NEWS — HOT STORIES 2
Agents back Kuoni and hope for ongoing support
Juliet Dennis
The trade has reacted positively to Kuoni UK being unexpectedly put up for sale but raised doubts over its future in the trade. The Swiss-owned parent is to sell its tour operating businesses, including the UK arm, to focus on business-to-business services. The 50-year-old UK business includes specialist operators Kirker, Carrier, Voyage Jules Verne, CV Villas and Journeys of Distinction, and has 35 Kuoni-branded high street travel agencies and 10 John Lewis concessions. Turnover for 2014 was CHF410 million (£308 million), or 19% of group turnover. It employs 726 staff. Miles Morgan Travel owner Miles Morgan said: “For Kuoni, it’s good news. For agents, it depends on who the purchaser is and whether it’s agent-friendly.” Alistair Rowland, Midcounties
Co-operative travel division general manager, said: “There is no reason why we wouldn’t continue supporting Kuoni.” Nick Harding, director of Travel Designers, a Kuoni partner store, said: “It’s business as usual.”
Neal Basnett, chief executive of
Elite, admitted the consortium’s Kuoni sales were 25% down last year because of its shop strategy. “The best outcome for us would be if Kuoni got rid of its shops.” Deborah King, branch manager of Departure Lounge Travel, said: “It puts doubts in your mind when booking Kuoni.” But Kuoni UK managing director Derek Jones said trade support since the news broke had been exceptional. “We are still seeing record- breaking sales through the trade.” He pledged his team
would “work tirelessly” to ensure the staff and the philosophy are maintained under new owners. Already, dnata and Tui Travel
have been mooted as potential buyers, but a senior industry source suggested “it won’t be the same company” after a takeover, adding: “Why on earth struggle on with traditional tour operating?” ❯ Special Report, page 10
3
Operators move to dispel fears of Swiss price hikes
Lee Hayhurst
Tour operators to Switzerland are holding prices despite last week’s dramatic rise in the value of the Swiss franc. The currency leapt by 30% on January 15 after the Swiss National Bank surprised the markets by scrapping a cap on the value of the franc against a weakening euro. Operators sought to reassure holidaymakers that prices will not rise. Inghams said it has enough pre-purchased, or hedged, francs to freeze summer prices to the end of February. Simone Clark, managing director at Iglu Ski, said most bookings for Switzerland are for chalets that include food and wine or half-board hotels, mitigating in-resort price inflation. She added that key issues for skiers booking this winter were snow levels and the cost of ski passes, although operators are expected to agree deals with local authorities. “We have not had any notification
from operators that there are going to be price changes. We will be encouraging people to book early
for next year before there are any rises,” said Clark. Inghams customers who took its ‘Inghams Plus’ offer could take advantage of in-resort savings that independent
holidaymakers can’t access. Hugh Watson, executive director of Inghams, said: “This sudden change underlines the value of booking early with an established tour operator so that the currency exchange rate is secured.” While hedging works in favour of the trade in Switzerland, it means plummeting fuel and currency costs for the eurozone won’t be immediately passed on to consumers. Industry public affairs consultant Andy Cooper asked: “Is this going to encourage customers to book direct and not with tour operators? This has to be a real risk.”
22 January 2015 —
travelweekly.co.uk • 5
“We will be encouraging
people to book early before any rises”
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