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Biz As Usual with Kuoni

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Biz As Usual with Kuoni ITB Berlin, Germany March 4, 2015 Biz as usual with Kuoni New owners can use Asian DMCs eye Kuoni accounts after the big break-up Kuoni brand name By Raini Hamdi we have in the UK, Switzerland By Raini Hamdi a statement saying the UK lead- owner will focus on tour oper- NEW owners of Kuoni’s tour op- and in Asia. For the specialisted CONTRACTING with Kuoni ership team remained in place ating, thus the potential of in- erating businesses can continue brands like Voyage Jules Verne Switzerland, UK, Benelux and “to oversee the process (of the creasing the existing business to operating with the name, which you mentioned, they normally Scandinavia/Finland is continu- sale) and continue the ambitious our Singapore office even if the carries a legacy of more than 100 go with the sale to new owners.” ing as per normal, even as the plans for growth in the UK mar- DMC in the rest of Asia remains years. Voyage Jules Verne is a brand Kuoni Group seeks to sell off ket”. He went on to say Kuoni UK status quo, or the potential of a Kuoni Group’s spokesperson under Kuoni UK, along with these operations and its other would be “working closely with consolidation in ground han- Peter Brun confirmed this when Carrier, Kirker, CV Villas and traditional tour operating busi- our colleagues in Switzerland to dling where the rest of the Tour responding to queries from TTG Journeys of Distinction. Aside nesses in Hong Kong/ make sure we find the East offices will have a chance to Asia-ITB Berlin Daily. from established brands, suitors China and India. right buyers”. pitch for the business on a more Said Brun: “The main brand are also buying its 50-year track Kuoni’s contract man- In the meantime, neutral standing.” ‘Kuoni’ remains with the record, a digital pres- agers from these markets Jones said: “It’s very Exo Travel’s group managing mother company Kuoni ence and 35 Kuoni- are attending all trade- much business as director Hamish Keith shares Group as we continue to branded shops. shows and locking horns usual right now for the sentiment. He said: “We see operate with that name, Asked who the po- with suppliers over rates all our staff and cus- this as a logical continuation of for example, Kuoni Des- tential buyers are at and allotments as usual. tomers. This is the Kuoni selling of its operations in tination Management press time, Brun said: Sellers interviewed also Keith: opportunity busiest time for holi- France and Spain (in the past two and of course Kuoni “We don’t speculate said the announcement by the day bookings and right now our to three years) and welcome their Group (itself). But po- about any potential Kuoni Group that it would exit the focus is on continuing to deliver initiative. Any break-up of large tential buyers of the tour Brun: an buyers. But we are tour operating business would not brilliant holidays and service for travel groups creates an oppor- operating businesses can attractive buy convinced that our impact contracting at all. all customers.” tunity for independent DMCs to license the brand Kuoni from outbound tour operating unit “One has to assume that it Like Jones, hotels and DMCs compete for new business, which Kuoni Group and operate with with its valued brands can be (Kuoni UK, Switzerland, etc) interviewed hoped the new own- is of course welcomed from our that name.” further developed by new own- will be sold as a growing con- ers of these businesses would be point-of-view. Brun added: “That’s why these ers.” cern and that the new owners able to take the business forward, “We also see this as a reaction businesses are so attractive be- To some, however, the an- will have a passion and commit- saying by no means was Kuoni’s to the wider trend, where the cause you can continue like be- nouncement was a double-edged ment to move the business even move a reflection that the future market has moved away from fore with your customers in your sword, as it was akin to Kuoni further forward than where it is of tour operating in Europe was well-organised, fixed travel and B2C interaction.” admitting prospects were better today,” said Chris Bailey, senior dim (see page 2). tours, which Kuoni pioneered Kuoni is seeking buyers for B2B hotel and land whole- vice president sales & marketing DMCs are in fact salivating at and became a leader in, and through the course of this year saling, destination management Centara Hotels & Resorts Thai- the prospects of new accounts shifted towards more personal- for its traditional outbound tour services and visa facilitation than land. these sell-offs may bring. For ised travel provided by highly- operating businesses in Switzer- tour operating. But Bailey did express the res- example, only Tour East Singa- specialised tour operators. land, the UK, Benelux, Scandina- A source said announcing a ervation that the announcement pore now handles Kuoni as the “Hopefully these Kuoni divi- via/Finland, Hong Kong/China sale of a company without a buy- might impact Kuoni staff, how- account in the rest of the region sions will not be bought by one and India. er was demoralising for the staff, ever upbeat the message from the has gone to Asian Trails since the of the big operators but will have Brun explained: “We already and would discourage existing management might be, and that latter was bought by the Kuoni the opportunity to relaunch have such agreements success- and new clients to book and the competition would “cherry Group a few years ago. themselves as small, more inde- fully in place when we sold devalued the company’s image/ pick (Kuoni staff) and/or com- Said Judy Lum, group vice pendent tour operators which Kuoni Austria years ago. Same share value. mercial arrangements”. president sales & marketing, are able to meet the demands of with Kuoni France and Spain But Brun said: “We are a listed Kuoni UK is at pains to soothe Tour East Singapore: “I see more the changing marketplace.” two years ago. If you go to Paris company and have to follow cer- any jangled nerves, with manag- opportunities than threats with – Future lies in being special- you will find beautiful Kuoni re- tain communication rules.” ing director Derek Jones issuing a neutral ownership: the new ists, see page 2 tail stores with the same logo as Continue on page 2 5column (236mm) x 90mm ITB Berlin day1 p01-02 newsFINALrhmyxyfinalfeb12(H).indd 1 13/2/15 3:50 pm 4.3.2015 TTG Show Daily ITB Berlin 2 News Tour operating future exists But it’s only for those who can re-strategise, say trade members, as Kuoni makes an exit By Raini Hamdi you, rather than rushing to an “The tour operator business in Europe will THERE is still a future for tour OTA with the information so operating in Western Europe but they can undercut. by no means pan out. The opposite is the this belief comes with the caveat “The OTAs here in the UK, that the business must evolve in and maybe elsewhere, are very case. Tour operators are expanding their order to handle the disruption tech-savvy and particularly good programmes and are by far still the most caused by the Internet. at selling distressed stock – at- Kuoni’s decision to exit tour tributes not usually associated important partners for the hotels in the operating is by no means a sign with the more established opera- the business is dead, said in- tors.” main holiday destinations.” dustry players, who are also not Asked about the future of the surprised by the announcement, tour operating business, Hotel- Michael Frese given the several restructures plan CEO Thomas Stirnimann CEO of DER Touristik, which operates DERTOUR, Meier’s Weltreisen Kuoni has been making over the said: “We can only say that it is and ADAC-Reisen years in a bid to survive a chang- working out well for us, but you ing marketplace. needed to adapt a couple of years Said a UK operator on the ago. Today there is no more B2B dent sales & marketing of Cen- their business.” condition of anonymity: “Most or B2C business but only busi- tara Hotels & Resorts Thailand Exo Travel’s group of the established conventional ness with which you serve all and a former tour operator, said managing director tour operators – particularly channels.” there’s “absolutely” a future for Hamish Keith added those that are trade-focused – Hotelplan is a potential buyer, tour operating. that the larger players have seen margins come under with Stirnimann in an interview “The big trends are very who are refocusing the pressure primarily from OTAs, after the announcement made by much with the tour operators business to their core mass mar- Tour East Singapore: “Although bed banks and, in many cases, Kuoni saying “we are looking at or, should I say, with travel com- ket customers and giving them technology has changed the dy- hoteliers becoming more ag- it”, when asked if the company panies of all kinds, as there is no a unique, differentiated product namics of the travel industry, it gressive in trying to obtain direct was keen to buy Kuoni Switzer- doubt that people in Europe are will continue to be around. does not serve everyone’s needs. sales. land (TTG Asia e-Daily, January travelling more and farther than “It’s about delivering qual- Travel and holidays are a non- “(However), there is still a 16, 2015).
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