A journey to paradise

Transcription

1 May 2014 exotismes and cm-cic Capital Finance A journey to paradise

2 Exotismes specialises in holidays on tropical islands, and serves almost 70,000 holidaymakers every year. Despite operating in a market badly affected by the recession and new online distribution channels, the Marseille-based tour operator is achieving double-digit growth. CEO Gilbert Cisneros told us the secrets of his success. Gilbert et Yolande Cisneros

3 exotismes and CM-CIC Capital Finance: a sunny partnership. How was Exotismes born? Gilbert Cisneros: In 1987, my wife and I were both working for travel agents, and we noticed that the only flights to tropical islands offered by tour operators departed from Paris. We therefore decided to put together packages for people in Marseille, with direct flights from Marseille to the French West Indies, La Réunion and Mauritius. The idea was successful, and we extended the concept to the entire Provence-Alpes- Cote d Azur area, the Southwest and then to the whole of France. You still specialise in island holidays... GC: This specialisation enables us to offer an unequivalent range of products in the Caribbean, Indian Ocean and French Polynesia, together with a very high level of services. In all destinations, all of our customers are met by a rep, who makes sure that everything is as announced and advises them about activities that might interest them. We only offer new destinations when we are able to offer this level of expertise. As an example, we added the Maldives destination only very recently. Competition must be tough in these highly researched destinations? GC: Yes. We operate in a very competitive segment. There are over 80 tour operators offering holidays in Mauritius. Not to mention the customers who can now organise their own holidays using the internet. However, it is precisely the internet that enables us to to make the difference. So the internet is not a threat for your business? GC: Quite the opposite! In 2009, we developed an online sales technology that instantly helps travel agents to find holidays meeting their customers requirements, identify the best value holidays, produce a detailed quotation and book holidays with just a few clicks. To maintain our leadership, we are continuing to invest in R&D. The latest functions allow agents to create «island combinations», i.e. genuinely custom-made holidays featuring multiple destinations.

4 95% of your customers are travel agents. Why do you choose to focus on the B2B market? GC: Becoming a mass-market tour operator requires very heavy investment in communication. This would threaten our business model, which aims for maximum productivity. We are very cost-conscious. For example, we currently have one of the best staff efficiency ratios in our sector. But this rigorous approach to your finances doesn t rule out acquisitions? GC: We acquired a tour operator in French-speaking Switzerland that addressed the same destinations. We also acquired VO2max, a tour operator specialising in endurance sport. These two acquisitions are perfect illustrations of the two types of targets we are seeking for the future. The first consists of companies positioned on the same products, so that we can improve our purchasing and spread our costs over a wider base. The second consists of tour operators that specialise in different geographical areas or themes, in order to diversify while maintaining our requirement for expertise. What is your relationship with CM-CIC Capital Finance? GC: We met a few years ago. We had a common view on business, and we stayed in touch. When our initial majority owners withdrew, we naturally contacted CM-CIC Capital Finance, and last August they organised the second buy-out. As a result, I now have a majority stake and the backing of a financial partner implicated in the business and who is close-at-hand. 45 % of sales online 30 % growth over 2 last years customers in 2013

5 exotismes as seen by Fabienne Mazières, CM-CIC Capital Finance. Fabienne Mazières Yolande and Gilbert Cisneros, founders of the Exotismes group, had become minority shareholders in their business. In 2013, they were looking for a local investor that could help them regain a majority stake but with one condition: maintening the company s profitability. Based on these criterias, CM-CIC Capital Finance was happy to close the deal. We were particularly impressed by Exotismes collaborative approach of governance, in which the Chairman s vision is translated into concrete targets in line with the operating environment. Gilbert Cisneros management is focused on allocating Exotismes resources to obtain a competitive advantage over the long term. Yolande and Gilbert Cisneros have a collegial approach to discussing and analysing proposals, making decisions, and realising their plans. One other main feature is its specialisation strategy and management s clear focus on one business area holidays in tropical islands in order to have a high level of expertise and to capitalise on specific skills an unique approach in the tour operator industry. CM-CIC Capital Finance is supporting Exotismes in its development to strengthen its international growth potential.

6 Edmund Hillary and Tensing Norgay s ascent of Everest in Jacques Piccard and Don Walsh s record dive in the Mariana Trench in Mermoz and Guillaumet s opening of the Andes line in The Americans moon landing in Nothing important is achieved without trust This strong conviction provides constant inspiration to CM- CIC Capital Innovation s people in their relationships with entrepreneurs. As a subsidiary of CM-CIC Capital Finance, we provide equity to high-potential technology companies in the healthcare, electronics, IT and renewable energies sectors, in France and Canada. In addition to our expertise, our success is driven by our close ties with business leaders. CM-CIC Capital Finance - Lyon Espace Cordeliers 2 rue Président Carnot Lyon Cedex 02 Tel: +33 (0) Paris - Lyon - Nantes - Lille - Strasbourg - Bordeaux - Montreal The LINKS.fr - RCS Nantes B Mai Crédits photos : Copyright 2001 British Photographers Liaison Committee/Finers Stephens Innocent As agreed by BAPLA, AOP, NUJ, MPA and the BFP - Musée Air France - Exotismes - Getty Images. Head office 28 avenue de l Opéra PARIS