tt14  ar 2013  12122013  artwork tt14  ar 2013  12122013  artwork
tui travel p l c
tui travel house
crawley business quarter
fleming way
crawley
west sussex
rh10 9ql
t elephone 0044 01293 645700
wwwtuitravelplccom
a nn ual r epor t  acco un ts for the year ended 30 s eptember 2013
d riving sustainable growth
tui travel p l c  annual r eport  accounts for the year ended 30 september 2013
tt14tuiar13coverawindd   1 13122013   1729 tt14  ar 2013  12122013  artwork tt14  ar 2013  12122013  artwork
•	 r e c o r d 	 u n d e r l y i n g 	 o p e ra ti n g 	 p r o fi t 	 d e l i v e r e d  	 2 0 1 3 	 gr o wth 	 r o a d m a p	 
target exceeded
  underlying operating profit of £589m 2012 £490m an increase of 20  
over the prior year underlying operating profit increase of 13 to £555m  
on a constant currency basis 
  record mainstream underlying operating profits of £514m 2012 £420m
  underlying uk operating profit growth of 27 to £251m 2012 £197m  
with an operating margin increase of 110bp to 65 
  underlying german operating profit growth of 30 to £113m 2012 £87m  
with operating margin up 50bp to 27
  business improvement programme delivered higher than expected £46m  
of additional profit in the year 
  strong underlying earnings per share growth of 19 to 308p 2012 258p 
  statutory operating profit of £297m 2012 £301m with the reduction driven  
by a goodwill impairment of £188m relating to our specialist  activity business  
and french tour operator 
•	 mainstream growth driven by unique holidays direct distribution  
and o ne mainstream
  sales of highermargin unique holidays now 69 of mainstream holidays directly 
distributed holidays are 66 of mainstream holidays with online sales at 35
  record levels of customer satisfaction up two percentage points to 79 across  
our key markets
  our investment in the dig ital customer service proposition and our online platform  
is delivering clear benefits to our customers
•	 l everaging our global leadership position in accommodation wholesaler
  accommodation wholesaler continues to consolidate its global leadership position 
ttv growth of 23 to £1655m driven by a strong performance in asia and latin 
america
•	 d elivering increased shareholder value
  record cash flow generation with free cash flow of £427m an improvement  
of £122m the net cash position of £2m 2012 net debt of £142m provides 
further balance sheet strength
  cash conversion improved by 12 percentage points to 90 underlying roic 
improved by 26 percentage points to 148
  final dividend increase of 17 to 975p per share 2012 83p resulting in  
a full year dividend increase of 15 to 135p per share 2012 117p
•	 r obust current trading 
  overall winter 201314 trading is in line with our expectations with 60 of the 
programme sold
  pleased with summer 2014 trading despite strong comparatives from the prior year
  we remain confident of del ivering this year in line with our target to deliver  
7 to 10 underlying operating profit growth at constant currency over our  
fiveyear growth roadmap
  constant currency basis calculated by translating the 2013 results at 2012 exchange rates
 excludes restricted cash 
operational  financial highlights
r evenue 
£15051m
2012 £14460m 4
underlying  
o p e r at in g	p ro fi t
£589m
2012 £490m 20
u n d e r l y i n g 	p r o fi t 	 
before tax
£473m
2012 £390m 21
f r e e 	c a s h 	fl o w
£427m
2012 £305m 40
basic underlying  
earnings per share
308p
2012 258p 19
d ividend per share
135p
2012 117p 15
underlying results
1
statutory results
year ended 30 september
2013
£m
2012
£m
change

2013
£m
2012 
£m
revenue 15051 14460 4 15051 14460
operating profit 589 490 20 297 301
profit before tax 473 390 21 181 201
free cash flow
2
427 305 40 427 305
basic earnings per share pence 308 258 19 54 125
dividend per share pence 135 117 15 135 117
1
 underlying operating profit excludes separately disclosed items acquisition related expenses impairment of goodwill  
and available for sale financial assets and interest and taxation of results of the group’s joint ventures and associates
2
 restated to reflect the exclusion of restricted cash and predelivery payments
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produced by magenta digital
printed in the uk by pureprint 
group on amadeus primo silk 
fsc
®
 certified paper
amadeus primo silk is certified 
fsc and is made using ecf  
pulp is manufactured according 
to iso 9001 and iso 14001
100 of the inks used are 
vegetable oil based 95 of  
press chemicals are recycled  
for further use and on average  
99 of any waste associated 
with this production will be 
recycled
photography supplied by  
tui travel plc businesses
tt14tuiar13coverawindd   2 13122013   1729 tt14  ar 2013  13122013  artwork
01
  
strategic re port 
	 if c	 operati onal 	  	 financial 	 highlight s
	 0 2	 wher e 	 w e 	 operat e
	 04	 tui 	 t ra v el 	 at 	 a 	 glanc e
	 06	 our 	 f eatur ed 	 brands
	 08	 chairman ’ s 	 stat ement
	 09	 chief 	 e x ecutiv e ’ s 	 stat ement
	 1 0	 wh y 	 w e 	 do 	 it  	 mark et 	 o v er view
	 1 2	 ho w 	 w e 	 do 	 it  	 our 	 struc tur e	
	 1 4	 ho w 	 w e 	 do 	 it  	 our 	 strat egic	 
	 	 frame w ork 	 and 	 business 	 models	
	 1 6	 ho w 	 w e 	 do 	 it  	 our 	 fiv e 	 strat egic 	 driv ers
	 2 6	 ho w 	 w e 	 do 	 it  	 sustainable 	 de v elopment
	 34	 ho w 	 w e 	 do 	 it  	 our 	 people
	 38	 ho w 	 w e 	 measur e 	 it 	 
	 	 k e y 	 p e r f o rman c e 	 i n dic a t o r s
	 4 2	 what 	 ar e 	 the 	 risk s  	 p rincipal 	 risk s
	 5 2	 health 	  	 saf et y
  
bu sine ss and financial review
	 5 4	 gr oup 	 per f ormanc e	
	 5 7	 our 	 gr o w th 	 le v ers
	 5 9 	 segm e nt al 	 p e r f o rman c e
	 6 3	 curr ent 	 trading 	 and 	 outlook
	 64	 tax
  
direct or s’ re port
	 66	 boar d 	 of 	 dir ec t ors
 68 corporate governance report
	 7 3	 audit 	 c ommit t ee
	 7 8 	 n o mi na ti o n 	 c o m mit t e e
	 7 9 	 r e mun e r a ti o n 	 r e p o r t
	 99	 other 	 statut or y 	 disclosur es
	 1 0 2 	 d ir e c t or s ’ 	 r e sp ons ibiliti es
  
f inancial statement s
	 1 0 4 	 i nd e p e nd e n t 	 a ud i t o r s ’ 	 r e p o r t 	  gr o u p 
	 1 0 7 	 c o nso l i da t ed 	 i nc o me 	 st a t e me n t
	 1 0 8 	 c o nso l ida t e d 	 st a t e m e nt	 
	 	 o f 	 c o m p r e he ns iv e 	 i nc o me	
	 1 09	 c onsolidat ed 	 balanc e 	 sheet
	 1 1 0	 c onsolidat ed 	 stat ement 	 of 	 chang es	 
	 	 in 	 e q ui t y
	 1 1 1	 c onsolidat ed 	 stat ement 	 of 	 cash 	 flo ws
	 1 1 2	 not es 	 t o 	 the 	 c onsolidat ed	 
	 	 fi n a nc i a l 	 st a t e me n t s
	 1 7 5 	 i nd e p e nd e n t 	 a ud i t o r s ’ 	 r e p o r t	 
	 	  p ar e nt 	 c o m p an y 
	 1 7 6	 c ompan y 	 balanc e 	 sheet
	1 77	 not es 	 t o 	 the 	 c ompan y’ s	 
	 	 fi n a nc i a l 	 st a t e me n t s
  
shareh older inf ormati on
 182 financial calendar
	 1 8 2	 c onta c t s 	 and 	 advisers
	 1 8 2	 glossar y 	 of 	 k e y 	 t erms
	 1 8 3 	 shar e h o l d e r 	 disc o unt
	1 84	 index
w h o 	 w e 	 a r e
t u i 	 t ra v el 	 p l c 	  t u i 	 t ra v el 	 o r 	 t he 	 g r o u p  	 i s 	 o ne 	 o f	
t he 	 w o r ld’ s 	 lea d i n g 	 le i s u r e 	 t ra v el 	 g r o u p s 	 o p era t i n g 	 i n	
a ppr o x i m a t el y 	 1 80 	 c o u n t r i e s 	 w o r ld w i de 	 a nd 	 c o m pr i s i n g	
o v er 	 2 2 0 	 bra nd s 	 w e 	 s er v e 	 m o r e 	 t h a n 	 3 0 	 m i l l i o n	
c u st o mers 	 a c r o ss 	 3 1 	 s o u r c e 	 m a r k e ts 	 m a k i n g 	 u s 	 a	 
g l o b a l 	 pl a y er 	 i n 	 a 	 g r o w i n g 	 i nd u st r y  	 hea dq u a r t er ed	 
i n 	 t he 	 u k 	 w e 	 em pl o y 	 a ppr o x i m a t el y 	 5 5  000 	 p eo ple	 
a nd 	 o p era t e 	 s i x 	 a i r l i ne s 	 c o n s i s t i n g 	 o f 	 1 38 	 a i r cra f t
t h r o u g h 	 o u r 	 g l o b a l 	 bra nd 	 p o r tf o l i o 	 a nd 	 o u r 	 t ra v el	
e x p er t i s e 	 w e 	 a r e 	 f oc u s e d 	 o n 	 del i v er i n g 	 a 	 w i de	
va r i e ty 	 o f 	 le i s u r e 	 t ra v el 	 e x p er i enc e s 	 de s i g ned 	 f o r	
o u r 	 c u s t o mers ’ 	 e v er 	 ch a n g i n g 	 need s
t he 	 g r o u p 	 i s 	 s t r uct u r ed 	 a nd 	 m a n a g ed 	 t h r o u g h	
t h r ee 	 pr i nci p a l 	 bu s i ne ss 	 s ect o rs  	 m a i n st r ea m 	
a c c o m m od a t i o n 	  	 d e s t i n a t i o n 	 a nd 	 s p eci a l i st 	  	 a ct i v i ty 	
see ‘our structure’ on page 12 
t u i 	 t ra v el 	 i s 	 l i s t e d 	 o n 	 t he 	 l o nd o n 	 s t ock 	 ex ch a n g e	
a s 	 a 	 mem b er 	 o f 	 t he 	 f t s e 	 1 00 	 a nd 	 f t s e 4 g ood 	 i nd i c e s	
w i t h 	 t he 	 t i ck er 	 c ode 	 t t 	
f or more information visit  wwwtuitravelplccom
o u r 	 vi si o n
m a k in g 	 t ra v el	 
e x p er i en c e s 	 s p e ci a l …
see our ‘strategic framework and business models’ on page 14
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l a t i n a m e r i c a
tt14  ar 2013  13122013  artwork
02 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
brightspark school trip new york
operati ons 
the 	 us 	 and 	 canada 	 ar e 	 popu lar 	 destina ti ons	
f or 	 bo th 	 o u r 	 ma instr eam 	 and 	 specialist 	 	
activity 	 sect ors 	 with 	 a 	 selecti on 	 o f 	 specialist	
bra nds 	 opera tin g 	 o ut 	 o f 	 nor th 	 america	
includ in g 	 quark 	 expediti ons 	 and 	 t cs 	 	
s ta r q uest 	 ther e 	 is 	 also 	 a 	 mark et 	 f or 	 na ti onal	
tra v el 	 with in 	 the 	 us 	 wh ich 	 includes 	 educa ti onal	
trips 	 a nd 	 sprin g 	 br eak 	 outside 	 o f 	 eu r ope 	
ca na da 	 is 	 one 	 o f 	 o u r 	 larg est 	 so u r c e 	 mark ets
n orth america
isla saona beach ires dominican republic
operati ons
w e 	 r ema in 	 k een 	 t o 	 de v elop 	 o u r 	 opera ti ons	 
in 	 so uth 	 america 	 and 	 c on tin ue 	 t o 	 assess 	 the	
viability 	 o f 	 these 	 c o u n tries 	 bo th 	 as 	 so u r c e	
mark ets 	 and 	 as 	 destina ti ons 	 the 	 caribbean	
and 	 mexic o 	 ar e 	 v er y 	 popu lar 	 destina ti ons 	 f or	
o u r 	 cust omers 	 and 	 man y 	 adv en t u r e 	 brands	 
use 	 so uth 	 or 	 c en tral 	 america 	 as 	 destina ti ons	
f or 	 their 	 trips 	 last 	 y ear 	 w e 	 in v est ed 	 in 	 the	
brazilbased 	 online 	 tra v el 	 a g en t 	 malap r on ta	
and 	 c on tin ue 	 t o 	 gr o w 	 th is 	 business
c entral  south america
£15bn 
r evenue generated 
from across all the 
g roup’s businesses
a ustra l ia	
a u s tri a 	 	
b e lgiu m 	
brazil 
canada 
ch i na 	 	
cz e c h 	 r e p u b l i c	
denm a r k 	
finland 
france 
ge rma n y	
h un gar y 	
india  
ireland  
i ta l y	 	
lu x e m b o u r g 	
m e xi c o	 	
t he 	 ne t he r l a nd s 	
n e w 	 z e a la n d	
n o rway	 	
p o l an d 	 	
r u ssi a 	
s i n gap o r e 	
sl o v e n ia	
spa i n 	 	
s w e d e n 	 	
s w i t z e r l a nd 	
tha i la n d 	 	
u kra i n e	
u n it e d 	 ki n g d o m	
u n it e d 	 s ta t es	
our 31 key  
source market s
where	 we	 operate
t u i 	 t ra v el 	 i s 	 a 	 g l o b a l 	 bu s i ne ss 	 o p era t i n g 	 a cr o ss 	 3 1 	 k e y 	 s o u r c e 	 m a r k e ts
1groupxoverviewxxatxaxglancexv56 copyindd   2 13122013   1733 n o r t h a m e r i c a
a u s t r a l a s i a
e u r o p e
l a t i n a m e r i c a
a s i a
 
strategic re port
 
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
 
d ir e c to r s ’ 	 r e p o rt
 
f i n an c i al 	 s t a t e m e nt s
 
s h a re hol d e r 	 i n f orm a t i o n
03 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
itoi conservation project in kenya
operati ons
a frica 	 r ema ins 	 a 	 k e y 	 destina ti on 	 mark et 	 f or	 
tui 	 t ra v el 	 bo th 	 in 	 o ur 	 ma instr eam 	 sect or 	 and	
specia list 	  	 activity 	 sect or  	 k e y 	 destina ti ons	
f or 	 the 	 ma instr ea m 	 sect or 	 include 	 mor oc c o 	
ca pe 	v er de 	 a nd 	 ma uriti us 	 wh ilst 	 specialist 	 	
activity 	 bra nds 	 such 	 as 	 w orld 	 challen g e 	 t end	 
t o 	 opera t e 	 m or e 	 in 	 so uthern 	 a frica 	 zambia	
t a nza n ia 	 a nd 	 bo tswa na	
africa
sensimar agios gordios beach corfu
operati ons
eur ope 	 is 	 the 	 home 	 o f 	 man y 	 o f 	 o u r 	 k e y	 
so ur c e 	 ma rk ets 	 a nd 	 destina ti ons 	 the 	 gr o u p 	 is	
opera t ed 	 o ut 	 o f 	 the 	 u n it ed 	 kin g dom 	 and 	 has	
k e y 	 ma rk ets 	 in 	 spa in 	 the 	 nor dics 	  	 german y 	
with 	 med it erra nea n 	 loca ti ons 	 c onsist en tly	 
some 	 o f 	 o ur 	 m ost 	 popu lar 	 destina ti ons
eur ope
a sia  a u strala sia
krabi beach thailand 
operati ons
asia 	 is 	 a 	 k e y 	 ar ea 	 o f 	 f ocus 	 as 	 w e 	 c onc entra t e	
o u r 	 a tt en ti on 	 on 	 vari o us 	 emergin g 	 ec onomi es	
a cr oss 	 the 	 c on tinen t 	 asiar ooms c om 	 the	
online 	 tra v el 	 a g en t 	 is 	 gr o win g 	 qui ckly 	 in 	 line	
with 	 demand 	 f or 	 h olida y 	 a c c ommoda ti on 	 in	
asia 	 f ocusin g 	 on 	 mala ysia 	 sin gapor e 	 and	
australia 	 australia 	 is 	 also 	 home 	 t o 	 some 	 o f	 
o u r 	 specialist 	  	 activity 	 brands 	 one 	 o f 	 o ur	
leadin g 	 jo in t 	 v en t u r es 	 p e ak 	 is 	 based 	 in	
australia 	 alon g 	 with 	 a 	 selecti on 	 o f 	 spor ts	
brands 	 in 	 bo th 	 australia 	 and 	 ne w 	 zealand
£589m 
u nderlying operating 
profit achieved for th e 
financial year 2013
£46m
d elivered from 
business improvement 
programmes
1groupxoverviewxxatxaxglancexv56 copyindd   3 13122013   1733 tt14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
04 tui t ravel p lc a n n u a l	 r ep o r t	  	 a c c o u n t s	 201 3
tui	 t ravel	 at	 a	 glance
market overview
l eisure travel market
•	 2 0 1 2 	 sa w 	 i n t e r n a ti o n a l 	 a r r i va l s	
b r e a k 	 t h e 	 o n e 	 b i l l i o n 	 m a r k 	 f o r	
t h e 	 fi rst 	 t i m e 	 e v e r	
•	 t ra v e l 	 a n d 	 t o u r i s m 	 a c c o u n t s	 
f o r 	 9 	 o f 	 gl o b a l 	 g d p 	 a n d	 
1 	 i n 	 1 1 	 j o b s 	 w o r l d w i d e
•	 m a r k e t 	 gr o w t h 	 ra t e 	 o f 	 4 	
d u r i n g 	 2 0 1 2 	 a n d 	 c o n ti n u e s 	 t o	
b e 	 o n e 	 o f 	 t h e 	 w o r l d’ s 	 fa st e st	
gr ow i n g 	 se cto rs
•	 an 	 a v e ra ge 	 gr o w th 	 ra t e 	 o f 	 4 	
s i n c e 	 1 99 5 	 a n d 	 se t 	 t o 	 c o n ti n u e
•	 d e m a n d 	 r e m a i n s 	 str o n g	 
f o r 	 l e i s u r e 	 t ra v e l 	 d e s p i t e	 
an 	 un c e r ta i n 	 e c onomic	
e n v ir on m e nt
•	 co n t i n u e s 	 t o 	 b e 	 d r i v e n 	 b y	 
h i gh 	 gr o w t h 	 i n 	 o n l i n e 	 b o o ki n gs	
 s e e 	 k p i s 
• we are well positioned to 
benefit from the market’s 
size and growth 
r e a s o n s 	 t o 	 i n v e s t 	 i n 	 t u i 	 t ra v e l 	 p l c
our growth levers 
c reating shareholder value
•	 d el i v er i n g 	 m a i n s t r ea m 	 g r o w t h
  u n i q ue 	 h o l i d a y s 	 o n l y 	 a va i l a ble 	 f r o m 	 t u i 	 t ra v el
  di s t r i bu t e d 	 d i r ect l y 	 t o 	 t he 	 c u st o mer 	 –	 
g r o wt h 	 f r om 	 onlin e
  l e v era g i n g 	 o u r 	 s ca le
•	 o r ga n i c 	 s p eci a l i s t 	  	 a ct i v i ty 	 g r o w t h
•	 l e v era g i n g 	 o u r 	 g l o b a l 	 lea ders h i p 	 p o s i t i o n 	 i n	
ac c ommo d a t i on 	 w hol e sa l e r 	 t hr o u g h 	 g r o wt h	
i n 	 e x i s t i n g 	 m a r k e ts	
•	 i n v e st in g 	 in 	 ac c ommo d a t i on 	 o t a 	 –	 
f oc u s 	 o n 	 h i g h 	 g r o wt h 	 a nd 	 ne w 	 m a r k e ts
•	 f oc u s 	 o n 	 f r ee 	 ca s h 	 fl o w	 g enera t i o n 	
r oi c 	 a nd 	 o p era t i o n a l 	 e f fi ci ency
•	 p i o neer i n g 	 s u s ta i n a b i l i ty 	 ch a n g e 	 i n 	 o u r 	 s ect o r
make	 travel	 
e x p er i en c e s	 
s p e c i al	
o ne 	 o f 	 t he 	 w o r ld’ s 	 lea d i n g	 
l e i su r e 	 t ra v e l 	 g r o u ps 	 o p e ra t i n g	 
in 	 a ppr o x im a t el y 	 1 80 	 c o u n t r i e s	
w or l d w id e
w hat we d o 
w hy we d o it 
the inve stment ca se 
see more information on page 10 
see more on pages 57 and 58
strategic re port g r oup 	 ov e r v i e w
1groupxoverviewxxatxaxglancexv56 copyindd   4 13122013   1733  
strategic re port
 
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
 
d ir e c to r s ’ 	 r e p o rt
 
f i n an c i al 	 s t a t e m e nt s
 
s h a re hol d e r 	 i n f orm a t i o n
05 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
strategic framework  
business models 
strategy sustainability 
and people
our strategy
th r o u gh 	 o u r 	 gl o b a l 	 b ra n d	
p o r tf o l i o 	 a n d 	 tra v e l 	 e x p e r ti se	
w e 	 a r e 	 f o c u se d 	 o n 	 d e l i v e ri n g	
l e i s u r e 	 tra v e l 	 e x p e ri e n c e s	
d e s i gn e d 	 f o r 	 o u r 	 c u st o m e rs ’	
e v e r 	 c h a n gi n g 	 n e e d s
t wo strong business models
a d dr e ss i n g 	 t h e 	 di f f e r e nt 	 c u st om e r	
d e m a n d s 	 w i th i n 	 th e 	 m a rk e t 	 –	
t our o perator and o nline 
a c c om mo d a t i on	
our strategic d rivers
co n t e n t 	 b ra n d s 	  	 d i stri b u ti o n 	
t e c h n o l o g y  	 gr o w th 	  	 sca l e	
a nd 	 p eo p le
our values
c u sto mer dri v e n  	 pla y i n g 	 t o	 
win  	 r e s p on s ib l e 	 l e ad e rs h ip	 
a n d 	v a l u e 	 d ri v e n
sustainable d evelopment 
t a ki n g 	 ca r e 	 i n 	 d e sti n a ti o n s	
r e du c in g 	 car b on 	 e mi ss i on s 	 an d	
e n ga gi n g 	 o u r 	 c o l l e a gu e s 	 a n d	
c u st om e rs 	 in 	 s u sta in abil i ty
our people
e n ga gi n g  	 e n a b l i n g 	 a n d 	 i n v e sti n g	 
i n 	 o u r 	 5 5 000 	 p e o p l e 	 i s 	 k e y 	 t o	 
th e 	 gr o u p ’ s 	 s u c c e ss	
w e	 serve	 more	
t h an 	 3 0 	 mi ll i on	
cu s t o m ers
our key kpis
r eturn 	 on 	 in v es t e d 	 c apit al
148 vs 122 2013 vs 2012
c ash 	 conv er si o n
1
 
90 vs 78 2013 vs 2012
f r e e 	c a s h 	fl o w 	e x c l u d e s 	n e t 	a i r c r a f t 	p r e  d e l i v e r y 	
p a y m e n t s 	a n d	m o v e m e n t s 	i n 	r e s t r i c t e d 	c a s h
un iqu e 	 hol ida ys 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	 
ma ins tr e am 	 se c t or 	 hol ida ys
69 vs 65 2013 v 2012
d ir e c t 	 dis tri b uti on 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	
ma ins tr e am 	 se c t or 	 hol ida ys
66 vs 65 2013 vs 2012
on l in e 	 dis tri b uti on 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	
ma ins tr e am 	 se c t or 	 hol ida ys
35 vs 33 2013 vs 2012
t u rna r o u n d 	 a n d 	 c o s t	 
s a vi n g s 	 deliv er e d
£46m
i n c r ease 	 i n 	 r o o m n i gh t s 	 f o r 	 th e	
a c c om mo da ti on 	 whol es al e r	
b usi n es s
16 vs 13 2013 vs 2012
c a rbo n 	 ef fic i e n c y  	 m easu r ed	
th r o u gh 	 tu i 	 t r a v e l 	 a i rl i n es ’	
a v e r a ge 	 c a rbo n 	 e m is si o ns 	 pe r	
r e v e n u e 	 pas se n ge r 	 ki l o m etr e	
c o
2
rpk 
707g c o
2
r pk vs  
730g c o
2
r pk 2013 vs 2012 
principal risks
strategic risks
•	 c o n s u m er 	 pr e f er en c e s	 
a n d 	 d e s i r e s
•	 b u s i n e ss 	 i mpr o v em en t	
op p or tun i t ie s	
•	 e m e r gi n g 	 m a r k e t s	 
a c qu i s i t i on s 	 an d 	 in v e st m e nt s	
operational risks
•	 g lob al 	 fi n an c i al 	 fa c t ors
•	 r e gul a t or y 	 e n v ir on m e nt	
•	 t al e nt 	 m an a g e m e nt
•	 p ol i t ical 	 v ol a t i l i ty  	 n a tural	
ca ta st r o p h e s 	 a n d 	 o u tb r e a ks	
c ompliance risk
•	 r e gul a t or y 	 e n v ir on m e nt
ho w we d o it ho w we mea sure it w hat are the ri sk s 
see more information on pages 12 to 37 see more information on page 38 
see more information on page 42 
1groupxoverviewxxatxaxglancexv56 copyindd   5 13122013   1733 06 tui travel p l c annu al re po rt  acc ounts 2013
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i n 	 ge rm a n y 	 t u i 	 i s 	 o n e 	 o f 	 th e 	 b e st 	 kn o w n 	 c o n s u m e r	
b ra n d s 	 a n d 	 th e 	 fa v o u ri t e 	 h o l i d a y 	 b ra n d 	 f o r 	 c o n s u m e rs	
a n d 	 tra v e l 	 a ge n c i e s 	 a l i k e  	 i t 	 h a s 	 a 	 m a rk e t  l e a d i n g 	 p o s i t i o n
 
 
 
for more visit  wwwtuicom
a i r t o u rs 	 i s 	 a 	 l u x u r y 	 h o l i d a y 	 b ra n d 	 w h i c h  	 f o r 	 m o r e 	 t h a n	 
40 	 y e a rs 	 h a s 	 o f f e r e d 	 th e 	 m o st 	 c o m p r e h e n s i v e  	 i n d i v i d u a l	
a n d 	 e x c l u s i v e 	 h o l i d a ys 	 i n 	 th e 	 ge rm a n 	 s p e a k i n g 	 m a r k e t
 
 
 
for more visit  wwwairtoursde
t h e 	 mo or in g s 	 i s 	 t h e 	 w or l d’ s 	 l e adin g 	 y a c ht 	 c h art e r 	 c om p an y	
w i t h 	 o v e r 	 5 00 	 ya c h ts 	 i n 	 2 7 	 c r u i s i n g 	 d e st i n a t i o n s 	 w o r l d w i d e 	
th e 	 m o o ri n gs 	 o f f e rs 	 a 	 c o l l e cti o n 	 o f 	 m e m o ra b l e 	 ge ta wa ys	
f r o m 	 h a n d so n 	 sa i l i n g 	 o r 	 p o w e r 	 yac h t 	 vaca t i o n s 	 t o	
a l l i n c l u s i v e 	 p ri va t e 	 l u x u r y 	 c r e w e d 	 yac h ts
 
 
for more visit  wwwmooringscom
t h o m s o n 	 h a s 	 b e e n 	 s e l l i n g 	 h o l i d a ys 	 f r o m 	 th e 	 u k 	 f o r 	 o v e r	
5 0 	 y e a rs 	 i t 	 i s 	 o n e 	 o f 	 t h e 	 u k ’ s 	 m o st 	 w e l l 	 kn o w n 	 h o l i d a y	
b ran d s 	 d e l i v e r in g 	 un iqu e 	 an d 	 mo d e r n 	 hol id a y 	 e x p e r ie n c e s	
i n 	 2 0 1 3  	 90  	 o f 	 h o t e l s 	 i n 	 i ts 	 b r o c h u r e s 	 w i l l 	 b e 	 e x c l u s i v e	
t o 	 t hom s on
 
for more visit  wwwthomsoncouk
la t e r o o m s c o m 	 i s 	 t h e 	 u k ’ s 	 l e a d i n g 	 o n l i n e	
ac c o m m o d a t i o n 	 s p e c i a l i st 	 p r o v i d i n g 	 a 	 w h o l e 	 w o r l d	 
o f 	 h o t e l 	 p o ss i b i l i t i e s 	 f o r 	 c u st o m e rs 	 f r o m 	 b o u ti q u e	 
t o 	 c h a i n 	 h o t e l s 	 c o sy 	 b  b s 	 t o 	 l u x u r y 	 s p a s
 
 
for more visit  wwwlateroomscom
f o r 	 o v e r 	 2 0 	 y e a rs 	 q u a r k 	 ex p e d i t i o n s 	 h a s 	 b e e n 	 t h e 	 l e a d i n g	
p r o v i d e r 	 o f 	 p o l a r 	 a d v e n t u r e 	 t ra v e l 	 wi th 	 i t s 	 d i v e rse 	 fl e e t 	
o f 	 s p e c i a l l y 	 e q u i p p e d 	 v e ss e l s 	 a n d 	 s e a s o n e d 	 e x p e d i ti o n	
l e a d e rs 	 i t 	 o ff e rs 	 t ra v e l l e rs 	 u n p a ra l l e l e d 	 a c c e ss 	 to 	 t h e 	 m o st	
r e m o t e 	 r e gi o n s 	 o n 	 e a r t h
 
 
for more visit  wwwquarkexpeditionscom
o ur 	 f e a tur e d 	 b ran d s
t u i 	 t ra v el 	 o p era t e s 	 o v er 	 2 2 0 	 bra nd s 	 w h i ch 	 a r e 	 a va i l a ble 	 t o 	 v i e w 	 o n 	 o u r 	 w eb s i t e	
 wwwtuitravelplccombrandexperience  a 	 s elect i o n 	 o f 	 o u r 	 f ea t u r ed 	 bra nd s 	 i nc l ude s 
strategic re port g r oup 	 ov e r v i e w
1groupxoverviewxxatxaxglancexv56 copyindd   6 13122013   1733  
strategic re port
 
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
 
d ir e c to r s ’ 	 r e p o rt
 
f i n an c i al 	 s t a t e m e nt s
 
s h a re hol d e r 	 i n f orm a t i o n
07 tui travel p l c annu al re po rt  acc ounts 2013
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f r i t i d s r e s o r 	 i s 	 t h e 	 l e a d i n g 	 t o u r 	 o p e ra t o r 	 a n d 	 r e ta i l 	 b u s i n e ss	
i n 	 th e 	 s w e d i s h 	 so u r c e 	 m a rk e t 	 o f f e ri n g 	 p a c ka ge 	 t o u rs	
t o 	 d e sti n a ti o n s 	 w o rl d w i d e  	 i n c l u d i n g 	 th e 	 m e d i t e r ra n e a n 	
ca n a r y 	 i s la n d s 	 a n d 	 th a i la n d
 
 
for more visit  wwwfritidsresorse
h o t e l b e d s 	 i s 	 th e 	 gl o b a l 	 ac c o m m o d a ti o n 	 w h o l e sa l e r 	 w i t h	
a n 	 o n l i n e 	 d a ta b a se 	 s u p p l y i n g 	 o v e r 	 60  000 	 h o t e l s 	 i n 	 1 80	
c o u n tri e s 	 t o 	 tra v e l 	 a ge n ts 	 a i rl i n e s 	 a n d 	 t o u r 	 o p e ra t o rs
 
 
 
for more visit  wwwhotelbedscom
t u i 	 n e th e rla n d s 	 o p e ra t e s 	 ark e  	 th e 	 l e a d i n g 	 b 2 c 	 t ra v e l	
b ra n d 	 i n 	 t h e 	 d u t c h 	 s o u r c e 	 m a r k e t 	 a n d 	 a 	 h o u s e h o l d 	 n a m e	
b e s i d e s 	 t o u r 	 o p e ra ti n g  	 i t 	 o p e ra t e s 	 1 2 0 	 t ra v e l 	 s h o p s	
a 	 ca l l 	 c e n tr e 	 a n d 	 th e 	 w e b s i te 	 ark e n l 	 ark e 	 i s 	 a n 	 i m p o r ta n t	
s u p p l i e r 	 o f 	 p a ss e n g e rs 	 t o 	 t h e 	 a i r l i n e 	 a r k e f l y  	 a l s o 	 o p e ra te d	
b y 	 t u i 	 n e th e rla n d s	
 
for more visit  wwwarkenl
j e ta i r 	 i s 	 t u i 	 b e l gi u m ’ s 	 m a st e r 	 b ra n d  	 i t 	 i s 	 a 	 t o u r	 
o p e ra t o r 	 w h i c h 	 o f f e rs 	 a 	 ra n ge 	 o f 	 a i r 	 a n d 	 ca r 	 h o l i d a ys	 
a n d 	 c i ty 	 t r i p s	
 
 
 
for more visit  wwwjetairbe
i n t e r c ru i s e s 	 s h o r e s i d e 	  	 p o r t 	 s e r v i c e s 	 i s 	 a n 	 e x p e r i e n c e d	
gl o b a l 	 b u s i n e ss 	 o f f e r i n g 	 fi rst 	 c l a ss 	 gr o u n d 	 h a n d l i n g 	 a n d	
p o rt 	 a ge n cy 	 s e rv i c e s 	 t o 	 t h e 	 o c e a n 	 a n d 	 r i v e r 	 c r u i s e 	 i n d u st ry 
 
 
 
for more visit  wwwintercruisescom
wi t h 	 o v e r 	 3 0 	 y e a rs ’ 	 e x p e r i e n c e  	 c r ysta l 	 i s 	 th e 	 u k ’ s	
n u m b e r 	 o n e 	 s k i 	 o p e ra t o r  	 ta k i n g 	 c u st o m e rs 	 t o 	 m o r e 	 o f	
t h e 	 w o r l d’ s 	 b e st 	 s n o w 	 r e s o r ts 	 t h a n 	 a n y o n e 	 e l se 	 f r o m	
s e l f ca t e r i n g 	 a p a r t m e n ts 	 t o 	 c o sy  	 f r i e n d l y 	 s ki 	 c h a l e t s
 
 
 
for more visit  wwwcrystalskicouk
180 
t he number of 
countries the g roup 
operates in
1groupxoverviewxxatxaxglancexv57 copyindd   7 18122013   1100 another record breaking year for tui travel
08 tui travel p l c annu al re po rt  acc ounts 2013
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chairman’s statement
results across mainstream this year  
we reported record levels of customer 
satisfaction up two percentage points from 
2012 to reach 79 2012 77 further  
to this our highermargin unique holiday 
sales increased by four percentage points 
accounting for 69 of mainstream holidays 
sold 2012 65 proving that our strategy  
to focus on unique holidays is working 
for more information please see page 54 
dividends
we have a progressive dividend policy and  
it is the group’s aim to maintain underlying 
dividend cover at around two times 
reflecting this year’s performance the board 
is recommending a final dividend per share  
of 975p per share 2012 83p an increase  
of 17 at the time of our interim results the 
board proposed an increase of 10 to 375p 
2012 34p leading to a full year dividend of 
135p per share up 15 from 117p in 2012 
board
on 8 february 2013 i was appointed as a 
nonexecutive director and on 25 march 
2013 was appointed to replace dr michael 
frenzel as nonexecutive chairman of the 
board following his retirement on the same 
day sebastian ebel became a nonexecutive 
director 
for more information on the board please  
see page 66 
sustainable development
tui travel is a truly worldwide organisation 
and we are committed to operating our 
business in a sustainable manner we have  
a threeyear sustainable holidays plan 
launched in 2012 which sets out four 
overarching goals with 20 measurable  
and challenging commitments to responsible 
tourism in this report we highlight progress 
from the second year of the plan and were 
pleased to see some promising results 
particularly in terms of carbon management 
we achieved our airline carbon reduction 
target of 9 20082014 one year ahead  
of schedule with a reduction in our airlines’ 
per passenger carbon emissions of 32 
yearonyear to 707g co
2rpk 2012 730g 
co 2rpk
sustainability is ingrained in our business 
culture not just for our own future as a 
business but as industry leaders to set an 
example to the wider travel industry and 
beyond 
for more information please visit page 26 
colleagues
the customer is at the centre of everything 
we do but equally important to our success 
are our colleagues tui travel is an 
organisation built from a workforce of over 
55000 dedicated colleagues worldwide all  
of whom share a common set of values which 
together creates tui travel and drives our 
performance as a market leader
the hard work and commitment of this 
network of colleagues is vital to the success 
we have had to date they play an integral 
part in driving our future growth on behalf 
of the board i would like to thank personally 
every one of our colleagues for putting in 
such a fantastic effort and helping us achieve 
the performance we have had in this 
recordbreaking year 
friedrich joussen 
nonexecutive chairman
this has been another record breaking 
year for tui travel it is my first year  
as chairman of the company and i am 
delighted to report a 20 increase in 
underlying operating profit to £589m  
or 13 on a constant currency basis to 
£555m 2012 £490m this has generated 
growth in our underlying basic earnings 
per share eps having increased by  
19 to 308p 2012 258p our statutory 
operating profit decreased slightly to 
£297m 2012 £301m largely due to the 
£188m impairment of goodwill meaning 
our statutory eps has moved from  
125p to 54p for 2013 
we operate in a market segment that as a 
matter of course has to weather geopolitical 
events as a result it is vital that we have  
a strong and resilient business model that 
enables us to deliver on our strategy which  
in turn drives longterm sustainable growth 
and increased shareholder returns all of 
which i am pleased to report have been 
achieved this year 
the travel and tourism sector has continued 
to grow by an average of 4 annually since 
1995 and is forecast to grow by 31 in 2013 
alone – outpacing the global economy the 
comparable growth of tui travel is testament 
to what a fantastic year this has been and 
shows how well we are positioned to continue 
to deliver on our annualised 710 growth 
plan 
results
our financial performance comes as a result 
of our continued commitment to delivering 
highquality unique holidays direct to our 
customers this is coupled with a resilient 
business model and ambitious yet achievable 
growth roadmap our commitment to the 
customer is also delivering measurable 
15 
growth in full year 
dividend
strategic report group ov erv iew
2chairmanxandxceosxstatementv32 copyindd   8 13122013   1735 09 tui travel p l c annu al re po rt  acc ounts 2013
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strategic report
 
bus iness and f inanc ial rev iew
 
directors’ report
 
fi nanc ial statements
 
s ha reh olde r inf ormat ion
chief executive’s statement
margins are often booked earlier leading to 
better yield management and efficiency and 
we receive excellent customer feedback that 
in the majority of cases leads to repeat 
bookings and advocacy within our customer 
base one of our flagship unique holiday 
concepts is sensatori from thomson which 
received a 92 customer satisfaction score 
this year we have continued growing our 
unique holiday portfolio across the group  
and remain committed to identifying 
opportunities to develop it further 
our direct distribution channels are key to 
the group’s success and enable us to increase 
margin and improve results the number of 
holidays booked through our mainstream 
websites continues to increase and this 
remains the core contributor for direct sales 
of our direct sales 35 are online which 
equates to £37 billion in revenue there is 
still ample opportunity to increase direct 
distribution channels which will help us gain 
further margin across all our source markets 
we are an online business but we continue  
to drive further enhancements through 
technologies that amplify the customer 
experience at the frontend and drive further 
efficiencies in the backend processes in  
may this year we launched the awardwinning 
tui digital assistant in the uk as the 
‘mythomson’ mobile app which was very well 
received by customers achieving a five star 
rating in the apple app store and topping the 
free download travel app chart shortly after 
launch since then we have had in excess of 
180000 downloads proving we understand 
what our customers want and need from 
their travel provider post year end we began 
the tui digital assistant international rollout 
with the ‘meine tui’ mobile app launch in the 
german source market 
i am pleased to say that we were the first 
business in the uk to take delivery of the 
boeing 787 d reamliner that has exceeded 
customer and our own expectations in its  
first few months of operation t his has 
enabled us and will continue to enable us to 
fly to new and exciting destinations such as 
thailand from the uk in may we committed 
to purchasing 60 new boeing 737 ma x 
aircraft and secured the option and right  
to purchase another 90 on the same terms  
the deal will enhance our unique offering 
replace older aircraft improve fuel efficiency 
and help secure the future of our six airlines 
the delivery of the 60 committed aircraft  
will run from january 2018 until march 2023 
it has been a record year for us but we don’t 
believe it will stop there we are pleased  
with the performance at the start of winter 
201314 with 60 of the programme sold  
and we are encouraged by early summer 
2014 trading against strong comparatives 
tui travel is structurally well positioned  
with a robust business model that gives  
us a long term competitive advantage the 
business continues to deliver sustainable 
growth through our unique holiday 
experiences increasingly distributed online 
whilst leveraging its scale as one organisation 
this in turn will drive further value for both 
our customers and shareholders building  
on this year’s outperformance where we have 
achieved a 20 underlying operating profit 
growth i remain confident that we will deliver 
consistently on our five year annualised 
growth target of between 7 to 10
our colleagues are the true driver of the 
business their commitment endeavour  
and passion to deliver incredible travel 
experiences for our customers is proven in 
the exceptional results we have announced 
this financial year i would like to thank each 
and every one of them for the dedication 
they have shown and continue to show  
each and every day thank you again
peter long 
chief executive 
as a group we have had a great year 
because of this i’d like to start by 
thanking our colleagues across the 
business who have pushed themselves  
to deliver this fantastic set of results 
thank you 
t his financial year has been exceptional and 
our strategy continues to bear fruit for the 
sixth year running we have delivered a record 
underlying operating profit t his year we 
achieved £589m 2012 £490m representing 
growth of 20 over the 12month period  
on a constant currency basis our underlying 
operating profit increased 13 to £555m 
2012 £490m surpassing the top end of our 
growth roadmap target 10 revenue has 
increased during the financial year by 4 to 
£151 billion or on a constant currency basis 
2 to £147bn 2012 £145bn our two 
largest source markets saw underlying 
operating profit growth of 27 in the u k and 
30 in germany delivering £251m 2012 
£197m and £113m 2012 £87m respectively 
while margins continue to improve
following these results it is obvious that our 
strategy of selling unique holidays directly  
to our customers is the right one as the 
business continues its move towards a more 
online future and while we efficiently manage 
our costs we continue to build upon the 
foundations of a business set for sustainable 
growth our colleagues within the business 
care deeply about the customer experience 
and everything we do is built around 
enhancing it at every level through every 
stage of the customer journey from dreaming 
of a holiday to sharing it with family and 
friends once they have returned home
over twothirds of mainstream holidays 
booked are now unique holidays an increase 
on last year that has been steadily rising  
since 2007 when this became the focus of  
our strategy t he main benefits of unique 
holidays are fivefold t hey provide higher 
£37bn 
direct online sales 
across our mainstream 
sector
69
percentage of 
mainstream holidays 
sold that are unique
20 
growth in underlying 
operating profit
2chairmanxandxceosxstatementv32 copyindd   9 13122013   1735 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
world economic outlook  change in g d p intern ation al arri val 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
10 tui travel p l c annu al re po rt  acc ounts 2013
tt14  ar 2013  13122013  artwork tt 14  ar 2013  13122013  artwork
str ate gic re port
why we do it market overview
t he economic environment
the global economic recovery has maintained the slow pace of 2012 
with gdp growth recorded at slightly below 3 this can be attributed 
to weaker domestic demand and continued low growth in several key 
emerging market economies combined with the ongoing recovery 
from recession in the main european countries 
while emerging and developing economies registered a 45 increase 
in gdp advanced economies experienced a more modest increase  
of 12 our two largest source markets the uk and germany saw 
growth of 14 and 05 respectively in 2013 
source world economic outlook update 71013 imf
despite this slow growth germany and the uk have seen 
unemployment decreasing yearonyear germany has the second 
lowest unemployment rate in the eurozone at 53 and the uk has 
seen unemployment levels fall to 77 in 2013 source eurostat 2013 q2
t he leisure travel market
2012 was a record year for international tourism with global international 
arrivals surpassing the 1 billion mark for the first time 2012 saw 
growth continue at 4 slightly less than the 48 seen in 2011 europe 
continues to account for over half of worldwide arrivals reaching 
534 million in 2012 
the travel market continues to be driven by high growth in online 
bookings and while the uncertain economic environment has had an 
effect on consumer travel spending habits demand for leisure travel 
remains strong 
customer power has never been greater in the travel and tourism 
market developments in technology allow the customer to compare 
contrast and review their choices as well as interact with suppliers and 
fellow customers worldwide so whether customers are looking for 
unique holidays with bespoke services or simply want to combine a 
cheap flight with a hotel they have a wealth of brands and booking 
options from which to choose
our business model see page 15 aims to cater to the changing market 
trends to best serve these differing needs of our customers the tour 
operator model focuses on providing unique holiday experiences 
coupled with endtoend service while the online accommodation  
model focuses on providing a range of hotels across the globe in line  
with customer demand this diversity of offering means customers 
searching for traditional allinclusive packages multistop bespoke 
itineraries or worldwide city breaks can all book with us 
t he political climate 
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 airline are heavily regulated many of our 
lawmakers particularly in europe are becoming increasingly focused 
upon measures to protect customers
our political and regulatory affairs team seek to engage with legislators 
at an early stage in relation to all of those areas of regulation that might 
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 significant developments at the 
european level with the commission proposing new legislation in the 
area of air passenger rights and bringing forward proposals for reform 
of the package travel directive we have engaged consistently with the 
commission as they have developed these proposals and will engage 
over the coming 12 months with the european parliament and the 
council of ministers as they come to consider the suggested reforms 
in detail
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 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
t he sustainability challenge
travel and tourism accounts for 9 of global gdp and 6 of global 
exports the industry will continue to be one of the world’s fastest
growing sectors with emerging economies in particular seen as engines 
of such growth from 47 market share in 2012 and expected to  
reach 57 by 2030 tourism today is responsible for 1 in 11 jobs 
globally but also for 5 of global carbon dioxide emissions from  
a sustainable development perspective this poses a challenge – the 
growth of an industry highly dependent on fossil fuels and biodiversity 
in a world of finite natural resources
our businesses have been facing up to this challenge for over a decade 
for tui travel responding to these issues means bringing sustainability 
centre stage to build on the efficiency and resilience of our business  
and the services it provides our sustainable holidays plan is a  
major step forward in our journey towards providing special travel 
experiences whilst minimising environmental impact respecting the 
culture and people in destinations and bringing real economic benefit 
to local communities see our sustainable development section on 
page 26 for more information
reference united nations world tourism organisation unwto 2013  united nations environment programme unep 2011
3mrktxoverviewxstrucxbmxstrategv82 copyindd   10 13122013   1740 tour operator online accommodation
our 
footprint
market 
size  
coverage
market 
growth
our 
positioning
key trends 
 future 
outlook
11 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
 
str ate gic re port
 
business and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
our core markets consist of the uk sweden germany france 
belgium the netherlands austria poland switzerland  
canada between them they account for £498bn of global travel 
spend our four largest source markets of the uk  ireland 
germany france  sweden make up over 70 of this spend


the broad range of product and niche and international 
customer markets that apply to specialist  activity businesses 
make it difficult to quantify spend on these holidays but their 
geographical reach and popularity continue to increase
the total online accommodation market accounts for £87bn  
of global travel spend
within the accommodation wholesaler segment tui travel’s 
addressable market makes up about £17bn of this spend
the group also participates in the accommodation ota 
segment with focus in the uk asiapacific and brazil which 
accounts for £64bn of the total accommodation ota market
our core markets are projected to grow at a 3 cagr over the 
next five years the mainstream holiday market remains resilient 
and continues to see growth in a tough economic environment
the accommodation online travel agent ota market is 
projected to grow at a cagr of 96 over the next five years 
while the accommodation wholesaler market is expected to 
grow at a cagr of 78
we continue to be the number one tour operator in europe with 
either number one or two positions in each of our core markets
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 continues to lead the market in the b2b space 
with our accommodation ota business we are positioned strongly 
in the uk lateroomscom  asiapacific asiaroomscom and 
are building our presence in the l atin american market through 
malapronta brazil’s fourth largest online accommodation ota
customers are increasingly moving towards online channels to 
fulfil their travel needs and we expect this trend to continue into 
2014 and beyond we therefore remain committed to improving 
our online presence increasing our participation in social media 
and moving towards an onlinedriven company culture
demand for unique holiday experiences continues to see 
strong growth and with a diverse range of experiences on  
offer tui travel remains well placed
online accommodation continues to be one of the fastest 
growing segments in the leisure travel industry the recent growth 
is derived from the increase in online bookings coupled with 
strong demand from emerging markets online accommodation 
therefore remains a key area for tui travel where we look to 
consolidate our leadership position within the accommodation 
wholesaler market and build on our international position in 
the accommodation ota segment
source euromonitor
3mrktxoverviewxstrucxbmxstrategv82 copyindd   11 13122013   1740 acc whole saler
other
fr ance
germ any
nordic s
uk  irel and
acc ot a
inbound ser vice s
source m arket s bu sine ss l ine s
see more ‘how we do it strategic 
framework and business models’ page 14
sector
see page
 
15
see page
 
15
see page
 
15
mainstream sector 82
accommodation  
destinations sector 12 
specialist  activity 
sector 6 
underlyin g o per atin g 
profit mix by sector
tui t r avel p lc  
12 tui travel p l c annu al re po rt  acc ounts 2013
tt14  ar 2013  13122013  artwork tt 14  ar 2013  13122013  artwork
str ate gic re port
how we do it our structure
tui travel is organised and 
managed through three principal 
business sectors mainstream 
accommodation  destinations 
and specialist  activity this 
diagram sets out each sector 
what it comprises and some 
highlights
accommod ation  
 d esti nation s
t he accommodation  d estinations 
sector ad is a global provider of 
accommodation and inbound travel 
services it competes in fastgrowing 
areas of the travel industry through 
three business lines accommodation 
w holesaler accommodation o nline 
t ravel agent ot a and inbound 
services both accommodation 
w holesaler and ot a use the ‘o nline 
accommodation’ business model  
while inbound services straddles  
both business models ‘t our o perator’ 
and ‘o nline accommodation’ 
speci ali st  acti vity
t he specialist  activity sector 
sas comprises more than 100 
brands offering a wide range  
of unique travel experiences to 
customers across the globe from  
ski and sailing holidays to adventure 
travel and sports tours t he 
specialist  activity sector uses  
the ‘t our o perator’ business model
main stre am
t he mainstream sector makes up 
the largest part of our group in 
terms of financial performance 
scale scope and number of 
employees t his sector incorporates 
our familiar ‘power’ brands such  
as our tour operators with circa 
1800 retail stores across europe 
and six airlines consisting of 138 
aircraft throughout our key source 
markets we report via these source 
markets with the largest four 
reporting separately – the uk  
 ireland n ordic germany and 
f rance t he mainstream sector uses 
the ‘t our o perator’ business model 
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c u stomer number s
roomni ght s
key br and s
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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 thailand
uk brazil 
singapore 
and malaysia
spain turkey 
and egypt
italy france 
and usa
52m
passengers
16m
passengers
60m
passengers
16m
passengers
51m
passengers
252m
roomnights
128m
passengers
14m
customers
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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 but a huge market of individuals
our
values
through our global brand portfolio 
 travel expertise we are focused 
on delivering leisure travel 
experiences designed for our 
customers’ ever changing 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
16
page
18
page
20
page
22
page
24
• unique inclusive holidays
• tailormade holidays
• range and diversity 
 of hotel stock
• global destination and 
 source market coverage
content
1
• knowledge  expertise
• driving innovation
• knowledge  expertise
• driving innovation
• marketleading brands
• trusted brands – safety 
  security
• high levels of controlled 
 distribution – focus on online
• well known accommodation
 wholesaler 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
14 tui travel p l c annu al re po rt  acc ounts 2013
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str ate gic re port
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 that were refined last year 
when we set out our growth roadmap 
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 five strategic drivers’ 
section page 16
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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 but a huge market of individuals
our
values
through our global brand portfolio 
 travel expertise we are focused 
on delivering leisure travel 
experiences designed for our 
customers’ ever changing 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
16
page
18
page
20
page
22
page
24
• unique inclusive holidays
• tailormade holidays
• range and diversity 
 of hotel stock
• global destination and 
 source market coverage
content
1
• knowledge  expertise
• driving innovation
• knowledge  expertise
• driving innovation
• marketleading brands
• trusted brands – safety 
  security
• high levels of controlled 
 distribution – focus on online
• well known accommodation
 wholesaler 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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str ate gic re port
1 content
see adjacent
2 b rands  d istribution
see page 18
3 technology
see page 20
4 growth  scale
see page 22
5 people
see page 24
how we do it  
our five strategic drivers
over the next few pages we explore what our five strategic 
drivers mean for our tour operator and online accommodation 
businesses we will outline why they are important to us 
how we adhere to them operationally to ensure profitable 
performance how we know they are working and finally a 
selection of highlights from this past year there are distinct 
parallels across some drivers uniting the two business models 
while the focus can be considerably different for others
content c ase study 
strong unique 
products sensatori 
 sensimar 
sensatori and sensimar are two 
examples of our unique holiday 
offering operating out of the uk  
and german markets respectively  
to a variety of destinations worldwide 
both concepts provide affordable 
luxury to the customer demand 
for these unique holidays continues 
see kpis section on page 38 and 
this year a new hotel opened for both 
sensimar in andalucía and sensatori 
in turkey 2014 will see sensatori 
open in jamaica and sensimar  
open its first resort in mexico 
we continue to develop these  
unique concepts across all our source 
markets which helps differentiate  
us from our competitors 
1 c ontent
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o ur content range and diversity  
is attractive to our customers 
w hy
• an increasing propensity to travel due to global economic 
recovery creates an everexpanding market place  
of customers looking for a competitive range of 
accommodation product in terms of both geography  
and price
• travellers are increasingly exploring opportunities to 
research and book accommodation product online and  
thus they benefit from our large volume of wellpresented 
content and pricecompetitiveness
w hat are we doing about it
• ensuring that we have a wide variety of product in terms 
of quality destination and budget it is also important that 
our content is translated well digitally that it is rich inspiring 
and relevant 
• the emerging markets are increasingly important to our 
online accommodation businesses both as a source market 
and as a destination we have a clear strategy for targeting 
these markets with particular focus in our fiveyear plan 
on further expansion in the middle east asia pacific 
americas and africa
h ow do we know this is working
• over the past year accommodation wholesaler our b2b 
business ttv has grown in the key regions of middle east 
asia pacific americas and europe excluding uk spain and 
portugal by over 30 
• the improvement in our accommodation ota hotel 
content is showing early positive signs especially with the 
use of new ‘unique’ images on malaprontacom which has 
led to a positive impact in conversion
2013 h ighlights
• our accommodation wholesaler business has seen a 16 
increase in hotel inventory in fy13 
• the brazilian accommodation ota malapronta has seen a 
110 increase in its hotel portfolio in the past year across 
the main domestic destinations of sao paulo rio de janeiro 
and curitiba
u nique content forms the backbone  
of our t our o perator strategy
w hy
• unique content is tailored to the differing needs of 
customers ensuring that we offer the right product  
to the right customer
• provides valueadded services and features which 
command a margin premium over commodity products
• books early when compared to commodity products enabling 
us to manage our capacity and yield more effectively
• l eads to higher customer satisfaction and an increase  
in repeat bookings
• adds value to our brand – ma kes us identifiable and clarifies 
our brand proposition as an endtoend travel provider
• finally as all of our unique content is exclusive to 
tui travel it also helps create effective barriers to entry 
for our competition
w hat are we doing about it
in mainstream 
• continuously reviewing our existing concept portfolio 
adapting where appropriate for different source markets
• developing new hotel concepts which are exclusive to our 
brands and in line with customer demand
• l ooking at concepts from a holistic paneuropean perspective 
which would be suitable for mainstream as a whole
in specialist
• maintaining our focus on providing unique experiences 
through our range of brands to cater to a wide range of 
customer needs 
• in fy13 hayes  jarvis launched a tailormade offering 
providing seamless service to customers wanting bespoke 
itineraries to places such as india south africa and l atin 
america 
h ow do we know this is working
• demand for unique holidays remains strong in fy13 
unique holiday sales increased to 69 fy12 65 of total 
sales across mainstream see kpis
• our unique hotels continue to register the highest customer 
satisfaction and retention scores across the whole portfolio
2013 h ighlights
• in the uk the couples proposition continues to grow with 
an additional 12 properties added to the collection in fy13 
this brings the total number of units to 38 and underscores 
the confidence we have in our unique products 
• suneoclub – a pan mainstream allinclusive 3 concept 
went on sale at the end of july for summer 2014 the 
concept currently boasts nine hotels across greece spain 
and turkey and is a prime example of tui travel source 
markets working together 
• our specialist brands also saw some exciting developments 
sovereign launched the ‘by sovereign’ concept whereby they 
forged partnerships with key hoteliers to place inhotel sales 
teams with specific expertise as well as rich and visible 
online content driving considerable growth
t he brazilian 
accommodation ot a 
malapronta has seen a 
110 
increase in its hotel 
portfolio in the  
past year
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str ate gic re port how we do it our five s trategic drivers
2 brands  d istribution
br and s  d istribution c ase study 
offering more tailored products
across the nordics there are a total of 10 nextgeneration stores that are proving that a 
modern highstreet customer experience can complement an onlinesales focus we know 
that this combined strategy is working as a result of the exceptional performance of the 
nordic countries – 11 increase in underlying operating profit for fy13
nextgeneration stores exist to inspire customers giving them a modern preholiday 
experience in which staff play a more advisory role rather than the traditional focus on  
sales in this way colleagues work with customers to understand their needs before offering 
advice as to locations that fit their criteria stores feature modern technology world maps 
and virtual brochures on large screens around the shop for customers to peruse at will 
simultaneous to this online distribution is at an alltime high in the nordics up two 
percentage points from 2012 to reach 67 in 2013 – demonstrating that our nextgeneration 
stores work with rather than competing against online points of contact 
for more information about segmental performance please see page 59
thomsoncouk  
awarded the 
no 1 
‘socially d evoted’ 
business in the uk 
award by social bakers 
for the level of social 
customer service
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we remain committed to our focus on direct distribution and being online driven 
w hy
• increasing numbers of european travellers are researching  
and booking their travel via digital channels we need to ensure 
we keep in step with our consumers’ evolving behaviour
• one of the reasons cited for not booking online is the perceived 
lack of personal service we are working on personalising our 
interactions with customers so we can learn more about what 
they are looking for what they have booked in the past and 
what interests they have this in turn informs how we develop 
and tailor our product and service and how we can market to 
and retain these customers more effectively
• having strong recognisable brands plays a key role in the online 
world helping to increase direct traffic to our websites which 
generally tends to have a higher conversion rate
• focusing our distribution on direct channels reduces our reliance 
on thirdparty agents and allows us to form a direct relationship 
with the customer this also drives down our distribution costs
• direct distribution allows us to have greater control over our 
brands and how they are marketed and sold the clearer we 
communicate about our brands and what they offer the more 
likely we are to develop loyal customers who will become 
ambassadors helping us acquire new customers
w hat are we doing about it
• tui travel is focused on b eing an ‘onlinedriven’ business  
providing customers with an easy and inspiring online 
experience ‘onlinedriven’ refers to the entire customer 
journey inspiration planning booking predeparture  
the holiday experience and returning home and sharing
• 2013 saw the creation of the mainstream distribution  online 
team providing support to all source markets and sharing best 
practice on digital matters retail operations crm and ancillaries 
this has led to the standardisation of several processes and the 
proliferation of best practice across markets with immediate 
financial benefit
• a large portion of our market continues to value the faceto
face service of a travel agency we are working on transforming 
the traditional agency into the nextgeneration retail concept 
store to combine the expertise of our people with the latest 
technology as we move into a true multichannel world
• our specialist businesses leverage a strong brand portfolio 
offering everything from adventure and sailing holidays to 
private jet tours we are investing in our online platforms to 
enhance booking and search functionality and provide our 
customers with inspirational content to showcase our products
h ow do we know this is working
• online sales across the mainstream sector are steadily increasing 
in fy13 online bookings made up 35 fy12 33 of our holiday 
sales and we have clear strategic plans and targets in place  
to drive online sales further in all source markets see kpis 
• all our mainstream businesses have their core websites mobile 
enabled to take advantage of the growing proportion of their 
online traffic coming through tablets and smartphones
2013 h ighlights
• tui nordic has opened new retail concept stores across its four 
markets which act as a branding and marketing channel supporting 
online sales as well as being a sales channel in their own right
• the uk opened the first ret ail concept store in the bluewater 
shopping centre the shop includes nextgeneration design 
principles featuring usergenerated content digital billboards 
and interactive features
• our mainstream businesses have over 25m facebook fans  
with an industry leading rate of engagement thomsoncouk  
was awarded the no 1 ‘socially devoted’ business in the uk  
by social bakers for the level of social customer service
• within our specialist portfolio our ski brand crystal is increasing 
its direct distribution by reducing reliance on thirdparty agencies 
and introducing price parity across online and offline channels
d istribution is key to the successful performance of our o nline accommodation businesses
w hy
• as an ‘onlineonly’ business it is critical we provide our 
customers with an effective and easytouse search and booking 
experience in this arena having excellent digital presentation 
and user experience is as important as good content this 
means that the details – website response time usability of  
the interface etc – are essential furthermore consumers are 
increasingly expecting a seamless experience across all devices 
– so the mobile and tablet experience should match the 
traditional desktop experience
• maintaining our reputation is important to our accommodation 
wholesaler brands as the business is built on retaining 
customers who are loyal because of the service and product 
associated with our brand name
• growing our customer base in the competitive ota market 
requires a combination of good brand awareness and strong 
online visibility in organic and paid search together with a clear 
ecrm strategy to drive customer loyalty and repeat bookings
w hat are we doing about it
• our accommodation wholesaler business is currently building a 
large client base to grow intraregional and domestic penetration 
mainly in the middle east asia pacific americas and africa
• in accommodation ota our focus is to build on our brand 
positioning of l ateroomscom in the uk and expand in the 
emerging markets through asiaroomscom and in brazil with 
the acquisition of malaprontacom 
h ow do we know this is working
• accommodation wholesaler saw a 50 growth in the number  
of xml links between their inventory and travel agencies’ 
booking systems with half of these being in the middle east  
and asia pacific
• lateroomscom was the most recognised accommodation  
ota brand in the uk during fy13 with 63 brand awareness 
2013 h ighlights
• our accommodation wholesaler travel agency distribution 
channel bedsonline has seen an yearonyear increase of  
60 in travel agent bookings
• we have launched the first stage of our ecrm personalisation 
strategy in our accommodation ota businesses in order to 
grow new and repeat bookings 
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3 t echnology
technolo gy c ase study 
providing seamless interaction  
for our customers
in july we launched the awardwinning tui digital assistant in the form of the mythomson 
mobile app which allows customers to access information about and plan their holidays from 
the moment they book through until their departure and even whilst on holiday the app 
includes everything from flight information and luggage allowance details to maps to help 
customers plan the best route to the airport the personalised holiday countdown can also 
be shared via social networks such as facebook and twitter
the mythomson iphone app was the most popular free travel app shortly after launch and 
had over 180000 downloads in its first few months following release post year end we have 
rolled out the tui digital assistant in the german source market with the launch of the 
‘meine tui’ mobile app and will continue this roll out to source markets across the group 
one of the main advantages of this technology is that we have one development cost that 
benefits all our markets 
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t echnology underpins the distribution  
and content pillars of our strategy
w hy
• fastchanging customer demands require us to have  
a modern and flexible technological platform
• it enables us to best showcase our product and 
communicate with and sell to our customers effectively 
• by implementing robust backend finance and reservation 
systems we can support business operations and also 
provide reliable and actionable management information
• having an efficient technology infrastructure allows us to 
drive efficiencies and therefore provides further value to 
our customers
w hat are we doing about it
• within mainstream we are in the process of upgrading our 
web frontend reservation and finance systems across all 
source markets these technology upgrades will provide 
our websites with new search functionalities improved 
personalisation and richer content as well as enhanced 
mobile capability as our customers increasingly research 
and book their holidays on mobile devices
• our specialist businesses have made good progress in 
consolidating their finance and reservation systems to 
leverage our scale across multiple brands and continue on 
their journey of standardisation while balancing the varied 
requirements of the different holiday experiences they offer
h ow do we know this is working
• the thomson  first choice websites have recently  
gone through a major frontend overhaul this includes 
incorporating broad search flexible date departure and 
destination options selfvalidating search and filtering  
into the holiday search process this has already resulted  
in a vastly improved ‘looktobook’ ratio
2013 h ighlights
• in the spring we launched the mythomson digital assistant 
app in the uk – with plans to launch in other markets soon 
this provides a onestop shop for booked customers to 
purchase excursions create a holiday checklist and review 
resort and destination information upon launch it was 
ranked as the number one free travel app in the apple 
store and downloads to date stand at over 180000
investment in t echnology is essential  
for our online based accommodation  
businesses 
w hy
• one of the success factors for accommodation ota is the 
user experience on the website in a competitive market  
it is what keeps a customer on the website and converts 
them from looking to booking 
• to ensure smooth back and front office operations we 
need to have efficient finance and reservation systems 
this also provides us with valuable management 
information about our customers’ preferences
• our customers range in type from businesses to 
individuals and are based all over the world we need to 
ensure we have the latest technology platforms that can 
adapt to the evolving needs of this broad customer base 
w hat are we doing about it
• both accommodation wholesaler and accommodation 
ota businesses are supported by efficient it platforms
• accommodation wholesaler operational systems are being 
upgraded in order to be able to continue improving service 
delivery to its global customers
• in our accommodation ota business we are continuing to 
invest in a new platform to support our growth strategy 
h ow do we know this is working
• accommodation wholesaler’s inhouse platform is one 
of the most robust flexible and userfriendly in the 
industry allowing for quick connectivity with hotel suppliers 
as well as our customer base of travel agencies tour 
operators and otas
• accommodation ota’s platform with the new onsite  
search and improved customer experience is providing 
more relevant search results and delivering site speed 
improvements
2013 h ighlights
• accommodation wholesaler’s online platform recorded  
on average 15bn searches per month in fy13 room  
nights grew by 16 see kpis on page 38
• in fy13 mobileoptimised websites were delivered  
for l aterooms asiarooms and malapronta 
in fy 13 
accommodation 
w holesaler’s online 
platform recorded  
on average 
15bn 
searches per  
month
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4 growth  scale
growth  sc ale c ase study 
consolidating our marketleading position
the greek island of kos is a prime example of how the mainstream sector is utilising its 
potential for growth with three of our largest source markets reporting substantial successes 
on the island 
kos has become one of tui netherlands’ most successful destinations reporting growth  
of 13 yearonyear the market share of 35 of overall dutch passengers to the island  
can mainly be attributed to differentiated products – of which puravida and kidsclubs are 
the most successful whilst its share of exclusive accommodation in kos has risen to 33 
l ast summer tui nordic relaunched kos as a destination through an extensive lineup of 
differentiated concepts the brand was the market leader for trips to kos in summer 2013 
and received consistently high customer satisfaction 
over the past three years our uk  ireland mainstream programme to kos has grown by 
48 this coupled with the success of tui nordic and netherlands highlights how we are 
successfully expanding our business through a wellexecuted strategy
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o ur scale and potential for growth  
make us unique
w hy
• no other leisure travel business operates in as many 
markets and has as many customers as we do the travel 
market nonetheless remains highly dynamic and competitive 
and it is therefore essential to seize new growth 
opportunities and maintain our marketleading positions 
• l everaging our scale and driving further synergies and 
cost efficiencies also enables us to provide added value 
to customers
w hat are we doing about it
• 2013 saw us approach scale in a different way with the 
creation of the mainstream board
• this gave focus to our efforts to leverage our scale across 
all source markets to consolidate our marketleading position 
and grow the number of customers travelling with us
• growth in new markets remains an important area of focus 
for tui travel our russian tour operator business has 
given us a position in this market and we continue to seek 
opportunities in markets like brazil and china
• in our specialist  activity sector we continue to review 
opportunities to leverage our successful brands in new 
and existing source markets
h ow do we know this is working
• in 2013 we successfully delivered on our profit growth 
roadmap of 7 to 10 as set out at the beginning of the 
year we are confident in continuing this performance
2013 h ighlights
• as a result of the formation of the mainstream board it was 
decided to consolidate our mainstream purchasing and digital 
teams as well as combining the efforts of our destination 
services team in resort this has allowed us to maximise 
economies of scale and will continue to drive further 
efficiencies see ‘our people’ on page 34
• in may we further enhanced our offer with the delivery of 
the boeing 787 dreamliner this has meant we have been 
able to extend our longhaul programme and vastly 
improve our customers’ flying experience
• following a shareholder meeting in july a proposal was 
accepted to purchase 60 boeing 737 max aircraft showing 
the confidence and faith in the company’s ability to grow
• our specialist  activity sector underwent a restructure  
in late 2012 which led to the creation of two management 
portfolios grouping marine specialist holidays group  
and ski together and uniting education north american 
specialist and sport the aim was to facilitate better 
sharing of expertise and knowledge across divisions 
scale is a critical success factor for  
any online accommodation business
w hy
• in a pricedriven lowermargin business it is imperative for 
us to achieve high volumes and leverage common platforms 
and economies of scale in order to gain competitive 
advantage
w hat are we doing about it
• tui travel is a firm market l eader in the accommodation 
wholesaler market with operations in over 100 countries 
we are continuing to follow our strategy of consolidating 
our marketleading position by expanding in existing 
destinations whilst focusing on our development in both new 
source markets as well as new destinations with particular 
focus on asia l atin america and africa
• within the accommodation ota division we cover three 
attractive markets
 l aterooms has maintained its position as number 2  
in the accommodationonly ota space in the uk we  
aim to continue delivering growth by developing new 
distribution channels and new customer segments in 
this market
 asiarooms is now an established and growing brand  
in the asiapacific region
 l ast year we acquired malaprontacom brazil’s fourth 
largest accommodationonly ota which helps tui travel 
establish a presence in this fastgrowing and lucrative 
market
h ow do we know this is working
• our accommodation wholesaler business has experienced 
30 yearonyear ttv growth in emerging source markets 
americas and asia
2013 h ighlights
• in accommodation wholesaler global efficiencies were 
achieved by managing operations though centralised global 
and regional platforms a good example of this is moving 
from 24 finance centres to three global shared service 
centres
• our accommodation ota business is continuously working 
on deviceoptimised sites and apps to meet growing 
demand 
in 2013  
we successfully 
delivered on our profit 
growth roadmap of 
710 
as set out at the 
beginning of  
the year
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5 people
peo ple c ase study
the big picture
the tui travel big picture was introduced in november 2012 to help bring to life our group 
strategy vision and strong growth plans in a dynamic and engaging way
supporting our open and honest culture the big picture is designed to help drive colleague 
understanding creating a dialogue about the path that we’re on and the role each of us has 
to play in the future success of our business working together to achieve our goals
using an image to convey strategy and direction helps to make it more clear consistent and 
memorable in the uk  ireland more than half of our people could identify all three of our 
business goals unprompted following a conversation about the big picture before this only 
20 could mention one of the business goals
for more information about the big picture please see the ‘our people’ section on page 34 
str ate gic re port how we do it our five s trategic drivers
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str ate gic re port
 
business and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
people are a key differentiator  
at tui t ravel
w hy
• at all levels of our business the experience knowledge and 
customer focus of our employees is what helps us hold our 
marketleading position
• the holiday experience itself and the resulting satisfaction 
and loyalty of our customers depends on their facetoface 
interaction with our employees and the service they receive
w hat are we doing about it
• investing in the training and development of our people to 
ensure that they have the right skills and expertise to provide 
us with a real competitive advantage
• communicating with colleagues regularly honestly and 
openly whether it be informal blog posts from the board  
or organised ‘town hall’ meetings providing updates on  
the strategy and fiveyear plans of the business
• enhancing our existing development programmes for  
senior managers and executives as well as adding a new 
programme for junior managers all three programmes are 
modular and are designed to educate and share ideas on 
trends as well as share knowledge and increase visibility 
across the group to encourage mobility and synergy
• our international graduate l eadership programme 
continues to attract high calibre globalminded individuals 
interested in and suited to careers in our dynamic 
fastpaced industry see ‘our people’ on page 34
• halfyearly talent reviews ensure that we monitor the 
talent and capabilities within our organisation and have 
clear succession plans in place for business critical roles
• the l eadership  development team has been centralised 
to provide a more holistic view of the business and allow 
for talent recognition and development support across  
all sectors and functions
h ow do we know this is working
• we use colleague engagement and employee net promoter 
score nps as a barometer of employee sentiment 
current results show tui travel scoring well on both counts 
and we have targets in place supported by cohesive plans 
to exceed current performance
2013 h ighlights
• we added a new development programme called perspectives 
aimed at talent in the early stages of their career see ‘our 
people’ on page 34
• our new internal careers portal launched in july bringing 
together tui travel’s global vacancies for the first time 
increasing the visibility of opportunities available across  
our group
people are the key driver of any  
online business where agility speed  
and innovation are essential elements  
of success
w hy 
• attracting and retaining talent is increasingly gaining 
priority in a market characterised by rapid changes and 
high competition
w hat are we doing about it
• building a strong brand proposition to acquire and keep  
the best online 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 mobile 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 our global growth ambitions
h ow do we know this is working
• similar to our tour operator businesses we measure levels 
of colleague engagement and nps to gauge employee 
sentiment on matters such as senior leadership direction 
career development and daytoday job satisfaction and 
ensure that we score highly
2013 h ighlights
• high number of participants from the sector in group 
management development programmes such as 
perspectives and horizons
in fy 13  
we enhanced  
our collection of 
development 
programmes adding 
perspectives aimed  
at junior  
management
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of co2 emissions per revenue 
passenger kilometre across 
tui travel airlines – making 
our airlines some of the most 
fuel efficient in europe
26 tui travel p l c annu al re po rt  acc ounts 2013
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how we do it sustainable development
strategic repo rt
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 however from a 
sustainable development perspective the industry’s high 
dependency on fossil fuel natural resources and biodiversity 
poses a challenge one which our businesses have been 
addressing for over a decade 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 is widely acknowledged in 
fy13 we were pleased that our performance was recognised as follows
• for the sixth consecutive year tui travel was featured in cdp’s 
climate disclosure leadership index cdli and was ranked in 
the top 10 of the ftse 350 for o ur approach to carbon disclosure 
and governance tui travel was the only travel  leisure company 
to feature in the 2013 cdli and the only company to feature for the 
sixth year running  wwwcdprojectnet
• tui travel was recognised by carbon clear for its approach to 
carbon reporting ranking the company joint sixth 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 
• for the third consecutive year tui travel was featured in the 
robecosam sustainability yearbook which highlights the best 
performing 15 of companies who submit data to the dow jones 
sustainability index the largest 2500 companies globally  
 wwwsamgroupcomyearbook 
for further details on awards and our latest sustainable  
holidays report see  wwwtuitravelplccomsustainability
governance
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 the tui travel plc board 
sponsor for sustainable development 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 the group 
the role of group sustainable development is to drive change towards 
a more sustainable business and to forge leadership in our industry 
sector the team works closely with other parts of the group 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 
risk management
policy and mitigation for groupwide risks relating to sustainability are 
facilitated by group risk management and sustainable development 
with responsibility for managing such risks also shared by the 
businesses themselves increasing legislative and societal demands on 
an organisation like ours require 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 plc’s carbon footprint
• actions of colleagues need to uphold tui travel’s sustainable 
development policy
• actions of suppliers need to uphold tui travel’s environmental 
and social supplier standards
• to understand better the socioeconomic impacts of tourism
• concern over damage to and quality of destinations due  
to ecosystem degradation and climate change
• growing expectation among our customers regarding 
sustainability issues
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
fy13 highlights…
6 years
tui travel is the only 
company to be listed  
in cdp’s climate disclosure 
leadership index for  
six consecutive years
38m
customers stayed  
in hotels with sustainability  
certifications
4sustainablexdevelopmentv46 copyindd   26 13122013   1744 co l l eagu es                                                          cu sto mers
carbo n                                                        destinatio 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 
tech no l o gy              gro w th  scal e                   co ntent
strategic driv ers
o nl ine driv en               co st efficiency
peo pl e                                   brands  distribu tio n
v isio n
making trav el 
experiences special 
whilst minimising 
environmental impact 
respecting culture  
and people and bringing 
economic benefits to 
communities
27 tui travel p l c annu al re po rt  acc ounts 2013
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strategic repo rt
 
busin ess an d fin an cial rev iew
 
directo rs’ repo rt
 
fin an cial statemen ts
 
shareho lder in fo rmation
our threeyear sustainable holidays plan was launched in 2012 and marks our journey towards 
a more sustainable future it reflects significant integration of environmental and social 
principles into the way we do business – 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 our colleagues and 
customers in sustainability our sustainable holidays plan aligns with our corporate strategy
for further details visit our latest  
sustainable holidays report  
 wwwtuitravelplccomsustainability
our sustainable holidays report 2013  
is due out in spring 2014
o ur sustainable holidays plan 201214
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go al by 2015… 
we will deliver 10 million 
‘greener and fairer’ holidays 
we will measure this by the number of 
customers we take to hotels with credible 
sustainability certifications from 2012  
to 2014 eg sustainability certifications 
working with the global sustainable 
tourism council such as travelife and 
international environmental management 
standards such as iso 14001 and emas
travel and tourism accounts for 9 of the world’s gdp  
and 6 of global exports u nwto  2013 tourism also 
accounts for 1 in 11 jobs globally u nwto  2013 and is the 
main source of foreign exchange in onethird of developing 
countries unep  2011 the leisure t ravel industry can have 
both positive and negative impacts on communities and  
the natural environment – the challenge is how to manage 
these impacts for the greatest good
o ur business case
we want our holidays to benefit local livelihoods and protect the 
environment and in doing so maintain the quality viability and 
desirability of our products for years to come we’re working with 
stakeholders in destinations around the world to make this a reality
tui travel has a global supply chain and our suppliers are the driving 
force for improving our sustainability performance in our destinations 
each of them plays a significant role in managing our impacts on the 
local community economy and environment 
we are committed to influencing more hotels to achieve credible 
sustainability certifications so as to be assured that our suppliers are 
making continual sustainability improvements this not only improves 
our sustainability performance but also benefits our suppliers
depending on the region energy costs account for between 5 and 
15 of a hotel’s turnover bluecontec 2012 so reducing energy 
use can have a significant impact on the bottom line we’re already 
helping many of our hotels by training them on ecoefficiencies 
which ultimately delivers better value for money for our customers 
engaging in sustainability can help hotels differentiate their product 
meet growing customer demand and protect their destinations  
there is also evidence that our most sustainablymanaged hotels are 
those which are delivering higher quality and customer satisfaction
we are involved in hundreds of projects that support communities 
and reduce environmental impacts where we can we focus on the 
destinations where we send the most customers and where we believe 
we can make the greatest difference in fy13 this included brazil  
cape verde cyprus dominican republic egypt greece kenya 
mexico spain thailand tunisia and turkey 
fy13 h ighlights
• we featured over 1200 hotels with sustainability certifications
• we took 38 million customers to hotels with credible sustainability 
certifications
• we organised many sustainability supplier workshops for example 
in the costa del sol italy kos madeira mallorca and rhodes
• tui uk  ireland worked with bluecontec and responsible 
hospitality partnership to provide their differentiated hotels with 
dedicated environmental consultancy o f the circa 40 hotels who 
participated reductions in energy and water consumption have 
already generated cost savings of nearly euros 2 million to date
• tui nederland was the first major travel company to be certified 
to the new travelife standard for tour operators
• we were actively involved in the development of the industry’s first 
ever global welfare guidance for animals in tourism produced  
by abta – the travel association and launched in june 2013 tui 
travel provided support for the guidelines at a launch event at the 
eu parliament in brussels and we continue to audit our suppliers 
against animal welfare standards
• tui deutschland has partnered with giz to support a major project 
in tunisia in year two of the project seminars took place with hotel 
managers on sustainability and equal opportunities for women 
hotel staff were trained on service quality and customer satisfaction 
and linkages created between local women artisans and hotels
destinations 
370
over 370 hoteliers and  
other stakeholders attended 
our supplier sustainability 
workshops in fy13
1200 
we featured over  
1200 hotels which had 
sustainability certifications
strategic repo rt ho w we do it
for further details visit our latest sustainable development report  wwwtuitravelplccomsustainability
sustainable development
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strategic repo rt
 
busin ess an d fin an cial rev iew
 
directo rs’ repo rt
 
fin an cial statemen ts
 
shareho lder in fo rmation
h uman rights
tui travel plc acknowledges the un guiding principles on business 
and human rights and has many policies and initiatives in place to 
identify prevent mitigate and account for how we are addressing  
key human rights issues we continue to work with stakeholders to 
understand better and respond to these issues 
we have a group employee code of conduct which covers a wide 
range of human rights including discrimination and working conditions 
and commits tui travel to upholding the principles of the u n global 
compact the company also has hr policies see page 34 health  
 safety policies see page 52 an antibribery  corruption policy 
see page 71 and a whistleblowing policy see page 71 addressing 
key human rights tui travel’s mainstream businesses are signed up  
to the international child protection code and support several child 
protection projects
in 2013 tui travel launched a new supplier code of conduct for all 
suppliers including hoteliers the code 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 and bribery and corruption 
we are actively encouraging our hotel suppliers to implement credible 
sustainability certifications the majority of businesses across the 
group promote travelife which incorporates the principles of the 
ethical trading initiative base code travelife recognises hotels which 
care for the environment their employees and the local community 
we have been working with travelife to strengthen criteria around 
human rights and these will be launched in 2014 we are also working 
with abta and industry peers to address key concerns on human 
rights issues collectively
to read our policies visit  wwwtuitravelplccom
• jetair and jetairfly received the sustainable tourism award at the 
travel magazine travel awards in 2012
• in november 2012 tui travel formed a threeyear partnership with 
the german government development agency giz the code and 
other industry partners to focus on child protection in thailand 
• hotelbeds and blue travel partner services officially partnered  
with unicef in the dominican republic to protect children from 
exploitation
• tui nederland won the ‘o verall winner’ award and the ‘best for 
child protection’ award at the 2013 world responsible tourism 
awards this achievement came as a result of their longterm 
commitment to the cause in implementing colleague training raising 
awareness amongst travellers and a project in brazil which helps 
vulnerable adolescents find a job in the tourism industry intrepid 
travel was also ‘highly commended’ for its work on child protection 
over the last 20 years
• we aim to influence the sustainable management of key destinations 
we have been working with the travel foundation in cyprus which 
includes the integration of minimum sustainability standards into 
the island’s national hotel quality rating system and in cape verde 
where we have helped to set up a destination council to tackle 
sustainability issues using a multistakeholder approach 
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 
the sustainable management of destinations examples include  
abta – the travel association the born free foundation deutscher 
reiseverband dutch association of travel agents  tour o perators 
giz global sustainable tourism council the tour o perators initiative 
and the travel foundation
for further details visit our latest sustainable development report  wwwtuitravelplccomsustainability
a decade o f coll abo ratio n
tui travel has been working with the travel foundation a sustainable tourism charity since it launched in 2003 
during this decade of partnership the travel foundation has supported us on our sustainability journey providing  
a wide range of resources and expertise and collaborating with the business on strategic projects that have helped  
it address the sustainability issues facing the travel and tourism sector we are the largest industry supporter and 
donor to the travel foundation which over the last 10 years has trained more than 10000 local people in skills 
to boost tourism reduce environmental impacts and improve customer experience – and also trained 800 hotels 
to reduce energy water and waste we have raised over £4 million since 2003 and we won the contribution to 
the community award at the 2013 ttg travel awards for our outstanding work with the travel foundation 
 wwwthetravelfoundationorguk 
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go al by 2015… 
we will operate europe’s most 
fuelefficient airlines and save 
more than 20000 tonnes of carbon 
from our ground operations 
we will measure this through tui travel 
airlines’ average carbon emissions per revenue 
passenger kilometre co 2rpk and co 2 saved 
from our major premises retail outlets brochure 
paper production differentiated hotels and 
fleets of vehicles against fy11 baseline
carbon
76
tuifly nordic thomson 
airways and tuifly are  
all iso 14001 certified –
covering 76 of our aircraft
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
travel and tourism are responsible for around 5 of global 
co
2
 emissions unep  2011 as a leading leisure travel 
company our challenge is to prepare for a low carbon future 
by further reducing our environmental impacts and helping 
our suppliers do the same carbon management is a 
priority for tui travel our airlines’ carbon efficiency is one 
of the company’s key performance indicators see page 
38

 our carbon management strategy covers aviation 
hotels major premises retail shops water transport and 
ground transport emissions 
o ur business case
it makes sense both from a business and from an environmental 
perspective for us to embed carbon management into our key 
business practices 
predictable weather comfort and an attractive local environment are 
critical factors in the quality of the holiday experiences we provide for 
our customers climate change could negatively impact on all three of 
these factors and is therefore a business risk for tui travel see our 
2013 cdp submission for further details
we have also identified climate changerelated regulation as a material 
issue for the company see page 51 we monitor and are prepared for 
regulatory proposals on climate change – such as the uk government’s 
mandatory greenhouse gas reporting requirements see below
o ur focus on energy and fuel efficiency allows us to make significant 
cost savings across tui travel improved management of energy 
natural resources and fuel across our operations has saved £16 million 
in fy12
we aim to operate europe’s most fuelefficient airlines and to continue 
to invest in cutting edge aviation technology in fy13 tui travel 
airlines’ total carbon emissions were 5101532 tonnes emissions  
from aviation make up approximately 90 of our company’s carbon 
footprint our target is to reduce tui travel airlines per passenger 
carbon emissions by 9 by 2015 baseline 2008 in fy13 we met this 
target reducing our average per passenger carbon emissions by 93 
against our baseline
we have developed our position on aviation and climate change in 
partnership with key stakeholders whose insight and guidance have 
helped us to identify how we can play a leading role in campaigning 
for smarter carbon legislation 
read our ‘campaigning for smarter carbon legislation’  
article here  wwwtuitravelplccomsustainability  
and watch our  ‘transparency in carbon reporting’ video
fy13 h ighlights
• co 2 per revenue passenger kilometre rpk across tui travel 
airlines of 707g vs 730g in fy12 an improvement of 32 – 
making us one of the most efficient airlines in europe and beyond 
• tuifly was ranked the most climateefficient charter airline 
worldwide for the second year in a row and most climateefficient 
airline in the world with more than one million passengers in the 
2013 atmosfair airline index thomson airways was ranked second 
most climateefficient airline for short haul flights
• tuifly achieved iso 14001 certification an international 
environmental management standard
• 94 of our aircraft are now fitted with fuelsaving blended  
winglets reducing fuel burn by up to 5
airl ine gh g emissio ns data fo r perio d 1 oct o ber 2012 – 
30 september 2013 intensity rel ativ e metric
tui travel airlines
gco
2
revenue 
passenger  
km
gco
2
erevenue 
passenger 
km
arkefly 735g 743g
corsair 805g 814g
jetairfly 739g 747g
thomson airways 695g 702g
tuifly 655g 662g
tuifly n ordic 631g 637g
tui travel airlines average 707g 714g
 for full details on 
the methodology 
used to calculate  
our intensity  
metrics and  
pwc’s assurance 
report please visit 
  
wwwtuitravelplc
comsustainability
carbon
strategic repo rt ho w we do it
sustainable development
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tui travel airlines 
and aviation 884
water transport 44
ground transport 05
major premises 05
differentiated hotels 53
other indirect emissions 
including business 
travel by air 08
fy13
31 tui travel p l c annu al re po rt  acc ounts 2013
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strategic repo rt
 
busin ess an d fin an cial rev iew
 
directo rs’ repo rt
 
fin an cial statemen ts
 
shareho lder in fo rmation
breakdow n o f tu i trav el ’s carbo n foo tprint
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
• tui travel airlines will be the first in europe to use the new 
innovative split scimitar winglets reducing fuel burn by an 
additional 2 modified aircraft will begin flying from early 2014
• we made a commitment to purchase 60 boeing 737 max aircraft 
with improved fuelefficiency 2018 delivery onwards
• thomson airways took delivery of their first batch of boeing 787 
dreamliner aircraft which are forecast to emit 20 less co 2  
per passenger kilometre than comparable aircraft today
• ultramar our largest ground transport company has installed 
satellite navigation in all vehicles to monitor fuel consumption 
distances travelled driver performance and route optimisation
• we implemented a webbased sustainability data software solution 
this software enables us to further improve data accuracy 
provide advanced monitoring and reporting tools and increase 
data collection frequency
• sawadee one of our dutch tour operators received the best carbon 
reduction initiative award in november 2012 at the worl d responsible 
tourism awards for identifying effective ways of reducing the carbon 
footprint of their trips 
• sunsail achieved certification by the british standards institute 
bsi to the sustainable event management iso 20121 standard 
which recognises organisations that maximise economic social and 
environmental opportunities at their events
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 algaeparc in the 
netherlands aviation initiative for renewable energy in germany 
aireg cdp forum for the future sustainable aviation fuel users 
group safug and sustainable aviation in the uk
greenhouse gas emissions
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 
for the first time tui travel is disclosing carbon dioxide equivalent 
co 2e data for both its absolute and relative eg airline emissions 
historically we have just disclosed co 2 emissions co 2e refers to co 2 
and the other five kyoto ghgs methane ch 4 nitrous oxide n 2o 
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
2e and co 2 data for fy13
  an approximate figure of group savings that have been tracked gross of any upfront investments 
required to achieve those savings in 2012 part of previously identified cost savings
  the company’s auditors pricewaterhousecoopers pwc have verified the carbon intensity 
metrics displayed in the table on page 30 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
glo bal g h g emissio ns data fo r perio d  
1 oct o ber 2012 – 30 september 2013 
absolu te figu res
source
co
2
 t 
tonnes of  
carbon dioxide
co
2
e t  
tonnes of carbon 
dioxide equivalent
total scope 1 
emissions 5936608 5999276
total scope 2 
emissions 303759 305230
other scope 3 
emissions 52084 52271
grand total 6292451 6356777
scope 1 covers 
direct emissions
 scope 2  3 
covers indirect 
emissions
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for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
colleagues
our colleagues are crucial to delivering our commitments on 
sustainability we want them to be engaged knowledgeable 
and enthusiastic about sustainability and we believe that 
this will drive recruitment and loyalty to tui travel
o ur business case
research shows that a company’s reputation is increasingly important 
to today’s employees who seek synergy between their own and their 
employer’s values our hr colleagues regularly hear from new starters 
that tui travel’s sustainability performance influenced their choice of 
tui travel as a prospective employer
one of tui travel’s core values is responsible leadership which is 
increasingly embedded into how we measure behaviour and performance 
research carried out by the nonprofit organisation net impact in 2012 
shows employees who have the opportunity to make a direct social 
and environmental impact through their job report higher satisfaction 
levels than those who do not by a factor of 21 
we communicate regularly about the progress we’re making on securing 
a sustainable future for our industry a key challenge is to make our 
sustainable holidays plan accessible and practical for all colleagues 
to this end we embed sustainability in recruitment material our intranets 
newsletters inductions blogs by senior managers dedicated films and 
elearning modules as well as many other communication channels 
fy13 h ighlights
• many sustainability awarenessraising events took place for example 
tui travel colleagues in many destinations supported the travel 
foundation’s ’make holidays greener’ month in july in greece we 
helped organise a highprofile beach cleanup in zante attended  
by the british ambassador to greece
• o ur sustainability commitments were integrated into the group’s 
big picture – an innovative way that we engage colleagues in tui 
travel’s strategy and vision see page 34
• colleagues from across the group were involved in community 
volunteering initiatives such as tui india’s colleagues who took 
part in a local school project in delhi and ad colleagues in the 
dominican republic improving the infrastructure of a school in 
juanillo
• tui nederland launched the tui care foundation to support 
environmental and community projects giving retail colleagues  
the opportunity to vote for their favourite projects  
 wwwtuicarefoundationnl
• we are working to engage our retail colleagues on sustainability 
a retail champions’ network has been set up at tui uk  ireland 
– colleagues visited sustainable tourism projects in turkey this 
summer and have now set sustainability targets for retail back in 
the uk tui nederland has included sustainability as part of retail 
mystery shopping checks
• we rolled out sustainability colleague focus groups to understand 
better our colleagues’ views on these issues and inform our 
communications strategy
• peak conducted a sustainability survey asking colleagues to rank 
what they thought was a priority for their businesses and submit 
new ideas – over 500 colleagues took part
73
tui uk  ireland colleagues 
have spent 12 weeks 
volunteering overseas  
using their skills to support 
sustainable tourism projects
go al by 2015…
o ur colleagues will rate  
tu i travel as a leader in 
sustainability
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
famil y h ol iday asso ciatio 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  
£19 million peter long chief executive  
of tui travel was appointed president 
of the fha on 1 october 2013
 wwwfhaonlineorguk
strategic repo rt ho w we do it
sustainable development
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strategic repo rt
 
busin ess an d fin an cial rev iew
 
directo rs’ repo rt
 
fin an cial statemen ts
 
shareho lder in fo rmation
go al by 2015…
customers will regard tu i  
travel as a leader in delivering 
more sustainable holidays
we will measure this by our performance  
in consumer research in our key source 
markets
customers
through the purchases they make and the actions they 
take on holiday our customers play a vital part in achieving 
tui travel’s sustainable holidays plan that’s why we are 
working to influence choice and develop new products 
to encourage customers to choose ‘greener and fairer’ 
holidays and act responsibly when they are on holiday
o ur business case
there is a growing awareness among our customers about sustainability 
such as the impact of carbon emissions from flying and the need to 
ensure that local people get a fair deal from tourism although these 
issues are not the major deciding factor for most people when they 
choose a holiday it is in the interest of our destinations and the 
environment that it becomes a strong influencing factor in several of 
our key source markets we have found a positive correlation between 
more sustainable holidays and customer satisfaction 
we are encouraging holidaymakers to engage in sustainable tourism 
through our kids’ club activities school education initiatives customer 
donation schemes and sustainable tourism campaigns 
fy13 h ighlights
• at the end of 2012 we conducted international sustainability 
consumer research with 6000 holidaymakers in six source markets 
and the findings were very similar to our research in 2010 we found 
that
 1 in 2 consumers would be willing to book a more sustainable 
holiday if available
 2 in 3 consumers want their holiday company to be clear  
about what they do to make their holidays more sustainable
 2 in 3 consumers would change their behaviour on holiday  
to help the environment
 we also found that modern mainstream consumers had a  
greater engagement with sustainability compared to traditional 
mainstream consumers
• we have developed an online platform called spreading smiles  
to bring our sustainability initiatives to life for customers and 
colleagues  wwwspreadingsmilescom
• fritidsresor our brand in sweden was ranked most sustainable 
travel company in sweden in the 2013 sustainable brand index 
• across the group our businesses are working to reduce brochures 
and to use digital platforms throughout the customer journey for 
example thomson launched an awardwinning mythomson app 
allowing users to look up and book excursions on their smart 
phones as well as find out about local events in their resort tui uk 
 ireland reduced the number of brochure pages printed by 14 
yearonyear
• tui uk  ireland won a silver award in the interactive category  
of the ivca clarion awards 2013 for their ecotraveller programme 
the awards recognise best practice in communicating the 
importance of sustainability 
for further details visit our latest sustainable holidays report  wwwtuitravelplccomsustainability
380000 
number of uk school 
children who participated  
in the ecotraveller 
programme in fy13
l o cal foo d tou rs prov e popul ar
intrepid travel launched a new range of 
food trips in 2013 focusing on authentic 
local food experiences and offering 
travellers a wellpriced alternative to 
traditional highend gourmet food tours 
the trips score an average of 479 out of 5 
from passenger feedback and the range 
has been expanded to 19 trips in 2014
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jacky says “thank you…”
1 2 3 4
34 tui travel p l c annu al re po rt  acc ounts 2013
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how we do it our people
st rat egic repo rt
o ur people
our team of 55000 people working across the world in approximately 
180 countries is what makes tui travel what it is today and gives us a 
real advantage with our shared vision of making travel experiences 
special and our values of customer driven playing to win responsible 
leadership and value driven we are all working towards the same 
strategy and strong growth plans for the future success of our 
business
engaging and involving our colleagues
with many brands and businesses across the world making up tui 
travel there are many more things that make us the same and bind us 
together than those things that could be regarded as differences the 
one shared vision and common values that we are all working towards 
really strengthen our business directly and impacts on our 
performance 
at the start of the last financial year we introduced a new and simple 
way to convey the business strategy and vision for the future through 
the big picture the group management board worked together with 
colleagues from across the world to develop the visual ensuring it 
represents the whole group its core essence and where the business 
is heading recognising the financial and economic factors that affect 
our performance
designed with lots of detail to stimulate discussion the purpose of the 
big picture is for it to be used as a tool to have conversations with our 
people to make sure that they understand our plans for the future  
and the part that they can play by using a picture we make sure that 
our story is clear consistent and memorable it helps to ensure that 
our strategy and vision is understood and contributes to making our 
people feel engaged and motivated 
the picture has been actively rolled out across our group in all sectors 
with the exception of the specialist  activity sector where it will be 
rolled out following completion of the sector’s restructuring
1 pet er lon g
2 william wa ggott
3 dr vo lk er böttch er
4 j ohan lun dgren
for executive biographies go to page 66
5 david bu rlin g managing director  
tu i uk  ireland
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 
6 mittu srid ha ra chief information officer
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
c ontributing to our business performance are 
55000 of our people each bringing their unique 
talent experience and knowledge to tu i t ravel 
o nly with invaluable input from such a wide 
crosssection of passionate inspiring people 
can we continue to innovate and deliver holidays 
and travel services to satisfy ever changing 
customer requirements
i would like to thank all of our people for their 
hard work and commitment this year and for 
making these results possible during what are 
challenging times
t hank you
jacky s immon ds group h r director
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
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s t rat egic rep o rt
 
business and financial review
 
directors’ report
 
financial statements
 
shareholder information
to measure whether we are meeting our people goals and ensuring  
that we are continually driving improvement our first tui travel 
groupwide global opinion survey took place in september 2012 across 
all areas of the group work is well underway to address the survey 
feedback and a number of changes have already been made as well  
as local plans being in place across the group themes to come out of 
the survey included opportunity pride and trust the feedback around 
opportunity focused on increasing the visibility of career opportunities 
and a new internal careers portal was launched in july bringing together 
tui travel’s global vacancies for the first time see global mobility and 
collaboration this also supports the feedback around pride and our 
people wanting to feel part of one global business as we build and 
strengthen our tui travel identity as an employer raised as part of  
the trust theme was leadership effectiveness and to help build trust 
through involvement and more focused employee communication the 
tui travel big picture was introduced these areas will be measured 
again in the next survey when we will also be able to benchmark our 
results and measure how these may have changed over the longterm 
we strive to reach engagement levels that reflect high performance 
and in 2012 we reached 64
we also recognise that our people are incredibly knowledgeable about 
their business areas and that they have some great insight and ideas to 
offer there are a number of active employee representative forums in 
place across the group to ensure twoway feedback and involvement 
raising matters of importance to our people and our business in addition 
the specialist  activity sector’s specialist holidays group has  
involved everyone working in that area to drive their darwin business 
transformation project giving them the opportunity to shape the  
way we work throughout the entire customer journey operating in 
workstreams the project has been driven entirely by ideas generated 
from employees at all levels empowering the team and giving them  
a vehicle to make a difference to the way we work
digitally enabling our people
with online driven being a key part of our strategy we are committed 
to initiating and improving the digital literacy of our people across the 
world our digital workplace vision is to create a single environment 
that is available to our groupwide colleagues anytime anywhere  
any way which provides instant access to communications colleague 
data social interaction and working practices creating a digital 
workplace enables a transformation in our business culture improving 
collaboration and efficiency in our working practices and increasing  
the awareness of expertise and knowledge sharing this will empower 
our colleagues to become brand ambassadors enabling them to fully 
engage with our customers
we’ve invested in a number of online tools to help support our people 
to build on their knowledge and help with this shift in mindset all of our 
colleagues now have access to econsultancy a global online resource 
providing digital training and materials
our global finance academy continues to bring our groupwide 
finance community together to share best practice and provide access 
to the latest training and guidance raising their skills and capability 
the multilingual secure online learning management portal now has 
over 1500 members across 42 countries with membership continuing 
to grow over 1900 courses have been completed since the launch of 
the finance academy in april 2013 sponsored by will waggott cfo 
the academy has already enabled us to create and deliver the ongoing 
coso internal control training deliver targeted learning on cash 
management to senior finance staff and provide best practice training 
and guidance on financial reporting through internal systems
within our specialist  activity sector the specialist holidays group 
has introduced a digital academy boosting the digital talent pipeline 
providing all employees across the business with the opportunity to 
apply for a sixmonth secondment to one of the digital teams successful 
candidates are appointed a mentor for the duration of the placement 
and are provided with both external and onthejob support six 
placements have already taken place including employees from 
commercial sales and publishing
7 an drew j ohn group director – 
s ecretariat h ealth  s afety and risk
andrew john is a solicitor who practised with the city 
law firm of coward chance prior to taking up a career  
in industry he held the post of director legal affairs  
at unisys limited followed by various senior legal and 
commercial positions at vickers plc which culminated  
in his appointment to the vickers board in 1994 as 
commercial director and company secretary in that  
role he led several high profile acquisitions and disposals 
prior to his current role andrew was group legal 
director  company secretary of first choice and 
subsequently tui travel
8 c h rist ian cle mens managing director 
tu i 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
9 j oan v ilà managing director  
accommodation  destinations
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
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how we do it our people
continued
investing in our leaders
at tui travel we know that to deliver our strategy and ensure our 
future growth we need talent strong leadership and development 
opportunities for all 
leadership at tui travel is about engaging and empowering people 
whilst delivering results and managing performance to ensure this 
our global high performance leadership programme focuses on 
the development of our highpotential senior leaders equipping  
them to support our commercial business growth and strategy 
sponsored by the deputy chief executive and md of mainstream 
johan lundgren the programme aims to enhance strategic thinking 
and leadership skills creating the foundation for more active 
collaboration across the group held at the prestigious imd business 
school in switzerland around 20 leaders participate each year and  
are set real high strategic priority business challenges to create 
tangible business improvement plans 
reinforcing this our suite of global high potential learning  
development programmes has been designed for our talent in the early 
stages of their careers or who have been identified as successors to 
commercial senior leadership roles in the future sponsored by joan vilà 
md accommodation  destinations sector about 80 people take part 
in perspectives each year widening their understanding of the group 
strategy our expectations of future leaders and helping to drive the 
mobility of talent across the group supporting our global leadership 
culture our horizons programme is also supported by members of the 
gmb who attend sessions and spend time with the circa 40 delegates 
that take part each year
two new core leadership programmes have been created to support 
managers’ development and are being piloted through some markets 
with a view to launching globally across the group during 2014 
leadership essentials a twoday workshop focuses predominantly  
on self and people leadership and is designed for those early in their 
leadership journey to embed the behaviour which encourages this  
and brings out the best in people leadership evolution is a threeday 
leadership workshop focused on self people and business leadership 
designed for more experienced managers allowing them to explore the 
evolution of themselves as a leader and the organisation in the face  
of a rapidlychanging environment 
in addition to these development initiatives we also run internal  
and external mentoring and coaching programmes
developing our talent pipeline
to build our succession of leadership talent our international  
graduate leadership programme continues to attract develop  
and retain highquality graduates to become our future senior 
commercial leaders 
with two intakes per year another five graduates joined our team in 
september 2013 from the uk germany romania and spain to reflect 
the increasing globalisation of our business we focus on attracting 
graduates with an international mindset and a professional approach 
suitable for our fastpaced ever changing environment there is a 
mentoring programme in place providing support throughout the 
18month programme and senior leaders are committed to meeting 
and developing the graduates through specific assignments in their 
businesses 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 34 years
within tui uk  ireland a placement scheme for university students 
takes place each year providing 810 people on a ‘sandwich’ degree 
course a placement in trading product purchasing cruise and 
ecommerce having run successfully for five years the scheme has 
won and been shortlisted for a number of awards including “best 
overall placement scheme” from national council for work experience 
2010 and regularly features in the top 10 placement schemes  
by ratemyplacementcouk in which it is currently seventh in the 
mediumsized scheme category 48 students have completed this 
scheme since it was introduced with an additional eight joining for  
the 201314 year 13 students who have completed the scheme have 
returned to the business on completion of their degree with eight 
currently working in the business
this business also has the leading employer apprenticeship 
programme in the uk  ireland travel sector working in partnership 
with the skills funding agency and strategic partner city  guilds a 
world leading vocational education organisation over 400 qualifications 
have been achieved by our retail team this year in december after just 
one year with thomson stacie guiel who joined our brighton shop in 
2011 was awarded a city  guilds medal for excellence recognising her 
outstanding performance in travel services
in addition tui uk  ireland has succession planning programmes in 
retail and overseas at every level linked to recognised qualifications
tui deutschland leisure travel has one of the largest training 
programmes in the german travel industry with their apprenticeship 
scheme training approximately 250 people over three years securing 
the future of the business the programme aims to attract the best 
candidates setting high standards and qualifying criteria in december 
2012 franziska binner from peine finished her apprenticeship as the 
best merchant in tourism in lower saxony and was honoured by the 
federal minister for family affairs senior citizens women and youth 
dr kristina schröder a blog wwwtuiazubiblogde was introduced  
at the end of 2012 where apprentices write about their experiences 
providing an authentic report helping to promote the programme  
to prospective candidates
tcs  s ta rqu est to p 100 best plac es  
to wo rk
 tcs  starquest expeditions our private jet expedition company 
has been named as one of the top 100 best places to work in 
washington state by seattle business magazine the award 
recognises washington companies that set the standard for 
leadership strong benefits ideal work environment innovative 
training and happiest employees among other criteria 
“our employees are the heart of our organisation and the 
biggest reason for our success over the years” commented 
shelley cline managing director of tcs  starquest 
expeditions “it is because of their dedication passion  
and expertise that we are able to deliver the best private  
jet and expedition travel experience in the industry”
th e big pictu re
st rat egic repo rt
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business and financial review
 
directors’ report
 
financial statements
 
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corsair has introduced a new apprenticeship scheme welcoming more 
than 30 trainees during 2013 demonstrating corsair’s commitment  
to develop and support young people into the workplace corsair has 
also partnered with two schools within the airline industry the “ecole 
nationale de l’aviation civile” enac and afmae enac the only 
aviation focused university in france offers training and continued 
education for pilots and engineers and afmae focuses on supporting 
other professions including cabin crew and technicians these 
partnerships strengthen corsair’s offering for employees while 
ensuring quality in our professional training 
the accommodation  destinations sector’s laterooms group has 
started to work with manchester metropolitan university to attract 
graduate placements on to their agency life student project two 
students joined the scheme in october 2013 as part of the marketing 
division spending one day a week with lateroomscom as part of their 
second year degree course enabling lateroomscom to provide real 
experience for students the programme also allows the business to 
develop mentor and find future talent while raising awareness for 
the brand
global mobility and collaboration
to help improve global mobility a new global resourcing function is being 
created for the financial year 201314 focusing on senior leadership and 
enabling our people to move more easily around the group and the 
world driving the strategy for increasing the number of international 
moves across the business reinforces our commitment to internal 
promotions and moves 
as part of this and in response to the feedback in our global employee 
opinion survey your voice see engaging and involving our colleagues 
a new internal careers portal was launched in july bringing together 
tui travel’s global vacancies for the first time increasing the visibility 
of career opportunities launched in all areas of the group around 50 
management vacancies are advertised on a weekly basis covering all 
sectors with roles of all levels being introduced at the end of 2013
these initiatives will enable us to monitor better mobility between 
businesses as well as across sectors continuing to build on and 
improve opportunities for career development while staying with 
tui travel
we are also driving a more global mindset by encouraging colleagues 
from across the group based all over the world to work more closely 
together over the past 12 months the mainstream sector has been 
focusing on leveraging its scale by sharing best practice and working more 
collaboratively with each other one example of this new way of working 
is the creation of a new purchasing department set up to buy on 
behalf of the whole of mainstream rather than just for each individual 
source market this has encouraged networking opportunities for our 
people and collaboration across all source markets as well as offering 
more value to the customer see pages 14 to 25
a team of individuals – strength in diversity
it is not only our customers that we recognise are all individuals our 
55000 strong workforce based all over the world represents a wide 
range of different backgrounds and cultures enabling us to gain a real 
advantage and truly understand our customers and their ever changing 
needs our diversity is at the heart of our success and is one of our 
major strengths making each brand so successful and our company 
what it is 
we are clear that we don’t 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
illustrating this diverse workforce 24 of our senior leaders 243 
based across 24 countries are female across our total workforce  
63 of all employees and 38 of managers are female 
rewarding our colleagues and supporting 
their wellbeing
it is the dedication of our people that makes the difference when it 
comes to making travel experiences special and we strive to make 
our people 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 market practice this year there have been significant 
changes in the uk with the introduction of new pension auto
enrolment legislation since june 2013 eligible employees are now 
automatically enrolled into our company pension scheme with a set 
level of company and employee contributions over 4700 people have 
been successfully enrolled into the company pension scheme
we continue to encourage share ownership in the company amongst 
colleagues in the uk we are able to offer a share incentive plan that 
allows colleagues to purchase tui travel plc shares in a tax efficient way 
the health and wellbeing of our colleagues is paramount and an example 
of how this is supported in tui uk  ireland is their pilot programme 
your life – a healthier happier you which aims to increase employee 
engagement the programme has resulted in a reduction in the average 
duration of longterm sickness absence and days lost through sickness 
tui leisure travel in germany has also developed a new health 
management scheme as a part of a pilot project in our travel agencies 
focused on preserving the health of employees
h uman rights
please see the sustainable development section page 29 
 t omo rro w’s t ravel leader  
lee n icho lson
 lee nicholson who joined thomson airways 
straight from university in 2006 is one of the 2013 
winners of ttg’s 30 under 30 in their tomorrow’s 
travel leaders competition working his way up 
from cabin crew to his current role as ground 
training instructor where he is credited with 
delivering innovative training packages lee said 
“it will be interesting to meet people outside 
aviation i’m quite into digital and social media  
and thomson’s really aware of that i’ve looked at 
other people from last year’s group and they’re 
very much online”
partn ersh ip with a4e
partnering with a4e a government work provider 
we are working to support young people in the uk 
 ireland into work 50 people aged between 1618 
have been recruited into our jca education brand 
who have since transferred into other business 
areas for their second season
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strateg ic 
dr ivers
g rowth  
roa dmap target
del iver ing 
 ma instream growth
o rgan ic s pecial ist 
 ac t ivity growth
content
bran ds   
distr ibut ion
t echnology g rowth  
 sc ale
people
key to s trateg ic dr ivers
see more about our strategic drivers on page 16
38 tui travel p l c annu al re po rt  acc ounts 2013
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strateg ic report
how we measure it key performance indicators kpis
u nique h ol idays onl y a vaila ble from tu i t ra vel
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
distr ibute d dire ctl y to the customer – growth from onl 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 
l everag ing our s cale
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 
we are targeting a unique 
holiday mix of 76 as  
a proportion of total 
mainstream s ector holidays 
by 2017 and continuous 
improvement in customer 
satisfaction
we are targeting a direct 
distribution mix of 81 and 
an online distribution mix  
of 50 in our mainstream 
s ector by 2017
w ithin mainstream we  
target overheads of less than 
5 in each source market 
our kpis enable tui travel’s stakeholders to monitor performance against our 
growth levers see more on page 57  and growth roadmap
79 
customer satisfaction score 
in uk nordics and germany 
combined during 2013
69 
of our mainstream holidays 
were unique in 2013
we are targeting underlying 
operating profit growth of 
between 8 to 10 per 
annum between 2012 and 
2017 including delivery of 
£9m business improvement 
savings
6kpisv39 copyindd   38 13122013   1748 u nique holidays mix as a proportion of total 
mainstream s ector package holidays
2013 xx  2012 65  2011 62
customer satisfaction for key mainstream  
source markets rated out of a total of 100
2013 xx  2012 xx  2011 xx
performan ce key performan ce in dicators
at constant currency rates
39 tui travel p l c annu al re po rt  acc ounts 2013
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s trateg ic report
 
business and f inancial r ev iew
 
dir ector s’ r epor t
 
financia l statements
 
shar ehol der inf or mation
in the year we increased the unique holidays mix by four percentage points across the 
mainstream sector as a whole to 69 within this the uk and germany improved by four 
percentage points to 83 and 51 respectively and the nordic region improved by one 
percentage point to 93
customer satisfaction for the uk nordic region and germany combined increased by  
two percentage points to 79 driven by improved scores in all three source markets
to measure our progress we have two distribution kpis i direct distribution mix  
and ii online distribution mix
direct distribution mix increased to 66 with improvements in all source markets  
the improvement in direct distribution was driven by the online channel which has 
increased by two percentage points in 2013 to 35 within this the uk improved by  
three percentage points to 47 the nordic region improved by two percentage points  
to 68 and germany improved by four percentage points to 8
the mainstream overhead percentage of revenue improved from 52 to 46 in 2013 
2013 was a year of restructuring and refocusing for the specialist  activity sector and  
as anticipated underlying operating profit has not grown during the year now that the 
sector restructure is complete we look forward to delivering against our growth roadmap 
in the next four years as part of this we have already delivered £3m of business 
improvement savings during 2013
u nique holidays mix as a proportion of  
total mainstream s ector package holidays
2013 69  2012 65  2011 62
customer satisfaction for key mainstream  
source markets
2013 79  2012 77  2011 76
direct distribution mix as a proportion of  
total mainstream s ector package holidays
2013 66  2012 65  2011 63
o nline distribution mix as a proportion  
of total mainstream s ector package holidays
2013 35  2012 33  2011 30
mainstream overhead as a  of revenue
2013 46  2012 52  2011 54
underlying operating profit
2013 £41m
2012 £48m
35 
of our mainstream  
holidays during 2013  
were purchased online
66 
of our mainstream  
holidays during 2013 were 
distributed directly by  
us to the customer
6kpisv39 copyindd   39 13122013   1748 strategy
strateg ic 
dr ivers
g rowth  
roa dmap target
f o cus on free cash flow 
generat ion ro ic an d 
operat ional eff icien cy
pioneer ing 
susta ina bil ity 
change in our 
se ctor
l everag ing our glo bal 
lea dersh ip pos it ion 
in accommo dat ion 
w holesaler
in vest ing in 
accommo dat ion ota
content
bran ds   
distr ibut ion
t echnology g rowth  
 sc ale
people
key to s trateg ic dr ivers
see more about our strategic drivers on page 16
40 tui travel p l c annu al re po rt  acc ounts 2013
tt14  ar 2013  13122013  artwork tt 14  ar 2013  13122013  artwork
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
we are targeting our airlines 
to reduce per passenger 
carbon emissions by 9 
by 2015 against a baseline 
of 2008 s ee s ustainable 
development section
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 l atin america and africa
in accommodation ota online travel agent our focus is to build on our 
strong brand positioning of l ater oomscom in the uk and expand in the 
emerging markets through asiar oomscom across asia and in brazil with 
malapronta brazil’s fourth largest accommodationonly ota
we are targeting an 
underlying operating profit 
growth for accommodation 
w holesaler of between 15 
to 20 per annum between 
2012 and 2017
we are targeting growth 
in traffic and roomnights 
in our existing ota brands 
l ater ooms a siar ooms 
and malapronta
£46m 
business improvement 
savings delivered during 2013
28 
growth in accommodation 
wholesaler underlying 
operating profit in 2013
we target continuous 
improvement in g roup  
ro ic and cash conversion  
of at least 70 of profit 
before tax we are  
targeting delivery of the 
remaining £19m of business 
improvement opportunities 
over the next two years
strateg ic report
6kpisv39 copyindd   40 13122013   1748 performan ce key performan ce in dicators
at constant currency rates
41 tui travel p l c annu al re po rt  acc ounts 2013
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s trateg ic report
 
business and f inancial r ev iew
 
dir ector s’ r epor t
 
financia l statements
 
shar ehol der inf or mation
r oic has improved again this year by 26 percentage points to 148 driven by the 
significant increase in underlying net operating profit after tax
we generated a cash conversion rate of 90 in 2013 as a result of a strong operating  
cash flow performance we continue to target a cash conversion rate of at least 70  
going forward 
we delivered £46m of operational efficiency savings through the business improvement 
programme in the last 12 months with a further £19m to be delivered in the next two 
years
we made significant improvements in 2013 our airlines’ per passenger carbon emissions 
reduced by 32 year on year from 730g co
2r pk in 2012 to 707g co 2r pk in 2013 a 
93 reduction against our 2008 baseline year this was achieved through investment in 
new more fuelefficient aircraft operational efficiencies fuel conservation activities and 
capacity amends 
we had a strong performance in accommodation wholesaler in 2013 with 28 growth  
in underlying operating profit at constant currency 2012 rates ttv grew by 23 from 
£1351bn to £1655bn in 2013 with 16 growth in roomnights topline growth was driven 
primarily by expansion in asia and l atin america
we continued to invest in the asian and brazilian markets in accommodation ota during 
2013 traffic grew by 7 in the year whilst roomnights grew by 8 in asiarooms total 
roomnights fell by 6 driven by l ater ooms which implemented a new online platform 
during the year
90 
cash conversion during  
2013 significantly above  
our target of 70
148 
r oic improved by 
26 percentage points 
during 2013 to 148
growth in underlying operating profit
2013 28
g rowth in roomnights
2013 16
growth in traffic
2013 7
decrease in roomnights
2013 6 
ro ic
2013 148  2012 122  2011 113
cash conversion
1
2013 90  2012 78  2011 120
business improvement programme
2013 £46m
1
  free cash flow excludes net aircraft predelivery  
payments and movements in restricted cash
carbon efficiency measured through  
tu i t ravel airlines’ average carbon emissions 
per revenue passenger kilometre g co
2
rp k
2013 707g co 2rp k
2012 730g co 2r pk
2011 759g co 2r pk
6kpisv39 copyindd   41 13122013   1748 42 tui travel p l c annu al re po rt  acc ounts 2013
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stra te gic r e por t
what are the risks principal risks
risk governance
•	 successful risk management 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 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 
pr ofile 	 and 	 is 	 quick 	 t o 	 flex	 either 	 it s 	 stra t egic 	 objec tiv e 	 and or 	 it s	 
risk strategy as necessary we also recognise that this capability 
r equir es 	 a c tiv e 	 c ommitment 	 a t 	 the 	 t op  	 a 	 str ong 	 independent 	 risk	
function clear consistent risk methodology and language good 
inf orma ti on 	 flo ws	 and 	 a 	 cultur e 	 o f 	 open 	 and 	 honest 	 c ommunicati on
•	 our risk governance framework is set out below and summarises the 
various risk related roles responsibilities and relationships operating 
throughout the group
strategic risk governance
risks of the strategy direction
the board determines the strategic direction of the business and 
agrees the nature and extent of the risk it is prepared to take to 
a ch ie v e 	 it s 	 stra t egic 	 objec tiv es	
effective risk management is dependent on the capability and 
commitment of our people the nomination committee 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 rigorously and freely challenged and debated 
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 group strategy function 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 
o utlines 	 the 	 mark et 	 a t tra c tiv eness 	 c ompetitiv e 	 positi on 	 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 	 t ype 	 o f 	 risk 	 tha t 	 the 	 boar d 	 finds 	 appr opria t e 	 in 	 the 	 pursuit 	 of	
enhanced shareholder value through this process the strategic 
options and the tradeoffs between risk and reward are debated 
upfr ont 	 and 	 thr o u gh 	 on g o in g 	 r e view 	 and 	 r efinement 	 ar e 	 pulled	
pr o gr essiv ely 	 int o 	 the 	 close 	 w ea v e 	 o f 	 stra t egic 	 int ent 	 that 	 best 	 fit s	 
the business its culture capabilities and resource the strategy  
onc e 	 fully 	 defined 	 c onsider ed 	 and 	 appr o v ed 	 b y 	 the 	 boar d 	 is 	 then	
inc orporat ed 	 int o 	 the 	 gr o up ’ s 	 fiv e 	 y ear 	 r oadmap 	 and 	 helps 	 t o 	 define	
and communicate the risk appetite and expectations of the 
organisation both internally and externally
risks to the strategy execution
having determined the appropriate level of risk for the business in 
relation to the potential for reward the board then ensures that risks 
t o 	 the 	 deliv er y 	 of 	 the 	 strat egic 	 objec tiv es 	 ar e 	 identified 	 assessed 	 and	
managed effectively 
while the nomination committee ensures an optimum balance  
of 	 skills 	 kno wledg e 	 and 	 experienc e 	 r equir ed 	 within 	 the 	 ex ecutiv e	
management team to deliver the strategy the remuneration 
committee ensures the appropriate incentivisation to drive high 
performance with commensurate control business performance 
r elating 	 t o 	 the 	 a chie v ement 	 of 	 strat egic 	 operati onal 	 and 	 financial	
objec tiv es 	 is 	 r e vie w ed 	 and 	 monit or ed 	 closely 	 at 	business review 
meetings chaired by the chief executive
the audit committee on behalf of the board seeks assurance  
that the risk management process 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 	 pr ofile 	 is 	 w ell 	 within 	 the 	 risk 	 capa cit y 	 of 	 the 	 organisati on	
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 invites 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 
group risk management committee grmc and group risk 
function on activities relating to risk management as well as updates 
from the group functions including their relevant compliance 
functions 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
operational risk governance
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 
comprising the full membership of the gmb supported by key 
members of the risk and control community it is chaired by the  
chief executive and meets four times a year the grmc has two  
key responsibilities 
•	 to ensure that an effective risk management process is operating 
throughout the organisation 
•	 to be involved actively in identifying assessing and managing those 
risk s 	 most 	 significant 	 t o 	 the 	 long t erm 	 value 	 of 	 the 	 organisati on	
t o 	 discharg e 	 the 	 first 	 of 	 these 	 r esponsibilities 	 the 	 grmc 	 selec t s 	 k e y	
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 
manag ed 	  risk 	 pr oc ess  	 and 	 the 	 risk s 	 identified 	 ‘ bot t om 	 up ’ 	 as 	 a 	 r esult	
risk content it also receives regular presentations from the director 
of group audit services  risk on the ongoing level of engagement 
and 	 ef f ec tiv eness 	 of 	 ea ch 	 sec t or sour c e 	 mark et 	 in 	 r elati on 	 t o 	 the 	 risk	
manag ement 	 pr oc ess 	 specific 	 ar eas 	 of 	 str eng th 	 and 	 w eakness 	 b y	
individual business area and an analysis of the ‘bottom up’ risks 
reported along with any developing themes
7riskv47 copyindd   42 13122013   1748 topics presented and debated 
at th e grmc du ring th e year
strategic  
gov ernance
operational  
gov ernance
1st li ne  
of defence
2nd li ne  
of defence
3rd li ne  
of defence
group au dit servi ces – independent assu rance
group fu nctions – ov ersigh t
a  
nomination 
committee
b  
remuneration 
committee
c  
audit  
committee
board – direction
group management board
a  
group risk 
management 
committee
b  
capability 
committee
c  
investment 
committee
d  
pro j e c t s	
committee
management – execu tion
erm framework  maturity 27
geopolitical environment 4
industry regulations 8
internal controls 19
policies 8
projects 19
strategy 15
43 tui travel p l c annu al re po rt  acc ounts 2013
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strategic report
 
bu siness and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
risk governance framework
the 	 majorit y 	 o f 	 grmc 	 time 	 ho w e v er 	 is 	 r eser v ed 	 f or 	 the	
identifica ti on 	 assessment 	 and 	 mana g ement 	 o f 	 p rincipal 	 risk s 	 t o 	 the	
group strategy individual members of the grmc are accountable 
f or 	 specific 	 p rincipal 	 risk s 	 and 	 f or 	 the 	 qualit y 	 of 	 risk 	  	 c ontr ol	
summaries which set out the key controls on which reliance is 
pla c ed 	 and 	 the 	 fur ther 	 a c ti ons 	 tha t 	 ar e 	 r equir ed 	 as 	 nec essar y  	 t o	
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 
recognising the unpredictability and speed at which risks can 
materialise into issues risk velocity and the impact this can have  
on the group the grmc has developed tailored response plans for 
each of the group’s key risks principal risk owners within the grmc 
are accountable for developing key risk indicators as appropriate to 
increase the organisation’s awareness and sensitivity to movements 
in its risk landscape thereby helping to extend its risk horizon and 
enhance its risk response capability 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 
hed gin g 	 or 	 amplified 	 thr o u gh 	 specific 	 risk 	 c ombinati ons	
feedback to the board
the director of group audit services  risk 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 
b y 	 the 	 boar d 	 t o 	 ensur e 	 tha t 	 it 	 fit s 	 with in 	 it s 	 o v erall 	 risk 	 appetit e 	
wher e 	 ther e 	 is 	 misalignment 	 bet w een 	 the 	 risk 	 pr ofile 	 and 	 the 	 risk	
appetite ie management are taking too much or too little risk 
r ela tiv e 	 t o 	 the 	 stra t egic 	 objec tiv es  	 the 	 boar d 	 seek s 	 t o 	 ensur e 	 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 
additional sub committees of the gmb
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 
it s 	 futur e 	 needs 	 in 	 the 	 a ch ie v ement 	 o f 	 it s 	 stra t egic 	 objec tiv es	
the investment committee ensures that risk and reward is closely 
scrutin ised 	 pri or 	 t o 	 an y 	 a c quisiti ons 	 capital 	 expenditur e 	 and 	 major	
investments 
the projects committee 	 o v ersees 	 cr oss gr oup 	 pr o jec t s 	 and	
ensures that interdependencies and risks both upside and 
downside are understood fully and guidance provided as 
appropriate
risk management process
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 implemented during fy12 which has reinforced 
clarity of language visibility of risks controls and actions and 
accountability of ownership 
7riskv47 copyindd   43 13122013   1748 risk landscape
u nderstand mark et
ex ternal
l e s s 	 p r e dic t ab l e  c o nt r o l l ab l e 
internal
 m o r e 	 p r e dic t ab l e  c o nt r o ll ab l e 
today
tomorrow
control  monitor
adapt strategy
manage ch ange
gl obal  
financial  
factors
consu mer 
demand
bu siness 
improv ement 
opportu nities
trade
relations
antibribery  
corruption
fuel  fx 
volatility
airline
regulatory
antimoney
l aundering
supplier
risk
new mark ets 
acqui sitions  
inv estments
consu mer 
preferences 
 desires
sustainable 
development
big data
digital devices
u n iq u e	
 diverse
product
multichannel 
distribution
new 
concepts
tax
customer 
engagement 
 retention
tal ent 
management
l iq u idi t y	 
 cash
management
hs
financial 
control   
reporting
business 
i nt e r r up t i o n  
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
ex ternal  
regul atory
internal 
operations
strategic 
 emerging
bu siness
ch ange
th e
enterprise
poli tical v ol atili ty
natu ral catastroph e
regul atory 
envi ronment
principal risks other risks
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stra te gic r e por t
what are the risks principal risks
continued
risk 	 identifica ti on  	 on 	 a 	 quar t erly 	 basis 	 line 	 manag ement 	 closest 	 t o	
the risks identify the gross risks relevant to the pursuit of strategy 
within their business area in the context of
•	 longerterm strategic and emerging threats 
•	 mediumterm challenges associated with business change 
programmes 
•	 shorterterm risks triggered by changes in the external and 
regulatory environment and
•	 shorterterm risks in relation to internal operations and control
risk descriptions the nature of the risk is articulated including the 
possible causal factors that may give rise to the risk materialising  
th is 	 allo ws 	 the 	 sec t orsso ur c e 	 mark et s 	 and 	 the 	 gr oup 	 t o 	 assess 	 the	
int era c ti on 	 o f 	 risk s 	 and 	 po t ential 	 trig g erin g 	 e v ent s 	 and or 	 ag gr egat ed	
impacts before developing appropriate mitigation strategies to target 
c a use s 	 a nd o r 	 c o nseq ue nc e s 
risk assessment risks are assessed in relation to potential impact and 
lik elihood 	 as 	 measur ed 	 a ga inst 	 pr edefined 	 financial 	 and 	 nonfinancial	
crit eria 	 r ele vant 	 t o 	 the 	 specific 	 business 	 ar ea 	 the 	 curr ent 	  net  	 risk	
position which takes into account existing controls is then considered 
in 	 r ela ti on 	 t o 	 the 	 risk 	 targ et  	 wher e 	 the 	 o v erall 	 curr ent 	 risk 	 pr ofile 	 is	
considered too high relative to the aggregated appetite of the group 
management identify mitigating actions to achieve the target planned 
risk 	 positi on 	 wher e 	 the 	 risk 	 pr ofile 	 is 	 t oo 	 lo w  	 manag ement 	 can 	 af f or d	
to take more risk
risk response
•	 mitigating controls for the principal risks reviewed and monitored 
by the grmc and the next layer of risks reviewed and monitored 
at 	 sec t or sour c e 	 mark et 	 le v el 	 the 	 c ontr ols 	 on 	 which 	 r elianc e 	 is	
pla c ed 	 ar e 	 f ormally 	 document ed 	 b y 	 manag ement 	 as 	 r equir ed 	 these	
controls are articulated in detail control type control owner control 
operat ors 	 c ontr ol 	 fr equenc y  	 in 	 the 	 risk 	  	 c ontr ol 	 summaries 	 and	
ar e 	 subjec t 	 t o 	 independent 	 validati on 	 b y 	 int ernal 	 audit 	 the 	 r esult s	
of which are reported directly both to the audit committee and to 
the board 
•	 mitigating 	 ac ti ons 	 wher e 	 mitigating 	 a c ti ons 	 ar e 	 r equir ed 	 these	 
are also articulated in detail action plan owner action task owners 
initial and revised delivery dates and then tracked by the grmc or 
sec t or sour c e 	 mark et 	 as 	 appr opriat e 	 depending 	 on 	 the 	 significanc e	
of the risk 
review and approval it is the responsibility of sector and source 
market boards across the group and senior management teams 
beneath 	 them  	 t o 	 r e vie w 	 and 	 agr ee 	 the 	 risk 	 pr ofile 	 f or 	 their 	 ar ea 	 of	
responsibility including signing off on the effectiveness of controls  
and the progression of action plans within agreed delivery timescales
the 	 gr oup 	 risk 	 func ti on 	 c onsolidat es 	 the 	 sec t or sour c e 	 mark et	 
risk registers and reports this ‘bottomup’ to the grmc for review 
alongside the group’s principal risks new risks are added to the  
gr oup 	 risk 	 p r ofile 	 if 	 deemed 	 t o 	 be 	 of 	 a 	 significant 	 natur e 	 so 	 that	 
the ongoing status and the progression of key action plans can be 
managed in line with the group’s targets and expectations 
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strategic report
 
bu siness and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
risk 
category
strategic
natu re and 
ex tent of risk
cu rrent  
mitigation
consu mer 
preferences  
 desires
strategic  
driv ers
content
brands  
distribu tion
tech nol ogy
grow th  
 scal e
peopl e
contex t
price product and digital solutions play  
a key part in the consumer’s decision
making process consumers are 
increasingly turning online to research  
and book holidays and are moving 
towards booking nearer the time of travel
risk
w e 	 do 	 not 	 identif y 	 or 	 respond 	 quickly	
enough to changes in consumer 
preferences and do not keep up with 
latest technological developments
potential i mpact
our market positions come under 
pressure resulting in lower short to 
mediumterm growth rates and  
reduced margins
appetite
we are eager to be innovative and 
consider all investment options to  
ensure we remain relevant to our 
consumer preferences  desires 
net risk m ov ement
“following our results it is obvious that 
our strategy of unique holidays sold 
directly to our customers is the right  
one as the business continues its move 
towards a more online future and while 
we efficiently manage our costs we 
continue to build upon the foundations 
of a business set for sustainable growth 
our colleagues within the business care 
deeply about the customer experience 
and everything we do is built around 
enhancing it at every level through  
every stage of the customer journey 
from dreaming of a holiday to sharing  
it with family and friends once they  
have returned home”
groupwi de
ongoing
•	 monitoring closely changes in consumer preferences and sentiment within the wider 
contex t 	 of 	 our 	 industr y 	 and 	 the 	 dif ferent 	 sources 	 of 	 influence	 on 	 our 	 customer s ’	
spending
•	 developing 	 new 	 concept s 	 and 	 ser vices 	 which 	 are 	 unique 	 diver se 	 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 
progress
•	 established a dedicated group digital solutions pmo to lead it innovation across the 
group identify participation in emerging technologies and drive market intelligence 
•	 agreed funding to test and develop important new technologies to ensure our ongoing 
relevance to consumers
planned
•	 exploring how ‘big data’ customer social and performance data combined might 
inform our strategy and enable us to personalise our interactions with our customers
tou r operator
ongoing
•	 lever aging 	 our 	 mainstream 	 struc ture 	 to 	 enhance 	 the 	 por t folio 	 of 	 unique 	 and 	 ex clusive	
products designed to increase our competitive advantage
•	 monitoring closely our concept portfolio and developing new hotel concepts and 
adapting these where appropriate for our different source markets 
•	 developing the strong brand portfolio of tailormade products and services within  
our specialist businesses and reviewing opportunities to extend it into new markets 
•	 investing in online platforms and enhancing booking and search functionality in order  
to provide our customers with easy to access inspirational content whilst consolidating 
finance 	 and 	 reser vation 	 systems 	 to 	 lever age 	 sc ale 	 acros s 	 multiple 	 source 	 mark et s 
•	 focusing on being an onlinedriven business including our participation in social media 
according to the preferences of our customers encompassing the entire customer 
journey 	 from 	 dreaming 	 and 	 planning 	 through 	 to 	 experiencing 	 and 	 sharing
progress
•	 increased 	 the 	 v olume 	 of 	 unique 	 holida ys 	 and 	 selling 	 to 	 our 	 customer s 	 through 	 multiple	
channels in a number of our key source markets thereby enhancing our customer 
booking experience 
•	 developed and launched a panmainstream allinclusive 3 concept ‘suneoclub’ 
featuring a series of bright modern and friendly three star allinclusive hotels offering 
new 	 st andards 	 of 	 qualit y 	 and 	 af fordabilit y 	 for 	 our 	 customer s 	
•	 l aunched new services and tailormade offerings within our specialist businesses 
providing a seamless service which in turn is driving considerable growth
•	 created a mainstream distribution  online team providing a clear focus drive and 
support to all mainstream source markets through sharing of best practice on all digital 
matters retail operations crm and ancillaries providing an immediate improvement  
to the customer experience 
•	 l aunched the my thomson digital assistant in our u k source market with plans to 
extend it out to our other source markets to help our customers plan their holidays  
and explore the destination before they arrive 
•	 started the transformation of the traditional travel agency into the nextgeneration 
retail concept store combining the knowledge and expertise of our people with the  
latest technology as we move into a fully multichannel world 
onli ne accommodation
ongoing
•	 reviewing closely our offer to ensure that we have a wide variety of product in terms  
of 	 qualit y  	 destination 	 and 	 budget  	 that 	 our 	 content 	 is 	 rich 	 and 	 inspiring 	 and 	 that 	 it	
translates well digitally in order to attract and retain our diversified customer base 
•	 continuing to update and upgrade 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
progress
•	 delivered mobile optimised websites for l aterooms asiarooms and malapronta  
and have developed mobile apps for asiarooms and l aterooms
see ‘our five strategic drivers’ page 16
principal risk table 
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stra te gic r e por t
risk 
category
strategic
natu re and 
ex tent of risk
cu rrent  
mitigation
bu siness 
improv ement 
opportu nities
strategic  
driv ers
content
brands  
distribu tion
tech nol ogy
grow th  
 scal e
peopl e
contex t
the group is heavily reliant on legacy 
systems processes and structures which 
in some cases are outdated complex and 
i nef fi c ie nt 
risk
we do not address successfully the legacy 
inef ficiencies 	 and 	 complexities 	 of 	 our	
existing infrastructure
potential impact
w e 	 incur 	 higher 	 cost s 	 due 	 to 	 inef ficiencies 	
impacting our ability to optimise business 
performance and provide a valueadded 
service to our consumers
appetite
we are eager to be innovative and 
consider all options that might strengthen 
our infrastructure and drive out cost and 
complexity 
net risk m ov ement 
“we have been successful in implementing 
our groupwide business improvement 
programmes this year the total savings 
made this year equates to £46m an 
acceleration of the target outlined at  
the start of year these cost savings  
were primarily driven by back office 
restructuring and it platform 
replacement across a number  
of markets”
“we are an online business but we 
continue to drive further enhancements 
through technologies that amplify the 
customer experience at the frontend and 
drive further efficiencies in the backend 
processes”
“we are pleased to say that we were the 
first business in the uk to take delivery 
of the boeing 787 dreamliner that  
has exceeded customer and our own 
expectations in its first few months of 
operation in may we committed to 
purchasing 60 new boeing 737 max 
aircraft and secured the option and right 
to purchase another 90 on the same 
terms the deal will enhance our unique 
offering replace older aircraft and help 
secure the future of our six airlines”
groupwi de
ongoing
•	 driving stronger and more costeffective relationships with key service providers 
through better coordination of key procurement activities 
•	 strengthening our internal control environment through the rollout of the coso control 
framework across financial reporting compliance and operational categories of control 
through the establishment of group finance l egal  regulatory and it compliance 
•	 implementing business continuity management in our various businesses in order  
to build resilience into our operations 
progress
•	 r estruc tured 	 the 	 group 	 cio 	 func tion 	 to 	 provide 	 the 	 governance 	 fr amework 	 required	 
to deliver technology innovation
•	 instig ated 	 a 	 review 	 of 	 projec t 	 management 	 competence c apabilit y 	 and 	 the 	 adequac y 
ef fec tivenes s 	 of 	 centr al 	 o ver sight  control 	 in 	 order 	 to 	 ensure 	 that 	 the 	 go vernance 	 in 	 place	
adequately 	 reflec t s	 the 	 current 	 and 	 future 	 tr ansformation 	 needs 	 of 	 the 	 org anis ation	
•	 established compliance steering group to ensure better understanding and 
management of interrelationship of risks and controls between coso categories 
tou r operator
ongoing
•	 r eviewing 	 areas 	 where 	 the 	 ef ficienc y 	 of 	 our 	 oper ations 	 c an 	 be 	 fur ther 	 improved	 
and costs reduced without compromising on customer experience
•	 increasing controlled distribution thereby reducing third party costs and enabling  
a direct relationship with our customers
•	 upgr ading 	 our 	 web 	 front  end 	 reser vation 	 and 	 finance 	 systems 	 acros s 	 all 	 source 	 mark et s	
with plans progressing well in our key source markets such as germany and the u k 
progress
•	 focused on exploiting our mainstream structure to leverage scale in order to grow and 
consolidate our leading position within europe and to ensure we are well placed to offset 
any adverse movement in some of our other principal risks
•	 established the mainstream purchasing team to act globally and focus on purchasing  
the right product at the right price to provide best value for money
•	 established a modern destination services board with senior executives from both our 
mainstream and specialist destination services division providing excursions transfers 
and 	 other 	 t ailored 	 produc t s  	 creating 	 a 	 strong 	 and 	 mutually 	 beneficial 	 relationship 	 and	
added value to the consumer 
•	 commenced 	 flying	 the 	 boeing 	 7 87 	 dreamliner 	 on 	 longhaul 	 routes 	 vastly 	 improving	 
our 	 customer s ’ 	 flying	 experience 	 whilst 	 driving 	 down 	 cost s 	 and 	 improving 	 airline 	 and	
en vir onmen t a l 	 ef fi ci enci e s 
•	 commit ted 	 to 	 the 	 purchase 	 of 	 6 0 	 boeing 	 73 7 	 ma x 	 aircr af t 	 to 	 replace 	 the 	 7 57 	 fleet	 and	
older 	 73 7 s 	 acros s 	 our 	 airlines 	 to 	 oper ate 	 our 	 shor t 	 and 	 mediumhaul 	 flight s 	 improving	
cost 	 ef ficienc y 	 through 	 simplif ying 	 oper ational 	 tr aining 	 and 	 maintenance
•	 r estruc tured 	 our 	 specialist 	 and 	 ac tivit y 	 sec tor 	 resulting 	 in 	 a 	 simplified 	 management	
structure increased sharing of expertise and knowledge across divisions improved 
oper ational 	 ef ficienc y 	 and 	 a 	 plat form 	 for 	 future 	 grow th
•	 committed to combining the u k finance shared service centre with the existing 
german 	 finance 	 shared 	 ser vice 	 centre 	 in 	 order 	 to 	 create 	 one 	 tr ans ac tional 	 back 	 of fice	
finance team working from one common platform enabling us to be more operationally 
ef ficient 	 and 	 ef fec tive
onli ne accommodation
ongoing
•	 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 	 org anic ally 	 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 
planned
•	 planning to drive superior growth by developing new distribution channels and  
new customer segments in this market
see ‘our five strategic drivers’ page 16
principal risk table
continued
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strategic report
 
bu siness and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
risk 
category
strategic
natu re and 
ex tent of risk
cu rrent  
mitigation
new m ark ets 
acqui sitions  
inv estments
strategic  
driv ers
content
brands  
distribu tion
tech nol ogy
grow th  
 scal e
peopl e
contex t
the group continues to look into new 
markets as the traditional mainstream 
markets mature specialist businesses 
online accommodation and new markets 
represent 	 a 	 signific ant 	 oppor tunit y 	 to	
participate in longerterm travel growth 
trends and have higher growth potential
risk
we do not maximise potential growth 
opportunities to deliver results in new 
markets due to lack of investment 
appetite 	 shor t 	 termism 	 and 	 dif ficult y 	 in	
leveraging group assets and integrating 
operations and systems
potential impact
our potential longterm growth rates and 
margins 	 are 	 impac ted 	 with 	 c ash 	 flows 	
lower 	 than 	 anticipated 	 and 	 signific ant	
absorption of resource
appetite
we are willing to consider all markets 
acquisitions 	 and 	 investment s 	 to 	 drive	 
longterm sustainable growth value
net risk m ov ement
“acquisitions were made in the year for  
a total investment value of £30m in 
order to expand business operations in 
line with the group’s growth strategy 
businesses acquired during the year 
primarily related to the 501 of tui 
infotec gmbh that the group did not 
already own and 100 of the share 
capital of jbs group isango and  
tt visa services”
groupwi de
progress
•	 e st ablished 	 a 	 dedic ated 	 group wide 	 merger s 	  	 acquisitions 	 team 	 to 	 help 	 identif y 	 and	
optimise the best growth opportunities available across the group through ma activity
•	 created 	 a 	 new 	 mark et s 	 division 	 focusing 	 specific ally 	 on 	 merger  	 acquisition 	 and 	 joint	
venture opportunities in emerging economies in order to optimise our investments and 
to evaluate where existing group assets can be best leveraged into new markets
tou r operator
ongoing
•	 developing and delivering the participation strategy for both outbound and domestic 
tour operations in new markets to create longterm growth and improved shareholder 
value 
progress
•	 established a presence for tu i travel in the bric economies of brazil russia india  
and china with focus now switched to assessing the next set of new frontier markets
planned
•	 planning to expand further our long established tour operator tu i india now the 
preferred agent for the promotion and sales of emirates holidays in india to cater  
for the domestic and outbound consumer through a combination of own retail travel 
agencies an extensive b2b network and online 
onli ne accommodation
progress
•	 developed a clear strategy for targeting emerging markets in particular in africa  
asia and l atin america 
•	 a siar ooms 	 recognised 	 as 	 the 	 best 	 o t a 	 in 	 a sia 	 pacific 	 due 	 to 	 our 	 ex cellence 	 in 	 online	
experience and customer service 
•	 increased our brazilian accommodation ota malapronta hotel portfolio in the past  
year across the main domestic destinations of sao paulo rio de janeiro and curitiba
see ‘our five strategic drivers’ page 16
new markets acquisitions 
 investments
asiarooms recognised as 
best 	 o t a 	 in 	 asia 	 pacific	
through online experience 
and customer service
business improvement 
opportunities
committed to purchase  
60 	 boeing 	 73 7 	 ma x 	 air craf t	
t o 	 replac e 	 the 	 7 5 7 	 fleet
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stra te gic r e por t
principal risk table
continued
risk 
category
operational
natu re and 
ex tent of risk
cu rrent  
mitigation
gl obal 
financial 
factors
strategic  
driv ers
grow th  
 scal e
contex t
the crossborder nature of trading 
exposes 	 our 	 busines s 	 to 	 fluc tuations	 in	
exchange rates and complex tax laws  
in 	 addition 	 a 	 signific ant 	 propor tion 	 of	
operating expenses are in relation to 
aircr af t 	 fuel 	 which 	 is 	 also 	 subjec t 	 to	
fluc tuation	 geo politic al 	 event s 	 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 
lon g  t er m 	 fi n a ncin g 	 a v a il a bili t y 
risk
w e 	 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 
loc al 	 fisc al 	 deficit s 	 and 	 dif ficulties 	 in	
securing additional facilities if needed 
and at a reasonable cost
potential impact
we suffer increased costs which reduce 
demand 	 resulting 	 in 	 lower 	 revenue 	 and or	
margins we face a negative impact on 
c ash 	 flow 	 leng th y 	 t ax 	 litig ation 	 proces ses	
and possible reduction in group’s 
aftertax earnings
appetite
we are eager to ensure as stable and as 
predictable an environment as possible  
in relation to fx  fuel tax funding and 
l iq u idi t y 
net risk m ov ement
“we remain satisfied with our funding 
and liquidity position we have three 
main sources of longterm debt funding 
as at 9 december 2013 – these include 
the external bank revolving credit 
facilities totalling £1120m which mature 
in june 2015 a £350m convertible  
bond due october 2014 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 have hedged the majority of our  
fuel and currency requirements for the 
seasons currently on sale which gives  
us certainty of costs when planning 
capacity and pricing”
groupwi de
ongoing
•	 ensuring that hedging cover for fuel and foreign currency is taken out ahead of source 
mark et 	 customer 	 booking 	 profiles 	 to 	 pro vide 	 cer t aint y 	 of 	 input 	 cost s 	 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
•	 maint aining 	 high qualit y 	 relationships 	 with 	 t a x 	 authorities 	 through 	 regular	
communication keeping them informed of the commercial reality of our business 
operations 
•	 monitoring 	 our 	 funding 	 and 	 liquidit y 	 position 	 to 	 ensure 	 k ey 	 f acilities 	 are 	 refinanced 	 well	
ahead of maturity we recognise the impact that different aspects of our operations can 
ha ve 	 on 	 our 	 acces s 	 to 	 financial 	 f acilities 	 and 	 seek 	 to 	 ensure 	 that 	 these 	 are 	 appropriately	
understood and controlled
•	 maint aining 	 high qualit y 	 relationships 	 with 	 the 	 group’ s 	 k ey 	 financier s 	 and 	 monitoring	
compliance 	 with 	 the 	 co venant s 	 cont ained 	 within 	 our 	 financing 	 f acilities 
progress
•	 secured a £300m mediumterm bank credit facility available until april 2016 giving 
greater 	 flexibilit y	 in 	 our 	 financing 	 and 	 acces s 	 to 	 fur ther 	 funds 	 as 	 required 	 this 	 reflec t s 	
the 	 bank s ’ 	 ongoing 	 confidence 	 in 	 our 	 str ateg y  	 busines s 	 model 	 and 	 oper ational	
competence 
•	 raised 	 o ver 	 £ 4 0 0 m 	 of 	 longterm 	 financing 	 for 	 nine 	 aircr af t 	 scheduled 	 for 	 deliver y 	 during	
f y 1 4 	 this 	 financing 	 was 	 r aised 	 on 	 competitive 	 terms 	 through 	 a 	 combination 	 of 	 finance	
leasing and sale and leaseback
see ‘our five strategic drivers’ page 16
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strategic report
 
bu siness and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
risk 
category
operational
natu re and 
ex tent of risk
cu rrent  
mitigation
consu mer 
demand
strategic  
driv ers
content
brands  
distribu tion
tech nol ogy
grow th  
 scal e
peopl e
contex t
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 	 as ses s 	 their 	 financial 	 situation
risk
we do not respond successfully to 
changes 	 in 	 consumer 	 demand 	 and or 	 the	
consumer preference for late booking
potential impact
our shortterm growth rates and margins 
are lower than anticipated
appetite
we are willing to consider all options  
to 	 secure 	 and 	 impro ve 	 the 	 flexibilit y  	
resilience and attractiveness of our 
business model
net risk m ov ement
“the travel market continues to be  
driven by high growth in online bookings 
and while the uncertain economic 
environment has had an effect on 
consumer travel spending habits 
demand for leisure travel remains 
strong”
“overall we are pleased with trading  
at the start of our new financial year 
winter 201314 performance is in line 
with expectations with 60 of the 
programme sold for summer 2014  
we are encouraged by early trading 
despite strong comparatives in 
particular we continue to see strong 
demand for our unique holidays”
groupwi de
ongoing
•	 maintaining our focus on creating lifetime relationships with our customers through  
great service and fantastic lifetime experiences 
tou r operator
ongoing
•	 a s ses sing 	 our 	 produc t 	 of fering 	 in 	 the 	 contex t 	 of 	 the 	 confidence 	 levels 	 and 	 cost 	 of 	 living	
pressures being experienced by our customers 
•	 e xploiting 	 the 	 flexibilit y	 and 	 resilience 	 of 	 our 	 busines s 	 model 	 and 	 the 	 func tionalit y 	 of	 
our sophisticated capacity and yield management systems in order to drive margins  
and 	 profit s 	 grow th 	 by 	 ensuring 	 that 	 c apacit y 	 is 	 aligned 	 ver y 	 closely 	 to 	 forec ast s 	
progress
•	 developed and launched a panmainstream allinclusive 3 concept ‘suneoclub’ 
featuring a series of bright modern and friendly allinclusive hotels offering new 
st andards 	 of 	 qualit y 	 and 	 af fordabilit y 	
•	 established the mainstream purchasing team to act globally and focus on purchasing  
the 	 right 	 produc t 	 at 	 the 	 right 	 price 	 to 	 pro vide 	 direc t 	 value 	 to 	 our 	 customer s 	 and 	 benefit	
hoteliers
onli ne accommodation
ongoing
•	 continuing to exploit our model which involves minimum commitment risk and operates 
extremely well in relation to the online lates market
global financial  
factors
secured a £300m  
mediumterm credit 
facility ensuring greater 
fi n a n ci a l 	 fl e x ibili t y 	 a n d	
fur ther 	 funds 	 as 	 r equir ed
consumer  
demand
‘suneoclub’ – the new 
concept launched focusing 
on 	 quality 	 simultaneous	 
to affordability for the 
consumer
see ‘our five strategic drivers’ page 16
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stra te gic r e por t
principal risk table
continued
risk 
category
operational
natu re and 
ex tent of risk
cu rrent  
mitigation
poli tical 
vo l atili ty 
natu ral 
catastroph es 
and ou tbreak s
strategic  
driv ers
content
grow th  
 scal e
context
providers of holiday and travel services are 
exposed to the inherent risk of domestic 
a n d  or 	 in t er n a t i on a l 	 in ci den ts 	 a ff e ct in g	
so m e 	 c o u n tri e s d e s ti n a ti o n s 	 w i th i n 	 th e i r	
operations during the summer months we 
faced disruption in both turkey and egypt
risk
w e 	 are 	 not 	 able 	 t o 	 respond 	 ef ficiently	 
and effectively to large scale events 
potential impact
w e 	 suf f er 	 significant 	 operational 	 disrupti on	
in our source markets and destinations 
leading 	 t o 	 significant 	 losses 	 holida y	
cancellations repatriation of customers 
and a general decline in consumer demand 
and increase in our insurance premiums
appetite
we are willing to consider all options to 
secure 	 and 	 impr o v e 	 the 	 flexibility	 and	
resilience of our business model in order to 
withstand adhoc shocks to our operations 
net risk m ov ement
“we operate in a market segment that  
as a matter of course has to weather  
geopolitical events as a result it is  
vital that we have a strong and resilient 
business model that enables us to deliver 
on our strategy which in turn drives 
longterm sustainable growth and 
increased shareholder returns”
groupwi de
ongoing
•	 maint aining 	 a 	 balanced 	 destination 	 mix 	 to 	 minimise 	 concentr ation 	 and 	 ha ving 	 flexible 	
supplier 	 agreement s 	 in 	 order 	 to 	 enable 	 c apacit y 	 to 	 be 	 switched 	 as 	 required
•	 lever aging 	 our 	 unique 	 produc t s 	 and 	 our 	 strong 	 br and 	 to 	 drive 	 earlier 	 booking  	 giving	 
us more time to react to external events
•	 reviewing trading outlooks destination by destination 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
•	 t r acking 	 hotel 	 commitment s 	 and 	 prepa yment s 	 on 	 a 	 timely 	 and 	 suf ficiently 	 gr anular	 
basis 	 to 	 manage 	 our 	 financial 	 exposure 	 to 	 justifiable 	 levels 
•	 promoting 	 the 	 benefit s 	 of 	 tr a velling 	 with 	 a 	 recognised 	 and 	 leading 	 tour 	 oper ator	 
to 	 increase 	 consumer 	 confidence 	 and 	 peace 	 of 	 mind
progress
•	 developed a standard set of terms and conditions for our mainstream accommodation 
contracts from summer 2014 with clauses that contain termination rights following force 
majeure 	 or 	 euro 	 break up	
risk 
category
operational
natu re and 
ex tent of risk
cu rrent  
mitigation
tal ent 
management 
strategic  
driv ers
tech nol ogy
peopl e
contex t
the group’s success depends on its ability 
to retain key management and it relies on 
having good relations with its colleagues
risk
we are unable to attract and retain talent 
build future leadership capability and 
maintain the commitment and trust of  
our employees
potential impact
we do not maximise on our operating 
result s 	 and 	 financial 	 per formance
appetite
we are willing to invest in the appropriate 
level of competence and capability to 
drive the future success of our business
net risk m ov ement
“our colleagues are the true driver of the 
business their commitment endeavour 
and passion to deliver incredible travel 
experiences for our customers is proven 
in the exceptional results we have 
announced this financial year”
groupwi de
ongoing
•	 assessing 	 our 	 organisati onal 	 c ompet enc e 	 and 	 capability 	 against 	 that 	 required 	 t o 	 maximise	
current and future shareholder value 
•	 ensuring 	 suc c essi on 	 plans 	 ar e 	 in 	 plac e 	 f or 	 all 	 identified 	 business 	 critical 	 r oles 	 in 	 par ticular	
emergency successors for all source market and sector board roles and that these plans 
are reviewed every six months 
•	 u sing our groupwide leadership framework including our your voice survey to engage 
and empower people whilst delivering results and managing performance
•	 building our pipeline of leadership talent through our international graduate l eadership 
p r ogramme 	 which 	 attracts 	 de v elops 	 and 	 r etains 	 high 	 quality 	 graduat es 	 t o 	 bec ome 	 our	
future senior commercial l eaders 
•	 driving high performance and engagement through our performance review development 
plans and career planning process 
•	 e xt ending 	 our 	 ‘ risk 	  	 c ontr ol 	  	 doing 	 the 	 right 	 thing’ 	 objectiv es 	 do wn 	 thr ough 	 the	
organisation as part of developing a strong culture of effective risk governance
•	 e xt ending 	 c ompet ency 	 t esting 	 of 	 our 	 k e y 	 financ e 	 manag ement 	 in 	 order 	 t o 	 assess 	 the	
adequacy 	 of 	 the 	 skillset 	 of 	 individual 	 financ e 	 managers 	 as 	 w ell 	 as 	 the 	 c ompet ency	 
of 	 the 	 financ e 	 c ommunity 	 within 	 k e y 	 businesses 	 and 	 acr oss 	 the 	 gr oup 	 as 	 a 	 whole
•	 focusing on digitally enabling our people in support of our commitment to be an online 
driven company 
progress
•	 invested in a number of online tools to support the creation of a digital workplace so our 
people can build on their knowledge and move towards a transformation in learning and 
career development
•	 introduced a suite of global high potential l earning  development programmes designed 
f or 	 our 	 talent 	 in 	 the 	 early 	 stag es 	 of 	 their 	 car eers 	 or 	 who 	 ha v e 	 been 	 identified 	 as 	 suc c essors	
to commercial senior leadership roles in the future
•	 built on the successful launch of our finance academy with a number of modules designed 
t o 	 driv e 	 up 	 le v els 	 of 	 financial 	 maturity 	 within 	 our 	 various 	 businesses 	 f or 	 both 	 financial 	 and	
non fi n a n ci a l 	 emplo y e e s	
7riskv48 copyindd   50 18122013   1058 the ordering 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
51 tui travel p l c annu al re po rt  acc ounts 2013
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strategic report
 
bu siness and financial rev iew
 
directors’ report
 
financial statements
 
sharehol der information
risk 
category
compli ance
natu re and 
ex tent of risk
cu rrent  
mitigation
regul atory 
envi ronment
strategic  
driv ers
content
grow th  
 scal e
contex t
industries in which the group operates 
are highly regulated particularly in 
relation to consumer protection aviation 
and the environment
risk
we do not establish an effective system  
of internal control to ensure we operate  
in compliance with all legal and regulatory 
r eq u i r e me n t s 
potential impact
we suffer negative impact which damages 
our reputation results in reduced revenue 
and or 	 higher 	 input 	 cost s 
appetite
we are committed fully to being a good 
corporate citizen in all of the countries  
in which we operate
net risk m ov ement
“the last 12 months have seen significant 
developments at the european level  
with the commission proposing new 
legislation in the area of air passenger 
rights and bringing forward proposals 
for reform of the package travel 
directive we have engaged consistently 
with the commission as they have 
developed these proposals and will 
engage over the coming 12 months  
with the european parliament and the 
council of ministers as they come to 
consider the suggested reforms in detail”
“tui travel is a truly worldwide 
organisation and we are committed  
to operating our business in a 
sustainable manner we have a 
threeyear sustainable holidays plan 
launched in 2012 which sets out four 
overarching goals with 20 measurable 
and challenging commitments to 
responsible tourism”
groupwi de
ongoing
•	 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 	 interest s 	 of 	 industr y 	 and	
consumers and treats all industry players fairly
•	 lobbying 	 for 	 greater 	 clarit y 	 and 	 simplific ation 	 of 	 the 	 package 	 t r a vel 	 direc tive 	 to 	 ensure	 
a 	 level 	 pla ying 	 field 	 acros s 	 the 	 industr y 	 for 	 all 	 those 	 inv olved 	 in 	 put ting 	 together 	 more	
than 	 one 	 element 	 of 	 a 	 holida y 	  flight 	 tr anspor t ation 	 accommodation 	 ex cur sions 	 etc  
•	 maintaining a comprehensive antibribery  corruption abc training programme 
across the group in order to 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 	 adequac y 	 and 	 ef fec tivenes s 	 of 	 the 	 abc 	 procedures 	 and 	 measures	
est ablished 	 including 	 self  cer tific ation 	 t wice 	 a 	 year 	 by 	 all 	 of 	 our 	 busines ses 	 acros s 	 the	
group 
progress
•	 worked with other industry stakeholders to develop a counter proposal to the recent 
ruling by the european court in relation to air passenger rights which we believe will 
both reduce our exposure and also safeguard the longerterm interests of our customers 
•	 r eviewed 	 the 	 ef fec tivenes s 	 of 	 our 	 flight	 planning 	 and 	 est ablished 	 appropriate 	 monitoring	
controls for ontime performance as a way of both improving customer service and 
minimising the impact of the recent ruling by the european court
•	 commenced lobbying to simplify the package travel directive in order to make it easier 
to understand for both the customer and the industry
•	 committed to developing more sustainable holidays and to reducing the environmental 
impac t 	 at 	 each 	 st age 	 of 	 our 	 customer’ s 	 journey  	 e st ablished 	 a 	 dedic ated 	 sust ainable	
development team to support the group and work closely with business management 
see our sustainable development section on page 26
•	 achieved 	 our 	 airline 	 c arbon 	 reduc tion 	 t arget 	 of 	 9 	 20 0 8  201 4  	 one 	 year 	 ahead 	 of	
schedule 	 through 	 a 	 mix ture 	 of 	 oper ational 	 ef ficiencies  	 fuel 	 conser vation 	 ac tivities 	
capacity amendments and airline enhancements 
•	 invested 	 signific antly 	 in 	 cut ting 	 edge 	 a viation 	 technolog y 	 including 	 the 	 boeing 	 7 87	
dreamliner aircraft which are forecast to emit 20 less co2 per passenger than 
comparable aircraft today the new innovative split scimitar winglets reducing fuel  
burn 	 by 	 an 	 additional 	 2  	 and 	 commit ted 	 to 	 purchasing 	 6 0 	 boeing 	 73 7 	 ma x 	 aircr af t 	 
with 	 impro ved 	 fuel ef ficienc y 	 201 8 	 deliver y 
•	 r ecognised 	 in 	 the 	 top 	 tier 	 of 	 the 	 f tse 	 3 50 	 for 	 c arbon 	 repor ting 	 following 	 the	
introduction of u k legislation on carbon reporting for the largest u k companies we  
are 	 a 	 third 	 more 	 fuel 	 and 	 c arbon 	 ef ficient 	 than 	 the 	 a ver age 	 scheduled 	 c arrier 	 in 	 europe	
and are now calling for greater transparency and reporting of consistent metrics across 
all 	 airlines 	 so 	 that 	 the 	 government 	 c an 	 consider 	 adjusting 	 it s 	 t a x es 	 f airly 	 and	
proportionately 
•	 implemented a webbased sustainability data software solution to further improve  
dat a 	 accur ac y  	 increase 	 dat a 	 collec tion 	 frequenc y 	 and 	 provide 	 repor ting 	 that 	 suppor t s	
advanced 	 monitoring 	 and 	 t argeting 	 of 	 fur ther 	 ef ficienc y 	 oppor tunities 	
•	 established a group health  safety compliance function to oversee and ensure that 
the health  safety management systems employed by our businesses are compliant 
with group policy and that there is appropriate protection in place for both our 
customers and our colleagues 
•	 established group l egal  regulatory compliance function to improve our central 
oversight understanding and control of local practices in relation to abc antimoney 
l aundering know your supplier know your customer and competition l aw 
•	 u sed the newly established group it compliance function to support the group l egal  
 regulatory compliance function by improving central oversight understanding and 
control relating to pci dss and data protection
•	 l aunched 	 our 	 supplier 	 code 	 of 	 conduc t 	  a vailable 	 in 	 1 1 	 languages  	 which 	 is 	 the 	 fir st 	 time	
a set of social and ethical values has been given to our suppliers this plays an important 
role 	 in 	 our 	 vision 	 reflec ting	 our 	 value 	 of 	 responsible 	 leader ship 	 in 	 the 	 tr a vel 	 industr y 
see ‘our five strategic drivers’ page 16
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strategic report
uk in cid en t d ata octob er 2012 to septemb er 2013
uk incident category
airline 
equivalent
1
uk  ireland
crawley and 
other businesses total
number of incidents 480 51 50 581
number of oversevenday incidents
2
23 1 24 48
number of riddor major incidents – 2 – 2
number of riddor fatalities – – – –
1 where an incident occurs outside the united kingdom it is not reportable under the riddor legislation but the business reports it as an ‘riddor equivalent’
2 where due to an accident at work an employee is unable to perform their normal work duties for more than seven consecutive days 
health  safety
•	 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 and
•	 providing guidance advice and support to operating businesses
while primary responsibility for hs management remains at the 
bu s ine s s 	 uni t 	 or 	 oper at ion al 	 lev el 	 w i t hin 	 t he 	 s ec tor s  	 t hi s 	 fir s t 	 line	
of defence is augmented by the group hs compliance department 
through the activities described above further assurance that 
sound hs management systems are employed is provided by group 
audit services 
employee safety
the range of potential hazards faced by our employees is as varied as 
the products offered across the group for example employees working 
i n 	 o u r 	 o f fic es 	 a n d 	 r eta i l 	 o utl ets 	 ha v e 	 a 	 r e la tiv e ly 	 l o w risk 	 w o rkp la c e  	 wh i l e	
those employed in the marine or aviation engineering departments 
have a relatively higherrisk workplace 
the hazards faced by our employees and others affected by our 
activities are subject to workplace risk assessments which highlight 
areas of concern and enable the development of measures to control 
or remove the hazards safety management systems continue to be 
developed and adapted by the individual businesses and both sector 
a nd 	 d ivisi o na l 	 hs 	 p r o f essi o na ls 	 assist 	 ea c h 	 b usi ness 	 with 	 the i r 	 spec ific	
hs management needs
the group hs induction programme – safety in your workplace 
– continues to be used to provide a baseline of hs knowledge 
for employees since its launch in 2008 over 8000 employees have 
completed the programme
within the united kingdom any relevant injuries diseases or dangerous 
occurrences are reported under the reporting of injuries diseases and 
dangerous occurrences regulations riddor the incident statistics 
for the uk for 201213 are given below
within the united kingdom local and national authorities continue to 
visit various group premises offering advice and highlighting relevant 
issues no enforcement notices or convictions have occurred within  
the 	 2 0 1 2 1 3 	 financial 	 y ear 
the group attaches great importance to the health and safety hs 
of its customers and employees at all levels of the business andrew john 
group director – secretariat health  safety and risk formerly group 
legal director  company secretary continues to be the group 
management board gmb member with responsibility for reporting  
to the gmb on hs matters
sectors and the divisions and businesses within them continue to liaise 
cooperate and share best practice in line with the tui travel hs policy 
statement issued and signed by the chief executive peter long 
in the group airlines a riskbased safety management system which 
engages the whole airline at all levels in safety management is used 
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 each group 
a i rl i n e 	 has 	 c l e a rly 	 i d e n tifie d 	 a c c o u n ta b l e 	 se n i o r 	 ma na g e rs 	 r espo nsi b l e 	 f o r	
sa f et y 	 in 	 the 	 k e y 	 ar eas 	 o f 	 flight	 opera ti ons 	 tra ining  	 gr ound 	 operati ons	
and engineering the national aviation authorities regularly inspect and 
audit each airline’s safety management system
in 	 o ur 	 nona via ti on 	 business 	 opera ti ons 	 se v eral 	 sign ificant 	 hs	 
related developments have occurred during the year including
•	 the analysis of the results of the hs questionnaire sent to all 
businesses across the group by the group legal  regulatory 
compliance department
•	 group audit services conducted a series of audits to assess hs 
management systems in each mainstream business and to ensure 
these are closely coordinated across the sector and
•	 an hs project team has been created under the ‘modern 
mainstream’ concept tasked with looking at hs standards and 
how these are coordinated and implemented across the 
mainstream sector
at group level the board authorised the creation with effect from 
1 july 2013 of a small group hs compliance department tasked with
•	 monitoring hs management systems across the group collating  
the relevant data and arranging for regular reporting to the gmb  
and the board against established key performance indicators 
kpis and key risk indicators kris
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strategic report
 
business and financial rev iew
 
directors’ report
 
financial statements
 
shareholder information
customer safety
each of the sectors has responsibility for ensuring that sound customer 
hs practices and robust safety management systems are embedded 
within their businesses 
in the mainstream sector the uk  ireland business has outsourced 
certain aspects of its hs activities to specialist external thirdparty 
providers who supply services related to general customer safety 
this includes audits of overseas accommodation transport and excursion 
suppliers utilising a mix of physical visits and selfassessments new 
builds and major refurbishments as well as targeted hygiene water 
and 	 f ood 	 sa f et y 	 c onsultanc y 	 when 	 h ighrisk 	 ar eas 	 ar e 	 identified	
these thirdparty providers are instructed and monitored by our 
ukbased team which sets the hs strategy agrees the audit 
schedule and takes responsibility for the development and 
implementation of the uk  ireland mainstream safety management 
system 
in our german businesses there is a dedicated hs team which is 
responsible for all hs matters together with the development and 
implementation of standards to ensure the wellbeing of all customers 
regular checks are undertaken and all relevant areas are monitored 
and reviewed on a continuous basis to identify any potential risks 
in the nordics hs activities across the mainstream businesses 
sweden norway denmark and finland are coordinated through 
the crisis management  sustainability business development team 
this team is responsible for setting hs strategy undertaking audits 
and for the operation and development of the tui nordic safety 
management system 
the 	 specialist 	  	 ac tivit y 	 sec t or 	 sa s 	 opera t es 	 a 	 sec t or specific 	 hs	
function the sector’s hs team consists of 12 professionals based in 
the uk and overseas servicing all six sas divisions audits of suppliers 
are undertaken utilising a mix of physical inspections and supplier self
assessments by means of ‘sure2care’ – the inhouse webbased due 
diligence system 
durin g 	 the 	 y ear  	 an 	 enhanc ed 	 syst em 	 o f 	 ‘ risk 	 pr ofiling ’ 	 was 	 intr oduc ed	
against which all sas businesses are measured appropriate safety 
management systems are devised and implemented according to the 
risk s 	 identified 	 with in 	 ea ch 	 business
in the accommodation  destinations sector ad hs is managed 
by each individual division and business these businesses are either 
involved in the supply of traditional destination market services such as 
accommodation excursions and transportation or in the online supply 
of hotel accommodation in many countries the ‘sure2care’ inhouse 
safety system tool is used to verify the safety of the products and 
services being marketed
 
the strategic report was approved by a duly authorised committee 
of the board of directors on 9 december 2013 and signed on its 
behalf by 
peter long
chief executive
9 december 2013
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bus in ess and f in an cial rev iew underlying results
1
statutory results
£m 2013 2012 change  2013 2012
revenue 15051 14460 4 15051 14460
operating profit 589 490 20 297 301
profit before tax 473 390 21 181 201
free cash flow
2
427 305 40 427 305
basic eps pence 308 258 19 54 125
dividend per share pence 135 117 15 135 117
1  underlying operating profit excludes separately disclosed items acquisition related expenses impairment of goodwill and available  
for sale financial assets and interest and taxation of results of the group’s joint ventures and associates
2 restated to reflect the exclusion of restricted cash and predelivery payments
group performance 
year ended 30 september
group revenue grew by 4 from the prior year to £15051m 
2012 £14460m this result was driven by organic growth of 2 
and a foreign currency translation impact of 2 organic revenue 
growth was driven by higher package volumes and average selling 
prices in many source markets
the main drivers of the yearonyear improvement in underlying 
operating profit are as follows
£m
2012 underlying operating profit 490
mainstream trading 34
french contract provision 11
accommodation wholesaler 10
specialist  activity 12
other 2
business improvement 46
2013 underlying operating profit at constant currency 555
fx translation 34
2013 underlying operating profit 589
underlying operating profit improved by £65m to £555m in 2013 
on a constant currency basis an increase of 13
the improvement in operating profit was driven by strong 
performances in the uk germany and nordic region as well as the 
delivery of £46m cost savings through the business improvement 
programme these cost savings were primarily driven by back office 
restructuring and it platform replacement across a number of 
markets however these positive results were partially offset by 
weakness in our french tour operator and specialist  activity sector
a reconciliation of underlying operating profit to statutory operating 
profit is as follows
year ended 30 september
2013 
£m
2012
£m
underlying operating profit 589 490 
separately disclosed items 24 92
acquisition related expenses 65 62
impairment of goodwill 188 20
impairment of available for sale financial asset – 10
taxation on profits and interest of joint 
ventures and associates 15 5
statutory operating profit 297 301 
william waggott 
chief financial officer
£589m
underlying operating 
profit for 2013
£46m 
cost savings through the 
business improvement 
programme
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strategic report
 
business and finan cial revie w
 
directors’ report
 
financial stateme nts
 
sharehol der information
f leet
having taken delivery of our first boeing 7878 dreamliner aircraft 
earlier this year we announced on 19 november 2013 that we are 
ordering two additional 7878 aircraft the additional order takes the 
group’s commitment from 13 to 15 dreamliners with the additional 
two aircraft expected to arrive in 2016 tui travel operates six airlines 
four of which operate or will operate dreamliner aircraft thomson 
airways arkefly tui fly nordic and jetairfly
as well as long haul we also confirmed plans to renew our shortmid 
haul fleet during the year on 9 july 2013 we announced the order of 
60 narrowbody boeing 737 max aircraft from boeing as part of our 
fleet renewal strategy and move to modern mainstream the 737 max 
aircraft utilise a new technology engine type from cfm which boeing 
asserts results in a 13 improvement in fuel efficiency and a 40 
noise reduction over today’s main competitors this results in lower per 
seat costs than current generation aircraft and competitor products 
the delivery period for the 60 committed aircraft will start in january 
2018 and run until march 2023 we also have the option and right to 
purchase up to a further 90 boeing 737 max aircraft
acquisitions  investments
acquisitions were made in the year for a total investment value of 
£30m in order to expand business operations in line with the group’s 
growth strategy businesses acquired during the year primarily related 
to the 501 of tui infotec gmbh that the group did not already 
own and 100 of the share capital of jbs group isango and tt 
visa services
net financial expenses
net financial expenses have increased from £100m to £116m primarily 
as a result of oneoff gains in the prior year not repeating of £9m 
coupled with £7m higher expenses from asset backed financing in the 
current year
the revision to ias 19 ‘employee benefits’ is effective for the financial 
year commencing 1 october 2013 and makes significant changes to the 
recognition measurement and disclosure of defined benefit pension 
schemes the most significant impact for the group is that interest 
expense will be calculated by applying the discount rate on the net 
defined benefit liability this replaces the interest cost on the defined 
benefit obligation and the expected return on plan assets had the 
standard been applied in the current financial year the group’s net 
financial expense would have been £12m higher
separately disclosed items sdis
separately disclosed items net to a £24m expense in the year 2012 £92m 
expense the following table provides a breakdown of these items
2013
£m
2012
£m
restructuring 54 102 
pension credit 25 –
other 5 10
total sdis 24 92 
the separately disclosed items expense includes the following items
• £25m occurring in france from the ongoing restructure of the tour 
operator and the airline
• £18m incurred in the specialist  activity sector due to the removal 
of the sector management team the closure of a business in the 
l anguages division further restructuring of the adventure business 
and rationalisation of overseas bases in the marine division
• £7m in accommodation  destinations sector due to a 
rationalisation of business structure in several regional programmes 
• £25m pension credit relating to the closure of the tui netherlands 
defined benefit pension scheme and transfer of the existing pension 
fund assets and liabilities to aegon
further information is included within note 4
goodwill impairment charge
the total goodwill impairment charge recognised in the year was 
£188m this included a £119m impairment within specialist  activity 
primarily across the education marine and sport businesses and a 
£69m impairment within mainstream primarily relating to businesses 
trading in north africa 
further information is included within note 10
taxation
the underlying effective rate of taxation for the year ended 
30 september 2013 is calculated based on the underlying profit before 
tax excluding separately disclosed items acquisition related expenses 
and impairment charges for the year of £473m and is calculated at 
27 based on the current structure of the business and existing local 
taxation rates and legislation it is expected that the underlying tax rate 
will be maintained at this level in the medium term
the actual tax rate of 72 differs from the underlying effective tax 
rate due to the tax effect of the nonrecognition of tax losses in france 
and goodwill impairment charges of £188m on which no tax deduction 
is available
15 
increase in full year 
dividend per share 
2012 
underlying
mainstream 
trading
french
contract
writeoffs
business 
improve’t
accom
wholesaler
specialist 
 activity
other 2013
constant 
currency
fx 2013 
underlying
£490m
£34m £11m
£46m
£10m £12m
£2m £555m
£34m £589m
13
yoy
growth
20
yoy
growth
gr oup opera tin g pr ofi t brid ge
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bus in ess and f in an cial rev iew the cash tax rate is expected to be lower than the underlying income 
tax rate as we utilise our deferred tax assets generated from 
restructuring expenditure and trading losses during the year the 
group paid £14m of uk cash corporation tax and a further £96m  
of cash corporate taxes in other jurisdictions in the coming year we 
envisage a cash tax rate of approximately 20 of underlying profit 
before tax
in october 2013 the group reached agreement on the terms to settle 
a tax audit with the spanish tax authorities further information is 
included within note 8
earnings per share
underlying basic earnings per share was 308p 2012 258p  
statutory basic earnings per share was 54p 2012 125p
dividends
the board is recommending a final dividend of 975p per share 
2012 830p on 10 may 2013 the board recommended an interim 
dividend of 375p per share 2012 340p making a full year dividend of 
135p per share 2012 117p the final dividend will be paid on 9 april 
2014 to holders of relevant shares on the register at 7 march 2014
the group’s policy is to maintain underlying dividend cover at around 
two times we intend to continue to operate a dividend reinvestment 
plan as an alternative to receiving a cash dividend
cash and liquidity
the net cash position cash and cash equivalents less loans overdrafts 
and finance leases at 30 september 2013 was £2m 30 september 
2012 net debt of £142m this excludes restricted cash of £145m 
2012 £34m the increase in restricted cash is primarily due to receipt 
of £98m from the belgian government in relation to disputed vat in  
a longrunning court case further information is included in note 17
the net cash position consisted of £1753m of cash and cash 
equivalents which includes restricted cash of £145m £594m of current 
interestbearing loans and liabilities and £1012m of noncurrent 
interestbearing loans and liabilities as at 30 september 2013 undrawn 
committed borrowing facilities totalled £1192m 2012 £1018m
cashflow conversion is 90 of underlying profit before tax free cash 
flow improved by 40 to £427m 2012 £305m analysed as follows
2013
£m
2012
£m
underlying operating profit 589 490 
depreciation and amortisation included 
within underlying operating profit 202 152 
underlying ebitda
1
791 642 
working capital movement 172 104 
capital expenditure net of disposals 217 209
pension funding 74 42
tax 110 82
interest 71 60
exceptional cash costs 64 48
free cash flow 427 305 
1 earnings before interest tax depreciation and amortisation
we remain satisfied with our funding and liquidity position we have 
three main sources of longterm debt funding as at 9 december 2013 
– these include the external bank revolving credit facilities totalling 
£1120m which mature in june 2015 a £350m convertible bond due 
october 2014 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 signed a mediumterm £300m bank credit facility during the year 
maturing in april 2016 this was to ensure the group was in a position 
if required to redeem the £350m convertible bond that matures in 
october 2014 we expect to refinance our bank revolving credit facility 
approximately 12 months ahead of its maturity date
group performance 
year ended 30 september continued
83 
of uk bookings are  
for unique holidays
20 
increase in underlying 
operating profit growth
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strategic report
 
business and finan cial revie w
 
directors’ report
 
financial stateme nts
 
sharehol der information
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 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
1 delivering mainstream growth
we are 18 months into running this sector in a more cohesive way 
which we are calling “one mainstream” this move is enabling us to 
fully leverage both the strength of expertise across the sector and 
the scale of the group our mainstream business reported a record 
performance over the year with underlying operating profits growing 
by 22 to £514m since the creation of the mainstream board a lot 
has been achieved
• our single purchasing team is responsible for purchasing £45bn  
of accommodation across all our mainstream businesses gaining  
key exclusivities driving down cost and managing commitments to 
ensure we leverage our scale as europe’s largest tour operator
• we have a unified approach to the development of international 
unique holiday concepts
• the distribution and online function is responsible for developing 
and agreeing the direct distribution strategy across all source 
markets
• within digital transformation we are taking a single approach across 
booking systems platforms customer engagement tools and digital 
content 
• inresort services is focused on delivering a modern efficient 
digitally enabled service to our customers in resort
• the group’s five leisure airlines are reducing duplication driving  
best practice investing once for the benefit of all five airlines and 
improving flexibility wherever possible
• across the sector benchmarking of cost and revenue positions  
has led to clear business efficiency targets to drive down costs  
in the back office and drive ancillary revenue benefits
• one mainstream enables us to further develop our customer 
proposition and our customer experience function will ensure that 
we consistently touch every part of our customer’s journey one 
mainstream continues to evolve delivering greater benefits as one 
business across the strategic drivers of unique holidays direct 
distribution and operational efficiency 
11 unique holidays only available from tui travel
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 very difficult for our 
competitors to replicate these holidays
sales of higher margin unique holidays during the year increased by 
four percentage points to 69 of mainstream holidays this includes 
the uk and germany which both saw sales of unique holidays increase 
by four percentage points the nordics market saw unique holidays 
increase by one percentage point over the year in the uk 93 of 
thomson holidays were unique in summer 2013 we achieved a 
customer satisfaction score of 79 for our three largest mainstream 
markets a two percentage point increase over the prior year driven  
by improved scores in all three source markets demand for unique 
holiday experiences continues to see strong growth and our customers 
are more delighted than ever with the holiday experiences we have 
designed for them
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 this year we 
have successfully launched our awardwinning digital assistant app in 
the uk and german markets the apps have received almost 200000 
downloads to date and good levels of engagement with almost 100000 
shares through social media channels 
other markets will launch on the same platform during 2014 giving  
us one common mobility platform across all markets the digital 
assistant is a key driver in maintaining the ongoing customer 
relationship and will be used to link our people more effectively with 
our customers any time anywhere any way with an ongoing pipeline 
of features continuing to be added including mobile boarding passes 
seat selection and upgrade search and book functionality as well  
as an ability to create personalised recommendations and offers  
to connect our people with our customers we are digitally enabling  
our inresort teams with tablets to effectively connect our physical 
presence with the digital world 
flight experience
a key part of our unique holiday offering is also the flight experience 
and 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 we were the first uk operator to  
take delivery of the boeing 7878 dreamliner earlier this year and 
remain the only integrated tour operator to operate these aircraft  
the customer experience is very important to us and the feedback we 
receive from those who fly on these aircraft is exceptional the boeing 
787 family provides unmatched fuel efficiency resulting in exceptional 
environmental performance the aircraft uses 20  less fuel than 
today’s aircraft of a similar size we are also enabling a single set of 
operating procedures for the boeing 7878 dreamliner fleet across 
engineering maintenance and crew creating a more flexible and 
efficient fleet
having a modern costefficient and reliable fleet is strategically 
important to the group we are strongly positioned with a young 
aircraft fleet compared to other leisure airlines the average age of  
our fleet is eight years however a significant portion of our narrow 
body fleet consists of boeing 737800 aircraft which have an average 
age of 55 years 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 in july 2013 our shareholders approved 
an order for 60 new boeing 737max aircraft with deliveries beginning 
in 2018 along with an option and right to acquire up to 90 further 
aircraft this will further reduce the average age of our fleet resulting 
in tui travel continuing to operate one of the youngest and most fuel 
efficient airlines in europe
12  distributed directly to the customer – growth from 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 
one percentage point over the year to 66 of mainstream sales with 
improvements in all key source markets the improvement in direct 
distribution was driven by the online channel which also increased by 
two percentage points in 2013 to 35 of mainstream sales during the 
year we generated £37bn of revenue online within our mainstream 
business reflecting 12 growth in online package bookings
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bus in ess and f in an cial rev iew one online platform
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 the uk and 
nordic markets have made this transition and are seeing significant 
improvements in conversion as a result of the redesigned user 
experience and search functionality that makes it easier for the 
customer to find their perfect holiday experience with us our other 
core markets will begin using the same online platform during the 
course of 2014 the websites in our core online markets are now tablet 
and mobile optimised as our customers increasingly use their tablets 
and mobile devices to dream plan search and book with us
next generation retail stores
we continue to modernise our retail offering in the uk we have 
launched the first of our next generation stores which combine 
personal advice and service with a rich digital experience that enables 
customers to build their perfect holiday this will be integrated into  
a holiday planner tool that allows them to take their ideas home with 
them and book using whatever channel they choose
13 leveraging 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 is 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 
during the year overheads as a percentage of sales fell by 60bp from 
52 to 46 we expect to hold overheads in absolute terms and  
as a result overheads as a percentage of sales will reduce further
2 organic specialist  activity growth
the specialist  activity sector offers a wide range of unique activity 
and experience based holidays to 14m 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 2013 the specialist  activity sector underwent a strategic 
review which included a change in management a reduction of  
central costs from streamlining backoffice operations and the exit  
of a number of unprofitable lines of business as a result overall sales 
were down on the prior year now that this review is complete we are 
confident of delivering underlying annualised profit growth of 810  
at constant currency in the year ahead 
we are investing in our online platforms to enhance booking and 
search functionality and provide our customers with inspirational 
content to showcase our products our specialist businesses are 
making good progress in consolidating their finance and reservation 
systems to leverage our scale across multiple brands and continue  
on their journey of standardisation while balancing the varied 
requirements of the different holiday experiences they offer 
3  leveraging our global leadership position in 
accommodation wholesaler through growth 
in existing markets
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 l atin america and africa the total online 
accommodation market accounts for £87bn of global travel spend 
with the accommodation wholesaler market accounting for £17bn  
of this spend 
accommodation wholesaler continues to consolidate its global 
leadership position delivering ttv growth of 23 to £1655m during 
the year with a strong performance from asia and l atin america 
roomnights grew by 16 to 193 million during 2013 with hotel 
inventory also increasing by 16 to 62000 hotels accommodation 
wholesaler delivered a 28 growth in underlying operating profit 
during the year at constant currency rates
4 investing in accommodation ota
in accommodation ota online travel agent our focus is to build on 
our strong brand positioning of l ateroomscom 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 6 to £422m during the year 
this decline was driven by a delay in migration to a new online 
platform for l aterooms the new platforms are now in place 
delivering an improved user experience l aterooms continues to 
benefit from strong brand recognition and s eo search engine 
optimisation visibility on the mobile front we designed and delivered 
mobileoptimised websites for l aterooms asiarooms and malapronta 
as well as making a number of significant improvements to the 
l aterooms and asiarooms apps 
5  focus on free cash flow generation roic and 
operational efficiency
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
during the year we generated record cash flow with free cash 
improvement of £122m to £427m underlying roic has improved 
again this year by 26 percentage points to 148 this increase was 
driven by the strong improvement in earnings during the year we 
generated a cash conversion rate of 90 in 2013 up by 12 percentage 
points we continue to target a cash conversion rate of at least 70 
going forward
we have been successful in implementing our groupwide business 
improvement programmes this year the total savings made this  
year equates to £46m an acceleration of the target outlined at the 
start of year these cost savings were primarily driven by back office 
restructuring and it platform replacement across a number of 
markets 
our drive to improve efficiency does not stop here our one 
mainstream platform is already in place and yielding tangible benefits 
the move from multiple platforms to one core platform is a key driver 
of efficiencies going forward 
our growth levers 
creating shareholder value continued
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strategic report
 
business and finan cial revie w
 
directors’ report
 
financial stateme nts
 
sharehol der information
segmental performance
segmental performance is based on underlying financial information which excludes certain items including 
separately disclosed items acquisition related expenses and impairment of goodwill
mainstream
the mainstream sector reported an underlying operating profit of £514m 2012 £420m on a constant 
currency basis underlying operating profit increased by 16 to £486m 
2013 2012 change
customers ‘000
uk 5232 5158 1
nordics 1600 1502 7
germany 6001 6425 7
france 1585 1956 19
other 5093 5068 1
total 19511 20109 3
 
revenue £m
uk 3879 3634 7
nordics 1223 1084 13
germany 4161 3917 6
france 1077 1263 15
other 2528 2420 4
total 12868 12318 4
underlying operating profitloss £m
uk 251 197 27
nordics 79 71 11
germany 113 87 30
france 60 47 28
other 131 112 17
total 514 420 22
mainstream key performance indicators 
unique mix 69 65 4pp
customer satisfaction – key source markets 79 77 2pp
direct distribution mix 66 65 1pp
online mix 35 33 2pp
overheads  of revenue 46 52 06pp
the main drivers of the yearonyear change in underlying operating profit are summarised in the following table
£m uk nordics germany france other mainstream
2012 197 71 87 47 112 420
trading 48 5 6 28 3 34
french contract writeoffs – – – 11 – 11
business improvement 6 – 9 23 5 43
2013 at constant currency 251 76 102 63 120 486
fx translation – 3 11 3 11 28
2013 251 79 113 60 131 514
£514m 
mainstream sector 
underlying operating 
profit 2012 £420m
tuifly named most  
climate‑efficient airline
in atmosfair’s 2013 airline index tuifly was 
named the world’s ‘most climate efficient 
charter airline’ for the second year in a row  
it was also named the world’s ‘most climate
efficient airline with over 1 million passengers’ 
this came as the airline reduced average fuel 
consumption per passenger to a record low  
of 26 litres per 100km35 lower than the 
average german airline
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bus in ess and f in an cial rev iew uk
key performance indicators 2013 2012 change pts
unique mix 83 79 4pp
direct distribution mix 89 87 2pp
online mix 47 44 3pp
the uk business delivered a £54m improvement in underlying 
operating profit to £251m during the year this translates to an 
operating margin of 65 a 110 basis point improvement over the 
prior year this record result was driven by strong load factors focus 
on higher margin unique holidays increasingly distributed online and  
a 5 increase in package volumes during the year
demand for our unique holidays remained strong over the period 
accounting for 83 of departures up four percentage points on the 
prior year we expanded a number of unique holiday products over  
the summer season driven by customer demand including couples 
splash and sensatori concepts the result also benefited from a two 
percentage point increase in direct distribution to 89 compared with 
the prior year online bookings accounted for 47 of all bookings up 
three percentage points yearonyear as part of our mobile strategy 
we launched the mythomson app into the apple app store in june 
with high ratings and over 180000 downloads to date 
the uk business delivered £6m of efficiency savings towards the 
business improvement programme in the period
nordics
key performance indicators 2013 2012 change pts
unique mix 93 92 1pp
direct distribution mix 89 87 2pp
online mix 67 65 2pp
nordics achieved an underlying operating profit of £79m 2012 £71m 
this improved position was driven by strong trading in the tour 
operator a nonrepeat of the flooding in bangkok which adversely 
affected the result last year and 8 increase in package volumes 
during the year the nordic business maintained a strong underlying 
operating margin of 65
unique holidays accounted for 93 of departures broadly in line with 
the prior year but masking a shift to higher margin concept hotels within 
this mix in particular there was strong demand for our blue couples 
and blue star concepts direct distribution increased by two percentage 
points to 89 online distribution continues to grow standing at 67 
of bookings up two percentage points over the prior year
germany
key performance indicators 2013 2012 change pts
unique mix 51 47 4pp
direct distribution mix 36 34 2pp
online mix 8 4 4pp
germany reported a strong underlying operating profit up by £26m  
to £113m 2012 £87m l onghaul performed particularly well with 
strong demand to thailand usa and cuba whilst overall package 
volumes were flat during the year primarily due to a refocused 
programme unique holidays saw yearonyear growth the operating 
margin for the german business increased by 50 basis points to 27 
in 2013 driven by higher margins in greece in particular following the 
euro crisis during 2012 
unique holidays accounted for 51 of departures up four percentage 
points over the prior year demand has been driven by the robinson 
and sensimar brands and our new tui reisewelten labels beach 
classic l ifestyle nature premium and scene which have been well 
received by our customers 
we continue to implement our strategy to improve direct distribution 
with a focus on online via our tuicom website direct distribution 
stands at 36 an increase of two percentage points over the prior 
year on the retail side we intend to roll out tui branding across the 
majority of our owned and franchised shops online continues to grow 
and stood at 8 of bookings in 2013 up by four percentage points 
from the prior year a key focus remains mobile optimisation and 
following the yearend we have launched the meine tui app in 
germany this is the adapted version of the mythomson digital 
assistant app that launched in the uk earlier this year we expect  
to roll out the app across other source markets during 2014 
the german business delivered £9m of efficiency savings towards the 
business improvement programme in the period restructuring will 
continue to focus on simplifying the corporate structure through the 
2014 financial year 
france
key performance indicators 2013 2012 change pts
unique mix 81 74 7pp
direct distribution mix 56 59 3pp
online mix 18 21 3pp
france reported an underlying operating loss of £60m 2012 loss of £47m 
the higher loss versus last year was driven by the tour operator which 
continued to be impacted by low demand for north africa and general 
weakness in the french economy as a result we have reduced our 
lossmaking longhaul programme removed unprofitable routes and 
destinations from the portfolio as well as providing for £11m of 
onerous french hotel contracts 
the french tour operator delivered £11m of efficiency savings towards 
the business improvement programme in the period we implemented 
further restructuring in the french business towards the end of the 
year to streamline our backoffice and retail functions in light of a 
continuing adverse trading environment an additional £19m of 
restructuring costs was recognised in the 2013 income statement as 
separately disclosed items and we expect the cash impact for this to  
be spread over the next two years the combination of shop closures 
and headcount reductions will deliver a further £15m cost reduction 
by 2017 
the airline result significantly improved from the prior year moving 
very close to a breakeven position the turnaround was driven by 
changes to the fleet composition which saw two new a330300 
aircraft arriving during the period a smaller more flexible fleet  
will help to reduce risk within the programme in addition to this 
significant improvements were made to the customer experience with 
increased customer service standards the restructuring programme 
in the french airline is now complete with £12m of efficiency savings 
towards the business improvement programme delivered in the period
underlying operating loss £m 2013 2012 change pts
tour operator 59 32 84
airline 1 15 93
60 47 28
other
the other source markets generated operating profit growth of 17 
to £131m 2012 £112m driven by a strong performance from our 
canadian associate and the belgian business 
the belgian business incorporating jet4you delivered £2m of 
efficiency savings towards the business improvement programme in 
the period the polish business delivered £3m of efficiency savings 
towards the business improvement programme leading to a profitable 
overall performance during the period
segmental performance
continued
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accommodation  destinations
accommodation  destinations ad delivered an underlying operating profit of £78m 2012 £66m this 
reflects £10m growth in accommodation wholesaler and £4m positive impact of foreign currency translation
ttv for the sector increased by 11 to £31bn 2012 £28bn this was primarily driven by growth in 
hotelbeds and bedsonline in accommodation wholesaler and by our cruise handling business intercruises
accommodation  destinations 2013 2012 change 
key performance indicators
accommodation wholesaler roomnights online 16
accommodation ota traffic online 7
accommodation ota roomnights online 6
incoming passenger volumes 7
revenue £m 750 664 13
underlying operating profit £m
online accommodation 40 35 14
inbound services 38 31 23
total 78 66 18
the main drivers of the yearonyear change in underlying operating profit are summarised in the table below
£m
online 
accommodation inbound services
accommodation 
 destinations
2012 35 31 66
trading – 5 5
accommodation wholesaler 10 – 10
accommodation ota 7 – 7
2013 at constant currency 38 36 74
fx translation 2 2 4
2013 40 38 78
emerging markets
emerging markets reported an underlying operating loss of £12m in the year 2012 loss of £15m the result 
for this sector reflects our continued investment in brand and distribution in russia and the cis both of 
which were also impacted by the continued unrest in egypt
emerging markets share of jv 2013 2012 change 
underlying operating profit £m 12 15 20
protecting biodiversity in the dominican republic
the accommodation  destinations sector is working with 
the nature conservancy to preserve the del este national 
park in the dominican republic the sector works closely 
with excursion suppliers to ensure they are using cleaner 
engines avoiding reef damage and minimising waste from 
tourism this partnership works with both private and public 
sector stakeholders to manage and preserve the national 
park as well as meeting government ministers to influence 
the sustainable management of the area
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bus in ess and f in an cial rev iew segmental performance
continued
specialist  activity
specialist  activity reported a profit of £41m 2012 £48m reflecting the exit of a number of unprofitable 
lines of business tough comparatives in the sports business and higher costs in our marine business 
however this lower result was partially offset by strong margins in our ski business as well as improved 
trading in the adventure business 
during the year the specialist  activity sector underwent a period of restructuring where we reduced 
central and backoffice costs across the business some of this restructuring cost was absorbed into the 
underlying 2013 sector result this restructuring is now largely complete and the business is on track to 
deliver growth in 2014 as set out in our road map
specialist  activity 2013 2012 change 
customers ‘000 1403 1586 12
revenue £m 1433 1478 3
underlying operating profit £m
1
41 48 15
the specialist  activity sector delivered £3m of efficiency savings towards the business improvement 
programme in the period
online accommodation
the online accommodation business delivered underlying operating 
profit of £40m 2012 £35m reflecting a strong underlying performance 
in accommodation wholesaler as well as the expansion in asia for our 
ota business and investment in our recent brazilian ota acquisition 
malapronta ttv for online accommodation grew by 17 to £21bn and 
roomnights increased by 10 primarily due to strong organic growth 
from our accommodation wholesaler brands hotelbeds and bedsonline 
accommodation wholesaler continues to consolidate its global 
leadership position delivering ttv growth of 23 to £1655m during 
the year with a strong performance from asia and l atin america 
roomnights grew by 16 to 193 million during 2013 with hotel 
inventory also increasing by 16 to 62000 hotels accommodation 
wholesaler delivered a 28 growth in underlying operating profit 
during the year 
accommodation ota ttv declined by 6 to £422m during the year 
this decline was driven by a delay in migration to a new online 
platform for l aterooms the new platforms are now in place 
delivering an improved user experience l aterooms continues to 
benefit from strong brand recognition and s eo visibility on the mobile 
front we designed and delivered mobileoptimised websites for 
l aterooms asiarooms and malapronta as well as making a number  
of significant improvements to the l aterooms and asiarooms apps 
inbound services
the inbound services business delivered underlying operating 
profit of £38m 2012 £31m this was driven by a good underlying 
performance from the business £2m positive translation impact  
and by a reallocation of overhead costs from the accommodation  
 destinations sector to the emerging markets sector 
incoming passenger volumes increased by 7 over the prior year 
in cruise handling the number of port calls handled increased by 8
1  underlying operating profit  
excludes separately disclosed items 
amortisation of business combination 
intangibles acquisition related 
expenses impairment of goodwill and 
available for sale financial assets and 
interest and taxation of results of the 
group’s joint ventures and associates
i‑to‑i football coaching in brazil
this year itoi launched a football coaching voluntourism 
project in brazil as well as teaching football volunteers 
mentor disadvantaged children aged 6 to 18 years old  
to help them build life skills and confidence supporting  
60 children in 2013 the project was founded by former 
professional and semiprofessional football players  
whose lives have benefitted from football and who have 
discovered a healthier way of living by participating  
in sports 
17
growth in ttv in online 
accommodation in 2013 
compared to 2012
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current trading and outlook
s ummer 2014
for summer 2014 we are pleased with early trading despite facing 
strong comparatives from the prior year and continue to see strong 
demand for our unique holidays to date approximately 13 of the 
overall mainstream summer programme has been sold we currently 
expect capacity for our summer 2014 programme to be in line with  
last year although we have the flexibility in our model to make 
strategic capacity changes on select highmargin opportunities our 
restructured specialist  activity business has had a good start to the 
year whilst accommodation wholesaler continues to see doubledigit 
growth driven by asia and l atin america 
fuelforeign exchange
we have hedged the majority of our fuel and currency requirements 
for the seasons currently on sale 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 5 december 2013 winter 201314 summer 2014
euro 91 74
us dollars 93 86
jet fuel 89 78
outlook
overall we are pleased with trading at the start of our new financial 
year winter 201314 performance is in line with expectations with 60 
of the programme sold for summer 2014 we are encouraged by early 
trading despite strong comparatives in particular we continue to see 
strong demand for our unique holidays our accommodation wholesaler 
business is seeing sustained doubledigit growth driven by asia and 
l atin america whilst our restructured specialist  activity business  
has had a good start to the year and is on track to deliver growth as 
set out in our roadmap at this stage we continue to expect to hold 
our winter loss and deliver a h1 result broadly in line with last year 
excluding the timing of easter which falls in the second half of the year
tui travel is structurally well positioned with a robust business  
model that gives us a longterm competitive advantage the business 
continues to deliver sustainable growth through our unique holiday 
experiences increasingly distributed online whilst leveraging its scale 
as one organisation this in turn will drive further value for both our 
customers and shareholders building on this year’s outperformance 
where we have achieved a 13 underlying operating profit growth 
on a constant currency basis we remain confident that we will deliver 
consistently on our five year annualised growth target of between 
7 to 10 underlying operating profit growth at constant currency 
winter 201314
performance for winter 201314 is in line with our expectations 
to date 60 of the overall mainstream winter programme has been 
sold as a result of the unrest in egypt we have actively remixed the 
programme and reduced our capacity to egypt which now accounts 
for less than 5 of the total programme all markets now have their 
egypt programmes back on sale however demand is lower than last 
year overall mainstream bookings excluding egypt are down by 4 
with average selling prices up 5 in germany bookings are down 9 
excluding egypt with the majority of this decline relating to the high 
volume but lower margin overland programme whilst our core unique 
package holiday offering continues to deliver in line with expectations 
trading in specialist  activity is in line with expectations whilst the 
accommodation wholesaler continues to grow strongly with ttv up 
by 24 driven by the l atin american and asian markets
current trading
1
winter 201314
yoy variation
total
asp
2
total
sales
2
total 
customers
2
total 
customers
2
 
exc egypt
programme 
sold 
mainstream 
uk 6 2 4 1 52
nordics 1 3 2 9 73
germany 6 4 10 9 58
france tour operators 15 27 37 33 70
other
3
3 1 4 flat
total mainstream 5 4 8 4 60
total mainstream excl 
france tour operators 4 2 6 2
accommodation 
wholesaler
4
1 24 23
1  these statistics are up to 1 december 2013 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  these statistics refer to online accommodation businesses only sales refer to total 
transaction value ttv and customers refers to roomnights
60 
overall mainstream 
winter programme sold 
up to 1 december 2013
23 
growth in 
accommodation 
wholesaler ttv 
compared to 2012
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tax 
the group’s approach to 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 we look to pay the right and fair amount of taxes 
in accordance with the letter and spirit of the laws in the countries in 
which we 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
context
the effective tax rate on the group’s underlying profit before tax for 
2013 was 27 the group paid cash income taxes of £110m 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 ever greater 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 with 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’s length 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 advisors 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
tax governance
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 group tax director 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 recurrence
the location of our businesses 
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 
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sh areh ol der in formation
territory
2013 
£m
2012 
£m
australia 2 1
belgium 21 12
denmark 2 –
dominican republic 1 –
finland 3 –
france 6 –
germany 26 32
greece – 2
mexico 2 3
morocco 5 –
n etherlands 6 2
n orway 4 –
portugal 1 –
spain 12 17
sweden 4 5
turkey – 2
united kingdom 14 2
others payments less than £1m 5 6
total 110 82
payment of taxes
in the year ended 30 september 2013 the group paid corporate 
income taxes of £110m as per the table below
the amounts shown below represent the corporate income tax or 
corporation tax and cash tax payments made by the group and its 
subsidiary companies during the year ended 30 september 2013 
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 £14m is the corporation tax paid in the 
year ended 30 september 2013 this is lower than may be expected 
due to the utilisation of losses brought forward from earlier years and 
tax depreciation uk 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 elationships with tax authorities
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 co
operative 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 that governments 
around the world introduce 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 
paymen t of taxes
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dire ctor s’ r e por t
friedrich joussen
nonexecutive chairman age 50 
 
friedrich joussen joined the board on 8 february 2013 as a nonexecutive 
director and was appointed nonexecutive chairman on 25 march 2013 he was 
appointed a member of the executive board of tui ag on 15 october 2012 and 
took over as chief executive officer of tui ag on 13 february 2013 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’ 
sir michael hodgkinson
 
†
 
• 

nonexecutive deputy chairman and senior independent director  
age 69 
sir michael hodgkinson joined the board of first choice holidays plc first 
choice as a nonexecutive director in january 2004 and became chairman  
in march 2004 he joined the board of tui travel plc on 28 june 2007 as 
nonexecutive deputy chairman and is the senior independent director 
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 he has been chairman of 
keolis uk limited since 11 october 2011
peter long
chief executive age 61
peter long joined the board on 28 june 2007 as chief executive in november 
1996 he was appointed group managing director of 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 2005 and is currently the senior independent 
nonexecutive director in october 2013 peter was appointed president of the 
family holiday association a ukbased charity which provides short breaks  
away from home for more than 2000 disadvantaged families
johan lundgren
deputy chief executive age 46
having worked in the tourism industry for 27 years johan is the deputy chief 
executive responsible for the mainstream sector and was appointed to the board 
on 21 december 2007 prior to his appointment as deputy chief executive in 
october 2011 he was managing director of the northern region of tui travel’s 
mainstream sector which includes the source markets uk and 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 
william waggott
chief financial officer age 50
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 
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
dr volker böttcher
managing director german specialist businesses age 54
volker böttcher joined the board on 19 june 2007 after an early career in law 
volker joined touristik union international in 1987 as a legal adviser having 
occupied various management positions he became head of tui’s special 
programmes division in 1996 which included responsibility for longhaul 
destinations city tours and the eastern mediterranean he was appointed to  
the board of tui deutschland gmbh in april 2000 following the restructuring  
of tui’s business model in germany he was appointed ceo of tui deutschland 
gmbh in july 2001 in 2003 volker was appointed chairman for central europe 
for tui ag being responsible for all tourism activities in the source markets  
of germany austria switzerland and poland after the reorganisation of the 
mainstream sector in 2012 volker was appointed managing director for german 
specialist businesses and source markets austria poland and switzerland 
horst baier 
nonexecutive director age 56
horst baier joined the board as a nonexecutive director on 13 october  
2009 he commenced his professional career in the treasury department of 
continental ag the german tyre manufacturer between 1994 and 1996 horst 
was responsible for group financing for the furthbased schickedanz group  
in 1996 he took over responsibility for the treasury accounting and tax 
department at tui ag since 2001 horst has been responsible for accounting  
 reporting for tui ag and in november 2007 was appointed to the executive 
board of tui ag with responsibility for the controlling function in february 
2010 horst was appointed chief financial officer of tui ag
tony campbell
independent nonexecutive director age 63
tony campbell became a nonexecutive director of first choice in april 1997 
and joined the board of tui travel plc on 28 june 2007 as a nonexecutive 
director tony was deputy chief executive of asda stores limited until march 
2001 he is currently the chairman of t m lewin group limited the white 
company uk limited a nonexecutive director of the original factory shop 
and a director of data transfer  communications limited
board of directors 
as at 30 september 2013
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shareholder information
our bo ar d
friedrich joussen
sir michael hodgkinson
peter long
johan lundgren
william waggott
dr volker böttcher
horst baier
tony campbell
sebastian ebel
janis kong
coline mcconville
minnow powell
dr erhard schipporeit
dr albert schunk
harold sher
from left to right as at 9 december 2013 
sebastian ebel
nonexecutive director age 50
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 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 
janis kong
independent nonexecutive director age 62 • 
janis kong joined the board on 29 may 2012 as a nonexecutive director  
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 is also currently a nonexecutive director at two other publicly
quoted companies kingfisher plc and portmeirion group plc in addition  
janis is a nonexecutive director of network rail and visitbritain as well as a 
nonexecutive board member of copenhagen airports as she stood down  
as chairman of the board of trustees of forum for the future in july 2012  
after six years
coline mcconville 
independent nonexecutive director age 49 ∞ 

coline mcconville joined the board on 21 september 2011 her background is  
in management marketing media and strategic consulting she spent 10 years  
at clear channel international limited where as chief executive for europe  
she was responsible for operations across 58 countries including the uk france 
italy and spain coline began her career in management consultancy working 
with both mckinsey  co in london and the lek partnership in munich  
she is a law graduate with an mba from harvard coline was appointed as a 
nonexecutive director of wembley national stadium limited on 29 march  
2012 and of utv media plc with effect from 21 november 2012
minnow powell
independent nonexecutive director age 59 
◊
 
minnow powell a chartered accountant became a nonexecutive director  
in april 2011 during his 35 years at deloitte he 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 minnow was appointed as a 
nonexecutive director of supergroup plc with effect from 1 december 2012  
and now chairs that company’s audit committee
dr erhard schipporeit
independent nonexecutive director age 64
dr erhard schipporeit joined the board as a nonexecutive director on 
29 october 2007 he 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  
 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 
erhard is currently a nonexecutive director of a number of companies including 
sap ag deutsche boerse ag talanx ag and hanover rueckversicherung ag
dr albert schunk
independent nonexecutive director aged 72
dr albert schunk joined the board as a nonexecutive director on 29 october 
2007 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 in 1994 he became a member of the european economic and social 
council in brussels and has recently been advising the riu group in spain
harold sher
independent nonexecutive director age 66 
 
harold sher joined the board as a nonexecutive director on 29 october 2007 
he studied commerce at university and started his career as a chartered 
accountant harold moved to industry early in his career holding a range of 
executive positions before being appointed chief executive of amalgamated 
metal corporation plc in 1992 a position he still holds he has served as 
president of a major north american steel services group and together with  
his role at amalgamated metal corporation this has provided him with broad 
international commercial experience
†
  
nomination committee chairman
  
a member of the nomination committee
∞  
r emuneration committee chairman
•  
a member of the r emuneration committee
◊
 
  audit committee chairman
   a member of the audit committee
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board proceduresresponsibilities
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 agm 
the schedule of matters includes 
•	 determining the strategy of the group 
•	 amendments to the structure and capital of the group 
•	 appr o val 	 of 	 financial 	 r epor ting 	
•	 oversight of the group’s internal controls
•	 appr o val 	 of 	 capital 	 and 	 r e v enue 	 expenditur e 	 of 	 a 	 significant 	 siz e 	
•	 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 
int ernal 	 c ontr ols 	 – 	 which 	 include 	 financial 	 operati onal 	 and 	 c omplianc e	
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 34 and 35
chairman’s introduction
the board of tui travel plc believes its effectiveness and that of 
the group should be underpinned by a strong corporate governance 
frame w ork 	 w e 	 ha v e 	 put 	 in 	 pla c e 	 r obust 	 and 	 ef ficient 	 g o v ernanc e	
systems throughout the group and within this framework have 
worked hard to establish and embed procedures and processes 
throughout all our operations 
the board’s main role is to work alongside the executive team to give 
support and advice but also to provide challenge where appropriate 
in order to drive continued and sustained improvement across all 
our businesses
while we evaluate our performance and effectiveness formally as 
a board each year we ensure this is a continuing process so that we 
are able to react quickly in the fastchanging environment in which 
we operate
we believe the board is well balanced with a broad range of skills and  
a deep understanding of the challenges which face us now and in the 
future we have made good progress across the governance agenda 
some of which is highlighted in the following pages during 2014 we 
will continue to review proactively the business decisions made and  
the governance framework in which we operate 
friedrich joussen
chairman
compliance – uk corporate governance code provisions
the company has complied with all relevant provisions of the uk 
corporate governance code september 2012 the “code” except in 
respect of code provision a31 – the chairman should on appointment 
meet the independence criteria set out in code a31 see page 70
leadership
for audit committee report see page 73 nomination committee 
report see page 78 and remuneration committee report see page 79
corporate governance report
board governance structure 
the board of tui travel plc
audit committee
delegated authorities
monitor s 	 the 	 integrit y 	 of 	 our 	 financial 	 repor ting 	
the performance of the internal audit function 
and of the external auditor and reviews the 
effectiveness of the group’s systems of internal 
control and related compliance activities
members
minnow powell – chairman
sir michael hodgkinson
janis kong
coline mcconville
nomination committee
delegated authorities
ensures that the board and its committees has 
the optimum balance of skills knowledge and 
experience by nominating suitable candidates  
f or 	 appro val 	 b y 	 the 	 board 	 to 	 fill 	 ex ecutiv e 	 and	
nonexecutive vacancies
members
sir michael hodgkinson – chairman
friedrich joussen
minnow powell
harold sher
remuneration committee
delegated authorities
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
members
coline mcconville – chairman
janis kong
sir michael hodgkinson
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strategic report
 
business and financial rev iew
 
directors’ report
 
financial statements
 
shareholder information
following the introduction of a secure ipadbased paperless meeting 
system in 2012 its successful rollout has progressively resulted in the 
replacement of hard copy packs with electronic versions paperless 
meetings are now the norm not only for the tui travel plc board 
and its committees the group management board and sector board 
meetings but also many other business meetings being held on a daily 
basis throughout the group the ease with which the system has been 
adopted and cascaded across many different areas of the organisation 
has been better than we could ever have anticipated – this supports 
our online drive across the group and is consistent with reducing the 
impact of our operations on the environment
attendance of directors at meetings of the board 
and its committees 
board 
meetings
nomination 
committee 
meetings
audit 
committee 
meetings
remuneration 
committee 
meetings
friedrich joussen
1
 chairman 66 11 – –
d r 	 m i c h ae l 	 fre n ze l
2
44 – – 33
sir michael hodgkinson 
senior independent director 
 deputy chairman 99 11 1010 66
peter long chief executive 99 – – –
johan lundgren  
deputy chief executive 89 – – –
executive directors
d r 	 v o l k e r 	 b ő t tc h e r	 
md german specialist businesses 99 – – –
will waggott 99 – – –
independent nonexecutive directors
tony campbell 99 – – –
janis kong 99 – 1010 66
coline mcconville 99 – 1010 66
minnow powell 99 11 1010 –
erhard schipporeit 69 – – –
dr albert schunk 99 – – –
harold sher 99 11 – –
nonexecutive directors  
not considered independent
horst baier 99 – – –
sebastian ebel
3
55 – – –
rainer feuerhake
4
33 – – 22
figures in brackets indicate the maximum number of meetings during 
the year in which the individual was a board member 
notes
1 appointed to the board with effect from 8 february 2013
2 chairman of the board until he retired on 25 march 2013
3 appointed to the board with effect from 25 march 2013
4 nonexecutive director until he retired on 8 february 2013
dr erhard schipporeit was unable to attend three of the meetings of the 
boar d 	 as 	 the y 	 c onflic t ed	 with 	 meetings 	 alr eady 	 in 	 his 	 diar y 	 f or 	 list ed	
companies in germany he is the chairman of the audit committee  
for all three companies
meetings of the nonexecutive directors
a meeting of the nonexecutive directors took place in february 2013 
with sir michael hodgkinson in the chair the main focus of the meeting 
was 	 t o 	 appraise 	 dr 	 f r enz el 	  who 	 was 	 then 	 the 	 chairman  	 and 	 discuss	
general operational matters
two meetings have been scheduled for 2014 and others will be held  
as the need arises
the key elements of the control framework and review processes  
in place across the group are as follows 
•	 the board sets corporate strategy and business objectives 
the gmb and sector management integrate these objectives  
int o 	 their 	 opera ti onal 	 and 	 financial 	 business 	 plans	
•	 the gmb meets regularly together with other senior executives to 
c onsider 	 gr o up 	 opera ti onal 	 and 	 financial 	 per f ormanc e 	 and 	 business	
development the chief executive reports to the board on behalf 
o f 	 the 	 gmb 	 on 	 sign ificant 	 chan g es 	 in 	 the 	 business 	 and 	 the 	 ex t ernal	
en vir onment  	 the 	 ch ief 	 financial 	 of fic er 	 pr o vides 	 the 	 boar d	
with 	 financial 	 inf orma ti on 	 wh ich 	 includes 	 k e y 	 per f ormanc e 	 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 
ch ief 	 financial 	 of fic er 	 and 	 gr o up 	 t r easur er 
•	 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 also 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 
nec essar y 	 t o 	 r emedy 	 an y 	 deficiencies 	 identified 	 thr ough 	 the 	 gr oup ’ s	
internal control and risk management processes see page 42
the audit committee on behalf of the board has reviewed the 
ef f ec tiv eness 	 o f 	 int ernal 	 c ontr ols 	 durin g 	 the 	 y ear 	 and 	 c onfirms 	 that 
•	 there is an ongoing process for identifying evaluating and  
mana gin g 	 the 	 sign ificant 	 risk s 	 fa c ed 	 b y 	 the 	 gr oup 
•	 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
•	 the process accords with the code
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 by the company secretary on a regular basis the board 
appr o v es 	 an y 	 nec essar y 	 amendment s 	 t o 	 r eflec t	 chang es 	 in 	 legislati on	
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 to the company secretary’s knowledge 
no such advice was sought by any director during the year 
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
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in accordance with the code all directors will be subject to annual 
reelection by shareholders to enable shareholders to make an informed 
decision the 2014 notice of the annual general meeting agm includes 
biographical details and a statement as to why the company believes 
the 	 dir ec t ors 	 should 	 be 	 r eelec t ed 	 the 	 chairman 	 int ends 	 t o 	 c onfirm	 
at the agm that the performance of each individual continues to be 
effective and demonstrates commitment to the role 
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 
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 
r egist er ed 	 of fic e 	 and 	 will 	 be 	 a vailable 	 at 	 the 	 a g m 	 which 	 is 	 scheduled	 
to take place on thursday 6 february 2014 
following the appointment of any new director the chairman in 
conjunction with the company secretary ensures that a full formal 
and tailored induction to the company is made available the company 
secretary is on hand to answer any questions which may arise all 
directors have been given a detailed induction and training manual 
during the year friedrich joussen and sebastian ebel have had 
detailed overviews on all the sectors across the group as part of  
their induction programme 
directors’ conflicts of interests 
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 
int er est 	 that 	 c onflic t s	 or 	 possibly 	 may 	 c onflic t	 with 	 the 	 int er est s 	 of	
the 	 c ompan y  	 dir ec t ors 	 of 	 public 	 c ompanies 	 may 	 a uthorise 	 c onflic t s 	
and 	 pot ential 	 c onflic t s	 wher e 	 appr opriat e  	 if 	 the 	 ar ticles 	 of 	 associati on	
contain a provision to this effect 
the board is aware of the other commitments of its directors and is 
satisfied 	 that 	 these 	 do 	 not 	 c onflic t	 with 	 their 	 duties 	 as 	 dir ec t ors 	 of	 
the 	 c ompan y  	 the 	 pr oc ess 	 f or 	 monit oring 	 c onflic t s	 is 	 as 	 f ollo ws
•	 changes to the commitments of all directors are reported to 
the board
•	 the 	 dir ec t ors 	 ar e 	 r equir ed 	 t o 	 c omplet e 	 a 	 c onflic t s	 questi onnair e	
on appointment and annually thereafter
•	 an y 	 c onflic t s	 identified 	 ar e 	 pr esent ed 	 t o 	 the 	 boar d 	 f or 	 c onsiderati on	
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 
the y 	 bec ome 	 a war e 	 of 	 an y 	 a c tual 	 or 	 pot ential 	 c onflic t	 situati ons	
or a change in circumstances relating to an existing authorisation
the board believes that the procedures established to deal with 
c onflic t s	 of 	 int er est 	 ar e 	 operating 	 ef f ec tiv ely 
company s ecretary 
as part of his retirement plan and in line with the company’s succession 
planning andrew john has decided to step down from his role as 
group legal director  company secretary andrew will continue in 
a new role within the organisation and will remain on the gmb during 
a 12month transition period with effect from 1 october 2013 there 
are two new appointments – mike bowers formerly general counsel 
mainstream tour operating as group legal director and joyce walter 
formerly deputy company secretary as company secretary joyce is 
a fellow of the institute of chartered secretaries and administrators 
and has been deputy company secretary since the merger in 2007
effectiveness
board composition 
our board consists of 15 directors – 13 of whom served throughout 
the year at 30 september 2013 in addition to the chairman friedrich 
joussen there were four executive directors and 10 nonexecutive 
directors friedrich joussen and sebastian ebel were appointed as 
nonexecutive directors on 8 february and 25 march 2013 
r espec tiv ely  	 on 	 2 5 	 mar ch 	 2 0 1 3  	 dr 	 micha el 	 f r enz el 	 r etir ed 	 fr om 	 his	
position as nonexecutive chairman of the board and was replaced  
by friedrich joussen 
independence of nonexecutive directors
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 5448 shareholder 
of the company as at 30 september 2013
deta ils 	 o f 	 the 	 cha irman ’ s 	 o ther 	 sign ificant 	 c ommitment s 	 ar e 	 giv en	 
in his biography on page 66 he has no other external roles and the 
boar d 	 is 	 c onfident 	 tha t 	 he 	 has 	 suf ficient 	 time 	 t o 	 per f orm 	 his 	 duties	
as chairman of the company
of the other 10 nonexecutive directors horst baier and sebastian ebel 
are also not considered to be independent as they are both members 
of tui ag’s executive board 
the nonexecutive directors considered to be independent are 
sir michael hodgkinson tony campbell janis kong coline mcconville 
minnow powell dr erhard schipporeit dr albert schunk and 
harold sher 
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 2013 the board is committed 
to ensure that its membership is refreshed on a regular basis 
s kills and experience
biographical details for each of the directors are set out on page 66 
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
•	 assessin g 	 risk 	 and 	 the 	 int egrit y 	 o f 	 the 	 financial 	 inf ormati on	
and controls and
•	 constructively challenging the chief executive and 
executive directors
corporate governance report 
continued
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strategic report
 
business and financial rev iew
 
directors’ report
 
financial statements
 
shareholder information
our 	 ab c 	 due 	 dilig enc e 	 ar ound 	 highrisk 	 pr ofile 	 c ontra c ting 	 has 	 been	
improved during the year we are proud of our new supplier code of 
conduct detailing the group’s ethical and compliance expectations of 
suppliers 	 this 	 is 	 one 	 of 	 the 	 first 	 of 	 it s 	 kind 	 in 	 our 	 industr y 	 and 	 has	
been in roll out to all our material suppliers since may 2013 see 
sustainable development on page 26 antibribery responsibilities  
are now included in all new supplier contracts 
gr oup 	 audit 	 ser vic es 	 administ er 	 a 	 y early 	 c onflic t	 of 	 int er est	
declaration for 2000 senior managers which will extend to new joiners 
in 2014 
whistleblowing 
whistleblowing hotlines are now fully operational in the uk usa 
canada 	 german y  	 f ranc e  	 swit z erland 	 p oland 	 bel gi um 	 nor way 	
sweden finland denmark italy spain russia ukraine bulgaria china 
hong kong india indonesia jamaica malaysia malta mauritius mexico 
p eru 	 p or tugal 	 brazil 	 singapor e  	 south 	 a frica 	 t urk e y  	 vietnam 	 and	
the british v irgin islands 
this covers 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 austria is completing its data protection authority’s approval 
pr oc ess 	 and 	 ex cluding 	 austria 	 these 	 c onfidential 	 hotlines 	 and 	 w ebmail	
reporting facilities now cover 99 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 legal  regulatory compliance department works  
in conjunction with group audit services to investigate and advise  
on any incidents around the group
the tui travel code of conduct makes it clear that employees can 
approach senior executives or group audit services to make reports 
and emphasises that anyone making a report with honest intentions 
need not fear any adverse consequences even if the information 
provided proves to be unfounded
competition compliance
a comprehensive competition training knowhow and support 
programme is in development 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 
the training programme which consists of facetoface seminars for 
senior management and elearning for other colleagues will be 
progressively rolled out during 2014 and will require them t o 	 r eaf firm	
their commitment to leading responsibly and competing vigorously  
in all our markets
performance evaluation
each year the performance of the board and its committees audit 
remuneration and nomination is evaluated this year the evaluation 
was 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 
every third year the evaluation is facilitated by an independent external 
advisor which was the case last year in accordance with the code
summary reports were produced following analysis of the responses by 
br oad 	 ca t eg or y 	 and 	 b y 	 r ef er enc e 	 t o 	 a 	 tra f fic light 	 syst em 	 sho wing 	 the	
number of red amber and green scores the board and its committees 
considered the reports of their effectiveness at their meetings in 
sept ember 	 2 0 1 3 	 and 	 w er e 	 sa tisfied 	 with 	 the 	 o v erall 	 sc or es 	 a s 	 a 	 r esult	
of this year’s evaluation the board intends to
•	 enhance further its contribution to and focus on strategic planning 
•	 provide more opportunities for the directors to meet with 
executives and senior managers to assist in succession planning and
•	 continue to work towards ensuring that the composition of the 
boar d 	 r eflec t s	 the 	 div ersit y 	 o f 	 the 	 c ompan y’ s 	 employ ee 	 base 	
in the year ahead the board will continue to review its effectiveness 
and procedures
dr 	 m i c ha e l 	 f r e nz e l’ s 	 p e r f o rma n c e 	 as 	 cha i rma n 	 was 	 r e vi e w e d 	 i n 	 f e b rua ry	
2013 prior to his resignation in march 2013 and it was concluded that 
he managed meetings well and allowed full and open debate as friedrich 
joussen is relatively new to his role as nonexecutive chairman it is 
int ended 	 tha t 	 h is 	 first 	 r e view 	 will 	 be 	 under tak en 	 in 	 f ebruar y 	 2 0 1 4
accountability
the directors’ responsibilities statement can be found on page 102 
the business  financial review the audit committee report 
nomination committee report directors’ and remuneration report 
can be found on pages 54 to 63 73 to 77 78 and 79 to 98 respectively
legal and regulatory compliance 
a 	 t wic e y early 	 legal 	  	 r egula t or y 	 c omplianc e 	 self c er tificati on 	 pr oc ess	
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 
health  safety 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 the progress of 
businesses in these vital areas 
87 of employees across the group have undergone riskfocused 
tra v elindustr y 	 specific 	 tra in in g 	 on 	 their 	 r esponsibilities 	 under	
antibribery legislation updated abc business gifts  hospitality and 
investigation policies have been communicated a compliance intranet 
page has been created to give greater online visibility of our initiatives 
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relations with shareholders 
the 	 ch ief 	 e x ecutiv e  	 ch ief 	 financial 	 of fic er 	 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 
pr eliminar y 	 r esult s 	 deta ils 	 o f 	 wh ich 	 t o g ether 	 with 	 the 	 gr oup ’ 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
as a result of the extensive investor feedback provided by the  
ch ief 	 e x ecutiv e  	 the 	 ch ief 	 financial 	 of fic er  	 and 	 those 	 none x ecutiv e	
directors who did meet with shareholders the remaining non
executive 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 
c onfirmed 	 the y 	 w o uld 	 be 	 happ y 	 t o 	 mak e 	 themselv es 	 a vailable 	 if 	 an y	
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
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
•	 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
•	 pr o x y 	 c o unt s 	 ar e 	 display ed 	 a t 	 the 	 close 	 o f 	 the 	 a g m 	 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
corporate governance report 
continued
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audit c ommittee
t he audit c ommittee comprised four independent n onexecutive 
d irectors – minnow powell sir michael h odgkinson janis kong and 
c oline mcc onville – throughout the year ended 30 september 2013  
of whom at least one had recent and relevant financial experience in 
compliance with the c ode provision c 31 
the chairman chief executive chief financial officer director of 
g roup audit services and the external auditor are invited to and 
routinely attend all meetings and other n onexecutive d irectors  
may also attend
meetings
t he audit c ommittee met 10 times during the year – two of these 
meetings were specifically called to review and approve draft 
announcements results and trading statements of the c ompany  
t he c hairman of the audit c ommittee reported to the board on  
how the c ommittee had discharged its responsibilities
a s c hairman of the audit c ommittee it is my responsibility to ensure 
that the c ommittee 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 g roup 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 g roup’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
t he audit c ommittee 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 d uring the year we have continued to focus on improving 
key financial controls processes and procedures across the organisation 
and i am pleased with another year of 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 
g roup which will remain a key point of focus for the c ommittee 
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 also reviewed our t erms of 
r eference during the year including comparing them against the  
c ode and these were approved by the board t hese are available  
on wwwtuitravelplccominvestorsmedia 
d uring the year we invited a number of members of management  
to present to the c ommittee on key areas of risk and control 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 c ommittee’s time was used most effectively we 
together and individually visited various parts of the business and met 
informally with a number of members of management below board 
level to gain a deeper insight into areas relevant to the role of the 
c ommittee
t he activities of the c ommittee members during the last year  
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 
c ommittee’s performance
d uring the year activities of the c ommittee included the following
the integrity of financial reporting 
we reviewed the integrity of the financial statements of the company 
and all formal announcements relating to the company’s financial 
performance 
in last year’s annual report we reported on judgements relating to 
r evenue r ecognition and aircraft maintenance provisions along with 
our annual review of g oing c oncern impairment provision for c laims 
sdi s and t ax t he key areas reviewed in the current year are set out 
below in each case we reviewed and discussed detailed papers 
received from management and took account of the views of the 
external auditors
aircraft
2013 was a busy year for aircraft transactions with the following events 
occurring 
• 737 ma x order signed with boeing and approved by shareholders 
and
• delivery of boeing 787 aircraft commenced and finalisation of 
related credits in respect of entry into service costs for this new 
type of aircraft
minnow powell 
c hairman
a udit c ommittee
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t he f rench tour operating business has suffered an impairment of 
£59m this year due to the continued downturn in the f rench economy 
and the difficult trading environment caused by the ongoing political 
unrest and violence in what has traditionally been the popular n orth 
african destinations for the f rench market in the absence of any 
perceived recovery in these north african destinations particularly 
egypt in the nearterm management proposed an impairment of 
£59m of the goodwill attached to the f rench tour operator and we 
agreed with this judgement
we also reviewed and approved the sensitivities used by management 
which were consistent with 2012 and ‘a reasonably possible’ change to 
model inputs including the related disclosure as required by ia s 36
provision for claims
we examined the risks relating to the main legal cases facing the g roup 
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 
separately disclosed items sdis
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 sdi s each quarter 
to validate that it was appropriate for such items to be reported this 
way and agreed with their judgement
tax
we reviewed the judgements together with any related provisions in 
respect of open areas together with assessments from independent 
experts in respect of g erman t rade t ax we considered the disclosure 
as a contingency to be appropriate at this time t he risks relating to 
the spanish tax case note 8 and the decision to settle rather than 
litigate were taken by the board as a whole
communication of accounting policies
d uring the year we noted the continued development of our 
internal accounting policy manual including the review and reissue 
of 15 accounting policies together with the related guidance 
the effectiveness of internal controls and the 
risk management framework
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 
t he c oso framework of internal control continues to be implemented 
across the organisation w hile this has focused primarily on f inancial 
reporting with the review and documentation of the key financial 
processes risks and controls we have noted more focus now starting 
to be applied to nonfinancial operations in those parts of the 
organisation where the risk and control environment is more mature 
in respect of the shareholder circular we considered the profit 
forecast and working capital statement including the related reports 
from pwc  before they were presented to the board in respect of  
the boeing 787 aircraft we reviewed the accounting treatment of 
entry into service c osts and associated credits to ensure the most 
appropriate accounting treatment and we were satisfied with the 
judgements made
denied boarding compensation dbc
a s a result of a ruling by the european c ourt 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 
we reviewed the methodology for provisioning in relation to d bc 
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 
going concern
we assessed our available facilities facility headroom our banking 
covenants and the sensitivity analyses on these items
we challenged management’s forecasts including sensitivities to 
downturns in budgeted trading r educed 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 
2013 was also taken into account
we were satisfied that the going concern basis of preparation 
continues to be appropriate in the context of the g roup’s funding  
and liquidity position
annual goodwill impairment review
during the year we also considered the judgements made in relation  
to the valuation methodology adopted by management and the model 
inputs used which include the approved threeyear business plan 
longterm growth rates and weighted average cost of capital
t he annual impairment review has resulted in an impairment charge  
of £178m which when added to the £10m charge taken earlier in the 
year as a consequence of the closure of two businesses results in a 
total impairment charge for the year of £188m
£109m of the impairment charge has arisen from businesses within  
the specialist  activity sector f ollowing the removal of the sector 
management team at the start of the financial year these businesses 
have been subjected to a thorough and detailed review with the 
consequence that the latest assessment of their future profitability  
is lower than anticipated in the prior year a s a consequence the 
discounted cash flow was insufficient to support the previous level  
of goodwill for certain of the specialist  activity sector businesses 
– consequently an impairment has been taken against these specific 
businesses full details can be found in note 10 of the financial 
statements
a udit c ommittee
continued
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group compliance 
we noted the continued development and strengthening of the 
g roup c ompliance functions during this year t he c ommittee 
receives presentations from the three g roup c ompliance functions 
four times a year
• g roup f inancial c ompliance c reated in 2011 to provide assurance 
that individual company balance sheets across the g roup are fairly 
stated 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 manage legal and regulatory risk across the g roup including 
antibribery  corruption abc and whistleblowing see page 71
 – we received feedback during the year on the progress being 
achieved in relation to existing legislation for instance anti
bribery  c orruption c ompetition l aw anti money l aundering 
and know your supplier as well as preparations for new 
legislation for instance the new eu data protection legislation 
due in 201415 
 – we also received updates on the development and roll out of  
the supplier code of conduct as well as risks identified by the 
sixmonthly l egal  r egulatory c ompliance checklist 
• g roup it c ompliance c reated in march 2012 to provide a 
compliance framework across the g roup’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 received reports on the progress being achieved in relation to 
the development of minimum it controls and plans for the next 
year we also reviewed the g roup’s compliance with pci d ss 
along with updates on the effectiveness of business c ontinuity 
planning bcp and disaster recovery dr we noted the 
progress made during the year in relation to bc p and dr and 
deadlines set for completion during this coming year 
we noted that the three g roup c ompliance functions and the three 
functions that make up group audit services risk internal audit  
and fraud have worked closely to ensure the free flow of relevant 
information between them and a coordinated and consistent 
approach across the g roup through the g roup c ompliance steering 
c ommittee
we reviewed the talent pool of senior financial management during  
the year noting the continued rollout of competency testing in 
conjunction with korn ferry for key finance management and the  
role of the f inance academy to educate and train our employees
we have seen continued improvement in the transparency and active 
ownership of risk 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 w hilst we are pleased with the 
progress achieved there remains much still to do and work in these 
areas will be ongoing in 2014 
first line of defence
management 
we spent 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 w ith good progress 
achieved in strengthening the financial controls across the organisation 
over the last two years we are now able to broaden our review and are 
inviting the managing directors of sectorsource markets to join their 
f inance d irectors in attending the c ommittee in order to encourage 
wider debate and accountability 
we continued to receive reports from group accounting eg new 
accounting developments and controls over prepayments and g roup 
treasury including group treasury policy and counterparty risks  
we reviewed and approved the g roup’s overall taxation strategy 
during the year t his covered the key factors for the g roup’s overall  
tax position and forecasts for the future tax charge and cash taxes
during the year we received presentations relating to major projects  
as well as receiving presentations on the control environment existing 
within all key business areas 
local compliance functions
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 management
we reviewed the work that the g roup r isk management function  
has undertaken to enhance the effectiveness of risk management 
processes throughout the organisation we noted the impact of a 
welldefined risk methodology effective risk software and improved 
infrastructure in supporting this improvement in addition to reports 
received from the internal audit function on the adequacy and 
effectiveness of risk management in various business areas we 
reviewed the g roup r isk function’s own assessment of stakeholder 
engagement and effectiveness by key business area t his assessment 
is shared openly with management and the board and is used as a 
focus for ongoing improvement in addition we have received regular 
updates on the work of the g roup r isk management c ommittee 
during the last year and noted the quality of the risk discussions that 
have taken place during the year 
while significant improvements have been made in the year further 
work to embed them into all our processes and procedures is planned 
for 2014 
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the integrity of the group’s relationship  
with external audit and the effectiveness  
of the external audit process
effectiveness of external audit
a gain this year we requested a review of the effectiveness of external 
audit as perceived by 12 senior financial personnel and senior 
management closely involved in the yearend reporting process as well 
as members of the audit c ommittee t he approach was consistent 
with last year involving 25 questions covering 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 we noted a general improvement in the 
scores compared to the previous year and the perception that overall 
the 2012 audit process had worked well 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 2014 in addition 
we also noted the results of the audit quality review team part of 
the f inancial r eporting c ouncil assessment of the effectiveness of 
pwc relative to its peers as well as pwc ’s own transparency report 
d etails of fees payable to the auditors and its associates are given in 
n ote 7 f urther information in respect of nonaudit services is given 
on the next page 
audit plan and approach
d uring the year we reviewed pwc ’s benchmarking of our organisation’s 
audit risk profile relative to the ftse 350 and the audit strategy 
developed as a result we noted the riskbased audit approach  
key areas of audit focus and the audit plan produced as a result  
t he 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 in addition 
we noted and agreed with pwc ’s emphasis on substantive as opposed 
to controls testing
t he c ommittee holds a private session with the l ead partner from our 
external auditor without management present once a year immediately 
prior to the publication of the year end accounts in addition i meet 
with the l ead 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
reappointment of external 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 completed their third audit we will 
continue to review the performance of pwc formally on an annual 
basis and although not required by the u k c orporate g overnance 
c ode to undertake a formal tender process until 2020 will continue 
during this remaining sevenyear period to keep this under close 
review in the best interests of our shareholders
third line of defence
internal audit
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 d irector of the internal  
audit function in f y2012 in particular following the successful 
implementation of key infrastructure methodology systems risk 
assessed auditable universe we have noted a closer focus on 
restructuring assessing and developing the internal audit team as  
an essential element in building a highperformance internal audit 
function 
we also noted the close and constructive working relationship that  
has developed between internal audit and the key control functions  
of g roup c ompliance and external audit which is producing a more 
efficient and integrated approach to the provision of risk and controls 
assurance
t he c ommittee holds a private session with the d irector of g roup 
audit services without management present once a year i also meet 
with the d irector of g roup audit services informally before each 
c ommittee meeting without management present in order to provide 
the opportunity for open and timely dialogue t ypically we discuss the 
quality and content of papers due for discussion with the c ommittee 
emerging business risks and the quality of management engagement 
with internal audit and any areas of concern therein
the effectiveness of internal audit
a gain this year we requested a review on the effectiveness of internal 
audit t he approach was consistent with last year covering the 
effectiveness of the function positioning processes systems and 
people assessed both from an internal perspective functional setup 
benchmarked against best practice file review interviews of internal 
audit staff and from an external perspective the perception of  
12 senior financial personnel and senior management and six board 
members responding to 12 questions we noted a marked shift in 
effectiveness from both an internal and external perspective as the 
impact of the improvement plan has begun to work its way through 
into daytoday operations 
in addition i selected a judgemental sample of 16 internal audit 
reports in order to validate that the control assessments made 
by the internal audit function were appropriate and in line with our 
guidelines i reviewed these with the d irector of internal audit and 
invited the chief financial officer to do the same and we were satisfied 
that the control assessments were appropriate in each case 
the arrangements by which staff may raise 
concerns regarding potential impropriety in 
confidence and that these concerns will be 
investigated appropriately
we received updates during the year on the arrangements by which 
the business encourages feedback from management and employees 
on instances of potential impropriety t his included presentations from 
g roup l egal on the development of the whistleblowing hotlines across 
the group including number of calls issues and benchmarking against 
other named companies from g roup f inance on the development 
of hot principles honesty openness and transparency and the 
communication thereof via the f inance academy and from g roup hr  
an analysis of responses by businesslevel of seniority to three key 
questions in the your voice employee feedback survey relating to 
potentially unethical andor dishonest behaviour 
a udit c ommittee
continued
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nonaudit services – significant expenditure authorised
business 
a rea
w ork 
undertaken
r ationale for use of  
the external auditor
 
£000s
g roup boeing transaction 
d etailed analysis of the 
forecast trading results 
cash and working capital 
requirements for the 
g roup from 1 march  
2013 to 30 september 
2014 in support of the 
circular presented to 
shareholders as part  
of a significant class 1 
transaction
d etailed knowledge 
and understanding 
of the business
850
g ermany coso – operations 
f ollowing on from the 
first stage of the coso 
project ie the financial 
r eporting c ategory  
to assist the g erman 
business in developing 
the next stage of  
the project ie the 
operations c ategory
won on competitive 
tender on the basis of 
their detailed knowledge 
and understanding of  
the business pwc will 
support ernst  young 
ey in scoping the work 
and collecting basic 
information relating to 
risk and controls with  
ey responsible for 
ensuring independent 
review of the results  
and implementation  
of the project
420
g roup functional baseline 
assessment  
a ssist in gathering  
data and identifying 
opportunities to reduce 
costs and improve 
performance across 
f inance hr and it in 
mainstream and ad  
d etailed knowledge and 
understanding of the 
business its operational 
base and stakeholders 
the requirements of  
the exercise having 
completed a similar 
exercise in 2007 and  
the travel market
270
minnow powell
c hairman
9 d ecember 2013
nonaudit services
t he audit c ommittee has developed the c ompany’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 c ompany’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 c hairman 
of the audit c ommittee and
• engagements at or above £250000 must be preapproved by the 
audit c ommittee
in total £2m was spent on nonaudit fees during the year being 28 
of audit and audit related fees in addition £1m was spent for services 
to comply with legislation f urther details of nonaudit services are set 
out in note 7 significant expenditure that was authorised in the year 
ie exceeding £250000 is outlined below
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talent management strategy
the september 2013 meeting focused on the current challenges we 
face to ensure that succession plans are in place for key roles the 
mobility of the workforce and providing global career opportunities 
for our people we confirmed our commitment to recognise and 
nurture talented individuals across the whole group whilst ensuring 
that suitable development programmes are in place for key managers
diversity
our diversity objectives were agreed in 2012 and these were considered 
again at the september 2013 meeting these objectives recognise 
the importance of gender and international diversity and set out our 
aim to achieve at least 25 female representation among the board’s 
membership by 2015 as at 30 september 2013 this percentage is 
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 
committee effectiveness survey
also in september 2013 the committee considered the results of the 
survey following a review of the comments made it was concluded 
that there should be a greater focus during the coming year on 
succession planning for nonexecutive directors 
the committee will continue to review the membership of the board 
and its committees during the coming year and as part of this process 
will also take into consideration the diversity of business skills and 
experience gained from different cultural and geographical backgrounds
sir michael hodgkinson
chairman  senior independent director
9 december 2013
“the committee’s main focus is on strengthening balancing and 
understanding the range of skills experience and diversity of the 
board its committees and key roles below board level”
composition of the committee
as at 30 september 2013 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 harold sher independent and friedrich joussen 
shareholder rainer feuerhake and dr michael frenzel both 
shareholder directors retired during the year on 8 february and 
25 march 2013 respectively and friedrich joussen was appointed  
as a committee member on 25 march 2013 to replace dr frenzel
key objectives
• 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
committee activities
during the year two new appointments were made to the board 
following the retirement of dr frenzel chairman and rainer 
feuerhake nonexecutive director friedrich joussen and sebastian 
ebel were appointed as tui ag’s shareholder directors in accordance 
with the terms of the relationship agreement
two meetings of the nomination committee took place – in march 
and september 2013 the meeting in march was to consider the 
appointment of sebastian ebel and in september the focus was on 
succession planning talent management across the group diversity 
and a review of the effectiveness survey
sir michael hodgkinson 
chairman
25 
target for female  
representation  
on the board  
by 2015
nomination committee
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i am pleased to introduce the d irectors’ r emuneration r eport for the 
year ended 30 september 2013 
l ast year’s d irectors’ r emuneration r eport anticipated many of the 
new remuneration reporting requirements which were in draft form 
at that time we received positive feedback from shareholders on the 
revised format and approach this year we are one of the first companies 
to publish a report in the format required under the l arge and 
mediumsized c ompanies and g roups accounts and r eports 
amendment r egulations 2013 that came into force on 1 october 2013 
we hope that you find our report comprehensive clear and informative 
the implementation of new legislation coupled with a review of 
executive remuneration has led to this being a particularly busy year 
for the r emuneration c ommittee the c ommittee
executive director remuneration review
a s a c ommittee we believe it is essential that the d irectors’ 
r emuneration policy the policy is aligned with the c ompany’s strategic 
framework the interests of shareholders and the external competitive 
market we also recognise the current focus on executive pay and are 
mindful of investor expectations and best practice guidelines
with this in mind during 2013 the committee undertook a review 
of the policy and engaged in consultation with our key shareholders 
i would like to take this opportunity to thank them for the helpful and 
constructive feedback which they provided following this process we 
are proposing a number of changes to our remuneration framework
in summary these changes are intended to
• simplify our remuneration structure
• provide greater transparency for shareholders
• reduce the overall quantum of longterm remuneration by the 
removal of the matching shares element of our deferred bonus 
arrangements
• introduce malus provisions on unvested deferred bonus and 
longterm incentive awards and
• create greater alignment with investors by increasing our 
shareholding guidelines for executive d irectors
u nder the existing d eferred annual bonus scheme da bs executive 
d irectors may be given a matching share award of up to four times 
the deferred bonus amount t he last grant of matching share awards 
will be made in d ecember 2013 for performance in the year ended 
30 september 2013 t he change will simplify our incentive framework 
and provide greater transparency we are also responding to feedback 
from some of our shareholders who have expressed concerns with 
matching share arrangements more generally
maximum annual bonus opportunities will remain the same and 
the performance measures which the committee consider are 
appropriately stretching are unchanged executive directors will still 
be required to defer 25 of any bonus awarded with the option of 
deferring a further 25 if they wish to do so
t he removal of the matching share element will result in a reduction  
in overall incentive opportunity in line with our aim of linking a 
substantial proportion of the total remuneration package to longterm 
performance measures the committee proposes to increase the 
maximum performance share plan psp award limit to 400 
however it is envisaged that awards will generally be made of up to 300
we consider that the current stretching psp performance measures 
continue to be aligned with our business strategy and are appropriate 
for the business at this time therefore we are not proposing any 
changes to the performance measure framework
malus provisions
we have decided that it is an appropriate time to seek shareholder 
approval for the renewal and update of the c ompany’s two shareholder
approved executive share plans – the psp and da bs – at the annual 
g eneral meeting agm  to be held on 6 f ebruary 2014 t he current 
rules expire in july 2017 t he renewed versions will operate in the same 
way as the existing plans and also reflect the changes outlined above 
r evising the rules now gives us the opportunity to ensure that they are 
completely in line with the policy and reflect current market practice 
including the introduction of malus provisions t he malus provisions 
will allow us to reduce or cancel unvested psp and da bs awards in  
a number of specific circumstances when it is in the interests of 
shareholders to do so 
c oline mcc onville 
c hairman
r emuneration report
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continued
the directors’ remuneration report for the financial year ended 
30 september 2013 has been prepared on behalf of the board by 
the c ommittee
t he report has been compiled taking into account the l isting r ules 
of the financial conduct authority the relevant sections of the 
c ompanies act 2006 and the l arge and mediumsized c ompanies 
and g roups accounts and r eports amendment r egulations 2013 
t he c ommittee adopts the principles of good governance as set out 
in the u k c orporate g overnance c ode 
t his report will be subject to two votes at the agm on 6 f ebruary 2014 
– a binding vote in relation to the d irectors’ r emuneration policy and 
an advisory vote in relation to the statement by the r emuneration 
c ommittee c hairman and the annual r eport on r emuneration 
in addition there will be two separate votes to approve the renewed 
and updated versions of the c ompany’s two executive share plans
as part of the remuneration review outlined previously the committee 
has reaffirmed the aims of the policy as follows 
• to set the total remuneration package at a level that reflects 
the competitive markets in which the g roup operates
• to align the executive d irectors’ interests with those of shareholders 
over the longterm by building a significant shareholding in our 
business 
• 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 ‘atrisk’ reward
• to provide a package that is simple and transparent to shareholders 
•  to enable recruitment retention and stability and 
• to reinforce a highperformance culture throughout the g roup
the policy components are summarised below
fixe d re muneration
all employee s hare plans
per for mance relate d 
re muneration
base salary
bene fits
pension  
contri bution
shortter m 
annual 
perf ormance 
bonu s
l ongter m 
perf ormance 
share plan 
s hareholding guidelines
we are committed to ensuring alignment between our executive d irectors 
and the longterm interests of our shareholders within this context 
the shareholding guidelines for the executive d irectors have been 
increased as follows
shareholding requirement as percentage of salary
before 1 october 2014 f rom 1 october 2014
peter l ong 200 400
johan l undgren 150 200
w illiam w aggott 150 200
d r volker böttcher 150 200
s alary review
executive d irectors will not receive a salary increase for the year 
commencing 1 october 2013 t he ce o has not received a salary 
increase since 2008
bonus awards and longterm share plan vesting
as you will have seen previously we have had a very successful year 
as stated earlier the committee closely aligns remuneration decisions 
to the delivery of our strategic plans and the achievement of stretching 
financial results as detailed later the company’s strong profit and 
cash performance is reflected in the executive directors’ bonus 
awards in addition achievement of the company’s eps and tsr 
targets together with significant share price growth over the last  
year have resulted in the achievement of longterm incentive goals
on behalf of the c ommittee i thank you for your support and trust 
that you find the newstyle report informative
c oline mcc onville
r emuneration c ommittee c hairman
9 d ecember 2013
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directors’ r emuneration policy
t his section sets out the policy which will be put forward for shareholder approval at the agm on 6 f ebruary 2014 in accordance with section 
439a of the companies act 2006 the policy will apply to any remuneration and loss of office payments made on or after 1 october 2014
executive directors’ future policy t able
element base salary
purpose and link to strategy set at levels to attract and retain executive d irectors 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 g roup 
paid monthly in cash
salaries are generally reviewed annually in october although an outofcycle review may be conducted  
if the c ommittee 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 g roup
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 d irector
salary levels for the year ending 30 september 2014 are detailed in the a nnual r eport on r emuneration for the  
year ended 30 september 2013
performance measures individual and business performance are considerations in deciding salary levels
element retirement benefits 
purpose and link to strategy t o attract and retain executive d irectors of the right calibre
to provide a market competitive retirement benefit
t o reassure executive d irectors 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 
h e 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 g roup
maximum opportunity t he maximum c ompany contribution to an executive d irector’s pension or equivalent cash allowance may not  
exceed 50 of base salary
performance measures n ot performance related
element other benefits
purpose and link to strategy t o ensure broad competitiveness with market practice
t o 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 g roup
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 hmrc
approved 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 d irector 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 n ot performance related
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element a nnual performance bonus and deferred a nnual bonus s cheme
purpose and link to strategy to encourage and reward the attainment of challenging financial and strategic performance targets during an 
annual period
t he performance measures closely align to the strategy of the business as outlined on pages 14 to 25 and shareholder 
value creation as summarised in the investment case on page 4
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 da bs 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 
a s outlined in the n otes to this t able the last awards of matching shares under da bs will be made in d ecember 2013 
the awards will relate 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
d ividend 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 n ilcost options may normally be exercised until the tenth 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 c ommittee
for bonuses awarded in respect of the year commencing 1 october 2014 and subsequently malus provisions will 
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 c ompany andor
• personal misconduct
t he c ommittee may adjust and amend the terms of the awards in accordance with the plan rules
maximum opportunity t he maximum bonus opportunity as a percentage of salary is up to 175 for the ce o and up to 140 for the 
other executive d irectors 
t he last award of da bs matching shares will be made in d ecember 2013 t he award will relate to performance in  
the year ended 30 september 2013 t he maximum multiple awarded will be a ratio of four matching shares to one 
deferred share 
performance measures a nnual bonus
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 
• f inancial 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 
g roup’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 
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element performance s hare plan psp 
purpose and link to strategy t o incentivise longterm value creation through the setting of stretching targets that ensure a strong link between 
reward underlying group financial performance and shareholder returns
t o 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
d ividend 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 n ilcost options may normally be exercised until the tenth 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 c ommittee
for awards made in respect of the year commencing 1 october 2014 malus provisions will 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 c ompany andor
• personal misconduct
t he c ommittee 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 t he c ommittee 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 
c ommittee 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
• r elative t sr – 25
• r oic – 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 
f ailure 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 c ommittee 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 executive directors’ future policy t able
l egacy matters
t he c ommittee reserves the right to make remuneration payments 
and payments for loss of office including the exercise of any discretions 
available to the c ommittee 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 d irector of the c ompany and the payment was not in consideration 
for the individual becoming a d irector of the c ompany 
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 t he 
share awards under the psp and da bs held by the executive d irectors 
which were granted or which are anticipated to be prior to the policy 
coming into effect are set out in the annual r eport on r emuneration
matching shares
t he last award of da bs matching shares will be made in d ecember 2013 
t he award will relate to performance in the year ended 30 september 
2013 t he maximum multiple awarded will be a ratio of four matching 
shares to one deferred share t hese and other previous da bs awards 
that are currently outstanding will therefore vest in subsequent years
matching awards are subject to performance measured over a threeyear 
period t he framework used for assessing performance is the same as 
that for psp awards if events happen that cause the c ommittee to 
determine that any target is no longer a fair measure of the c ompany’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
t he c ommittee 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
t he c ompany 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 d irectors t argets are 
set taking into account a number of factors including reference to 
typical market practice t hey are set at a level which the c ommittee 
considers represents stretching performance
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d eferred bonus awards not subject to performance measures
n o further performance measures apply to deferred share awards 
granted under the da bs as these represent the deferral of annual 
bonus amounts that have already been earned
psp and da bs rules
the company’s existing psp and dabs rules approved by 
shareholders on 25 july 2007 can continue to be operated until 
25 july 2017 however subject to shareholder approval at the agm on 
6 february 2014 all future awards granted to executive directors will 
only be made under the renewed and updated versions of these rules
n onexecutive directors’ future policy t able
the board aims to recruit highcalibre nonexecutive directors 
with broad commercial international or other relevant experience 
t he remuneration policy for nonexecutive d irectors with the 
exception of the c hairman 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 a ssociation t he policy for the 
c hairman is determined by the c ommittee of which the c hairman 
is not a member when recruiting nonexecutive directors the 
remuneration arrangements offered will generally be in line with 
those set out in the n onexecutive d irectors’ f uture policy t able
a pproach to setting fees basis of fees o ther items
f ees are set at an appropriate level to attract 
and retain highcalibre n onexecutive d irectors 
f ees 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 n onexecutive d irector is paid a basic 
fee for undertaking n onexecutive d irector 
and board duties a higher fee is typically 
paid to the c hairman of the board and the 
d eputy c hairman 
a dditional fees may also be paid for taking 
on c ommittee responsibilities and other 
board duties 
t he maximum aggregate fees for all n on
executive d irectors allowed by the c ompany’s 
a rticles of a ssociation is £15m 
n onexecutive d irectors’ fees are not subject  
to clawback or withholding arrangements
t he n onexecutive d irectors do not participate 
in the annual bonus or longterm incentive plans 
and do not receive any pension benefits 
t he g roup provides each n onexecutive 
d irector with relevant liability insurance  
for the duration of their appointment 
n onexecutive d irectors receive holiday 
concessions t he 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 
r emuneration arrangements across the g roup
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 g roup 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 d irectors
• psp – a small number of seni or executives who provide significant 
strategic input may be invited to participate in the psp in any year
• all employee share plans – an hmrc approved share incentive plan 
is open to all u k eligible employees including executive d irectors 
on the same terms giving them the opportunity to become 
shareholders in the c ompany participation in a global plan may be 
offered in the future currently over 3200 employees participate  
in the share incentive plan and hold over 56 million shares 
approach to the recruitment and retention of 
executive directors
we have a strong track record of succession planning and growing  
and promoting talent internally 
principles
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 
f ollowing any executive d irector recruitment the c ommittee will include 
the rationale for the arrangements offered in the next r emuneration 
r eport
c omponents and approach
t he package offered to a new executive d irector will typically include 
those elements listed within the executive d irectors’ f uture 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
where expatriate appointments are made the committee may consider 
providing additional benefits where considered appropriate and in the 
c ompany’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
buyouts
t he c ommittee may make awards on hiring an external candidate  
to ‘buyout’ forfeited remuneration arrangements in doing so the 
c ommittee 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 g enerally it is the c ommittee’s intention that the 
buyout of awards will be made on a comparable basis to those 
forfeited and will be sharebased
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in determining whether it is appropriate to offer a buyout the 
c ommittee will ensure that any awards are made in the best interests 
of both the c ompany and its shareholders and will give due regard  
to all relevant factors
maximum level of variable pay
t he maximum level of variable pay which may be awarded to new 
executive d irectors is limited to 575 of salary t his 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 c ommittee to have discretion to make 
additional oneoff cash or sharebased awards to executive d irectors 
in order for the c ommittee to be able to respond in exceptional and 
unexpected circumstances t he c ompany will make full disclosure  
of any such awards made including the rationale in the company’s 
annual report and accounts for the relevant financial year 
illustrations of the application of the executive directors’ 
r emuneration policy
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 d irectors 
t he charts show hypothetical values of the remuneration package for 
executive directors 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 
t sr and r oic elements and 
• maximum performance assuming 100 payout under both the 
annual bonus and the psp
t he charts presented are in line with our remuneration policy effective 
from 1 october 2014 matching share awards under da bs are 
excluded as these will not be granted in respect of years commencing 
1 october 2013 and subsequently 
t hese charts are for illustrative purposes only and actual outcomes 
may differ from those shown
£0
£1000
£2000
£3000
£4000
£5000
£6000
minimum performance
£1301
performance in line
with expectations
£2364
maximum performance
£5339
£000s
fixed pay annual bonus lti
100 55
31
14
24
48
28
£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
£0
£500
£1000
£1500
£2000
£2500
£3000
£3500
minimum performance
£753
100 56
29
15
24
24
52
performance in line
with expectations
£1344
maximum performance
£3173
£000s
fixed pay annual bonus lti
£0
£1000
£1500
£1500
£2000
minimum performance
£441
100 59
24
17
24
20
56
performance in line
with expectations
£744
maximum performance
£1802
£000s
fixed pay annual bonus lti
peter l ong
johan l undgren
dr volker böttcher
william waggott
notes
1  t hese illustrations of the application of the d irectors’ r emuneration policy show the 
potential reward opportunity for the executive d irectors from 1 october 2014 onwards 
assuming psp awards are made at the operational limit of 300 of salary
2  total remuneration for minimum performance fixed remuneration is comprised of salary 
standard benefit 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  total remuneration for performance in line with expectations is comprised of fixed 
remuneration annual bonus at 50 of maximum performance levels and longterm 
incentives at threshold performance levels
4  total remuneration for maximum performance is comprised of 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 
6  all employee share plans have been excluded as have any legacy awards which executive 
d irectors may hold
7  in calculating remuneration for dr volker böttcher who is paid in eur payments have 
been converted at 11902 to 1 gbp being the average exchange rate for the period 
1 october 2012 to 30 september 2013
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directors’ s ervice agreements 
in line with best corporate practice for listed companies the committee’s 
policy is for executive d irectors to have rolling contracts with a 12 month 
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 
t he 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 on remuneration payments or 
payments for loss of office
n otice period 12 months’ notice by the c ompany and six months’ 
notice by the executive d irector
expiry date rolling service contract no fixed expiry date
basic salary c ontractual entitlement to receive a basic salary 
and for a salary review to take place each year 
t he c ompany is not obliged to increase an 
executive d irector’s salary following a review 
pension  
contributions
pension contribution of up to 50 of basic  
salary for peter l ong and 33 of basic salary  
for w ill w aggott and johan l undgren
c ontractual  
benefits
contractual entitlement to
• private medical insurance
• permanent health insurance
• sick pay 
• life assurance 
• company carallowance and
• holiday travel benefits
a nnual bonus c ontractual entitlement to participate in the annual 
bonus scheme dependent on performance factors 
l ongterm 
incentive plans
c ontractual entitlement to be considered for 
participation in the psp and dabs subject to the 
c ompany’s policy in relation to such schemes and 
to the approval of the c ommittee 
r etirement date t here is no default retirement age r equests  
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 d irector 
to give notice is only six months
t ermination  
payments
t he d irector will be paid his salary and any other 
contractual benefits in respect of the relevant 
notice period if the d irector 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
t he service contract for any new executive d irectors 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 on 
remuneration payments or payments for loss of office contained in 
d r volker böttcher’s service contract are set out below d r böttcher’s 
service contract is governed by g erman law
n otice period 12 months’ notice by the c ompany and 12 months’ 
notice by the executive d irector 
expiry date rolling service contract no fixed expiry date 
f ixed retirement date
basic salary c ontractual entitlement to receive a basic salary 
and for a salary review to take place each year 
t he c ompany is not obliged to increase 
d r böttcher’s salary following a review 
pension  
contributions
pension contribution of up to 25 of basic salary
c ontractual  
benefits
contractual entitlement to
• accident insurance to cover death or invalidity
• sick pay 
• company carallowance and
• holiday travel benefits
a nnual bonus c ontractual entitlement to participate in the annual 
bonus scheme dependent on performance factors 
l ongterm 
incentive plans
c ontractual entitlement to be considered for 
participation in the psp and dabs subject to the 
c ompany’s policy in relation to such schemes and 
to the approval of the c ommittee 
r etirement date d r böttcher’s contract automatically expires at the 
end of the month in which he reaches the age of 63 
t ermination  
payments
if d r 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 t he normal 
award required under g erman case law is the 
average of the previous threeyears’ bonus awards
t he c ompany may also apply a noncompete 
clause in such circumstances under the g erman 
c ommercial c ode d r böttcher would be entitled 
to 50 of the annual remuneration he last received 
in his role including variable remuneration as 
compensation t his would be paid in 12 monthly 
instalments and would be subject to mitigation 
c ompliance with the g erman c ommercial c ode  
is a legal obligation
in a termination situation the c ommittee would 
strive to balance the interests of the c ompany 
with g erman legislative requirements
executive d irectors 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 c ompany any fees 
received excluding positions where the executive d irector is appointed 
as the c ompany’s representative are retained by the executive d irector 
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executive d irectors 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 u k executive d irectors and 
12 months by d r 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 pil on will be given and the 
executive d irector 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 pil on 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 d irector on garden leave for the 
duration of some or all of their notice period
in redundancy situations the c ommittee will comply with prevailing 
relevant legislation in addition and consistent with market practice 
the c ompany may pay a contribution towards the executive d irector’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
t here 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
t he 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 otice period t hree months’ notice by either party 
expiry date r olling appointment typically expected to last 
six years save for minnow powell janis kong 
and coline mcconville whose letters 
of appointment are subject to a threeyear 
fixed term 
fees and benefits entitled to receive fees together with such 
holiday concession arrangements as may 
from timetotime be made available to 
d irectors n onexecutive d irectors are covered 
by the c ompany’s directors’ indemnity 
insurance
pension contributions n one
annual bonus and long
term incentive plans
n ot eligible to participate in any annual bonus 
scheme or longterm incentive plan
t ermination payments n ot entitled to any compensation for loss 
of office
all executive d irector service contracts and n onexecutive d irector 
letters of appointment are available for inspection at the c ompany’s 
registered office during normal hours of business and will also be 
available at the c ompany’s agm on 6 f ebruary 2014 until the close 
of the meeting
policy on payment for loss of office 
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 ood’ leavers o ther leavers
a nnual performance bonus t he c ommittee considers it appropriate for 
the c ompany to have discretion regarding the 
payment of a full or partial bonus in termination 
scenarios 
w hen 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
u nless the c ommittee exercises its discretion 
to treat the executive director as a good leaver 
no bonus will be payable
psp and matching awards under the 
existing dabs
t he principles as described apply in respect  
of the current version of the psp and subject  
to shareholder approval the renewed version  
as well as the existing version of the da bs
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
t he c ommittee has discretion to accelerate vesting 
to the date employment ends 
t he c ommittee also has discretion to waive the 
time prorating requirement 
u nvested 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 c ommittee applies 
discretion to treat the executive d irector  
as a good leaver
deferred a nnual bonus s cheme dabs  
t he principles as described apply in respect  
of the current version of dabs and subject  
to shareholder approval the renewed version  
of this plan
u nvested 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 c ommittee
u nvested deferred share awards will lapse in full 
where the termination is on grounds of gross 
misconduct
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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 d irector to the success of the c ompany 
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 current 
psp and dabs as previously approved by shareholders and subject 
to approval at the agm on 6 february 2014 the rules of the renewed 
psp and dabs will apply a corporate event will include
• a takeover of the c ompany 
• a company or a person already having control making a general 
offer to acquire shares in the c ompany 
• a voluntary windingup and 
• under the rules of the new p lans 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 
d irectors 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 
t he c ompany 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 c ommittee determines it necessary or appropriate to do so 
appropriate disclosure of any such arrangement will be made
c onsideration of conditions elsewhere in the c ompany
t he c ommittee has oversight of the main compensation structures 
throughout the g roup and actively considers the relationship between 
general changes to employees’ remuneration and executive d irector 
reward w hen considering potential changes to executive d irector 
remuneration the c ommittee is provided with comparative employee 
information eg average salary reviews across the group
t he c ommittee does not consider it appropriate to consult directly 
with employees when formulating executive d irector reward policy 
however it does take into account information provided by the group 
hr d irector and feedback from our global employee satisfaction 
survey which includes questions about remuneration
c onsideration of shareholder views
t he c ommittee 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 
d uring the year we consulted with the c ompany’s largest shareholders 
and the main shareholder representative bodies t heir views have  
been instrumental in shaping the changes to the remuneration policy 
described elsewhere in this report 
in particular and as outlined in the letter from the remuneration 
committee chairman the committee noted ongoing shareholder 
concern regarding the continued use of deferred bonus matching 
awards a s a result these will no longer be awarded in respect of 
bonuses achieved for the year commencing 1 october 2013 and 
subsequently 
t he c ommittee has also taken account of market practice and general 
investor views in recommending increased shareholding requirements 
and an update to the rules of the psp and da bs that will include the 
introduction of malus provisions
t he c ommittee 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 
t he c ommittee may make minor changes to the policy that do not 
have a material advantage to executive d irectors without seeking 
shareholder approval
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t he annual r eport on r emuneration for the year ended 30 s eptember 2013
the following section sets out the directors’ remuneration for the financial year ended 30 september 2013 the following information has been 
audited by pricewaterhousecoopers llp
• single total figure of remuneration
• retirement benefits
• scheme interests awarded between 1 october 2012 and 30 september 2013
• payments to past d irectors
• loss of office payments and
• d irectors’ shareholdings
single total figure of remuneration 
executive directors
ye 
30 s ep 
2013
ye 
30 sep 
2012
ye 
30 s ep 
2013
ye 
30 sep 
2012
ye 
30 s ep 
2013
ye 
30 sep  
2012 
ye 
30 s ep 
2013
ye 
30 sep 
2012
ye 
30 s ep 
2013
ye 
30 sep 
2012
ye 
30 s ep 
2013
ye 
30 sep 
2012
ye 
30 s ep  
2013
ye 
30 sep  
2012
executive 
d irectors
s alary
£000
salary
£000
benefits 
excluding 
retirement 
benefits
£000
benefits 
excluding 
retirement 
benefits
£000
a nnual 
bonus 
cash  
deferred
£000
a nnual 
bonus 
cash  
deferred
£000
dabs 
matching 
awards
£000
da bs 
matching 
awards
£000
 psp 
£000
 psp 
£000
r etirement 
benefits
£000
r etirement 
benefits
£000
t otal 
remuneration 
£000
t otal 
remuneration 
£000
peter 
l ong 850 850 26 24 1369 1458 4742 2755 2710 1225 425 425 10122 6737
johan 
l undgren 700 695 71 88 902 970 2314 1113 964 436 231 229 5182 3531
w illiam 
w aggott 550 540 19 18 739 762 1798 929 937 310 182 178 4225 2737
d r volker 
böttcher 458 453 22 18 392 511 1775 849 740 283 114 113 3501 2227
t otal 2558 2538 138 148 3402 3701 10629 5646 5351 2254 952 945 23030 15232
n otes
1  a s stated in the 2012 a nnual r eport and a ccounts johan l undgren and w illiam w aggott were awarded salary increases on 20 october 2011 and 2 d ecember 2011 respectively t he year 
ended 30 september 2012 columns therefore include both prereview and postreview data
2 to comply with the new legislation benefits for the year ended 30 september 2013 include where used holiday travel concessions
3  annual bonus figures include a cash element of up to 50 and a deferred element of the remainder the deferred element is used to allocate nilcost options over tui travel plc shares 
which are deferred for at least three years t he deferred element is not subject to performance conditions
4  a s required by the new legislation the anticipated value of the da bs and psp shares that will vest for the threeyear period ended 30 september 2013 has been calculated using a share 
price of 365p this being the threemonth average for the year ended 30 september 2013 the dabs and psp values on pages 94 and 95 of this report are based on the 30 september 2013 
share price of 3677p as required by the l isting r ules of the f inancial c onduct a uthority 
5  awards vest after the approval of the financial statements for the year ending 30 september and such awards relate to a performance period ending on the same date as those financial 
statements therefore the figures in the 2013 dabs and 2013 psp columns relate to awards that will vest in december 2013
6  in calculating remuneration for dr volker böttcher payments made in eur during the year ended 30 september 2013 have been converted at 11902 to 1 gbp being the average exchange 
rate for the period 1 october 2012 to 30 september 2013 payments made in eur during the year ended 30 september 2012 have been converted at 12035 to 1 gbp being the average 
exchange rate for the period 1 october 2011 to 30 september 2012
alignment of pay with performance
t he remuneration policy at tui t ravel places substantial emphasis on 
variable pay t he c ommittee considers that this is aligned with the best 
interests of shareholders and ensures that executive d irectors will only 
receive significant remuneration for exceptional performance
over the last three years the executive directors have delivered strong 
company performance driven by growth in profit and cash generation 
for example our eps as defined in the plan rules has increased by 
over 22 per annum since 2010 shareholders have seen this reflected 
in our share price which has increased by almost 60 over this period 
taking our market capitalisation from £22bn to £41bn we consider that 
the remuneration received for the year ended 30 september 2013 
recognises this performance for example for peter long see chart
• over 85 of his total remuneration was delivered in variable pay and
• of this variable amount at least 30 was directly due to the 
significant increase in our share price over the last three years
£0 £1000 £2000 £3000 £4000 £5000
psp £1010 £1700
dabs
matching
£2975 £1767
value of share vest in £000s
performance element share appreciation element
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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 and 
holiday travel concessions school fees £41000 and tax advice 
were also provided as part of the ongoing support relating to his 
relocation to the u k from sweden on 1 august 2009
• william waggott carcar allowance private healthcare cover and 
holiday travel concessions retirement benefits do not include his 
deferred pension entitlements under the f inal salary section of the 
tui pension scheme uk please refer to the retirement benefits 
section for further details
• d r volker böttcher provision of a fullyexpensed company car and 
holiday travel concessions
retirement benefits
t otal pension contributions or allowances accrued to the year ended 
30 september 2013 were £952000 payments totalling £1195000 
have been made as at the date of this report t hese payments 
include contributions for the year ended 30 september 2012 which 
were accrued but not paid at the date of the 2012 annual r eport 
and accounts
w illiam w aggott has deferred pension entitlements under the f inal 
salary section of the tui pension scheme u k h e 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 2013 are a pension 
of £6083745 per annum payable from age 60 the transfer value as 
at 30 september 2013 calculated on the current basis is £1402198 
t he transfer value as at 30 september 2012 calculated on the basis 
in force at that time was £1 503860 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 £5794043 per annum so there has been an increase in 
pension of £289702 over the year no contributions were made in 
the year ended 30 september 2013
annual bonus
the annual bonus is driven by the achievement of group business  
and individual targets which are weighted for each executive d irector 
for the year ended 30 september 2013 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 t hese are set by the c ommittee annually with reference 
to the company’s fiveyear strategic plan analyst profit forecasts and 
cashflow performance the targets are designed to be stretching drive 
improved results and align delivery with shareholders’ expectations 
the specific financial targets are considered by the committee to be 
commercially sensitive
t he individual business objectives were determined with consideration 
to the strategic goals set for each executive d irector by the board a s 
is the case for all senior management in the group objectives were set 
under the strategic drivers described on page 15 – content brands and 
distribution technology growth and scale and people performance 
against these objectives was reviewed by the c ommittee against 
quantifiable individual performance metrics
a s reported earlier the c ompany has had a very successful year and 
this is reflected in the level of bonus awards 
t he bonus weightings for the year ended 30 september are 
detailed below
bonus weightings
executive d irectors
g roup 
profitcash
g roup 
average 
h eadroom 
c ash
source 
market 
profitcash
mainstream 
profit
individual 
business 
objectives
peter l ong 65 15 – – 20
johan l undgren 65 15 – – 20
w illiam w aggott 65 15 – – 20
d r volker böttcher 10 – 55 10 25
based on these weightings the performance levels were
bonus results as  of maximum opportunity for each element
executive d irectors
g roup 
profitcash
g roup 
average 
h eadroom 
c ash
source 
market 
profitcash
mainstream 
profit
individual 
business 
objectives
peter l ong 100 100 – – 60
johan l undgren 100 100 – – 60
w illiam w aggott 100 100 – – 80
d r volker böttcher 100 – 64 100 65
the subsequent awards are
overall bonuses for year ended 30 september 2013
executive d irectors
max bonus as  
of salary
t otal bonus as 
 of max
t otal bonus as 
 of salary
t otal bonus 
£000
peter l ong 175 920 1610 1369 
johan l undgren 140 920 1288 902 
w illiam w aggott 140 960 1344 739 
d r volker böttcher 120 713 856 392 
u p to 50 of each executive d irector’s annual performance bonus will be 
deferred into shares for three years on 12 d ecember 2013 it is anticipated 
that a matching award will be made on the same date as follows
executive d irectors
estimated value of award 
£000 
peter l ong 2737
johan l undgren 1803
w illiam w aggott 1478
d r volker böttcher –
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l ongterm incentives
deferred annual bonus scheme dabs
t he da bs shares awarded on 6 d ecember 2010 will be released on 10 d ecember 2013 t he vesting of the matching shares is subject to achievement 
of the following performance conditions over the threeyear performance period and continued employment
measure t arget weighting achievement
a performance hurdle of r oic requiring r oic to be on average at least equal to wacc  t his condition was achieved
g rowth in the c ompany’s eps as 
defined in the plan rules in relation  
to the growth in u k r pi 
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
75 eps growth in excess of r pi for 
the threeyear performance 
period was 6935
t his performance measure was 
therefore achieved at 100
t he c ompany’s ranking of total 
shareholder return t sr  performance 
relative to the t sr performance of the 
companies in the ft se 100 ranked 
30th to 100th by market capitalisation
ranking
• below median results in nil achievement
• between median and upper quartile results in achievement 
between 15 and 100 on a straightline basis
• above upper quartile results in 100 achievement
25 t he c ompany’s achieved 
ranking was 16th out of 71
t his performance measure was 
therefore achieved at 100
t herefore the overall result is that a vesting level of 100 was achieved 
performance share plan psp
t he psp shares awarded on 6 d ecember 2010 will be released on 10 d ecember 2013 t he vesting of the shares will be subject to three 
performance conditions
measure t arget weighting achievement
a performance hurdle of r oic requiring r oic to be on average at least equal to wacc  t his condition was achieved
g rowth in the c ompany’s eps 
as defined in the plan rules in 
relation to the growth in u k r pi 
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
50 eps growth in excess of r pi for 
the threeyear performance 
period was 6935
t his performance measure was 
therefore achieved at 100
t he c ompany’s ranking of total 
shareholder return t sr  performance 
relative to the t sr performance of the 
companies in the ft se 100 ranked 
30th to 100th by market capitalisation 
ranking
• below median results in nil achievement
• between median and upper quartile results in achievement 
between 15 and 100 on a straightline basis
• above upper quartile results in 100 achievement
50 t he c ompany’s achieved 
ranking was 16th out of 71
t his performance measure was 
therefore achieved at 100
t herefore the overall result is that a vesting level of 100 was achieved 
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continued
single total figure of remuneration 
n onexecutive directors
ye  
30 s ep 2013
ye  
30 sep 2012
ye  
30 s ep 2013
ye  
30 sep 2012
n onexecutive d irectors
fees
£000
f ees
£000
t otal 
remuneration
£000
t otal 
remuneration
£000
f riedrich joussen 
c hairman 163 – 163 –
sir michael h odgkinson 
d eputy c hairman 200 200 200 200
h orst baier 55 55 55 55
t ony c ampbell 55 55 55 55
c lare c hapman – 3 – 3
bill d alton – 43 – 43
sebastian ebel 29 – 29 –
r ainer f euerhake 20 55 20 55
d r michael f renzel 
outgoing c hairman 145 300 145 300
janis kong 55 19 55 19
c oline mcc onville 65 58 65 58
minnow powell 70 70 70 70
d r erhard schipporeit 55 55 55 55
d r a lbert schunk 55 55 55 55
h arold sher 55 55 55 55
t otal 1022 1023 1022 1023
s cheme interests awarded between 1 o ctober 2012 and 
30 s eptember 2013
awards under the dabs and psp were made on 6 december 2012 
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 da bs matching 
shares were awarded at a ratio of four matching shares to one deferred 
share t he vesting of the da bs matching shares is subject to continued 
employment and the achievement of stretching performance conditions 
over a threeyear period to 30 september 2015
awards made under the da bs on 6 d ecember 2012 are summarised 
below 
da bs deferred award
executive d irectors d ate of award
n umber of  
nilcost share  
options awarded
f ace value  
of award 
£000
peter l ong 06dec12 256646 729 
johan l undgren 06dec12 170809 485 
w illiam w aggott 06dec12 134207 381 
d r volker böttcher 06dec12 87886 250 
da bs matching award
executive d irectors d ate of award
n umber of 
nilcost 
share 
options 
awarded
f ace value 
of award 
£000
t hreshold 
value of 
award 
£000
t hreshold 
value of 
award as  
 of max 
award
peter l ong 06dec12 1026584 2915 364 125
johan l undgren 06dec12 683236 1940 243 125
w illiam w aggott 06dec12 536828 1525 191 125
d r volker böttcher 06dec12 351544 998 125 125
n otes
1  da bs matching awards will not be granted in respect of deferral of bonuses awarded for 
the year commencing 1 october 2013 or subsequently as per the policy
2  da bs awards were allocated on 6 d ecember 2012 using the midmarket share price 
2840p of tui t ravel plc shares on the date immediately preceding the allocation date 
3  in calculating remuneration for dr volker böttcher share awards made on 6 december 2012 
have been converted at 12315 eur to 1 gbp being the financial times closing midrate 
on the date immediately preceding the allocation date
under the psp shares were awarded on 6 december 2012 which are also subject to continued employment and the achievement of stretching 
performance conditions over a threeyear period to 30 september 2015 the awards are summarised below 
psp
executive d irectors
d ate of  
award
n umber of  
nilcost share  
options awarded
f ace value  
of award 
£000
f ace value of  
award as   
of base salary
t hreshold value  
of award 
£000
t hreshold value  
of award as   
of max award
peter l ong 06dec12 598591 1700 200 213 125
johan l undgren 06dec12 295774 840 120 105 125
w illiam w aggott 06dec12 232394 660 120 83 125
n o psp award was made to d r volker böttcher 
n otes
1  psp awards were allocated on 6 d ecember 2012 using the midmarket share price 2840p of tui t ravel plc shares on the date immediately preceding the allocation date 
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performance measures
t he following performance measures apply to the da bs matching 
shares and psp shares awarded on 6 d ecember 2012 
• u p to half of the awards will vest based on growth in the c ompany’s 
reported eps as defined in the plan rules in excess of growth in 
the uk retail price index rpi as follows
average annual eps growth  
in excess of r pi growth
proportion of  
award that vests 
l ess than 4 0
between 4 and 13 inclusive between 10 and 100 on a 
straightline basis
g reater than 13 100
• u p to onequarter of awards will vest based on the g roup’s 
t sr performance relative to an average of the t sr performance 
of an index of 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 t he companies 
included in the index are
1 aer l ingus g roup 13  international c onsolidated airlines g roup
2 a ir berlin 14 kuoni r eisen h olding
3 a ir f ranceklm 15 n ational express g roup
4 c arnival 16 n orwegian a ir shuttle
5 c lub mediterranee 17 pierre  vacances
6 d eutsche l ufthansa 18 pricelinecom
7 easyjet 19 r oyal c aribbean c ruises
8 expedia 20 r yanair h oldings
9 f innair 21 stagecoach g roup
10 f irstg roup 22 t homas c ook g roup
11 f light c entre t ravel g roup 23 wotifcom h oldings
12 h ertz g lobal h oldings
t he vesting schedule for the portion of awards subject to t sr 
performance is as follows
tui t ravel plc ’s t sr performance proportion of award that vests 
below index 0
between index and index 8  
per annum 
between 15 and 100 on a 
straightline basis
exceeding index  8 per annum 100
• u p to onequarter of the awards will vest based on the c ompany’s 
r oic performance over the performance period
average annual r oic proportion of award that vests 
below 141 0
between 141 and 156 between 15 and 100 on a 
straightline basis
g reater than 156 100
a performance hurdle of r oic requiring r oic to be on average at 
least equal to wacc measured over three years is used to ensure that 
the longterm incentive awards pay out only when shareholder value is 
being created over the performance period if the r oic wacc 
performance hurdle is not met no shares will vest 
t he c ommittee assesses the eps and the r oic tests based on audited 
information independent calculations of t sr performance for 
outstanding awards are performed by d eloitte
s hare incentive plan
peter long johan lundgren and will waggott are participants in the 
hmrc approved tui t ravel plc share incentive plan d uring the year 
ended 30 september 2013
• peter l ong did not purchase any partnership shares and was not 
awarded any matching shares in the year
• johan l undgren purchased 403 partnership shares at a share price of 
372p and was awarded 100 matching shares at a share price of 372p
• w ill w aggott purchased 403 partnership shares at a share price of 
372p and 154 dividend shares at a share price of 304p and was 
awarded 101 matching shares at a share price of 372p
payments to past directors
t here have been no payments to former d irectors during the year
payments for loss of office
d uring the year there have been no payments made to d irectors for 
loss of office
statement of executive directors’ shareholding and share interests 
t he executive d irectors are subject to a shareholding obligation a s explained in the letter from the r emuneration c ommittee c hairman the 
requirement will increase on 1 october 2014 f rom this date peter l ong is expected to hold shares at least equal to 400 of his base salary 
t he remaining executive d irectors are expected to hold shares at least equal to 200 of base salary a s shown below the executive d irectors 
comply with the revised holding requirement
executive d irectors
shares held  
outright at  
30 september 2013
shares held outright at  
30 september 2013  
as a percentage of salary 
based on share price  
of 3677p as at 
30 september 2013  
and salary as at 
30 september 2013
outstanding scheme interests at 30 september 2013
t otal of all share  
interests and  
outstanding scheme 
interests at  
30 september 2013
outstanding  
unvested scheme 
interests subject to  
performance measures
outstanding  
unvested scheme 
interests not subject to 
performance measures
t otal shares  
subject to  
outstanding  
scheme interests
peter l ong 3025860 1309 6505148 1033005 7538153 10564013
johan l undgren 533467 280 3608892 549724 4158616 4692083
w illiam w aggott 556620 372 2752323 465608 3217931 3774551
d r volker böttcher 376726 303 2005498 379760 2385258 2761984
n otes
1 interests in shares held at 30 september 2013 include shares held by connected persons
2 a ll outstanding scheme interests take the form of rights to receive shares nilcost share options or conditional share awards
3 d etails of each scheme interest awarded under the da bs and psp held by each executive d irector are set out later in this r eport
4  in calculating shareholding as a percentage of salary for dr volker böttcher the salary has been converted at 11902 to 1 gbp being the average exchange rate for the period 1 october 2012 
to 30 september 2013
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continued
deferred annual bonus s cheme dabs 
awards made under the dabs and which remain outstanding at 30 september 2013 are outlined below 
executive 
d irectors
da bs 
shares
nilcost 
options 
held at 
1 october 
2012
da bs 
nilcost 
options 
awarded 
during the 
year ended 
30 
s eptember 
2013
award 
date
market 
price per 
share at 
award
da bs 
shares 
vested 
during the 
year ended 
30 
s eptember 
2013
market 
price per 
share at 
vesting
market 
value at 
vesting  
£
planned
a ctual 
vesting 
date
da bs 
shares 
released 
during the 
year ended 
30 
september 
2013
r elease 
date
da bs 
shares 
lapsed 
during the 
year ended 
30 
september 
2013
maximum 
dabs 
shares 
nilcost 
options held 
at 30 
s eptember 
2013
maximum 
value based 
on share 
price of 
3677p at 30 
s eptember 
2013
£
3
peter l ong 154592
14
021209 24330p 021209 154592 041212 – –
1048088
2
021209 24330p 786066 35050p 2755161 130513 786066 130513 262022 – –
324781
1
061210 22900p 101213 324781  1194220 
1299124
2
061210 22900p 101213 1299124  4776879 
451578
1
071211 16470p 071214 451578  1660452 
1806312
2
071211 16470p 071214 1806312  6641809 
256646
1
061212 28400p 061215 256646  943687 
1026584
2
061212 28400p 061215 1026584  3774749 
t otal 5084475 1283230 786066 2755161 940658 262022 5165025 18991796
johan 
l undgren 62459
14
021209 24330p 021209 62459 041212 – –
423452
2
021209 24330p 317589 35050p 1113149 130513 317589 130513 105863 – –
158515
1
061210 22900p 101213 158515  582860 
634060
2
061210 22900p 101213 634060  2331439 
220400
1
071211 16470p 071214 220400  810411 
881600
2
071211 16470p 071214 881600  3241643 
170809
1
 061212 28400p 061215 170809  628065 
683236
2
 061212 28400p 061215 683236  2512259 
t otal 2380486 854045 317589 1113149 380048 105863 2748620 10106677
w illiam 
w aggott 52137
14
021209 24330p 021209 52137 041212 – –
353472
2
021209 24330p 265104 35050p 929190 130513 265104 130513 88368 – –
123144
1
061210 22900p 101213 123144  452800 
492576
2
061210 22900p 101213 492576  1811202 
208257
1
071211 16470p 071214 208257  765761 
833028
2
071211 16470p 071214 833028  3063044 
134207
1
061212 28400p 061215 134207  493479 
536828
2
061212 28400p 061215 536828  1973917 
t otal 2062614 671035 265104 929190 317241 88368 2328040 8560203
d r volker 
böttcher 101819
1
021209 24330p 101819 27810p 283159 041212 101819 041212 – –
407276
2
021209 24330p 305457 27810p 849476 041212 305457 041212 101819 – –
121568
1
061210 22900p 101213 121568  447006 
486272
2
061210 22900p 101213 486272  1788022 
170306
1
071211 16470p 071214 170306  626215 
681224
2
071211 16470p 071214 681224  2504861 
87886
1
061212 28400p 061215 87886  323157 
351544
2
061212 28400p 061215 351544  1292627 
t otal 1968465 439430 407276 1132635 407276 101819 1898800 6981888
g rand t otal 11496040 3247740 1776035 5930135 2045223 558072 12140485 44640564
n otes
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 granted in 2010 are described in the single total figure of remuneration section matching awards granted in 2009 
were subject to the same performance measures and targets
 •   t he performance measures and targets applicable for matching awards granted in 2012 are described in the scheme interests awarded section matching awards granted in 2011 are 
subject to the same performance measures and targets
3  t he maximum value is based on the 30 september 2013 share price of 3677p t he anticipated value of the da bs shares that will vest for the threeyear period ended 30 september 2013 
see page 89 has been calculated using the threemonth average for the year ended 30 september 2013 ie 3650p 
 4  during the financial year ended 30 september 2010 the director and the company agreed to enter into a joint election pursuant to section 4311 of the income tax earnings and pensions 
act 2003 in respect of this award consequently the remuneration committee agreed to vest this award early and release sufficient shares to satisfy the tax liability arising from the joint 
election the remaining shares were held by the employee benefit trust on behalf of employees and were subject to clawback conditions they were released after the third anniversary 
of the award date in accordance with the scheme rules on 4 december 2012 on which date the market price of a share is as shown in the market price per share at vesting column and the 
aggregate value of the shares released to the executive d irector is as shown in the market value at vesting column 
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shareh older inf ormati on
performance s hare plan psp 
awards made under the performance share plan and which remain outstanding at 30 september 2013 are outlined below 
executive d irectors
psp shares
nilcost 
options held 
at 1 october 
2012
psp nilcost 
options 
awarded 
during the 
year ended 
30 s eptember 
2013 a ward date
market 
price per 
share at 
award
psp shares 
vested and 
released 
during the 
year ended 
30 s eptember 
2013
market 
price per 
share at 
vesting
market 
value at 
vesting 
£
planned
a ctual  
vesting  
and release 
date
psp shares 
lapsed 
during the 
year ended 
30 s eptember 
2013
maximum 
psp shares
nilcost 
options  
held at  
30 s eptember 
2013
maximum 
value based 
on share 
price of 
3677p at  
30 s eptember 
2013  
£
peter l ong 698725 021209 24330p 349362 35050p 1224514 130513 349363 – –
742358 061210 22900p 101213 742358 2729650
1032179 071211 16470p 071214 1032179 3795322
598591 061212 28400p 061215 598591 2201019
t otal 2473262 598591 349362 1224514 349363 2373128 8725991
johan l undgren 248664 021209 24330p 124332 35050p 435784 130513 124332 – –
264192 061210 22900p 101213 264192 971434
850030 071211 16470p 071214 850030 3125560
295774 061212 28400p 061215 295774 1087561
t otal 1362886 295774 124332 435784 124332 1409996 5184555
w illiam w aggott 176736 021209 24330p 88368 35050p 309730 130513 88368 – –
256769 061210 22900p 101213 256769 944140
400728 071211 16470p 071214 400728 1473477
232394 061212 28400p 061215 232394 854513
t otal 834233 232394 88368 309730 88368 889891 3272130
d r volker böttcher 203639 021209 24330p 101819 27810p 283159 041212 101820 – –
202615 061210 22900p 101213 202615 745015
283843 071211 16470p 071214 283843 1043691
t otal 690097 – 101819  283159  101820 486458 1788706
g rand t otal 5360478 1126759 663881 2253187 663883 5159473 18971382
n otes
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 psp awards granted in 2010 are described in the single total figure of remuneration section psp awards granted in 2009 were 
subject to the same performance measures and targets
 •  t he performance measures and targets applicable for psp awards granted in 2012 are described in the scheme interests awarded section psp awards granted in 2011 are subject to the 
same performance measures and targets
2  t he maximum value is based on the 30 september 2013 share price of 3677p t he anticipated value of the psp shares that will vest for the threeyear period ended 30 september 2013 
see page 89 has been calculated using the threemonth average for the year ended 30 september 2013 ie 3650p 
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continued
statement of n onexecutive directors’ shareholdings
as at 30 september 2013 the nonexecutive directors’ interests in 
ordinary shares of the company were
n onexecutive d irectors
interests in shares held at 
30 september 2013
f riedrich joussen c hairman –
sir michael h odgkinson d eputy c hairman 20000
h orst baier –
t ony c ampbell 52044
sebastian ebel –
janis kong 15000
c oline mcc onville –
minnow powell 6891
d r erhard schipporeit –
d r a lbert schunk –
h arold sher –
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 g eneral meeting on t hursday 6 f ebruary 2014 
during the year the price of the company’s ordinary shares ranged 
between 4015 pence and 2320 pence and the midclosing price on 
monday 30 september 2013 was 3677 pence
for the year ended 30 september 2013 peter long received and 
retained n onexecutive d irectors’ fees in respect of an appointment 
with rentokil initial plc of £60000 2012 £63750 no other executive 
d irector currently holds an external nonexecutive director post
on 4 october 2013 william waggott and tony campbell were allocated 
44 and 525 additional shares respectively under the d ividend 
r einvestment plan open to all shareholders under the same terms 
t here have been no further changes in the interests of the d irectors 
between 30 september 2013 and the date of approval of the 2013 
annual r eport and accounts
performance graph and table
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 t his index is 
considered by the c ommittee to be the most appropriate comparison 
reference for these purposes f rom october 2011 this index has also 
been used for performance measurement under the c ompany’s 
longterm incentive schemes as a member of the ftse 100 the 
performance of this index has also been shown
30 sept 08 30 sept 09 30 sept 10 30 sept 11 30 sept 12 30 sept 13
tui travel plc
international travel  leisure excluding  tui travel plc
ftse 100
0
50
100
150
200
250
t he table below shows the historic levels of peter l ong’s pay single 
figure of total remuneration and annual variable and longterm 
incentive pay awards as a percentage of plan maxima
f inancial year
single figure of annual 
remuneration 
£000 
a nnual variable pay 
awarded as percentage 
of maximum
value of vested  
longterm incentive 
awards as percentage  
of maximum
201213 10122 92 100
201112 6737 98 65
201011 4935 100 65
200910 6309 50 74
200809 5041 100 96
n otes
 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
percentage change in remuneration of ceo
we have an international workforce of more than 55000 the committee 
considers the most meaningful comparator group to be the u k g roup 
r eward population gr p whose remuneration is managed on a central 
rather than local basis t here were 94 managers in this group at 
30 september 2013 
t he following table shows the percentage change in remuneration 
between the years ended 30 september 2012 and 30 september 2013 
for the ce o and comparator group
salary benefits a nnual bonus
c omparator group percentage 
change including travel concessions 29 143 140
c omparator group percentage 
change excluding travel concessions 29 23 140
ce o percentage change including 
travel concessions 00 83 61
ce o percentage change excluding 
travel concessions 00 00 61
r elative importance of spend on pay 
r emuneration 
paid to or 
receivable by 
all employees 
of the g roup 
£m
d istributions to 
shareholders 
by way of 
dividends 
£m
year ended 30 september 2013 1827 132 
year ended 30 september 2012 1734 128 
percentage change 5 3
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implementation of the policy
the policy will apply to any remuneration and loss of office payments 
made on or after 1 october 2014 
r emuneration for the year commencing 1 o ctober 2013
s alary
the salaries that are effective from 1 october 2013 are
a nnual salary 
peter l ong £850000
johan l undgren £700000
w illiam w aggott £550000
d r volker böttcher €400000
benefits excluding pension
the benefits that are effective from 1 october 2013 are
• peter long carcar allowance private healthcare cover and holiday 
travel concessions
• johan lundgren carcar allowance private healthcare cover and 
holiday travel concessions t he support relating to his relocation to 
the u k from sweden on 1 august 2009 will decrease during the year
• william waggott carcar allowance private healthcare cover and 
holiday travel concessions 
• d r volker böttcher provision of a fullyexpensed company car  
and holiday travel concessions 
retirement benefits
retirement benefits will continue to be applied as per the policy  
and application in previous years
annual bonus
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 2013 are
g roup  
profitcash
source market 
profitcash
mainstream 
sector profit
individual 
business 
objectives
peter l ong 80 – – 20
johan l undgren 80 – – 20
w ill w aggott 80 – – 20
d r volker böttcher 20 45 15 20
dabs
a s stated on page 90 it is anticipated that da bs deferred awards and 
matching awards will be made in d ecember 2013 in respect of the 
financial year ended 30 september 2013 the performance measures 
and targets for the matching awards are outlined on page 93
psp
it is anticipated that a psp award will be made as follows
a nticipated value of d ecember 2013 award 
£000 
peter l ong 1275
johan l undgren 700
w illiam w aggott 550
d r volker böttcher –
t he performance measures and targets are as outlined on page 93  
of this report 
c onsideration by the directors of matters relating  
to directors’ remuneration
t he c ommittee 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 d irectors and other members of the 
g roup management board
t he c ommittee formulates and applies the policy with consideration 
to the prevailing economic climate in the major economies in which the 
g roup operates it also observes the spirit of the g roup’s core values 
which cultivate responsible leadership in the external and internal 
social environment c onsequently the c ommittee closely considers 
the c ompany’s performance in building both shareholder value and 
a secure future for all stakeholders
t he activities of the c ommittee are governed by its t erms of r eference 
which were last revised on 25 march 2013 and can be found on the 
c ompany’s website
t he c ommittee currently comprises three n onexecutive d irectors 
each of whom the c ompany deems to be independent a ll three were 
in place throughout the whole year
• c oline mcc onville – c hairman
• sir michael h odgkinson
• janis kong
t he c ompany’s major shareholders are supportive of sir michael 
h odgkinson continuing in his role whilst an orderly succession plan 
is put in place
the following resigned from the committee during the year
• t ony c ampbell 1 october 2012
• r ainer f euerhake 8 f ebruary 2013
• d r michael f renzel 25 march 2013
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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 three independent members of the committee have no conflicts of 
interest arising from crossdirectorships members of the c ommittee 
have no daytoday involvement in the running of the c ompany 
t he c ommittee met six times during the year d etails of attendance 
can be found in the c orporate g overnance r eport see page 68 
during the year the committee carried out the following activities
• r eview of the executive d irector and gm b r emuneration policy and 
review of individuals’ reward arrangements in line with the policy
• c onsultation with shareholders and external bodies regarding 
the policy
• a ssessment of the achievement of executive d irectors’ and gm b 
members’ performance against their annual bonus objectives 
• a ssessment of performance for the vesting of the 2009 performance 
share plan and d eferred annual bonus scheme awards
• approval of the d irectors’ r emuneration r eport for the year ended 
30 september 2012 
• c onsideration of market trends in executive remuneration
• d eliberation about corporate governance developments and their 
potential impact 
• r eview of the executive shareholding guidelines and their application
• agreement of the annual bonus psp and dabs performance 
targets for the year ended 30 september 2013
d uring the year the c ommittee considered the results of a r emuneration 
committee effectiveness survey no significant concerns were raised
advisors
w hile it is the c ommittee’s responsibility to exercise independent 
judgement the committee does request advice from management 
and professional advisers as appropriate to ensure that its decisions 
are fully informed advice or services were provided to the c ommittee 
during the year by 
• d eloitte ll p d eloitte
• andrew john – c ompany secretary 
now group director – secretariat health  safety and risk
• peter l ong – c hief executive
• jacky simmonds – g roup hr d irector and
• t im t aylor – g roup r eward d irector
t he g roup hr d irector has direct access to the c hairman of the 
committee and together with the group reward director advised the 
c ommittee on reward matters relating to the executive d irectors and 
members of the gm b and broader g roup hr strategy and policy 
t he c hief executive attends meetings of the c ommittee to make 
recommendations relating to the performance and remuneration of 
his direct reports and the c ompany secretary acts as secretary to 
the c ommittee executives are not in attendance when their own 
remuneration is considered 
t he c ommittee is authorised by the board to seek any information 
it requires from any employee of the g roup t he c ommittee is also 
authorised to require the attendance of any d irector at any of 
its meetings
during the year the committee received independent advice on 
executive remuneration matters from d eloitte d eloitte received 
£128000 in fees for these services 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 u k
t he c ommittee appointed d eloitte to the role of independent 
advisers to the committee in 2008 following an interview process 
t he c ommittee is comfortable that the d eloitte engagement partner 
and team which provide remuneration advice to the committee 
do not have connections with tui t ravel plc that may impair their 
independence or objectivity in addition during the year ended 
30 september 2013 deloitte also provided various tax services to 
the c ompany
h erbert smith f reehills ll p was appointed to provide advice on law 
and regulation in relation to share scheme matters which is provided 
to the c ompany and is available to the c ommittee l egal fees relate 
to advice provided to the company and not the committee and are 
charged on a timecost basis h erbert smith f reehills ll p also 
provides general legal advice to the c ompany
statement of shareholder voting
at the annual g eneral meeting of tui t ravel plc on t hursday 7 f ebruary 
2013 the results of the vote regarding r esolution 2 to approve the 
directors’ remuneration report were
votes f or votes a gainst
n umber  n umber  votes t otal votes w ithheld
921085873 9523 46105489 477 967191362 9101232
t he r emuneration r eport was approved by a duly authorised 
c ommittee of the board of d irectors on 9 d ecember 2013 and 
signed on its behalf by 
c oline mcc onville
c hairman of the r emuneration c ommittee
9 d ecember 2013
r emuneration report
continued
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a special resolution will also be proposed to renew the d irectors’ 
authority to repurchase the c ompany’s ordinary shares in the market 
t he authority will be limited to a maximum of 111801067 ordinary 
shares and sets the minimum and maximum prices which will be paid 
t his authority will expire at the end of the agm held in 2015 or if 
earlier on 7 may 2015
directors’ indemnity arrangements
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 
d irectors whether in their capacity as d irectors of the c ompany 
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 c ompanies act 2006
significant agreements – change of control
the companies act 2006 requires us to disclose any significant 
agreements that take effect alter or terminate on a change of control 
of the c ompany
relationship agreement with tui ag 
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 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 r elationship a greement tui 
ag will lose certain rights under the r elationship a greement including 
its rights in respect of the composition of the board
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 a number of 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 shares held 
by all bondholders were converted tui ag would have had a holding 
of 50 as at 30 september 2013 a s a percentage of shares in issue 
tui ag ’s holding as at 30 september 2013 was 5448 2012 5626 
– see page 98 for an explanation of the reduction
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 
d irectors present at the meeting of the board at which such matter is 
considered including material changes to the business of any g roup 
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
pages 66 to 102 inclusive together with the sections of the annual 
r eport incorporated by reference form part of the d irectors’ r eport 
which is presented in accordance with and with reliance upon 
applicable english company law t he liabilities of the d irectors in 
connection with that report shall be subject to the limitations and 
restrictions provided by such law
other information which forms part of the d irectors’ r eport  
can be found in the following sections of the annual r eport
information l ocation in a nnual r eport
acquisitions f inancial statements – note 13
a udit c ommittee r eport page 73
board and c ommittee membership page 66
corporate governance report page 68
d irectors’ biographies page 66
d irectors’ responsibility statements page 102
f inancial risk management page 42
future developments page 63
g reenhouse gas emissions page 30
n omination c ommittee r eport page 78
other statutory disclosures page 99
our people page 34
pension schemes f inancial statements – note 6c 
post balance sheet events f inancial statements – note 35
results and dividends page 8 and page 54 to 63
share capital f inancial statements – note 24
social responsibility page 26
sustainable development page 26
political donations
the group made no political contributions during the year 2012 £nil
directors and their interests
d etails of d irectors and their biographies can be found in a separate 
section called ‘board of d irectors’ on page 66 and d irectors’ interests 
are given in the remuneration report on pages 93 and 96
powers for the company issuing or buying back its 
own shares
t he c ompany was authorised by shareholders at the agm held in 
f ebruary 2013 to purchase in the market up to 10 of the c ompany’s 
issued share capital as permitted under the c ompany’s articles 
no shares 2012 no shares have been bought back under this 
authority during the year ended 30 september 2013 t his standard 
authority is renewable annually and the d irectors will seek to renew 
this authority at the agm to be held on 6 f ebruary 2014 t he d irectors 
were granted authority in 2013 to allot relevant securities up to a 
maximum nominal amount of £7453404460 that authority will  
apply until the conclusion of the 2014 agm  
at the agm in f ebruary 2014 shareholders will be asked to grant an 
authority to allot shares in the capital of the c ompany up to a maximum 
nominal amount of £7453404460 representing the abi guideline limit 
of approximately 66 of the c ompany’s issued ordinary share capital 
of this amount 372670223 shares representing approximately 33 
of the c ompany’s issued ordinary share capital can only be allotted 
pursuant to a rights issue t he power will last until the conclusion of 
the agm in 2015 or if earlier on 7 may 2015 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
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£90 million of bonding facility agreements
a greements between a number of surety companies and the c ompany 
relating to bonding facilities of £90 million currently provided to the 
company contain terms which give the sureties the right to cancel all 
commitments to the c ompany and to declare all outstanding bonds 
immediately due and payable if a change of control occurs f or the 
purpose of this agreement a change of control occurs if
• any person or group of persons acting in concert gains control  
of the c ompany or
• tui ag and any persons acting in concert with it acquires or acquire 
75 or more of the voting shares in the company
£275 million partnership arrangements 
in may 2011 the c ompany 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 u nder the partnership 
arrangements the c ompany 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 windup 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 c ompany which 
results in a reduction of the c ompany’s consolidated net assets to less 
than £1100 million following the occurrence of a change of control 
f or 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 c ompany 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 
c ompany’s listing is cancelled
restricted shares 
235391523 ordinary shares of the c ompany representing 2087 
of the c ompany’s share capital on an undiluted basis of which 
206488962 shares had previously been transferred by tui ag to 
two independent special purpose companies plus 28902561 shares 
which have over time been added under the company’s dividend 
reinvestment plan were restricted from being transferred tui ag 
remained entitled to receive the dividend yields from these shares and 
also kept the voting rights attached to them tui ag was also entitled 
to repurchase 148424474 shares 2012 146399656 with 2024818 
being added under the company’s dividend reinvestment plan by 
april 2013 at the latest and 86967049 of these shares – after an 
extension agreement taking effect as of 10 october 2013 and also 
replacing the first special purpose company with deutsche bank ag 
– by july 2016 at the latest 
in april 2013 an exchangeable bond for which the 148424474 shares 
formed the exchange property reached maturity f ollowing the 
exchange process 21867865 shares were returned to the market and 
126556609 shares were transferred back to tui ag  t his resulted in 
an overall reduction in the voting rights of tui ag of 21867865 ie 
from 5644 to 5448 
bank credit facilities
some bank facility agreements incorporate terms which give the lending 
banks the right to cancel all commitments to the c ompany and to 
declare all outstanding credits and accrued interest immediately due and 
payable if a change of control occurs f or the purpose of this agreement 
a change of control occurs if
• any person or group of persons acting in concert gains control of  
the c ompany 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 £1120m bank revolving credit facilities which mature  
in june 2015 
• £185m of bonding and letter of credit facilities which mature  
in june 2015
• £350m convertible bond due october 2014
• £400m convertible bond due april 2017 and
• £300m 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
£350 million 60 convertible bonds
in september 2009 the company issued £350 million of 60 convertible 
bonds with a conversion price set at 34930p per share the settlement 
took place on 5 october 2009 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 f or 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 c ompany 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 
• the f ree f loat of the c ompany is less than 30 of the issued 
ordinary shares for at least five consecutive dealing days where the 
f ree f loat is all outstanding ordinary shares of the c ompany less 
those held by or on behalf of tui ag  its associates and any persons 
acting in concert with it
£400 million 490 convertible 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 f or 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 c ompany 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 
• the f ree f loat of the c ompany 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 c ompany 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 
other statutory disclosures
continued
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in respect of the second special purpose company holding an interest 
in the company’s shares in april 2010 the company issued a £400m 
fixed rate 49 convertible bond of which such independent special 
purpose company antium f inance l td subscribed for 50 tui ag 
entered into a forward purchase agreement with a ntium f inance l td 
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 f inance l td has assigned its rights to d eutsche bank ag 
and the entitlement of tui ag to purchase the bonds is extended to 
july 2016 at the latest
significant shareholders
at the date of approval of the annual report  accounts 2013 the 
company had been notified of the following holdings in excess of 3 
in its issued share capital 
shareholder n umber of shares percentage 
tui ag 609120138 5448
blackr ock 35150817 314
post balance sheet events
details of post balance sheet events are included in note 35 of the 
consolidated financial statements 
going concern 
after making appropriate enquiries the directors have reasonable 
expectation that the company and group have adequate resources 
to continue operations for the foreseeable future f or 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
independent auditors
a resolution to reappoint pricewaterhousecoopers llp will be proposed 
at the annual g eneral meeting 
annual general meeting
t he annual g eneral meeting agm  will be held on t hursday 6 f ebruary 
2014 at 1030am at the offices of herbert smith freehills llp exchange 
h ouse primrose street l ondon ec 2a 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 d irectors on 9 d ecember 2013 and signed on its behalf by 
joyce w alter the c ompany secretary
by order of the board
joyce walter
c ompany secretary
9 d ecember 2013
c ompany n umber 6072876
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each of the d irectors whose names and functions are listed on page 
66 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 
g roup and
• the directors’ report includes a fair review of the development  
and performance of the business and the position of the g roup 
together with a description of the principal risks and uncertainties 
that it faces
the directors also confirm that
• so far as they are aware th ere is no relevant audit information  
of which the c ompany’s auditors are unaware and
• they have taken all the steps that they ought to have taken as a 
director in order to make themselves aware of any relevant audit 
information and to establish that the c ompany’s auditors are aware 
of that information
the directors’ responsibilities statement was approved by a duly 
authorised c ommittee of the board of d irectors on 9 d ecember 2013 
and signed on its behalf by william waggott chief financial officer
william waggott
chief financial officer
9 d ecember 2013
t he d irectors are responsible for preparing the annual r eport 
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 
r eporting standards ifr ss as adopted by the european u nion and 
the parent company financial statements in accordance with united 
kingdom g enerally accepted accounting practice u nited kingdom 
accounting standards and applicable law u nder 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 then apply them consistently
• make judgements and accounting estimates that are reasonable 
and prudent
• state whether ifr ss as adopted by the european u nion and 
applicable uk accounting standards have been followed subject 
to any material departures disclosed and explained in the g roup 
and parent company financial statements respectively and 
• prepare the financial statements on the going concern basis unless 
it is inappropriate to presume that the c ompany 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 c ompany and the g roup 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 a rticle 4 of the ia s r egulation t hey are also responsible 
for safeguarding the assets of the c ompany and the g roup and hence 
for taking reasonable steps for the prevention and detection of fraud 
and other irregularities
t he d irectors 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 
t he d irectors consider that the annual r eport and accounts taken 
as a whole is fair balanced and understandable and provides the 
information necessary for shareholders to assess the c ompany’s 
performance business model and strategy 
d irectors’ responsibilities
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 103 group fin an cial statemen ts
 104 independent auditors’ report g roup
 107 c onsolidated income statement
 108 c onsolidated statement  
  of comprehensive income 
 109 c onsolidated balance sheet
 110 c onsolidated statement of changes  
  in equity
 111 consolidated statement of cash flows
 112 not es to the con sol idated  
  fin an cial statemen ts
 112 1 accounting policies
 122 2 key accounting estimates  
   and judgements
 1 2 3 3   s eg m e nt al i nf o r m a t i o n
 126 4  separately disclosed items
 127 5 net financial expenses
 128 6 employees
 137 7 income expenses and  
   auditors’ remuneration
 138 8 t axation
 139 9 dividends
 140 10 intangible assets
 143 11  property plant and equipment
 145 12 investment in joint ventures  
   associates and other investments
 147 13 business combinations
 149 14 d eferred tax assets and liabilities
 150 15 inventories
 151 16 trade and other receivables
 152 17 cash and cash equivalents
 152 18 other investments
 152 19 assets classified as held for sale 
 153 20 interestbearing loans  
   and borrowings
 154 21 c urrent trade and other payables
 154 22 provisions for liabilities
 155 23 noncurrent trade and  
   other payables
 155 24 c alled up share capital
 156 25 capital and reserves
 158 26 f inancial instruments 
 167 27 movements in cash and  
   net debt and cash conversion
 168 28  operating lease commitments
 168 29 c apital commitments
 168 30 c ontingent liabilities
 169 31 r elated party transactions
 171 32 principal operating subsidiaries
 173 33 earnings per share
 1 7 4 34   c ap i t al m an a g e m e nt
 174 35  post balance sheet events
 174 36 u ltimate parent company
 175 in depen den t auditors’ report  
  paren t company
 176 c ompany balance sheet
 177 n otes to the c ompany’s  
  financial statements
f inancial statements
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independent auditors’ report to the members of tui t ravel plc
based on our professional judgement we set materiality for the group 
financial statements as a whole at £275 million in arriving at this 
judgement we have had regard to the group’s underlying operating 
profit as defined in note 1bii on page 112 we used the group’s 
underlying operating profit in order to exclude the volatility from one 
off items acquisition related expenses impairment of goodwill 
taxation and interest as in our view this is the most relevant measure 
for the members of the company in assessing financial performance
we agreed with the audit committee that we would report to them 
misstatements identified during our audit above £14m as well as 
misstatements below that amount that in our view warranted 
reporting for qualitative reasons
overview of the scope of our audit
the group is structured along three business 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 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 one other firm 
working under our instruction 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 17 reporting units due to the risk characteristics of those units 
and another 18 reporting units so that the major mainstream source 
markets were covered the total of these units gave us coverage of 
85 of the group’s revenue as a consequence of the maturing control 
environment and in consultation with the audit committee we added 
a further 14 smaller units principally made up of accommodation  
destinations and specialist  activity reporting units
in addition we performed higher level procedures with respect to  
the remaining reporting units including specific audit procedures on 
certain account balances and transactions we also performed work on 
the consolidation of the reporting units this gave us the evidence we 
needed for our opinion on the group financial statements as a whole
areas of particular audit focus
in preparing the financial statements the directors made a number of 
subjective judgements for example in respect of significant accounting 
estimates that involved making assumptions and considering future 
events that are inherently uncertain we primarily focused our work in 
these areas by assessing the directors’ judgements against available 
evidence forming our own independent judgements and evaluating 
the disclosures in the financial statements
in our audit we tested and examined information using sampling and 
other auditing techniques to the extent we considered necessary to 
provide a reasonable basis for us to draw conclusions we obtained 
audit evidence through testing the effectiveness of controls 
substantive procedures or a combination of both 
we considered the following areas to be those that required particular 
focus in the current year this is not a complete list of all areas of focus 
identified by our audit we discussed these areas of focus with the 
audit committee their report on those matters that they considered 
to be significant issues in relation to the group financial statements is 
set out on pages 73 to 74
report on the group financial statements
our opinion
in our opinion the group financial statements
• give a true and fair view of the state of the group’s affairs as at 
30 september 2013 and of its profit and cash flows for the year then 
ended
• have been properly prepared in accordance with international 
financial reporting standards ifrs as adopted by the european 
union
• have been prepared in accordance with the requirements of the 
companies act 2006 and article 4 of the ias regulation
this opinion must be read in the context of what we say below
what we have audited
the group financial statements which are prepared by tui travel plc 
comprise
• the consolidated income statement for the year ended 
30 september 2013
• the consolidated statement of comprehensive income for the year 
ended 30 september 2013
• the consolidated balance sheet as at 30 september 2013
• the consolidated statements of changes in equity and cash flows  
for the year ended 30 september 2013
• notes to the financial statements which include a summary of 
significant accounting policies and other explanatory information
the financial reporting framework that has been applied in their 
preparation comprises applicable law and ifrs as adopted by the 
european union
certain disclosures required by the financial reporting framework 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
what an audit of financial statements involves 
we conducted our audit in accordance with international standards  
on auditing uk and ireland 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 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 
in addition we read all the financial and nonfinancial information  
in the annual report  accounts 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
overview of our audit approach
materiality
we set certain thresholds for materiality these helped us to 
determine 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 
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area of focus how the scope of our audit addressed the risk
goodwill and intangible impairment assessment
the directors have booked an impairment charge of £188m leaving a 
balance of £37bn of goodwill and £07bn of intangibles on the balance 
sheet
we focused on this area because the determination of whether or not  
an impairment charge for goodwill was necessary involved significant 
judgements about the future results of many parts of the business  
as set out in note 10 to the financial statements
we evaluated and challenged the directors’ future cash flow forecasts and 
the process by which they were drawn up including comparing them to the 
latest board approved three year plans and testing the underlying value in 
use calculations 
we challenged 
• the directors’ key assumptions for long term growth rates in the 
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 also performed sensitivity analysis around those cash generating units 
where the impairment review showed they were closest to impairment 
including challenging the speed of recovery in the poorer performing 
businesses h aving ascertained the extent of change in those assumptions 
that either individually or collectively would be required for the goodwill 
and intangibles to be impaired we considered the likelihood of such a 
movement in those key assumptions arising and the adequacy of the 
disclosures made in note 10 to the financial statements
entry into service of new aircraft and related accounting
significant costs have been incurred and credits received with respect  
to the introduction of the boeing 787 aircraft to the fleet we focused  
on this area because there is judgement involved in the accounting 
treatment of these costs and credits both in terms of timing of 
recognition and their classification in the income statement
we read and understood the clauses in and subsequent amendments to 
the original contracts relating to the acquisition of these new aircraft we 
evaluated the amounts and nature of the sums to be received by the group 
and the costs incurred or to be incurred related to the introduction of a 
new aircraft type and tested a sample of these items 
we evaluated the appropriateness of how the directors have accounted  
for and presented such items in the financial statements
provision for taxes
we focused on this area because the actual or potential challenges by 
the tax authorities particularly in spain and germany involve a level  
of inherent uncertainty as to the amount of provision there is also 
judgement required with respect to the adequacy of the disclosures 
made in the financial statements
we obtained the latest correspondence between the group and the 
relevant tax authorities understood the judgements made by the 
directors held meetings with senior management and we consulted the 
group’s external advisers and considered their views on these matters  
we challenged the judgements made by the directors and evaluated the 
appropriateness of the provisions and disclosures made
maturity of control environment
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 
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 the smaller businesses 
operated by the group
we evaluated the progress of the group’s project that is designed  
to formalise certain controls policies and processes to improve the 
robustness of the control environment throughout the businesses 
operated by the group
given the ongoing nature of this project our audit approach incorporated
• a greater focus on those reporting units with weaker control 
environments and
• a greater emphasis on substantive testing of transactionsbalances and 
key reconciliations 
after discussion with the audit committee we included a greater number 
of smaller businesses in scope for an audit of their complete financial 
information
risk of fraud in revenue recognition
most businesses face a risk of fraud in revenue recognition 
we focused on the timing of recognition of revenue because there is a 
difference between the timing of receipt of cash from customers and the 
subsequent recognition of revenue on the holiday departure date and 
because the reservation systems and interfaces with the accounting 
records are complex
we assessed and tested the design and operation of the controls over 
revenue systems and also tested key reservation system reconciliations at 
30 september 2013 we checked that revenue had been recognised at the 
correct time including testing deferred revenue balances with reference to 
departure dates
our work included testing a sample of manual journals and assessing the 
consistency of the application of the revenue recognition policy
risk of management override of internal controls 
management in all businesses are in a position of authority that means 
they can override internal controls established to prevent fraud or error
we assessed the overall control environment of the group and interviewed 
senior management and the group’s legal compliance and internal audit 
functions 
we understood the key trigger points for incentive payments to senior 
management and examined the significant accounting estimates and 
judgements relevant to the financial statements for evidence of bias by  
the directors 
we also tested significant oneoff transactions performed some 
unpredictable procedures and tested manual journal entries and key 
reconciliations
17financialxgroupxauditxopinionv18 copyindd   105 13122013   1757 106 tui travel p l c annu al re po rt  acc ounts 2013
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going c oncern
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 in the directors’ statement the directors have concluded that 
it is appropriate to prepare the group’s financial statements using the 
going concern basis of accounting the going concern basis assumes 
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
h owever 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
opinion on matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and the 
directors’ report for the financial year for which the group financial 
statements are prepared is consistent with the group financial 
statements
other matters on which we are required to report by 
exception
adequacy of information and explanations received
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
directors’ remuneration
under the companies act 2006 we are required to report if in our 
opinion certain disclosures of directors’ remuneration specified by  
law have not been made and under the listing rules we are required 
to review certain elements of the directors’ remuneration report  
we have no exceptions to report arising from these responsibilities
corporate governance statement
under the listing rules we are required to review the part of the 
corporate governance statement relating to the company’s 
compliance with nine provisions of the uk corporate governance code 
“the code” we have nothing to report having performed our review
on page 102 of the annual report as required by the uk corporate 
governance code provision c11 the directors state 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 on 
pages 73 to 74 as required by c38 of the code the audit committee 
has set out the significant issues that it considered in relation to the 
financial statements and how they were addressed under isas  
uk  ireland we are required to report to you if in our opinion
• the statement given by the directors is materially inconsistent with 
our knowledge of the group acquired in the course of performing 
our audit or
• the section of the annual report 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
other information in the annual report
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 group 
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
responsibilities for the financial statements and the audit
our responsibilities and those of the directors 
as explained more fully in the directors’ responsibilities statement set 
out on page 102 the directors are responsible for the preparation of 
the group 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 group 
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
other matter
we have reported separately on the parent company financial 
statements of tui travel plc for the year ended 30 september 2013 
and on the information in the directors’ remuneration report 
described as having been audited
roger de peyrecave s enior s tatutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
london
9 december 2013
independent auditors’ report to the members of tui t ravel plc
continued
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strategic re port
 
bu sine ss and financial review
 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
n ote
year ended 
30 s eptember 
2013 
£m
year ended 
30 september 
2012 
£m
revenue 3 15051 14460 
c ost of sales 13395 12965
gross profit 1656 1495 
a dministrative expenses 1376 1199
share of profits of joint ventures and associates 12 17 5 
operating profit 297 301 
analysed as
underlying operating profit 3 589 490 
separately disclosed items 4 24 92
acquisition related expenses 13a 65 62
impairment of goodwill 10 188 20
impairment of available for sale financial asset – 10
taxation on profits and interest of joint ventures and associates 12 15 5
297 301 
financial income 5 86 96 
financial expenses 5 202 196
net financial expenses 116 100
profit before tax 181 201 
taxation charge 8 118 64
profit for the year 63 137 
attributable to
equity holders of the parent 60 138 
noncontrolling interests 3 1
profit for the year 63 137 
n ote
year ended 
30 s eptember 
2013 
pence
year ended 
30 september 
2012 
pence
basic and diluted earnings per share for profit attributable  
to the equity holders of the company during the year
basic earnings per share 33 54 125
diluted earnings per share 33 54 123
consolidated income statement
for the year ended 30 september 2013
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n ote
year ended 
30 s eptember 
2013 
£m
year ended 
30 september 
2012 
£m
profit for the year 63 137 
other comprehensive lossincome
items that will not be reclassified to profit and loss
actuarial losses arising in respect of defined benefit pension schemes 6c  23 172
tax on actuarial losses 8iii 11 32 
items that will not be reclassified to profit and loss 34 140
items that may be subsequently reclassified to profit and loss
foreign exchange translation 44 160
foreign exchange gains recycled through the consolidated income statement 1 –
cash flow hedges
– movement in fair value 26j 76 42
– amounts recycled to the consolidated income statement 26j 5 30
tax on cash flow hedges 8iii 22 15 
available for sale financial assets
– movement in fair value 12 1 4
– amounts recycled to the consolidated income statement – 10 
items that may be subsequently reclassified to profit and loss 15 211 
other comprehensive loss for the year net of tax 49 351
total comprehensive incomeloss for the year 14 214
total comprehensive incomeloss for the year
attributable to
equity holders of the parent 15 211
noncontrolling interests 1 3
total 14 214
consolidated statement of comprehensive income
for the year ended 30 september 2013
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bu sine ss and financial review
 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
n ote
30 s eptember 
2013 
£m
30 september 
2012 
£m
noncurrent assets
intangible assets 10 4384 4482 
property plant and equipment 11 1238 1096 
investments in joint ventures and associates 12 243 258 
other investments 12 36 66 
trade and other receivables 16 205 225 
derivative financial instruments 26i 3 21 
d eferred tax assets 14 168 125 
6277 6273 
c urrent assets
inventories 15 57 61 
other investments 18 36 19 
trade and other receivables 16 1331 1312 
income tax recoverable 24 15 
derivative financial instruments 26i 41 98 
cash and cash equivalents 17 1753 830 
assets classified as held for sale 19 10 13 
3252 2348 
total assets 9529 8621 
current liabilities
interestbearing loans and borrowings 20 594 70
retirement benefits 6c  3 2
derivative financial instruments 26i 147 125
t rade and other payables 21 4773 4549
provisions for liabilities 22 277 300
income tax payable 76 39
5870 5085
noncurrent liabilities
interestbearing loans and borrowings 20 1012 868
retirement benefits 6c  658 646
derivative financial instruments 26i 26 20
t rade and other payables 23 79 48
provisions for liabilities 22 362 316
d eferred tax liabilities 14 31 29
2168 1927
total liabilities 8038 7012
n et assets 1491 1609 
equity
called up share capital 24 112 112 
c onvertible bond reserve 25 91 88 
other reserves 25 2625 2627 
accumulated losses 25 1378 1262
total equity attributable to equity holders of the parent 25 1450 1565 
noncontrolling interests 25 41 44 
total equity 25 1491 1609 
the financial statements on pages 107 to 174 were approved by a duly authorised committee of the board of directors on 9 december 2013 and 
signed on its behalf by
peter j long         william h waggott
chief executive         chief financial officer
company number 6072876
consolidated balance sheet
for the year ended 30 september 2013
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consolidated statement of changes in equity
for the year ended 30 september 2013
other reserves
called up 
share 
capital 
£m
c onvertible 
bond 
reserve 
£m
merger 
reserve 
£m
t ranslation 
reserve 
£m
h edging 
reserve 
£m
accumulated 
losses 
£m
equity 
holders 
of parent 
£m
n on 
controlling 
interests 
£m
total 
equity 
£m
at 1 october 2011 112 85 2523 286 37 1155 1888 50 1938
profit for the year – – – – – 138 138 1 137 
other comprehensive loss 
for the year – – – 157 62 130 349 2 351
total comprehensive lossincome  
for the year – – – 157 62 8 211 3 214
transactions with owners
sharebased payment – charge for the year – – – – – 16 16 – 16
sharebased payment – disposal on 
award of shares – – – – – 5 5 – 5
d ividends – – – – – 125 125 3 128
acquisition of noncontrolling interests – – – – – 1 1 – 1
change in deferred tax rate on equity  
portion of convertible bond – 3 – – – – 3 – 3
at 30 s eptember 2012 112 88 2523 129 25 1262 1565 44 1609
other reserves
called up 
share 
capital 
£m
c onvertible 
bond 
reserve 
£m
merger 
reserve 
£m
t ranslation 
reserve 
£m
h edging 
reserve 
£m
accumulated 
losses 
£m
equity 
holders 
of parent 
£m
n on 
controlling 
interests 
£m
total 
equity 
£m
at 1 october 2012 112 88 2523 129 25 1262 1565 44 1609
profit for the year – – – – – 60 60 3 63
other comprehensive incomeloss  
for the year – – – 56 58 43 45 4 49
total comprehensive incomeloss  
for the year – – – 56 58 17 15 1 14
transactions with owners
sharebased payment – charge for the year – – – – – 15 15 – 15
sharebased payment – disposal on 
award of shares – – – – – 16 16 – 16
d ividends – – – – – 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
at 30 s eptember 2013 112 91 2523 185 83 1378 1450 41 1491
details of reserve movements are set out in note 25 to the consolidated financial statements
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d irect or s’ re port
 
financial statements 
shareh older inf ormati on
consolidated statement of cash flows
for the year ended 30 september 2013
n ote
year ended 
30 s eptember 
2013 
£m
year ended 
30 september 
2012 
£m
profit for the year 63 137
adjustment for
d epreciation and amortisation 1011 248 219
impairment of intangible assets and property plant and equipment 1011 14 22 
impairment of goodwill 10 188 20 
equitysettled sharebased payment expenses 6d  15 16 
profit on sale of property plant and equipment 7 10 9
share of profit of joint ventures and associates 12 17 5
profitloss on foreign exchange 7 19 14 
impairment of available for sale financial asset – 10 
change in value of assets held at fair value through profit and loss 12 5 –
dividends received from joint ventures and associates 12 43 4 
pension curtailment and settlement gain recognised in consolidated income statement 6c  25 1
f inancial income 5 86 96
f inancial expenses 5 202 196 
t axation 8 118 64 
operating cash flow before changes in working capital and provisions 729 591 
decrease in inventories 3 17 
decreaseincrease in trade and other receivables 63 55
increase in trade and other payables 59 126 
belgian vat receipt 17 98 –
increasedecrease in provisions and retirement benefits 11 35
cash flows generated from operations 963 644 
interest paid 90 75
interest received 19 15 
income taxes paid 110 82
cash flows generated from operating activities 782 502 
investing activities
proceeds from sale of property plant and equipment 192 116 
acquisition of subsidiaries net of cash acquired 13b 10 23
proceeds from other investments – 1 
investment in joint ventures associates and other investments 41 25
acquisition of property plant and equipment 311 287
acquisition of intangible assets 10 102 91
cash flows used in investing activities 272 309
financing activities
proceeds from new loans and deposits taken 82 14 
repayment of borrowings 44 43
repayment of finance lease liabilities 26 19
dividends paid to ordinary and noncontrolling interests 25 132 128
cash flows used in financing activities 120 176
net increase in cash and cash equivalents 390 17 
cash and cash equivalents at start of the year 17 830 902 
noncash movement in bank overdrafts 1720 491 –
effect of foreign exchange on cash held 42 89
cash and cash equivalents at end of the year 17 1753 830 
movements in cash and net debt are presented in note 27a
cash flows generated from operating activities are analysed as
year ended 
30 s eptember 
2013 
£m
year ended 
30 september 
2012 
£m
cash flows generated from underlying operating activities 684 502
belgian vat receipt 17 98 –
total cash flows generated from operating activities 782 502
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notes to the consolidated financial statements
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 available  
for sale 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 
reconciliation of underlying operating profit to underlying 
profit before tax
note
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
underlying operating profit 3 589 490 
net underlying financial expenses 5 116 100
underlying profit before tax 473 390 
iii separately disclosed items
separately disclosed items are those significant items which in 
management’s judgement are highlighted by virtue of their size or 
incidence to enable a full understanding of the group’s financial 
performance such items are included within the income statement 
caption to which they relate note 4 
iv business and financial 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 note 26 sets 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 funding and liquidity
the board remains satisfied with the group’s funding and liquidity 
position at 30 september 2013 the main sources of debt funding 
included 
• a total of £1120m bank revolving credit facilities which mature  
in june 2015 
• £185m of bonding and letter of credit facilities which mature  
in june 2015
•  £350m convertible bond due october 2014
• £400m convertible bond due april 2017
• £300m 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 and
• £275m of drawn finance lease obligations with repayments  
up to march 2023
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 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 
1 accounting policies
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 2012 except for the adoption of 
the amendment to ias 1 ‘presentation of financial statements on  
oci’ that is applicable for the year ended 30 september 2013 this 
amended standard has no significant impact on the consolidated 
results or financial position
the consolidated financial statements are presented in the group’s 
presentational currency of sterling rounded to the nearest million
a statement of compliance
the consolidated financial statements for the year ended 
30 september 2013 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 9 december 2013 
b basis of preparation
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 their fair value noncurrent 
assets held for sale are stated at the lower of their carrying amount 
and fair value less costs to sell 
i parent company
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 underlying measures of profits and losses
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 available for sale 
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 available for sale financial assets interest and taxation of joint 
ventures and associates and separately disclosed items included  
within the operating result
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 available  
for sale financial assets and separately disclosed items included within 
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strategic report
 
business and financial rev iew
 
directors’ report
 
fin an cial st atement s
 
shareholder information
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
iv t ransactions eliminated on consolidation
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 acquisition in stages
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 
through reserves
vi acquisition related expenses
acquisition related expenses comprise amortisation of business 
combination intangibles other acquisition related expenses and 
remuneration for postcombination services directly attributable 
acquisition costs are expensed in the consolidated income statement 
as incurred 
vii contingent consideration
contingent consideration is accounted for at fair value at 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 
viii n oncurrent assets held for sale
the group classifies noncurrent assets or disposal groups containing 
a noncurrent asset as held for sale if their carrying amount will be 
recovered principally through a sale transaction rather than through 
continuing use to be classified as held for sale the assets must be 
available for immediate sale in their present condition subject only 
to terms that are usual and customary for the sale of such assets 
and their sale must be highly probable sale is considered to be highly 
probable when management are committed to a plan to sell the assets 
and an active programme to locate a buyer and complete the plan has 
been initiated at a price that is reasonable in relation to their current 
fair value and there is an expectation that the sale will be completed 
within one year from the date of classification 
on initial classification as held for sale noncurrent assets and disposal 
groups are measured at the lower of previous carrying amount and fair 
value less costs to sell with any adjustments taken to profit or loss  
the same applies to gains and losses on subsequent remeasurement
any impairment loss on a disposal group is allocated first to goodwill 
and then to remaining applicable assets on a pro rata basis except  
no loss is allocated to inventories financial assets deferred tax assets 
or employee benefit assets which continue to be measured in 
accordance with the group’s accounting policies
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 
c basis of consolidation
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 subsidiaries
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 joint ventures and associates
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 as 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 oncontrolling interests
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
where the group has a written put option in respect of a non
controlling 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 
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notes to the consolidated financial statements
continued
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 1wiii describes the basis on which fair value is determined
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 1wiii describes the basis 
on which fair value is determined
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 financial liabilities
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 
1 accounting policies continued
certain assets and liabilities are excluded from the measurement basis 
of ifrs 5 including deferred tax assets ias 12 ‘income taxes’ assets 
arising from employee benefits ias 19 ‘employee benefits’ and 
financial assets within the scope of ias 39 ‘financial instruments 
recognition and measurement’ 
ix business combinations between entities under common 
control
the results of business combinations between entities under common 
control are incorporated as if the acquired entity had always been 
combined this is also known as ‘predecessor accounting’ where  
this applies all necessary comparatives for the prior year financial 
statements are restated to reflect the inclusion of results from the 
commencement of the earliest comparative period in accordance 
with ias 8 
d foreign currency
i foreign currency transactions
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 at the foreign exchange rate ruling at that 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
ii foreign operations
the assets and liabilities of foreign operations including goodwill 
and fair value adjustments arising on consolidation are translated to 
sterling at the foreign exchange rates ruling at the balance sheet date
the revenues and expenses of overseas operations are translated at 
rates approximating to the foreign exchange rates ruling at the dates of 
the transactions foreign exchange differences arising on retranslation 
have been recognised directly in equity in the translation reserve a 
designated foreign exchange reserve since 1 january 2007 
foreign exchange gains and losses arising from a monetary item 
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 et investment in foreign operations
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 instruments
i financial assets
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 
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iv share capital
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
f hedge accounting
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
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 
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
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 
iii derivative financial instruments
the group uses derivative financial instruments to hedge its exposure 
to foreign exchange 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 a hedging instrument 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
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continued
iii marketing and other direct sales costs
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 employee benefits
i defined contribution plans
obligations for contributions to defined contribution pension plans  
are recognised as an expense in the consolidated income statement  
as incurred
ii defined benefit plans
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 any unrecognised past service costs and the fair 
value of any plan assets is deducted in calculating the overall 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 on a straight line basis over the average period until 
the benefits become vested to the extent that the benefits vest 
immediately the expenseincome is recognised immediately in the 
consolidated income statement
all actuarial gains and losses are recognised in the period they occur 
through the consolidated statement of 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 any change in the present value of pension 
scheme liabilities relating to employee service in prior periods but 
arising in the current period as a result of benefit amendments is 
chargedcredited to operating expenses over the period during which 
such amendments vest
the expected return on the schemes’ assets and the increase during 
the period in the present value of the schemes’ liabilities arising from 
the passage of time are included in financial income and financial 
expenses respectively 
iii sharebased payment transactions
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 
employee becomes entitled to the awards
1 accounting policies continued
g revenue
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 recognition
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 inhouse product 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 client monies received in advance deferred 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 measurement of revenue
where the group acts as principal revenue is stated at the contractual 
value of goods and 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
iv aircraft lease income
operating lease rental income is recognised in operating income  
as earned on a straight line basis over the lease term 
h expenses
i operating lease payments
payments made under operating leases are recognised in the 
consolidated income statement on a straight line 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 finance lease payments
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
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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
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 earnings per share
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  investments
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
short term 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
o intangible assets
i goodwill
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
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
iv own shares held by the employee benefit trust 
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 short term benefits
short term 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 funds invested 
including available for sale financial assets dividend income gains 
on the disposal of available for sale financial assets and changes in the 
fair value of financial assets or liabilities at fair value through profit or 
loss interest income is recognised as it accrues in profit or loss using 
the effective interest method dividend income is recognised in profit 
or loss on the date the group’s right to receive payment is established 
which in the case of quoted securities is the exdividend date 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 taxation
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 current tax
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
ii deferred tax
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  
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notes to the consolidated financial statements
continued
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 property plant and equipment
i owned assets
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 use
where 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
ii l eased assets
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 depreciation
depreciation is charged to the consolidated income statement on a 
straight line 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
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
1 accounting policies continued
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 must be recorded within 12 months  
of the acquisition negative goodwill arising on an acquisition is 
recognised in the income statement upon acquisition
ii computer software software in development and other 
intangible assets
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 o r 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
separately acquired trademarks and licences are shown at historical 
cost licences and order books assets acquired in a business 
combination are recognised at fair value at the acquisition date as 
detailed in note 1 wii licences have a finite useful life and are 
carried at cost less accumulated amortisation 
iii brands and customer relationships
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 
iv amortisation
amortisation is charged to the consolidated income statement on a 
straight line 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
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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
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 pro rata 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
r inventories
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
s provisions
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 maintenance provision for leased aircraft
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
iv borrowing costs
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 sale and leaseback transactions
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 then 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 then 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 then 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 impairments
i financial assets
a financial asset is assessed at each reporting date to determine 
whether there is any objective evidence that it is impaired 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 
individually 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 any cumulative 
loss in respect of an available for sale financial asset previously 
recognised in equity is transferred to profit or loss an impairment  
loss is reversed if the reversal can be related objectively to an event 
occurring after the impairment loss was 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 nonfinancial assets
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  
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notes to the consolidated financial statements
continued
made in determining fair values is disclosed in the note specific to that 
asset or liability
i property plant and equipment
the fair value of property plant and equipment recognised as a result 
of a business combination is based on market values the market value 
of property is the estimated amount for which a property could be 
exchanged on the date of valuation between a willing buyer and a 
willing seller in an arm’s length transaction after proper marketing 
wherein the parties had each acted knowledgeably prudently and 
without compulsion the market value of items of plant equipment 
fixtures and fittings is based on the quoted market prices for similar 
items
ii intangible assets
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 external market values or incomebased methods 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
iii investments in equity and debt securities
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
iv trade and other receivables
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
v trade payables
trade payables are recognised at their fair value and subsequently 
recorded at amortised cost using the effective interest method
vi derivatives
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 
vii nonderivative financial liabilities
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
viii sharebased payments
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
1 accounting policies continued
ii restructuring provision
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 onerous contracts
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 
t  related parties
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 reporting
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 judgements
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 determination of fair 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 andor disclosure purposes based on the following 
methods when applicable further information about the assumptions 
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standard
effective date accounting 
periods commencing on or after
endorsed by the eu
ias 27 revised ‘separate financial statements’ 1 january 2014
ias 28 revised ‘investments in associates and 
joint ventures’ 1 january 2014
ifrs 10 ‘consolidated financial statements’ 1 january 2014
ifrs 11 ‘joint arrangements’ 1 january 2014
ifrs 12 ‘disclosure of interests in other entities’ 1 january 2014
not yet endorsed by the eu
amendment to ias 36 on recoverable amount 
disclosures for impairment of assets 1 january 2014
amendment to ias 39 on novation of 
derivatives and continuation of hedge 
accounting 1 january 2014
amendment to ifrs 10 11 and 12 on transition 
guidance 1 january 2014
amendments to ias 32 on financial 
instruments asset and liability offsetting 1 january 2014
ifric 21 ‘levies’ 1 january 2014
ifrs 9 ‘financial instruments’ to be announced
ifrs 10 ‘consolidated financial statements’ replaces all of the 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 this new standard is not expected 
to have a material impact on the group’s results but may affect the 
group’s accounting treatment for its nonconsolidated entities 
ifrs 11 ‘joint arrangements’ establishes principles for financial 
reporting by parties to a joint arrangement the ifrs supersedes 
ias 31 and sic13 and is concerned principally with both the structure 
of the arrangement and that an entity had a choice of accounting 
treatment for interests in jointly controlled entities the adoption 
of this new standard is not expected to have an impact on the 
group’s results 
ifrs 12 ‘disclosure of interests in other entities’ 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 amendment to ifrss 10 11 and 12 on transition guidance provides 
additional transitional relief in ifrss 10 11 and 12 limiting the 
requirement to provide adjusted comparative information to only the 
preceding comparative period the amendment also requires certain 
comparative disclosures under ifrs 12 upon transition
ias 27 revised ‘separate financial statements’ 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 ‘investments in associates and joint ventures’ 
includes the requirements for joint ventures as well as associates 
to be equity accounted following the issue of ifrs 11
x new standards and interpretations not yet adopted
the following standards are applicable to the group and will be applied 
to the accounting period beginning on 1 october 2013
• ias 19 revised 2011 ‘employee benefits’ the amendment 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 
will be calculated on the net defined benefit liability 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 and will increase the group’s employee 
benefit expense had the standard been applied in the current 
financial year the group’s profit before tax would have been £12m 
lower equating to a decrease in the statutory and underlying 
earnings per share of 11p 
• ifrs 13 ‘fair value measurement’ this standard aims to improve 
consistency and reduce complexity by providing a precise definition 
of fair value and a single source of fair value measurement and 
disclosure requirements for use across ifrss the requirements 
do not extend the use of fair value accounting but provide guidance 
on how it should be applied where its use is already required or 
permitted by other standards the impact on the group is expected 
to be mainly in relation to the fair values of assets and liabilities 
on acquisition of businesses and in fair valuing derivative financial 
instruments although these are not expected to materially alter 
the group’s results and balances 
• the iasb’s annual improvements project 2011 contains seven 
amendments affecting five standards which are all effective from 
1 january 2013 only the amendment to ias 16 ‘property plant 
and equipment’ is expected to have an impact on the group’s year 
end balances and disclosures although the impact on the group’s 
consolidated balance sheet is not expected to be material the 
previous wording of ias 16 indicated that servicing equipment 
should be classified as inventory even if it was used for more than 
one period the amendment clarifies that 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
• amendments to ifrs 1 ‘first time adoption on government grants’ 
and ‘exemption for severe hyperinflation and fixed dates for eu 
entities‘ these amendments are not expected to have an impact 
on the group’s results or balances
• amendments to ifrs 7 on financial instruments asset and liability 
offsetting the amendments to ifrs 7 on offsetting financial 
instruments and liabilities clarify some of the requirements for 
offsetting financial assets and financial liabilities on the balance 
sheet the amendments clarify that the right of setoff must be 
available today and not contingent on a future event it also must  
be legally enforceable for all counterparties in the normal course of 
business as well as in the event of default insolvency or bankruptcy 
this amendment is not expected to have an impact on the group’s 
results balances or disclosures
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 
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notes to the consolidated financial statements
continued
most these being in relation to the discount rate and earnings growth 
both within the long term plans and thereafter further details 
including sensitivity analysis are given in note 10 and the accounting 
policy is set out in note 1qii
defined benefit pension plans
a qualified independent actuary undertakes the estimation of the 
present value of the group’s obligations under defined benefit pension 
schemes using assumptions taken from a range of possible actuarial 
assumptions these assumptions may not be borne out in practice 
especially due to the long timescales involved in particular the 
valuation of scheme assets is based on the fair value at the balance 
sheet date as these assets are not intended to be sold in the 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
derivative financial instruments
judgement is required in the assessment of prospective effectiveness 
and specifically in the assessment of the probability of forecast 
transactions both at hedge inception and during the period over which 
hedge accounting is adopted the fair value of derivative financial 
instruments can also involve judgement where appropriate external 
valuations from financial institutions are undertaken to support the 
carrying value of such items details of sensitivity analysis are set out 
in note 26k
b judgements
entry into service of new aircraft and related accounting
this financial year saw the group incur costs to enable a new type of 
aircraft the boeing 787 dreamliner 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 
separately disclosed items
separately disclosed items are those significant items which in 
management’s judgement are highlighted by virtue of their size 
or incidence to enable a full understanding of the group’s financial 
performance such items are included within the income statement 
caption to which they relate note 4
revenue recognition
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 
business combinations
in the case of business combinations judgement and estimation is 
required in the identification and valuation of separable assets and 
liabilities on acquisitions in particular judgement and estimation is 
required in the identification and valuation of separable intangible 
assets including brands and customer databases and determining 
appropriate useful economic lives for these assets judgement and 
1 accounting policies continued
the revisions to ias 27 and ias 28 are not expected to have a 
significant impact on the group’s results 
the amendment to ias 36 in respect of recoverable amount 
disclosures for impairment of non financial assets is only expected 
to impact disclosures where a cash generating unit is assessed on 
the basis of fair value less costs to sell as opposed to value in use
ifrs 9 ‘financial instruments’ was reissued in 2010 and includes 
guidance on the classification and measurement of financial assets 
and financial liabilities and the derecognition of financial instruments 
the standard is being added to as the iasb endorses different 
phases of the project to replace ias 39 and its effective date is yet 
to be announced
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 key accounting estimates and judgements
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 directors have discussed with the audit committee  
the 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 estimates
intangible assets – goodwill carrying value
a full impairment review has been performed of all goodwill together 
with intangible and tangible balances 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 long term plans are challenged and 
considered by the group management board until achievable and 
realistic budgets are approved for example in the specialist  activity 
sector following the removal of the sector management team at the 
start of the financial year the outcome of the assessment of those 
businesses’ future profitability was considered to be less than that 
used in last year’s impairment review thereby causing impairments 
within that sector to total £109m in the french tour operating 
business there is significant and inherent uncertainty over the speed 
of recovery and therefore the timing of return to profitability due 
to the ongoing political unrest and violence in the north african 
destinations delaying the return to profitability and reducing the 
absolute levels of profits within a five year timescale relative to last 
year has led to a £59m impairment charge in the year
for the purpose of the group’s impairment testing we have then 
considered the key inputs that can impact discounted cash flows the 
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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 then used to combine certain of these operating 
segments into reported segments
the specialist  activity sector operates under six divisions 
adventure education marine north american specialist sport 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 the ukraine india  
and china and is considered to be one operating segment
reportable and reported segments
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 which meet 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 sectors 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 with 
the prior year‘s information being restated 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 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 g mb and represent the 
amounts purchased in the year
estimation is also required in determining the fair value of deferred  
tax assets and retirement benefits acquired as well as the contingent 
consideration payable in respect of each acquisition details of 
acquisitions are set out in note 13
liabilities
in accounting for provisions judgement is required in determining 
occurrence probability maturity and level of risk judgement and 
estimation is required in determining aircraft maintenance 
restructuring 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
taxation
the group has from time to time contingent tax liabilities arising  
from trading and corporate transactions in the uk and overseas 
jurisdictions after taking appropriate external advice the group 
makes provision for these liabilities based on the probable level of 
economic loss that may be incurred and which is reliably measurable 
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
recoverable amounts of deposits and prepayments
judgements have been made in respect of the volumes of future 
trading with hoteliers and the creditworthiness of those hoteliers in 
order to assess the recoverable amounts of deposits and prepayments 
made to those hoteliers 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
fair value measurements
management has to make judgements regarding the valuation of some 
financial instruments that use inputs that are not observable in active 
markets these are disclosed in note 26h 
3 segmental information
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 g mb is 
considered to be the chief operating decision maker for the purposes 
of ifrs 8
group structure
the group presents segmental information in respect of its sectors 
as disclosed in the group’s 2012 annual report  accounts with 
effect from 1 october 2012 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 corsair the nordic countries canada 
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notes to the consolidated financial statements
continued
3 segmental information continued
segmental analysis 
year ended 30 september 2013
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
total mainstream 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
total group 15706 655 15051 589
year ended 30 september 2012
sector
total revenue
restated 
£m
intersegmental 
revenue
restated 
£m
total external 
revenue
restated 
£m
underlying 
operating 
profitloss
restated 
£m
uk  ireland 3756 122 3634 197
germany 3932 15 3917 87
nordics 1085 1 1084 71
french tour operator 903 – 903 32
french airline 403 43 360 15
hotels 191 166 25 6
rest of mainstream 2469 74 2395 106
total mainstream 12739 421 12318 420
specialist  activity 1479 1 1478 48
accommodation  destinations 859 195 664 66
emerging markets – – – 15
all other segments and unallocated items – – – 29
total group 15077 617 14460 490
reconciliation of group underlying operating profit to profit before tax
note
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
group underlying operating profit 589 490 
separately disclosed items 4 24 92
acquisition related expenses 13a 65 62
impairment of goodwill 10 188 20
impairment of available for sale financial asset – 10
taxation on profits and interest of joint ventures and associates 12 15 5
operating profit 297 301 
net financial expenses 5 116 100
profit before tax 181 201 
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c apital expenditure
total depreciation of property  
plant and equipment and 
amortisation of intangible assets
sector
2013
£m
2012 
restated
£m
2013 
£m
2012
restated
£m
uk  ireland 244 231 83 79
germany 50 32 18 13
nordics 17 5 5 3
french tour operator 6 6 10 11 
french airline 74 70 24 15
hotels 9 9 15 14
rest of mainstream 80 14 22 15 
total mainstream 480 367 177 150
specialist  activity 34 43 35 39
accommodation  destinations 40 30 33 29
all other segments and unallocated items 8 19 3 1
total group 562 459 248 219
total depreciation of property plant and equipment and amortisation of intangible assets of £248m 2012 £219m comprises £91m 2012 
£92m of amortisation of intangible assets as shown in note 10 and £157m 2012 £127m of depreciation of property plant and equipment  
as shown in note 11 
reconciliation of capital expenditure to amounts included in the financial statements
note
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
total group capital expenditure as shown above 562 459
analysed as
additions to intangible assets 102 88
additions to property plant and equipment 460 371
562 459
reconciliation to the notes to the financial statements
additions to intangible assets in segmental analysis 102 88
additions to goodwill – 3
intangible assets total additions 10 102 91
additions to property plant and equipment in segmental analysis 460 371
property plant and equipment total additions 11 460 371
included within the £460m 2012 £371m total additions to property plant and equipment are £187m 2012 109m of additions to aircraft and 
equipment as disclosed in note 11
entity wide disclosures
the uk is the group’s country of domicile revenues from external customers and noncurrent assets are split geographically as follows
uk germany france other europe rest of the w orld total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
revenue from  
external customers 4700 4497 4161 3919 1101 1288 4253 3970 836 786 15051 14460
noncurrent assets 2833 2767 608 546 312 374 1138 1088 731 803 5622 5578
revenue is classified 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 
germany and france 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 
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notes to the consolidated financial statements
continued
4 separately disclosed items
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
restructuring and other separately disclosed items 59 102
aircraft and other assets 23 –
pension related credit 25 –
l itigation provisions 13 17
c hange in accounting estimates – 27
total 24 92
separately disclosed items within operating profit are included within the consolidated income statement as follows
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
revenue 1 –
c ost of sales 4 –
administrative expenses 19 92
total 24 92
restructuring and other separately disclosed items
the overall charge of £59m includes £54m of restructuring costs £29m of the restructuring costs arise in the mainstream business with £25m 
occurring in france from the ongoing restructure of the tour operator and the airline in particular a £19m charge has been taken in the final 
quarter of the year as a result of a voluntary redundancy programme being announced in the french tour operator to reduce overhead costs 
further given the difficult trading environment it is experiencing at present
there has been a total of £18m of restructuring costs incurred in the specialist  activity sector in the current financial year 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 w ithin the accommodation  destinations sector £7m of 
restructuring costs have arisen 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
in addition to these restructuring costs the most significant other item is a £4m charge due to the change in value of unhedged foreign currency 
derivative instruments relating to future seasons
included in the year ended 30 september 2012 were mainstream restructuring costs of £66m which principally related to the restructuring 
programmes in the french tour operator and airline being £66m in total the £5m restructure of the moroccan airline jet4you and offset by a 
£7m release of unused provision in the german tour operator in addition a total of £24m restructuring costs were incurred across the specialist 
 activity and accommodation  destinations sectors £8m of this total arose from restructuring actions taken in the adventure division £6m 
arose from the writedown of specific ski chalet assets £4m arose from actions taken in the marine division and £3m from the finalisation of 
restructuring programmes in greece morocco and tunisia a total of £12m of costs were incurred in group head office companies being primarily 
to support the various restructuring programmes around the group
aircraft and other assets
during the year ended 30 september 2013 a total credit of £18m has been recognised which arises from various aircraft transactions 
significantly this is the first year in which the group has incurred costs to enable a new type of aircraft the boeing 787 dreamliner to be brought 
into service as part of the funding of these costs the group is entitled to certain credits 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 the entry into service costs the associated 
credits and sale and leaseback profits have all been included in separately disclosed items due to the size and nature of the items and the 
imperfect matching between costs being incurred and credits being recognised in the income statement 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
in addition to the aircraft items a credit of £5m has been recognised from uplifting the value of the group’s total investment in the airline group 
limited to reflect the fair value agreed under the terms of the disposal agreement announced on 19 november 2013
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pension related credit 
in the netherlands the management and works council of tui nederland nv agreed to close the existing defined benefit pension scheme and 
replace it with a defined contribution scheme this change is classified as a curtailment under ias 19 and the resultant reduction in accrued 
pension liabilities of £14m has been recognised in the 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 has been approved by the dutch pension regulator and has now been accounted for generating a further credit in the income 
statement of £11m further details of these transactions are disclosed in note 6c 
l itigation provisions
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 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 note 8
in the year ended 30 september 2012 the group’s assessment of the likely outcome of the legal actions in which it was then involved resulted  
in a charge to the income statement of £17m
c hange in accounting estimates
during the year ended 30 september 2012 the group reviewed the estimates used in calculating aircraft maintenance provisions and empty leg 
provisions to ensure consistency of application of the latest estimates across the group this process resulted in a credit to the income statement 
of £27m which due to its size was included as a separately disclosed item
5 net financial expenses
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
financial income
bank interest receivable 19 15
interest on pension scheme assets note 6c  67 72
other financial income – 9
total 86 96
financial expenses
bank interest payable on loans and overdrafts 23 19
finance charges on convertible bond 63 62
interest on pension scheme liabilities note 6c  81 86
interest payable on shareholder loans – 2
finance lease charges and interest on debt financed aircraft 12 7
unwinding of discount on provisions note 22 5 8
facility fees 13 12
other financial expenses 5 –
total 202 196
net financial expenses 116 100
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notes to the consolidated financial statements
continued
6 employees
a average number of employees
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
year ended 
30 september 
2013 
n umber
year ended 
30 september 
2012 
number
by sector
mainstream 38381 38235
specialist  activity 6560 6773
accommodation  destinations 10029 8732
emerging markets 8 –
c orporate 428 350
total 55406 54090
b employee costs
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
w ages and salaries 1489 1412 
social security costs 252 252 
pension costs defined benefit pension scheme – curtailment and settlement disclosed in separately disclosed items 25 –
pension costs defined benefit pension scheme cost 40 26
pension costs defined contribution pension scheme cost 29 27 
sharebased payments note 6d 17 17 
total 1802 1734 
included within wages and salaries are £40m 2012 £35m of wages and salaries and £4m 2012 £16m of social security costs in relation to 
redundancy costs that are included within separately disclosed items in note 4 
c pension costs
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
defined contribution schemes for employees and directors 
c urrent contributions are recognised as an expense in the year and once paid the group has no further liability pension costs of £29m 2012 
£27m relating to defined contribution schemes were charged to the income statement
defined benefit pension schemes 
the movement of defined benefit pension obligations and assets is detailed below summarised as uk germany and other other includes funded 
schemes in ireland the netherlands up until the date of closure of this scheme switzerland and norway whilst the main unfunded arrangements 
are in austria and france almost all uk schemes are funded whilst german schemes are unfunded 
the funded schemes in the uk are closed to new members
the group has established a pension funding partnership arrangement pfp including tui travel amber scot l p sl p and tui travel amber 
ew ll p ll p together the partnerships the partnerships the main operating brands of the uk business namely thomson and first c hoice 
were transferred to the ll p and three pension schemes subscribed for interests in the ll p via the sl p  tui uk l imited pays a royalty to the ll p 
for the use of the brands the britannia airways l imited superannuation and l ife 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 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 group balance 
sheet the ias 19 deficit or income statement the investment held by the pension schemes does not meet the definition of a scheme asset 
under ias 19 and is therefore not included within the fair value of scheme assets disclosed in the group financial statements the recognition of 
the brand assets in the group 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 are now being held as security for the pfp see note 10 for more 
information 
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in september 2013 the c ompany and the trustees of the britannia airways l imited superannuation and l ife assurance scheme the tui 
pension scheme uk and the thomson airways pension scheme reached agreement on the 2012 scheme valuations and associated funding 
contributions as part of this settlement £30m was paid into an escrow account on behalf of the schemes ahead of year end this was a 
performance related payment in respect of the current year the level of payments in subsequent years is dependent on the rate of growth in 
underlying earnings following the completion of formal legal documentation the £30m was released from the escrow account to the schemes  
in october 2013 this amount is reported within prepayments at year end since it met neither the definition of scheme assets within ias 19 nor 
cash details of the current funding commitments of these three uk schemes are shown below excluding the performance related element 
which is not quantifiable in advance
scheme name
date of last full 
actuarial valuation average group contribution rate
average employee 
contribution rate
britannia airways l imited superannuation  
and l ife assurance scheme 31 march 2012 140 plus £335m per annum deficit contribution and £122m pfp income 100
tui pension scheme uk 31 march 2012 115 plus £137m per annum deficit contribution and £42m pfp income 72
thomson airways pension scheme 31 march 2012 198 plus £30m per annum deficit contribution plus £05m pfp income 146
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
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’ hapagl loyd fluggesellschaft gmbh open to new members
versorgungsordnung’ tui deutschland gmbh c losed to new members
versorgungsordnung’ tui l eisure travel gmbh c losed to new members
within other territories tui nederland nv and the works council agreed to close the existing defined benefit pension scheme and replace it with 
a defined contribution scheme this change is classified as a curtailment under ias 19 and the resultant reduction in accrued pension liabilities of 
£14m has been recognised in the consolidated income statement in the year 
the management of tui nederland nv and the pension scheme trustees have 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 the agreement 
was contingent on approval by the dutch pension regulator which was received in april 2013 this transfer of the pension assets and liabilities 
generated a further credit in the income statement of £11m which is accounted for as a settlement gain under ias 19 the gains on curtailment 
and settlement are recognised within administrative expenses in the consolidated income statement
valuations of the schemes are made by qualified actuaries using market based valuations for the assets and the projected unit method for 
the liabilities the group recognises all actuarial gains or losses in the consolidated statement of comprehensive income
the assets of each scheme have been taken at market value and liabilities in each territory have been calculated using the following principal 
assumptions
uk
1
 per annum germany per annum other
3
 per annum
2013 

2012 

2013 

2012 

2013 

2012 

rpi inflation 33 27 13 26 12 22
pensionable salary inflation
2
27 25
2
25 25 24 27
discount rate 44 45 35 33 27 30
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 uk pensionable salary increase is capped at 25 for all employees earning over £31519 
3 the assumptions for other are a weighted average
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notes to the consolidated financial statements
continued
6 employees continued
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 life expectancy weighted average
2013  
years
2012  
years
males
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 231 226
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 245 239
females
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 255 245
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 270 261
germany life expectancy
2013  
years
2012  
years
males
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 188 186
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 214 213
females
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 228 227
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 254 253
other life expectancy weighted average
2013  
years
2012  
years
males
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 207 216
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 230 227
females
l ife expectancy in years for a pensioner retiring aged 65 on the balance sheet date 232 238
l ife expectancy in years for a pensioner retiring aged 65 20 years after the balance sheet date 256 249
the fair value of assets of the schemes in each territory are set out below
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
equities 526 483 – – 2 1 528 484
government debt 233 241 – – – 101 233 342
c orporate bonds 253 222 – – – – 253 222
property 75 70 – – – – 75 70
c ash and cash equivalents 4 6 – – – 9 4 15
other 181 174 – – 48 36 229 210
total 1272 1196 – – 50 147 1322 1343
the expected rates of return on each category of assets in each territory are as follows
uk germany other
2013 

2012 

2013 

2012 

2013 

2012 

equities 78 71 na na 70 70
government debt 34 26 na na na 26
c orporate bonds 44 45 na na na 33
property 69 61 na na na 50
c ash and cash equivalents 05 05 na na na 05
other 70 62 na na 46 20
overall expected rate of return 61 55 na na 46 24
the overall expected rate of return is calculated by weighting the individual rates in accordance with the anticipated balance in the schemes’ 
investment portfolio the fair values of the schemes’ assets are not intended to be realised in the short term and may be subject to significant 
change before they are realised
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c hanges in the fair value of scheme assets in each territory are as follows
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
balance at beginning of year 1196 1077 – – 147 145 1343 1222 
expected return on scheme 
assets 65 67 – – 2 5 67 72 
c ompany contributions 55 56 – – 7 4 62 60 
member contributions – – – – 1 2 1 2 
benefits paid 79 71 – – 2 7 81 78
assets distributed on 
settlement – – – – 107 – 107 –
experience gainslosses 35 67 – – 2 9 33 76
foreign exchange – – – – 4 11 4 11 
balance at end of year 1272 1196 – – 50 147 1322 1343 
actual return on scheme 
assets 100 134 – – – 14 100 148
employer contributions in the following year are expected to be £116m in respect of the uk and £2m in respect of other the uk value includes 
£17m in respect of income distribution from the pfp and £30m paid into escrow prior to the year end and classified as a prepayment at the year 
end
the composition of the fair value of scheme assets in each territory is as follows
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
schemes with surplus  
of assets 2 – – – 11 9 13 9
schemes with deficit  
of assets 1270 1196 – – 39 138 1309 1334
total 1272 1196 – – 50 147 1322 1343
changes in the present value of defined benefit obligations in each territory are as follows
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
balance at beginning of year 1624 1436 168 129 199 171 1991 1736 
c urrent service cost 17 14 12 7 6 6 35 27 
past service cost – – 5 – – – 5 –
interest cost on obligation 72 74 6 6 3 6 81 86 
benefits paid 79 71 3 2 4 9 86 82
member contributions – – – – 1 2 1 2 
curtailmentsettlement – – – – 132 1 132 1
actuarial lossesgains 71 171 13 41 2 36 56 248 
amounts arising from 
business combinations – – 16 – – – 16 –
reclassification – – – – – 1 – 1 
foreign exchange – – 10 13 6 13 16 26 
balance at end of year 1705 1624 201 168 77 199 1983 1991 
the amounts recognised in the consolidated income statement for the years ended 30 september 2013 and 30 september 2012 for each territory 
are as follows
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
c urrent service cost 17 14 12 7 6 6 35 27
past service cost – 5 – – – 5 –
curtailmentsettlement – – – – 25 1 25 1
interest on defined benefit  
pension scheme obligation 72 74 6 6 3 6 81 86
expected return on defined  
benefit pension scheme 65 67 – – 2 5 67 72
total 24 21 23 13 18 6 29 40
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continued
6 employees continued 
these amounts are included within the following expenseincome categories in the consolidated income statement
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
c ost of sales 7 6 16 6 4 4 27 16
administrative expenses 10 8 1 1 23 1 12 10
financial expenses 72 74 6 6 3 6 81 86
financial income 65 67 – – 2 5 67 72
total 24 21 23 13 18 6 29 40
the £25m gain arising on curtailment and settlement of the tui nederland scheme is included within the administrative expenses of other 
schemes
the amounts included within equity for the years ended 30 september 2013 and 30 september 2012 for each territory are as follows
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
c umulative losses 
brought forward 656 552 51 13 55 31 762 596 
lossesgains recognised 
during the year 36 104 13 41 – 27 23 172 
reclassification to profit and 
loss reserve – – – – 48 – 48 –
amounts arising from 
business combinations – – 7 – – – 7 –
foreign exchange – – 2 3 2 3 4 6
c umulative losses 
carried forward 692 656 47 51 9 55 748 762
following the closure of the tui nederland scheme £48m has been transferred from the group’s ias 19 reserve to profit and loss reserve both  
of which are included within the group’s accumulated losses
trend analysis information in respect of the uk germany and other territories is as follows  
uk
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
present value of scheme liabilities 1705 1624 1436 1422 1327
fair value of scheme assets 1272 1196 1077 1073 942 
deficit 433 428 359 349 385
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
experience gainloss on scheme liabilities 34 2 22 3 23 
c hange in actuarial assumption loss 105 169 22 51 249 
total actuarial loss on scheme liabilities 71 171 44 54 272
experience gainloss on scheme assets 35 67 54 39 37
total actuarial loss 36 104 98 15 235
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germany
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
present value of scheme liabilities 201 168 129 117 97
fair value of scheme assets – – – – – 
deficit 201 168 129 117 97
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
experience gainloss on scheme liabilities 4 1 – 3 3 
change in actuarial assumption gainloss 9 40 6 19 16 
total actuarial gainloss on scheme liabilities 13 41 6 16 13
experience gain on scheme assets – – – – – 
total actuarial gainloss 13 41 6 16 13 
other
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
present value of scheme liabilities 77 199 171 170 156
fair value of scheme assets 50 147 145 142 137 
deficit 27 52 26 28 19
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
experience gainloss on scheme liabilities 1 4 1 2 1
change in actuarial assumption gainloss 1 32 12 13 21
total actuarial gainloss on scheme liabilities 2 36 11 11 20
experience lossgain on scheme assets 2 9 8 – 3
total actuarial lossgain – 27 3 11 23
total
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
present value of scheme liabilities 1983 1991 1736 1709 1580
fair value of scheme assets 1322 1343 1222 1215 1079
deficit 661 648 514 494 501
total
2013 
£m
2012 
£m
2011 
£m
2010 
£m
2009 
£m
experience gainloss on scheme liabilities 39 7 23 2 19
c hange in actuarial assumption loss 95 241 4 83 286
total actuarial loss on scheme liabilities 56 248 27 81 305
experience gainloss on scheme assets 33 76 62 39 34
total actuarial loss recognised in other comprehensive income 23 172 89 42 271
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notes to the consolidated financial statements
continued
6 employees continued
reconciliation of defined benefit obligations and scheme assets to values recognised in the balance sheet
uk germany other total
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
present value of unfunded  
defined benefit obligations 1 1 201 168 18 17 220 186 
present value of funded  
defined benefit obligations 1704 1623 – – 59 182 1763 1805 
fair value of scheme assets 1272 1196 – – 50 147 1322 1343
recognised liability for  
defined benefit obligation 433 428 201 168 27 52 661 648 
analysed as
retirement benefit  
current liabilities – – 3 2 – – 3 2 
retirement benefit  
noncurrent liabilities 433 428 198 166 27 52 658 646 
total 433 428 201 168 27 52 661 648 
the sensitivity of the fair value of the defined pension deficit to the key financial and demographic assumptions is illustrated below
uk 
2013 
£m
germany 
2013 
£m
other 
2013 
£m
total 
2013 
£m
decrease to deficit of increasing discount rate by 025 77 9 1 87
increase to deficit of reducing discount rate by 025 82 10 2 94
increase to deficit of increasing all life expectancies by 1 year 56 4 1 61
d share award schemes
the c ompany 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 l ongterm 
incentive scheme dabl is all shares under these schemes involve both service and performance conditions and are awarded at nil cost to 
participants
the dabl is scheme is described below and the other two schemes are described in the remuneration report along with the relevant vesting 
criteria
at 30 september 2013 the shares allocated and outstanding in respect of ordinary shares were as follows
share award scheme
n umber of shares
2013
number of shares
2012 date due to vestdate vested
performance share plan – 1864433 4 december 2012
– 695082 19 march 2013
1851300 1988854 6 december 2013
3042857 3234113 7 december 2014
193242 193242 1 june 2015
1851734 – 6 december 2015
deferred annual bonus scheme – 3148956 4 december 2012
3535905 3825685 6 december 2013
5200660 5376936 7 december 2014
3604844 – 6 december 2015
deferred annual bonus l ongterm incentive scheme – 1924199 4 december 2012
2032726 2131122 6 december 2013
3601638 3866944 7 december 2014
2211179 – 6 december 2015
total 27126085 28249566
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the number of share awards at the beginning and end of the year is as follows
n umber of awards 
30 september 
2013
number of awards 
30 september 
2012
outstanding at the beginning of the year – excluding deferred shares 28249566 26346949
forfeited during the year 3846931 4784495
reclassified as share appreciation rights – 219552
exercised during the year 5076118 5882575
granted during the year 7799568 12789239
outstanding at the end of the year – excluding deferred shares 27126085 28249566
in addition to the above shares there are 3118873 2012 2491300 deferred shares outstanding in relation to the deferred annual bonus 
scheme these are due to vest between 6 december 2013 and 6 december 2015
in respect of the deferred annual bonus l ongterm incentive scheme there are an additional 4465568 2012 4406287 deferred shares 
these are due to vest between 6 december 2013 and 6 december 2015 
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 c arlo simulation was used the principal assumptions required  
by these methodologies were 
2013 2012
information relating to fair values of shares awarded
fair value at measurement date £145£245 £085£146
share price £284 £166
expected volatility 355 361
award life 3 years 3 years
expected dividends 494 447
risk free interest rate 042 054
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 shares were awarded under a service condition
employee expenses for the year
employee expenses for the current and prior year relating to sharebased schemes are
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
equitysettled 15 16
expense arising for share appreciation rights 2 1
total 17 17
share appreciation rights
c ertain participants other than board directors are eligible to receive their awards on a cash settled basis the calculation of which exactly 
replicates the formal sharebased scheme 
deferred annual bonus l ongterm incentive scheme
the deferred annual bonus l ongterm incentive scheme dabl is 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 long term 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
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notes to the consolidated financial statements
continued
6 employees continued
a chievement of aggregate ebita target proportion of award that vests
at or below 75 0
between 75 and 100 on a straight line 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
average annual eps growth in excess of rpi growth proportion of award that vests
below 4 0
between 4 and 13 on a straight line basis between 10 and 100
13 or above 100
• in respect of awards made prior to 30 september 2011 up to one quarter of the matching shares will vest based on the group’s ranking of total 
shareholder return tsr performance relative to companies ranked 30th to 100th by market capitalisation on the l ondon stock exchange as 
at the date of the award as shown in the table below
tsr ranking proportion of award that vests
below median 0
between median and upper quartile on a straight line basis between 15 and 100
at or above upper quartile 100
in respect of awards made after 1 october 2011 up to one quarter of the matching shares will vest based on the group’s 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 l ingus group 9 finnair 17 pierre  vacances
2 air berlin 10 firstgroup 18 pricelinecom
3 air francekl m 11 flight c entre 19 royal c aribbean c ruises
4 carnival 12 hertz global holdings 20 ryanair holdings
5 c lub mediterranee 13 international c onsolidated airlines group 21 stagecoach group
6 deutsche l ufthansa 14 kuoni reisen holding 22 thomas c ook group
7 easyjet 15 national express group 23 wotifcom holdings
8 expedia 16 norwegian air shuttle
 
tui travel’s tsr performance proportion of award that vests
below index 0
between index and index 8 per annum inclusive on a straight line basis between 15 and 100
exceeding index 8 per annum 100
matching share awards lapse if the performance conditions are not met
e remuneration of directors
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
emoluments 7 7
pensions and other retirement benefits 1 1
total 8 8
further information is provided in the audited section of the remuneration report
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direc tors’ report
 
financ ial statemen ts
 
sharehol der information
7 income expenses and auditors’ remuneration
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
included within operating profit in the consolidated income statement for the year are the following creditscharges
operating lease income aircraft 40 47
operating lease income land and buildings 2 2
operating lease rentals land and buildings aircraft and other equipment 604 619 
depreciation of property plant and equipment 157 127 
amortisation of intangible assets business combination intangibles 57 59 
amortisation of intangible assets other intangibles 34 33 
c harge for sharebased payments 17 17 
profit on sale of property plant and equipment 10 9 
profitloss on foreign currency retranslation 19 14 
impairment of goodwill and other intangibles 199 30 
impairment of property plant and equipment 3 12 
operating lease rental costs include £nil 2012 £10m of costs included in separately disclosed items note 4 as provisions for onerous leases 
primarily related to vacated properties in addition to the operating lease rentals disclosed above charges of £102m 2012 £186m 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 operational efficiency up to 15 aircraft are leased to other airline companies at fixed rates in addition up to 13 aircraft 
are leased to the sunwing travel group sunwing an associate of the group the aircraft leased to sunwing are winter only leases and are at 
market rates the expected income from future minimum lease payments under noncancellable operating leases is as follows
minimum lease payments under noncancellable operating leases expiring
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
w ithin one year 32 38
between one and five years 49 64
later than five years 23 30
total 104 132
services provided by the c ompany’s auditors and its associates
during the year the group including its overseas subsidiaries obtained the following services from the c ompany’s auditor and its associates
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£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 c ompany‘s auditors and its associates for other services
audit of the c ompany’s subsidiaries pursuant to legislation 5 4
auditors‘ remuneration for audit services 6 5
other services provided to comply with legislation 1 1
audit and audit related services 7 6
all other services 2 2
 relate principally to the interim review and airline regulatory returns
fees charged to the consolidated income statement in 2013 in respect of all other services totalling £2m includes £850000 for their work on 
the c lass 1 shareholder circular in respect of aircraft orders with boeing £420000 in respect of the implementation of the c oso framework  
in the german businesses and £266000 of tax advice in respect of expatriates
fees charged to the consolidated income statement in 2012 in respect of all other services totalling £2m included £573000 in respect of  
it consultancy £287000 in respect of the implementation of the c oso framework and £220000 of tax advice in respect of expatriates
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notes to the consolidated financial statements
continued
8 taxation
the tax charge can be summarised as follows
i analysis of charge in the year
note
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
c urrent tax charge 
uk corporation tax on profit for the year 6 – 
nonuk tax on profitloss for the year 92 70 
adjustments in respect of previous years 45 42
143 28 
deferred tax chargecredit 
origination and reversal of temporary differences
c urrent year uk 9 21
c urrent year nonuk 7 9
c hanges in tax rates 4 11 
adjustments in respect of previous years 45 5
14 25 36
total income tax charge in consolidated income statement 118 64 
following the annual review of the local tax positions in a number of the group’s major operating jurisdictions during the year certain tax balances 
have been adjusted to reflect the position of the latest local statutory accounts and tax returns these adjustments in respect of prior years have 
been reflected in the current year income statement tax charge
ii reconciliation of effective tax rate
the total tax charge 2012 charge for the year is higher 2012 higher than the standard rate of corporation tax in the uk of 235 2012 25 
the differences are explained below
year ended 
30 september 2013
year ended 
30 september 2012
£m  £m 
profit before tax reported in the consolidated income statement 181 201 
less share of profit in joint ventures and associates note 12 17 5
164 196 
income tax on profit before tax excluding share of profit of joint ventures  
and associates at the standard rate of uk tax of 235 2012 25 39 24 49 25 
expenses not deductible for tax purposes 51 31 23 12 
income not taxable 10 6 10 5
tax losses not recognised as an asset 33 20 38 19 
utilisation of tax losses not previously recognised 7 4 4 2
higher tax rates on overseas earningslosses 8 5 3 2
c hanges in tax rates 4 2 12 6 
adjustments to taxation in respect of previous years – – 47 24
total income tax charge in consolidated income statement 118 72 64 33 
the underlying effective rate of taxation for the year ended 30 september 2013 is calculated based on the underlying profit before tax 
excluding separately disclosed items acquisition related expenses and impairment charges and is calculated at 27 the actual tax rate of  
72 differs from the underlying effective tax rate primarily due to the tax effect of the nonrecognition of tax losses in france and goodwill 
impairment charges of £188m on which no tax deduction is available
iii deferred tax recognised outside of the consolidated income statement
the following taxation creditcharge has been recognised outside of the consolidated income statement 
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
tax relating to components of other comprehensive income
cash flow hedges 22 15
defined benefit pension plans 11 32 
total tax credited to other comprehensive income 11 47
tax credited directly to equity
c onvertible bonds 3 3
total 14 50
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direc tors’ report
 
financ ial statemen ts
 
sharehol der information
iv factors affecting future tax charge
a at the balance sheet date the finance act 2013 had been enacted confirming that the main uk corporation tax rate will reduce to 21 with 
effect from 1 april 2014 and 20 from 1 april 2015 therefore at 30 september 2013 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 
c ompany’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 the group continues to disagree with this interpretation it is possible that the  
issue will have to be litigated through the german tax courts and it could take a considerable amount of time to bring it 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 previous six 
years 2012 five years could be up to a total of approximately £80m 2012 £64m 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
in the group’s financial statements for 2010 2011 and 2012 it was disclosed that the spanish tax authorities were contesting the spanish 
corporate income tax treatment of two transactions undertaken by two of the group’s spanish subsidiary companies during the period 2002 to 
2006 throughout the tax audit process the group has engaged fully and openly with the spanish tax authorities and has supplied considerable 
documentary support and spanish technical tax analysis to explain the commercial and economic rationale and spanish corporate income tax 
treatment for the transactions these transactions were implemented after the group had taken specialist external advice
on 11 october 2013 agreement was reached on the terms of a settlement with the spanish tax authorities the total of tax interest and penalties 
is €50m the disputed tax of €30m has been lodged with the authorities in earlier financial years whilst the case was progressing meaning that 
the settlement involves a further payment of interest and penalties totalling €20m the tax €30m and interest €5m amounts have been 
provided in previous years within tax charges and financial expenses respectively whilst the penalties of €15m £13m have been accrued within 
administrative expenses in the year ended 30 september 2013 and included within separately disclosed items note 4
9 dividends
the following dividends which relate to the c ompany’s ordinary shares have been deducted from equity in the year
pence  
per share
year ended 
30 september 
2013 
£m
year ended 
30 september 
2012 
£m
dividends relating to the year ended 30 september 2011
interim dividend paid october 2011 33 – 36
final dividend paid april 2012 80 – 89
113 – 125
dividends relating to the year ended 30 september 2012
interim dividend paid october 2012 34 38 –
final dividend paid april 2013 83 92 –
117 130 –
the interim dividend in respect of the year ended 30 september 2013 of 375p per share was paid on 4 october 2013 and this dividend of £42m 
will be recognised as a deduction from equity in the year ending 30 september 2014
subsequent to the balance sheet date the directors have proposed a final dividend of 975p per share 2012 final dividend of 83p per share 
payable on 9 april 2014 to the holders of relevant shares on the register at 7 march 2014 the final proposed dividend amounts to £108m and will 
after approval by shareholders be recognised in the consolidated financial statements for the year ending 30 september 2014 the final ordinary 
dividend of 975p per share together with the interim dividend of 375p per share makes a total dividend of 135p per share relating to  
the year ended 30 september 2013 
a dividend reinvestment plan is in operation those shareholders who have not elected to participate in this plan and who would like to participate 
with respect to the 2013 final dividend may do so by contacting equiniti directly on 0871 384 2030 or via the overseas helpline on 44 121 415 
7047 the last day for election for the final proposed dividend is 19 march 2014 and any requests should be made in good time ahead of that date
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notes to the consolidated financial statements
continued
10 intangible assets
goodwill
£m
brands
£m
customer
relationships
£m
computer
software
£m
licences
£m
software in
development
£m
other
£m
total
£m
cost
at 1 october 2011 4549 459 205 449 37 30 168 5897 
additions 3 – 1 40 – 43 4 91 
acquisition through  
business combinations 8 7 – 1 – – – 16 
disposals 1 – – 29 1 – – 31
reclassification to assets  
held for sale – – – – 8 – – 8 
foreign exchange 147 11 11 13 1 1 2 186
reclassification of asset class 1 – – 11 1 10 1 – 
at 30 september 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
accumulated amortisation  
and impairment losses 
at 1 october 2011 646 109 61 336 16 5 82 1255
amortisation for the year – 27 14 40 2 – 9 92
impairment loss 20 2 – – 8 – – 30
reclassification to assets  
held for sale – – – – 7 – – 7 
disposals – – – 28 – – – 28
foreign exchange 29 3 3 7 1 1 1 45
at 30 september 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
net book value
at 1 october 2011 3903 350 144 113 21 25 86 4642 
at 30 september 2012 3776 320 123 118 8 58 79 4482 
at 30 september 2013 3666 298 117 145 7 82 69 4384
additions to computer software and software in development totalling £101m includes costs relating to major it development projects across  
all sectors within the group including the implementation of sap across certain mainstream sectors and the development of digital solution 
platforms for our customers
goodwill impairment charges are discussed below a £2m impairment charge to brands has been recognised in the year following the decision  
to close one small business within the uk  ireland a £9m impairment charge to computer software and software in development has been 
recognised following a decision to streamline certain it infrastructure projects and reservation systems within the group in light of the group’s  
it projects mentioned above the impairment charge to computer software and software in development is included within cost of sales
disposals of computer software during the year with a net value of £4m follows an extensive verification exercise undertaken by the group  
to write out of the books fully depreciated and unutilised software assets in preparation for the group’s major it development projects 
amortisation of intangible assets is recognised within cost of sales in the consolidated income statement amortisation of business combination 
and other intangibles combined with depreciation of property plant and equipment is disclosed by segment in note 3
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str ategic re por t
 
business and financial rev iew
 
dire ctor s’ re por t
 
financial st ateme nts
 
sh areh older infor mation
in 2011 the group 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 group 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 £94m 2012 £101m 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
2013 
£m
2012 
£m
2013 
£m
2012 
£m
2013 
£m
2012 
£m
first choice brand 94 101 – – – –
marmara brand 27 27 – – – –
accommodation w holesaler customer relationships – – 66 70 – –
landing slots – – – – 28 30
121 128 66 70 28 30
the first choice and marmara brands are major brands of the uk  ireland and french businesses respectively and have a remaining 
amortisation period of 14 years 2012 15 years the customer relationships within the accommodation  destinations accommodation 
w holesaler sector are in respect of commercial contractual relationships with travel agents and have a remaining amortisation period of 9 years 
2012 10 years the landing slots are in respect of the uk  ireland business for airports in the uk and have a remaining amortisation period  
of 14 years 2012 15 years 
goodwill impairment testing
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 39 2012 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 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 cgu specific and central contingencies in the five year plan being 
allocated to 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
an analysis of the aggregate and material carrying amounts of goodwill allocated to each principal cgu together with the growth rates being 
applied to cash flows beyond the plan period and the pretax discount rates used for each cgu or group of similar cgus is as follows
goodwill
growth rate applied to 
cash flows after five year plan pretax discount rate used
sector cgu
30 s eptember
2013
£m
30 september
2012
£m
30 s eptember 
2013

30 september 
2012

30 s eptember
2013

30 september
2012

mainstream uk  ireland 1490 1490 245 23 10 10
mainstream germany 407 364 14 15 11 11
accommodation  destinations accommodation w holesaler 385 354 20 20 11 12
mainstream nordics 271 268 22 225 11 11
accommodation  destinations accommodation ota 239 232 343 315 10 10
mainstream france 137 180 175 18 10 11
specialist  activity adventure 129 131 278 325 11 11
specialist  activity marine 73 105 21 21 10 11
all sectors multiple cgus 535 652 1039 1039 1014 1014
t otal goodwill 3666 3776
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
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notes to the consolidated financial statements
continued
10 intangible assets continued
goodwill impairment charges
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 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 the total impairment loss recognised in the year of £188m is equal 
to the difference between the net book values and the recoverable amounts and is analysed as follows
goodwill 
impairment 
charge
p r e  t a x 
discount rate
pretax 
discount rate
long term 
growth rate
long term 
growth rate
sector  ifr s 8 reportable segment cgu
2013
£m
2013

2012

2013

2012

mainstream – france france 59 10 11 175 18
specialist  activity marine 39 10 11 21 213
specialist  activity sport 26 10 11 273 28
specialist  activity
experience 
education 22 10 11 22 22
specialist  activity
north american 
education 22 11 11 22 22
mainstream – southern europe italy 9 10 11 10 10
mainstream – southern europe spain 1 14 13 18 19
goodwill impairment charge arising from the annual impairment test 178
goodwill impairment charge recognised on closure of businesses 10
t otal goodwill impairment charges recognised in the year 188
all of the impairment charges arising from the group’s annual impairment test which total £178m have arisen as a result of a deterioration in 
forecast trading results within the five year plans relative to the prior year 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 arise since the cash flow model based on the current five year plan did not support the carrying amount  
of goodwill for these cgus 
a further £10m goodwill impairment was recognised in the first half of the financial year in respect of two small businesses within the specialist  
 activity sector that were identified as noncore to the group which are in the process of being closed thereby providing an indication that the 
goodwill attached to those businesses is no longer supportable as such the goodwill relating to these businesses has been fully impaired
all cgus for which an impairment charge has been recognised are tour operating businesses the cgus within the mainstream sector represent 
the source geographical markets the sport cgu within specialist  activity sector specialises in the sports tour market for spectator and 
corporate clients whilst the two education cgus offer specially designed travel packages for schools and universities including educational tours 
student ski trips adventure holidays and language courses in 2012 the education division was considered to be one cgu incorporating both 
experience education and north american education during the current year the uk based experience education businesses have been 
separated from the north american education businesses following a restructure in the operational management and separation of the dayto
day running and internal reporting of these businesses as from 1 october 2012 as such these businesses are considered to be two separate cgus 
and their assets have been tested on this basis
s ensitivity analysis for goodwill
the calculation of recoverable amount is particularly sensitive to forecast future earnings the discount rate and the long term 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 long term percentage growth rate beyond the five year plan to nil as being reasonably possible changes
impairment or further impairment charge arising 
from a reasonably possible change in assumption
cgu
goodwill
£m
increase in
wacc of 05
£m
r eduction in 
underlying
earnings of 5
£m
r eduction in
the long term
percentage
growth rate to nil
£m
france 137 8 16 19
marine 73 17 18 45
experience education 49 6 17 16
north america education 37 4 7 12
adventure 129 – – 14
sport 15 2 5 8
accommodation ota 239 30 25 113
r ussia 53 2 4 8
732 69 92 235
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in respect of accommodation ota the recoverable amount equals the carrying amount and therefore any change to an assumption used in  
the test will cause an impairment for the r ussian cgu the recoverable amount would equal the carrying amount if independently the wacc 
increases by 025 underlying earnings fall by 1 or the long term growth rate used falls from 375 to 345 for adventure a reduction  
in the long term growth rate from 278 to 1 would cause the recoverable amount to equal the carrying amount 
the values for all other cgus in the table above represent additional impairment charges that would be incurred following a reasonably possible 
change in an assumption as the goodwill in these cgus has already been impaired as such for these cgus the remaining carrying amount equals 
the recoverable amount
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 
11 property plant and equipment
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
cost
at 1 october 2011 384 419 729 170 195 484 2381
foreign exchange 18 4 33 8 3 20 86
acquisitions through business combinations – – – – – 3 3 
transfers from inventory – 8 – – – 2 10 
additions 12 32 109 133 10 75 371 
disposals 34 20 96 80 12 29 271
reclassifications 16 1 9 – 2 26 – 
transferred to assets held for sale 2 1 31 – 5 3 42
at 30 september 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 s eptember 2013 306 449 810 186 84 395 2230
accumulated depreciation and impairment
at 1 october 2011 199 152 531 – 168 330 1380
foreign exchange 9 2 23 – 3 12 49
provided in the year 16 21 43 – 12 35 127
disposals 28 11 94 – 12 21 166 
impairments 1 – 6 – – 5 12
reclassifications 10 – – – 1 11 – 
transferred to assets held for sale 2 – 26 – 3 3 34 
at 30 september 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 s eptember 2013 140 174 399 – 58 221 992
net book value
at 1 october 2011 185 267 198 170 27 154 1001 
at 30 september 2012 171 273 250 215 24 163 1096 
at 30 s eptember 2013 166 275 411 186 26 174 1238
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tt 14  ar 2013  13122013  artwork
notes to the consolidated financial statements
continued
11 property plant and equipment continued
impairment charges
of the £3m impairment charge in the year ended 30 september 2013 £1m relates to the impairment of an aircraft engine owned within the 
belgium operating segment £1m relates to the impairment of an aircraft engine owned within the uk  ireland operating segment and £1m 
relates to the impairment of buildings owned within the uk  ireland operating segment the impairment charges are included within cost of 
sales
of the £12m impairment charge in the year ended 30 september 2012 £6m related to the impairment of one aircraft owned within the uk  
 ireland operating segment £5m related to the impairment of motor vehicles within the specialist  activity sector and £1m related to the 
impairment of office leasehold improvements within the french tour operating segment 
additions to aircraft and equipment
additions of £187m 2012 £109m to aircraft and equipment relate to five aircraft 2012 three aircraft purchased during the year including  
four aircraft 2012 three aircraft purchased on finance leases as well as fleet improvements and capitalised maintenance on owned aircraft
advance payments for future delivery of aircraft
additions of £140m 2012 £133m to advance payments for future delivery of aircraft were due to payments made for the future delivery  
of 76 aircraft 2012 16 aircraft and interest of £8m 2012 £9m that has been capitalised during the year at a rate of 54 2012 54 
the disposal of £136m 2012 £80m from advance payments for future delivery of aircraft arises from the delivery and then sale and leaseback  
of 13 aircraft 2012 eight aircraft
during the year advance payments for future delivery of aircraft with a value of £8m were transferred to assets held for sale prior to their 
subsequent disposal 
disposals
in addition to the disposal of £136m advance payments for future delivery of aircraft other major disposals in the year consisted of £18m of net 
book value of aircraft of which the most significant element was two 747s operated by corsair that were disposed of during the year and £14m of 
disposals of other equipment of which the most significant element related to buyer furnished equipment on aircraft that were delivered and then 
subject to sale and operating lease back 
significant cost and accumulated depreciation across all property plant and equipment categories were also disposed of during the year with little 
impact on net book value due to an exercise performed by the uk  ireland operating segment to identify and retire unutilised assets most of 
which were already fully depreciated
other disclosures
other equipment with a combined net book value as at 30 september 2013 of £174m 2012 £163m includes £94m 2012 £101m of fixtures  
and fittings £55m 2012 £42m of property plant and equipment under construction and £23m 2012 £20m of motor vehicles
land and buildings comprise freehold and long leasehold properties with net book values of £116m 2012 £120m and short leasehold properties 
with a net book value of £50m 2012 £51m respectively
the net book value of assets held under finance leases and hire purchase contracts at 30 september 2013 was £315m 2012 £224m this 
includes £89m 2012 £94m of yachts motor boats and cruise ships £210m 2012 £115m of aircraft £6m 2012 £6m of land and buildings  
and £10m 2012 £9m 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 £161m 
2012 £32m
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12 investment in joint ventures associates and other investments
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
t otal
share of
net assets
£m
at 1 october 2011 100 142 242 
share of lossesprofits before amortisation interest and tax for the year 6 22 16 
share of interest and tax charge 3 2 5
share of amortisation for the year 1 5 6
additions 25 – 25 
d ividend paid 2 2 4
reclassifications and other movements 1 2 3
foreign exchange 7 – 7
at 30 september 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
additions 5 27 32
d isposals 5 9 14
d ividends paid 12 31 43
foreign exchange 1 6 7
at 30 s eptember 2013 85 158 243
the group’s share of joint venture and associate profit after interest and tax was £17m 2012 £5m 
during the year the group received a dividend of £28m 2012 £nil from sunwing travel group inc a 25 associate of the group and invested 
£27m into blue diamond hotels and resorts inc a 49 associate of the group also during the year the group acquired the remaining 501 
shareholding in the former associate tui infotec gmbh that it did not already own further details of this acquisition can be found in note 13
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 
registrationincorporation
joint ventures
travco group holding sae 500 incoming agency egypt 
le passage to india tours and travels private limited 500 incoming agency india 
atlantica h ellas sa 500 h otel operator g reece
atlantica h otels  r esorts l imited 499 h otel operator c yprus 
togebi holdings limited 490 t our operator c yprus 
a ssociates
sunwing travel group inc 250 t our operator c anada
blue d iamond h otels and r esorts inc 490 h otel operator barbados
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 
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notes to the consolidated financial statements
continued
12 investment in joint ventures associates and other investments continued
a summary of the group’s share of the results of its associates and joint ventures for the year ended 30 september 2013 and share of the assets 
and liabilities at this date is shown below
joint
ventures
2013
£m
a ssociates
2013
£m
t otal
2013
£m
joint
ventures
2012
£m
a ssociates
2012
£m
t otal
2012
£m
revenue 429 571 1000 405 517 922
operating costs 428 540 968 412 500 912
operating profitloss 1 31 32 7 17 10
net interest payablereceivable 4 1 3 2 1 1
lossprofit before taxation 3 32 29 9 18 9
taxation 4 8 12 1 3 4
lossprofit after taxation for the year 7 24 17 10 15 5
noncurrent assets 122 183 305 129 134 263
c urrent assets 104 154 258 111 134 245
t otal assets 226 337 563 240 268 508
c urrent liabilities 72 128 200 88 105 193
noncurrent liabilities 69 51 120 47 10 57
t otal liabilities 141 179 320 135 115 250
n et assets 85 158 243 105 153 258
2012 revenues and operating costs for associates have been restated on a gross basis in order to correct the comparative year’s presentation of 
these figures
t ogebi holdings l imited
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 four 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 
therefore 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
details of loan and other balances with togebi holdings limited and its subsidiary undertakings are disclosed in note 31 
s unwing t ravel group inc
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 investments
t rade
and listed
investments
£m
non
consolidated
entities
£m
t otal
£m
at 1 october 2011 51 21 72 
change in the fair value of available for sale financial assets through other comprehensive income 4 – 4
foreign exchange 1 1 2
at 30 september 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 s eptember 2013 23 13 36
other investments of £36m 2012 £66m comprise trade and listed investments and nonconsolidated entities
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during the year the group revalued its 143 shareholding in the airline group limited which in turn has a 42 shareholding in nats holdings 
limited upwards by £5m to fair value through profit and loss with the credit being included in separately disclosed items note 4 the basis of 
valuation was the offer received during the year for the majority of this investment in view of the impending disposal of 874 of this investment 
the element being disposed of has been reclassified as a current asset investment further disclosure regarding the valuation of the airline group 
limited is provided in note 26 h
the remaining trade and listed investments at 30 september 2013 represented the group’s 44 2012 44 shareholding in air berlin plc and  
a 10 2012 10 holding in the 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 
nonconsolidated entities are recorded at cost and reflect the group’s net investment held in circa 50 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
13 business combinations
a acquisitions in the year ended 30 september 2013
acquisitions were made in the year for a total investment value of £30m 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 £2m 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 £24m the one significant business acquired in the year was the remaining 501 of the voting equity shares of tui infotec 
gmbh ‘infotec’ that the group did not already own this business being reported as an associate in the year ended 30 september 2012
business d escription d ate country of incorporation
tui infotec gmbh it services 5 november 2012 g ermany
other individually insignificant businesses acquired during the year include nine europeanbased travel agency businesses and the entire share 
capital of jbs group inc isango limited and tt visa services pte limited
the relative size of the acquisitions made is set out in the table below
c onsideration
£m
number of
acquisitions
t otal
consideration
£m
t otal
goodwill
£m
0 – 5 14 14 10
5 1 16 14
t otal 15 30 24
the total consideration for these acquisitions of £30m comprised £12m of initial cash consideration £5m of deferred consideration £4m of 
contingent consideration and £9m of noncash consideration for the group’s share of infotec that it previously owned
the total provisional net assets acquired are set out below
fair value of net 
assets acquired
£m
intangible assets 8
property plant and equipment 11
deferred tax assets 5
t rade receivables 25
c ash 7
current liabilities excluding debt 27
non current liabilities including debt 7
retirement benefits 16
t otal 6
t otal consideration 30
less net assets acquired as above 6
t otal goodwill 24
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
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continued
13 business combinations continued
residual goodwill
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 current year acquisitions predominantly relates to the acquisition of infotec and represents the ability to control 
fully that business with a view to drive cost reduction and economies of scale in the group’s it infrastructure
acquisition related 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 £8m 2012 £3m has been expensed in the year and included in the acquisition related expenses 
in the consolidated income statement 
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
acquisition related expenses in operating profit
amortisation of business combination intangibles 57 59
other acquisition related expenses 2 3
remuneration for postcombination services 6 –
t otal 65 62
consideration payable
movements in deferred and contingent consideration in the year were as follows
deferred
consideration
£m
contingent
consideration
£m
l oan notes
£m
t otal
£m
at 1 october 2012 3 5 1 9 
recognised in the year relating to current year acquisitions 5 4 – 9
c ash paid 3 2 – 5
at 30 s eptember 2013 5 7 1 13
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 earn out period
no adjustments to amounts recognised in respect of prior year acquisitions have 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 acquisitions in the current year and in prior years 
where the consideration remains payable is listed below the amounts payable will be dependent on the results of the acquired businesses over 
the following periods
a cquisition 
basis of calculation
for consideration payable
f inancial year
of acquisition
period for calculation
of consideration
range of consideration
payable 
£m
lima tours sac earnings and employment 2011 up to 30 june 2014 14
mala pronta viagens e turismo ltda earnings and employment 2012 up to 31 march 2014 01
jbs group inc earnings and employment 2013 up to 31 march 2015 03
other individually insignificant considerations payable
earnings alone and 
earnings  employment 20082013 up to 31 december 2015 02
total range of contingent consideration payable in 
respect of current and prior year acquisitions 110
the expected contingent consideration for all acquisitions above is calculated using multiples of underlying earnings with some amounts payable 
dependent upon employment 
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b cash flows arising in respect of acquisitions
total cash flows relating to acquisitions in the year including amounts paid in respect of deferred and contingent consideration arising on prior 
period acquisitions are as follows
c ash paid
2013
£m
acquisitions in the current year excluding acquisition related expenses 12
cash acquired with acquisitions 7
net cash outflow in the year relating to current year acquisitions 5
cash paid relating to prior period acquisitions 5
net cash outflow in the year relating to acquisitions 10
acquisition related expenses charged to the income statement 2
total cash outflows in the year relating to acquisitions 12
c  c onsolidated income statement
if the results of the acquired businesses had been included in these consolidated financial statements from 1 october 2012 until each of their 
respective acquisition dates the group‘s revenue would have been approximately £7m higher there would have been no significant impact  
on the group’s results after adjusting for amortisation of business combination intangibles had those intangible assets been recognised since  
1 october 2012
since the respective acquisition dates the acquired businesses contributed revenues of £26m underlying earnings of £2m and loss after tax 
including the amortisation of business combination intangibles of £1m
d prior period revisions to fair values
in the year ended 30 september 2012 the group acquired various businesses for a total consideration of £16m the finalisation of the acquisition 
balance sheets for these businesses has not led to a material adjustment to goodwill presented in the 2012 accounts and therefore there is no 
restatement of the results for the year ended 30 september 2012 or balance sheet as at 30 september 2012 in respect of these finalisations 
14 deferred tax assets and liabilities
a ssets l iabilities n et
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
intangible assets 2 7 145 147 143 140
f inance lease transactions – – 2 2 2 2
property plant and equipment 86 77 28 38 58 39
f inancial instruments 29 19 13 14 16 5
employee benefits 94 105 1 – 93 105
other short term temporary differences 138 215 114 200 24 15
tax value of losses carried forward 91 74 – – 91 74
t otal 440 497 303 401 137 96
set off of deferred tax within the same jurisdiction 272 372 272 372 – –
net deferred tax assets 168 125 31 29 137 96
the group has recognised deferred tax assets relating to tax losses in individual tax jurisdictions based on forecast future taxable profits
unrecognised deferred tax assets
deferred tax assets have not been recognised in respect of the following items reported at the applicable tax rate
30 s eptember
2013
£m
30 september
2012
£m
c apital losses 3 2
other tax losses 267 259
t otal losses 270 261
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 £6m which are subject to a four year expiry period 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 
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notes to the consolidated financial statements
continued
14 deferred tax assets and liabilities continued
movements in deferred taxation during the current year
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 s eptember
2013
£m
intangible assets 140 – – – 3 143
f inance lease transactions 2 – – – – 2
property plant and equipment 39 – 19 – – 58
f inancial instruments 5 – 7 22 4 16
employee benefits 105 3 6 11 2 93
other short term temporary differences 15 1 4 3 1 24
tax value of losses carried forward 74 1 15 – 1 91
t otal 96 5 25 14 3 137
movements in deferred taxation during the prior year are analysed as follows
balance at
1 october
2011
£m
arising on
acquisition
£m
extinguished
on disposal
£m
reclassification
£m
charged
in the
consolidated
income
statement
£m
recognised
outside of the
consolidated
income
statement
£m
foreign
exchange
£m
balance at
30 september
2012
£m
intangible assets 72 – – 72 2 – 6 140
f inance lease transactions 2 – – – – – – 2
property plant and equipment 45 – – – 8 – 2 39
f inancial instruments 16 – 4 – – 15 2 5
employee benefits 88 – – – 14 32 1 105
other short term temporary differences 57 1 – 72 8 3 6 15
tax value of losses carried forward 81 – – – 4 – 3 74
t otal 67 1 4 – 36 50 12 96
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 
2013 of cash flow hedging derivatives that will be settled against future transactions other short term temporary differences relate to operating 
expenses and related accruals and provisions for which a tax deduction has not yet been recognised 
15 inventories
30 s eptember
2013
£m
30 september
2012
£m
marine inventories 22 28
airline spares and operating equipment 20 19
other operating inventories 15 14
t otal 57 61
included within cost of sales in the year is a writedown of inventories by £3m 2012 £7m to net realisable value 
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16 t rade and other receivables
30 s eptember 2013 30 september 2012
c urrent
assets
£m
n on
current
assets
£m
t otal
assets
£m
c urrent
assets
£m
non
current
assets
£m
t otal
assets
£m
trade receivables gross 497 – 497 548 – 548 
less provision for impairment 49 – 49 49 – 49
448 – 448 499 – 499 
amounts owed by related parties note 31 55 36 91 52 34 86 
interest bearing other receivables 7 3 10 – 12 12 
other receivables 189 56 245 196 56 252 
699 95 794 747 102 849 
prepayments 632 110 742 565 123 688 
t otal 1331 205 1536 1312 225 1537 
other receivables include aircraft related receivables lease and security deposits derivative settlement 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
30 s eptember
2013
£m
30 september
2012
£m
united kingdom 141 191
g ermany 101 111
f rance 82 91
other european countries 207 216
rest of the world 91 101
t otal 622 710
trade receivables are disclosed net of provisions for bad and doubtful debts an analysis of which is shown below
30 s eptember
2013
£m
30 september
2012
£m
balance at the beginning of the year 49 58
charge to the consolidated income statement 15 9
utilisation of provision 15 18
t otal 49 49
the ageing of the financial assets included within trade and other receivables at the balance sheet date was
30 s eptember 2013 30 september 2012
gross
£m
provision
£m
n et
£m
g ross
£m
provision
£m
n et
£m
n ot overdue 479 5 474 482 5 477
overdue 130 days 73 1 72 136 1 135
overdue 3190 days 52 1 51 65 6 59
overdue 91180 days 13 2 11 17 6 11
overdue more than 180 days 54 40 14 59 31 28
t otal 671 49 622 759 49 710
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
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notes to the consolidated financial statements
continued
16 t rade and other receivables continued
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 £44m 2012 £44m relates to gross receivables of £74m 2012 £78m 
there are £118m of receivables that are overdue and not impaired at 30 september 2013 2012 £199m 
amounts owed by related parties are disclosed further in note 31
17 c ash and cash equivalents
30 s eptember
2013
£m
30 september
2012
£m
c ash in hand 6 21
c ash at bank 920 265
d eposits 827 544
c ash and cash equivalents 1753 830
for the year ended 30 september 2013 cash and cash equivalents have been shown gross of specific overdraft balances within the group’s 
pooling facilities where the group does not currently have the intention to exercise its right to settle these particular balances simultaneously the 
amount of cash balances presented gross of the related overdraft position is £491m in the year ended 30 september 2012 the group had both 
the contractual right as well as the intention to settle these balances on a net basis and therefore the related overdraft and cash balances were 
presented on a net basis 
cash and cash equivalents includes £47m 2012 £34m 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 short term 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 balance the group is involved in a longrunning vat case with the belgian government during the current 
financial year a total of £98m has been 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 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 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 
18 other investments
30 s eptember
2013
£m
30 september
2012
£m
t rade investments 30 –
regulatory deposits with a term exceeding 3 months 5 17
other deposits with a term exceeding 3 months 1 2
other investments 36 19
trade investments of £30m 2012 £nil represents the portion of the group’s shareholding in the airline group limited that is in the process of 
being disposed accordingly the investment has been reclassified from noncurrent to current asset investments at the year end further details 
of this investment have been disclosed in notes 12 and 26
19 assets classified as held for sale
30 s eptember
2013
£m
30 september
2012
£m
yachts and motor boats 1 1
land and buildings 5 –
aircraft – 5
other 4 7
net assets classified as held for sale 10 13
assets held for sale are expected to be sold within 12 months further disclosure of assets being classified as held for sale within the year is 
included in note 11
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20 interestbearing loans and borrowings
30 s eptember
2013
£m
30 september
2012
£m
c urrent liabilities
bank loans and overdrafts 528 6
finance leases and hire purchase contracts 22 23
other financial liabilities 44 41
t otal 594 70
for the year ended 30 september 2013 bank overdrafts have been shown gross of specific cash balances within the group’s pooling facilities 
where the group does not currently have the intention to exercise its right to settle these particular balances simultaneously the amount of bank 
overdrafts presented gross of the related cash position is £491m in the year ended 30 september 2012 the group had both the contractual right 
as well as the intention to settle these balances on a net basis and therefore the related overdraft and cash balances were presented on a net 
basis
other financial liabilities mainly comprise the fair value of two put options written by the group 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 2015 a second put option written by the group to the same noncontrolling 
interest shareholder for the remaining 10 shareholding has no time limit 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
30 s eptember
2013
£m
30 september
2012
£m
n oncurrent liabilities
amounts owed to related parties – 10
bank loans 61 17
l oan notes 1 1
finance leases and hire purchase contracts 253 163
c onvertible bonds 697 675
other financial liabilities – 2
t otal 1012 868
the bank loans and loan notes are repayable
30 s eptember
2013
£m
30 september
2012
£m
w ithin one year 37 6
between one and five years 62 18
t otal 99 24
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
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 four aircraft 2012 three 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
principal
£m
interest
£m
30 s eptember
2013
£m
principal
£m
interest
£m
30 september
2012
£m
in respect of aircraft boats cruise ships and equipment 
payable within
one year 22 11 33 23 6 29
one to five years 83 38 121 66 25 91
after five years 170 34 204 97 16 113
t otal 275 83 358 186 47 233
c onvertible bonds
30 s eptember
2013
£m
30 september
2012
£m
£350m convertible bond 60 october 2014 336 326
£400m convertible bond 49 april 2017 361 349
t otal 697 675
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notes to the consolidated financial statements
continued
20 interestbearing loans and borrowings continued
the group has two convertible bonds in issue details of which are as follows
• a £350m fixed rate 6 bond was issued in october 2009 raising £341m net of issue costs the bond is convertible at the option of the holder 
before or upon maturity in october 2014 conversion into ordinary shares will occur at a premium of 33 to the group’s share price on the date 
of issuance
• a £400m fixed rate 49 bond was issued in april 2010 raising £391m net of issue costs the bond is convertible at the option of the holder 
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 2013 the equity portion of the bonds of £114m 
2012 £114m gross of deferred tax of £23m 2012 £26m is included in the convertible bond reserve
reconciliation of face value to carrying amount
£350m
convertible
bond
£m
£400m
convertible
bond
£m
t otal
convertible
bonds
£m
convertible bond – face value 350 400 750
issue cost 9 9 18
c ash received 341 391 732
equity portion 48 66 114
interest accretion in prior years 27 22 49
issue costs amortised in prior years 6 2 8
carrying amount at 30 september 2012 326 349 675
interest accretion 9 10 19
amortisation of issue costs 1 2 3
carrying amount at 30 september 2013 336 361 697
21 current trade and other payables
30 s eptember
2013
£m
30 september
2012
£m
t rade payables 931 1058
deferred and contingent consideration note 13a 4 4
other payables 177 105
amounts owed to related parties note 31 97 94
other taxes and social security costs 87 98
accruals and deferred income 1709 1521
c lient money received in advance 1768 1669
t otal 4773 4549
further disclosure of amounts owed to related parties is included in note 31 
22 provisions for liabilities
aircraft
maintenance
£m
restructuring
£m
other
£m
t otal
£m
at 1 october 2012 398 63 155 616 
provided in the year 141 32 118 291
r eleased in the year 10 3 8 21
unwinding of discounted amount note 5 4 – 1 5
c osts incurred 174 49 34 257
reclassification – 1 6 7
foreign exchange 6 3 3 12
at 30 s eptember 2013 365 45 229 639
analysed as
noncurrent 266 – 96 362
c urrent 99 45 133 277
365 45 229 639
at 30 september 2012
analysed as
noncurrent 235 2 79 316 
c urrent 163 61 76 300 
398 63 155 616 
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strategic re port
 
bu sine ss and financial review 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
aircraft maintenance
in respect of aircraft provision is made for maintenance overhaul and repair costs of operating leased airframes engines and certain other 
components based on 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 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
restructuring
restructuring which includes severance payments relates to provisions arising as a result of reorganisation and restructuring plans that are 
irrevocably committed further details of 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 
other
other provisions relate to 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 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
the group has a policy to mitigate the financial risk of litigation and disaster through insurance with third party providers and the use of captive 
insurance companies the group’s exposure to risk is capped by single event and aggregate limits with insurance in place for exposures above 
these limits 
the group provides for outstanding claims including settlement expenses using a consistent methodology based upon historical claims patterns 
average claims amounts external legal advice and future expectations
23 noncurrent trade and other payables
30 s eptember
2013
£m
30 september
2012
£m
deferred and contingent consideration note 13a 8 4
other payables 37 28
amounts owed to related parties note 31 1 1
accruals and deferred income 25 13
c lient money received in advance 8 2
t otal 79 48
24 c alled up share capital
30 s eptember
2013
£m
30 september
2012
£m
issued and fully paid
1118010670 2012 1118010670 ordinary shares of 10p each 112 112
t otal 112 112
as described more fully in note 36 the ultimate parent company tui ag is the beneficial owner of 5448 2012 5626 of the company’s 
issued ordinary share capital as at 30 september 2013
at 30 september 2013 8047575 shares 2012 9545591 shares were held by the group’s employee benefit trust based on 30 september 2013 
share price of £368 2012 £234 the value of shares held was £29615076 2012 £22336683 
details of dividends debited to equity in the year are set out in note 9
whilst the company has the authority to purchase its own shares it has not done so in either the current or prior years
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notes to the consolidated financial statements
continued
25 capital and reserves
other reserves
note
called up
share capital
£m
convertible
bond
reserve
£m
merger
reserve
£m
translation
reserve
£m
hedging
reserve
£m
accumulated
losses
£m
equity
holders
of parent
£m
non
controlling
interests
£m
total
equity 
£m
balance at 1 october 2011  112 85 2523 286 37 1155 1888 50 1938 
profit for the year – – – – – 138 138 1 137 
other comprehensive loss
income for the year
foreign exchange translation – – – 157 5 4 158 2 160
actuarial losses 6c – – – – – 172 172 – 172
tax on actuarial losses 8iii – – – – – 32 32 – 32
cash flow hedges
– movement in fair value 26j – – – – 42 – 42 – 42
–  amounts recycled to the 
consolidated income statement 26j – – – – 30 – 30 –  30
tax on cash flow hedges 8iii – – – – 15 – 15 – 15
available for sale financial assets
– movement in fair value 12 – – – – – 4 4 – 4
–  amounts recycled to the 
consolidated income statement – – – – – 10 10 – 10 
other comprehensive loss for the year – – – 157 62 130 349 2 351 
total comprehensive lossincome for 
the year – – – 157 62 8 211 3 214
transactions with owners          
sharebased payment – charge for the 
year – – – – – 16 16 – 16 
sharebased payment – disposal on 
award of shares – – – – – 5 5 – 5
dividends 9 – – – – – 125 125 3 128
acquisition of noncontrolling interest – – – – – 1 1 – 1 
change in deferred tax rate on equity 
portion of convertible bond – 3 – – – – 3 – 3 
at 30 september 2012 112 88 2523 129 25 1262 1565 44 1609 
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str ategi c r epor t
 
bu siness and financial r evi ew 
dir ector s’ r epor t
 
fin an cial statemen ts
 
shar ehol der i nfor mation
other reserves
note
called up
share capital
£m
convertible
bond
reserve
£m
merger
reserve
£m
translation
reserve
£m
hedging
reserve
£m
accumulated
losses
£m
equity
holders
of parent
£m
non
controlling
interests
£m
total
equity 
£m
balance at 1 october 2012 112 88 2523 129 25 1262 1565 44 1609 
profit for the year – – – – – 60 60 3 63
other comprehensive income
loss for the year
foreign exchange translation – – – 56 1 10 47 4 43
actuarial losses 6c – – – – – 23 23 – 23
tax on actuarial losses 8iii – – – – – 11 11 – 11
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 – – – 56 58 43 45 4 49
total comprehensive incomeloss for 
the year – – – 56 58 17 15 1 14
transactions with owners
sharebased payment –  
charge for the year – – – – – 15 15 – 15
sharebased payment –  
disposal on award of 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
at 30 september 2013 112 91 2523 185 83 1378 1450 41 1491
convertible bond reserve
the convertible bond reserve comprises the equity element of the convertible bonds and the related portion of the bonds’ issue costs see 
note 20 the equity element is calculated in accordance with the accounting policy described in note 1eii and is presented net of deferred tax 
other reserves
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 g roup’s reporting 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 arising on cash flow hedges are initially recorded in the hedge reserve and are recycled to the consolidated income statement  
in accordance with the accounting policy in note 1f
the group also has a nondistributable capital reserve of £01m at 30 september 2013 2012 £01m 
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notes to the consolidated financial statements
continued
26 financial instruments
a treasury risk overview
the group is exposed to a variety of financial risks
• market risk in respect of foreign currency rate risk jet fuel price risk and interest rate risk
• liquidity risk in respect of the group’s ability to meet its liabilities 
• credit risk in respect of recovery of amounts owing to the group and
• capital risk in respect of its capital structure and cost of capital
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 g roup 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 
g mb and to each board meeting of tui travel pl c
in line with its established policy the group has monitored throughout the year its counterparty exposure with individual financial institutions 
such counterparty risk can arise by way of cash deposited or derivative instruments traded
b currency risk management
the group is exposed to currency risk on sales purchases and borrowings that are denominated in a currency other than the functional currencies 
of individual group businesses which are principally sterling us dollar euro and swedish krona 
the group hedges its foreign currency exposures on a seasonal basis that is winter and summer with each season comprising a sixmonth period 
at the start of a season the group will have hedged substantially all of its foreign currency exposure forecast sales and purchases and related 
assets and liabilities for that season using predominantly forward exchange contracts and 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 publishes its consolidated financial statements in sterling and as a result it is also subject to foreign currency exchange translation risk 
in respect of the translation of the results and underlying net assets of its foreign operations into sterling
the following significant exchange rates to the group’s sterling presentation currency excluding the impact of hedged transactions are illustrative 
of the rates applied during the current and prior year
average rate mid spot rate
£1 g bp equivalent
year ended
30 september
2013
year ended
30 september
2012
30 september
2013
30 september
2012
u s dollar 1561 1589 1615 1620
euro 1190 1203 1196 1253
swedish krona 10225 10635 10355 10588
as at 30 september 2013 the group has hedged forecast transactions for 43bn 2012 41bn and €13bn 2012 €18bn for periods up until 
w inter 2014 principally relating to w inter 2013 and summer 2014 
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dir ector s’ r epor t
 
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shar ehol der i nfor mation
c commodity risk
fuel commodity risk arises from the group’s operation of aircraft
the group hedges its fuel commodity exposures on a seasonal basis being winter and summer with each season comprising a sixmonth period 
at the start of a season the group will have hedged substantially all of its fuel commodity exposure for that season using predominantly 
commodity swaps or options most with a maturity of less than one year from the reporting date 
as at 30 september 2013 the group has hedged transactions for fuel of 17m metric tonnes 2012 20m metric tonnes for periods up until 
w inter 2014 
details of fuel forward derivative instruments are set out in note 26i
d credit risk
credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the group credit risk arises 
from cash balances including bank deposits and cash and cash equivalents and derivative financial instruments as well as credit exposures to 
customers including outstanding receivables financial guarantees and committed transactions credit risk is managed separately for treasury and 
operating related credit exposures 
the group minimises its financial credit risk through the application of risk management policies approved and monitored by the board while 
counterparties are limited to major banks and financial institutions group policy ensures that individual counterparty limits are adhered to and 
that there are no significant concentrations of credit risk the only exception to this at 30 september 2013 was the £98m received from the 
belgian government in relation to the long running vat case note 17 this money is currently deposited with one financial institution 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 receivables exposures are managed locally in the operating units where they arise and credit limits are set as deemed appropriate 
for the customer there is no material concentration of credit risk with respect to trade and other receivables as the group has a large number of 
internationally dispersed customers 
the maximum credit exposure to the carrying amount of financial assets at the balance sheet date is shown in the table below 
carrying value
30 september
2013
£m
carrying value
30 september
2012
£m
trade and other receivables note 16 622 710
cash and cash equivalents note 17 1753 830
derivatives – contracts used for hedging note 26i 44 119
trade and listed investments note 12 23 46
other investments note 18 36 19
total 2478 1724
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 £49m 2012 £49m
cash cash equivalents and other investments principally comprise money market deposits and other short term investments the investments 
are predominantly with counterparties with a strong credit rating of a1p1 or a2p2 at 30 september 2013 approximately 42 2012 27 of 
the group’s unrestricted cash and cash equivalents were invested with counterparties based in the united kingdom and 38 2012 53 were 
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 sim ilar 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 g roup w here appropriate the g roup obtains security collateral over the related accommodation property to mitigate 
credit risk at 30 september 2013 prepaid accommodation which is recoverable after more than one year was £108m 2012 £122m 
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notes to the consolidated financial statements
continued
26 financial instruments continued
e interest 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 floating rate aircraft leases and floating rate bank loans and cash balances
the group does not account for any fixed rate financial liabilities at fair value through profit and loss 
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 year of maturity 
carrying
amount 
30 september
2013 
£m
carrying
amount
30 september
2012
£m 
convertible bonds note 20 sterling 49 – 60 2014 – 2017 697 675
secured bank loans sterling 12 – 32 2013 – 2018 19 18
eur 19 – 50 2013 – 2027 16 2
usd 40 – 48 2014 – 2024 60 –
unsecured bank loans eur 26 – 39 2013 – 2016 3 3
98 23
finance leases eur 13 – 84 2013 – 2046 74 80
usd 45 – 90 2013 – 2022 198 101
mad 59 – 65 2014 – 2017 2 2
aud 72 – 118 2013 – 2015 1 3
275 186
loan notes usd 65 2016 1 1
amounts owed to related parties usd 59 – 10
other financial liabilities eur 0 – 50 2013 – 2014 44 43
bank overdrafts eur 05 on demand 491 –
total interestbearing liabilities 1606 938
analysed between
fixed rate instruments 1057 817
variable rate instruments 549 121
1606 938
the interest rate applicable to bank overdrafts above is the amount charged in respect of the balance shown any balances offsetting this in the 
group’s pooling arrangements are credited at a similar rate to the entities concerned
f liquidity risk
liquidity risk is the risk that the group will not be able to meet its financial obligations as they fall due the group’s approach is to ensure that  
it will have sufficient liquidity to meet its liabilities when due under both normal and stressed circumstances 
the group’s liquidity peaks in july and august during the european summer holiday season with the liquidity low point being in december and 
january to manage the liquidity position the group is able to draw cash advances under its existing bank facilities which at 30 september 2013 
principally comprised the following main sources of long term debt funding
• the external bank revolving credit facilities totalling £1120m 2012 £970m plus bonding and letter of credit facilities totalling £185m 
2012 £185m which all mature in june 2015 from these facilities £136m has been utilised for letter of credit purposes at 30 september 2013 
2012 £162m
• a £350m convertible bond due october 2014 issued in october 2009 
• a £400m convertible bond due april 2017 issued in april 2010 and
• a £300m 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
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 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
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dir ector s’ r epor t
 
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shar ehol der i nfor mation
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 2013 
carrying 
amount
£m
contractual
cash flows
£m
w ithin
one year
£m
between 
one and
two years 
£m
between
two and
five years
£m
more than
five years
£m
nonderivative financial liabilities
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
l oan notes 1 1 – – 1 –
other financial liabilities 44 44 44 – – –
trade and other payables 2733 2733 2687 46 – –
derivative financial liabilities
contracts used for hedging 173 168 149 19 – –
total 4512 4773 3484 492 550 247
30 september 2012 
carrying 
amount
£m
contractual
cash flows
£m
w ithin
one year
£m
between 
one and
two years 
£m
between
two and
five years
£m
more than
five years
£m
nonderivative financial liabilities
convertible bonds 675 901 41 41 819 –
secured bank loans 20 21 4 12 5 –
unsecured bank loans 3 4 – 4 – –
finance leases 186 233 29 23 68 113
l oan notes 1 1 – – 1 –
r elated parties 10 11 – – 11 –
other financial liabilities 43 44 44 – – –
trade and other payables 2618 2618 2581 37 – –
derivative financial liabilities
contracts used for hedging 145 138 125 13 – –
total 3701 3971 2824 130 904 113
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
at 30 september 2013 the group had available undrawn committed borrowing facilities of £1192m 2012 £1018m 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
30 september
2013
£m
30 september
2012
£m
expiring
in more than one year but less than five years 1192 1018
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notes to the consolidated financial statements
continued
26 financial instruments continued
g analysis of total financial assets and financial liabilities
the tables below set out the group’s ias 39 classification for each of its financial assets and liabilities
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
l oans 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
total 37 105 18 2381 4291 2034
at 30 september 2012
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
l oans and
receivables
£m
financial
liabilities at
amortised cost
£m
total
carrying value
£m
cash and cash equivalents – – – 830 – 830
borrowings due within one year 38 – – – 32 70
borrowings due after more than one year – – – – 868 868
derivative assets 17 102 – – – 119
derivative liabilities 21 124 – – – 145
other financial assets 30 – 16 729 – 775
other financial liabilities 3 – – – 2615 2618
total 15 22 16 1559 3515 1977
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
derivatives presented under held for trading under ias 39 classifications are analysed in note 26i between cash flow hedges and derivatives not 
hedge accounted
further information in relation to changes in other financial assets at fair value through profit and loss are shown in note 12
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shar ehol der i nfor mation
h fair value of financial assets and financial liabilities
the fair values of financial assets and liabilities together with carrying amounts shown in the consolidated balance sheet at 30 september 2013 
and at 30 september 2012 are as follows
30 september 2013 30 september 2012
carrying
amount
£m
fair
value
£m
carrying
amount
£m
fair
value
£m
cash and cash equivalents 1753 1753 830 830
borrowings
convertible bond 697 883 675 750
bank loans and overdrafts 589 589 23 23
l oan notes 1 1 1 1
finance lease liabilities 275 280 186 191
other financial liabilities 44 44 43 43
amounts owed to related parties – – 10 10
derivative financial instruments
forward exchange contracts used for hedging
 – assets 36 36 75 75 
 – liabilities 148 148 129 129
commodity contracts used for hedging
 – assets 8 8 44 44 
 – liabilities 25 25 16 16
other financial assets
trade and other receivables 622 622 710 710 
trade and listed investments 23 23 46 46 
other investments 36 36 19 19 
other financial liabilities
current trade and other payables 2687 2687 2581 2581
noncurrent trade and other payables 46 46 37 37
total 2034 2225 1977 2057
the basis for fair value measurement of financial assets and liabilities is set out in note 1w
fair value measurements
ifrs 7 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 ba sed on observable market data but reflecting management’s own assumptions about pricing the asset or liability
the g roup 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
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notes to the consolidated financial statements
continued
26 financial instruments continued
the group’s financial assets and liabilities excluding finance lease liabilities measured at fair value at 30 september 2013 are categorised as follows
at 30 september 2013 
level 1
£m
level 2
£m
level 3 
£m
total
fair value
£m
a ssets
trade listed and other investments 11 – 42 53
derivative financial instruments – 44 – 44
total assets 11 44 42 97
liabilities
derivative financial instruments – 173 – 173
other financial liabilities – – 48 48
total liabilities – 173 48 221
total 11 129 6 124
at 30 september 2012 
level 1
£m
level 2
£m
level 3 
£m
total
fair value
£m
a ssets
trade listed and other investments 10 – 36 46
derivative financial instruments – 119 – 119
total assets 10 119 36 165
liabilities
derivative financial instruments – 145 – 145
other financial liabilities – – 41 41
total liabilities – 145 41 186
total 10 26 5 21
the movements in level 3 instruments measured on a recurring basis for the year ended 30 september 2013 are as follows
trade
and other
investments
£m
other
financial
liabilities
£m
total
level 3
instruments
£m
at 1 october 2011 37 43 6
cash settlement of contingent consideration – 3 3
adjustment of deferred consideration through goodwill – 2 2
foreign exchange recognised in other comprehensive income 1 1 –
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 30 september 2013 42 48 6
trade and listed investments
as at 30 september 2013 £42m 2012 £36m of trade and other investments were categorised as level 3 instruments these consist of the 
group’s £35m 2012 £30m investment in the airline group limited and other trade investments in the equity of unlisted companies of 
£7m 2012 £6m of the £35m in respect of the airline group limited £30m 2012 £nil is disclosed as an other investment in current assets 
note 18 and £5m 2012 £30m  is disclosed as an other investment in non current 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 
conditional disposal for which was agreed post year end and announced on 19 november 2013 in the absence of any robust market valuation in 
2012 the investment was valued by a third party using a discounted cash flow methodology the key assumptions included estimates of future 
operating results and the level of future contributions to its pension schemes the latter of which was a key uncertainty in the valuation
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
derivative assets and liabilities
derivatives are valued in the market using discounted cash flow techniques these techniques incorporate inputs at level 2 such as interest rates 
and foreign currency exchange rates these market inputs are used in the discounted cash flow calculation incorporating the instrument’s term 
notional amount 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
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strategic report
 
business and financial review
 
directors’ report
 
finan cia l statemen ts
 
sh areh older information
other financial liabilities
the principal element of the put options to acquire the remaining equity stake in l’tur tourismus ag £38m 2012 £38m are 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 £7m is also measured at fair value based on the relevant contracts 
there are no reasonably possible changes in assumptions which would materially alter the value of these level 3 financial instruments
i derivative instruments
at the balance sheet date the fair value of the group’s derivative financial assets and liabilities was as follows
30 september 2013 30 september 2012
a ssets
fair value
£m
liabilities
fair value
£m
total
fair value
£m
assets
fair value
£m
liabilities
fair value
£m
total
fair value
£m
cash flow hedges
foreign exchange forwards 34 122 88 58 108 50
commodity options – 1 1 5 2 3
commodity swaps 8 24 16 39 14 25 
42 147 105 102 124 22
derivatives not hedge accounted
foreign exchange forwards 2 26 24 17 21 4
total 44 173 129 119 145 26
analysed as
current 41 147 106 98 125 27 
noncurrent 3 26 23 21 20 1 
total 44 173 129 119 145 26 
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 2013 and have been shown net for each instrument
projected cash flows
30 september 2013
less than
one year
£m
between
one and
two years
£m
between
two and 
five years
£m
over
five years
£m
derivative financial assets
foreign exchange forwards 47 3 – –
commodity swaps 11 5 1 –
58 8 1 –
derivative financial liabilities
foreign exchange forwards 142 19 – –
commodity swaps 7 – – –
149 19 – –
total 91 11 1 –
projected cash flows
30 september 2012
less than
one year
£m
between
one and
two years
£m
between
two and 
five years
£m
over
five years
£m
derivative financial assets
foreign exchange forwards 72 6 – –
commodity swaps 50 19 1
commodity options 3 – – –
125 25 1 –
derivative financial liabilities
foreign exchange forwards 121 13 – –
commodity swaps 4 – – –
125 13 – –
total – 12 1 –
ineffectiveness
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 2013 comprised a debit of £3m 2012 £3m credit 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 credit of £1m 2012 £2m debit which is 
included in cost of sales in the consolidated income statement
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notes to the consolidated financial statements
continued
26 financial instruments continued
j amounts recognised in equity
the following amounts have been recognised in equity during the year
year ended
30 september
2013
£m
year ended
30 september
2012
£m
hedging reserve
effective portion of changes in fair value of cash flow hedging instruments 76 42
fair value of cash flow hedges recycled to the consolidated income statement 5 30
81 72
deferred tax on the above items recognised outside of the consolidated income statement is shown in note 8iii
k sensitivity 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
interest 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 2012 increase of £3m a 100 basis points reduction in interest rates is not considered reasonably 
possible
currency risk
the g roup hedges substantially all of its foreign currency exposures not denominated in the functional currency of individual g roup companies 
this mitigates the sensitivity impact of fluctuations in the underlying exchange rates
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 £21m or 
increased it by £21m respectively
similarly under the above assumptions a 10 strengthening or weakening of sterling against all principal exchange rates would have reduced 
profit before tax by £16m 2012 reduced profit before tax by £5m or increased it by £18m 2012 increased profit before tax by £6m 
respectively equity before tax would have decreased by £226m 2012 £207m or increased by £276m 2012 £253m respectively 
fuel price risk
the sensitivity analysis is based on a 10 increase or decrease in fuel prices and the sensitivity will differ correspondingly if the fuel markets are 
more or less volatile under these assumptions with a 10 increase or decrease in the unit price of fuel profit before tax would neither increase 
nor decrease materially because of the fuel price hedging policy and appropriate pricing adjustments equity before tax would increase by £97m 
2012 £110m or decrease by £96m 2012 £109m respectively
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shar ehol der i nfor mation
27 movements in cash and net debt and cash conversion
a movements in cash and net debt
cash
and cash 
equivalents
£m
convertible
bonds
£m
amounts due
to related
parties
£m
bank loans 
overdrafts
£m
l oan
notes
£m
finance
leases
£m
other
financial
liabilities
£m
total
£m
r estricted 
cash 
£m
available net 
debtcash
£m
at 1 october 2011 902 654 36 30 1 132 45 4 46 42
cash movement 17 – 23 5 – 19 1 65 12 77
noncash movement – 21 – – – 83 3 107 – 107
foreign exchange 89 – 3 2 – 10 4 70 – 70
at 30 september 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
as set out in note 17 cash and cash equivalents included £145m 2012 £34m of restricted cash
the 2013 noncash movement of £22m 2012 £21m in convertible bonds primarily relates to the accretion of the equity portion of the 
convertible bonds 
the 2013 noncash movement of £491m 2012 £nil between cash and cash equivalents and bank loans and overdrafts reflects the impact of 
specific overdraft balances being presented on a gross basis further details are provided in notes 17 and 20 other noncash movements in 2013 
within bank loans and overdrafts and finance leases predominantly relate to advances in respect of additions to property plant and equipment
b cash conversion – n ongaap measure
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
year ended
30 september
2013
£m
year ended
30 september
2012
£m
underlying operating profit consolidated income statement 589 490 
net financial expense 5 116 100
underlying profit before tax 473 390 
movement in available cash net of debt 27a 267 77 
add
dividends paid to ordinary and noncontrolling interests consolidated statement of cash flows 132 128 
acquisition of subsidiaries net of cash acquired consolidated statement of cash flows 10 23 
investment in joint ventures associates and other investments 14 25 
net predelivery payments for aircraft 11 4 53
proceeds from other investments consolidated statement of cash flows – 1
free cash flow 427 305 
cash conversion 90 78 
the 2012 figures have been restated to exclude
i contractually required net predelivery payments for aircraft and 
ii restricted cash
from the movement in available cash as management considers this to be a better measure of performance in respect of free cash flows 
investments in joint ventures associates and other investments of £14m 2012 £25m excludes the group’s investment of £27m 2012 £nil into 
blue diamond hotels and resorts inc which was funded by way of a £28m 2012 £nil dividend from sunwing travel group inc a related party to 
blue diamond hotels and resorts inc as these transactions are considered to be linked this investment has been excluded from the calculation 
of free cash flow further details of these transactions are included in note 12
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notes to the consolidated financial statements
continued
28 operating lease commitments
total group obligations under noncancellable operating lease contracts are payable as follows
l and and
buildings
30 september
2013
£m
aircraft ships
yachts and
equipment
30 september
2013
£m
l and and
buildings
30 september
2012
£m
aircraft ships
yachts and
equipment
30 september
2012
£m
total commitments under noncancellable operating leases expiring
w ithin one year 265 383 245 366
between one and five years 527 770 496 725
later than five years 226 427 209 201
total 1018 1580 950 1292
operating lease commitments in respect of land and buildings comprise commitments in respect of the g roup’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 2013 was £80m 2012 £100m and is included 
within the table above
in total the group operates 123 aircraft on operating leases at 30 september 2013 2012 129 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
29 capital commitments
the group’s capital commitments are as follows
30 september
2013
£m
30 september
2012
£m
contracted but not provided for
intangible assets 3 6
total 3 6
in addition to the above items at the year end the group had contracted to purchase 79 2012 31 aircraft with initial deliveries to start in the first 
quarter of the financial year 201314 at list price the total order value was us9772m 2012 us4067m 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 2013 was £13m 2012 £nil
30 contingent liabilities
the g roup 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
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str ategi c r epor t
 
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dir ector s’ r epor t
 
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shar ehol der i nfor mation
31 related party transactions
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 g roup
convertible bond
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 2014 at the latest
trademark l icence agreement
the trademark licence agreement incorporates trademark licences granted from tui ag to members of the tui tourism group in relation  
to tui tourism’s use of the tui name and logo and other trademarks from within tui ag’s portfolio of trademarks used in the former tui 
tourism’s business licence fees payable under each licence are an annual fee equal to 002 of the average annual gross turnover of the relevant 
licensee under the relevant trademarks measured over a three year period total licence fees charged for the year ended 30 september 2013 were 
£3m 2012 £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
hotel framework agreement
tui deutschland has signed an exclusivity agreement with tui ag’s robinson hotel portfolio under the terms of the agreement tui deutschland 
paid €8m in the financial year ended 30 september 2012 €10m in the financial year ending 30 september 2013 and must 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
year ended
30 september
2013
£m
year ended
30 september
2012
£m
year ended
30 september
2013
£m
year ended
30 september
2012
£m
related party
u ltimate parent tui ag 8 7 4 6
hotel and resort subsidiaries of tui ag 1 8 289 332
other subsidiaries of tui ag 13 4 9 2
joint ventures and associates of tui ag 10 13 85 73
joint ventures of the g roup 41 47 132 75
associates of the g roup 15 17 14 24
total 88 96 533 512
income earned from tui ag includes airline revenue of £4m 2012 £3m and recharges of administrative costs of £4m 2012 £3m 
income earned from hotels 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 
£32m 2012 £35m 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 2012 £2m the remaining expenses paid to tui ag of £3m 2012 £4m relates 
to aircraft lease costs and licence fees 
in addition to the amounts disclosed above £10m 2012 £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 l td 
expenses relating to hotels and resort subsidiaries of tui ag joint ventures and associates of tui ag and joint ventures and associates  
of the g roup relate to travel related services primarily made up of accommodation and destination services costs
related party receivables
30 september 2013 30 september 2012
current
assets
£m
n oncurrent 
assets
£m
total
assets
£m
current
assets
£m
noncurrent
assets
£m
total
assets
£m
related party    
u ltimate parent tui ag 2 – 2 – – –
subsidiaries of tui ag 1 – 1 11 – 11 
joint ventures and associates of tui ag 6 1 7 5 – 5 
joint ventures of the g roup 43 35 78 30 34 64 
associates of the g roup 3 – 3 6 – 6 
total 55 36 91 52 34 86 
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fina ncial sta te me nts
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notes to the consolidated financial statements
continued
31 related party transactions continued
receivables due from related parties are reported in note 16 amounts owed from tui ag and its subsidiaries of £3m 2012 £11m 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 £35m 2012 £34m include a loan of us12m equating 
to £8m 2012 £7m including interest from tui travel holdings limited a direct subsidiary of the company to togebi holdings limited this loan 
is unsecured bears interest at a rate of 7 and is repayable by february 2017 the remaining balance due after more than one year principally 
comprises hotel prepayments made to the atlantica l eisure g roup of companies 
amounts owed by joint ventures that are due within one year of £43m 2012 £30m include accommodation costs due from togebi holdings 
limited and its subsidiaries of £15m 2012 £16m which were non interest bearing balances the remaining balance due within one year includes 
current hotel prepayments made to the atlantica l eisure g roup of companies
related party payables
30 september 2013 30 september 2012
current
liabilities
£m
n oncurrent 
liabilities
£m
total
liabilities
£m
current
liabilities
£m
noncurrent
liabilities
£m
total
liabilities
£m
related party   
u ltimate parent tui ag 7 – 7 8 – 8 
hotel and resort subsidiaries of tui ag 48 – 48 45 – 45 
joint ventures and associates of tui ag 11 – 11 19 – 19 
joint ventures of the g roup 26 1 27 10 11 21 
associates of the g roup 5 – 5 12 – 12 
total 97 1 98 94 11 105 
payables outstanding with related parties are reported in notes 20 21 and 23
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 2014 at the latest further details of the 
convertible bonds are given in note 20 
amounts payable to hotels and resorts 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 
details on interest rate and liquidity risks in respect of balances with related parties are included in notes 26e and 26f respectively
key management compensation 
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
year ended
30 september
2013
£m
year ended
30 september
2012
£m
short term employee benefits 9 9
termination benefits – 1 
postemployment benefits 1 1
sharebased payments 10 9
total 20 20
spanish tax case 
in connection with the settlement of the tax dispute in spain described in note 8 on 5 august 2013 arrangements were entered into between the 
company one of its subsidiaries tui travel accommodation and destinations sl u  and a former director of that subsidiary that individual a 
related party of the company by virtue of their position as a key member of management intends to plead guilty to a number of tax offences as 
part of the conclusion of the overall settlement at that time the subsidiary will have settled the outstanding balance of claimed tax interest and 
penalties the arrangements include agreement to indemnify the individual against and not to seek future recovery of the amounts payable 
agreement to pay the individual’s legal costs and certain variations to the individual’s terms of service the indemnity and agreement regarding 
recovery from the individual in relation to the penalties was given as the board considered these to be matters for the companies involved in 
reaching the settlement in spain and concluding these arrangements the board took account of the fact that when the transactions were 
executed the law in spain permitted the tax authorities to take action only against individuals and not companies the board considered this to  
be a corporate liability and not an individual liability and therefore because the individual could have been any director of the relevant subsidiaries 
the identity of the individual is not considered to be relevant this legislation was changed in 2010 
for the purposes of related party transaction disclosure the aggregate value ascribed to the arrangements with the individual including the 
indemnity and waiver is £167m of which £131m is ascribed to the waiver ie the €15m penalty referred to in note 8 £01m represents legal 
costs paid and the balance is remuneration under the revised service contract payable in the ordinary course of their service over its anticipated 
life cash payments to the individual directly related to the settlement totalled approximately £01m for their legal costs
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strategic re port
 
bu sine ss and financial review
 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
32 principal operating subsidiaries
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 2013
subsidiary c ountry n ature of business
mainstream s ector
mainstream – uk  ireland
falcon leisure group overseas limited united kingdom t our operator
t homson a irways l imited united kingdom a irline
tui travel aviation finance limited united kingdom l easing company
tui uk limited united kingdom t our operator
tui uk retail limited united kingdom travel agent
mainstream – germany
berge  meer touristik gmbh g ermany t our operator
l’tur tourismus ag 70 g ermany t our operator
tui aviation gmbh g ermany l easing company
tui d eutschland g mbh g ermany t our operator
tui leisure travel gmbh g ermany travel agent
tuifly gmbh g ermany a irline
mainstream – n ordics
f ritidsresor a b sweden t our operator
oy finnmatkat ab f inland t our operator 
star t our a s denmark t our operator
startourstjernereiser a s n orway t our operator
tuifly nordic ab sweden a irline
mainstream – france
c orsair sa f rance a irline
tui f rance sa s f rance t our operator
mainstream – other
jeta ir nv belgium t our operator
tt hotels turkey otel hizmetleri turizm ve ticaret anonim sirketi turkey h otel operator
tui suisse ag switzerland t our operator
tui a irlines belgium nv belgium a irline
tui a irlines n ederland bv n etherlands a irline
tui a ustria h olding g mbh austria t our operator
tui n ederland nv n etherlands t our operator
tui poland sp zoo poland t our operator
accommodation  destinations s ector
l ima t ours sa c  peru t our operator
a siarooms pte l td singapore online travel agent
beds on l ine slu spain accommodation wholesaler
blue travel partner services sa 99 d ominican r epublic inbound services
club turavia sa de cv mexico accommodation wholesaler
h otelbeds d ominicana sa d ominican r epublic accommodation wholesaler
h otelbeds product slu spain accommodation wholesaler
h otelbeds slu spain accommodation wholesaler
h otelbeds spain slu spain accommodation wholesaler
hotelbeds uk limited united kingdom accommodation wholesaler
h otelbeds u sa  inc u sa accommodation wholesaler
intercruises shoreside  port services inc u sa inbound services
intercruises shoreside  port services slu spain inbound services
l ate r ooms l imited united kingdom online travel agent
pacific world singapore pte limited singapore inbound services
t ransfara gencia de v iagens e t urismo u nipessoal lda portugal inbound services
tui hellas travel tourism and airlines ae g reece inbound services
tui portugala gencia de v iagens e t urismo sa portugal inbound services
tui españa t urismo sa spain inbound services
u ltramar express t ransport sa spain inbound services
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continued
32 principal operating subsidiaries continued
subsidiary c ountry n ature of business
s pecialist  activity s ector
c rown blue l ine l imited united kingdom t our operator
crown travel limited united kingdom t our operator
elc english l imited united kingdom l anguage teaching
exodus travels limited 60 united kingdom t our operator
fanfirm pty limited australia t our operator
f irst c hoice sailing inc u sa t our operator
gullivers sports travel limited united kingdom t our operator
hayes  jarvis travel limited united kingdom t our operator
headwater holidays limited 60 united kingdom t our operator
intrepid travel pty ltd 60 australia t our operator
mariner international travel inc u sa t our operator
peregrine adventures pty ltd 60 australia t our operator
porter and h aylett l imited united kingdom boat owning company
quark expeditions inc u sa t our operator
ski bound limited united kingdom t our operator
specialist holidays travel limited united kingdom t our operator
sunsail l imited united kingdom t our operator
sunsail worldwide sailing l imited united kingdom t our operator
tc s and starquest expeditions inc u sa t our operator
t he moorings l imited british v irgin islands t our operator
thomson sport uk limited united kingdom t our operator
travcoa corporation u sa t our operator
travel class limited united kingdom t our operator
travel turf inc u sa t our operator
travelmood limited united kingdom t our operator
trek america travel limited 60 united kingdom t our operator
tt ss l imited united kingdom t our operator
williment travel group limited n ew zealand t our operator
world c hallenge expeditions l imited united kingdom t our operator
world c hallenge expeditions pty l imited australia t our operator
your man t ours inc u sa t our operator
zegrahm expeditions inc u sa t our operator
 all subsidiaries except those marked with an asterisk are held indirectly by the company 
in addition to the ownership of 100 of the ordinary shares of the above listed principal operating subsidiaries the group also owns the following 
shares in these companies
principal operating subsidiary a dditional classes of shares
ski bound limited 167502 £1 ‘a’ ordinary shares
club turavia sa de cv 2317133 mxp1 variable shares
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33 earnings per share
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
basic and diluted earnings per share are as follows
earnings
2013
£m
 weighted
average no
of shares
2013 
millions
earnings
per share
2013
pence
earnings
2012
£m
w eighted
average no
of shares
2012
millions
earnings
per share
2012
pence
basic earnings per share 60 1110 54 138 1108 125
effect of dilutive options – 8 – 10
diluted earnings per share 60 1118 54 138 1118 123
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 
alternative measures of earnings per share
earnings
2013
£m
 weighted
average no
of shares
2013 
millions
earnings
per share
2013
pence
earnings
2012
£m
w eighted
average no
of shares
2012
millions
earnings
per share
2012
pence
basic earnings per share 60 1110 54 138 1108 125
acquisition related expenses and impairments 253 – 92 –
separately disclosed items 24 – 92 –
t ax base difference 5 – 36 –
basic underlying earnings per share 342 1110 308 286 1108 258
effect of dilutive options – 8 – 10
effect of convertible bond net of tax 49 205 47 205
diluted underlying earnings per share 391 1323 296 333 1323 252
t he tax base difference primarily represents the difference between the actual charge in the consolidated income statement including tax on the 
profits of joint ventures and associates and the group’s underlying tax charge as disclosed below the dilutive effect of the convertible bonds is 
included solely to calculate diluted underlying earnings per share
reconciliation of profit for the year from continuing operations attributable  
to ordinary shareholders from continuing operations
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
profit attributable to ordinary shareholders from continuing operations 60 138
r esult attributable to noncontrolling interests from continuing operations 3 1
profit for the year from continuing operations 63 137
n ongaa p measure
reconciliation of underlying operating profit to underlying earnings
n ote
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
underlying operating profit 589 490 
net underlying financial expenses 5 116 100
underlying profit before tax 473 390 
underlying tax charge at 27 2012 27 128 105
underlying profit for the year 345 285 
attributable to ordinary shareholders 342 286 
attributable to noncontrolling interests 3 1 
underlying profit for the year 345 285 
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notes to the consolidated financial statements
continued
34 c apital management
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 short term debt facilities 
that are appropriate for the seasonality of the business 
the group has a roadmap to deliver sustainable long term value to shareholders with a return on invested capital roic greater than the group’s 
posttax weighted average cost of capital progress in achieving this objective has been made during this year by improving underlying operating 
profit which increases roic to 148 2012 122
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
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 n ote
year ended
30 s eptember
2013
£m
year ended
30 september
2012
£m
underlying operating profit c onsolidated income statement 589 490 
taxation at the underlying effective rate of 27 2012 27 159 132
underlying n opat 430 358 
n et assets c onsolidated balance sheet 1491 1609 
n et debt 27a – 108
seasonal net debt adjustment 320 400 
cumulative goodwill impairment charge 378 190 
defined benefit pension net deficit 6c 661 648
invested c apital 2850 2955 
average invested capital 2903 2936 
roic 148 122 
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 cashdebt 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 2013 none of these requirements place any significant restriction on the group’s funding or operations
35 post balance sheet events
on 19 november 2013 the group announced that it had agreed to sell 874 of its interest in the airline group limited a shareholder in uk air 
traffic controller nats holdings limited for cash consideration of approximately £38 million the transaction is expected to complete during the 
first quarter of calendar year 2014 subject to clearance from the european commission also on 19 november 2013 the group announced that it 
had completed an order for two additional boeing 7878 dreamliner aircraft from the boeing company boeing at a significant discount to the 
list price as a result of various concessions allowances and support from boeing at current list prices the value of two boeing 7878 dreamliner 
aircraft is 422 million £264 million 
36 ultimate parent company
the ultimate parent company is considered to be tui ag a company registered in berlin and hanover federal republic of germany 
at 30 september 2013 tui ag was the beneficial owner of 5448 of the 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 2013
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
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other matters on which we are required to report 
by exception
adequacy of accounting records and information and 
explanations received
u nder the c ompanies 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 parent 
c ompany or returns adequate for our audit have not been received 
from branches not visited by us or
•	 the 	 par ent 	 c ompan y 	 financial 	 stat ement s 	 and 	 the 	 par t 	 of 	 the	
d irectors’ r emuneration r eport to be audited are not in agreement 
with the accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
u nder the c ompanies act 2006 we are required to report if in our 
opini on 	 c er tain 	 disclosur es 	 of 	 dir ec t ors ’ 	 r emunerati on 	 specified 	 b y 	 la w	
have not been made we have no exceptions to report arising from this 
responsibility
other information in the annual report
u nder isa s u k  ireland we are required to report to you if in our 
opinion information in the annual r eport is
•	 materially inconsistent with the information in the audited parent 
c ompan y 	 financial 	 stat ement s 	 or
•	 apparently materially incorrect based on or materially inconsistent 
with our knowledge of the parent c ompany acquired in the course 
of performing our audit or
•	 is otherwise misleading
we have no exceptions to report arising from this responsibility
our responsibilities and those of the directors 
a s explained more fully in the d irectors’ r esponsibilities statement set 
out on page 102 the d irectors are responsible for the preparation of 
the 	 par ent 	 c ompan y 	 financial 	 stat ement s 	 and 	 f or 	 being 	 satisfied 	 that	
they give a true and fair view 
our responsibility is to audit and express an opinion on the parent 
c ompan y 	 financial 	 stat ement s 	 in 	 a c c or danc e 	 with 	 applicable 	 la w 	 and	
isa s u k  ireland t hose standards require us to comply with the 
auditing practices board’s ethical standards for auditors 
t his report including the opinions has been prepared for and only 
for the c ompany’s members as a body in accordance with c hapter 3  
of part 16 of the c ompanies 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
other matter
w e 	 ha v e 	 r epor t ed 	 separat ely 	 on 	 the 	 gr oup 	 financial 	 stat ement s	 
of tui t ravel plc for the year ended 30 september 2013
roger de peyrecave s enior s tatutory auditor
for and on behalf of pricewaterhousec oopers ll p
c hartered accountants and statutory auditors
l ondon
9 d ecember 2013
report on the parent company financial statements
our opinion 
in 	 o ur 	 opin i on 	 the 	 par ent 	 c ompan y 	 financial 	 stat ement s
•	 give a true and fair view of the state of the parent c ompany’s  
affairs as at 30 september 2013
•	 have been properly prepared in accordance with u nited kingdom 
g enerally accepted accounting practice and
•	 have been prepared in accordance with the requirements of the 
c ompanies act 2006
t his opinion is to be read in the context of what we say below
what we have audited
the 	 par ent 	 c ompan y 	 financial 	 sta t ement s 	 which 	 ar e 	 pr epar ed	 
by tui t ravel plc  comprise
•	 the parent c ompany balance sheet as at 30 september 2013
•	 the 	 not es 	 t o 	 the 	 par ent 	 c ompan y 	 financial 	 stat ement s 	 which	
include 	 a 	 summar y 	 o f 	 sign ificant 	 a c c o untin g 	 policies 	 and 	 other	
explanatory information
the 	 financial 	 r epor tin g 	 framew ork 	 tha t 	 has 	 been 	 applied 	 in 	 their	
preparation comprises applicable law and u nited kingdom accounting 
standards u nited kingdom g enerally accepted accounting practice
in 	 applyin g 	 the 	 financial 	 r epor tin g 	 framew ork  	 the 	 dir ec t ors 	 ha v e 	 made	
a 	 number 	 o f 	 subjec tiv e 	 jud gment s 	 f or 	 example 	 in 	 r espec t 	 of 	 significant	
accounting estimates in making such estimates they have made 
assumptions and considered future events
c er ta in 	 disclosur es 	 r equir ed 	 b y 	 the 	 financial 	 r epor ting 	 frame w ork 	 ha v e	
been presented elsewhere in the a nnual r eport  accounts the 
‘ annual 	 r epor t ’ 	 ra ther 	 than 	 in 	 the 	 no t es 	 t o 	 the 	 financial 	 stat ement s	
these 	 ar e 	 cr ossr ef er enc ed 	 fr om 	 the 	 financial 	 stat ement s 	 and 	 ar e	
identified 	 as 	 a udit ed
what an audit of financial statements involves 
we conducted our audit in accordance with international standards on 
auditing u k and ireland ‘isa s u k  ireland’ an audit involves 
obta in in g 	 e videnc e 	 abo ut 	 the 	 amo unt s 	 and 	 disclosur es 	 in 	 the 	 financial	
sta t ement s 	 suf ficient 	 t o 	 giv e 	 r easonable 	 assuranc e 	 that 	 the 	 financial	
statements are free from material misstatement whether caused by 
fraud or error t his includes an assessment of
•	 whether the accounting policies are appropriate to the parent 
c ompany’s circumstances and have been consistently applied 
and adequately disclosed
•	 the 	 r easonableness 	 o f 	 sign ificant 	 a c c o untin g 	 estimat es 	 made 	 b y	
the d irectors and 
•	 the 	 o v erall 	 pr esenta ti on 	 o f 	 the 	 financial 	 sta t ement s	
i n 	 a dd iti on 	 w e 	 r ea d 	 a l l 	 the 	 fina ncia l 	 a nd 	 non fina ncia l 	 in f orma ti on 	 in 	 the	
annual r eport to identify material inconsistencies with the audited 
par ent 	 c ompan y 	 financial 	 sta t ement s 	 and 	 t o 	 identif y 	 an y 	 inf ormati on	
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
opinions on matters prescribed by the c ompanies act 2006
in our opinion
•	 t he information given in the strategic r eport and the d irectors’ 
r epor t 	 f or 	 the 	 financial 	 y ear 	 f or 	 wh ich 	 the 	 par ent 	 c ompan y 	 financial	
statements are prepared is consistent with the parent c ompany 
fi n a nc i a l 	 st a t e me n t s 
•	 t he part of the d irectors’ r emuneration r eport to be audited has 
been properly prepared in accordance with the c ompanies act 2006
independent a uditors’ report to the members of tui t ravel plc
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n ote
30 s eptember
2013
£m
30 september
2012
£m
fixed assets
investments d 1261 1255 
c urrent assets
d ebtors amounts falling due after more than one year e 44 –
d ebtors amounts falling due within one year f 183 156
c ash at bank 257 250 
484 406 
c reditors amounts falling due within one year g 129 197
n et current assets 355 209 
t otal assets less current liabilities 1616 1464 
c reditors amounts falling due after more than one year h 973 950
provision for liabilities i 5 18
n et assets 638 496 
c apital and reserves
c alled up share capital j 112 112 
profi t 	 an d 	 lo s s 	 account k 406 263 
c onvertible bond reserve k 91 88 
other reserves k 29 33 
t otal shareholders’ funds k 638 496 
the 	 financial 	 sta t ement s 	 on 	 pa g es 	 1 7 6 	 t o 	 1 8 1 	 w er e 	 appr o v ed 	 b y 	 a 	 duly 	 a uthorised 	 c ommit t ee 	 of 	 the 	 boar d 	 of 	 dir ec t ors 	 on 	 9 	 dec ember 	 2 0 1 3 	 and	
were signed on its behalf by
peter j long         william h waggott
ch ief 	 e x ecutiv e	 	 	 	 	 	 	 	 	 chief 	 financial 	 of fic er
c ompany number 6072876
the 	 not es 	 on 	 pa g es 	 1 77 	 t o 	 1 8 1 	 f orm 	 par t 	 o f 	 these 	 financial 	 stat ement s
c ompany balance sheet
for the year ended 30 september 2013
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c onvertible bonds
t he convertible bonds are split into two components a debt 
component and a component representing the embedded derivatives 
in the bond t he debt component represents the g roup’s liability 
for future interest coupon payments and the redemption amount  
t he embedded derivatives represent the value of the option that 
bondholders have to convert into ordinary shares of the c ompany 
t hese derivatives were valued on inception and recognised in the 
convertible bond reserve in equity
t he 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 
c orresponding 	 charge 	 t o 	 financ e 	 c ost  	 the 	 debt 	 c omponent 	 decreases	
by the cash interest coupon payments made t he 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 
instrument s 	 ar e 	 first 	 r ec o gnised
s harebased payments
t he c ompany operates sharebased payment schemes for the 
employees of the c ompany and its subsidiaries t he fair value of 
shares awarded to employees is an employee expense and is borne by 
fellow g roup subsidiaries t he fair value is measured at the award date 
and is spread over the period during which the employee becomes 
unconditionally entitled to the awards c alculating the fair value takes 
into account various factors including the expected volatility of the 
shares the dividend yield and the risk free interest rate
t he c ompany 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 
shar ebased 	 payment 	 charg e 	 r ec o gnised 	 in 	 it s 	 subsidiaries ’ 	 financial	
statements with the corresponding credit being recognised directly in 
equity t he increase in investments and credit to equity for the year 
ended 30 september 2013 is £15m 2012 £11m f urther information 
on the share schemes is provided in n ote 6d to the consolidated 
fi n a nc i a l 	 st a t e me n t s 	
an y 	 transa c ti ons 	 of 	 the 	 c ompan y’ s 	 employ ee 	 benefit 	 t rust 	 ar e	
included 	 in 	 the 	 c ompan y’ s 	 financial 	 stat ement s 	 in 	 par ticular  	 the	
t rust‘s purchases and sales of shares in the c ompany are debited and 
credited directly to equity
related parties
f or 	 the 	 purpose 	 of 	 these 	 financial 	 stat ement s 	 par ties 	 ar e 	 c onsider ed	
to be related to the c ompany if the c ompany has the ability directly or 
indir ec tly  	 t o 	 c ontr ol 	 the 	 par t y 	 or 	 ex er cise 	 significant 	 influenc e	 o v er 	 the	
par t y 	 making 	 financial 	 and 	 operating 	 decisi ons 	 or 	 vic e 	 v ersa 	 or 	 wher e	
the c ompany and the party are subject to common control or common 
significant 	 influenc e 	 r elat ed 	 par ties 	 may 	 be 	 individuals 	 or 	 entities	 
t he c ompany has taken advantage of the exemption contained within 
fr s 8 and has not therefore disclosed transactions or balances with 
entities which are whollyowned subsidiaries
a  accounting policies 
basis of preparation
t he following accounting policies have been applied consistently in 
dealing with items which are considered material in relation to the 
c ompan y’ s 	 financial 	 sta t ement s 	 the 	 c ompan y’ s 	 financial 	 stat ement s	
are presented in the c ompany’s presentational currency of sterling 
rounded to the nearest million
accounting convention
the 	 financial 	 sta t ement s 	 ha v e 	 been 	 pr epar ed 	 in 	 a c c or danc e 	 with 	 the	
c ompanies act 2006 and applicable u k accounting standards and 
under 	 the 	 h ist orical 	 c ost 	 c on v enti on 	 as 	 modified 	 f or 	 derivativ e 	 financial	
instrument s 	 and 	 c on v er tible 	 bonds 	 the 	 financial 	 stat ement s 	 ha v e	
been prepared on the going concern basis which assumes that the 
c ompany will continue in operational existence for the foreseeable 
future t he c ompany has taken advantage of the exemption under 
section 408 of the c ompanies act 2006 from presenting its own  
pr ofit 	 and 	 loss 	 a c c o unt  	 the 	 pr ofit 	 a f t er 	 tax 	 included 	 in 	 the 	 financial	
statements of the c ompany determined in accordance with the act 
was £270m 2012 £114m 
foreign currencies
t ransactions 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 f oreign exchange differences arising on translation are 
recognised in the income statement n onmonetary 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 n onmonetary assets and liabilities denominated in 
foreign currencies that are stated at fair value are translated to  
sterling at foreign exchange rates ruling at the dates the fair values 
were determined 
investments
investments in subsidiaries are stated at cost less provision for 
impairment d ividends received and receivable are credited to the 
c ompan y’ s 	 pr ofit 	 and 	 loss 	 a c c o unt 	 on 	 the 	 da t e 	 of 	 r ec eipt 
interestbearing borrowings
interestbearing borrowings are recognised initially at fair value less 
attributable transaction costs subsequent to initial recognition 
interestbearing borrowings are stated at amortised cost with any 
differences between cost and redemption value being recognised  
in the income statement over the period of the borrowings on an 
effective interest rate basis
classification of financial instruments issued
f inancial instruments issued by the c ompany are treated as equity 
only to the extent that they meet the following two conditions t he 
fir st 	 c ondition 	 is 	 that 	 the y 	 include 	 no 	 c ontr ac tual 	 oblig ation 	 upon 	 the	
compan y 	 t o 	 deliv er 	 c ash 	 or 	 other 	 financial 	 as set s 	 or 	 t o 	 ex change	
financial 	 as set s 	 or 	 financial 	 liabilities 	 with 	 another 	 par t y 	 under	
conditions that are potentially unfavourable to the c ompany t he 
second condition is that where the instrument will or may be settled 
in the c ompany’s own equity instruments it is either a nonderivative 
that includes no obligation to deliver a variable number of the 
c ompany’s own equity instruments or is a derivative that will be 
set tled 	 b y 	 the 	 compan y  	 ex changing 	 a 	 fix ed 	 amount 	 of 	 c ash 	 or 	 other	
financial 	 as set s 	 f or 	 a 	 fix ed 	 number 	 of 	 it s 	 o wn 	 equit y 	 instrument s 
no t e s 	 t o 	 t h e 	 c o m p an y’ s 	 fi n an c i al 	 sta t e m e nts
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no t e s 	 t o 	 t h e 	 c o m p an y’ s 	 fi n an c i al 	 sta t e m e nts	 
continued
additions in the year of £145m comprise the following increases in 
investments £88m increase in the cost of investment into tui f rance 
sa s during the year for the purposes of recapitalising the g roup’s 
f rench business £42m increase in the cost of investment into tui 
t ravel overseas h oldings l imited and £15m of sharebased payment 
liabilities incurred t he costs of the sharebased schemes which are 
operated for employees of the c ompany’s subsidiaries are borne by 
the subsidiaries subject to local accounting standards t he c ompany 
recognises an increase in the investment in the subsidiary and a credit 
to other reserves in accordance with fr s 20 ‘sharebased payments‘ 
d etails of the principal operating subsidiaries held directly and 
indirectly by the c ompany in the year ended 30 september 2013  
can 	 be 	 f ound 	 in 	 not e 	 3 2 	 of 	 the 	 c onsolidat ed 	 financial 	 stat ement s	
included within the total impairment charge of £139m is a £6m 
impairment charge of the investment in r eal t ravel l imited due to the 
fall in value of this company as the demand for gap year travel has 
decreased over the last year and the future outlook for this business  
is 	 c onsider ed 	 t o 	 be 	 less 	 pr ofitable 	 than 	 pr e vi ously 	 expec t ed 	 an	
impairment of £133m 2012 £300m has been charged in the year in 
respect of the cost of investment into tui f rance sa s following the 
recapitalisation during the year and the outcome from the g roup’s 
annual impairment exercise
t he investment into tui f rance sa s principally relates to two cgu s 
that are the same as those used in the g roup’s annual impairment test 
t hese two cgu s are the f rench tour operator and the f rench airline 
c orsair d etailed disclosure of the impairment test and the basis for 
calculati on 	 ha v e 	 been 	 set 	 out 	 in 	 not e 	 1 0 	 of 	 the 	 c onsolidat ed 	 financial	
statements t he cost of investment has been compared against the 
value in use of c orsair and the f rench tour operator using discounted 
cash 	 flo ws	 as 	 a 	 basis 	 of 	 measur ement 	
t he calculation of recoverable value for these two cgu s uses the 
following assumptions
•	 cash 	 flo w	 pr o jec ti ons 	 based 	 on 	 the 	 gr oup ’ s 	 lat est 	 boar d 	 appr o v ed	
three year business plan which management has extended by two 
y ears 	 t o 	 cr eat e 	 a 	 fiv e 	 y ear 	 plan 	
•	 cash 	 flo ws	 be y ond 	 the 	 plan 	 peri od 	 ar e 	 ex trapolat ed 	 using 	 a 	 r eal	
growth rate of 175 2012 18 
•	 cash 	 flo ws	 include 	 the 	 impa c t 	 of 	 w orking 	 capital 	 in 	 both 	 the 	 asset	
base 	 and 	 the 	 impa c t 	 on 	 cash 	 flo ws	 o v er 	 the 	 plan 	 peri od  	 and
•	 cash 	 flo ws	 ar e 	 disc ount ed 	 using 	 the 	 gr oup ’ s 	 w a c c 	 adjust ed 	 as	
appr opriat e 	 f or 	 business 	 specific 	 fa c t ors 	 such 	 as 	 business 	 risk 	 
t he riskadjusted pretax wacc for these two cgu s was 10 
2012 11
t he calculation of recoverable value for r eal t ravel l imited uses the 
same 	 assumpti ons 	 as 	 abo v e  	 ex c ept 	 that 	 the 	 cash 	 flo ws	 be y ond 	 the	
plan period are extrapolated using a real growth rate of 22
t axation
the 	 charg e 	 f or 	 taxa ti on 	 is 	 based 	 on 	 the 	 pr ofit 	 or 	 loss 	 f or 	 the 	 peri od	
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 t iming 
differences arise when items of income and expenditure are included 
in tax computations in periods different from their inclusion in the 
fi n a nc i a l 	 st a t e me n t s 
dividends on shares presented within shareholders’ funds
d ividends distributed to the c ompany’s shareholders are recognised  
as 	 a 	 liabilit y 	 and 	 deduc t ed 	 fr om 	 equit y 	 in 	 the 	 c ompan y’ 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 c ompany u npaid dividends that do not meet these 
crit eria 	 ar e 	 disclosed 	 in 	 the 	 no t es 	 t o 	 the 	 financial 	 stat ement s
auditors’ remuneration
t he c ompany’s 2013 audit fee was £26000 2012 £25000
b directors’ remuneration and employees
d etails of d irectors’ remuneration gains made by them on vesting of 
share awards amounts receivable by them under long term incentive 
schemes and pension entitlements in the current and prior years are 
contained in the audited section of the d irectors’ r emuneration 
r epor t 	 and 	 in 	 no t e 	 6 	 o f 	 the 	 c onsolida t ed 	 financial 	 stat ement s 	 details	
of all share awards issued by the c ompany are given in n ote 6d of 
the 	 c onsolida t ed 	 financial 	 sta t ement s 	 all 	 dir ec t ors ’ 	 r emunerati on 	 is	
borne by subsidiary companies 
c  dividends
d etails of dividends paid and proposed by the c ompany in the current 
and prior year and details of dividends proposed subsequent to the 
balanc e 	 sheet 	 da t e 	 ar e 	 giv en 	 in 	 no t e 	 9 	 o f 	 the 	 c onsolidat ed 	 financial	
statements
d investments
shares in
subsidiaries
£m
c ost
at 1 october 2012 1589 
additions 145
d isposals 5
at 30 s eptember 2013 1729
provision for impairment
at 1 october 2012 334
impairment 139
d isposals 5
at 30 s eptember 2013 468
n et book value
at 30 september 2012 1255
at 30 s eptember 2013 1261
25financialxindepxauditxopinionv33 copyindd   178 13122013   1805 179 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
 
strategic re port
 
bu sine ss and financial review
 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
e debtors amounts falling due after more than one year
30 s eptember
2013
£m
30 september
2012
£m
a mounts owed by g roup undertakings 44 –
amounts owed by g roup undertakings at 30 september 2013 are unsecured bear no interest and are due for repayment on 22 may 2018
f debtors amounts falling due within one year
30 s eptember
2013
£m
30 september
2012
£m
a mounts owed by g roup undertakings 58 50
c orporation tax recoverable 118 98
prepayments 7 8
t otal 183 156
amounts owed by g roup undertakings at 30 september 2013 are unsecured and comprise £8m 2012 £6m that bears interest at l loyds bank 
fiv e 	 y ear 	 swap 	 ra t e 	 plus 	 a 	 margin 	 o f 	 2 2 5  	 and 	 has 	 no 	 fix ed 	 dat e 	 of 	 r epayment 	 and 	 £ 5 0m 	  2 0 1 2  	 £ 4 4m  	 that 	 bears 	 no 	 int er est 	 and 	 is 	 r epayable	 
on demand 
g c reditors amounts falling due within one year
30 s eptember
2013
£m
30 september
2012
£m
bank loans 2 1
d eferred and contingent consideration – 1
a mounts owed to g roup undertakings 109 176
accruals and deferred income 18 19
t otal 129 197
amounts owed to g roup undertakings include £28m 2012 £28m that bears interest at the three month sterling li bor rate plus 185 basis points 
and is repayable on demand subject to the borrower or the lender giving seven days‘ notice a ll other amounts owed to g roup undertakings are 
unsecur ed 	 int er est 	 fr ee  	 ha v e 	 no 	 fix ed 	 da t e 	 o f 	 r epayment 	 and 	 ar e 	 r epayable 	 on 	 demand	
h c reditors amounts falling due after more than one year
30 s eptember
2013
£m
30 september
2012
£m
c onvertible bonds 697 675
bank loans 6 5 
a mounts owed to g roup undertakings 270 270
t otal 973 950
deta ils 	 of 	 the 	 c on v er tible 	 bonds 	 ar e 	 giv en 	 in 	 not e 	 2 0 	 of 	 the 	 c onsolidat ed 	 financial 	 stat ement s 	 the 	 a c c ounting 	 under 	 uk 	 ga ap 	 and 	 ifrs 	 is 	 the	
same
amounts owed to g roup undertakings comprise a loan of £269m 2012 £269m and interest payable of £1m 2012 £1m t he loan bears interest 
at li bor plus a margin of 5 per annum is unsecured and is repayable by 31 march 2026 
i provision for liabilities
£m
deferred tax 
other timing differences 5
t otal provision for liabilities 5
at 1 october 2012 18
de fer re d 	 t a x 	 credi t 	 to 	 pro fi t 	 and 	 lo s s 	 account 10
d eferred tax credit to equity 3
at 30 s eptember 2013 5
other timing differences comprise deferred tax on sharebased payments and the equity portion of the convertible bonds
25financialxindepxauditxopinionv33 copyindd   179 13122013   1805 180 tui travel p l c annu al re po rt  acc ounts 2013
fina ncial sta te me nts
tt 14  ar 2013  13122013  artwork
j c alled up share capital
30 s eptember
2013
£m
30 september
2012
£m
issued and fully paid
1118010670 2012 1118010670 ordinary shares of 10p each 112 112
t otal 112 112
a s 	 described 	 mor e 	 fully 	 in 	 no t e 	 3 6 	 the 	 ultima t e 	 par ent 	 c ompan y  	 tui 	 a g 	 is 	 the 	 beneficial 	 o wner 	 of 	 5 4 48 	  2 0 1 2  	 5 6 2 6   	 of 	 the 	 c ompan y’ s	
issued ordinary share capital as at 30 september 2013
a t 	 30 	 sept ember 	 2 0 1 3  	 804 7  5 7 5 	 shar es 	  2 0 1 2  	 9  5 4 5  9 5 1 	 shar es  	 w er e 	 held 	 b y 	 the 	 gr oup ’ s 	 employ ee 	 benefit 	 t rust  	 based 	 on 	 the 	 30 	 sept ember	
2013 share price of £368 2012 £234 the value of shares held was £29615076 2012 £22336683 
deta ils 	 o f 	 dividends 	 debit ed 	 t o 	 equit y 	 in 	 the 	 y ear 	 ar e 	 set 	 out 	 in 	 not e 	 9 	 of 	 the 	 c onsolidat ed 	 financial 	 stat ement s 	 whilst 	 the 	 c ompan y 	 has 	 the	
authority to purchase its own shares it has not done so in either the current or prior years
k c apital and reserves
c alled up 
share
capital
£m
p r o fi t 	 a n d
loss account
£m
c onvertible
bond reserve
£m
other
reserves
£m
t otal
shareholders’
funds 
£m
at 1 october 2011 112  277 85 26  500 
d isposal on award of shares – 9 – 4 5
sharebased payment costs net of deferred tax – – – 11 11
t ransfer from sharebased payment reserve to retained earnings 8 – 8 –
pro fi t 	 for 	 t h e 	 fi n an ci al 	 y ear – 114 – – 114 
f oreign exchange on net investment hedge – 2 – – 2
effect of rate change on convertible bond – – 3 – 3 
d ividends paid – 125 – – 125
at 30 september 2012 112 263 88 33 496 
d isposal on award of shares – 3 – 19 16
sharebased payment costs net of deferred tax – – – 15 15
pro fi t 	 for 	 t he 	 fi n an ci al 	 y ear – 270 – – 270
effect of rate change on convertible bond – – 3 – 3 
d ividends paid – 130 – – 130
at 30 s eptember 2013 112 406 91 29 638 
no t e s 	 t o 	 t h e 	 c o m p an y’ s 	 fi n an c i al 	 sta t e m e nts	 
continued
25financialxindepxauditxopinionv33 copyindd   180 13122013   1805 181 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
 
strategic re port
 
bu sine ss and financial review
 
d irect or s’ re port
 
financial statements
 
shareh older inf ormati on
l  c ontingent liabilities
t here were contingent liabilities at 30 september 2013 in respect 
of guarantees and indemnities entered into as part of the ordinary 
course of the g roup’s business t hese guarantees cover payables 
by the c ompany’s subsidiaries for items such as insurance and 
credit facilities car leases aviation fuel ground handling and 
airport services t he c ompany has also guaranteed the contractual 
obligations of various subsidiary companies in respect of the supply 
o f 	 a 	 number 	 o f 	 the 	 gr o up ’ s 	 a ir cra f t 	 fleet 	 no 	 mat erial 	 losses 	 ar e	
currently expected to be incurred by the c ompany from such 
contingent liabilities 
where 	 the 	 compan y 	 ent er s 	 int o 	 financial 	 g uar ant ee 	 c ontr ac t s 	 in	
order to guarantee the indebtedness of other companies within its 
g roup the c ompany considers these to be insurance arrangements 
and accounts for them as such in this respect the c ompany treats 
the guarantee contract as a contingent liability until such time as it 
becomes probable that the c ompany will be required to make a 
payment under the guarantee at 30 september 2013 the c ompany 
had contingent liabilities in respect of counterguarantees for letters 
of credit amounting to £136m 2012 £162m
t he c ompany is an obligor to the g roup’s revolving credit facilities 
totalling £1120m details of which are set out in n ote 26f  at 
30 september 2013 the drawndown portion of this facility was £nil 
2012 £nil 
u nder the terms of guarantees given to the c ivil aviation authority 
and other relevant authorities by the c ompany in respect of certain 
subsidiaries in the event of default the c ompany could be held liable 
to the extent of the subsidiaries’ net trading liabilities at the time of 
default
n o amount is recognised in the c ompany’s balance sheet in respect  
of any of the above guarantees as it is not probable that there will be 
an 	 o ut flo w	 o f 	 r eso ur c es
t he c ompany 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 
w here 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 n ote d
t he c ompany 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 
t he d irectors consider that adequate provision has been made for  
all known liabilities
t he c ompany has provided certain wholly owned u k subsidiaries 
with guarantees such that they can take an exemption from the 
requirement 	 t o 	 ha v e 	 their 	 single 	 entit y 	 financial 	 st at ement s 	 audit ed 	
t hese guarantees cover all outstanding liabilities of the following 
subsidiaries as at 30 september 2013 eac activity c amps l imited 
iexplore l imited manchester academy h oldings l imited 
manchester academy t eacher t raining u k l imited student 
skiing l imited t ravel c lass t ransport l imited and world c hallenge 
h oldings l imited 
m related party transactions
apart from with its own subsidiaries which are included in the 
c onsolidat ed 	 financial 	 stat ement s 	 tui 	 t ra v el 	 p l c  	 in 	 carr ying 	 out 	 it s	
ordinary business activities had transactions with its ultimate parent 
company tui ag  which delivered services to companies in the g roup 
expenses and interest payable to tui ag amounted to £nil in the year 
2012 £2m
in addition to the above a ntium f inance l td purchased £200m 
nominal value of the c ompany’s convertible bond 49 april 2017 
antium f inance l td is a special purpose entity independent of tui 
ag  tui ag entered into a forward purchase agreement with a ntium 
f inance l td 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 from antium f inance l td amounting 
to £10m per annum and to repurchase these bonds by july 2014 at 
the latest f urther details of the convertible bonds are given in n otes 
2 0 	 and 	 3 1 	 of 	 the 	 c onsolidat ed 	 financial 	 stat ement s	
n  post balance sheet events
d etails of post balance sheet events relevant to the g roup are given 
in 	 not e 	 3 5 	 of 	 the 	 c onsolidat ed 	 financial 	 stat ement s
25financialxindepxauditxopinionv33 copyindd   181 13122013   1805 182 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
shareholder information
ad 
accommodation  destinations sector
agm
annual general meeting
apac
asia pacific region
asp
average selling price
assetright
optimum mix of owned and leased assets
b2b
businesstobusiness
b2c
businesstoconsumer
bn 
billion
cagr
compound annual growth rate
cis
commonwealth of independent states
co
2
rpk
carbon dioxide emissions per revenue 
passenger kilometre
controlled distribution
owned and franchised retail shops 
call centre and website
coso
the committee of sponsoring 
organizations of the treadway 
commission
dabs 
deferred annual bonus scheme
direct distribution 
retail call centre and website
eps
earnings per share
ets 
european emissions trading scheme 
gdp 
gross domestic product
gmb 
group management board
ifrs 
international financial reporting 
standards
jv 
joint venture
kpis 
key performance indicators
lccs 
low cost carriers
load factor 
passenger volumes as a percentage 
of capacity
m 
million
merger 
the business combination of the tourism 
division of tui ag excluding certain hotel 
assets and first choice holidays plc
ota 
online travel agent
psp 
performance share plan
pwc 
pricewaterhousecoopers llp
roic 
return on invested capital
rpi 
retail price index
sas
specialist  activity sector
sector
subset of tui travel plc whose 
businesses share similar characteristics
summer season 
may to october
the board 
tui travel plc board of directors
the company 
tui travel plc
the group 
the tui travel plc group of companies
tsr 
total shareholder return
ttv 
total transaction value
tui ag 
tui travel plc’s majority shareholder
unique holidays
includes hotels and products that have 
been tailored to offer additional services 
and facilities to our customers
unwto 
united nations world travel organisation
vcsp 
value creation synergy plan
wacc 
weighted average cost of capital
winter season 
november to april
contacts and advisers
secretary and registered office
j walter
tui travel house
crawley business quarter
fleming way
crawley
west sussex rh10 9ql
telephone 01293 645700
facsimile 01293 645704
registered number 6072876
independent auditors
pricewaterhousecoopers llp
1 embankment place
london
wc2n 6rh
financial adviser
lazard
stockbrokers
barclays
bank of america merrill lynch
solicitors
herbert smith freehills
registrars and transfer office
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
company website
 wwwtuitravelplccom
financial calendar
annual general meeting 6 february 2014
interim results may 2014
preliminary results december 2014
glossary of key terms
26shareholderxinfoxandxindexv13 copyindd   182 13122013   1806  
strategic report
 
business and financial review
 
directors’ report
 
financial statements
 
sh areh older information
183 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
real gap
best price on the  wwwrealgapcouk website plus a further  
discount of 10 
itoi volunteering
best price on the  wwwitoicom website plus a further  
discount of 10
exodus
best land only price on the  wwwexoduscouk website  
plus a further 5 discount per adult
quark expeditions
best land only price on the  wwwquarkexpeditionscom  
website plus a further 5 discount per adult
skibound
best price on the  wwwskiboundholidayscouk website  
plus a further discount of £20 per adult to a maximum of  
£40 per booking on all our french club hotel destinations
  discounts are not valid on accommodationonly bookings and cannot be used in 
conjunction with any discretionary discounts group savings or other promotional  
offers
 discounts are not valid on accommodation or flightonly bookings and cannot  
be used in conjunction with other promotional offers including but not restricted  
to group discounts valid on charter flights to european destinations only 
in order to qualify for the discount private shareholders including 
those holding through a nominee account must hold at least 500 
ordinary shares in the company on the date of booking the holiday 
and must have been on the register of shareholders for a minimum 
period of one year on that date
to make a booking call us on 0844 800 3104 monday wednesday  
and friday 09001800hrs tuesday 10001800 hrs and saturday 
09001230hrs 
share dealing service
an executiononly sharedealing service for the purchase and sale of 
tui travel plc shares is available from equiniti equiniti is authorised 
and regulated by the financial services authority and is a member of 
the london stock exchange and plus 
for details please contact
equiniti share dealing service 
suite 11  
3 minster court 
mincing lane 
london ec3r 7dd
telephone 0808 208 4433
find out more
tui travel plc has a corporate website which can be accessed  
through  wwwtuitravelplccom 
shareholder discount
eligible shareholders are entitled to the following discounts which  
are subject to change when booking holidays through our dedicated 
shareholder discount line the shareholder must be the lead name  
on the booking
best price on the dedicated website plus a further discount of £20  
per adult to a maximum of £40 per booking cruise shortmedium
haul destinations or £40 per adult to a maximum of £80 per booking 
longhaul destinations for the following
first choice   w w w  fir s t cho i c e c o  u k
thomson   wwwthomsoncouk
thomson worldwide  wwwthomsonworldwidecom
citalia   wwwcitaliacom 
jetsave  wwwjetsavecouk
meon villas   wwwmeonvillascom 
sovereign   wwwsovereigncom
hayes  jarvis  wwwhayesandjarviscouk
thomson lakes  mountains  wwwthomsonlakescouk
thomson ski  snowboarding  wwwthomsonskicouk
crystal ski  wwwcrystalskicouk
crystal summer  wwwcrystalsummercouk
thomson airways 
best price on the  wwwthomsoncouk website plus a further  
discount of £10 per person for a return journey shortmediumhaul 
destinations or £20 per person for a return journey longhaul 
destinations
h otelopia
best price on all hotels on the  wwwhotelopiacouk  
website plus an additional 14 discount
trek america 
best price on the website  wwwtrekamericacom  
plus an additional 10 discount
grand american
adventures best price on the website  
 wwwgrandamericanadventurescom  
plus an additional 10 discount
the moorings
best price on the  wwwmooringscom website plus a further 
discount of £20 per adult to a maximum of £40 per booking  
shorthaul destinations or £40 per adult to a maximum of  
£80 per booking longhaul destinations
sunsail
best price on the  wwwsunsailcouk website plus a further  
discount of £20 per adult to a maximum of £40 per booking  
shorthaul destinations or £40 per adult to a maximum of  
£80 per booking longhaul destinations
le boat
best price on the  wwwleboatcouk website plus a further discount 
of £20 per adult to a maximum of £40 per booking on all destinations 
26shareholderxinfoxandxindexv13 copyindd   183 13122013   1806 184 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork
index
a
accommodation   
destinations sector 12 61
accounting policies 112 177
acquisitions  55 147
annual general meeting  101
audit committee  73
auditors  101
b
balance sheet  109 176
board committees  68
board of directors  66
brands 6
business and financial review 54
business models 15
c
chairman’s statement  8
chief executive’s statement 9
company balance sheet 176
consolidated balance sheet 109
consolidated income statement 107
consolidated statement  
of cash flows 111
consolidated statement  
of changes in equity 110
consolidated statement  
of comprehensive income 108
contacts and advisers 182
corporate governance report  68
current trading 63
d
directors’ biographies 66
directors’ remuneration 79
directors’ report 66
directors’ responsibilities 102
dividends  56 139
e
earnings per share  56 173
emerging markets sector 61
f
financial calendar  182
financial highlights  ifc
financial statements 103
g
governance 68
group management board 34
group overview 4
group performance  54
growth levers 4 57
h
health  safety 52
i
independent auditors’ report 104 175
investment case 4
k
key performance indicators  38
m
mainstream sector 12 59
market overview 10
n
nomination committee  78
notes to the consolidated  
financial statements 112
o
operational highlights ifc
outlook 63
p
pensions  128
people 34
principal operating subsidiaries 171
principal risks 42
r
remuneration committee 68
remuneration report 79
s
segmental performance 59
separately disclosed items 55 126
shareholder discount 183
specialist  activity sector 12 62
strategic drivers  15 to 25
strategic overview 5 14 15
strategy 14 to 25
sustainable development 26
t
tax  64 138 149
total shareholder return  96
tui travel at a glance 4
w
where we operate 2
who we are 1
26shareholderxinfoxandxindexv13 copyindd   184 13122013   1837 tt14  ar 2013  12122013  artwork tt14  ar 2013  12122013  artwork
•	 r e c o r d 	 u n d e r l y i n g 	 o p e ra ti n g 	 p r o fi t 	 d e l i v e r e d  	 2 0 1 3 	 gr o wth 	 r o a d m a p	 
target exceeded
  underlying operating profit of £589m 2012 £490m an increase of 20  
over the prior year underlying operating profit increase of 13 to £555m  
on a constant currency basis 
  record mainstream underlying operating profits of £514m 2012 £420m
  underlying uk operating profit growth of 27 to £251m 2012 £197m  
with an operating margin increase of 110bp to 65 
  underlying german operating profit growth of 30 to £113m 2012 £87m  
with operating margin up 50bp to 27
  business improvement programme delivered higher than expected £46m  
of additional profit in the year 
  strong underlying earnings per share growth of 19 to 308p 2012 258p 
  statutory operating profit of £297m 2012 £301m with the reduction driven  
by a goodwill impairment of £188m relating to our specialist  activity business  
and french tour operator 
•	 mainstream growth driven by unique holidays direct distribution  
and o ne mainstream
  sales of highermargin unique holidays now 69 of mainstream holidays directly 
distributed holidays are 66 of mainstream holidays with online sales at 35
  record levels of customer satisfaction up two percentage points to 79 across  
our key markets
  our investment in the dig ital customer service proposition and our online platform  
is delivering clear benefits to our customers
•	 l everaging our global leadership position in accommodation wholesaler
  accommodation wholesaler continues to consolidate its global leadership position 
ttv growth of 23 to £1655m driven by a strong performance in asia and latin 
america
•	 d elivering increased shareholder value
  record cash flow generation with free cash flow of £427m an improvement  
of £122m the net cash position of £2m 2012 net debt of £142m provides 
further balance sheet strength
  cash conversion improved by 12 percentage points to 90 underlying roic 
improved by 26 percentage points to 148
  final dividend increase of 17 to 975p per share 2012 83p resulting in  
a full year dividend increase of 15 to 135p per share 2012 117p
•	 r obust current trading 
  overall winter 201314 trading is in line with our expectations with 60 of the 
programme sold
  pleased with summer 2014 trading despite strong comparatives from the prior year
  we remain confident of del ivering this year in line with our target to deliver  
7 to 10 underlying operating profit growth at constant currency over our  
fiveyear growth roadmap
  constant currency basis calculated by translating the 2013 results at 2012 exchange rates
 excludes restricted cash 
operational  financial highlights
r evenue 
£15051m
2012 £14460m 4
underlying  
o p e r at in g	p ro fi t
£589m
2012 £490m 20
u n d e r l y i n g 	p r o fi t 	 
before tax
£473m
2012 £390m 21
f r e e 	c a s h 	fl o w
£427m
2012 £305m 40
basic underlying  
earnings per share
308p
2012 258p 19
d ividend per share
135p
2012 117p 15
underlying results
1
statutory results
year ended 30 september
2013
£m
2012
£m
change

2013
£m
2012 
£m
revenue 15051 14460 4 15051 14460
operating profit 589 490 20 297 301
profit before tax 473 390 21 181 201
free cash flow
2
427 305 40 427 305
basic earnings per share pence 308 258 19 54 125
dividend per share pence 135 117 15 135 117
1
 underlying operating profit excludes separately disclosed items acquisition related expenses impairment of goodwill  
and available for sale financial assets and interest and taxation of results of the group’s joint ventures and associates
2
 restated to reflect the exclusion of restricted cash and predelivery payments
designed by boone design 
produced by magenta digital
printed in the uk by pureprint 
group on amadeus primo silk 
fsc
®
 certified paper
amadeus primo silk is certified 
fsc and is made using ecf  
pulp is manufactured according 
to iso 9001 and iso 14001
100 of the inks used are 
vegetable oil based 95 of  
press chemicals are recycled  
for further use and on average  
99 of any waste associated 
with this production will be 
recycled
photography supplied by  
tui travel plc businesses
tt14tuiar13coverawindd   2 13122013   1729 tt14  ar 2013  12122013  artwork tt14  ar 2013  12122013  artwork
tui travel p l c
tui travel house
crawley business quarter
fleming way
crawley
west sussex
rh10 9ql
t elephone 0044 01293 645700
wwwtuitravelplccom
a nn ual r epor t  acco un ts for the year ended 30 s eptember 2013
d riving sustainable growth
tui travel p l c  annual r eport  accounts for the year ended 30 september 2013
tt14tuiar13coverawindd   1 13122013   1729


Summary:
 tt14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
04 tui t ravel p lc a n n u a l	 r ep o r t	  	 a c c o u n t s	 201 3
tui	 t ravel	 at	 a	 glance
market overview
l eisure travel market
•	 2 0 1 2 	 sa w 	 i n t e r n a ti o n a l 	 a r r i va l s	
b r e a k 	 t h e 	 o n e 	 b i l l i o n 	 m a r k 	 f o r	
t h e 	 fi rst 	 t i m e 	 e v e r	
•	 t ra v e l 	 a n d 	 t o u r i s m 	 a c c o u n t s	 
f o r 	 9 	 o f 	 gl o b a l 	 g d p 	 a n d	 
1 	 i n 	 1 1 	 j o b s 	 w o r l d w i d e
•	 m a r k e t 	 gr o w t h 	 ra t e 	 o f 	 4 	
d u r i n g 	 2 0 1 2 	 a n d 	 c o n ti n u e s 	 t o	
b e 	 o n e 	 o f 	 t h e 	 w o r l d’ s 	 fa st e st	
gr ow i n g 	 se cto rs
•	 an 	 a v e ra ge 	 gr o w th 	 ra t e 	 o f 	 4 	
s i n c e 	 1 99 5 	 a n d 	 se t 	 t o 	 c o n ti n u e
•	 d e m a n d 	 r e m a i n s 	 str o n g	 
f o r 	 l e i s u r e 	 t ra v e l 	 d e s p i t e	 
an 	 un c e r ta i n 	 e c onomic	
e n v ir on m e nt
•	 co n t i n u e s 	 t o 	 b e 	 d r i v e n 	 b y	 
h i gh 	 gr o w t h 	 i n 	 o n l i n e 	 b o o ki n gs	
 s e e 	 k p i s 
• we are well positioned to 
benefit from the market’s 
size and growth 
r e a s o n s 	 t o 	 i n v e s t 	 i n 	 t u i 	 t ra v e l 	 p l c
our growth levers 
c reating shareholder value
•	 d el i v er i n g 	 m a i n s t r ea m 	 g r o w t h
  u n i q ue 	 h o l i d a y s 	 o n l y 	 a va i l a ble 	 f r o m 	 t u i 	 t ra v el
  di s t r i bu t e d 	 d i r ect l y 	 t o 	 t he 	 c u st o mer 	 –	 
g r o wt h 	 f r om 	 onlin e
  l e v era g i n g 	 o u r 	 s ca le
•	 o r ga n i c 	 s p eci a l i s t 	  	 a ct i v i ty 	 g r o w t h
•	 l e v era g i n g 	 o u r 	 g l o b a l 	 lea ders h i p 	 p o s i t i o n 	 i n	
ac c ommo d a t i on 	 w hol e sa l e r 	 t hr o u g h 	 g r o wt h	
i n 	 e x i s t i n g 	 m a r k e ts	
•	 i n v e st in g 	 in 	 ac c ommo d a t i on 	 o t a 	 –	 
f oc u s 	 o n 	 h i g h 	 g r o wt h 	 a nd 	 ne w 	 m a r k e ts
•	 f oc u s 	 o n 	 f r ee 	 ca s h 	 fl o w	 g enera t i o n 	
r oi c 	 a nd 	 o p era t i o n a l 	 e f fi ci ency
•	 p i o neer i n g 	 s u s ta i n a b i l i ty 	 ch a n g e 	 i n 	 o u r 	 s ect o r
make	 travel	 
e x p er i en c e s	 
s p e c i al	
o ne 	 o f 	 t he 	 w o r ld’ s 	 lea d i n g	 
l e i su r e 	 t ra v e l 	 g r o u ps 	 o p e ra t i n g	 
in 	 a ppr o x im a t el y 	 1 80 	 c o u n t r i e s	
w or l d w id e
w hat we d o 
w hy we d o it 
the inve stment ca se 
see more information on page 10 
see more on pages 57 and 58
strategic re port g r oup 	 ov e r v i e w
1groupxoverviewxxatxaxglancexv56 copyindd   4 13122013   1733  
strategic re port
 
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
 
d ir e c to r s ’ 	 r e p o rt
 
f i n an c i al 	 s t a t e m e nt s
 
s h a re hol d e r 	 i n f orm a t i o n
05 tui travel p l c annu al re po rt  acc ounts 2013
tt 14  ar 2013  13122013  artwork tt14  ar 2013  13122013  artwork
strategic framework  
business models 
strategy sustainability 
and people
our strategy
th r o u gh 	 o u r 	 gl o b a l 	 b ra n d	
p o r tf o l i o 	 a n d 	 tra v e l 	 e x p e r ti se	
w e 	 a r e 	 f o c u se d 	 o n 	 d e l i v e ri n g	
l e i s u r e 	 tra v e l 	 e x p e ri e n c e s	
d e s i gn e d 	 f o r 	 o u r 	 c u st o m e rs ’	
e v e r 	 c h a n gi n g 	 n e e d s
t wo strong business models
a d dr e ss i n g 	 t h e 	 di f f e r e nt 	 c u st om e r	
d e m a n d s 	 w i th i n 	 th e 	 m a rk e t 	 –	
t our o perator and o nline 
a c c om mo d a t i on	
our strategic d rivers
co n t e n t 	 b ra n d s 	  	 d i stri b u ti o n 	
t e c h n o l o g y  	 gr o w th 	  	 sca l e	
a nd 	 p eo p le
our values
c u sto mer dri v e n  	 pla y i n g 	 t o	 
win  	 r e s p on s ib l e 	 l e ad e rs h ip	 
a n d 	v a l u e 	 d ri v e n
sustainable d evelopment 
t a ki n g 	 ca r e 	 i n 	 d e sti n a ti o n s	
r e du c in g 	 car b on 	 e mi ss i on s 	 an d	
e n ga gi n g 	 o u r 	 c o l l e a gu e s 	 a n d	
c u st om e rs 	 in 	 s u sta in abil i ty
our people
e n ga gi n g  	 e n a b l i n g 	 a n d 	 i n v e sti n g	 
i n 	 o u r 	 5 5 000 	 p e o p l e 	 i s 	 k e y 	 t o	 
th e 	 gr o u p ’ s 	 s u c c e ss	
w e	 serve	 more	
t h an 	 3 0 	 mi ll i on	
cu s t o m ers
our key kpis
r eturn 	 on 	 in v es t e d 	 c apit al
148 vs 122 2013 vs 2012
c ash 	 conv er si o n
1
 
90 vs 78 2013 vs 2012
f r e e 	c a s h 	fl o w 	e x c l u d e s 	n e t 	a i r c r a f t 	p r e  d e l i v e r y 	
p a y m e n t s 	a n d	m o v e m e n t s 	i n 	r e s t r i c t e d 	c a s h
un iqu e 	 hol ida ys 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	 
ma ins tr e am 	 se c t or 	 hol ida ys
69 vs 65 2013 v 2012
d ir e c t 	 dis tri b uti on 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	
ma ins tr e am 	 se c t or 	 hol ida ys
66 vs 65 2013 vs 2012
on l in e 	 dis tri b uti on 	 mix 	 
as 	 a 	 p r o po r ti o n 	 o f 	 t o t a l	
ma ins tr e am 	 se c t or 	 hol ida ys
35 vs 33 2013 vs 2012
t u rna r o u n d 	 a n d 	 c o s t	 
s a vi n g s 	 deliv er e d
£46m
i n c r ease 	 i n 	 r o o m n i gh t s 	 f o r 	 th e	
a c c om mo da ti on 	 whol es al e r	
b usi n es s
16 vs 13 2013 vs 2012
c a rbo n 	 ef fic i e n c y  	 m easu r ed	
th r o u gh 	 tu i 	 t r a v e l 	 a i rl i n es ’	
a v e r a ge 	 c a rbo n 	 e m is si o ns 	 pe r	
r e v e n u e 	 pas se n ge r 	 ki l o m etr e	
c o
2
rpk 
707g c o
2
r pk vs  
730g c o
2
r pk 2013 vs 2012 
principal risks
strategic risks
•	 c o n s u m er 	 pr e f er en c e s	 
a n d 	 d e s i r e s
•	 b u s i n e ss 	 i mpr o v em en t	
op p or tun i t ie s	
•	 e m e r gi n g 	 m a r k e t s	 
a c qu i s i t i on s 	 an d 	 in v e st m e nt s	
operational risks
•	 g lob al 	 fi n an c i al 	 fa c t ors
•	 r e gul a t or y 	 e n v ir on m e nt	
•	 t al e nt 	 m an a g e m e nt
•	 p ol i t ical 	 v ol a t i l i ty  	 n a tural	
ca ta st r o p h e s 	 a n d 	 o u tb r e a ks	
c ompliance risk
•	 r e gul a t or y 	 e n v ir on m e nt
ho w we d o it ho w we mea sure it w hat are the ri sk s 
see more information on pages 12 to 37 see more information on page 38 
see more information on page 42 
1groupxoverviewxxatxaxglancexv56 copyindd   5 13122013   1733