Kuoni’s UK tour operating business is being put up for sale as the Swiss travel group looks to exit the sector.
All of the group’s tour operating interests in Switzerland, Benelux, Hong Kong/China, India and Scandinavia are also to be offloaded.
This affects about 3,800 staff in total and business that generated turnover of CHF 2.2 billion last year.
“Kuoni firmly believes that the outbound business can be better developed under new ownership, potentially leveraging scale or specific local strengths,” the company revealed this morning.
“Kuoni will seek assurance about the continuation of the existing business locations and the continued employment of staff.”
The company stressed that the exit from the tour operating business will not have any impact on customers or their current and future bookings.
“All units will continue to deliver their expert services to the accustomed standards of quality and reliability,” Kuoni said, adding that it intends to find new owners in the course of 2015.
Kuoni operates under a range of premium and specialist brands and ranks among the top five tour operators in Europe and has a well-established presence in Hong Kong and India.
“In spite of this position, Kuoni’s outbound business faces increasing challenges from changing market conditions,” the group said.
“In consideration of the fundamental changes in the industry and the unique position of Kuoni Group as a leading service provider to the global travel industry, the board of directors and group executive board have decided to focus the company’s resources on those core activities in which Kuoni already enjoys a leading market position with attractive prospects.
“Kuoni has therefore decided to exit the tour operating businesses.”
The group is to build on “robust financial foundations,” which will support a growth strategy in the emerging travel markets of Asia, the Middle East and Africa.
“Proceeds from the sale of the tour operating businesses will mainly be invested to further develop the group’s core business and strengthen its leading global market positions,” the company said.
Kuoni Group employed approximately 8,000 people and generated revenues of CHF 3.4 billion in 2014.
Mid-term targets for the new set-up will be issued together with the full year results announcement on March 17.