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Kuoni confirms plans for expansion

KUONI managing director Sue Biggs would not be drawn on the rumoured buyout of Kirker but said the long-haul specialist is on the acquisition trail.


The operator is planning future expansion through organic growth of existing programmes and also by buying other companies, with an expanded short-haul operation planned.


Denying Kuoni’s Achilles’ heel could be its reliance on the trade as dynamic packaging increases, Biggs said the operator will continue to back the trade. “Agents have been our best ambassadors for decades. We remain fully committed to the trade. I hope that trust in agents will be rewarded, but if the business does go down because agents are selling their own product or something else, we would go direct.”


Kuoni will continue to pursue more online sales, targeting growth from 8% to 15%.


Biggs rejected the idea online sales are only suited to low-value bookings, adding that last week, the operator took a booking to the Maldives for seven people this Christmas online, costing £ 46,000.


This year the operator added Italy to its growing short-haul programme but Biggs said the plan is not to go down the mass-market route.


“If we cannot add our quality and service to a product, if it is so price sensitive and competitive, you will not see us in that market,” she said.


Biggs said Bali, Egypt and Sri Lanka are still suffering following the bombs and the tsunami, while the US is also “having a difficult time”, with many Florida holidaymakers switching to Dubai.


Meanwhile, Africa and China are big growth areas.


Kuoni, which is Swiss owned and had a £300 million turnover in the UK last year making £49 million profit, celebrates its 100th birthday this year.

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