Kuoni to exit tour operating biz in India, others

Swiss travel firm Kuoni will exit tour operating businesses in select countries, including India where it employs a total of nearly 1,500 people, citing challenging market conditions.
"This exit from the tour operating business includes Kuoni Switzerland, UK, Benelux, Hong Kong/China and India as well as operations in Scandinavia/Finland," the firm said in a statement.
This affects approximately 3,800 people in total and business that generated turnover of CHF 2.2 billion in 2014, it added.
In India, the company operates through a wholly-owned arm, Kuoni Travel Group, India. It was formed in 1996 through the acquisition of SOTC, a leading outbound package tour brand in the country. In 2000, it acquired another leading player in the sector, SITA.

As per Kuoni India's website, it employs over 1,500 travel professionals and is active across travel segments, including leisure, business, destination management services, and education.
Giving reasons for its exit from the tour operating activities, Kuoni said despite being in the top five tour operators in Europe and has a well-established presence in Hong Kong and India, it's outbound business faces increasing challenges from changing market conditions.

"Kuoni firmly believes that the outbound business can be better developed under new ownership, potentially leveraging scale or specific local strengths," the company said, adding it intended to find new owners in the course of 2015.

The company will "seek assurance about the continuation of the existing business locations and the continued employment of staff," Kuoni said.
The exit from the tour operating business will not have any impact on customers or their current and future bookings, it added.
The Group's reduced portfolio of activities will enable it to focus on three key strategic initiatives to accelerate growth, Kuoni said.
"Kuoni Group will invest additional resources in Asia, the Middle East and Africa by leveraging its existing footprint and expanding its capabilities across all divisions," it said.
The group would focus on enhancing its customer service and increasing efficiency by developing new technology platforms and further digitalising its businesses, it added.

"The company aims to selectively expand its service offering and provide its existing services to a wider range of customer segments by utilising its cross-selling potential," Kuoni said.