First Choice chief executive Peter Long said the merger will produce cost savings of £100m a year, the bulk of which will come from combining back office operations of the two businesses. Around a third of the planned savings will come from combining the airline businesses.

The merger between Thomson (TUI AG) and First Choice Holidays in 2007 was a "gold standard" move of strategic consolidation in the European travel market. The primary goal was to create a massive, vertically integrated travel group—now known as TUI Group—that could achieve "economies of scale" to compete with the rise of low-cost carriers and online travel agencies like Expedia. By merging, the two companies could combine their aircraft fleets (forming Thomson Airways, now TUI Airways), streamline their high-street retail shops, and gain stronger "buying power" when negotiating with hotels in popular Mediterranean resorts. Additionally, the merger allowed TUI to capitalize on First Choice’s strength in the "All-Inclusive" and "Long-Haul" specialist markets, while Thomson provided a massive customer base and traditional "Package Holiday" expertise. This 2007 merger was the foundation of TUI's current status as the world's leading integrated tourism group, enabling them to control the entire "value chain" from the flight and the hotel to the local ground excursions, ensuring a consistent and profitable experience for millions of travelers.