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Nov 2 - 8, 2007 / No.1535
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Kuoni integrates buying |
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Pilot by Kuoni UK in Thailand not a test for centralised contracting
By Raini Hamdi
BALI – Kuoni UK is piloting “a more integrated buying” approach in Thailand, but the move is not a test for centralised contracting eventually.
Rather, Kuoni UK product manager Asia, Ms Tamara Diethelm, said it was part of Kuoni UK’s effort to explore ways of working together with the rest of the Kuoni group.
Under a new arrangement, Bangkok-based Kuoni group contracting manager, Mr Andre van der Marck, will buy Thailand for Kuoni UK as well (from only Kuoni Europe before), and while Ms Diethelm would still attend contracting meetings, inspect sites and meet partners, she would focus on building the product “in-market, spending more time talking to our agents to find out what the customers really want and responding faster than our competitors to market needs”, she said.
Kuoni UK, now led by a new managing director, Mr Nick Hughes, who replaced Ms Sue Biggs, mirrors the whole Kuoni group’s attempt to transform itself in a consolidated leisure travel market.
The whole group’s restructure into specific product lines and brands, from its traditional geographical lines (TTG Asia, July 6-12), is aimed at aligning its products and services more closely to market and consumer needs, and 2009 will be the first year the new structure is used for all financial reporting.
| | Diethelm: “a new chapter”. |
A cash cow of the Kuoni group, and a major producer to the Far East, it was no surprise Kuoni UK’s new head came from a consulting and marketing background. Mr Hughes was director of services of RAC, a leading provider of car products and services; American Express’s head of regional marketing card services Europe; and McKinsey’s engagement manager based in London. Kuoni group CEO, Mr Armin Meier, said Mr Hughes “has all the tools and credentials to further develop Kuoni UK and its market position”.
Ms Diethelm said there was an energetic atmosphere and new excitement at Kuoni UK entering “a new chapter”.
“We are going to be much more integrated with the rest of the Kuoni group and that will affect all levels, including product, partners, etc...we are looking at greater integration in buying, not centralised contracting or one rate for the whole of Kuoni.”
She added: “While there will be some volume advantage in us coming together, there is also advantage for suppliers. For example, Andre could say, ‘there is a good deal here, we need for all of Kuoni for this’, which would result in a bigger push by Kuoni for the supplier. We can all together support the expansion programmes of, say, Dusit Hotels & Resorts, or Centara Hotels & Resorts, rather than doing it independently.
“It is also helpful for us (Kuoni UK) to have someone based in Thailand, who has a real feel of the ground and can travel to a tourist spot in a jiffy should there be a problem. However hard I try, there is no way I can do that, based in the UK.”
On Kuoni UK’s effort to get closer to the market, Ms Diethelm said: “Kuoni UK pioneered longhaul as a specialist but now, even longhaul has become a commodity. You need to ‘tone’ the programme to suit the customer. Customers have always valued the service levels of Kuoni; we get huge repeat business because of this. But...we have to go one step further from what we are, be in front of the business and get closer to the customers. There is greater focus on listening to the sales team and on market research, and we will be doing more direct marketing targeted at specific customer groups.”
Roberto Luna quits
The Kuoni group reorganisation has resulted in the resignation of Mr Roberto Luna as managing director of Kuoni Switzerland.
Observers expected him to leave as the restructure assimilates Kuoni Switzerland and its brands into Kuoni’s new strategic business units (SBU), with Mr Luna reporting to Mr Stefan Leser, who heads Kuoni’s SBU Smart.
Mr Leser now assumes responsibility for Kuoni Switzerland overall.
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