MAY 2015
At Scenic we celebrate the art of wonder through travel. We offer our guests more than a holiday. We offer them an emotional connection to the world — a chance to experience wonder. LUXURY
You only stay at the best hotels and resorts. You only cruise on the most luxurious ships. You only enjoy the most distinctive experiences. Excellence is a tradition, luxury is a lifestyle.
HANDCRAFTED
Your trip has been handcrafted by one of our expert Journey Designers. We’ve travelled the globe and curated the best of the best. It’s about the skill, knowledge and care that goes into creating something handcrafted.
MAY 2015
Wholesalers feel the
squeeze walking the wild side of canada & alaska koreAn ventures hawaii says aloha hotels & apartments travel insurance
WIN
a weekend away
Australia’s only exhibition for the travel industry
DATE
YEAR
DISCOVER THE WORLD OF TRAVEL THROUGH OUR FREE EDUCATIONAL PROGRAM »
2015
› CONNECT with travel suppliers
THURSDAY + FRIDAY
16 - 17 JULY LOCATION
LUNA PARK, SYDNEY
› DISCOVER new travel products › NETWORK with industry professionals › LEARN about the future of travel
Industry Supporter
register free TRAVELINDUSTRYEXPO.COM.AU
contents
From the managing editor Bruce Piper
COVER STORY
22
wholesalers feel the squeeze
features 32 Careers 42 Canada and Alaska 50 Korea 56 Hawaii 61 Hotels and apartments 66 Travel Insurance
monthly 02 State of the industry 09 Issues and trends 28 Technology 36 Travel management 37 Cruising report 40 Industry in focus 69 Brochures 70 The last word
columns 02 06 09 15 39
Ian McMahon Steve Jones AFTA View Tourism Australia View CLIA View
www.travelbulletin.com.au Travel Bulletin is part of the Travel Daily family of publications
EDITORIAL Managing Editor – Bruce Piper bruce.piper@travelbulletin.com.au Co-ordinating Editor – Louise Wallace Ph: 02 8090 3125 louise.wallace@travelbulletin.com.au Editor at Large – Ian McMahon Ph: 03 9568 4464 or 0414 320 321 imcmahon@travelbulletin.com.au
Flight Centre general manager of product, advertising and customer experience, Keith Stanley, gave a unique insight into the ongoing relevance of travel agents during a presentation at the Mumbrella travel marketing conference last month. Stanley spoke about the major project he has led within Flight Centre as part of its vision to become a “world class travel retailer”, which includes the company’s blended strategy aiming to enable customers to book through a variety of channels. As part of the process, Flight Centre began tracking customers who booked overseas travel through its website, and decided to take the novel approach of actually phoning them. The intriguing result was that more than half of the people who had made online bookings turned out not to have valid passports or the visas required for their trips. By making contact, Flight Centre was able to help resolve problems before they arose and thus significantly improve the customer experience. Given the rise of online bookings, it would be fascinating to see how many customers are denied boarding or have issues of this kind when they attempt to depart on overseas holidays. This is an area where agents can simply and easily add significant value for their customers, just by exercising some knowledge and common sense. Stanley’s presentation also gave a glimpse of what is going on within Flight Centre. It could be said that Flight Centre – already a massive promotional powerhouse – is finally getting its marketing act together, both when dealing with customers and also on the product side. He likened Flight Centre to a department store, with the company’s product teams responsible for making sure that the items on the shelves are things that people actually want to buy. That means suppliers who want to sell through Flight Centre are likely to have to tailor product to suit – something that is already happening but is likely to become more and more prevalent. And while I’m on the subject of suppliers, this month’s issue includes an insightful cover story from regular contributor Steve Jones on the prospects for wholesalers. In the last few weeks, one of Australia’s longest-running travel operations, Beachcomber Tours, has revamped its operations to become a representative office rather than a wholesaler, with ceo Rod Eather admitting the 20-year-old company had been hit by the growing propensity for travellers to book direct. Jones looks at this and other trends affecting wholesale – including the ironic fact that more travel agents, themselves hit by direct booking patterns, are also bypassing traditional wholesalers. Enjoy!
This month’s contributors Steve Jones, John O’Sullivan, Matt Lennon, Jayson Westbury, Brett Jardine, Oliver Tams, Gary Walsh, Kris Madden, Catherine Marshall, Lee Mylne
Advertising National Sales Manager Lisa Maroun Ph: 0405 132 575 or 02 8007 6760 lisa.maroun@travelbulletin.com.au Production Co-ordinator Sarah Piper Ph: 1300 799 220 or 02 8007 6760 sarah.piper@travelbulletin.com.au www.travelbulletin.com.au
DESIGN TEAM Wendy St George, Hannah Power, Sarah Piper FINANCE Jenny Piper jenny.piper@travelbulletin.com.au 4/41 Rawson Street Epping NSW 2121 PO Box 1010 Epping NSW 1710 Australia Tel: 1300 799 220 (+61 2 8007 6760) Fax: 1300 799 221 (+61 2 8007 6769)
travelBulletin MAY 2015
1
state of the industry Another month, another Helloworld deal
Ian McMahon’s perspective
industry must act on climate change A decade or so ago, Darrell Wade, then heading the fast-growing Australian adventure tour operator, Intrepid Travel, identified climate change as a vital issue for the tourism industry. He warned that the industry was perceived to be part of the problem and that it was in the industry’s self-interest to be seen to be addressing it. Another Australian prominent on the world’s tourism stage, Tony Wheeler, co-founder of travel guide publisher Lonely Planet joined him in expressing similar sentiments through the online publication Crikey. A practical outcome was that Intrepid became one of the first tour operators to offer its clients the option of making a carbon offset payment in conjunction with their tour bookings. It was a small gesture – some might say a tokenism of dubious efficacy – but it was a positive move. In those days, of course, climate change was a hot button issue, but much has changed since then. In Australia, at least, climate change is no longer a fashionable cause. Take the carbon tax for example, which is generally identified as the trigger for the electorate voting out a deeply flawed government which would almost certainly have been dumped anyway. And in the wake of Intrepid’s
management takeover of TUI’s adventure travel companies, Wade now heads the world’s largest adventure travel company PEAK Adventure Travel. But Wade has not changed his tune. It’s just that he now sings it from a larger stage. Speaking at the World Travel and Tourism Council (WTTC) Summit in Madrid last month he said: “As an industry we don’t take this (climate change) anywhere near seriously enough. We have to face up to it.” And, of course, the science has not changed. Just two of the issues of concern to our industry are the state of the Barrier Reef and the survival of Pacific islands threatened by rising oceans. One of the problems impeding action is that the impacts of climate change are on a slightly longer time frame than electoral cycles. And as one of our former Prime Ministers has advised, politicians’ selfinterest is a good bet. However, the industry would do well to heed Wade who points out that it is in tourism’s self-interest to be seen to be taking action. “We could become a big target for governments, NGOs and shareholder activists,” he told the WTTC summit in April. To put it another way – if tourism is not willing to become part of the solution, it will be seen to be part of the problem.
Jockeying among Helloworld’s major shareholders continues, with Andrew and Cinzia Burnes’ AOT Group last month emerging with a 10% stake in the company. The acquisition sees UBS and Europe Voyager each sell another 3.5% of the company, following their previous divestment to Sintack Pty Ltd – the company owned by Consolidated Travel’s Spiros Alysandratos. The Burnes’ Helloworld shareholding now amounts to just over 10%, with the new shares purchased at 36c each and adding to the initial stake they bought from former ceo Peter Lacaze when he stepped down. Alysandratos sits on 19.57%, UBS holds 7.4%, and Europe Voyager NV still has 23.3% of the company. Interestingly, Qantas is now very much Helloworld’s biggest individual shareholder with a total of 28.91% of the company.
Cruising comes of age The oft-repeated and uniformed suggestion that Australia only gets the oldest cruise ships has well and truly been put in its place by Royal Caribbean’s announcement that it will deploy its brand new Ovation of the Seas in the region for the 2016/17 season. The mega-liner is the third Quantum-class ship and after its launch and a short time in Asia, will cruise from Singapore to Sydney for five departures. And that’s not all – Royal Caribbean chief Gavin Smith said the company would have had more cruises out of Sydney if the crowded schedule at the Overseas Passenger Terminal allowed for it. At about 350m in length, Ovation’s deployment will
business monitor ATAS ACCREDITED AGENTS 21 March 2015
NSW 957 VIC 714 QLD 645 WA 318 SA 53 ACT 53 TAS 39 NT 21 total 2974
Got something to say? We’re all ears, so share your thoughts awt haveyoursay@travelbulletin.com.au 2
travelBulletin MAY 2015
AUSTRALIAN AIRPORTS
International passenger through Australia’s major international airports – Jan 2015 Airport Passengers Passengers % of % change YE Jan 14 YE Jan 15 total 15/14 Sydney 13,030,304 13,335,237 40.2 +2.3 Melbourne 7,390,229 8,079,045 24.2 +9.3 Brisbane 4,707,174 5,000,167 15.1 +6.2 Perth 3,977,155 4,134,013 12.5 +3.9 Adelaide 824,662 963,081 2.9 +16.8 Gold Coast 869,684 875,866 2.6 +0.7 Cairns 491,660 459,734 1.4 -6.5 Darwin 339,891 309,732 0.9 -8.9 Norfolk Island 11,421 11,325 0.0 -0.8 Sunshine Coast* 8,405 10,248 0.0 +21.9 All Airports 31,650,585 33,178,448 100.0 +4.8 * Sunshine Coast operated scheduled services from July 2013-Sept 2012, June 2013-Oct 2013 and June 2014. Source: BITRE
MAIN DOMESTIC ROUTES
Top 10 domestic city pairs at January 2015 City pair
Passengers Passengers % change YE Jan 14 YE Jan 15 14/15
Melbourne-Sydney Brisbane-Sydney Brisbane-Melbourne Gold Coast-Sydney Adelaide-Melbourne Melbourne-Perth Adelaide-Sydney Perth-Sydney Gold Coast-Melbourne Hobart-Melbourne
(000) (000) 8,248.1 8,319.3 4,423.4 4,431.1 3,212.5 3,307.5 2,575.9 2,582.6 2,204.5 2,264.9 2,208.4 2,153.4 1,757.9 1,814.9 1,808.4 1,790.9 1,685.7 1,760.1 1,388.0 1,411.0
Source: BITRE
+0.9 +0.2 +3.0 +0.3 +2.7 -2.5 +3.2 -1.0 +4.4 +1.7
state of the industry follow an expansion of the Sydney Ports facility to cater for much larger vessels – proving the adage that “if you build it, they will come”.
Travel reps sweat it in Vienna These travel industry reps were all smiles before the going got tough at the Vienna Marathon last month. As part of an Austrian Airlines competition run in conjunction with travelBulletin, these four fitness fanatics travelled all the way to Austria to take part in the race – with a little sightseeing tagged onto the end of the trip. Pictured from left are Flight Centre air specialist Jess Bradley, Austrian Airlines Australia head of sales Gianni Di Stefano, Helloworld Middle Brighton manager Dina Head, and AMEX Global Business Travel manager corporate travel strategy Elinor Prevost. Prevost described the event as a once in a lifetime experience, while Head said Vienna put on a great show: “Starting a marathon with 42,000 other people and running past some of the city’s icons will be a memory that stays with me for a long time.”
SQ sponsoring NTIA ‘supper club’ The new venue for the 2015 National Travel Industry Awards at Sydney’s Darling Harbour will see a revised format for the popular ‘AFTA Party’. Rather than relocating to a new party venue after the gala dinner, this year celebrations will continue within the Pavilion which will transform into the NTIA Singapore Airlines Supper Club. “This is a new twist to how the travel industry can celebrate the best of the best on the night,” said AFTA ceo Jayson Westbury. As travelBulletin goes to print the NTIA voting has completed and we, along with the entire industry, await the list of finalists with bated breath. However we can proudly reveal that travelBulletin editor Louise Wallace has made the cut and is in the running for the Best Travel Writer award this year.
Air NZ to fly to Houston
Air New Zealand’s Pacific Rim growth world of new tourism experiences”. aspirations continue, with the carrier set to UA will codeshare on the Air New Zealand launch direct flights between Auckland and flights, and tickets are expected to go on Houston in December this year. It’s going to YEAR ENDED JANUARY 2015 sale this month. be a busy period for the carrier which is also Chart I International Carried Aires (thousands) - January 2013 to January 2015 set to debutPassengers its new Buenos route in the same month. 1950 OUTBOUND Houston is a key hubINBOUND for Air New Zealand’s 1700 American ski giant Vail Resorts has made Star Alliance partner United Airlines (UA), its first ever international acquisition, with with NZ ceo Christopher Luxon enthusing 1450 a $176.6 million agreement to purchase that the city offers customers “direct access 1200 Australia’s largest ski area. Perisher Ski into the heart of the American south and a
Resort, which comprises Perisher Valley, Smiggin Holes, Guthega and Blue Cow, had been on the market for some years and the Vail acquisition is set to be transformative for the iconic operation. Vail has a two-pronged strategy; as well as expanding its portfolio across the globe, the company hopes to entice Australian skiers to visit its resort portfolio across the
US group buys Perisher Valley
Continues over page
950
business monitor
Jan-15
Dec-14
Oct-14
Nov-14
Sep-14
Jul-14
Aug-14
Jun-14
Apr-14
May-14
Mar-14
Jan-14
Feb-14
Dec-13
Oct-13
Nov-13
Sep-13
Jul-13
Aug-13
Jun-13
Apr-13
May-13
Mar-13
Jan-13
Feb-13
700
DOMESTIC AIR MARKET – January 2015
International Air Market Share
Chart II
International passengers by major airline – year ended January 2015
International Passengers by Major Airlines - Year ended January 2015 Qantas Airways, 15.8% Others, 26.3%
Emirates, 9.7% Thai Airways International, 2.4%
Singapore Airlines, 8.7%
AirAsia X, 4.2% Malaysia Airlines, 4.3% Cathay Pacific Airways, 4.9% Air New Zealand, 7.4%
Jan Jan 14 15 4.84m 4.67m 5.84bn 5.62bn 7.61bn 7.43bn 76.7 75.6 51.9 51.4
Virgin Australia, 7.8%
Growth (%) -3.6 -3.8 -2.4 -1.1* -1.1
Yr to Yr to Growth Jan 14 Jan 15 (%) 57.68m 57.34m -0.6 67.95bn 67.64bn -0.5 88.82bn 88.79bn +0.0 76.5 76.2 -0.3* 644.9 640.8 -0.6
Source: BITRE * Percentage points
Domestic On Time Performance – February 2015
Departures on Time Arrivals on Time Cancellations No. % No. % No. %
Jetstar 4,855 Qantas 7,885 QantasLink 8,260 Tigerair 1,371 Virgin Australia 8,970 All Airlines 37,860
Jetstar, 8.4%
Source: BITRE Table I
Total pax carried Revenue pax kms (RPK) Avail seat kms (ASK) Load factor (%) Aircraft trips (000)
84.0 4,911 84.9 90.1 7,720 88.2 88.0 8,095 86.3 83.0 1,340 81.2 91.6 8,730 89.2 88.9 37,057 87.0
51 88 145 18 148 525
0.9 1.0 1.5 1.1 1.5 1.2
Source: BITRE
International Passengers by Uplift/Discharge City Pairs (a)
Foreign
Australian
Port
Port
Year ended
Year ended
Year ended
% of
% Change
January 2013
January 2014
January 2015
Total
2015/14
travelBulletin MAY 2015
3
state of the industry Continues from previous page USA, with season passes at Perisher also providing skiers access to these properties at no extra charge. Australian skiers are avid travellers and also tend to visit overseas resorts in off-peak periods. Vail Resorts CEO Rob Katz said the deal was part of a strategy to “drive season pass sales and build loyalty with guests from around the world”.
Qantas resumes Perth-Singapore service Corporate travellers and consumers alike in Perth were dismayed last year when Qantas announced the suspension of flights to Singapore, meaning the carrier no longer operated any year-round international services out of the Western Australian capital. Newly appointed QF International ceo Gareth Evans has now reversed the decision, with Boeing 737 flights to debut in June with five weekly return services. The new aircraft type will make the route “economically viable,” Evans said.
Agent input wanted for NDC AFTA member travel agents are currently taking part in a global process to help guide the development of IATA’s so-called New Distribution Capability (NDC). AFTA and a range of other travel agent associations across the globe have been invited to engage their members in a study aimed at getting views on “how you search and sell airline products today, and what you would consider beneficial in the future”. Independent consultants Atmosphere Research Group and T2Impact have created
the study and will collate the anonymous data to produce a comprehensive report which is likely to be available later this year – certain to be interesting reading.
Australia’s biggest salary survey
HEADLINES
While we’re on the subject of surveys, in an upcoming edition of travelBulletin we will be providing an in-depth analysis of employment and salaries in the Australian travel industry. The Travel Daily Group commissioned Stollznow Research to carry out the study which is expected to be the most comprehensive report on the topic ever after an exceptionally strong response from readers of Travel Daily, Cruise Weekly and Business Events News as well as travelBulletin.
AirAsia X clears the slate FIVE months after AirAsia X abruptly cancelled flights from Australia to Bali last year, the budget airline has vowed to “expediently process” valid claims for out of pocket expenses for affected customers. The move follows a slap on the wrist from the Australian Competition and Consumer Commission (ACCC) which launched an action against the airline earlier this year following a “number” of consumer complaints. Following ongoing discussions with the ACCC, AirAsia X last month published a notice on its website advising customers affected by the cancellation of its canned MEL-DPS and ADL-KUL services to lodge a claim by the end of June. The airline also assured it had now put “systems” in place to prevent a repeat of such blunders.
23 Mar Rocky Walshe China deal 24 Mar ACCC proposes blocking Qantas, China Eastern pact 24 Mar Air NZ, Air China launch JV 25 Mar Qantas plans charm offensive 26 Mar Kayak set for local push 27 Mar Enterprise into Australia 27 Mar Garuda’s European route 30 Mar Helloworld site solution 30 Mar Local cockpit policy push 31 Mar Qantas revises fares 01 Apr GSR sold to private equity 02 Apr Air NZ/CA ‘mono’ effect 02 Apr Wotif price grid fade out 07 Apr Crowne vs Crown battle 08 Apr Kenya OK – wholesalers 09 Apr GA’s “5-star” Europe route 09 Apr China portal opens up Oz 13 Apr Govt insists ACCC rethink 14 Apr italktravel now national 14 Apr OTAs failing in conversion 15 Apr Scenic Tours to rebrand 16 Apr Air NZ to fly direct to Houston 16 Apr WTAAA targets fuel levies 17 Apr TTF, pilots back QF/MU JV 20 Apr AFTA to survey agents on NDC 20 Apr Travel Daily group launches Aust travel industry salary survey 20 Apr Beachcomber Tours to shut 20 Apr Emirates to extend QF JV 21 Apr AirAsia X reimbursements 21 Apr Helloworld secures RACT
business monitor
Week ending 28/03/15 ranked by visits Rank Company
Market share
W/E 28/03/15 W/E 28/02/15 W/E 31/01/15
1 2 3 4 5 6 7 8 9 10
Webjet 13.26 Expedia 9.88 Wotif.com 9.33 Flight Centre 7.69 Skyscanner Australia 6.36 5 Lastminute.com.au 4.32 au.edreams.com 1.95 CheapOair 1.48 FareCompare 1.47 Cheap Flights A&NZ 1.44
Rank 1 2 3 4 5 6 7 * 8 *
* Not in top 10 Source: Experian Hitwise Australia – www.hitwise.com.au
4
travelBulletin MAY 2015
Rank 1 2 3 4 5 6 7 10 8 *
SHARE PRICES
INTERNATIONAL AIR
INTERNET AGENCY MARKET SHARES
21 April 2015
Top 10 city pairs (at January 2015) Flight Centre FLT
$41.12
Helloworld HLO
$0.37
Auckland-Sydney 1,441,096 1,490,107 4.5 +3.4 Singapore-Sydney 1,371,326 1,362,065 4.1 -0.7 Singapore-Melbourne 1,106,354 1,143,519 3.4 +3.4 Auckland-Melbourne 989,988 1,048,423 3.2 +5.9 Singapore-Perth 1,026,517 1,035,149 3.1 +0.8 Auckland-Brisbane 877,242 920,186 2.8 +4.9 Hong Kong-Sydney 925,606 919,356 2.8 -0.7 Los Angeles-Sydney 901,173 900,171 2.7 -0.1 Kuala Lumpur-Melbourne 805,307 896,137 2.7 +11.3 Denpasar-Perth 860,778 881,107 2.7 +2.4 Top 10 city pairs 10,305,387 10,596,220 31.9 +2.8 Other city pairs 21,345,198 22,582,228 68.1 +5.8 ALL CITY PAIRS 31,650,585 33,178,448 100.0 +4.8
Webjet WEB
$4.10
Disruptive Investments DVI
$0.13
Source: BITRE
City pair
Passengers YE Jan 14
Passengers YE Jan 15
% of % change total 14/15
Qantas QAN
$3.33
Virgin Australia VAH
$0.527
Ardent Leisure AAD
$2.11
Air New Zealand AIZ
$2.79
Auckland International Airport AIA
$4.60
Sydney Airport SYD
$5.385
Corporate Travel Management CTD
$10.92
Cover-More Insurance CVO
$2.20
Regional Express REX
$0.99
Sealink SLK
$2.58
EUROPE BY CAR ST INCLU O M
IVE OFFE DR
E SELFSIV
World’s No:1
Discover Europe in 2015 at your own pace in a brand new Renault
R
★★★★★
FULLY INCLUSIVE OFFER
RENAULT
2015
FULL VEHICLE INSURANCE WITH NO EXCESS IN 42 COUNTRIES Includes: punctured tyres, lost or stolen keys to your vehicle and fuel inversion.
EURODRIVE Travel with peace of mind
Driver’s age 18+ No Upper Limit!
For more information, please contact
t1300 55 1160
www.renaulteurodrive.com.au
Steve’s Say
politics pinching cruise progress By Steve Jones Another month, another “game changing” development in the cruising sector. It’s hard to keep up. And that’s the problem. Authorities are not keeping up. In mid-April, Royal Caribbean announced that Ovation of the Seas will operate a series of voyages from Sydney between January and April 2017. Currently under construction in Germany, Ovation will be the cruise line’s third Quantum class vessel, and the largest liner to sail in local waters. The growth of Royal Caribbean has been rapid since it opened its local office in 2009 – growth that has been mirrored in the overall cruise market, with Carnival, and others, similarly expanding their capacity. And ever since that boom began, the cruise industry has been involved in a dialogue with authorities over how Australia can capture and exploit the economic benefits of future growth. The problem is, that dialogue has achieved next to nothing. That’s not to imply criticism of Carnival Australia chief executive Ann Sherry who has worked tirelessly, if fruitlessly, to convince
politicians of the need to improve Sydney’s port infrastructure. So too the local boss of Royal Caribbean, Gavin Smith. But, by and large, a long term solution to the capacity squeeze is as far away as it has ever been. As I see it, there are two major factors holding back progress.
long term solution to ‘the...acapacity squeeze is as
’
far away as it has ever been
The first is the cruise industry’s failure to present a united voice. Garden Island, the favoured option for all concerned, is simply not going to happen. But Carnival and Royal Caribbean can’t agree on where else to construct new facilities, with Carnival favouring a Sydney Harbour solution while Royal Caribbean has pushed for the less glamorous Botany Bay. The second reason is a simple reluctance of politicians to approve anything involving significant amounts of money that does not involve education, health, or any other domestic issue.
Clearly there are logistical issues. But if there was a genuine will, there would be a way. And that is the bottom line. There simply is no political will. Still on cruising, Royal Caribbean has taken the marketing battle to Carnival in recent weeks with a multimillion dollar advertising push. But part of its promotional activity may have backfired. The cruise line partnered with Channel Seven for what will surely become an example of how not to produce branded content – content which is paid for by a brand but dressed up as genuine entertainment. The program, Tom, Rach and Rosso Go Cruising, saw three celebrities experience facilities on board Voyager of the Seas. It awkwardly captured what passengers can expect, was watched by 571,000 people – and was awful viewing. That wouldn’t have mattered had it not drawn the ire of ABC’s Media Watch program, seen by 667,000 city viewers. The show saw host Paul Barry castigate the program as an “hour long advert” before dragging up health issues that befell the cruise line as far back as 2012. A harsh lesson in how a different approach to advertising can have unexpectedly negative side effects.
Airolo, Tremola,Ticino
Grand Tour of Switzerland.
From glaciers to palms, from buzzing cities to enchanted hideaways: explore Switzerland’s breathtaking variety along one inspiring route. MySwitzerland.com/grandtour
UK & E UropE T oUrs WINTER 2015 / 16 + SUMMER 2016
10%
EARLY BIRD SAVING
BOOK & PAY IN FULL BY 30 JUNE 2015
15 NEW TOURS
Charming Waterways of France | Discover Portugal | Magestic Morocco | Baltic & Russian Explorer | Norway: Fjords & Glaciers | Turkey Gulet Sailing + MORE With a maximum of 18 passengers, we offer a more personalised experience, and provide a relaxed and flexible form of touring.
Unlike large coaches, our mini-coaches can go almost anywhere a car can. Access the smallest town squares, country lanes and medieval villages.
Scenic Back Roads, Not Freeways
Leisurely Paced Itineraries
Charming Accommodation
Maximum Group Size of 18
Authentic Local Experiences
Culinary Experiences
*Terms & Conditions apply. For more information, please visit www.backroadstouring.com
P: 1300 100 410 | E: info@backroadstouring.com.au | www.backroadstouring.com
ISSUES & TRENDS
Concerns mount over new SA visa laws After great debate and an eight month delay, South Africa’s new laws for travellers under 18 remain unchanged, with new restrictions implemented by the South African Department of Home Affairs set to come into effect next month. As of 1 June, all visitors under 18 years of age who are travelling with both parents must provide an unabridged birth certificate to enter the country. Minors travelling with a single parent must also carry an affidavit from the other parent, a court order granting full parental responsibilities, or a death certificate of the other parent. Additional paperwork is required for minors travelling without an adult. The new laws, which came into effect in October last year and were later delayed until next month, have ignited concerns from tourism partners who fear the additional paperwork will hamper tourism and see international visitors travel further afield to competing destinations such as Tanzania and Kenya. The Department of Home Affairs acknowledged their concerns by delaying the onset of the new laws and allowing the industry to provide feedback to the changes. But after an eight month consultation period, the laws remain unchanged, with the South African High Commission telling travelBulletin that the legislation – as it was mapped out last year – will come into effect from 1 June. South African Tourism country manager for Australasia Lalie Ngozi told travelBulletin that the laws have been met with “apprehension” by industry partners. “The obvious concern is that people who aren’t willing to do all of this extra paperwork will select a competitor destination,” she said. Branding it as a “difficult topic”, Ngozi said it was unknown whether the tourism industry would be bruised by the laws, but conceded it was a “positive and necessary step” to introduce the changes. “If South African security has identified the need to protect children, it’s within their interest to exercise some form of control. As much as it looks like an inconvenience, it’s a step in the right direction,” she said. A far cry from previous regulations which required only a passport for all travellers, the new legislation will not be taken lightly, and airlines will be unable to check-in travellers who fail to present adequate documentation. South African Airways issued a statement last month claiming that the airline is working to ensure people are “fully aware of and prepared for the changes”. Qantas echoed much the same sentiment, but told travelBulletin that the visa changes were unlikely to cause disruptions. “We don’t believe the visa changes will have a significant impact on customers travelling on Qantas services between Australia and South Africa, with forward bookings looking strong,” the airline said.
AFTA view Jayson Westbury, chief executive AFTA
ndc report in the pipeline In this fast paced, ever evolving world of the travel industry, technology sits at the centre of everything we do. Technology providers within the travel industry have many factors impacting upon their ability to present the latest and greatest offers to all players within the industry, and it is a competitive environment. The term ‘technology providers’ goes well beyond the GDS, particularly as travel agencies look to enhance their own online or web-facing environment and transact in many channels. All of these technologies are attempting to present travel companies with the best and most efficient user-friendly environment, and it is expensive for travel companies to consider changing. If not only for the training costs involved, there is the stress and concern that comes from staff with any change, much less the notion of a change of technology that can have a material impact upon the company. I say this by way of background to the work that AFTA is undertaking along with the travel agency associations from Spain, the UK, USA, South Africa, New Zealand, India, Canada and Brazil in conjunction with IATA on the New Distribution Capability (NDC) that has now been on the industry’s agenda for four years. The agency associations in conjunction with IATA have commissioned a study which will survey the global agency community on the things that concern agencies when new technologies are being proposed. At the end of the survey process, a report will be presented. It is hoped that this work will help all stakeholders from the GDS, travel companies, airlines and other technology providers to understand what is on the mind of the agency community when proposals are brought forward under an NDC environment. This is a significant study as it covers many countries and will canvass the views of agencies of all sizes and categories across leisure, corporate, wholesale, consolidators, OTA’s and anyone in the middle. The NDC has significant potential if completely implemented across the industry, but it is yet to be seen if what is proposed can be delivered. However, as with all new technologies, the industry must fully explore all of the possibilities before us, as anything else would be to just stand still. Importantly, GDSs will have a very big role in the future of technology solutions for travel agents. They are the gateway to much more than just airline sales, and the enhancements that all GDSs have made over the years will remain important to the agency community as the NDC concept becomes more of a reality. As an important part of this process, AFTA travel agents will have taken part in this global study and we will be able to explore and consider the findings once the report is published. It is set to be released in June and I can’t wait to see the outcome.
NDC ‘hasThesignificant
potential if completely implemented...
’
travelBulletin MAY 2015
9
issues & trends
Flight Club king hits the market Flight Centre’s latest sales tactic may reek of the iconic 90s movie starring Brad Pitt and Edward Norton, but as Flight Centre general manager of customer experience Darren Wright explains, there is one fundamental difference: “The first rule of Flight Club is that everyone is talking about it.” Rolled out late last month, the initiative sees a selection of competitive deals posted to the Flight Centre website every Friday with a limited booking window of 10am-12pm. New deals such as domestic and international airfares, cruise packages with free upgrades, and all inclusive holidays are uploaded each week, with a two hour booking limit for simple products. Complex bookings such as combined land, air and cruise packages have to be redeemed at a retail Flight Centre outlet by close of business on the same day. Dubbed Flight Club, Wright told travelBulletin that playing on the title of the Fight Club movie was just too good to pass up. “We laughed about it at first and then figured it was a great way to position the concept,” he said. Discussing the initiative in more detail, Wright explained that Flight Club was part of a marketing initiative to boost traffic to the website when movement was at its slowest. “We’re trying to move consumer behaviour into channels that aren’t so highly trafficked and our analytics show traffic flows are slowest from 10am-12pm on Fridays. We saw it as a perfect time to draw people into the site,” he said, adding that the marketing team acted swiftly. “We figured that launching now was better than later, it’s as simple as that.” While the initiative is primarily tailored to consumers, Wright said consultants were also likely to see a spike in traffic from consumers looking to secure complex bookings in-store.
The strategy is tried and tested in the eyes of Wright, who has rolled out similar concepts in previous roles with Virgin Blue, Air Asia and Scoot Airlines. And he’s confident it won’t step on the toes of Flight
While some people ‘think retailers don’t offer
an incentive, we think an initiative with competitive deals in the $2000-$3000 break in market will get consumers to move
’
Punching above his weight? No way! Darren Wright says playing on the title of the film Fight Club was an opportunity too good to pass up.
“We want to drive traffic to the website, but we also want it to translate to bookings in our retail stores,” he said, stressing that all deals are exclusive and cannot be booked via any other Flight Centre channels. Wright conceded that consumers were often slow to commit to travel bookings and there was a “possibility” that they would be reluctant to physically act on an impulse. But he remained confident that the Flight Club deals would be too good to pass up. Tight booking deadlines would also add a “surprise” element to spur people into action, he added. “While some people think retailers don’t offer an incentive, we think an initiative with competitive deals in the $2000-$3000 break in market will get them to move. Hopefully we’ll be encouraging Australians to get off their backsides and book something,” he said.
Centre’s day to day business: “We see it simply as an opportunity to grow the business and to make more sales.” Wright claimed ownership of the strategy, stressing that there was no pressure from suppliers to roll out an initiative in a last ditch effort to offload surplus stock. He also shrugged off suggestions that Flight Club was Flight Centre’s answer to the industry’s culture of discounting. “Consumers aren’t only concerned with discounting, it’s more about value. Many of the Flight Club products may be heavily discounted but others just offer a better value proposition – it’s not always based on price,” he said. Describing Flight Club as a “work in progress”, Wright said the incentive was an unknown for Flight Centre. But with the ability to respond quickly to market demand and push the initiative via Flight Centre’s well developed social media channels, he’s confident it will make waves in the industry.
Don’t get left behinD subscribe to
10
travelBulletin MAY 2015
Only $50 a year (less if you’re an agent!)
issues & trends
Scenic rolls out sleek new look Scenic Tours has ditched part of its name and rebranded as Scenic, as the Australian travel company looks to position itself as a leader on the global stage. While the new name is hardly removed from the old, the company logo has been completely overhauled, with the yellow globe replaced with a sleek black and gold logo, completed with a ‘degree’ symbol. Explaining the specifics to travelBulletin, Scenic general manager sales and marketing Michelle Black said the black and gold logo followed an extensive design process with the aim of incorporating traditional elements with a new look. “We wanted to keep some brand heritage, so we took the globe from our previous logo and evolved it to the degree symbol which symbolises circumnavigation to the nth degree,” she said. First floated in late 2013, Black said the repositioning had been a long time coming and was part of a broader strategy to “revitalise” the brand which was first founded in 1986 as a domestic coach touring operator. “We [rebranded] so that we could design more than a logo. We redesigned a way of
Join Phoenix Miles for free
72-hour Visa-free Transit in Beijing
thinking about ourselves so we can start to position the brand as a true global player,” Black said, adding that the company now distinguished itself as a five-star global
travel company. “Our brand image now better represents our luxury travel offering.” Black dismissed any concerns as to how the shift would be received, describing the response from agents, guests and business partners in the days following the initial announcement as “overwhelmingly positive”. “It just makes sense,” she commented. Scenic chairman Glen Moroney branded the shift as a “new era” for Scenic, with the company now aligning itself as a river cruising specialist rather than a coach tour operator. “We’ve learnt so much about our business… and we now have a much clearer idea of our mission,” he said. “But at
heart we are still very much the same – a travel company with a passion for sharing our expertise in order to create lifetime memories for our guests.” Next year is shaping up to be one of
Our brand image now ‘better represents our luxury travel offering ’ the biggest on record for Scenic, with the company launching ships in three new destinations. Scenic Spirit will launch in the Mekong in January, followed by Scenic Azure on Portugal’s Douro River in April and Scenic Aura on the Irrawaddy in Myanmar in September. “This is the most diverse year for Scenic in terms of new destinations [and] we have an extensive communications plan in place to ensure that agents feel like they are a part of our journey, and confident they can talk about the new Scenic brand,” Black concluded.
2015
NATIONAL TRAVEL INDUSTRY AWARDS
DOCKSIDE PAVILION, DARLING HARBOUR SATURDAY 18TH JULY Hosted by media personality Andrew Daddo Sponsored by Dubai Tourism MAJOR SPONSOR
ISTS L A N FI D NTIA OUNCE ANN H MAY TIA 13T .com.au/N .afta www
GOLD SPONSORS
SILVER SPONSORS
LUCKY DOOR SPONSORS
MEDIA SPONSORS
SUPPER CLUB SPONSOR
For More Information W www.afta.com.au E ntia@afta.com.au T 02 9287 9900
issues & trends
tourism aus view John O’Sullivan, MD Tourism Australia
long road ahead for 2020 targets It was only after sitting down to begin writing this column that it occurred to me that it’s been more than a year now since I took on the top job at Tourism Australia. It’s been an eventful and productive 12 months, but I’m under no illusions that there’s still lots more to be done if our industry is truly to achieve its full potential. International arrivals and spending are both at record levels, growing at around 8% per annum, which by any standards is no mean feat. However, if we are to achieve even the lower end of our industry’s shared Tourism 2020 goal, we need to do more. In fact, to achieve our international ‘low growth’ spend target of $115 billion by 2020, we need average growth of at least 10% each year between now and the end of the decade. That’s the challenge Tourism Australia and the industry faces and one we have to deliver in an increasingly competitive global landscape, with up to 190 other destinations all vying for their own slice of the tourism pie. So, can we achieve this ambitious goal our industry set itself in 2009? And, if so, how are we going to deliver that double-digit annual growth between now and 2020? The good news is we have a great, saleable product. Fundamentally, ours is a destination with enormous appeal – assets such as our world-class natural beauty, great food and wine, and welcoming people. But all of this is only a competitive advantage if it can be successfully converted into more visits, particularly from high yielding visitors likely to stay longer, travel deeper and spend more. Our focus has to be on ensuring we are investing in areas that will drive increased spend and conversion. This means targeting and, if necessary, redirecting our marketing resources towards those international markets that present the best growth prospects, such as China and the USA. It also means targeting higher yield travel segments, and as such, business and major events will also be a focus for us in the coming financial year. Our marketing communications and partnership activities must engage and inspire consumers to take the next step. This means conversion and ensuring all
our marketing activities are linked to a distribution partner. Being connected across all the touch points that consumers use in booking their holiday is critical. We will continue to invest heavily in digital, but not at the expense of traditional distribution channels which remain important in many of our markets. One of the exciting initiatives we
‘
Fundamentally, ours is a destination of enormous appeal...
’
have planned for the coming months is the relaunch of our Aussie Specialist Program, providing an improved online platform to engage with travel agents and drive yield. Look to also see us extend some of our key airline partnerships in the coming months. We’ll also be targeting and hopefully signing some exciting new partnerships from non-travel sectors – financial services and technology providers, for example – which will help drive an increase in international tourism expenditure. Another example of making our marketing more conversion-focused is the recent revamp of Australia.com. The new site has been designed to make it simpler for people to plan and book travel to and through Australia. But, importantly, the design also makes it easier for us to work with our commercial partners, using stronger data analytics, to test and learn what works best for ourselves and our partners. Inspiring and engaging with consumers through great marketing campaigns – such as Restaurant Australia – will still be at the heart of what we do, with a much bigger focus on social and digital as we follow the channels today’s consumer is using to plan, book and share their holiday experiences. But as we hit the halfway point in our Tourism 2020 journey, and move into the important phase of seeing the results, our focus has to shift more towards driving conversion and yield through effective and sustainable partnerships. travelBulletin MAY 2015
13
jobs in travel, hospitality & tourism
50%
growth month on month job seekers set up job alerts now & find your perfect next job employers reach a targeted audience of industry experts for as little as $155 www.jito.co post a job
join network
view jobs
changing the face of how we connect
issues & trends
strong line-up for 2015 travel expo This year’s Travel Industry Exhibition is shaping up to be a big one, with over 500 pre-registered attendees already on the list two months ahead of the annual show on Thursday 16th and Friday 17th July. Now in its second year, the exhibition will again run ahead of the National Travel Industry Awards (NTIAs) but with an additional day between the two events to allow attendees more time to prepare for the industry’s night of nights on 18 July. Speaking with travelBulletin, portfolio director David McCarthy said interest was tracking “well above” last year’s event, with a strong spike in interest from industry partners. Over 85% of the exhibition space has already been sold out, he added. McCarthy conceded that there was “a lot to be learned” from the inaugural showcase last year, and added that a series of changes have been incorporated to this year’s line-up following extensive research and feedback. “There were many lessons to come out of last year’s show which we have taken onboard. For instance, it was a simplistic idea for us to run last year’s show on the same day and location as the NTIAs. It
made sense to us, but we didn’t realise the majority of visitors were getting ready for the awards,” he said. Originally slated to take place at the Glebe Island temporary exhibition facility, event organisers made the decision to change
the venue to Luna Park back in March. It’s a decision that’s been well received, according to McCarthy. “We saw the need to make transport and access as easy as possible following last year’s event and after signing a few other shows with Luna Park, it seemed like a perfect fit,” he said. Luna Park will be closed during for the event which will also include a special celebration on the Thursday evening (watch this space)! Other changes to the 2015 line-up include a stronger focus on the educational program, more keynote speakers, and more networking opportunities. A session on social media is also on the agenda, along with presentations from TripAdvisor, AFTA, a Facebook representative, and the Department of Foreign Affairs and Trade. Details on more networking functions are set to be released in the coming weeks. With “no plans” to run the Travel Industry Exhibition independently of the NTIAs in the future, McCarthy said next year’s event would again run in July ahead of the industry’s big night. travelBulletin, Travel Daily, Cruise Weekly and Business Events News are proud to be the official media partners of the show.
EUROPE RIVER CRUISING
2016 BROCHURE OUT NOW! FLY FREE TO EUROPE* ALL-INCLUSIVE LUXURY EUROPEAN JOURNEYS � INCLUDED – Unparalleled Royal Invitations on selected cruises, exclusive to APT^ � EXCLUSIVE! APT’s spacious Twin-Balcony Suites on selected ships#
EXCLUSIVE! Twin Balconies in selected suites#
EXCLUSIVE! Tour & Banquet at Namedy Castle^
EXCLUSIVE! Vienna City Palace Concert^
EXCLUSIVE! Majestic Imperator Train journey^
� INCLUDED – All tipping, airport welcome, transfers, Wi-Fi on ship and port charges � INCLUDED – All meals and beverages on board, served at your discretion† � INCLUDED – All locally-guided sightseeing, shore excursions and entertainment
ORDER YOUR FREE BROCHURE & DVD TODAY
CALL 1300 278 278 www.aptgroup.travel
*Conditions apply. Offers are strictly limited and available on select itineraries, suites and departures and may be withdrawn at anytime. All offers are available for new bookings only and are valid until 31 July 2015 unless sold out prior. All Fly Offers are based on wholesale airfares in economy class with Singapore Airlines (or an airline of APT’s choosing) and are subject to availability of airline booking class. If the airline booking class is unavailable surcharges will apply. Flights must be booked by APT. Airline schedules are subject to change without notice and APT is not liable for any additional costs incurred due to airline schedule changes. A non refundable deposit of $1,000 pp is due within seven days. A second deposit of $2,000 pp is due by 31 October 2015. Final payment is due 100 days prior to departure. All air is ticketed upon receipt of the first deposit. Any changes made after ticketing, may incur an amendment or cancellation fee. FLY FREE INCLUDING TAXES: Includes air taxes up to the value of $950 pp, which may vary for each departure point and airline. †Complimentary beverages exclude French Champagne, premium spirits and selected wines. #Selected suites only. ^Selected tours only. Australian Pacific Touring Pty Ltd ABN 44 004 684 619. ATAS accreditation # A10825. APT2320
18 & 19 August 2015 Luna Park - Sydney Australia
TourismandTravel.com.au
DANIEL HOUGHTON Global Chief Executive Officer Lonely Planet (USA)
ANNE MADISON Chief Communications Officer Brand USA
STEPHEN ATTENBOROUGH Commercial Director Virgin Galactic (UK)
SAM MCDONAGH Country Manager Airbnb
SHANE O’HARE Senior Vice-President Marketing Etihad (UAE)
Where Australia’s tourism and travel industry meets.
issues & trends
Celebrity cruising a Dream
Celebrity chef Alastair McLeod and Hilary Weir
The appeal of cruising is rubbing off on Aussies as they get a taste of the good life, but throw a celebrity host in the mix, and life aboard becomes even more sexier to Australian travellers. Holidaying with celebrities in iconic destinations ticks all the right boxes for obvious reasons, and yet the concept is relatively new in Australia, spearheaded by Dream Maker Travel director Hilary Weir in Brisbane. What started as an unlikely idea in the late 90s came to fruition about ten years ago when Weir floated the idea with a close friend who was also a local radio celebrity. Weir recalls how she just “fell into it” and found herself planning a European coach tour for her friend Greg and 40 loyal radio listeners. “I knew it was a great idea, so I planned a tour and he advertised it on the station. It was a massive hit, so we just ran with it and did different tours together year after year,” she recalls. But a fluke meeting with cricketing icon Ian Healy was where the idea really took shape and set the wheels in motion for the biggest challenge of Weir’s career. Bumping shoulders with Healy at a local business seminar, the pair immediately hit it off and talk of a celebrity cruise charter led by Healy made its way into the conversation. 16
travelBulletin MAY 2015
Confident of the potential, he was easily swayed and Weir moved quickly to charter a full ship, putting her house on the line. She still recalls the sleepless nights that followed, but managed a sell out sailing of 160 passengers following an extensive radio campaign.
work closely with her on group allocations. They were also strong supporters when Weir established a separate charity business in 2013 to help raise funds for celebrity chef Matt Golinski who sustained burns to over 40% of his body in a home fire in 2011. Inspired by the national fundraising
Healy has been the perfect cruise host – he helps to ‘promote the tours and enjoys spending time with guests onboard... He is the key to my success ’ With a stellar start to the business partnership, the pair wasted no time planning the next venture and soon set sail for the second celebrity cruise just 18 months later in the Mediterranean. A Spain and Portugal voyage is also lined up for September this year, with a fourth venture from Monte Carlo to Paris next year. “Healy has been the perfect cruise host – he helps to promote the tours, enjoys spending time with guests onboard, and is willing to work closely with me. He’s the key to my success,” she says. After proving her worth with a number of full charters, major cruise lines became more willing to give Weir a chance, and to
initiative, Plates for Mates, the idea came to Weir at a charity function dedicated to Golinski’s recovery, led by a team of celebrity chefs. Keen to play on her strengths to help Golinski’s cause, Weir floated the idea of operating a cruise hosted by celebrity chefs who were keen to pledge their support. “I told them we could donate a percentage of the profits of each cruise and they jumped at the chance,” she recalls. “They didn’t take much convincing.” Word spread quickly and celebrity chefs Alastair Mcleod, Gary Mehigan, George Calombaris, Manu Feidel and Janelle Bloom jumped onboard to support Golinski. But while there was little doubt that the idea was
issues & trends a crowd pleaser, Weir had trouble selling the cruises at first. “It was a brilliant idea but the 30-50 year old target market doesn’t have the sort of income that retirees do – they’ve got kids at school and mortgages, so we had trouble converting them,” she recalls. Bookings did eventually filter through and Weir developed strong ties with celebrity chef Alastair McLeod who has since hosted three Dream Maker cruises. But for Weir, the stand out was having Matt Golinski board one of the cruises during his recovery. “Seeing the chefs reunite with their friend Matt at the dock made everyone cry and I felt like I had made a dream come true. That’s why I’m in the business,” she says. Weir says being brought up in a missionary family was what attracted her to escorted touring from a young age, but she concedes that chartering and group allocations are risky business. “If it was easy, everyone would be doing it,” she says. Aside from the financial risks, celebrity cruises involve ongoing relationship building and organisation, long hours under sustained pressure, and tenacity to keep going when bookings are lean, she says. Certainly, Weir has learned many lessons “the hard way” and not everything has gone
Helen and Ian Healy pictured with Helen Weir and her husband Keith Arnold. The group are preparing for the third celebrity cruise in September this year.
to plan, such as this year’s Canada and Alaska group allocation which secured only 20 bookings. She admits that marketing has long been her downfall as traditional methods change, but business nous and strong partnerships have seen her through, now averaging around six celebrity cruises per year. And having
just signed an exclusive distribution deal with Worldwide Cruise Centres to wholesale the packages out to agencies, business is looking up. “I generally build tours and then pray a lot, so this deal is the answer to my problem and I can focus on what I do best – building great celebrity hosted tours,” she says.
issues & trends
Vanuatu recovery makes headway
Holiday Inn Port Vila remains closed for up to six months while reparations continue.
Two months after Cyclone Pam battered the Pacific archipelago, recovery efforts are well underway. The category five system left its mark in March, claiming the lives of 11 people and leaving around 75,000 homeless. The cyclone also left Vanuatu’s tourism industry in tatters, with flight and cruise cancellations confirmed immediately after the cyclone, ground operators temporarily ceasing operations, and dozens of properties closing their doors for reparations. Blue Pango Motel in Port Vila remains closed until “further notice”, Holiday Inn Resort Vanuatu will remain closed for up to six months, Surfside Vanuatu will rebuild over the coming months, and Iririki Island Resort is expected to remain closed until early December. Further north in Tanna, 16 properties have closed their doors with
Vanuatu relies on the ‘tourism dollar so repairs to
a lot of resorts and activities were swiftly undertaken
’
openings staggered between July 2015 and January 2016. A number of tours and activities in Port Vila and Tanna are also closed until “further notice”. But while some resorts and businesses in Port Vila sustained significant damage, Vanuatu Tourism Office’s Australian representative Anne Morris told travelBulletin that recovery efforts have moved quickly to minimise the impact on tourism which comprises almost half of the island nation’s GDP. And with islands such as Espiritu Santo
and Malekula “barely affected” by Cyclone Pam, she said Vanuatu was open for business. “Vanuatu relies on the tourism dollar so repairs to a lot of resorts and activities were swiftly undertaken,” she explained. With conflicting information swirling in the mainstream media, Morris said travellers were being confused by mixed messages. And with many major hotels such as Warwick Le Lagon already taking bookings after completing repairs last month, she stressed that the recovery was in full swing. Vanuatu Tourism is doing its bit to aid the recovery and is working closely with industry partners on the ground to encourage travellers to visit the region. The NTO also rolled out an elaborate social media campaign encouraging past guests to share photos of their Vanuatu holidays online. Hotels and tour operators are also posting inspirational photos on their own platforms to spur the tourism industry back into action. “The concept is to keep Vanuatu front of mind as a holiday destination and emphasise the fact that Australian travellers can play a small but very influential role in helping Vanuatu get back on track,” Morris said. While the impact on tourism remains unknown, Morris predicted that Vanuatu’s tourism industry would struggle in the first half of the year. But she remained confident it would “even out” over the course of 2015 with the trade’s support. “The trade is such an integral part of rebuilding Vanuatu and spreading the word that people should be still booking holidays there,” she explained. “We need their support now more than ever.” Vanuatu Tourism is encouraging the trade to visit its online resource www.vanuatuspecialists.com.au for updates on openings and booking information.
Switzerland shakes pricey reputation Switzerland is shaking its reputation as an expensive destination and attracting more Australians as new products emerge and air access opens up. Switzerland Tourism director for Australia and NZ Mark Wettstein told travelBulletin that the country had enjoyed consistent growth in visitor numbers in recent years, with Australian arrivals growing at around 10% year on year. “Switzerland has enjoyed a steady stream of Australian visitors over the last few years and we expect that to
18
travelBulletin MAY 2015
remain the same for this year and in the coming years as well,” he said, adding that the new Grand Tour of Switzerland was expected to drive a further spike in bookings out of Australia. More accommodation options and air access have also driven a 7.4% increase in Australian visitors to Zurich in 2014, he said. “Travellers are realising that the traditional perception of Switzerland as being impossibly expensive is no longer valid and prices are similar to that of neighbouring countries,” he concluded.
Basel
issues & trends
South America opens up to Aussies South America has been singled out as an emerging hot spot for Australian travellers, and experts are predicting that arrivals figures will break new records in 2016 with increased air access out of Auckland set to kick off later this year. Tourism is on the rise in Chile, with inbound figures increasing from around 2.8 million in 2010 to 3.6 million in 2015. Argentina’s tourism industry now welcomes around 5.6 million tourists a year, and Brazil saw over six million international visitors cross its borders last year following the FIFA World Cup. But Air New Zealand is confident that visitor numbers will experience another nudge in the right direction following the launch of its three times weekly direct service from Auckland to Buenos Aires on 1 December. “We have long expressed an interest in exploring South America as a notable opportunity [and] the new link is expected to boost inbound tourism to Argentina and the wider South American region,” Air NZ Australia general manager Leanne Geraghty told travelBulletin. Tourism Chile Asia Pacific markets manager Pablo Retamal echoed her call, claiming that
Prizes included Samsung Galaxy Tablets & HOYTS Movie Vouchers
Patagonia, Douglas Scortegagna CC: bit.ly/1Dbzdk2
tourism was a “growing industry” which has caught the interest of Aussies in recent years. “Australia was not a priority market until recently for Chile, and Australian inbound tourists to Chile have gone from about 30,000 to 50,000 in the last five years,” he told travelBulletin, adding that visitor numbers were likely to swell as more airlines service the market and competitive fares come online. However, he stopped short of quantifying how much, instead stressing that more work was needed to encourage Australians to “cross the pond” to Chile. He also insisted that destinations such as Peru and Argentina
were vastly different, and said awareness was lagging in the Australia market. “South America is seen as one destination by the trade industry in Australia and we need to separate all the different experiences and understand that Chile and Argentina are destinations in their own right,” he said. With air access also increasing out of China and the US, Retamal predicted that global tourism figures would grow: “It’s hard to say which markets are likely to see the greatest increases, but as a tourism board, rest assured we are fighting tooth and nail to make sure all markets grow.”
Did you take part in the industry’s BIGGEST Salary and Employment Survey?
Results in the June edition of
Travel Daily 20
travelBulletin MAY 2015
Premium Economy. Class. For all those who would like More — the new Premium Economy Class to Europe. More personal space New seat with up to 50% more space More baggage Two bags each up to 23kg free of charge More delight Meals served on china tableware More to look forward to A welcome drink to greet you on board
More entertainment 11 or 12-inch touch-screen with remote control, integrated airphones and USB port More relaxation Amenity kit with useful travel accessories More refreshment Separate water bottle at every seat More exclusivity Lounge access for a fee
More information at: premium-economy.lufthansa.com
On sale until 18 May 2015
$2399 plus taxes & charges
lufthansa.com
cover story
Wholesalers feel the squeeze The internet has prompted a shift in the way consumers search and book holidays, but agents are at the core of another profound shift – side stepping wholesalers and booking direct with overseas suppliers. Times are changing and as Steve Jones writes, wholesalers are feeling the pinch as agents forge stronger bonds with suppliers.
22
travelBulletin MAY 2015
cover story
O
n its website, the Council of Australian Tour Operators proclaims membership of the organisation to be a “hallmark of competence and integrity”. It talks of the commitment of its independent wholesale members, describing them as experts in their field who provide specialist knowledge “in all aspects of travel”. No one who is familiar with CATO, or those companies who swell its ranks, would question the veracity of those statements. But it’s a third declaration on the website that is maybe starting to look just a little out of place, and out of date. “CATO members… work in conjunction with licensed travel agents to make the customers’ journey, no matter how big or small, a better and safer experience,” it observes. It should be noted that it’s far from incorrect. Many wholesalers, most even, continue to enjoy solid relationships with travel agents, and for some, reliance on trade support is fundamental to the success, and very survival of their business. Yet according to a survey of CATO members there is growing unease about the direction this relationship is heading.
Wholesalers and agents are not filing for divorce just yet, but cracks are appearing – and it’s the retailers who appear to have the roving eye, casting their attention to better offers overseas, much to the chagrin of their wholesale industry partners. The results of the study, the first of any real depth conducted by CATO (and one offering anonymity to respondents), revealed that seven out of 10 members are concerned about travel agents cutting them out of the distribution chain and booking direct with overseas suppliers. Furthermore, the majority
list the issue as a “high priority”. CATO chairman Rod Eather revealed he was surprised at the level of concern and suggested that agents who do deal directly with overseas suppliers do so on a small scale. Furthermore, he questioned the ability of agents to understand the complexities involved. “I thought it was strange to be honest,” he admitted. “I wouldn’t have thought it would be the number one worry but obviously there are many members out there who have a real problem with it. “I imagine it is usually done on a small scale to a favourite destination that a travel agent has visited a number of times, and they have come to believe they are an expert on that destination. However, this unfortunately doesn’t make them experts on organising other peoples’ holidays to the destination. “They may not know the best and most reliable ground handlers, the full range of accommodation, or who to turn to in the event of a problem.” Nevertheless, whether on the small scale he suggests, or part of a more fundamental shift in industry dynamics, Eather recognised that if it’s a worry for members, then it’s an issue CATO needs to address. Come the end of June, however, it won’t be his problem to tackle on account that Eather is relinquishing the chairmanship role he has held since 2010. The decision to stand down was partly triggered by a desire to hand over the reins to “someone younger with different ideas” – and five years is a very respectable stint as chairman of any organisation – but also a result of the closure of Beachcomber Tours, a move forced upon Eather after losing 40% of sales to the Internet, as customers booked direct. It is, said Eather, the issue of customers taking control, more than agents cosying up to overseas suppliers, that is the bigger threat to the viability of wholesalers. “I looked at the numbers for a long time but couldn’t make it work,” he says. Dennis Bunnik, managing director of South Australia-based Bunnik Tours and a member of the seven-strong CATO committee, agreed with Eather that the rise of the DIY consumer was as big a challenge for the wholesale sector as agents going direct. But he likened the grim outlook for wholesalers to the similar crystal ball gazing of the early 2000s when the demise of the travel agent was presented as a foregone conclusion. Continues over page travelBulletin MAY 2015
23
cover story
Continued from previous page “Fifteen years later and the travel agency sector is still here and it’s as strong as ever,” Bunnik told travelBulletin. “Similarly the wholesale and tour operator sector of the market continues to thrive, despite the extra competition from the Internet and a small number of travel agents going direct. “The key really is providing value and remaining relevant. I think tour wholesalers will be around for a very long time.”
are many benefits ‘forThere agents booking through Australian-based wholesalers just as there are many benefits for clients booking through agents. The challenge for both is to communicate these and prove they are adding value to the transaction
’
The caveat, however, is the ability to move and adapt with the times – something the more traditional elements of the travel industry has hardly been renowned for. “I do think people and companies are more business-savvy these days and there is an expectation that your business partners and suppliers grow and evolve with you,” Bunnik continued. “If they don’t, that’s when you see companies looking for new partners and suppliers.” While Bunnik remained confident of a bright future – at least for those businesses able to demonstrate their worth – there is no doubt that all wholesalers find themselves under increasing pressure, which Eather, better than anyone, has recognised in light of recent developments with Beachcomber. He, like Bunnik, suggested that undiluted service levels and added value were essential in retaining relevance in a splintered, fragmented market that has long shed any semblance of order. “How can wholesalers remain relevant? Service, service, service,” Eather said. “Get a deposit early on before giving out all of the detailed info and creating full itineraries. “You must also make sure you have 24
travelBulletin MAY 2015
exceptional product knowledge and contacts on the ground. “They must offer something different and unique that is not easily duplicated. It can’t just be a room and a transfer anymore.” Wildlife Safari managing director Trevor Fernandes accepts that agents will attempt to stitch itineraries together themselves – just as consumers will attempt to go direct. But he adopted a philosophical approach, arguing the trend is an inescapable and inevitable consequence of a “food chain that is inside out and upside down”. “I see this happening all the time,” he said. “But we are living in a free market and I’ve always been a believer in a free market. It is the survival of the fittest and there is no substitute formula for service, quality and value, and that doesn’t mean the cheapest. It means providing the best value for money. “Wholesalers need to sell more on the merits of service.” Forging direct relationships with destination management companies is a “mantra” for some agents, Fernandes suggested, and it is up to wholesalers to convince them of their need to deal with Australia-based operators who have a proven history and, critically, proven quality. But he acknowledged that was sometimes hard to demonstrate to an agent, particularly those with the overriding aim of sourcing the cheapest price. “We will not try to beat a price. It’s up to us to demonstrate why we are a bit more expensive, to show we have the ingredients that make us better, that we have the fruit and nut on the cake. If I get asked can you lower the price and do it for this much money I say ‘yes, but you get half the cake’. “But convincing people you have superior quality can sometimes be difficult when all we have is printed material. Some agents you can convince but others you can’t and their clients do end up travelling with people who have sprung up on the web claiming to be bigger than Ben Hur only to have an average experience.” Bunnik says in many respects agents are faced with the same issue as wholesalers – persuading people of their worth. “There are many benefits for agents booking through Australian-based wholesalers just as there are many benefits for clients booking through agents. The challenge for both is to communicate these and prove they are adding value to the transaction,” he said. “Just as there are clients who don’t want to book each element of their holiday themselves and prefer the ease, value and conveniences of dealing with a professional
travel consultant, most travel agents want the convenience of dealing with a local tour operator who has the expertise and has done the ground work for them. “It means the agent isn’t reinventing the wheel for every booking and they don’t have the risk of currency or stumbling across a dodgy operator.” The risk of dealing with potentially unreliable, shonky overseas suppliers is an argument regularly advanced by wholesalers, but one that industry observers believe holds little weight if an agent has a degree of nous or professionalism about them. “Traditionalists try to put the fear of God into people by peddling the line that it’s a huge gamble dealing with overseas suppliers,” one commentator said. “If retailers simply do business with the first supplier they come across on the Internet without an ounce of due diligence then, yes, that would be foolish. But that would suggest they are remarkably naïve and irresponsible. “There are many high quality suppliers out there, with proven track records.” That is also the belief of Simon Hills, a name which still has the ability to make CATO members bristle. It was Hills, a past CATO chairman, and former Kirra Holidays chief executive John Morley, who founded Maestro Travel, a company which acts as a conduit between agents and overseas suppliers.
try to put ‘theTraditionalists fear of God into people by peddling the line that it’s a huge gamble dealing with overseas suppliers
’
It has attracted 120 active consultants so far with medium term plans to work with up to 200 agencies. Hills, who continues to operate his own wholesale business, Icon Holidays, alongside Maestro, predictably suggested it was only the beginning for the direct agent-supplier collaboration. And there is a major reason for such a trend – increased margin for the retailer. Maestro, naturally, takes a cut but Hills is adamant agents’ earning potential is dramatically superior to that what they earn through traditional wholesale commissions. “The travel agent margin for Maestro Travel members is consistently 18 to 30%. One agent I know regularly makes 35% against the 12% through a wholesaler,” he said. “There is a hell of a potential in this and it will keep
cover story
growing once more agents understand the financial rewards.” Hills said members typically go through Maestro when dealing with a supplier for the first time, but as relationships develop, the retailer forges direct communication. Critically, while agents and suppliers are free to correspond independently of Maestro, costing must be channeled through Maestro which then converts the price into Australian dollars. Such a system ensures Maestro itself is not cut out of the distribution chain and avoids the need for the agent to deal with foreign exchange. Hills conceded that dealing with suppliers does create more work for the agent. “Wholesalers used to do everything and now it’s the travel agent who has to talk to the overseas supplier and draw up the itinerary. But the rewards are there,” he said, adding that the 39 suppliers with which it has deals are stringently vetted both by Maestro and a London-based broker which runs the rule over each potential partner. He also countered the oft-cited argument that it is wholesalers who have built up knowledge over a number of years who are the destination experts. “It’s true that they possess knowledge but no one knows a country or city better than the people who live and work in it,” he said. “They
are on the ground and up-to-date with what’s happening. They know all the little things that make a difference; the great new restaurant that has opened, the building site that’s next to a particular hotel. That is information that may not be communicated through a wholesaler. “Real boutique wholesalers may have great knowledge but you can’t beat an agent talking directly with a supplier who is living in the destination.” He also rejected the notion that he has been disloyal to his former CATO colleagues, an accusation understandably thrown at him when Maestro launched in 2012. “I wasn’t being disloyal and I wouldn’t want to see the death of wholesalers. I wasn’t trying to burn the industry. I could see what was happening and I guess we got in first. It’s the reality. It’s happening and it will continue to grow. “Travel agents need to be loyal to their clients and themselves. The industry has changed remarkably and yes, there is less loyalty than there ever used to be. I look at this as a business evolution and often there is no reward or money in loyalty. “I can see why wholesalers feel they are under threat and it’s not surprising [agents going direct] is a concern. But I’d be more concerned about the major chains who are
being disloyal ‘andI wasn’t I wouldn’t want to see
the death of wholesalers. I wasn’t trying to burn the industry. I could see what was happening and I guess we got in first
’
building their own in-house operations. Vertical integration is the biggest threat to wholesalers.” Bunnik Tours MD, Dennis Bunnik, also dismissed the lack of loyalty argument. “Those companies left behind will always blame a lack of loyalty but in reality the truth is closer to home and often comes back to resistance to change or not putting enough time into building relationships,” he said. Agents were reluctant to speak publicly about the practice of booking direct for fear of putting existing wholesale deals at risk. But one Maestro member, talking to travelBulletin on condition of anonymity, said that between 30 to 40% of their bookings are now made directly with overseas suppliers Continues over page
cover story
Continues from previous page with no involvement from a traditional wholesaler. “You get to know people who are on the ground in a destination, you develop a rapport and learn so much more than you would dealing with a third party,” the agent said. Andrew Macfarlane, chief executive of Magellan Travel Group, admitted some members do go direct to suppliers but stressed it still represents a fraction of the network’s overall revenue. Members will usually bypass the wholesaler when a customer request is particularly unique, he explained. “We had a builder travelling to Barcelona and he wanted a guide who was also an architect. Sometimes it’s difficult to find an
We had a builder ‘travelling to Barcelona
and he wanted a guide who was also an architect. Sometimes it’s difficult to find an Australianbased wholesaler who can find something that specialised
’
Australian-based wholesaler who can find something that specialised,” he said. “One or two members are particularly keen [to work directly with destination management companies] and I do get involved now and again to give negotiations an extra push but with my buying hat on it’s not something I drive.” Macfarlane suggested wholesaler nervousness over retail-direct activity was more a reflection of their general unease as they battle vertical integration and the web. It was imperative they prove their worth to the supply chain in order to continue to prosper, he said. “It reflects the reality that they are under pressure,” he said. “They must find a way to add value. You can find the product elsewhere, they don’t have the sharpest pricing so what can they do? They need to be experts, have great service, and offer back-up support. “To remain relevant they need to add value because they are no longer the only place you can get the product.” 26
travelBulletin MAY 2015
Barcelona city scape, Rob Gillies, bit.ly/1IzOTTf
Australian Federation of Travel Agents chief executive Jayson Westbury agreed that wholesalers should be less worried about AFTA’s members cutting them out of the loop and more concerned about threats from further afield – notably “giant US-based online travel agents” who, he argued, pose a particular threat to wholesalers who rely on hotel-based packages. “Their biggest threat are online aggregators,” Westbury said, adding that those who simply “sell other people’s products” will be the ones to struggle, while those who “genuinely add value” will flourish. “You also have to remember that wholesalers have been selling direct to consumers for years,” he went on, in a thinly veiled reproach of wholesalers. “But I’m not actually sure it’s a huge issue anyway. Travel agents cannot be a specialist in every market in the world so most who are doing this are dealing in niche areas.” According to Stuart Udy, Australia and New Zealand senior manager for Expedia’s Travel Agent Affiliate Program (TAAP), the behaviour of the agent is directly linked to that of an increasingly demanding, knowledgeable and tech savvy consumer who has access to product – and pricing – online. The challenge therefore is to match, and surpass the expectation of a consumer who is seeking experiences that traditional wholesalers simply cannot provide. It is, said Udy, an increasing issue for agents as “Aussies become more adventurous and head off the beaten track”. The fact that 3000 travel agencies work with TAAP is symptomatic of a need and
desire for additional product, he said. “Travel distribution dynamics are continually changing and driven by market demand,” Udy explained. “Where do customers want to go? Who can get them there and who can supply the inventory at a competitive price? These are questions travel agents are asked day in, day out. “Expedia TAAP has broadened the scope of travel agents by providing a world of product that traditional wholesalers just don’t have. “For a travel agent to survive they need to offer terrific service for their customers and source the most appropriate products and close the sale.” But Udy reiterated what many have concluded – unless you add something to the equation, you’re on borrowed time. “If a wholesale business sees its market share drifting away, there’s no point stamping your feet and shouting ‘damn internet’,” he said. “That’s simply where the market has gone. It’s time to look at your product and offering and see what you can do to remain unique and valuable.” It would be quite wrong to suggest with any degree of certainty that the days of wholesalers are numbered, just as it was premature last decade to proclaim, as many did, that travel agents would be rendered redundant by the web. And there is no argument in CATO’s assessment that its members possess competence and integrity in spades. What is equally clear however is that disruption to the travel supply chain will continue. And competence and integrity may no longer be enough.
Do you work in travel and want to find a better work/life balance? Phone a friend to find out how to get your dream job.
PHONE A to find out how
Feel like you never have enough time for yourself and your family? Is your daily commute eating into your leisure time? Want to find a way to work that suits and supports your lifestyle? There is a way to continue working in travel and have a great work/life balance - and it’s just one phone call away… “I can’t say I’ve ever loved my job before, but I honestly love being a Travel Counsellor and I can’t imagine doing anything else,” says Tamsin Catto, a Melbourne-based mother of three who worked in travel for 15 years before joining Travel Counsellors. “My children love that I am available to take them to school and all their after school activities. Because I work my own hours, I have the flexibility to be there for my kids whenever they need me, but I’m also there for my clients whenever they need me. It’s a win-win situation,” adds Tamsin. Booking mostly leisure travel, Trish loves keeping fit and playing netball, and working at home gives her the freedom to pursue these things without rigid, set work hours getting in the way. “I have my dream job! I love working in travel and booking holidays for my clients,” Tamsin says. “Give me a call if you’d like to find out more about the flexibility and freedom that comes with working from home with Travel Counsellors.”
Tamsin Catto
TRAVEL COUNSELLOR
Have an informal, confidential chat on 03 9034 7079 Find out more at www.travelcounsellors.com.au or email the team at connect@travelcounsellors.com.au
03 9034 7079
technology
Qantas now up in the cloud
By Bruce Piper
A
lways at the forefront of innovation, Qantas has migrated some of its IT systems “into the cloud”. The days of maintaining large, expensive data centres full of quietly humming computers and big air conditioning systems could one day be over, with Qantas begining to utilising “cloud architecture” provided by Amazon Web Services – the same US company which made its name as an online retailer and which has now established a significant business in cloud computing. Under the Amazon model, users don’t maintain any of their own computer hardware but instead have full control of a range of internet-based services on a “pay as you go” basis. This has a number of major advantages. There’s no set-up cost, and if you need extra capacity – perhaps a faster, more powerful web server – you can simply “provision” more power on demand. Amazon has seen a strong uptake for the option and QF’s move of some web applications and analytics software into the cloud is certainly an endorsement of the model. Within the Qantas group, the move to cloud computing was pioneered by its accommodation-focused offshoot Hooroo.com. Hooroo was founded some years ago as a completely separate business with a mandate to develop an accommodation retailer from the ground up. Rather than sharing resources with
28
travelBulletin MAY 2015
its giant parent, the idea was that by making Hooroo stand alone it wouldn’t be hampered by established thinking or structures. The result was that Hooroo set itself up in the cloud using Amazon servers which allowed it to instantly scale up its computing power in response to demand. At the Traveltech conference some years ago, Hooroo’s then chief marketing officer
industry used to be ‘a The lot simpler when you had two different classes and two different prices
’
Bruce Fair confirmed that the business’s monthly Amazon bill amounted to some $10,000 at that time – a fraction of the cost of maintaining and staffing a traditional data centre. Hooroo continues to grow – not least because it supplies all of the hotel content for the Qantas and Jetstar websites – so it’s probably costing more by now, but still less than a non-cloud solution. Moving to Amazon is just one of a host of innovations being introduced by Qantas chief information officer Luc Hennekens, including a major project to enhance the airline’s yield with the introduction of the PROS revenue management system, forecast to be completed mid this year.
PROS is an American software company which utilises so-called “big data” – promising that by unlocking patterns within the millions of transactions undertaken by its customers they can “unleash your sales”. For airlines, the software analyses data to “identify bottleneck sectors” and maximise inventory by identifying low-performing markets and “monitoring potential seat spoilage”. PROS also offers to determine the “minimum acceptance price” – that is, work out exactly how much money it can extract from passengers based on a host of individualised factors such as other travel plans, previous booking patterns, and prices charged by rival airlines – not to mention the number of empty seats on each aircraft. The sheer scale of an operation like an airline means systems like this can help pricing decisions which were previously made on gut instinct. “The industry used to be a lot simpler when you had two different classes and two different prices, there are many more variables coming into play in today’s world,” Hennekens said. But it’s not just about pricing, with data analytics also set to be integrated more fully into QF’s operations centres to help provide management with better information on what to do in the event of a disruption. “Whenever there is anything that disrupts our planned schedule, it is an incredibly complex task to recover from and to make decisions around which flights are delayed or cancelled,” he said.
technology
guest comment With Expedia director of market management Asia Pacific, David Hamblin It’s widely known that customers shopping online for their travel requirements want choice and convenience, and they spend a lot of time searching for the perfect holiday. But booking habits go beyond choice, so here are a few insights into their hotel search and booking behaviours and how this impacts hotel revenue and occupancy rates. 1. Online customers like rewards – Expedia data shows that while millennials tend to be less loyal to brands than their parents, they do like loyalty programs and will share their personal data to receive perks and benefits.
search and book travel is skyrocketing. More than one in four transactions booked globally are now made using a mobile device and this trend is expected to grow, particularly as developing countries leapfrog over laptops and desktops and go straight to mobile.
More than one in four ‘transactions booked globally are now made using a mobile device
2. They also love mobile – A 2015 report from Phocuswright found that 70% of travellers used a mobile device to plan their travel in the past year – up from 47% in 2013. For Expedia, the trend where customers use their mobile devices to
’
3. Online customers value convenience – Online customers are more likely to book their hotel and airline components as a package rather than separately through different sites. Also, customers who book their flights and hotel accommodation in a
2015 Powering Possibilities Auckland I 3:00 – 6:00pm I Thursday 28 May, 2015 Langham Auckland I 83 Symonds Street, Auckland. Sydney I 3:00 – 6:00pm I Thursday 4 June, 2015 Swissotel I 68 Market Street, Sydney. Melbourne I 3:00 – 6:00pm I Thursday 11 June, 2015 Intercontinental Melbourne The Rialto I 495 Collins Street, Melbourne, 3000 Perth I 3:00 – 6:00pm I Thursday 18 June, 2015 Fraser Suites I 10 Adelaide Terrace, East Perth WA 6004 Brisbane I 3:00 – 6:00pm I Thursday 25 June, 2015 The Hilton I Queen Street Mall, 190 Elizabeth Street Brisbane QLD
package stay twice as long, book twice as far in advance, and cancel half as often as those who only book a hotel room. It’s important for hoteliers to understand their customer base and know the type of guest they want to have more of in their hotel. That, together with a diverse distribution strategy that covers all the bases, will put them in the best position to increase occupancy rates and get more revenue from their guests. Data referenced in this article is Expedia first-party information.
DISCOVER THE NEXT GENERATION IN TRAVEL TECHNOLOGY AT THE SABRE TECH SUMMIT This is a rare opportunity to see all the latest and upcoming technology solutions for your business, discuss trends with tech experts and get insights on where it’s all heading… All while mingling with your peers over drinks and canapés. See the full agenda here: http://sabrepacificevents.com/techsummit Don’t miss this unique opportunity. Places are limited so reserve your place now.
technology
Airline systems demand attention Airline systems have come a long way over the past four decades, but Travelport vice president distribution sales & services Damian Hickey says current distribution systems fall short, and airlines need to adopt a new approach to meet the expectations of travel agents. While airlines have honed their distribution and sales processes over the years, Hickey says current systems fail to incorporate ancillaries in a seamless booking process, placing greater pressure on agents who have to break from their normal booking systems to book add-on products. “This reduces agent efficiency and slows down the booking experience for travellers. Even more importantly, agents can’t easily access information about ancillary products from within these systems, making it difficult to cross and upsell them effectively,” he told travelBulletin. With research showing that global ancillary revenues are now worth more than US$31.5 billion, he said airlines were becoming increasingly dependent on ancillary products. But with almost 90% of ancillary sales currently generated directly on airline websites, he said carriers were yet to capitalise on the commercial opportunities. “What’s needed is a new approach to merchandising and distribution that makes
Recent trends such as ‘product unbundling and
growing LCC competition mean that established ways of working are no longer adequate
’
Damian Hickey, Travelport Vice President Distribution Sales & Services
the full range of travel content – including LCC fares and ancillaries – available to agents from within their existing booking process,” he said. Airlines are “re-evaluating” their approach, with some carriers now embracing dynamic selling processes allowing them to adjust the price of individual fares in real time based on fluctuating demand. Others are adopting customer-centric selling which integrates personal customer data into the search and sales process to deliver personalised offers based on travellers’ individual preferences, Hickey added.
“While this is an industry that is historically slow to accept change, recent trends such as product unbundling and growing LCC competition mean that established ways of working are no longer adequate,” Hickey said, adding that the Travelport Merchandising Platform had been “well received” from some airlines looking to streamline booking processes. “Change is always a challenge and successful migration to a flexible, next generation merchandising and distribution platform requires investments in technology and effective risk mitigation at every stage of the process,” he concluded.
Sabre Pacific Tech Summit Sabre Pacific is welcoming travel professionals to join a series of technology summits in May and June, with workshops on emerging technologies set to top the agenda. Featuring an extensive line-up of discussions and presentations, the summit will also include an exhibition on the
MAKE EVERY DAY PAY DAY.
latest innovations, with ample networking opportunities for all attendees. Themes include how to reduce costs with touchless transactions, how to use data to break new ground, and how to enhance the power of the GDS with new apps. Experts will also offer practical advice on how to use
technology to enhance business processes. Five events are lined up until the end of June, commencing in Auckland on 28 May and concluding in Perth on 18 June. Registration is required. Visit www.sabrepacificevents.com for more details.
eNett Virtual Account Numbers (VANs) are an easier way to pay suppliers. VANs reduce costs and also give you real rewards. Receive 0.5% rebate* on the booking value each time you transact. You’ll also get access to lower cost international payments.
Find out more at van.enett.com/payday *Terms and conditions apply. In Australia, eNett International (Singapore) Pte Ltd AFSL 441376 is not licensed to give advice and you should consider the PDS before acting.
Expedia TAAP, that’s why your customers keep coming back. Earn great commission and get your clients out there.
JOIN TODAY AT www.expedia.com.au/taap Telephone
1800 726 618 Email
expedia-au@discovertheworld.com.au
careers
What’s it worth? Formal training in the spotlight Not sure whether an Advanced Diploma or a degree is worth your time and money? You’re not alone – but as Louise Wallace writes, formal qualifications hold the key to some of the top jobs.
T
ravel agents are a happy bunch, with Forbes singling them out as some of the most satisfied employees on the scale. According to Forbes, travel perks and a relaxed workplace environment are the key ingredients to happy consultants, with the ability to create great holidays and satisfied customers also rating highly on the list. With no barriers for entry, the tourism industry is an open door for anyone keen to give it a go, but research compiled by recruitment specialist Progressive Personnel shows that career progression is central to overall career satisfaction. With over 70% of tourism employees expressing disappointment with their salary package, Progressive Personnel claims that 84% of people in the travel industry plan on changing jobs in the next 12 months. But interestingly, over 80% plan on staying within the tourism sector. That’s where formal training comes into the picture so that employees can upskill and step into roles with greater earning potential. While agency groups such as Your Travel Centre welcome novices with no industry experience to join their ranks, a Certificate III in Travel is the golden standard for most networks who are looking to recruit skilled agents with an ongoing commitment to the industry. But as William Angliss Institute program leader of Tourism and Travel Stuart Christelow explains, formal training is coming to the foreground as major brands implement more rigorous benchmarks. “Prospective employees may not need a full qualification, but very often they are expected to have been trained in a reservation system and in airfares as a minimum,” he tells travelBulletin. And as major agency groups continue to dominate the travel industry landscape, he 32
travelBulletin MAY 2015
says there’s a greater demand for qualified staff who are looking to move up the corporate ladder. “We are facing a significant change to when there was a larger number of small, private businesses which required little or no qualifications,” he claims. While the 19-week Certificate III in Travel serves as the gateway to the travel industry, Christelow says further training is essential to progress beyond consultant level. And while any additional training will help to sweeten consultant CVs in the eyes of potential employers, he says a Diploma or Advanced Diploma is the most logical progression after a Certificate III. “A Diploma and Advanced Diploma of Travel and Tourism will help to develop supervisory and management skills in a broad range of areas. Those looking to upskill may even consider a degree option after this for a higher
level of management progression,” he says. FC Business School national business leader Kelly Spencer agrees that further study opens doors and provides candidates with skills and confidence to take their careers to the next level. While learning is an “ongoing component of everyone’s career”, she recommends a Certificate IV in Travel and Tourism or equivalent for retail travel consultants looking to progress beyond the standard. And for those looking to step into a Business Development Manager (BDM) role, she recommends training to a Diploma level and beyond to build management qualifications that add to their business acumen. “BDMs need to have a sound understanding of the industry and would benefit from an accredited qualification in business or management,” she says, adding that nationally recognised qualifications are the gold standard to ensure training is
www.travelbulletin.com.au EDITOR Ian McMahon (03) 9568 4464 or mobile 0414 320 321 imcmahon@travelbulletin.com.au FEATURES EDITOR Kate Atherton – 0412 254 762 katherton@travelbulletin.com.au
careers
travelBulletin is published by Business Publishing Group Pty Ltd ABN 47 112 661 613
DIRECTORS AND ASSOCIATE PUBLISHERS: Eddie Raggett (Sydney) and Ian McMahon (Melbourne)
We are facing a ‘significant change
SALES rigorous andNATIONAL comprehensive. SYDNEY OFFICE MANAGER (02) 9969 6683 Additional Eddie training Raggettdoes (02) 9969 6683 PO Box 492 Mosman or mobile 0408 289 599 come at a cost – both in NSW 2088 eraggett@travelbulletin.com.au MELBOURNE OFFICE terms of timeHAWAII and money (03) 9568 4464 Eddieand Raggett (02) 9969 6683 – but part-time online Box 818, Carnegie or mobile 0408 289 599 Victoria 3163 study optionseraggett@travelbulletin.com.au are available. PRODUCTION Accredited institutions like CO-ORDINATOR Marlene Poon – 0407 676 177 the William Angliss Institute mpoon@travelbulletin.com.au and Group Colleges Australia ART DIRECTOR also provide Wendy flexible courses St George CAB Audited – circulation 5918* wstgeorge@travelbulletin.com.au *Average net circulation Apr 2012-Mar 2013 allowing students to strike the right balance. Formal training is available at all levels, with William Angliss offering a traineeship program for new employees without formal qualifications. The program is supported by the government to ease financial pressures for employers and employees, and most learning occurs in the workplace during work hours. Full time employees can also gain recognition for skills learned on the job, and qualifications can be awarded if employees meet certain unit criteria. But while formal training is becoming increasingly important to retail it remains unchanged for the **Andagency travel groups, agents pay only $30 for a full year’s booming home-based sector which has a stronger focus subscription to travelBulletin on practical skills and product knowledge. Some mobile Join the rush to subscribe to travelBulletin, the monthly that groups such as Travel Counsellors requirepublication all consultants makes sense of the electronic news bombardment. to have a Certificate III in Travel, but it’s up to individual Why pay $149 a year for a travel industry newspaper when travelBulletin consultants to drive their own business. provides comprehensive industry coverage for only $50 a year Travel Counsellors(even encourages less if you’reconsultants a travel agent). to complete additional training via accredited organisations such as the William Angliss Institute and GCA, but general manager Tracy Parkinson says To: travelBulletin subscriptions ABN 47 112 661 613 regular in-house training is ample to Victoria keep consultants’ skills up to par. PO Box 7043, Banyule 3084 “We offer a range of training opportunities that fit in with our I am a travel agent and enclose cheque or money order for agents’ busy $30 lives iscover delivered in asubscription number of ways including (inc.which GST) to 12 months to travelBulletin face to face classroom style, webinars where agents can log on from I am not a travel agent and enclose cheque or money order for their home, and recorded videossubscription that can to betravelBulletin viewed at a $50 (inc. GST) totraining cover 12 months suitable time,” she says. Name ................................................................................................................... Parkinson says GDS training, fares courses, and product updates title ................................................................................................................ on cruise andJobniche product helps agents to improve their knowledge name .................................................................................................... base, but sheAgency concludes that any additional skills are beneficial in progressing the career path of travel consultants. Company / organisation ...............................................................................
to when there was a larger number of small, private businesses which required little or no qualifications
SUBSCRIBE TO
’
travelBulletin ONLY $50 A YEAR*
Address ............................................................................................................... ................................................................................................................................. Getting Started
Email .................................................................................................................... FC Business School offers a comprehensive list of Certificate and Diploma programs covering business, sales, and management. PRIVACY POLICY: Like you, we abhor spam. We do not pass on email addresses (or any other detailsavailable of subscribers)on to third parties. Weand may from Facilitated sessions are also branding marketing, time to time contact you with information we believe may be of interest to you personal development and customer service, allowing participants such as breaking news items, registration renewal notices and promotional offers. To opt out of receiving these, tick this box to attend training days to complement their existing skills. n www.FCBusinessSchool.com *Overseas subscriptions: $70 a year (Asia Pacific), $90 a year (rest of world) **Offer not valid outside Australia
William Angliss Institute provides a variety of tourism courses ranging from certificate to degree level. Offering a Certificate III in Tourism through to a Bachelor of Tourism and Hospitality Management, scholarship programs are also available. n www.angliss.edu.au
WANT YOUR CAREER SEARCH HANDLED BY AN EXPERT? CALL AA ARE YOU TECH SAVVY?
DOES ONLINE EXCITE YOU?
PRODUCT MANAGER SYDNEY EXCELLENT SALARY PACKAGE
ONLINE PRODUCT MANAGER PERTH EXCELLENT SALARY PACKAGE
This key role will see you influencing a team to deliver the overall commercial performance of this technical product to meet market requirements. You will be liaising with key stakeholders and third party developers to ensure the market requirements are met. STEP INTO INTERVIEWING NOW!have Essentially, you will have a strong CORPORATE technical background; excellent commercial acumen, plus account management and SALES GENERAL MANAGER leadership skills.
Are you well connected and have strong commercial relationships? Have you worked across various mediums in B2B, have strong product knowledge and are target driven? If so, you may be the perfect match for this new role. Essentially you will REPRESENTING A background. WELL FINAL DAYS – APPLY NOWYou will come from selling and relationship driven have proven negotiation skills and excellent verbal and written KNOWN PRODUCT MARKETING MANAGER communication skills.
CALL AA
BUSINESS MGR BRISBANEDEVELOPMENT CBD – UP TO $110K + BONUSES PERTH –PKG GUARANTEED SAL $70K MIX IT IN travel THEcompany MICE MARKET This leading looking for hit an AreUP you experienced in salesisand can you BUSINESS DEVELOPMENT MANAGER experienced general manager to mark lead this close the ground running? Make your securing BRISBANE – SALARY PKG $100K OTE + a knit business! team and These join them in this newly created new fantastic new roles are role General Manager. Previous experience Experienced inofthe MICE market Queensland? Know how to great opportunity toinget ahead with a market drive andleader. get newYour business over the in line? Then come and&join this managing aexperience successful travel business being sales has given you the leading event management company in abuilding newly created role. This able drive performance is a must. Proven skills intodeveloping leads, relationships BDM roleability will reward you like no other in the market currently – to build up good working relationships, strong and signing valuable new business. you amazing incentives, inspirational leadership and long termIfcareer negotiation & commercial acumen is essential are hungry for success and career progression development. Proven MICE sales experience a must. along with having a canyoudoallattitude. this company will offer that andEnjoy moreanso executive salary package apply now! + bonuses.
BUSINESS ACCOUNT EXECUTIVE MELBOURNE – SALARY PKG $90K +– BENEFITS MELBOURNE UP TO $75K PKGE HIT THE ROAD JACK This reputable and growing wholesale travel Responsible for managing a portfolio of INDUSTRY SALES MANAGER operator are some positive clients with the implementing objective of growing revenues, MELBthat – SALARY PACKAGE to $80K+ changes will see company increasing margins andthis retaining the undergo business. further growth! Through proven experience Do youwill have ability to makeyour an impression with the VIC travel You bethe able to effectively communicate client agency market across and remembered? This travel product developing andbeimplementing strong objectives the business, in fantastic thestrategic reverse, is looking for a new sales manager to take over the VIC marketing plans, you for willcommunicating build awarenesstravel of territory you will be responsible and manage the relationships across the state. You will be self all brands this company represent. Experience industry trends to the clients and keeping them motivated working from your home based office and be willing to working a tosimilar roleorinisinnovations. essential, ofinnew product Are you attitude getabreast out and about build sales your region. Atogether go-getter with creative Do not tech asavvy withflaair.real theopportunity industry? willpassion win miss here!forthe to become aThis partrole of this growing is for you! company.
GOOGLE THIS
DON’T YOU DESERVE MORE?
ONLINE INDUSTRY SALES/PRODUCT MGR ANALYST TECHNOLOGY THINGS SYDNEY – LOVE SALARY–ALL PACKAGE OTE $120K
CORPORATE BDM X 4 JOIN THIS SALARY FORWARD RAILS MEL,GO SYD OFF & BNE–THE PACKAGE OTE THINKING PCO ACCOUNT$120K+ MANAGER
FOCUS If you are passionate aboutDIGITAL? product and have established key relationships, this dynamic travelAND online provider needs you! BUSINESS SYSTEMS DIGITAL MARKETING MANAGER Due to expansion they are looking to grow their sales team. ANALYST CENTRAL LOCATION – UP Your primary objective will SYD be to develop and secure dynamic travel products fromTO new and existing clientele for TO their direct SYDNEY – SALARY PKGE $85K $90K PACKAGE consumers. You will be rewarded with a top salary and enjoy AreDue you with online bookingleader systems toexperienced recent expansion this industry working in a fun, funky environment.
If you have –theUP passion sales andPACKAGE love building BUSINESS DEVELOPMENT MGRnew SYDNEY TOfor$95K relationships your talents will be rewarded here. You’ll be joining PRO RATA P/T NORTH SYDNEY LOCATION – the real a leading corporate TMC offering a long term career and OTEWith $120K This growing technology company is looking opportunity of progression. a leading brand behindfor you, you’ll be an ableexperienced to take aim atAccount an amazing package tofor manage This well-known PCOManager issalary looking anand work with fantastic unique clients. and develop their rail business. You will possess
opportunity to join an industry leader. You’ll be well versed in the creation and delivery of unique, motivational and exciting events for corporate clients, including incentive groups, conferences and launches. TopCLIMB salary package and global career progression WORK FORTHE THIS DYNAMIC CAREER on offer. ORGANISATION
product managers and retail businesses to identify new business opportunities along with maximising current supplier relationships Working on a large marketing strategy your knowledge of the industryHERE’S and strongPRODUCT business development skills will be the YOUR BIG UNIQUE ROLE to success. CHANCEkeyTO STEP UP
andlooking have a for strong background in technology? are a forward thinking professional Inwith thisextensive role, you industry will be responsible building experience for along with anddigital executing new system processes strong marketing experience to jointotheir LOVE ORGANISING BIG TICKET improve business performance, identify areas team. The role has a broad spectrum but willof EVENTS? improvement relating to business and technology focus on implementing winning strategies that SENIOR EVENTS DIRECTOR/ TEAM LEAD processes, withwith overall analysisThis of will engage together consumers the brand. SYDNEY – SALARY PACKAGE OTE $90K+ practices and procedures. Bring isbusiness your chance to showcase your digital B2C If your experience liesexperience within conference &this incentive program your analytical approach winning travel marketing andtomove to a company managementcompany and you have teams, this is a rare withmanaged ongoingevent career progression. that continues to grow!
experienced BDM. The role is focused on lead strong account management skills along generation and pure business development with the ability to support the team identify components. This is your chance to to showcase KNOW SCHMOOZE opportunities. IfHOW you haveTO anegation good understanding your strong presentation, and selling YOUR of skills the rail industry, I.T. skills andMonday a passion working forstrong anSUPPLIERS? industry leader. PRODUCT SPECIALIST for –the travel industry then this role for you! Friday role with some travel andisclient BRISBANE – SALARY PACKAGE $85K Contact the team today more information on entertaining after hoursfor requirements. YouTO will this experience, uniquePride role.yourself Are you a smartsales negotiator? on yourfrom supplier have industry preferable relationship thisproduction. challenging Apply role youtoday! will liaise with events inskills? hotelsIn or
LADDER TECHNICAL PRODUCT MANAGER CLIENT RELATIONSHIP MICE SALES MANAGER RESERVATIONS SUPERVISOR MANAGER AUSTRALIA’S MOST EXPERIENCED CENTRAL SYD LOCATION – NORTH SYDNEY – UP TO $95K MELBOURNE – SALARY UP TOPACKAGE $80K PACKAGE SYDNEY – UPTO $85K PACKAGE PACKAGE TO $57K + BONUSES EXECUTIVE RECRUITMENT TEAM ThisThis is your chance join a successful growing Due expansion awardbywinning leading tour to operator is looking for an Aretoyou confidentthis leading exampleTMC andis technology company. You will have passion looking for antoexperienced an exciting time experienced Sales Manager who canacombine being able provide backCRM, up support for your for account management expertise, to join aThis dynamic You will be managing their high level sales skillsand withproduct their strong MICE team? superbteam. company is looking for an Email: executive@aaappointments.com.au with good GDS and to business analysis a portfolio of travel high profile accounts be network. Thisknowledge is your chance step into this experienced manager / teamand leader skills. You will interact with areas ofYour the FOR MORE EXECUTIVE VISIT OUR WEBSITE responsible for identifying growth opportunities management role, with onevarious direct report. who MANY is looking to join a travel company that VACANCIES business and will workinclude closelystrong with customers to and travel trendspositive in the industry. Essentially key strengths proven sales www.aaappointments.com is undergoing changes! If you haveyou a drive andinrecommend solution offerings. will a TMC at or travel similar,team with skills the B2B space, the ability to winCan andyou min.have 2yrsexperience experiencefrom managing infl uence? you and a product expert looking for outstanding knowledge multiple nurture topAre clients maximize brand profile (wholesale or retail travel) of andmanaging would like to make something accounts requirements. Claim your across Australia. Excitingdifferent? opportunity not to be the moveand to areporting global wholesaler, enquire today. travelBulletin June 2013 This role is for today! you! spot staff and apply missed – apply Amazing benefitoday! ts on offer.
Ph: 02 9231 2825
AUSTRALIA’S MOST EXPERIENCED EXECUTIVE RECRUITMENT TEAM
Group Colleges Australia also offers a variety of IATA self-learning and online course modules to provide students with global recognition as travel professionals. Courses include a Certificate III in Travel, a Diploma of Travel and Tourism, and an Advanced Diploma of Travel and Tourism. n www.gca.edu.au
travelBulletin MAY 2015
WANT YOUR EXECUTIVE CAREER SEARCH HANDLED CONFIDENTIALLY?
Ph: 02 9231 2825 Email: executive@aaappointments.com.au
33
FOR MANY MORE EXECUTIVE VACANCIES VISIT OUR WEBSITE www.aaappointments.com www.aaappointments.com.au travelBulletin APRIL 2015
xx
careers
Career in focus SARAH ANDERSON GTI Tourism managing director
C
onservation may be catching the eye of more travellers, but for Sarah Anderson it’s more of a lifestyle. It may seem like an unlikely marriage for the managing director of a burgeoning travel PR firm, but as a budding environmentalist from the ripe age of 14, Anderson has driven the message of sustainable tourism through her entire business. Conservation has always been close to Anderson’s heart. Joining the Youth Earth Symposium in her school years, she ran workshops for high school students covering ecology and sustainability, and became a spokesperson for the symposium to encourage others to adopt sustainable practices. With the seed planted from a young age, conservation now forms the basis of Anderson’s work and has been a driving force in the projects and clients she works with. “I’ve always been looking for ways to combine my passion for marketing with conservation, and one of my main motivations for working in tourism is to help local communities to build a sustainable future through tourism,” she tells travelBulletin. The mother of an energetic three year old, Anderson’s passion for conservation translates to her persona; she’s softly spoken, enjoys the simple pleasures in life and is a no fuss kind of person. But behind the gentle façade she’s clearly driven and knows how to pull together campaigns that get people talking. Reminiscing about the beginning of her career some 17 years ago, she recalls getting her foot in the door at a property PR agency on the Gold Coast with the Surfers Paradise Marriott as one of her first clients. But her real foray into the industry was after securing a PR manager role for The Travel Corporation in 2000 working across a number of iconic brands. It’s a role that she remembers as her “dream job”, but destined for bigger things she went on to spend five years in London working for a destination marketing agency which opened her eyes to the world of marketing. “I got a firm grounding in the industry and recognised that the consumer is the decision maker even in the trade space. It’s probably one of the most valuable lessons I’ve 34
travelBulletin MAY 2015
a business owner ‘youAshave no choice but to
delegate... if you’ve got the right people they will make the right decisions
’
learned over the years,” she says. GTI Tourism was born a couple of months after Anderson returned to Australia, with Club Med signed as the first client – the result of “a bit of luck and a lot of hard work”. But one of the proudest moments for Anderson was spearheading the creation of conservation foundation, TreadRight, in conjunction with The Travel Corporation (TTC). The foundation, funded by corporate donations, has now given back over $2 million to local communities and wildlife projects such as WildAid and the Sea Turtle Conservancy. “It has certainly been one of my proudest achievements and it is great to see such a significant player [TTC] really contribute to sustainable tourism,” Anderson says. After the foundation was up and running, Anderson turned her focus back to expanding GTI before the global financial crisis hit and virtually all of the firm’s clients slashed their budgets or cancelled their contracts within three weeks. Determined to hold onto her staff, she boarded a plane to World Travel Market in London a few days later, on the prowl for new clients. It turned out to be a landmark decision, landing the Vanuatu
Tourism account which was closely followed by PNG Tourism and some project work for Canada Tourism. “The GFC was our biggest motivator for growth and forced us to move fast to grow the company,” she says. Reflecting on the eight year history of GTI, Anderson says her willingness to take risks has been instrumental to her success, teamed with pitching viral campaigns in the early days of social media when larger agencies wouldn’t touch it. But she also says juggling motherhood with a fledgling business has been the single greatest challenge of her work life, with her daughter coming onto the scene when GTI was just 5 years in the making. Anderson took a step back and handed the baton to her team, adopting the view that her staff would rise to the challenge. “As a business owner you have no choice but to delegate. It was hard in terms of letting decisions go at the start, but I’ve always believed in giving people the right opportunity and trusting that if you’ve got the right people they will make the right decisions,” she says. “It’s crucial to success.” Anderson admits that GTI is still a work in progress, with each day bringing new highlights and ideas for winning campaigns. Discussing the travel industry in general, Anderson says there are still barriers for females in travel led by lagging flexibility for families. But rather than be distracted by imbalances in the industry, she says ambitious travel agents, BDMs and agency owners should focus on building strong relationships to get ahead. “If you are willing to work really hard and build on relationships, you’re on the right track. Hard work will get you to where you want to go, but relationship building will open the right doors for a fantastic career,” she says.
Get to know 1. Years of industry exp – 17 years. 2. Favourite holiday destination – Somewhere I haven’t been. 3. Worst holiday – Having chickenpox on my honeymoon on the Spirit of Freedom dive – I was too sick to dive. 4. Career highlight – It’s a tough choice between celebrating eight years of GTI Tourism and establishing The TreadRight Foundation. 5. Favourite way to relax – Good friends, food and champagne overlooking the beach.
Are you frustrated with low commissions and limited earning potential? If you love working in travel, there’s a way to earn more and it’s just one phone call away…
PHONE A to find out how
“Joining Travel Counsellors has drastically improved my financial situation,” says Suzanne Watson, a Travel Counsellor for the last four years.
03 9034 7079
“Most Australian agents aren’t aware of the incredible earning potential of running your own business with Travel Counsellors.” says Suzanne. But Suzanne’s situation isn’t unique. In Australia, more than half of Travel Counsellors agents take home more than $70,000 on average a year, with our top 3 earners receiving an astounding average of $230,000 per annum. “I’ve been in the industry for 23 years and wish I had the option of joining Travel Counsellors sooner.” she says. Queensland based Suzanne is one of the company’s top franchise owners bringing in over $150,000 of commission a year. Not only does Suzanne get to enjoy the benefits of earning an enviable income, she also gets to experience reward trips to exotic destinations and resorts all over the world, a sweetener many top Travel Counsellors agents get to taste each year. “It’s a lovely feeling to get recognition – something that was missing from my previous jobs in travel” says Suzanne. “But the business doesn’t just walk in through the door. You get out what you put in, and I’m driven to put in the hours. Luckily, I’ve got brilliant head office support, the flexibility of being at home, and a client base that grows by relationship building and recommendation – the best way to build any business.” “My experience and knowledge gives customers an invaluable level of service that they’d never find online. If you’d like to chat about the financial rewards and recognition you get at Travel Counsellors... why not give me a call?”
Suzanne Watson
TRAVEL COUNSELLOR
Have an informal, confidential chat on 03 9034 7079
Find out more at www.travelcounsellors.com.au or email the team at connect@travelcounsellors.com.au
tRAVEL MANAGEMENT
By Oliver Tams
E
fforts to engage and retain travellers for corporations and TMCs come from all sides including direct marketing, travel apps, commoditisation of services, and the emergence of new economic models. Yet the biggest challenge to come will be a demographic shift in the client base. By 2020, more than half of the travelling workforce will be made up of millennials – those kids with attitude and a penchant for change, all grown up. Millennials will travel light, happily pay their own way, provide feedback via a multitude of channels, book today for tomorrow, and carry a minimum amount of gadgets. Simply, travel will be about mobility. Forbes took a closer look at the use of technology, finding that smartphones and tablets will make up 87% of all connected devices within the next three years. So woe betide any corporation or TMC who doesn’t understand this new demographic along with their need for higher service levels, peer to peer affinity, and the need to Instagram everything and be connected 24/7. To keep up with the shift, decisions need to be made now. Particularly because – as American Express points out – millennials will reach their peak spending power within the next two years, creating a bubble that no one wants to burst. With this new found authority, rules around legacy compliance and policy 36
travelBulletin MAY 2015
adherence no longer apply as millennials push the boundaries around the sharing economy, look for online gratification, and demand a work lifestyle balance that baby boomers only talk about. The challenges will be exacerbated by a greater desire for travel. According to Expedia, millennial professionals aged 18 to 35 take an average of five business trips per year versus two for the over 35 age bracket. They are also 62% more likely to extend their trips. And with more trips comes more expense, more change, more feedback, more apps outside the policy constraints, and most importantly, more pressure on TMCs to get it right. This will be a tectonic shift for TMCs who are used to policies built to control the 5% of rogue travellers, thus effectively fencing the rest. Those figures will invert with 95% of travellers pushing the envelope and wanting the freedom to choose how the budget is spent and on whom it is spent. Airbnb, Uber, Lyft, Taskrabbit, and networking sites like Doximity and Dribble will all influence travel choices for millennials. Market reports also indicate that more than 50% of millennials will use peer to peer services such as Airbnb for corporate travel. So along with a shift to peer recommendations, vital parts of what TMCs rate as binding elements, control and direct relationships, begin to unravel. Changes to keep millennials engaged and motivated to work within a system will need to include gamification to help drive desired
behaviour, a deep dive into social media, adjustments for the technology of choice, constant feedback, peer recognition and giving the traveller the ability to document it all. Corporations and TMCs also need to integrate applications and technology that appeals to millennials including apps, Bring Your Own Device (BYOD) security, and mobile wallet, putting pressure on them to be technically astute and keep up with trends. Sounds like a total overhaul of the travel management eco-system, and if you look closely, it resembles the shift in thinking that occurred when everyone suddenly had access to their own travel bookings. TMCs who embrace this shift in their customer demographic with a flexibility to move within technology platforms, understand the sharing economies and collaborate with their clients on a daily basis, will be surprised by the depth of millennial loyalty. It’s time for change.
Oliver Tams has over 30 years of travel industry experience in various sales, management and corporate roles. He is also an avid blogger and industry spokesperson and is currently the director of strategic partnerships at Think Procurement.
cruise report
Cruise emission agitation By Bruce Piper
P
olitics appears to have triumphed over common sense at Sydney’s White Bay cruise terminal, where a last minute lobbying effort by local residents against cruise ship pollution led to a commitment by state premier Mike Baird to ban high-sulphur fuels. The terminal is adjacent to the environmentallyaware state seat of Balmain, where Baird had been hoping – ultimately unsuccessfully – to snatch power from incumbent Greens MP Jamie Parker. Baird reacted swiftly after the powerful radio shock jock Alan Jones joined a chorus of complaints about ships docked at White Bay using low quality “bunker” fuel to power their generators, with a campaign website claiming that “literally tonnes of foul-smelling, toxic emissions are being dumped on the community from the heavy polluting cruise ships”. The issue also received widespread coverage on evening TV news bulletins, with calls for an on-shore power source which would mean the ships could turn off their engines while docked. Ultimately politics won, with the now re-elected state government making a commitment to a 0.1% maximum sulphur content for cruise ships in Sydney Harbour, down from the current 3.5% and just one tenth of the 1% allowable for ships operating within 200 nautical miles of the US and Canada. However the lobbying campaign’s anticruise ship claims, and the knee-jerk proposal to reduce the maximum allowable sulphur content of the fuel, need to be examined in the cold hard light of day. Firstly, although much is made of the huge growth of the global cruise industry, passenger cruise ships only comprise a tiny proportion of the worldwide shipping fleet. Sydney Harbour, as a major trading port, is frequented by dozens of cargo vessels which also presumably release high levels of emissions. Although the 0.1% requirement is being imposed on the cruise shipping sector, the government has only said it will “look at” emissions from other types of shipping, which will be “considered for further regulation”. During the lobbying campaign, a number
of spokespeople for fuel suppliers were quoted about the easy availability in Sydney of the low sulphur-content fuel. However another key issue is that in most cases ships steaming into Sydney would need to be supplied with the special fuel at the port prior to their arrival. That would mean that they might need to fill up with the lowsulphur oil somewhere far out in the Pacific,
you can ‘justIt’srunnotanlikeextension
lead out to the ship from a big power point
’
or at a remote Australian regional port where it’s much less likely to be available. Not impossible, but not as easy as some pundits would suggest. Another suggestion was that the government provide the ability for ships to utilise on-shore power while docked at White Bay. While this would seem to be a logical solution, it’s not a particularly simple one to implement. By their very nature, cruise ships have independent power systems which often run on different voltages and frequencies to local Australian power supplies. “It’s not like you can just run an extension lead out to the ship from a big power point,” said one expert. Quite apart from the technical difficulties, the power requirement for a cruise ship would require a massive infrastructure investment in
additional poles and wires by the government along with more electricity, something which would also offend the green sensibilities of the inner-city voters in Balmain. The government dodged this issue by confirming that a “detailed cost-benefit analysis” of installing ship-to-shore power at each of the major NSW shipping ports is currently under way and will be completed in 2015. Nobody will be surprised when the outcome of this probe reveals that it will be way too expensive to implement. Sydney Harbour certainly isn’t the first port where these issues have been raised, and the global shipping industry has for some time been working on a plan to mitigate the problem of emissions while sitting at the dock. Despite the accusations made against the cruise industry, passenger shipping is in fact at the forefront of reducing emissions on a global basis. Cruise Lines International Association (CLIA) has a concerted program which encourages member lines to cut their impact on the environment, and major operators including Carnival Corporation and Royal Caribbean have already committed to massive refurbishment programs for their fleets which include the installation of exhaust gas “scrubbers” to reduce air pollution. Some in the industry see the unilateral move to clamp down on cruise ships at White Bay as nothing more than populism, saying Australia would be better to push for lower global standards rather than making cruise ships jump through extra hoops when operating here. travelBulletin MAY 2015
37
cruisE Report
STANDING OVATION FOR ORCHESTRA By Matt Lennon Sydney turned on a welcome befitting a visiting Head of State for the inaugural visit to the NSW Harbour City by the world’s largest family-owned cruise line, MSC Cruises recently. The visit by the 3200-passenger liner MSC Orchestra was the third last port-ofcall during a 33-night Grand Voyage from Dubai – a history-making sailing for the line which has never before in its 28-year history as a passenger cruise line ventured into Australian waters.
We cannot explain how ‘extraordinary it was to see her cruise past our iconic Harbour Bridge
’
MSC Cruises managing director for Australia Lynne Clark was sparkling in the days leading up to the event which she recalls as one of the highlights of her career. “Sailing into Sydney Harbour was a dream come true,” she told travel agents, re-sellers and industry partners at an industry function ahead of the Sydney sailing. “We cannot explain how extraordinary it was to see her cruise past our iconic Harbour Bridge.” Clark’s comments preceded a special stage performance of Gotham, one of 80 different productions in residence across
Fabio Gatti, MSC Fleet Entertainment and production manager travelled Down Under to mark the occasion. Right: The vessel’s interior has been kitted out with all the mod cons to be expected from a luxury passenger vessel.
12 ships fleet wide. Attendees then split up into groups for a tour of the ship’s 16 decks, viewing a number of cabins and amenities including multiple pools, whirlpools, restaurants, lounges, bars and boutique shopping options. Groups converged on the one of the main restaurants for some sustenance before disembarking. As a grand finale, Sydney
MSC Orchestra cruised into Australian waters for the first time this year, officially arriving on 13 March. 38
travelBulletin MAY 2015
turned on a spectacular fireworks display to send off MSC Orchestra out of the heads and towards Melbourne in style. However, not all of MSC’s Australian adventure went according to plan. The ship’s first scheduled call to Cairns was scrapped due to poor weather, with Cyclone Nathan forcing the vessel to press on to Brisbane to ensure it remained on schedule. Travel agents in the Queensland capital were dealt the honour of being the first in Australia to see the ship, escorted by Australia-based MSC staff on a series of ship tours. The line conducted similar tours for agents in Sydney and Melbourne, making the most of a rare opportunity to showcase one of its vessels without a flight to Europe. Addressing the audience in Sydney, Clark stressed that Australia had not seen its last MSC Cruises ship. While the Mediterraneanbased line operates predominantly in its homeland, as well as the Baltic region and the Caribbean, it is starting to show a greater willingness to spread its wings to other parts of the globe. In coming years, the line will take delivery of four new ships offering capacity for 5500 passengers each, undoubtedly making the resultant opportunities for MSC Cruises to bring its traditional European hospitality to a much wider audience too big to ignore.
cruisE REPORT
CLIA view Brett Jardine, general manager CLIA Australasia
clean cruising into the future With the spotlight falling on a range of issues during the recent New South Wales election, there has been some discussion regarding cruise ship emissions, so I’d like to take this opportunity to clarify some facts and provide some perspective. Passenger cruising makes up only 2% of Australia’s shipping industry and a small percentage of overall shipping activity in NSW, yet it is the cruise industry which led the international shipping community’s response to concerns about greenhouse gas emissions at the International Maritime Organization (IMO). The local cruise industry has participated in the NSW Environmental Protection Authority’s (EPA) consultations and assisted their scientific and engineering studies, which the EPA claimed were being prepared to inform the determination of future policy. Some cruisers may be aware of environmental controls that have been placed on all shipping in North America and Europe, where ships must limit the amount of sulphur present in their smoke stack emissions within a designated Emission Control Area (ECA). In North America, for example, that zone extends 200 nautical miles off the coast line. In Europe, a similar area has been implemented in the Baltic region. The limit introduced was 1% which was reduced to 0.1% sulphur content fuel from 1 January, 2015. In addition to this, the IMO has further mandated that shipping all over the world will need to adhere to the same requirements from 1 January, 2020.
COMMUNIQU É
The global cruise industry has been working with the IMO for more than a decade on this issue and is at the forefront of developing technology to ensure compliance from that time. With limited availability to low sulphur fuel in Australia and the difficulties in finding a one-size-fits-all solution to shore-side power, we believe the most effective way of reducing emissions is the development of scrubber technology.
FROM… KAREN CHRISTENSEN General Manager & Director Sales/Marketing, Australasia
BREATHTAKING ALASKAN ENCOUNTERS
The global cruise ‘industry has been
Alaska is a feast for the senses. A glacier calving with the roar of a thousand canons. Diamond-blue icebergs floating on a glassy bay. A humpback breaching in a spectacular display. Our Alaska itineraries allow your clients to spend more time in each port.
working with the IMO for more than a decade on this issue...
’
A scrubber is an advanced emission purification system that removes almost 100% of the sulphur dioxide emissions generated by a ship’s diesel engine. They work in a similar manner to a car wash with a powerful water spray breaking down the particle matter as it makes its way up the funnel. While it takes time and is technically difficult to install this technology, we believe this is something which is achievable by the IMO’s 2020 deadline, so we are working towards this outcome with our cruise line members. Protecting our oceans is not just the right thing to do – cruise lines have a vested interest in keeping the environment clean for generations to come.
After a day ashore, guests will enjoy an all-inclusive onboard lifestyle with gourmet meals, fine wines and a suite perfectly prepared by the butler. Silver Shadow’s 7-day Alaska voyages depart from May to September. Silver Privilege fares from au$3,450 per person.
headlines March & April 2015 27 Mar Carnival Corporation to add nine new ships 02 Apr Cruise lines flock into China 02 Apr NCL testing new features 07 Apr Scenic facing class action 09 Apr Avalon fears pricing culture
For a copy of Silversea’s Alaska brochure, visit tifs.com.au For more information or to book call 1300 306 872 or visit silversea.com
09 Apr P&O evolution continues 14 Apr Australia key for Uniworld 14 Apr Princess to South America 15 Apr Ovation of the Seas to homeport in Sydney 15 Apr Disney AvaViola charters
travelBulletin MAY 2015
Visit silversea.com for full terms and conditions.
39
industry in focus
by ting was joined from Air Marke cific Pa ay th Bill McNamara s from Ca d Richard Jone ey dn Sy Helen Grant an in t even Tourism Board at a Hong Kong last month.
There are few better ways to dust off the golf clubs than for a charity tournament, and these TravelManagers did so in fine form on Victoria’s Mornington Peninsula last month.
The weather put on a show for these Creative Holidays reps on a recent famil to New Caledonia courtesy of Aircalin and New Caledonia Tourism.
40
travelBulletin MAY 2015
Blue Lagoon Cruises had a busy month in March with over a dozen agents from Australia and NZ boarding Fiji Princess for some beachside fun. Pictured is the Flight Centre contingent from Victoria who also stopped in for a visit at Barefoot Kuata Island Resort to snorkel with sharks.
These NZ agents packed their cossies for a trade famil onboard Fiji Princess courtesy of Blue Lagoon Cruises. Dance performances and a traditional Kava ceremony was on the cards, topped off with a visit to a local island school.
It’s hard to knock back haggis on a trip to Scotland, and these agents gave it a whirl – with a shot of Scotch whisky - on a famil hosted by Qatar Airlines and Air Tickets in March.
may 2015
Hawaii Tourism Oceania got up close and personal with Channel 7’s Sunrise TV breakfast show hosts as part of a week long promo in March. Over 220 people travelled to Hawaii for the program including 60 people from the Sunrise cast and crew plus 130 viewers.
at an me of the good stuff kicked back with so n alo Av bassador at am m n tea tha e er Th nth, with none oth mo t las ey dn Sy in industry event Deborah Hutton.
Allison Roberts and Kylie Mann from TFE Hotels were all smiles at the Travel Daily/JITO Social Networking Night at Sofitel Wentworth Sydney.
Linda Kelly-Smi th from Travelpor t and Kevin Zha from China Sout ng hern Airlines stop ped for a quick photo at the Trav el Da ily/JITO ne tworking night.
Skiing, Hawaiian sunsets and thrill seeking rides at Universal Studios is the perfect combination for any famil, and these nine agents soaked it up courtesy of SkiMax and Hawaiian Airlines last month.
It was all luxury for these Aussie agents who were treated to a five-star rail journey on the Majestic Imperator through Austria as part of a week-long river cruise on MS AmaDante between Nuremberg and Budapest.
travelBulletin MAY 2015
41
Canada & Alaska
WHERE THE
Wild
THINGS ARE
Bow Lake between Banff and Jasper, JvL, bit.ly1PmjOHq
42
travelBulletin MAY 2015
Canada & Alaska By Louise Wallace
A
USTRALIANS have an insatiable curiosity when it comes to Canada. Whether it’s the moody shift in seasons, the surging rivers and snowcapped peaks, or that sickly sweet maple syrup – Canada is an exotic land. And like the 230,000 Australians that venture across the Pacific Ocean to satisfy their curiosity each year, she worked her magic on me during a recent visit. My wanderlust for Canada bit hard, landing me in the sleepy town of Nelson in British Columbia for around 15 months. Tucked in the heart of the Kootenays, Nelson’s snow capped peaks never failed to impress, but truth be told, they were molehills in comparison to the endless peaks in the Rockies. There’s a reason that glamour shots of the Rocky Mountains are pasted on postcards and marketing material – everything else is a like a tasty prelude to the main event; the Rockies. The Icefields Parkway is at the heart of the action, stretching right through the mountain range from Edmonton in the north to Calgary down south. Hailed as one of the world’s most scenic highways, the stretch of road from Jasper to Lake Louise is where the ‘ohhs and ahhs’ involuntarily kick in, with over 100 glaciers, waterfalls and impressive rock spires dotted on each side of the highway. Think emerald green lakes, dramatic peaks, lush green meadows and gob smacking views around every corner – and you’re on the right track. The bustling ski town of Banff is like the Whistler of Alberta – and it reels in Aussies like Bondi does Brits. The number of Australian tourists is on par with Canadians in some bars and clubs, but drinking VB with Aussies in a packed pub isn’t what we came here for, so we head on to the little town of Canmore about 20 clicks south. Canmore is like Banff’s little sister, attracting just a fraction of the visitors – but that’s part of its charm. With just the right mix of boutique clothing stores, art outlets and no-frills restaurants – without the crowds – it ticks all the boxes for travellers who want to take in the great outdoors rather than the nightlife. And that’s why we’re here. Truth be told, we’re here for the climbing which is world class – or so we’re told. But with metres of snow still on the ground at the most popular climbing haunts, we dust off the boots and settle on the hiking trails instead. With literally hundreds of kilometres of trails to choose from, we settle on a sedate 4km venture along the Grassi Lakes trail,
just outside of Canmore. Surrounded by young families, we opt for the ‘difficult’ trail to shake the crowds and strollers, and we’re soon rewarded with birds eye views of lush green meadows strewn with yellow daffodils. We’re off to a good start, bounding over rocky trails with panoramic views of Canmore below, but about 20 minutes into our venture, the clouds start to blow over, as if issuing a stern warning. Without mention, we press on along a scenic wooded trail en route to the waterfall which we’re promised ahead. But as the billowing wind picks up, the chances of claiming our reward seem dashed. And as the lashings of rain sting our eyes, it doesn’t look good. Soaked through, we press on figuring that there’s no way back after reaching the point of saturation. Struggling to see the joy in a sodden hike, we reach the waterfall having seemingly achieved what we had first hoped – there’s not another person in sight. But as if on cue, the rain eases almost apologetically, revealing a pristine turquoise lake bordered by towering evergreen pines. Returning to the car, sodden and cold, we admit defeat and decide to press on from Canmore to Radium Hot Springs on the recommendation of dozens of locals back in Nelson. The GPS tells us it’s a two hour drive, so we towel off and hit the road in anticipation of the warm mineral waters ahead.
is like Banff’s ‘littleCanmore sister, attracting just a fraction of the visitors - but that’s part of its charm
’
With the dramatic mountain scapes behind us, the heater blaring, we make our way along the wide Canadian roads with a renewed sense of optimism. As we settle into our heated leather seats, we spot a black bear and her cubs along the side of the road and can’t help but pull over for a look. Almost certain that there’s a rule book somewhere that says it’s not a good idea, we keep our distance and press on for the hot springs, pulling into the tiny blink-and-you’ll-miss-it town of Radium Hot Springs a few hours later. Surprisingly busy for a tiny town of just 800 people, we waste no time dipping into the pools which serve up steaming mineral waters backed by an impressive backdrop of towering pines. We laugh off our misfortune with Mother Nature as our muscles relax. But our Canadian curiosity not yet satisfied, we begin plotting the next leg of our adventure. Next stop, Penticton. travelBulletin MAY 2015
43
Canada & Alaska
BC
HEATS UP
BRITISH Columbia is shaking its reputation as a winter-only destination, with spring and summer bookings now overtaking the cooler months as multi-touring options win over more Australian travellers. While the popularity of Whistler’s ski slopes has not waned, Destination British Columbia’s Joanne Motta said the province was gaining a reputation as a year round destination with an array of outdoor and wildlife activities on offer.
Wildlife tours in remote lodges, whale watching tours, and outdoor activities by the Pacific Ocean were capturing the interest of more Australians, she said, while family travel and FIT trips were also going strong in the spring and autumn. “While many Australians think skiing is what everyone goes to BC for, about 65% of our visitors come from spring to autumn,” she said, adding that escorted coach tours comprised the bulk of business followed by
independent travel. Motta said the Canadian winter was still a peak season with a high volume of families travelling over the school holidays, while the warmer months often attracted older clientele. Summer visitors also stayed longer on average, Motta said, with skiers averaging 14 days and summer travellers averaging at least 16 nights in the country. “Aussies are travelling at a different time of year to take up specials and they are booking further and further in advance to be sure they get what they want,” she told travelBulletin. Motta said Australians were also combining more activities on their stay to make the most of their vacation time. “Australians are an adventurous bunch so they often travel further afield to Vancouver Island for whale watching. They also travel to Whistler both in the summer and winter, they drive across BC to the Rockies and they love their wildlife,” she said. While Destination BC expects to see a sustained interest for summer travel, Motta said the slopes were unlikely to lose their appeal any time soon. “Australians are one of the biggest markets for skiing in BC. The quality of snow is consistent, the prices are right, and ski in-ski out options are very strong with the family market,” she concluded.
Bucket list tick for Aussies
Cosmos last minute deal COSMOS is offering a discount of $300 per couple for travel on its flagship Canadian & Alaskan Masterpiece itinerary. Released to coincide with the tail end of the 2015 season, the deal is expected to sell out in the coming weeks, with departures scheduled from May to September. Including sightseeing in Vancouver, Banff and Victoria, the 19-day tour features a Rocky Mountaineer rail journey and travel on the Sulphur Mountain Gondola in Banff National Park. Highlights include travel to the Glacier National Park, the Icefields Parkway and Lake Louise. Also included is a seven-night cruise to Alaska taking in Glacier Bay, Inside Passage, Skagway, Juneau and Ketchican. While prices generally lead in from $232 per person, entry level options are now sold out with options on Rocky Mountaineer’s Silverleaf and Goldleaf service remaining. Total costs lead in from $5023 including accommodation, service charges and some meals. 44
travelBulletin MAY 2015
SCENIC has reported ongoing growth for its Canada line-up, with Alaska also making a comeback as the northern lights catches the interest of more travellers. Scenic’s Canada product manager Simone Bezzina told travelBulletin that Canada remained one of the operator’s key markets, representing its second largest product market behind Europe. She noted a sustained increase in sales as Australians continue to view Canada as a bucket list item, with bookings for Scenic’s Alaska land and cruise packages also increasing 30% in 2015. “There has been an acquired interest in the Yukon for the northern lights and we are seeing more interest in later departures where it’s possible to see the northern lights,” she said. Bezzina also signalled a shift in Scenic’s key demographic to a younger and “more active” market, adding that itineraries have evolved in line with the changes. Activities on the Scenic Futures program now include active options such as dog sledding in the winter, the chance to meet a Canadian Mountie, and travel on a horse drawn sleigh. Scenic offers seven itineraries in Alaska and 21 in Canada, including the Rockies & Alaskan Cruise. The 22-day land and cruise package covers Vancouver, Victoria, Kamloops and Alaska from $11,745. The Rockies & Voyage of the Glaciers covers similar ground but also includes a riverboat cruise in Fairbanks from $13,260.
Canada & Alaska
Rail Plus add-ons Rail Plus is offering a number of savings for bookings secured by 29 May, including a free additional hotel night in Seattle, Vancouver of Calgary for packages of four days or more. Bookings of seven nights or more also receive a free city tour or airport transfer in addition to the free night of accommodation. The deals apply to selected 2015 departures. Rail Plus offers a comprehensive range of rail journeys across Canada including travel on the Rocky Mountaineer and VIA services such as The Canadian which recently unveiled a new luxury Prestige Class. Linking Toronto to Vancouver, the journey covers around 4500 kilometres including the lakes in Northern Ontario, the western prairies and the Rocky Mountains. The service, which carries over one hundred thousand passengers each year, also received a $22 million overhaul in 2010-2012 as part of an extensive modernisation project. While Rail Plus offers a range of tran product, the company also creates tailored itineraries incorporating non-rail content such as hotels, cruises, city stays and sightseeing experiences. Agents also have access to the company’s dedicated Canada division which is staffed by specialist consultants with in-depth product knowledge and on the ground experience. Contact www.railplus.com.au or phone a Rail Plus specialist directly by calling (02) 8779 4828.
Aussies warm to new Albertan attractions
Moraine Lake, Banff National Park, Imagea.org. CC bit.ly1CmncYR
THE Canadian province of Alberta is capturing the interest of more Aussies as new attractions come online and more competitive airfares hit the market. Australians have long had an affinity with Canada thanks to a shared appreciation of adventure and wildlife experiences, but Travel Alberta’s market development director for Australia Lizzie Doyle told travelBulletin that interest in Alberta was growing as awareness increases and new nature experiences emerge. Caving tours and learn-to-play ice hockey experiences are new to the line-up in Canmore, while 2016 will also see the launch of the Banff Winter Magic Tour including horse sleigh rides, snowshoeing and a visit to the Wildlife Sanctuary. Available through Adventure World, prices for the seven-day tour lead in from $1840. Winter tours are also winning favour among Australians, with travel in Jasper and the Icefields Parkway into Banff National Park stand out performers, Doyle added. While increased air access from
ALASKA/CANADA 2016 The majestic wilderness of the last frontier sparkles with awe-inspiring wonder when discovered with Crystal. From its breathtaking glaciers and impressive wildlife to its rich Tlingit heritage and fascinating gold-rush lore, here is a land that enchants everyone who visits. Crystal Serenity offers a choice of seven departures of 7- to 10-days in duration from June through August. Cruise-only fares start from US$3,165* per person double occupancy (V6312). To maximise your shore-side exploration, our collection of optional Crystal Adventures offer guests a variety of unparalleled options from active adventures to leisurely sightseeing.
T H E A L L I N C L U S I V E C R YS TA L E X P E R I E N C E ® On board, indulge in the finest services and amenities at sea including: • Select fine wines, champagne and premium spirits in all restaurants and bar service throughout the ship • Up to seven evening dining options* • Award-winning entertainment • All non-alcoholic beverages including bottled water, soft drinks, fresh juices, teas and coffee served throughout the ship • 24-hour room service • Pre-paid gratuities for housekeeping, bar and dining staff • Golf clinics with PGA instructors • Spacious 360° teak Promenade Deck • Pilates, yoga and spinning classes • and so much more •
FOR RESERVATIONS AND BROCHURES CONTACT WILTRANS INTERNATIONAL - 1800 251 174 * Cruise fares subject to review 30 April 2015, at the time of your purchase, fares may be higher. Fare quoted in US dollars, per person, based on double occupancy for V6312 Vancouver to Anchorage in accommodation category C3. All itineraries, fares, programs and policies are subject to change. Other restrictions and terms and conditions apply. Contact Wiltrans International for full terms and conditions. ©2014 Crystal Cruises, Inc. Ships’ Registry: The Bahamas. Issue date: 21 April 2015
Qantas and Air New Zealand has helped to deliver a boost to Canadian tourism, Doyle said there was still room for improvement with the uptake of self-drive itineraries. “Self-drive is an area we would like to see more growth. Australians don’t need any special international license and the roads are very wide making it an easy way to get around,” she commented. Doyle said awareness was the key to ensure Australians realised the simplicity of self-drive holidays in Alberta, and reiterated the value of the trade in conveying the message to consumers. Travel Alberta last month rolled out a new online training platform featuring presentations and prerecorded webinars on tourist hot spots. Including links to fact sheets and brochures, the e-course also includes training presentations from NTOs and information to help agents to fine tune their product knowledge. Additional webinars are in the pipeline for Alberta’s ski offering in the Rockies. n www.travelalberta.com.au/trade
Canada & Alaska
Full steam ahead for Rocky Mountaineer
CANADIAN icon Rocky Mountaineer is rolling out a series of changes to its 2016 program as the rail operator looks to revamp its offering and win over more repeat travellers. Much work is going on behind the scenes as the operator prepares for the launch of its 2016 season, with next year’s release to see the launch of more circle journeys which travel to and from the Rockies on different routes. New itineraries featuring more days on the train will also be included, and the flagship Western Explorer tour will be reduced from eight to six days and operate as a circle journey. In other changes, Rocky Mountaineer will also pull the pin on its day trips to Whistler which have been operating for 15 years, instead rolling out a three-day package with a night in Whistler and
Q&A
Canada and Alaska have something for every type of traveller, from young couples to families and retirees. But as Infinity manager and Canada specialist Anna Kearney explains, targeting the sell is crucial to success.
Is there much interest in Canada from Australian travellers? Yes, but not as much as the US. Canada still seems to be more of a group touring destination rather than FIT which needs to change. Canada is so easy to explore independently and there’s so much to see. Which provinces are most popular? British Columbia and Alberta are definitely the most popular. Aussies flock to Whistler and the Rocky Mountains as they’re iconic destinations for Canada. What kind of places and activities would you recommend? I highly recommend the Rockies area including Banff, Lake Louise and Jasper. Self-driving is one of the best ways to get around as the highways are so easy to navigate. I would recommend driving up the Columbia Icefield and stopping off to do the Athabasca Glacier, and it’s definitely worth 46
travelBulletin MAY 2015
travel up to Quinell and on to Jasper. Speaking at length with travelBulletin, Rocky Mountaineer director APAC Robert Halfpenny explained that the changes followed the release of new research last year which showed that travellers were seeking more circle journeys and more on-train days. “We never would have thought that passengers wanted to spend more time on the train – so we’re heavily investing in improving our service to keep them coming back,” he said. Halfpenny said the operator was making gains with up to two million passengers each year – a third of which are from the Australia market – but he conceded that there was always room for improvement. “We’ve had four record breaking years out of Australia, but we are doing what we can to get another run at it this year,” he said, adding that early indications were “promising”. In other changes, Rocky Mountaineer is discontinuing its entry level Red Leaf service in 2016 and adding more Silver and Gold carriages with the plan of having 20 Silver Leaf carriages in service within the next three years. “Silver Leaf has done better than we expected and it was cannibalising our Red Leaf, so we’re cutting it and heavily investing in more luxurious carriages,” he said. Halfpenny said the weakened Australian dollar against the Greenback was “concerning” for the operator as most passengers extend their stay with travel to the US, and reiterated the importance of the trade in delivering new bookings. “Direct bookings are just not going to happen for us, so the trade are absolutely critical for us. As a long haul luxury product, people want help with their bookings so our strategy is to really drive our message to travel agents,” he said.
doing a helicopter tour over the Rockies, and going snowboarding in winter. What are Canada’s top three selling points from an agent’s perspective? The northern lights and the Rockies, as there’s so much beauty and adventure. Also, the French culture on the east side of Canada which is also home to Niagara Falls. What about Alaska? It seems to have dropped off the radar in recent years – is there much interest among Australians? Not as much as there should be, and really only for cruises rather than independent travelling. It’s not advertised here enough. Denali National Park is incredible but not very easily accessible. What kind of activities are most popular? Snowboarding and skiing in the winter months, wildlife tours, and city tours.
Any tips on how to sell Canada/Alaska? Advise your clients to spend all their time outside, and to be adventurous. Exploring the wonder of the outdoors is easy in Canada and Alaska. Hiring a car and driving between towns can be time consuming but it’s worth the scenery on the way. There is always an amazing time of year to travel to Canada. What do you love about Canada/Alaska? Both destinations offer incredible natural beauty and multicultural cities. The people are extremely friendly and laid back, and make visitors feel right at home. Travellers will feel an incredible sense of belonging in what I call the Motherland and they will miss it as soon they leave, always wanting to go back and experience more of the wonder it has to offer.
Incredible sights
at an amazing price!
Priced from
$265 per day With Cosmos, your clients enjoy the benefits and convenience of escorted travel, along with plenty of free time to explore and immerse in local culture.
Canadian & Alaskan Masterpiece 19 days from Vancouver to Vancouver 12 day land tour including 2 day Rocky Mountaineer SilverLeaf rail journey, 7 day Alaska Cruise aboard Holland America’s MS Volendam Visit Columbia Icefield, Butchart Gardens, National Parks & Lake Louise
from $5023 per person twin share Quality Accommodation First-class motorcoach
Professional Tour Director Visits to must-see sights
2015 DEPARTURES
SAVE $300 per couple*
More ways to save!
SAVE $100
Per Couple Second Tour Discount*
SAVE 5%
Repeat Traveller Discount*
To book call 1300 130 134
or go to globusfamily.com.au/onlinebookings *Terms & conditions: Save $300 per couple offer valid for new bookings to 30 May 2015. Prices correct as of 15 April 2015 and include savings of $150 per person. All care is taken to promote correct pricing at time of printing, is subject to tour availability and will be confirmed at time of reservation. From $5,023* per person, twin share departing 18 July 2015 includes 19 day tour (Silverleaf & Inside Cabin), taxes, cruise line non commissionable fare, government taxes, and fees of $502. Optional pre-paid gratuities for Tour Director and Driver are an additional $113 per person. Non-refundable, non-transferable deposit of $250 per person/per tour required within 14 days of reservation. Repeat Traveller Discount: must be a Journeys Club member and quote membership number at time of booking to receive 5% discount on the land-only portion of the core tour and twin share price, not including extra nights’ accommodations, extensions, taxes/fees, tips and supplements/reductions. Offer can be withdrawn or amended at any time without notice. Additional may restrictions apply. For full terms and conditions refer to the 2015 Cosmos United States & Canada brochure or visit www.cosmostours.com.au. Licence: 2TA000637
Canada & Alaska
THE CANADIAN WAY Aussies have a strong affinity with Canada, but the countries couldn’t be further apart in some ways – and not just geographically. Here are five quintessential Canadian experiences that are sure to whet the appetite of Australian travellers.
1 2
With over two metres of annual snowfall in some areas of British Columbia, the rapids are raging come springtime. Slocan River just outside of Nelson ticks all the boxes for adrenaline junkies and oldies alike, with guided tours on gentle rivers and hardcore Class IV rapids. Nelson Whitewater Rafting offers tours from May to September including all gear, training and transfers. n www.nelsonwhitewaterrafting.com
Niagara Falls Attracting around 30 million visitors every year, Niagara Falls hardly needs an introduction. Pumping out around 568,000 litres of water per second, it’s no surprise that visitors make the trip to Ontario to see the turbulent rapids. Niagara Helicopters offers year round guided tours complete with individual headsets and taped commentary. It’s all over in about 12 minutes, so best to take the camera on this one. n www.niagarahelicopters.com
3 4
Whitewater rafting in BC
Catch an ice hockey match Aussies may have a soft spot for footy, but Canadians put us to shame with their love of hockey. Catching a home stadium ice hockey game is a sure crowd pleaser – it’s fast, rough and has its own thrill. Each province and region has its own team so you can track down the right match for your clients from October to April. Tickets are generally purchased on the ground.
Eat poutine The tastiest food is always devastating for the waist line, and the same can be said for Canada’s French-Canadian classic, poutine. The ingredients are simple – hot chips, fresh cheese curds and oodles of brown gravy. Recipes vary between provinces but no matter where your clients manage to get their hands on it, piping hot poutine is damn delicious.
5
Wine tasting in the Okanagan Valley Known as the Napa Valley of the north, the Okanagan Valley’s warm climate produces some tasty drops that won’t disappoint. A number of tour operators service the region including Okanagan Wine Country Tours and Uncorked Wine tours. There is also plenty of accommodation ranging from 3 to 5 star.
48
travelBulletin MAY 2015
Great Train Journeys OF THE WORLD EUROPE | ASIA | NORTH & SOUTH AMERICA | AFRICA | INDIA | RUSSIA | AUSTRALIA
Rail Plus operates a dedicated Canada division staffed by specialist consultants, who can offer expert advice and help create tailored itineraries for your clients.
Rocky Mountaineer
Contact our dedicated Canada consultants for further enquiries: P: (03) 8779-4828 E: GreatTrainJourneys@railplus.com.au W: www.railplus.com.au
KOREA
Winter in Myeong-dong, Ha Jeong Jeong, CC: http://bit.ly/1HoiSAl
Real awakenings:
KOREA Uncovered
Divided by a militarised border, Korea has struggled to make the cut when it comes to the tourist map. But with seductive landscapes, 5000 years of rich history, and a buzzing metropolis that rivals some of Asia’s most frequented hubs, there’s more to Korea than capitalism and politics as Catherine Marshall writes.
T
HE landing into South Korea is quite fantastical. My Korean Airlines jet sinks gently from the sky west of the megalopolis of Seoul and touches down on a runway which, until fairly recently, was ocean. Now the gateway to South Korea, Incheon International Airport sits on the piece of land which was reclaimed and connected to two smaller landmasses to create Yeongjongdo Island. The construction was part of a mammoth project aimed at accommodating a dramatic increase in travellers to South Korea. Featuring a golf course, spa, ice skating rink, casino and the Museum of Korean Culture, it was recently named by Skytrax as the world’s second best airport, just one step behind Singapore’s Changi Airport. But while Incheon International Airport conspires to detain visitors with its array of activities, the lure of what lies beyond is too great. Yeongjongdo Island is itself 50
travelBulletin MAY 2015
connected to the mainland by two bridges and the mainland in turn is connected to South Korea’s abundance of cultural, historical, natural, culinary and modern wonders that are slowly coming to the attention of astute Australian travellers.
The essence of Korea is ‘easily discovered in the lanes and alleyways that spread outwards from Seoul’s main roads
’
Last year, 141,201 Australians and 30,805 New Zealanders visited Korea, and in January this year, Korean Tourism Organisation (KTO) recorded an 11% increase in tourist numbers from this region. Korea’s attractions are self-evident; around every corner of this densely-populated yet orderly country lies
some specimen of history and culture, world heritage and design, fashion and cosmetics, trendy restaurants, bars and street food. The fact that its safety record is comparable with that of Japan provides yet another incentive for visitors to consider it as a holiday destination. I focus my own explorations on Seoul, the thrumming capital city of South Korea, and am surprised to find that although its broader limits contain some 23 million people – the same size as the entire population of Australia – it is well-ordered and neat-asa-pin. Even the bustling city streets feel friendly and navigable – an atmosphere that is enhanced by the 11 kilometre long Cheonggyecheon Stream, once an elevated concrete highway which has been transformed into a waterway flanked by trees, sculptures, self-guided walking routes and nooks for quiet contemplation. The stream is set below street level and flows right through the city.
KOREA The essence of Korea is easily discovered in the lanes and alleyways that spread outwards from Seoul’s main roads. Multilingual ambassadors from the Seoul Tourism Association – clothed in easy-to-spot red T-shirts – patrol the tourist hot spots and point me in the right direction. I lunch on bulgogi (marinated, barbecued meat served with cellophane noodles), and kimchi (Korea’s famous fermented cabbage). I am mesmerised by street vendors selling boiled silkworms and spinning kkul tarea, a feathery sweet made from cornflour and fermented honey. I take afternoon tea with a group of felines at one of the city’s hugely popular cat cafés in Myeong-dong, a hip shopping precinct which sells edgy clothing, trendy food, futuristic cosmetics and – as is the way in modern Korea – ubiquitous cosmetic procedures. It’s places like Myeong-dong that are helping to redefine Korea’s tourist demographic. While the country has tended to be more popular among the mature, well-travelled market, younger travellers are taking note of its reputation as a global leader in pop culture, fashion, food and cosmetics. So keen was KTO Australia to capitalise on this potential, and help grow tourist numbers to a projected 20 million this year, that it appointed The X Factor 2013 winner Dami Im as an Honorary Tourism Ambassador for Korea in Australia. “We think that Dami’s background as a Korean Australian and her great love of her birth country, as well as her huge fan base and connection to many Australians through her music will make her the perfect tourism ambassador for Korea in Australia,” Korea Tourism Organisation director Sang Weon Je said. It’s a strategy that has paid off, with the organisation’s online campaign which promoted Dami’s five top Korea destinations attracting four times the amount of traffic compared to regular promotions. The move has also succeeded in promoting Korea as more than just a futuristic megalopolis as it is so often represented. As a Korean Australian, Dami has insider knowledge of the experiences likely to resonate with Aussies (see right). Her top picks move beyond the city I’ve so ravenously explored to reveal a country filled with even more enriching experiences, from the ancient to the new. As travellers continue to search for meaningful and transformative travel experiences, the breadth of product in the adventure travel market represents a great opportunity for agents.
Dami Im’s Top Five Korea is a unique blend of old meets new, but it’s also an untapped destination for Australian travellers. X Factor Australia winner Dami Im shares her top tips to make selling Korea a cinch.
Jeonju Hanok Village Located in Korea’s southwest, this village comprises more than 700 preserved, traditional Korean homes. The very antithesis of bustling Seoul, Jeonju Hanok Village is known among locals as ‘slow city’, and it is here that your clients will find Korea’s very best bibimbap (a signature dish of rice and vegetables).
2
1 Haeundae Beach Beaches aren’t front of mind when it comes to Korean holidays, but resorts line the shore at Haeundae Beach in Busan throughout the summer months. The sea is also good for sustenance and fresh fish can be bought at the famous Jagalchi Seafood Markets.
Samcheong-dong Located in the heart of Seoul and running parallel to Gyeongbok Palace’s wall, this quaint and peaceful side street is a culture vulture’s delight, brimming with cafes, antique shops, museums and galleries, craft shops and famous dumpling and noodle restaurants.
3 DMZ
4
Politics and conflict are never far away, with the Korean Demilitarised Zone site just 50 kilometres north of Seoul. Visitors to South Korea can take part in various tour programs along the 250km long DMZ which serves as a buffer between North and South Korea.
Seoraksan National Park Soaring granite mountain peaks, deep valleys filled with Buddhist temples and icy streams, and wildlife such as Asian black bears, otters and Siberian flying squirrels – these are just some of the wonders that await for visitors travelling to the wilderness region that lies on Korea’s east coast.
5 travelBulletin MAY 2015
51
KOREA
Agent Know-How Korea Tourism Organisation has all the insider knowledge on the best time to travel to Korea and where to find the top attractions. The NTO also shared some tips on how to sell the destination to clients.
Korean popularity boost KOREA is gaining popularity for stopovers by Australian travellers, as clients look for an alternative transit port when travelling on to Europe. While Korea has traditionally rated highly on the agenda for Chinese tourists, it is also winning favour as a stopover destination for Australian travellers, according to TaiwanHolidays marketing manager Ann Hung. “Korea is the new stopover destination in Asia because Australians want a break from Hong Kong and are curious about Korea,” Hung said, adding that baby boomers were leading the trend. “There is also more interest for Korea’s culinary experiences and culture.”
many Australians ‘areNotaware that Korea is
very beautiful around the cherry blossom season
’
While awareness of Korea’s attractions was “lagging” in the Australia market, she said the destination was seeing an upswing in inquiries, particularly around the cherry blossom season in March. “Not many Australians are aware that Korea is very beautiful around the cherry blossom season in the Busan area. In fact it’s one of the best times to visit,” she said. While stopover stays of three to four nights remain the most popular in the Australia market, Hunt said longer stays of up to 10 days were also on the rise. More Australians are also combining travel to Korea and Japan, and tagging travel to Taiwan onto their journey, she added. TaiwanHolidays offers a four-day Seoul Stopover package including transfers from Incheon Airport from $610 per person. The eight-day World Heritage Historical Korea tour also leads in from $2670 per person.
52
travelBulletin MAY 2015
How can travel agents improve their knowledge of Korea? Our local website www.visitkorea.org.au is a great place for travel agents to gain knowledge about Korea easily and quickly. The website is aimed at the Australian market and allows agents to learn about Korea’s major attractions, cuisine, culture and more. It also includes a list of travel deals and products available to Korea from this market. What training is available to agents to improve their product knowledge? We have an online education program on our website where agents can also download e-books, guides and maps. Visit bit.ly/1JLtuHw for details. What kind of travellers are generally interested in Korea? Most Australians travel to Korea to experience its 5000 years of culture and history, its UNESCO World Heritage sites, and its world class cuisine. There is also much interest from young people to see Korean Pop (K-Pop) and the whole fashion and youth scene. What are the key attractions for Australian tourists? The capital of Seoul is on everyone’s list as there is so much to see and enjoy in the city. Outside of Seoul, popular destinations are the ancient capital of Gyeongju in the south east corner of Korea, the port city of Busan with its famous fish markets, as well as Jeonju with it’s beautiful 400 year old Hanok Village. Unknown to some, 70% of Korea is mountainous so there are great opportunities for nature lovers, cyclists and skiers to enjoy the beauty of nature. How does Korea’s price point compare to other Asian destinations? Korea is a relatively reasonable country to visit in terms of price. There are many accommodation options and dining is reasonably priced compared to Australia. Getting around the country is also relatively inexpensive – a seven-day rail pass costs around $180 through Rail Plus. Any tips for travel agents wanting to sell Korea to Australian travellers? Many Australians have travelled extensively in Asia, and Korea appeals to Australians who have a great interest in the culture and history of Asia. It’s also a great place for dining, shopping and entertainment. And finally, how can travel agents join famils to Korea? Famil trips are generally organised by airlines, and KTO usually offers on the ground support in Korea.
C
M
Y
CM
MY
CY
CMY
K
www.koreanair.com
Direct aisle access Because you canÕt always choose who you sit next to. Experience Prestige Class, the most comfortable way to fly. Relax in the privacy of our spacious Prestige Suites, knowing that direct aisle access guarantees youÕll never disturb anyone, or more importantly, be disturbed. And with a larger screen and more advanced AVOD, itÕs like having your own home entertainment system in the air. Fly the only Business Class that puts you first. Departure
0745
Daily
1750
Arrival
1845
Daily
0615
Arrival
Sydney
Seoul +1
Sydney : 02 9262 6000 / Brisbane : 07 3326 6000
Departure
KOREA
Korean Air global fleet boost Korean Air has added another fuel efficient aircraft to its global fleet with its new A330-300 now operating on Australian services to South East Asia. The aircraft, which came into operation last month, joins the fleet serving on Korean Air’s routes to Sydney, Brisbane, Singapore and Oceania. The latest addition marks Korean Air’s 18th A330-300 aircraft, with the carrier also planning to introduce three more to the line up by the end of the year. The additional A330s-300s will be fitted with a revamped business class, called Prestige Class, which features privacy panels between seats, individual ottomans and new in-flight entertainment systems. All seats are fitted with faster audio and video-on-demand systems, mood lights and reading lamps.
Q&A
How easy is it to sell as a holiday rather than a transit destination? It can be difficult but it is getting easier and people are becoming more intrigued by its skiing potential. Korea is one of many Asian countries competing for the attention of Australian travellers – what does it have to offer that other destinations don’t? Good shopping, good food with spicy cuisine, friendly people, and modern cities. Which attractions do you recommend for first time visitors to Korea? Seopjikoji on Jeju Island for its beautiful and spirited garden, its seashore and folk
travelBulletin MAY 2015
Northern wanderings North Korea’s tourism industry may be a fraction of its southern counterpart, but Perth-based adventure travel operator Travel Directors is continuing to operate a fully inclusive tour for up to 15 passengers. First launched in 2008, the ‘North Korea: A Hidden World itinerary’ begins in Beijing for two nights before joining the K27 Express train through to Pyongyang. Passengers have the chance to stop at the Demilitarised Zone (DMZ) which was constructed at the end of the Korean War to separate North and South Korea. Also included is travel to Kim Il Sung’s mausoleum
and the American intelligence ship which was captured by North Korea in 1968, the USS Pueblo. The 13-day tour also includes a live performance at the Arirang Festival before circling back to Beijing and onwards to Australia. Departing 29 August, prices lead in from $10,590 per person including return economy airfares from all Australian capital cities, ground transportation, accommodation with most meals, and transfers and visas. Group sizes are limited to 10-15 pax. n www.traveldirectors.com.au
While Korea has been slow to register on the radar of many travel agents, it holds many attractions for Australian travellers, as Mandarin World Tours’ Tracey Olsen explains.
How popular is Korea among Australian travellers? Korea is more popular as a stopover destination than as a stand alone destination for Australians.
54
Kumsusan Memorial Palace, John Pavelka, CC: http://bit.ly/1by5nRx
village. Seoul is a must for its shopping, and Gyeongju is a fantastic historic village. I would also recommend Andong and its Bulguksa Temple which is UNESCO World Heritage listed, Wonju to see the Chiaksan Mountain and Seom River, PyeongChang to see the venue for the 2018 Olympic Games, and Gangneung to enjoy the beautiful rainforests. Which off-the-beaten-track areas do you recommend to your clients? Gongju, Buyeo, Jeonju, Gwangju, Suncheon, Yeosu and Jinju. What activities would you include on the first-time visitor’s itinerary? The Bukchon Hanok Village tour, a Seoul City shopping tour, the Gangnam tour and also a live show in the Nanta Theatre. When is the best time to visit Korea? Any time is good to visit but it’s best
to avoid the cooler months from December to February. Seoul is the gateway to Korea – which hotels would you recommend in the city? For four-star in Seoul we use the Manu Hotel, and for five-star we recommend the Hyatt, Hilton or Marriott. Any tips for travel agents keen to sell this emerging destination? Korean Airlines is easy to fly with at a very competitive price. Korea also has a great metro system, good food, great service and amazing sights. What are your five top dishes, drinks and delicacies? I would recommend seolleongtang (ox bone soup), sundubu jjigae (tofu stew), yangnyeom tongdak (seasoned fried chicken), and hoddeok (sweet, syrupy pancakes).
Korea Tourism Organization Sydney Office Tel: +612 9252 4147/8 Email: visitkorea@knto.org.au Website: www.visitkorea.org.au
hawaii
By Lee Mylne
A
USTRALIAN families are flocking to Hawaii in increasing numbers, keen to experience the soft adventure and culture of the many islands. While Hawaii’s romantic appeal for couples and honeymooners has not waned, families with children are the strongest growth market for Australians travelling to Hawaii. “We’ve seen great growth over the past three years,” says Hawaii Tourism Oceania (HTO) country manager Australia Ashlee Galea. “In 2012, 19.5% of Australians travelling to Hawaii were families with children, but now that number is 29%.” Seeing that growing trend, HTO has developed a dedicated guide to help Australians plan their family holiday to the Hawaiian Islands. Galea says it is a useful tool for agents, as well as being something they can give their clients. “Hawaiian Airlines flights leave Sydney at 9.20pm and fly through the night which makes an easy transition for people travelling with children,” she says, adding that the islands’ many soft adventure options make Hawaii a popular choice for parents with “tweens or teens”. Over the past five years, Australians have become more aware of the attractions of the
56
travelBulletin MAY 2015
HAWAII
Need to know Getting There Air access from Australia to Hawaii is a cinch, with Qantas, Hawaiian Airlines, Air New Zealand, United and Jetstar all operating regular flights.
When To Go Summertime between May and September is the best time to make the most of the weather.
Currency Hawaii uses US currency, with one US dollar trading at around A$0.76 at the time of going to print.
Languages Language is no problem for Australians, with English and Hawaiian the national languages.
Getting Around
All images courtesy of Hawaii Tourism Authority
“neighbour islands” and have increasingly travelled beyond Oahu. “We have recognised how important it is for people to be able to differentiate between each island, as each has its own unique offering. We are looking at more consumer brand activity and trade training this year to highlight the personalities of each island,” says Galea. Mahalo Month, now in full swing, is also an opportunity for agents to learn more about Hawaii, with twenty partners from Hawaii taking part in the annual Australian road show this year. Hawaiian-based Outrigger Resorts vice president corporate communications Bitsy Kelley, who travelled to Australia last month, agreed that Hawaii was a great destination for Australian families looking to indulge their love of the outdoors and the ocean. Australia is a key source market for Outrigger Resorts, representing about 12-15% of guests, all who are looking for a variety of experiences, Kelley says. “The family market is big, but we cater to all ages and all types of travellers, including business travellers and young people looking for shopping or nightlife,” she says. As part of its aim to “incentivise and educate” travel agents as key partners, the Outrigger Expert Agent Program is planning some future changes which include booking
bonuses, double reward points for specific properties, and exclusive familiarisation invitations. It has also recently released its 2015 Travel Professionals Guide which includes detailed information on Outrigger’s 24 properties on Ohau, Maui, Hawaii (The Big Island) and Kauai. Outrigger’s vice president sales and marketing Asia Pacific Mark Simons says the hotel group hopes to have up to 2000 Australian agents in the program by the end of the year. “Outrigger Hotels and Resorts believes in rewarding travel agents for their hard work and business as we know that travel agents are a vital piece of our overall success,” he says. “Travel agents generate a massive amount of business for Outrigger through direct bookings and wholesalers.” Whether it is diving with turtles, canoeing, renewing wedding vows or surfing, Kelley says Hawaii offers a cultural experience that travellers are keen to experience. After Oahu, Maui remains the second most popular destination in Hawaii, followed by Hawaii Island and Kauai, which HTO’s Galea says is the most “under-discovered” of the islands. “Only 10% of Kauai is developed, and the interior is untouched natural beauty. You can go mountain tubing on former irrigation channels, zip lining, horse riding, bike riding,
Most inter-island travel is by plane but there are also ferry services between some islands. Car rental is the best way to discover Lana’i and the Big Island, with a 4WD vehicle recommended for travellers venturing off the beaten track. Public transport is available but can be time consuming and difficult to get around. Hertz, Thrifty, Avis and Budget Car Rental all have offices on the ground in Hawaii.
and do movie tours. It’s really great for teenagers.” Just a 25 minute flight from Honolulu, Kauai also has three rivers, long stretches of white-sand beaches, and a long list of adventures on offer. Galea says the family guide has information on what specific hotels offer, including Keiki Clubs (kids clubs), children’s menus at restaurants and other family friendly features. Australians nominate “rest and relaxation” as the top reason for travelling to Hawaii, with 43% of travellers being couples, and 20% extended families or friends travelling for special occasions or family reunions. The second most cited reason for a Hawaii holiday is shopping, followed by food and wine. Other top activities include sightseeing, historical places, surfing and swimming, and beaches, Galea says. The Hawaii Family Guide is a valuable resource which is now available online. n gohawaii.com/au/statewide/family-guide travelBulletin MAY 2015
57
hawaii
HTO training heads online
HAWAII Tourism Oceania has created a dedicated YouTube channel for its new series of destination training videos. Following the successful release of its first video focusing on Oahu, the recently released second module showcases Hawaii Island’s highlights. Designed to help travel agents learn more
about the islands of Hawaii, the 14-minute webinars are presented by Deanna Isbister from Big Island Visitors Bureau. Hawaii Tourism Oceania country manager Australia Ashlee Galea says the videos provide agents with an overview of the islands without having to leave their desks. More training videos will be released throughout the year to complement the existing line up of webinars. Hawaii Island is the youngest and largest island in the Hawaiian chain and is remarkable for more than just its size. Among the highlights are Kilauea, one of the most active volcanoes in the world, Puuhonua o Honaunau, black sand beaches, snorkelling with manta rays, horseback riding in Waimea, and sailing along the Kona Coast.
Intrepid Hawaii foray a hit THE launch of Intrepid Travel’s first Hawaii tours last year were a hit with adventure travellers, with the small group travel company adding two new departures this year on the back of popular demand. Intrepid Travel’s 10-day Hawaiian Highlights trip is a small group multi-day tour that takes travellers beyond the most popular beaches, shopping and tourist sites to explore the less touristy side of the islands. Local leaders take travellers to spot humpback whales in Maui, surf at lesserknown beaches, explore the world’s largest and most active volcanoes, and kayak or zip line on Kaua’i, the least developed island in the Hawaiian archipelago. While Hawaii is often considered a romantic destination, Intrepid’s first Hawaiian tour has been particularly popular with solo female travellers, with more than 60% of bookings in 2014 for single travellers. Women outnumbered men by two to one. “Hawaii isn’t just a fly and flop destination or a romantic getaway – it is a fascinating place for adventurous travellers who want to
see more than a deck chair or shopping mall in Honolulu,” says Intrepid Travel managing director James Thornton. “There are plenty of moments to bask in the sun, but the national parks, wildlife and volcanoes create those lasting memories.” Intrepid expects to see further growth in numbers from Australia in 2015 as a result of the Qantas and WestJet alliance which now enables travellers to fly to Vancouver via Honolulu. The Hawaiian Highlights trip is priced from $3220 per person and has eight more departures in 2015.
makeover for ncl’s hawaiian pride NORWEGIAN Cruise Line’s Pride of America is sporting a number of major enhancements including 24 new luxury suites and staterooms, ship-wide wireless internet connectivity, and flat screen televisions. The cruise line’s signature restaurant Moderno Churrascaria is also on deck, with 19 dining options now available. To celebrate the new additions, Norwegian Cruise Line is offering reduced fares on most 2015 departures into early 2016, with prices leading in from $1460pp. The vessel covers all four main Hawaiian islands with overnight stays in Maui and Kauai.
58
travelBulletin MAY 2015
Hilton Hawaiian Village Waikiki Hilton Hawaiian Village Waikiki Beach Resort has completed a five-month, US$21 million renovation of its 17-storey Diamond Head Tower. The top-to-bottom transformation includes the refurbishment of all 380 guest rooms and suites, corridors and the hotel lobby. Hilton’s Diamond Head Tower offers sweeping views of the Pacific Ocean and resort views overlooking the village’s 22 acres of tropical gardens. All guest rooms, including eight suites and 48 junior suites, have been redecorated to provide a luxury beachhouse feel, incorporating indigenousinspired textiles with a contemporary but distinctly Hawaiian theme. Amenities include a Juliet balcony, a bar area with fridge and coffee maker, a desk, flat-screen TV with premium cable channels and a PlayStation 3 and in-room safe. The Diamond Head tower is one of five accommodation towers in the complex, with 2860 rooms. Hilton Hawaiian Village fronts the widest stretch of white sand on Waikiki Beach and has five swimming pools including an exclusive one for guests of the Ali’i Tower. A full range of water sports are also on offer including surfing, snorkeling, stand up paddleboarding, catamaran cruises and submarine rides. The resort also has 18 restaurants and lounges, free daily cultural activities, the Waikiki Starlight Luau and more than 90 shops and services. Also on offer is Camp Penguin; a children’s program for kids aged five to 12 years.
Kaua‘i is an island of immense natural beauty. Hawai‘i’s Island of Discovery is green, tropical and wild with rainforest covered cliffs, cascading waterfalls and lush vegetation. Choose Kaua‘i if you: • are attracted to nature • seek to escape and don’t like crowds • want to relax as your number one priority O‘ahu is home to the State’s capital city Honolulu and world-famous Waikiki Beach. Also known as the Heart of Hawai‘i, O‘ahu offers visitors town and country experiences. Choose O‘ahu if you: • are social and active • are attracted to urban experiences • want foreign, yet familiar culture
KAUA‘I O‘AHU
MOLOKA‘I
LANA‘I
MAUI
Maui has quite a small population, making it a great place to escape the crowds. Year after year Maui, the Valley Isle, is voted the best island in the world by travellers and magazines alike. Choose Maui if you: • like to have options • enjoy diversity of half-day adventures • are into soft adventure
HAWAI‘I ISLAND
Hawai‘i, the Island of Adventure, is an unrivalled expression of the power of nature. Here you can discover all but two of the world’s climatic zones and Hawai‘i’s only active volcano. Choose Hawai‘i Island if you: • are an active person and enjoy adventure • have a curious personality • seek unique experiences
CHOOSE YOUR OWN HAWAIIAN ADVENTURE Hawai‘i’s six islands offer an incredible range of unforgettable holiday experiences. We invite you to join the Hawai‘i Travel Trade Resource Centre to learn everything you need to know about the Hawaiian Islands. Complete our online training modules, order travel guides and maps, access travel agent rates and so much more.
hawaiitourism.com.au/traveltrade info@hawaiitourism.com.au facebook.com/alohadownunder
hawaii
Q&A
Hawaii is a hugely popular destination for Australians. Everyone from honeymooners to families and those seeking soft adventure will find something to suit on the Aloha islands. Student Flights Wollongong team leader Ashley Jurd shares her top selling tips.
What do Australians want to experience most when they go to Hawaii? Everything! Most Australians are drawn to Hawaii because it offers a balanced holiday. Travellers have the option to shop until they drop, experience the Hawaiian culture and activities, or just kick back and relax. Apart from Oahu, which island is the most popular with your clients? Maui is the most popular destination behind Oahu. However, The Big Island of Hawaii is fast becoming an attraction to our clientele as it offers so much diversity.
What are your top “don’t miss” recommendations? This is a tough one, but I would suggest sending your clients to the north shore on Oahu for at least two nights. The cocktails are fantastic! Turtle Bay is simply amazing and everyone thanks me after sending them there. Another recommendation would be a Haleakala sunrise excursion while on Maui. I’m not a morning person but it’s worth the early morning rise. Also, advise your clients to take a spare suitcase because the shopping is crazy.
What’s the top selling point for Australian travellers? I would say a combination of amazing weather year round, and value for money. Is price a factor for Australians looking at Hawaii as a holiday destination? Yes, price is a factor for most people. However, the value you get from a destination such as Hawaii outweighs the cost. You can experience so much in one destination. What do you recommend for first time visitors to Hawaii? Definitely stay on at least two islands, if not more depending on the time you have. You will fully understand why people fall in love with Hawaii and you will appreciate just how much there is to see and do.
NORWEGIAN’S SEE MORE OF HAWAI’I Seven days, four islands and two overnight stays Cruise from
$1460 pp
For bookings & further information contact your preferreed wholesaler or visit www.norwegiancruiseline.com.au * Conditions apply. Price is inclusive of cruise fare, all relative taxes & surcharges/gratuities and is in AUD. Pricing is in AUD and subject to change without notice due to currency fluctuations. Pricing is correct at time of print 20 April 2015. Fares & pricing may be withdrawn at any time. Pricing is based on 28 Nov 15 departure in IX category. Every effort is made to ensure accuracy of advertisement, however Norwegian Cruise Line cannot be held responsible for printing or typographical errors arising from unforeseen circumstances.
Hotels & Apartments
Concerns linger over sluggish hotel supply
By Louise Wallace
H
OTEL supply has long been a prickly topic in Australia. It made headlines back in the early 1990s when investors were throwing cash at new developments, and again in the 2000s when Sydney was swamped with new properties ahead of the Olympic Games. And as Australian visitor arrivals continue to trump previous records while new hotel developments make modest gains, accommodation shortfalls are again making headlines. Industry groups such as the Tourism and Transport Forum and Australian Tourism Export Council have been waxing lyrical about the effects of inadequate room supply for years, warning that it will tarnish Australia’s appeal among global markets and see room rates reach catastrophic levels. Their concerns are not unfounded with the latest Hotel Price Index showing that room rates are on the rise – now averaging around $177 a night Australia wide. According to the latest Deloitte Tourism and Hotel Market Outlook report, occupancies posted a new high of 68% nationwide in 2014, marking a 2.2% jump on the previous year. Sydney took the podium with an average 87% occupancy rate last year followed closely by 86% in Melbourne, while Hobart and Adelaide both posted 4% gains on occupancies over the past 12 months. With 75 new hotel developments in the pipeline over the next three years, supply is making headway. But Deloitte forecasts that national demand for hotel rooms will grow at double the pace of supply to December 2017, pushing nationwide occupancies to above 70% in the next few years. There is no debate as to whether more supply is needed and experts are unanimous
in their agreement that demand is outpacing supply. But just how much is a point of discussion. The Accommodation Association of Australia claims that 500 rooms per year until 2020 will be sufficient to meet demand without tipping the boom and bust effect of the 2000s, while estimates of up to 1800 rooms per year have also made the rounds. Trade and Investment Minister Andrew Robb also told the Destination Australia conference in March that Australia needs 80 more five- and six-star hotels and “iconic resorts” to cater for an expected 10% annual increase in international tourists over the next five years. But Accor Pacific chief operating officer Simon McGrath says the numbers debate plays second fiddle to the timing of new hotel developments. “There have been many roving figures about the amount of new stock required, and while the need for a big number of new hotel rooms is clear, we need a slow drip feed of stock rather than a balloon all at once,” he told travelBulletin. Mantra executive director marketing and distribution Kent Davidson agrees that sustained investment is the only way to avoid oversupply which sent hoteliers reeling in the 90s. But it’s an issue that he says demands more information from higher up the chain. “Supply is very tight and hotels that are coming online are really only meeting the growth in demand – they are not growing capacity,” he told travelBulletin. “In order to make headway we really need more government sanctioned opportunities and more incentives in place surrounding the development of mixed use facilities.” Market economics are improving on post GFC levels and are now leaning in the favour of investors as visitor numbers grow. As Davidson put it: “There’s money to be made as demand consistently outstrips supply.” And while he
says there’s a “long way to go” until supply lines up with demand in CBD locations where occupancies often peak above 90%, the same goes for urban and regional centres. Quest Apartments chairman Paul Contantinou says urban and regional areas are finding their way onto the radar – not only for corporate travellers who are increasingly doing business outside of the CBD, but also for investors.
Supply is very tight and ‘hotels that are coming online are really only meeting the growth in demand - they are not growing capacity
’
“Locational requirements for corporate travellers have changed as they have the capacity to work remotely and away from the CBD, and that’s where the [hotel] demand is,” he told travelBulletin. The same goes for many regional towns which are “underserviced” by quality hotels despite significant population growth, Contantinou added. While most overseas investors are throwing money behind top end hotels in major cities, Contantinou expects more 3.5 and 4 star properties in outer CBD areas will enter the pipeline in the coming years as market conditions ripen. But with the Australia market often suffering a “lag” as investors wait for someone else to dip their toes into the market, he said it may still be some time until more investors follow suit. “There is a major untapped segment for the four-star traveller. More properties will emerge but it may be some time until the full potential of regional and urban developments is realised,” he concluded. travelBulletin MAY 2015
61
Hotels & Apartments
MANTRA LOOKS TO DOMINATE DOMESTIC MARKET MANTRA Hotels has been fattening up its domestic portfolio in recent years, but the Australian hotel group has made its plans clear – more expansion is on the cards. Mantra had a busy year in 2014, adding a whopping 12 hotels to its portfolio in Australia and New Zealand. The group also made its mark early in 2015, swallowing Outrigger’s entire Australia portfolio back in March in a $29.5 million deal that will see Mantra take on Outrigger’s four beachside properties in Queensland next month. It’s not the first time Mantra and Outrigger have signed on the dotted line, with Outrigger selling off its Australian assets to Mantra’s predecessor Stella Hospitality for $91 million back in 2006. And much like last time, the deal was accompanied by an elaborate PR campaign to stress that Outrigger remains “committed” to the Australia market despite pulling the pin on its entire portfolio. During a recent visit to Sydney in March, Outrigger vice president corporate communications Bitsy Kelley told travelBulletin that the move to cull its Australian properties was simply part of a “realignment” of its Australian portfolio to focus on “premier beachfront locations”. “We want to become the ultimate beachfront brand of the world, and in order to do that we saw the need to realign our Australian portfolio with properties in iconic destinations,” she said. “Our portfolio no longer aligned with that strategy.” 62
travelBulletin MAY 2015
But Kelley stressed that Australia was on Outrigger’s radar, insisting that the group would “very seriously” look at other opportunities on Australia’s east coast. She was unable to pin down a timeline for when Outrigger would step back into Australia, instead claiming that the group remained “optimistic” that opportunities would arise in the near future.
We jumped at the ‘opportunity to buy
’
Outrigger’s portfolio
Mantra, meanwhile, wasted no time stepping in Outrigger’s place as it forges ahead with an aggressive expansion strategy to build its domestic portfolio. The deal, which brings Mantra’s portfolio to over 120 properties across Australia, New Zealand and Indonesia, was accompanied by a $50 million capital raising to fund the acquisition and forge ahead with new “pipeline opportunities”. But as Mantra executive director marketing and distribution Kent Davidson told travelBulletin, the transition process to move the properties into the “Mantra machine” is not expected to have much of an effect on the balance sheet. Instead, he said, the capital raising is part of a broader strategy to add more hotels to its base inventory.
“The problem with our business at the moment is that we don’t have enough inventory and there is such strong demand. To continue to grow we need more properties and clearly that is what we’re doing,” he said. With limited hotel supply posing challenges for the group’s expansion plans, Davidson said Mantra was keen to take up opportunities as and when they arise. He stopped short of singling out a target figure but said the hotel group was looking to acquire “as many domestic hotels as possible”. “We jumped at the opportunity to buy Outrigger’s portfolio and immediately put an offer in place,” he said. With the four Outrigger properties expected to be fully operational under the Mantra brand by the end of the financial year, Davidson said the Outrigger portfolio was a “step in the right direction” as the hotel group looks to step up its domestic presence. And with three other Mantra hotels opening in the same period including two in Hobart and a BreakFree hotel in Christchurch, the plan is starting to take shape. Davidson confirmed that the Mantra Group had a “series” of deals on the boil with many other acquisitions currently in the pipeline. He also stressed that major cities were central to the plan, with particular focus on CBD properties. “Our CBD properties operate at very high occupancies and we want to continue to grow with more inventory if we can get our hands on it,” he said. “Australia is very important for us and while we would like to move overseas when the time comes, we are so frantically busy in Australia at the moment that we are going to focus on domestic growth for now.”
Hotels & Apartments
RAFFLES UPS GLOBAL PORTFOLIO RAFFLES Hotels & Resorts has again beefed up its portfolio in Asia with the addition of another property in Jakarta. Located above the commercial hub of Kuningan, Raffles Jakarta is linked to the new Ciputra Artpreneur Centre and located close to the city’s business district. The 173-room property features floor to ceiling windows, a selection of on-site bars and restaurants, and a 2500 square metre ballroom. The addition brings Raffles’ portfolio to 12 hotels and resorts in Singapore, China, Cambodia, the Philippines, Dubai and Paris. The group also has plans to open further properties in South Arabia, Egypt, and Poland in the near future. Raffles Jakarta is offering savings of 25% for bookings made before 31 June, 2015.
IHG revamps Rewards Club program IHG will revamp its loyalty program from July with a new elite tier and amended qualification requirements for its existing Gold and Platinum levels. Open to members with 75,000 qualifying points or 75 qualifying nights over the course of the year, the elite program aims to build a more “personalised” relationship with loyal members. Members eligible for the yet-to-benamed program will earn double points on all qualifying stays – double that of the current platinum bonus of 50%. They can also choose between 25,000 bonus points when they qualify or nominate a friend or family member for a free upgrade to platinum status. Gold membership will also be easier to claim with just 10,000 qualifying points or 10 qualifying nights required. On the flip side, the re-jigged program will also see all points expire if there’s no redemption within 12 months.
Ascott brings AMAP program to Australia THE Ascott Limited has rolled out its Ascott Management Associates Program (AMAP) in Australia as the group continues to ramp up its focus on learning programs for recent graduates. William Angliss Institute graduate Kosta Atsiaris has been selected as the first candidate in Australia, with the AMAP program to complement his Bachelor of Tourism and Hospitality Management degree, completed back in 2014. The 18-month AMAP program, which is tailored for recent graduates, provides
candidates with on-the-job training in hospitality management, business management and all areas of operations. Atsiaris will receive training in The Ascott’s Melbourne serviced apartments in addition to the group’s management arm including finance, HR, reservations, marketing and sales. He will also have the opportunity to work internationally for three months of the program. Only recent graduates are eligible for the AMAP program, with the Bachelor of Tourism and Hospitality Management at
WIN
Located in Canberra’s vibrant New Acton arts and dining precinct, Peppers Gallery Hotel offers a sophisticated boutique experience with uniquely designed spacious apartments and an awardwinning restaurant, Bicicletta, serving authentic Italian food. The contemporary style of Peppers perfectly complements Canberra’s resurgence as a tourism hot spot and offers an ideal location close to the capital’s iconic landmarks. t
Bicicletta restauran
William Angliss Institute highly regarded for its strong focus on management including hotel and resort operations and event management.
Tell us in 25 words or less why you want to win a two night stay at Peppers Gallery & a two course meal for two at Bicicletta.
Brought to you by Mantra Group
&
Enter at www.mghotels.com.au/ travelgallery/
Hotels & Apartments
Singapore pipeline flows SINGAPORE is set to welcome a spate of new hotel offerings this year as investors pour money into new developments and tourism continues apace. Singapore’s tourism industry has seen continued growth in recent years, topping 15 million visitor arrivals in 2014. And with visitor numbers expected to continue on the same trajectory, Singapore-based investment firm UOB-Kay Hian Holdings expects that hotel supply will grow at around 5.2% over the next five years to match annual demand that is set to experience the same percentage growth. Leading the charge is The Patina Capitol Singapore which will open its doors later this year. Set to be Patina Hotels’ flagship hotel, the 157-room six-star property forms part of a $750 million redevelopment project of the old Capitol movie theatre, located in the heart of the city. Also slated to open in the coming months
Ascott International half page
is the Genting Singapore which will be the first hotel to open in the city’s Jurong Lake District in the west of the island. Located within easy reach of public transport, the 550-room hotel will be situated close to the main business districts with features including sky terraces and rooftop gardens. The area has also been earmarked by Singapore’s Urban Redevelopment Authority as one of the most promising up and coming areas for its commercial, business and leisure facilities. Closer to the centre of Singapore, Hotel Farrer Park is also set to open its doors in the coming months. Located above Farrer Park MRT, the property will be connected via an underground walkway to Singapore’s first eco shopping centre and located within walking distance from the northern end of Little India. Sofitel is also adding its touch to Singapore with the Sentosa Resort & Spa. Set to open later this year following an extensive refurbishment, the property marks Sofitel’s second hotel in Singapore. Located on the island of Sentosa, the property is billed as having a hint of French-style luxury with 215 guest rooms and a terrace with sea views and landscaped gardens. Free wireless internet will also be available across the entire property.
Cheval Gloucester Park
Cheval Three Quays
Cheval Knightsbridge
Cheval Harrington Court
Cheval Thorney Court
Cheval Phoenix House
Cheval Three Quays
Cheval Harrington Court
Cheval Gloucester Park
With over 30 years’ experience in Serviced Apartments, Cheval Residences offers a portfolio of over 500 luxury apartments in Central London. Kensington, The City, Knightsbridge, Chelsea provide the perfect environment in which to enjoy your time in this great capital. For more information contact the Melbourne Sales Office: The Hotel Connection, Toorak Place, Level 2, 521 Toorak Road, Toorak, Melbourne VIC 3142, Australia E: contact@thehotelconnection.com.au www.thehotelconnection.com.au www.chevalresidences.com GDS Chain Code: WV
TRAVEL INSURANCE
66
travelBulletin MAY 2015
TRAVEL INSURANCE
Travel and Insurance go hand IN hand By Kris Madden
B
eing caught up in a natural disaster, civil unrest or industrial action are all too common occurrences for today’s traveller. With the Australian government indicating that it will not meet expenses if travellers are uninsured, and that people will need to take more responsibility for their welfare when travelling overseas, it seems that selling travel and travel insurance go hand in hand. But some travel agents are reluctant to ask their clients about this essential part of their travel plans. For clients, insurance is something often seen as a necessary evil, and often a cost they have not budgeted for. “Many agents make the mistake of expecting a knock back so they either don’t quote for insurance at all, or downplay it with the underselling phrase ‘are you okay for travel insurance?’,” says Allianz global assistance spokesperson Santina Notte. “The best results come when the agent provides the quote up front. It’s the confidence and expectation that ‘of course my client will need travel insurance’. Don’t assume your customer understands the insurance minefield – not all products are equal,” she says. While agents are not able to recommend an insurance policy to their customers, they can ensure their customers ask the right questions in determining their travel insurance needs. For example, if your client was taking a skiing holiday in Austria or Canada, some policies have snow cover included, while others sell it as an additional benefit. It should also be noted that insurance is more expensive if clients are travelling to countries such as the US and Canada, as the medical costs in these countries are among the highest in the world.
“Insurance is all about risk, and premiums are tied to the level of that risk,” says Notte. “Medical treatment costs can mount rapidly, even for relatively minor treatment. A serious medical condition can result in a claim costing more than $1 million.” QBE national manager sales, distribution and strategy of travel Mark DeLuca says his company believes it’s all about ensuring agents have a really strong, in-depth knowledge of the features and benefits of various products so they can better explain them to their customers. “To help agents achieve this, we make sure our relationship is a continuous one and we schedule in visits, both formal and informal, to keep them up-to-date on products and any feedback we may have received from travellers,” DeLuca says. “Travel agents are experts in understanding the common issues experienced by travellers and providing information on the destinations their customers intend to visit. This knowledge, combined with a strong understanding of travel insurance, means agents are in a unique position to explain coverage differences and how a product would protect each individual customer in various scenarios specific to their trip or circumstances.” DeLuca says agents can create value for their customers by highlighting relevant products to ensure the customer gets the cover they need. As agents are not legally permitted to recommend products, offering factual product advice is usually the best course of action. It’s also important that agents have a strong understanding of the type of activities their clients intend to undertake, so they can highlight product benefits that are relevant to the customer. Recent independent research by SureSave [1], involving more than 1000 Australianbased travellers, reveals that travel agents’ advice is valued more than ever.
SureSave general manager Michael Callaghan says it’s clear that travellers are seeking guidance from the experts. “We’re seeing a year on year increase in the perceived value of agents’ advice. In the last two years alone, the number of travellers who view agents as a trusted source of safety and travel advice has jumped dramatically to 73%, which is a 16% increase.” “With an increasing number of security and safety threats internationally, a growing number of us are relying on the expertise of agents to provide assistance when planning our next holiday,” he says. Travel agents can typically earn anything between 30-50% commission on travel insurance sales, so those who are not suggesting this to their clients may be missing out on a valuable opportunity to provide additional service and generate extra revenue. “Commissions on sales of travel insurance can be a good source of income, not to mention a great career opportunity. Customers of travel agents generally place high value on a travel specialist utilising their expertise to help them make their travel plans. Travel agents should be able to help consumers understand the insurance product on offer because they are the experts in the industry. They offer a face-to-face service meaning that consumers have someone they can ask questions or bounce ideas around with,” Allianz’s Notte concludes. In a world where online transactions are increasing, it’s good to know that people still take comfort in knowing they are dealing with someone who is genuinely interested in understanding their requirements and helping them align these with appropriate insurance. This is just another of the value propositions a travel agent can bring to their customers. [1] SureSave’s 2015 Travel Insurance Index
travelBulletin MAY 2015
67
TRAVEL INSURANCE
WHEN THINGS GO WRONG Nobody wants to think about the things that may go wrong on their trip, but unexpected events can (and do) happen. If your client is still tossing up whether they need travel insurance, these real life examples from the Department of Foreign Affairs’ Smartraveller website should leave them in no doubt.
The right level of cover Santina Notte of Allianz Global Assistance says agents who explain the features and benefits of insurance products are more likely to have happy customers, however it’s important to ask the right questions to ensure clients have adequate cover. “Buying an inadequate level of cover can leave the traveller out of pocket in certain situations, and the last thing travellers want is to incur a financial burden on their holiday. In some situations, access to appropriate medical treatment may not be available and this could also have a long-term effect on recovery. Budget products typically do not provide as broad a cover, nor as high a benefit level as comprehensive products,” says Notte.
Did you know? Travel agents are still the leading sellers of travel insurance. In 2015, research conducted by SureSave revealed that 31% of Australian travellers purchased travel insurance with a travel agent, versus 23% who purchased online with an insurance company. In addition, 73% of travellers view agents as a ‘trusted source of safety and travel advice’. QBE national manager sales, distribution and strategy of travel Mark DeLuca says the entry of online travel insurance providers along with the expansion of insurance into nontraditional distribution channels has increased competition and put pressure on pricing and commission levels. But he says travel agents can add enormous value when helping customers to book a holiday, organise travel insurance, or to make a claim. They are also invaluable in ensuring customers receive the right insurance for their needs, he said. Meanwhile, SureSave general manager 68
travelBulletin MAY 2015
Michael Callaghan says travel agents play a crucial role in informing and educating consumers on insurance options, so it’s vital that they remain up-to-date on insurance products and the associated benefits. “The product choice and the level of cover is completely dependent on individual factors, therefore each traveller has to truly understand the product they are purchasing and ensure it is right for their individual needs. The traveller decision-making process is complex and it is important that agents consider the entire purchase cycle as well as external factors that may influence a traveller’s decision. As a general rule of thumb, it’s better to be safe (over-insured) than sorry (under-insured),” Callaghan says. “The most important factor when purchasing insurance is that the traveller understands exactly what they are covered for and that includes checking for specific activities, such as skiing, motor bike riding and hot air ballooning, etc. “It’s also useful for travel agents to be aware of additional product benefits that may act as a value-add for travellers when it comes to travel insurance. “When it comes to purchasing travel insurance, it’s the additional service and support provided by agents that truly sets them apart. It’s this and peace of mind that keeps travellers booking with agents.”
Did you know? The Financial Ombudsman Service reports that in the 2012-13 financial year, more than 200,000 travel insurance claims were paid, while less than one 10th of that – about 20,000 claims – were declined. Of the claims that were denied, many boiled down to a misunderstanding of the policy by the person who bought it.
1. Expect the unexpected Claire* fell down some stairs while visiting historic sites in Spain, crushing her skull. She was unconscious for four days. Thankfully, Claire’s travel buddies quickly notified her insurance company who was able to help immediately. They paid for her mother to fly to Spain for support as she recovered, and met all of the costs associated with her medical treatment, her recovery in Spain, and her medical evacuation to Australia, saving her and her family more than $140,000. 2. Drinking voids claims Lee* was attending a wedding in Thailand when he fell down some stairs at the hotel, breaking his leg and several ribs. Because he’d been celebrating with a few alcoholic drinks, his insurer refused his claim for medical expenses. The incident cost Lee $10,300 in medical expenses which had to be paid in full before he could leave hospital. 3. Declare pre-existing conditions Maureen* was on a cruise in the Pacific, but was evacuated from the ship to a hospital in Noumea after suffering complications with her medication. The insurer refused to cover the $60,000 in medical bills because Maureen was hospitalised for a pre-existing medical condition. Maureen now has to pay the hospital in Noumea in instalments. 4. Ensure all your activities are covered Alex* was taking part in the annual Running of the Bulls event in Spain, but was gored in the back after falling under a bull and was not allowed to fly home for a further four months. Alex’s hospital bill alone came to $32,000. Alex had travel insurance, but hadn’t told his insurer he would be taking part in the event, so none of his medical costs were covered. n www.smartraveller.gov.au *Names have been changed for privacy
brochures
Four itineraries ranging from 5-10 days are outlined in Travelmarvel’s new 2015/16 Tasmania brochure, with culinary experiences a strong focus across all tours. All Insider Experiences feature food-inspired themes with highlights including meals in iconic restaurants, a Gordon River lunch cruise and a visit to the Bridestowe Lavender Farm. The flagship 10-day Grand Tasman tour covers Hobart, Strahan, Port Arthur and Cradle Mountain from $3095.
New hotels, regions and multi-day tours around Bangkok have been added to Creative Holidays’ 2015/16 Thailand brochure, including 30 new properties. New regions include Trang and Sangkhlaburi Lake, while a full page on experiences at Elephant Hills in Khao Sok has also been added to the line up. The new Trang Island Hopping itinerary covers the region’s temples, beaches and villages from $1292 per person including five nights of accommodation, transfers, some meals and entrance fees.
Bunnik Tours has added a number of new itineraries to its latest Egypt brochure including the 18-day Egyptian Oases and Lake Nasser Cruise which visits Bahariya, Farafra and Kharga. Guests also take in the sights of Luxor and Aswan, and board a three-night luxury cruise of Lake Nasser from $7990 per person. Other options include the 12-day Highlights of Egypt from $5890 and the 23-day Best of Egypt and Turkey itinerary from $8590 including return flights.
Evergreen has reinstated its escorted land tours and introduced a 25-day cruise from Sydney to Auckland. Outlined in the 2015/16 New Zealand brochure, the new itinerary combines a 15-day cruise and a 10-day tour of the North and South Islands, with earlybird savings of $500 now available. The 18-day Grand NZ tour, the 10-day Scenic South Island tour and the nine-day North Island Unveiled itinerary are also back this year.
Broome & the Kimberley Holidays has added new self-drive itineraries and package tours to its 2015/16 Broome, The Kimberley & Northern Territory brochure ranging from two days to two weeks. Outlined in the 92-page brochure is the three-night Broome Racing package starting from $413 per person, the new Kimberley Icons itinerary which covers the Bungle Bungles and Broome, and a number of Kimberley cruises. Also new this year is the seven-night Darwin & Kakadu Self Drive Adventure.
Rail Plus has released its latest Your World on Track brochure, complete with a new Scottish Highlands Pass, more destination information for Italy and France, and a new day trip in Switzerland. The 40-page program features a full day tour to Mt Titlis which includes a cable car ride and travel on the Rotair Titlis Gondola. Other new products include the Swiss Half Fare Card, the new Britrail Scottish Highlands Pass, and the Eurail Select Pass which now features new pricing tiers.
Back-Roads Touring has rolled out its UK and Europe mega brochure including new destinations, 55 tours and 15 new itineraries. Waterbased touring experiences are new this year, along with year-round itineraries allowing clients to travel in the off season. The new seven-day ‘Burgundy: A Cruise along Le Canal De Bourgogne’ takes in France’s popular wine regions and includes travel to the Palace of Fontainebleau from $3745 per person.
Switzerland Tourism has released a Swiss Summer brochure detailing the new 1600km self-drive route, the Grand Tour of Switzerland. Covering five alpine passes, 11 UNESCO World Heritage Sites and 22 lakes, the journey covers some of Switzerland’s most iconic sites and attractions. Featuring a detailed travel journal, the program includes maps, travel suggestions, driving distances and accommodation options.
travelBulletin MAY 2015
69
the last word
> win A GUIDEBOOK!
APP HAPPY Smart devices have become a part of essential luggage for overseas travellers, but all that data usage can come at a hefty price. That’s where the Ulmon City Maps app comes into the picture. Available in a free or paid version, the app downloads maps and stores them on smart devices so users can access them without a Wi-Fi connection. It also pinpoints locations so users can make their way around without getting lost. But that’s not all – the app includes information on city attractions and points of interests, and allows users to search for locations without using an internet connection. Tips and recommendations, info on the most popular attractions, restaurants and shops – it’s all there. Users can also save points of interest to their smartphone (like their hotel) so they don’t have to search the same address time and again. Massive holiday phone bills are soon to be a thing of the past!
Funnies Flashback Where were you on 14 July 1999? We took a trip down memory lane and uncovered this gem of a story from that day in the Travel Daily Window Seat archives: WORLD media are giving huge exposure to the stateless Iranian who’s been living on a bench at Paris Charles de Gaulle Airport for the past 11 years because he didn’t have identity papers. Now his papers have turned up and Alfred Merham will be able to move on. But will he? An airport restaurant waitress is quoted today as saying: “He’ll never leave. He’s too well off. “Stewardesses give him their luncheon vouchers, the cleaners open the showers for him at dawn, the tourists buy him food and the police take great care of him. “What more can a man who is alone in the world hope for?” 70
travelBulletin MAY 2015
Where in the World? Thermal pools are easy on the eye, but do you have any idea where this one is? If you have any clue, send your answer to comps@travelbulletin.com.au and go in the draw to WIN your very own travel guidebook, courtesy of Marco Polo Travel Publishing. Congratulations to Andrea Inturrisi from HRG Australia who takes home a double movie ticket for correctly answering Sultan Qaboos Grand Mosque in last month’s Where in the World competition.
MAZE OF MADNESS Travel agents know better than anyone how important it is to make good connections for their clients. But can you connect the green square up to the red dot?
Our all-inclusive Europe river cruising is our most sought-after experience. When we say all-inclusive, that’s what we mean. We’ve found our guests appreciate the peace of mind of knowing all they have to plan for is their personal spending money. So both on board and onshore, we’ve got everything covered, including tipping. Our Scenic Enrich excursions are our exclusive events including private concerts and limited access to venues that we offer to our guests. These are outstanding once-in-a-lifetime experiences offering captivating moments that for many of our guests are the highlights of their trip. Scenic Freechoice is a comprehensive selection of activities and attractions in the key cities and regions we visit. As with Tailormade and Enrich, these are included in our overall package and give our guests even more options to customise their trip.
Scenic Tailormade is our individual and exclusive GPS guided tour selection. This is a unique program giving our guests the chance to personalise their tour, seeing only what appeals to them.
DISCOV ER MOR E WON DERS AT
SCENICWONDERS.COM.AU