ANNUAL REPORT 1999 - Chinese University of Hong...
55
The annual report is also available in French and in German. Le rapport annuel est également disponible en français et en allemand. Der Geschäftsbericht ist auch in französischer und deutscher Sprache erhältlich. Kuoni Travel Holding Ltd. Neue Hard 7 CH-8010 Zurich Phone: (+41) 1-277 44 44 Fax: (+41) 1-271 52 82 Internet: www.kuoni.com IMPRESSUM: Edited and published by: Kuoni Travel Holding Ltd., Corporate Communications Design/realisation/typesetting: Kuoni Travel Ltd., Brochure Production Lithography: NC AG, Urdorf Printing: Benteli Hallwag Druck, Berne Photography: Blue Planet, Zurich Incolor AG, Zurich Prisma, Zurich The Image Bank, Zurich Kuoni Bildarchiv, Zurich Robert Hansen, Baden ANNUAL REPORT 1999
Transcript of ANNUAL REPORT 1999 - Chinese University of Hong...
The annual report is also availablein French and in German.
Le rapport annuel est égalementdisponible en français et en allemand.
Der Geschäftsbericht ist auch infranzösischer und deutscher Spracheerhältlich.
Kuoni Travel Holding Ltd.Neue Hard 7CH-8010 Zurich
Phone: (+41) 1-277 44 44Fax: (+41) 1-271 52 82Internet: www.kuoni.com
IMPRESSUM:
Edited and published by: Kuoni Travel Holding Ltd.,Corporate Communications
Design/realisation/typesetting:Kuoni Travel Ltd., Brochure Production
Lithography:NC AG, Urdorf
Printing:Benteli Hallwag Druck, Berne
Photography:Blue Planet, ZurichIncolor AG, ZurichPrisma, ZurichThe Image Bank, ZurichKuoni Bildarchiv, ZurichRobert Hansen, Baden
ANNUAL REPORT1999
C O N T E N T S
Page
Kuoni at a glance 2Organisation 4
Report of the Chairman and the President: 7Well equipped for the future
Group: 13Excellent operating performance
SBU Switzerland: Fit for the new millennium 21
SBU United Kingdom and North America: A defining year 28
SBU Europe: Successful restructuring 35
SBU Business Travel: A promising launch 42
SBU Incoming and Asia: Major improvements 47
Information Technology: Exploiting synergies 51
The Kuoni network in Europe, America, Asia and Switzerland 54
Our market: Top ten keep on growing 61
Our competencies:Leisure Travel, Business Travel, Incoming 65Pioneer in the Indian Ocean 68
Our staff:Young and enterprising 70Working in New York 72
Our responsibilities:Corporate Governance – Creating value for all 74Ecology – Think global, act local 76Health & Safety – Committed to customer safety 80Society – At home in SOS Children’s Village 82
Executive and Corporate Bodies 86
Kuoni Encyclopaedia 96
Addresses 100
3T H E M O S T I M P O R T A N T F I G U R E S2
Kuoni at one glanceKuoni Group(consolidated as at 31 December)
Turnover
By Strategic Business Unit:
Switzerland
UK and North America
Europe
Business Travel
Incoming and Asia
By Activities:
Leisure Travel
Business Travel
Incoming
Earnings before interest, taxes and
amortisation of goodwill (EBITA)
By Strategic Business Unit:
Switzerland
UK and North America
Europe
Business Travel
Incoming and Asia
Group
Group profit before exceptional items
Group profit
Cash flow
Investment in tangible and intangible
assets
Balance sheet total
Average number of personnel
1999CHF m
3,509
911
918
1,067
162
451
2,987
162
360
152.8
37.5
92.2
17.1
15.5
5.5
–15.0
117.3
90.5
156.5
168.9
1,770
6,528
1998CHF m
2,896
844
599
903
158
392
2,435
158
303
118.4
31.0
72.6
16.8
9.6
2.1
–13.7
103.2
103.2
130.7
111.9
1,363
6,008
1999CHF
251,158,551
112,180,966
97.80
489.00
73.30
366.70
414.80
2,074.20
22.001)
110.001)
6,790
5,050
6,610
2,115 m
1,330 m
1998CHF
160,334,104
105,829,711
81.70
408.50
64.50
322.60
323.90
1,619.50
22.00
110.00
8,890
3,680
5,450
1,744 m
1,331 m
Kuoni Travel Holding Ltd.
Investment in equity holdings
Net profit for the year
Information for investors
Consolidated cash flow
per registered share A
per registered share B
Group profit before exceptional items
per registered share A
per registered share B
Consolidated shareholders’ equity
per registered share A
per registered share B
Dividend
per registered share A
per registered share B
Stock market prices
registered share B high
low
at year end
Stock market capitalisation 31 Dec
Annual trading volume
1) Proposal of the Board of Directors tothe General Meeting of Shareholders
5O R G A N I S A T I O N4
FinanceKuoni Group
Max E. Katz**
InformationTechnology
(IT)Konrad Iten***
CorporateDevelopment
Internal auditors
CorporateDevelopment
Assistant to CEO
Switzerland
Kuoni Reisen AG
Edelweiss Air AG
Manta Reisen AG
Privat Safaris Reisebüro AG
PRS AG
Railtour Suisse SA
Reisebüro Popularis
Rotunda Tours AG
Switzerland
Kuoni Reisen AGIncoming Services
Denmark
Alletiders Rejser A/S
India
Kuoni Travel (India) Ltd.
SITA World Travel (India) Ltd.
Asia
P&O Travel Ltd.,Hong Kong
P&O Garden City Travel Pte. Ltd.,Singapore
P&O Regale Travel Co. Ltd., Thailand
Greece
Hellenic Tours S.A.
Hellenic Island Services Ltd.
Kenya
Private Safaris (East Africa) Ltd.
SBU*
Switzerland
Thomas Stirnimann**
United Kingdom
Kuoni Travel Ltd.
House of Specialists Ltd.:Voyages Jules Verne
Airwaves
Caribbean
Kuoni Caribbean Hotels Ltd.
North America
Intrav, Inc.Clipper Cruise Line Inc.
Germany
Euro Lloyd Reise-büro GmbH & Co.KG (BTI Euro Lloyd)
Austria
Reisebüro Kuoni Ges.m.b.H. (BTI Austria)
Switzerland
Kuoni Reisen AG(BTI KuoniSwitzerland)
Hungary
Kuoni Utazási Iroda Kft. (BTI Hungary)
France
Voyages Kuoni SA
Italy
Kuoni Gastaldi ToursS.p.A.
Austria
N-U-R NeckermannReisen AG
Reisebüro Kuoni Ges.m.b.H.
Restplatzbörse Ges.m.b.H.
Cosmos Ges.m.b.H
Allround Travel Inter-national Ges.m.b.H.
Spain
Viajes Kuoni S.A.
Hungary
N-U-R Neckermann Utazás Kft.
Netherlands
Kuoni Travel Nederland B.V. (Special Traffic)
SBU*Europe
Marcel Herter**
SBU*Business
TravelReto Bacher**
SBU*Incoming
& AsiaIbrahim Atallah***
President of theExecutive Board and CEO
Hans Lerch**
Chairman of theBoard of Directors
Daniel Affolter
SBU*United Kingdom & North America
Peter Diethelm**
*) Strategic Business Unit
**) Member of the Executive Board
***) Member of the expanded Executive Board
March 2000
R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
Well equipped for the future
For Kuoni, 1999 was both a very successful and turbulent
year. Both turnover and operating profit rose to new record levels.
With such success to its credit, the Kuoni Group need not fear a
comparison with the biggest in the European tourism industry. On the
contrary: Kuoni’s performance has elevated the Groupto the top of
the European tourism league (see page 16).
Following Kuoni’s failed attempt to merge with the UK tour
operator, First Choice, the Executive Board was reorganised and
expanded in July 1999. Under Hans Lerch, the new President of the
Executive Board, Thomas Stirnimann took over the Strategic Business
Unit (SBU) Switzerland. The Executive Board was expanded to in-
clude Konrad Iten as Chief Information Officer and Ibrahim Atallah
as Senior Vice-President of the SBU Incoming and Asia.
7
Daniel Affolter (left)Chairman of the Board of Directors
Hans Lerch (right)President of the Executive Board andChief Executive Officer
Growth as an end in itself?
We are convinced that there is no critical size for a multinatio-
nal. However, we do believe that a critical size exists in specific
markets and countries. For example, some 200,000 charter passengers
in Denmark represents a good annual figure, but a similar number
would be far too small to survive in the German market.
Our Board of Directors and Executive Board therefore follow
a policy that seeks to strengthen the position of the various group
companies via acquisitions so as to attain a critical mass in each mar-
ket and create a healthy basis for future organic growth. The addi-
tions to the Group in recent months should be seen in this context.
• In March 2000, Kuoni successfully acquired Sita World
Travel in New Delhi, making
our company India’s number one
in all three main operating areas:
Outbound, Business Travel and
Incoming Services.
• Following the announce-
ment in December 1999 that we
were taking an equity holding of
45% in the tour operator
Apollo, which operates in Sweden, Denmark and Norway, plus the
acquisition of the activities of the up-market Danish tour operator
Dane Tours and the travel agencies of Kisbye Rejser, Kuoni has assu-
med the number 3 position in Scandinavia’s tourist industry. This
forms a good basis, from which further organic growth is possible.
• In September 1999, we acquired luxury tour operator Intrav
of St. Louis, Missouri/USA. This gives us an entry into the growing
US market where we intend introducing the successful product range
offered by Kuoni United Kingdom.
Two further moves belong to this same strategic approach:
in summer 1999, we agreed to take a 49% equity holding in the
TUI subsidiary TUI Suisse in Switzerland; we also decided to expand
9R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
An international management culture
There is a lot more to being a global company than having
international operations. We are convinced that the ability to success-
fully manage a company on a global basis and to integrate new
subsidiaries into a cohesive
whole is one of the really major
challenges of the future.
Kuoni is well placed in this
respect. As long ago as the 1930s,
our company recognized that
the Swiss market was too small
and opened its first foreign
outlets. Kuoni’s overseas sales
activities in the Incoming segment
were expanded almost 40 years ago when we opened a branch in Tokyo.
Today Kuoni has offices in 27 countries. And this number
is more than just a statistic: It is also symbolic of the Kuoni culture.
The successful management of companies located outside one’s home
market requires an international management culture plus the re-
cognition that a decentralized leadership philoso-
phy is important for long-term success.
Thanks to its history and the many years of
experience of our new management
team in foreign markets, Kuoni is well
equipped to take on future challenges.
And we are proud to have lived an interna-
tional culture for much of our history.
8
“We are proud
to have lived an
international
culture for much
of our history.”
A word of thanks
Once again in 1999, our staff mem-
bers made an enormous contribution to our
continuing success story. Let us take this
opportunity to say a big thankyou. Without
the full commitment of all our employees
throughout the organisation, we would not be
the successful Group we are today.
Our shareholders also deserve a special word of thanks for
their faith in our company during the turbulent months of last spring.
Our Board of Directors and Executive Board are fully aware
of their responsibilities and will continue to devote their efforts to
building on the success of the Kuoni Group. The new Executive Board
has many years of collective experience in the international tourism
business. They form an excellent team that is well equipped to ride the
ongoing wave of global consolidation in the industry and to success-
fully rise to the challenge of the paradigm change that e-commerce is
engendering in the tourism industry as well.
Daniel Affolter Hans LerchChairman of the Board President of the of Directors Executive Board and CEO
11R E P O R T O F T H E C H A I R M A N A N D T H E P R E S I D E N T
the fleet of Kuoni’s own Swiss charter airline Edelweiss Air with the
addition of an Airbus A330 in November 2000.
At the leading edge of e-commerce
With the purchase of a 12.5% stake in the UK’s “TV Travel
Shop”, Kuoni has demonstrated its conviction that interactive televi-
sion will play an important role
in the changes that are reshaping
distribution. It underlines the fact
that Kuoni is taking an active and
leading part in this development.
In a further move in the
same direction, Kuoni has signed
a declaration of intent to set
up a joint e-commerce venture
with India’s biggest company,
TATA Industries. The plan is to
develop, together with TATA
Consultancy Services, a vertical
travel portal. Some time ago, Kuoni also set up its own project
team which has been granted a generous budget to develop new
e-commerce sales avenues.
10
“Interactive
television will play
an important role
in the ongoing
development
of the future sales
landscape.”
G R O U P
Excellent operating performanceThe 1999 financial year was influenced
by two main factors: the merger project with
First Choice and the Kuoni Group’s out-
standing operating performance. Group
turnover rose by 21.2%, from CHF 2.9 bil-
lion to CHF 3.5 billion. Operating profit
(EBITA) was up by an impressive 29%,
to a new record of CHF 152.8 million
(1998: CHF 118.4 million). The Group’s
ordinary profit increased by 13.7% to
CHF 117.3 million (1998: CHF 103.2 million). After deduction of ex-
traordinary costs for the merger project with First Choice, the figure is
at CHF 90.5 million (1998: 103.2 million; –12.3%). Ordinary profit
per registered share B was CHF 367 – a new record high. The Board
of Directors proposes to the General Meeting of Shareholders that the
dividend per registered share B remain unchanged, at CHF 110.
The figures for the 1999 financial year have been compiled
using the “European method” of sales calculation. This method
is used by the major European tour operators, and the Kuoni Group
first introduced it for its 1999 semi-annual report. Under the Euro-
pean method the Group turnover contains only commissions from the
sale of leisure and business travel services and tour operating turn-
over. The definitions of sales in the tour operating area have remained
unchanged, however.
13
Max E. KatzExecutive Vice-President Chief Financial Officer
An analysis of turnover by business unit gives the following results:
• Europe remains the Strategic Business Unit (SBU) with the
highest turnover: CHF 1,067 million (1998: CHF 903 million;
+18.2%). The SBU’s growth through acquisitions was +11.9%, while
internal sales growth was +7.1%.
• The SBU United Kingdom and North America saw strong
acquisition-driven growth (+37.2%), and also defied the market trend
by posting above-average 14.1% internal growth. The positive cur-
rency effect accounted for only 1.9% of the impressive total increase
of 53.2% to CHF 918 million (1998: CHF 599 million).
• The SBU Switzerland (1999: CHF 911 million; 1998:
CHF 844 million; +7.9%) increased internal sales by 5.4%, also sur-
passing market growth.
• The SBU Incoming and Asia benefited from the recovery in
Asia, increasing its turnover again by 15.0% to CHF 451 million
(1998: CHF 392 million). 11.7% growth was recorded internally.
• After a slow start, the SBU Business Travel also ended the
year under review with the turnover up CHF 4 million to CHF 162
million (1998: CHF 158 million; +2.5%). 0.2% of this was internal.
Percentage shares of turn-
over by activities show that the
main emphasis of our operations
clearly lies in our core business
of leisure travel. This sector grew
to 85.1% (+1% point) driven by
acquisition activity. Despite strong
organic growth, Incoming’s
share declined slightly by 0.1%
to 10.3%. Business travel now
makes up 4.6% (–0.9% point)
of the total turnover.
Operating profit (EBITA)
rose by 29.1% from CHF 118.4
million to CHF 152.8 million –
again, an above-average increase.
All units improved last year and
thus contributed to this satisfying
result. At 16%, internal EBITA
growth was higher than the in-
crease in turnover, which means
that margins have improved.
While the currency effect was a
negligible 0.9%, acquisitions
and divestments led to a positive
net increase of 12.2%.
Although the market envi-
ronment in Switzerland has
been highly complex, the develop-
ment of financial income was
extremely pleasing. Another re-
cord figure of CHF 47.4 million
(1998: CHF 43.1 million; +10.0%)
15G R O U P14
Percentage Share of Group Sales 1999
SBU Switzerland: CHF 911 million
SBU Incoming and Asia:
CHF 451 million
SBU Europe: CHF 1,067 million
SBU United Kingdom and
North America: CHF 918 million
SBU Europe: CHF 17.1 million
SBU Business Travel: CHF 15.5 million
SBU Incoming and Asia:
CHF 5.5 million
SBU United Kingdom and
North America: CHF 92.2 million
Percentage Share ofGroup EBITA 1999 per SBU
SBU Switzerland: CHF 37.5 million
Changes in Group Turnover 1995–99
CHF b
4
3
2
1
095 96 97 98 99
Changes in EBITA and Group Profit1995–99
CHF m
150
125
100
75
50
25
095
EBITA Profit
96 97 98 99
Changes in Group Profit 1995–1999per Registered Share B
CHF
400
300
200
100
095 96 97 98 99
SBU Business Travel: CHF 162 million
Ordinary Group profit per registered share B reached a new
record of CHF 367, continuing the unbroken record of success since
1995. Because this figure falls to CHF 283 per registered share B
once the extraordinary costs for the merger project with First Choice
are applied, Kuoni’s flexible dividend policy (which involves dis-
tributing between 30 and 35% of Group profit to shareholders each
time) would mean a reduction in the dividend. However, since the
costs involved are one-off items which do not influence the Group’s
longer-term performance, the Board of Directors is proposing to
the General Meeting of Shareholders on 16 May 2000 that the divi-
dend per registered share B should remain at CHF 110.
Investment in fixed assets rose sharply in the year under review,
to CHF 168.9 million (1998: CHF 111.9 million; +50.9%). This
increase is primarily due to the acquisition of the three new Airbus
A320-200 which were delivered to our airline Edelweiss Air in the
course of 1999. Further significant investments were made in the IT
sector and we also purchased and renovated property. The invest-
ments were practically fully paid for from the current cash flow of
CHF 156.5 million (1998: CHF 130.7 million; +19.7%).
17G R O U P
was achieved, making a substan-
tial contribution to the Group’s
results. With the purchase of the
new US subsidiary Intrav (then
listed on the Nasdaq), the finan-
cing required for acquisitions
reached a new peak. The securities
holdings kept for this purpose
were sold at a profit by choosing
a time when market conditions
were favourable. As a result, unrealised capital gains were slightly
reduced to CHF 40.6 million (1998: CHF 46.0 million; –11.7%).
The figure for earnings before taxes and amortisation of
goodwill, used for international comparison purposes, came to
CHF 200.2 million (1998: 161.5 million; +24.0%) – the first time in
Kuoni’s history that it has exceeded the CHF 200 million mark.
Expressed as a percentage of the turnover, Kuoni tops the earnings
list, ahead of its ten major European competitors, with a figure
of 5.7%.
Ordinary consolidated profit too reached a new record figure
of CHF 117.3 million, up 13.7% on the previous year (1998:
CHF 103.2 million). After deduction of extraordinary costs of
CHF 26.8 million for the merger project with First Choice, Group
profit came in at CHF 90.5 million (1998: CHF 103.2 million;
–12.3%). It is also worth noting in this context that the Kuoni Group’s
dynamic acquisition strategy is causing a steady rise in the figure
for goodwill amortisation. Internal growth in Group profit was a gra-
tifying 12.6%, with the positive currency effect contributing only
0.8%. As expected, the tax rate rose again in 1999, from 23.7% to
26.3%. This trend is likely to continue in the coming years, as
losses brought forward are being reduced on an ongoing basis and
companies in countries with higher rates of taxation are being
acquired.
16
It is difficult to judge well in
advance how demand is going to
develop in the travel sector.
Nevertheless, the first
indications in the
current financial year
are encouraging. In
Switzerland, the early
appearance of the most important Swiss brochures and the intro-
duction of a new price structure that offers incentives to book early
have had very positive effects on sales. In the United Kingdom,
bookings for 2000 have made an excellent start, against the market
trend. Our companies in France and Italy too have ended the first
months above budget.
Once again it appears that with our broad spectrum of activi-
ties over a wide range of different regions, we can face the future
with optimism.
Max E. KatzExecutive Vice-President
Chief Financial Officer
19G R O U P
A promising start to the year 2000
On 12 January 2000, the Kuoni Group launched the first bond
issue in the company’s history. The CHF 205 million 2000–2005
convertible bond with a 1% coupon entitles investors to subscribe for
one Kuoni share at a price of CHF 8,905 during its term. This attrac-
tive bond has provided us with the necessary funds for further acquisi-
tion projects on favourable terms, and has made constructive use of
the company’s existing 23,000 treasury shares.
Our growth strategy too is being successfully continued. The
purchase of an incoming agency in Holland on 7 January 2000
has secured Kuoni a leading position in the important Dutch incoming
market. On 18 February 2000, the Group bought 45% of the dy-
namic Scandinavian travel firm Apollo Resor, which is based in Stock-
holm, and at the same time secured an option to purchase a further
30% as of July 2001. On 20 March 2000, Kuoni acquired the busi-
ness of the small but popular Danish tour operator Dane Tours
and the travel agencies of Kisbye Rejser. Dane Tours has a leading
position in the market for scheduled flight holiday arrangements –
a concept which Kuoni successfully offers worldwide.
On 13 March 2000 the Kuoni Group exercised its option to
take up a 49% stake in the Preussag subsidiary TUI Suisse. TUI Suisse
is the Number 3 in the Swiss market,
and has been cooperating with Kuoni
Switzerland in the area of charter flights
and hotels since June 1999. Finally,
on 24 March 2000 Kuoni signed the
contract for the full acquisition of
the successful Indian travel company
SITA World Travel (India) Ltd. The
merger of Sita and Kuoni India, the leading tour operator on
the subcontinent, will create by far the largest tour company in the
fast-growing Indian tourism market.
18
S B U S W I T Z E R L A N D
Fit for the new millenniumThe Strategic Business Unit (SBU) Switzer-
land reported very good results for 1999
despite the transfer of the Business Travel
department to a separate unit with effect
from 1 January 1999. Turnover rose by
7.9% to CHF 911 million (1998: CHF 844
million) despite the previous year’s high
comparison base. EBITA also forged ahead,
regardless of the difficult market conditions,
recording a 21% gain to hit a new record
of CHF 37.5 million (1998: CHF 31 million). This impressive result
is mainly due to Kuoni Reisen AG’s market leadership in the
beach holiday segment; a flexible approach to the composition of its
products has allowed it to react well to the changing needs of its
customers. The recovery of the holiday destination Egypt also had a
positive impact on sales. In retailing, the separation of Leisure and
Business Travel is now complete, allowing
efficiency improvements in each field.
The subsidiaries – especially Edel-
weiss Air and Railtour Suisse –
are also making gratifying pro-
gress.
21
Thomas StirnimannExecutive Vice-PresidentSBU Switzerland
CHF 597 million correspond to the adjusted 1998 figure. The new
structure together with rigorous cost management helped boost
income. Sales of our own brand products hit a new peak, with Re-
tailing making a major contribution to Tour Operating’s record
result. Following Martin Wittwer’s appointment to the post of CEO
at our strategic partner TUI Suisse, we appointed Daniel Reinhart
to head the department with effect from 1 July 1999.
Kuoni still leads the Swiss market with its Internet offering
(www.kuoni.ch). This allows the online booking of flights via
the Ticket Shop database which contains the flights of all operators
and last-minute flights. The Internet is still being used primarily
as an information source and the proportion of Internet sales to total
sales remains low. However, the upward trend is very steep, albeit
at a low level.
Edelweiss Air AG:
Switzerland’s most modern fleet is flying high
In its fourth business year, the holiday airline has once again
exceeded its targets, not just in terms of quantitative, but also quali-
tative performance. The readers of Germany’s travel magazine
“Globo” voted Edelweiss Air the number 2 leisure airline in Europe
at the beginning of 2000. Edelweiss Air not only left its Swiss rivals
Kuoni Reisen AG
Tour Operating: Market leadership extended
Tour Operating was able to extend its leading position in the
Swiss market with non-consolidated gross sales of CHF 755 million
(1998: CHF 700 million; +7.9%). The fastest-growing holiday des-
tinations were Egypt, Thailand, Australia, Tunisia and Spain. Margins
improved further despite last year’s major advance. This represents
a particularly solid achievement given that the battle for market share
was hard fought in 1999, a year of excess capacities.
Helvetic Tours, our budget brand, was the major contributor
to our successful capacity management. It presented itself to the
public with a particularly original and bold advertising campaign. The
company is gaining more and more popularity and recognition in
the beach holiday market.
Kuoni Reisen AG
Retailing: Own brand sales hit a record
The wisdom of the successful move to separate the retailing
activities of Leisure and Business Travel was confirmed in the repor-
ting year. The resulting shift in sales once again render compari-
sons with previous years difficult. Non-consolidated gross sales of
23S B U S W I T Z E R L A N D22
Percentage Share of non-consolidated Turnover 1999SBU Switzerland
Kuoni Travel
Tour Operating: 43.5%
SBU SwitzerlandChanges in EBITA
CHF m
50
40
30
20
10
095 96 97 98 99
SBU SwitzerlandChanges in Turnover
CHF m
1000
750
500
250
095 96 97 98 99
Reisebüro Popularis: 6.6%
Edelweiss Air: 4.5%
Railtour Suisse: 4.5%
PRS: 2.7%
Manta Reisen: 2.0%
Privat Safaris: 1.1%
Rotunda Tours: 0.7%
Kuoni Travel
Retailing: 34.4%
Manta Reisen has only been part of the Business Unit Switzer-
land since November 1998, which means a comparison with the
previous year is not meaningful. Non-consolidated gross sales for 1999
amounted to CHF 34 million. Kuoni and Manta’s combined market
share of the Maldives holiday market is over 60%.
Privat Safaris Reisebüro AG:
Land in sight
After several difficult years, the demand for Kenya holidays
has finally picked up once again and is well on the road to recovery.
Given its quality reputation as an East Africa specialist, Privat
Safaris has benefited from this resurgence of interest to record much
improved 1999 earnings. Prospects for next winter indicate a further
improvement, which will also provide a boost to Private Safaris
(East Africa) Ltd., the Incoming subsidiary domiciled in and operating
from Nairobi. Non-consolidated gross sales at the Swiss subsidiary
Privat Safaris Reisebüro AG amounted to CHF 20 million in the year
under review (1998: CHF 18 million; +11.1%).
Railtour Suisse SA:
On the fast track
For the twelfth time in a row, Railtour Suisse SA, in which
the Kuoni Group now holds an 87% stake, reported record results.
The trend towards taking short trips has provided a further boost
to this Kuoni subsidiary, a rail specialist. Its 1999 non-consolidated
25S B U S W I T Z E R L A N D
Crossair and Balair behind, it also beat the European majors such as
Condor, Hapag Lloyd and LTU.
The year was also dominated by the replacement of the fleet of
three MD 83 with three brand new, environment-friendly, comfor-
table and quiet Airbus A320. Edelweiss Air now owns Switzerland’s
youngest and most modern fleet of aircraft. Non-consolidated
gross sales more or less remained stable at CHF 79 million despite the
fleet replacement (1998: CHF 82 million; –3.7%). Edelweiss Air
is a major Kuoni success story. The expansion of the fleet by an Air-
bus A 330-200, which will allow Kuoni customers to fly long-haul
benefiting from Edelweiss’s comfort and punctuality from November
2000, should give a fresh boost to the company.
Manta Reisen AG:
New products bring success
Despite the coral reef problem (now more or less over) at one
of Manta Reisen’s most important destinations, the Maldives, the
specialist tour operator enjoyed a very successful year. Diving holidays
in particular, as well as the new products Honeymoon Holidays
and India, were able to offset the temporary decline in bookings to the
Maldives, contributing to the positive overall trend.
24
PRS AG is now well equipped
to reinforce its position as the
third pillar in Kuoni’s Retailing
operations.
Rotunda Tours AG:
A slight drop in demand
Rotunda Tours, a sub-
sidiary specialising in southern Africa, has been unable to escape the
overall slowdown in demand for holidays to southern Africa,
despite its undisputed position as market leader. Non-consolidated
gross sales slipped 7.1%, in line with the general market trend,
from CHF 14 million (1998) to CHF 13 million (1999). Income held
up aided by a policy of consistent cost management and successful
negotiations to improve existing local agreements.
Thomas StirnimannExecutive Vice-President SBU Switzerland
27S B U S W I T Z E R L A N D
gross sales rose by 9.9% to CHF 78 million (1998: CHF 71 million).
Ongoing process improvement has also further improved margins in
spite of low sales per individual booking.
Reisebüro Popularis:
Back on the growth path
After a phase of stabilising last year, the continued expansion of
Helvetic Tours branch offices in 1999 has led to a fresh jump in
sales at Reisebüro Popularis. Sales at its tour operating division Coop
extra Reisen, a direct sales specialist, fell slightly short of last year’s
figure, the more risky beach holiday products (i.e. involving charter
flights) having been eliminated from its range. Non-consolidated gross
sales improved 3.6% from CHF 110 million to CHF 114 million.
PRS AG:
Equipped for the future
The Rewi Reisen, L&M Reisen and Tevy Reisen travel agents,
which operate in the Zurich area, combined
forces in 1999 to form a dynamic group
under the name of PRS AG, which targets
the local market. A comprehensive pro-
gramme of upgrading sales outlets to im-
prove customer comfort in various
locations as well as the restructu-
ring have left their mark on the
sales figures. Non-consolidated
gross sales reached CHF 47 million
(1998: CHF 54 million; –13%).
26
Our tour operation core business had a brilliant start to the
year as Egypt and Kenya, the two problem destinations of 1998,
showed a healthy recovery. Egypt was a real success story in 1999 and
moved from No. 19 in our league table of destinations to No. 7
in one short year, whilst in Kenya we took pro-active action, gaining
market share and establishing an excellent base for further growth
in 2000. The Far East continued its strong performance with Thai-
land, Singapore and Bali showing growth in excess of 30%,
while the popularity of China (including Hong
Kong) declined.
Strategically, 1999 was a very important
year for Kuoni UK. During the summer months,
Kuoni was constantly in the limelight of the UK
media as a result of merger plans with First Choice.
This high profile exposure did not have any nega-
tive impact despite the fact that the merger did not take
place. We have now focused strongly on our core competence as a spe-
cialist for flexible holiday arrangements to far-away places, offering
tailormade holidays at package tour prices. Despite the consolidation of
the results from direct sales tour operator Voyages Jules Verne (acquired
December 1998), a lower margin business, we still achieved an overall
EBITA margin of 10%. This is well over double the industry average due
S B U U N I T E D K I N G D O M A N D N O R T H A M E R I C A
A defining year1999 was a defining year for our Strategic
Business Unit (SBU). The acquisition
of US tour operator Intrav in September
1999 represented a real milestone in the
SBU’s history and resulted in its enlarge-
ment to SBU United Kingdom (UK) and
North America. Thanks to acquisitions
and internal growth, turnover grew from
CHF 599 million to CHF 918 million
(+53.2%). Combined with another excellent performance of our
core UK tour operation, the new SBU achieved an EBITA of
CHF 92.2 million (+27%) to end the millennium with an outstan-
ding result.
United Kingdom:
Market share increased
As ever, the enormous range of Kuoni worldwide products en-
abled Kuoni UK to balance the changing popularity of various des-
tinations, and not even the well publicised millennium flop would stop
our UK operation from achieving a record turnover of CHF 799
million (1998: CHF 588
million; +35.9%) and
a new best ever EBITA
result.
28 29
Peter DiethelmExecutive Vice-President SBU United Kingdom &North America
SBU United Kingdom and North AmericaChanges in EBITA
CHF m
100
80
60
40
20
095 96 97 98 99
SBU United Kingdom and North AmericaChanges in Turnover
CHF m
1000
800
600
400
200
095 96 97 98 99
The current distribution of our products via travel agents
(63%) and direct to consumers via the Internet, telephone sales and
the call centre (37%) puts us in an excellent position to make use
of new distribution opportunities which are opening up. Indeed, our
shareholding of 12.5% in the TV Travelshop, acquired in January
2000, confirms our strategy of continuously examining all distribu-
tion options available, whether traditional, new or interactive.
Maintaining IBU business strategy
The Independent Business Units (IBUs) continue to focus on
further expansion in their respective niche markets of Sports,
Incentives and Student Travel as well as Trade Fairs, travel to the Far
East and direct sales (Voyages Jules Verne and The Travel Collection).
They develop and distribute the products according to the very
requirements of their niche business while at the same time benefitting
from the financial strength, back office facilities and general infra-
structure of the Kuoni UK Group.
North America:
A great potential for further development
The acquisition of Intrav in September 1999 represented
a real milestone in the history of the SBU. We analysed the American
market in depth and came to the conclusion that there was a great
potential for further development. The acquisition of Intrav, a very
profitable specialist tour
operator (consolidated in
the group figures for six
months effective July 1999)
provides Kuoni with an
opportunity to further de-
velop the top end of the
small ship and private jet
business, whilst at the same
31S B U U N I T E D K I N G D O M A N D N O R T H A M E R I C A
to our product differentiation and niche market
position in the UK leisure market.
There has been much talk about the so-
called «directional selling» by the retail divisions
of the vertically integrated travel companies
like Airtours, Thomson and Thomas Cook. The
policy introduced in 1998 reduced the number
of tour operators sold in each retail shop. How-
ever, as Kuoni has a strong brand with a clear
product differentiation compared with the in-
house products of the above mentioned travel
companies, this business strategy actually in-
creased, rather than reduced our market share
for long-haul holidays.
This report on the United Kingdom would not be complete
without mentioning our annual awards. 1999 was indeed a vintage
year. We won the coveted Golden Globe award – voted by travel
agents – for «Britain’s Best Longhaul Tour Operator» for the 18th
consecutive year. The readers of the «Daily Telegraph» voted
Kuoni «Britain’s Best Tour Operator» and in addition, we received
numerous accolades for best operator to selected destinations
such as Malaysia, Sri Lanka, Thailand, the Maldives and Kenya.
Opening new distribution channels
In 1999, we also introduced Britain’s first interactive holiday
web site, www.kuoni.co.uk, where holidays can be booked on the
Internet without any manual intervention. The site has already won
awards for its user friendliness and functionality and during the
current year we shall develop features which are more advanced than
we thought possible only a year ago. Call centre efficiency further
improved and with the introduction of our VIP helpline for regular
Kuoni clients, we have enhanced the level of service well beyond
what is currently available in the industry.
30
promotion to these key positions within the Kuoni Group. I myself
will continue to assume the responsibility as Executive
Chairman of Kuoni UK and North
America and remain a member
of the Executive Board of the
Kuoni Group.
At the time of writing,
the UK travel industry is
receiving quite some bad press.
Very high discounts offered for summer 2000 sales, increased first
quarter losses and the slow growth of the total market had a very
negative impact on the share prices of the UK-quoted vertically inte-
grated companies. No doubt it is too early to draw any conclusions,
as much will depend on the balance of supply and demand for
the remainder of the year. As to the SBU United Kingdom and North
America, there is no need for being concerned. Bookings are up on
the previous year, costs are under control and profit margins are over-
all on target. We shall make additional investments in new techno-
logy solutions but, force majeure notwithstanding, we expect to kick
off the new millennium with another good year.
It now remains for me to thank all the business managers
and their teams for their great enthusiasm and continuous support
which produced the best-ever results in the history of our SBU.
Peter DiethelmExecutive Vice-President SBU United Kingdom & North America
33S B U U N I T E D K I N G D O M A N D N O R T H A M E R I C A
time allowing us to roll out the successful Kuoni UK concept of tailor-
made holidays at package tour prices.
As in the UK, we expect our US operation to maintain EBITA
margins well above industry norms and to concentrate on niche
markets rather than high-volume mass market tour operating activi-
ties. During the current year we intend to establish a firm and
cost-efficient platform for growth, to make investments into new
distribution channels (including the Internet) and to prepare the
company for the launch of
new products in 2001.
Our hotels in the
Caribbean – Hawksbill in
Antigua and Discovery
Bay in Barbados – are also
consolidated in the SBU
figures. They do not have a
material impact as much
of the business comes from
the Kuoni group compa-
nies and turnover is elimina-
ted on consolidation.
SBU Outlook:
The future looks bright
In October 1999, we re-organised the top management of the
newly enlarged SBU: Sue Biggs, previously Deputy Managing Direc-
tor UK and with Kuoni for 18 years, was promoted to Managing
Director of Kuoni’s UK tour operations. Ian Coghlan, who has been
with Kuoni for 14 years, became CEO of the newly acquired
Intrav. Our strong business philosophy of «quality before quantity
and profit before market share» will therefore live on and the
day-to-day management rests indeed in very capable hands – my
sincere congratulations to Sue and Ian for their well earned
32
S B U E U R O P E
Successful restructuringThe Strategic Business Unit (SBU) was
restructured in the course of the year under
review. It has been renamed SBU Europe
(formerly: International), and the sub-
sidiaries in Asia have been transferred to
SBU Incoming and Asia. Turnover of the
now smaller SBU Europe rose from
CHF 903 million to CHF 1,067 million
(+18.2%). EBITA increased by
CHF 0.3 million to CHF 17.1 million
(1998: CHF 16.8 million; +1.8%).
With the exception of Austria and Denmark, the companies be-
longing to SBU Europe operate in the long-haul segment and were
more or less unaffected by the problems in Kosovo and Turkey
at the beginning of 1999. They recorded a gratifying
volume of bookings in the first three quarters
of the year. Earnings slowed in a sluggish fourth
quarter when the millennium changeover led
to a marked decline in travel activities
in all markets.
35
Marcel HerterExecutive Vice-PresidentSBU Europe
N-U-R Neckermann also operates in some of the new markets
bordering Austria. A 25% increase in Hungarians holidaying with
N-U-R Neckermann was an especially good result. The start of opera-
tions in Slovakia was more difficult, where targets have not been
met thus far. N-U-R Neckermann has also been operational in Slove-
nia since May 1999.
Kuoni Reisen Veranstaltungs AG made further progress in 1999
improving turnover by 12.8% to CHF 44 million (1998: CHF 39 mil-
lion). The most popular destination, accounting for around 23% of
all passengers, was again the USA, followed closely by beach holidays
and city breaks in Europe.
Asia specialist Allround Travel International (ATI) did not
match previous-year turnover of CHF 12 million, which slipped by
–25% to CHF 9 million. Nonetheless, earnings matched the previous
year’s thanks to improved margins.
Retailing: A quantum leap
Reisebüro Kuoni Ges.m.b.H, our retailing organisation in
Austria, developed especially well in 1999, performing a veritable
quantum leap. In spite of a subdued market characterised by a conti-
nuing fall in airline commissions, retailing posted a sharp increase
37S B U E U R O P E
Austria:
Above-average results
In spite of the rather weak market, which was characterised by
a surge in domestic tourism, the ongoing concentration process
in the industry and a fierce battle for market share, our companies in
Austria once again posted results that were above-average.
Tour Operating: A marked improvement
N-U-R Neckermann Reisen AG and Kuoni Reisenveranstal-
tungs AG, in which Kuoni holds a 51% majority stake, posted sharp
improvements in both turnover and income. With turnover jumping
by 13.1% to CHF 294 million (1998: CHF 260 million), N-U-R
Neckermann further boosted its market share. Results were helped by
high flight occupancies and a targeted price and product policy.
Greece was the number one holiday destination, with over 16% addi-
tional visitors, followed by Spain.
36
SBU EuropeChanges in EBITA
CHF m
20
15
10
5
0
–595 96 97 98 99
SBU EuropaChanges in Turnover
CHF m
1000
750
500
250
095 96 97 98 99
Percentage Share of Turnover 1999 SBU Europe
Austria: 34.2%
Spain: 2.8%
Netherlands: 5.5%
Denmark: 14.3%
Italy: 22.2%
France: 21.0%
sition by 25%, with a turnover of CHF 153 million in 1999. The
brand name “Alletiders”, which was launched in autumn 1998 and
has a meaning akin to “super”, has already achieved significant
brand recognition in the market thanks to major investments in the
year under review and enjoys a
top-class reputation.
Annual results would have
been even better had Christmas
and New Year business in Den-
mark not been even more sluggish
than it was in the rest of Europe.
A number of charter seats had to
be sold at last-minute prices. With management and staff continuing to
put in an excellent performance and with the company extremely well
positioned within the competitive landscape, we are very confident for
the future.
France:
Sustained upward trend
Kuoni France again achieved an above-average performance in
1999. In the face of severe competitive pressures in the market, it
not only succeeded in increasing turnover by 9.3% to CHF 224 mil-
lion (1998: CHF 205 million), but once again recorded faster growth
in profit than turnover. Tour Operations performed particularly
well, with our traditional holidays as well as our destination specialist
Scanditours enjoying increasing popularity. In addition, the stream-
lining of structures has boosted productivity still further.
The retailing network in the year under review was augmented by
a branch in Toulouse, but nonetheless underperformed last year’s result,
while alternative sales channels developed at an above-average rate.
Sales in supermarkets enjoyed the most rapid increase. Our customers
have also been able to book travel arrangements with our French subsi-
diary interactively and directly via the Internet since November 1999.
39S B U E U R O P E
in its sales, income and own brand market share. Of the jump in turn-
over of around 40% to CHF 14 million (1998: CHF 10 million),
25% derives from acquisitions, with the other 5% due to organic
growth resulting from the consistent implementation of quality and
process standards.
Including Restplatzbörse and Reisebüro Cosmos Ges.m.b.H.,
which was acquired in the year under review, Kuoni now has its own
distribution network of 35 tourism sales outlets, plus a further 28
(Kuoni Travel Partner) operated by franchisees. The joint venture with
Wüstenroth in the area of alternative distribution has already excee-
ded targets in its first year.
Restplatzbörse Ges.m.b.H., specialised in the sale of last-minute
seat capacities, increased turnover by 21.4% (1999: CHF 3.4 million;
1998: CHF 2.8 million), which was again far better than the overall
market performance and underscored its market leadership in this area.
Denmark:
Down the fast lane with “Super”
Alletiders Rejser A/S, acquired by Kuoni in October 1998,
exceeded the sales target set for the company at the time of the acqui-
38
gains in productivity and accessibility. These measures are being
supplemented by the targeted expansion of the direct sales channel
Net-Vacations. In spite of operating problems, the specialist
journal “Reiserevue” again voted Special Traffic the best long-haul
operator, the best specialist, the best USA operator in Holland,
as well as awarding the company the number 2 accolade for Carib-
bean and Far East tours.
Spain:
A positive trend
The introduction of restructu-
ring measures at Kuoni Spain in
1998 had a positive impact in
the year under review. The ero-
sion in both sales and income was
halted, while market acceptance
and product competence were re-
established. Despite still low turnover growth of just 3.4% to
CHF 30 million (1998: CHF 29 million), earnings clearly improved
due to strict cost management and more systematic marketing.
The newly consolidated structures enabled charter flights to the Mal-
dives to be relaunched, enabling the Spanish subsidiary to recapture
this interesting niche market. Once again, the USA was the lea-
ding holiday destination, with a 32% market share and an entirely
new product range on offer. Asia and the Maldives followed,
with 21% and 18% respectively.
Marcel HerterExecutive Vice-President SBU Europe
41S B U E U R O P E
Italy:
Consistent expansion of tour operations
In 1999, our Italian joint venture Kuoni Gastaldi Tours S.p.A.
successfully pushed ahead with the refocusing of its business units
commenced in 1998. The company reduced the proportion of conso-
lidator (flight only) business as planned but was able to offset this
entirely by increased sales of traditional holiday arrangements. The
turnover remained steady at last year’s level of CHF 237 million
(CHF 239 million; –0.8%) in spite of a sluggish December. Nonethe-
less, results were better than budgeted.
Australia and the US are the company’s most important and
most popular scheduled flight destinations and now account for
over 50% of sales. Kuoni Gastaldi has now established itself as the
market leader in Australian holidays. The range of charter desti-
nations was expanded to include the Dominican Republic and Mexico
which are very popular in the Italian market.
Netherlands:
In a phase of restructuring
Rapid growth in recent years signalled the need for a structu-
ral improvement
at our Dutch sub-
sidiary Special
Traffic and triggered
a complete company
reorganisation in the year
under review. As a result,
turnover improved by just
1.7% from CHF 58 million to CHF 59 million.
The new management has introduced changes including a new
IT system in the front and back offices. These should enable the
company to react more quickly and efficiently to future changes in the
market. The complete redefinition of processes should lead to major
40
Austria:
Benefiting from the acquisition of Cosmos
Our Austrian business travel segment is developing well and is
benefiting from the 1999 acquisition of Reisebüro Cosmos Ges.m.b.H.
Its Business Travel unit has been merged with BTI Austria. The
integration of the two Business Travel units has been smooth and the
positive impact of synergies is
already being felt.
BTI Austria reported 1999
turnover growth of around
36% to CHF 7.1 million (1998:
CHF 5.2 million). Organic
growth excluding the acquisition
was around 7%.
Germany:
BTI Euro Lloyd confirmed as top 3 operator
The integration of the former Kuoni Reisen GmbH and Euro
Lloyd GmbH, acquired in February 1998, is now complete. The
German subsidiary BTI Euro Lloyd GmbH & Co. KG, which was
43S B U B U S I N E S S T R A V E L
A promising launchThe Strategic Business Unit (SBU) Business
Travel, newly created on 1 January 1999,
enjoyed a successful launch. Prior to
this, each country’s business travel opera-
tions had been handled by the relevant
national subsidiary. Despite difficult mar-
ket conditions which have seen airlines
cutting their commissions worldwide, the
new SBU can look back on a good year.
Turnover, which newly comprises only
commissions and service fees from business travel retailing as
a result of the change in turnover reporting (see page 13), exceeded
expectations with a rise of 2.5% from CHF 158 million to
CHF 162 million. EBITA improved by an
outstanding
61.5% to
CHF 15.5 million
(1998: CHF 9.6 million). As part of
its strategic alliance with the global joint
venture Business Travel International, the SBU operates under
the name of BTI, focusing on Central European markets.
42
Reto BacherExecutive Vice-PresidentSBU Business Travel
SBU Business TravelChanges in EBITA
CHF m
20
15
10
5
095 96 97 98 99
SBU Business TravelChanges in Turnover
CHF m
200
150
100
50
095 96 97 98 99
Retailing in mid-1998. The result includes trade fair travel revenues
which have been part of the Business Travel division since 1999
(CHF 2.5 million).
In Switzerland, BTI has reacted to cutbacks in airline commis-
sions by introducing a service fee and modifying agreements with
clients. Corporate clients have generally accepted the introduction of
fees for travel services which they now recognise as value-enhancing.
Consultancy services by Key Account Management, new products
and IT system consultancy generate new income flows that contribute
to our earnings target.
Reto BacherExecutive Vice-President SBU Business Travel
45S B U B U S I N E S S T R A V E L
born out of the merger, has successfully confirmed its position as
top 3 operator in the German business travel market following
the reorganisation and streamlining of its organisational structure.
Nonetheless, some merger-related client defections, which did not take
effect until 1999, could not be fully offset by new client acquisitions.
Turnover slipped from CHF 96.0 million to CHF 87.3 million, a drop
of –9.1%. However, the reorganisation gave EBITA a noticeable
boost. The Leisure and Group
Tours segments belonging to the
parent company as well as the
subsidiaries reported satisfactory
growth.
With the airlines cutting
their commissions further, the
German business travel market
remains difficult. BTI Euro Lloyd
is responding to the challenges ahead with the consistent introduction
of service fees and a new strategic business focus.
Hungary:
Steady growth
BTI Hungary (Kuoni Utazás Kft.) reported an increase in turn-
over from CHF 0.4 million last year to CHF 0.5 million in 1999.
The remarkable 25% jump is attributable to organic growth. BTI
Hungary improved performance and outpaced overall growth in
the Hungarian market.
Switzerland:
Market leadership further reinforced
1999 was a successful year for BTI Switzerland. Turnover
forged ahead by around 20%, jumping from CHF 56.0 million to
CHF 67.5 million. This was the result of both organic growth
and shifts deriving from the separating of Leisure and Business Travel
44
S B U I N C O M I N G A N D A S I A
Major improvementsOur subsidiaries in India and Hong Kong,
Kuoni Travel (India) Ltd. and P&O
Travel Ltd., have been migrated to form
part of the Strategic Business Unit
(SBU) Incoming and Asia in the wake
of the reorganisation of the former
SBU International (now SBU Europe).
The expanded SBU has fundamen-
tally developed very positively, although
trends in the different national organi-
sations were mixed. Total turnover jumped 15% to CHF 451 mil-
lion (1998: CHF 392 million) while EBITA underlined the
positive trend with an impressive contribution of CHF 5.5 million,
equivalent to some 160% increase on the previous year (CHF 2.1
million). This is mainly due to the recovery of the Far Eastern mar-
kets following their recent economic troubles.
Incoming Services Europe:
The turnaround resumes
Our core business, Incoming Services Europe, is benefiting from
the fact that its source markets in the Far East such as Taiwan, Korea
and especially Thailand have now more or less returned to the level of
economic prosperity they were enjoying prior to the Asia crisis of
1997. Helped in addition by an excellent performance from manage-
ment and staff in Japan, turnover grew 19.2% to CHF 329 million
(1998: CHF 276 million).
47
Ibrahim AtallahSenior Vice-President SBU Incoming and Asia
Kenya as a holiday destination. The positive trend is continuing;
the company has been restored to health and we are optimistic for the
future.
Asia:
Hong Kong market remains sluggish
Hong Kong is still burdened by the economic woes wrought
by the Asia crisis in 1997 and the return of the territory to Chinese
rule. Consumer confidence remains muted, and our joint venture
P&O Travel failed to meet our expectations. Turnover decreased by
–11.3% from CHF 57.3 million to CHF 50.8 million. The competitive
environment is very fierce with participants fighting for a share of
a smaller market, and this is exerting extreme pressure on margins.
In contrast, P&O Singapore achieved a satisfactory result.
India:
Trend confirmed
Once again in the year under review, Kuoni Travel (India) Ltd.
recorded an excellent result. Turnover jumped by an impressive
29.5% to CHF 40.4 million (1998: CHF 31.2 million), thereby fulfil-
ling our high expectations. The company was able to build on its
position as market leader for guided tours overseas. The positive gene-
ral economic development in India also underscores our belief that
we made an excellent investment when we acquired Kuoni Travel
India in 1996.
Ibrahim AtallahSenior Vice-President SBU Incoming and Asia
49S B U I N C O M I N G A N D A S I A
Despite fierce competition in Japan, which remains our most
important source market for holidays to Europe, growth in both
sales and margins was above-average. Our US source market was im-
pacted negatively by the war in Kosovo in the first half of 1999, but
recovered in the second half to produce a satisfactory full-year result.
The turnaround in the division, which began in 1995 and
suffered a temporary setback in 1997 due to the Asia crisis, has now
resumed. We are very confident about business in 2000, with the
brighter economic outlook and much improved consumer confidence
having spread across the entire region including Japan.
Greece:
Successful second semester
Both of our Incoming subsidiaries in Greece, Hellenic Tours
and Hellenic Island Services, surpassed our expectations in 1999.
The first six months were very difficult for Greece as a holiday desti-
nation given the war in Kosovo, but losses were quickly offset
from July onwards. By year-end, turnover slightly exceeded
the previous-year level of CHF 26 million. A parallel
improvement in margins meant Greece achieved a new
record result.
Kenya:
Moving ahead
Our East African subsidiary
Private Safaris (East Africa) Ltd.,
also an incoming operator and part
of the Kuoni Group since May
1998 saw a doubling of turnover
from CHF 2.7 million to
CHF 5.0 million in 1999.
This underscores the
renewed attractiveness of
48
I N F O R M A T I O N T E C H N O L O G Y
Exploiting synergiesInformation technology (IT) is becoming
increasingly important as a supporting
instrument for achieving the Group’s busi-
ness objectives. In line with this growing
significance, IT was made into a separate
Group unit in October 1999. This decision
is a recognition of the fact that IT activi-
ties across the Group are becoming more
and more challenging, complex and costly,
and therefore need to be coordinated at
Group level.
Our motivation for grouping IT resources together at Group
level is to achieve the following aims:
• Improved co-ordination of the various IT projects within the Group
• Increased global use of synergy potential
• Optimisation of costs
• Concerted use of IT, optimally geared to company strategy, to
achieve Group aims and to secure Kuoni’s market position by taking
early advantage of forward-looking IT initiatives.
A large number of IT activities were undertaken in the year
under review. Of these, three
major Group-wide projects
stand out.
51
Konrad ItenSenior Vice-President Chief Information Officer
for future development. The members of this
team have been relieved of day-to-day
responsibilities so that they can concen-
trate fully on the task in hand. At coun-
try level meanwhile, our subsidiaries
are leading the field in a number of
different markets, pushing ahead
with the development of their Inter-
net sites. At both levels, the aim also
is to set us apart from the competi-
tion in the global electronic market-
place, and to offer customer-oriented,
clearly positioned solutions with uniform
business processes.
It is a tribute to the tireless commitment
of the entire unit that we were able to success-
fully launch a large number of projects in the year under review.
I should like to express my gratitude to all involved. I am motivated
and confident that we will achieve the ambitious aims we have set
ourselves for the year 2000.
Konrad ItenSenior Vice-President
Chief Information Officer
53I N F O R M A T I O N T E C H N O L O G Y
Y2K: Successful millennium changeover
In order to ensure that the millennium changeover passed off
without a hitch, we launched our Y2K project way back in 1997.
Our main aim was to spend as much as was necessary, but as little as
possible. In this we were successful, and Kuoni began the year 2000
without any problems of any kind. One valuable side-effect of
the project is that it has allowed us to compile a comprehensive and
detailed IT inventory at Group level, which will continue to be ex-
tremely useful in the future.
ACE: Ultra-modern back-office system
The aim of the ACE project is to replace the mid-office appli-
cation OPAL, which is used in our branch offices in Switzerland and
Austria to process customer orders “behind the scenes”. In fact,
though, the project involves much more than simply replacing an out-
dated distribution program: ACE, which we have been gradually
introducing since last year, provides our travel agencies with an ultra-
modern communications infrastructure that allows multiple use,
leading to a further substantial optimisation of procedures.
E-commerce: Fast-growing sales channel
E-commerce is a fast-growing sector of the future, and for the
travel industry it represents a special challenge. The Kuoni Group,
aware of the economic potential that is released by the combination of
information technology and telecommunications, is active on a
number of fronts. At Group level, a core team is developing scenarios
52
55T H E K U O N I N E T W O R K I N E U R O P E54
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59T H E K U O N I N E T W O R K I N S W I T Z E R L A N D58
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O U R M A R K E T
Top ten keep on growingThe drive for growth of Europe’s top ten travel companies continues unabated. Following major in-creases in turnover in 1998, the European “giants”continued to grow in the year under review – albeit at a less rapid rate. For the time being the focus is on consolidating new acquisitions.
Last year saw new records in Europe’s two biggest tourism
markets, Germany and the UK, with further increases in both sales
volumes and passenger numbers registered by the leading ope-
rators. Britain’s Thomson Travel and Airtours as well as Germany’s
TUI Group and C&N are fully vertically inte-
grated travel groups: As well as being
tour operators, they own travel agencies,
hotels, airplanes, incoming agencies and,
in some cases, ships. Whereas British
operators are particularly keen to expand
their transport portfolios, their German
counterparts continue primarily to boost
their ownership of hotels. The strategies
are nonetheless identical: both aim to
strengthen control over and increase the number of revenue streams,
enabling the vertically integrated company to enhance earning
power and exert a greater influence on quality throughout the entire
value chain. However, a strategy of this nature does conceal an in-
creased level of risk. If bookings to a certain holiday destination sud-
denly collapse – as happened last year in Turkey – empty hotels
can have a big negative impact on profits.
Two companies were in the spotlight in 1999 as the European
tourism sector continued to consolidate: the UK’s First Choice and
61
For the first time in 2000, TUI turn-
over will also include Thomas Cook,
boosting the total to DEM 20 billion
(CHF 16.5 billion). TUI, also known
in Germany as the “red camp”, has
further enhanced its position with the
takeover of L’Tur, a last-minute
operator, and last year grew faster
than the tourism market as a whole.
Airtours and C&N follow
in second and third place in the Euro-
pean top ten. 1999 turnover at
Airtours exceeded CHF 9.7 billion,
with profits amounting to CHF 390
million1) for the past year. The UK
tour operator was in takeover mood
in 1999. Given its market presence
in Scandinavia, Germany and the US and its numerous acquisitions
last year, Airtours records a big jump in profit.
The German C&N is 50% owned by Lufthansa and 50%
by Karstadt/Quelle. Last year, turnover of the so-called “yellow camp”
grew to CHF 7.5 billion. The main focus of C&N’s activities,
besides its Condor airline, is its tour operations which it markets
through the Neckermann, Terramar, Aldiana, Air Marin, Kreutzer,
Bucher and Fischer brands. C&N owns 1,300 travel agencies and
238 hotels and club facilities.
1999 was less successful at Thomson Travel. A new manage-
ment team was installed following a drop in 1999 profits1) from
CHF 318 million to CHF 194 million. Its first task is to improve pro-
fitability in the company’s core home market, the UK, before em-
barking on any new foreign takeover bids. Thomson owns Britannia
Airways, the Lunn Poly chain of travel agents, Fritidsresor – the
number two operator in Scandinavia, and recently acquired Finnmat-
63O U R M A R K E T
Germany’s DER, a subsidiary of Deutsche Bahn AG. The takeover
battle between the Kuoni Group and Airtours for First Choice domi-
nated the first half of the year. After the merger between First
Choice and Kuoni failed in July due to opposition from First Choice
shareholders, although the management of both companies was in
favour, the hostile attempt by Airtours to take over First Choice was
rejected by the EU Competition Authorities in September. In the
bidding process for DER, Airtours also came second, with Rewe, the
German trading and tourism group, prevailing.
No other important German bulk tour operators is left for
sale, and TUI and C&N jointly command some 50% of the
German tour operations market. In the UK market, the cards have
been dealt as well. Britain’s big four tour operators, Thomson,
Airtours, First Choice and Thomas Cook (TUI Group), control over
two-thirds of the tour operations market as well as three-quarters
of retailing through their own travel agents. In contrast, the French
market is much less consolidated. The overall foreign tourism
market is only one quarter the size of Germany’s, and different rules
apply. The French tend to make their own independent
travel arrangements, giving French bulk tour opera-
tors a lot less leverage. Club Méditerranée
and Nouvelles Frontières still lead the market.
Following a change of name, Europe’s
number one operator is now called TUI
Group (formerly HTU or Hapag
Touristik Union). The TUI Group
is owned by the German group
Preussag. Of the latter’s
DEM 32 billion turnover,
TUI contributes 44%, and
CHF 493 million to operating
profit1). The TUI Group owns over
3,600 travel agencies across Europe.
62
0 5 10 15
TUI Group
Airtours
C&N
ThomsonTravel
Kuoni
Rewe
LTU
First Choice
NouvellesFrontières
ClubMéditerranée
in CHF billion.
* Because the European travel groups do not
use the same accounting principles, sales figu-
res are not always directly comparable.
1999 turnover in CHF of the topten European travel companies*
O U R M A R K E T
kat of Finland. Thomson’s 1999 turnover exceeds CHF 6 billion.
Numbers 5 to 8 in the European league table have a turnover
of CHF 3 to 4 billion each: they are the Kuoni Group, LTU, Rewe
and First Choice. The Kuoni Group achieved a record turnover
of CHF 3.5 billion2). With acquisitions in Scandinavia (Apollo, Alle-
tiders, Dane Tours, Kisbye Rejser), the USA (Intrav), Holland
(Inter Holland Travel), Austria (Cosmos) as well as the latest expan-
sion in the merging market India (SITA World Travel), Kuoni has
underscored its leading position among European travel companies
since the beginning of 1999. Germany’s LTU Group, in which
SAir Group has a 49.9% stake, staged a recovery after two years of
plunging profits. Meanwhile, Rewe Touristik has become another
big player in the German market: the trading company, which already
owns the tour operators ITS and Atlas, boosted its tourism turnover
through the acquisition of DER to over CHF 3 billion. First Choice,
with operations in the UK, Ireland and Canada, also reported a turn-
over exceeding CHF 3 billion in 1999.
The two French tour operators Nouvelles Frontières and Club
Méditerranée fill slots nine and ten in the European top ten.
1) Profit figures cannot be directly compared due to the different tax regimes in individual countries.
2) Group turnover has been calculated on the following new basis: commissions from the sale of leisure and business travel services and tour operating turnover.
64 O U R C O M P E T E N C I E S
Leisure TravelLeisure travel, our core activity, is the strongest pillarof our business operations, contributing 85% togroup turnover. It consists of Tour Operating, whichcreates the holiday “product”, and Retailing whichsells that product professionally.
Producing, organising and
retailing holidays are our core com-
petencies. Tour Operating selects
the most attractive destinations, con-
tracts with hotels and other service
providers such as transportation
companies, buys charter quotas,
identifies competent local agents and
organises transfers and excursions with them. At major destinations,
we also establish our own local presence. In the mid-to-upper
price segment, we sell leisure holidays under the Kuoni brand in our
home market of Switzerland; but the Kuoni brand also has an
excellent name for quality in other countries like the United Kingdom
and France.
In Switzerland, the Group also operates under the budget brand
Helvetic Tours and offers a number of specialist brands in a variety
of niche markets. In addition, we own Edelweiss Air, our own Swiss
charter airline. The subsidiaries both in Europe and overseas use a
similarly differentiated system of tailor-made branding.
In Retailing, it is our business to sell our holiday products from
a professional platform. In Switzerland, for example, we have
our own network of 120 sales outlets. Most of our subsidiaries are
also working intensively on the development of alternative distri-
bution channels such as the Internet, digital TV and direct sales via
call centres.
65
IncomingWhether it’s a snowmobile safari in Lapland, a gour-met trip back to Caesar’s ancient Rome, or a heli-copter flight over the Loire valley – the wide range ofservices offered by Incoming is tailor-made. Foreign travel agencies form the bulk of Incoming’scustomers.
Incoming offers foreign tour operators a professional orga-
nising capability for overland holiday arrangements for both
groups and individuals. While our subsidiaries in Greece and Kenya
work mainly with European customers, the focus of our 476 staff
at Incoming Services Europe is on servicing the needs of customers in
the US, Japan, India and other Asian countries on their travels in
Europe. The eleven European “Destination Management Companies”
also work for travel agencies and their customers from South
America, the Middle East and Eastern Europe.
The classic tour is not the only product in demand. Customer
requirements also include special interest and incentive trips, semi-
nars, congresses and educational tours. For example, a Japanese tour
group might be interested in seeing how genuine Swiss cheese is
made or how a real Austrian apple strudel is baked.
It may be old hat, but romantic chalets, stunning glacier land-
scapes and a trip to the Jungfraujoch at the Top of Europe are still
the highspots of a dream holiday to Europe for most foreign tourists.
67O U R C O M P E T E N C I E S
Business TravelThe days are long gone when a business travel spe-cialist was just there to offer traditional travel adviceand provide the travel documents. What’s neededtoday is the ability to manage the business travel bud-get of our corporate customers. This means not justkeeping costs under control, but also reducing them.
“Travel and Entertainment” is frequently one of the biggest
cost factors in a company’s spending budget. And its importance is
growing as the volume of travel increases on the back of accelerating
globalisation in the world eco-
nomy and the greater need for
global communication in multi-
national organisations.
The role of a business travel
specialist is therefore no longer
just the efficient organisation of
clients’ business travel activities,
but also primarily the attainment of a substantial reduction in
their travel costs. This can be achieved at three levels: cost-effective
travel expenditure (optimising purchasing), structural costs (inhouse
units or outsourcing to travel agents) and process costs (optimi-
sing internal processes in the organisation). Here, the new media such
as the Internet and system-based solutions like online booking systems
are playing an increasingly significant role.
Under the BTI brandname, Kuoni’s business travel unit offers
tailored solutions to the two major client segments: small and
medium-sized enterprises (SMEs) and major national and multina-
tional groups.
66
Zanzibar, the lack of the necessary infrastructure is generally one of
the main hurdles to the development of the tourist industry. For
a travel destination to become a charter destination, there has to be
accommodation available that
meets a certain standard. There is
also a need for airports that can
handle larger planes, as well as ade-
quate roads and transportation.
As well as getting an offer from
the charter airline Balair/CTA for
a Zurich–Mombasa–Zanzibar flight,
information had to be gathered on flying rights, runway lengths,
fuel availability and complementary tourist infrastructure. A suitable
agency also had to be signed up. Obtaining sufficient hotel capacity
proved less than easy. Moreover, other European tour operators had
begun to show a major interest in the new tourist destination.
Finally, the island government also wanted to meet the Swiss
tour operator. The Zanzibar president was keen to discuss the
impact of tourism on his mainly Moslem population. He
especially sought to ensure that tourist behaviour would
respect local habits and customs. Private Safaris believes
it to be very important that the socio-cultural aspects
of a new holiday destination be handled with care
and respect, giving tourism the chance to develop
a positive image.
Our careful preparations have borne
fruit. In the meantime, planes from Italy, Ger-
many and Kenya are landing in Zanzibar too.
69O U R C O M P E T E N C I E S
Pioneer in the Indian OceanPrivate Safaris, a subsidiary of Kuoni Switzerland, hasentered the charter market for holidays to Zanzibar,becoming one of the first European tour operators tocover this corner of Africa. It needs a lot more tolaunch a new destination successfully than negotiatingcontracts for plane seats, hotel beds and local servi-ces: a large measure of understanding of the customsand geography of the newly-featured location is aprerequisite.
Once the retreat of adventurous backpackers seeking the ulti-
mate experience, Zanzibar has moved up-market to become an
exclusive destination for today’s luxury-seeking traveller. The inclu-
sion of charter flights
to Zanzibar in the
Private Safaris
programme was preceded
by intensive discussions.
Seemingly endless beaches, turquoise
lagoons and tropical abundance make it an
island ideally suited as a complement to the range
of safaris offered on the Tanzanian mainland. The key
argument for including Zanzibar in the range was the realisation
that customers were looking for a new destination with major ap-
peal, in addition to Kenya. The East Africa specialist Private Safaris
wanted to offer something new with Zanzibar, the island with a
fairy-tale ring to its name.
In a short time a whole bundle of issues had been clarified.
Particularly in the less developed regions of the world, such as
68
“Respect for
local customs
must be
ensured.”
company is even higher, reaching 66%. In recent years, we have seen
a marked increase in the number of women entering middle manage-
ment at Kuoni. Today, that figure has risen to around 50% of all our
management positions worldwide.
We are equally proud of the fact that, in our home market
of Switzerland, the average length of service of our employees is eight
years – a particularly fine achievement given the low average age
of our workforce. There are a number of reasons for this: our flexible
staffing policy; the good career and development opportunities
offered within the Group; targeted, ongoing training; and
last but not least, our
“young” working environ-
ment coupled with an open
management culture that
is based on management by
objectives. The forward-
looking options we offer in
terms of working hours, including jobsharing and freelance models,
similarly demonstrate our flexible and open working attitudes.
11% of our staff are employed on a part-time basis. We can also offer
staff members attractive opportunities to work abroad since we
have offices in 27 different countries. Postings may form part of an
internship or may be for longer periods.
Our staff need to satisfy the standards of very critical custo-
mers in a fast-moving industry. They have to be highly independent,
self-reliant and quality-conscious. Looking ahead, Kuoni’s success
will continue to be dependent on the qualities of its staff. These quali-
ties of entrepreneurship, readiness to accept change and pleasure in
giving impeccable customer service will remain our mainstays.
71O U R S T A F F
Young and enterprising The Kuoni Group is a global operator. Despite beingcentrally organised, the company has a flexibleapproach that seeks to take account of differences incultures and market requirements. The Group’s personnel policy bears the stamp of the individualbusiness units and their particular location. Across the Group as a whole and at all levels of theorganisation, an entrepreneurial spirit and inno-vation are especially encouraged.
At the end of 1999, the Kuoni Group employed 6,552 staff
worldwide, representing an increase of 6.5% over the previous
year. This has resulted from the continuing growth of our business
and our expansion into new markets.
A factor that characterises the tourism industry worldwide is
the above-average number of staff in the 20-to-35-year-old age group.
Kuoni is no exception here, with 4,048 or 62% of our workforce
belonging to this category. The proportion of female workers in the
70
we discuss next year’s prices, negotiate room quotas and their expiry
dates, terms of payment and attractive extras – exclusively for Kuoni.
We analyse the state of current bookings and discuss possibilities
for improvement. On a tour of the hotel, I finally verify that every-
thing matches the details in our catalogue. In hotels which are new to
our programme I also ask to see the smallest room and the worst-
situated room. ‘Health and
Safety’ checks are mandatory,
meaning I monitor the emer-
gency exits, the safety pro-
visions and the written instruc-
tions for guests. Complaints,
however, are rare in the USA
since this is a country with
very strict standards. 40 minu-
tes later I am at the next hotel – four more to come before midday.
After a two-hour working lunch comes an afternoon of discussions at
another four hotels. That evening a hotel owner has invited me to
dinner. Meetings like this are important as we get to know each other
better and form a more solid basis for future negotiations.
To cut a long story short, my schedule repeats itself over the
next four days in which I visit a total of 40 hotels. Six of them are new.
One hotel manager invites me to a musical – which is ideal, as culture
does not get much of a look-in during the daytime. Every evening I get
out my laptop and record the results of the day’s endeavours.
My week ends with a flying visit to the Pow Wow in Miami.
After a series of social events with the service providers plus internal
group meetings, the fair itself takes place over a three-day period.
The fair’s organiser has fixed all the meetings. A gong sounds every 20
minutes telling you to move on to the next one. Wednesday evening
sees the official close which coincides with the end of my purchasing
trip. The next stage, the drawing-up of the contracts, represents a
fresh challenge.”
73O U R S T A F F
Working in New YorkSimone Balmer is one of around 40 purchasers for the Kuoni Group. She has been responsible for the product range offered by Kuoni Switzerland in theEastern USA for the past four years. Her workingyear can be split into four distinct periods. These startwith overall planning, followed by purchasing and the drawing-up of contracts, and end with catalogueproduction. Five weeks of her year are spent abroad and include visits to trade fairs like Pow Wowand ITB, where her negotiating skills come into play. Simone Balmer takes up the story herself as shedescribes what purchasing actually entails, using the example of a trip to New York City.
“I arrive at Newark Airport where our limousine partner is alrea-
dy waiting to take me to Manhattan. I take advantage of the oppor-
tunity to check the model of car, driver, service and punctuality. Once in
my hotel room it is out with my appointments diary for a review of
tomorrow’s schedule. As my first appointment is not until 9 a.m.,
I decide to set off on foot at 8.30 a.m. to check out for news en route.
On the way, I discover an interesting hotel in a prime location
and pick up a brochure. If possible, I will make an appointment
for Pow Wow, a fair at which around 2,600 US service providers and
international travel companies gather
annually. On the dot of nine,
I meet the sales mana-
ger of the first
hotel on my list.
Over breakfast,
72
“Purchasing trips
give us the chance
to check out
our featured hotels
first hand.”
As a travel group the Kuoni Group has high standards to meet
since its Corporate Governance must take account of the classic
stakeholders such as employees, customers and shareholders, as well
as its service providers around the world and the people in its des-
tination countries. This transforms our Corporate Governance into a
challenge spanning the entire globe.
At Kuoni, Corporate Governance is more than a question
of structures, the composition of Executive and Corporate Bodies and
the definition of tasks and responsibilities. We also understand it
as a philosophy that must be lived 24 hours a day. Thus, the Group
meets its responsibilities to its stakeholders while at the same time
conducting its day-to-day business activities.
We believe that this can be best achieved when the company’s
own view of its mission is aligned with the interests of all its
stakeholders. A well-managed company understands the importance
of attracting competent and professional people, providing them
with the skills to carry out their particular tasks and of keeping them
motivated. Skilled and satisfied employees perform well and win
loyal customers for the company. And loyal customers are the engine
that drives strong earnings momentum. This benefits the share-
holders who ultimately decide – directly or indirectly – on the compo-
sition of the Board of Directors and the management. The circle is
thus complete.
A company can only remain successful in the long-term if it
is able to create value for all its stakeholders. The active implementa-
tion of this Corporate Governance philosophy forms an integral
part of the management
tasks performed by our
Board of Directors
and Executive Board.
75C O R P O R A T E G O V E R N A N C E
Creating value for allIn recent years, the frequency, extent and suddennessof change have all increased and the pace is set to shift up another gear. Company managements areforced to remain constantly vigilant. They must evaluate new situations without delay and take in-stant action. The parameters for these decisions are laid out in the principles of Corporate Governance.
Corporate Governance structures the division of powers be-
tween the different entities governing the company and provides
guidelines on how to handle the interests of its various stakeholders.
The following are examples from the Kuoni organisation:
• The Board of Directors is composed of independent persons.
• The Group accounts are drawn up in accordance with International
Accounting Standards to ensure a high level of transparency.
• The Group seeks to optimise its accounting processes continuously.
• A professional risk management is in place to deal with the risks to
which the company and its stakeholders are exposed.
• Kuoni attaches great value to competent and pro-active communica-
tion with both internal and external stakeholders.
• Group strategy is subjected to regular review.
• The Group’s planning and budgeting systems use annual budgets
which require the approval of the Board of Directors.
• Controlling and treasury functions are continually optimised to
ensure high efficiency.
• The total emoluments of the Executive Board and Board of Direc-
tors are disclosed.
• Employees are offered continuous training and education.
• Care for the environment is part of the company’s mission statement.
74
E C O L O G Y
Think global, act localKuoni is committed to a policy of respect for the environment. We believe that the travel business can only flourish in the long term if the environmentremains intact. The responsible use of natural resources needs to be reflected in specific measuresboth within the Kuoni organisation and its sub-sidiaries as well as at our service providers.
Tourism is only sustainable in the long term if we treat our
natural resources with due care and respect. We demonstrate
our commitment to this belief in our group mission statement:
“We support environmentally friendly ideas and solutions”.
Global tasks can only be solved by a global effort, and we
regard international cooperation in this field as particularly
significant. This is why Kuoni is a member of Green Globe 21. The
chairman of our Board of Directors, Daniel Affolter, also sits on
Green Globe 21’s Directors’ Board. Green Globe 21 was founded in
1994 by the World Travel & Tourism Council (WTTC). With its
head office in Cambridge, UK, it is an organisation promoting the
ideas of environmental management and awareness. Its agenda
is based on Agenda 21 of the 1992 Rio environmental summit and
promotes the idea of sustainable tourism worldwide. Currently,
there are 600 members of Green Globe 21 in 100 different countries.
The organisation is an international leader in
its field and works together with environ-
mental experts and the tourism industry to
77
Air – the airline of Kuoni Reisen AG –
has given preference to environmentally
friendly technologies with its in-
vestment in a modern fleet of
aircraft that uses less fuel, emits
fewer harmful substances and gene-
rates less noise. Three new Airbus A320-200 were purchased in 1998,
and another of the latest generation of aircraft, the new Airbus
330-200, will join the fleet in November 2000 for use on long-haul
routes. Nearer to home, we are applying our policy of responsible
natural resource usage to the ecologically sound renovation of our
head office in Zurich. Environmentally friendly management of
internal resources includes the introduction of energy-saving lighting,
water regulators and insulating glass as well as the reduction of
the level of air conditioning; waste is separated, paper and office
machinery are recycled.
79E C O L O G Y
create global standards and introduce certification that will allow
travellers worldwide to consciously choose holidays that respect the
environment.
In its Swiss home market, Kuoni Reisen AG is one of the signa-
tories of the Swiss Association of Travel Agencies’ Crete Declaration
(see box). Together with the Asso-
ciation as well as environmental
and tourism experts, Kuoni and
other Swiss travel companies
aim at producing practical and
straightforward standards
that promote the objectives of
the declaration. Service providers meeting these standards regarding
refuse disposal, water or energy supplies will in future be certifi-
cated for their efforts. The regional authorities in the targeted areas
will also be increasingly encouraged to adopt environmentally
friendly methods. To lend more weight to the environmental manage-
ment issue, Kuoni Switzerland has created a new post for ecology
and environment.
For some time now, we have been pursuing a policy of
environmentally conscious management
within the Group and its subsidiaries
worldwide. Edelweiss
78
Crete Declaration
“As a leading tour operator in the Swiss Association of Travel Agents, we are
committed to ecological and sustainable tourism.” We encourage our hotels to devote
attention to:
• water, energy and waste management
• ecological construction and purchasing policies
• integration of local activities and products
We support these efforts by:
• participating in the organisation of specialist environment seminars for hotel employees
and our own staff
• rewarding activities that conform to ecological standards
• participating in the collection and evaluation of data and in setting quality standards
for environmentally friendly tourism
“Global problems
require
global solutions.”
Committed tocustomer safetyIn 1998 the Kuoni Group created a group competencecentre for Health and Safety. The co-ordinators ofthis centre have the task of continuously monitoringthe health and safety standards of our services worldwide. They are also responsible for creating acomprehensive database with information on the current standard of our own range of products andservices as well as those of our business partners.
Kuoni has always demanded the very highest safety standards
for its customers as an elementary factor in our level of service. In
the interests of those who travel with Kuoni we attach great impor-
tance to cooperation with service providers and governments and to
the development of systems for the evaluation of risks and priorities.
The Kuoni Group has developed its
own system for the measurement
of health and safety standards
at the accommodation
it offers. Its principal
aim is to raise health
and safety standards
worldwide and to
eliminate any deficien-
cies by seeking to
find solutions with our
service providers. The
system allows us to measure
and monitor all the accommodation we
offer – from a 17-storey hotel to
an exclusive bungalow complex,
small guest house or the no-
frills overnight facilities offered
on a safari adventure holiday.
Kuoni is also an active part-
ner in negotiations with govern-
ment representatives around the
world. The focus of these dis-
cussions is to bring the status of
health and safety legislation
in Europe to foreign government
attention. Countries whose
standards in this area fall below
those in Europe are accorded
priority.
For example, discussions
were held in 1999 with the Minister of Transport for the Maldives
over the safety of Dhoni boats – the traditional means of transport
between the Maldive islands – with the result that improvements were
made. Additional discussions with the Minister for Tourism are
planned to consider further measures for improvement and to ensure
that standards keep abreast of changes in requirements.
Kuoni is a prime mover for positive change in this area. At
a recent meeting, the Cuban Minister of Health made an enthusiastic
report about the introduction into Cuba of a system for the regular
control of kitchen and food hygiene. Health and safety inspections by
Kuoni and other tour operators in this area were a decisive factor in
this development. At the same time changes were made in the training
system to comply with European standards.
81H E A L T H A N D S A F E T Y80
Action Plan for 2000
• Continued evaluation of risks
and priorities by country and
service provider
• Cooperation with govern-
ment representatives world-
wide with the aim of im-
proving standards
• Development of a global
health and safety system for
the entire tourism industry
• Drawing up of safety
guidelines for our service
providers
• Monitoring adherence to
the above
S O C I E T Y
At home in the SOS Children’s VillageFor the last three years, both the Kuoni Group and its national subsidiaries as well as the Kuoni and Hu-gentobler Foundation have been supporting the work of the SOS Children’s Village, the world’s largestprivate humanitarian organisation designed to helpchildren. Naturally we were keen to take a closer lookat the very first village where it all started 50 years ago.
February 2000 in Imst, Austria: Sporting a huge sunny smile,
two-year-old Janine greets us with a somersault. Before Janine was
even born, her natural mother was
beset with problems and it
was clear that she would be
unable to cope with a baby
too. Nowadays, Janine is
delighted to receive visi-
tors. And of visitors
there is never a shor-
tage! For Janine and
her brothers and sisters
– Philipp (5), René (7),
Silvia (12) and Ulrich
(14) – live in the Imst
Children’s Village in the
Austrian Tyrol where Her-
mann Gmeiner founded the
very first SOS Children’s
Home some 50 years ago.
83
crane driver, all of whom warmly recall their SOS
Village childhood.
The diversity of peoples, natural lands-
capes and cultures in the world is the founda-
tion on which our business as a travel agency
is built. We would therefore like to give some-
thing back to our travel destinations in the form
of our support for the SOS Children’s Village.
The words of its founder Hermann Gmei-
ner are as valid today as when he uttered
them: “The good that is done in the world
only happens when people do a little bit
more than they really have to.”
85S O C I E T Y
“Haus Frieden” or “Home of Peace” not only offered war orphans a
roof over their heads but also gave them a mother and a whole new
family of brothers and sisters. Soon more houses were added. Today’s
village comprises 15 buildings, housing 13 families at present.
Imst is just one of 400 SOS Children’s Villages situated in 131
countries across the globe. Wherever they are, whatever their differen-
ces in culture and religion, all SOS Village Children are brought up
according to the same four principles: Every child has a mother, a set
of brothers and sisters, a house and a village. Local women are spe-
cially “recruited” in each country and are carefully trained for their
role as SOS mother. Most of the villages have their own kindergarten
which other children from the region can also attend. In Europe,
children from the SOS Children’s Villages all visit public schools. In
this way, they are in contact with
people from outside the village and
can better cope with the “real” world
in later life. In countries with poor
educational systems, there are special
SOS-Hermann-Gmeiner schools. At
present, 153 exist across the globe.
Children from outside the SOS Villa-
ges may also attend these schools.
Normally speaking, it would
now be mealtime at the Imst Child-
ren’s Village. But our visit has inter-
rupted the schedule. Philipp and René
are both hungry and are making
it quite clear that it’s about time we
were leaving. A few strict words from their SOS Children’s Village
mother Christine Andergasser make little difference. The five children
Christine is bringing up at present are already her second generation.
Her first generation has already grown up and Christine remains
in close contact with them all. They include a lawyer, a nurse and a
84
Our commitment to the SOS Children's Village
July 97 Contract signed
July 97 An SOS ambassador is appointed at each of our
group companies
December 97 The Kuoni Home in Los Mina in the Dominican
Republic is opened
January 98 An information brochure is produced in eight
different languages
August 98 A joint SOS Children’s Village and Kuoni crib is
exhibited at the 50th Anniversary of Zurich Airport
December 98 Christmas tombola at Kuoni head office,
with proceeds going to the SOS Children’s Village
April 99 The Kuoni Home in Umtata, South Africa is opened
July 99 Kuoni supports SOS Children’s Village 50th
Anniversary celebrations
October 99 Assistance in the making of an SOS film,
shown on all Swissair scheduled flights worldwide
December 99 Christmas tombola at Kuoni head office,
with proceeds going to the SOS Children’s Village
June 00 The Kuoni Home in Gopalpur, India is opened
E X E C U T I V E A N D C O R P O R A T E B O D I E S
Board of Directors of Kuoni Travel Holding Ltd.
Daniel Affolter, Chairman
Lawyer, Erlenbach
Heinz Müller, Vice-President Term expires 2002
Former Executive
Vice-President UBS, Zurich
Claudia Depuoz Term expires 2002
Senior Vice-President, UTO-
Insurance Companies, Zurich
Hans Eisenring Term expires 2002
dipl. Ing. ETH, Zollikofen
Prof. Gilbert Probst Term expires 2002
Professor at the University
of Geneva, Hermance
Dr. iur. Roland Rasi Term expires 2001
Lawyer and consultant, Basel
87
Born 1954
Studied law (lic.iur.) at Zurich University
1984 Qualified as lawyer
Since 1988, partner in the law practice“Bernhard, Affolter und Partner” in Uster
1990 Elected to the Board of Directors ofKuoni Reisen AG, Zurich
1995 Chairman of the Board of Directors ofKuoni Travel Holding Ltd., Zurich
Since 1997 member of the ExecutiveCommittee of the World Travel and TourismCouncil (WTTC)
1999 International Advisory Council forTourism (IACT), Singapore
Term expires 2000
E X E C U T I V E A N D C O R P O R A T E B O D I E S88
Hans Lerch
President of the Executive
Board and Chief Executive
Officer
Born 1950
Joined Kuoni in 1970 as Manager Incoming
1972–85 Management functions in Tokyo,Hong Kong and Singapore, ultimately as Regional Manager for the Far East
1986–89 Vice-President Incoming, Kuoni Reisen AG
1989–95 Vice-President Tour Operating,Kuoni Reisen AG
1995 Executive Vice-President SBU Incoming, Kuoni Travel Holding Ltd.
1996 Executive Vice-President SBU Switzerland and Incoming, Kuoni Travel Holding Ltd.
In present function since 1999
89
Peter Diethelm
Executive Vice-President
Strategic Business Unit
United Kingdom and
North America
Marcel Herter
Executive Vice-President
Strategic Business Unit Europe
Born 1941
St. Gallen School of Transport
Training at Swissair
Joined Kuoni in 1962 as Tour Manager
1966–74 Head of Tour Operating at Kuoni United Kingdom
1974–84 Managing Director Kuoni United Kingdom
In present function since 1984
Born 1951
Joined Kuoni in 1972 as Manager Incoming
1973–74 Kuoni Travel Ltd., England
1974–78 Sales Manager, Kuoni Japan
1979–89 Various management functions inBusiness Travel division
1986–95 Member of the Board of Directorsof Business Travel International (BTI)
1989 Head of Business Travel division, Kuoni Reisen AG
1994 Vice-President Business Travel, Kuoni Reisen AG
1996 Vice-President Retailing, Kuoni Reisen AG
In present function since 1999
Executive Board of Kuoni Travel Holding Ltd.
from left to right: Hans Lerch, Peter Diethelm, Max E. Katz, Konrad Iten,Reto Bacher, Ibrahim Atallah, Marcel Herter, Thomas Stirnimann
Born 1951
Joined Kuoni in 1967 as apprentice
1970–71 Kuoni Travel Ltd., England
1971–81 Operational Branch Head
1981–86 Vice-Director General Manage-ment (non-CH), Kuoni Reisen AG, Zurich
1986–96 Managing Director Kuoni ReisenGmbH, Germany
1989 Qualified as B.B.A. Bachelor of Business Administration
1996–98 Vice-President Business Travel,Kuoni Reisen AG
In present function since 1999
Born 1955
HWV Zurich
1978 Graduated as business economist
1978–81 Brand Manager Unilever
1981–87 Regional Controller for JacobsSuchard in several countries
1987–91 Vice-President Finance andMember of Effems AG Executive Board
1991–95 Vice-President Finance andMember of Hürlimann Holding AGExecutive Board
In present function since 1995
Born 1962
Joined Kuoni in 1978 as apprentice
1981–87 Travel Advisor, Kuoni Reisen AG
1987 Purchaser North America
1989 Product Manager Travac AG
1991 Head of Sales and Marketing,Kuoni Reisen AG
1994 Head of Overseas division,Kuoni Reisen AG
1995 Head of Tour Operating Departmentand member of Kuoni Reisen AG’s executive management
In present function since 1999
Expanded Executive Board
Ibrahim Atallah
Senior Vice-President
Strategic Business Unit
Incoming and Asia
Konrad Iten
Senior Vice-President
Chief Information Officer
Born in Egypt in 1949
1974 Graduated in agronomy at the University of Alexandria
1975–78 Sales Manager at Naggar Travel Agency in Cairo
1979 Joined Kuoni as Sales RepresentativeIncoming
1990 General Manager Kuoni Hong Kong
1997 Head of Asia/Pacific Kuoni Reisen AG,with responsibility for all Asian marketsincluding Japan
In present function since 1999
Born 1957
1976 Completed commercial training atSchweizerische Kreditanstalt
1977–79 Bookkeeper/Controller at BrevesTreuhand
1979 Qualified as bookkeeper/controller
1979–90 Various posts at Phibro EnergyAG, Zug, ultimately as Head of InformationTechnology
1983 Qualified as analyst/programmer
1990–93 Managing Director of ITCOInformatic AG, Baar
1994 Joined Kuoni as Project LeaderIncoming
1995 CFO, CIO and member of Incoming’sexecutive management
1997 Vice-President Information Technology, Kuoni Reisen AG
In present function since 1999
Reto Bacher
Executive Vice-President
Strategic Business Unit
Business Travel
Max E. Katz
Executive Vice-President
Chief Financial Officer
Thomas Stirnimann
Executive Vice-President
Strategic Business Unit
Switzerland
91E X E C U T I V E A N D C O R P O R A T E B O D I E S90
SBU United Kingdom and North America Peter Diethelm
United Kingdom
Kuoni Travel Ltd. Peter Diethelm
Tour Operations Sue Biggs
Voyages Jules Verne Philip Morrell(Travel Promotions Ltd.)
Caribbean
Kuoni Caribbean Hotels Ltd. Peter Ramrattan
North America
Intrav, Inc. Ian Coghlan
Clipper Cruise Line Inc. Ian Coghlan
93E X E C U T I V E A N D C O R P O R A T E B O D I E S92
(Status 15 March 2000)
Group Staff Units
Corporate Communications Regula Weyermann
Corporate Development Georg Falkner
Internal Audit Bettina Beck
Assistant to CEO Chris Linder
Finance Max E. Katz
Controlling René Häsler
Mergers & Acquisitions Stephan Hitz
Treasury Alex Tüscher
Information Technology Konrad Iten
Chief Technology Officer Werner Lange
Operation François Kunz
Development Clemens Gubler
Services Nadine Matzinger
E-commerce Reto Matzinger
Management of Strategic Business Units
SBU Switzerland Thomas Stirnimann
Switzerland
Kuoni Reisen AG Thomas Stirnimann
Edelweiss Air AG Niklaus Grob
Manta Reisen AG Amy Stierli
Privat Safaris Reisebüro AG Urs Bellmont
PRS AG Hans-Jörg LeuzingerGianni Moccetti
Railtour Suisse SA René KellerWerner Schindler
Reisebüro Popularis Rainer Schenkel
Rotunda Tours AG Hanspeter Zeier
SBU Business Travel Reto Bacher
Austria
BTI Österreich Dr. Gunther Hölbl
BTI Hungary András Rónai
Germany
BTI Euro Lloyd Reto Bacher
Operations Walter Worbsand Participations
Finance Wolfgang Weiss
Switzerland with Liechtenstein
BTI Kuoni Switzerland Beat Bürer
SBU Incoming and Asia Ibrahim Atallah
Kuoni Reisen AG (Incoming Section) Ibrahim Atallah
Greece George Georgopoulos
Hellenic Tours S.A. Anastassios Diavatis
Hellenic Tours S.A., Heraklion Yiannis Dokos
Hellenic Island Services Ltd., Rhodos Georg Michalakis
Kenya
Private Safaris (East Africa) Ltd. Alexander Spiro
Asia
P&O Travel Ltd., Hong Kong Richard Willis
P&O Garden City Travel Pte. Ltd., Singapore Kek Yoong Chung
P&O Regale Travel Co. Ltd., Bangkok Jumpol Chadavadh
P&O Travel Ltd., Beijing Sharon Wu
India
Kuoni Travel (India) Ltd. Ranjit Malkani
95E X E C U T I V E A N D C O R P O R A T E B O D I E S
SBU Europe Marcel Herter
Austria
N-U-R Neckermann Reisen AG Franz Erich TobischKuoni Veranstaltungs AG
Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl
Allround Travel International Ges.m.b.H. Michael Manak
Restplatzbörse Ges.m.b.H. Paul Kothbauer
Denmark
Alletiders Rejser A/S Poul Erik Madsen
France
Voyages Kuoni SA Jean-Paul Veslot
Hungary
Kuoni Utazási Iroda Kft. András Rónai
N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi
Italy
Kuoni Gastaldi Tours S.p.A. Ermanno Fici
Netherlands
Special Traffic (Kuoni Travel Nederland B.V.) Norbert Good
Slovakia
Neckermann Slovakia Martin Horsky
Slovenia
Neckermann Slovenia Tamara Suen
Spain
Viajes Kuoni S.A. Daniel Ponzo
Sweden
Allatiders Resor AB Henrik Turen
94
97
Edelweiss AirKuoni’s Swiss charter airline. Subsidiaryof the Kuoni Group. The fleet now consists of three brand-new AirbusA320-200 and, in autumn 2000, will beexpanded by a new Airbus A330-200 tocover long-haul routes.
Far East Travel CentreIBU (�) of SBU UK specialising in ticketsales for flights to the Far East.
FranchisingComprehensive service package (e.g. useof brand, marketing and product know-how, IT solutions and training) providedby the franchisor to the franchisee for afee.
Hellenic Island ServicesHandling agent (� Agent) on Crete andRhodes. A Kuoni Group and HellenicTours joint venture.
Hellenic Tours S.A.Kuoni subsidiary based in Athens andactive in the Incoming (�) sector.
Helvetic ToursKuoni Switzerland’s brand for budgetholidays.
IATAInternational Air Transport Association.International organisation of which allmajor flight companies are members.
IBUIndependent Business Unit. Businessunits of SBU United Kingdom active inniche markets.
ImplantThe travel office operated by a businesstravel operator on the premises of alarge corporate customer.
Incentive TravelIBU (�) specialising in organising travelfor corporate employees as a reward foroutstanding performance.
IncomingStrategic Business Unit providing ser-vices at a holiday destination. Incomingis made up of the head office in Zurich,sales outlets overseas and local offices in Europe, as well as the subsidiariesHellenic Tours (�), Hellenic IslandServices (�) and Private Safaris (EastAfrica) (�).
IntravUS subsidiary acquired by Kuoni in1999. Specialises in cruises, luxurysafaris and exclusive holidays by privatejet.
Kuoni and Hugentobler FoundationPrincipal shareholder of Kuoni TravelHolding Ltd. in terms of voting rights(25% of voting rights and 6.25% ofshare capital).
Kuoni Gastaldi Tours S.p.A.Joint venture based in the Italian city
of Genoa and created in 1998 by themerger of Gastaldi Tours and Kuoni
Viaggi. Kuoni Gastaldi ToursS.p.A. is the number 1 company in
the Italian long-haul market.
G O O D T O K N O W96
AgentTravel agency operated independently ofKuoni that sells Kuoni tours. Designa-tion also used for travel agencies whichrepresent Kuoni as handling agent at the destination.
Alletiders Rejser A/SThe subsidiary created by the merger of the three Danish operators LarsenRejser, Simon’s Charterkompagni andHerning Charter, acquired by the KuoniGroup in autumn 1998. Alletiders RejserA/S is one of the leading companies in the Danish market and organises leisure travel to popular destinations in theMediterranean and overseas.
Alternative DistributionThe direct marketing of tours, e.g. viathe Internet, interactive TV or callcentres.
Allround Travel International GmbH(ATI)Austrian subsidiary specialising in tripsto Asia.
Apollo Resor ABApollo Resor AB, with headquarters inStockholm, is a Swedish tour operatorfocused on the mid-price segment. It alsohas operations in Denmark and Norway.It runs its own charter company Novair
and is also a leading Internet tour ope-rator. The Kuoni Group holds a 45%stake in the company, with the option ofan increase.
Business Travel International (BTI)Global alliance of business travel opera-tors with an annual turnover of roughlyUSD 20 billion. BTI consists of 75 natio-nal partners in 80 countries, employsaround 30,000 people worldwide in over3,000 offices and is represented exclu-sively in each country by a leadingbusiness travel specialist. Kuoni repre-sents BTI in Switzerland, Germany,Austria, Hungary and Liechtenstein.
CharterBooking the full capacity of a transportcarrier (full charter) or a part thereof(partial charter) at the charterer’s ownrisk. Kuoni has its own charter airline inSwitzerland called Edelweiss Air (�).
Clipper Cruise LineA subsidiary of Intrav (�) specialising inluxury cruises.
CommercialTravel jargon for business travel (�).
Cosmos GesmbHTradition-laden Viennese travel agencywhich has been owned by the KuoniGroup since April 1999.
EBITAEarnings before Interest, Taxes andAmortisation of goodwill. Term used inaccounting for profit before deductionof financial expense, taxes and amortisa-tion of goodwill.
Kuoni Encyclopaedia
Special TrafficOfficial name: Special Traffic (KuoniTravel Nederland B.V.). Subsidiary ofthe Kuoni Group operating in the long-haul sector in the Netherlands.
Sport AbroadIBU (�) of SBU United Kingdom specia-lising in tours to special sports events.
The Travel CollectionIBU (�) of SBU United Kingdom specia-lising in direct sales.
Tour OperatingThe core business of a tour operator. Itconsists of selecting and purchasingservices/products and processing themfor use in package tours (�) and tailoredtravel arrangements.
Trade FairsIBU (�) of SBU United Kingdom specia-lising in tours to trade fairs.
TV Travel Shop24-hours-a-day British TV channelselling flight tickets, package tours andsupplementary products such as travelinsurance and car hire. Kuoni holds a
12.5% stake.
Voyages Jules VerneBritish tour operatorVoyages Jules Verne is a direct sales agent for
up-market tours and beachholidays. Kuoni acquired Voyages JulesVerne in 1998.
99
RestplatzbörseSubsidiary of the Kuoni Group whichhas successfully established itself in theAustrian market as a specialist in thesale of last-minute seat capacities.
RetailingTravel consulting and the sale of holidaytravel arrangements (� package tours),business travel arrangements and indi-vidual services from diverse serviceproviders (�), such as flights, train andboat rides, rental cars, etc.
Rotunda ToursSwiss tour operator acquired in 1995and specialising in travel to southernAfrica.
SBUStrategic Business Unit – organisationalunits on which the Kuoni group struc-ture is based.
Service providerEntity which provides travel services,e.g. airlines, hotels,restaurants, etc. Touroperators also refer tothem as suppliers.
SOS Children’s VillageOn 18 July 1997Kuoni became anactive partner of SOS Children’s Village, the largest pri-vate humanitarian organisation of its kind in the world. The aim of the orga-nisation is to provide a stable home to children in need and to help them pre-pare for an independent future.
SOTCBrandname under which Kuoni TravelIndia operates.
G O O D T O K N O W
Kuoni Travel Holding Ltd.The Kuoni Group’s holding organisa-tion.
Kuoni Travel IndiaIndian tour operator acquired by theKuoni Group in 1996 and operatingunder the SOTC (�) brand. This movemade the Kuoni Group India’s biggestprovider of package holidays abroad.
Manta Reisen AGSubsidiary (90%) of the Kuoni Groupspecialising in holidays to the Maldivesand diving holidays.
N-U-R Neckermann Reisen AGCompany domiciled in Vienna in whichthe Kuoni Group holds a 51% stake.The remaining shares are owned by N-U-R Touristic GmbH, Frankfurt.Neckermann Utazás Kft. Budapest(Hungary) is a subsidiary of N-U-RNeckermann Reisen AG, which alsooperates in Slovenia and Slovakia.
Package holidayA holiday combining various services(flight, hotel accommodation, coachtransportation, local services etc.) andsold at a total price designated inadvance.
98
P&OPeninsular & Oriental Steam NavigationCompany (P&O Ltd.). Tradition-ladenBritish company and partner in a 50:50joint venture with the Kuoni Group,P&O Travel Ltd. Asia, which was fina-lised in 1997 and is headquartered inHong Kong.
PopularisOfficial name: Reisebüro Popularis. TheKuoni Group holds the majority share-holding (65%), while Coop Switzerlandholds 34% of shares. Popularis is activein tour operating (�) under the brand-name Coop extra and, with the HelveticTours branches, in retailing (�) in Switzerland.
Privat SafarisOfficial name: Privat Safaris ReisebüroAG. East Africa specialist and subsidiaryof the Kuoni Group.
Private Safaris (East Africa)Subsidiary, domiciled in and operatingfrom Nairobi, which services clientsfrom Europe and overseas.
ProductionThe purchase of products and servicescombined by the tour operator (�) toform travel arrangements.
Railtour SuisseOfficial name: Railtour Suisse SA. Railtravel operator of which the KuoniGroup is the majority shareholder (87%).
101
Asia
P&O Travel Limited Beijing Sharon Wu
Room 1911, Capital Mansion Managing Director
No. 6 Xin Yuan Nan LuChaoyang DistrictBeijing 100004 P.R.C.
Phone (+86) 10 6466 4060 and 6466 2145
Fax (+86) 10 6466 4069
P&O Regale Travel Company Jumpol Chadavadh
Limited Managing Director
191/1-2 Sathorn 12(SOI Suksa Viddhaya 2)BangrakBangkok 10500, Thailand
Phone (+66) 2 635 2450-69Fax (+66) 2 236 0283
Austria
Reisebüro Kuoni Ges.m.b.H. Dr. Gunther Hölbl
Kärtner Ring 17 Managing Director
AT-1010 Vienna
Phone (+43) 1-51533-0Fax (+43) 1-51533-542
Kuoni Reisen Veranstaltungs AG Franz Erich Tobisch
Lassallestrasse 7a / Cityplex Managing Director
AT-1020 Vienna
Phone (+43) 1-50 202-610Fax (+43) 1-50 202-690
N-U-R Neckermann Reisen AG Franz Erich Tobisch
Lassallestrasse 7a / Cityplex Managing Director
AT-1020 Vienna
Phone (+43) 1-50 202-400Fax (+43) 1-50 202-390
Allround Travel Michael Manak
International Ges.m.b.H. Managing Director
Reisnerstrasse 18AT-1030 Vienna
Phone (+43) 1-712 24 666Fax (+43) 1-713 68 38
A D D R E S S E S100
Kuoni Travel Holding Ltd.
Kuoni Travel Holding Ltd. Hans Lerch
Neue Hard 7 President of the
CH-8010 Zurich Executive Board, CEO
Phone (+41) 1-277 44 44 Reto Bacher
Fax (+41) 1-271 52 82 Executive Vice-President
SBU Business Travel
Marcel Herter
Executive Vice-President
SBU Europe
Max E. Katz
Executive Vice-President
Chief Financial Officer
Thomas Stirnimann
Executive Vice-President
SBU Switzerland
Konrad Iten
Senior Vice-President
Chief Information Officer
Ibrahim Atallah
Senior Vice-President
SBU Incoming and Asia
Asia
P&O Travel Ltd. Richard Willis
Suite 1701, Tower 2 Managing Director
The Gateway25 Canton RoadTsim Sha TsuiKowloon, Hong Kong
Phone (+852) 2956 6888Fax (+852) 2956 6789
P&O Garden City Travel Pte. Ltd. K.Y. Chung
No. 200 Cantonment Road Managing Director
#04-05 SouthpointSingapore 089763
Phone (+65) 224 7730Fax (+65) 222 7915
103
Greece
Hellenic Tours S.A. George Georgopoulos
23–25 Ermou Street Managing Director
GR-10563 Athens
Phone (+30) 1-3359 700and 3243 715
Fax (+30) 1-3234 947and 3227 494
Hungary
Kuoni Utazási Iroda Kft. András Rónai
Báthory utca 19 Managing Director
HU-1054 Budapest
Phone (+36) 1-332 41 16Fax (+36) 1-353 43 50
N-U-R Neckermann Utazás Kft. Dr. Veronika Békefi
Dayka Gabor utca 3 Managing Director
HU-1118 Budapest
Phone (+36) 1-319 69 91Fax (+36) 1-319 66 96
India
Kuoni Travel (India) Ltd. Ranjit Malkani
Vaswani Mansion Chairman and
120 Dinshaw Vachha Road Managing Director
Opp. K.C. CollegeChurchgate, Mumbay – 400 020
Phone (+91) 22 2839813/14/17Fax (+91) 22 2855840
Italy
Kuoni Gastaldi Tours S.p.A. Ermanno Fici
Mura di San Chiara 1 Managing Director
IT-16128 Genoa
Phone (+39) 010-599 91Fax (+39) 010-599 9613
A D D R E S S E S102
Austria
Restplatzbörse Ges.m.b.H. Paul Kothbauer
Mariahilferstrasse 77 Managing Director
AT-1060 Vienna
Phone (+43) 1-58085-0Fax (+43) 1-58085-999
Wüstenrot Reiseservice GmbH Wolfgang Amesberger
Alpenstrasse 70AT-5033 Salzburg
Phone (+43) 662-6386-72Fax (+43) 662-6386-740
Denmark
Alletiders Rejser A/S Poul Erik Madsen
Kongevejen 155 Managing Director
DK-2830 Virum
Phone (+45) 45 83 23 00Fax (+45) 45 83 31 00
France
Voyages Kuoni SA Jean-Paul Veslot
95, rue d’Amsterdam Managing Director
FR-75008 Paris
Phone (+33) 1-45 85 71 22Fax (+33) 1-42 80 41 85
Germany
BTI Euro Lloyd GmbH & Co. KG Reto Bacher
Neumarkt 35–37 Executive Vice-President
DE-50667 Cologne SBU Business Travel and
Chairman of the
Phone (+49) 221-20 280 Executive Board of
Fax (+49) 221-20 281 26 Euro Lloyd
105
Sweden
Allatiders Resor AB Henrik Tuen
Nedre Långvinkels Gatan 3SW-25220 Helsingborg
Phone (+46) 42-1444-00Fax (+46) 42-1444-09
Switzerland
Kuoni Reisen AG Thomas Stirnimann
Neue Hard 7 Executive Vice-President
CH-8010 Zurich SBU Switzerland
Phone (+41) 1-277 44 44Fax (+41) 1-271 52 82
Edelweiss Air AG Niklaus Grob
Operations Center Managing Director
P.O.BoxCH-8058 Zurich-Airport
Phone (+41) 1-816 50 60Fax (+41) 1-816 50 61
Manta Reisen AG Amy Stierli
Treichlerstrasse 10 Managing Director
CH-8032 Zurich
Phone (+41) 1-268 24 24Fax (+41) 1-268 24 74
Privat Safaris Reisebüro AG Urs Bellmont
Wiesenstrasse 10, P.O.Box Managing Director
CH-8034 Zurich
Phone (+41) 1-386 46 46Fax (++41) 1-386 46 47
PRS AG Hans-Jörg Leuzinger
Seestrasse 127 Gianni Moccetti
CH-8700 Kusnacht Managing Directors
Phone (++41) 1-914 25 25Fax (++41) 1-914 25 20
A D D R E S S E S104
Kenya
Private Safaris (East Africa) Ltd. Alexander Spiro
Caxton House Managing Director
Kenyatta AvenueP.O. Box 45205Nairobi
Phone (+254) 2 33 71 15Fax (+254) 2 33 84 38
Netherlands
Special Traffic Norbert Good
(Kuoni Travel Nederland B.V.) Managing Director
Entrada 212–214P.O. Box 3370
NL-1001 AD AmsterdamPhone (+31) 20-398 92 92Fax (+31) 20-398 92 02
Slovakia
Neckermann Slovakia Martin Horsky
Panska 23SK-81101 Bratislava 1
Phone (+421) 7-544 30 981Fax (+421) 7-544 30 984
Slovenia
Neckermann Potovanja Tamara Suen
Traska C. 23SLO-2000 Maribor
Phone (+386) 62-300 49 00Fax (+386) 62-300 49 49
Spain
Viajes Kuoni, S.A. Daniel Ponzo
Paseo Infanta Isabel, 17 Managing Director
ES-28014 Madrid
Phone (+34) 91-538 27 00Fax (+34) 91-538 27 27
107
Hotels
Hawksbill Beach Hotel Peter Ramrattan
Five Islands, P.O. Box 108 Area Manager
St. John’s, Antigua W.I.
Phone (+1) 268-462 03 01Fax (+1) 268-462 15 15
Discovery Bay Beach Hotel Peter Ramrattan
Holetown Area Manager
St. James, Barbados W.I.
Phone (+1) 246-432 13 01Fax (+1) 246-432 25 53
Incoming Services
Kuoni Reisen AG Ibrahim Atallah
Incoming Services Senior Vice-President
Überlandstrasse 360 SBU Incoming and Asia
CH-8051 Zurich
Phone (+41) 1-325 21 11 Fax (+41) 1-325 23 01
A D D R E S S E S106
Switzerland
Railtour Suisse SA René Keller
Chutzenstrasse 24 Werner Schindler
CH-3000 Berne 17 Managing Directors
Phone (+41) 31-378 00 00Fax (+41) 31-378 02 22
Reisebüro Popularis Rainer Schenkel
Neuengasse 30 Managing Director
CH-3001 Berne
Phone (+41) 31-329 43 70Fax (+41) 31-329 43 84
Rotunda Tours AG Hanspeter Zeier
Wiesenstrasse 10, P.O.Box Managing Director
CH-8034 Zurich
Phone (+41) 1-386 46 66Fax (+41) 1-386 46 88
United Kingdom
Kuoni Travel Ltd. Peter Diethelm
Kuoni House Executive Vice-President
GB-Dorking, Surrey RH5 4AZ SBU United Kingdom
and North America
Phone (+44) 1306 74 08 88 Sue Biggs
Sita LONBTSR Managing Director
Fax (+44) 1306 74 44 88 Tour Operating
Travel Promotions Ltd. Philip Morrell
Voyages Jules Verne Managing Director
21, Dorset SquareGB-London, NW1 6QG
Phone (+44) 171 616 10 00Fax (+44) 171 723 86 29
USA
Intrav, Inc. Ian Coghlan
7711 Bonhomme Avenue Managing Director, CEO
St. Louis, MO 63105
Phone (+1) 314 727-0500Fax (+1) 314 727-2533
