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.