TUI’s ‘workation’ packages meet growing trend combining travel and remote working

TD Editor

With travel demand expected to return slowly, TUI is turning to alternative markets such as the growing trend for a combined travel and remote working experience as it launches a new ‘workation’ package in a bid to become a leading provider of this new travel service, says GlobalData.

Gus Gardner, associate travel and tourism analyst at GlobalData, comments: “Due to the pandemic working from home is now standard practice for many and workations could rise in popularity as more work flexibility is introduced as the nation heads back to the office. TUI has recognized this growing trend early and designed its package with remote working essentials in mind including Wi-Fi and a dedicated workspace in 30 of its global hotels. Remote working could become a mainstay for many, and TUI’s early entry into the workation market could see it become an early market leader.”

A GlobalData poll has shown a high preference for fewer visits to the office post-COVID-19 with 29% of global respondents only wishing to visit the office monthly, quarterly, or when requested by management. A further one in five (21%) never want to visit the office again.

Gardner adds: “The shift in remote working and peoples preference to visit the office less frequently demonstrates a good market opportunity for TUI’s workation packages. The COVID-19 pandemic forced remote working on most office workers, and their shift in sentiment highlights a desire to retain current arrangements. Many will be desperate to get away, and a change of scenery could provide a productivity boost.”

Another GlobalData poll found that 45% of respondents said better opportunities to focus is a reason to retain remote working. Escaping on a workation will provide a new remote work experience away from the distractions of the home and with all-inclusive dining included, employees can focus on work without the added burden of everyday tasks.”

Gardner concludes: “TUI is the first tour operator to offer specific packages for remote workers. Even though some hotels groups have offered similar packages to TUI, most only offered the day use of a room. The tour operator has combined the essential remote working requirements with a relaxing stay in its hotels.

“With travel demand expected to take time to rebound, targeting the increasing demand for remote working by offering workation packages could pay off for TUI and support a quicker return to pre-COVID revenue levels for the tour operator.”

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