Austria: Travel agencies stop bargaining

Article Abstract:

In 2002 bargaining will be more difficult in Austrian travel agencies. Ruefa, an Austrian tourism group, plans to prohibit price reductions by more than 3%. This is due to the currently bad economic situation of the Austrian tourism industry and to the fact that German tourism groups intend to reduce commissions for Austrian travel agencies by up to 2% in 2002. As German groups dominate the sector in Austria as well these measures may become necessary. In 2001 commissions were10% to 14% in Austrian travel agencies and in average 4% lower in Germany. As Neckermann confirms, it is planned to adapt commissions in Austria to the German level. It is also intended to increase the number of trips that customers pay directly to the provider. This method, which guarantees that 100% of the fees are paid, is already quite common in Germany but not in Austria. To find out if Austrian travel agencies comply with the new orders undercover agents pay random visits and try to bargain.

Germany, Market information - general, Travel agencies

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AUSTRIA: TUI TO GET GULET TOUROPA TOURISTIK?

Article Abstract:

The supervisory board of Austrian Airlines (AUA) is said to have taken a decision in principle to sell the company's 50% stake in Gulet Touropa Touristik (GTT) by the end of 1999. TUI of Germany is seen to be the most likely buyer, although this might involve antitrust problems, as the group would then hold a market share of more than 50%. Mr Cem Kinay, who holds 50% of GTT, has already signed an agreement with TUI on the exclusive marketing of his Magic Life Clubs from year 2000.

Asset sales & divestitures, Scheduled Airlines, Scheduled Air Transportation, Lodging & Tourist Services, Accommodation, Passenger Air Transport, Airlines, Travel industry, Austrian Airlines

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AUSTRIA: COSMOS BOUGHT BY KUONI

Article Abstract:

Kuoni Osterreich, the Austrian arm of the Swiss travel group, has acquired 75% of the stock of the Vienna travel agency Cosmos in a deal backdated to the beginning of April 1999. The Hrabac family retains 25%. Last fiscal year Cosmos generated a turnover of Sch 700mn. That of Kuoni in Austria amounted to Sch 1.6bn and in Switzerland about Sch 45bn. The two companies are active in the same fields of business.

Acquisitions & mergers, Kuoni Osterreich AG

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