DER Touristik Suisse with Kuoni brand makes more turnover and profit
Published: Tuesday, Apr 9th 2024, 12:01
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Kuoni owner DER Touristik Suisse is continuing its recovery after the coronavirus pandemic. Sales rose by over a fifth last year. In operational terms, the travel provider made a substantial profit. And things are set to continue to improve in the current year.
In total, DER Touristik Suisse increased its turnover to 590 million Swiss francs last year. This is an increase of 22 percent compared to 2022, the subsidiary of the German travel provider Dertour Group announced at a media conference in Zurich on Tuesday. Part of this was due to higher prices.
DER Touristik Suisse has thus exceeded its own expectations of returning to 90 percent of pre-pandemic sales in 2023. In 2019, the company generated sales of just under 644 million francs.
"Fat" increase in operating profit
Profitability also improved. The operating result before amortization (EBITA) improved significantly. "We are proud of a big, fat plus", said CEO Stephanie Schulze zur Wiesch in an interview with the news agency AWP on the sidelines of the media conference. The result was already well into positive territory in 2022.
However, it is not allowed to disclose figures. These would only be reported at the level of the German parent company Dertour Group, which in turn belongs to the retail giant Rewe. However, the operating profit was better than in 2019, said the German, who took over as CEO last June.
Business in Asia soars
The desire to travel after the pandemic is now causing the result to climb further. The main drivers include high percentage sales growth for the brands Asia365 (Asia, +156 percent), Dorado Latin Tours (South and Central America, +66 percent) and Kuoni Cruises (+41 percent).
The top-selling destinations in 2023 were the Maldives, Lapland, Iceland, Crete and Mallorca. All brands contributed to the pleasing overall result, explained company boss Schulze zur Wiesch.
Further significant increase in sales expected
After the end of the first quarter of 2024, DER Touristik Suisse expects a further significant increase in sales in the current financial year. "Between March and October 2023, the company recorded an exceptionally high number of advance bookings for the 2024 travel year." The company has started the current year with double-digit growth.
However, the momentum slowed in January and February: Currently, bookings are "only" in the single digits above the previous year's level, said Schulze zur Wiesch. Families in particular were still reluctant to book summer vacations in the Mediterranean. They were still waiting and deciding where or whether they would go on vacation at all depending on the weather.
A survey has shown that the Mediterranean is still the most popular destination for summer vacations. However, vacations in Switzerland follow closely behind. And the demand for cooler destinations such as Scandinavia is increasing.
"But the bottom line is that the desire to travel is unbroken," said Schulze zur Wiesch. She is convinced that there will now be a surge in bookings for the summer. On the other hand, fall is getting stronger and stronger. October is now hot on the heels of July as the month with the highest number of travelers.
Spending propensity remains high
The increase in rents and health insurance premiums has not had any impact on customers' willingness to spend. On average, people are paying 2 percent more than in the previous year, for Mediterranean trips it is even 5 percent more, as well as for trips to Lapland and Iceland.
Long-haul flights, on the other hand, have become cheaper. This is mainly due to the drop in air fares because airlines are now flying more again. "There are already some dumping prices again," said Schulze zur Wiesch.
"I am very confident that the 2024 financial year will also be successful," she said. The goal this year is to reach or even slightly exceed the pre-Corona level of CHF 644 million in sales from 2019. But the most important thing is profitable growth.
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