Market Report 2011 - Reporting

Transcription

MARKET REPORT
01_
Outbound Kuoni Europe
Novair
playitas
OUTBOUND EUROPE
Falk Lauritsen Rejser A/S
Helvetic Tours
Outbound Nordic
Kuoni
Apollo
Les Ateliers du Voyage
direkt + ehrlich reisen
GLOBAL TRAVEL SERVICES
reisen tcs
Private Safaris
Kuoni Concierge
FIT
Australian Tours Management
SITA
Octopus.com
Desert Adventures
Kuoni MICE
Groups
Manta Reisen
Distant Frontiers
Frantour + railtour
cotravel
GTA
YourWay2GO
KUONI GROUP
Travel Cube
intens travel
Travel Bound
UTE Megapolus Group
Dorado Latin Tours
Kontiki-Saga Reisen
Koning Aap + Shoestring
Kuoni Tourism Academy
Kirker Holidays
Asian Trails
Journeys of Distinction
AlliedTPro
SOTC Holidays
Voyages Jules Verne
CV Travel & Ski Verbier
EMERGING MARKETS &
Carrier
SPECIALISTS
Emerging Markets
Specialists
VFS Global
01– M A R K E T R E P ORT
Kuoni 勝景遊
KUONI GROUP
The brands of the Kuoni Group
01– M A R K E T R E P ORT
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[ Kuoni Group ]
[ Outbound Europe ]
[ Outbound Kuoni Europe ]
[ Kuoni ]
[ Helvetic Tours ]
[ Les Ateliers du Voyage ]
[ direkt + ehrlich reisen ]
[ reisen tcs ]
[ Kuoni Concierge ]
[ Octopus.com ]
[ Outbound Nordic ]
[ Apollo ]
[ Falk Lauritsen Rejser A/S ]
[ playitas ]
[ Novair ]
[ Global Travel Services ]
[ FIT ]
[ GTA ]
[ Travel Bound ]
[ Travel Cube ]
[ Groups ]
[ Kuoni MICE ]
[ Emerging Markets & Specialists ]
[ Specialists ]
[ Carrier ]
[ CV Travel & Ski Verbier ]
[ Journeys of Distinction ]
[ intens travel ]
[ Voyages Jules Verne ]
[ Kirker Holidays ]
[ YourWay2GO ]
[ cotravel ]
[ Kontiki-Saga Reisen ]
[ Dorado Latin Tours ]
[ Frantour + railtour ]
[ Koning Aap + Shoestring ]
[ Manta Reisen ]
[ Desert Adventures ]
[ Private Safaris ]
[ SITA ]
[ Distant Frontiers ]
[ Australian Tours Management ]
[ Asian Trails ]
[ AlliedTPro ]
[ Emerging Markets ]
[ Kuoni Tourism Academy ]
[ UTE Megapolus Group ]
[ SOTC Holidays ]
[ Kuoni 勝景遊 ]
[ VFS Global ]
KUONI ANNUAL REPORT # 2011
Kuoni Group
01_
Market Report 17
01_00_01_
Kuoni Principles (1) 19
01_00_02_
The Topic of Sophistication 20
01_01_
Communication 22
01_01_01_
Letter to the Shareholders 01_01_02_
Interview CEO 30
01_01_03_
Mission Statement 33
01_01_04_
Key-Figures 2011 36
01_01_05_
Kuoni Share 37
01_02_
The Company 38
01_02_01_
Review 2011 39
01_02_02_
Business Areas 42
01_02_03_
Kuoni’s Group Structure 46
01_02_04_
The Kuoni World Map 56
01_02_05_
Collective Expertise: Our People 60
01_02_06_
Corporate Responsibility 66
01_03_
Business 82
01_03_01_
The New Group Structure 83
01_03_02_
Division Outbound Europe 84
01_03_03_
Division Global Travel Services 96
01_03_04_
Division Emerging Markets
& Specialists 16 | 17
23
106
01_03_05_
kuoni.com 123
01_04_
Appendix 126
01_04_01_
Agenda 2012 127
Kuoni Annual Report # 2011
01_00_01_
Market Report
K u o n i G ROUP
kuoni principles (1)
« A company founded on
utility and benefit knows no good
or bad market situations.
+
Only respectful understanding of
social needs and wants.
=
For these change throughout
history as the company itself
must change.1 »
1
A company whose self-definition
is rooted in the benefit it provides to its
clientele inevitably takes the following view of things: customers cannot
be faulted for buying elsewhere when
the company in question does not happen to have what the customer wants
or needs.
Given the high-frequency global transformation of cultural and economic
factors across the board, human needs
and desires are changing faster than
ever before. As a complex provider of
global mobility services – Kuoni’s declared goal and identity – the company
is shaped entirely by its response to
changes in what constitutes benefits
for a global society whose essence is
increasingly reflected in patterns of
worldwide movements.
01– M a r k e t R e p ort
18 | 19
01_00_02_
Market Report
K u o n i G ROUP
TODAY KUONI IS MORE THAN JUST A TOUR OPERATOR.
■■■
Travel (ling)
Sophist ication.
Practising sophistication.
The heading “Travelling Sophistication” can be read in more ways
than one. To begin with, it indicates
that Kuoni has always lived up to its
founding purpose of fulfilling all individual needs associated with travel. Created in 1906 by Alfred Kuoni
(1874– 1943), the firm had already acquired multinational roots as early as
1920 with branch offices in France and
Italy. Alfred Kuoni was a Swiss visionary who promoted tailor-made services
for individual travellers. He espoused
the ideal of manufacturing customised
travelling portfolios long before anyone
could possibly have imagined the Internet’s potential to launch an age characterised by the fundamental capability
of personalising products and services.
The heading also gives rise to a second
interpretation. Kuoni is constantly
on the road, engaged in an undercover research expedition devoted to
the changing needs of a world society
that now enjoys global mobility. The
firm has gone beyond taking single
measures and has initiated structural
change in response to the requirements
of contemporaries whose geographical
mobility ranges from personal holidays to job-related changes of place.
The term “sophistication” therefore
stands for the following: how changes
in the nature of travellers themselves
are reflected within the fabric of service operations geared towards future
developments. For these travellers are
no longer just tourists; their planning
for travel is also their planning for life.
The present report is devoted to this
transition in the structure of Kuoni.
Contrary to public perception, Kuoni
has long expanded its capacities beyond being a mere tour operator. With
its new structure, Kuoni has now established itself as an integrated provider
of global mobility services. In carrying out this role, the technology-based
building blocks are just as important
as the advisory competence and destination know-how in the interpersonal
communication that has long been the
company’s trademark.
20 | 21
01_01_
Communication
01_01_01_
K u o n i G ROUP
Letter to the Shareholders
■■■
Dear Shareholders
During the 2011 financial year, Kuoni took some important steps in its
ongoing change process. The company invested in the future growth markets, i.e. the geographical regions, but also the business models and the
new technologies that promise significant growth. Kuoni has evolved into
a global and service-oriented provider of travel products. It sells these
products and services directly to customers, but also acts as a business
partner for other companies and their customers; and it does this worldwide, with a particularly strong presence in Asia.
■■■
The changes made during the year were based on several key ele-
ments. The centrepiece was the acquisition of Gullivers Travel Associates
(GTA) in May 2011. Our shareholders’ approval of a capital increase at
the General Meeting in April 2011 provided a substantial part of the
funds required to finance this purchase without compromising Kuoni’s
further development. Following completion of the acquisition, the group’s
organisational structure was adjusted to reflect the new positioning
and weighting of business activities. 2011 also saw the completion of the
group’s three-year investment and cost reduction programme. This
focused on sales initiatives relating to direct customer contact, the
consolidation of IT systems, global brand positioning and the development and promotion of our employees’ knowledge and skills.
■■■
The GTA acquisition represents one of the most important strategic
moves in Kuoni’s history. GTA’s areas of business ideally augment
the successful and growing activities of Kuoni Destination Management
(KDM). Kuoni is now one of the market leaders in the operation of
global online databases for individual travellers who want to book hotel
A company navigating the choppy waters of a change process needs to communicate effectively with all of its
stakeholders all of the time. Kuoni has
set itself the target of providing simple,
clear, comprehensible and well structured information about its thinking,
its work and its results. The Kuoni 2011
Annual Report aims to fulfil this target
for effective communication.
stays, transfers or excursions either at travel agencies, through online
portals or through other tour operators. This type of business is one
of the fastest growing areas of the tourism industry. The group leisure
travel business, which Kuoni has been operating successfully for almost
50 years, was also greatly strengthened by the GTA acquisition.
22 | 23
01_01_01_
K u o n i G ROUP
>>
>>
Kuoni is either the market leader or one of the biggest providers in this
and expanding electronic sales channels throughout Europe. The Global
business area, particularly in numerous Asian countries.
Travel Services Division focuses on the sale of destination travel
services to different tour operators and travel agencies. GTA has been
■■■
With the acquisition of GTA and the merger with our existing desti
integrated into this division. The Emerging Markets & Specialist Division
nation management services, there is now a new balance to the Kuoni
includes the China/Hong Kong, India and Russia source markets,
Group’s activities. Nearly half of all turnover is now generated by
as well as our visa services provider VFS Global, and our autonomous,
this expanded business area. Only about a third is generated by the
entrepreneurially-run specialist travel brands in Europe and in
group’s traditional tour operating business in Europe. Emerging markets
the destinations themselves. The aim of the new structure is to promote
– especially China and India and our visa business that provides
growth in existing and new business areas, to successfully integrate GTA,
administrative services for embassies and consulates – account for nearly
and to run the traditional tour operating business in Europe on a
7% of total group turnover, while the specialist travel brands in both
sustainable and profitable footing. The composition of Group Executive
source markets and holiday destinations contribute 16% to total turno-
Board remains unchanged. In the 2011 annual report, our results are
ver. The Kuoni Group’s new balance clearly reflects the importance
shown in the Financial Report (from page 166) in accordance with the
of the changes that the company made in 2011. Kuoni has repositioned
old group structure. But in the Market Report, we already provide
itself globally, that it can participate in the growth of online travel
details of the divisions’ business areas in line with the new structure
services and emerging markets, while also developing its specialist
(from page 42).
premium travel brands. Meanwhile, Kuoni still owns virtually none of its
own aircraft or hotels as it continues to pursue its “asset light” strategy.
■■■
As successful as the changes Kuoni made in 2011 were, external
events during the year had serious negative impact on tourism.
■■■
The acquisition of GTA in April 2011 was made possible by the
capital increase we asked you to authorise. We were very pleased that a
There was an unusually large number of such events in 2011. At the beginning of the year, people in numerous Arabic countries fought for their
clear majority of shareholders approved the proposal made by the
democratic right to determine their own future. In Egypt and Tunisia in
Board of Directors and the Executive Board. With this approval, you,
particular, revolutions led to a temporary suspension of travel activ-
our valued shareholders, showed farsightedness, authorising your
ity and a massive fall in demand which still has not yet recovered. The
company to raise the finance required to keep Kuoni right at the forefront
severe earthquake and the subsequent tsunami that hit the coast of Japan
of the rapidly changing tourism industry in terms of its strategy, its
caused a nuclear disaster at Fukushima in March 2011: an event that
business model and its growth. Your decision has helped pave the way for
shook the confidence of markets and consumers. The strength of the Swiss
the company’s sustainable development. We would like to thank you
franc against all the major currencies led to a substantial outflow of
very much for supporting us in this way.
bookings over the Swiss border to neighbouring countries. In Europe, the
debt crisis dampened consumer sentiment in many parts of the conti-
■■■
The strategic expansion of business activities also led us to trans-
nent. Strikes in Greece further hampered travel business in this favourite
form the group into three new divisions with effect from October 2011.
holiday destination. The devastating floods that hit parts of Thailand,
The Outbound Europe Division includes the traditional tour operating
and that produced such dramatic pictures, also led to a reduction in
business in Europe, the joint Procurement and Production Unit, and
demand. As these various sad and momentous events unfolded during the
the new Online and Mobile Unit, which is responsible for coordinating
year under review, we became very aware of how grateful and loyal our
24 | 25
01_01_01_
K u o n i G ROUP
>>
>>
customers always were to have a reliable and trustworthy travel company
purchasing and production, which consumers don’t see, have allowed
by their side. Our hardworking employees, with their consistently
an expansion of sales activities and improvements in service quality in
impressive focus on customer needs, obviously played a huge role in
direct customer contact, especially over the internet and through
creating this high level of satisfaction. We would like to thank all
the opening of numerous retail outlets where customers receive personal,
of our employees for their dedication and for their professional and
individualised advice. These agencies’ contemporary style and
fruitful teamwork in 2011.
innovative advisory models are breaking new ground in the travel industry. The image of Kuoni, and its numerous brands, has been overhauled,
■■■
Despite the numerous negative external events, Kuoni Group once
and enjoys great recognition value all over the world. IT systems
again managed to increase earnings significantly in 2011. Turnover
have been harmonised, and the number of different systems reduced.
went up by 28% to CHF 5 111 million. In a difficult environment we
The original goal of introducing a single booking system for tour
achieved very satisfactory organic turnover growth of 1.2%. The fall in the
operating business proved to be too time-consuming and finally not
value of all the major currencies against the Swiss franc had a negative
beneficial given the increasingly rapid pace of change in the market.
impact of – 8.3%. Operating earnings (EBIT) came in at CHF 74.2 million.
Employees have been specially trained in the use of new, state-of-the-art
This represents an increase of 27% on the previous year. The destination
advisory models for direct customer contact, as well as in personal
management business (Destinations Division), VFS Global and our
knowledge and skills development. During the year, local measures were
tour operators in Scandinavia all made a positive contribution to results.
introduced in collaboration with employees after the global employee
Thanks to its advantageous business model, even after acquiring GTA,
survey.
Kuoni was still notable for its strong cash generation ability and for its
solid financial position.
■■■
Nowadays, it is taken as read that we maintain a responsible and
sustainable approach to our business. Over the last ten years, Kuoni
■■■
The Board of Directors is proposing to the Annual General Meeting
has actively anchored its corporate responsibility initiatives in its own
of Shareholders, to be held on 17 April 2012, that it pay a dividend
operations, but has also introduced them to its suppliers. This dual
in the form of a tax-free distribution from the company’s capital reserve.
commitment was energetically affirmed and expanded in 2011. Only
For the 2011 financial year, Kuoni Group is maintaining its long-term
a sustainable and entrepreneurial way of working will create value and
distributions policy. The Board of Directors is recommending to the
facilitate innovation.
Annual General Meeting a payment to shareholders this year of CHF 0.60
per registered share A and CHF 3.00 per registered share B.
■■■
Thank you, our valued shareholders, for your confidence and your
support. You also contributed in the ground-breaking progress Kuoni
■■■
The group’s three-year investment and cost reduction programme
made in 2011. Your company today is healthy, solidly funded and greatly
was completed in 2011. Kuoni’s transformation process formed a
strengthened in the growth and high-potential markets of the travel
major part of this programme, and looking back we can see that the key
world.
objectives were achieved. From a portfolio of semi-independent
companies in the tour operator business we have created a single division
in which markets work with each other across borders and benefit
Henning BoysenPeter Rothwell
from the synergies this creates. Efficiency gains in the area of product
Chairman of the Board of Directors
26 | 27
Chief Executive Officer
Discover the surprise
beyond the horizon.
fig. 1:
An abandoned fortification lost in the dunes of the Grand Erg Occidental just north of Timimoun in Algeria.
28 | 29
01_01_02_
K u o n i G ROUP
Interview CEO
■■■
PETER ROTHWELL, DID YOU ACHIEVE THE GOALS
FOR 2011?
■■■
WOULD YOU LIKE TO SAY GOODBYE TO
TRADITIONAL TOUR OPERATING BUSINESS IN EUROPE?
>>
Interview CEO
In 2011 we significantly expanded our network of outlets.
Asia is home to the biggest growth markets. More and
We are there wherever the customer wants us to be,
more people in Asia can afford to travel. Kuoni started
depending on their specific holiday requirements: on
selling group tours to Europe in Japan 50 years ago,
We have to differentiate between our goals for Kuoni
No. We conduct profitable business in Scandinavia,
Group’s positioning and our financial results. In
Switzerland, France and the United Kingdom. In
the internet, in call centres or in our travel agencies.
strategic terms, Kuoni has finished 2011 in a much
Southern Europe and the Benelux countries we are
■■■
the future of TRAVEL AGENCIES?
and this area of business is very successful throughout
Asia. In 1996 Kuoni entered the Indian market, where
YOU ARE OPENING MORE SHOPS. How do you see
today we are the leading tour operator. We are also
better position. In particular, the acquisition of
making a loss. This is partly due to the economic
Gullivers Travel Associates (GTA), which does such
situation, especially in Italy and Spain, but also to
a high proportion of its business in growth markets,
the way business models are changing. It’s a clear
There will always be travel agencies, but their role
which has greatly expanded our position in the Asian
especially in Asia, marked a major step forward
target to run a sustainably profitable tour operating
is changing. People will always want personal contact
market. The Global Travel Services Division generate
for Kuoni. We also managed to improve our financial
business in Europe.
when trying to sort out their holidays, especially if
around 45% of its turnover in Asia/Pacific, and we are
they are looking for a more sophisticated or complex
also active in China and Hong Kong.
results, and we achieved organic growth too. We
met the expectations of the financial community.
■■■
However, numerous negative external factors stopped
THE EUROPEAN TRAVEL MARKETS?
HAVE YOU MISSED THE INTERNET trend WITHIN
us from recording an even greater improvement in
continuously building up our destination management
activities in Asia. And in 2011 we acquired GTA,
option. In the face of today’s information overload
and lack of time, consumers need and appreciate ex-
■■■
pertise, advice and certainty that holidays are handled
HOLIDAYS IN A DIFFERENT WAY TO EUROPEANS?
DO CUSTOMERS IN ASIAN COUNTRIES BOOK
results. Kuoni is now a larger and better positioned
Kuoni is more active on the internet than ever. We do
trouble-free. Between them, our 12 000 employees
company than a year ago.
business over the internet directly with customers
around the world have an enormous store of knowl-
When Europeans started booking holidays, the new
(B2C) as well as offering global online travel services
edge, and we want to make this expertise available to
technologies obviously didn’t exist; but they are
to tour operators and travel agencies (B2B). Individual
our customers.
available now to people in the Asian markets who are
■■■
YOU ALWAYS EMPHASIsE KUONI’S NEW
making their first holiday plans. This is why the
POSITIONING. WHAT ADVANTAGE DO YOU THINK THIS
bookings, using the databases run by our Global
GIVES YOU OVER OTHER COMPANIES IN THE SAME
Travel Services Division for example, are almost all
MARKET?
made over the internet. In traditional tour operating
TRAVEL AGENCIES, NEW ADVISORY MODELS – HOW did
online access to databases play such an important
business in Scandinavia we sold nearly half of all
this all affect DIRECT CUSTOMER CONTACT IN 2011?
role. Flights, hotels, excursions and restaurants are all
Traditional tour operating business in Europe is under
■■■
EXPANDING INTERNET SERVICES, OPENING
internet and visits to travel agencies with direct
booked individually and directly through databases.
holidays over the internet during the year. In tour oper-
a lot of pressure and growth prospects in this area
ating as a whole, the proportion has risen from
The percentage of the tour operating turnover that we
The consumer might not always know that Kuoni
are limited. A year ago this sector still accounted for
16% to 21% over the last three years. In Switzerland
generated through direct customer contact in 2011
lies behind their booking, but in many cases we play
about 60% of our total turnover. It now only accounts
we became the first company to offer a virtual travel
went up again from 56% to 59%. Thanks to the new
a large role in creating the service in the first place.
for about a third. The acquisition of GTA contributed
agency service with dynamic packaging. In addition,
openings, our own retail outlets increased their share
This B2B business achieved double-digit growth in
to this shift. Business in the high-potential markets
customers can also book package holidays using
significantly from 11% to 13%. Sales made through
2011. Consumers’ booking habits in Europe and North
covered by the Global Travel Services Division and the
mobile devices, like on their smart phones. Our inter-
our call centre accounted for 13%.
America are also moving more in the direction of
Emerging Markets & Specialists Division now accounts
net services have been expanded and are recording
for the majority of our activities. And this is where
rising booking numbers. Simple travel products work
we differentiate ourselves very clearly from our tradi-
well on the internet, while for other, very individual
POSITION IN ASIA. WHY IS ASIA SO IMPORTANT
tional competitors.
holidays where customers need more help and advice,
FOR KUONI?
these activities. We are participating in this worldwide
■■■
KUONI IS ALWAYS EMPHASIsING ITS STRONG
growth, and will continue to do so in future.
our retail outlets are usually a better option.
30 | 31
01_01_02_
01_01_03_
>>
mission statement
Interview CEO
expense and security concerns but also makes things
■■■
TRAVEL BUSINESS WAS A BIG GROWTH DRIVER IN 2011
less stressful for applicants by running modern visa
services company. Kuoni aims to be a trusted partner for people all over
THANKS TO ASIA. WHY IS THIS BUSINESS DOING SO
offices in geographically convenient locations. Issuing
the world – in direct customer contact for holidays, and as a business
■■■
THE GLOBAL TRAVEL SERVICE DIVISION’S GROUP
WELL AFTER 50 YEARS?
When Asian customers take a long trip for the first
K u o n i G ROUP
Kuoni is a leading global travel and destination management
visas always has something to do with travel, but
partner for providers and resellers of destination services. More than
no, there is no direct connection to our other areas of
12 000 employees in more than 60 countries on 5 continents work hard to
business.
realise this aim.
time, they tend to feel more secure and comfortable
travelling in an organised group. Speaking to
■■■
other people in their own language, sharing an interest
IMPACT ON TOURISM. IS IT STILL REALISTIC FOR A
business partners, translating these into contemporary travel
in destinations and themes, and the familiar meals
TRAVEL COMPANY to PLAN FOR THE LONGER TERM?
products. Knowledge, experience and expertise create value. Kuoni
Given how many millions of people are able to afford
This is precisely where Kuoni has a big advantage
innovation, whilst demonstrating a commitment to sustainability
their first foreign holidays and who want to travel
over other companies in the industry. Geographically
and social responsibility. Kuoni aims for the best quality products
within a short period of time to far-off places in an
we have a broad worldwide presence. Our areas of
and services and high customer and employee satisfaction
combined with healthy growth and sustainable profitability.
A LOT OF WORLD EVENTS IN 2011 HAD A NEGATIVE
offered on these group tours play an important role.
■■■
Kuoni knows about the travel requirements of consumers and
tracks markets and social changes. Creating new trends and
efficient way, you can see that the potential is enor-
business are better balanced than ever, Kuoni is in a
mous. However, these consumers will gain the
healthy financial position and we own virtually none
experience and confidence to book their own more
of our own aircraft or hotels. A crisis somewhere in
individual holidays. And Kuoni is well positioned to
the world is unlikely to throw Kuoni off course; we are
offer them hotels, transfers, excursions, city tours
very crisis-hardened. Yes, 2011 was a difficult year:
and other land arrangements. Kuoni has the chance
the Arab revolutions, Fukushima, the European debt
to accompany people all over the world throughout
crisis, natural disasters – all of these things tested
their whole travel lifecycle.
us sorely. But the experience has also helped accelerate
our change process.
■■■
KUONI’S PORTFOLIO ALSO CONTAINS A REAL
JEWEL – VFS GLOBAL BUT WHAT HAS ITS BUSINESS GOT
■■■
WHERE WILL KUONI BE AT THE END OF 2012?
TO DO WITH YOUR CORE COMPETENCE OF TRAVEL?
Over the last three years, and especially in 2011, we
Visa Facilitation Services (VFS) Global was a busi-
have laid the foundations for a sustainable future.
ness idea that came out of our Indian market in 2001.
Kuoni is a different company today. We have the
It supports governments and embassies by taking on
knowledge, the ambition and the innovative power to
and speeding up the administrative processing of visa
continue to expand our new global position. Even
applications and issuance. In 2011 VFS Global again
if events outside the company remain unpredictable,
posted strong growth and very healthy profits. The
we will continue with our transformation process.
company, which has 526 offices in 62 countries, relieves
governmental authorities of a significant workload,
32 | 33
A safe haven
opens up perspectives
on the world.
fig. 2:
Tree-dwelling people in Indonesian New Guinea who had no prior contact outside their language group.
34 | 35
01_01_04_
01_01_05_
keY figures 2011
Kuoni Share
peRfoRmAnce of Kuoni shARe (chf) 2011–2012
■■■■
CHF million
2011
2010
Turnover
Total Northern Region
Scandinavia
UK & Benelux
Total Southern Region
Switzerland
Southern Europe
Asia
Destinations
Corporate
5 111
1 465
958
507
1 386
712
305
370
2 405
0
3 984
1 640
1 045
595
1 468
797
355
316
1 017
0
Earnings before interest and taxes (EBIT)
Total Northern Region
Scandinavia
UK & Benelux
Total Southern Region
Switzerland
Southern Europe
Asia
Destinations
Corporate
74.2
31.4
28.5
2.9
47.8
8.1
– 8.9
48.6
47.6
– 52.6
58.4
52.1
43.9
8.2
46.1
8.3
– 4.4
42.2
21.2
– 61.0
33.3
23.2
Cash flow
Investments in tangible and intangible assets
Total assets
Equity
Equity ratio
101.1
57.2
2 499
775
31.0%
117.0
43.3
1 821
562
30.9%
Kuoni Economic Profit (KEP)
Return on invested capital (ROIC)
– 47.4
3.3%
– 23.3
5.4%
11 048
8 772
Net result
Average number of employees (full-time equivalent)
Kuoni GRoup
500
500
450
450
400
400
350
350
300
300
250
250
200
200
150
SPI
100
Kuoni
150
100
50
50
0
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
CHF
Cash flow
Net result
Equity
Dividend
Stock market prices
per registered share A
per registered share B
Annual trading volume in CHF million
Stock market capitalisation as at 31 December in CHF million
high
low
at year-end
Oct
Nov
Dec
Jan
Feb
2011
2010
5.87
29.33
1.84
9.22
44.43
222.14
0.60 1
3.00 1
439
213
225
839
900
8.15
40.76
1.49
7.43
38.57
192.84
0.50
2.50
459
294
454
787
1 383
1 Proposal of the Board of Directors to the General
Meeting of Shareholders on 17 April 2012. Subject
to approval by the General Meeting of Shareholders.
Distribution to shareholders of a withholding taxfree distribution from the capital reserve.
01– M a r k e t r e p ort
36 | 37
Kuoni AnnuAl RepoRt # 2011
01_02_
The Company
01_02_01_
review 2011
Kuoni releases its third Brand
Report as a feuilleton and as a
part of the Annual Report 2010.
The Mythos Beach Resort
on Rhodes opens its doors
exclusively to Apollo clients.
New ananea programme
published for Kuoni Switzerland
with 21 volunteering projects
to choose from.
January
February
March
April
Kuoni Switzerland launches
its new advisory concept in
100 retail shops with strong
customer focus and the
revolutionary “Travel
Compass” advisory tool.
June
Kuoni UK launches the
first fair trade certified
holiday to South Africa.
Kuoni Switzerland voted most
trusted tour operator for the
eleventh time in a row by the
Reader’s Digest magazine.
Kuoni UK launches the
ananea programme of
sustainable holidays.
May
Kuoni Group posts a clear
improvement in results for the
first nine months of the year,
turnover goes up 26.2% to
CHF 3 809 million.
Kuoni wins “red dot: best of the
best” 2011 design award for its
Annual Report and website
“The Detourist”.
Kuoni presents its 2010
Corporate Responsibility Report.
Kuoni UK launches the new
brand Smart by Kuoni, a
collection of three to four-star
hotels to give customers more
holiday for their money.
Kuoni acquires Swedish luxury
travel company Lime Travel.
K u o n i G ROUP
July
August
September
October
November
December
First flights from our new
market, Finland.
Shareholders agree at Annual
General Meeting in Zurich to the
creation of authorised capital.
The Board of Directors were thus
able to increase share capital
by approx. CHF 250 million to
refinance the acquisition of GTA.
Kuoni Switzerland is the first big
travel company to receive the
CSR certification from TourCert
for sustainability and corporate
responsibility in tourism.
Kuoni completes
acquisition of GTA.
Kuoni India’s new head
office opens in Mumbai.
Kuoni successfully completes a
CHF 257 million rights offering.
New hotel portal
apollohotels.no is
launched in Norway.
VFS Global opens its 500th
Visa Application Centre in
Lviv, Ukraine, for the Polish
government.
Half year results 2011: In a
difficult environment the Kuoni
Group increases its turnover for
the first half of 2011 by almost
19% to CHF 2 084 million.
Kuoni Group posts clearly
improved results in the 2010
financial year, its turnover
increases 2.3% to CHF 3 984
million.
Kuoni Destination
Management launches
its new website:
www.kuoni-dmc.com.
Kuoni announces the acquisition
of Gullivers Travel Associates
(GTA). GTA is one of the world’s
leading providers of online
destination management
services.
The Kuoni Group announces
its new group structure. It
consists of the three divisions
Outbound Europe, Global Travel
Services and Emerging Markets
& Specialists.
Kuoni Destination
Management is voted
2011’s “World’s
Leading Destination
Management
Company” by the
World Travel Awards
for the second
consecutive year.
Octopus.com offers hotels
for the first time in the UK on
kuonihotels.com.
38 | 39
A journey into the past
tells us of our own future.
fig. 3:
Over 2000 years old, Iran’s mud-brick city of Arg-e Bam three weeks before an earthquake destroyed it.
40 | 41
01_02_02_
K u o n i G ROUP
Business Areas
■■■
Kuoni Group’s business activities are divided in five distinct main
>>
Business Areas
this business. Destination management travel services also include the
areas: the traditional tour operating business, destination manage-
group holiday business operated on behalf of holiday companies and
ment travel services, specialist travel business, operations in Emerging
travel agencies. Kuoni is one of the world’s largest providers of such holi-
Markets and the visa services supplied by VFS Global. These areas are
days, particularly in Asia. All of these business areas are grouped
structured into three divisions in the new group organisation: Outbound
into the Global Travel Services Division. This division contributes 41%
Europe, Global Travel Services and Emerging Markets & Specialists.
(annualised) of Kuoni Group’s total turnover.
MICE = Meetings, Incentives, Conferences, Events. The MICE unit works for
companies, organisations and institutions, organising conferences, congresses, trade fairs and holidays that
are offered as part of a bonus/incentive scheme.
Kuoni owns hardly any of its own aircraft or hotels and pursues an “asset
light” strategy.
■■■
The Emerging Markets & Specialists Division includes Kuoni’s tour
operator activities in India, China/Hong Kong and Russia. The independMost products in the traditional tour
operating business are sold through
direct customer contact (B2C). The proportion of indirect sales through external travel agencies and other external
channels (B2B) is falling as direct customer business increases.
The Outbound Europe Division consists of the Outbound Nordic Unit,
which covers the Scandinavian and
Finnish markets, and Outbound Kuoni
Europe, which covers all the other
European markets.
See Outbound Europe Division, from
page 84.
■■■
The traditional tour operating business includes activities in the
ent specialist travel brands in the division include the European tour
following European markets: Scandinavia (including Finland), United
operators (outbound specialists) in Switzerland, the United Kingdom and
Kingdom, Benelux (Netherlands and Belgium), Switzerland, France, Italy
the Netherlands/Belgium, as well as our dedicated local specialist com-
and Spain. The product portfolio is divided into package holidays and
panies based in the holiday destinations themselves (inbound specialists)
premium individual holidays, which are often tailored to the individual
in Asia, Australia, Africa, the Middle East, India and North America.
customer’s requirements. Package holidays are sold in the Nordic and
These specialist business activities account for 16% of the Kuoni Group’s
Switzerland markets. Individually arranged holidays are available in the
turnover. The Emerging Markets contribute 4%.
The Emerging Markets & Specialists
Division brings together the Emerging
Markets business, the outbound and
inbound specialists, and VFS Global’s
visa services business.
United Kingdom, Benelux, France, Switzerland, Italy and Spain. Dis
VFS Global is also part of the Emerging Markets & Specialists Divi
tribution channels vary depending on the market and product portfolio,
■■■
but include Kuoni’s own retail outlets, external travel agencies, the
sion. This business offers visa services and helps governments and embas-
internet, mobile apps, personal mobile travel consultants and call centres.
sies to process travellers’ visa applications securely and efficiently. The
Most products (59%) in the traditional tour operating business are
authorities outsource the administrative tasks involved to VFS Global. Its
sold through direct customer contact (B2C). As a proportion of the Kuoni
support work allows the relevant authorities to make decisions about
Group’s total turnover, traditional tour operating business accounts
issuing visas more efficently. VFS Global currently contributes 3% of group
for 36% (annualised), of which 17% is generated in Scandinavia. These
turnover.
VFS Global was launched in the Indian
market in 2001 and continues to grow
strongly. By the end of 2011, VFS Global
was operating 526 offices in 62 countries for 37 governments and embassies.
business activities are grouped into the Outbound Europe Division.
■■■
Kuoni’s destination management travel services make up a global
Destination management travel services are purchased from local service
providers and hotels (B2B) and then
sold to tour operators, travel agencies
and online booking sites.
business sector that is particularly well positioned in Asia, Europe,
Global Travel Services Division divides
its activities into FIT (Fully Indepen
dent Traveller) and Groups/MICE.
which can be booked easily, quickly and at attractive prices online. This
Middle East and North America. These services are purchased from and
sold to business partners (B2B). They include land arrangements such
as hotel stays, transfers, excursions and restaurant reservations, all of
destination management services business is currently one of the fastest
growing areas within the tourism industry. With the acquisition of
GTA in May 2011, Kuoni became one of the leading global providers in
42 | 43
Accessibility must
not deprive the remote
of its colours.
fig. 4:
The road through China’s Taklimakan Desert is protected from sandstorms by a green belt of salt-tolerant plants.
44 | 45
01_02_03_
K u o n i G ROUP
Kuoni’s group structure
Human Resources
Outbound Europe
Alexander Brochier
Leif Vase Larsen
>>
Outbound
Nordic
Outbound
Kuoni Europe
1
2
Kuoni’s Group Structure
■■■
Board of Directors
■■■
Henning Boysen
Henning Boysen has been a member of Kuoni’s Board of Directors since
2003. In 2006, the Board elected Mr. Boysen, a Dane, to be its chairman.
After graduating with a Masters in Economics, Henning Boysen began
Group IT
his career as a management consultant at Booz, Allan & Hamilton. In
Stuart Walters
1975 he joined SAS Service Partner as a project manager before going
FIT
on to the posts of Chief Financial Officer and then Executive Vice-Presi
Global Travel
Services
Corporate
Communications
Rolf Schafroth
dent Catering. After stints as Chief Operating Officer (COO) of Saudia
Catering and President of Aero-Chef A/S, he served as President and
Groups
MICE
CEO of Gate Gourmet International from 1996 to 2004, and as Deputy
Peter Brun
3
Specialists
Global Branding
& Marketing
Remo Masala
of the Kuoni-Group. Chairman of
the Board of Directors of Global Blue,
Nyon; Chairman of the Board of
Directors of APODAN NORDIC AS,
Copenhagen; Member of the Board of
Directors Flexpack AS, Copenhagen;
Member of the Board of Directors of
Transcom Worldwide SA, Luxembourg;
Member of the Advisory Board of the
Ecole hôtelière de Lausanne (EHL),
Lausanne. Current term expires in
2012.
Chairman from 2004 to 2005. During this period as President and CEO,
CEO
Peter Rothwell
01_02_03_01_
Emerging Markets
& Specialists
Stefan Leser
Gate Gourmet grew from a medium sized European company to become
a leading global player.
■■■
Emerging
Markets
Wolfgang Beeser
4
Tourism specialist and industrial economist Wolfgang Beeser, a German
national, served as CEO of Thomas Cook AG from January 2004 to the
Corporate & Business
Development
end of 2005, and can draw on 40 years of experience in the tourism sector.
VFS Global
Lucio Pompeo
He embarked on his tourism career with Neckermann Reisen in 1967.
Chairman of the Board of Directors of
DAMARE S.R.L., Milan; Member of the
Board of Directors of Iberostar Holding, Palma de Mallorca. Current term
expires in 2013.
Ten years later he assumed responsibility for Neckermann’s global pro
curement of hotel capacities. In 1994 he was named CEO of the company,
now renamed NUR Touristic. From 1997 to 1999 he headed the Thomas
■■■■
Executive Board
Corporate
Responsibility
Finance
Risk
Management
Cook Group, which was then still known as C & N Touristic, as a
Matthias Leisinger
Peter Meier
Serap Ayhan
of Directors in 2002, but stepped down at the end of 2003 after being
Member of Executive Management. He was elected to the Kuoni Board
appointed CEO of Thomas Cook AG. He then returned to Kuoni’s Board
in 2007 as its Vice-Chairman.
1
2
3
4
Sweden · Norway · Denmark · Finland · Novair · Playitas
Switzerland · United Kingdom · France · Italy · Spain · Benelux · Procurement & Production Unit · Online & Mobile Unit
Tour Operating Specialists · Destination Management Specialists
India · Hong Kong /China · Russia
As of 1 March 2012
46 | 47
01_02_03_
K u o n i G ROUP
>>
■■■
CEO of A xpo Holding AG, Baden;
of Elektrizitäts-Gesellschaft Laufenburg AG, Dietikon; Chairman of the
Board of Directors of Axpo AG, Baden;
of Centralschweizerische Kraftwerke
AG, Lucerne; Member of the Board of
Directors of Resun AG, Aarau; Member
of the Board of Directors of Swissgrid
AG, Laufenburg. Current term expires
in 2014.
Heinz Karrer
Heinz Karrer, who is a Swiss national, has been CEO of Axpo Holding AG,
>>
■■■
David Schnell
Kuoni’s Board of Directors has benefited from the great expertise and
Switzerland’s leading energy company, since 2002. After studying
experience of Swiss business administration graduate David Schnell since
economics at St. Gallen University (HSG), he began his career in 1985
2002. Between 1985 and 1997 he worked at ELCO Looser Holding AG,
when he was appointed General Manager of the Association of Swiss
initially as Chief Financial Officer (CFO) and Member of the Executive
Manufacturers, Suppliers and Agents for Sports Goods. He went on to
Board, and later as Chief Operating Officer (COO) and Member of
serve as Managing Director of Intersport Schweiz AG from 1987 to
the Board of Directors. In 1997 David Schnell moved to become CFO and
1992 and as CEO of Intersport Holding AG from 1992 to 1995. He then
Member of the Executive Board of telecommunications company
moved to the Ringier publishing house where he remained until 1997,
Swisscom AG in Bern, where he stayed until 2002. Since 2002 David
becoming CEO of Ringier Switzerland and a member of Ringier Ltd.’s
Schnell has been an independent business consultant and a Member of
Group Executive Management. From 1998 to 2002 he was a member
the Board of Directors of various companies.
Business Consultant; Member of the
Board of Trustees of the Kuoni- and
Hugentobler-Foundation, Zurich;
Chairman of the Board of Directors of
IFBC AG, Zurich; Vice-Chairman of the
Board of Directors of ELMA Electronic
AG, Wetzikon; Member of the Board of
Directors of AlpTransit Gotthard AG,
Lucerne; Member of the Sanction Commission of the SIX Swiss Exchange AG,
Zurich. Current term expires in 2012.
of Swisscom’s Group Executive Management and head of the group’s
Marketing & Sales Division. He has served on Kuoni’s Board of Directors
■■■
Annette Schömmel
since 2007.
Annette Schömmel – Swiss and German citizen – is an successful entrepre
■■■
John Lindquist
neur. She received a degree in Economics from Ruprecht Karls University
in Heidelberg and a Masters Degree in Marketing and Communication
Senior Advisor, Boston Consulting
Group, London; Member of the Board
of Directors of VisitBritain, London.
Current term expires in 2014.
John Lindquist, a US and UK citizen, is resident in London. He gained a
from University of the Arts, Berlin. She is a Stanford Business School
degree in economics from Princeton University and MBA from Harvard
Graduate. After working in various management positions in the creative
University and then joined The Boston Consulting Group (BCG) as a con-
industry, she founded arthesia – an applied think-tank based in Zurich
sultant. He was subsequently elected a Partner and later a Senior Partner
and Los Angeles – in 1994. Annette Schömmel has built a track record
and Managing Director, where he served on the global leadership team
advising the leadership of global companies and brands on strategy,
of the travel and tourism practice. He is currently a Senior Adviser with
transformation and change programs as well as long-term positioning
BCG, advising on strategy for clients in airlines, hotels, and government
and re-positioning in various industries. She has built the arthesia
tourism bodies on a global basis. He joined Kuoni’s Board of Directors in
cities business and currently advises cities around the world on strategy.
2007. He is a Board Director of VisitBritain, the UK government tourism
She joined the Kuoni board in 2004.
Founder and Vice-Chairman of the
Board of Directors of arthesia AG,
Zurich and Los Angeles; Managing
Director of arthesia AG, Zurich and Los
Angeles. Current term expires in 2013.
promotion agency.
48 | 49
01_02_03_
K u o n i G ROUP
>>
■■■
Member of the Institution of Electrical
Engineers (MIEE), London; Member
of the Board of Directors of Pegasus
Airlines, Istanbul; Member of the
Advisory Board of the Stanford Sloan
Master’s Programme, California; Fellow of the Royal Aeronautical Society
(FRAeSoc), London. Current term expires in 2013.
Raymond Webster
Raymond D. Webster, who is a citizen of New Zealand and resident in the
>>
■■■
kuoni’s group Executive Board
■■■
Peter Rothwell, Chief Executive Officer; British, born in 1959.
01_02_03_02_
United Kingdom, joined Kuoni’s Board of Directors in 2006. He worked
for easyJet airline plc. from 1996 to 2005 – from 2000 as Chief Executive
After studying languages at Oxford University (UK), in 1982 Peter Rothwell
Officer. Before that he was with Air New Zealand in various functions,
embarked on an executive career that took him through marketing,
the last one being General Manager, Strategic Planning. He studied engi-
product management, purchasing and sales at several British based travel
neering at Canterbury University in New Zealand and obtained an
companies. He became Managing Director of Airtours Holidays in 1995,
MSc in Air Transport Engineering from the Cranfield Institute of Techno-
then CEO of Airtours UK Leisure Group in 1998 and member of the PLC
logy in the UK, as well as a Master of Business Management from
board. Peter Rothwell later served as COO at Thomson Travel Group and
Stanford Business School in the USA.
as CEO of TUI Northern Europe, where he also took over as Managing
Director of TUI UK in 2004. He was appointed COO and Member of the
Board of TUI AG Tourism (Hannover) in 2006, from where he moved to
become Deputy Chief Executive of TUI Travel PLC (London), following
the merger with First Choice in 2007. Peter Rothwell became CEO of the
Kuoni Group on 1 January 2009.
■■■
Peter Meier, Chief Financial Officer; Swiss, born in 1965.
After earning a university of applied sciences degree in business admini
stration, Peter Meier worked for Sulzer from 1992 in Switzerland and
abroad. His roles included Head of Finance and Controlling at the Sulzer
Chemtech and Sulzer Metco divisions. At the start of 2007, having gained
much experience as a financial expert, he was appointed Chief Financial
Officer (CFO) of the Sulzer Group and joined the group’s Executive Board.
Peter Meier is a Swiss certified accounting and controlling expert and
has an MBA from the State University of New York. He also successfully
completed the Advanced Management Program at Wharton School of
Pennsylvania (USA). Peter Meier became CFO and Member of the Group
Executive Board of the Kuoni Group on 1 December 2010.
50 | 51
01_02_03_
K u o n i G ROUP
>>
■■■
Leif Vase Larsen, Executive Vice President, Outbound Europe; CEO
>>
■■■
Rolf Schafroth, Executive Vice President, CEO Global Travel Services
Outbound Europe and Kuoni Switzerland; Danish, born in 1963.
Division; Swiss, born in 1965.
After completing an apprenticeship with Maersk Line and graduating
After earning a university of applied sciences degree in business eco
from Copenhagen Business School, Leif Vase Larsen embarked on his
nomics, Rolf Schafroth joined Coopers & Lybrand and went on to serve as
professional career in 1986 as financial analyst at Bull A/S. From 1990 to
a management consultant in Switzerland and the UK. Later he moved
1999 he held various Controlling and Financial Management functions
to Deloitte & Touche, Switzerland, to perform the same function. In
at the shipping company DFDS. In 2007 he completed an Executive MBA
1996 he joined Kuoni Switzerland as Head of Financial Controlling;
at the University of Stockholm. Leif Vase Larsen has been with Kuoni
and after just one year, in 1997, he was named Head of Finance & IT for
Nordic since the start. During the first seven years he served as Financial
Kuoni’s Incoming Strategic Business Unit. In 2003 he assumed overall
Director and since 2006 as CEO. In 2009 he was appointed Executive
responsibility for Incoming Europe, the Kuoni Group’s biggest incoming
Vice President for Northern Region and at the same time became a mem-
unit; and in 2006 he was named CEO of Destination Management, a new
ber of the Group Executive Board. As per October 1, 2011, with Kuoni’s
entity comprising all the Kuoni Group’s former incoming units. In 2007
updated corporate structure, Leif Vase Larsen leads the Outbound
he was appointed to the Group Executive Board as Head of the Strategic
Europe Division (Tour Operating Europe) as well as Kuoni Switzerland.
Business Division Destination Management. Following the restructuring of the Kuoni Group in 2009, Rolf Schafroth became Executive Vice
■■■
Stefan Leser, Executive Vice President, CEO Emerging Markets &
Specialists; German, born in 1967.
President Procurement & Production, while continuing as CEO Desti
nation Management. Following the acquisition of Gullivers Travel
Associates (GTA) in May 2011, he is now CEO Global Travel Services
Having graduated in business administration, Stefan Leser initially held
Division, which emerged from the integration of GTA.
a number of functions at various companies in the German travel sector. After completing an MBA in finance and strategic management at
Augusta State University of Georgia, USA, he joined Atraxis AG in 1999
as Executive Vice President Business Development, Marketing & Sales.
He later moved to EDS, going on to become CEO of EDS Switzerland
AG and Head of Sales & Distribution for Central and Eastern Europe.
He joined Kuoni in 2005 as a member of the Group Executive Board,
in the newly-created position of Executive Vice President Corporate
Development. He assumed additional responsibility for the unit Scandi
navia in 2006. In 2007 he was appointed Head of Strategic Business
Division Smart and CEO of Kuoni Switzerland. As part of the restructuring of the Kuoni Group in 2009, Stefan Leser was appointed Executive
Vice President Southern Region. With Kuoni’s updated corporate structure he became CEO of the Emerging Markets & Specialists Division on
October 1, 2011.
52 | 53
Holidays are the oasis
amid the expanse of daily life.
fig. 5:
Waw al Namus, a dormant but windswept volcano in southern Libya bordered by a chain of spring waters.
54 | 55
01_02_04_
the kuoni world map
Kuoni’s head office is located in Zurich, Switzerland, where Alfred Kuoni
founded the company in 1906. Over
the years Kuoni has developed into today’s global travel services company,
now employing around 12 0 00 people
in more than 60 countries. In its European source markets the company
has more than 160 of its own retail
outlets and tour operating offices. Its
global destination travel services business has several different types of office: sales offices in the source markets, particularly in Asia for group
travel business; agency offices that look
>>
The Kuoni World Map
after guests at the destinations; offices
dedicated to buying in and selling
online-based destination services; and
offices specialising in MICE business
(meetings, incentives, conferences
56 | 57
and events). Visa services provider
VFS Global (external consular services) runs a worldwide business through
more than 500 offices spread across
every continent. Overall, counting all
business activities, Kuoni has more
than 700 offices in 62 countries around
the world.
The world shows us
what was done and
what will have to be done.
fig. 6:
Terraced fields of tea being picked near Dadugang in the Chinese province of Yunnan, the area famous for its Pu’er tea.
58 | 59
01_02_05_
Kuoni GRoup
ColleCTive experTiSe: our people
Kuoni’s employee survey scored a
response rate of 71%.
Kuoni’s worldwide workforce numbered 12 104 at the end of 2011 (fulltime equivalents). This is 22% higher
than the year before (2010: 9 048 fulltime equivalents).
“We all live and love the travel business.” This was the internal slogan
>
Collective Expertise: Our People
■■■■
Recognition of its people is another area where employees saw room
used for the purchase of destination management services provider GTA
for improvement. As a result, a Recognition tool-kit providing infor-
in 2011, Kuoni’s biggest ever acquisition. It was also one of the many
mation, tips and tools has been launched to help managers practise good
positive reactions given in Kuoni’s first ever global employee survey, which
leadership and show the necessary appreciation on a daily basis. The
was conducted in nine languages and various cultures at the end of
tool-kit is based on the four principles of good daily leadership practices:
2010 / beginning of 2011. Employees were given the opportunity to give
Feedback, Coaching, Individual Recognition and Team Recognition. In
detailed feedback on their working environment, their colleagues, the
2011 it was cascaded and implemented through the divisional HR organi-
company’s management, the work processes used at Kuoni, and their own
sations in the different units.
level of satisfaction with their current job.
■■■■
■■■■
The majority of employees who delivered detailed information about
The Kuoni Corporate Academy has been set up to address the third
focus topic, Learning & Developing/Career Opportunities. The Academy
their level of satisfaction view Kuoni as an inspirational company. They
is Kuoni’s global training and developing framework, readying people
would recommend it to friends and acquaintances and they very much
for management roles, supporting managers in their efforts to build strong
appreciate working together with their Kuoni colleagues. All of this input
performance and enhancing their ability to drive strategy.
and the finalised results were presented to staff and management in
In addition, Kuoni Switzerland, which belongs to the Outbound
early 2011. The feedback not only helped Kuoni identify its strengths and
■■■■
weaknesses more accurately and to optimise its efficiency, but also
Europe Division, has committed to be the industry’s largest training com-
enabled each management team to define and implement concrete follow
pany for apprentices in Switzerland. The so-called “Trainee Navigator”,
up measures. The resulting focus topics subsequently defined and
an innovative and integrated programme for the development of appren-
supported by HR for the whole group are: Communication, Recognition,
tices, was set up in 2009. During the three-year apprenticeship, methods
Learning & Developing and Career Opportunities.
such as e-learning, classroom learning, case studying and coaching are
■■■■
Kuoni CoRpoRAte ACAdemy
Strategic leadership skills, building
managerial and organisational capa
bilities, and building individual and
team capacities are among the training
modules offered. Full descriptions of
all courses can be found on the Kuoni
intranet, along with a form for direct
enrolment. During 2011, more than
40 training courses were conducted in
Scandinavia, the UK, Switzerland, In
dia and elsewhere, providing our peo
ple with exceptional skills to do their
jobs at the most professional level.
applied in order to enrich the curriculum with industry knowledge and
Under “Communication”, activities include regular updates from
sales know-how. The programme has proved successful: the graduates of
the Senior Executives using a variety of channels, such as town hall events,
Kuoni Switzerland achieve in 2011 the best grades in the industry. Within
discussions and “CEO round tables”. In an effort to increase employees’
the course of the HR transformation project which took place in 2011,
access to and interaction with management, Group CEO Peter Rothwell
the whole retail sales organisation in Switzerland was transformed from
and members of the Executive Board travel to units anywhere in the
a product-oriented department into a sales-oriented organisation with
world on a frequent basis. These dialogues have received very positive
a focus on customer needs. In addition, new sales roles (Travel Consultant,
feedback; they have helped strengthen and deepen the relationship with
Travel Expert and Customer Advisor), sales skills, bonus systems and
the senior management and will continue to do so in 2012.
management structures were implemented. All sales managers were trai-
■■■■
ned to develop high-performance teams in line with these new elements.
Today’s standardised sales organisation is enabling Kuoni to focus
as much as possible on customers, work more cost-effectively, guarantee
quality and facilitate an increase in sales.
01– m A R K e t R e p oRt
60 | 61
01_02_05_
K u o n i G ROUP
>>
■■■
The initegration questionnaire focused
on the specific areas most connected
to the work done, and addressed any
improvements needed with regard
to the integration process. The survey also showed that employees did
not feel distracted by the integration
planning and activities, and that they
felt very positive and ambitious about
future collaboration. It was apparent
that there was a big need for clarity
about the new vision and structure,
and internal communication was appreciated.
Numerous activities associated with the acquisition of GTA were
>>
available. Consequently, VFS Global puts an emphasis on its talent
carried out in two phases. Phase 1 – pre-acquisition: a joint team of
management, offering ongoing internal educational and management
GTA and Kuoni employees prepared everything needed for the day of the
development programmes in order to train the best and develop further
announcement and the time immediately afterwards: announcements
skills. In addition to normal classroom training courses, more and more
and webcasts from the leadership teams, a welcome booklet for all staff,
online training sessions are being conducted. Thanks to its excellent
dedicated intranet pages, as well as town-hall sessions and roadshows in
internal training VFS Global is renowned for having knowledgeable and
Tokyo, Dubai, London and Zurich. In phase 2 an integration programme
experienced employees. Although fluctuation is very low, VFS Global
was launched within the Destinations division (today: Global Travel
used various HR tools and processes in 2011 to identify future leaders.
Services (GTS) Division). The aim was to ensure that the talented travel
These people are then helped by rotation programmes through appropriate
professionals at both Kuoni and GTA were kept up-to-date about the on-
internal roles to gain further experience and knowledge. However,
going integration. Task forces were formed to identify collaboration and
strong growth means that the company also recruits a lot of external
integration opportunities, as well as to learn about the two companies'
talent. Compensation and benefits have been developed to offer attractive
processes and policies. A sharp focus was always kept on transparency so
expat benefits and to ensure that the company always compares
that similarities and differences could be identified properly. Care was
well to other local businesses seeking to recruit newly qualified staff.
taken from the outset to make the best possible use of synergies. An inteThe measures summarised here that were taken in the Human
gration employee survey was conducted in November 2011. All employees
■■■
whose roles changed due to integration measures were informed in
Resources field in 2011 will continue to ensure in coming years that Kuoni’s
stages by 31 December 2011 at the latest, and transitioned to the inte-
employees include the most talented specialists in the industry as well
grated structure.
as outstanding managers.
■■■
At VFS Global and Kuoni India, which are both part of the Emerging
Markets & Specialists Division, in 2011 a lot of hard work was invested
in the further development of globally applicable HR rules and standardised
processes. Kuoni India also launched an initiative to encourage even
greater commitment among employees, as well as a management model
for the four-stage employee lifecycle HIAR (“Hire – Aspire – Admire –
Retire”). A skills gap analysis across various management levels was
carried out on the basis of our competence model and an external
benchmark; various measures were introduced to ensure future implemen
tation of the strategy from the HR side. The aim is to keep employees
engaged, to improve productivity and to drive people’s transition from
one role to the next. The skills map, which was tracked through a series of
touch points, helps the HR team clarify stages and responsibilities more
effectively, as well as close any gaps. In the fast growing travel market
in India, there is a huge demand for talent, but this talent is not readily
62 | 63
Revelling in the
wonder of disbelief.
fig. 7:
Aerial views of vertically oriented sandstone formations in Kuqa Canyon, upstream from Kuqa, Xinjiang, China.
64 | 65
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Corporate Responsibility
In this Corporate Responsibility (CR)
chapter, covering the reporting period
2011, we brief our stakeholders and interested parties on how Kuoni addres
ses and improves the sustainability of
its business.
This is the fourth official communication on CR of the Kuoni Group, the
last version of which was printed for
the 2010 annual reporting period. All
Corporate Responsibility reporting,
key performance indicators and online
content are based on the latest internationally recognised guidelines of the
Global Reporting Initiative (GRI-G3).
The aim of this chapter in the Kuoni
Annual Report 2011 is to inform our
stakeholders (employees, customers,
shareholders and investors, suppliers, the media and the public) about
our CR activities. This information is
meant to brief the reader on the latest updates in the CR strategy, focus
areas and initiatives as well as future
goals and current performance. The
content is kept as succint as possible,
highlighting only the latest progress
in 2011. Further details on projects not
covered in this chapter are found online at www.kuoni.com
Additionally, information on how sustainability is integrated in individual
operating units of the Kuoni Group is
found throughout this report.
Finding a balance between financial success, social responsibility and
>>
K u o n i G ROUP
■■■
STANDARDS AND CODES OF CONDUCT
■■■
The Kuoni Code of Conduct
protecting the environment – this fundamental approach lies at the heart
of Kuoni’s corporate culture and is reflected in our corporate values.
The Kuoni Group takes a long-term, entrepreneurial approach to the issue
of sustainability in all of its activities along the value chain.
The Kuoni Code of Conduct sets out the ethical principles, including
explicit ones relating to sustainability, that apply across the whole of
■■■
Kuoni’s sustainability strategy is coordinated centrally by the
the Kuoni Group – to the Board of Directors, management and all
Corporate Responsibility department. Kuoni’s Group Executive Board
employees, including all subsidiaries operating under the Kuoni name
functions as the steering committee. The Corporate Responsibility
or under other brand and company names.
More about the Kuoni Code of Conduct
as well as the Supplier Code of Conduct:
www.kuoni.com at Corporate Responsibility.
department is the internal coordination and control centre for implemen
tation in the company’s day-to-day life. It is also the contact point for
■■■
The Supplier Code of Conduct
external stakeholders. Kuoni has built up and consolidated its Corporate
Responsibility network within the group organisation. By establishing a
The Supplier Code of Conduct, which is a binding part of every hotel
“virtual CR team”, made up of people from different business units, Kuoni
contract, requires compliance with social and environmental standards
has taken another step in the integration of CR into all of its activities.
along the value chain.
This network consists of twelve representatives of operational and functional areas, who ensure that sustainability issues are integrated
■■■
Voluntary Commitments
into business processes, and that regional priorities are also identified.
More and more travel companies and hotels are campaigning actively
■■■
CORPORATE RESPONSIBILITY: AREAS OF ACTIVITY
www.thecode.org
against the commercial sexual exploitation of children. By signing the
Code of Conduct for the Protection of Children from Sexual Exploitation
Kuoni focuses on five specific areas of activity within the field of
in Travel and Tourism, Kuoni has committed itself to preventative
Corporate Responsibility. These are: employee engagement, sustainability
measures to fight child prostitution. In line with the “Tourism Child
in the value chain, sustainable products and marketing, human
Protection Code”, Kuoni provides information to its customers, places
rights, especially the rights of children, climate change and protecting
contractual obligations on its partners, and shows partner hotels
the environment.
and employees the best way to react if they become aware of child abuse.
Kuoni has signed up to the UNWTO Global Code of Ethics for Tourism
(GCET). The aim of this comprehensive set of principles is to provide
www.unwto.org/ethics/index.php
guidance to stakeholders in tourism development: central and local governments, local communities, the tourism industry and its employees and,
of course, holidaymakers and visitors from abroad.
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>>
www.toinitiative.org/
>>
Kuoni is also a member of the Tour Operator Initiative. This is a Swiss-
looking at issues help Kuoni to identify new opportunities and alter
registered association open to all tour operators regardless of their size
natives. Kuoni then works with its stakeholders on finding new and
or location. Its aim is jointly to develop management tools and pro-
innovative solutions.
jects in holiday destinations in order to promote sustainable development.
■■■
■■■
Focus Theme: Employees
■■■
Approach
Stakeholder management
Active and constructive dialogue with stakeholder groups is crucial. It
helps to adapt Kuonis CR strategy to society’s needs, implement this
As one of the world’s leading global leisure and destination management
strategy, predict where opportunities and risks will lie, and see our busi-
travel organisations, Kuoni acknowledges that it is the creativity,
ness from another perspective. At the same time it gives the company
diversity and dedication of our employees that leads us down the path of
the chance to integrate valuable feedback about the current progress into
success. The company depends on its employees to be its face and voice
the further development of Kuonis Corporate Responsibility strategy.
and seeks their commitment to reinforce the sustainability strategy. For
Kuoni seeks and promotes structured dialogue with all stakeholder groups.
our colleagues to better understand what Corporate Responsibility
This happens on two levels:
(CR) means at Kuoni, we focus on training, awareness building through
group-wide CR Days and open dialogue.
■■■
Kuoni organises an annual workshop for stakeholder groups on a
■■■ Kuoni employees host
Christmas raffle benefiting
charity
Through the annual CR Christmas
Campaign, Kuoni employees have
supported the charitable organisation
Child’s Dream in providing life-saving
treatments and surgeries for children
in Myanmar. Child’s Dream was established in 2003 as a non-profit organisation dedicated to unconditional help
for underprivileged children in the
Mekong Sub-Region.
Kuoni employee satisfaction survey leads to plans
specific theme. The “Wider Circle” meets once a year to discuss the chosen
■■■
topic and suggest concrete opportunities for action. The workshop allows
for improvements
Kuoni to explore and discuss the topic with relevant stakeholder groups so
■■■ WORKSHOP FOR STAKEHOLDER
GROUPS
The topic of the first of these dialogue
sessions was “Fresh Water and Tourism”. More than 30 representatives
and experts working for external
organisations, including the World
Water Council, the Gender & Water
Alliance and the UN Environmental
Programme (UNEP), took part in the
workshop, providing and discussing
possible strategic areas of activity for
Kuoni in the area of “water and tourism”.
Kuoni can identify the best way forward and implement the actions
required.
Kuoni has vastly invested in internal communication over the last years;
More about this subject on page 60.
the global Intranet (K-Net) is available to all Kuoni employees worldwide.
The EMPOWER survey, which was established in 2010, gives employees
■■■
Meanwhile, the “Inner Circle”, made up of internal and external
stakeholders, takes a critical look at Kuoni’s sustainability strategy and
the opportunity to provide anonymous feedback and even to rate their
direct managers.
suggests ways of developing and improving it. The aim of this consul
Third annual Corporate Responsibility Day brings fair travel closer
tative committee is to keep pushing the integration of sustainability into
■■■
corporate strategy and policy, and into specific ongoing business
to home
activities.
Kuoni is dedicated to engage employees so that they better understand
■■■
Kuoni also maintains a constant exchange with stakeholder groups
as it seeks valuable input about its current business activities. These
the concept of fair travel in their working lives. Therefore, building upon
the success of the previous two Corporate Responsibility (CR) Days in
stakeholders include non-governmental organisations (NGOs), the media,
2009 and 2010, this year’s worldwide Kuoni CR Day “Fair Trade & Travel:
suppliers, employees, investors, customers and business partners.
Aware & Fair” focused on the role of fair trade in tourism and daily
The stakeholder groups’ different approaches, points of view and ways of
life. Thoughts and ideas on how to travel more fairly and how Kuoni as a
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>>
company can contribute to a more sustainable tourism development took
>>
■■■
Supporting suppliers at key destinations
centre stage. Employees were also encouraged to take the “Fair Tourist
Pledge” based on the Global Code of Ethics for Tourism by the UN World
Kuoni contributes to capacity building not only through Travelife (see
Tourism Organisation. As part of the CR Day, colleagues worldwide
above), but also through workshops for its key suppliers in the desti
were invited to participate in a recipe competition which featured dishes
nations. In 2011, Kuoni organised and supported workshops in the Domi
oriented to their local cultures and which incorporated fair trade
nican Republic, Mexico and Kenya. It has also continued its partner-
products wherever possible. The recipes reflected the cultural diversity of
ship with local NGOs in Bulgaria, India and South Africa, which further
the Kuoni workforce and were shared with all colleagues in the form
support hotel partners in these destinations.
of a cookbook, the “Good Food Diary”.
■■■
■■■
Active participation in the Travelife Sustainability System
focus theme: Sustainable Value Chains
Kuoni is an active member of the Travelife steering committee and contri
Kuoni’s value chain consists of several thousand independent companies
butes its expertise and time to the development of this industry-wide
as well as own operations in more than 50 countries worldwide.
certification system for sustainable tourism. Kuoni supports Travelife in
Supporting and encouraging the different members of our value chain to
this critical phase, whereby the scheme is transforming itself from a second
improve their sustainability performance is one of our most important
party to a third-party monitoring system and which entails a criteria
aims – as well as, due to its complexity, one of our greatest challenges.
review. The company also encourages and supports Travelife in becoming
accredited by the Global Sustainable Tourism Criteria. Kuoni sees
■■■
Monitoring the sustainability performance of all core properties
benefits from being actively involved in Travelife: The multi-stakeholder
■■■ Integrating Sustainability
at Procurement & Production
Since early 2010, Kuoni’s centralised
Procurement and Production (P&P)
Unit of the Outbound Europe Division is the interface between the various market regions and the suppliers
at the destinations. All members of the
P&P Unit, known as Destination Insi
ders, regularly participate in internal
workshops and trainings on sustainable travel. For example, participants
are trained on the Kuoni Supplier Code
of Conduct with the aim of effectively
integrating it into all contracts with
hotel partners. In order to further
develop CR requirements for the P&P
Unit, a working group consisting of CR
and P&P specialists collaborates to conceptualise new ideas and procedures.
This approach of leveraging sustainability through internal procurement
and production units will be expanded
to the other two Kuoni divisions in the
near future.
approach of the criteria review committee and the exchange between
More information about the management of the sustainable value chain
on w w w.k uoni.com at Cor porate
Responsibility.
Kuoni has 16 staff trained as Travelife auditors who have monitored all
the Travelife experts and representatives from other European tour ope
core hotel partners – constituting several hundred suppliers worldwide.
rators and NGOs spurs further progress towards sustainability within
These core properties cover more than 25% of the passenger volume
the whole industry.
of the Outbound Europe Division of the Kuoni Group. The hotels fulfil the
minimum standards set in the Kuoni Supplier Code of Conduct, and
are audited according to the Travelife Sustainability System, an inter
nationally recognised certification scheme for sustainable tourism. On
the whole, 90 core properties have achieved award level, which means
that 7% of Kuoni’s bednight-volume are in hotels with certified sustainability performance. Through Travelife, hotels are supported in improving
their sustainability performance as each audited hotel receives a list
with suggestions for improvements and is directed to further help online.
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■■■
Integration of sustainable supply chain management
>>
■■■
Kuoni becomes first tour operator in the UK to be Fair Trade certified
The Supplier Code of Conduct is now integrated in more than 90% of
Kuoni has launched the UK’s first ever Fair Trade travel package. This
all contracts of the Kuoni Procurement and Production Unit for the
pioneering travel package marks the first time in the 50-year history of
Outbound Europe Division (leisure travel) as well as in the destination
the global Fair Trade movement that systems have been developed to
management specialists. All staff responsible for procurement and
monitor the international trade in tourism services. Kuoni’s 13-day Fair
contracting at the Outbound Europe Division have been trained in
Trade Garden Route Tour is certified by Fair Trade in Tourism South
sustainable supply chain management and the minimum sustainability
Africa (FTTSA), which ensures that all components of the holiday (including
standards for hotels as described in the Supplier Code of Conduct.
Kuoni itself, accommodation, activities and all contractual relationships in the value chain) have been audited against Fair Trade Tourism
standards.
■■■ Sustainability in the mass
market
■■■
The way a hotel is managed largely influences working conditions, impacts
local nature conservation and affects
how local communities benefit from
tourism.
Kuoni takes strong pride in the relationships it has built with its custom-
The standards are designed to ensure that workers and affected communi-
ers. And it is committed to seeing these relationships continue to grow
ties benefit from tourism through long-term trading relationships, full
toward responsible travel and sustainable tourism. Besides generally im-
prepayment and binding cancellation agreements. An additional amount
proving its product line via knowledge transfer workshops and the
(called a premium) is incorporated into the retail price of each holiday
To increase the number of sustainable hotels in the Kuoni portfolio, the
company works with the sustainability
certification system Travelife. We are
committed to improving the current
standard of communication regarding
sustainability certified hotels in the
future, in order to increase consumers’ awareness and increase the sales
of certified hotels in the mass market.
Efforts are planned to enhance the labelling of these hotels in print and on
online customer communication.
sustainability audits implemented by Travelife, particular attention is
package and channelled into a cooperatively-managed fund for develop-
also paid to customers who have expressed wishes for sustainable
ment projects.
Focus Theme: Sustainable Products
travel packages.
■■■
■■■
Kuoni UK launches sustainable travel line ananea
Bamboo crafts centre in Thailand supported via Kuoni’s volunteer
travel programme
Count pink and grey river dolphins in Peru, establish a habitat for chee
In collaboration with Kuoni, a local tour operator called Track of the
tahs in Namibia, discover Vietnam whilst supporting the NGO Green
Tiger, along with local NGO Volunteers Without Borders (VWB), is esta
Cross in their work with disabled children or volunteer in northern Thai-
blishing a bamboo curing plant and crafts centre in the Thai village of
land to teach English to rural communities. These are just some of the
Ban Mae Lai. The village, currently threatened by mass outmigration to
experiences created by Kuoni and available in its sustainable product
urban centres, hopes that the curing facility will provide revenue earning
line ananea, which is in its sixth edition in Switzerland and was launched
opportunities. Curing will extend the lifetime of bamboo from 2 to 7– 10
in 2011 in the UK. The holidays under the ananea brand – a word that
years and thus increase its market value. Crafts production may increase
derives from the ancient Greek word for “renewal” – are available via an
in value by up to 400%. Kuoni will fund the project over a period of
e-brochure in the UK which features video streaming and stunning
three years, and will provide knowledge transfer to Track of the Tiger in
slide shows.
marketing and sales, as well as cultural immersion programmes to its
customers via the sustainable product line ananea.
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>>
■■■ Continued engagement
in child protection in the
Dominican Republic
As part of its commitment to the Child
Protection Code, Kuoni has been engaged in protecting children against
commercial and sexual exploitation
in the tourism industry in the Dominican Republic since 2007. In addition
to the series of four workshops orga
nised and facilitated by Kuoni in 2007
and 2010, two further workshops took
place in September 2011 in Cabarete
and Punta Cana.
In collaboration with the Ministry of
Tourism and “Movimiento Para el
Autodesarrollo Internacional de la
Solidaridad” (MAIS), a local non-profit
organisation dedicated to prevent the
abuse and mistreatment of children,
including commercial sexual exploitation, Kuoni aimed to strengthen stakeholder’s knowledge in implementing
the Child Protection Code with concrete guidance on “best practice” mea
sures for the tourism industry.
■■■
focus theme: Human Rights
Human Rights has been one of the focus areas of the Kuoni Group for
>>
■■■
Ensuring fair working conditions within the Kuoni Group
Top management within Kuoni states that their colleagues, including
several years. Recent studies from Tourism Concern and other NGOs
their ideas, motivation and innovation, are the key drivers of our success.
highlight the importance of human rights for the tourism sector and
The Human Resources Department therefore strives to recruit the best
further encourage tour operators to improve in this area. Furthermore,
and brightest employees drawn from all sorts of diverse cultures and back-
the United Nations Declaration on Human Rights has recently endor-
grounds. Such diversity demands openness, tolerance and empathy from
sed the Principles on Business and Human Rights by Prof John Ruggie.
each and every one of us. Kuoni is committed to ensuring, within our multi-
While Kuoni has directed its resources towards child protection and – to
cultural teams and our working environment, that nobody is harassed
a lesser extent – fair working conditions in the past, the company is
or discriminated against for any reason such as their race, religion, belief,
now looking at a more comprehensive approach towards human rights.
nationality, sex, age, sexual orientation or disability. We stipulate this
through the Kuoni Code of Conduct, which is an integrated part of Kuoni’s
■■■
A new Statement of Commitment and action plan on Human Rights
corporate culture and is binding for Kuoni’s Board of Directors, Execu
tive Board Members and all employees of the Kuoni Group.
The Kuoni Groups’ previous actions on human rights have not been based
on a formal policy developed through stakeholder consultations. Kuoni
■■■
Protecting children from sexual exploitation
has remedied the situation by launching a stakeholder dialogue in 2011
to develop a new Statement of Commitment and action plan on Human
An estimated two million children are believed to be exploited through
Rights. The company approached 18 experts and NGO representatives in
prostitution and pornography at a global level, according to the United
the field of human rights and tourism, as well as internal stakeholders
Nations Children’s Fund (UNICEF). With acts of child prostitution occur-
including the legal and compliance teams, in order to create the Statement
ring in hotels, Kuoni sees itself as duty-bound to take action against
of Commitment and action plan. This process ensures that Kuoni can
this problem. In 2006 Kuoni became a signatory of the “Code of Conduct
accurately identify human rights impacts and risks, as well as gaps in the
for the Protection of Children from Sexual Exploitation in Travel”
current approach. It also supports us in finding the best ways forward in
(www.thecode.org), an industry driven responsible tourism initiative that
the implementation of concrete actions, and provides interested stake-
supports businesses in implementing child protection policies. Kuoni
holders the opportunity to voice their concerns and help shape the policy.
has since taken a leading role by engaging with local non-governmental
The results of this process, namely the Kuoni Human Rights Statement
organisations and business partners in building awareness regarding the
and Commitment & Action Plan, will be published in 2012.
vulnerability of children to sexual exploitation due to tourism. Kuoni
organises training modules and awareness-raising for employees worldwide
and for key hotel partners in sensitive destinations. Furthermore, our
zero-tolerance policy towards child abuse is part of the Supplier Code of
Conduct for hotels.
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■■■ Coral reef protection project extended to the Maldives
Increases in tourist developments together with increases of sea surface
temperature due to climate change,
which leads to mass coral bleaching,
pose a clear threat to coral reefs. Thus
Kuoni has resolved to make its own
contribution to protecting coral reefs
by joining forces with one of the biggest international nature conservation
organisations – the International Union for Conservation of Nature (IUCN)
– in 2008 to support the protection of
the fragile coral reefs in Egypt. The
project has just been expanded to the
Maldives, a popular diving destination, and includes financing scientific
research as well as an awareness building campaign and workshops to train
and educate dive professionals.
■■■
Focus Theme: Environmental Stewardship
>>
■■■
Kuoni’s airline Novair optimises operations for maximum flight
efficiency
Kuoni is fully aware that it is dependent upon the rich natural resources
and unique landscapes at the destinations and thus has the responsibility
Despite its modest size – its fleet consists of 3 aircraft (in winter 4 air
to minimise the negative impacts of our business on the environment,
craft) – Novair (operated by Outbound Nordic) is a key advisor in
while at the same time enhancing its positive actions towards life in gene-
major international projects in cooperation with different bodies in the
ral. Kuoni focuses on concrete actions and pilot projects related to cli-
European Union. Novair was, for example, the only Swedish carrier
mate change, coral reef protection, water protection and biodiversity as
to participate in the AIRE (Atlantic Interoperability Initiative to Reduce
well as facilitating the transfer of knowledge on environmental manage-
Emissions) project, funded by the EU and which aimed to find ways to
ment to our hotel partners.
reduce carbon emissions and noise. Through the project, an advanced navi
gation system was used to avoid flying over populated areas and featured
■■■
Supporting ecotourism businesses to conserve biodiversity
highly accurate wind information uplinked to the aircraft, which was
integrated in the curved approach to reduce drag and fuel consumption.
In an effort to support conservation organisations to develop sustainable
During the project period 6% of the carbon emissions were reduced.
tourism, Kuoni, the International Union for Conservation of Nature
(IUCN) and the Swiss Federal Office for the Environment (FOEN) have
■■■
Kuoni analyses water scarcity across all its destinations
recently embarked on a joint project in East Africa. The focus of the project
is to provide conservation organisations, which have little knowledge
As a result of Kuoni’s stakeholder dialogue, four key areas for approaching
of the tourism market, with the business skills necessary to design success-
the topic of freshwater management have been identified, namely stand-
ful ecotourism products. By targeting natural World Heritage Sites,
ards for the supply chain, customer awareness and education, techno-
community-based organisations and ecotourism businesses, the project
logical solutions, and water footprinting and accounting methodologies.
will raise awareness on the need for effective and responsible tourism
Actions based on these working streams will be first implemented in
management near protected areas.
two pilot destinations – Egypt and Kenya – which were selected based on
a multicriteria decision analysis. Criteria used included passenger
volume and water scarcity statistics from the World Business Council for
Sustainable Development’s Global Water Tool, among others. A workshop
with key suppliers was subsequently held in November in Kenya to gauge
actual supplier commitment and plan actions.
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Corporate Responsibility Performance Summary
Employees
% of management positions held by women
Number of women in the Board of Directors, out of 7 members
Average rate of staff turnover, in %.
% of employees believe that “Kuoni is strongly involved in Corporate Responsibility”
% of employees having participated in the employee survey
Number of entries for the CR Day Competition
Average engagement score of all Kuoni Group employees, i.e. % of employees “satisfied in their job”
% of employees that understand the company’s Code of Conduct
Sustainable supply chain
% of direct contracts with hotels of Outbound Europe division containing the Supplier Code of Conduct
% of direct contracts with hotels of Destination Management Specialists containing the Supplier Code of Conduct
% of direct contracts with hotels of Global Travel Services containing the Supplier Code of Conduct
Number of reported cases of non-compliance to Supplier Code of Conduct
% of core hotels audited, within scope of Outbound Europe division (the ‘core hotels’
of Outbound Europe cover more than 25% of the total passenger volume)
% of core hotels which are certified by a recognised sustainability label
Number of employees of hotels and service providers trained in environmental care workshops
Sustainable products
% of guests staying in a sustainable hotel (certified through recognised label), within Outbound Europe scope
Total number of Travelife awarded hotels offered by Kuoni
Number of Volunteering Travel packages offered by Kuoni Switzerland
Human rights
Number of people trained in child protection issues worldwide
Number of human-rights-related standards in the Supplier Code of Conduct
Number of children supported through projects at destinations
Number of formal dialogues and consultations about human rights issues
Number of graduates from the hospitality programme in our project in Myanmar
>>
2011
2010
**
1
**
n/a 1
n/a 1
73
n/a 1
n/a 1
44
1
30
71
71
40
56
83
>90
>50
0 2
0
>90
>30
n/a
5
97
12
35
50
n/a
225
5
90
21
n/a
73
3
86
13
1546
18
4
Corporate Responsibility Performance Summary
Natural ressources
Tonnes of waste recycled through the award winning myclimate project in Bali
CO2 compensated by Kuoni’s customers in Switzerland, in thousand metric tonnes
Energy consumption at the Kuoni Headquarters (in MWh / full-time employee)
Energy consumption for Kuoni Scandinavia, Switzerland, France, India and UK, in GJ
CO2 emissions due to energy consumption for Kuoni Scandinavia,
Switzerland, France, India and UK, in thousand metric tonnes
CO2 emissions due to business travel for Kuoni Scandinavia, Switzerland,
France, India and UK, in thousand metric tonnes
% of CO2 emissions due to business travel that have been compensated through myclimate and GreenSeat
Office paper consumption for Kuoni Scandinavia, Switzerland, France, India and UK, in tonnes
% of recycled office paper purchased at Kuoni Scandinavia, Switzerland, France, India and UK
Catalogue consumption for Kuoni Scandinavia, Switzerland and UK, in kg / PAX
Total carbon footprint of Novair, in thousand metric tonnes CO2-eq.
CO2 emissions per revenue passenger-kilometre for Novair, in grams
Governance & organisation
% of Kuoni’s procurement employees of Outbound Europe division trained in sustainability issues
% of Kuoni’s procurement employees of Destination Management Specialists trained in sustainability issues
% of Kuoni’s procurement employees of Global Travel Services trained in sustainability issues
Number of meetings of the sustainable procurement working group of the
Outbound Europe division (sustainability and procurement experts)
2011
2010
16 300
10.4
4.53
32 930
10 000
4.43
5.12
n/a
1.55
n/a
5.2
100
552.4
59
2.17
314.74
70.4
n/a
87
n/a
>50 3
3.08
317.98
66.5
>90
>25
0
>90
0
n/a
3
2
**Due to the recent restructuring of Kuoni,
data is unavailable at this time.
1 Empower survey planned for autumn 2012
2Supplier Code of Conduct has been integrated in
new GTS standard contract in 2012
3Estimated figure applies to Kuoni UK, Switzerland
and Scandinavia
230
13
193
n/a
12
78 | 79
Gaining clarity on the conditions
of our own existence.
fig. 8:
Lake Vanda in Wright Valley, Antarctica, has what is said to be the clearest ice in the world.
80 | 81
01_03_
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01_03_01_
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The New Group Structure
■■■
Following the acquisition of online destination
■■■
The composition of Group Management remain
management travel services provider GTA in May 2011
unchanged, though the individual members have taken
and completion of the three-year investment and
on other responsibilities. The group structure focuses
cost reduction programme, the Kuoni Group adjusted
on the following growth drivers: expanding activities
its structure on 1 October 2011. Business units are
in Asia, sustainable development of the European tour
now grouped organisationally according to their busi-
operating business, expanding existing growth areas
ness models, activities, geographical spread, growth
and creating new ones.
prospects, customer portfolios and management
requirements. The structure rests on three divisions:
■■■
Consolidating the various worldwide business
operations into three new divisions is a logical conse
■■■
Outbound Europe: European tour operating busi-
quence of Kuoni’s growth strategy and acquisition
ness concentrating on the premium and package
activities, and of the investment and cost-reduction
holiday sector in the Scandinavia, Switzerland, United
programme that ended in 2011. Following the acquisi-
Kingdom, France, Italy, Spain and Benelux markets,
tion of GTA, Kuoni has quickly evolved into a broadly
the Scandinavian airline Novair, Playitas sports and
diversified global travel group with significant activi-
family resort, Fuerteventura/Spain, Procurement
ties in Asia. The new group structure enables us to
& Production Unit (P&P) and the Online and Mobile
position our existing tour operating businesses more
Unit. (From page 84)
effectively and take full advantage of cross-border,
company-wide synergies. At the same time, it is helping
■■■
Global Travel Services: Business-to-business FIT
(global business area with online destination services
to accelerate our high-growth activities, especially in
Asia.
for hotel bookings, transfers, excursions and restaurants), Group leisure travel business (global activities
with strong position in Asia) and MICE (Meetings,
Incentives, Conferences, Events). (From page 96)
■■■
Emerging Markets & Specialists: Tour operating
business in the emerging markets of India, China/Hong
Kong and Russia, Specialist outbound brands
Kuoni’s various business activities are
based on fulfilling its customers’ and
business partners’ demand for travel
services. As requirements and market
structures change over time, the company also has to keep adapting. Without this flexibility, the essential ability
to spot the seeds of successful business
opportunities can easily be lost in dayto-day business life.
(Switzerland, United Kingdom, Netherlands/Belgium),
Specialist inbound brands (USA, Africa, Middle East,
India and Asia-Pacific) and VFS Global (visa services
provider working for governments and embassies).
(From page 106)
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Division Outbound Europe
Novair operates three aircraft for short
and medium-haul flights. In winter
Novair leases an additional aircraft for
long-haul flights.
Independent specialist travel brands
in Switzerland, the UK and the Netherlands/Belgium and the Russian market are part of the Emerging Markets
& Specialists Division.
>>
The division includes Kuoni Group’s direct-to-customer (B2C) tour oper-
conditions. The various prices we manage to negotiate are then available
ating activities (Kuoni/Apollo) in Europe by a majority. It was established
to all the individual markets for their products. Each market decides
in 2011 as part of the new group structure, and represents a further
how to calculate the final price and how to assemble a complete travel
bundling of strengths in European tour operating business. The division
product that will meet its local customer requirements. Depending
includes the Outbound Nordic and Outbound Kuoni Europe Units.
on their focus and their business model, the national Kuoni and Apollo
Outbound Nordic includes the Sweden, Norway, Denmark and Finland
organisations put these land arrangements together individually
markets, as well as the Scandinavian airline Novair and the “Playitas”
with flights from the global reservation system, or couple them with pre-
sports and family holiday resort on Fuerteventura. Outbound Kuoni
booked seats on various airlines to create package holidays.
Europe includes the source markets of Switzerland, the United Kingdom,
France, Italy, Spain and Benelux (Netherlands and Belgium).
Tour operators earn their money on the one hand through the margins
they add to the purchase price of flight and hotel services, and on the
Procurement & Production = P&P
The Procurement and Production Unit (P&P) is an integrated part of this
other through booking fees for other services.
division. It is responsible for the coordinated joint purchasing of all land
arrangements (hotels, transfers and other services at the target destina-
When the travel products are ready, the markets tend to have a choice of
tions), which are then sold in the individual markets in combination
several sales channels through which to sell them. Depending on the
with local flight options. P&P is based in three hubs: Zurich, Stockholm
specific market, Kuoni and Apollo focus on the following channels: inter-
and Dorking (in the UK).
net sites, call centres, mobile devices like smart phones, own retail
outlets and third-party travel agencies.
The division also includes the Online & Mobile Unit, which runs and
develops all local internet sites in the source markets, as well as deploying
As at the end of 2011, the Outbound Europe Division was selling its
other modern mobile technologies to sell travel products.
products through the different channels in the following proportions:
24% through the internet, 9% through call centres, 23% though its
Holiday travel companies are also
known as tour operators.
The Outbound Nordic and Outbound Kuoni Europe Units represent our
own retail outlets, and 43% through sales channels outside the Kuoni
traditional tour operating business. This business accounted for 36% of
Group. The different brands’ websites serve as information and booking
Markets are also called Point of Sale.
Kuoni Group’s turnover in 2011.
platforms, while printed travel brochures are still used to inspire and
guide customers. In some markets the brochures are also made available
Product portfolios include hotels and
services such as transfers, trips, etc.
Volumes are the number of potential
guests at a destination or hotel.
In Western and Southern Europe Kuoni operates largely under the Kuoni
in electronic form for use on tablet computers (such as the iPad.)
brand, but in all countries sub-brands are also used to suit the quality,
focus and client segment of the business concerned. Apollo is one of the
Internet: Kuoni/Apollo runs its own websites in all markets, providing
leading brands in Northern Europe. In all markets holidays are offered
it with direct customer contact through the internet. Scandinavia takes
that are appropriate to the particular strategy, business model and
the highest proportion of bookings over the internet with 55% of the
target customer segment. Product portfolios are defined in conjunction
total. The equivalent figure in Switzerland is about 10%, and in the United
with the responsible Procurement and Production Unit. The aim is to
Kingdom 12%.
In Scandinavia Apollo also runs its
own airline, Novair. Hotel services
together with its own flights create
package deals. In Switzerland, Kuoni
provides package holidays as well as
individually arranged holidays. In the
other markets hotel services are combined with scheduled flights according to availability. With these arrangements, Kuoni is exposed to very little
risk because few services are purchased
in advance. In traditional package holiday business, Kuoni/Apollo bears the
risks associated with services that have
been agreed and purchased in advance
(flights and/or hotel beds). Prices for
these services can vary depending on
supply and demand.
In some markets, booking fees are
charged in retail outlets to cover advisory services and expenses; fees might
also be charged on internet bookings.
Third-party providers are travel agencies run by other tour operators, chains
or independents. These also include
internet portals run by virtual travel
agencies (OTA = Online Travel Agent).
The France, Italy, Spain and Benelux
markets have so far largely focused
their products on travel agency sales.
However, in 2011 Kuoni expanded or
set up its own websites in all these
markets to encourage direct customer contact.
achieve the greatest possible overlap of products so that higher volumes
of business with hotels allow us to negotiate more favourable contractual
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>>
>>
Call centres: Consumers phone up to buy products directly that they have
Product buyers from these teams travel to the target destinations and
seen either in a brochure or on the internet. In markets with third-party
negotiate prices and contractual conditions with hotels and other local
suppliers (external travel agencies) the sale can also be business-to-busi-
service providers. They do this on a bundled basis on behalf of all of
ness, with a tour operator ringing up a call centre directly.
the Kuoni/Apollo markets. Via this process, the teams can achieve more
favourable prices. Within each hub these purchased services are put
Apps are small programmes that run
on mobile telephones like the iPhone
or smartphones that use the Android
operating system.
Mobile apps: In the Scandinavian markets, the United Kingdom, France
together with products appropriate to the national source markets to
and Switzerland, Kuoni/Apollo promotes its products through mobile
create holidays that meet customer requirements in each country.
smartphone apps. These concentrate on package holiday offers and hotels.
They are a source of information and inspiration for holiday ideas,
The Online & Mobile Unit was created when the group was given its
which can then be booked by phoning a call centre, going to a travel
new structure during the year under review. This unit brings together and
agency or visiting one of the websites.
centrally coordinates all the local online activities run by Kuoni and
Apollo. The aim is to build up the range of products and significantly
Helvetic Tours is Kuoni Switzerland’s
package holiday brand.
Own retail outlets: In Switzerland Kuoni has a network of 95 retail
increase online sales through the existing websites. The comprehensive
outlets that trade under the Kuoni and Helvetic Tours brands, as well as
B2C hotel portal Octopus.com is also integrated into this unit.
In 2011 Kuoni significantly expanded
its European retail network. It opened
up more of its own travel agencies especially in the United Kingdom, Italy,
Spain and Benelux.
5 offices that deal with business travel. In the United Kingdom it has 21
The Stockholm hub is responsible for
buying in land arrangements in the
Mediterranean region, the Canary Islands and in North Africa because the
Nordic markets have traditionally sent
the largest numbers of holidaymakers to these destinations. The Zurich
hub is responsible for, among other
things, buying land arrangements in
North America, because Kuoni in Switzerland has always had the greatest experience in these markets. Meanwhile,
the Dorking hub has extensive expertise in the English-speaking countries
of the Caribbean, Africa and Asia.
In 2011 t he Ma ldives island of
Maafushivaru became the first holiday
resort procured exclusively for Kuoni
markets. This means that holidaymakers can only book this premium resort
through Kuoni.
retail outlets, in France 15, in Italy 5, in Spain 4, and in the Netherlands
In 2011 the Outbound Europe Division generated total turnover of
3. Kuoni’s travel agencies prioritise selling Kuoni’s own travel products,
CHF 2099 million and operating earnings (EBIT) of CHF 20.3 million.
though holidays offered by other operators may be available depending
Political upheavals in North Africa, especially Egypt, and the Euro-
on the particular focus of the agency concerned. Retail outlets facilitate
pean debt crisis had a serious negative influence on the Division’s perfor-
a more individual advisory process, with staff able to go into more detail
mance. The Italy and Spain markets in particular suffered from the effects
about an individual customer’s requirements than would be possible
of a far-reaching economic crisis. Within Scandinavia, Norway posted
over the internet. Customers tend to come into the retail outlets when
a particularly positive result, while Sweden struggled to cope with falling
they want to book more complex, higher value holidays.
demand and pressure on margins. Lower sales of holidays in Egypt
were offset to an extent by growth in demand for other destinations (such
Sales outside the Kuoni network: These products are sold by third-party
as the Canary Islands and Greece).
travel agencies and through external websites. Kuoni pays these providers a commission for every holiday sold.
Kuoni extended its commitment to sustainability during the year under
review. As a tour operator it is often impossible to exert direct control
The Procurement and Production Unit which was created in 2009 is based
over the negative social and environmental impact of products, because
in three hubs: Zurich, Stockholm and Dorking (UK). These hubs are
most services are delivered by contractual partners at the destinations.
responsible for buying in and preparing land arrangements in allocated
However, Kuoni can exert an influence on its customers, on the way its
holiday regions for sale in the national markets. Allocation of the holi-
suppliers work and on what happens in the destinations by systemati-
day regions is based on the know-how within the Kuoni Group, but also
cally integrating sustainability requirements into its value chain.
on the product priorities within the national markets. Each hub has procurement staff responsible for the relevant holiday regions.
86 | 87
Octopus.com was part of Gullivers
Travel Associates (GTA) and so was also
purchased in 2011. On its internet platform, Octopus.com offers more than
90 000 hotels worldwide, mainly in
cities. In 2011 the portal saw a 30% increase in bookings. The portal is available in more than 20 travel markets.
See Financial Report, from page 158
(results shown in accordance with previous group structure).
Integrating sustainability criteria into
the value chain is another key issue:
in the effort to achieve this integration, the P&P Unit is a central interface for the Corporate Responsibility Department. It has helped ensure
that the Supplier Code of Conduct is
included in standard contracts. This
obliges K
uoni’s partners to, among
other things, respect local labour laws
and international human rights, not
to tolerate discrimination by gender
or religion, to ensure workplace safety
and hygiene, to pay wages in accordance with the law, and to comply with
environmental standards. These sustainability standards are monitored using the Travelife System. Over the last
two years, Kuoni has used the Travelife System to review its 300 most important partner hotels – accounting for
roughly 25% of passenger volume in
this division.
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Procurement & Production Unit (P&P
has a close collaboration with Corporate Responsibility to further extend
sustainability of hotel products.
>>
The introduction of systematic value chain management has done two
market. Alongside the Apollo brand, Kuoni offers Swedish customers
things. Firstly, it enables Kuoni to identify potential risks and conflicts
golf holidays under the Golf Plaisir brand and high-end luxury holidays
that might arise in connection with suppliers, destinations, customers
from Lime Travel.
and employees at an early stage. Secondly it is helping the group cement
In 2011, Norway was the most successful tour operating market in the
its status as a dependable, respected partner by ensuring the quality
■■■
of the services it provides.
Kuoni Group and is the second biggest operator in the country. Despite
falling demand for holidays in North Africa and a highly competitive
■■■
OUTBOUND NORDIC
environment, a greater volume of holidays were sold in local currency
terms than in the previous year. This is due mainly to the expansion
Playitas is managed by Outbound Nordic. Most of the Scandinavian guests
are from Denmark.
Most of the products in Scandinavia
are sold over the internet, though retail outlets and third-party sellers are
still important.
Product procurement (P&P, Stockholm
hub), marketing planning and financial management are all handled centrally in Stockholm for all the markets.
This unit includes the Sweden, Norway, Denmark and Finland markets
of flight capacities. Apollo offers holiday flights from 16 different air-
with its brand Apollo, as well as the Scandinavian airline Novair and
ports in Norway. 46% of products are sold over the internet, and 15%
the “Playitas” sports and family holiday resort on Fuerteventura, Spain.
through Apollo’s own outlets and the call centre. 39% of holidays are sold
The two biggest Nordic markets are Sweden and Norway, followed
through external providers. In Norway, Apollo also offers cruise holidays
by Denmark. Holidays were sold in the Finnish market for the first time
to individual travellers. In 2011 the apollohotels.no booking portal
ready for the 2011 summer season. Most of the products sold in Scan
was launched with more than 50000 hotels worldwide. This new internet
dinavia and Finland are easy-to-book package holidays under the well-
service is based on the technology used by online provider Octopus.com,
known Apollo brand to short, medium and long-haul beach destinations.
which was acquired as part of GTA.
28% of the flights used for Apollo products are provided by the unit’s
In Denmark, Kuoni operates through two main brands, Apollo and
own airline, Novair. The individual Nordic country organisations work
■■■
closely together, and benefiting from the resulting synergies.
Falk Lauritsen Rejser which are, combined, the number three operator
in the market. While Apollo offers both package holidays and individual
The most popular holiday destinations
in 2011 were the Greek and Canary Islands and Turkey.
Mythos Beach is the first hotel to be
constructed and fitted out according
to Apollo’s specifications and requirements.
In December 2011 the apollohotell.
se booking portal was launched with
more than 50 0 00 hotels worldwide.
www.apollo.se
www.apollohotell.se
www.golfplaisir.se
www.limetravel.se
■■■
Apollo is the third largest holiday company in Sweden. In 2011,
97% of customers booked short-haul
package holidays in 2011. The remaining bookings were for holidays in faroff countries, especially Thailand.
www.apollo.no
www.apollohotels.no
In Denmark Krone Golf Tours offers
tailored golf travel arrangements.
www.apollorejser.dk
www.falklauritsen.dk
www.kronegolftours.dk
travel, Falk Lauritsen Rejser focuses exclusively on package deals. In 2011,
approximately 58% of turnover was generated through the internet,
most of the holidays (56%) were sold over the internet. The other sales
either directly with customers or through travel agencies’ websites.
channels were the call centre, sports groups and associations, and reader
66% of all sales were made through direct customer contact. During the
holidays in partnership with media outlets. Challenges faced during the
year under review, the Mythos Beach holiday resort was opened
year under review included overcapacities in the flight market and the
on Rhodes. Apollo does not own the resort, but its exclusive deal gives it
resulting intense price competition. Nevertheless, in local currency terms
access to important hotel capacity on the Greek island for the Swedish
the Danish Unit achieved higher turnover than in the previous year.
source market. In 2011, political developments, especially in Egypt, had
Matkat is the Finnish word for “travel”.
Apollo entered the Finnish market for the first time in 2011 with holi-
a significant impact on demand from Swedish customers. Some of the
■■■
decline in turnover was compensated for by the higher number of book-
day products for the 2011 summer season. And in 2011 more than 20 000
ings for holidays on the Canary Islands. The European debt crisis
customers travelled with the Apollomatkat brand. For Finnish customers,
and lower consumer confidence resulted in an oversupply of plane seats,
the most popular holiday destinations were Croatia, Greece and Cuba.
which in turn put a great deal of pressure on prices in the Swedish
The portfolio focuses exclusively on easy-to-book package holidays, 75%
There was heavy demand for package
holidays on the Greek islands, in Croatia and Bulgaria and on the Canary
Islands, making Apollo in Norway a
market leader for these destinations.
88 | 89
The hotels that Apollo offered exclusively in the Finnish market were particular popular.
www.apollomatkat.fi
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“Ad hoc flights” are flights arranged to
suit the specific needs of companies
and organisations. In 2011 Novair employed 50 pilots and 220 flight attendants.
Novair is also one of the most progressive airlines in terms of climate protection. Its modern fleet and high seat
occupancy of 98% mean that it has the
lowest possible negative impact on the
environment. In various pilot projects
focused on significantly increasing
efficiency, Novair has been able to reduce CO2 emissions significantly.
www.novair.net
Playitas is the only hotel resort owned
by the Kuoni Group.
Playitas has an Olympic-size swimming pool, an 18-hole golf course,
5 tennis courts, a cycle station with professional racing bikes and mountain
bikes, as well as the island’s biggest fitness studios. In 2011, the highest proportion of guests came from Denmark,
Sweden and Germany. The Playitas Resort was visited mainly by sports clubs
(cycling clubs, triathletes) and families
in 2011. It is very popular as a training
camp for sports groups.
of which were sold through the internet during the year under review.
■■■
Outbound Kuoni Europe
Apollo Finland is part of the Scandinavian network of travel activities,
and benefits from the synergies this creates.
This unit includes all the markets in Europe that are operated under the
Kuoni brand and its sub-brands, i.e. the Switzerland, United Kingdom,
■■■
As part of the Scandinavian business model, Kuoni runs the airline
Novair. The fleet consists of three Airbus A320– 200 short and medium-
France, Italy, Spain and Benelux (Netherlands and Belgium) markets.
Most of the business done in these markets falls into the category of
haul aircraft, and one long-haul Airbus A330– 200 leased only for the
premium-sector tour operating, and is focused on individual and tailor-
winter season. These planes cover 28% of holiday flights used by Kuoni’s
made holiday travel. Package holidays, similar in style to the ones offered
own Scandinavian and Finnish holiday brands. However, individual
by Apollo in Scandinavia, are only offered as an additional line in the
seats are also offered over the internet on a “flights only” basis. In addi-
Swiss market. All markets sell their travel products through a variety of
tion, “ad hoc flights” are sold to companies and organisations.
See Outbound Nordic, from page 88.
channels, though the weighting of these channels differs from country
to country. While Switzerland and the United Kingdom sell more than half
■■■
The Playitas sports and family resort is located on the east coast of
their products directly to customers through their own retail outlets,
the Canary Island of Fuerteventura. The resort consists of an apart-
call centres and the internet, in France, Spain, Italy and Benelux the
ment hotel with 114 studios and 96 apartments, a 4-star hotel with
majority of products are sold via third-party providers (external travel
167 rooms, 52 junior suites, 4 pool suits, and 24 villas with their own swim-
agencies). During 2011, however, sales channels based on direct contact
ming pools. Playitas is the most modern sports and familiy resort on
with customers were also expanded in these markets.
the Canary Islands with many sports facilities. In 2011 it updated and exKuoni is the biggest and best known tour operator in Switzerland.
panded its wellness and sports area. Average occupancy during the year
■■■
under review was 85%. Turnover increased compared with the previous
Switzerland is the group’s original home market, the country where
year, and Playitas posted a break-even result.
entrepreneur Alfred Kuoni founded the company in 1906. The Swiss product portfolio is divided between four brands. Kuoni offers the widest
■■■
www.playitas.net
>>
In 2011, the Outbound Nordic Unit generated turnover of CHF 929 mil-
and most varied range of any holiday company, with short, medium and
lion. Operating earnings (EBIT) came in at CHF 33.9 million. Lower
long-haul beach package holidays in high quality hotels, cruise trips
demand for travel in North Africa had a particularly negative impact
all over the world, city breaks, multi-centre tours and individual travel
on turnover. Some of the decline was compensated for by increased
arrangements, mainly in North and South America, Asia and Australia/
bookings for holidays in the Canary Islands and Greece. In local currency
Oceania. Helvetic Tours is the package holiday brand with beach holi-
terms Norway especially achieved a significant increase in turnover,
days worldwide and city breaks in Europe with good value for money.
while in Sweden the lower demand for holidays to Egypt and greater pres-
Direkt + Ehrlich Reisen positions itself as a direct sales brand. Its package
sure on margins had a negative effect on results. Business was
beach holidays, multi-centre tours, city breaks and mountain holidays
good at the Playitas sport and family resort, leading to improved results.
can be booked over the internet and through the call centre. In December
2011, Kuoni became the first Swiss holiday company to launch a virtual
tour operator, X-helvetictours.ch. Flights and hotels are packaged up every
Kuoni Switzerland sells its products
through the Kuoni, Helvetic Tours,
X-helvetictours.ch and direkt + ehrlich
reisen brands.
X-helvetictours.ch finds flights directly through the global reservation system, on which 50 scheduled and lowcost airlines offer services to 65 destinations. It also provides access to a
hotel database of 3 000 beach hotels
and more than 42 000 city hotels. The
Kuoni Group databases run by Kuoni
Connect and GTA are also available.
day to create beach holidays and city trips, which are then sold through
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>>
this internet platform. Prices change each day depending on the latest
■■■
In the United Kingdom, Kuoni is one of the best known brands at
exchange rates.
the premium end of the travel market. Since 1964 it has been the leading
company for high-quality long-haul holidays. These holidays are put to-
■■■
The transformation project is facilitating the switch over from a productfocused to a service-focused sales organisation.
lets. End of 2011, Kuoni had a network of 95 retail outlets throughout
and hotel risk. Travel products are sold through 21 Kuoni retail outlets
The most popular holiday destinations
for individual travellers in 2011 were
Greece, Cyprus, Turkey, Spain (Balearics and Canary Islands), the USA and
Australia, as well as cruises.
www.kuoni.ch
www.helvetictours.ch
www.X-helvetictours.ch
www.direktundehrlich.ch
“High street” retail outlets are typically
located in well-frequented town-centre
shopping areas.
Switzerland (either Kuoni or Helvetic Tours), as well as 5 offices dealing
and a wide network of quality travel agencies around the UK. Kuoni’s
with business travel. Kuoni Switzerland’s products are also sold by ap-
personal travel experts are able to tailor-make holidays for the most deman-
proximately 800 external travel agencies. During 2011, 54% of holidays
ding of clients. Further distribution channels are the internet and call
were sold through direct contact. The internet accounted for about 10%.
centre. The expansion of the company’s own sales channels continued in
The transformation project launched in 2009 was continued in 2011.
2011. The number of high-street retail outlets increased from 12 to 21.
This involved employees being trained in new sales and advisory con-
This in-house retail network was augmented by four independent travel
cepts, as well as the introduction of new sales support tools throughout
agencies that carry the Kuoni brand name. Kuoni’s internet presence was
Switzerland. Sales figures for our own retail outlets were better than
upgraded and expanded. 2011 also saw the launch of the kuonihotels.com
For British specialists, see page 108.
www.kuoni.co.uk
www.kuonihotels.com
the industry average during the year under review. In 2011 12 retail out-
booking portal, which provides access to more than 50 000 hotels around
lets were completely refurbished and given a visual makeover so that
the world. This new internet service is based on the technology used by
they fit in with the Kuoni/Helvetic Tours image.
online provider Octopus.com, which was part of GTA. The new “smart by
Kuoni” programme of especially good-value, but high-quality holidays
Political turmoil in the North African tourist destinations of Egypt,
was launched in 2011.
Tunisia, and Morocco had a particularly negative effect on the Swiss market.
Political upheavals in Egypt led to a temporary suspension of cultural
Demand for these destinations fell by more than half, and this decline
trips along the Nile. Demand had still not recovered by the end of 2011.
was only partially offset by new bookings for holidays in the Canary Islands,
Austerity measures imposed by the UK government are also having
Greece, Cyprus and Turkey. In addition, the strength of the franc against
a generally dampening effect on the mood of the country’s consumers.
The booking process was improved,
personal planning was integrated, and
the company started to disseminate
content through social media channels.
Favourite holiday destinations in 2011
included the Maldives, Thailand, Sri
Lanka, the USA, Dubai and East Africa
for Safaris.
All holidays are put together for customers individually.
Holiday requirements are met on an
individual basis to create private or
group trips.
the euro in summer 2011 led to an outflow of bookings over the Swiss
border to travel agencies in neighbouring countries, especially Germany.
■■■
At the World Travel Market 2011 in London, Kuoni UK introduced
Britain’s first Fair Trade certified travel product to the market. This tour,
■■■
For Swiss specialists, see page 108.
gether to meet the requirements of the individual traveller. In the British
market Kuoni is only exposed to a low level of pre-purchased flight
■■■
New advisory tools include the Travel Compass and the Expert Exchange
Network. The Travel Compass helps
customers identify what they really
want from a holiday by intuitively selecting different image and text cards.
Using the Expert Exchange Database,
employees, wherever they are located,
can help give advice and support sales
discussions in retail outlets by mail,
phone or chat.
Kuoni Switzerland has comprehensive access to all the key sales chan-
nels. The main ones are the internet and the company’s own retail out-
In 2011, 55% of holidays were sold
through direct customer contact. External travel agencies accounted for
45% of sales.
The unit continued to develop its commitment to sustainability.
produced in accordance with Fair Trade standards, takes travellers
Kuoni Switzerland became the first big tour operator at the interna-
along the Garden Route in South Africa. All the overnight stays are in cer-
tional ITB travel trade show in Berlin to be awarded the “TourCert
tified lodges. This product is part of the sustainable “ananea” pro-
– CSR Tourism Certified” sustainability label. The label was awarded by
duct line, which Kuoni launched in the UK during the year under review.
TourCert, an independent certification body, in recognition of Kuoni’s
sustainability work within the tourism industry. In a transparency
■■■
Kuoni operates in the premium segment in France, mainly offering
analysis conducted by the Research Institute for Leisure and Tourism on
long-haul holidays. It runs five brands that specialise in different styles of
the subject of sustainability in the Swiss market, Kuoni took first place
travel and different destinations. The main Kuoni brand is known for
among the 8 selected companies.
its high-end beach holidays, multi-centre tours, safaris, cultural trips and
92 | 93
Kuoni France is known for its premium
and tailor-made holiday products. It offers only few limited package holidays
and so hardly carries any of the associated flight capacity risks.
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65% of Kuoni France’s products were
sold via external travel agencies.
Around 3 500 offices offered holidays
from the Kuoni portfolio. 35% of sales
were through direct customer contact,
mainly via Kuoni’s own retail outlets,
eight of which are in Paris. The direct
sales figure also includes sales made
over the internet and through the call
centre. The proportion of direct sales
is increasing as Kuoni’s own retail network grows.
www.kuoni.fr
www.kuoni-emotions.com
www.scanditours.fr
www.celtictours.fr
www.vacancesfabuleuses.fr
www.ateliersduvoyage.com
>>
cruises. Kuoni Émotions is the luxury product line, arranging exclusive
Kuoni retail outlet was opened in Valencia. The tough economic
holidays mainly in the Caribbean, Africa, Arabia, the Indian Ocean
situation in Spain and the escalation of the European debt crisis had
and Asia. Scanditours focuses on holidays in Scandinavia, and the Celtic-
a negative effect on results.
www.kuoni.es
tours brand on Ireland, Northern Ireland and Scotland. The Vacances
Fabuleuses brand concentrates on travel to North America, while Les
■■■
The Benelux market is split between the Netherlands and Belgium.
Ateliers du Voyage offers tailor-made holidays in exotic destinations
In the Netherlands, all products are sold under the Kuoni brand. In
worldwide, either privately or as tours for small groups. All holidays can
Belgium both Kuoni and Best Tours are present as tour operators. The
be booked individually, with flight services available all over the world.
products focus on individual holidays to long-haul destinations, ac-
The fall in demand for cultural trips to Egypt and Jordan, as well as
companied tours and à la carte hire car tours. 76% of holidays were sold
for holidays in Japan, China and Indonesia following the natural and
through external travel agencies in 2011, and 24% through Kuoni’s own
nuclear disaster in Japan had a significant impact on results. Meanwhile,
websites, call centres and retail outlets. In an attempt to expand direct
however, destinations like Cuba, Peru and Brazil benefited from the
contact with customers, outlets were opened in Amsterdam, The Hague
shift in customer requirements. There was also much higher demand in
and Haarlem during the year under review. The sharper focus on Kuoni’s
2011 for the luxury holidays supplied by Kuoni Émotions.
own sales channels also presented the biggest challenge in 2011, be-
Belgian tour operator Best Tours has
no link to the Italian operator of the
same name. The fact that both companies were acquired by Kuoni in 2010 is
a coincidence.
www.kuoni.nl
www.kuoni.be
www.besttours.be
cause it meant that there was a downturn in sales through external
Best Tours was acquired in 2010. Its
product portfolio is focused mainly
on beach holidays and historical and
cultural tours.
In 2011, the most popular holiday destinations were East and Southern Africa,
the Caribbean, Mexico, Thailand and
the South Seas/Polynesia.
www.kuoni.it
www.besttours.it
■■■
In the Italian market, Kuoni mainly offers medium and long-haul pre-
travel agencies.
mium beach holidays, wedding holidays and cultural trips. During the
year under review, about 88% of these were sold using a B2B model via
■■■
approximately 3 000 external travel agencies throughout the whole
CHF 1170 million. Earnings before interest and tax (EBIT) came to
In 2011, Outbound Kuoni Europe generated total turnover of
of Italy. Kuoni itself runs 5 of its own retail outlets in the North of the
CHF – 13.6 million. While the markets in the United Kingdom and France
country. Its high-quality holiday products are sold under the Kuoni and
were profitable, and Switzerland (excluding specialists) broke even,
Best Tours brands. In 2011 Kuoni Italy expanded its direct-to-customers
the smaller markets – Italy, Spain and Benelux – reported negative results
sales channel by adding an internet service.
for the year under review. Cost savings and a simultaneous increase
Egypt especially had been a popular destination for Italian holiday mak-
in margins, especially in the United Kingdom, Switzerland, France and
ers until 2011, so the political turmoil in the country led to a significant
Spain, was only enough to make up part of the decline in turnover caused
decline in demand. The Best Tours brand, which is best known for its cul-
by the fall in demand for holidays in North Africa, and by the European
tural tours, was hardest hit by this trend. At the same time, the difficult
debt crisis.
economic situation caused by the European debt crisis had a negative
effect on consumer sentiment in Italy.
Kuoni runs 4 of its own travel agencies in Spain.
■■■
Spain is the smallest market served by the Outbound Kuoni Europe
Unit. Its product portfolio is built around premium long-haul holidays.
These are mainly to North America, Africa and Asia. 78% of these
holidays were sold in 2011 through external travel agents. New flagship
stores were opened in Madrid and Barcelona during the year. Another
94 | 95
01_03_03_
01_03_03_
division global tRavel seRviCes
FIT = Fully Independent Traveller.
Travel services that can be booked in
dividually.
■■■■
This division covers the business operations of FIT and Groups/
>
Kuoni GRoup
Division Global Travel Services
■■■■
The Global Travel Services Division (GTS) was established as part
MICE. These areas were greatly enlarged by the acquisition of Gullivers
of the new group structure in 2011 following the integration of Gullivers
Travel Associates (GTA) in May 2011.
Travel Associates (GTA) into the Kuoni Group. GTA’s activities were
merged with the existing business operations of Kuoni Destination
Groups is devoted to group travel ser
vices, performed at the destinations.
The best known of these are the holi
days arranged for Asian groups in Eu
rope.
MICE = Meetings, Incentives, Confer
ences, Events. The MICE unit works for
companies, organisations and insti
tutions, organising conferences, con
gresses, trade fairs and holidays that
are offered as part of a bonus/incen
tive scheme.
B2B = BusinesstoBusiness. Travel
services are provided for tour opera
tors, wholesalers, travel agencies, on
line travel agencies and virtual tour
operators which then sell the services
on to consumers. GTS and its brands
do not have direct contact with the end
customers. In this business, the Kuoni,
GTA and Kuoni Connect brands are not
consumerfacing like the brands in the
Outbound Europe Division’s tour op
erator business.
■■■■
The Global Travel Services Division (GTS) business model is based on
B2B relationships with various business partners. GTS offers a compre-
2012. GTA was acquired on 5 May 2011 from Travelport for a purchase
hensive worldwide portfolio of travel services to these partners. They all
price of CHF 616 million. The company, with its headquarters in London,
centre on specialist databases that provide online access to more than
was founded in 1975 and has since become one of the world’s leading
45 000 hotels in 170 countries, as well as 15 000 individual and regular
providers within the fast-growing B2B online travel services market, as
transfer services, city tours, excursions, tickets, tour guide services and
well as in the market for group leisure travel.
restaurants. The business partners – typically travel agencies, well-known
Kuoni Destination Management’s own B2B activities began as far
internet travel portals and tour operators – can find and book these prod-
■■■■
ucts directly online for their customers. Thanks to the worldwide online
back as 1963 when it opened its first sales office in Tokyo catering for
networking of these services and the division’s modern technology, thou-
Japanese tour groups that wanted to visit Europe. This area of business
sands of bookings can be processed electronically and efficiently every day.
GTS division operates with around
3 200 employees in 38 cities. GTA with
2 400 employees is particularly well
established in Asia and Europe. KDM,
has 800 employees and is present in
Asia, Europe, the Americas and the
Middle East.
has continuously expanded ever since. Then in 2003, the FIT business
was launched and successfully positioned with the creation of the Kuoni
■■■■
GTS also focuses on creating individual, tailor-made group travel for
Connect hotel database.
tour operators and travel agents. The tour operators buy in these group
The acquisition of GTA has led to a tripling of Kuoni’s turnover from
arrangements and then offer them to their own customers in local source
■■■■
markets, e.g. Japan. Actually implementing these travel arrangements
B2B destination management business. It has also resulted in a signifi-
in the target destinations, e.g. Europe, is another of the GTS Division’s
cant expansion of Kuoni’s presence in the key Asian markets. Experts
core competencies, and one in which it has decades of experience.
believe that B2B online business, as operated by the GTS Division, is the
business model of the future for the global tourism industry, and that
See FIT, from page 99.
See Groups/MICE, from page 101.
Management (KDM). The integration process will continue throughout
■■■■
GTS works with companies, organisations and institutions to create
it has great potential for growth. By acquiring GTA and creating the
programmes for congresses, conferences and trade fairs, as well as leisure
GTS Division, Kuoni has become one of the leading providers operating
and fun events, and travel packages that are used as part of a bonus/in-
in the worldwide B2B travel services market. Its portfolio clearly sets it
centive scheme (MICE). These programmes are arranged and run locally
apart from major European competitors in the traditional tour operating
by GTS.
sector.
■■■■
In 2011, the Global Travel Services Division generated turnover of
CHF 1 844 million. Earnings before interest and tax (EBIT) came to
CHF 36.7 million, while operating earnings before acquisition and inte-
The results include GTA’s turnover and
operating earnings (EBIT) from May to
December 2011.
gration costs stood at CHF 56.9 million.
01– m A R K e t R e p oRt
96 | 97
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>>
The crisis in North Africa and the natural and nuclear disasters in Japan had
a particularly strong negative impact.
(results shown in accordance with existing group structure).
■■■
Within Asian and Pacific source markets, there was strong growth
>>
■■■
FIT
01_03_03_01_
in the Far East and especially the emerging markets China and Indonesia.
Group business recovered well in the Japanese market after the nuclear
The FIT unit populates Kuoni’s own worldwide databases with a wide
disaster in March 2011, though demand for travel in the FIT sector
range of different travel services. The majority of these services are
remained subdued. Overall, European source markets posted a slight
overnight hotel stays, but they also include more than 15 000 individual
increase in bookings, with bookings made through travel agencies
and regular transfer services, city tours and excursions, tickets, tour
achieving double-digit percentage growth.
guide services and restaurants, all of which can be booked online. The
North and South America and the Middle East also contributed to the
business models in FIT are based on B2B relationships with various
division’s good result with double-digit percentage growth.
business partners. The GTS Division runs databases containing a very
extensive portfolio of services. Nevertheless, despite the huge volume
on offer, it is very easy and fast for customers to make their selections and
book services. Thanks to state-of-the-art technology, the whole booking
process is efficient and dynamic from the start right through to the automated billing at the end.
FIT = Fully Independent Traveller.
Travel services that can be booked individually.
Around 45 0 00 hotels, mainly in cities
in 170 countries, can be booked.
B2B = Business-to-Business. Travel services are provided for tour operators,
wholesalers, travel agencies, online
travel agencies and virtual tour operators who then sell the services on
directly to consumers.
Providers include hotel chains, individual hotels, bus companies, restaurants, etc.
Dynamic = prices are updated daily
■■■
Employees negotiate contracts, including all the purchase and sales
conditions, with the businesses that provide these services at the dest
inations. All services are loaded dynamically into the appropriate databases and offered for sale. Travel agencies, tour operators, online travel
portals and virtual tour operators can access the databases and then
offer the products either online or through personal contact with their
customers (e.g. in travel agencies). Kuoni thus acts as a link between the
service providers (suppliers) – hotels and bus companies for example –
Internet portals, OTA = Online Travel
Agents
When consumers go to an OTA portal to book hotel stays and other
services, they may well be buying
products that have been put together by Kuoni, but Kuoni itself does not
present an external face in this kind
of business and uses different brands.
and the sellers who have direct customer contact (clients). Kuoni uses
modern technology to operate worldwide B2B platforms that give hotels
in particular the sort of sales opportunities that they simply wouldn’t
be able to access on their own. Kuoni offers these services through four
different B2B brands: GTA and Kuoni Connect for wholesalers, tour
operators, travel agencies and internet portals, Travelcube for travel
Around 34 0 00 travel agencies, tour
operators and online portals all over
the world use the GTS Division’s hotel
databases.
agencies (online/offline) in Europe and Latin America, and Travel Bound
for travel agencies (online/offline) in North America.
98 | 99
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K u o n i G ROUP
>>
In 2011, for example, the FIT databases
had to handle more than 40 million
queries per day. Every day up to 3 700
overnight stays were booked in Paris
alone. Hotel offers were available in
13 different languages on computer
input pages. In 2011 there were more
than 660 0 00 bookings for destination
services. Other popular cities include
London, Barcelona, New York, Dubai,
Bangkok and Hong Kong.
■■■
Kuoni earns its money in the FIT sector through margins built into
>>
■■■
Groups/MICE
its prices and through commissions. Margins in this area of business
tend to be lower than in the traditional tour operating business, but
This unit includes B2B group travel business and B2B “MICE”
there is much greater operational leverage. The business model is charac-
activities. Kuoni has decades of experience in the group travel business.
terised by a high degree of automation, which keeps transaction costs
It opened the first sales office for this type of business in Tokyo in 1963
low. Thanks to “dynamic sourcing” of products, prices and therefore mar-
in order to sell European holidays to Japanese tour operators. This part of
gins can be adjusted continuously in line with supply and demand.
the destination management business has enjoyed above-average growth
The use of modern technology allows bookings to be processed largely
over the last years. Kuoni Destination Management (KDM) has conse-
electronically. There is only a small amount of manual processing
quently developed into one of the leading providers of group travel ser-
involved.
vices, especially in Asia. GTA has been involved in this business for more
MICE = Meetings, Incentives, Conferences, Events. Organising and executing conferences, congresses, trade fairs,
leisure and sports events, and holidays
that are offered as part of a bonus/incentive scheme.
than 36 years and had a similar volume as KDM at the time of taken over.
■■■
In 2011, the FIT business generated turnover of CHF 1 070 million.
In the Asian market, B2B group holidays are sold under both the
Operating earnings (EBIT) came to CHF 43.5 million. Despite numerous
■■■
negative influences, this sector managed to post positive growth rates
Kuoni and the GTA brand. In China, Thailand, Taiwan, Malaysia,
during the year under review, doing particularly well in Asia. There was
Indonesia and the Philippines, Kuoni/GTA is the market leader. In Japan,
positive sales growth in Europe too, especially to travel agencies, while
Kuoni/GTA is one of the biggest and best established providers. Even
demand from traditional tour operators remained at the previous year’s
after the tsunami and nuclear catastrophe of March 2011, the Japanese
level. North and South America and the Middle East generated double-
market has proved itself to be very robust. In the second half of 2011,
digit percentage growth.
turnover returned to the previous year’s level. Other important markets
The business models used in the FIT sector are recognised as being par-
for group travel include India and the USA. In all regions, Kuoni/GTA
ticularly efficient and progressive, which means that global opportunities
runs its own B2B sales offices and cultivates close and longstanding
for growth are excellent.
relationships with its clients. The group travel business includes services
at the destinations for tour groups of various sizes. Travel programmes
are offered to external tour operators who then sell them on to consumers
under their own brands in their own countries. At the destinations,
Kuoni/GTA carries out the arrangements the tour operators have sold as
Travel services for groups include overnight hotel stays, transfers, organised
bus trips, restaurants and meal arrangements, as well as train trips, museum entry, etc.
In Europe 700 employees work in 23
cities for Kuoni/GTA, organising and
running holidays and looking after the
groups.
The best known group holidays for
Asian tourists in Switzerland include
the Glacier Express train journey from
Zermatt to St. Moritz and the railway
up to the Jungfrau Joch in the Berner
Oberland. In France and Italy, Paris
and Rome are among the most popular cities.
holidays to customers in their local markets. Group holidays are available
as accompanied tours or for groups travelling on their own. In 2011
the largest proportion of group holidays in the GTS Division were sold in
Japan. The most popular travel destinations were Switzerland, France,
Italy and Germany. In 2011, three million overnight stays in hotels were
booked in Europe for group travellers, mainly from Asia. With demand
and opportunity for travel continuing to increase sharply, we expect to
see further excellent growth in this business area in future.
100 | 101
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K u o n i G ROUP
>>
On average 110 groups of various sizes
were looked after each day in Europe
in 2011. An average of approximately 400 Japanese tourists a day visited
Paris with Kuoni/GTA. There was also
a trend towards visiting only one country on a trip, rather than trying to fit
in several at once.
In this context “incentives” are holidays that are used by companies or organisations as part of a bonus/incentive programme.
In 2011, 73% of orders received by Gulf
Dunes were for corporate incentive
holidays to Dubai and Oman.
>>
Experienced group travellers increasingly also go on individual holidays.
■■■
In 2011, the Groups / MICE business generated turnover of
The GTS Division meets this demand with a global network of FIT ser-
CHF 789 million. Earnings before interest and tax (EBIT) came to
vices (see page 99), which will further help reinforce growth opportuni-
CHF 13.4 million. Despite the political upheavals in the Middle East,
ties in this area.
the natural and nuclear disasters in Japan, and the European debt
crisis, the unit achieved positive organic growth. Group travel
■■■
The unit’s second growth area is B2B trade with companies, orga
business ex-Japan was especially robust, posting an increase in turnover.
nisations and institutions. The MICE business, through its brands,
Despite the economic uncertainties in many regions, the MICE
offers itself as a comprehensive service agency for the organisation and
business also benefited from rising demand, especially from Asia.
execution of conferences, congresses, trade fairs, events and incentives.
Even though Kuoni is a leading provider of group leisure travel services,
This includes organising infrastructure, logistics, arrivals and de
especially in Asia, its activities in the MICE sector are still relatively
partures (without flights), overnight stays and leisure programmes.
small, meaning that there are plenty of growth opportunities for this
Kuoni operates MICE business through different brands. In Europe
division.
through Kuoni Destination Management (KDM), Kuoni Events
and Conference & Touring (Germany), in the Middle East with Gulf
Dunes (United Arab Emirates and Oman) and in the USA with Kuoni
Destination Management USA, which has 12 sales offices. Gulf
Dunes, which was acquired in 2010, is well established in the source
markets of North and South America, Europe and Australia.
102 | 103
Taking sanctuary
in borderlands.
fig. 9:
The Tibetan Songzanlin monastery founded 300 years ago by the fifth Dalai Lama near the mythical Shangri-La.
104 | 105
01_03_04_
K u o n i G ROUP
Division Emerging Markets & Specialists
“Emerging Markets” as a synonym for
growth markets.
“Tour operators” arrange the components that make up a holiday – typically flights and accommodation plus
additional services.
Local specialist businesses at holiday
destinations are known as “destination management companies” (DMCs).
VFS = Visa Facilitation Services
■■■
The division includes three business areas: Kuoni’s tour operators
>>
■■■
Inbound specialists are local experts with offices in the holiday des-
in India, China/Hong Kong and Russia. “Specialists” covers our
tinations themselves. Kuoni runs a worldwide network of 6 dest ination
autonomous European tour operators (outbound specialists) as well
management companies (DMCs). Their local presence and networks
as our dedicated local expert companies in the holiday destinations
provide substantial added value for customers. They employ local people
(inbound specialists). The division’s third growth area centres on VFS
who have great local knowledge, which they pass on both to the guests
Global, a company specialising in external administrative visa services.
who arrive from abroad and to our outbound specialists in Europe.
Kuoni has thus created a worldwide network of experts that covers the
■■■
Kuoni Group defines emerging markets as markets or business
whole process from initial customer contact at home right through
models that develop and change quickly, very much driven by innovation.
to the experiences and encounters facilitated on holiday by the inbound
These include the big growth markets of India and China, but also the
specialists. These inbound specialists tend to operate in the destinations
Russian market, which is characterised by an extremely demanding,
under their own well-known brand names.
Outbound and inbound specialists,
page 108.
highly competitive business environment. The business model developed
Emerging markets, page 116.
VFS Global is one of the most innovative businesses run by Kuoni.
more than 10 years ago for VFS Global – based on helping governments
■■■
and embassies manage the whole process of issuing of visas – also comes
The company’s business model centres on helping governments and
under this definition. In business terms, these areas are particularly
embassies to process travellers’ visa applications securely and efficiently.
driven by a readiness to take risks, as well as by speed, innovation and
Its support work allows authorities to make decisions about issuing visas
the use of the very latest technologies. Investments in these activities
more quickly and process applications more cost effectively. At the end
tend to focus on IT as well as on acquisitions that can quickly accelerate
of 2011 VFS Global had more than 500 Visa Application Centres (VACs)
growth.
in more than 60 countries, supporting 37 governments.
■■■
Our outbound and inbound specialists are notable for their largely
■■■
VFS Global, page 120.
In 2011, the Emerging Markets & Specialists Division generated
autonomous, highly entrepreneurial management teams. These compa-
turnover of CHF 1 286 million and operating earnings (EBIT) of
nies focus heavily on their core destinations and core styles of travel, and
CHF 69.8 million. Political developments in North Africa and the Middle
they pride themselves on being able to meet the most exacting customer
East, the European debt crisis, the severe earthquake and subsequent
requirements. Kuoni has 17 outbound specialists in Switzerland, the
tsunami and the nuclear disaster in Japan, but also the strength of the
UK and the Netherlands/Belgium. Within these customer markets the
Swiss franc and the sharp devaluation of the Indian rupee against
companies tend to operate under their own well established and very well
all the main currencies had a major negative effect on the division’s busi-
known brands. They occupy niche markets and maintain excellent
ness performance. Nevertheless, several markets and specialists recorded
relations with service providers and destinations. Individuality, quality,
growth, especially in India and Arabia, as well as specialists based in
detailed knowledge and personal service are the hallmarks of the
Switzerland and the UK.
customer advice they provide.
106 | 107
01_03_04_
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>>
01_03_04_01_
■■■
OUTBOUND & INBOUND SPECIALISTS
>>
■■■
Dorado Latin Tours (Switzerland) – For more than 20 years, the main
strength of this Swiss-based South America specialist has been custom■■■
OUTBOUND SPECIALISTS
ised holidays tailored to individual requirements. In 2011 there was particularly healthy demand from customers for accompanied private trips
Kuoni’s specialist travel companies know their destinations and their
to Argentina, Chile, Bolivia and Ecuador. New trends included combined
particular styles of travel inside out, and they are very good at identify-
flights and cruises over the Antarctic and trekking in the Andes.
Employees who are themselves originally from South America share their
customers’ passion for the destinations
and are proven experts in the continent’s individual countries.
www.dorado-latintours.ch
ing their customers’ requirements. There is virtually no wish that they
intens travel (Switzerland) – intens travel has been the Swiss market
cannot fulfill. They operate under their own well-known brands either
■■■
directly with customers (internet, call centres) or through travel agents.
leader for specialised trips to India, Nepal, Bhutan and China for more
Kuoni’s Outbound Specialists Unit covers a portfolio of 17 specialists
than ten years. Long-serving staff have visited these countries countless
in Switzerland, the UK and the Netherlands/Belgium. These companies
times, allowing them to develop profound expertise about the region. The
have been active in their markets for up to 40 years. Though acquired
brand was given a new logo and visual identity during the year under
by Kuoni, they retain their entrepreneurial freedom. They continue to
review. The most popular destination regions were Rajasthan and Kerala
operate under their own brands and develop their products and services
in India. An interesting new trend that the company is beginning to see
independently, but can also take advantage of the fact that they are part
is the popularity of “slow travel”, where holidaymakers stay at fewer des-
of a globe-spanning travel services company like Kuoni. This ability to
tinations on their trips, but spend longer in each one.
make the best of both worlds is a major factor in the positive performance
Kontiki-Saga (Switzerland) – More than 30 years old, this company
recorded by these specialist businesses. Their success is further bolstered
■■■
by the closeness with which their employees identify with them, their
is the Swiss market leader for travel in Northern Europe. Kontiki-Saga’s
passion for their destinations and travel specialisms, their innovation
specialist regions and countries are Scandinavia, Iceland, Scotland, Russia,
and their entrepreneurial ambition.
the Baltic states, as well as the Arctic and Antarctica. The company
Mumbai is the gateway to India for
tourists. This city of 16 million inhabitants absorbs 5 million commuters a
day from the suburbs.
www.intens.ch
Half the annual number of Northern
Europe customers travel to Scandinavia and Iceland in July.
www.kontiki.ch
organises tailor-made individual and group holidays. In 2011, multi-centre
Up to 80% of customers book another
study trip with Cotravel after their first.
www.cotravel.ch
■■■
Cotravel (Switzerland) – This company based in the region of Basel
tours and log cabin holidays were among the most popular options.
has been a leading specialist in tailor-made study trips, which it markets
Manta Reisen (Switzerland) – Specialising in diving holidays and the
in partnership with various media outlets, for 25 years. 90% of its holi-
■■■
days are offered as reader/listener trips in conjunction with newspapers,
islands of the Indian Ocean, Manta Reisen is the Swiss market leader
magazines and radio stations. The trips are accompanied by correspond-
in this area. One country where it operates is the Maldives, where one of
ents and news journalists who provide participants with background
the most popular locations in 2011 was the island resort of Maafushivaru,
information about local politics and society. The most popular holiday in
which is exclusively available to Kuoni customers. Trendy exotic diving
2011 was the Trans-Siberian railway journey from Zurich to Moscow
destinations have been in Asia and in Oman.
All of Manta Reisen’s employees are
keen divers and know exactly where
the best dive sites are in the Indian
Ocean and Red Sea. Maafushivaru is
offered exclusively by Kuoni.
www.manta.ch
and on to Beijing. The company has now also started offering small VIP
group trips with up to 12 participants.
108 | 109
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>>
African holidays that are easy to book
with good price for value have been
introduced on www.iAfrica.ch.
See also Private Safaris, Inbound Specialist, page 114.
www.privatesafaris.ch
■■■
Private Safaris (Switzerland) – This specialist’s core competencies
>>
■■■
Carrier (United Kingdom) – Carrier has been crafting luxury tailor-
are centred around the safari countries of East Africa (Kenya, Tanzania,
made holidays for more than 30 years. It meets the individual travel
Rwanda, Uganda) and Southern Africa (South Africa, Namibia,
requirements of discerning customers by using the highest quality hotels
Botswana, Zambia, Zimbabwe, Mozambique, Malawi). Private Safaris
and service providers. In 2011 the Caribbean and especially the islands
started operating in Africa 40 years ago, and was the first Swiss
of Antigua and Barbados were the most important destinations. The
travel company to work there. The brand has its own staff in both the
US cities of San Francisco, Las Vegas and Los Angeles were also popular
customer markets and the destinations. In 2011, stays in luxury
with Carrier’s customers.
Carrier, based in Cheshire, has 50 employees. Its 15 biggest bookings in 2011
had a total value of more than one million pounds. Carrier is the UK’s only
travel brand to have won the Condé
Nast Traveller Award as “Best Tour Operator” three times.
www.carrier.co.uk
tent camps in East Africa and fly-in safaris in Botswana were popular.
CV Travel (United Kingdom) – CV travel specialises in villa holidays
Rotunda Tours, which specialises in Southern African holidays,
■■■
merged with Private Safaris, which was originally a specialist in East
in prime locations all over the world. It offers more than 500 villas in
African safaris, during the year under review.
total, including villas with staff, family villas, wedding villas, pool villas
and “eco” villas. The main destinations are in Europe and the Caribbean.
In 2011, customers travelled approximately 100 million kilometres by
train – the equivalent of going round
the world 2 500 times.
www.railtour.ch
www.frantour.ch
■■■
Railtour/Frantour (Switzerland) – These two rail specialists operate
CV stands for Corfu Villas. It first
started renting out private villas on
the Greek island 40 years ago.
www.cvtravel.co.uk
2011 saw the launch of a range of villas in the American market.
in Switzerland under their own brand names: Railtour primarily in
Journeys of Distinction (United Kingdom) – It could hardly be more
the German-speaking and Frantour broadly in the French-speaking part
■■■
of the country. They are the Swiss market leaders for rail travel in the
personal: on each luxury holiday provided by Journeys of Distinction,
countries bordering Switzerland. Frantour specialises mainly in holidays
guests are supported by a dedicated member of staff. Holidaymakers
in France. In 2011 demand was liveliest for German cities, Paris and
have their own personal assistants, who provide information and make
rail travel in Switzerland. In the travel agencies, hotels at daily prices
all the organisational arrangements. Once at the destination, local tour
can now be combined with rail services. Plans are also being made to
guides enrich the holiday experience. The most popular travel destina-
enable customers to book hotel rooms at daily prices and train travel
tions are Australia and New Zealand. In 2011 new tours in the Indian
directly online while at home.
Himalayas and over the Andes in South America were introduced. On the
Instead of just watching like other
tourists, guests can join in. Journeys of
Distinction is the only travel company
to offer a volunteering programme in
the temple at Amritsar in India. Guests
serve food and help wash up.
www.jod.uk.com
latter trip the company’s managing director personally accompanied
All employees speak at least one of the
national languages spoken at the destinations.
www.uniquetravel.ch
■■■
Unique Travel (Switzerland) – Unique Travel specialises in holidays
her own customers.
of all types to Croatia, Slovenia, Montenegro and the western Balkans.
Kirker Holidays (United Kingdom) – Kirker Holidays is renowned
Because its staff originally come from the destination countries them-
■■■
selves, they have great experience and many years of direct contact with
for its short cultural tours. Concerts, opera performances, art exhibitions,
local service providers. During the year under review the Mediterranean
selected restaurants and private tours are arranged by a high-quality
coast of Dalmatia and the island of Brac in Croatia were most popular
concierge service. The company prides itself on fulfilling the most exact-
with customers. Direct flights are now being offered from Switzerland to
ing customer requirements. Kirker’s cultural collection includes 140
Montenegro.
dest inations in 40 countries. Customers were particularly interested in
98% of customers rate their holidays
with Kirker Holidays as good or excellent. Its portfolio includes hotels that
the large tour operators don’t tend to
know. It has 27 exclusive hotels in Venice alone.
www.kirkerholidays.co.uk
cultural trips to Spain and journeys on the Venice-Simplon Orient
Express.
110 | 111
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>>
All chalets have their own host who
provides meals for the guests either
as cook or in partnership with a top
local restaurant.
www.skiverbier.com
Voyages Jules Verne offers tours in
more than 60 countries – from weekend breaks to three-week tours to China.
www.vjv.com
■■■
Ski Verbier (United Kingdom) – Skiing specialist Ski Verbier offers
>>
■■■
Shoestring (Netherlands) – Shoestring specialises in adventure trips
exclusive chalet holidays in the Swiss and French Alps. It has 16 fully
as group experiences. Its holidays are aimed at younger customers and
equipped chalets for rent in Chamonix and in the Swiss ski resort of
its local tour guides speak to travellers in English. The company sells most
Verbier. The company puts the emphasis on exclusive, high-quality chalets.
of its holidays through the internet, and it uses both online chat facilities
It launched a programme of holidays in Chamonix in 2011. Smaller
and social media to promote its services. Destinations in Central and
chalets directly on the pistes were particularly in demand.
South America, Asia and Africa attracted most interest from customers.
■■■
www.koningaap.nl
www.koningaap.be
www.shoestring.nl
Voyages Jules Verne (United Kingdom) – This UK tour operator spe-
cialises in worldwide, accompanied group tours with a focus on culture
■■■
INBOUND SPECIALISTS
and history. The most popular destinations include Egypt, the Middle
East, North Africa, India, China and the countries of Indochina. In 2011
These companies are at home in the destinations. Kuoni has the most
the company’s group tour programme was extended to cover Central
extensive destination management network of any large travel company.
America, Indochina and Africa.
Kuoni’s network of destination management companies (DMC) has
been growing steadily since 2006, either through acquisitions or organic
A strong personal element has been
added to the internet service. Customers can communicate via chat with the
experts, or through social networks
like Facebook and Twitter.
Shoestring focuses on customers aged
between 20 and 45 who are keen to travel as cost-effectively as possible.
■■■
Koning Aap (Netherlands/Belgium) – This company focuses on group
The specialist companies with the largest turnover in 2011 were AlliedTPro
(USA), Desert Adventures Tourism
(Middle East), Asian Trails/Australian Tours Management (Asia/Pacific).
growth. Most of these DMCs operate locally under their own well-
holidays for customers aged 50 and over, accompanied by a dedicated
known brand names. Their local roots, their own networks of service pro-
Dutch or Belgian tour guide. The direct brand offers holiday programmes
viders, and their employees’ extensive local knowledge mean that
in countries outside Europe, especially exclusive trips to Central Asia,
they can offer high-quality land arrangements tailored precisely to
Iran, North Korea and Bhutan. The most popular destinations in 2011
customers’ requirements. These services are offered to Kuoni tour
were Costa Rica, India, Indonesia, China and Tibet, East Africa, Peru
operators as well as to competitors. In 2011 70% of turnover was gener-
and Bolivia. Koning Aap focuses heavily on the internet as a sales
ated with external tour operators.
channel.
■■■
Each destination country is given its
own internet site – a total of 20 websites
full of specialist knowledge.
www.yourway2go.nl
www.yourway2go.be
■■■
YourWay2GO (Netherlands/Belgium) – This tour operator was laun-
AlliedTPro (USA) – This company, with offices in New York, Miami,
Orlando, Las Vegas, Los Angeles and Hawaii, specialises in holidays
ched in December 2011 and specialises in the same destinations as
within the USA. These include individual and group holidays, fly-drive
Koning Aap. The difference is that YourWay2GO concentrates on indi
holidays, guided tours and tailored holidays in the VIP concierge sector.
vidual travellers. It presents its travel ideas in personal style on its
In 2011 the VIP concierge programme was enhanced by the addition
websites. Online chats with its staff provide a quick and simple way of
of new lifestyle and explorer trips. Favourite destinations were once
identifying people’s exact requirements.
More than one million overnight stays
were booked in 2011; there were approximately 500 accompanied tours,
and more than 700 group holidays.
www.alliedtpro.com
again New York, Las Vegas and Miami. Individual holidays to Miami,
Las Vegas and Hawaii enjoyed particular growth.
■■■
Asian Trails (South East Asia) – Asian Trails specialises in Thailand,
Cambodia, Indonesia, Laos, Malaysia, Myanmar, Vietnam and China.
It offers a wide variety of holidays to these countries. These include
guided tours, adventure holidays, individual holidays, family holidays,
112 | 113
Thanks to expansion in India as a
source market, holidays to Bangkok,
Pattaya and Phuket were arranged for
around 15 0 00 new customers.
www.asiantrails.net
01_03_04_
K u o n i G ROUP
>>
Private Safaris’ jeeps and buses in Africa travelled a total of almost eight million kilometres in 2011, the equivalent
of going round the world 200 times.
Together with the International Union
for the Conservation of Nature (IUCN),
and the Swiss Federal Department for
the Environment, Private Safaris ran
a workshop for nature conservancy
projects in Kenya and Tanzania. During the 4-day workshop, Private Safaris
shared valuable experiences relating
to marketing, product development
and business requirements with more
than 30 participants. The aim was to
show that tourism can be used as an
opportunity for sustainable economic
development, to spread knowledge and
facilitate market entry. Private Safaris
in South Africa is the world’s first inbound operator to be certified under
Fair Trade Standards, meaning that it
can produce Fair Trade holidays.
>>
tailor-made travel and classic beach holidays. During the year Asian
■■■
Australian Tours Management (Australia) – This company special-
Trails expanded into India as a source market for group travel and MICE.
ises in services for private and group holidays, specially themed holidays
Holidays to Vietnam were particularly popular in 2011.
and MICE business. Its most important source markets are in Asia
(India/China) and Europe. Australian Tourism Management’s services
■■■
Private Safaris (East/Southern Africa) – The staff at Private Safaris
are booked by tour operators, travel agents and online platforms. In 2011,
guide and look after customers who want a taste of primeval Africa.
there was a particularly noticeable rise in demand for MICE services
The company, which is based in Nairobi and Cape Town, has more than
for customers from Malaysia and Indonesia.
In 2011 Kuoni’s outbound and inbound specialists generated overall
safaris, jeep tours, individual and group tours and MICE. In 2011, new
■■■
individual holidays in Ethiopia were added to the portfolio. Latin
turnover of CHF 900 million. Operating earnings came to CHF 26.6 mil-
America was added as a new source market for Southern African holidays,
lion. External events had an particularly negative effect on some areas
with a new online booking portal in Spanish and Portuguese. In East
of the specialists’ business. Individual specialist companies were affected
Africa, tourists favoured the Masai Mara nature reserve, and in the
in different ways depending on their geographical focus and main type
Southern part of the continent the Kruger National Park proved most
of business. The political turmoil in North Africa and the Middle East
popular. Namibia and Botswana continue to attract a lot of interest.
had a significant negative impact on many of our companies. In terms of
local influences, the floods in wide areas of Thailand affected Asian Trails,
■■■
Sita & Distant Frontiers (India, Nepal, Sri Lanka) – In the Indian
while the strong franc hurt the specialist Swiss tour operators and the
market, Kuoni has two very well known brands providing travel services
European debt crisis created problems for numerous providers. On the
Private Safaris, Outbound Specialist,
see page 110.
within the country. Sita specialises in private holidays of all types. This
other hand, many of the specialists posted impressive growth, especially
includes trekking, spa holidays (Ayurveda), adventure holidays, golfing
in the Middle East (Desert Adventures Tourism), Switzerland (Dorado
holidays, cultural trips and beach holidays. These holidays are arranged
Latin Tours) and the UK (Kirker Holidays).
www.sita.in
www.distantfrontiers.in
In 2011, Desert Adventures Tourism
booked more than 7 000 customers into
the world-renowned Burj Al Arab in
Dubai for dinner.
www.desertadventures.com
www.atmtravel.com.au
35 years’ experience and specialises in land arrangements such as
www.privatesafaris.com
The Destination Knowledge Centre is
staffed by employees with particular
local experience. The team travels the
whole of the Indian subcontinent looking for people and stories. Staff have so
far covered more than 66 0 00 kilometres in an effort to bring customers new
travel experiences.
Favourite destinations in 2011 were
Sydney, Melbourne and the Gold Coast.
There were particularly healthy bookings in the Chinese market for holidays
in Tasmania.
as tailored individual trips and as group tours. New resorts, locations
and encounters with local people are constantly being added to the
portfolio created by the Destination Knowledge Centre. Distant Frontiers
concentrates on tailored products and special holidays for very dis
cerning business customers, as well as on incentive trips for companies.
■■■
Desert Adventures Tourism (Middle East) – Desert Adventures Tour
ism is one of the leading providers of destination services in the Middle
East, with a particular focus on the United Arab Emirates and Oman. The
company specialises in individual and group holidays, tours and excursions, as well as arranging additional leisure activ ities and providing
sports events packages. In 2011 services were extended to Jordan with
the opening of an office in Amman. The company’s most popular tours included desert safaris and visits to the Gulf cities of Dubai and Abu Dhabi.
114 | 115
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>>
01_03_04_02_
■■■
EMERGING MARKETS: INDIA, CHINA, RUSSIA
>>
■■■
In the B2B sector Kuoni India sells holiday travel to companies
and organisations within India, offering the products under various
■■■
INDIA
brand names. These include incentive holidays, travel to national
and international trade fairs, and travel services as an official partner
Kuoni started investing in India in 1996, already an “emerging market”
of global sports events. Kuoni India also organises and runs study
at the time, by acquiring leading tour operator “SOTC Holidays” of
trips and educational stays for children and students.
Bombay (now Mumbai). Kuoni India currently runs a direct customer
SOTC = Sindh Oriental Tourist Company
business (B2C) as well as providing business-to-business (B2B) services
■■■
In 2003, Kuoni India opened its “Kuoni Academy”. This is the leading
for other companies. It operates largely under the well-known SOTC
training institution for courses relating to the tourism industry in
brand along with various sub-brands. Kuoni/SOTC is India’s leading
India; its original aim was to produce sufficient numbers of skilled em
tour operator for foreign travel.
ployees. By 2011 the Academy was operating from 25 centres throughout
the country. Their mission is to provide students with training and
■■■
During the year under review, there
were 15 self-run retail outlets in operation.
However, another 95 franchised agencies, whose owners work for themselves,
carry the Kuoni or SOTC brand name.
135 travel agencies without brand
names sell only SOTC products.
3 500 agents sell SOTC products.
40 travel consultants sell holidays to
customers from home.
Sales enquiries and bookings are dealt
with by the call centre, and customers
are advised over the phone.
www.sotc.co.in
www.kuoni.in
SOTC offers all types of travel to its direct customers. It focuses
particularly on accompanied group holidays, tailor-made holidays and
development courses in tourism and travel services. Three new training
centres were opened in 2011.
luxury trips to long-haul foreign destinations, as well as holidays within
India itself, Nepal and Bhutan. These holidays are all sold through a vari-
■■■
CHINA/HONG KONG
Sports events are Formula 1 races, ATP
tournaments (tennis), Euro 2012 (football), FIFA 2014 (football), ICC (cricket)
By 2011 more than 12 0 00 students had
been trained, and successfully placed
with companies in the tourism industry.
In 2011 new destinations were launched
in Indonesia, Vietnam, Cambodia, China and Israel. In the business customer
sector, Kuoni has been appointed official partner in India for the European
2012 Football Championships and the
2014 World Cup. The most popular destinations for Indians were South Africa,
Europe, China and North America.
During the year under review Kuoni
India won a total of 13 awards for excellent quality and service in both the
consumer and B2B sectors.
ety of booking and advisory channels. Kuoni’s own branded tour operating products are available through more than 250 sales outlets spread all
Kuoni is participating in the growth of the Chinese market by means
over India, as well as over the internet. Sales outlets are divided into
of various activities. The company’s China/Hong Kong Unit sells holidays
the following basic types: Own retail outlets, run by Kuoni itself. Travel
through direct contact with customers, while B2B group travel business
agencies run as franchises. Travel agencies that do not carry the Kuoni
and our FIT destination travel services are managed within the Global
brand name. Travel agents that sell SOTC products as well as products
Travel Services Division (GTS). Kuoni also owns a 30% stake in Et-china.
supplied by competitors. Home-based tour consultants (HBTC). Online
This company has a significant stakeholding in the major Southern
via Kuoni’s own websites and call centre.
Chinese tour operator GZL (Guangzhou Travel Service), which is strategically important for Kuoni.
■■■
Kuoni/SOTC produces its own travel products for the Indian travel
Kuoni Hong Kong was formed in 1997 via a joint venture with the
market and then offers these to customers through a variety of different
■■■
sales channels. More and more people in India can afford to go travelling
cruise ship specialist P&O Travel. In 2003 these activities were taken over
these days. Group holidays are particularly popular among those get-
in their entirety by Kuoni, now one of the leading premium tour operators
ting used to the experience. These programmes, especially if they involve
in Hong Kong. Its business focuses on the high-end niche market for
foreign travel, also take careful account of the eating habits of Indian
all-inclusive group holidays in four and five-star hotels, as well as on in-
customers, which is one of the reasons why many Indians living outside
dividual travel programmes. Kuoni Hong Kong is market leader in this
India also like booking this type of holiday.
segment. Its other services include cruises and business travel. New
GZL specialises in group package tours
to other countries and within China.
It has a licence to run foreign trips.
Et-china also runs a leading internet
platform for flight tickets, hotel reservations and hire cars for individual
travellers. Since 2003 the company has
been involved in a joint venture with
China’s biggest airline, China Southern Airlines, for whom it processes all
ticket sales.
More than 70% of bookings come from
direct customer contact, the remaining
30% through external travel agencies.
www.kuonitravel.com.hk
travel ideas for East Africa, South America and the Antarctic, combined
with the launch of a new internet platform, has had a positive effect on
116 | 117
01_03_04_
K u o n i G ROUP
>>
>>
demand during the year under review, though the most important
■■■
In 2011, the Emerging Markets business (India, China/Hong Kong,
destinations for customers in these markets remain Europe, the Middle
Russia) generated turnover of CHF 222 million and EBIT of
East, Turkey and Africa.
CHF 1.3 million. Despite numerous negative external factors (the
earthquake/tsunami in Japan, North African crisis, floods in
■■■
RUSSIA
Thailand) the travel markets in India and China/Hong Kong both
managed to achieve healthy increases in earnings. Operating
Megapolus Tours sells travel products
through four of its own retail outlets
in Moscow, one in Nizni Novgorod, as
well as through other agency chains,
independent branches and the internet.
Kuoni has been active in the Russian market since acquiring UTE
losses were substantially reduced in Russia. However, restructuring
Megapolus in 2007. In the wake of the global financial crisis, the
costs continue to weigh down on results.
risk commited charter business was closed down in 2011 and the
■■■
In 2011 Austria, India, Thailand, Greece
and Spain were among the most
heavily booked destinations.
company’s business model adjusted. At the same time the brand name
the major currencies, Indian results improved in local currency terms.
was changed to “Megapolus Tours”. Activities in Russia now focus
Turnover was higher both in direct customer business and in B2B trade.
on selling our own individually tailored holidays, without hotel or flight
The Hong Kong/China market improved its results due to efficiency
risks, as well as holidays offered by other tour operators. Megapolus
gains. It also benefited from good local economic conditions, which in-
www.megapolustours.ru
company has been under restructuring from 2009 onwards. Its high-
Tours sells beach holidays, tours and ski holidays.
Despite the sharp drop in the value of the Indian rupee against all
cluded a general rise in consumers’ purchasing power.
In the Russian market the discontinuation of the previous high-risk business model, in which Kuoni took on both hotel and flight-related risks,
led to a significant decrease in turnover, at the same time the restructuring did result in substantially reduced costs. The new business model
has seen an increase in the gross profit margin and, consequently, a significant reduction in the negative EBIT result.
118 | 119
01_03_04_
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>>
■■■
VFS GLOBAL
>>
■■■
In 2011 VFS Global won a major contract from Spain to run
VACs in 35 countries. By 31 December 2011 VFS Global was operating
VFS = Visa Facilitation Services
VFS Global helps governments and embassies process travellers’ visa
526 VACs for 37 governments in 62 countries. In addition to Spain,
applications securely and efficiently. The authorities outsource the
the Austrian government awarded VFS Global a global mandate for
administrative tasks involved to VFS Global. Its support work allows
administrative visa processing in 2011. VFS Global’s head office is
the relevant authorities to make decisions about issuing visas more
now in London and its senior management is based in Singapore. The
quickly and process applications more cost effectively.
growth potential for this business in forthcoming years is estimated
to be very positive. As at the end of 2010, only about 23% of worldwide
■■■
It is no surprise that VFS Global’s business model was created in
India in 2001. Indian people require a visa for many countries when
visa processing was being outsourced to external professional service
providers. In addition, increased travel activity, especially from emerging
travelling abroad. Back then, like now, governments and their embassies
countries that have stringent visa requirements, is expected to drive
were beginning to find it impossible to cope efficiently with the com
further increase in the number of visa applications that need to be pro-
bination of growing demand for travel with stricter controls, improved
cessed. Meanwhile, additional services rendered in conjunction with
security and all the implications these factors had for visa processing. The
the visa processing itself provide an additional income stream.
VFS Global contracted in 2011 to establish 14 VACs in the Ukraine for Poland, and in 11 countries for Austria.
More VACs were opened in Finland to
process Russian applications, and new
VACs were established in Asia for South
Korea and Malaysia.
More than 41 million visa applications
have been processed by VFS Global
since 2001.
By the end of 2011, the number of employees had risen to 2 404.
idea that Kuoni India’s management had in 2001 was that it could offer
VFS Global had 46 employees in 2001.
Headcount grew to 597 by 2005.
Processing visas requires a very high standard of security and
to take on all the administrative processes that did not lie within the
■■■
embassies’ core competences. Governmental authorities would still have
quality. Over the last 10 years, VFS Global has invested in cutting-edge
to decide on the basis of documents submitted whether an applicant
data security and quality assurance technology. As a result, it can
should or should not be granted a visa. But Kuoni could take care of pre-
also process passports of all types. Thanks to its state-of-the-art technol-
paring the documents, thus relieving the embassies and cutting the time
ogy the company can even deal with biometric passports. Processing
it took to issue the visa. VFS Global was established in Mumbai in 2001.
visa applications involves working with highly sensitive personal data.
The USA was the first country to ask VFS Global to handle its external
VFS Global complies with the very highest standards in this regard,
visa processing. Three offices had then been established in India. By 2005
and in recent years has won various awards for the strength of its
ten other governments had followed suit, including the United Kingdom,
data protection. The very high priority it gives to security has been
Australia and Canada, the number of visa applications processed by
further highlighted by its investment in a state-of-the-art monitoring
VFS Global rose to 2.4 million and more than 100 Visa Application
system.
VFS Global can detect when unauthorised people enter rooms containing
sensitive data; and using geo-tracking
it can tell if courier transportation between the VAC and the embassies deviates from the prescribed route. VFS
Global also follows strict guidelines
when recruiting employees.
Centres (VACs) were opened in 11 countries. In subsequent years governThe 526 Visa Application Centres in 62 countries are run as
ments asked VFS Global to continue to expand its presence. More VACs
■■■
were opened, especially for the UK. New countries such as India, but
service centres as at 31 December 2011. They are situated according to
also numerous EU countries followed. In 2008 VFS Global initiated the
the relevant government’s requirements in specific city locations,
concept of Joint Visa Application Centres (JVAC) for “Schengen” coun-
and they work in a similar way to travel agents or job centres. Applicants
tries in India, the United Arab Emirates, the UK and Ghana. Eastern
provide the necessary documentation to the VAC. Computers, photo
European and Asian nations, including Russia, Poland, Japan and Thai
copiers and automatic passport photo machines are available at
land also joined VFS Global’s roster of customers.
the centres if required. Many VAC’s also offer showers and VIP lounges.
Applicants have often travelled a great distance to be there, so the
120 | 121
01_03_04_
01_03_05_
>>
kuoni.com
Application Centres try to make the experience as comfortable as
■■■
possible. These services are available for a fee.
graphical growth markets of the future, especially in Asia, and in the use
K u o n i G ROUP
Kuoni underwent significant change in 2011; it invested in the geo-
of new technologies. At the same time, the company’s structure was also
■■■
In countries where, for regulatory or cultural reasons, VFS Global
does not operate its own visa offices, a Facility Management Company
VFS Global had agreements with 48 Facility Management Companies (FMCs)
worldwide. FMCs run a total of 258
VACs with 1 795 employees.
changed, which is why the 2011 annual report is dedicated to the theme
of “structure”.
(FMC) is contracted to carry out VFS Global’s services. These companies
The company’s corporate website, kuoni.com, has also been completely
manage visa applications in the name of and under the supervision
■■■
of VFS Global, and they follow the same rules. Each FMC bears the cost
redesigned and renewed in line with the annual report concept. The
of its staff and operations, and earns a share of the revenues that VFS
website is conceived as a real-time interface – an interactive platform for
Global generates. These costs and the headcount at these companies are
communication between the company and the general public, investors
not included in the business figures reported for VFS Global.
and any other stakeholders who would like to understand and learn
about Kuoni. The content of this annual report is also available online.
■■■
VFS Global’s turnover is from two sources. Firstly from the visa fees
To help people find their way round all the information, a navigator –
that the company receives for its processing work from governments
an index of the whole site – is always visible at the bottom of each page.
and from the applicants; and secondly from the additional services offered
This helps users to move quickly from one subject to another within
in the VAC. In 2011 VFS Global generated turnover of CHF 176 million
the website. The site has evolved into a valuable reference work. Its con-
and operating earnings of CHF 41.9 million. VFS Global is 100% owned
tent and structure help make Kuoni comprehensible and tangible as
by the Kuoni Group. On 31 December 2011, VFS Global was still expecting
a global travel services provider.
responses from various governments for which it had tendered offers to
manage visa processing.
www.kuoni.com
122 | 123
Other cultures open new vistas
for our own lives.
fig. 10:
The labyrinthine rings of fortified walls of the Ghardaia oasis in the middle of the Algerian Sahara.
124 | 125
01_04_
Appendix
01_04_01_
K u o n i G ROUP
Agenda 2012
■■■
The Kuoni Group will be providing information
on its further business performance on the following
dates:
■■■
Half-year results
Thursday 23 August 2012
■■■
Nine-month Business Update
Thursday 8 November 2012
■■■
photography notes
All of the photographs in this chapter
are from the portfolio of the New-Jersey based geologist and photographer
George Steinmetz (b. 1957). Among
contemporary photographers, he is
the most radical explorer of uncharted territorities. A specialist in terrae
incognitae. His typical style of bird’s
eye perspectives with a narrow strip of
horizon at the top is achieved through
the use of motorised hang gliders and
ultra-light aircraft. The unique research and expedition photographer
regularly carries out commissions for
“National Geographic” and “GEO”. His
reportages have been honoured with
many international prizes.
In the first chapter of the Kuoni Annual Report 2011, Steinmetz’s breathtaking panoramas show human settlements and buildings in the context
of vast open spaces. Resonant in the
photographs is the vantage point of
the traveller who always seeks out the
foreign and remote from the comfort
and security of a safe haven.
126 | 127
06_03_
Colophon
Publisher:
■■■
Kuoni Travel Holding Ltd.
Corporate Communications
Neue Hard 7, CH-8010 Zurich
tel +41(0) 44 277 43 63
fax +41(0) 44 272 39 91
www.kuoni.com
Twitter: www.twitter.com/kuonigroup
Facebook:www.facebook.com/KuoniGroup
Idea, Development, Creative Direction:
■■■
Wolfgang Scheppe
Concept:
■■■
Wolfgang Scheppe, Remo Masala
Authors:
■■■
01: Peter Brun, Heidi Elsenhuber, Stephanie Keller,
Matthias Leisinger, Simon Marquard, Wolfgang Scheppe
02: Laurence Bienz, Alexander Brochier, René Häsler, Michael Müller
03: Alexander Brochier, Elisenda Casellas, Oliver Fischer,
Wolfgang Scheppe, Silvana Ulber
04: Wolfgang Scheppe
05: Wolfgang Scheppe
Illustrations:
■■■
Sara Codutti
Graphic Design:
■■■
Andrea Buran, Claudine Iselin, Marie Letz
Translations:
■■■
Paul Day, Fiona Elliott, Ishbel Flett, Barbara Hauß, James Knight,
Catherine Schelbert, Julia Thorson
Project Manager:
■■■
Simon Marquard
Production:
■■■
Helga Sterr
Photography:
■■■
George Steinmetz, Anonymous (Collection W.S.)
Typesetting:
■■■
Andrea Buran, Claudine Iselin, Marie Letz
Programming:
■■■
Mario Klingemann
06– appendix

Market Report 2011 - Reporting

Transcription

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