Tui is positioning First Choice as a value brand and will discount other packages by up to £200 during its turn-of-year campaign.
The First Choice campaign will centre on a “ridiculously good value” message, with TV ads to support it from Boxing Day as part of a “multi-million-pound” marketing effort.
First Choice has also been repositioned to offer all board types, whereas previously it was all-inclusive.
Tui UK and Ireland chief marketing officer Katie McAlister said: “What we can see from consumer trends is that people want a broader offering from the brand – they un-tick the all-inclusive option to see what else there is.
“We see First Choice as an opportunity to position it more by value; it is sorted more by price than Tui. It appeals to a segment of customers who are really looking for a deal.”
The First Choice website now has a Best Value sort order option, a combination of best price, biggest discount and highest Tripadvisor rating, with lead-in prices of “under £299”.
Tui plans for First Choice to sell around a million holidays.
Tui Group has added a million Atol packages and another million flight-onlys since the demise of Thomas Cook.
McAlister dismissed suggestions First Choice was being used as a weapon against the re-launched easyJet Holidays but said its range would be expanded.
“Over time, we see First Choice becoming much more of a marketplace and an online proposition with Tui becoming the tour operating brand,” said McAlister. “We don’t have a firm plan, it’s an evolution.”
Tui’s own message for January will feature three different ads aimed at multigenerational families, conventional family holidays and couples, with “hundreds of thousands of free child places” plus other discounts.
McAlister said there would be a tiered approach to discounting for the main Tui brand, with up to £200 off and a zero deposit scheme for customers who pay by direct debit.
She said Tui was performing “very well”.
“We are happy with where our sales are, the market is strong for us,” she said, adding that Brexit and the election had had little impact.