Policies & controls

Internal controls

The TUI Travel Board has overall responsibility for the Group’s system of internal control and for reviewing its effectiveness. The management team at TUI Travel is then responsible for implementing Board policies on risk and control.

Our internal control and risk management have been developed to ensure compliance with the UK Corporate Governance Code on internal control and risk management. The Group Audit Services team reviews independently the controls implemented by management and reports its findings regularly to the Audit Committee. The Group also operates an Enterprise-wide Risk Management framework which is integrated within the short and long-term business planning processes. Click here for more on internal controls and risk management. 

Suppliers

TUI Travel benefits from both its economies of scale and application of purchasing power. Our principal suppliers are hotel owners and operators and aircraft suppliers. Amongst others, our key strategic relationships are with hotel chains such as RIU, Fiesta, Atlantica and aircraft providers such as Boeing. Each source market has local and overseas teams to engage in effective procurement strategies to deliver optimum benefits to TUI Travel. Co-operative working is fundamental to our relationships with key suppliers to ensure that the highest standards in terms of health and safety and quality are maintained. Suppliers falling below these expectations will be removed from our programmes.

The operating units within the Group are responsible for agreeing the terms and conditions under which business transactions with their suppliers are conducted. Due to the nature of the Group’s operations and in common with the industry as a whole, payments are often made in advance for the provision of goods and services. The Group does not follow any code or statement on payment practice but it is Group policy that payments to suppliers, whether in advance or after the provision of the goods or services, are made on the basis of the terms that have been agreed with them.

Anti-bribery & corruption

The TUI Travel Group Code of Conduct (the Code), which was first published in August 2008, made it clear that the Group will not tolerate any type of corruption or bribery whether public, private, active or passive.

The Group’s policy was further amplified in July 2011 when a detailed policy on procedures for the prevention of bribery and corruption (the Anti-Bribery Policy) was issued to all employees worldwide and posted on the Group intranet to take account of the provisions of the Bribery Act 2010. Great importance is attached to adherence with the Anti-Bribery Policy and, therefore, extensive training is taking place throughout the Group. This training is delivered by a combination of internet exercises and interactive presentations.

Whistle-blowing

There are policies and procedures for the reporting by employees and the resolution of suspected fraudulent activities. It is the policy of the Group to employ staff and management of high integrity, to train them appropriately and to require compliance with all relevant laws, regulations and internal policies.

For all employees on a UK contract (approximately 18,000), and for almost 6,000 German colleagues (together representing approximately 50% of all employees across the Group), confidential employee hotlines are in place using third party providers. Employees can make confidential reports about any issues they would like to raise. Plans are in place to make whistle-blowing hotlines available, where the law permits, to all Group employees by the end of the calendar year 2012. However, irrespective of whether hotlines are available, all employees are aware of the provisions in the TUI Travel Code of Conduct (the Code) which encourages them to report any lack of compliance with the Code to their immediate supervisor or other suitable Group function.