TUI Group has acquired Milan-based tours and activities startup Musement, which will initially be managed as an independent unit within TUI Destination Experiences, the group’s Spanish subsidiary.
With worldwide revenues of 150 billion euros (US$174.9 billion) and annual growth of seven per cent, the experiences market is one of the most attractive tourism segments, TUI said in a statement.
TUI said the tours and activities market of suppliers is still highly fragmented. More than 90 per cent of the around 350,000 companies are small providers generating annual revenues of less than one million euros, almost exclusively depending on one-off customers. Musement’s online platform serves these small companies by providing them with a digital market place – reaching out to 20 million TUI guests and as well as third party customers in future.
Founded five years ago, Musement today offers around 35,000 products in 1,100 cities around the world. Its portfolio ranges from admission tickets for museums, events and attractions via guided tours, to boat and bicycle tours. Musement has 130 employees and one million users.
With the acquisition, TUI expects earnings growth will be delivered through a broader product range and stronger digitalisation of the business. Customers will be able to create their own individual experiences from a range of products.
“We are aiming to provide the most highly personalised experiences possible to our 20 million customers. This will require a stronger digitalisation of our business. For me, digitalisation and personalisation are inextricably linked and constitute the key success factors for the future of tourism. With the acquisition of Musement, we are taking a further crucial step in this direction,” said Fritz Joussen, CEO, TUI Group.
Alongside Hotels & Resorts and Cruises, TUI Destination Experiences is one of TUI Group’s three growth areas. The company had only completed the merger with Hotelbeds Group’s Destination Management in August of this year. TUI Destination Experiences’ global footprint now comprises 49 countries, where the company employs its own staff and is among the leading providers of destination experiences.