Speaking during the European travel giant's first quarter results call on Tuesday (10 February), chief executive Sebastian Ebel hailed the group's "very strong" performance in the "four or five-star" market.
However, he admitted an area of weakness for the company is in the "lower end", adding: "To move into the budget segment and to get a decent return is more challenging."
"If we want to be successful we need a different cost structure, less complex product and so on," he said. "We will bring a new product into Europe. It will be in the very near future.
