TUI Travel is looking to develop a “sophisticated” management system that it said will help improve efficiency.

The travel giant suffered a huge setback last year when it was forced to write off £117 million due to accounting errors caused by glitches in its holiday booking systems. The company’s CFO, Paul Bowtell, who earned just over £1 million in pay and benefits last year, was also forced to resign as a result.

“A full and detailed audit and business review has been undertaken and we are confident that we have now rectified the weaknesses,” TUI Travel said in its latest annual report for the year ended 30 September 2010.

TUI achieved an 11 percent increase in operating profit to £447 million last year, on revenue of £13.5 billion (down two percent from £13.9 billion in 2009). Its pre-tax profit had also increased four percent to £337 million from £324 million in 2009.

In the annual report, the company said it planned to reduce costs by “building controlled distribution and maximising efficiency through various booking channels.”

It also wants to develop “sophisticated capacity and yield management” systems, in order to “improve efficiency and drive margin improvements.”

With consumers increasingly going online to research and book holidays, TUI also plans to significantly invest in its online business, to the extent that it will promote online as the main distribution channel and improve website functionality in order to help it become so.

TUI aims to “maximise efficiency” and enhance the internet as a research and booking tool for customers, and also to develop its in house-developed social media channel, Cheqqer, which allows users to share holiday and hotel reviews. The social media site is currently available in Spanish and Dutch in beta version.