Following a strategic review, Kuoni’s Board of Directors and Group Executive Board have decided to focus the company’s activities on its core business as a service provider to the global travel industry and to governments.
In its new set-up, Kuoni Group will be structured into three divisions, Global Travel Distribution (GTD), Global Travel Services (GTS) and VFS Global.
These core businesses benefit from leading global positions and exposure to high growth markets. They already represent around 60% of Kuoni’s current consolidated turnover. Kuoni’s position as a unique service provider with a strong focus on Asia offers attractive opportunities to further drive growth and profitability by leveraging the Group’s scale, exploiting cross-selling opportunities and developing more new business.
In particular, Kuoni will focus on markets with attractive, long-term growth potential such as Asia, the Middle East and Africa.
The travel market environment is likely to remain fast-changing, requiring travel companies to choose distinct development priorities. Kuoni has therefore decided to focus its resources and to divest its tour operating activities.
While ranking in the ‘top five tour operators’ in Europe, the group has put its tour operating business up for sale, covering operations in Switzerland, UK, Benelux, Hong Kong/China, India and Scandinavia. New owners are expected to be found in 2015.
On a pro-forma basis, the new Kuoni Group employs approximately 8 000 people and generated a turnover of CHF 3.4 billion in 2014. Post-divestment, as a unique and clearly focused company, Kuoni Group aspires to become a leading service provider to the global travel industry and to grow significantly faster than the travel market as a whole.