Segment Reporting

Notes to the segments

The identification of operating segments is based on the internal organisational and reporting structure primarily built around the different products and services as well as a geographical structure within TUI Group. Allocation of individual organisational entities to operating segments is exclusively based on economic criteria, irrespective of the participation structure under company law. The segments are independently managed by those in charge, who regularly receive separate financial information for each segment. They regularly report to the Group Executive Committee, which consists of six Executive Board members and five other executives. The legally binding decision regarding the use of resources is taken by the Executive Board. TUI AG’s Executive Board has therefore been identified as the Chief Operating Decision Maker (CODM) in accordance with IFRS 8.

The Hotels & Resorts segment comprises all Group-owned hotels and hotel shareholdings of TUI Group.

The Cruises segment consists of the joint venture TUI Cruises, its subsidiary Hapag-Lloyd Cruises as well as the British cruise business Marella Cruises.

The TUI Musement segment comprises the companies providing services in the destinations.

The income statement items of the aircraft leasing companies holding TUI Group's aircraft and subletting them within the Group have been fully allocated to the airlines using the respective aircraft (Northern Region, Central Region and Western Region segments).

The Northern Region segment comprises the tour operators and airlines in the UK, Ireland and the Nordic countries.

The Central Region segment comprises the tour operators and airline in Germany and tour operators in Austria, Poland and Switzerland.

The Western Region segment comprises the tour operators and airlines in Belgium and the Netherlands and tour operators in France.

Apart from the above segments, the recognised items also include All other segments. This comprises in particular the central corporate functions and interim holdings of TUI Group and the Group’s real estate companies, as well as central tourism functions such as information technology.

Notes to the segment data

The selection of segment data presented is based on the regular internal reporting to the Executive Board. From the 2020 financial year onwards, adjusted EBIT is the segment performance indicator within the meaning of IFRS 8.

We define the EBIT in underlying EBIT as earnings before interest, income taxes and result of the measurement of the Group’s interest hedges. EBIT by definition includes goodwill impairments.

Underlying EBIT is adjusted for income and expense items impacting or distorting the assessment of the operating profitability of the segments and the Group due to their level and frequency. These separately disclosed items include gains on disposal from investments, major gains and losses from the sale of assets and major restructuring and integration expenses. In addition, adjustments are carried for all effects from purchase price allocations, ancillary acquisition costs and conditional purchase price payments. Adjustments made in the reconciliation to underlying EBIT also include goodwill impairments.

In financial year 2025, separately disclosed items in total resulted in net expenses of €23.6m.

In the Hotels & Resorts segment, net expenses of €0.8m were adjusted in the 2025 financial year. This resulted from a reversal of impairment losses from the reclassification of a hotel held for sale in the amount of €8.0m and restructuring expenses of €8.8m. The TUI Musement segment reported adjusted net income of €15.4m, which was mainly due to the reversal of restructuring provisions no longer required in the amount of €3.7m and the positive disposal gain of €11.7m from the sale of shares in the associated companies Ranger Safaris Ltd., Arusha, ARP Travel Ltd., Harrow, and Pollman’s Tours and Safaris Ltd., Nairobi, (ARP Group), which were accounted for using the equity method. In the Northern Region, adjusted net expenses amounted to €6.5m, caused by restructuring expenses of €13.6m, which were offset by subsequent income from the sale of the equity valued tour operator business by Sunwing Travel Group Inc. In Ontario (now Midnight Canada Inc.) in the 2023 financial year in the amount of €5.3m and a further positive disposal gain of €1.8m. In the Central Region, net expenses of €10.5m were adjusted, with restructuring expenses of €13.5m partially offset by positive disposal gains of €3.0m. In the Western Region, adjusted net expenses amounted to €9.1m, comprising restructuring expenses of €9.8m and positive disposal gains of €0.7m. In All other segments, net expenses of €12.1m were adjusted, consisting of restructuring expenses of €8.3m and a negative disposal result of €3.8m.

Restructuring expenses for the 2025 financial year mainly comprise expenses for the transformation of the Markets + Airline division, which was accelerated in September 2024, and the voluntary redundancy programme to reduce workforce. The latter affects not only Markets + Airline, but also Group IT and other functions in All other segments.

In financial year 2024, net expenses totalling €0.0m were adjusted as separately disclosed items. The adjusted separately disclosed items for the financial year 2024 include restructuring expenses of €7m in All Other Segments and €1m in Northern Region, partially offset by €1m disposal gains in Holiday Experiences, €1m release of restructuring provisions no longer needed in Western Region as well as income of €7m Sunwing earn-out from the sale of the tour operator business by the equity method accounted company Sunwing Travel Group Inc., Ontario, in Northern Region in the previous financial year and €1m disposal losses in Markets + Airline.

The adjusted expenses of €20.6m (previous year €20.9m) from purchase price allocations mainly include scheduled amortization of intangible assets from acquisitions made in previous years.

In accordance with IFRS 8 TUI presents intercompany leases – in line with the internal steering logic – as if they were IAS 17 Operating leases in segment reporting.

Apart from the underlying EBIT, internal and external revenue, cost of sales, depreciation and amortisation, impairments of other intangible assets (excluding goodwill), property, plant and equipment, right-of-use assets and investments as well as the share of result of joint ventures and associates are likewise shown for each segment, as these amounts are included when determining underlying EBIT. As a rule, inter-segment business transactions are based on the arm’s length principle, as applied in transactions with third parties. No single external customer accounts for 10% or more of revenue.

Assets and liabilities by segment are not included in the reporting to the Executive Board and are therefore not shown in segment reporting.

Depreciation and write-backs relate to non-current assets by region.

Non-current assets by region contain other intangible assets, property, plant and equipment, right-of-use assets and specific other non-current assets that do not meet the definition of financial instruments.

Segment indicators