Edward Robertson talks to Kuoni UK managing director Nick Hughes about the tour operator’s recent appointments and plans to nurture trade and consumer relations
Last month Kuoni announced it was doubling its agency sales team and revealed it would open a flagship store in Kensington High Street in London for direct sales. Are you sending out a mixed message about the company’s preferred distribution channel?
It is not a mixed message at all; it is centred around the customers’ needs and wishes.
What I know about the UK customer is that they have different ways of making a booking and we want to meet all of these. What I want to do is make sure we have a fantastic Kuoni experience lined up for every customer out there.
The fact that we have expanded the size of the agency sales team shows how important the trade is, especially since more than 50% of the Kuoni Group’s business comes through the that channel. I’m putting my money where my mouth is.
When does the Kuoni experience start for the customer?
If I put myself in the shoes of a customer then even the first time they see an advert or banner for Kuoni on the web, they’re getting an impression of the company.
From the moment they start to interact with us, they are engaging with the Kuoni brand and I’m looking at that experience. That’s very important for us.
Does that mean that all advertising, whether pushing a direct or trade message, is helpful to the trade?
If we want to work closely with the people in the trade who know how to sell the product, then we allocate more resources to them so they know how to market that product.
However, it is also important Kuoni lets consumers know more about its product. I recently found it surprising that quite a few consumers in the ABC1 social strata didn’t really know much about Kuoni, so we need to do a better job to help consumers understand that.
Even if the customer has heard about us through direct sales advertising, it still means when they walk through the travel agent’s door it is easier to sell to them as they will know about the Kuoni product.
Will bringing on former Thomas Cook Signature sales and marketing director Manuel Mascerenhas as the new sales director help strengthen bonds with the trade?
Manuel is a well-respected person in the trade and will help our connections with travel agents.
When we were looking for a sales director we wanted someone who was a true professional in that area, who knew the trade well, had well-established relationships and knew the merits of working with the trade. Manuel shot to the top of the list in that respect.
Will Mascerenhas be driving the plan to increase business with the multiples?
Yes, the multiples and chains such as the Co-operative Travel Trading Group and Hays Travel are all important. While we have commercial agreements in place with all of them, we’re also discussing how we can increase our business with them.
I’ve been pleasantly surprised by the warmth of the conversations with them as they are clearly getting enquiries about Kuoni. That makes it all the more interesting for them to work with us and we’ve got a well-established brand that customers think of.
The plan is really about defining who’s up for playing with us and putting a lot more energy into that relationship.
Former Thomas Cook Signature managing director Joanna Edmunds joined Kuoni as commercial director earlier this month. What do you expect her to bring to the company?
Joanna is a highly regarded industry professional and represents a significant addition to our UK board. She brings with her strong and relevant experience across all three areas of product, marketing and e-business.
What set Joanna apart was her ability to bring thought, leadership and substantial experience at the higher end of the market. Just as importantly, she is a terrific leader.
What changes do you hope to make to the product offering?
We’re working hard to increase the value of the product that we can sell and that will come through with the product we’re lining up for 2009. We’re now talking about a multi-dimensional approach to the quality. We’re working really hard on it.
We want to build on our strengths and what Kuoni can offer. Don’t forget: we are still by some way the largest seller of long-haul holidays in the UK.
Profile
Age: 43
Education: Chemical engineering at the University of Cape Town before obtaining his Master’s in business administration from Oxford University in 1991.
CV
2007: Joined Kuoni UK as managing director.
2005: Director of service at RAC.
1997: Head of business services at American Express.
1994: Engagement manager at McKinsey.
1993: Worked for South African Breweries, including the role of project manager for Latin America, before moving to London in 1994.