annu al repo rt  accounts  
fo r the ye ar ended 30 s eptembe r 2014 tt27  ar 2014  13102014  proof 1
•	 gr o w th 	 r oa d ma p 	 ex ceed ed 	 1 1  	 i n cr ease 	 i n 	 u nd erlyi n g 	 o pera ti n g 	 pr ofit 	 a t 	
c o nsta nt 	 cu rr en c y
2
  underlying operating profit increased by 11 to £654m on a constant currency 
basis
2
 underlying operating profit increased to £612m 2013 £589m 
  significant increase in statutory operating profit to £499m 2013 £297m reflecting 
improvement in underlying operating profit lower impairment charges and lower 
separately disclosed items
•	 ma i nstr ea m 	 stra te g y 	 co nti n u es 	 to 	 d el iv er 	 susta i na bl e  	 pr ofita bl e 	 gr o w th 	
  mainstream underlying operating profit up 13 on a constant currency basis
2
 to 
£581m 2013 £514m driven by strong performances in the uk germany and 
netherlands and a halving of french tour operator losses
  underlying operating profit margin increase of 40bp in the uk 69 and 30bp  
in germany 3 on a constant currency basis
2

  nordics suffered from a challenging h1 performance but results have since 
stabilised a change of management in h2 and implementation of our ‘one nordic’ 
structure leaves us well positioned for growth 
  the trading environment in russia and ukraine continues to be challenging due  
to geopolitical issues 
  unique holiday mix now 71 directly distributed holidays are 68 of mainstream 
holidays with online sales at 38
  record customer satisfaction level of 79 maintained across our key markets
  one mainstream model firmly in place delivering a more effective and 
streamlined operation
  our customers continue to experience the benefits of our digital 
transformation strategy
•	 le v era gi n g 	 o u r 	 gl o ba l 	 l ea d ersh i p 	 positi o n 	 i n 	 a cco m m oda ti o n 	 wh o l esa l er
  ttv growth of 15 driven by asia and latin america
  strong underlying operating profit growth of 21 at constant currency
2
 
exceeds roadmap target
•	 d el iv eri n g 	 i n cr eased 	 sha r eh o ld er 	 va l u e
  free cash flow increases 12 to £477m on a constant currency
2
 basis the available 
net cash
5
 position of £371m 2013 £2m provides further balance sheet strength
  our £350m october 2014 convertible bond saw 996 conversion into tui travel 
shares demonstrating investor confidence in the business
  cash conversion rate of 85 2013 93
3
 ahead of 70 target continued strong 
roic performance 146 2013 148
  a second interim dividend of 205p will be payable on completion of the merger  
this includes 105p in lieu of a final dividend 2013 975p
	  p l eased 	 with 	 cu rr ent 	 tra d i n g	
  winter 201415 – 63 of the programme sold with mainstream bookings and 
average selling prices up 1
  strong trading in uk continues across both seasons with bookings up 4 for 
winter 201415 53 sold and 9 for summer 2015 22 sold
operational  financial highlights
re ve nue	
£ 146 1 9m
2 0 1 3 	£ 1 5  0 5 1 m	 3 
u n d e r l y i ng		
o p e r at in g	p ro fi t
£612m
2 0 1 3 	£ 5 8 9 m	 4 
u n d e r l y i n g	p r o fi t		
b e f o r e	t a x
£ 4 7 5m
2 0 1 3 	£ 4 6 1 m	 3 
f r e e	c a s h	fl o w
£4 0 3 m
2 0 1 3 	£ 4 2 7 m	 6 
b a s i c	u n d e r l y i n g		
e a r n i n g s	p e r	s h a r e
291 p
2 0 1 3 	3 0  1 p	 3 
d i v i d e n d	p e r	s h a r e
2 455 p
2 0 1 3 	1 3  5 p	
underlying results
1
statutory results
year ended 30 september
2014
£m
2013
3
£m
change

2014
£m
2013
3
 
£m
revenue 14619 15051 3 14619 15051
operating profit 612 589 4 499 297
profit before tax 475 461 3 362 169
free cash flow
3
403 427 6 403 427
basic earnings per share pence 291 301 3 164 46
dividend per share pence 2455
4
135 2455
4
135
1
 underlying operating profit excludes separately 
disclosed items acquisition related expenses 
impairment of goodwill and financial assets and 
interest and taxation of results of the group’s joint 
ventures and associates
2 
constant currency basis assumes that constant 
foreign exchange translation rates are applied to  
the underlying operating result at prior year rates
3 
comparative figures for the year ended 30 
september 2013 have been restated to reflect the 
adoption of revised ias 19 ‘employee benefits’
4 
dividend of 205p payable on completion of the 
merger this includes 105p in lieu of a final dividend
5 
net cash position defined as cash and cash 
equivalents less loans overdrafts finance leases  
and excludes restricted cash tt27  ar 2014  13102014  proof 1
01
	 	
s t r at e g i c 	 r e p o r t	
 ifc operational  financial highlights
 02 tui travel at a glance
 04 our featured brands
 06 chairman’s statement
 07 chief executive’s statement
 08 why we do it market overview
 10 how we do it our structure 
 12 how we do it our strategic  
  framework and business models 
 14 how we do it our key strategic drivers
 24 how we do it sustainable development
 32 how we do it our people
 38 how we measure it  
  key performance indicators
 42 what are the risks principal risks
 51 health  safety
	 	
b u s i n e s s	a n d	f i n a n c i a l	r e v i e w
 52 group performance 
 55 our growth levers
 57 segmental performance
 61 current trading and outlook
 62 tax
	 	
d i r e c t or s ’ 	 r e p or t
 64 board of directors
 67 corporate governance report
 73 audit committee
 77 nomination committee
 79 remuneration report
 99 other statutory disclosures
 102 directors’ responsibilities
	 	
f in a n c i a l 	 s t ate m e n t s
 104 independent auditors’ report group
 110 consolidated income statement
 111 consolidated statement  
  of comprehensive income 
 112 consolidated balance sheet
 113 consolidated statement of changes  
  in equity
 114 consolidated statement of cash flows
 115 notes to the consolidated  
  financial statements
 179 independent auditors’ report  
  parent company
 180 company balance sheet
 181 notes to the company’s  
  financial statements
	 	
sh a r e h ol d e r 	 i n f or m a t i o n
 186 contacts and advisers
 186 shareholder discount
 186 glossary of key terms
 187 index
who we are
tui travel plc is one of the world’s leading 
international leisure travel groups operating 
in approximately 180 countries worldwide 
it serves more than 30 million customers in over 
31 source markets headquartered in the uk 
the group employs approximately 57000 people 
and operates a paneuropean airline group 
consisting of 136 aircraft the company is 
organised and managed through three principal 
business sectors mainstream specialist  
activity and accommodation  destinations 
in the financial year ended 30 september 2014 
tui travel had revenues of £146bn and an 
underlying operating profit of £612m
see ‘our structure’ on page 10 
tui travel is listed on the london stock 
exchange as a member of the ftse 100 
and ftse4good indices
f o r 	 m o r e 	 i n f o r ma ti o n 	 v isi t 	 w w w  tui tra v e lp l c c om
our vision
making travel  
experiences special…
see ‘our strategic framework and business models’ on page 12 tt27  ar 2014  13102014  proof 1
02 tui travel p l c annu al repo rt  accounts 2014
tui travel at a glance
m a r k e t 	 o v e r v iew
le isu r e 	 tra v e l 	 ma r k et
• 2013 saw international 
arrivals increase by 5 to 
1087 million people 
• our main focus for tour 
operator and destination 
growth is in europe where the 
leisure travel market grew 54 
• our main focus for online 
accommodation growth is in 
asia where we saw the leisure 
travel market grow 62 
• travel and tourism accounts  
for 95 of global gdp and  
1 in 11 jobs worldwide
• market growth is forecast to 
rise 42 per annum from  
2014 – 2024
• continues to be driven by  
high growth in online bookings 
see kpis
•	 w e 	 a r e 	 w e l l 	 p o s i ti o n e d 	 t o	
b e n efit 	 f r o m 	 th e 	 ma r k et ’ s 	
s iz e 	 a n d 	 gr o w th
reasons to invest in tui travel plc
o ur 	 g r o wth 	 le v e rs	
c r e a ti n g 	 sha r e h o l d e r 	 va l u e
• delivering mainstream growth
  unique holidays only available from tui travel
  distributed directly to the customer – growth from online
  leveraging our scale
• organic specialist  activity growth
• leveraging our global leadership position in accommodation wholesaler 
through growth in existing markets 
• investing in accommodation ota 
• focus on free cash flow generation roic and operational efficiency
• pioneering sustainability change in our sector
see more on pages 55 and 56
make travel  
experiences  
special 
t u i	t ra v e l 	 i s 	 a 	 g lo b a l 	 b us i n e ss 	 o p e rati n g 	 a c r o ss	 	
3 1 	 k e y 	 s o ur c e 	 m a r k e ts 	 i n 	 1 80 	 c o un tr i e s 	 w o r l d w i de
wh a t 	w e 	do	
why 	w e 	do	 it 	
the 	 inve s t m ent 	 c as e 	
w he r e 	w e 	op e ra te
see more information on page 08 
s t r a t e g i c	r e p o r t 	group overview
australia
austria
belgium
brazil
canada
china
czech republic
denmark
finland
france
germany
hungary
india
ireland
italy
luxembourg
mexico
the netherlands
new zealand
norway
poland
russia
singapore
slovenia
spain
sweden 
switzerland
thailand 
ukraine
united kingdom
united states
o u r 	 3 1 	 k e y 	 so u r c e 	 ma r k ets 	 a r e  	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
03 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
s tra t eg ic 	 f ram ew or k	 	
b us i n e ss 	 mo de l s	
s trat e g y  	 s usta i n a b il i ty	
a n d 	 p eo p le
o u r 	 s tra t e g y
through our global brand 
portfolio and travel expertise 
we are focused on delivering 
leisure travel experiences 
designed for our customers’ 
ever changing needs
t w o 	 str o n g 	 b usi n ess 	 m o d e ls
addressing the different 
customer demands within the 
market – tour operator and 
online accommodation 
o u r 	 s tra t e gi c 	 d r i v e rs
content brands  distribution 
technology growth  scale 
and people
o u r 	v a l u es
customer driven playing to  
win responsible leadership  
and value driven
s usta i n ab l e 	 dev e l o p m e n t	
taking care in destinations 
reducing carbon emissions and 
engaging our colleagues and 
customers in sustainability
o ur 	 p e o p le
engaging enabling and investing  
in our 57000 people is key to  
the group’s success 
the merger
t h e 	 s h a r e h o l de rs 	 o f	
t u i	t ra v e l 	 p l c	 a n d 	 	
t u i	 a g 	 h a v e 	 a p p r o v e d 	
a n 	 a lls h a r e 	 n i l	
p r e mi um 	 me r ge r	 	
w h i c h 	 w i ll 	 c o m p le t e	 	
o n 	 1 7 	 d e c e m b e r 	 2 0 1 5 	
o ur 	 p r i n c i p a l 	 kp i s
return on invested capital
1 46 	 vs 	 1 4 8  	2014 vs 2013
cash conversion
1
 
85  	 vs 	 9 3  	2014 vs 2013
free cash flow excludes net aircraft predelivery 
payments and movements in restricted cash 2013 
cash conversion restated to reflect the adoption of 
revised ias 19 ‘employee benefits’
unique holidays mix  
as a proportion of total  
mainstream sector holidays
7 1 	 vs 	 68  	2014 v 2013
unique calculation updated to include airtours 
brand and longhaul destinations not previously 
included within packages
direct distribution mix  
as a proportion of total 
mainstream sector holidays
68  	 vs 	 66  	2014 vs 2013
online distribution mix  
as a proportion of total 
mainstream sector holidays
3 8  	 vs 	 3 5  	2014 vs 2013
turnaround and cost  
savings delivered
£ 12m
increase in underlying operating 
profit on a constant currency 
basis for accommodation 
wholesaler business
 2 1 	
carbon efficiency measured 
through tui travel airlines’ 
average carbon emissions per 
revenue passenger kilometre 
co
2
rpk
6 9  9g 	 c o
2
r p k 	 vs 	 	
7 0 7 g	 c o
2
r p k 	2014 vs 2013 	
p r i n c i p a l 	 r i s ks
s tra t e gi c 	 r isks
• consumer preferences  
and desires
• business improvement 
opportunities 
• new markets  
acquisitions  investments 
o p e ra ti o na l 	 r isks
• global financial factors
• talent management
• political volatility natural 
catastrophes and outbreaks 
c om p li a n c e 	 r isk
• regulatory environment
ho w	w e 	do	 it 	 ho w	w e 	m e asur e 	 it 	 wh a t 	ar e 	 the 	r i sks  	
see more information on pages 12 to 37 see more information on page 38 
see more information on page 42  tt27  ar 2014  13102014  proof 1
04 tui travel p l c annu al repo rt  accounts 2014
our german mainstream brand tui is the market 
leader in germany operating the widest variety of 
unique holidays of any tour operator on the german 
market and is a favourite brand for consumers and 
travel agencies alike
for more visit  wwwtuicom
airtours is one of the key players in the german  
luxury travel market offering exclusive individual and 
comprehensive holiday packages for over 40 years
for more visit  wwwairtoursde
operating over 400 yachts in 22 destinations 
the moorings is the world’s leading yacht charter 
company offering allinclusive private luxury crewed 
yachts for sailing or power yacht holidays
for more visit  wwwmooringscom
for over 50 years thomson has been delivering holidays 
to the english and irish market it is committed to 
offering holidays that are designed around specific 
customers’ needs and only exclusively available from 
thomson these unique holiday concepts include 
sensatori thomson couples thomson family resorts 
first choice holiday villages and splashworld resorts
for more visit  wwwthomsoncouk
lateroomscom is a leading consumer facing brand in the 
uk online travel agent sector providing a huge variety  
of hotels to customers this includes chains boutique 
hotels bed and breakfasts and even luxury spas 
for more visit  wwwlateroomscom
quark expeditions is the leading adventure provider for 
polarexpeditions for over 20 years it has been offering 
trips to the most remote regions of the earth for a 
number of markets including north america the united 
kingdom and australia providing specially equipped 
vessels and seasoned expedition leaders
for more visit  wwwquarkexpeditionscom
our featured brands
tui travel operates over 220 brands which are available to view on our website 
	 w w w  t u it r a v el pl c c o m  br a n d expe ri e n c e 	a selection of our featured brands includes
s t r a t e g i c	r e p o r t 	group overview 	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
05 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
fritidsresor is our largest mainstream business in the 
nordic source markets and offers package tours to 
destinations worldwide including the mediterranean  
the canary islands and thailand
for more visit  wwwfritidsresorse
hotelbeds has a market leading position as a global 
accommodation wholesaler supplying over 60000 hotels 
in 180 countries to tour operators airlines and travel 
agents alike
for more visit  wwwhotelbedscom
arke is the leading b2c travel brand in the netherlands 
and the key mainstream brand for the dutch source 
market and has over 100 travel shops across the country 
for more visit  wwwarkenl
offering a range of city trips air and car holidays  
jetair is our largest mainstream brand in belgium
for more visit  wwwjetairbe
intercruises is the world leader in cruise ground handling 
services offering first class ground handling services to 
river cruises and port agencies it served over 11000  
port calls in 2014
for more visit  wwwintercruisescom
crystal is the uk  ireland’s largest ski tour operator  
and has commanding positions in the world’s greatest  
ski areas from selfcatering apartments to fullycatered 
ski chalets crystal takes customers to the best snow 
resorts worldwide
for more visit  wwwcrystalskicouk
180	
t he 	 number 	 of	
c o u n tr i es 	 t h e 	 g ro u p	
o p e r at e s 	 in an oth er 	 r eco r d 	 y ea r 
06 tui travel p l c annu al repo rt  accounts 2014
chairman’s statement
holidays that were distributed directly to our 
customers now make up 68 of mainstream 
holidays up two percentage points on last 
year 2013 66 with online sales at 38 
up three percentage points 2013 35
for more information please see page 52 
d i v ide n ds
following completion of the merger with 
tui ag and as stated in the prospectus 
we understand the directors of the combined 
group intend to adopt a dividend policy in line 
with tui travel’s present progressive dividend 
policy under which dividends grow broadly in 
line with earnings tui travel shareholders 
including tui ag will receive a second interim 
dividend of 205 pence per tui travel share 
to include 105 pence per tui travel share 
in lieu of a final dividend 2013 975p for 
the financial year 201314 at the time of 
our interim results the board proposed an 
increase of 8 to 405p 2013 375p leading 
to a full year dividend of 2455p 2013 135p 
provided the performance of the combined 
group develops in line with expectations 
the combined group will target an increase in 
its dividend per share for the financial years 
201415 and 201516 of 10 in excess of the 
growth in the underlying earnings per share 
growth for the combined group
b o ard
on 7 february 2014 val gooding and vladimir 
yakushev were appointed as independent 
nonexecutive directors vladimir yakushev 
resigned on 24 march 2014 on 16 december 
2013 volker böttcher and tony campbell 
resigned and retired respectively harold sher 
also retired from the board on 18 september 
2014 their knowledge and experience was 
greatly valued and will be missed
for more information on the board  
please see page 64 
s usta i n a b le 	 de v e lo p me n t
our sustainability performance has been 
recognised through many achievements this 
year including joint first place in the ftse 350 
with a ‘perfect 100’ score for climate change 
reporting and transparency carbon disclosure 
project we have made significant progress in 
the final year of our sustainable holidays 
plan – our threeyear sustainability strategy 
which aligns with our corporate strategy and 
strategic drivers our airlines are europe’s 
most carbon efficient in fy14 tui travel 
airlines co
2
 per revenue passenger kilometre 
was 699g – an improvement of 103 over 
the last six years we also exceeded our 
goal to deliver 10 million greener and fairer 
holidays over three years by taking over 
115 million customers to hotels with credible 
sustainability certifications
sustainability is a priority for our business 
and our industry – we have experienced 
a range of business benefits including cost 
efficiencies quality improvements and 
the enhanced engagement of customers 
colleagues and suppliers we aim to continue 
to lead the industry by making real changes 
at scale 
for more information please visit page 24 
c o l le a gues
i am extremely proud of each and every one 
of our 57000 colleagues who have combined 
to deliver another set of record results 
through meeting our colleagues across the 
business it is their unbridled passion and 
drive to deliver the best holiday experience 
for our customers that is a key success factor 
for our group aligned with the vision of 
‘making travel experiences special’ the hard 
work commitment and dedication of our 
colleagues are essential to the future growth 
of the business on behalf of the board 
i would like to thank all of them personally for 
their efforts in producing another fantastic 
recordbreaking year for tui travel plc
f riedrich 	 j oussen 	
nonexecutive chairman
t ui	t ra v el 	 has 	 deliv er ed 	 another 	 r ecord	
y ear  	i	 am 	 pleased 	 to 	 r epor t 	 that 	 w e 	
ha v e 	 once 	 a ga in 	 impr o v ed 	 our 	 underlyin g	
operatin g 	 pr ofit 	 b y 	 4  	 to 	 £ 6 1 2 m 	 or 	 b y 	
1 1  	 o n 	 a 	 c o nsta n t 	 cu r r e n cy 	 basis 	 to 	 £ 6 5 4m	
20 1 3  	 £ 589m  	t he 	 gr oup’ s 	 underlyin g	
basic 	 earnin gs 	 per 	 shar e 	 e ps 	 decr eased	
b y 	 3  	 to 	 2 9  1 p 	 20 1 3 	 r est ated 	 30 1 p 	
this 	 was 	 driv en 	 b y 	 the 	 impa c t 	 of 	 for eign	
ex chan ge 	 translati on 	 and 	 the 	 expec ted	
higher 	 inter est 	 and 	 tax 	 charges 	
our 	 statutor y 	 operatin g 	 pr ofit 	 incr eased 	
to 	 £ 4 99m 	 20 1 3  	 £2 97 m  	 follo win g 	 a	
separately 	 disclosed 	 item 	 cr edit 	 of 	 £ 1 m	
20 1 3  	 debit 	 of 	 £2 4m  	 and 	 no 	 r epeat 	 of	
the 	 £ 1 88m 	 g oodwill 	 impa irment 	 charges	
r elatin g 	 to 	 our 	 specialist 	  	 ac tivit y	
business 	 and 	 f r ench 	 tour 	 operator 	 last	
y ear  	 our 	 statutor y 	e ps 	 has 	 mo v ed	 	
fr om 	 46p 	 in 	 20 1 3 	 to 	 1 64p 	 for 	 20 1 4
the tui travel and tui ag merger that 
was agreed by an overwhelming majority 
of shareholders on 28 october 2014 is 
a fantastic result for both businesses 
the combined group will achieve further 
sustainable growth at a faster rate 
delivering more value to both shareholders 
and customers i am very excited about the 
opportunities we have for the future 
the travel and tourism industry remains 
a growing one international arrivals increased 
by 5 in 2013 to 1087 million and are expected 
to increase by 33 a year to reach 18 billion 
by 2030 we are therefore well positioned as 
market leader in the leisure sector to take full 
advantage of this growth industry
resu l ts
our strong financial performance is driven 
by our strategy we know what our customers 
want and we continue to deliver unique 
holiday experiences sold directly to them 
increasingly online our success is testament 
to the continuing commitment to put the 
customer first in everything we do this year 
we maintained record customer satisfaction 
levels of 79 across our key mainstream 
source markets 
our unique holidays now account for 71 of 
all mainstream holidays up three percentage 
points on the prior year 2013 68 the 
growth in this key strategic area reflects 
the demand our customers have for our 
unique holidays
s t r a t e g i c	r e p o r t 	group overview
unwto’s long term forecast ‘tourism towards 2030’
unique calculation updated to include airtours brand and 
longhaul destinations not previously included within packages  07 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
chief executive’s statement
we have continued to deliver on our five 
strategic drivers across the group unique 
holidays now account for an impressive  
71 of our mainstream sales the business 
benefits of which include higher average 
selling prices higher rates of retention and 
earlier bookings continuing to build on our 
portfolio of unique products the uk business 
opened 10 new thomson couples resorts 
nine thomson scene one additional holiday 
village and another flagship sensatori hotel 
we are targeting a 76 mix of unique content 
by 2017 and we are confident that we will 
achieve this online holiday sales stand at 
38 of mainstream sales this is up from 
21 in 2007 and we are targeting 50 online 
sales for mainstream by 2017 
the tui digital assistant app continues to  
be a huge success it has now been launched 
in five source markets and has been 
downloaded one million times the app  
allows us to be present at every stage of  
the endtoend customer journey we have 
continued to enhance the app over the year 
and are looking forward to implementing 
some key strategic developments to it over 
the coming months a key development has 
been the introduction of the search and book 
functionality allowing users to find and book 
their dream holiday using their mobile device 
we have continued to take delivery of our 
boeing 787 dreamliners with arkefly and 
jetairfly flying their first this year the aircraft 
which have received fantastic customer 
feedback are delivering the targeted 20 
of fuel savings which along with substantial 
financial benefits helps us to achieve our 
sustainability commitment to operate 
europe’s most fuel efficient airlines 
also this year we have built on the foundations 
of one mainstream which allows us to take 
full advantage of our scale and buying power 
and delivers more effective operations across 
the sector one aviation is a great example 
of the success of such collaboration building 
one virtual airline operated from various 
locations delivering significant reductions 
in overheads and sharing best practice
we are well positioned to build on our 
record performance next year as part of a 
new combined group our winter 201415 
programme is currently 63 sold with 
the uk sales to date up 4 yearonyear 
our summer 15 programme has seen an 
impressive start to trading in the uk with 
current bookings up 9 compared to 2014 
it is clear to me that our colleagues are the 
driving force behind our fantastic results 
our people are a key differentiator for 
tui travel they set us apart from our 
competition and i would like to thank them 
for their continued commitment and passion
since the formation of tui travel in 2007  
we have been on a journey of value creation 
for shareholders total shareholder return 
has grown by 138 since that time a strong 
performance against challenging market 
conditions futureproofing our business 
through the merger with tui ag will enable 
our continued sustainable growth going 
forward i am looking forward to completing 
the merger with tui ag expected on  
17 december 2014 and to beginning the next 
chapter of our journey as a new stronger 
combined group in the coming years 
p eter 	 lon g 	
chief executive 
befor e 	 an y thin g 	 else 	i	 w ould 	 lik e 	 to 	 thank 	
our 	 57 0 0 0 	 collea gues 	 a cr oss 	 the 	 gr oup	
whose 	 hard 	 w ork 	 and 	 determinati on 	 is	 	
the 	 r eason 	 for 	 this 	 y ear ’ s 	 success 	
h a v in g 	 d e li v e r e d 	 1 1  	 gr o w th 	 in 	 u n de r l y in g	
operatin g 	 pr ofit 	 on 	 a 	 const ant 	 curr enc y 	
basis 	 w e 	 ha v e 	 outper formed 	 our 	 gr o w th	
r oadmap 	 for 	 the 	 second 	 y ear 	 in 	 a 	 r o w 	
the merger with tui ag will strengthen and 
futureproof the combined group it will also 
enhance the certainty of longterm unique 
holiday growth and reinforce our clear 
competitive advantage through further 
control over the endtoend customer 
experience this will mark the start of an 
exciting new phase of growth delivering 
significant opportunities and value to 
customers employees and shareholders
our mainstream strategy is delivering 
sustainable profitable growth through our 
focus on unique holidays direct distribution 
and optimum leveraging of our scale all 
contributing to the 13 growth in underlying 
operating profit on a constant currency 
basis of the sector this year
accommodation  destination had another 
good year the accommodation wholesaler 
business was the stand out performer with 
underlying operating profit growth of 21  
on a constant currency basis over the year 
we sold 278 million roomnights across the 
sector up 10 on the year before
specialist  activity has seen a more mixed 
performance tougher trading in adventure 
and marine offset by strong results from the 
north american specialist and education 
businesses and weak comparatives in sport 
led to a performance broadly in line with  
last year 
11 
gr o wth 	 in 	 underlyin g	
o peratin g 	 pr ofit 	 o n 	 a 	
co nsta nt 	 curr ency	
ba s i s 2000 2010 2005 2011 2012
677
807
949
995
1035
388
449
486
516 534
128
154
205
218
234
110
133
150
156 163
26
36
58 55 52
24
35
50 49 52
world
europe
americas
asia
middle
east
africa
w orld	 ec on omic 	ou t l ook	  	 change 	 in 	 gdp inte r n a ti o n al 	 ar r iv al s 	  m 
14
2011 2012 2013 2014
62
49
45
51
39
32
29
36
34
17
11
09
02
15
05
12
14
19
2
emerging 
markets
world
advanced 
economies
germany
uk
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08 tui travel p l c annu al repo rt  accounts 2014
s t r a te g i c 	 r e p o r t
why we do it market overview
t h e 	 e c on omi c 	 e n v ir on m e n t
the global economic outlook remained steady in 2014 with gdp 
growth projections of 33 2013 33
1
 the outlook results from 
mixed geographical performances with the uk germany and spain 
strengthening on 2013 offset by weak growth in the united states 
as well as ongoing tensions in russia and the middle east despite 
these downsides the positive trend is expected to continue into 2015 
when global growth is expected to rise to 38
1
 
within the eurozone growth is expected to register at 08 in 2014 
and 13 in 2015 following two years of decline
1
 our two main source 
markets uk and germany registered the biggest growth increase 
amongst advanced economies growing 32 and 14 respectively
1
 
unemployment is slowly decreasing down to 63 in the uk from 
77 and to 5 from 53 in germany
2

t h e 	 l e isu r e 	 tra v e l 	 ma r k et
arrivals increased again by 5 to 1087 million in 2013 following the 
record breaking 2012 where international arrivals surpassed the one 
billion mark for the first time
3
 the regional trends remain broadly in 
line with those of last year europe which is responsible for over 50 of 
global arrivals and our main focus both in terms of tour operator market 
and destination growth and asia our focus for online accommodation 
growth registered the largest increases on last year at 54 and 62 
respectively
3
 the middle east was the only region to suffer a decrease 
albeit only by 02 a vast improvement on the 54 decrease registered 
from 2011 to 2012
3
 europe is the only region to see a yearonyear 
increase in growth rate with all other regions showing slightly slower 
growth than the previous year a stronger euro also helped contribute 
to a healthy increase in tourist receipts in the region of 490bn
3
 
we are operating in an increasingly dynamic environment this year 
saw the proliferation of peertopeer business models a challenging 
environment for airlines – both scheduled and low cost carriers and 
the continued growth of online travel agencies demand for leisure 
travel remains strong and as our main markets recover from economic 
stagnation we are well positioned to maintain our marketleading 
positions and grow further 
the range and quality of our product is well positioned to serve the 
interests of different customer types our dedication to our unique 
holiday strategy in mainstream and to product variety and scope 
in online accommodation coupled with a commitment to digital 
transformation across both models ensures we continue to cater 
to the changing needs of our customer
t he 	 s usta i n a bil i t y 	 ch a l le n g e
travel and tourism is one of the world’s largest industries the growth 
and employment it creates makes it of critical importance to the global 
economy – contributing 9 of global gdp and 6 of global exports
3
 
it is responsible for 1 in 11 jobs globally
3
 and is the main source of foreign 
exchange in onethird of developing countries
4
 travel and tourism also 
accounts for around 5 of global carbon dioxide emissions
4
 half of which 
is attributable to aviation recent un research shows that only 34 
of countries said that their tourism sector was guided by a ‘sustainable 
tourism’ policy
4
 therefore the challenge for our industry is to maximise 
the positive social and economic impacts of tourism while minimising 
environmental impacts 
supporting local livelihoods and protecting the environment is not only 
the right thing to do but brings a significant business benefit as well 
in 2012 we developed our sustainable holidays plan 2012 – 2014 
which sets out four ambitious goals underpinned by 20 commitments 
in our priority areas – taking care in destinations reducing carbon 
emissions and engaging our colleagues and customers in sustainability 
see our sustainable development section on page 24  
and  wwwtuitravelcom for more information
t h e 	 p oli ti ca l 	 clim at e	
as a global organisation we feel the impact of government regulation 
in all of the markets in which we operate some of our activities such 
as those undertaken by our airlines are heavily regulated lawmakers 
continue to focus upon how they can balance consumer protection 
with the need to promote growth and protect jobs
our political and regulatory affairs team seek to engage with legislators 
at an early stage in relation to all of those areas of regulation which 
may have a material impact upon the way we do business our focus is 
always to work with governments to bring forward legislation that is fit 
for purpose properly balances the interests of industry and consumers 
and treats all industry players fairly
the last 12 months have seen continuing developments at the european 
level in respect of two major areas of legislative reform air passenger 
rights and the package travel directive we have engaged consistently 
with the commission the european parliament and with member states 
as they have considered these reforms and will continue to do so over 
the coming 12 months 
aviation taxation also remains on the agenda as governments across the 
world look for ways to increase revenue our role is to remind them of 
the importance of the travel and tourism industry as a driver for growth
in the uk the debate on airport capacity continues following publication 
of a report from the airports commission in december 2013 we will 
maintain a full role in that debate in order to ensure that the specific 
requirements of leisure airlines and passengers are fully understood
1 imf world economic update october 2014     2 eurostat     3 unwto tourism highlights 2014     4 united nations environment programme unep 2014 tour operator online accommodation
our 
footprint
market 
size  
coverage
market 
growth
our 
positioning
key trends 
 future 
outlook
09
	
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our principal mainstream brands operate from the uk 
germany france sweden belgium the netherlands austria 
poland switzerland  canada the global travel expenditure 
combined of these 10 markets amounts to £509bn our four 
largest source markets of the uk  ireland germany france  
 sweden make up over 70 of this spend
in the specialist  activity sector we have over 100 brands  
that deal with a variety of customer segments from luxury 
travel to school sports to languages to adventure this makes  
it very difficult to quantify a defined market size or position 
though the focus is on attaining leading positions in the 
individual markets and maximising growth opportunities
the global hotel market which includes all hotel bookings 
amounts to €378bn this is approximately halved to €181bn 
when considering the bookings made through intermediaries 
rather than direct
of this €181bn approximately 20 of inventory booked 
through intermediaries is sourced through a bedbank 
amounting to a market size of €35bn for our accommodation 
wholesaler business
the accommodation only online travel agent ota segment 
amounts to about £36bn of this the addressable segment 
markets in which we operate uk asia pacific and brazil 
amounts to approximately £82bn
our core markets are projected to grow at a 3 cagr over the 
next three years despite the more challenging environment 
of recent years we have seen consistent market growth and 
healthy projections for the mainstream holiday market
the accommodation only ota market is projected to grow  
at a cagr of 55 over the next five years while the 
accommodation wholesaler market is expected to grow  
at a cagr of 77
we remain market leading in almost all source markets in which 
we operate
in addition we have marketleading positions in a number of 
specialist segments with a portfolio of unique products 
unrivalled product knowledge and superb customer experience
our accommodation wholesaler business hotelbeds  
bedsonline remains the clear leader in the accommodation 
b2b space
with our accommodation ota business we are positioned 
strongly in the uk lateroomscom and are building our 
presence in the asia pacific and latin american market  
through asia rooms and malapronta respectively
customers’ research and booking preferences are constantly 
evolving from offline to online and from desktop to mobile  
and tablet our focus is to ensure we have channels that serve 
all our customers’ needs and that they offer a seamless and 
personalised service
unique holiday experiences continue to be popular and attract 
new customers and with a diverse range of experiences on 
offer tui travel remains well placed
online accommodation only remains one of the fastestgrowing 
segments in the leisure travel industry the proliferation 
of internet use across the world opens up new markets 
and destinations which guarantees steady growth
source euromonitor a c c	 w h o l e s a l e r
o t h e r
f r a nc e
g e r ma n y
n o r d i c s
uk	 	 i re l an d
acc	o t a
i n bo u n d	 s e r v ic e s
s o u rc e 	m a r k e t s bu s i ne s s 	 l i ne s
see more ‘how we do it  
our strategic framework and 
business models’ page 12
s e c t or
see page
 
13
see page
 
13
see page
 
13
mainstream sector 82
accommodation  
destinations sector 12 
specialist  activity 
sector 6 
u n d e r l yin g 	 o p e r a tin g	
p r ofit	 m i x 	 b y	 s ec t or
t u i	 t r a v e l	 p l c	 	
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s t r a te g i c 	 r e p o r t
how we do it our structure
tui travel is organised and 
managed through three  
principal business sectors
a c c om m o d a t i on	 	
	 d e s t i n a t i on s
t h e 	 a c c o m mo d ati o n 	  	 d es tin ati o n s	
se cto r 	  a  d  	 is 	 a 	 gl o ba l 	 pr o vi d e r 	 of	
a c c o m m o da ti o n 	 a n d 	 i n bo u n d 	 tra v el	
se rv i ces 	i t 	 c o m petes 	 i n 	 fast gr o wi n g	
a r eas 	 of 	 th e 	 tra v el 	 i n d ustry 	 th r o u gh	
th r e e 	 b us in ess 	 lin es 	 a c c o m mo d ati o n	
wh o l esa l e r  	 on l i n e 	t ra v el 	 ag e n t	 	
 o t a  	 a n d 	i n bo u n d 	 se rvi ces 	 b oth	
a cco m m od a t i o n 	 w h o l e sa l er 	 a nd	 	
o t a 	 use 	 th e 	 ‘on l i n e 	 a c c o m m o da ti o n ’	
b usi n ess 	 m o d el 	 wh i l e 	i n bo u n d	
se rv i ces 	 is 	 pa rt 	 of 	 th e 	 ‘t o u r 	 ope ra to r’	
b us in e ss 	 mo d e l 	
s p e c i a l i s t 	 	 a c t ivi t y
t he 	 specialist 	  	 ac tivit y 	 sec tor	
sa s 	 comprises 	 mor e 	 than 	 1 0 0	
brands 	 of ferin g 	 a 	 wide 	 ran ge	 	
of 	 unique 	 tra v el 	 experiences 	 to	
customers 	 a cr oss 	 the 	 globe 	 fr om	 	
ski 	 and 	 sailin g 	 holida ys 	 to 	 adv entur e	
tra v el 	 and 	 spor t s 	 tours  	t he	
specialist 	  	 ac tivit y 	 sec tor 	 uses	 	
the 	 ‘ t our 	 operator ’ 	 business 	 model
ma i n s t r e am
t he 	 ma instr eam 	 sec tor 	 mak es 	 up	
the 	 largest 	 par t 	 of 	 our 	 gr oup 	 in	
terms 	 of 	 financial 	 per formance 	
scale 	 scope 	 and 	 number 	 of	
e m p lo y e es  	 t h is 	 se c to r 	 in c o r p o rat es	
our 	 familiar 	 ‘ po w er ’ 	 brands 	 such	 	
as 	 our 	 tour 	 operators 	 with 	 cir ca	
1  80 0 	 r etail 	 stor es 	 a cr oss 	e ur ope	
and 	 six 	 airlines 	 consistin g 	 of 	 1 3 6	
a ir craf t 	 thr ou ghout 	 our 	 k e y 	 sour ce	
mark et s  	 w e 	 r epor t 	 via 	 these 	 sour ce	
mark et s 	 with 	 the 	 largest 	 four	
r epor tin g 	 separately 	 – 	 the 	 uk	 	
 	i r eland 	n ordic s 	 german y 	 and	
f rance 	t he 	 mainstr eam 	 sec tor 	 uses	
the 	 ‘ t our 	 operator ’ 	 business 	 model	 k e y 	 de s t i n a t i on s
cus t o m e r 	 n umb e r s
room ni g h t s
ke y 	 br a n ds
11
	
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canary islands 
balearic islands 
and greece
canary islands 
greece and turkey
balearic islands 
turkey and 
canary islands
morocco tunisia 
and turkey
turkey canary 
islands and spain
usa spain 
and turkey
uk brazil 
singapore 
and malaysia
spain turkey 
and greece
italy france 
and usa
5 2 m
p a ss en g ers
16m
p a ss en g ers
62 m
p a ss en g ers
14m
p a ss en g ers
5 1 m
p a ss en g ers
27 8m
r oom ni g h ts
13m
p a ss en g ers
13 m
c ust o m e r s people
5
we respect our customers and never forget that they 
choose to spend their leisure time with us we share a 
duty to maintain their loyalty and trust we anticipate 
customer desires and everything we do is with them 
in mind we believe there is no such thing as a mass 
market and that it is just a huge market of individuals
our
values
through our global brand portfolio 
and travel expertise we are focused 
on delivering leisure travel 
experiences designed for our 
customers everchanging needs
vision
making travel 
experiences special
we share an infectious entrepreneurial streak and a 
clear focus on the need for profitability we look for 
opportunities that have a commercial advantage for 
us and add value to our customers’ experiences we 
predict translate and bring to market new leisuretime 
products based on their genuine appeal to customers 
value
driven
customer
driven
tour operator online accommodation
strategic 
drivers
page
12
strategic 
drivers 
in action
strategy
page
14
page
16
page
18
page
20
page
22
• unique inclusive holidays
• tailormade holidays
• range and diversity 
 of hotel stock
• global destination and 
 s ource market coverage
content
1
• knowledge  expertise
• driving innovation
• knowledge  expertise
• driving innovation
• marketleading brands
• trusted brands – safety 
  security
• high levels of controlled 
 d istribution 
• well known accommodation
 w holesaler and
  accommodation ota brands
• online
brands  
distribution
2
• flexible technological
 platforms to support 
 growth
• marketleading technology
technology
3
we are passionate about being the best and about 
winning with integrity we seek the ideas and trends 
that change leisuretime markets for the better and 
move quickly to action them we thrive on teamwork 
we are not afraid of making brave decisions we want 
to do something new every day and we love what we do
playing
to win
we are committed to sustainable development and to 
making a positive impact on society we know leadership 
has to be earned and we never take it for granted we 
communicate openly and easily and help each other 
develop and grow we celebrate local differences and 
actively seek to contribute to a better world 
responsible
leadership
• leveraging scale• leveraging scale
growth 
 scale
4
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12 tui travel p l c annu al repo rt  accounts 2014
s t r a te g i c 	 r e p o r t
how we do it our strategic framework and business models
our strategic framework underpins 
everything we do and comprises our 
vision strategy strategic drivers and 
the values that are innate within our 
business culture our strategic drivers 
are ingrained in our operations with  
a clear focus on content brands  
distribution technology growth  
 scale and people our business 
models are derived directly from our 
strategic drivers and focus on the  
two key areas of longterm growth 
within the market – tour operator 
and online accommodation 
for more information please see the  
‘how we do it our key strategic drivers’ 
section page 14 people
5
we respect our customers and never forget that they 
choose to spend their leisure time with us we share a 
duty to maintain their loyalty and trust we anticipate 
customer desires and everything we do is with them 
in mind we believe there is no such thing as a mass 
market and that it is just a huge market of individuals
our
values
through our global brand portfolio 
and travel expertise we are focused 
on delivering leisure travel 
experiences designed for our 
customers everchanging needs
vision
making travel 
experiences special
we share an infectious entrepreneurial streak and a 
clear focus on the need for profitability we look for 
opportunities that have a commercial advantage for 
us and add value to our customers’ experiences we 
predict translate and bring to market new leisuretime 
products based on their genuine appeal to customers 
value
driven
customer
driven
tour operator online accommodation
strategic 
drivers
page
12
strategic 
drivers 
in action
strategy
page
14
page
16
page
18
page
20
page
22
• unique inclusive holidays
• tailormade holidays
• range and diversity 
 of hotel stock
• global destination and 
 s ource market coverage
content
1
• knowledge  expertise
• driving innovation
• knowledge  expertise
• driving innovation
• marketleading brands
• trusted brands – safety 
  security
• high levels of controlled 
 d istribution 
• well known accommodation
 w holesaler and
  accommodation ota brands
• online
brands  
distribution
2
• flexible technological
 platforms to support 
 growth
• marketleading technology
technology
3
we are passionate about being the best and about 
winning with integrity we seek the ideas and trends 
that change leisuretime markets for the better and 
move quickly to action them we thrive on teamwork 
we are not afraid of making brave decisions we want 
to do something new every day and we love what we do
playing
to win
we are committed to sustainable development and to 
making a positive impact on society we know leadership 
has to be earned and we never take it for granted we 
communicate openly and easily and help each other 
develop and grow we celebrate local differences and 
actively seek to contribute to a better world 
responsible
leadership
• leveraging scale• leveraging scale
growth 
 scale
4
13
	
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s t r a te g i c 	 r e p o r t
1 	 c ont ent
see adjacent
2 	 br a nd s	 	 d i s t r i bu t i o n
see page 16
3 	 t ec h nol o g y
see page 18
4 	 g r o w t h	 	 s c a l e
see page 20
5 	 p eo p le
see page 22
how we do it  
our key strategic drivers
the next few pages will provide further detail on what our 
strategic drivers mean to our tour operator and online 
accommodation businesses this will focus on why they 
are important how we adhere to them operationally and 
how we know they are working whilst the focus of some of 
our strategic drivers will be considerably different others 
demonstrate clear similarities highlighting the underlying  
unity between the two models
c o nte nt 	 c a se 	s t ud y	
differentiating 
through 
dreamliners
this year our boeing 787 dreamliner 
fleet has continued to grow with both 
jetairfly and arkefly receiving their 
first aircraft the dreamliner is a key 
differentiator for tui travel further 
enabling us to provide an outstanding 
experience throughout the customer 
journey not only in resort they have 
received consistently high scores in 
customer satisfaction questionnaires
1  	 c on t e n t
u n iqu e	 	
holi d a y 	 m i x	 	
n ow	
7 1 15
	
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o u r 	 ra n g e 	 a n d 	 d i v e rs i ty	 	
is 	 a ttracti v e 	 t o 	 o u r 	 cust o m e rs
wh y 	 is 	 it 	 impor tant 
• the increase in airline capacity and continued success of 
lowcost carriers has created a large market of customers 
looking for a range of accommodation options all over 
the world
• to capture this market it is imperative that digital content 
is clear relevant and well presented 
• getting this right will ensure customer loyalty and 
repeat customers
what 	 ar e 	 w e 	 doin g 	 about 	 it 
• selling a wide variety of product in terms of high quality 
destination and budget in fy14 we added a further seven 
destinations to our accommodation wholesaler portfolio 
and increased our hotel count to nearly 70000 
• in fy14 the accommodation wholesaler business diversified 
its offering to also sell transfers and activities with nearly 
20000 transfers and activities contracted for fy14 it is 
building a solid position in a profitable market place 
• over the past year accommodation wholesaler ttv has 
grown significantly in the key regions of asia and africa 
which has contributed to an impressive divisional ttv 
growth rate of 15 yearonyear
• fy14 saw a 37 increase in hotel inventory on malapronta 
driven by domestic content
u n i q u e 	 h o l i da ys 	 f o r m 	 th e 	 b ack b o n e	 	
o f 	 o u r 	t o u r 	 o p e ra t o r 	 stra t e g y
wh y 	 is 	 it 	 impor tant 
• by pursuing a unique content strategy we are able to cater 
to the needs of clearly defined customer segments thereby 
appealing to a wide range of our addressable market
• the investment in designing and delivering our different 
hotel concepts attracts satisfied and repeat customers 
validated by higher satisfaction and retention scores 
across source markets
• the inclusion of value added services and features 
such as private transfers and swimup rooms commands 
a higher margin
• our unique content books earlier than commodity  
products enabling us to manage our capacity and yield 
more effectively
• by offering content which is exclusive to us we can 
distance ourselves from the competition and limit 
comparisons on meta search engines eg kayak or trivago
what 	 ar e 	 w e 	 do in g 	 about 	 it 
• in mainstream we are continuously reviewing our existing 
concept portfolio adapting where appropriate for different 
source markets and opening new destinations
• in fy14 we opened sensatori jamaica the sixth property  
in the collection with a further three in ibiza turkey  
and cyprus on sale for summer 15 sensatori has seen 
yearonyear pax growth of 40 since it was launched  
in fy09 
• unique content has grown from 68 in fy13 to 71  
in fy14
• our specialist  activity brand citalia launched ‘citalia 
secrets’ offering predeparture knowledgeable advice and 
hidden secrets on customer chosen destinations in italy sensatori resort aphrodite hills cyprus 
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s t r a t e g i c	r e p o r t 	how we do it our key strategic drivers
2 	 br a nd s 	  	 d i s t r i bu t i o n
b r an d s	  	 d i st r i b uti o n 	 c a s e 	s t u d y	
successful sensatori
thomson’s sensatori brand champions affordable luxury 
and is designed to fuel the senses with world class spas 
and gourmet dining as a result of its huge popularity it  
is set to grow by 50 over the next year opening three 
new resorts sensatori ibiza sensatori resort aphrodite 
hills cyprus and sensatori resort fethiye turkey 17
	
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d istr i b u ti o n 	 is 	 k e y 	 t o 	 th e	
su c c essfu l 	 p e r f o r ma n c e 	 o f 	 th e	
o n lin e 	 a c c om m o dati on 	 b us in ess
wh y 	 is 	 it 	 impor tant 
• unlike our tour operator business we do not have input 
into the physical content but instead create value with  
our digital content branding and distribution
• in our accommodation wholesaler business we have a  
long established reputation to maintain so that we can 
grow both with existing customers and in new geographies 
our customers expect an easytouse interface breadth  
of content and reliable service delivery of this is a critical 
success factor
• our accommodation ota brands operate in a far more 
crowded market place where having a trusted and 
recognisable brand is vital in driving online traffic 
therefore working on our brand to increase awareness  
is the most efficient way to attract new customers
what 	 ar e 	 w e 	 doin g 	 about 	 it 
• fy14 saw particular focus on the growth of our agency 
distribution arm bedsonline efforts in europe and the 
americas in particular saw agent numbers increase by 
nearly 30
• our accommodation wholesaler business partnered with 
easyjet holidays in mid2014 becoming the operator’s 
accommodation provider this partnership allows 
distribution of our content to a far wider customer base
• in our accommodation ota business we remain focused on 
building on our strong brand positioning of lateroomscom 
in the uk and expanding in the emerging markets 
through asiaroomscom and malaprontacom this year 
lateroomscom brand messaging reached over one million 
users across all social media platforms including google 
instagram facebook tumblr pinterest and twitter
w e 	 r e ma i n 	 c o m m i tt e d 	 t o 	 o u r 	 f o cus	
o n 	 d i r e ct 	 d istr i b u ti o n 	 a n d 	 b e i n g	 	
on lin e 	 dr i v e n	
wh y 	 is 	 it 	 impor tant 
• the benefits from a direct distribution strategy are 
twofold it enables us to form a direct relationship with the 
customer and thereby understand more about what they 
are looking for and also drives down our distribution costs
• customers increasingly expect a standardised service 
and offering across different devices and therefore 
we need to ensure we are ahead of the curve with our 
digital developments
• in a densely populated industry the robustness of our 
brand names and the financial security and quality they 
promise are very important 
• recognisable brands are particularly important in 
an online world helping to direct organic traffic and 
improving conversion
what 	 ar e 	 w e 	 do in g 	 about 	 it 
• in our capacity as an endtoend operator we consider 
‘online’ as the whole journey from inspiration to booking 
to the holiday itself as well as returning and sharing 
experiences through social media 
• we recognise the changing role of the travel agency which 
remains an important part of the booking process for  
many of our customers our new concept stores which 
incorporate digital elements and inspiration have seen 
increased traffic and improved customer interaction  
and this year our thomson stores beat cross industry 
competition to win the digital store of the year award
• these efforts have seen our direct share of bookings 
increase from 66 in fy13 to 68 in fy14
• thomson sport the sportsfan focused arm of specialist  
 activity recently signed a partnership with manchester 
city to be the club’s official supplier of supporter travel 
and another brand gullivers signed a similar sixyear deal 
with the welsh rugby union
m a in s t r e a m	
dir e ct	
di s t r i b u t i on	
n ow	
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s t r a t e g i c	r e p o r t 	how we do it our key strategic drivers
3  	 t e c h nol o g y
t ech n o l o g y 	 c a s e 	s t u d y	
tui digital assistant now live in five 
this year has seen the international rollout of the tui digital assistant tda 
capitalising on the scale of our business the app which was first developed for 
the uk as ‘my thomson’ has been translated for five of our key source markets 
with a total of over one million downloads to date – 120000 in the month  
of july 2014 alone – the digital assistant is a ‘one stop shop’ for everything 
customers need available for android and ios devices it includes everything 
from inspiration research booking flight information and luggage allowance 
details to maps to help customers plan the best route to the airports 
the tda has a number of exciting new innovations planned in 2015  19
	
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t e chn o lo g y 	 un de r pi ns 	 the 	 d i str ib u ti o n	
a n d 	 c o n t e n t 	 p i l la rs 	 o f 	 o u r 	 stra t e g y
wh y 	 is 	 it 	 impor tant 
• the complexity of our product multiple components 
and distribution pattern eg a sixmonth lag between 
purchase and consumption requires us to have robust 
and interlinking systems to ensure a seamless customer 
service and reliable management information
• innovation in technology means we can develop new ways 
to inspire our customers and make their booking process  
as userfriendly as possible
• enables us to offer our customers the best possible value 
by having an efficient technology infrastructure and 
therefore driving maximum savings and efficiencies
what 	 ar e 	 w e 	 do in g 	 about 	 it 
• this year thomson launched a system called connect 
linking the digital retail and call centre businesses connect 
allows customer information to be shared across booking 
platforms meaning online or callcentre bookings can be 
followed up in shops the system will make customer data 
available from the point of booking onwards allowing 
frontline staff to offer a more personalised service
• in fy14 we launched holiday open day an online tool 
which allows the customer to virtually explore and  
select different options which our concepts offer and 
consequently suggest the most suitable product for  
their next holiday
• we rolled out the tda in other markets from sweden to 
austria whilst simultaneously updating its functionality 
the app had been downloaded one million times with more 
updates in the pipeline
• our specialist business also launched a range of successful 
apps most notably crystal ski explorer complemented  
by live facebook live chat and mobile optimised sites to 
support their multichannel distribution strategy
i n v estm e n t 	 i n 	t e ch n o l o g y 	 is	
esse n ti a l 	 f o r 	 o u r 	 o n l i n eb ase d	
a c c om m o dati on 	 b us in ess es	
wh y 	 is 	 it 	 impor tant 
• similarly to our tour operator business the main areas 
where technology can benefit our business are through 
enhanced user experience at the front end and the 
rationalisation of systems and platforms at the back end
• as our otas interact directly with the customer user 
experience is of utmost importance as customers have 
come to expect an intuitive and fast interface that delivers 
relevant results
• having efficient technology platforms allows us to 
drive cost savings and therefore provides further value 
to our customers
what 	 ar e 	 w e 	 doin g 	 about 	 it 
• accommodation wholesaler’s inhouse platform is one  
of the most robust and flexible in the industry allowing  
for quick connectivity with hotel suppliers as well as our 
customer base of travel agencies tour operators and otas
• fy14 saw the launch of the dedicated xml link for the 
transfer and activity bank which we expect to gain further 
traction next year
• in our accommodation ota business we are continuing to 
invest in a new platform to support our growth strategy 
the brazilian ota malapronta started offering payments  
by instalments in fy14 – an option which is very popular in 
that market accounting for over 42 of online purchases
• following the success last year of the laterooms app apps 
were launched for asiarooms and malapronta in early fy14 
and have generated over 600k downloads to date across 
the three brands 
1 	 mill i o n
t da	 	
do w n lo a d s tt27  ar 2014  13102014  proof 1
20 tui travel p l c annu al repo rt  accounts 2014
s t r a t e g i c	r e p o r t 	how we do it our key strategic drivers
4	 growth	 	 scale
gr o w t h 	  	s c al e 	 c a s e 	s t u d y	
scale leads to success 
in december 2013 tui travel announced its ‘one mainstream’ strategy 
the purpose of one mainstream is to generate further growth innovation 
and  cost efficiencies for the group leveraging our scale we have been able 
to develop new functional groups such as mainstream product  purchasing 
and distribution  online one mainstream has also involved building business 
clusters from existing source markets for example tui benelux – formed of 
tui belgium netherlands and luxembourg where operational efficiencies have 
been implemented through joint aviation operations to mombasa and zanzibar 
for summer 14 and florida for winter 14 
our five charter airlines are also changing – one aviation another part of 
one mainstream is building a virtual airline this means that we will act ‘as one’ 
wherever it makes sense to do so maintaining local differences where the benefit 
of that differentiation is greater than that of harmonisation – one team does 
not mean one location 21
	
s t r at e g i c 	 r e p o r t
 
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directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  13102014  proof 1
tui travel p l c annu al re po rt  accoun ts 2014
o u r 	 sca l e 	 a n d 	 p o t e n ti a l 	 f o r	
gr o w th 	 ma k e 	 us 	 u n i q u e
wh y 	 is 	 this 	 impor t ant 
• we are the largest integrated leisure travel company in the 
world in terms of both scope of operation geography and 
customers we are market leaders in most of the markets 
in which we operate and we constantly strive to maintain 
our leading positions
• enables us to drive economies of scale further synergies 
and cost efficiencies and therefore provides added value  
to customers
what 	 ar e 	 w e 	 do in g 	 about 	 it 
• we further deployed the dreamliner aircraft across our 
mainstream business giving our customers a superior  
flight experience and allowing us to offer new longhaul 
destinations and more capacity to existing ones our 
benelux airlines arkefly and jetairfly were the latest to 
offer flights on the dreamliner in august
• the mainstream functions are working closer together  
with central structures in place for distribution aviation 
product and purchasing and digital this allows the 
different markets to collaborate on initiatives and learn 
best practice from each other
• our specialist  activity brand tcs expeditions the  
world leader in private jet travel added a new firstclass 
dedicated boeing 757 customconfigured cabin with  
52 flatbed seats to its fleet the plane was designed  
in collaboration with four seasons hotels  resorts  
as part of the ongoing strategic partnership
• for the second consecutive year in fy14 we delivered on 
our growth roadmap of 710 ebita growth at constant 
currency as set out at the beginning of the year 
sca l e 	 is 	 a 	 cr i ti ca l 	 su c c ess 	 fact o r 	 f o r	
a ny 	 o n l i n e 	 ac c o m m o da ti o n 	 b us i n ess
wh y 	 is 	 it 	 impor tant 
• online driven businesses need to compete with global 
players and compete for customers in all markets to take 
market share
• in a pricedriven lowermargin business it is imperative  
for us to achieve high volumes which can be leveraged  
to gain competitive advantage
what 	 ar e 	 w e 	 doin g 	 about 	 it 
• hotelbeds and bedsonline are clear market leaders in the 
b2b space with operations in over 100 countries we are 
continuing to follow our strategy of consolidating our 
marketleading position by expanding in destination and 
source markets 
• within the accommodation ota division we cover three 
attractive markets
 lateroomscom has maintained its position as  
number two against fierce competition in the uk 
accommodationonly ota market our focus is on 
profitable growth through product quality and  
multichannel optimisation
 asiaroomscom is now an established and growing  
brand in the asiapacific region focused on seven key 
apac countries and intraasia corridors
 malaprontacom continues to establish itself in  
south america a fastgrowing and lucrative market
• accommodation ota can benefit from access 
to the merchant stock available through 
accommodation wholesaler
• accommodation wholesaler saw a further 26 growth  
in the number of xml links between their inventory  
and tour operatorstravel agencies’ booking systems 
o ne	
m a i nst r e a m	
n o w 	 in	
p l ac e	 tt27  ar 2014  13102014  proof 1
22 tui travel p l c annu al repo rt  accounts 2014
5  	 p eo p le
p eo p l e 	 c a s e 	s t u d y
communicating the vision 
this year we set out to unite the group’s 57000 colleagues worldwide  
the video which was produced brings to life the human resources vision in a 
consistent effortless and engaging manner for colleagues and ensures that  
all fully understand the employer brand the video explains how our vision  
of ‘making travel experiences special’ is achieved through shared values
s t r a t e g i c	r e p o r t 	how we do it our key strategic drivers 23
	
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tt27  ar 2014  13102014  proof 1
tui travel p l c annu al re po rt  accoun ts 2014
p e o p l e 	 a r e 	 a 	 k e y 	 d i f f e r e n ti a t o r	 	
a t 	t u i	t ra v e l
wh y 	 is 	 it 	 impor tant 
• as a customerfacing servicedriven company our people 
are a key element of our success from reps in resort cabin 
crew agents to colleagues in head office – the knowledge 
and customer focus of our employees is what helps us 
maintain our marketleading positions
• satisfaction and loyalty of our customers are important 
ingredients to help us grow a key driver for this is their 
holiday experience and the service they receive from the 
time they book to the interaction in resort 
• given the nature of what we do we need to attract and 
retain colleagues with specific skills across the tour 
operator discipline
what 	 ar e 	 w e 	 do in g 	 about 	 it 
• communicating with colleagues regularly and openly 
whether it be informal blog posts from the board or 
organised ‘town hall’ meetings to give updates on the 
strategy and fiveyear plan of the business
• enhancing our existing development programmes for senior 
managers and executives and adding a new programme for 
junior managers this year the specialist  activity sector 
added a fourth programme navigator designed for those 
at the beginning of their management careers to help them 
build networks understand the breadth of the organisation 
and learn about key industry trends
• our international graduate leadership programme and 
tui uk graduate scheme continue to attract highquality 
talent from across the world and are considered among  
the best in the industry
• within specialist holidays group part of our specialist  
 activity sector a ‘spreading smiles’ programme was 
launched across all brands showcasing how the sector 
works together to generate opportunities for collaboration 
and teamwork
• four senior female leaders within the business were 
recognised as some of the most influential women in travel 
at the british travel industry hall of fame
p e o p l e 	 a r e 	 th e 	 k e y 	 d r i v e r 	 o f 	 a ny	
o n l i n e 	 b us i n ess 	 w h e r e 	 a gi l i ty  	 s p e e d	
a n d 	 i n n o va ti o n 	 a r e 	 ess e n ti a l 	 e l e m e n ts	 	
o f 	 s u c c ess
wh y 	 is 	 it 	 impor tant 	
• the online accommodation business is driven by the talent 
it employs with thousands of people across a variety of 
locations and functions
• digitally skilled and innovative talent are necessary for the 
online accommodation industry making it a competitive 
sector as an employer
what 	 ar e 	 w e 	 doin g 	 about 	 it 
• building a strong brand proposition to attract and retain 
the best talent
• identifying knowledge gaps within the organisation and 
providing colleagues with the necessary tools and skills  
to succeed in the online world
• developing an onlinedriven culture where employees 
are encouraged to keep abreast of the latest trends 
whilst providing an environment which fosters new ideas 
and innovation
• the global and evolving nature of our business requires  
we look beyond european boundaries when it comes to 
sourcing talent tui travel continues to tap into the vast 
talent pool of markets like brazil and south east asia to 
fuel its global growth ambitions
• launch of a programme comprising personal reviews 
organisational management and succession planning with 
the view to ensuring we develop our internal talent with 
clear career paths and targeted development programmes
5 7  000
c o lle a g ue s	
a c r o s s 	 t h e	
g r o u p 24 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
how we do it sustainable development
s t r a te g i c 	 r e p o r t
we want our holidays to benefit local people and to protect 
the environment it is important to us not just because it is 
the right thing to do but because our products – memorable 
and unique holidays – rely on beautiful and welcoming 
tourist destinations managing our impact means we can 
maintain the quality viability and desirability of our holidays 
for years to come our vision is to make travel experiences 
special whilst minimising environmental impact respecting 
culture and people and bringing economic benefits 
to communities 
our commitment to responsible leadership see our values on page 
25 extends beyond our group in fy14 we were pleased that our 
performance was recognised as follows
• for the seventh consecutive year tui travel was featured in the 
climate disclosure leadership index cdli and was ranked joint 
first in the ftse 350 for our approach to carbon disclosure and 
governance tui travel was the only company in the travel and 
leisure sector to feature in the 2014 cdli  wwwcdprojectnet
• tui travel was recognised by carbon clear for its approach to 
carbon reporting ranking the company 4th in the ftse 100 in  
its annual survey  wwwcarbonclearcomuk 
• we continue to be listed on the ftse4good index in recognition  
of meeting strict social environmental and governance standards 
• we were a finalist in the business category of the world travel  
 tourism council’s 2014 tourism for tomorrow awards 
for further details on awards and our latest sustainable holidays 
report see  wwwtuitravelplccomsustainability
go v e r na n c e
commitment at the most senior level is vital for us to achieve our 
goal of leading the leisure travel sector in sustainable development 
johan lundgren deputy chief executive is responsible for reporting on 
sustainable development to the tui travel board and jacky simmonds 
group hr director is responsible for reporting on sustainable 
development to the group management board jane ashton is the 
director of group sustainable development the group management 
board acts as the steering committee setting the strategic direction 
and longterm objectives for sustainable development across tui travel
the group sustainable development department’s role is to drive 
change towards a more sustainable business and continue to lead 
the industry the department works closely with other group 
departments and a network of sustainable development coordinators 
in each key source marketsector who have a remit to develop and 
implement sustainable development strategy supported by a network 
of champions 
we work with forum for the future a global sustainable development 
ngo which selects a handful of companies as ‘pioneer’ partners 
defined as leading organisations at the cutting edge of sustainability 
tui travel has been selected as one of these partners
r isk 	 ma na g e m e n t
policy and mitigation for groupwide risks relating to sustainability  
are facilitated by the group risk management and sustainable 
development departments with responsibility for managing such  
risks also shared by the businesses themselves increasing legislative 
and societal demands on a company like ours requires that we act 
responsibly and identify and manage our risks effectively 
key areas of risk identified are
• legislative and societal demands in relation to size and management 
of tui travel’s carbon footprint
• ensuring that the actions of our colleagues uphold tui travel’s 
sustainable development policy
• ensuring that the actions of our suppliers uphold tui travel’s 
environmental and social supplier standards
• putting measures in place to enable us to gain a better 
understanding of the socioeconomic impacts of tourism
• ensuring we are aware of potential damage to and the quality of 
destinations due to ecosystem degradation and climate change
• being aware of customer expectation in respect of sustainability
for further information about sustainability risks and how we manage 
them see our latest sustainable holidays report we have also identified 
sustainability risks within the principal risks section see page 42
f y 1 4 	 h i g h l i g h ts …
5 5 m
customers stayed in hotels with 
sustainability certifications
69 9g	
of co
2
 emissions per revenue 
passenger kilometre across 
tui travel airlines – making 
our airlines the most fuel 
efficient in europe
v iew p o in t
watch johan lundgren 
discussing the importance  
of sustainability to the 
tourism industry 
 wwwtuitravelplccom  c ol l e ag u es 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 cu s t om er s c ar b o n 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	d es t i n at i o ns we will operate europe’s most
we will deliver 10 million
fueleffi cient airlines and save more
in sustainability
delivering more sustainable holidays
‘greener and fairer’ holidays
than 20000 tonnes of carbon 
tui travel as a leader
tui travel as a leader in
from our ground operations
our colleagues will rate 
customers will regard 
t e ch n ol og y 	 	 	 	 	 	 	 	 	 	 	 	 	 	g r o wt h 	  	s c al e 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 c o nt e nt s t r at eg i c 	dr i v er s o nl i n e 	dr i v e n 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 c os t 	 eff i c i e n c y
p e op l e 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	br a nds 	  	d is t r ibu t i o n
v i s i o n
m a k in g 	 t r a ve l	
e xp e r i e n c e s 	 s p e c i al 	
w h i lst 	 min imis in g	
e n v i r o n m e n ta l 	 i m pact 	
r esp e cti n g 	 cu l tu r e	 	
a n d 	 p e o p l e 	 a n d 	 b r i n gi n g	
e c o n o m i c 	 b e n efits 	 t o 	
c o mmun i ti es
25 tui travel p l c annu al repo rt  accounts 2014
	
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directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  13102014  proof 1
our threeyear sustainable holidays plan was launched in 2012 and marks our journey towards 
a more sustainable future it shows significant integration of environmental and social principles 
in the way we do business – including performance measures processes and the customer 
proposition it sets out four ambitious goals underpinned by 20 commitments in our priority 
areas – taking care in destinations reducing carbon emissions and engaging with colleagues and 
customers in sustainability our sustainable holidays plan aligns with our corporate strategy 
for further details on our  
sustainable holidays plan including  
our 20 commitments see  
 wwwtuitravelplccomsustainability
our sustainable holidays report 2014  
is due out in spring 2015
our sustainable holidays plan 201214 26 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
g o a l	b y 	 2 0 1 5 … 	
w e 	 w i l l 	 d e l i v e r 	 1 0 	 m i l l i o n	
‘ gr e e n e r 	 a n d 	 fa i r e r’ 	 h o l i da ys	
we will measure this by the number of 
customers we take to hotels with credible 
sustainability certifications from 2012 
to 2014 eg sustainability certifications 
by working with the global sustainable 
tourism council such as travelife and 
international environmental management 
standards such as iso 14001 and emas 
we are proud of the positive role our industry plays around 
the world the travel and tourism sector accounts for 9 
of the world’s gdp and 6 of its exports unwto 2014 
it is responsible for one in 11 jobs globally unwto 2014 
and is the main source of foreign exchange in onethird of 
developing countries unep  2014 
however we know that travel and tourism can also have unintended 
negative consequences and are committed to understanding and 
enhancing the socioeconomic impacts of our holidays there are 
also significant environmental challenges for example water will be 
a key challenge for our industry in the coming decades particularly 
in island states our challenge is to maximise the positive social and 
economic impacts of tourism in all our destinations and to minimise 
environmental impacts
we are committed to influencing more hotels to achieve credible 
sustainability certifications which provides us with assurance that 
our suppliers are making continual sustainability improvements this 
not only improves our sustainability performance but also benefits 
our suppliers
our most sustainablymanaged hotels deliver higher quality and 
customer satisfaction analysis of over 14 million customer satisfaction 
questionnaires within tui uk  ireland in 2012 and 2013 showed that 
hotels with travelife sustainability awards scored higher on overall 
satisfaction from this we can conclude that our customers experience 
a link between sustainability and quality 
good sustainability management – and good environmental management 
in particular – can have a significant effect on a hotel’s operating costs 
for example depending on the region energy costs can account for 
between 5 and 15 of a hotel’s operating costs bluecontec 2012 
so encouraging hotel suppliers to use energy more efficiently and also 
to use renewable energy wherever feasible helps them save on one 
of their biggest costs as well as helping destinations prepare for a low 
carbon future 
in many destinations tui travel accounts for a significant percentage 
of tourist arrivals that means we contribute directly or indirectly 
to many of the jobs tourismrelated businesses and tax revenues in 
destination countries
we are conscious of the pressures that tourism can place on local 
populations and resources and therefore work collaboratively with 
communities governments and a range of other partners to support 
sustainable management of destinations examples include the global 
sustainable tourism council the dutch association of travel agents  
 tour operators deutscher reiseverband giz association of british 
travel agents and the travel foundation
f y 1 4 	 h igh l igh t s
• we took over 55 million customers to hotels with credible 
sustainability certifications
• we featured over 5900 hotels with sustainability certifications
• we organised sustainability supplier workshops in germany greece 
italy morocco spain tunisia and turkey 
• we launched the tui collection – a set of excursions tailored to give 
customers a true taste of the destination excursions have to meet 
specific sustainability criteria to be included in the collection 
• aitken spence travels in sri lanka part of our accommodation  
destinations sector won a gold award for its ecotourism initiative 
at the 2014 pacific asia travel association pata awards
• tui uk was the first travel company in the uk to be certified to the 
travelife standard for tour operators and sawadee also achieved 
certification in 2014 following on from tui nederland which was  
the first major travel company worldwide to be certified in 2013 
• tui nordic was the first tour operator in the nordic region to 
achieve iso 14001 certification and tui deutschland successfully 
renewed its iso 14001 which it has held since 2003
d e s tin a ti on s	
11 5m
over 115 million customers 
stayed in hotels with 
sustainability certifications
over the last three years
5  9 00	
this year we featured over  
5900 hotels which had 
sustainability certifications
s t r a t e g i c	r e p o r t 	how we do it
for further details visit our latest sustainable development report  wwwtuitravelplccomsustainability
sustainable development 27 tui travel p l c annu al repo rt  accounts 2014
	
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directors’ report
 
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tt27  ar 2014  13102014  proof 1
• our majority shareholder tui ag signed up to the un global 
compact in september 2014 committing the group to 10 universally 
accepted principles in the areas of human rights labour environment 
and anticorruption
• our employee code of conduct commits us to respecting and 
observing human rights
• our supplier code of conduct sets out the minimum standards we 
expect from suppliers and their employees contractors agents and 
subsidiaries when working on our behalf the code covers human 
rights and labour laws support for local communities environmental 
impacts as well as bribery and corruption 
• our internal policies practices and guidelines also cover anti
discrimination grievance and whistleblowing procedures see 
page 71 health  safety see page 51 sustainability antibribery  
corruption fraud see page 71 conflicts of interest data protection 
and security various sanctions and third party due diligence
• tui travel joined transparency international uk’s business integrity 
forum in 2014
• we have been named a top member of the code of conduct for the 
protection of children from sexual exploitation in travel  tourism 
in 2014 and our businesses support child protection projects 
and campaigns
• the majority of our businesses have incorporated environmental and 
social minimum standards into contracts for accommodation suppliers
• our goal is to deliver 10 million ‘greener and fairer’ holidays and to 
encourage our hotel suppliers to implement credible sustainability 
certifications travelife is the system of choice for the majority of 
our businesses and we helped them to develop new stricter criteria 
including human rights incorporating the principles of the ethical 
trading base code which were launched in 2014
we continue to work with stakeholders to understand and respond  
to human rights issues better 
to read our policies visit  wwwtuitravelplccom
• sportsworld achieved iso 20121 for sustainable event management
• tui nederland won the ‘overall winner’ award and the ‘best for child 
protection’ award at the 2013 world responsible tourism awards
we are involved in hundreds of projects that support communities 
and reduce environmental impacts where we can we focus on those 
destinations where we send the most customers and where we believe 
we can make the greatest difference in fy14 this included brazil 
cape verde jamaica spain thailand tunisia and turkey
m e asu r i n g 	 t o u r ism ’ s 	 i m pact	
we are trialling a big picture approach to measuring and understanding 
the impact of tourism in partnership with the travel foundation and 
using a methodology developed by pwc we aim to value the various 
economic fiscal social and environmental impacts of tourism in cyprus
pwc’s ‘total impact measurement  management’ timm framework 
will be applied to our mainstream sector tourism operations focusing 
on a selection of hotels in cyprus this is the first time the methodology 
has been applied to tourism cyprus was chosen for this project as it is 
a mainstream destination and an important destination for tui travel 
the pilot is expected to provide new insights into the impacts both 
positive and negative of mainstream tourism on a holiday destination 
and to highlight the practical implications of undertaking holistic impact 
measurement more widely in the industry andor in other destinations
all the impacts will be measured and valued so that they can be 
considered alongside the more traditional financial measures used 
for strategic business decisions the impact of transport tofrom the 
hotels hotel operations the entire tourism supply chain within cyprus 
and customer and employee spending impacts will all be within scope 
covering aspects of tourism such as working conditions social
community benefits local economic benefits and tax contributions  
we expect to publish our learnings from the pilot in early 2015
c o m m i tm e n t 	 t o 	 h u ma n 	 r i gh ts
human rights are basic rights that allow individuals the freedom to lead 
a dignified life free from fear or want and free to express independent 
beliefs tui travel is committed to the protection of human rights in 
compliance with applicable laws conventions and regulations throughout 
our worldwide operations 
we acknowledge the un guiding principles on business and human 
rights and have many policies and initiatives in place to identify prevent 
mitigate and account for how we are addressing key human rights issues 
and challenges 
for further details visit our latest sustainable development report  wwwtuitravelplccomsustainability 28 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
g o a l	b y 	 2 0 1 5 … 	
w e 	 w i l l 	 o p e ra t e 	e u r o p e ’ s 	 m o st	
fu e lef fi ci e n t 	 a i r l i n es 	 a n d 	 sa v e 	 	
m o r e 	 tha n 	 2 0  000 	 t o n n es 	 o f 	 ca r b o n	
f r o m 	 o u r 	 gr o u n d 	 o p e ra ti o ns	
we will measure this through tui travel airlines’ 
average carbon emissions per revenue passenger 
kilometre co
2
rpk and co
2
 saved from our 
major premises retail outlets brochure paper 
production differentiated hotels and fleets of 
vehicles against 2011 baseline
c a r b on
80
arke tuifly nordic thomson 
airways and tuifly are  
all iso 14001 certified –
covering 80 of our aircraft
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
we are committed to reducing carbon emissions which is 
a key challenge for tui travel and the rest of the industry 
we want to prepare for a lowcarbon future by reducing 
our environmental impact and encouraging our suppliers 
and customers to do the same travel and tourism accounts 
for around 5 of global carbon emissions unep  2014 – 
half of which is attributable to aviation 
carbon management is a critical part of our business practices 
protecting the environment and saving us money now and into the 
future across tui travel improved management of energy natural 
resources and fuel across our operations has saved a total of £28 million 
in 2012 and 2013
we take this challenge seriously – the carbon efficiency of our airlines is 
one of tui travel’s key performance indicators as a business our carbon 
management strategy covers not only aviation but also hotels major 
premises retail shops water transport and ground transport emissions
our customers trust us to make their holiday experiences special 
predictable weather personal comfort and beautiful destinations 
are part of the product we sell – and all of these are threatened by 
climate change 
we expect that national governments and international organisations 
will take decisive action on climate change including putting in place 
fair and effective regulation around carbon we have identified climate 
changerelated regulation as a material issue for the company see 
page 50 and monitor upcoming regulation that could have a financial 
or reputational impact on the group 
in 2014 tui travel airlines’ total carbon emissions were 5014068 
tonnes a reduction of 17 compared to 2013 emissions from aviation 
make up over 88 of our company’s carbon footprint
we operate europe’s most fuelefficient airlines investing in cutting
edge aviation technology and playing an active role in advocating 
smarter carbon legislation 
f y 1 4 	 h igh l igh t s
• co
2
 per revenue passenger kilometre rpk across tui travel 
airlines in 201314 of 699g an improvement of 103 since 200708 
– making us the most efficient airlines in europe and beyond 
• tuifly was ranked the most climateefficient charter airline 
worldwide for the third year in a row and most climateefficient 
airline in the world with more than one million passengers for the 
second year in a row in the 2014 atmosfair airline index 
• thomson airways won the best aviation programme for carbon 
reduction at the 2014 world responsible tourism awards
• arke achieved iso 14001 certification an international environmental 
management standard tuifly nordic thomson airways and tuifly 
are also iso 14001 certified – this certification now covers 80 of 
our aircraft 
• 97 of our aircraft are now fitted with fuelsaving blended winglets 
reducing fuel burn by up to 5 
• tui travel airlines were the first in europe to use the new innovative 
split scimitar winglets reducing fuel burn by an additional 2
• thomson airways jetairfly and arkefly have all taken delivery of 
the innovative boeing 787 dreamliner aircraft which has exceptional 
environmental performance
ai rline	 g h g 	 e mi ssi on s	d a t a	for	pe ri od	 1 	 oc t obe r	 20 1 3 	 –	
30 	 se p te mbe r	 20 1 4 	 inten sit y 	  re l a tive  	m e t ric
tui travel airlines
gco
2
revenue 
passenger  
km
gco
2
erevenue 
passenger 
km
arke 710g 717g
corsair 834g 843g
jetairfly 730g 738g
thomson airways 671g 678g
tuifly 663g 670g
tuifly nordic 654g 661g
tui travel airlines average 699g 706g
 when calculating the carbon
efficiency relative or intensity 
metric the focus is on 
‘revenue’ flights ie rpk this 
includes all flights conducted 
under tui travel airlines flight 
numbers it excludes sub
charters flying for tui travel 
airlines subcharters tui 
travel airlines fly for other 
airlines positioning flights 
but includes ferry flights ad 
hoc flights such as for training 
technical allcargo
s t r a t e g i c	r e p o r t 	how we do it
sustainable development 201 2 1 3 201 2 1 3
tui travel airlines 
and aviation 884
water transport 41
ground transport 04
major premises 06
differentiated hotels 55
other indirect emissions 
including business 
travel by air 10
2013 1 4
 carbon footprint covers 
scope 1 direct emissions 
and scope 2  3 
indirect emissions 
the scope of the tui travel 
airlines carbon data is as 
follows for the absolute 
fuel burn and carbon data 
calculations all flights 
conducted under each 
airline’s flight number 
including subcharters 
flown by tui travel airlines 
but excluding subcharters 
the tui travel airlines fly 
for other airlines are 
included in the scope 
29 tui travel p l c annu al repo rt  accounts 2014
	
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bre akdo w n	 of 	t ui	t r a ve l ’s	 	
c ar b o n 	 f o o t p r int
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
• we have partnered with boeing for the next phase of their 
ecodemonstrator programme which aims to accelerate the 
development and testing of technologies to improve the 
environmental performance and sustainability of commercial 
airplanes testing of the tuibranded ecodemonstrator 757 
flight test airplane will commence in 2015
• tuifly nordic has joined the nordic initiative for sustainable 
aviation nisa which brings together key players from the 
nordic aviation sector to push forward the development of 
sustainable aviation fuels
• jetairfly and arke introduced electric cars airside at amsterdam’s 
schiphol airport and brussels airport
• jetairfly won the environment award at the 2014 brussels airport 
aviation awards 
• carbon emissions have been reduced by 19 yearonyear across 
tui uk  ireland’s retail estate and brochures
we have developed collaborative partnerships with many stakeholders 
whose insight and guidance continue to help us develop our position on 
aviation and climate change examples include cdp formerly carbon 
disclosure project sustainable aviation fuel users group safug 
sustainable aviation in the uk aviation initiative for renewable energy 
in germany aireg and algaeparc in the netherlands
gr e e n h o use 	 gas 	 e m iss i o ns
tui travel has reported on all of the greenhouse gas ghg emission 
sources required under the companies act 2006 strategic and 
directors’ reports regulations 2013 the organisational boundary 
used for its scope 1  2 and where appropriate scope 3 inventory  
of ghg emissions is operational control and it corresponds to the 
company’s consolidated financial statements 
tui travel is disclosing carbon dioxide equivalent co
2
e data for  
both its absolute and relative emissions co
2
e refers to co
2
 and  
the other five kyoto ghgs – methane ch
4
 nitrous oxide n2o 
hydrofluorocarbons hfcs perfluorocarbons pfcs and sulphur 
hexafluoride sf
6

all material ghg emissions have been included and disclosed following 
a thorough review of entities and the emissions sources across the 
company’s uk and international operations the methodology for  
the assessment is based on voluntary and mandatory ghg reporting 
guidance issued by defra the uk government’s environment 
department please see tables below for our absolute and intensity 
co
2
e and co
2
 data for fy2014
  an approximate figure of group savings that have been tracked gross of any upfront investments 
required to achieve those savings in 2012  2013 part of previously identified cost savings
  pwc the company’s auditors has verified the carbon intensity metrics displayed in the table 
on page 28 pwc also assure our airline eu emissions trading scheme data to read our 
airline carbon data methodology document and pwc’s assurance report in full please visit 
  
wwwtuitravelplccomsustainabilitycarbon
gl obal	 gh g 	 e mi ssi on s	d a t a	for	pe ri od	 	
1 	 oc t obe r	 20 1 3 	 – 	 30 	 se p te mbe r	 20 1 4	
ab so l u te 	 f i g u r e s
source
co
2
 t 
tonnes of  
carbon dioxide
co
2
e t  
tonnes of carbon 
dioxide equivalent
total scope 1 
emissions 5865385 5927861
total scope 2 
emissions 315201 315374
other scope 3 
emissions 62206 62391
g r an d 	 t o t al 6242792 6305626
scope 1 covers 
direct emissions
 scope 2  3 
covers indirect 
emissions 30 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
c ol l e a gu e s
responsible leadership is one of our core values and 
commits us to making a positive impact on society 
celebrating local differences and contributing to a 
better world our colleagues need to be enthusiastic 
and knowledgeable about tui travel’s sustainability 
commitments and the role they play in delivering them
today’s employees are not only motivated by money and status but 
also by the knowledge that their employer’s values align with their own 
the evidence shows that employees who are engaged in sustainability 
– who are encouraged to share their experiences with others – are 
happier and more productive at work values matter even more to the 
leaders of the future 80 of 1325 year olds want to work for a company 
that cares about its impact on society forbes 2014
we want our colleagues across the world to understand and bring to 
life the tui travel values and know that they can take action in their 
daytoday lives responsible leadership is increasingly embedded  
into how we measure behaviour and performance across the group 
we communicate regularly about the issues successes and challenges of 
sustainable tourism to our colleagues across the group sustainability 
information can be found in recruitment materials intranets newsletters 
inductions blogs by senior managers short films and elearning modules
f y 1 4 	 h igh l igh t s
• sustainability awareness – raising initiatives were implemented 
across the group such as tui nordic’s sustainability training video  
for holiday advisers and specialist holidays group’s sustainability 
week with a different theme for each day
• our colleagues united to protect holiday destinations by taking part  
in the travel foundation’s big holiday beach clean for ’make holidays 
greener’ month in july over 700 people took part cleaning 30 plus 
beaches and collecting 400 bags of rubbish over 35000 pieces
• we have set up networks of sustainability champions made up of 
people who know how to inspire change in their business area for 
example tui nordic has a network of isocoordinators who helped 
to implement iso 14001 tui deutschland has environmental 
ambassadors who meet regularly tui nederland has sustainability 
champions in each product department and tui uk  ireland has 
champion networks in place in retail head office and overseas
• training programmes were rolled out across retail such as a 
sustainability module within tui uk  ireland’s new online induction 
• community volunteering programmes are one of the ways we engage 
our people in sustainability enabling them to see projects in action 
and develop their own skills many of our businesses allow colleagues 
one day per year to volunteer for a charity in their local area for 
example 80 colleagues from bedsonline asia and hotelbeds in south 
east asia travelled to san remigio in the philippines to help rebuild  
a school devastated by typhoon haiyan 
• tui travel was shortlisted for a 2014 hr excellence award for 
embedding the sustainable holidays plan throughout our company
700
in july over 700 people 
dedicated their time to 
help clean up beaches in 
20 destinations around 
the world
g o a l	b y 	 2 0 1 5 …
o u r 	 c o l l e a gu es 	 w i l l 	 ra t e	 	
t u i	t ra v e l 	 as 	 a 	 l e a d e r 	 i n	
susta in a b i li t y
we will measure this through the your  
voice global employee opinion survey 
results – aiming to meet high performing 
company scores for responsibility towards 
the environment and community for all 
colleagues and senior leaders
f am i l y 	 h ol i d a y 	 a sso ci a ti o n
we are the largest corporate sponsor of the 
family holiday association fha a charity 
that provides simple breaks to disadvantaged 
children and their families in the uk 
since 2009 we have raised more than  
£2 million peter long chief executive  
of tui travel was appointed president 
of the fha on 1 october 2013
 wwwfhaonlineorguk
s t r a t e g i c	r e p o r t 	how we do it
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g o a l	b y 	 2 0 1 5 …
c ust o m e rs 	 w i l l 	 r e ga r d 	t u i	 	
t ra v e l 	 as 	 a 	 l e a d e r 	 i n 	 d e l i v e r i n g	
m or e 	 s usta in a b l e 	 h oli da ys
we will measure this by our performance in 
consumer research in our key source markets
c ust o m e r s
tui travel’s vision is to make travel experiences special 
customers are at the heart of everything we do and 
that means we must involve them in order to become 
a more sustainable business and help drive a more 
sustainable industry
our customers are critical to delivering some of our most important 
sustainability goals we need to make sure that clear links are made 
between sustainability and the holiday experiences they value and 
encourage them to take action in a way which is engaging and memorable 
we have found a positive correlation between more sustainable holidays 
and customer satisfaction
according to the research we undertook in 2012 which covered  
3000 people in several of tui travel’s key source markets modern 
mainstream consumers are more engaged with sustainability compared 
to traditional mainstream consumers 
• one in two would be willing to book a more sustainable holiday  
if available
• one in two want their holiday company to be clear about what  
they do to make their holidays more sustainable
• they are more interested in social and community issues than 
traditional mainstream consumers
• the sustainability aspects that interest them most in the destination 
are fair working conditions learning about the country and the 
people and changing their behaviour to help the environment
sustainability is not a primary driver of consumer preference for 
mainstream holidays – customers are more interested in price quality 
food service and unique destinations the good news is that these are 
exactly the aspects of our holidays that sustainability helps to support 
minimising waste in energy and resources helps us deliver value for 
money hotels that treat their people and the local environment with 
consideration are developing a quality product with friendly staff and 
beautiful unique destinations rely on the tourism industry committing 
to protect them
f y 1 4 	 h igh l igh t s
• we are encouraging holidaymakers to engage in sustainable tourism 
through our kids’ club activities school education initiatives 
customer donation schemes and sustainable tourism campaigns 
• since 2011 over one million uk school children have participated  
in the ecotraveller programme which teaches them how to make  
a difference on holiday 
• over £14 million raised through the world care fund customer 
donation scheme the funds are channelled into projects that  
help address the environmental impact of tourism and support 
communities around the world
• fritidsresor our brand in sweden was ranked the most sustainable 
travel company in sweden in the 2014 sustainable brand index and 
by the differ survey
• across the group our businesses are working to reduce brochures 
and to use digital platforms throughout the customer journey  
the tui digital assistant app has now been rolled out in austria 
germany the nordics switzerland and the uk and has been 
downloaded over one million times
• our mainstream businesses in germany and austria have partnered 
with myclimate to offset the carbon emissions from all customer 
rental cars from april 2013 to date over 26000 tonnes of co
2
 has 
been offset via projects in turkey and china
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
1 	 mi lli o n	
number of uk school 
children who participated  
in the ecotraveller 
programme since 2011
givin g 	 b a c k
the intrepid foundation is a notforprofit 
organisation and has distributed over 
au35 million to more than 70 non
government organisations since 2002 
matching customer donations dollar  
for dollar contributing to health care 
education human rights child welfare 
sustainable development and 
environmental and wildlife protection  
jac k y 	sa y s	 “th a n k	 y ou …”
1 2 3
32 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  design
how we do it our people
s t r a te g i c 	 r e p o r t
e n ga gi n g 	 a n d 	 i n v o l v i n g 	 o u r 	 c o l l e a gu es
although tui travel is made up of a diverse and unique range of 
brands and businesses they share many similarities due to a shared 
vision and common values 
nurturing these values is key to our strategy following the first tui 
travel groupwide global opinion survey that took place in september 
2012 we identified three key areas to strengthen the engagement of 
our colleagues
• pride colleagues told us that they were looking for a better 
opportunity to identify with tui travel as a great place to work 
• trust we aim to build trust right across our organisation by giving 
people more opportunities to get involved and delivering more 
targeted and transparent communications
• opportunity our colleagues asked us for better accessibility to 
opportunities that would enable them to grow and develop within 
tui travel colleagues wanted to develop a career within the 
company rather than viewing their role as just another ‘job’
over the past year we have continued to address these key areas 
through a number of groupwide initiatives detailed below
p ride 	 – 	 the 	 intr oduc ti on 	 of 	 an 	 emplo y er 	 brand
people told us that tui travel was such a great place to work they felt 
we should use the strength of our scale and size when trying to attract 
and retain people within the organisation we also wanted to find a 
way to express what binds us today in a common and shared colleague 
experience no matter where you work in tui travel to capture this 
we have introduced an employer brand that describes in a clear way 
the experience you will have working for the group it is centred 
around the three key pillars described on the following page
4 	d a vi d	 burlin g	 m a na g in g 	 dir ec to r 	 	
t ui	 uk 	  	i reland
david was appointed managing director for tui uk  
ireland tui uk in october 2011 david previously held 
the position of commercial director for tui uk following 
the merger of the tourism division of tui ag and 
first choice in september 2007 david was key to the 
successful integration of the businesses ensuring that 
both brands had clear strategy for growth david first 
joined thomson holidays in 1990 and is now a member 
of the mainstream sector board in april 2012 he was 
appointed to the group management board 
our 	 visi o n 	 is 	 to 	 ena bl e 	 o u r 	 co l l ea gu es 	 to	
be 	 bet ter 	 co nnec ted 	 m o r e 	 i n 	 to u ch 	 a nd 	 i n	
tune 	 wit h 	 o ur 	 custo m er s  	 wh i lst 	 d el iv eri n g	
per so na l ised 	 h o l i da y 	 experi en ces 	 t ha t 	 wi l l	
a lwa ys 	 be 	 r emem ber ed
t his 	 y ear 	 our 	 focus 	 in 	h r 	 has 	 been 	 on 	 dev elopin g	
a 	 co nsistent  	 ef f o r t l es s 	 a nd 	 en g a gi n g 	 experi en ce	
f o r 	 o ur 	 co l lea gu es  	 wh i ch 	 i n 	 tu rn 	 wi l l 	 be	
t r a nsferr ed 	 to 	 o u r 	 custo m er s  	 on ce 	 a g a i n	 	
o ur 	 co l lea gues 	 ha v e 	 sh o wn 	 gr ea t 	 pas si o n 	 a nd	
co mm it ment 	 to 	 ensu r e 	t u i	t r a v el 	 d el iv er s	
h o l ida y 	 experi en ces 	 t ha t 	 s a tisf y 	 t h e 	 e v er 
cha n gi n g 	 needs 	 of 	 o u r 	 custo m er s 
i	 w o uld 	 l ik e 	 to 	 s a y 	 t ha nk 	 y o u 	 to 	 o u r 	 pe o pl e 	 	
f o r 	 bri n gi n g 	 t he 	t u i	t r a v el 	 va lu es 	 to 	 l if e 	 a nd	
ma ki n g 	 it 	 such 	 a 	 gr ea t 	 place 	 to 	 w o rk 
jack y 	 si mmo nds
j a c k y 	s i mmon ds	 g r ou p 	 h r 	 dir ec to r
jacky simmonds joined first choice in 2000 from hearst 
magazines uk the national magazine company where she 
led the hr function for six years she was appointed as group 
hr director in 2010 having previously held a number of senior 
positions across the group jacky was appointed hr director 
for tui uk  ireland in 2007 and following the merger was 
central to the integration of the first choice and thomson 
businesses since her appointment in 2010 there is a more 
aligned approach to hr across the group which includes the 
creation of talent programmes global functions for resourcing 
and the development of an integrated hr strategy jacky has 
experience of leading largescale transformation programmes 
on both a local and global level
1  	 pe te r	 l on g
2  	 wi lli am	 w a ggot t
3 	 joh an 	 l un dgre n
for executive biographies go to page 64 4 5 6 7
33 tui travel p l c annu al repo rt  accounts 2014
	
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• winning together we are passionate about our work we inspire  
and respect each other 
• freedom to shine our global businesses are fast moving dynamic 
and rich in development opportunities 
• pushing boundaries we never stop looking ahead seeking new  
ways to delight our customers and grow our business we embrace 
technology innovate and adapt at speed staying true to our values
since being developed these pillars have been used in a number of 
recruitment campaigns across the group and have provided a global 
identity for employees across the world for the first time
t rust 	 – 	 in v olvin g 	 emplo y ees 	 in 	 the 	 wa y 	 w e 	 w ork
we’ve given over 300 of our colleagues the opportunity to get directly 
involved in the work to transform our business
many more colleagues are indirectly involved through focus groups 
surveys and interviews giving a broad representation of people a 
chance to have their say in making our business more innovative 
futureproof and effective 
with this ongoing dialogue at all levels we are building trust and 
bringing the company closer together beyond this we understand 
trust as the experience of our colleagues in their daily work with their 
leaders and coworkers we have put a great deal of emphasis on the 
ongoing clear communication of our strategy and achievements as a 
company and will continue to invest in the development of our leaders 
at all levels 
oppor tunit y 	 – 	 global 	 j obs 	 and 	 learnin g 	 oppor tunities
in july 2014 we launched an internal careers portal to increase internal 
visibility of job vacancies across parts of tui travel for the first time 
the portal is currently being developed further to give colleagues 
access to an even wider range of opportunities across the globe
we have also launched a global learning management system which 
will give colleagues worldwide access to state of the art learning once  
it is fully implemented 
the portal encourages colleagues to take responsibility for their own 
development and is multilingual accessible via the internet enabling 
learning anytime anywhere via laptop ipad or smartphone and 
assists collaboration by supporting the transfer of best practice across 
the group the learning management system has been developed to 
facilitate a variety of different learning needs personal and leadership 
development compliancemandatory training and functional skills  
and knowledge as well as being embedded in the finance academy 
with over 2000 people actively using it the academy has now been 
embedded across our uk retail and destination teams 
in january tui germany implemented magellan a software 
programme allowing employees to be trained on a variety of topics 
including automated contract generation employer’s reference creation 
and feedback sessions more capability will be progressively added to the 
software to cater for all areas of the business
we are very interested in finding out how these initiatives have worked 
to shift perceptions across the group and will capture this during the 
your voice opinion survey in 2015 
5 	 mit t u	 sri dh ar a	 c h i e f 	 i nf o rm at i on 	 o f ficer
mittu’s main focus is transforming tui travel plc 
into a digital online business that is able to serve its 
customers ‘anywhere anytime any way’ mittu has 
led global technology teams and formulated and 
delivered several multichannel technology platforms 
and industryleading digital products prior to this 
mittu has held senior it roles at global organisations 
starting his career at american airlines decision 
technologies and moving on to companies including 
sabre holdings the world’s leading provider of it 
solutionsdecision support systems to the global travel 
and transportation sector ladbrokes plc and avis 
europe plc mittu has featured in the top 50 of the 
techrepublic cio50 list for several years
6 	c h ri sti an 	cl e me n s	 m a na g in g 	 dir ec to r 	
t ui	 germany
christian clemens joined the group management board 
in july 2012 prior to this he was ceo of tui nordic 
from 2009 to 2012 joining the company as general 
manager sweden in 2004 and then becoming 
responsible for denmark finland norway and 
sweden as coo of tui nordic in 2007 between 1989 
and 2004 christian held a number of senior roles with 
thomas cook northern europe christian graduated 
as an engineer in industrial economy
7  	 jo an 	v i l à 	 m a na g in g 	 dir ec to r 	 	
acco m m o d at i o n 	  	 d e s t in at i o n s
after developing his professional career in the destination 
services division of the barceló travel group joan vilà 
was appointed managing director of the division in 
1999 which was integrated into first choice holidays 
plc first choice in 2000 in november 2002 he 
became a member of first choice’s group management 
board joan is currently the managing director of the 
accommodation  destinations sector of tui travel 
plc and is also on the group management board 
he has an mba from iese a degree in economics 
from the university of barcelona and has completed 
international business school programmes with 
columbia business school and imd 34 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  design
how we do it our people
continued
d i gi ta l l y 	 e na b l i n g 	 o u r 	 p e o p l e
our digital transformation journey began in 2013 and has become  
a key feature of our strategy to become a truly consistent effortless 
and engaging team
as part of one mainstream’s digital transformation our vision is to 
create a single environment that is available to our global colleague 
base – anytime anywhere any way this includes providing instant 
access to customer data communications colleague data social 
interaction and working practices and improving collaboration and 
efficiency in how we work and increasing the awareness in expertise 
and knowledge sharing in doing so we will empower our colleagues  
to become brand ambassadors and encourage them to fully engage 
with our customers and their colleagues
in our mainstream and specialist  activity sectors we have been 
piloting schemes allowing our reps in resorts to support customers 
through ipads this ensures colleagues can engage with customers 
over social media prior to and during their holidays and thereby 
further improving customer service levels we have had great feedback 
following these pilots and are looking into rolling it out across more  
of the business 
real time communication and collaboration amongst colleagues has 
been facilitated this year by installing an instant messaging tool  
lync for teams based in the uk  ireland and france this is both  
an efficient and informative tool and allows people to make contact 
quickly easily and simply
i n v esti n g 	 i n 	 o u r 	 l e a d e rs
at tui travel we know that we need talent and strong leadership 
facilitated by development opportunities in order to deliver our strategy 
and cement the business’s future some of the key programmes to 
support these opportunities are as follows 
for highpotential senior leaders there is our g l ob al 	 h ig h 	 p e r for m an c e	
le a d e r sh ip programme which focuses on their development whilst 
equipping indviduals to support our commercial business growth 
and strategy sponsored by the deputy chief executive and md of 
one mainstream johan lundgren the programme aims to enhance 
strategic thinking and leadership skills creating the foundation for 
more active collaboration across the group 
the programme is run by the prestigious imd business school in 
switzerland where participants solve real strategic business priorities 
in a learning environment which results in tangible improvement plans 
we also have a development portfolio for colleagues in the earlier 
stages of their career who have been identified as high potential and
or successors to commercial senior leadership roles in the future
p e r spe c tiv es  sponsored by joan vilà md accommodation  
destinations sector takes ‘rising stars’ on a journey to widen their 
understanding of the group strategy and our expectations of future 
leaders the programme helps drive the mobility of talent across the 
group supporting our culture of global leadership
h o r iz o ns  sponsored by david burling md uki mainstream focuses 
on highpotential senior leaders who have been identified as successors 
to more senior roles the programme takes participants through 
a businessled initiative to identify ways we can meet our business 
challenges whilst also developing their personal leadership styles at 
all levels
to support all managerial development we have introduced two new 
leadership programmes 
leadership 	e ssentials 	– focuses predominantly on self and people 
leadership how we expect leaders to behave in tui travel it is designed 
for those who have just commenced their leadership journey to embed 
the behaviours which encourage and bring out the best in people 
lea d e rsh ip 	 e v o l u ti o n – an advanced programme focusing on people 
and business leadership this is for more experienced managers 
enabling them to explore the evolution of themselves as a leader  
and the organisation in the face of a rapidlychanging environment
in addition to these groupwide development initiatives we also offer 
bespoke internal and external mentoring and coaching
through the people performance management process in germany  
70 leaders had the opportunity to attend a development centre to 
build on their leadership potential where they receive feedback  
from external consultants on their progress by creating a learning 
environment where people can demonstrate high performance we are 
able to identify potential and in turn give them more responsibility
in germany we offer selected colleagues an opportunity to take on 
projectbased work with a global perspective over a twoyear period 
employees can take on the role of a people or operational leader 
where they cover topics such as working in an international organisation 
digital transformation dealing with ambiguity building resilience and 
change management part of the selection process to determine if people 
are ready to attend the twoyear programme is successful completion 
of a oneday development centre aligned to the requirements of the 
international group development programmes perspectives and 
horizons all participants in this talent pool have the opportunity 
to apply for these international group development programmes
t t g 	 30 	un de r	 30
 this year three tui travel colleagues have 
been recognised as top upcoming talent in 
the travel and leisure industry benjamin 
dean international graduate bart 
quinton smith analyst tui uk  ireland 
and oliver bowden senior retail manager 
tui uk  ireland have all been selected 
by ttg as members of the ‘tomorrow’s 
travel leaders 30 under 30’ scheme which 
identifies and selects the brightest young 
talent in the industry 
s t r a te g i c 	 r e p o r t 35 tui travel p l c annu al repo rt  accounts 2014
	
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learning conferences have also been established as an instrument for 
the development of talent and management this initiative was started 
by tui germany and is now a groupwide measure in mainstream 
germany where colleagues share experiences and understanding 
the event covers strategic topics that underpin our business success 
and the satisfaction of our employees 
there has also been a series of seminars run for our leaders an example 
of one of these seminars ‘conflict management in change’ was devised 
to ensure we are prepared for upcoming change processes as well as 
dealing with resistance to change around 100 leaders have participated 
so far
d e v e l o p i n g 	 o u r 	 ta l e n t 	 p i p e l i n e
the international graduate leadership programme continues to 
attract develop and retain highquality graduates who are earmarked 
to become our future senior commercial leaders
to reflect the increasing globalisation of our business we focus on 
attracting graduates with an international mindset and a professional 
approach seen as suitable for our fastpaced everchanging 
environment there are two small intakes annually another eight 
graduates joined our team in september 2014 from france india 
spain croatia germany romania the netherlands and belgium 
there is a mentoring programme in place on the scheme which provides 
support throughout the 18month duration and senior leaders commit 
to meeting and helping graduates with specific assignments speaking 
a minimum of two languages including english our graduates are 
provided with significant international commercial business exposure 
across the group with the aim for them to become emerging leaders 
within four years
since 2010 41 graduates have joined the business they complete four 
business placements a fiveweek overseas placement attend four 
oneweek training blocks and participate in a group project to look  
at a business challenge over 80 of these graduates are still in the 
business we have been recognised in germany by the online career 
platform for students graduates and young professionals ’absolventa’ 
– who have commended us for having a careerenhancing and fair 
international graduate leadership programme also in thejobcrowd 
top companies for graduates to work for we have been placed 19th 
12 places higher than our 2013 ranking with some excellent feedback 
being given by our graduates
in tui germany we deliver an intern programme which forms part  
of ‘adelante’ an initiative started by the chamber of industry and 
commerce in hanover to take action against the unemployment of 
young people in spain in april 2014 two young spaniards began their 
threemonth internship and from september they will commence a 
yearlong internship
in august and september 2014 172 young people began their first 
professional job through tui germany’s retail airline and tbs divisions 
over the next three years they will have onthejob training with the 
aim of becoming merchants in tourism travel agents merchants in 
dialogue marketing office clerks and aircraft mechanics in addition 
to their practical training tui germany will also provide academic 
vocational schooling aiming to give young people the best possible 
start in their careers
in june 2014 we launched a series of workshops for colleagues across 
tui germany tuifly tui business service tui 4u tui service 
tui aqtiv tui ag robinson club and tlt service these workshops 
have been designed in an interactive and innovative way to discuss 
exciting current and forwardlooking strategic issues the people in 
attendance found it extremely useful to debate current issues as 
well as network across multiple companies and learn more about the 
culture at tui travel the events took place in different locations and 
were sponsored by senior leaders they will continue throughout the 
next financial year 
in the uk  ireland we have a leading employer apprenticeship 
programme we continue to partner with the skills funding agency 
and city  guilds to deliver vocational training through our inhouse 
accredited programmes department we deliver over 400 qualifications 
every year including apprenticeships nvqs and institute of leadership 
 management certificate and diploma programmes the programmes 
recognise and support all aspects of our business and provide 
qualifications ranging from customer service to chefs and sales to 
airline operations the uki team has supported the delivery of these 
programmes in the specialist  activity sector of the jca business 
and specialist holiday group shg finance the expertise of the team 
has supported both of these areas to attract retain and develop 
talented candidates
to support succession planning programmes we have launched the 
institute of leadership management qualifications level 2 and 3 and 
currently have 82 colleagues on the programme these programmes 
are designed to support and develop talented sales advisers and 
assistant managers who undertake assignments and are offered 
opportunities for secondment which in turn aids the group with 
succession planning
we also have a placement scheme with eight students joining the 
201314 programme and another seven starting in 201415 the 
placement students work in different areas of the business including 
product early trading late trading cruise trading ecommerce  
and purchasing there is also a school leaver scheme which takes 
students that have finished their ‘alevels’ and rather than going to 
university join tui travel this is a twoyear programme where they 
work in the same areas as the placement students and eventually will 
aim to take on the same formal roles this programme is in its third 
year now and is working well we are working with city  guilds to 
develop a specific qualification that can be awarded to those who 
complete the programme 36 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  design
how we do it our people
continued
in our specialist  activity sector great progress has been made to 
develop a formal graduate sales programme this has been designed 
to improve the sales capability within this sector building on the agility 
of the specialist  activity sales model which can move talent across 
portfolios as required whilst ensuring future managers are given 
development opportunities early on 
the navigator programme is one which is specially designed for 
colleagues who have been identified as young talent within specialist 
 activity and forms part of the sector’s succession planning it has 
now been rolled out to europeanbased colleagues within the specialist 
 activity sector with plans to deliver this to colleagues based in the 
us in the future
gl ob a l 	 m ob i li t y 	 a n d 	 c olla b orati on
in december 2013 we announced the transformation of our mainstream 
sector into one mainstream this was a turning point for opportunities 
in collaborative working practices encouraging a global best practice 
model as well as global mobility and driving a big picture mindset
an example of this collaboration can be seen in our digital transformation 
model where we have created centres of excellence hubs in which 
digital solutions are developed once and deployed to all source 
markets the success of the tui digital assistant app pays testament 
to what can be developed within these multilocational collaborative 
hubs and it has now been rolled out into five source markets
two initiatives have been developed with the specific aim of building 
the global mobility of our colleagues across the group and furthering 
their career development 
the first is a new global resourcing function focusing on senior 
leadership and internal talent pools this helps to drive international 
moves and internal promotion across the business which forms part  
of our hr strategy whilst the second is the development of ‘talent 
panels’ to monitor talented indviduals so the business has an easy  
way to input into talent discussions 
a 	 t e a m 	 o f 	 i n d i v i d ua ls 	 – 	 str e n g th 	 i n 	 d i v e rs i ty
we have a global workforce with a wide range of different cultures  
and backgrounds which gives depth and breadth of experience and 
understanding – a team of diverse individuals all of whom contribute 
to our market leadership 
illustrating this diverse workforce 57 of our 210 senior leaders  
based across 24 countries are female across our total workforce 
approximately 61 of all employees and 30 of managers are female
we are clear that we do not tolerate discrimination under any 
circumstances and our ethos is that opportunities should be equally 
available to everyone we have principles and guidelines in place to 
ensure this is maintained at every level throughout our company
‘spotlight’ is a new programme which allows us to identify and  
target specific groups who are underrepresented in the group
r e wa r d i n g 	 o u r 	 c o l l e a gu es 	 a n d 	 su p p o r ti n g	
thei r 	 w e l l b ei n g
when it comes to making travel experiences special we recognise that 
it is the dedication of our colleagues that makes the difference and we 
strive to make sure they feel valued
recognising the importance of good retirement planning we continue 
to offer pension arrangements across the group reflective of local 
legislative requirements as well as the economic position of our 
business and local market practice 
in the uk there continue to be significant changes to pension legislation 
following the implementation of pension autoenrolment in 2013 
we are working closely with our partners to ensure that we can adapt 
to facilitate these changes as they take effect
the health and wellbeing of our colleagues is paramount and we have 
built upon the work started by tui uk  ireland and tui germany by 
providing wellbeing programmes and initiatives for our employees
t ui	tr a ve l	join s	 the 	t our i sm	i n dust r y 	c ou nci l
 tui travel has just embarked on a fantastic new opportunity to shape the development of the uk 
tourism industry along with 21 other leaders in the industry such as easyjet expedia and visitbritain 
it has joined a partnership with the government together they will become the new tourism industry 
council using their expertise to develop skills and share best practices whilst enabling the tourism 
industry to innovate and grow this is the first time that such a partnership has been set up and 
further cements our role as a business leader within the uk peter long commented
‘ the importance of outbound tourism in the uk can be overlooked at times but it is a significant 
part of the industry we alone take over five million britons on holiday every year directly 
employing some 20000 people in the uk i’m therefore delighted to be part of the council and i 
look forward to playing my part in the development of our industry now and in the years to come’
 the partnership follows a recent government drive to increase the availability of apprenticeships 
within the country it is also significantly the first time that there has been a crossgovernment 
council including both the tourism minister and the minister for skills and enterprise
s t r a te g i c 	 r e p o r t o u r 	 a p p r e n ti c esh i ps 	 c o n ti n u e 	 t o 	 w i n	
a wards
1  	 samantha 	 r eed was a finalist and highly 
commended at the tt g ‘travel seller of  
the year’
2 	 sophie 	 pa ge was a recent city and guilds  
‘medal for excellence’ winner
3  	t homas 	n ewb y was a regional finalist and highly 
commended in the national apprenticeship award
37 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  13102014  design s t r a t e g y
s t r a t e g i c	
dr ive r s
g r o w t h 	 	
ro adm ap 	 t arg e t
d e l ive r in g	
	 m a i n s t r e a m 	 grow t h
o rg a n i c 	 s pe c i al i s t 	
 	 ac t i v i t y 	g row t h
c o nte nt
b r a n ds 	 	 	
d i s t r i bu t i o n
t e c hn o lo g y g r ow t h 	 	
 	 sc ale
pe o pl e
ke y	 t o	 st r a te gic 	dr ive r s
see more about our strategic drivers on page 14
38 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  xx082014  design
s t r a te g i c 	 r e p o r t
how we measure it key performance indicators kpis
uniq u e 	hol i d a y s	o n ly 	a v a i labl e 	from	t u i	tra ve l
our unique holidays form the backbone of our mainstream businesses 
and are exclusive to us unique holidays provide value added services and 
features which command a margin premium over commodity products 
this in turn leads to higher customer loyalty and an increase in repeat 
bookings unique holidays also book earlier enabling us to manage our 
capacity and yield more effectively and it is very difficult for our 
competitors to replicate these concepts
di s t r i bu te d	d i r ect l y 	 t o	 the 	 c us t om e r	 – 	gro w th 	from	o n l ine
our direct distribution channels are central to the group’s strategy by 
increasing the direct distribution of our holidays we lower distribution 
costs reduce the reliance on third party distributors and can build on our 
customer relationships as an onlinedriven business we have a focus on 
the online customer experience during the year we continued to see the 
benefits of the investments we have been making in our online platforms 
we are moving to one core online platform across mainstream 
leve ra g in g	our	s c al e
as europe’s largest tour operator we leverage our scale across all source 
markets to consolidate our marketleading position and grow the number 
of customers travelling with us our one mainstream structure is in place 
and yielding tangible benefits
we have completed our strategic review of the specialist  activity 
businesses and have refocused our plans for profitable growth and 
improved operational efficiency we have a strong portfolio of 
established and popular brands with leadership positions in market 
segments which are continuing to grow 
w e 	 target 	 a 	 unique 	 holida y	
mix 	 of 	 7 6   	 as 	 a 	 pr opor ti on	
of 	 total 	 mainstr eam	
sec tor 	 holida ys 	 b y 	 20 1 7 	
w e 	 also 	 target	
c o n tin u ous 	 im p r o v e me n t	
in 	 custo me r 	 s atisfa c ti o n
w e 	 target 	 a 	 dir ec t	
distributi on 	 mix 	 of 	 8 1  	 and	
an 	 online 	 distributi on 	 mix	 	
of 	 50 	 in 	 our 	 mainstr eam	
sec tor 	 b y 	 20 1 7 
within 	 mainstr eam 	 w e	 	
target 	 o v erheads 	 of 	 less 	 than	
5  	 in 	 ea ch 	 sour ce 	 mark et 	
our kpis enable tui travel’s stakeholders to monitor performance against our 
growth levers see more on page 55  and growth roadmap
7 9	
customer satisfaction score 
in uk nordics and germany 
combined during 2014
7 1 	
of our mainstream holidays 
were unique in 2014
w e 	 target 	 underlyin g	
operatin g 	 pr ofit 	 gr o w th 	 of 	
bet w een 	 8 	 to 	 1 0 	 per	
annum 	 bet w een 	 20 1 2 	 and	
20 1 7  	 includin g 	 deliv er y 	 of	
£9m 	 business 	 impr o v ement	
sa vin gs 	 durin g 	 the 	 fiv e 	
y ear 	 peri od unique 	 holidays 	 mix 	 as 	 a 	 propor tion 	 of 	 tot al	
mainstream 	 sec tor 	 package 	 holidays
2 0 1 3 	 x x    2012 65  2011 62
c ustomer 	 s atisfac tion 	 for 	 key 	 mainstream	 	
source 	 market s 	 rated 	 out 	 of 	 a 	 tot al 	 of 	 1 0 0 
2 0 1 3 	 x x    2012 xx  2011 xx
pe r f o r m a n c e k e y 	p e r fo r m a nc e 	 i n di c a t o r s
at constant currency rates
39 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
in the year we increased the unique holidays mix by three percentage points across the 
mainstream sector as a whole to 71 with improvements in all key source markets
customer satisfaction for the uk nordic region and germany combined remained at the 
record levels achieved in 2013 with continued strong performances by our unique brands
to measure our progress we have two distribution kpis i direct distribution mix  
and ii online distribution mix
direct distribution mix increased to 68 driven by all major source markets 
the improvement in direct distribution was driven by the online channel which has 
increased by three percentage points in 2013 to 38 within this the uk improved 
by four percentage points to 51 the nordic region improved by three percentage 
points to 70 and germany improved by three percentage points to 11
the overall mainstream overhead remained below 5 in 2014 the one mainstream 
programme is continuing to deliver significant benefits and operational efficiencies across 
our source markets
during 2014 the specialist  activity sector saw a mixed performance from its various 
businesses delivering a broadly flat result on a constant currency basis we saw an 
improved result from our north american education and north american specialist 
businesses sport benefited from weak yearonyear comparatives as well as the ashes 
and 2014 fifa world cup tournament however these results were offset by soft trading 
in the adventure and marine businesses
unique 	 holidays 	 mix 	 as 	 a 	 propor tion 	 of	 	
tot al 	 mainstream 	 package 	 holidays
1
2 0 1 4 	7 1   2013 68  2012 65
c ustomer 	 s atisfac tion 	 for 	 key 	 mainstream	 	
source 	 market s
2 0 1 4 	7 9   2013 79  2012 77
1
  unique calculation for 2014 and 2013 updated to include airtours brand  
and longhaul destinations not previously included within packages
direc t 	 distribution 	 mix 	 as 	 a 	 propor tion 	 of	 	
tot al 	 mainstream 	 package 	 holidays
2 0 1 4 	6 8   2013 66  2012 65
online 	 distribution 	 mix 	 as 	 a 	 propor tion	 	
of 	 tot al 	 mainstream 	 sec tor 	 package 	 holidays
2 0 1 4 	3 8   2013 35  2012 33
mainstream 	 overhead 	 as 	 a 	  	 of 	 revenue
2 0 1 4 	4  4   2013 46  2012 52
underlying 	 operating 	 profit
2 0 1 4 	£ 4 0 m 
2 0 1 3 	£ 4 1 m
38 	
of our mainstream  
holidays during 2014  
were purchased online
6 8	
of our mainstream  
holidays during 2014 were 
distributed directly by  
us to the customer s t r a t e g y
s t r a t e g i c	
dr ive r s
g r o w t h 	 	
ro adm ap 	 t arg e t
f o c u s	o n 	f r e e 	 c a s h 	f low	
g e n e r a t i o n  	 ro i c	a n d	
ope r at i on a l	e ff ic ienc y
pi o ne e r i n g	
s us t a i n a b i l it y 	
c h a n g e 	 i n 	o u r	
s e c t o r
l e v e r ag i n g	o u r	g lo b a l	
l e a d e r s h i p 	 p o s i t i o n 	
i n 	 a cco m m o d a t i o n	
w h o l e s a l e r
inve s t in g 	 in	
acc o m m o da t i o n 	 o t a
c o nte nt
b r a n ds 	 	 	
d i s t r i bu t i o n
t e c hn o lo g y g r ow t h 	 	
 	 sc ale
pe o pl e
ke y	 t o	 st r a te gic 	dr ive r s
see more about our strategic drivers on page 14
40 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  xx082014  design
how we measure it key performance indicators kpis
continued
one of our key strategic objectives is to continue to improve the group’s 
profitability and free cash flow and therefore deliver superior returns 
on investment this improvement will allow us to invest further in the 
future of our business which will benefit our customers colleagues 
and shareholders
we are experiencing greater stakeholder interest in sustainability  
and believe that creating more sustainable holidays will help protect  
our product into the future and also support product differentiation  
brand loyalty customer satisfaction and competitive advantage
w e 	 ar e 	 targetin g 	 our 	 airlines	
to 	 r educe 	 per 	 passen ger	
carbon 	 emissi ons 	 b y 	 9	
b y 	 the 	 end 	 of 	 20 1 5 	  a gainst	 	
a 	 baseline 	 of 	 20 08 	
see 	 sustainable	
d e v e lo p me n t 	 se c ti o n
our accommodation wholesaler business hotelbeds and bedsonline is 
a market leader operating in the b2b segment with a global distribution 
presence we have a clear strategy of consolidating our marketleading 
position even further by continuing to grow our existing destinations 
whilst accelerating our expansion into new markets with particular focus 
on asia latin america and africa
in accommodation ota online travel agent our focus is to build on our 
strong brand positioning of lateroomscom in the uk and expand in the 
emerging markets through asiaroomscom across asia and in brazil with 
malapronta brazil’s fourth largest accommodationonly ota
w e 	 target 	 underlyin g	
operatin g 	 pr ofit 	 gr o w th 	 for 	
a c c o m mo dati o n 	 wh o les a le r	
of 	 bet w een 	 1 5  	 to 	 20	
per 	 annum 	 bet w een 	 20 1 2	
and 	 20 1 7 
w e 	 target 	 gr o w th 	 in 	 traf fic 	
and 	 r oomnight s 	 in 	 our	
existin g 	 o t a 	 brands	
l at e r o o ms  	 a sia r o o ms	
an d 	 malap r on t a
£ 1 2m	
business improvement 
savings delivered during 2014
2 1 	
growth in accommodation 
wholesaler underlying 
operating profit in 2014
w e 	 target 	 continuous	
impr o v ement 	 in 	 gr oup	 	
r oic	 and 	 cash 	 con v ersi on 	 	
of 	 at 	 least 	 7 0 	 of 	 pr ofit 	
befor e 	 tax 	
s t r a te g i c 	 r e p o r t pe r f o r m a n c e k e y 	p e r fo r m a nc e 	 i n di c a t o r s
at constant currency rates
41 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
roic performance was strong but slightly lower than 2013 due to the impact of foreign 
exchange translation and an expected increase in the underlying effective tax rate driven 
by a change in the geographic mix of profit
we generated a cash conversion rate of 85 in 2014 significantly in excess of our target 
of 70 of profit before tax 
we delivered £12m of operational efficiency savings through the business improvement 
programme in the last 12 months the programme is now largely complete
our airlines’ per passenger carbon emissions reduced year on year from 707g co
2
rpk in 
2013 to 699g co
2
rpk in 2014 a 103 reduction against our 2008 baseline year this was 
achieved through investment in new fuelefficient aircraft operational efficiencies fuel 
conservation activities and capacity amends
we had another strong performance in accommodation wholesaler in 2014 with 21 
growth in underlying operating profit at constant currency rates ttv grew by 15 from 
£1655bn to £1899bn in 2014 with 16 growth in roomnights topline growth was driven 
primarily by continued expansion in asia and latin america
traffic and roomnights decreased by 6 and 11 respectively in the year driven by  
a planned reduction in unprofitable marketing spend in asiarooms and pressure on 
conversion rates as customers increasingly switch to mobile devices we expect this  
trend to reverse as we continue to improve our mobile capability
8 5 	
cash conversion during  
2014
146 	
strong roic performance in 
2014
grow t h 	 in 	 underlying 	 operating 	 profit
2 0 1 4 	 2 1 
grow t h 	 in 	 roomnight s
2 0 1 4 	 1 6 
decrease 	 in 	 traf fic
2 0 1 4 	 6 
decrease 	 in 	 roomnight s
2 0 1 4 	 1 1  
r o ic
2014 	14  6   2013 148  2012 122
c ash 	 conver sion
1
2 0 1 4 	8 5   2013 93  2012 78
b u s i ne s s 	 i mp r o v emen t 	 p r o g r a mme
2 0 1 4 	£ 1 2 m
1
  free cash flow excludes net aircraft predelivery  
payments and movements in restricted cash 2013 cash conversion  
restated to reflect the adoption of revised ias 19 ‘employee benefits’
c arbon 	 ef ficienc y  	 measured 	 t hrough 	 	
t ui	t ravel 	 airlines’ 	 average 	 c arbon 	 emis sions	
per 	 revenue 	 pas senger 	 kilometre 	  g 	c o
2
rp k 
2 0 1 4 	6 9  9 g	c o2  r pk
2013 707g co 2rpk
2012 730g co 2rpk 42 tui travel p l c annu al repo rt  accounts 2014
stra te gic re por t
tt27  ar 2014  10102014  proof 1
what are the risks principal risks
r isk 	 go v e r na n c e
• successful management of existing and emerging risk is critical 
to the longterm success of our business and a key area of 
management focus
• we continue to strengthen our risk governance framework which 
enables us to identify and understand more fully the threats and 
opportunities in the market place to match these against the 
strengths and weaknesses of our group and to respond accordingly 
our risk management process and the risk software supporting it 
helps to drive clarity consistency transparency and accountability 
at every level of the organisation it enables us to understand and 
manage our risk exposures both individually and in aggregate across 
the group so that at any given time we are incurring the right level 
and the right type of risk to pursue effectively our strategic goals
• we recognise that good risk governance exists when an organisation 
is intuitively sensitive to changes in its risk landscape and its risk 
profile and is quick to flex either its strategic objective andor its risk 
strategy as necessary to drive longterm value we also recognise 
that this capability requires active commitment at the top a strong 
independent risk function clear consistent risk methodology 
and language good information flows and a culture of open and 
honest communication
• our risk governance framework which is aligned to and embedded 
within our business planning cycle is set out below and summarises 
the various riskrelated roles responsibilities and relationships 
operating throughout the group
s tra t e gi c 	 r isk 	 go v e r na n c e
risk s 	 of 	 the 	 strateg y 	 dir ec ti on 
the board determines the strategic direction of the business and agrees 
the nature and extent of the risk it is willing to take to achieve its 
strategic objectives 
however effective risk management is dependent on the capability 
and commitment of our people the n o minati o n 	 c o m mi t t e e ensures 
that an appropriate balance of skills knowledge and experience exists 
in the boardroom to understand and manage the risk environment at  
a strategic level providing a culture whereby risks and assumptions  
are challenged and debated rigorously 
to ensure that the strategic direction chosen by the business represents 
the best of the strategic options open to it the board is supported by 
the gr oup 	 strateg y 	 func ti on this function exists to facilitate and 
inform the board’s assessment of the risk landscape and development 
of potential strategies by which it can drive longterm shareholder 
value on an annual basis the group strategy function develops an 
indepth fact base in a consistent format which outlines the market 
attractiveness competitive position and financial performance by 
sector and source market these are presented to the board by the 
executive directors and time set aside in april july and september to 
allow full consideration and debate as to the level and type of risk that 
the board finds appropriate in the pursuit of enhanced shareholder 
value through this process the strategic options and the tradeoffs 
between risk and reward are debated upfront and through ongoing 
review and refinement are pulled progressively into the close weave of 
strategic intent that best fits the business its culture capabilities and 
resource the strategy once fully defined considered and approved 
by the board is then incorporated into the group’s fiveyear roadmap 
and helps to communicate the risk appetite and expectations of the 
organisation both internally and externally
risk s 	 to 	 the 	 strateg y 	  e x ecuti on 
having determined the appropriate level of risk for the business in 
relation to the potential for reward the board ensures that risks to 
the delivery of the strategic objectives are identified assessed and 
managed effectively 
while the nomination committee ensures an optimum balance of skills 
knowledge and experience required within the executive management 
team to deliver the strategy the r e m u n e rati o n 	 c o m mi t t e e ensures 
the right reward system to drive an appropriate culture of high 
performance with commensurate control business performance relating 
to the achievement of strategic operational and financial objectives is 
reviewed and monitored closely at b usin ess 	 r e v i e w 	 me etin gs chaired 
by the chief executive
the a u di t 	 c o m mi tt e e  on behalf of the board seeks assurance that the 
risk management and internal control system is operating effectively 
throughout the organisation and that risks to the delivery of the 
strategy and longterm viability of the business are being managed 
effectively such that the risk profile is well within the risk capacity of 
the organisation and appropriately aligned with the risk appetite set 
by the board the audit committee receives this assurance from three 
lines of defence 
management the audit committee receives presentations from 
management on a routine basis to understand the key risks facing 
their businesses and how these are being addressed
group functions the audit committee receives updates from the 
gr oup 	 risk 	 mana gement 	c ommit tee grmc and gr o u p 	 r isk	
fu nc ti o n on activities relating to risk management as well as updates 
from the gr oup 	 func ti ons 	 includin g 	 their 	 r elevant 	c ompliance	
fu nc ti o ns  on activities relating to the establishment of control 
standards and adherence to them 
internal audit the audit committee receives assurance from internal 
audit over the processes principal risks and business transformation 
initiatives most critical to the group’s continued success
o p e ra ti o na l 	 r isk 	 go v e r na n c e
whilst ultimate responsibility for risk management rests with the board 
effective daytoday management of risk sits within the business 
management is responsible for setting the right tone at the top and 
establishing a culture where employees are expected to be risk aware 
control minded and to ‘do the right thing’
the grmc is a committee of the group management board gmb  
it is chaired by the chief executive and comprises the full membership 
of the gmb supported by key members of the risk and control 
community the grmc has two key responsibilities 
• to ensure that an effective risk management process is operating 
throughout the organisation and
• to be involved actively in identifying assessing and managing those 
risks most significant to the longterm value of the organisation 
to discharge the first of these responsibilities the grmc selects key 
business areas and group functions for scrutiny and invites the mds 
and their risk champions individuals chosen by the mds to champion 
the process in their respective business areas to discuss how risk is 
managed risk process and the risks identified ‘bottom up’ as a result 
risk content it also receives regular presentations from the director 
of group audit services on the ongoing level of engagement and 
effectiveness of each sectorsource market in relation to the risk 
management process specific areas of strength and weakness by 
individual business area and an analysis of the ‘bottom up’ risks 
reported along with any developing themes t op ic s	p re se nte d	an d	de ba te d	
a t 	 the 	 grm c	dur in g	 the 	 ye ar
s t r a te g i c 	 	
g o v e r n a n c e
o pe r a ti o n a l	 	
g o v e r n a n c e
1 s t 	l i n e 	 	
o f	d e f e n c e
2n d	l i n e 	 	
o f	d e f e n c e
3rd 	 l in e 	 	
o f	d e f e n c e
g ro u p 	 au d i t	 s e rv i c e s 	 – 	i n d e pe n d e n t 	a s s u r a n c e
g ro u p 	r i s k	m a n ag e m e n t 	a n d	 c o m pl i a n c e 	
f u n c t i o n s	 – 	o v e r s i g h t
a  
nomination 
committee
b  
remuneration 
committee
c  
audit  
committee
b oa r d 	 – 	 d i r e c t i o n
gro u p 	 ma n ag e m e n t 	 b oar d
a  
group risk 
management 
committee
b  
capability 
committee
c  
investment 
committee
d  
projects 
committee
m a n ag e m e n t	 – 	e x e c u t i o n
erm framework  maturity 44
industry regulations 6
internal controls 6
projects 19
strategy 12
policies  charters 13
43 tui travel p l c annu al repo rt  accounts 2014
	
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shareholder information
tt27  ar 2014  10102014  proof 1
risk governance framework
the majority of grmc time however is reserved for the identification 
assessment and management of principal risks to the group strategy 
individual members of the grmc are accountable for specific principal 
risks and for the quality of risk  control summaries which set out the 
key controls on which reliance is placed and the further actions that 
are required as necessary to achieve targeted risk level these risks 
controls and targets are reviewed and approved at the grmc and then 
communicated ‘top down’ to the wider business to ensure that risks 
are managed within these levels through the organisation the grmc 
also recognises the natural cycle of risk exposure the interaction of 
individual risks and the extent to which individual risks may be offset 
through natural hedging or amplified through specific risk combinations
f e e d b ack 	 t o 	 th e 	 b o a r d
the director of group audit services provides an update to the audit 
committee and the board on how risk is being managed across the 
organisation risk process and the executive directors provide an 
update to the board twice a year on the key risks under consideration 
risk content this feedback is reviewed and debated by the board to 
ensure management has understood the risks and that mitigation fits 
within its overall risk appetite where there is misalignment between 
the risk profile and the risk appetite ie management are taking too 
much or too little risk relative to the strategic objectives the board 
seeks to ensure that appropriate corrective action is being taken 
during the year the board reviewed the completeness of the principal 
risks debated risk appetite and management’s alignment with it and 
raised issues relating to the transparency and consistency of ‘bottom 
up’ risks reported 
a d d i ti o na l 	 c o m m i tt e es 	 o f 	 th e 	 g m b
the following committees form part of the overall risk 
governance framework
the capability committee supports the risk governance process by 
assessing the group’s current capability and competence against its 
future needs in the achievement of its strategic objectives 
the investment committee ensures that risk and reward is closely 
scrutinised prior to any acquisitions capital expenditure and 
major investments 
the projects committee oversees crossgroup projects and ensures 
that interdependencies and risks both upside and downside are 
understood fully and guidance provided as appropriate
r isk 	 ma na g e m e n t 	 p r o c ess
the group risk function supports the risk management process by 
providing guidance support and challenge to management whilst acting 
as the central point for coordinating monitoring and reporting on risk 
across the group
the group risk function applies a consistent risk methodology across 
all key areas of the business this is underpinned by risk and control 
software which reinforces clarity of language visibility of risks controls 
and actions and accountability of ownership although the process 
of risk identification assessment and response is continuous it is 
consolidated reported and reviewed by senior management on a 
quarterly basis 
this is considered by the grmc alongside the group’s principal risks 
new risks are added to the group risk profile if deemed to be of 
a significant nature so that the ongoing status and the progression 
of key action plans can be managed in line with the group’s targets 
and expectations u n d e r s t a n d 	 mar k e t
e x te r n a l
less predictablecontrollable
i nte r n a l
more predictablecontrollable
t oda y
t o m o r row
c o n t ro l	  	m o n i t o r
a da p t 	s t r a t e g y
ma n ag e 	 c h a n g e
g lo b a l	 	
f i n a nci a l	 	
f a c t o r s
c o n s u m e r	
de ma n d
bu s i ne s s	
i m pr o ve m e nt 	
opp or t u ni t ie s
trade
relations
antibribery  
corruption
fuel  fx 
volatility
airline
regulatory
antimoney
laundering
supplier
risk
ne w	marke t s 	
acq ui siti on s	 	
in ve s t m e nt s
c o n s u m e r	
pr e f e r e n c e s	
 	de si re s
sustainable 
development
big data
digital devices
unique 
 diverse
product
multichannel 
distribution
new 
concepts
tax
customer 
engagement 
 retention
t a l e nt 	
ma n a g e m e n t
liquidity  
 cash
management
hs
financial 
control   
reporting
business 
interruption 
continuity
staff 
engagement   
empowerment
recruitment 
 retention
data 
security
insightful 
mi
competence 
 capability
controlled 
distribution
people 
change
business 
transformation
digital 
workplace
transition
organisational
restructure
economies 
of scale
e x t e r n a l	 	
r e gu l a t or y
inte r n a l	
ope r a t i o n s
s t r a t e g i c 	
 	 e m e rg i n g
b u s i ne s s
ch a n g e
t he
e n te r pr i s e
p ol i t i c a l 	 v ol a t i l i t y 
n a t ur al	c a t a st rophe
r e gu l a t or y 	
e n v i r o n m e n t
principal risks other risks
44 tui travel p l c annu al repo rt  accounts 2014
stra te gic re por t
tt27  ar 2014  10102014  proof 1
what are the risks principal risks
continued
risk landscape 45 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  10102014  proof 1
r i s k	
c a t e g or y
s t r a t e g i c
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
c o n s u me r	
p r e f e r e nc e s	 	
 	 de si re s
s t r a te g ic 	 	
d r ive r s
c o nte nt
b r a n ds 	 	
d i s t r i bu t i o n
t e c hn o lo g y
g r ow t h 	 	
 	 sc ale
pe o pl e
c o nte x t
price product and digital solutions play a key part in the 
consumer’s decisionmaking process consumer research and 
booking preferences are constantly evolving from offline to online 
and from desktop to mobile and tablet with booking moving closer 
to the time of travel
r i sk
we do not identify or respond quickly enough to changes 
in consumer preferences and do not keep up with latest 
technological developments
p o te nti a l 	 i mp a c t
our market positions come under pressure resulting in lower short 
to mediumterm growth rates and reduced margins
a p p e tite 	 p r o a c ti v e 
we are passionate about anticipating customer desires and are 
not afraid to be innovative and make brave decisions to ensure 
we remain relevant to our consumer preferences 
ne t	 ri sk	 mo ve me nt
“we have made significant progress to enhance our offering of 
unique endtoend experiences to our consumers this however 
has been offset by evolving consumer desires  expectations 
this inspires us to invest in innovation and strive continuously to 
be one step ahead”
ke y	 r i sk 	in dic a t or s 	inc lude	
• competitor activity
• customer net promoter scores
• brand performance
g r ou p  w i d e
• monitoring closely changes in consumer preferences and 
sentiment within the wider context of our industry and the 
different sources of influence on our customers’ spending
• developing new concepts and services which are unique 
diverse and value adding
• maintaining our focus on being an ‘online driven’ business and 
tracking the gap both upside and downside between our offer 
and the competition’s to inform effective decisionmaking 
t o ur 	 op e r a t or
• leveraging our one mainstream structure to enhance the 
portfolio of unique and exclusive products designed to increase 
our competitive advantage
• reviewing continuously our existing concept portfolio adapting 
where appropriate for different source markets and opening 
new destinations
• investing in a commom platform across one mainstream that 
will provide our customers with real time personalised and 
consistent services across any of the channels in which they 
choose to interact with us
• developing the strong brand portfolio of tailormade products 
and services within our specialist businesses and reviewing 
opportunities to extend it into new markets 
• focusing on being online throughout the whole of the customer 
journey  from inspiration to booking to the holiday itself as 
well as returning and sharing experiences through social media
• launching a range of successful applications eg the tui digital 
assistant app and crystal ski explorer
o n l i ne 	 a c c o m mod a t i o n
• reviewing closely our offer to ensure that we have a wide variety 
of product in terms of quality destination and budget
• developing continuously our digital content ensuring it is clear 
relevant and well presented in order to capture the market and 
ensure customer loyalty and repeat customers
• updating and upgrading it platforms to ensure our wholesaler 
and ota businesses are supported by effective and efficient 
systems improving the service delivery to our global customers 
that underpins our growth strategy
see ‘our key strategic drivers’ page 14
principal risk table 
the ordering in the table below does not seek to provide an indication of the relative significance of the risks nor is it a complete list of all the risks 
to which the group is exposed it does however highlight the change in the group’s risk profile relative to the changes experienced within the 
environment in which we operate net risk movement and in consideration of its willingness to take on risk risk appetite 46 tui travel p l c annu al repo rt  accounts 2014
stra te gic re por t
tt27  ar 2014  10102014  proof 1
r i s k	
c a t e g or y
s t r a t e g i c
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
b u si ne s s	
i mp r o v e me n t	
op p or t u ni t ie s
s t r a te g ic 	 	
d r ive r s
c o nte nt
b r a n ds 	 	
d i s t r i bu t i o n
t e c hn o lo g y
g r ow t h 	 	
 	 sc ale
pe o pl e
c o nte x t
the group is heavily reliant on legacy systems processes 
and structures which in some cases are outdated complex 
and inefficient
r i sk
we do not address successfully the legacy inefficiencies and 
complexities of our existing infrastructure
p o te nti a l 	 i mp a c t
we incur higher costs due to inefficiencies impacting our ability to 
optimise business performance and provide a valueadded service 
to our consumers
a p p e tite 	 p r o a c ti v e 
we are passionate about innovation and adding value to our 
customers and look actively for opportunities that might 
strengthen our strategic and tactical agility 
ne t	 ri sk	 mo ve me nt 	
“we are constantly seeking new opportunities to add value  
to all our stakeholders supported by a strengthened project 
management approach ensuring we optimise our ability to  
deliver maximum benefits”
ke y	 r i sk 	in dic a t or s 	inc lude
• project status 
• common platforms vs local
• coso maturity by business
g r ou p  w i d e
• driving stronger and more costeffective relationships with  
key service providers through better coordination of key 
procurement activities 
• strengthening our internal control environment through the 
continued rollout of the coso control framework across 
financial reporting compliance and operational categories  
of control through the establishment of group finance legal  
 regulatory and it compliance 
• strengthening our project and programme management 
competency and capability to deliver change on time on cost 
and on scope
• strengthening business continuity management in our various 
businesses to build resilience into our operations 
t o ur 	 op e r a t or
• continuing to build on the foundations of one mainstream 
which implemented last year allows us to take full advantage 
of our scale and buying power and delivers more effective 
operations without compromising customer experience
• increasing controlled distribution thereby reducing third party 
costs and enabling a direct relationship with our customers
• continuing to expand our portfolio of new concept stores 
which incorporates digital elements and inspiration in 
recognition of the fact that retail remains an important part  
of the booking process
• focusing on developing a personalised service through 
implementing a system ‘connect’ which allows customer 
information to be shared across multiple booking platforms
• maximising technological efficiencies through the consolidation 
of finance and reservation systems across multiple source 
markets and interlinking systems to ensure a seamless 
customer experience while also generating more robust and 
reliable management information
• continuing to deploy the dreamliner across one mainstream 
giving our customers a superior flight experience and allowing 
us to offer new longhaul destinations and more capacity to 
existing ones
o n l i ne 	 a c c o m mod a t i o n
• continuing our it transformation programme in our wholesaler 
and ota businesses to improve overall competitiveness and 
facilitate the rapid integration of new brands whether acquired 
or organically developed
• progressing our strategy of consolidating our marketleading 
position by further expanding in existing destinations whilst 
focusing on our development in both new source markets as 
well as new destinations 
• extending our bedsonline customer base accommodation 
provider through effective partnering with easyjet
• planning to drive superior growth by developing new 
distribution channels and new customer segments in  
this market
see ‘our key strategic drivers’ page 14
principal risk table
continued 47 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  10102014  proof 1
see ‘our key strategic drivers’ page 14
r i s k	
c a t e g or y
s t r a t e g i c
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
n e w	 marke t s	
a cq ui siti on s	 	
i nve s t me n t s
s t r a te g ic 	 	
d r ive r s
c o nte nt
b r a n ds 	 	
d i s t r i bu t i o n
t e c hn o lo g y
g r ow t h 	 	
 	 sc ale
pe o pl e
c o nte x t
the group continues to look into new markets as the 
traditional mainstream markets mature specialist businesses 
online accommodation and new markets represent a significant 
opportunity to participate in longerterm travel growth trends 
and have higher growth potential
r i sk
we do not maximise potential growth opportunities to deliver 
results in new markets due to lack of investment appetite short 
termism and difficulty in leveraging group assets and integrating 
operations and systems
p o te nti a l 	 i mp a c t
our potential longterm growth rates and margins are impacted 
with cash flows lower than anticipated and significant absorption  
of resource
a pp e t it e 	  op e n 
we are willing to consider all markets acquisitions and investments 
to drive longterm sustainable growth value
ne t	 ri sk	 mo ve me nt
“in light of the ongoing challenging trading environment in russia 
and ukraine we took the decision to make an impairment of  
£28m against loans to our joint venture in the fourth quarter”
ke y	 r i sk 	in dic a t or s 	inc lude
• market analysis
• partner assessment
• integration post acquisition
g r ou p  w i d e
• coordinating ma activity at a group level to identify and 
optimise the best growth opportunities available to the business
t o ur 	 op e r a t or
• developing and delivering the participation strategy for both 
outbound and domestic tour operations in new markets to 
create longterm growth and improved shareholder value 
• strengthening our position in the indian market through 
increased shareholding in le passage to india inbound  
and mice destination management services and tui india 
domestic and outbound tour operator
o n l i ne 	 a c c o m mod a t i o n
• reviewing continuously our strategy for targeting emerging 
markets in particular in africa asia and latin america 
• developing our presence in the asia pacific with asiarooms
com and in brazil with malaprontacom and attracting new 
customers through increased brand awareness 48 tui travel p l c annu al r epo rt  ac counts 2014
stra te gic re por t
tt27  ar 2014  10102014  proof 1
principal risk table
continued
risk 
category o pe ratio na l
nature a nd 
e xte nt o f risk 
mitigatio n
gl oba l 
f i na nc ia l 
f actors s tr ategic  
drivers g r owth  
 s ca le c o ntext geopolitical events continue to highlight the inherent risks within 
travel and tourism whilst the ongoing banking sector recovery and 
the introduction of basel iii have the potential to impact longterm 
financing availability the crossborder nature of trading exposes our 
business to fluctuations in exchange rates and complex tax laws 
in addition a significant proportion of operating expenses are in 
relation to aircraft fuel which is also subject to fluctuation
risk we do not manage adequately the volatility of exchange rates and 
fuel prices or other rising input costs we face an increase in tax 
authorities taking a more strident tax approach in order to fund 
local fiscal deficits and difficulties in securing additional facilities  
if needed and at a reasonable cost
po te ntia l im pa ct we suffer increased costs which reduce demand resulting in lower 
revenue andor margins we face a negative impact on cash flow 
lengthy tax litigation processes and possible reduction in the 
group’s aftertax earnings
a ppe tite c autious 
we are careful to ensure as stable and as predictable an environment 
as possible in relation to fx and fuel tax funding and liquidity
ne t r i sk m o veme nt “we continue to manage our global business through challenging 
economic times this has given us the opportunity to build resilience 
in to our business and strengthen our daytoday operations”
key risk i nd icators i nc lu de • compliance to policy
• market intelligence
• media exposure
g r ou pwide
• ensuring that hedging cover for fuel and foreign currency is 
taken out ahead of source market customer booking profiles  
to provide certainty of input costs when planning pricing 
and capacity 
• tracking the foreign exchange and fuel markets to ensure  
the most uptodate market intelligence and the ongoing 
appropriateness of our hedging policies
• maintaining highquality relationships with tax authorities 
through regular communication keeping them informed of  
the commercial reality of our business operations 
• monitoring our funding and liquidity position to ensure key 
facilities are refinanced well ahead of maturity we recognise 
the impact that different aspects of our operations can have on 
our access to financial facilities and seek to ensure that these 
are appropriately understood and controlled during the year 
we refinanced our banking facilities with the signing of a new 
£14bn bank credit facility
• maintaining highquality relationships with the group’s key 
financiers and monitoring compliance with the covenants 
contained within our financing facilities
risk 
category o pe ratio na l
nature a nd 
e xte nt o f risk 
mitigatio n
c o ns umer 
d e ma nd s tr ategic  
drivers c o nte nt b ra nds  
d i stributio n
t e ch no lo gy g r owth  
 s ca le peo ple c o ntext spending on travel and tourism is discretionary and price sensitive 
the economic outlook remains uncertain with different source 
markets at different points in the recovery cycle consumers are 
also waiting longer to book their trips in order to assess their 
financial situation
risk we do not respond successfully to changes in consumer demand 
andor the consumer preference for late booking
po te ntia l im pa ct our shortterm growth rates and margins are lower than anticipated
a ppetite o pe n
we are willing to consider options which add value to our customers 
and secure and improve the flexibility resilience and attractiveness 
of our business model
ne t r i sk m o veme nt “we are operating in an increasingly dynamic environment 
demand for leisure travel remains strong and as our main 
markets recover from economic stagnation we are well positioned 
to maintain our marketleading positions and grow further”
key risk i nd icators i nc lu de • consumer sentiment
• gdp growth
• competitor monitoring
g r ou pwide
• maintaining our focus on creating lifetime relationships 
with our customers through great service and fantastic 
lifetime experiences
• leveraging our scale flexiblility and exclusivity in order 
to deliver sustainable profitable growth and outperform 
the market
tour o pe rator • assessing our product offering in the context of the 
confidence levels and cost of living pressures being 
experienced by our customers 
• exploiting the flexibility and resilience of our business model 
and the functionality of our sophisticated capacity and yield 
management systems in order to drive margins and profits 
growth by ensuring that capacity is closely aligned to forecasts 
o nli ne accommodatio n
• continuing to exploit our model which involves minimum 
commitment risk and operates extremely well in relation to 
the online lates market 49 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  10102014  proof 1
see ‘our key strategic drivers’ page 14
r i s k	
c a t e g or y
ope r a t i o n a l
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
p ol i t ic a l	
v ol a t i l i t y  	
na t ur al	
c a t a s t r op he s	
an d	 out bre ak s
s t r a te g ic 	 	
d r ive r s
c o nte nt
g r ow t h 	 	
 	 sc ale
c o nte x t
providers of holiday and travel services are exposed to the inherent 
risk of domestic andor international incidents affecting some 
countriesdestinations within their operations
r i sk
we are not able to respond efficiently and effectively to 
largescale events 
p o te nti a l 	 i m p a c t
we suffer significant operational disruption in our source markets 
and destinations leading to significant losses holiday cancellations 
repatriation of customers and a general decline in consumer demand 
and increase in our insurance premiums
a p p e tite 	  c a u ti o us 
we are careful to ensure we have the appropriate levels of flexibility  
 resilience in our business model to withstand shocks to our 
operations and ultimately our customers
ne t	 ri sk	 mo ve ment
“we operate in a market segment that as a matter of course  
has to weather external events our strong flexible and resilient 
business model enables us to continue with minimal disruption  
to our daytoday activities and customers”
ke y	 r i sk 	in dic a t ors
• local intelligence
• passengers by destination
• media coverage
g r ou p  w i d e
• maintaining a balanced destination mix to minimise 
concentration and having flexible supplier agreements in 
order to enable capacity to be switched as required
• leveraging our unique products and strong brand to drive 
earlier booking giving us more time to react to external events
• reviewing trading outlooks destinationbydestination with the 
management team of each business area during our regular 
business review meetings and developing operational 
contingency as appropriate 
• maintaining strong relationships with local tourism bodies 
travel and aviation industry associations actively monitoring 
the political situation in volatile destinations and acting upon 
security intelligence advice as it is received
• minimising the impact of negative events in our source markets 
and destinations by ensuring the effective execution of our 
established incident management and emergency response 
plans and the deployment of our experienced leadership teams 
to support and repatriate stranded customers
• tracking hotel commitments and prepayments on a timely and 
sufficiently granular basis to manage our financial exposure to 
justifiable levels
• promoting the benefits of travelling with a recognised and 
leading tour operator to increase consumer confidence and 
peace of mind
r i s k	
c a t e g or y
ope r a t i o n a l
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
tal ent 	
m a n a g e me n t 	
s t r a te g ic 	 	
d r ive r s
t e c hn o lo g y
pe o pl e
c o nte x t
the group’s success depends on its ability to retain key 
management and it relies on having good relations with 
its colleagues
r i sk
we are unable to attract and retain talent build future 
leadership capability and maintain the commitment and trust 
of our employees
p o te nti a l 	 i mp a c t
we do not maximise our operating results and 
financial performance
a pp e t it e 	  op e n 
we are willing to invest in the appropriate levels of competence  
and capability to drive the future success of our business
ne t	 ri sk	 mo ve me nt
“our people are a key differentiator for tui travel they set us 
apart from our competition this year our focus in hr has been  
on developing a consistent effortless and engaging experience for 
our colleagues which in turn will be transferred to our customers”
ke y	 r i sk 	in dic a t or s
• your voice survey results
• talent gap analysis
• employed vs contracted ratio
g r ou p  w i d e
• assessing continuously our organisational competence and 
capability against that required to maximise current and future 
shareholder value 
• ensuring succession plans are in place for all identified business 
critical roles in particular emergency successors for all source 
market and sector board roles and that these plans are 
reviewed every six months 
• using our groupwide leadership framework including our 
your voice survey to engage and empower people whilst 
delivering results and managing performance
• continuing to attract high quality talent from across the world 
in to our international graduate leadership programme and 
local graduate schemes
• enhancing continuously our existing development programmes 
for senior managers and executives and adding new programmes 
for junior managers
• driving high performance and engagement through our 
performance review development plans and career 
planning process 
• extending our ‘risk  control and doing the right thing’ objectives 
down through the organisation as part of developing a strong 
culture of effective risk governance
• focusing on enabling our people digitally in support of our 
commitment to be an onlinedriven company  50 tui travel p l c annu al repo rt  accounts 2014
stra te gic re por t
tt27  ar 2014  10102014  proof 1
principal risk table
continued
see ‘our key strategic drivers’ page 14
r i s k	
c a t e g or y
c om pl i a nce
n a t u r e 	a n d	
e x t e n t 	o f	r i s k
	 	
m i t i g a t i o n
r e gu l a t or y	
e nvi r o n m e n t
s t r a te g ic 	 	
d r ive r s
c o nte nt
g r ow t h 	 	
 	 sc ale
c o nte x t
industries in which the group operates are highly regulated 
particularly in relation to consumer protection aviation and 
the environment
r i sk
we do not establish an effective system of internal control 
to ensure we operate in compliance with all legal and 
regulatory requirements
p o te nti a l 	 i mp a c t
we suffer negative impact which damages our reputation  
results in reduced revenue andor higher input costs
a p p e tite 	  a d v e r se 
we have a low tolerance to instances of noncompliance and  
are careful to be a good corporate citizen in all of the countries  
in which we operate
ne t	 ri sk	 mo ve me nt
“we have engaged consistently with the european commission 
the european parliament and with member states as they have 
considered these reforms air passenger rights and package 
travel directive and will continue to do so over the coming  
12 months”
ke y	 r i sk 	in dic a t or s
• market intelligence
• propensity to claim
• media exposure
g r ou p  w i d e
• addressing issues affecting the industry and our customers 
through our political and regulatory affairs team who engage 
with regulators and governments to help ensure legislation that 
is fit for purpose properly balances the interests of industry 
and consumers and treats all industry players fairly
• lobbying for greater clarity and simplification of the package 
travel directive to ensure a level playing field across the 
industry for all those involved in putting together more than 
one element of a holiday flight transportation 
accommodation excursions etc
• maintaining a comprehensive antibribery  corruption abc 
training programme across the group ito raise awareness of 
the provisions of the bribery act 2010 in order to prevent 
bribery and corruption in the countries in which we operate 
• monitoring the adequacy and effectiveness of the abc 
procedures and measures established in order to prevent 
bribery and corruption in the countries in which we operate 
• delivering a sustainability strategy across the group to develop 
more sustainable holidays and to reduce the environmental 
impact at each stage of our customer’s journey a dedicated 
sustainable development team supports the group and works 
closely with business management see our sustainable 
development section on page 24
• maintaining our leadership position on carbon reporting and 
performance ranked joint first place in the ftse 350 for 
climate change reporting and transparency in the 2014 carbon 
disclosure project operating the most fuel efficient airlines in 
europe – reducing per passenger carbon emissions by 103 
over the last six years 51 tui travel p l c annu al repo rt  accounts 2014
	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
health  safety
incident rates across the business are collated and reviewed to ensure 
any trends are identified and actions are taken to resolve issues
compliance with the appropriate national andor state law remains a 
priority amongst all businesses regardless of location much of the hs 
law within europe stems from the same source although it has been 
interpreted slightly differently by national governments and therefore 
there is much commonality in the procedures being included in safety 
management systems
c ust o me r 	 sa fet y
each sector continues to have responsibility for ensuring the hs of 
their customers this is achieved by having sound hs practices and 
robust safety management systems embedded within each business 
the mainstream sector continues to move forward with the ‘one 
mainstream’ concept and through the one mainstream hs working 
group has established the foundations for closer cooperation greater 
consistency common policies systems and processes across all 
mainstream source markets the hs working group meets regularly 
and is made up of colleagues from every source market with hs 
responsibilities together with the head of ghscd 
each mainstream source market continues to maintain its own dedicated 
hs team of people each of whom has specific hs duties 
some developments which took place in mainstream hs during 2014 
are detailed below
• the creation of a uk  ireland mainstream overseas hs 
management board to provide a greater degree of governance  
and oversight of uki specific hs management
• the expansion of the tui france hs team which has allowed a full 
review of all the club marmara properties and the development of 
tui france’s safety management system and
• the application of hs resource within tui germany specifically 
dedicated to the identification and eradication of swimming pool 
entrapment issues
the specialist  activity sector continues to operate a dedicated hs 
function based in the uk and overseas working with all sas divisions to 
establish and maintain safety management systems under the guidance 
of ghscd each sas business is ‘risk profiled’ which facilitates the 
provision of hs responses tailored to divisional and business unit risks 
suppliers of accommodation transport and excursionsactivities are 
assessed using both physical inspections and selfassessments generated 
from the ‘sure2care’ inhouse webbased duediligence system which 
now hosts in excess of 37000 completed hs assessments
within the accommodation  destination sector ad the responsibility 
for hs is at the divisional level 
hotelbeds continues to deploy sure2care – managed from the central 
palmabased headquarters with each region responsible for delivery 
against specific sure2care targets the hotelbeds’ steering committee 
meets regularly to agree responses to any hs related issues which 
are identified
within ad intercruises continues to deploy and develop its safety 
management system and is increasingly utilising sure2care for supplier 
assessments as part of its contract with mainstream for the provision 
of activityexcursion and transport services
the strategic report was approved by a duly authorised committee of 
the board of directors on 3 december 2014 and signed on its behalf by 
p eter 	 lon g
chief executive
3 december 2014
the health and safety hs of customers and employees remains  
a key focus for the group 
the group businesses liaise and cooperate with each other to ensure 
that best practice is followed and their decisions are underpinned by the 
tui travel plc hs policy statement signed by the chief executive 
peter long primary responsibility for the management of hs remains 
with the individual businesses within the group but assistance is available 
from the group hs compliance department further assurance that 
sound hs management systems are being implemented is provided 
by group audit services
the group airlines continue to work together to comply with and improve 
their safety management systems in each group airline there are clearly 
identified and accountable senior managers who are responsible 
for safety in the key areas of flight operations training and ground 
operationsengineering there is also a riskbased safety management 
system which engages the whole airline at all levels in safety 
management the operations of the airlines are regulated by the 
european aviation safety agency easa and by the applicable 
national aviation body eg in the united kingdom the civil aviation 
authority the national aviation authorities regularly inspect and 
audit each airline’s safety management system
20132014 saw the first full year’s operation of the group hs 
compliance department ghscd and good progress has been 
made with regard to
• monitoring hs management systems across the group
• collating relevant data and establishing mechanisms for regular 
reporting against established key performance indicators kpis  
and key risk indicators kris
• documenting and communicating to all businesses minimum 
group hs management system requirements and associated 
hs standards 
• providing training in hs incident reporting and risk assessments 
• providing guidance advice and support to operating businesses and
• investigating fatalities serious incidents and near misses
groupwide incident thresholds have been established and all 
nonnaturalcause fatalities and all yellow orange and red incidents 
are automatically investigated trigger points have been set for each 
incident level colour band which if reached will result in a full review 
of hs management processes
e mp lo y e e 	 sa fet y
our employees face hazards that are both common and unique to their 
particular business on a worldwide basis effective identification and 
control is achieved through a robust risk assessment procedure risk 
assessment is a key element of the safety management systems being 
developed by our businesses 
ghscd is now working in collaboration with dedicated employee hs 
resource within a number of geographical locations – including spain 
france germany the nordics and north america elements of mature 
safety management systems are shared where appropriate amongst 
those businesses when developing their own systems in this way 
practical procedures are put in place to assist and benefit the business 
promoting a positive safety culture whilst allowing a consistent 
groupwide approach
the group hs induction programme ‘safety in your workplace’ which 
provides a baseline of hs knowledge for all employees is currently 
being revised and updated the induction programme continues to be 
a key element of the group’s commitment to good hs practice 52 tui travel p l c annu al repo rt  accounts 2014
bus iness and finan cial revi ew tt 27  ar 2014  xx082014  design
underlying results
1
statutory results
£m 2014 2013
3
c h a n g e 	  2014 2013
3
revenue 14619 15051 3 14619 15051
operating profit 612 589 4 499 297
profit before tax 475 461 3 362 169
free cash flow 403 427 6 403 427
basic eps pence 291 301 3 164 46
dividend per share pence 2455
4
135 2455
4
135
1  underlying operating profit excludes separately disclosed items acquisition related expenses impairment of goodwill and financial assets 
and interest and taxation of results of the group’s joint ventures and associates
2  constant currency basis assumes that constant foreign exchange translation rates are applied to the underlying operating result at prior 
year rates
3  comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’
4  dividend of 205p payable on completion of the merger this includes 105p in lieu of a final dividend
group performance 
year ended 30 september
group revenue decreased by 3 from the prior year to £14619m 
2013 £15051m this result was driven by adverse foreign currency 
translation impact the main drivers of the yearonyear improvement 
in underlying operating profit are as follows
£m
201 3 	 u n d e r l y ing 	 op e r at ing 	 p ro fi t 589
mainstream trading 47
non repeat of french contract provision 11
accommodation wholesaler 10
business improvement 12
other includes emerging markets and inbound services 15
201 4 	 u n d e r l y ing 	 op e r at ing 	 p ro fi t 	 at 	 c on s t an t 	 c u r re n c y 654
fx translation 42
201 4 	 u n d e r l y ing 	 op e r at ing 	 p ro fi t 612
underlying operating profit improved by £65m to £654m in 2014  
on a constant currency basis
2

the improvement in underlying operating profit was driven by strong 
performances in the uk germany and netherlands as well as a halving 
of french tour operator losses these positive results were partly offset 
by weakness in the nordics trading in the first half of the year and by 
the performances of russia and ukraine
a reconciliation of underlying operating profit to statutory operating 
profit is as follows
year ended 30 september
2014	
£m
2013
£m
un d e r l y ing 	 op e r at ing 	 p ro fi t 	 612 589 
separately disclosed items 1 24
acquisition related expenses 67 65
impairment of goodwill – 188
impairment of financial assets 29 – 
taxation on profits and interest of joint 
ventures and associates 18 15
s t at u t o r y 	 o p e r at ing 	 p ro fi t 499 297 
william 	 w a g g ot t 	
chief financial officer
£6 5 4m
u n d e r l y in g 	 o p e ratin g	
pr ofit 	 f or 	 20 1 4 	 on 	 a 	
consta nt 	 curr ency 	 basis
2
 11 	
incr ease 	 in 	 underlyin g	
operatin g 	 pr ofit 	 on 	 a 	
constant 	 curr ency 	 basis
2 53 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
	
b u s i n e s s	a n d	f i n a n c i a l	r e v i e w
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
a c q ui s i ti ons
acquisitions were made in the year for a total investment value of 
£31m the main acquisition made during the year on 20 december 
2013 was a further 41 of the voting equity shares of le passage to 
india tours and travels private limited ‘lpti’ a tour operator and 
destination management company incorporated in india the group 
previously owned 50 of lpti and accounted for this as a joint 
venture the total consideration for this step acquisition was £20m 
including £10m of noncash consideration for the group’s share of 
lpti that it previously owned
n et 	 fi na n ci a l 	 e x p e nses
net financial expenses have increased by £9m to £137m the increase 
was primarily due to a number of oneoff items totalling £19m 
the largest of which were the acceleration of the amortisation of 
the old revolving credit facility and the impact of revaluation of a 
put option for an investment in a tour operator in germany these 
oneoff charges were partially offset by a £10m reduction in interest 
due to the conversion of the £350m convertible bond at the end of 
the financial year
se pa ra t e l y 	 d iscl o se d 	 i t e ms 	 s d i s 
separately disclosed items net to a £1m credit in the year 2013 £24m 
expense the following table provides a breakdown of these items
2014
£m
2013
£m
restructuring 37 54
pension credit 67 25
vat regularisation 41 
other 12 5
t o t al 	 sdi s 1 24
the separately disclosed items expense includes the following items
• £14m in germany arising from the restructure of support functions 
and the airline engineering department
• £10m in france from the ongoing restructure of both the tour 
operator and the airline
• restructuring charge of £4m in the accommodation  destinations 
sector and £4m in marine 
• £67m pension credit primarily relating to two pension transactions 
which completed in the uk 
• £41m charge from regularising the vat position of hotelbeds 
product slu registered in spain
further information is included within note 4
i m pa i r m e n t 	 o f 	 fi na n ci a l 	 assets
given the ongoing challenging trading environment for tour operators 
located in the russian and ukrainian source markets an impairment  
of £28m was booked against loans to our joint venture entity this 
nonunderlying item is included within ‘impairment of financial assets’ 
further information is included within note 8
t axati on
the underlying effective rate of taxation for the year ended 
30 september 2014 is calculated based on the underlying profit before 
tax excluding separately disclosed items acquisition related expenses 
and impairment charges and equates to 31 2013 27 the increase 
in the underlying effective tax rate is due to the effect of the geographical 
mix of profits 
the actual tax rate of 46 differs from the underlying effective tax rate 
primarily due to the write off of certain deferred tax assets totalling 
£26m where there is no longer sufficient certainty of the timing any 
benefits that might arise in the future
during the year the group paid £3m of uk cash corporation tax  
and a further £122m of cash corporate taxes in other jurisdictions 
£61 2m
4  	 incr ease 	 in	
u n d e r l y in g 	 o p e ratin g	
pr ofit 	 f or 	 20 1 4
2013 
underlying
mainstream 
trading
nonrepeat 
of prior 
year french 
contract 
write offs
business 
improve’t
programme
accom
wholesaler
other 2014
constant 
currency
fx 2014 
underlying
£589m
£47m
£11m
£12m
£10m
£15m
£654m £42m
£612m
11
yoy
growth
gr oup 	 op e r a tin g 	 p r ofit	 br i dge
  other consists of emerging markets £7m specialist  activity £4m inbound services £3m and 
central £1m 54 tui travel p l c annu al repo rt  accounts 2014
bus iness and finan cial revi ew tt 27  ar 2014  xx082014  design
e a r n i n gs 	 p e r 	 sha r e
underlying basic earnings per share was 291p 2013 restated 301p 
higher underlying operating profits at constant currency rates were 
offset by the impact of foreign exchange translation an increased 
interest charge and the higher underlying effective tax rate statutory 
basic earnings per share increased to 164p 2013 restated 46p 
reflecting lower separately disclosed items in the year
d i v ide n ds
on 13 may 2014 the board recommended an interim dividend of  
405p per share 2013 375p which was paid on 3 october 2014
on 15 september 2014 as part of the rule 27 announcement the 
directors announced that the company will immediately prior to 
completion of the merger with tui ag declare and pay a second 
interim dividend of 205p per share which includes a 105p dividend 
per share in lieu of a final dividend for the financial year ended 
30 september 2014 this second interim dividend will be payable to 
those shareholders on the register of members of the company at  
the scheme record time and will be paid prior to completion of the 
merger conditional on the court order having been granted at the 
scheme court hearing
c ash 	 a n d 	 l i q u i d i ty
the net cash position cash and cash equivalents less loans overdrafts 
and finance leases at 30 september 2014 was £371m 30 september 
2013 £2m this excludes restricted cash of £140m 2013 £145m 
further information is included in note 27 the £350m convertible 
bond saw 996 conversion into tui travel shares on maturity in 
october 2014 the number of shares issued as a result of the conversion 
was 99541916
the net cash position consisted of £1374m of cash and cash equivalents 
which includes restricted cash of £140m £89m of current interest
bearing loans and liabilities and £774m of noncurrent interestbearing 
loans and liabilities as at 30 september 2014 undrawn committed 
borrowing facilities totalled £1301m 2013 £1192m 
cashflow conversion is 85 of underlying profit before tax free cash 
flow generation was £403m 2013 £427m analysed as follows 
£m 2014
2014 
constant 
currency basis
2
2013
underlying operating profit 612 654 589
depreciation and amortisation 
included within underlying 
operating profit 205 211 202
underlying ebitda
1
817 865 791
working capital movement 116 161 172
capital expenditure  
net of disposals 172 180 217
pension funding 66 66 74
tax 125 129 110
interest 89 92 71
exceptional cash costs 78 82 64
free cash flow 403 477 427
1 earnings before interest tax depreciation and amortisation
2  constant currency basis assumes that constant foreign exchange translation rates  
are applied to the underlying operating result at prior year rates
we remain satisfied with our longterm debt funding and liquidity 
position this includes external bank revolving credit facilities totalling 
£1400m including £175m letter of credit facilities which mature 
in june 2018 and a £400m convertible bond due april 2017 
the external bank revolving facilities are used to manage the 
seasonality of the group’s cash flows and liquidity
we also have a mediumterm £150m bank credit facility in place to 
cover the october 2015 put option on the £400m convertible bond 
this facility matures in april 2016 
group performance 
year ended 30 september continued 55 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
	
b u s i n e s s	a n d	f i n a n c i a l	r e v i e w
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
our growth levers 
creating shareholder value
we are very pleased with our performance this year against our clearly 
defined strategic growth levers these drive improved profitability 
and free cash flow and therefore strong returns on investment 
this improvement will allow us to invest further in the future of our 
business which will benefit our customers colleagues and shareholders
1  	 d e l i v e r i n g 	 ma i nstr e a m 	 gr o w th
our mainstream business reported a record performance over the year 
with underlying operating profits growing by 13 to £581m on a 
constant currency basis 
we continue to leverage fully the strength of expertise across the sector 
and the scale of the group through our ‘one mainstream’ initiative 
this continues to evolve delivering greater benefits as one business 
across the strategic drivers of unique holidays direct distribution and 
operational efficiency
1  1 	 unique 	 holida ys 	 only 	 a va ilable 	 fr om 	t ui	t ra v el
unique holidays
our unique holidays form the backbone of our mainstream businesses 
and are exclusive to us unique holidays provide value added services 
and features which command a margin premium over commodity 
products this in turn leads to higher customer loyalty and an increase 
in repeat bookings unique holidays also book earlier enabling us to 
manage our capacity and yield more effectively due to our experience 
in designing and operating new concepts it is increasingly difficult for 
our competitors to replicate these holidays
new openings during the year included sensatori jamaica new couples 
product in croatia kalamota island and a new holiday village resort 
in ibiza we also opened six new blue star and five new blue couples 
concepts for the nordic market 2014 also marked the first season of 
our panmainstream suneoclub concept which saw openings in kos 
and djerba among others 
moving forward into next year we will see three new sensatori resorts 
in turkey cyprus aphrodite hills and ibiza and six new splash resorts 
in spain greece and north africa new sensimarcouples resorts are 
also planned for croatia tunisia portugal ibiza and bodrum 
sales of higher margin unique holidays during the year increased by 
three percentage points to 71 of mainstream holidays we have 
maintained our record customer satisfaction score of 79 for our 
three largest mainstream markets demand for unique holiday 
experiences continues to see strong growth and our customers are 
delighted with the holiday experiences we have designed for them  
we believe there is a direct correlation between unique holidays and 
strong customer service questionnaire scores that leads to increased 
customer retention
one mobility platform
our unique holiday offering gives us control over the endtoend 
customer experience and an opportunity to interact with our customers 
throughout their journey we have a clear digital strategy to enhance 
and deepen the relationship with our customers our awardwinning 
tui digital assistant tda app has now had over one million 
downloads across mainstream the digital assistant is a key driver of 
customer engagement at every stage of the customer journey 
we recently expanded the functionality of the tda by adding ‘search 
and book’ on the ipad for both the thomson and first choice apps  
in the uk this will be followed by the android and iphone launch in  
q1 2015 ‘search and book’ will be expanded to the nordics by the end 
of q1 2015 traffic from mobile devices including tablets continues  
to grow dramatically standing at 36 of overall visits in 2014 up from 
25 in the prior year in the uk the conversion rate on smartphones 
has increased by just under 50 
the use of a common app platform has enabled us to widen the roll 
out across a number of mainstream markets as well as the uk and 
germany the app is now live in the nordics austria and switzerland 
we will continue to leverage our one common mobility platform in 
2015 by launching the app across the rest of our mainstream markets 
the ongoing pipeline of features includes online checkin via the app 
expected by early 2015 flight extras travel documents and hotel 
checkin
flight experience
the flight experience is a key part of our unique holiday offering  
we continue to reshape the composition of our airline fleet to drive 
customer satisfaction and simplify the fleet to one shorthaul and one 
longhaul aircraft type having a modern costefficient and reliable 
fleet is strategically important to the group as well as operating the 
most carbon efficient airlines in europe
our boeing 7878 dreamliner fleet has proved to offer a much better 
experience to our customers the feedback we receive from those who 
fly on these aircraft is exceptional as at november 2014 we operate 
eight 787 dreamliner planes with a further five to be delivered by the 
end of fy15 we remain the only integrated tour operator to operate 
these aircraft and carried one million longhaul customers during 2014
the expanded 787 fleet has been a key driver of demand for longhaul 
travel enabling us to travel nonstop to destinations such as western 
mexico mauritius and thailand the range of longhaul destinations 
offered will be expanded during the coming year with direct flights  
to costa rica in november 2015 as well as other destinations being 
considered such as st lucia antigua vietnam and malaysia the 
longhaul opportunity complements our existing endtoend customer 
proposition which is difficult for lccs and scheduled carriers to replicate 
our ‘one airline’ cost saving initiative will see one structure across  
all of our mainstream markets this will enable one it platform and  
a joint perspective on crew planningaircraft deployment across our  
six airlines the leadership structure for this ‘one virtual airline’ is in 
place with all aviation operations now under one airline operations 
director cost savings will be driven by leveraging our scale across  
joint purchasing and a common supply chain being able to offer our 
customers the most advanced comfortable aircraft whether they are 
travelling with us to short or longhaul destinations while reducing  
our environmental impact will only strengthen our position 
1  2 	 distributed 	 dir ec tly 	 to 	 the 	 customer 	 – 	 gr o w th 	 fr om 	 online
direct distribution
our direct distribution channels are central to the group’s strategy by 
increasing the direct distribution of our holidays we lower distribution 
costs reduce the reliance on third party distributors and can build on 
our customer relationships our direct distribution mix improved by 
two percentage points over the year to 68 of mainstream sales with 
improvements in all three largest source markets the improvement in 
direct distribution was driven by the online channel which also increased 
by three percentage points in 2014 to 38 of mainstream sales during 
the year we generated £41bn of revenue online within our mainstream 
business reflecting 6 growth in online package bookings
one online platform
we continue to drive the online customer experience through 
investments made in our online platforms this helped to deliver 
a tangible increase in conversion as customers booking their holidays 
experienced an enhanced user interface including focused search 
functionality we expect that our other key source markets will join the 
uk and nordics on the same online platform during 2015 our websites 
are tablet and mobile optimised as our customers increasingly use their 
tablets and mobile devices to dream plan search and book with us 56 tui travel p l c annu al repo rt  accounts 2014
bus iness and finan cial revi ew tt 27  ar 2014  xx082014  design
next generation retail stores
we are currently operating 23 next generation stores in the uk following 
the first store that launched in bluewater late last year these stores 
combine personal advice and service with a rich digital experience that 
enables customers to build their perfect holiday features include a giant 
video wall to show off new video content an interactive map and table 
to help research holidays the ‘advice bar’ with staff on hand to answer 
questions and free instore wifi additional next generation stores will 
continue to open in the uk at high footfall sites we have also carried 
this concept into other key source markets and now operate two next 
generation stores in both germany and the netherlands 
1 3 	 le v era gin g 	 our 	 scale
as europe’s largest tour operator we leverage our scale across all source 
markets to consolidate our marketleading position and grow the number 
of customers travelling with us our one mainstream structure is in 
place and yielding tangible benefits the move from multiple online 
and backend platforms to one core platform will be a key driver of 
efficiencies going forward
we have market leading positions and brands across our portfolio 
the breadth of our brands offers our customers a wealth of holiday 
experiences this leading market position and scale means that our 
competition cannot easily replicate what we do there are significant 
barriers to entry in both our positioning and deeprooted relationships 
with hotel suppliers our scale also enables us to deliver synergy 
benefits through joint contracting and purchasing of accommodation 
and destination contracting
we maintain a target of overheads as a percentage of sales of less  
than 5 which was maintained in 2014
2 	 o r ga n i c 	 sp e ci a l ist 	  	 a cti v i ty 	 gr o w th
the specialist  activity sector offers a wide range of unique activity 
and experience based holidays to 13m customers from around the 
world we have marketleading positions in a number of specialist 
segments with a portfolio of experiential and tailormade holidays 
unrivalled product knowledge and superb customer experiences
during 2014 the specialist  activity sector saw a mixed performance 
from its various businesses delivering broadly flat operating profit  
on a constant currency basis we saw a strong result from our north 
american education and north american specialist businesses sport 
benefited from weak yearonyear comparatives as well as the ashes 
and 2014 fifa world cup tournament however these results were 
offset by soft trading within the marine and adventure businesses 
3  		 le v e ra gi n g 	 o u r 	 gl o b a l 	 l e a d e rsh i p 	 p o si ti o n 	 i n	
a c c o m m o da ti o n 	 wh o l esa l e r 	 th r o u gh 	 gr o w th	
i n 	 e x isti n g 	 ma r k ets
our accommodation wholesaler business is a market leader operating 
in the b2b segment with a global distribution presence we have a clear 
strategy of consolidating our marketleading position even further by 
focusing on high growth markets such as asia africa and latin america 
the global hotel market which includes all hotel bookings amounts 
to €378bn with the accommodation wholesaler market accounting 
for €35bn of this spend we also continue to explore avenues for new 
product growth – for example roi back global obi which was 
acquired during 2014 provides online solutions and marketing to hotels 
in addition we announced a three year deal in march 2014 with easyjet 
holidays to act as their accommodation and transfer  activity provider 
accommodation wholesaler continues to grow its global leadership 
position delivering ttv growth of 15 to £1899m during the year 
with a strong performance from asia and latin america roomnights 
grew by 16 to 225 million during 2014 with hotel inventory also 
increasing by 8 to over 67000 hotels accommodation wholesaler 
delivered a 21 growth in underlying operating profit during the year 
on a constant currency basis 
4 	i n v esti n g 	 i n 	 a c c o m m o da ti o n 	 o t a
in accommodation ota online travel agent our focus is to build on our 
strong brand positioning of lateroomscom in the uk and expand in the 
emerging markets through asiaroomscom across asia and in brazil 
with malapronta brazil’s fourth largest accommodationonly ota
accommodation ota ttv declined by 9 to £382m during the year 
the decline in ttv was primarily driven by a reduction in unprofitable 
marketing spend within our asiarooms brand on the mobile side 
we launched new ios and android apps across all brands laterooms 
asiarooms and malapronta we look to capitalise on mobile growth 
through a single content management platform in the year ahead
5  		 f o cus 	 o n 	 f r e e 	 cash 	 fl o w 	 g e n e ra ti o n	 	
r o i c	 a n d 	 o p e ra ti o na l 	 ef fi ci e n cy
one of our key strategic objectives is to continue to improve the group’s 
profitability and free cash flow delivering superior returns on investment 
this improvement will allow us to invest further in the future of our 
business which will benefit our customers colleagues and shareholders
during the year we generated a strong free cash flow with an 
improvement yearonyear of £50m to £477m on a constant currency 
basis we delivered a strong roic performance of 146 2013 148 
down slightly on prior year due to foreign exchange translation and 
an increase in the underlying effective tax rate as a result of delivering 
increased profits in higher taxed jurisdictions such as germany 
we generated a cash conversion rate of 85 in 2014 2013 93 
this was above our cash conversion target of at least 70
our groupwide business improvement programme delivered £12m 
of cost savings during the year in line with our expectations these 
cost savings were primarily driven by back office restructuring and it 
platform replacement across a number of markets this leaves £7m 
of the business improvement programme left which is expected to 
close fully in 2015 with these cost savings coming through the uk and 
specialist  activity sector 
6 	 p i o n e e r i n g 	 susta i na b i l i ty 	 cha n g e 	 i n 	 o u r 	 se ct o r
we see sustainability as an integral part of our differentiation strategy 
and we have experienced a range of business benefits including cost 
efficiencies quality improvements and the enhanced engagement of 
customers colleagues and suppliers we have made significant 
progress in the final year of our sustainable holidays plan – our three 
year sustainability strategy which aligns with our corporate strategy 
and strategic drivers
our airlines are the most carbon efficient in europe in 2014 tui travel 
airline’s co
2 per revenue passenger kilometre was 699g – an 
improvement of 103 over the last six years this was achieved through 
investment in new more fuelefficient aircraft operational efficiencies 
fuel conservation activities and capacity amends
we exceeded our goal to deliver 10 million greener and fairer holidays 
over three years by taking over 115 million customers to hotels with 
credible sustainability certifications 55 million in 2014 we featured 
over 5900 hotels with sustainability certifications in 2014
our sustainability performance has been recognised through many 
achievements in 2014
• for the seventh consecutive year tui travel was featured in cdp’s 
climate disclosure leadership index cdli and was ranked joint 
first place in the ftse 350 for our approach to climate change 
reporting and disclosure tui travel was the only travel  leisure 
company to feature in the 2014 cdli
• we continue to be listed in the ftse4good index in recognition  
of meeting strict social environmental and governance standards
• tuifly was ranked the most climateefficient airline in the world  
with over one million passengers in the 2014 atmosfair airline index
• thomson airways won the best aviation programme for carbon 
reduction at the 2014 world responsible tourism awards
our growth levers 
creating shareholder value continued 57 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
	
b u s i n e s s	a n d	f i n a n c i a l	r e v i e w
 
directors’ report
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
segmental performance
segmental performance is based on underlying financial performance which excludes certain items 
including separately disclosed items acquisition related expenses and impairment of goodwill
m a i nst r e a m
the mainstream sector reported an underlying operating profit of £546m 2013 £514m on a constant 
currency basis underlying operating profit increased by 13 to £581m
2014 2013 change
c u s t ome r s 	  ‘ 0 0 0 
uk 5223 5232 flat
nordics 1557 1600 3
germany
1
6245 6459 3
france 1390 1585 12
other 5070 5094 flat
total 19485 19970 2
reve n u e 	  £ m 
uk 3927 3879 1
nordics 1108 1223 9
germany 3951 4161 5
france 945 1077 12
other 2476 2528 2
t otal 12407 12868 4
un d e r l y ing 	 op e r at ing 	 p ro fi t   lo s s  	  £ m 
uk 271 251 8
nordics 47 79 41
germany 113 113 flat
france 36 60 40
other 151 131 15
t otal 546 514 6
m ain s t re am 	 key 	 p e r for m an c e 	 in dic at or s 	   
unique mix
2
71 68 3pp
customer satisfaction – key source markets 79 79 flat
direct distribution mix 68 66 2pp
online mix 38 35 3pp
1 germany customers restated to include seat only sales distributed by tuiflycom
2 unique mix updated to include airtours brand and longhaul destinations not previously included within packages
the main drivers of the yearonyear change in underlying operating profit are summarised in the following table
£m uk nordics germany france other mainstream
2013 251 79 113 60 131 514
trading 16 26 11 10 36 47
french contract provision – – – 11 – 11
business improvement 4 – – 5 – 9
201 4 	 at 	 c on s t an t 	 c u r re n c y 271 53 124 34 167 581
fx translation – 6 11 2 16 35
201 4 271 47 113 36 151 546
£ 5 46m	
ma instr eam 	 sector	
u n d e r l y in g 	 o p e ratin g	
pr ofit 	 20 1 3  	 £ 5 1 4m  58 tui travel p l c annu al r epo rt  ac counts 2014
bus iness and f inan cia l rev ie w tt 27  ar 2014  xx082014  design
uk
key performance indicators  2014 2013 change pts
unique mix 84 83 1pp
direct distribution mix 91 89 2pp
online mix 51 47 4pp
the uk business delivered a £20m improvement in underlying operating 
profit to £271m during the year this translates to an operating margin 
of 69 a 40 basis point improvement over the prior year this record 
result was driven by focus on higher margin unique holidays increasingly 
distributed online and greater operational efficiency
we continued to see strong demand for unique holidays accounting 
for 84 of departures up by one percentage point on the prior year 
new openings during the year included sensatori jamaica new couples 
product in croatia kalamota island and morocco madina gardens 
as well as a new holiday village resort in ibiza the result benefited from 
a two percentage point increase in direct distribution to 91 compared 
with the prior year online bookings accounted for 51 of all bookings 
up four percentage points yearonyear
the uk business delivered £4m of efficiency savings towards the 
business improvement programme in the period
nordics
key performance indicators  2014 2013 change pts
unique mix 94 93 1pp
direct distribution mix 90 89 1pp
online mix 70 67 3pp
nordics achieved an underlying operating profit of £47m 2013 £79m 
the decline in operating result was driven primarily by a weak 
performance in h1 reflecting weaker pricing due to a significant 
reduction in the egypt programme political unrest in thailand and 
a more competitive environment overall particularly in the canaries 
which is a key destination and source of winter profitability the nordic 
business delivered an underlying operating margin of 42 2013 65 
or 45 on a constant currency basis
our performance during the second half of the year stabilised delivering 
a broadly flat h2 operating profit yearonyear on a constant currency 
basis we united the four countries under a ‘one nordic’ structure 
which will be built upon as we focus on differentiated product and 
driving further operational efficiencies a change in management in 
early summer saw eivor andersson join the group to take charge of 
tui nordic
unique holidays accounted for 94 of departures one percentage 
point ahead of the prior year direct distribution increased by one 
percentage point to 90 new openings during the year included one 
new blue village in kos six new blue star and five new blue couples 
concepts in antalya bodrum palma sicily cyprus online distribution 
continues to grow standing at 70 of bookings up three percentage 
points over the prior year
germany
key performance indicators  2014 2013 change pts
unique mix
1
52 49 3pp
direct distribution mix 37 36 1pp
online mix 11 8 3pp
1  unique mix updated to include airtours brand and longhaul destinations not 
previously included within packages
germany reported a £11m increase in underlying operating profit on  
a constant currency basis to £124m including currency translation 
germany reported flat operating profit of £113m 2013 £113m 
operating margin for the german business increased by 20 basis 
points to 29 in 2014 and to 3 on a constant currency basis
last year we launched our popular tui reisewelten labels beach 
classic lifestyle nature premium and scene which along with 
continued focus on our highly differentiated holiday concepts has 
increased the mix of unique holidays to 52 up three percentage 
points we continue to implement our strategy to improve direct 
distribution with a focus on online via our tuicom website direct 
distribution stands at 37 an increase of one percentage point over 
the prior year online continues to grow and stood at 11 of bookings 
in 2014 up by three percentage points from the prior year
france
key performance indicators 
tour operator  2014 2013 change pts
unique mix 89 81 8pp
direct distribution mix 56 56 flat
online mix 24 18 6pp
france reported a reduced underlying operating loss of £36m 2013 
loss of £60m this reflected the continued delivery of efficiency 
savings and alignment of tour operator capacity in line with demand
our overall direct distribution mix of 56 2013 56 remained flat 
with the increase in online bookings offset by the planned closure of 
part of our retail estate the french tour operator delivered £4m of 
efficiency savings towards the business improvement programme in 
the period 
the airline result declined by £6m from the prior year with an operating 
loss of £7m the yearonyear decline was driven by weak local demand 
not helped by an outbreak of the chikungunya virus in the caribbean 
and ebola concerns in africa the french airline delivered £1m of 
efficiency savings towards the business improvement programme during 
the period 
underlying operating loss £m 2014 2013 change 
tour operator 29 59 51
airline 7 1 na
36 60 40
other
the other source markets generated operating profit growth of 
15 to £151m 2013 £131m driven by a very strong performance 
from our netherlands business that saw operating profit more than 
double this was due to a higher volume of unique holidays sold and 
airline efficiencies 
segmental performance
continued 59 tui travel p l c annu al r epo rt  ac counts 2014
 
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tt27  ar 2014  xx082014  design
accommodation  d estinations
accommodation  destinations ad delivered an underlying operating profit of £80m 2013 £78m  
on a constant currency basis underlying operating profit moved forward £7m to £85m reflecting a £10m 
improvement in online accommodation and £3m reduction in profit in inbound services
ttv for the sector increased by 6 to £33bn 2013 £31bn this was primarily driven by the strong 
doubledigit growth in accommodation wholesaler
a ccommodation  d estinations 2014 2013 change 
key performance indicators
accommodation wholesaler roomnights online 16
accommodation ota traffic online 6
accommodation ota roomnights online 11
incoming passenger volumes 2
r evenue £m 872 750 16
underlying operating profit £m
online accommodation 48 40 20
inbound services 32 38 16
total 80 78 3
the main drivers of the yearonyear change in underlying operating profit are summarised in the table below
£m
online 
accommodation inbound services
accommodation 
 destinations
2013 40 38 78
trading – 3 3
accommodation wholesaler 10 – 10
accommodation ota – – –
2014 at constant currency 50 35 85
fx translation 2 3 5
2014 48 32 80
emerging markets
emerging markets reported an underlying operating loss of £18m in the year 2013 loss of £12m the result 
for this sector reflects the ongoing challenging trading environment for the tour operators in russia and 
ukraine the trading environment continues to be challenging due to geopolitical issues
emerging markets share of jv  2014 2013 change 
revenue £m 11 – na
underlying operating loss £m 18 12 50 60 tui travel p l c annu al repo rt  accounts 2014
bus iness and finan cial revi ew tt 27  ar 2014  xx082014  design
segmental performance
continued
sp e ci a l ist 	  	 a cti v i ty
specialist  activity reported underlying operating profit of £38m 2013 £41m on a constant currency 
basis specialist  activity reported broadly flat profits of £40m negative translation impact of £2m the 
yearonyear decline reflects soft trading within the marine and adventure businesses this was partially 
offset by improved trading in north american specialist and north american education the sport division 
benefited from the ashes and 2014 fifa world cup tournaments
s p e c i a l i s t 	  	 a c t i v i t y 2014 2013 change 
c u s t ome r s 	  ‘ 0 0 0  1293 1403 8
reve n u e 	  £ m  1329 1433 7
un de r l y ing 	 op e r at ing 	 p ro fi t 	  £ m  38 41 7
the specialist  activity sector delivered £3m of efficiency savings towards the business improvement 
programme in the period
on lin e 	 a c c o m mo dati o n
the online accommodation business delivered underlying operating 
profit of £48m 2013 £40m reflecting a strong underlying performance 
within accommodation wholesaler ttv for online accommodation 
grew by 10 to £23bn and roomnights increased by 16 
accommodation wholesaler continues to grow its global leadership 
position delivering ttv growth of 15 to £1899m during the year 
with a strong performance from asia and latin america roomnights 
grew by 16 to 225 million during 2014 with hotel inventory also 
increasing by 8 to over 67000 hotels accommodation wholesaler 
delivered a 21 growth in underlying operating profit during the year 
on a constant currency basis 
accommodation ota ttv declined by 9 to £382m during the year 
the decline in ttv was primarily driven by a reduction in unprofitable 
marketing spend within our asiarooms brand on the mobile side we 
launched new ios and android apps across all brands laterooms 
asiarooms and malapronta we look to capitalise on mobile growth 
through a single content management platform in the year ahead
i nbound 	 ser vices
the inbound services business delivered underlying operating profit  
of £32m 2013 £38m the reduction in profit was driven by £3m 
adverse foreign exchange translation and the continued difficult 
trading environment in north africa
incoming passenger volumes increased by 2 over the prior year in 
cruise handling the number of port calls handled increased by 11
1 0
gr o wth 	 in 	t t v	 in 	 online 	
a c c o m m o dati o n 	 in 	 20 1 4	
compar ed 	 to 	 20 1 3 61 tui travel p l c annu al repo rt  accounts 2014
 
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tt27  ar 2014  xx082014  design
current trading and outlook
accommodation wholesaler continues to grow doubledigit with ttv 
up by 19 we remain encouraged by the trading performance in 
specialist  activity with sales up 4
s umme r 	 2 0 1 5
the strong start to uk trading for summer 2015 continues with 
bookings up by 9 average selling prices are up 2 reflecting strong 
pricing in the prior year comparative sales of unique holidays are up 
7 compared with this time last year accounting for 84 of holidays 
sold to date broadly in line with the prior year to date 22 of the 
programme has been sold
f ue l f o r ei gn 	 e x ch a n g e
the majority of our fuel and currency requirements for the seasons 
currently on sale are already hedged which gives us certainty of costs 
when planning capacity and pricing the following table shows the 
percentage of our forecast requirement that is currently hedged for 
euros us dollars and jet fuel
as at 28 november 2014 winter 201415 summer 2015
euro 88 67
us dollars 88 77
jet fuel 90 80
o u tl ook
we are delighted to have delivered another year of outperformance 
against the growth roadmap we set out in december 2012 this 
demonstrates the strength and resilience of our business model in what 
has been a competitive trading environment for many tour operators 
and airlines our uk business is going from strength to strength 
delivering a 69 underlying operating profit margin this year as we 
continue to build on our strong marketleading position in germany 
further progress has been made in realising operational efficiencies 
growing unique content and driving online sales also particularly 
pleasing has been our performance in the netherlands and reducing 
our losses by half in the french tour operator in addition to the 
strong performance by mainstream our accommodation wholesaler 
business delivered a second year of growth in earnings in excess of its 
growth roadmap
we are pleased with the progress in winter 201415 trading and 
the strong start to summer 2015 trading in the uk continues 
the combination of our market leadership position scale focus on 
unique holidays distributed increasingly online and our relationship with 
the customer throughout their whole holiday experience continues to 
provide a strong basis for sustainable profitable growth the merger 
with tui ag will strengthen and futureproof our combined group 
it will also enhance the certainty of longterm unique holiday growth 
and reinforce our clear competitive advantage through further control 
over the endtoend customer experience this will mark the start of 
an exciting new phase of growth delivering significant opportunities 
and value to customers employees and shareholders
wi n t e r 	 2 0 1 4  1 5
we are pleased with our current trading performance for winter 201415 
to date 63 of the mainstream programme has been sold with overall 
bookings and average selling prices up 1
c urr ent 	t ra din g
1
winter 201415
yoy variation
total
asp
2
total
sales
2
total 
customers
2
programme 
sold 
m ain st re am	
uk 2 7 4 53
nordics 4 3 6 73
germany flat 1 2 58
france tour operators 3 8 11 54
other
3
2 2 4 78
total mainstream 1 2 1 63
a c c o m mo d at io n 	 w h o le s a le r
4
2 19 17 na
1  these statistics are up to 30 november 2014 and are shown on a constant currency basis
2  these statistics relate to all customers whether risk or nonrisk
3  other includes austria belgium netherlands poland and switzerland
4  sales refer to total transaction value ttv and customers refers to roomnights
in the uk bookings are up 4 and average selling prices are up 2 
we are continuing to see strong demand for longhaul destinations 
driven by our expanded 787 fleet with overall longhaul bookings up 
13 new winter resorts include the sensatori jamaica which opened 
its doors in may 2014 unique holiday bookings are up 7 accounting 
for 84 of overall bookings up three percentage points on prior year 
online bookings are up 7 accounting for 51 of bookings up two 
percentage points on prior year to date approximately 53 of the 
winter programme has been sold
in the nordics bookings are down by 6 but ahead of the capacity 
reductions we have made to strengthen our competitive position in 
this difficult market we are pleased with average selling prices which 
are up by 4 sales of unique holidays account for 92 of bookings  
in line with last year online bookings account for 69 of bookings  
up three percentage points on prior year to date approximately  
73 of the winter programme has been sold
in germany bookings are up 2 with flat average selling prices unique 
holiday bookings are up 12 accounting for 48 of total bookings up 
four percentage points our digital transformation continues to deliver 
with online bookings up 27 accounting for 12 of total bookings 
a two percentage point increase to date approximately 58 of the 
winter programme has been sold
in france bookings are down 11 but ahead of capacity reductions 
where we have made selected capacity cuts in north africa we are 
encouraged by positive average selling prices which are up 3 we have 
seen good growth in alternative destinations for the french market 
such as spain which is up by more than 50 versus the prior year 
to date approximately 54 of the winter programme has been sold
63 	
ov erall 	 ma instr eam	
winter 	 pr o gramme 	 sold	
 up 	 to 	 1 	 d ecember 	 20 1 4  62 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  14102014  p roof 1
tax 
t h e 	 gr o u p ’ s 	 a p p r o ach 	 t o 	 tax	
the group’s approach to tax matters is to comply with all relevant tax 
laws and regulations wherever we operate in the world whilst managing 
our overall tax burden 
w e 	 look 	 to 	 pa y 	 the 	 ri ght 	 and 	 fa ir 	 amount 	 of 	 t ax es 	 in 	 a ccordance	
with 	 the 	 let ter 	 and 	 spirit 	 of 	 the 	 la ws 	 in 	 the 	 countries 	 in 	 which 	 w e	
do 	 business 
we consider the ‘right’ amount of tax as being in accordance with the 
letter of the law and the ‘fair’ amount of tax as being in accordance 
with the government policy intention for which the law was introduced
t h e 	 gr o u p ’ s 	 tax 	 o b j e cti v es
in view of the group’s approach to tax the following highlevel tax 
objectives have been developed
• commercial and sustainable tax planning to support the group’s 
business operations
• optimisation of the group’s tax risk and control environment
• accurate and timely tax compliance on a fulldisclosure basis
• optimisation and stability of the income statement effective tax 
rate and cash tax payments
• excellent working relationships with tax authorities
these are considered in more detail in the following sections
t ax 	 g o v e r na n c e
the group’s tax strategy is determined by the board of directors as  
a subset of the group’s overall business strategy and is approved 
annually by the audit committee operational responsibility for the 
execution of the group’s tax strategy rests with the chief financial 
officer and the director of tax who report the group’s tax position  
to the audit committee on a regular basis
the group risk management committee considers tax risks that may 
arise as a result of our business operations on a quarterly basis through 
the group’s risk management framework the consideration of such tax 
risks includes actions to mitigate the risks or to prevent their occurrence 
or reoccurrence
c on t e xt
the effective tax rate on the group’s underlying profit before tax for 
2014 was 31 up from 27 in 2013 the group paid cash income 
taxes of £125m in 2014 an increase of £15m from 2013 these increases 
are due to the group’s increasing year on year underlying profitability 
and in particular increasing underlying profitability in countries that 
have statutory rates of corporation tax or corporate income tax in 
excess of the uk rate of 22 we consider the cash taxes that we 
pay to governments are an important source of revenue for them in 
providing a stable infrastructure and environment in which we operate 
our businesses
the group’s businesses operate in 180 countries this geographical 
diversity leads to considerable complexity in our tax affairs and tax 
authorities around the world are subjecting the tax affairs of large 
companies to evergreater scrutiny we look to manage our tax affairs in 
a manner to support our business operations with the aim of ensuring 
that the tax consequences of our business operations match the 
economic and commercial consequences of those business operations 
for example we look to ensure that the same profits are not taxed twice 
by different countries and that transactions between subsidiary and 
associate companies are conducted on arm’slength terms and prices 
where a tax rule regulation or incentive exists that may convey a tax 
advantage to our operations such as using losses incurred in prior years 
or tax depreciation from investing in our business we will use that rule 
regulation or incentive to support our businesses in many countries 
such rules operate automatically by law for example using uk losses 
incurred in prior years to offset current year uk taxable profits
the group uses the services of external expert tax advisers to provide 
input into the group’s tax affairs such as the management of compliance 
in some overseas jurisdictions and the impact of changes in tax legislation 
on the group
the macro tax environment will be subject to considerable change as 
a result of the recent international cooperation between governments 
to address crossborder and international tax matters the oecd’s 
base erosion  profit shifting beps study is the prime example of 
this international cooperation 
the beps study is due to publish its final recommendations over the 
next 12 months and these recommendations are likely to be adopted by 
many if not all governments as with all legislative change the group 
continues to monitor the possible impact on its business operations
t h e 	 l o ca ti o n 	 o f 	 o u r 	 b us i n esses	
tui travel operates across 31 key source markets these source 
markets are ‘home’ to our tour operators and airlines it is from these 
source markets that our 30 million customers wish to travel our 
inbound services companies and associates operate in key leisure 
travel destinations 
as a leisure travel group we take people on holiday to some countries 
that have low or zero tax rates this means that we may have subsidiary 
companies in such locations for example we have a legal entity in the 
british virgin islands which operates a yacht base for our moorings 
business and is one of the island’s largest employers we also have 
legal entities in other caribbean islands for the same purpose and for 
operating hotels that our customers visit  63 tui travel p l c annu al repo rt  accounts 2014
 
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tt27  ar 2014  14102014  proof 1
p a y ment 	of	 t a xe s
territory
2014 	
£m
2013 
£m
australia 1 2
belgium 24 21
canada 1 –
denmark – 2
dominican republic – 1
finland 1 3
france 3 6
germany 37 26
greece 3 –
italy 1 –
mexico 3 2
morocco 1 5
netherlands 10 6
norway 3 4
portugal 3 1
spain 5 12
sweden 18 4
turkey 6 –
united kingdom 3 14
usa 3 –
others payments less than £1m 1 5
t otal 125 110
p a y m e n t 	 o f 	 tax es
in the year ended 30 september 2014 the group paid corporate income 
taxes of £125m an increase of £15m or 14 over 2013 
the amounts shown in the table below represent the corporate income 
tax or corporation tax or cash tax payments made by the company and 
its subsidiaries during the year ended 30 september 2014 different 
countries have different rules as to how companies should make 
payments of cash taxes with some requiring payments on account to 
be made during the current year or the immediately following year or a 
combination of these methods whilst others may use the immediately 
preceding year as the basis for cash tax payments cash tax payments 
may be lower than the tax charge for the year due to the utilisation of 
brought forward tax losses against current year profits
with regard to uk cash taxes £3m is the corporation tax paid in the 
year ended 30 september 2014 this is lower than may be expected 
due to the utilisation of losses brought forward from earlier years and 
tax depreciation capital allowances resulting from investment in our 
uk business we expect the amount of uk corporation tax to increase 
in future years as these brought forward losses reduce
r e la ti o nsh i ps 	 w i th 	 tax 	 a u th o r i ti es
we look to develop and maintain good working relationships with tax 
authorities in the countries in which we operate we communicate with 
them in an open honest and positive manner where it is possible to do 
so we seek to discuss our major commercial transactions and their tax 
consequences and treatment with tax authorities in advance of their 
execution or seek an advance ruling of the tax consequences and 
treatment of such transactions in order to provide us with certainty 
of the tax treatment we are committed to transparent and prompt 
full disclosure in all tax matters we pay our tax liabilities when they 
become due
we recognise that there will be areas of differing legal interpretations 
between the group and tax authorities where this occurs we will engage 
with tax authorities to try to resolve the matters in a cooperative and 
expedited manner where a conclusion cannot be reached in such a 
manner the tax authority or the group may choose to litigate the issue 
through the relevant legal system
the group reviews new tax law and regulations introduced by 
governments around the world from time to time where we believe 
that new laws would have a disproportionate or detrimental impact on 
the group’s businesses or require amendment to achieve the intention 
of the new law we will lobby the relevant government either in our 
own name or as part of a trade association to explain the potential 
issues and to suggest alternatives  64 tui travel p l c annu al repo rt  accounts 2014
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tt27  ar 2014  14102014  p roof 1
1 2 3 4 5
board of directors as at 30 september 2014
1 	 f riedrich 	 j oussen 	nonexecutive chairman
age 51
nationality german
appointment friedrich joussen joined the board on 8 february 2013 as a 
nonexecutive director and was appointed nonexecutive 
chairman on 25 march 2013
committee  
membership
member of the nomination committee
key skills  
 experience
friedrich has extensive experience in driving global business 
performance strategy and innovation
career from 2005 to september 2012 he was chief executive officer 
of vodafone germany the largest operating company in the 
vodafone group friedrich joined mannesmann mobilfunk gmbh 
in 1988 and held various positions in the newlyfounded 
mannesmann mobilfunk including marketing director 
between 1997 and 2000 when the mannesmann group was 
taken over by vodafone he was appointed director of global 
product management at the vodafone group in newbury 
uk he has a master of science in electrical engineering from 
rwth aachen university and has registered several patents 
friedrich was a key contributor to the introduction of sms 
in the german mobile market and is considered the creative 
architect behind the development and marketing of the 
mobile portal ‘vodafone live’ 
external  
appointments
chief executive officer of tui ag
2  	 sir 	 micha el 	h odgkinson 	nonexecutive deputy chairman  
and senior independent director 
age 70
nationality british
appointment sir michael hodgkinson joined the board of tui travel plc 
on 28 june 2007 as nonexecutive deputy chairman and is 
the senior independent director
committee  
membership
chairman of the nomination committee and member of the 
audit and remuneration committees 
key skills  
 experience
sir michael has a wealth of industry knowledge and 
experience in strategic planning business and leadership 
development and stakeholder management
career sir michael joined the board of first choice holidays plc  
as a nonexecutive director in january 2004 and became 
chairman in march 2004 following an early career in the 
automotive industry he was appointed chief executive of 
grand metropolitan’s european food division in 1986 and in 
1992 he joined baa plc and became chief executive in 1999  
a post from which he retired in june 2003 sir michael was 
senior nonexecutive director at royal mail and chairman 
of post office limited until september 2007 a director 
of bank of ireland plc from may 2004 until july 2006 
a nonexecutive director of dublin airport until november 
2011 and a nonexecutive director of transport for london 
and crossrail limited until june 2012 
external  
appointments
chairman of keolis uk limited and nonexecutive director 
of keolisgo ahead
3 	 p eter 	 lon g 	chief executive
age 62
nationality british
appointment peter long joined the board on 28 june 2007 as chief 
executive
key skills  
 experience
a proven leader with unparalleled travel industry 
understanding and strong skillsets in strategic planning 
development and implementation
career in november 1996 peter was appointed managing director of 
tour operations at first choice and became chief executive  
in september 1999 prior to joining first choice he was chief 
executive of sunworld holidays from february 2001 to june 
2005 peter was a nonexecutive director of rac plc and from 
april 2006 to july 2009 he was a nonexecutive director of 
debenhams plc he was appointed as a nonexecutive 
director of rentokil initial plc in 2002 and plans to resign with 
effect from 31 december 2014
external  
appointments
senior independent nonexecutive director rentokil 
president family holidays association member of the 
tourism council a partnership between the uk government 
and the tourism and hospitality sector
4 	 j ohan 	 lundgr en 	deputy chief executive
age 48
nationality swedish
appointment johan lundgren joined the board on 21 december 2007  
and was appointed deputy chief executive in october 2011
key skills  
 experience
johan has considerable travel industry experience and a 
proven track record in driving global business performance 
and change management
career having worked in the tourism industry since 1986 johan is 
responsible for the mainstream sector of tui travel plc  
prior to his appointment as deputy chief executive he was 
managing director of the northern region of tui travel’s 
mainstream sector which includes the source markets uk  
 ireland canada sweden norway denmark and finland 
prior to the merger in 2007 johan was chief executive of  
tui nordic and also took responsibility for tourism sales in  
the source markets of italy and russia
5 	 william 	 w a g g ot t 	chief financial officer
age 51
nationality british
appointment william waggott joined the board on 28 june 2007 as 
commercial director he was appointed chief financial 
officer of tui travel plc in november 2010
key skills  
 experience
will’s significant skillsets include financial reportingcontrols 
strategic planning financing and risk management
career will spent the early part of his career with coopers  lybrand 
and courtaulds textiles plc where he performed various 
senior group finance and divisional director roles he entered 
the leisure travel industry when he joined airtours plc and 
held a number of positions including uk leisure group finance 
director prior to joining thomson travel group in 2001 he went 
on to become chief financial officer of tui tourism in 2006 65 tui travel p l c annu al repo rt  accounts 2014
 
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6 	 h orst 	 ba ier 	nonexecutive director 
age 58
nationality german
appointment horst baier joined the board as a nonexecutive director on  
13 october 2009
key skills  
 experience
horst has an indepth knowledge of financial management  
and wideranging international and industry experience 
career horst began his professional career in the treasury 
department of continental ag the german tyre manufacturer 
between 1994 and 1996 horst was finance director for 
the schickedanz group based in fürth in 1996 he took 
over responsibility for the treasury accounting and tax 
department at tui group gmbh in 2007 horst became 
a member of the executive board of tui ag and has been 
the chief financial officer of tui ag since 2010
external  
appointments
member of the executive board  chief financial officer  
of tui ag
7	 sebastian 	e bel 	nonexecutive director
age 51
nationality german
appointment sebastian ebel joined the board on 25 march 2013 as 
a nonexecutive director following his appointment as 
operating performance director of tui ag on 1 february 2013
key skills  
 experience
sebastian has extensive experience in driving business 
performance worldwide operational effectiveness it 
retail and financial reportingcontrols 
career in may 2013 he was appointed chief operating officer of  
tui ag sebastian started his professional career at 
salzgitter ag in a strategic role between 1991 and 1997 
he worked in various roles in the preussag group and left 
his position as director of group control at the preussag ag 
head office to join viag ag in munich as head of 
telecommunications sebastian returned to preussag now 
tui ag in 1998 as a member of the executive committee 
and joined the executive board in 2003 he left tui ag in 
2006 and founded eves information technology ag and eves 
unternehmensberatung gmbh over the following two years 
in 2008 sebastian joined the atu group as chief financial 
officer and subsequently as chief operating officer from 
2011 to 2013 he worked for vodafone deutschland as chief 
financial officer
external  
appointments
chief operating officer tui ag
8  	 v al 	 goodin g 	independent nonexecutive director
age 64
nationality british
appointment val gooding joined the board on 7 february 2014
key skills  
 experience
val has many years’ experience in senior executive 
and nonexecutive roles where she has acquired 
considerable knowledge in corporate strategy organisation 
development marketing customer service operations and 
business turnarounds
career val spent 12 years working at bupa and left her role as 
chief executive in 2008 having transformed the business 
from a purely ukbased operation to a major international 
group with £5bn of revenues prior to joining bupa val spent 
many years with british airways where she held a number 
of senior roles including head of cabin services head of 
marketing director asia pacific and director business units 
where she was responsible for british airways’ retail shops 
charter airline and tour operator businesses she has served 
on the boards of several companies including most recently 
standard chartered plc and j sainsbury plc
external  
appointments
nonexecutive chairman of premier farnell plc and 
nonexecutive director of vodafone plc
9 	 janis 	 kon g 	independent nonexecutive director 
age 63
nationality british
appointment janis kong joined the board on 29 may 2012
committee  
membership
member of the audit and remuneration committees
key skills  
 experience
janis has extensive knowledge of the aviation industry 
she also has considerable experience in retail consumer 
products and risk management
career janis brings a wealth of experience to the group having 
had a 33year career with baa where she held numerous 
operational positions including managing director at gatwick 
airport before leaving baa in 2006 janis was chairman 
of heathrow airport limited for five years as well as the 
chairman of heathrow express she was also chairman of 
the board of trustees of forum for the future from april 
2006 to july 2012 and from february 2006 to july 2014 
she was a nonexecutive director of visitbritain
external  
appointments
nonexecutive director of network rail kingfisher plc and 
portmeirion group plc nonexecutive board member of 
copenhagen airports as 66 tui travel p l c annu al repo rt  accounts 2014
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tt27  ar 2014  14102014  p roof 1
1 0 11 12 13
1 0 	 c o lin e 	 mcc o n v i lle 	independent nonexecutive director 
age 50
nationality australian
appointment coline mcconville joined the board on 21 september 2011
committee  
membership
chairman of the remuneration committee and member  
of the audit committee
key skills  
 experience
coline has a wealth of international experience with 
a background in management marketing media and 
strategic consulting
career coline was chief executive europe at clear channel 
international limited for 10 years where she was responsible 
for operations across 58 countries including the uk france 
italy and spain she began her career in management 
consultancy working with both mckinsey  co in london and 
the lek partnership in munich during her career coline has 
gained considerable remuneration committee experience –  
she was remuneration committee chairman for specialist 
divisions at hbos plc as well as being a committee member 
for a number of public companies coline also served on the 
board of shed media plc and as an adviser to the private 
equity firms apax and actis she is a law graduate with an 
mba from harvard harvard fellow baker scholar
external  
appointments
nonexecutive director of wembley national stadium 
limited utv media plc and inchcape plc
11	 minno w 	 p o w ell 	independent nonexecutive director
age 60
nationality british
appointment minnow powell became a nonexecutive director in 
april 2011
committee  
membership
chairman of the audit committee and member of the 
nomination committee
key skills  
 experience
minnow has extensive experience in external and internal 
audit risk management financial controls and corporate
financial reporting in a wide variety of sectors
career during his 35 years at deloitte minnow became a senior 
partner and concentrated on looking after deloitte’s major 
clients including baa hammerson reed elsevier anglo 
american and bskyb he was also a member of the uk’s  
audit practices board for six years
external  
appointments
nonexecutive director and chairman of the audit 
committee of supergroup plc
12	 dr 	e rhard 	 schippor eit 	independent nonexecutive director
age 65
nationality german
appointment dr erhard schipporeit joined the board as a nonexecutive 
director on 29 october 2007
key skills  
 experience
erhard has many years’ experience of international 
industry particularly in financial reportingcontrols and 
risk management
career erhard started his career in 1979 in the bosch group and in 
1981 he joined varta agvarta battery ag at that time 
a leading european battery company where he became 
chief financial officer in 1990 and chief executive and 
chairman of the executive board in 1993 after the successful 
restructuring of varta the next move in his career brought 
him to the munichbased conglomerate company viag ag 
as cfo viag merged in 2000 with veba ag to form the new 
eon ag one of the world’s leading utility companies erhard 
was cfo and executive board member of eon from 2000 
until his resignation in november 2006 from 2007 to 2010 
he was senior advisor for bnp paribas sa
external  
appointments
nonexecutive director of sap se deutche boerse ag 
talanx ag hanover re se fuchs petrolub se bdo ag and 
fidelity funds sicav
13	 dr 	 alber t 	 schunk 	independent nonexecutive director 
age 73
nationality german
appointment dr albert schunk joined the board as a nonexecutive 
director on 29 october 2007
key skills  
 experience
albert has comprehensive knowledge of the german 
market and experience in human resources and the wider 
travel industry
career albert studied economics at university and carried out 
a research project for the german government in latin 
america after joining igmetall he has served on the 
supervisory board of volkswagen and other german 
companies since 1976
external  
appointments
member of the european economic and social council in 
brussels
board of directors as at 30 september 2014
continued 67 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  xx082014  design
bo a r d 	 p r o c e dur es  r esp o nsibil i ti es
the board’s primary responsibility is to promote the longterm success 
of the company by creating and delivering sustainable shareholder 
value the board seeks to achieve this through setting out its strategy 
monitoring its strategic objectives and providing oversight and 
direction to the management team the board considers the impact of 
its decisions on wider stakeholders including employees suppliers and 
the environment
the board meets regularly including visits to operational locations 
and is responsible for the overall leadership strategy and control of 
the group a full schedule of matters reserved for the board’s decision 
along with the terms of reference of the board’s key committees 
and the individual roles of board members can be found online  
at wwwtuitravelplccom and will be available for inspection at the 
annual general meeting agm the schedule of matters includes 
• determining the strategy of the group 
• amendments to the structure and capital of the group 
• approval of financial reporting 
• oversight of the group’s internal controls
• approval of capital and revenue expenditure of a significant size 
• acquisitions disposals and share dealings 
• board membership and appointments 
• approval of remuneration of directors and certain senior management
• corporate governance matters and 
• approval of group policies and risk management strategies 
the board has overall responsibility for ensuring the effectiveness of the 
group’s system of internal control and risk management framework and 
this has been developed in accordance with the code this system of 
control is designed to manage and mitigate rather than eliminate the risk 
of failure to achieve business objectives in pursuing these objectives 
internal controls – which include financial operational and compliance 
controls – and risk management can only provide reasonable and not 
absolute assurance against material loss
the role of management is to implement board policies on risk and 
control and the board has delegated the daytoday management of 
the company to the chief executive and through him to the other 
executive directors and members of the group management board 
gmb for information on the gmb see ‘our people’ on pages 32 
and 33
c ha i rma n ’ s 	 go v erna n ce 	 s ta tem ent
the board of tui travel plc believes that effective corporate 
governance is integral to the successful delivery of our business goals 
and is therefore a key contributor to the longterm success of the 
company we remain committed to maintain standards by ensuring 
that a robust framework of systems and controls is in place and 
refreshed on a continual basis we have made good progress across 
the governance agenda – some of which is highlighted in the following 
pages we know that processes and procedures need to be reviewed 
and improved on an ongoing basis and our aim is that they become 
embedded in the daily lives of management throughout the group
the board’s role is to set the strategy for the group and to this end 
we work closely with the executive team to give support and advice 
we also provide challenge where appropriate in order to drive 
continued and sustained improvement 
for this year the board had agreed to put in place new initiatives  
in respect of succession planning – as well as our annual talent 
management review we planned a more detailed approach to 
succession planning for the independent nonexecutive directors 
however in view of the proposal for the company to merge with our 
majority shareholder tui ag these initiatives were put on hold and 
will now be reviewed upon completion of the merger
as chairman i am fortunate to be able to call on a broad range of  
skills and perspectives in the board room from colleagues with a deep 
understanding of the challenges which face us now and in the future 
f riedrich 	 j oussen
chairman
c o m pl ia n ce 	 – 	 u k 	c o rpo ra te 	 go v erna n ce 	c od e 	 p r o visi o ns
throughout the reporting period the company has complied with all 
relevant provisions of the uk corporate governance code september 
2012 the code including its main principles except in respect of 
code provision a31 – the chairman should on appointment meet  
the independence criteria set out in code b11 see explanation on 
page 69
le a d e rsh ip
for audit committee report see page 73 nomination committee 
report see page 77 and remuneration committee report see page 79
corporate governance report
b oa r d 	 g o v erna n ce 	 stru c tu r e	
t h e	 bo a r d 	 o f 	t u i	t r a v e l 	 plc
a u d it 	 c o m m it t e e
de l eg a ted 	 a ut hor i ties
monitors the integrity of our financial reporting 
the performance of the internal audit function 
and of the external auditor and reviews the 
effectiveness of the group’s systems of 
internal control
m em b er s
minnow powell – chairman
sir michael hodgkinson
janis kong
coline mcconville
val gooding
n o m i n a t i o n 	 c o m m it t e e
de l eg a ted 	 a ut hor i ties
ensures that the board and its committees have 
the optimum balance of skills knowledge and 
experience by nominating suitable candidates  
for approval by the board to fill executive and 
nonexecutive vacancies
m em b er s
sir michael hodgkinson – chairman
friedrich joussen
minnow powell
val gooding
r e m u ne r a t i o n 	 c o m m it t e e
de l eg a ted 	 a ut hor i ties
sets remuneration and incentives for the executive 
directors approves and monitors remuneration 
and incentive plans for the group and assesses 
and makes recommendations to the board on the 
policy on executive remuneration
m em b er s
coline mcconville – chairman
janis kong
sir michael hodgkinson
val gooding 68 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  xx082014  design
corporate governance report 
continued
at tendance 	 of 	 dir ec tors 	 at 	 meetin gs 	 of 	 the 	 boar d	
and 	 it s 	c ommit tees	
board 
meetings
nomination 
committee 
meetings
audit 
committee 
meetings
remuneration 
committee 
meetings
independent 
director 
meetings
friedrich joussen
 
chairman 78 34 – – –
sir michael hodgkinson 
senior independent 
director  deputy 
chairman 88 44 88 88 33
e xe c u t i ve 	 dir e c t o r s
peter long  
chief executive 88 – – – –
johan lundgren  
deputy chief executive 88 – – – 33
will waggott 
chief financial officer 88 – – – 33
volker böttcher
1
02 – – – –
i n d e p e n d e n t 	 n o n 
e xe c u t i ve 	 dir e c t o r s
tony campbell
1
12 – – – –
val gooding
23
55 00 22 33 33
janis kong 88 – 88 88 33
coline mcconville 88 – 78 88 33
minnow powell 88 44 88 – 33
erhard schipporeit 78 – – – 23
dr albert schunk 88 – – – 33
harold sher
4
88 44 – – 22
n o n  e xe c u t i ve 	 dir e c t o r s	 	
 n o t 	 c o n s i d e re d	
i n d epe n d e nt 
horst baier 78 – – – –
sebastian ebel 88 – – – –
vladimir yakushev
5
00 – – – –
figures in brackets indicate the maximum number of meetings during 
the year in which the individual was a board member
notes
1 resigned on 16 december 2013
2 appointed to the board with effect from 7 february 2014
3 joined the nomination committee on 18 september 2014
4 retired on 18 september 2014
5 appointed on 7 february 2014 and resigned on 24 march 2014
dr erhard schipporeit was unable to attend meetings on 26 june 2014 
as they conflicted with commitments already in his diary between june 
and september 2014 there were three meetings of the independent 
directors to deal with matters relating to the merger between the 
company and tui ag a fourth meeting was also held on 10 october 
2014 the directors considered independent in this context are 
sir michael hodgkinson val gooding janis kong johan lundgren 
coline mcconville minnow powell erhard schipporeit dr albert schunk 
and will waggott – ie excluding peter long member of the executive 
board ‘vorstand’ of tui ag friedrich joussen and horst baier 
also members of the vorstand and sebastian ebel member of the 
management board of tui ag
there were two meetings of the nonexecutive directors without 
management present held in december 2013 and september 2014 
these focused primarily on the effectiveness of the board
the key elements of the company’s internal control and risk 
management framework in place across the group are as follows 
• the board sets corporate strategy and business objectives 
the gmb and sector management integrate these objectives into 
their operational and financial business plans 
• the gmb meets regularly together with other senior executives to 
consider group operational and financial performance and business 
development the chief executive reports to the board on behalf 
of the gmb on significant changes in the business and the external 
environment the chief financial officer provides the board 
with financial information which includes key performance and 
risk indicators
• the group operates a risk management process which is integrated 
within the short and longterm business planning processes see 
page 42
• the treasury position of the group including cash foreign exchange 
and fuel hedging exposure is managed centrally in accordance with 
policies appropriate for each sector and is the responsibility of the 
chief financial officer and group treasurer
• financial forecasts providing predicted results with sensitivity analysis 
are prepared routinely throughout the year for review by the gmb 
and the board these forecasts also include details of the group’s 
ongoing compliance with its regulatory and banking requirements 
• the group has established investment appraisal and authorisation 
procedures and its capital expenditure is reviewed against budgets 
which have been approved by the board
• the group routinely assesses the capability of its people to deliver 
the business objectives set and responds accordingly this is 
supported by the three lines of defence see page 42
processes are in place to ensure appropriate action is taken where 
necessary to remedy any deficiencies identified through the group’s 
internal control and risk management processes see page 42
the audit committee on behalf of the board has reviewed the 
effectiveness of internal controls during the year and confirms that
• there is an ongoing process for identifying evaluating and managing 
the significant risks faced by the group
• this has been in place for the year under review and up to the date 
of approval of the annual report and accounts
• the process is regularly reviewed by the board and accords with 
the code and
• in addition the board also reviewed the effectiveness of the risk 
management process
the division of responsibilities between the chairman and chief 
executive is clearly established has been agreed by the board and is 
reviewed annually the board approves any necessary amendments  
to reflect changes in legislation policy and practices
all directors have access to the advice and services of the company 
secretary and can take independent professional advice if necessary 
at the company’s expense during the year advice was sought by the 
independent nonexecutive directors as a group from lazard and 
herbert smith freehills in relation to merger discussions advice was 
also received from bank of america merrill lynch and barclays 
the company secretary is responsible for ensuring board procedures 
are followed including the formal minuting of any unresolved concerns 
that any director may have in connection with the operation of the 
company during the year there were no such unresolved issues
a secure ipadbased paperless meeting system which was introduced in 
2012 continues to be rolled out across the group and helps our drive to 
reduce the impact of our operations on the environment as well as the 
board and its committees this has now been adopted in numerous 
businesses across the group 69 tui travel p l c annu al repo rt  accounts 2014
 
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d i r e c t or s ’ 	 r e p or t
 
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shareholder information
tt27  ar 2014  xx082014  design
val gooding janis kong coline mcconville and minnow powell are 
considered to be effective directors due to their breadth of experience 
and ability to provide appropriate challenge in board debate as part 
of the initial recruitment process external consultants were used to 
conduct a search for suitable candidates and the nomination committee 
considered and concluded that each of them met the independence 
provisions of the code they have no relationships transactions or 
arrangements that are required to be disclosed pursuant to lr138171
erhard schipporeit and albert schunk are considered to be effective 
directors due to their particular industry experience at the time of 
their appointments the nomination committee concluded that they met 
the necessary independence criteria albert schunk is an adviser to riu 
the spanish international hotel group with which the company and 
a number of its subsidiaries have material contractual arrangements 
riu group is also a shareholder of tui ag a controlling shareholder of 
the company erhard schipporeit has no relationships transactions or 
arrangements that are required to be disclosed pursuant to lr138171 
sir michael hodgkinson was the independent chairman of first choice 
holidays plc and was therefore considered to be independent on 
his appointment as the senior independent director of the company 
following the merger with the tourism division of tui ag in 2007 
he is considered to be effective due to his considerable experience 
in executive and nonexecutive positions he has no relationships 
transactions or arrangements that are required to be disclosed 
pursuant to lr138171
the board recommends to shareholders the reappointment of all 
directors retiring at the meeting on the basis that they are all effective 
directors of the company and demonstrate the appropriate level of 
commitment in their respective roles 
for the purposes of the listing rules tui ag is a controlling shareholder 
of the company that is a person or group of people acting together 
which exercises or controls more than 30 of the voting rights in the 
company because the company has a controlling shareholder the 
listing rules require the reelection of the independent directors 
to be approved at the agm by a majority of the votes cast by both 
i the shareholders of the company as a whole and ii the independent 
shareholders of the company that is all of the shareholders of the 
company entitled to vote on the election of the independent directors 
excluding any controlling shareholder
at the agm the company will therefore propose the resolutions in 
relation to the reelection of the independent directors as ordinary 
resolutions on which all shareholders are entitled to vote but the 
company will separately count the number of votes cast by independent 
shareholders in favour of such resolutions as a proportion of the total 
votes of independent shareholders cast to determine whether the 
threshold referred to in ii above has been satisfied the company will 
announce whether each threshold has been satisfied in respect of each 
resolution for the reelection of an independent director 
under the listing rules if a resolution to reelect an independent 
director is not approved at the agm by both a majority of the votes cast 
by the shareholders as a whole and by the company’s independent 
shareholders but one of these two thresholds is satisfied the company 
is entitled to propose a further resolution for the reelection of that 
independent director for the approval of the shareholders as a whole 
by ordinary resolution if the company proposes such a resolution 
the meeting at which the resolution is voted upon must be held at least 
90 days after but within 120 days of the agm 
accordingly if any resolution to reelect an independent director is not 
approved by a majority vote of the company’s independent shareholders 
at the agm the relevant independent directors will be treated as 
having been reelected only for the period from the date of the agm 
until the earlier of i the close of any general meeting of the company 
e f fe c ti v e ness
b oa r d 	 c o m po siti o n	
our board consists of 13 directors – 12 of whom served throughout 
the year at 30 september 2014 in addition to the chairman friedrich 
joussen there were three executive directors and nine nonexecutive 
directors – seven of whom are considered to be independent val 
gooding was appointed as an independent nonexecutive director with 
effect from 7 february 2014 and vladimir yakushev was also appointed 
as a nonexecutive director on 7 february 2014 he resigned on 
24 march 2014 without attending any board meetings volker böttcher 
and tony campbell resigned and retired respectively on 16 december 
2013 and harold sher retired on 18 september 2014
i n de p e n de n ce 	 of 	 n o n e x e cuti v e 	 dir e c t o r s
the chairman friedrich joussen did not comply with the independence 
criteria of the code at the time of his appointment this is because 
mr joussen is the chief executive of tui ag – a 5372 shareholder 
of the company as at 30 september 2014 horst baier and sebastian 
ebel are also not considered to be independent as they are both 
members of tui ag’s executive board 
details of the chairman’s other significant commitments are given 
in his biography on page 64 he has no other external roles and the 
board is confident that he has sufficient time to perform his duties 
as chairman of the company
the nonexecutive directors considered to be independent are 
sir michael hodgkinson val gooding janis kong coline mcconville 
minnow powell dr erhard schipporeit and dr albert schunk each 
year all the directors complete a conflicts of interests and material 
interests in contractsarrangements declaration which captures those 
matters which could affect their independence and such disclosures 
if any are included in this report
the board recognises that the code requires that at least half the board 
excluding the chairman should be independent nonexecutive directors 
and was compliant with provision b12 of the code throughout the year 
ended 30 september 2014 the board is committed to ensure that its 
membership is refreshed on a regular basis 
ski l ls 	 a n d 	 e x p e r i e n ce
biographical details for each of the directors are set out on page 64 
and can also be found online at wwwtuitravelplccom
the directors have collective responsibility for the company’s 
direction in particular nonexecutive directors are responsible for
• scrutinising and challenging performance across the 
group’s business
• bringing wideranging skills and experience including 
independent judgement on issues such as strategy 
performance and risk management
• assessing risk and the integrity of the financial information 
and controls and
• challenging constructively the chief executive and 
executive directors
in accordance with the code all directors will be subject to annual 
reelection by shareholders to enable shareholders to make an 
informed decision the 2015 notice of the agm includes biographical 
details and a statement as to why the company believes the directors 
should be reelected the chairman intends to confirm at the agm 
that the performance of each individual continues to be effective 
and demonstrates commitment to the role the effectiveness of the 
directors is considered as part of the annual board evaluation process 
and any issues arising are addressed appropriately by the chairman 
the reasons why the company considers that each independent 
nonexecutive will be an effective director are given below 70 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  xx082014  design
corporate governance report 
continued
p e r for man ce 	 e val ua ti on
each year the performance of the board and its committees audit 
remuneration and nomination is evaluated the evaluation for the 
years ended 30 september 2013 and 2014 were both undertaken by 
an online survey and comprised a series of questions in relation to the 
running of and business conducted at board meetings the questions 
also covered the performance of individual directors including the 
chairman of each committee each director was asked to place a score 
against the questions and the directors were able to make additional 
comments where appropriate 
summary reports were produced following analysis of the responses 
by broad category and by reference to a trafficlight system showing 
the number of red amber and green scores as disclosed in last year’s 
annual report the board and its committees considered the reports of 
their effectiveness at their meetings in september 2013 following on 
from those initial discussions the chairman had conversations with 
individual directors to highlight any points for further consideration 
following these conversations various positive changes were agreed 
1 the styleformat of presentations was revised to provide greater 
clarity and focus 2 a review of individual skillsets of the directors 
was undertaken to identify any potential gaps 3 a more structured 
approach to reviewing the strategic plan and 4 a more formalised 
and transparent approach to succession planning – particularly in 
respect of the appointment of independent nonexecutive directors 
in addition to give greater visibility of individual senior managers to the 
board and to provide a forum for general discussion it was decided 
that managing directors would be invited to attend board dinners 
and give an informal presentation on their businesses during 2014 
informal presentations were given by the managing directors of four 
significant business areas
one of the outcomes of the 2013 evaluation process led to a review  
of the number and appropriateness of questions in the survey as a 
result of this a full review of the questions was undertaken prior to  
the launch of the survey in april 2014 as the 2013 review had been a 
much more indepth exercise than in previous years fewer issues were 
raised and these were presented and considered at the june 2014 
meeting of the board two outcomes were 1 to carry out more 
postprojectacquisition appraisals and 2 to put in place a more 
rigorous approach to succession planning for nonexecutive directors
in accordance with the code the intention had been to facilitate 
next year’s evaluation by way of personal interviews with an 
independent external adviser but this has been put on hold until 
the merger completes
in march 2014 the nonexecutive directors met to appraise the 
chairman friedrich joussen who had just completed one year in 
his role as chairman it was unanimously agreed that meetings 
were chaired in an open and objective manner which allowed board 
members the opportunity to express their views 
convened for a date at least 90 days after but within 120 days of the 
agm to propose a further resolution to reelect himher ii the date 
which is 120 days after the agm and iii the date of any announcement 
by the board that it does not intend to hold a second vote in the event 
that the independent director’s reelection is approved by a majority 
vote of all shareholders at a second meeting the independent director 
will then be reelected until the next agm 
if any resolution to reelect an independent director is not approved by 
the shareholders of the company as a whole at the agm but is approved 
by the independent shareholders the relevant independent directors 
may be reappointed by the board as a director from the date of the 
agm until the earlier of i the close of any general meeting of the 
company convened for a date at least 90 days after but within 120 
days of the agm to propose a further resolution to reelect himher 
ii the date which is 120 days after the agm and iii the date of 
any announcement by the board that it does not intend to hold a 
second vote 
the terms of the directors’ service contracts are disclosed in the 
remuneration report commencing on page 79 directors’ interests 
in the shares of the company are disclosed on page 93
directors’ service contracts and the letters of appointment of the 
nonexecutive directors are available for inspection at the company’s 
registered office and will be available at the agm which is scheduled  
to take place on thursday 5 february 2015 
the chairman in conjunction with the company secretary ensures that 
a full formal and tailored induction to the company is made available 
for all new directors on appointment and this is updated on a regular 
basis the company secretary is on hand to answer any questions 
which may arise during the year val gooding and vladimir yakushev 
were both given induction  training manuals and val also received 
a full and tailored induction programme she met with members of the 
senior management team including the chief executive deputy chief 
executive chief financial officer company secretary and senior 
managers from it hr corporate communications treasury aviation 
and internal audit meetings were also arranged for her with various 
company advisers ie brokers auditors and lawyers 
dir ec tors’ 	 confl ic t s 	 of 	 inter est s	
under the companies act 2006 the directors have a statutory duty  
to avoid a situation where they have or could have a direct or indirect 
interest that conflicts or possibly may conflict with the interests of 
the company directors of public companies may authorise conflicts 
and potential conflicts where appropriate if the articles of association 
contain a provision to this effect 
the board is aware of the other commitments of its directors and is 
satisfied that these do not conflict with their duties as directors of  
the company the process for monitoring conflicts is as follows
• changes to the commitments of all directors are reported to 
the board
• the directors are required to complete a conflicts questionnaire 
on appointment and annually thereafter
• any conflicts identified are presented to the board for consideration 
and as appropriate authorised in accordance with the companies 
act and the articles of association and
• directors are responsible for notifying the company secretary if 
they become aware of any actual or potential conflict situations 
or a change in circumstances relating to an existing authorisation
the board believes that the procedures established to deal with 
conflicts of interest are operating effectively 71 tui travel p l c annu al repo rt  accounts 2014
 
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tt27  ar 2014  xx082014  design
this covers our businesses in all major source and destination markets 
which have more than 50 employees there is also a webbased whistle
blowing reporting service in cape verde cuba kenya the maldives 
and tunisia these confidential hotlines and webmail reporting facilities 
now cover 995 of group revenue
any matters arising from the use of the whistleblowing channels are 
investigated as appropriate and a summary provided to the audit 
committee the group legal  regulatory compliance department 
works in conjunction with group audit services to investigate and 
advise on any incidents around the group
international tui travel whistleblowing policies make it clear that 
employees can approach senior executives or group audit services  
to make reports and emphasise that anyone making a report with 
honest intentions need not fear any adverse consequences even if the 
information provided proves to be unfounded colleagues are also 
encouraged to approach compliance through a dedicated compliance 
email address human resources or line managers with any issues  
they may face
c o m p eti ti o n 	 c o m p lia n ce
a comprehensive competition training knowhow and support 
programme is in the process of being delivered to remind our senior 
management purchasing teams and others of their obligations to 
foster healthy competition and protect against anticompetitive 
practice under eu and local legislation through the jurisdictions in 
which we do business over 85 of our toptier senior managers  
have been trained in their competition law obligations from both  
an eu and a local law perspective in facetoface seminars for senior 
management and elearning for other colleagues currently being 
rolled out it requires colleagues to reaffirm their commitment to 
leading responsibly and competing vigorously in all our markets and  
to contact group legal or group compliance with any concerns
data 	 pr otec ti on
the security of customer and employee data is a key group priority  
a group data protection and privacy programme has been initiated 
with a data privacy network of data protection officers around the 
group led by our chief data protection officer a new senior data 
protection counsel has been appointed who works closely with it 
security functions group policies on data protection and retention 
have been updated to reflect the changing regulatory environment  
and to facilitate secure international data transfers data privacy 
professionals sit on the architecture governance boards of specific 
projects a data protection elearning and poster campaign has been 
designed for roll out in 2015 
sanc ti ons 	 watch
the group legal  regulatory compliance team updates relevant 
businesses and where necessary assists in communications to 
investors and financial institutions on changing us and eu sanctions 
obligations and trade restrictions affecting local businesses giving  
legal advice and training where appropriate
ac c o un t a bil i t y
the directors’ responsibilities statement can be found on page 102 
the business  financial review the audit committee report 
nomination committee report directors’ and remuneration reports 
can be found on pages 52 to 61 73 to 76 77 and 79 respectively
legal 	 and 	 r egulator y 	 compliance	
an annual group legal  regulatory compliance selfcertification 
process is in place where all operational businesses across the group 
certify their progress in benchmarking baselevel to gold standard 
operational legal  regulatory controls against group criteria in the 
areas of antibribery  corruption abc competition data protection 
and trade restrictions sanctions and controls against financial crime 
businesses answer detailed questions about their practices and provide 
extra information when required those responses inform a tailored 
proactive and strategic approach to risk management they are 
analysed prioritised and used to monitor and drive the progress of 
businesses in these vital areas from 2015 questions on the approach 
to human rights by group businesses will be included
anti 	 briber y 	  	c orrupti on 	  abc 
the company has become the first in the travel industry to join the 
esteemed anticorruption charity transparency international as a 
member of its business integrity forum
88 of employees across the group have undergone riskfocused 
travelindustryspecific training on their responsibilities under local and 
international abc legislation updated abc business gifts  hospitality 
conflicts of interest and investigation policies have been communicated 
and guidance on third party due diligence and facilitation payments 
distributed a compliance intranet page has been created to give 
greater online visibility of compliance initiatives regular bulletins are 
distributed to stakeholders on legal developments and a ‘compliance 
champion of the year’ award inaugurated to recognise achievements in 
the field a ‘say no’ software app has been developed in association with 
the institute of business ethics to give employees practical assistance 
in difficult situations our abc due diligence around highrisk profile 
contracting has been improved during the year we are proud of our 
supplier code of conduct detailing the group’s ethical and compliance 
expectations of suppliers this is one of the first of its kind in our 
industry and has been in roll out to all our material suppliers since 
may 2013 see sustainable development on page 24 antibribery 
responsibilities are now included in new supplier contracts our group 
legal  regulatory compliance team gives legal advice on highrisk 
negotiations and transactions where necessary
group audit services administer a yearly conflict of interest declaration 
for 3500 senior managers which has been extended to new joiners in 
2014 and now includes an explicit commitment to legal and regulatory 
compliance and business integrity in accordance with tui values
wh ist l e b l o w i n g	
whistleblowing hotlines are now fully operational in the uk usa 
australia austria belgium brazil bulgaria canada china costa rica 
croatia cyprus denmark dominican republic egypt finland france 
germany greece hong kong india indonesia italy jamaica malaysia 
malta mauritius mexico morocco netherlands netherlands antilles 
norway peru poland portugal russia singapore south africa spain 
sweden switzerland thailand turkey ukraine united arab emirates 
vietnam and the british virgin islands  72 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  xx082014  design
in respect of general meetings of the company 
• the company prepares separate resolutions on each 
substantially separate issue and does not combine resolutions 
together inappropriately
• the election or reelection by shareholders of an independent 
director will require approval both by a majority of the votes cast  
by the shareholders as a whole and by the company’s independent 
shareholders but if one of these two thresholds but not both is 
satisfied the company is entitled to propose a further resolution  
to be voted upon at least 90 days but within 120 days after the date 
of the agm for the reelection of that independent director for  
the approval of the shareholders as a whole by ordinary resolution
• proxy appointment forms provide shareholders with the option to 
vote for against or to withhold their vote the proxy form makes it 
clear that a ‘vote withheld’ is not a vote in law and will not 
be counted
• all postal proxy votes are returned to equiniti the company’s 
registrar which is responsible for ensuring votes are properly 
received and counted
• proxy counts are displayed at the close of the agm and the final poll 
results are posted on the company’s website wwwtuitravelplccom 
following closure of the meeting and
• the annual report and accounts is laid before shareholders 
at the agm
the directors consider that the annual report and accounts taken  
as a whole is fair balanced and understandable and provides the 
information necessary for the company’s shareholders to assess  
the company’s performance business model and strategy
r ela ti o ns 	 with 	 sha r eh o ld ers	
the chief executive chief financial officer and members of the investor 
relations team hold regular meetings with major shareholders to review 
the group’s performance and prospects the views of shareholders 
are communicated to all members of the board following such 
meetings during the course of these meetings the issue of governance 
is discussed presentations to major shareholders are made at least 
twice yearly after the announcement of the interim and preliminary 
results details of which together with the group’s financial reports 
and other announcements can be accessed via the group’s website 
wwwtuitravelplccominvestorsmedia
the code recommends that the senior independent director meets 
with a range of major shareholders to gain an understanding of their 
views sir michael hodgkinson senior independent director and 
coline mcconville chairman of the remuneration committee held 
meetings with several major shareholders during october 2013 they 
also met with shareholders in october last year to explain the changes 
in the committee membership and to discuss remuneration policy 
generally see page 88 for further details sir michael hodgkinson also 
met with a number of major shareholders to discuss the implications  
of the proposed merger with tui ag
as a result of the extensive investor feedback provided by the 
chief executive the chief financial officer and those nonexecutive 
directors who did meet with shareholders the remaining nonexecutive 
directors did not consider it necessary to meet with other major 
shareholders during the year they believe that they are kept aware of 
all issues which are fed back to them at board meetings and therefore 
additional meetings were not required however they have confirmed 
they would be happy to make themselves available if any shareholder 
requested such a meeting
regular updates are produced by the company’s brokers and circulated 
to the board to keep them informed of market and industry views the 
updates also include analyst views of tui travel’s position in the market
there is an opportunity for shareholders to question the chairman and 
other directors including the chairmen of the audit remuneration and 
nomination committees at the agm the agm also provides a forum 
for the nonexecutive directors to discuss the views of shareholders 
with them directly
corporate governance report 
continued 73 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  16102014  proof 1
a u di t 	c om m i tt e e
the audit committee comprised five independent nonexecutive 
directors at 30 september 2014 – minnow powell val gooding sir 
michael hodgkinson janis kong and coline mcconville four were 
members throughout the year and val gooding was appointed on  
1 july 2014 at least one had recent and relevant financial experience 
in compliance with the code provision c31 
the chairman chief executive chief financial officer director of 
group audit services and the external auditor are invited to and 
routinely attend all meetings and other nonexecutive directors  
may also attend
me etin gs
the audit committee met eight times during the year the chairman 
of the audit committee reports to the board on how the committee 
discharges its responsibilities
as chairman of the audit committee it is my responsibility to ensure 
that the committee is rigorous and effective in its role of monitoring 
and reviewing
• the integrity of the financial statements of the company including 
formal announcements relating to the company’s financial 
performance and the significant financial reporting judgements 
contained therein
• the effectiveness of internal controls and the risk management 
framework including presentations from group sector regional 
and functional management
• the effectiveness of internal audit including agreeing in advance  
the work of group audit services and reviewing the results of the 
work undertaken 
• the arrangements by which employees may raise concerns regarding 
potential impropriety in confidence and ensuring these concerns  
are investigated appropriately and
• the integrity of the group’s relationship with the external auditors 
and the effectiveness of the audit process including reviewing the 
policy for the engagement of the external auditors to supply 
nonaudit services considering their appointment reappointment 
and removal and approving the remuneration and terms of 
engagement of the external auditors
the audit committee agenda is designed in concert with the board’s 
to ensure that all significant areas of risk are considered during the 
course of the year during the year we have continued to focus on 
improving key financial controls processes and procedures across the 
organisation and i am pleased with the good progress that has been 
achieved in fulfilling our responsibilities in this regard however there 
are still improvements to be implemented and embedded across the 
group which will remain a key point of focus for the committee 
i am satisfied that the audit committee was presented with papers of 
good quality during the year provided in a timely fashion to allow due 
consideration of the subjects under review i am also satisfied that 
meetings were scheduled to allow sufficient time to enable full and 
informed debate we reviewed and amended our terms of reference 
with reference to the code and guidance from the institute of 
chartered secretaries  administrators icsa we decided that 
oversight of the annual report  accounts and whether it is fair 
balanced and understandable should be a matter for the board as a 
whole the updated terms of reference were approved by the board 
and are available on wwwtuitravelplccominvestorsmedia 
during the year we invited a number of members of management  
to present to the committee on key areas of risk and control in order 
to encourage transparency and accountability together with open 
discussion and debate management invited to present to the 
committee included 
• the managing directors and finance directors of our major 
businesses 
• the project managers and project sponsors of our major projects 
including additional updates where the projects were significant 
and complex
• group accounting including new accounting developments and 
controls over prepayments 
• group treasury including group treasury policy and counterparty 
risks
• group tax including the group’s overall taxation strategy and the 
key factors for the group’s overall tax position and forecasts for the 
future tax charge and cash taxes and
• group insurance including related risks and mitigation
i met individually and in private with management in order to 
understand more fully the context and challenges of their business 
operations and thereby ensure the committee’s time was used most 
effectively 
the activities of the committee members have enabled us to gain a 
good understanding of the culture of the organisation the risks and 
challenges faced and the adequacy and timeliness of the action being 
taken to address them 
no major matters were raised in the annual evaluation of the 
committee’s performance
minno w 	 p o w ell	
chairman
audit committee 74 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  16102014  p roof 1
liab i l i ties
the business model is such that it is the level of provisions and accruals 
and any judgements thereon which can have a significant impact on 
the income statement detailed analysis of the key judgements was 
received by management to support the recognition of such balances 
on the yearend balance sheet and it is an area which our group 
auditors focus on in their work and discuss with us we are satisfied 
that the balances reported are materially accurate 
in addition we examined the specific risks relating to the main legal 
cases facing the group and the adequacy of provisions made against 
them management presented papers detailing the background to each 
case the latest developments their assessment of the respective risks 
the mitigating action taken and amounts provided we agreed with the 
judgements reached by management in each of the cases presented
h o t el 	 pr epa ym e nt s
twice a year the audit committee reviews the level of prepayments 
made to hoteliers and assesses their recoverability with reference to 
the expected volumes of future trading with and the creditworthiness 
of those hoteliers
separately 	 disclosed 	i tems 	 sdi s 
sdis 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 we reviewed the 
items proposed by management to be reported as sdis each quarter 
to validate that it was appropriate for such items to be reported this 
way and agreed with their judgement items included the pension 
credit arising in the uki as a consequence of offering to members 
and pensioners of the defined benefit pension schemes the option to 
swap future higher pension increases for a higher initial pension with 
lower annual increases and restructuring costs in tuifly as heavy 
maintenance work is being outsourced to other group companies  
and to third parties 
the risks relating to the vat position of hotelbeds product slu and 
the decision to regularise the position were taken by the board as a 
whole 
the performance and future prospects of our joint venture operating 
in the russian and ukrainian source markets were also considered by 
the board as a whole as a result of this review £28m of loans made  
to the joint venture were provided for and disclosed separately
t ax
we reviewed the judgement of management in assessing whether 
deferred tax assets will be utilised in future periods and agreed with 
the balances reported on the yearend balance sheet in respect of 
german trade tax we once again reviewed the judgement made by 
management who also requested an update from external advisors on 
the opinion provided last year the update continued to support the 
group position that with the risk more than minimal but less than 
50 the disclosure as a contingency remains appropriate at this time 
p r ofit 	 estimate
the independent directors reviewed the schedule and activities 
proposed by management and pwc to ensure effective reporting in 
august and october of the estimated year end result in accordance 
with rule 28 of the city code the independent directors reviewed  
on each occasion both the process itself and the key judgements we 
note that the actual results are consistent with the estimates made
during the year activities of the committee included the following
t h e 	 in t e gr i ty 	 o f 	 fi n a n c i a l 	 r e p or tin g 	
we reviewed the integrity of the financial statements of the company 
and all quarterly announcements relating to the company’s financial 
performance 
in last year’s annual report we reported on judgements relating to 
aircraft transactions and denied boarding compensation along with 
our annual review of going concern impairment provision for claims 
sdis and tax the key areas reviewed in the current year are set out 
below in each case we reviewed discussed and challenged detailed 
papers received from management and took account of the views of 
the external auditors
denied 	 boardin g 	c ompensati on 	 dbc 
as a result of a ruling by the european court of justice in october 
2012 there is a present obligation to past events in respect of delay 
compensation being due to passengers where they have been subject 
to a flight cancellation or a delay of more than three hours subject to 
certain restrictions accordingly a provision is required 
again this year we reviewed the methodology for provisioning in 
relation to dbc exposure the input factors the key assumptions being 
applied and the classification for financial reporting we were satisfied 
that the resultant provision had been calculated on a reasonable basis 
in light of current claims experience ie rolling claim rates and payout 
ratios in each of the source markets whilst noting that these factors 
may change with future experiences 
goin g 	 concern
we assessed our available facilities including those to be made available 
by tui ag when the merger completes facility headroom our banking 
covenants and the sensitivity analyses on these items
we challenged management’s forecasts including sensitivities to 
downturns in budgeted trading reduced customer deposits were 
factored explicitly into the model and an assessment of the degree  
of flexibility in the payables ledger at the cash low point in december 
2014 was also taken into account
we were satisfied that the going concern basis of preparation 
continues to be appropriate in the context of the group’s funding 
and liquidity position
annual 	 g oodwill 	 impa irment 	 r e view
during the year we also considered the judgements made in relation  
to the valuation methodology adopted by management and the model 
inputs used we reviewed the recommendation made by external 
advisers who were engaged to calculate the weighted average cost  
of capital using more robust longterm data to reduce the impact of 
shortterm stock market volatility we examined movements against 
the previous year in the risk premium and longterm growth rate for 
each cash generating unit reviewed the detailed wacc calculations 
along with the explanations provided and noted that the impairment 
model was consistent with the longterm planning approved by the 
board in september 2014 we were satisfied with the quality of the 
work presented
the annual impairment review has not resulted in an impairment 
charge this year 
we also reviewed and approved the sensitivities applied by 
management which were consistent with 2013 and the ‘reasonably 
possible’ change to model inputs including the related disclosure  
as required by ias 36
audit committee
continued 75 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  16102014  proof 1
 – we received feedback during the year on the progress being 
achieved in relation to preventative and detective controls 
implemented during the year and activity planned for the coming 
year relating to antibribery  corruption competition data 
protection due diligence and antimoney laundering sanctions 
and human rights legislation
• group it compliance created in march 2012 to provide a compliance 
framework across the group’s it function by producing andor 
publicising appropriate standards and monitoring compliance to those 
standards using a mixture of selfassessment and a programme of 
review visits
 – we noted the progress being achieved in relation to the 
development of the it control environment and the strengthening 
of the team we reviewed the group’s compliance with pci dss 
and the ongoing work and necessary work on improving the 
effectiveness of business continuity planning bcp and disaster 
recovery dr we will continue to monitor progress during this 
coming year 
while there is still further work to do we noted that the three group 
compliance functions and the three functions that make up group 
audit services risk internal audit and fraud work well together to 
ensure the free flow of relevant information between them and have 
developed a coordinated and consistent approach across the group 
through the group compliance steering committee
we reviewed the talent pool of senior financial management during 
the year noting the continued rollout of competency testing in 
conjunction with korn ferry a third party consultant for key finance 
management and the role of the finance academy to educate and 
train our employees
t hird 	 line 	 of 	 defence
i nt e rna l 	 a u d it
we noted further improvements in the development and effectiveness 
of the internal audit function during the year against the transformation 
plan set out by the director of group audit services in 2012 the 
function continues to innovate and we have noted the close and 
constructive working relationship that has developed between internal 
audit and the business as evidenced in annual and post audit projects 
feedback surveys which are reported in full to the audit committee 
and in comments made by management directly to the committee 
we believe this reflects well both on the function and on management
the committee holds a private session with the director of group audit 
services without management present once a year i also meet with the 
director of group audit services informally before each committee 
meeting without management present in order to provide the 
opportunity for open and timely dialogue typically we discuss the 
quality and content of papers due for discussion with the committee 
emerging business risks the quality of management engagement with 
internal audit and key internal audit findings and the associated response
t h e 	 e f f e cti v e n e ss 	 o f 	i n t e r n a l 	 a u di t
again this year we requested a review on the effectiveness of internal 
audit the approach was consistent with the previous two years 
covering the effectiveness of the function positioning processes 
systems and people effectiveness was assessed both from an internal 
perspective through an independent review of the function 
benchmarked against best practice and from an external perspective 
the perception of 12 senior financial personnelsenior management 
and seven board members we were pleased to note that the function 
continues to perform strongly 
t h e 	 e f f e cti v e n e ss 	 o f 	 in t e r n a l 	 c on tr ol s 	 a n d 	 th e	
r i s k 	 m a n a g e m e n t 	 f ra m ew or k
we recognise that a robust and effective system of internal control 
is critical to achieving reliable and consistent business performance 
on behalf of the board we review the effectiveness of the risk 
management and control systems in relation to the key financial 
operational and compliance controls we noted continued focus and 
improvement in this area during the year 
we also reviewed the key controls preventative and detective in  
place to identify and mitigate the risk of material misstatement due to 
noncompliance with laws and regulations per the financial reporting 
council’s report audit quality thematic review dated january 2014 
and reviewed the risks to the business arising from fraud and the 
associated controls management have in place to minimise those risks
we have seen continued improvement in the transparency and active 
ownership of risk and control management throughout the organisation 
driven and supported by a strong tone at the top we have noted the 
growing strength of the three lines of defence whilst we are pleased 
with the progress achieved there remains much still to do and work in 
these areas will be ongoing in 2015 
first 	 line 	 of 	 defence
ma na ge me n t	
we continue to spend time with management below board level in order 
to understand their concerns and the risks controls and challenges in 
their respective business or functional areas 
local 	 compliance 	 func ti ons
we noted the continued investment in local compliance functions within 
our key businesses during the year which will serve to strengthen 
the control environment closer to the frontend of businesses across 
the organisation
second 	 line 	 of 	 defence
risk 	 mana gement
we have noted the appetite of the group risk management function 
to drive continuous improvement in the risk management competence 
and capability of the group and the positive results that have been 
achieved in ensuring transparency alignment and accountability through 
the organisation we have received regular updates on the work of the 
group risk management committee and noted the quality of the risk 
discussions that have taken place during the year 
while significant improvements have been made in the year this will 
continue to be a strong area of focus during the coming year 
gr ou p 	 c o m p lia n ce 	
we noted the continued development and strengthening of the 
group compliance functions during this year the committee receives 
presentations from the three group compliance functions up to 
four times a year
• group financial compliance created in 2011 to provide assurance 
that individual company balance sheets across the group are fairly 
stated and minimum financial controls are adhered to through a 
programme of site visit reviews to ensure that companies in the 
group comply with existing financial reporting requirements 
 – we received feedback on the individual visits the ongoing 
programme of education communication and independent 
validation of the financial minimum controls as well as feedback 
on quarterly selfassessment returns
• group legal  regulatory compliance created in january 2012 
to identify assess and respond to legal and regulatory risk across 
the group 76 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  16102014  p roof 1
r eappointment 	 of 	 ex ternal 	 auditors
based on the results of our annual review and our experience during 
the year we have recommended to the board the reappointment of 
the external auditors who have been our auditors for four years in the 
event that the merger with tui ag does not complete we will continue 
to review the performance of pwc formally on an annual basis and 
although not required by the uk code to undertake a formal tender 
process until 2020 will continue during this remaining sixyear period to 
keep this under close review in the best interests of our shareholders
n o na u di t 	 se r v i ces
the audit committee has developed the company’s policy on the 
engagement of the auditors to supply nonaudit services and has 
sought to ensure that the provision of such services does not impair 
the independence and objectivity of the company’s external auditors 
we have achieved this by considering the auditing practices board 
ethical standard number 5 revised this relates to nonaudit services 
provided to audited entities and sets out six principal threats to 
objectivity and independence for example the auditors cannot act as 
management nor audit their own work we have reviewed monitored 
and approved where appropriate the nature and extent of nonaudit 
services provided by the company’s external auditor and are satisfied 
that their independence and objectivity has not been compromised 
we have also reviewed the fees both individually and in aggregate 
relative to the audit fee and management’s compliance with the 
approval thresholds set out in the company’s nonaudit services policy
we acknowledge that in some circumstances the external auditors’ 
understanding of the business can be beneficial in improving the 
efficiency and effectiveness of advisory work and therefore it has 
been considered appropriate that the external auditors be engaged
a summary of the policy is given below
• nonaudit fees are capped in any one year to no more than the audit 
fee itself 
• routine tax compliance and advisory services may be provided up to 
a preapproved maximum of £1m in any one financial year subject 
to the overall cap noted above
• any engagement where the value is expected to exceed £100000 
but be less than £250000 should be preapproved by the chairman 
of the audit committee and
• engagements at or above £250000 must be preapproved by the 
audit committee
in total £19m was spent on nonaudit fees during the year being 28 
of audit and audit related fees fees in respect of the merger with  
tui ag are being borne by that company further details of nonaudit 
services are set out in note 7 significant expenditure that was 
authorised in the year ie £250000 or over is outlined below
n onaudit 	 ser vices 	 – 	 significant 	e xpenditur e 	 authorised
business 
area
work 
undertaken
rationale for use of  
the external auditor
 
£000s
group extension of the project 
to benchmark the group’s 
it infrastructure 
detailed knowledge 
and understanding 
of the business
250
minno w 	 p o w ell
chairman
3 december 2014
t h e 	 a r ra n g e m e n ts 	 b y 	 w hich 	 s taf f 	 m a y 	 ra i s e	
c on c e r ns 	 r e ga r din g 	 p o t e n ti a l 	 im p r op r ie ty 	 in	
c on fi d e n c e 	 a n d 	 th at 	 th es e 	 c on c e r ns 	 w i l l 	 b e 	
i n v e s t i ga t e d 	 a ppr o pri a t ely
we received updates during the year on the arrangements by which the 
business encourages feedback from management and employees on 
instances of potential impropriety this included presentations from 
group legal on the development of the whistleblowing hotlines across 
the group including number of calls issues and benchmarking against 
other named companies from group finance on the development 
of hot principles honesty openness and transparency and the 
communication thereof via the finance academy
t h e 	 in t e gr i ty 	 o f 	 th e 	 g r ou p ’ s 	 r e l ati ons hip	 	
w i th 	 e xt e r n a l 	 a u di t 	 a n d 	 th e 	 e f f e cti v e n ess	 	
o f 	 th e 	 e xt e r n a l 	 a u di t 	 p r oc ess
e f fec tiv eness 	 of 	 ex ternal 	 a udit
again this year we requested a review of the effectiveness of external 
audit although this year we adopted a new survey this survey was 
completed by 13 senior financial personnel and senior management 
closely involved in the yearend reporting process and four members of 
the audit committee and a shorter survey was completed by operating 
business fds and group department heads the surveys covered three 
key areas – the robustness of the audit process the quality of delivery 
and the quality of people and service questions related to professional 
scepticism integrity and competence understanding of the business 
risks issues and their impact the clarity and appropriateness of the 
audit strategy the efficiency and effectiveness of audit delivery 
constructive relationships and control recommendations good 
judgement and clear and timely communication overall the survey 
results were positive about pwc’s performance we noted that all of 
the key actions identified from the previous year’s review had been 
addressed some further areas for improvement were identified during 
this year’s review and we will assess progress against these in 2015 
in addition we also noted the results of the audit quality review team 
part of the financial reporting council assessment of the effectiveness 
of pwc relative to its peers as well as pwc’s own transparency report 
details of fees payable to the auditors and its associates are given in 
note 7 further information in respect of nonaudit services is given 
on the right
audit 	 plan 	 and 	 appr oa ch
during the year we reviewed pwc’s benchmarking of our organisation’s 
audit risks relative to the ftse 100 and the audit strategy developed 
as a result we noted the riskbased audit approach key areas of audit 
focus materiality and the audit plan produced as a result the annual 
plan takes account of size complexity and the control environment of 
individual businesses as well as the overall coverage split by revenue 
absolute ebita and absolute net assets we welcomed pwc’s 
assessment that the risk of material misstatement in the group accounts 
has reduced over the last two years but we noted and agreed with their 
continued emphasis on substantive as opposed to controls testing
the committee holds a private session with the lead partner without 
management present once a year immediately prior to the publication 
of the yearend accounts in addition i meet with the lead partner on 
a regular basis throughout the year to provide the opportunity for open 
communication and the free flow of any concerns relating both to the 
openness transparency and general engagement of management with 
the audit process as well as to understand pwc’s assessment of key 
judgements as they arise 
audit committee
continued 77 tui travel p l c annu al repo rt  accounts 2014
 
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tt27  ar 2014  17102014  proof 2
vladimir yakushev was appointed to the board as a nonexecutive 
director on 7 february 2014 vladimir was the managing partner of 
sgroup capital management sgroup – the company’s joint venture 
partner in russia – and it was felt that his background knowledge and 
skills in the russian market would enhance the geographical diversity of 
the board he was not considered to be independent on appointment 
following his resignation from sgroup he resigned from the board on 
24 march 2014 having not attended any meetings
as mentioned above harold sher retired from the board on 
18 september 2014 having also joined at the time of the merger in 
2007 the board will miss his wise counsel and valued contribution 
over the last seven years and wish him a long and happy retirement 
c o m positi o n 	 of 	 th e 	c o m m it tee
as at 30 september 2014 the committee comprised three independent 
nonexecutive directors and one shareholder director the latter 
being appointed in accordance with the relationship agreement 
the chairman is sir michael hodgkinson senior independent 
nonexecutive director and the other members are minnow powell 
independent val gooding independent and friedrich joussen 
shareholder harold sher independent was also a member of 
the committee until his retirement on 18 september 2014
k e y 	 o b j ec tiv es
• to identify evaluate and recommend candidates for appointment 
as directors
• to ensure that the board has the right balance of skills mix of 
knowledge and experience and
• to review and contribute to the talent management strategy for 
the board its committees and senior managers in order to attract 
a highlyqualified and diverse workforce
the committee’s main focus is to strengthen balance and understand 
the range of skills experience and diversity of the board its committees 
and key roles below board level
during the year the composition of the board and its committees 
has been refreshed val gooding was appointed as an independent 
nonexecutive director with effect from 7 february 2014 she was 
also appointed to both the audit and remuneration committees on 
1 july 2014 and the nomination committee on 18 september 2014 
we are pleased that female representation on the board is now at 23 
2013 13 it had been the board’s intention to refresh its membership 
further by the end of 2014 but because of the merger with tui ag this 
has been put on hold for the time being in addition the recruitment 
process for replacing harold sher following his retirement as a director 
on 18 september 2014 has also been postponed
appo i ntm ent s 	 a n d 	 r esi gna ti o ns 	 d u ri n g 	 th e 	 y ea r
on 16 december 2013 there were two resignations from the board – 
volker böttcher executive director and tony campbell independent 
nonexecutive director volker joined the board of tui travel following 
the merger between first choice holidays plc and the tourism division 
of tui ag in 2007 he was the managing director of the group’s german 
specialist division and prior to that held a number of senior roles 
including managing director central europe volker resigned from the 
company to pursue a career in the field of academia tony campbell 
also joined the board following the merger in 2007 his wealth of 
knowledge and experience in retailingonline distribution was greatly 
valued and his input in the board’s deliberations will be missed 
in relation to the appointment of val gooding an extensive search of 
suitable candidates was carried out by an independent external agency 
– the miles partnership – which has no other connection with the 
company prior to commencing the interview process the balance of 
skills experience independence diversity the working of the board as 
a unit and its collective knowledge had been taken into consideration 
when preparing a description of the role and capabilities required 
consideration was also given to whether candidates would have 
sufficient time available to devote to their duties the committee 
concluded that val was an excellent candidate and would contribute 
significantly to the board’s deliberations because of her wide breadth 
of experience in executive and nonexecutive positions over many years 
it was also concluded that val was independent in both character and 
judgement and therefore met the independence criteria laid out in the 
provisions of the uk corporate governance code following a review 
of her other commitments it was felt that she would have sufficient 
time to devote to her duties
sir 	 micha el 	h odgkinson 	
chairman
nomination committee 78 tui travel p l c annu al repo rt  accounts 2014
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d i v e rs it y
our diversity objectives were agreed in 2012 and these were considered 
again at the september 2014 meeting and confirmed as detailed below
• to achieve at least 25 female representation among the board’s 
membership by 2015
• to ensure that at least half of the initial applicant pool for board 
appointments consists of women
• to engage executive search firms who have signed up to the 
voluntary code of conduct on gender diversity and best practice
• to report annually against these objectives and other initiatives 
taking place within the company which promote gender 
international ethnic and other forms of diversity and
• to report annually on the outcome of the board evaluation the 
composition and structure of the board as well as any issues and 
challenges the board is facing when considering the diverse 
makeup of the company
as at 30 september 2014 the percentage of female representation 
among the board’s membership was 23 accounting for three of 
13 directors 2013 13 when making new appointments the board 
is committed to seeking directors with the right skillsets and gender 
balance in line with the 25 aspiration 
c o m m it tee 	 ef f ec tiv en ess 	 su r v e y
the results of the committee’s effectiveness survey were reviewed by 
the board at its meeting in june 2014 no major issues were raised
sir 	 micha el 	h odgkinson
chairman  senior independent director
3 december 2014
c o m m i t t e e 	 a c tiv iti es
during the year two new appointments were made to the board – 
val gooding and vladimir yakushev although the latter subsequently 
resigned on 24 march 2014 and did not attend any board meetings
four meetings of the nomination committee took place – in october 
and december 2013 and in march and september 2014 the following 
matters were considered
oc tober 	 20 1 3 	
the committee spent a considerable amount of time reviewing the 
individual skillsets of board members to enable us to ascertain where 
there could be gaps – either now or in the future following this debate 
the directors’ biographies were updated – see page ●64 for full details 
a more robust process was also agreed particularly in respect of the 
recruitment of independent nonexecutive directors
december 	 20 1 3 	
the appointments of val gooding and vladimir yakushev as additional 
nonexecutive directors were approved
mar ch 	 20 1 4	
additional threeyear terms for minnow powell and coline mcconville 
were approved 
specific guiding principles for the recruitment process relating to 
independent nonexecutive directors and executive directors were 
considered and approved for independent nonexecutive directors 
this included
• the use of executive search consultants who have signed up to the 
voluntary code of conduct on gender diversity and best practice 
• matters to take into account when preparing a role profile and 
• consideration of succession planning for independent nonexecutive 
directors as part of the annual talentsuccession planning review 
for executive directors the committee agreed to improve the 
nonexecutive directors’ visibility of senior executive succession 
planning and leadership development
september 	 20 1 4	
talent management and succession planning for key senior management 
roles was reviewed the focus was on a structured approach to 
performance and the development of talented individuals it had 
been the intention to consider the refreshment of the independent 
nonexecutive directors at this meeting but in view of the merger 
this was postponed as detailed above
nomination committee
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i am pleased to introduce the directors’ remuneration report for the 
year ended 30 september 2014
dir e c t o rs ’ 	 r e m u n e rati o n 	 p o li c y
last year we made a number of changes to our executive director 
remuneration framework these were set out in our remuneration 
policy report which was subject to a binding vote at our 2014 agm 
as a committee we were pleased with the level of support the policy 
report received and would like to thank our shareholders for this
we are not proposing to make any changes for the year ending 
30 september 2015 and therefore the policy approved last year will 
remain in force for convenience we have reproduced the policy on 
pages 81 to 88
i would like to highlight that the policy relates to tui travel plc and 
therefore we will remain subject to its provisions whilst we remain an 
independent company once the merger with tui ag completes the 
policy will cease to apply from the date of the merger onwards
the aims of our policy are
• to provide a package that is simple and transparent to shareholders
• to link a substantial proportion of the total remuneration 
package to the achievement of demanding longterm financial 
performance targets
• to provide an appropriate balance between fixed remuneration 
and variable performancerelated reward
• to align the executive directors’ interests with those of 
shareholders over the long term by building a significant 
shareholding in our business
• to set the total remuneration package at a level that reflects 
the competitive markets in which the group operates
• to enable recruitment retention and stability and
• to reinforce a highperformance culture throughout the group
we believe that these principles are fundamental in ensuring that our 
remuneration framework is fit for purpose and provides an appropriate 
alignment between pay and performance
c o m m it tee 	 a c tiviti es 	 du ri n g 	 th e 	 y ea r
t ui	 a g 	 merger
since the summer of 2014 the committee has been busy considering 
the impact of the merger on senior management remuneration at tui 
travel as part of these discussions sir mike hodgkinson our senior 
independent director has met with a number of major shareholders 
to discuss their expectations regarding the merger including from a 
remuneration perspective we have listened to shareholders’ views 
and have fed these into our discussions both internally and during our 
conversations with representatives of tui ag
items of discussion for the committee in relation to the merger included
• the treatment of outstanding employee share awards
• input to the tui ag supervisory board regarding corporate 
governance expectations and remuneration arrangements for the 
executive directors under the combined group and
• communication with impacted tui travel individuals regarding the 
merger negotiations and any remuneration implications
as a committee we are firmly of the view that no share awards should 
automatically vest as a result of the merger as such performance share 
plan psp and deferred annual bonus scheme dabs awards granted 
in 2012 and 2013 will remain outstanding and will continue in line with 
their original vesting timeframes and with performance conditions 
attached following completion some performance conditions may 
need to be amended to ensure that the targets remain appropriate in 
the combined group
the 2011 dabs and psp awards will vest in december 2014 in 
accordance with their original schedule
under the merger the combined group will be a germandomiciled 
company during our discussions with tui ag representatives we 
have provided input on uk institutional investor advisory body and 
shareholder expectations regarding corporate governance best practice 
as an example the committee notes the revised uk corporate 
governance code which was released by the financial reporting 
council in september 2014 and applies to reporting years beginning 
on or after 1 october 2014 following the yearend we have been 
considering the implications of the changes particularly in relation to 
clawback provisions we recognise the importance of companies being 
able to recover amounts which have been paid out where it becomes 
clear that they should not have been and we have discussed potential 
approaches for tui travel which would augment our current malus 
provisions tui ag is currently considering the framework for senior 
management remuneration and this will include discussions around 
the potential inclusion of clawback provisions
c o lin e 	 mcc o n v i lle
remuneration committee 80 tui travel p l c annu al repo rt  accounts 2014
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tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
the remuneration report for the financial year ended 30 september 
2014 has been prepared on behalf of the board by the remuneration 
committee the committee the report has been compiled taking into 
account the listing rules of the financial conduct authority the relevant 
sections of the companies act 2006 and the large and mediumsized 
companies and groups accounts and reports regulations 2008 
as amended the committee adopts the principles of good governance 
as set out in the uk corporate governance code 
this report will be subject to one vote at the agm on 10 february 2015 
– an advisory vote in relation to the statement by the remuneration 
committee chairman and the annual report on remuneration
gr oup 	 mana gement 	 board 	 r e view
following the review of executive director remuneration in 2013 
we have extended the framework across the full group management 
board gmb in aligning remuneration arrangements across our senior 
team we have adopted a consistent approach to remuneration at the 
top of our business this policy focuses the senior management team 
on key measures of business performance ensuring that all individuals 
are focused on the same corporate goals
v olk er 	 böt tcher
during the year we considered the arrangements for volker böttcher 
who stood down from the tui travel plc board as an executive director 
on 16 december 2013 he remains employed within the tui travel plc 
group of companies until 31 december 2014 
p ay 	 o utco m es 	 i n 	 th e 	 y ea r 	 end ed 	 3 0 	 septem ber 	 2 0 1 4
the company has continued to perform strongly led by the executive 
team and the remuneration received for the year ended 30 september 
2014 recognises this strong performance
we have delivered another year of outperformance against our 
growth roadmap achieving
• an underlying operating profit growth of 11 on a constant 
currency basis
• record customer satisfaction level of 79 maintained across our 
key markets 
• free cash flow increase of 12 on a constant currency basis and
• an available net cash position cash and cash equivalents less loans 
overdrafts and finance leases excluding restricted cash of £371m
as a result annual bonus payouts for executive directors reflect 
strong performance against financial targets and their individual 
personal objectives 
2011 dabs and psp awards are due to vest in full in december 2014 
for context over the performance period of these awards we have 
delivered strong eps growth and our market capitalisation has risen 
from under £2bn to well over £4bn this has resulted in excellent value 
creation for shareholders and we believe the reward for executive 
directors fairly reflects these achievements
lo o ki n g 	 a h ea d 	 to 	 th e 	 y ea r 	 end i n g 	 3 0 	 septem ber 	 2 0 1 5
as highlighted above we will continue to operate under our approved 
remuneration policy until the merger completes
in line with the executive directors’ remuneration policy salaries were 
reviewed on 1 october 2014 no revisions were made benefits pension 
provisions and opportunities under the annual bonus are unchanged
at this stage it is not currently planned to make any further tui travel 
psp awards to executive directors although this position may change 
if the merger is cancelled or substantially delayed
on behalf of the committee i thank you for your support and trust 
that you find the remuneration report informative
c o lin e 	 mcc o n v i lle
remuneration committee chairman
3 december 2014 81 tui travel p l c annu al repo rt  accounts 2014
 
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directors’ remuneration policy
this section sets out the policy which was approved by shareholders at the agm on 6 february 2014 the policy applies to any remuneration and 
loss of office payments made on or after 1 october 2014
e x e cutiv e 	 d i r ec to rs’ 	 f utu r e 	 p o l i c y 	t a bl e
e l em en t b a s e 	 s al ar y
purpose and link to strategy set at levels to attract and retain executive directors of the high calibre required to develop and deliver the strategy
to reflect the individual’s skills experience and role within the group
operation when determining salaries the committee typically takes into account
• business and individual performance
• salary levels at companies of a similar size industry global scope and complexity to tui travel plc and 
• the pay and conditions of employees elsewhere in the group 
paid monthly in cash
salaries are generally reviewed annually in october although an outofcycle review may be conducted  
if the committee determines appropriate a review will not necessarily lead to an increase in salary
maximum opportunity salary increases will typically be in line with the general level of increase awarded to other employees in the group
in exceptional circumstances at the committee’s discretion higher increases may be made these could include
• increase in the scope andor responsibility of the individual’s role
• development of the individual within the role andor 
• where a larger increase is considered necessary for the retention of an executive director
performance measures individual and business performance are considerations in deciding salary levels
e l em en t r e t i rem en t 	 b en e fi t s 	
purpose and link to strategy to attract and retain executive directors of the right calibre
to provide a marketcompetitive retirement benefit
to reassure executive directors about their provision in retirement
operation executive directors can choose to participate in the relevant local defined contribution pension or receive a cash 
allowance or a combination thereof 
william waggott has deferred pension entitlements under the final salary section of the tui pension scheme uk 
he ceased to be an active member on 3 september 2007 
when appointing new executive directors the committee may apply alternative pension provisions in such 
circumstances the committee will consider a range of factors including cost market practice and pension policy 
elsewhere in the group
maximum opportunity the maximum company contribution to an executive director’s pension or equivalent cash allowance may not  
exceed 50 of base salary
performance measures not performance related
e l em en t o t h e r 	 b e n e fi t s
purpose and link to strategy to ensure broad competitiveness with market practice
to support personal health and wellbeing
operation benefits provision is set at an appropriate market level taking into account the individual’s home jurisdiction the 
jurisdiction in which the individual is based market practice at similar companies and the level of benefits provided 
elsewhere in the group
the benefits to which executive directors are entitled include but are not limited to private medical insurance 
for the individual and his family life assurance permanent health insurance car provisionallowance holiday travel 
concessions up to an annual limit of £2500 and interestfree loans
global relocation support for up to five years and any associated costs or benefits including but not limited to 
housing benefits personal tax advice and school fees may also be provided if business needs require it the company 
may also provide tax equalisation arrangements
the committee may remove benefits that executive directors receive or introduce other benefits if considered 
appropriate to do so
executive directors are eligible to participate on the same basis as other employees in the company’s taxadvantaged 
share incentive plan or any other allemployee share plan operated in the future
maximum opportunity the maximum level of benefits provided to an individual executive director may not exceed £70000 per annum 
in exceptional circumstances at the committee’s discretion an exception to the above limit might be approved 
eg where global relocation of an executive director is considered necessary to deliver business objectives
participation by executive directors in the share incentive plan and any other allemployee share plan operated 
in the future is limited to the maximum award levels permitted by the relevant legislation
performance measures not performance related 82 tui travel p l c annu al repo rt  accounts 2014
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tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
e l em en t a n n u al 	 p e r for m an c e 	 b on u s 	 an d 	 de f e r re d 	 a nnu al 	 b onu s 	 s c he me
purpose and link to strategy to encourage and reward the attainment of challenging financial and strategic performance targets during an 
annual period
the performance measures closely align to the strategy of the business and shareholder value creation
the deferred element drives and rewards delivery of sustained longterm performance aligns executive director 
and shareholder interests and supports retention
operation performance is normally assessed over one financial year
25 of any bonus paid must normally be deferred into shares under dabs for three years participants may either 
voluntarily choose to defer up to an additional 25 or the committee may in certain circumstances determine that  
an additional 25 of the bonus should be deferred on a compulsory basis 
as outlined in the notes to this table the last awards of matching shares under dabs were made in december 2013 
the awards related to performance in the year ended 30 september 2013 these and other previous dabs awards 
currently outstanding will vest in subsequent years the vesting of matching awards is subject to continued 
employment achievement of performance conditions and compliance with the policy on payment for loss of office
dividend equivalent payments may be made equal to the amount of dividends that would have been payable during 
the period between the grant and vesting of an award
share awards are normally made in the form of nilcost options but may be awarded in other forms if appropriate 
such as conditional share awards nilcost options may normally be exercised until the 10th anniversary of the date 
of grant awards may also be satisfied in cash and may be granted to a director’s personal service company at the 
discretion of the committee
for bonuses awarded in respect of the year commencing 1 october 2014 and subsequently malus provisions apply 
these allow the committee to cancel or reduce vesting of unvested awards in certain circumstances including
• a misstatement of results that resulted in a bonus or award being paid at too high a level
• a material failure of risk management or health and safety
• serious reputational damage to the company andor
• personal misconduct
the committee may adjust and amend the terms of the awards in accordance with the plan rules
maximum opportunity the maximum bonus opportunity as a percentage of salary is up to 175 for the ceo and up to 140 for the 
other executive directors 
the last award of dabs matching shares was made in december 2013 the award related to performance in  
the year ended 30 september 2013 the maximum multiple was a ratio of four matching shares to one deferred share 
performance measures a nnu a l 	 b o nu s
the annual bonus is based on a mix of financial and individual business objectives with the majority of the weighting 
being given to financial metrics 
• financial performancerelated measures typically 75 to 85 of total are chosen carefully to ensure a strong link 
between reward and underlying company financial performance as an example these measures may typically 
include profit cash flow or other measures as appropriate
• individual performance 15 to 25 of total is measured through an assessment of comprehensive business 
deliverables financial targets personal performance and the achievement of specific individual objectives 
the exact measures weightings and targets are determined by the committee each year taking into account the 
group’s key strategic priorities and the approved budget for the year 
a sliding scale between 0 and 100 of the maximum award applies for achievement between threshold and 
maximum performance under the bonus plan  83 tui travel p l c annu al repo rt  accounts 2014
 
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e l em en t p e r for m an c e 	 s h are 	 pl an 	 p sp 
purpose and link to strategy to incentivise longterm value creation through the setting of stretching targets that ensure a strong link between 
reward underlying group financial performance and shareholder returns
to support recruitment and retention
operation awards are discretionary and normally vest subject to performance over a threeyear performance period
the vesting of awards is subject to continued employment or compliance with the policy on payment for loss of office
dividend equivalent payments may be made equal to the amount of dividends that would have been payable during 
the period between the grant and vesting of an award
share awards are normally made in the form of nilcost options but may be awarded in other forms if appropriate such 
as conditional share awards nilcost options may normally be exercised until the 10th anniversary of the date of grant 
awards may also be satisfied in cash and may be granted to a director’s personal service company at the discretion of 
the committee
for awards made in respect of the year commencing 1 october 2014 malus provisions apply these allow the committee 
to cancel or reduce vesting of unvested awards in certain circumstances including
• a misstatement of results that led to the award being granted at too high a level
• a material failure of risk management or health and safety
• serious reputational damage to the company andor
• personal misconduct
the committee may adjust and amend the terms of the awards in accordance with the plan rules
maximum opportunity the maximum award opportunity under the psp is 400 of salary in any financial year 
it is currently envisaged that awards will be made of up to an operational limit of 300 of salary although a larger 
award may be made in exceptional circumstances the committee also retains power to increase the operational limit 
to up to the maximum plan limit without shareholder approval if it considers it appropriate to do so in which case the 
committee will aim to engage with shareholders
performance measures awards vest based on performance against eps as defined in the plan rules relative tsr and roic measures over  
a threeyear period
normally these will be broadly weighted as below although the committee may vary the precise weightings as well 
as setting the specific targets for each measure as appropriate to reflect business and strategic priorities
• eps – 50
• relative tsr – 25
• roic – 25
to ensure that the psp awards vest only when shareholder value is being created awards will be subject to the 
achievement of an initial financial performance hurdle this will normally be based on a return on capital measure 
failure to achieve this hurdle will usually result in none of the award vesting
should the hurdle be achieved vesting for threshold performance will be up to but no more than 15 of the 
maximum award opportunity
if events happen that cause the committee to determine that the performance conditions are no longer a fair measure 
of the company’s performance the committee can amend the conditions as it determines to be appropriate with due 
regard to the best interests of shareholders
n otes 	 to 	 the 	e x ecutiv e 	 dir ec tors’ 	 f utur e 	 p olic y 	t able
legacy matters
the committee reserves the right to make remuneration payments 
and payments for loss of office including the exercise of any discretions 
available to the committee in connection with such payments that fall 
outside the policy where the terms of the payment were agreed before 
the policy came into effect or at a time when the relevant individual was 
not a director of the company and the payment was not in consideration 
for the individual becoming a director of the company 
for these purposes payments include the committee satisfying awards 
of variable remuneration and in relation to an award over shares the 
terms of the payment agreed at the time the award was granted the 
share awards under the psp and dabs held by the executive directors 
which were granted or which are anticipated to be prior to the policy 
coming into effect are set out in the annual report on remuneration
matching shares
the last award of dabs matching shares was made in december 2013 
the award related to performance in the year ended 30 september 
2013 the maximum multiple was a ratio of four matching shares to 
one deferred share these and other previous dabs awards that are 
currently outstanding will vest in subsequent years
matching awards are subject to performance measured over a three
year period the framework used for assessing performance is the same 
as that for psp awards if events happen that cause the committee to 
determine that any target is no longer a fair measure of the company’s 
performance the committee can amend the target if considered 
appropriate with due regard to the best interests of shareholders
selection of performance measures – annual bonus
the committee will choose annual bonus performance measures and 
targets which will provide an appropriate balance between incentivising 
executive directors to achieve financial targets for the year and driving 
the delivery of specific business deliverables strategic objectives and 
personal goals
selection of performance measures – psp
the company aims to create sustainable longterm shareholder value 
to encourage and reward this the company aims to align performance 
measures under the psp with the strategy of the business and set 
stretching targets achievement of which it considers should result in 
longterm value creation in particular
• financial performance measures – a direct measure of business health 
reflecting the strength of our underlying financial performance we 
take into account a number of internal and external reference points 
to ensure that targets are appropriately stretching and
• share price performance measures – the most focused indicator of 
our ultimate delivery of shareholder returns and intended to promote 
alignment between investors and executive directors targets are 
set taking into account a number of factors including reference to 
typical market practice they are set at a level which the committee 
considers represents stretching performance 84 tui travel p l c annu al repo rt  accounts 2014
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tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
deferred bonus awards not subject to performance measures
no further performance measures apply to deferred share awards 
granted under the dabs as these represent the deferral of annual 
bonus amounts that have already been earned
n o ne x ecutiv e 	 d i r ec to rs ’ 	 f utu r e 	 p o l i c y 	t a bl e
the board aims to recruit highcalibre nonexecutive directors with broad commercial international or other relevant experience the remuneration 
policy for nonexecutive directors with the exception of the chairman is set by the board having taken account of the fees paid in other companies 
of a similar size and complexity and the limits set by the articles of association the policy for the chairman is determined by the committee of 
which the chairman is not a member when recruiting nonexecutive directors the remuneration arrangements offered will generally be in line 
with those set out in the nonexecutive directors’ future policy table
a p p ro ac h 	 t o 	 s e t t ing 	 fe e s b a s i s 	 o f 	 fe e s o t he r 	 i t e m s
fees are set at an appropriate level to attract 
and retain highcalibre nonexecutive directors 
fees are reviewed at appropriate intervals 
taking into account the time commitment 
expected and practice in peer companies  
of a similar size sector and complexity
each nonexecutive director is paid a basic 
fee for undertaking nonexecutive director 
and board duties a higher fee is typically 
paid to the chairman of the board and the 
deputy chairman 
additional fees may also be paid for taking 
on committee responsibilities and other 
board duties 
the maximum aggregate fees for all non
executive directors allowed by the company’s 
articles of association is £15m 
nonexecutive directors’ fees are not subject  
to clawback or withholding arrangements
the nonexecutive directors do not participate 
in the annual bonus or longterm incentive plans 
and do not receive any pension benefits 
the group provides each nonexecutive 
director with relevant liability insurance  
for the duration of their appointment 
nonexecutive directors receive holiday 
concessions the maximum annual value is 
£2500 there are currently no other benefits 
provided to nonexecutive directors however 
the board may introduce additional benefits 
if it is considered appropriate to do so 
appr oa ch 	 to 	 th e 	 r ecru itm ent 	 a nd 	 r etenti o n 	 of	
e x ecutiv e 	 d i r ec to rs
we have a strong track record of succession planning and growing and 
promoting talent internally 
p r in cip les
when hiring a new executive director or promoting to the board from 
within the group the committee will offer a package that is sufficient 
to retain and motivate and if relevant attract the right talent whilst 
at all times aiming to pay no more than is necessary in determining 
an appropriate remuneration package the committee will take into 
consideration all relevant factors including but not limited to the impact 
on other existing remuneration arrangements the candidate’s location 
and experience external market influences and internal pay relativities
typically the new appointment will be in line with or be transitioned 
onto the policy as set out in the executive directors’ future policy 
table following any executive director recruitment the committee 
will include the rationale for the arrangements offered in the next 
remuneration report
c o m po n e nt s 	 a n d 	 a ppr oa ch
the package offered to a new executive director will typically include 
those elements listed within the executive directors’ future policy table 
in certain circumstances the committee may use other elements if it 
considers it appropriate to do so with due regard to the best interests 
of the shareholders in particular in considering its approach the 
committee will take into account factors which include but are not 
limited to typical market practice existing arrangements for other 
executive directors internal relativities and market positioning
r e m u n era ti o n 	 a rra n g em ent s 	 a cr oss 	 th e 	 gr o u p
our reward philosophy is consistent across the group namely that 
reward should support our business strategy and be sufficient to attract 
and retain highperforming individuals only success is rewarded within 
this framework there are differences for a range of reasons including 
global location and the local talent market 
• salaries and benefits – a range of factors are considered including 
business and individual performance the pay of other employees 
and external market data 
• annual bonus – consistent with the policy for executive directors 
annual bonuses across the group are typically linked to local 
business performance with a focus on underlying profit growth  
and performance against key strategic business objectives key 
management team members may also receive some of their annual 
bonus in shares which have to be deferred for three years in line 
with the policy for executive directors
• psp – a small number of senior executives who provide significant 
strategic input may be invited to participate in the psp in any year
• all employee share plans – a taxadvantaged share incentive plan is 
open to all uk eligible employees including executive directors on 
the same terms giving them the opportunity to become 
shareholders in the company participation in a global plan may  
be offered in the future 
psp and dabs rules
renewed and updated versions of the psp and dabs rules were 
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where expatriate appointments are made the committee may consider 
providing additional benefits where considered appropriate and in the 
company’s best interests to do so
in exceptional circumstances the committee may at its discretion 
offer a service contract that contains a longer initial notice period 
tapering down to 12 months over a set period of time if it is deemed 
to be in the best interests of our shareholders
b uy  o ut s
the committee may make awards on hiring an external candidate 
to ‘buyout’ forfeited remuneration arrangements in doing so the 
committee will typically take account of relevant factors including any 
performance conditions attached to these awards the form in which 
they were awarded eg cash or shares and the time over which they 
would have vested generally it is the committee’s intention that 
the buyout of awards will be made on a comparable basis to those 
forfeited and will be sharebased
in determining whether it is appropriate to offer a buyout the 
committee will ensure that any awards are made in the best interests 
of both the company and its shareholders and will give due regard 
to all relevant factors
maximum 	 le v el 	 of 	 variable 	 pa y
the maximum level of variable pay which may be awarded to new 
executive directors is limited to 575 of salary this excludes any 
buyout awards 
for an internal appointment any variable pay element awarded in 
respect of the previous role may either continue on its original terms 
or be adjusted to reflect the new appointment
it is appropriate for the committee to have discretion to make additional 
oneoff cash or sharebased awards to executive directors in order for 
the committee to be able to respond in exceptional and unexpected 
circumstances the company will make full disclosure of any such awards 
made including the rationale in the company’s directors’ remuneration 
report for the relevant financial year 
i l l ustra ti o ns 	 of 	 th e 	 a ppl i ca ti o n 	 of 	 th e 	e x ecutiv e 	 d i r ec to rs’	
r e m u n e rati o n 	 p o li c y
our remuneration arrangements have been designed so that a 
substantial proportion of pay is dependent on the achievement 
of stretching short and longterm performance targets
as part of this process the committee reviews on at least an annual 
basis the impact of different performance scenarios on the potential 
reward opportunity and payouts to be received by the executive 
directors the charts show hypothetical values of the remuneration 
package for executive directors in post on 30 september 2014 under 
three assumed performance scenarios
• minimum performance ie fixed elements of pay only with no 
bonus payout or vesting of longterm incentives
• performance in line with expectations assuming 50 payout 
under the annual bonus and threshold performance under the psp 
ie 10 vesting under the eps element and 15 vesting under the 
tsr and roic elements
• maximum performance assuming 100 payout under both the 
annual bonus and the psp
the charts are in line with our remuneration policy effective from 
1 october 2014 they have been updated from those published 
previously to reflect revised benefit costs matching share awards under 
dabs are excluded as the last award was made in december 2013
these charts are for illustrative purposes only and actual outcomes 
may differ from those shown
p eter 	 lon g
£0
£1000
£2000
£3000
£4000
£5000
£6000
minimum performance
£1302
performance in line
with expectations
£2364
maximum performance
£5339
£000s
fixed pay annual bonus lti
100 55
31
14
24
48
28
j ohan 	 lundgr en
£0
£500
£1000
£1500
£2000
£2500
£3000
£3500
£4000
£4500
minimum performance
£952
100 56
29
15
24
24
52
performance in line
with expectations
£1705
maximum performance
£4032
£000s
fixed pay annual bonus lti
william 	 w a g g ot t
£0
£500
£1000
£1500
£2000
£2500
£3000
£3500
minimum performance
£754
100 56
29
15
24
24
52
performance in line
with expectations
£1344
maximum performance
£3173
£000s
fixed pay annual bonus lti
notes
1 these illustrations of the application of the directors’ remuneration policy show the 
potential reward opportunity for the executive directors from 1 october 2014 onwards 
assuming psp awards are made at the operational limit of 300 of salary
2 minimum performance fixed remuneration is comprised salary standard benefits 
provision company car or car allowance medical insurance and holiday travel concessions 
based on maximum values for the year ended 30 september 2013 and employer pension 
contributionallowance
3  performance in line with expectations is comprised fixed remuneration annual bonus at 50 
of maximum performance levels and longterm incentives at threshold performance levels
4  maximum performance is comprised fixed remuneration annual bonus at maximum 
performance levels and longterm incentives at maximum performance levels
5 all scenarios assume no share price appreciation during the vesting period therefore 
depending on share price performance the actual outcomes could be higher or lower
6 allemployee share plans have been excluded as have any legacy awards which 
executive directors may hold 86 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
d i r ec to rs’ 	 ser vi ce 	 agr eem ent s	
in line with best corporate practice for listed companies the committee’s 
policy is for executive directors to have rolling contracts with a 12month 
notice period although in some recruitment circumstances a longer 
notice period may be offered tapering down to 12 months over a set 
period of time 
the following table sets out a description of any obligations on the 
company contained in the uk executive directors’ service contracts 
which could give rise to or impact remuneration payments or payments 
for loss of office
n o t ic e 	 p e r io d 12 months’ notice by the company and six months’ 
notice by the executive director
e x pir y 	 d at e rolling service contract no fixed expiry date
b a s ic 	 s al ar y contractual entitlement to receive a basic salary 
and for a salary review to take place each year 
the company is not obliged to increase an 
executive director’s salary following a review 
pen s ion	 	
c o n t r i b u t io n s
pension contribution of up to 50 of basic  
salary for peter long and 33 of basic salary  
for will waggott and johan lundgren
c o n t r ac t u a l	 	
b e ne fi t s
contractual entitlement to
• private medical insurance
• permanent health insurance
• sick pay 
• life assurance 
• company carallowance and
• holiday travel benefits
a nnu a l 	 b o nu s contractual entitlement to participate in the annual 
bonus scheme dependent on performance factors 
l o n g  t e r m	
inc e n t i ve 	 p l an s
contractual entitlement to be considered for 
participation in the psp and dabs subject to the 
company’s policy in relation to such schemes and 
to the approval of the committee 
r e t ire me n t 	 d at e there is no default retirement age requests  
for retirement are considered on a casebycase 
basis it is anticipated that at least 12 months’ 
notice will be provided albeit that the contractual 
requirement on the part of an executive director 
to give notice is only six months
t e r min at io n	 	
p ay m e n t s
the director will be paid his salary and any other 
contractual benefits in respect of the relevant 
notice period if the director is placed on notice 
he may be eligible to be paid an annual bonus 
equivalent to 50 of the maximum amount that 
could have been awarded had he worked his notice
the service contract for any new executive directors will not include 
any provision that is more generous than those listed above
the obligations on the company which could give rise to or impact 
remuneration payments or payments for loss of office contained in 
volker böttcher’s service contract are set out below dr böttcher’s 
service contract is governed by german law
n o t ic e 	 p e r io d 12 months’ notice by the company and 12 months’ 
notice by the executive director 
e x p ir y 	 d at e rolling service contract no fixed expiry date 
fixed retirement date
b a s ic 	 s al ar y contractual entitlement to receive a basic salary 
and for a salary review to take place each year 
the company is not obliged to increase 
dr böttcher’s salary following a review 
pen s ion	 	
c o n t r i b u t io n s
pension contribution of up to 25 of basic salary
c o n t r ac t u a l	 	
b e ne fi t s
contractual entitlement to
• accident insurance to cover death or invalidity
• sick pay 
• company carallowance and
• holiday travel benefits
a nnu a l 	 b o nu s contractual entitlement to participate in the annual 
bonus scheme dependent on performance factors 
l o n g  t e r m	
inc e n t i ve 	 p l an s
contractual entitlement to be considered for 
participation in the psp and dabs subject to the 
company’s policy in relation to such schemes and 
to the approval of the committee 
r e t ire me n t 	 d at e dr böttcher’s contract automatically expires at the 
end of the month in which he reaches the age of 63 
t e r min at io n 	 	
p ay me n t s
if dr böttcher is placed on notice he may be eligible 
to be paid an annual bonus equivalent to at least 
50 of the maximum amount that could have been 
awarded had he worked his notice the normal 
award required under german case law is the 
average of the previous threeyears’ bonus awards
the company may also apply a noncompete 
clause in such circumstances under the german 
commercial code dr böttcher would be entitled 
to 50 of the annual remuneration he last received 
in his role including variable remuneration as 
compensation this would be paid in 12 monthly 
instalments and would be subject to mitigation 
compliance with the german commercial code  
is a legal obligation
in a termination situation the committee would 
strive to balance the interests of the company 
with german legislative requirements
executive directors are able to accept nonexecutive appointments 
outside the company as long as this does not lead to a conflict of 
interest with the consent of the board as such appointments can 
enhance their experience and add value to the company any fees 
received excluding positions where the executive director is appointed 
as the company’s representative are retained by the executive director  87 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
tt27  ar 2014  13112014  proof 1
executive directors are entitled to 12 months’ base pay and contractual 
benefits if served notice by the company the company is entitled 
to six months’ notice of termination by uk executive directors and 
12 months by dr böttcher 
in the normal course of events the executive director will work his 
notice period
in the event of termination for cause eg gross misconduct neither 
notice nor payment in lieu of notice pilon will be given and the 
executive director will cease to perform his services immediately
in the event of termination for other reasons than cause eg resignation 
and the individual being requested to cease working before the end 
of his notice period pilon may be payable if a portion of the notice 
period is served the payment will be reduced on a prorata basis 
payments may be made on a phased basis and may be subject to 
mitigation alternatively rather than making a pilon the company 
may instead place an executive director on garden leave for the 
duration of some or all of their notice period
in redundancy situations the committee will comply with prevailing 
relevant legislation in addition and consistent with market practice 
the company may pay a contribution towards the executive director’s 
legal fees for entering into a statutory agreement and may pay a 
contribution towards fees for outplacement services as part of a 
negotiated settlement 
there is no provision for additional compensation on termination 
following a change of control nor liquidated damages of any kind 
payment may also be made in respect of accrued benefits including 
untaken holiday entitlement
executive bonus and sharebased schemes will be managed as follows
the following table sets out a description of any obligations on the 
company contained in the letters of appointment of the nonexecutive 
directors which could give rise to or impact on remuneration payments 
or payments for loss of office
n o t ic e 	 p e r io d three months’ notice by either party 
e x p ir y 	 d at e rolling appointment typically expected to last 
six years save for minnow powell janis kong 
coline mcconville and val gooding whose 
letters of appointment are subject to a three
year fixed term
f e e s 	 an d 	 b e n e fi t s entitled to receive fees together with such 
holiday concession arrangements as may 
from time to time be made available to 
directors nonexecutive directors are covered 
by the company’s directors’ indemnity 
insurance
p e n s io n 	 c o n t r i b u t io n s none
an nua l 	 bo nus 	 a nd 	 lo n g
term 	 incent ive 	 plan s
not eligible to participate in any annual bonus 
scheme or longterm incentive plan
t e r min at io n 	 p a y me n t s not entitled to any compensation for loss 
of office
all executive director service contracts and nonexecutive director 
letters of appointment are available for inspection at the company’s 
registered office during normal hours of business and will also be 
available at the company’s agm until the close of the meeting
p o l i c y 	 o n 	 paym ent 	 f o r 	 l oss 	 of 	 of fice 	
we are committed to ensuring a consistent approach so that we do not 
pay more than is necessary in the event of an early termination of a 
contract the policy is to seek to minimise any liability when managing 
such situations the committee takes a range of factors into account 
including contractual obligations shareholder interests organisational 
stability and the need to ensure an effective handover
g oo d 	 l e ave r s o t he r 	 le ave r s
a nn u al 	 p e r for m an c e 	 b on u s the committee considers it appropriate for 
the company to have discretion regarding the 
payment of a full or partial bonus in termination 
scenarios 
when determining whether an executive 
director is a good leaver the committee  
will consider contractual terms personal 
performance the generally accepted definition 
of a good leaver and other factors outlined 
below
unless the committee exercises its discretion 
to treat the executive director as a good leaver 
no bonus will be payable
p sp 	 an d 	 m at c hing 	 aw ard s 	 un de r 	 t h e	
e x i s t i ng 	 d a b s
participants will be a good leaver on ceasing 
employment due to injury disability illhealth 
death redundancy or the sale of the company 
or business in which the participant is employed
awards held by good leavers will normally vest 
after three years prorated for time and subject 
to the relevant performance measures
the committee has discretion to accelerate vesting 
to the date employment ends 
the committee also has discretion to waive the 
time prorating requirement 
unvested awards will lapse in full where the 
termination is on grounds of gross misconduct
in other circumstances unvested awards will 
lapse in full unless the committee applies 
discretion to treat the executive director  
as a good leaver
de f e r re d 	 a n n u al 	 b onu s 	 s c h e me 	 d a b s 	 unvested deferred share awards which 
represent deferrals of earned bonus vest in  
full on ceasing employment other than on 
grounds of gross misconduct either at the date 
of termination or on the normal vesting date  
at the discretion of the committee
unvested deferred share awards will lapse in full 
where the termination is on grounds of gross 
misconduct 88 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
in considering the exercise of discretion as set out above the committee 
will take into account all relevant circumstances in doing so factors that 
the committee may take into account shall include but not be limited to 
considering the best interests of the company whether the executive 
director has presided over an orderly handover the contribution of the 
executive director to the success of the company during their tenure 
the need to ensure continuity the need to compromise any claims 
that the executive director may have whether the executive director 
received a pilon payment and whether had the executive director 
served out their notice a greater proportion of the outstanding award 
may have vested 
on a corporate event affecting the company the rules of the psp and 
dabs as approved at the agm on 6 february 2014 apply a corporate 
event will include
• a takeover of the company 
• a company or a person already having control making a general 
offer to acquire shares in the company 
• a voluntary windingup and 
• under the rules of the new plans if the board so determines 
a demerger or other similar event materially affecting the value 
of shares 
in summary awards under the psp and matching awards under the 
dabs will vest subject to the performance conditions and unless the 
board determines otherwise time prorating deferred awards under 
the dabs which represent previously earned bonuses will vest in full 
on a variation of share capital a demerger a sale of a substantial part 
of the group’s business or similar event the committee may make such 
adjustment to awards as it considers appropriate
in respect of the share incentive plan the same leaver conditions will 
be applied as those applied to all employees
in the event of death in service the arrangements for the executive 
directors provide lump sums for the purchase of dependants’ pensions 
of the greater of eight times salary or the value of the pension fund 
in addition to which a lump sum of four times salary is payable 
the company may enter into new contractual arrangements with an 
executive director in connection with the termination of employment 
including but not limited to settlement of claims confidentiality 
restrictive covenants andor consultancy arrangements where  
the committee determines it necessary or appropriate to do so 
appropriate disclosure of any such arrangement will be made
c o nsi d era ti o n 	 of 	 co nd iti o ns 	 else wh er e 	 i n 	 th e 	c o m pa n y
the committee has oversight of the main compensation structures 
throughout the group and actively considers the relationship between 
general changes to employees’ remuneration and executive director 
reward when considering potential changes to executive director 
remuneration the committee is provided with comparative employee 
information eg average salary reviews across the group
the committee does not consider it appropriate to consult directly with 
employees when formulating executive director reward policy however 
it does take into account information provided by the group hr director 
and feedback from our global employee satisfaction survey which 
includes questions about remuneration
c o nsi d e rati o n 	 o f 	 sha r e h o l d e r 	 v i ews
the committee is strongly committed to an open and transparent 
dialogue with shareholders on remuneration matters we believe that 
it is important to meet regularly with our key shareholders to understand 
their views on our remuneration arrangements and discuss our approach 
going forward 
the committee will continue to engage with shareholders going forward 
and will aim to consult on any material changes to the application of the 
approved policy or proposed changes to the policy 
the committee may make minor changes to the policy that do not 
have a material advantage to executive directors without seeking 
shareholder approval
additional information
the following points are included for ease of reference 
a statement regarding the directors’ remuneration policy was 
published on the company’s website on 22 january 2014 the page 
numbers refer to the annual report and accounts for the year 
ended 30 september 2013
service contracts
as set out on page 86 under the terms of their existing service 
contracts the three ukbased executive directors may be eligible to 
receive an annual bonus equivalent to 50 of the maximum amount 
that could have been awarded had they worked their notice period  
as has previously been communicated to shareholders this is a legacy 
issue contained within current contracts and will not be incorporated in 
service contracts for new appointments in a payment in lieu of notice 
situation contractual termination arrangements for new appointments 
will be restricted to salary and contractual benefits during the relevant 
notice period
recruitment policy
on page 85 we stated that the committee’s intention is for the 
maximum level of variable pay to be limited to 575 of salary 
representing the current maximum opportunity under the annual bonus 
and psp in addition it was considered appropriate for the committee 
to have discretion to make further oneoff cash or sharebased awards 
to executive directors on recruitment to enable the committee to 
respond in exceptional and unexpected circumstances the committee 
considered that this was in the best interests of the company and our 
shareholders allowing it to retain flexibility to act appropriately in a 
commercial recruitment situation
following discussions with shareholder representatives in order to 
provide additional comfort in how our recruitment policy will operate 
the committee has agreed that the total maximum level of variable 
remuneration which may be offered in a recruitment event will be 
limited in all cases to 725 of base salary excluding buyout awards
we reiterate that other than in truly exceptional and unexpected 
circumstances we would continue to expect variable pay on 
recruitment not to exceed 575 of salary excluding buyouts 89 tui travel p l c annu al repo rt  accounts 2014
 
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business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  13112014  proof 1
the annual report on remuneration for the year ended 30 september 2014
the following section sets out the directors’ remuneration for the financial year ended 30 september 2014 the following information has been 
audited by pricewaterhousecoopers llp
• single total figure of remuneration
• retirement benefits
• scheme interests awarded between 1 october 2013 and 30 september 2014
• payments to past directors
• loss of office payments and
• directors’ shareholdings
si n gl e 	 tota l 	 figu r e 	 of 	 r em u n era ti o n 	
e x e cuti v e 	 dir e c to r s
y  e 	
3 0 	 s e p	
2014
ye 
30 sep 
2013
y  e	
3 0 	 s e p	
2014
ye 
30 sep 
2013
y  e	
3 0 	 s e p	
2014
ye 
30 sep  
2013
y  e	
3 0 	 s e p	
2014
ye 
30 sep 
2013
y  e	
3 0 	 s e p	
2014
ye 
30 sep 
2013
y  e	
3 0 	 s e p	
2014
ye 
30 sep 
2013
y  e	
3 0 	 s e p	 	
2014
ye 
30 sep  
2013
executive 
directors
s al ar y
£000
salary
£000
b e n e fi t s	
 e x c l u din g	
re t i re m e n t	
b e n e fi t s
£000
1
benefits 
excluding 
retirement 
benefits
£000
a nnu a l	
b o n u s	
 c a s h 	 	
de fe r r e d 
£000
2
annual 
bonus 
cash  
deferred
£000
da b s	
 m at c hin g	
a w ard s 
£000
4 5
dabs 
matching 
awards – 
restated
£000
3
	 p s p	
£000
4 5
 psp
restated
£000
3
re t i rem en t	
b e ne fi t s
£000
retirement 
benefits
£000
t ot al	
r emu n er a t i o n 	
£000
total 
remuneration
restated 
£000
peter  
long 850 850 26 26 1458 1369 6729 4915 3845 2808 425 425 13333 10393
johan 
lundgren 700 700 61 71 980 902 3284 2399 3167 999 231 231 8423 5302
william 
waggott 550 550 21 19 770 739 3103 1863 1493 971 182 182 6119 4324
volker 
böttcher
67 
71 458 4 22 102 392 534 1840 223 766 18 114 952 3592
total 2171 2558 112 138 3310 3402 13650 11017 8728 5544 856 952 28827 23611
notes
1 benefits for the year ended 30 september 2014 include where used holiday travel concessions
2 annual bonus figures include cash and the proportion that is deferred for at least three years the deferred element is not subject to performance conditions
3 in accordance with the relevant legislation the anticipated value of the dabs and psp shares that vested on 10 december 2013 was estimated in the annual report for the year ended  
30 september 2013 using a share price of 36500p this being the threemonth average for the year ended 30 september 2013 the actual share price at the date of vesting was 37830p 
4 the anticipated value of the dabs and psp shares that will vest for the threeyear period ended 30 september 2014 has been calculated using a share price of 37254p this being the 
threemonth average up to 30 september 2014
5 awards vest after the approval of the financial statements for the year ended 30 september 2014 and such awards relate to a performance period ending on the same date as those 
financial statements therefore the figures in the 2014 dabs and 2014 psp columns relate to awards that will vest in december 2014
6 dr böttcher stood down from the board as an executive director on 16 december 2013 each element that comprises his single total figure of remuneration is prorated and covers the 
period 1 october to 16 december 2013 dr böttcher’s salary was revised on 1 october 2013 to €400000 previously €545000 in line with the directors’ remuneration policy published 
last year and as required by german case law his bonus payment for the year ended 30 september 2014 is equivalent to the average of his previous threeyears’ bonus awards ie 
€578441 in accordance with the rules of the psp and dabs dr böttcher will be a good leaver with respect to his awards 
7 dr böttcher is paid in eur payments in the table above have been converted at 11896 to 1 gbp being the average exchange rate for the period 1 october 2013 to 31 december 2013
alignment of pay with performance
the remuneration policy at tui travel places substantial emphasis on 
variable pay the committee considers that this is aligned with the 
best interests of shareholders and ensures that executive directors 
will only receive significant remuneration for exceptional performance
over the last three years the company has continued to perform 
strongly led by the executive team for example we have delivered 
excellent eps growth over this period and this has driven strong 
share price performance this has resulted in our market capitalisation 
increasing from under £2bn to well over £4bn over these three years 
we consider that the remuneration received for the year ended 
30 september 2014 recognises the management team’s continued 
excellent performance for example for peter long
• 90 of his total remuneration was delivered in variable pay and
• of this variable amount over half was directly due to the significant 
increase in our share price over the last three years
this demonstrates the strong alignment of our directors’ packages 
with the shareholder experience
0 1000 2000 3000 4000 5000 6000 7000 8000
psp £2145 £1700
matching
plan
£2975 £3754
value of share vest in £000s
performance element share appreciation element 90 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
benefits excluding pension
benefits incorporate tax assessable benefits arising from the 
individual’s employment
• peter long carcar allowance private healthcare cover and holiday 
travel concessions
• johan lundgren carcar allowance private healthcare cover holiday 
travel concessions and school fees £42760 
• william waggott carcar allowance private healthcare cover and 
holiday travel concessions retirement benefits do not include his 
deferred pension entitlements under the final salary section of the 
tui pension scheme uk please refer to the retirement benefits 
section for further details
retirement benefits
total pension contributions or allowances accrued to the year ended 
30 september 2014 were £856000 payments totalling £1037000 
have been made as at the date of this report these payments include 
contributions for the year ended 30 september 2013 which were accrued 
but not paid at the date of the 2013 annual report and accounts
william waggott has deferred pension entitlements under the final 
salary section of the tui pension scheme uk he ceased to be an 
active member on 3 september 2007 and therefore did not accrue 
further benefits during the year the accrued benefits including 
deferred revaluation to 30 september 2014 are a pension of £63879 per 
annum payable from age 62 the transfer value as at 30 september 
2014 calculated on the current basis is £1594633 the transfer value 
as at 30 september 2013 calculated on the basis in force at that time 
was £1402198 the only change in accrued benefits over the financial 
year is another year of deferred revaluation fixed at 5 per annum 
the accrued benefits at the start of the year were £60837 per annum 
so there has been an increase in pension of £3042 over the year no 
contributions were made in the year ended 30 september 2014
entitlement under the executive directors’ pension arrangements 
is not enhanced in an early retirement situation
annual bonus
the annual bonus is driven by the achievement of group business 
and individual targets which are weighted for each executive director 
for the year ended 30 september 2014 the achievement of financial 
targets represented up to 80 of the bonus awarded with the balance 
being determined by the achievement of individual objectives 
the financial element is weighted to the achievement of profit and cash 
targets these are set by the committee annually with reference to the 
company’s fiveyear strategic plan analyst profit forecasts and cash 
flow performance the targets are designed to be stretching drive 
improved results and align delivery with shareholders’ expectations 
the individual business objectives were determined with consideration 
to the strategic goals set for each executive director by the board 
performance against these objectives was reviewed by the committee 
against quantifiable individual performance metrics further information 
regarding these targets can be found under each graph
as reported earlier the company has had a successful year and this 
is reflected in the level of bonus awards 
we have delivered underlying profit of £654m and free cash flow of 
£477m both at constant currency rates these represent growth of 
11 and 12 respectively from last year delivering maximum financial 
performance we remain confident of delivering on our fiveyear 
annualised target of 710 underlying operating profit growth at 
constant currency rates
the specific financial targets under the annual bonus are considered by 
the committee to be commercially sensitive although the committee 
keeps this position under review and aims to provide shareholders with 
as much context as possible as to how the performance outcomes are 
aligned with the remuneration received by directors
overall bonuses for year ended 30 september 2014
executive directors
maximum bonus 
as  of salary
total bonus as 
 of maximum
total bonus as 
 of salary
total bonus
£000
peter long 175 98 172 1458
johan lundgren 140 100 140 980
william waggott 140 100 140 770
the graphs below provide more information about the awards 
peter long
0 20 40 60 80 100
group
profitcash
individual
business
objectives
80
20
100
90
weighting threshold maximum
bonus
achieved
as  of 
maximum
individual business objectives included review of strategic options to 
maximise growth and value of the online accommodation businesses 
continued focus on businesses in turnaround eg france and brand 
strategy review
johan lundgren
0 20 40 60 80 100
group
profitcash
individual
business
objectives
80
20
100
100
weighting threshold maximum
bonus
achieved
as  of 
maximum
individual business objectives included continued delivery of one 
mainstream digital transformation and achieving 3 underlying 
operating margin
william waggott
0 20 40 60 80 100
group
profitcash
individual
business
objectives
80
20
100
100
weighting threshold maximum
bonus
achieved
as  of 
maximum
individual business objectives included decrease in average net debt 
restriction of overall group sdis to less than £20m sap programme 
management and review of strategic options to maximise growth and 
value of the online accommodation businesses
under the dabs up to 50 of each executive director’s annual 
performance bonus will be deferred due to the practical implications 
of the merger it is currently expected that dabs awards to be made 
in december 2014 will be made as cashsettled awards over notional 
shares on materially the same terms as the scheme rules in line with 
the policy communicated to shareholders last year no matching dabs 
awards will be made in respect of the year ended 30 september 2014 91 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
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tt27  ar 2014  13112014  proof 1
longterm incentives
the vesting of the matching shares element of dabs and psp awards 
is subject to achievement of the following performance conditions over 
the threeyear performance period and continued employment
the committee assesses the earnings per share eps and the 
return on invested capital roic tests based on audited information 
independent calculations of total shareholder return tsr 
performance for outstanding awards are performed by deloitte
following our strong performance over the last three years the 
performance conditions attached to the deferred annual bonus 
scheme dabs and performance share plan psp awards made 
on 7 december 2011 were achieved in full and these awards will vest 
on 8 december 2014 
performance measures 
m e a s u re t arget re s u l t weig ht ing
a performance hurdle of roic requiring roic to be on average at least equal to wacc this condition was achieved
growth in the company’s eps  
as defined in the plan rules in relation 
to the growth in uk rpi 
average annual eps growth in excess of 
rpi growth of
• less than 4 results in nil achievement
• between a threshold level of 4 to 13 
results in achievement between 10 
and 100 on a straightline basis
• greater than 13 results in 
100 achievement
eps growth in excess of rpi for the 
threeyear performance period was 8810
this performance measure was therefore 
achieved at 100
50
the company’s tsr performance relative 
to an index of 23 international travel and 
leisure companies which are considered the 
most relevant peers in terms of size global 
scope business type and exposure to 
external factors 
average relative tsr per annum 
• below index results in nil achievement
• between index and index 8 per 
annum results in achievement between 
15 and 100 on a straightline basis
• at or above index 8 per annum 
results in 100 achievement
the company’s achieved relative tsr 
performance was 17468 over the three
year performance period with the peer 
group average achieving 9199
this represents outperformance above the 
required hurdle of 11796 by 4808 this 
performance measure was therefore 
achieved at 100
25
roic performance in relation to 
roic targets
average roic performance in excess 
of roic targets
• less than 141 results in nil achievement
• between a threshold of 141 to 156 
results in achievement between 15 
and 100 on a straightline basis
• greater than 156 results in 
100 achievement
roic performance in excess of roic 
targets for the threeyear performance 
period was 1937
this performance measure was therefore 
achieved at 100
25
the companies included in the tsr index are
1 aer lingus group 13 international consolidated airlines group
2 air berlin 14 kuoni group
3 air franceklm 15 national express group
4 carnival 16 norwegian air shuttle
5 club mediterranee 17 pierre  vacances
6 deutsche lufthansa 18 pricelinecom
7 easyjet 19 royal caribbean cruises
8 expedia 20 ryanair holdings
9 finnair 21 stagecoach group
10 first group 22 thomas cook group
11 flight centre 23 wotifcom holdings
12 hertz global holdings 92 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
si n gl e 	 tota l 	 figu r e 	 of 	 r em u n era ti o n 	
n o n e x e cuti v e 	 dir e c to r s
y  e	 	
3 0 	 s e p 	 2 01 4
ye  
30 sep 2013
y  e	 	
3 0 	 s e p 	 2 01 4
ye  
30 sep 2013
nonexecutive directors
fe e s
£000
fees
£000
t otal	
r emu n era ti o n
£000
total 
remuneration
£000
friedrich joussen 
chairman 300 163 300 163
sir michael hodgkinson 
deputy chairman 200 200 200 200
horst baier 55 55 55 55
tony campbell
1
11 55 11 55
sebastian ebel 55 29 55 29
val gooding 36 – 36 –
rainer feuerhake – 20 – 20
dr michael frenzel 
outgoing chairman – 145 – 145
janis kong 55 55 55 55
coline mcconville 70 65 70 65
minnow powell 75 70 75 70
dr erhard schipporeit 55 55 55 55
dr albert schunk 55 55 55 55
harold sher
2
53 55 53 55
vladimir yakushev
3
8 – 8 –
total 1028 1022 1028 1022
notes
1 tony campbell retired from the board with effect from 16 december 2013 
2 harold sher retired from the board with effect from 18 september 2014
3 vladimir yakushev was appointed to the board on 7 february 2014 he resigned  
on 24 march 2014
nonexecutive directors are appointed with three months’ notice 
by either party minnow powell coline mcconville janis kong and 
val gooding were appointed for a threeyear term which expires 4 april 
2017 21 september 2017 29 may 2015 and 7 february 2017 respectively 
but includes the three months’ notice on either side provision at the end 
of each term their reappointment is considered by the nomination 
committee in respect of coline mcconville and minnow powell their 
reappointments were considered and unanimously recommended 
to the board at a meeting of the nomination committee held on 
26 march 2014
a review of nonexecutive director fees was carried out during the 
year taking into account the scope of the roles at tui travel and the 
time commitment expected the review highlighted that the fees for 
the chairmen of the audit and remuneration committees were lower 
than their market comparators the decision was taken to increase the 
fees for those chairmen by £10000 each with effect from 1 april 2014 
the table below sets out the nonexecutive director fees framework 
as at 30 september 2014
annual fee
friedrich joussen – chairman £300000 
sir michael hodgkinson –  sid and nomination 
committee chairman £200000 
minnow powell – audit committee chairman £80000 
coline mcconville – remuneration committee chairman £75000 
horst baier £55000 
sebastian ebel £55000 
val gooding £55000 
janis kong £55000 
dr erhard schipporeit £55000 
dr albert schunk £55000 
sch em e 	 i nter est s 	 a wa r d ed 	 bet w een 	 1 	 o c to ber 	 2 0 1 3 	 a n d	
3 0 	 septem ber 	 2 0 1 4
awards under the dabs and psp were made on 12 december 2013  
in respect of the preceding financial year 
under the dabs each executive director deferred 50 of their annual 
bonus into deferred shares for a threeyear period dabs matching 
shares were awarded at a ratio of four matching shares to one deferred 
share the vesting of the dabs matching shares is subject to continued 
employment and the achievement of stretching performance conditions 
over a threeyear period to 30 september 2016
d abs 	 deferr ed 	 and 	 matchin g 	 a wards
deferred awards made on 12 december 2013 are summarised below
executive directors
number of nilcost share 
options awarded
face value of award 
£000
peter long 181546 684
johan lundgren 119607 451
william waggott 98063 370
matching awards made on 12 december 2013 are summarised below
executive directors
number of 
nilcost 
share options 
awarded
face value 
of award 
£000
threshold value 
of award 
£000
threshold value 
of award as  
 of max award
peter long 726184 2737 342 125
johan lundgren 478428 1803 225 125
william waggott 392252 1478 185 125
notes
1 dabs awards were allocated on 12 december 2013 using the midmarket share price 
3769p of tui travel plc shares on the date immediately preceding the allocation date
2 as disclosed last year the last grant of matching awards was made in december 2013
3 no dabs award was made to volker böttcher
psp
under the psp shares were awarded on 12 december 2013 which are 
also subject to continued employment and the achievement of stretching 
performance conditions over a threeyear period to 30 september 2016 
the awards are summarised below 
executive directors
number of 
nilcost 
share 
options 
awarded
face value  
of award 
£000
face value 
of award as 
 of base 
salary
threshold 
value of 
award £000
threshold 
value of 
award as  
of max 
award
peter long 338286 1275 150 159 125
johan lundgren 185725 700 100 88 125
william waggott 145927 550 100 69 125
notes
1 psp awards were allocated on 12 december 2013 using the midmarket share price 
3769p of tui travel plc shares on the date immediately preceding the allocation date
2 no psp award was made to volker böttcher
shar e 	i ncentiv e 	 p lan
peter long johan lundgren and william waggott are participants in 
the company’s taxadvantaged share incentive plan during the year 
ended 30 september 2014
• peter long and william waggott did not purchase any partnership 
shares and were not awarded any matching shares in the year
• johan lundgren purchased 443 partnership shares at a share price 
of 40600p and was awarded 111 matching shares at a share price 
of 40600p
• under the dividend reinvestment plan open to all shareholders 
under the same terms on 4 october 2013 and 10 april 2014 william 
waggott was allocated 44 and 99 additional shares respectively  93 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  13112014  proof 1
p aym ent s 	 to 	 past 	 d i r ec to rs
aside from the arrangements for volker böttcher outlined below there 
have been no payments made to directors for loss of office
arra n g em ent s 	 f o r 	v o l ker 	 b öt tch er
volker böttcher stood down from the tui travel plc board as an 
executive director on 16 december 2013 he remains employed within 
the tui travel plc group of companies until 31 december 2014 during 
his notice period dr böttcher continues to be paid in line with the 
terms of his service agreement entitled to receive his normal benefits 
and to participate in his existing pension arrangements 
dr böttcher’s salary was revised on 1 october 2013 to €400000 
previously €545000 a bonus will be paid in respect of the financial 
year ended 30 september 2014 as required under german law and in 
line with the approved directors’ remuneration policy published last 
year this payment will be equivalent to the average of his previous 
threeyears’ bonus awards
as at 30 september 2014 dr böttcher had the following awards 
outstanding under the psp and dabs
psp shares 
nilcost options award date
market price  
per share at award
planned  
vesting date
283843 071211 16470p 081214
dabs shares 
nilcost options award date
market price  
per share at award
planned  
vesting date
170306 071211 16470p 081214
681224 071211 16470p 081214
87886 061212 28400p 061215
351544 061212 28400p 061215
in line with the rules of the psp and dabs dr böttcher will be a good 
leaver with respect to his awards deferred share awards under the 
dabs which represent the deferral of bonuses previously earned will 
vest in full at the normal vesting date matching share awards under the 
dabs and share awards under the psp will vest on the normal vesting 
date subject to the achievement of the applicable performance criteria 
matching share awards that are not vested by 31 december 2014 will be 
prorated for service accrued within the threeyear performance period 
from the date of award to 31 december 2014 consequently 107416 
matching share awards will lapse the last psp award to dr böttcher 
was made in december 2011 therefore there will be no unlapsed psp 
awards on 31 december 2014
no further payments for loss of office have been made
s ta tem ent 	 of 	e x ecutiv e 	 d i r ec to rs ’ 	 sha r eh o ld i n g 	 a nd 	 sha r e 	 i nter est s	
the executive directors are subject to a shareholding obligation that increased on 1 october 2014 peter long is expected to hold shares at least 
equal to 400 of his base salary the remaining executive directors are expected to hold shares at least equal to 200 of base salary as shown 
below the executive directors in post on 30 september 2014 comply with the revised holding requirement volker böttcher is not expected to 
comply with the shareholding obligation during his notice period
executive directors
shares held outright at  
30 september 2014
shares held outright at 
30 september 2014 as a 
percentage of salary based 
on share price of 38910p  
as at 30 september 2014 
and salary as at 
30 september 2014
outstanding scheme interests at 30 september 2014
total of all share 
interests and outstanding 
scheme interests at  
30 september 2014
outstanding unvested 
scheme interests subject 
to performance measures
outstanding 
unvested scheme 
interests not subject 
to performance measures
total shares subject 
to outstanding 
scheme interests
peter long 3025860 1385 5528136 889770 6417906 9443766
johan lundgren 534021 297 3374793 510816 3885609 4419630
william waggott 556763 394 2541157 440527 2981684 3538447
volker böttcher na na 1316611 258192 1574803 1574803
notes
1 interests in shares held at 30 september 2014 include shares held by connected persons
2 all outstanding scheme interests take the form of rights to receive shares nilcost share options or conditional share awards
3 details of each scheme interest awarded under the dabs and psp held by each executive director are set out later in this report
4 volker böttcher 107416 unvested dabs matching share awards will lapse on 31 december 2014 94 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
deferr ed 	 annual 	 bonus 	 scheme 	 d abs
awards made under the dabs and which remain outstanding at 30 september 2014 are outlined below 
executive directors
dabs shares
nilcost 
options 
held at 
1 october 
2013
da b s	
n i l  c o s t	
op t i on s	
a w ard e d	
d u r i n g 	 t h e	
y e a r 	 e n d e d	
30 	 s e p t e mb e r	
2014 award date
market price 
per share 
at award
da b s 	 s h a r e s	
v e s t e d 	 a n d	
r e l ea s ed	
d u r i n g 	 t h e	
y e a r 	 e n d e d	
30 	 s e p t e mb e r	
2014
market price 
per share at 
vesting
market value 
at vesting  
£
planned
actual vesting 
and release 
date
m a x i m u m	
da b s	
s h a re s n i l 
c o s t 	 o p t i o n s	
h e l d 	 a t	 	
30 	 s e p t e mb e r	
2014
m a x i m u m	
v a l u e 	 b a s e d	
o n 	 s h a r e	
p r i ce 	 of	
3 8 9  10 p 	 a t	 	
30 	 s e p t e mb e r	
2014
 £ 
peter long 324781
1
061210 22900p 324781 3783 1228647 101213 	 –	 	 –	
1299124
2
061210 22900p 1299124 3783 4914586 101213 	 –	 	 –	
451578
1
071211 16470p 081214 	 451578	 	 1757090	
1806312
2
071211 16470p 081214 	 1806312	 	 7028360	
256646
1
061212 28400p 061215 	 256646	 	 998610	
1026584
2
061212 28400p 061215 	 1026584	 	 3994438	
181546
1
121213 37690p 121216 	 181546	 	 706395	
726184
2
121213 37690p 121216 	 726184	 	 2825582	
total 5165025 907730 1623905 6143233 4448850 17310475
johan lundgren 158515
1
061210 22900p 158515 3783 599662 101213 	 –	 	 –	
634060
2
061210 22900p 634060 3783 2398649 101213 	 –	 	 –	
220400
1
071211 16470p 081214 	 220400	 	 857576	
881600
2
071211 16470p 081214 	 881600	 	 3430306	
170809
1
061212 28400p 061215 	 170809	 	 664618	
683236
2
061212 28400p 061215 	 683236	 	 2658471	
119607
1
121213 37690p 121216 	 119607	 	 465391	
478428
2
121213 37690p 121216 	 478428	 	 1861563	
total 2748620 598035 792575 2998311 2554080 9937925
william waggott 123144
1
061210 22900p 123144 3783 465854 101213 	 –	 	 –	
492576
2
061210 22900p 492576 3783 1863415 101213 	 –	 	 –	
208257
1
071211 16470p 081214 	 208257	 	 810328	
833028
2
071211 16470p 081214 	 833028	 	 3241312	
134207
1
061212 28400p 061215 	 134207	 	 522199	
536828
2
061212 28400p 061215 	 536828	 	 2088798	
98063
1
121213 37690p 121216 	 98063	 	 381563	
392252
2
121213 37690p 121216 	 392252	 	 1526253	
total 2328040 490315 615720 2329269 2202635 8570453
g r an d 	t o t al 1 0 2 4 1 6 8 5 1996080 3032200 11470813 9205565 35818853
notes
1 dabs deferred award the deferred element of annual bonus subject to forfeiture for gross misconduct bankruptcy or certain other circumstances in accordance with the scheme rules
2 dabs matching award a multiple of the deferred award subject to continued employment to the release date and performance conditions over the threeyear vesting period as follows
• the performance measures and targets applicable for matching awards that vested in december 2013 are outlined on page 91 of the annual report and accounts for the year ended  
30 september 2013
• the performance measures and targets applicable for matching awards granted in 2011 2012 and 2013 are outlined in this report
3 the maximum value shown is based on the 30 september 2014 share price of 38910p the anticipated value of the dabs shares that will vest for the threeyear period ended  
30 september 2014 has been calculated using the threemonth average for the year ended 30 september 2014 ie 37254p 95 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
tt27  ar 2014  13112014  proof 1
p er formance 	 shar e 	 p lan 	 psp
awards made under the performance share plan and which remain outstanding at 30 september 2014 are outlined below 
executive directors
psp sharesnil
cost options 
held at 
1 october 2013
p s p 	 n i l  c o s t	
op t i on s	
a w ard e d	
d u r i n g 	 t h e	
y e a r 	 e n d e d 	 3 0	
s e p t em b er	
2014 award date
market 
price per share 
at award
p s p 	 s h a r e s	
v e s t e d 	 a n d	
r e l ea s ed	
d u r i n g 	 t h e	
y e a r 	 e n d e d 	 3 0	
s e p t em b er	
2014
market 
price per share 
at vesting
market 
value at vesting 
£
plannedactual  
vesting  
and release 
date
m a x i m u m 	 p s p	
s h a re s n i l 
c o s t 	 o p t i o n s	 	
h e l d 	 a t	 	
3 0 	 s e p t em b er	
2014
m a x i m u m	
v a l u e 	 b a s e d	
o n 	 s h a r e 	 p r i c e	
o f 	 3 8 9  1 0 p 	 a t	 	
3 0 	 s e p t em b er	
2014	 	
 £ 
peter long 742358 061210 22900p 742358 3783 2808340 101213 	 –	 	 –	
1032179 071211 16470p 081214 1032179 4016208
598591 061212 28400p 061215 598591 2329118
338286 121213 37690p 121216 338286 1316271
total 2373128 338286 742358 2808340 1969056 7661597
johan lundgren 264192 061210 22900p 264192 3783 999438 101213 	 –	 	 –	
850030 071211 16470p 081214 850030 3307467
295774 061212 28400p 061215 295774 1150857
185725 121213 37690p 121216 185725 722656
total 1409996 185725 264192 999438 1331529 5180980
william waggott 256769 061210 22900p 256769 3783 971357 101213 	 –	 	 –	
400728 071211 16470p 081214 400728 1559233
232394 061212 28400p 061215 232394 904245
145927 121213 37690p 121216 145927 567802
total 889891 145927 256769 971357 779049 3031280
grand total 4673015 669938 1263319 4779135 4079634 15873857
notes
1 psp awards are subject to continued employment to the release date and performance conditions over the threeyear vesting period as follows
• the performance measures and targets applicable for matching awards that vested in december 2013 are outlined on page 91 of the annual report and accounts for the year ended 
30 september 2013 
• the performance measures and targets applicable for psp awards granted in 2011 2012 and 2013 are outlined in this report
2 the maximum value is based on the 30 september 2014 share price of 38910p the anticipated value of the psp shares that will vest for the threeyear period ended 30 september 2014 
has been calculated using the threemonth average for the year ended 30 september 2014 ie 37254p 
i mplicati ons 	 of 	 the 	 merger 	 on 	 out st andin g 	 a wards
subsequent to the merger completing outstanding psp and dabs awards will rollover and vest in line with the original schedule it is possible 
that any performance conditions attached to the awards may be modified to ensure that they remain relevant to the combined group  96 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt 27  ar 2014  13112014  p roof 1
remuneration committee
continued
s t at e m e n t 	 o f 	 n o n e x e cu ti v e 	 dir e c t o rs ’ 	 sha r e h o l din gs
as at 30 september 2014 the nonexecutive directors’ interests in 
ordinary shares of the company were
nonexecutive directors
interests in shares held at 
30 september 2014
friedrich joussen chairman – 
sir michael hodgkinson deputy chairman 20000
horst baier – 
sebastian ebel – 
val gooding 2493 
janis kong 15000
coline mcconville – 
minnow powell 6891
dr erhard schipporeit – 
dr albert schunk – 
under the dividend reinvestment plan open to all shareholders under 
the same terms on 4 october 2013 tony campbell was allocated 525 
additional shares
the company’s register of directors’ interests which is open to 
inspection at the registered office contains full details of directors’ 
shareholdings and will be available for inspection before and during 
the annual general meeting on 5 february 2015 
during the year the price of the company’s ordinary shares ranged 
between 35550 pence and 45000 pence and the midclosing price 
on tuesday 30 september 2014 was 38910 pence
for the year ended 30 september 2014 peter long received and 
retained nonexecutive directors’ fees in respect of an appointment 
with rentokil initial plc of £60000 2013 £60000 no other executive 
director currently holds an external nonexecutive director post
under the dividend reinvestment plan open to all shareholders under 
the same terms on 3 october 2014 william waggott was allocated 
45 additional shares
there have been no further changes in the interests of the directors 
between 30 september 2014 and the date of approval of the 2014 
annual report and accounts
p e r f o rma n ce 	 gra ph 	 a nd 	 ta bl e
the graph below compares the tsr performance of tui travel plc 
assuming dividends are reinvested with the tsr performance of 
an index of international travel and leisure companies this index is 
considered by the committee to be the most appropriate comparison 
reference for these purposes from october 2011 this index has also 
been used for performance measurement under the company’s 
longterm incentive schemes as a member of the ftse 100 the 
performance of this index is included
30 sept 08 30 sept 09 30 sept 10 30 sept 11 30 sept 13 30 sept 12 30 sept 14
tui travel plc
international travel  leisure excluding tui travel plc
ftse 100
0
50
100
150
200
250
the table below shows the historic levels of peter long’s pay single 
figure of total remuneration and annual variable and longterm incentive 
pay awards as a percentage of plan maxima
financial year
single figure of annual 
remuneration 
£000 
annual variable pay 
awarded as percentage 
of maximum
value of vested  
longterm incentive 
awards as percentage  
of maximum
201314 13333 98 100
201213 10393 92 100
201112 6737 98 65
201011 4935 100 65
200910 6309 50 74
200809 5041 100 96
notes
1 for the financial year ended 30 september 2010 the performance targets for the annual 
bonus were met in full however the committee decided that in the context of an 
appropriate clawback of prior year bonus due to the profit restatement and substantial 
oneoff costs during the year the cash portion of the bonus would not be payable
2 in accordance with the relevant legislation the anticipated value of the dabs and psp 
shares that vested on 10 december 2013 was estimated for the purposes of the annual 
report for the year ended 30 september 2013 using a share price of 36500p this being 
the threemonth average for the year ended 30 september 2013 the actual share price 
was 37830p the fy201213 data above is the actual value rather than the estimate 
included in last year’s annual report and accounts
p er centa g e 	 cha n g e 	 i n 	 r em u n era ti o n 	 of 	ce o
the following table shows the percentage change in remuneration 
between the years ended 30 september 2013 and 30 september 2014 
for the ceo and employees within our chosen comparator group last 
year the comparator group was the uk group leadership team as this 
was considered to be the most meaningful comparator group given 
that their remuneration is managed on a central rather than local 
basis however following shareholder feedback the comparator group 
has been broadened 
the table below shows the percentage change in remuneration of 
the ceo compared to all permanent employees based in the uk
salary benefits annual bonus
comparator group percentage 
change including travel concessions 41 23 162
comparator group percentage 
change excluding travel concessions 41 23 162
ceo percentage change including 
travel concessions 00 00 61
ceo percentage change excluding 
travel concessions 00 00 61
r ela tiv e 	 i m po r ta n ce 	 of 	 spend 	 o n 	 pay	
remuneration paid 
to or receivable 
by all employees 
of the group
£m
distributions to 
shareholders by way 
of dividends and 
share buyback
£m
year ended 30 september 2014 1833	 153	
year ended 30 september 2013 1827 132 
percentage change 03 159 tt27  ar 2014  13112014  proof 1
97 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
	
d i r e c t or s ’ 	 r e p or t
 
financial statements
 
shareholder information
i m pl em enta ti o n 	 of 	 th e 	e x ecutiv e 	 d i r ec to rs ’ 	 r em u n era ti o n	
p o l i c y 	 f o r 	 th e 	 y ea r 	 co m m en ci n g 	 1 	 o c to ber 	 2 0 1 4
salar y
annual salary 
peter long £850000
johan lundgren £700000
william waggott £550000
salaries were reviewed as part of the annual process in october 2014 
no changes were made
benefit s 	  ex cludin g 	 pensi on 
the benefits that are effective from 1 october 2014 are
• peter long carcar allowance private healthcare cover and holiday 
travel concessions
• johan lundgren carcar allowance private healthcare cover 
and holiday travel concessions 
• william waggott carcar allowance private healthcare cover 
and holiday travel concessions 
r eti r em en t 	 b en e fit s
retirement benefits will continue to be applied as per the policy and 
application in previous years
retirement benefits allowance 
as  of salary
peter long 50
johan lundgren 33
william waggott 33
annua l 	 bo nus
the committee has set stretching targets focused on both profit 
and cash performance for the business although the target detail is 
considered commercially sensitive the measures and weightings for 
the year commencing 1 october 2014 are
group profitcash individual business objectives
peter long 80 20
johan lundgren 80 20
william waggott 80 20
it is anticipated that the bonus targets will be reviewed when the merger 
completes to ensure that they remain appropriate in the combined 
group and may be modified if appropriate to ensure that they remain 
relevant in the new business
shar e 	 p lans
in light of the merger it is not planned to make any psp awards in 
december 2014 it is understood that tui ag will include the executive 
directors in their ltip arrangements after the merger has completed
the share incentive plan is on hold
c o nsi d era ti o n 	 b y 	 th e 	 d i r ec to rs 	 of 	 ma t ters 	 r ela ti n g	
to 	 d i r ec to rs’ 	 r em u n era ti o n
the committee advises the board on overall remuneration policy 
it also determines on behalf of the board and with the benefit of 
advice from external consultants and members of the hr department 
the remuneration of the executive directors and other members of 
the group management board
the committee formulates and applies the policy with consideration 
to the prevailing economic climate in the major economies in which 
the group operates it observes the spirit of the group’s core values 
which cultivate responsible leadership in the external and internal 
social environment consequently the committee closely considers 
the company’s performance in building both shareholder value and 
a secure future for all stakeholders
the activities of the committee are governed by its terms of reference 
which were last revised on 6 february 2014 and can be found on the 
company’s website
the committee currently comprises four nonexecutive directors 
each of whom the company deems to be independent
• coline mcconville – chairman
• sir michael hodgkinson
• val gooding
• janis kong
the chairman sir michael hodgkinson and janis kong were in place 
throughout the year val gooding was appointed to the committee 
on 1 july 2014
no member of the committee has any personal financial interest 
other than as a shareholder in the matters to be decided by the 
committee the members of the committee have no conflicts of 
interest arising from crossdirectorships and have no daytoday 
involvement in the running of the company 
the committee met eight times during the year details of attendance 
can be found in the corporate governance report see page 68 
during the year the committee carried out the following activities
• consultation with shareholders and external bodies regarding the 
executive directors’ and gmb remuneration policy
• assessment of the achievement of executive directors’ and gmb 
members’ performance against their annual bonus objectives 
• assessment of performance for the vesting of the 2010 
performance share plan and deferred annual bonus scheme 
awards
• approval of psp and dabs awards for performance in the year 
ended 30 september 2013
• approval of the directors’ remuneration report for the year ended 
30 september 2013 
• consideration of market trends in executive remuneration and 
potential impact
• review of how the committee oversees the remuneration for the 
50 most senior leaders below the gmb tt27  ar 2014  13112014  proof 1
98 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
• review of gmb salaries
• review and discussion about corporate governance developments 
and their potential impact 
• assessment of the executive shareholding guidelines
• evaluation of the effectiveness of support provided by deloitte 
in their role as independent advisers to the committee
• consideration of the impact on executive remuneration of the 
merger with tui ag
• agreement of the annual bonus psp and dabs performance 
targets for the year ended 30 september 2014
during the year the committee considered the results of a remuneration 
committee effectiveness survey no significant concerns were raised
ad v is e r s
while it is the committee’s responsibility to exercise independent 
judgement the committee does request advice from management 
and external professional advisers as appropriate to ensure that its 
decisions are fully informed advice or services were provided to the 
committee during the year by 
• deloitte llp deloitte
• joyce walter – company secretary 
• peter long – chief executive
• jacky simmonds – group hr director and
• tim taylor – group reward director
the group hr director has direct access to the chairman of the 
committee and together with the group reward director advised the 
committee on reward matters relating to the executive directors and 
members of the gmb and broader group hr strategy and policy 
the chief executive attends meetings of the committee by invitation to 
make recommendations relating to the performance and remuneration 
of his direct reports and the company secretary acts as secretary 
to the committee executives are not in attendance when their own 
remuneration is considered 
the committee is authorised by the board to seek any information it 
requires from any employee of the group the committee is authorised 
to require the attendance of any director at any of its meetings
during the year the committee received independent advice on 
executive remuneration matters from deloitte deloitte received 
£179500 in fees for these services the fees were higher than usual 
because of the additional work arising from the proposed merger with 
tui ag deloitte is a founder member of the remuneration consultants 
group and as such voluntarily operates under the code of conduct in 
relation to executive remuneration consulting in the uk 
the committee appointed deloitte to the role of independent advisers 
to the committee in 2008 following an interview process the committee 
is comfortable that the deloitte engagement partner and team which 
provide remuneration advice to the committee do not have connections 
with tui travel plc that may impair their independence or objectivity 
in addition during the year ended 30 september 2014 deloitte also 
provided various tax services to the company
herbert smith freehills llp was appointed to provide advice on law 
and regulation in relation to share scheme matters which is provided 
to the company and is available to the committee legal fees relate 
to advice provided to the company and not the committee and are 
charged on a timecost basis herbert smith freehills llp also provides 
general legal advice to the company
s ta tem ent 	 of 	 sha r eh o ld er 	 voti n g
at the annual general meeting of tui travel plc on 6 february 2014 the 
results of the votes regarding resolutions 2 to approve the directors’ 
remuneration report and 3 to approve the directors’ remuneration 
policy were
resolution 
number
votes for votes against
votes 
total
votes 
withheld number  number 
2 971095978 9940 5873376 060 976969354 2172449
3 943269304 9760 23158662 240 966427966 12713837
the remuneration report was approved by a duly authorised 
committee of the board of directors on 3 december 2014 and signed 
on its behalf by 
c o lin e 	 mcc o n v i lle
chairman of the remuneration committee
3 december 2014
remuneration committee
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tt27  ar 2014  xx082014  design
a special resolution will also be proposed to renew the directors’ 
authority to repurchase the company’s ordinary shares in the market 
the authority will be limited to a maximum of 121755258 ordinary 
shares and sets the minimum and maximum prices which will be paid 
this authority will expire at the end of the agm held in 2016 or if 
earlier on 5 may 2016
dir e c t o rs ’ 	 in d e m n i t y 	 a r ra n ge m e n t s
throughout the financial year and at the date of approval of these 
financial statements the company has purchased and maintained 
directors’ and officers’ liability insurance in respect of itself and its 
directors whether in their capacity as directors of the company or 
associated companies the directors also have the benefit of indemnity 
provisions in the company’s articles of association these provisions 
are qualifying thirdparty indemnity provisions as defined in section 
234 of the companies act 2006
si gn ifica nt 	 a gr eem ent s 	 – 	 cha n g e 	 of 	 co ntr o l
the companies act 2006 requires us to disclose any significant 
agreements that take effect alter or terminate on a change of control 
of the company
r elati onship 	 agr eement 	 with 	t ui	 a g 	
the relationship agreement between tui ag and tui travel dated 
29 june 2007 includes the principle that tui travel will operate 
independently of tui ag and records the understanding between 
tui ag and tui travel regarding the relationship between them and 
the governance of tui travel 
the relationship agreement includes the following requirements
• that transactions and relationships between the company and tui 
ag andor its associates must be conducted at arm’s length and  
on normal commercial terms
• that tui ag andor its associates must abstain from taking action 
that would have the effect of preventing the company from 
complying with its obligations under the listing rules
• that no controlling shareholder or its associates may propose or 
procure the proposal of a shareholder resolution which is intended 
or appears to be intended to circumvent the proper application of 
the listing rules and
• that so long as tui ag controls 40 or more of the company the 
ceo’s appointment is subject to consent from tui ag unless tui ag 
relinquishes its right to appoint a chairman in which case tui ag has 
the right in its sole discretion to appoint any person to be the ceo
the company has complied with these independence provisions set 
out above during the year and so far as the company is aware tui ag 
and its associates have complied with these independence provisions 
during the year
the relationship agreement will remain in force until either the shares 
in tui travel are no longer traded on the london stock exchange or 
tui ag has less than 10 of the rights to vote at general meetings 
in addition in the event that another party acquires control of tui ag 
during the term of the relationship agreement tui ag will lose certain 
rights under the relationship agreement including its rights in respect 
of the composition of the board
pages 64 to 102 inclusive together with the sections of the annual 
report incorporated by reference form part of the directors’ report 
which is presented in accordance with and with reliance upon applicable 
english company law the liabilities of the directors in connection with 
that report shall be subject to the limitations and restrictions provided 
by such law
other information which forms part of the directors’ report can be 
found in the following sections of the annual report
information location in annual report
acquisitions financial statements – note 13
audit committee report page 73
board and committee membership page 64
corporate governance report page 67
directors’ biographies page 64
directors’ responsibility statements page 102
financial risk management page 42
future developments page 61
gender diversity page 36
greenhouse gas emissions page 29
human rights page 27
nomination committee report page 77
our people page 32
pension schemes financial statements – note 6c
post balance sheet events financial statements – note 35
results and dividends page 6 and pages 52 to 61
remuneration report page 79
share capital financial statements – note 24
social responsibility page 24
sustainable development page 24
p o li ti ca l 	 d o nati o ns
the group made no political contributions during the year 2013 £nil
d i r ec to rs 	 a n d 	 th e i r 	 i nter est s
details of directors and their biographies can be found in a separate 
section called ‘board of directors’ on page 64 and directors’ interests 
are given in the remuneration report on pages 93 and 96
p o w ers 	 f o r 	 th e 	c o m pa n y 	 issu i n g 	 o r 	 b uyi n g 	 ba ck 	 it s	
o wn 	 sha r es
the company was authorised by shareholders at the agm held in 
february 2014 to purchase in the market up to 10 of the company’s 
issued share capital as permitted under the company’s articles no 
shares 2013 no shares have been bought back under this authority 
during the year ended 30 september 2014 this standard authority is 
renewable annually and the directors will seek to renew this authority 
at the agm to be held on 5 february 2015 the directors were granted 
authority in 2014 to allot relevant securities up to a maximum nominal 
amount of £7453404460 that authority will apply until the conclusion 
of the 2015 agm 
at the agm in february 2015 shareholders will be asked to grant an 
authority to allot shares in the capital of the company up to a maximum 
nominal amount of £8117017240 representing the abi guideline limit 
of approximately 66 of the company’s issued ordinary share capital 
of this amount 405850862 shares representing approximately 33 
of the company’s issued ordinary share capital can only be allotted 
pursuant to a rights issue the power will last until the conclusion of 
the agm in 2016 or if earlier on 5 may 2016 the directors have no 
present intention of exercising this authority but they consider it 
appropriate to maintain the flexibility that this authority provides 
other statutory disclosures 100 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  xx082014  design
• the free float of the company is less than 30 of the issued 
ordinary shares for at least five consecutive dealing days where 
the free float is all outstanding ordinary shares of the company 
less those held by or on behalf of tui ag its associates and any 
persons acting in concert with it 
tui ag subscribed at the issue price for 50 of the convertible bond 
offering to prevent the potential dilution of its majority shareholding 
£ 1 1 6 	 milli on 	 of 	 bondin g 	 fa cilit y 	 a gr eement s	
agreements between a number of surety companies and the company 
relating to bonding facilities of £116 million currently provided to the 
company contain terms which give the sureties the right to cancel all 
commitments to the company and to declare all outstanding bonds 
immediately due and payable if a change of control occurs for the 
purpose of this agreement a change of control occurs if
• any person or group of persons acting in concert gains control of the 
company or
• tui ag and any persons acting in concert with it acquires or acquire 
75 or more of the voting shares in the company
£2 7 5 	 mi lli o n 	 pa r tn e rsh ip 	 a r ra n ge me n t s	
in may 2011 the company entered into a limited liability partnership 
arrangement and a scottish limited partnership arrangement with 
three of its uk defined benefit pension schemes to address the 
ongoing funding and management of the pension schemes under 
the partnership arrangements the company committed to making 
payments of up to £275 million in 2026 if and to the extent that the 
pension schemes remain in deficit at that time the partnership 
agreements contain terms which give the pension schemes the right to 
wind up the partnerships and require an injection of up to £275 million 
by the company if there is a restructuring or reorganisation of the 
assets of the company which results in a reduction of the company’s 
consolidated net assets to less than £1100 million following the 
occurrence of a change of control for the purposes of the partnership 
agreements a change of control occurs if
• following a takeover offer for the company a person or group of 
persons acting in concert acquire more than 30 of the voting rights 
in the company or
• tui ag and any persons acting in concert with it acquires or acquire 
75 or more of the voting rights in the company andor the 
company’s listing is cancelled
r estri c ted 	 sha r es	
in relation to the £400m fixed rate 49 convertible bond an 
independent special purpose company antium finance ltd subscribed 
for 50 tui ag entered into a forward purchase agreement with 
antium finance ltd for those £200m of convertible bonds representing 
86967049 shares in order to prevent dilution of its majority 
shareholding tui ag is entitled to receive the interest coupon on these 
bonds and to purchase them by way of security tui ag transferred 
to antium finance ltd 86967049 shares currently representing 714 
of the company’s share capital on an undiluted basis those shares are 
restricted from being transferred and tui ag remains entitled to the 
dividend yields to exercise the voting rights attached to them and to 
repurchase them
according to a new contractual arrangement dated 10 october 2013 
antium finance ltd has assigned its rights to deutsche bank ag and 
the entitlement of tui ag to purchase the bonds and to repurchase 
the 86967049 shares in the company is extended to july 2016 at the 
latest tui ag remains entitled to receive the interest coupon on the 
bonds as well as the share dividends referred to above 
the relationship agreement contains restrictions on the acquisition by 
tui ag of additional shares in tui travel which result in the increase of 
its shareholding to more than 55 of the voting rights on a fullydiluted 
basis save where tui ag makes a general offer to acquire all tui travel 
shares in issue as detailed below £400m of 49 convertible bonds 
were issued in april 2010 half of these bonds are held on tui ag’s 
behalf and if converted at the conversion price set on the launch date 
would give rise to 52309463 new shares on a fullydiluted basis 
if bonds held by all bondholders were converted tui ag would have 
had a holding of 5003 as at 30 september 2014 as a percentage of 
shares in issue tui ag’s holding as at 30 september 2014 was 5372 
2013 5448 
as a ‘controlling shareholder’ of the company for the purposes of the 
listing rules tui ag will be entitled to vote on the ordinary resolutions 
at the agm for the reelection of the company’s independent directors 
however each such resolution at the agm will also require approval 
by a majority of the votes cast by the company’s independent 
shareholders ie the company’s shareholders excluding tui ag and 
any other controlling shareholder
tui ag has antidilution rights in respect of further issues of shares in 
tui travel other than on a preemptive basis tui travel has also agreed 
that certain matters will require the prior approval of 80 of the 
directors present at the meeting of the board at which such matter is 
considered including material changes to the business of any group 
company acquisitions and disposals of a value which exceeds £10m 
the entry into variation or redemption prior to their due date of any 
borrowing facilities and the approval of the annual budget
bank 	 cr edit 	 fa cilities
some bank facility agreements incorporate terms which give the 
lending banks the right to cancel all commitments to the company  
and to declare all outstanding credits and accrued interest immediately 
due and payable if a change of control occurs for the purpose of this 
agreement a change of control occurs if
• any person or group of persons acting in concert gains control of  
the company or
• tui ag and any persons acting in concert with it acquires or acquire 
75 or more of the voting shares in the company
specifically the facilities affected are
• a total of £1225m bank revolving credit facilities which mature  
in june 2018 
• £175m of bonding and letter of credit facilities which mature in  
june 2018 and
• £150m bank syndicated facility which matures in april 2016 and 
which is only available in the event of a requirement to redeem the 
group’s convertible bonds
£ 40 0 	 milli on 	 4 90 	 con v er tible 	 bonds
in april 2010 the company issued £400 million of 490 convertible 
bonds with a conversion price set at 38234 pence per share the 
settlement took place on 27 april 2010 the convertible bonds contain 
terms which give the bondholders the right to redeem the bonds at 
their principal amount together with accrued and unpaid interest up to 
the date of redemption if a change of control occurs for the purpose 
of the convertible bonds a change of control occurs if
• following a takeover offer to acquire all or a majority of the shares 
in the company being declared unconditional in all respects or 
becoming effective the offeror andor its associates have or will 
have more than 50 of the voting rights in the company or 
other statutory disclosures
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tt27  ar 2014  xx082014  design
of the £350m 6 convertible bonds which were issued in september 
2009 £348m 9934 had been converted as at 30 september 2014 
and £2m 066 were redeemed after the year end
s ignifi can t 	 shar e hol d e rs
as at 30 november 2014 the company had been notified of the 
following holdings in excess of 3 in its issued share capital 
shareholder number of shares percentage 
tui ag 609120138 5003
standard life investments 64775468 532
artemis investment management 47329028 389
p ost 	 ba la n ce 	 sh eet 	 e v ent s
on 15 september 2014 the independent directors of the company 
and the executive board vorstand of tui ag announced that they 
had reached agreement on the terms of a recommended allshare 
nilpremium merger of the company and tui ag the ‘merger’ to 
be implemented by way of a scheme of arrangement of the company 
under part 26 of the companies act 2006 the ‘scheme’ the scheme 
document in connection with the scheme containing the notice of 
the court meeting and notice of general meeting was published on 
2 october 2014 the ‘scheme document’ 
at the court meeting of the scheme shareholders and the general 
meeting of the tui travel shareholders both held on 28 october 2014 
the resolutions contained in the notice of the court meeting and notice 
of general meeting were duly passed by the requisite majorities as such 
the merger is expected to complete between middecember 2014 and 
31 march 2015
go i n g 	 co n cern	
after making appropriate enquiries the directors have reasonable 
expectation that the company and group have adequate resources 
to continue operations for the foreseeable future for this reason 
they continue to adopt the going concern basis in preparing the 
financial statements
a further summary of funding and liquidity is included in note 1bv 
to the consolidated financial statements
i n d epe n d e nt 	 a u d i t o rs
a resolution to reappoint pricewaterhousecoopers llp will be proposed 
at the annual general meeting 
an n ua l 	 gen era l 	 m eeti n g
the annual general meeting agm will be held on thursday 5 february 
2015 at 1030am at the offices of herbert smith freehills llp exchange 
house primrose street london ec2a 2eg an explanation of the 
business to be transacted at the agm has been circulated to shareholders 
and can be found on the website httpwwwtuitravelplccom
investorsmedia 
the directors’ report was approved by a duly authorised committee of 
the board of directors on 3 december 2014 and signed on its behalf by 
joyce walter the company secretary
by order of the board
j o y ce 	 w alter
company secretary
3 december 2014
company number 6072876 102 tui travel p l c annu al repo rt  accounts 2014
dire ctor s’ re port
tt27  ar 2014  xx082014  design
each of the directors whose names and functions are listed on page 64 
confirm that to the best of their knowledge
• the group financial statements which have been prepared in 
accordance with ifrss as adopted by the eu give a true and fair 
view of the assets liabilities financial position and profit of the 
group and
• the directors’ report includes a fair review of the development  
and performance of the business and the position of the group 
together with a description of the principal risks and uncertainties 
that it faces
the directors also confirm that
• so far as they are aware there is no relevant audit information  
of which the company’s auditors are unaware and
• they have taken all the steps that they ought to have taken as 
directors in order to make themselves aware of any relevant audit 
information and to establish that the company’s auditors are aware 
of that information
the directors’ responsibilities statement was approved by a duly 
authorised committee of the board of directors on 3 december 2014 
and signed on its behalf by william waggott chief financial officer
william 	 w a g g ot t
chief financial officer
3 december 2014
the directors are responsible for preparing the annual report the 
directors’ remuneration report and the financial statements in 
accordance with applicable law and regulations
company law requires the directors to prepare financial statements 
for each financial year under that law the directors have prepared the 
group financial statements in accordance with international financial 
reporting standards ifrss as adopted by the european union and 
the parent company financial statements in accordance with united 
kingdom generally accepted accounting practice united kingdom 
accounting standards and applicable law under company law the 
directors must not approve the financial statements unless they are 
satisfied that they give a true and fair view of the state of affairs of the 
group and the company and of the profit or loss of the group for that 
period in preparing these financial statements the directors are 
required to
• select suitable accounting policies and apply them consistently
• make judgements and accounting estimates that are reasonable 
and prudent
• state whether ifrss as adopted by the european union and 
applicable uk accounting standards have been followed subject 
to any material departures disclosed and explained in the group 
and parent company financial statements respectively and
• prepare the financial statements on the going concern basis unless 
it is inappropriate to presume that the company will continue 
in business
the directors are responsible for keeping adequate accounting records 
that are sufficient to show and explain the company’s transactions and 
disclose with reasonable accuracy at any time the financial position  
of the company and the group and enable them to ensure that the 
financial statements and the directors’ remuneration report comply 
with the companies act 2006 and as regards the group financial 
statements article 4 of the ias regulation they are also responsible 
for safeguarding the assets of the company and the group and hence 
for taking reasonable steps for the prevention and detection of fraud 
and other irregularities
the directors are responsible for the maintenance and integrity of the 
company’s website legislation in the united kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions 
the directors consider that the annual report  accounts taken as a 
whole is fair balanced and understandable and provides the information 
necessary for shareholders to assess the company’s performance 
business model and strategy
directors’ responsibilities tt27  ar 2014  xx082014  design
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 103 g r o u p 	f i n a n c i a l	s t a t e m e n t s
 110 consolidated income statement
 111 consolidated statement  
  of comprehensive income 
 112 consolidated balance sheet
 113 consolidated statement of changes  
  in equity
 114 consolidated statement of cash flows
	 11 5 n o t e s	 t o	 t h e 	 c o n s o l i d a t e d	 	
	 	 f in a n c i a l 	 s t ate m e n t s
 115 1 accounting policies
 125 2 key accounting estimates  
   and judgements
 127 3  segmental information
 129 4  separately disclosed items
 131 5 net financial expenses
 131 6 employees
 140 7 income expenses and  
   auditors’ remuneration
 141 8 taxation
 143 9 dividends
 144 10 intangible assets
 147 11  property plant and equipment
 149 12 investment in joint ventures  
   associates and other investments
 151 13 business combinations
 153 14 deferred tax assets and liabilities
 154 15 inventories
 154 16 trade and other receivables
 155 17 cash and cash equivalents
 156 18 other investments
 156 19 assets classified as held for sale 
 156 20 interestbearing loans  
   and borrowings
 158 21 current trade and other payables
 158 22 provisions for liabilities
 159 23 noncurrent trade and  
   other payables
 159 24 called up share capital
 160 25 capital and reserves
 162 26 financial instruments 
 171 27 movements in cash and  
   net debt and cash conversion
 172 28  operating lease commitments
 172 29 capital commitments
 172 30 contingent liabilities
 172 31 related party transactions
 175 32 principal operating subsidiaries
 176 33 earnings per share
 177 34  capital management
 178 35  post balance sheet events
 178 36 ultimate parent company
	 17 9	 i n d e p e n d e n t 	 a u d i t o r s ’ 	r e p o r t 	 	
	 	  p a r e n t 	 c o m pa n y 
 180 company balance sheet
 181 notes to the company’s  
  financial statements
financial statements 104 tui travel p l c annu al repo rt  accounts 2014
independent auditors’ report to the members of tui travel plc
what 	 w e 	 ha v e 	 audited
tui travel plc’s financial statements comprise
• the consolidated income statement and the consolidated statement 
of comprehensive income for the year then ended 30 september 2014
• the consolidated balance sheet as at 30 september 2014
• the consolidated statement of cash flows for the year then ended
• the consolidated statement of changes in equity for the year then 
ended and
• the notes to the financial statements which include a summary of 
significant accounting policies and other explanatory information
certain required disclosures have been presented elsewhere in the 
annual report rather than in the notes to the financial statements 
these are crossreferenced from the financial statements and are 
identified as audited
the financial reporting framework that has been applied in the 
preparation of the financial statements is applicable law and ifrss 
as adopted by the european union
r epo r t 	 o n 	 th e 	 gr o u p 	 fina n cia l 	 sta tem ent s
ou r 	 o p in i o n
in our opinion tui travel plc’s group financial statements 
the ‘financial statements’
• give a true and fair view of the state of the group’s affairs as at 
30 september 2014 and of its profit and cash flows for the year 
then ended
• have been properly prepared in accordance with international 
financial reporting standards ifrss as adopted by the european 
union and
• have been prepared in accordance with the requirements of the 
companies act 2006 and article 4 of the ias regulation
our 	 a udit 	 appr oa ch
o ve r v iew
• overall group materiality £275 million which represents 45 of underlying  
operating profit 
• we conducted audit work at 50 businesses in 15 countries
• the group engagement team visited the following locations – uk germany france 
nordics belgium netherlands russia canada and spain
• our audit scope addressed 87 of group revenues and 83 of absolute group 
underlying operating profit ie the sum of the numerical values without regard  
to whether they were profits or losses for the relevant reporting units 
• effectiveness of internal control
• impairment assessment – goodwill and other intangible assets and russia
• provisions and other areas of balance sheet judgement
• separately disclosed items
• deferred taxation
• risk of fraud in revenue recognition 
t he 	 s cope 	 o f 	 our 	 audit 	 and 	 our 	 are a s 	 o f 	 foc u s
we conducted our audit in accordance with international standards on auditing uk and ireland ‘isas uk  ireland’
we designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements in particular  
we looked at where the directors made subjective judgements for example in respect of significant accounting estimates that involved making 
assumptions and considering future events that are inherently uncertain as in all of our audits we also addressed the risk of management 
override of internal controls including evaluating whether there was evidence of bias by the directors that may represent a risk of material 
misstatement due to fraud 
the risks of material misstatement that had the greatest effect on our audit including the allocation of our resources and effort are identified as 
‘areas of focus’ in the table below together with an explanation of how we tailored our audit to address these specific areas this is not a complete 
list of all risks identified by our audit 
our observations on the areas below were based on the evidence obtained to support our opinion on the financial statements as a whole
materiality
audit scope
areas of 
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ar ea 	 of 	 focus h o w 	 our 	 audit 	 addr essed 	 the 	 ar ea 	 of 	 focus
e f fec t i vene s s 	 o f 	 int ern al 	 cont rol
refer to page 75 ‘the effectiveness of internal control and the risk 
management framework’ within the audit committee report
the overall control environment in the group has improved over the last 
few years with a change in approach from the group management team 
and a greater focus on ensuring that controls in place are more robust 
and financial reporting more accurate 
the financial controls processes and procedures across the group are  
at varying stages of maturity and there are a large number of different 
financial systems in operation management is continuing to implement 
the coso framework across the finance functions within the group 
with the aim of ensuring controls within the larger businesses are fully 
documented owned by individuals within those businesses and evidence 
of the operation of the control is retained the smaller businesses within 
the group are required to operate a centrally defined list of minimum 
controls providing additional assurance over the control environment
we focused on this area because financial information at locations 
where the control environment is less mature is inherently more at risk 
of misstatement these locations tend to be but are not exclusively 
the smaller businesses operated by the group
we assessed the overall control environment of the group including 
meeting with senior management and the group’s legal compliance and 
internal audit functions 
we evaluated the progress of the group’s project that is designed to 
strengthen the tone at the top including assessing the quality of internal 
audit and strengthening of risk management process and procedures and 
to formalise certain controls policies and processes to improve the 
robustness of the control environment throughout the businesses operated 
by the group
the group is complex and we noted that although this project is becoming 
embedded within the larger businesses where the output is more 
formalised within the smaller businesses the controls are less formal
as a result our audit approach incorporated
• a greater focus on those reporting units and functions with weaker controls
• a greater emphasis on substantive testing of transactions balances and 
key reconciliations and
• a greater emphasis on testing of manual journals
after discussion with the audit committee we also included a greater 
number of smaller businesses in scope for an audit of their complete 
financial information 
no material misstatements were noted from these additional areas of 
focus and emphasis
i mp air ment 	 a s s e s s ment 	 – 	 g oodwill 	 and 	 o t her 	 int ang ible 	 a s s e t s	
and 	 ru s s i a	
refer to page 74 ‘annual goodwill impairment review’ and ‘sdi’ within 
the audit committee report page 121 significant accounting policies 
and page 144 notes
goodwill and other intangible assets
the goodwill and intangible asset balances of £43bn are supported by 
an annual impairment review 
no impairment charge has been recorded by management against these 
balances in the current financial year the risk that we focused on in the 
audit is that the goodwill and intangibles balance may be overstated and 
that an impairment charge may be required 
of the £43bn £32bn relates to businesses that have grown significantly 
since acquisition and for which there is substantial headroom the risk 
that we focused on in the audit is that the remaining balance of £11bn 
may be overstated 
certain assumptions made by management in the impairment review are 
key judgements in particular
• the goodwill and intangibles balances in the specialist  activity 
businesses amount to £715m certain of these businesses have been 
trading below budget and will require turnaround actions to achieve 
the anticipated growth rate in the next five years in the business plans 
if these growth rates are not achieved the goodwill and intangible asset 
values could be impaired 
• the french mainstream business with £162m of goodwill and intangibles 
has been loss making and is highly dependent on the north african 
destinations where there is continuing political unrest and the success 
of the cost reduction plan the judgement over the extent of revenue to 
be generated from north africa is a key area of focus 
• there has been investment in the online accommodation businesses for 
the last three years with £253m of goodwill and intangibles management 
is forecasting high revenue and profit growth rates in the next five years 
resulting from the investment in brazil and in asia if these growth rates 
are not achieved it could lead to impairment of the related goodwill and 
intangible assets and
• the assessment of the overall long term growth rates and discount rates 
used by management because small changes in either of these can result 
in a significant change in the value in use
russia
in addition the group has a joint venture in russia and ukraine following 
the civil war in ukraine and the impact of the devaluation of the rouble 
the businesses in russia and ukraine made losses in the year and there 
is uncertainty over the future trading environment and cash flows from 
these businesses management has now assessed that the longterm 
nontrading balances with the russian joint venture have been impaired 
and also provided for the committed funding which was paid to the joint 
venture in october and november 2014 in total impairment charges of 
£28m have been made during the year
we evaluated and challenged the group’s future cash flow forecasts and 
the process by which they were drawn up and tested the underlying 
value in use calculations we compared the group’s forecast to the latest 
board approved three year plans and found them to be consistent
in certain specialist  activity businesses the key assumptions we focused 
on were the speed at which sales growth would be achieved and whether 
cost savings could return some businesses to their former profitability 
factors we considered included new market opportunities and the cost 
savings from ongoing restructuring overall we found the growth plans 
were achievable but that there was sufficient uncertainty to require 
management to disclose the sensitivities of key assumptions and these 
are included in note 10
for the france mainstream business we focused on the assumptions about 
the impact of the political unrest on sales in north africa management’s 
ability to retain sales growth by offering alternative destinations and the 
impact of the downsizing restructuring of recent years based on the booking 
pattern of tui france’s customers this year and analysis of the size of the 
french market for overseas travel we concurred with management’s position
for the online accommodation business we focused on understanding and 
challenging management plans for future growth we noted that these plans 
are driven by cost savings from shared it platforms and back office functions 
for the key businesses in this cash generating unit cgu and considered 
these were achievable and within management’s control we applied 
sensitivities to the assumptions on speed and extent of market penetration 
particularly in asiarooms and malapronta this analysis showed that 
although different assumptions could have been made those chosen by 
the directors sat within an acceptable range
we also challenged
• the directors’ key assumptions for longterm growth rates in the group’s 
forecasts by comparing them to economic and industry forecasts and
• the discount rate by assessing the cost of capital for the company and 
comparable organisations 
we performed sensitivity analysis around the longterm growth rates 
and discount rate to ascertain the extent of change in those assumptions 
that would be required for the goodwill and other intangible assets 
in individual cgus to be impaired we determined that a movement 
arising of this extent in those key assumptions was unlikely and that the 
disclosures made regarding the assumptions and the sensitivities drew 
attention to the more significant areas of judgement
we reviewed the likely future cash flows from the russia joint venture 
and focused on the speed at which the russian market will return to 
trading levels similar to that achieved in 2013 the level of trading will 
determine the ability of the business to generate sufficient cash to repay 
the trading and nontrading balances we agreed with management’s 
conclusion to impair the loans and the october and november 2014 
committed funding we read investment committee and board minutes 
and discussed with management and as a result were satisfied there is 
no unprovided committed funding to the russia joint venture 106 tui travel p l c annu al repo rt  accounts 2014
independent auditors’ report to the members of tui travel plc
continued
ar ea 	 of 	 focus h o w 	 our 	 audit 	 addr essed 	 the 	 ar ea 	 of 	 focus
prov i s ion s 	 an d 	 o t h e r 	 are a s 	 o f 	 b al an c e 	 s h e e t 	 ju dge me n t
refer to page 74 ‘provisions for claims and accruals’ and 
‘hotel prepayments’ within the audit committee report page 123 
significant accounting policies and pages 154  158 notes
the relative size of the balances in the consolidated balance sheet compared 
to the size of the underlying operating profit of the group makes the 
income statement very sensitive to changes in the consolidated balance 
sheet certain lines within the balance sheet such as airline and hotel 
cost accruals within accruals and deferred income of £15bn provisions 
£644m and prepayments £632m require more judgement on the part 
of management and are therefore an area of greater focus for the audit
in june 2014 tui ag and tui travel plc announced their intention to 
complete an all share nil premium merger 
the timing of the publication of certain documents related to the merger 
resulted in the need for management to make judgements on closing 
balance sheet positions earlier than usual during the year end process 
and to make an estimate of the year’s underlying operating profit in early 
october 2014 shareholders made decisions based on this estimate 
which placed additional pressure on management not to change the 
estimate of underlying operating profit and the judgements made 
we assessed and tested the judgements made by both group and local 
management teams relating to key balance sheet positions 
in particular we challenged for example by assessing against past history 
or agreeing to supporting evidence
• the estimated costs associated with maintaining aircraft under existing 
lease agreements 
• the anticipated claim and payment rates used within the calculation 
of denied boarding compensation liability
• the closing provisions associated with ongoing legal matters
• the appropriateness of the carrying value of hotel prepayments 
• the appropriateness of the internal and external costs capitalised 
for development projects
• the estimate of accruals for airlines and hotels costs and
• the assumptions used within the calculation of pension liabilities
in each case we considered the judgements made by management to  
be reasonable in light of the evidence provided
s e p ar at e l y 	 di s c lo s e d 	 i t e m s 	  sdi s 
refer to page 74 ‘sdi’ within the audit committee report page 116 
significant accounting policies and page 129 notes
credits of £73m and debits of £72m have been included in sdi in the 
year ended 30 september 2014
as separately disclosed items and other categories are excluded from 
underlying operating profit the nature and consistency of classification 
of these items is important in understanding the result for the year and 
is a matter of judgement
we assessed the appropriateness of the policy for sdis and whether the 
significant items that were included within the sdis were appropriately 
classified we also considered whether there were other significant items 
which should have been included as sdis by obtaining a list of significant 
oneoff transactions and assessing these against the policy for sdis
we found that the classification judgements and disclosures made by 
management were in line with the policy
t a x at io n
refer to page 74 ‘tax’ within the audit committee report note 1 to 
the financial statements for the directors’ disclosures of the related 
accounting policies judgements and estimates and notes 8  14
there is significant complexity in the calculation of direct and indirect tax 
balances that arises from the complexity of the group’s legal structure 
including multiple legal entities in nonfiscal consolidations the multiple 
tax jurisdictions and changing tax environment in which the group operates 
and the differing underlying systems used by the group to generate 
accounting entries in addition we focused on specific tax issues with respect 
to german trade tax as set out in note 8 iv and the vat position of 
hotelbeds product slu
the group also has deferred tax assets of £165m and liabilities of £67m 
in the balance sheet at 30 september 2014 during the year the group 
has performed a review of all deferred tax assets and liabilities to ensure 
they have been calculated correctly and that they are substantiated by 
supporting documentation there is judgement in the assessment of 
whether deferred tax assets will be utilised in future periods particularly 
given the cyclicality of the business and the difficulty in estimating when 
and where taxable profits will arise around the group
we assessed and formed our own views on the key judgements with 
respect to open tax positions and found that the judgements made by 
management were consistent with our views we tested the calculations 
and payments in relation to the vat position of hotelbeds product slu 
and found no material misstatements
we read the external advice the group has received with respect to the 
assessment that no provision is required for german trade tax and 
concurred with management’s conclusion and the resulting disclosures
we understood the underlying transactions basis for significant deferred 
tax assets and liabilities and we found evidence to support the rationale  
on which the deferred tax assets and liabilities have been recognised
we tested the calculations performed in respect of the locations within 
group audit scope with particular emphasis on the uk where each legal 
entity files a separate tax return and germany which includes two levels 
of tax – federal and state we found no material misstatements from 
our testing
where the recoverability of deferred tax assets is dependent on future 
profits such as in france we checked that the forecasts used were 
consistent with the board approved three year plan that we subjected 
to scrutiny as part of the goodwill impairment review
r i s k 	 o f 	 f r au d 	 in 	 reve n ue 	 re c og ni t ion	
see note 1 to the financial statements for the directors’ disclosures of the 
related accounting policies judgements and estimates for further information
we focused on recognition of revenue because there can be a significant 
difference between the timing of receipt of cash from customers and the 
subsequent recognition of revenue on the holiday departure date due to 
manual intervention and the high volume of transactions the high number 
of different reservation systems and the interfaces of these with the 
accounting records there is the potential for deliberate manipulation 
or error
we assessed the consistency of the application of the revenue recognition 
policy by reconsidering the accounting policy for the different sources of 
the group’s revenue we tested the design and operating effectiveness 
of the controls including it controls over revenue systems across the 
group to determine the extent of additional substantive testing required 
and also tested key reservation system reconciliations at 30 september 
2014 we found no material misstatements from our testing
we checked that revenue had been recognised at the correct time by testing 
a sample of transactions and comparing the departure dates against 
which the revenue had been recognised no exceptions were noted from 
our testing
our work also included testing a sample of manual journals which did not 
identify any items that could not be substantiated tui travel p l c annu al repo rt  accounts 2014 107
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
h o w 	 w e 	 t a ilor ed 	 the 	 audit 	 scope
we tailored the scope of our audit to ensure that we performed enough 
work to be able to give an opinion on the financial statements as a 
whole taking into account the geographic and management structure 
of the group the accounting processes and controls and the industry 
in which the group operates 
the group is structured along three segment lines being mainstream 
accommodation  destinations and specialist  activity the group’s 
financial statements are a consolidation of its worldwide reporting 
units comprising its operating businesses within these segments and 
centralised functions 
in establishing the overall group audit strategy and plan we determined 
the type of work that needed to be performed at the reporting units 
by the group engagement team and by component auditors from 
other pwc network firms and from two other firms working under 
our instruction in respect of canada and russia where the work 
was performed by component auditors we determined the level of 
involvement we needed to have in the audit work at those reporting 
units so as to be able to conclude whether sufficient appropriate audit 
evidence had been obtained as a basis for our opinion on the group 
financial statements as a whole 
for each reporting unit we determined whether we required an audit of 
their complete financial information or whether higher level procedures 
would be sufficient those where a complete audit was required included 
the two largest reporting units mainstream uk  ireland and 
mainstream germany because they each make up more than 15 
of the group’s revenue or underlying profits we included a further 18 
reporting units due to the risk characteristics of those units either due 
to the control environment or the nature of the business as an airline 
another 16 reporting units so that the major source markets were 
covered across all sectors six additional reporting units as a consequence 
of both the maturing control environment and our consultations with 
the audit committee and performed specified procedures on a further 
eight reporting units to cover specific balances 
in addition we performed higher level procedures with respect to the 
remaining reporting units the group consolidation financial statement 
disclosures and a number of complex items were audited by the group 
engagement team at the head office these include derivative financial 
instruments hedge accounting pensions and share based payments 
the group engagement team also visited 15 businesses in nine countries 
uk germany france nordics belgium netherlands russia canada 
and spain to direct the planning review the work undertaken and 
assess the findings
taken together our audit work performed at individual component 
locations and at the head office addressed 87 of group revenues and 
83 of absolute group operating profit  ie the sum of the numerical 
values without regard to whether they were profits or losses for the 
relevant reporting units this gave us the evidence we needed for our 
opinion on the group financial statements as a whole
mat e r ia li t y
the scope of our audit is influenced by our application of materiality 
we set certain quantitative thresholds for materiality these together 
with qualitative considerations helped us to determine the scope of 
our audit and the nature timing and extent of our audit procedures 
and to evaluate the effect of misstatements both individually and on 
the financial statements as a whole 
based on our professional judgement we determined materiality for 
the financial statements as a whole as follows
overall group materiality £275 million 2013 £275 million
how we determined it 45 of underlying operating profit  
2013 5
rationale for benchmark 
applied
we note that underlying operating profit is 
the key measure used both internally by 
management and we believe externally by 
shareholders in evaluating the performance 
of the group this measure excludes sdis 
acquisition related expenses impairments 
tax on joint ventures and associates 
interest and tax we applied specific 
materiality levels for each of these items 
because of their particular sensitivity 
we agreed with the audit committee that we would report to them 
misstatements identified during our audit above £14m 2013 £14m 
as well as misstatements below that amount that in our view 
warranted reporting for qualitative reasons
goin g 	 concern
under the listing rules we are required to review the directors’ 
statement set out on page 101 in relation to going concern we have 
nothing to report having performed our review
as noted within the directors’ report on page 101 the directors have 
concluded that it is appropriate to prepare the financial statements 
using the going concern basis of accounting the going concern basis 
presumes that the group has adequate resources to remain in 
operation and that the directors intend it to do so for at least one 
year from the date the financial statements were signed as part of our 
audit we have concluded that the directors’ use of the going concern 
basis is appropriate
however because not all future events or conditions can be predicted 
these statements are not a guarantee as to the group’s ability to 
continue as a going concern 108 tui travel p l c annu al repo rt  accounts 2014
independent auditors’ report to the members of tui travel plc
continued
oth er 	 r equ i r ed 	 r epo r ti n g
c onsistenc y 	 of 	 other 	 informati on
c omp anie s 	 ac t 	 20 0 6 	 opinion s
in our opinion
• the information given in the strategic report and the directors’ 
report for the financial year for which the financial statements  
are prepared is consistent with the financial statements and
• the information given in the corporate governance statement  
set out on pages 67 to 72 with respect to internal control and  
risk management systems and about share capital structures  
is consistent with the financial statements
i s a s 	 uk 	  	i rel and 	 repor t ing
under isas uk  ireland we are required to report to you if in our opinion
• information in the annual report is
 – materially inconsistent with the information in the audited financial statements or
 – apparently materially incorrect based on or materially inconsistent with our knowledge of the group 
acquired in the course of performing our audit or
 – is otherwise misleading
we have no exceptions to report 
arising from this responsibility
• the statement given by the directors on page 102 in accordance with code provision c11 that they 
consider the annual report taken as a whole to be fair balanced and understandable and provides the 
information necessary for members to assess the group’s performance business model and strategy is 
materially inconsistent with our knowledge of the group acquired in the course of performing our audit
we have no exceptions to report 
arising from this responsibility
• the section of the annual report on page 7376 as required by code provision c38 describing the work of 
the audit committee does not appropriately address matters communicated by us to the audit committee
we have no exceptions to report 
arising from this responsibility
adequa c y 	 of 	 informati on 	 and 	 explanati ons 	 r eceiv ed
under the companies act 2006 we are required to report to you if in 
our opinion we have not received all the information and explanations 
we require for our audit we have no exceptions to report arising from 
this responsibility 
dir e c to r s ’ 	 r e m u n e rati o n
under the companies act 2006 we are required to report to you if in 
our opinion certain disclosures of directors’ remuneration specified 
by law are not made we have no exceptions to report arising from 
this responsibility 
c o r p o rate 	 g o v e r na n ce 	 st ate me n t
under the companies act 2006 we are required to report to you if in 
our opinion a corporate governance statement has not been prepared 
by the parent company we have no exceptions to report arising from 
this responsibility 
under the listing rules we are required to review the part of the 
corporate governance statement relating to the parent company’s 
compliance with nine provisions of the uk corporate governance code 
‘the code’ we have nothing to report having performed our review 
r espo nsi b i l iti es 	 f o r 	 th e 	 fina n cia l 	 sta tem ent s 	 a nd 	 th e 	 a u d it
our 	 r esponsibilities 	 and 	 those 	 of 	 the 	 dir ec tors
as explained more fully in the directors’ responsibilities statement set 
out on page 102 the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true 
and fair view
our responsibility is to audit and express an opinion on the financial 
statements in accordance with applicable law and isas uk  ireland 
those standards require us to comply with the auditing practices 
board’s ethical standards for auditors
this report including the opinions has been prepared for and only for 
the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 and for no other purpose we do 
not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown  
or into whose hands it may come save where expressly agreed by our 
prior consent in writing tui travel p l c annu al repo rt  accounts 2014 109
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
what 	 an 	 a udit 	 of 	 financial 	 st atement s 	 in v olv es
an audit involves obtaining evidence about the amounts and disclosures 
in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement whether 
caused by fraud or error this includes an assessment of 
• whether the accounting policies are appropriate to the 
group’s circumstances and have been consistently applied 
and adequately disclosed 
• the reasonableness of significant accounting estimates made  
by the directors and 
• the overall presentation of the financial statements 
we focus our work primarily in these areas by assessing the directors’ 
judgements against available evidence forming our own judgements 
and evaluating the disclosures in the financial statements
we test and examine information using sampling and other auditing 
techniques to the extent we consider necessary to provide a reasonable 
basis for us to draw conclusions we obtain audit evidence through 
testing the effectiveness of controls substantive procedures or a 
combination of both 
in addition we read all the financial and nonfinancial information in 
the annual report to identify material inconsistencies with the audited 
financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the 
knowledge acquired by us in the course of performing the audit 
if we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report
oth er 	 ma t ter
we have reported separately on the parent company financial 
statements of tui travel plc for the year ended 30 september 2014 
and on the information in the directors’ remuneration report described 
as having been audited
r o ger 	 de 	 p e yr eca v e 	 seni or 	 st atutor y 	 auditor 
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
london
3 december 2014
a the maintenance and integrity of the tui travel plc website is the responsibility of  
the directors the work carried out by the auditors does not involve consideration of these 
matters and accordingly the auditors accept no responsibility for any changes that may  
have occurred to the financial statements since they were initially presented on the website
b legislation in the united kingdom governing the preparation and dissemination of 
financial statements may differ from legislation in other jurisdictions 110 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september
2013 
restated
£m
r e ve nue 3 14619 15051
cost of sales 12928 13395
g r o s s 	 p r o fi t	 1691 1656
administrative expenses 1172 1376
share of lossesprofits of joint ventures and associates 12 20 17
o p e r at ing 	 p ro fi t 499 297
analysed as
underlying operating profit 1bii 3 612 589
separately disclosed items 4 1 24
acquisition related expenses 13a 67 65
impairment of goodwill 10 – 188
impairment of financial assets 12 29 – 
taxation on lossesprofits and interest of joint ventures and associates 12 18 15
499 297
financial income 5 15 19
financial expenses 5 152 147
n e t 	 fi n an c i al 	 e x p e n s e s 137 128
profit before tax 362 169
taxation charge 8 175 115
pro fi t 	 for 	 t h e 	 ye ar 187 54
attributable to
equity holders of the parent 183 51
noncontrolling interests 4 3
pro fi t 	 for 	 t h e 	 ye ar 	 187 54
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
pe n c e
year ended 
30 september 
2013
restated 
pence
b a s ic 	 an d 	 di l u t e d 	 e ar ning s 	 p e r 	 s h are 	 for 	 p ro fi t 	 at t r i b u t ab le 	 	
t o 	 t h e 	 e q ui t y 	 hol d e r s 	 o f 	 t h e 	c omp any 	 du r ing 	 t h e 	 ye ar
basic earnings per share 33 164 46
diluted earnings per share 33 163 46
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
consolidated income statement
for the year ended 30 september 2014 111 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september
2013
restated 
£m
pro fi t 	 for 	 t h e 	 ye ar 187 54
o t he r 	 c o mp re he n s i ve 	  lo s s   i nc o m e
i t e m s 	 t h at 	 w i ll 	 no t 	 b e 	 re c l a s s i fi e d 	 t o 	 p ro fi t 	 an d 	 l o s s 
remeasurements of defined benefit pension scheme 6c 192 11
tax on remeasurements of defined benefit pension schemes 8iii 45 14
i t e m s 	 t h at 	 w i ll 	 no t 	 b e 	 re c l a s s i fi e d 	 t o 	 p ro fi t 	 an d 	 l o s s 147 25
i t e m s 	 t h at 	 m ay 	 b e 	 s ub s e qu e n t l y 	 re c l a s s i fi e d 	 t o 	 p ro fi t 	 an d 	 l o s s 
foreign exchange translation 159 44
foreign exchange gains recycled through the consolidated income statement 1 1
cash flow hedges
– movement in fair value 26j 28 76
– amounts recycled to the consolidated income statement 26j 113 5
tax on cash flow hedges 8iii 17 22
available for sale financial assets
– movement in fair value 12 1 1
– amounts recycled to the consolidated income statement 12 1 –
i t e m s 	 t h at 	 m ay 	 b e 	 s ub s e qu e n t l y 	 re c l a s s i fi e d 	 t o 	 p ro fi t 	 an d 	 l o s s 92 15
o t h e r 	 c om p re h e n s i ve 	 l o s s 	 for 	 t h e 	 ye ar 	 n e t 	 o f 	 t a x 239 40
t o t al 	 c om p re h e n s i ve 	  l o s s   in c ome 	 for 	 t h e 	 ye ar 52 14
t o t al 	 c om p re h e n s i ve 	  l o s s   in c ome 	 for 	 t h e 	 ye ar
attributable to
equity holders of the parent 58 15
noncontrolling interests 6 1
t otal 52 14
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
consolidated statement of comprehensive income
for the year ended 30 september 2014 112 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
note
3 0 	 s e p t em b er 	
2014	
£m
30 september 
2013 
£m
n on  c u r re n t 	 a s s e t s
intangible assets 10 4299 4384
property plant and equipment 11 1267 1238
investments in joint ventures and associates 12 246 243
other investments 12 25 36
trade and other receivables 16 187 205
derivative financial instruments 26i 30 3
deferred tax assets 14 165 168
6219 6277
c ur re n t 	 a s s e t s
inventories 15 56 57
other investments 18 18 36
trade and other receivables 16 1292 1331
income tax recoverable 51 24
derivative financial instruments 26i 130 41
cash and cash equivalents 17 1374 1753
assets classified as held for sale 19 7 10
2928 3252
t o t al 	 a s s e t s 9147 9529
c ur re n t 	 l i a bil i t i e s
interestbearing loans and borrowings 20 89 594
retirement benefits 6c 4 3
derivative financial instruments 26i 186 147
trade and other payables 21 4858 4773
provisions for liabilities 22 284 277
income tax payable 67 76
5488 5870
n o n  c u r re n t 	 li a b i li t i e s
interestbearing loans and borrowings 20 774 1012
retirement benefits 6c 695 658
derivative financial instruments 26i 15 26
trade and other payables 23 104 79
provisions for liabilities 22 360 362
deferred tax liabilities 14 67 31
2015 2168
t o t al 	 l i ab i l i t ie s 7503 8038
n e t 	 a s s e t s 1644 1491
e q ui t y
called up share capital 24 122 112
share premium account 25 337 –
convertible bond reserve 25 67 91
other reserves 25 2537 2625
accumulated losses 25 1464 1378
t o t al 	 e q ui t y 	 at t r i b u t ab l e 	 t o 	 e qui t y 	 hol de r s 	 o f 	 t h e 	 p are n t 25 1599 1450
n o n  c o n t ro lling 	 in t e re s t s 25 45 41
t o t al 	 e q ui t y 25 1644 1491
the financial statements on pages 110 to 178 were approved by a duly authorised committee of the board of directors on 3 december 2014 
and signed on its behalf by
p eter 	 j 	 lon g	 	 	 	 	 	 	 	 	 william 	h	 w a g g ot t
chief executive         chief financial officer
company number 6072876
consolidated balance sheet
at 30 september 2014 113 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
consolidated statement of changes in equity
for the year ended 30 september 2014
other reserves
called up 
share 
capital 
£m
convertible 
bond 
reserve 
£m
merger 
reserve 
£m
translation 
reserve 
£m
hedging 
reserve 
£m
accumulated 
losses 
£m
e q u i t y 	
hol d e r s 	
o f 	 p a r e n t 	
£m
non 
controlling 
interests 
£m
t ot al	
e q u i t y 	
£m
at 1 october 2012 112 88 2523 129 25 1262 1565 44 1609
profit for the year restated – – – – – 51 51 3 54
other comprehensive incomeloss 
for the year restated – – – 56 58 34 36 4 40
total comprehensive incomeloss  
for the year – – – 56 58 17 15 1 14
t r an s ac t ion s 	 w i t h 	 ow n e r s
sharebased payment – charge for the year – – – – – 15 15 – 15
repurchase of own shares – – – – – 16 16 – 16
dividends – – – – – 130 130 2 132
acquisition of noncontrolling interests – – – – – 2 2 – 2
change in deferred tax rate on equity  
portion of convertible bond – 3 – – – – 3 – 3
a t 	 30 	 s e p t e m b e r 	 201 3 112 91 2523 185 83 1378 1450 41 1491
other reserves
called up 
share 
capital 
£m
share 
premium 
account 
£m
convertible 
bond 
reserve 
£m
merger 
reserve 
£m
translation 
reserve 
£m
hedging 
reserve 
£m
accumulated 
losses 
£m
e q u i t y 	
hol d e r s 	
o f 	 p a r e n t 	
£m
non 
controlling 
interests 
£m
t ot al	
e q u i t y 	
£m
at 1 october 2013 112 – 91 2523 185 83 1378 1450 41 1491
profit for the year – – – – – – 183 183 4 187
other comprehensive lossincome  
for the year – – – – 159 71 153 241 2 239
total comprehensive lossincome  
for the year – – – – 159 71 30 58 6 52
t r an s ac t ion s 	 w i t h 	 ow n e r s
sharebased payment – charge for 
the year – – – – – – 24 24 – 24
repurchase of own shares – – – – – – 33 33 – 33
dividends – – – – – – 150 150 3 153
acquisition of noncontrolling 
interests – – – – – – 4 4 1 3
conversion of convertible bonds 
net of deferred tax 10 337 24 – – – 47 370 – 370
a t 	 30 	 s e p t e m b e r 	 201 4 122 337 67 2523 26 12 1464 1599 45 1644
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
details of reserve movements are set out in note 25 to the consolidated financial statements 114 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
consolidated statement of cash flows
for the year ended 30 september 2014
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
 restated 
£m
pro fi t 	 for 	 t h e 	 ye ar 187 54
adjusted for
depreciation and amortisation 1011 250 248
impairment of intangible assets and property plant and equipment 1011 6 14
impairment of goodwill 10 – 188
equitysettled sharebased payment expenses 6d 19 15
profit on disposal of property plant and equipment and intangible assets 7 16 10
share of profit of joint ventures and associates 12 8 17
profit on sale of investment 18 1 –
lossprofit on foreign exchange 7 3 19
impairment of financial asset 12 28 –
change in value of assets held at fair value through profit and loss 12 1 5
dividends received from joint ventures and associates 12 11 43
past service credit and settlement gain recognised in consolidated income statement 6c 67 25
financial income 5 15 19
financial expenses 5 152 147
taxation 8 175 115
o p e r at ing 	 c a s h 	 flow 	 b e fore 	 c h ange s 	 in 	 wor k ing 	 c api t al 	 an d 	 p rov i s ion s 725 729
decrease in inventories 3 3
increasedecrease in trade and other receivables 35 63
increase in trade and other payables 117 59
belgian vat receipt 17 – 98
decreaseincrease in provisions and retirement benefits 19 11
c a s h 	 flow s 	 ge n e r at e d 	 f rom 	 op e r at ion s 791 963
interest paid 105 90
interest received 16 19
income taxes paid 125 110
c a s h 	 flow s 	 ge n e r at e d 	 f rom 	 op e r at ing 	 ac t i v i t ie s 577 782
i nve s t ing 	 ac t ivit ie s
proceeds from sale of property plant and equipment 226 192
acquisition of subsidiaries net of cash acquired 13b 21 10
proceeds from disposal of other investments 18 31 –
investment in joint ventures associates and other investments 12 27 41
acquisition of property plant and equipment 273 311
acquisition of intangible assets 10 107 102
c a s h 	 flow s 	 u s e d 	 in 	 inve s t ing 	 ac t i v i t ie s 171 272
f in an c ing 	 ac t i v i t ie s
proceeds from new loans and deposits taken 14 82
repayment of borrowings 43 44
repayment of finance lease liabilities 26 26
dividends paid to ordinary and noncontrolling interests 25 153 132
c a s h 	 flow s 	 u s e d 	 in 	 fi n an c ing 	 ac t i v i t ie s 208 120
n e t 	 in c re a s e 	 in 	 c a s h 	 an d 	 c a s h 	 e qui v ale n t s 198 390
cash and cash equivalents at start of the year 17 1753 830
noncash movement in bank overdrafts 1720 491 491
effect of foreign exchange on cash held 86 42
c a s h 	 an d 	 c a s h 	 e q ui v al e n t s 	 at 	 e n d 	 o f 	 t h e 	 ye ar	 17 1374 1753
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1 
movements in cash and net debt are presented in note 27a
cash flows generated from operating activities are analysed as
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
c a s h 	 flow s 	 ge n e r at e d 	 f rom 	 u n de r l y ing 	 op e r at ing 	 ac t i v i t ie s 577 684
belgian vat receipt 17 – 98
total cash flows generated from operating activities 577 782 tui travel p l c annu al repo rt  accounts 2014 115
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
notes to the consolidated financial statements
 
year ended 
30 september 
2013 
as previously 
reported
pence
impact of 
ias 19 
revised 
pence
year ended 
30 september 
2013
 restated
pence
basic earnings per share 54 08 46
diluted earnings per share 54 08 46
underlying earnings per share 308 07 301
diluted underlying earnings per share 296 07 289
had ias 19 not been revised for the year ending 30 september 2014 
profit after tax would have been £17m higher resulting from increased 
financial income financial expenses and taxation of £80m £58m and 
£5m respectively basic and diluted earnings per share would have 
been 15p and 13p higher respectively
 a  	 statement 	 of 	 compliance
the consolidated financial statements for the year ended 
30 september 2014 have been prepared and approved by the directors 
in accordance with international financial reporting standards and 
ifric interpretations as adopted by the european union adopted 
ifrs and the companies act 2006 applicable to companies reporting 
under ifrs the consolidated financial statements were approved on 
3 december 2014 
b  	 basis 	 of 	 pr eparati on
the consolidated financial statements are prepared on the historical cost 
basis other than derivative financial instruments financial instruments 
held for trading and financial instruments classified as available for sale 
which are stated at fair value noncurrent assets held for sale are stated 
at the lower of their carrying amount and fair value less costs to sell 
the consolidated financial statements are presented in the group’s 
presentation currency of sterling rounded to the nearest million each 
entity in the group determines its own functional currency and items 
included in the consolidated financial statements of each entity are 
measured using the currency of the primary economic environment in 
which the entity operates
 i  	 paren t 	c omp any
tui travel plc the company is a company incorporated and domiciled 
in england and wales and listed on the london stock exchange  
the registered office of the company is tui travel house crawley 
business quarter fleming way crawley west sussex rh10 9ql  
the company has elected to prepare its parent company financial 
statements in accordance with uk gaap
 ii  	 underl y ing 	 me a s ure s 	 o f 	 p ro fi t s 	 and 	 lo s s e s
the group believes that underlying operating profit underlying profit 
before tax and underlying earnings per share provide additional 
guidance to statutory measures to help understand the underlying 
performance of the business during the financial year the term 
underlying is not defined under ifrs it is a measure that is used by 
management to assess the underlying performance of the business 
internally and is not intended to be a substitute measure for adopted 
ifrs gaap measures the group defines these underlying measures 
as follows
underlying operating profit is operating profit from continuing 
operations stated before separately disclosed items acquisition 
related expenses impairment of goodwill and financial assets and 
interest and taxation on the group’s share of the results of joint 
ventures and associates 
underlying profit before tax is profit from continuing operations before 
taxation acquisition related expenses impairment of goodwill and 
financial assets interest and taxation of joint ventures and associates 
and separately disclosed items included within the operating result
1  	 a c c o u n ti n g 	 p o l i ci es
the accounting policies adopted in the preparation of these consolidated 
financial statements are consistent with those followed in the preparation 
of the group’s consolidated financial statements for the year ended 
30 september 2013 except for the adoption of the following new and 
amended international financial reporting standards ifrs that are 
applicable to the group for the year ended 30 september 2014 
•  ias 19 revised ‘employee benefits’
•  ifrs 13 ‘fair value measurement’
•  amendments to ifrs 7 disclosures – offsetting financial assets  
and financial liabilities 
•  iasb’s annual improvements project 2011
the group has also adopted the following amendments to current 
ifrss early
• amendment to ias 36 ‘impairment of assets’ in respect of fair 
value disclosures 
•  amendment to ias 39 ‘financial instruments recognition and 
measurement’ in respect of novation of derivatives and continuation 
of hedge accounting
the amendment to ias 12 ‘income taxes’ on deferred tax is not currently 
applicable to the group as it has no investment properties measured at 
fair value
with the exception of the impact following the revision to ias 19 which 
is disclosed below these new and amended standards have had no 
significant impact on the consolidated results or financial position and 
therefore no restatement of the prior year’s equity or profit has been 
presented additional disclosures in respect of the amendments to 
ifrs 7 are provided within these consolidated financial statements 
where applicable
i a s 	 1 9 	  r e vised 	 ‘e mplo y ee 	 benefit s’
the revision to ias 19 ‘employee benefits’ makes significant changes to 
the recognition and measurement of defined benefit pension expense 
and termination benefits and enhances the disclosures for all employee 
benefits the most significant impact for the group is that interest 
expense is now calculated by applying the discount rate to the net 
defined benefit liability this replaces the interest cost on the defined 
benefit obligation and the expected return on plan assets
the revised standard has retrospective application and consequently the 
relevant charges or income in the consolidated income statement and 
the consolidated statement of comprehensive income for the financial 
year ended 30 september 2013 have been restated the impact on 
opening retained earnings or net assets has not been dealt with as a 
prior year adjustment on the grounds of materiality 
the impact on the results for the year ending 30 september 2013 was 
as follows
 
year ended 
30 september 
2013  
as previously 
reported
£m
impact of 
ias 19 
revised 
£m
year ended 
30 september 
2013
 restated 
£m
financial income 86 67 19 
financial expenses 202 55 147
net financial expenses 116 12 128
profit before tax 181 12 169
taxation charge 118 3 115
profit for the year 63 9 54
other comprehensive loss 49 9 40 116 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
covenant limits at the date of the balance sheet forecasts reviewed by 
the board including forecasts adjusted for significantly worse economic 
conditions show continued compliance with these covenants for both 
covenants earnings are calculated on an underlying basis as described 
in note 1bii on the basis of its forecasts both base case and 
adjusted as described above and available facilities the board has 
concluded that the going concern basis of preparation continues to 
be appropriate 
this is the case both in the scenario that the merger with tui ag does 
not proceed which is considered unlikely and the scenario once the 
merger is completed as tui ag has agreed to provide facilities to enable 
based on current expectations tui travel plc and its subsidiaries to 
continue operations for the foreseeable future
 c  	 basis 	 of 	 consolidati on
the group financial statements consolidate those of the company and 
its subsidiaries together referred to as the group and equity accounts 
for the group’s interest in joint ventures and associates the parent 
company financial statements present information about the company 
as a separate entity and not about the group accounting policies of 
subsidiaries joint ventures and associates are amended where necessary 
to be consistent with those adopted by the group where audited 
financial statements are not coterminous with those of the group the 
financial information is derived from the last audited accounts available 
and unaudited management accounts for the period up to the group’s 
balance sheet date
 i  	 s ub s idi arie s
subsidiaries are entities controlled by the group control exists when 
the group has the power directly or indirectly to govern the financial 
and operating policies of an entity so as to obtain benefits from its 
activities in assessing control potential voting rights that are currently 
exercisable or convertible are taken into account the financial 
statements of subsidiaries are included in the consolidated financial 
information from the date that control commences until the date that 
control ceases
 ii  	 join t 	 ven t ure s 	 and 	 a s s oc i at e s
joint ventures are jointly controlled entities whose activities the group 
has the power to control jointly established by contractual agreement 
associates are those entities in which the group has the ability to 
exercise significant influence but not control over the financial and 
operating policies the consolidated financial statements include the 
group’s share of the total recognised income and expense and changes 
in equity of joint ventures and associates on an equity accounted basis 
from the date that joint control or significant influence respectively 
commences until the date that it ceases associates and joint ventures 
are recorded at cost adjusted for postacquisition changes in the 
group’s share of net assets of the entity including goodwill net of 
accumulated impairment loss when the group’s share of losses 
exceeds the carrying amount of the joint venture or associate the 
carrying amount is reduced to £nil and recognition of further losses 
is discontinued except to the extent that the group has incurred legal 
or constructive obligations or made payments on behalf of the joint 
venture or associate
 iii  	 n on  c on t r ollin g 	 in t e r e s t s
in the consolidated balance sheet the share of net assets attributable 
to noncontrolling interests is disclosed as a separate component 
of equity after share capital and reserves the consolidated income 
statement discloses the amount of the result for the year attributable 
to noncontrolling interests and which is excluded from earnings per 
share calculations
1  	 a c c o u n ti n g 	 p o l i ci es 	continued
underlying earnings used in the calculation of underlying earnings per 
share is profit after tax from continuing operations excluding acquisition 
related expenses impairment of goodwill and financial assets and 
separately disclosed items included within the operating result 
for the purpose of this calculation an underlying tax charge is used 
which excludes the tax effects of separately disclosed items acquisition 
related expenses goodwill and financial asset impairment charges and 
separately disclosed tax items
it should be noted that the definitions of underlying items being used 
in these consolidated financial statements are those used by the group 
and may not be comparable with the term ‘underlying’ as defined by 
other companies both within the same sector or elsewhere 
r econciliation 	 of 	 underlying 	 oper ating 	 pr ofit 	 to 	 underlying 	 pr ofit 	
be fore 	 t a x
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014 	
£m
year ended 
30 september 
2013
restated 
£m
un de r l y ing 	 op e r at ing 	 p ro fi t 3 612 589 
net underlying financial expenses 5 137 128
underlying profit before tax 475 461 
 iii  	 s ep ar at el y 	 di s c lo s e d 	 it em s
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 note 4 
 iv  	 bu s ine s s 	 and 	 fi n anc i al 	 review
the group’s business activities together with factors likely to affect 
its future development performance and position are set out in the 
business and financial review section in addition notes 26 and 34 set 
out the group’s objectives policies and processes for managing its 
capital financial risks financial instruments and hedging activities as 
well as its exposures to credit and liquidity risk 
 v  	 f unding 	 and 	 liquidit y
the board remains satisfied with the group’s funding and 
liquidity position at 30 september 2014 the main sources of 
debt funding included 
• a total of £1225m bank revolving credit facilities which mature 
in june 2018 
• £175m of bonding and letter of credit facilities which mature 
in june 2018
• £400m convertible bond due april 2017
• £150m bank syndicated facility which matures in april 2016 and 
which is only available in the event of a requirement to redeem 
the group’s convertible bond and
• £382m of drawn finance lease obligations with repayments 
up to june 2024
the ratio of earnings before interest taxation depreciation amortisation 
and operating lease rentals ebitdar to fixed charges being the 
aggregate amount of interest and any other finance charges in respect 
of borrowings and including all payments under operating leases and 
the ratio of net debt to earnings before interest taxation depreciation 
and amortisation ebitda which the board believes to be the most 
useful measures of cash generation and gearing as well as being the 
main basis for the group’s credit facility covenants are well within the  tui travel p l c annu al repo rt  accounts 2014 117
 
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business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
 ii  	 f or eig n 	 op e r at ion s
the assets and liabilities of foreign operations including goodwill and 
fair value adjustments arising on consolidation are translated from 
functional currency to sterling at the foreign exchange rates ruling at the 
balance sheet date the revenues and expenses of overseas operations 
are translated from functional currency at rates approximating to the 
foreign exchange rates ruling at the dates of the transactions foreign 
exchange differences arising on the translation are recognised in other 
comprehensive income through the translation reserve
foreign exchange gains and losses arising from monetary items 
receivable from or payable to a foreign operation the settlement 
of which is neither planned nor likely in the foreseeable future are 
considered to form part of a net investment in a foreign operation 
and are recognised directly in equity in the translation reserve 
 iii  	n e t 	 inve s t men t 	 in 	 foreig n 	 op er at ion s
foreign currency differences arising on the retranslation of a financial 
liability designated as a hedge of a net investment in a foreign operation 
are recognised in the consolidated statement of comprehensive income 
to the extent that the hedge is effective and are presented within equity 
in the translation reserve to the extent that the hedge is ineffective 
such differences are recognised in profit or loss when the hedged part 
of a net investment is disposed the relevant amount in the translation 
reserve is transferred to profit or loss as part of the profit or loss 
on disposal
e  	 financial 	 instrument s
 i  	 f in anc i al 	 a s s e t s
financial assets are either classified as loans and receivables available 
for sale financial assets or financial assets at fair value through profit 
or loss financial assets include cash and cash equivalents trade 
receivables loans trade and other investments including financial 
deposits within the group’s control derivative financial instruments and 
other receivables but exclude financial deposits outside the group’s 
control prepayments and taxes the group determines the classification 
of its financial assets at initial recognition financial assets are recognised 
initially at fair value normally being the transaction price plus in the 
case of financial assets not at fair value through profit or loss directly 
attributable transaction costs the subsequent measurement of 
financial assets depends on their classification as follows
loans and receivables
loans and receivables are nonderivative financial assets with fixed or 
determinable payments that are not quoted in an active market such 
assets are carried at amortised cost using the effective interest method 
if the time value of money is significant gains and losses are recognised 
in income when the loans and receivables are derecognised or impaired 
as well as through the amortisation process this category of financial 
assets includes trade and other receivables
available for sale financial assets
available for sale financial assets are those nonderivative financial 
assets that are not classified as loans and receivables or financial assets 
at fair value through profit or loss after initial recognition available 
for sale financial assets are measured at fair value with gains or losses 
recognised within other comprehensive income until the investment 
is derecognised or until the investment is determined to be impaired 
at which time the cumulative gain or loss previously reported in other 
comprehensive income is included in the consolidated income statement 
note 1wii describes the basis on which fair value is determined
where the group has a written put option in respect of a noncontrolling 
interest and has an unavoidable obligation to purchase the shareholding 
the obligation is recorded as a financial liability at fair value rather than 
being reported as a separate component of equity changes to the fair 
value of the financial liability are recorded at each period end in the 
income statement within financial income or financial expenses
on purchase or sale of a noncontrolling interest held in a group 
subsidiary the group recognises increases or decreases in the value of 
its interest directly in equity providing there is no overall change in 
control as such these transactions do not result in goodwill or gains and 
losses being recognised in the consolidated income statement when 
control is lost any remaining interest in equity is remeasured to fair value 
and a gain or loss is recognised in the consolidated income statement 
 i v  	 t r an s a c t ion s 	 e limin at e d 	 on 	 c on s oli d at ion
intragroup balances and any unrealised gains or income and expenses 
arising from intragroup transactions are eliminated in preparing 
the consolidated financial statements unrealised gains arising from 
transactions with associates and jointly controlled entities are eliminated 
to the extent of the group’s interest in the entity unrealised losses are 
eliminated in the same way as unrealised gains but only to the extent 
that there is no evidence of impairment
 v  	 ac qui s i t ion 	 in 	 s t age s
where the group gains control of a subsidiary undertaking through 
a step acquisition the existing interest owned is remeasured at fair value 
with the difference between fair value and book value being recognised 
in the income statement the accounting impact of changes in share 
ownership which do not affect control is accounted for directly in equity
 vi  	 ac qui s i t ion 	 rel at e d 	 expen s e s
acquisition related expenses comprise amortisation of business 
combination intangibles other acquisition and merger related expenses 
and remuneration for postcombination services directly attributable 
acquisition costs are expensed in the consolidated income statement 
as incurred 
 v ii  	 c on t inge n t 	 c on s i d e r at ion
contingent consideration is accounted for at fair value on the acquisition 
date with subsequent changes in the fair value being recognised in the 
income statement contingent consideration dependent upon continuing 
service of an employee is charged to the income statement over the 
related service period within acquisition related expenses note 13 
and is included within operating profit contingent consideration is 
discounted to present value where the time value of money is material 
d  	 f or eign 	 curr enc y
 i  	 f oreig n 	 c ur renc y 	 t r an s ac t ion s
transactions in foreign currencies are initially recorded at the rate 
approximating to the foreign exchange rates ruling at the dates of the 
transaction for each entity monetary assets and liabilities denominated 
in foreign currencies at the balance sheet date are translated at the 
functional currency spot rate ruling at the reporting date foreign 
exchange differences arising on translation are recognised in the 
income statement except for differences arising on the retranslation 
of a financial liability designated as a hedge of the net investment 
in a foreign operation or qualifying cash flow hedges which are 
recognised directly in equity 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 at foreign exchange rates 
ruling at the dates the fair values were determined 118 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
convertible bonds
convertible bonds are separated into three components liability 
issuer call option and equity at inception each component is 
recognised separately
the initial fair value of the liability component of the convertible 
bond is determined using the market interest rate for an equivalent 
nonconvertible bond and is subsequently recorded at an amortised 
cost basis using the effective interest method until extinguished on 
conversion or maturity of the bonds the issuer call option is fair 
valued using a valuation model and is measured at each balance sheet 
date with changes in fair value recognised in the income statement 
the remainder of the proceeds are recognised in shareholders’ equity 
in a separate convertible bond reserve
issue costs are apportioned between the liability and equity components 
of a convertible bond based on the allocation of proceeds to the liability 
and equity components when the instruments are first recognised
derivatives
derivatives are accounted for in accordance with the policy in 
note 1eiii
derecognition
the group derecognises a financial liability when the contractual 
obligations to pay the contractual cash flows on the financial liability 
are discharged cancelled or expire 
for convertible bonds derecognition occurs on the date on which an 
irrevocable conversion notice to convert the bond to ordinary shares 
is received from the bond holder the carrying value of the bond at 
the date of derecognition is extinguished and replaced by the nominal 
value of the ordinary share capital being issued with the balance being 
recognised in the share premium account notwithstanding that the 
relevant ordinary shares may not have been legally issued on the date 
of derecognition no gains or losses are recognised in the consolidated 
income statement on conversion
 iii  	 deri v at i ve 	 fi n anc i al 	 in s t r umen t s
the group uses derivative financial instruments to hedge its exposure 
to foreign exchange interest rate and fuel price risks arising from 
operational financing and investment activities in accordance with its 
treasury policy the group does not hold or issue derivative financial 
instruments for trading purposes however derivatives that do not 
qualify for hedge accounting are accounted for as trading instruments
derivative financial instruments are initially recognised at fair value 
on the date a derivative contract is entered into and are subsequently 
remeasured at fair value the method of recognising the resulting gain 
or loss depends on whether the derivative is designated as a hedging 
instrument and if so the nature of the item being hedged 
the gain or loss on remeasurement to fair value on derivatives not 
designated as hedging instruments is recognised immediately in the 
income statement against the opposite line of income or expense 
the accounting policy for derivatives that qualify for hedge accounting 
is included in note 1f
1  	 a c c o u n ti n g 	 p o l i ci es 	continued
financial assets at fair value through profit or loss
financial assets at fair value through profit or loss are measured at 
fair value after initial recognition the gain or loss is included in the 
consolidated income statement note 1w describes the basis on 
which fair value is determined
derivatives
derivatives are accounted for in accordance with the policy in 
note 1eiii
cash and cash equivalents
cash and cash equivalents comprise cash balances and call deposits 
which are readily convertible to known amounts of cash and which are 
subject to insignificant risk of changes in value and have an original 
maturity of three months or less where the group operates centrally 
pooled accounts and has the intention and ability to pool account 
balances the net cash or overdraft position is disclosed where the 
intention or ability to pool balances together is absent the cash and 
overdraft are disclosed on a gross basis in the consolidated balance 
sheet and the overdraft is excluded from cash and cash equivalents 
for the purpose of the consolidated statement of cash flows
where cash and cash equivalent balances are not available for use by 
the group for example to meet regulatory requirements this fact is 
disclosed and the balances are excluded from available net debt
derecognition
the group derecognises a financial asset when the contractual 
rights to the cash flows from the asset expire or it transfers the 
rights to receive the contractual cash flows on the financial asset 
in a transaction in which substantially all the risks and rewards 
of ownership of the financial asset are transferred any interest 
in transferred financial assets that is created or retained by the 
group is recognised as a separate asset or liability
 ii  	 f in anc i al 	 li abili t ie s
financial liabilities are either classified as financial liabilities measured at 
amortised cost or financial liabilities at fair value through profit or loss 
financial liabilities include trade and other payables excluding tax 
and social security and deferred income accruals finance debt and 
derivative financial instruments the group determines the classification 
of its financial liabilities at initial recognition financial liabilities are 
recognised initially at fair value normally being the transaction price plus 
in the case of financial liabilities not at fair value through profit or loss 
directly attributable transaction costs the subsequent measurement 
of financial liabilities depends on their classification as follows
financial liabilities measured at amortised cost
all financial liabilities are initially recognised at fair value for interest
bearing loans and borrowings this is the fair value of the proceeds 
received net of issue costs associated with the borrowing after initial 
recognition financial liabilities other than those at fair value through 
profit or loss are subsequently measured at amortised cost using the 
effective interest method amortised cost is calculated by taking into 
account any issue costs and any discount or premium on settlement 
gains and losses arising on the repurchase settlement or cancellation 
of liabilities are recognised respectively in interest other revenues and 
finance costs this category of financial liabilities includes trade and 
other payables tui travel p l c annu al repo rt  accounts 2014 119
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
when a hedging instrument no longer meets the criteria for hedge 
accounting expires or is sold terminated or exercised or the entity 
revokes designation of the hedge relationship hedge accounting is 
discontinued prospectively if the hedged forecast transaction is still 
expected to occur the cumulative gain or loss at that point remains in 
equity and is recognised in accordance with the above policy when the 
transaction occurs if the hedged transaction is no longer expected to 
take place the cumulative unrealised gain or loss recognised in equity 
is recognised in the consolidated income statement immediately 
 g 	 r ev enue
revenue represents the aggregate amount earned from inclusive tours 
scheduled and charter flying provision of incoming agency destination 
services travel agency and intermediary commission received and other 
services supplied to customers in the ordinary course of business 
revenue excludes intragroup transactions and is stated after the 
deduction of trade discounts and sales taxes revenue is reported gross 
of fixed charges which are a liability of the tour operator or airline 
these include air passenger duty and other per passenger charges 
and levies including the atol protection contribution in the uk
 i  	 revenue 	 recog ni t ion
revenue is recognised in the consolidated income statement when 
the significant risks and rewards of ownership have been transferred 
to the buyer travel agency and intermediary commissions and other 
revenues received from the sale of third party product are recognised 
when they are earned typically on receipt of final payment revenue 
in respect of our own holidays and services is recognised on the date 
of departure revenue from individual travel modules directly booked 
by the customer with airlines hotels and incoming agencies is recognised 
when the customer departs or uses the respective service revenue 
from the sale of travel insurance is recognised at the point of sale
no revenue is recognised if there are significant uncertainties regarding 
recovery of the consideration due or associated costs
 ii  	c lien t 	 monie s 	 rec ei ve d 	 in 	 ad v anc e 	  de ferre d 	 income 
client monies received at the balance sheet date relating to holidays 
commencing and flights departing after the year end are deferred 
and included within trade and other payables
 iii  	 me a s uremen t 	 o f 	 revenue
where the group acts as principal revenue is stated at the contractual 
value of services provided
where the group acts as an agent between the service provider and the 
end customer revenue is presented on a net basis as the difference 
between the sales price to the customer and the cost of the services 
purchased and not the total transaction sales value businesses are 
identified as intermediaries dependent on a number of criteria 
principally including the control exercised over the provision of service 
inventory risk and customer credit risk
 i v  	 a irc r af t 	 le a s e 	 income
operating lease rental income is recognised in operating income 
as earned on a straightline basis over the lease term 
 iv  	 s h are 	 c api t al
ordinary shares are classified as equity incremental costs directly 
attributable to the issue of ordinary shares and share awards are 
recognised as a deduction from equity net of any tax effects
in respect of ordinary shares being issued following the receipt of an 
irrevocable conversion notice from holders of the convertible bonds 
these are considered to be fully paid on the date of the extinguishment 
of the liability and included within the share capital notwithstanding that 
they may not have been legally issued on the date of derecognition
f  	h edge 	 a ccountin g
the group designates certain derivatives as cash flow hedges of highly 
probable forecast transactions 
on initial designation of the hedge the group formally documents the 
relationship between the hedging instruments and hedged items 
including the risk management objectives and strategy in undertaking 
the hedge transaction together with the methods that will be used 
to assess the effectiveness of the hedging relationship the group 
makes an assessment both at the inception of the hedge relationship 
as well as on an ongoing basis as to whether the hedging instruments 
are expected to be ’highly effective’ in hedging cash flows during the 
period for which the hedge is designated and whether the actual 
results of each hedge are within a range of 80125 the transaction 
being hedged should be highly probable to occur and should present 
an exposure to variations in cash flows that could ultimately affect 
reported net income 
where a derivative financial instrument is designated as a hedge of the 
variability in cash flows arising from a recognised asset or liability or 
a highly probable forecast transaction the effective part of any fair 
value gain or loss on the derivative financial instrument is recognised 
directly in the hedging reserve any ineffective portion of the hedge 
is recognised immediately within the consolidated income statement
when the forecast transaction subsequently results in the recognition 
of a nonfinancial asset or nonfinancial liability the associated 
cumulative gain or loss is removed from the hedging reserve and is 
included in the initial cost or other carrying amount of the nonfinancial 
asset or liability if a hedge of a forecast transaction subsequently 
results in the recognition of a financial asset or a financial liability 
the associated gains and losses that were recognised directly in equity 
are reclassified into the consolidated income statement in the same 
period or periods during which the asset acquired or liability assumed 
affects profit or loss
for cash flow hedges other than those covered by the preceding two 
paragraphs the associated cumulative gain or loss is removed from 
equity and recognised in the consolidated income statement in the 
same period or periods during which the hedged forecast transaction 
affects the consolidated income statement
prospective hedge testing is performed at the inception of the hedge 
relationship and subsequently at each balance sheet date through 
comparison of the critical terms of the hedged forecast transaction 
and the hedging instrument using regression analysis retrospective 
hedge testing is performed at each reporting date principally using 
a dollar offset analysis comparing the cumulative changes in the fair 
values of the forecast hedged transaction and the hedging instrument 120 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
 iii  	 s h are  b a s e d 	 p a y men t 	 t r an s ac t ion s
the group’s share award programmes allow certain group employees 
to acquire shares of the company these shares are awarded by the 
company for equitysettled transactions the fair value of services 
is measured by the fair value of the shares at the time awarded and 
is recognised as an employee expense with a corresponding increase 
in equity the fair value is spread over the period during which the 
employees become entitled to the awards
for cashsettled transactions the resulting liability for the group is 
charged to expenses at its fair value as at the date of the performance 
of the service by the beneficiary until payment of this liability the 
fair value of the liability is remeasured at every reporting date and 
all changes are included in the consolidated income statement
for both types of sharebased payment transactions the fair value 
of the awards is measured using option valuation models taking into 
account the terms and conditions upon which the awards were made 
including market performance conditions and the impact of nonvesting 
conditions the amount recognised as an expense is adjusted to reflect 
the actual number of share awards that vest except where forfeiture 
is due only to market based performance conditions not meeting the 
threshold for vesting
 i v  	 o w n 	 s h are s 	 he ld 	 by 	 t he 	e mp lo yee 	 b ene fi t 	t r u s t	
transactions of the groupsponsored employee benefit trust the 
trust are included in the group’s consolidated financial statements 
in particular the trust’s purchase of shares in the company is debited 
directly in equity to retained earningsaccumulated losses
 v  	 s hor t t erm 	 b ene fi t s
shortterm employee benefits are measured on an undiscounted basis 
and are expensed as the related service is provided
 j 	 financial 	 income 	 and 	 expenses
financial income comprises interest income on cash and cash 
equivalents invested interest income is recognised as it accrues in 
profit or loss using the effective interest method foreign currency 
gains and losses are reported on a net basis
financial expenses comprise interest expense on borrowings unwinding 
of the discount on provisions and changes in the fair value of financial 
assets or liabilities at fair value through profit or loss all borrowing costs 
are recognised in profit or loss using the effective interest method 
foreign currency gains and losses are reported on a net basis
k 	t axati on
income tax comprises current and deferred tax income tax is recognised 
in the consolidated income statement except to the extent that it relates 
to items recognised in other comprehensive income or directly in equity 
in which case the related tax is also recognised in other comprehensive 
income or directly in equity as appropriate
 i  	c urren t 	 t a x
current tax is the expected tax payable on the taxable income for 
the period using tax rates enacted or substantively enacted at the 
balance sheet date and any adjustment to tax payable in respect of 
previous periods
1  	 a c c o u n ti n g 	 p o l i ci es 	continued 
h  	e xpenses
 i  	 o per at ing 	 le a s e 	 p a yment s
payments made under operating leases are recognised in the 
consolidated income statement on a straightline basis over the term of 
the lease lease incentives received are recognised in the consolidated 
income statement as an integral part of the total lease expense over 
the term of the lease
 ii  	 f in anc e 	 le a s e 	 p a yment s
minimum lease payments are apportioned between the finance charge 
and the reduction of the outstanding liability the finance charge is 
allocated to each period during the lease term so as to produce a 
constant periodic rate of interest on the remaining balance of the liability
 iii  	 m ar k e t ing 	 and 	 o t her 	 direc t 	 s ale s 	 co s t s
marketing advertising and other promotional costs including those 
related to the production of brochures are expensed when the benefit 
of the goods or services is made available to the group in particular 
brochure and advertising costs are expensed to the consolidated 
income statement when the group’s suppliers have delivered the 
relevant material 
i  	e mplo y ee 	 benefit s
 i  	 de fi ne d 	 cont r ibu t ion 	 pl an s
obligations for contributions to defined contribution pension plans 
are recognised as an expense in the consolidated income statement 
as incurred
 ii  	 de fi ne d 	 bene fi t 	 pl an s
the group’s net obligation in respect of defined benefit pension plans 
is calculated separately for each plan by estimating the amount of 
future benefit that employees have earned in return for their service 
in current and prior periods that benefit is discounted to determine 
its present value and the fair value of any plan assets is deducted in 
calculating the overall net liability the liability discount rate is the yield 
at the balance sheet date on aa creditrated bonds denominated in 
the currency of and having the same maturity dates approximating to 
the terms of the group’s obligations the calculation is performed by 
a qualified actuary using the projected unit credit method
where the calculation results in a benefit to the group the asset 
recognised is limited to the present value of any future refunds from 
the plan or reductions in future contributions to the plan which are 
under the control of the group
when the benefits of a plan are amended the portion of the  
increasedecrease in benefit relating to past services by employees 
is recognised as an expenseincome in the consolidated income 
statement immediately
remeasurements of the net defined pension liability including actuarial 
gains and losses are recognised immediately in other comprehensive 
income either monthly or annual contributions are made to funded 
schemes the current service cost is included in the consolidated income 
statement as a personnel expense
the interest charge on the net retirement benefit obligation is calculated 
by applying the applicable discount rate to the net retirement benefit 
obligations at the beginning of the financial year taking account of any 
changes in the net retirement benefit obligation during the year as a 
result of contributions and benefit payments  tui travel p l c annu al repo rt  accounts 2014 121
 
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shareholder information
 o  	i ntan gible 	 asset s
 i  	 g ood w ill
all business combinations are accounted for by applying the purchase 
method goodwill represents amounts arising on acquisition of 
subsidiaries joint ventures and associates goodwill represents the 
difference between the fair value of consideration paid or payable and 
the net fair value of the identifiable assets liabilities and contingent 
liabilities acquired identifiable intangibles such as brands and 
customer relationships are those which can be sold separately or 
which arise from contractual or legal rights regardless of whether 
those rights are separable and the fair value can be reliably measured 
goodwill is stated at cost less any accumulated impairment losses 
goodwill is allocated to those cash generating units cgus expected 
to benefit from the business combination and is not amortised but 
tested annually for impairment impairment testing is based on assets 
grouped at the lowest level at which goodwill is monitored for internal 
management purposes in respect of joint ventures and associates the 
carrying amount of goodwill is included in the carrying amount of the 
investment in the joint venture or associate
fair value adjustments are made in respect of acquisitions if at 
the balance sheet date the amounts of fair values of the acquiree’s 
identifiable assets and liabilities can only be established provisionally 
then these values are used any adjustments to these values are taken 
as adjustments to goodwill and are recorded within 12 months of the 
acquisition negative goodwill arising on an acquisition is recognised in 
the income statement upon acquisition
 ii  	c omp u t er 	 s o f t w are 	 s o f t w are 	 in 	 deve lop men t 	 and 	 o t her	
in t ang ib le 	 a s s e t s
computer software consists of all software that is not an integral part 
of the related computer hardware and is stated at cost less accumulated 
amortisation and impairment losses 
costs associated with maintaining computer software programmes 
are recognised as an expense as incurred development costs that 
are directly attributable to the design and testing of identifiable and 
unique software products controlled by the group are recognised 
as intangible assets when the following criteria are met
• it is technically feasible to complete the software product so that 
it will be available for use
• management intends to complete the software product and use 
or sell it
• there is an ability to use or sell the software product
• it can be demonstrated how the software product will generate 
probable future economic benefits
• adequate technical financial and other resources to complete the 
development and to use or sell the software product are available and
• the expenditure attributable to the software product during its 
development can be reliably measured
directly attributable costs that are capitalised as part of the software 
product include the software development employee costs and an 
appropriate portion of relevant overheads other development 
expenditures that do not meet these criteria are recognised as an 
expense as incurred development costs previously recognised as 
an expense are not recognised as an asset in a subsequent period 
licences and order books assets acquired in a business combination 
are recognised at fair value at the acquisition date as detailed in 
note 1 wi licences have a finite useful life and are carried at cost 
less accumulated amortisation 
 ii  	 de fer re d 	 t a x
deferred tax is provided or recognised using the balance sheet liability 
method providing for temporary differences between the carrying 
amounts of assets and liabilities for financial reporting purposes and 
the amounts used for taxation purposes the following temporary 
differences are not provided for the initial recognition of goodwill 
not deductible for tax purposes the initial recognition of assets or 
liabilities in a transaction that is not a business combination and 
differences relating to investments in subsidiaries to the extent that 
they will probably not reverse in the foreseeable future the amount  
of deferred tax asset recognised is based on the expected manner 
of realisation or settlement of the carrying amount of assets and 
liabilities using the tax rate at which the asset or liability is expected to 
reverse in future periods based on tax laws enacted or substantively 
enacted at the balance sheet date 
deferred tax assets and liabilities are offset when there is a legally 
enforceable right to offset current tax assets against current tax 
liabilities and when the deferred tax assets and liabilities relate to 
income taxes levied by the same tax authority on either the taxable 
entity or different taxable entities where there is an intention to settle 
the balances on a net basis a deferred tax asset is recognised only to 
the extent that it is probable that future taxable profits will be available 
against which the asset can be utilised deferred tax assets are reduced 
to the extent that it is no longer probable that the related tax benefit 
will be realised  
l  	 dividends
dividend distribution to the company’s shareholders is recognised as  
a liability 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 interim dividends are 
recognised when paid unpaid dividends that do not meet these 
criteria are disclosed in the notes to the financial statements
m 	e arnin gs 	 per 	 shar e
the group presents basic and diluted earnings per share eps data 
for its ordinary shares basic eps is calculated by dividing the profit 
or loss attributable to ordinary shareholders of the company by the 
weighted average number of ordinary shares outstanding during the 
period diluted eps is determined by adjusting the weighted average 
number of ordinary shares outstanding for the effects of all dilutive 
potential ordinary shares eps measures for continuing operations 
have been presented in accordance with ias 33 the group also presents 
a basic and diluted underlying eps measure based on underlying 
earnings as defined in note 1bii above further details of the eps 
calculation are presented in note 33
n  	i n v estment s
unless designated at fair value through profit and loss trade investments 
are classified as available for sale assets and are included under 
noncurrent assets they are recorded at fair value with movements in 
value taken to other comprehensive income any impairment to value 
is recorded in the income statement shortterm investments in debt 
and equity securities which are held for trading are classified as current 
assets and are stated at fair value with any resultant gain or loss 
recognised in the income statement 122 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
the cost of major overhauls of owned airframes and engines is 
capitalised and depreciated over the period until the next scheduled 
major overhaul 
the depreciation methods useful economic lives and residual values 
are reassessed annually revisions to useful economic lives and residual 
values are accounted for prospectively from the date of change
freehold land assets under construction and advance payments 
including capitalised borrowing costs for future aircraft are not 
depreciated upon delivery of the aircraft advance payments for 
aircraft that are subsequently owned are recategorised to aircraft 
assets and depreciation is commenced advance payments for aircraft 
that are sold and leased back on delivery under an operating lease 
are accounted for as a disposal where the aircraft is leased back on 
a finance lease as well as the disposal of the advance payment an 
addition to aircraft is recorded at an amount equal to the lower of 
fair value of the aircraft and the present value of the minimum lease 
payments at the inception of the lease
 i v  	 borrow ing 	 co s t s
in respect of borrowing costs relating to qualifying assets the group 
capitalises borrowing costs directly attributable to the acquisition 
construction or production of a qualifying asset as part of the cost 
of that asset the group has capitalised borrowing costs with respect 
to predelivery payments relating to aircraft
 v  	 s ale 	 and 	 le a s e b ac k 	 t r an s ac t ion s
when a sale and leaseback results in a finance leaseback any gain 
on the sale is deferred and recognised as income over the lease term 
any loss on the sale is immediately recognised in the profit and loss 
account if there is evidence that the asset’s carrying value exceeds 
the fair value 
if the leaseback is classified as an operating lease any gain is recognised 
immediately if the sale and leaseback terms are demonstrably at fair 
value otherwise the sale and leaseback is accounted for as follows
• if the sale price is below fair value the gain or loss is recognised 
immediately other than to the extent that a loss is compensated for 
by future rentals at a belowmarket price then the loss is deferred 
and amortised over the period that the asset is expected to be used
• if the sale price is above fair value any gain is deferred 
and amortised over the useful life of the asset
• if the fair value of the asset is less than the carrying amount 
of the asset at the date of the transaction then that difference 
is recognised immediately as a loss on the sale
 q  	 i m pa ir me n t s
 i  	 f in anc i al 	 a s s e t s
a financial asset is assessed at each reporting date to determine 
whether there is any objective evidence that it is impaired or whenever 
events or changes in circumstances indicate that the carrying amount 
may not be recoverable a financial asset is considered to be impaired 
if objective evidence indicates that one or more events have had a 
negative effect on the estimated future cash flows of that asset
an impairment loss in respect of a financial asset is calculated as the 
difference between its carrying amount and its recoverable amount 
an impairment loss in respect of an available for sale financial asset 
is calculated by reference to its fair value the recoverable amount 
of the group’s receivables which are carried at amortised cost is 
calculated as the present value of estimated future cash flows 
discounted at the original effective interest rate ie the effective 
interest rate computed at initial recognition of these financial assets 
receivables with a short duration are not discounted 
1  	 a c c o u n ti n g 	 p o l i ci es 	continued
 iii  	 br and s 	 and 	 c u s t omer 	 rel at ion s hip s
brands and contractual customer relationships acquired in a business 
combination are recognised at fair value at the acquisition date 
both intangibles have a finite useful life and are carried at cost less 
accumulated amortisation 
 i v  	 a mor t i s at ion
amortisation is charged to the consolidated income statement on 
a straightline basis over the estimated useful economic life of each 
type of intangible asset as follows
computer software 310 years
brands 1520 years
order book at date of acquisition over the period until travel occurs
customer relationships over the period during which value will  
be obtained by the group up to 15 years
licences over the term of licence
software in development is not amortised upon completion of 
development and bringing the software into use the costs are 
recategorised into computer software and amortisation commences
p 	 p r oper t y  	 plant 	 and 	 equipment
 i  	 o wne d 	 a s s e t s
items of property plant and equipment are stated at cost less 
accumulated depreciation and impairment losses cost includes the 
original purchase price of the asset and the costs attributable to bringing 
the asset to its working condition for its intended usewhere significant 
parts of an item of property plant and equipment have different useful 
lives they are accounted for as separate items of property plant and 
equipment fair value adjustments are made in respect of property 
plant and equipment acquired as part of a business combination but 
are not subsequently remeasured to fair value
 ii  	 l e a s e d 	 a s s e t s
leases in which the group assumes substantially all the risks and 
rewards of ownership are classified as finance leases leased assets 
acquired by way of a finance lease are stated at an amount equal to the 
lower of their fair value and the present value of the minimum lease 
payments at the inception of the lease less accumulated depreciation 
and impairment losses lease payments are accounted for as set out in 
note 1hii above
 iii  	 de p re c i at ion
depreciation is charged to the consolidated income statement on 
a straightline basis over the estimated useful economic lives of each 
part of an item of property plant and equipment freehold land is 
not depreciated the useful economic lives are as follows
freehold properties up to 50 years
short leasehold improvements lease period or useful 
economic life if shorter
owned aircraft up to 18 years
finance leased aircraft and equipment lease period or useful 
economic life if shorter
aircraft spares 12 years
cruise ships 40 years
yachts 515 years
motor boats 1524 years
computer equipment including  
retail computer equipment
35 years
retail fixtures and fittings up to 10 years
other assets up to 7 years tui travel p l c annu al repo rt  accounts 2014 123
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
r  	i n v entories
inventories are measured at the lower of cost or net realisable value 
net realisable value is the estimated selling price less the estimated 
costs incurred until the sale and the estimated variable costs required 
to sell all inventories are written down individually where the net 
realisable value of inventories is lower than their carrying amounts 
the measurement method applied to similar inventory items is the 
weighted average cost formula spare parts and servicing equipment 
are classified as property plant and equipment rather than inventory 
when they meet the definition of property plant and equipment which 
includes the expectation that they will be used for more than one 
financial year
s 	 p r o visi ons
a provision is recognised in the consolidated balance sheet when the 
group has a legal or constructive obligation as a result of a past event 
it is probable that an outflow of economic benefits will be required 
to settle the obligation and the outflow of economic benefits can be 
reliably estimated if the effect is material provisions are determined 
by discounting the expected future cash flows at a pretax rate that 
reflects current market assessments of the time value of money and 
the risks specific to the liability
 i  	 m ain t en anc e 	 p rov i s ion 	 for 	 le a s e d 	 airc r af t
to reflect the legal obligations placed upon the group under the terms 
of certain operating leases provision is made for the maintenance 
overhaul and repair costs of operating leased airframes engines 
and certain other components the provision is based on the present 
value of the anticipated external costs of the next maintenance 
event calculated by reference to costs experienced and published 
manufacturers’ data the charge to the consolidated 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 unwinding of discounted values is 
charged to the consolidated income statement as a financial expense
 ii  	 re s t r uc t uring 	 p rov i s ion
a provision for restructuring is recognised when the group has approved 
a detailed and formal restructuring plan and the restructuring either 
has commenced or has been announced publicly future operating costs 
are not provided for
 iii  	 o nerou s 	 con t r ac t s
a provision for onerous contracts is recognised when the expected 
benefits to be derived by the group from the contract are lower than 
the unavoidable cost of meeting its obligations under the contract  
the provision is measured at the present value of the lower of the 
expected cost of terminating the contract and the expected net cost  
of continuing with the contract before a provision is established the 
group recognises any impairment loss on the assets associated with 
that contract 
significant financial assets are tested for impairment on an individual 
basis the remaining financial assets are assessed collectively in groups 
that share similar credit risk characteristics
all impairment losses are recognised in profit or loss impairments 
of loans to joint ventures and associates including losses recognised 
when the group has incurred legal or constructive obligations or made 
payments on behalf of a joint venture or associate are recognised 
within the share of the result of joint ventures and associates and 
included within operating profit any cumulative loss in respect of 
an available for sale financial asset previously recognised in equity is 
recycled to profit or loss an impairment loss is reversed if the reversal 
can be related objectively to an event occurring after the impairment 
loss can be recognised
for financial assets measured at amortised cost and available for sale 
financial assets that are debt securities the reversal is recognised in 
profit or loss for available for sale financial assets that are equity 
securities the reversal is recognised in other comprehensive income
 ii  	n on  fi n anc i al 	 a s s e t s
the carrying amount of the group’s nonfinancial assets other than 
inventory and deferred tax assets are reviewed at each balance sheet 
date to determine whether there is any indication of impairment 
if such an indication exists the asset’s recoverable amount is estimated 
for goodwill the recoverable amount is estimated at each balance 
sheet date
an impairment loss is recognised whenever the carrying amount of 
an asset or its cgu exceeds its recoverable amount the recoverable 
amount of an asset or cgu is the greater of its value in use and fair 
value less costs to sell in assessing value in use the estimated future 
cash flows are discounted to their present value using a pretax 
discount rate that reflects current market assessments of the time 
value of money and the risks specific to the asset 
a cgu is the smallest identifiable group of assets that generates cash 
inflows that are largely independent of the cash inflows from other 
assets or groups of assets the largest unit to which goodwill is 
allocated is an operating segment level as defined in ifrs 8 before 
applying aggregation criteria note 3 contains further details of the 
group’s operating segments
impairment losses are recognised in profit or loss impairment losses 
recognised in respect of cgus are allocated first to reduce the carrying 
amount of goodwill allocated to the cgu and then to reduce the 
carrying amount of other assets in the unit on a prorata basis an 
impairment loss in respect of goodwill is not reversed in respect of other 
assets impairment losses recognised in prior periods are assessed at 
each reporting date for any indications that the loss has decreased or 
no longer exists an impairment loss is reversed if there has been a 
change in the estimates used to determine the recoverable amount 
an impairment loss is reversed only to the extent that the asset’s 
carrying amount does not exceed the carrying amount that would have 
been determined net of depreciation or amortisation if no impairment 
loss had been recognised 124 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
brands are calculated by reference to the royalty rate that could be 
supported by the individual business unit profit margin weighted for 
the strength of the brand acquired appropriate tax and discount rates 
are also applied to the valuation customer relationships are valued 
using the excess earnings methodology which calculates the present 
value of the earnings the asset generates net of a reasonable return 
on other assets also contributing to that stream of earnings inputs to 
the excess earnings methodology include applicable forecast sales to 
which the customer relationship contribute the deduction of returns 
on all other assets and appropriate discount and tax rates
 ii  	i nve s t men t s 	 in 	 e qui t y 	 and 	 de b t 	 s ec uri t ie s
the fair value of financial assets at fair value through profit or loss and 
available for sale financial assets is determined by reference to their 
quoted closing bid price at the reporting date where available if there 
is no market price available the fair value is calculated based on other 
valuation techniques including assessments of future cash flows 
estimated selling price and other available information the fair value 
of held to maturity investments is determined on initial recognition 
and thereafter for disclosure purposes only
 iii  	t r ade 	 and 	 o t her 	 rec ei v ab le s
trade receivables are recognised at their fair value and subsequently 
recorded at amortised cost using the effective interest method 
as reduced by allowances for estimated irrecoverable amounts 
an allowance for irrecoverable amounts is established when there is 
objective evidence that the group will not be able to collect all amounts 
due according to the original terms of the receivables the amount of 
allowance is the difference between the asset’s carrying amount and 
the present value of estimated future cash flows
 i v  	t r ade 	 p a y ab le s
trade payables are recognised at their fair value and subsequently 
recorded at amortised cost using the effective interest method
 v  	 deri v at i ve s
the fair value of foreign currency contracts fuel forward contracts and 
option contracts is their forward market price at the balance sheet date 
based on external valuations or internal valuations using market data 
 v i  	n on  deri v at i ve 	 fi n anc i al 	 li abili t ie s
fair value which is determined for disclosure purposes is calculated 
based on the present value of future principal and interest cash flows 
discounted at the market rate of interest at the reporting date for 
finance leases the market rate of interest is determined by reference 
to similar lease agreements
 v ii 	 sh are  b as e d 	 pa y men t s
the fair value of the shares awarded is measured using option 
valuation models taking into account the terms and conditions upon 
which the awards were made the valuation basis is identical whether 
the awards will be settled in cash or shares
 v iii  	c a s h 	 and 	 c a s h 	 e qui v alen t s 	 and 	 b ank 	 lo an s 	 and 	 overdr af t s
the fair value disclosed for cash and cash equivalents and bank loans 
and overdrafts approximates to the carrying amount
1  	 a c c o u n ti n g 	 p o l i ci es 	continued 	
 t  	 r elated 	 par ties
for the purpose of these consolidated financial statements parties 
are considered to be related to the group if the group 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 group and the party are subject to common control or 
significant influence related parties may be individuals or entities
u 	 segment 	 r epor tin g
an operating segment is a component of an entity that
• engages in business activities from which it may earn revenues 
and incur expenses including revenues and expenses relating 
to transactions with other components of the same entity
• whose operating results and financial position are regularly 
reviewed by the chief operating decision maker to make decisions 
about resources to be allocated to the segment and assess its 
performance and
• for which discrete financial information is available
as described in note 3 all underlying operating items are allocated 
to the segment’s underlying profit except central costs and net 
financial expenses
 v  	 use 	 of 	 estimates 	 and 	 judgement s
the preparation of financial statements requires management to make 
judgements estimates and assumptions that affect the application 
of accounting policies and the reported amounts of assets liabilities 
income and expenses actual results may differ from these estimates
estimates and underlying assumptions are reviewed on an ongoing basis 
revisions to accounting estimates are recognised in the period in which 
the estimates are revised and in any future periods affected details of 
critical judgements significant estimates and assumptions are disclosed 
in the relevant notes to the consolidated financial statements the key 
accounting estimates and judgements are described in note 2
 w  	 determinati on 	 of 	 fa ir 	 values
a number of the group’s accounting policies and disclosures require the 
determination of fair value for both financial and nonfinancial assets 
and liabilities fair values have been determined for measurement and
or disclosure purposes based on the following methods when applicable 
further information about the assumptions made in determining fair 
values is disclosed in the note specific to that asset or liability
 i  	i nt ang ible 	 a s s e t s
the fair value of intangible assets recognised as a result of a business 
combination including brands customer relationships and the customer 
order book at the date of acquisition is valued by reference to income
based methods for all intangible assets current use is determined 
to be the highest and best use of that asset incomebased methods 
estimate the future economic benefits to be derived from ownership 
of the asset by identifying quantifying and separating cash flows 
attributable to the asset and capitalising their present value tui travel p l c annu al repo rt  accounts 2014 125
 
strategic report
 
business and financial review
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
the following standards revisions and amendments to current standards 
have been issued and unless stated are considered applicable to the 
group in future years they have not been voluntarily adopted early by 
the group 
effective date accounting 
periods commencing on or after
n o t 	 ye t 	 e n d or s e d 	 by 	 t he 	e u
amendment to ias 19 regarding defined benefit 
plans 1 july 2014
annual improvements 2012 1 july 2014
annual improvements 2013 1 july 2014
annual improvements 2014 1 july 2016
amendment to ifrs 11 ‘joint arrangements’ on 
acquisition of an interest in a joint operation 1 january 2016
amendment to ias 16 ‘property plant and 
equipment’ and ias 38 ‘intangible assets’ on 
depreciation and amortisation 1 january 2016
ifrs 14 ‘regulatory deferral accounts’ 1 january 2016
ifrs 15 ‘revenue from contracts with 
customers’ 1 january 2017
ifrs 9 ‘financial instruments’ including 
amendments to ifrs 9 on hedge accounting 1 january 2018
the group continues to monitor the potential impact of these and 
other new standards and interpretations which may be endorsed 
by the european union and require adoption by the group in future 
accounting periods
2 	 k e y 	 ac c o u n ti n g 	 esti ma t es 	 a n d 	 j u d g e m e n ts
the preparation of consolidated financial statements under adopted 
ifrs 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 they believe to 
be reasonable under the circumstances actual results may differ from 
estimates the audit committee has reviewed management’s selection 
development 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 	 e stimates
i n t ang ib le 	 a s s e t s 	 – 	 g ood w ill 	 c arr y ing 	 v alue
a full impairment review has been performed of all goodwill together 
with intangible assets and property plant and equipment held across 
the group on a cgu basis in the current year the impairment review 
has been performed on a ‘value in use’ basis for all cgus which requires 
estimation of future net operating cash flows the time period over which 
they will occur and appropriate discount and growth rates 
significant estimates for revenues and costs are required in building 
financial budgets extending over a five year period which are based 
upon internal and macroeconomic factors such as the group’s strategy 
for each cgu the brand strength within that cgu consumer demand 
supplier cost increases oil prices and the penetration of differentiated 
holidays all inputs into the group’s longterm plans are challenged 
and considered by the board until achievable and realistic budgets 
are approved 
 x  	n ew 	 standards 	 and 	 interpr et ati ons 	 not 	 y et 	 a dopted
the following standards are applicable to the group and will be applied 
to the accounting period beginning on 1 october 2014
• ifrs 10 ‘consolidated financial statements’ this new standard 
replaces all guidance on control and consolidation currently within 
ias 27 and sic 12 and builds on existing principles by identifying the 
concept of control as the determining factor in whether an entity 
should be included within the consolidated financial statements 
the adoption of this new standard including the amendment to 
ifrs 10 on transition guidance is not expected to have a material 
impact on the group’s profit before tax 
• ifrs 11 ’joint arrangements’ this new standard establishes 
principles for financial reporting by parties to a joint arrangement 
the ifrs supersedes ias 31 and sic13 and is concerned principally 
with the structure of the arrangement proportional consolidation  
of joint ventures is no longer allowed but this itself will not impact 
the group as all of the group’s joint ventures are currently equity 
accounted the adoption of this new standard including the 
amendment to ifrs 11 on transition guidance is not expected  
to have a material impact on the group’s profit before tax 
• ifrs 12 ‘disclosure of interests in other entities’ this new standard 
sets out the required disclosures for entities reporting under the 
two new standards ifrs 10 ‘consolidated financial statements’  
and ifrs 11 ‘joint arrangements’ and replaces the disclosure 
requirements currently found in ias 28 ‘investments in associates’ 
the ifrs requires an entity to disclose information that enables 
users of financial statements to evaluate both the nature of and 
risks associated with its interests in other entities and the effects  
of those interests on its financial position financial performance  
and cash flows the adoption of this new standard including the 
amendment to ifrs 12 on transition guidance is not expected to 
have an impact on the group’s results but will amend certain 
disclosures in relation to joint ventures and associates 
• ias 27 revised 2011 ‘separate financial statements’ this revision 
includes the provisions on separate financial statements that are left 
after the control provisions of ias 27 have been included in the new 
ifrs 10 
• ias 28 revised 2011 ‘investments in associates and joint ventures’ 
this revision includes the requirements for joint ventures as well as 
associates to be equity accounted following the issue of ifrs 11 
• amendments to ias 32 on offsetting financial assets and liabilities 
this amendment updates the application guidance in ias 32 to 
clarify some of the requirements for offsetting financial assets and 
liabilities on the balance sheet 
• ifric 21 ‘levies’ this interpretation is in respect of ias 37 
‘provisions contingent liabilities and contingent assets’ clarifying 
that the obligating event that gives rise to a liability is the activity 
described in the relevant legislation that triggers the payment of the 
levy management are currently assessing the impact of adopting 
this pronouncement 126 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
 b  	 ju d ge me n t s
e n t r y 	 in t o 	 s er v ic e 	 o f 	 new 	 airc r af t 	 and 	 re l at e d 	 accoun t ing	
this financial year saw the group incur further costs to enable a new 
type of aircraft the boeing 787 dreamliner to continue to be brought 
into service as part of the funding of these costs the group is entitled 
to certain credits from boeing which in some cases are taken directly to 
the income statement and in others are used to offset against the cost 
of each aircraft these are therefore reported as sale and leaseback 
profits in the income statement when the aircraft is delivered and the 
sale and leaseback transaction is executed significant judgement is 
involved in the accounting treatment of these credits both in terms 
of recognition and classification in the income statement since entry 
into service costs will continue to be incurred in the next financial year 
as further boeing 787 deliveries occur and more aircraft are brought 
into service 
s e p ar at e l y 	 di s c lo s e d 	 i t em s
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 note 4
i mp airmen t 	 o f 	 fi n anc i al 	 a s s e t s
in light of the ongoing challenging trading conditions in the russian and 
ukrainian source markets together with the need for continued financial 
support from the group the directors have considered the recoverability 
of term loans totalling £28m made to its joint venture that were made 
in previous years the current year and after the year end 
r ev e n u e 	 re c og n i t io n
in recognising revenue judgement is required in the consideration 
of whether each individual business acts as a principal or agent and 
whether revenues should be recognised on a gross or net basis in 
accordance with ias 18 judgement is required when considering 
the balance of risk and rewards of the sale including delivery and 
nonperformance risk credit risk inventory risk and the ability to 
establish prices 
l i ab i l i t ie s
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 
legal including denied boarding compensation and onerous lease 
provisions it is also required to determine the provision methodology 
and for certain provisions considering external information on which to 
base the amount of provision 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 provisions have been calculated are disclosed in note 22 and the 
accounting policy is set out in note 1s
2 	 k e y 	 ac c o u n ti n g 	 esti ma t es 	 a n d 	 j u d g e m e n ts continued
for the purpose of the group’s impairment testing we have then 
considered the key inputs that can impact discounted cash flows the 
most these being in relation to the discount rate and earnings growth 
both within the longterm plans and thereafter this year we have 
also used external advisers to assist in the calculation of the weighted 
average cost of capital using more robust longterm data to reduce the 
impact of shortterm stock market volatility further details including 
sensitivity analysis are given in note 10 and the accounting policy is 
set out in note 1qii
de fi ne d 	 bene fi t 	 pen s ion 	 pl an s
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 short term 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 6c
during the final quarter of the year agreement was reached with the 
trustees of our three main uk defined benefit pension schemes to 
give members not yet drawing their pension the option to exchange 
nonstatutory future increases in their pension for a higher initial 
pension at retirement with only limited statutory increases to be 
applied thereafter a oneoff reduction in pension liabilities of £28m has 
been recognised in respect of this with the key estimated assumption 
in this calculation being the expected level of take up of the option on 
retirement to be 40 of those members offered this key assumption 
of 40 has been made based on the experience of the exercise 
undertaken during the first half of the financial year which was with 
current as opposed to future pensioner members considerations 
specific to the nonpensioner population and evidence from other 
similar exercises if the assumption had been set at 5 lower or higher 
than 40 both of which are reasonably possible changes to this 
assumption the oneoff credit in respect of the reduction in pension 
liabilities would have been £35m lowerhigher
der iv at i ve 	 fi n anc i al 	 in s t r ument s
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 26k tui travel p l c annu al repo rt  accounts 2014 127
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
t a x at ion
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 items relating to open 
areas often require significant judgement including the probability 
timing and size of any amounts that may become payable judgements 
in respect of significant tax liabilities are given in note 8 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
r ecover able 	 amount s 	 o f 	 depo s it s 	 and 	 prep a yment s
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 judgement can often be based upon an understanding 
of the financial strength of those hoteliers and the quality of and 
demand for each hotel over the coming seasons
f air 	 v alue 	 me a s urement s
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 26h 
3  	 se gm e n ta l 	 i n f o r ma ti o n
ifrs 8 requires segmental information to be presented on the same 
basis as that used for internal management reporting segmental 
information is reported by the group’s business sectors to the group 
management board gmb the gmb consists of tour operating and 
functional experts drawn from across the group who execute tui 
travel’s daytoday operations allocate resources to and assess the 
performance of the operating segments consequently the gmb is 
considered to be the chief operating decision maker for the purposes 
of ifrs 8
gr o up 	 struc tur e
the group presents segmental information in respect of its sectors 
the businesses within our mainstream sector are reported via each 
key source market instead of regionally emerging markets remains 
outside of the mainstream sector for internal management reporting 
purposes and is reported separately 
the mainstream sector consists of the following source markets 
uk  ireland germany france the french scheduled airline 
the nordic countries canada belgium  morocco the netherlands 
austria switzerland poland southern europe and the hotels division 
comprising hotel management companies and joint ventures in 
hotel assets 
each source market represents an individual operating segment 
aggregation criteria is used to combine certain of these operating 
segments into reported segments
the specialist  activity sector operates under five divisions 
adventure education north american specialist events and specialist 
holidays group the sector has over 100 international specialist and 
activity brands delivering a range of unique customer experiences 
the specialist  activity sector is considered to be one operating 
segment in line with internal management reporting
the accommodation  destinations ad sector provides a range 
of services in destinations to tour operators travel agents corporate 
clients and direct to the consumer worldwide ad consists of 
online accommodation comprising accommodation wholesaler and 
accommodation ota and inbound services the ad sector in 
total is considered as one operating segment in line with internal 
management reporting 
the emerging markets sector is a growing portfolio of travel businesses 
in the source markets of russia ukraine india and china and is 
considered to be one operating segment
r epor table 	 and 	 r epor ted 	 segment s
the results of the uk  ireland germany nordics and the french tour 
operator are reported separately due to the size and importance of 
these source markets and meeting the threshold for being individual 
reportable segments the results for the french scheduled airline 
corsair are shown separately to that of the french tour operator as it 
has a different business model to the rest of the group’s integrated tour 
operators all of the other mainstream source markets except for the 
hotels division meet the aggregation criteria set out in ifrs 8 and are 
reported as one segment the rest of mainstream all of the aggregated 
businesses are considered to be similar in nature and economically 
similar over the long term the hotels division is reported separately 
as this does not meet the aggregation criteria of ifrs 8 
emerging markets the specialist  activity and ad sectors are all 
reported as separate sector totals as this is consistent with internal 
management reports
all reportable segments derive their revenues from the sale of leisure 
travel and ancillary services segmental information for both the current 
and prior year has been presented using this structure corporate costs 
are in respect of central costs including finance human resources legal 
facility costs and some information technology costs that do not relate 
to each business segment and hence are not allocated
information regarding the results of each reportable segment is provided 
below segmental performance is evaluated based on underlying 
operating profit and is measured consistently with underlying operating 
profit or loss in the consolidated financial statements and as defined in 
note 1bii intersegmental sales and transfers reflect arm’s length 
prices as if sold or transferred to third parties financial income and 
expenses are not allocated to the reportable segments as this activity is 
managed by the group’s treasury function which manages the overall 
net cashdebt position of the group no one customer exceeds 10 of 
external entity revenues in any segment goodwill impairment losses 
arising are detailed in note 10 and are recognised in the consolidated 
income statement 
segment assets comprise capital expenditure as this is the only measure 
of assets reported monthly to the gmb and represent the amounts 
purchased in the year 128 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
3  	 se gm e n ta l 	 i n f o r ma ti o n 	continued
segm e n t al 	 anal ysis	
y e ar 	 ende d 	 30 	 s ep t ember 	 20 1 4
sector
t o t a l 	 r e v e n u e 	
£m
i n t e r s e g me n t a l 	
r e ve nue	
£m
t ot a l 	 e x te r n a l 	
r e ve nue	
£m
u n d e r l y i n g 	
op e r at in g	
pr o fi t  l o s s  	
£m
uk  ireland 4024 97 3927 271
germany 3981 30 3951 113
nordics 1119 11 1108 47
french tour operator 566 1 565 29
french airline 392 12 380 7
hotels 247 204 43 4
rest of mainstream 2540 107 2433 147
t o t al 	 m ain s t re am 12869 462 12407 546
specialist  activity 1331 2 1329 38
accommodation  destinations 1054 182 872 80
emerging markets 11 – 11 18
all other segments and unallocated items – – – 34
t o t al 	 g rou p 15265 646 14619 612
y e ar 	 ende d 	 30 	 s ep t ember 	 20 1 3
sector
total revenue
£m
intersegmental 
revenue
£m
total external 
revenue
£m
underlying 
operating 
profitloss
£m
uk  ireland 4007 128 3879 251
germany 4187 26 4161 113
nordics 1223 – 1223 79
french tour operator 706 – 706 59
french airline 408 37 371 1
hotels 214 160 54 6
rest of mainstream 2564 90 2474 125
t o t al 	 m ain s t re am 13309 441 12868 514
specialist  activity 1437 4 1433 41
accommodation  destinations 960 210 750 78
emerging markets – – – 12
all other segments and unallocated items – – – 32
t o t al 	 g rou p 15706 655 15051 589
r econciliati on 	 of 	 gr oup 	 underlyin g 	 operatin g 	 pr ofit 	 to 	 pr ofit 	 befor e 	 tax
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013
restated
£m
g roup 	 u n d e r l y ing 	 op e r at ing 	 p ro fi t 612 589
separately disclosed items 4 1 24
acquisition related expenses 13a 67 65
impairment of goodwill 10 – 188
impairment of financial assets 12 29 –
taxation on lossesprofits and interest of joint ventures and associates 12 18 15
o p e r at ing 	 p ro fi t 	 499 297
net financial expenses 5 137 128
pro fi t 	 b e fore 	 t a x 362 169
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1 129 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
o t h e r 	 se gme n t a l 	 in f o r mati o n
capital expenditure
total depreciation of property  
plant and equipment and 
amortisation of intangible assets
sector
2014
£m
2013 
£m
2014	
£m
2013
£m
uk  ireland 254 244 78 83
germany 59 50 20 18
nordics 8 17 6 5
french tour operator 5 6 7 10
french airline 12 74 27 24
hotels 18 9 14 15
rest of mainstream 102 80 23 22
t o t al 	 m ain s t re am 458 480 175 177
specialist  activity 27 34 36 35
accommodation  destinations 35 40 38 33
all other segments and unallocated items – 8 1 3
t o t al 	 g rou p 520 562 250 248
total capital expenditure of £520m 2013 £562m comprises £107m 2013 £102m of additions to intangible assets as shown in note 10 and £413m 
2013 £460m of additions to property plant and equipment as shown in note 11
total depreciation of property plant and equipment and amortisation of intangible assets of £250m 2013 £248m comprises £102m 2013 £91m 
of amortisation of intangible assets as shown in note 10 and £148m 2013 £157m of depreciation of property plant and equipment as shown in 
note 11 
e n ti t y w id e 	 d iscl o sur es
the uk is the group’s country of domicile revenues from external customers and noncurrent assets are split geographically as follows
uk germany nordics other europe rest of the world total
2014 	
£m
2013 
£m
2014 	
£m
2013 
£m
2014	
£m
2013 
£m
2014	
£m
2013 
£m
2014	
£m
2013 
£m
2014	
£m
2013 
£m
revenue from  
external customers 4652 4700 3952 4161 1135 1101 3992 4253 888 836 14619 15051
noncurrent assets 2959 2833 552 608 108 312 1219 1138 728 731 5566 5622
revenue classification is based on the source of the supply in addition to the united kingdom revenue relating to an individual country is separately 
disclosed when it represents broadly 10 or more of total revenue other europe is defined as continental europe and eire excluding uk and 
germany noncurrent assets for the table above excludes all noncurrent financial assets and instruments investments in joint ventures and 
associates deferred tax assets and postemployment benefit assets in accordance with ifrs 8 
4 	 se pa ra t e l y 	 d iscl o se d 	 i t e ms
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
restructuring and other separately disclosed items 30 59
aircraft and other assets 6 23
pension related credit 67 25
vat regularisation 41 –
litigation provisions 1 13
t o t al 	  c re di t   c h ar ge 1 24
separately disclosed items within operating profit are included within the consolidated income statement as follows
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
revenue – 1
cost of sales 9 4
administrative expenses 8 19
t o t al 	  c re di t   c h ar ge 1 24 130 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
4 	 se pa ra t e l y 	 d iscl o se d 	 i t e ms 	continued
r estruc turin g 	 and 	 other 	 separately 	 disclosed 	 items
the overall charge of £30m includes £37m of restructuring costs within mainstream these are primarily related to the ‘one mainstream’ initiative 
and comprise £14m in germany arising from the restructure of support functions and the airline engineering department £10m in france from 
the ongoing restructure of both the tour operator and the airline and £5m across other mainstream businesses in addition £4m of restructuring 
charges have arisen in the accommodation  destinations sector and £4m in marine there has then been £7m of credits arising from the profit 
on disposal of subsidiaries and the change in value of unhedged foreign currency derivative instruments relating to future seasons 
included in the year ended 30 september 2013 charge of £59m were mainstream restructuring costs of £29m which principally related to the 
restructuring programmes in the french tour operator and airline £18m restructuring costs incurred across the specialist  activity sector due 
to the removal of the sector management team the closure of a business in the education division further restructuring of the peak adventure 
business based in melbourne australia and rationalisation of overseas bases in the marine division and £7m of restructuring costs across the 
accommodation  destinations sector due to several programmes aimed at rationalising the business structure and moving to a number of 
regional shared service centres in europe asia and the americas 
air craf t 	 and 	 other 	 asset s
during the year ended 30 september 2014 a total credit of £6m has been recognised which arises from various aircraft transactions £5m of this 
arose from sale and lease back transactions through taking delivery from boeing of nine aircraft in the year net of entry into service costs being 
incurred as additional boeing 787 dreamliners are brought into service the comparative credit for various aircraft transactions for the year ended 
30 september 2013 was £18m there was also a credit of £1m 2013 £5m credit recognised in the year on finalising the disposal of the majority 
of our interests in the airline group limited the transaction completing in march 2014 
p ensi on 	 r elated 	 cr edit	
the £67m noncash credit recognised in the year ended 30 september 2014 arose mainly from two uk pension transactions which generated 
a total credit of £61m during the first half of the year the current pensioner members of the three main uk defined benefit pension schemes 
were given the option to exchange nonstatutory future increases in their pension for a higher pension now with only limited statutory increases 
to be applied in future years the level of acceptances reduced the present value of future pension liabilities and the resulting credit has been 
taken to the consolidated income statement under ias 19 revised as it represents a change in plan benefits net of adviser costs the credit to 
the consolidated income statement arising from this transaction was £33m 
in the fourth quarter agreement was also reached with the trustees of these three pension schemes to make the same option available to the 
members not yet drawing their pension and such members were notified in september an assumption with respect to the expected level of take up 
of the option on retirement has been made based on the experience with current pensioner members considerations specific to the nonpensioner 
population and evidence from other similar exercises and applying this assumption has resulted in a oneoff reduction in pension liabilities of 
£28m this credit has also been taken to the consolidated income statement under ias 19 revised as it represents a change in plan benefits
in addition to the uk transactions in norway management agreed with the employees to close the defined benefit pension scheme and move the 
members into a defined contribution scheme this change has been classified as a settlement gain on scheme closure under ias 19 revised and the 
resultant reduction in accrued pension liabilities of £4m has been recognised in the consolidated income statement in the period in which it occurred
during the year ended 30 september 2013 the management and works council of tui nederland nv agreed to close their defined benefit pension 
scheme and replace it with a defined contribution scheme this change was also classified as a past service gain under ias 19 revised and the 
resultant reduction in accrued pension liabilities of £14m was recognised in the consolidated income statement in the period in which it occurred 
the management of tui nederland nv and the pension scheme trustees also agreed to transfer the existing pension fund assets and liabilities to 
aegon a multinational life insurance pensions and asset management company headquartered in the netherlands this transfer of the pension 
assets and liabilities generated a further credit in the consolidated income statement of £11m
v a t	 r egularisati on
during the year ended 30 september 2014 advice was taken on the vat position of hotelbeds product slu registered in spain and located in the 
canary islands given the stricter interpretation of vat regulations in spain relating to businesses operating in the canary islands the external advice 
received was to regularise the vat position therefore during the year additional vat payments of £40m have been made which relate to years 
prior to the current financial year and so have been included within separately disclosed items a final payment of approximately £1m is expected 
to be made before the end of the calendar year to finalise the matter and has been accrued for accordingly late payment interest of £3m relating 
to this item has been included within financial expenses
li ti g ati o n 	 p r o v isi o ns
at the year end the group has continued to assess the likely outcome of the legal actions in which it is involved and in accordance with ias 37 has 
recognised provisions where it is more likely than not that an outflow of resources will be required to settle the obligation this year the process 
has resulted in a charge to the consolidated income statement of £1m 
in the year ended 30 september 2013 the group’s assessment of the likely outcome of the legal actions in which it was then involved resulted in 
a charge to the consolidated income statement of £13m €15m in respect of the penalties agreed with the spanish tax authorities on 11 october 
2013 under the terms of the settlement reached 131 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
5  	n et 	 fi na n ci a l 	 e x p e nses
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013
restated 
£m
f in a n c i a l 	 in c o me
bank interest receivable 15 19
f in an c i al 	 e x p e n s e s
bank interest payable on loans and overdrafts 18 23
finance charges on convertible bond 53 63
net interest on pension scheme liabilities note 6c 22 26
finance lease charges and interest on debt financed aircraft 12 12
unwinding of discount on provisions note 22 6 5
facility fees 19 13
change in the fair value of liabilities 6 –
other financial expenses 16 5
t otal 152 147
n e t 	 fi n an c i al 	 e x p e n s e s 137 128
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
6 	e m p l o y e es
 a  	 a v era ge 	 number 	 of 	 emplo y ees
the average monthly number of employees in the year in the group by sector including directors on service contracts and key management was 
as follows
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
n umb e r
year ended 
30 september 
2013 
number
by 	 s e c t or
mainstream 39346 38381
specialist  activity 6349 6560
accommodation  destinations 11034 10029
emerging markets 194 8
corporate 466 428
t otal 57389 55406
b  	e mplo y ee 	 cost s
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013
£m
wages and salaries 1488 1489
social security costs 238 231
pension costs defined benefit pension scheme – past service and settlement credits disclosed in separately disclosed items 67 25
pension costs defined benefit pension scheme cost 34 40
pension costs defined contribution pension scheme cost 53 50
sharebased payments note 6d 21 17
t otal 1767 1802
included within employee costs are £31m 2013 £40m of wages and salaries and £6m 2013 £4m of social security costs in relation to redundancy 
costs and a £67m credit in relation to pension transactions that are included within separately disclosed items in note 4 £21m of social security costs 
arising in the year ended 30 september 2013 have been reclassified in the comparative figures as defined contribution pension scheme costs following 
a review of pension costs throughout the group 132 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
6 	e m p l o y e es 	continued
 c  	 p ensi on 	 cost s
the group operates pension schemes for employees eligible and wishing to participate in the schemes these comprise both defined contribution 
and defined benefit schemes pension obligations vary reflecting the different legal and market conditions in each country of operation defined 
contribution schemes are funded by the payment of contributions to private and staterun organisations whilst defined benefit schemes comprise 
both funded and unfunded schemes the assets of all the funded defined benefit schemes are held separately from the assets of the group
de fi ne d 	 cont r ibu t ion 	 s c heme s 	 for 	 emplo yee s 	 and 	 direc t or s 	
current contributions are recognised as an expense in the year and once paid the group has no further liability 
de fi ne d 	 bene fi t 	 pen s ion 	 s c heme s 	
the movement of defined benefit pension obligations and assets is detailed below summarised as the uk making up 85 2013 86 of the group’s 
defined benefit obligation dbo germany making up 12 2013 10 and other making up 3 2013 4 other obligations include funded 
schemes in ireland the netherlands up until the date of closure of this scheme in the year ended 30 september 2013 switzerland and norway 
up until the date of closure in the current financial year whilst the main unfunded arrangements are in austria and france almost all uk schemes 
are funded whilst german schemes are unfunded 
the three largest uk schemes are the britannia airways limited superannuation and life assurance scheme the tui pension scheme uk and 
the thomson airways pension scheme and at 30 september 2014 they account for 996 2013 996 of the uk’s dbo these funded schemes 
are closed to new members with the level of retirement benefit generally based on capped pensionable salary at retirement and length of service
the principal unfunded schemes in germany are shown below these were all subject to a full actuarial valuation within three months preceding 
the balance sheet date
scheme name status
versorgungsordnung’ hapaglloyd fluggesellschaft gmbh open to new members
versorgungsordnung’ tui deutschland gmbh closed to new members
versorgungsordnung’ tui leisure travel gmbh closed to new members
unless otherwise stated the information included within sections i – vii of this note below relates to the group’s uk dbo 
 i  	 role 	 o f 	t r u s t ee s	
the uk schemes are funded with the assets held in separate trustee administered funds the trustees comprise representatives appointed by 
both the employer and scheme members and include independent trustees the trustees are required by law to act in the interest of all relevant 
beneficiaries and are responsible in particular for the asset investment policy plus the daytoday administration of the benefits they are also 
responsible for jointly agreeing with the employer the level of contributions 
 ii  	 f u n ding 	 re q uir e me n t s	
valuations of the schemes are made by qualified actuaries using marketbased valuations for assets and the projected unit method for liabilities 
uk legislation requires that pension schemes are funded prudently ie to a level in excess of the current expected cost of providing benefits 
within 15 months following each valuation date the trustees and the group must agree the contributions required if any to ensure that the 
schemes are fully funded over time on a suitably prudent measure contributions agreed in this manner constitute a minimum funding requirement
as part of the funding of the uk schemes the group has established a pension funding partnership arrangement pfp including tui travel amber 
scot lp slp and tui travel amber ew llp llp together the partnerships the main operating brands of the uk business namely thomson 
and first choice were transferred to the llp and the three largest pension schemes subscribed for interests in the llp via the slp tui uk limited 
pays a royalty to the llp for the use of the brands the britannia airways limited superannuation and life assurance scheme the tui pension 
scheme uk and the thomson airways pension scheme in aggregate are entitled to an annual income distribution of approximately £17m the pfp 
has a life of 15 years from inception in 2011 after which the schemes will receive a payment equal to their outstanding funding deficit up to a 
maximum of £275m in aggregate in return for their interest in the pfp
the partnerships are controlled by the group and their results are consolidated by the group there is no net impact on the consolidated balance 
sheet equity the ias 19 revised deficit or the consolidated income statement the investment held by the pension schemes does not meet the 
definition of a scheme asset under ias 19 revised and is therefore not included within the fair value of scheme assets disclosed in the consolidated 
financial statements the recognition of the brand assets in the consolidated financial statements remains unaffected by the establishment of the 
pfp although the thomson and first choice brands the latter of which is recognised on the consolidated balance sheet are now being held as 
security for the pfp see note 10 for further information  133 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
valuations for the britannia airways limited superannuation and life assurance scheme the tui pension scheme uk and the thomson airways 
pension scheme are currently held every two years and the latest valuations were undertaken as at 31 march 2012 by independent actuaries 
appointed by the trustees agreement on the 2012 scheme valuations and associated funding contributions was reached in september 2013 based 
upon these valuations employer contributions to the funded uk schemes are expected to be £82m 2013 £116m over the next year including £17m 
2013 £17m in respect of income distribution from the pfp details of the current funding commitments of these three uk schemes are shown in 
the table below in addition to this funding there is a performance related payment based on the higher of annual growth in declared dividend 
payments or annual growth in underlying earnings before interest tax and amortisation measured on a constant currency basis once annual growth 
reaches 7 payment is triggered at the rate of £033m per 01 of growth above 7 up to annual growth of 10 at 10 the rate increases to 
£05m per 01 subject to a cap of £85m for total deficit contributions inclusive of the pfp payment of £17m 
the pfp contributions will terminate in 2026 the current level of deficit contributions detailed below are scheduled to end in october 2021 although 
they are subject to revision by the funding valuations the performance related payment element of deficit funding is scheduled to end in 2016 
scheme name
date of last full 
actuarial valuation average group contribution rate
average employee 
contribution rate
britannia airways limited superannuation 
and life assurance scheme 31 march 2012
139 of pensionable salary plus £323m per annum deficit contribution and 
£122m pfp income 100
tui pension scheme uk 31 march 2012
115 of pensionable salary plus £133m per annum deficit contribution and 
£42m pfp income 72
thomson airways pension scheme 31 march 2012
198 of pensionable salary plus £29m per annum deficit contribution and 
£05m pfp income 142
where there is more than a single class of membership contribution rates reflect weighted average values within the scheme contribution rates 
are stated before adjustment for salary sacrifice arrangements where applicable
valuations with an effective date of 31 march 2014 are currently in progress
 iii  	 a s s u m p t ion s 	
assumptions under ias 19 revised are set using the best estimate with reference to market conditions at the valuation date the assets of each 
scheme have been taken at market value whilst liabilities in each territory have been calculated using the following principal financial and 
demographic assumptions
financial assumptions
uk
1 
per annum germany per annum other
4 
per annum
2014	

2013 

2014	

2013 

2014	

2013 

inflation rpi or local equivalent
2
33 33 03 13 08 12
pensionable salary inflation
3
27 27 25 25 18 24
discount rate 39 44 23 35 17 27
1  pension increases in payment across the uk schemes reflect either fixed increases or index linked increases subject to minimum and maximum limits applicable to each class of benefit
2 within the uk cpi inflation is assumed to be 10 below rpi 2013 10 
3 uk pensionable salary increase is capped at 25 for all employees earning over £32307
4 the assumptions for other are a weighted average
demographic assumptions
the mortality assumptions underlying the value of the accrued liabilities for each territory are set out in the tables below the mortality assumptions 
are based on relevant standard mortality tables in each territory
uk 	 li fe 	 ex pec t anc y 	  weig ht e d 	 a ver age 
2014	 	
y ears
2013  
years
m al e s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 232 231
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 246 245
fe m ale s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 256 255
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 271 270 134 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
6 	e m p l o y e es 	continued
g erm any 	 li fe 	 ex pec t anc y
2014	 	
y ears
2013  
years
m al e s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 189 188
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 216 214
fe m ale s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 230 228
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 255 254
o t her 	 li fe 	 ex pec t anc y 	  weig ht e d 	 a ver age 
2014	 	
y ears
2013  
years
m al e s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 202 207
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 217 230
fe m ale s
life expectancy in years for a pensioner retiring aged 65 on the balance sheet date 233 232
life expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 248 256
 iv  	 s e n s it ivit y 	 an aly s i s	
the sensitivity of the dbo to the key financial and demographic assumptions is illustrated below 
	 u k 	 g e r m a n y
2014	
£m
2014	
£m
f i n a nc i a l 	 a s s ump t io n s
inflation
increase in obligation due to increasing inflation by 05 50 10
decrease in obligation due to decreasing inflation by 05 42 9
pensionable salary inflation
increase in obligation due to increasing pensionable salary inflation by 05 3 12
decrease in obligation due to decreasing pensionable salary inflation by 05 3 11
discount rate
increase in obligation due to decreasing discount rate by 05 205 30
decrease in obligation due to increasing discount rate by 05 178 26
de m og r ap hic 	 a s s u m p t ion s
mortality rate
increase in obligation due to increasing all life expectancies by 1 year 63 6
the sensitivity analysis above has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the 
financial year and may not be representative of the actual change it is based on the key assumptions while holding all other assumptions constant 
the approach used in preparing the sensitivity analysis did not change compared with the previous financial year sensitivity analysis for other 
schemes has not been provided as there is no reasonably possible change to an assumption that would lead to a materially different dbo than 
currently recognised
 v  	 d ur at ion	
the weighted average duration of the group’s uk obligations is 21 years with individual uk scheme durations ranging from 14 to 22 years the 
weighted average duration of the group’s german obligations is 22 years with individual german scheme durations ranging from 22 to 25 years 
 vi  	c ompo s i t ion 	 o f 	 de fi ne d 	 bene fi t 	 oblig at ion s
the group’s uk dbo comprise 27 2013 26 in relation to active members 27 2013 27 in relation to deferred members and 46 2013 
47 in relation to pensioner members at 30 september 2014 the group’s german dbo comprise 76 2013 73 in relation to active members 
7 2013 7 in relation to deferred members and 17 2013 20 in relation to pensioner members at 30 september 2014  135 tui travel p l c annu al repo rt  accounts 2014
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
 vii  	 r i s k s
approximately 85 2013 86 of the group’s defined benefit obligations as at 30 september 2014 are concentrated in the uk and this exposes 
the group to a number of financial risks asset risk interest rate risk inflation risk and foreign exchange risk and demographic risk mortality risk
asset risk
59 2013 64 of the main uk scheme’s assets are invested in equity property and alternatives which are expected to outperform corporate 
bonds in the long term but are likely to increase the volatility of the balance sheet and risk of deficit in the short term investing in these asset classes 
also creates concentration and liquidity risk concentration risk is the risk that the performance of a single investment might negatively impact on 
the trustees‘ ability to meet their objectives liquidity risk is the risk of a shortfall in cash relative to the shortterm liabilities 
during the current financial year two of the three main uk schemes implemented liability driven investment ldi strategies the aim of these 
strategies is to invest in assets that hedge against interest rate risk and inflation risk mentioned below
the allocation of assets is reviewed by the trustees to ensure it remains appropriate given the schemes‘ longterm objectives and 
liquidity requirements
interest rate risk
all schemes are subject to interest rate risk where a decrease in corporate bond yields would increase the value placed on the dbo for accounting 
purposes resulting in an increased deficit however this is partially mitigated by investing 41 2013 36 in government bonds gilts corporate 
bonds ldi and cash
inflation rate risk
a significant proportion of the group’s dbo is indexed in line with price inflation specifically inflation in the uk retail price index and consumer 
price index subject to defined caps and collars inflation risk is considered less significant due to the use of the caps and collars such as pension 
increases not being fully linked to inflation additionally the three main uk schemes collectively hold some inflationlinked assets which provide 
a partial hedge against higher than expected increases in inflation 
foreign exchange risk
overseas schemes account for 15 2013 14 of the group‘s dbo and face similar risks compared to the uk schemes including asset risk where 
funded the group faces two types of foreign exchange risk the first is from assets within the uk scheme that are denominated in a currency 
other than sterling the second from the consolidation of the group’s overseas schemes that are in a functional currency other than sterling this 
latter risk is increased where a scheme is unfunded as foreign exchange movements on those schemes‘ dbo are not matched by a corresponding 
foreign exchange movement in related assets 
mortality risk
the majority of the schemes’ obligations are to provide benefits for the life of the member so increases in life expectancy will result in an increase 
in the liability
the group has recently taken steps to reduce exposure to inflation and mortality risks in november 2013 the group commenced a pension increase 
exchange pie exercise with pensioner members of the three main uk schemes members were given the option to exchange nonstatutory 
increases for a higher initial annual pension which increases in line with lower statutory requirements 28 of members who received this offer 
chose to accept it and this became effective from 1 april 2014 this exercise gave rise to a past service credit of £33m net of adviser costs in the 
consolidated income statement
in the fourth quarter of the year ending 30 september 2014 a second pie exchange was implemented to introduce pie as part of the normal 
retirement options for all active and deferred members this exercise gave rise to a past service credit of £28m net of adviser costs in the 
consolidated income statement further details of the calculation of this credit is given in note 2a
 viii  	 pa s t 	 s er vic e 	 co s t s 	 and 	 s e t t lement s
details of the group’s pie and the impact on the group’s consolidated financial statements for the year ended 30 september 2014 are included above
the norwegian defined benefit scheme was closed in the financial year and the scheme assets were used to buy insurance policies covering 
accumulated benefits the closure of this scheme generated a settlement gain of £4m disclosed as a separately disclosed item in the consolidated 
income statement
in the year ended 30 september 2013 the management and works council of tui nederland nv agreed to close the defined benefit pension scheme 
and transferred those pension fund assets and liabilities to aegon a multinational life insurance pensions and assetmanagement company 
headquartered in the netherlands the closure and transfer of assets and liabilities resulted in a past service credit of £14m and a settlement 
credit of £11m both disclosed as separately disclosed items in the consolidated income statement 136 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
6 	e m p l o y e es 	continued
 ix  	 k ey 	 account ing 	 re s ult s
c o n s oli d at e d 	 in c ome 	 s t at e me n t 	 di s c lo s u re s
the group recognises the results of its defined benefit pension schemes within the group’s consolidated income statement for the years ended 
30 september 2014 and 30 september 2013 for each territory as follows further details of the 2013 restated figures are disclosed in note 1 
uk germany other total
2014 	
£m
2013 
£m
restated
2014	
£m
2013 
£m
restated
2014	
£m
2013 
£m
restated
2014	
£m
2013 
£m
restated
current service cost 18 17 12 12 4 6 34 35
past service creditcost 63 – – 5 – 14 63 9
settlement gain – – – – 4 11 4 11
net interest on net defined 
benefit liability 15 19 7 6 – 1 22 26
t otal 30 36 19 23 – 18 11 41
c o n s oli d at e d 	 b al an c e 	 s h e e t
a reconciliation of the group’s net defined benefit liability analysed between the dbo and plan assets is as follows 
present value of 
defined benefit 
obligation 
£m
fair value of 
plan assets 
£m
net defined 
benefit liability 
£m
at 1 october 2012 1991 1343 648
current service cost 35 – 35
financial expenseincome restated 81 55 26
past service credit and settlement gains 127 107 20
creditcharge to the consolidated income statement restated 11 52 41
re me a s u re me n t s 	 o f 	 t he 	 n e t 	 de fi n e d 	 b e n e fi t 	 li abi li t y
return on plan assets excluding amounts in interest expense restated – 45 45
actuarial losses arising from changes in demographic assumptions 33 – 33
actuarial losses arising from changes in financial assumptions 62 – 62
actuarial gains arising from experience 39 – 39
chargecredit to other comprehensive income restated 56 45 11
employer contributions – 62 62
plan participants’ contributions 1 1 –
benefit payments 86 81 5
business combinations 16 – 16
foreign exchange 16 4 12
53 14 39
a t 	 30 	 s e p t e m b e r 	 201 3 1983 1322 661
present value of 
defined benefit 
obligation 
£m
fair value of 
plan assets 
£m
net defined 
benefit liability 
£m
at 1 october 2013 1983 1322 661
current service cost 34 – 34
financial expenseincome 81 59 22
past service credit and settlement gains 71 4 67
chargecredit to the consolidated income statement 44 55 11
re me a s u re me n t s 	 o f 	 t he 	 n e t 	 de fi n e d 	 b e n e fi t 	 li abi li t y
return on plan assets excluding amounts in interest expense – 79 79
actuarial losses arising from changes in financial assumptions 238 – 238
actuarial losses arising from experience 33 – 33
chargecredit to other comprehensive income 271 79 192
employer contributions – 117 117
plan participants’ contributions 1 1 –
benefit payments 71 65 6
foreign exchange 23 3 20
93 50 143
a t 	 30 	 s e p t e m b e r 	 201 4 2205 1506 699 137 tui travel p l c annu al repo rt  accounts 2014
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
the group’s dbo and plan assets by territory is analysed as follows
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
u k 	
£m
g e r m a ny 	
£m
o t he r	
£m
t ot al 	
£ m	
uk 
£m
germany 
£m
other 
£m
total 
£m
present value of funded obligations 1870 – 54 1924 1704 – 59 1763
fair value of plan assets 1458 – 48 1506 1272 – 50 1322
deficit of funded plans 412 – 6 418 432 – 9 441
present value of unfunded obligations 2 258 21 281 1 201 18 220
recognised liability for defined benefit obligation 414 258 27 699 433 201 27 661
analysed as
retirement benefit current liabilities – 3 1 4 – 3 – 3
retirement benefit noncurrent liabilities 414 255 26 695 433 198 27 658
t otal 414 258 27 699 433 201 27 661
x 	 a s s e t s
the fair value of the plan assets at the end of the financial year was as follows
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
q u o t e d 	
£m
u nq u oted 	
£m
t ot al 	
£ m	
quoted 
£m
unquoted 
£m
total 
£m
uk equities 67 – 67 61 – 61
overseas equities 455 – 455 442 – 442
fixed interest gilts 104 – 104 166 – 166
index linked gilts 73 – 73 94 – 94
corporate bonds 144 – 144 127 – 127
property 79 10 89 62 13 75
emerging market debt 11 28 39 7 26 33
emerging market currency – 29 29 – 27 27
diversified growth funds – 63 63 – 75 75
commodities – 17 17 – 17 17
catastrophe bonds – 41 41 – 37 37
liability driven investment 159 – 159 – – –
alternative credit 49 18 67 50 4 54
cash  cash equivalents – 114 114 – 67 67
insurance and other – 45 45 – 47 47
t o t al 	 f air 	 v al u e 	 o f 	 s c h e me 	 a s s e t s 1141 365 1506 1009 313 1322
there is no direct investment in financial instruments issued by the group or in property occupied by the group investments in passive index 
tracker funds may hold a proportionate investment in tui travel plc
d  	 shar e 	 a ward 	 schemes
the company operates three principal share award schemes which are designed to link remuneration to the future performance of the group the 
schemes are the performance share plan psp the deferred annual bonus scheme dabs and the deferred annual bonus longterm incentive 
scheme dablis all shares under these schemes involve both service and performance conditions and are awarded at nil cost to participants
the dablis scheme is described below and the other two schemes are described in the remuneration report along with the relevant vesting criteria 138 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
6 	e m p l o y e es 	continued
at 30 september 2014 the ordinary shares that were allocated outstanding and subject to performance conditions were as follows
share award scheme
n u m b e r 	 o f 	 s h a r e s
2014
number of shares
2013
date due to vest
date vested
performance share plan – 1851300 6 december 2013
3042857 3042857 7 december 2014
193243 193243 1 june 2015
1851735 1851735 6 december 2015
1281570 – 12 december 2016
deferred annual bonus scheme – 3535905 6 december 2013
5200660 5200660 7 december 2014
3497428 3604844 6 december 2015
2448328 – 12 december 2016
deferred annual bonus longterm incentive scheme – 2032726 6 december 2013
3598741 3601638 7 december 2014
2105670 2211179 6 december 2015
1843523 – 12 december 2016
total 25063755 27126087
the number of share awards at the beginning and end of the year is as follows
n u m b e r 	 o f 	 a w a r d s 	
3 0 	 s e p t em b er 	
2014
number of awards 
30 september 
2013
outstanding at the beginning of the year – excluding deferred shares 27126087 28249566
forfeited during the year 461473 3846929
exercised during the year 7295337 5076118
granted during the year 5694478 7799568
outstanding at the end of the year – excluding deferred shares 25063755 27126087
in addition to the above shares there are 2813458 20133118873 deferred shares that are outstanding and allocated but not subject to 
performance conditions in relation to the deferred annual bonus scheme these are due to vest between 7 december 2014 and 12 december 2016
in respect of the deferred annual bonus longterm incentive scheme there are an additional 4411903 2013 4465568 deferred shares that 
are outstanding and allocated but which are not subject to performance conditions these are due to vest between 7 december 2014 and 
12 december 2016
no material awards have been made to date under the group’s hmrc approved share incentive plan which is an allemployee share plan 
the fair value of services received in return for shares awarded during the year is measured by reference to the fair value of the shares awarded 
the fair value at the date the shares were awarded has been estimated using a binomial methodology for all schemes except where there is a 
marketbased performance condition attached to vesting in which case a monte carlo simulation was used the principal assumptions required 
by these methodologies were 
2014 2013
i n for m at ion 	 re l at ing 	 t o 	 f air 	 v al u e s 	 o f 	 s h are s 	 aw arde d
fair value at measurement date £165£328 £145£245
share price £377 £284
expected volatility 306 355
award life 3 	 years 3 years
expected dividends 467 494
risk free interest rate 078 042
participants are not entitled to dividends prior to vesting expected volatility is based on historic volatility adjusted for changes to future volatility 
indicated by publicly available information  139 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
e mplo yee 	 ex pen s e s 	 for 	 t he 	 ye ar
employee expenses for the current and prior year relating to sharebased schemes are
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
equitysettled 19 15
expense arising for share appreciation rights 2 2
t otal 21 17
s h are 	 apprec i at ion 	 rig ht s
certain participants other than board directors are eligible to receive their awards on a cashsettled basis the calculation of which exactly 
replicates the formal sharebased scheme 
de fer re d 	 a nnu al 	 bonu s 	 l ong  t erm 	i nc ent ive 	 s c heme
the deferred annual bonus longterm incentive scheme dablis is for participants below the gmb level and requires a 25 deferral of any 
annual performance bonus award into shares matching shares may also be awarded up to four times the deferred amount and are subject to the 
achievement of stretching performance conditions over a three year period awards of deferred and matching shares are subject to forfeiture 
conditions until the release date the earliest point at which the shares are eligible for release is at the end of three years following deferral 
for awards of matching shares made during the year no shares will vest unless the annual average of the ratio of the group’s return on invested 
capital roic to the weighted average cost of capital wacc meets or exceeds one over the three year period a hurdle of roic being at least 
equal to wacc is used to ensure that the relevant longterm incentive awards pay out only when shareholder value is being created over the 
performance periods if the roicwacc hurdle is met shares will only vest to the extent to which three further performance conditions are 
satisfied over the three year period as follows
• up to half of the matching shares will vest based on achievement of an aggregate ebita profit target for the participants’ sector over the three 
year performance period
a c h i e v e m e n t 	 o f 	 a g g r e g a t e 	e b i t a 	 t a r g e t p r o p o r t i o n 	 o f 	 a w a r d 	 t h a t 	 v e s t s
at or below 75 0
between 75 and 100 on a straightline basis between 10 and 100
at or above 100 100
• up to one quarter of the matching shares will vest based on growth in the group’s earnings per share eps in relation to the growth in the uk 
retail price index rpi as shown in the table below
a v e r a g e 	 a n n u a l 	e p s 	 g r o w t h 	 i n 	 e x c e s s 	 o f 	 r p i	 g r o w t h p r o p o r t i o n 	 o f 	 a w a r d 	 t h a t 	 v e s t s
below 4 0
between 4 and 13 on a straightline basis between 10 and 100
13 or above 100
• up to one quarter of the matching shares will vest based on the group’s ranking of total shareholder return tsr performance relative to an 
average of the tsr performance of an index of international travel and leisure companies deloitte provides the group with the tsr measurement 
as required the index is considered to be the most appropriate benchmark for comparison purposes the companies included in the index are 
1 aer lingus group 9 finnair 17 pierre  vacances
2 air berlin 10 firstgroup 18 pricelinecom
3 air franceklm 11 flight centre 19 royal caribbean cruises
4 carnival 12 hertz global holdings 20 ryanair holdings
5 club mediterranee 13 international consolidated airlines group 21 stagecoach group
6 deutsche lufthansa 14 kuoni group 22 thomas cook group
7 easyjet 15 national express group 23 wotifcom holdings
8 expedia 16 norwegian air shuttle
t u i	t r a v e l ’ s 	t s r 	 p e r f o r m a n c e p r o p o r t i o n 	 o f 	 a w a r d 	 t h a t 	 v e s t s
below index 0
between index and index 8 per annum inclusive on a straightline basis between 15 and 100
exceeding index 8 per annum 100
matching share awards lapse if the performance conditions are not met
e  	 r emunerati on 	 of 	 dir ec tors
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
emoluments 6 7
pensions and other retirement benefits 1 1
t otal 7 8
further information including longterm incentive plans is provided in the audited section of the remuneration report 140 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
7  	i n c o m e  	 e x p e nses 	 a n d 	 a u d i t o rs ’ 	 r e m u n e ra ti o n
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
i nc lu d e d 	 w i t hin 	 op e r at ing 	 p ro fi t 	 in 	 t h e 	 c on s oli d at e d 	 in c ome 	 s t at e me n t 	 for 	 t he 	 ye ar 	 are 	 t he 	 foll ow ing 	  c re di t s  
ch ar ges 
operating lease income aircraft 39 40
operating lease income land and buildings 2 2
operating lease rentals land and buildings aircraft and other equipment 584 604
depreciation of property plant and equipment 148 157
amortisation of intangible assets business combination intangibles 51 57
amortisation of intangible assets other intangibles 51 34
charge for sharebased payments 21 17
profit on disposal of property plant and equipment and intangible assets 16 10
lossprofit on foreign currency retranslation 3 19
impairment of goodwill and other intangible assets – 199
impairment of financial assets 29 –
impairment of property plant and equipment 6 3
in addition to the operating lease rentals disclosed above charges of £101m 2013 £102m were incurred in respect of hotel accommodation rentals 
which are disclosed as operating leases under ifric 4 ‘determining whether an arrangement contains a lease’ 
the group leases aircraft throughout the year and in certain circumstances subleases a number of such aircraft when it has the capacity to do 
so in order to maximise utilisation up to seven aircraft are leased to other airline companies at fixed rates in addition up to 14 aircraft are leased 
to the sunwing travel group sunwing an associate of the group the aircraft leased to sunwing are winteronly leases and are at market rates 
the expected future minimum lease income under noncancellable operating leases is as follows
m i n i m u m 	 l e a s e 	 i n c o m e 	 u n d e r 	 n o n  c a n c e l l a b l e 	 o p e r a t i n g 	 l e a s e s 	 a r i s i n g 
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
within one year 24 32
between one and five years 27 49
later than five years 16 23
total 67 104
ser vices 	 pr o vided 	 b y 	 the 	c ompan y ’ s 	 a uditors 	 and 	 it s 	 associates
during the year the group including its overseas subsidiaries obtained the following services from the company’s auditor and its associates
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
fees payable to the company‘s auditors for the audit of the parent company and consolidated financial statements 1 1
fees payable to the company‘s auditors and its associates for other services
audit of the company’s subsidiaries pursuant to legislation 5 5
auditors‘ remuneration for audit services 6 6
other services provided to comply with legislation
1
1 1
audit and audit related services 7 7
all other services 2 2
1
 relate principally to the interim review and airline regulatory returns
fees charged to the consolidated income statement in 2014 in respect of all other services totalling £2m includes £562000 for their work on a 
variety of consultancy engagements £292000 for providing advice on several it projects and £240000 of tax advice in respect of expatriates
fees charged to the consolidated income statement in 2013 in respect of all other services totalling £2m included £850000 for their work on  
the class 1 shareholder circular in respect of aircraft orders with boeing £420000 in respect of the implementation of the coso framework  
in the german businesses and £266000 of tax advice in respect of expatriates 141 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
8 	t axa ti o n
the tax charge can be summarised as follows
i 	 analysis 	 of 	 charge 	 in 	 the 	 y ear	
note
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september
2013
restated 
£m
c ur re n t 	 t a x 	 c h ar ge	
uk corporation tax on profit for the year 8 6 
nonuk tax on profitloss for the year 88 92
adjustments in respect of previous years 3 45
93 143
de f e r re d 	 t a x 	 c h ar ge   c re di t 	
origination and reversal of temporary differences
current year uk 38 6
current year nonuk 20 7
changes in tax rates 2 4
adjustments in respect of previous years 26 45
14 82 28
t o t al 	 in c ome 	 t a x 	 c h ar ge 	 in 	 c on s oli d at e d 	 in c ome 	 s t at e me n t 175 115
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
following a review of the group’s deferred tax balances in the year the directors have written off certain deferred tax assets totalling £26m where 
there is no longer sufficient certainty of the timing of any benefits that might arise in the future and which have been treated as a separately disclosed 
tax item for the purpose of calculating underlying earnings per share as disclosed in note 33 as part of this review £23m of deferred tax liabilities 
have been written back to reserves in the year principally in respect of the convertible bonds
in the year ended 30 september 2013 certain tax balances were adjusted to reflect the position of the latest local statutory accounts and tax returns 
these adjustments were reflected in the consolidated income statement in that year but due to their underlying nature were not treated as separately 
disclosed tax items for the purpose of calculating underlying earnings per share
ii 	 r econciliati on 	 of 	 ef fec tiv e 	 t ax 	 rate
the total tax charge 2013 charge for the year is higher 2013 higher than the standard rate of corporation tax in the uk of 22 2013 235 
the differences are explained below
y e a r 	 e n d e d 	
3 0 	 s e p t e m b e r 	 2 01 4
year ended 
30 september 2013 
restated
£m  £m 
profit before tax reported in the consolidated income statement 362 169
excluding share of lossesprofits in joint ventures and associates note 12 20 17
382 152
income tax on profit before tax excluding share of lossesprofit of joint ventures 
and associates at the standard rate of uk tax of 22 2013 235 84 22 36 24
expenses not deductible for tax purposes 34 9 51 34
income not taxable 5 1 10 7
tax losses not recognised as an asset 26 7 33 22
tax adjustments to deferred tax assets previously recognised 18 5 – –
utilisation of tax losses not previously recognised 6 2 7 5
higher tax rates on overseas earnings 3 1 8 5
changes in tax rates 2 1 4 3
adjustments to taxation in respect of previous years 23 6 – –
t o t al 	 in c ome 	 t a x 	 c h ar ge 	 in 	 c on s oli d at e d 	 in c ome 	 s t at e me n t 175 46 115 76
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
the underlying effective rate of taxation for the year ended 30 september 2014 is calculated based on the underlying profit before tax excluding 
separately disclosed items acquisition related expenses and impairment charges and equates to 31 the actual tax rate of 46 differs from the 
underlying effective tax rate primarily due to the separately disclosed tax item referred to in note 8i above  142 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
8 	t axa ti o n 	continued
iii 	 deferr ed 	 tax 	 r eco gnised 	 out side 	 of 	 the 	 consolidated 	 income 	 statement
the following taxation chargecredit has been recognised outside of the consolidated income statement 
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013
restated 
£m
t a x 	 re l at ing 	 t o 	 c om p on e n t s 	 o f 	 o t h e r 	 c omp re h e n s i ve 	 in c ome
cash flow hedges 17 22
defined benefit pension plans 45 14
t o t al 	 t a x 	 c re di t e d 	 t o 	 o t h e r 	 c omp re h e n s i ve 	 in c ome 28 8
t a x 	 re l at ing 	 t o 	 c om p on e n t s 	 o f 	 e qui t y
convertible bonds 23 3
share based payments 6 –
t o t al 	 t a x 	 c re di t e d 	 dire c t l y 	 t o 	 e qui t y 29 3
t otal 57 11
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
iv  	 f a c tors 	 af fec tin g 	 futur e 	 t ax 	 charge
a at the balance sheet date the finance act 2014 had been enacted confirming that the main uk corporation tax rate will reduce to 20 with effect 
from 1 april 2015 therefore at 30 september 2014 deferred tax assets and liabilities have been calculated based on a rate of 20 where the temporary 
difference is expected to reverse after 1 april 2015 these reductions may also reduce the company’s future current tax charges accordingly
b during 2012 the german tax authorities issued new guidance on how certain items of expenditure should be treated for the purposes of german 
trade tax in 2013 the german tax authorities provided some additional clarification and informed the group that in their opinion the guidance is 
applicable to tour operating activities in germany there have been no substantive administrative legislative or judicial developments on this matter 
during 2014 
the group continues to disagree with the german tax authorities‘ interpretation of this matter it is possible that this issue will have to be litigated 
through the german tax courts and it could take a considerable amount of time to bring to a resolution 
it is difficult to estimate accurately the potential liability should the german tax authorities challenge successfully the group’s interpretation of the 
guidance due to the differing nature of the contracts which could be impacted by any such challenge as a result there is a range of possible outcomes 
if the group is successful in its arguments there would be no exposure however it is possible that the liability over the last seven years 2013 six 
years could be up to a total of approximately £90m 2013 £80m although the group believes that german trade tax law should not apply to 
standard tour operating contracts and that any liability would be substantially less than this
c other factors which may affect the future tax charge include the mix of jurisdictions with different tax rates in which profits and losses arise changes 
in tax rates and the potential future recognition of tax losses for which a deferred tax asset has not been recognised at the year end note 14
 v  	 spanish 	 tax 	 case
the spanish tax case came to a conclusion in the year with the final hearing in the spanish courts occurring on 31 march 2014 in line with the 
settlement agreement reached on 11 october 2013 the interest and penalties levied of €20m were paid prior to that final hearing and the matter 
is now closed  143 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
9  	 d i v i d e n ds
the following dividends which relate to the company’s ordinary shares have been deducted from equity in the year
pe n c e	 	
p e r 	 s h a r e
y e a r 	 e n d e d 	
3 0 	 s e p t em b er 	
2014	
£m
year ended 
30 september 
2013 
£m
di v i d e n d s 	 re l at ing 	 t o 	 t h e 	 ye ar 	 e n de d 	 30 	 s e p t e mb e r 	 20 1 2
interim dividend paid october 2012 34 – 38
final dividend paid april 2013 83 – 92
117 – 130
di v i d e n d s 	 re l at ing 	 t o 	 t h e 	 ye ar 	 e n de d 	 30 	 s e p t e mb e r 	 20 1 3
interim dividend paid october 2013 375 42 –
final dividend paid april 2014 975 108 –
135 150 –
the interim dividend in respect of the year ended 30 september 2014 of 405p per share was paid on 3 october 2014 and this dividend of £46m 
will be recognised as a deduction from equity in the year ending 30 september 2015
on 15 september 2014 as part of the rule 27 announcement the directors announced that the company will immediately prior to completion 
of the merger with tui ag declare and pay a second interim dividend of 205p per share which includes a 105p dividend per share in lieu of a 
final dividend for the financial year ended 30 september 2014 this second interim dividend will be payable to those shareholders on the register 
of members of the company at the scheme record time and will be paid prior to completion of the merger conditional on the court order having 
been granted at the scheme court hearing 144 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 0 	i n ta n gi b l e 	 assets
goodwill
£m
brands
£m
customer
relationships
£m
computer
software
£m
licences
£m
software in
development
£m
other
£m
total
£m
c o s t
at 1 october 2012 4413 455 195 459 26 62 169 5779 
additions – – – 52 – 49 1 102
acquisition through business 
combinations 24 4 3 1 – – – 32
disposals – 1 2 185 1 – 6 195
foreign exchange 68 2 7 8 1 – 2 88
reclassification of asset class – – – 18 – 18 – –
at 30 september 2013 4505 460 203 353 26 93 166 5806 
additions 1 – – 45 1 60 – 107
acquisition through business 
combinations 23 8 4 – – – – 35
disposals 4 – – 12 4 6 – 26
foreign exchange 130 10 11 15 2 1 3 172
reclassification of asset class – – – 50 – 50 – –
at 30 september 2014 4395 458 196 421 21 96 163 5750
a c c u m u l at e d 	 a mo r t i s at io n 	 a n d	
im p air me n t 	 l o s s e s	
at 1 october 2012 637 135 72 341 18 4 90 1297
amortisation for the year – 25 14 42 2 – 8 91
impairment loss 188 2 – 2 – 7 – 199
disposals – 1 2 181 1 – 2 187
foreign exchange 14 1 2 4 – – 1 22
at 30 september 2013 839 162 86 208 19 11 97 1422
amortisation for the year – 25 14 54 1 – 8 102
disposals 2 – – 12 2 6 – 22
foreign exchange 30 4 5 7 2 – 3 51
reclassification of asset class – – – 1 1 – – –
at 30 september 2014 807 183 95 242 17 5 102 1451
n e t 	 b ook 	 v al u e
at 1 october 2012 3776 320 123 118 8 58 79 4482 
at 30 september 2013 3666 298 117 145 7 82 69 4384
at 30 september 2014 3588 275 101 179 4 91 61 4299
additions to computer software and software in development totalling £105m 2013 £101m include costs relating to major it development projects 
across all sectors within the group including the implementation of sap across certain mainstream source markets and the development of digital 
solution platforms for our customers
amortisation of intangible assets is recognised within cost of sales in the consolidated income statement amortisation of business combination 
and other intangibles together with depreciation of property plant and equipment is disclosed by segment in note 3 
the group has established a pension funding partnership arrangement pfp the main operating brands of the uk business namely thomson 
and first choice were sold into the pfp and three uk pension schemes subscribed for interests in the pfp the recognition of the two brand assets 
in the consolidated financial statements remains unaffected by the establishment of the pfp although the thomson and first choice brands the 
latter of which is recognised on the group balance sheet at a value of £87m 2013 £94m are now being held as security for the pfp 
individual intangible assets other than goodwill that are considered material to the group are as follows
brands customer relationships other intangible assets
2014
£m
2013
£m
2014
£m
2013
£m
2014
£m
2013
£m
first choice brand 87 94 – – – –
marmara brand 23 27 – – – –
accommodation wholesaler customer relationships – – 55 66 – –
landing slots – – – – 26 28
110 121 55 66 26 28
the first choice and marmara brands are major brands of the uk  ireland and french tour operating businesses respectively and have a remaining 
amortisation period of 13 years 2013 14 years the customer relationships within the accommodation  destinations accommodation wholesaler 
sector are in respect of commercial contractual relationships with travel agents and have a remaining amortisation period of eight years 2013 nine 
years the landing slots are in respect of the uk  ireland business for airports in the uk and have a remaining amortisation period of 13 years 
2013 14 years 145 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
go o d w i ll 	 im pa ir me n t 	 t estin g
ias 36 requires that impairment tests are carried out on cgus following the level at which the group’s management measures returns on operations 
once every year or more frequently if events or a change in the economic environment indicate a risk of impairment the group assesses the 
recoverable amount of goodwill allocated to its cgus as required by ias 36 ‘impairment of assets’ the recoverable value of goodwill for all cgus 
has been determined to be ‘value in use’ 
the calculation of recoverable value for cgus based on value in use includes the following assumptions
• cash flow projections based on the group’s latest board approved three year business plan which management has extended by two years 
to create a five year plan
• cash flows beyond the plan period are extrapolated using a real growth rate of between 10 and 355 2013 between 10 and 39 
the growth rate used is less than or equal to third party estimates of the medium term gdp growth rates of the key geographic markets in 
which the specific cgu operates at the time the projections are prepared 
• cash flows are discounted using the group’s wacc adjusted as appropriate for business specific factors such as geographic risk 
• cash flows exclude planned enhancement capital expenditure together with the associated benefit that the expenditure is expected to produce
• cash flows include the impact of working capital in both the asset base and the impact on cash flows over the five year plan period
• central group overheads are borne in full by cgus and are allocated pro rata to the cgu’s underlying operating profit 
assumptions used in the five year plan take past experience into account with cguspecific and central contingencies in the five year plan being 
allocated across all cgus 
since determination of an appropriate group wacc is judgemental sensitivities also address how increases in the base group wacc might impact 
the results of the impairment tests the group’s wacc is based on a capital asset pricing model calculation using a mixture of inhouse data and 
externally available information with input from external advisers
an analysis of the aggregate and material carrying amounts of goodwill allocated to each principal cgu including goodwill for those cgus which 
are sensitive to reasonably possible changes in key assumptions together with the growth rates being applied to cash flows beyond the five year 
plan period and the pretax discount rates used for each cgu is as follows
goodwill
growth rate applied to 
cash flows after five year plan pretax discount rate used
sector cgu
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
3 0 	 s e p t em b er	
2014

30 september 
2013

3 0 	 s e p t em b er
2014

30 september
2013

mainstream uk  ireland 1490 1490 24 245 9 10
mainstream germany 384 407 13 14 10 11
accommodation  destinations accommodation wholesaler 365 385 20 20 11 11
mainstream nordics 265 271 21 22 10 11
accommodation  destinations accommodation ota 215 239 323 343 10 10
mainstream french tour operator 125 137 18 175 9 10
specialist  activity specialist holidays group 131 112 24 245 9 10
specialist  activity adventure 101 129 273 278 9 11
specialist  activity marine 63 73 20 21 10 10
specialist  activity north american education 40 22 23 22 11 11
specialist  activity events formerly sport 29 15 273 273 10 10
all sectors multiple cgus 380 386 10355 1039 913 1014
t o t al 	 goo d w i ll 3588 3666
the multiple cgus not separately listed above do not individually represent more than 3 of total group goodwill all of the group’s goodwill has 
been allocated to each cgu and all cgus have been tested for impairment
go o d w i ll 	 im pa ir me n t 	 cha r ges
if the recoverable amount of a cgu is estimated to be less than the total of its operating noncurrent assets goodwill and other intangibles an 
impairment loss is recognised immediately in the consolidated income statement the impairment loss is allocated first to reduce the carrying 
amount of any goodwill allocated to the cgu and then to the other assets on a pro rata basis  146 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 0 	i n ta n gi b l e 	 assets 	continued
no goodwill impairment charges have arisen in the year ended 30 september 2014 since the recoverable amount for all cgus tested was at least 
equal to the carrying amount goodwill impairment charges in the comparative year ended 30 september 2013 totalling £188m equalled the difference 
between the net book values and the recoverable amounts and is analysed as follows
goodwill impairment 
charge
pretax 
discount rate longterm growth rate
sector  ifrs 8 reportable segment cgu
2013
£m
2013

2013

mainstream – france french tour operator 59 10 175
specialist  activity marine 39 10 21
specialist  activity events formerly sport 26 10 273
specialist  activity experience education 22 10 22
specialist  activity north american education 22 11 22
mainstream – southern europe italy 9 10 10
mainstream – southern europe spain 1 14 18
goodwill impairment charge arising from the annual impairment test 178
goodwill impairment charge recognised on closure of businesses 10
t o t al 	 goo d w i ll 	 im p air me n t 	 c h ar ge s 	 re c og ni s e d 	 in 	 t h e 	 p rev iou s 	 ye ar 188
all of the impairment charges arising from the group’s annual impairment test in the year ended 30 september 2013 which totalled £178m arose 
as a result of a deterioration in forecast trading results the impairment test for all of these cgus was based on the value in use calculation 
the impairment charges are disclosed within administrative expenses and shown separately on the face of the consolidated income statement 
the impairments arose since the cash flow model based on the current five year plan did not support the carrying amount of goodwill for these cgus 
sensitivit y 	 analysis 	 for 	 g oodwill
the calculation of recoverable amount is particularly sensitive to forecast future earnings the discount rate and the longterm growth rate 
the directors have considered the separate impacts of i increasing wacc by 05 ii a reduction in underlying earnings of 5 across all years 
and iii a reduction in the longterm percentage growth rate beyond the five year plan to nil as being reasonably possible changes
impairment charge arising from a reasonably possible 
change in assumption
c g u
goodwill
£m
increase in
wacc of 05
£m
reduction in 
underlying
earnings of 5
£m
reduction in
the longterm
percentage
growth rate to nil
£m
north america education 40 4 5 12
events 29 3 5 8
marine 63 – – 29
adventure 101 – – 5
accommodation ota 215 – – 75
448 7 10 129
in respect of the north american education and events cgus the recoverable amount equals the carrying amount and therefore any change to 
an assumption used in the test will cause an impairment for the marine adventure and accommodation ota cgus the recoverable value would 
equal the carrying amount if the longterm percentage growth rate reduced by 07 24 and 08 respectively additionally the recoverable 
value would equal the carrying amount if the cash flows do not increase by £6m £6m and £30m over the five year plan in the adventure events 
and accommodation ota cgus respectively
the sensitivities disclosed immediately above do not take account of any mitigating action that management would take should earnings decrease 
no other material impairments to goodwill or assets would arise following these reasonably possible changes in these key assumptions based on 
all of the calculations undertaken the directors consider that the recoverable amount of goodwill in each cgu is at least equal to its current 
carrying value 147 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
1 1  	 p r o p e r ty  	 p la n t 	 a n d 	 e q u i p m e n t
land and
buildings
£m
yachts motor
boats and
cruise ships
£m
aircraft and
equipment
£m
advance
payment
for future
delivery
of aircraft
£m
computer
equipment
£m
other
equipment
£m
total
£m
c o s t
at 1 october 2012 358 433 687 215 187 486 2366 
foreign exchange 2 – 16 2 1 6 27
acquisitions through business combinations 1 – – – 3 7 11
additions 19 28 187 140 11 75 460
disposals 71 10 156 136 120 156 649
reclassifications 3 1 45 27 2 22 –
transferred tofrom assets held for sale 6 1 31 8 – 1 15
at 30 september 2013 306 449 810 186 84 395 2230
foreign exchange 19 3 25 1 4 25 77
acquisitions through business combinations 1 – – – – 1 2
transfers to inventory – 4 – – – – 4
additions 16 19 149 169 10 50 413
disposals 6 20 40 187 8 27 288
reclassifications 30 1 8 – 10 43 6
a t 	 30 	 s e p t e m b e r 	 201 4 328 442 902 167 92 351 2282
ac c u m ul at e d 	 d e p re c i at ion 	 an d 	 imp air me n t
at 1 october 2012 187 160 437 – 163 323 1270
foreign exchange 1 2 11 – 1 5 12
provided in the year 24 24 59 – 15 35 157
disposals 70 6 138 – 119 142 475
impairments 1 – 2 – – – 3
reclassifications – 1 – – – 1 –
transferred tofrom assets held for sale 1 1 28 – – 1 25
at 30 september 2013 140 174 399 – 58 221 992
foreign exchange 8 – 19 – 4 15 46
depreciation on transfers to inventory – 3 – – – – 3
provided in the year 17 26 63 – 12 30 148
disposals 5 14 35 – 7 21 82
impairments – 6 – – – – 6
reclassifications 9 – – – 5 14 –
a t 	 30 	 s e p t e m b e r 	 201 4 153 189 408 – 64 201 1015
n e t 	 b ook 	 v al u e
at 1 october 2012 171 273 250 215 24 163 1096 
at 30 september 2013 166 275 411 186 26 174 1238
a t 	 30 	 s e p t e m b e r 	 201 4 175 253 494 167 28 150 1267 148 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 1  	 p r o p e r ty  	 p la n t 	 a n d 	 e q u i p m e n t 	continued
i m pa ir me n t 	 cha r ges
the £6m impairment charge in the year ended 30 september 2014 relates to the impairment of one owned ship within the uk  ireland operating 
segment the impairment charge is included within cost of sales 
additi ons 	 to 	 a ir craf t 	 and 	 equipment
additions of £149m 2013 £187m to aircraft and equipment primarily relates to the purchase of aircraft during the year including aircraft on finance 
leases as well as fleet improvements and capitalised maintenance on owned aircraft
advance 	 pa yment s 	 for 	 futur e 	 deliv er y 	 of 	 a ir craf t
additions of £169m 2013 £140m to advance payments for future delivery of aircraft were due to payments made for the future delivery of 
75 aircraft 2013 76 aircraft and interest of £8m 2013 £8m that has been capitalised during the year at a rate of 54 2013 54 
the disposal of £187m 2013 £136m from advance payments for future delivery of aircraft arises from the delivery and then sale and leaseback 
of nine aircraft 2013 13 aircraft
o t he r 	 d iscl o sur es
other equipment with a combined net book value as at 30 september 2014 of £150m 2013 £174m includes £92m 2013 £94m of fixtures and 
fittings £36m 2013 £55m of property plant and equipment under construction and £22m 2013 £23m of motor vehicles additions of other 
equipment totalling £50m 2013 £75m relate to £29m 2013 £23m of fixtures and fittings £14m 2013 £44m of property plant and equipment 
under construction and £7m 2013 £8m of motor vehicles 
reclassifications to land and buildings in the year of £30m 2013 £3m from other equipment primarily relate to buildings including the group’s 
new belgium aircraft hangar that were under construction in the prior year and which have been brought into use during the current year 
land and buildings comprise freehold and long leasehold properties with net book values of £131m 2013 £116m and short leasehold properties 
with a net book value of £44m 2013 £50m respectively
the net book value of assets held under finance leases and hire purchase contracts at 30 september 2014 was £423m 2013 £315m this includes 
£79m 2013 £89m of yachts motor boats and cruise ships £325m 2013 £210m of aircraft £5m 2013 £6m of land and buildings and £14m 
2013 £10m of other assets mainly vehicles
the net book value of property plant and equipment with restrictions on title being pledged as security for bank loans amounted to £101m 
2013 £161m 149 tui travel p l c annu al repo rt  accounts 2014
 
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1 2 	i n v estm e n t 	 i n 	 j o i n t 	 v e n tu r es 	 asso ci a t es 	 a n d 	 o th e r 	 i n v estm e n ts
the group’s equity investment in its joint ventures and associates is recorded in the consolidated financial statements as follows
share of net 
assets of joint 
ventures  
£m
share of  
net assets of 
associates  
£m
total share  
of net assets 
£m
at 1 october 2012 105 153 258
share of profits before amortisation interest and tax for the year 1 35 36
share of interest and tax charge 8 7 15
share of amortisation for the year – 4 4
lossprofit after tax for the year 7 24 17
additions 5 27 32
disposals 5 9 14
dividends paid 12 31 43
foreign exchange 1 6 7
at 30 september 2013 85 158 243
share of lossesprofits before amortisation interest and tax for the year 3 32 29
share of interest and tax charge 9 9 18
share of amortisation for the year – 3 3
lossprofit after tax for the year 12 20 8
additions 27 – 27
disposals 2 – 2
dividends paid 1 10 11
foreign exchange 8 11 19
a t 	 30 	 s e p t e m b e r 	 201 4 89 157 246
the group’s share of joint venture and associate profit after interest and tax was £8m 2013 £17m the result in the current year is shown before 
an impairment of £28m 2013 £nil against loans made to the group’s joint venture operating in the russian and ukrainian source markets given 
the ongoing challenging trading conditions in that environment and £11m 2013 £nil of losses not recognised for this joint venture the latter amount 
being because it would have reduced the group’s carrying value for its share of the joint venture’s net assets below zero including the impairment of 
£28m the share of losses of joint ventures and associates disclosed in the consolidated income statement is £20m 2013 £17m profit for the year 
i mpa irment 	 of 	 financial 	 asset s
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
impairment of loans to russian joint venture 28 –
change in the fair value of available for sale financial assets–air berlin 1 –
i mp air me n t 	 o f 	 fi n an c i al 	 a s s e t s 29 –
i n v estment s 	 in 	 and 	 transa c ti ons 	 with 	 j o int 	 v entur es
during the year the group invested £18m into bartu turizm yatirimlari anonim sirketi a 50 joint venture of the group and £8m into togebi 
holding limited a 49 joint venture of the group the group also acquired a further 41 shareholding in the former joint venture le passage 
to india tours and travels private limited that it did not already own further details of this acquisition are provided in note 13
in addition the group received a dividend of £7m 2013 £28m from sunwing travel group inc a 25 associate of the group
the principal joint ventures and associates and the proportion of voting rights are shown below
name of company proportion of voting rights held  nature of business
country of registration
incorporation
join t 	 ve n t u re s
travco group holding sae 500 incoming agency egypt 
atlantica hellas sa 500 hotel operator greece
atlantica hotels  resorts limited 499 hotel operator cyprus 
togebi holdings limited 490 tour operator cyprus 
bartu turizm yatirimlari anonim sirketi 500 hotel operator turkey
a s s oc i at e s
sunwing travel group inc 250 tour operator canada
blue diamond hotels and resorts inc 490 hotel operator barbados
grupo de inversiones lunar srl 490 hotel operator dominican republic
with the exception of sunwing travel group inc the group’s interest is in the ordinary share capital of each joint venture and associate in respect 
of sunwing travel group inc the group holds a 100 interest in its class q non voting and class y nonvoting common shares and 25 interest 
in its class z special voting shares  150 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 2 	i n v estm e n t 	 i n 	 j o i n t 	 v e n tu r es 	 asso ci a t es 	 a n d 	 o th e r 	 i n v estm e n ts 	continued
a summary of the group’s share of the results assets and liabilities of its associates and joint ventures for the year ended 30 september 2014 
is shown below
joi n t
ve n tu res
2014
£m
a s s oc i at e s
2014
£m
t ot al
2014
£m
joint
ventures
2013
£m
associates
2013
£m
total
2013
£m
r e ve nue 310 608 918 429 571 1000
operating costs 313 579 892 428 540 968
operating lossprofit 3 29 26 1 31 32
net interest payablereceivable 6 – 6 4 1 3
l o s s   p ro fi t 	 b e fore 	 t a x at ion 9 29 20 3 32 29
taxation 3 9 12 4 8 12
l o s s   p ro fi t 	 af t e r 	 t a x at ion 	 for 	 t h e 	 ye ar 12 20 8 7 24 17
noncurrent assets 145 255 400 122 183 305
current assets 95 155 250 104 154 258
total assets 240 410 650 226 337 563
current liabilities 75 160 235 72 128 200
noncurrent liabilities 87 93 180 69 51 120
total liabilities 162 253 415 141 179 320
net assets 78 157 235 85 158 243
losses not recognised 11 – 11 – – –
t o t al 	 n e t 	 a s s e t s 89 157 246 85 158 243
the above results exclude an impairment of £28m against loans made to the group’s joint venture operating in the russian and ukrainian source 
markets given the ongoing challenging trading conditions in that environment and £11m 2013 £nil of losses not recognised for this joint venture 
as it would have reduced the group’s carrying value for its share of the joint venture’s net assets below zero see note 31 for details of loans with 
togebi holdings limited
t o ge b i 	 h o l din gs 	 limi t e d
the group has an agreement with sgroup capital management limited sgcm regarding togebi holdings limited a jointlyowned investment 
holding company owned 51 by sgcm and 49 by the group the joint venture owns subsidiary tour operators and travel agency groups in russia 
and ukraine all major decisions have to be agreed by both shareholders and under ias 31 ‘interests in joint ventures’ the entity is accounted for as 
a joint venture sgcm is owned by a significant shareholder of tui ag and is therefore considered to be a related party togebi holdings limited 
and its subsidiary undertakings are therefore considered to be related parties by virtue of sgcm being the joint venturer to this investment
during the year ended 30 september 2014 tui travel holdings limited a direct subsidiary of the company injected a further £8m of capital into 
togebi holdings limited and provided one year interestbearing loans totalling £10m for the purpose of providing shortterm liquidity these loans 
have been included within the £28m impairment disclosed above after the year end tui travel holdings limited provided further loans to togebi 
holdings limited totalling £10m for the same purpose as the group had a constructive obligation to lend this amount at the year end the amount 
has been included within the £28m impairment noted above
sun win g 	t ra v el 	 gr oup 	i nc
the strategic venture with sunwing travel group inc is accounted for as an associate as the group does not control or jointly control this business
other 	 in v estment s
trade
and listed
investments
£m
non
consolidated
entities
£m
total
£m
at 1 october 2012 46 20 66 
additions 1 – 1
reclassification to current asset investments 30 – 30
investments consolidated for the first time – 7 7
change in the fair value of available for sale financial assets through other comprehensive income 1 – 1
change in the fair value of assets held at fair value through profit and loss 5 – 5
at 30 september 2013 23 13 36
acquisition through business combinations 1 – 1
disposals 1 – 1
investments consolidated for the first time – 8 8
change in the fair value of available for sale financial assets through other comprehensive income 1 – 1
change in the fair value of assets held at fair value through profit and loss 1 – 1
foreign exchange – 1 1
a t 	 30 	 s e p t e m b e r 	 201 4 21 4 25 151 tui travel p l c annu al repo rt  accounts 2014
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
trade and listed investments at 30 september 2014 represent the group’s 38 2013 44 shareholding in air berlin plc and a 10 2013 10 
holding in atlantica leisure group limited the group’s investment in air berlin plc is carried at fair value determined by reference to its equity 
share price at the balance sheet date due to the prolonged decline in the equity share price of air berlin plc in accordance with ias 39 a diminution 
in value of the investment of £1m which was previously recognised in the consolidated statement of comprehensive income has now been charged 
to the consolidated income statement and separately analysed within impairment of financial assets
nonconsolidated entities are recorded at cost and reflect the group’s net investment held in subsidiaries which due to the immaterial size of 
their revenues result and financial position have not been consolidated balances between these entities and consolidated subsidiaries have not 
been eliminated
1 3  	 b usi n ess 	 c o m b i na ti o ns
 a  	 acquisiti ons 	 in 	 the 	 y ear 	 ended 	 30 	 september 	 20 1 4
acquisitions were made in the year for a total investment value of £31m in order to expand business operations in line with the group’s growth 
strategy in accordance with the provisions of ifrs 3 revised incidental acquisition costs of £3m have been expensed within administrative expenses 
and disclosed as an acquisition related expense in the consolidated income statement in the year these acquisitions gave rise to provisional 
goodwill of £23m 
the one significant business acquired in the year on 20 december 2013 was a further 41 of the voting equity shares of le passage to india tours 
and travels private limited ‘lpti’ a tour operator and destination management company incorporated in india the group previously owned 50 
of lpti and accounted for this as a joint venture the total consideration for this step acquisition was £20m including £10m of noncash consideration 
for the group’s share of lpti that it previously owned
two other step acquisitions made during the year in which the group acquired the remaining 50 of the voting equity shares that the group did not 
previously own were of oft reisen gmbh incorporated in germany and voukouvalidis tours tourism sa incorporated in greece
other individually insignificant businesses include six germanbased travel agency businesses and 51 of the voting share capital of global obi sl 
known as roi back
the relative size of the acquisitions made is set out in the table below
consideration
£m
number of
acquisitions
total
consideration
£m
total
goodwill
£m
0 – 5 10 11 9
5 1 20 14
t otal 11 31 23
the total fair value of the consideration for these acquisitions was £31m comprising £19m initial cash consideration £1m deferred consideration 
and £11m noncash consideration for the group’s share of the acquired joint ventures
the total provisional net assets acquired are set out below
fair value of net 
assets acquired
£m
intangible assets 12
property plant and equipment 2
investments 1
trade and other receivables 11
cash 5
current liabilities 19
deferred tax liabilities 4
n e t 	 a s s e t s 8
total consideration 31
less net assets acquired as above 8
t o t al 	 goo d w i ll 23
all acquisitions have been accounted for using the purchase method as required by ifrs 3 revised certain nonsignificant fair value adjustments 
have necessarily been prepared on a provisional basis due to the recent timing of certain acquisitions experience may result in revisions to fair 
values in the subsequent accounting period no material amount of goodwill is expected to be deductible for tax purposes there are no material 
accounting policy adjustments nor any significant differences between the book and fair values of assets and liabilities acquired no single acquisition 
in the current year is considered material to goodwill and as such the provisional net asset table shown above has been presented as a total for all 
acquisitions in the year
r esidua l 	 g o od w il l
a consistent process is undertaken for each acquisition to identify the fair value of separable assets and liabilities acquired including the fair value 
of intangible assets such as brands order books licences customer relationships and other intangible assets that may exist the residual goodwill 
on acquisition represents the value of assets and earnings that do not form separable assets under ifrs 3 revised but nevertheless are expected 
to contribute to the future results of the group residual goodwill in respect of acquisitions in the current year predominantly relates to the 
acquisition of lpti and represents the ability to control fully that business with a view to driving economies of scale and participating fully in the 
indian market 152 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 3  	 b usi n ess 	 c o m b i na ti o ns 	continued
acquisiti on 	 r elated 	 expenses
ifrs 3 revised requires consideration that is contingent on future service by the vendor to be expensed over the service period and acquisition costs 
to be expensed as incurred in this respect £10m 2013 £8m has been expensed in the year and included within the acquisition related expenses 
in the consolidated income statement a further £6m has been incurred as part of the forthcoming merger with tui ag
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
ac qui s i t ion 	 re l at e d 	 e x p e n s e s 	 in 	 op e r at ing 	 p ro fi t
amortisation of business combination intangibles 51 57
merger related expenses 6 –
other acquisition related expenses 3 2
remuneration for postcombination services 7 6
total 67 65
c o nsi de rati o n 	 pa ya b le
movements in deferred and contingent consideration in the year were as follows
deferred
consideration
£m
contingent
consideration
£m
loan notes
£m
total
£m
at 1 october 2013 5 7 1 13 
adjustments in respect of prior year acquisitions – 1 – 1
recognised in the year – 5 – 5
cash paid 1 6 – 7
foreign exchange – 1 – 1
a t 	 30 	 s e p t e m b e r 	 201 4 4 4 1 9
contingent consideration payable is dependent on the results of the businesses over a number of future periods and in some cases is also 
dependent upon the previous owners or management of those businesses remaining in employment with the group during the earnout period
a £1m adjustment to amounts recognised in respect of prior year acquisitions has been made during the year this follows the latest assessment of 
expected earnings figures for these acquired entities with the consideration payable being based upon a multiple of the appropriate earnings figures
an estimate of the range of undiscounted amounts of contingent consideration payable for current and prior year acquisitions is listed below 
the expected contingent consideration for all acquisitions is calculated using multiples of underlying earnings with some amounts payable 
dependent upon employment the amounts payable will be dependent on the results of the acquired businesses over the following periods
acquisition 
basis of calculation
for consideration payable
financial year
of acquisition
period for calculation
of consideration
range of consideration
payable 
£m
jbs group inc earnings and employment 2013 up to 31 march 2015 03
lpti earnings and employment 2014 up to 31 december 2018 06
other individually insignificant considerations payable
earnings alone and 
earnings  employment 20132014 up to 30 september 2016 02
t o t al 	 r ange 	 o f 	 c on t inge n t 	 c on s i de r at ion 	 p ay ab l e 	 in	
re s p e c t 	 o f 	 c ur re n t 	 an d 	 p r ior 	 ye ar 	 ac qui s i t ion s 	 011
b  	c ash 	 fl o ws 	 arisin g 	 in 	 r espec t 	 of 	 a cquisiti ons
total cash flows in the year relating to acquisitions including amounts paid in respect of deferred and contingent consideration arising on prior year 
acquisitions are as follows
cash paid
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
ac qui s i t ion s 	 in 	 t h e 	 c u r re n t 	 ye ar 	  e xc l u ding 	 ac qui s i t ion 	 re l at e d 	 e x p e n s e s  19 12
cash acquired with acquisitions 5 7
net cash outflow in the year relating to current year acquisitions 14 5
cash paid relating to prior year acquisitions 7 5
n e t 	 c a s h 	 ou t flow 	 in 	 t h e 	 ye ar 	 re l at ing 	 t o 	 ac qui s i t ion s 21 10
acquisition related expenses charged to the income statement 3 2
t o t al 	 c a s h 	 ou t flow s 	 in 	 t h e 	 ye ar 	 re l at ing 	 t o 	 ac qui s i t ion s 24 12 153 tui travel p l c annu al repo rt  accounts 2014
 
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business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
 c  	 c o nso li dat ed 	 in c o me 	 st ate me n t
if the results of the acquired businesses had been included in these consolidated financial statements from 1 october 2013 until each of their 
respective acquisition dates the group‘s revenue would have been approximately £35m higher and underlying earnings and profit before tax 
would have been approximately £1m higher 
since the respective acquisition dates the acquired businesses contributed revenues of £48m underlying earnings and profit after tax were not 
materially impacted
d  	 p ri or 	 y ear 	 r e visi ons 	 to 	 fa ir 	 values
in the year ended 30 september 2013 the group acquired various businesses for a total consideration of £30m the finalisation of the acquisition 
balance sheets for these businesses has not led to a material adjustment to goodwill presented in the 2013 accounts and therefore there is no 
restatement of the results for the year ended 30 september 2013 or balance sheet as at 30 september 2013 in respect of these finalisations 
1 4 	 d ef e r r e d 	 tax 	 assets 	 a n d 	 l i a b i l i ti es
assets liabilities net
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
intangible assets 1 2 132 145 131 143
finance lease transactions – – 2 2 2 2
property plant and equipment 94 86 27 28 67 58
financial instruments 19 29 14 13 5 16
employee benefits 95 94 1 1 94 93
other shortterm temporary differences 129 138 133 114 4 24
tax value of losses carried forward 69 91 – – 69 91
t otal 407 440 309 303 98 137
set off of deferred tax within the same jurisdiction 242 272 242 272 – –
n e t 	 d e fe r re d 	 t a x 	 a s s e t s 165 168 67 31 98 137
the group has recognised deferred tax assets relating to tax losses in individual tax jurisdictions based on forecast future taxable profits
unr eco gnised 	 deferr ed 	 t ax 	 asset s
deferred tax assets have not been recognised in respect of the following items reported at the applicable tax rate
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
capital losses 3 3
other tax losses 292 267
t o t al 	 l o s s e s 295 270
these assets have not been recognised principally because the directors are not certain of the timing of any benefits that might arise in the future 
other tax losses are primarily trading losses and include £4m which are subject to a four year expiry period and £12m which expire within one year 
the balance of losses are not subject to time expiry and are available for utilisation against profits arising in future periods in the territories in which 
they have arisen there are no other unprovided deferred tax liabilities nor unrecognised deferred tax assets 
movements in deferred taxation during the current year
balance at
1 october
2013
£m
arising on
acquisition
£m
released on 
disposal
£m
creditedcharged 
to the
consolidated
income
statement
£m
recognised
outside of the
consolidated
income 
statement 
£m
foreign
exchange
£m
b a l a n c e 	 a t
3 0 	 s e p t em b er
2014
£m
intangible assets 143 2 1 10 – 3 131
finance lease transactions 2 – – – – – 2
property plant and equipment 58 – – 9 – – 67
financial instruments 16 1 – 4 17 3 5
employee benefits 93 – – 50 51 – 94
other shortterm temporary differences 24 1 – 35 23 15 4
tax value of losses carried forward 91 – – 20 – 2 69
t otal 137 4 1 82 57 11 98 154 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 4 	 d ef e r r e d 	 tax 	 assets 	 a n d 	 l i a b i l i ti es 	continued
movements in deferred taxation during the prior year are analysed as follows
balance at
1 october
2012
£m
arising on
acquisition
£m
creditedcharged
to the
consolidated
income
statement
£m
recognised
outside of the
consolidated
income
statement
£m
foreign
exchange
£m
balance at
30 september
2013
£m
intangible assets 140 – – – 3 143
finance lease transactions 2 – – – – 2
property plant and equipment 39 – 19 – – 58
financial instruments 5 – 7 22 4 16
employee benefits restated 105 3 3 14 2 93
other shortterm temporary differences 15 1 4 3 1 24
tax value of losses carried forward 74 1 15 – 1 91
total 96 5 28 11 3 137
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’
intangible asset temporary differences arise in respect of assets recognised on acquisition property plant and equipment temporary differences 
principally relate to tax depreciation in the uk france and germany employee benefits’ temporary differences arise in respect of defined benefit 
pension scheme liabilities and future deductions available on the vesting of employee awards financial instruments and foreign exchange temporary 
differences arise in respect of financial instruments accounted for under ias 39 and principally reflect the fair value at 30 september 2014 of cash 
flow hedging derivatives that will be settled against future transactions other shortterm temporary differences relate to operating expenses and 
related accruals and provisions for which a tax deduction has not yet been recognised 
1 5  	i n v e n t o r i es
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
marine inventories 19 22
airline spares and operating equipment 23 20
other operating inventories 14 15
t otal 56 57
included within cost of sales in the year is a writedown of inventories of £nil 2013 £3m to net realisable value 
1 6 	t ra d e 	 a n d 	 o th e r 	 r e c e i va b l es
3 0 	 s e p t e m b e r 	 2 01 4	 30 september 2013
c u r r en t
a s se t s
£m
n on 
c u r r e n t
a s se t s
£m
t ot al
a s se t s
£m
current
assets
£m
non
current
assets
£m
total
assets
£m
trade receivables gross 538 – 538 497 – 497
less provision for impairment 51 – 51 49 – 49
487 – 487 448 – 448
amounts owed by related parties note 31 56 30 86 55 36 91
interest bearing other receivables – 2 2 7 3 10
other receivables 226 46 272 189 56 245
769 78 847 699 95 794
prepayments 523 109 632 632 110 742
t otal 1292 187 1479 1331 205 1536
other receivables include aircraft related receivables lease and security deposits purchase tax receivables and various end of season rebates due 
from suppliers
the maximum exposure to credit risk for financial assets as defined in note 1ei which are included within trade and other receivables by 
geographic region was
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
united kingdom 138 141
germany 90 101
france 93 82
other european countries 200 207
rest of the world 127 91
t otal 648 622 155 tui travel p l c annu al repo rt  accounts 2014
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
trade receivables are disclosed net of provisions for bad and doubtful debts an analysis of which is shown below
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
balance at the beginning of the year 49 49
charge to the consolidated income statement 13 15
utilisation of provision 11 15
total 51 49
the ageing of the financial assets included within trade and other receivables at the balance sheet date was
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
g ro s s
£m
p r ov i s i o n
£m
n e t
£m
gross
£m
provision
£m
net
£m
not overdue 515 11 504 479 5 474
overdue 130 days 71 1 70 73 1 72
overdue 3190 days 44 1 43 52 1 51
overdue 91180 days 20 5 15 13 2 11
overdue more than 180 days 49 33 16 54 40 14
total 699 51 648 671 49 622
no individually material bad debt provision movements or charges have been recorded in the year based on past experience and the post balance 
sheet period to the date of approval of these consolidated financial statements the group considers that the provision allowance recorded is 
adequate within the provision there are no individually material amounts held trade receivables not overdue and not impaired include amounts 
due from travel agencies tour operators and hoteliers in respect of mainstream specialist  activity and accommodation  destinations sectors 
provisions for doubtful debts in respect of trade receivable balances are managed by each underlying business unit where the debts arise and are 
based on local management experience factors considered include the age of the receivable previous experience with the counterparty and the 
economic environment in which the counterparty is located 
credit exposure to individual customers booking holidays directly is limited as full payment is required before the issue of tickets and holiday 
departure in the case of travel services sold by third party agents the credit risk depends on the creditworthiness of those third parties but this 
risk is also limited because of the relatively short period of credit the directors do not consider there to be significant concentration of credit risk 
relating to trade and other receivables
deposits and prepayments include amounts paid in advance to suppliers of hotel and other services in order to guarantee the provision of those 
supplies there is a credit risk in respect of the continued operation of those suppliers during the period over which the supplies are made the 
provision against overdue receivables of £40m 2013 £44m relates to gross receivables of £52m 2013 £74m 
there are £132m of receivables that are overdue and not impaired at 30 september 2014 2013 £118m 
amounts owed by related parties are disclosed further in note 31
1 7  	c ash 	 a n d 	 cash 	 e q u i va l e n ts
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
cash in hand 8 6
cash at bank 391 920
deposits 975 827
c a s h 	 an d 	 c a s h 	 e q ui v al e n t s 1374 1753
at 30 september 2014 cash and cash equivalents have been shown net of specific overdraft balances within the group’s pooling facilities where 
the group has demonstrated both the intention and ability to exercise its right to settle these particular balances simultaneously at 30 september 
2013 £491m of cash and cash equivalents within the group’s pooling facilities were shown gross of specific overdraft balances as the group did 
not have the intention to settle those particular balances simultaneously at that point in time
cash and cash equivalents includes £50m 2013 £47m that is not available for immediate use by the group this is made up of monies held to meet 
regulatory requirements together with cash balances on shortterm deposits held on a restricted basis by the group’s captive insurance funds as 
part of their ongoing operations
in addition to the above restricted cash balances the group is involved in a longrunning vat case with the belgian government during the previous 
financial year a total of €116m was received from the belgian government in relation to the disputed vat for the years up to and including 
30 september 2011 to stop the interest charge from accumulating should they lose the case eventually the outcome of the case remains uncertain 
and is not expected to be finalised in the near future given the uncertainty the group continues to accrue vat payable on the existing basis if the 
group were to win the legal case the amount recovered would be subject to corporation tax in belgium this money totalling €116m £90m as 
at 30 september 2014 is currently held on a bank deposit account in order that a collateralised bank guarantee can be provided to the belgian 
government for the duration of the legal proceedings to give them assurance that they will be paid the money back should they win the case 
this receipt in 2013 of €116m £98m is shown in the consolidated statement of cash flows as the item fulfils the ias 7 criteria for cash and cash 
equivalents and therefore the balance is included in cash and cash equivalents in view of the guarantee provided to the belgian government the 
group’s ability to use this cash is restricted  156 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
1 8 	 oth e r 	 i n v estm e n ts
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
trade investment – 30
regulatory deposits with a term exceeding 3 months 16 5
other deposits with a term exceeding 3 months 2 1
o t he r 	 inve s t me n t s 18 36
at 30 september 2013 the trade investment of £30m represented the portion of the group’s shareholding in the airline group limited that was 
disposed of in march 2014 for total consideration of £31m
1 9  	 assets 	 classifi e d 	 as 	 h e l d 	 f o r 	 sa l e
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
yachts and motor boats – 1
land and buildings 5 5
other 2 4
a s s e t s 	 c l a s s i fi e d 	 a s 	 h e l d 	 for 	 s ale 7 10
assets held for sale are expected to be sold within 12 months 
2 0 	i n t e r est b e a r i n g 	 l o a ns 	 a n d 	 b o r r o w i n gs
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
c ur re n t 	 l i a bil i t i e s
bank loans and overdrafts 7 528
finance leases 34 22
convertible bonds 2 –
other financial liabilities 46 44
t otal 89 594
at 30 september 2014 bank overdrafts have been shown net of specific cash balances within the group’s pooling facilities where the group has 
demonstrated both the intention and ability to exercise its right to settle these particular balances simultaneously at 30 september 2013 £491m 
of bank overdrafts were shown gross of specific cash balances within the group’s pooling facilities where the group did not have the intention to 
settle those particular balances simultaneously at that point in time 
other financial liabilities mainly comprise the fair value of three put options written by the group two of these options are to the sole remaining 
noncontrolling interest shareholder in l’tur tourismus ag that may require the group to purchase the noncontrolling interest shareholding 
totalling 30 the first put option over 20 of the shares may be exercised at any time until 31 december 2015 a second put option written by the 
group to the same noncontrolling interest shareholder for the remaining 10 shareholding has no time limit the third put option is to the sole 
remaining partner of gebeco gesellschaft fur internationale begegnung und cooperation mbh  co kg a german registered partnership and is 
to purchase the remaining noncontrolling interest of 49 this may be exercised at any time until 1 september 2017 details of the fair value of 
these options are included in note 26h
fair value changes in the put option liability are included within financial expenses or financial income
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
n o n  c u r re n t 	 li a b i li t i e s
bank loans 53 61
loan notes 1 1
finance leases 348 253
convertible bonds 371 697
other financial liabilities 1 –
t otal 774 1012 157 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
the bank loans and loan notes are repayable
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
within one year 7 37
between one and five years 23 27
after more than five years 31 35
t otal 61 99
certain loans are secured on the underlying assets of the company in whose name the borrowings are made including all finance leases which are 
secured against their respective underlying assets the comparative figures for the maturity analysis of bank loans and loan notes payable after 
more than one year at 30 september 2013 have been reclassified to better reflect their maturity profile further details of debts falling due after 
more than five years is given in notef
details of amounts owed to related parties are included in note 31
finance lease liabilities relate primarily to the leasing of aircraft boats cruise ships and equipment the increase in amounts due after five years 
is driven by aircraft acquired in the year these are treated as finance leases based on the terms of the leases which include purchase options 
group obligations under finance leases and hire purchase contracts are payable as follows
minimum lease payments
p r in c ip a l
£m
i n t e rest
£m
3 0 	 s e p t em b er
2014
£m
principal
£m
interest
£m
30 september
2013
£m
i n 	 re s p e c t 	 o f 	 airc r af t  	 b o at s  	 c r ui s e 	 s hip s 	 an d 	 e quip me n t 	
p a y abl e 	 wit hi n 
one year 34 14 48 22 11 33
one to five years 102 46 148 83 38 121
after five years 246 27 273 170 34 204
t otal 382 87 469 275 83 358
c o n v e r ti b le 	 b o n ds
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
£350m convertible bond 60 october 2014 2 336
£400m convertible bond 49 april 2017 371 361
t otal 373 697
at 30 september 2014 the group had two convertible bonds in issue details of which are as follows
• a £350m fixed rate 6 bond issued in october 2009 the bond was convertible at the option of the holders before or upon maturity in 
october 2014 conversion into ordinary shares occurred prior to 30 september 2014 in respect of £348m at par value of the original bond 
the carrying value of which was £347m at the respective dates of conversion further details are given in note 24 the balance of £2m was 
repaid in full on 5 october 2014
• a £400m fixed rate 49 bond was issued in april 2010 the bond is convertible at the option of the holders before or upon maturity in april 
2017 conversion into ordinary shares will occur at a premium of 33 to the group’s share price on the date of issuance
the group holds an issuer call option to redeem the convertible bonds at their principal amounts together with accrued interest upon fulfilment 
of certain predetermined criteria the fair value of this option was negligible at 30 september 2014 the equity portion of the bonds of £67m 
2013 £114m is included in the convertible bond reserve
r econciliati on 	 of 	 fa ce 	 value 	 to 	 carr yin g 	 amount
£350m
convertible
bond
£m
£400m
convertible
bond
£m
total
convertible
bonds
£m
convertible bond – face value 350 400 750
issue cost 9 9 18
cash received 341 391 732
equity portion 47 67 114
interest accretion in prior years 35 33 68
issue costs amortised in prior years 7 4 11
carrying amount at 30 september 2013 336 361 697
interest accretion 11 9 20
amortisation of issue costs 2 1 3
conversion 347 – 347
c ar r y ing 	 amou n t 	 at 	 30 	 s e p t e mb e r 	 20 1 4 2 371 373 158 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 1  	c u r r e n t 	 tra d e 	 a n d 	 o th e r 	 pa ya b l es
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
trade payables 1096 931
deferred and contingent consideration note 13a 2 4
other payables 188 177
amounts owed to related parties note 31 134 97
other taxes and social security costs 88 87
accruals and deferred income 1503 1709
client money received in advance 1847 1768
t otal 4858 4773
further disclosure of amounts owed to related parties is included in note 31 
2 2 	 p r o v isi o ns 	 f o r 	 l i a b i l i ti es
aircraft
maintenance
£m
restructuring
£m
other
£m
total
£m
at 1 october 2013 365 45 229 639 
provided in the year 111 14 109 234
released in the year 3 2 19 24
unwinding of discounted amount note 5 5 – 1 6
costs incurred 87 25 73 185
foreign exchange 17 3 6 26
a t 	 30 	 s e p t e m b e r 	 201 4 374 29 241 644
analysed as
noncurrent 279 – 81 360
current 95 29 160 284
374 29 241 644
at 30 september 2013
analysed as
noncurrent 266 – 96 362
current 99 45 133 277
365 45 229 639
air craf t 	 ma in te na n ce
in respect of aircraft provision is made for maintenance overhaul and repair costs of operating leased airframes engines and certain other 
components based on the anticipated external costs of the next maintenance event calculated by reference to costs experienced and published 
manufacturers’ data the charge to the consolidated 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 the number of aircraft in the fleet
the provision is expected to be fully utilised within 12 years of the balance sheet date depending upon the timing of maintenance events or end 
of lease dates where compensation is payable
r estruc tu r i n g
restructuring which includes severance payments relates to provisions arising as a result of reorganisation and restructuring plans that are irrevocably 
committed further details of significant restructuring projects in the current year are set out in note 4 the provision is expected to be utilised 
within 12 months of the balance sheet date  159 tui travel p l c annu al repo rt  accounts 2014
 
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business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
o t he r
other provisions relate to outstanding claims litigation obligations under denied boarding compensation regulations 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 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
the group has a policy to mitigate the financial risk of claims 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 at 30 september 2014 amounts totalling £65m 2013 £61m was provided for by the group’s captive insurance companies and 
included within other provisions
other provisions also includes an amount of £10m 2013 £nil relating to the constructive obligation at 30 september 2014 for additional funding 
loans to be paid to togebi holdings limited after the year end and which is included within the £28m impairment of russian loans as disclosed in 
note 12
a significant portion 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 are estimated 
and are inherently uncertain
2 3  	n o ncu r r e n t 	 tra d e 	 a n d 	 o th e r 	 pa ya b l es
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
deferred and contingent consideration note 13a 6 8
other payables 44 37
amounts owed to related parties note 31 1 1
accruals and deferred income 44 25
client money received in advance 9 8
t otal 104 79
2 4 	c a l l e d 	 u p 	 sha r e 	 ca p i ta l
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
full y 	 p ai d 	 an d 	 i s s u e d
1133842328 2013 1118010670 ordinary shares of 10p each 114 112
full y 	 p ai d 	 b u t 	 no t 	 ye t 	 i s s u e d
83710258 2013 nil ordinary shares of 10p each 8 –
t otal
1217552586 2013 1118010670 ordinary shares of 10p each 122 112
following the receipt of irrevocable conversion notices from convertible bond holders during august 2014 15831658 ordinary shares of 10p each 
were issued in september 2014 for a total consideration of £55m representing the carrying value of the convertible bond extinguished at the date 
of conversion as such no cash was received on the issuance of these shares the nominal value of the ordinary shares issued was £2m £53m was 
credited to the share premium account on the issuance of these shares
following the receipt of irrevocable conversion notices from convertible bond holders in september 2014 83710258 ordinary shares of 10p each 
were issued between 1 and 7 october 2014 for a total consideration of £292m representing the carrying value of the convertible bond extinguished 
no cash was received on the issuance of these shares as the date of receipt of conversion notices represents the date of the extinguishment of 
the convertible bond liability the 83710258 ordinary shares are deemed paid up in accordance with section 58323 of companies act 2006 
notwithstanding the fact that they were issued in october 2014 the nominal value of these ordinary shares of £8m together with share premium 
of £284m has been recognised in called up share capital and the share premium account respectively 
as described more fully in note 36 the ultimate parent company tui ag is the beneficial owner of 5372 2013 5448 of the company’s issued 
ordinary share capital as at 30 september 2014
at 30 september 2014 7451101 shares 2013 8047575 shares were held by the group’s employee benefit trust based on the 30 september 2014 
closing mid share price of £389 2013 £368 the value of shares held was £29m 2013 £30m 
details of dividends debited to equity in the year are set out in note 9 of the consolidated financial statements whilst the company has the authority 
to purchase its own shares in the open market it has not done so in either the current or prior years 160 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 5  	c a p i ta l 	 a n d 	 r ese r v es
other reserves
note
called up
share capital
£m
convertible
bond
reserve
£m
merger
reserve
£m
translation
reserve
£m
hedging
reserve
£m
accumulated
losses
£m
e q u i t y
hol d e r s
o f 	 p a r e n t
£m
non
controlling
interests
£m
t ot al
e q u i t y	
£m
balance at 1 october 2012  112 88 2523 129 25 1262 1565	 44 1609	
profit for the year restated – – – – – 51 51 3 54
o t he r 	 c om p re h e n s i ve 	 in c ome 
 lo s s  	 for 	 t h e 	 ye ar
foreign exchange translation – – – 56 1 10 47 4 43
remeasurements of defined benefit 
pension schemes restated 6c – – – – – 11 11 – 11
tax on remeasurement of defined 
benefit pension schemes restated 8iii – – – – – 14 14 – 14
cash flow hedges
– movement in fair value 26j – – – – 76 – 76 – 76
–  amounts recycled to the 
consolidated income statement 26j – – – – 5 – 5 – 5
tax on cash flow hedges 8iii – – – – 22 – 22 – 22
available for sale financial assets
– movement in fair value 12 – – – – – 1 1 – 1
other comprehensive incomeloss 
for the year restated – – – 56 58 34 36 4 40
total comprehensive incomeloss for 
the year – – – 56 58 17 15 1 14
t r an s ac t ion s 	 w i t h 	 ow n e r s       	 	
sharebased payment – charge for the 
year – – – – – 15 15 – 15
repurchase of own shares – – – – – 16 16 – 16
dividends 9 – – – – – 130 130 2 132
acquisition of noncontrolling interest – – – – – 2 2 – 2
change in deferred tax rate on equity 
portion of convertible bond – 3 – – – – 3 – 3
a t 	 30 	 s e p t e m b e r 	 201 3 112 91 2523 185 83 1378 1450 41 1491 161 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
other reserves
note
called up
share 
capital
£m
share
premium 
account
£m
convertible
bond
reserve
£m
merger
reserve
£m
translation
reserve
£m
hedging
reserve
£m
accumulated
losses
£m
e q u i t y
hol d e r s
o f 	 p a r e n t
£m
non
controlling
interests
£m
t ot al
e q u i t y	
£m
balance at 1 october 2013 112 – 91 2523 185 83 1378 1450	 41 1491	
profit for the year – – – – – – 183 183 4 187
o t h e r 	 c om p re h e n s i ve 	  lo s s  
inc ome 	 for 	 t h e 	 ye ar
foreign exchange translation – – – – 158 4 6 160 1 159
foreign exchange gains recycled 
through the consolidated income 
statement – – – – 1 – – 1 – 1
remeasurement of the defined 
benefit pension scheme 6c – – – – – – 192 192 – 192
tax on remeasurement of the defined 
benefit pension scheme 8iii – – – – – – 45 45 – 45
cash flow hedges
– movement in fair value 26j – – – – – 29 – 29 1 28
–  amounts recycled to the 
consolidated income statement 26j – – – – – 113 – 113 – 113
tax on cash flow hedges 8iii – – – – – 17 – 17 – 17
available for sale financial asset 
– movement in fair value 12 – – – – – – 1 1 – 1
– amounts recycled to the 
consolidated income statement 12 – – – – – – 1 1 – 1
other comprehensive lossincome 
for the year – – – – 159 71 153 241 2 239
total comprehensive lossincome for 
the year – – – – 159 71 30 58 6 52
t r an s ac t ion s 	 w i t h 	 ow n e r s
sharebased payment –  
charge for the year – – – – – – 24 24 – 24
repurchase of own shares – – – – – – 33 33 – 33
dividends 9 – – – – – – 150 150 3 153
acquisition of noncontrolling interest – – – – – – 4 4 1 3
conversion of convertible bonds net 
of deferred tax 24 10 337 24 – – – 47 370 – 370
a t 	 30 	 s e p t e m b e r 	 201 4 122 337 67 2523 26 12 1464 1599 45 1644
shar e 	 pr emium 	 a ccount
following the receipt of irrevocable conversion notices from convertible bond holders during august and september 2014 99541916 ordinary 
shares of 10p were issued in september and october 2014 for a total consideration of £347m representing the carrying value of the convertible 
bond extinguished at the dates of conversion no cash was received on the issuance of these shares the nominal value of the ordinary shares 
issued was £10m and £337m was recognised in the share premium account on the issuance of these shares
c on v er tible 	 bond 	 r eser v e
the convertible bond reserve comprises the equity element of the convertible bonds and the related portion of the bonds’ issue costs see note 20 
the equity element is calculated in accordance with the accounting policy described in note 1eii and is presented net of deferred tax £47m has 
been transferred from the convertible bond reserve to the profit and loss reserve on the conversion and extinguishment of the equity element of 
the convertible bond 
other 	 r eser v es
details of dividends to equity holders of the parent company which have been debited to equity in the year are set out in note 9 
exchange gains or losses arising on the translation to the group’s presentation currency are recorded in the translation reserve the hedging reserve 
records the portion of the cumulative gains or losses on hedging instruments in cash flow hedges that are determined as effective gains or losses 
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 162 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 6 	 fi na n ci a l 	 i nstru m e n ts
 a  	t r easur y 	 risk 	 o v er view
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
the group’s key financial market risks are in relation to foreign currency rates and jet fuel prices 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 and liquidity risk are considered in notes 26d and 26f respectively capital management including capital risk and cash conversion 
is considered in notes 34 and 27b 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 forecasts 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 its counterparty exposure with individual financial institutions throughout the year 
such counterparty risk can arise by way of cash deposited or derivative instruments traded
b  	c urr enc y 	 risk 	 mana gement
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 option based 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 presents 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 were used to translate to presentation currency excluding the impact of hedged transactions and are 
illustrative of the rates applied during the current and prior year
average rate mid spot rate
£1 gbp equivalent
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
year ended
30 september
2013
3 0 	 s e p t em b er
2014
30 september
2013
us dollar 1657 1561 1619 1615
euro 1221 1190 1287 1196
swedish krona 10990 10225 11767 10355
as at 30 september 2014 the group has hedged forecast transactions for 40bn 2013 43bn and €15bn 2013 €13bn for periods up until 
winter 2015 principally relating to winter 2014 and summer 2015  163 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
 c  	c ommodit y 	 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 2014 the group has hedged transactions for fuel of 17m metric tonnes 2013 17m metric tonnes for periods up until 
winter 2015 
details of fuel forward derivative instruments are set out in note 26i
d  	c r edit 	 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 only exception to this at 30 september 2014 was the €116m 2014 £90m 2013 £98m 
received from the belgian government in relation to the long running vat case note 17 this money is currently deposited with two 2013 one 
financial institutions to enable a collateralised bank guarantee to be provided to the belgian government the group monitors the credit ratings of 
its counterparties where applicable as part of its ongoing assessment of its credit exposure material financial instruments are only transacted 
with major financial institutions with a strong credit rating of a1p1 or a2p2 
loans and other receivable 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 maximum credit exposure to the carrying amount of financial assets at the balance sheet date is shown in the table below 
c a r r y i n g 	 v a l u e
3 0 	 s e p t em b er
2014
£m
carrying value
30 september
2013
£m
trade and other receivables note 16 648 622
cash and cash equivalents note 17 1374 1753
derivatives – contracts used for hedging note 26i 160 44
trade and listed investments note 12 21 23
other investments note 18 18 36
t otal 2221 2478
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 £51m 2013 £49m
cash equivalents and other investments principally comprise money market deposits and other shortterm investments the investments are 
predominantly with counterparties with a strong credit rating of a1p1 or a2p2 at 30 september 2014 approximately 20 2013 42 of the 
group’s unrestricted cash and cash equivalents was invested with counterparties based in the united kingdom and 63 2013 38 was based 
with counterparties based in the republic of ireland 
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 their 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 2014 
prepaid accommodation which is recoverable after more than one year was £102m 2013 £108m  164 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 6 	 fi na n ci a l 	 i nstru m e n ts 	continued
e  	i nter est 	 rate 	 risk
the group manages interest rate risk by fixing interest rates for the majority of the group’s longer term debt variable interest generally applies to 
shorter term debt and that which fluctuates with working capital flows variable rate interest on pooled bank overdrafts is offset by similar credit 
interest on cash held elsewhere in the currency pools 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 fixedfloating rate aircraft and cruise ship leases and floating rate bank loans and 
cash balances 
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 
as follows
financial instrument currency 
nominal 
interest rate 
range of 
years 
of maturity 
c a r r y i n g
a mo un t	
3 0 	 s e p t em b er
2014	
£m
carrying
amount
30 september
2013
£m 
convertible bonds note 20 sterling 49 – 60 2014 – 2017 373 697
secured bank loans sterling 12 – 37 2014 – 2018 6 19
eur 18 2014 – 2027 15 16
usd 30 2014 – 2024 38 60
unsecured bank loans eur 11 – 68 2014 – 2015 1 3
60 98
finance leases eur 13 – 84 2014 – 2046 64 74
usd 15 – 55 2014 – 2024 317 198
mad 59 – 65 2014 – 2017 1 2
aud 72 – 118 2014 – 2015 – 1
382 275
loan notes usd 65 2016 1 1
other financial liabilities eur 0 – 50 2014 – 2019 47 44
bank overdrafts eur 05 2014 – 491
t o t al 	 i n t e re s t b e ar i ng 	 l i ab i l i t ie s 863 1606
analysed between
fixed rate instruments 838 1057
variable rate instruments 25 549
863 1606
the interest rate applicable to bank overdrafts in 2013 was the amount charged in respect of the balance shown any balances offsetting this in the 
group’s pooling arrangements were credited at a similar rate to the entities concerned
f  	 liquidit y 	 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 at 30 september 2014 principally comprised the following 
main sources of longterm debt funding
• the external bank revolving credit facilities totalling £1225m 2013 £1120m plus bonding and letter of credit facilities totalling £175m 
2013 £185m which all mature in june 2018 from these facilities £120m has been utilised for letter of credit purposes at 30 september 2014 
2013 £136m 
• a £400m convertible bond due april 2017 issued in april 2010 and
• a £150m bank syndicated facility which matures in april 2016 and which is only available in the event of a requirement to redeem the group’s 
2017 convertible bond
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
the board remains satisfied with the group’s funding and liquidity position this is the case in the scenario that the merger with tui ag does not 
proceed which is considered unlikely and the scenario once the merger is completed as tui ag has agreed to provide facilities to enable based 
on current expectations tui travel plc and its subsidiaries to continue for the forseeable future 
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 the 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 1bii
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 29 165 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
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
30 september 2014 
carrying 
amount
£m
contractual
cash flows
£m
within
one year
£m
between 
one and
two years 
£m
between
two and
five years
£m
more than
five years
£m
n o n  d e r i v at i ve 	 fi n a n c i a l 	 li a b i li t i e s
convertible bonds 373 460 20 20 420 –
secured bank loans 59 71 7 12 17 35
unsecured bank loans 1 1 1 – – –
finance leases 382 469 48 40 108 273
loan notes 1 1 – 1 – –
other financial liabilities 47 47 46 1 – –
trade and other payables 2710 2710 2678 30 2 –
de r i v a t i v e 	 fi n an c i al 	 l i ab i l i t ie s
contracts used for hedging 201 207 189 17 1 –
t otal 3774 3966 2989 121 548 308
30 september 2013 
carrying 
amount
£m
contractual
cash flows
£m
within
one year
£m
between 
one and
two years 
£m
between
two and
five years
£m
more than
five years
£m
n o n  d e r i v at i ve 	 fi n a n c i a l 	 li a b i li t i e s
convertible bonds 697 860 41 380 439 –
bank overdrafts 491 491 491 – – –
secured bank loans 95 115 37 10 25 43
unsecured bank loans 3 3 2 1 – –
finance leases 275 358 33 36 85 204
loan notes 1 1 – – 1 –
other financial liabilities 44 44 44 – – –
trade and other payables 2733 2733 2687 46 – –
de r i v a t i v e 	 fi n an c i al 	 l i ab i l i t ie s
contracts used for hedging 173 168 149 19 – –
total 4512 4773 3484 492 550 247
the timing reflected in the tables above is based on the first date that the group can be contractually required to settle the liability in respect of 
revolving credit facilities the timing of repayments will vary trade and other payables exclude customers’ monies received in advance deferred 
income contingent consideration and other noncontractual payables
debts falling due for repayment after five years with an aggregate value at 30 september 2014 of £405m 2013 £297m comprise secured bank 
loans of £53m 2013 £57m and finance leases of £352m 2013 £240m all of which are payable in either monthly quarterly or sixmonthly 
instalments these are secured on the aircraft cruise ships and buildings to which the borrowings relate
at 30 september 2014 the group had available undrawn committed borrowing facilities of £1301m 2013 £1192m 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 both years
undrawn facilities are analysed as follows
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
expiring
in more than one year but less than five years 1301 1192
 g 	 analysis 	 of 	 total 	 financial 	 asset s 	 and 	 financial 	 liabilities
the tables below set out the group’s ias 39 classification for each of its financial assets and liabilities
at 30 september 2014
financial 
assets and 
liabilities at fair 
value through 
profit and loss
£m
derivative
financial
instruments
used in hedge
accounting
£m
available for sale
financial assets
£m
loans and
receivables
£m
financial
liabilities at
amortised cost
£m
total
carrying value
£m
cash and cash equivalents – – – 1374 – 1374
borrowings due within one year 43 – – – 46 89
borrowings due after more than one year – – – – 774 774
derivative assets 17 143 – – – 160
derivative liabilities 42 159 – – – 201
other financial assets 5 – 16 666 – 687
other financial liabilities 4 – – – 2706 2710
t otal 67 16 16 2040 3526 1553 166 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 6 	 fi na n ci a l 	 i nstru m e n ts 	continued
at 30 september 2013
financial 
assets and 
liabilities at fair 
value through 
profit and loss
£m
derivative
financial
instruments
used in hedge
accounting
£m
available for sale
financial assets
£m
loans and
receivables
£m
financial
liabilities at
amortised cost
£m
total
carrying value
£m
cash and cash equivalents – – – 1753 – 1753
borrowings due within one year 41 – – – 553 594
borrowings due after more than one year – – – – 1012 1012
derivative assets 2 42 – – – 44
derivative liabilities 26 147 – – – 173
other financial assets 35 – 18 628 – 681
other financial liabilities 7 – – – 2726 2733
t otal 37 105 18 2381 4291 2034
other financial assets comprise trade receivables other receivables and other investments which are receivable within and after more than 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 mainly comprising convertible bonds bank loans and finance lease liabilities 
is disclosed in note 5
further information in relation to changes in other financial assets at fair value through profit and loss are shown in note 12
o f f set ti ng
the table below shows the group’s financial assets and liabilities that are subject to offset in the group’s balance sheet and the impact of enforceable 
master netting or similar agreements contracts for derivative financial instruments are governed by standardised master netting agreements 
creating a right of setoff only if certain specified future events occur as this conditional right to setoff is not enforceable in the ordinary course 
of business the derivative financial assets and liabilities are shown on a gross basis in the consolidated balance sheet at the reporting dates
gross amounts of 
recognised
 financial assets
liabilities
£m
gross amounts of 
recognised
 financial liabilities
assets set off
£m
net amounts of 
financial assets
liabilities presented 
in the balance sheet
£m
related amounts not 
set off in the balance 
sheet
£m
net amount
£m
f in an c i al 	 a s s e t s 	 a s 	 at 	 30 	 s e p t e mb e r 	 201 4
derivative financial assets 160 – 160 125 35
trade receivables 648 – 648 – 648
trade and listed investments 21 – 21 – 21
cash and cash equivalents 4155 2781 1374 – 1374
other investments 18 – 18 – 18
t otal 5002 2781 2221 125 2096
f in an c i al 	 li ab i li t ie s 	 a s 	 at 	 30 	 s e p t e mb e r 	 20 1 4
derivative financial liabilities 201 – 201 125 76
interest bearing loans and borrowings 3597 2781 816 – 816
other financial liabilities 47 – 47 – 47
trade and other payables 2710 – 2710 – 2710
t otal 6555 2781 3774 125 3649
n e t 1553 – 1553 – 1553 167 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
gross amounts of 
recognised
 financial assets
liabilities
£m
gross amounts of 
recognised
 financial liabilities
assets set off
£m
net amounts of 
financial assets
liabilities presented 
in the balance sheet
£m
related amounts not 
set off in the balance 
sheet
£m
net amount
£m
f in an c i al 	 a s s e t s 	 a s 	 at 	 30 	 s e p t e mb e r 	 201 3
derivative financial assets 44 – 44 44 –
trade receivables 622 – 622 – 622
trade and listed investments 23 – 23 – 23
cash and cash equivalents 4077 2324 1753 – 1753
other investments 36 – 36 – 36
t otal 4802 2324 2478 44 2434
f in an c i al 	 li ab i li t ie s 	 a s 	 at 	 30 	 s e p t e mb e r 	 20 1 3
derivative financial liabilities 173 – 173 44 129
interest bearing loans and borrowings 3886 2324 1562 – 1562
other financial liabilities 44 – 44 – 44
trade and other payables 2733 – 2733 – 2733
t otal 6836 2324 4512 44 4468
n e t 2034 – 2034 – 2034
cash and cash equivalents and bank overdrafts include amounts set off of £2781m 2013 £2324m as part of a master netting agreement with 
citibank international limited balances held within this balance are notionally pooled
h  	 f a ir 	 value 	 of 	 financial 	 asset s 	 and 	 financial 	 liabilities
the fair values of financial assets and liabilities together with carrying amounts shown in the consolidated balance sheet at 30 september 2014 
and at 30 september 2013 are as follows
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
c a r r y i n g
a mo un t
£m
fa i r
v al u e
£m
carrying
amount
£m
fair
value
£m
c a s h 	 an d 	 c a s h 	 e q ui v ale n t s 1374 1374 1753 1753
b o r row ing s
convertible bonds 373 476 697 883
bank loans and overdrafts 60 60 589 589
loan notes 1 1 1 1
finance lease liabilities 382 381 275 280
other financial liabilities 47 47 44 44
de r i v at i ve 	 fi n an c i al 	 in s t r ume n t s
forward exchange contracts used for hedging
 – assets 159 159 36 36
 – liabilities 137 137 148 148
commodity contracts used for hedging
 – assets 1 1 8 8
 – liabilities 63 63 25 25
interest rate swap used for hedging
– liability 1 1 – –
o t h e r 	 fi n an c i al 	 a s s e t s
trade and other receivables 648 648 622 622
trade and listed investments 21 21 23 23
other investments 18 18 36 36
o t h e r 	 fi n an c i al 	 li ab i li t ie s
current trade and other payables 2678 2678 2687 2687
noncurrent trade and other payables 32 32 46 46
t otal 1553 1655 2034 2225
the basis for fair value measurement of financial assets and liabilities is set out in note 1w
f air 	 value 	 measur ement s
ifrs 13 requires enhanced disclosures about fair value measurements of financial instruments through the use of a three level 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 168 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 6 	 fi na n ci a l 	 i nstru m e n ts 	continued
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
the group’s financial assets and liabilities excluding convertible bonds and finance lease liabilities measured at fair value at 30 september 2014 are 
categorised as follows
at 30 september 2014 
level 1
£m
level 2
£m
level 3 
£m
total
fair value
£m
as set s
trade listed and other investments 10 – 11 21
derivative financial instruments – 160 – 160
total assets 10 160 11 181
l i ab i l i t ie s
derivative financial instruments – 201 – 201
other financial liabilities – – 50 50
total liabilities – 201 50 251
t otal 10 41 39 70
at 30 september 2013 
level 1
£m
level 2
£m
level 3 
£m
total
fair value
£m
as set s
trade listed and other investments 11 – 42 53
derivative financial instruments – 44 – 44
total assets 11 44 42 97
l i ab i l i t ie s
derivative financial instruments – 173 – 173
other financial liabilities – – 48 48
total liabilities – 173 48 221
t otal 11 129 6 124
the movements in level 3 instruments measured on a recurring basis for the year ended 30 september 2014 are as follows
trade
and other
investments
£m
other
financial
liabilities
£m
total
level 3
instruments
£m
at 1 october 2012 36 41 5
cash settlement of contingent consideration – 2 2
purchase of trade investment 1 – 1
increase in value of trade investment 5 – 5
charged to income statement – 6 6
foreign exchange recognised in other comprehensive income – 3 3
at 1 october 2013 42 48 6
cash settlement of contingent consideration – 3 3
sale of trade investment 30 – 30
recognised in income statement 1 5 6
a t 	 30 	 s e p t e m b e r 	 201 4 11 50 39
t rade 	 and 	 listed 	 in v estment s
as at 30 september 2014 £11m 2013 £42m of trade and other investments were categorised as level 3 instruments these consist of the group’s 
£5m 2013 £35m investment in the airline group limited and other trade investments in the equity of unlisted companies of £6m 2013 £7m 
in the year ended 30 september 2013 of the £35m in respect of the airline group limited £30m was disclosed as an other investment in current 
assets note 18 and £5m was disclosed as an other investment in noncurrent assets note 12 
the group’s investment in the airline group limited is valued using the offer received during 2013 for the majority of the investment the disposal 
of which occurred in march 2014 the level 1 trade investment mainly consists of the group’s holding in air berlin plc see note 12 for further 
details of this investment
derivativ e 	 asset s 	 and 	 liabilities
derivatives are valued in the market using discounted cash flow techniques these techniques incorporate level 2 inputs 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 volatility discount rate and taking credit risk into account as significant inputs to the valuation are observable in external 
markets these instruments are categorised as level 2 in the hierarchy 169 tui travel p l c annu al repo rt  accounts 2014
 
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other 	 financial 	 liabilities
the principal element of the put options to acquire the remaining equity stake in l’tur tourismus ag £38m 2013 £38m is classified as an other 
financial liability with changes in fair value included in operating profit they have been valued using the minimum price stipulated in the contracts 
plus adjustments based on estimated operating results in the three years preceding any exercise of the options contingent consideration of £4m 
2013 £7m is also measured at fair value based on the relevant contracts 
a new put option recognised in the year is to the sole remaining partner of gebeco gesellschaft fur internationale begegnung und cooperation 
mbh  co kg a german registered partnership £5m 2013 £nil this has been valued using the price stipulated in the contract based upon 
the two years’ profit before tax plus a portion of retained earnings preceding any exercise of the option
there are no reasonably possible changes in assumptions which would materially alter the value of these level 3 financial instruments
c o n v e r ti b le 	 b o n ds
the fair value of the convertible bonds for disclosure purposes was £476m 2013 £883m and is derived from quoted market prices from bloomberg 
as such the convertible bonds are categorised as level 1 financial instruments 
finance 	 leases
the fair value of finance leases for disclosure purposes was £381m 2013 £280m and is calculated based on the present value of future principal 
and interest cash flows discounted at the market rate of interest at the reporting date this market rate of interest for finance leases is determined 
by reference to similar lease agreements these finance leases are categorised as level 3 financial instruments 
t ransfers 	 bet w een 	 le v els 	 of 	 financial 	 instrument s
the group transfers financial instruments between different levels in the fair value hierarchy when as a result of an event or change in circumstances 
the valuation methodology applied in determining their fair values alters in such a way that it meets the definition of a different level there were 
no transfers between the level 1 level 2 and level 3 fair value measurement categories in the period
i  	 derivativ e 	 instrument s
at the balance sheet date the fair value of the group’s derivative financial assets and liabilities was as follows
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
a s se t s
fa i r 	 v a l u e
£m
l i a b i li t ie s
fa i r 	 v a l u e
£m
t ot al
fa i r 	 v a l u e
£m
assets
fair value
£m
liabilities
fair value
£m
total
fair value
£m
c a s h 	 flow 	 h e dge s
foreign exchange forwards 142 96 46 34 122 88
commodity options – – – – 1 1
commodity swaps 1 63 62 8 24 16
143 159 16 42 147 105
de r i v at i ve s 	 no t 	 h e dge 	 ac c ou n t e d
interest rate swap – 1 1 – – –
foreign exchange forwards 17 41 24 2 26 24
t otal 160 201 41 44 173 129
analysed as
current 130 186 56 41 147 106
noncurrent 30 15 15 3 26 23
t otal 160 201 41 44 173 129
gainslosses on derivatives not hedge accounted have been recognised within net financial expenses within the consolidated income statement 
the gain recognised in the year ended 30 september 2014 of £73m 2013 loss of £114m has been offset by an equal and opposite loss 2013 gain 
due to the revaluation of nonfunctional currency balance sheet exposures
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 2014 and have been shown net for each instrument
p r o j e c t e d 	 c a s h 	 fl o w s
30 september 2014
l e s s 	 t h a n
o n e 	 y e a r
£m
b e t we e n
o n e 	 a n d
t w o 	 y e a r s
£m
b e t we e n
t w o 	 a n d	
fi v e 	 y e a r s
£m
o v e r
fi v e 	 y e a r s
£m
de r i v at i ve 	 fi n an c i al 	 a s s e t s
foreign exchange forwards 126 29 2 –
126 29 2 –
de r i v a t i v e 	 fi n an c i al 	 l i ab i l i t ie s
foreign exchange forwards 136 3 – –
commodity swaps 53 14 1 –
189 17 1 –
t otal 63 12 1 – 170 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 6 	 fi na n ci a l 	 i nstru m e n ts 	continued
p r o j e c t e d 	 c a s h 	 fl o w s
30 september 2013
l e s s 	 t h a n
o n e 	 y e a r
£m
b e t we e n
o n e 	 a n d
t w o 	 y e a r s
£m
b e t we e n
t w o 	 a n d	
fi v e 	 y e a r s
£m
o v e r
fi v e 	 y e a r s
£m
de r i v at i ve 	 fi n an c i al 	 a s s e t s
foreign exchange forwards 47 3 – –
commodity swaps 11 5 1 –
58 8 1 –
de r i v a t i v e 	 fi n an c i al 	 l i ab i l i t ie s
foreign exchange forwards 142 19 – –
commodity swaps 7 – – –
149 19 – –
t otal 91 11 1 –
i ne f f e c t i v e ne s s
ineffectiveness in respect of cash flow hedges has been recognised in the consolidated income statement for the year ineffectiveness for the year 
ended 30 september 2014 comprised a charge of £1m 2013 £3m relating to fuel hedging and this is included within cost of sales in the consolidated 
income statement in respect of foreign exchange hedging ineffectiveness this comprised a gain of £1m 2013 £1m which is included in cost of sales 
in the consolidated income statement
 j 	 amount s 	 r eco gnised 	 in 	 equit y
the following amounts have been recognised in equity during the year
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
h e dg ing 	 re s e r ve
effective portion of changes in fair value of cash flow hedging instruments 28 76
fair value of cash flow hedges recycled to the consolidated income statement 113 5
85 81
the fair value loss of £113m on cash flow hedges recycled to the consolidated income statement during 2014 arose primarily due to sterling 
strengthening against the euro and the us dollar as well as the euro strengthening against the us dollar when comparing the average achieved 
hedge rate and the average spot rate at maturity of the derivative contracts this spread was larger in 2014 compared to 2013 the fair value gain 
of £5m on cash flow hedges recycled to the consolidated income statement during 2013 arose primarily due to sterling weakening against the 
euro and the us dollar when comparing the average achieved hedge rate and the average spot rate at maturity of the derivative contracts
deferred tax on the above items recognised outside of the consolidated income statement is shown in note 8iii the fair value of cash flow hedges 
recycled to the consolidated income statement is recognised within cost of sales
k 	 sensitivit y 	 analysis
this sensitivity analysis is for illustrative purposes only and should not be considered a projection of likely future events and gains or losses
this 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 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 these being considered to be reasonably possible 
changes to interest rates sterling rates and fuel prices
i nter est 	 rate 	 risk
under the above assumptions a 100 basis points increase in interest rates would result in a less than £1m increase in interest expense in the 
consolidated income statement and equity 2013 increase of less than £1m a 100 basis points reduction in interest rates is not considered 
reasonably possible
c urr enc y 	 risk
the group hedges substantially all of its foreign currency exposures not denominated in the functional currency of individual group companies 
this mitigates the sensitivity impact of fluctuations in the underlying exchange rates 171 tui travel p l c annu al repo rt  accounts 2014
 
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shareholder information
the vast majority of hedging instruments used by the group qualify for hedge accounting with the fair value movements booked to equity however 
the group uses structured foreign exchange instruments to hedge a small proportion of its euro and us dollar requirements as these contracts do 
not qualify for hedge accounting the fair value movements are recognised in the consolidated income statement a 10 strengthening or weakening 
of sterling against the euro and us dollar on these instruments would have reduced profit before tax by £5m 2013 £21m or increased it by £5m 
2013 £21m respectively
similarly under the above assumptions a 10 strengthening or weakening of sterling against all principal exchange rates the group is exposed to 
would have reduced profit before tax by £20m 2013 reduced profit before tax by £16m or increased it by £25m 2013 increased profit before 
tax by £18m respectively equity before tax would have decreased by £210m 2013 £226m or increased by £257m 2013 £276m respectively 
f uel 	 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 £88m 
2013 £97m or decrease by £88m 2013 £96m respectively
27  	 m o v e m e n ts 	 i n 	 cash 	 a n d 	 n et 	 d e bt 	 a n d 	 cash 	 c o n v e rs i o n
 a  	 mo v ement s 	 in 	 cash 	 and 	 net 	 debt
cash
and cash 
equivalents
£m
convertible
bonds
£m
amounts due
to related
parties
£m
bank loans 
overdrafts
£m
loan
notes
£m
finance
leases
£m
other
financial
liabilities
£m
t ot al
£m
restricted 
cash 
£m
a v a il a b le 	 ne t	
 d e bt   c ash
£m
at 1 october 2012 830 675 10 23 1 186 43 108	 34 142
cash movement 390 – 1 41 – 26 2 378 111 267
noncash movement 491 22 9 524 – 113 1 160 – 160
foreign exchange 42 – – 1 – 2 2 37 – 37
at 30 september 2013 1753 697 – 589 1 275 44 147 145 2
cash movement 198 – – 36 – 23 4 253 2 251
noncash movement 491 324 – 491 – 132 2 190 – 190
foreign exchange 86 – – 2 – 2 3 79 7 72
a t 	 30 	 s e p t e m b e r 	 201 4 1374 373 – 60 1 382 47 511 140 371
as set out in note 17 cash and cash equivalents included £140m 2013 £145m of restricted cash
the 2014 noncash movement of £324m 2013 £22m in convertible bonds relates to the net amount of the conversion of £348m at par value
of the 2014 £350m bond issued october 2009 converting during the year and accretion of the equity portion of the convertible bonds up to the 
earlier of the conversion or 30 september 2014 
the 2014 noncash movement of £491m 2013 £491m between cash and cash equivalents and bank loans and overdrafts reflects the impact  
of specific overdraft balances being presented on a net basis previously shown gross other noncash movements in 2014 in finance leases 
predominantly relate to advances in respect of additions to aircraft within property plant and equipment
b  	c ash 	 con v ersi on 	 – 	n on ga ap 	 measur e
the group targets conversion of underlying profit before tax to free cash flow of at least 70 ‘underlying’ as a measure of operating profit is defined 
in note 1bii ‘free cash flow’ is defined as the movement in available cash net of debt during the year before restricted cash dividend payments 
acquisitions and business disposal proceeds net of predelivery payments for aircraft and acquisitions of shares for sharebased payments 
calculations for the current and prior year are
note
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
restated
£m
underlying operating profit consolidated income statement 612 589
net financial expense 5 137 128
un d e r l y ing 	 p ro fi t 	 b e fore 	 t a x 	 475 461
movement in available cash net of debt 27a 251 267
add
dividends paid to ordinary and noncontrolling interests consolidated statement of cash flows 153 132
acquisition of subsidiaries net of cash acquired consolidated statement of cash flows 21 10
investment in joint ventures associates and other investments 27 14
net predelivery payments for aircraft 11 18 4
proceeds from other investments consolidated statement of cash flows 31 –
f re e 	 c a s h 	 flow 403 427
c a s h 	 c onve r s ion 85 93
the figures for 2013 have been restated following the adoption of ias 19 revised 172 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
2 8 	 o p e ra ti n g 	 l e ase 	 c o m m i tm e n ts
total group obligations under noncancellable operating lease contracts are payable as follows
l a n d 	 a n d
b ui l din g s
3 0 	 s e p t em b er
2014
£m
a ir c r af t  	 s hip s 
y a c h t s 	 a n d
e q u i p me n t
3 0 	 s e p t em b er
2014
£m
land and
buildings
30 september
2013
£m
aircraft ships
yachts and
equipment
30 september
2013
£m
t o t al 	 c om mi t me n t s 	 u n de r 	 non  c an c e ll ab l e 	 op e r at ing 	 l e a s e s 	 f alling 	 d ue 
within one year 258 367 265 383
between one and five years 584 974 527 770
later than five years 222 454 226 427
t otal 1064 1795 1018 1580
operating lease commitments in respect of land and buildings comprise commitments in respect of the group’s retail estate its hotel estate 
including those commitments that are required to be disclosed as leases under ifric 4 and its office premises
the future commitment under the group’s floating rate aircraft operating leases at 30 september 2014 was £61m 2013 £80m and is included 
within the table above
in total the group operates 119 aircraft on operating leases at 30 september 2014 2013 123 aircraft a minority of which contain purchase options 
yachts are held on operating leases in tui marine as part of the group’s sunsail and the moorings fleets whilst cruise ships are held on operating 
leases in the uk  ireland source market
2 9  	c a p i ta l 	 c o m m i tm e n ts
the group’s capital commitments are as follows
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
c on t r ac t e d 	 b u t 	 no t 	 p rov i de d 	 for 
intangible assets 6 3
t otal 6 3
in addition to the above items at the year end the group had contracted to purchase 72 2013 79 aircraft with initial deliveries to start in the first 
quarter of the financial year 201415 at list price the total order value was us9135m 2013 us9772m before discounts
the group intends to finance 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 share of the capital commitments of its joint ventures and associates at 30 september 2014 was £28m 2013 £13m
30  	 c on tin ge n t 	 li a b i li ti es
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 the directors consider that adequate provision has been made for all known liabilities see note 8 for more details on 
contingent tax exposures and note 22 for details on provisions
3 1  	 r e la t e d 	 pa r ty 	 tra nsacti o ns
apart from with its own subsidiaries which are included in the consolidated financial statements the group 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 either purchased or delivered services to companies in the group
c o n v e r ti b le 	 b o n d
in april 2010 the company issued a £400m fixed rate 49 convertible bond of which antium finance ltd an independent special purpose company 
subscribed for 50 tui ag entered into a forward purchase agreement with antium finance ltd for these £200m convertible bonds in order 
to prevent dilution of its majority shareholding tui ag is entitled to receive the interest coupon on these bonds and to repurchase these bonds 
by july 2016 at the latest the latest repurchase date was extended from july 2014 to july 2016 through a new contractual arrangement dated 
10 october 2013 173 tui travel p l c annu al repo rt  accounts 2014
 
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t rademark 	 licence 	 agr eement
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 three year period total licence fees charged for the year ended 30 september 2014 were £3m 2013 £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
h ote l 	 f ra me w o r k 	 agr e e me n t
tui deutschland has signed an exclusivity agreement with tui ag’s robinson hotel portfolio under the terms of the agreement tui deutschland paid 
€10m in the financial year ending 30 september 2013 €12m in the financial year ending 30 september 2014 and will pay €12m per year thereafter 
the contract also contains performance related elements linked to occupancy rates under which either more can be paid or refunds received 
details of transactions with related parties during the year and balances outstanding at the balance sheet date are set out in the tables below
income expenses including interest
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
re l at e d 	 p ar t y
ultimate parent tui ag 4 8 4 4
hotel and resort subsidiaries of tui ag 1 1 312 289
other subsidiaries of tui ag 15 13 10 9
joint ventures and associates of tui ag 18 10 125 85
joint ventures of the group 15 41 151 132
associates of the group 21 15 17 14
t otal 74 88 619 533
income earned from tui ag includes recharges of administrative costs of £4m 2013 £4m the prior year also included airline revenue of £4m 
income earned from hotel and resort subsidiaries of tui ag joint ventures and associates of tui ag and joint ventures of the group includes 
accommodation and destination services provided by the group to the related entities the income relating to the group’s joint ventures includes 
£13m 2013 £32m from togebi holdings limited the group’s joint venture in russia and its subsidiaries 
income received from associates of the group principally represents aircraft sublease income from sunwing as detailed in note 7
expenses paid to tui ag includes interest expense of £1m 2013 £1m the remaining expenses paid to tui ag of £3m 2013 £3m relates 
to aircraft lease costs and licence fees 
in addition to the amounts disclosed above £10m 2013 £10m of the interest payable in the year in respect of the group’s convertible bonds  
has been paid to antium finance ltd a special purpose company which purchased £200m of the group’s 49 convertible bond tui ag remains 
entitled to receive the interest on these bonds from antium finance ltd 
expenses relating to hotel and resort subsidiaries of tui ag joint ventures and associates of tui ag and joint ventures and associates of the group 
relate to travel related services primarily made up of accommodation and destination services costs
r elated 	 par t y 	 r eceivables
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
c u r r en t
a s se t s
£m
n on  c u r r e n t 	
a s se t s
£m
t ot al
a s se t s
£m
current
assets
£m
noncurrent
assets
£m
total
assets
£m
re l at e d 	 p ar t y 	 	 	 
ultimate parent tui ag 3 – 3 2 – 2
subsidiaries of tui ag – – – 1 – 1
joint ventures and associates of tui ag 3 – 3 6 1 7
joint ventures of the group 42 30 72 43 35 78
associates of the group 8 – 8 3 – 3
t otal 56 30 86 55 36 91 174 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
3 1  	 r e la t e d 	 pa r ty 	 tra nsacti o ns 	continued
receivables due from related parties are reported in note 16 amounts owed from tui ag and its subsidiaries of £3m 2013 £3m are in respect 
of current trade and other receivables 
amounts owed by joint ventures of the group that are due after more than one year of £30m 2013 £35m principally comprises hotel prepayments 
made to the atlantica leisure group of companies in the prior year the balance also included a loan of us12m equating to £8m from tui travel 
holdings limited a direct subsidiary of the company to togebi holdings limited this loan has been provided for within the £28m 2013 £nil 
impairment recognised against loans made to our joint venture operating in the russian and ukrainian source markets given the ongoing challenging 
trading conditions in that environment also refer to note 12 
amounts owed by joint ventures that are due within one year of £42m 2013 £43m include accommodation costs due from togebi holdings limited 
and its subsidiaries of £17m 2013 £15m which were noninterest bearing balances the remaining balance due within one year includes current 
hotel prepayments made to the atlantica leisure group of companies
r elated 	 par t y 	 pa yables
3 0 	 s e p t e m b e r 	 2 01 4 30 september 2013
c u r r en t
li a b i li t i e s
£m
n on  c u r r e n t 	
li a b i li t i e s
£m
t ot al
li a b i li t i e s
£m
current
liabilities
£m
noncurrent
liabilities
£m
total
liabilities
£m
re l at e d 	 p ar t y 	 	 	
ultimate parent tui ag 6 – 6 7 – 7
hotel and resort subsidiaries of tui ag 52 1 53 48 – 48
joint ventures and associates of tui ag 26 – 26 11 – 11
joint ventures of the group 49 – 49 26 1 27
associates of the group 11 – 11 5 – 5
t otal 144 1 145 97 1 98
payables outstanding with related parties are reported in notes 21 and 23 an analysis of current amounts owed to related parties is as follows
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
amounts owed to related parties note 21 134 97
current provisions notes 12 and 22 10 –
t o t al 	 c u r re n t 	 li ab i li t ie s 	 owe d 	 t o 	 re l at e d 	 p ar t ie s 144 97
amounts payable to hotel and resort subsidiaries of tui ag and joint ventures and associates of tui ag are in respect of current trade payables 
primarily associated with accommodation and destination services costs the payables to joint ventures of the group also includes £10m 2013 £nil 
relating to the constructive obligation at 30 september 2014 for additional funding loans to be paid to togebi holdings limited further details 
of these amounts which were loaned after the year end are disclosed in note 12 and are included within the current other provision balance in 
note 22
the group’s share of bank guarantees given by the company for bank loans drawn by togebi holdings limited and its subsidiaries totalled £12m 
at 30 september 2014 2013 £12m no payable has been recognised at 30 september 2014 2013 £nil as no cash outflow is currently expected 
under the terms of these guarantees
the above balances exclude £200m nominal value of the group’s convertible bonds 49 april 2017 which have been sold to antium finance ltd 
tui ag is entitled to receive the interest coupon on these bonds and to repurchase these bonds by july 2016 at the latest further details of the 
convertible bonds are given in note 20 
details on interest rate and liquidity risks in respect of balances with related parties are included in notes 26e and 26f respectively
k e y 	 ma na ge me n t 	 c o m p e ns ati o n	
details of directors’ remuneration are given in the remuneration report in accordance with ias 24 key management functions within the group 
the gmb and the directors of the company were related parties whose remuneration has to be listed separately the compensation paid in respect 
of key management personnel including directors was as follows
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
shortterm employee benefits 11 9
postemployment benefits 1 1
sharebased payments 11 10
t otal 23 20 175 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
3 2 	 p r i n ci pa l 	 o p e ra ti n g 	 su bsi d i a r i es
other than as stated below all of the principal operating subsidiaries listed in the following table 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 a full list will be included 
in the company’s next annual return to companies house 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 – uk  ireland to reflect its principal operations but the company 
also includes certain uk specialist  activity businesses at 30 september 2014
subsidiary country of incorporation nature of business
m ain s t re am 	 s e c t or
m ain st re am – uk 	  	i re l an d
falcon leisure group overseas limited united kingdom tour operator
thomson airways limited united kingdom airline
tui uk limited united kingdom tour operator
tui uk retail limited united kingdom travel agent
m ain st re am – g e r m a ny
berge  meer touristik gmbh germany tour operator
gebeco gesellschaft fur internationale begegnung und cooperation mbh  co kg germany tour operator
l’tur tourismus ag 70 germany tour operator
tui deutschland gmbh germany tour operator
tui 4 u gmbh germany tour operator
tuifly vermarktungs gmbh germany tour operator
tuifly gmbh germany airline
m ain st re am 	– n o r di c s
fritidsresor ab sweden tour operator
oy finnmatkat ab finland tour operator 
star tour as denmark tour operator
startourstjernereiser as norway tour operator
tuifly nordic ab sweden airline
m ain st re am 	– 	 fr anc e
corsair sa france airline
tui france sas france tour operator
m ain st re am – 	 o t h e r
jetair nv belgium tour operator
tt hotels turkey otel hizmetleri turizm ve ticaret as turkey hotel operator
tui suisse ag switzerland tour operator
tui airlines belgium nv belgium airline
tui airlines nederland bv netherlands airline
tui austria holding gmbh austria tour operator
tui aviation gmbh germany leasing company
tui österreich gmbh austria tour operator
tui nederland nv netherlands tour operator
tui poland sp zoo poland tour operator
tui travel aviation finance limited united kingdom leasing company
a c c o m mo d at io n 	  	 d e s t in at io n s 	 s e c t o r
lima tours sac peru tour operator
asiarooms pte ltd singapore online travel agent
beds on line slu spain accommodation wholesaler
blue travel partner services sa 99 dominican republic inbound services
club turavia sa de cv mexico accommodation wholesaler
hotelbeds dominicana sa dominican republic accommodation wholesaler
hotelbeds product slu spain accommodation wholesaler
hotelbeds slu spain accommodation wholesaler
hotelbeds spain slu spain accommodation wholesaler
hotelbeds uk limited united kingdom accommodation wholesaler
hotelbeds usa inc usa accommodation wholesaler
intercruises shoreside  port services inc usa inbound services
intercruises shoreside  port services slu spain inbound services
late rooms limited united kingdom online travel agent
pacific world singapore pte limited singapore inbound services
transfaragencia de viagens e turismo unipessoal lda portugal inbound services
tantur turizm seyahat as turkey tour operator
tui hellas travel tourism and airline ae greece inbound services
tui portugalagencia de viagens e turismo sa portugal inbound services
tui españa turismo sa spain inbound services
ultramar express transport sa spain inbound services 176 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
3 2 	 p r i n ci pa l 	 o p e ra ti n g 	 su bsi d i a r i es 	continued
subsidiary country nature of business
s p e c i ali s t 	  	 a c t i v i t y 	 s e c t or
crown travel limited united kingdom tour operator
experience english limited united kingdom language teaching
exodus travels limited 60 united kingdom tour operator
fanfirm pty limited australia tour operator
gullivers sports travel limited united kingdom tour operator
hayes  jarvis travel limited united kingdom tour operator
headwater holidays limited 60 united kingdom tour operator
intrepid travel pty ltd 60 australia tour operator
mariner international travel inc usa tour operator
peregrine adventures pty ltd 60 australia tour operator
porter and haylett limited united kingdom boat owning company
quark expeditions inc usa tour operator
ski bound limited united kingdom tour operator
specialist holidays travel limited united kingdom tour operator
sunsail limited united kingdom tour operator
sunsail worldwide sailing limited united kingdom tour operator
tcs and starquest expeditions inc usa tour operator
the moorings limited british virgin islands tour operator
travcoa corporation usa tour operator
travel class limited united kingdom tour operator
travel turf inc usa tour operator
travelmood limited united kingdom tour operator
trek america travel limited 60 united kingdom tour operator
ttss limited united kingdom tour operator
williment travel group limited new zealand tour operator
world challenge expeditions limited united kingdom tour operator
world challenge expeditions pty limited australia tour operator
your man tours inc usa tour operator
zegrahm expeditions inc usa tour operator
 all subsidiaries except those marked with an asterisk are held indirectly by the company 
in addition to the ownership of the ordinary shares of the above listed principal operating subsidiaries the group also owns the following shares in 
these companies
principal operating subsidiary additional classes of shares
ski bound limited 167502 £1 ‘a’ ordinary shares
club turavia sa de cv 2317133 mxp1 variable shares
3 3  	e a r n i n gs 	 p e r 	 sha r e
the basic earnings 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 trust the diluted earnings 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 
comparative figures for the year ended 30 september 2013 have been restated to reflect the adoption of revised ias 19 ‘employee benefits’ 
further details are provided in note 1
basic and diluted earnings per share are as follows
e a r nin g s
2014
£m
	 w e i g h t e d
av e r a g e 	 n o 
o f 	 s h a r e s
2014	
mi lli on s
e a r nin g s
p e r 	 s h a r e
2014
pe n c e
earnings
2013
restated
£m
weighted
average no
of shares
2013
millions
earnings
per share
2013
restated
pence
basic earnings per share 183 1114 164 51 1110 46
effect of dilutive options – 8 – 8
dilu t e d 	 e ar ning s 	 p e r 	 s h are 183 1122 163 51 1118 46
for the statutory measure of diluted earnings per share the effects of including the convertible bonds are antidilutive in both years and therefore 
this is not included within the calculation  177 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
alternativ e 	 measur es 	 of 	 earnin gs 	 per 	 shar e
e a r nin g s
2014
£m
	 w e i g h t e d
av e r a g e 	 n o 
o f 	 s h a r e s
2014	
mi lli on s
e a r nin g s
p e r 	 s h a r e
2014
pe n c e
earnings
2013
restated
£m
weighted
average no
of shares
2013
millions
earnings
per share
2013
restated
pence
b a s ic 	 e ar ning s 	 p e r 	 s h are 183 1114 164 51 1110 46
acquisition related expenses and impairments 96 – 253 –
separately disclosed items 1 – 24 –
interest and tax on joint ventures  associates 18 – 15 –
separately disclosed tax item 26 – – –
tax base difference 2 – 9 –
b a s ic 	 un d e r l y ing 	 e ar ning s 	 p e r 	 s h are 324 1114 291 334 1110 301
effect of dilutive options – 8 – 8
effect of convertible bond net of tax 43 201 49 205
dilu t e d 	 un d e r l y ing 	 e ar ning s 	 p e r 	 s h are 367 1323 277 383 1323 289
as disclosed in note 8i following a review of the group’s deferred tax balances in the year the directors have written off £26m of deferred tax 
assets where there is no longer sufficient certainty of the timing of any benefits that might arise in the future these charges have been treated 
as separately disclosed tax items and have been excluded from the underlying earnings per share calculations
the tax base difference represents the remaining difference between the actual tax charge in the consolidated income statement £175m and the 
group’s underlying tax charge £147m as disclosed below after taking account of the separately disclosed tax item 
the dilutive effect of the convertible bonds is included solely to calculate diluted underlying earnings per share
r econciliati on 	 of 	 pr ofit 	 for 	 the 	 y ear 	 at tribut able 	 to 	 ordinar y 	 shar eholders 	
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
restated
£m
profit attributable to ordinary shareholders 183 51
result attributable to noncontrolling interests 4 3
pro fi t 	 for 	 t h e 	 ye ar 	 187 54
n o n  ga ap 	 me asu r e
r econc ili at ion 	 o f 	 underlying 	 oper at ing 	 pro fi t 	 t o 	 underly ing 	 e arning s
note
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
restated
£m
un d e r l y ing 	 op e r at ing 	 p ro fi t 612 589
net underlying financial expenses 5 137 128
un d e r l y ing 	 p ro fi t 	 b e fore 	 t a x 475 461
underlying tax charge at 31 2013 27 147 124
un d e r l y ing 	 p ro fi t 	 for 	 t h e 	 ye ar 328 337
attributable to ordinary shareholders 324 334
attributable to noncontrolling interests 4 3
un d e r l y ing 	 p ro fi t 	 for 	 t h e 	 ye ar 328 337
34 	c a p i ta l 	 ma na g e m e n t
the capital structure of the group consists of debt cash and cash equivalents and equity attributable to the parent company 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 board’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in order to provide 
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure this includes maintaining the level of 
dividends at a level commensurate with underlying operating profitability of the group and obtaining sufficient long and shortterm debt facilities 
that are appropriate for the seasonality of the business 
the group has a roadmap to deliver sustainable longterm value to shareholders with a return on invested capital roic greater than the group’s 
posttax weighted average cost of capital of 75 2013 81 this objective has been achieved again this year with a roic of 146 2013 148
the group is required to comply with external banking credit facility covenants with compliance being tested twice a year the group has complied 
with these covenants throughout the year and up to the date of signing these financial statements further information on these covenants is 
provided in note 1bv 178 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the consolidated financial statements
continued
34 	c a p i ta l 	 ma na g e m e n t 	continued
roic is defined as ‘underlying nopat’‘average invested capital’ underlying nopat is underlying net operating profit after tax charged at the 
effective annual rate ‘underlying’ as a measure of operating profit is defined in note 1bii as such roic is considered to be a nongaap measure 
of performance 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 net debt 
to reflect a seasonal average cash balance calculations for the current and prior years are
return on invested capital note
y e a r 	 e n d e d
3 0 	 s e p t em b er
2014
£m
year ended
30 september
2013
£m
underlying operating profit consolidated income statement 612 589
taxation at the underlying effective rate of 31 2013 27 190 159
un de r l y ing 	n op a t 422 430
net assets consolidated balance sheet 1644 1491
seasonal net debt adjustment 223 320
cumulative goodwill impairment charge 378 378
defined benefit pension net deficit 6c 699 661
i nve s t e d 	c ap i t al 2944 2850
average invested capital 2897 2903
ro i c 146 148
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 cash at the year end is in note 27a
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 2014 none of these requirements place any significant restriction on the group’s funding or operations
3 5  	 p o st 	 b a la n c e 	 sh e et 	 e v e n ts
on 15 september 2014 the independent directors of the company and the executive board vorstand of tui ag announced that they had 
reached agreement on the terms of a recommended allshare nilpremium merger of the company and tui ag the “merger” to be implemented 
by way of a scheme of arrangement of the company under part 26 of the companies act 2006 the “scheme” the scheme document in connection 
with the scheme containing the notice of the court meeting and notice of general meeting was published on 2 october 2014 the “scheme 
document” the scheme document contained a profit estimate for the year ended 30 september 2014 for the purposes of rule 28 of the uk code 
for takeovers and mergers which was stated as being full year underlying operating profit growth of at least 9 on a constant currency basis the 
actual results for the year ended 30 september 2014 are consistent with this profit estimate as full year operating profit growth has been 11 on 
a constant currency basis 
at the court meeting of the scheme shareholders and the general meeting of the tui travel shareholders both held on 28 october 2014 the 
resolutions contained in the notice of the court meeting and notice of general meeting were duly passed by the requisite majorities it is expected 
that the court hearing to sanction the scheme will be held on 10 december 2014 and that the scheme will be effective on 11 december 2014  
as set out in the scheme document
3 6 	 u l ti ma t e 	 pa r e n t 	 c o m pa ny
the directors consider the ultimate parent company to be tui ag a company registered in berlin and hanover federal republic of germany  
at 30 september 2014 tui ag was the beneficial owner of 5372 2013 5448 of the issued ordinary share capital of the company 
in addition a number of bonds are held indirectly by tui ag and if converted would give rise to 52309463 of new shares on a fully diluted basis 
if all bonds were converted tui ag’s shareholding would be 50 at 30 september 2014
tui ag prepares consolidated financial statements which include the results of the group tui ag is the parent undertaking of the smallest 
and largest group to consolidate these financial statements 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 tui ag situated at karlwiechertallee 4 30625 
hanover federal republic of germany tui travel p l c annu al repo rt  accounts 2014 179
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
other companies act 2006 reporting
under the companies act 2006 we are required to report to you if in 
our opinion certain disclosures of directors’ remuneration specified by 
law are not made we have no exceptions to report arising from this 
responsibility 
r espo nsi b i l iti es 	 f o r 	 th e 	 fina n cia l 	 sta tem ent s 	 a nd 	 th e 	 a u d it
our 	 r esponsibilities 	 and 	 those 	 of 	 the 	 dir ec tors
as explained more fully in the directors’ responsibilities statement 
the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the financial 
statements in accordance with applicable law and isas uk  ireland 
those standards require us to comply with the auditing practices 
board’s ethical standards for auditors 
this report including the opinions has been prepared for and only 
for the company’s members as a body in accordance with chapter 3  
of part 16 of the companies act 2006 and for no other purpose we do 
not in giving these opinions accept or assume responsibility for any 
other purpose or to any other person to whom this report is shown 
or into whose hands it may come save where expressly agreed by our 
prior consent in writing
what 	 an 	 audit 	 of 	 financial 	 statement s 	 in v olv es 	
we conducted our audit in accordance with isas uk  ireland an 
audit involves obtaining evidence about the amounts and disclosures  
in the financial statements sufficient to give reasonable assurance that 
the financial statements are free from material misstatement whether 
caused by fraud or error this includes an assessment of
• whether the accounting policies are appropriate to the company’s 
circumstances and have been consistently applied and adequately 
disclosed
• the reasonableness of significant accounting estimates made by 
the directors and 
• the overall presentation of the financial statements 
we primarily focus our work in these areas by assessing the directors’ 
judgements against available evidence forming our own judgements 
and evaluating the disclosures in the financial statements 
we test and examine information using sampling and other auditing 
techniques to the extent we consider necessary to provide a reasonable 
basis for us to draw conclusions we obtain audit evidence through 
testing the effectiveness of controls substantive procedures or a 
combination of both 
in addition we read all the financial and nonfinancial information in  
the annual report to identify material inconsistencies with the audited 
financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the 
knowledge acquired by us in the course of performing the audit 
if we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report
oth er 	 ma t ter
we have reported separately on the group financial statements  
of tui travel plc for the year ended 30 september 2014
r o ger 	 de 	 p e yr eca v e 	 seni or 	 statutor y 	 auditor 
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
london
3 december 2014
r epo r t 	 o n 	 th e 	 p a r ent 	c o m pa n y 	 fina n cia l 	 sta tem ent s
ou r 	 o p in i o n	
in our opinion tui travel plc’s company financial statements  
the ‘financial statements’
• give a true and fair view of the state of the company’s affairs  
as at 30 september 2014
• have been properly prepared in accordance with united kingdom 
generally accepted accounting practice and
• have been prepared in accordance with the requirements of the 
companies act 2006
what 	 w e 	 ha v e 	 a udited
tui travel plc’s financial statements comprise
• company balance sheet as at 30 september 2014 and
• the notes to the financial statements which include a summary of 
significant accounting policies and other explanatory information
certain required disclosures have been presented elsewhere in the 
annual report  accounts the ‘annual report’ rather than in the 
notes to the financial statements these are crossreferenced from  
the financial statements and are identified as audited
the financial reporting framework that has been applied in the 
preparation of the financial statements is applicable law and united 
kingdom accounting standards united kingdom generally accepted 
accounting practice
oth er 	 r equ i r ed 	 r epo r ti n g
c onsistenc y 	 of 	 other 	 informati on
companies act 2006 opinions
in our opinion the information given in the strategic report and  
the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements
isas uk  ireland reporting
under international standards on auditing uk and ireland ‘isas  
uk  ireland’ we are required to report to you if in our opinion 
information in the annual report is
• materially inconsistent with the information in the audited financial 
statements or
• apparently materially incorrect based on or materially inconsistent 
with our knowledge of the company acquired in the course of 
performing our audit or
• is otherwise misleading
we have no exceptions to report arising from this responsibility
adequa c y 	 of 	 a ccountin g 	 r ecords 	 and 	 informati on 	 and	
expla na ti o ns 	 r e c e iv e d
under the companies act 2006 we are required to report to you if 
in our opinion
• we have not received all the information and explanations we require 
for our audit or
• adequate accounting records have not been kept by the company 
or returns adequate for our audit have not been received from 
branches not visited by us or
• the financial statements and the part of the directors’ 
remuneration report to be audited are not in agreement with the 
accounting records and returns
we have no exceptions to report arising from this responsibility
dir e c to r s ’ 	 r e m u n e rati o n
directors’ remuneration report  companies act 2006 opinion
in our opinion the part of the directors‘ remuneration report to be 
audited has been properly prepared in accordance with the companies 
act 2006 
independent auditors’ report to the members of tui travel plc 180 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
note
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
f i xe d 	 a s s e t s
investments d 1343 1261 
c ur re n t 	 a s s e t s
debtors amounts falling due after more than one year e 43 44
debtors amounts falling due within one year f 151 183 
cash at bank 397 257 
591 484 
c re di t or s  	 amoun t s 	 f alling 	 du e 	 w i t hin 	 on e 	 ye ar g 95 129
n e t 	 c u r re n t 	 a s s e t s	 496 355 
t o t al 	 a s s e t s 	 l e s s 	 c u r re n t 	 li abi li t ie s 1839 1616 
c re di t or s  	 amoun t s 	 f alling 	 du e 	 af t e r 	 more 	 t h an 	 on e 	 ye ar h 645 973
prov i s ion 	 for 	 li ab i li t ie s i – 5
n e t 	 a s s e t s 1194 638
c api t al 	 an d 	 re s e r ve s
called up share capital k 122 112 
share premium account l 337 –
profit and loss account l 648 406
convertible bond reserve l 67 91
other reserves l 20 29
t o t al 	 s h are hol d e r s ’ 	 f un d s l 1194 638
the financial statements on pages 180 to 185 were approved by a duly authorised committee of the board of directors on 3 december 2014 and 
were signed on its behalf by
p eter 	 j 	 lon g	 	 	 	 	 	 	 	 	 william 	h	 w a g g ot t
chief executive         chief financial officer
company number 6072876
the notes on pages 181 to 185 form part of these financial statements
company balance sheet
at 30 september 2014 tui travel p l c annu al repo rt  accounts 2014 181
 
strategic report
 
business and financial review
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
the second condition is that where the instrument will or may be 
settled in the company’s own equity instruments it is either a 
nonderivative that includes no obligation to deliver a variable number 
of 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
c o n v e r ti b le 	 b o n ds
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 is measured at amortised 
cost and therefore increases 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 the related convertible bond based on the allocation 
of proceeds to the liability and derivative components when the 
instruments are first recognised derecognition occurs on the date on 
which an irrevocable conversion notice to convert the bond to ordinary 
shares is received from the bond holder the carrying value of the bond 
at the date of derecognition is extinguished and replaced by the nominal 
value of the ordinary share capital being issued with the balance being 
recognised in the share premium account notwithstanding that the 
relevant ordinary shares may not have been legally issued on the date 
of derecognition no gains or losses are recognised in the consolidated 
income statement on conversion
shar e 	 capit al 	 and 	 shar e 	 pr emium
ordinary shares are classified as equity within shareholders’ funds 
on derecognition of convertible bonds the carrying value of the bond 
is extinguished and replaced by the nominal value of the ordinary share 
capital being issued with the balance being recognised in the share 
premium account notwithstanding that the relevant ordinary shares may 
not have been legally issued on the date of derecognition no profits or 
losses are recognised in the profit and loss account on conversion
sh a r e  b as e d 	 pa y m e n t s
the company operates sharebased payment schemes for the 
employees of the company and its subsidiaries the fair value of shares 
awarded to employees is an employee expense and is borne by fellow 
group subsidiaries 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
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 tax inclusive credit being recognised directly in equity 
further information on the share schemes is provided in note 6d to 
the consolidated financial statements 
a  	 a c c o u n ti n g 	 p o l i ci es	
basis 	 of 	 pr eparati on
the following accounting policies have been applied consistently in 
dealing with items which are considered material in relation to the 
company’s financial statements the company’s financial statements 
are presented in the company’s presentation currency of sterling 
rounded to the nearest million
a cco u n ti n g 	 co n v en ti o n
the financial statements have been prepared in accordance with the 
companies act 2006 and 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 and the exemption from the requirement to 
prepare a cash flow statement under frs1 revised 1996 on the 
grounds that the cash flows are included within the consolidated  
cash flow statement the profit after tax included in the financial 
statements of the company determined in accordance with the act 
was £345m 2013 £270m 
f o r e i gn 	 cur r e nci es
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 
t axati o n
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
i n v estme n t s
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 on the date of receipt
i nt e r est be a ri n g 	 bo rr o wi n g s
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
c lassificati on 	 of 	 financial 	 instrument s 	 issued
financial instruments issued by the company are treated as equity 
only to the extent that they meet the following two conditions 
the first condition is that 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 
notes to the company’s financial statements 182 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
notes to the company’s financial statements  
continued
additions in the year of £268m includes the following increases in 
investments £204m increase in the cost of investment into tui france 
sas during the year for the purposes of recapitalising the group’s 
french business £24m increase in the cost of investment into tui 
travel overseas holdings limited for the purposes of providing capital 
to that company’s subsidiaries and indirect joint ventures £21m increase 
in the cost of investment in tui travel holdings limited for the 
purpose of effecting an intragroup entity reorganisation and £19m of 
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 other reserves in accordance with frs 20 
‘sharebased payments‘ 
details of the principal operating subsidiaries held directly and 
indirectly by the company in the year ended 30 september 2014 
can be found in note 32 of the consolidated financial statements 
included within the total impairment charge of £169m is an £8m 
impairment in sportsworld holdings limited to reduce the net book 
value of the investment to its recoverable value of £nil as part of 
effecting an intragroup reorganisation it is planned for sportsworld 
holdings limited to be liquidated in due course an impairment of £161m 
2013 £133m has been charged in the year in respect of the cost of 
investment into tui france sas following the recapitalisation during the 
year and the outcome from the group’s annual impairment exercise 
the investment into tui france sas principally relates to two cgus 
that are the same as those used in the group’s annual impairment test 
these two cgus are the french tour operator and the french airline 
corsair detailed disclosure of the impairment test and the basis for 
calculation have been set out in note 10 of the consolidated financial 
statements the cost of investment has been compared against the 
value in use of corsair and the french tour operator using discounted 
cash flows as a basis of measurement 
the calculation of recoverable value for these two cgus uses the 
following assumptions
• cash flow projections based on the group’s latest board approved 
three year business plan which management has extended by two 
years to create a five year plan 
• cash flows beyond the plan period are extrapolated using a real 
growth rate of 180 2013 175 
• cash flows include the impact of working capital in both the asset 
base and the impact on cash flows over the plan period and
• cash flows are discounted using the group’s wacc adjusted as 
appropriate for business specific factors such as business risk  
the riskadjusted pretax wacc for these two cgus was 9 
2013 10
the directors believe the carrying value of all investments is supportable
a c c ou n tin g 	 p oli c i es 	continued
any 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
r elated 	 par ties
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 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
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 company’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
au di to r s ’ 	 r e m u n e rati o n
the company’s 2014 audit fee was £27000 2013 £26000
b 	 d i r e ct o rs ’ 	 r e m u n e ra ti o n 	 a n d 	 e m p l o y e es
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 years are 
contained in the audited section of the directors’ remuneration 
report and in note 6 of the consolidated financial statements details 
of all share awards issued by the company are given in note 6d of 
the consolidated financial statements all directors’ remuneration is 
borne by subsidiary companies 
c  	 d i v i d e n ds
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  	i n v estm e n ts
shares in
subsidiaries
£m
c o s t
at 1 october 2013 1729 
additions 268
disposals 17
a t 	 30 	 s e p t e m b e r 	 201 4 1980
pro v i s io n 	 f o r 	 im p a ir me n t
at 1 october 2013 468
impairment 169
a t 	 30 	 s e p t e m b e r 	 201 4 637
n e t 	 b ook 	 v al u e
at 30 september 2013 1261
a t 	 30 	 s e p t e m b e r 	 201 4 1343 183 tui travel p l c annu al repo rt  accounts 2014
 
strategic report
 
business and financial review
 
directors’ report
	
f in a n c i a l 	 s t ate m e n t s
 
shareholder information
e  	 d e bt o rs 	 a m o u n ts 	 fa l l i n g 	 d u e 	 a f t e r 	 m o r e 	 tha n 	 o n e 	 y e a r
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
amounts owed by group undertakings 43 44
amounts owed by group undertakings are unsecured bear no interest and are due for repayment on 22 may 2018
f  	 d e bt o rs 	 a m o u n ts 	 fa l l i n g 	 d u e 	 w i th i n 	 o n e 	 y e a r
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
amounts owed by group undertakings 59 58 
group relief receivable 57 118 
prepayments 12 7
deferred tax asset note j 23 – 
t otal 151 183
amount s 	 o w ed 	 b y 	 gr oup 	 under t akin gs
amounts owed by group undertakings at 30 september 2014 are unsecured and comprise £6m 2013 £8m that bears interest at lloyds bank 
five year swap rate plus a margin of 225 and has no fixed date of repayment and £53m 2013 £50m that bears no interest and is repayable  
on demand 
g 	c r e d i t o rs 	 a m o u n ts 	 fa l l i n g 	 d u e 	 w i th i n 	 o n e 	 y e a r
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
convertible bonds 2 – 
bank loans 2 2
amounts owed to group undertakings 82 109 
accruals and deferred income 9 18 
t otal 95 129
details of the convertible bond falling due within one year are given in note 20 of the consolidated financial statements the accounting for these 
convertible bonds is the same under uk gaap and ifrs
amount s 	 o w ed 	 to 	 gr oup 	 under t akin gs
amounts owed to group undertakings include £28m 2013 £28m that bears interest at the three month sterling libor rate plus 185 basis points 
and is repayable on demand subject to the borrower or the lender giving seven days‘ notice amounts owed to group undertakings also includes 
£39m 2013 £nil in respect of a recapitalisation of tui france sas which occurred after the year end for which the company had a constructive 
obligation to fund at 30 september 2014 all other amounts owed to group undertakings are unsecured interest free have no fixed date of 
repayment and are repayable on demand 
h  	c r e d i t o rs 	 a m o u n ts 	 fa l l i n g 	 d u e 	 a f t e r 	 m o r e 	 tha n 	 o n e 	 y e a r
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
convertible bonds 371 697 
bank loans 4 6 
amounts owed to group undertakings 270 270 
t otal 645 973
details of the convertible bonds are given in note 20 of the consolidated financial statements the accounting for these convertible bonds is the 
same under uk gaap and ifrs amounts owed to group undertakings comprise a loan of £269m 2013 £269m and interest payable of £1m 
2013 £1m the loan bears interest at libor plus a margin of 5 per annum is unsecured and is repayable by 31 march 2026 
i  	 p r o v isi o n 	 f o r 	 l i a b i l i ti es
3 0 	 s e p t em b er	
2014
£m
30 september 
2013
£m
de f e r re d 	 t a x 	  n o t e 	 j
other timing differences – 5
t o t al 	 p rov i s ion 	 for 	 li abi li t ie s – 5 184 tui travel p l c annu al repo rt  accounts 2014
financial sta te me nts
j  	 d ef e r r e d 	 tax
de fe r re d 	 t a x 	  li ab i li t y   a s s e t £m
at 1 october 2013 5
deferred tax charge to profit and loss account 1
deferred tax charge to equity 27
a t 	 30 	 s e p t e m b e r 	 201 4 23
the deferred tax asset comprises deferred tax on sharebased payments and other employee benefits
k  	c a l l e d 	 u p 	 sha r e 	 ca p i ta l
3 0 	 s e p t em b er
2014
£m
30 september
2013
£m
i s s ue d 	 an d 	 f u ll y 	 p ai d
1133842328 2013 1118010670 ordinary shares of 10p each 114 112
full y 	 p ai d 	 b u t 	 no t 	 ye t 	 i s s u e d
83710258 2013 nil ordinary shares of 10p each 8 – 
t otal
1217552586 2013 1118010670 ordinary shares of 10p each 122 112
following the receipt of irrevocable conversion notices from convertible bond holders during august 2014 15831658 ordinary shares of 10p each 
were issued in september 2014 for a total consideration of £55m representing the carrying value of the convertible bond extinguished at the date 
of conversion as such no cash was received on the issuance of these shares the nominal value of the ordinary shares issued was £2m £53m was 
credited to the share premium account on the issuance of these shares
following the receipt of irrevocable conversion notices from convertible bond holders in september 2014 83710258 ordinary shares of 10p each 
were issued between 1 and 7 october 2014 for a total consideration of £292m representing the carrying value of the convertible bond extinguished 
no cash was received on the issuance of these shares as the date of receipt of conversion notices represents the date of the extinguishment of 
the convertible bond liability the 83710258 ordinary shares are deemed paid up in accordance with section 58323 of companies act 2006 
notwithstanding the fact that they were issued in october 2014 the nominal value of these ordinary shares of £8m together with share premium 
of £284m has been recognised in called up share capital and the share premium account respectively
as described more fully in note 36 of the consolidated financial statements the ultimate parent company tui ag is the beneficial owner of 
5372 2013 5448 of the company’s issued ordinary share capital as at 30 september 2014
at 30 september 2014 7451101 shares 2013 8047575 shares were held by the group’s employee benefit trust based on the 30 september 
2014 closing mid share price of £389 2013 £368 the value of shares held was £29m 2013 £30m 
details of dividends debited to equity in the year are set out in note 9 of the consolidated financial statements whilst the company has the 
authority to purchase its own shares in the open market it has not done so in either the current or prior years
l  	c a p i ta l 	 a n d 	 r ese r v es
called up 
share
capital
£m
share 
premium 
account
£m
profit and
loss account
£m
convertible
bond reserve
£m
other
reserves
£m
total
shareholders’
funds 
£m
at 1 october 2012 112 – 263 88 33 496 
repurchase of own shares – – 3 – 19 16
sharebased payment charge for the year net of tax – – – – 15 15
profit for the financial year – – 270 – – 270 
effect of rate change on convertible bond – – – 3 – 3 
dividends paid – – 130 – – 130
at 30 september 2013 112	 –	 406	 91 29	 638	
repurchase of own shares – – – – 33 33
sharebased payment charge for the year net of tax – – – – 24 24
profit for the financial year – – 345 – – 345
conversion of convertible bonds net of tax 10 337 47 24 – 370
dividends paid – – 150 – – 150
a t 	 30 	 s e p t e m b e r 	 201 4 122 337 648 67 20 1194
as detailed in note k above a total of 99541916 ordinary shares of 10p each with a nominal value of £10m and share premium of £337m has 
been credited to called up share capital and the share premium account in the year a further £47m has been transferred from the convertible 
bond reserve to the profit and loss account on the conversion and extinguishment of the equity element of the convertible bond other reserves 
comprise of sharebased payment reserves
notes to the company’s financial statements  
continued 185 tui travel p l c annu al repo rt  accounts 2014
 
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business and financial review
 
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f in a n c i a l 	 s t ate m e n t s
 
shareholder information
m 	 c on tin ge n t 	 li a b i li ti es
there were contingent liabilities at 30 september 2014 in respect of 
guarantees and indemnities entered into as part of the ordinary course 
of the group’s business these guarantees cover payables by the 
company’s subsidiaries for items such as insurance and credit facilities 
car leases aviation fuel ground handling and airport services the 
company has also guaranteed the contractual obligations of various 
subsidiary companies in respect of the supply of a number of the 
group’s aircraft fleet no material losses are currently expected to be 
incurred by the company from such contingent liabilities 
where the company enters into financial guarantee contracts in order 
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 at 30 september 2014 the company 
had contingent liabilities in respect of counterguarantees for letters of 
credit amounting to £120m 2013 £136m the company has also 
guaranteed £15m of external bank facilities of its russian joint venture 
tttravel llc of which it indirectly owns 49
the company is an obligor to the group’s revolving credit facilities 
totalling £1225m details of which are set out in note 26f of the 
consolidated financial statements at 30 september 2014 the 
drawndown portion of this facility was £nil 2013 £nil 
as disclosed in notes 6 and 10 of the consolidated financial statements 
the group has established a pension funding partnership as part of the 
deficit funding arrangements for the three main uk defined benefit 
pension schemes the arrangements between the parties involved one 
of which is the company include an obligation on the company to pay 
cash into the tui travel amber ew llp should tui uk limited’s 
turnover fall below certain thresholds should either of the thomson or 
first choice brands ‘brand assets’ be sold should a formal valuation 
conclude that the distressed value of the brand assets together with 
any other permitted assets have declined to a value below £276m and 
during the final five years of the structure should the company have 
insufficient bank facilities to pay the total capital payments due to 
the schemes 
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
no amount is recognised in the company’s balance sheet in respect 
of any of the above guarantees as it is not probable that there will be 
an outflow of resources
the company may be required to recapitalise direct subsidiaries in 
certain countries where there is a legal requirement to do so in the 
event that the net assets or reserves fall below a determined level 
where recapitalisation is required the recapitalisation will be accounted 
for as an increase in the cost of investment in that subsidiary and 
subsequently tested for impairment see note d
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 the directors 
consider that adequate provision has been made for all known liabilities
n  	 r e la t e d 	 pa r ty 	 tra nsacti o ns
in april 2010 the company issued a £400m fixed rate 49 convertible 
bond of which an independent special purpose company antium 
finance ltd subscribed for 50 tui ag entered into a forward 
purchase agreement with antium finance ltd for those £200m of 
convertible bonds representing 86967049 shares in order to prevent 
dilution of its majority shareholding tui ag is entitled to receive the 
interest coupon on these bonds and to purchase them according to a 
new contractual arrangement dated 10 october 2013 antium finance 
ltd has assigned its rights to deutsche bank ag and the entitlement 
of tui ag to purchase the bonds is extended to july 2016 at the latest 
by way of security tui ag has transferred to antium finance ltd 
86967049 shares representing 714 of the company’s share capital 
on an undiluted basis and these shares are restricted from being 
transferred however tui ag remains entitled to the dividend yields 
to exercise the voting rights attached to them and to repurchase them 
by july 2016 at the latest 
further details of the convertible bonds are given in notes 20 and 31 
of the consolidated financial statements 
o  	 p o st 	 b a la n c e 	 sh e et 	 e v e n ts
on 15 september 2014 the independent directors of the company 
and the executive board vorstand of tui ag announced that they 
had reached agreement on the terms of a recommended allshare 
nilpremium merger of the company and tui ag the ‘merger’ to 
be implemented by way of a scheme of arrangement of the company 
under part 26 of the companies act 2006 the ‘scheme’ the scheme 
document in connection with the scheme containing the notice of the 
court meeting and notice of general meeting was published on 2 
october 2014 the ‘scheme document’ 
at the court meeting of the scheme shareholders and the general 
meeting of the tui travel shareholders both held on 28 october 2014 
the resolutions contained in the notice of the court meeting and 
notice of general meeting were duly passed by the requisite majorities 
it is expected that the court hearing to sanction the scheme will be 
held on 10 december 2014 and that the scheme will be effective on 
11 december 2014 as set out in the scheme document  186 tui travel p l c annu al repo rt  accounts 2014
shareholder information
gl o ssa r y 	 o f 	 k e y 	 t e r ms
ad	
accommodation  destinations sector
a gm
annual general meeting
apa c
asia pacific region
a sp
average selling price
a s setr igh t
optimum mix of owned and leased assets
b2b
businesstobusiness
b 2 c
businesstoconsumer
bn	
billion
c a gr
compound annual growth rate
c i s
commonwealth of independent states
c o
2
rpk
carbon dioxide emissions per revenue 
passenger kilometre
c o n tr o lle d 	 distr i b u ti o n
owned and franchised retail shops 
call centre and website
c oso
the committee of sponsoring organizations 
of the treadway commission
dabs	
deferred annual bonus scheme
dir e c t 	 distr i b u ti o n	
retail call centre and website
e ps
earnings per share
e t s	
european emissions trading scheme 
gdp	
gross domestic product
gmb	
group management board
i f r s 	
international financial reporting standards
j v	
joint venture
kp i s	
key performance indicators
l cc s	
low cost carriers
load 	 fa c tor	
passenger volumes as a percentage 
of capacity
m	
million
me r ge r	
the business combination of the tourism 
division of tui ag excluding certain hotel 
assets and first choice holidays plc
ot a 	
online travel agent
p sp	
performance share plan
p w c	
pricewaterhousecoopers llp
ro i c	
return on invested capital
rp i	
retail price index
sa s
specialist  activity sector
se c to r
subset of tui travel plc whose 
businesses share similar characteristics
su m m e r 	 se aso n	
may to october
t he 	 board	
tui travel plc board of directors
t he 	c ompan y	
tui travel plc
t he 	 gr oup	
the tui travel plc group of companies
t sr	
total shareholder return
tt v	
total transaction value
t ui	 a g 	
tui travel plc’s majority shareholder
u n ique 	 h o l ida ys
includes hotels and products that have been 
tailored to offer additional services and 
facilities to our customers
un w t o	
united nations world travel organisation
vc sp	
value creation synergy plan
wa c c	
weighted average cost of capital
winter 	 season	
november to april
c o n tacts 	 a n d 	 a d v ise rs
secr etar y 	 and 	 r egister ed 	 of fice
j walter
tui travel house
crawley business quarter
fleming way
crawley
west sussex rh10 9ql
telephone 01293 645700
facsimile 01293 645704
registered number 6072876
i n de p e n de n t 	 au di to r s
pricewaterhousecoopers llp
1 embankment place
london
wc2n 6rh
financial 	 a dviser
lazard
s to ckb r o k e r s
barclays
bank of america merrill lynch
so li ci to r s
herbert smith freehills
r egistrars 	 and 	 transfer 	 of fice
equiniti limited
aspect house
spencer road
lancing bn99 6da
shareholder contact centre no  
telephone 0871 384 2030
international 44 0 121 415 7047
website  wwwshareviewcouk
c ompan y 	 w ebsite
 wwwtuitravelplccom
s h a r e h ol d e r 	 di s c ou n t
in compliance with german law with effect 
from the completion of the merger with  
tui ag it will no longer be possible to offer 
a discount to shareholders  
strategic report
 
business and financial review
 
directors’ report
 
financial statements
	
sh a r e h ol d e r 	 i n f or m a t i o n
187 tui travel p l c annu al repo rt  accounts 2014
index
a
accommodation   
destinations sector 10 59
accounting policies 115 181
acquisitions  53 151
annual general meeting  101
audit committee  73
auditors  101
b
balance sheet  112 180
board committees  67
board of directors  64
brands 4
business and financial review 52
business models 13
c
chairman’s statement  6
chief executive’s statement 7
company balance sheet 180
consolidated balance sheet 112
consolidated income statement 110
consolidated statement  
of cash flows 114
consolidated statement  
of changes in equity 113
consolidated statement  
of comprehensive income 111
contacts and advisers 186
corporate governance report  67
current trading 61
d
directors’ biographies 64
directors’ remuneration 79
directors’ report 64
directors’ responsibilities 102
dividends  54 143
e
earnings per share  54 176
emerging markets sector 59
f
financial calendar  186
financial highlights  ifc
financial statements 103
g governance 67
group management board 32
group overview 2
group performance  52
growth levers 2 55
h health  safety 51
i
independent auditors’ report 104 179
investment case 2
k
key performance indicators  38
m mainstream sector 10 57
market overview 8
n
nomination committee  77
notes to the consolidated  
financial statements 115
o
operational highlights ifc
outlook 61
p pensions  132
people 32
principal operating subsidiaries 175
principal risks 42
r remuneration committee 67
remuneration report 79
s segmental performance 57
separately disclosed items 53 129
shareholder discount 187
specialist  activity sector 10 60
strategic drivers  13 to 23
strategic overview 3 12 13
strategy 12 to 23
sustainable development 24
t tax  62 141 153
total shareholder return  96
tui travel at a glance 2
w
where we operate 2
who we are 1 designed and produced by  
boone design and magenta digital
photography supplied by  
tui travel plc businesses tui travel plc
tui travel house
crawley business quarter
fleming way
crawley
west sussex
rh10 9ql
t elephone 0044 01293 645700
wwwtuitravelplccom


Summary:
 tt27  ar 2014  13102014  proof 1
02 tui travel p l c annu al repo rt  accounts 2014
tui travel at a glance
m a r k e t 	 o v e r v iew
le isu r e 	 tra v e l 	 ma r k et
• 2013 saw international 
arrivals increase by 5 to 
1087 million people 
• our main focus for tour 
operator and destination 
growth is in europe where the 
leisure travel market grew 54 
• our main focus for online 
accommodation growth is in 
asia where we saw the leisure 
travel market grow 62 
• travel and tourism accounts  
for 95 of global gdp and  
1 in 11 jobs worldwide
• market growth is forecast to 
rise 42 per annum from  
2014 – 2024
• continues to be driven by  
high growth in online bookings 
see kpis
•	 w e 	 a r e 	 w e l l 	 p o s i ti o n e d 	 t o	
b e n efit 	 f r o m 	 th e 	 ma r k et ’ s 	
s iz e 	 a n d 	 gr o w th
reasons to invest in tui travel plc
o ur 	 g r o wth 	 le v e rs	
c r e a ti n g 	 sha r e h o l d e r 	 va l u e
• delivering mainstream growth
  unique holidays only available from tui travel
  distributed directly to the customer – growth from online
  leveraging our scale
• organic specialist  activity growth
• leveraging our global leadership position in accommodation wholesaler 
through growth in existing markets 
• investing in accommodation ota 
• focus on free cash flow generation roic and operational efficiency
• pioneering sustainability change in our sector
see more on pages 55 and 56
make travel  
experiences  
special 
t u i	t ra v e l 	 i s 	 a 	 g lo b a l 	 b us i n e ss 	 o p e rati n g 	 a c r o ss	 	
3 1 	 k e y 	 s o ur c e 	 m a r k e ts 	 i n 	 1 80 	 c o un tr i e s 	 w o r l d w i de
wh a t 	w e 	do	
why 	w e 	do	 it 	
the 	 inve s t m ent 	 c as e 	
w he r e 	w e 	op e ra te
see more information on page 08 
s t r a t e g i c	r e p o r t 	group overview
australia
austria
belgium
brazil
canada
china
czech republic
denmark
finland
france
germany
hungary
india
ireland
italy
luxembourg
mexico
the netherlands
new zealand
norway
poland
russia
singapore
slovenia
spain
sweden 
switzerland
thailand 
ukraine
united kingdom
united states
o u r 	 3 1 	 k e y 	 so u r c e 	 ma r k ets 	 a r e  	
s t r at e g i c 	 r e p o r t
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
03 tui travel p l c annu al repo rt  accounts 2014
tt27  ar 2014  13102014  p roof 1
s tra t eg ic 	 f ram ew or k	 	
b us i n e ss 	 mo de l s	
s trat e g y  	 s usta i n a b il i ty	
a n d 	 p eo p le
o u r 	 s tra t e g y
through our global brand 
portfolio and travel expertise 
we are focused on delivering 
leisure travel experiences 
designed for our customers’ 
ever changing needs
t w o 	 str o n g 	 b usi n ess 	 m o d e ls
addressing the different 
customer demands within the 
market – tour operator and 
online accommodation 
o u r 	 s tra t e gi c 	 d r i v e rs
content brands  distribution 
technology growth  scale 
and people
o u r 	v a l u es
customer driven playing to  
win responsible leadership  
and value driven
s usta i n ab l e 	 dev e l o p m e n t	
taking care in destinations 
reducing carbon emissions and 
engaging our colleagues and 
customers in sustainability
o ur 	 p e o p le
engaging enabling and investing  
in our 57000 people is key to  
the group’s success 
the merger
t h e 	 s h a r e h o l de rs 	 o f	
t u i	t ra v e l 	 p l c	 a n d 	 	
t u i	 a g 	 h a v e 	 a p p r o v e d 	
a n 	 a lls h a r e 	 n i l	
p r e mi um 	 me r ge r	 	
w h i c h 	 w i ll 	 c o m p le t e	 	
o n 	 1 7 	 d e c e m b e r 	 2 0 1 5 	
o ur 	 p r i n c i p a l 	 kp i s
return on invested capital
1 46 	 vs 	 1 4 8  	2014 vs 2013
cash conversion
1
 
85  	 vs 	 9 3  	2014 vs 2013
free cash flow excludes net aircraft predelivery 
payments and movements in restricted cash 2013 
cash conversion restated to reflect the adoption of 
revised ias 19 ‘employee benefits’
unique holidays mix  
as a proportion of total  
mainstream sector holidays
7 1 	 vs 	 68  	2014 v 2013
unique calculation updated to include airtours 
brand and longhaul destinations not previously 
included within packages
direct distribution mix  
as a proportion of total 
mainstream sector holidays
68  	 vs 	 66  	2014 vs 2013
online distribution mix  
as a proportion of total 
mainstream sector holidays
3 8  	 vs 	 3 5  	2014 vs 2013
turnaround and cost  
savings delivered
£ 12m
increase in underlying operating 
profit on a constant currency 
basis for accommodation 
wholesaler business
 2 1 	
carbon efficiency measured 
through tui travel airlines’ 
average carbon emissions per 
revenue passenger kilometre 
co
2
rpk
6 9  9g 	 c o
2
r p k 	 vs 	 	
7 0 7 g	 c o
2
r p k 	2014 vs 2013 	
p r i n c i p a l 	 r i s ks
s tra t e gi c 	 r isks
• consumer preferences  
and desires
• business improvement 
opportunities 
• new markets  
acquisitions  investments 
o p e ra ti o na l 	 r isks
• global financial factors
• talent management
• political volatility natural 
catastrophes and outbreaks 
c om p li a n c e 	 r isk
• regulatory environment
ho w	w e 	do	 it 	 ho w	w e 	m e asur e 	 it 	 wh a t 	ar e 	 the 	r i sks  	
see more information on pages 12 to 37 see more information on page 38 
see more information on page 42