Annual Report 1999

ANNUAL REPORT 1999

The annual report is also available in French and in German. Le rapport annuel est également disponible en français et en allemand. Der Geschäftsbericht ist auch in französischer und deutscher Sprache erhältlich.

Kuoni Travel Holding Ltd. Neue Hard 7 CH-8010 Zurich Phone: (+41) 1-277 44 44 Fax: (+41) 1-271 52 82 Internet: www.kuoni.com

IMPRESSUM:

Edited and published by: Kuoni Travel Holding Ltd., Corporate Communications

Design/realisation/typesetting: Kuoni Travel Ltd., Brochure Production

Lithography: NC AG, Urdorf

Printing: Benteli Hallwag Druck, Berne

Photography: Blue Planet, Zurich Incolor AG, Zurich Prisma, Zurich The Image Bank, Zurich Kuoni Bildarchiv, Zurich Robert Hansen, Baden CONTENTS

Page Kuoni at a glance 2 Organisation 4

Report of the Chairman and the President: 7 Well equipped for the future

Group: 13 Excellent operating performance

SBU Switzerland: Fit for the new millennium 21 SBU United Kingdom and North America: A defining year 28 SBU Europe: Successful restructuring 35 SBU Business Travel: A promising launch 42 SBU Incoming and Asia: Major improvements 47 Information Technology: Exploiting synergies 51

The Kuoni network in Europe, America, Asia and Switzerland 54 Our market: Top ten keep on growing 61 Our competencies: Leisure Travel, Business Travel, Incoming 65 Pioneer in the Indian Ocean 68 Our staff: Young and enterprising 70 Working in New York 72 Our responsibilities: Corporate Governance – Creating value for all 74 Ecology – Think global, act local 76 Health & Safety – Committed to customer safety 80 Society – At home in SOS Children’s Village 82

Executive and Corporate Bodies 86

Kuoni Encyclopaedia 96

Addresses 100 2 THE MOST IMPORTANT FIGURES 3

Kuoni at one glance

Kuoni Travel Holding Ltd. Kuoni Group 1999 1998 (consolidated as at 31 December) 1999 1998 CHF CHF CHF m CHF m Investment in equity holdings 251,158,551 160,334,104 Turnover 3,509 2,896

By Strategic Business Unit: Net profit for the year 112,180,966 105,829,711 Switzerland 911 844 Information for investors UK and North America 918 599 Europe 1,067 903 Consolidated cash flow Business Travel 162 158 per registered share A 97.80 81.70 Incoming and Asia 451 392 per registered share B 489.00 408.50 By Activities: Group profit before exceptional items Leisure Travel 2,987 2,435 per registered share A 73.30 64.50 Business Travel 162 158 per registered share B 366.70 322.60 Incoming 360 303 Consolidated shareholders’ equity per registered share A 414.80 323.90 Earnings before interest, taxes and 152.8 118.4 per registered share B 2,074.20 1,619.50 amortisation of goodwill (EBITA)

Dividend By Strategic Business Unit: per registered share A 22.001) 22.00 Switzerland 37.5 31.0 per registered share B 110.001) 110.00 UK and North America 92.2 72.6 Europe 17.1 16.8 Stock market prices Business Travel 15.5 9.6 registered share B high 6,790 8,890 Incoming and Asia 5.5 2.1 low 5,050 3,680 Group –15.0 –13.7 at year end 6,610 5,450

Group profit before exceptional items 117.3 103.2 Stock market capitalisation 31 Dec 2,115 m 1,744 m Group profit 90.5 103.2 Annual trading volume 1,330 m 1,331 m Cash flow 156.5 130.7 1) Proposal of the Board of Directors to Investment in tangible and intangible the General Meeting of Shareholders assets 168.9 111.9 Balance sheet total 1,770 1,363 Average number of personnel 6,528 6,008 4 ORGANISATION 5

Chairman of the Board of Directors Daniel Affolter Internal auditors President of the Executive Board and CEO Hans Lerch** Corporate Corporate Assistant Development Development to CEO

SBU* SBU* SBU* SBU* SBU* Finance Information Switzerland United Kingdom Europe Business Incoming Kuoni Group Technology & North America Travel & Asia (IT) Thomas Stirnimann** Peter Diethelm** Marcel Herter** Reto Bacher** Ibrahim Atallah*** Max E. Katz** Konrad Iten***

Switzerland United Kingdom France Germany Switzerland Kuoni Reisen AG Kuoni Travel Ltd. Voyages Kuoni SA Euro Lloyd Reise- Kuoni Reisen AG Edelweiss Air AG House of Specialists Ltd.: büro GmbH & Co. Incoming Services KG (BTI Euro Lloyd) Manta Reisen AG Voyages Jules Verne Denmark Greece Privat Safaris Airwaves Alletiders Rejser A/S Austria Reisebüro AG Hellenic Tours S.A. Reisebüro Kuoni PRS AG Caribbean Italy Hellenic Island Ges.m.b.H. Services Ltd. Railtour Suisse SA Kuoni Caribbean Kuoni Gastaldi Tours (BTI Austria) Hotels Ltd. Reisebüro Popularis S.p.A. Kenya Rotunda Tours AG Switzerland North America Netherlands Private Safaris Kuoni Reisen AG (East Africa) Ltd. Intrav, Inc. Kuoni Travel Nederland (BTI Kuoni Clipper Cruise Line Inc. B.V. (Special Traffic) Switzerland) Asia Austria Hungary P&O Travel Ltd., Hong Kong N-U-R Neckermann Kuoni Utazási Reisen AG Iroda Kft. P&O Garden City (BTI Hungary) Travel Pte. Ltd., Reisebüro Kuoni Singapore Ges.m.b.H. P&O Regale Travel Restplatzbörse Co. Ltd., Thailand Ges.m.b.H. Cosmos Ges.m.b.H India Allround Travel Inter- national Ges.m.b.H. Kuoni Travel (India) Ltd. SITA World Travel Spain (India) Ltd. *) Strategic Business Unit Viajes Kuoni S.A. **) Member of the Executive Board Hungary ***) Member of the expanded Executive Board N-U-R Neckermann Utazás Kft. March 2000 REPORT OF THE CHAIRMAN AND THE PRESIDENT 7

Well equipped for the future

For Kuoni, 1999 was both a very successful and turbulent year. Both turnover and operating profit rose to new record levels. With such success to its credit, the Kuoni Group need not fear a comparison with the biggest in the European tourism industry. On the contrary: Kuoni’s performance has elevated the Groupto the top of the European tourism league (see page 16). Following Kuoni’s failed attempt to merge with the UK tour operator, First Choice, the Executive Board was reorganised and expanded in July 1999. Under Hans Lerch, the new President of the Executive Board, Thomas Stirnimann took over the Strategic Business Unit (SBU) Switzerland. The Executive Board was expanded to include Konrad Iten as Chief Information Officer and Ibrahim Atallah as Senior Vice-President of the SBU Incoming and Asia.

Daniel Affolter (left) Chairman of the Board of Directors

Hans Lerch (right) President of the Executive Board and Chief Executive Officer 8 REPORT OF THE CHAIRMAN AND THE PRESIDENT 9

An international management culture Growth as an end in itself? There is a lot more to being a global company than having We are convinced that there is no critical size for a multinatio- international operations. We are convinced that the ability to success- nal. However, we do believe that a critical size exists in specific fully manage a company on a global basis and to integrate new markets and countries. For example, some 200,000 charter passengers subsidiaries into a cohesive in Denmark represents a good annual figure, but a similar number whole is one of the really major would be far too small to survive in the German market. challenges of the future. “We are proud Our Board of Directors and Executive Board therefore follow Kuoni is well placed in this to have lived an a policy that seeks to strengthen the position of the various group respect. As long ago as the 1930s, companies via acquisitions so as to attain a critical mass in each mar- our company recognized that international ket and create a healthy basis for future organic growth. The addi- the Swiss market was too small culture for much tions to the Group in recent months should be seen in this context. and opened its first foreign • In March 2000, Kuoni successfully acquired Sita World outlets. Kuoni’s overseas sales of our history.” Travel in New Delhi, making activities in the Incoming segment our company India’s number one were expanded almost 40 years ago when we opened a branch in Tokyo. in all three main operating areas: Today Kuoni has offices in 27 countries. And this number Outbound, Business Travel and is more than just a statistic: It is also symbolic of the Kuoni culture. Incoming Services. The successful management of companies located outside one’s home • Following the announce- market requires an international management culture plus the re- ment in December 1999 that we cognition that a decentralized leadership philoso- were taking an equity holding of phy is important for long-term success. 45% in the tour operator Thanks to its history and the many years of Apollo, which operates in Sweden, Denmark and Norway, plus the experience of our new management acquisition of the activities of the up-market Danish tour operator team in foreign markets, Kuoni is well Dane Tours and the travel agencies of Kisbye Rejser, Kuoni has assu- equipped to take on future challenges. med the number 3 position in Scandinavia’s tourist industry. This And we are proud to have lived an interna- forms a good basis, from which further organic growth is possible. tional culture for much of our history. • In September 1999, we acquired luxury tour operator Intrav of St. Louis, Missouri/USA. This gives us an entry into the growing US market where we intend introducing the successful product range offered by Kuoni United Kingdom. Two further moves belong to this same strategic approach: in summer 1999, we agreed to take a 49% equity holding in the TUI subsidiary TUI Suisse in Switzerland; we also decided to expand 10 REPORT OF THE CHAIRMAN AND THE PRESIDENT 11

the fleet of Kuoni’s own Swiss charter airline Edelweiss Air with the A word of thanks addition of an Airbus A330 in November 2000. Once again in 1999, our staff members made an enormous contribution to our At the leading edge of e-commerce continuing success story. Let us take this With the purchase of a 12.5% stake in the UK’s “TV Travel opportunity to say a big thankyou. Without Shop”, Kuoni has demonstrated its conviction that interactive televi- the full commitment of all our employees sion will play an important role throughout the organisation, we would not be “Interactive in the changes that are reshaping the successful Group we are today. distribution. It underlines the fact Our shareholders also deserve a special word of thanks for television will play that Kuoni is taking an active and their faith in our company during the turbulent months of last spring. an important role leading part in this development. Our Board of Directors and Executive Board are fully aware In a further move in the of their responsibilities and will continue to devote their efforts to in the ongoing same direction, Kuoni has signed building on the success of the Kuoni Group. The new Executive Board a declaration of intent to set has many years of collective experience in the international tourism development up a joint e-commerce venture business. They form an excellent team that is well equipped to ride the of the future sales with India’s biggest company, ongoing wave of global consolidation in the industry and to success- TATA Industries. The plan is to fully rise to the challenge of the paradigm change that e-commerce is landscape.” develop, together with TATA engendering in the tourism industry as well. Consultancy Services, a vertical travel portal. Some time ago, Kuoni also set up its own project team which has been granted a generous budget to develop new e-commerce sales avenues.

Daniel Affolter Hans Lerch Chairman of the Board President of the of Directors Executive Board and CEO GROUP 13

Excellent operating performance

The 1999 financial year was influenced by two main factors: the merger project with First Choice and the Kuoni Group’s outstanding operating performance. Group turnover rose by 21.2%, from CHF 2.9 billion to CHF 3.5 billion. Operating profit (EBITA) was up by an impressive 29%, to a new record of CHF 152.8 million Max E. Katz Executive Vice-President (1998: CHF 118.4 million). The Group’s Chief Financial Officer ordinary profit increased by 13.7% to CHF 117.3 million (1998: CHF 103.2 million). After deduction of extraordinary costs for the merger project with First Choice, the figure is at CHF 90.5 million (1998: 103.2 million; –12.3%). Ordinary profit per registered share B was CHF 367 – a new record high. The Board of Directors proposes to the General Meeting of Shareholders that the dividend per registered share B remain unchanged, at CHF 110.

The figures for the 1999 financial year have been compiled using the “European method” of sales calculation. This method is used by the major European tour operators, and the Kuoni Group first introduced it for its 1999 semi-annual report. Under the Euro- pean method the Group turnover contains only commissions from the sale of leisure and business travel services and tour operating turnover. The definitions of sales in the tour operating area have remained unchanged, however. 14 GROUP 15

Percentage Share of Percentage shares of turn- Changes in Group Turnover Group Sales 1999 1995–99 over by activities show that the SBU Europe: CHF 1,067 million SBU Switzerland: CHF 911 million main emphasis of our operations CHF b 4 clearly lies in our core business SBU Business Travel: CHF 162 million SBU United Kingdom and 3 North America: CHF 918 million SBU Incoming and Asia: of leisure travel. This sector grew CHF 451 million to 85.1% (+1% point) driven by 2 acquisition activity. Despite strong SBU Europe: CHF 17.1 million 1 Percentage Share of organic growth, Incoming’s Group EBITA 1999 per SBU SBU Business Travel: CHF 15.5 million share declined slightly by 0.1% 0 95 96 97 98 99 SBU Switzerland: CHF 37.5 million SBU Incoming and Asia: to 10.3%. Business travel now CHF 5.5 million makes up 4.6% (–0.9% point) SBU United Kingdom and of the total turnover. Changes in EBITA and Group Profit North America: CHF 92.2 million 1995–99 Operating profit (EBITA) CHF m rose by 29.1% from CHF 118.4 150 An analysis of turnover by business unit gives the following results: million to CHF 152.8 million – 125 • Europe remains the Strategic Business Unit (SBU) with the again, an above-average increase. 100 highest turnover: CHF 1,067 million (1998: CHF 903 million; All units improved last year and 75 +18.2%). The SBU’s growth through acquisitions was +11.9%, while thus contributed to this satisfying 50 internal sales growth was +7.1%. result. At 16%, internal EBITA 25 0 • The SBU United Kingdom and North America saw strong growth was higher than the in- 95 96 97 98 99 acquisition-driven growth (+37.2%), and also defied the market trend crease in turnover, which means EBITA Profit by posting above-average 14.1% internal growth. The positive cur- that margins have improved. rency effect accounted for only 1.9% of the impressive total increase While the currency effect was a of 53.2% to CHF 918 million (1998: CHF 599 million). negligible 0.9%, acquisitions Changes in Group Profit 1995–1999 • The SBU Switzerland (1999: CHF 911 million; 1998: and divestments led to a positive per Registered Share B CHF 844 million; +7.9%) increased internal sales by 5.4%, also sur- net increase of 12.2%. CHF passing market growth. Although the market envi- 400 • The SBU Incoming and Asia benefited from the recovery in ronment in Switzerland has 300 Asia, increasing its turnover again by 15.0% to CHF 451 million been highly complex, the develop- (1998: CHF 392 million). 11.7% growth was recorded internally. ment of financial income was 200

• After a slow start, the SBU Business Travel also ended the extremely pleasing. Another re- 100 year under review with the turnover up CHF 4 million to CHF 162 cord figure of CHF 47.4 million 0 million (1998: CHF 158 million; +2.5%). 0.2% of this was internal. (1998: CHF 43.1 million; +10.0%) 95 96 97 98 99 16 GROUP 17

was achieved, making a substan- Ordinary Group profit per registered share B reached a new tial contribution to the Group’s record of CHF 367, continuing the unbroken record of success since results. With the purchase of the 1995. Because this figure falls to CHF 283 per registered share B new US subsidiary Intrav (then once the extraordinary costs for the merger project with First Choice listed on the Nasdaq), the finan- are applied, Kuoni’s flexible dividend policy (which involves dis- cing required for acquisitions tributing between 30 and 35% of Group profit to shareholders each reached a new peak. The securities time) would mean a reduction in the dividend. However, since the holdings kept for this purpose costs involved are one-off items which do not influence the Group’s were sold at a profit by choosing longer-term performance, the Board of Directors is proposing to a time when market conditions the General Meeting of Shareholders on 16 May 2000 that the divi- were favourable. As a result, unrealised capital gains were slightly dend per registered share B should remain at CHF 110. reduced to CHF 40.6 million (1998: CHF 46.0 million; –11.7%). Investment in fixed assets rose sharply in the year under review, The figure for earnings before taxes and amortisation of to CHF 168.9 million (1998: CHF 111.9 million; +50.9%). This goodwill, used for international comparison purposes, came to increase is primarily due to the acquisition of the three new Airbus CHF 200.2 million (1998: 161.5 million; +24.0%) – the first time in A320-200 which were delivered to our airline Edelweiss Air in the Kuoni’s history that it has exceeded the CHF 200 million mark. course of 1999. Further significant investments were made in the IT Expressed as a percentage of the turnover, Kuoni tops the earnings sector and we also purchased and renovated property. The invest- list, ahead of its ten major European competitors, with a figure ments were practically fully paid for from the current cash flow of of 5.7%. CHF 156.5 million (1998: CHF 130.7 million; +19.7%). Ordinary consolidated profit too reached a new record figure of CHF 117.3 million, up 13.7% on the previous year (1998: CHF 103.2 million). After deduction of extraordinary costs of CHF 26.8 million for the merger project with First Choice, Group profit came in at CHF 90.5 million (1998: CHF 103.2 million; –12.3%). It is also worth noting in this context that the Kuoni Group’s dynamic acquisition strategy is causing a steady rise in the figure for goodwill amortisation. Internal growth in Group profit was a gratifying 12.6%, with the positive currency effect contributing only 0.8%. As expected, the tax rate rose again in 1999, from 23.7% to 26.3%. This trend is likely to continue in the coming years, as losses brought forward are being reduced on an ongoing basis and companies in countries with higher rates of taxation are being acquired. 18 GROUP 19

A promising start to the year 2000 It is difficult to judge well in On 12 January 2000, the Kuoni Group launched the first bond advance how demand is going to issue in the company’s history. The CHF 205 million 2000–2005 develop in the travel sector. convertible bond with a 1% coupon entitles investors to subscribe for Nevertheless, the first one Kuoni share at a price of CHF 8,905 during its term. This attrac- indications in the tive bond has provided us with the necessary funds for further acquisi- current financial year tion projects on favourable terms, and has made constructive use of are encouraging. In the company’s existing 23,000 treasury shares. Switzerland, the early Our growth strategy too is being successfully continued. The appearance of the most important Swiss brochures and the intro- purchase of an incoming agency in Holland on 7 January 2000 duction of a new price structure that offers incentives to book early has secured Kuoni a leading position in the important Dutch incoming have had very positive effects on sales. In the United Kingdom, market. On 18 February 2000, the Group bought 45% of the dy- bookings for 2000 have made an excellent start, against the market namic Scandinavian travel firm Apollo Resor, which is based in Stock- trend. Our companies in France and Italy too have ended the first holm, and at the same time secured an option to purchase a further months above budget. 30% as of July 2001. On 20 March 2000, Kuoni acquired the busi- Once again it appears that with our broad spectrum of activi- ness of the small but popular Danish tour operator Dane Tours ties over a wide range of different regions, we can face the future and the travel agencies of Kisbye Rejser. Dane Tours has a leading with optimism. position in the market for scheduled flight holiday arrangements – a concept which Kuoni successfully offers worldwide. On 13 March 2000 the Kuoni Group exercised its option to take up a 49% stake in the Preussag subsidiary TUI Suisse. TUI Suisse Max E. Katz is the Number 3 in the Swiss market, Executive Vice-President and has been cooperating with Kuoni Chief Financial Officer Switzerland in the area of charter flights and hotels since June 1999. Finally, on 24 March 2000 Kuoni signed the contract for the full acquisition of the successful Indian travel company SITA World Travel (India) Ltd. The merger of Sita and Kuoni India, the leading tour operator on the subcontinent, will create by far the largest tour company in the fast-growing Indian tourism market. SBU SWITZERLAND 21

Fit for the new millennium

The Strategic Business Unit (SBU) Switzer- land reported very good results for 1999 despite the transfer of the Business Travel department to a separate unit with effect from 1 January 1999. Turnover rose by 7.9% to CHF 911 million (1998: CHF 844 million) despite the previous year’s high comparison base. EBITA also forged ahead, Thomas Stirnimann Executive Vice-President regardless of the difficult market conditions, SBU Switzerland recording a 21% gain to hit a new record of CHF 37.5 million (1998: CHF 31 million). This impressive result is mainly due to Kuoni Reisen AG’s market leadership in the beach holiday segment; a flexible approach to the composition of its products has allowed it to react well to the changing needs of its customers. The recovery of the holiday destination Egypt also had a positive impact on sales. In retailing, the separation of Leisure and Business Travel is now complete, allowing efficiency improvements in each field. The subsidiaries – especially Edel- weiss Air and Railtour Suisse – are also making gratifying progress. 22 SBU SWITZERLAND 23

Percentage Share of CHF 597 million correspond to the adjusted 1998 figure. The new non-consolidated Turnover 1999 Reisebüro Popularis: 6.6% SBU Switzerland structure together with rigorous cost management helped boost Edelweiss Air: 4.5% income. Sales of our own brand products hit a new peak, with Re- Kuoni Travel Railtour Suisse: 4.5% Tour Operating: 43.5% PRS: 2.7% tailing making a major contribution to Tour Operating’s record Manta Reisen: 2.0% result. Following Martin Wittwer’s appointment to the post of CEO Privat Safaris: 1.1% Rotunda Tours: 0.7% at our strategic partner TUI Suisse, we appointed Daniel Reinhart to head the department with effect from 1 July 1999. Kuoni Travel Kuoni still leads the Swiss market with its Internet offering Retailing: 34.4% (www.kuoni.ch). This allows the online booking of flights via the Ticket Shop database which contains the flights of all operators and last-minute flights. The Internet is still being used primarily as an information source and the proportion of Internet sales to total Kuoni Reisen AG sales remains low. However, the upward trend is very steep, albeit Tour Operating: Market leadership extended at a low level. Tour Operating was able to extend its leading position in the Swiss market with non-consolidated gross sales of CHF 755 million Edelweiss Air AG: (1998: CHF 700 million; +7.9%). The fastest-growing holiday des- Switzerland’s most modern fleet is flying high tinations were Egypt, Thailand, Australia, Tunisia and Spain. Margins In its fourth business year, the holiday airline has once again improved further despite last year’s major advance. This represents exceeded its targets, not just in terms of quantitative, but also quali- a particularly solid achievement given that the battle for market share tative performance. The readers of Germany’s travel magazine was hard fought in 1999, a year of excess capacities. “Globo” voted Edelweiss Air the number 2 leisure airline in Europe Helvetic Tours, our budget brand, was the major contributor at the beginning of 2000. Edelweiss Air not only left its Swiss rivals to our successful capacity management. It presented itself to the public with a particularly original and bold advertising campaign. The company is gaining more and more popularity and recognition in SBU Switzerland SBU Switzerland Changes in Turnover Changes in EBITA the beach holiday market. CHF m CHF m

1000 50 Kuoni Reisen AG 40 Retailing: Own brand sales hit a record 750 30 The wisdom of the successful move to separate the retailing 500 20 activities of Leisure and Business Travel was confirmed in the repor- 250 10 ting year. The resulting shift in sales once again render compari- 0 0 sons with previous years difficult. Non-consolidated gross sales of 95 96 97 98 99 95 96 97 98 99 24 SBU SWITZERLAND 25

Crossair and Balair behind, it also beat the European majors such as Manta Reisen has only been part of the Business Unit Switzer- Condor, Hapag Lloyd and LTU. land since November 1998, which means a comparison with the The year was also dominated by the replacement of the fleet of previous year is not meaningful. Non-consolidated gross sales for 1999 three MD 83 with three brand new, environment-friendly, comfor- amounted to CHF 34 million. Kuoni and Manta’s combined market table and quiet Airbus A320. Edelweiss Air now owns Switzerland’s share of the Maldives holiday market is over 60%. youngest and most modern fleet of aircraft. Non-consolidated gross sales more or less remained stable at CHF 79 million despite the Privat Safaris Reisebüro AG: fleet replacement (1998: CHF 82 million; –3.7%). Edelweiss Air Land in sight is a major Kuoni success story. The expansion of the fleet by an Air- After several difficult years, the demand for Kenya holidays has finally picked up once again and is well on the road to recovery. Given its quality reputation as an East Africa specialist, Privat Safaris has benefited from this resurgence of interest to record much improved 1999 earnings. Prospects for next winter indicate a further improvement, which will also provide a boost to Private Safaris (East Africa) Ltd., the Incoming subsidiary domiciled in and operating from Nairobi. Non-consolidated gross sales at the Swiss subsidiary Privat Safaris Reisebüro AG amounted to CHF 20 million in the year under review (1998: CHF 18 million; +11.1%).

Railtour Suisse SA: On the fast track bus A 330-200, which will allow Kuoni customers to fly long-haul For the twelfth time in a row, Railtour Suisse SA, in which benefiting from Edelweiss’s comfort and punctuality from November the Kuoni Group now holds an 87% stake, reported record results. 2000, should give a fresh boost to the company. The trend towards taking short trips has provided a further boost to this Kuoni subsidiary, a rail specialist. Its 1999 non-consolidated Manta Reisen AG: New products bring success Despite the coral reef problem (now more or less over) at one of Manta Reisen’s most important destinations, the Maldives, the specialist tour operator enjoyed a very successful year. Diving holidays in particular, as well as the new products Honeymoon Holidays and India, were able to offset the temporary decline in bookings to the Maldives, contributing to the positive overall trend. 26 SBU SWITZERLAND 27

gross sales rose by 9.9% to CHF 78 million (1998: CHF 71 million). PRS AG is now well equipped Ongoing process improvement has also further improved margins in to reinforce its position as the spite of low sales per individual booking. third pillar in Kuoni’s Retailing operations. Reisebüro Popularis: Back on the growth path Rotunda Tours AG: After a phase of stabilising last year, the continued expansion of A slight drop in demand Helvetic Tours branch offices in 1999 has led to a fresh jump in Rotunda Tours, a sub- sales at Reisebüro Popularis. Sales at its tour operating division Coop sidiary specialising in southern Africa, has been unable to escape the extra Reisen, a direct sales specialist, fell slightly short of last year’s overall slowdown in demand for holidays to southern Africa, figure, the more risky beach holiday products (i.e. involving charter despite its undisputed position as market leader. Non-consolidated flights) having been eliminated from its range. Non-consolidated gross gross sales slipped 7.1%, in line with the general market trend, sales improved 3.6% from CHF 110 million to CHF 114 million. from CHF 14 million (1998) to CHF 13 million (1999). Income held up aided by a policy of consistent cost management and successful PRS AG: negotiations to improve existing local agreements. Equipped for the future The Rewi Reisen, L&M Reisen and Tevy Reisen travel agents, which operate in the Zurich area, combined forces in 1999 to form a dynamic group under the name of PRS AG, which targets the local market. A comprehensive pro- Thomas Stirnimann gramme of upgrading sales outlets to im- Executive Vice-President SBU Switzerland prove customer comfort in various locations as well as the restructuring have left their mark on the sales figures. Non-consolidated gross sales reached CHF 47 million (1998: CHF 54 million; –13%). 28 SBU UNITED KINGDOM AND NORTH AMERICA 29

Our tour operation core business had a brilliant start to the A defining year year as Egypt and Kenya, the two problem destinations of 1998, showed a healthy recovery. Egypt was a real success story in 1999 and 1999 was a defining year for our Strategic moved from No. 19 in our league table of destinations to No. 7 Business Unit (SBU). The acquisition in one short year, whilst in Kenya we took pro-active action, gaining market share and establishing an excellent base for further growth of US tour operator Intrav in September in 2000. The Far East continued its strong performance with Thai- 1999 represented a real milestone in the land, Singapore and Bali showing growth in excess of 30%, SBU’s history and resulted in its enlarge- while the popularity of China (including Hong ment to SBU United Kingdom (UK) and Kong) declined. Strategically, 1999 was a very important North America. Thanks to acquisitions year for Kuoni UK. During the summer months, and internal growth, turnover grew from Peter Diethelm Executive Vice-President Kuoni was constantly in the limelight of the UK SBU United Kingdom & CHF 599 million to CHF 918 million North America media as a result of merger plans with First Choice. (+53.2%). Combined with another excellent performance of our This high profile exposure did not have any negative impact despite the fact that the merger did not take core UK tour operation, the new SBU achieved an EBITA of place. We have now focused strongly on our core competence as a spe- CHF 92.2 million (+27%) to end the millennium with an outstan- cialist for flexible holiday arrangements to far-away places, offering ding result. tailormade holidays at package tour prices. Despite the consolidation of the results from direct sales tour operator Voyages Jules Verne (acquired United Kingdom: December 1998), a lower margin business, we still achieved an overall Market share increased EBITA margin of 10%. This is well over double the industry average due As ever, the enormous range of Kuoni worldwide products enabled Kuoni UK to balance the changing popularity of various destinations, and not even the well publicised millennium flop would stop SBU United Kingdom SBU United Kingdom and and North America North America our UK operation from achieving a record turnover of CHF 799 Changes in Turnover Changes in EBITA

million (1998: CHF 588 CHF m CHF m million; +35.9%) and 1000 100 a new best ever EBITA 800 80 result. 600 60 400 40

200 20

0 0 95 96 97 98 99 95 96 97 98 99 30 SBU UNITED KINGDOM AND NORTH AMERICA 31

to our product differentiation and niche market The current distribution of our products via travel agents position in the UK leisure market. (63%) and direct to consumers via the Internet, telephone sales and There has been much talk about the so- the call centre (37%) puts us in an excellent position to make use called «directional selling» by the retail divisions of new distribution opportunities which are opening up. Indeed, our of the vertically integrated travel companies shareholding of 12.5% in the TV Travelshop, acquired in January like Airtours, Thomson and Thomas Cook. The 2000, confirms our strategy of continuously examining all distribu- policy introduced in 1998 reduced the number tion options available, whether traditional, new or interactive. of tour operators sold in each retail shop. How- ever, as Kuoni has a strong brand with a clear Maintaining IBU business strategy product differentiation compared with the in- The Independent Business Units (IBUs) continue to focus on house products of the above mentioned travel further expansion in their respective niche markets of Sports, companies, this business strategy actually in- Incentives and Student Travel as well as Trade Fairs, travel to the Far creased, rather than reduced our market share East and direct sales (Voyages Jules Verne and The Travel Collection). for long-haul holidays. They develop and distribute the products according to the very This report on the United Kingdom would not be complete requirements of their niche business while at the same time benefitting without mentioning our annual awards. 1999 was indeed a vintage from the financial strength, back office facilities and general infra- year. We won the coveted Golden Globe award – voted by travel structure of the Kuoni UK Group. agents – for «Britain’s Best Longhaul Tour Operator» for the 18th consecutive year. The readers of the «Daily Telegraph» voted North America: Kuoni «Britain’s Best Tour Operator» and in addition, we received A great potential for further development numerous accolades for best operator to selected destinations The acquisition of Intrav in September 1999 represented such as Malaysia, Sri Lanka, Thailand, the Maldives and Kenya. a real milestone in the history of the SBU. We analysed the American market in depth and came to the conclusion that there was a great Opening new distribution channels potential for further development. The acquisition of Intrav, a very In 1999, we also introduced Britain’s first interactive holiday profitable specialist tour web site, www.kuoni.co.uk, where holidays can be booked on the operator (consolidated in Internet without any manual intervention. The site has already won the group figures for six awards for its user friendliness and functionality and during the months effective July 1999) current year we shall develop features which are more advanced than provides Kuoni with an we thought possible only a year ago. Call centre efficiency further opportunity to further de- improved and with the introduction of our VIP helpline for regular velop the top end of the Kuoni clients, we have enhanced the level of service well beyond small ship and private jet what is currently available in the industry. business, whilst at the same 32 SBU UNITED KINGDOM AND NORTH AMERICA 33

time allowing us to roll out the successful Kuoni UK concept of tailor- promotion to these key positions within the Kuoni Group. I myself made holidays at package tour prices. will continue to assume the responsibility as Executive As in the UK, we expect our US operation to maintain EBITA Chairman of Kuoni UK and North margins well above industry norms and to concentrate on niche America and remain a member markets rather than high-volume mass market tour operating activi- of the Executive Board of the ties. During the current year we intend to establish a firm and Kuoni Group. cost-efficient platform for growth, to make investments into new At the time of writing, distribution channels (including the Internet) and to prepare the the UK travel industry is company for the launch of receiving quite some bad press. new products in 2001. Very high discounts offered for summer 2000 sales, increased first Our hotels in the quarter losses and the slow growth of the total market had a very Caribbean – Hawksbill in negative impact on the share prices of the UK-quoted vertically inte- Antigua and Discovery grated companies. No doubt it is too early to draw any conclusions, Bay in Barbados – are also as much will depend on the balance of supply and demand for consolidated in the SBU the remainder of the year. As to the SBU United Kingdom and North figures. They do not have a America, there is no need for being concerned. Bookings are up on material impact as much the previous year, costs are under control and profit margins are over- of the business comes from all on target. We shall make additional investments in new techno- the Kuoni group compa- logy solutions but, force majeure notwithstanding, we expect to kick nies and turnover is elimina- off the new millennium with another good year. ted on consolidation. It now remains for me to thank all the business managers and their teams for their great enthusiasm and continuous support SBU Outlook: which produced the best-ever results in the history of our SBU. The future looks bright In October 1999, we re-organised the top management of the newly enlarged SBU: Sue Biggs, previously Deputy Managing Direc- tor UK and with Kuoni for 18 years, was promoted to Managing Director of Kuoni’s UK tour operations. Ian Coghlan, who has been Peter Diethelm with Kuoni for 14 years, became CEO of the newly acquired Executive Vice-President Intrav. Our strong business philosophy of «quality before quantity SBU United Kingdom & North America and profit before market share» will therefore live on and the day-to-day management rests indeed in very capable hands – my sincere congratulations to Sue and Ian for their well earned SBU EUROPE 35

Successful restructuring

The Strategic Business Unit (SBU) was restructured in the course of the year under review. It has been renamed SBU Europe (formerly: International), and the subsidiaries in Asia have been transferred to SBU Incoming and Asia. Turnover of the now smaller SBU Europe rose from

CHF 903 million to CHF 1,067 million Marcel Herter Executive Vice-President (+18.2%). EBITA increased by SBU Europe CHF 0.3 million to CHF 17.1 million (1998: CHF 16.8 million; +1.8%). With the exception of Austria and Denmark, the companies belonging to SBU Europe operate in the long-haul segment and were more or less unaffected by the problems in Kosovo and Turkey at the beginning of 1999. They recorded a gratifying volume of bookings in the first three quarters of the year. Earnings slowed in a sluggish fourth quarter when the millennium changeover led to a marked decline in travel activities in all markets. 36 SBU EUROPE 37

Austria: SBU Europa SBU Europe Changes in Turnover Changes in EBITA Above-average results In spite of the rather weak market, which was characterised by CHF m CHF m 1000 20 a surge in domestic tourism, the ongoing concentration process 15 in the industry and a fierce battle for market share, our companies in 750

Austria once again posted results that were above-average. 10 500 5 Tour Operating: A marked improvement 250 N-U-R Neckermann Reisen AG and Kuoni Reisenveranstal- 0 tungs AG, in which Kuoni holds a 51% majority stake, posted sharp 0 –5 95 96 97 98 99 95 96 97 98 99 improvements in both turnover and income. With turnover jumping by 13.1% to CHF 294 million (1998: CHF 260 million), N-U-R Neckermann further boosted its market share. Results were helped by N-U-R Neckermann also operates in some of the new markets high flight occupancies and a targeted price and product policy. bordering Austria. A 25% increase in Hungarians holidaying with Greece was the number one holiday destination, with over 16% addi- N-U-R Neckermann was an especially good result. The start of operational visitors, followed by Spain. tions in Slovakia was more difficult, where targets have not been met thus far. N-U-R Neckermann has also been operational in Slove- nia since May 1999. Kuoni Reisen Veranstaltungs AG made further progress in 1999 improving turnover by 12.8% to CHF 44 million (1998: CHF 39 million). The most popular destination, accounting for around 23% of all passengers, was again the USA, followed closely by beach holidays and city breaks in Europe. Asia specialist Allround Travel International (ATI) did not Percentage Share of Turnover 1999 match previous-year turnover of CHF 12 million, which slipped by SBU Europe Italy: 22.2% –25% to CHF 9 million. Nonetheless, earnings matched the previous year’s thanks to improved margins. Austria: 34.2%

Retailing: A quantum leap

France: 21.0% Reisebüro Kuoni Ges.m.b.H, our retailing organisation in Austria, developed especially well in 1999, performing a veritable Spain: 2.8% quantum leap. In spite of a subdued market characterised by a conti- Netherlands: 5.5% Denmark: 14.3% nuing fall in airline commissions, retailing posted a sharp increase 38 SBU EUROPE 39

in its sales, income and own brand market share. Of the jump in turn- sition by 25%, with a turnover of CHF 153 million in 1999. The over of around 40% to CHF 14 million (1998: CHF 10 million), brand name “Alletiders”, which was launched in autumn 1998 and 25% derives from acquisitions, with the other 5% due to organic has a meaning akin to “super”, has already achieved significant growth resulting from the consistent implementation of quality and brand recognition in the market thanks to major investments in the process standards. year under review and enjoys a Including Restplatzbörse and Reisebüro Cosmos Ges.m.b.H., top-class reputation. which was acquired in the year under review, Kuoni now has its own Annual results would have distribution network of 35 tourism sales outlets, plus a further 28 been even better had Christmas (Kuoni Travel Partner) operated by franchisees. The joint venture with and New Year business in Den- Wüstenroth in the area of alternative distribution has already excee- mark not been even more sluggish ded targets in its first year. than it was in the rest of Europe. Restplatzbörse Ges.m.b.H., specialised in the sale of last-minute A number of charter seats had to seat capacities, increased turnover by 21.4% (1999: CHF 3.4 million; be sold at last-minute prices. With management and staff continuing to 1998: CHF 2.8 million), which was again far better than the overall put in an excellent performance and with the company extremely well market performance and underscored its market leadership in this area. positioned within the competitive landscape, we are very confident for the future. Denmark: Down the fast lane with “Super” France: Alletiders Rejser A/S, acquired by Kuoni in October 1998, Sustained upward trend exceeded the sales target set for the company at the time of the acqui- Kuoni France again achieved an above-average performance in 1999. In the face of severe competitive pressures in the market, it not only succeeded in increasing turnover by 9.3% to CHF 224 million (1998: CHF 205 million), but once again recorded faster growth in profit than turnover. Tour Operations performed particularly well, with our traditional holidays as well as our destination specialist Scanditours enjoying increasing popularity. In addition, the streamlining of structures has boosted productivity still further. The retailing network in the year under review was augmented by a branch in Toulouse, but nonetheless underperformed last year’s result, while alternative sales channels developed at an above-average rate. Sales in supermarkets enjoyed the most rapid increase. Our customers have also been able to book travel arrangements with our French subsidiary interactively and directly via the Internet since November 1999. 40 SBU EUROPE 41

Italy: gains in productivity and accessibility. These measures are being Consistent expansion of tour operations supplemented by the targeted expansion of the direct sales channel In 1999, our Italian joint venture Kuoni Gastaldi Tours S.p.A. Net-Vacations. In spite of operating problems, the specialist successfully pushed ahead with the refocusing of its business units journal “Reiserevue” again voted Special Traffic the best long-haul commenced in 1998. The company reduced the proportion of conso- operator, the best specialist, the best USA operator in Holland, lidator (flight only) business as planned but was able to offset this as well as awarding the company the number 2 accolade for Carib- entirely by increased sales of traditional holiday arrangements. The bean and Far East tours. turnover remained steady at last year’s level of CHF 237 million (CHF 239 million; –0.8%) in spite of a sluggish December. Nonethe- Spain: less, results were better than budgeted. A positive trend Australia and the US are the company’s most important and The introduction of restructu- most popular scheduled flight destinations and now account for ring measures at Kuoni Spain in over 50% of sales. Kuoni Gastaldi has now established itself as the 1998 had a positive impact in market leader in Australian holidays. The range of charter desti- the year under review. The ero- nations was expanded to include the Dominican Republic and Mexico sion in both sales and income was which are very popular in the Italian market. halted, while market acceptance and product competence were re- Netherlands: established. Despite still low turnover growth of just 3.4% to In a phase of restructuring CHF 30 million (1998: CHF 29 million), earnings clearly improved Rapid growth in recent years signalled the need for a structu- due to strict cost management and more systematic marketing. ral improvement The newly consolidated structures enabled charter flights to the Mal- at our Dutch sub- dives to be relaunched, enabling the Spanish subsidiary to recapture sidiary Special this interesting niche market. Once again, the USA was the lea- Traffic and triggered ding holiday destination, with a 32% market share and an entirely a complete company new product range on offer. Asia and the Maldives followed, reorganisation in the year with 21% and 18% respectively. under review. As a result, turnover improved by just 1.7% from CHF 58 million to CHF 59 million. The new management has introduced changes including a new IT system in the front and back offices. These should enable the Marcel Herter company to react more quickly and efficiently to future changes in the Executive Vice-President SBU Europe market. The complete redefinition of processes should lead to major 42 SBU BUSINESS TRAVEL 43

Austria: A promising launch Benefiting from the acquisition of Cosmos Our Austrian business travel segment is developing well and is The Strategic Business Unit (SBU) Business benefiting from the 1999 acquisition of Reisebüro Cosmos Ges.m.b.H. Travel, newly created on 1 January 1999, Its Business Travel unit has been merged with BTI Austria. The integration of the two Business Travel units has been smooth and the enjoyed a successful launch. Prior to positive impact of synergies is this, each country’s business travel opera- already being felt. tions had been handled by the relevant BTI Austria reported 1999 national subsidiary. Despite difficult mar- turnover growth of around 36% to CHF 7.1 million (1998: ket conditions which have seen airlines CHF 5.2 million). Organic cutting their commissions worldwide, the Reto Bacher growth excluding the acquisition Executive Vice-President new SBU can look back on a good year. SBU Business Travel was around 7%. Turnover, which newly comprises only Germany: commissions and service fees from business travel retailing as BTI Euro Lloyd confirmed as top 3 operator a result of the change in turnover reporting (see page 13), exceeded The integration of the former Kuoni Reisen GmbH and Euro expectations with a rise of 2.5% from CHF 158 million to Lloyd GmbH, acquired in February 1998, is now complete. The CHF 162 million. EBITA improved by an German subsidiary BTI Euro Lloyd GmbH & Co. KG, which was outstanding 61.5% to SBU Business Travel SBU Business Travel CHF 15.5 million Changes in Turnover Changes in EBITA

(1998: CHF 9.6 million). As part of CHF m CHF m 200 20 its strategic alliance with the global joint

venture Business Travel International, the SBU operates under 150 15 the name of BTI, focusing on Central European markets. 100 10

50 5

0 0 95 96 97 98 99 95 96 97 98 99 44 SBU BUSINESS TRAVEL 45

born out of the merger, has successfully confirmed its position as Retailing in mid-1998. The result includes trade fair travel revenues top 3 operator in the German business travel market following which have been part of the Business Travel division since 1999 the reorganisation and streamlining of its organisational structure. (CHF 2.5 million). Nonetheless, some merger-related client defections, which did not take In Switzerland, BTI has reacted to cutbacks in airline commis- effect until 1999, could not be fully offset by new client acquisitions. sions by introducing a service fee and modifying agreements with Turnover slipped from CHF 96.0 million to CHF 87.3 million, a drop clients. Corporate clients have generally accepted the introduction of of –9.1%. However, the reorganisation gave EBITA a noticeable fees for travel services which they now recognise as value-enhancing. boost. The Leisure and Group Consultancy services by Key Account Management, new products Tours segments belonging to the and IT system consultancy generate new income flows that contribute parent company as well as the to our earnings target. subsidiaries reported satisfactory growth. With the airlines cutting their commissions further, the German business travel market remains difficult. BTI Euro Lloyd is responding to the challenges ahead with the consistent introduction Reto Bacher of service fees and a new strategic business focus. Executive Vice-President SBU Business Travel

Hungary: Steady growth BTI Hungary (Kuoni Utazás Kft.) reported an increase in turnover from CHF 0.4 million last year to CHF 0.5 million in 1999. The remarkable 25% jump is attributable to organic growth. BTI Hungary improved performance and outpaced overall growth in the Hungarian market.

Switzerland: Market leadership further reinforced 1999 was a successful year for BTI Switzerland. Turnover forged ahead by around 20%, jumping from CHF 56.0 million to CHF 67.5 million. This was the result of both organic growth and shifts deriving from the separating of Leisure and Business Travel SBU INCOMING AND ASIA 47

Major improvements

Our subsidiaries in India and Hong Kong, Kuoni Travel (India) Ltd. and P&O Travel Ltd., have been migrated to form part of the Strategic Business Unit (SBU) Incoming and Asia in the wake of the reorganisation of the former SBU International (now SBU Europe). The expanded SBU has fundamen- Ibrahim Atallah tally developed very positively, although Senior Vice-President SBU Incoming and Asia trends in the different national organisations were mixed. Total turnover jumped 15% to CHF 451 million (1998: CHF 392 million) while EBITA underlined the positive trend with an impressive contribution of CHF 5.5 million, equivalent to some 160% increase on the previous year (CHF 2.1 million). This is mainly due to the recovery of the Far Eastern markets following their recent economic troubles.

Incoming Services Europe: The turnaround resumes Our core business, Incoming Services Europe, is benefiting from the fact that its source markets in the Far East such as Taiwan, Korea and especially Thailand have now more or less returned to the level of economic prosperity they were enjoying prior to the Asia crisis of 1997. Helped in addition by an excellent performance from management and staff in Japan, turnover grew 19.2% to CHF 329 million (1998: CHF 276 million). 48 SBU INCOMING AND ASIA 49

Despite fierce competition in Japan, which remains our most Kenya as a holiday destination. The positive trend is continuing; important source market for holidays to Europe, growth in both the company has been restored to health and we are optimistic for the sales and margins was above-average. Our US source market was im- future. pacted negatively by the war in Kosovo in the first half of 1999, but recovered in the second half to produce a satisfactory full-year result. Asia: The turnaround in the division, which began in 1995 and Hong Kong market remains sluggish suffered a temporary setback in 1997 due to the Asia crisis, has now Hong Kong is still burdened by the economic woes wrought resumed. We are very confident about business in 2000, with the by the Asia crisis in 1997 and the return of the territory to Chinese brighter economic outlook and much improved consumer confidence rule. Consumer confidence remains muted, and our joint venture having spread across the entire region including Japan. P&O Travel failed to meet our expectations. Turnover decreased by –11.3% from CHF 57.3 million to CHF 50.8 million. The competitive Greece: environment is very fierce with participants fighting for a share of Successful second semester a smaller market, and this is exerting extreme pressure on margins. Both of our Incoming subsidiaries in Greece, Hellenic Tours In contrast, P&O Singapore achieved a satisfactory result. and Hellenic Island Services, surpassed our expectations in 1999. The first six months were very difficult for Greece as a holiday desti- India: nation given the war in Kosovo, but losses were quickly offset Trend confirmed from July onwards. By year-end, turnover slightly exceeded Once again in the year under review, Kuoni Travel (India) Ltd. the previous-year level of CHF 26 million. A parallel recorded an excellent result. Turnover jumped by an impressive improvement in margins meant Greece achieved a new 29.5% to CHF 40.4 million (1998: CHF 31.2 million), thereby fulfil- record result. ling our high expectations. The company was able to build on its position as market leader for guided tours overseas. The positive gene- Kenya: ral economic development in India also underscores our belief that Moving ahead we made an excellent investment when we acquired Kuoni Travel Our East African subsidiary India in 1996. Private Safaris (East Africa) Ltd., also an incoming operator and part of the Kuoni Group since May 1998 saw a doubling of turnover from CHF 2.7 million to Ibrahim Atallah CHF 5.0 million in 1999. Senior Vice-President SBU Incoming and Asia This underscores the renewed attractiveness of INFORMATION TECHNOLOGY 51

Exploiting synergies

Information technology (IT) is becoming increasingly important as a supporting instrument for achieving the Group’s business objectives. In line with this growing significance, IT was made into a separate Group unit in October 1999. This decision is a recognition of the fact that IT activities across the Group are becoming more Konrad Iten and more challenging, complex and costly, Senior Vice-President Chief Information Officer and therefore need to be coordinated at Group level.

Our motivation for grouping IT resources together at Group level is to achieve the following aims: • Improved co-ordination of the various IT projects within the Group • Increased global use of synergy potential • Optimisation of costs • Concerted use of IT, optimally geared to company strategy, to achieve Group aims and to secure Kuoni’s market position by taking early advantage of forward-looking IT initiatives. A large number of IT activities were undertaken in the year under review. Of these, three major Group-wide projects stand out. 52 INFORMATION TECHNOLOGY 53

Y2K: Successful millennium changeover for future development. The members of this In order to ensure that the millennium changeover passed off team have been relieved of day-to-day without a hitch, we launched our Y2K project way back in 1997. responsibilities so that they can concen- Our main aim was to spend as much as was necessary, but as little as trate fully on the task in hand. At coun- possible. In this we were successful, and Kuoni began the year 2000 try level meanwhile, our subsidiaries without any problems of any kind. One valuable side-effect of are leading the field in a number of the project is that it has allowed us to compile a comprehensive and different markets, pushing ahead detailed IT inventory at Group level, which will continue to be ex- with the development of their Inter- tremely useful in the future. net sites. At both levels, the aim also is to set us apart from the competi- ACE: Ultra-modern back-office system tion in the global electronic market- The aim of the ACE project is to replace the mid-office appli- place, and to offer customer-oriented, cation OPAL, which is used in our branch offices in Switzerland and clearly positioned solutions with uniform Austria to process customer orders “behind the scenes”. In fact, business processes. though, the project involves much more than simply replacing an out- It is a tribute to the tireless commitment dated distribution program: ACE, which we have been gradually of the entire unit that we were able to success- introducing since last year, provides our travel agencies with an ultra- fully launch a large number of projects in the year under review. modern communications infrastructure that allows multiple use, I should like to express my gratitude to all involved. I am motivated leading to a further substantial optimisation of procedures. and confident that we will achieve the ambitious aims we have set ourselves for the year 2000. E-commerce: Fast-growing sales channel E-commerce is a fast-growing sector of the future, and for the travel industry it represents a special challenge. The Kuoni Group, aware of the economic potential that is released by the combination of information technology and telecommunications, is active on a number of fronts. At Group level, a core team is developing scenarios

Konrad Iten Senior Vice-President Chief Information Officer 54 THE KUONI NETWORK IN EUROPE 55

Stockholm

København Manchester

Hamburg Amsterdam London Bremen Berlin

Essen Lille Köln Paris Frankfurt Nürnberg Metz Strasbourg Freiburg München Linz Wien Konstanz Mulhouse Salzburg Lyon Zürich Innsbruck Györ Bordeaux Budapest Graz Milano Mestre Grenoble Torino San Sebasián Genova Bologna Nice Livorno Madrid Pescara Barcelona Valencia Roma Bari Napoli

Palermo Catania Athínai Iráklion Ródos

Leisure Travel Business Travel Incoming 56 THE KUONI NETWORK IN AMERICA THE KUONI NETWORK IN ASIA 57

Tokyo Nagoya Beijng Seoul Osaka Fukuoka

New Delhi

Taipei Hong Kong Mumbai

Bangkok

St. Louis Singapore

Atlanta

Leisure Travel Incoming

Antigua

Barbados

Incoming Hotels Leisure Travel 58 THE KUONI NETWORK IN SWITZERLAND 59

Weingarten Ravensburg Wangen Schaffhausen Konstanz Friederichshafen Lörrach Rheinfelden Frauenfeld Kreuzlingen Bülach Winterthur Dielsdorf Rorschach Wil Basel St. Gallen Regensdorf Liestal Aarau Baden Zürich Uster Uzwil Heerbrugg Dietikon Olten Zollikon Meilen Langenthal Horgen Grenchen Sursee Buchs Zug Bienne Vaduz Solothurn Pfäffikon La Chaux-de-Fonds Emmenbrücke Luzern Neuchâtel Lyss Schwyz Bern Chur Payerne Thun Yverdon-les bains Fribourg Interlaken Renens Lausanne Ecublens

Nyon

Sion Bellinzona Genève Ascona Locarno

Agno Lugano

Chiasso

Leisure Travel Business Travel Incoming OUR MARKET 61

Top ten keep on growing The drive for growth of Europe’s top ten travel companies continues unabated. Following major increases in turnover in 1998, the European “giants” continued to grow in the year under review – albeit at a less rapid rate. For the time being the focus is on consolidating new acquisitions.

Last year saw new records in Europe’s two biggest tourism markets, Germany and the UK, with further increases in both sales volumes and passenger numbers registered by the leading operators. Britain’s Thomson Travel and Airtours as well as Germany’s TUI Group and C&N are fully vertically integrated travel groups: As well as being tour operators, they own travel agencies, hotels, airplanes, incoming agencies and, in some cases, ships. Whereas British operators are particularly keen to expand their transport portfolios, their German counterparts continue primarily to boost their ownership of hotels. The strategies are nonetheless identical: both aim to strengthen control over and increase the number of revenue streams, enabling the vertically integrated company to enhance earning power and exert a greater influence on quality throughout the entire value chain. However, a strategy of this nature does conceal an increased level of risk. If bookings to a certain holiday destination sud- denly collapse – as happened last year in Turkey – empty hotels can have a big negative impact on profits. Two companies were in the spotlight in 1999 as the European tourism sector continued to consolidate: the UK’s First Choice and 62 OUR MARKET 63

Germany’s DER, a subsidiary of Deutsche Bahn AG. The takeover 1999 turnover in CHF of the top For the first time in 2000, TUI turn- ten European travel companies* battle between the Kuoni Group and Airtours for First Choice domi- over will also include Thomas Cook, nated the first half of the year. After the merger between First TUI Group boosting the total to DEM 20 billion Choice and Kuoni failed in July due to opposition from First Choice (CHF 16.5 billion). TUI, also known Airtours shareholders, although the management of both companies was in in Germany as the “red camp”, has C&N favour, the hostile attempt by Airtours to take over First Choice was further enhanced its position with the Thomson rejected by the EU Competition Authorities in September. In the Travel takeover of L’Tur, a last-minute bidding process for DER, Airtours also came second, with Rewe, the Kuoni operator, and last year grew faster

German trading and tourism group, prevailing. LTU than the tourism market as a whole.

No other important German bulk tour operators is left for Rewe Airtours and C&N follow sale, and TUI and C&N jointly command some 50% of the First Choice in second and third place in the Euro-

German tour operations market. In the UK market, the cards have Nouvelles pean top ten. 1999 turnover at Frontières been dealt as well. Britain’s big four tour operators, Thomson, Airtours exceeded CHF 9.7 billion, Club Airtours, First Choice and Thomas Cook (TUI Group), control over Méditerranée with profits amounting to CHF 390 in CHF billion. 0510 15 two-thirds of the tour operations market as well as three-quarters million1) for the past year. The UK * Because the European travel groups do not of retailing through their own travel agents. In contrast, the French use the same accounting principles, sales figu- tour operator was in takeover mood market is much less consolidated. The overall foreign tourism res are not always directly comparable. in 1999. Given its market presence market is only one quarter the size of Germany’s, and different rules in Scandinavia, Germany and the US and its numerous acquisitions apply. The French tend to make their own independent last year, Airtours records a big jump in profit. travel arrangements, giving French bulk tour opera- The German C&N is 50% owned by Lufthansa and 50% tors a lot less leverage. Club Méditerranée by Karstadt/Quelle. Last year, turnover of the so-called “yellow camp” and Nouvelles Frontières still lead the market. grew to CHF 7.5 billion. The main focus of C&N’s activities, Following a change of name, Europe’s besides its Condor airline, is its tour operations which it markets number one operator is now called TUI through the Neckermann, Terramar, Aldiana, Air Marin, Kreutzer, Group (formerly HTU or Hapag Bucher and Fischer brands. C&N owns 1,300 travel agencies and Touristik Union). The TUI Group 238 hotels and club facilities. is owned by the German group 1999 was less successful at Thomson Travel. A new manage- Preussag. Of the latter’s ment team was installed following a drop in 1999 profits1) from DEM 32 billion turnover, CHF 318 million to CHF 194 million. Its first task is to improve pro- TUI contributes 44%, and fitability in the company’s core home market, the UK, before em- CHF 493 million to operating barking on any new foreign takeover bids. Thomson owns Britannia profit1). The TUI Group owns over Airways, the Lunn Poly chain of travel agents, Fritidsresor – the 3,600 travel agencies across Europe. number two operator in Scandinavia, and recently acquired Finnmat- 64 OUR MARKET OUR COMPETENCIES 65

kat of Finland. Thomson’s 1999 turnover exceeds CHF 6 billion. Numbers 5 to 8 in the European league table have a turnover Leisure Travel of CHF 3 to 4 billion each: they are the Kuoni Group, LTU, Rewe and First Choice. The Kuoni Group achieved a record turnover Leisure travel, our core activity, is the strongest pillar of CHF 3.5 billion2). With acquisitions in Scandinavia (Apollo, Alle- of our business operations, contributing 85% to tiders, Dane Tours, Kisbye Rejser), the USA (Intrav), Holland group turnover. It consists of Tour Operating, which (Inter Holland Travel), Austria (Cosmos) as well as the latest expan- creates the holiday “product”, and Retailing which sion in the merging market India (SITA World Travel), Kuoni has sells that product professionally. underscored its leading position among European travel companies since the beginning of 1999. Germany’s LTU Group, in which Producing, organising and SAir Group has a 49.9% stake, staged a recovery after two years of retailing holidays are our core com- plunging profits. Meanwhile, Rewe Touristik has become another petencies. Tour Operating selects big player in the German market: the trading company, which already the most attractive destinations, con- owns the tour operators ITS and Atlas, boosted its tourism turnover tracts with hotels and other service through the acquisition of DER to over CHF 3 billion. First Choice, providers such as transportation with operations in the UK, Ireland and Canada, also reported a turn- companies, buys charter quotas, over exceeding CHF 3 billion in 1999. identifies competent local agents and The two French tour operators Nouvelles Frontières and Club organises transfers and excursions with them. At major destinations, Méditerranée fill slots nine and ten in the European top ten. we also establish our own local presence. In the mid-to-upper

1) Profit figures cannot be directly compared price segment, we sell leisure holidays under the Kuoni brand in our due to the different tax regimes in individual countries. home market of Switzerland; but the Kuoni brand also has an 2) Group turnover has been calculated on the excellent name for quality in other countries like the United Kingdom following new basis: commissions from the sale of leisure and business travel services and tour and France. operating turnover. In Switzerland, the Group also operates under the budget brand Helvetic Tours and offers a number of specialist brands in a variety of niche markets. In addition, we own Edelweiss Air, our own Swiss charter airline. The subsidiaries both in Europe and overseas use a similarly differentiated system of tailor-made branding. In Retailing, it is our business to sell our holiday products from a professional platform. In Switzerland, for example, we have our own network of 120 sales outlets. Most of our subsidiaries are also working intensively on the development of alternative distribution channels such as the Internet, digital TV and direct sales via call centres. 66 OUR COMPETENCIES 67

Business Travel Incoming The days are long gone when a business travel spe- Whether it’s a snowmobile safari in Lapland, a gour- cialist was just there to offer traditional travel advice met trip back to Caesar’s ancient Rome, or a heli- and provide the travel documents. What’s needed copter flight over the Loire valley – the wide range of today is the ability to manage the business travel bud- services offered by Incoming is tailor-made. get of our corporate customers. This means not just Foreign travel agencies form the bulk of Incoming’s keeping costs under control, but also reducing them. customers.

“Travel and Entertainment” is frequently one of the biggest Incoming offers foreign tour operators a professional orga- cost factors in a company’s spending budget. And its importance is nising capability for overland holiday arrangements for both growing as the volume of travel increases on the back of accelerating groups and individuals. While our subsidiaries in Greece and Kenya globalisation in the world eco- work mainly with European customers, the focus of our 476 staff nomy and the greater need for at Incoming Services Europe is on servicing the needs of customers in global communication in multi- the US, Japan, India and other Asian countries on their travels in national organisations. Europe. The eleven European “Destination Management Companies” The role of a business travel also work for travel agencies and their customers from South specialist is therefore no longer America, the Middle East and Eastern Europe. just the efficient organisation of The classic tour is not the only product in demand. Customer clients’ business travel activities, requirements also include special interest and incentive trips, semi- but also primarily the attainment of a substantial reduction in nars, congresses and educational tours. For example, a Japanese tour their travel costs. This can be achieved at three levels: cost-effective group might be interested in seeing how genuine Swiss cheese is travel expenditure (optimising purchasing), structural costs (inhouse made or how a real Austrian apple strudel is baked. units or outsourcing to travel agents) and process costs (optimi- It may be old hat, but romantic chalets, stunning glacier land- sing internal processes in the organisation). Here, the new media such scapes and a trip to the Jungfraujoch at the Top of Europe are still as the Internet and system-based solutions like online booking systems the highspots of a dream holiday to Europe for most foreign tourists. are playing an increasingly significant role. Under the BTI brandname, Kuoni’s business travel unit offers tailored solutions to the two major client segments: small and medium-sized enterprises (SMEs) and major national and multina- tional groups. 68 OUR COMPETENCIES 69

Zanzibar, the lack of the necessary infrastructure is generally one of Pioneer in the Indian Ocean the main hurdles to the development of the tourist industry. For a travel destination to become a charter destination, there has to be Private Safaris, a subsidiary of Kuoni Switzerland, has accommodation available that entered the charter market for holidays to Zanzibar, “Respect for meets a certain standard. There is becoming one of the first European tour operators to also a need for airports that can cover this corner of Africa. It needs a lot more to local customs handle larger planes, as well as ade- launch a new destination successfully than negotiating must be quate roads and transportation. contracts for plane seats, hotel beds and local servi- As well as getting an offer from ensured.” the charter airline Balair/CTA for ces: a large measure of understanding of the customs a Zurich–Mombasa–Zanzibar flight, and geography of the newly-featured location is a information had to be gathered on flying rights, runway lengths, prerequisite. fuel availability and complementary tourist infrastructure. A suitable agency also had to be signed up. Obtaining sufficient hotel capacity Once the retreat of adventurous backpackers seeking the ulti- proved less than easy. Moreover, other European tour operators had mate experience, Zanzibar has moved up-market to become an begun to show a major interest in the new tourist destination. exclusive destination for today’s luxury-seeking traveller. The inclu- Finally, the island government also wanted to meet the Swiss sion of charter flights tour operator. The Zanzibar president was keen to discuss the to Zanzibar in the impact of tourism on his mainly Moslem population. He Private Safaris especially sought to ensure that tourist behaviour would programme was preceded respect local habits and customs. Private Safaris believes by intensive discussions. it to be very important that the socio-cultural aspects Seemingly endless beaches, turquoise of a new holiday destination be handled with care lagoons and tropical abundance make it an and respect, giving tourism the chance to develop island ideally suited as a complement to the range a positive image. of safaris offered on the Tanzanian mainland. The key Our careful preparations have borne argument for including Zanzibar in the range was the realisation fruit. In the meantime, planes from Italy, Ger- that customers were looking for a new destination with major ap- many and Kenya are landing in Zanzibar too. peal, in addition to Kenya. The East Africa specialist Private Safaris wanted to offer something new with Zanzibar, the island with a fairy-tale ring to its name. In a short time a whole bundle of issues had been clarified. Particularly in the less developed regions of the world, such as 70 OUR STAFF 71

company is even higher, reaching 66%. In recent years, we have seen Young and enterprising a marked increase in the number of women entering middle management at Kuoni. Today, that figure has risen to around 50% of all our The Kuoni Group is a global operator. Despite being management positions worldwide. centrally organised, the company has a flexible We are equally proud of the fact that, in our home market approach that seeks to take account of differences in of Switzerland, the average length of service of our employees is eight cultures and market requirements. The Group’s years – a particularly fine achievement given the low average age personnel policy bears the stamp of the individual of our workforce. There are a number of reasons for this: our flexible business units and their particular location. staffing policy; the good career and development opportunities offered within the Group; targeted, ongoing training; and Across the Group as a whole and at all levels of the last but not least, our organisation, an entrepreneurial spirit and inno- “young” working environ- vation are especially encouraged. ment coupled with an open management culture that At the end of 1999, the Kuoni Group employed 6,552 staff is based on management by worldwide, representing an increase of 6.5% over the previous objectives. The forward- year. This has resulted from the continuing growth of our business looking options we offer in and our expansion into new markets. terms of working hours, including jobsharing and freelance models, A factor that characterises the tourism industry worldwide is similarly demonstrate our flexible and open working attitudes. the above-average number of staff in the 20-to-35-year-old age group. 11% of our staff are employed on a part-time basis. We can also offer Kuoni is no exception here, with 4,048 or 62% of our workforce staff members attractive opportunities to work abroad since we belonging to this category. The proportion of female workers in the have offices in 27 different countries. Postings may form part of an internship or may be for longer periods. Our staff need to satisfy the standards of very critical customers in a fast-moving industry. They have to be highly independent, self-reliant and quality-conscious. Looking ahead, Kuoni’s success will continue to be dependent on the qualities of its staff. These qualities of entrepreneurship, readiness to accept change and pleasure in giving impeccable customer service will remain our mainstays. 72 OUR STAFF 73

we discuss next year’s prices, negotiate room quotas and their expiry Working in New York dates, terms of payment and attractive extras – exclusively for Kuoni. We analyse the state of current bookings and discuss possibilities Simone Balmer is one of around 40 purchasers for for improvement. On a tour of the hotel, I finally verify that every- the Kuoni Group. She has been responsible for thing matches the details in our catalogue. In hotels which are new to the product range offered by Kuoni Switzerland in the our programme I also ask to see the smallest room and the worst- Eastern USA for the past four years. Her working situated room. ‘Health and year can be split into four distinct periods. These start Safety’ checks are mandatory, “Purchasing trips with overall planning, followed by purchasing and meaning I monitor the emer- give us the chance gency exits, the safety pro- the drawing-up of contracts, and end with catalogue visions and the written instruc- to check out production. Five weeks of her year are spent tions for guests. Complaints, abroad and include visits to trade fairs like Pow Wow however, are rare in the USA our featured hotels and ITB, where her negotiating skills come into since this is a country with first hand.” play. Simone Balmer takes up the story herself as she very strict standards. 40 minu- describes what purchasing actually entails, using tes later I am at the next hotel – four more to come before midday. the example of a trip to New York City. After a two-hour working lunch comes an afternoon of discussions at another four hotels. That evening a hotel owner has invited me to “I arrive at Newark Airport where our limousine partner is alrea- dinner. Meetings like this are important as we get to know each other dy waiting to take me to Manhattan. I take advantage of the oppor- better and form a more solid basis for future negotiations. tunity to check the model of car, driver, service and punctuality. Once in To cut a long story short, my schedule repeats itself over the my hotel room it is out with my appointments diary for a review of next four days in which I visit a total of 40 hotels. Six of them are new. tomorrow’s schedule. As my first appointment is not until 9 a.m., One hotel manager invites me to a musical – which is ideal, as culture I decide to set off on foot at 8.30 a.m. to check out for news en route. does not get much of a look-in during the daytime. Every evening I get On the way, I discover an interesting hotel in a prime location out my laptop and record the results of the day’s endeavours. and pick up a brochure. If possible, I will make an appointment My week ends with a flying visit to the Pow Wow in Miami. for Pow Wow, a fair at which around 2,600 US service providers and After a series of social events with the service providers plus internal international travel companies gather group meetings, the fair itself takes place over a three-day period. annually. On the dot of nine, The fair’s organiser has fixed all the meetings. A gong sounds every 20 I meet the sales mana- minutes telling you to move on to the next one. Wednesday evening ger of the first sees the official close which coincides with the end of my purchasing hotel on my list. trip. The next stage, the drawing-up of the contracts, represents a Over breakfast, fresh challenge.” 74 CORPORATE GOVERNANCE 75

As a travel group the Kuoni Group has high standards to meet Creating value for all since its Corporate Governance must take account of the classic stakeholders such as employees, customers and shareholders, as well In recent years, the frequency, extent and suddenness as its service providers around the world and the people in its des- of change have all increased and the pace is set tination countries. This transforms our Corporate Governance into a to shift up another gear. Company managements are challenge spanning the entire globe. forced to remain constantly vigilant. They must At Kuoni, Corporate Governance is more than a question evaluate new situations without delay and take in- of structures, the composition of Executive and Corporate Bodies and stant action. The parameters for these decisions the definition of tasks and responsibilities. We also understand it as a philosophy that must be lived 24 hours a day. Thus, the Group are laid out in the principles of Corporate Governance. meets its responsibilities to its stakeholders while at the same time conducting its day-to-day business activities. Corporate Governance structures the division of powers be- We believe that this can be best achieved when the company’s tween the different entities governing the company and provides own view of its mission is aligned with the interests of all its guidelines on how to handle the interests of its various stakeholders. stakeholders. A well-managed company understands the importance The following are examples from the Kuoni organisation: of attracting competent and professional people, providing them • The Board of Directors is composed of independent persons. with the skills to carry out their particular tasks and of keeping them • The Group accounts are drawn up in accordance with International motivated. Skilled and satisfied employees perform well and win Accounting Standards to ensure a high level of transparency. loyal customers for the company. And loyal customers are the engine • The Group seeks to optimise its accounting processes continuously. that drives strong earnings momentum. This benefits the share- • A professional risk management is in place to deal with the risks to holders who ultimately decide – directly or indirectly – on the compo- which the company and its stakeholders are exposed. sition of the Board of Directors and the management. The circle is • Kuoni attaches great value to competent and pro-active communica- thus complete. tion with both internal and external stakeholders. A company can only remain successful in the long-term if it • Group strategy is subjected to regular review. is able to create value for all its stakeholders. The active implementa- • The Group’s planning and budgeting systems use annual budgets tion of this Corporate Governance philosophy forms an integral which require the approval of the Board of Directors. part of the management • Controlling and treasury functions are continually optimised to tasks performed by our ensure high efficiency. Board of Directors • The total emoluments of the Executive Board and Board of Direc- and Executive Board. tors are disclosed. • Employees are offered continuous training and education. • Care for the environment is part of the company’s mission statement. ECOLOGY 77

Think global, act local Kuoni is committed to a policy of respect for the environment. We believe that the travel business can only flourish in the long term if the environment remains intact. The responsible use of natural resources needs to be reflected in specific measures both within the Kuoni organisation and its subsidiaries as well as at our service providers.

Tourism is only sustainable in the long term if we treat our natural resources with due care and respect. We demonstrate our commitment to this belief in our group mission statement: “We support environmentally friendly ideas and solutions”. Global tasks can only be solved by a global effort, and we regard international cooperation in this field as particularly significant. This is why Kuoni is a member of Green Globe 21. The chairman of our Board of Directors, Daniel Affolter, also sits on Green Globe 21’s Directors’ Board. Green Globe 21 was founded in 1994 by the World Travel & Tourism Council (WTTC). With its head office in Cambridge, UK, it is an organisation promoting the ideas of environmental management and awareness. Its agenda is based on Agenda 21 of the 1992 Rio environmental summit and promotes the idea of sustainable tourism worldwide. Currently, there are 600 members of Green Globe 21 in 100 different countries. The organisation is an international leader in its field and works together with environmental experts and the tourism industry to 78 ECOLOGY 79

create global standards and introduce certification that will allow Air – the airline of Kuoni Reisen AG – travellers worldwide to consciously choose holidays that respect the has given preference to environmentally environment. friendly technologies with its in- In its Swiss home market, Kuoni Reisen AG is one of the signa- vestment in a modern fleet of tories of the Swiss Association of Travel Agencies’ Crete Declaration aircraft that uses less fuel, emits (see box). Together with the Asso- fewer harmful substances and gene- “Global problems ciation as well as environmental rates less noise. Three new Airbus A320-200 were purchased in 1998, and tourism experts, Kuoni and and another of the latest generation of aircraft, the new Airbus require other Swiss travel companies 330-200, will join the fleet in November 2000 for use on long-haul aim at producing practical and routes. Nearer to home, we are applying our policy of responsible global solutions.” straightforward standards natural resource usage to the ecologically sound renovation of our that promote the objectives of head office in Zurich. Environmentally friendly management of the declaration. Service providers meeting these standards regarding internal resources includes the introduction of energy-saving lighting, refuse disposal, water or energy supplies will in future be certifi- water regulators and insulating glass as well as the reduction of cated for their efforts. The regional authorities in the targeted areas the level of air conditioning; waste is separated, paper and office will also be increasingly encouraged to adopt environmentally machinery are recycled. friendly methods. To lend more weight to the environmental management issue, Kuoni Switzerland has created a new post for ecology and environment. For some time now, we have been pursuing a policy of environmentally conscious management Crete Declaration within the Group and its subsidiaries “As a leading tour operator in the Swiss Association of Travel Agents, we are worldwide. Edelweiss committed to ecological and sustainable tourism.” We encourage our hotels to devote attention to: • water, energy and waste management • ecological construction and purchasing policies • integration of local activities and products

We support these efforts by: • participating in the organisation of specialist environment seminars for hotel employees and our own staff • rewarding activities that conform to ecological standards • participating in the collection and evaluation of data and in setting quality standards for environmentally friendly tourism 80 HEALTH AND SAFETY 81

offer – from a 17-storey hotel to Action Plan for 2000 Committed to an exclusive bungalow complex, • Continued evaluation of risks small guest house or the no- and priorities by country and customer safety frills overnight facilities offered service provider on a safari adventure holiday. • Cooperation with govern- In 1998 the Kuoni Group created a group competence Kuoni is also an active part- ment representatives world- centre for Health and Safety. The co-ordinators of ner in negotiations with govern- wide with the aim of im- this centre have the task of continuously monitoring ment representatives around the proving standards the health and safety standards of our services world. The focus of these dis- • Development of a global worldwide. They are also responsible for creating a cussions is to bring the status of health and safety system for comprehensive database with information on the health and safety legislation the entire tourism industry current standard of our own range of products and in Europe to foreign government • Drawing up of safety attention. Countries whose guidelines for our service services as well as those of our business partners. standards in this area fall below providers Kuoni has always demanded the very highest safety standards those in Europe are accorded • Monitoring adherence to for its customers as an elementary factor in our level of service. In priority. the above the interests of those who travel with Kuoni we attach great impor- For example, discussions tance to cooperation with service providers and governments and to were held in 1999 with the Minister of Transport for the Maldives the development of systems for the evaluation of risks and priorities. over the safety of Dhoni boats – the traditional means of transport The Kuoni Group has developed its between the Maldive islands – with the result that improvements were own system for the measurement made. Additional discussions with the Minister for Tourism are of health and safety standards planned to consider further measures for improvement and to ensure at the accommodation that standards keep abreast of changes in requirements. it offers. Its principal Kuoni is a prime mover for positive change in this area. At aim is to raise health a recent meeting, the Cuban Minister of Health made an enthusiastic and safety standards report about the introduction into Cuba of a system for the regular worldwide and to control of kitchen and food hygiene. Health and safety inspections by eliminate any deficien- Kuoni and other tour operators in this area were a decisive factor in cies by seeking to this development. At the same time changes were made in the training find solutions with our system to comply with European standards. service providers. The system allows us to measure and monitor all the accommodation we SOCIETY 83

At home in the SOS Children’s Village For the last three years, both the Kuoni Group and its national subsidiaries as well as the Kuoni and Hu- gentobler Foundation have been supporting the work of the SOS Children’s Village, the world’s largest private humanitarian organisation designed to help children. Naturally we were keen to take a closer look at the very first village where it all started 50 years ago.

February 2000 in Imst, Austria: Sporting a huge sunny smile, two-year-old Janine greets us with a somersault. Before Janine was even born, her natural mother was beset with problems and it was clear that she would be unable to cope with a baby too. Nowadays, Janine is delighted to receive visitors. And of visitors there is never a shor- tage! For Janine and her brothers and sisters – Philipp (5), René (7), Silvia (12) and Ulrich (14) – live in the Imst Children’s Village in the Austrian Tyrol where Her- mann Gmeiner founded the very first SOS Children’s Home some 50 years ago. 84 SOCIETY 85

“Haus Frieden” or “Home of Peace” not only offered war orphans a crane driver, all of whom warmly recall their SOS roof over their heads but also gave them a mother and a whole new Village childhood. family of brothers and sisters. Soon more houses were added. Today’s The diversity of peoples, natural lands- village comprises 15 buildings, housing 13 families at present. capes and cultures in the world is the founda- Imst is just one of 400 SOS Children’s Villages situated in 131 tion on which our business as a travel agency countries across the globe. Wherever they are, whatever their differen- is built. We would therefore like to give some- ces in culture and religion, all SOS Village Children are brought up thing back to our travel destinations in the form according to the same four principles: Every child has a mother, a set of our support for the SOS Children’s Village. of brothers and sisters, a house and a village. Local women are spe- The words of its founder Hermann Gmei- cially “recruited” in each country and are carefully trained for their ner are as valid today as when he uttered role as SOS mother. Most of the villages have their own kindergarten them: “The good that is done in the world which other children from the region can also attend. In Europe, only happens when people do a little bit children from the SOS Children’s Villages all visit public schools. In more than they really have to.” this way, they are in contact with Our commitment to the SOS Children's Village people from outside the village and July 97 Contract signed can better cope with the “real” world July 97 An SOS ambassador is appointed at each of our in later life. In countries with poor group companies educational systems, there are special December 97 The Kuoni Home in Los Mina in the Dominican SOS-Hermann-Gmeiner schools. At Republic is opened present, 153 exist across the globe. January 98 An information brochure is produced in eight Children from outside the SOS Villa- different languages ges may also attend these schools. August 98 A joint SOS Children’s Village and Kuoni crib is Normally speaking, it would exhibited at the 50th Anniversary of Zurich Airport now be mealtime at the Imst Child- December 98 Christmas tombola at Kuoni head office, ren’s Village. But our visit has inter- with proceeds going to the SOS Children’s Village rupted the schedule. Philipp and René April 99 The Kuoni Home in Umtata, South Africa is opened are both hungry and are making July 99 Kuoni supports SOS Children’s Village 50th Anniversary celebrations it quite clear that it’s about time we October 99 Assistance in the making of an SOS film, were leaving. A few strict words from their SOS Children’s Village shown on all Swissair scheduled flights worldwide mother Christine Andergasser make little difference. The five children December 99 Christmas tombola at Kuoni head office, Christine is bringing up at present are already her second generation. with proceeds going to the SOS Children’s Village Her first generation has already grown up and Christine remains June 00 The Kuoni Home in Gopalpur, India is opened in close contact with them all. They include a lawyer, a nurse and a EXECUTIVE AND CORPORATE BODIES 87

Board of Directors of Kuoni Travel Holding Ltd.

Daniel Affolter, Chairman Born 1954 Lawyer, Erlenbach Studied law (lic.iur.) at Zurich University 1984 Qualified as lawyer Since 1988, partner in the law practice “Bernhard, Affolter und Partner” in Uster 1990 Elected to the Board of Directors of Kuoni Reisen AG, Zurich 1995 Chairman of the Board of Directors of Kuoni Travel Holding Ltd., Zurich Since 1997 member of the Executive Committee of the World Travel and Tourism Council (WTTC) 1999 International Advisory Council for Tourism (IACT), Singapore Term expires 2000

Heinz Müller, Vice-President Term expires 2002 Former Executive Vice-President UBS, Zurich

Claudia Depuoz Term expires 2002 Senior Vice-President, UTO- Insurance Companies, Zurich

Hans Eisenring Term expires 2002 dipl. Ing. ETH, Zollikofen

Prof. Gilbert Probst Term expires 2002 Professor at the University of Geneva, Hermance

Dr. iur. Roland Rasi Term expires 2001 Lawyer and consultant, Basel 88 EXECUTIVE AND CORPORATE BODIES 89

Executive Board of Kuoni Peter Diethelm Born 1941 Executive Vice-President St. Gallen School of Transport Training at Swissair Strategic Business Unit Travel Holding Ltd. Joined Kuoni in 1962 as Tour Manager United Kingdom and 1966–74 Head of Tour Operating at North America Kuoni United Kingdom Hans Lerch Born 1950 1974–84 Managing Director Kuoni United Kingdom President of the Executive Joined Kuoni in 1970 as Manager Incoming 1972–85 Management functions in Tokyo, In present function since 1984 Board and Chief Executive Hong Kong and Singapore, ultimately Officer as Regional Manager for the Far East Marcel Herter Born 1951 1986–89 Vice-President Incoming, Executive Vice-President Joined Kuoni in 1972 as Manager Incoming Kuoni Reisen AG 1973–74 Kuoni Travel Ltd., England Strategic Business Unit Europe 1989–95 Vice-President Tour Operating, 1974–78 Sales Manager, Kuoni Japan Kuoni Reisen AG 1979–89 Various management functions in 1995 Executive Vice-President Business Travel division SBU Incoming, Kuoni Travel Holding Ltd. 1986–95 Member of the Board of Directors 1996 Executive Vice-President of Business Travel International (BTI) SBU Switzerland and Incoming, 1989 Head of Business Travel division, Kuoni Travel Holding Ltd. Kuoni Reisen AG In present function since 1999 1994 Vice-President Business Travel, Kuoni Reisen AG 1996 Vice-President Retailing, Kuoni Reisen AG from left to right: Hans Lerch, Peter Diethelm, Max E. Katz, Konrad Iten, Reto Bacher, Ibrahim Atallah, Marcel Herter, Thomas Stirnimann In present function since 1999 90 EXECUTIVE AND CORPORATE BODIES 91

Expanded Executive Board Reto Bacher Born 1951 Executive Vice-President Joined Kuoni in 1967 as apprentice Ibrahim Atallah Born in Egypt in 1949 1970–71 Kuoni Travel Ltd., England Strategic Business Unit Senior Vice-President 1974 Graduated in agronomy at the 1971–81 Operational Branch Head University of Alexandria Business Travel 1981–86 Vice-Director General Manage- Strategic Business Unit 1975–78 Sales Manager at ment (non-CH), Kuoni Reisen AG, Zurich Incoming and Asia Naggar Travel Agency in Cairo 1986–96 Managing Director Kuoni Reisen 1979 Joined Kuoni as Sales Representative GmbH, Germany Incoming 1989 Qualified as B.B.A. Bachelor of 1990 General Manager Kuoni Hong Kong Business Administration 1997 Head of Asia/Pacific Kuoni Reisen AG, 1996–98 Vice-President Business Travel, with responsibility for all Asian markets Kuoni Reisen AG including Japan In present function since 1999 In present function since 1999

Max E. Katz Born 1955 Konrad Iten Born 1957 Executive Vice-President HWV Zurich Senior Vice-President 1976 Completed commercial training at 1978 Graduated as business economist Schweizerische Kreditanstalt Chief Financial Officer Chief Information Officer 1978–81 Brand Manager Unilever 1977–79 Bookkeeper/Controller at Breves Treuhand 1981–87 Regional Controller for Jacobs Suchard in several countries 1979 Qualified as bookkeeper/controller 1987–91 Vice-President Finance and 1979–90 Various posts at Phibro Energy Member of Effems AG Executive Board AG, Zug, ultimately as Head of Information Technology 1991–95 Vice-President Finance and Member of Hürlimann Holding AG 1983 Qualified as analyst/programmer Executive Board 1990–93 Managing Director of ITCO In present function since 1995 Informatic AG, Baar 1994 Joined Kuoni as Project Leader Thomas Stirnimann Born 1962 Incoming Executive Vice-President Joined Kuoni in 1978 as apprentice 1995 CFO, CIO and member of Incoming’s 1981–87 Travel Advisor, Kuoni Reisen AG executive management Strategic Business Unit 1987 Purchaser North America 1997 Vice-President Information Technology, Kuoni Reisen AG Switzerland 1989 Product Manager Travac AG In present function since 1999 1991 Head of Sales and Marketing, Kuoni Reisen AG 1994 Head of Overseas division, Kuoni Reisen AG 1995 Head of Tour Operating Department and member of Kuoni Reisen AG’s executive management In present function since 1999 92 EXECUTIVE AND CORPORATE BODIES 93

(Status 15 March 2000) SBU United Kingdom and North America Peter Diethelm Group Staff Units United Kingdom Corporate Communications Regula Weyermann Kuoni Travel Ltd. Peter Diethelm Corporate Development Georg Falkner Tour Operations Sue Biggs Internal Audit Bettina Beck Voyages Jules Verne Philip Morrell Assistant to CEO Chris Linder (Travel Promotions Ltd.)

Finance Max E. Katz Caribbean Controlling René Häsler Kuoni Caribbean Hotels Ltd. Peter Ramrattan Mergers & Acquisitions Stephan Hitz Treasury Alex Tüscher North America Information Technology Konrad Iten Intrav, Inc. Ian Coghlan Chief Technology Officer Werner Lange Clipper Cruise Line Inc. Ian Coghlan Operation François Kunz Development Clemens Gubler Services Nadine Matzinger E-commerce Reto Matzinger

Management of Strategic Business Units

SBU Switzerland Thomas Stirnimann Switzerland Kuoni Reisen AG Thomas Stirnimann Edelweiss Air AG Niklaus Grob Manta Reisen AG Amy Stierli Privat Safaris Reisebüro AG Urs Bellmont PRS AG Hans-Jörg Leuzinger Gianni Moccetti Railtour Suisse SA René Keller Werner Schindler Reisebüro Popularis Rainer Schenkel Rotunda Tours AG Hanspeter Zeier 94 EXECUTIVE AND CORPORATE BODIES 95

SBU Europe Marcel Herter SBU Business Travel Reto Bacher Austria Austria N-U-R Neckermann Reisen AG Franz Erich Tobisch BTI Österreich Dr. Gunther Hölbl Kuoni Veranstaltungs AG BTI Hungary András Rónai Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl Allround Travel International Ges.m.b.H. Michael Manak Germany Restplatzbörse Ges.m.b.H. Paul Kothbauer BTI Euro Lloyd Reto Bacher Operations Walter Worbs Denmark and Participations Alletiders Rejser A/S Poul Erik Madsen Finance Wolfgang Weiss

France Switzerland with Liechtenstein Voyages Kuoni SA Jean-Paul Veslot BTI Kuoni Switzerland Beat Bürer

Hungary Kuoni Utazási Iroda Kft. András Rónai SBU Incoming and Asia Ibrahim Atallah N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi Kuoni Reisen AG (Incoming Section) Ibrahim Atallah

Italy Greece George Georgopoulos Kuoni Gastaldi Tours S.p.A. Ermanno Fici Hellenic Tours S.A. Anastassios Diavatis Hellenic Tours S.A., Heraklion Yiannis Dokos Netherlands Hellenic Island Services Ltd., Rhodos Georg Michalakis Special Traffic (Kuoni Travel Nederland B.V.) Norbert Good Kenya Slovakia Private Safaris (East Africa) Ltd. Alexander Spiro Neckermann Slovakia Martin Horsky Asia Slovenia P&O Travel Ltd., Hong Kong Richard Willis Neckermann Slovenia Tamara Suen P&O Garden City Travel Pte. Ltd., Singapore Kek Yoong Chung P&O Regale Travel Co. Ltd., Bangkok Jumpol Chadavadh Spain P&O Travel Ltd., Beijing Sharon Wu Viajes Kuoni S.A. Daniel Ponzo India Sweden Kuoni Travel (India) Ltd. Ranjit Malkani Allatiders Resor AB Henrik Turen 96 GOOD TO KNOW 97

Edelweiss Air IBU Kuoni’s Swiss charter airline. Subsidiary Independent Business Unit. Business Kuoni Encyclopaedia of the Kuoni Group. The fleet now units of SBU United Kingdom active in consists of three brand-new Airbus niche markets. A320-200 and, in autumn 2000, will be Agent and is also a leading Internet tour ope- expanded by a new Airbus A330-200 to Implant Travel agency operated independently of rator. The Kuoni Group holds a 45% cover long-haul routes. The travel office operated by a business Kuoni that sells Kuoni tours. Designa- stake in the company, with the option of travel operator on the premises of a tion also used for travel agencies which an increase. Far East Travel Centre large corporate customer. represent Kuoni as handling agent at IBU () of SBU UK specialising in ticket the destination. Business Travel International (BTI) sales for flights to the Far East. Incentive Travel Global alliance of business travel opera- IBU () specialising in organising travel tors with an annual turnover of roughly Franchising for corporate employees as a reward for USD 20 billion. BTI consists of 75 natio- Comprehensive service package (e.g. use outstanding performance. nal partners in 80 countries, employs of brand, marketing and product know- around 30,000 people worldwide in over how, IT solutions and training) provided Incoming 3,000 offices and is represented exclu- by the franchisor to the franchisee for a Strategic Business Unit providing ser- sively in each country by a leading fee. vices at a holiday destination. Incoming business travel specialist. Kuoni repre- is made up of the head office in Zurich, sents BTI in Switzerland, Germany, Hellenic Island Services sales outlets overseas and local offices Alletiders Rejser A/S Austria, Hungary and Liechtenstein. Handling agent ( Agent) on Crete and in Europe, as well as the subsidiaries The subsidiary created by the merger Rhodes. A Kuoni Group and Hellenic Hellenic Tours (), Hellenic Island of the three Danish operators Larsen Charter Tours joint venture. Services () and Private Safaris (East Rejser, Simon’s Charterkompagni and Booking the full capacity of a transport Africa) (). Herning Charter, acquired by the Kuoni carrier (full charter) or a part thereof Hellenic Tours S.A. Group in autumn 1998. Alletiders Rejser (partial charter) at the charterer’s own Kuoni subsidiary based in Athens and Intrav A/S is one of the leading companies in risk. Kuoni has its own charter airline in active in the Incoming () sector. US subsidiary acquired by Kuoni in the Danish market and organises leisure Switzerland called Edelweiss Air (). 1999. Specialises in cruises, luxury travel to popular destinations in the Helvetic Tours safaris and exclusive holidays by private Mediterranean and overseas. Clipper Cruise Line Kuoni Switzerland’s brand for budget jet. A subsidiary of Intrav () specialising in holidays. Alternative Distribution luxury cruises. Kuoni and Hugentobler Foundation The direct marketing of tours, e.g. via IATA Principal shareholder of Kuoni Travel the Internet, interactive TV or call Commercial International Air Transport Association. Holding Ltd. in terms of voting rights centres. Travel jargon for business travel (). International organisation of which all (25% of voting rights and 6.25% of major flight companies are members. share capital). Allround Travel International GmbH Cosmos GesmbH (ATI) Tradition-laden Viennese travel agency Kuoni Gastaldi Tours S.p.A. Austrian subsidiary specialising in trips which has been owned by the Kuoni Joint venture based in the Italian city to Asia. Group since April 1999. of Genoa and created in 1998 by the merger of Gastaldi Tours and Kuoni Apollo Resor AB EBITA Viaggi. Kuoni Gastaldi Tours Apollo Resor AB, with headquarters in Earnings before Interest, Taxes and S.p.A. is the number 1 company in Stockholm, is a Swedish tour operator Amortisation of goodwill. Term used in the Italian long-haul market. focused on the mid-price segment. It also accounting for profit before deduction has operations in Denmark and Norway. of financial expense, taxes and amortisa- It runs its own charter company Novair tion of goodwill. 98 GOOD TO KNOW 99

Kuoni Travel Holding Ltd. P&O Restplatzbörse Special Traffic The Kuoni Group’s holding organisa- Peninsular & Oriental Steam Navigation Subsidiary of the Kuoni Group which Official name: Special Traffic (Kuoni tion. Company (P&O Ltd.). Tradition-laden has successfully established itself in the Travel Nederland B.V.). Subsidiary of British company and partner in a 50:50 Austrian market as a specialist in the the Kuoni Group operating in the long- Kuoni Travel India joint venture with the Kuoni Group, sale of last-minute seat capacities. haul sector in the Netherlands. Indian tour operator acquired by the P&O Travel Ltd. Asia, which was fina- Kuoni Group in 1996 and operating lised in 1997 and is headquartered in Retailing Sport Abroad under the SOTC () brand. This move Hong Kong. Travel consulting and the sale of holiday IBU () of SBU United Kingdom specia- made the Kuoni Group India’s biggest travel arrangements ( package tours), lising in tours to special sports events. provider of package holidays abroad. Popularis business travel arrangements and indi- Official name: Reisebüro Popularis. The vidual services from diverse service The Travel Collection Manta Reisen AG Kuoni Group holds the majority share- providers (), such as flights, train and IBU () of SBU United Kingdom specia- Subsidiary (90%) of the Kuoni Group holding (65%), while Coop Switzerland boat rides, rental cars, etc. lising in direct sales. specialising in holidays to the Maldives holds 34% of shares. Popularis is active and diving holidays. in tour operating () under the brand- Rotunda Tours Tour Operating name Coop extra and, with the Helvetic Swiss tour operator acquired in 1995 The core business of a tour operator. It N-U-R Neckermann Reisen AG Tours branches, in retailing () in and specialising in travel to southern consists of selecting and purchasing Company domiciled in Vienna in which Switzerland. Africa. services/products and processing them the Kuoni Group holds a 51% stake. for use in package tours () and tailored The remaining shares are owned by Privat Safaris SBU travel arrangements. N-U-R Touristic GmbH, Frankfurt. Official name: Privat Safaris Reisebüro Strategic Business Unit – organisational Neckermann Utazás Kft. Budapest AG. East Africa specialist and subsidiary units on which the Kuoni group struc- Trade Fairs (Hungary) is a subsidiary of N-U-R of the Kuoni Group. ture is based. IBU () of SBU United Kingdom specia- Neckermann Reisen AG, which also lising in tours to trade fairs. operates in Slovenia and Slovakia. Private Safaris (East Africa) Service provider Subsidiary, domiciled in and operating Entity which provides travel services, TV Travel Shop Package holiday from Nairobi, which services clients e.g. airlines, hotels, 24-hours-a-day British TV channel A holiday combining various services from Europe and overseas. restaurants, etc. Tour selling flight tickets, package tours and (flight, hotel accommodation, coach operators also refer to supplementary products such as travel transportation, local services etc.) and Production them as suppliers. insurance and car hire. Kuoni holds a sold at a total price designated in The purchase of products and services 12.5% stake. advance. combined by the tour operator () to SOS Children’s form travel arrangements. Village Voyages Jules Verne On 18 July 1997 British tour operator Railtour Suisse Kuoni became an Voyages Jules Verne is Official name: Railtour Suisse SA. Rail active partner of a direct sales agent for travel operator of which the Kuoni SOS Children’s Village, the largest pri- up-market tours and beach Group is the majority shareholder (87%). vate humanitarian organisation of its holidays. Kuoni acquired Voyages Jules kind in the world. The aim of the orga- Verne in 1998. nisation is to provide a stable home to children in need and to help them prepare for an independent future.

SOTC Brandname under which Kuoni Travel India operates. 100 ADDRESSES 101

Kuoni Travel Holding Ltd. Asia Kuoni Travel Holding Ltd. Hans Lerch P&O Travel Limited Beijing Sharon Wu Neue Hard 7 President of the Room 1911, Capital Mansion Managing Director CH-8010 Zurich Executive Board, CEO No. 6 Xin Yuan Nan Lu Chaoyang District Phone (+41) 1-277 44 44 Reto Bacher Beijing 100004 P.R.C. Fax (+41) 1-271 52 82 Executive Vice-President SBU Business Travel Phone (+86) 10 6466 4060 and 6466 2145 Marcel Herter Fax (+86) 10 6466 4069 Executive Vice-President SBU Europe P&O Regale Travel Company Jumpol Chadavadh Limited Managing Director Max E. Katz 191/1-2 Sathorn 12 Executive Vice-President (SOI Suksa Viddhaya 2) Chief Financial Officer Bangrak Thomas Stirnimann Bangkok 10500, Thailand Executive Vice-President Phone (+66) 2 635 2450-69 SBU Switzerland Fax (+66) 2 236 0283 Konrad Iten Austria Senior Vice-President Chief Information Officer Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl Kärtner Ring 17 Managing Director Ibrahim Atallah AT-1010 Vienna Senior Vice-President SBU Incoming and Asia Phone (+43) 1-51533-0 Fax (+43) 1-51533-542 Asia Kuoni Reisen Veranstaltungs AG Franz Erich Tobisch P&O Travel Ltd. Richard Willis Lassallestrasse 7a / Cityplex Managing Director Suite 1701, Tower 2 Managing Director AT-1020 Vienna The Gateway Phone (+43) 1-50 202-610 25 Canton Road Fax (+43) 1-50 202-690 Tsim Sha Tsui Kowloon, Hong Kong N-U-R Neckermann Reisen AG Franz Erich Tobisch Lassallestrasse 7a / Cityplex Managing Director Phone (+852) 2956 6888 AT-1020 Vienna Fax (+852) 2956 6789 Phone (+43) 1-50 202-400 P&O Garden City Travel Pte. Ltd. K.Y. Chung Fax (+43) 1-50 202-390 No. 200 Cantonment Road Managing Director #04-05 Southpoint Allround Travel Michael Manak Singapore 089763 International Ges.m.b.H. Managing Director Reisnerstrasse 18 Phone (+65) 224 7730 AT-1030 Vienna Fax (+65) 222 7915 Phone (+43) 1-712 24 666 Fax (+43) 1-713 68 38 102 ADDRESSES 103

Austria Greece Restplatzbörse Ges.m.b.H. Paul Kothbauer Hellenic Tours S.A. George Georgopoulos Mariahilferstrasse 77 Managing Director 23–25 Ermou Street Managing Director AT-1060 Vienna GR-10563 Athens

Phone (+43) 1-58085-0 Phone (+30) 1-3359 700 Fax (+43) 1-58085-999 and 3243 715 Wüstenrot Reiseservice GmbH Wolfgang Amesberger Fax (+30) 1-3234 947 Alpenstrasse 70 and 3227 494 AT-5033 Salzburg Hungary Phone (+43) 662-6386-72 Kuoni Utazási Iroda Kft. András Rónai Fax (+43) 662-6386-740 Báthory utca 19 Managing Director HU-1054 Budapest Denmark Alletiders Rejser A/S Poul Erik Madsen Phone (+36) 1-332 41 16 Kongevejen 155 Managing Director Fax (+36) 1-353 43 50 DK-2830 Virum N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi Dayka Gabor utca 3 Managing Director Phone (+45) 45 83 23 00 HU-1118 Budapest Fax (+45) 45 83 31 00 Phone (+36) 1-319 69 91 France Fax (+36) 1-319 66 96 Voyages Kuoni SA Jean-Paul Veslot 95, rue d’Amsterdam Managing Director India FR-75008 Paris Kuoni Travel (India) Ltd. Ranjit Malkani Vaswani Mansion Chairman and Phone (+33) 1-45 85 71 22 120 Dinshaw Vachha Road Managing Director Fax (+33) 1-42 80 41 85 Opp. K.C. College Germany Churchgate, Mumbay – 400 020 BTI Euro Lloyd GmbH & Co. KG Reto Bacher Phone (+91) 22 2839813/14/17 Neumarkt 35–37 Executive Vice-President Fax (+91) 22 2855840 DE-50667 Cologne SBU Business Travel and Italy Chairman of the Phone (+49) 221-20 280 Executive Board of Kuoni Gastaldi Tours S.p.A. Ermanno Fici Fax (+49) 221-20 281 26 Euro Lloyd Mura di San Chiara 1 Managing Director IT-16128 Genoa

Phone (+39) 010-599 91 Fax (+39) 010-599 9613 104 ADDRESSES 105

Kenya Sweden Private Safaris (East Africa) Ltd. Alexander Spiro Allatiders Resor AB Henrik Tuen Caxton House Managing Director Nedre Långvinkels Gatan 3 Kenyatta Avenue SW-25220 Helsingborg P.O. Box 45205 Phone (+46) 42-1444-00 Nairobi Fax (+46) 42-1444-09 Phone (+254) 2 33 71 15 Fax (+254) 2 33 84 38 Switzerland Kuoni Reisen AG Thomas Stirnimann Netherlands Neue Hard 7 Executive Vice-President Special Traffic Norbert Good CH-8010 Zurich SBU Switzerland (Kuoni Travel Nederland B.V.) Managing Director Phone (+41) 1-277 44 44 Entrada 212–214 Fax (+41) 1-271 52 82 P.O. Box 3370 Edelweiss Air AG Niklaus Grob NL-1001 AD Amsterdam Operations Center Managing Director Phone (+31) 20-398 92 92 P.O.Box Fax (+31) 20-398 92 02 CH-8058 Zurich-Airport

Phone (+41) 1-816 50 60 Slovakia Fax (+41) 1-816 50 61 Neckermann Slovakia Martin Horsky Manta Reisen AG Amy Stierli Panska 23 Treichlerstrasse 10 Managing Director SK-81101 Bratislava 1 CH-8032 Zurich Phone (+421) 7-544 30 981 Phone (+41) 1-268 24 24 Fax (+421) 7-544 30 984 Fax (+41) 1-268 24 74 Slovenia Privat Safaris Reisebüro AG Urs Bellmont Wiesenstrasse 10, P.O.Box Managing Director Neckermann Potovanja Tamara Suen CH-8034 Zurich Traska C. 23 SLO-2000 Maribor Phone (+41) 1-386 46 46 Fax (++41) 1-386 46 47 Phone (+386) 62-300 49 00 Fax (+386) 62-300 49 49 PRS AG Hans-Jörg Leuzinger Seestrasse 127 Gianni Moccetti Spain CH-8700 Kusnacht Managing Directors

Viajes Kuoni, S.A. Daniel Ponzo Phone (++41) 1-914 25 25 Paseo Infanta Isabel, 17 Managing Director Fax (++41) 1-914 25 20 ES-28014 Madrid

Phone (+34) 91-538 27 00 Fax (+34) 91-538 27 27 106 ADDRESSES 107

Switzerland Hotels Railtour Suisse SA René Keller Hawksbill Beach Hotel Peter Ramrattan Chutzenstrasse 24 Werner Schindler Five Islands, P.O. Box 108 Area Manager CH-3000 Berne 17 Managing Directors St. John’s, Antigua W.I.

Phone (+1) 268-462 03 01 Phone (+41) 31-378 00 00 Fax (+1) 268-462 15 15 Fax (+41) 31-378 02 22 Discovery Bay Beach Hotel Peter Ramrattan Reisebüro Popularis Rainer Schenkel Holetown Area Manager Neuengasse 30 Managing Director St. James, Barbados W.I. CH-3001 Berne Phone (+1) 246-432 13 01 Phone (+41) 31-329 43 70 Fax (+1) 246-432 25 53 Fax (+41) 31-329 43 84 Rotunda Tours AG Hanspeter Zeier Incoming Services Wiesenstrasse 10, P.O.Box Managing Director Kuoni Reisen AG Ibrahim Atallah CH-8034 Zurich Incoming Services Senior Vice-President Phone (+41) 1-386 46 66 Überlandstrasse 360 SBU Incoming and Asia Fax (+41) 1-386 46 88 CH-8051 Zurich Phone (+41) 1-325 21 11 United Kingdom Fax (+41) 1-325 23 01 Kuoni Travel Ltd. Peter Diethelm Kuoni House Executive Vice-President GB-Dorking, Surrey RH5 4AZ SBU United Kingdom and North America Phone (+44) 1306 74 08 88 Sue Biggs Sita LONBTSR Managing Director Fax (+44) 1306 74 44 88 Tour Operating Travel Promotions Ltd. Philip Morrell Voyages Jules Verne Managing Director 21, Dorset Square GB-London, NW1 6QG

Phone (+44) 171 616 10 00 Fax (+44) 171 723 86 29

USA Intrav, Inc. Ian Coghlan 7711 Bonhomme Avenue Managing Director, CEO St. Louis, MO 63105

Phone (+1) 314 727-0500 Fax (+1) 314 727-2533