Trade backs Kuoni as operator promises 'business as usual'

Miles Morgan Travel owner Miles Morgan said the agency uses Kuoni as a preferred supplier and has seen strong sales of its product “since the middle of last week”.

And he argued that if the operator is bought by the right backer, it could make it even stronger.

Morgan said: “It is a fantastic brand and a fantastic operator for someone to pick up. Often when there is a pan-European business that becomes single country focused they become very successful.

“I don’t think they will have a problem selling it.”

Global Travel Group managing director Andy Stark said sales of the operator’s product in 2014 via its members had been broadly similar to 2013.

He added: “It is a product we offer through our agents, it is a good product and we’ve got a great relationship with Derek (Jones the UK managing director) and Amanda (Darrington).

“My impression is it is a good opportunity. It is a strong brand and we have seen investment in the brand and the retail proposition. I’m very surprised to see that that’s something they want to let go of.”

Barrhead Travel chief executive Sharon Munro added: “Kuoni is a fantastic brand with great product, with whom we work very closely. We’ve forged close relationships with people across the company over a number of years, who have been very supportive of Barrhead Travel.

“Hopefully, whoever takes over the business will continue the good work and take Kuoni to new heights.”

However, Elite Travel Group chief executive Neil Basnett said sales had fallen by up to 25% via his members in 2014.

He said this was in spite of a strong relationship between the consortium’s head office and Kuoni and argued it was as a result of agents taking umbrage over the operator’s increased high street presence.

“All of our members are strictly independent and they do not like the policy of Kuoni opening shops,” Basnett said.

He also believes Kuoni’s recent offer of price parity for third-party agents has led to them being less competitive against certain rival operators.

“They’ve got so much more competition now, if I look back 10 or 15 years ago we didn’t have Azure Collection or Lusso and these companies have worked very hard with our members.”

Basnett said: “As a consortium we really want to work with Kuoni and we hope their new owners want to continue working with us.”