The Future of Travel. Since 1906. Annual Report - Reporting

Transcription

KUONI Annual Report 2005
The Future of Travel. Since 1906.
Annual Report 2005
Kuoni Group facts and ﬁgures
CHF million
2005
2004
3 688
3 581
847
704
596
770
831
890
595
597
827
730
3 104
669
120.4
3 047
615
127.6
26.7
24.4
14.5
49.2
27.6
–22.0
– 42.0
34.2
16.4
15.3
63.1
17.8
–19.2
74.1
Cash flow from operating activities
Investments in tangible and intangible assets
Total assets
153.7
35.3
1 659
133.7
38.2
1 820
Average number of staff (full-time equivalents)
6 943
6 451
Turnover
by Business Area
Switzerland
Scandinavia
Europe
United Kingdom & North America
Asia & Destination Management
by Activity
Leisure Travel
Destination Management
Earnings before interest, taxes and amortisation of goodwill (EBITA)
by Business Area
Switzerland
Scandinavia
Europe
United Kingdom & North America
Corporate
Net result
Information for investors
Performance of Kuoni shares (CHF )
KUONI, SPI
575
550
525
500
475
450
425
400
12/03
02/04
04/04
06/04
08/04
10/04
12/04
02/05
CHF
Cash flow
from operating activities
per registered share A
per registered share B
Net result
Equity
Dividend
Nominal value reduction
Stock market prices
per registered share B high
low
at year-end
Annual trading volume in CHF million
Stock market capitalisation as at December 31 in CHF million
1)
04/05
06/05
08/05
10/05
12/05
2005
2004
10.32
51.59
–2.87
–14.33
38.88
194.39
01)
01)
2.801)
14.001)
560
459
544
1 294
1 741
9.01
45.07
4.98
24.88
44.28
221.42
0
0
7.00
35.00
547
411
500
909
1 600
Proposal of the Board of Directors to the General Meeting of Shareholders. Subject to definitive approval by the General Meeting of Shareholders.
Reykjavik
Oslo
Edinburgh
Stockholm
Copenhagen
London
Dorking
New York
Los Angeles
Amsterdam
Ghent
Prague
Salzburg
Vienna
Paris
Budapest
Zurich
Geneva
Genoa
Nice
Rome
Madrid
Barcelona
Atlanta
Orlando
Miami
Hawaii
Nai
M
Ar
Cape Town
A brief portrait of the Kuoni Group
Kuoni Travel Holding Ltd. is one of Europe’s leading tourist travel corporations, and
generated total turnover of CHF 3 688 million in 2005. Its head office is in Zurich,
Switzerland, where Alfred Kuoni, a native of Chur in the east of the country, founded
the company back in 1906. Kuoni is thus celebrating its centenary in 2006.
Over the years, the Kuoni Group has steadily and systematically developed its position in the world travel market, and currently has
branch operations in 27 countries in Europe, Asia, Africa and North America. Some 23 % of total turnover is generated in Switzerland,
making Kuoni the local market leader. With a worldwide workforce that numbered 6 943 employees (in full-time-equivalent terms)
in 2005, the Kuoni Group is active in the Leisure Travel and Destination Management fields. Having been named “World’s Leading
Tour Operator” for the seventh time in 2005 in the industry’s annual World Travel Awards, Kuoni aims to be and remain the bestestablished and most successful international premium and specialist tour operator in the tourist travel field.
ockholm
agen
Moscow
Prague
enna
Budapest
Sapporo
Beijing
Kathmandu
Shanghai
Dubai
Sendai
Seoul
Tokyo
Nagoya
Osaka
Fukuoka
Guangzhou
New Delhi
Hong Kong
Taipei
Mumbai
Bangkok
Our Group
Colombo
Nairobi
Mombasa
Arusha
Singapore
Head Office
Leisure Travel
Sales Office
Business Travel
Representation Office
Consultancy Office
As at March 2006
Cape Town
Annual Report 2005
Group turnover of CHF 3 688 million up 3 % on the prior year (2004: CHF 3 581 million)
2.4% increase in operating cost (2004: 1.4 %)
EBITA slightly below prior-year level at CHF 120.4 million (2004: CHF 127.6 million)
EBITA margin declined from 3.6 % (in 2004) to 3.3 %
Net result of CHF – 42.0 million (2004: CHF 74.1 million)
Cash flow from operating activities of CHF 153.7 million (2004: CHF 133.7 million)
Board of Directors will recommend that the nominal value of the Kuoni registered share A
be reduced by CHF 2.80 from CHF 3.– to CHF 0.20 per share and the nominal value of the
Kuoni registered share B be reduced by CHF 14.– from CHF 15.– to CHF 1.– per share
Equity of CHF 581.8 million and a balance sheet equity ratio of 35.1 %
Contents
Facts and figures
A brief portrait of the Kuoni Group
4
Message to the shareholders
8
Strategic outlook
12
Organisation
12
Business model
14
Group structure
15
Board of Directors
16
Group Executive Board and
Group Management Board
19
Reporting
19
Group
25
SBU Switzerland
30
SBU Scandinavia
33
Trend researcher interviews
43
Reporting
43
SBU United Kingdom & North America
47
SBU Europe
51
SBU Asia & Destination Management
55
Market environment
55
European travel sector
60
Corporate development
60
Information technology
65
Corporate responsibility
66
Personnel
68
Environment
70
Social commitment
72
Kuoni glossary
74
Addresses
76
Agenda
Kuoni’s first hundred years
Publication details
Enclosures
Financial reporting and
corporate governance
Traditions and horizons
Dear shareholder,
It was back in 1906 that Alfred Kuoni opened his first “travel
bureau” on Zurich’s Bellevue square. His first group tour took
customers up the Üetliberg, the city’s local mountain with a
summit elevation of just under 900 metres, at a price of one
Swiss franc. Today, as we celebrate the centenary of those
founding events, Kuoni Travel Holding Ltd. is one of Europe’s
leading tour operators, with 6 943 employees (in full-time
equivalents) all around the world.
Having seen vigorous growth the year before, the global tourism
industry showed development in 2005 that was more modest,
but was also more stable than it had been in earlier years. According to the UN World Tourism Organization (UNWTO), total
traveller numbers rose 5.5 % in 2005, again exceeding the long-
Left: Andreas Schmid, Chairman of the Board of Directors
Right: Armin Meier, Group Chief Executive Officer
term average of 4 %. The Kuoni Group achieved growth in
2005 that was largely in line with these overall trends.
Kuoni’s Swiss business faced an increasingly price-sensitive marThe strongest industry growth was seen in tourism to Africa, and
ket in 2005. In contrast to 2004, the number of special offers
to Kenya and South Africa in particular. In Asia, the effects of the
was deliberately reduced in the family travel segment. Strategic
tsunami disaster of December 2004 depressed travel to Thailand,
Business Unit Scandinavia achieved a further substantial improve-
the Maldives, Sri Lanka and Indonesia. But some Asian nations,
ment in its performance and reported a favourable earnings
including China and India, reported double-digit growth. The
result. Strategic Business Unit Europe generated turnover that
more modest increase seen in Europe was still slightly above the
was broadly at prior-year levels. Strategic Business Unit United
long-term average, the UNWTO reports. Northern, Central and
Kingdom & North America sustained a turnover decline, owing
Eastern Europe were among the prime engines here. The
largely to the loss of revenue from the Thailand, Maldives and
UNWTO expects a further year-on-year increase of 4–5 % in tou-
Sri Lanka which have long been among Kuoni UK’s top travel
rist travel volumes for 2006.
destinations. North American operations saw increased demand;
but with its high proportion of fixed costs, US subsidiary Intrav
The Asian tsunami and its repercussions occupied Kuoni exten-
still posted an earnings result that fell far short of expectations.
sively in 2005, especially in the first six months. We are convinced
In view of this, the decision was taken to dispose of the unit
here that a positive approach is the only appropriate response,
at the end of 2005. Strategic Business Unit Asia & Destination
for the people affected and the travelling public. In many of the
Management (the latter renamed from Incoming Services and
regions concerned, the rebuilding has been swift – thanks in no
restructured on January 1, 2006) derived above-average benefit
small part to the energies of the local populations – and most
from the market growth in India and China and from the rapid-
facilities have been restored. So Kuoni’s prime task now is to
ly-developing inbound business to Kenya and South Africa.
resume marketing these attractive destinations as it had done
before. We are pleased to accept the challenge.
4
With the broad geographical spread of its operations, the
nation. Strengthening its already-leading position in the inter-
Kuoni Group raised its total turnover for the year to
national premium and specialist tour operating segment is a fur-
CHF 3 688 million, a 3.0 % increase on 2004. Earnings before
ther strategic objective of the Kuoni Group.
interest, taxes and amortisation of goodwill (EBITA) amounted
to CHF 120.4 million, a 5.7 % decline on its prior-year level.
All Kuoni’s endeavours are devoted to achieving profitable
Excluding the adverse impact of the tsunami disaster, which
growth, organically or through selective acquisitions that
is estimated to have eroded over CHF 20 million from the
sustainably enhance its earnings power and potential. With
earnings result, Group EBITA for 2005 would have been more
this strategy as its basis, the Kuoni Group regularly subjects its
than 10 % up on its prior-year equivalent.
business portfolio to a rigorous review. In the course thereof,
the Group concluded that its Kuoni Reisen GmbH and Intrav
The net result for the year fell from the CHF 74.1 million of
subsidiaries, based in Germany and the USA respectively, were
2004 to CHF –42.0 million. The decline is due partly to an im-
unlikely to achieve sustainably satisfactory earnings in the fore-
pairment and provisions totalling CHF 98.2 million (after taxes)
seeable future owing to an absence of the requisite economies
in connection with Brava Holiday-Club AG, and partly to a
of scale. In view of this, Kuoni Reisen GmbH was sold to Otto
CHF 58.3 million book loss on the sale of Intrav, the Group’s
Freizeit und Touristik GmbH in May 2005, and Intrav was sold to
US-based subsidiary. Cash flow from operating activities
UK-based First Choice Holidays PLC in January 2006.
amounted to CHF 153.7 million (prior year: CHF 133.7 million),
further strengthening Kuoni’s cash position. Free cash flow
The Board of Directors also resolved in February 2006 to write
showed highly positive trends, increasing from CHF 100.8 mil-
off Kuoni’s 35 % minority shareholding in Brava Holiday-Club AG
lion to CHF 120.5 million. The Board of Directors will recom-
and provisions in connection therewith, with both amounts to
mend to the 2006 Annual General Meeting of Shareholders
be debited to the 2005 financial statements. These actions were
that the nominal value of Kuoni registered share A be reduced
taken in view of the massive overindebtedness of the Ferien-
by CHF 2.80 (from CHF 3.– to CHF 0.20) per share and the
verein Poscom, Bern, the majority shareholder in Brava Holiday-
nominal value of the Kuoni registered share B be reduced by
Club AG with a 65% equity stake, following value adjustments
CHF 14.– (from CHF 15.– to CHF 1.–) per share, for a total
the latter was forced to effect on a large number of its nine
capital reduction of CHF 44.8 million.
hotel facilities in and outside Switzerland.
The Board of Directors and the Group Executive Board continue
Having streamlined its portfolio, the Kuoni Group is now well
to consistently pursue the strategy of minimal vertical integra-
positioned to take full, active and targeted advantage of future
tion, to meet the strong demand for individualised and flexible
opportunities that arise in the growing tourist travel sector. In
solutions. Kuoni focuses on the Leisure Travel and Destination
this regard, Kuoni is keeping a particularly close eye on develop-
Management sectors. Leisure Travel is concerned with organis-
ments in the Internet field. It is an integral part of Kuoni’s strat-
ing, distributing and providing personalised advice on vacation
egy of achieving profitable growth to extend and refine this dis-
travel products, while Destination Management embraces all the
tribution channel over the coming years, to play an active role in
activities involved in organising land arrangements, seminars
its rapid development and further expand its position in this
and congresses, incentive travel and sports events at the desti-
market. As part of these endeavours, Kuoni acquired Dutch-
5
based discovery holiday specialist Avontuur.nu Topholding B.V.,
Once again, our employees put in an excellent performance for
which is strongly positioned in the online and call-centre direct
the Kuoni Group, and deserve our gratitude and appreciation
sales segment, in December 2005.
for all their impressive service and commitment throughout the
year. We also extend our deepest thanks to our shareholders
The investments needed to implement this strategy will be largely
and our customers for the loyalty they have shown and the con-
directed at acquisitions to strengthen the Group’s Destination
fidence they continue to place in the Kuoni Group. The Board of
Management activities and at acquiring new technologies. By
Directors and the Group Executive Board view these both as a
focusing on selective additions to its product and services range,
confirmation that Kuoni is on the right track and as an incentive
on specific market knowledge and on technology, Kuoni can
to continue the Group’s clear and targeted development, and
differentiate itself even more clearly from its competitors, and thus
will be doing their utmost to further enhance its overall dyna-
further consolidate its position as a premium service provider.
mism and energy for growth.
The Group Executive Board was enlarged in July 2005 with the
2006 marks the centenary of Kuoni’s foundation. Reaching the
appointment of Stefan Leser as Executive Vice-President Corpor-
age of 100 owes more to good fortune than to achievement –
ate Development. The creation of this new function, which is
and certainly not one for which our present workforce should
concerned primarily with developing sustainable innovation
take sole credit. If such a milestone has any meaning at all,
and growth strategies, underlines the importance that Kuoni
it is through the lessons we can learn from the experiences of
attaches to the Group’s further strategic development. Thomas
the past. The journey that began in tiny premises on Zurich’s
Stirnimann, the former Head of Kuoni Switzerland, left the
Bellevue square in 1906 has led Kuoni to the top of the Euro-
Group in spring 2005. His successor Roberto Luna has been
pean tourist travel industry. And the dynamic, emotional and
appointed to the Group Management Board. Zubin Karkaria
moody tourism business has taught us, over the past hundred
was named CEO of Kuoni India, succeeding Ranjit Malkani.
years, that success can only be achieved through a constant wil-
Peter Diethelm stepped down as Executive Chairman of SBU
lingness to innovate and adapt.
United Kingdom & North America at the end of June, bringing
a 42-year Kuoni career to an end. The operational management
Kuoni today has everything it needs to continue its success: the
of Kuoni UK was entrusted to Sue Biggs. Rolf Schafroth was
people, its skilled personnel and its reliable partners around the
appointed Head of Destination Management worldwide effec-
world, the knowledge, the resources and the market. We are
tive January 1, 2006, with simultaneous appointment to the
thus excellently poised and positioned to be the world’s leading
Group Management Board. Bojan Jokic succeeded Konrad Iten
quality tourist travel group.
as Group Chief Information Officer on March 1, 2006, and also
becomes a member of the Group Management Board.
Hans Lerch relinquished his seat on the Board of Directors. The
Board of Directors will propose to the Annual General Meeting
of Shareholders of May 18, 2006, election of Raymond D. Web-
6
ster, former CEO of easyJet airline plc., as a new Member of the
Andreas Schmid
Armin Meier
Board of Directors.
Chairman of the Board of Directors
Group Chief Executive Officer
7
Strategic outlook
Ambitious goals ahead
+++ Asia, distribution
and positioning are key
drivers of growth +++
If globally-active travel corporations have largely limited them-
In view of the above, Kuoni has good reason to be optimistic as
selves in the past to economic and (possibly) political develop-
it looks to its business future. The Kuoni Group has all the skills
ments in the world’s various regions when planning their activi-
and resources it requires to take maximum advantage of the
ties, further factors have entered the picture over the last few
major changes that will permanently shape our industry over the
years. Prominent among these are terrorist actions and epidemics,
coming years. Both the expertise that Kuoni has developed over
which often wield an immediate and highly emotional impact
its first century in responding to its customers’ ever-changing and
and frequently have unexpected temporary effects on both
ever-growing expectations and its knowledge of its markets and
customer demand and subsequent product offers. The same is
destinations are central corporate assets that will retain all their
true of natural disasters to some extent. But customers and the
value in the new Internet age. These assets also provide a compe-
travel sector are more familiar with these than they are with the
titive edge that should enable Kuoni to consolidate and further
newer phenomena of epidemics and terrorist attacks. One thing
expand its position as a global leader in the travel industry,
is clear: the challenges posed by these exogenous factors have
through both organic growth and selective acquisitions. With a
increased substantially over the past few years. And how its top
turnover growth goal that is above the projected tourist industry
management deals with them will have a major influence on a
average and the aim of raising its EBITA to effect a further size-
company’s reputation, its leadership and its brands.
able improvement in its earnings performance, Kuoni has set its
sights deliberately high. But this only reflects the confidence that,
This overall global environment is further interlinked with a vast
with all its many strengths, the Kuoni Group has the potential to
range of demographic and socio-cultural developments. The
secure an above-average portion of the further growth in markets
complexity of these is often viewed as a further business threat.
and demand, and thereby increase its overall market share. And,
Seen in isolation, however, most of these changes are far from
while the emphasis in these endeavours will be on organic growth,
new. And, on closer inspection, many of them offer business
Kuoni also intends to develop through selective acquisitions with
opportunities, too. The rise of the Internet is perhaps the best
which it can tap into new markets or market areas, or cover exist-
example here. The increasing popularity of online communi-
ing ones more effectively.
cations and transactions is leading to major and now irreversible
changes in customer tastes. But it also allows a travel corporation
Kuoni expects an increase in 2006 in the general economic
to know its customers and their needs better than ever before;
growth that has been seen and felt recently in its core European
and it accelerates procedures and exchanges with suppliers, and
and Asian markets. The travel sector in general, and Kuoni as
simplifies collaboration within the corporate organisation.
one of its global leaders, should derive above-average benefit
from this economic growth, a trend that is likely to be driven
primarily by the following factors:
8
Strategic outlook
Asia: massive growth potential
It is a complexity with which the Internet alone – a simple sales
platform – is unable to cope. Customers also need a human trav-
While it currently contributes only some 7 % of total Group turn-
el consultant, with their extensive experience and their specialist
over, Asia is of substantial strategic importance to Kuoni. As one
expertise. As a travel organisation providing expert advice and
of the industry’s pioneers, Kuoni has been active for years –
assistance, Kuoni offers its customers an added value they would
decades, in some cases – in the growing Asian markets. And
not receive if they booked their vacation solely online. A cus-
with the steady development it has pursued over that time, the
tomer who wants not just an air ticket, a rental car or a ticket
Kuoni Group is now very well anchored in these market areas: a
to a musical but a full travel arrangement with several individual
position which, given the relatively high regulation of the Asian
components, and who also seeks the assurance of optimum
markets, could prove invaluable in further developing business in
value for money, will not want to forgo such advice and support.
the region. Kuoni expects to record sizeable percentage growth
As a customer-focused travel corporation, Kuoni offers the wide
both in India, where it is active in all business segments, and in
experience, the specific knowledge of destination regions and
China, where the company has been the first non-Chinese tour
the comprehensive network of connections to ensure that the
operator to obtain a licence for inbound and domestic business.
assistance it provides represents genuine added value.
The opening of offices in mainland China, commenced with
Kuoni’s strategy here is clear: it intends to make full and opti-
Beijing and Shanghai in 2005, will be continued in 2006 to stead-
mum use of all the possibilities the Internet offers as an informa-
ily tap into the Chinese market via the country’s major cities.
tion and communications tool, and thereby align the Group’s
As its long-term objective, Kuoni aims to further boost the
consultancy-intensive products even more closely to specific cus-
strong growth in the Chinese market by securing the licence it
tomer needs. Kuoni thus intends not to replace its established
desires to conduct outbound business, and to thereby benefit
distribution and communications structures but to meaningfully
from the extensive potential offered by Chinese travellers seeking
supplement them with the new Internet channels. Kuoni is con-
a European vacation experience. While establishing its Chinese
vinced that it can best meet the varied needs of its customers by
operations is still expected to take some time and patience,
appealing to them through all available channels and making its
Kuoni already enjoys the leadership of the Indian travel market.
products as accessible as possible in both time and spatial terms.
In view of this, and of the substantial long-term potential of both
After all, the same customer who requires expert advice one day
the inbound and the outbound sectors, the Kuoni Group intends
to put together a longer travel project may find that all they
to maintain a broad-based strategy for its Indian operations.
need for their next trip – a short city break – is access to a state-
Kuoni is also seeking to further enhance its already-strong posi-
of-the-art Internet platform on which they can book their flight.
tion in the Japanese market. Having built up its business-to-
Kuoni will be spending a considerable two-digit million amount
business operations over more than 40 years now, the Kuoni
in 2006 on making its online facilities even more convenient for
Group now aims to broaden its Japanese activities by enlarging
its customers’ use.
the range of its individual travel products and placing greater
emphasis on exclusive travel arrangements for specialist groups.
Positioning: visual presence in a pivotal role
Distribution: new online opportunities
While some markets – such as China – still offer massive business potential for Kuoni, in other and more mature markets it is
The Internet indisputably offers the travel industry outstanding
facing fierce predatory competition. In both cases, however, a
opportunities to communicate and distribute its products and
strong local visual presence is crucial to commercial market suc-
services. Online bookings may still only account for some 7 % of
cess. With the rise of the Internet, brands have become even
all European reservations; but the latest studies suggest that this
more vital as familiar navigation aids in a sea of competing pro-
volume is set to grow by half as much again in 2006. So the
ducts. And ultimately, the only companies that survive will be
Internet looks set to continue its rapid rise as an individual travel
those whose brands act as lighthouses, signalling their product
booking tool. For its core business of selling vacation products,
and service positioning in a clear and unmistakable way. In view
however, Kuoni does not expect its traditional distribution chan-
of this, the Kuoni Group aims to devote substantial funds to
nels – travel agencies, call centres and similar – to be completely
brand cultivation, and intends to use its own centennial celebra-
eclipsed by the new Internet portals. This is because, while the
tions to further strengthen and extend the familiarity and the
Internet is becoming increasingly convenient as a vacation book-
acceptance of its flagship Kuoni brands.
ing tool, customers’ holiday wishes and ideas are growing more
and more complex, too.
9
10
11
Business model
Optimised structures
for Destination Management activities
+++ Our core
competence is the
personalised advice +++
With a century of industry experience, the globally-active
Leisure Travel
Kuoni Group possesses an incomparable wealth of expertise
as a provider of Leisure Travel products and a specialist in the
Organising and distributing Leisure Travel products and provid-
Destination Management business.
ing customers with personalised Leisure Travel advice are
Kuoni’s core competencies. The Group’s Leisure Travel activities
account for 82 % of total turnover, making them its prime
business segment. Kuoni’s Leisure Travel business is centred on
tour operating: organising Leisure Travel of all kinds, as all-in
packages or for individual customers. Kuoni’s highly-specialised
tour operating teams select the destinations (based on market
demand), plan the products and conclude agreements with
agents or directly with the providers for the facilities and services desired: hotels, transfer arrangements, excursions and
more. The Kuoni Group offers its Leisure Travel products via
various distribution channels: its own travel agencies, agents,
call centres and the Internet. The last of these, the Group’s websites, are being constantly refined and permit customers to
individually browse and book Kuoni’s broad range of products
24 hours a day. Online reservations have gained substantially in
importance over the past few years. But these newer sales facilities are always operated in conjunction with traditional distribution channels.
In most of its Leisure Travel markets, the Kuoni Group is positioned in the mid-to-upper price segments with its premium
Kuoni brand. In some countries, Kuoni operates via a well-established local brand. The Kuoni brand was introduced to the
Dutch market in 2005 with sizeable success, and was further
launched onto the Indian market at the beginning of 2006.
12
Organisation
Kuoni’s Destination Management activities, which were known
as Incoming Services until the end of 2005, generate 18 % of
the total turnover of the Kuoni Group. Kuoni’s professional
Destination Management services are focused on organising and
advising on land arrangements for groups, individual travellers,
seminars, congresses, special interest and incentive tours and
sports events. In providing these services, Kuoni offers the many
advantages that derive from its extensive network of Kuoni
Destination Management operations, which extend to 14 offices
in Europe, 5 in North America, 33 in India (22 of them representative offices) and 4 in Africa, each responsible for ensuring
the provision of the local services at its destination. A further
15 sales offices are located elsewhere around the world. Kuoni
Destination Management employs 1 355 personnel in 53 branch
operations, all taking optimum care of customer wishes and
needs. While Destination Management Europe puts a focus on
assisting clients from Asia (primarily Japan), the Middle East,
India and North America, AlliedTPro – the Group’s US-based
subsidiary – largely aligns its products to customers from Europe,
Asia and South America. The network’s Indian operations,
together with those in Kenya, Tanzania and South Africa, deal
mainly with European guests.
Kuoni restructured its Destination Management organisation in
January 2006 to better exploit sales and processing synergies
worldwide.
13
Group structure
Board of Directors
Chairman of the Board of Directors
Andreas Schmid
Corporate
Communications
Assurance
Management
Corporate
Counsel
Armin Meier 1)
Leisure Travel
Leisure Travel
Leisure Travel
Leisure Travel Europe, Asia &
Switzerland
Scandinavia
United Kingdom
Roberto Luna 2)
Fons Brusselmans2)
Sue Biggs2)
Reto Wilhelm 1)
SBU Switzerland
SBU Scandinavia
SBU United
Kingdom
SBU Europe
Switzerland
Kuoni Reisen AG
Edelweiss Air AG
Frantour Suisse SA
Manta Reisen AG
PRZ AG
- Privat Safaris
- Rotunda Tours
- Intens Travel
Railtour Suisse SA
- ACS Reisen
Denmark
Kuoni Scandinavia AB
United Kingdom France
Kuoni Travel Ltd.
Voyages Kuoni SA
- Voyages
Jules Verne
Netherlands
Kuoni Travel
Nederland BV
- Royal Hansa BV
- African Holidays
- Avontuur.nu
Norway
Reisetorget AS
Sweden
Nova Airlines AB
Italy
Kuoni Gastaldi
Tours S.p.A.
Iceland
Langferdir ehf
Spain
Viajes Kuoni SA
SBU Asia
India &
Middle East
Kuoni Travel
(India) Ltd.
- Visa Facilitation
Services
China,
Hong Kong
Kuoni Travel
(China) Ltd.
Internal
Audit
Corporate
Development
Finance
Information
Technology
Stefan Leser 1)
Max E. Katz 1)
Bojan Jokic 2)
Corporate
Human
Resources
Ursula MeierBergundthal 2)
Corporate
Controlling
Business
Analysis
Corporate
Treasury
Mergers &
Acquisitions
Investor
Relations
Austria
Reisebüro Kuoni
Ges.m.b.H
Restplatzbörse
Ges.m.b.H
General Counsel
SBU Destination
Management
Rolf Schafroth 2)
Europe
Kuoni Reisen AG
USA
AlliedTPro Inc.
Africa
Private Safaris
(EA) Ltd., Kenya
Kuoni Private
Safaris Pty. Ltd.,
South Africa
1)
2)
Group Executive Board
The different shades correspond
to the financial reporting structures.
As at March 2006.
14
Organisation
Board of Directors
Andreas Schmid, Chairman
Chairman of the Board of Directors of Barry Callebaut AG, Zurich (until 8.12.2005);
Vice-Chairman of the Board of Directors of Barry Callebaut AG, Zurich (as of 8.12.2005);
Chairman of the Board of Directors of Unique (Flughafen Zurich AG), Zurich;
Member of the Advisory Board of Credit Suisse Group, Zurich.
Current term expires in 2008.
Pierre Boppe, Vice-Chairman
President of The Stein Group, Barcelona;
President of Luxury Lifestyle Hotels & Resorts, Barcelona;
Member of the Board of Directors of The Hongkong & Shanghai Hotels Ltd., Hong Kong;
Member of the Board of Directors of BlueOrchard Finance SA, Geneva.
Nils Hagander
Member of the Board of Directors of a-connect (Switzerland) AG, Zurich;
Chairman of the Board of Directors of air-connect AG, Stansstad;
Member of the Board of Trustees of the Pestalozzi Foundation, Zurich;
Member of the Board of Directors of Secheron Hasler Holding SA, Glarus.
David Schnell
Business Consultant;
Member of the Board of Trustees of the Kuoni and Hugentobler-Foundation, 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 Board of Directors of SIG Holding AG, Neuhausen.
Henning Boysen
Deputy Chairman of the Board of Directors of Gate Gourmet USAS, Istanbul (until March 2006);
Chairman of the Board of Directors of PARCON AS, Copenhagen (as of 1.1.2006);
Member of the Board of Directors of APODAN NORDIC AS, Copenhagen (as of 1.1.2006);
Member of the Advisory Board of the Ecole hôtelière de Lausanne (EHL), Lausanne;
Member of the Advisory Board of the Copenhagen Business School, Copenhagen.
Annette Schömmel
Founder and Vice-Chairman of the Board of Directors of arthesia AG, Zurich.
As at March 2006
Board members’ detailed CVs can be found on the Group’s website: www.kuoni.com.
15
Group Executive Board
The Group Executive Board from left to right: Stefan Leser, Executive Vice-President, Corporate Development; Armin Meier, Group Chief Executive Officer;
Max E. Katz, Executive Vice-President, Chief Financial Officer; Reto Wilhelm, Executive Vice-President, Leisure Travel Europe, Asia & Destination Management.
16
Organisation
Armin Meier
Swiss, born 1958
Having initially trained as a primary school teacher and spent some
years in the teaching profession, Armin Meier embarked on a
career in IT and consulting which included a spell with DEC Digital
Equipment Corporation AG and a period running his own consultancy company. Parallel to this, he obtained a university of applied
sciences degree in IT engineering. After earning an Executive MBA
from St. Gallen University, he was appointed CEO of ABB PTI AG
in Baden, Switzerland; and in 1998 he moved on to accept the
same position at Atraxis AG, Zurich. Four years later he joined the
Migros Federation of Cooperatives as a member of its executive
committee, with overall responsibility for logistics and IT. He has
been Kuoni Group CEO since February 2005.
Max E. Katz
Executive Vice-President, Chief Financial Officer
Swiss, born 1955
After graduating in business economics from the Zurich University
of Applied Sciences, Max E. Katz started his professional career
with Unilever as a brand manager in 1978. From 1981 to 1987
he served as a regional controller for Jacobs Suchard AG both in
and outside Switzerland. He then joined the executive board of
Effems AG as the company’s finance director. In 1991 he moved
to Hürlimann Holding AG to become vice-president finance and
a member of the executive board. He joined Kuoni as a member
of the Group Executive Board and CFO in 1995.
Stefan Leser
Executive Vice-President, Corporate Development
German, born 1967
Having graduated in business administration (specialising in travel
and transportation), Stefan Leser initially held numerous functions
at companies in the German travel sector. After completing an
MBA in finance and strategic management at the Augusta State
University of Georgia, he joined Atraxis AG in 1999 as executive
vice-president business development, marketing and sales. He later
moved to EDS as vice-president EMEA transportation, and went on
to become CEO of EDS Switzerland AG and head of sales and
distribution for Central and Eastern Europe. He joined Kuoni in July
2005 as a member of the Group Executive Board, in the newlycreated post of Executive Vice-President Corporate Development.
Reto Wilhelm
Executive Vice-President, Leisure Travel Europe,
Swiss, born 1961
After graduating from St. Gallen University, Reto Wilhelm gained
his first experience of the travel and tourism business in Kuoni’s purchasing operations in 1986. He left three years later to join Marc
Rich + Co. AG. From 1990 to 2001 he was with the SAirGroup, where
he held various management functions including general manager
network planning and fleet development. He was named route manager Middle East and Africa in 1998 and route manager North and
South America (based in New York) a year later. In 2001 he was
appointed to Swissair’s executive management, with overall responsibility for sales and airport organisations worldwide. He returned to
Kuoni in 2002 to become Executive Vice-President SBU Leisure Travel
Europe. He assumed additional charge of SBU Destination Management in 2004, and of SBU Asia in May 2005.
Sue Biggs
Roberto Luna
British
Managing Director, SBU United Kingdom
Member of the Group Management Board since 2001
Italian
Managing Director, SBU Switzerland
Fons Brusselmans
Ursula Meier-Bergundthal
Belgian
Managing Director, SBU Scandinavia
Swiss
Senior Vice-President, Corporate Human Resources
Bojan Jokic
Rolf Schafroth
Serbian-Montenegrin
Chief Information Officer
Swiss
Managing Director, SBU Destination Management
17
18
Reporting
Group
A strong performance in a difficult environment
+++ Swift and flexible
responses to the
challenges faced +++
Results substantially affected by tsunami repercussions
Slight EBITA decline
Destination Management restructured
After three far-from-easy years, 2004 brought a tangible recov-
lion, thanks to the higher turnover volume. Gross profit margin
ery in business volumes, and the global tourism sector seemed
slipped slightly from 22.9 % to 22.5 %, owing largely to the
to be back on track for sustainable and profitable growth. Until,
interim sale of the German retail business.
that is, large parts of Asia were devastated by the tsunami
disaster of December 26. Faced with the recent accumulation
Earnings before interest, taxes and amortisation of goodwill
of impossible-to-influence factors such as terrorist attacks and
(EBITA) amounted to CHF 120.4 million, a 5.7 % decline on
natural disasters, travellers and the tourism industry alike have
2004. Excluding the adverse impact (estimated at over CHF 20
come to live with exceptional events. But the Asian tsunami
million) of the tsunami disaster on the operating result, EBITA
disaster was to have long and extensive repercussions.
for 2005 would have been an improvement of more than 10 %
on the previous year.
Since a higher proportion of its turnover is generated in Southeast Asia than is the case with most of its competitors, the
The net result declined from the CHF 74.1 million of 2004 to
Kuoni Group felt the effects of the tsunami disaster especially
CHF – 42.0 million. This development is attributable to the
hard. Business in these regions also took longer to recover than
impairment and provisions effected in connection with Brava
had initially been expected, and this had a particularly strong
Holiday-Club AG and the loss incurred on the sale of the
impact on 2005 first-half results. With the broad geographical
US-based Intrav subsidiary. Cash flow from operating activities
spread of its overall portfolio, however, and through its reassign-
amounted to CHF 153.7 million (prior year: CHF 133.7 million),
ment of flight capacities to other vacation regions, the Kuoni
further strengthening Kuoni’s cash position. Free cash flow
Group responded swiftly and flexibly to these worsened market
showed highly positive trends, increasing from CHF 100.8 mil-
conditions, and still delivered an encouraging operating result.
lion to CHF 120.5 million.
Despite the decline in demand for destinations in Southeast Asia
The Board of Directors will recommend to the Annual General
and the business impact of the tsunami disaster, which has been
Meeting of Shareholders that the nominal value of Kuoni registered
estimated at over CHF 100 million, the CHF 3 688 million total
share A be reduced by CHF 2.80 (from CHF 3.– to CHF 0.20) per
Group turnover recorded for 2005 was a 3.0 % improvement on
share and the nominal value of the Kuoni registered share B be
its prior-year equivalent. Year-on-year organic growth amounted
reduced by CHF 14.– (from CHF 15.– to CHF 1.–) per share, for a
to 1.9 % (currency movements +0.2 %, acquisition and divesti-
total capital reduction of CHF 44.8 million.
ture effects +0.9 %). Gross profit rose 1.1 % to CHF 828.0 mil-
19
The core business of the Kuoni Group is divided into five Stra-
SBU United Kingdom & North America experienced less-than-
tegic Business Units (SBUs): SBU Switzerland, SBU Scandinavia,
satisfactory business developments for both its markets in
SBU United Kingdom & North America, SBU Europe and SBU
2005. As a result, turnover for the year fell 6.9 %, from the
Asia & Destination Management.
CHF 827 million of 2004 to CHF 770 million. Business at
Kuoni UK was hit particularly hard by the repercussions of the
The various business units reported the following turnover
Asian tsunami disaster on its top destinations in Thailand, the
trends:
Maldives and Sri Lanka, and results were further depressed by
adverse currency movements. Persistently intense competitive
CHF million
2004
900
800
890
847
pressures also prompted a reduction in gross profit margin, and
2005
this led in turn – despite strict cost control – to a sizeable EBITA
831
827
770
700
730
704
600
595
decline. While 2005 brought an increase in demand, earnings
for Kuoni North America remained substantially below expectations because of the high fixed costs of these operations. Fol-
597 596
500
lowing a strategic reappraisal, the Kuoni Group decided to dis-
400
pose of its US-based Intrav subsidiary at the end of 2005.
300
200
SBU Europe, which had undergone substantial expansion the
100
previous year, reported annual turnover that was virtually
unchanged from its 2004 level at CHF 596 million. Excluding
0
Switzerland
Scandinavia
UK & North
America
Europe
Asia &
Destination
Management
the German retailing business sold in the course of 2005, this
represents year-on-year turnover growth of 2.1 %. The weak
demand in the Austrian retail market and the slight declines in
SBU Switzerland, which was faced with a stagnant and
tour operating in France and Spain were offset by positive
largely saturated overall market, sustained a 4.8 % decline in
business developments in Italy and the Netherlands. The nega-
its annual turnover to CHF 847 million. The decline in the
tive mix effect depressed gross profit margin from 22.5 % (or
family travel segment was due to the decision not to offer
20.7 % net of the subsequently-sold German retailing business)
early-booker discounts in the Helvetic Tours beach holiday
of 2004 to 19.5 %. Efficient cost management limited the de-
business and to negative external influences. While gross profit
cline at EBITA level to 5.2 %, from the CHF 15.3 million of the
margin rose from 26.8 % to 28.7 %, EBITA declined from the
prior year to CHF 14.5 million.
CHF 34.2 million of 2004 to CHF 26.7 million.
SBU Asia & Destination Management derived above-average
SBU Scandinavia continued to grow and posted highly encour-
benefit from the rapid growth of the Chinese and Indian mar-
aging results, despite adverse currency trends. With operating
kets and from the steep increases in inbound business to Kenya
costs remaining largely at prior-year levels, turnover was in-
and South Africa. Once again, annual turnover was a substan-
creased 18.3 % to CHF 704 million, thanks to strong demand in
tial improvement on its prior-year level, up 13.8 %. At 27.7 %,
all markets, and in Norway in particular. While gross profit
Asia reported particularly strong year-on-year growth. With
margin fell from 25.7 % to 22.9 %, the CHF 24.4 million EBITA
gross profit margin up from 18.5 % to 20.2 % and a dispropor-
for the year was a 48 .8 % increase on the CHF 16.4 million of
tionately low increase in operating cost, EBITA was substantially
2004, owing largely to the higher business volumes and strict
increased from the CHF 17.8 million reported in 2004 to
cost control.
CHF 27.6 million. Both business segments made their contributions to this encouraging result.
20
Reporting
Group
The charts below show a breakdown of total turnover by SBU
Earnings before interest, taxes and amortisation of good-
and by activity:
will (EBITA) declined 5.7 % in 2005 from the CHF 127.6 million
of the previous year to CHF 120.4 million. This gives a turnoverbased EBITA margin of 3.3 % for the year (compared to 3.6 % for
Asia &
22%
Switzerland
23%
2004). The positive effect of the higher turnover volumes contributed CHF 24.5 million to the EBITA result. The slight decline in
gross profit margin (the relation of gross profit after deduction of
bought-in services to turnover) from 22.9 % to 22.5 % reduced
EBITA for the year by CHF 15.4 million. Operating cost also in-
UK & North America
20%
creased CHF 16.3 million to accommodate the turnover growth
Scandinavia
19%
(though this 2.4 % year-on-year rise was exceeded by the increase
achieved on the turnover front). These three factors combined to
Europe 16%
engineer a modest CHF 7.2 million decline in EBITA for the year.
CHF million
18%
25
20
24,5
15
–15,4
10
5
–16,3
0
– 7,2
–5
Leisure Travel
82%
–10
Impact of
turnover on
gross profit
Decline in
gross profit
margin
Increase in
operating cost
EBITA decline
With the two biggest sources of SBU Switzerland and SBU
United Kingdom & North America sustaining turnover declines,
A breakdown of the Group EBITA of CHF 120.4 million by
2005 witnessed smaller differences than before between these
Strategic Business Units produces the following picture:
units’ turnover volumes and those of SBU Scandinavia, SBU
Europe and SBU Asia & Destination Management. The Group’s
CHF million
business portfolio shows a balanced distribution of turnover
70
across its five Strategic Business Units. In terms of its activities,
the Kuoni Group has positioned itself since 2004 as a pure
tourist travel organisation with two business activities of
50
Leisure Travel (which accounts for 82 % of total turnover) and
40
Destination Management (which contributes 18 %).
2004
60
2005
63
49
30
20
34
27
28
24
16
10
15
15
18
0
Switzerland
Scandinavia
UK & North
America
Europe
Asia &
Destination
Management
21
SBU United Kingdom & North America remains the Group’s
Earnings per registered share B declined from the
strongest source of earnings. The higher earnings for SBU Scan-
CHF 24.88 of the prior year to CHF –14.33, a result which does
dinavia and the substantial earnings increase at SBU Asia & De-
not permit a dividend to be paid. Following last year’s fiscally-
stination Management were both encouraging trends, and both
attractive CHF 35.00 reduction in the nominal value of Kuoni
these entities made significantly stronger contributions to the
registered share B, with the corresponding amount returned to
Group operating result. The Group’s earnings are now far better
shareholders instead of a dividend payment, the Kuoni Board
balanced (better quality earnings) among its business entities –
of Directors will recommend to the Annual General Meeting
a very welcome development in business risk terms.
of Shareholders of May 18, 2006, that the nominal value of
Kuoni registered share B be further reduced by CHF 14.–
2005 marked the first year in which no amortisation of good-
(from CHF 15.– to CHF 1.–) per share, in line with a proposed
will was effected, because the ordinary amortisation of good-
reduction of nominal value of Kuoni registered share A by
will on acquisitions has now been abolished following a change
CHF 2.80 (from CHF 3.– to CHF 0.20) per share, for a total
in IFRS international accounting standards. Goodwill is still
capital reduction of CHF 44.8 million.
appraised annually, however, and corresponding impairments
are effected if required. Goodwill amortisation entailed
Capital expenditure on tangible fixed assets amounted to
expenditure of CHF 32.6 million in 2004.
CHF 35.3 million, a slight CHF 2.9 million decline on the prioryear level. This amount is derived from numerous smaller pro-
The Kuoni Group reported a net financial expense of
jects designed to replace or expand the Group’s infrastructural
CHF 157.3 million for 2005, which compares with net finan-
facilities, largely in the IT sector.
cial income of CHF 10.9 million for the previous year. The
CHF 29.7 million in financial income (2004: CHF 27.6 million)
The Kuoni Group held cash and cash equivalents of
includes interest income deriving from the investment of operat-
CHF 620.8 million on December 31, 2005, a decrease of
ing liquidity (which was placed exclusively in time deposits) and
17.9 % on the prior-year level. The advance payments from
profits from the sale of subsidiaries. The financial expense of
customers included in this amount totalled CHF 302.5 million
CHF 187.0 million includes interest paid on the convertible bond
(2004: CHF 305.7 million). The Kuoni Group remains in
(which was redeemed in February 2005), interest on bank debts
comfortable financial condition, with no net debt but with
and the CHF 58.3 million book loss resulting from the sale of
net cash of CHF 285.6 million, despite having effected a
the Group’s US-based Intrav subsidiary, together with the im-
CHF 104.5 million* repayment of its shares’ nominal
pairment effected to the shareholding in Brava Holiday-Club AG
value. Cash flow from operating activities amounted to
and the provisions made for contractual liabilities in respect
CHF 153.7 million in 2005, compared to CHF 133.7 million
thereof, which jointly totalled CHF 123.2 million.
for the previous year.
Tax expense amounted to CHF 5.1 million despite the negative
Equity of the Kuoni Group declined from CHF 658.5 million to
net result, because the book loss on the sale of Intrav is not tax-
CHF 581.8 million as a result of the capital repayment. The
relevant. The long-term tax rate is around 25 % to 26 %.
balance sheet equity ratio declined accordingly from 36.2 % to
35.1 %, still an above-average value for the travel sector and
The Kuoni Group reported a net result of CHF – 42.0 million
one which reflects the Kuoni Group’s extremely sound balance-
for 2005, a decline of CHF 116.1 million on the previous year.
sheet health.
The decrease is due to the impairment and provisions effected
in connection with Brava Holiday-Club AG and the book loss
incurred on the sale of the US-based Intrav subsidiary, and to
the abolition of goodwill amortisation. The net profit margin
showed a corresponding decline, from 2.1 % to –1.1 %.
* excluding treasury shares
22
Reporting
Group
The price of Kuoni’s registered share B rose 8.8 % from
CHF 500 to CHF 544 in the course of 2005. The year brought
a CHF 35.00 reduction in the share’s nominal value with a corresponding repayment to shareholders in place of a dividend
payment. As a result, the share delivered a total return to shareholders of 15.8 % for the year. Having clearly outperformed it
for the previous two years, the Kuoni share’s performance in
2005 was below that of its benchmark Swiss Performance Index,
which rose 35.6 % over the same period. The Kuoni share price
has seen above-average growth, however, since the Kuoni Group
announced at the beginning of December 2005 that it was to
dispose of its US-based Intrav subsidiary – a clear indication that
the capital markets welcome this streamlining of the portfolio.
Performance of Kuoni shares (CHF)
At a glance
The Kuoni Group generated total turnover of
CHF 3 688 million in 2005, a 3% increase on
the prior year. Earnings before interest, taxes
and amortisation of goodwill (EBITA) declined,
however, from the CHF 127.6 million of the
previous year to CHF 120.4 million. Excluding
the repercussions of the Asian tsunami disaster,
which affected Kuoni to a greater extent that it
did many of its competitors, EBITA for 2005
would have been an improvement of more than
10 % on the prior year. As a consequence of
the slightly lower EBITA result, the writeoff and
provisions effected in respect of Brava HolidayClub AG and the book loss incurred on the sale
of the Intrav subsidiary, the Group net result for
the year declined to CHF – 42.0 million.
550
Turnover
530
CHF billion
510
4
490
3
470
2
450
1
01/05 02/05 03/05 04/05 05/05 06/05 07/05 08/05 09/05 10/05 11/05 12/05
0
01
02
03
04
05
04
05
Business prospects for 2006 are encouraging. Economic indicators in the main markets are positive on the whole; and the
favourable economic development expected in the prime markets,
together with a continuation of the currently-low interest and
inflation rates, should give an added boost to the travel and
tourism business. In view of this, the chances are good that the
EBITA and net result
CHF million
200
100
0
upturn in the industry can be maintained over the next few years.
Bookings for 2006 are substantially better in most markets than
–100
they were at the same time last year.
–200
–300
01
02
03
net result
EBITA
Earnings per registered share B
CHF
50
0
–50
–100
01
02
03
04
05
23
24
Reporting
SBU Switzerland
Muted demand in the family travel sector
+++ Distinctions earned
as Switzerland’s most
successful tour operator +++
Low-margin special offers abandoned
Shopfitting programme successfully conducted
Online bookings up to 5.5 %
Strategic Business Unit Switzerland and its 1 448 employees
Tour operating: a successful high season
generated annual turnover of CHF 847 million for 2005, 4.8 %
down on the CHF 890 million of the previous year, in a market
Kuoni Switzerland’s tour operating business faced ever-fiercer
characterised by increasingly tough competition. Earnings before
competition in 2005. While the Kuoni brand showed positive
interest, taxes and amortisation of goodwill (EBITA) slipped
overall trends, Helvetic Tours and Reisen Netto were unable
21.9 % or CHF 7.5 million to CHF 26.7 million.
to match their prior-year performances. These developments
can be attributed to a greater reluctance to travel among con-
The turnover decline was due largely to a fall in demand for vaca-
sumers – especially among families and in the lower price
tions in Southeast Asia following the December 2004 tsunami,
segments – and to a reduction in the volumes of discount and
and to the intentional withdrawal of low-margin special offers.
special-offer products. A key feature of the year’s results were
On a brighter note, the year brought a further rise in the popu-
the sizeable differences in month-to-month performance: while
larity of online booking channels.
the high-season months of July and October delivered aboveaverage results, those for the pre- and off-peak months fell
short of their 2004 levels. Overall performance was further
depressed by unforeseen events (terrorist attacks and a strong
hurricane season). Demand for Thailand and the Maldives
picked up again in the months after the tsunami; but Sri Lanka
reported a slower recovery in its tourist volumes.
25
On the short and medium-haul front, Greece, Morocco, the
Edelweiss Air: challenges met
Canary Islands and the Middle East proved especially popular. In
the long-haul sector, the Caribbean saw strong demand, as did
Charter subsidiary Edelweiss Air can look back on a successful
Brazil with the new Fortaleza and Salvador da Bahia charter
2005. A total of 585 000 passengers were carried, with an
flight, to the extent that a new brochure was produced solely
average seat load factor of 75 %. The increase of over 60 % in
for this country. US and Canadian destinations posted double-
jet fuel costs and the additional expense incurred through the
digit percentage growth, and cruise and river travel products
adoption of the Montreal Convention, which allows travellers
also recorded above-average increases.
compensation in the event of delays, posed substantial but not
insurmountable challenges. And, despite cost economies, the
The fact that Kuoni Switzerland’s products are a successful blend
company’s high quality standards and customer-friendly service
of design, service and quality was proven once again in the
were maintained: for the fifth time in succession, Edelweiss Air
Swiss travel sector’s annual Travel Star awards. With 11 gold,
was named best charter airline at the annual Travel Star Awards,
silver and bronze commendations, Kuoni Switzerland was the
earning the Gold Travel Star with the maximum score possible
year’s most successful tour operator. The gold award as Best
of 300 points.
Beach Holiday Provider proved a particular highlight of
the 2005 distinctions.
Manta Reisen: record turnover for diving holidays
Kuoni Reisen Ltd. Retailing:
new-look offices and Internet growth
Manta Reisen, which specialises in travel to the Indian Ocean
and in diving holidays, sustained a decline in turnover for the
Maldives following the Asian tsunami. At the same time, how-
The distribution strategy introduced in January 2004 was con-
ever, the company reported a new turnover record for its
sistently pursued throughout 2005. Total points of sale rose to
worldwide diving holiday business. Mauritius, the Seychelles
103 with the acquisition of Nyon-based Claudette Vacances. To
and the Red Sea also saw turnover increase. A further highlight
further raise its outlets’ responsiveness to customer needs and
of the year was a new link-up to the standard industry reser-
expectations, Retailing also embarked on a new “shopfitting”
vations system, making it easier for travel agents to book key
programme which saw 19 shops totally redesigned, 11 more
Manta Reisen products. Manta Reisen also won, for the second
refurbished and another 21 rebranded under the Kuoni name.
time running, the Gold Travel Star as Best Tour Operator to the
The programme was accompanied by training at these locations
Indian Ocean.
to help better attune staff to changed and changing demands.
An intensive information and training programme was also
launched for outlet personnel following the abolition of the
Privat Safaris, Rotunda Tours and Intens Travel
(PRZ Ltd.): higher turnover volumes
commissions previously earned on flight tickets. The revenue
losses here were partly offset by consistently collecting the new
With Africa currently very popular as a vacation destination,
consultancy fees. Thanks to a comprehensive information cam-
Privat Safaris (which specialises in East Africa) and Rotunda
paign, consumers were also better sensitised to the value that
Tours (which focuses on Southern Africa) posted encouraging
Kuoni adds to its products through its advisory services.
increases in turnover for the year. Both brands also recorded
higher market shares. Rotunda Tours achieved a further sub-
Internet sales witnessed a further increase in 2005, the share of
stantial increase in its earnings, which were the best in its
all bookings made online rising to 5.5 %. The full range of
corporate history; and Privat Safaris reported a favourable net
Kuoni and Helvetic Tours package arrangements is now availa-
result that was above the industry average. The encouraging
ble online. The year also brought the introduction of new Inter-
performances are due to the continuous enhancement of the
net booking facilities that enable users to compare brochure
products and quality provided. Privat Safaris offered new safari
and special-offer prices and, in the air travel sector, to compare
products in 2005, largely in the higher price segment, and this,
fares and check availabilities. The Edelweiss Air website now
too, helped raise turnover levels. Rotunda Tours also presented
also offers the possibility of booking flights, rental cars, bro-
numerous new products. Both companies further launched new
chure products and special offers online.
brochure concepts in the course of the year. Rotunda Tours earned the Gold Travel Star as Best Tour Operator to Africa for the
second time running, while Privat Safaris secured the bronze
distinction in the same category.
26
Reporting
SBU Switzerland
Intens Travel notched up a double-digit percentage increase in
its Indian travel business. The new brochure concept added
At a glance
tours and hotels to the previous product offer; and these
Facing strong competition in a largely sat-
innovations had a positive effect on demand in the higher
urated market, SBU Switzerland sustained
price segment.
a slight year-on-year decline in its turnover
and EBITA results. Encouraging progress was
Railtour Suisse: growth in a testing market
seen in 2005 in the development of the
Kuoni brand; results for Helvetic Tours re-
Rail travel specialist Railtour Suisse reported a turnover increase
mained below prior-year levels, however,
for 2005 that stood in favourable contrast to the general de-
owing largely to the decision to dispense
cline in short-trip travel activity. The positive trend was due at
with early-booker discounts. The moderni-
least in part to a strong rise in sales of Swiss mountain railway
sation of branch offices initiated in 2004
products and of trips to European leisure parks. Railtour Suisse
was consistently continued throughout the
earned the Gold Travel Star as Switzerland’s Best City Break
year: 19 locations were totally redesigned,
Provider for the third year in succession.
and 21 branch offices were newly branded
under the Kuoni name. Kuoni Travel Ltd.
Frantour Suisse: integrated according to plan
currently operates 103 sales outlets in
Switzerland. Internet sales continued to rise,
The Swiss business activities of CIT-Frantour SA were assumed
and accounted for 5.5 %.
on May 1, 2005, integrated into SBU Switzerland and subsequently successfully relaunched. Turnover for the business
showed a year-on-year decline, though this had been expected
in view of the general contraction of the short-trip market.
Turnover
CHF million
1 000
750
500
250
0
01
02
03
04
05
02
03
04
05
EBITA
CHF million
60
45
30
15
0
01
27
28
29
SBU Scandinavia
Northern business continues its positive development
+++ Around 30% of travel
products now
booked online +++
Sizeable growth in Norway and Denmark
Portfolio further expanded
Inroads into the Icelandic market
With its workforce of 676 employees, Strategic Business Unit
While the established Apollo brand is well known as a general
Scandinavia – which is the number-three operator in the Scan-
provider of beach holidays (especially among modern and
dinavian Leisure Travel sector – achieved substantial growth in
urban individuals), the Kuoni brand, which was introduced to
2005 and set new records in its results for the year. Kuoni’s
the Scandinavian market in 2003, still offers potential. With its
Norwegian and Danish companies posted particularly strong
out-of-the-ordinary long-haul tour products and beach holiday
further improvements on prior-year figures that had already
destinations, Kuoni has strong appeal, especially to the more
been impressively high. Total turnover for Kuoni Scandinavia
discerning and demanding traveller.
rose a sizeable 18.3 % from the CHF 595 million of 2004 to
CHF 704 million.
The Apollo product range was expanded in 2005 with the
addition of Rimini and further destinations in summer and
The efficiency of Kuoni’s Scandinavian operations was also en-
again of Eilat in winter. Greece, Tunisia and Bulgaria were
hanced by the re-equipment of the Novair aircraft fleet from
among the most popular medium-haul destinations in 2005;
Boeing 737s to Airbus A321s: the process, initiated in 2004,
demand for Rome, which had also been newly added to the
was completed in spring 2005.
product range, proved more modest. On the long-haul front,
the Kuoni China tours and river cruise products were particularly well received. Kuoni Scandinavia also expanded to Iceland in the course of the year, acquiring a 70% shareholding
in Icelandic travel agency Langferdir ehf.
30
Reporting
SBU Scandinavia
At a glance
SBU Scandinavia continued to grow in
2005. With excellent results posted for the
year, Kuoni confirmed its position as the
number three in the Scandinavian travel
market. Turnover was raised in all markets,
and in Norway and Denmark in particular;
and EBITA was further increased thanks to
strict cost controls. Kuoni also extended its
Scandinavian portfolio in 2005 with the
acquisition of 70 % shareholdings in Iceland-based Langferdir ehf and in Norwegianbased specialists Reisetorget AS. SBU Scandinavia boasts the greatest Internet use of
any Kuoni unit: around 30 % of the unit’s
total turnover is now generated online.
Turnover
CHF million
700
600
500
The people of Scandinavia are among the world’s biggest Inter-
400
net users, especially in the travel and tourism sector. 2005 saw
300
a further increase in the willingness among Scandinavian cus-
200
tomers to book online. Around 30 % of all travel products in
100
the region are now sold via the Internet. To further strengthen
0
its own position in the sale of travel products online, Kuoni
01
02
03
04
05
02
03
04
05
Scandinavia acquired a 70 % shareholding in Norwegian-based
online travel sales specialist Reisetorget AS in summer 2005.
EBITA
Special attention will continue to be paid to this key sales
channel; and Kuoni Scandinavia plans to introduce a new
generation of online booking software in 2006.
CHF million
50
25
0
–25
–50
–75
–100
–125
–150
01
31
32
A look at tomorrow’s travel world
Kuoni is celebrating its centenary in 2006. The Kuoni Group
As part of its centennial celebrations, the Kuoni Group is not
can look back on an exciting journey over its first 100 years, as
only commemorating its first 100 years; it is also looking ahead
it has evolved from Alfred Kuoni’s “travel bureau” on Zurich’s
at what the future may bring. To do so, the company commis-
Bellevue square into an international tourism corporation with
sioned a study on the future of the Leisure Travel sector. The
branches in 27 countries in Europe, Asia, Africa and North
study, which was conducted by the Gottlieb Duttweiler Institute
America. The industry in which the Kuoni Group operates has
in Rüschlikon (near Zurich), Switzerland, analyses how tourists’
changed more in the last 20 years of Kuoni’s first century than
wishes and values evolve. What are the driving factors behind
in all the years before. And the people in it have come to live
such changes? Who is likely to travel in future? Why? What will
with all the many challenges such as cost pressures, possible
be the most popular destinations in 2020? What new travel
new threats and technological advances (like the rise of the
markets are likely to open up?
Internet) that these developments have entailed.
To arrive at as full a picture as possible, the study canvassed
specialists from various countries and cultures: authorities in
future and trend research, science fiction authors and experts in
leisure research. Their responses were supplemented by reference literature, existing trend studies, websites and online
surveys of travel agents and tourism managers and specialists.
Here we present three such encounters – with Klaus Æ. Mogensen, Professor Felizitas Romeiss-Stracke and Dr. David Bosshart –
and a (not quite) fictious interview with Jules Verne which all
illustrate where the journey may lead us next.
The full study on “The Future of Leisure Travel” is available from the
Gottlieb Duttweiler Institute. www.gdi.ch
33
“People will be seeking something
‘genuine’ wherever they choose to
go. They certainly won’t want to
just sit on the beach and get tanned.”
“Global warming could
make outdoor vacations
in northern regions like
Siberia an attractive
prospect.”
34
Mr. Mogensen, what will be the most
How are travellers’ wishes and values
Is the newly-emerged terrorist threat
popular holidays in 2020 and why?
likely to change? What new expecta-
going to dampen demand for travel?
There’ll be a whole range of them, from
tions, dreams and desires can you
That’s highly unlikely. On the contrary:
discovering Siberia to cruises and travel to
imagine emerging?
we’re going to see the rise of a more
and around India. Global warming could
Values and wishes will largely stay the
fatalistic attitude. After all, you’re still
make outdoor vacations in northern re-
same. It’s how and where people try to
more likely to get run over by a car than
gions like Siberia an attractive prospect.
find and fulfil them that will change. And
to lose your life in a terrorist attack.
With cruises, it’s the travel itself that’s the
the desire for discovering the unknown
destination. The type and the number of
and for a genuine experience will be
What would you say are the key drivers
ports of call are of only secondary impor-
hugely important here. We’ll also see an
of change in the travel market?
tance: the vacationers will be staying in a
urge among people to further their own
Health and personal development should
controlled environment, and will make any
development: to find their limits, explore
come first. But the real answer could be
excursions according to their own wishes
their spirituality, make something or help
something far more banal: the desire to
and whims. India will see strong develop-
others. All these needs will have their im-
“get away”, relax, have fun and meet
ment: with its fascinating culture and its
pact on the travel market. We may also
people. The Internet may have an impact
fabulous natural attractions, it has tre-
see an increase in “pot-luck” vacations:
here, too. The Web is making it so much
mendous tourism potential. That applies
buying a holiday from a travel agency and
easier to book travel arrangements. And I
to South America, too, to a more limited
taking your chances on what and where it
could well imagine a growing tendency
degree. And the Maghreb and the Middle
might be. A kind of “safe journey into the
for people in different countries to holi-
East could also become more popular,
unknown”.
day-swap houses or apartments online.
Vacations have become a mass-
What will be a typical low-cost and
consumption product. What will
a typical high-end vacation product
Which vacation offers and promises
happen here? Where are the new
in 2020?
are likely to grow in importance over
niche markets?
The low-cost offer could be trading homes
the next 10 to 15 years, and which are
Many types of vacation will probably be
with a family in another country: it’s cheap
likely to diminish?
much the same in 2020 as they are now.
and it’s cosy. The luxury product might be
We could see a decline in the “classic”
But we will see some more niche markets
an underwater hotel, or an elegant airship
family holiday, and a steep rise in products
emerging. Young people will be seeking
cruise.
for singles and older vacationers. These
extreme experiences, or could be looking
latter groups will want to meet new peo-
for some kind of role-play adventure – à la
ple, feel safe and have an authentic vaca-
“Lord of the Rings” or “Narnia” – in
tion experience. The Internet and the en-
remote and exotic locations. I could also
tertainment industry will be offering more
imagine a growing demand among the
than enough virtual reality. So they’ll be
many single parents we have today for
seeking something “genuine” wherever
tailored club holidays that offer both child-
they choose to go. They certainly won’t
care services and the chance to meet new
want to just sit on the beach and get
people. Overall, we’ll probably see an
tanned.
increase in individual travel products that
though this will depend on political developments.
are not just a bunch of pre-defined
options. Educational holidays where you
don’t just “go”, but “do” something, too,
are sure to be popular. And people wanting nature holidays will no longer be
content with a week on the beach; they’ll
be going whale-watching in a submarine,
or even surviving in the jungle under
expert supervision.
Klaus Æ. Mogensen, who was born in 1960,
works as a futurist at the Copenhagen Institute
for Futures Studies (CIFS). He is editor and
co-writer of CIFS’s book “Creative Man”
(Gyldendal DK 2004), which deals with how
and why creativity and innovation become
increasingly prevalent in all spheres of society
and life: at work, in consumption and in leisure
activities. Klaus Æ. Mogensen also works with
technology, its uses and its significance for
society and modern living, with future modes
of culture, consumption and life, and with
future developments in tourism, media and
intellectual property rights.
35
“Using vacations for some kind of
personal development will no longer
be viewed as the eccentricity of some
ageing hippies.”
“Africa is certainly on the
rise. We see it as having the
kind of unspoilt ‘otherness’
that we always seek when
we travel.”
36
Professor Romeiss-Stracke, what will
be the most popular holidays in 2020
and why?
Ecological concerns are going to become
I believe we will see greater demand –
imagine emerging?
more and more important. But this
especially among Western Europeans – for
There has long been a booming niche
will have little in common with the self-
a product that hasn’t been associated
market for “back-to-basics” products with
righteous environmentalists of old. With
with the notion of holidays for the last
no central heating or running water. This
the new eco-awareness, the traditional
40 years: vacations close to home. Eastern
kind of “reducing to the max” could work
mass tourism destinations have simply had
Europeans will still have some catching up
on a bigger scale. And we shouldn’t for-
their day. When even conventional travel-
to do as they move from a “fun society”
get love and sex. Club holidays may seem
lers start looking for unspoilt nature,
to a more “sensual society”. For long-haul
a little dated, but they just need to be re-
overdeveloped regions will be impossible
destinations, Africa is certainly on the rise.
vamped for an older generation. Mature
to sell, and all those rows of hotels might
We see it as having the kind of unspoilt
singles have money in their pockets and
as well be pulled down.
“otherness” that we always seek when
hunger in their hearts.
we travel. So, provided it can deliver political stability, good accessibility and no fur-
ther spread of HIV, Africa could be a popu-
in 2020?
lar holiday destination by 2020 that peo-
The low-cost product will be two weeks in
ple go back to every other year. For Dubai
niche markets?
a Costa Brava apartment block that’s
and the rest of the United Arab Emirates,
Mass tourism will be dead in 15 years.
about to be demolished. And the luxury
I’m more sceptical: a lot of the present
And it won’t just slip off in its sleep; it will
product will be a holiday on your own
hype has been created by money, and it
be well and truly buried. Package holidays
island with family and friends, with full
will run up against certain limits in about
currently account for 40 per cent of the
service and ample space and time to be
ten years. I don’t see space vacations hap-
German market. That will be down to
among yourselves and not be disturbed.
pening in the next few decades, either:
20 per cent at the most in 15 years’ time.
they just won’t be technically feasible, and
Package arrangements will be a thing of
the costs will be too high.
the past, and the people who take them
will be increasingly looked down on. At
the same time, we’ll see a rise in “second
home” holidays, which will often be
the next 10 to 15 years, and which
linked with a second life elsewhere, crea-
are likely to diminish?
tive timeouts and new working models.
Relaxation will remain the core concern,
even if our high-speed society goes
down a couple of gears. And medical and
beauty tourism will increase: over 50 per-
I don’t think people will just forget things
cent of women under 40 – and a growing
that have happened a few months before.
number of men – are not happy with their
But they will develop a new attitude to
body and are open to surgical solutions.
them. A certain “it-can-happen-any-
As for the “fun” element: this is part of
where” fatalism will soon be part of any
life, but I don’t think its importance will
traveller’s baggage. But for the precise
grow any more, and I don’t think we’ll see
impact of terrorism on tourism, I think
it dumbed down any further. Using vaca-
we’ll still have to wait and see.
tions for some kind of personal development will no longer be viewed as the
eccentricity of some ageing hippies. And
we’ll see people devoting more of their
holiday time to environmental or social
projects or artistic concerns.
Professor Felizitas Romeiss-Stracke, who
was born in 1945, is one of the best-known
thinkers in the leisure and tourism business.
She heads the Creative Leisure Research Bureau
in Munich, Germany, which she founded in
1977. The Bureau assists and advises the leisure
and tourism industry on future trends and
developments by conducting trend research,
providing strategic consultancy services and
devising and developing new leisure and
tourism experiences. Professor Romeiss-Stracke
has also taught at numerous universities, and
currently lectures in leisure and tourism science
at Munich’s Technical University.
37
“People who feel stressed will
want to be waited on, discreetly
and round the clock.”
“Simplicity will be in
demand: ease of booking
and ease of travel. Our
lives will be complicated
enough already!”
38
Dr. Bosshart, what will be the most
all the time, we’ll also see an increase in
popular holidays in 2020 and why?
more nomadic approaches. So we’ll need
A third of Europe’s inhabitants will be over
to consider how people can discover the
People have short memories, as we’ve seen
50 by then. And this segment of the popu-
world within their four mobile walls. The
in the last few years. The urge to travel
lation will fall into three distinct groups.
virtual world is really overlooked: online
and “get away” is very deep-rooted, and
The first – the ageing baby-boomers – will
games are creating powerful models,
has become something of a basic human
have seen a lot of the world already. So
and are strongly affecting our patterns
right in the developed world. The terrorist
they’ll be more interested in closeness-to-
of behaviour.
threat won’t change this.
rial values. They’ll want places they can get
to quickly and conveniently; but they’ll
want to experience these in a deeper, more
The role and acceptance of technology will
sensual and more relaxed way than ever
imagine emerging?
be crucial to future developments. Technol-
before. The second group will find there’s
Human desires are essentially archetypical,
ogy won’t just dominate the way people
a whole new life between 50 and 60.
so they’re timeless, too: discovering, relax-
seek out products, compare them and
Having had their share of disappointments,
ing, playing and sex. For the premium
book them; it will revolutionise the way
they’ll be looking for health and happi-
markets, this means specialisation. Because
travel guides are designed. With interactive
ness, well aware that they may not find
the values for the companies are created
portable real-time guides, a customer can
them, in our western performance culture.
by the individuals. The mass market, by
experience a region in an informative and
They’ll also be willing to try totally new
contrast, will be a brutal battle of speed
entertaining way before they even arrive.
experiences, like hotels in space. And the
and a constant struggle for margins: faster,
Other drivers – like the ever-growing gap
third group will be largely drawn to nature.
better, cheaper. We’ll still want the same
in incomes between rich and poor, energy
What all three groups have in common is
things in 2020, but we’ll be more specific
costs and overall political parameters – will
that they’ll want to experience something
about them. Technology will help better
still be important, too.
different. There will be a clear move here
serve the mass markets, too, by allowing
towards “de-massing”: seeking out an in-
a stronger focus on certain customer
dividual experience. At the other end of
clusters.
home, quality of life and other non-mate-
in 2020?
the scale, we’ll have the low-price tourist
product, which will have created mega-
The low-budget product could be a cheap
hubs in the Mediterranean, the Middle
cruise that gives people the sensation
East, Southeast Asia, America and Africa.
of being on a more luxurious vessel.
Relaxation and constant amusement will
niche markets?
The traditional luxury product will be a
be the watchwords here.
The masses will only be seen as such at the
25 000-euro suite on the MS Europe. And
airports. Then they’ll go their separate
the modern luxury product could be a
ways. Lonely hearts of advancing years
family weekend in your own garden,
won’t want to be part of the masses any
under the shade of real old trees.
the next 10 to 15 years, and which
more. Adventurers will be off on humani-
are likely to diminish?
tarian missions. The more amply-propor-
People who feel stressed will want to be
tioned will seek refuge with the similarly-
waited on, discreetly and round the clock.
sized. And the rich will continue to be
Paradise and its pools should never be
drawn to luxury facilities with top security
closed! Adventurous retirees won’t be
protection. We’ll also see people choosing
content with just looking: they’ll want to
one or two places as their long-term fa-
see and understand things and learn from
vourites. And that could turn the property
them, by being more actively involved.
market into a genuine competitor with the
And simplicity will be in demand: ease of
Leisure Travel sector.
booking and ease of travel. Our lives will
be complicated enough already! With the
demand for mobility and flexibility rising
Dr. David Bosshart, who was born in 1959,
is CEO of the Gottlieb Duttweiler Institute for
Business and Society (GDI) in Rüschlikon, near
Zurich, and is regarded as Switzerland’s most
influential trend researcher. The prime focuses
of his work are on consumption & trade, management & culture, societal change and political
philosophy. He has written numerous books
and other publications, and has lectured at
international symposia in Europe, Asia and the
USA. The GDI is an independent European
think tank which was founded by retail pioneer
Gottlieb Duttweiler.
39
“Anything one man can
imagine, other men will
one day make real.”
“Will mankind only be
satisfied when space travel
has become not only simple,
but affordable, too?”
40
Jules Verne (1828–1905) is regarded as
In your “Journey to the Centre of the
You also said once that, while your
the father of science fiction. And it was
Earth” you describe an underground
round-the-world balloonist Phileas
just a year after his death that Alfred
adventure. Could you see travel mov-
Fogg made his trip with a single travel
Kuoni started turning his own vision of
ing in this direction, too?
bag, this would have been impossible
travelling into reality by opening his first
That journey, of course, was between two
if he had been a woman.
“travel bureau” on Zurich’s Bellevue
volcanoes: Mount Sneffels in Iceland and
Times have certainly changed. Travel is so
square. Many of Verne’s 65 books are
Mount Etna in Sicily. I would need to con-
convenient today that a lady could under-
written as travel novels: reason enough for
sider the feasibility of your proposal. It
take such a journey with ease. I am con-
us to ask this true visionary a few ques-
could, I would venture, prove somewhat
vinced that people will wish to travel
tions of our own.
difficult with current technology. But the
smoothly and comfortably in the future,
fact that, for many, the adventure is an
too. In fact, ease of travel may well be-
Mr. Verne, a passenger aircraft re-
integral part of the travel experience: that
come even more important. After all,
cently took off from Hong Kong,
is likely to remain so. It need not always
people seem to have less and less leisure
headed east and landed in London a
be the journey, however, which provides
time, and thus to prize it all the more
record 23 hours and 21 000 kilometres
the adventure sought.
highly.
things?
Your books have been published in a
So what would your idea be of com-
Of course I did! I have always maintained
world-record 148 languages. What is
fortable and convenient travel in
that one man’s dreams are another man’s
so fascinating about the travel novel?
2020?
achievements. So this feat does not sur-
And what makes travel itself so fasci-
I once went on a cruise on the Mediterra-
prise me in the least. My own Phileas Fogg
nating?
nean Sea. I should like to repeat the expe-
may have taken 80 days to circumnavigate
Anyone who travels is seeking – and expe-
rience. But this time I would opt for an
the world. But it was only ever going to
riencing – the different, the new. That was
airship. The question I find myself musing
be a matter of time.
indubitably the case when I was writing
on most with regard to the future, how-
my novels, and is equally true today. There
ever, is: when will this yearning for new
A trip like Phileas Fogg’s is nothing
is something of the explorer in all of us.
travel experiences reach its limits? Will
particularly unusual for tourists today.
Travelling can help satisfy this fundamen-
mankind only be satisfied when space
What do you think will no longer be
tal drive, this unbridled curiosity. Had it
travel has become not only simple, but
extraordinary in 2020?
not been for their urge to seek the un-
affordable, too?
A voyage by submarine beneath the North
known and the unfamiliar, Columbus,
Pole, perhaps. And an underwater hostelry
Magellan and Marco Polo would never
You haven’t travelled that much
would, I believe, be a fascinating expe-
have set sail.
yourself...
later. Did you ever dream of such
Apart from the Mediterranean and one
rience. The world beneath the seas should
not be Captain Nemo’s sole domain. If the
But weren’t their voyages largely
trip to America: no, I have not. I did run
skies now belong to almost everyone,
driven by commercial concerns?
off to sea once as a child: I wanted to be
then the ocean depths should be similarly
That is what is so admirable about the
a cabin boy and sail to Asia. But my father
shared. I am also of the view that balloon
modern age: people no longer travel in
caught me. So I had to travel in my mind
travel is unwarrantedly neglected in to-
search of Eldorado, they travel merely to
instead. Which was unfortunate for me,
day’s jet age. One need only recall the
experience and relax! As I have said be-
but fortunate – I hope – for my readers.
success of my novel “Five Weeks in a
fore, travel enriches our lives. It is an
Balloon”. I use such a device myself once,
education in itself. And it helps us learn to
for all of 24 minutes. And a very pleasant
respect other cultures. That was as true in
mode of transport it was.
my time as it is in the 21st century. The
travel trade is the trade of the future.
I should know: at the start of my writing
career, I was a stockmarket trader, too.
And, I might add, not without success.
Jules Verne was born in 1828 in Nantes,
France, where he also grew up. He studied law
in Paris, but found that he was more interested
in the theatre. He wrote operas, librettos and
dramas together with Alexandre Dumas, and
started writing the adventure and travel novels
for which he is still famed today in 1863.
He died in Amiens, France, on March 24, 1905.
41
42
Reporting
UK: a sound performance in a difficult market
+++ Kuoni UK earns
Travel Weekly Golden
Globe Awards +++
New quality products launched in the UK
Encouraging results at Voyages Jules Verne
North American Intrav subsidiary sold
In a year that set numerous challenges for Kuoni UK, Strategic
Business Unit United Kingdom & North America reported
United Kingdom:
decline in demand for top UK destinations
total turnover of CHF 770 million, a 6.9 % decline on the
CHF 827 million of 2004. While North American operations
In an aggressively-contested environment with only marginal
improved their operating result, EBITA for the unit as a
market growth, Kuoni UK and its 506 employees generated
whole fell 22 % from the prior year’s CHF 63.1 million to
total turnover of CHF 672 million in 2005, 8.7 % down on the
CHF 49.2 million. The decline was due to a loss of revenue
CHF 736 million of the previous year. The decline was due to
from the UK’s long-established top outbound destinations
the fact that Kuoni UK earns 26 % of its revenues in the regions
in Thailand, the Maldives, Sri Lanka and Egypt.
affected by the Asian tsunami disaster of December 2004 and
in Egypt, and was thus affected more than most UK-based
tour operators by the repercussions of the disaster and the
Sharm-el-Sheikh terrorist attack. With hurricanes afflicting New
Orleans and Mexico relatively early in the season, demand for
further popular Kuoni UK destinations in Central America was
also more muted than it had been in 2004. On a brighter note,
Dubai, Kenya, Tanzania, Morocco and China enjoyed increased
popularity. EBITA for the unit amounted to CHF 58.8 million,
21.5 % down on the CHF 74.9 million of 2004. EBITA margin
declined from the 10.2 % of 2004 to 8.7 % following investments in product innovations and e-business facilities and
owing to increased direct marketing expenses, but still remains
at an above-average level.
43
A highlight of the Kuoni UK year was the introduction of the
Intrav sold to First Choice
new “Exclusive” programme, whose products revolve around
first-class air travel and five-star accommodation and which is
Having been restructured in 2004, Intrav improved its operating
intended to further consolidate the unit’s quality-leader posi-
result and reported turnover of CHF 98 million for 2005 (com-
tion. November also brought the launch of the select “Kuoni
pared to CHF 91 million for the previous year). With the overall
Specialist Collection”: three brochures with a wide range of
development of Intrav remaining well below expectations, how-
summer offers in the United Arab Emirates, Morocco and Swit-
ever, as it had done since business collapsed following the Con-
zerland. “Selections”, a brochure featuring special offers for
corde accident of July 2000 and the events of September 11,
Thailand, the Maldives and Sri Lanka, also made its debut in
2001, the Board of Directors of Kuoni Travel Holding Ltd. com-
the course of the year.
missioned a strategic reappraisal of the company and its prospects in 2005. The study revealed that there was little pro-
Once again, Kuoni UK’s performance was recognised by the
spect of Intrav achieving sustainably satisfactory earnings in the
industry in the form of numerous awards. The most important
future, either, owing largely to the absence of sufficient econo-
of these within the sector, the Travel Weekly Golden Globe
mies of scale. In view of these findings, the Kuoni Board of Di-
Awards, saw Kuoni earn the Britain’s Best Long-Haul Tour Ope-
rectors resolved in December 2005 to sell Intrav to the UK-
rator and Britain’s Best Travel Website distinctions for 2005.
based First Choice Holidays PLC.
The Travel Trade Gazette awarded Kuoni its Best Weddings &
Honeymoon Operator, Best Customer Service, Best Tour Operator to Africa and Best Tour Operator to Central & South America
distinctions. And Advantage Travel Agents distinguished Kuoni
with their Best Tour Operator and Best Overall Holiday Brochure
awards.
The Kuoni UK specialist travel entity:
Voyages Jules Verne posts an encouraging result
Voyages Jules Verne, the core business within Kuoni UK’s specialist travel entity, reported a favourable result for 2005 and,
in contrast to general industry trends, showed above-average
growth. The increase is due primarily to a rise in demand for
European travel products (to Italy in particular), for travel to
appealing medium-haul destinations (such as Syria) and for
products to long-haul destinations like Namibia which are off
the tourist track. In addition, India again proved popular. Voyages Jules Verne redesigned its website in 2005 to make it even
more customer-friendly. The new-look site helped boost direct
online sales. The websites of the entities further businesses –
Travel Collection, Sport Abroad, Leisure Groups, Incentives and
Student Travel – should also be further refined in the course
of 2006.
44
Reporting
At a glance
Kuoni United Kingdom faced a number of
challenges in the course of 2005. With the
decline in demand for top customer destinations in Southeast Asia and Egypt and for
hurricane-hit parts of Latin America, turnover for the year fell short of its prior-year
levels. At the same time, the persistently
strong competition, and the high marketing
costs which this entails, put further downward pressure on Kuoni UK’s EBITA result.
North America improved its operating profit
year-on-year; but with fixed cost still high,
results for the unit remained below expectations. Following a strategic reappraisal, the
Kuoni Group’s US-based Intrav subsidiary
was disposed of at the end of the year.
Turnover
CHF million
1 000
750
500
250
0
01
02
03
04
05
02
03
04
05
EBITA
CHF million
100
75
50
25
0
01
45
46
Reporting
SBU Europe
High quality standards reap their rewards
+++ Italy and the
Netherlands set for
further growth +++
France: a solid performance in a tough market
Italy: further improvement in results
Germany: Kuoni Reisen GmbH sold
Kuoni’s Strategic Business Unit Europe and its 927 staff deliv-
France: an award-winning outlet concept
ered a sound performance for 2005 in a testing business environment. Despite the sale of the German retail operations, the
While the French economy showed less favourable trends in
CHF 596 million turnover for the year was only minimally short
the second half of 2005 than it had in the first six months, the
of the CHF 597 million reported for 2004. EBITA slipped from
CHF 299 million turnover recorded by Voyages Kuoni SA was
the CHF 15.3 million of the prior year to CHF 14.5 million, a
largely in line with the CHF 302 million of the previous year.
decline of 5.2 %.
Demand was muted for travel to the regions affected by the
Asian tsunami disaster: the long-haul destinations of Thailand,
the Maldives and Sri Lanka where Kuoni France is the market
leader in the medium-to-upper price segment and usually
generates around 15% of its turnover. The terrorist attacks in
Sharm el-Sheikh also prompted a substantial decline in demand
for Egypt travel products.
Kuoni France was, however, able to offer customers various
travel alternatives, thanks to its broad product range. This
includes, in addition to the Kuoni brand for long-haul products,
the specialist brands of Scanditours (for Norway, Finland,
Iceland, Denmark and Sweden), Celtictours (for Ireland and
Scotland) and Vacances Fabuleuses (for the USA), and the
Partirdiscount direct-sales line. Demand for China, India, Indonesia, the USA and Vietnam was particularly strong in 2005,
recording double-digit percentage growth. The new destinations of Madagascar and Oman, which were added to the
winter programme, also proved popular.
47
A further highlight of 2005 was the introduction of a new out-
The Netherlands: from Special Traffic to Kuoni
let concept at the beginning of the year. The first such outlet, in
Paris’s Saint-Germain-des-Prés quarter, features stylish niches
Kuoni’s Dutch operations performed well in 2005, despite in-
for customer advice and lifestyle activities (exhibitions, a travel
creased pressure from a stagnant local economy and rising
library and travel accessories for sale) along with the sensory
unemployment. African Holidays delivered particularly strong
appeal of plasma monitors, soft music and carefully-selected
results, though Special Traffic, Emotions, the NetVacations online
aromas. The new concept, which won first prize for its archi-
portal and cruise specialist Royal Hansa Tours Holland B.V. (which
tecture at the annual “Les Enseignes d’Or” awards for espe-
was acquired in spring 2005) also substantially increased their
cially creative and innovative services, was also adopted for
shares of the long-haul market. As a result, the CHF 96 million
Kuoni's Strasbourg office. It should now be developed and
turnover recorded for the year was a 12.9 % improvement on
applied to further Kuoni outlets in and outside France in the
the CHF 85 million of 2004. The turnover increase was achieved
course of 2006.
through strong demand for destinations such as China, Cuba,
Indonesia, Kenya, New Zealand and Tanzania. Business was more
Italy: ground gained
modest to the Caribbean, South Africa and North America.
As in previous years, the nation’s travel agents again voted Spe-
Kuoni Gastaldi Tours S.p.A. performed extremely well in 2005
cial Traffic “Best Specialist Tour Operator” in 2005. The company
in a still-stagnant economic environment. The total turnover
was additionally named “Best Long-Haul Tour Operator”, “Best
of CHF 146 million for Kuoni’s Italian subsidiary was a 5.8 %
Tour Operator to North America”, “Best Tour Operator to the
improvement on the CHF 138 million of the previous year.
Far East” and “Best Tour Operator to Cuba”.
Destinations in Australia, Polynesia and the USA saw doubledigit percentage growth. China, the Caribbean, Kenya, Mau-
The year also saw further progress made in the gradual rebrand-
ritius, Mexico, the Seychelles and Venezuela also proved highly
ing of Special Traffic into Kuoni, which had been embarked
popular. Demand proved more subdued for the areas in Thai-
upon in August 2004 and was completed in December 2005.
land and the Maldives that had been affected by the Asian tsu-
Since January 2006, all Special Traffic products – including the
nami, and for destinations in Brazil and South Africa. 2005
new cruises aimed at the mid-price segment and the new India,
also brought the introduction of the new “Emozioni” luxury
Japan, Madagascar and South America products which were
brand and the conclusion of the general rebranding from
launched at the end of 2005 – have been marketed under the
Kuoni Gastaldi to Kuoni.
Kuoni name. Cruise specialist Royal Hansa Tours Holland B.V.
also expanded its top-end-segment offer in the course of 2005.
Kuoni Travel Nederland B.V. acquired Avontuur.nu Topholding
B.V., the country’s second-biggest discovery travel specialist, on
January 1, 2006. The acquisition marks a further milestone in
Kuoni’s expansion and consolidates its leading position in the
Dutch specialist travel segment. It also lays an excellent foundation from which to offer Kuoni brands and products to the Belgian market, too.
Spain: slightly below prior-year levels
With the Spanish economy showing growth above the European
average, Viajes Kuoni SA generated turnover for 2005 of
CHF 34 million, 5.6 % below the CHF 36 million of the previous
year. The decline is due to weaker demand for charter products
to the Maldives (following the Asian tsunami) and Egypt (after
the terrorist attacks), which had been Kuoni Spain’s top two
destinations in 2004. The most popular destinations in 2005
included China and the USA. A further landmark of the year was
the redesign of the Kuoni Spain website, permitting bookings
to be made online, too, from the start of 2006. The Kuoni Spain
management team was also reorganised and extensively recom-
48
posed in the course of 2005.
Reporting
SBU Europe
Austria: weaker than expected
At a glance
The Austrian economy showed slight growth, but suffered from
offices at the end of the year.
SBU Europe maintained its turnover for 2005 at
prior-year levels, despite the sale of its German
retailing business in the course of the year. The
annual EBITA result was slightly below its 2004
equivalent. While positive trends were reported for
the businesses in Italy and the Netherlands, these
were largely offset by weak demand in the Austrian retail market and by a slight decline in both
the French and the Spanish tour operating sectors.
The rebranding of Dutch operations from Special
Traffic to Kuoni was completed during the year.
The Kuoni Netherlands portfolio was also further
expanded through the acquisition of niche operators Royal Hansa Tours Holland B.V. (2005) and
Avontuur.nu Topholding B.V. (2006).
Germany: Kuoni Reisen GmbH sold
Percentage of turnover in 2005
higher unemployment than in 2004 and a muted consumer
mood. The tourism industry also faced intensified competition
as companies from other sectors (such as food stores) began to
add travel to their product ranges. Against this background,
Kuoni Austria with its Kuoni, Restplatzbörse, Golfreisen mit
Schwung and Commerz-Reisen brands reported turnover for
2005 of CHF 20 million, a 13.0 % decline on the CHF 23 million
of 2004. Demand was hit particularly hard by the bomb attacks
in London and Sharm el-Sheikh. Kuoni Austria streamlined its
retail office network in the course of 2005. The year also saw
a reorganisation of the Restplatzbörse brand in terms of its
marketing and product range, which led to the closure of three
France
Following the completion of its reorganisation (itself the result
of the prior disposal of Kuoni’s BTI Central Europe business
travel unit) at the beginning of 2005, Kuoni Reisen GmbH,
which was domiciled in Friedrichshafen, Germany, was sold
with its 32 travel agencies to the German-based Otto Freizeit
50%
Austria
3%
6%
Spain
16%
und Touristik GmbH, a member of the global Otto Group.
25%
Netherlands
Italy
Turnover
CHF million
500
250
0
01
02
03
04
05
EBITA
CHF million
20
10
0
–10
–20
01
02
03
04
05
49
50
Reporting
On course for further growth
+++ China and India
benefit from economic
upturn +++
Destination Management restructured
Kuoni brand introduced to India
Three offices opened in China
Strategic Business Unit Asia & Destination Management and its
Asia
3 229 employees raised turnover a respectable 13.8 % in
2005, from the CHF 730 million of the prior year to
India: gaining ground
CHF 831 million. Earnings before interest, taxes and amortisation of goodwill (EBITA) rose an even higher 55.1 %, from
In a flourishing local economic environment, the 2 064 employees
CHF 17.8 million to CHF 27.6 million. The results reflect the
of Kuoni Travel (India) Ltd. further consolidated the company’s
unit’s success in securing a substantially above-average share
position as market leader in both the outbound and the
of the market upturns in India and China, and in achieving
inbound segments, and raised its turnover 26.0 % from the
further growth in the US and especially the African markets.
CHF 146 million of 2004 to CHF 184 million. Outbound busi-
The Kuoni Group renamed its Incoming strategic business unit
ness was particularly strong, thanks largely to a positive con-
into Destination Management on January 1, 2006. The newly-
sumer mood among the country’s middle class and a tangible
named SBU has also gained a new process-based structure,
strengthening of the rupee against both the US dollar and Far
with destinations in Europe, North America, Africa and India
Eastern currencies. The focus with Kuoni India’s SOTC umbrella
and all sales units now under a single overall management. The
outbound brand was on inclusive group tours, which were
new organisation will enable sales and handling synergies to be
also conducted with Marathi, Gujarati or Hindi-speaking tour
exploited to the full all over the world, and promises substan-
guides, depending on demand. The year also saw further ex-
tial improvements in operating efficiency. Kuoni Destination
pansion of the individual Leisure Travel segment (SOTC Do-It-
Management is one of the world’s three biggest inbound op-
Yourself Holidays) and of special-interest travel products (SOTC
erators, and is number one in the Swiss, US, African and Indian
Corporate Tours, SOTC Trade Fairs and SOTC Sports Abroad).
inbound markets.
For Indians living more than six months of the year outside
India, Kuoni India also offered travel within India (SOTC 1001
Holidays of India) and to the USA, the UK, the Middle East and
Africa (SOTC Tours).
51
Europe, Thailand, Singapore and Malaysia were among the year’s
Travel and luxury cruises continued to be marketed under the
leading outbound destinations, while Egypt, China and Russia,
S.K.Y. travel brand; and event management and destination de-
all introduced in 2004, also proved popular. The “Jewels of Eu-
velopment were added to its services portfolio in the course of
rope” summer programme was expanded with the addition of
2005. Kuoni also continued to expand its Chinese operations in
Hungary and Prague; and the winter programme was broadened
geographical terms in 2005, opening offices in Beijing and
by the inclusion of Jordan, Sabah and Brunei. In a further devel-
Shanghai. The new offices enable Kuoni to cultivate the emerg-
opment, the premium Kuoni brand was added to the SOTC port-
ing Chinese tourist market even more intensively, and to respond
folio at the beginning of 2006 to appeal more effectively to
even better to local needs. Kuoni also hopes that an opening of
high-end customer segments.
the Chinese outbound market will prompt a substantial increase
in local outbound business to Europe. In a further development,
Kuoni India’s inbound business, which is conducted under the
Kuoni Travel (China) Ltd. intends to expand its meeting & incentive
SITA umbrella brand, also showed wholly encouraging trends.
and its Destination Management land arrangement businesses
This business was divided into five key areas: selling trips to India
into mainland China. And Kuoni opened a third mainland office –
in the USA, in Europe and online (all under the SITA Incoming
in Guangzhou – in March 2006.
brand), acting as the specialist receptive agency for the Kuoni
Group (under the SITA Indian Trails brand), tailored F.I.T. indivi-
dual travel arrangements to India (under the Tour Club brand),
charter operations to Goa and Trivandrum (SITA Charters) and
conference management in India (SITA M.I.C.E.). The destina-
Destination Management Europe:
position maintained
tions of Agra, Jaipur and Goa proved especially popular in 2005.
Demand was more muted for travel to Southern India and Sri
Guests from the USA visited Europe in greater numbers once
Lanka, where inbound services are also offered, following the
again in 2005. Demand for travel to Europe in the Japanese,
tsunami disaster of December 2004. Kuoni India’s business travel
Chinese and Indian markets also continued to rise; but, owing
operations, which are marketed under the BTI SITA brand, and its
largely to the strength of the euro, such growth was more
Visa Facilitation Services, which handle visa processing on behalf
modest than it had been the previous year. The Approved Desti-
of foreign embassies in 15 countries, also posted above-average
nation Status (ADS) introduced by the Chinese authorities on
year-on-year turnover increases.
September 1, 2004, which permits Chinese nationals to visit the
Schengen countries and Switzerland as tourists, has not yet deliv-
Once again, Kuoni’s Indian operations earned numerous awards
ered the benefits expected: with the European Union practising
in the course of the year. The outbound business was honoured
a highly conservative visa-issuing policy, the volume of Chinese
to receive the Best Tour Operator in South Asia award from the
visitors to Europe in 2005 was below expectations. Despite this,
Malaysian Tourist Board; and the inbound business earned the
however, Destination Management Europe with its 545 employ-
prestigious Government of India’s National Tourism Award.
ees, its 14 European Destination Management companies and
Kuoni India also won two major awards at the Galileo Express
its 15 overseas sales offices continued its positive development,
Travel & Tourism Awards – for the Best Outbound Tour Operator
and further expanded its network through the acquisition of
and the Best Inbound Tour Operator. With the Indian economy
specialists APA Travel (Scotland) Ltd. The more heavily-publicised
still showing substantial growth potential, Kuoni expects to see
Eastern European travel products – to the Czech Republic,
similarly strong further increases in earnings from the country’s
Hungary and Poland and latterly to Croatia – proved popular;
tourist sector.
and demand was also strong for meeting, incentive, congress &
event (M.I.C.E.) travel and for the individual travel (F.I.T.) products
Kuoni Travel (China) Ltd.:
three Chinese offices opened
introduced in 2004. Both sectors offer sizeable potential, and will
be further expanded in 2006. A sales and representative office
was also opened in Moscow in February 2006.
The Hong Kong economy showed further rapid growth in 2005,
and Kuoni Travel (China) Ltd. (formerly P&O Travel Hong Kong)
benefited accordingly. Kuoni’s Hong Kong-based subsidiary,
Destination Management USA:
AlliedTPro rebounds
which has a workforce of 245 personnel, raised its turnover from
52
the CHF 53 million of 2004 to CHF 70 million, an increase of
The USA made a striking recovery as a travel destination in 2005.
32.1 %. The company’s core activities of group travel, Leisure
US travel products, such as stays in New York and Las Vegas and
Reporting
guided bus tours in the West, were highly popular, especially
among Italian, Spanish and French visitors and – a more recent
At a glance
phenomenon – among guests from Latin America. The trends
SBU Asia & Destination Management derived
were encouraged, especially in the first nine months, by the pro-
above-average benefit from the rapid growth
nounced weakness of the US dollar and the resulting lower tra-
of the Indian markets and from develop-
vel costs. Only among visitors from the UK did the USA prove
ments in China, while the steep increases in
less popular in the first six months of 2005 than it had the pre-
inbound business to Kenya and South Africa
vious year. The renewed broad demand for US travel was damp-
represented further encouraging trends. Both
ened somewhat in the last quarter of 2005 by a strong hurricane
turnover and EBITA for the year showed cor-
season and by an autumn increase in hotel prices in Los Angeles
respondingly sizeable improvements. Results
and New York. In its efforts to lower costs, AlliedTPro made its
for Europe’s Destination Management opera-
first attempts to outsource certain back-office functions to Kuoni
tions matched their prior-year levels, while
India in the course of 2005. In another development, the com-
the acquisition of APA Travel (Scotland) Ltd.
pany launched its exclusive “Lifestyles” product line for the 2006
further expanded the European Destination
season. In 2006, AlliedTPro intends to further expand its services
Management network. The SBU’s structures
in the M.I.C.E. segment. With this aim in mind, the year will
were enhanced with effect from January 1,
see the Destination Management company network expanded
2006: to better exploit available synergies,
by the addition of a new Las Vegas office.
all markets and sales units within Destination
Management now report to the same
Private Safaris Africa:
continued impressive growth
management team.
Turnover
The East African tourist industry has seen a substantial increase
in bookings since summer 2004. The growth is due in no small
CHF million
800
part to unprecedented investment in Kenya’s infrastructure and
overall safety and security. Private Safaris East Africa Ltd. took
600
particular advantage of the boom: its turnover for 2005 was
34.4 % up on its prior-year equivalent. Once again, East Africa
was visited by sizeable numbers of guests from Germany, the
400
200
UK, France, Italy, Switzerland, Scandinavia and the United States.
0
EBITA results were also buoyed by the restructuring initiated two
01
years ago with its new management team, its strict cost controls
02
03
04
03
04
05
and its enhanced workflows and procedures. With the significant
rise in turnover, staff numbers at the Private Safaris offices in
Nairobi and Mombasa were also increased from the 160 who
had been employed there in 2004 to 171 personnel. The year
further saw the opening of a new service office in Arusha, Tanzania. Private Safaris also launched its own website at the end of
September, with a view to expanding its online sales activities. In
EBITA
CHF million
30
25
the longer term, the Internet should thus be a key engine for
20
growth in the Destination Management sector, too.
15
10
Cape Town-based Kuoni Private Safaris Pty. Ltd., which has a
workforce of 51 personnel, also achieved a substantial 24.1 %
increase in turnover for the year. Key contributors here were the
5
0
01
02
05
newly-launched cruise products, M.I.C.E. business and the new
land arrangements for Namibia. Cape Town also proved popular,
both as a city-break destination and in combination with the
Kruger National Park or the famous Garden Route.
53
54
Market environment
More growth, but at modest rates
+++ Long-haul tourist
travel still rising in
popularity +++
Rising pragmatism in travellers’ attitudes
Positive sector trend continued
Further growth expected
2005 brought a further increase in international traveller num-
Given the events experienced in 2005, these results are better
bers. After the previous year had seen what can be regarded as
than expected. Neither the Asian tsunami nor the bomb attacks
an exceptionally strong 10 % rise, 2005, the year witnessed
in London and Sharm el-Sheikh had any long-term adverse
further growth that was above both the projected rate and the
impact on world tourist numbers. Occurrences such as natural
long-term average of 4 %. According to the World Tourism
disasters and terrorist action do not seem to deter people
Barometer of the UN World Tourism Organization (UNWTO),
from travelling, though tourist flows may be diverted – at least
2005 recorded 42 million more arrivals than 2004, a year-on-
temporarily – to other destinations.
year increase of 5.5%.
The UNWTO, in its “Tourism 2020” prognoses, expects world
In regional terms, growth in the Asia-Pacific region (7.4 %) well
tourism to expand from its present level of 808 million arrivals
outpaced that in Europe (4.3 %), as it had in 2004. The prime
a year to 1 561 million by 2020. The trend will entail sizeable
driver here was Northeast Asia with China (10.2%). Within
shifts in regional market share: Europe’s proportion of all
the European region, Northern Europe (7.1%) and Southern
arrivals is projected to decline from just under 55 % to 46 %,
Europe & the Mediterranean (6.2 %) both posted above-average
while the Asia-Pacific region’s share should rise from its present
growth rates.
19 % to 27 %. Long-haul tourism is expected to show stronger
growth than intra-regional travel. Current forecasts suggest
that long-haul business, which represented 18 % of all tourist
travel in 1995, will account for 24 % of it in 2020.
55
Further growth within the European travel sector
Europe shows largely similar developments
The European travel industry saw a continuation throughout
The rise in online bookings is an undeniable Europewide trend,
2005 of the positive trends of the previous year. Almost all the
though major differences can be seen from country to country.
major tourism corporations raised their annual turnover results,
The industry is also seeing a continuation of the trend towards
and Europe’s ten leading tourism companies generated total
shorter and more frequent travel breaks. The low-cost carriers
aggregate turnover of around CHF 66 billion for the year, an
continue to play a major role in this development. Average
average increase of some 2 % on 2004. The specialists estimate
expenditure per trip is declining accordingly in most countries.
that the continent’s “Top Ten” now account for around 65 to
The low-fare boom is unlikely to end any time soon. As in
70 % of Europe’s total expenditure on organised Leisure Travel.
2004, the long-haul sector saw the greatest growth in the
course of the year. With favourable dollar exchange rates, vol-
With differing degrees of growth among their ranks, the order
umes were up to the USA in particular; but the Caribbean and
of Europe’s top ten tourist travel corporations in CHF turnover
Mexico also saw gains, especially against Asian destinations,
terms saw some slight changes in 2005. The tourism division of
which suffered from the repercussions of the tsunami disaster.
the TUI Group (+5.8 %) remains at the top, followed by Tho-
On the short-haul front, business to Mallorca and Turkey prov-
mas Cook (+2.4 %). MyTravel (–9.5 %) slipped to level-pegging
ed especially strong.
with Rewe Touristik (+2.5 %*) following the former’s turnover
decline. First Choice (+11.0 %) and the Iberostar Group (+8.0 %*)
As in previous years, demand at small and medium-sized tour
were among those corporations which generated the highest
operators outpaced general market growth – particularly if
turnover increases. Kuoni (+3.0 %), Club Med (–0.4 %), Alltours
those operators were specialists in niche markets. A trend to-
(+5.0 %*) and Hotelplan (–3.6 %) complete the top ten.
wards cruise travel is also gaining momentum in Europe: industry magazine FVW puts 2005 annual growth for the German
cruise travel market at some 10 %. Further expansion will demand an increase in available capacities; but with several new
vessels currently under construction, the market should continue to report above-average growth in the years ahead.
* estimated at the beginning of 2006
56
Market environment
Europe’s top ten travel corporations
(estimated annual turnover in CHF billion at the beginning of 20061)
0
TUI Group (D)2
Thomas Cook (D)
22.0
20.7
5
10
15
20
25
2005
2004
12.0
11.7
MyTravel (GB)
6.7
7.5
REWE Touristik (D)
6.7
6.6
First Choice (GB)
5.9
5.4
Iberostar (ES)3
3.9
3.6
Kuoni (CH)
3.7
3.6
Club Med (F)
2.5
2.5
Alltours Group (D)
2.1
2.0
Hotelplan (CH)
1.7
1.8
1
As Europe’s travel corporations have differing accounting principles, currencies and business
years, their annual turnover is only comparable to a limited degree.
2
Travel and tourism business only.
3
Not-consolidated.
57
58
59
Information technology
New online specialists in the portfolio
+++ Strategic focus
consistently maintained
on new distribution
technologies +++
IT network expanded
Service-based architecture enhanced
New reservation system introduced
Kuoni underscored the strategic focus it is placing on new distri-
European online specialists acquired
bution technologies in 2005: in acquiring Reisetorget AS of Norway, Langferdir ehf in Iceland and Avontuur.nu Topholding B.V.
Kuoni acquired the Norwegian-based Reisetorget AS, a specialist
in the Netherlands, the Kuoni Group added valuable online sales
in selling travel products over the Internet, in June 2005. Reise-
expertise to its holdings portfolio. The acquisitions also marked a
torget AS is one of Norway’s leading online travel providers.
continuation of the Group’s multi-channel distribution philoso-
Kuoni’s expansion within the Scandinavian market was taken a
phy. Online bookings accounted for 8 % of all groupwide reser-
further step forward in October with the acquisition of Langfer-
vations last year, a slight increase on 2004. In Scandinavia, which
dir ehf of Iceland. And in December Kuoni was able to announce
shows the highest affinity to the Internet of anywhere in Europe,
its acquisition of Netherlands-based Avontuur.nu Topholding
around 30 % of all bookings in 2005 were effected online.
B.V., which sells discovery holidays in the Dutch and Belgian
markets under the Koning Aap and Shoestring brands, and
does so almost exclusively online with call-centre support.
60
Corporate development
Harmonising the various systems
2005 also saw the conducting of a study to harmonise all the
various reservation systems in use at Kuoni Switzerland, Kuoni
UK and Kuoni Scandinavia. The study and its findings are now
being used to devise a process and systems harmonisation concept which will gradually be adopted in mid-2006.
Under the concept which is now being devised, the different reservation systems in use at Kuoni’s various organisations should
be interlinked by means of a service-based systems architecture
to such an extent that any future developments will only need to
be effected once and new functionalities can be added simultaneously to all reservation systems using the newly-interposed
systems platforms. The new service-based systems architecture
is intended to substantially lower process and transaction costs
and to decrease the overall number of developments. In time,
it should further help significantly reduce the complexity of the
various systems and enhance overall systems flexibility.
A further IT highlight of 2005 was the adoption – following its
successful introduction at Kuoni Netherlands – of a single standard reservation system for Kuoni’s Swiss-based Rotunda Tours,
Manta Reisen and Intens Travel operations. The new booking
system should now be extended to Frantour Suisse SA and Railtour Suisse SA; and studies are currently being conducted into
what further Kuoni subsidiaries it should be expanded to.
61
62
63
64
Further developing sustainable travel activities
+++ Travel commits
us all to greater
responsibility +++
Tourism secures essential income sources
Seeing globalisation as an opportunity, too
Our employees: our greatest asset of all
We are all only guests on the planet we inhabit. Which is why it
Kuoni supports all endeavours against the exploitation of women,
is all the more essential that we act responsibly when using its
men and children. The Kuoni Group aims to intensify its efforts
valuable resources – especially since there is now hardly a corner
in this area, to give those affected the prospect of a future that
of the Earth which remains undiscovered. Travel has opened our
delivers the dignity and integrity they deserve.
eyes to the complex interconnections that abound on our planet.
And that same travel, and the awareness it provides, commits us
to assuming greater responsibility for protecting our Earth and its
many and varied resources. Kuoni intends to live up to that responsibility – be it for the environment, for society or for its own
employees. And, through its social commitment, Kuoni aims to
make its own long-term contribution to our economic, our ecological and our social development. Kuoni also actively seeks
ways and means to avoid, or at least minimise, the social and environmental impact of tourist activities.
Tourism is a key source of local income in many holiday regions,
and maintaining it as such is a top Kuoni priority. Tourist activities
enable jobs to be created and retained all over the world. The
economic development they bring also permits children to build
an independent future, giving them access to an education that
can secure them the work and income they need.
“We are all guests
on our planet”
In line with its long-established traditions, Kuoni actively assumes
responsibility for the people in its employ. Kuoni’s staff – the individuals who, through their dedication, deliver its quality services
day in, day out – are paramount in its priorities. They are, after
all, its greatest asset of all. Kuoni’s actions to promote the development of its own personnel include informing them of such
opportunities, investing in initial and further training and acting
as a reliable employer that offers fair and adequate compensation for the services its people provide. Together with its travel
guests, together with people from other cultures and together
with its employees and the keen responsibility they show, Kuoni
offers its own substantial contribution to making life as progressive and promising as can be for as many people as possible
on this planet we all call home.
65
Personnel
Our workforce reflects our travel world
+++ The Kuoni Group
is a melting pot
of cultures +++
Employees drawn from 60 different nations
Staff survey successfully launched
Targeted personnel development at all levels
The Kuoni Group had a total workforce of 6 943 employees
Sixty united nations
(in full-time equivalents) in 2005, a 7.6 % increase on the
previous year. Of these, 58.5 % were women and 41.5 % were
Diversity is a cornerstone of the Kuoni corporate culture, and the
men. Female employees currently occupy around 43.5 % of all
sheer multi-nationality within its workforce is a central compo-
middle and lower management positions; and two women sit on
nent of the same. All in all, the Kuoni Group employs people
top management, which consists of the 10 members of the
from 60 countries all over the world. And, in addition to its
Group Executive Board and the Group Management Board.
multicultural teams, Kuoni offers equality of opportunity to all
its personnel regardless of demographic factors such as their sex,
Retaining its employees is a key aim and a prime concern within
nationality, religion or age, and is committed to provide a work-
the Kuoni Group. It is an objective that can only be achieved,
ing environment that is free of harassment or discrimination of
however, if the workforce identifies strongly with the company
any kind.
and its product. Motivated employees exude enthusiasm and
present a persuasive calling card to the public, and this is what
Kuoni not only views the diversity within its organisation as an
makes them so essential to the success of any service company.
enrichment of its corporate culture; it also regards it as a great
But Kuoni is equally aware of the vital importance, in health and
opportunity in collaboration terms. Mixed teams will often devise
well-being terms, of maintaining a sound balance between work
particularly creative and visionary solutions, because people of
and private life; and the Kuoni Group offers and supports various
different backgrounds are meeting, inspiring each other and
workhours models to ensure that this balance can be preserved.
contributing valuably diverse ways of approaching and understanding complex issues and developments. Diversity also demands and encourages openness, tolerance and a capacity to
empathise from every individual concerned. Kuoni further values
a healthy mix of different ages among its personnel. The average
age of the present Kuoni workforce is a little over 30 years.
66
The 2005 international Management Survey
Development programmes at all levels
Having previously performed one in 2003, Kuoni conducted
2005 saw the Group Executive Board intensify its endeavours to
a further Management Survey in the year under review. This
support management development programmes in all business
second poll extended to all the Group’s management and some
units and local markets and to encourage employees at all levels
non-management personnel in each business unit. The 73 %
to specifically develop their individual talents and abilities. Desti-
response rate was only slightly lower than the excellent 77 %
nation Management, to take just one example, responded by
recorded in 2003.
working closely with Corporate Human Resources to establish
its “Development Centre“.
A preliminary analysis of the latest poll’s results suggests that the
actions taken in the light of the 2003 Management Survey have
On the corporate management development front, the year
had a positive effect. Among other things, employees are clearly
delivered a Corporate Development Centre Programme for
more aware now of their business unit’s strategic objectives than
middle-management staff. The five-day seminar offered the
they were two years ago. The latest poll also gave very good
participants, who were drawn from various Kuoni markets,
grades to teamwork within the Group’s various units. Scope for
specific opportunities to develop and refine their general
improvement is still felt to exist, however, in the collaboration
management and leadership skills. The seminar was led by an
between business units. Respondents also reported a slight
international team of trainers and observers, the first time this
decline in overall motivation. This is largely attributable to the im-
has been done since the Corporate Development Centre was
pact of natural disasters such as the Asian tsunami of December
established in 2002.
2004 and last autumn’s Hurricane Katrina: events such as these
made exceptional (and often substantial) demands on Kuoni’s
The Group Executive Board has also created a further training
employees in the course of 2005.
facility – the Kuoni Strategic Development Programme – for its
senior management personnel. Some 70 individuals, including
The results of the 2005 Management Survey will be analysed in
all Managing Directors and other senior executives, will com-
detail in all business units in the course of 2006. The findings will
plete the programme in 2006, spending several days discussing
then be used to devise, develop and implement concrete actions
and developing key strategic issues. The programme is being
that pay due and full regard to local circumstances and condi-
conducted in collaboration with the UK-based Ashridge Busi-
tions. The current aim is to implement these actions between
ness School.
2006 and 2007, and then conduct a third such survey to help
monitor their effect.
67
Environment
Promoting a demand for eco-minded tourism
+++ Information is the
backbone of our environmental endeavours +++
Kuoni Netherlands secures ISO certification
Staff further sensitised to ecological concerns
Green Planet Award programme extended
Through its active involvement in ecological affairs, Kuoni not
The Kuoni Group is fully aware of its business responsibilities in
only helps preserve the biodiversity and natural attractions at its
ecological terms. Which is why Kuoni further expanded and
destinations; it also makes its own contribution to ensuring the
enhanced its environmental management activities in 2005.
sustainable development of the tourism sector. Environmental
Following the example of Kuoni Switzerland in 2003, Kuoni
care should be more than a matter of responding to urgent con-
Netherlands earned ISO 14001 certification in the course of the
cerns. It should also strive to identify and exploit opportunities
year. Kuoni Switzerland will undergo its recertification process in
for taking preventive steps that help protect and preserve the
2006. The year also saw all Kuoni’s country organisations take
natural world – not least because an intact environment is essen-
and refine steps to inform their customers about the environ-
tial to the long-term future of the travel business, an industry
mental impact of travel and offer eco-tips for their intended
that is now the biggest economic sector in turnover terms, provid-
destinations. The information is communicated via the country
ing over 200 million jobs all over the globe.
organisations’ websites or included in customers’ travel documents. Kuoni Switzerland also addresses key environmental and
sociopolitical issues in the travel documentation it provides.
68
Employees and partners in an ambassadorial role
Green Planet Award programme
Sensitising its own staff to ecological and ecopolitical issues is a
Kuoni Switzerland bestowed the Green Planet Award – its covet-
further key aspect of Kuoni’s eco-endeavours. For Kuoni, envi-
ed seal of eco-excellence – on 63 resort hotels and 19 cruise ves-
ronmental care begins at the workplace. Kuoni Switzerland, for
sels at the end of 2005. Each of these operations had met the
example, held a further successful “Eco-Week” in 2005. And
award’s rigorous quality criteria by showing an exemplary eco-
some 170 employees from various units were familiarised with
performance in its energy use, water consumption, waste dis-
Kuoni Switzerland’s ecological activities through a series of
posal, transport arrangements and general business manage-
instruction and seminar sessions. Numerous other national
ment. The 19 cruise vessels which earned the distinction in 2005
companies conducted their own staff training during the year,
were an encouragingly sizeable increase on the 11 that had
encouraging their personnel to be more environmentally-mind-
received it the previous year. The award’s rising popularity is due
ed in their actions and showing them how to be as prudent
in no small part to its being one of the few international environ-
as possible in their use of ecologically-sensitive resources.
mental distinctions with which cruise vessels and their operators
can confirm their eco-credentials.
The Kuoni Group also involves its partners and service providers
– such as hotels, cruise ship operators and local agencies – in its
Kuoni has also seen a significant increase in the desire to obtain
environmental activities. Kuoni expects its suppliers and service
Green Planet certification: of the 1 244 questionnaires that
partners to show a high degree of eco-responsibility: Kuoni
Kuoni sent out to its partners in 2005, over 300 were returned –
Switzerland, Scandinavia, UK and Netherlands already use ques-
a 10% increase on 2003. The Green Planet programme was also
tionnaires or checklists to assess their local partners’ ecological
extended to Kuoni’s Privat Safaris subsidiary in East Africa for the
performance. The Kuoni Group sets strict eco-guidelines for its
first time in 2005: two hotels in Kenya received the award. And
member companies, too: the engines on the aircraft of Edel-
Kuoni Switzerland plans to further expand the scope of the
weiss Air, for example, boast the lowest emission credentials
Green Planet Award in 2006, to the Indian Ocean hotels in the
available on the market, producing less noise and fewer pollu-
Manta Reisen programme and to those used by its Rotunda
tants than conventional aircraft engines. Edelweiss Air and
Tours subsidiary, which specialises in South Africa travel.
Novair also pay particular attention to ecological considerations
when planning fuel uplifts and the routes to be flown. In taking
Partnerships
all these actions, Kuoni is meeting a growing demand for travel
that is as ecofriendly and socially acceptable as possible and for
Once again, the Kuoni Group provided financial support for nu-
accommodation which pays an equally keen regard to environ-
merous relief projects and maintained partnerships with selected
mental concerns.
organisations in the year under review. These include supporting
the activities of Project AWARE (of the Professional Association
of Diving Instructors) and Protect the Maldives, which both aim
to preserve coral reefs. All Edelweiss Air flights show films on
board from both organisations that instruct visitors on how to
avoid harming these fragile ecosystems. Kuoni also supports
the Friends of the Serengeti, while Kuoni UK provides financial
assistance to the Born Free Foundation. In a further ecologicallymotivated move, Kuoni Switzerland decided in 2005 to limit
the dolphinarium excursions in its programmes to those establishments which fully comply with the strict and internationallyrecognised requirements for keeping and caring for these
animals.
69
Social commitment
Giving people a promising new start
+++ The future
belongs to the children
of the world +++
International humanitarian projects supported
Children provided with a sound social environment
Young talents and skills promoted and encouraged
As an international tour operator, Kuoni is in daily contact with
kindergarten or a social centre for the needy within the local
people from a vast range of countries and cultures. Our travel
community. The entire SOS Children’s Villages worldwide philo-
products help make dreams come true: we take our guests to
sophy is based the principle of a peaceful coexistence that
vibrant cities, deserted regions, pristine beaches and romantic
extends beyond geographical borders, ethnic origins, cultural
mountain areas. Bringing people of different backgrounds to-
backgrounds and religious beliefs.
gether is part and parcel of the business we conduct. And our
regular encounters with peoples from all over the world under-
In addition to their annual donations, which are devoted to
line to us time and time again the sheer diversity of the planet
various national projects, Kuoni’s staff conduct regular fund-
we live on. It is in view of this – and of our conviction that we
raising drives on SOS Children’s Villages International’s behalf.
can, through our work, contribute to their development, too –
Kuoni Switzerland, for example, provided financial support last
that Kuoni also strives to help and support its partner countries
year for a project in the SOS Children’s Village in Nelspruit in
in humanitarian terms. Good schools and educational opportu-
South Africa, through which it was able to cover the village’s
nities for their children and their youth, or simply the jobs that
entire spending needs for a full four-month period. The village
enable their people to keep their families fed: these should all
is home to some 100 children living in ten houses. In addition
be a matter of course in every nation on Earth. And, through its
to a public kindergarten, the village also runs a social centre
partnership with SOS Children’s Villages International, Kuoni
which provides advice and assistance to HIV/Aids-affected
can help provide these basic opportunities simply and directly
families.
wherever they are required.
The tsunami response
Kuoni continued its collaboration with SOS Children’s Villages
70
International throughout 2005. Some 57 000 orphaned and
The Asian tsunami disaster shocked and horrified people all
abandoned children and adolescents are accommodated in the
over the world at the end of 2004 and in the months there-
organisation’s villages around the world, each living in a house
after, and will stay in all our minds for a long time to come.
together with a mother and five to ten other children of varying
Almost all of Kuoni’s country organisations responded to the
ages, and each being offered a warm and welcoming home and
tragedy by donating funds to support the subsequent relief
a safe and structured social environment in which to grow up.
efforts. Kuoni Switzerland made a substantial donation to the
Each SOS Children’s Village consists of 10 to 15 such families,
national “Glückskette” to assist the people and the regions
with many villages featuring further facilities such as a public
affected. Kuoni UK also took part in the worldwide drive to
raise much-needed funds: their own contribution went specifi-
Bangalore, Chennai and Hyderabad. Kuoni Travel Academy
cally towards rebuilding facilities, such as emergency camps in
qualifications have already attained a high degree of prestige
Sri Lanka. The Mahamodera Maternity & Gynaecology Field
within the Indian travel sector in a remarkably short time;
Hospital, which was totally destroyed in the disaster, had to
and the Academy has provided valuable training for some
temporarily relocate to the medical faculty at the University of
1 200 individuals a year over the past two years.
Ruhuna in Karapitiya, Galle. The provision of a local field clinic
was also financed by Kuoni UK.
Sports and cultural involvement
The employees at Kuoni Austria directed their post-tsunami as-
Intensive sports training has long been regarded as a lesson in
sistance to SOS Children’s Villages. The funds raised were suffi-
life, promoting such values and qualities as self-competence and
cient for Kuoni Austria to provide full financial support for half
social skills. The Swiss “Sporthilfe” foundation has dedicated
a year for around 130 children living in the region affected.
itself to advocating and supporting such sporting involvement
Kuoni France, meanwhile, helped to fund the “Jeewanadiya”
and the benefits it brings. The foundation plays an important
(“Living Water”) project in Sir Lanka. The amount donated
social role, promoting and assisting talented young sportspeople
allowed four houses to be constructed which, as part of a larger
by working closely with their families, the Swiss Olympic associ-
village, have given a new home to 33 families with some 100
ation and the various sports federations. A total of 49 sports
children and are enabling the occupants to rebuild their lives.
disciplines received “Sporthilfe” support in 2005, offering over
2 500 young athletes, especially those involved in minority sports,
Kuoni Travel Academy
the opportunity to enhance their sporting environment and
make the most of their talents and skills. Kuoni Switzerland has
Kuoni India provides development help of a different kind
been supporting the “Sporthilfe” foundation with a substantial
through its Kuoni Travel Academy, which has been offering
annual financial donation for five years now. Kuoni Switzerland
specialist training in all areas of the tourism industry since
is further involved in numerous cultural projects, which include
2003. The practically-oriented course programmes have been
a children’s concert tour and the Cuban musical “Bar at Buena
compiled in close collaboration at all levels with acknowledged
Vista”, for which it served as the principal sponsor.
industry experts and academics. The courses are geared to both
students and experienced travel-sector specialists, and the Academy has now established training centres in Delhi, Mumbai,
71
Kuoni glossary
An A to Z of the travel world
ADS Approved Destination Status. A new concept introduced on
September 1, 2004 under an agreement signed by China, Switzerland
and the European Union’s Schengen countries permitting Chinese
nationals to visit Europe for Leisure Travel purposes. ADS also allows
licensed travel organisations to actively promote tourism in China.
Agent An independent travel agency that sells Kuoni products. The
term is also used for companies acting as handling agents at Kuoni
destinations.
APA Travel (Scotland) Ltd. A UK-based Destination Management
specialist acquired by Kuoni Travel Holding Ltd. in 2005 to further
expand its European Destination Management network.
Avontuur.nu Topholding B.V. A company acquired by Kuoni Travel
Nederland B.V. in January 2006. The Avontuur.nu group specialises
in organising discovery holidays for individuals and small groups and
distributes these primarily online and via call centres under the
(→) Koning Aap brand and the (→) Shoestring brands in the Netherlands. Avontuur.nu Topholding B.V. also owns ticket wholesaler
(→) Ticket2Go.
Charter The assumption of all the capacity of a vehicle (full charter)
or part of the capacity available (partial charter) by a tour operator at its
own commercial risk. The Kuoni Group owns two charter airlines,
(→) Edelweiss Air in Switzerland and (→) Novair in Scandinavia.
Destination Management Part of (→) SBU Asia & Destination Management. Destination Management offers professional advisory and
organisational services for land arrangements at holiday destinations. It
consists of four departments: Destination Management Services Europe
(with headquarters in Zurich, 14 Destination Management companies
in Europe and 15 sales points overseas), Private Safaris (with subsidiaries domiciled in Cape Town, Nairobi and Tanzania), AlliedTPro (with its
head office in New York and further offices in Los Angeles, Miami,
72
Orlando and Hawaii) and SITA World Travel (with its head office in New
Delhi, 11 branch offices in India and further offices outside India).
Distribution Offering advice on and selling Leisure Travel to
customers.
Edelweiss Air A Swiss-based charter airline and a subsidiary of the
Kuoni Group. Its aircraft fleet comprises three Airbus A320-200s and
one Airbus A330-200.
F.I.T. Foreign individual traveller. A person (or a group of two or more
persons travelling together) visiting a destination independently, i.e.
not with a (→) package holiday arrangement.
Frantour Suisse SA A rail travel specialist. The business activities of
CIT-Frantour SA were taken over in full by the Kuoni Group in the
course of 2005.
IBU Independent Business Unit. Kuoni UK has a number of IBUs, each
of which is active in its own niche market.
Inbound business The excursions, seminars, congresses and similar
which Kuoni Destination Management organises at its various destinations for incoming customers from abroad.
Incentive travel Trips offered by companies to their individual
employees in appreciation of their performance and achievements.
ISO 14001 An internationally-acknowledged environmental certification, which Kuoni Switzerland became the first-ever tour operator
to obtain in autumn 2003. Kuoni Netherlands was also ISO-certificated
in 2005.
Koning Aap A Dutch-based subsidiary of (→) Avontuur.nu
Topholding B.V.
Kuoni glossary
Kuoni and Hugentobler-Foundation The principal shareholder of
Kuoni Travel Holding Ltd. in terms of voting rights (25% of voting
rights, 6.25 % of share capital).
Kuoni Travel (China) Ltd. A Hong Kong-based Kuoni subsidiary,
which is active in the (→) tour operating and (→) Destination Management fields and also operates offices in mainland China. The company
was known as P&O Travel Hong Kong Ltd. until 2005, and has been
in the Kuoni Group since 2003.
Kuoni Travel Holding Ltd. The holding company of the Kuoni Group.
Langferdir ehf An Iceland-based company in which Kuoni Scandinavia AB acquired a 70 % shareholding in the course of 2005. Langferdir
is responsible exclusively for the distribution of the products of Kuoni
Scandinavia via Copenhagen.
M.I.C.E. travel The organisation and provision of travel products
connected with meetings, (→) incentives, congresses and events.
Novair Kuoni Scandinavia’s charter airline, which operates three Airbus
A321-200s and one Airbus A330-200.
Outbound business Travel to destinations abroad organised by Kuoni
for the local population in its various markets.
Royal Hansa Tours Holland B.V. A specialist in exclusive cruise travel all
over the world which was acquired by Kuoni Travel Nederland B.V. in 2005.
SBU Strategic Business Unit: the prime entities into which the Kuoni
Group is organised for management and financial reporting purposes.
Service provider Any provider of services for travellers such as an
airline, a hotel or a restaurant. Also referred to as “suppliers” by tour
operators.
Shoestring A Dutch-based subsidiary of (→) Avontuur.nu
Topholding B.V.
SOS Children’s Villages International The world’s biggest private
children’s charity, of which Kuoni has been a partner since 1997. The
organisation provides a permanent home for orphans and other children
in need and prepares them for a self-sufficient future.
Ticket2Go A ticket wholesaler which is owned by (→) Avontuur.nu
Topholding B.V.
Tour operating Selecting and buying-in products and services and
combining them into (→) package holidays or tailored travel arrangements.
Package holiday A combination of holiday products and services
(flights, hotel, transfers, local assistance etc.) offered at a pre-determined all-in price.
Vertical integration The extension of a company’s business activities
throughout the value-adding chain within the same industry, e.g. a tour
operator acquiring its own hotels, airlines, car rental companies and
similar.
Reisetorget AS A Norwegian-based specialist in online travel product
sales, in which Kuoni Scandinavia AB acquired a 70 % shareholding in
the course of 2005. The company is one of the leading online providers
of travel products and services in the Norwegian market.
World Travel Awards Prestigious distinctions bestowed annually
within the travel and tourism industry. Kuoni was named the “World’s
Leading Tour Operator” at the World Travel Awards for the seventh
time in November 2005.
Retailing Travel industry jargon for (→) distribution.
73
Addresses
A worldwide presence
Kuoni Travel Holding Ltd.
Neue Hard 7
CH-8010 Zurich
Phone +41 44 277 44 44
Fax
+41 44 271 52 82
E-mail communications@kuoni.com
www.kuoni.com
Countries are listed alphabetically.
Austria
Reisebüro Kuoni Ges.m.b.H.
Modecenterstrasse 16
AT-1030 Vienna
Phone +43 1 22 730 401
Fax
+43 1 22 730 409
E-mail administration@kuoni.at
www.kuoni.at
China
Kuoni Travel (China) Ltd.
Suite 1701, Tower 2
The Gateway
25 Canton Road
Tsim Sha Tsui, Kowloon
HK-Hong Kong
Phone +852 2956 6888
Fax
+852 2956 6789
E-mail mgt@skytravel.com
www.skytravel.com.hk
Czech Republic
Kuoni Travel S.R.O.
Destination Management Czech Republic
Jungmannova 30
CZ-110 00 Prague 1
Phone +420 2 24 99 01 90
Fax
+420 2 24 99 01 99
E-mail dmc.prg@cz.kuoni.com
www.kuoni-dmc.com
Denmark
Nørrebrogade 10, Ved Søerne
DK-2200 Copenhagen
Phone +45 35 20 10 00
Fax
+45 35 20 10 09
E-mail salg@kuoni.dk
www.kuoni.dk
74
France
Voyages Kuoni SA
95, rue d’Amsterdam
FR-75008 Paris
Phone +33 1 42 85 71 22
Fax
+33 1 42 80 41 85
E-mail infocenter@kuoni.fr
www.kuoni.fr
Japan
Kuoni Travel (Japan) Ltd.
Ebisu MF 14 Bldg., 3rd Fl.
1-6-10 Ebisu-Minami, Shibuya-ku
JP-Tokio 150-022
Phone +81 3 5721 67 31
Fax
+81 3 5721 67 50
E-mail incoming.tyo@jp.kuoni.com
www.kuoni-dmc.com
Hungary
Kuoni Destination Management Ltd.
Destination Management Hungary
Bajcsy Zs. U. 12. Office nr 604
HU-1051 Budapest
Phone +36 1 235 80 21
Fax
+36 1 266 00 46
E-mail dmc.bud@hu.kuoni.com
www.kuoni-dmc.com
Iceland
Langferdir ehf
Holtasmara 1
IS-201 Kopavogur
Phone +354 510 03 00
Fax
+354 510 03 09
E-mail langferdir@langferdir.is
www.kuoni.is
India
Kuoni Travel (India) Pvt. Ltd.
Kuoni House
Colaba
IN-Mumbai 400 001
Phone +91 22 5656 2000
Fax
+91 22 5656 2069
E-Mail communications@kuoniindia.com
www.kuoniindia.com
Kenya and Tanzania
Private Safaris East Africa Ltd.
Twinstar Tower
Mombasa Road
P.O. Box 45205
KE-Nairobi
Phone +254 2 530601 / 554150 / 533998
Fax
+254 2 533854 / 543438
E-mail nairobi@privatesafaris.co.ke
www.privatesafaris.co.ke
Nepal
SITA World Travel (Nepal) Pvt. Ltd.
Lal Durbar Marg, P.O.Box.: 2656
Kathmandu, Nepal
Phone +977 1 4418363
Fax
+977 1 4423422
E-mail sales@sitanepal.com
www.e-holidaysnepal.com
Netherlands
Kuoni Travel Nederland BV
Entrada 211–214
NL-1001 AD Amsterdam
Phone +31 20 398 92 92
Fax
+31 20 398 92 02
E-mail info@kuoni.nl
www.kuoni.nl
Italy
Kuoni Gastaldi Tours S.p.A.
Mura di Santa Chiara 1
IT-16128 Genoa
Phone +39 010 596 81
Fax
+39 010 596 8818
E-mail infotours@kuoni.it
www.kuoni.it
Norway
Grensen 3
NO-0159 Oslo
Phone +47 23 21 30 00
Fax
+47 23 21 30 01
E-mail info@kuoni.no
www.kuoni.no
Addresses
Singapore
Kuoni Travel (S) PTE Ltd.
Equity Plaza
20 Cecil Street
Unit 05-03
SG-Singapore 049705
Phone +65 6557 22 12
Fax
+65 6557 22 02
E-mail kuoni@sg.kuoni.com
www.kuoni-dmc.com
South Africa
Kuoni Private Safaris Pty. Ltd.
1st floor Waterford House, Waterford Place
P.O. Box 350, Century City 7446
ZA-Cape Town
Phone +27 21 528 22 00
Fax
+27 21 528 22 90
E-mail info@privatesafaris.com
www.privatesafaris.com
South Korea
Kuoni Travel (Korea) Ltd.
#1301, Kwanghak Bldg. 360-1
Taepyungro-2KA, Chung-ku
KR-Seoul 100-102
Phone +82 2 773-04 00
Fax
+82 2 773-64 52
E-mail kuonisel@kr.kuoni.com
www.kuoni-dmc.com
Spain
Viajes Kuoni SA
Paseo Infanta Isabel, 17
ES-28014 Madrid
Phone +34 91 538 27 00
Fax
+34 91 538 27 27
E-mail kuoni@kuoni.es
www.kuoni.es
Sri Lanka
SITA World Travel (Lanka) Pvt Ltd.
No 29, Palm Grove
Colombo 03, Sri Lanka
Phone +94 11 4741650
Fax
+94 11 4741665
E-mail sales@sitalanka.com
www.e-holidaysrilanka.com
Thailand
Kuoni Travel Ltd.
Tonson Building, Suite 506
50 Soi Tonson, Ploenchit Road
TH-Bangkok 10330
Phone +66 2 255 9235 8
Fax
+66 2 255 9232
E-mail felix.gaehwiler@th.kuoni.com
www.kuoni-dmc.com
Sweden
Ynglingagatan 2
SE-11347 Stockholm
Phone +46 8 673 84 00
Fax
+46 8 673 85 08
E-mail apollo@apollo.se
www.apollo.se
www.kuoni.se
Switzerland
Kuoni Reisen Ltd.
Neue Hard 7
CH-8010 Zurich
Phone +41 44 277 44 44
Fax
+41 44 271 52 82
E-mail communications@kuoni.ch
www.kuoni.ch
Kuoni Reisen Ltd.
Überlandstrasse 360
CH-8051 Zurich
Phone +41 44 325 21 11
Fax
+41 44 321 19 09
E-mail incoming.ho@ch.kuoni.com
www.kuoni-dmc.com
Taiwan
Kuoni Travel Ltd. (Taiwan Branch)
12 F-1, No. 87
Sung Chiang Rd.
TW-Taipei 100
Phone +886 22506 50 00
Fax
+886 22517 07 07
E-mail incoming.tpe@tw.kuoni.com
www.kuoni-dmc.com
USA
AlliedTPro Inc.
500, 7th Avenue, 38th street
US-New York, NY 10018
Phone +1 212 596 1000
Fax
+1 212 313 9800
E-mail info@alliedtpro.com
www.alliedtpro.com
United Arab Emirates
Kuoni Travel Ltd. (Dubai Branch)
P.O.Box 40043
Dubai Creek Tower # 8B
UAE-Dubai
Phone +971 4 224 04 22
Fax
+971 4 222 73 00
E-mail kuoni@emirates.net.ae
www.kuoni-dmc.com
United Kingdom
Kuoni Travel Ltd.
Kuoni House
GB-Dorking, Surrey RH5 4AZ
Phone +44 1306 74 08 88
Fax
+44 1306 74 41 57
E-mail information@kuoni.co.uk
www.kuoni.co.uk
A full list of addresses is available on the
www.kuoni.com website.
As at March 2006
75
Agenda for 2006
Annual General Meeting of Shareholders May 18, 2006
76
Half-year results
August 22, 2006
Nine-month results
November 14, 2006
Kuoni’s first hundred years:
The experience and the events
The Kuoni brochure
over the years
1906
1907
1912
1925
1936
1948
Kuoni Travel is founded by Alfred Kuoni,
who opens his first
“travel bureau” on
Sonnenquai 6 (today’s
Bellevue) in Zurich,
Switzerland.
Kuoni operates its first
guided tour abroad, to
Egypt.
The original Kuoni
Travel office moves
from Bellevue to
Zurich’s Bahnhofplatz.
Kuoni follows the
opening of a branch
office in St. Moritz
with further outlets
in Switzerland and its
first branch office
abroad in Nice, France.
Kuoni opens a city
office in Basel, Switzerland, to offset possible losses at seasonal
spa resorts in and outside Switzerland as a
result of economic crisis and the looming
threat of war.
After World War Two,
Kuoni continues its
expansion outside
Switzerland, founding
French and Italian subsidiaries.
Kuoni’s first hundred years
1965
1972
from 1980
1995
2005
2006
Kuoni acquires the
London-based Challis
& Benson Ltd. travel
agency, which is later
to develop into Kuoni
UK.
The Kuoni share is
traded pre-bourse in
Zurich, while several
thousand Kuoni customers fly to the Osaka
World Exposition on a
Convair 990 Coronado
operated by Balair.
Kuoni acquires various
companies in and outside Switzerland and,
by 2006, has branch
operations in 27 countries in Europe, Asia,
Africa and North America.
Edelweiss Air, Kuoni’s
charter airline, is
founded, making its
first flight in 1996.
Kuoni opens its first
outlet incorporating
an innovative new
design concept in
Paris, France.
Kuoni celebrates its
corporate centenary.
Photo captions
Title page:
The skyline from the Creek Walkway, Dubai
Pages 28/29:
St. Peter Ording Beach on the North Sea
Pages 58/59:
Urban motorway, Shanghai
Pages 2/3:
A shopping precinct on Nanjing Donglu, Shanghai
Page 32:
Las Vegas
Pages 62/63:
A park in the Pudong Business District, Shanghai
Page 7:
Xujiahui, Shanghai
Page 42:
Butler’s Wharf, Docklands, London
Pages 10/11:
A temple in Madurai, India
Page 46:
Trajan’s Column, Rome
Page 64:
Wat Phra That Doi Kong Mu Burmese temple,
Thailand
Page 18:
A religious ceremony, India
Page 50:
Street food in Hong Kong
Page 24:
St. Charles’s Church by the River Inn, St. Moritz
Page 54:
The harbour in Centuri, Corsica
This Annual Report is also available in German.
Der Geschäftsbericht ist auch in deutscher Sprache erhältlich.
Published by
Corporate Communications
Neue Hard 7
CH-8010 Zurich
Phone +41 44 277 4444
Fax
+41 44 271 5282
www.kuoni.com
Project lead
Andrea Hemmi, Head of Corporate Communications
Layout concept
Wirz Identity AG, Zurich
Design and lithography
n c ag, Urdorf
Photography
Peter Bialobrzeski/laif, Cologne
Portraits
Tom Haller, Zurich
Translation
Paul Day, Zurich
Printing
Multicolor Print AG, Baar
Binding
Bubu AG, Mönchaltorf
Page 73: The train to Changi Airport, Singapore

The Future of Travel. Since 1906. Annual Report - Reporting

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