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Fritz Joussen
CEO, Tui
Age:
Years as a CEO:
Tenure: 2
Industry: Transport
CEO DOSSIER
After years playing a crucial part in building up the mobile phone industry in Germany, Fritz has made a leap into another industry entirely by joining the travel giant TUI Group. But will he achieve his aims of cutting costs and increasing the value of the firm’s shares?
early years
Friedrich, known as Fritz, was born in Duisberg in Germany on 19 April 1963. He graduated with a degree in electrical engineering at RWTH Aachen University. After university he headed to the U.S to gain some professional experience working for Tektronix in Portland, Oregon. He then headed back to Germany in 1988 to work for Mannesmann AG. He was one of the first managers at Mannesmann Mobilfunk when the company’s mobile business was launched and he played an important part in establishing Germany’s mobile industry. He held a number of management roles in group strategy, innovation management and marketing. He became Mannesmann Mobilfunk’s marketing director in 1997, a position he held for three years.
When Vodafone took over the Mannesmann Group in 2000, Fritz became head of global product management at the Vodafone Group in Newbury, UK. He was one of the key architects of Vodafone live! getting it ready for its launch in 2002. After three years in the UK, he returned to Germany in 2003 and became chief operating officer of Vodafone Deutschland.
In 2005 he was promoted to the position of Vodafone Deutschland’s CEO – the largest operating company in the global Vodafone Group. He oversaw the purchase of fixed-line carrier Arcor AG and Fritz then transformed the company from being solely a mobile phone firm to being an integrated telecommunications group.
He was also a member of the board of the group-owned venture capital company Vodafone Ventures and was a member of the CEO Council and the Strategy Board of the Vodafone Group.
He stepped down as CEO of Vodafone Deutschland in September 2012. He said: “After more than 20 years with Mannesmann and Vodafone, with nine years at the helm in Germany as COO and CEO, it’s now the right time to pass the torch. Vodafone Germany stands on a stable foundation, upon which my successor can work to continue our company’s road to success.”
It was initially thought that Fritz would stay with Vodafone taking on an international post with authority over several markets. But in October 2012 he became a member of the executive board of travel firm TUI AG, becoming its CEO at its annual general meeting on 13 February 2013.
As ceo
As soon as Fritz took over at TUI, he made it clear he would have a low tolerance for under-performing businesses. And he has indicated he will look to sell TUI’s 22% stake in loss-making shipping group Hapag-Lloyd if the market conditions are right so the group can focus on tourism. If he does not sell the stake to a third party, he may call for a flotation.
It is early days for Fritz at TUI, but he is expected to look for ways to cut costs to raise the firm’s 5.6% operating margin. One money-saving solution Fritz is looking into is getting rid of one of the company’s headquarters – it currently has two one in Hanover, Germany and one in London, UK. He has already spoken of plans to cut a third of the Hannover base’s 180 staff.
He is spending his first few months as CEO looking carefully at each area of TUI’s business to see how it can be improved. He said: “I have no patience if a part of our company does not deliver the right performance.” He is also looking to make the company’s structure more efficient and transparent.
Fritz’s predecessor Michael Frenzel was at the helm at TUI for 19 years but while he expanded the business into Europe’s largest tourism company, shares fell by around 35% during his time in charge. Ingo Speich, a fund manager at Union Investment in Frankfurt, said: “His era was a regency of demise. For shareholders, it was two lost decades.”
Shareholders are hopeful they will see a better return on their investment now Fritz is in charge. Fritz wants to increase the value of TUI’s shares to make a merger with TUI Travel a more realistic option, saying that at the moment the holding company “destroys value”.
On 25 March 2013 he became chairman of the TUI Travel board of directors, replacing Mr Frenzel six months earlier than originally planned. TUI Travel is responsible for approximately 96% of TUI’s revenue so it is thought the move will allow Fritz to take more control over the UK-based subsidiary.
Fritz told German business magazine Wirtschaftswoche that he wants to reduce sales of third-party holidays in TUI travel agencies in Germany with staff focusing on selling TUI products instead. He also intends to add another 400 outlets to TUI’s German network of 1,200 stores. This viewpoint has attracted criticism from people in the industry keen to protect the traditional travel agency sales structure.
Away from work
Fritz likes driving Porsches and playing football at an amateur level.
Leadership and philosophy
Fritz describes himself as a “hunter”, an “attack warrior” and a “strategist”. He is not afraid to take action when needed and is decisive in attacking weaknesses so he can put his efforts into building on the strength of companies.
He says: “I have always followed the strategy to work on the strengths of the company and not waste too much time trying to improve weaknesses. My patience ends where a division is not performing. Where there is weakness we need to act."
He also describes himself as a free spirit. His father had wanted him to follow in his footsteps and go into law but Fritz was determined to make his own path and so he chose to study electrical engineering.
Fritz has a copy of Harvard business professor Michael Porter’s book ‘Competitive Strategy’ from 1980 and he says he still follows it to this day and has a copy in his office. He says: “When I start to analyze a business, I get this as a case study.” He admits he doesn’t know a lot about travel but says the same business principles apply whether he is selling mobiles or holidays. He adds: "Big problem situations are like a giant Sudoku."
His friend Friedrich von Metzler, the Frankfurt banker, says Fritz is grounded and down-to-earth but also impressive. He is not afraid to get down to a grass-roots level to understand the business. In the months leading up to his appointment as CEO at TUI, he spent several days working at one of the company’s travel agency to get a better understanding of how the firm worked on the ground. Fritz said:
“I learned a lot about our own business, about the brand, sales, our booking software and our customers.”
Our Three Questions
1. Many people expected you to remain with Vodafone taking on a more international role. What made you take the leap from mobile phones to travel?
2. Your idea of reducing the sale of third-party holidays at TUI stores has attracted widespread criticism. What would you say to your critics?
3. What do you see as your main priority for your first year in charge at TUI?
Colleagues, Friends & Analysts' report
Date Written
04-04-2013Sources
Bloomberg Businessweek
Fvw.com
PR Newswire
TUI Group website
Travelweekly.co.uk
Faz.net
Reuters
Bloomberg Businessweek
Fvw.com
PR Newswire
TUI Group website
Travelweekly.co.uk
Faz.net
Reuters
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Latest News
TUI Group buys Europa 2 ship
Fritz Joussen, CEO of the TUI Group said “The acquisition of the EUROPA 2 enables us to achieve further improvements in the results of Hapag-Lloyd Kreuzfahrten. We expect the transaction to already create positive earnings effects in the current ... read more...
2015-01-09 10:21:15
TUI assumes ownership of cruise ship EUROPA 2
Fritz Joussen, CEO of the TUI Group "The acquisition of the EUROPA 2 enables us to achieve further improvements in the results of Hapag-Lloyd Kreuzfahrten. We expect the transaction to already create positive earnings effects in the current financial year ... read more...
2015-01-09 07:15:08
TUI Group A Cheap Bet on Leisure Travel
Long, who will co-lead TUI Group with TUI CEO Fritz Joussen before becoming chairman in February 2016, sealed exclusivity deals with certain hotel operators, with the result that 71% of TUI’s offerings are now unavailable through other travel companies. read more...
2014-12-27 08:34:59
TUI Group A Cheap Bet on Leisure Travel
Long, who will co-lead TUI Group with TUI CEO Fritz Joussen before becoming chairman in February 2016, sealed exclusivity deals with certain hotel operators, with the result that 71% of TUI’s offerings are now unavailable through other travel companies. read more...
2014-12-27 08:34:59
TUI Group A Cheap Bet on Leisure Travel
Long, who will co-lead TUI Group with TUI CEO Fritz Joussen before becoming chairman in February 2016, sealed exclusivity deals with certain hotel operators, with the result that 71% of TUI’s offerings are now unavailable through other travel companies. read more...
2014-12-26 23:59:35
TUI Group A Cheap Bet on Leisure Travel
Long, who will co-lead TUI Group with TUI CEO Fritz Joussen before becoming chairman in February 2016, sealed exclusivity deals with certain hotel operators, with the result that 71% of TUI’s offerings are now unavailable through other travel companies. read more...
2014-12-26 23:59:35
Merged TUI Group begins trading
The merger of TUI AG and TUI Travel PLC has been completed, with the combined TUI Group now trading on the London Stock Exchange. The group’s joint CEOs Fritz Joussen and Peter Long opened the day’s trading this morning to mark the start of the merged ... read more...
2014-12-17 09:22:38
TUI AG and TUI Travel complete merger
Joint chief executive Peter Long said "Personally, I am very excited about what the future holds and the opportunities that lie ahead for us as TUI Group." Joint chief executive Friedrich Joussen said "Our 77,000 employees in 130 countries make sure that ... read more...
2014-12-17 07:35:15
Completion of merger
The business is stronger as one TUI and with the new management structure in place our shareholders should look forward to the future." Friedrich Joussen, Joint Chief Executive of TUI AG, said "Today is a great day for our company. The first day of the ... read more...
2014-12-17 06:52:18
TUI AG returns to profit
just before it's merger with TUI Travel. Net profit after minorities was €104.7 million for the year ending September, up from a loss of €11.1 million the year before. Chief executive Fritz Joussen said the company had 'significantly outperformed' its ... read more...
2014-12-11 12:07:14
Tui AG closes in on €1 billion core profit target
Meanwhile in its cruises sector, which consists of Hapag-Lloyd Kreuzfahrten and Tui Cruises, the group reported an operating result €9.7 million. Fritz Joussen, chief executive of Tui AG “We have delivered on our promises We have significantly ... read more...
2014-12-11 11:09:58
TUI AG returns to profit
just before it's merger with TUI Travel. Net profit after minorities was €104.7 million for the year ending September, up from a loss of €11.1 million the year before. Chief executive Fritz Joussen said the company had 'significantly outperformed' its ... read more...
2014-12-11 10:48:29
Tui AG closes in on €1bn core profit target
Meanwhile, in its cruises sector, which consists of Hapag-Lloyd Kreuzfahrten and Tui Cruises, the group reported an operating result of €9.7 million. Fritz Joussen, chief executive of Tui AG, said “We have delivered on our promises we have ... read more...
2014-12-11 10:41:20
Tui AG closes in on €1 billion profit target
... coming into reach in the current year as it reported its final set of results ahead of its merger with Tui Travel. Chief executive Fritz Joussen said the new group's turnover would rise between 2% and 4% in the current financial year to the end of ... read more...
2014-12-11 07:20:54
Tourism giant TUI back in black, eyes post-merger boost
The improvement was partly due to lower interest costs and one-off expenses. Fritz Joussen, chief executive of TUI, said in the statement that the company had "significantly outperformed" against its targets. "We have now launched the growth phase ... read more...
2014-12-10 17:37:42
TUI AG announces ‘successful’ full year following merger with TUI Travel
A merger with British leisure travel group TUI Travel is expected to be completed next week. The group believes the merger will form the world’s number one integrated tourism group. Chief executive Fritz Joussen said ‘We have delivered on our promises ... read more...
2014-12-10 16:18:57
TUI AG announces "successful" full year following merger with TUI Travel
A merger with British leisure travel group TUI Travel is expected to be completed next week. The group believes the merger will form the world's number one integrated tourism group. Chief executive Fritz Joussen said "We have delivered on our promises ... read more...
2014-12-10 16:18:57
TUI AG announces "successful" full year following merger with TUI Travel
A merger with British leisure travel group TUI Travel is expected to be completed next week. The group believes the merger will form the world's number one integrated tourism group. Chief executive Fritz Joussen said "We have delivered on our promises ... read more...
2014-12-10 15:28:51
TUI AG announces "successful" full year following merger with TUI Travel
A merger with British leisure travel group TUI Travel is expected to be completed next week. The group believes the merger will form the world's number one integrated tourism group. Chief executive Fritz Joussen said "We have delivered on our promises ... read more...
2014-12-10 14:38:44
TUI AG announces "successful" full year following merger with TUI Travel
A merger with British leisure travel group TUI Travel is expected to be completed next week. The group believes the merger will form the world's number one integrated tourism group. Chief executive Fritz Joussen said "We have delivered on our promises ... read more...
2014-12-10 14:38:44
Tourism giant TUI back in black, eyes post-merger boost
The improvement was partly due to lower interest costs and one-off expenses. Fritz Joussen, chief executive of TUI, said in the statement that the company had "significantly outperformed" against its targets. "We have now launched the growth phase ... read more...
2014-12-10 12:22:44
Tourism giant TUI back in black, eyes post-merger boost
The improvement was partly due to lower interest costs and one-off expenses. Fritz Joussen, chief executive of TUI, said in the statement that the company had "significantly outperformed" against its targets. "We have now launched the growth phase ... read more...
2014-12-10 12:01:15
Tourism giant TUI back in black, eyes post-merger boost
The improvement was partly due to lower interest costs and one-off expenses. Fritz Joussen, chief executive of TUI, said in the statement that the company had "significantly outperformed" against its targets. "We have now launched the growth phase ... read more...
2014-12-10 11:54:06
Tourism giant TUI back in black, eyes post-merger boost
The improvement was partly due to lower interest costs and one-off expenses. Fritz Joussen, chief executive of TUI, said in the statement that the company had "significantly outperformed" against its targets. "We have now launched the growth phase ... read more...
2014-12-10 11:46:56
TUI posts earnings gain as it gears up for merger
We have now launched a growth phase that will gain momentum through the successful merger with TUI Travel PLC," said chief executive Fritz Joussen. "As a fully integrated tourism group, we are perfectly positioned for further, accelerated growth in the ... read more...
2014-12-10 10:35:21
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Financials
Business summary
Employees: 54,000
TUI Travel PLC operates as a leisure travel company worldwide. It operates in three segments: Mainstream Sector, Specialist & Activity Sector, and Accommodation & Destinations Sector. The companys Mainstream Sector engages in the distribution, tour operating, and airline businesses. It operates 3,500 retail travel shops and 6 airlines, which consist of approximately 141 aircrafts. This Sector offers its services primarily under the brands of TUI, Thomson, Arke, Jetair, and Fritidsresor, as well as Blue Village, Sensimar, and Holiday Villages. Its Specialist & Activity Sector provides holiday services, including skiing, sailing, safaris and nature, polar expeditions, sports tourism, volunteering, cycling and trekking holidays, cultural tours, canal boating, family activity, sustainable travel, and educational travel services. This Sector offers its services primarily under the Crystal, Hayes & Jarvis, The Moorings, Educational Tours Inc, Brightspark, and Le Boat brands. The companys Accommodation & Destinations Sector provides various travel services comprising hotel accommodation, transfers, excursions and tours, meetings and events, and cruise handling services to the tour operators, travel agents, and corporate clients, as well as direct to the consumers through online brands, LateRooms.com and AsiaRooms.com. This Sector offers its services under the Hotelbeds, LateRooms, Bedsonline, AsiaRooms, and Intercruises brands. The company is based in Crawley, the United Kingdom. TUI Travel PLC is a subsidiary of TUI AG.
Data supplied by Yahoo! Finance.
Click here for more detailed financial information on Tui from Yahoo!
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