LONG-haul operator Kuoni is planning to significantly increase bookings via digital television and the Internet following its deal with TVTravel Shop.
Last week, Travel Weekly exclusively revealed that Kuoni would take a 12.5% stake in the channel for around £7m. The two companies eventually settled on a purchase price of £6.6m.
Kuoni UKchairman Peter Diethelm said the potential to increase Internet bookings in Europe was enormous as currently less than 2% of holidays were booked in this way.
Later this year, the operator will be offering travel agents the facility to make bookings via the Internet.
Kuoni and TVTravel Shop are also due to launch an interactive product in the UK this summer and pursue expansion throughout Germany and Scandinavia.
TVTravel Shop turns over several million pounds of business per year for Kuoni but Diethelm admitted he was among those initially sceptical about the channel, which was launched in April 1998.
“When Harry (joint founder Harry Goodman) first talked to me 15 months ago, I thought it was a bit of a joke and really just went along with it for his sake,” he said.
“But the growth of the product has been amazing.”
TV Travel Shop turned over £72m in its first year of operation and is on target to triple that in year two.
The rapid sale of digital set-top boxes is increasing the channel’s penetration into UKhomes and its average booking per passenger is around £600.
Despite Kuoni’s plans to increase bookings through new areas of distribution, Diethelm said he was convinced that traditional high street travel agents had a strong future.
“People can access information from the comfort of their own front room and some of them will book in this way,” he said.
“But many want advice and information from an expert. The good travel agent has absolutely nothing to worry about.”
n Read Harry Goodman in Columnists on page 13