DER Touristik has praised the “outstanding position” of the group’s UK business while confirming it will cut its German workforce by 10% following a disappointing 2018 for its tour operators in central Europe.
Sören Hartmann, DER Touristik group chief executive, told Travel Weekly: “We are very pleased about the development of DER Touristik UK under [chief executive] Derek Jones. We have an outstanding position in the premium tour segment in the UK.”
DER Touristik UK includes Kuoni UK, Kirker, Carrier, CV Villas, Jules Verne and Journey Latin America, acquired in November.
Hartmann said: “The UK combines top management with top performance. It is a good example of how the group is an umbrella for independent entrepreneurship.”
However, he said: “In Germany, we fell short of our expectations with [our] tour operators.”
Hartmann declined to give figures but said: “We can report outstanding performance with our travel agencies [in Germany] in 2018.”
DER Touristik is the number-three travel group in Germany behind TUI and Thomas Cook, with six tour operator brands and about 2,000 travel agencies. It is part of the German co-operative retail group REWE.
The German business forms part of the DER Tourist Central Europe division which includes Austria and Switzerland and accounts for two-thirds of group revenues.
Hartmann suggested “three primary reasons” for the group not doing better in its main market.
He blamed: “The rapid shift from the western to eastern Mediterranean, which led to considerable pressure on margins for tours in Spain, major problems following the grounding of Air Berlin [in October 2017] and Small Planet [in Germany this October], and the absence of last-minute business due to the extraordinary summer weather.”
But he added: “We are very pleased with the growth in our international markets, particularly with Switzerland and Eastern Europe.”
DER Touristik has increased capacity for 2019 despite its performance in Germany.
Hartmann confirmed: “We added capacity in North Africa and Turkey based on demand.”
He forecast 2019 “will be a late booking year and another plus year in the cruise segment” and said: “Turkey will be a big winner.”
The group plans to expand its cruise operation. Hartmann said: “DER Touristik is already one of the largest European agents for cruises. We want to develop this activity.”
Former Thomas Cook UK head Ingo Burmester will join DER Touristik in May to head the group’s Central Europe business.