Sustainable Holidays Report 2012 - Spreading smiles

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Sustainable Holidays Report 2012 - Spreading smiles
OVERVIEW
                       OUR STRATEGY
                       DESTINATIONS
                       CARBON
                       COLLEAGUES
                       CUSTOMERS
                       DATA & GRI

Sustainable Holidays
Report 2012
Spreading smiles
Sustainable Holidays Report 2012 - Spreading smiles
OVERVIEW
                                                                                                                    OUR STRATEGY
Sustainable Holidays Report 2012                                                                                    DESTINATIONS
                                                                                                                    CARBON
                                                                                                                    COLLEAGUES
                                                                                                                    CUSTOMERS
                                                                                                                    DATA & GRI

How to use this report

Welcome to the TUI Travel PLC Sustainable Holidays Report 2012.
This interactive PDF allows you to access information easily, search
for a specific item or go directly to another page, section or website.

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Tell us what you think:
We’re keen to hear what you have to say about this report.
Please email your views to sustainabledevelopment@tuitravel.com
Sustainable Holidays Report 2012 - Spreading smiles
OVERVIEW
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01   Sustainable Holidays Report 2012                                                                                                   DESTINATIONS
                                                                                                                                        CARBON
                                                                                                                                        COLLEAGUES
                                                                                                                                        CUSTOMERS
                                                                                                                                        DATA & GRI

     Welcome
     “Welcome to TUI Travel’s latest Sustainable Holidays Report, which follows the launch of our ambitious
      three-year Sustainable Holidays Plan in 2012.
      The Plan comprises 20 challenging and measurable commitments, underpinning four stretching goals –
      to operate Europe’s most fuel-efficient airlines and reduce carbon on the ground by 20,000 tonnes of CO2,
      to take 10 million customers on ‘greener and fairer’ holidays, and to be considered a leader in sustainable
      holidays by colleagues and customers ( page 13).
      In this report, we reflect on our successes and challenges so far and share performance data for the 2012
      financial year* (1st October 2011 to 30 September 2012).
      The Sustainable Holidays Plan is integral to TUI Travel’s vision of making travel experiences special
      designed for customers’ ever-changing needs. Customers increasingly trust us to live up to our
      sustainability ambitions of minimising environmental impact, respecting culture and people, and bringing
      economic benefit to communities. In doing so, we improve the quality of their holidays, and help preserve
      the destinations we all love to visit.
      Over the past year, my management team integrated performance towards sustainability into the annual
      strategy development process, and approved significant investment in cutting-edge aviation technology
      to ensure we continue to drive down our carbon footprint over the next decade.
      As market leader, it is incumbent on us to pioneer sustainability change in our sector – a challenge we
      embrace, in the knowledge that success is critical to the future health of our business and of the industry.”
      Peter Long, Chief Executive

     *Data for the 2012 financial year is referred to throughout this report as 2012 or FY2012.

                                                                                                  www.tuitravelplc.com/sustainability
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02   Sustainable Holidays Report 2012                                                                                                                          DESTINATIONS
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     TUI Travel at a glance

     TUI Travel PLC (referred to in this report as ‘TUI Travel’        Our business is grouped into three sectors: Mainstream,
                                                                                                                                                           UK & Ireland
     and ‘the Group’) is one of the world’s leading leisure travel     Specialist & Activity and Accommodation & Destinations.
     companies, with over 240 trusted brands in 180 countries          The businesses within our sectors follow either the Tour                              Nordics

     and more than 30 million customers. From the most                 Operator or Online Accommodation business model                 Mainstream            Germany
     popular holiday brands to an unparalleled collection of           depending on which market they address.                                                France
     specialist travel providers, we offer the breadth and depth       We are a truly global business, employing approximately                                Other
                                                                                                                                                                                  Tour
     of experiences and expertise for every conceivable type           54,000 people and operating in 31 key source markets                                                     Operator
     of traveller.                                                     worldwide. As a dynamic, influential company we are
     ‘Making travel experiences special’ underpins everything          committed to responsible leadership in the travel sector.        Specialist
                                                                                                                                        & Activity
      we do and keeps our focus on providing the unrivalled            Our head office is in the UK and TUI Travel PLC is listed
      choice, professionalism and confidence our customers             on the London Stock Exchange as a member of the
      and stakeholders can rely on, now and in the future.             FTSE 100 and FTSE4Good indices with the ticker code TT.
                                                                       For further information about TUI Travel, visit:                                  Inbound Services

                                                                          www.tuitravelplc.com                                        Accommodation
                                                                                                                                      & Destinations
                                                                                                                                                       Online Accommodation
                                                                                                                                                                                  Online
                                                                                                                                                                              Accommodation

                                                                Our 31 key source markets are:

                                                                Australia        Finland           Mexico            Spain
                                                                Austria          France            The Netherlands   Sweden
                                                                Belgium          Germany           New Zealand       Switzerland
                                                                Brazil           Hungary           Norway            Thailand                                                 www.tuitravelplc.com
                                                                Canada           India             Poland            Ukraine
                                                                China            Ireland           Russia            United Kingdom
                                                                Czech Republic   Italy             Singapore         United States
                                                                Denmark          Luxembourg        Slovenia
Sustainable Holidays Report 2012 - Spreading smiles
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03   Sustainable Holidays Report 2012                                                                                                            DESTINATIONS
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                                                                                                                                                 CUSTOMERS
                                                                                                                                                 DATA & GRI

     Highlights from 2012

     £16m
     amount saved through
                                                                                 89%
                                                                                 of TUI Travel’s aircraft
                                                                                                                                              600
                                                                                                                                              Participants attended
     environment efficiencies                                                    are now fitted with                                          our supplier sustainability
     in 2012*                                                                    fuel-saving winglets                                         workshops since the
                                                                                                              We featured over                launch of our Plan

                                                                                                              850
                                                                                                              hotels which had

     73.0g                                                                       2m
                                                                                 Customers stayed in
                                                                                                              sustainability certifications
                                                                                                              in brochures and on
                                                                                                              websites                        Our businesses helped
                                                                                                                                              contribute over

                                                                                                                                              €5m
     of CO2 emissions per                                                        hotels with sustainability
     revenue passenger                                                           certifications
     kilometre (RPK) across TUI
     Travel airlines – making our                                                                                                             to good causes
     airlines some of the most

                                                                                                              78%                             120
     fuel efficient in Europe
                                                                                 TUI Travel airlines’

     2.3m
     Holidaymakers engaged
                                                                                 achieved their

                                                                                 6%
                                                                                                              of TUI Travel senior
                                                                                                              leaders agreed that TUI
                                                                                                              Travel acts responsibly on
                                                                                                                                              Ideas generated by
                                                                                                                                              colleagues as part
                                                                                                                                              of our sustainability
     in sustainable tourism                                                      carbon efficiency target     environmental matters           innovation competition
                                                                                 two years early              and is socially responsible

     *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.
Sustainable Holidays Report 2012 - Spreading smiles
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04   Sustainable Holidays Report 2012                                                                                           DESTINATIONS
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     Our sustainability strategy

     “During the life of our Sustainable Holidays Plan, TUI Travel has continued to shape its business to become more
      contemporary and online driven, delivering holidays that take care of all our customers’ needs.
      Our customer research tells us that the needs of the modern Mainstream customer – who accounts for around 80%
      of the Group’s business – include the reassurance of knowing that their holiday’s impact on the environment and
      destination communities is being actively managed by us, their tour operator. We strive to do so in a way that involves
      our customers, reinforcing their expectations of a high commitment to sustainability from our brands.
      We are building the management of sustainability issues into the agendas of our Mainstream strategic workstreams
      – addressing airline management, purchasing, destination services, customers and brands, product development and
      distribution. The first year of the Sustainable Holidays Plan has seen some significant milestones – for example, the
      achievement of our airline carbon reduction target two years ahead of schedule – but we are aware that there is still
      much to be done.
      I, along with my colleagues on the Board, am resolved to address these challenges, convinced that creating more
      sustainable holidays is an integral component of a modern, efficient, forward-thinking travel company.”
      Johan Lundgren, Deputy Chief Executive (PLC Board sponsor for sustainable development)

      ‘’ In this report we outline TUI Travel’s first year of progress against the 2012-14 Sustainable
         Holidays Plan – a strategy developed with due consideration of the sustainability issues
         affecting our business now and in the future, in consultation with internal and external
         stakeholders ( page 51).
         Businesses across our Group are feeding into delivery of the Plan which has served to align and
         focus our collective efforts to become a more sustainable organisation. Many of our targets are
         on track, but some are proving challenging, and in those instances we will re-double our efforts
         to make further progress by 2015.
         Meanwhile the global sustainability challenges remain as pressing as ever – for example,
         the impacts of eco-system degradation and climate change on the environment and
         communities in our holiday destinations, and on the holiday experience. We welcome feedback
         on TUI Travel’s response to these challenges. sustainabledevelopment@tuitravel.com”
        Jane Ashton, Director of Group Sustainable Development
Sustainable Holidays Report 2012 - Spreading smiles
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05   Sustainable Holidays Report 2012                                                                                                                                                                                DESTINATIONS
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     Our strategic framework

     TUI Travel’s strategic framework underpins everything we do
                                                                                                                                                                                                                                                          .
     and comprises of our Vision, Strategic Drivers and the Values                                                                                                                                                                              2014..
     that are intrinsic to our business culture. Our sustainability
     strategy ‘Sustainable Holidays Plan 2012-14’ aligns with our
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     To read more about our corporate strategy, visit:   www.tuitravelplc.com

                                                                                                                                                                                                                                             2014..
                                                                                                                                                                                                                                                          .
Sustainable Holidays Report 2012 - Spreading smiles
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                                                                                                                                                                             OUR STRATEGY
06   Sustainable Holidays Report 2012                                                                                                                                        DESTINATIONS
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                                                                                                                                                                             COLLEAGUES
                                                                                                                                                                             CUSTOMERS
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     Stakeholder engagement

     Communicating with the groups that have an interest in our Company        We are conscious of the pressures that tourism can place on local       Twelve of the most high profile examples include:
     and its activities helps us develop as a business and incorporate         populations and resources and therefore work collaboratively with       • Sustainable Tourism Management Conference in Istanbul, 2011
     respect for the environment and people into the way we work.              communities, governments and a range of other partners to support       • London Ski Show, 2011
     TUI Travel PLC regularly engages with customers, colleagues, investors,   sustainable management of destinations. Examples include: Global        • World Travel Market in London, 2011 & 2012
     industry partners, academia, suppliers, stakeholders in destinations,     Sustainable Tourism Council, Dutch Association of Travel Agents &
                                                                                                                                                       • Taking Responsibility for Tourism conference in London, 2012
     governments, non-governmental organisations and experts in                Tour Operators, Deutscher ReiseVerband, Association of British Travel
                                                                               Agents (ABTA), GIZ, The Overseas Development Institute, The Travel      • International Conference on Climate Change & Tourism in
     sustainable tourism. Where possible, we have incorporated their                                                                                     Bournemouth, 2012
     feedback into our sustainable development strategy.                       Foundation, The Tour Operators Initiative and Born Free. Read more
                                                                               here: page 14.                                                          • Global Sustainable Tourism Council AGM in Washington DC, 2012
     We have developed collaborative partnerships with many stakeholders                                                                               • Harvard University Business School in Boston, 2012
     whose insight and guidance continue to help us develop our position       For more information on our partnerships and collaboration, visit:
                                                                                  www.tuitravelplc.com                                                 • Spanish National Congress for the Environment - European
     on aviation and climate change. Examples include: Carbon Disclosure
                                                                                                                                                         Campaign for Business & Biodiversity in Madrid, 2012
     Project, Sustainable Aviation Fuel Users Group (SAFUG), Sustainable
     Aviation, Forum for the Future in the UK and Aviation Initiative for      Senior managers are advocates for sustainable tourism                   • Fitur in Madrid, 2012 & 2013
     Renewable Energy in Germany (AIREG). Read more here page 27.              During the first 18 months of our Sustainable Holidays Plan,            • Carbon Disclosure Project workshops in London, 2012 & 2013
                                                                               TUI Travel senior managers publically advocated sustainable tourism     • Responsible Business Summit in London, 2012 & 2013
                                                                               at 50 events with a wide range of international stakeholders.           • ITB (International Tourism Bousse) CSR day in Berlin, 2012 & 2013

                                                                                                                                                                                                www.tuitravelplc.com

                                          Jane Ashton, Director of Group                                          Harald Zeiss, Head of                                                 Arantxa Garcia, Head of
                                          Sustainable Development                                                 Sustainability at TUI                                                 Sustainable Development for the
                                          presenting at the International                                         Deutschland, presenting at                                            Accommodation & Destinations
                                          Conference on Climate Change                                            ITB CSR Day in Berlin, 2013.                                          Sector, meeting the Spanish
                                          & Tourism in Bournemouth, UK,                                                                                                                 Prince of Asturias at a sustainability
                                          in 2012.                                                                                                                                      event in Madrid, 2012.
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07   Sustainable Holidays Report 2012                                                                                                                                              DESTINATIONS
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                                                                                                                                                                                   DATA & GRI

     Managing sustainable development

     Governance                                                                The Group sustainable development department works closely with             Key areas of risk identified are:
     Commitment at the most senior level is vital for us to achieve our        other Group departments and a network of sustainable development            • Legislative and societal demands in relation to size and
     goal of leading the leisure travel sector in sustainable development.     coordinators in each key source market/Sector who have a remit to              management of TUI Travel PLC’s carbon footprint
     Johan Lundgren, Deputy Chief Executive, is responsible for reporting      develop and implement sustainable development strategy, supported           • Colleague actions need to uphold TUI Travel’s sustainable
     on sustainable development to the TUI Travel PLC Board and                by a network of champions.                                                     development policy
     Jacky Simmonds, Group HR Director, is responsible for reporting on           www.tuitravelplc.com
                                                                                                                                                           • Supplier actions need to uphold TUI Travel’s environmental
     sustainable development to the Group Management Board. Jane                                                                                              and social supplier standards
     Ashton is the Director of Group Sustainable Development and the           Risk management
                                                                                                                                                           • Better understanding of the socio-economic impacts
     Group Management Board acts as the Steering Committee, setting            Policy and mitigation for Group-wide risks relating to sustainability are
                                                                                                                                                              of tourism
     the strategic direction and long-term objectives for sustainable          facilitated by the Group risk management and sustainable development
     development. The Group Management Board debated the                       departments, with responsibility for managing such risks also shared by     • Concern over damage to and quality of destinations due
     Sustainable Holidays Plan strategy in 2012 and again in 2013.             the businesses themselves. Increasing legislative and societal demands         to ecosystem degradation and climate change
                                                                               on a company like ours requires that we act responsibly and identify        • Growing expectation among our customers regarding
     The Group sustainable development department’s role is to drive
                                                                               and manage our risks effectively.                                              sustainability issues
     change towards a more sustainable business and to forge Sector
     leadership.                                                                                                                                           For further information about these risks and how we manage
                                                                                                                                                           them see Destinations ( page 12), Carbon ( page 27 ),
                                                                                                                                                           Colleagues ( page 39) and Customers ( page 45 ). We have
                                                                                                                                                           also identified sustainability risks within the Principal risk section
                                                                                                                                                           of our 2012 Annual Report (p27).

       Our policies                                                                                           Codes of Conduct
       Our Sustainable                                                                                        We have a Group employee Code of Conduct which covers a wide range of
       Development Policy sets                                                                                sustainability issues, including human rights, business ethics and transparency
       out our vision and approach                                                                            and commits TUI Travel to upholding the principles of the UN Global Compact.
       to sustainable development.                                                                            In 2013, TUI Travel launched a new Supplier Code of Conduct which sets out                 www.tuitravelplc.com
       We also have a policy on                                                                               the minimum standards we expect from suppliers and their employees,
       Child Protection and Animal                                   Jacky Simmonds, Group HR Director,       contractors, agents and subsidiaries when working on our behalf. The code
       Welfare. To read these                                        is responsible for reporting on          covers human rights and labour laws, support for local communities,
       policies, visit;                                              sustainable development to the           environmental impacts, and bribery and corruption.
                                                                     Group Management Board.
           www.tuitravelplc.com                                                                               To read our Codes of Conduct, visit:     www.tuitravelplc.com
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08   Sustainable Holidays Report 2012                                                                                                                                             DESTINATIONS
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     Indices and awards

     Our commitment to Responsible Leadership                Forest Footprint Disclosure Project – TUI Travel         Awards                                                  Sailors of the Sea Clean Regattas certification –
     extends beyond our Group. We take great pride           completed its third submission to the Forest             Atmosfair’s 2012 Airline Index – TUIfly was ranked      The Moorings achieved the Sailors of the Sea
     in the recognition we receive from external experts     Footprint Disclosure Project in 2012 and was one         the most climate-efficient charter airline worldwide.   Clean Regattas certification for its 31st Interline
     who assess our achievements and give us awards.         of seven companies listed in the Travel and Leisure      Thomson Airways was ranked the second most              Regatta in the British Virgin Islands.
     We have won a number of notable awards this year.       Sector.                                                  efficient airline for short haul flights.               Travelife Certified – TUI Nederland was the first
     We also continue to be well positioned on sustainable   FTSE4Good – TUI Travel is listed on the FTSE4Good        Carbon Reduction Commitment – TUI Travel was            major travel company to achieve the new Travelife
     development indices.                                    Index in recognition of our transparency and for         ranked 45th out of 2,097 companies in the 2012          certification for Tour operators and Travel agents
                                                             meeting strict social, environmental and governance      UK Carbon Reduction Commitment Performance              in 2013.
     Indices
                                                             standards.                                               League Table.                                           Travel Magazine Travel Awards – Jetair and Jetairfly
     Carbon Disclosure Project – In 2012, for the fifth
                                                             Sustainability Yearbook – TUI Travel was featured        Conde Nast World Savers Award – Intrepid Travel         received the sustainable tourism award in 2012
     consecutive year, TUI Travel was featured in the
     Carbon Disclosure Leadership Index. TUI Travel is       in the 2011 and 2012 SAM Sustainability Yearbook         won the Preservation category in 2012.                  World Responsible Tourism Awards – Sawadee
     the only tour operator to be featured in this index     which features the best performing 15% of companies      Green Lifestyle Awards – Intrepid Travel won the        received the Best Carbon Reduction Initiative
     and our score places us in the top 10% of the           who submit data to the Dow Jones Sustainability          Travel category award in 2012.                          award in 2012.
     FTSE 350 for our approach to carbon disclosure          index (the largest 2,500 companies globally). In 2012,
                                                                                                                      Moroccan Government Responsible Travel Awards           For details of previous awards, visit:
     and governance.                                         TUI Travel received a Silver Class distinction and
                                                                                                                      – Intrepid Travel received the 2012 award for the          www.tuitravelplc.com
                                                             Sector Mover status for its outstanding achievements
                                                                                                                      Environment/International category.
                                                             in the area of corporate sustainability.

                                                                                                                                                                                                       www.tuitravelplc.com
OVERVIEW
                                                                                                                   OUR STRATEGY
09   Sustainable Holidays Report 2012                                                                              DESTINATIONS
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     Embracing the future

     Forum for the Future
     Forum for the Future is a non-profit organisation working globally with businesses and governments
     to create a sustainable future. They have 15 years’ experience inspiring new thinking, building creative
     partnerships and developing practical innovations to change our world. We’ve been working with
     Forum since 2002 to help set our strategy and put it into action (initially as First Choice Holidays PLC,
     subsequently as TUI Travel PLC). Forum selects a handful of companies as Pioneer partners, leading
     organisations at the cutting edge of sustainability. TUI Travel has been selected as one of these partners.

      “TUI Travel continues to raise standards to make sustainability an integral part of their business.
       Bringing up minimum standards through their supplier code of conduct and driving projects that
       address local sustainability impacts in destinations, improves livelihoods, enhances holiday experiences,
       reduces risk and drives customer loyalty. The brilliant Green Ideas Factory involves colleagues
       in creating more sustainable business opportunities and innovating new approaches.
       By working across the travel sector through organisations such as the Global Sustainable Tourism
       Council and with other leading businesses through Forum for the Future’s Sustainable Business Models
       Group, TUI Travel is helping to shape the context that it operates in to make better sustainability
       performance possible. Most importantly, by embedding sustainability into its differentiated hotels,
       such as Sensatori, it is helping to make sustainable business the norm in the travel and tourism sector.
                                                                                                                                  www.tuitravelplc.com
       TUI Travel knows that this is a long term journey and reaching its targets won’t be easy, but by reaching
       out to destinations, customers, colleagues, suppliers and others outside the sector it can begin to bring
       sustainable holidays to the mainstream”.
       Stephanie Draper, Director of Systems Innovation, Forum for the Future
          www.forumforthefuture.org
OVERVIEW
                                                                                                                                                               OUR STRATEGY
10   Sustainable Holidays Report 2012                                                                                                                          DESTINATIONS
                                                                                                                                                               CARBON
                                                                                                                                                               COLLEAGUES
                                                                                                                                                               CUSTOMERS
                                                                                                                                                               DATA & GRI

     Our sustainable holiday journey

     We are working to embed sustainability
     throughout the holiday journey.
                                                               		 Flying more                    Sustainability                   Driving best practise
                                                                  fuel-efficient                 awareness raising                sustainability performance
                                                                  aircraft                       in destinations                  with suppliers

                                                                                           Protecting                      Investing                 Reducing            Supporting    Saving
                                                                                          Biodiversity                   in Training                  Carbon             Communities   Water

                                                                                                                                       Reducing                     Animal     Protecting
                                                                                                                                        Waste                       Welfare     Children

       		 Promoting greener and         		 Training customer                		 Greening our           		 Engaging customers
          fairer holidays online           facing colleagues                   coach fleet               in sustainable tourism
                                           on sustainability
OVERVIEW
                                                                                                                                                                  OUR STRATEGY
11   Sustainable Holidays Report 2012                                                                                                                             DESTINATIONS
                                                                                                                                                                  CARBON
                                                                                                                                                                  COLLEAGUES
                                                                                                                                                                  CUSTOMERS
                                                                                                                                                                  DATA & GRI

     Our three-year Sustainable Holidays Plan
     Our vision is to make travel experiences special with a firm commitment to sustainability.

     We’ve set ourselves four goals to achieve by 2015...

              Destinations                                    Carbon
                                                             Better in the air
                                                                                                                       Colleagues
                                                                                                                         take action
                                                                                                                                                                         Customers
                                                                                                                                                                              who care
           Better on the ground                                   Reducing carbon emissions                            Involving and empowering colleagues         Creating demand for sustainable holidays
                   Taking care in destinations

      We will deliver 10 million                        We will operate Europe’s most                        Our colleagues will rate TUI Travel                Customers will regard TUI Travel
      ‘greener and fairer’ holidays                     fuel-efficient airlines and save                     as a leader in sustainability                      as a leader in delivering more
      We will measure this by the number of
                                                        more than 20,000 tonnes of carbon                    We will measure this through the Your Voice
                                                                                                                                                                sustainable holidays
      customers we take to hotels with credible         from our ground operations                           global opinion survey results – aiming to          We will measure this by our performance in
      sustainability certifications from 2012 – 2014.   We will measure this through TUI Travel airlines’    meet High Performing Company scores for            consumer research in our key source markets.
                                                        average carbon emissions per revenue passenger       responsibility towards the environment and
                                                        kilometre (CO2/RPK) and CO2 saved from our           community for all colleagues and senior leaders.
                                                        major premises, retail outlets, brochure paper
                                                        production, differentiated hotels and fleets of
                                                        vehicles (against 2011 baseline).

                          page 12                                         page 27                                               page 39                                              page 45

                                                                                                            For an overview of our progress in 2012, see page 51
OVERVIEW
                                                                              OUR STRATEGY
12   Sustainable Holidays Report 2012                                         DESTINATIONS
                                                                              CARBON
                                                                              COLLEAGUES
                                                                              CUSTOMERS
                                                                              DATA & GRI

               Destinations
              Better on the ground
                           Taking care in destinations

     GOAL BY 2015: We will deliver 10 million
                                                                         13 our responsibilities
                                                                         14 sustainability
     ‘greener and fairer’ holidays                                       	certification
                                                                         16 working with suppliers

     We want our holidays to benefit local livelihoods and protect the   19 Sensatori

     environment, and in doing so maintain the quality, viability and    21 Blue Villages
                                                                         22 ECONOMIC CONTRIBUTION
     desirability of our products for years to come.
                                                                         23 projects
                                                                         25 Sustainable management
OVERVIEW
                                                                                                                                                                                     OUR STRATEGY
13   Sustainable Holidays Report 2012                                                                                                                                                DESTINATIONS
                                                                                                                                                                                     CARBON
                                                                                                                                                                                     COLLEAGUES
                                                                                                                                                                                     CUSTOMERS
                                                                                                                                                                                     DATA & GRI

     Destinations our responsibilities

     Travel and tourism accounts for 9% of the world’s GDP            TUI Travel has a global supply chain, and our suppliers are      Engaging in sustainability can also help hotels differentiate
     and 6% of its exports*. Tourism also accounts for 1 in 11        the driving force for improving our sustainability performance   their product, meet growing customer demand, and protect
     jobs globally* and is the main source of foreign exchange        in our destinations. Each of them plays a significant role in    their destinations. There is also evidence that our most
     in one-third of developing countries**.                          managing our impacts on the local community, economy             sustainably-managed hotels are also those which are
     The leisure travel industry can have both positive and           and environment.                                                 delivering higher quality and customer satisfaction.
     negative impacts on communities and the natural                  We are committed to influencing more hotels to achieve           Our aim is to extend the reach of our influence on
     environment – the challenge is how to manage these               credible sustainability certifications, so as to be assured      sustainability to all suppliers and to monitor their progress.
     impacts for the greatest good.                                   that our suppliers are making continual sustainability           This is a big challenge, and we aim to work together
                                                                      improvements. This not only improves our sustainability          with suppliers to ensure that it is realised in a way that
     Our business case
                                                                      performance, but also benefits our suppliers.                    benefits everyone involved: the customer, supplier,
     We want our holidays to benefit local livelihoods and protect                                                                     TUI Travel, the environment, and local people.
                                                                      Depending on the region, energy costs account for between
     the environment, and in doing so maintain the quality,
                                                                      5% and 15% of a hotel’s turnover*, so reducing energy
     viability and desirability of our products for years to come.
                                                                      use can have a significant impact on the bottom line. We’re
     We’re working with stakeholders in destinations around the
                                                                      already helping many of our hotels by training them on
     world to make this a reality.
                                                                      eco-efficiencies, which ultimately delivers better value for
                                                                      money for our customers.
     *WTTC 2012
                                                                      *blueContec 2012
     **UNEP 2011

      “The Global Sustainable Tourism Council (GSTC) is pleased to acknowledge
       and applaud TUI Travel for their commitment to deliver 10 million ‘greener
       and fairer’ holidays – and in communicating the work they are doing for the
       industry. As one of the first companies to commit to working with the GSTC
       recognised standards we are encouraged to see TUI Travel documenting their                                                                                                                         www.tuitravelplc.com
       sustainability efforts, as well as driving the demand for verified sustainable
       tourism products. TUI Travel is action-oriented and delivers on their                                                                                                        International tourist
       commitment to sustainability and the endless possibilities for our future.”                                                                                                  arrivals have increased
                                                                                                                                                                                    from 25 million in 1950
       Dr. Kelly Bricker, Chair, Global Sustainable Tourism Council                                                                                                                 to 1 billion in 2012.
OVERVIEW
                                                                                                                                                                                    OUR STRATEGY
14   Sustainable Holidays Report 2012                                                                                                                                               DESTINATIONS
                                                                                                                                                                                    CARBON
                                                                                                                                                                                    COLLEAGUES
                                                                                                                                                                                    CUSTOMERS
                                                                                                                                                                                    DATA & GRI

     Destinations sustainability certification

     TUI Travel businesses are actively engaging with suppliers        certifications – such as those recognised by the Global          There are currently over 140 tourism supply chain
     to implement credible sustainability certification schemes,       Sustainable Tourism Council – and environmental                  sustainability certification schemes, which can be confusing
     which must meet best practice standards and drive                 management systems.                                              for our holidaymakers, our businesses and our hotels. To
     continuous improvements.                                                                                                           simplify matters we are focusing on those certifications
                                                                       Global Sustainable Tourism Council
     Our goal is to deliver 10 million ‘greener and fairer’ holidays                                                                    which have achieved GSTC recognition, meaning that their
                                                                       We are a member of the Global Sustainable Tourism Council        standards align with the Global Sustainable Tourism Criteria.
     by 2015, through taking 10 million customers to hotels
                                                                       (GSTC) and our Director of Group Sustainable Development         Currently 15 standards have achieved this recognition,
     with credible sustainability certifications from 2012 – 2014.
                                                                       sits on the board. The GSTC is a global initiative dedicated     including Travelife.
     We also aim to feature 3,000 hotels with sustainability
                                                                       to promoting sustainable tourism practices around the world.         www.gstcouncil.org
     certifications by 2015.
                                                                       At the core of their efforts are the Global Sustainable
     In 2012, we took 2,056,700 customers to hotels certified          Tourism Criteria, a set of voluntary principles that provide a   In March 2013 TUI hosted a conference in Hannover for
     as more sustainable, and featured over 850 hotels with            framework for the sustainability of tourism businesses across    certification schemes to learn more about achieving GSTC
     sustainability certifications. We still have a long way to go     the globe. The criteria cover all aspects of sustainability:     recognition and to encourage more certifications to align
     to meet our commitment.                                           environmental, social and economic.                              their standards to GSTC.
     One challenge is the slower than anticipated pace of hotels           www.gstcouncil.org
     achieving sustainability certifications. Our priority is to
     support hotels by increasing their awareness and skills
     necessary for them to achieve credible sustainability

       GOAL BY 2015:                                                                                                                      Commitment #1
       We will deliver 10 million ‘greener and fairer’ holidays. We will measure                                                          We will feature over 3,000 hotels
       this by the number of customers we take to hotels with credible sustainability                                                     certified as more sustainable
       certifications from 2012 – 2014, e.g. sustainability certifications working with
       the Global Sustainable Tourism Council such as Travelife, and international                                                        YEAR 1 PERFORMANCE
                                                                                                                                                                                                        www.tuitravelplc.com
       environmental management standards such as ISO 14001 and EMAS.                                                                     In Winter 2011/12 and Summer
                                                                                                                                          2012 we featured over 850 hotels
       YEAR 1 PERFORMANCE                                                                                                                 with sustainability certifications
       We took 2,056,700 customers to hotels with credible sustainability                                                                 (2011: 700 hotels).
       certifications (2011: 1,207,700 customers).
OVERVIEW
                                                                                                                                                                                 OUR STRATEGY
15   Sustainable Holidays Report 2012                                                                                                                                            DESTINATIONS
                                                                                                                                                                                 CARBON
                                                                                                                                                                                 COLLEAGUES
                                                                                                                                                                                 CUSTOMERS
                                                                                                                                                                                 DATA & GRI

     Destinations sustainability certification

     “TUI Travel has demonstrated an outstanding commitment to                                                                                  “TUI Travel is proud to have supported ABTA throughout the
      sustainability in recent years. They understand that by improving the                                                                      development and implementation of Travelife. With 1,000
      sustainability of their product they will be creating better holidays for                                                                  hotels now subscribed to Travelife and working to improve
      their customers and helping to maintain the quality of the destinations                                                                    their environmental and social impacts, Travelife has initiated
      visited. The Group has shown how sustainability can be designed                                                                            sustainability change at scale. TUI Travel brands around the
      into the day-to-day management and operation of their businesses,                                                                          world look forward to continuing to promote Travelife as it
      and has been an early adopter of many new sustainability tools,                                                                            goes from strength to strength.”
      such as Travelife and the ABTA Global Animal Welfare guidelines.”                                                                         Garry Wilson, Managing Director, Mainstream Purchasing, TUI Travel
      Mark Tanzer, CEO, ABTA

      Travelife
                                                                           TUI Travel businesses were the first tour operators to make
      Since 2005 we have worked with ABTA (Association of British          Travelife membership part of supplier contracts, and we
      Travel Agents) and industry peers to develop Travelife, used by      offer support for hotels to help them reach award level,
      the majority of businesses across TUI Travel. Travelife recognises   through workshops, hotel guidelines and best practice sharing.
      hotels which care for the environment, their employees and              page 18. TUI Travel plays an active role on the Travelife Board
      the local community. In May 2013, Travelife reached their 1,000th                                                                                                                              www.tuitravelplc.com
                                                                           Steering Committee and in the Travelife criteria review process,
      subscribed hotel across 45 countries. In 2007, our First Choice      to further strengthen their standards in alignment with GSTC.
      brand was the first tour operator to market hotels with Travelife
                                                                           Garry Wilson, Managing Director of Mainstream Purchasing at
      certifications, and TUI Travel continues to be the largest
                                                                           TUI Travel is a Director on the Travelife Board.
      supporter of the Travelife system, with over 700 hotels signed
      up to the system in June 2013.                                           www.travelife.org
OVERVIEW
                                                                                                                                                                               OUR STRATEGY
16   Sustainable Holidays Report 2012                                                                                                                                          DESTINATIONS
                                                                                                                                                                               CARBON
                                                                                                                                                                               COLLEAGUES
                                                                                                                                                                               CUSTOMERS
                                                                                                                                                                               DATA & GRI

     Destinations working with suppliers

     The sustainability performance of our hotel suppliers is        In 2013, TUI Travel launched a new Supplier Code of         Communicating the benefits
     a critical factor in TUI Travel’s sustainability performance.   Conduct for all suppliers including hoteliers. The code     One of the most effective roles we can play is simply to
     We work in partnership with our suppliers to help them          sets out the minimum standards we expect from suppliers     communicate the benefits of hotels addressing their social
     improve their energy and water management, achieve              and their employees, contractors, agents and subsidiaries   and environmental impacts.
     sustainability certification, and share best practice.          when working on our behalf. The code covers human
                                                                                                                                 Our ‘Guidelines for Environmental Sustainability in Hotels’
                                                                     rights and labour laws, support for local communities,
     Setting clear minimum standards                                                                                             aim to help our suppliers achieve best practice sustainability
                                                                     environmental impacts, and bribery and corruption.
     The majority of TUI Travel businesses have incorporated                                                                     performance, and highlight case studies where eco-
                                                                     For more information, please visit:
     environmental and social minimum standards into their                                                                       efficiencies have saved suppliers significant amounts of
                                                                         www.tuitravelplc.com                                    money. www.tuitravelplc.com
     contracts for accommodation suppliers.
     These minimum standards require each hotelier to initiate                                                                   TUI Nederland has a dedicated website for suppliers to
     (or continue to develop) a sustainability programme,                                                                        encourage support for Travelife: www.tuigreen.com
     managing and improving their impacts on the environment,                                                                    TUI Travel dedicates a section of its corporate
     their employees and the local community.                                                                                    website to ‘working with suppliers’: www.tuitravelplc.com
         www.tuitravelplc.com

       “The new TUI Travel Supplier Code of
        Conduct is a great way to focus our
        businesses, our suppliers and partners
        on shared values of integrity and social
        responsibility. As a global leader in the
        leisure travel industry, our customers
        expect us to deliver excellent value for                                                                                                                                                    www.tuitravelplc.com
        money travel experiences, in partnership
        with suppliers, who follow the same high                                                   Our ‘Guidelines                                       TUI Nederland was the first major travel company in the
        ethical standards that cause those                                                         for Environmental                                     Netherlands to develop a Fair Trade Tourism holiday
        customers to trust us.”                                                                    Sustainability                                        package in 2013. All accommodations and activities during
        Peter Long, Chief Executive of TUI Travel                                                  in Hotels’.                                           this holiday are Fair Trade Tourism certified by Fair Trade
                                                                                                                                                         in Tourism South Africa (FTTSA). This means fair wages
                                                                                                                                                         and good working conditions for owners and employees.
OVERVIEW
                                                                                                                                                       OUR STRATEGY
17   Sustainable Holidays Report 2012                                                                                                                  DESTINATIONS
                                                                                                                                                       CARBON
                                                                                                                                                       COLLEAGUES
                                                                                                                                                       CUSTOMERS
                                                                                                                                                       DATA & GRI

     Destinations working with suppliers

     Providing training and skills                                    Rewarding progress                                                          El Dorado Seaside Suites in Mexico won
                                                                                                                                                  TUI UK & Ireland’s top hotelier sustainability
     For a number of years we have been facilitating supplier         Several of our businesses give awards for top-performing
                                                                                                                                                  award in 2012. This hotel supports our
     training on sustainability around the world. In the last         hotels on sustainability to encourage and celebrate best                    Jungle Jams project. page 22
     two years, we have organised over 20 supplier workshops          practice.                                                                       www.thetravelfoundation.org.uk
     attended by 600 hoteliers and other stakeholders, in             TUI Deutschland awards its most environmentally
     locations such as Germany, Kos, Rhodes, Turkey, Sweden,          responsible hotels with the TUI Umwelt Champion
     Mallorca, Madeira and the Dutch Antilles in the Caribbean.       (’Environmental Champion’) award. The award system uses
                                                                      Travelife as part of the assessment criteria. 138 hotels
                                                                      achieved the award in 2012, and the top hotel was Hotel
                                                                      Tigaiga in Tenerife, due to its strong commitment to
                                                                      environmental protection, including being an early adopter
                                                                      of solar energy some 20 years ago.
                                                                      TUI UK & Ireland awards its top-performing hotels on
                                                                      sustainability at an annual supplier event at the World Travel
                                                                      Market in London. In 2012, the winner was El Dorado Seaside
                                                                      Suites in Mexico for wholly integrating sustainability into
                                                                      their management philosophy and customer experience.

                                                                                                                                                                            www.tuitravelplc.com

                                     In 2012 TUI Nederland organised supplier                                                          Hotel Tigaiga staff in Tenerife –
                                     conferences on sustainability in the                                                              celebrating their top TUI
                                     Caribbean islands of Bonaire, Curacao and                                                         Deutschland Environmental
                                     Aruba in partnership with Travelife and the                                                       Champion award in 2012. They
                                     environmental consultancy blueContec.                                                             were early adopters of solar
                                                                                                                                       panels.    www.tui.com
OVERVIEW
                                                                                                                                                                                                        OUR STRATEGY
18   Sustainable Holidays Report 2012                                                                                                                                                                   DESTINATIONS
                                                                                                                                                                                                        CARBON
                                                                                                                                                                                                        COLLEAGUES
                                                                                                                                                                                                        CUSTOMERS
                                                                                                                                                                                                        DATA & GRI

     Destinations working with suppliers

     We believe that more sustainable holidays go hand-in-hand with                         Working in partnership with suppliers                                                sustainability workshops, individual on-site visits and an online
     higher quality holidays and we are building our business around                        TUI UK & Ireland is working with blueContec and Responsible                          energy management system.
     ‘differentiated’ hotels and holiday experiences that provide a                         Hospitality Partnership to provide 55 of their differentiated hotels                 We have also incorporated challenging water and energy
     seamless experience for customers.                                                     with dedicated environmental consultancy from 2012 to early 2014.                    benchmarks into differentiated hotel specification contracts
     For the purposes of our Sustainable Holidays Plan, we define                           These hotels include Sensatori ( page 19), Holiday Villages and                      across the Mainstream Sector.
     differentiated hotels as those over which we have a level of                           Couples hotels – some of our most popular holidays.
                                                                                                                                                                                 Meeting new challenges
     influence and control, so we take a greater level of responsibility                    The goal is for these hotels to achieve Travelife awards and work
     for their sustainability performance. We are the exclusive customer                    towards ISO 14001, to collectively reduce their carbon emissions                     We designed our Sustainable Holidays Plan commitments to be
     of these hotels within our source markets.                                             by a total of 8,000 tonnes, and save up to an average of £50,000                     ambitious, and know that a number of them will require changes
                                                                                            per hotel per year. For example, Tropicana Beach Hotel in Egypt                      to our current processes.
     Our 2011 baseline consisted of 202 hotels. During 2012, we defined
     44 additional hotels as ‘differentiated’, so the scope of our efforts                  has reduced its energy use by 40% and its water use by 33%,                          One of our challenges is gathering accurate energy and water data
     has been expanded to 246 hotels in total. We expect this number to                     which should lead to savings of £150,000 in the first year alone.                    from the hotels we work with in order to target improvements.
     increase further in future years as we consolidate our mainstream                      TUI Nordic has been working for many years to make its Blue                          This year, we are investing in a web-based sustainability data
     business around differentiated holiday experiences.                                    Village hotels more sustainable ( page 21). In 2012, the business                    software solution to improve the collection and aggregation
                                                                                            launched Project Starlight, providing dedicated environmental                        of our carbon, water and waste data from hotels. ( page 55 )
     It is a priority for us to drive best practice sustainability performance
     in our differentiated hotels. We are currently supporting many of                      consultancy to TUI Nordic’s 43 Blue Star hotels. The project’s aim
     them through investment in expert advice.                                              is ISO 14001 certification for all Blue Star hotels by 2014, through

       Commitment #2                                                 YEAR 1
                                                                     Progress      Commitment #3                                               YEAR 1
                                                                                                                                               Progress      Commitment #4
       All differentiated hotels will                                              50% of differentiated hotels                                              Our differentiated hotels will achieve an
       have a credible sustainability                                              will have an environmental                                                average 24kWh and 400 litres for energy
       certification                                                               management standard                                                       and water consumption per person per night
                                                  number of hotels

                                                                                                                            number of hotels

                                                                            246                                                                       246

                                                                      202                                                                      202
       YEAR 1 PERFORMANCE                                                          YEAR 1 PERFORMANCE                                                        YEAR 1 PERFORMANCE                                             www.tuitravelplc.com
       36% of our 246 differentiated                                               24% of our 246 differentiated                                             Our 246 differentiated hotels achieved an average
       hotels had a sustainability                                                 hotels had achieved an                                                    26kWh and 494 litres for energy and water
       certification (2011: 17% of                                          36%    environmental management                                                  consumption per person per night (2011: Our 202 hotels
                                                                                                                                                      24%
       202 hotels).                                                  17%           standard (2011: 26% of 202 hotels).                         26%           averages were 27kWh energy and 518 litres water).
                                                                     FY11   FY12                                                               FY11   FY12
OVERVIEW
                                                                                                                                                                     OUR STRATEGY
19   Sustainable Holidays Report 2012                                                                                                                                DESTINATIONS
                                                                                                                                                                     CARBON
                                                                                                                                                                     COLLEAGUES
                                                                                                                                                                     CUSTOMERS
                                                                                                                                                                     DATA & GRI

     Destinations Sensatori

     Sensatori resorts showcase their ‘greener and fairer’ initiatives
     Our five-star Sensatori resorts are only available through Thomson, one of TUI UK & Ireland’s
     brands. As exclusive hotels, we want the Sensatori brand to lead the way in sustainability.
     All Sensatori properties held Travelife Gold Awards in 2012. They are also part of our
     environmental consultancy project in partnership with blueContec and Responsible Hospitality
     Partnership, which sets clear targets for energy and water reduction per hotel ( page 20).
     We want to ensure that our hotels support the livelihoods of local people. All Sensatori resorts
     have local procurement practices, so that food and other products are bought from the local
     area where practical. The majority hold ‘market evenings’, where local suppliers are invited to
     sell their products, and customers are also encouraged to take walking tours using local guides.
     For more information on Sensatori, please visit :
        www.thomson.co.uk
     You can watch a short film on our Sensatori resorts here:
       www.youtube.com

                                                                                                        “We work closely with TUI UK & Ireland on sustainability
                                                                                                         across all Atlantica hotels. We recognise that by
                                                 97%                                                     continually improving our performance in this area,
                                              of Sensatori                                               we also help drive improvements in cost management,
                                          customers rated our                                            staff engagement and the quality of the customer
                                            approach to the                                              experience. Sustainability is not only the right thing to                  www.tuitravelplc.com
                                         environment and local
                                                                                                         do, but it simply makes good business sense, and will
                                          communities ‘good’
                                              or ‘excellent’                                             remain central to how we manage our operations.”
                                                 in 2012                                                 Constantinos Victoras, Area Operations Manager
                                                                                                         (Crete, Corfu & Egypt), Atlantica Hotels & Resorts
OVERVIEW
                                                                                                                                                                                   OUR STRATEGY
20   Sustainable Holidays Report 2012                                                                                                                                              DESTINATIONS
                                                                                                                                                                                   CARBON
                                                                                                                                                                                   COLLEAGUES
                                                                                                                                                                                   CUSTOMERS
                                                                                                                                                                                   DATA & GRI

     Destinations Sensatori

     Since 2009, Sensatori Mexico has               Sensatori Tenerife focuses on                Sensatori Sharm El Sheikh is                 Our new Sensatori Resort Turkey              Sensatori Crete offers Cretan Delights
     been supporting our Jungle Jams                minimising water, energy and chemicals       supporting a number of local community       opened in Summer 2013. The hotel             market evenings, where local businesses
     project, run in conjunction with the Travel    from towel and linen changes. The hotel      initiatives, and customers can taste local   used our ‘Guidelines for Sustainability      pitch stalls at the hotel to sell traditional
     Foundation, which is preserving traditional    now offers an innovative ‘Green Stay’        beverages and buy local handicrafts from     in Hotels’ to incorporate several elements   Cretan products such as olive oil,
     skills. Mayan women from the remote            option in which customers can opt out of     the Bedouin tent, managed by members         of sustainability best practice, such        preserves, linens, woodcrafts and herbal
     community of Chumpon are earning an            housekeeping service, receiving a credit     of the local community, on the hotel’s       as solar panels to power all external        teas. The hotel also offers free village
     income selling jam to this hotel (and          against their extras bill. The majority of   beach.                                       lighting, a greywater management system,     walking tours to customers to encourage
     others in the area), giving visitors a taste   food is sourced locally, even from their         www.thomson.co.uk                        and local vegetation for landscaping.        local spending and provides irrigation
     of the real Mexico. The jams are available     organic kitchen garden on site. In 2012                                                       www.tuitravelplc.com                     to local farmers’ crops from excess
     on the breakfast buffet, incorporated          we developed a film to show at welcome                                                                                                 greywater (from basins, showers and
     into the hotel’s gourmet recipes, and          meetings, encouraging customers to                                                                                                     baths) from the hotel. Watch the film
     can be purchased at reception and in           experience the real Tenerife, buying                                                                                                   here: www.youtube.com
     the hotel gift shop.                           local handicrafts and eating at local                                                                                                      www.holidaysjustgotbetter.thomson.
         www.thetravelfoundation.org.uk             restaurants. Watch the film here:                                                                                                      co.uk
                                                       www.youtube.com
OVERVIEW
                                                                                                                                                                            OUR STRATEGY
21   Sustainable Holidays Report 2012                                                                                                                                       DESTINATIONS
                                                                                                                                                                            CARBON
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                                                                                                                                                                            CUSTOMERS
                                                                                                                                                                            DATA & GRI

     Destinations Blue Villages

     Blue Villages most popular and most sustainable                                        The Blue Village Aegean Park in             In Spring 2012, Blue Village Caldera       Blue Village Pascha Bay in Turkey is
     Our Blue Village hotels are only available through TUI Nordic. As exclusive,           Rhodes is a tailor-made, high-end family    Beach and Blue Village Creta Paradise      using high-tech solar panels on its roof
     differentiated properties, it’s important that they lead the way in sustainability.    hotel designed to be carbon neutral.        in Crete were equipped with 800 m2 of      to power the hotel, and ground cooling
     Fritidsresor, our brand in Sweden, has had an environmental code of conduct            This ambitious plan challenged previous     solar panels to heat water. This project   to help keep the swimming pool cool.
     for its hotels since the 1990s, and began seeking sustainability certification         knowledge in building resorts in Rhodes,    saved energy and carbon, and now acts      Used cooking oil from the kitchen runs
     for its Blue Village hotels in 2008. All 15 hotels are now certified.                  and was a key message in the marketing      as the benchmark for other Blue Village    the tractor which helps tend to the herbs
                                                                                            campaign when the hotel was opened.         Hotels.                                    and plants in the garden.
     TUI Nordic supports these key hotels to reach best practice sustainability
                                                                                            Energy consumption is extremely low                                                    You can see a short film on the
     performance. They offer all Blue Village hotels an initial energy assessment
                                                                                            because roofs, walls and windows are all                                               sustainability initiatives of Blue Village
     free of charge, and also finance their ISO 14001 audit. To help them achieve
                                                                                            double insulated and the air-conditioning                                              Pascha Bay here:
     certification, Blue Village hotels also receive additional environmental
                                                                                            units are cooled by cold water from the                                                   www.spreadingsmiles.com
     consultancy and are invited to annual supplier conferences on sustainability,
                                                                                            bedrock.
     hosted by TUI Nordic.
     Together, the 15 Blue Village hotels have saved hundreds of thousands
     of Euros by using energy and water more efficiently. Their efforts benefit
     TUI Nordic as well: the Blue Village Aegean Park in Rhodes, designed to
     be carbon neutral, was the most profitable hotel and had the highest
     customer satisfaction in the Nordic region.

                                       Blue Village hotels operate to high sustainability
                                       standards. On average, they use 15kWh of
                                       energy and 300 litres of water per guest night.
                                       Since 2008, they have reduced their energy use
                                       by an average of 20%.
OVERVIEW
                                                                                                                                                                                             OUR STRATEGY
22   Sustainable Holidays Report 2012                                                                                                                                                        DESTINATIONS
                                                                                                                                                                                             CARBON
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                                                                                                                                                                                             DATA & GRI

     Destinations economic contribution

     In many destinations, TUI Travel accounts for a significant                  Our experience is that all-inclusive hotels generally employ   Destination impacts of all-inclusive holidays
     percentage of tourist arrivals. That means we contribute,                    greater numbers of staff and purchase more food, beverage      We recognise that a high concentration of all-inclusive
     directly or indirectly, a significant percentage of jobs,                    and services, than other types of hotel. Our all-inclusive     hotels in a resort can impact on the ambience and character
     tourism-related businesses and tax revenues in destination                   customers also take up to 20% more excursions whilst           of holiday destinations.
     countries.                                                                   on holiday.
                                                                                                                                                 In 2012, we worked with the Overseas Development Institute
     Monitoring and improving the local economic contribution                     We support the Travelife sustainability certification, under   (ODI) on an in-depth study of local economic impact at three
     of a hotel is challenging – but despite these challenges, we                 which hotels must demonstrate local purchasing, fair wages     of our Holiday Village resort hotels, in Turkey, Greece and
     are committed to making our holidays more sustainable                        and working conditions, and advice for holidaymakers on        Tunisia. The research found that employment, procurement
     in terms of local economic impact.                                           local customs and attractions. For more details, page 17.      and customer discretionary spend are the biggest drivers
     All-inclusive holidays                                                       Our Sensatori resorts have local procurement policies,         of local economic impact, and that these could be improved.
                                                                                  hold ‘market evenings’ with local suppliers, and encourage     Since then, we have initiated projects in Rhodes, Tunisia and
     We are experiencing strong and growing demand for                                                                                           Turkey that address a number of the recommendations.
                                                                                  customers to take walking tours using local guides.
     all-inclusive holidays.
                                                                                  For more details, page 21.                                     We will continue to look for ways to measure the local
     We are mindful that this type of holiday evokes strong                                                                                      economic impact of holidays, and share the findings with
     opinions. In our view, the key issue is whether a hotel is                                                                                  the industry.
     being operated responsibly, whatever its board basis,
     which includes seeking to improve its local economic                                                                                        Read more on economic contributions:
     contribution.                                                                                                                                  www.tuitravelplc.com

                                                                                                                                                                                                                 www.tuitravelplc.com

                                      Tourism makes a real difference to                                                                         Between 2007 and 2010, the market
                                      livelihoods of people across the world,                                                                    share of all-inclusive doubled from
                                      accounting for 9% of global GDP*.                                                                          17% to 34% in the UK, driven in part
                                      *World Travel and Tourism Council’s World                                                                  by difficult economic conditions**.
                                      Economic Impact Report 2012                                                                                **GfK Ascent 2010
OVERVIEW
                                                                                                                                                                                    OUR STRATEGY
23   Sustainable Holidays Report 2012                                                                                                                                               DESTINATIONS
                                                                                                                                                                                    CARBON
                                                                                                                                                                                    COLLEAGUES
                                                                                                                                                                                    CUSTOMERS
                                                                                                                                                                                    DATA & GRI

     Destinations projects

     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 2012 this included Greece, Spain, Cyprus, Tunisia, Egypt, Turkey, Thailand, Mexico, Brazil, Dominican Republic, Cape Verde and Kenya.
     Our projects cover eight themes which address key material issues for TUI Travel:

              Supporting communities                                  Saving water                                                Reducing waste                                          Protecting biodiversity
      We support several sustainable tourism community        Tourism is a thirsty industry and can often put             Waste management is an important issue for hotels       Many tourism destinations are special because of
      projects with partners across the globe, and we are     pressure on local water supplies. As well as working        and destinations and is a growing priority for TUI      their biodiversity, and protecting them is a priority
      engaging with experts to increase the economic          with our hotels to reduce water consumption, we             Travel on the ground. Our project in Rhodes, in         for TUI Travel. Our activities range from supporting
      benefits our holidays bring to local communities. For   support clean water projects around the world. For          partnership with Atlantica Hotels & Resorts and         sea turtle protection projects in Turkey, Greece and
      example, in partnership with The Travel Foundation,     example, through water charities Just a Drop and            The Travel Foundation, aims to demonstrate to           Mexico, to reforestation projects in Majorca and
      TUI UK & Ireland is supporting farmers in Turkey        Pump Aid, we support clean water projects in Kenya,         hotels on the island they can reduce the amount         Madagascar. In Kenya, the forest project we support
      through the Taste of Fethiye project, which creates     Bolivia, Uganda, Zimbabwe, Malawi and Liberia. In           of waste they produce and increase their recycling      was the first in the world to be issued with Reduced
      links between hotels and local farmers. In the first    Uganda, we’re working with Just a Drop and the              rates. We helped five hotels in Rhodes to reduce        Emissions from Deforestation & Degradation
      season of this project, 22 farmers in five villages     Kituntu Women’s Association to bring safe, clean            the amount of waste going to landfill by an estimated   (REDD) credits, offering a financial incentive for
      supplied 100 tonnes of fresh fruit and vegetables       water and effective sanitation to around 1,250              38% during the 2012 Summer season.                      the community to preserve its forests and invest
      to nearby hotels.                                       people in five villages near the capital of Kampala.           www.thetravelfoundation.org.uk                       in their livelihoods and education.
          www.spreadingsmiles.com                                 www.justadrop.org                                                                                                  www.carbonneutral.com

              Animal welfare                                          Protecting children                                         Investing in training                                   Reducing carbon
      Many of our customers want to visit attractions on      We are committed to child protection, both for the          We invest in training for suppliers and other           As well as our strategy to reduce carbon emissions
      holiday that involve animals. The welfare of animals    children we take on holiday and those in the destinations   stakeholders to give them the skills they need to       across our operations, we contribute to carbon
      in captivity is a concern for both our customers and    we serve. For example, we support a child protection        deliver more sustainable holidays. TUI Travel is the    emissions reduction projects around the globe. Our
      our business, and we continue to audit our suppliers    project in Northeast Brazil and in November 2012,           largest industry supporter and donor to The Travel      investments in clean energy and energy efficiency
      against animal welfare standards. We were actively      we formed a three year partnership with the German          Foundation, who over the last 10 years have trained     projects in key destinations are set to deliver a million
      involved in the development of the industry’s first     Government Development agency GIZ, The Code and             more than 10,000 local people in skills to boost        tonnes of CO2 savings by 2014, including exclusively
      ever Global Welfare Guidance for Animals in Tourism,    other industry partners to combat child sex tourism         tourism, reduce environmental impacts and improve       funding two wind farms in Turkey which bring
      produced by ABTA and launched in June 2013.             in Thailand. TUI Travel’s Mainstream businesses are         customer experience – and also trained 800 hotels       renewable energy to the local coastal communities.
      Read about our policy and standards here:               signed up to the Child Protection Code.                     to reduce energy, water and waste.                         www.spreadingsmiles.com
          www.tuitravelplc.com                                Our policy:     www.tuitravelplc.com                           www.thetravelfoundation.org.uk
                                                                  www.thecode.org
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