How is the current financial crisis affecting Kuoni and what consequences is the company expecting in the medium-term?
The continuing global economic crisis will slow bookings in 2009. Late sales will not fully compensate the booking declines to date. Booking figures for 2009 suggest reluctance among customers to make longer-term travel plans. They tend to book their holidays later and also make more last-minute holiday decisions. But Kuoni’s business model of low vertical integration leaves the company optimally placed to face a challenging year.
Kuoni redesigned its brand completely in 2008. What exactly has changed?
Intensive efforts throughout the year allowed Kuoni to lay the foundations in 2008 to remain the world's most successful tour operator in the premium segment. With its broad-based branding initiative, Kuoni has effected one of the most comprehensive transformations in its history and has totally repositioned its brand – with new product lines and service offers, new corporate values and a revised corporate identity. This repositioning was successfully launched in Mai 2008 in Zurich and introduced worldwide with the Global Launch Event in London in September 2008. Within the last few months, Kuoni also announced a series of interesting partnerships – i.e. with the Serpentine Gallery in London or with the design shooting star Osman Yousefzada.
What is the role of Kuoni’s Getaway Council (formerly known as Consumer Board)?
In the course of the rebranding process, Kuoni created the “Kuoni Getaway Council” – to help better define, explore and understand the developments, themes and moods that define our times – both in the present and in the future. Kuoni Getaway Council is a changeable group of prolific experts and innovative thinkers from different fields, industries and countries. It includes entrepreneurs, scientists, architects, chefs, authors, designers and authorities on new trends in travel and lifestyle.
Will the internet take over from traditional sales channels in the longer term?
Around 16% of the Group's sales are online, and this is likely to increase this year, also as a result of the late booking trends. And we want to offer our customers all possible distribution channels so that they can chose on their own, when and where they would like to book their holidays. That’s why Kuoni continues to devote much of its attention and resources to personal customer contact, at the same time investing in sales channels like internet and call centres. Most of our websites have the possibilities to book flights and hotels individually, or packaged holidays respectively. Nonetheless, especially in the premium segment – which is where Kuoni is largely active – customers attach a lot of value to receiving personal and exclusive advice.
What kind of added value can a travel organisation offer that an all-online vendor cannot?
If customers are looking for a travel arrangement composed of various modules, and if they want to be sure they are getting the best possible value for their money, they will want personal advice, too. As a global travel organiser, we have a wealth of experience, specific knowledge of our destinations and a comprehensive network of connections that enable us to guarantee this added local value. With our interactive communications, we can also constantly respond to our customers’ individual needs, both at home and at their holiday destination, with advice on hotels, local tips, support and more.
What kind of products can easily be booked over the internet?
Customers who want to book straightforward products – like point-to-point airline tickets, hotels, rental cars, tickets for musicals and of course package holidays – can easily do this online.