Following its
acquisition of online travel services provider GTA in May 2011
and as the final part of a three-year investment and
cost-reduction programme, the Kuoni Group is updating its
corporate structure with effect from 1 October 2011.
The change sees various business units grouped
organisationally according to their business models, activities,
geographical spread, growth prospects, customer portfolios and
management requirements.
The prime components in the
structure will be the three divisions of:
• Outbound
Europe (European tour operating) • Global Travel Services
(business-to-business FIT & group travel and MICE) • Emerging
Markets & Specialists (tour operating Emerging Markets and
specialist outbound and inbound operators worldwide and VFS
Global)
The members of Group Executive Board will remain
unchanged, but assume different responsibilities. The group
structure will focus on the following growth drivers:
•
expanding activities in Asia • the sustainable development of
the European tour operating business • the integration of
Gullivers Travel Associates (GTA) • expanding existing and
creating new growth areas.
“Combining our various business
activities all over the world into three new divisions is a
logical consequence of our growth strategy, our acquisition
activity and a result of our investment and cost-reduction programme, which will end in 2011,” said Peter Rothwell, CEO of
the Kuoni Group. “Following the acquisition of GTA, Kuoni is fast
developing into a diversified global travel group with strong
activities in Asia. Our updated group structure will enable us to
better position our existing tour operating businesses and take
full advantage of cross border and cross company synergies. At the
same time, it will equip us to accelerate our development of those
activities - especially our Asian business - that have strong
growth credentials.”
The three new divisions of the Kuoni Group will
comprise the following business activities:
Division Outbound Europe
This division will be home to all the Kuoni Group’s European
tour operating activities in both the premium travel and the
package tour segments plus the Scandinavia-based airline Novair
and the Playitas sports and leisure resort on Fuerteventura.
The
division will not include the group’s autonomous specialist travel
brands (which will be incorporated into division Emerging Markets
& Specialists).
The Outbound Europe division represents a further
bundling of strengths and resources within the Kuoni Group’s
European tour operating business. The division will also include
the group’s global Procurement & Production unit that was
established at the end of 2009.
The reorganisation sees the
creation of a new dedicated pan European online business unit
within Outbound Europe that will manage all the group’s websites
which are in direct (B2C) customer contact.
The new online
business will also encompass the present online part of the Group
Distribution unit and the B2C business of Octopus Travel, which
was acquired with the purchase of GTA. The Outbound Europe
division will be led by Group Executive Board member Leif Vase
Larsen.
Division Global Travel
Services
The
integration of Gullivers Travel Associates (GTA) into the existing
activities of Kuoni Destination Management (KDM) creates the Division Global Travel Services. The new division consists of the
core business-to-business (B2B) activities of online Fully Independent Travellers (FIT), group leisure travel and MICE
(Meetings, Incentives, Conferences & Events).
The concentration of
the same business segments from GTA and KDM within the same
division should generate synergies announced with the acquisition
of GTA earlier this year.
Global Travel Services will be led by Group Executive Board member
Rolf Schafroth.
Division Emerging
Markets & Specialists
The Emerging Markets & Specialists division will
accommodate the Kuoni Group’s tour operating activities in Asia
(India, China and Hong Kong), Russia and the visa facilitation
services of VFS Global.
The division will also be home to the
group’s portfolio of autonomous specialist outbound travel brands,
along with its specialist inbound destination management service
providers (Asian Trails, Desert Adventures Tourism, Private
Safaris, AlliedTPro, Sita, Distant Frontiers and Australian Tours
Management).
These brands share the key features of strong
entrepreneurial leadership and a keen customer focus, and are
active in a business segment that offers substantial growth
prospects.
The division will be led by Group Executive Board
member Stefan Leser.
The updated Kuoni Group structure
will be effective from 1 October 2011. The group’s global
functional units (Finance, Group IT, Corporate Identity & Design,
Corporate Communications, HR and Corporate & Business Development)
will continue to report directly to CEO Peter Rothwell.
The Kuoni
Group reporting for the 2011 business year will be based on the
present group structure. Turnover in the range of CHF 5 billion is
expected for the 2011 financial year as a whole, and EBIT margin
similar to 2010.
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