Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
The annual report is also available
in French and in German.
Le rapport annuel est également
disponible en français et en allemand.
Der Geschäftsbericht ist auch in
deutscher und französischer Sprache
erhältlich.
Kuoni Travel Holding Ltd.
Neue Hard 7
CH-8010 Zurich
Phone: (+41) 1-277 44 44
Fax: (+41) 1-271 52 82
Internet: www.kuoni.com
Impressum:
Edited and published by:
Kuoni Travel Holding Ltd.,
Corporate Communications
Design/realisation/typesetting:
Kuoni Travel Ltd.,
Brochure Production
Lithography:
NC AG, Urdorf
Printing:
Benteli Hallwag Druck AG, Berne
Photography:
Blue Planet, Zurich
DigitalVision, London
Prisma, Zurich
The Image Bank, Zurich
Kuoni Bildarchiv, Zurich
Katja Snozzi, Berne
ANNUAL REPORT2000
St. Louis●
Antigua●Barbados● Bangkok
Singapore
Hong KongMumbai●●●
Taipei●
Nairobi●
Zurich●●●
Vienna●●●
Genoa●
Madrid●●
Stockholm●
Amsterdam●●
Paris ●●Cologne●
Incoming●Leisure Travel
Head offices and Incoming officesMarch 2001
● Business Travel● Hotels● Group Head Office●
Barcelona●
Nice ●
Athens●●
Budapest●●●
Rome●
Geneva ●
London
●Dorking ●
Seoul●Atlanta●
New York●
Zurich●
Europe in detail
Copenhagen ●
●●●
●
●●●
●
Tokyo●Osaka ●
C O N T E N T S
Kuoni at one glance
Mission statement 5
Key figures 6
Group organisation 8
Executive and corporate bodies
Board of Directors 11
Executive Board 12
Reporting
Report of the Chairman and the President 17
Group 23
Reporting according to Strategic Business Units (SBU)
SBU Switzerland 31
SBU United Kingdom & North America 39
SBU Europe 45
SBU Business Travel 53
SBU Incoming & Asia 57
Information Technology 61
Market environment
The European travel market 65
E-commerce 68
Company
Corporate Governance 71
Business activities 75
Staff 78
Environmental care 85
Social commitment 89
Addresses 92
Kuoni glossary 100
3
G R O U P P H I L O S O P H Y
Mission statement
We are committed to creating best value for people:
our customers, employees, shareholders and business partners.
We strive to be successful in our core business activities:
Leisure Travel, Business Travel and Incoming.
We motivate our staff by encouraging entrepreneurship and
innovation at all levels.
We think and act internationally.
We strive to enhance shareholder value.
We support environmentally friendly solutions.
Kuoni stands for reliability, best value for money, quality and
fairness in business.
5
7K E Y F I G U R E S6
Kuoni at one glance
Kuoni Group
(consolidated as at 31 December)
Turnover
By Strategic Business Unit:
Switzerland
United Kingdom & North America
Europe
Business Travel
Incoming & Asia
By Activities:
Leisure Travel
Business Travel
Incoming
Earnings before interest, taxes and
amortisation of goodwill (EBITA)
By Strategic Business Unit:
Switzerland
United Kingdom & North America
Europe
Business Travel
Incoming & Asia
Group
Ordinary group profit
Group profit
Pre-goodwill earnings
Cash flow
Investment in tangible and
intangible assets
Balance sheet total
Average number of personnel
2000CHF m
4,113
1,003
1,091
1,161
184
674
3,376
184
553
174.7
46.9
106.7
–3.3
19.2
22.4
–17.2
115.1
115.1
155.5
198.5
87.2
2,251
7,669
1999
CHF m
3,515
911
918
1,067
168
451
2,987
168
360
152.8
37.5
92.2
17.1
15.5
5.5
–15.0
113.9
87.1
144.0
156.5
168.9
1,806
6,528
2000CHF
428,940,340
102,463,080
12.41
62.03
7.20
35.97
57.51
287.55
2.401)
12.001)
970
645
700
2,240 m
2,083 m
1999
CHF
251,158,551
112,180,966
9.78
48.90
7.12
35.61
43.79
218.95
2.20
11.00
6,7902)
5,0502)
6,6102)
2,115 m
1,330 m
Kuoni Travel Holding Ltd.
Investment in equity holdings
Net profit for the year
Information for investors
Consolidated cash flow
per registered share A
per registered share B
Ordinary group profit
per registered share A
per registered share B
Consolidated shareholders’ equity
per registered share A
per registered share B
Dividend
per registered share A
per registered share B
Stock market prices
registered share B high
low
at year end
Stock market capitalisation 31 Dec
Annual trading volume
1) Proposal of the Board of Directors to the General Meeting of Shareholders
2) Former capital structure
G R O U P O R G A N I S A T I O N8 9
CorporateCommunications
Internal auditors
Assistant to CEO
Human Resources
President of the Executive Board and
Chief Executive Officer
Hans Lerch*
Chairman of the Board of Directors
Daniel Affolter
*) Member of the Executive Board
**) Member of the Group Management
March 2001
Scandinavia
Denmark
Alletiders Rejser A/S
Dane Tours
Kisbye Rejser
Sweden
Apollo Resor AB
Novair
FinanceKuoni Group
Max E. Katz*
InformationTechnology
(IT)
Konrad Iten**
New Markets
Hans Lerch*
Asia
P&O Travel Ltd.,Hong Kong
P&O Travel Pte. Ltd.,Singapore
India
SOTCSITA World Travel (Kuoni Travel India Ltd.)
Switzerland
Kuoni Reisen AG
Edelweiss Air AG
Manta Reisen AG
Privat Safaris Reisebüro AG
PRS AG
Railtour Suisse SA
Reisebüro Popularis
Rotunda Tours AG
Europe
Kuoni Reisen AGIncoming Services
Greece
Hellenic Tours S.A.
Hellenic Island Services Ltd.
Kenya
Private Safaris (East Africa) Ltd.
USA
T PRO
Charter Activities
Thomas Stirnimann*
United Kingdom
Sue Biggs**
Kuoni Travel Ltd.
Voyages Jules Verne
Caribbean
Kuoni Caribbean Hotels Ltd.
USA
Intrav, Inc.
Germany
BTI Euro Lloyd(Euro Lloyd Reisebüro GmbH & Co. KG)
Switzerland
BTI Kuoni Switzer-land (KuoniGeschäftsreisen AG)
Austria
BTI Austria(Reisebüro Kuoni Ges.m.b.H.)
Hungary
BTI Hungary(Kuoni Utazási Iroda Kft.)
France
Voyages Kuoni SA
Italy
Kuoni Gastaldi Tours S.p.A.
Netherlands
Special Traffic(Kuoni Travel Nederland B.V.)
Spain
Viajes Kuoni S.A.
Hungary
N-U-R Neckermann Utazás Kft.
SpecialistsEurope
a.i. Hans Lerch*
Business Travel
Reto Bacher*
Incoming
Ibrahim Atallah**
Specialists United Kingdom& North America
Peter Diethelm*
Austria
N-U-R NeckermannReisen AG
Reisebüro Kuoni Ges.m.b.H.
RestplatzbörseGes.m.b.H
Cosmos Ges.m.b.H
Allround Travel Inter-national Ges.m.b.H.
E X E C U T I V E A N D C O R P O R A T E B O D I E S
Board of Directors
11
Heinz Müller**, Vice-Chairman, Term expires 2002
former Executive Vice-President UBS
Claudia Depuoz* Term expires 2002
Senior Vice-President UTO-Insurance Companies
Hans Eisenring** Term expires 2002
dipl. Ing. ETH, former President of the SBB Executive Board
Geoffrey H. Lipman* Term expires 2003
CEO Green Globe 21
Prof. Dr. Gilbert Probst** Term expires 2002
Professor for Economic Sciences University of Geneva
Dr. iur. Roland Rasi* Term expires 2001
Lawyer and economic consultant
Tommaso Zanzotto** Term expires 2003
Partner und President of Toscana Ville & Castelli
*) Member of the Remuneration Committee
**) Member of the Audit Committee
Born 1954
1984 qualified as lawyer, University of Zurich
1988 Partner in the law practice «Bernhard, Affolter und Partner» in Uster
1990 Elected to the Board of Directors of Kuoni Reisen AG, Zurich
1995 Chairman of the Board of Directors ofKuoni Travel Holding Ltd., Zurich
1997 Member of the Executive Committee ofthe World Travel and Tourism Council (WTTC)
1999 Member of the International AdvisoryCouncil for Tourism (IACT), Singapore
Term expires 2003
Daniel Affolter, Chairman
13E X E C U T I V E A N D C O R P O R A T E B O D I E S
Executive Board
12
Born 1951
1967 Entrance at Kuoni as apprentice
1970–71 Stay at Kuoni United Kingdom
1971–81 Manager and Operational Branch HeadBusiness Travel
1981–86 Vice-Director General Management (abroad), Kuoni Reisen AG
1986–96 Managing Director Kuoni Reisen GmbH,Germany
1989 Qualified as Bachelor of Business Administration (B.B.A.)
1996–98 Vice-President Business Travel,Kuoni Reisen AG
In present function since 1999
Born 1941
St. Gallen School of Transport
Training at Swissair
1962 Entrance at Kuoni as Tour Manager
1966–74 Head of Tour Operating,Kuoni United Kingdom
1974–84 Chairman, Kuoni United Kingdom
In present function since 1984
Born 1955
HWV Zurich
1978 Graduated as Business Economist
1978–81 Brand Manager Unilever
1981–87 Regional Controller for Jacobs Suchard in several countries
1987–91 Vice-President Finance and Member of Executive Board at Effems AG
1991–95 Vice-President Finance and Member of Executive Board at Hürlimann Holding AG
1995 Entrance at Kuoni as Chief Financial Officer
In present function since 1995
Born 1962
1978 Entrance at Kuoni as apprentice
1981–87 Travel Advisor, Kuoni Reisen AG
1987 Purchaser North America,Kuoni Reisen AG
1989 Product Manager Travac AG
1991 Head of Marketing/Sales,Kuoni Reisen AG
1994 Head of Overseas division,Kuoni Reisen AG
1995 Head of Tour Operating Department andmember of Kuoni Reisen AG’s executive management
In present function since 1999
Reto BacherExecutive Vice-PresidentBusiness Travel
Born 1950
1970 Entrance at Kuonias Manager Incoming
1972–85 Management functions in Tokyo, Hong Kong and Singapore,ultimately as Regional Manager for the Far East
1986–89 Vice-President Incoming,Kuoni Reisen AG
1989–95 Vice-President Tour Operating,Kuoni Reisen AG
1995 Executive Vice-President SBU Incoming,Kuoni Travel Holding Ltd.
1996 Executive Vice-President SBU Switzerland and Incoming, Kuoni Travel Holding Ltd.
In present function since 1999
Peter DiethelmExecutive Vice-PresidentSpecialists United Kingdom &North America
Max E. KatzExecutive Vice-PresidentChief Financial Officer
Thomas StirnimannExecutive Vice-PresidentCharter Activities
Hans LerchPresident of the Executive Board and Chief Executive Officer
15E X E C U T I V E A N D C O R P O R A T E B O D I E S14
Born 1957
1976 Completed commercial training at Schweizerische Kreditanstalt
1977–79 Accountant/controller at Breves Treuhand
1979 Qualified as accountant/controller
1979–90 Various posts at Phibro Energy AG, Zug,ultimately as Head of Information Technology
1983 Qualified as analyst/programmer
1990–93 Managing Director of ITCO Informatic AG,Baar
1994 Entrance at Kuoni as Project Leader Incoming
1995 CFO, CIO and member of Incoming’s executivemanagement
1997 Vice-President Information Technology,Kuoni Reisen AG
In present function since 1999
Konrad ItenSenior Vice-PresidentChief Information Officer
Group Management
Born 1949
1974 Graduated as engineer agronomy at the University of Alexandria
1975–78 Sales Manager at Naggar Travel Agencyin Cairo
1979 Entrance at Kuoni as Sales RepresentativeIncoming
1984 Manager Middle East Department
1987 Manager Middle East and India Department
1990 General Manager Kuoni Far East
1997 Head of Asia/Pacific Kuoni Reisen AG,with responsibility for all Asian markets including Japan
In present function since 1999
Ibrahim AtallahSenior Vice-PresidentIncoming Services
Born 1956
1978 Graduated in English and American studies at the University of Nottingham,followed by postgraduation in tourism
1979 Entrance into the travel industry at Budget Holidays, London
1982 Entrance at Kuoni United Kingdom as Product Executive USA
1984 Product Manager
1988 Senior Product Manager
1989 Executive Product Director
1994 Deputy Managing Director
1999 Managing Director Tour Operating
Member of the Group Management since 2001
Sue BiggsManaging Director Kuoni United Kingdom
R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
With a broad spread into the future
Dear shareholders,
the year 2000 will go down as another successful year in Kuoni’s
history. Turnover and earnings before interest, taxes and amorti-
sation of goodwill (EBITA) reached record levels, and the three
Strategic Business Units (SBUs) – Switzerland, United Kingdom &
North America and Incoming & Asia – all posted extremely good
results. The SBU Business Travel can also look back on a success-
ful year in which it exceeded our high expectations. By contrast,
business in some European countries and in the SBU Europe as a
whole was disappointing.
Stronger Corporate Governance,more efficient group management
The year 2000 saw the Board of Directors taking further measures
in the area of corporate governance (see also pages 71–73);
17
Daniel Affolter, (left)Chairman of the Board of Directors
Hans Lerch, (right)President of the Executive Board andChief Executive Officer
ting and retailing. About one half of the turnover in the tour ope-
rating business comes from our specialist tour operators which,
like Kuoni UK for example, concentrate on flexible, high-value pro-
ducts at the upper end of the market. Charter and volume business
generates the other half. Specialist operators sometimes also make
use of charter flights, so it is not
possible to separate the two
activities absolutely; but specia-
list business involves fewer risks
and last year helped to compen-
sate for the partly disappointing
European charter business.
The broad geographical spread of the Group across 25 coun-
tries has a similar effect to our diversified range of activities: suc-
cesses in certain markets help to smooth out difficulties in others.
The Kuoni Group’s risk portfolio is thus very well balanced overall.
Welcome consolidation
The pace of acquisition activity slowed slightly towards the end of
the 2000 financial year. On the one hand, this is due to the fact that
acquisitions are always dependent on the opportunities that arise;
on the other hand, both the Board of Directors and the Executive
Board believe that the now started phase of consolidation is very
desirable.
The operationally challenging integration of the
companies acquired since mid-1999 into
the Group is in full swing. The Kuoni
Group has made the following
new acquisitions over the last
12 months:
• SITA World Travel of New
Delhi, taken over on 1 April
2000, has developed very well
since the successful merger with
Kuoni Travel (India) Ltd.
19R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
these included the creation of two new committees: the Audit
Committee and the Remuneration Committee. Both are made up of
independent (non-executive) members of the Board of Directors
and both focus in depth on the specialist areas concerned. Respon-
sibility remains with the Board of Directors as a whole.
In the second half of the year, we also initiated organisational
changes at the group level. The new organisational structure,
which is different to the financial reporting structure for the year
2000, is now focused on activities rather than geographical regions.
This allows us to manage individual
group activities even more efficiently.
Hans Lerch is the new head of the
Group Units “New Markets” (Asia and
India) and, ad interim, “Specialists
Europe”. Marcel Herter has switched
from heading this latter division to the
management team of the “Business
Travel” Group Unit; in this function he
is no longer a member of the Executive
Board. Thomas Stirnimann is now re-
sponsible for Scandinavia and Austria as
well as for group activities in Switzer-
land. Our British colleague Sue Biggs,
Managing Director of Kuoni UK, joined Group Management on
1 January 2001.
Broadly based risk
The Kuoni Group’s core activities are: Leisure travel, Business
travel and Incoming services. We are convinced that this diversifica-
tion across a wide variety of travel services once again proved
its worth during the period under review, contributing greatly to
the fact that the group was able to meet our high expectations
in what was a difficult year for Europe.
The lion’s share of group turnover, 82.1%, was generated by
our core business of leisure travel, which includes both tour opera-
18
“ The Kuoni Group’s
risk portfolio is
very well balanced.”
Thank you very much!
Once again all of our staff members deserve a great deal of thanks.
We would also like to welcome more than 1,200 new colleagues
who have joined the Kuoni family as a result of our acquisitions
over the course of the year. New owners often have new ideas that
inevitably bring changes, and we very much appreciate the positive
attitude shown by staff all over the world towards the changeover
and towards Kuoni’s culture.
We would like to thank our shareholders for the loyalty and
confidence they have shown in the company. The Board of Direc-
tors and the Executive Board will continue in future to do all
they can to keep the Kuoni Group on a successful course and to
add further value.
Daniel Affolter Hans LerchChairman of the Board of Directors President of the Executive Board and
Chief Executive Officer
21R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
• On 1 July 2000 Kuoni pur-
chased T PRO of New York,
the third largest provider in the
US incoming market. This firm,
too, performed very well in the
financial year under review.
• In Scandinavia, we have
been 100% owners of the Apollo
Group only since 1 January 2001.
The year 2000 was very difficult
for this company; until the end of the reporting period we only
owned a 45% stake in Apollo and thus could not influence
its performance. Now that we have taken over the company com-
pletely, however, we are carrying out a thorough reorganisation.
Successes in charter business and on the Web
Our Swiss charter airline Edelweiss Air very successfully expanded
into long-haul operations with the purchase of an Airbus A330-200.
Since the beginning of November 2000 the new plane has been
flying with very good seat occupancy rates.
E-commerce activities were taken forward pragmatically
throughout the whole group. All of the Kuoni companies now sell
many, or even all of their pro-
ducts over the Internet, though
standards do vary across the
different areas. Kuoni UK’s new
site at www.kuoni.co.uk has
been particularly successful,
generating excellent turnover
since the beginning of 2001.
Customers can use the website
– a first for the industry
anywhere in the world – to put together and book a holiday from
the entire flexible range offered in Kuoni UK’s brochure.
20
“All of the Kuoni
companies now sell
some or all of
their products over
the Internet.”
G R O U P
Successful activitiesand geographical portfolio
Despite a difficult operating environment, the Kuoni Group can
look back on a year that was successful on the whole and
brought new record results. Within the Strategic Business Unit
Europe, however, the results posted by
the individual country units varied
widely. Group turnover increased
by 17.0% to CHF 4.1 billion (1999:
CHF 3.5 billion), while earnings before
interest, taxes and amortisation of
goodwill (EBITA) grew by 14.3% to
CHF 174.7 million (1999: CHF 152.8
million). Pre-goodwill earnings posted
an increase of 7.9% from CHF 144.0 mil-
lion to CHF 155.5 million. Before deduction
of extraordinary expenses, Group profit was up
slightly on the prior year at CHF 115.1 million (1999:
CHF 113.9 million). Net profit surged by 32.1% versus 1999
results, a year in which the Group faced an extraordinary charge
to cover the merger project with First Choice. Earnings per share
also reached a new high, at CHF 35.97 per registered share B
(1999: CHF 27.23). The Board of Directors will propose to the
General Meeting of Shareholders that the dividend per registered
share B be increased to CHF 12.
The financial statements for the 2000 business year have been
drawn up under the Group structure in place until the end of
December 2000. This structure comprised five Strategic Business
23
funds. Comparative figures per
registered share B for 1999 have
been adjusted in line with this
new structure.
An analysis of turnover by
business unit gives the follo-
wing results:
• The SBU Switzerland
broke the one-billion-franc bar-
rier for the first time ever, and
posted a considerable 10.1%
increase on the prior year at
CHF 1,003 million (1999:
CHF 911 million). This growth
is even more gratifying gi-
ven that it was achieved purely
through internal efforts.
• The SBU United Kingdom
& North America saw strong
acquisition-driven growth
of 11.6%. Additional growth
of 5.9% worked through
from the currency side, giving
a total increase of 18.8% to
CHF 1,091 million (1999:
CHF 918 million). The ban im-
posed on Concorde flights
led to a contraction in turnover
at US subsidiary Intrav, and
this impacted Kuoni UK's
strong organic growth figures.
• The SBU Europe conti-
nued to top the turnover league
with CHF 1,161 million (1999:
CHF 1,067 million, an increase
25G R O U P
Units, or SBUs: Switzerland, UK & North America, Europe, Busi-
ness Travel and Incoming & Asia. The data pertaining to goodwill
was restated in the financial statements for 1999 in accordance
with a new IAS standard. By implementing International Accoun-
ting Standards (IAS) in 1997, Kuoni adopted a system which in-
volves recognising the goodwill from acquisitions as an asset. As a
result, the goodwill arising from acquisitions dating from 1995
and 1996 had to be retroactively capitalised as an asset and subse-
quently amortised. Previously, this goodwill had been charged to
equity in accordance with the accounting standards in place at the
time. This adjustment generated an increase in goodwill amorti-
sation of CHF 3.4 million in 1999, with a concomitant reduction
of Group profit to CHF 87.1 million. At the same time, some other
minor adjustments were made in respect of classifications in the
income statement.
In June 2000, the par value of shares in Kuoni Travel Holding
Ltd. were reduced in a 10-for-1 quasi share split. The trans-
action consisted of the payment of nine times the par value of the
share, and effectively resulted in a ten times quasi share split.
This brought the Group an inflow of CHF 144 million in new
24
Percentage Share ofGroup Sales 2000
SBU Switzerland: CHF 1,003 million
SBU Incoming & Asia:CHF 674 million
SBU Europe: CHF 1,161 million
SBU United Kingdom & North America: CHF 1,091 million
SBU Europe: CHF – 3.3 million
SBU Business Travel:CHF 19.2 million
SBU Incoming & Asia:CHF 22.4 million
SBU United Kingdom & North America: CHF 106.7 million
Percentage Share ofGroup EBITA 2000 per SBU
SBU Switzerland: CHF 46.9 million
Changes in Group Turnover1996–2000
CHF b
4
3
2
1
096 97 98 99 00
Changes in EBITA and Group Profit1996–2000
CHF m
175
150
125
100
75
50
25
096
EBITA Profit
97 98 99 00
Changes in Group Profit1996–2000per Registered Share B
CHF
40
30
20
10
096 97 98 99 00
SBU Business Travel:CHF 184 million
of 8.8%). Acquisition-driven growth accounted
for 4.1%, while internal growth amounted to
7.6%. From the currency side, there was a nega-
tive impact of –2.9%.
• At the SBU Business Travel,
there was a strong 9.5% increase in
turnover from CHF 168 million to
CHF 184 million.
• The SBU Incoming & Asia recorded the highest growth
in percentage terms, with a remarkable 49.4% increase to
CHF 674 million (1999: CHF 451 million). Of this increase, no
less than 17.4% can be attributed to organic growth.
In terms of percentage shares of turnover by activity, Incoming
posted a strong increase from 10.2% to 13.4%, the result of ro-
bust organic and acquisition-driven growth in this SBU. Following
the implementation of a new basis for defining turnover in 1999,
which comprises only commissions and service fees from retailing
of business travel, business travel generated 4.5% of total turn-
over, a level almost unchanged from the prior year. Leisure travel
continued to be the main turnover contributor accounting for
82.1% of revenues.
Earnings before interest, taxes and amortisation of good-
will (EBITA) grew by 14.3% from CHF 152.8 million to
CHF 174.7 million. With the exception of Europe, all units im-
proved in the year under review, which helped produce this
strong increase. The primary factors behind the growth in EBITA
were the first-time consolidation of acquisitions (+10.2%)
and the positive currency impact from the US dollar and the British
pound. The disappointing overall development in SBU Europe
meant that the organic EBITA increase for the Group failed
to match expectations. Margins remained at 4.3%, a level that
was nonetheless still higher than the average.
Despite a very difficult market environment worldwide, the
trend in financial income was extremely satisfying. At CHF 43.1
million (1999: CHF 47.4 million), we posted another excellent
result, and this contributed significantly to Group results. Conside-
rable funds were again needed to finance acquisitions in the year
under review. The securities portfolios kept for this purpose were
sold at times when market conditions were favourable, and gains
were realised. The proceeds from these sales were used to finance
acquisitions in Sweden, India and the United States. Non-realised
capital gains on the remaining small securities portfolio were redu-
ced significantly to CHF 14.6 million (1999: CHF 40.6 million).
As a result of its minority shareholdings in Apollo, Stockholm
(45%), and TUI Suisse, Zurich (49%), the Kuoni Group faced
considerable proportional expenses for associates for the first time.
At CHF 15,0 million, these expenses impacted the net financial
result. The figures also include goodwill amortisation resulting
from the acquisition of these companies. The main factor behind
the lower-than-expected result in Scandinavia is that – unlike
the companies in which Kuoni has a majority stake – Apollo failed
to cover the risks resulting from the
US dollar and aviation fuel.
Earnings before taxes and amorti-
sation of goodwill, a figure often used
for the purposes of international com-
parisons, amounted to CHF 202.8 mil-
lion, a new record (1999: CHF 200.2
million). Expressed as a percentage
of turnover, Kuoni, with 4.9%, still
tops the earnings list ahead of its nine major competitors.
Before deduction of extraordinary items, Group profit was up
slightly on the prior year (1999: CHF 113.9 million) at a total of
CHF 115.1 million. It should be noted that one consequence of the
Kuoni Group’s dynamic strategy is a continual increase in the
amount required for the amortisation of goodwill. On top of this,
the tax rate rose again in the year under review as expected, going
up to 30% from 26.9%. This trend is likely to continue over coming
years, albeit at a slower pace: the proportion of tax-privileged finan-
cial income in the holding structure is contracting on an ongoing
27G R O U P26
On 12 January 2000, Kuoni floated a bond issue on the capital
market for the first time in the Group’s history. The CHF 205 mil-
lion 2000–2005 convertible bond with a coupon of 1% makes it pos-
sible for Kuoni shares to be subscribed at a price of CHF 946.19.
This attractive issue has secured the Group the funds it needs to fi-
nance further acquisition projects at favourable conditions and,
at the same time, allowed the non-issued shares available to be put
to constructive use.
A promising start in 2001
Following the purchase in the year under review of a 45% stake in
Stockholm’s Apollo Resor, one of Scandinavia's growth travel
companies, we acquired the remaining shares in this company on
1 January 2001. This purchase gives us considerable scope to
shape results in the current business year. Apollo will be fully con-
solidated for the first time in the 2001 financial statements.
The establishment of TRX Central Europe was announced in
January of this year, with Kuoni holding 51% of the new com-
pany. This majority shareholding in TRX Central Europe, which
also involves US and UK partners, marks Kuoni’s entry into a
new segment of the travel industry: e-logistics. There are plans to
set up a fulfillment centre in Germany and one in Switzerland
in spring 2001.
In our business, predicting future demand is not easy. Never-
theless, the first indications in the current financial year are en-
couraging. In Switzerland, the early appearance of the most impor-
tant Swiss brochures and the launch of the new direct selling
brand Reisen Netto in the domestic market have had a very positive
impact on sales. In the UK, too, bookings for 2001 have got off
to an excellent start, while our French and Incoming companies are
also above-budget after the first few months of the year. Once
again it appears that, thanks to the broad spectrum of our activities
over a wide range of different regions, we can continue to look to
the future with optimism.
29
basis while the proportion of operating profit is increasing as a re-
sult of acquisitions, some of them in countries with higher rates
of taxation. Given the extraordinary expenses required in connection
with the First Choice merger project in the 1999 business year,
Group profit increased by over 32% to CHF 115.1 million (1999:
CHF 87.1 million). Organic growth accounted for a sizeable 31.8% of
this increase, while positive currency developments generated 4.2%.
Pre-goodwill earnings rose by 7.9% to CHF 155.5 million
(1999: CHF 144.0 million), which increased pre-goodwill earnings
per registered share B to CHF 48.58 (pre-extraordinary expenses
in 1999: CHF 45.01).
At CHF 35.97, earnings per registered share B reached a new
record (1999: CHF 27.23), continuing the unbroken series of
successes since 1995. Against the backdrop of Kuoni’s flexible divi-
dend policy, which envisages a distribution of 30–35% of Group
profit to shareholders each year,
the Board of Directors is pro-
posing to the Annual General
Meeting of Shareholders to
be held on 15 May 2001 that the
dividend per registered share B
be increased to CHF 12 (1999:
CHF 11).
Investment in fixed assets
decreased sharply in the year
under review, from CHF 168.9
million in 1999 to CHF 87.2
million, with the largest amounts
required to cover renovation
work at our head office in Zurich and the purchase of additional
office premises at head office to ensure our continued expansion.
In addition, the Group continued to make significant invest-
ments in the IT area. With a record cash flow of CHF 198.5 million
(1999: CHF 156.5 million; +26.8%), our equity capital is also
being steadily built up from current business activities.
G R O U P28
S B U S W I T Z E R L A N D
Best performance all along the line
The Strategic Business Unit (SBU) Switzerland set some impres-
sive new records in 2000 and achieved the best result in its
history. Consolidated turnover improved by CHF 92 million, or
+ 10.1%, to a new record figure of CHF 1,003 million (1999:
CHF 911 million), thus moving above the billion-franc mark for
the first time. Operating profit was also significantly improved
for the fifth time in succession. Despite the difficult market envi-
ronment, EBITA climbed to CHF 46.9 million, which represents
a rise of CHF 9.4 million, or 25.1%, on the previous year (CHF 37.5
million). Charter business once again accounted for a substan-
tial portion of the significant qualitative growth. More than any-
thing else, careful planning and a strategy of sensible expansion
proved their worth in a tense competitive environment.
Record results were achieved by both tour operating and retailing.
In tour operating, the launch of a new, flexible price system by
beach holiday brand Helvetic Tours was a complete success. This
innovation further underlines the fact that Kuoni Switzerland is
a market leader in technical matters, too. With over 120 sales out-
lets, retailing has become an indispensable function within the
business unit, ensuring effective sales for the products offered by
all operators and brands. With the exception of Rotunda Tours,
our Group subsidiaries can look back on a successful year.
31
Kuoni ReisenRetailing: a major success factor
Kuoni Switzerland’s travel agency division increased its adjus-
ted, non-consolidated turnover by CHF 36.9 million to an
outstanding CHF 600.3 million (1999: CHF 563.4 mil-
lion; +6.5%). The share of sales generated by
own-brand products rose once again, and
thanks to rigorous cost management and
professional product control this depart-
ment also improved its operating result.
Internet services were further deve-
loped in a targeted manner, and in sum-
mer 2001 SBU Switzerland branches will
also be taking their place in the electro-
nic world. There is a long tradition of
sales through travel agents in Switzerland,
but the amount of business done over
the Internet is steadily increasing. The Inter-
net turnover curve is trending steeply
upwards, though it is still at a low level.
33S B U S W I T Z E R L A N D
Kuoni ReisenTour operating: still in pole position
Tour operating was able to increase non-consolidated turnover by
CHF 64.8 million, to a new record of CHF 819.9 million (1999:
CHF 755.1 million.; +8.6%). Long-haul destinations in particular,
such as the Caribbean (+19.6%) and the Indian Ocean and Arabia
(+20.1%), improved considerably.
On the earnings side, operating profit recorded proportionally
higher growth than non-consolidated turnover, with gross margins
improving further in both the overseas/city trips sector and the
European beach holiday sector. Helvetic Tours’ innovative new
price system, which facilitates flexible price management according
to supply and demand, made a major contribution to this result.
Thanks to process optimisation, costs in this area fell by 4.2%.
We are also especially pleased about another clear improve-
ment in quality; the complaints rate, which was already very low,
fell by another 3% on the previous year. The Swiss travel industry
awarded Kuoni tour operating four gold Travel Star Awards for
2000: for best beach holiday, best Asia and best city trip operator,
as well as for best ticket shop. In addition, Reader’s Digest readers
chose Kuoni as the Most Reliable Travel Brand of Switzerland.
32
Percentage Share ofnon-consolidated Turnover 2000SBU Switzerland
Kuoni ReisenTour operating: 44 %
SBU SwitzerlandChanges in EBITA
CHF m
50
40
30
20
10
096 97 98 99 00
SBU SwitzerlandChanges in Turnover
CHF m
1000
750
500
250
096 97 98 99 00
Reisebüro Popularis: 6.5 %
Edelweiss Air: 5.7 %
Kuoni ReisenRetailing: 32.2 %
Rotunda Tours: 0.7 %
Privat Safaris: 1.2 %
Manta Reisen: 2.2 %
PRS: 2.8 %
Railtour Suisse: 4.7 %
Manta Reisen:Diving holiday specialist flying high
Manta Reisen, a specialist in the Maldives and diving holidays,
had a record year. Its non-consolidated turnover went up by 19.4%
to CHF 40.6 million (1999: CHF 34.0 million). Even more pleasing
is the fact that EBITA improved considerably. Manta Reisen plays
a vital strategic role, particularly on account of our important Mal-
dives business. New business areas such as wedding holidays and
India are developing very well and are set to do even better for the
company in future years.
Reisebüro Popularis:Activities streamlined
Over the course of the year
2000, Reisebüro Popularis gave
up its tour operating activi-
ties under the Coop extra
Reisen brand and reposi-
tioned itself as a pure retailing
company; Helvetic Tours’ branch offices agents
are part of this unit. At the same time, the Kuoni
Group acquired all of the shares still held by Coop Switzerland.
The firm’s head office was subsequently moved to Zurich in the
first quarter of 2001.
Despite its withdrawal from tour operating, Reisebüro Popu-
laris was able to increase non-consolidated turnover by 5.5%
to CHF 120.5 million (1999: CHF 114.2 million). EBITA is in the
black despite the one-off restructuring costs associated with
the withdrawal of the Coop extra Reisen brand. Under the Helvetic
Tours brand, the unit has added a further three branches and has
made a very good start to the business year 2001.
35S B U S W I T Z E R L A N D
Edelweiss Air:Joining the elite
2000 was another very eventful year in
the short history of Edelweiss Air. For
the first time, SBU Switzerland’s
passengers were able to travel on
the brand new Airbus A330-200
on long-haul flights, too, and
enjoy Edelweiss Air’s renowned
service. Thanks to the expansion
into long-haul business at the
beginning of the 2000 winter sea-
son, non-consolidated turnover also rose to
a new record level of CHF 105.8 million (1999:
CHF 78.5 million; +34.8%). We are particularly happy that the
Swiss travel industry voted our young and dynamic airline best
charter company, ahead of Balair and Crossair, awarding it a gold
Travel Star Award for 2000.
34
This qualitative growth was made possible by strict cost manage-
ment and attention to detail. The trend towards short trips is conti-
nuing and Railtour Suisse is ideally equipped for the future.
Rotunda Tours:Falling demand for South Africa
Even Rotunda Tours, the undisputed market leader in terms of both
quality and quantity, could not escape the effects of falling demand
in Southern Africa business. Despite innovative measures such as
its first-ever launch of a brochure in French, non-consolidated turn-
over stuck at CHF 12.6 million. The operating result fell on
account of higher spending on marketing. Not least because of this
added expenditure, Rotunda Tours should benefit more than
most if the market recovers in 2001; the current boom in East Afri-
ca business suggests that there is some justification for this hope.
37S B U S W I T Z E R L A N D
Privat Safaris Reisebüro:Comeback of the year
The long awaited upturn in East African business finally arrived in
2000. As a market leader and acknowledged specialist, Privat
Safaris was able to profit more than most from the Africa boom.
Non-consolidated turnover grew by 15.7% to a satisfying
CHF 22.9 million (1999: CHF 19.8 million). The outlook for the
coming year promises a
further improvement.
Privat Safaris’ strategy of
refusing to compromise on
quality even during its dif-
ficult period has paid off.
PRS:Turnaround accomplished
The PRS travel agencies, which operates in the Zurich region
under the brands LM Reisen, Rewi Reisen and Tevy Reisen, has
staged a turnaround and developed into a solid pillar of the
SBU Switzerland’s business. Following new management appoint-
ments, the team is now stronger and is achieving notable success.
Non-consolidated turnover went up 10.3% to CHF 52.3 million
(1999: CHF 47.4 million). Various branches were renovated du-
ring the year under review, and the new year has begun extremely
well; there is no reason why turnover should not increase further
this year.
Railtour Suisse:Success story continues
For the thirteenth consecutive year, this subsidiary of Kuoni Travel
Holding and the Swiss Federal Railways (SBB), which specialises
in rail travel and short trips, posted a record result. Non-consolida-
ted turnover increased by 12.3% to CHF 87.9 million (1999:
CHF 78.3 million), while EBITA recorded above-average growth.
36
S B U U N I T E D K I N G D O M & N O R T H A M E R I C A
The success story continues
Following the restructuring and first-time consolidation of Intrav
and Voyages Jules Verne the previous year, the new enlarged
Strategic Business Unit (SBU) United Kingdom & North America
exceeded our own ambitious expectations for the year 2000.
With turnover up from CHF 918 million to CHF 1,091 million (an
18.8% increase, and the first time the billion-franc mark has
ever been reached) and an EBITA of CHF 106.7 million (a 15.7%
improvement on the CHF 92.2 million of 1999), the SBU set
two outstanding new records for the year and laid a solid foun-
dation for a highly promising future.
Kuoni UK:across-the-board success
The core tour operating business of Kuoni UK gained further mar-
ket share in 2000. Yet it did so while still maintaining its high
profit margins which are well in excess of the industry average.
Increased demand is being felt for flexible long-haul holidays;
and Kuoni UK’s concept of “tailor-made holidays at package-tour
prices” is appealing to an ever-growing number of clients who
are prepared to pay a little bit extra for a superior service and
greater flexibility.
The investments which our SBU has made in recent years in its
people, the call centre, its information technology and its website
development now enable us to provide better service more efficient-
ly and create a genuine product and service differentiation between
Kuoni and its competitors. In fact, Kuoni UK is now Europe’s
most successful specialist tour operator, and uses predominantly
scheduled rather than charter flights.
39
January 2001 saw the launch of the SBU’s pioneering new
website, www.kuoni.co.uk. The site features detailed information
on thousands of holidays to over 50 countries. The main feature
of the new website is an interactive booking system that enables
direct clients and travel agents to take advantage of the total flexi-
bility that makes the Kuoni UK product so unique: day of de-
parture, duration of stay, airline, hotel room type and meal plan
can all be changed at the click of a button to suit individual
preferences and needs. The site got off to an excellent start: it has
already taken bookings from all over the world including
the Falkland Islands, the USA, Brazil and Portugal, and seems to
be tapping into a new potential market of British residents
abroad looking to book their holiday from the UK on the Kuoni
website.
On the product side, the launch of our World Class brochure
offering luxury holidays throughout the world was a similar
success. Indeed, we expect this new product line to make a positive
profit contribution in just its second year. And to crown an
excellent 2000, Kuoni UK won – for the 19th consecutive year! –
the Golden Globe award for “Britain’s best long-haul tour opera-
tor” as voted by the country’s travel agents.
IBUs:Different products, same back office
The restructuring of Voyages Jules Verne (VJV), our largest Inde-
pendent Business Unit or IBU, has now been completed. While
the company distributes its holidays as an autonomous direct-sales
organisation via its own and equally new www.vjv.com website,
via customer mailings and through newspaper advertising, VJV also
utilises the buying power and back-office support of the Kuoni
UK group. The Airwaves brand has been dropped, and most of the
products previously offered under the Airwaves name have been
included in the Kuoni
brochures. The Travel
Collection remains a sepa-
rate direct sell brand of
Kuoni, but to maximise the
synergies, the sales and
operations have been inte-
grated within the Kuoni
Dorking tour operation.
The Far East Travel
Centre moved into its new offices, appropriately located in Lon-
don’s Chinatown, from where it provides both Chinese and British
clients with special air fares and individually tailored holidays to
the Far East. All the other IBUs (Student Travel, Trade Fairs, Sport
Abroad, Incentives and Specialist Travel) are now located under
one roof in a building adjacent to Kuoni UK’s Dorking head office.
Like VJV, these IBUs also enjoy the independence they are given
to create and market their own products, yet can still benefit from
Kuoni UK’s overall infrastructure and back-office support.
USA:Intrav does well despite the Concorde setback
For Intrav and Clipper Cruise Line, our US subsidiaries, 2000 was
the first full business year under Kuoni ownership. After an event-
ful but excellent first six months, Intrav suffered a material setback
41S B U U N I T E D K I N G D O M & N O R T H A M E R I C A40
SBU United Kingdom & North AmericaChanges in EBITA
CHF m
100
80
60
40
20
096 97 98 99 00
SBU United Kingdom & North AmericaChanges in Turnover
CHF m
1000
800
600
400
200
096 97 98 99 00
programmes for both scheduled and private charter flights as soon
as possible.
The four small cruise ships (carrying 90 to 128 passengers) will
continue to operate on exclusive itineraries from Alaska to the
Antarctic and from US coastal cruises to the Grenadines, visiting
away-from-it-all places which bigger vessels cannot reach.
43S B U U N I T E D K I N G D O M & N O R T H A M E R I C A
when Concorde operations were suspended following the July crash
in Paris of an Air France aircraft. Intrav is the market leader in
private jet charters; and Concorde was the flagship in the com-
pany’s programme, offering prestigious 17-day “around-the-world
holidays” by supersonic jet for around USD 50,000 per person.
With Concorde presenting such a unique and irreplaceable attrac-
tion, the loss of this business could not be made up for in the
second half of the year.
The USD 12 million in turnover lost through the cancelled
Concorde flights and the corresponding decline in gross profit were
reflected in the SBU’s results for the year. Nevertheless, Intrav’s
management produced some excellent results from the small-ship
operations of Clipper Cruise Line and the conventional private
jet programmes and, despite the loss of the Concorde business, the
US subsidiaries made a very positive contribution to the SBU’s
overall EBITA result.
Intrav also commenced planning for the launch of “Intrav à la
carte” – an adaptation for the US market of the Kuoni UK con-
cept for “tailor-made holidays at package-tour prices”. The Intrav
à la carte Europe and Asia brochures are now available, and
the corresponding computer systems were due to be set up during
the first quarter of 2001. We expect to see some limited sales of
this new product during the current year, followed by a substantial
increase in business in 2002/03.
A further Intrav product
innovation is the new and
exclusive round-the-world flight
in a specially reconfigured
luxury Boeing 747 Jumbo Jet in
which the usual 400 Economy
Class seats have been replaced
with just 100 First Class seats and
two bars. Should Concorde
return to service later in 2001,
Intrav plans to launch new
42
Time to pass on the baton
It was 35 years ago that Jack Bolli (who was then Kuoni Group
CEO and was my mentor for many years) and I started our
tour operation in the UK. We have come a long way since then;
and at the end of 2001 I shall hand over full operational
responsibility for all of Kuoni’s activities in the UK to my suc-
cessor, Sue Biggs. During her 19 years with the company, Sue has already made
a great contribution to the success of Kuoni UK; and our well-known business philo-
sophy of ”Quality before quantity and profit before market share”, which we have
pursued for many years, will be in safe and experienced hands.
From January 2002 I shall assume, on a part-time basis, the chairmanship of Kuoni
UK, of Intrav and Clipper Cruise Line in the USA, and of our hotels in the Carib-
bean. So I shall remain very much in touch with the Kuoni Group and its future de-
velopment.
Three years ago, I said – half seriously, half jokingly – that before I reached the age
of 60 and handed over my executive responsibilities to my successor, I expected our
SBU to achieve CHF 1 billion in turnover and an EBITA of CHF 100 million. Well, those
results came a year early! It now only remains for me to thank all my management
and staff for their great support and for the superb results they have achieved.
Peter Diethelm
Executive Vice-President Specialists United Kingdom & North America
S B U E U R O P E
A picture of light and shadow
In the year under review, the national companies within
the Strategic Business Unit (SBU) Europe performed with widely
varying degrees of success. But with turnover amounting to
CHF 1,161 million (1999: CHF 1,067 million; +8.8%), SBU Europe
continues to remain the unit with the highest turnover. On
the other hand, results were disappointing with EBITA showing a
loss of CHF –3.3 million (1999: 17.1 million). In the year ended,
Kuoni France and Kuoni Spain performed very well. The subsidia-
ries in Denmark, The Netherlands, Austria and Italy had to con-
tend with difficult market conditions and a less than satisfactory
profit situation.
Austria:Kuoni as retailing brand
As part of operations to streamline the portfolio, Kuoni withdrew
from tour operations carried in Austria under its own name at
the end of the 2000/2001 winter season and closed Kuoni Reisen
Veranstaltungs AG. However, with N-U-R Neckermann Reisen AG,
we still succeed in having a presence in the tour operating busi-
ness. In future, the Kuoni brand will concentrate its activities in
Austria on selling leisure travel, which has performed highly
satisfactorily.
45
Tour operating: modest performance
N-U-R Neckermann, in which Kuoni holds a majority interest of
51%, increased turnover from CHF 294 million to CHF 299 mil-
lion (+1.7%) despite volatile market conditions; however, earnings
failed to meet the previous year’s positive performance. The level
of turnover recorded by N-U-R Neckermann Reisen AG – number
two on the Austrian market – was not quite in line with the
number of travellers, mainly because of an increase in products
such as city holidays or holidays where guests make their own
travel arrangements, all being considerably cheaper on average than
air travel.
Of the new markets bordering Austria in which N-U-R
Neckermann operates, Hungary continued to perform satisfacto-
rily, at the same time starting to expand its sales channels. At
the moment, the company has 21 of its own branch offices in Hun-
gary. After a rocky start in the previous year, activities in Slova-
kia and Slovenia likewise showed positive trends in the year under
review.
Asia specialist, Allround Travel International (ATI), saw a
9.1% drop in turnover in the year 2000 from CHF 8.8 million in
1999 down to CHF 8.0 million in 2000. This was due to the weak
euro and the associated increases in flight and hotel prices. The
competitive nature of market conditions to a large extent prevented
any price increases. Thanks to strict cost management, however,
it was still possible to achieve good results.
Retailing: continued expansion
Our retailing organisation, Reisebüro Kuoni Ges.m.b.H., once
again can look back on a good financial year. Thanks to a targeted
and rigorous product policy as well as continued productivity
gains, the organisation saw an increase in turnover and earnings
despite a continued fall in commissions. Growth in turnover of
3.7% to CHF 14.2 million (1999: CHF 13.7 million) was generated
solely by organic means.
Including Okay Reisen, which was acquired in November
2000, Kuoni now has its own distribution network comprising
41 sales outlets, plus a further 28 outlets operated by franchisees
(Kuoni Travel Partners).
47S B U E U R O P E 46
SBU EuropeChanges in Turnover
CHF m
1000
750
500
250
096 97 98 99 00
Percentage Share of Turnover 2000SBU Europe
Austria: 32.0%
Spain: 3.0%
Netherlands: 5.1%
Denmark: 16.5%
Italy: 21.2%
France: 22.2%
SBU EuropeChanges in EBITA
CHF m
15
10
5
0
–596 97 98 99 00
France:Above-average growth
In a market characterised by an ongoing concentration process,
Kuoni France once again enjoyed considerable success in the year
2000. Whereas the market grew by around 8%, our French sub-
sidiary succeeded in increasing turnover by 15.2% to CHF 258 mil-
lion (1999: CHF 224 million).
And once again, Kuoni
France also recorded above-aver-
age improved earnings. All di-
visions had a role to play in con-
tributing to this satisfactory
result. Traditional tour operating
recorded satisfactory growth,
as did the specialist business of
Scanditours, group sales and
alternative sales channels via
supermarkets. The traditional
sales network recovered from its previous year’s downturn and like-
wise contributed to the excellent results. Owing to the new
Employment Law stipulating a 35-hour week, Kuoni France saw a
considerable increase in its level of staffing.
Italy:Expansion of product range
Despite a rather modest trend on the Italian market, turnover of
our Italian joint venture, Kuoni Gastaldi grew in the year 2000
by 3.8% to CHF 246 million (1999: CHF 237 million).The rise in
kerosene costs and the strong US dollar had a negative effect on
sales particularly in the low season and on earnings.
During the year under review, Kuoni Gastaldi continued to
expand its range of chartered products and included some
destinations popular on the Italian market such as the Cape Verdi
islands. The new product “resorts” stands for holiday villages
and all-inclusive clubs especially developed by Kuoni Gastaldi and
49S B U E U R O P E
Restplatzbörse, specialising in the sale of last-minute package
holidays and flight tickets, continued to expand rapidly with a
53% growth in turnover to CHF 5.2 million (1999: CHF 3.4 mil-
lion), thus strengthening its position as the leading last-minute
specialist.
Denmark:Ongoing competitive pressure
As from 1 January 2000, the Danish scheduled flight specialist
Dane Tours as well as the Kisbye Rejser travel agencies with
four branch offices in the east of Denmark joined the Kuoni Group,
whose activities in Denmark in the form of Alletiders Rejser S/A
had previously concentrated on the chartered flight market.
In the year under review, the market has been characterised by
overcapacities and price pressure. Continued competitive pres-
sure had an effect on the result of Alletiders Rejser in the first six
months. The 24.8% growth in turnover from CHF 153 million
to CHF 191 million is mainly attributable to the acquisition of
Dane Tours and Kisbye Rejser.
In the year 2000, Alletiders Rejser was chosen as the best
Danish charter tour operator and Dane Tours as the best scheduled
flight specialist. Furthermore, the tour operator won an award
for having the most comprehen-
sive Thailand programme
in Denmark.
48
The Netherlands:Reorganisation completed
The year under review saw a vir-
tual end to the restructuring
measures undertaken in 1999
to our Dutch subsidiary
Special Traffic. Despite a delay to
technical reorganisation, turn-
over could be maintained at the level of
the previous year with CHF 59 million.
The new electronic direct sales channel, Net-
vacations, went live in April 2000 and by the
year-end had achieved sales of CHF 0.6 million.
With the standardisation of products and working processes,
both productivity and availability for sale were hugely improved.
Alongside optimising processes throughout the entire organi-
sation, management also carried out a review of major suppliers
and where necessary, entered into co-operative agreements with
new partners. Special Traffic won the following awards in the year
2000: best specialised tour operator, best foreign travel tour
operator, best tour operator for North America and for the first
time, best tour operator for Asia.
51S B U E U R O P E
tailored to the needs of its customers. This market segment –
club holidays with individual customer care and organisation – has
shown continuous growth on the Italian market for over five years.
With the continuous growth of chartered holidays – also
available via the Internet since Summer 2000 – as well as the re-
organisation of the marketing and sales structure and the opening
up of new, alternative sales channels such as banks, supermarkets
and insurance companies, Kuoni Gastaldi is continuing to ex-
pand its position on the Italian market. The company already leads
the way in the area of à-la-carte holidays with scheduled flights,
once again establishing itself in the year 2000 as the market leader
for the two most popular destinations – Australia and the USA.
Spain:Successful turnaround
Thanks to restructuring measures introduced in 1998, the year
under review saw a turnaround bringing Kuoni Spain once again
into the black. With rigorous marketing, product innovations,
flexible service and a highly motivated team, turnover was
increased by more than 17% (2000: CHF 35.5 million; 1999:
CHF 30.3 million). Market share increased in all areas and destina-
tions such as Thailand, Indonesia, Indochina, the islands in the
Indian Ocean and some destinations in South America, recorded a
plus of more than 50%.
Despite the strong dollar, the
Spanish subsidiary even saw
growth of almost 10% compa-
red to the previous year for
the most popular destination –
the USA. And a well-known
local newspaper named Kuoni
Spain as the best tour operator
in the year 2000.
50
S B U B U S I N E S S T R A V E L
A changeover bearing fruit
The Strategic Business Unit (SBU) Business Travel underwent a
worldwide reorganisation during the year under review. The new
organisation reflects the international focus of the SBU’s busi-
ness operations, and with its streamlined structures, it also takes
account of the ongoing squeeze on margins in this segment.
As airlines continue to reduce the commissions they pay, the SBU
is having to reposition itself as a customer-financed service
provider. In Germany and Switzerland in particular, the change-
over to a new payment model is already well advanced and is
beginning to bear fruit.
The Business Travel unit achieved
a pleasing improvement in
results for the year 2000. The
definition of turnover was
changed in the previous year to
match European practices, and as
a result the increase in turnover may
not appear especially significant at first
sight. This is deceptive: in an environment
characterised by profound change, business travel is developing
along a solid growth trajectory. With total invoiced sales of appro-
ximately CHF 2 billion, the unit is left with turnover – equiva-
lent to gross profit – of CHF 184 million (1999: CHF 168 million)
or an increase of 9.5%. The EBITA improved by a huge 23.9%
from CHF 15.5 million to CHF 19.2 million, which exceeded our
expectations.
53
Austria:Reduction in commissions absorbed
Business travel in Austria developed very pleasing. The reduction
in commissions paid by airlines from nine to seven percent,
introduced in January 2000, could be almost completely absorbed.
Nevertheless, turnover was slightly down on the previous year:
it fell by 7.0% to approximately CHF 6.6 million (1999:
CHF 7.1 million). Owing to certain alterations the
conference travel specialist Commerz Reisen,
which joined the BTI organisation in 2000,
was not able to fill the seat allocations it had
purchased to the extent expected.
Hungary:Holding steady
As expected, the Hungarian company Kuoni
Utazási Iroda maintained its results at the previous
year’s level. Turnover remained at CHF 0.5 million.
55S B U B U S I N E S S T R A V E L
Germany:More and more successful
The reorganisation of 1999, and the subsequent clearer focus
on activities, is now bearing fruit: turnover at the German company
Euro Lloyd Reisebüro GmbH &
Co. KG was 9.7% better at
CHF 101.7 million (1999: CHF
92.7 million). The main pillar
of this success with almost 80%
of overall turnover was the
core activity of business travel,
with the brand BTI Euro Lloyd.
The tourism and group tours
division also developed very satis-
factorily. In May 2000, sports
travel activities were organised into their own separate division,
and the airport offices were also brought under a single manage-
ment structure within a new division. The German unit has thus
consistently pursued the concentration on activities: each area is to
establish its position in the market largely autonomously, a stra-
tegy that is also reflected in the brand policy.
Switzerland:Undisputed number one
For years now, BTI Kuoni Switzerland has been the leader by
quite some distance in the Swiss business travel market. The com-
pany has not only been able to maintain this position but has
increased its lead still further: its 11.7% improvement on the pre-
vious year is far higher than the market average. Turnover went
up to CHF 75.4 million (1999: CHF 67.5 million).
With retrospective effect from January 2000, Kuoni’s incentive
and special travel department was transferred in May to the BTI
organisation, where it, together with the conference travel depart-
ment, will complement the range offered by BTI Event Solutions
perfectly.
54
SBU Business TravelChanges in EBITA
CHF m
20
15
10
5
096 97 98 99 00
SBU Business TravelChanges in Turnover
CHF m
200
150
100
50
096 97 98 99 00
S B U I N C O M I N G & A S I A
Impressive expansion
In 2000, the SBU Incoming & Asia made a quantum leap.
Together with the solid organic development of the other units,
the new subsidiaries T PRO in the United States and SITA World
Travel in India have contributed to the SBU’s impressive ex-
pansion. Total turnover increased by 49.4% from CHF 451 million
to CHF 674 million. The CHF 16.9 million improvement in EBITA
to CHF 22.4 million (+ 307%) was even more remarkable.
Incoming Services Europe:Strong growth
Thanks to the diversification of our core Incoming Services Europe
business across different markets, the unit achieved very satisfac-
tory growth during the year under review. Turnover rose 19.5% to
CHF 393 million (1999: CHF 329 million). In addition to Japan,
which is traditionally the most important market for holidays
to Europe, the US market was a major contributor to the positive
result; this was primarily due to the famous Oberammergau
Passion Plays, which take place every ten years and are very
popular among Americans.
Despite the stagnation of the market and
more intense competition, our organisation
in Japan achieved above-average results. Far
Eastern source markets are recovering steadily.
57
USA:Market entrance as number three
T PRO is also active in incoming business and has been a subsi-
diary of the Kuoni Group since July 2000; it is the third largest
operator in the US market and has lived up to our expectations in
full. By acquiring T PRO, the group has established a foothold
in the rapidly growing American incoming market. Half-year turn-
over surpassed the CHF 100 million mark, which suggests that
T PRO will make a major contribution to the SBU’s results in 2001.
Hong Kong and Singapore:Excellent recovery
The economic situation and,
therefore, consumer sentiment
have greatly improved – especial-
ly in Hong Kong. Both joint
venture companies, P&O Travel
Hong Kong and P&O Travel
Singapore, have scored successes,
especially in business travel, and have produced good overall results.
Turnover rose from CHF 50.8 million to CHF 62.2 million
(+22.4%).
India:Successful expansion
The purchase of SITA World Travel has increased the size of Kuoni
India almost fivefold. The merged company’s billed gross turn-
over makes Kuoni the market leader on the Indian subcontinent.
Local management has done an excellent job integrating the new
firm, and the results achieved this year are better than expected.
Turnover, which includes SITA turnover from the second quarter
of the year under review, came to CHF 81.5 million (1999:
CHF 40.4 million; +102%).
59S B U I N C O M I N G & A S I A
Greece:Good results
Both of our Greek subsidiaries, Hellenic Tours
and Hellenic Islands Services, which are also engaged
in incoming business, once again achieved an above-
average result. Turnover went up 14.3%
to CHF 29.6 million (1999: CHF 25.9 million).
The company established itself as one of
the leading incoming operators, not only on
the mainland but also on the Greek Islands.
Kenya:Healthy recovery
Our East African subsidiary Private Safaris (East Africa) Ltd.,
which runs an incoming operation, is enjoying a marked recovery
and achieved a very positive result in 2000. Turnover increased
32% to CHF 6.6 million (1999: CHF 5.0 million).
With Kenya re-establishing itself as an attractive destination,
we have high hopes for the future of this company.
58
SBU Incoming & AsiaChanges in Turnover
CHF m
800
600
400
200
096 97 98 99 00
SBU Incoming & AsiaChanges in EBITA
CHF m
20
15
10
5
096 97 98 99 00
I N F O R M A T I O N T E C H N O L O G Y
Fast and solutions-oriented
Following a millennium change-over that passed off without a
hitch, in the year under review the Group unit Information
Technology (IT) pressed ahead with its main themes of standard-
isation and consolidation. Work continued on the Kuoni
Group's e-commerce projects, using a strategic approach which
incorporated a calculated degree of risk, while we took care not
to jump on the “dot.com" bandwagon, which has since turned
out to be something of a short-lived phenomenon.
It was not only the information technology sector that awaited last
year’s millennium changeover with a certain degree of apprehen-
sion; however, the various doom scenarios prophesised failed to
materialise. Thanks to careful planning, the millennium changeover
passed off without a hitch the world over. For the Kuoni Group,
too, the year 2000 started without any problems.
New ground-rules in e-commerce
Without a doubt, the key word in the year
under review – and not only for new-
economy companies – was
“dot.com”. Many companies
caught “dot.com fever”
and pumped millions into
Internet projects. As reports
of various dot.com outfits
going bust and running
into difficulties grew
over the last few months
of the year, however,
several companies began
61
Grouping together of IT competencies
In the year under review, the centralised and decentralised IT units
in the Kuoni Group intensified the level of co-operation between
them to ensure that maximum use was made of the synergies avail-
able. Today’s competitive environment is shaped by globalisation,
rapid technological developments, severe price pressures and short
time-to-market periods. Against this backdrop, grouping together
IT competencies at Group level is crucial if we are to continue to be
able to react quickly and in a solutions-oriented manner.
The dedication of the entire unit was vital in helping us
achieve our objectives in the year under review and allowing us to
increase the level of client satisfaction even further.
63I N F O R M A T I O N T E C H N O L O G Y
to question their ambitious projects,
in some cases even opting for major
re-dimensioning projects.
Kuoni’s strategy was in sharp con-
trast to the approach adopted by most companies
– after careful analysis and the incorporation of a cal-
culated degree of risk, we launched various realistic e-commerce
projects primarily geared to country level, in light of the still strong
local dimension of the travel business. After an analysis conducted
by one of our project teams, we decided not to pursue the idea
of building up a global travel portal. The subsidiaries in the Group
continued to develop their Internet sites with a view to being able
to book the entire product online, and strengthened their leading
positions in this area in their respective markets. By way of an
example, since the beginning of the
year 2001 it has been possible to
book virtually all Kuoni UK’s com-
plex brochure offerings via the
Internet.
Standardisation reducing costs
Efforts aimed at increasing the
standardisation and consolidation
of the Group’s IT operations con-
tinued during the year under
review. The standards established
reduced the time and effort ab-
sorbed by support activities and,
as a result, brought down costs.
In a further bid to reduce the time and costs required for develop-
ment and training, we migrated various applications to open
systems. In an open system, various products from different IT
sources can run together thanks to a defined standard. This
reduces the level of complexity involved, shortens the development
phase and enhances quality for users and clients.
62
T H E E U R O P E A N T R A V E L M A R K E T
European top ten continue to grow
The European travel market remains in flux. The merger merry-
go-round continued throughout 2000, with the media showing
particular interest in the competitive battles between
the vertically-integrated travel groups in the British and
the German markets.
Europe’s biggest travel corporations con-
tinue to expand. Not only did the travel
sector post stronger growth for 2000 than the
economy as a whole; results for the year were
further buoyed by substantial increases in sales,
themselves at least partially the product of several
major takeovers, especially by the continent’s top two of Preussag
and C&N. The prime reasons for these large-scale expansion
policies can be found in a desire among these vertically-integrated
companies to secure optimum occupancy for their high-cost ca-
pital assets such as aircraft and hotels.
The European top two: Condor & Neckermann (C&N)
underlined its European ambitions by acquiring Havas Voyages of
France (with 380 travel agencies and 1.6 million guests) and
following this with a bid for Thomson Travel. However, C&N was
outbid here by Preussag (TUI Group), Europe’s overall market
leader, which now owns Thomson Travel (including Britannia Air-
ways, the Lunn Poly travel agency chain and Fritidresor
in Scandinavia with total sales of CHF 6 billion
a year). In the wake of the acquisition,
Preussag shed its share in UK-based Thomas
Cook, acquired the previous year, at the in-
sistence of the competition authorities.
65
The UK: In addition to
Thomson Travel and Thomas
Cook, both now in German
hands, the UK market has two
other members of Europe’s
top ten in Airtours and First
Choice. Following a flurry
of acquisition activity in the pre-
vious year, 2000 proved a
quieter affair for market leader
Airtours as it concentrated on
stemming its own declining pro-
fits. First Choice is now also
active in the German market fol-
lowing its acquisition of Nazar,
a tour operator specialising in
Turkey and Egypt.
Globally active: The Kuoni
Group also continued to grow, with selected acquisitions in
certain key markets. Having increased its holding in Swedish tour
operator Apollo Resor AB from 45 to 100 per cent and acquired
tour operator Dane Tours and the Kisbye Rejser travel agency chain
in Denmark, Kuoni is now number three in the Scandinavian
market after SLG (Airtours) and Fritidresor (Preussag). In contrast
to the other major European operators, Kuoni also enhanced
its position in markets outside Europe such as the USA, where it
acquired incoming operator T PRO, and India, where, with the
purchase of SITA World Travel, it is now market leader in all busi-
ness areas (Incoming, Outgoing and Business travel).
67T H E E U R O P E A N T R A V E L M A R K E T
C&N then took the opportunity to acquire Thomas Cook, se-
cure a foothold in the UK and become Europe’s second-biggest tour
operator.
C&N now has 28,000 employees, 70 aircraft, 3,800 travel
agencies, 30 tour operator brands, 53,000 hotel beds and 15 mil-
lion customers a year. Preussag, originally a steel company, now aims
to generate some 80 per cent of its revenue from tourism, and will
have 66,000 staff, 76 aircraft, 3,200 travel agencies, 63 tour opera-
tor brands, 96,000 hotel beds and 17.4 million customers a year.
Germany: In Germany, which is home to Europe’s top two
travel groups, the market is led by TUI Group (28%) followed
jointly by Rewe and C&N (with 22% each). Alongside DER and
ITS, the Rewe trading group now includes LTT, the former tourism
division of the LTU group, which it recently acquired from the
SAirGroup. The leading three are followed – at some distance – by
FTI, a subsidiary of the UK’s Airtours, which has been displaced
from number two to number
three in the pan-European
rankings by the rise of C&N.
France: While one half of
all German vacationers’ holi-
days are booked as package
tours, only 30 per cent of
French travellers take their
vacation in this form. Preussag
responded to C&N’s venture
into the French market
through its new Havas holding with its own acquisition (initially
of 13%, though this should be gradually increased to 34.4%)
of French market leader Nouvelles Frontières, which operates 22
hotels and 236 travel agencies and has 2.4 million customers.
Still independent of any major travel group is Club Méditerranée:
the company, which is focusing increasingly on the leisure sector,
saw a 28-per-cent increase in its turnover for the year.
66
0 5 10 15 20
Preussag (D)21 b
C & N (D)13 b
Airtours (UK)11 b
Rewe (D)5.3 b
First Choice (UK)4.7 b
Club Mediterra-née (F) 2.9 b
Kuoni (CH)4.1 b
Hotelplan (CH)2.2 b
Alltours (D) *1.3 b
Alpitour (I) *1.1 b
in CHF b
2000 turnover in CHF of the top ten European travel companies:
(new investments in equity holdings included)
*estimation
USD 13 billion of business last
year, a figure which is predicted to
grow to USD 20 billion for 2001.
At the same time, however,
questions are beginning to be
asked about just how steep this
growth curve might be. The pun-
dits have also detected a sizable
rise in the numbers of Americans
who have turned their back on the Web, which rose from 10 million
to 28 million between 1997 and 1999.
It is a trend that is likely to show sizable variations from coun-
try to country. In Scandinavia, for example, the relative rarity of
travel agencies has tended to encourage greater use of the Internet
than elsewhere.
In the UK, meanwhile, and now also in Germany, interactive
television is showing increasing signs of emerging as a new tra-
vel retail channel. TV Travel Shop (TVTS), in whose British parent
company Kuoni holds a 12.5-per-cent equity stake, generated
over CHF 300 million in turnover for 2000. TVTS is already a key
sales channel for the UK’s major tour operators, and accounts
for some five per cent of their total travel turnover.
The new medium of the Internet has also attracted providers
with no previous tourist business experience. With a few excep-
tions, most of these have already disappeared again, the victims of
last year’s New Economy downturn. As events have shown,
the traditional travel and tourism companies, being able to de-
termine the content of their own products, still hold certain
trumps for their online activities. At the same time, current trends
are underlining the fact that, even in the age of the World Wide
Web, the travel business is still a strongly localised affair: in the
package holiday sector in particular, it is those operators who
are active in the local market who enjoy the greatest confidence
among Internet users.
69E - C O M M E R C E
Global net, local business
Electronic distribution is nothing new to the travel trade.
The industry has long been comprehensively networked between
airlines, tour operators and travel agencies in the business-
to-business sector. But with the growing use of the Internet by
consumers, whether it’s to prepare their trip or make their
bookings online, the role of e-commerce has grown considerably
over the last few years. Thanks to its early experience in the
field and its existing electronic infrastructure, the tourist sector
is well placed to exploit the new business channels.
Hardly any sector of industry has such an Internet-friendly product
as the travel and tourist trade. The only physical logistics involved
are the mailing of the various travel documents; and ticketless tra-
vel should simplify both this and online reservations soon. For the
consumer, it’s not just for bookings that the Internet holds such
potential. In planning their trips, too – comparing offers, checking
availability, finding out about destinations – the World Wide Web
offers a vast range of possibilities. Yet despite a steady increase
in Internet user numbers, the personal discussion with the travel
agent still remains a service that many customers desire.
Projections vary on how
much leisure and business travel
is likely to be arranged via
the Internet in future. For Eu-
rope market research suggests
that the volume handled online
will double from its 2000 figure
of USD 3 billion to USD 6 bil-
lion. The US online travel
market accounted for almost
68
Kuoni on the Internet in 2000
Turnover (CHF million) Hits (million)
• Group 97.8 33.5
• Scandinavia 72.7 5
• Switzerland 9.4 9.5
• Austria 6.8 14.8
• The UK 5.9 0.5
• Italy 2.6 0.2
• France 0.5 3
C O R P O R A T E G O V E R N A N C E
A tool for transparency
With processes accelerating all the time and changes a constant
concern, managers today are under permanent pressure to
analyse situations and take the decisions required. The principles
of Corporate Governance provide a sound and solid framework
in which to fulfil these requirements.
Corporate Governance structures the forces and influences at work
at the head of an organisation, and offers a set of rules for ad-
dressing the interests of the company’s stakeholder groups. To help
strengthen its Corporate Governance and the principles it provides,
the Kuoni Board of Direc-
tors created two new
bodies – the Remunera-
tion Committee and the
Audit Committee – in
the course of the year.
To ensure their
autonomy, each of the
new bodies is composed
of non-executive Board
members. Among other
activities, the Remune-
ration Committee has
already reviewed the
salaries of the Group’s
top executives, in con-
sultation with inter-
national specialists. The Audit Committee, which ensures that the
company’s financial principles are properly observed, has drawn up
a charter for its activities, in association with the internal and
external auditors.
71
“Corporate Governance
provides an international
benchmark for our busi-
ness activities; as those
continue to grow on a
global stage, the impor-
tance of Corporate Gover-
nance is increasing, too.”
Daniel Affolter,Chairman of the Board of Directors
• controlling and treasury functions are continually optimised to
ensure high efficiency
• the total emoluments of the Executive Board and the Board of
Directors are disclosed
• employees are offered continuous training and education
• responsibility towards society and the environment
Being active in the travel
and tourism sector poses a
particular challenge. Not only
must Kuoni’s Corporate Gover-
nance embrace traditional
stakeholders such as em-
ployees, customers and
shareholders; it must also
extend to its service providers
and other parties at its destinati-
ons around the world. Thus, for Kuoni,
Corporate Governance is not just a matter
of organisational structures, corporate bodies
and definitions of duties and obligations. Kuoni sees Corporate
Governance as an attitude, to be adopted and experienced
every day; an attitude through which it pays due and full regard
to all its stakeholders, both through and beyond its immediate
business activities.
73C O R P O R A T E G O V E R N A N C E
Further examples of Kuoni’s Corporate Governance include:
• the majority of the Board of Directors is composed of indepen-
dent individuals
• appointing separate persons as Chairman of the Board (for strate-
gic management) and CEO (for operational management)
• providing maximum accounting transparency by compiling the
consolidated financial state-
ments in accordance with
the International Accounting
Standards (IAS)
• a professional risk manage-
ment is in place to deal with
the risks to which the com-
pany and its stakeholders
are exposed
• Kuoni attaches great value
to competent and proactive
communication with
stakeholders in and outside
the company
• Group strategy is subjected to regular review
• the planning and budgeting systems, with their short-term,
medium-term and long-term annual budgets, are subject to the
Board’s approval
72
“Corporate Gover-
nance offers a set of
rules for addressing
the interests of
the company’s
stakeholder groups."
Daniel Affolter,Chairman of the Board of Directors
B U S I N E S S A C T I V I T I E S
Three strong pillars
From classic beach holidays via safaris and cruises to carefully
tailored group, business and incentive travel, the range of
the Kuoni Group’s products is as vast as it is varied. Those pro-
ducts (and their production) broadly fall under three “pillars” of
activity – Leisure Travel, Business Travel and Incoming. Of these,
Leisure Travel (which includes Tour Operating and Retailing)
is by far the biggest, accounting for 82.1% of total group turn-
over. Effective travel budget management is a key specialisation
of our Business Travel unit, while Incoming is primarily con-
cerned with organising inbound travel arrangements for tour
operators abroad.
Leisure Travel
Devising, organising and sel-
ling holidays are the core
competencies of our Leisure
Travel sector. First, Tour
operating selects the most
attractive destinations, seeks
out knowledgeable local agents
and works with them to conclude agreements with local hotels,
transport companies and other service providers. It also buys-in the
quotas it needs on charter air services, and arranges local transfers
and excursions.
At bigger destinations, Kuoni has its own guide organisation.
And in the mid-to-high-price market, we distribute our products
under the Kuoni name – a brand that enjoys an excellent image as a
quality service provider, not only in its Swiss home market but
also in countries such as the UK and France. Further brands are
used to appeal to additional markets and customer groups.
75
Incoming
Our Incoming specialists organise group and individual land arrange-
ments in Europe, East Africa, India and the United States on be-
half of international tour operators. From snowmobile safaris in
Lapland to the culinary delicacies of
Ancient Rome and helicopter flights
over France’s Loire Valley, each Inco-
ming product is carefully crafted to
each client’s wishes and needs.
While the unit’s Greek and
Kenyan subsidiaries focus on custo-
mers from Europe, the 526 staff at
Incoming Services Europe devote most
of their energies to visitors from
the USA, Japan, India and other Asian
nations. Incoming Services Europe
also runs a network of 13 Destination
Management Companies in Europe,
whose clients also include travel agen-
cies in South America, Eastern Europe
and the Near East.
Alongside the “classic” tours, special-interest and incentive
tours, seminars, conferences and study trips are all in great
demand. A Japanese group, for instance, may wish to see how
Swiss cheese is produced, or how the Austrians make their
apple strudel. But despite the clichés, the cosiness of a chalet, the
splendour of the glaciers and a train ride up to the Jungfraujoch
remain the high points of most visitors’ European trips – the last of
these in the truest sense of the term!
77B U S I N E S S A C T I V I T I E S
Responsibility for ensuring that the travel packages assembled
are sold as effectively as possible lies with Retailing. Some 123 sales
outlets perform this task in Switzerland. A further 41 outlets are
provided in Austria, and 18 in France. Our subsidiaries also sell
their products via outside travel agents and alternative distribution
channels such as the Internet, call centres and digital TV.
Business Travel
The prime focus of our Business Travel operations, which trade
under the BTI brand, is on providing products and services that are
geared to the needs of our various business customers, from small
and mid-sized companies to bigger national and international cor-
porations.
Our business travel specialists are far more than travel agents,
though. Managing travel budgets – not just to keep costs low but
to reduce them over the longer term – is a key requirement here.
“Travel and entertainment” are one of the bigger cost items in
a company’s accounts. Their prominence is growing, too, with the
globalisation of the world economy and the greater need for
international travel and intracompany communications that this
development entails.
This is why effecting a tangible and sustainable reduction in
their clients’ travel costs is one of the prime duties of Kuoni’s
business travel specialists. It is a task that is tackled at three distinct
levels: direct travel costs (where efforts are made to enhance the pur-
chasing process), structural costs (whether to run an in-house travel
unit or outsource these activities) and process costs
(optimising the company’s
own processes and proce-
dures). These activities
also make extensive
use of the Internet
and of system-based
solutions such as online
booking applications.
76
The average years of ser-
vice for staff in our Swiss
home market – eight – is a fur-
ther source of satisfaction.
The relative longevity of
employment can be attributed
to a flexible personnel policy,
attractive career and develop-
ment possibilities within the
Group and an active training
philosophy on the one hand,
and to the “young” working
environment and open ma-
nagement culture on the other.
The Group’s openness and fle-
xibility are also reflected in its
progressive working arrange-
ments, which include job sha-
ring and freelance models.
And with activities in 25 countries in almost every corner of the
Earth, Kuoni can offer its staff attractive international deploy-
ments, too.
Our personnel are crucial to our business success, as the follo-
wing three portraits reveal. Each of them reflects the sense of co-
responsibility, the willingness to change and the love of serving our
customers as best we can that are both the hallmarks of our present
product and the key to our further success.
Job portraits:Daniela Stettler, Teamleader on Majorca
The Kuoni Group has more than 250 tour guides working for it all
around the world. Daniela Stettler heads Kuoni Switzerland’s ten-
member team on Majorca. Having spent the winter “at home”, the
team leader heads back to the island in March to make her first
preparations for the coming summer season: familiarising herself
79S T A F F
Motivation and innovation
Kuoni is convinced that a positive corporate culture can only be
created and maintained if it is based on strong management
principles which are familiar to all personnel. It is a fundamental
tenet that is all the more essential in view of the overall struc-
ture of the global Kuoni Group: centrally organised, but with a
strongly federalist management approach.
The Kuoni Group employed 7,946 personnel around the world at
the end of 2000, 21.3% more than the previous year. The increase
is due to the Group’s continuing organic growth and the expansion
of its activities in India, Sweden
and the USA.
The above-average propor-
tion of employees in the 20-to-
35 age group is typical of the
tourist sector worldwide, and
around two thirds of the Kuoni
Group’s personnel fall into
this age category. Two thirds of
Kuoni employees are female,
too. Over the past few years, the Group has substantially increa-
sed the percentage of women in its middle-manager ranks:
around half the Group’s management posi-
tions around the world are now occupied
by women employees. Group Manage-
ment also saw its first female
appointee – Sue Biggs of
the United Kingdom –
at the beginning of 2001.
78
Management principles
of the Kuoni Group
1. We lead and manage by defining
clear objectives and by measuring
performance.
2. We delegate and define responsibili-
ties and competences.
3. We encourage entrepreneurship,
support innovative action and the
ensuing entrepreneurial risk.
4. We take decisions and act on them
swiftly and decisively.
5. Our communication is open and
frank – difficult topics included.
6. We live what we say, we are credible.
7. We face criticism and deal with con-
flict constructively.
8. Our remuneration principles are fair
and we reward outstanding perfor-
mance.
“ We motivate our
staff by encouraging
entrepreneurship
and innovation at
all levels.”
“I see my work as more than just a job”, Daniela concludes.
“I see it as a school for life!”
Heidrun Schaffner, Manager of a Business Travel Center
Having worked in the travel business for more than 30 years,
Heidrun Schaffner has a pretty good idea of what her customers
want. And she has realised for some time that business travel clients
have very special needs.
Which may explain why the
51-year-old team leader at
Kuoni’s Business Travel Cen-
ter in Meckenbeuren, Ger-
many, and her 14 colleagues
generate business travel turn-
over of some DEM 24 mil-
lion a year.
A typical day for Heid-
run will begin with current bookings: making and confirming reser-
vations, issuing tickets and the like. “But the telephone is rarely
quiet for long”, she adds. “The first customers tend to call when
we’re just opening up.”
Most business travel customers come with clear and concrete
instructions. They know where they are going, they know
how long they want to stay, and they have a clear idea of what their
hotel should be like. The main assistance they need is in finding
out about the flights, reserving their hotel and rental car, and – of
course – any advice the agent can offer on the pricing front.
Customer profiles are a valuable worktool for Kuoni’s business
travel teams. They can provide a host of information on the custo-
mer’s tastes and habits, and substantially reduce the time spent
making the necessary arrangements. In most cases, the booking will
be entered in the reservation system along with the request, con-
firmed by fax or e-mail, and passed on to the ticketing agent, who
will issue the ticket and mail or courier it to the client.
81S T A F F
with the destination, checking the excursion programmes, intro-
ducing the new tour guides to their duties and planning their work
rosters.
The overriding aim of all these activities, of course, is to pro-
vide Kuoni’s guests with the best possible care and assistance. To do
so, the guides will tell their visitors as much as they can about the
country and its people, suggest excursions, provide advice on car
and cycle rentals, and offer restaurant and shopping tips. Daniela
coaches her team in all these areas. And she’ll be on hand to help
out if any difficulties arise: a trip to hospital, for instance, if a guest
has an accident or is suddenly taken ill.
During the season, Daniela and her team will go to the airport
several times a week to say goodbye to departing guests and wel-
come the new arrivals. Needless to say, Daniela’s job also entails
maintaining good relations with the local travel agency, the ho-
teliers and other service providers. And – though they pose no pro-
blem for this former businesswoman – administrative tasks such
as invoicing, compiling statistics and organising schedules and ex-
penses are all part of her work, too.
Every day is a new challenge for Daniela – as aspect of her
activities that she clearly enjoys. “What I like about the job is that
it’s a good mix of management duties and frontline work”, she
explains. “I can make use of my experience and my improvisational
skills, too. And I’ve really got to know the country and its people
through my work.”
At the end of each season, Daniela
strikes camp and heads off for a new
destination. It’s a rhythm and a lifestyle
that call for a lot of flexibility, strong
self-motivation and an extrovert streak.
80
with London, Paris, the Netherlands and Italy, all within 12 to
17 days.
“Our Indian guests are very discerning”, Stephanie explains.
“After all, many of them will have been saving up for this trip
all their lives. So they expect perfect service and the smoothest of
organisations.” Her Incoming team also arrange a special service
for their Indian visitors: most of the
groups are accompanied by a travel-
ling kitchen to prepare their largely
vegetarian meals.
Very few hotels in Europe are
equipped to handle groups of this
size. One of the easiest destinations
in this regard is Engelberg in Central Switzerland: Stephanie and
her team have enjoyed an excellent collaboration for the last
two years with the resort Hotel Terrace, which specialises in Indian
guests.
Needless to say, given the number of customers they look after,
Stephanie and her team have their fair share of organisational
problems in the course of the year. Like the group in Amsterdam
who were so taken by the shopping possibilities that they missed
their ferry. In situations like these, it’s improvisation and nego-
tiating skills that are most urgently required. “But that’s just what
makes my work so varied”, Stephanie explains. “Still”, she adds,
“with all the technology we can call on today, in our reservations
and our accounting, it’s certainly less hectic than it was a few
years ago!”
83S T A F F
“I think what’s unique about the business travel sector is the
contact you have with your customers”, Heidrun says. BTI
Meckenbeuren’s business travel customers contact the office almost
every week, and many of them have known Heidrun for years.
Still, today’s business travel sector is marked by a tough pricing
war among both the travel operators and the airlines. Customers
have become more cost-conscious, too; and they know their way
around the travel sector better than they did a few years ago.
“But that’s just what makes our job so challenging”, Heidrun ex-
plains. “If we can be creative and come up with our own ideas
and suggestions, we can really show our customer how to make
their business travel management even better than before!”
Stephanie Dawson,Specialist at Incoming Services Europe
For Kuoni India and its European service providers, Zurich’s
Incoming Services have a key interface function. Stephanie Dawson,
a 31-year-old Malaysian, has been working with Incoming Services
for eight years now, and currently organises European tours
for groups of Indian visitors with the rest of her four-person team.
For Stephanie and her colleagues, preparations for the travel
season are in full flow by early March. They need to be: before the
first Indian visitors arrive in Europe two
months later, there are itineraries
to finalise, hotels and services to
book, prices to fix and –
together with Kuoni India –
a brochure to produce.
The main travel season for
this customer segment
is from the end of April to
October; and every year
will see up to 350 groups of 50 per-
sons travel to Europe to visit
Switzerland (and its peaks) along
82
“Our guests do
expect a
perfect service.“
E N V I R O N M E N T A L C A R E
Committed to eco-quality
Ecological concern is a Kuoni concern. The Kuoni Group practises
active environmental management at a national and an inter-
national level. We are convinced that unspoilt landscapes, clean
water and good-quality air are crucial to the long-term sustain-
ability of the tourist sector.
“We support environmentally friendly ideas and solutions” – our
commitment to ecological care is enshrined in our Group Mission
Statement. Yet we also believe that global challenges call for global
solutions. That is why we attach great importance to our inter-
national collaborations on the ecological front: Kuoni is a member
of Green Globe 21 and plays an active role in the organisation,
with Board Chairman Daniel Affolter on its directors’ board as well
as Geoffrey H. Lipman, member
of the Board of Directors and CEO
of Green Globe 21.
Founded in 1994 by the World
Travel & Tourism Council, Green
Globe 21 is dedicated to environ-
mental management and awareness.
Based in Bournemouth (UK),
the organisation was formed in the
light of Agenda 21 of the 1992 Rio Earth Summit, and promotes
sustainable travel and tourism around the world. It does so by wor-
king with specialists in environmental affairs and the tourist
sector to devise global norms and certifications that enable consu-
mers to be as eco-minded as possible in their travel and vacation
arrangements.
2000 saw Kuoni Travel Holding Ltd. hold its first CO2-neutral
Shareholders’ Meeting. This was achieved by planting trees in Swit-
zerland and on Sumatra to offset the total carbon dioxide emissions
85
“ We support
environmentally
friendly ideas
and solutions.”
and extends to close collaboration with
local hotels. To provide incentives for
ecological operations, and in view of the
growing ranks of customers who in-
clude environmental considerations in
their choice of travel and vacation
product, we have also introduced our
“Green Planet Awards” to our home
Swiss market. Some 23 Mediterranean
hotels with sound ecological credentials have
already earned the distinction and been designated as such in the
relevant documentation. The award will now be extended to hotels
at our long-haul destinations.
Business ecology focuses on optimising materials cycles in our
Swiss organisation. In line with our commitment to a responsible
use of natural resources, our Zurich head office was recently refur-
bished – at considerable expense – on sound ecological principles.
The work, which included the installation of low-energy lighting,
less air-conditioning, water regulators and insulated glass for
offices and sales areas, the adoption of a new waste concept and
a switch to ecofriendly office materials, was completed by the
end of 2000.
Kuoni also adopted “green” technology for the latest addition
to its Edelweiss Air fleet. With its state-of-the-art powerplants, the
long-haul Airbus A330-220, which entered service in November
2000, burns 20 per cent less fuel, produces fewer pollutants and
generates less noise than older-generation aircraft.
87E N V I R O N M E N T A L C A R E
caused by attendees’ travel to
and from the meeting and the
CO2 generated by electricity,
heating and water consumed at
the event.
Further proof of Kuoni’s
eco-commitment was offered by
the creation of a new Environ-
mental Affairs post for Switzer-
land in May 2000. The full-
time Environment Officer is
currently developing a pro-
gramme for the company’s
Swiss-based operations – a
“business ecology” component
for internal activities and a
“product ecology” component
for actions aimed at outside
markets.
Product ecology begins
with the planning of new travel
products, embraces staff trai-
ning and customer information
86
The Green Planet
Award
The Green Planet Award is the latest
seal of eco-approval from Kuoni Swit-
zerland. The award is bestowed on
hotels that meet clearly-defined
ecological criteria. The first distinc-
tions were awarded on the strength
of a detailed questionnaire that was
sent to hotels in summer 2000 and
covered areas such as:
• their water, energy and waste
management activities
• raising environmental awareness
among guests
• the training their personnel receive
on ecological issues and
• their future development plans.
Of the 335 resort hotels that received
the questionnaire, 128 completed
and returned it. Of these, 23 earned
their Green Planet Award, and were
presented as such in our 2001 beach
holiday catalogue.
S O C I A L C O M M I T M E N T
A partnership for the future
In its collaboration with SOS Children’s Village, Kuoni supports a
partner which has been working for over 50 years to provide
abandoned or needy children with a mother, a home and an edu-
cation – like the 40 youngsters from Tibet who have found a new
home at the Kuoni House in Gopalpur in Northern India.
When the Dalai Lama fled to India in 1959, tens of thousands of
Tibetans followed. Today, some 130,000 of his people live in exile,
most of them on the Indian subcontinent. Many inhabitants of
Tibet today still send their children to India, hoping that they can
better maintain their culture and religion in their new adopted
country. After an arduous trek
through the Himalayas, these
youngsters often find refuge in
one of the eight Tibetan SOS
children’s villages just across
the Indian border.
One of these is located
among the green hills of
Gopalpur in the state of
Himachal Pradesh, close to Dharamsala, where the Dalai Lama
resides. The village offers a new home and an education to some
900 youngsters, and is financed by Swiss-based donors who in-
clude the Kuoni Group.
89
“ We strive to put
something back
into the destinations
we offer.”
91S O C I A L C O M M I T M E N T
28-year-old
Chonkyi Lhamo is
mother to the 40 chil-
dren aged between
five and 17 who live in
the village’s Kuoni
House. The 30 houses
in the Gopalpur chil-
dren’s village have all
been built to the same
basic design. The
accommodation is modest, but offers all the essentials required.
The first place the visitor comes to on entering the house is the
communal area, which has a small altar devoted to the Dalai Lama
along with a few wooden
benches. The house also
boasts a kitchen, a wash-
room with five toilets, and
a boys’ and a girls’ dormi-
tory. Each of the older chil-
dren shares a bed with one
of their younger “siblings”.
The children are taught
English alongside the Tibe-
tan language from kinder-
garten on. Hindi is taken up
later, too. It all seems to offer a solid and sensible foundation:
12-year-old Tenzin Dikyi, whom we meet in the village, wants to
be a doctor when she grows up.
90
Our involvement with SOS Children’s Village
The peoples, landscapes and cultures of the
countries of the world are the raw materials of our
tour operating activities. This is why we strive to
put something back into the destinations we offer.
The Kuoni Group, the Kuoni and Hugentobler Foun-
dation and our national subsidiary companies have
been supporting SOS Children’s Village and their work since 1997. The organisation
is the biggest private children’s charity in the world: with the help of its sponsors
and donors, it has built up a network of more than 400 villages in 131 countries.
Most villages have their own kindergarten, and some have their own school, too.
Local women are specially trained to act as ‘mothers’ in the villages’ various houses,
each of which is home to a “family” of children.
The Kuoni Group’s involvement with SOS Children’s Village has already extended
to major house projects in the Dominican Republic, South Africa and India. And
many employees throughout the Group act as “SOS ambassadors”, organising fund-
raising projects and events.
“Many employees
throughout the Group
act as ‘SOS am-
bassadors‘, organising
fund-raising
projects and events.”
Austria
N-U-R Neckermann Reisen AG Franz Erich Tobisch
Lassallestrasse 7a / Cityplex Managing Director
AT-1020 Vienna
Phone (+43) 1-50 202-400
Fax (+43) 1-50 202-390
e-mail [email protected]
Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl
Modecenterstrasse 16 Managing Director
AT-1030 Vienna
Phone (+43) 1-796 70 72-510
Fax (+43) 1-796 70 72-515
e-mail [email protected]
Restplatzbörse Ges.m.b.H. Paul Kothbauer
Mariahilferstrasse 77 Managing Director
AT-1060 Vienna
Phone (+43) 1-58085
Fax (+43) 1-58085-995
e-mail [email protected]
Caribbean
Discovery Bay Beach Hotel Chetwyn Burnham
Holetown Resident Manager
St. James, Barbados W.I.
Phone (+1) 246-432 13 01
Fax (+1) 246-432 25 53
e-mail [email protected]
Hawksbill Beach Hotel Peter Ramrattan
Five Islands, P.O. Box 108 Area Manager
St. John’s, Antigua W.I.
Phone (+1) 268-462 03 01
Fax (+1) 268-462 15 15
e-mail [email protected]
93A D D R E S S E S
Kuoni Travel Holding Ltd.
Kuoni Travel Holding Ltd.
Neue Hard 7
CH-8010 Zurich
Phone (+41) 1-277 44 44
Fax (+41) 1-271 52 82
e-mail [email protected]
Countries are listed alphabetically as are the companies within each country.
Asia
P&O Travel Ltd. Richard Willis
New T&T Centre, Unit 1307–09 Managing Director
13th floor
Harbour City
TST Kowloon, Hong Kong
Phone (+852) 2956 6888
Fax (+852) 2956 6789
e-mail [email protected]
P&O Travel Pte. Ltd. K.Y. Chung
No. 200 Cantonment Road Managing Director
#04–05 Southpoint
Singapore 089763
Phone (+65) 224 7730
Fax (+65) 222 7915
e-mail [email protected]
Austria
Allround Travel Michael Manak
International GmbH Managing Director
Reisnerstrasse 18
AT-1030 Vienna
Phone (+43) 1-712 24 666
Fax (+43) 1-713 68 38
e-mail [email protected]
92
Hungary
Kuoni Utazási Iroda Kft. András Rónai
Báthory utca 19 Managing Director
HU-1054 Budapest
Phone (+36) 1-269 45 84
Fax (+36) 1-353 43 50
e-mail [email protected]
N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi
Dayka Gabor utca 3 Managing Director
HU-1118 Budapest
Phone (+36) 1-319 69 91
Fax (+36) 1-319 66 96
e-mail [email protected]
India
Kuoni Travel (India) Ltd. Ranjit Malkani
Vaswani Mansion Managing Director
120 Dinshaw Vachha Road
Opp. K.C. College
Churchgate, Mumbai - 400 020
Phone (+91) 22 2839813/14/17
Fax (+91) 22 2855840
e-mail [email protected]
SITA World Travel / Ranjit Malkani
Kuoni Travel (India) Ltd. Managing Director
4 Malcha Marg Shopping Centre
Diplomatic Enclave
New Delhi – 110 021
Phone (+91) 11 6111122
Fax (+91) 11 6870123 or 11 6113572
e-mail [email protected]
Italy
Kuoni Gastaldi Tours S.p.A. Ermanno Fici
Mura di Santa Chiara 1 Managing Director
IT-16128 Genoa
Phone (+39) 010-5968 1
Fax (+39) 010-5968 818
e-mail [email protected]
95A D D R E S S E S
Denmark
Alletiders Rejser A/S Peter Kisbye
Kongevejen 155 Managing Director
DK-2830 Virum
Phone (+45) 45 95 51 26
Fax (+45) 45 95 52 81
e-mail [email protected]
France
Voyages Kuoni SA Jean-Paul Veslot
95, rue d’Amsterdam Managing Director
FR-75008 Paris
Phone (+33) 1-42 85 71 22
Fax (+33) 1-42 80 41 85
e-mail [email protected]
Germany
BTI Euro Lloyd GmbH & Co. KG Reto Bacher
Neumarkt 35–37 Executiv Vice-President
DE-50667 Cologne Business Travel
Phone (+49) 221-20 28 0
Fax (+49) 221-20 28 178
e-mail [email protected]
Greece
Hellenic Tours S.A. George Georgopoulos
23–25 Ermou Street Managing Director
GR-10563 Athens
Phone (+30) 1-3359 700
and 3243 715
Fax (+30) 1-3234 947
and 3227 494
e-mail [email protected]
94
Switzerland
BTI Central Europe and Reto Bacher
Kuoni Geschäftsreisen AG Executive Vice-President
Postfach 252 Business Travel
CH-8064 Zurich
Phone (+41) 1-736 58 58
Fax (+41) 1-736 58 01
e-mail [email protected]
Edelweiss Air AG Niklaus Grob
Operations Center Managing Director
Postfach
CH-8058 Zurich-Airport
Phone (+41) 1-816 50 60
Fax (+41) 1-816 50 61
e-mail [email protected]
Kuoni Reisen AG Thomas Stirnimann
Neue Hard 7 Executive Vice- President
CH-8010 Zurich Charter Activities
Phone (+41) 1-277 44 44
Fax (+41) 1-271 52 82
e-mail [email protected]
Kuoni Reisen AG Ibrahim Atallah
Incoming Services Senior Vice-President
Überlandstrasse 360 Incoming
CH-8051 Zurich
Phone (+41) 1-325 21 11
Fax (+41) 1-321 19 09
e-mail [email protected]
Manta Reisen AG Amy Stierli
Treichlerstrasse 10 Managing Director
CH-8032 Zurich
Phone (+41) 1-268 24 24
Fax (+41) 1-268 24 74
e-mail [email protected]
97A D D R E S S E S
Kenya
Private Safaris East Africa Ltd. Alexander Spiro
Twinstar Bldg Managing Director
Mombasa Road
P.O. Box 45205
Nairobi
Phone (+254) 2 53 06 01
Fax (+254) 2 53 38 54
e-mail [email protected]
Netherlands
Special Traffic Norbert Good
(Kuoni Travel Nederland B.V.) Managing Director
Entrada 211–214
P.O. Box 3370
NL-1001 AD Amsterdam
Phone (+31) 20-398 92 92
Fax (+31) 20-398 92 02
e-mail [email protected]
Spain
Viajes Kuoni S.A. Daniel Ponzo
Paseo Infanta Isabel, 17 Managing Director
ES-28014 Madrid
Phone (+34) 91-538 27 00
Fax (+34) 91-538 27 27
e-mail [email protected]
Sweden
Apollo Resor AB Peter Wetterstrand
Sveavägen 155, 9tr Managing Director
SE-11346 Stockholm
Phone (+46) 8-673 84 00
Fax (+46) 8-673 85 19
e-mail [email protected]
96
United Kingdom
Kuoni Travel Ltd. Peter Diethelm
Kuoni House Executive Vice-President
GB-Dorking, Surrey RH5 4AZ Specialists United Kingdom
& North AmericaPhone (+44) 1306 74 08 88
Sita LONBTSRSue Biggs
Fax (+44) 1306 74 44 88Managing Director
e-mail [email protected]
Travel Promotions Ltd. John Dawson
Voyages Jules Verne General Manager
21, Dorset Square
GB-London, NW1 6QG David Pattison
Manager Products Phone (+44) 20 7 616 10 00
and MarketingFax (+44) 20 7 723 86 29
e-mail [email protected]
USA
Intrav, Inc. Ian Coghlan
7711 Bonhomme Avenue Managing Director, CEO
St. Louis, MO 63105
Phone (+1) 314 727-0500
Fax (+1) 314 727-2533
e-mail [email protected]
T PRO Inc. Kerrin Behrend
1500 Broadway, 32nd floor Managing Director, CEO
New York, NY 10036
Phone (+1) 212 852-8776
Fax (+1) 212 302-8785
e-mail [email protected]
99A D D R E S S E S
Switzerland
Privat Safaris Reisebüro AG Urs Bellmont
Wiesenstrasse 10, Postfach Managing Director
CH-8034 Zurich
Phone (+41) 1-386 46 46
Fax (+41) 1-386 46 47
e-mail [email protected]
PRS AG Hans-Jörg Leuzinger
Seestrasse 127 Gianni Moccetti
CH-8700 Küsnacht Managing Directors
Phone (+41) 1-914 25 30
Fax (+41) 1-914 25 35
e-mail [email protected]
Railtour Suisse SA René Keller
Chutzenstrasse 24 Werner Schindler
CH-3000 Berne 17 Managing Directors
Phone (+41) 31-378 01 11
Fax (+41) 31-378 02 22
e-mail [email protected]
Reisebüro Popularis Rolf Bühler
Löwenstrasse 66 Managing Director
CH-8021 Zurich
Phone (+41) 1-215 10 50
Fax (+41) 1-215 10 40
e-mail [email protected]
Rotunda Tours AG Cornel Merki
Wiesenstrasse 10, Postfach Managing Director
CH-8034 Zurich
Phone (+41) 1-386 46 66
Fax (+41) 1-386 46 88
e-mail [email protected]
98
Dane ToursA Danish scheduled air travel specia-list acquired by the Kuoni Group on1 January, 2000.
DistributionAn alternative industry term for re-tailing (→).
Edelweiss AirA Swiss-based charter airlinesubsidiary of the KuoniGroup. Its aircraftfleet, which is opera-ted for Kuoni Swit-zerland, consists ofthree AirbusA320-200s thatwere joined inautumn 2000 bya brand-new Air-bus A330-200 forlong-haul flights.
Hellenic Island ServicesKuoni’s handling agent (→ Agent) onCrete, Rhodes and Mykonos, and ajoint venture between Kuoni and Hel-lenic Tours.
Hellenic Tours S.A.Kuoni’s Athens-based subsidiary,which is active in the Incoming (→)and Business Travel market.
Helvetic ToursA travel agency chain and Kuoni Swit-zerland’s budget holiday brand.
IBUAbbreviation for the IndependentBusiness Units of Kuoni UK, each of which is active in its own nichemarket.
ImplantA travel agency which is managed by abusiness travel operator at the premisesof a key corporate customer.
IncomingThe Strategic Business Unit (→ SBU)providing services at the holiday desti-nation. Incoming consists of the headoffice in Zurich, sales outlets overseas,
local offices in Europe andKuoni subsidiaries Hellenic
Tours (→), HellenicIsland Services (→),
Private Safaris(East Africa) (→)
and T PRO (→).
Inter Holland Travel B.V.A company active in
the incoming sector inwhich the Kuoni Group has
held a 70-per-cent equitystake since January 2000.
Intrav, Inc.A US subsidiary acquired in 1999
which specialises in cruises, luxury safa-ris and exclusive holidays by private jet.
Kisbye RejserA group of four Danish travel agen-cies acquired by the Kuoni Group onJanuary 1, 2000.
Kuoni and Hugentobler FoundationThe biggest shareholder in KuoniTravel Holding Ltd. by voting rights(with 25 per cent of voting rights and 6.25 per cent of share capital).
Kuoni Gastaldi Tours S.p.A.A joint venture domiciled in Genoa,Italy, created by the merger in 1998 ofGastaldi Tours and Kuoni Viaggi.Kuoni Gastaldi Tours is Italy’s biggestlong-haul travel company.
101K U O N I G L O S S A R Y
AgentAn independent travel agency that sellsKuoni products. The term is also usedfor companies which act as handlingagents at Kuoni destinations.
Alletiders Rejser A/SA Danish-based Kuoni Group subsi-diary acquired in autumn 1998 whichis one of the country’s biggest touroperators, specialising in leisure travelto the Mediterranean and overseas.
Allround Travel International GmbH An Austrian Kuoni Group subsidiarywhich specialises in Asian travel ar-rangements.
Alternative distributionThe direct distribution of travel pro-ducts by the operator, via channelssuch as the Internet, interactive TV orcall centres.
Apollo Resor ABA Swedish tour operator in the mid-price-range segment which is alsoactive in Denmark and Norway. Ope-rates its own charter airline, Novair,and makes extensive use of the Internetin its distribution activities. A fully-owned Kuoni Group subsidiary sinceJanuary 2001.
Business Travel International (BTI)A global alliance of business travelcompanies which has an annual turn-over of some USD 20 billion. BTI has 78 national partners in 80 countries,employs around 30,000 personnel,operates over 3000 offices and is re-presented exclusively in each countryby a leading business travel specialist. Kuoni represents BTI in Switzerland,Germany, Austria, Hungary and Liech-tenstein.
CharterThe assumption of all the capacity onan aircraft (full charter) or part of the capacity available (partial charter)at one’s own commercial risk. TheKuoni Group owns two charter air-lines: Edelweiss Air (→), which is basedin Switzerland, and Novair, whichoperates from Scandinavia.
Clipper Cruise LineA subsidiary of Intrav (→) specialisingin luxury cruises.
CommercialAn industry term for business travel (→).
Cosmos GesmbHA long-established Vienna-based tra-vel agency which was acquired by theKuoni Group in April 1999.
100
A traveller’s world from A–Z
SBUStrategic Business Unit: the units intowhich the Kuoni Group is organisedfor financial reporting purposes.
Service providerAny provider of a servicefor travellers such as an air-line, a hotel or a restaurant.Often referred to as“suppliers” by touroperators.
SITA World TravelA Delhi-based KuoniGroup subsidiary acqui-red in April 2000. Mergedwith Kuoni Travel India (→)in autumn 2000 to create India’s lea-ding company in the leisure travel,business travel and incoming fields.
SOS Children’s VillageKuoni has been a partner of SOSChildren’s Village, the world’s biggestprivate children’s charity, since 1997.The organisation runs “villages” allover the world providing a home andan education for children in need.
SOTCA brand used by Kuoni Travel India(→) for leisure travel abroad.
Special Traffic A Dutch-based subsidiary of the KuoniGroup which is active in the long-haultravel market.
Sport AbroadAn IBU (→) of Kuoni UK that organi-ses travel to sports events.
The Travel Collection A brand of Kuoni UK specialising indirect sales.
Tour operatingSelecting and buying-in products andservices and bundling these intopackage holidays (→) or tailored tra-vel arrangements.
T PROA US-based Kuoni Group
subsidiary which is num-ber three in the US inco-
ming sector. The acquisi-tion of T PRO in July2000 gained Kuoni a keyfoothold in the growingUS market.
TV Travel ShopA UK (and now also Ger-
man) TV station selling air tickets,package holidays and supplementaryproducts such as travel insurance and car rentals 24 hours a day. Kuoniholds a 12.5-per-cent equity stake inthe UK-based parent company.
Vertical integrationThe expansion of business activitiesthroughout the value-adding chainwithin the same industry sector, e.g. atour operator acquiring its own ser-vice providers (→) such as hotels, air-lines or car rental companies.
Voyages Jules VerneA UK-based tour operator acquired by Kuoni in 1998 which offers qualitytours and beach holidays via directsales channels.
103K U O N I G L O S S A R Y
Kuoni Travel Holding Ltd.The holding company for the KuoniGroup.
Kuoni Travel IndiaAn Indian tour operator which theKuoni Group acquired in 1996. Indoing so, Kuoni, with its SOTC (→)brand, became India’s biggest operatorof package holidays abroad. The Kuoni Group also acquired India’sSITA World Travel (→) in April 2000.
Manta Reisen AGA 90-per-cent-owned Swiss-based sub-sidiary of the Kuoni Group which spe-cialises in travels to the Maldives anddiving holidays.
N-U-R Neckermann Reisen AGNumber two in the Austrian tour ope-rator market, and 51-per-cent-ownedby the Kuoni Group. The remaining 49 per cent is held by N-U-R TouristicGmbH, Frankfurt. Neckermann Utazás Kft., Budapest (Hungary) is a subsi-
diary of N-U-R Neckermann ReisenAG, which is also active in Sloveniaand Slovakia.
Package holidayA collection of holiday products andservices (flight, hotel, bus transfers,local representative etc.) bundled andoffered at a predetermined all-in price.
P&O Travel Ltd. AsiaA Hong Kong-based 50:50 joint ven-ture established in 1997 between theUK-based Peninsular & Oriental SteamNavigation Company (P&O Ltd.) andthe Kuoni Group.
Private Safaris (East Africa)A Nairobi-based Kuoni Group subsi-diary servicing visitors from Europeand overseas in Kenya.
Privat Safaris Reisebüro AGA Swiss-based Kuoni Group subsidiaryspecialising in East Africa.
PRS AGA Swiss-based Kuoni Group subsidiaryactive in the retailing (→) sector.
Railtour Suisse S.A.A Swiss rail travel operator, 87-per-cent-owned by the Kuoni Group since1994.
RestplatzbörseA Kuoni Group subsidiary that hashad sizable success in the Austrianmarket selling last-minute seat ca-pacity.
RetailingThe process of advising on and sellingleisure and business travel.
102