Kuoni profits fall as customers shun beach packages – 23 Aug 2007

Kuoni has seen profits fall by 57% in the first half of this year as consumers buy fewer all-inclusive beach holidays.

However, the UK unit reported a 12.9% increase in turnover on the previous year driven by its existing and newly acquired specialist operators. Its classic tour operating division suffered declines as more consumers turn to the Internet to arrange their own trips abroad.

Overall, turnover increased 15.6% thanks to the company’s growth strategy. Kuoni has purchased more than 10 companies in the past two years.

It continued its expansion in the luxury market with the acquisition of villa and ski chalet specialist CV Travel and Russian tour operator UTE Megapolus in July.

The group said it was “confident” about the outlook for 2007 as a whole, but a precise forecast would be difficult to make due to the volatility of the market.

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