ventures were included in TUI AG's consolidated financial statements on the basis of at equity measurement. For details on principles and methods underlying the consolidated financial statements and TUI Group shareholdings see pages 154 and 244. Organisation and management TUI AG is a stock corporation under German law, whose basic principle is two-tiered management by two boards, the Executive Board and the Supervisory Board. The Executive and Supervisory Boards cooperate closely in governing and monitoring the Company. The Executive Board is responsible for the overall management of the Company. The appointment and removal of Board members are based on Sections 84 et seq. of the German Stock Corporation Act in combination with Section 31 of the German Co-Determination Act. Amendments to the Articles of Association are effected on the basis of the provisions of Sections 179 et seq. of the German Stock Corporation Act in combination with Section 24 of TUI AG's Articles of Association. Executive Board and Group Executive Committee As at the balance sheet date, the Executive Board of TUI AG consisted of the CEO and five other Board members. For details on Executive Board members see page 104. A Group Executive Committee was set up in order to manage TUI Group strategically and operationally. As at 30 September 2020, the Committee consisted of twelve members, who meet under the chairmanship of CEO Friedrich Joussen. After the balance sheet date, the Supervisory Board resolved to reshuffle the Group's management with effect from 1 January 2021. For details see: www.tuigroup.com/en-en/investors/corporate-governance TUI Group reporting structure TUI Group is a global integrated tourism group. Its core businesses, Holiday Experiences and Markets & Airlines, are clustered into the segments Hotels & Resorts, Cruises and TUI Musement (previously Destination Experiences) as well as three regions: Northern, Central and Western Regions. TUI Group also comprises All other segments. With the exception of the following reclassifications, the Group's management structure is thus comparable year-on-year. In February 2020, we agreed to sell Hapag-Lloyd Kreuzfahrten to the joint venture TUI Cruises. In July 2020, all necessary approvals including merger clearance by the EU Commission had been fulfilled, and the transfer of title to the Hapag-Lloyd Kreuzfahrten vessels was completed during that month. We have already received the major part of the purchase price for Hapag-Lloyd Kreuzfahrten; the remainder will be paid within one year upon the completion of the ship transfers. Hapag-Lloyd Cruises is thus part of TUI Cruises, and will continue to be managed under the existing traditional brand. In the period under review, TUI changed the allocation of the items on the profit and loss statements of the aircraft leasing companies who hold TUI Group's aircraft and lease them to the Group's airlines. Since the financial year under review, these items have been fully allocated to the airlines using the corresponding aircraft (Northern Region, Central Region and Western Region). In the 2019 Annual Report, only the result from intra-Group aircraft leasing had been allocated to the relevant airlines, while the other items were carried in All other segments. The prior year's comparatives have been restated accordingly. Holiday Experiences Holiday Experiences comprises our hotel, cruise and destination activities. Hotels & Resorts The Hotels & Resorts segment comprises TUI Group's diversified portfolio of Group hotel brands and hotel companies. The segment includes hotels majority-owned by TUI, joint ventures with local partners, stakes in companies giving TUI significant influence, and hotels operated under management contracts. In financial year 2020, Hotels & Resorts comprised a total of 355 hotels with 266,002 beds. 329 hotels, i. e. the majority, are in the four- or five-star categories. 46 % were operated under management contracts, 42 % were owned by one of the hotel companies, 11 % were leased and 1 % of the hotels were managed under franchise agreements. Hotels & Resorts portfolio Hotel 3 stars 4 stars 5 stars Total Beds Main brand hotels sites Riu 3 49 47 99 101,528 Spain, Mexico, Caribbea n, Cape Verde, Portugal , Morocco Robinson 1 17 7 25 15,321 Spain, Greece, Turkey, Austria Blue 3 12 18 33 30,610 Cuba, Diamond Dom. Rep., Jamaica, Mexico, Saint Lucia Other 19 112 67 198 118,543 Spain, hotel Greece, companies Turkey, Egypt Total 26 190 139 355 266,002 As at 30 September 2020 Riu is the largest hotel company in the portfolio of Hotels & Resorts in terms of the number of hotels. The Mallorca-based enterprise primarily operates four- and five-star hotels in Spain, Mexico and the Caribbean. Its three product lines Riu Clubhotels, Riu Plaza (city hotels) and Riu Palace (premium segment) target different customer groups. Robinson operates mainly four- and five-star club hotels and is a leading German provider of club holidays. Most of its clubs are located in Spain, Greece, Turkey, the Maldives and Austria. Blue Diamond is a hotel chain in the Caribbean. The Hotels & Resorts segment comprises 33 resorts in the Caribbean and Mexico. Other hotel companies include in particular the flagship brand TUI Blue and TUI Magic Life. TUI Blue is TUI Group's youngest hotel brand, targeting an international audience. Its portfolio is being expanded by combining TUI Blue's existing offerings with those of the concept brands TUI Sensimar and TUI Family Life. Including the hotels rebranded as TUI Blue hotels, the brand has 93 hotels in 19 countries. TUI Magic Life is an all-inclusive brand, targeting an international audience seeking club holidays with different profiles in beachfront locations. Our hotels operated by third-party hoteliers include a total of 78 hotels belonging to our international concept brands. This brings the total number of hotels belonging to TUI Group to 433. Cruises The Cruises segment consists of the joint venture TUI Cruises, our former subsidiary Hapag-Lloyd Kreuzfahrten, transferred to the joint venture TUI Cruises in July 2020, and Marella Cruises. With their combined fleet of 17 vessels as at the reporting date, the three cruise lines offer different service concepts to serve different target groups. Cruise fleet by ownership structure Owned Leases Total TUI Cruises (Joint Venture) 7 - 7 Marella Cruises 4 1 5 Hapag-Lloyd Cruises (subsidiary 5 - 5 of TUI Cruises) As at 30 September 2020 TUI Cruises is a joint venture in which TUI AG and the US shipping company Royal Caribbean Cruises Ltd. each hold a 50 % stake. With its seven ships, TUI Cruises is top-ranked in the German-speaking premium volume market for cruises. The Berlitz Cruise Guide 2020, the most important international reference guide for cruise ship ratings, rated four ships operated by TUI Cruises among the Top 5 liners in the "Large ships" category. The sale of Hapag-Lloyd Kreuzfahrten, previously a wholly owned TUI Group subsidiary, to the joint venture TUI Cruises was completed in July 2020. The traditional Hapag-Lloyd Cruises brand will remain a leading provider of luxury and expedition cruises in German-speaking markets under the new structure. At the reporting date, the fleet comprised two luxury liners in the 5-star-plus category, Europa and Europa 2, as well as three expedition cruise ships, including Hanseatic inspiration, which joined the fleet in October 2019. A further expedition cruise ship is under construction and is scheduled for delivery in 2021. She will replace the expedition vessel Bremen. With a fleet of five ships, Marella Cruises offers voyages in different segments, including family and city cruises, in the British market. TUI Musement (previously Destination Experiences) The TUI Musement segment delivers local services at our holiday destinations around the world. TUI Musement's business model is based on an open online platform available to suppliers and customers alike. It gives our customers the option to book tours, activities and excursions in the destinations directly and enables our partners and third-party providers to sell offerings. TUI also employs its own staff in numerous holiday destinations. Markets & Airlines With our three regions - Northern, Central and Western - we have well-positioned sales and marketing structures offering our customers attractive holiday experiences. Our sales activities are based on online and offline channels. The travel agencies include Group-owned agencies as well as joint ventures and agencies operated by third parties. In order to offer our customers a wide choice of hotels, our
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