Strategy

We have a clear strategic goal to create superior shareholder value by being the world’s leading leisure travel group providing customers with the widest choice of differentiated and flexible travel experiences to meet their changing needs.

In order for us to achieve our strategy we are focused on four areas - Product & Content, Distribution & Brands, People & Operational Effectiveness and Growth & Capital Allocation. We measure the delivery of these four areas by our key performance indicators:

Product & Content

• Different products to our competitors and unique in the marketplace
• High customer retention and repeat booking rates
• Earlier booking trends

Distribution & Brands

• Highly trusted brands that provide value and quality
• Broadening customer choice
• Building our customer relationships

People & Operational Effectiveness

• Our colleagues are key to our success
• Flexible business model that can react to demand changes
• Development of sophisticated capacity and yield management systems
• Underlying operating profit margin up 30 basis points from 2.9% to 3.2%
• Integration progressing well with total synergies upgraded to £200m

Growth & Capital Allocation

• Acquired 11 niche high-growth businesses in Specialist Sectors
• Growth plans are progressing well in Russia & CIS
• Consolidation of the Canadian market through a proposed strategic venture with Sunwing
• Underlying operating profit up 11% to £443m
• Increase in return on invested capital to 9.2%

For further information on our KPIs, please refer to our Annual Report & Accounts 2009.