Welcome to TUI Travel’s first full Sustainable Development Report, covering the financial year 2007/08.

This year has been one of great financial upheaval in global markets. TUI Travel is in a strong position to withstand this current economic crisis, due to our robust business model, the diversity of our businesses, our market-leading brands and the synergies we are achieving following our merger in September 2007.

We cannot control the effect that the economic crisis will have on other businesses throughout the world – but we can ensure that our own response includes making all aspects of our business more sustainable. We recognise that it is our responsibility to monitor and manage our negative impacts on the environment and society and to maximise our positive impacts.

In terms of sustainability, our vision is to make travel experiences special by providing holidays that cause minimal environmental impact, respect the culture and people of destinations, and offer real economic benefit to local communities. We aspire to lead in sustainable development within the leisure travel industry and want to develop this in the wider marketplace. In the long term, we believe this goal will help build shareholder value for TUI Travel and contribute to us operating a strong business now and in the future.

This report highlights the progress we have made in sustainable development over the past year. This includes reducing our airlines’ carbon footprint, developing a Groupwide approach to managing suppliers’ sustainability and motivating our customers, colleagues and suppliers to get involved. The report also outlines the many challenges we still face.

What does the future hold for TUI Travel’s sustainable development strategy? During this year we took a significant step towards creating a leading leisure travel group in Russia and CIS, and we will be working to understand the sustainable development issues within these markets and to build them into our strategy. We will continue the excellent start we made in 2007/08, making sustainability the standard across the Group where possible, and enabling our sectors to tailor our Group goals to their specific circumstances.

Peter Long, Chief Executive, TUI Travel PLC

Over the past few years, the business community has begun to understand and embrace its responsibilities towards the environment and society. Given some commentary of the current economic crisis, however, you'd be forgiven for thinking that businesses were returning to focus narrowly on purely financial goals.

The current situation may be difficult, but I believe sustainable development remains an imperative for all businesses. If anything, the current ‘perfect storm’ of social, economic and environmental challenges helps us to see more clearly the need for action – and the benefits that this will bring us all in the long term. I believe TUI Travel is in an excellent position to build on our positive contribution to a more sustainable world, articulated through the sustainable development strategy we formed throughout 2007/08.

As a company, we strive to minimise our negative impacts on the environment, especially our carbon footprint. Our airlines, which account for 90% of this carbon footprint, saved 57,000 tonnes of carbon dioxide in 2007/08, through our Groupwide fuel conservation programme. This year, we have set up additional programmes to monitor and reduce carbon emissions from water transport, ground transport, major premises and our flagship accommodations.

As well as managing our own impact on the environment and society, we recognise the importance of encouraging our suppliers to do the same. We are working to define minimum standards for suppliers across the Group and giving particular support to the properties to which we send high volumes of customers.

The next few years will be exciting and challenging for sustainable development in the leisure tourism industry. We need to prepare for the advent of a low-carbon society by reducing our impact on climate change, while ensuring we preserve the social and economic benefits of tourism – both for the traveller and the host community. I firmly believe that TUI Travel is equal to this challenge, and I look forward to keeping you updated on our progress in the years to come.

Johan Lundgren, Managing Director, TUI Northern Region
PLC Board representative for sustainable development