Kuoni exits tour operating biz; to focus on more lucrative core activities

MUMBAI: Swiss travel company Kuoni will stop selling holidays to customers in India and several other countries as it exits its tour operating business, the company said in a statement.
“..the board of directors and group executive board have decided to focus the company's resources on those core activities in which Kuoni already enjoys a leading market position with attractive prospects. Kuoni has, therefore, decided to exit the tour operating businesses,“ it said in a release.
“This exit from the tour operating busi ness includes Kuoni ness includes Kuoni Switzerland, the UK, Benelux, Hong KongChina and India as well as operations in ScandinaviaFinland,“ the company added.

The company said in a statement that the exit will “affect“ approximately 3,800 people in total and business that generated turnover of 2.2 billion Swiss Francs in 2014. It didn't elaborate on India-specific numbers, and said without elaborating that it intends to find buyers this year.

Kuoni, in 1996, bought SOTC Holiday Tours, a travel company in Mumbai, and renamed it Kuoni India. The company didn't respond to a query seeking to know what happens to the SOTC arm and brand. The rejig will mean Kuoni is left with its Global Travel Distribution, through which it sells hotel accommodations to other companies; its Global Travel Services, a destination management arm, and VFS Global through which it manages visa application and other travel-related regulatory procedures.

Kuoni said its out-bound travel business faces “increasing challenges from changing market conditions“ as the reason for selling its tour operator segment.

Its revenue from out-bound travel declined in countries such as Japan, Asia and the Nordic region. That led to a decline of 2.8% in 2014 to 5.51 million Swiss francs.It said, however, that the exit will not impact existing customers and their current and future bookings.