Kuoni Group’s business activities are divided in five distinct main areas: the traditional tour operating business, destination management travel services, specialist travel business, operations in Emerging Markets and the visa services supplied by VFS Global. These areas are structured into three divisions in the new group organisation: Outbound Europe, Global Travel Services and Emerging Markets & Specialists. Kuoni owns hardly any of its own aircraft or hotels and pursues an “asset light” strategy.
The traditional tour operating business includes activities in the following European markets: Scandinavia (including Finland), United Kingdom, Benelux (Netherlands and Belgium), Switzerland, France, Italy and Spain. The product portfolio is divided into package holidays and premium individual holidays, which are often tailored to the individual customer’s requirements. Package holidays are sold in the Nordic and Switzerland markets. Individually arranged holidays are available in the United Kingdom, Benelux, France, Switzerland, Italy and Spain. Distribution channels vary depending on the market and product portfolio, but include Kuoni’s own retail outlets, external travel agencies, the internet, mobile apps, personal mobile travel consultants and call centres. Most products (59%) in the traditional tour operating business are sold through direct customer contact (B2C). As a proportion of the Kuoni Group’s total turnover, traditional tour operating business accounts for 36% (annualised), of which 17% is generated in Scandinavia. These business activities are grouped into the Outbound Europe Division.
Kuoni’s destination management travel services make up a global business sector that is particularly well positioned in Asia, Europe, Middle East and North America. These services are purchased from and sold to business partners (B2B). They include land arrangements such as hotel stays, transfers, excursions and restaurant reservations, all of which can be booked easily, quickly and at attractive prices online. This destination management services business is currently one of the fastest growing areas within the tourism industry. With the acquisition of GTA in May 2011, Kuoni became one of the leading global providers in this business. Destination management travel services also include the group holiday business operated on behalf of holiday companies and travel agencies. Kuoni is one of the world’s largest providers of such holidays, particularly in Asia. All of these business areas are grouped into the Global Travel Services Division. This division contributes 41% (annualised) of Kuoni Group’s total turnover.
The Emerging Markets & Specialists Division includes Kuoni’s tour operator activities in India, China/Hong Kong and Russia. The independent specialist travel brands in the division include the European tour operators (outbound specialists) in Switzerland, the United Kingdom and the Netherlands/Belgium, as well as our dedicated local specialist companies based in the holiday destinations themselves (inbound specialists) in Asia, Australia, Africa, the Middle East, India and North America. These specialist business activities account for 16% of the Kuoni Group’s turnover. The Emerging Markets contribute 4%.
VFS Global is also part of the Emerging Markets & Specialists Division. This business offers visa services and helps governments and embassies to process travellers’ visa applications securely and efficiently. The authorities outsource the administrative tasks involved to VFS Global. Its support work allows the relevant authorities to make decisions about issuing visas more efficently. VFS Global currently contributes 3% of group turnover.