Daimler CEO to become chairman of German travel giant Tui

Daimler Chief Executive Officer (CEO) Dieter Zetsche will assume an additional role as chairman of the Tui's supervisory board from 2018 onwards, the German travel company revealed on Tuesday.

The automotive industry executive will succeed 74-year-old Klaus Mangold, formally taking over his duties by Oct.1 2018 following a vote at the Tui Annual General Assembly (AGM) on February 13.

Zetsche was a "highly-reputed top manager" who "embodied internationality" and had proven himself in "managing excellent brands", a statement by Mangold read.

Tui's acting chairman further emphasized that Zetsche had been his personal choice as a successor and highlighted the Daimler CEO's experience in international business.

Zetsche has stood at the helm of Daimler for nearly 12 years, leading the mother corporation behind luxury brands such as Mercedes-Benz through a period of commercial success. His contract with Daimler is due to expire at the end of 2019. Daimler stressed that Zetsche's involvement with Tui would have no impact on its management.

Despite growing terror-related fears among tourists, Tui has continued to enjoy strong growth thanks to an increasing focus on package holidays. The travel company is due to publish its earning figures on Wednesday.

(ASIA PACIFIC DAILY)