e    a l l o w e d 
t o   a c c e p t   n o n  e x e c u t i v e   a p p o i n t m e n t s   a n d   t o   r e t a i n   t h e   f e e s   r e c e i v e d  
 e x c l u d i n g   p o s i t i o n s   w h e r e   t h e   d i r e c t o r   i s   a p p o i n t e d   a s   t h e   c o m p a n y ’ s  
r e p r e s e n t a t i v e    a s   l o n g   a s   t h i s   i s   n o t   l i k e l y   t o   l e a d   t o   a   c o n f l i c t   o f   i n t e r e s t 
f o r   t h e   y e a r   e n d e d   3 0   s e p t e m b e r   2 0 1 0    p e t e r   l o n g   r e c e i v e d   a n d  
r e t a i n e d   n o n  e x e c u t i v e   d i r e c t o r s ’   f e e s   i n   r e s p e c t   o f   a n   a p p o i n t m e n t  
w i t h   r e n t o k i l   i n i t i a l   p l c   –    f t s e   1 0 0    o f   £ 7 5  0 0 0    2 0 0 9    £ 9 7  5 0 0   –   h e 
r e s i g n e d   a s   a   d i r e c t o r   o f   d e b e n h a m s   p l c   i n   a u g u s t   2 0 0 9       p a u l   b o w t e l l  
r e c e i v e d   a n d   r e t a i n e d   n o n  e x e c u t i v e   d i r e c t o r   f e e s   i n   r e s p e c t   o f   h i s   t w o  
a p p o i n t m e n t s   –   c a p i t a   g r o u p   p l c   –    f t s e   1 0 0    f r o m   2 8   j u n e   2 0 1 0    
a n d   s t h r e e   p l c    a   s m a l l   c a p   c o m p a n y    o f   £ 5 5  6 8 2    2 0 0 9    £ 4 0  0 0 0  
performance graph
t u i   t r a v e l   s h a r e s   w e r e   l i s t e d   o n   t h e   l o n d o n   s t o c k   e x c h a n g e   o n   
3   s e p t e m b e r   2 0 0 7      s i n c e   d e c e m b e r   2 0 0 7    t h e   c o m p a n y   h a s   b e e n    
a   m e m b e r   o f   t h e   f t s e   1 0 0   i n d e x      t h e   g r a p h   b e l o w   m e a s u r e s   t h e 
p e r f o r m a n c e   o f   f i r s t   c h o i c e   h o l i d a y s   p l c   u p   t o   t h e   m e r g e r    a n d 
s u b s e q u e n t l y   t h e   p e r f o r m a n c e   o f   t u i   t r a v e l   p l c    a s s u m i n g   d i v i d e n d s 
a r e   r e i n v e s t e d    c o m p a r e d   w i t h   t h e   t s r   p e r f o r m a n c e   a c h i e v e d   a g a i n s t  
t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   a n d   s e p a r a t e l y   
t h o s e   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n      t h e   l a t t e r   i n d e x   i s 
c o n s i d e r e d   t o   b e   t h e   m o s t   a p p r o p r i a t e   b e n c h m a r k   f o r   c o m p a r i s o n 
p u r p o s e s   a n d   i s   u s e d   w i t h i n   t h e   p e r f o r m a n c e   m e a s u r e s   o f   t h e 
c o m p a n y ’ s   l o n g  t e r m   i n c e n t i v e   s c h e m e s 
contracts of service
executive directors
t h e   r e m u n e r a t i o n   c o m m i t t e e ’ s   p o l i c y   i s   f o r   e x e c u t i v e   d i r e c t o r s   t o   h a v e  
r o l l i n g   c o n t r a c t s   w i t h   a   1 2  m o n t h   n o t i c e   p e r i o d     
v o l k e r   b ö t t c h e r    p a u l   b o w t e l l    p e t e r   l o n g    j o h a n   l u n d g r e n   a n d   w i l l i a m  
w a g g o t t   c u r r e n t l y   h a v e   s e r v i c e   a g r e e m e n t s   w i t h   a   1 2  m o n t h   n o t i c e  
p e r i o d   a n d   i t   i s   i n t e n d e d   t h a t   a l l   n e w   a p p o i n t m e n t s   w i l l   a l s o   h a v e    
1 2  m o n t h   n o t i c e   p e r i o d s      h o w e v e r    o n   o c c a s i o n    t o   c o m p l e t e   a n 
e x t e r n a l   r e c r u i t m e n t   s u c c e s s f u l l y    a   l o n g e r   i n i t i a l   p e r i o d   m a y   b e   u s e d 
r e d u c i n g   t o   1 2   m o n t h s    f o l l o w i n g   g u i d a n c e   i n   t h e   c o m b i n e d   c o d e     
n o   p r o v i s i o n s   f o r   c o m p e n s a t i o n   f o r   t e r m i n a t i o n   f o l l o w i n g   c h a n g e   o f 
c o n t r o l    o r   f o r   l i q u i d a t e d   d a m a g e s   o f   a n y   k i n d    a r e   i n c l u d e d   i n   t h e 
c u r r e n t   d i r e c t o r s ’   c o n t r a c t s      i n   t h e   e v e n t   o f   a n y   e a r l y   t e r m i n a t i o n    
o f   a n   e x e c u t i v e   d i r e c t o r ’ s   c o n t r a c t    t h e   p o l i c y   i s   t o   s e e k   t o   m i n i m i s e   
a n y   l i a b i l i t y     
  effective date    
executive  director   of contract  notice period
dr volker böttcher  5 september  2007  12
paul bowtell  7  april 2008  12
peter  long  19  february  2008  12
johan  lundgren  20  march 2009  12
william  waggott  22  april 2008  12
nonexecutive directors
  effective date   
nonexecutive  director  of  appointment  notice period
horst  baier   13 october 2009  6
tony  campbell  3 september  2010  3
clare  chapman   3 september  2010  3
bill  dalton   3 september  2010  3
rainer  feuerhake  3 september  2010  3
dr  michael frenzel  3 september  2010  3
jeremy hicks  3 september  2010  3
sir  michael  hodgkinson  3  september  2010  3
giles  thorley  3 september  2010  3
dr  erhard schipporeit  29  october 2010  3
dr  albert schunk  29  october 2010  3
harold  sher  29  october 2010  3
t h e   i n f o r m a t i o n   p r o v i d e d   i n   t h e   f o l l o w i n g   p a g e s   o f   t h i s   r e p o r t   h a s   b e e n 
a u d i t e d   b y   k p m g   a u d i t   p l c 
tui travel plc
ftse 100
ftse 30100
total shareholder return
tui travel plc v ftse 100  ftse 30300
200
150
100
50
tui travel plc shares
listed 030907
300905 300906 300907 300908 300909 300910  group at a glance strategic overview business performance governance financial statements shareholder information
 
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  57
directors’ remuneration
      total  remuneration  
    performance payments   excluding  pensions
 
      value     for the year   for the  year
      creation    ended   ended
  basic  salaries  annual   synergy     30 september   30  september
  and fees   bonus
1
  plan
2
  benefits
3
  2010   2009
  £000  £000  £000  £000  £000   £000
executive directors
dr volker  böttcher
4
  474  –   336  17 827   891 
paul bowtell  490  –  506  16 1012   1053 
peter long  850  –  1200  16 2066   2122 
johan lundgren  605  –  618  183 1406   1437 
william waggott
5
  460  –  639   16 1115   881 
nonexecutive directors      
horst baier  55   –    – 55   –  
tony campbell  55   –    – 55   55 
clare chapman   65   –    – 65   65 
bill  dalton  55   –    – 55   55 
rainer  feuerhake  55   –    – 55   55 
dr michael frenzel chairman  300  –    – 300   300  
jeremy  hicks  70  –    – 70  70 
sir  michael hodgkinson deputy chairman   200  –    – 200   200 
dr  erhard  schipporeit  55   –     – 55  55 
dr  albert schunk   55   –     – 55  55 
harold  sher  55   –     – 55  55 
giles thorley   55   –     – 55  55 
total   3954  –  3299   248 7501   7404
1     ‘ a n n u a l   b o n u s ’   f i g u r e s   i n c l u d e   b o n u s   a w a r d s   i n   c a s h   i n   r e s p e c t   o f   p a r t i c i p a t i o n   i n   t h e   a n n u a l   b o n u s   p l a n   b u t   e x c l u d e   b o n u s   a w a r d s   i n   d e f e r r e d   s h a r e s    d e t a i l s   o f   w h i c h   a r e   s e t   o u t   o n   p a g e   5 8      
i n   r e s p e c t   o f   t h e i r   p a r t i c i p a t i o n   i n   t h e   a n n u a l   b o n u s   p l a n    t h e   e x e c u t i v e   d i r e c t o r s   d i d   n o t   r e c e i v e   a   c a s h   b o n u s   f o r   t h e   y e a r      n o t w i t h s t a n d i n g   t h e   f a c t   t h a t   t h e   u n d e r l y i n g   e b i t   a n d   c a s h  f l o w   m e a s u r e s  
w e r e   m e t   i n   f u l l    t h e   r e m u n e r a t i o n   c o m m i t t e e   d e c i d e d   t h a t    i n   t h e   c o n t e x t   o f   a n   a p p r o p r i a t e   c l a w  b a c k   o f   p r i o r   y e a r   b o n u s   d u e   t o   t h e   p r o f i t   r e s t a t e m e n t   a n d   s u b s t a n t i a l   o n e  o f f   c o s t s   d u r i n g   t h e   y e a r     
a   c a s h   b o n u s   w o u l d   n o t   b e   p a y a b l e 
2     ‘ v a l u e   c r e a t i o n   s y n e r g y   p l a n ’   f i g u r e s   r e l a t e   t o   t h e   t h i r d   a n d   f i n a l   a w a r d   f r o m   t h i s   o n e  o f f   t h r e e  y e a r   s c h e m e   w h i c h   i n   a c c o r d a n c e   w i t h   t h e   s c h e m e   d e s i g n   w a s   d u e   t o   b e   s e t t l e d   i n   c a s h      f u r t h e r   d e t a i l s   
o f   t h i s   s c h e m e   a r e   s e t   o u t   o n   p a g e   6 1      s y n e r g y   p e r f o r m a n c e   a t   t h e   e n d   o f   t h e   t h i r d   y e a r   w a s   £ 1 9 5 m   c o m p a r e d   t o   t h e   t a r g e t   l e v e l   o f   £ 1 0 0 m   a n d   t h e   m a x i m u m   l e v e l   o f   £ 1 5 0 m      f u r t h e r   d e t a i l s   a b o u t 
s y n e r g y   p e r f o r m a n c e   a r e   s e t   o u t   o n   p a g e   6 1      t h e   f i n a l   c a s h   a w a r d   w a s   t h e r e f o r e   m a d e   a t   t h e   m a x i m u m   l e v e l   f o r   m e s s r s   b ö t t c h e r    b o w t e l l    l o n g    l u n d g r e n   a n d   w a g g o t t 
3     ‘ b e n e f i t s ’   i n c o r p o r a t e   a l l   t a x   a s s e s s a b l e   b e n e f i t s   a r i s i n g   f r o m   t h e   i n d i v i d u a l ’ s   e m p l o y m e n t      f o r   m e s s r s   b o w t e l l    l o n g   a n d   w a g g o t t    t h i s   r e l a t e s   i n   t h e   m a i n   t o   t h e   p r o v i s i o n   o f   a   f u l l y   e x p e n s e d   c o m p a n y   
c a r   o r   c a r   a l l o w a n c e   a n d   p r i v a t e   h e a l t h c a r e   c o v e r    a n d   f o r   m r   b ö t t c h e r   t h e   p r o v i s i o n   o f   a   f u l l y   e x p e n s e d   c o m p a n y   c a r   o r   c a r   a l l o w a n c e      i n   a d d i t i o n   t o   t h e   p r o v i s i o n   o f   a   f u l l y   e x p e n s e d   c o m p a n y   c a r   o r   
c a r   a l l o w a n c e   a n d   p r i v a t e   h e a l t h c a r e   c o v e r    m r   l u n d g r e n   r e c e i v e d   h o u s i n g   a n d   e d u c a t i o n   b e n e f i t s   a s   p a r t   o f   t h e   o n g o i n g   s u p p o r t   r e l a t i n g   t o   h i s   r e l o c a t i o n   t o   t h e   u k   f r o m   s w e d e n   o n   1   a u g u s t   2 0 0 9 
4     i n   c a l c u l a t i n g   r e m u n e r a t i o n   f o r   m r   b ö t t c h e r    p a y m e n t s   m a d e   d u r i n g   t h e   y e a r   i n   e u r   h a v e   b e e n   c o n v e r t e d   a t   1  1 5   t o   1   g b p    b e i n g   t h e   a v e r a g e   e x c h a n g e   r a t e   f o r   t h e   p e r i o d   1   o c t o b e r   2 0 0 9   t o 
3 0   s e p t e m b e r   2 0 1 0 
5     o n   1   j a n u a r y   2 0 1 0   m r   w a g g o t t ’ s   s a l a r y   i n c r e a s e d   f r o m   £ 4 3 0  0 0 0   t o   £ 4 7 0  0 0 0   h o w e v e r   h i s   p e n s i o n   c o n t r i b u t i o n   r e d u c e d   f r o m   5 0    o f   b a s e   s a l a r y   t o   3 3    o f   b a s e   s a l a r y   a t   t h e   s a m e   t i m e      
t h i s   c h a n g e   w a s   a s   a   r e s u l t   o f   h i m   t a k i n g   e x e c u t i v e   r e s p o n s i b i l i t y   f o r   t h e   a c c o m m o d a t i o n      d e s t i n a t i o n s   s e c t o r   a n d   r e s t r u c t u r i n g   h i s   o v e r a l l   p a c k a g e   i n   f a v o u r   o f   v a r i a b l e   p e r f o r m a n c e   r e l a t e d   p a y  wwwtuitravelplccom
58  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
directors’ pensions
d u r i n g   t h e   y e a r   a   c o n t r i b u t i o n   e q u a l   t o   5 0    a n d   3 3    o f   b a s e   s a l a r y   h a s   b e e n   m a d e   i n t o   t h e   t u i   t r a v e l   i n t e r n a t i o n a l   r e t i r e m e n t   s a v i n g   p l a n   f o r  
t h e   b e n e f i t   o f   p e t e r   l o n g   a n d   j o h a n   l u n d g r e n   r e s p e c t i v e l y      a   c o n t r i b u t i o n   e q u a l   t o   2 5    o f   b a s e   s a l a r y   h a s   b e e n   m a d e   i n t o   d e f i n e d   c o n t r i b u t i o n 
p e n s i o n   s c h e m e   f o r   t h e   b e n e f i t   o f   p a u l   b o w t e l l 
f o r   t h e   p e r i o d   1   o c t o b e r   2 0 0 9   t o   3 1   d e c e m b e r   2 0 0 9   a   c o n t r i b u t i o n   e q u a l   t o   5 0    o f   b a s e   s a l a r y   p r o   r a t a   a n d   f o r   t h e   p e r i o d   1   j a n u a r y   2 0 1 0   
t o   3 0   s e p t e m b e r   2 0 1 0   a   c o n t r i b u t i o n   o f   3 3    o f   b a s e   s a l a r y   p r o   r a t a   h a s   b e e n   m a d e   i n t o   a   d e f i n e d   c o n t r i b u t i o n   s c h e m e   f o r   t h e   b e n e f i t   o f    
w i l l i a m   w a g g o t t 
i n   a d d i t i o n    w i l l i a m   w a g g o t t   h a s   d e f e r r e d   p e n s i o n   e n t i t l e m e n t s   u n d e r   t h e   d e f i n e d   b e n e f i t   s e c t i o n   o f   t h e   t u i   p e n s i o n   s c h e m e    u k       h e   c e a s e d    
t o   b e   a n   a c t i v e   m e m b e r   o f   t h e   d e f i n e d   b e n e f i t   s e c t i o n   o n   3   s e p t e m b e r   2 0 0 7   a n d    t h e r e f o r e    n o   i n c r e a s e   i n   a c c r u e d   b e n e f i t   h a s   o c c u r r e d   d u r i n g    
t h e   y e a r 
t h e   n o r m a l   r e t i r e m e n t   d a t e   f o r   t h e   u k  b a s e d   e x e c u t i v e   d i r e c t o r s   a n d   s e n i o r   e x e c u t i v e s   i s   6 5 
i n   t h e   e v e n t   o f   d e a t h   i n   s e r v i c e    t h e   e x e c u t i v e   d i r e c t o r s ’   a n d   s e n i o r   e x e c u t i v e s ’   p e n s i o n   a r r a n g e m e n t s   p r o v i d e   l u m p   s u m s   f o r   t h e   p u r c h a s e   o f 
d e p e n d a n t s ’   p e n s i o n s   o f   t h e   g r e a t e r   o f   e i g h t   t i m e s   s a l a r y   o r   t h e   v a l u e   o f   t h e   p e n s i o n   f u n d   i n   a d d i t i o n   t o   w h i c h   a   l u m p   s u m   o f   f o u r   t i m e s   s a l a r y    
i s   p a y a b l e      f o l l o w i n g   t h e   c h a n g e s   t o   t h e   t a x   r u l e s   f r o m   a p r i l   2 0 0 6    a n y   d e p e n d a n t ’ s   p e n s i o n   m a y   b e   p a i d   a s   a n   a d d i t i o n a l   l u m p   s u m   s u b j e c t   t o 
h m r c   l i m i t s 
d r   v o l k e r   b ö t t c h e r   p a r t i c i p a t e s   i n   s e p a r a t e   p e n s i o n   a r r a n g e m e n t s   i n   g e r m a n y   a t   a   c o s t   o f   2 5    o f   b a s e   s a l a r y 
pension contributions for directors
          p e n s i o n   c o n t r i b u t i o n s   o r   a l l o w a n c e   f o r 
           the year ended 30  september  2010  
executive  director          £000
dr volker böttcher             118
paul  bowtell             123
peter  long             425
johan  lundgren            200
william waggott            170
total             1036
t o t a l   p e n s i o n   c o n t r i b u t i o n s   o r   a l l o w a n c e s   f o r   t h e   y e a r   e n d e d   3 0   s e p t e m b e r   2 0 1 0   w e r e   £ 1  0 3 6 m      i n   c a l c u l a t i n g   t h i s   t o t a l    p a y m e n t s   m a d e   i n    
e u r   h a v e   b e e n   c o n v e r t e d   a t   1  1 5   t o   1   g b p    b e i n g   t h e   a v e r a g e   e x c h a n g e   r a t e   f o r   t h e   y e a r   e n d e d   3 0   s e p t e m b e r   2 0 1 0 
longterm incentives
deferred annual bonus scheme dabs
m e s s r s   b ö t t c h e r    b o w t e l l    l o n g    l u n d g r e n   a n d   w a g g o t t   p a r t i c i p a t e d   i n   t h e   d a b s   d u r i n g   t h e   y e a r   e n d e d   3 0   s e p t e m b e r   2 0 1 0   a n d    w i t h   t h e   e x c e p t i o n  
o f   m r   b o w t e l l    a r e   e x p e c t e d   t o   r e c e i v e   a n   a w a r d   o n   2   d e c e m b e r   2 0 1 0   a s   f o l l o w s 
          estimated value of  award 
director           £000
dr volker böttcher             284
peter  long            744
johan  lundgren            363
william  waggott            282
a w a r d s   m a d e   u n d e r   t h e   d a b s    a n d   w h i c h   r e m a i n   o u t s t a n d i n g   a t   3 0   s e p t e m b e r   2 0 1 0    a r e   g i v e n   i n   t h e   t a b l e   o n   p a g e   5 9 
go v ernanc e
remuneration report c o n t i n u e d group at a glance strategic overview business performance governance financial statements shareholder information
 
wwwtuitravelplccom
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  59
deferred annual bonus scheme dabs
                              m a x i m u m
        d a b s   s h a r e s         d a b s   s h a r e s         d a b s   s h a r e s           v a l u e
        a w a r d e d         v e s t e d         r e l e a s e d         m a x i m u m     b a s e d   o n
    d a b s   s h a r e s     d u r i n g   t h e       m a r k e t   p r i c e   d u r i n g   t h e   m a r k e t   p r i c e     p l a n n e d    d u r i n g   t h e   m a r k e t   p r i c e       d a b s   s h a r e s     s h a r e   p r i c e
    h e l d   a t     y e a r   e n d e d       p e r   s h a r e   y e a r   e n d e d   p e r   s h a r e   m a r k e t   v a l u e   a c t u a l   y e a r   e n d e d   p e r   s h a r e   m a r k e t   v a l u e       h e l d   a t     o f   2 1 4  4 p   a t
d i r e c to r s     1  1 0  2 0 0 9     3 0  0 9  2 0 1 0     a w a r d   d a t e   a t   a w a r d   3 0  0 9  2 0 1 0   a t   v e s t i n g   a t   v e s t i n g     v e s t i n g   d a t e   3 0  0 9  2 0 1 0   a t   r e l e a s e   a t   r e l e a s e   r e l e a s e   d a t e   3 0  0 9  2 0 1 0     3 0  0 9  2 0 1 0
d r   v ol k e r  
b ö t t c he r     6 0  4 3 2
2
    1 9  1 2  0 7       2 7 0  4 0 p             1 9  1 2  1 0               6 0  4 3 2     1 2 9  5 6 6
    2 4 1  7 2 9
3
        1 9  1 2  0 7       2 7 0  4 0 p             1 9  1 2  1 0               2 4 1  7 2 9     5 1 8  2 6 7
    1 0 4  8 0 9
4
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             1 0 4  8 0 9     2 2 4  7 1 0
    4 1 9  2 3 6
5
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             4 1 9  2 3 6     8 9 8  8 4 2
          1 0 1  8 1 9
6
      0 2  1 2  0 9       2 4 3  3 0 p               0 2  1 2  1 2           1 0 1  8 1 9     2 1 8  3 0 0
          4 0 7  2 7 6
7
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           4 0 7  2 7 6     8 7 3  2 0 0
t o t a l     8 2 6  2 0 6     5 0 9  0 9 5                                     1  3 3 5  3 0 1     2  8 6 2  8 8 5
p a u l   b o w t e l l   1 5 6  9 2 3
1
    1 3  0 2  0 7       2 6 0  0 0 p   1 4 7  3 1 1     2 6 2  1 0 p   3 8 6  1 0 2       1 5  0 2  1 0       1 4 7  3 1 1   2 6 2  1 0 p   3 8 6  1 0 2       1 5  0 2  1 0   –     –  
    6 7  5 9 9
2
        1 9  1 2  0 7       2 7 0  4 0 p   6 7  5 9 9   2 4 3  3 0 p   1 6 4  4 6 8       0 2  1 2  0 9       2 7  7 1 6   2 4 3  3 0 p   6 7  4 3 3   0 2  1 2  0 9       3 9  8 8 3
8
  8 5  5 0 9
    2 7 0  3 9 4
3
        1 9  1 2  0 7       2 7 0  4 0 p             1 9  1 2  1 0               2 7 0  3 9 4     57 9  7 2 5  
    1 3 4  4 7 0
4
      2 8  1 1  0 8     2 0 5  2 5 p   1 3 4  4 7 0   2 4 3  3 0 p   3 2 7  1 6 6     0 2  1 2  0 9       5 5  1 3 3   2 4 3  3 0 p   1 3 4  1 3 9   0 2  1 2  0 9       7 9  3 3 7
8
  1 7 0  0 9 9  
    5 3 7  8 8 0
5
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             5 3 7  8 8 0     1  1 5 3  2 1 5  
          1 2 0  8 3 8
6
      0 2  1 2  0 9       2 4 3  3 0 p   1 2 0  8 3 8   2 4 3  3 0 p   2 9 3  9 9 9       0 2  1 2  0 9   4 9  5 4 4   2 4 3  3 0 p   1 2 0  5 4 1   0 2  1 2  0 9       7 1  2 9 4
8
  1 5 2  8 5 4  
          4 8 3  3 5 2
7
      0 2  1 2  0 9       2 4 3  3 0 p                   0 2  1 2  1 2           4 8 3  3 5 2     1  0 3 6  3 0 7
t o t a l     1  1 6 7  2 6 6     6 0 4  1 9 0                             2 7 9  7 0 4     7 0 8  2 1 5     1  4 8 2  1 4 0     3  1 7 7  7 0 9
p e t e r   l on g     3 2 6  1 5 5
1
      1 3  0 2  0 7       2 6 0  0 0 p   3 0 6  1 7 8     2 6 2  1 0 p   8 0 2  4 9 3       1 5  0 2  1 0       3 0 6  1 7 8   2 6 2  1 0 p   8 0 2  4 9 3       1 5  0 2  1 0       –   –  
    1 3 8  2 8 8
2
      1 9  1 2  0 7     2 7 0  4 0 p   1 3 8  2 8 8   2 4 3  3 0 p   3 3 6  4 5 5     0 2  1 2  0 9       5 6  6 9 9   2 4 3  3 0 p   1 3 7  9 4 9   0 2  1 2  0 9       8 1  5 8 9
8
  1 7 4  9 2 7  
    5 5 3  1 5 0
3
      1 9  1 2  0 7     2 7 0  4 0 p           1 9  1 2  1 0             5 5 3  1 5 0     1  1 8 5  9 5 4  
    2 9 2  3 2 6
4
      2 8  1 1  0 8     2 0 5  2 5 p   2 9 2  3 2 6   2 4 3  3 0 p   7 1 1  2 2 9     0 2  1 2  0 9       1 1 9  8 5 4   2 4 3  3 0 p   2 91  6 0 5   0 2  1 2  0 9       1 7 2  4 7 2
8
  3 6 9  7 8 0  
    1  1 6 9  3 0 4
5
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             1  1 6 9  3 0 4     2  5 0 6  9 8 8  
          2 6 2  0 2 2
6
      0 2  1 2  0 9       2 4 3  3 0 p   2 6 2  0 2 2   2 4 3  3 0 p   6 3 7  5 0 0       0 2  1 2  0 9       1 0 7  4 3 0   2 4 3  3 0 p   2 6 1  3 7 7   0 2  1 2  0 9       1 5 4  5 9 2
8
  3 3 1  4 4 5  
          1  0 4 8  0 8 8
7
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           1  0 4 8  0 8 8     2  2 4 7  1 0 1
t o t a l     2  4 7 9  2 2 3     1  3 1 0  1 1 0                         5 9 0  1 6 1     1  4 9 3  4 2 4     3  1 7 9  1 9 5     6  8 1 6  1 9 5
j oh a n   l u nd g re n   6 7  4 3 1
2
      1 9  1 2  0 7     2 7 0  4 0 p   6 7  4 3 1   2 4 3  3 0 p   1 6 4  0 6 0     0 2  1 2  0 9       2 7  6 4 7   2 4 3  3 0 p   6 7  2 6 5   0 2  1 2  0 9       3 9  7 8 4
8
  8 5  2 9 7  
    2 6 9  7 2 3
3
      1 9  1 2  0 7     2 7 0  4 0 p           1 9  1 2  1 0             2 6 9  7 2 3     57 8  2 8 6  
    1 3 5  4 4 6
4
      2 8  1 1  0 8     2 0 5  2 5 p   1 3 5  4 4 6   2 4 3  3 0 p   3 2 9  5 4 0   0 2  1 2  0 9       5 5  5 3 3   2 4 3  3 0 p   1 3 5  1 1 2   0 2  1 2  0 9       7 9  91 3
8
  1 7 1  3 3 3  
    5 4 1  7 8 4
5
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             5 4 1  7 8 4     1  1 6 1  5 8 5  
          1 0 5  8 6 3
6
      0 2  1 2  0 9       2 4 3  3 0 p   1 0 5  8 6 3   2 4 3  3 0 p   2 57  5 6 5   0 2  1 2  0 9       4 3  4 0 4   2 4 3  3 0 p   1 0 5  6 0 2   0 2  1 2  0 9       6 2  4 5 9
8
  1 3 3  91 2  
        4 2 3  4 5 2
7
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           4 2 3  4 5 2     9 0 7  8 8 1
t o t a l     1  0 1 4  3 8 4     5 2 9  3 1 5                       1 2 6  5 8 4     3 0 7  9 7 9     1  4 1 7  1 1 5     3  0 3 8  2 9 4
w i l l i a m   w a g g o t t   7 3  5 5 8
2
    1 9  1 2  0 7     2 7 0  4 0 p   7 3  5 5 8   2 4 3  3 0 p   1 7 8  9 6 7     0 2  1 2  0 9       3 0  1 5 9   2 4 3  3 0 p   7 3  3 7 7   0 2  1 2  0 9       4 3  3 9 9
8
  9 3  0 4 7  
    2 9 4  2 3 0
3
      1 9  1 2  0 7     2 7 0  4 0 p           1 9  1 2  1 0             2 9 4  2 3 0     6 3 0  8 2 9  
    9 7  4 4 2
4
      2 8  1 1  0 8     2 0 5  2 5 p   9 7  4 4 2   2 4 3  3 0 p   2 3 7  0 7 6     0 2  1 2  0 9       3 9  9 5 2   2 4 3  3 0 p   9 7  2 0 3   0 2  1 2  0 9       57  4 9 0
8
  1 2 3  2 5 9  
    3 8 9  7 6 8
5
      2 8  1 1  0 8     2 0 5  2 5 p           2 8  1 1  1 1             3 8 9  7 6 8     8 3 5  6 6 3  
          8 8  3 6 8
6
      0 2  1 2  0 9       2 4 3  3 0 p   8 8  3 6 8   2 4 3  3 0 p   2 1 4  9 9 9   0 2  1 2  0 9       3 6  2 3 1   2 4 3  3 0 p   8 8  1 5 0   0 2  1 2  0 9       5 2  1 3 7
8
  1 1 1  7 8 2  
          3 5 3  4 7 2
7
      0 2  1 2  0 9       2 4 3  3 0 p                   0 2  1 2  1 2           3 5 3  4 7 2     7 57  8 4 4
t o t a l     8 5 4  9 9 8     4 4 1  8 4 0                       1 0 6  3 4 2     2 5 8  7 3 0     1  1 9 0  4 9 6     2  5 5 2  4 2 4
grand total 6342077  3394550          1102791   2768348   8604247  18447507
1     t h i s   ‘ r o l l  o v e r ’   a w a r d   i s   b a s e d   o n   a    p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 0 9   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    p e r f o r m a n c e   t o   t h e   3 r d  
a n n i v e r s a r y   o f   t h e   a w a r d   d a t e   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   m i d  2 5 0   i n d e x    e x c l u d i n g   i n v e s t m e n t   t r u s t s    
a s   c a l c u l a t e d   a t   t h e   a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d  
a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   4    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n   a n d   7 5    o f   t h e   a w a r d   r e l e a s e d   f o r   1 3    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   
o f   t h e   c o m p a n y   a g a i n s t   t h e   c o m p a r a t o r   g r o u p    w i t h   2  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   2 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e      t h e   r o i c  w a c c   h u r d l e   w a s   a c h i e v e d     
e p s   g r o w t h   w a s   g r e a t e r   t h a n   1 3    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n   a n d   t h e   c o m p a n y   t s r   r a n k i n g   w a s   6 9 t h   p e r c e n t i l e   t h e r e f o r e   9 3  8 7 5    o f   t h e   a w a r d   w a s   r e l e a s e d   o n   1 5   f e b r u a r y   2 0 1 0 
2       t h i s   a w a r d   i s   t h e   d e f e r r e d   e l e m e n t   o f   t h e   a n n u a l   b o n u s   e n t i t l e m e n t   f o r   f i n a n c i a l   y e a r   2 0 0 6  0 7   a n d   i s   s u b j e c t   o n l y   t o   c o n t i n u e d   e m p l o y m e n t   t o   t h e   r e l e a s e   d a t e 
3       t h i s   m a t c h i n g   a w a r d   i s   b a s e d   o n   a    p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 0   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o    e p s    g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    p e r f o r m a n c e   t o   t h e   3 r d  
a n n i v e r s a r y   o f   t h e   a w a r d   d a t e   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n  
a s   c a l c u l a t e d   a t   t h e   a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r e t u r n   o n   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s  
g r a d e d   a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n   a n d   7 5    o f   t h e   a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y  
a g a i n s t   t h e   c o m p a r a t o r   g r o u p    w i t h   3  7 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   2 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e 
4     t h i s   a w a r d   i s   t h e   d e f e r r e d   e l e m e n t   o f   t h e   a n n u a l   b o n u s   e n t i t l e m e n t   f o r   f i n a n c i a l   y e a r   2 0 0 7  0 8   a n d   i s   s u b j e c t   o n l y   t o   c o n t i n u e d   e m p l o y m e n t   t o   t h e   r e l e a s e   d a t e 
5       t h i s   m a t c h i n g   a w a r d   i s   b a s e d   o n   a    p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 1   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    p e r f o r m a n c e   t o   t h e   3 r d 
a n n i v e r s a r y   o f   t h e   a w a r d   d a t e   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n  
a s   c a l c u l a t e d   a t   t h e   a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d 
a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n   a n d   7 5    o f   t h e   a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y   a g a i n s t   
t h e   c o m p a r a t o r   g r o u p    w i t h   3  7 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   2 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e 
6   t h i s   a w a r d   i s   t h e   d e f e r r e d   e l e m e n t   o f   t h e   a n n u a l   b o n u s   e n t i t l e m e n t   f o r   f i n a n c i a l   y e a r   2 0 0 8  0 9   a n d   i s   s u b j e c t   o n l y   t o   c o n t i n u e d   e m p l o y m e n t   t o   t h e   r e l e a s e   d a t e 
7       t h i s   m a t c h i n g   a w a r d   i s   b a s e d   o n   p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 2   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   a    e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    t h e   c o m p a n y ’ s   t s r   r a n k i n g  
a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n   a s   c a l c u l a t e d   a t   t h e   a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c    
m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d   a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n    
a n d   7 5    o f   t h e   a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y   a g a i n s t   t h e   c o m p a r a t o r   g r o u p    w i t h   3  7 5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   2 5    o f   t h e   a w a r d 
b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e 
8       d u r i n g   t h e   y e a r   t h e   d i r e c t o r   a n d   t h e   c o m p a n y   a g r e e d   t o   e n t e r   i n t o   a   j o i n t   e l e c t i o n   p u r s u a n t   t o   s e c t i o n   4 3 1  1    o f   t h e   i n c o m e   t a x    e a r n i n g s   a n d   p e n s i o n s    a c t   2 0 0 3   i n   r e s p e c t   o f   t h i s   a w a r d      c o n s e q u e n t l y  
t h e   r e m u n e r a t i o n   c o m m i t t e e   a g r e e d   t o   v e s t   t h e s e   a w a r d s   e a r l y   a n d   r e l e a s e   s u f f i c i e n t   s h a r e s   t o   s a t i s f y   t h e   t a x   l i a b i l i t y   a r i s i n g   f r o m   t h e   j o i n t   e l e c t i o n      t h e   r e m a i n i n g   s h a r e s    w h i c h   a r e   v e s t e d    a r e   h e l d   a s  
r e s t r i c t e d   s h a r e s   a n d   w i l l   n o t   b e   r e l e a s e d   b e f o r e   t h e   t h i r d   a n n i v e r s a r y   o f   t h e   o r i g i n a l   a w a r d   d a t e      t h e s e   r e s t r i c t e d   s h a r e s   a r e   s u b j e c t   t o   c l a w  b a c k   c o n d i t i o n s   i n   a c c o r d a n c e   w i t h   t h e   s c h e m e   r u l e s  wwwtuitravelplccom
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a w a r d s   m a d e   u n d e r   t h e   p s p    a n d   w h i c h   r e m a i n   o u t s t a n d i n g   a t   3 0   s e p t e m b e r   2 0 1 0   a r e 
      m a x i m u m                           m a x i m u m
      p sp   s h a r e s         p sp   s h a r e s         p sp   s h a r e s           v a l u e
    m a x i m u m     v e s t e d           v e s t e d         r e l e a s e d         m a x i m u m   b a s e d   o n 
    p sp   s h a r e s     d u r i n g   t h e       m a r k e t   p r i c e   d u r i n g   t h e   m a r k e t   p r i c e     p l a n n e d    d u r i n g   t h e   m a r k e t   p r i c e       p sp   s h a r e s   s h a r e   p r i c e
    h e l d   a t     y e a r   e n d e d       p e r   s h a r e   y e a r   e n d e d   p e r   s h a r e   m a r k e t   v a l u e     a c t u a l   y e a r   e n d e d   p e r   s h a r e   m a r k e t   v a l u e     h e l d   a t   o f   2 1 4  4 p   a t
d i r e c to r s     1  1 0  2 0 0 9     3 0  0 9  2 0 1 0     a w a r d   d a t e   a t   a w a r d   3 0  0 9  2 0 1 0   a t   v e s t i n g   a t   v e s t i n g   £   v e s t i n g   d a t e   3 0  0 9  2 0 1 0   a t   r e l e a s e   a t   r e l e a s e   r e l e a s e   d a t e   3 0  0 9  2 0 1 0   3 0  0 9  2 0 1 0
d r   v ol k e r 
b ö t t c he r     7 8  8 8 8
1
    0 3  0 9  0 7   2 8 5  5 0 p   7 8  8 8 8   2 6 2  1 0 p   2 0 6  7 6 5   1 5  0 2  1 0   7 8  8 8 8   2 6 2  1 0 p   2 0 6  7 6 5   1 5  0 2  1 0   –   –
    1 2 9  2 0 9
2
    1 3  0 9  0 7   2 7 3  0 0 p   –       0 2  1 2  1 0           1 2 9  2 0 9   2 7 7  0 2 4
    2 2 1  8 2 9
3
    2 8  1 1  0 8   2 0 5  2 5 p   –       2 8  1 1  1 1           2 2 1  8 2 9   4 7 5  6 0 1
        2 0 3  6 3 9
3
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           2 0 3  6 3 9   4 3 6  6 0 2
t o t a l     4 2 9  9 2 6     2 0 3  6 3 9                   7 8  8 8 8     2 0 6  7 6 5     5 5 4  6 7 7   1  1 8 9  2 2 7
p a u l   b o w t e l l   7 4  0 3 9
1
  –     1 3  0 2  0 7   2 6 0  0 0 p   7 4  0 3 9   2 6 2  1 0 p   1 9 4  0 5 6   1 5  0 2  1 0   7 4  0 3 9   2 6 2  1 0 p   1 9 4  0 5 6   1 5  0 2  1 0   –   –
    2 0 2  1 9 8
2
  –     1 3  0 9  0 7   2 7 3  0 0 p   –       0 2  1 2  1 0           2 0 2  1 9 8   4 3 3  5 1 3
    2 8 6  4 7 9
3
    2 8  1 1  0 8   2 0 5  2 5 p   –       2 8  1 1  1 1           2 8 6  4 7 9   6 1 4  2 1 1
        2 4 1  6 7 6
4
  0 2  1 2  0 9   2 4 3  3 0 p                 0 2  1 2  1 2           2 4 1  6 7 6   5 1 8  1 5 3
t o t a l     5 6 2  7 1 6     2 4 1  6 7 6                     7 4  0 3 9     1 9 4  0 5 6     7 3 0  3 5 3   1  5 6 5  8 7 7
p e t e r   l on g     1 7 3  0 7 8
1
  –     1 3  0 2  0 7   2 6 0  0 0 p   1 7 3  0 7 8   2 6 2  1 0 p   4 5 3  6 3 7   1 5  0 2  1 0   1 7 3  0 7 8   2 6 2  1 0 p   4 5 3  6 3 7   1 5  0 2  1 0   –   –
    5 8 6  0 8 1
2
  –     1 3  0 9  0 7   2 7 3  0 0 p   –       0 2  1 2  1 0           5 8 6  0 8 1   1  2 5 6  5 5 8
    8 2 8  2 5 8
3
    2 8  1 1  0 8   2 0 5  2 5 p   –         2 8  1 1  1 1             8 2 8  2 5 8   1  7 7 5  7 8 5
        6 9 8  7 2 5
4
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           6 9 8  7 2 5   1  4 9 8  0 6 6
t o t a l     1  5 8 7  4 1 7     6 9 8  7 2 5                   1 7 3  0 7 8     4 5 3  6 3 7     2  1 1 3  0 6 4   4  5 3 0  4 0 9
j oh a n   l u nd g re n   1 3 0  3 4 8
1
  –   0 3  0 9  0 7   2 8 5  5 0 p   1 3 0  3 4 8   2 6 2  1 0 p   3 4 1  6 4 2   1 5  0 2  1 0   1 3 0  3 4 8   2 6 2  1 0 p   3 4 1  6 4 2   1 5  0 2  1 0   –   –
    1 0 4  7 7 3
2
  –   1 3  0 9  0 7   2 7 3  0 0 p   –       0 2  1 2  1 0           1 0 4  7 7 3   2 2 4  6 3 3
    1 9 2  3 0 7
2
    1 9  1 2  0 7   2 7 0  4 0 p   –       1 9  1 2  1 0           1 9 2  3 0 7   4 1 2  3 0 6
    2 8 7  1 0 6
3
    2 8  1 1  0 8   2 0 5  2 5 p   –         2 8  1 1  1 1             2 8 7  1 0 6   6 1 5  5 5 5
        2 4 8  6 6 4
4
      0 2  1 2  0 9       2 4 3  3 0 p                 0 2  1 2  1 2           2 4 8  6 6 4   5 3 3  1 3 6
t o t a l     7 1 4  5 3 4     2 4 8  6 6 4                   1 3 0  3 4 8     3 4 1  6 4 2     8 3 2  8 5 0   1  7 8 5  6 3 0
w i l l i a m   w a g g o t t   2 4 4  6 8 5
1
  –   0 3  0 9  0 7   2 8 5  5 0 p   2 4 4  6 8 5   2 6 2  1 0 p   6 4 1  3 1 9   1 5  0 2  1 0   2 4 4  6 8 5   2 6 2  1 0 p   6 4 1  3 1 9   1 5  0 2  1 0   –   –
    1 4 6  5 2 0
2
  –   1 3  0 9  0 7   2 7 3  0 0 p   –       0 2  1 2  1 0           1 4 6  5 2 0   3 1 4  1 3 9
    2 0 9  5 0 0
3
    2 8  1 1  0 8   2 0 5  2 5 p   –         2 8  1 1  1 1             2 0 9  5 0 0   4 4 9  1 6 8
        1 7 6  7 3 6
4
  0 2  1 2  0 9       2 4 3  3 0 p             0 2  1 2  1 2           1 7 6  7 3 6   3 7 8  9 2 2
t o t a l     6 0 0  7 0 5     1 7 6  7 3 6                 2 4 4  6 8 5     6 4 1  3 1 9     5 3 2  7 5 6   1  1 4 2  2 2 9
grand total 3895298  1569440        701038  1837419  4763700 10213372
1       t h i s   ‘ r o l l  o v e r ’   a w a r d   i s   b a s e d   o n   p e r f o r m a n c e   f r o m   1   n o v e m b e r   2 0 0 6   t o   3 0   s e p t e m b e r   2 0 0 9   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   a   p e r f o r m a n c e 
h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d   a c c o r d i n g   t o   e p s   g r o w t h    w i t h   1 0    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   4    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n   a n d 
t h e   e n t i r e   a w a r d   r e l e a s e d   f o r   1 3    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n      t h e   r o i c  w a c c   h u r d l e   w a s   a c h i e v e d   a n d   e p s   g r o w t h   w a s   g r e a t e r   t h a n   1 3    p e r   a n n u m   i n   e x c e s s   o f   i n f l a t i o n   t h e r e f o r e   t h e   e n t i r e  
a w a r d   w a s   r e l e a s e d   o n   1 5   f e b r u a r y   2 0 1 0 
2       t h i s   a w a r d   i s   b a s e d   o n   a    p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 0   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    p e r f o r m a n c e   t o   t h e   3 r d   a n n i v e r s a r y   o f   t h e 
a w a r d   d a t e   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n   a s   c a l c u l a t e d   a t   t h e  
a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w e i g h t e d   a v e r a g e   c o s t   o f   c a p i t a l    w a c c    m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d 
i s   g r a d e d   a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n   a n d   5 0    o f   t h e   a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y  
a g a i n s t   t h e   c o m p a r a t o r   g r o u p    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   5 0    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e 
3       t h i s   a w a r d   i s   b a s e d   o n   a    p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 1   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    p e r f o r m a n c e   t o   t h e   3 r d   a n n i v e r s a r y   o f   t h e 
a w a r d   d a t e   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e   c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n   a s   c a l c u l a t e d   a t   t h e  
a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d   a c c o r d i n g   t o   a    e p s  
g r o w t h    w i t h   5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n   a n d   5 0    o f   t h e   a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y   a g a i n s t   t h e   c o m p a r a t o r   g r o u p  
w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   5 0    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   u p p e r   q u a r t i l e 
4       t h i s   a w a r d   i s   b a s e d   o n   p e r f o r m a n c e   t o   3 0   s e p t e m b e r   2 0 1 2   w h e r e   t h e   p e r f o r m a n c e   m e a s u r e   r e l a t e s   t o   a    e p s   g r o w t h   i n   e x c e s s   o f   t h e   r a t e   o f   i n f l a t i o n   a n d   b    t h e   c o m p a n y ’ s   t s r   r a n k i n g   a g a i n s t   t h e 
c o n s t i t u e n t   c o m p a n i e s   o f   t h e   f t s e   1 0 0   i n d e x   r a n k e d   3 0   t o   1 0 0   b y   m a r k e t   c a p i t a l i s a t i o n   a s   c a l c u l a t e d   a t   t h e   a w a r d   d a t e      a   p e r f o r m a n c e   h u r d l e   o f   t h e   r o i c   b e i n g   i n   e x c e s s   o f   t h e   w a c c   m u s t   a l s o   b e 
a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   b e   r e l e a s e d      t h e   n u m b e r   o f   s h a r e s   r e l e a s e d   i s   g r a d e d   a c c o r d i n g   t o   a    e p s   g r o w t h    w i t h   5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   1 2    i n   e x c e s s   o f   i n f l a t i o n   a n d   5 0    o f   t h e   
a w a r d   r e l e a s e d   f o r   3 9    i n   e x c e s s   o f   i n f l a t i o n   a n d   b    r a n k i n g   o f   t h e   c o m p a n y   a g a i n s t   t h e   c o m p a r a t o r   g r o u p    w i t h   7  5    o f   t h e   a w a r d   b e i n g   r e l e a s e d   f o r   m e d i a n   a n d   5 0    o f   t h e   a w a r d   b e i n g   r e l e a s e d   
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value creation synergy plan vcsp
t h e   v a l u e   c r e a t i o n   s y n e r g y   p l a n    v c s p     w a s   a   o n e  o f f   t h r e e  y e a r   p l a n   a n d   e x e c u t i v e   d i r e c t o r s   r e c e i v e d   a n   a w a r d   w h i c h   w a s   t o   b e   s a t i s f i e d   b y   a 
c o m b i n a t i o n   o f   c a s h   a n d   s h a r e s   p r o v i d e d   t h a t   s t r e t c h i n g   p e r f o r m a n c e   t a r g e t s   w e r e   s a t i s f i e d      t h e   p e r f o r m a n c e   t a r g e t s    s e t   b y   t h e   c o m m i t t e e    w e r e  
b a s e d   o n   t h e   a c h i e v e m e n t   o f   t h e   s y n e r g i s t i c   o b j e c t i v e s   o f   t h e   m e r g e r   o f   f i r s t   c h o i c e   h o l i d a y s   p l c    n o w   f i r s t   c h o i c e   h o l i d a y s   l i m i t e d    a n d   t h e 
t o u r i s m   d i v i s i o n   o f   t u i   a g 
t h e   a w a r d s    b e i n g   a   c o m b i n a t i o n   o f   c a s h   a n d   s h a r e s    r e l a t e d   t o   p e r f o r m a n c e   o v e r   t h r e e   y e a r s    a s   s h o w n   b e l o w 
t r a n c h e   1    2 0 0 7  2 0 0 8       5 0    c a s h   a n d   5 0    s h a r e s  
t r a n c h e   2    2 0 0 8  2 0 0 9       5 0    c a s h   a n d   5 0    s h a r e s    a n d 
t r a n c h e   3    2 0 0 9  2 0 1 0       1 0 0    c a s h 
c a s h   e n t i t l e m e n t s   w e r e   p a i d   i m m e d i a t e l y   f o l l o w i n g   c o n f i r m a t i o n   o f   a n n u a l   p e r f o r m a n c e   a c h i e v e m e n t    s h a r e s   w e r e   d e f e r r e d   u n t i l   t h e   e n d   o f   t h e  
t h r e e  y e a r   p e r i o d      t h e   r e l e a s e   o f   t h e   d e f e r r e d   s h a r e s   e l e m e n t s   w a s   s u b j e c t   t o   a n   a d d i t i o n a l   o v e r a l l   t h r e e  y e a r   p e r f o r m a n c e   t a r g e t 
t h e   o v e r a l l   t h r e e  y e a r   p e r f o r m a n c e   t a r g e t   w a s   s e t   a t   £ 1 0 0 m   o f   s y n e r g i s t i c   v a l u e    b e l o w   w h i c h   n o   v e s t i n g   w o u l d   o c c u r    w i t h   a   v e s t i n g   s c a l e   u p   
t o   a   ‘ s t r e t c h ’   l e v e l   o f   £ 1 5 0 m      i n   a d d i t i o n    t h e   c o m m i t t e e   s e t   a n n u a l   p r o f i t   m a r g i n   t a r g e t s   b e l o w   w h i c h   n o   p a y m e n t   o r   v e s t i n g   w o u l d   o c c u r 
a t   t a r g e t   a n d   s t r e t c h   a n n u a l   p e r f o r m a n c e    t h e   p r o p o r t i o n   v e s t i n g   u n d e r   e a c h   a n n u a l   t r a n c h e   w a s   5 0    a n d   1 0 0    r e s p e c t i v e l y      i n   t h e   e v e n t   o f   t h e 
o v e r a l l   t h r e e  y e a r   p e r f o r m a n c e   t a r g e t   n o t   b e i n g   a c h i e v e d    a n y   n e t   a m o u n t s   p r e v i o u s l y   p a i d   i n   r e l a t i o n   t o   t h e   c a s h   e l e m e n t s   o f   t r a n c h e s   1   a n d   2 
m u s t   b e   r e p a i d   t o   t h e   c o m p a n y 
t h e   o v e r a l l   s y n e r g y   v a l u e   a c h i e v e m e n t   o v e r   t h e   t h r e e  y e a r   p e r i o d   i s   £ 1 9 5 m   a s   d e s c r i b e d   i n   d e t a i l   o n   p a g e   4 1   o f   t h i s   r e p o r t 
value creation synergy plan vcsp
a w a r d s   m a d e   u n d e r   t h e   v c s p    a n d   w h i c h   r e m a i n   o u t s t a n d i n g   a t   3 0   s e p t e m b e r   2 0 1 0    a r e   g i v e n   i n   t h e   t a b l e   b e l o w 
                              m a x i m u m
        v c sp   s h a r e s         v c sp   s h a r e s         v c sp   s h a r e s           v a l u e
        a w a r d e d         v e s t e d         r e l e a s e d         m a x i m u m     b a s e d   o n
    v c sp   s h a r e s     d u r i n g   t h e       m a r k e t   p r i c e   d u r i n g   t h e   m a r k e t   p r i c e     p l a n n e d    d u r i n g   t h e   m a r k e t   p r i c e       v c sp   s h a r e s     s h a r e   p r i c e
    h e l d   a t     y e a r   e n d e d       p e r   s h a r e   y e a r   e n d e d   p e r   s h a r e   v a l u e   a t   a c t u a l   y e a r   e n d e d   p e r   s h a r e   m a r k e t   v a l u e       h e l d   a t     o f   2 1 4  4 p   a t
d i r e c to r s     1  1 0  2 0 0 9     3 0  0 9  2 0 1 0     a w a r d   d a t e   a t   a w a r d   3 0  0 9  2 0 1 0   a t   v e s t i n g   v e s t i n g   £     v e s t i n g   d a t e   3 0  0 9  2 0 1 0   a t   r e l e a s e   a t   r e l e a s e   r e l e a s e   d a t e   3 0  0 9  2 0 1 0     3 0  0 9  2 0 1 0
d r   v ol k e r  
b ö t t c he r     7 8  6 0 6
1
      2 8  1 1  0 8     2 0 5  2 5 p         0 2  1 2  1 0           7 8  6 0 6     1 6 8  5 3 1  
      7 2  1 6 1
2
  0 2  1 2  0 9   2 4 3  3 0 p         0 2  1 2  1 0           7 2  1 6 1     1 5 4  7 1 3
t o t a l     7 8  6 0 6     7 2  1 6 1                         1 5 0  7 6 7     3 2 3  2 4 4
p a u l   b o w t e l l   1 2 3  2 6 4
1
      2 8  1 1  0 8     2 0 5  2 5 p   1 2 3  2 6 4   2 4 3  3 0 p   2 9 9  9 0 1   0 2  1 2  0 9   5 0  5 3 9   2 4 3  3 0 p   1 2 2  9 6 1     7 2  7 2 5
3
  1 5 5  9 2 2
      1 0 3  9 8 6     0 2  1 2  0 9   2 4 3  3 0 p   1 0 3  9 8 6   2 4 3  3 0 p   2 5 2  9 9 8   0 2  1 2  0 9   4 2  6 3 5   2 4 3  3 0 p   1 0 3  7 3 1     6 1  3 5 1
3
  1 3 1  5 3 7
t o t a l     1 2 3  2 6 4     1 0 3  9 8 6                 9 3  1 7 4     2 2 6  6 9 2     1 3 4  0 7 6     2 8 7  4 5 9
p e t e r   l on g     2 9 2  3 2 6
1
      2 8  1 1  0 8     2 0 5  2 5 p   2 9 2  3 2 6   2 4 3  3 0 p   7 1 1  2 2 9   0 2  1 2  0 9   1 1 9  8 5 4   2 4 3  3 0 p   2 91  6 0 5     1 7 2  4 7 2
3
  3 6 9  7 8 0
      2 4 6  6 0 9     0 2  1 2  0 9   2 4 3  3 0 p   2 4 6  6 0 9   2 4 3  3 0 p   6 0 0  0 0 0   0 2  1 2  0 9   1 0 1  1 1 0   2 4 3  3 0 p   2 4 6  0 0 1     1 4 5  4 9 9
3
  3 1 1  9 5 0
t o t a l     2 9 2  3 2 6     2 4 6  6 0 9                 2 2 0  9 6 4     5 3 7  6 0 6     3 1 7  9 7 1     6 8 1  7 3 0
j o h a n   l u n d g r e n   1 4 8  9 9 0
1
      2 8  1 1  0 8     2 0 5  2 5 p   1 4 8  9 9 0   2 4 3  3 0 p   3 6 2  4 9 3   0 2  1 2  0 9   6 1  0 8 6   2 4 3  3 0 p   1 4 8  6 2 2     8 7  9 0 4
3
  1 8 8  4 6 6  
      1 2 7  0 3 0     0 2  1 2  0 9   2 4 3  3 0 p   1 2 7  0 3 0   2 4 3  3 0 p   3 0 9  0 6 4   0 2  1 2  0 9   5 2  0 8 3   2 4 3  3 0 p   1 2 6  7 1 8     7 4  9 4 7
3
  1 6 0  6 8 6
t o t a l     1 4 8  9 9 0     1 2 7  0 3 0                 1 1 3  1 6 9     2 7 5  3 4 0     1 6 2  8 5 1     3 4 9  1 5 2
w i l l i a m   w a g g o t t   1 0 7  1 8 6
1
      2 8  1 1  0 8     2 0 5  2 5 p   1 0 7  1 8 6   2 4 3  3 0 p   2 6 0  7 8 4   0 2  1 2  0 9   4 3  9 4 7   2 4 3  3 0 p   1 0 6  9 2 3     6 3  2 3 9
3
  1 3 5  5 8 4  
      9 0  4 2 3
2
  0 2  1 2  0 9   2 4 3  3 0 p   9 0  4 2 3   2 4 3  3 0 p   2 1 9  9 9 9   0 2  1 2  0 9   3 7  0 7 4   2 4 3  3 0 p   9 0  2 0 1     5 3  3 4 9
3
  1 1 4  3 8 0
t o t a l     1 0 7  1 8 6     9 0  4 2 3                 8 1  0 2 1     1 9 7  1 2 4     1 1 6  5 8 8     2 4 9  9 6 4
grand total 750372  640209        508328  1236762  882253  1891549
1       t h i s   a w a r d   i s   t h e   d e f e r r e d   e l e m e n t   o f   t r a n c h e   1   o f   t h e   v c s p   f o r   f i n a n c i a l   y e a r   2 0 0 7  0 8      a   p r o f i t   m a r g i n   p e r f o r m a n c e   h u r d l e   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   v e s t      t h e   v e s t i n g   o f   s h a r e s    
i s   g r a d e d   a c c o r d i n g   t o   s y n e r g i s t i c   v a l u e   a c h i e v e d   w i t h   n o n e   o f   t h e   a w a r d   v e s t i n g   f o r   s y n e r g i s t i c   v a l u e   b e l o w   £ 1 0 0 m   a n d   a l l   o f   t h e   a w a r d   v e s t i n g   f o r   £ 1 5 0 m   s y n e r g i s t i c   v a l u e   o r   m o r e      t h e   p r o f i t   m a r g i n  
h u r d l e   w a s   e x c e e d e d   a n d   t h e   s y n e r g y   p e r f o r m a n c e   w a s   £ 1 9 5 m   t h e r e f o r e   a l l   o f   t h e   s h a r e s   v e s t e d      f u r t h e r   d e t a i l s   r e g a r d i n g   t h e   s y n e r g y   p e r f o r m a n c e   a c h i e v e d   a r e   s e t   o u t   o n   p a g e   4 1 
2       t h i s   a w a r d   i s   t h e   d e f e r r e d   e l e m e n t   o f   t r a n c h e   2   o f   t h e   v c s p   f o r   f i n a n c i a l   y e a r   2 0 0 8  0 9      a   p r o f i t   m a r g i n   p e r f o r m a n c e   h u r d l e   m u s t   a l s o   b e   a c h i e v e d   f o r   a n y   o f   t h e   a w a r d   t o   v e s t      t h e   v e s t i n g   o f   s h a r e s    
i s   g r a d e d   a c c o r d i n g   t o   s y n e r g i s t i c   v a l u e   a c h i e v e d   w i t h   n o n e   o f   t h e   a w a r d   v e s t i n g   f o r   s y n e r g i s t i c   v a l u e   b e l o w   £ 1 0 0 m   a n d   a l l   o f   t h e   a w a r d   v e s t i n g   f o r   £ 1 5 0 m   s y n e r g i s t i c   v a l u e   o r   m o r e      t h e   p r o f i t   m a r g i n 
h u r d l e   w a s   e x c e e d e d   a n d   t h e   s y n e r g y   p e r f o r m a n c e   w a s   £ 1 9 5 m   t h e r e f o r e   a l l   o f   t h e   s h a r e s   v e s t e d      f u r t h e r   d e t a i l s   r e g a r d i n g   t h e   s y n e r g y   p e r f o r m a n c e   a c h i e v e d   a r e   s e t   o u t   o n   p a g e   4 1 
3       d u r i n g   t h e   y e a r   t h e   d i r e c t o r   a n d   t h e   c o m p a n y   a g r e e d   t o   e n t e r   i n t o   a   j o i n t   e l e c t i o n   p u r s u a n t   t o   s e c t i o n   4 3 1  1    o f   t h e   i n c o m e   t a x    e a r n i n g s   a n d   p e n s i o n s    a c t   2 0 0 3   i n   r e s p e c t   o f   t h i s   a w a r d      c o n s e q u e n t l y   
t h e   r e m u n e r a t i o n   c o m m i t t e e   a g r e e d   t o   v e s t   t h e s e   a w a r d s   e a r l y   a n d   r e l e a s e   s u f f i c i e n t   s h a r e s   t o   s a t i s f y   t h e   t a x   l i a b i l i t y   a r i s i n g   f r o m   t h e   j o i n t   e l e c t i o n      t h e   r e m a i n i n g   s h a r e s    w h i c h   a r e   v e s t e d    a r e   h e l d   a s 
r e s t r i c t e d   s h a r e s   a n d   w i l l   n o t   b e   r e l e a s e d   b e f o r e   t h e   t h i r d   a n n i v e r s a r y   o f   t h e   o r i g i n a l   a w a r d   d a t e      t h e s e   r e s t r i c t e d   s h a r e s   a r e   s u b j e c t   t o   c l a w  b a c k   c o n d i t i o n s   i n   a c c o r d a n c e   w i t h   t h e   s c h e m e   r u l e s  wwwtuitravelplccom
62  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
directors’ interests in ordinary shares of the company
a s   a t   3 0   s e p t e m b e r   2 0 1 0    t h e   d i r e c t o r s ’   i n t e r e s t s   i n   o r d i n a r y   s h a r e s   o f   t h e   c o m p a n y   w e r e 
          ordinary  shares  of 10p each  
director’s  name  title         as  at  30  september  2010
horst baier  nonexecutive  director           –
dr  volker böttcher   managing  director central europe           75814
paul  bowtell  chief financial  officer          880504
tony  campbell  nonexecutive  director          44863
clare  chapman  nonexecutive director           10000
bill  dalton  nonexecutive director          10000
rainer  feuerhake   nonexecutive  director          –
dr  michael  frenzel   nonexecutive chairman           –
jeremy  hicks  nonexecutive  director           –
sir  michael  hodgkinson  nonexecutive  deputy  chairman and se nior  independent director        20000
peter  long  chief  executive          3154859
johan  lundgren  managing director  northern  region           430000
dr  erhard   schipporeit  nonexecutive  director          –
dr   albert schunk  nonexecutive director           –
harold  sher  nonexecutive  director           –
giles  thorley   nonexecutive  director           25000
william  waggott  commercial  director           389237
 i n c l u d e s   s h a r e s   p u r c h a s e d   u n d e r   t h e   s h a r e   i n c e n t i v e   p l a n 
t h e   c o m p a n y ’ s   r e g i s t e r   o f   d i r e c t o r s ’   i n t e r e s t s    w h i c h   i s   o p e n   t o   i n s p e c t i o n   a t   t h e   r e g i s t e r e d   o f f i c e    c o n t a i n s   f u l l   d e t a i l s   o f   d i r e c t o r s ’    
s h a r e h o l d i n g s   a n d   w i l l   b e   a v a i l a b l e   f o r   i n s p e c t i o n   b e f o r e   a n d   d u r i n g   t h e   a n n u a l   g e n e r a l   m e e t i n g   t o   b e   h e l d   o n   t h u r s d a y   3   f e b r u a r y   2 0 1 1 
d u r i n g   t h e   y e a r    t h e   p r i c e   o f   t h e   c o m p a n y ’ s   o r d i n a r y   s h a r e s   r a n g e d   b e t w e e n   1 9 0  0 p   a n d   3 0 8  4 p   a n d   t h e   m i d  c l o s i n g   p r i c e   o n   3 0   s e p t e m b e r   2 0 1 0  
w a s   2 1 4  4 p 
o n   1   o c t o b e r   2 0 1 0    t o n y   c a m p b e l l   w a s   a l l o c a t e d   6 5 1   a d d i t i o n a l   s h a r e s   i n   r e s p e c t   o f   t h e   d i v i d e n d   r e i n v e s t m e n t   p l a n 
t h e   r e m u n e r a t i o n   r e p o r t   w a s   a p p r o v e d   b y   a   d u l y   a u t h o r i s e d   c o m m i t t e e   o f   t h e   b o a r d   o f   d i r e c t o r s   o n   1   d e c e m b e r   2 0 1 0   a n d   s i g n e d   o n   i t s    
b e h a l f   b y 
clare chapman
c h a i r m a n   o f   t h e   r e m u n e r a t i o n   c o m m i t t e e
1   d e c e m b e r   2 0 1 0
go v ernanc e
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s t an d ar d s   f o r   a u d i t o r s 
scope of the audit of the financial statements
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opinion on financial statements
in   o ur   o pini o n 
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r e v e n u e    2 	 13525	 125	 13400	 13851 
c o s t  o f  s a l e s     	 12238	 21	 12217   12735
g r o s s 	p r o fi t   l o s s      	 1287	 104	 1183	 1116 
a d m i n i s t r a t i v e  e x p e n s e s    	 1099	 –	 1099   1130
s h a r e o f    l o s s e s   p r o fi t s  o f j o i n t v e n t u r e s  
a n d  a s s o c i a t e s    12 	 3	 –  3  9 
o p e r a t i n g 	p r o fi t   l o s s      6 	 185	 104	 81	 5
analysed as
u n d e r l y i n g  o p e r a t i n g  p r o fi t   l o s s      1 2 	 447	 35	 412	 401 
s e p a r a t e l y d i s c l o s e d  i t e m s    3 	 181	 69	 250   340
a c q u i s i t i o n  r e l a t e d  e x p e n s e s     13a 	 63	 –	 63   56
i m p a i r m e n t o f  g o o d w i l l     10 	 12	 –	 12   7
t a x a t i o n  o n  p r o fi t s  a n d i n t e r e s t o f  j o i n t   
v e n t u r e s  a n d  a s s o c i a t e s     12 	 6	 –	 6   3
  	 	 185	 104	 81	 5
f i n a n c i a l  i n c o m e     4    	 69	 72 
f i n a n c i a l  e x p e n s e s     4    	 186  161
n e t 	fi n a n c i a l 	e x p e n s e s         	 117   89
l o s s	b e f o r e 	t a x         	 36   94
t a x a t i o n   c h a r g e   c r e d i t    7    	 50  42 
l o s s	f o r 	t h e 	y e a r 	f r o m 	c o n t i n u i n g 	o p e r a t i o n s         	 86  52
discontinued operation
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l o s s	f o r 	t h e 	y e a r         	 104   66
attributable to
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u n d e r l y i n g 	p r o fi t 	b e f o r e 	t a x         	 337	 324   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
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f o r e i g n e x c h a n g e  t r a n s l a t i o n        	 88  129  
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–  m o v e m e n t  i n f a i r  v a l u e        25j 	 33 	  60
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f o r e i g n  e x c h a n g e  g a i n s r e c y c l e d t h r o u g h  t h e  c o n s o l i d a t e d i n c o m e  s t a t e m e n t      	 6  – 
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d e f e r r e d  t a x  o n  i t e m s  t a ke n d i r e c t l y  t o  e q u i t y         7iii 	 9  105 
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t o t a l 	c o m p r e h e n s i v e 	e x p e n s e 	f o r 	t h e 	y e a r         	 177   245
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t o t a l         	 177   245
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p r o p e r t y  p l a n t  a n d  e q u i p m e n t       11  	 1012    964   926  
i n v e s t m e n t s  i n  j o i n t  v e n t u r e s  a n d a s s o c i a t e s      12  	 211    112   114  
o t h e r  i n v e s t m e n t s       12  	 79	  77   56  
t r a d e  a n d  o t h e r  r e c e i v a b l e s      16  	 156    194   210  
r e t i r e m e n t  b e n e fi t  a s s e t      5c  	 1   1    17 
d e r i v a t i v e  fi n a n c i a l  i n s t r u m e n t s      25i  	 21	  13   48  
d e f e r r e d  t a x  a s s e t s       14  	 114    211   205  
      	 6253	   6309   6005  
c u r r e n t 	a s s e t s
i n v e n t o r i e s       15  	 49	  51   51  
o t h e r  i n v e s t m e n t s        17  	 – 	  36   29  
t r a d e  a n d  o t h e r  r e c e i v a b l e s      16  	 1404    1482   1599  
i n c o m e  t a x  r e c o v e r a b l e       	 34 	  30    29  
d e r i v a t i v e  fi n a n c i a l  i n s t r u m e n t s       25i  	 144 	  271   273  
c a s h  a n d  c a s h e q u i v a l e n t s      17  	 1304	   790   1130 
a s s e t s  c l a s s i fi e d  a s  h e l d f o r  s a l e       18  	 57	  126   157  
      	 2992 	   2786    3268  
t o t a l 	a s s e t s       	 9245    9095   9273 
c u r r e n t	l i a b i l i t i e s        
i n t e r e s t  b e a r i n g  l o a n s  a n d  b o r r o w i n g s      19  	 757   327   99
r e t i r e m e n t  b e n e fi t s       5c  	 5  3  2
d e r i v a t i v e  fi n a n c i a l  i n s t r u m e n t s       25i  	 122  284  178
t r a d e  a n d  o t h e r  p a y a b l e s       20  	 4301  4220  4073
p r o v i s i o n s       21  	 236  189  235
i n c o m e  t a x  p a y a b l e       	 84  67   89
l i a b i l i t i e s  c l a s s i fi e d  a s  h e l d f o r  s a l e       18  	 31  59   22
      	 5536   5149   4698
n o n  c u r r e n t	l i a b i l i t i e s
i n t e r e s t  b e a r i n g  l o a n s  a n d  b o r r o w i n g s      19  	 796   801   1167
r e t i r e m e n t  b e n e fi t s       5c  	 489  498  268
d e r i v a t i v e  fi n a n c i a l  i n s t r u m e n t s       25i  	 23  18   50
t r a d e  a n d  o t h e r  p a y a b l e s       22  	 93  108   149
p r o v i s i o n s       21  	 307   250   180
d e f e r r e d  t a x  l i a b i l i t i e s       14  	 28  97   235
      	 1736   1772  2049
t o t a l 	l i a b i l i t i e s       	 7272   6921   6747
n e t 	a s s e t s       	 1973 	   2174    2526  
e q u i t y
s h a r e  c a p i t a l       23  	 112 	  112    112 
c o n v e r t i b l e  b o n d  r e s e r v e      24  	 83	  –    – 
o t h e r  r e s e r v e s       24  	 2772    2775   2749 
r e t a i n e d  d e fi c i t       24  	 995    716   340
t o t a l 	e q u i t y 	a t t r i b u t a b l e 	t o	e q u i t y	h o l d e r s 	o f	t h e	p a r e n t       24  	 1972	   2171   2521 
n o n  c o n t r o l l i n g 	i n t e r e s t s      24  	 1	  3    5 
t o t a l 	e q u i t y       24  	 1973	   2174   2526 
t h e   fi n a n c i a l   s t at e m e n t s   w e r e   ap p r o v e d   b y   a   d ul y   a u t h o r i s e d   c o m mi t t e e   o f   t h e   b o ar d   o f   d ir e c t o r s   o n   1   d e c e m b e r   2 0 1 0   a n d   s i g n e d   o n   i t s    
b e h al f   b y 
p a u l 	b o w t e l l
c h i e f f i n a n c i a l  o f fi c e r  
financial statements
consolidated balance sheet
a t 3 0  s e p t e m b e r  2 0 1 0 wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  67
consolidated statement of changes in equity
      c o n v e r t i b l e         	 e q u i t y   n o n  
    s h a r e  b o n d   m e r g e r   t r a n s l a t i o n   h e d g i n g  r e t a i n e d	 h o l d e r s   c o n t r o l l i n g  
    c a p i t a l  r e s e r v e   r e s e r v e  r e s e r v e  r e s e r v e   d e fi c i t	 o f 	 p a r e n t   i n t e r e s t s	 t o t a l
    £m   £m  £m   £m   £m  £m 	 £ m 	   £m	 £ m	
a t  1 o c t o b e r  2 0 0 8  
 a s  p r e v i o u s l y r e p o r t e d     112    –    2490    232    27    270 	 2591	   5  	 2596  
r e s t a t e m e n t   n o t e 1  b   i i       –  –   –   –   –   70 	 70   –  	 70
r e s t a t e d   b a l a n c e  a t
1  o c t o b e r  2 0 0 8     112   –   2490   232   27   340 	 2521	   5  	 2526 	
 l o s s   p r o fi t  f o r t h e y e a r  
 a s  p r e v i o u s l y r e p o r t e d     –   –    –   –   –    25	 25  1  	 24
r e s t a t e m e n t   n o t e 1  b   i i       –   –   –   –    –   42	 42   – 	 42
r e s t a t e d   l o s s   p r o fi t  f o r  t h e  y e a r     –    –   –   –    –   67	 67  1  	 66
o t h e r 	c o m p r e h e n s i v e 		
i n c o m e   e x p e n s e  	f o r 	t h e 	y e a r
o t h e r  c o m p r e h e n s i v e  i n c o m e   e x p e n s e     –    –   –   128    102  206 	 180     1 	 179
r e s t a t e d  t o t a l c o m p r e h e n s i v e   
i n c o m e   e x p e n s e   f o r t h e y e a r     –   –   –   128   102   273 	 247  2  	 245
t r a n s a c t i o n s 	w i t h 	o w n e r s
s h a r e  b a s e d  p a y m e n t  
 n e t o f d e f e r r e d  t a x     –    –    –    –    –    16  	 16	  –  	 16	
d i v i d e n d s     –   –   –   –   –   107 	 107   3	 110
a c q u i s i t i o n  o f n o n  c o n t r o l l i n g  i n t e r e s t s   –   –    –   –    –    12	 12   1 	 13
r e s t a t e d  b a l a n c e a t  
3 0  s e p t e m b e r  2 0 0 9       112   –    2490    360    75   716 	 2171	   3  	 2174 	
      c o n v e r t i b l e         	 e q u i t y   n o n  
    s h a r e  b o n d   m e r g e r   t r a n s l a t i o n   h e d g i n g  r e t a i n e d   h o l d e r s   c o n t r o l l i n g  
    c a p i t a l  r e s e r v e   r e s e r v e  r e s e r v e  r e s e r v e   d e fi c i t   o f 	 p a r e n t   i n t e r e s t s	 t o t a l
    £m    £m   £m   £m   £m  £m 	 £ m 	   £m	 £ m 	
a t  1 o c t o b e r  2 0 0 9  
 a s  p r e v i o u s l y r e p o r t e d     112   –    2490   360    75  604 	 2283	   3 	 2286 	
r e s t a t e m e n t   n o t e 1  b   i i       –   –   –   –   –   112 	 112   –  	 112
r e s t a t e d   b a l a n c e  a t  1  o c t o b e r  2 0 0 9     112    –    2490    360    75   716 	 2171	   3  	 2174  
l o s s f o r  t h e y e a r    –    –    –    –    –    104 	 104   –  	 104
o t h e r	c o m p r e h e n s i v e		
 e x p e n s e   i n c o m e 	f o r	t h e 	y e a r
o t h e r c o m p r e h e n s i v e   
 e x p e n s e   i n c o m e  f o r t h e y e a r    –    –    –    59   56    70 	 73  –  	 73
t o t a l c o m p r e h e n s i v e   
 e x p e n s e   i n c o m e  f o r t h e y e a r    –    –    –    59   56    174 	 177   –  	 177
t r a n s a c t i o n s 	w i t h 	o w n e r s
s h a r e  b a s e d  p a y m e n t  
 n e t o f d e f e r r e d  t a x     –    –    –    –    –    20 	 20	  –  	 20	
a c q u i s i t i o n  o f o w n  s h a r e s     –    –    –    –    –    7 	 7  –  	 7
d i v i d e n d s      –   –   –    –   –   118 	 118   2	 120
i s s u e  o f c o n v e r t i b l e  b o n d s
 n e t  o f d e f e r r e d  t a x      –   83   –   –   –    –  	 83	  –	 83  
a t 	3 0 	s e p t e m b e r	2 0 1 0   	 112	 83 		 2490		 301		 19		 995	 1972 		 1 		 1973	
d e t a il s   o f   r e s e r v e   m o v e m e n t s   a r e   s e t   o u t   in   n o t e   2 4   t o   t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s  wwwtuitravelplccom
68  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
            r e s t a t e d
          y e a r 	 e n d e d   y e a r  e n d e d
          3 0 	 s e p t e m b e r   3 0  s e p t e m b e r
          2 0 1 0   2 0 0 9
        no t e  £ m   £m
l o s s	f o r 	t h e	y e a r        	 104   66
a d j u s t m e n t 	f o r 
d e p r e c i a t i o n  a n d a m o r t i s a t i o n        1011 	 261	  287  
i m p a i r m e n t o f  i n t a n g i b l e  a s s e t s  a n d  p r o p e r t y   p l a n t a n d e q u i p m e n t         1011 	 27 	  132  
e q u i t y  s e t t l e d  s h a r e  b a s e d  p a y m e n t  e x p e n s e s         5d 	 14 	  16 
l o s s   p r o fi t   o n  s a l e  o f p r o p e r t y   p l a n t  a n d  e q u i p m e n t        6   	 1 	  12
s h a r e  o f  l o s s   p r o fi t   o f  j o i n t  v e n t u r e s  a n d  a s s o c i a t e s        12   	 3 	  9
l o s s   g a i n   o n  f o r e i g n  e x c h a n g e          6  	 14 	  23
c h a n g e  i n v a l u e  o f  t r a d e  i n v e s t m e n t        12   	 30   –  
d i v i d e n d s  r e c e i v e d  f r o m j o i n t v e n t u r e s a n d  a s s o c i a t e s         12  	 9	  10 
f i n a n c i a l  i n c o m e         4   	 69   72
f i n a n c i a l  e x p e n s e s         4   	 186	  161 
l o s s  f r o m  d i s c o n t i n u e d  o p e r a t i o n         8   	 18 	  14 
t a x a t i o n         7   	 50 		  42
o p e r a t i n g 	p r o fi t 	b e f o r e 	c h a n g e s	i n	w o r k i n g 	c a p i t a l 	a n d 	p r o v i s i o n s         	 380	  396  
d e c r e a s e   i n c r e a s e   i n i n v e n t o r i e s         	 1	  2
d e c r e a s e  i n t r a d e  a n d  o t h e r  r e c e i v a b l e s        	 34	  93 
i n c r e a s e   d e c r e a s e  i n t r a d e a n d  o t h e r  p a y a b l e s         	 100	  141
i n c r e a s e   d e c r e a s e  i n p r o v i s i o n s  a n d  e m p l o y e e  b e n e fi t s         	 93	  23
c a s h 	fl o w s 	f r o m 	o p e r a t i o n s         	 608	  323  
i n t e r e s t  p a i d          	 59  68
i n t e r e s t  r e c e i v e d         	 2	  6  
i n c o m e  t a x e s  p a i d         	 34   43
c a s h 	fl o w s 	f r o m 	o p e r a t i n g 	a c t i v i t i e s         	 517    218  
i n v e s t i n g 	a c t i v i t i e s
p r o c e e d s  f r o m  s a l e  o f  p r o p e r t y  p l a n t   a n d  e q u i p m e n t        	 26 	  161  
p r o c e e d s  f r o m  d i s p o s a l  o f a s s o c i a t e d u n d e r t a k i n g s  n e t o f  c a s h d i s p o s e d  o f      	 	 1	  –  
a c q u i s i t i o n  o f  s u b s i d i a r i e s n e t  o f  c a s h  a c q u i r e d         13b 	 51   48
a c q u i s i t i o n  o f  n o n  c o n t r o l l i n g i n t e r e s t s         	 –	  3
p r o c e e d s  f r o m  o t h e r  i n v e s t m e n t s         	 9	  – 
i n v e s t m e n t  i n j o i n t  v e n t u r e s   a s s o c i a t e s  a n d  o t h e r  i n v e s t m e n t s         	 90  51
a c q u i s i t i o n  o f p r o p e r t y   p l a n t a n d  e q u i p m e n t  a n d  s o f t w a r e        	 204   234
c a s h 	fl o w s 	f r o m 	i n v e s t i n g 	a c t i v i t i e s         	 309   175
f i n a n c i n g 	a c t i v i t i e s
p r o c e e d s  f r o m  n e w l o a n s a n d  d e p o s i t s  t a ke n         	 768	  17  
r e p a y m e n t  o f  b o r r o w i n g s         	 257  280
r e p a y m e n t  o f  fi n a n c e  l e a s e l i a b i l i t i e s         	 31  22
d i v i d e n d s  p a i d  t o  o r d i n a r y  a n d  n o n  c o n t r o l l i n g i n t e r e s t s        24     120   110
a c q u i s i t i o n  o f s h a r e s  f o r  s h a r e  b a s e d  p a y m e n t s         24   	 7  –  
c a s h 	fl o w s 	f r o m 	fi n a n c i n g 	a c t i v i t i e s         	 353	 395
n e t 	i n c r e a s e   d e c r e a s e 	i n	c a s h	a n d 	c a s h	e q u i v a l e n t s         	 561	  352
c a s h  a n d  c a s h e q u i v a l e n t s  a t s t a r t o f  t h e y e a r         17  	 790	  1130  
r e c l a s s i fi c a t i o n  o f c a s h  t o a s s e t s  c l a s s i fi e d  a s  h e l d  f o r s a l e         	 –	  4
e f f e c t  o f f o r e i g n  e x c h a n g e  o n c a s h  h e l d        	 47  16 
c a s h 	a n d 	c a s h 	e q u i v a l e n t s 	a t 	e n d 	o f 	t h e 	 y e a r	        17   	 1304   790 
m o v e m e n t s   in   c a s h   a n d   n e t   d e b t   a r e   p r e s e n t e d   in   n o t e   2 6    
financial statements
consolidated statement of cash flows
f o r t h e y e a r  e n d e d  3 0  s e p t e m b e r  2 0 1 0 wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  69
notes to the consolidated financial statements
1 accounting policies
t h e   ac c o un t in g   p o li c i e s   ad o pt e d   in   t h e   p r e p ar at i o n   o f   t h e s e  
c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   a r e   c o n s i s t e n t   w i t h   t h o s e   f o ll o w e d  
in   t h e   p r e p ar at i o n   o f   t h e   g r o up ’ s   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s 
f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9    e x c e pt   f o r   t h e   ad o pt i o n   
o f   t h e   f o ll o w in g   n e w   int e r n a t i o n a l   f in an c i a l   r e p o r t in g   s t an d ar d s    
 if r s    a n d   in t e r p r e t at i o n s   t h at   a r e   a p p li c a b l e   f o r   t h e   y ea r   e n d e d   
3 0   s e pt e m b e r   2 0 1 0 
ias 1 revised presentation of financial statements
t h e   g r o up   h a s   p r e s e n t e d   f o r   t h e   fi r s t   t im e   a   c o n s o li d at e d   s t at e m e n t 
o f   c o m p r e h e n s i v e   in c o m e   a n d   a   c o n s o li d at e d   s t at e m e n t   o f   c h an g e s   
in   e q ui t y      t h e   c o n s o li d at e d   s t at e m e n t   o f   c o m p r e h e n s i v e   in c o m e 
r e p l ac e s   t h e   c o n s o li d at e d   s t at e m e n t   o f   r e c og ni s e d   in c o m e   an d 
e x p e n s e    s o r ie       t hi s   r e p r e s e n t s   a   c h an g e   f r o m   t h e   r e q uir e m e n t   t o 
p r e s e n t   o nl y   o n e   fi n a n c i a l   s t at e m e n t    a   s o r ie   o r   a   s t at e m e n t   o f   a ll 
c h an g e s   in   e q ui t y   a s   a   p r im a r y   s t at e m e n t      c o m p a r at i v e   in f o r m a t i o n  
h a s   b e e n   r e  p r e s e n t e d   s o   t h at   i t   i s   in   c o n f o r mi t y   w i t h   t h e   r e v i s e d 
s t a n d ar d      t h e   r e v i s e d   s t a n d ar d   r e q uir e s   t hi s   s t at e m e n t   t o   p r e s e n t   
a ll   i t e m s   o f   r e c og ni s e d   in c o m e   a n d   e x p e n s e    e i t h e r   in   o n e   s in g l e  
s t at e m e n t   o r   in   t w o   link e d   s t at e m e n t s      t h e   g r o up   h a s   e l e c t e d   t o 
p r e s e n t   t w o   s t at e m e n t s 
t h e   r e v i s e d   s t a n d ar d   p r o hibi t s   t h e   p r e s e n t at i o n   o f   i t e m s   o f   in c o m e 
a n d   e x p e n s e s    t h at   i s    ‘ n o n  o w n e r   c h an g e s   in   e q ui t y ’    in   t h e 
s t at e m e n t   o f   c h an g e s   in   e q ui t y    r e q uir in g   ‘ n o n  o w n e r   c h an g e s   in  
e q ui t y ’   t o   b e   p r e s e n t e d   s e p ar at e l y   f r o m   o w n e r   c h an g e s   in   e q ui t y   in    
a   c o n s o li d at e d   s t at e m e n t   o f   c o m p r e h e n s i v e   in c o m e      a s   a   r e s ul t   t h e 
g r o up   p r e s e n t s   in   t h e   c o n s o li d at e d   s t at e m e n t   o f   c h an g e s   in   e q ui t y    
a ll   o w n e r   c h an g e s   in   e q ui t y    w h e r ea s   a ll   n o n  o w n e r   c h an g e s   in   e q ui t y  
a r e   p r e s e n t e d   in   t h e   c o n s o li d at e d   s t at e m e n t   o f   c o m p r e h e n s i v e 
in c o m e      c o m p a r at i v e   in f o r m a t i o n   h a s   b e e n   r e  p r e s e n t e d   s o   t h at   i t   
i s   a l s o   in   c o n f o r mi t y   w i t h   t h e   r e v i s e d   s t a n d ar d      a s   t h e   c h an g e   in 
ac c o un t in g   p o li c y   o nl y   im p ac t s   p r e s e n t at i o n    t h e r e   i s   n o   im p ac t    
o n   t h e   g r o up ’ s   r e s ul t s   f o r   e i t h e r   y ea r   o r   l o s s   p e r   s h a r e 
ias 27 amended 2008 consolidated and separate  
financial statements
t h e   r e v i s e d   s t a n d ar d   r e q uir e s   t h e   e f f e c t s   o f   a ll   t r a n s ac t i o n s   w i t h   
n o n  c o n t r o llin g   in t e r e s t s   t o   b e   r e c o r d e d   in   e q ui t y   i f   t h e r e   i s   n o   c h an g e 
in   c o n t r o l      t h e s e   t r a n s ac t i o n s   w ill   n o   l o n g e r   r e s ul t   in   g o o d w ill   o r   g a in s  
a n d   l o s s e s      t h e   s t a n d ar d   a l s o   s p e c i fi e s   t h e   ac c o un t in g   w h e n   c o n t r o l   i s  
l o s t      a n y   r e m a inin g   in t e r e s t   in   t h e   e n t i t y   i s   r e  m ea s ur e d   t o   f a ir   v a lu e 
a n d   a   g a in   o r   l o s s   i s   r e c og ni s e d   in   p r o fi t   o r   l o s s      t h e r e   i s   n o   m a t e r i a l  
im p ac t   o n   t h e   g r o up ’ s   r e s ul t s   f o r   e i t h e r   y ea r   o r   l o s s   p e r   s h a r e 
ifrs 3 2008 business combinations
if r s   3    2 0 0 8    b u s in e s s   c o m bin at i o n s    a l s o   s t at e d   a s   if r s   3    
 r e v i s e d     c h an g e s   t h e   t r eat m e n t   o f   in c i d e n t a l   ac q ui s i t i o n   e x p e n s e s  
a n d   d e f e r r e d   c o n s i d e r at i o n   p a y m e n t s   w hi c h   a r e   c o n t in g e n t   o n 
c o n t in u e d   e m p l o y m e n t    t h e   m ea s ur e m ent   o f   c o n s i d e r at i o n   p a y ab l e  
a n d   t h e   t r eat m e n t   o f   c h an g e s   t o   t h e   a m o un t   o f   c o n s i d er at i o n   p a y ab l e  
t hi s   h a s   r e s ul t e d   in   a   t o t a l   o f   £ 9 m   b e in g   e x p e n s e d   in   t h e   c o n s o li d at e d 
in c o m e   s t at e m e n t   w hi c h   w o ul d   p r e v i o u s l y   h a v e   b e e n   c api t a li s e d   a s 
p ar t   o f   t h e   in v e s t m e n t   c o s t   in   a n   ac q uir e d   b u s in e s s      t h e   fi n a n c i a l  
im p ac t   o f   t hi s   r e v i s e d   s t a n d ar d   h a s   b e e n   in c lu d e d   in   t h e   ac q ui s i t i o n  
r e l a t e d   e x p e n s e s   lin e   o f   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t      t h e 
r e v i s e d   s t a n d ar d   i s   o nl y   a p p li c a b l e   p r o s p e c t i v e l y   f o r   ac q ui s i t i o n s    
af t e r   1   o c t o b e r   2 0 0 9  
a d o pt i o n   o f   t h e   r e v i s e d   s t a n d ar d   h a s   h ad   t h e   f o ll o w in g   im p ac t   
  y e a r 	 e n d e d  
  3 0 	 s e p t e m b e r 	 2 0 1 0
	 £ m 	  u n l e s s
	 o t h e r w i s e 	 s t a t e d 
l o s s b e f o r e  t a x  9
l o s s f o r  t h e  y e a r a t t r i b u t a b l e  t o e q u i t y   
h o l d e r s  o f t h e p a r e n t  9
d e c r e a s e i n t o t a l e q u i t y  7
b a s i c  a n d d i l u t e d l o s s  p e r s h a r e  p e n c e    07
c o n t in g e n t   c o n s i d er at i o n   ar i s in g   in   a   b u s in e s s   c o m bin at i o n   t h at   h ad 
b e e n   ac c o un t e d   f o r   in   ac c o r d a n c e   w i t h   if r s   3    2 0 0 4    t h at   h a s   n o t  
b e e n   s e t t l e d   o r   o t h e r w i s e   r e s o l v e d   at   t h e   e f f e c t i v e   d a t e   o f   if r s   3 
 2 0 0 8     c o n t in u e s   t o   b e   ac c o un t e d   f o r   in   ac c o r d a n c e   w i t h   if r s   3 
 2 0 0 4       a s   s u c h    t h e r e   i s   n o   c h an g e   t o   t h e   g r o up ’ s   r e s ul t s   o r   l o s s   
p e r   s h a r e    f o r   t hi s   ac c o un t in g   p o li c y 
ifrs 8 operating segments
if r s   8   r e p l ac e s   i a s   1 4   s e g m e n t   r e p o r t in g   a n d   r e q uir e s   t h at   an  
e n t i t y ’ s   o p e r at in g   s e g m e n t s   a r e   r e p o r t e d   o n   t h e   s a m e   b a s i s   a s   
t h e   in t e r n a ll y   r e p o r t e d   in f o r m a t i o n   t h at   i s   p r o v i d e d   t o   t h e   c hi e f  
o p e r at in g   d e c i s i o n   m a k e r      t h e   c hi e f   o p e r at in g   d e c i s i o n   m a k e r   h a s 
b e e n   i d e n t i fi e d   a s   t h e   g r o up   m a n a g e m e n t   b o ar d    g mb       f o ll o w in g 
t h e   ad o pt i o n   o f   if r s   8    t h e   g r o up   h a s   r e v i s e d   i t s   r e p o r t e d   o p e r at in g  
s e g m e n t s   a n d   p r o v i d e d   f ur t h e r   in f o r m a t i o n   in   r e s p e c t   o f   t h e s e  
s e g m e n t s      t h e   g r o up   h a s   d e c i d e d   t o   ad o pt   ea r l y   a n   a m e n dm e n t   t o  
if r s   8   o p e r at in g   s e g m e n t s   w hi c h   s t at e s   t h at   s e g m e n t   in f o r m a t i o n  
f o r   t o t al   a s s e t s   ar e   o nl y   r e q uir e d   i f   s u c h   in f o r m a t i o n   i s   r e g ul ar l y  
r e p o r t e d   t o   t h e   c hi e f   o p e r at in g   d e c i s i o n   m a k e r      t hi s   n e w   s t a n d ar d 
o nl y   im p ac t s   p r e s e n t at i o n al   a s p e c t s      t h e r e   i s   n o   im p ac t   o n   t h e 
g r o up ’ s   r e s ul t s   f o r   e i t h e r   y ea r   o r   l o s s   p e r   s h a r e   in   r e s p e c t   o f   t hi s    
n e w   s t a n d ar d 
ias 23 revised borrowing costs 
t h e   s t a n d ar d   h a s   b e e n   r e v i s e d   t o   r e q uir e   c api t a li s at i o n   o f   b o r r o w in g 
c o s t s   w h e n   s u c h   c o s t s   r e l a t e   t o   a   q u ali f y in g   a s s e t      t h e   r e v i s i o n   t o   t hi s  
s t a n d ar d   h a s   h ad   n o   e f f e c t   o n   t h e   fi n a n c i a l   p o s i t i o n   o r   p e r f o r m an c e 
o f   t h e   g r o up   a s   b o r r o w in g   c o s t s   f o r   q u ali f y in g   a s s e t s   h a v e   a lr ead y 
b e e n   c api t a li s e d   un d e r   t h e   p r e v i o u s l y   a ll o w e d   a l t e r n a t i v e   t r eat m e n t 
ifrs 7 financial instruments – disclosures amendment 
if r s   7   h a s   b e e n   a m e n d e d   r e q uir in g   e nh a n c e d   d i s c l o s ur e   in   r e l a t i o n   
t o   fi n a n c i a l   in s t r um e n t s   a t   f a ir   v a lu e   a n d   li q ui d i t y   r i s k      f in an c i a l  
in s t r um e n t s   m ea s ur e d   at   f a ir   v a lu e   a r e   n o w   p r e s e n t e d   in   a   t a b l e  
ac c o r d in g   t o   a   t hr e e  t i e r   hi e r arc h y   t h at   p r i o r i t i s e s   t h e   v a lu at i o n  
t e c hni q u e s   u s e d   in   t h e   c al c ul a t i o n   o f   t h e ir   f a ir   v a lu e      f o r   fi n a n c i a l  
in s t r um e n t s   c l a s s i fi e d   in   t h e   t hir d   t i e r    a   r e c o n c ili at i o n   o f   t h e 
m o v e m e n t s   in   t h e   y ea r   i s   a l s o   r e q uir e d      t h e   c h an g e s   t o   t h e 
d i s c l o s ur e s   o f   li q ui d i t y   r i s k s   a r e   n o t   s i g ni fi c an t      t h e r e   i s   n o   im p ac t   
o n   t h e   g r o up ’ s   r e s ul t   f o r   e i t h e r   y ea r   o r   o n   l o s s   p e r   s h a r e   a s   a   r e s ul t   
o f   t h e   a m e n dm e n t   t o   t hi s   s t a n d ar d 
t h e   a m e n d e d   s t a n d ar d   d o e s   n o t   r e q uir e   t h e   p r e s e n t at i o n   o f 
c o m p ar at i v e   in f o r m a t i o n   in   t h e   y ea r   o f   ad o pt i o n   a n d   t h e   g r o up   
h a s   c h o s e n   t o   a p p l y   t hi s   o pt i o n 
ias 39 2008 financial instruments recognition  
and measurement
t h e   r e v i s e d   s t a n d ar d   a ll o w s   r e c l a s s i fi c at i o n   o f   in s t r um e n t s   in t o   an d 
o u t   o f   ‘ at   f a ir   v a lu e   t hr o u g h   p r o fi t   a n d   l o s s ’   in   c e r t a in   c irc um s t an c e s  
a n d   c l ar i fi e s   t h e   d e s i g n at i o n   o f   h e d g e s   a t   a   s e g m e n t   l e v e l      t h e r e   i s   
n o   im p ac t   o n   t h e   g r o up ’ s   r e s ul t s   f o r   e i t h e r   y ea r   o r   l o s s   p e r   s h a r e   a s    
a   r e s ul t   o f   t h e   r e v i s i o n   t o   t hi s   n e w   s t a n d ar d  wwwtuitravelplccom
70  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
 i i  	 r e s t a te m e n t
o n   1 0   a u g u s t   2 0 1 0    a s   p ar t   o f   i t s   un a u d i t e d   r e s ul t s   f o r   t h e   t hir d 
q u ar t e r    nin e   m o n t h s   e n d e d   3 0   j un e   2 0 1 0     t u i   t r a v e l   p l c   r e p o r t e d 
t h at   f o ll o w in g   c o m p l e t i o n   o f   t h e   in t e g r at i o n   o f   i t   s y s t e m s   in   i t s   
u k   m a in s t r ea m   b u s in e s s    i t   h ad   w r i t t e n   o f f   a   n um b e r   o f   l e g ac y 
r e c e i v ab l e   b al a n c e s   t h at   h ad   b uil t   up   o v e r   an   e x t e n d e d   p e r i o d   o f   
t im e    am oun t in g   in   t o t a l   t o   £ 2 9 m      t hi s   b al a n c e   w a s   r e p o r t e d   a s   
a   s e p ar at e l y   d i s c l o s e d   i t e m  
t h e   a u d i t   f o r   t h e   f ull   y ea r   e n d e d   s e pt e m b e r   2 0 1 0   hi g hli g h t e d   a 
f ur t h e r   £ 8 8 m   o f   ir r e c o v e r a b l e   b al a n c e s   t h at   n o w   n e e d   t o   b e   w r i t t e n 
o f f    g i v in g   a   t o t al   o f   £ 1 1 7 m      t h e s e   h a v e   a r i s e n   a s   a   r e s ul t   o f   f a ilur e s    
t o   r e c o n c il e   b al a n c e s   ad e q u at e l y   in   l e g ac y   s y s t e m s   in   t h e   r e t a il   a n d  
t o ur   o p e r at o r   b u s in e s s e s   in   t u i   u k      a s   a   r e s ul t    t u i   t r a v e l   p l c   h a s 
r e s t at e d   i t s   r e s ul t s   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9 
t h e   ad j u s t m e n t s   t o   t h e   r e s ul t s   a r e   n o n  c a s h   in   n at ur e   a n d   h a v e   n o 
im p ac t   o n   t h e   g r o up ’ s   c a s h   an d   n e t   d e b t   p o s i t i o n      a s   a   r e s ul t   o f  
p r o c e s s   im p r o v e m e n t s   d ur in g   t h e   y ea r    t h e   im p ac t   in   2 0 1 0   h a s   b e e n 
limi t e d   t o   £ 5 m  
t h e   t o t al   im p ac t   i s   s um m ar i s e d   in   t h e   t a b l e   b e l o w 
  2 0 1 0   2 0 0 9   p r e 2 0 0 9  t o t a l
  £ m   £m  £m  £m
r e v e n u e  o v e r s t a t e m e n t	 5   12  70   87
r e l e a s e  o f  
u n m a t c h e d  c r e d i t s	 –  30   –   30
t o t a l   5	 42	 70	 117 	
revenue overstatement
in   2 0 0 4    t h e   u k   t o ur   o p e r at o r    t h o m s o n    im p l e m e n t e d   a   n e w   r e t a il 
b o o k in g   s y s t e m   in t o   i t s   d i s t r ib u t i o n   n e t w o r k   o f   s h o p s    c all   c e n t r e s   
a n d   w e b s i t e      a s   p ar t   o f   t h at   im p l e m e n t at i o n    s o m e   c o n t r o l s   w e r e    
p u t   in   p l ac e   t o   e n s ur e   t h at   t h e   n e w   r e t a il   b o o k in g   s y s t e m   w a s  
r e c o r d in g   t h e   s a m e   d a t a   a s   t h e   e x i s t in g   t o ur   o p e r at in g   s y s t e m       
in   t h e   m a in    t h e s e   c o n t r o l s   o p e r at e d   w e ll   f o r   t h e   fi r s t   f e w   y ea r s    
o f   t h e   n e w   s y s t e m   a n d   a n y   d i f f e r e n c e s   f o un d   a s   p ar t   o f   t h e   r e c e n t  
in v e s t i g at i o n   w e r e   minim a l 
s ub s e q u e n t l y    a s   p ar t   o f   a   dr i v e   f o r   f ur t h e r   c o s t   s a v in g s   a n d 
e f fi c i e n c i e s    p r o c e s s e s   ar o un d   t h e   t w o   s y s t e m s   w e r e   s t r ea m lin e d   
r o l e s   w e r e   c o n s o li d at e d   a n d   p ar t s   o f   t h e   p r o c e s s   w e r e   t r a n s f e r r e d   
t o   a n   o u t s o urc e   p r o v i d e r   in   in d i a      a s   a   r e s ul t    i t   i s   n o w   un d e r s t o o d 
t h at   c o n t r o l   w ea k n e s s e s   a r o s e   a n d   t h e   l e v e l   o f   d i f f e r e n c e s   b e t w e e n 
t h e   t w o   s y s t e m s   g r e w      t h e s e   d i f f e r e n c e s   a r o s e   b e c a u s e   t r a n s ac t i o n 
d a t a   w a s   n o t   ac c ur at e l y   r e fl e c t e d   in   t h e   r e t a il   s h o p s      d i s c o un t s    
g i v e n   o n   t h e   p r i c e   o f   h o li d a y s    c an c e ll a t i o n   f e e s   a n d   admini s t r a t i o n  
f e e s   f o r   c h an g e s   t o   h o li d a y   b o o k in g s   w e r e   in ac c ur at e l y   r e c o r d e d   b y 
t r a v e l   a g e n t s   a s   a   p r i c e   c h an g e   a s   o p p o s e d   t o   b e in g   a ll o c at e d   t o   t h e  
r e l e v an t   c a t e g o r y   w i t hin   t h e   r e t a il   b o o k in g   s y s t e m      t hi s   l e d   t o   a n  
o v e r s t a t e m e n t   in   r e v e n u e   in   t h e   t o ur   o p e r at o r   a n d   a   mi s m a t c h   w i t h 
t h e   c a s h   ac t u all y   r e c e i v e d   f r o m   t h e   c u s t o m e r   t h at   w a s   b o o k e d   in   t h e  
r e t a il   b o o k in g   s y s t e m     
w h e n   t h e   t o ur i s m   b u s in e s s   o f   t u i   a g   m e r g e d   w i t h   f ir s t   c h oi c e 
h o li d a y s   p l c   o n   3   s e pt e m b e r   2 0 0 7    a   k e y   p ar t   o f   t h e   b u s in e s s   p l a n  
w a s   t h e   in t e g r at i o n   o f   t h e   t w o   u k   t o ur   o p e r a t o r   b u s in e s s e s    t h o m s o n 
a n d   f ir s t   c h oi c e      a s   p ar t   o f   t h at   b u s in e s s   m e r g e r   i t   w a s   d e c i d e d   t o  
c o  l o c at e   t h e   b u s in e s s e s   in   l u t o n    t h e   t h o m s o n   h ead q u ar t e r s    a n d 
in t e g r at e   t h e   f ir s t   c h oi c e   b u s in e s s   o n   t o   t h e   t h o m s o n   s y s t e m s      t h e 
s y s t e m s   c h an g e o v e r   o c c ur r e d   in   2 0 0 8   a n d   a s   a   r e s ul t   t h e   v o lum e s 
ias 7 statement of cash flows 
t h e   g r o up   h a s   ad o pt e d   ea r l y   t h e   a m e n dm e n t   t o   i a s   7   s t a t e m e n t   
o f   c a s h   fl o w s   in   r e s p e c t   o f   c a t e g o r i s at i o n   w i t hin   t h e   c o n s o li d at e d 
s t at e m e n t   o f   c a s h   fl o w s   o f   ac q ui s i t i o n   r e l a t e d   e x p e n s e s   w hi c h   a r e 
c h ar g e d   d ir e c t l y   t o   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t      £ 7 m   o f 
ac q ui s i t i o n   r e l a t e d   e x p e n s e s   h a v e   b e e n   in c lu d e d   w i t hin   c a s h   fl o w s  
f r o m   o p e r at in g   ac t i v i t i e s   in   t h e   y ea r      t h e r e   i s   n o   c h an g e   t o   t h e   p r i o r 
y ea r   c o n s o li d at e d   s t at e m e n t   o f   c a s h   fl o w s   a s   t h e s e   e x p e n s e s   w e r e  
in c lu d e d   w i t hin   t h e   c o s t   o f   t h e   b u s in e s s   c o m bin at i o n   in   ac c o r d a n c e 
w i t h   if r s   3    2 0 0 4    a n d   t h e r e f o r e   in c lu d e d   w i t hin   in v e s t in g   ac t i v i t i e s 
other changes
t h e   f o ll o w in g   ac c oun t in g   s t a n d ar d s   a n d   in t e r p r e t at i o n s   i s s u e d   b y   t h e 
in t e r n a t i o n al   a c c o un t in g   s t an d ar d s   b o ar d    i a s b    o r   in t e r n a t i o n a l 
f in an c i a l   r e p o r t in g   in t e r p r e t at i o n s   c o m mi t t e e    if r ic    h a v e   b e e n 
ad o pt e d   b y   t h e   g r o up   f r o m   1   o c t o b e r   2 0 0 9   w i t h   n o   s i g ni fi c a n t   im p ac t 
o n   c o n s o li d at e d   r e s ul t s   o r   fi n a n c i a l   p o s i t i o n 
•   a m e n dm e n t   t o   i a s   3 2    2 0 0 8    a n d   i a s   1   –   f in an c i a l   in s t r um e n t s   
p r e s e n t at i o n 
•   a m e n dm e n t   t o   i a s   3 2    2 0 0 8    a n d   i a s   1   –   p u t t a b l e   fi n a n c i a l  
in s t r um e n t s   a n d   o b li g at i o n s   a r i s in g   o n   li q ui d at i o n 
•   a m e n dm e n t   t o   i a s   3 9   f in an c i a l   in s t r um e n t s   –   r e c og ni t i o n   a n d 
m ea s ur e m e n t    e li g ib l e   h e d g e d   i t e m s 
•   a m e n dm e n t   t o   if r ic   9   a n d   i a s   3 9   –   e m b e d d e d   d e r i v a t i v e s 
•   a m e n dm e n t   t o   if r s   2   s h a r e  b a s e d   p a y m e n t   –   s c o p e   o f   if r s   2  
a n d   if r s   3    r e v i s e d    b u s in e s s   c o m bin at i o n s 
•   a m e n dm e n t   t o   i a s   3 8   in t an g ib l e   a s s e t s   –   c o n s e q u e n t i a l  
a m e n dm e n t s   a r i s in g   f r o m   if r s   3    r e v i s e d  
•   a m e n dm e n t   t o   if r ic   9   r ea s s e s s m e n t   o f   e m b e d d e d   d e r i v a t i v e s   – 
s c o p e   o f   if r ic   9   a n d   r e v i s e d   if r s   3 
•   a m e n dm e n t   t o   if r ic   1 4   –   p r e p a y m e n t s   o f   a   m inimum    
f un d in g   r e q uir e m e n t 
•   a m e n dm e n t   t o   if r ic   1 6   –   h e d g e s   o f   a   n e t   in v e s t m e n t   in   a    
f o r e i g n   o p e r a t i o n    
t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   a r e   p r e s e n t e d   in   t h e   g r o up ’ s 
p r e s e n t at i o n al   c ur r e n c y   o f   s t e r lin g    r o un d e d   t o   t h e   n ea r e s t   milli o n 
a statement of compliance
t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   f o r   t h e   y ea r   e n d e d    
3 0   s e pt e m b e r   2 0 1 0   h a v e   b e e n   p r e p a r e d   a n d   a p p r o v e d   b y   t h e 
d ir e c t o r s   in   ac c o r d a n c e   w i t h   int e r n a t i o n a l   f in an c i a l   r e p o r t in g 
s t an d ar d s   a s   ad o pt e d   b y   t h e   e ur o p ea n   uni o n    a d o pt e d   if r s s        
t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   w e r e   a p p r o v e d   o n   
1   d e c e m b e r   2 0 1 0 
b basis of preparation
 i  	 p a r e n t 	 c o m p a n y
t u i   t r a v e l   p l c    t h e   c o m p a n y    i s   a   c o m p an y   in c o r p o r a t e d   a n d 
d o mi c il e d   in   e n g l a n d   a n d   w a l e s   un d e r   t h e   c o m p a ni e s   a c t   1 9 8 5   an d 
li s t e d   o n   t h e   l o n d o n   s t o c k   e x c h a n g e      t h e   r e g i s t e r e d   o f fi c e   o f   t h e 
c o m p a n y   i s   t u i   t r a v e l   h o u s e    c r a w l e y   b u s in e s s   q u a r t e r    f l e min g  
w a y    c r a w l e y    w e s t   s u s s e x   r h 1 0   9 q l    
t h e   c o m p a n y   h a s   e l e c t e d   t o   p r e p ar e   i t s   p ar e n t   c o m p an y   fi n a n c i a l  
s t at e m e n t s   in   ac c o r d a n c e   w i t h   u k   g a a p     
financial statements
notes to the consolidated financial statements c o n t i n u e d wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  71
consolidated income statement
             l o s s f r o m  t h e
         u n d e r l y i n g   l o s s   y e a r f r o m
    c o s t  o f   o p e r a t i n g    o p e r a t i n g   b e f o r e  c o n t i n u i n g
y e a r 	 e n d e d   r e v e n u e  s a l e s    p r o fi t  l o s s    p r o fi t   t a x  o p e r a t i o n s
3 0 	 s e p t e m b e r 	 2 0 0 9   £ m  £ m  £ m   £ m  £ m   £ m
o r i g i n a l l y r e p o r t e d   13863   12705   37    443    52   10  
c o r r e c t i o n  12  30  42   42  42  42
r e s t a t e d  13851   12735   5   401    94   52  
earningsloss per share
  e a r n i n g s p e r  s h a r e –  u n d e r l y i n g  e a r n i n g s
  c o n t i n u i n g  o p e r a t i o n s    p e r s h a r e    
y e a r 	 e n d e d       b a s i c  d i l u t e d   b a s i c  d i l u t e d
3 0 	 s e p t e m b e r 	 2 0 0 9       p e n c e   p e n c e   p e n c e   p e n c e
o r i g i n a l l y r e p o r t e d       10   10   238   235
c o r r e c t i o n      38  38  38  37
r e s t a t e d      48   48   200   198
consolidated balance sheet
    3 0 s e p t e m b e r  2 0 0 9      3 0  s e p t e m b e r 2 0 0 8
   
  c u r r e n t t r a d e   c u r r e n t  t r a d e     c u r r e n t t r a d e   c u r r e n t t r a d e
  a n d o t h e r  a n d o t h e r    a n d o t h e r  a n d  o t h e r
  r e c e i v a b l e s   p a y a b l e s   e q u i t y   r e c e i v a b l e s  p a y a b l e s   e q u i t y
  £ m  £ m  £ m  £ m  £ m  £ m
o r i g i n a l l y r e p o r t e d   1536   4162   2286   1653   4057  2596
c o r r e c t i o n  54  58  112   54  16  70
r e s t a t e d  1482   4220   2174  1599   4073   2526
g oin g   t hr o u g h   t h e   s y s t e m s   in c r ea s e d      f ur t h e r m o r e    t h e   s t r at e g i c 
ini t i at i v e   t o   in c r ea s e   c o n t r o ll e d   d i s t r ib u t i o n   in   t h e   b u s in e s s   a l s o   m ea nt  
t h at   t h e   v o lum e s   g oin g   t hr o u g h   in t e r n a l   c h ann e l s   w e r e   g r o w in g 
s t ead il y      t h e s e   c h an g e s   c a u s e d   t h e   l e v e l   o f   o v e r s t a t e d   r e v e n u e   t o 
in c r ea s e    r eac hin g   a   p eak   in   2 0 0 8      s ub s e q u e n t l y    in   2 0 0 9   a s   a   r e s ul t   
o f   t h e   in t r o d u c t i o n   o f   a   n e w   f r o n t  e n d   s e llin g   s y s t e m   in   t h e   in  h o u s e 
r e t a il   s t o r e s    t i g h t e r   c o n t r o l s   w e r e   p l ac e d   o n   t h e   r e t a il   a g e n t   w h e r e b y 
d i s c o un t s    c an c e ll a t i o n   f e e s   a n d   admini s t r at i o n   f e e s   h ad   t o   b e   b o o k e d 
t o   t h e   a p p r o p r i a t e   c a t e g o r y   in   t h e   s y s t e m   a n d   ac c o r d in g l y   t h e s e 
o p e r at i o n al   c h an g e s   m ea n t   t h at   t h e   l e v e l   o f   o v e r s t a t e d   r e v e n u e  
s t a r t e d   t o   f a ll      f ur t h e r   ac t i o n s   t a k e n   in   2 0 1 0   f ur t h e r   im p r o v e d   
t h e   s i t u at i o n 
o v e r   a   p e r i o d   o f   s e v e n   y ea r s   t h e   p r e  2 0 0 9   l e v e l   o f   o v e r s t a t e d   r e v e n u e  
a m oun t e d   t o   £ 8 7 m   w i t h   £ 5 m   a r i s in g   in   2 0 1 0    £ 1 2 m   in   2 0 0 9   an d   t h e 
b al a n c e   o f   £ 7 0 m   p r i o r   t o   t h e   y ea r   e n d in g   3 0   s e pt e m b e r   2 0 0 9      t h e  
r e s ul t   o f   t h e   c o r r e c t i o n   o f   t hi s   r e v e n u e   o v e r s t a t e m e n t   h a s   b e e n   t o 
r e d u c e   t h e   2 0 0 9   p r o fi t   b y   £ 1 2 m   a n d   r e d u c e   t h e   o p e nin g   r e s e r v e s   a s  
at   1   o c t o b e r   2 0 0 8   b y   £ 7 0 m 
release of unmatched credits
a s   a   c o n s e q u e n c e   o f   t h e   s y s t e mi c   d e fi c i e n c i e s   in   t h e   r e v e n u e  
r e c og ni t i o n   p r o c e s s   t h at   r e s ul t e d   in   t h e   o v e r s t a t e m e n t   r e f e r r e d   t o 
a b o v e    unm a t c h e d   c r e d i t s   b uil t   up   in   t h e   b o o k s   o f   t h e   r e t a il e r      t h e s e  
unm a t c h e d   c r e d i t s   w e r e   d e e m e d   b y   u k   m a n a g e m e n t   t o   b e   s ur p lu s   t o 
r e q uir e m e n t s   in   2 0 0 9   an d   w e r e   ac c o r d in g l y   r e l ea s e d   t o   c o s t   o f   s a l e s    
in   t h e   p r o fi t   a n d   l o s s   ac c o un t   in   t h at   y ea r      h ad   t h e   s y s t e mi c   e r r o r s    
in   t h e   r e v e n u e   r e c og ni t i o n   p r o c e s s   b e e n   i d e n t i fi e d   a n d   ad dr e s s e d   at  
t h e   t im e    t h e s e   unm a t c h e d   c r e d i t s   w o ul d   n o t   h a v e   e x i s t e d   a s   t h e y  
w o ul d   h a v e   b e e n   a p p r o p r i a t e l y   m a t c h e d   o f f      i t   i s   n o w   e v i d e n t   t h at   
t h e   a n al y s i s   c ar r i e d   o u t    t h e   j u d g e m e n t s   m ad e   a n d   t h e   p r o c e s s e s  
un d e r t a k e n   at   t h e   t im e   t o   b o o k   t h e   r e l ea s e   o f   t h e s e   unm a t c h e d  
c r e d i t s   in   t h e   r e c o r d s   o f   t h e   e n t i t y   c o n c e r n e d   w e r e   in ap p r o p r i at e    
a n d   t h at   t h e   in f o r m a t i o n   p r o v i d e d   t o   b o t h   g r o up   m a n a g e m e n t   a n d    
t o   t h e   e x t e r n a l   a u d i t o r s   w a s   in ac c ur at e      a c c o r d in g l y    t h e   r e l ea s e   o f 
unm a t c h e d   c r e d i t s   h a s   n o w   b e e n   r e v e r s e d   in   t h e   r e s t at e d   in c o m e 
s t at e m e n t   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9 
tax 
t h e   a s s o c i at e d   t a x   b e n e fi t s   h a v e   n o t   b e e n   r e c og ni s e d   a s   t h e   l e g al  
e n t i t i e s   im p ac t e d   alr ead y   h ad   unr e c og ni s e d   t a x   l o s s e s      t h e   e f f e c t   o f 
t h e   r e s t at e m e n t   i s   t h e r e f o r e   t o   in c r ea s e   t h e   unr e c og ni s e d   t a x   l o s s e s     
t h e   t a b l e s   b e l o w   s h o w   t h e   im p ac t   o f   t h e   r e s t at e m e n t   o n   t h e   r e l e v an t  
c o n s o li d at e d   in c o m e   s t at e m e n t   a n d   b al a n c e   s h e e t   lin e s 
p r i o r   y ea r   c o m p ar at i v e s   h a v e   b e e n   r e s t at e d   f o r   t h e   f o ll o w in g   i t e m s     
r e l at e d   n o t e s   t o   t h e   fi n a n c i a l   s t at e m e n t s   in   r e s p e c t   o f   t h e   b al a n c e  
s h e e t   at   3 0   s e pt e m b e r   2 0 0 8   h a v e   b e e n   d i s c l o s e d   w h e r e   t h e   r e l e v an t  
n o t e   h a s   b e e n   r e s t at e d 
 i i i  	 p r o 	 f o r m a 	 fi n a nc i a l 	 i n f o r m a t io n
a n   un a u d i t e d   p r o   f o r m a   in c o m e   s t at e m e n t   f o r   t h e   y ea r   e n d e d    
3 0   s e pt e m b e r   2 0 1 0   h a s   b e e n   p r e p a r e d   b y   t h e   d ir e c t o r s    o n   t h e   p r o  
f o r m a   b a s i s   d e s c r ib e d   b e l o w      t hi s   i s   t o   illu s t r at e   t h e   e s t im at e d  
fi n a n c i a l   e f f e c t   o n   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   in   t h e   c ur r e n t  
y ea r   o f   t h e   unp r e c e d e n t e d   c l o s ur e   o f   u k   an d   e ur o p ea n   a ir s p ac e  
f o ll o w in g   t h e   e r upt i o n   o f   t h e   e y j a f j a ll a j o e k ull   v o l c an o   in   i c e l a n d   in   a p r il 
2 0 1 0      d ur in g   t hi s   p e r i o d   o f   c l o s ur e   a n d   t h e   p e r i o d   t o   r e s um pt i o n   o f   
a   f ull   fl y in g   s c h e d ul e    f r o m   1 5   a p r il   t o   c irc a   2 3   a p r il   2 0 1 0    t h e   g r o up ‘ s  
a bili t y   t o   ea r n   r e v e n u e   f r o m   p ac k a g e   h o li d a y s   a n d   fl i g h t s   w a s   s e v e r e l y  
im p ac t e d   a n d   t h e   g r o up   in c ur r e d   c o s t s   a s s o c i at e d   w i t h   d i s r upt i o n  
c a u s e d   t o   h o li d a y s   in   p r og r e s s   a n d   s t r a n d e d   p a s s e n g e r s  wwwtuitravelplccom
72  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
 i v  	 u n d e r l y i n g 	 m e a s u r e s 	 o f 	 p r o fi t s 	 a n d 	 l o s s e s
t h e   g r o up   b e li e v e s   t h at   un d e r l y in g   o p e r at in g   p r o fi t    un d e r l y in g   
p r o fi t   b e f o r e   t a x   a n d   un d e r l y in g   ea r nin g s   p e r   s h a r e   p r o v i d e   ad d i t i o n al 
g ui d an c e   t o   s t at u t o r y   m ea s ur e s   t o   h e lp   un d e r s t a n d   t h e   un d e r l y in g  
p e r f o r m an c e   o f   t h e   b u s in e s s   d ur in g   t h e   fi n a n c i a l   y ea r      t h e   t e r m 
un d e r l y in g   i s   n o t   d e fi n e d   un d e r   if r s      i t   i s   a   m ea s ur e   t h at   i s   u s e d   b y 
m a n a g e m e n t   t o   a s s e s s   t h e   un d e r l y in g   p e r f o r m an c e   o f   t h e   b u s in e s s  
in t e r n a ll y   a n d   i s   n o t   in t e n d e d   t o   b e   a   s ub s t i t u t e   m ea s ur e   f o r   ad o pt e d  
if r s s ’   g a a p   m ea s ur e s      t h e   g r o up   d e fi n e s   t h e s e   un d e r l y in g 
m ea s ur e s   a s   f o ll o w s 
un d e r l y in g   o p e r a t in g   p r o fi t   i s   o p e r at in g   p r o fi t   o r   l o s s   f r o m    
c o n t in uin g   o p e r a t i o n s   s t at e d   b e f o r e   s e p ar at e l y   d i s c l o s e d   i t e m s    
 n o t e   3     ac q ui s i t i o n   r e l a t e d   e x p e n s e s    im p a ir m e n t   o f   g o o d w ill  
in t e r e s t   a n d   t a x a t i o n   o n   t h e   g r o up ’ s   s h a r e   o f   t h e   r e s ul t s   o f   j oin t  
v e n t ur e s   a n d   a s s o c i at e s   
un d e r l y in g   p r o fi t   b e f o r e   t a x   i s   p r o fi t   o r   l o s s   f r o m   c o n t in uin g 
o p e r at i o n s   b e f o r e   t a x a t i o n    g r o up   a n d   s h a r e   o f   j oin t   v e n t ur e s   a n d  
a s s o c i at e s     ac q ui s i t i o n   r e l a t e d   i t e m s    im p a ir m e n t   o f   g o o d w ill    t h e 
in t e r e s t   e x p e n s e   o f   j oin t   v e n t ur e s   a n d   a s s o c i at e s   a n d   s e p ar at e l y  
d i s c l o s e d   i t e m s   in c lu d e d   w i t hin   b o t h   t h e   o p e r at in g   r e s ul t    n o t e   3     
a n d   n e t   fi n a n c i a l   e x p e n s e s    n o t e   4  
un d e r l y in g   ea r nin g s   u s e d   in   t h e   c al c ul a t i o n   o f   un d e r l y in g   ea r nin g s   
p e r   s h a r e   i s   p r o fi t   af t e r   t a x   f r o m   c o n t in uin g   o p e r at i o n s   e x c lu d in g 
ac q ui s i t i o n   r e l a t e d   i t e m s    im p a ir m ent   o f   g o o d w ill   a n d   s e p ar at e l y  
d i s c l o s e d   i t e m s   in c lu d e d   w i t hin   b o t h   t h e   o p e r at in g   r e s ul t    n o t e   3     
a n d   n e t   fi n a n c i a l   e x p e n s e s    n o t e   4     n e t   o f   r e l a t e d   t a x at i o n  
i t   s h o ul d   b e   n o t e d   t h at   t h e   d e fi ni t i o n s   o f   un d e r l y in g   i t e m s   b e in g   
u s e d   in   t h e s e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   a r e   t h o s e   u s e d   b y   
t h e   g r o up   a n d   m a y   n o t   b e   c o m p ar a b l e   w i t h   t h e   t e r m   ‘ un d e r l y in g ’    
a s   d e fi n e d   b y   o t h e r   c o m p ani e s   w i t hin   b o t h   t h e   s a m e   s e c t o r   o r 
e l s e w h e r e 
 v  	 s e p a r a te l y 	 d i s c l o s e d 	 i te m s
s e p ar at e l y   d i s c l o s e d   i t e m s   a r e   t h o s e   s i g ni fi c a n t   i t e m s   w hi c h   in 
m a n a g e m e n t ’ s   j u d g e m e n t   a r e   hi g hli g h t e d   b y   v ir t u e   o f   t h e ir   s i z e   o r 
in c i d e n c e   t o   e n a b l e   a   f ull   un d e r s t a n d in g   o f   t h e   g r o up ’ s   fi n a n c i a l  
p e r f o r m an c e      s u c h   i t e m s   a r e   in c lu d e d   w i t hin   t h e   in c o m e   s t at e m e n t  
c apt i o n   t o   w hi c h   t h e y   r e l a t e    n o t e s   3   a n d   4  
 v i  	 ac q u i s i t i o n 	 r e l a te d 	 e x p e n s e s
a c q ui s i t i o n   r e l a t e d   e x p e n s e s   c o m p r i s e   a m o r t i s a t i o n   o f   b u s in e s s  
c o m bin at i o n   in t a n g ib l e s    o t h e r   ac q ui s i t i o n   r e l a t e d   e x p e n s e s   a n d 
r e mun e r a t i o n   f o r   p o s t  c o m bin a t i o n   s e r v i c e s     
t hi s   f o ll o w s   t h e   g r o up ’ s   ad o pt i o n   o f   if r s   3    r e v i s e d    f o r   b u s in e s s 
c o m bin at i o n s   c o m p l e t e d   af t e r   1   o c t o b e r   2 0 0 9      t h e   r e v i s e d   s t a n d ar d 
h a s   r e s ul t e d   in   a   n um b e r   o f   c h an g e s   f o r   b u s in e s s   c o m bin at i o n s   m ad e 
af t e r   t hi s   d a t e    n o t a b l y   t h at   d ir e c t l y   at t r ib u t a b l e   ac q ui s i t i o n   c o s t s   a r e  
t o   b e   e x p e n s e d   r at h e r   t h a n   in c lu d e d   a s   p ar t   o f   t h e   p urc h a s e   p r i c e    
a n d   t h at   c o n t in g e n t   c o n s i d er at i o n   i s   ac c oun t e d   f o r   at   f a ir   v a lu e   at    
t h e   ac q ui s i t i o n   d a t e   w i t h   s ub s e q u e n t   c h an g e s   t o   t h e   f a ir   v a lu e   b e in g 
r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t      t h e   r e v i s e d  
s t a n d ar d   d o e s   n o t   a p p l y   t o   b u s in e s s   c o m bin at i o n s   b e f o r e   1   o c t o b er  
2 0 0 9   a n d   t h e r e   i s   n o   r e t r o s p e c t i v e   a p p li c at i o n   f o r   b u s in e s s  
c o m bin at i o n s   b e f o r e   t h at   d a t e 
t h e   un a u d i t e d   p r o   f o r m a   in f o r m a t i o n   i s   p r e s e n t e d   a l o n g s i d e   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t      t hi s   i s   t o   p r o v i d e   in f o r m a t i o n   w hi c h  
t h e   d ir e c t o r s   c o n s i d er   h e lp s   t o   p r o v i d e   a   b e t t e r   un d e r s t an d in g   o f   t h e  
un d e r l y in g   p e r f o r m an c e   o f   t h e   b u s in e s s      t h e   d i f f e r e n c e s   b e t w e e n 
t h e   un a u d i t e d   p r o   f o r m a   in c o m e   s t at e m e n t   in f o r m a t i o n   a n d   t h e 
c o n s o li d at e d   s t at u t o r y   in c o m e   s t at e m e n t   f o r   t h e   y ea r   a r e   s um m ar i s e d 
a s   f o ll o w s     
•   t h e   p r o   f o r m a   in c o m e   s t at e m e n t   e x c lu d e s   t h e   e s t im at e d 
in c r e m e n t al   d ir e c t   c o s t s   in c ur r e d   b y   t h e   g r o up   in   r e s p e c t   o f  
w e l f a r e   c o s t s   t o   ac c o m m o d at e   an d   r e p a t r i at e   t h e   c u s t o m e r s   w h o 
w e r e   af f e c t e d   b y   t h e   c l o s ur e   o f   e ur o p ean   a ir s p ac e      t h e s e   c o s t s  
p r in c ip all y   in c lu d e   h o t e l   c o s t s   f o r   s t r a n d e d   inb oun d   a n d   o u t b o un d  
c u s t o m e r s   a n d   t h e   c o s t   o f   r e p a t r i at i o n   o f   inb o un d   c u s t o m e r s     
t h e s e   c o s t s   a m oun t   t o   £ 6 9 m 
•   t h e   p r o   f o r m a   in c o m e   s t at e m e n t   in c lu d e s   t h e   e s t im at e d   r e v e n u e 
 £ 9 3 m    a n d   e s t im at e d   at t r ib u t a b l e   c o s t   o f   s a l e s   a n d   admini s t r a t i v e  
e x p e n s e s    £ 6 8 m    f r o m   h o li d a y s   an d   fl i g h t s   w hi c h   w e r e   b o t h 
b o o k e d   a n d   p a i d   f o r   p r i o r   t o   t h e   c l o s ur e   o f   t h e   a ir s p ac e   b u t   w hi c h 
w e r e   c an c e ll e d   o r   un a b l e   t o   d e p ar t   d ur in g   t h e   af f e c t e d   p e r i o d   
 a   f o r e g o n e   g r o s s   p r o fi t   c o n t r ib u t i o n   o f   £ 2 5 m     
•   t h e   p r o   f o r m a   in c o m e   s t at e m e n t   a l s o   in c lu d e s   an   e s t im at e d 
r e d u c t i o n   in   h o li d a y   a n d   fl i g h t   s a l e s   o f   £ 3 2 m   a n d   c o s t   o f   s a l e s    
o f   £ 2 2 m   in   t h e   im m e d i at e   p e r i o d   a f t e r   2 3   a p r il   2 0 1 0    a s   a   r e s ul t    
o f   t h e   un c e r t a in t y   f r o m   b o t h   t h e   o r i g in al   c l o s ur e   o f   a ir s p ac e   a n d 
f ur t h e r   ad d i t i o n al   c l o s ur e s   an d   d i s r upt i o n   in   m a y    p ar t i c ul a r l y    
in   t h e   u k      t hi s   im p ac t    in   t e r m s   o f   f o r e g o n e   g r o s s   p r o fi t  
c o n t r ib u t i o n    i s   e s t im at e d   at   £ 1 0 m 
•   c e r t a in   c u s t o m e r s   w h o s e   h o li d a y s   a n d  o r   fl i g h t s   w e r e   c an c e ll e d  
w ill   h a v e   s ub s e q u e n t l y   r e  b o o k e d   t h e ir   h o li d a y   o n c e   f ull   h o li d a y 
a n d   fl y in g   o p e r at i o n s   c o m m e n c e d   a g a in   af t e r   2 3   a p r il   2 0 1 0       
i t   i s   n o t   p o s s ib l e   t o   r e li a b l y   t r ac k   s u c h   r e  b o o k in g s      i t   i s   a l s o    
n o t   p o s s ib l e   t o   d e m o n s t r at e   t h at   t h e   r e  b o o k e d   h o li d a y   c ap ac i t y  
w o ul d   n o t   o t h e r w i s e   h a v e   b e e n   s o l d   an d   m ad e   a   p o s i t i v e  
c o n t r ib u t i o n    g i v e n   t h e   a bili t y   o f   t h e   g r o up   t o   s e ll   a n d   d i s t r ib u t e 
h o li d a y s   up   un t il   t h e   d a t e   o f   d e p a r t ur e      c o n s e q u e n t l y   n o 
ad j u s t m e n t   h a s   b e e n   t o   r e fl e c t   a n   e s t im at e   o f   s u c h   p o s s ib l e    
r e  b o o k in g s   in   t h e   p r o   f o r m a   in f o r m a t i o n 
•     t h e   p r o   f o r m a   in c o m e   s t at e m e n t   d o e s   n o t   in c lu d e   t h e   e s t im at e d  
b e n e fi t   o f   l o s t   r e v e n u e   a n d   p o s i t i v e   c o n t r ib u t i o n   w hi c h   w o ul d   h a v e  
a r i s e n   f r o m   s a l e   o f   f ur t h e r   h o li d a y s   d ur in g   t h e   a ir s p ac e   c l o s ur e  
p e r i o d   f r o m   1 5  2 3   a p r il   2 0 1 0   in   t h e   ‘ l at e s ’   m a r k e t   w hi c h   w o ul d  
o t h e r w i s e   h a v e   d e p a r t e d   d ur in g   t hi s   p e r i o d 
a   d e t a il e d   an al y s i s   o f   t h e   im p ac t   o n   t h e   p r o   f o r m a   in c o m e   s t at e m e n t 
d u e   t o   t h e   v o l c ani c   a s h   d i s r upt i o n   i s   s h o w n   in   t h e   t a b l e   b e l o w   
    e s t i m a t e d  
  c a n c e l l a t i o n s   i m p a c t  p o s t  i n c r e m e n t a l  
  1 5  2 3 a p r i l   2 3 a p r i l   c o s t s  t o t a l  
  £ m    £ m    £ m    £ m 
r e v e n u e  93  32   –    125
c o s t  o f  s a l e s   68    22     69  21 
g r o s s p r o fi t   25  10   69  104
s e p a r a t e l y d i s c l o s e d   
i t e m s  s d i   –  –   69  69
n o n  s d i  25  10   –  35
  25   10   69   104
•   t h e   c l o s ur e   o f   u k   a n d   e ur o p ean   a ir s p ac e   h ad   n o   e f f e c t   o n   t h e 
c o m p ar at i v e   y ea r   t o   3 0   s e pt e m b e r   2 0 0 9   a n d   t h e r e f o r e   n o   p r o  
f o r m a   in c o m e   s t at e m e n t   i s   p r e s e n t e d   f o r   t hi s   p e r i o d 
financial statements
notes to the consolidated financial statements c o n t i n u e d wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  73
 i  	 s u b s i d i a r i e s
s ub s i d i a r i e s   a r e   e n t i t i e s   c o n t r o ll e d   b y   t h e   g r o up      c o n t r o l   e x i s t s   
w h e n   t h e   g r o up   h a s   t h e   p o w e r    d ir e c t l y   o r   in d ir e c t l y    t o   g o v e r n   t h e 
fi n a n c i a l   a n d   o p e r a t in g   p o li c i e s   o f   a n   e n t i t y   s o   a s   t o   o bt a in   b e n e fi t s  
f r o m   i t s   ac t i v i t i e s      in   a s s e s s in g   c o n t r o l    p o t e n t i a l   v o t in g   r i g h t s   t h at   
a r e   c ur r e n t l y   e x e rc i s ab l e   o r   c o n v e r t ib l e   a r e   t a k e n   in t o   ac c oun t       
t h e   fi n a n c i a l   s t at e m e n t s   o f   s ub s i d i a r i e s   a r e   in c lu d e d   in   t h e 
c o n s o li d at e d   fi n a n c i a l   in f o r m a t i o n   f r o m   t h e   d a t e   t h at   c o n t r o l 
c o m m e n c e s   un t il   t h e   d a t e   t h at   c o n t r o l   c ea s e s 
 i i  	 j o i n t 	 v e n t u r e s 	 a n d 	 a s s o c i a te s
join t   v e n t ur e s   a r e   j oin t l y   c o n t r o ll e d   e n t i t i e s   w h o s e   ac t i v i t i e s   t h e  
g r o up   h a s   t h e   p o w e r   t o   j oin t l y   c o n t r o l    e s t a b li s h e d   b y   c o n t r ac t u a l  
a g r e e m e n t      a s s o c i at e s   a r e   t h o s e   e n t i t i e s   in   w hi c h   t h e   g r o up   h a s   t h e 
a bili t y   t o   e x e rc i s e   s i g ni fi c a n t   in fl u e n c e    b u t   n o t   c o n t r o l    o v e r   t h e 
fi n a n c i a l   a n d   o p e r a t in g   p o li c i e s      t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s  
in c lu d e   t h e   g r o up ’ s   s h a r e   o f   t h e   t o t a l   r e c og ni s e d   in c o m e   a n d   e x p e n s e 
a n d   c h an g e s   in   e q ui t y   o f   j oin t   v e n t ur e s   a n d   a s s o c i at e s   o n   a n   e q ui t y  
ac c o un t e d   b a s i s    f r o m   t h e   d a t e   t h at   j oin t   c o n t r o l   o r   s i g ni fi c a n t  
in fl u e n c e   r e s p e c t i v e l y   c o m m e n c e s   un t il   t h e   d a t e   t h at   i t   c ea s e s     
a s s o c i at e s   a n d   j oin t   v e n t ur e s   a r e   r e c o r d e d   at   c o s t   a s   ad j u s t e d   f o r  
p o s t  ac q ui s i t i o n   c h an g e s   in   t h e   g r o up ’ s   s h a r e   o f   n e t   a s s e t s   o f   t h e  
e n t i t y   in c lu d in g   g o o d w ill   n e t   o f   ac c umul a t e d   im p a ir m e n t   l o s s      w h e n 
t h e   g r o up ’ s   s h a r e   o f   l o s s e s   e x c e e d s   t h e   c ar r y in g   a m o un t   o f   t h e   j oin t  
v e n t ur e   o r   a s s o c i at e    t h e   c ar r y in g   a m o un t   i s   r e d u c e d   t o   £ nil   a n d 
r e c og ni t i o n   o f   f ur t h e r   l o s s e s   i s   d i s c o n t in u e d   e x c e pt   t o   t h e   e x t e n t   t h at 
t h e   g r o up   h a s   in c ur r e d   l e g al   o r   c o n s t r u c t i v e   o b li g at i o n s   o r   m ad e 
p a y m e n t s   o n   b e h al f   o f   t h e   j oint   v e n t ur e   o r   a s s o c i at e 
 i i i  	 t r a n s a c t i o n s 	 e l i m i n a te d 	 o n 	 c o n s o l i d a t i o n
in t r a  g r o up   b al a n c e s   a n d   a n y   unr ea li s e d   g a in s   o r   in c o m e   a n d 
e x p e n s e s   a r i s in g   f r o m   in t r a  g r o up   t r a n s ac t i o n s    a r e   e limin at e d   in  
p r e p a r in g   t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s      unr ea li s e d   g a in s 
a r i s in g   f r o m   t r a n s ac t i o n s   w i t h   a s s o c i at e s   a n d   j oin t l y   c o n t r o ll e d   e n t i t i e s  
a r e   e limin at e d   t o   t h e   e x t e n t   o f   t h e   g r o up ’ s   in t e r e s t   in   t h e   e n t i t y    
unr ea li s e d   l o s s e s   a r e   e limin at e d   in   t h e   s a m e   w a y   a s   unr ea li s e d   g a in s   
b u t   o nl y   t o   t h e   e x t e n t   t h at   t h e r e   i s   n o   e v i d e n c e   o f   im p a ir m e n t 
 i v  	 ac q u i s i t i o n 	 i n 	 s t a g e s
w h e r e   a   g r o up   g a in s   c o n t r o l   o f   a   s ub s i d i a r y   un d e r t a k in g   t hr o u g h   a  
s t e p   ac q ui s i t i o n    t h e   e x i s t in g   in t e r e s t   o w n e d   i s   r e m ea s ur e d   at   f a ir  
v a lu e   w i t h   t h e   d i f f e r e n c e   b e t w e e n   f a ir   v a lu e   a n d   b o o k   v a lu e   b e in g  
r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t      t h e   ac c o un t in g   im p ac t   o f  
c h an g e s   in   s h a r e   o w n e r s hip   w hi c h   d o   n o t   a f f e c t   c o n t r o l   i s   ac c ount e d  
f o r   t hr o u g h   r e s e r v e s 
 v  	 c o n t i n g e n t 	 a c q u i s i t i o n 	 c o n s i d e r a t io n 	  f o r 	 b u s i n e s s	
c o m b i n a t io n s 	 f r o m 	 1 	 o c t o b e r 	 2 0 0 9 
c o n t in g e n t   c o n s i d er at i o n   i s   ac c o un t e d   f o r   at   f a ir   v a lu e   at   t h e 
ac q ui s i t i o n   d a t e   w i t h   s ub s e q u en t   c h an g e s   in   t h e   f a ir   v a lu e   b e in g  
r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t      c o n t in g e n t   c o n s i d er a t i o n  
d e p e n d e n t   up o n   c o n t in uin g   s e r v i c e   o f   a n   e m p l o y e e   i s   c h ar g e d   t o   t h e  
in c o m e   s t at e m e n t   o v e r   t h e   r e l a t e d   s e r v i c e   p e r i o d 
c o n t i n g e n t 	 a c q u i s i t i o n 	 c o n s i d e r a t io n 	  f o r 	 b u s i n e s s 	 c o m b i n a t io n s 	
u p 	 u n t i l 	 3 0 	 s e p te m b e r 	 2 0 0 9 
c o n t in g e n t   c o n s i d er at i o n   i s   r e c og ni s e d   w h e n   t h e   p a y m e n t   a m oun t  
b e c o m e s   p r o b ab l e   an d   t h e   a m oun t s   c an   b e   r e li a b l y   m ea s ur e d     
t h e   p urc h a s e   p r i c e   i s   s ub s e q u e n t l y   ad j u s t e d   a g a in s t   g o o d w ill   o r 
n e g at i v e   g o o d w ill   a s   t h e   e s t im at e   o f   t h e   a m o un t   p a y ab l e   i s   r e v i s e d 
 v i i  	 b u s i n e s s 	 a n d 	 p e r f o r m a nc e 	 r e v i e w
t h e   g r o up ’ s   b u s in e s s   ac t i v i t i e s    t og e t h e r   w i t h   f ac t o r s   lik e l y   t o   af f e c t  
i t s   f u t ur e   d e v e l o p m e n t    p e r f o r m an c e   a n d   p o s i t i o n   a r e   s e t   o u t   in   t h e 
b u s in e s s   p e r f o r m an c e   s e c t i o n      in   ad d i t i o n    n o t e   2 5   s e t s   o u t   t h e 
g r o up ’ s   o bj e c t i v e s    p o li c i e s   a n d   p r o c e s s e s   f o r   m a n a g in g   i t s   c api t a l   
fi n a n c i a l   r i s k s    fi n a n c i a l   in s t r um e n t s   a n d   h e d g in g   ac t i v i t i e s   a s   w e ll   a s 
i t s   e x p o s ur e s   t o   c r e d i t   an d   li q ui d i t y   r i s k 
 v i i i  	 f u n d i n g 	 a n d 	 l i q u i d i t y
t h e   b o ar d   r e m a in s   s at i s fi e d   w i t h   t h e   g r o up ’ s   f un d in g   a n d   li q ui d i t y  
p o s i t i o n      t h e   m a in   s o urc e s   o f   d e b t   f un d in g   a r e 
1    t h e   s h a r e h o l d e r   l o an   f r o m   t u i   a g    w hi c h   i s   € 6 6 9 m   a n d   i s   b e in g 
r e p a i d   a s   f o ll o w s    1   d e c e m b e r   2 0 1 0    € 5 0 9 m   a n d   3 0   a p r il   2 0 1 1   
€ 1 6 0 m 
2    a   t o t al   o f   £ 1  0 6 0 m   s y n d i c a t e d   b ank   r e v o l v in g   c r e d i t   f ac ili t i e s   w hi c h 
m a t ur e   in   j un e   2 0 1 2 
3    £ 4 0 m   o f   b o n d in g   an d   l e t t e r   o f   c r e d i t   f ac ili t i e s   w hi c h   m a t ur e   in  
s e pt e m b e r   2 0 1 1   a n d   a   f ur t h e r   £ 5 0 m   w hi c h   m a t ur e   in   j un e   2 0 1 2 
4    a   £ 3 5 0 m   c o n v e r t ib l e   b o n d    d u e   2 0 1 4    i s s u e d   o n   1   o c t o b e r   2 0 0 9  
a n d   s e t t l e d   o n   5   o c t o b e r   2 0 0 9    a n d
5    a   £ 4 0 0 m   c o n v e r t ib l e   b o n d    d u e   2 0 1 7    i s s u e d   o n   2 2   a p r il   2 0 1 0    
a n d   s e t t l e d   o n   2 7   a p r il   2 0 1 0 
in   ad d i t i o n   t o   t h e   a b o v e   f ac ili t i e s   a   f ur t h e r   £ 3 0 m   b o n d in g   a n d   
l e t t e r   o f   c r e d i t   f ac ili t y   w hi c h   m a t ur e s   in   j un e   2 0 1 2   w a s   s i g n e d   
o n   1 5   o c t o b e r   2 0 1 0     
t h e   r at i o   o f   e ar nin g s   b e f o r e   in t e r e s t    t a x a t i o n    d e p r e c i at i o n  
a m o r t i s at i o n   a n d   o p e r at in g   l ea s e   r e n t al s    e bi t d a r    t o   fi x e d   
c h ar g e s    b e in g   t h e   a g g r e g a t e   a m oun t   o f   in t e r e s t   a n d   a n y   o t h e r  
fi n a n c e   c h ar g e s   in   r e s p e c t   o f   b o r r o w in g s   an d   in c lu d in g   a ll   p a y m e n t s  
un d e r   o p e r at in g   l ea s e s    a n d   t h e   r at i o   o f   n e t   d e b t   t o   e ar nin g s   b e f o r e  
int e r e s t    t a x a t i o n    d e p r e c i at i o n   a n d   a m o r t i s at i o n    e bi t d a     w hi c h   
t h e   b o ar d   b e li e v e s   t o   b e   t h e   m o s t   u s e f ul   m ea s ur e s   o f   c a s h   g e n e r at i o n  
an d   g ea r in g    a s   w e ll   a s   b e in g   t h e   m a in   b a s i s   f o r   t h e   g r o up ’ s   c r e d i t  
f ac ili t y   c o v e n a n t s    a r e   c ur r e n t l y   w e ll   w i t hin   t h e   c o v e n a n t   limi t s     
f o r e c a s t s   r e v i e w e d   b y   t h e   b o ar d    in c lu d in g   f o r e c a s t s   ad j u s t e d   f o r  
s i g ni fi c a n t l y   w o r s e   e c o n o mi c   c o n d i t i o n s    s h o w   c o n t in u e d   c o m p li a n c e  
w i t h   t h e s e   c o v e n a n t s      f o r   b o t h   c o v e n a n t s    ea r nin g s   a r e   c al c ul a t e d   o n 
an   un d e r l y in g   b a s i s   a s   d e s c r ib e d   in   n o t e   1  b   i v  
o n   t h e   b a s i s   o f   i t s   f o r e c a s t s    b o t h   b a s e   c a s e   an d   ad j u s t e d   a s  
d e s c r ib e d   a b o v e    a n d   a v a il ab l e   f ac ili t i e s    t h e   b o ar d   h a s   c o n c lu d e d   t h at 
t h e   g oin g   c o n c e r n   b a s i s   o f   p r e p a r at i o n   c o n t in u e s   t o   b e   a p p r o p r i a t e     
in   p ar t i c ul ar   t h e   b o ar d   b e li e v e   t h at   t h e   f un d in g   a lr ead y   in   p l ac e   i s 
s u f fi c i e n t   t o   r e p a y   t h e   s h a r e h o l d e r   l o an   w hi c h   w ill   b e c o m e   p a y ab l e   
a s   d e s c r ib e d   a b o v e 
c basis of consolidation
t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   a r e   p r e p ar e d   o n   t h e   hi s t o r i c al  
c o s t   b a s i s   o t h e r   t h a n   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t s    fi n a n c i a l  
in s t r um e n t s   h e l d   f o r   t r ad in g    fi n a n c i a l   in s t r um e n t s   c l a s s i fi e d    
a s   a v a il ab l e   f o r   s a l e   a n d   li a bili t i e s   f o r   c a s h  s e t t l e d   s h a r e  b a s e d  
p a y m e n t s    w hi c h   a r e   s t at e d   at   t h e ir   f a ir   v a lu e      n o n  c ur r e n t   a s s e t s  
an d   d i s p o s a l   g r o up s   h e l d   f o r   s a l e   ar e   s t at e d   at   t h e   l o w e r   o f   t h e ir 
c ar r y in g   a m o un t   a n d   f a ir   v a lu e   l e s s   c o s t s   t o   s e ll 
t h e   g r o up   fi n a n c i a l   s t at e m e n t s   c o n s o li d at e   t h o s e   o f   t h e   c o m p a n y  
an d   i t s   s ub s i d i a r i e s    t og e t h e r   r e f e r r e d   t o   a s   t h e   g r o up    a n d   e q ui t y  
ac c o un t   t h e   g r o up ’ s   in t e r e s t   in   j oin t   v e n t ur e s   an d   a s s o c i at e s      
t h e   p ar e n t   c o m p an y   fi n a n c i a l   s t at e m e n t s   p r e s e n t   in f o r m a t i o n   
ab o u t   t h e   c o m p a n y   a s   a   s e p ar at e   e n t i t y   a n d   n o t   ab o u t   t h e   g r o up  wwwtuitravelplccom
74  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
f o r e i g n   e x c h an g e   g a in s   a n d   l o s s e s   a r i s in g   f r o m   a   m o n e t a r y   i t e m  
r e c e i v ab l e   f r o m   o r   p a y ab l e   t o   a   f o r e i g n   o p e r a t i o n    t h e   s e t t l e m e n t   
o f   w hi c h   i s   n e i t h e r   p l a nn e d   n o r   lik e l y   in   t h e   f o r e s e ea b l e   f u t ur e    a r e  
c o n s i d er e d   t o   f o r m   p ar t   o f   a   n e t   in v e s t m e n t   in   a   f o r e i g n   o p e r at i o n 
a n d   a r e   r e c og ni s e d   d ir e c t l y   in   e q ui t y   in   t h e   t r a n s l a t i o n   r e s e r v e     
 i i i  	 n e t 	 i n v e s t m e n t 	 i n 	 f o r e i g n 	 o p e r a t io n s
t h e   g r o up   a p p li e s   h e d g e   ac c ount in g   t o   f o r e i g n   c ur r e n c y   d i f f e r e n c e s  
a r i s in g   b e t w e e n   t h e   f un c t i o n a l   c ur r e n c y   o f   t h e   f o r e i g n   o p e r at i o n   
a n d   t h e   p ar e n t   e n t i t y ’ s   f un c t i o n a l   c ur r e n c y    s t e r lin g    r e g a r dl e s s    
o f   w h e t h er   t h e   n e t   in v e s t m e n t   i s   h e l d   d ir e c t l y   o r   t hr o u g h   a n 
in t e r m e d i at e   p ar e n t 
f o r e i g n   c ur r e n c y   d i f f e r e n c e s   a r i s in g   o n   t h e   r e t r a n s l a t i o n   o f   a    
fi n a n c i a l   li a bili t y   d e s i g n at e d   a s   a   h e d g e   o f   a   n e t   in v e s t m e n t   in   a 
f o r e i g n   o p e r at i o n   ar e   r e c og ni s e d   in   t h e   c o n s o li d at e d   s t at e m e n t   o f 
c o m p r e h e n s i v e   in c o m e   t o   t h e   e x t e n t   t h at   t h e   h e d g e   i s   e f f e c t i v e   a n d 
a r e   p r e s e n t e d   w i t hin   e q ui t y   in   t h e   t r a n s l a t i o n   r e s e r v e      t o   t h e   e x t e n t  
t h at   t h e   h e d g e   i s   in e f f e c t i v e    s u c h   d i f f e r e n c e s   a r e   r e c og ni s e d   in   p r o fi t  
o r   l o s s      w h e n   t h e   h e d g e d   p ar t   o f   a   n e t   in v e s t m e n t   i s   d i s p o s e d   o f   t h e 
r e l e v an t   a m oun t   in   t h e   t r a n s l a t i o n   r e s e r v e   i s   t r a n s f e r r e d   t o   p r o fi t   o r 
l o s s   a s   p ar t   o f   t h e   p r o fi t   o r   l o s s   o n   d i s p o s a l 
e financial instruments
 i  	 f i n a nc i a l 	 a s s e t s
f in an c i a l   a s s e t s   a r e   e i t h e r   c l a s s i fi e d   a s   l o an s   a n d   r e c e i v ab l e s    a v a il ab l e  
f o r   s a l e   fi n a n c i a l   a s s e t s    o r   fi n a n c i a l   a s s e t s   at   f a ir   v a lu e   t hr o u g h   p r o fi t  
o r   l o s s      f in an c i a l   a s s e t s   in c lu d e   c a s h   a n d   c a s h   e q ui v a l e n t s    t r ad e 
r e c e i v ab l e s    o t h e r   r e c e i v ab l e s    l o an s    t r ad e   a n d   o t h e r   in v e s t m e n t s   
a n d   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t s      t h e   g r o up   d e t e r min e s   t h e 
c l a s s i fi c at i o n   o f   i t s   fi n a n c i a l   a s s e t s   at   ini t i a l   r e c og ni t i o n    f in an c i a l  
a s s e t s   a r e   r e c og ni s e d   ini t i a ll y   at   f a ir   v a lu e    n o r m a ll y   b e in g   t h e 
t r a n s ac t i o n   p r i c e   p lu s    in   t h e   c a s e   o f   fi n a n c i a l   a s s e t s   n o t   at   f a ir   
v a lu e   t hr o u g h   p r o fi t   o r   l o s s    d ir e c t l y   at t r ib u t a b l e   t r a n s ac t i o n   c o s t s    
t h e   s ub s e q u e n t   m ea s ur em e n t   o f   fi n a n c i a l   a s s e t s   d e p e n d s   o n   t h e ir 
c l a s s i fi c at i o n    a s   f o ll o w s 
loans and receivables
l o a n s   a n d   r e c e i v ab l e s   a r e   n o n  d e r i v a t i v e   fi n a n c i a l   a s s e t s   w i t h    
fi x e d   o r   d e t e r min ab l e   p a y m e n t s   t h at   a r e   n o t   q u o t e d   in   an   ac t i v e 
m a r k e t      s u c h   a s s e t s   a r e   c ar r i e d   at   am o r t i s e d   c o s t   u s in g   t h e   
e f f e c t i v e   in t e r e s t   m e t h o d   i f   t h e   t im e   v a lu e   o f   m o n e y   i s   s i g ni fi c a n t     
g a in s   a n d   l o s s e s   a r e   r e c og ni s e d   in   in c o m e   w h e n   t h e   l o an s   an d  
r e c e i v ab l e s   a r e   d e r e c og ni s e d   o r   im p a ir e d    a s   w e ll   a s   t hr o u g h   t h e 
a m o r t i s a t i o n   p r o c e s s      t hi s   c a t e g o r y   o f   fi n a n c i a l   a s s e t s   in c lu d e s    
t r ad e   a n d   o t h e r   r e c e i v ab l e s 
available for sale financial assets
a v a il a b l e   f o r   s a l e   fi n a n c i a l   a s s e t s   a r e   t h o s e   n o n  d e r i v a t i v e   fi n a n c i a l  
a s s e t s   t h at   ar e   n o t   c l a s s i fi e d   a s   l o an s   a n d   r e c e i v ab l e s   o r   fi n a n c i a l  
a s s e t s   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r   l o s s      a f t e r   ini t i a l   r e c og ni t i o n   
a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t s   a r e   m ea s ur e d   a t   f a ir   v a lu e    w i t h   g a in s  
o r   l o s s e s   r e c og ni s e d   a s   a   s e p ar at e   c o m p o n e n t   o f   e q ui t y   un t il   t h e 
in v e s t m e n t   i s   d e r e c og ni s e d   o r   un t il   t h e   in v e s t m e n t   i s   d e t e r min e d   t o 
b e   im p a ir e d    at   w hi c h   t im e   t h e   c umul at i v e   g a in   o r   l o s s   p r e v i o u s l y 
r e p o r t e d   in   e q ui t y   i s   in c lu d e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t     
n o t e   1  y   i v    d e s c r ib e s   t h e   b a s i s   o n   w hi c h   f a ir   v a lu e   i s   d e t e r min e d 
financial assets at fair value through profit or loss
f in an c i a l   a s s e t s   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r   l o s s   a r e   m ea s ur e d   at  
f a ir   v a lu e   af t e r   ini t i a l   r e c og ni t i o n      t h e   g a in   o r   l o s s   i s   in c lu d e d   in   t h e  
c o n s o li d at e d   in c o m e   s t at e m e n t      n o t e   1  y   i v    d e s c r ib e s   t h e   b a s i s   
o n   w hi c h   f a ir   v a lu e   i s   d e t e r min e d 
t h e   t e r m   c o n t in g e n t   c o n s i d er at i o n   h a s   b e e n   u s e d   t hr o u g h ou t   t h e s e 
fi n a n c i a l   s t at e m e n t s   t o   d e s c r ib e   t h e   p ar t   o f   t h e   o v e r a ll   c o n s i d e r at i o n  
p a i d   t o   t h e   f o r m e r   s h a r e h o l d e r s   o f   b u s in e s s e s   ac q uir e d   o n   o r   af t e r   
1   o c t o b e r   2 0 0 9   t h at   i s   c o n t in g e n t   up o n   t h e   f u t ur e   r e s ul t s   o f   t h o s e 
ac q uir e d   b u s in e s s e s    in c lu d in g   w h e r e   t h e   p a y m e n t   i s   c o n t in g e n t   o n 
t h o s e   f o r m e r   s h a r e h o l d e r s   un d e r t a k in g   e m p l o y m e n t   w i t h   t h e   g r o up 
f o r   a   p r e d e t e r min e d   p e r i o d   af t e r   t h e   r e l e v an t   b u s in e s s   c o m bin at i o n   
if r s   3    r e v i s e d    r e q uir e s   t h at   t h e s e   am ount s   a r e   c h ar g e d   t o   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t   a s   a   p o s t  ac q ui s i t i o n   e m p l o y m e n t   c o s t  
o v e r   t h e   t e r m   o f   t h e   r e l e v an t   p o s t  c o m bin a t i o n   e m p l o y m e n t   p e r i o d    
t h e   g r o up   in c lu d e s   t h e   r e l e v an t   in c o m e   s t at e m e n t   c h a r g e   w i t hin 
ac q ui s i t i o n   r e l a t e d   e x p e n s e s    n o t e   1 3       t h e   d ir e c t o r s   b e li e v e   t h e 
c o m m e rc i a l   n at ur e   o f   t h e s e   p a y m e n t s   m ea n s   t h at   t hi s   t e r m   r e m a in s  
t h e   m o s t   a p p r o p r i a t e   t o   d e s c r ib e   t h e s e   p a y m e n t s    n o t w i t h s t a n d in g 
t h e   ac c o un t in g   t r eat m e n t   r e q uir e d   b y   if r s   3    r e v i s e d  
 v i  	 n o n  c u r r e n t 	 a s s e t s 	 h e l d 	 f o r 	 s a l e
t h e   g r o up   c l a s s i fi e s   n o n  c ur r e n t   a s s e t s   a s   h e l d   f o r   s a l e   i f   t h e ir 
c ar r y in g   a m o un t   w ill   b e   r e c o v e r e d   p r in c ip all y   t hr o u g h   a   s a l e 
t r a n s ac t i o n   r at h e r   t h a n   t hr o u g h   c o n t in uin g   u s e      t o   b e   c l a s s i fi e d   a s  
h e l d   f o r   s a l e    t h e   a s s e t s   mu s t   b e   a v a il ab l e   f o r   im m e d i at e   s a l e   in   t h e ir 
p r e s e n t   c o n d i t i o n    s ubj e c t   o nl y   t o   t e r m s   t h at   ar e   u s u al   a n d   c u s t o m a r y  
f o r   t h e   s a l e   o f   s u c h   a s s e t s    an d   t h e ir   s a l e   mu s t   b e   hi g hl y   p r o b ab l e  
s a l e   i s   c o n s i d er e d   t o   b e   hi g hl y   p r o b ab l e   w h e n   m a n a g e m e n t   a r e 
c o m mi t t e d   t o   a   p l a n   t o   s e ll   t h e   a s s e t s   a n d   a n   ac t i v e   p r og r a m m e   t o 
l o c a t e   a   b u y e r   an d   c o m p l e t e   t h e   p l a n   h a s   b e e n   ini t i at e d    a t   a   p r i c e  
t h at   i s   r ea s o n ab l e   in   r e l a t i o n   t o   t h e ir   c ur r e n t   f a ir   v a lu e    a n d   t h e r e   i s   a n 
e x p e c t at i o n   t h at   t h e   s a l e   w ill   b e   c o m p l e t e d   w i t hin   o n e   y ea r   f r o m   t h e 
d a t e   o f   c l a s s i fi c at i o n      n o n  c ur r e n t   a s s e t s   c l a s s i fi e d   a s   h e l d   f o r   s a l e 
a r e   c ar r i e d   o n   t h e   g r o up ’ s   b al a n c e   s h e e t   at   t h e   l o w e r   o f   t h e ir   c ar r y in g 
a m oun t   an d   f a ir   v a lu e   l e s s   c o s t s   t o   s e ll 
d foreign currency
 i  	 f o r e i g n 	 c u r r e nc y 	 t r a n s a c t i o n s
t r a n s ac t i o n s   in   f o r e i g n   c ur r e n c i e s   a r e   t r a n s l a t e d   at   t h e   f o r e i g n 
e x c h an g e   r at e   r ulin g   a t   t h e   d a t e   o f   t h e   t r a n s ac t i o n      m o n e t ar y   a s s e t s  
a n d   li a bili t i e s   d e n o min at e d   in   f o r e i g n   c ur r e n c i e s   a t   t h e   b al a n c e   s h e e t  
d a t e   a r e   t r a n s l a t e d   t o   s t e r lin g   at   t h e   f o r e i g n   e x c h a n g e   r at e   r ulin g   at 
t h at   d a t e      f o r e i g n   e x c h an g e   d i f f e r e n c e s   a r i s in g   o n   t r a n s l a t i o n   a r e  
r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t    e x c e pt   f o r   d i f f e r e n c e s   a r i s in g   o n 
t h e   r e t r a n s l a t i o n   o f   a   fi n a n c i a l   li a bili t y   d e s i g n at e d   a s   a   h e d g e   o f   t h e 
n e t   in v e s t m e n t   in   a   f o r e i g n   o p e r at i o n    o r   q u ali f y in g   c a s h   fl o w   h e d g e s   
w hi c h   a r e   r e c og ni s e d   d ir e c t l y   in   e q ui t y       n o n  m o n e t ar y   a s s e t s   an d  
li a bili t i e s   t h at   a r e   m ea s ur e d   in   t e r m s   o f   hi s t o r i c al   c o s t   in   a   f o r e i g n 
c ur r e n c y   a r e   t r a n s l a t e d   u s in g   t h e   e x c h a n g e   r at e   at   t h e   d a t e   o f   t h e 
t r a n s ac t i o n      n o n  m o n e t ar y   a s s e t s   an d   li a bili t i e s   d e n o min at e d   in  
f o r e i g n   c ur r e n c i e s   t h at   a r e   s t at e d   at   f a ir   v a lu e   a r e   t r a n s l a t e d   t o 
s t e r lin g   a t   f o r e i g n   e x c h a n g e   r at e s   r ulin g   at   t h e   d a t e s   t h e   f a ir   v a lu e s 
w e r e   d e t e r min e d 
 i i  	 f o r e i g n 	 o p e r a t io n s
t h e   a s s e t s   a n d   li a bili t i e s   o f   f o r e i g n   o p e r at i o n s    in c lu d in g   g o o d w ill   
a n d   f a ir   v a lu e   ad j u s t m e n t s   a r i s in g   o n   c o n s o li d at i o n    a r e   t r a n s l a t e d   t o 
s t e r lin g   a t   t h e   f o r e i g n   e x c h a n g e   r at e s   r ulin g   a t   t h e   b al a n c e   s h e e t   d a t e 
t h e   r e v e n u e s   a n d   e x p e n s e s   o f   o v e r s ea s   o p e r at i o n s   a r e   t r a n s l a t e d   
at   r at e s   a p p r o x im at in g   t o   t h e   f o r e i g n   e x c h an g e   r at e s   r ulin g   at   t h e 
d a t e s   o f   t h e   t r a n s ac t i o n s      f o r e i g n   e x c h a n g e   d i f f e r e n c e s   a r i s in g   o n 
r e t r a n s l a t i o n   h a v e   b e e n   r e c og ni s e d   d ir e c t l y   in   e q ui t y   in   t h e   t r a n s l a t i o n  
r e s e r v e    a   d e s i g n a t e d   f o r e i g n   e x c h a n g e   r e s e r v e    s in c e   1   jan u a r y   2 0 0 7   
financial statements
notes to the consolidated financial statements c o n t i n u e d wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  75
i s s u e   c o s t s   a r e   a p p o r t i o n e d   b e t w e e n   t h e   li a bili t y   a n d   e q ui t y  
c o m p o n e n t s   o f   a   c o n v e r t ib l e   b o n d   b a s e d   o n   t h e   a ll o c at i o n   o f 
p r o c e e d s   t o   t h e   li a bili t y   a n d   e q ui t y   c o m p o n e n t s   w h e n   t h e    
in s t r um e n t s   a r e   fi r s t   r e c og ni s e d 
derivatives
d e r i v at i v e s   a r e   ac c oun t e d   f o r   in   ac c o r d a n c e   w i t h   t h e   p o li c y   in    
n o t e   1  e   i ii  
derecognition
t h e   g r o up   d e r e c og ni s e s   a   fi n a n c i a l   li a bili t y   w h e n   t h e   c o n t r ac t u a l  
o b li g at i o n s   t o   p a y   t h e   c o n t r ac t u a l   c a s h   fl o w s   o n   t h e   fi n a n c i a l   li a bili t y  
a r e   d i s c h a r g e d    c an c e ll e d   o r   e x pir e   
 i i i  	 d e r i v a t i v e 	 fi n a nc i a l 	 i n s t r u m e n t s
t h e   g r o up   u s e s   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t s   t o   h e d g e   i t s   
e x p o s ur e   t o   f o r e i g n   e x c h an g e    in t e r e s t   r at e   a n d   f u e l   p r i c e   r i s k s   
a r i s in g   f r o m   o p e r at i o n al    fi n a n c in g   a n d   in v e s t m e n t   ac t i v i t i e s      
in   ac c o r d a n c e   w i t h   i t s   t r ea s ur y   p o li c y    t h e   g r o up   d o e s   n o t   h o l d   
o r   i s s u e   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t s   f o r   t r ad in g   p ur p o s e s    
h o w e v e r    d e r i v a t i v e s   t h at   d o   n o t   q u ali f y   f o r   h e d g e   ac c oun t in g   a r e  
ac c o un t e d   f o r   a s   t r ad in g   in s t r um e n t s 
d e r i v at i v e   fi n a n c i a l   in s t r um e n t s   a r e   ini t i a ll y   r e c og ni s e d   at   f a ir   v a lu e    
o n   t h e   d a t e   a   d e r i v a t i v e   c o n t r ac t   i s   e n t e r e d   in t o   a n d   a r e   s ub s e q u e n t l y  
r e m ea s ur e d   at   f a ir   v a lu e      t h e   m e t h o d   o f   r e c og ni s in g   t h e   r e s ul t in g 
g a in   o r   l o s s   d e p e n d s   o n   w h e t h e r   t h e   d e r i v a t i v e   i s   d e s i g n at e d   a s   a 
h e d g in g   in s t r um e n t   an d   i f   s o   t h e   n at ur e   o f   t h e   i t e m   b e in g   h e d g e d     
t h e   g a in   o r   l o s s   o n   r e m ea s ur e m e n t   t o   f a ir   v a lu e   o n   d e r i v a t i v e s   n o t  
d e s i g n at e d   a s   a   h e d g in g   in s t r um e n t   i s   r e c og ni s e d   im m e d i at e l y   in   t h e 
in c o m e   s t at e m e n t      w h e r e   d e r i v a t i v e s   q u ali f y   f o r   h e d g e   ac c oun t in g   
s e e   a c c o un t in g   p o li c y   n o t e   1  f  
 i v  	 s h a r e 	 c a p i t a l
o r d in ar y   s h a r e s   a r e   c l a s s i fi e d   a s   e q ui t y      in c r e m e n t al   c o s t s   d ir e c t l y  
at t r ib u t a b l e   t o   t h e   i s s u e   o f   o r d in ar y   s h a r e s   a n d   s h a r e   a w a r d s   a r e  
r e c og ni s e d   a s   a   d e d u c t i o n   f r o m   e q ui t y    n e t   o f   a n y   t a x   e f f e c t s 
f hedge accounting
t h e   g r o up   d e s i g n at e s   c e r t a in   d e r i v a t i v e s   a s   e i t h e r   h e d g e s   o f   a  
p ar t i c ul a r   r i s k   a s s o c i at e d   w i t h   a   r e c og ni s e d   a s s e t   o r   li a bili t y   o r   a   hi g hl y 
p r o b ab l e   f o r e c a s t   t r a n s ac t i o n    c a s h   fl o w   h e d g e    o r   a   h e d g e   o f   t h e   f a ir 
v a lu e   o f   r e c og ni s e d   a s s e t s   o r   li a bili t i e s   o r   a   fi r m   c o m mi t m e n t    f a ir  
v a lu e   h e d g e  
o n   ini t i a l   d e s i g n at i o n   o f   t h e   h e d g e    t h e   g r o up   f o r m a ll y   d o c um e n t s   t h e 
r e l a t i o n s hip   b e t w e e n   t h e   h e d g in g   in s t r um e n t  s    a n d   h e d g e d   i t e m  s    
in c lu d in g   t h e   r i s k   m a n a g e m e n t   o bj e c t i v e s   a n d   s t r at e g y   in   un d e r t a k in g  
t h e   h e d g e   t r a n s ac t i o n    t og e t h e r   w i t h   t h e   m e t h o d s   t h at   w ill   b e   u s e d   t o  
a s s e s s   t h e   e f f e c t i v e n e s s   o f   t h e   h e d g in g   r e l a t i o n s hip      t h e   g r o up 
m a k e s   a n   a s s e s s m e n t    b o t h   at   t h e   in c e p t i o n   o f   t h e   h e d g e   r e l a t i o n s hip  
a s   w e ll   a s   o n   a n   o n g oin g   b a s i s    w h e t h e r   t h e   h e d g in g   in s t r um e n t s   ar e 
e x p e c t e d   t o   b e   ’ hi g hl y   e f f e c t i v e ’   in   o f f s e t t in g   t h e   c h a n g e s   in   t h e   f a ir  
v a lu e   o r   c a s h   fl o w s   o f   t h e   r e s p e c t i v e   h e d g e d   i t e m s   d ur in g   t h e   p e r i o d  
f o r   w hi c h   t h e   h e d g e   i s   d e s i g n a t e d   a n d   w h e t h e r   t h e   ac t u al   r e s ul t s   o f 
eac h   h e d g e   a r e   w i t hin   a   r a n g e   o f   8 0  1 2 5       f o r   a   c a s h   fl o w   h e d g e   o f   
a   f o r e c a s t   t r a n s ac t i o n    t h e   t r a n s ac t i o n   s h o ul d   b e   hi g hl y   p r o b ab l e   t o 
o c c ur   a n d   s h o ul d   p r e s e n t   a n   e x p o s ur e   t o   v a r i at i o n s   in   c a s h   fl o w s   t h at  
c o ul d   ul t im a t e l y   af f e c t   r e p o r t e d   n e t   in c o m e   
cash and cash equivalents
c a s h   a n d   c a s h   e q ui v a l e n t s   c o m p r i s e   c a s h   b al a n c e s   a n d   c all   d e p o s i t s  
w hi c h   a r e   r ead il y   c o n v e r t ib l e   t o   k n o w n   a m oun t s   o f   c a s h   a n d   w hi c h   
ar e   s ubj e c t   t o   in s i g ni fi c a n t   r i s k   o f   c h an g e s   in   v a lu e   a n d   h a v e   an    
o r i g in al   m a t ur i t y   o f   t hr e e   m o n t h s   o r   l e s s      b ank   o v e r dr af t s   t h at   a r e 
r e p a y a b l e   o n   d e m an d   a n d   f o r m   a n   in t e g r a l   p ar t   o f   t h e   g r o up ’ s   
c a s h   m a n a g e m e n t   a r e   in c lu d e d   a s   a   c o m p o n e n t   o f   c a s h   an d   c a s h 
e q ui v a l e n t s   f o r   t h e   p ur p o s e   o nl y   o f   t h e   c o n s o li d at e d   s t at e m e n t    
o f   c a s h   fl o w s 
derivatives
d e r i v at i v e s   a r e   ac c o un t e d   f o r   in   ac c o r d a n c e   w i t h   t h e   p o li c y   in   
n o t e   1  e   i ii  
derecognition
t h e   g r o up   d e r e c og ni s e s   a   fi n a n c i a l   a s s e t   w h e n   t h e   c o n t r ac t u a l   
r i g h t s   t o   t h e   c a s h   fl o w s   f r o m   t h e   a s s e t   e x pir e    o r   i t   t r a n s f e r s   t h e   
r i g h t s   t o   r e c e i v e   t h e   c o n t r ac t u a l   c a s h   fl o w s   o n   t h e   fi n a n c i a l   a s s e t    
in   a   t r a n s ac t i o n   in   w hi c h   s ub s t a n t i all y   a ll   t h e   r i s k s   a n d   r e w a r d s   o f 
o w n e r s hip   o f   t h e   fi n a n c i a l   a s s e t   a r e   t r a n s f e r r e d      a n y   in t e r e s t   in 
t r a n s f e r r e d   fi n a n c i a l   a s s e t s   t h at   i s   c r eat e d   o r   r e t a in e d   b y   t h e   g r o up    
i s   r e c og ni s e d   a s   a   s e p ar at e   a s s e t   o r   li a bili t y 
 i i  	 f i n a nc i a l 	 l i a b i l i t i e s
f in an c i al   li a bili t i e s   a r e   e i t h e r   c l a s s i fi e d   a s   fi n a n c i a l   li a bili t i e s   m ea s ur e d  
a t   a m o r t i s e d   c o s t    o r   fi n a n c i a l   li a bili t i e s   a t   f a ir   v a lu e   t hr o u g h   p r o fi t   o r 
l o s s      f in an c i a l   li a bili t i e s   in c lu d e   t r ad e   an d   o t h e r   p a y ab l e s    ac c r u a l s   
fi n a n c e   d e b t   a n d   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t s      t h e   g r o up 
d e t e r min e s   t h e   c l a s s i fi c at i o n   o f   i t s   fi n a n c i a l   li a bili t i e s   at   ini t i a l  
r e c og ni t i o n      f in an c i a l   li a bili t i e s   a r e   r e c og ni s e d   ini t i a ll y   at   f a ir   v a lu e  
n o r m a ll y   b e in g   t h e   t r a n s ac t i o n   p r i c e   p lu s    in   t h e   c a s e   o f   fi n a n c i a l  
li a bili t i e s   n o t   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r   l o s s    d ir e c t l y   at t r ib u t a b l e 
t r a n s ac t i o n   c o s t s      t h e   s ub s e q u e n t   m ea s ur em e n t   o f   fi n a n c i a l   li a bili t i e s  
d e p e n d s   o n   t h e ir   c l a s s i fi c at i o n    a s   f o ll o w s 
financial liabilities measured at amortised cost
a ll   fi n a n c i a l   li a bili t i e s   a r e   ini t i a ll y   r e c og ni s e d   at   f a ir   v a lu e      f o r   in t e r e s t 
b ea r in g   l o an s   a n d   b o r r o w in g s   t hi s   i s   t h e   f a ir   v a lu e   o f   t h e   p r o c e e d s  
r e c e i v e d   n e t   o f   i s s u e   c o s t s   a s s o c i at e d   w i t h   t h e   b o r r o w in g      a f t e r   ini t i a l 
r e c og ni t i o n    fi n a n c i a l   li a bili t i e s   o t h e r   t h a n   t h o s e   at   f a ir   v a lu e   t hr o u g h 
p r o fi t   o r   l o s s   a r e   s ub s e q u e n t l y   m ea s ur e d   a t   a m o r t i s e d   c o s t   u s in g   t h e 
e f f e c t i v e   in t e r e s t   m e t h o d      a m o r t i s e d   c o s t   i s   c al c ul a t e d   b y   t a k in g   in t o 
ac c o un t   a n y   i s s u e   c o s t s   an d   a n y   d i s c oun t   o r   p r e mi um   o n   s e t t l e m e n t     
g a in s   a n d   l o s s e s   a r i s in g   o n   t h e   r e p urc h a s e    s e t t l e m e n t   o r   c an c e ll a t i o n  
o f   li a bili t i e s   a r e   r e c og ni s e d   r e s p e c t i v e l y   in   in t e r e s t   a n d   o t h e r   r e v e n u e s  
an d   fi n a n c e   c o s t s      t hi s   c a t e g o r y   o f   fi n a n c i a l   li a bili t i e s   in c lu d e s   t r ad e 
an d   o t h e r   p a y ab l e s 
convertible bonds
c o n v e r t ib l e   b o n d s   a r e   s e p ar at e d   in t o   t hr e e   c o m p o n e n t s    li a bili t y  
i s s u e r   c all   o pt i o n   a n d   e q ui t y   at   in c e p t i o n      e ac h   c o m p o n e n t   i s  
r e c og ni s e d   s e p ar at e l y 
t h e   ini t i a l   f a ir   v a lu e   o f   t h e   li a bili t y   c o m p o n e n t   o f   t h e   c o n v e r t ib l e   
b o n d   i s   d e t e r min e d   u s in g   t h e   m a r k e t   in t e r e s t   r at e   f o r   a n   e q ui v a l e n t  
n o n  c o n v e r t ib l e   b o n d   a n d   i s   s ub s e q u e n t l y   r e c o r d e d   at   an   a m o r t i s e d  
c o s t   b a s i s   u s in g   t h e   e f f e c t i v e   in t e r e s t   m e t h o d   un t il   e x t in g ui s h e d   o n 
c o n v e r s i o n   o r   m a t ur i t y   o f   t h e   b o n d s      t h e   i s s u e r   c all   o pt i o n   i s   f a ir  
v a lu e d   u s in g   a   v a lu at i o n   m o d e l   a n d   i s   m ea s ur e d   a t   eac h   b al a n c e   s h e e t  
d a t e   w i t h   c h a n g e s   in   f a ir   v a lu e   r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t    
t h e   r e m a in d e r   o f   t h e   p r o c e e d s   ar e   r e c og ni s e d   in   s h a r e h o l d e r s ’   e q ui t y  
in   r e t a in e d   ea r nin g s  wwwtuitravelplccom
76  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
g revenue
r e v e n u e   r e p r e s e n t s   t h e   a g g r e g a t e   a m oun t   ea r n e d   f r o m   in c lu s i v e 
t o ur s    s c h e d ul e d   a n d   c h ar t e r   fl y in g    p r o v i s i o n   o f   in c o min g   a g e n c y  
d e s t in a t i o n   s e r v i c e s    t r a v e l   a g e n c y   c o m mi s s i o n   r e c e i v e d   an d   o t h e r 
s e r v i c e s   s up p li e d   t o   c u s t o m e r s   in   t h e   o r d in ar y   c o ur s e   o f   b u s in e s s     
r e v e n u e   e x c lu d e s   in t r a  g r o up   t r a n s ac t i o n s   a n d   i s   s t at e d   af t e r   t h e  
d e d u c t i o n   o f   t r ad e   d i s c o un t s   a n d   s a l e s   t a x e s      r e v e n u e   i s   r e p o r t e d 
g r o s s   o f   fi x e d   c h ar g e s   w hi c h   a r e   a   li a bili t y   o f   t h e   t o ur   o p e r a t o r   o r  
a ir lin e      t h e s e   in c lu d e   a ir   p a s s e n g e r   d u t y   a n d   o t h e r   p e r   p a s s e n g e r 
c h ar g e s   a n d   l e v i e s    in c lu d in g   t h e   a t o l   p r o t e c t i o n   c o n t r ib u t i o n   in    
t h e   u k 
 i  	 r e v e n u e 	 r e c o g n i t i o n
r e v e n u e   i s   r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   w h e n  
t h e   s i g ni fi c a n t   r i s k s   a n d   r e w a r d s   o f   o w n e r s hip   h a v e   b e e n   t r a n s f e r r e d  
t o   t h e   b u y e r      t r a v e l   a g e n c y   c o m mi s s i o n s   a n d   o t h e r   r e v e n u e s   r e c e i v e d 
f r o m   t h e   s a l e   o f   t hir d  p ar t y   p r o d u c t   a r e   r e c og ni s e d   w h e n   t h e y   a r e  
ea r n e d    t y pi c a ll y   o n   r e c e ip t   o f   fi n a l   p a y m e n t      r e v e n u e   in   r e s p e c t   o f  
inh o u s e   p r o d u c t   i s   all   r e c og ni s e d   o n   t h e   d a t e   o f   d e p a r t ur e      r e v e n u e 
f r o m   in d i v i d u a l   t r a v e l   m o d ul e s   d ir e c t l y   b o o k e d   b y   t h e   c u s t o m e r    
w i t h   a ir lin e s    h o t e l s   a n d   in c o min g   a g e n c i e s   i s   r e c og ni s e d   w h e n   t h e 
c u s t o m e r   d e p ar t s   o r   u s e s   t h e   r e s p e c t i v e   s e r v i c e 
n o   r e v e n u e   i s   r e c og ni s e d   i f   t h e r e   a r e   s i g ni fi c a n t   un c e r t a in t i e s 
r e g a r d in g   r e c o v e r y   o f   t h e   c o n s i d e r at i o n   d u e   o r   a s s o c i at e d   c o s t s 
 i i  	 c l i e n t 	 m o n i e s 	 r e c e i v e d 	 i n 	 ad v a nc e 	  d e fe r r e d 	 i nc o m e 
c li e n t   m o ni e s   r e c e i v e d   at   t h e   b al a n c e   s h e e t   d a t e   r e l a t in g   t o   h o li d a y s  
c o m m e n c in g   a n d   fl i g h t s   d e p a r t in g   af t e r   t h e   y ea r   e n d   ar e   d e f e r r e d    
a n d   in c lu d e d   w i t hin   t r ad e   an d   o t h e r   p a y ab l e s 
 i i i  	 v a l u a t i o n 	 o f 	 r e v e n u e
w h e r e   t h e   g r o up   ac t s   a s   p r in c ip al    r e v e n u e   i s   s t at e d   at   t h e  
c o n t r ac t u a l   v a lu e   o f   g o o d s   a n d   s e r v i c e s   p r o v i d e d 
w h e r e   t h e   g r o up   ac t s   a s   a g e n t   an d   c o ll e c t s   am oun t s   o n   b e h al f   o f   t h e 
p r in c ip al   p r o v i d e r   o f   g o o d s   o r   s e r v i c e s    r e v e n u e   i s   s t at e d   at   t h e   v a lu e  
o f   t h e   c o m mi s s i o n s   ea r n e d   a n d   n o t   t h e   t o t al   t r a n s ac t i o n   s a l e s   v a lu e 
w h e r e   t h e   g r o up   ac t s   a s   in t e r m e d i a r y   b e t w e e n   t h e   s e r v i c e   p r o v i d e r  
a n d   t h e   e n d   c u s t o m e r    r e v e n u e   i s   p r e s e n t e d   o n   a   n e t   b a s i s   a s   t h e 
d i f f e r e n c e   b e t w e e n   t h e   s a l e s   p r i c e   t o   t h e   c u s t o m e r   a n d   t h e   c o s t   o f 
t h e   s e r v i c e s   p urc h a s e d      b u s in e s s e s   a r e   i d e n t i fi e d   a s   in t e r m e d i a r i e s  
d e p e n d e n t   o n   a   n um b e r   o f   c r i t e r i a    p r in c ip all y   in c lu d in g    t h e   c o n t r o l 
e x e rc i s e d   o v e r   t h e   p r o v i s i o n   o f   s e r v i c e    in v e n t o r y   r i s k    a n d   c u s t o m e r  
c r e d i t   r i s k 
 i v  	 a i r c r a f t 	 l e a s e 	 i nc o m e
o p e r at in g   l ea s e   r e n t a l   in c o m e s   a r e   r e c og ni s e d   in   o p e r at in g   in c o m e   
a s   ea r n e d    o n   a   s t r a i g h t lin e   b a s i s   o v e r   t h e   l ea s e   t e r m    
h expenses
 i  	 o p e r a t i n g 	 l e a s e 	 p a y m e n t s
p a y m e n t s   m ad e   un d e r   o p e r at in g   l ea s e s   a r e   r e c og ni s e d   in   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t   o n   a   s t r a i g h t lin e   b a s i s   o v e r   t h e   t e r m 
o f   t h e   l ea s e      l ea s e   in c e n t i v e s   r e c e i v e d   a r e   r e c og ni s e d   in   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t   a s   a n   in t e g r a l   p ar t   o f   t h e   t o t a l   l ea s e 
e x p e n s e   o v e r   t h e   t e r m   o f   t h e   l ea s e 
d e r i v at i v e s   a r e   r e c og ni s e d   ini t i a ll y   at   f a ir   v a lu e    at t r ib u t a b l e  
t r a n s ac t i o n   c o s t s   a r e   r e c og ni s e d   in   p r o fi t   o r   l o s s   a s   in c ur r e d   
s ub s e q u e n t   t o   ini t i a l   r e c og ni t i o n    d e r i v a t i v e s   ar e   m ea s ur e d   at   f a ir  
v a lu e    an d   c h an g e s   t h e r e in   a r e   ac c o un t e d   f o r   a s   d e s c r ib e d   b e l o w   
 i  	 c a s h 	 fl o w 	 h e d g e s
w h e r e   a   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t   i s   d e s i g n at e d   a s   a   h e d g e   o f 
t h e   v a r i a bili t y   in   c a s h   fl o w s   ar i s in g   f r o m   a   r e c og ni s e d   a s s e t   o r   li a bili t y  
o r   a   hi g hl y   p r o b ab l e   f o r e c a s t   t r a n s ac t i o n    t h e   e f f e c t i v e   p ar t   o f   a n y   f a ir  
v a lu e   g a in   o r   l o s s   o n   t h e   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t   i s   r e c og ni s e d  
d ir e c t l y   in   t h e   h e d g in g   r e s e r v e      a n y   in e f f e c t i v e   p o r t i o n   o f   t h e   h e d g e 
i s   r e c og ni s e d   im m e d i at e l y   w i t hin   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
w h e n   t h e   f o r e c a s t   t r a n s ac t i o n   s ub s e q u e n t l y   r e s ul t s   in   t h e   r e c og ni t i o n  
o f   a   n o n  fi n a n c i a l   a s s e t   o r   n o n  fi n a n c i a l   li a bili t y    t h e   a s s o c i at e d 
c umul at i v e   g a in   o r   l o s s   i s   r e m o v e d   f r o m   t h e   h e d g in g   r e s e r v e   a n d   i s 
in c lu d e d   in   t h e   ini t i a l   c o s t   o r   o t h e r   c ar r y in g   a m oun t   o f   t h e   n o n 
fi n a n c i a l   a s s e t   o r   li a bili t y      i f   a   h e d g e   o f   a   f o r e c a s t   t r a n s ac t i o n  
s ub s e q u e n t l y   r e s ul t s   in   t h e   r e c og ni t i o n   o f   a   fi n a n c i a l   a s s e t   o r   a  
fi n a n c i a l   li a bili t y    t h e   a s s o c i at e d   g a in s   a n d   l o s s e s   t h at   w e r e   r e c og ni s e d  
d ir e c t l y   in   e q ui t y   a r e   r e c l a s s i fi e d   in t o   t h e   c o n s o li d at e d   in c o m e 
s t at e m e n t   in   t h e   s a m e   p e r i o d   o r   p e r i o d s   d ur in g   w hi c h   t h e   a s s e t 
ac q uir e d   o r   li a bili t y   a s s um e d   af f e c t s   p r o fi t   o r   l o s s 
f o r   c a s h   fl o w   h e d g e s    o t h e r   t h a n   t h o s e   c o v e r e d   b y   t h e   p r e c e d in g   t w o 
p ar a g r a p h s    t h e   a s s o c i at e d   c umul at i v e   g a in   o r   l o s s   i s   r e m o v e d   f r o m 
e q ui t y   a n d   r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   in   t h e 
s a m e   p e r i o d   o r   p e r i o d s   d ur in g   w hi c h   t h e   h e d g e d   f o r e c a s t   t r a n s ac t i o n  
af f e c t s   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
p r o s p e c t i v e   h e d g e   t e s t in g   i s   p e r f o r m e d   at   t h e   in c e p t i o n   o f   t h e   h e d g e 
r e l a t i o n s hip   an d   s ub s e q u e n t l y   at   eac h   b al a n c e   s h e e t   d a t e    t hr o u g h 
c o m p ar i s o n   o f   t h e   c r i t i c a l   t e r m s   o f   t h e   h e d g e d   f o r e c a s t   t r a n s ac t i o n  
a n d   t h e   h e d g in g   in s t r um e n t      c r i t i c a l   t e r m s   a r e   t h e   m a t ur i t y    a m oun t 
a n d   c ur r e n c y   o f   t h e   c a s h   fl o w s   r e l a t in g   t o   t h e   h e d g in g   in s t r um e n t   a n d  
t h e   f o r e c a s t   h e d g e d   t r a n s ac t i o n      r e t r o s p e c t i v e   h e d g e   t e s t in g   i s 
p e r f o r m e d   at   eac h   r e p o r t in g   d a t e   p r in c ip all y   u s in g   a   d o ll a r   o f f s e t  
a n al y s i s    c o m p ar in g   t h e   c umul at i v e   c h an g e s   in   t h e   f a ir   v a lu e s   o f   t h e 
f o r e c a s t   h e d g e d   t r a n s ac t i o n   a n d   t h e   h e d g in g   in s t r um e n t 
w h e n   a   h e d g in g   in s t r um e n t   n o   l o n g e r   m e e t s   t h e   c r i t e r i a   f o r   h e d g e 
ac c o un t in g    e x pir e s   o r   i s   s o l d    t e r min at e d   o r   e x e rc i s e d    o r   t h e   e n t i t y  
r e v o k e s   d e s i g n a t i o n   o f   t h e   h e d g e   r e l a t i o n s hip    h e d g e   ac c o un t in g   i s 
d i s c o n t in u e d   p r o s p e c t i v e l y      i f   t h e   h e d g e d   f o r e c a s t   t r a n s ac t i o n   i s   s t ill 
e x p e c t e d   t o   o c c ur    t h e   c umul at i v e   g a in   o r   l o s s   at   t h at   p oin t   r e m a in s   in 
e q ui t y   a n d   i s   r e c og ni s e d   in   ac c o r d a n c e   w i t h   t h e   ab o v e   p o li c y   w h e n   t h e 
t r a n s ac t i o n   o c c ur s      i f   t h e   h e d g e d   t r a n s ac t i o n   i s   n o   l o n g e r   e x p e c t e d   t o 
t a k e   p l ac e    t h e   c umul at i v e   unr ea li s e d   g a in   o r   l o s s   r e c og ni s e d   in   e q ui t y  
i s   r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   im m e d i at e l y 
 i i  	 f a i r 	 v a l u e 	 h e d g e s
w h e r e   a   d e r i v a t i v e   fi n a n c i a l   in s t r um e n t   i s   d e s i g n at e d   a s   a   h e d g e    
o f   t h e   v a r i a bili t y   in   f a ir   v a lu e   o f   a   r e c og ni s e d   a s s e t   o r   li a bili t y   o r   a n  
unr e c og ni s e d   fi r m   c o m mi t m e n t    a ll   c h an g e s   in   t h e   f a ir   v a lu e   o f   t h e 
d e r i v a t i v e   a r e   r e c og ni s e d   im m e d i at e l y   in   t h e   in c o m e   s t at e m e n t       
t h e   c ar r y in g   v a lu e   o f   t h e   h e d g e d   i t e m   i s   ad j u s t e d   b y   t h e   c h an g e   
in   f a ir   v a lu e   t h at   i s   at t r ib u t a b l e   t o   t h e   r i s k   b e in g   h e d g e d    e v e n   i f   i t    
i s   n o r m a ll y   c ar r i e d   at   c o s t   o r   a m o r t i s e d   c o s t    a n d   an y   f a ir   v a lu e   g a in s  
o r   l o s s e s   o n   r e m ea s ur e m e n t   o f   t h e   h e d g e d   r i s k   a r e   r e c og ni s e d 
im m e d i at e l y   in   t h e   in c o m e   s t at e m e n t    e v e n   i f   t h o s e   g a in s   w o ul d 
n o r m a ll y   b e   r e c og ni s e d   d ir e c t l y   in   e q ui t y  
financial statements
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group at a glance strategic overview business performance governance financial statements shareholder information
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t h e   f a ir   v a lu e   o f   t h e   a w a r d s   i s   m ea s ur e d   u s in g   o pt i o n   v a lu at i o n 
m o d e l s    t a k in g   in t o   ac c o un t   t h e   t e r m s   a n d   c o n d i t i o n s   up o n   w hi c h   t h e  
a w a r d s   w e r e   m ad e      t h e   a m o un t   r e c og ni s e d   a s   a n   e x p e n s e   i s   ad j u s t e d  
t o   r e fl e c t   t h e   ac t u al   n um b e r   o f   s h a r e   a w a r d s   t h at   v e s t   e x c e pt   w h e r e  
f o r f e i t ur e   i s   d u e   o nl y   t o   m ar k e t  b a s e d   p e r f o r m an c e   c o n d i t i o n s   n o t  
m e e t in g   t h e   t hr e s h o l d   f o r   v e s t in g 
f o r   c a s h  s e t t l e d   t r a n s ac t i o n s    t h e   r e s ul t in g   li a bili t y   f o r   t h e   g r o up   i s 
c h ar g e d   t o   e x p e n s e s   at   i t s   f a ir   v a lu e   a s   at   t h e   d a t e   o f   t h e   p e r f o r m an c e  
o f   t h e   s e r v i c e   b y   t h e   b e n e fi c i a r y      un t il   p a y m e n t   o f   t hi s   li a bili t y    t h e 
f a ir   v a lu e   o f   t h e   li a bili t y   i s   r e m ea s ur e d   a t   e v e r y   r e p o r t in g   d a t e   a n d   a ll 
c h an g e s   in   t h e   f a ir   v a lu e   a r e   c ar r i e d   w i t h   an   e f f e c t   o n   r e s ul t s 
 i v  	 o w n 	 s h a r e s 	 h e l d 	 b y 	 t h e 	 e m p l o y e e 	 b e n e fi t 	 t r u s t s	
t r a n s ac t i o n s   o f   t h e   g r o up  s p o n s o r e d   e m p l o y e e   b e n e fi t   t r u s t s    t h e 
t r u s t s    a r e   in c lu d e d   in   t h e   g r o up ’ s   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   
in   p ar t i c ul a r    t h e   t r u s t ’ s   p urc h a s e   o f   s h a r e s   in   t h e   c o m p a n y   i s   d e bi t e d  
d ir e c t l y   in   e q ui t y   t o   r e t a in e d   ea r nin g s   d e fi c i t  
 v  	 s h o r t  te r m 	 b e n e fi t s
s h o r t  t e r m   e m p l o y e e   b e n e fi t s   ar e   m ea s ur e d   o n   a n   un d i s c o un t e d  
b a s i s   a n d   ar e   e x p e n s e d   a s   t h e   r e l a t e d   s e r v i c e   i s   p r o v i d e d 
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f in an c i a l   in c o m e   c o m p r i s e s   in t e r e s t   in c o m e   o n   f un d s   in v e s t e d 
 in c lu d in g   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t s     d i v i d e n d   in c o m e    g a in s    
o n   t h e   d i s p o s a l   o f   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t s   a n d   c h an g e s   in   t h e 
f a ir   v a lu e   o f   fi n a n c i a l   a s s e t s   o r   li a bili t i e s   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r 
l o s s      int e r e s t   in c o m e   i s   r e c og ni s e d   a s   i t   ac c r u e s   in   p r o fi t   o r   l o s s    u s in g 
t h e   e f f e c t i v e   in t e r e s t   m e t h o d      d i v i d e n d   in c o m e   i s   r e c og ni s e d   in    
p r o fi t   o r   l o s s   o n   t h e   d a t e   t h at   t h e   g r o up ’ s   r i g h t   t o   r e c e i v e   p a y m e n t   i s 
e s t a b li s h e d   w hi c h    in   t h e   c a s e   o f   q u o t e d   s e c ur i t i e s    i s   t h e   e x  d i v i d e n d 
d a t e      f o r e i g n   c ur r e n c y   g a in s   a n d   l o s s e s   a r e   r e p o r t e d   o n   a   n e t   b a s i s 
f in an c i a l   e x p e n s e s   c o m p r i s e   in t e r e s t   e x p e n s e   o n   b o r r o w in g s  
un w in d in g   o f   t h e   d i s c o un t   o n   p r o v i s i o n s    c h an g e s   in   t h e   f a ir   v a lu e   o f 
fi n a n c i a l   a s s e t s   o r   li a bili t i e s   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r   l o s s   an d 
im p a ir m e n t   l o s s e s   r e c og ni s e d   o n   fi n a n c i a l   a s s e t s      a ll   b o r r o w in g   c o s t s  
a r e   r e c og ni s e d   in   p r o fi t   o r   l o s s   u s in g   t h e   e f f e c t i v e   in t e r e s t   m e t h o d     
f o r e i g n   c ur r e n c y   g a in s   a n d   l o s s e s   a r e   r e p o r t e d   o n   a   n e t   b a s i s 
k taxation
in c o m e   t a x   c o m p r i s e s   c ur r e n t   a n d   d e f e r r e d   t a x      in c o m e   t a x   i s  
r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   e x c e pt   t o   t h e    
e x t e n t   t h at   i t   r e l a t e s   t o   i t e m s   r e c og ni s e d   d ir e c t l y   in   e q ui t y    in    
w hi c h   c a s e   i t   i s   r e c og ni s e d   in   e q ui t y 
 i  	 c u r r e n t 	 t a x
c ur r e n t   t a x   i s   t h e   e x p e c t e d   t a x   p a y ab l e   o n   t h e   t a x ab l e   in c o m e   f o r    
t h e   p e r i o d    u s in g   t a x   r a t e s   e n ac t e d   o r   s ub s t a n t i v e l y   e n ac t e d   at   t h e 
b al a n c e   s h e e t   d a t e    a n d   a n y   ad j u s t m e n t   t o   t a x   p a y ab l e   in   r e s p e c t   
o f   p r e v i o u s   p e r i o d s 
 i i  	 f i n a nc e 	 l e a s e 	 p a y m e n t s
m inimum   l ea s e   p a y m e n t s   a r e   a p p o r t i o n e d   b e t w e e n   t h e   fi n a n c e 
c h ar g e   a n d   t h e   r e d u c t i o n   o f   t h e   o u t s t an d in g   li a bili t y      t h e   fi n a n c e  
c h ar g e   i s   a ll o c at e d   t o   eac h   p e r i o d   d ur in g   t h e   l ea s e   t e r m   s o   a s   t o 
p r o d u c e   a   c o n s t a n t   p e r i o d i c   r at e   o f   in t e r e s t   o n   t h e   r e m a inin g   b al a n c e  
o f   t h e   li a bili t y 
 i i i  	 m a r k e t i n g 	 a n d 	 o t h e r 	 d i r e c t 	 s a l e s 	 c o s t s
m a r k e t in g    ad v e r t i s in g   a n d   o t h e r   p r o m o t i o n a l   c o s t s    in c lu d in g   t h o s e 
r e l a t e d   t o   t h e   p r o d u c t i o n   o f   b r o c h ur e s    a r e   e x p e n s e d   w h e n   t h e 
b e n e fi t   o f   t h e   g o o d s   o r   s e r v i c e s   i s   m ad e   a v a il ab l e   t o   t h e   g r o up      
in   p ar t i c ul ar    b r o c h ur e   c o s t s   ar e   e x p e n s e d   w h e n   t h e   g r o up   h a s    
ac c e s s   t o   t h e   r e l a t e d   ad v e r t i s in g   o r   p r o m o t i o n a l   m at e r i al 
i employee benefits
 i  	 d e fi n e d 	 c o n t r i b u t i o n 	 p l a n s
o b li g a t i o n s   f o r   c o n t r ib u t i o n s   t o   d e fi n e d   c o n t r ib u t i o n   p e n s i o n   p l a n s  
ar e   r e c og ni s e d   a s   a n   e x p e n s e   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   
a s   in c ur r e d 
 i i  	 d e fi n e d 	 b e n e fi t 	 p l a n s
t h e   g r o up ’ s   n e t   o b li g at i o n   in   r e s p e c t   o f   d e fi n e d   b e n e fi t   p e n s i o n   p l a n s  
i s   c al c ul a t e d   s e p ar at e l y   f o r   eac h   p l a n   b y   e s t im at in g   t h e   a m oun t   o f 
f u t ur e   b e n e fi t   t h at   e m p l o y e e s   h a v e   ea r n e d   in   r e t ur n   f o r   t h e ir   s e r v i c e 
in   c ur r e n t   a n d   p r i o r   p e r i o d s      t h at   b e n e fi t   i s   d i s c o un t e d   t o   d e t e r min e  
i t s   p r e s e n t   v a lu e   a n d   a n y   unr e c og ni s e d   p a s t   s e r v i c e   c o s t s   a n d   t h e   f a ir 
v a lu e   o f   a n y   p l a n   a s s e t s   i s   d e d u c t e d   in   c al c ul a t in g   t h e   o v e r a ll   li a bili t y     
t h e   li a bili t y   d i s c o un t   r at e   i s   t h e   y i e l d   at   t h e   b al a n c e   s h e e t   d a t e   o n   
a a   c r e d i t  r at e d   b o n d s   d e n o min at e d   in   t h e   c ur r e n c y   o f    a n d   h a v in g   
t h e   s a m e   m a t ur i t y   d a t e s   ap p r o x im a t in g   t o    t h e   t e r m s   o f   t h e   g r o up ’ s 
o b li g at i o n s      t h e   c al c ul a t i o n   i s   p e r f o r m e d   b y   a   q u ali fi e d   ac t u ar y   u s in g  
t h e   p r oj e c t e d   uni t   c r e d i t   m e t h o d 
w h e r e   t h e   c al c ul a t i o n   r e s ul t s   in   a   b e n e fi t   t o   t h e   g r o up    t h e   a s s e t  
r e c og ni s e d   i s   limi t e d   t o   t h e   p r e s e n t   v a lu e   o f   an y   f u t ur e   r e f un d s   f r o m 
t h e   p l a n   o r   r e d u c t i o n s   in   f u t ur e   c o n t r ib u t i o n s   t o   t h e   p l a n   w hi c h   a r e 
un d e r   t h e   c o n t r o l   o f   t h e   g r o up 
w h e n   t h e   b e n e fi t s   o f   a   p l a n   a r e   im p r o v e d    t h e   p o r t i o n   o f   t h e  
in c r ea s e d   b e n e fi t   r e l a t in g   t o   p a s t   s e r v i c e s   b y   e m p l o y e e s   i s   r e c og ni s e d  
a s   a n   e x p e n s e   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   o n   a   s t r a i g h t lin e 
b a s i s   o v e r   t h e   a v e r a g e   p e r i o d   un t il   t h e   b e n e fi t s   b e c o m e   v e s t e d      
t o   t h e   e x t e n t   t h at   t h e   b e n e fi t s   v e s t   im m e d i at e l y    t h e   e x p e n s e   i s 
r e c og ni s e d   im m e d i at e l y   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
a ll   ac t u ar i a l   g a in s   a n d   l o s s e s   a r e   r e c og ni s e d   in   t h e   p e r i o d   t h e y    
o c c ur   d ir e c t l y   in   e q ui t y   t hr o u g h   t h e   c o n s o li d at e d   s t at e m e n t   o f 
c o m p r e h e n s i v e   in c o m e      e i t h e r   m o n t hl y   o r   a nn u a l   c o n t r ib u t i o n s   
ar e   m ad e   t o   f un d e d   s c h e m e s 
 i i i  	 s h a r e  b a s e d 	 p a y m e n t 	 t r a n s a c t i o n s
t h e   g r o up ’ s   s h a r e   a w a r d   p r og r a m m e s   a ll o w   c e r t a in   g r o up   e m p l o y e e s 
t o   ac q uir e   s h a r e s   o f   t h e   c o m p an y    t h e s e   s h a r e s   a r e   a w a r d e d   b y   t h e 
c o m p a n y      f o r   e q ui t y  s e t t l e d   t r a n s ac t i o n s    t h e   f a ir   v a lu e   o f   s e r v i c e s   
i s   m ea s ur e d   b y   t h e   f a ir   v a lu e   o f   t h e   s h a r e s   at   t h e   t im e   a w a r d e d   an d   
i s   r e c og ni s e d   a s   a n   e m p l o y e e   e x p e n s e   w i t h   a   c o r r e s p o n d in g   in c r ea s e 
in   e q ui t y      t h e   f a ir   v a lu e   i s   s p r ead   o v e r   t h e   p e r i o d   d ur in g   w hi c h   t h e 
e m p l o y e e   b e c o m e s   e n t i t l e d   t o   t h e   a w a r d s  wwwtuitravelplccom
78  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
financial statements
notes to the consolidated financial statements c o n t i n u e d
c e r t a in   a s s e t s  li a bili t i e s   a r e   e x c lu d e d   f r o m   t h e   m ea s ur em e n t   b a s i s   
o f   if r s   5   in c lu d in g    d e f e r r e d   t a x   a s s e t s    i a s   1 2   in c o m e   t a x e s     a s s e t s  
a r i s in g   f r o m   e m p l o y e e   b e n e fi t s    i a s   1 9   e m p l o y e e   b e n e fi t s    a n d 
fi n a n c i a l   a s s e t s   w i t hin   t h e   s c o p e   o f   i a s   3 9   f in an c i a l   in s t r um e n t s   
r e c og ni t i o n   a n d   m ea s ur e m e n t 
o investments
unl e s s   d e s i g n at e d   at   f a ir   v a lu e   t hr o u g h   p r o fi t   a n d   l o s s    t r ad e 
in v e s t m e n t s   a r e   c l a s s i fi e d   a s   a v a il ab l e   f o r   s a l e   a s s e t s   a n d   a r e   in c lu d e d  
un d e r   n o n  c ur r e n t   a s s e t s      t h e y   ar e   r e c o r d e d   a t   f a ir   v a lu e   w i t h 
m o v e m e n t s   in   v a lu e   t a k e n   t o   e q ui t y      a n y   im p a ir m ent   t o   v a lu e   i s 
r e c o r d e d   in   t h e   in c o m e   s t at e m e n t 
s h o r t  t e r m   in v e s t m e n t s   in   d e b t   a n d   e q ui t y   s e c ur i t i e s   w hi c h   a r e   h e l d 
f o r   t r ad in g   ar e   c l a s s i fi e d   a s   c ur r e n t   a s s e t s   a n d   a r e   s t at e d   a t   f a ir   v a lu e   
w i t h   a n y   r e s ul t a n t   g a in   o r   l o s s   r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t 
p intangible assets
 i  	 g o o d w i l l
a ll   b u s in e s s   c o m bin at i o n s   a r e   ac c o un t e d   f o r   b y   a p p l y in g   t h e   
p urc h a s e   m e t h o d 
g o o d w ill   r e p r e s e n t s   a m oun t s   a r i s in g   o n   ac q ui s i t i o n   o f   s ub s i d i ar i e s  
j oin t   v e n t ur e s   a n d   a s s o c i at e s      g o o d w ill   r e p r e s e n t s   t h e   d i f f e r e n c e  
b e t w e e n   t h e   f a ir   v a lu e   o f   c o n s i d er at i o n   p a i d   o r   p a y ab l e   a n d   t h e   n e t 
f a ir   v a lu e   o f   t h e   i d en t i fi ab l e   a s s e t s    li a bili t i e s   a n d   c o n t in g e n t   li a bili t i e s  
ac q uir e d      i d e n t i fi a b l e   in t a n g ib l e s    s u c h   a s   b r an d s   a n d   c u s t o m e r  
r e l a t i o n s hip s    a r e   t h o s e   w hi c h   c an   b e   s o l d   s e p ar at e l y   o r   w hi c h   a r i s e 
f r o m   c o n t r ac t u a l   o r   l e g a l   r i g h t s   r e g a r dl e s s   o f   w h e t h e r   t h o s e   r i g h t s   a r e  
s e p ar a b l e    a n d   t h e   f a ir   v a lu e   c an   b e   r e li a b l y   m ea s ur e d      i d e n t i fi a b l e  
in t a n g ib l e s   a r e   t h o s e   w hi c h   c an   b e   s o l d   s e p ar at e l y   o r   w hi c h   a r i s e   f r o m 
l e g al   r i g h t s   r e g a r dl e s s   o f   w h e t h e r   t h o s e   r i g h t s   a r e   s e p ar a b l e      g o o d w ill 
i s   s t at e d   at   c o s t   l e s s   a n y   ac c umul a t e d   im p a ir m e n t   l o s s e s      g o o d w ill   i s 
a ll o c at e d   t o   t h o s e   c a s h   g e n e r at in g   uni t s   e x p e c t e d   t o   b e n e fi t   f r o m   t h e 
b u s in e s s   c o m bin at i o n   a n d   i s   n o t   a m o r t i s e d   b u t   t e s t e d   a nn u a ll y   f o r  
im p a ir m e n t      im p a ir m e n t   t e s t in g   i s   b a s e d   o n   a s s e t s   g r o up e d   at   t h e 
l o w e s t   l e v e l   at   w hi c h   g o o d w ill   i s   m o ni t o r e d   f o r   in t e r n a l   m a n a g e m e n t  
p ur p o s e s      in   r e s p e c t   o f   j oin t   v e n t ur e s   a n d   a s s o c i at e s    t h e   c ar r y in g 
a m oun t   o f   g o o d w ill   i s   in c lu d e d   in   t h e   c ar r y in g   a m oun t   o f   t h e  
in v e s t m e n t   in   t h e   j oin t   v e n t ur e   o r   a s s o c i at e 
fa ir   v a lu e   ad j u s t m e n t s   a r e   m ad e   in   r e s p e c t   o f   ac q ui s i t i o n s      i f   at   t h e 
b al a n c e   s h e e t   d a t e    t h e   a m oun t s   o f   f a ir   v a lu e s   o f   t h e   ac q uir e e ’ s  
i d e n t i fi ab l e   a s s e t s   a n d   li a bili t i e s   c an   o nl y   b e   e s t a b li s h e d   p r o v i s i o n all y  
t h e n   t h e s e   v a lu e s   a r e   u s e d      a n y   ad j u s t m e n t s   t o   t h e s e   v a lu e s   a r e  
t a k e n   a s   ad j u s t m e n t s   t o   g o o d w ill   a n d   mu s t   b e   r e c o r d e d   w i t hin   
1 2   m o n t h s   o f   t h e   ac q ui s i t i o n      n e g a t i v e   g o o d w ill   ar i s in g   o n   a n  
ac q ui s i t i o n   i s   r e c og ni s e d   in   t h e   in c o m e   s t at e m e n t   up o n   ac q ui s i t i o n 
 i i  	 c o m p u te r 	 s o f t w a r e 	 a n d 	 o t h e r 	 i n t a n g i b l e 	 a s s e t s
c o m p u t e r   s o f t w a r e   c o n s i s t s   o f   a ll   s o f t w a r e   t h at   i s   n o t   a n   in t e g r a l    
p ar t   o f   t h e   r e l a t e d   c o m p u t e r   h a r d w ar e   a n d   i s   s t at e d   at   c o s t   l e s s  
ac c umul a t e d   a m o r t i s a t i o n   a n d   im p a ir m e n t   l o s s e s 
 i i  	 d e fe r r e d 	 t a x
d e f e r r e d   t a x   i s   p r o v i d e d   o r   r e c og ni s e d   u s in g   t h e   b al a n c e   s h e e t   li a bili t y  
m e t h o d    p r o v i d in g   f o r   t e m p o r a r y   d i f f e r e n c e s   b e t w e e n   t h e   c ar r y in g 
a m oun t s   o f   a s s e t s   a n d   li a bili t i e s   f o r   fi n a n c i a l   r e p o r t in g   p ur p o s e s   an d 
t h e   a m oun t s   u s e d   f o r   t a x a t i o n   p ur p o s e s      t h e   f o ll o w in g   t e m p o r a r y  
d i f f e r e n c e s   a r e   n o t   p r o v i d e d   f o r    t h e   ini t i a l   r e c og ni t i o n   o f   g o o d w ill   
n o t   d e d u c t ib l e   f o r   t a x   p ur p o s e s    t h e   ini t i a l   r e c og ni t i o n   o f   a s s e t s   o r 
li a bili t i e s   in   a   t r a n s ac t i o n   t h at   i s   n o t   a   b u s in e s s   c o m bin at i o n   a n d 
d i f f e r e n c e s   r e l a t in g   t o   in v e s t m e n t s   in   s ub s i d i a r i e s   t o   t h e   e x t e n t   t h at  
t h e y   w ill   p r o b ab l y   n o t   r e v e r s e   in   t h e   f o r e s e ea b l e   f u t ur e      t h e   a m oun t 
o f   d e f e r r e d   t a x   a s s e t   r e c og ni s e d   i s   b a s e d   o n   t h e   e x p e c t e d   m a nn e r   
o f   r ea li s at i o n   o r   s e t t l e m e n t   o f   t h e   c ar r y in g   a m oun t   o f   a s s e t s   a n d 
li a bili t i e s    u s in g   t h e   t a x   r at e   at   w hi c h   t h e   a s s e t   o r   li a bili t y   i s   e x p e c t e d 
t o   r e v e r s e   in   f u t ur e   p e r i o d s    b a s e d   o n   t a x   l a w s   e n ac t e d   o r 
s ub s t a n t i v e l y   e n ac t e d   at   t h e   b al a n c e   s h e e t   d a t e 
a   d e f e r r e d   t a x   a s s e t   i s   r e c og ni s e d   o nl y   t o   t h e   e x t e n t   t h at   i t   i s 
p r o b ab l e   t h at   f u t ur e   t a x ab l e   p r o fi t s   w ill   b e   a v a il ab l e   a g a in s t   w hi c h   
t h e   a s s e t   c an   b e   u t ili s e d      d e f e r r e d   t a x   a s s e t s   a r e   r e d u c e d   t o   t h e 
e x t e n t   t h at   i t   i s   n o   l o n g e r   p r o b ab l e   t h at   t h e   r e l a t e d   t a x   b e n e fi t   w ill   
b e   r ea li s e d 
l dividends
d i v i d e n d   d i s t r ib u t i o n   t o   t h e   c o m p a n y ’ s   s h a r e h o l d e r s   i s   r e c og ni s e d   
a s   a   li a bili t y   in   t h e   g r o up ’ s   fi n a n c i a l   s t at e m e n t s   in   t h e   p e r i o d   in   w hi c h 
t h e   d i v i d e n d s   a r e   a p p r o p r i a t el y   a u t h o r i s e d   an d   ap p r o v e d   f o r   p a y m e n t 
a n d   a r e   n o   l o n g e r   at   t h e   d i s c r e t i o n   o f   t h e   c o m p a n y      unp a i d   d i v i d e n d s 
t h at   d o   n o t   m e e t   t h e s e   c r i t e r i a   a r e   d i s c l o s e d   in   t h e   n o t e s   t o   t h e 
fi n a n c i a l   s t at e m e n t s 
m earnings per share
t h e   g r o up   p r e s e n t s   b a s i c   an d   d ilu t e d   ea r nin g s   p e r   s h a r e    e p s    d a t a  
f o r   i t s   o r d in ar y   s h a r e s      b a s i c   e p s   i s   c al c ul a t e d   b y   d i v i d in g   t h e   p r o fi t  
o r   l o s s   at t r ib u t a b l e   t o   o r d in ar y   s h a r e h o l d e r s   o f   t h e   c o m p an y   b y   t h e 
w e i g h t e d   a v e r a g e   n um b e r   o f   o r d in ar y   s h a r e s   o u t s t a n d in g   d ur in g   t h e 
p e r i o d      d ilu t e d   e p s   i s   d e t e r min e d   b y   ad j u s t in g   t h e   w e i g h t e d   a v e r a g e 
n um b e r   o f   o r d in ar y   s h a r e s   o u t s t an d in g   f o r   t h e   e f f e c t s   o f   a ll   d ilu t i v e  
p o t e n t i a l   o r d in ar y   s h a r e s      e p s   m ea s ur e s   f o r   b o t h   c o n t in uin g   a n d 
d i s c o n t in u e d   o p e r at i o n s   h a v e   b e e n   p r e s e n t e d   in   ac c o r d a n c e   w i t h    
i a s   3 3      t h e   g r o up   a l s o   p r e s e n t s   a   b a s i c   a n d   d ilu t e d   un d e r l y in g    
e p s   m ea s ur e   b a s e d   o n   un d e r l y in g   ea r nin g s   a s   d e fi n e d   in   
n o t e   1  b   i v    a b o v e      f ur t h e r   d e t a il s   o f   t h e   e p s   c al c ul a t i o n   a r e 
p r e s e n t e d   in   n o t e   3 3 
n noncurrent assets held for sale 
if r s   5   r e q uir e s   t h at   a   n o n  c ur r e n t   a s s e t   o r   a   d i s p o s a l   g r o up  
c o n t a inin g   a   n o n  c ur r e n t   a s s e t   i s   c l a s s i fi e d   a s   h e l d   f o r   s a l e   i f   i t s 
c ar r y in g   a m o un t   w ill   b e   r e c o v e r e d   p r in c ip all y   t hr o u g h   s a l e   r at h e r   t h a n 
t hr o u g h   c o n t in uin g   u s e    i t   i s   a v a il ab l e   f o r   im m e d i at e   s a l e   a n d   s a l e   i s 
hi g hl y   p r o b ab l e   w i t hin   o n e   y ea r 
o n   ini t i a l   c l a s s i fi c at i o n   a s   h e l d   f o r   s a l e    n o n  c ur r e n t   a s s e t s   a n d 
d i s p o s a l   g r o up s   ar e   m ea s ur e d   at   t h e   l o w e r   o f   p r e v i o u s   c ar r y in g  
a m oun t   an d   f a ir   v a lu e   l e s s   c o s t s   t o   s e ll   w i t h   a n y   ad j u s t m e n t s    
t a k e n   t o   p r o fi t   o r   l o s s      t h e   s a m e   a p p li e s   t o   g a in s   a n d   l o s s e s    
o n   s ub s e q u e n t   r e m ea s ur e m e n t 
a n y   im p a ir m e n t   l o s s   o n   a   d i s p o s al   g r o up   i s   a ll o c at e d   fi r s t   t o   g o o d w ill  
a n d   t h e n   t o   r e m a inin g   a p p li c a b l e   a s s e t s   o n   a   p r o   r at a   b a s i s    e x c e pt   n o 
l o s s   i s   all o c at e d   t o   in v e n t o r i e s    fi n a n c i a l   a s s e t s    d e f e r r e d   t a x   a s s e t s    
o r   e m p l o y e e   b e n e fi t   a s s e t s    w hi c h   c o n t in u e   t o   b e   m ea s ur e d   in  
ac c o r d a n c e   w i t h   t h e   g r o up ’ s   ac c o un t in g   p o li c i e s   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  79
a s s e t s   un d e r   c o n s t r u c t i o n   a n d   ad v a n c e   p a y m e n t s    in c lu d in g 
c api t a li s e d   b o r r o w in g   c o s t s    f o r   f u t ur e   a irc r af t   a r e   n o t   d e p r e c i at e d    
up o n   t h e   d e li v e r y   o f   t h e   a irc r af t    t h e   ad v a n c e   p a y m e n t s   a r e   
r e  c at e g o r i s e d   t o   a irc r af t   a s s e t s   an d   d e p r e c i at i o n   i s   c o m m e n c e d 
 i v  	 b o r r o w i n g 	 c o s t s
in   r e s p e c t   o f   b o r r o w in g   c o s t s   r e l a t in g   t o   q u ali f y in g   a s s e t s    t h e   g r o up 
c api t a li s e s   b o r r o w in g   c o s t s   d ir e c t l y   at t r ib u t a b l e   t o   t h e   ac q ui s i t i o n  
c o n s t r u c t i o n   o r   p r o d u c t i o n   o f   a   q u ali f y in g   a s s e t   a s   p ar t   o f   t h e   c o s t    
o f   t h at   a s s e t   
t h e   g r o up   h a s   c api t a li s e d   b o r r o w in g   c o s t s   w i t h   r e s p e c t   t o   
p r e  d e li v e r y   p a y m e n t s   r e l a t in g   t o   a irc r af t 
 v  	 s a l e 	 a n d 	 l e a s e b a c k 	 t r a n s a c t i o n s
w h e n   a   s a l e   a n d   l ea s e b ac k   r e s ul t s   in   a   fi n a n c e   l ea s e    a n y   g a in   o n    
t h e   s a l e   i s   d e f e r r e d   a n d   r e c og ni s e d   a s   in c o m e   o v e r   t h e   l ea s e   t e r m     
a n y   l o s s   o n   t h e   s a l e   i s   im m e d i at e l y   r e c og ni s e d   a s   a n   im p a ir m e n t   
l o s s   w h e n   t h e   s a l e   o c c ur s 
i f   t h e   l ea s e b ac k   i s   c l a s s i fi e d   a s   a n   o p e r at in g   l ea s e    t h e n   a n y   g a in    
i s   r e c og ni s e d   im m e d i at e l y   i f   t h e   s a l e   a n d   l ea s e b ac k   t e r m s   a r e  
d e m o n s t r a b l y   at   f a ir   v a lu e      o t h e r w i s e    t h e   s a l e   a n d   l ea s e b ac k   a r e  
ac c o un t e d   f o r   a s   f o ll o w s 
•   i f   t h e   s a l e   p r i c e   i s   b e l o w   f a ir   v a lu e    t h e n   t h e   g a in   o r   l o s s   i s 
r e c og ni s e d   im m e d i at e l y    o t h e r   t h a n   t o   t h e   e x t e n t   t h at   a   l o s s   i s 
c o m p e n s a t e d   f o r   b y   f u t ur e   r e n t a l s   at   a   b e l o w  m a r k e t   p r i c e    t h e n 
t h e   l o s s   i s   d e f e r r e d   an d   a m o r t i s e d   o v e r   t h e   p e r i o d   t h at   t h e   a s s e t    
i s   e x p e c t e d   t o   b e   u s e d 
•   i f   t h e   s a l e   p r i c e   i s   ab o v e   f a ir   v a lu e    t h e n   a n y   g a in   i s   d e f e r r e d   a n d 
a m o r t i s e d   o v e r   t h e   u s e f ul   li f e   o f   t h e   a s s e t 
•   i f   t h e   f a ir   v a lu e   o f   t h e   a s s e t   i s   l e s s   t h a n   t h e   c ar r y in g   a m oun t   o f   
t h e   a s s e t   at   t h e   d a t e   o f   t h e   t r a n s ac t i o n    t h e n   t h at   d i f f e r e n c e   i s 
r e c og ni s e d   im m e d i at e l y   a s   a   l o s s   o n   t h e   s a l e 
r impairments
 i  	 f i n a nc i a l 	 a s s e t s
a   fi n a n c i a l   a s s e t   i s   a s s e s s e d   at   eac h   r e p o r t in g   d a t e   t o   d e t e r min e 
w h e t h e r   t h e r e   i s   a n y   o bj e c t i v e   e v i d e n c e   t h at   i t   i s   im p a ir e d      a   fi n a n c i a l  
a s s e t   i s   c o n s i d er e d   t o   b e   im p a ir e d   i f   o bj e c t i v e   e v i d e n c e   in d i c at e s   t h at  
o n e   o r   m o r e   e v e n t s   h a v e   h ad   a   n e g at i v e   e f f e c t   o n   t h e   e s t im at e d  
f u t ur e   c a s h   fl o w s   o f   t h at   a s s e t 
a n   im p a ir m e n t   l o s s   in   r e s p e c t   o f   a   fi n a n c i a l   a s s e t   i s   c al c ul a t e d   a s   t h e 
d i f f e r e n c e   b e t w e e n   i t s   c ar r y in g   a m oun t   a n d   i t s   r e c o v e r a b l e   a m oun t    
a n   im p a ir m e n t   l o s s   in   r e s p e c t   o f   a n   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t    
i s   c al c ul a t e d   b y   r e f e r e n c e   t o   i t s   f a ir   v a lu e      t h e   r e c o v e r a b l e   am oun t    
o f   t h e   g r o up ’ s   r e c e i v ab l e s   w hi c h   a r e   c ar r i e d   at   a m o r t i s e d   c o s t   i s 
c al c ul a t e d   a s   t h e   p r e s e n t   v a lu e   o f   e s t im at e d   f u t ur e   c a s h   fl o w s  
d i s c o un t e d   a t   t h e   o r i g in al   e f f e c t i v e   in t e r e s t   r at e    i  e    t h e   e f f e c t i v e 
in t e r e s t   r at e   c o m p u t e d   at   ini t i a l   r e c og ni t i o n   o f   t h e s e   fi n a n c i a l   a s s e t s      
r e c e i v a b l e s   w i t h   a   s h o r t   d ur a t i o n   ar e   n o t   d i s c o un t e d  
in d i v i d u a ll y   s i g ni fi c a n t   fi n a n c i a l   a s s e t s   ar e   t e s t e d   f o r   im p a ir m e n t   
o n   a n   in d i v i d u a l   b a s i s      t h e   r e m a inin g   fi n a n c i a l   a s s e t s   ar e   a s s e s s e d  
c o ll e c t i v e l y   in   g r o up s   t h at   s h a r e   s imil a r   c r e d i t   r i s k   c h ar ac t e r i s t i c s 
a ll   im p a ir m e n t   l o s s e s   a r e   r e c og ni s e d   in   p r o fi t   o r   l o s s      a n y   c umul at i v e 
l o s s   in   r e s p e c t   o f   an   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t   p r e v i o u s l y 
r e c og ni s e d   in   e q ui t y   i s   t r a n s f e r r e d   t o   p r o fi t   o r   l o s s      a n   im p a ir m e n t  
l o s s   i s   r e v e r s e d   i f   t h e   r e v e r s a l   c an   b e   r e l a t e d   o bj e c t i v e l y   t o   a n   e v e n t  
o c c ur r in g   af t e r   t h e   im p a ir m e n t   l o s s   w a s   r e c og ni s e d      f o r   fi n a n c i a l  
a s s e t s   m ea s ur e d   at   a m o r t i s e d   c o s t   a n d   a v a il ab l e   f o r   s a l e   fi n a n c i a l  
a s s e t s   t h at   a r e   d e b t   s e c ur i t i e s    t h e   r e v e r s a l   i s   r e c og ni s e d   in   p r o fi t   o r  
l o s s      f o r   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t s   t h at   a r e   e q ui t y   s e c ur i t i e s   
t h e   r e v e r s a l   i s   r e c og ni s e d   d ir e c t l y   in   e q ui t y 
 i i i  	 a m o r t i s a t i o n
a m o r t i s at i o n   i s   c h ar g e d   t o   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   o n   
a   s t r a i g h t lin e   b a s i s   o v e r   t h e   e s t im at e d   u s e f ul   e c o n o mi c   li f e   o f   eac h  
t y p e   o f   in t a n g ib l e   a s s e t   a s   f o ll o w s 
c o m p u t e r   s o f t w a r e   3  1 0   y ea r s
b r an d s   1 5  2 0   y ea r s
o r d e r   b o o k   at   d a t e   o f   ac q ui s i t i o n     o v e r   t h e   p e r i o d   un t il   
t r a v e l   o c c ur s
c u s t o m e r   r e l a t i o n s hip s     o v e r   t h e   p e r i o d   d ur in g   w hi c h 
v a lu e   w ill   b e   o bt a in e d   b y   t h e  
g r o up    up   t o   1 5   y ea r s 
l i c e n c e s   ov er   the t erm of  lic enc e
s o f t w a r e   in   d e v e l o p m e n t   i s   n o t   a m o r t i s e d      up o n   c o m p l e t i o n   o f 
d e v e l o p m e n t   a n d   b r in g in g   t h e   s o f t w a r e   in t o   u s e    t h e   c o s t s   a r e   
r e  c at e g o r i s e d   in t o   c o m p u t e r   s o f t w a r e   a n d   a m o r t i s a t i o n   c o m m e n c e s 
q property plant and equipment
 i  	 o w n e d 	 a s s e t s
i t e m s   o f   p r o p e r t y    p l a n t   a n d   e q uip m e n t   a r e   s t at e d   at   c o s t   l e s s 
ac c umul a t e d   d e p r e c i at i o n   a n d   im p a ir m e n t   l o s s e s 
w h e r e   s i g ni fi c a n t   p ar t s   o f   an   i t e m   o f   p r o p e r t y    p l a n t   a n d   e q uip m e n t  
h a v e   d i f f e r e n t   u s e f ul   li v e s    t h e y   a r e   ac c o un t e d   f o r   a s   s e p ar at e   i t e m s   
o f   p r o p e r t y    p l a n t   an d   e q uip m e n t 
 i i  	 l e a s e d 	 a s s e t s
l ea s e s   in   w hi c h   t h e   g r o up   a s s um e s   s ub s t a n t i all y   a ll   t h e   r i s k s   a n d  
r e w a r d s   o f   o w n e r s hip   a r e   c l a s s i fi e d   a s   fi n a n c e   l ea s e s      l ea s e d   a s s e t s  
ac q uir e d   b y   w a y   o f   a   fi n a n c e   l ea s e   a r e   s t at e d   at   a n   a m oun t   e q u al   t o 
t h e   l o w e r   o f   t h e ir   f a ir   v a lu e   a n d   t h e   p r e s e n t   v a lu e   o f   t h e   minimum  
l ea s e   p a y m e n t s   at   t h e   in c e p t i o n   o f   t h e   l ea s e    l e s s   ac c umul a t e d  
d e p r e c i at i o n   a n d   im p a ir m e n t   l o s s e s      l ea s e   p a y m e n t s   a r e   ac c o un t e d 
f o r   a s   s e t   o u t   in   n o t e   1  h    a b o v e 
 i i i  	 d e p r e c i a t i o n
d e p r e c i at i o n   i s   c h ar g e d   t o   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   o n   
a   s t r a i g h t lin e   b a s i s   o v e r   t h e   e s t im at e d   u s e f ul   e c o n o mi c   li v e s   o f   eac h  
p ar t   o f   a n   i t e m   o f   p r o p e r t y    p l a n t   a n d   e q uip m e n t      f r e e h o l d   l an d   i s  
n o t   d e p r e c i at e d      t h e   u s e f ul   e c o n o mi c   li v e s   a r e   a s   f o ll o w s 
f r e e h o l d   p r o p e r t i e s   up   t o   5 0   y ea r s
s h o r t   l ea s e h o l d   im p r o v e m e n t s     l ea s e   p e r i o d   o r   u s e f ul   e c o n o mi c 
li f e   i f   s h o r t e r
o w n e d   a irc r af t   up   t o   1 8   y ea r s
f in an c e   l ea s e d   a irc r af t   
a n d   e q uip m e n t     l ea s e   p e r i o d   o r   u s e f ul   e c o n o mi c  
li f e   i f   s h o r t e r
a irc r a f t   s p ar e s   1 2   y ea r s
c r ui s e   s hip s   2 0   y ea r s
y ac h t s   5  1 5   y ea r s
m o t o r   b o a t s   1 5  2 4   y ea r s
c o m p u t e r   e q uip m e n t   in c lu d in g 
r e t a il   c o m p u t e r   e q uip m e n t   3  5   y ea r s
r e t a il   fi x t ur e s   a n d   fi t t in g s   8   y ea r s
o t h e r  a s s e t s  4  y ears
t h e   c o s t   o f   m a j o r   o v e r h a ul s   o f   o w n e d   a ir f r a m e s   a n d   e n g in e s   i s 
c api t a li s e d   a n d   d e p r e c i at e d   o v e r   t h e   p e r i o d   un t il   t h e   n e x t   s c h e d ul e d 
m a j o r   o v e r h a ul     
t h e   d e p r e c i at i o n   m e t h o d s    u s e f ul   e c o n o mi c   li v e s   a n d   r e s i d u a l    
v a lu e s   a r e   r ea s s e s s e d   a nn u a ll y      r e v i s i o n s   t o   u s e f ul   e c o n o mi c   li v e s    
a n d   r e s i d u a l   v a lu e s   a r e   ac c oun t e d   f o r   p r o s p e c t i v e l y   f r o m   t h e   d a t e   
o f   c h a n g e  wwwtuitravelplccom
80  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
financial statements
notes to the consolidated financial statements c o n t i n u e d
o v e r   a   fl e e t      t h e   un w in d in g   o f   d i s c oun t e d   v a lu e s   i s   c h ar g e d   t o   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t   a s   a   fi n a n c i a l   e x p e n s e 
t h e   c o s t   o f   m a j o r   o v e r h a ul s   o f   o w n e d   a ir f r a m e s   an d   e n g in e s   i s 
c api t a li s e d   a n d   d e p r e c i at e d   o v e r   t h e   p e r i o d   un t il   t h e   n e x t   s c h e d ul e d  
m a j o r   o v e r h a ul 
 i i  	 r e s t r u c t u r i n g 	 p r o v i s i o n
a   p r o v i s i o n   f o r   r e s t r u c t ur in g   i s   r e c og ni s e d   w h e n   t h e   g r o up   
h a s   a p p r o v e d   a   d e t a il e d   a n d   f o r m a l   r e s t r u c t ur in g   p l a n    a n d   t h e 
r e s t r u c t ur in g   e i t h e r   h a s   c o m m e n c e d   o r   h a s   b e e n   a nn oun c e d   
p ub li c l y      f u t ur e   o p e r at in g   c o s t s   a r e   n o t   p r o v i d e d   f o r 
 i i i  	 o n e r o u s 	 c o n t r a c t s
a   p r o v i s i o n   f o r   o n e r o u s   c o n t r ac t s   i s   r e c og ni s e d   w h e n   t h e   e x p e c t e d 
b e n e fi t s   t o   b e   d e r i v e d   b y   t h e   g r o up   f r o m   t h e   c o n t r ac t   ar e   l o w e r   t h a n  
t h e   un a v oi d a b l e   c o s t   o f   m e e t in g   i t s   o b li g at i o n s   un d e r   t h e   c o n t r ac t     
t h e   p r o v i s i o n   i s   m ea s ur e d   at   t h e   p r e s e n t   v a lu e   o f   t h e   l o w e r   o f   t h e 
e x p e c t e d   c o s t   o f   t e r min at in g   t h e   c o n t r ac t   a n d   t h e   e x p e c t e d   n e t   c o s t 
o f   c o n t in uin g   w i t h   t h e   c o n t r ac t      b e f o r e   a   p r o v i s i o n   i s   e s t a b li s h e d    t h e  
g r o up   r e c og ni s e s   a n y   im p a ir m e n t   l o s s   o n   t h e   a s s e t s   a s s o c i at e d   w i t h 
t h at   c o n t r ac t   
u noncontrolling interests
in   t h e   c o n s o li d at e d   b al a n c e   s h e e t    t h e   s h a r e   o f   n e t   a s s e t s   at t r ib u t a b l e  
t o   n o n  c o n t r o llin g   in t e r e s t s   i s   d i s c l o s e d   a s   a   s e p ar at e   c o m p o n e n t   
o f   e q ui t y   af t e r   s h a r e   c api t a l   a n d   r e s e r v e s    a l t h o u g h   i t   i s   n e i t h e r   a  
fi n a n c i a l   li a bili t y   n o r   an   e q ui t y   in s t r um e n t      t h e   c o n s o li d at e d   in c o m e 
s t at e m e n t   d i s c l o s e s   t h e   a m oun t   o f   t h e   r e s ul t   f o r   t h e   y ea r   at t r ib u t a b l e 
t o   n o n  c o n t r o llin g   in t e r e s t s 
w h e r e   t h e   g r o up   h a s   a   w r i t t e n   p u t   o pt i o n   in   r e s p e c t   o f   a   n o n 
c o n t r o llin g   in t e r e s t   a n d   h a s   a n   un a v oi d a b l e   o b li g at i o n   t o   p urc h a s e   t h e 
s h a r e h o l d in g    t h e   n o n  c o n t r o llin g   in t e r e s t   i s   r e c o r d e d   a s   a   fi n a n c i a l  
li a bili t y   at   f a ir   v a lu e    r at h e r   t h a n   b e in g   r e p o r t e d   a s   a   s e p ar at e  
c o m p o n e n t   o f   e q ui t y      n o   r e s ul t   i s   at t r ib u t a b l e   t o   n o n  c o n t r o llin g 
in t e r e s t s   a n d   in s t ead   c h an g e s   t o   t h e   f a ir   v a lu e   o f   t h e   fi n a n c i a l   li a bili t y  
a r e   r e c o r d e d   at   eac h   p e r i o d   e n d   in   t h e   in c o m e   s t at e m e n t   w i t hin  
fi n a n c i a l   in c o m e   o r   fi n a n c i a l   e x p e n s e s 
o n   p urc h a s e   o r   s a l e   o f   a   n o n  c o n t r o llin g   in t e r e s t   h e l d   in   a   g r o up 
s ub s i d i a r y    t h e   g r o up   r e c og ni s e s   in c r ea s e s   o r   d e c r ea s e s   in   i t s   in t e r e s t 
d ir e c t l y   in   e q ui t y 
v related parties
f o r   t h e   p ur p o s e   o f   t h e s e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s    p ar t i e s  
a r e   c o n s i d er e d   t o   b e   r e l a t e d   t o   t h e   g r o up   i f   t h e   g r o up   h a s   t h e   a bili t y   
d ir e c t l y   o r   in d ir e c t l y    t o   c o n t r o l   t h e   p ar t y   o r   e x e rc i s e   s i g ni fi c an t  
in fl u e n c e   o v e r   t h e   p ar t y   m a k in g   fi n a n c i a l   a n d   o p e r at in g   d e c i s i o n s    o r 
v i c e   v e r s a    o r   w h e r e   t h e   g r o up   a n d   t h e   p ar t y   a r e   s ubj e c t   t o   c o m m o n 
c o n t r o l   o r   c o m m o n   s i g ni fi c a n t   in fl u e n c e      r e l at e d   p ar t i e s   m a y   b e 
in d i v i d u a l s   o r   o t h e r   e n t i t i e s 
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a n   o p e r at in g   s e g m e n t   i s   a   c o m p o n e n t   o f   an   e n t i t y   t h at 
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a n d   in c ur   e x p e n s e s    in c lu d in g   r e v e n u e s   a n d   e x p e n s e s   r e l a t in g   t o 
t r a n s ac t i o n s   w i t h   o t h e r   c o m p o n e n t s   o f   t h e   s a m e   e n t i t y  
b    w h o s e   o p e r at in g   r e s ul t s   a r e   r e g ul ar l y   r e v i e w e d   b y   t h e   g mb   t o  
m a k e   d e c i s i o n s   a b o u t   r e s o urc e s   t o   b e   a ll o c at e d   t o   t h e   s e g m e n t 
a n d   a s s e s s   i t s   p e r f o r m an c e    a n d
c    f o r   w hi c h   d i s c r e t e   fi n a n c i a l   in f o r m a t i o n   i s   a v a il ab l e 
a s   d e s c r ib e d   in   n o t e   2    all   un d e r l y in g   o p e r a t in g   i t e m s   a r e   a ll o c at e d    
t o   t h e   s e g m e n t ’ s   un d e r l y in g   p r o fi t   e x c e pt   c e n t r a l   c o s t s   a n d   n e t 
fi n a n c i a l   e x p e n s e s 
 i i  	 n o n  fi n a nc i a l 	 a s s e t s
t h e   c ar r y in g   a m oun t   o f   t h e   g r o up ’ s   n o n  fi n a n c i a l   a s s e t s    o t h e r 
t h a n   in v e n t o r y   a n d   d e f e r r e d   t a x   a s s e t s    a r e   r e v i e w e d   at   eac h   
b al a n c e   s h e e t   d a t e   t o   d e t e r min e   w h e t h e r   t h e r e   i s   a n y   in d i c at i o n   
o f   im p a ir m e n t      i f   s u c h   a n   in d i c at i o n   e x i s t s    t h e   a s s e t ’ s   r e c o v e r a b l e  
a m oun t   i s   e s t im at e d      f o r   g o o d w ill    t h e   r e c o v e r a b l e   a m oun t   i s 
e s t im at e d   at   eac h   b al a n c e   s h e e t   d a t e 
a n   im p a ir m e n t   l o s s   i s   r e c og ni s e d   w h e n e v e r   t h e   c ar r y in g   am ount   o f   
a n   a s s e t   o r   i t s   c a s h   g e n e r at in g   uni t   e x c e e d s   i t s   r e c o v e r a b l e   a m oun t    
t h e   r e c o v e r a b l e   a m oun t   o f   a n   a s s e t   o r   c a s h   g e n e r at in g   uni t   i s   t h e 
g r eat e r   o f   i t s   v a lu e   in   u s e   a n d   f a ir   v a lu e   l e s s   c o s t s   t o   s e ll      in   a s s e s s in g  
v a lu e   in   u s e    t h e   e s t im at e d   f u t ur e   c a s h   fl o w s   a r e   d i s c o un t e d   t o   t h e ir 
p r e s e n t   v a lu e   u s in g   a   p r e  t a x   d i s c oun t   r at e   t h at   r e fl e c t s   c ur r e n t  
m a r k e t   a s s e s s m e n t s   o f   t h e   t im e   v a lu e   o f   m o n e y   a n d   t h e   r i s k s   s p e c i fi c  
t o   t h e   a s s e t      a   c a s h   g e n e r at in g   uni t   i s   t h e   s m a ll e s t   i d en t i fi ab l e   g r o up 
o f   a s s e t s   t h at   g e n e r at e s   c a s h   in fl o w s   t h at   a r e   l ar g e l y   in d e p e n d e n t   o f   
t h e   c a s h   in fl o w s   f r o m   o t h e r   a s s e t s   o r   g r o up s   o f   a s s e t s 
im p a ir m e n t   l o s s e s   a r e   r e c og ni s e d   in   p r o fi t   o r   l o s s      im p a ir m e n t   l o s s e s  
r e c og ni s e d   in   r e s p e c t   o f   c a s h   g e n e r at in g   uni t s   ar e   a ll o c at e d   fi r s t   t o  
r e d u c e   t h e   c ar r y in g   a m oun t   o f   g o o d w ill   a ll o c at e d   t o   t h e   c a s h 
g e n e r at in g   uni t   a n d   t h e n   t o   r e d u c e   t h e   c ar r y in g   a m oun t   o f   o t h e r 
a s s e t s   in   t h e   uni t   o n   a   p r o   r at a   b a s i s   
a n   im p a ir m e n t   l o s s   in   r e s p e c t   o f   g o o d w ill   i s   n o t   r e v e r s e d      in   r e s p e c t  
o f   o t h e r   a s s e t s    im p a ir m e n t   l o s s e s   r e c og ni s e d   in   p r i o r   p e r i o d s   a r e 
a s s e s s e d   at   eac h   r e p o r t in g   d a t e   f o r   a n y   in d i c a t i o n s   t h at   t h e   l o s s   h a s 
d e c r ea s e d   o r   n o   l o n g e r   e x i s t s      a n   im p a ir m e n t   l o s s   i s   r e v e r s e d   i f   t h e r e 
h a s   b e e n   a   c h an g e   in   t h e   e s t im at e s   u s e d   t o   d e t e r min e   t h e   r e c o v e r a b l e 
a m oun t      a n   im p a ir m e n t   l o s s   i s   r e v e r s e d   o nl y   t o   t h e   e x t e n t   t h at   t h e 
a s s e t ’ s   c ar r y in g   am oun t   d o e s   n o t   e x c e e d   t h e   c ar r y in g   a m oun t   t h at 
w o ul d   h a v e   b e e n   d e t e r min e d    n e t   o f   d e p r e c i at i o n   o r   am o r t i s a t i o n    i f  
n o   im p a ir m e n t   l o s s   h ad   b e e n   r e c og ni s e d 
s inventories
in v e n t o r i e s   a r e   m ea s ur e d   at   t h e   l o w e r   o f   c o s t   o r   n e t   r ea li s a b l e   v a lu e     
n e t   r ea li s a b l e   v a lu e   i s   t h e   e s t im at e d   s e llin g   p r i c e   l e s s   t h e   e s t im at e d  
c o s t s   in c ur r e d   un t il   t h e   s a l e   a n d   t h e   e s t im at e d   v a r i a b l e   c o s t s   r e q uir e d 
t o   s e ll      a ll   in v e n t o r i e s   a r e   w r i t t e n   d o w n   in d i v i d u a ll y   w h e r e   t h e   n e t 
r ea li s a b l e   v a lu e   o f   in v e n t o r i e s   i s   l o w e r   t h a n   t h e ir   c ar r y in g   a m o un t s     
t h e   m ea s ur em e n t   m e t h o d   a p p li e d   t o   s imil a r   in v e n t o r y   i t e m s   i s   t h e 
w e i g h t e d   a v e r a g e   c o s t   f o r mul a 
t provisions
a   p r o v i s i o n   i s   r e c og ni s e d   in   t h e   c o n s o li d at e d   b al a n c e   s h e e t   w h e n   t h e 
g r o up   h a s   a   l e g a l   o r   c o n s t r u c t i v e   o b li g at i o n   a s   a   r e s ul t   o f   a   p a s t   e v e n t  
i t   i s   p r o b ab l e   t h at   a n   o u t fl o w   o f   e c o n o mi c   b e n e fi t s   w ill   b e   r e q uir e d   t o 
s e t t l e   t h e   o b li g at i o n   a n d   t h e   o u t fl o w   o f   e c o n o mi c   b e n e fi t s   c an   b e 
r e li a b l y   e s t im at e d      i f   t h e   e f f e c t   i s   m a t e r i al    p r o v i s i o n s   ar e   d e t e r min e d 
b y   d i s c o un t in g   t h e   e x p e c t e d   f u t ur e   c a s h   fl o w s   at   a   p r e  t a x   r at e   t h at 
r e fl e c t s   c ur r e n t   m a r k e t   a s s e s s m e n t s   o f   t h e   t im e   v a lu e   o f   m o n e y   a n d  
t h e   r i s k s   s p e c i fi c   t o   t h e   li a bili t y 
 i  	 m a i n te n a nc e 	 p r o v i s i o n 	 f o r 	 l e a s e d 	 a i r c r a f t
t o   r e fl e c t   t h e   l e g a l   o b li g at i o n s   p l ac e d   up o n   t h e   g r o up   un d e r    
t h e   t e r m s   o f   c e r t a in   o p e r at in g   l ea s e s    p r o v i s i o n   i s   m ad e   f o r   t h e 
m a in t e n a n c e    o v e r h a ul   a n d   r e p a ir   c o s t s   o f   o p e r a t in g   l ea s e d   a ir f r a m e s   
e n g in e s   an d   c e r t a in   o t h e r   c o m p o n e n t s      t h e   p r o v i s i o n   i s   b a s e d   o n   
t h e   p r e s e n t   v a lu e   o f   t o t a l   a n t i c ip at e d   e x t e r n a l   c o s t s   o v e r   t h e   u s e f ul 
e c o n o mi c   li f e   o f   t h e   a s s e t   c al c ul a t e d   b y   r e f e r e n c e   t o   c o s t s 
e x p e r i e n c e d   a n d   p ub li s h e d   m a n u f ac t ur e r s ’   d a t a      t h e   c h ar g e   t o   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t   i s   c al c ul a t e d   b y   r e f e r e n c e   t o   t h e 
n um b e r   o f   h o ur s   a n d   c y c l e s   fl o w n   a n d   b y   r e f e r e n c e   t o   t h e   l e n g t h    
o f   t h e   f ull   o v e r h a ul   c y c l e      c o s t s   in c ur r e d   a r e   c h a r g e d   a g a in s t   t h e 
p r o v i s i o n      n e i t h e r   t h e   t imin g   n o r   t h e   v a lu e   o f   t h e   e x p e n d i t ur e   c an   
b e   p r e c i s e l y   d e t e r min e d   b u t   t h e y   c an   b e   a v e r a g e d   o v e r   t im e   a n d    wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
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 v  	 t r ad e 	 a n d 	 o t h e r 	 r e c e i v a b l e s
t r ad e   r e c e i v ab l e s   ar e   r e c og ni s e d   at   t h e ir   f a ir   v a lu e   an d   s ub s e q u e n t l y 
r e c o r d e d   at   am o r t i s e d   c o s t   u s in g   t h e   e f f e c t i v e   in t e r e s t   m e t h o d   
a s   r e d u c e d   b y   a ll o w an c e s   f o r   e s t im at e d   ir r e c o v e r a b l e   am ount s      
a n   a ll o w an c e   f o r   ir r e c o v e r a b l e   a m oun t s   i s   e s t a b li s h e d   w h e n   t h e r e    
i s   o bj e c t i v e   e v i d e n c e   t h at   t h e   g r o up   w ill   n o t   b e   a b l e   t o   c o ll e c t   a ll 
a m oun t s   d u e   ac c o r d in g   t o   t h e   o r i g in al   t e r m s   o f   t h e   r e c e i v ab l e s       
t h e   a m oun t   o f   a ll o w an c e   i s   t h e   d i f f e r e n c e   b e t w e e n   t h e   a s s e t ’ s 
c a r r y i n g   a m o u n t   a n d   t h e   p r e s e n t   v a l u e   o f   e s t i m a t e d   f u t u r e   c a s h   fl o w s 
 v i  	 t r ad e 	 p a y a b l e s
t r ad e   p a y ab l e s   ar e   r e c og ni s e d   at   t h e ir   f a ir   v a lu e   a n d   s ub s e q u e n t l y 
r e c o r d e d   at   am o r t i s e d   c o s t   u s in g   t h e   e f f e c t i v e   in t e r e s t   m e t h o d 
 v i i  	 d e r i v a t i v e s
t h e   f a ir   v a lu e   o f   f o r e i g n   c ur r e n c y   c o n t r ac t s    f u e l   f o r w ar d   c o n t r ac t s  
a n d   o pt i o n   c o n t r ac t s   i s   t h e ir   f o r w ar d   m a r k e t   p r i c e   at   t h e   b al a n c e 
s h e e t   d a t e    b a s e d   o n   e x t e r n a l   v a lu at i o n s   o r   in t e r n a l   v a lu at i o n s   u s in g 
m a r k e t   d a t a   
 v i i i  	 n o n  d e r i v a t i v e 	 fi n a nc i a l 	 l i a b i l i t i e s
fa ir   v a lu e    w hi c h   i s   d e t e r min e d   f o r   d i s c l o s ur e   p ur p o s e s    i s   c al c ul a t e d  
b a s e d   o n   t h e   p r e s e n t   v a lu e   o f   f u t ur e   p r in c ip al   a n d   in t e r e s t   c a s h    
fl o w s    d i s c oun t e d   at   t h e   m a r k e t   r at e   o f   in t e r e s t   at   t h e   r e p o r t in g   d a t e     
f o r   fi n a n c e   l ea s e s   t h e   m a r k e t   r at e   o f   in t e r e s t   i s   d e t e r min e d   b y 
r e f e r e n c e   t o   s imil a r   l ea s e   a g r e e m e n t s 
 i x  	 s h a r e  b a s e d 	 p a y m e n t s
t h e   f a ir   v a lu e   o f   t h e   s h a r e s   a w a r d e d   i s   m ea s ur e d   u s in g   o pt i o n 
v a lu at i o n   m o d e l s    t a k in g   in t o   ac c ount   t h e   t e r m s   a n d   c o n d i t i o n s   up o n 
w hi c h   t h e   a w a r d s   w e r e   m ad e      t h e   v a lu at i o n   b a s i s   i s   i d e n t i c a l   w h e t h e r 
t h e   a w a r d s   w ill   b e   s e t t l e d   in   c a s h   o r   s h a r e s 
z new standards and interpretations not yet adopted
t h e   f o ll o w in g   s t a n d ar d s   w hi c h   a r e   a p p li c a b l e   t o   t h e   g r o up   h a v e    
b e e n   e n d o r s e d   b y   t h e   e ur o p ean   uni o n   a n d   a r e   e f f e c t i v e   f o r   t h e   
y ea r   e n d in g   3 0   s e pt e m b e r   2 0 1 1      t h e y   a r e   n o t   e x p e c t e d   t o   h a v e   a  
s i g ni fi c a n t   im p ac t   o n   t h e   g r o up ’ s   fi n a n c i a l   s t at e m e n t s   in   f u t ur e   y ea r s   
i a s   1   p r e s e n t at i o n   o f   f in an c i a l   s t a t e m e n t s   h a s   b e e n   a m e n d e d   t o 
s t at e   t h at   t h e   c l a s s i fi c at i o n   o f   t h e   li a bili t y   c o m p o n e n t   o f   a   c o n v e r t ib l e  
in s t r um e n t   a s   c ur r e n t   o r   n o n  c ur r e n t   i s   n o t   a f f e c t e d   b y   t e r m s   t h at    
at   t h e   o pt i o n   o f   t h e   h o l d e r    r e s ul t   in   s e t t l e m e n t   o f   t h e   li a bili t y   t hr o u g h  
i s s u e   o f   e q ui t y   in s t r um e n t s 
i a s   7   s t a t e m e n t   o f   c a s h   fl o w s   h a s   b e e n   am e n d e d   t o   s t at e   e x p li c i t l y 
t h at   o nl y   e x p e n d i t ur e   t h at   r e s ul t s   ini t i a ll y   in   t h e   r e c og ni t i o n   o f   a n  
a s s e t   m a y   b e   c l a s s i fi e d   a s   a   c a s h   fl o w   f r o m   in v e s t in g   ac t i v i t i e s 
p ar a g r ap h   1 4   o f   i a s   1 7   l ea s e s   h a s   b e e n   d e l e t e d   s u c h   t h at   a   l ea s e   
o f   l an d   w i t h   a n   in d e fi ni t e   e c o n o mi c   li f e   n e e d   n o t   b e   c l a s s i fi e d   a s   an 
o p e r at in g   l ea s e      a   l an d   l ea s e   w i t h   a   l ea s e   t e r m   o f   s e v e r a l   d e c ad e s   o r 
l o n g e r   m a y   b e   c l a s s i fi e d   a s   a   fi n a n c e   l ea s e    e v e n   i f   at   t h e   e n d   o f   t h e 
l ea s e   t e r m   t i t l e   d o e s   n o t   p a s s   t o   t h e   l e s s e e      w h e n   a   l ea s e   in c lu d e s  
b o t h   l an d   a n d   b uil d in g s    c l a s s i fi c at i o n   o f   eac h   e l e m e n t   o f   t h e   l ea s e    
w ill   t a k e   ac c oun t   o f   t h e   f ac t   t h at   l an d   n o r m a ll y   h a s   a n   in d e fi ni t e  
e c o n o mi c   li f e 
t h e   a p p e n d i x   o f   i a s   1 8   r e v e n u e   h a s   b e e n   a m e n d e d   t o   s p e c i f y   t h at   a n 
e n t i t y   ac t s   a s   p r in c ip al   w h e n   e x p o s e d   t o   s i g ni fi c a n t   r i s k s   a n d   r e w a r d s  
a s s o c i at e d   w i t h   s a l e   o f   g o o d s   o r   r e n d e r in g   o f   s e r v i c e s      f ur t h e r  
in d i c a t o r s   h a v e   b e e n   ad d e d   t o   t h e   a p p e n d i x   t o   a s s i s t   in   a s s e s s in g  
w h e t h e r   a n   e n t i t y   i s   p r in c ip al   o r   a g e n t 
t h e   g r o up   h a s   d e c i d e d   t o   ad o pt   ea r l y   a n   a m e n dm e n t   t o   if r s   8  
o p e r at in g   s e g m e n t s   w hi c h   s t at e s   t h at   s e g m e n t   in f o r m a t i o n   f o r   t o t a l 
a s s e t s   i s   o nl y   r e q uir e d   i f   s u c h   in f o r m a t i o n   i s   r e g ul ar l y   r e p o r t e d   t o   t h e 
c hi e f   o p e r at in g   d e c i s i o n  m a k e r 
x use of estimates
t h e   p r e p ar at i o n   o f   fi n a n c i a l   s t at e m e n t s   r e q uir e s   m a n a g e m e n t   
t o   m a k e   j u d g e m e n t s    e s t im at e s   a n d   a s s um p t i o n s   t h at   a f f e c t   t h e 
ap p li c at i o n   o f   ac c o un t in g   p o li c i e s   a n d   t h e   r e p o r t e d   a m oun t s   o f   
a s s e t s    li a bili t i e s    in c o m e   a n d   e x p e n s e s      a c t u a l   r e s ul t s   m a y   d i f f e r    
f r o m   t h e s e   e s t im at e s 
e s t im a t e s   a n d   un d e r l y in g   a s s um p t i o n s   a r e   r e v i e w e d   o n   a n   o n g oin g 
b a s i s      r e v i s i o n s   t o   ac c oun t in g   e s t im at e s   a r e   r e c og ni s e d   in   t h e   p e r i o d 
in   w hi c h   t h e   e s t im at e s   a r e   r e v i s e d   a n d   in   a n y   f u t ur e   p e r i o d s   af f e c t e d    
d e t a il s   o f   c r i t i c a l   j u d g e m e n t s    s i g ni fi c an t   e s t im at e s   a n d   a s s um p t i o n s 
ar e   d i s c l o s e d   in   t h e   r e l e v an t   n o t e s   t o   t h e   c o n s o li d at e d   fi n a n c i a l  
s t at e m e n t s      t h e   k e y   ac c o un t in g   e s t im at e s   a n d   j u d g e m e n t s   ar e 
d e s c r ib e d   in   n o t e   3 1 
y determination of fair values
a   n um b e r   o f   t h e   g r o up ’ s   ac c o un t in g   p o li c i e s   a n d   d i s c l o s ur e s   r e q uir e 
t h e   d e t e r min a t i o n   o f   f a ir   v a lu e    f o r   b o t h   fi n a n c i a l   a n d   n o n  fi n a n c i a l  
a s s e t s   a n d   li a bili t i e s      fa ir   v a lu e s   h a v e   b e e n   d e t e r min e d   f o r 
m ea s ur em e n t   a n d  o r   d i s c l o s ur e   p ur p o s e s   b a s e d   o n   t h e   f o ll o w in g 
m e t h o d s      w h e n   a p p li c a b l e    f ur t h e r   in f o r m a t i o n   a b o u t   t h e 
a s s um p t i o n s   m ad e   in   d e t e r minin g   f a ir   v a lu e s   i s   d i s c l o s e d   in   t h e   
n o t e s   s p e c i fi c   t o   t h at   a s s e t   o r   li a bili t y 
 i  	 p r o p e r t y  	 p l a n t 	 a n d 	 e q u i p m e n t
t h e   f a ir   v a lu e   o f   p r o p e r t y    p l a n t   a n d   e q uip m e n t   r e c og ni s e d   a s   a    
r e s ul t   o f   a   b u s in e s s   c o m bin at i o n   i s   b a s e d   o n   m a r k e t   v a lu e s      t h e 
m a r k e t   v a lu e   o f   p r o p e r t y   i s   t h e   e s t im at e d   a m oun t   f o r   w hi c h   a  
p r o p e r t y   c o ul d   b e   e x c h an g e d   o n   t h e   d a t e   o f   v a lu at i o n   b e t w e e n   a  
w illin g   b u y e r   a n d   a   w illin g   s e ll e r   in   a n   a r m ’ s   l e n g t h   t r a n s ac t i o n   a f t e r 
p r o p e r   m a r k e t in g   w h e r e in   t h e   p ar t i e s   h ad   eac h   ac t e d   k n o w l e d g eab l y  
p r u d e n t l y   a n d   w i t h ou t   c o m p ul s i o n      t h e   m a r k e t   v a lu e   o f   i t e m s   o f 
p l a n t    e q uip m e n t    fi x t ur e s   a n d   fi t t in g s   i s   b a s e d   o n   t h e   q u o t e d   m a r k e t  
p r i c e s   f o r   s imil a r   i t e m s 
 i i  	 i n t a n g i b l e 	 a s s e t s
t h e   f a ir   v a lu e   o f   in t a n g ib l e   a s s e t s   r e c og ni s e d   a s   a   r e s ul t   o f   a   b u s in e s s  
c o m bin at i o n    in c lu d in g   b r an d s    c u s t o m e r   r e l a t i o n s hip s   an d   t h e 
c u s t o m e r   o r d e r   b o o k   at   t h e   d a t e   o f   ac q ui s i t i o n    i s   v a lu e d   b y   r e f e r e n c e 
t o   e x t e r n a l   m a r k e t   v a lu e s   o r   in c o m e  b a s e d   m e t h o d s      in c o m e  b a s e d  
m e t h o d s   e s t im at e   t h e   f u t ur e   e c o n o mi c   b e n e fi t s   t o   b e   d e r i v e d   f r o m  
o w n e r s hip   o f   t h e   a s s e t   b y   i d e n t i f y in g    q u an t i f y in g   a n d   s e p ar at in g   c a s h  
fl o w s   at t r ib u t a b l e   t o   t h e   a s s e t   a n d   c api t a li s in g   t h e ir   p r e s e n t   v a lu e 
 i i i  	 i n v e n t o r i e s
t h e   f a ir   v a lu e   o f   in v e n t o r i e s   ac q uir e d   in   a   b u s in e s s   c o m bin at i o n   i s 
d e t e r min e d   b a s e d   o n   t h e   e s t im at e d   s e llin g   p r i c e   in   t h e   o r d in ar y  
c o ur s e   o f   b u s in e s s    l e s s   t h e   e s t im at e d   c o s t s   o f   c o m p l e t i o n   a n d   s a l e  
an d   a   r ea s o n ab l e   p r o fi t   m a r g in   b a s e d   o n   t h e   e f f o r t   r e q uir e d   t o  
c o m p l e t e   a n d   s e ll   t h e   in v e n t o r i e s  
 i v  	 i n v e s t m e n t s 	 i n 	 e q u i t y 	 a n d 	 d e b t 	 s e c u r i t i e s
t h e   f a ir   v a lu e   o f   fi n a n c i a l   a s s e t s   at   f a ir   v a lu e   t hr o u g h   p r o fi t   o r   l o s s  
an d   a v a il ab l e   f o r   s a l e   fi n a n c i a l   a s s e t s   i s   d e t e r min e d   b y   r e f e r e n c e   t o 
t h e ir   q u o t e d   c l o s in g   bi d   p r i c e   at   t h e   r e p o r t in g   d a t e    w h e r e   a v a il ab l e       
i f   t h e r e   i s   n o   m a r k e t   p r i c e   a v a il ab l e   t h e   f a ir   v a lu e   i s   c al c ul a t e d   b a s e d 
o n   o t h e r   v a lu at i o n   t e c hni q u e s    in c lu d in g   a s s e s s m e n t s   o f   f u t ur e   
c a s h   fl o w s    e s t im at e d   s e llin g   p r i c e   an d   o t h e r   a v a il ab l e   in f o r m a t i o n     
t h e   f a ir   v a lu e   o f   h e l d   t o   m a t ur i t y   in v e s t m e n t s   i s   d e t e r min e d   o n   
ini t i a l   r e c og ni t i o n   an d   t h e r eaf t e r   f o r   d i s c l o s ur e   p ur p o s e s   o nl y  wwwtuitravelplccom
82  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
b e t w e e n   c e n t r al   e ur o p e    n o r t h e r n   r e g i o n   a n d   w e s t e r n   e ur o p e   
s p e c i a li s t   an d   e m e r g in g   m a r k e t s    a c t i v i t y   a n d   a c c o m m o d a t i o n     
d e s t in a t i o n s   s e c t o r s      un d e r   if r s   8    t h e   r e s ul t s   o f   g e r m an y    t h e   u k  
   ir e l a n d   a n d   c an ad a   a r e   s h o w n   s e p ar at e l y   f r o m   c e n t r al   e ur o p e   a n d 
n o r t h e r n   r e g i o n   r e s p e c t i v e l y   a s   t h e s e   m e e t   t h e   t hr e s h o l d   o f   b e in g 
in d i v i d u a l   r e p o r t a b l e   s e g m e n t s      t h e   f r e n c h   a ir lin e    c o r s a ir    h a s   b e e n 
s e p ar at e l y   d i s c l o s e d   f r o m   t h e   r e s t   o f   w e s t e r n   e ur o p e   a s   i t   i s   t h e   o nl y  
s c h e d ul e d   a ir lin e   c o n s o li d at e d   w i t hin   t h e   g r o up   a n d   t h e r e f o r e   h a s   
a   d i f f e r e n t   b u s in e s s   m o d e l   t o   t h e   r e s t   o f   t h e   g r o up ’ s   in t e g r at e d    
t o ur   o p e r at o r s      a   m o r e   d e t a il e d   e x p l an at i o n   o f   eac h   s e g m e n t   i s 
in c lu d e d   in   t h e   b u s in e s s   p e r f o r m an c e   s e c t i o n   o f   t h e   a nn u a l   r e p o r t    
   a c c o un t s      c o m p a r at i v e   in f o r m a t i o n   h a s   a l s o   b e e n   r e s t at e d   t o 
r e fl e c t   t h e s e   n e w   s e g m e n t s   
c e r t a in   g r o up   o p e r at in g   s e g m e n t s   h a v e   b e e n   a g g r e g a t e d   in t o 
r e p o r t a b l e   s e g m e n t s   w h e r e   t h e ir   ac t i v i t i e s   ar e   c o n s i d e r e d   t o   b e 
s u f fi c i e n t l y   s imil a r   in   n at ur e   un d e r   t h e   a g g r e g a t i o n   c r i t e r i a   o f   if r s   8  
t h e   r e s ul t s   o f   n o r d i c s   f o r m   t h e   r e s t   o f   n o r t h e r n   r e g i o n    sw i t z e r l a n d  
a u s t r i a   a n d   p o l an d   f o r m   t h e   r e s t   o f   c e n t r a l   e ur o p e    an d   b e l g i um    t h e 
n e t h e r l an d s   a n d   t h e   f r e n c h   t o ur   o p e r at in g   b u s in e s s e s   f o r m   t h e   r e s t  
o f   w e s t e r n   e ur o p e 
c e n t r al   c o s t s   c o m p r i s e   fi n a n c e    h um an   r e s o urc e s    l e g al    f ac ili t y   c o s t s  
a n d   s o m e   in f o r m a t i o n   t e c hn o l og y   c o s t s   t h at   d o   n o t   r e l a t e   t o   eac h  
b u s in e s s   s e g m e n t    a n d   h e n c e   t h e y   a r e   n o t   a ll o c at e d    an d   a r e 
c l a s s i fi e d   w i t hin   a ll   o t h e r   s e g m e n t s 
in f o r m a t i o n   r e g a r d in g   t h e   r e s ul t s   o f   eac h   r e p o r t a b l e   s e g m e n t   i s 
p r o v i d e d   b e l o w    s e g m e n t al   p e r f o r m an c e   i s   e v a lu at e d   b a s e d   o n  
un d e r l y in g   o p e r at in g   p r o fi t   a n d   i s   m ea s ur e d   c o n s i s t e n t l y   w i t h  
un d e r l y in g   o p e r at in g   p r o fi t   o r   l o s s   in   t h e   c o n s o li d at e d   fi n a n c i a l 
s t at e m e n t s   a n d   a s   d e fi n e d   in   n o t e   1  b   i v       t h e   g mb   r e v i e w s 
r e v e n u e s   an d   un d e r l y in g   o p e r at in g   p r o fi t   b e f o r e   t h e   im p ac t   o f   t h e 
v o l c an o      c o n s e q u e n t l y    t h e   s e g m e n t a l   r e s ul t s   ar e   s h o w n   o n   a   p r e 
v o l c an o   b a s i s   a s   d e fi n e d   in   n o t e   1  b   i ii    a n d   r e c o n c il e d   b ac k   t o   t h e 
s t at u t o r y   r e s ul t      t h e   g r o up  w i d e   d i s c l o s ur e s   r e fl e c t   t h e   s t at u t o r y 
r e v e n u e s   an d   n o n  c ur r e n t   a s s e t s   fi g ur e s 
in t e r  s e g m e n t   s a l e s   a n d   t r a n s f e r s   r e fl e c t   a r m ’ s   l e n g t h   p r i c e s   a s   i f   s o l d 
o r   t r a n s f e r r e d   t o   t hir d   p ar t i e s      f in an c i al   in c o m e   a n d   e x p e n s e s   a r e   n o t  
a ll o c at e d   t o   t h e   r e p o r t a b l e   s e g m e n t s   a s   t hi s   ac t i v i t y   i s   m a n a g e d   b y 
t h e   g r o up ’ s   t r ea s ur y   f un c t i o n   w hi c h   m a n a g e s   t h e   o v e r a ll   n e t   d e b t 
p o s i t i o n   o f   t h e   g r o up 
n o   o n e   c u s t o m e r   e x c e e d s   1 0    o f   e n t i t y   r e v e n u e s   in   a n y   s e g m e n t  
im p a ir m e n t   l o s s e s   a r i s in g   in   t h e   p e r i o d   r e l a t e   t o   s p e c i a li s t   s e g m e n t s 
w hi c h   a r e   f ur t h e r   d e t a il e d   in   n o t e   1 0      a ll   im p a ir m e n t   l o s s e s   h a v e 
b e e n   r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
s e g m e n t   a s s e t s   c o m p r i s e   c api t a l   e x p e n d i t ur e    a s   t hi s   i s   t h e   o nl y 
m ea s ur e   o f   a s s e t s   r e p o r t e d   t o   t h e   g mb    an d   r e p r e s e n t   t h e   a m oun t s 
p urc h a s e d   in   t h e   y ea r      c api t a l   e x p e n d i t ur e   i s   m ea s ur e d   w i t hin   t h e  
g r o up   a s   n o n  b u s in e s s   c o m bin at i o n  r e l at e d   ad d i t i o n s   o f   in t a n g ib l e s  
a n d   p r o p e r t y    p l a n t   a n d   e q uip m e n t 
n o t e   t h at   w i t h   e f f e c t   f r o m   1   o c t o b e r   2 0 1 0    t h e   g r o up   h a s 
r e o r g a ni s e d   i t s   b u s in e s s   s e c t o r s      t h e   m a in s t r ea m   s e c t o r   r e m a in s 
un c h an g e d   in   t e r m s   o f   o p e r at in g   s e g m e n t s      t h e   r e m a inin g   s e c t o r s  
h a v e   b e e n   r e fi n e d   an d   r e n a m e d   t o   r e fl e c t   t h e   s t r at e g i c   p r i o r i t i e s   o f 
t u i   t r a v e l   a s   i t   d e v e l o p s      t h e   t hr e e   r e m a inin g   s e c t o r s   a r e   n o w   c all e d  
a c c o m m o d a t i o n      d e s t in a t i o n s    s p e c i a li s t      a c t i v i t y   a n d   e m e r g in g  
m a r k e t s      s e g m e n t al   in f o r m a t i o n   w ill   b e   p r e s e n t e d   u s in g   t hi s   n e w 
s t r u c t ur e   t hr o u g h ou t   t h e   f o r t h c o min g   fi n a n c i a l   y ea r   e n d in g    
3 0   s e pt e m b e r   2 0 1 1 
a m e n dm e n t   t o   i a s   3 2   c l a s s i fi c a t i o n   o f   r i g h t s   i s s u e s   r e q uir e s   t h at 
r i g h t s    o pt i o n s   o r   w a r r a n t s   t o   ac q uir e   a   fi x e d   n um b e r   o f   t h e   e n t i t y ’ s  
o w n   e q ui t y   in s t r um e n t s   f o r   a   fi x e d   a m oun t   o f   c ur r e n c y   ar e   e q ui t y  
in s t r um e n t s   i f   t h e   e n t i t y   o f f e r s   t h e   r i g h t s    o pt i o n s   o r   w a r r a n t s   p r o 
r at a   t o   a ll   o f   i t s   e x i s t in g   o w n e r s   o f   t h e   s a m e   c l a s s   o f   i t s   o w n   n o n 
d e r i v a t i v e   e q ui t y   in s t r um e n t s 
i a s   3 6   im p a ir m e n t   o f   a s s e t s   h a s   b e e n   a m e n d e d   t o   s t at e   t h at   t h e 
l ar g e s t   uni t   t o   w hi c h   g o o d w ill   i s   a ll o c at e d   i s   o p e r a t in g   s e g m e n t   l e v e l    
a s   d e fi n e d   in   if r s   8   b e f o r e   a p p l y in g   a g g r e g at i o n   c r i t e r i a   o f   if r s   8  1 2 
i a s   3 8   int an g ib l e   a s s e t s   –   m ea s ur in g   t h e   f a ir   v a lu e   o f   a n   in t a n g ib l e 
a s s e t   ac q uir e d   in   a   b u s in e s s   c o m bin at i o n   h a s   b e e n   a m e n d e d   t o   c l ar i f y 
t h e   d e s c r ip t i o n   o f   v a lu at i o n   t e c hni q u e s   c o m m o nl y   u s e d   t o   m ea s ur e  
f a ir   v a lu e   o f   in t a n g ib l e   a s s e t s   ac q uir e d   in   a   b u s in e s s   c o m bin at i o n   f o r 
w hi c h   n o   ac t i v e   m a r k e t   e x i s t s 
i a s   3 9   f in an c i a l   in s t r um e n t s    r e c og ni t i o n   a n d   m ea s ur e m e n t   h a s   b e e n 
a m e n d e d   s o   t h at 
i    w h e r e   t h e   e x e rc i s e   p r i c e   o f   a n   e m b e d d e d   p r e p a y m e n t   o pt i o n 
r e im b ur s e s   t h e   l e n d e r   f o r   a n   a m oun t   up   t o   t h e   a p p r o x im at e  
p r e s e n t   v a lu e   o f   t h e   l o s t   in t e r e s t   f o r   t h e   r e m a inin g   t e r m   o f   t h e  
h o s t   c o n t r ac t    t h e n   t h e   e m b e d d e d   p r e p a y m e n t   o pt i o n   i s   c l o s e l y  
r e l a t e d   t o   t h e   h o s t   c o n t r ac t   a n d   t h e   e m b e d d e d   d e r i v a t i v e   i s   
n o t   s e p ar at e d 
i i    t h e   s c o p e   e x e m pt i o n   in   p ar a g r a p h   2  g    i s   n o w   r e s t r i c t e d   t o 
f o r w ar d   c o n t r ac t s   b e t w e e n   b u y e r   a n d   s e ll e r   t o   b u y   o r   s e ll   a n 
ac q uir e e   at   a   f u t ur e   d a t e    i  e    c o n t r ac t   t h at   w ill   r e s ul t   in   a   b u s in e s s  
c o m bin at i o n   at   a   f u t ur e   d a t e   
i ii    g a in s   o r   l o s s e s   o n   a   h e d g e d   in s t r um e n t   s h o ul d   b e   r e c l a s s i fi e d   f r o m 
e q ui t y   t o   p r o fi t   o r   l o s s   d ur in g   t h e   p e r i o d   t h at   t h e   h e d g e d   f o r e c a s t  
c a s h   fl o w s   af f e c t   p r o fi t   o r   l o s s 
if r ic   1 7   d i s t r ib u t i o n   o f   n o n  c a s h   a s s e t s   t o   o w n e r s   p r o v i d e s   g ui d an c e  
o n   ac c o un t in g   f o r   a r r an g e m e n t s   w h e r e b y   a n   e n t i t y   d i s t r ib u t e s   n o n 
c a s h   a s s e t s   t o   s h a r e h o l d e r s   e i t h e r   a s   a   d i s t r ib u t i o n   o f   r e s e r v e s   o r   
a s   d i v i d e n d s   
if r ic   1 8   t r a n s f e r   o f   a s s e t s   f r o m   c u s t o m e r s   d ea l s   w i t h   t h e   ac c o un t in g 
f o r   c o n t r ib u t e d   p r o p e r t y    p l a n t   a n d   e q uip m e n t   b y   t h e   e n t i t y   r e c e i v in g  
t h e   c o n t r ib u t i o n 
if r ic   1 9   –   e x t in g ui s hin g   fi n a n c i a l   li a bili t i e s   w i t h   e q ui t y   in s t r um e n t s  
d eal s   w i t h   h o w   e n t i t i e s   s h o ul d   m ea s ur e   e q ui t y   in s t r um e n t s   i s s u e d   in    
a   d e b t   f o r   e q ui t y   s w a p 
t h e   g r o up   c o n t in u e s   t o   m o ni t o r   t h e   p o t e n t i a l   im p ac t   o f   o t h e r    
n e w   s t a n d ar d s   an d   in t e r p r e t at i o n s   w hi c h   m a y   b e   e n d o r s e d   b y   t h e 
e ur o p ean   uni o n   an d   r e q uir e   ad o pt i o n   b y   t h e   g r o up   in   f u t ur e  
ac c o un t in g   p e r i o d s   
2 segmental information
t h e   g r o up   h a s   ad o pt e d   if r s   8   o p e r at in g   s e g m e n t s   f o r   t h e   fi r s t   t im e 
in   t h e   y ea r      if r s   8   r e q uir e s   s e g m e n t   in f o r m a t i o n   t o   b e   p r e s e n t e d   o n 
t h e   s a m e   b a s i s   a s   t h at   u s e d   f o r   in t e r n a l   m a n a g e m e n t   r e p o r t in g  
s e g m e n t al   in f o r m a t i o n   i s   r e p o r t e d   b y   t h e   g r o up ’ s   b u s in e s s   s e c t o r s   t o 
t h e   g mb      t h e   g mb   c o n s i s t s   o f   t o ur   o p e r at in g   a n d   f un c t i o n a l   e x p e r t s 
dr a w n   f r o m   ac r o s s   t h e   g r o up   t h at   e x e c u t e s   t u i   t r a v e l   p l c ’ s   d a y  t o 
d a y   o p e r at i o n s   a n d   a ll o c at e s   r e s o urc e s   t o    a n d   a s s e s s e s   t h e  
p e r f o r m an c e    o f   t h e   o p e r at in g   s e g m e n t s    c o n s e q u e n t l y    t h e   g mb   i s 
c o n s i d er e d   t o   b e   t h e   c hi e f   o p e r a t in g   d e c i s i o n   m a k e r 
t h e   g r o up   p r e s e n t s   s e g m e n t   in f o r m a t i o n   in   r e s p e c t   o f   i t s   b u s in e s s  
s e g m e n t s      o n   t h e   ad o pt i o n   o f   if r s   8    t h e   g r o up   h a s   d e t e r min e d   n e w  
s e g m e n t s   in   lin e   w i t h   t h e   r e q uir e m e n t s   o f   t hi s   s t a n d ar d      t h e   g r o up ’ s  
o p e r at in g   s e g m e n t s   w e r e   p r e v i o u s l y   d e fi n e d   a s   m a in s t r ea m    s p li t  
financial statements
notes to the consolidated financial statements c o n t i n u e d wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  83
y e a r 	 e n d e d 	 3 0 	 s e p te m b e r 	 2 0 1 0
	 	 	 	 u n d e r l y i n g
	 	 	 	 o p e r a t i n g 	 g r o u p ’ s 	 s h a r e
	 	 	 	 	 p r o fi t   l o s s  	 o f 	 u n d e r l y i n g 	 u n d e r l y i n g
	 	 	 	 b e f o r e 	 j o i n t 	 o p e r a t i n g 	 o p e r a t i n g
	 t o t a l 	 r e v e n u e 	 	 t o t a l 	 e x t e r n a l 	 v e n t u r e s 	 a n d 	 p r o fi t   l o s s  	 p r o fi t   l o s s 
	 b e f o r e 	 i m p ac t 	 i n t e r  	 r e v e n u e 	 b e f o r e 	 a s s o c i a t e s 	 a n d 	 o f 	 j o i n t 	 b e f o r e 	 i m p ac t
	 o f 	 v o l c a n i c 	 s e g m e n t a l 	 i m p a c t 	 o f 	 i m p a c t 	 o f 	 v e n t u r e s 	 a n d 	 o f 	 v o l c a n i c
	 a s h 	 r e v e n u e 	 v o l c a n i c 	 a s h 	 v o l c a n i c 	 a s h 	 a s s o c i a t e s 	 a s h
s e c t o r 	 £ m 	 	 £ m 	 	 £ m 	 	 £ m 	 	 £ m 	 	 £ m	
u k	 3453	 61	 3392	 127		 	–		 127	
c a n a d a	 52	 	–		 52	 5	 – 		 5
r e s t  o f  n o r t h e r n r e g i o n	 967	 63	 904	 58	 2		 60	
t o t a l	n o r t h e r n	r e g i o n	 4472	 124	 4348	 180 		 2		 182	
g e r m a n y	 3829	 29	 3800	 76 		 5 		 81	
r e s t o f  c e n t r a l  e u r o p e	 627	 52	 575	 11		 – 		 11	
t o t a l	c e n t r a l 	e u r o p e	 4456	 81	 4375	 87 		 5 		 92	
f r e n c h  a i r l i n e	 399	 56	 343	 24	 –		 24
r e s t  o f  w e s t e r n e u r o p e	 2336	 13	 2323	 75 		 –		 75	
t o t a l	w e s t e r n 	e u r o p e	 2735	 69	 2666	 51 		 –		 51	
t o t a l	m a i n s t r e a m	 11663	 274	 11389	 318 		 7		 325	
s p e c i a l i s t   e m e r g i n g  m a r ke t s	 717	 –		 717	 25		 6	 19	
a c t i v i t y	 868	 –		 868	 61		 – 		 61	
a c c o m m o d a t i o n   d e s t i n a t i o n s	 760	 209	 551	 61		 10 		 71	
a l l  o t h e r s e g m e n t s	 – 		 –		 – 		 29	 –		 29
t o t a l 	g r o u p	 14008	 483	 13525	 436 		 11 		 447	
y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9
        u n d e r l y i n g
        o p e r a t i n g   g r o u p ’ s s h a r e
        p r o fi t   l o s s    o f u n d e r l y i n g
    i n t e r     b e f o r e j o i n t   p r o fi t  o f j o i n t   u n d e r l y i n g
    s e g m e n t a l   t o t a l  e x t e r n a l   v e n t u r e s a n d   v e n t u r e s a n d   o p e r a t i n g
  t o t a l  r e v e n u e   r e v e n u e  r e v e n u e  a s s o c i a t e s   a s s o c i a t e s   p r o fi t   l o s s 
sect or   £m   £m    £m   £m    £m   £m  
u k  r e s t a t e d    3332  87  3245   142    –    142 
c a n a d a  168  –    168   24  –   24
r e s t o f n o r t h e r n r e g i o n   878   81   797   46   2   48  
t o t a l  n o r t h e r n r e g i o n   r e s t a t e d     4378   168   4210    164    2    166  
g e r m a n y   4183   39   4144    65    5    70  
r e s t o f c e n t r a l e u r o p e   654   2   652    1    –    1  
t o t a l   c e n t r a l e u r o p e   4837  41  4796   66   5    71  
f r e n c h a i r l i n e   432  75  357   24  –   24
r e s t  o f w e s t e r n e u r o p e  2310  15   2295    57    –    57  
t o t a l w e s t e r n e u r o p e  2742   90   2652    33    –    33  
t o t a l  m a i n s t r e a m   r e s t a t e d     11957   299   11658   263    7   270  
s p e c i a l i s t    e m e r g i n g m a r ke t s   825   –     825    31    1    32  
a c t i v i t y  816   –     816    59    –    59  
a c c o m m o d a t i o n    d e s t i n a t i o n s   719   167   552    60    7    67  
a l l o t h e r  s e g m e n t s  –    –    –    27   –    27
t o t a l  g r o u p   r e s t a t e d    14317   466   13851    386    15    401  
 pl ea s e   r e f e r   t o   b a s i s   o f   p r e p a r a t i o n   w i t hin   n o t e   1   o f   t h e   fi n a n c i a l   s t at e m e n t s   f o r   d e t a il s  financial statements
notes to the consolidated financial statements c o n t i n u e d
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84  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
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          y e a r 	 e n d e d 	 	   y e a r  e n d e d 
          3 0 	 s e p t e m b e r   3 0  s e p t e m b e r
        	 2 0 1 0   2 0 0 9 
reconciliation of segmental analysis of revenue to statutory revenue       no t e	 £ m 	   £m 
t o t a l 	e x t e r n a l 	r e v e n u e 	i n	s e g m e n t a l 	a n a l y s i s 	        	 13525 	   13851 
i m p a c t  o f v o l c a n i c  a s h        1biii 	 125  –  
s t a t u t o r y 	r e v e n u e         	 13400 	   13851 
            r e s t a t e d  
        	 y e a r 	 e n d e d 	    y e a r  e n d e d 
          3 0 	 s e p t e m b e r   3 0  s e p t e m b e r
        	 2 0 1 0   2 0 0 9 
reconciliation of underlying operating profit to loss before tax         no t e	 £ m 	   £m  
g r o u p	u n d e r l y i n g 	o p e r a t i n g 	p r o fi t 	d i s c l o s e d	a b o v e        	 447	  401  
i m p a c t  o f v o l c a n i c  a s h         1biii 	 35   –  
        	 412 	  401 
s e p a r a t e l y d i s c l o s e d  i t e m s         3 	 250  340
a c q u i s i t i o n  r e l a t e d e x p e n s e s         13a 	 63   56
i m p a i r m e n t o f  g o o d w i l l         10 	 12   7
t a x a t i o n  o n  p r o fi t s  a n d  i n t e r e s t o n j o i n t v e n t u r e s a n d  a s s o c i a t e s        12 	 6  3
o p e r a t i n g 	p r o fi t   l o s s          	 81 	  5
n e t  fi n a n c i a l  e x p e n s e s         4 	 117  89
l o s s 	b e f o r e 	t a x         	 36  94
    t o t a l  d e p r e c i a t i o n  o f p r o p e r t y    
    p l a n t  a n d e q u i p m e n t  a n d   
  c a p i t a l  e x p e n d i t u r e   a m o r t i s a t i o n  o f i n t a n g i b l e  a s s e t s
     
  	 	 3 0 	 s e p t e m b e r   3 0 s e p t e m b e r  3 0 	 s e p t e m b e r   3 0 s e p t e m b e r
  	 	 2 0 1 0 	   2 0 0 9	 2 0 1 0 	   2 0 0 9
other segmental information   	 	 £ m 	   £m	 £ m 	   £m
u k    	 188   63	 84   91
c a n a d a    	 –   1	 –	  3
r e s t  o f n o r t h e r n r e g i o n    	 15   19	 9  7
t o t a l	n o r t h e r n	r e g i o n     	 203   83 	 93   101
g e r m a n y     	 24  28	 35  35
r e s t o f c e n t r a l e u r o p e     	 2  4 	 4  4
t o t a l	c e n t r a l	e u r o p e     	 26   32 	 39  39
f r e n c h  a i r l i n e     	 22   26 	 22  25
r e s t o f w e s t e r n  e u r o p e     	 22   33 	 37  49
t o t a l	w e s t e r n	e u r o p e    	 44   59	 59  74
t o t a l	m a i n s t r e a m     	 273   174 	 191   214
s p e c i a l i s t    e m e r g i n g  m a r ke t s     	 4  5 	 11  12
a c t i v i t y     	 29  35	 27  34
a c c o m m o d a t i o n    d e s t i n a t i o n s    	 17  16	 32  27
a l l o t h e r  s e g m e n t s     	 1  4 	 – 	  –  
t o t a l	g r o u p     	 324  234 	 261  287
t o t a l d e p r e c i a t i o n  o f  p r o p e r t y  p l a n t a n d d e p r e c i a t i o n  a n d a m o r t i s a t i o n  o f i n t a n g i b l e a s s e t s o f  £ 2 6 1 m   2 0 0 9   £ 2 8 7 m   c o m p r i s e s  £ 9 4 m   2 0 0 9  £ 1 0 3 m   
o f  a m o r t i s a t i o n  o f i n t a n g i b l e  a s s e t s  a s  s h o w n i n  n o t e 1 0 a n d £ 1 6 7 m  2 0 0 9   £ 1 8 4 m   o f  d e p r e c i a t i o n  a s  s h o w n  i n n o t e  1 1  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  85
        	 y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r   
        	 2 0 1 0 	   2 0 0 9 
reconciliation of capital expenditure to amounts included in the financial statements     n o t e   £ m   £ m
t o t a l g r o u p  c a p i t a l e x p e n d i t u r e a s  s h o w n  a b o v e        	 324  234
a n a l y s e d a s 
a d d i t i o n s  t o i n t a n g i b l e a s s e t s         	 43  82
a d d i t i o n s  t o p r o p e r t y   p l a n t  a n d e q u i p m e n t        	 281   152
        	 324   234
r e c o n c i l i a t i o n 	t o	t h e	n o t e s 	t o	t h e 	fi n a n c i a l 	s t a t e m e n t s
a d d i t i o n s  t o i n t a n g i b l e  a s s e t s  i n s e g m e n t a l  a n a l y s i s         	 43  82
a d d i t i o n s  t o g o o d w i l l         	 1  3
i n t a n g i b l e 	a s s e t s  	t o t a l 	a d d i t i o n s         10 	 44  85
a d d i t i o n s  t o  p r o p e r t y   p l a n t  a n d  e q u i p m e n t  i n  s e g m e n t a l  a n a l y s i s         	 281   152
p r o p e r t y  	p l a n t 	a n d 	e q u i p m e n t  	t o t a l 	a d d i t i o n s        11 	 281   152
groupwide disclosures
t h e u k i s t h e g r o u p ’ s  p a r e n t c o m p a n y ’ s  c o u n t r y o f  d o m i c i l e    r e v e n u e s  f r o m  e x t e r n a l  c u s t o m e r s  a n d  n o n  c u r r e n t  a s s e t s a r e  s p l i t  g e o g r a p h i c a l l y   
a s f o l l o w s 
  u k   g e r m a n y   f r a n c e  o t h e r  e u r o p e  r e s t  o f t h e  wo r l d   t o t a l
           
    r e s t a t e d                     r e s t a t e d
  2 0 1 0 	   2 0 0 9    2 0 1 0 	   2 0 0 9    2 0 1 0 	   2 0 0 9    2 0 1 0 	   2 0 0 9    2 0 1 0    2 0 0 9    2 0 1 0    2 0 0 9 
  £ m 	   £ m   £ m 	   £ m   £ m    £ m    £ m 	   £ m    £ m 	   £ m   £ m 	   £ m                                                       
r e v e n u e f r o m  
e x t e r n a l  c u s t o m e r s	 4134   4150   	 3704   3753 	 	 1313   1337   	 3524   3831   	 725    780 	 	 13400   13851  
n o n  c u r r e n t  a s s e t s	 2685   2598   	 639     643   	 735    779 	 	 856 	   955   	 756    726   	 5671    5701  
uni t e d   k in g d o m   r e v e n u e   a r i s e s   w h e r e   t h e   s o urc e   o f   t h e   s up p l y   i s   t h e   uni t e d   k in g d o m      in   ad d i t i o n   t o   t h e   uni t e d   k in g d o m    r e v e n u e   r e l a t in g   t o 
a n   in d i v i d u a l   c o un t r y   i s   s e p ar at e l y   d i s c l o s e d   w h e n   i t   r e p r e s e n t s   1 0    o r   m o r e   o f   t o t a l   r e v e n u e      ‘ o t h e r   e ur o p e ’   i s   d e fi n e d   a s   c o n t in e n t a l   e ur o p e  
a n d   e ir e   e x c lu d in g   u k    g e r m an y   a n d   f r a n c e      n o n  c ur r e n t   a s s e t s   f o r   t h e   t a b l e   ab o v e   in c lu d e s   in t a n g ib l e   a s s e t s   a n d   p r o p e r t y    p l a n t   an d 
e q uip m e n t   a n d   e x c lu d e s   all   fi n a n c i a l   in s t r um e n t s    d e f e r r e d   t a x   a s s e t s   a n d   p o s t  e m p l o y m e n t   b e n e fi t   a s s e t s     
3 separately disclosed items
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
        	 £ m 	   £m  
m e r g e r r e l a t e d i n t e g r a t i o n c o s t s         	 116  144  
a i r c r a f t a n d o t h e r a s s e t s         	 7  124 
r e s t r u c t u r i n g  a n d o t h e r s e p a r a t e l y d i s c l o s e d i t e m s         	 58  72 
t o t a l	p r e	v o l c a n i c 	a s h         	 181  340  
i n c r e m e n t a l  c o s t s  c a u s e d  b y v o l c a n i c  a s h  d i s r u p t i o n        	 69  –  
t o t a l        	 250  340 
s e p a r a t e l y d i s c l o s e d  fi n a n c i a l  e x p e n s e s         	 7   12 
t h e   2 0 0 9   c o m p ar at i v e   n um b e r s   h a v e   b e e n   r ea ll o c at e d   t o   e n s ur e   t h at   t h e y   a r e   in   ali g nm e n t   w i t h   t h e   r e v i s e d   c r i t e r i a   u s e d   t o   d i f f e r e n t i at e 
b e t w e e n   t h e   d i f f e r e n t   t y p e s   o f   s e p ar at e l y   d i s c l o s e d   i t e m s 
s e p ar at e l y   d i s c l o s e d   i t e m s   w i t hin   t h e   o p e r at in g   p r o fi t   l o s s    a r e   in c lu d e d   w i t hin   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   a s   f o ll o w s 
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
        	 £ m 	   £m  
c o s t o f  s a l e s         	 133  209  
a d m i n i s t r a t i v e  e x p e n s e s        	 117   131 
t o t a l        	 250   340  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
86  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
merger related integration costs
t h e s e   r e l a t e   p r im a r il y   t o   t h e   c o s t s   o f   in t e g r at i o n   o f   t h e   u k   b u s in e s s e s      t h e   m a j o r i t y   o f   c o s t s    £ 4 8 m    a r i s e   f r o m   t h e   in t e g r at i o n   o f   f ir s t   c h oi c e 
a n d   t h o m s o n   in   t h e   u k    an d    in   p ar t i c ul a r    f r o m   t h e   f o r m at i o n   o f   o n e   a ir lin e   an d   a n   in t e g r at e d   r e t a il   e s t at e      a   c o m bin e d   m a in s t r eam   u k   h ead  
o f fi c e   h a s   b e e n   e s t a b li s h e d   in   l u t o n     
t h e   u k   b u s in e s s   h a s   a l s o   n o w   c o m p l e t e d   t h e   c r eat i o n   o f   a   s in g l e   m a n a g e m e n t   in f o r m a t i o n    mi    s ui t e      t h e   im p r o v e d   mi   an d   f o r e c a s t   c ap a bili t y 
w hi c h   i t   h a s   g i v e n   t h e   b u s in e s s   h a s   n o w   l e d   t o   t h e   c l o s in g   o u t   o f   c e r t a in   f o r e i g n   c ur r e n c y   p o s i t i o n s   b a s e d   o n   t h e   im p r o v e d   v i s ibili t y   o f   p a s t   a n d  
f u t ur e   r e q uir e m e n t s    r e s ul t in g   in   a   £ 2 0 m   c h ar g e   in   t h e   c ur r e n t   y ea r 
c o s t s   a l s o   a r o s e   f r o m   t h e   o n g oin g   m e r g e r   o f   f o r m e r   t u i   b u s in e s s e s   b a s e d   in   c o n t in e n t a l   e ur o p e   w i t h   t h e ir   f ir s t   c h oi c e   c o un t e r p a r t s    £ 4 m       
in   t h e   a c c o m m o d a t i o n      d e s t in a t i o n s   s e c t o r   s e p ar at e   f ir s t   c h oi c e   a n d   t u i   t o ur i s m   in c o min g   a g e n c i e s   h a v e   b e e n   c o m bin e d   in   a   n um b e r   o f    
k e y   d e s t in a t i o n s    n o t a b l y   s p a in    t h e   d o mini c a n   r e p ub li c    g r e e c e   a n d   t ur k e y    t o t a l   £ 1 6 m  
c o s t s   in c lu d e   am oun t s   p a i d   o r   p r o v i d e d   f o r   r e d un d a n c y   an d   in t e g r at i o n   r e mun e r a t i o n   c o s t s    in c lu d in g   t h e   c o s t   o f   t h e   v a lu e   c r eat i o n   s h a r e   pl a n 
a n d   r o ll e d   o v e r   f ir s t   c h oi c e   s h a r e   a w a r d s    n o t e   5  d       p r o p e r t y   c l o s ur e s   a n d   o n e r o u s   l ea s e   o b li g at i o n s    a s   w e ll   a s   p r o f e s s i o n al   f e e s   r e l a t in g   t o 
t h e   in t e g r at i o n   p r oj e c t 
aircraft and other assets
in c lu d e d   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   i s   a   £ 4 7 m   c r e d i t   w hi c h   r e l a t e s   t o   a   c o m bin at i o n   o f   a irc r af t   o r d e r   c an c e ll a t i o n   c r e d i t s   a n d  
c o m p e n s a t i o n   f o r   d e l a y s   t o   t h e   d e li v e r y   o f   a irc r af t      p r in c ip a l   c h a r g e s   in c lu d e   £ 1 5 m   f o r   t h e   im p a ir m ent   o f   t h e   c r ui s e   s hip    t h e   ‘ i s l an d   e s c ap e ’ 
 n o t e   1 1     £ 1 2 m   t o   p r o v i d e   f o r   c o s t s   r e l a t in g   t o   t h e   c o r s a ir   fl e e t   r e n e w a l   a s   p ar t   o f   t h e   r e s t r u c t ur in g   o f   t h at   b u s in e s s    an d   £ 7 m   t o   r e c o r d   an 
o n e r o u s   l ea s e   p r o v i s i o n   o n   a n   un u s e d   p r o p e r t y    
in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9   t h e r e   w a s   a   £ 1 2 4 m   im p a ir m e n t   c h ar g e   p r in c ip all y   in   r e s p e c t   o f   a s s e t   w r i t e  d o w n s   o f   b o e in g   7 4 7 s   o p e r at e d 
b y   c o r s a ir    n o t e   1 1     
restructuring and other separately disclosed items
c o s t s   in c ur r e d   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   in c lu d e   r e s t r u c t ur in g   p r og r a m m e s   w hi c h   a r e   n o t   r e l a t e d   t o   t h e   b u s in e s s   c o m bin at i o n   o f 
f ir s t   c h oi c e   a n d   t h e   t o ur i s m   b u s in e s s e s   o f   t u i   a g      t h e   p r in c ip al   i t e m s   ar e   £ 4 3 m   t o   s i g ni fi c a n t l y   r e s t r u c t ur e   c o r s a ir    t h e   s c h e d ul e d   f r e n c h 
a ir lin e    £ 2 2 m   f o r   t h e   r e s t r u c t ur in g   o f   h o t e l   o p e r at i o n s   in   t ur k e y   a n d   £ 1 3 m   t o   r e s t r u c t ur e   t h e   t o ur   o p e r at o r    r e t a il   n e t w o r k   a n d   h o t e l   o p e r at i o n s 
o f   n o u v e ll e s   f r o n t i è r e s   in   f r a n c e      a l s o   in c lu d e d   i s   a   £ 3 0 m   c r e d i t   a r i s in g   f r o m   t h e   r e v a lu at i o n   o f   t h e   in v e s t m e n t   in   t h e   a ir lin e   g r o up    n o t e   1 2   
a n d   a   £ 1 3 m   g a in   r e c og ni s e d   o n   t h e   d i s p o s a l   o f   t h e   c an ad i a n   m a in s t r ea m   o p e r at i o n   w hi c h   w a s   c o n t r ib u t e d   w h e n   c r eat in g   t h e   s t r at e g i c   v e n t ur e 
 n o t e   1 8       t hi s   g a in   w a s   m o r e   t h a n   o f f s e t   b y   o ur   s h a r e   o f   p o s t  d ea l   r e s t r u c t ur in g   c o s t s   a n d   r e l a t e d   s k y s e r v i c e   w r i t e  o f f s 
t h e   m a in   c o s t s   in c ur r e d   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9   w e r e   £ 4 0 m   in   r e l a t i o n   t o   t r a n s ac t i o n   c o s t s   an d   a s s o c i at e d   r e s t r u c t ur in g   in   t h e 
g e r m an   s o urc e   m a r k e t    d u e   t o   t h e   t r a n s ac t i o n   t o   s e ll   t u i fl y ’ s   c i t y   c h ar t e r   b u s in e s s   t o   a ir   b e r lin   p l c    £ 1 6 m   d u e   t o   t h e   c l o s ur e   o f   t h e   s un s a il 
c lub s   in   t ur k e y   a n d   t h e   c ar ib b ea n    a n d   £ 1 3 m   f o r   r e s t r u c t ur in g   o f   t h e   f r e n c h   t o ur   o p e r at o r    n o u v e ll e s   f r o n t i è r e s 
impact of volcanic ash
in c lu d e d   in   s e p ar at e l y   d i s c l o s e d   i t e m s   ar e   t h e   in c r e m e n t al   d ir e c t   c o s t s   in c ur r e d   b y   t h e   g r o up   in   r e s p e c t   o f   w e l f a r e   c o s t s   t o   l o o k   a f t e r   t h e 
c u s t o m e r s   w h o   w e r e   af f e c t e d   b y   t h e   c l o s ur e   o f   e ur o p ea n   a ir s p ac e      t h e s e   c o s t s   p r in c ip all y   in c lu d e   h o t e l   c o s t s   f o r   s t r a n d e d   inb oun d   a n d 
o u t b o un d   c u s t o m e r s    a n d   t h e   c o s t   o f   r e p a t r i at i o n   o f   inb oun d   c u s t o m e r s      t h e s e   c o s t s   a m oun t   t o   £ 6 9 m   a n d   a r e   s h o w n   in   t h e   ‘ p r o   f o r m a   im p ac t  
o f   v o l c a ni c   a s h ’   c o lum n   o n   t h e   f ac e   o f   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
separately disclosed financial expenses
t h e   s e p ar at e l y   d i s c l o s e d   fi n a n c i a l   e x p e n s e s   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   r e l a t e   t o   n o n   d e b t   i t e m s    p r in c ip all y   a   £ 3 m   in t e r e s t   c h ar g e   o n  
a   t a x   p e n al t y   im p o s e d   b y   t h e   t ur k i s h   a u t h o r i t i e s   r e l a t in g   t o   fi n a n c i a l   y ea r s   up   t o   a n d   in c lu d in g   2 0 0 8       
t h e   s e p ar at e l y   d i s c l o s e d   fi n a n c i a l   e x p e n s e s   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9   r e l a t e   t o   n o n   d e b t   i t e m s   in c lu d in g   t h e   r e v a lu at i o n   o f   a   p u t  
o pt i o n   w r i t t e n   b y   t h e   g r o up   in   r e s p e c t   o f   a   n o n  c o n t r o llin g   in t e r e s t   s h a r e h o l d e r   o f   l ’ t u r   t o ur i s mu s   a g    l ’ t u r   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  87
4 net financial expenses
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
        	 £ m 	   £m  
f i n a n c i a l 	i n c o m e
b a n k i n t e r e s t  r e c e i v a b l e         	 3   6  
i n t e r e s t o n p e n s i o n  s c h e m e  a s s e t s         	 66   64 
o t h e r fi n a n c i a l  i n c o m e         	 –   2  
t o t a l        	 69   72  
f i n a n c i a l	 e x p e n s e s
b a n k  i n t e r e s t  p a y a b l e  o n  l o a n s a n d o v e r d r a f t s         	 10  11
f i n a n c e  c h a r g e s o n c o n v e r t i b l e  b o n d        	 44   –  
i n t e r e s t  o n  p e n s i o n  s c h e m e  l i a b i l i t i e s         	 84  81
i n t e r e s t  p a y a b l e  i n  r e s p e c t  o f l o a n s f r o m p a r e n t         	 15   42
f i n a n c e l e a s e  c h a r g e s          	 11  10
u n w i n d i n g  o f d i s c o u n t o n p r o v i s i o n s         	 11   5
o t h e r fi n a n c i a l  e x p e n s e s        	 11  12
t o t a l        	 186  161
n e t	fi n a n c i a l 	e x p e n s e s         	 117   89
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
        	 £ m 	   £m  
n e t fi n a n c i a l  e x p e n s e s   a s  a b o v e         	 117   89
l e s s s e p a r a t e l y d i s c l o s e d fi n a n c i a l  e x p e n s e s   n o t e  3          	 7	  12 
n e t	u n d e r l y i n g 	fi n a n c i a l 	e x p e n s e s         	 110  77
5 employees
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
a average number of employees         	 n u m b e r 	   number  
b y	s e c t o r
m a i n s t r e a m  s e c t o r        	 35375    35130 
s p e c i a l i s t     e m e r g i n g  m a r ke t s  s e c t o r         	 1522    1474 
a c t i v i t y  s e c t o r        	 4492    4792 
a c c o m m o d a t i o n    d e s t i n a t i o n s s e c t o r         	 6941	   7673  
c o r p o r a t e         	 394    394 
t o t a l        	 48724    49463 
t h e   2 0 0 9   c o m p ar at i v e   n um b e r s   h a v e   b e e n   r ea ll o c at e d   t o   e n s ur e   t h at   t h e y   a r e   in   ali g nm e n t   w i t h   a   r e v i s e d   m e t h o d   o f   a ll o c at in g   h ead c o un t   t o   t h e  
v a r i ou s   s e c t o r s    t h e r e   i s   n o   c h an g e   t o   t h e   t o t al   n um b e r   o f   e m p l o y e e s 
          y e a r 	 e n d e d 	   y e a r e n d e d  
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r
        	 2 0 1 0 	   2 0 0 9 
b staff costs         	 £ m 	   £m 
w a g e s  a n d s a l a r i e s        	 1385   1293 
s o c i a l  s e c u r i t y  c o s t s         	 248   234 
p e n s i o n  c o s t s        	 61  47  
s h a r e  b a s e d  p a y m e n t s   n o t e 5  d           	 15  17  
t o t a l        	 1709   1591  
in c lu d e d   w i t hin   w a g e s   a n d   s a l a r i e s   a r e   £ 9 6 m    2 0 0 9    £ 6 5 m    o f   w a g e s   a n d   s a l a r i e s   an d   £ 8 m    2 0 0 9    £ 5 m    o f   s o c i al   s e c ur i t y   c o s t s   in   r e l a t i o n   t o 
r e d un d a n c y   a n d   in t e g r at i o n   c o s t s    t h e s e   r e l a t e d   s t af f   c o s t s   ar e   in c lu d e d   w i t hin   s e p ar at e l y   d i s c l o s e d   i t e m s    n o t e   3  
c pension costs
t h e   g r o up   o p e r at e s   p e n s i o n   s c h e m e s   f o r   e m p l o y e e s   e li g ib l e   a n d   w i s hin g   t o   p ar t i c ip a t e   in   t h e   s c h e m e s      t h e s e   c o m p r i s e   b o t h   d e fi n e d  
c o n t r ib u t i o n   a n d   d e fi n e d   b e n e fi t   s c h e m e s      p e n s i o n   o b li g at i o n s   v a r y   r e fl e c t in g   t h e   d i f f e r e n t   l e g a l   a n d   m a r k e t   c o n d i t i o n s   in   eac h   c o un t r y   o f 
o p e r at i o n      d e fi n e d   c o n t r ib u t i o n   s c h e m e s   a r e   f un d e d   b y   t h e   p a y m e n t   o f   c o n t r ib u t i o n s   t o   p r i v at e   a n d   s t at e  r un   o r g a ni s a t i o n s    w hil s t   d e fi n e d  
b e n e fi t   s c h e m e s   c o m p r i s e   b o t h   f un d e d   a n d   un f un d e d   s c h e m e s      t h e   a s s e t s   o f   a ll   t h e   f un d e d   d e fi n e d   b e n e fi t   s c h e m e s   a r e   h e l d   s e p ar at e l y   f r o m  
t h e   a s s e t s   o f   t h e   g r o up  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
88  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
defined contribution schemes for employees and directors 
c ur r e n t   c o n t r ib u t i o n s   a r e   r e c og ni s e d   a s   a n   e x p e n s e   in   t h e   y ea r   a n d   o n c e   p a i d   t h e   g r o up   h a s   n o   f ur t h e r   li a bili t y      p e n s i o n   c o s t s   o f   £ 2 4 m    
 2 0 0 9    £ 2 0 m    r e l a t in g   t o   d e fi n e d   c o n t r ib u t i o n   s c h e m e s   w e r e   c h ar g e d   t o   t h e   in c o m e   s t at e m e n t 
defined benefit pension schemes 
t h e   m o v e m e n t   o f   d e fi n e d   b e n e fi t   p e n s i o n   o b li g at i o n s   an d   a s s e t s   i s   d e t a il e d   b e l o w    s um m ar i s e d   a s   u k    g e r m an y   a n d   o t h e r      o t h e r   in c lu d e s  
f un d e d   s c h e m e s   in   ir e l a n d    t h e   n e t h e r l an d s    sw i t z e r l a n d   an d   n o r w a y    w hil s t   t h e   m a in   un f un d e d   ar r a n g e m e n t s   a r e   in   a u s t r i a   a n d   f r a n c e       
a lm o s t   a ll   u k   s c h e m e s   a r e   f un d e d   w hil s t   g e r m an   s c h e m e s   a r e   un f un d e d     
t h e   p r in c ip al   f un d e d   s c h e m e s   in   t h e   u k   a r e   s h o w n   in   t h e   t a b l e   b e l o w      t h e s e   a r e   c l o s e d   t o   n e w   m e m b e r s    w i t h   t h e   e x c e pt i o n   o f   e x i s t in g 
e m p l o y e e s   w o r k in g   t o w ar d s   t h e ir   e n t r y   q u ali fi c a t i o n   d a t e 
  d a t e  o f l a s t  f u l l  a v e r a g e  g r o u p  a v e r a g e e m p l o y e e
s c h e m e  n a m e   a c t u a r i a l  v a l u a t i o n   c o n t r i b u t i o n  r a t e  c o n t r i b u t i o n r a t e  
b r i t a n n ia   a i r w a y s   l i m i t e d   s u pe r a n n u a t i o n   a n d   l i f e   a s s u r a n c e   s c h e m e   3 1  m a r c h  2 0 0 8   3 8  8  p l u s  £ 4 8  2 m  p e r a n n u m    1 0  0 
t u i  p e n s i o n  s c h e m e  u k   3 1  m a r c h  2 0 0 8   1 6  5   p l u s  £ 1 7  6 m  p e r  a n n u m    5  4 
a i r  2 0 0 0 l i m i t e d  r e t i r e m e n t  b e n e fi t s  s c h e m e   1  n o v e m b e r  2 0 0 6   2 6  3   p l u s  £ 1  4 m p e r a n n u m   9  8 
u n i j e t  g r o u p p l c f i n a l s a l a r y  s c h e m e   1  no v ember   2006   247  plus £13m  per   annum  100
 c a s h   c o n t r ib u t i o n s   f r o m   t h e   c o m p a n y   t o   f un d   t h e   s c h e m e s ’   d e fi c i t s   a r e   c ur r e n t l y   r e d u c e d   b y   a n   a m oun t   h e l d   b ac k   un d e r   a n   e s c r o w 
a r r an g e m e n t   a g r e e d   b e t w e e n   t h e   c o m p a n y   an d   t h e   s c h e m e s ’   t r u s t e e s      t h e   c o m p a n y   an d   t r u s t e e s   a r e   c ur r e n t l y   in   d i s c u s s i o n   r e g a r d in g   
t h e   o n g oin g   f un d in g   o f   t h e   s c h e m e s ’   d e fi c i t s    a n d   t h e   e s c r o w   a r r an g e m e n t   f o r m s   p ar t   o f   t h e s e   d i s c u s s i o n s      t hi s   a r r an g e m e n t   e x pir e s   o n    
3 1   m a rc h   2 0 1 1      t h e   v a lu e s   q u o t e d   ab o v e   a r e   t h e   g r o s s   v a lu e s   b e f o r e   r e d u c t i o n 
w h e r e   t h e r e   i s   m o r e   t h a n   a   s in g l e   c l a s s   o f   m e m b e r s hip    c o n t r ib u t i o n   r at e s   r e fl e c t   w e i g h t e d   a v e r a g e   v a lu e s   w i t hin   t h e   s c h e m e      c o n t r ib u t i o n   r at e s  
a r e   s t at e d   b e f o r e   ad j u s t m e n t   f o r   s a l a r y   s ac r i fi c e   a r r an g e m e n t s   w h e r e   a p p li c a b l e 
t h e   t r u s t e e s   o f   a ll   f o ur   s c h e m e s   li s t e d   ab o v e   a r e   c ur r e n t l y   un d e r t a k in g   v a lu at i o n s   a n d   a r e   in   n e g o t i at i o n   w i t h   t h e   c o m p an y   t o   a g r e e   t h e s e 
t h e   p r in c ip al   un f un d e d   s c h e m e s   in   g e r m an y   a r e   s h o w n   b e l o w      t h e s e   w e r e   a ll   s ubj e c t   t o   a   f ull   ac t u ar i a l   v a lu at i o n   w i t hin   t hr e e   m o n t h s   p r e c e d in g  
t h e   b al a n c e   s h e e t   d a t e 
scheme name            st a t us
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v e r s o r g u n g s o r d n u n g ’  t u i  d e u t s c h l a n d g m b h          closed t o new  members
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v a lu at i o n s   o f   t h e   s c h e m e s   a r e   m ad e   b y   q u ali fi e d   ac t u ar i e s   u s in g   m a r k e t  b a s e d   v a lu at i o n s   f o r   t h e   a s s e t s   a n d   t h e   p r oj e c t e d   uni t   m e t h o d   f o r   t h e 
li a bili t i e s      t h e   g r o up   r e c og ni s e s   a ll   ac t u ar i a l   g a in s   o r   l o s s e s   in   t h e   c o n s o li d at e d   s t at e m e n t   o f   c o m p r e h e n s i v e   in c o m e 
t h e   a s s e t s   o f   eac h   s c h e m e   h a v e   b e e n   t a k e n   at   m a r k e t   v a lu e   a n d   li a bili t i e s   in   eac h   t e r r i t o r y   h a v e   b e e n   c al c ul a t e d   u s in g   t h e   f o ll o w in g   p r in c ip al  
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d i s c o u n t  r a t e   53   55 	 43  53	 39  48
1    p e n s i o n   i n c r e a s e s   i n   t h e   u k   s c h e m e s   r e fl e c t   t h e   g e n e r a l   i n fl a t i o n   a s s u m p t i o n    s u b j e c t   t o   m i n i m u m   a n d   m a x i m u m   i n c r e a s e   l i m i t s 
2    4  2     2 0 0 9    4  2     i s   a p p l i c a b l e   a c r o s s   a l l   u k   s c h e m e s   w i t h   t h e   e x c e p t i o n   o f   t h e   b r i t a n n i a   a i r w a y s   l i m i t e d   s u p e r a n n u a t i o n   a n d   l i f e   a s s u r a n c e   s c h e m e   w h i c h   h a s   a s s u m e d   s a l a r y   i n fl a t i o n   o f 
3  7    p l u s   1  4     2 0 0 9    3  7    p l u s   0  8     t o   r e fl e c t   a n n u a l   s e r v i c e   i n c r e m e n t s 
3    t h e   a s s u m p t i o n s   f o r   o t h e r   a r e   a   w e i g h t e d   a v e r a g e 
t h e   c o m p a n y   i s   a w a r e   o f   t h e   u k   g o v e r nm e n t ’ s   p r o p o s e d   c h a n g e   in   p e n s i o n   in d e x at i o n   f r o m   t h e   r e t a il   p r i c e s   in d e x    r p i    t o   t h e   c o n s um e r  
p r i c e s   in d e x    c p i   
f o ll o w in g   t h e   a nn oun c e m e n t    t h e   c o m p a n y   un d e r t o o k   a n   e x e rc i s e   t o   e x a min e   s c h e m e   r ul e s   g o v e r nin g   p e n s i o n   in c r ea s e s   in   i t s   m a t e r i al   s c h e m e s     
t h e   r e s ul t s   o f   t hi s   e x e rc i s e   t og e t h e r   w i t h   c e r t a in   a s s um p t i o n s   w e r e   u s e d   t o   d e v e l o p   a n   e s t im at e   o f   t h e   p o t e n t i a l   im p ac t      u s in g   a n   r p i   t o   c p i 
d i f f e r e n t i a l   o f   0  7    a n d   a p p l y in g   i t   t o   a ll   u k   s c h e m e   p e n s i o n   in c r ea s e s   in   d e f e r m e n t    o t h e r   t h a n   t h o s e   s ubj e c t   t o   fi x e d   in fl at i o n   e s c a l at i o n    w o ul d  
p r o d u c e   a   p o t e n t i a l   r e d u c t i o n   in   p e n s i o n   li a bili t i e s   o f   a p p r o x im a t e l y   £ 8 m      t h e   r e d u c t i o n   w o ul d   b e   r e c og ni s e d   t hr o u g h   ac t u ar i a l   g a in s   a n d  
t r eat e d   a s   a   c h an g e   in   ac t u ar i a l   a s s um p t i o n s   d u e   t o   p e n s i o n   in c r ea s e s   b e in g   link e d   t o   s t at u t o r y   in d e x at i o n   a s   o p p o s e d   t o   r p i   
f ur t h e r    i f   t h e   c h an g e   w e r e   e x t e n d e d   t o   ap p l y   t o   b o t h   p e n s i o n   in c r ea s e s   in   d e f e r m e n t   an d   p e n s i o n   in c r ea s e s   in   p a y m e n t    t h e r e   i s   a   t o t al 
p o t e n t i a l   r e d u c t i o n   in   p e n s i o n   li a bili t i e s   o f   a p p r o x im a t e l y   £ 3 0 m    b u t   s u c h   a   c h an g e   w o ul d   r e q uir e   f ur t h e r   p e r mi s s i v e   l e g i s l at i o n   an d   t h e 
a g r e e m e n t   o f   t h e   s c h e m e   t r u s t e e s   a s   t h e   p e n s i o n s   in   p a y m e n t   in c r ea s e s   a r e   c ur r e n t l y   link e d   t o   r p i      t h e   e s t im at e d   £ 2 2 m   f ur t h e r   r e d u c t i o n 
w o ul d   b e   r e c og ni s e d   t hr o u g h   t h e   in c o m e   s t at e m e n t   a s   t h e   c h an g e   t o   c p i   o n   t h e s e   p l a n s   w o ul d   b e   c o n s i d e r e d   a   c h an g e   in   b e n e fi t   o b li g at i o n     
t h e   p o t e n t i a l   r e d u c t i o n   in   t h e   c ur r e n t   y ea r   o f   £ 8 m   i s   m o d e s t   c o m p ar e d   t o   t h e   t o t a l   u k   p e n s i o n   li a bili t y   o f   £ 3 4 9   milli o n   b e c a u s e   s i g ni fi c a n t  
e l e m e n t s   o f   t h e   ac c r u e d   li a bili t i e s   a r e   s ubj e c t   t o   fi x e d   r at e s   o f   r e v a lu at i o n   wwwtuitravelplccom
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t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  89
w hil s t   in   m a n a g e m e n t ’ s   v i e w   t h e   p o t e n t i a l   ad j u s t m e n t   t o   t h e   p e n s i o n   li a bili t y   i s   n o t   m a t e r i al    n o   ad j u s t m e n t   h a s   b e e n   r e c og ni s e d   d u e   t o   t h e 
s i g ni fi c a n t   un c e r t a in t y   r e l a t in g   t o   k e y   v a r i a b l e s   a n d   a s s um p t i o n s   o n   t hi s   i s s u e 
t h e   m o r t a li t y   a s s um p t i o n s   un d e r l y in g   t h e   v a lu e   o f   t h e   ac c r u e d   li a bili t i e s   f o r   eac h   t e r r i t o r y   a r e   s e t   o u t   in   t h e   t a b l e s   b e l o w      t h e   m o r t a li t y  
a s s um p t i o n s   a r e   b a s e d   o n   r e l e v an t   s t a n d ar d   m o r t a li t y   t a b l e s   in   eac h   t e r r i t o r y 
        	 2 0 1 0 	   2 0 0 9 
u k	l i f e 	e x p e c t a n c y	 w e i g h t e d 	a v e r a g e          	 y e a r s 	   y ears 
m a l e s
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 230   229  
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 243   242 
f e m a l e s
l i f e   e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 254   252 
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 265   264  
        	 2 0 1 0 	   2 0 0 9 
g e r m a n y 	l i f e 	e x p e c t a n c y         	 y e a r s 	   y ears 
m a l e s
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 183 	  182 
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 214 	  209 
f e m a l e s	 	
l i f e   e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 220 	  223  
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 250 	  249  
        	 2 0 1 0 	   2 0 0 9 
o t h e r	l i f e 	e x p e c t a n c y	 w e i g h t e d 	a v e r a g e          	 y e a r s 	   y ears  
m a l e s
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 205 	  188  
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 219 	  202  
f e m a l e s
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   o n t h e b a l a n c e  s h e e t  d a t e       	 229 	  218  
l i f e  e x p e c t a n c y  i n y e a r s f o r  a  p e n s i o n e r r e t i r i n g a g e d 6 5   2 0 y e a r s  a f t e r t h e  b a l a n c e  s h e e t d a t e     	 236 	  225  
t h e   f a ir   v a lu e   o f   a s s e t s   o f   t h e   s c h e m e s   in   eac h   t e r r i t o r y   a r e   s e t   o u t   b e l o w 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m  £ m   £m	 £ m   £m	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
e q u i t i e s	 523   457   	 –	  –  	 47   46  	 570   503 
g o v e r n m e n t  d e b t	 242   210  	 –	  –  	 37   37  	 279   247 
c o r p o r a t e  b o n d s	 177   129  	 –	  – 	 21   21  	 198	   150 
p r o p e r t y	 12   15 	 –	  – 	 1  1 	 13   16 
c a s h a n d  c a s h  e q u i v a l e n t s	 20  45 	 –	  – 	 1  1  	 21   46 
o t h e r	 99  86 	 – 	  –  	 35   31  	 134   117 
t o t al	 1  0 7 3   942  	 –	  – 	 142  137  	 1215   1079 
t h e   e x p e c t e d   r at e s   o f   r e t ur n   o n   eac h   c a t e g o r y   o f   a s s e t s   in   eac h   t e r r i t o r y   a r e   a s   f o ll o w s 
  uk   german y   other
     
  2 0 1 0   2009   2 0 1 0   2009 	 2 0 1 0   2009
           	                
e q u i t i e s   78  78 	 n a	  n a 	 80	  80 
g o v e r n m e n t  d e b t   3  8  41 	 n a	  n a 	 42	  42 
c o r p o r a t e  b o n d s  53  55 	 n a	  n a 	 43	  38 
p r o p e r t y   65  60 	 n a	  n a 	 64	  58 
c a s h a n d c a s h e q u i v a l e n t s   05  05 	 n a	  n a 	 26   05 
o t h e r   74   74  	 n a	  n a 	 25	  25  
o v e r a l l e x p e c t e d  r a t e  o f r e t u r n   63   62  	 n a	  n a 	 50	  51  
t h e   o v e r a ll   e x p e c t e d   r at e   o f   r e t ur n   i s   c al c ul a t e d   b y   w e i g h t in g   t h e   in d i v i d u a l   r at e s   in   ac c o r d a n c e   w i t h   t h e   a n t i c ip a t e d   b al a n c e   in   t h e   s c h e m e s ’ 
in v e s t m e n t   p o r t f o li o      t h e   f a ir   v a lu e s   o f   t h e   s c h e m e s ’   a s s e t s   a r e   n o t   in t e n d e d   t o   b e   r ea li s e d   in   t h e   s h o r t  t e r m   an d   m a y   b e   s ubj e c t   t o   s i g ni fi c a n t  
c h an g e   b e f o r e   t h e y   a r e   r ea li s e d    financial statements
notes to the consolidated financial statements c o n t i n u e d
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90  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
c h an g e s   in   t h e   f a ir   v a lu e   o f   s c h e m e   a s s e t s   in   eac h   t e r r i t o r y   ar e   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m  £ m   £m	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
b a l a n c e  a t b e g i n n i n g  o f  y e a r	 942 	   810   	 –	  –  	 137	  114  	 1079	   924  
e x p e c t e d   r e t u r n  o n  s c h e m e  a s s e t s	 60 	  58 	 –	  – 	 6 	  6  	 66	  64 
c o m p a n y   c o n t r i b u t i o n s	 89 	  86  	 – 	  –  	 5 	  6 	 94	  92 
m e m b e r c o n t r i b u t i o n s	 4 	  6 	 – 	  –  	 2 	  1 	 6	  7  
b e n e fi t s  p a i d	 61   55 	 –	  –  	 5   6 	 66  61
e x p e r i e n c e  g a i n s   l o s s e s 	 39	  37  	 –	  –  	 – 	  3	 39 	  34 
f o r e i g n e x c h a n g e	 – 	  –  	 –	  –  	 3   19  	 3   19  
b a l a n c e	a t	e n d	o f	y e a r	 1073 	   942   	 –	  –  	 142	  137   	 1215	   1079  
a c t u a l r e t u r n  o n  s c h e m e  a s s e t s	 99 	  95  	 –	  –  	 6 	  3  	 105	  98  
e m p l o y e r   c o n t r ib u t i o n s   in   t h e   n e x t   y ea r   b a s e d   o n   a g r e e m e n t s   in   p l ac e   at   t h e   b al a n c e   s h e e t   d a t e   a r e   e x p e c t e d   t o   b e   £ 9 8 m   in   r e s p e c t   o f   t h e    
u k   a n d   £ 5 m   in   r e s p e c t   o f   o t h e r      c a s h   c o n t r ib u t i o n s   f r o m   t h e   c o m p a n y   t o   f un d   t h e   u k   s c h e m e s ’   d e fi c i t s   a r e   c ur r e n t l y   r e d u c e d   b y   a n   a m oun t 
h e l d   b ac k   un d e r   a n   e s c r o w   a r r an g e m e n t   a g r e e d   b e t w e e n   t h e   c o m p a n y   a n d   t h e   s c h e m e s ’   t r u s t e e s      t h e   c o m p an y   a n d   t r u s t e e s   a r e   c ur r e n t l y    
in   d i s c u s s i o n   r e g a r d in g   t h e   o n g oin g   f un d in g   o f   t h e   s c h e m e s ’   d e fi c i t s    a n d   t h e   e s c r o w   a r r an g e m e n t   f o r m s   p ar t   o f   t h e s e   d i s c u s s i o n s       
t hi s   a r r an g e m e n t   e x pir e s   o n   3 1   m a rc h   2 0 1 1  
t h e   c o m p o s i t i o n   o f   t h e   f a ir   v a lu e   o f   s c h e m e   a s s e t s   in   eac h   t e r r i t o r y   i s   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m   £ m   £m 	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
s c h e m e s  w i t h s u r p l u s  o f a s s e t s	 2   2 	 –	  –  	 9  10 	 11   12 
s c h e m e s  w i t h d e fi c i t  o f a s s e t s	 1071   940   	 –	  – 	 133  127  	 1204   1067 
t o t a l  1073   942  	 –	  – 	 142  137   	 1215   1079 
c h an g e s   in   t h e   p r e s e n t   v a lu e   o f   d e fi n e d   b e n e fi t   o b li g at i o n s   in   eac h   t e r r i t o r y   ar e   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m   £ m   £m 	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
b a l a n c e  a t b e g i n n i n g  o f  y e a r	 1327   1015  	 97	  50 	 156 	   113  	 1580	   1178 
r e c l a s s i fi c a t i o n	 –	  –  	 – 	  18 	 – 	  – 	 – 	  18 
c u r r e n t s e r v i c e c o s t	 26   20  	 7 	  3  	 4	  4 	 37	  27 
i n t e r e s t c o s t o n o b l i g a t i o n	 72	  69  	 5 	  5  	 7	  7 	 84	  81 
b e n e fi t s  p a i d	 61   55 	 2   3	 7   8	 70  66
m e m b e r c o n t r i b u t i o n s	 4 	  6  	 –	  – 	 2 	  1  	 6	  7 
e x p e r i e n c e l o s s e s  	 54	  272   	 16	  13  	 11 	  20 	 81	  305  
a m o u n t s  a r i s i n g  f r o m  t r a n s f e r s  i n	 – 	  – 	 –	  1 	 –	  – 	 – 	  1  
f o r e i g n e x c h a n g e	 –	  –  	 6  10  	 3   19  	 9  29  
b a l a n c e	a t	e n d	o f	y e a r	 1  42 2 	  1327   	 117 	  97  	 170	   156  	 1709   1580 
t h e   r e c l a s s i fi c at i o n   in   2 0 0 9   w i t hin   g e r m an y   r e l a t e s   t o   fl i g h t   c r e w   ea r l y   r e t ir e m e n t   b e n e fi t s   w hi c h   w e r e   p r e v i o u s l y   d i s c l o s e d   in   ac c r u a l s 
t h e   a m oun t s   r e c og ni s e d   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t   f o r   t h e   y ea r s   e n d e d   3 0   s e pt e m b e r   2 0 1 0   a n d   3 0   s e pt e m b e r   2 0 0 9   f o r   eac h  
t e r r i t o r y   a r e   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m   £ m   £m 	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
c u r r e n t s e r v i c e  c o s t	 26	  20 	 7 	  3  	 4   4  	 37 	  27 
i n t e r e s t o n d e fi n e d  b e n e fi t   
p e n s i o n  s c h e m e  o b l i g a t i o n	 72	  69 	 5 	  5  	 7	  7  	 84 	  81 
e x p e c t e d r e t u r n  o n  d e fi n e d   
b e n e fi t  p e n s i o n  s c h e m e	 60   58	 – 	  –  	 6   6	 66  64
t o t a l	 38 	  31  	 12 	  8  	 5	  5  	 55 	  44   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  91
t h e s e   am oun t s   a r e   in c lu d e d   w i t hin   t h e   f o ll o w in g   e x p e n s e   in c o m e    c a t e g o r i e s   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m  £ m   £m	 £ m   £m	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
c o s t o f  s a l e s	 14	  10 	 6 	  2 	 2	  3 	 22 	  15 
a d m i n i s t r a t i v e e x p e n s e s	 12	  10 	 1 	  1 	 2	  1 	 15 	  12 
f i n a n c i a l e x p e n s e s	 72	  69 	 5 	  5 	 7	  7 	 84 	  81 
f i n a n c i a l i n c o m e	 60   58	 – 	  – 	 6   6	 66  64
t o t a l	 38 	  31 	 12	  8 	 5	  5 	 55 	  44 
t h e   a m oun t s   r e c og ni s e d   d ir e c t l y   in   e q ui t y   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   an d   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9   f o r   eac h   t e r r i t o r y  
a r e   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m  £ m   £m	 £ m   £m	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
c u m u l a t i v e l o s s e s   g a i n s    
b r o u g h t  f o r w a r d	 439 	   204   	 5	  8 	 24	  1 	 468 	  195  
l o s s e s  r e c o g n i s e d  d u r i n g t h e  y e a r	 15	  235   	 16	  13  	 11 	  23 	 42	  271 
e x c h a n g e  a d j u s t m e n t s	 –	  –   	 1  –  	 1  2  	 2   2  
c u m u l a t i v e 	 l os s e s 	 c a rr i e d 	 f o r w a r d 	 454 	  439   	 20	  5  	 34 	  24  	 508 	   468  
t r e n d   a n al y s i s   in f o r m a t i o n   in   r e s p e c t   o f   t h e   u k    g e r m an y   an d   o t h e r   t e r r i t o r i e s   i s   a s   f o ll o w s 
uk
  	 2 0 1 0 	   2 0 0 9   2 0 0 8   2 0 0 7    2 0 0 6 
u k	b a l a n c e 	s h e e t   	 £ m 	   £m   £m    £m    £m 
f a i r v a l u e o f  s c h e m e  a s s e t s   	 1073	   942    810    891   781
p r e s e n t  v a l u e o f  s c h e m e  l i a b i l i t i e s   	 1422   1327  1015   1144   1125
deficit   	 349  385   205   253  344
  	 2 0 1 0 	   2 0 0 9   2 0 0 8   2 0 0 7    2 0 0 6 
u k	e x p e r i e n c e	a d j u s t m e n t s   	 £ m 	   £m    £m   £m    £m 
e x p e r i e n c e g a i n   l o s s  o n s c h e m e  a s s e t s   	 39 	  37    178  7  11 
e x p e r i e n c e  l o s s   g a i n  o n  s c h e m e  l i a b i l i t i e s   	 54   272   184    95    108  
germany
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g e r m a n y 	b a l a n c e 	s h e e t   	 £ m 	   £m   £m    £m    £m  
f a i r v a l u e o f  s c h e m e  a s s e t s   	 –	  –   –   –   – 
p r e s e n t  v a l u e o f  s c h e m e  l i a b i l i t i e s   	 117   97   50  48  53
d e fi c i t    	 117  97   50   48   53
  	 2 0 1 0 	   2 0 0 9   2 0 0 8   2 0 0 7    2 0 0 6 
g e r m a n y 	e x p e r i e n c e	a d j u s t m e n t s   	 £ m 	   £m   £m   £m   £m  
e x p e r i e n c e  l o s s   g a i n  o n s c h e m e  l i a b i l i t i e s   	 16   13   8   11    1
other
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o t h e r	b a l a n c e 	s h e e t   	 £ m 	   £m   £m    £m   £m 
f a i r v a l u e o f  s c h e m e  a s s e t s   	 142	  137    114    103   91 
p r e s e n t  v a l u e o f  s c h e m e  l i a b i l i t i e s   	 170   156   113   97  87
 d e fi c i t   s u r p l u s   	 28   19  1   6   4 
  	 2 0 1 0 	   2 0 0 9   2 0 0 8   2 0 0 7    2 0 0 6 
o t h e r	e x p e r i e n c e 	a d j u s t m e n t s   	 £ m 	   £m   £m    £m   £m 
e x p e r i e n c e l o s s  o n s c h e m e  a s s e t s   	 –   3   15   1  –  
e x p e r i e n c e  l o s s   g a i n  o n s c h e m e  l i a b i l i t i e s   	 11   20  5   14    10  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
92  t u i t r a v e l  p l c  a n n u a l r e p o r t  a c c o u n t s  2 0 1 0
total
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a l l	t e r r i t o r i e s ’ 	b a l a n c e 	 s h e e t   	 £ m 	   £m   £m   £m    £m  
f a i r v a l u e  o f  s c h e m e  a s s e t s   	 1215	   1079    924    994   872 
p r e s e n t v a l u e o f  s c h e m e l i a b i l i t i e s   	 1709   1580   1178   1289   1265
d e fi c i t   	 494   501   254   295   393
  	 2 0 1 0 	   2 0 0 9   2 0 0 8   2 0 0 7    2 0 0 6 
a l l	t e r r i t o r i e s ’ 	e x p e r i e n c e 	a d j u s t m e n t s   	 £ m 	   £m   £m   £m   £m 
e x p e r i e n c e  g a i n   l o s s  o n s c h e m e  a s s e t s   	 39 	  34    193   8  11  
e x p e r i e n c e  l o s s   g a i n  o n s c h e m e  l i a b i l i t i e s   	 81   305   197    120   117 
t h e   m o v e m e n t   in   t h e   n e t   d e fi c i t   f o r   p e n s i o n s   i s   a s   f o ll o w s 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m   £ m   £m 	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
b a l a n c e  a t b e g i n n i n g  o f y e a r	 385    205   	 97    50 	 18	  2	 500 	  253 
r e c l a s s i fi c a t i o n	 –	  –  	 –	  18  	 – 	  –  	 – 	  18  
p r o v i s i o n s  m a d e  d u r i n g t h e  y e a r	 38    31 	 12    8  	 5	  5 	 55	  44 
p r o v i s i o n s  u s e d d u r i n g  t h e  y e a r	 89   86 	 2   3 	 7   8 	 98  97
a m o u n t s  a r i s i n g  f r o m  t r a n s f e r s  i n 	 – 	  –  	 – 	  1  	 –	  –  	 –	  1  
a c t u a r i a l  l o s s r e c o g n i s e d  i n e q u i t y	 15 	  235   	 16   13  	 11 	  23  	 42 	  271 
f o r e i g n e x c h a n g e	 –	  – 	 6  10  	 –	  – 	 6  10 
b a l a n c e 	a t 	e n d	o f 	y e a r	 349    385   	 117	  97 		 27 	  18  	 493	   500  
t h e   r e c l a s s i fi c at i o n   in   2 0 0 9   w i t hin   g e r m an y   r e l a t e s   t o   fl i g h t   c r e w   ea r l y   r e t ir e m e n t   b e n e fi t s   w hi c h   w e r e   p r e v i o u s l y   d i s c l o s e d   in   ac c r u a l s 
r e c o n c ili a t i o n   o f   d e fi n e d   b e n e fi t   o b li g at i o n s   a n d   s c h e m e   a s s e t s   t o   v a lu e s   r e c og ni s e d   in   t h e   b al an c e   s h e e t 
  uk   german y   other   t o t al
       
  2 0 1 0   2 0 0 9   2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9	 2 0 1 0   2 0 0 9
  £ m   £m  £ m   £m	 £ m   £m 	 £ m   £m             	 	 	 	 	 	 	 	 	 	 	 	
p r e s e n t  v a l u e o f f u n d e d  
d e fi n e d  b e n e fi t  o b l i g a t i o n s	 1421	   1326  	 –	  –  	 152 	  139  	 1573    1465 
f a i r v a l u e  o f s c h e m e  a s s e t s	 1073   942 	 –	  –  	 142  137 	 1215   1079
p r e s e n t  v a l u e o f u n f u n d e d   
d e fi n e d  b e n e fi t  o b l i g a t i o n s	 1	  1  	 117	  97 		 18 	  17  	 136	   115  
  349 	   385  	 117 	  97 	 28 	  19 	 494	   501 
u n r e c o g n i s e d  p a s t   s e r v i c e  c o s t	 – 	  – 	 –	  – 	 1  1	 1  1
r e c o g n i s e d  l i a b i l i t y  f o r d e fi n e d   
b e n e fi t  o b l i g a t i o n	 349 	   385   	 117	  97  	 27	  18  	 493	   500  
analysed as
r e t i r e m e n t  b e n e fi t   
n o n  c u r r e n t  a s s e t s	 –	  –  	 –	  –  	 1   1 	 1  1
r e t i r e m e n t  b e n e fi t   
c u r r e n t l i a b i l i t i e s	 –	  – 	 3 	  3  	 2	  –  	 5 	  3 
r e t i r e m e n t  b e n e fi t   
n o n  c u r r e n t l i a b i l i t i e s	 349 	   385   	 114	  94  	 26	  19  	 489 	   498  
t o t a l	 349	   385  	 117	  97  	 27 	  18  	 493	   500  
t h e   s e n s i t i v i t y   o f   t h e   f a ir   v a lu e   o f   t h e   d e fi n e d   p e n s i o n   d e fi c i t   t o   t h e   k e y   fi n a n c i a l   a n d   d e m og r a p hi c   a s s um p t i o n s   i s   illu s t r at e d   b e l o w 
      u k 	 g e r m a n y 	 o t h e r 	 	 t o t a l 	
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	 	 	 £ m 	 	 £ m 	 	 £ m 	 	 £ m	
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i n c r e a s e  t o d e fi c i t  o f  r e d u c i n g  d i s c o u n t r a t e  b y 0  2 5      	 68 		 8		 6 		 82	
i n c r e a s e  t o d e fi c i t  o f i n c r e a s i n g  a l l  l i f e  e x p e c t a n c i e s  b y  1  y e a r    	 40 		 5		 4 		 49  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  93
d share award schemes
t h e   c o m p a n y   o p e r at e s   f o ur   p r in c ip al   s h a r e   a w a r d   s c h e m e s   w hi c h   a r e   d e s i g n e d   t o   link   r e mun e r a t i o n   t o   t h e   f u t ur e   p e r f o r m an c e   o f   t h e   g r o up     
t h e   s c h e m e s   a r e   t h e   p e r f o r m an c e   s h a r e   pl a n    p s p     t h e   d e f e r r e d   a nn u a l   b o n u s   s c h e m e    d a b s     t h e   d e f e r r e d   a nn u a l   b o n u s   l o n g  t e r m 
in c e n t i v e   s c h e m e    d a bl i s    a n d   t h e   v a lu e   c r eat i o n   s y n e r g y   pl a n    v c s p       t h e   d a bl i s   s c h e m e   i s   d e s c r ib e d   b e l o w   a n d   t h e   o t h e r   t hr e e   s c h e m e s 
a r e   d e s c r ib e d   in   t h e   r e mun e r at i o n   r e p o r t   a l o n g   w i t h   t h e   r e l e v an t   v e s t in g   c r i t e r i a 
a t   3 0   s e pt e m b e r   2 0 1 0   t h e   s h a r e s   a ll o c at e d   an d   o u t s t an d in g   in   r e s p e c t   o f   o r d in ar y   s h a r e s    w e r e   a s   f o ll o w s 
shar e  a w ar d  scheme      	 n u m b e r 	 o f 	 s h a r e s 	   da t e due t o   v est 
p e r f o r m a n c e  s h a r e p l a n      	 1819513	   2 dec ember  2010  
      	 618658 	   19  dec ember   2010 
      	 2755536 	   19  dec ember   2010  
      	 131840    19  ma y   2011 
      	 1030546	   28  no v ember  2011 
      	 5930834	   28  no v ember   2011 
      	 2227585	   2  dec ember  2012  
      	 722799    19  mar ch 2013  
d e f e r r e d a n n u a l  b o n u s  s c h e m e       	 2621921	   19  dec ember   2010 
      	 4486020	   28  no v ember  2011 
      	 3952024	   2  dec ember   2012  
d e f e r r e d a n n u a l  b o n u s l o n g t e r m  i n c e n t i v e  s c h e m e       	 3797395	   2  dec ember   2012 
v a l u e c r e a t i o n  s y n e r g y p l a n      	 636178 	   28  no v ember  2010 
t o t a l      	 30730849   
t h e   n um b e r   o f   s h a r e   a w a r d s   at   t h e   b e g innin g   a n d   e n d   o f   t h e   y ea r   i s   a s   f o ll o w s 
        n u m b e r 	 o f 	 a w a r d s 	
        	 3 0 	 s e p t e m b e r 	 2 0 1 0 	
o u t s t a n d i n g  a t b e g i n n i n g  o f  t h e  y e a r  – e x c l u d i n g  d e f e r r e d s h a r e s          	 256146 86  
f o r f e i t e d   d u r i n g t h e y e a r          	  1  3 4 6  3 9 9 
e x e r c i s e d  d u r i n g t h e y e a r          	  6  3 5 0  6 0 7 
g r a n t e d  d u r i n g  t h e y e a r          	 1 2  8 1 3  1 6 9  
o u t s t a n d i n g 	a t 	t h e	e n d 	o f 	t h e 	y e a r	– 	e x c l u d i n g 	d e f e r r e d 	s h a r e s            	 3 0  7 3 0  8 4 9 	
in   ad d i t i o n   t o   t h e   a b o v e   s h a r e s    t h e r e   ar e   4 2 3  0 9 6    2 0 0 9    1  8 3 0  9 6 0    d e f e r r e d   s h a r e s   o u t s t an d in g   in   r e l a t i o n   t o   t h e   d e f e r r e d   a nn u a l   b o n u s  
s c h e m e      t h e s e   a r e   d u e   t o   v e s t   b e t w e e n   1 9   d e c e m b e r   2 0 1 0   a n d   2   d e c e m b e r   2 0 1 2 
d ur in g   t h e   y ea r   s o m e   o f   t h e   p ar t i c ip an t s   o f   t h e   d a b s   a n d   v c s p   a g r e e d   t o   e n t e r   in t o   a   j oint   e l e c t i o n   w i t h   t h e   c o m p a n y   p ur s u an t   t o   s e c t i o n 
4 3 1  1    o f   t h e   in c o m e   t a x    e ar nin g s   a n d   p e n s i o n s    a c t   2 0 0 3   in   r e s p e c t   o f   t h e s e   a w a r d s      c o n s e q u e n t l y    t h e   r e mun e r at i o n   c o m mi t t e e   a g r e e d   t o 
v e s t   t h e   v c s p   a w a r d s   ea r l y   a n d   r e l ea s e   s u f fi c i e n t   s h a r e s   t o   s at i s f y   t h e   t a x   li a bili t y   a r i s in g   f r o m   t h e   j oin t   e l e c t i o n      t h e   r e m a inin g   s h a r e s    w hi c h  
a r e   v e s t e d    a r e   h e l d   t og e t h e r   w i t h   t h e   d e f e r r e d   e l e m e n t   o f   t h e   d a b s   s c h e m e   a s   r e s t r i c t e d   s h a r e s   a n d   w ill   n o t   b e   r e l ea s e d   b e f o r e   t h e   t hir d  
a nni v e r s a r y   o f   t h e   o r i g in al   a w a r d   d a t e    d a b s   d e f e r r e d   s h a r e s   1  3 8 4  6 8 0   a n d   v c s p   a w a r d s   1  7 0 1  8 1 6       t h e s e   r e s t r i c t e d   s h a r e s   a r e   s ubj e c t   t o 
c l a w b ac k   c o n d i t i o n s   in   ac c o r d a n c e   w i t h   t h e   s c h e m e   r ul e s 
n o   m a t e r i al   a w a r d s   h a v e   b e e n   m ad e   t o   d a t e   un d e r   t h e   g r o up ’ s   h mr c  a p p r o v e d   s h a r e   in c e n t i v e   pl a n   w hi c h   i s   an   all  e m p l o y e e   s h a r e   p l a n 
t h e   f a ir   v a lu e   o f   s e r v i c e s   r e c e i v e d   in   r e t ur n   f o r   s h a r e s   a w a r d e d   d ur in g   t h e   y ea r   i s   m ea s ur e d   b y   r e f e r e n c e   t o   t h e   f a ir   v a lu e   o f   t h e   s h a r e s   a w a r d e d    
t h e   f a ir   v a lu e   at   t h e   d a t e   t h e   s h a r e s   w e r e   a w a r d e d   h a s   b e e n   e s t im at e d   u s in g   a   bin o mi a l   m e t h o d o l og y   f o r   a ll   s c h e m e s   e x c e pt   w h e r e   t h e r e   i s   a 
m a r k e t  b a s e d   p e r f o r m an c e   c o n d i t i o n   a t t ac h e d   t o   v e s t in g    in   w hi c h   c a s e   a   m o n t e   c ar l o   s imul at i o n   w a s   u s e d      t h e   p r in c ip al   a s s um p t i o n s   r e q uir e d 
b y   t h e s e   m e t h o d o l og i e s   w e r e   
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r i s k f r e e i n t e r e s t  r a t e    	 16   273   452475 
p ar t i c ip an t s   ar e   n o t   e n t i t l e d   t o   d i v i d e n d s   p r i o r   t o   v e s t in g      e x p e c t e d   v o l at ili t y   i s   b a s e d   o n   hi s t o r i c   v o l at ili t y   ad j u s t e d   f o r   c h an g e s   t o   f u t ur e 
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in c lu d e d   in   t h e   c h ar g e   f o r   e q ui t y   a w a r d s   m ad e   in   2 0 1 0   i s   £ 3 m    2 0 0 9    £ 3 m    r e l a t in g   t o   t h e   v c s p      t h e   s h a r e s   t hi s   c h ar g e   c o r r e s p o n d s   t o   w ill   b e 
a w a r d e d  r e l ea s e d   af t e r   t h e   d a t e   o f   t h e s e   ac c oun t s   
o f   t h e   £ 1 5 m    2 0 0 9    £ 1 7 m    t o t al   e m p l o y e e   e x p e n s e s   r e l a t in g   t o   s h a r e  b a s e d   s c h e m e s   in c ur r e d   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0    £ 4 m    
 2 0 0 9    £ 6 m    i s   in c lu d e d   w i t hin   s e p ar at e l y   d i s c l o s e d   i t e m s    n o t e   3    a s   r e l a t in g   t o   s p e c i fi c   r e mun e r a t i o n   in c ur r e d   f o r   p o s t  m e r g e r   in t e g r at i o n 
t h e   f u t ur e   e s t im at e d   e x p e n s e   f o r   s h a r e   a w a r d   s c h e m e s   o u t s t an d in g   at   3 0   s e pt e m b e r   i s 
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longterm incentives
d e fe r r e d 	 a n n u a l 	 b o n u s 	 l o n g  te r m 	 i nc e n t i v e 	 s c h e m e
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a n y   a nn u a l   p e r f o r m an c e   b o n u s   a w a r d   in t o   s h a r e s      m at c hin g   s h a r e s   m a y   a l s o   b e   a w a r d e d   up   t o   f o ur   t im e s   t h e   d e f e r r e d   a m oun t   an d   a r e   s ubj e c t 
t o   t h e   ac hi e v e m e n t   o f   s t r e t c hin g   p e r f o r m an c e   c o n d i t i o n s   o v e r   a   t hr e e  y ea r   p e r i o d      a w a r d s   o f   d e f e r r e d   a n d   m a t c hin g   s h a r e s   a r e   s ubj e c t   
t o   f o r f e i t ur e   c o n d i t i o n s   un t il   t h e   r e l ea s e   d a t e      t h e   ea r li e s t   p oin t   at   w hi c h   t h e   s h a r e s   a r e   e li g ib l e   f o r   r e l ea s e   i s   at   t h e   e n d   o f   t hr e e   y ea r s   
f o ll o w in g   d e f e r r al   
f o r   a w a r d s   o f   m a t c hin g   s h a r e s   m ad e   d ur in g   t h e   y ea r    n o   s h a r e s   w ill   v e s t   unl e s s   t h e   a nn u a l   a v e r a g e   o f   t h e   r at i o   o f   t h e   g r o up ’ s   r e t ur n   o n   in v e s t e d  
c api t a l    r o ic    t o   t h e   w e i g h t e d   a v e r a g e   c o s t   o f   c api t a l    w a c c    m e e t s   o r   e x c e e d s   o n e   o v e r   t h e   t hr e e  y ea r   p e r i o d      a   h ur dl e   o f   r o ic    b e in g   at   l ea s t 
e q u al   t o   w a c c    i s   u s e d   t o   e n s ur e   t h at   t h e   r e l e v an t   l o n g  t e r m   in c e n t i v e   a w a r d s   p a y   o u t   o nl y   w h e n   s h a r e h o l d e r   v a lu e   i s   b e in g   c r eat e d   o v e r   t h e  
p e r f o r m an c e   p e r i o d s      i f   t h e   r o ic  w a c c   h ur dl e   i s   m e t    s h a r e s   w ill   o nl y   v e s t   t o   t h e   e x t e n t   t o   w hi c h   t w o   f ur t h e r   p e r f o r m an c e   c o n d i t i o n s   a r e  
s at i s fi e d   o v e r   t h e   t hr e e  y ea r   p e r i o d   a s   f o ll o w s 
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•   up   t o   o n e   q u ar t e r   o f   t h e   m a t c hin g   s h a r e s   w ill   v e s t   b a s e d   o n   g r o w t h   in   t h e   g r o up ’ s   ea r nin g s   p e r   s h a r e    e p s     b e f o r e   a m o r t i s a t i o n   o f   m e r g e r  
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t o t a l        	 10	  11  
f ur t h e r   in f o r m a t i o n   i s   p r o v i d e d   in   t h e   a u d i t e d   s e c t i o n   o f   t h e   r e mun e r at i o n   r e p o r t   w hi c h   f o r m s   p ar t   o f   t h e s e   fi n a n c i a l   s t at e m e n t s  
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o p e r a t i n g  l e a s e i n c o m e   a i r c r a f t         	 54  18
o p e r a t i n g l e a s e  r e n t a l s   l a n d a n d b u i l d i n g s         	 162    163 
o p e r a t i n g l e a s e  r e n t a l s   a i r c r a f t  a n d o t h e r  e q u i p m e n t        	 417    408 
d e p r e c i a t i o n  o f p r o p e r t y  p l a n t a n d e q u i p m e n t         	 167 	  184  
a m o r t i s a t i o n  o f i n t a n g i b l e a s s e t s         	 94   103 
c h a r g e  f o r s h a r e  b a s e d p a y m e n t s          	 15	  17 
l o s s   p r o fi t   o n s a l e o f p r o p e r t y  p l a n t a n d e q u i p m e n t         	 1    12
l o s s   g a i n   o n f o r e i g n  c u r r e n c y  r e t r a n s l a t i o n        	 14 	  23 
i m p a i r m e n t  o f g o o d w i l l  a n d o t h e r  i n t a n g i b l e s        	 12	  7 
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o p e r at in g   l ea s e   r e n t a l s    l an d   a n d   b uil d in g s    in c lu d e s   £ 1 5 m    2 0 0 9    £ 8 m    o f   c o s t s   in c lu d e d   in   s e p ar at e l y   d i s c l o s e d   i t e m s    n o t e   3    a s   p r o v i s i o n s   
f o r   o n e r o u s   l ea s e s    p r im a r il y   r e l a t e d   t o   v ac a t e d   p r o p e r t i e s   in   t h e   u k   a n d   ir e l a n d      in   ad d i t i o n   t o   t h e   o p e r a t in g   l ea s e   r e n t a l s   d i s c l o s e d   a b o v e  
c h ar g e s   o f   £ 1 4 9 m    2 0 0 9    £ 7 1 m    w e r e   in c ur r e d   in   r e s p e c t   o f   h o t e l   ac c o m m o d at i o n   r e n t a l s   w hi c h   a r e   d i s c l o s e d   a s   o p e r at in g   l ea s e s   un d e r   
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a    t h e   e m e r g e n c y   b u d g e t   o n   2 2   j un e   2 0 1 0   a nn oun c e d   t h at   t h e   u k   c o r p o r at i o n   t a x   r at e   w ill   r e d u c e   f r o m   2 8    t o   2 4    o v e r   a   p e r i o d   o f   f o ur   y ea r s  
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e f f e c t   o f   t h e   a nn oun c e d   f ur t h e r   3    r a t e   r e d u c t i o n    a l t h o u g h   t hi s   s h o ul d   f ur t h e r   r e d u c e   t h e   g r o up ’ s   f u t ur e   c ur r e n t   t a x   c h ar g e   a n d   r e d u c e   t h e 
g r o up ’ s   d e f e r r e d   t a x   li a bili t i e s  a s s e t s   ac c o r d in g l y 
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t a x   a u t h o r i t i e s   f o r m a ll y   n o t i fi e d   t h e   g r o up   t h at   t h e y   d i s a g r e e   w i t h   t h e   s p ani s h   c o r p o r at e   in c o m e   t a x   t r eat m e n t   o f   t w o   s e p ar at e   t r a n s ac t i o n s  
t h at   w e r e   un d e r t a k e n   d ur in g   t h e   p e r i o d   un d e r   a u d i t      t h e   g r o up   h a s   h ad   e x t e n s i v e   d i s c u s s i o n s   w i t h   t h e   s p ani s h   t a x   a u t h o r i t i e s   t o   e x p l a in   t h e 
n at ur e   o f   t h e   t r a n s ac t i o n s   a n d   s e e k   t o   a g r e e   t h e   s p ani s h   t a x   t r eat m e n t   o f   t h e s e     
t h e   o r i g in al   t a x   d e d u c t i o n   a r i s in g   f r o m   t h e   t r a n s ac t i o n s   b e in g   c h all e n g e d   b y   t h e   s p a ni s h   t a x   a u t h o r i t i e s   w a s   a p p r o x im at e l y   € 2 8   milli o n      in   p r i o r  
y ea r s    t h e   d ir e c t o r s   r e c o r d e d   a   t a x   c r e d i t o r   f o r   t h e ir   b e s t   e s t im at e   o f   t h e   t a x   t h at   t h e y   b e li e v e   m a y   b e c o m e   p a y ab l e   in   t h e   e v e n t   t h at   t h e 
s p ani s h   t a x   a u t h o r i t i e s   a r e   s u c c e s s f ul   in   t h e ir   c h all e n g e      t hi s   c r e d i t o r   c o n t in u e s   t o   b e   h e l d   a t   3 0   s e pt e m b e r   2 0 1 0    w i t hin   in c o m e   t a x e s   p a y ab l e     
in   c o n t in uin g   t o   c h all e n g e   t h e s e   t r a n s ac t i o n s    t h e   t a x   a u t h o r i t i e s   m a y   s e e k   t o   p ur s u e   a   j u d i c i al   p r o c e s s   w i t h   t h e   p o s s ibili t y   o f   in t e r e s t   a n d 
p e n al t i e s    t h e   o u t c o m e   o f   w hi c h   at   t hi s   s t a g e   i s   n o t   c e r t a in      o n   t h e   b a s i s   o f   in d e p e n d e n t   l e g al   ad v i c e   t a k e n    t h e   g r o up   fi r m l y   b e li e v e s   t h at   in    
t h e   e v e n t   o f   a n y   s u c h   c a s e    i t   c o ul d   b e   d e f e n d e d   r o b u s t l y      i t   i s   lik e l y   t h at   t h e   r e s o lu t i o n   o f   t hi s   m a t t e r   w ill   t a k e   a   n um b e r   o f   y ea r s   t o   r eac h   a   
fi n a l   c o n c lu s i o n 
c    o t h e r   f ac t o r s   w hi c h   m a y   af f e c t   t h e   f u t ur e   t a x   c h ar g e   in c lu d e   t h e   mi x   o f   j ur i s d i c t i o n s   w i t h   d i f f e r e n t   t a x   r at e s   in   w hi c h   p r o fi t s   a n d   l o s s e s   a r i s e   
c h an g e s   in   t a x   r at e s   an d   t h e   p o t e n t i a l   f u t ur e   r e c og ni t i o n   o f   t a x   l o s s e s   f o r   w hi c h   a   d e f e r r e d   t a x   a s s e t   h a s   n o t   b e e n   r e c og ni s e d   a t   t h e   y ea r  e n d 
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a   d i s c o n t in u e d   o p e r at i o n   a s   i t   w a s   ac q uir e d   e x c lu s i v e l y   w i t h   a   v i e w   t o   i t s   s ub s e q u e n t   r e s a l e      t h e   b u s in e s s   i s   a l s o   p r e s e n t e d   a s   a   d i s p o s a l   g r o up 
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d i v i d e n d s 	r e l a t i n g	t o 	t h e 	y e a r 	e n d e d 	3 0	s e p t e m b e r 	2 0 0 9
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f i n a l  d i v i d e n d  p a i d a p r i l  2 0 1 0        	 77 		 85	  – 
      	 107 		 118 	   –  
t h e   in t e r im   d i v i d e n d   in   r e s p e c t   o f   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   o f   3  2 p   p e r   s h a r e   w a s   p a i d   o n   1   o c t o b e r   2 0 1 0   an d   t hi s   d i v i d e n d   o f   £ 3 6 m  
w ill   b e   r e c og ni s e d   a s   a   d e d u c t i o n   f r o m   e q ui t y   in   t h e   y ea r   e n d in g   3 0   s e pt e m b e r   2 0 1 1 
s ub s e q u e n t   t o   t h e   b al a n c e   s h e e t   d a t e    t h e   d ir e c t o r s   h a v e   p r o p o s e d   a   fi n a l   d i v i d e n d   o f   7  8 p   p e r   s h a r e    2 0 0 9    fi n a l   d i v i d e n d   o f   7  7 p   p e r   s h a r e   
p a y ab l e   o n   1   m a rc h   2 0 1 1   t o   t h e   h o l d e r s   o f   r e l e v a n t   s h a r e s   o n   t h e   r e g i s t e r   at   4   f e b r u ar y   2 0 1 1      t h e   fi n a l   p r o p o s e d   d i v i d e n d   a m oun t s   t o   £ 1 2 2 m  
a n d   w ill    af t e r   a p p r o v a l   b y   s h a r e h o l d e r s    b e   r e c og ni s e d   in   t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   f o r   t h e   y ea r   e n d in g   3 0   s e pt e m b e r   2 0 1 1      t h e   fi n a l 
o r d in ar y   d i v i d e n d   o f   7  8 p   p e r   s h a r e    t og e t h e r   w i t h   t h e   in t e r im   d i v i d e n d   o f   3  2 p   p e r   s h a r e    m a k e s   a   t o t a l   d i v i d e n d   o f   1 1  0 p   p e r   s h a r e   r e l a t in g   t o   t h e 
y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0     
a   d i v i d e n d   r e in v e s t m e n t   p l a n   i s   in   o p e r a t i o n      t h o s e   s h a r e h o l d e r s   w h o   h a v e   n o t   e l e c t e d   t o   p ar t i c ip a t e   in   t hi s   p l a n    an d   w h o   w o ul d   lik e   t o 
p ar t i c ip a t e   w i t h   r e s p e c t   t o   t h e   2 0 1 0   fi n a l   d i v i d e n d    m a y   d o   s o   b y   c o n t ac t in g   e q uini t i   d ir e c t l y   o n   0 8 7 1   3 8 4   2 0 3 0      t h e   l a s t   d a y   f o r   e l e c t i o n   f o r   t h e 
fi n a l   p r o p o s e d   d i v i d e n d   i s   1 5   f e b r u ar y   2 0 1 1   a n d   a n y   r e q u e s t s   s h o ul d   b e   m ad e   in   g o o d   t im e   a h ead   o f   t h at   d a t e  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c  a n n u a l r e p o r t    a c c o u n t s  2 0 1 0  99
10 intangible assets
      c u s t o m e r    c o m p u t e r      s o f t w a r e  i n     
  g o o d w i l l    b r a n d s    r e l a t i o n s h i p s    s o f t w a r e    l i c e n c e s   d e v e l o p m e n t   o t h e r    t o t a l  
  £ m   £ m    £ m   £ m   £ m    £ m   £ m    £ m 
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a t 1 o c t o b e r  2 0 0 8   4194    415    203    309    57    18    138    5334  
a d d i t i o n s   3   –   –    55    4    23    –   85 
a c q u i s i t i o n  t h r o u g h  
b u s i n e s s  c o m b i n a t i o n s   62    21   –    –    –    –   –   83 
d i s p o s a l s   –    –    1   15   2   –    4   22
r e c l a s s i fi c a t i o n  t o a s s e t s  
h e l d  f o r  s a l e   17   21   14   3   4   –    1   60
f o r e i g n  e x c h a n g e  288   26    23    19    5    –    4    365 
r e c l a s s i fi c a t i o n  o f a s s e t c l a s s  –    –    –    30    18   12   –    –  
a t 3 0 s e p t e m b e r 2 0 0 9   4530   441   211    395   42   29    137   5785 
a d d i t i o n s  1   –    –   27    1    14    1   44 
a c q u i s i t i o n  t h r o u g h  
b u s i n e s s  c o m b i n a t i o n s   31    13    1   –    –    –   27    72  
d i s p o s a l s  6   –    –    18   2   –    –     26
r e c l a s s i fi c a t i o n  t o a s s e t s   
h e l d  f o r s a l e   –     –     –     –     2    –    –     2  
f o r e i g n  e x c h a n g e   80  7  12  2   2   1   2  106
r e c l a s s i fi c a t i o n  o f a s s e t c l a s s  –     –    –    20    5   15   –    –  
a t	3 0 	s e p t e m b e r	2 0 1 0	 4  4 7 6 		 4 4 7 		 2 0 0 		 42 2		 3 6 		 2 7		 1 6 3 		 5  7 7 1 	
a m o r t i s a t i o n 	a n d	i m p a i r m e n t 	l o s s e s
a t  1 o c t o b e r  2 0 0 8  555   23   16   218   35   –    58   905
a m o r t i s a t i o n  f o r t h e  y e a r   –    25   17   47   4   –    10   103
i m p a i r m e n t l o s s   7  –    –   –   –   –   –   7
d i s p o s a l s   –    –    –    14    2    –    3    19  
r e c l a s s i fi c a t i o n  t o a s s e t s  
h e l d  f o r  s a l e   –    2    2    2    2    –    –    8  
f o r e i g n  e x c h a n g e  41   2   3   14   –    –    –    60
r e c l a s s i fi c a t i o n  o f  a s s e t  c l a s s  –    –    1   15   16    –    –    –  
a t 3 0  s e p t e m b e r  2 0 0 9   603   48   35   278   19   –    65   1048
a m o r t i s a t i o n  f o r t h e y e a r   –    25    13   47   2   –    7   94
i m p a i r m e n t l o s s   12   –   –   –   –   –    –    12
d i s p o s a l s   –    –    –    16    2    –    –    18  
r e c l a s s i fi c a t i o n  t o a s s e t s   
h e l d f o r s a l e   –    –    –    –    1   –    –    1
f o r e i g n  e x c h a n g e   20    1     3    2    –    –    1    25  
r e c l a s s i fi c a t i o n  o f a s s e t c l a s s   –    –   –    5  5    –   –   – 
a t 	 3 0 	s e p t e m b e r	2 0 1 0   5 9 5 	  7 2 	  4 5  		  3 1 2 	  1 5 	 – 		  7 3 	  1  1 1 2 
n e t	 b o o k 	v a l u e                
a t 1 o c t o b e r 2 0 0 8  3639    392    187    91    22    18    80    4429  
a t 3 0 s e p t e m b e r 2 0 0 9   3927    393    176    117    23    29    72    4737  
a t	3 0	s e p t e m b e r 	2 0 1 0   3  8 8 1 		 3 7 5 		 1 5 5 		 1 1 0 		 2 1		 2 7 		 9 0 		 4  6 5 9  
a m o r t i s at i o n   o f   in t a n g ib l e   a s s e t s   i s   r e c og ni s e d   w i t hin   c o s t   o f   s a l e s   in   t h e   c o n s o li d at e d   in c o m e   s t at e m e n t 
a m o r t i s at i o n   o f   b u s in e s s   c o m bin at i o n   a n d   o t h e r   in t a n g ib l e s   c o m bin e d   w i t h   d e p r e c i at i o n   o f   p r o p e r t y    p l a n t   an d   e q uip m e n t   i s   d i s c l o s e d   b y  
s e g m e n t   in   n o t e   2      im p a ir m e n t   o f   in t a n g ib l e   a s s e t s   b y   s e g m e n t   i s   a l s o   d i s c l o s e d   in   n o t e   2  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
100   t u i t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0
t h e   a g g r e g a t e   c ar r y in g   a m oun t s   o f   g o o d w ill   a ll o c at e d   t o   eac h   p r in c ip al   c a s h   g e n e r at in g   uni t    c g u    a r e   a s   f o ll o w s 
    3 0 	 s e p t e m b e r    3 0 s e p t e m b e r  
    2 0 1 0 	   2 0 0 9  
sect or   c gu  £ m 	   £m  
m a i n s t r e a m  – n o r t h e r n r e g i o n   uk  and  ir eland    1514   1507 
m a i n s t r e a m  – c e n t r a l e u r o p e   german y   387   406  
a c c o m m o d a t i o n   d e s t i n a t i o n s  ac c ommoda tion   destina tions  b2b   322   309 
m a i n s t r e a m  – n o r t h e r n  r e g i o n   nor dic s  273   273  
m a i n s t r e a m  – w e s t e r n  e u r o p e   f r anc e  228   230 
a c c o m m o d a t i o n   d e s t i n a t i o n s   ac c ommoda tion    destina tions b2c  218   209  
a c c o m m o d a t i o n   d e s t i n a t i o n s  ac c ommoda tion   destina tions specialist  159   153 
a c t i v i t y   st udent   143   110  
a l l s e c t o r s   multiple c gus    729   787  
t o t a l	g o o d w i l l     3973   3984    
o f w h i c h      
g o o d w i l l i n c l u d e d  w i t h i n i n t a n g i b l e  a s s e t s     3881   3927   
g o o d w i l l i n c l u d e d  i n  a s s e t s  h e l d f o r s a l e  n o t e 1 8      3   21   
g o o d w i l l i n c l u d e d  w i t h i n j o i n t  v e n t u r e s a n d a s s o c i a t e s   n o t e 1 2    89   36   
    3973   3984  
g o o d w ill   in c lu d e d   in   a s s e t s   h e l d   f o r   s a l e   r e l a t e s   t o   j e t 4 y o u   at   3 0   s e pt e m b e r   2 0 1 0   a n d   j e t 4 y o u   a n d   t h e   m a in s t r ea m   c an ad i a n   b u s in e s s   at   
3 0   s e pt e m b e r   2 0 0 9 
o n c e   e v e r y   y ea r    o r   m o r e   f r e q u e n t l y   i f   e v e n t s   o r   a   c h an g e   in   t h e   e c o n o mi c   e n v ir o nm e n t   in d i c at e   a   r i s k   o f   im p a ir m e n t    t h e   g r o up   a s s e s s e s   t h e 
r e c o v e r a b l e   a m oun t   o f   g o o d w ill   a ll o c at e d   t o   i t s   c g u s   a s   r e q uir e d   b y   i a s   3 6    im p a ir m e n t   o f   a s s e t s      t h e   r e c o v e r a b l e   v a lu e   o f   g o o d w ill   f o r   a ll   
c g u s   h a s   b e e n   d e t e r min e d   t o   b e   v a lu e   in   u s e  
t h e   mul t ip l e   c g u s   n o t   s e p ar at e l y   li s t e d   a b o v e   d o   n o t   in d i v i d u a ll y   r e p r e s e n t   m o r e   t h a n   3    o f   t o t a l   g r o up   g o o d w ill      a ll   c g u s   h a v e   b e e n   t e s t e d  
f o r   im p a ir m ent 
i a s   3 6   r e q uir e s   t h at   im p a ir m ent   t e s t s   a r e   c ar r i e d   o u t   o n   c g u s    f o ll o w in g   t h e   l e v e l   a t   w hi c h   t h e   g r o up ’ s   m a n a g e m e n t   m ea s ur e s   r e t ur n s    
o n   o p e r at i o n s 
t h e   c al c ul a t i o n   o f   r e c o v e r a b l e   v a lu e   u s e s   t h e   f o ll o w in g   a s s um p t i o n s 
•     c a s h   fl o w   p r oj e c t i o n s   b a s e d   o n   t h e   g r o up ’ s   l a t e s t   a p p r o v e d   fi v e  y ea r   b u s in e s s   p l a n    
•     w h e r e   in f o r m a t i o n   w a s   r e c e i v e d   c o n c e r nin g   t h e   un d e r l y in g   o p e r at in g   p r o fi t   o f   a   c g u   a f t e r   t h e   fi n a li s at i o n   o f   t h e   fi v e  y ea r   b u s in e s s   p l a n     
c a s h   fl o w   p r oj e c t i o n s   w e r e   r e  r un   b a s e d   o n   t h e   r e v i s e d   in f o r m a t i o n   t o   o bt a in   a   m o r e   up  t o  d at e   v a lu e   in   u s e 
•     c a s h   fl o w s   b e y o n d   t h e   p l a n   p e r i o d   ar e   e x t r a p o l a t e d   u s in g   a n   in fl at i o n ar y   o nl y   g r o w t h   r at e   o f   b e t w e e n   1    an d   3       t h e   g r o w t h   r at e   u s e d   i s 
l e s s   t h a n   o r   e q u al   t o   t hir d   p ar t y   e s t im at e s   o f   t h e   m e d i um  t e r m   gd p   g r o w t h   r at e s   o f   t h e   k e y   g e og r a p hi c   m a r k e t s   in   w hi c h   t h e   s p e c i fi c   c g u  
o p e r at e s   at   t h e   t im e   t h e   p r oj e c t i o n s   a r e   p r e p a r e d     
•     c a s h   fl o w s   a r e   d i s c o un t e d   u s in g   t h e   g r o up ’ s   w e i g h t e d   a v e r a g e   c o s t   o f   c api t a l    w a c c    ad j u s t e d   a s   ap p r o p r i at e   f o r   b u s in e s s   s p e c i fi c   f ac t o r s    
o f   s e c t o r   r i s k    b u s in e s s   s i z e   a n d   g e og r a p hi c   r i s k     
•     s in c e   d e t e r min a t i o n   o f   an   a p p r o p r i a t e   g r o up   w a c c   w a s   j u d g e m e n t al    s e n s i t i v i t i e s   a l s o   ad dr e s s e d   h o w   in c r ea s e s   in   t h e   b a s e   g r o up   w a c c  
mi g h t   im p ac t   t h e   r e s ul t s   o f   t h e   im p a ir m e n t   t e s t s      t h e   g r o up ’ s   w a c c   w a s   b a s e d   o n   a   c api t a l   a s s e t   p r i c in g   m o d e l   c al c ul a t i o n   u s in g   a   mi x t ur e   
o f   inh ou s e   d a t a   a n d   e x t e r n a l   inp u t s   p r o v i d e d   b y   t hir d   p ar t y   fi n a n c i a l   in s t i t u t i o n s 
•     c e n t r al   g r o up   o v e r h ead s   a r e   b o r n e   in   f ull   b y   c g u s   a n d   a r e   a ll o c at e d   p r o   r at a   t o   t h e   c g u ’ s   un d e r l y in g   o p e r at in g   p r o fi t   
•     in   2 0 0 9   t h e   a c c o m m o d a t i o n      d e s t in a t i o n s   s e c t o r   w a s   p r e s e n t e d   a s   o n e   c g u   a s   t h e r e   w a s   in s u f fi c i e n t   in f o r m a t i o n   a v a il ab l e   t o   a ll o c at e 
g o o d w ill   b e t w e e n   t h e   v a r i ou s   c a s h   g e n e r at in g   s e c t i o n s   o f   t h e   b u s in e s s      s u f fi c i e n t   in f o r m a t i o n   i s   n o w   a v a il ab l e   f o r   a   m ea nin g f ul   a ll o c at i o n   
a n d   t h e   2 0 0 9   c o m p ar at i v e s   h a v e   b e e n   am e n d e d   t o   s h o w   t h e   g o o d w ill   a ll o c at i o n   o n   a   s imil a r   b a s i s   t o   t h at   u s e d   in   2 0 1 0      n o   im p a ir m e n t s    
h a v e   a r i s e n   a s   a   r e s ul t   o f   t hi s   c h an g e 
t h e   c al c ul a t i o n   o f   r e c o v e r a b l e   a m oun t   i s   s e n s i t i v e   t o   f o r e c a s t   f u t ur e   ea r nin g s   an d    p ar t i c ul a r l y    t h e   d i s c o un t   r at e s   u s e d 
•     a   p e rc e n t a g e   d e c r ea s e   o f   up   t o   2 0    in   f u t ur e   p l a nn e d   ea r nin g s   f o r   b o t h   t h e   y ea r   e n d in g   3 0   s e pt e m b e r   2 0 1 1   a n d   t h e   y ea r   e n d in g   
3 0   s e pt e m b e r   2 0 1 2   w o ul d   s t ill   r e s ul t   in   s i g ni fi c a n t   h ead r o o m   p o s i t i o n s   f o r   a ll   t h e   p r in c ip al   c g u s   d e t a il e d   in   t h e   t a b l e   a b o v e 
•     in   ad d i t i o n   t o   t h e   d e c r ea s e d   ea r nin g s   n o t e d   a b o v e    a n   in c r ea s e   f o r   t h e   p r in c ip al   c g u s   d e t a il e d   a b o v e   o f   a   1   p e rc e n t a g e   p oin t   in   t h e   d i s c o un t  
r at e s   u s e d   w o ul d   n o t   c h an g e   t h e   c o n c lu s i o n   t h at   t h e   c ar r y in g   v a lu e   o f   g o o d w ill   i s   s up p o r t e d   b y   i t s   r e c o v e r a b l e   a m oun t 
•     in   ad d i t i o n   t h e   s e n s i t i v i t i e s   d i s c l o s e d   im m e d i at e l y   a b o v e   d o   n o t   t a k e   ac c o un t   o f   a n y   mi t i g at in g   ac t i o n   t h at   m a n a g e m e n t   w o ul d   t a k e   s h o ul d  
ea r nin g s   d e c r ea s e 
•     o t h e r   k e y   a s s um p t i o n s   a r e   in   r e s p e c t   o f   t h e   s h o r t   an d   m e d i um  t e r m   p o s t  ac q ui s i t i o n   ea r nin g s   o f   ac q uir e d   o p e r at i o n s      t h e   f o r e c a s t   ea r nin g s 
o f   t h e s e   n e w l y  ac q uir e d   b u s in e s s e s   a r e   inh e r e n t l y   m o r e   j u d g e m e n t al   o v e r   t h e s e   t im e f r a m e s  wwwtuitravelplccom
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t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  101
t h e   p r e  t a x   d i s c o un t   r at e s   u s e d   f o r   eac h   c g u   o r   g r o up   o f   s imil a r   c g u s   a r e   a s   f o ll o w s 
  c a s h  g e n e r a t i n g  u n i t s   p r e  t a x 	 d i s c o u n t 	 r a t e 	 u s e d   p r e  t a x  d i s c o u n t  r a t e u s e d
sect or    c gus   3 0 	 s e p t e m b e r 	 2 0 1 0 	      30  sept ember  2009 
m a i n s t r e a m – n o r t h e r n r e g i o n   uk     ir eland    11  10
m a i n s t r e a m  – c e n t r a l e u r o p e  german y   11   11
m a i n s t r e a m – n o r t h e r n r e g i o n   nor dic s   11  11
m a i n s t r e a m – w e s t e r n  e u r o p e   f r anc e   11   11
m a i n s t r e a m – n o r t h e r n r e g i o n   canada  11   10
  other   c gus  1112   11
s p e c i a l i s t   e m e r g i n g m a r ke t s   eur opean  specialist businesses   1112   12
  american  specialist businesses   11115   125
  r ussia   14  14
a c t i v i t y  marine  busi nesses   12   1213
  sport  adv ent ur e st udent    
  and ski businesses  1112   13
a c c o m m o d a t i o n   d e s t i n a t i o n s   ac c ommoda tion   destina tions    13   125
   m u l t i p l e   i n d i v i d u a l   c g u s
      g o o d w i l l   i n   r e s p e c t   o f   c a n a d a   a n d   r u s s i a   i s   i n c l u d e d   w i t h i n   t h e   g r o u p ’ s   e q u i t y   i n v e s t m e n t   i n   j o i n t   v e n t u r e s   a n d   a s s o c i a t e s 
e x c e p t   f o r   t h e   im p a ir m e n t s   r e f e r r e d   t o   b e l o w   a n d   b a s e d   o n   t h e   c al c ul a t i o n s   un d e r t a k e n    t h e   d ir e c t o r s   c o n s i d er   t h at   t h e   r e c o v e r a b l e   a m oun t   
o f   g o o d w ill   in   eac h   c g u   e x c e e d s   i t s   c ar r y in g   v a lu e  
impairment charges
i f   t h e   r e c o v e r a b l e   am oun t   o f   a   c g u   i s   e s t im at e d   t o   b e   l e s s   t h a n   t h e   t o t al   o f   i t s   o p e r at in g   fi x e d   a s s e t s    g o o d w ill   an d   o t h e r   in t a n g ib l e s    a n 
im p a ir m e n t   l o s s   i s   r e c og ni s e d   im m e d i at e l y   in   t h e   in c o m e   s t at e m e n t      t h e   im p a ir m ent   l o s s   i s   a ll o c at e d   fi r s t   t o   r e d u c e   t h e   c ar r y in g   a m oun t   o f   a n y  
g o o d w ill   a ll o c at e d   t o   t h e   c g u   a n d   t h e n   t o   t h e   o t h e r   a s s e t s   o n   a   p r o   r at a   b a s i s      t h e   im p a ir m e n t   l o s s   r e c og ni s e d   i s   e q u al   t o   t h e   d i f f e r e n c e  
b e t w e e n   t h e   n e t   b o o k   v a lu e   a n d   t h e   r e c o v e r a b l e   am oun t 
a t   3 0   s e pt e m b e r   2 0 1 0    t h e   e ur o p ean   s p e c i a li s t   d i v i s i o n   o f   t h e   s p e c i a li s t      e m e r g in g   m a r k e t s   s e c t o r   h ad   8   c g u s   c o r r e s p o n d in g   e i t h e r   t o   a n  
o p e r at i o n   in   a   p ar t i c ul ar   c o un t r y    o r   a   t y p e   o f   s p e c i a li s t   l e i s ur e   t r a v e l   o r   p r o d u c t 
in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   t h e r e   w a s   a   £ 1 2 m   im p a ir m e n t   o f   g o o d w ill   r e l a t in g   t o   t h e   i t a li a n    £ 7 m    an d   s p ani s h    £ 5 m    s p e c i a li s t   c g u s 
a s   a   r e s ul t   o f   a   d e t e r i o r at i o n   in   f o r e c a s t   t r ad in g   r e s ul t s   c o m p ar e d   t o   t h e   p r i o r   y ea r      t h e   im p a ir m e n t   t e s t   f o r   b o t h   o f   t h e s e   c g u s   w a s   b a s e d   o n 
t h e   v a lu e   in   u s e   c al c ul a t i o n      b o t h   im p a ir m e n t   c h ar g e s   a r e   d i s c l o s e d   w i t hin   admini s t r at i v e   e x p e n s e s   a n d   s h o w n   s e p ar at e l y   o n   t h e   f ac e   o f   t h e 
c o n s o li d at e d   in c o m e   s t at e m e n t 
t h e   im p a ir m e n t   h a s   a r i s e n   s in c e   t h e   c a s h   fl o w   m o d e l   b a s e d   o n   t h e   c ur r e n t   5  y ea r   pl a n   a n d   o t h e r   c r i t e r i a   d e s c r ib e d   a b o v e   d o e s   n o t   s up p o r t    
t h e   c ar r y in g   a m oun t   o f   g o o d w ill   a n d   all   o t h e r   a s s e t s   f o r   t h e s e   t w o   c g u s      t h e   p r e  t a x   d i s c o un t   r at e   u s e d   f o r   t h e s e   t w o   b u s in e s s e s   w a s   1 1    f o r  
i t a l y   a n d   1 2    f o r   s p a in    2 0 0 9    b o t h   c o un t r i e s   1 2     a n d   t h e   g r o w t h   r at e s   b e y o n d   t h e   5  y ea r   pl a n   u s e d   w e r e   1  2     2 0 0 9    0  8     f o r   t h e   i t a li a n  
s p e c i a li s t   c g u   a n d   1  9     2 0 0 9    1  7     f o r   t h e   s p ani s h   s p e c i a li s t   c g u 
in   p r i o r   y ea r s    im p a ir m e n t   c h ar g e s   h a v e   a r i s e n   a s   a   r e s ul t   o f   t h e   g r o up ’ s   r e s t r u c t ur in g   p o s t   b u s in e s s   c o m bin at i o n      in   2 0 0 9    w i t hin   t h e   a c t i v i t y  
s e c t o r    a n   im p a ir m e n t   c h ar g e   o f   £ 7 m   ar o s e   f o ll o w in g   t h e   c l o s ur e   o f   t h e   m a j o r i t y   o f   s un s a il   c lub s ’   o p e r at i o n s   d ur in g   t h at   fi n a n c i a l   y ea r       
t h e   g o o d w ill   im p a ir m e n t   c h ar g e   w a s   c al c ul a t e d   b a s e d   o n   t h e   v a lu e   in   u s e   o f   t h e   r e m a inin g   b u s in e s s   u s in g   a   d i s c oun t   r at e   o f   1 3   financial statements
notes to the consolidated financial statements c o n t i n u e d
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a t 1 o c t o b e r 2 0 0 8    329    170    881    –    172    411    1963  
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a c q u i s i t i o n s  t h r o u g h b u s i n e s s  c o m b i n a t i o n s     2    74    –    –    1    6    83  
t r a n s f e r s     –   –   –   80    –   22   102 
a d d i t i o n s     16    14    31    33    5    53    152  
d i s p o s a l s     30   22   75  7  14  25  173
r e c l a s s i fi c a t i o n s     5    1    11    –    3   14   –  
t r a n s f e r r e d  t o   f r o m  a s s e t s h e l d f o r s a l e     19  4  32    –   1   1   9 
a t 3 0 s e p t e m b e r 2 0 0 9    339   241   967   108   168    495   2318 
f o r e i g n  e x c h a n g e     10  2  40   5   1   15  71
a c q u i s i t i o n s  t h r o u g h  b u s i n e s s c o m b i n a t i o n s    2   –   –    –    –   3    5 
a d d i t i o n s    26    131    32    36    8    48    281  
d i s p o s a l s     8   17   49   –     13   35   122
r e c l a s s i fi c a t i o n s     3    1   24    2   11    35   –  
t r a n s f e r r e d f r o m  a s s e t s h e l d f o r  s a l e     2    –     –    –    –     –    2  
a t 	3 0	s e p t e m b e r 	2 0 1 0    354		 352	 934	 	 137 		 175		 461		 2413  
d e p r e c i a t i o n	a n d	i m p a i r m e n t              
a t 1 o c t o b e r  2 0 0 8     170   47   416   –    136   268   1037
f o r e i g n  e x c h a n g e     19   3  41  –   7  26   96
a c q u i s i t i o n s  t h r o u g h b u s i n e s s c o m b i n a t i o n s     1   36   –    –    –    4   41
p r o v i d e d  i n  t h e y e a r    17   16   99   –    14   38   184
d i s p o s a l s     18    12    66    –    11    22    129  
i m p a i r m e n t s     1  –   124  –   –   –   125
r e c l a s s i fi c a t i o n s     –    3    2   –    1   –    –  
t r a n s f e r r e d  t o   f r o m   a s s e t s  h e l d f o r s a l e    15    –    17   –    1    1    –  
a t 3 0 s e p t e m b e r 2 0 0 9    175   87   633   –    146   313   1354
f o r e i g n e x c h a n g e     4    1    27    –    1   6    37   
p r o v i d e d  i n t h e y e a r    16  19  83  –    12  37   167
d i s p o s a l s     7    9    41    –    12    30    99  
i m p a i r m e n t s     –     15   –     –    –    –    15
r e c l a s s i fi c a t i o n s     2   –    –    –    7   9   –  
t r a n s f e r r e d f r o m  a s s e t s  h e l d f o r s a l e    1   –    –     –    –    –    1
a t	3 0	s e p t e m b e r 	2 0 1 0     183	 111	 648	 – 		 154	 305	 1401
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a t   1 o c t o b e r 2 0 0 8     159    123    465    –    36    143    926  
a t  3 0 s e p t e m b e r 2 0 0 9     164    154    334    108    22    182    964  
a t 	 3 0 	s e p t e m b e r	2 0 1 0     171 		 241		 286		 137 		 21 		 156		 1012   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  103
impairment charges
t h e   im p a ir m e n t   c h ar g e   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   f o r   £ 1 5 m   r e l a t e s   t o   o n e   o w n e d   s hip   w i t hin   t h e   u k   o p e r at in g   s e g m e n t    t h e   
‘ i s l an d   e s c ap e ’     
a n   e x p an d e d   c l a s s   s ur v e y   o n   t h e   c o n d i t i o n   o f   t h e   s hip   c o n d u c t e d   in   2 0 1 0   r e v ea l e d   t h at   t h e   s hip   w ill   r e q uir e   a   m o r e   e x t e n s i v e   dr y   d o c k   t h a n 
o r i g in all y   e x p e c t e d   a s   s t e e l w o r k   c o r r o s i o n   a n d   o t h e r   c o n d i t i o n s   o f   c l a s s   w ill   n e e d   t o   b e   r e c t i fi e d   b e f o r e   c e r t i fi c at i o n   i s   r e n e w e d      a s   a   r e s ul t   o f 
in c r ea s e d   r e c t i fi c at i o n   c o s t s    t h e   d ir e c t o r s   h a v e   r e c o n s i d er e d   t h e   s t r at e g y   f o r   t hi s   s hip   a n d   n o w   c o n s i d e r   t h at   t h e   r e c o v e r a b l e   a m oun t   w ill   b e 
b a s e d   up o n   n e t   d i s p o s a l   p r o c e e d s      t h e   r e c o v e r a b l e   a m oun t   o f   t h e   a s s e t    u s in g   f a ir   v a lu e   l e s s   c o s t s   t o   s e ll   b a s i s   o f   v a lu at i o n    i s   d e r i v e d   f r o m 
o bt a inin g   a n   in d e p e n d e n t   m a r k e t   v a lu at i o n   f r o m   an   e x t e r n a l   in t e r n at i o n al   s hip pin g   c o n s ul t a n c y    u s in g   o p e n   m a r k e t   v a lu e      t h e   c ar r y in g   v a lu e    
h a s   b e e n   im p a ir e d   t o   t h e   e x t e n t   t h at   i t   i s   b e l o w   r e c o v e r a b l e   v a lu e   
t h e   2 0 0 9   c h ar g e   w a s   f o r   a irc r a f t    £ 1 2 4 m    w i t hin   t h e   f r e n c h   a ir lin e   o p e r at in g   s e g m e n t    a n d   l a n d   a n d   b uil d in g s    £ 1 m     a c t i v i t y   s e c t o r   o p e r at in g  
s e g m e n t       t h e   im p a ir m e n t   c h ar g e s   ar e   d i s c l o s e d   w i t hin   c o s t   o f   s a l e s   a n d   a s   a   s e p ar at e l y   d i s c l o s e d   i t e m    n o t e   3     
advance payments for future delivery of aircraft
in t e r e s t   o f   £ 5 m    2 0 0 9    £ 2 m    h a s   b e e n   c api t a li s e d   d ur in g   t h e   y ea r   in   r e l a t i o n   t o   t h e   ad v a n c e   p a y m e n t s   f o r   f u t ur e   d e li v e r y   o f   a irc r af t   at   a   r at e   o f  
5  4     2 0 0 9    6  0        a d v an c e   p a y m e n t s   f o r   f u t ur e   d e li v e r y   o f   a irc r af t   w e r e   d i s c l o s e d   a s   p r e p a y m e n t s   in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 8   b u t 
w e r e   t r a n s f e r r e d   t o   p r o p e r t y    p l a n t   a n d   e q uip m e n t   in   t h e   p r i o r   y ea r      t h e r e   w e r e   £ 8 0 m   o f   ad v a n c e   p a y m e n t s   f o r   f u t ur e   d e li v e r y   o f   a irc r af t   a t   
3 0   s e pt e m b e r   2 0 0 8    £ 73 m   w i t hin   n o n  c ur r e n t   p r e p a y m e n t s   an d   £ 7 m   w i t hin   c ur r e n t   p r e p a y m e n t s      t h e   c h an g e s   w e r e   un d e r t a k e n   t o   a li g n   t h e 
g r o up ’ s   p r e s e n t at i o n   w i t h   i t s   p ar e n t   c o m p an y   
other equipment – advance payments for maintenance of owned aircraft
a d v an c e   p a y m e n t s   f o r   m a in t e n an c e   o f   o w n e d   a irc r af t   w e r e   d i s c l o s e d   a s   p r e p a y m e n t s   at   3 0   s e pt e m b e r   2 0 0 8   b u t   w e r e   t r a n s f e r r e d   t o   p r o p e r t y  
p l a n t   a n d   e q uip m e n t   un d e r   c o n s t r u c t i o n   w i t hin   o t h e r   e q uip m e n t   in   t h e   p r i o r   y ea r      t h e r e   w e r e   £ 2 2 m   o f   ad v a n c e   p a y m e n t s   f o r   a irc r af t  
m a in t e n an c e   at   3 0   s e pt e m b e r   2 0 0 8    a ll   w i t hin   n o n  c ur r e n t   p r e p a y m e n t s   
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o t h e r   p r o p e r t y    p l a n t   a n d   e q uip m e n t   w i t h   a   c o m bin e d   n e t   b o o k   v a lu e   a s   at   3 0   s e pt e m b e r   2 0 1 0   o f   £ 1 5 6 m    2 0 0 9    £ 1 8 2 m    in c lu d e s   £ 1 0 3 m    
 2 0 0 9    £ 1 0 3 m    o f   fi x t ur e s   a n d   fi t t in g s    £ 2 4 m    2 0 0 9    £ 4 7 m    o f   p r o p e r t y    p l a n t    a n d   e q uip m e n t   un d e r   c o n s t r u c t i o n   a n d   £ 2 8 m    2 0 0 9    £ 3 0 m     
o f   m o t o r   v e hi c l e s 
l a n d   a n d   b uil d in g s   c o m p r i s e   f r e e h o l d   a n d   l o n g   l ea s e h o l d   p r o p e r t i e s   w i t h   n e t   b o o k   v a lu e s   o f   £ 1 1 8 m    2 0 0 9    £ 1 0 8 m    a n d   s h o r t   l ea s e h o l d 
p r o p e r t i e s   w i t h   a   n e t   b o o k   v a lu e   o f   £ 5 3 m    2 0 0 9    £ 5 6 m    r e s p e c t i v e l y 
t h e   n e t   b o o k   v a lu e   o f   a s s e t s   h e l d   un d e r   fi n a n c e   l ea s e s   a n d   hir e   p urc h a s e   c o n t r ac t s   at   3 0   s e pt e m b e r   2 0 1 0   w a s   £ 2 0 1 m    2 0 0 9    £ 1 5 2 m       
t hi s   in c lu d e s   £ 1 0 9 m    2 0 0 9    £ 3 m    o f   s hip s    y ac h t s   a n d   m o t o r b o a t s    £ 7 9 m    2 0 0 9    £ 1 4 4 m    o f   a irc r af t    £ 7 m    2 0 0 9    £ nil    o f   l an d   a n d   b uil d in g s   
a n d   £ 6 m    2 0 0 9    £ 5 m    o f   o t h e r   a s s e t s    m a inl y   v e hi c l e s 
t h e   n e t   b o o k   v a lu e   o f   p r o p e r t y    p l a n t   a n d   e q uip m e n t   w i t h   r e s t r i c t i o n s   o n   t i t l e    b e in g   p l e d g e d   a s   s e c ur i t y   f o r   b ank   l o an s    a m oun t e d   t o   
£ 2 7 m    2 0 0 9    £ 2 9 m   financial statements
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12 investment in joint ventures associates and other investments
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s h a r e  o f i n t e r e s t  a n d t a x c h a r g e         5  1  6
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a c q u i s i t i o n s         1    58    59  
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a t	3 0	s e p t e m b e r	2 0 1 0       	 57 		 65		 122	
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a t	3 0	s e p t e m b e r	2 0 1 0       	 29 		 60		 89	
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a t	3 0	s e p t e m b e r	2 0 1 0       	 86		 125		 211  
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group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  105
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p r o fi t   l o s s  	b e f o r e 	t a x a t i o n       	 9		 6	 3 
t a x a t i o n         5   3   8
p r o fi t   l o s s  	a f t e r	 t a x a t i o n	f o r 	t h e	y e a r       	 4		 9	 5
n o n  c u r r e n t  a s s e t s         169   159    328 
c u r r e n t  a s s e t s         158    184    342  
t o t a l  a s s e t s         327    343    670  
n o n  c u r r e n t l i a b i l i t i e s        59   60  119
c u r r e n t  l i a b i l i t i e s         154   145   299
t o t a l l i a b i l i t i e s         213   205   418
n e t	a s s e t s       	 114 		 138		 252 	
sunwing strategic venture
t h e   c an ad i a n   m a in s t r eam   b u s in e s s   w a s   c l a s s i fi e d   a s   a   d i s p o s a l   g r o up   a s   at   3 0   s e pt e m b e r   2 0 0 9   a n d   d i s c l o s e d   a s   h e l d   f o r   s a l e   o n   t h e   b a s i s   o f   t h e 
a nn oun c e d   s t r at e g i c   v e n t ur e   t r a n s ac t i o n   w i t h   s un w in g   t r a v e l   g r o up   in c     s un w in g       t h e   r e s p e c t i v e   p ar t i e s   r e c e i v e d   a ll   t h e   n e c e s s a r y   r e g ul a t o r y 
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a s s o c i at e   in   ac c o r d a n c e   w i t h   i a s   2 7    r e v i s e d  
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in v e s t m e n t   h o l d in g   c o m p an y    t o   b e   o w n e d   5 1    b y   s g c m   an d   4 9    b y   t h e   g r o up      t h e   j oin t   v e n t ur e   a g r e e d   t o   ac q uir e   m a j o r i t y   s t a k e s   in   t h e 
b u s in e s s e s   o f   t w o   t o ur   o p e r at o r s   a n d   t r a v e l   a g e n c y   g r o up s   in   r u s s i a   a n d   uk r a in e    v k o   g r o up   a n d   v o y a g e   k i e v    a n d   s i g n e d   a   l e t t e r   o f   in t e n t   t o 
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c o m p e t i t i o n   a u t h o r i t y   a p p r o v a l s   w e r e   g r a n t e d   d ur in g   t h e   c ur r e n t   y ea r   a n d   t h e   j oin t   v e n t ur e   w a s   o f fi c i all y   l a un c h e d   o n   2   m a rc h   2 0 1 0    in c lu d in g  
t h e   c o m p l e t i o n   o f   t h e   ac q ui s i t i o n   o f   a   7 5    c o n t r o llin g   s t a k e   in   m o s t r a v e l ’ s   b u s in e s s 
a ll   m a j o r   d e c i s i o n s   h a v e   t o   b e   a g r e e d   b y   b o t h   s h a r e h o l d e r s   a n d   un d e r   i a s   3 1    in t e r e s t s   in   join t   v e n t ur e s   t h e   e n t i t y   i s   t h e r e f o r e   ac c oun t e d   f o r   
a s   a   j oin t   v e n t ur e 
s g c m   i s   o w n e d   b y   a   s i g ni fi c a n t   s h a r e h o l d e r   o f   t u i   a g   a n d   i s   t h e r e f o r e   c o n s i d e r e d   t o   b e   a   r e l a t e d   p ar t y      t og e bi   h o l d in g s   a n d   i t s   s ub s i d i a r y  
un d e r t a k in g s   ar e   t h e r e f o r e   c o n s i d e r e d   t o   b e   r e l a t e d   p ar t i e s   b y   v ir t u e   o f   s g c m   b e in g   t h e   j oin t   v e n t ur e r   t o   t hi s   in v e s t m e n t 
other investments
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i n v e s t m e n t s  c o n s o l i d a t e d  f o r t h e  fi r s t  t i m e        –    4   4
c h a n g e  i n t h e f a i r v a l u e  o f a v a i l a b l e  f o r s a l e fi n a n c i a l  a s s e t          4   –   4
c h a n g e  i n t h e f a i r v a l u e  o f a s s e t s  h e l d  a t  f a i r  v a l u e  t h r o u g h  p r o fi t  a n d l o s s        30    –   30 
f o r e i g n e x c h a n g e          1   3  4
a t	3 0	s e p t e m b e r 	2 0 1 0       	 56 		 23		 79 	
o t h e r   in v e s t m e n t s   o f   £ 7 9 m    2 0 0 9    £ 7 7 m    c o m p r i s e   t r ad e   a n d   li s t e d   in v e s t m e n t s   a n d   n o n  c o n s o li d a t e d   e n t i t i e s  financial statements
notes to the consolidated financial statements c o n t i n u e d
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a   4 2    s h a r e h o l d in g   in   n a t i o n al   a ir   t r af fi c   s e r v i c e s   l imi t e d     a   7  2    s h a r e h o l d in g   in   a ir   b e r lin   p l c   an d   a   1 0    h o l d in g   in   t h e   a t l a n t i c a   l e i s ur e 
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g r o w t h   s t r a t e g y      i n   a cc o r d a n c e   w i t h   t h e   p r o v i s i o n s   of   i f r s   3    r e v i s e d     i n c i d e n t a l   a cq u i s i t i o n   c o s t s   of   £ 7 m   a n d   £ 2 m   of   r e m u n e r a t i o n   
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t h e s e   ac q ui s i t i o n s   g a v e   r i s e   t o   p r o v i s i o n al   g o o d w ill   o f   £ 3 1 m      t h e   p r in c ip al   ac q uir e d   b u s in e s s e s   a n d   t h e ir   ac q ui s i t i o n   d a t e s   w e r e 
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t h e   g r o up   ac q uir e d   1 0 0    o f   t h e   v o t in g   e q ui t y   in s t r um e n t s   in   r e s p e c t   o f   eac h   ac q ui s i t i o n   c o m p l e t e d   d ur in g   t h e   y ea r   w i t h   t h e   e x c e pt i o n   o f  
w o n d e r h o l d in g   a b    o f   w hi c h   5 1    o f   t h e   v o t in g   e q ui t y   in s t r um e n t s   w e r e   ac q uir e d   a n d   t t o hl   o t e l   h i z m e t l e r i   t ur i z m   v e   t i c ar e t   a n o nim   s ir k e t i  
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t o t a l  c o n s i d e r a t i o n             43  
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t o t a l 	g o o d w i l l 	i n 	r e s p e c t 	o f 	a c q u i s i t i o n s           	 31	
o f   t h e   t r ad e   r e c e i v ab l e s   a b o v e    £ 4 m   r e p r e s e n t s   t h e   g r o s s   a n d   f a ir   v a lu e   o f   t h e   a m oun t   o f   t h e   r e c e i v ab l e s   
a ll   ac q ui s i t i o n s   h a v e   b e e n   ac c o un t e d   f o r   u s in g   t h e   p urc h a s e   m e t h o d    a s   r e q uir e d   b y   if r s   3    r e v i s e d       i t   s h o ul d   b e   n o t e d   t h at   c e r t a in   f a ir   v a lu e  
ad j u s t m e n t s   a n d   t h e   v a lu e   o f   c o n t in g e n t   c o n s i d er at i o n   h a v e   n e c e s s ar il y   b e e n   p r e p a r e d   o n   a   p r o v i s i o n al   b a s i s   d u e   t o   t h e   r e c e n t   t imin g   o f   c e r t a in 
ac q ui s i t i o n s    t h e   p e r i o d s   o v e r   w hi c h   c o n t in g e n t   c o n s i d er at i o n   m a y   b e c o m e   p a y ab l e   a n d   t h e   s ea s o n ali t y   o f   b u s in e s s e s    s u c h   t h at   f a ir   v a lu e s   c an 
o nl y   b e   d e t e r min e d   ac c ur at e l y   o n c e   a   s ea s o n   h a s   p a s s e d      e x p er i e n c e   m a y   r e s ul t   in   r e v i s i o n s   t o   f a ir   v a lu e s   in   t h e   s ub s e q u e n t   ac c o un t in g   p e r i o d  
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fa ir   v a lu e   ad j u s t m e n t s   p r in c ip all y   a r i s e   f r o m 
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a s s e t s   c o m p r i s in g   p r in c ip all y   b r an d s    c u s t o m e r   r e l a t i o n s hip s   a n d   c o n t r ac t s    n o t e   1 0  
a 2   r e c og ni t i o n   o f   d e f e r r e d   t a x at i o n   li a bili t i e s   r e l a t in g   t o   o t h e r   ad j u s t m e n t s    in c lu d in g   in t a n g ib l e   a s s e t s   r e c og ni s e d 
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t h e   g o o d w ill   a r i s in g   in   t h e   y ea r   o f   £ 3 1 m    2 0 0 9    £ 6 2 m    a r i s e s   f r o m   3 1    2 0 0 9    2 7    s e p ar at e   ac q ui s i t i o n s      a s   n o   o n e   s in g l e   ac q ui s i t i o n   in   t h e   c ur r e n t 
o r   p r i o r   y ea r   i s   c o n s i d e r e d   m a t e r i al   t o   g o o d w ill    t h e   r e c o n c ili at i o n   s um m a r y   a s   s h o w n   in   n o t e   1 0   o f   t h e   fi n a n c i a l   s t at e m e n t s   h a s   n o t   b e e n  
a n al y s e d   b y   eac h   ac q ui s i t i o n   in   t h e   c ur r e n t   y ea r   o r   p r i o r   y ea r 
i f r s   3    r e v i s e d    h a s   b e e n   a d o p t e d   f o r   t h e   fi r s t   t i m e   i n   t h e   y e a r   a n d   i s   a p p l i c a b l e   p r o s p e c t i v e l y   f o r   a l l   a c q u i s i t i o n s   a f t e r   1   o c t o b e r   2 0 0 9      i f r s   3  
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o f   t h e s e   c h a n g e s    £ 9 m   h a s   b e e n   e x p e n s e d   i n   t h e   y e a r   a n d   i n c l u d e d   i n   t h e   a c q u i s i t i o n   r e l a t e d   e x p e n s e s   i n   t h e   c o n s o l i d a t e d   i n c o m e   s t a t e m e n t   
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a m o r t i s a t i o n o f b u s i n e s s  c o m b i n a t i o n  i n t a n g i b l e s        	 54   56
o t h e r  a c q u i s i t i o n  r e l a t e d e x p e n s e s         	 7  –
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a t 1  o c t o b e r  2 0 0 9      20    51    6   77 
r e c o g n i s e d  i n t h e y e a r r e l a t i n g  t o  c u r r e n t y e a r a c q u i s i t i o n s        2    2    1    5  
a d j u s t m e n t s  t o a m o u n t s r e c o g n i s e d i n  r e s p e c t o f  p r i o r p e r i o d  a c q u i s i t i o n s      1    11  1  11
c a s h   p a i d      2   9   4   15
f o r e i g n  e x c h a n g e        –    1    –    1  
a t 	 3 0	s e p t e m b e r	2 0 1 0     	 21		 34 		 2 		 57 
     i n c l u d e s   c a p i t a l i s e d   a n d   e x p e n s e d   a m o u n t s      c o n t i n g e n t   c o n s i d e r a t i o n   i s   d e fi n e d   w i t h i n   n o t e   1  c   v  
f ur t h e r   d e t a il s   o f   d e f e r r e d   a n d   c o n t in g e n t   c o n s i d e r at i o n   p a y ab l e   in   l e s s   t h a n   o n e   y ea r   an d   a f t e r   m o r e   t h a n   o n e   y ea r   i s   g i v e n   in   n o t e s   2 0   an d   
2 2   r e s p e c t i v e l y 
t h e   c o n t in g e n t   a n d   d e f e r r e d   c o n s i d er at i o n   p a y ab l e   a r i s in g   in   t h e   y ea r   i s   in   r e s p e c t   o f   t h e   ac q ui s i t i o n s   li s t e d   b e l o w      i t   i s   d e p e n d e n t   o n   t h e   r e s ul t s  
o f   t h e   b u s in e s s e s   o v e r   t h e   f o ll o w in g   p e r i o d s   o r   t h e   b al a n c e   o f   w o r k in g   c api t a l   a t   t h e   ac q ui s i t i o n   d a t e    a n d   t h e   d ir e c t o r s   b e li e v e   t h e   a m o un t s 
r e fl e c t   t h e   m o s t   lik e l y   o u t c o m e   in   eac h   c a s e 
    b a s i s  o f  p e r i o d f o r   e x p e c t e d
    c a l c u l a t i o n   c a l c u l a t i o n   r a n g e o f
a c q u i s i t i o n     o f  c o n s i d e r a t i o n   o f  c o n s i d e r a t i o n   c o n s i d e r a t i o n  
s e l e c t  w o r l d  p t y  l i m i t e d   t r a d i n g a s  s e l e c t   
t o u r s  a u s t r a l i a       earnings   emplo yment  up t o 31 dec 2011   a ud 34m
s p o r t s  e x e c u t i v e t r a v e l  l i m i t e d     earnings   emplo yment   up t o 31 dec 2012  gbp  1m
h a m p s t e a d  s c h o o l  o f  e n g l i s h    earnings   emplo yment   up t o  13 aug 2011   gbp  1m
w o n d e r h o l d i n g  a b    earnings   emplo yment   up t o  30  sep  2015    sek  717m
t o t a l 	c o n t i n g e n t 	c o n s i d e r a t i o n 	r e c o g n i s e d 	i n	r e s p e c t 	o f	c u r r e n t 	y e a r	a c q u i s i t i o n s       gbp 	45m
   o n   7   s e p t e m b e r   2 0 1 0   s e l e c t   w o r l d   p t y   l i m i t e d   c h a n g e d   i t s   n a m e   t o   i n t e r c r u i s e s   s h o r e s i d e      p o r t   s e r v i c e s   p t y   l i m i t e d 
e x p e c t e d   c o n s i d er at i o n   p a y ab l e   r e p r e s e n t s   t h e   e x p e c t e d   c o n s i d e r at i o n   t h at   t h e   g r o up   w ill   b e   o b li g e d   t o   p a y   f o ll o w in g   a n   a s s e s s m e n t   o f   t h e 
r a n g e   o f   p o s s ib l e   c o n t in g e n t   a m oun t s   o f   c o n s i d er at i o n 
t h e   e x p e c t e d   c o n t in g e n t   c o n s i d e r at i o n   f o r   a ll   f o ur   ac q ui s i t i o n s   a b o v e   i s   c al c ul a t e d   u s in g   mul t ip l e s   o f   un d e r l y in g   ea r nin g s      a s   a ll   o f   t h e   a b o v e 
ac q ui s i t i o n s   a r e   w i t hin   t h e   f a ir   v a luin g   p e r i o d   s in c e   t h e ir   d a t e   o f   ac q ui s i t i o n    t h e r e   h a v e   b e e n   n o   m a t e r i al   c h an g e s   t o   t h e   a m o un t s   r e c og ni s e d    
in   t h e   y ea r 
b cash flows arising in respect of acquisitions
t o t al   c a s h   fl o w s   r e l a t in g   t o   ac q ui s i t i o n s   in   t h e   y ea r    in c lu d in g   a m oun t s   p a i d   in   r e s p e c t   o f   d e f e r r e d   a n d   c o n t in g e n t   c o n s i d e r at i o n   ar i s in g   o n   p r i o r  
p e r i o d   ac q ui s i t i o n s    ar e   a s   f o ll o w s 
        	 e x p e c t e d 	 	 2 0 1 0	
        	 t o t a l 	 	 p a i d 	
        	 £ m 	 	 £ m  
a c q u i s i t i o n s 	i n 	t h e	c u r r e n t 	y e a r        	 40	 40 
d e f e r r e d  c o n t i n g e n t  c o n s i d e r a t i o n a r i s i n g a n d  p a i d         	 3	 1	
c a s h 	o u t fl o w 	r e l a t i n g	t o	c u r r e n t 	y e a r 	a c q u i s i t i o n s 	 e x c l u d i n g 	a c q u i s i t i o n 	r e l a t e d 	e x p e n s e s      	 43	 41	
c a s h a c q u i r e d w i t h  a c q u i s i t i o n s          	 5
n e t 	c a s h 	o u t fl o w 	i n 	t h e	y e a r	r e l a t i n g 	t o 	c u r r e n t 	y e a r	a c q u i s i t i o n s          	 36 
c a s h p a i d r e l a t i n g t o p r i o r p e r i o d  a c q u i s i t i o n s  i n c l u d i n g  s e t t l e m e n t  o f  a c q u i s i t i o n  r e l a t e d l o a n  n o t e s        	 15	
n e t	c a s h 	o u t fl o w 	i n 	t h e	y e a r	r e l a t i n g 	t o	a c q u i s i t i o n s           	 51	
a c q u i s i t i o n 	r e l a t e d 	e x p e n s e s            	 7 	
t o t a l	c a s h	o u t fl o w s 	i n 	t h e 	y e a r	r e l a t i n g 	t o	a c q u i s i t i o n s           	 58	
c residual goodwill
a   c o n s i s t e n t   p r o c e s s   i s   un d e r t a k e n   at   eac h   ac q ui s i t i o n   t o   i d e n t i f y   t h e   f a ir   v a lu e   o f   s e p ar a b l e   a s s e t s   a n d   li a bili t i e s   ac q uir e d    in c lu d in g   t h e   f a ir   v a lu e  
o f   in t a n g ib l e   a s s e t s    b e in g   b r an d s    o r d e r   b o o k s    li c e n c e s    c u s t o m e r   r e l a t i o n s hip s   an d   o t h e r   in t a n g ib l e   a s s e t s      t h e   r e s i d u a l   g o o d w ill   o n   ac q ui s i t i o n  
r e p r e s e n t s   t h e   v a lu e   o f   a s s e t s   a n d   ea r nin g s   t h at   d o   n o t   f o r m   s e p ar a b l e   a s s e t s   un d e r   if r s   3    r e v i s e d    b u t   n e v e r t h e l e s s   a r e   e x p e c t e d   t o 
c o n t r ib u t e   t o   t h e   f u t ur e   r e s ul t s   o f   t h e   g r o up  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  109
r e s i d u a l   g o o d w ill   in   r e s p e c t   o f   c ur r e n t   y ea r   ac q ui s i t i o n s   r e p r e s e n t s   p r in c ip all y 
•   m a r k e t   k n o w l e d g e   o f   p ar t i c ul a r   g e og r a p hi c   ar ea s 
•   k n o w l e d g e   o f   p ar t i c ul a r   m a r k e t   s e g m e n t s    f o r   e x a m p l e   s p o r t s   t r a v e l   a n d   l an g u a g e   t r a inin g 
•   in v o l v e m e n t   o f   e x i s t in g   m a n a g e m e n t   a n d   e m p l o y e e s   a n d   t r a n s f e r   o f   t h e ir   k n o w l e d g e   o f   t h e   o p e r at i o n   o f   t h e   b u s in e s s   m o d e l 
•   in t e g r at i o n   s y n e r g i e s   p ar t i c ul a r l y   w i t hin   u k   m a in s t r eam   a n d   t h e   a c t i v i t y   s e c t o r    a n d
•   t h e   a bili t y   t o   s e ll   ac q uir e d   p r o d u c t   t hr o u g h   e x i s t in g   c h ann e l s   a n d   e x i s t in g   p r o d u c t   t hr o u g h   ac q uir e d   c h ann e l s    in   a ll   s e c t o r s 
d consolidated income statement
i f   t h e   b u s in e s s e s   t h at   w e r e   ac q uir e d   a t   v a r i ou s   t im e s   d ur in g   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0   h ad   b e e n   p ar t   o f   t h e   g r o up   s in c e   1   o c t o b e r  
2 0 0 9    g r o up   r e v e n u e   w o ul d   h a v e   b e e n   in c r ea s e d   b y   £ 4 2 m   t o   £ 1 3  4 4 2 m      t h e   l o s s   b e f o r e   t a x   f o r   t h e   y ea r   o f   £ 3 6 m   w oul d   h a v e   b e e n   £ 8 m   hi g h e r    
at   £ 4 4 m   o n   t hi s   b a s i s      t hi s   a m oun t   h a s   b e e n   c al c ul a t e d   af t e r   a p p l y in g   t h e   g r o up ’ s   ac c oun t in g   p o li c i e s   a n d   ad j u s t in g   f o r   c h a r g in g   a m o r t i s a t i o n    
o f   b u s in e s s   c o m bin at i o n   in t a n g ib l e s   h ad   t h o s e   in t a n g ib l e   a s s e t s   b e e n   r e c og ni s e d   s in c e   1   o c t o b e r   2 0 0 9 
t h e   ac q uir e d   b u s in e s s e s   c o n t r ib u t e d   r e v e n u e s   o f   £ 6 8 m   a n d   p r o fi t   af t e r   t a x    in c lu d in g   a m o r t i s a t i o n   o f   b u s in e s s   c o m bin at i o n   in t a n g ib l e s    o f   £ 7 m 
e acquisitions post balance sheet date
s ub s e q u e n t   t o   3 0   s e pt e m b e r   2 0 1 0    t h e   g r o up   ac q uir e d   4 9    o f   b o o m e r an g   r e i s e n   g m b h   f o r   c o n s i d e r at i o n   o f   £ 2 m 
t h e   ac c o un t in g   f o r   t hi s   ac q ui s i t i o n   h a s   n o t   y e t   b e e n   fi n a li s e d   
f prior period revisions to fair values
in   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9    t h e   g r o up   ac q uir e d   v a r i o u s   b u s in e s s e s   f o r   a   t o t al   c o n s i d e r at i o n   o f   £ 9 2 m      t h e   fi n a li s at i o n   o f   t h e 
ac q ui s i t i o n   b al a n c e   s h e e t s   f o r   t h e s e   b u s in e s s e s   h a s   n o t   l e d   t o   a   m at e r i al   ad j u s t m e n t   t o   g o o d w ill   p r e s e n t e d   in   t h e   2 0 0 9   ac c o un t s   a n d   t h e r e f o r e  
t h e r e   i s   n o   r e s t at e m e n t   o f   t h e   r e s ul t s   f o r   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 0 9    o r   b al a n c e   s h e e t   a s   at   3 0   s e pt e m b e r   2 0 0 9   in   r e s p e c t   o f    
t h e s e   fi n a li s at i o n s 
g gains and losses in subsequent periods
if r s   3    r e v i s e d    a n d   i t s   p r e d e c e s s o r    if r s   3    2 0 0 4    r e q uir e s   d i s c l o s ur e   in   t h e   c ur r e n t   y ea r   o f   a n y   m at e r i al   g a in   o r   l o s s   in   t h e   c ur r e n t   p e r i o d   in  
r e s p e c t   o f   m a t e r i al   b u s in e s s   c o m bin at i o n s      in   2 0 1 0    t h e   g r o up   h a s   im p a ir e d   t h e   a s s e t   o f   i s l a n d   e s c ap e    b y   £ 1 5 m   f o ll o w in g   t h e   s t e p   ac q ui s i t i o n   o f 
i s l a n d   c r ui s e s   in   2 0 0 9    f ur t h e r   in f o r m a t i o n   i s   in c lu d e d   in   n o t e   1 1      t h e r e   w e r e   n o   m a t e r i al   g a in s   o r   l o s s e s   in   r e s p e c t   o f   m a t e r i al   b u s in e s s 
c o m bin at i o n s   in   t h e   c o m p ar at i v e   y ea r   
d i s p o s a l s
d ur in g   t h e   y ea r   e n d e d   3 0   s e pt e m b e r   2 0 1 0    t h e   g r o up   d i s p o s e d   o f   i t s   1 0 0    s h a r e h o l d in g   in   k a y l e e   e n t e r p r i s e s   in c     a   c o m p an y   in c o r p o r a t e d   in  
t h e   uni t e d   s t a t e s      t o t al   p r o c e e d s   w e r e   £ 2 m   a n d   t h e   p r o fi t   o n   d i s p o s a l   w a s   £ 1 m 
14 deferred tax assets and liabilities
    a s s e t s    l i a b i l i t i e s    n e t  
       
  3 0 	 s e p t e m b e r 	   3 0  s e p t e m b e r 	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r 	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r  
  2 0 1 0 	   2 0 0 9   2 0 1 0 	   2 0 0 9    2 0 1 0 	   2 0 0 9  
  £ m    £m   £ m    £m  	 £ m    £m            
i n t a n g i b l e  a s s e t s  1	  26   150   212  149  186
f i n a n c e l e a s e  t r a n s a c t i o n s   –	  1   32  25   32  24
p r o p e r t y    p l a n t  a n d  e q u i p m e n t  97   81   47  44  50 	  37 
f i n a n c i a l i n s t r u m e n t s  a n d f o r e i g n e x c h a n g e   32	  85   37  80	 5  5 
i n t e r e s t  b e a r i n g l o a n s  a n d  b o r r o w i n g s  254 	   46 	 230   10  24 	  36 
e m p l o y e e  b e n e fi t s   126 	   117    – 	   –  	 126 	  117  
o t h e r  s h o r t  t e r m  t e m p o r a r y d i f f e r e n c e s   302 	   102    317   50   15   52  
t a x  v a l u e  o f l o s s e s  c a r r i e d  f o r w a r d   87 	  77    – 	  –  	 87 	  77  
t o t a l  899 	   535    813   421   86 	  114  
s e t o f f  o f d e f e r r e d  t a x  w i t h i n  t h e  s a m e j u r i s d i c t i o n   785   324   785 	   324    – 	  –  
n e t	t a x	a s s e t s   l i a b i l i t i e s    114 	   211    28   97 	 86 	  114  
t h e   g r o up   h a s   r e c og ni s e d   d e f e r r e d   t a x   a s s e t s   r e l a t in g   t o   t a x   l o s s e s   in   in d i v i d u a l   t a x   j ur i s d i c t i o n s   b a s e d   o n   f o r e c a s t   f u t ur e   t a x a b l e   p r o fi t s  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
110   t u i t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0
unrecognised deferred tax assets
d e f e r r e d   t a x   a s s e t s   h a v e   n o t   b e e n   r e c og ni s e d   in   r e s p e c t   o f   t h e   f o ll o w in g   i t e m s    r e p o r t e d   at   t h e   a p p li c a b l e   t a x   r at e  
            r e s t a t e d  
        	 3 0 	 s e p t e m b e r    3 0  s e p t e m b e r  
        	 2 0 1 0 	   2 0 0 9 
        	 £ m    £m 
c a p i t a l  l o s s e s         	 3	  3  
o t h e r  l o s s e s         	 197 	  147  
o t h e r s h o r t  t e r m  t i m i n g  d i f f e r e n c e s         	 –	  32 
t o t a l	l o s s e s         	 200 	  182  
t h e s e   a s s e t s   h a v e   n o t   b e e n   r e c og ni s e d   p r in c ip all y   b e c a u s e   t h e   d ir e c t o r s   a r e   n o t   c e r t a in   o f   t h e   t imin g   o f   a n y   b e n e fi t s   t h at   mi g h t   a r i s e   in   t h e  
f u t ur e      t h e s e   l o s s e s   a r e   n o t   s ubj e c t   t o   t im e   e x pir y   a n d   ar e   a v a il ab l e   f o r   u t ili s a t i o n   a g a in s t   p r o fi t s   a r i s in g   in   f u t ur e   p e r i o d s   in   t h e   t e r r i t o r i e s   in  
w hi c h   t h e y   h a v e   a r i s e n      t h e   v a lu e   o f   unr e c og ni s e d   c api t a l   l o s s e s   h a s   b e e n   r ea s s e s s e d   d ur in g   t h e   y ea r      t h e   2 0 0 9   c o m p ar at i v e   h a s   b e e n   r e s t at e d  
t o   b e   p r e s e n t e d   o n   a   c o n s i s t e n t   b a s i s      t h e r e   a r e   n o   o t h e r   unp r o v i d e d   d e f e r r e d   t a x   li a bili t i e s   n o r   unr e c og ni s e d   d e f e r r e d   t a x   a s s e t s 
m o v e m e n t s   in   t e m p o r a r y   d i f f e r e n c e s   d ur in g   t h e   c ur r e n t   y ea r 
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    1  o c t o b e r    a r i s i n g  o n   e x t i n g u i s h e d    c h a r g e d   i n     c h a r g e d   i n    f o r e i g n   	 3 0 	 s e p t e m b e r	
    2 0 0 9    a c q u i s i t i o n   o n d i s p o s a l s  i n c o m e   e q u i t y    e x c h a n g e   	 2 0 1 0 	
    £m    £m   £m   £m    £m    £m  	 £ m	
i n t a n g i b l e  a s s e t s     186  4   26   13   1  3  	 149
f i n a n c e  l e a s e  t r a n s a c t i o n s     24  –     8  –   –  	 32
p r o p e r t y   p l a n t  a n d e q u i p m e n t    37    –    1   14    –    –  	 50	
f i n a n c i a l i n s t r u m e n t s a n d f o r e i g n e x c h a n g e     5    –    1    –     9   2 	 5
i n t e r e s t  b e a r i n g  l o a n s  a n d b o r r o w i n g s     36    –    3   27    31   5 	 24	
e m p l o y e e b e n e fi t s     117    –    –    5   13    1  	 126	
o t h e r  s h o r t  t e r m  t e m p o r a r y d i f f e r e n c e s     52    –     8    65   8   2 	 15
t a x  v a l u e o f  l o s s e s  c a r r i e d  f o r w a r d     77   –   11   20    –   1 	 87	
t o t a l    114   4   20   4   36  4 	 86	
m o v e m e n t s   in   t e m p o r a r y   d i f f e r e n c e s   d ur in g   t h e   p r i o r   y ea r   a r e   a n al y s e d   a s   f o ll o w s 
      b a l a n c e  a t      r e c o g n i s e d     r e c o g n i s e d        b a l a n c e  a t  
      1  o c t o b e r    a r i s i n g  o n    c h a r g e d   i n    c h a r g e d   i n   f o r e i g n    3 0  s e p t e m b e r  
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i n t a n g i b l e  a s s e t s       187  1  15   1    14  186
f i n a n c e  l e a s e  t r a n s a c t i o n s       12   –    35  –   1   24
p r o p e r t y  p l a n t  a n d e q u i p m e n t      3  –    41   –   1   37 
f i n a n c i a l  i n s t r u m e n t s a n d f o r e i g n e x c h a n g e       23   –    10   39    1   5 
i n t e r e s t  b e a r i n g  l o a n s  a n d b o r r o w i n g s       1  –   39    –   2  36 
e m p l o y e e b e n e fi t s       58   –    7  65   1    117 
o t h e r  s h o r t  t e r m  t e m p o r a r y d i f f e r e n c e s      50   1  1   –   4   52 
t a x  v a l u e  o f  l o s s e s  c a r r i e d f o r w a r d       64    –    17    –    4   77  
t o t a l      30  2  59    105   18   114 
in t an g ib l e   a s s e t   t e m p o r a r y   d i f f e r e n c e s   a r i s e   in   r e s p e c t   o f   a s s e t s   r e c og ni s e d   o n   ac q ui s i t i o n      p r o p e r t y    p l a n t   a n d   e q uip m e n t   t e m p o r a r y 
d i f f e r e n c e s   p r in c ip all y   r e l a t e   t o   t a x   d e p r e c i at i o n   in   t h e   u k    f r a n c e   a n d   g e r m an y      e m p l o y e e   b e n e fi t s   t e m p o r a r y   d i f f e r e n c e s   a r i s e   in   r e s p e c t   o f 
d e fi n e d   b e n e fi t   p e n s i o n   s c h e m e   li a bili t i e s   a n d   f u t ur e   d e d u c t i o n s   a v a il ab l e   o n   t h e   v e s t in g   o f   e m p l o y e e   a w a r d s      f in an c i al   in s t r um e n t s   a n d   f o r e i g n  
e x c h an g e   t e m p o r a r y   d i f f e r e n c e s   a r i s e   in   r e s p e c t   o f   fi n a n c i a l   in s t r um e n t s   ac c ount e d   f o r   un d e r   i a s   3 9   a n d   p r in c ip all y   r e fl e c t   t h e   f a ir   v a lu e   at    
3 0   s e pt e m b e r   2 0 1 0   o f   c a s h   fl o w   h e d g in g   d e r i v a t i v e s   t h at   w ill   b e   s e t t l e d   a g a in s t   f u t ur e   t r a n s ac t i o n s      o t h e r   s h o r t  t e r m   t e m p o r a r y   d i f f e r e n c e s  
r e l a t e   t o   o p e r at in g   e x p e n s e s   a n d   r e l a t e d   ac c r u a l s   a n d   p r o v i s i o n s   f o r   w hi c h   a   t a x   d e d u c t i o n   h a s   n o t   y e t   b e e n   r e c og ni s e d   
15 inventories
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a i r l i n e  s p a r e s  a n d  o p e r a t i n g e q u i p m e n t        	 24	  21  
o t h e r  o p e r a t i n g  i n v e n t o r i e s         	 10	  13 
t o t a l        	 49	  51 
t h e   r e v e r s a l   o f   a   w r i t e  d o w n   o f   in v e n t o r i e s   t o   n e t   r ea li s a b l e   v a lu e   a m o un t e d   t o   £ 2 m   in   2 0 1 0    2 0 0 9    w r i t e  d o w n   £ 3 m       wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  111
16 trade and other receivables
      r est a t ed  r est a t ed
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  	 c u r r e n t 	 n o n  c u r r e n t 	 t o t a l   c u r r e n t  n o n  c u r r e n t  t o t a l   c u r r e n t   n o n  c u r r e n t  t o t a l
  	 a s s e t s 	 a s s e t s 	 a s s e t s   a s s e t s   a s s e t s   a s s e t s   a s s e t s   a s s e t s   a s s e t s
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t r a d e r e c e i v a b l e s  	 586 		 –		 586 	   604    –   604    576    –   576 
a m o u n t s  o w e d b y  r e l a t e d p a r t i e s  	 		 53	 –		 53	  26    –    26    133    2    135  
i n t e r e s t  b e a r i n g  o t h e r  r e c e i v a b l e s	 	 – 		 7		 7 	  –    –    –    –   –   – 
o t h e r r e c e i v a b l e s  	 204 		 34		 238	  266    43    309    340    98    438  
  	 843 		 41		 884	  896    43    939    1049    100    1149  
p r e p a y m e n t s   	 561 		 115		 676	  586   151   737   550    110   660 
t o t a l  	 1404 		 156		 1560      1482    194    1676    1599    210    1809  
t r ad e   r e c e i v ab l e s   a s   at   3 0   s e pt e m b e r   2 0 0 9   h a v e   b e e n   r e d u c e d   b y   £ 54 m    2 0 0 8    £ 54 m    f o ll o w in g   t h e   r e s t at e m e n t   d i s c l o s e d   in   n o t e   1  b   i i  
t h e   m a x imum   e x p o s ur e   t o   c r e d i t   r i s k   f o r   t o t al   l o an s   a n d   r e c e i v ab l e s   at   t h e   r e p o r t in g   d a t e   b y   g e og r a p hi c   r e g i o n   w a s 
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u n i t e d  k i n g d o m         	 235	  222  
g e r m a n y         	 131    132 
f r a n c e         	 93	  132 
o t h e r e u r o p e a n  c o u n t r i e s         	 358 	  331  
r e s t o f t h e w o r l d         	 67   122 
t o t a l        	 884    939  
t r ad e   a n d   o t h e r   r e c e i v ab l e s   ar e   d i s c l o s e d   n e t   o f   p r o v i s i o n s   f o r   b ad   an d   d o ub t f ul   d e b t s    an   a n al y s i s   o f   w hi c h   i s   s h o w n   b e l o w 
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b a l a n c e a t t h e  b e g i n n i n g  o f t h e  y e a r        	 59 	  36 
f o r e i g n e x c h a n g e         	 2  10 
c h a r g e t o  t h e c o n s o l i d a t e d  i n c o m e  s t a t e m e n t         	 17	  23 
u t i l i s a t i o n  o f p r o v i s i o n         	 19   10
t o t a l        	 55	  59  
t h e   a g e in g   o f   t r ad e   r e c e i v ab l e s   at   t h e   b al a n c e   s h e e t   d a t e   w a s 
        r est a t ed
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        	 g r o s s 	 p r o v i s i o n 	 n e t   g r o s s   p r o v i s i o n  n e t 
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n o t o v e r d u e         	 645		 2	 643 	   696    1  695 
o v e r d u e 1  – 3 0  d a y s         	 139 		 3	 136    125    8   117  
o v e r d u e 3 1  – 9 0  d a y s         	 47 		 1	 46   50    3  47  
o v e r d u e 9 1  – 1 8 0  d a y s         	 18 		 2	 16   20    3  17  
o v e r d u e m o r e t h a n  1 8 0 d a y s         	 90		 47	 43    107    44   63  
t o t a l        	 939		 55	 884    998    59   939  
n o   in d i v i d u a ll y   m a t e r i al   b ad   d e b t   p r o v i s i o n   m o v e m e n t s   o r   c h a n g e s   h a v e   b e e n   r e c o r d e d   in   t h e   y ea r      b a s e d   o n   p a s t   e x p e r i e n c e   a n d   t h e   p o s t  
b al a n c e   s h e e t   p e r i o d   t o   t h e   d a t e   o f   a p p r o v a l   o f   t h e s e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s    t h e   g r o up   c o n s i d er s   t h at   t h e   p r o v i s i o n   a ll o w an c e  
r e c o r d e d   i s   ad e q u a t e      w i t hin   t h e   p r o v i s i o n   t h e r e   a r e   n o   in d i v i d u a ll y   m a t e r i al   am oun t s   h e l d      t r ad e   r e c e i v ab l e s   n o t   o v e r d u e   a n d   n o t   im p a ir e d 
in c lu d e   a m oun t s   d u e   f r o m   t r a v e l   a g e n c i e s    t o ur   o p e r at o r s   a n d   h o t e li e r s   in   r e s p e c t   o f   m a in s t r ea m    s p e c i a li s t      e m e r g in g   m a r k e t s    a c t i v i t y   an d  
a c c o m m o d a t i o n      d e s t in a t i o n s   s e c t o r s      c r e d i t   e x p o s ur e   t o   in d i v i d u a l   p a s s e n g e r s   b o o k in g   h o li d a y s   d ir e c t l y   i s   limi t e d   b y   t h e   g r o up ’ s   p o li c y   t h at 
f ull   p a y m e n t   i s   r e q uir e d   b e f o r e   t h e   i s s u e   o f   t i c k e t s   an d   h o li d a y   d e p a r t ur e 
t h e   p r o v i s i o n   o f   £ 5 5 m    2 0 0 9    £ 5 9 m    r e l a t e s   t o   g r o s s   r e c e i v ab l e s   o f   £ 9 6 m    2 0 0 9    £ 1 0 3 m       t h e r e f o r e   t h e r e   ar e   £ 1 9 8 m   o f   r e c e i v ab l e s   t h at   a r e  
o v e r d u e   a n d   n o t   im p a ir e d   a t   3 0   s e pt e m b e r   2 0 1 0    2 0 0 9    £ 1 9 9 m   financial statements
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112   t u i t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0
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c a s h a t  b a n k        	 234 	  304  
d e p o s i t s        	 1052	   452 
c a s h 	a n d 	 c a s h 	e q u i v a l e n t s         	 1304	   790 
c a s h   a n d   c a s h   e q ui v a l e n t s   in c lu d e s   £ 5 1 m    2 0 0 9    £ 6 0 m    t h at   i s   n o t   a v a il ab l e   f o r   im m e d i at e   u s e   b y   t h e   g r o up      t hi s   i s   m ad e   up   o f   m o ni e s   h e l d   
t o   m e e t   r e g ul a t o r y   r e q uir e m e n t s   p lu s   c a s h   b al a n c e s   o n   s h o r t  t e r m   d e p o s i t s   h e l d   o n   a   r e s t r i c t e d   b a s i s   b y   t h e   g r o up ’ s   c apt i v e   in s ur an c e   f un d s   
a s   p ar t   o f   t h e ir   o n g oin g   o p e r at i o n s 
d e p o s i t s   in c lu d e   a n   a m oun t   o f   £ 3 7 0 m    2 0 0 9    £ nil    w hi c h   i s   d e p o s i t e d   w i t h   t h e   p ar e n t   c o m p an y    t u i   a g   a n d   i s   r e p a y a b l e   o n   d e m an d 
o t h e r   c ur r e n t   in v e s t m e n t s   d i s c l o s e d   in   t h e   c o n s o li d at e d   b al a n c e   s h e e t   o f   £ nil    2 0 0 9    £ 3 6 m    c o m p r i s e   d e p o s i t   b al a n c e s   h e l d   t o   m e e t   r e g ul a t o r y 
r e q uir e m e n t s   w i t h   a   t e r m   e x c e e d in g   t hr e e   m o n t h s 
18 assets classified as held for sale 
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a i r c r a f t         	 15	  16  
d i s p o s a l  g r o u p s  – a s s e t s        	 30	  93  
o t h e r        	 10 	  4  
t o t a l	a s s e t s 	c l a s s i fi e d 	a s	h e l d 	f o r 	s a l e         	 57   126 
d i s p o s a l  g r o u p s  – l i a b i l i t i e s        	 31   59
n e t	a s s e t s 	c l a s s i fi e d 	a s	h e l d 	f o r	s a l e         	 26   67  
t h e   d i s p o s a l   g r o up   a s s e t s   a n d   li a bili t i e s   h e l d   f o r   s a l e   c o m p r i s e   s o c i é t é   d ’ in v e s t i s s e m e n t   a é r i e n   s  a     j e t 4 y o u    at   3 0   s e pt e m b e r   2 0 1 0   a n d   
3 0   s e pt e m b e r   2 0 0 9   an d   t h e   c an ad i a n   m a in s t r ea m   b u s in e s s   a t   3 0   s e pt e m b e r   2 0 0 9      j e t 4 y o u   i s   in c lu d e d   w i t hin   t h e   r e s t   o f   w e s t e r n   e ur o p e 
s e g m e n t   a n d   t h e   c an ad i a n   m a in s t r ea m   b u s in e s s   w a s   in c lu d e d   in   t h e   r e s t   o f   n o r t h e r n   r e g i o n      j e t 4 y o u   i s   p r e s e n t e d   a s   h e l d   f o r   s a l e   a t   t h e 
c ur r e n t   a n d   p r i o r   y ea r   e n d    b a s e d   o n   t h e   ac t i v e   a n d   o n g oin g   d i s p o s a l   p r o c e s s   f o r   t h e   b u s in e s s   w hi c h   i s   p r og r e s s in g   a n d   w hi c h   t h e   d ir e c t o r s   
e x p e c t   t o   c o m p l e t e   w i t hin   1 2   m o n t h s 
a s s e t s   h e l d   f o r   s a l e   a r e   e x p e c t e d   t o   b e   s o l d   w i t hin   1 2   m o n t h s    
t h e   c an ad i a n   m a in s t r eam   b u s in e s s   w a s   c l a s s i fi e d   a s   a   d i s p o s a l   g r o up   a s   at   3 0   s e pt e m b e r   2 0 0 9   a n d   d i s c l o s e d   a s   h e l d   f o r   s a l e   p r e v i o u s l y   o n   t h e 
b a s i s   o f   t h e   a nn oun c e d   s t r at e g i c   v e n t ur e   t r a n s ac t i o n   w i t h   s un w in g   t r a v e l   g r o up   in c     a   l ead in g   t o ur   o p e r at o r   in   c an ad a      t h e   r e s p e c t i v e   p ar t i e s  
r e c e i v e d   a ll   t h e   n e c e s s a r y   r e g ul a t o r y   a p p r o v a l s   o n   1 4   jan u a r y   2 0 1 0   a n d   s ub s e q u en t l y   fi n a li s e d   t h e   t r a n s ac t i o n 
un d e r   t h e   t e r m s   o f   t h e   d eal    t u i   t r a v e l   p l c   c o n t r ib u t e d   i t s   c an ad i a n   m a in s t r ea m   o p e r at i o n s   p lu s   c  1 0 2 m   a n d   s un w in g   c o n t r ib u t e d   i t s 
o p e r at i o n s   t o   t h e   s t r at e g i c   v e n t ur e    t u i   t r a v e l   r e c e i v e d   a   4 9    e c o n o mi c   in t e r e s t   in   t h e   s t r at e g i c   v e n t ur e    w i t h   s un w in g ’ s   o w n e r s   r e c e i v in g   
5 1    o f   t h e   e c o n o mi c   in t e r e s t      t h e   t o t a l   g a in   r e c og ni s e d   o n   t h e   d i s p o s a l   o f   t h e   m a in s t r eam   b u s in e s s   in   ac c o r d a n c e   w i t h   i a s   2 7    r e v i s e d    w a s  
£ 1 3 m   a n d   h a s   b e e n   in c lu d e d   w i t hin   s e p ar at e l y   d i s c l o s e d   i t e m s   in   n o t e   3 
g o o d w ill   a r i s in g   o n   t h e   t r a n s ac t i o n   w a s   £ 4 7 m   an d   f o r m s   p ar t   o f   t h e   g r o up ’ s   e q ui t y   in v e s t m e n t   in   a s s o c i at e d   un d e r t a k in g s 
        	 y e a r 	 e n d e d    y e a r e n d e d 
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        	 2 0 1 0    2 0 0 9
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r e s u l t 	o f 	t h e	d i s p o s e d	g r o u p	c o m p a n y 	c l a s s i fi e d 	a s	h e l d 	f o r 	s a l e 	a s	a t	3 0	s e p t e m b e r 	2 0 0 9 	–		
c a n a d i a n	m a i n s t r e a m	b u s i n e s s 	–	1 0 0 	
r e v e n u e        	 52 	  167 
e x p e n s e s         	 57  192
l o s s b e f o r e  t a x o f d i s p o s e d  o p e r a t i o n         	 5  25
t a x        	 –	  – 
l o s s 	f o r 	t h e	y e a r	f r o m 	d i s p o s e d 	o p e r a t i o n         	 5   25
a s s o c i a t e d  g r o u p  s h a r e o f r e s u l t s  o f t h e s u n w i n g  s t r a t e g i c  v e n t u r e – 4 9 
s h a r e  o f u n d e r l y i n g  p r o fi t s  b e f o r e t a x  f o r t h e y e a r        	 1	  –  
s h a r e  o f t a x  c h a r g e         	 –	  –  
s h a r e 	o f 	n e t	p r o fi t s         	 1	  –  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  113
19 interestbearing loans and borrowings
          3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r  
        	 2 0 1 0 	   2 0 0 9 
        	 £ m    £m   
c u r r e n t	l i a b i l i t i e s
a m o u n t s  o w e d t o r e l a t e d p a r t i e s        	 575	  229  
b a n k l o a n s  a n d o v e r d r a f t s         	 1	  31 
l o a n n o t e s         	 1	  3  
f i n a n c e  l e a s e s   a n d  h i r e p u r c h a s e  c o n t r a c t s          	 142 	  25  
o t h e r  fi n a n c i a l  l i a b i l i t i e s        	 38	  39  
t o t a l        	 757 	  327  
o t h e r   fi n a n c i a l   li a bili t i e s   c o m p r i s e   t h e   ‘ f a ir   v a lu e ’   o f   t w o   p u t   o pt i o n s   w r i t t e n   b y   t h e   g r o up   t o   t h e   s o l e   r e m a inin g   n o n  c o n t r o llin g   in t e r e s t 
s h a r e h o l d e r   in   l ’ t u r   t h at   m a y   r e q uir e   t h e   g r o up   t o   p urc h a s e   t h e   n o n  c o n t r o llin g   in t e r e s t   s h a r e h o l d in g      d ur in g   t h e   p r i o r   y ea r    t h e   g r o up  
in c r ea s e d   i t s   s h a r e h o l d in g   f r o m   5 1    t o   7 0    o n   t h e   e x e rc i s e   o f   p ar t   o f   o n e   o f   t h e   o pt i o n s      t h e   r e m a in d e r   o f   t hi s   p u t   o pt i o n   o v e r   2 0    o f   t h e 
s h a r e s   m a y   b e   e x e rc i s e d   a t   a n y   t im e   un t il   2 0 1 5      a   f ur t h e r   p u t   o pt i o n   at   a   fi x e d   p r i c e   w i t h   n o   t im e   limi t   h a s   b e e n   w r i t t e n   b y   t h e   g r o up   d ur in g   
t h e   y ea r   t o   t h e   s a m e   n o n  c o n t r o llin g   in t e r e s t   s h a r e h o l d e r   f o r   t h e   r e m a inin g   1 0    s h a r e h o l d in g 
fa ir   v a lu e   c h an g e s   in   t h e   p u t   o pt i o n   li a bili t y   a r e   in c lu d e d   w i t hin   fi n a n c i a l   e x p e n s e s   o r   fi n a n c i a l   in c o m e 
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r  
        	 2 0 1 0 	   2 0 0 9 
        	 £ m 	   £m  
n o n  c u r r e n t	l i a b i l i t i e s
a m o u n t s  o w e d t o r e l a t e d p a r t i e s        	 –	  611  
b a n k l o a n s         	 35   20  
l o a n n o t e s         	 1	  3  
f i n a n c e  l e a s e s   a n d  h i r e p u r c h a s e  c o n t r a c t s          	 127 	  167  
c o n v e r t i b l e b o n d s        	 633 	  –  
t o t a l        	 796	  801 
t h e   b ank   l o an s   a n d   l o an   n o t e s   a r e   r e p a y a b l e 
        	 3 0 	 s e p t e m b e r 	   3 0 s e p t e m b e r  
        	 2 0 1 0 	    2 0 0 9 
        	 £ m 	    £m  
w i t h i n o n e  y e a r        	 2	  34 
b e t w e e n o n e a n d fi v e  y e a r s        	 36	  23 
t o t a l        	 38	  57  
c e r t a in   l o an s   a r e   s e c ur e d   o n   t h e   un d e r l y in g   a s s e t s   o f   t h e   c o m p an y   in   w h o s e   n a m e   t h e   b o r r o w in g s   a r e   m ad e    a t   3 0   s e pt e m b e r   2 0 1 0   a n d   
3 0   s e pt e m b e r   2 0 0 9   t h e   r e l a t e d   p ar t y   l o an s   w e r e   all   r e p a y a b l e   w i t hin   fi v e   y ea r s      f in an c e   l ea s e   li a bili t i e s   r e l a t e   p r im a r il y   t o   t h e   l ea s in g   o f   a irc r af t  
b o at s   a n d   c r ui s e   s hip s      g r o up   o b li g at i o n s   un d e r   fi n a n c e   l ea s e s   a n d   hir e   p urc h a s e   c o n t r ac t s   a r e   p a y ab l e   a s   f o ll o w s 
  	 	 m i n i m u m       m i n i m u m
  	 	 l e a s e       l e a s e
  	 	 p a y m e n t s       p a y m e n t s  
  	 	 3 0 	 s e p t e m b e r       3 0 s e p t e m b e r
  p r i n c i p a l 	 	 i n t e r e s t 	 	 2 0 1 0 	   p r i n c i p a l   i n t e r e s t    2 0 0 9  
  £ m 	 	 £ m 	 	 £ m 	   £m    £m   £m 
i n r e s p e c t  o f a i r c r a f t   y a c h t s  a n d e q u i p m e n t p a y a b l e w i t h i n 
o n e  y e a r  142	 12	 154  25   8   33 
o n e  t o fi v e  y e a r s  78	 14	 92   164   6    170 
a f t e r fi v e  y e a r s  49	 16	 65   3   –    3 
t o t a l   269	 42	 311  192   14   206  financial statements
notes to the consolidated financial statements c o n t i n u e d
wwwtuitravelplccom
114   t u i t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0
c o n v e r t i b l e 	 b o n d s
        	 3 0 	 s e p t e m b e r    3 0 s e p t e m b e r  
        	 2 0 1 0 	   2 0 0 9  
        	 £ m 	   £m  
£ 3 5 0 m c o n v e r t i b l e  b o n d 6  0   o c t o b e r  2 0 1 4         	 304	  –
£ 4 0 0 m  c o n v e r t i b l e   b o n d 4  9   a p r i l 2 0 1 7         	 329    –
t o t a l        	 633    –
t h e   g r o up   i s s u e d   t w o   c o n v e r t ib l e   b o n d s   d ur in g   t h e   y ea r 
i      a   £ 3 5 0 m   fi x e d   r at e   6    b o n d   w a s   i s s u e d   o n   1   o c t o b e r   2 0 0 9   a n d   s e t t l e d   o n   5   o c t o b e r   2 0 0 9   r a i s in g   £ 3 4 1 m   n e t   o f   i s s u e   c o s t s      t h e   b o n d   i s 
c o n v e r t ib l e   at   t h e   o pt i o n   o f   t h e   h o l d e r    b e f o r e   o r   up o n   m a t ur i t y   in   o c t o b e r   2 0 1 4      c o n v e r s i o n   in t o   o r d in ar y   s h a r e s   w ill   o c c ur   at   a   p r e mi um   o f 
3 3    t o   t h e   g r o up ’ s   s h a r e   p r i c e   o n   t h e   d a t e   o f   i s s u an c e 
i i      a   £ 4 0 0 m   fi x e d   r at e   4  9    b o n d   w a s   i s s u e d   o n   2 2   a p r il   2 0 1 0   an d   s e t t l e d   o n   2 7   a p r il   2 0 1 0   r a i s in g   £ 3 91 m   n e t   o f   i s s u e   c o s t s      t h e   b o n d   i s  
c o n v e r t ib l e   at   t h e   o pt i o n   o f   t h e   h o l d e r    b e f o r e   o r   up o n   m a t ur i t y   in   a p r il   2 0 1 7      c o n v e r s i o n   in t o   o r d in ar y   s h a r e s   w ill   o c c ur   at   a   p r e mi um   o f   3 3  
t o   t h e   g r o up ’ s   s h a r e   p r i c e   o n   t h e   d a t e   o f   i s s u an c e 
t h e   g r o up   h o l d s   a n   i s s u e r   c all   o pt i o n   t o   r e d e e m   t h e   c o n v e r t ib l e   b o n d s   at   t h e ir   p r in c ip al   a m oun t s    t og e t h e r   w i t h   ac c r u e d   in t e r e s t    up o n 
f ul fi lm e n t   o f   c e r t a in   p r e  d e t e r min e d   c r i t e r i a      t h e   f a ir   v a lu e   o f   t hi s   o pt i o n   w a s   n e g li g ib l e   at   3 0   s e pt e m b e r   2 0 1 0      t h e   e q ui t y   p o r t i o n   o f   t h e   b o n d s  
o f   £ 8 3 m   i s   in c lu d e d   in   t h e   c o n v e r t ib l e   b o n d   r e s e r v e 
r e c o nc i l i a t io n 	 o f 	 f a c e 	 v a l u e 	 t o 	 c a r r y i n g 	 a m o u n t
        £ 3 5 0 m    £ 4 0 0 m 	 t o t a l	
        c o n v e r t i b l e  c o n v e r t i b l e	 c o n v e r t i b l e
        b o n d   b o n d	 b o n d s
        £m    £m 	 £ m	
c o n v e r t i b l e  b o n d  – f a c e v a l u e        350  400 	 750 
i s s u e c o s t        9  9	 18
c a s h  r e c e i v e d         341   391 	 	 732	
e q u i t y p o r t i o n         48  66	 114
a c c r e t i o n  i n t e r e s t         9     4 	 	13	
i s s u e  c o s t s a m o r t i s e d        2       –	 		2	
c a r r y i n g	a m o u n t         304 		 	 329 		 	 633	
20 current trade and other payables
          r e s t a t e d   r e s t a t e d
      	 3 0 	 s e p t e m b e r 	 	   3 0   s e p t e m b e r   3 0  s e p t e m b e r  
      	 2 0 1 0 	   2 0 0 9   2 0 0 8  
      	 £ m 	    £m   £m 
t r a d e  p a y a b l e s       	 1365 	   1421    1158 
d e f e r r e d a n d c o n t i n g e n t  c o n s i d e r a t i o n   n o t e  1 3  a        	 25	  23   20 
o t h e r p a y a b l e s      	 181	  232    233 
a m o u n t s o w e d  t o r e l a t e d  p a r t i e s       	 87 	  134   77  
o t h e r t a x e s  a n d  s o c i a l  s e c u r i t y  c o s t s       	 65 	  99    58 
a c c r u a l s a n d  d e f e r r e d  i n c o m e      	 1065    1005   1033  
c l i e n t m o n e y  r e c e i v e d  i n a d v a n c e       	 1513 	   1306   1494 
t o t a l      	 4301    4220   4073  
t r ad e   p a y ab l e s   a s   at   3 0   s e pt e m b e r   2 0 0 9   h a v e   b e e n   in c r ea s e d   b y   £ 5 8 m    2 0 0 8    £ 1 6 m    f o ll o w in g   t h e   r e s t at e m e n t   d i s c l o s e d   in   n o t e   1  b   i i   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 115
21 provisions for liabilities and charges
   aircraft    
   maintenance  restructuring  other  total 
   £m  £m  £m  £m 
at 1 october 2009   254  30  155  439 
provided in the year   198  55  94  347 
released in the year   12 2 14 28
unwinding of discounted amount   10  –  1  11 
costs incurred   115 26 76 217
foreign exchange   5 1  5 9
at 30 september 2010   330  58  155  543 
analysed as    
noncurrent   236  26  45  307 
current   94  32  110  236 
   330  58  155  543 
at 30 september 2009    
analysed as    
noncurrent   205  2  43 250 
current   49  28  112 189 
   254  30  155 439 
aircraft maintenance
in respect of aircraft provision is made for maintenance overhaul and repair costs of operating leased airframes engines and certain other 
components based on total anticipated costs over the useful economic life of the asset calculated by reference to costs experienced and 
published manufacturers’ data  the charge to the income statement is calculated by reference to the number of hours and cycles flown and  
by reference to the length of the full overhaul cycle  costs incurred are charged against the provision  neither the timing nor the value of the 
expenditure can be precisely determined but they can be averaged over time and over a fleet
the cost of major overhauls of owned airframes and engines is capitalised and depreciated over the period until the next scheduled  
major overhaul
restructuring
restructuring which includes severance payments relates to provisions arising as a result of reorganisation and restructuring plans that are 
irrevocably committed  further details of restructuring projects in the current year are set out in note 3  
the provision is expected to be utilised within 18 months of the balance sheet date
other
other provisions relate to litigation including provisions for contingent liabilities recorded on the merger of first choice onerous lease 
contracts that have been entered into in the ordinary course of business and other future obligations the amount or timing of which is 
uncertain  the majority of the provision is anticipated to be utilised within 12 months of the balance sheet date while the remainder is expected 
to be utilised within one to four years of the balance sheet date although the timing and payments related to individual litigation claims is 
estimated and is inherently uncertain
22 noncurrent trade and other payables
     30 september  30 september 
     2010  2009 
     £m  £m 
deferred and contingent consideration note 13a     30  48 
other payables     19  5 
accruals and deferred income     44  55 
total     93  108  financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
116 tui travel plc annual report  accounts 2010
23 share capital
     30 september  30 september 
     2010  2009 
     £m  £m 
authorised  
1999500020 2009 1999500020 ordinary shares of 10p each     200  200 
49998 2009 49998 redeemable preference shares of £1 each     –  – 
total     200  200 
     30 september  30 september 
     2010  2009 
     £m  £m 
issued and fully paid  
1118010670 2009 1118010670 ordinary shares of 10p each     112  112 
total     112  112 
as described more fully in note 35 the ultimate parent company tui ag is the beneficial owner of 5492 of the company’s issued ordinary 
share capital as at 30 september 2010
from time to time the company purchases its own shares on the market the timing of these purchases depends on market prices  primarily the 
shares are intended to be used for issuing shares under the company’s share award programme  buy and sell decisions are made on a specific 
transaction basis by the board the company does not have a defined share buyback plan
acquisition of own shares
the number of shares held by the group’s employee benefit trusts ebt at 30 september 2010 and at 30 september 2009 is disclosed in  
note 5d  
24 capital and reserves 
   convertible     equity non 
  share bond merger translation hedging retained holders controlling 
  capital reserve reserve reserve reserve deficit of parent interests total
  £m  £m £m  £m  £m £m  £m  £m  £m 
at 1 october 2008 as previously reported 112  –  2490  232  27  270 2591  5  2596 
restatement note 1bii  –  –  –  –  –  70 70 –  70
restated balance at 1 october 2008   112  –  2490  232  27  340 2521  5  2526 
lossprofit for the year  
as previously reported  –  –  –  –  –  25 25 1  24
restatement note 1bii  –  –  –  –  –  42 42 –  42
restated lossprofit for the year  –  –  –  –  –  67 67 1  66
other comprehensive incomeexpense  
for the year         
other comprehensive incomeexpense   –  –  –  128  102 206 180  1 179
restated total comprehensive income 
expense for the year  –  –  –  128  102 273 247 2 245
transactions with owners         
sharebased payment net of deferred tax –  –  –  –  –  16  16  –  16 
dividends  –  –  –  –  –  107 107 3 110
acquisition of noncontrolling interests  –  –  –  –  –  12 12 1 13
restated balance at 30 september 2009   112  –  2490  360  75 716 2171  3  2174  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 117
   convertible     equity non
  share  bond merger  translation  hedging  retained holders  controlling
  capital  reserve reserve  reserve  reserve  deficit of parent  interests  total 
  £m  £m £m  £m  £m £m  £m  £m  £m 
at 1 october 2009 as previously reported 112  –  2490  360  75 604 2283  3  2286 
restatement note 1bii  –  –  –  –  –  112 112 –  112
restated balance at 1 october 2009  112  –  2490  360  75 716 2171  3  2174 
loss for the year  –  –  –  –  –  104 104 –  104
other comprehensive expenseincome  
for the year         
other comprehensive expenseincome  
for the year  –  –  –  59 56  70 73 –  73
total comprehensive expenseincome  
for the year  –  –  –  59 56  174 177 –  177
transactions with owners         
sharebased payment net of deferred tax –  –  –  –  –  20 20  –  20 
acquisition of own shares  –  –  –  –  –  7 7 –  7
dividends   –  –  –  –  –  118 118 2 120
issue of convertible bonds net of 
deferred tax   –  83 –  –  –  –  83  –  83 
at 30 september 2010  112  83 2490  301  19 995 1972  1  1973 
restatement
please refer to note 1bii for a full explanation of the restatement
convertible bond reserve
the convertible bond reserve comprises the equity element of the convertible bonds and the related portion of the bonds’ issue costs  
see note 19  the equity element is calculated in accordance with the accounting policy described in note 1eii and is presented net of 
deferred tax  
merger reserve
the merger reserve arose on the business combination of tui travel plc tui travel first choice holidays plc first choice and the tourism 
division of tui ag on 3 september 2007  the merger reserve is nondistributable
other reserves
the sharebased payment credit for the year ended 30 september 2010 of £16m has an associated deferred tax credit of £4m 2009 £nil
during the year ended 30 september 2010 the group’s employee benefit trusts acquired shares at market value for consideration of £7m 
2009 £nil
details of dividends to equity holders of the parent debited to equity in the year are set out in note 9
exchange gains or losses arising on the translation to the group’s reporting currency are recorded in the translation reserve  gains or losses 
arising on cash flow hedges are initially recorded in the hedge reserve and are recycled to the consolidated income statement in accordance  
with the accounting policy in note 1f
the group also has a capital reserve of £01m at 30 september 2010 2009 £01m and a revaluation reserve of £02m 2009 £02m   
the capital reserve is nondistributable
noncontrolling interest
as described in note 13 the group purchased a 51 stake in wonderholding ab during the year  the noncontrolling interest is not  
considered material
25 financial instruments
a treasury risk overview
the group is exposed to a variety of financial risks
• market risk in respect of foreign currency rate risk jet fuel price risk and interest rate risk
• liquidity risk in respect of the group’s ability to meet its liabilities 
• credit risk in respect of recovery of amounts owing to the group and
• capital risk in respect of its capital structure and cost of capital financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
118 tui travel plc annual report  accounts 2010
the group’s key financial market risks are in relation to foreign currency rates and jet fuel price  currency risk results from the substantial  
crossborder element of the group’s trading and arises on sales purchases and borrowings that are denominated in a currency other than the 
functional currencies of individual group businesses  the risk is managed by the use of foreign exchange forward swap and option contracts  
the group’s exposure to jet fuel prices results from the aircraft fleet operations and is managed using commodity swaps and options
the group is exposed to interest rate risk that arises principally from the group’s floating rate aircraft leases and floating rate bank loans and 
cash balances  certain finance leases and loans have fixed interest rates
credit risk liquidity risk and capital risk are considered in notes 25d 25f and 25k respectively
the board of directors has overall responsibility for the establishment and oversight of the group’s risk management framework and for 
ensuring that the group has adequate policies procedures and controls to successfully manage the financial risks that it faces  these form part 
of the group’s overall risk management framework the framework  
incorporated within the framework’s terms of reference are the determination of all treasury policies and the monitoring of the effectiveness  
of those policies  group treasury implements the agreed policies on a daytoday basis  the procedures also stipulate the levels of authority 
applied to approving and to dealing the types of hedging financial instrument used to manage these exposures  transactions are only 
undertaken to hedge underlying exposures  financial instruments are not traded nor are speculative positions taken
the treasury position of the group including liquidity foreign exchange and fuel hedging exposure is managed centrally in accordance with 
policies appropriate to cover specific risks faced by each business unit and is the responsibility of the chief financial officer and group treasurer
group treasury conducts regular reviews of financial risks with business unit management teams and receives regular cash flow and where 
relevant jet fuel usage forecasts from each business unit to ensure hedging instruments match the currency or fuel requirements of each 
operating business  reports and forecasts for the group showing hedging instruments and forecast requirements are submitted monthly  
to the gmb and to each board meeting of tui travel plc
in line with its established policy the group has monitored throughout the year its counterparty exposure with individual financial institutions  
such counterparty risk can arise by way of cash deposited or derivative instruments traded
b currency risk management
the group is exposed to currency risk on sales purchases and borrowings that are denominated in a currency other than the functional 
currencies of individual group businesses which are principally sterling us dollar euro and swedish krona  
the group hedges its foreign currency exposures on a seasonal basis that is winter and summer with each season comprising a sixmonth 
period  at the start of a season the group will have hedged substantially all of its foreign currency exposure forecast sales and purchases and 
related assets and liabilities for that season using predominantly forward exchange contracts and optionbased instruments most with a 
maturity of less than one year from the reporting date  
in respect of other monetary assets and liabilities denominated in foreign currencies the group ensures that its net exposure is kept to an 
acceptable level principally by using forward contracts in respect of nonsterling denominated airline maintenance provision balances loan 
balances and deposits
the group publishes its consolidated financial statements in sterling and as a result it is also subject to foreign currency exchange translation 
risk in respect of the translation of the results and underlying net assets of its foreign operations into sterling
the following significant exchange rates to the group’s sterling presentation currency excluding the impact of hedged transactions are 
illustrative of the rates applied during the current and prior year
   average rate midspot rate
   
   year ended  year ended   
   30 september  30 september  30 september  30 september 
£1 gbp equivalent   2010   2009  2010   2009 
us dollar   1559 1560  1587 1600 
euro   1152 1149  1163 1094 
swedish krona   11307 12101  10631 11181 
as at 30 september 2010 the group has hedged forecast transactions for 34bn 2009 35bn and €15bn 2009 €12bn for periods up until 
winter 2011 principally relating to winter 2010 and summer 2011  
c commodity risk
fuel commodity risk arises from the group’s operation of aircraft
the group hedges its fuel commodity exposures on a seasonal basis being winter and summer with each season comprising a sixmonth 
period  at the start of a season the group will have hedged substantially all of its fuel commodity exposure for that season using predominantly 
commodity swaps or options most with a maturity of less than one year from the reporting date  
as at 30 september 2010 the group has hedged transactions for fuel of 17m metric tonnes 2009 18m metric tonnes for periods up until 
winter 2011
details of fuel forward derivative instruments are set out in note 25i wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 119
d credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group  credit risk 
arises from cash balances including bank deposits and cash and cash equivalents and derivative financial instruments as well as credit 
exposures to customers including outstanding receivables financial guarantees and committed transactions  credit risk is managed separately 
for treasury and operating related credit exposures  
the group minimises its financial credit risk through the application of risk management policies approved and monitored by the board   
while counterparties are limited to major banks and financial institutions group policy ensures that individual counterparty limits are adhered  
to and that there are no significant concentrations of credit risk  the group monitors the credit ratings of its counterparties where applicable 
as part of its ongoing assessment of its credit exposure  financial instruments are only transacted with major financial institutions with strong 
credit ratings of a1p1  
loans and other receivables exposures are managed locally in the operating units where they arise and credit limits are set as deemed 
appropriate for the customer  there is no material concentration of credit risk with respect to trade and other receivables as the group has 
a large number of internationally dispersed customers  
the carrying amount of financial assets represents the maximum credit exposure  the maximum exposure to credit risk at the balance sheet 
date was
      restated
     carrying value carrying value 
     30 september 30 september 
     2010 2009 
     £m £m 
trade and other receivables     814 939 
cash and cash equivalents note 17     1304 790 
derivatives – contracts used for hedging note 25i     165 284 
trade and listed investments note 12     56 47 
other investments note 17     – 36 
total     2339 2096 
the trade and other receivables balance for 2009 has been restated  trade receivables have been reduced by £54m as at 30 september 2009  
see note 16 and note 1bii 
the maximum exposure to credit risk for total trade and other receivables at the balance sheet date and by geographic region as well as their 
ageing is disclosed in note 16  trade and other receivables are shown net of provision for bad and doubtful debts of £55m 2009 £59m
cash cash equivalents and other investments principally comprise money market deposits and other shortterm investments  the investments 
are with counterparties with a strong credit rating of a1p1  at 30 september 2010 approximately 33 2009 51 of the group’s unrestricted 
cash and cash equivalents were invested with counterparties based in the united kingdom  a further 33 2009 0 was on deposit with tui 
ag the ultimate parent company of the group
trade and other receivables exclude prepaid accommodation and other prepayments which do not meet the definition of a financial instrument  
prepayments for hotel accommodation whilst not meeting the definition of a financial asset under ias 39 give rise to a risk similar to credit risk 
due to the inherent risk of the group not recovering the prepayment through full delivery of the related goods and services  from time to time 
prepayments can concentrate risk with specific counterparties which are based overseas  the carrying amount of prepayments which are 
presented within current and noncurrent assets forms the maximum credit exposure before taking into account any security or collateral  
held by the group  where appropriate the group obtains security collateral over the related accommodation property to mitigate credit risk  
at 30 september 2010 prepaid accommodation which is recoverable after more than one year was £115m 2009 £151m
e interest rate risk 
the group has exposure to interest rate risk arising principally on sterling us dollar and euro floating interest rates that are attached to the 
group’s floating rate aircraft leases and floating rate bank loans and cash balances
the group does not account for any fixed rate financial liabilities at fair value through profit and loss and the group does not have any interest 
rate swap derivative instruments financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
120 tui travel plc annual report  accounts 2010
the group’s loans and borrowings are measured at amortised cost with the exception of the other financial liabilities which are carried at  
fair value
    carrying carrying
    amount amount
    30 september 30 september
    2010 2009
financial instrument currency nominal interest rate year of maturity £m £m
convertible bonds sterling 4960 20142017 633 – 
shareholder loan eur 29 2011 575 840 
secured bank loans sterling 1662 20112018 15 19 
 eur 5160 20102016 2 1 
 usd 14 2011 7 9 
unsecured bank loans eur 1384 20102016 12 22 
    36 51 
finance leases eur 2084 20102046 236 187 
 usd 4555 20112015 29 2 
 mad 5965 20142017 2 2 
 aud 72118 20102015 2  1 
    269  192 
loan notes sterling 1045 20102012 1 1
 usd 6065 20112016 1 4 
 nzd 70  2011 – 1 
    2  6 
other financial liabilities eur 50 current 38 39 
total interestbearing liabilities    1553  1128 
analysed between
fixed rate instruments    921 215 
variable rate instruments    632 913 
    1553 1128 
the main movements between fixed rate and variable rate instruments in 2010 are the partial repayment of the shareholder loan variable rate 
and the issuance of the convertible bonds fixed rates
f liquidity risk 
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due  the group’s approach is to ensure that  
it will have sufficient liquidity to meet its liabilities when due under both normal and stressed circumstances  
the group’s liquidity peaks in july and august during the european summer holiday season with the liquidity low point being in december and 
january  to manage the liquidity position the group is able to draw cash advances under its existing bank facilities which principally comprise 
the following main sources of longterm debt funding
i the external bank revolving syndicated credit facilities totalling £1060m 2009 £910m plus bonding and letter of credit facilities totalling 
£90m 2009 £40m which all mature in june 2012 except for a £40m bonding and letter of credit facility in september 2011  from these 
facilities £166m has been utilised for letter of credit purposes at 30 september 2010 2009 £144m
ii a £350m convertible bond due 2014 issued on 1 october 2009 and settled on 5 october 2009 and
iii a £400m convertible bond due 2017 issued on 22 april 2010 and settled on 27 april 2010
the external bank revolving credit facility is used to manage the seasonality of the group’s cash flows and liquidity  cash positions liquidity and 
available facility headroom are monitored daily by the group treasury department
in addition to the above facilities a further £30m bonding and letter of credit facility which mature in june 2012 was signed on 15 october 2010  
the board remains satisfied with the group’s funding and liquidity position  fixed charges cover and the ratio of net debt to ebitda which the 
board believes to be the most useful measures of cash generation and gearing as well as being the main basis for covenants in our external 
credit facilities were met at the year end and throughout the year  fixed charges cover is defined as earnings before interest tax depreciation 
amortisation and operating lease rentals charge ebitdar divided by net interest plus operating lease rentals  ebitda is defined as earnings 
before interest tax depreciation and amortisation  both covenants are measured on an ‘underlying basis’ as defined in note 1biv wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 121
in respect of the delivery of new aircraft the group’s established strategy is to refinance new aircraft in advance of their delivery dates and 
therefore the group does not forecast to use internal cash resources for new aircraft purchases  details of aircraft purchase commitments at 
the year end are given in note 28
the following are the undiscounted contractual cash flows of financial liabilities including interest payments calculated using interest rates in 
force at each balance sheet date
 carrying contractual within between between more than
 amount cash flows 1 year 1 and 2 years 2 and 5 years 5 years
30 september 2010 £m £m £m £m £m £m
nonderivative financial liabilities
convertible bonds 633 982 41 41 461 439 
shareholder loan 575 580 580 – – – 
secured bank loans 24 26 10 2 14 – 
unsecured bank loans 12 13 9 2 2 – 
finance leases 269 311 154 21 71 65
loan notes 2 3 2 1 – – 
other financial liabilities 38 38 38 – – – 
trade and other payables 2678 2678 2630 48 – – 
derivative financial liabilities
contracts used for hedging 145 146 119 27 – – 
total 4376 4777 3583 142 548 504 
 carrying contractual within between between more than
 amount cash flows 1 year 1 and 2 years 2 and 5 years 5 years
30 september 2009 restated £m £m £m £m £m £m
nonderivative financial liabilities
shareholder loan 840 865 249 616 – – 
secured bank loans 29 31 6 10 15 – 
unsecured bank loans 22 27 15 3 6 3 
finance leases 192 206 33 147 23 3
loan notes 6 7 5 1 1 –
other financial liabilities 39 39 39 – – –
trade and other payables  2889 2889 2858 31 – – 
derivative financial liabilities
contracts used for hedging 302 348 307 38 3 – 
total 4319 4412 3512 846 48 6 
trade payables as at 30 september 2009 have been increased by £58m following the restatement disclosed in note 1bii 
the actual repayment of revolving credit facilities will vary  the timing reflected in the tables is based on the first date that the group can be 
required to settle the liability
trade and other payables exclude customers’ monies received in advance deferred income contingent consideration and other noncontractual 
payables
at 30 september 2010 the group had available undrawn committed borrowing facilities of £984m 2009 £806m comprising letters of credit 
guarantees and revolving floating rate credit facilities for cash borrowings  any noncompliance with covenants underlying the group’s financing 
arrangements could if not waived constitute an event of default with respect to any such arrangements  the group was in full compliance with 
its financial covenants throughout each of the periods presented  
undrawn facilities throughout all years presented are analysed as follows
     30 september  30 september 
     2010  2009 
     £m  £m 
expiring
within one year     1  40 
in more than one year but less than five years     983  766 
total     984  806  financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
122 tui travel plc annual report  accounts 2010
g analysis of total financial assets and financial liabilities
the tables below set out the group’s ias 39 classification for each of its financial assets and liabilities
 financial  derivative
 assets and  financial
 liabilities at fair  instruments available  financial
 value through  used in for sale  liabilities at
 income  hedge financial loans and amortised total
 statement accounting assets receivables cost carrying value
at 30 september 2010 £m £m £m £m £m £m
cash and cash equivalents –  –  –  1304  –  1304 
borrowings due within one year –  –  –  –  719 719
borrowings due after more than one year –  –  –  –  796 796
derivative assets 10  155  –  –  –  165 
derivative liabilities 12 133 –  –  –  145
other financial assets 29  –  27  814  –  870 
other financial liabilities 59 –  –  –  2657 2716
total 32 22  27  2118  4172 2037
 financial  derivative
 assets and  financial
 liabilities at fair  instruments available  financial
 value through  used in for sale  liabilities at
 income  hedge financial loans and amortised total
 statement accounting assets receivables cost carrying value
at 30 september 2009 restated £m £m £m £m £m £m
cash and cash equivalents –  –  –  790  –  790 
borrowings due within one year –  –  –  –  288 288
borrowings due after more than one year –  –  –  –  801 801
derivative assets –  284  –  –  –  284 
derivative liabilities –  302 –  –  –  302
other financial assets –  –  47  975  –  1022 
other financial liabilities 59 –  –  –  2869 2928
total 59 18 47  1765  3958 2223
other financial assets and other financial liabilities have been restated as described in note 1bii  other financial assets have reduced by 
£54m see note 16 and other financial liabilities have increased by £58m see note 20 at 30 september 2009 
following the amendments to ifrs 7 and ias 39 the group has represented the 2009 table in note 25g  the main changes are to split the 
assets and liabilities previously classified in the held for trading column into financial assets and liabilities at fair value through income statement 
and derivative financial instruments used in hedge accounting  the group’s derivative assets £284m and liabilities £302m at 30 september 
2009 have been classified as derivative financial instruments used in hedge accounting and the l’tur put option of £39m has been classified  
as a financial liability at fair value through income statement  in addition the deferred consideration liability of £20m at 30 september 2009  
has been reclassified from amortised cost to financial assets and liabilities at fair value through income statement to reflect a more appropriate 
categorisation under ifrs 7 fair value hierarchy  there are no other changes to the table  the reclassifications between categories of financial 
instrument have no impact on any of the primary statements in either year  
other financial assets comprise trade receivables other receivables which are receivable within and after more than one year as well as other 
investments due within one year  other financial liabilities comprise trade payables accruals and other financial liabilities which are payable 
within and after more than one year
interest payable on financial instruments carried at amortised cost comprising bank loans loans from parent and finance lease liabilities  
is disclosed in note 4
derivatives presented under held for trading under ias 39 classifications are analysed between cash flow hedges and economic hedges  
in note 25i wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 123
h fair values of financial assets and financial liabilities 
the fair values of financial assets and liabilities together with carrying amounts shown in the consolidated balance sheet at 30 september 2010 
and at 30 september 2009 are as follows
   restated
  30 september 2010 30 september 2009
   
   carrying  fair carrying  fair
   amount  value  amount   value 
   £m  £m  £m  £m 
cash and cash equivalents   1304  1304  790  790 
borrowings
convertible bond   633 705 –  – 
shareholder loan   575 575 840 840
bank loans    36 36 51 51
loan notes   2 2 6 6
finance lease liabilities   269 271 192 188
derivative financial instruments
forward exchange contracts used for hedging
– assets   153  153  271  271 
– liabilities   127 127 173 173
commodity contracts used for hedging
– assets   12  12  13  13 
– liabilities   18 18 129 129
other financial assets
trade and other receivables   814  814  939  939 
trade and listed investments   56  56  47  47 
other investments   –  –  36  36 
other financial liabilities
other financial liabilities   38 38 39 39
current trade and other payables   2630 2630 2858 2858
noncurrent trade and other payables   48 48 31 31
total   2037 2111 2223 2219
the basis for fair value measurement of financial assets and liabilities is set out in note 1y to the consolidated financial statements
30 september 2009 trade and other receivables has been reduced by £54m see note 16 and trade and other payables have been increased 
by £58m see note 20 as a result of the restatement described in note 1bii
fair value measurements
the adoption of the amendment to ifrs 7 in the year ended 30 september 2010 requires enhanced disclosures about fair value measurements 
of financial instruments through the use of a threelevel fair value hierarchy that prioritises the valuation techniques used in fair value calculations
the levels can be broadly described as follows
• level 1 – use of unadjusted quoted prices in active markets for identical assets or liabilities
• level 2 – use of observable inputs other than quoted prices included within level 1 such as quoted prices for similar assets or liabilities  
in active markets
• level 3 – use of inputs not based on observable market data but reflecting management’s own assumptions about pricing the asset  
or liability
the group maintains policies and procedures to value instruments using the most relevant data available  if there are multiple inputs available 
that fall into different levels of the hierarchy the instrument is categorised on the basis of the lowest level input financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
124 tui travel plc annual report  accounts 2010
the group’s financial assets and liabilities excluding finance lease liabilities measured at fair value at 30 september 2010 are categorised  
as follows
      total fair 
   level 1  level 2  level 3  value 
at 30 september 2010   £m  £m  £m  £m 
assets
trade and listed investments   19  –  37  56 
derivative financial instruments   –  165  –  165 
total assets   19  165  37  221 
liabilities
derivative financial instruments   –  145 –  145
other financial liabilities   –  –  59 59
total liabilities   –  145 59 204
total   19  20  22 17 
the movements in level 3 instruments measured on a recurring basis for the year ended 30 september 2010 are as follows
    trade 
    and listed  other financial total level 3
    investments liabilities instruments
    £m £m £m
at 30 september 2009    14  59 45
deferred consideration settlement    –  2  2 
net creditcharge included in the income statement    30  3 27 
adjustment through goodwill    –  1 1
reclassification to noncurrent interest bearing receivables    7 –  7
foreign exchange movements in equity    –  2  2 
at 30 september 2010    37  59 22
trade and listed investments
as at 30 september 2010 £37m of trade and listed investments were categorised as level 3 instruments  these consist of the group’s 
investment in the airline group £29m and other trade investments in the equity of unlisted companies £8m  both are valued using 
assumptions not observable in the market and so have been categorised as level 3 instruments in the fair value hierarchy see note 12
the level 1 trade investment is the group’s holding in air berlin plc see note 12
derivative assets and liabilities
derivatives are valued in the market using discounted cash flow techniques
these techniques incorporate inputs at levels 1 and 2 such as interest rates and foreign currency exchange rates  these market inputs are used 
in the discounted cash flow calculation incorporating the instrument’s term notional amount and discount rate and taking credit risk into 
account
as significant inputs to the valuation are observable in the markets these instruments are categorised as level 2 in the hierarchy
other financial liabilities
the put option to acquire the remaining equity stake in l’tur tourismus ag £38m is classified as an other financial liability with changes in  
fair value included in operating profit  the deferred consideration balance £21m is also measured at fair value based on the relevant contracts  
as all of these financial liabilities are valued using assumptions not observable in the market they are categorised as level 3 instruments in the 
fair value hierarchy
reclassification to noncurrent interest bearing receivables
£7m of loan notes owed to the group by the airline group limited have been reclassified from trade and other investments to noncurrent 
interest bearing receivables during 2010 wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 125
i derivative instruments
at the balance sheet date the fair value of the group’s derivative financial assets and liabilities was as follows
 30 september 2010 30 september 2009
  
 assets  liabilities  total  assets  liabilities  total 
 fair  fair  fair  fair  fair  fair 
 value  value  value  value  value  value 
 £m  £m  £m  £m  £m  £m 
cash flow hedges
foreign exchange forwards 80  101 21 238  167 71 
foreign exchange options 3  2 1  –  1 1
commodity options 1  –  1  3  13 10
commodity swaps 11  18 7 10  116 106
 95  121 26 251  297 46
economic hedges      
foreign exchange forwards 60  12 48  33  5 28 
held at fair value in profit  loss 10  12 2 –  – –
total 165  145  20  284  302 18
analysed as
current 144  122 22  271  284 13
noncurrent 21  23 2 13  18 5
total 165  145 20  284  302 18
the group has hedged a proportion of its currency requirements for the winter 2010 and summer 2011 seasons using collecting forward option 
instruments which are carried at fair value through profit and loss  all other derivatives are held as cash flow hedges or to offset changes in the 
value of items recognised in the consolidated balance sheet  speculative positions are not undertaken
the following table indicates the periods in which the cash flows associated with derivatives are expected to occur  future cash flows have been 
estimated based on spot rates and prices at 30 september 2010  the net cash flows are shown net for each instrument
   projected cash flows
   
   less than   between   between   over  
   1 year  1 and 2 years  2 and 5 years  5 years 
30 september 2010   £m  £m  £m  £m 
derivative financial assets
foreign exchange forwards   132  16  2  – 
foreign exchange options   2  –  –  – 
commodity swaps   8  –  –  – 
   142  16  2  – 
derivative financial liabilities
foreign exchange forwards   99 20 –  – 
commodity options   1 –  –  – 
commodity swaps   19 7 –  – 
   119 27 –  – 
total   23  11 2  – 
   projected cash flows
   
   less than   between   between   over  
   1 year  1 and 2 years  2 and 5 years  5 years 
30 september 2009   £m  £m  £m  £m 
derivative financial assets
foreign exchange forwards   252  11  –  – 
commodity swaps   5  –  –  – 
   257  11  –  – 
derivative financial liabilities
foreign exchange forwards   148 14 2 – 
commodity options   27 2 –  – 
commodity swaps   132 22 1 – 
   307 38 3 – 
total    50 27 3 –  financial statements
notes to the consolidated financial statements continued
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126 tui travel plc annual report  accounts 2010
ineffectiveness 
ineffectiveness in respect of cash flow hedges has been recognised in the consolidated income statement for the year ended 30 september 
2010  ineffectiveness for the year ended 30 september 2010 comprised a credit of £2m 2009 credit £5m relating to fuel hedging and this  
is included within underlying operating profit  
aircraft order book derivatives
last year us dollar cash flow hedges in connection with the group’s aircraft order books were fully unwound and settled early in a planned 
process  payments for new aircraft in us dollars are now planned to be funded by way of proceeds from sale and leaseback transactions and 
future us dollar currency requirements are not required to be forward hedged
the cumulative gain on aircraft order book derivatives from the period when these hedges were effective up until the termination of these 
hedges was recognised in the hedging reserve  net gains relating to aircraft orders delivered or cancelled in the prior year comprising 10 boeing 
787s were recycled to the consolidated income statement immediately and were recorded in separately disclosed items note 3  there were no 
deliveries in 2010 and the remaining amount of £11m net of deferred taxation remains in reserves available to be recycled to match the delivery 
of the related aircraft  
j amounts recognised directly in equity
the following amounts have been recognised directly in equity during the year
     year ended  year ended 
     30 september  30 september 
     2010  2009 
     £m  £m 
hedging reserve
effective portion of changes in fair value of cash flow hedging instruments     33  60
fair value of cash flow hedges transferred to the consolidated income statement    41  81
     74  141
deferred tax on the above items recognised directly in equity is shown in note 7iii
k capital management
the board’s policy has been to maintain a strong capital base in order to maintain investor creditor and market confidence and to sustain  
future development of the business  the group has a roadmap to deliver sustainable longterm value to shareholders with a return on invested 
capital greater than the group’s pretax weighted average cost of capital  progress in achieving this objective has been made during this year  
by improving underlying operating margins to 143 which increases return on invested capital roic to 99 2009 restated 86
roic is defined as ‘underlying nopat’‘average invested capital’
underlying nopat is underlying net operating profit after a tax charge at the effective annual rate
‘underlying’ as a measure of operating profit is defined in note 1biv
average invested capital comprises an average of the net assets at the start and end of the year of the group adjusted to add back net debt 
cumulative goodwill impairment charges and defined benefit pension scheme net deficits  there is also an adjustment to adjust net debt to 
reflect a seasonal average cash balance  calculations for the current and prior years are 
      restated
     year ended year ended
     30 september 30 september 
     2010  2009 
    note £m  £m 
underlying operating profit excluding impact of volcanic disruption  consolidated income statement 447  401 
taxation at the underlying effective rate of 27 2009 28      121  112
underlying nopat     326  289 
net assets  consolidated balance sheet 1973  2174 
net debt    26 249  338 
seasonal net debt adjustment     300  300 
cumulative goodwill impairment charge 2010 spain £5m and italy £7m  
2009 sunsail clubs £7m 2008 tuifly £112m    10 131  119 
defined benefit pension net deficit    5c 493  500 
invested capital     3146  3431 
average invested capital     3289  3379 
roic     99  86 
pro forma unaudited underlying operating profit note 1biii 
net assets includes the liability element £633m of the convertible bond
roic in 2009 prior to the restatement described in note 1bii was 92 wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 127
the board seeks to maintain a balance between the levels of debt borrowings undertaken and the advantages and security afforded by a sound 
capital position  an analysis of net debt at the year end is in note 26
certain subsidiaries have external capital requirements as a result of applicable travel industry regulations in their jurisdictions  compliance  
with these regulations is mandatory for the relevant operating businesses in those countries in order that they are able to continue trading   
key countries with such mandatory capital requirements are france belgium the netherlands germany and australia  the capital requirements 
in these countries stipulate maintaining minimum equitynet asset levels in operating subsidiaries  all such capital requirements were complied 
with as at 30 september 2010  none of these requirements are individually or collectively significant to the overall group and do not place any 
significant restriction on the group’s funding or operations
underlying operating profit underlying nopat net assets invested capital average invested capital and roic have been restated  see note 
1biv
l sensitivity analysis
the sensitivity analysis is for illustrative purposes only and should not be considered a projection of likely future events and gains or losses
the sensitivity analysis includes the following assumptions
• changes in market interest rates only affect interest income or expense of variable financial instruments
• changes in market interest rates only affect interest income or expense in relation to financial instruments with fixed interest rates if these 
are recognised at fair value
• changes in market interest currency and fuel rates affect the fair value of derivative financial instruments designated as hedging instruments 
and the majority of hedges are expected to be highly effective with the main exception being collecting fx forward contracts not qualifying 
for hedge accounting and
• changes in the fair value of derivative financial instruments and other financial assets or liabilities are estimated by discounting the future 
cash flows to net present values using appropriate market rates prevailing at the year end
the group has used a sensitivity analysis technique that measures the estimated change to the consolidated income statement and equity of a 
1 100 basis points difference in market interest rates or a 10 strengthening or weakening in sterling against all other currencies and in fuel 
prices from the rates applicable at the balance sheet date with all other variables remaining constant
interest rate risk
under the above assumptions a 100 basis points increase in interest rates would result in a £5m increase in interest expense in the consolidated 
income statement or equity 2009 no material impact  a 100 basis points reduction in interest rates is not considered reasonably possible
currency risk
similarly under the above assumptions a 10 strengthening or weakening of sterling against all principal exchange rates would not have altered 
the reported loss before tax september 2009 loss reduced by £4m profit increased by £5m respectively principally relating to the translation 
of the income statements of overseas subsidiaries  equity before tax would have decreased by £210m 2009 £376m or increased by £215m 
2009 £376m respectively  
fuel price risk
the sensitivity analysis is based on a 10 increase or decrease in fuel prices and the sensitivity will differ correspondingly if the fuel markets are 
more or less volatile  under these assumptions with a 10 increase or decrease in the unit price of fuel profit before tax would neither increase 
nor decrease materially because of the fuel price hedging policy and appropriate pricing adjustments  equity before tax would increase by 
£79m 2009 £70m or decrease by £78m 2009 £70m respectively
m litigation risk
the group has a policy to mitigate the financial risk of litigation and disaster through insurance with third party providers and the use of captive 
insurance companies  the group’s exposure to risk is capped by single event and aggregate limits with insurance in place for exposures above 
these limits  
the group provides for outstanding claims including settlement expenses using a consistent methodology based upon historical claims 
patterns average claims amounts external legal advice and future expectations   financial statements
notes to the consolidated financial statements continued
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128 tui travel plc annual report  accounts 2010
26 movements in cash and net debt
   cash  amounts due    other
   and cash convertible to related   finance  financial 
   equivalents bonds parties bank loans loan notes leases liabilities total 
   £m  £m  £m  £m  £m  £m  £m £m  
at 1 october 2008   1130  –  840 185 9 187 45 136
cash movement   352 –  91  143  6  22  23  67
noncash movement   4 –  29  –  2 –  12 11 
foreign exchange   16  –  120 8 1 26 5 144
arising on acquisition   –  –  –  1 –  1 –  2
at 30 september 2009   790  –  840 51 6 192 39 338
cash movement   561  750 222  13  4  31  –  81 
noncash movement   –  117  –  –  –  121 –  4
foreign exchange   47 –  43  2  –  13  1  12 
at 30 september 2010   1304  633 575 36 2 269 38 249
noncash movements relate to the equity portion of the convertible bond issues and the inception of new finance leases arising on capital 
expenditure 2009 financial liabilities arising from the issue of a put option in respect of noncontrolling interest shares
27 operating lease commitments
total group obligations under noncancellable operating lease contracts are payable as follows
   land  aircraft ships  land  aircraft ships 
   and  yachts and  and   yachts and 
   buildings  equipment  buildings  equipment 
   30 september  30 september 30 september 30 september
   2010  2010 2009  2009 
   £m  £m  £m  £m 
total commitments under noncancellable operating leases expiring
within one year   226  369  190  406 
between one and five years   512  728  444  962 
later than five years   245  107  240  230 
total   983  1204  874  1598 
operating lease commitments in respect of land and buildings principally comprise commitments in respect of the group’s retail estate
the future commitment under the group’s floating rate aircraft operating leases at 30 september 2010 was £122m 2009 £120m
in total the group operates 122 aircraft on operating leases at 30 september 2010 2009 128 aircraft  yachts are held on operating leases  
in tui marine as part of the group’s sunsail and the moorings fleets  cruise ships are held on operating leases in the uk source market
28 capital and other commitments
capital commitments
the group’s capital commitments are as follows
     30 september  30 september 
     2010  2009 
     £m  £m 
contracted but not provided for     9  22 
in addition to the above items at the year end the group had contracted to purchase 40 2009 50 aircraft with initial deliveries to start in the 
last quarter of the calendar year 2010  at list price the total order value was us4439m 2009 us6156m
the group intends to refinance these aircraft in advance of their delivery dates and therefore does not expect to use its own cash resources for 
their purchase
the group’s joint ventures and associates had no material capital commitments at 30 september 2010 2009 £nil wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 129
29 contingent liabilities
the group is at any time defending a number of actions against it arising in the normal course of business  provision is made for these actions 
where this is deemed appropriate  no actions which are outstanding at 30 september 2010 are expected to have a material effect on these 
accounts  the directors consider that adequate provision has been made for all known liabilities
30 related party transactions
apart from with its own subsidiaries which are included in the consolidated financial statements tui travel plc in carrying out its ordinary 
business activities maintained direct and indirect relationships with related parties including consolidated or related companies of its ultimate 
parent company tui ag  these companies delivered services to companies in the group
the group also undertook transactions with its joint ventures and associated companies  these transactions related primarily to incoming 
agencies and hotel companies used by the group’s tour operators  the income and expenses arising from transactions with associates and joint 
ventures are included within the appropriate sector revenue or costs as presented in the segmental analysis
all transactions with related parties were executed on an arm’s length basis and under normal conditions of trade with independent third parties
shareholder loan
a shareholder loan was advanced to the company by tui ag on 3 september 2007  the loan bears interest at euribor plus a margin 
currently 19 per annum increasing sixmonthly to a maximum of 20 per annum  the company can make voluntary repayments at any  
time during the term of the loan subject to a minimum repayment of €10m and the giving of 30 days’ notice  the drawn balance of the loan  
at 30 september 2010 was €669m 30 september 2009 €919m not including accrued interest payable  it is repayable in two instalments 
1 december 2010 €509m and 30 april 2011 €160m
hotel framework agreement
as part of the relationship arrangements between the company and tui ag at the time of the business combination both parties entered into 
the hotel framework agreement which governs the commercial relationship between tui ag and the company in respect of the distribution  
of hotel beds forming part of the hotel portfolio interests retained by tui ag  under the hotel framework agreement tui deutschland tui 
travel plc’s german tour operating business continues to have access to the robinson hotel portfolio and to the distribution of such portfolio’s 
hotel beds in europe on the basis of the existing levels of exclusivity and seasonal arrangements between tui deutschland and robinson as 
practised prior to the business combination  in addition tui deutschland agrees to provide the same services in relation to the distribution of 
the beds as it did prior to the business combination and shall be entitled to use certain robinson trademarks in connection with these services  
the hotel framework agreement expires on 31 october 2011 and discussions regarding a new agreement are currently being undertaken
trademark licence agreement
the trademark licence agreement incorporates trademark licences granted from tui ag to members of the tui tourism group in relation to  
tui tourism’s use of the tui name and logo and other trademarks from within tui ag’s portfolio of trademarks used in the former tui tourism’s 
business  licence fees payable under each licence are an annual fee equal to 002 of the average annual gross turnover of the relevant licensee 
under the relevant trademarks measured over a threeyear period  total licence fees charged for the year ended 30 september 2010 were  
£3m 2009 £3m  each licence’s standard terms are for five years with an option for the relevant licensee to extend for a further five years on  
the same terms
details of transactions with related parties and balances outstanding at the balance sheet date are set out in the tables below
  revenue expenses
   
   year ended  year ended  year ended  year ended 
   30 september  30 september  30 september  30 september 
   2010  2009  2010  2009 
   £m  £m  £m  £m       
related party
ultimate parent tui ag   11  7  70  71 
hotel and resort subsidiaries of tui ag   13  5  403  384 
other subsidiaries joint ventures and associates of tui ag   7  8  98  63 
joint ventures and associates of the group   10  7  120  151 
total   41  27  691  669  financial statements
notes to the consolidated financial statements continued
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130 tui travel plc annual report  accounts 2010
  receivables outstanding payables outstanding
   
   30 september  30 september  30 september  30 september 
   2010  2009  2010  2009 
   £m  £m  £m  £m       
related party
ultimate parent tui ag   385  6  594  885 
hotel and resort subsidiaries of tui ag   4  1  46  56 
other subsidiaries joint ventures and associates of tui ag   4  6  12  14 
joint ventures and associates of the group   30  13  10  19 
total   423  26  662  974 
the £385m receivable balance outstanding from the ultimate parent tui ag at 30 september 2010 includes a £370m 2009 £nil cash deposit 
returnable on demand
payables outstanding with related parties are reported in notes 19 and 20 and receivables outstanding are reported in note 16 and note 17
details regarding the investment in togebi holdings limited are included in note 12
in accordance with ias 24 key management functions within the group and the gmb were related parties whose remuneration had to be listed 
separately  the compensation paid in respect of key management personnel including directors was as follows
     year ended  year ended 
     30 september  30 september 
     2010  2009 
     £m  £m 
shortterm employee benefits     15 17 
postretirement benefits     2 2 
sharebased payments     9 10 
total     26 29 
details of directors’ remuneration are given in the remuneration report  
31 key accounting estimates and judgements
the preparation of consolidated financial statements under adopted ifrss requires the directors to make estimates and judgements that  
affect the reported amounts of assets and liabilities the disclosure of contingent assets and liabilities and the reported amount of revenue and 
expenses during the year  the directors evaluate the estimates and judgements on an ongoing basis  such estimates and judgements are based 
upon historical experience and other factors it believes to be reasonable under the circumstances  actual results may differ from estimates
management has discussed with the audit committee the development selection and disclosure of the group’s critical accounting policies and 
estimates and the applications of these policies and estimates  key estimates and judgements have been made in respect of the following areas
a estimates
intangible assets – goodwill carrying value
a full impairment review has been performed of all goodwill and intangibles balances held across the group on a cash generating unit basis   
the impairment review is performed on a ‘value in use’ basis which requires estimation of future net operating cash flows the time period  
over which they will occur an appropriate discount rate and an appropriate growth rate  further details including sensitivity analysis are given  
in note 10 and the accounting policy is set out in note 1p
defined benefit pension plans
a qualified independent actuary undertakes the estimation of the present value of the group’s obligations under defined benefit pension 
schemes using assumptions taken from a range of possible actuarial assumptions  these assumptions may not be borne out in practice 
especially due to the long timescales involved  in particular the valuation of scheme assets is based on the fair value at the balance sheet date  
as these assets are not intended to be sold in the shortterm their value may change significantly prior to realisation  in reviewing the work of 
the qualified independent actuary management was required to exercise judgement to satisfy itself that appropriate weight had been afforded 
to macroeconomic factors  details of the actual assumptions used including sensitivity analysis are set out in note 5c
derivative financial instruments
judgement is required in the assessment of prospective effectiveness and specifically in the assessment of the probability of forecast 
transactions both at hedge inception and during the period over which hedge accounting is adopted  the fair value of derivative financial 
instruments can also involve judgement  where appropriate external valuations from financial institutions are undertaken to support the 
carrying value of such items  details of sensitivity analysis are set out in note 25l wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 131
b judgements
separately disclosed items
separately disclosed items are those significant items which in management’s judgement are highlighted by virtue of their size or incidence to 
enable a full understanding of the group’s financial performance  such items are included within the income statement caption to which they 
relate notes 3 and 4
other asset carrying values
management performs an assessment at each balance sheet date of all material assets across the group for signs of impairment  key judgement 
areas include the carrying values of land and buildings aircraft ships yachts and motorboats trade receivables and prepaid accommodation  
the recovery of these assets is dependent on estimated future cash flows receivable and the provision of future services or goods by third 
parties  useful economic lives and residual values are subject to regular management review  
business combinations
judgement and estimation is required in the identification and valuation of separable assets and liabilities on acquisitions  in particular 
judgement and estimation is required in the identification and valuation of separable intangible assets being brands orders books and customer 
databases and determining appropriate useful economic lives for these assets  judgement and estimation is also required in determining 
contingent consideration payable in respect of acquisitions  details of acquisitions are set out in note 13
liabilities
in accounting for provisions judgement is required in determining occurrence probability maturity and level of risk  judgement and estimation 
is required in determining aircraft maintenance restructuring and onerous lease provisions  due to the volume of transactions and the 
materiality of period end accruals judgement is also required in respect of the recognition and derecognition of airline and accommodation 
operating accruals  details of provisions made and the basis on which the provision has been calculated is disclosed in note 21 and the 
accounting policy is set out in note 1t
sharebased payments
judgement and estimation is required in determining the fair value of shares at the date of award  the fair value is estimated using valuation 
techniques which take into account the awards’ term the riskfree interest rate and the expected volatility of the market price of the company’s 
shares  details of sharebased payments and the assumptions applied are disclosed in note 5d and the accounting policy is set out in  
note 1yix
noncurrent assets and disposal groups held for sale
the classification of noncurrent assets and disposal groups as ‘held for sale’ requires judgement in determining whether the planned disposal  
is highly probable and able to be realised within 12 months  the measurement of held for sale assets at their fair value less costs to sell can  
also require significant judgement if there is no active market
lease accounting
judgement is required in the initial classification of leases as either operating leases or finance leases and in respect of finance leases 
determining the appropriate discount rate implicit in the lease to discount minimum lease payments  in respect of certain leases classified  
as finance leases it has not been possible to reliably estimate lessors’ residual values and management has been required to independently 
estimate an appropriate discount rate  judgement is also required in respect of the treatment of gains and losses arising on the sale and 
leaseback of assets  the accounting policy for leases is set out in notes 1g 1h and 1q
taxation
the group has from time to time contingent tax liabilities arising from trading and corporate transactions in the uk and overseas jurisdictions  
after taking appropriate external advice the group makes provision for these liabilities based on the probable level of economic loss that may  
be incurred and which is reliably measurable  judgement is also required in the assessment of the future recoverability of tax losses and 
recognition of deferred tax assets  details of unrecognised tax losses are given in note 14
recoverable amounts of deposits and prepayments
judgements have been made in respect of the volumes of future trading with hoteliers and the creditworthiness of those hoteliers in order  
to assess the recoverable amounts of deposits and prepayments made to those hoteliers
fair value measurements
management has to make judgements regarding the valuation of some financial instruments that use inputs that are not observable in active 
markets  these are disclosed in note 25g   financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
132 tui travel plc annual report  accounts 2010
32 principal operating subsidiaries
other than as stated below all the principal operating subsidiaries listed are wholly owned  principal operating subsidiaries are those which  
in the opinion of the directors significantly affected the sector’s results and net assets during the year  the directors consider that those 
companies not listed are not significant in relation to the sector specified  tui uk limited is presented within the mainstream sector northern 
region to reflect its principal operations but the company also includes certain uk activity and specialist businesses at 30 september 2010
subsidiary country nature of business
mainstream sector  
mainstream – northern region 
fritidsresor ab sweden t our operator
oy finnmatkat ab finland t our operator 
star tour as denmark t our operator
startourstjernereiser as norway t our operator
thomson airways limited united kingdom airline
tui canada holdings inc holding co of sunwing travel group inc canada holding company
tui uk limited united kingdom t our operator
tui uk retail limited united kingdom travel agent
tuifly nordic ab sweden airline
mainstream – central europe
berge und meer touristik gmbh germany t our operator
hapaglloyd express gmbh germany airline
l’tur tourismus ag 700 germany t our operator
tui fly gmbh germany airline
tui suisse ag switzerland t our operator
tui austria holding gmbh austria t our operator
tui aviation gmbh germany leasing company
tui deutschland gmbh germany t our operator
tui leisure travel gmbh germany travel agent
tui österreich gmbh austria t our operator
tui poland sp zoo poland t our operator
mainstream – western europe
corsair sa france airline
groupe marmara sas 989 france t our operator
jetair nv belgium t our operator
tui airlines belgium nv belgium airline
tui airlines nederland bv netherlands airline
tui travel belgium nv belgium t our operator
tui nederland nv netherlands t our operator
voyages touraventure sa france t our operator
specialist  emerging markets sector
aventuria sas france t our operator
citalia holidays limited united kingdom t our operator
easy market spa italy online travel agent
educational tours inc usa t our operator
eefc inc trading as europe vacations usa  t our operator 
hayes  jarvis travel limited includes trading names thomson tailor made and jetsave united kingdom  t our operator 
i viaggi del turchese srl italy t our operator
interspecialists slu trading as royal vacaciones  ambassador tours spain t our operator 
new horizons tour  travel inc usa t our operator
studentcitycom inc usa t our operator
tcs and starquest expeditions inc usa t our operator
tourinter sas france t our operator
travcoa corporation usa t our operator
travel turf inc trading as world class vacations usa t our operator
your man tours inc usa t our operator wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 133
subsidiary country nature of business
activity sector
adventure tours australia group pty ltd australia t our operator
crown blue line limited united kingdom t our operator
eac language centres uk limited united kingdom language teaching
ttss limited previously called edwin doran limited united kingdom t our operator
exodus travels limited united kingdom t our operator
fanfirm pty limited australia t our operator
gullivers sports travel limited united kingdom t our operator
hampstead school of english limited united kingdom language teaching
mariner international travel inc usa t our operator
porter and haylett limited united kingdom boat owning company
peregrine adventures pty ltd australia t our operator
prestige boating holidays limited  irish republic t our operator
quark expeditions inc usa t our operator
real travel limited united kingdom t our operator
ski bound limited united kingdom t our operator
sportsworld group limited united kingdom t our operator
sunsail limited united kingdom t our operator
sunsail worldwide sailing limited united kingdom t our operator
williment travel group limited new zealand t our operator
world challenge holdings limited united kingdom t our operator
yachts international limited british virgin islands t our operator
zegrahm expeditions inc usa t our operator
accommodation  destinations sector
beds on line slu spain online accommodation
hotelbeds slu spain online accommodation
hotelbeds dominicana sa dominican republic  destination services
hotelbeds spain slu spain destination services
hotelbeds product slu spain online accommodation
hotelbeds usa inc usa destination services
late rooms limited united kingdom late accommodation
tantur turizm seyahat as turkey destination services
transfar agencia de viagens e turismo unipessoal lda portugal destination services
tui españa turismo sa 990 spain destination services financial statements
notes to the consolidated financial statements continued
wwwtuitravelplccom
134 tui travel plc annual report  accounts 2010
33 lossearnings per share 
the basic loss per share is calculated by dividing the result attributable to ordinary shareholders by the applicable weighted average number  
of shares in issue during the year excluding those held in the employee benefit trusts  the diluted loss per share is calculated on the result 
attributable to ordinary shareholders divided by the adjusted potential weighted average number of ordinary shares which takes account of  
the outstanding share awards and the impact of the conversion of the convertible bonds where their conversion is dilutive  the additional 
underlying earnings per share measures have been presented to provide the reader of the accounts with a better understanding of the results
basic and diluted loss per share from continuing operations is as follows
     weighted loss
  weighted loss loss average no earnings
 loss average no earnings earnings  of shares per share
 earnings of shares per share restated  restated  restated 
 2010  2010  2010  2009  2009  2009 
 £m  millions  pence  £m  millions  pence 
basic and diluted loss per share 86 1107  78 53 1107  48
acquisition related expenses and impairment of  
goodwill net of tax 127  –  115  47  –  42 
separately disclosed items net of tax 203  –  183  227  –  206 
basic underlying earnings per share 244  1107  220  221  1107  200 
effect of dilutive options –  11  02 –  11  02
effect of convertible bond net of tax 32  144  01  –  –  – 
diluted underlying earnings per share 276  1262 219  221  1118  198 
basic and diluted loss per share from the discontinued operation is as follows
  weighted   weighted
  average no loss  average no earnings 
 loss of shares per share loss of shares per share 
 2010  2010  2010  2009  2009  2009 
 £m  millions  pence  £m  millions  pence 
basic and diluted loss per share 18 1107 16 14  1107  13 
for statutory measures of loss per share in both the current and prior year the effect of options is antidilutive  the antidilutive effect is not 
taken into account and basic loss per share and diluted loss per share are both disclosed as 78p 2009 loss of 48p for continuing operations 
and 16p 2009 loss of 13p for the discontinued operation  the fully diluted weighted average number of shares on a statutory basis is  
1323 million 2009 1118 million  the diluting effect of options in both years and the convertible bond in 2010 only is included solely to 
calculate diluted underlying earnings per share
2009 loss per share basic and diluted underlying earnings per share basic and diluted have been restated as a result of the restatement in 
note 1bii  the impact of the restatement on basic and diluted loss per share is to increase the loss by 38p per share from 10p per share  
to 48p per share  basic underlying earnings per share decreases by 38p per share from 238p per share to 200p per share  diluted underlying 
earnings per share decreases by 38p from 235p per share to 198p per share
reconciliation of loss for the year from continuing operations attributable to ordinary shareholders from continuing operations
      restated 
     year ended   year ended 
     30 september  30 september 
     2010  2009 
     £m  £m 
loss attributable to ordinary shareholders from continuing operations      86 53 
result attributable to noncontrolling interests from continuing operations     –  1 
loss for the year from continuing operations     86 52 
2009 numbers have been restated as described in note 1bii  none of the discontinued loss for the year is attributable to noncontrolling 
interests 2009 none wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 135
nongaap measure
reconciliation of underlying operating profit to underlying earnings
      restated 
     year ended  year ended 
     30 september  30 september 
     2010  2009 
    note £m  £m 
underlying operating profit     447  401 
net underlying financial expenses    4  110 77
underlying profit before tax     337  324 
underlying tax charge at 27 2009 28     93 102
underlying profit for the year     244  222
attributable to ordinary shareholders     244  221
attributable to noncontrolling interests     –  1
underlying profit for the year     244  222
2009 reconciliation has been restated as described in note 1bii  the underlying numbers shown are as described in note 1biv and exclude 
the impact of the volcano ash as described in note 1biii
34 post balance sheet events
• paul bowtell chief financial officer will be resigning from the tui travel plc board with effect from 31 december 2010 and will be replaced 
as chief financial officer by will waggott
• acquisitions details of acquisitions and disposals since the balance sheet date are set out in note 13
• a £30m bonding and letter of credit facility which matures in june 2012 was signed on 15 october 2010
35 ultimate parent company
the ultimate parent company is considered to be tui ag a company registered in berlin and hanover federal republic of germany   
at 30 september 2010 tui ag was the beneficial owner of 5492 of the ordinary share capital of the company 
in addition a number of bonds are held on tui ag’s behalf and if converted this would give rise to 52309463 of new shares  on a fullydiluted 
basis if all bonds were converted tui ag’s shareholding would be 5037 at 30 september 2010
tui ag prepares consolidated financial statements which include the results of the group  the accounting reference date of tui ag is 
30 september  copies of the tui ag financial statements are publicly available and can be obtained from the registered office of this company 
situated at karlwiechertallee 4 30625 hanover federal republic of germany wwwtuitravelplccom
136 tui travel plc annual report  accounts 2010
financial statements
company balance sheet
at 30 september 2010
     30 september  30 september 
      2010  2009 
    note £m £m 
fixed assets
investment in subsidiary undertakings    d 918  911 
total investments     918   911 
current assets
derivative financial instruments     6  30 
debtors    e 1145  234 
cash at bank and in hand     –  36 
     1151  300 
creditors amounts falling due within one year    f 967 311
net current assetsliabilities     184  11
total assets less current liabilities     1102  900 
creditors amounts falling due after more than one year    g 638 631
provision for liabilities and charges    h 19 – 
net assets     445  269 
capital and reserves
share capital    i 112 112 
profit and loss account    j 227 127 
convertible bond reserve    j 83 – 
other reserves    j 23 30 
equity shareholders’ funds     445 269 
the financial statements were approved by a duly authorised committee of the board of directors on 1 december 2010 and were signed on its 
behalf by
paul bowtell
chief financial officer  wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 137
notes to the company’s financial statements  
for the year ended 30 september 2010
the company’s own equity instruments or is a derivative that will be 
settled by the company exchanging a fixed amount of cash or other 
financial assets for a fixed number of its own equity instruments
derivative financial instruments
derivative financial instruments are stated at fair value  the gain or 
loss on remeasurement to fair value is recognised immediately in the 
income statement  however where derivatives qualify for hedge 
accounting recognition of any resultant gain or loss depends on the 
nature of the item being hedged
convertible bond
the convertible bonds are split into two components a debt 
component and a component representing the embedded derivatives 
in the bond  the debt component represents the group’s liability  
for future interest coupon payments and the redemption amount  
the embedded derivatives represent the value of the option that 
bondholders have to convert into ordinary shares of the company  
these derivatives were valued on inception and recognised in the 
convertible bond reserve in equity
the debt component of the convertible bonds are measured at 
amortised cost and therefore increase as the present value of the 
interest coupon payments and redemption amount increases with a 
corresponding charge to finance cost  the debt component decreases 
by the cash interest coupon payments made  the embedded 
derivatives are measured at fair value at each balance sheet date  
and changes in fair value are recognised in the income statement  
issue costs are apportioned between the liability and derivative 
components of a convertible bond based on the allocation of 
proceeds to the liability and derivative components when the 
instruments are first recognised
sharebased payment
the company operates sharebased payment schemes for the 
employees of its subsidiaries  the fair value of shares awarded to 
employees of the company is recognised as an employee expense 
with a corresponding increase in equity  the employee expense is 
recharged to fellow group subsidiaries  the company makes awards 
of its own shares to the employees of its subsidiaries and as such 
recognises an increase in the cost of investment in its subsidiaries 
equivalent to the equitysettled sharebased payment charge 
recognised in its subsidiaries’ financial statements with the 
corresponding credit being recognised directly in equity  the fair 
value is measured at the award date and is spread over the period 
during which the employee becomes unconditionally entitled to the 
awards  calculating the fair value takes into account various factors 
including the expected volatility of the shares the dividend yield and 
the risk free interest rate  further information on the share schemes 
is provided in note 5 to the consolidated financial statements
the increase in investments and credit to equity for the year ended 
30 september 2010 is £14m 30 september 2009 £16m  
transactions of the company’s employee benefit trust are included  
in the company’s financial statements  in particular the trust’s 
purchases and sales of shares in the company are debited and 
credited directly to equity
a accounting policies
basis of preparation
the following accounting policies have been applied consistently in 
dealing with items which are considered material in relation to the 
company’s financial statements
accounting convention
the financial statements have been prepared in accordance with 
applicable uk accounting standards and under the historical cost 
convention  the financial statements have been prepared on the 
going concern basis which assumes that the company will continue  
in operational existence for the foreseeable future
the company has taken advantage of the exemption under section 
408 of the companies act 2006 from presenting its own profit and 
loss account  the profit after tax included in the financial statements 
of the company determined in accordance with the act was £214m 
2009 loss of £33m
under financial reporting standard frs no 1 revised the 
company is exempt from the requirement to prepare a cash flow 
statement as its cash flows are included within the published 
consolidated statement of cash flows of tui travel plc
the company has taken advantage of the exemption contained within 
frs 29 and has not provided the required financial instruments 
disclosure on the basis that the group’s consolidated financial 
statements include consolidated ifrs 7 disclosures which are 
compliant with the requirements of frs 29
foreign currencies
transactions in foreign currencies are translated at the foreign 
exchange rate ruling at the date of the transaction  monetary assets 
and liabilities denominated in foreign currencies at the balance sheet 
date are translated to sterling at the foreign exchange rate ruling at 
that date  foreign exchange differences arising on translation are 
recognised in the income statement  nonmonetary assets and 
liabilities that are measured in terms of historical cost in a foreign 
currency are translated using the exchange rate at the date of the 
transaction  nonmonetary assets and liabilities denominated in 
foreign currencies that are stated at fair value are translated to 
sterling at foreign exchange rates ruling at the dates the fair values 
were determined
investments
in the company’s financial statements investments in subsidiaries are 
stated at cost less provision for impairment  dividends received and 
receivable are credited to the company’s profit and loss account
interestbearing borrowings
interestbearing borrowings are recognised initially at fair value less 
attributable transaction costs  subsequent to initial recognition 
interestbearing borrowings are stated at amortised cost with any 
differences between cost and redemption value being recognised  
in the income statement over the period of the borrowings on an 
effective interest rate basis
classification of financial instruments issued
financial instruments issued by the company are treated as equity 
only to the extent that they meet the following conditions they 
include no contractual obligation upon the company to deliver cash  
or other financial assets or to exchange financial assets or financial 
liabilities with another party under conditions that are potentially 
unfavourable to the company and where the instrument will or may 
be settled in the company’s own equity instruments it is either a non
derivative that includes no obligation to deliver a variable number of  wwwtuitravelplccom
138 tui travel plc annual report  accounts 2010
financial statements
notes to the company’s financial statements  
for the year ended 30 september 2010 continued
related parties
for the purpose of these financial statements parties are considered to be related to the company if the company has the ability directly or 
indirectly to control the party or exercise significant influence over the party making financial and operating decisions or vice versa or where 
the company and the party are subject to common control or common significant influence  related parties may be individuals or other entities  
the company has taken advantage of the exemption contained within frs 8 and has not therefore disclosed transactions or balances with 
entities which are whollyowned subsidiaries
taxation
the charge for taxation is based on the profit or loss for the period and takes into account taxation deferred because of timing differences 
between the treatment of certain items for taxation and accounting purposes
except as otherwise required by accounting standards full provision without discounting is made for all timing differences which have arisen  
but not reversed at the balance sheet date  timing differences arise when items of income and expenditure are included in tax computations  
in periods different from their inclusion in the financial statements
dividends on shares presented within shareholders’ funds
dividends distributed to the company’s shareholders are recognised as a liability and deducted from equity in the group’s financial statements 
in the period in which the dividends are appropriately authorised and approved for payment and are no longer at the discretion of the company  
unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements
auditors’ remuneration
the company’s 2010 audit fee was £25000 2009 £25000
b directors’ remuneration and employees
details of directors’ remuneration gains made by them on vesting of share awards amounts receivable by them under longterm incentive 
schemes and pension entitlements in the current and prior year are contained in the audited section of the remuneration report and in note 5 
of the consolidated financial statements  the company had seven employees 2009 nine  details of all share awards issued by the company 
are given in note 5 of the consolidated financial statements
c dividends
details of dividends paid and proposed by the company in the current and prior year and details of dividends proposed subsequent to the 
balance sheet date are given in note 9 of the consolidated financial statements
d investments
      shares in 
      subsidiaries 
      £m 
cost
at 1 october 2009      911 
additions      14 
disposals      3
at 30 september 2010      922 
provision for diminution in value
at 30 september 2009      – 
impairment      4
at 30 september 2010      4
net book value
at 30 september 2009      911 
at 30 september 2010      918 
additions represent sharebased payment liabilities incurred  the costs of the sharebased schemes which are operated for employees of  
the company’s subsidiaries are borne by the subsidiaries subject to local accounting standards  the company recognises an increase in the 
investment in the subsidiary and a credit to retained earnings in accordance with frs 20 sharebased payments
the investment in travelmood limited a wholly owned subsidiary of £4m has been fully written down in the year  this follows a review of  
the carrying value by the directors in light of the intended strategic direction and expected trading of the company in the foreseeable future
details of the principal operating subsidiaries held directly and indirectly by the company and of companies acquired in the year ended 
30 september 2010 can be found in notes 32 and 13 of the group’s consolidated financial statements   wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 139
e debtors
     30 september  30 september
     2010  2009
     £m  £m 
amounts owed by ultimate parent company     370  – 
amounts owed by group undertakings     705  234 
corporation tax recoverable     35  – 
prepayments     2  – 
other debtors     33  – 
total     1145  234 
amounts owed by ultimate parent
amounts owed by ultimate parent comprise a loan of £370m  the loan is unsecured bears interest at euribor plus a margin of 19 has no 
fixed date of repayment and is repayable on demand  
amounts owed by group undertakings
amounts owed by group undertakings are unsecured includes £360m 2009 £226m that bears interest at 60 2009 15 and matures on 
5 october 2010 £9m 2009 £nil that bears interest at 70 and matures on 29 october 2010  £336m 2009 £8m is unsecured bears no 
interest has no fixed date of repayment and is repayable on demand
f creditors amounts falling due within one year
     30 september  30 september
     2010  2009
     £m  £m 
bank overdraft     112  – 
deferred and contingent consideration     12  4 
amounts owed to ultimate parent company     589  252 
amounts owed to group undertakings     234  55 
accruals and deferred income     20  – 
total     967  311 
bank overdraft
bank overdraft is unsecured repayable on demand and bears interest at overnight libor rate plus a margin of 2
amounts owed to group undertakings
amounts owed by group undertakings are unsecured interest free have no fixed date of repayment and are repayable on demand  
amounts owed to ultimate parent company
amounts owed to the ultimate parent comprise a shareholder loan of €669m 2009 €919m current account of €14m 2009 €15m and interest 
payable of €2m 2009 €9m  the loan bears interest at euribor plus a margin of 19 2009 15 per annum  the company can make 
voluntary repayments at any time during the term of the loan subject to a minimum repayment of €10m and the giving of 30 days’ notice  the 
drawn balance of the loan at 30 september 2010 was €669m 2009 £919m not including interest payable  it is repayable in two instalments 
1 december 2010 €509m and 30 april 2011 €160m
g creditors amounts falling due after more than one year
     30 september  30 september 
     2010  2009 
     £m  £m 
convertible bonds     633  – 
deferred and contingent consideration     5  20 
amounts owed to ultimate parent company     –  611 
total     638  631 
details of the convertible bonds are given in note 19 of the consolidated financial statements  the accounting under uk gaap and ifrs  
is the same wwwtuitravelplccom
140 tui travel plc annual report  accounts 2010
financial statements
notes to the company’s financial statements  
for the year ended 30 september 2010 continued
h provision for liabilities and charges
     30 september  30 september 
     2010  2009 
     £m  £m 
other timing differences     19 –
total provision for liabilities and charges     19 –
at 1 october     – –
deferred tax charge to profit and loss account      8  –
deferred tax charge to equity      27 –
at 30 september     19 –
other timing differences comprise the deferred tax charge on the equity portion of the convertible bonds and sharebased payments
i share capital
     30 september  30 september 
     2010  2009 
     £m  £m 
authorised share capital  
1999500020 2009 1999500020 ordinary shares of 10p each     200  200 
49998 2009 49998 redeemable preference shares of £1 each     –  – 
total     200  200 
allotted called up and fully paid share capital  
1118010670 2009 1118010670 ordinary shares of 10p each     112  112 
total     112  112 
j capital and reserves 
   profit and convertible other 
  share capital loss account bond reserve reserves total
  £m  £m   £m  £m £m 
at 30 september 2008  112  267  – 14   393 
sharebased payment costs  –  –  – 16   16 
loss for the year  –  33 – –   33
dividends paid  –  107 – –   107
at 30 september 2009  112  127  – 30   269 
acquisition of shares  –  –  – 7  7
disposal on award of shares  –  4  – 18  14
sharebased payment costs  –  –  – 18   18 
profit for the year  –  214  – –   214 
equity portion of convertible bonds  –  –  83 –   83 
dividends paid  –   118 – –   118
at 30 september 2010  112   227  83 23   445 
the sharebased payment credit for the year ended 30 september 2010 of £14m 2009 £16m has an associated deferred tax credit of £4m 
2009 £nil
during the year ended 30 september 2010 the group’s employee benefit trusts acquired shares at market value for consideration of £7m 
2009 £nil
details of dividends debited to equity in the year are set out in note 9 wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
tui travel plc annual report  accounts 2010 141
k contingent liabilities
under the terms of guarantees given to the civil aviation authority and other relevant authorities by the company in respect of certain 
subsidiaries in the event of default the company could be held liable to the extent of the subsidiaries’ net trading liabilities at the time  
of default
the company and its subsidiaries is at any time defending a number of actions against it arising in the normal course of business  provision  
is made for these actions where this is deemed appropriate  no actions which are outstanding at 30 september 2010 are expected to have a 
material effect on these accounts  the directors consider that adequate provision has been made for all known liabilities
where the company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group the company 
considers these to be insurance arrangements and accounts for them as such  in this respect the company treats the guarantee contract as  
a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee
l related party transactions
apart from with its own subsidiaries which are included in the consolidated financial statements tui travel plc in carrying out its ordinary 
business activities had transactions with its ultimate parent company tui ag which delivered services to companies in the group
all transactions with related parties were executed on an arm’s length basis and under normal conditions of trade with independent third parties
details of transactions with related parties and balances outstanding at the balance sheet date are set out in the tables below
  interest received expenses
   
   year ended  year ended  year ended  year ended 
   30 september  30 september  30 september  30 september 
   2010  2009  2010  2009 
   £m  £m  £m  £m       
related party
ultimate parent tui ag   4  –  22  46 
total   4  –  22  46 
  debtors creditors
   
   year ended  year ended  year ended  year ended 
   30 september  30 september  30 september  30 september 
   2010  2009  2010  2009 
   £m  £m  £m  £m       
related party
ultimate parent tui ag    370  –  589  863 
total    370  – 589  863 
m post balance sheet events
paul bowtell will be resigning as a director of the company with effect from 31 december 2010
subsequent to 30 september 2010 the company has sold ttss limited previously edwin doran travel limited for a total consideration  
of £6m to another company within the tui travel plc group
details of further post balance sheet events relevant to the company and its group are given in note 34 of the consolidated financial statements wwwtuitravelplccom
142   t u i  t r a v e l  p l c  a n n u a l  r e p o r t    a c c o u n t s  2 0 1 0
shareholder information
shareholder profiles
shareholder profiles
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 t r 1    n o t i fi c a t i o n s   o f   t h e   f o l l o w i n g   v o t i n g   r i g h t s   o f   t h e   is s u e d   o rd i na r y   s ha r e   c a p i t a l   o f   t h e   c o m p a n y 
          s h a r e s
            
t u i a g         	 615882193 	 5509
a l l i a n c e  b e r n s t e i n  i n v e s t m e n t s  l p           42423212  379
m a r a t h o n a s s e t  m a n a g e m e n t           34073455  305
financial calendar
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in t e r im   r e s ul t s      m a y   2 0 1 1
p r e limin ar y   r e s ul t s        d e c e m b e r   2 0 1 1
solicitors
h e r b e r t   s mi t h
bankers
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c i t i g r oup   n a 
r o y a l   b ank   o f   s c o t l a n d   p l c 
s o c i é t é   g é n é r al e
registrars and transfer office
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a s p e c t   h o u s e 
s p e n c e r   r o ad 
l a n c in g   b n 9 9   6 d a 
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in t e r n a t i o n a l     4 4    0    1 2 1   4 1 5   7 1 6 1 
w e b s i t e    w w w  s h a r e v i e w  c o  uk  
company website
w w w  t ui t r a v e lp l c  c o m
secretary and registered office
a   l   jo hn 
t u i   t r a v e l   h o u s e 
c r a w l e y   b u s in e s s   q u a r t e r 
f l e min g   w a y 
c r a w l e y 
w e s t   s u s s e x     r h 1 0   9 q l 
t e l e p h o n e      0 1 2 9 3   6 4 57 0 0 
fac s imil e          0 1 2 9 3   6 4 57 0 4
r e g i s t e r e d   n um b e r   6 0 7 2 8 7 6
auditors
k p m g   a u d i t   pl c
merchant bankers
l a z ar d   b r o t h e r s      c o   l imi t e d 
d e u t s c h e   b ank
stockbrokers
r b s   h o a r e   g o v e t t   l imi t e d 
d e u t s c h e   b ank
contacts and advisers wwwtuitravelplccom
group at a glance strategic overview business performance governance financial statements shareholder information
t u i  t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0  143
shareholder information
shareholder discount
quark expeditions
b e s t   p r i c e   o n   t h e   w w w  q u a r k e x p e d i t i o n s  c o m   w e b s i t e   p lu s   a   f ur t h e r  
5    d i s c o un t   p e r   ad ul t   o n   a ll   d e p a r t ur e s 
skibound
b e s t   p r i c e   o n   t h e   w w w  s k ib o un dh o li d a y s  c o  uk   w e b s i t e   p lu s   a   f ur t h e r  
d i s c o un t   o f   £ 2 0   p e r   ad ul t   o r   £ 4 0   p e r   b o o k in g   o n   a ll   o ur   f r e n c h   c lub 
h o t e l   d e s t in a t i o n s 
   d i s c o u n t s   a r e   n o t   v a l i d   o n   a c c o m m o d a t i o n  o n l y   b o o k i n g s   a n d   c a n n o t   b e   u s e d   i n   c o n j u n c t i o n  
w i t h   a n y   d i s c r e t i o n a r y   d i s c o u n t s    g r o u p   s a v i n g s   o r   o t h e r   p r o m o t i o n a l   o f f e r s 
in   o r d e r   t o   q u ali f y   f o r   t h e   d i s c oun t    p r i v at e   s h a r e h o l d e r s    in c lu d in g  
t h o s e   h o l d in g   t hr o u g h   a   n o min e e   ac c o un t    mu s t   h o l d   at   l ea s t   5 0 0 
o r d in ar y   s h a r e s   in   t h e   c o m p an y   o n   t h e   d a t e   o f   b o o k in g   t h e   h o li d a y  
a n d   mu s t   h a v e   b e e n   o n   t h e   r e g i s t e r   o f   s h a r e h o l d e r s   f o r   a   minimum  
p e r i o d   o f   o n e   y ea r   o n   t h at   d a t e 
t o   r e g i s t e r   f o r   y o ur   d i s c o un t   c all   e q uini t i   o n   0 8 7 1   3 8 4   2 0 3 0    m o n d a y  
t o   f r i d a y   0 8  3 0  1 7  3 0       y o u   w ill   b e   r e q uir e d   t o   p r o v i d e   d e t a il s   t o 
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g i v e n   a   uni q u e   c o d e 
t o   m a k e   a   b o o k in g   c all   u s   o n    0 8 4 4   8 0 0   3 1 0 4    m o n d a y   t o   f r i d a y   
0 9  0 0  1 8  0 0  s a t ur d a y   0 9  0 0  1 7  0 0       y o u   w ill   b e   a s k e d   f o r   y our   uni q u e  
c o d e   an d   y o ur   d i s c oun t   w ill   b e   a p p li e d 
share dealing service
a n   e x e c u t i o n  o nl y   s h a r e  d ealin g   s e r v i c e   f o r   t h e   p urc h a s e   a n d   s a l e   o f 
t u i   t r a v e l   p l c   s h a r e s   i s   a v a il ab l e   f r o m   n a t w e s t   s t o c k b r o k e r s     
n a t w e s t   s t o c k b r o k e r s   i s   a u t h o r i s e d   a n d   r e g ul a t e d   b y   t h e   f in an c i a l  
s e r v i c e s   a u t h o r i t y   a n d   i s   a   m e m b e r   o f   t h e   l o n d o n   s t o c k   e x c h an g e  
a n d   p l u s     
f o r   d e t a il s    p l ea s e   c o n t ac t 
n a t w e s t   s t o c k b r o k e r s 
p r e mi e r   pl ac e    
2 ½   d e v o n s hir e   s q u ar e 
l o n d o n   e c 2 m   4 b a 
t e l e p h o n e   0 8 0 8   2 0 8   4 4 3 3
find out more
t u i   t r a v e l   p l c   h a s   a   c o r p o r at e   w e b s i t e   w hi c h   c an   b e   ac c e s s e d  
t hr o u g h   w w w  t ui t r a v e lp l c  c o m
e li g ib l e   s h a r e h o l d e r s   a r e   e n t i t l e d   t o   t h e   f o ll o w in g   d i s c oun t s    w hi c h   a r e 
s ubj e c t   t o   c h an g e    w h e n   b o o k in g   h o li d a y s   t hr o u g h   o ur   d e d i c at e d 
s h a r e h o l d e r   d i s c o un t   l in e 
b e s t   p r i c e   o n   t h e   d e d i c at e d   w e b s i t e   p lu s   a   f ur t h e r   d i s c o un t   o f   £ 2 0   p e r 
ad ul t   o r   £ 4 0   p e r   b o o k in g    c r ui s e    s h o r t  m e d i um  h a ul   d e s t in a t i o n s    o r  
£ 4 0   p e r   ad ul t   o r   £ 8 0   p e r   b o o k in g    l o n g  h a ul   d e s t in a t i o n s    f o r   t h e 
f o ll o w in g   
   f ir s t   c h oi c e       w w w  fi r s t c h oi c e  c o  uk
   t h o m s o n         w w w  t h o m s o n  c o  uk
   t h o m s o n   w o r l d w i d e   w w w  t h o m s o n w o r l d w i d e  c o m
   c i t ali a         w w w  c i t a li a  c o m  
   j e t s a v e       w w w  j e t s a v e  c o  uk
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b e s t   p r i c e   o n   t h e   w w w  t h o m s o n  c o  uk   w e b s i t e   p lu s   a   f ur t h e r   d i s c oun t  
o f   £ 1 0   p e r   p e r s o n   f o r   a   r e t ur n   j o ur n e y    s h o r t  m e d i um  h a ul  
d e s t in a t i o n s    o r   £ 2 0   p e r   p e r s o n   f o r   a   r e t ur n   j o ur n e y    l o n g  h a ul  
d e s t in a t i o n s  
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b e s t   p r i c e   o n   a ll   h o t e l s   o n   t h e   w w w  h o t e l o pi a  c o  uk   w e b s i t e   p lu s   a n 
ad d i t i o n al   1 4    d i s c oun t 
trek america grand american adventures
b e s t   p r i c e   o n   t h e   w e b s i t e   w w w  t r e k am e r i c a  c o m   p lu s   a n   ad d i t i o n al 
1 0    d i s c o un t 
the moorings
b e s t   p r i c e   o n   t h e   w w w  m o o r in g s  c o m   w e b s i t e   p lu s   a   f ur t h e r   d i s c oun t  
o f   £ 2 0   p e r   ad ul t   o r   £ 4 0   p e r   b o o k in g    s h o r t  h a ul   d e s t in a t i o n s    o r   £ 4 0 
p e r   ad ul t   o r   £ 8 0   p e r   b o o k in g    l o n g  h a ul   d e s t in a t i o n s  
sunsail
b e s t   p r i c e   o n   t h e   w w w  s un s a il  c o  uk   w e b s i t e   p lu s   a   f ur t h e r   d i s c o un t   o f 
£ 2 0   p e r   ad ul t   o r   £ 4 0   p e r   b o o k in g    s h o r t  h a ul   d e s t in a t i o n s    o r   £ 4 0   p e r  
ad ul t   o r   £ 8 0   p e r   b o o k in g    l o n g  h a ul   d e s t in a t i o n s  
le boat
b e s t   p r i c e   o n   t h e   w w w  l e b o at  c o  uk   w e b s i t e   p lu s   a   f ur t h e r   d i s c oun t   o f  
£ 2 0   p e r   ad ul t   o r   £ 4 0   p e r   b o o k in g   o n   a ll   d e s t in a t i o n s     
real gap gap year for grown ups
b e s t   p r i c e   o n   t h e   w w w  r ea l g ap  c o  uk   w e b s i t e   p lu s   a   f ur t h e r   d i s c oun t 
o f   1 0       wwwtuitravelplccom
144   t u i t r a v e l p l c a n n u a l r e p o r t   a c c o u n t s  2 0 1 0
shareholder information
index
h
h ea l t h   an d   s af e t y   2 7
i
in d e p e n d e n t   a u d i t o r s ’   r e p o r t   6 3
in v e s t m e n t   c a s e   i f c
k
k e y   p e r f o r m an c e   in d i c a t o r s     1 8
m
m a in s t r ea m   s e c t o r   0 4
m a r k e t   o v e r v i e w   1 2
n
n o t e s   t o   t h e   c o n s o li d at e d   fi n a n c i a l   s t at e m e n t s   6 9
n o min a t i o n   c o m mi t t e e     5 0
o
o u t l o o k   1 3    4 1
p
p e o p l e   2 4
p e o p l e      o p e r at i o n al   e f f e c t i v e n e s s   1 6
p e n s i o n s     8 7
p r in c ip a l   r i s k s   2 0
p r in c ip a l   o p e r at in g   s ub s i d i a r i e s   1 3 2
p r o d u c t      c o n t e n t   1 4
r
r e s t at e m e n t   o f   p r i o r   y ea r s ’   ac c o un t s   7 0
r e mun e r at i o n   c o m mi t t e e   5 3
r e mun e r at i o n   r e p o r t   5 3
r i s k     2 0
s
s e g m e n t al   p e r f o r m an c e   3 3    8 3
s e p ar at e l y   d i s c l o s e d   i t e m s   8 5
s h a r e h o l d e r   p r o fi l e s   1 4 2
s h a r e h o l d e r   d i s c o un t   1 4 3
s p e c i a li s t      a c t i v i t y   s e c t o r   0 6
s p e c i a li s t      e m e r g in g   m a r k e t s   s e c t o r   5    3 9
s t r at e g y   2    1 4
s t r at e g i c   im p e r at i v e s   1 4
s t r at e g i c   o v e r v i e w   0 8
s u s t a in ab l e   d e v e l o p m e n t   2 8
s up p li e r s   4 4
t
t a x     9 6
t u i   t r a v e l   o v e r v i e w   0 2
t o t al   s h a r e h o l d e r   r e t ur n   5 6
w
w h o   w e   a r e   0 2
w h e r e   w e   o p e r at e     0 3
a
a c c o m m o d a t i o n      d e s t in a t i o n s   s e c t o r   0 5    3 7
a c c o un t in g   p o li c i e s   6 9
a c q ui s i t i o n s     1 7    1 0 6
a c t i v i t y   s e c t o r   0 5    3 8
a nn u a l   g e n e r al   m e e t in g     4 4
a u d i t   c o m mi t t e e     5 0
a u d i t o r s     4 6
b
b al an c e   s h e e t     6 6
b o ar d   c o m mi t t e e s     4 9
b o ar d   o f   d ir e c t o r s     4 2
b r an d s   0 3
b u s in e s s   p e r f o r m an c e   3 2
c
c h a ir m an ’ s   s t at e m e n t     0 8
c h ar i t a b l e   g i v in g   4 4
c hi e f   e x e c u t i v e ’ s   s t at e m e n t   0 9
c hi e f   e x e c u t i v e ’ s   in t e r v i e w   1 0
c o ll ea g u e s   2 4
c o n s o li d at e d   b al a n c e   s h e e t   6 6
c o n s o li d at e d   in c o m e   s t at e m e n t   6 4
c o n s o li d at e d   s t at e m e n t   o f   c a s h   fl o w s   6 8
c o n s o li d at e d   s t at e m e n t   o f   c h an g e s   in   e q ui t y   6 7
c o n s o li d at e d   s t at e m e n t   o f   c o m p r e h e n s i v e   in c o m e   6 5
c o n s um e r   s e n t im e n t   1 3
c o n t ac t s   an d   ad v i s e r s   1 4 2
c o r p o r a t e   g o v e r n a n c e   r e p o r t     4 8
c ur r e n t   t r ad in g   4 0
d
d ir e c t o r s ’   bi og r ap hi e s   4 3
d ir e c t o r s ’   r e p o r t   4 4
d ir e c t o r s ’   r e s p o n s ibili t i e s   4 7
d ir e c t o r s ’   r e mun e r a t i o n   57
d i s t r ib u t i o n      b r an d s   1 5
d i v i d e n d s     0 8
e
e ar nin g s   p e r   s h a r e     0 8
e m e r g in g   m a r k e t s   6    1 7
f
f in an c i a l   c al e n d ar     1 4 2
f in an c i a l   hi g hli g h t s     0 7
f in an c i a l   s t at e m e n t s   6 4
g
g o v e r n a n c e   4 2
g r o up   o v e r v i e w   0 2
g r o up   m a n a g e m e n t   b o ar d   2 4
g r o up   p e r f o r m an c e     3 2
g r o w t h      c api t a l   a ll o c a t i o n   1 7 delivered by global3digital
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wwwtuitravelplccom
the investment case
reasons to invest in tui travel plc london stock exchange ticker code tt
experienced management team
each of our businesses is led by highly experienced management teams giving us real strength and depth  
of leadership  our leaders have demonstrated excellent track records of building strong businesses and 
creating value
marketleading brands
we have some of the most recognised and highly trusted brands in the industry which reduces the  
cost of customer acquisition and means we are highly attractive to our accommodation providers and 
distribution partners
marketleading positions
we are either the number one or number two tour operator in almost all of our mainstream source 
markets including leadership positions in the uk germany france belgium and the netherlands
market consolidation
consolidation in some of our key markets has improved the structure of the industry helping to remove 
excess supply from the market  
economies of scale
we buy over 150 million bednights per year making us one of the largest distributors of accommodation 
globally  our scale gives us a competitive advantage when negotiating with suppliers allowing us to offer 
excellent value to our customers
turnaround potential
in 2009 we identified £142m of turnaround opportunities as we took strategic actions to improve margins 
in a number of underperforming businesses  after delivering £53m of these in 2010 a further £89m of 
opportunities for margin improvement remains  
exposure to higher growth specialist travel
almost one third of our profits are generated by our portfolio of specialist businesses which enjoy high 
growth and margin characteristics including specialist tour operators offering unique experiential travel 
experiences and online accommodation providers  
emerging markets
we have established a significant presence in the fastgrowing russian and ukrainian source markets 
leaving us well positioned to take advantage of the potential in these markets  we have an existing 
presence in brazil china and india and are investigating the opportunities in these exciting markets annual report  accounts for the year ended 30 september 2010 tui travel plc
tui travel house
crawley business quarter
fleming way
crawley
west sussex
rh10 9ql
t elephone 0044 01293 645700
wwwtuitravelplccom
tui travel plc  annual report  accounts for the year ended 30 september 2010
we’re on a journey  
focused on delivery
httpara2010tuitravelplccom


Summary:
 wwwtuitravelplccom
during the year we increased progress on the 
delivery of our synergy target of £200m and 
delivered £75m of incremental benefit in the full 
year  this has given us a total delivered benefit  
of £195m since the merger in september 2007  
progress on turning around some of our 
underperforming businesses in mainstream is 
taking longer than originally anticipated but we 
remain confident that the drivers we have in place 
will deliver the targeted outcome  overall growth 
in our specialist sectors remains strong and our 
joint venture in russia and ukraine has performed 
in line with our expectations
results
the group has achieved an 11 increase in 
underlying operating profit of £447m 2009 restated 
£401m on revenue of £13525m 2009 restated 
£13851m  underlying profit before tax is up 4 to 
£337m 2009 restated £324m  underlying earnings 
per share increased 10 to 220p 2009 restated 
200p  the group statutory loss before taxation 
was £36m 2009 restated £94m
dividends
the board is recommending a final dividend  
of 78p per share  on 11 may 2010 the board 
recommended an interim dividend of 32p per 
share thereby resulting in a full year dividend of 
110p per share 2009 107p  the group has a 
progressive dividend policy and will look to maintain 
underlying dividend cover at just over two times
board
post year end on 21 october 2010 the group 
announced that paul bowtell chief financial 
officer will leave the board on 31 december 2010  
08 tui travel plc annual report  accounts 2010
strategic overview
chairman’s statement
we have delivered results in line with our expectations after experiencing another year of challenges  
not least the closure of much of northern europe’s airspace in april when the icelandic volcano 
located below the eyjafjallajoekull glacier erupted and created an enormous ash cloud in the 
atmosphere  this closure cost our group £104m and affected some 400000 of our customers   
at a macro level economic uncertainty and concern about how governments are seeking to tackle 
deficits were also factors that we faced during the year  
on 30 november 2010 the appointment of will 
waggott as chief financial officer of the group 
was announced with immediate effect  will is 
already a tui travel plc board member and was 
the group’s commercial director  
sustainable development
for tui travel sustainability is an important 
business issue and opportunity  our vision for 
sustainable development is to ‘make travel 
experiences special’ whilst minimising our 
environmental impact respecting the culture  
and people in our destinations and offering real 
economic benefit to local communities  as a 
leading tour operator our challenge is to prepare 
for a lowcarbon society by further reducing our 
environmental impacts and as a business we are 
monitoring and preparing for regulatory proposals 
on climate change that could have a fiscal impact 
on our group
colleagues
as a group we have circa 49000 colleagues located 
across the world  their hard work and dedication  
is much appreciated and this year our value of 
‘customer obsessed’ was well and truly 
demonstrated by their actions throughout the 
closure of airspace in april  we received many 
communications from our customers about their 
outstanding efforts and on behalf of the board  
i would like to thank them for their valued 
contribution to making our customers’ holiday 
experiences special
dr michael frenzel
nonexecutive chairman