The deal is the first time OTC has made serious in-roads into the European market and is part of a wide-ranging plan to seek strategic partnerships following its purchase by Travelocity last year.
Kuoni’s Swiss operation will be the first website to be switched on, with Scandanavia and the UK to follow in the coming months.
OTC has also won a deal to run a similar operation for SBB, the Swiss National Railway.
It is understood OTC clinched the deal to provide the white label functionality against strong interest from a string of other leading players in the online travel sector.
Lastminute.com group trade director Vic Darvey said: “We are delighted to have been chosen to power Kuoni’s online travel website and to have a working partnership with such a high-profile brand.
“Our agreement with the Kuoni Travel Group underlines the quality and flexibility of our systems and significantly strengthens our reputation as a major supplier of e-commerce solutions to the travel industry.”
The technology, in the form of a portal, will give Kuoni the ability to handle flights, rail, hotels, dynamic packaging, holidays, car hire and ancillary products through a single product.
Kuoni chief executive Armin Meier added: “With the online distribution market continuing to show sizeable growth, our use of OTC’s successful technology is of vital strategic importance.
“This technology will help us ensure that we can continue to swiftly and extend our leading position in this rapidly-changing market.”
Kuoni UK’s boss, Sue Biggs, told delegates at the ITT conference in Oman last week that the company was “comfortable” with its current level of 8% for online bookings and had no plans to alter its target of 15%.
The deal for OTC comes just months after signing a similar agreement with Sage Holidays. It also powers a travel white label product for supermarket giant Tesco.