Kuoni: our toughest ever year
Kuoni has insisted it expects “respectable” year-end results in March despite facing the “most difficult and challenging year” in its history.
Managing director Sue Biggs, speaking at the launch of its Longhaul Report, said: “From the tsunami, which affected three of our top four destinations, to hurricanes, terror attacks and rising fuel surcharges, 2005 was not a pleasant one for longhaul, but the last half of the year did see a recovery.”
Biggs said that in spite of its troubles, the Maldives had taken the number one spot for 2005 with Thailand third. Sri Lanka’s recovery has been slower, with 50% of business lost in 2005.
The strongest performing region was Africa and the Middle East, with Egypt at number two for the first time – in spite of the July Sharm el Sheikh bombings – and Kenya and Morocco experiencing massive growth.
Biggs tipped Oman and the UAE for 2006 success, along with Indochina and China which both get new Specialist Collection brochures in 2006. Africa will follow, taking the number of specialist brochures to nine.
A big loser was the USA, with a 30% drop. Biggs said it had “shot itself in the foot” over stringent security measures and “visa chaos”.
A warning was also issued to the poor-performing Caribbean, to “wake up” to competition from Africa and the Middle East.
“Resort refurbishments and innovation are ongoing but things need to speed up,” said Biggs.
Luxury travel is the fastest growing part of the business, with a dedicated Worldclass website launching at the end of the summer.
Kuoni also launched its “revolutionary” dynamic packaging technology which claims to be the most sophisticated tailor-made system on the market.
“This service has simply not been available until now in the UK,” said senior manager e-business, Matt Rooke.
The product has been launched with North America content and will be followed by Australasia and Round the World in February.
Report by April Hutchison
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