TUI has just recently confirmed that it will move ahead with expanding into the Russian travel market. This move comes as part of a new $60 million joint venture with billionaire Alexei Mordashov. In this partnership, the German travel giant will establish 200 owned and franchised travel agencies in Russia and the Ukraine over the next three years.

This venture should control about ten percent of the Russian travel market by 2013. TUI will be offering about twenty holiday destinations for Russians to visit. One of the destinations that will be offered will be to Cyprus, which will be a first for the Russian market.

Michael Frenzel, who is the TUI chief executive, said that Russia is one of the top growth markets for the travel industry. Russian consumers are becoming more and more sophisticated and selective. Thus, TUI will be able to give these customers what they want.

TUI expects Russia to become Europe’s fourth largest travel market by 2020. The partners for the plan have each pledged to invest $20 million during 2009. The money was spent on the acquisition of assets from Russian tour operator VKO Group.

Of course, further funds will now be committed to brand promotion and information technology. The partners have confirm a TV advertising campaign is to start within a few weeks. Ten new brochures for the Russian market have already been published. There is also a website going up in Russia and the Ukraine. Of course, the investors did say that if there are other opportunities for more acquisitions, they will surely consider them.