In consideration of the fundamental changes in the industry, the Board of Directors and Group Executive Board have decided to focus the company’s resources on those core activities in which Kuoni already enjoys a leading market position with attractive prospects. Kuoni has therefore decided to exit the tour operating businesses. This exit from the tour operating business includes Kuoni Switzerland, UK, Benelux, Hong Kong/China and India, as well as operations in Scandinavia/Finland.
This affects approximately 3 800 people in total and business that generated turnover of CHF 2.2 billion in 2014. Kuoni firmly believes that the outbound business can be better developed under new ownership, potentially leveraging scale or specific local strengths. Kuoni will seek assurance about the continuation of the existing business locations and the continued employment of staff.
The exit from the tour operating business will not have any impact on customers or their current and future bookings. All units will continue to deliver their expert services to the accustomed standards of quality and reliability. Kuoni intends to find new owners in the course of 2015. Chairman Heinz Karrer said, “Kuoni Group’s new strategic direction will transform the company into a unique, clearly positioned player in the global travel industry. The new group focus will lead to a win-win situation for customers, employees, shareholders and partners alike.”
Peter Meier, CEO, Kuoni added, “We are committed to further developing our core business and to rapidly and sustainably growing our core business as a leading service provider for the global travel industry. We will offer our customers, partners and suppliers attractive and competitive services and solutions that allow them to provide their clients with a smooth travel experience.”
In its new set-up, Kuoni Group will be structured into three divisions, Global Travel Distribution (GTD), Global Travel Services (GTS) and VFS Global. These core businesses already represent around 60 per cent of Kuoni’s current consolidated turnover. In particular, Kuoni will focus on markets with attractive, long-term growth potential such as Asia, the Middle East and Africa.
Its reduced portfolio of activities will enable Kuoni – re-branded as Kuoni Group – to focus on three key strategic initiatives to accelerate growth: invest additional resources in Asia, the Middle East and Africa; focus on enhancing its customer service and increasing efficiency by developing new technology platforms and further digitalising its businesses; and selectively expand its service offering and provide its existing services to a wider range of customer segments by utilising its cross-selling potential.
