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Buyout of the Kuoni Group: DER Touristik is expanding its presence in Europe…when is France’s turn?

4.9 billion euros in revenues and close to 7 million clients in 2014

The touristic group DER Touristic, a branch of REWE, bought out the tour-operating activities of Kuoni Group on June 22nd, 2015. Little known in France, it is an important German company in this sector, with over 2,000 travel agencies for 4.9 billion euros in revenues and 6.7 million travelers in 2014.

Rédigé par Pierre Coronas translated by Joséphine Foucher le Jeudi 25 Juin 2015

DER Touristik gathers numerous travel agencies, hotels, and Business Travel that operate on the German market - DR: DER Touristik
DER Touristik gathers numerous travel agencies, hotels, and Business Travel that operate on the German market - DR: DER Touristik
The information was revealed on June 22nd, 2014 in a release: Kuoni Group gives all of its tour-operating activities and travel agencies in Switzerland, in Benelux, Scandinavia, and the United Kingdom.

They will be bought out by DER Touristik, the branch aimed at tourism of the German group REWE.

It is also taking back an airline company - Novair - and a touristic complex, Las Playitas, in the Canary Islands (Spain.)

The transaction remains subject to the approval of the authorities of the competition in Switzerland and in the European Union. It should be finalized by Fall 2015. Its amount has not yet been revealed.

But who is DER Touristik? What are the operations of this group in Germany? And what is weight on the touristic market in Germany?

2nd tour-operator in Germany, After TUI

DER Touristik is one of the many branches and brands of the REWE Group, a German giant of retail trade.

Based in Frankfurt (Germany), the group DER Touristik gathers numerous brands that operate on the sector of trips and leisure: Dertour, ITS, Jahn Reisen, Travelix, FC Travel Solutions, DerPart, lti Hotels, DR. Holiday,

“We are the second tour-operator on the German market after TUI and before Thomas Cook, explains Katharina Hanke, Director of Public Relations for DER Touristik.

The buyout of Kuoni’s activities will not change this position. In fact, we are not applying a strategy focused at making us a leader on the market. It rather aims at helping us enjoy a profitable growth.”

Yet the group employs 7,050 people. A number that should grow with the arrival of 2,350 new employees coming from Kuoni Group that DER Touristik has committed to hire back.

In 2014, the group made revenues of 4.9 billion euros. It should go to 7 billion euros with the buyout of Kuoni’s tour-operating activities.

The tour-operating brands of DER Touristic have made 6,765,476 clients travel in 2014. To that number will now be added Kuoni’s 1.5 million travelers in Switzerland, Scandinavia, and in the UK, as mentioned in Les Echos.

Over 2,000 travel agencies in Germany

The group edits 23.5 million brochures that provide vacations in 156 different countries and possess 42 of its own hotels. But it offers a total of 12,149 rooms to its tourists, thanks to the parks of its partners.

The three most popular “sunny” destination amongst its clientele in 2014 are, in order: Spain, Turkey, and Greece. But DER Touristik also sells long-haul flights. On this segment, its popular destinations in terms of sales are the US and Canada, Thailand and the Maldives.

As for “City Trips” in Europe, the group sells lots of escapades in Germany since its two major destinations are Hamburg and Berlin. Then comes London (UK) in third place.

But DER Touristik doesn’t only produce trips. It also sells them through the intermediary of its distribution network.

It counts 2,034 agencies spread out over the Germany territory: 1,102 under the DerPart brand (DER Reisebüro), 801 DER Touristik Partner - Service, and 131 dedicated to business tourism under the brands of Fcm Travel Solutions and DerPart Business Travel.

With new retail outlets in Switzerland, United Kingdom, Benelux, and Scandinavia, DER Touristik in going to expand at the European level.

Should we anticipate its arrival on the French market?

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