NEWS — SPECIAL REPORT
Kuoni Group’s surprise decision to sell its tour operating division will prove good for the UK business, UK managing director Derek Jones tells JULIET DENNIS
Derek Jones is confident of significant interest in Kuoni’s tour operating businesses from potential buyers. The Kuoni UK managing
director said he is “passionately behind the sale” of the Swiss- owned group’s tour operating interests which, in the UK, includes 35 Kuoni-branded shops and 10 John Lewis concessions as well as specialist businesses Carrier, Kirker Holidays, Voyage Jules Verne, CV Villas and Journeys of Distinction. Jones told Travel Weekly: “It’s a
great brand, a great team and a great business. I don’t think there will be any shortage of interest.”
Sale timing Parent Kuoni announced the plan to sell last Wednesday (January 14) and Jones conceded: “In honesty, you would not choose to do this in the middle of the key trading period but it gives us an
opportunity to exit 2015 under new ownership.” “It’s very
much business as usual right now for our staff and
It’s a great brand, a great
team and a great business.I don’t
customers. This is the busiest time for bookings and our focus is on delivering brilliant holidays and service,” he added. “We firmly believe the outbound business can be better developed under new ownership and we’ll be working closely with our colleagues in Switzerland to find the right buyers.” Jones would not speculate on who might be interested but was hopeful talks would begin soon. “We expect to be talking to interested parties within a three-month timeframe and
Kuoni Group POST-SALE
Service provider, focused on Asia, Middle East and Africa, with three divisions representing 60% of current turnover and 8,000 staff:
■ Global Travel Distribution – B2B accommodation provider (previously FIT) with “particular focus on China, South Korea, Taiwan, Thailand and Indonesia”.
■ Global Travel Services – destination management and group travel services aiming “to significantly expand in Asian markets”.
■ VFS Global – outsourced services (eg visa processing) for governments, 1,400 Visa Application Centres in 117 countries with 70% of its turnover from Asia-Pacific.
10 •
travelweekly.co.uk — 22 January 2015
think there will be any shortage of interest
then move to due diligence.” He stressed his own
commitment to the business and said the management team hoped to retain the current staff and locations.
“I’m committed to the business right through
to the new ownership. This is a business I want to lead and am passionate about. Our biggest asset is our people. We have a motivated team,” he said.
Staff assurances In its announcement last week, the company said: “Kuoni will seek assurance about the continuation of existing business locations and continued employment of staff.” Jones said the group had been moving towards a focus on business-to-business and business- to-government travel services: for example, in buying Gullivers Travel Associates and selling off its tour operations in France and Spain. “The group has been moving to business-to-business services, away from business-to-consumer tour operating. This [sell-off] is a logical extension of that strategic route. The board has decided that is where its future lies.”
Jones dismissed concerns about the financial performance of the tour operating business or the
Derek Jones: ‘Our UK business is much
more entrepreneurial than the group’
Kuoni Group NOW
Kuoni Group is among the top- five tour operators in Europe
GROUP, 2014
■ Turnover (Swiss francs): CHF5.5bn (£4.1bn) In 2009: CHF3.89bn
■ Tour operating revenue as proportion of group business: 39% In 2009: 75%
TOUR OPERATING ARM, 2014
Includes Kuoni UK, Switzerland, Benelux, Hong Kong/China and India (Outbound Europe and Asia) and Scandinavia/Finland (Outbound Nordic)
■ Employees: 3,800 ■ Revenue: CHF2.2bn (£1.65bn)
sector as a whole. “This is not in any way a reflection of the UK business’s performance. It is a strategic decision. There is huge confidence in the sector [but] we don’t believe the tour operating side is a good fit with a business- to-business-focused operation. “Our UK business is much more
entrepreneurial than the group. I think we can thrive under new ownership,” he added. ❯ Letters, page 30
SPECIAL REPORT
Kuoni ‘can thrive under new owners’
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