(Alliance News) - Tour operator TUI AG has decided to halt pre-payments and suspend contracts with some of its hotels to survive the severe downturn in the travel industry caused by coronavirus, the Financial Times reported on Thursday.
"We are in close contact with our hotel partners worldwide, jointly reviewing options for capacity management, to mitigate the impact for both Tui and its partners," the company told the newspaper.
TUI also stated that it had frozen recruitment and was considering cutting staff hours.
According to the FT, citing hoteliers in Spain and Greece, TUI was in talks with a number of operators to invoke "force majeure" clauses in contracts and temporarily stop payments.
https://www.ft.com/content/1d384970-6478-11ea-a6cd-df28cc3c6a68
By Tapan Panchal; tapanpanchal@alliancenews.com
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TUI AG (TUI)