THERE is still a future for tour operating in Western Europe but this belief comes with the caveat that the business must evolve in order to handle the disruption caused by the Internet.
Kuoni’s decision to exit tour operating is by no means a sign the business is dead, said industry players, who are also not surprised by the announcement, given the several restructures Kuoni has been making over the years in a bid to survive a changing marketplace.
Said a UK operator on the condition of anonymity: “Most of the established conventional tour operators – particularly those that are trade-focused – have seen margins come under pressure primarily from OTAs, bed banks and, in many cases, hoteliers becoming more aggressive in trying to obtain direct sales.
“(However), there is still a place for specialist operators, maybe focusing on a few areas rather than trying to be worldwide.”
He added: “The challenge is ensuring those clients who have taken your time to obtain information actually book through you, rather than rushing to an OTA with the information so they can undercut.
“The OTAs here in the UK, and maybe elsewhere, are very tech-savvy and particularly good at selling distressed stock – attributes not usually associated with the more established operators.”
Asked about the future of the tour-operating business, Hotelplan CEO Thomas Stirnimann said: “We can only say that it is working out well for us, but you needed to adapt a couple of years ago. Today there is no more B2B or B2C business but only business with which you serve all channels.”
Hotelplan is a potential buyer, with Stirnimann in an interview after the announcement made by Kuoni saying “we are looking at it”, when asked if the company was keen to buy Kuoni Switzerland.
If a deal goes through, Hotelplan would consolidate its position in Switzerland, where it is the second-largest tour-operating company after Kuoni. Its overture was widely greeted as “logical” by the trade.
Chris Bailey, senior vice president sales & marketing of Centara Hotels & Resorts Thailand and a former tour operator, said there’s “absolutely” a future for tour operating.
Read the full story in TTG Asia-ITB Berlin Daily 2015
