JULY 2020
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CONTENTS
COVER STORY 12 Pivoting to the new world Coronavirus is forcing the industry to change and some are getting on the front foot and meeting the challenges of the new world head on with new products and new ways of doing business.
$ $
MONTHLY
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02 State of the industry 08 Issues and trends 19 Cruise 23 Last word
12
COLUMNS 02 From the publisher 06 Steve Jones 08 AFTA View 11 CATO View
19
21 CLIA View
10 This month’s contributors Steve Jones, Joel Katz, Brett Jardine
EDITORIAL Editor in Chief and Publisher – Bruce Piper Editorial and Production Manager – Sarah Beyer Ph: 1300 799 220 or 02 8007 6760 sarah.beyer@traveldaily.com.au
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This publication is independently audited under the AMAA's CAB Total Distribution Audit.
1 Apr Reporting Period: 16 Apr2018 2016to– 31 16 Mar Sep 2019 2016 - Publisher Statement
Editorial team – Myles Stedman, Jasmine Hanna, Adam Bishop
ADVERTISING National Sales Manager Lisa Maroun Ph: 0405 132 575 or 02 8007 6760 lisa.maroun@travelbulletin.com.au
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Publishing Director – Jenny Piper
travelBulletin is part of the Business Publishing Group family of publications
travelBulletin JULY 2020
1
STATE OF THE INDUSTRY
From the publisher Bruce Piper
IN BRIEF
2
IT’S now July, which means we have all managed to survive another month of this COVID-19 nightmare. And what a month it’s been. Despite our business being down more than 90% the team from Travel Daily, travelBulletin, Cruise Weekly and Business Events News have doubled down on our efforts to keep the industry informed. Every day we try to find a balance between good news and bad – and I have to say that over the last few months finding the bright spots has been pretty tricky! I’d like to pay tribute to our staff who have persevered under very difficult circumstances. The encouragement of the industry has also been key, and we aim to continue our extensive coverage for as long as we are able. Some of the feedback from travel agents through the coronacrisis has been fascinating. As the torrent of refunds and rebookings has slowed, many are now pivoting to domestic product and it is clear some of the local suppliers are not used to dealing with the trade.
Qantas rips off the bandaid HEARTS sank across the industry late last month when Qantas announced it would ground its international fleet for as long as 12 months, bringing into sharp relief the brutal impact that COVID-19 is having and dashing hopes of a recovery any time soon. Acknowledging the harsh reality of ongoing border closures across the globe, QF CEO Alan Joyce also confirmed the airline will
travelBulletin JULY 2020
One consultant told us she had contacted a Queensland hotel to make a significant booking, and been told to “check price and availability on Trivago”. There’s also been a lot of frustration at rhetoric from some state tourism organisations which have had a strong focus on encouraging direct bookings – and where they have involved the trade, have partnered with foreign OTAs rather than with local travel agents. However among all the news from AFTA last month was a snippet noting that the Federation was getting some traction from actively engaging with politicians to highlight the option of booking through an agent. It’s been also great to see some operators rapidly developing new product for the travel agency distribution channel. When the recovery comes, the first people to head out will be avid travellers – and they’re the ones that travel agents have relationships with. This crisis is an opportunity for agents to show their true worth, and the industry must grab it with both hands.
end up significantly different from before the pandemic hit, with 6,000 jobs to go on top of 15,000 staff who will continue to be stood down until demand returns. The increasing Qantas share price also made it more palatable to raise $1.9 billion in additional capital which will help position the airline for growth once things improve. But in the meantime “we need to position ourselves for several years where revenue will be much lower, and that means becoming a smaller
airline in the short term,” Joyce said. The downsizing of Qantas must be a bitter pill for him to swallow, given that some of the airline’s rivals have quickly stepped into the breach – most notably Qatar Airways which has become Australia’s largest international carrier through the pandemic, with an estimated 45% market share. However that’s definitely come at a price, with load factors at record lows – and clearly that’s a price Qantas does not want to pay.
RUDD OFF AND RACING
NEWLY appointed AFTA Chief Executive Officer Darren Rudd wasted no time at all once taking up the role on 29 June, heading out immediately to a travel agency in Sydney’s western suburbs for a meet and greet alongside the local Member of Parliament. He’s pictured catching up with George Vella from Breakway Travel in Blacktown.
Musical TTC chairs THE Travel Corporation is also set to look different once COVID-19 passes – particularly when it comes to its executive ranks. Last month the company announced that Katrina Barry, the longstanding MD of Contiki in Australia and NZ, would move across to lead the Trafalgar and Costsaver brands when she returns from maternity leave next month. She replaces Jason Wolff, who has been in the job since early 2019 but is now relocating to Brisbane to return to a role outside the travel industry. When he was appointed to Trafalgar last year, he took over from Matt Cameron-Smith who moved to lead The Travel Corporation’s AAT Kings brand, where he was further promoted in just May this year to a CEO role. However Cameron-Smith has in turn now resigned to become head of Voyages Indigenous Tourism Australia, with The Travel Corporation Chairman Dave Hoskings on
“
the hunt for a replacement at AAT Kngs and also working on new leadership for Contiki, to replace Barry. Contiki is expected to see some sort of a restructure in consultation with former Silversea MD Adam Armstrong, who has now taken up his new role as global CEO of the youth brand – but operating from Sydney rather than Geneva due to COVID-19 travel restrictions.
said the investments from Sinclair Investment Group and Tailorspace would allow the company to strengthen its balance sheet and to then “take advantage of the significant opportunities that will arise once conditions normalise”. He remains the majority shareholder in House of Travel, and said the new equity would also not change the existing partnership arrangements with the group’s NZ owneroperated retail travel agency outlets or its Australian businesses.
This new investment in House of Travel will strengthen our balance sheet and allow us to take advantage of the House of Travel significant opportunities receives investment that will NEW Zealand’s House of Travel – the parent company Bain wins Virgin bid arise once of TravelManagers, Hoot VIRGIN Australia looks one conditions Holidays and Orbit World step closer to returning to Travel – has shored up its normalise the skies, after the airline’s
”
Chris Paulsen, House of Travel Founder
financial position with a funding injection from two of the country’s wealthiest families. Founder Chris Paulsen
Voluntary Administrators finalised a Sale and Continues over page
travelBulletin JULY 2020
3
STATE OF THE INDUSTRY Continues from previous page Implementation Deed with Bain Capital. The agreement, which is still subject to approval by creditors owed more than $7 billion, initially envisions an all-domestic operation with 60-70 aircraft, with the later introduction of short-haul international. If the deal is approved Virgin 2.0 is likely to relaunch in October – and will have one eye to a potential new competitor in the form of Regional Express which has opportunistically announced plans for its own jet operations on the “golden triangle” between Australia’s east coast capital cities.
Fly365 directors solicit creditors THE former directors of the collapsed Fly365.com online travel agency believe they have an opportunity to sell the Fly365 “assets and the brand” to an unnamed
third party, and have been seeking the support of some of the hundreds of travellers who lost money when the company ceased trading earlier this year. Despite facing a formal Public Examination in the NSW Supreme Court next month – as part of investigations funded by some of the major creditors – Scott Mayne and Mustafa Filizkok have been emailing individual customers with a proxy form for a possible Scheme of Arrangement for the company. Aston Chace, the Fly365 Administrators, have urged creditors to consider the proposal carefully, noting their report, which found $5.5 million was transferred out of the company in its dying days.
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Every cent owing [by Norwegian] has been paid back, on every cruise, and they’ve protected our commission too
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Kathy Pavlidis, Travel Associates Kew
HLO drops Norwegian NORWEGIAN Cruise Line has not publicly commented on a vitriolic attack from Helloworld Travel CEO
Andrew Burnes, amid confirmation that HLO’s Seven Oceans wholesale cruise brand has been withholding payments from multiple cruise lines. Burnes wrote to travel agency members of Helloworld’s various networks in early June, noting that Norwegian is no longer a preferred supplier to the group and making “no excuses for our hardline stance” in the face of claimed insistence by NCL on payment for “cruises that we all know are not going”. Apart from Burnes’ letter, Helloworld has also declined to comment. However in contrast to the HLO experience, agents from other groups have hailed the COVID-19 response from Norwegian, including Travel Associates’ Kathy Pavlidis who noted “every cent owing has been paid back, on every cruise, and they’ve protected our commission too”.
HEADLINES 02 Jun 03 Jun 05 Jun 08 Jun 10 Jun 16 Jun 17 Jun 17 Jun 18 Jun 18 Jun
4
Virgin Aus shortlist down to two Silver Shadow and Muse to Australia New US model for Flight Centre Burnes receives AO in Birthday Honours Two Quantum-class ships in Aus 21/22 Matt Cameron-Smith to head up Voyages CLIA warns of massive job losses Intrepid Local launches Trafalgar expands domestic Borders closed until 2021: Birmingham
travelBulletin JULY 2020
19 Jun 22 Jun 23 Jun 23 Jun 25 Jun 26 Jun 26 Jun 26 Jun 29 Jun 29 Jun
Wolff departs senior TTC position Flight Centre slashes staff Bain Capital commits to honouring VA tix AFTA introduces “micro-credentials” QF grounds 100 aircraft, cuts 6,000 staff New AFTA CEO announced Bain Capital successful bidder for VA APT’s new luxury breaks REX to launch SYD-MEL-BNE operations Emerald Waterways brand to launch in Aus
DATA ROOM DOMESTIC ON TIME PERFORMANCE
ARRIVALS
March 2020
Jetstar
Qantas
Arrivals on time Departure on time Cancellations
80.6% 78.5% 26.8%
Arrivals on time Departure on time Cancellations
RETURNS
Top 10 destinations, April 2020
86.1% 87.0% 11.4%
Source
Original
New Zealand USA Germany UK Indonesia India Philippines South Africa United Arab Emirates Singapore ALL VISITOR ARRIVALS
370 180 170 140 130 80 80 60 60 60 2,200
Top 10 destinations, April 2020 Destination
% change original Apr 19/ Apr 20 -99.7 -99.7 -98.8 -99.8 -99.0 -99.7 -99.5 -98.9 -97.4 -99.8 -198.7
Original
India UK Philippines USA New Zealand Indonesia Pakistan Malaysia Thailand Peru ALL RESIDENT RETURNS
Source: ABS
2,530 1,540 1,470 900 850 760 650 490 470 400 17,000
% change original Apr 19/ Apr 20 -91.7 -95.7 -92.8 -98.9 -99.3 -99.3 -82.5 -98.2 -99.1 -77.4 -192.7
Source: ABS
ENDED DECEMBER 2017 -19
International Passengers Carried (thousands) - December 2015 to December 2017
All airlines
Arrivals on time Departure on time Cancellations
84.2% 85.4% 17.3%
-9.0%
82.8% 85.1% 22.7%
.3 %
Virgin Australia
Arrivals on time Departure on time Cancellations
- 2.
DOMESTIC AIR MARKET
7%
April 2020
INTERNATIONAL AIR MARKET SHARE
International passengers by major airline – year ended April 2020
Others, 32.2%
Jetstar, 8.8%9.1% Jetstar,
Emirates, Singapore Airlines,8.3% 8.4%
Singapore Virgin Australia,Airlines, 6.8% 8.1%
AirAsia X, 4.0% Qatar Airways, 3.3%
Dec-17
-12.5% -13.3%
City pair
16.4%
Airlines, 3.1% Malaysia Airlines, Etihad Airways, 3.2%2.8%
Air New Cathay Pacific Emirates, 6.8% Zealand, 6.6% Airways, 4.6% Virgin Air Australia, New Zealand, 6.7% 6.0% Source: BITRE Cathay Pacific Airways, 4.2%
Singapore-Melbourne Auckland-Sydney Singapore-Sydney Auckland-Melbourne Singapore-Perth Hong Kong-Sydney Singapore-Brisbane Auckland-Brisbane Los Angeles-Sydney Denpasar-Perth Top 10 City Pairs Other City Pairs ALL CITY PAIRS
Year ended
Year ended
Year ended
Passengers YE Apr 19 1,602,064 1,579,451 1,503,270 1,250,516 1,119,798 1,196,976 880,194 941,378 883,959 883,255 11,840,861 30,047,168 41,888,029
Passengers % of total % change YE Apr 20 20/19 1,415,457 3.8 -11.6 1,382,503 3.7 -12.5 1,363,242 3.7 -9.3 1,083,960 2.9 -13.3 1,001,333 2.7 -10.6 966,515 2.6 -19.3 856,560 2.3 -2.7 834,211 2.2 -11.4 804,373 2.2 -9.0 797,361 2.1 -9.7 10,505,515 28.3 -11.3 26,638,274 71.7 -11.3 37,143,789 100.0 -11.3
Source: BITRE
International Passengers by Uplift/Discharge City Pairs Australian
.4 %
Top 10 city pairs, April 2020
Qantas Airways, 17.4% Qantas Airways,
China China Southern Airlines, 2.6% Southern
-1 1
INTERNATIONAL AIR ROUTES
International Passengers by Major Airlines - Year ended December 2017
Others, 30.7%
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Nov-16
Oct-16
Sep-16
Aug-16
Jul-16
Jun-16
May-16
Apr-16
Mar-16
Feb-16
Jan-16
-1 1.6 %
3%
Source: BITRE
*Percentage points difference
-9 .
Apr 20
-9.7%
Total pax carried Revenue pax km (RPK) Avail seat kms (ASK) Load factor (%) Aircraft trips (000)
Growth Yr to Yr to Growth % Apr 19 Apr 20 % INBOUND OUTBOUND 5.15m 0.14m -97.2 60.94m 54.25m -11.0 6.06bn 0.16bn -97.4 71.05bn 63.34bn -10.9 7.54bn 0.55bn -92.6 88.38bn 79.70bn -9.8 80.3 28.1 -52.2* 80.4 79.5 -0.9* 53.4 7.9 -85.2 630.7 578.3 -8.3
-10.6%
Apr 19
travelBulletin JULY 2020
% of
% Change
5
STATE OF THE INDUSTRY Top 10 domestic city pairs, April 2020
City pair
MelbourneSydney Brisbane-Sydney BrisbaneMelbourne Gold CoastSydney AdelaideMelbourne Melbourne-Perth Gold CoastMelbourne Adelaide-Sydney Perth-Sydney Hobart-Melbourne ALL CITY PAIRS
Passengers Passengers % change YE Apr 19 YE Apr 20 (000) (000) 9,212.0
7,994.2
-13.2
4,819.1
4,253.9
-11.7
3,602.4
3,179.6
-11.7
2,681.4
2,426.3
-9.5
2,511.0
2,222.6
-11.5
2,119.6
1,880.8
-11.3
2,077.5
1,864.7
-0.6
1,885.9 1,697.0 1,653.0 60,942.2
1,639.8 1,502.4 1,467.3 54,251.0
-13.1 -11.5 -11.2 -11.0
Source: BITRE
AUSTRALIAN CONSUMER SPEND ON TRAVEL: NEWS CORP AUSTRALIA INDEX 0
-96 -96 -94 -94 -93 -91 -89 -83 -83 -78
-20
-40
-60
-80
-100
13 A pr 20 A pr 27 A pr 04 M ay 11 M ay 18 M ay 25 M ay 01 J un 08 J un 15 J un
MAIN DOMESTIC ROUTES
Source: News Corp
Steve Jones’ Say AMID the unrelenting agony of this COVID carnage, thousands of businesses have been turned upside down. It remains to be seen how many travel agencies will emerge from this government-sanctioned hibernation, with an AFTA submission to the treasury noting withdrawal of financial help could send more than 40% of retailers to the wall.
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travelBulletin JULY 2020
It seems inconceivable the government will turn a blind eye, not while our international borders remain all-but closed, apparently for the remainder of the year. That gloomy picture emerged during an address by Tourism Minister Simon Birmingham. I get that sugar-coating the current situation would be absurd given the global havoc being wreaked by this virus. But Birmingham’s negative assertion was needlessly damaging and short-sighted. Australia, in the main, has done a decent job of keeping coronavirus contained. Many European countries, including several key source markets for Australian tourism, also seem to have a grip on their respective situations. That, of course, does not mean this virus has been conquered. Regional spikes are causing concern, and there remain basket cases around the world.
AUSTRALIAN AIRPORTS
International passengers through Australia’s major international airports, April 2020 City pair
Passengers YE Apr 19 Sydney 16,826,506 Melbourne 11,308,308 Brisbane 6,192,387 Perth 4,354,219 Adelaide 1,045,096 Gold Coast 986,044 Cairns 659,217 Avalon (a) 169,178 Darwin 227,138 Canberra 87,013 Sunshine Coast (b) 14,303 Port Hedland 8,629 Newcastle (c) 6,687 Norfolk Island (d) .. Townsville (e) 3,304 ALL AIRPORTS 41,888,029
Passengers YE Apr 20 14,665,432 9,866,675 5,683,102 3,858,648 1,006,204 827,701 541,281 363,139 228,689 72,576 13,084 8,009 7,371 1,878 .. 37,143,789
% of total % change 20/19 39.5 -12.8 26.6 -12.7 15.3 -8.2 10.4 -11.4 2.7 -3.7 2.2 -16.1 1.5 -17.9 1.0 +114.6 0.6 +0.7 0.2 -16.6 0.0 -8.5 0.0 -7.2 0.0 +10.2 0.0 .. .. .. 100.0 -11.3
(a) Scheduled passenger services commenced Dec ‘18 (d) Scheduled services ceased May ‘17 and recommenced (b) Seasonal services only Sep ‘19 (c) Scheduled services (seasonal) recommenced Nov ‘18 (e) Scheduled services ceased Sep ‘18
Source: BITRE
“
...A balance must be struck between continuing to fight the virus and saving industries so ravaged since the turn of this awful year
”
In Europe, however, the pandemic has eased to a point where authorities are tentatively re-opening borders. They have concluded, rightly, that a balance must be struck between continuing to fight the virus and saving industries so ravaged since the turn of this awful year. And that includes travel and tourism. To that end, while Australia and New Zealand flap around and prevaricate over the Tasman bubble, air bridges between numerous European countries are set to offer desperately needed respite. Birmingham, though, seems to have discounted any prospect of Australia forging similarly reciprocal arrangements. If he’s waiting for a vaccine before releasing the travel handcuffs there’ll be nothing left of the industry.
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Wat Arun, Bangkok
ISSUES & TRENDS
IF AT FIRST YOU DON’T SUCCEED... THE acquisition of Farelogix by Sabre was announced more than 18 months ago now, but somehow it was one of those deals which seemed destined never to be consummated. Objections from regulators on both sides of the Atlantic kept the purchase on ice, and the pair ultimately agreed to abandon the merger in early May after the UK [The merger will create Competition and Markets Authority a] next-generation effectively digital platform to help kyboshed it for support airline industry ten years. recovery and enable But lo and behold, just a new era in airline over a month commerce powered by later Farelogix innovation, technology has now been snapped up by and partnership someone else. A company called Accelya, which many in the industry had never heard of, announced it would combine with Farelogix to create a “next-generation digital platform to help support airline industry recovery and enable a new era in airline commerce powered by innovation, technology and partnership”. Apparently not facing the same competition issues as the Sabre deal, the Accelya acquisition of Farelogix is expected to be finalised in the next month or so.
“
”
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travelBulletin JULY 2020
AFTA VIEW An update from the Australian Federation of Travel Agents
WE START the new financial year with a new CEO and a very different landscape ahead of us. Darren Rudd brings the skills, relationships and expertise which are so critical to making sure that our sector is supported through this. COVID has already been a massive hit to Government’s bottom line at a Federal, State and Territory level. In order to access ongoing support, we need to keep up the fight. We will continue to focus on the resilience of agents, the economic contribution and the critical role we play in supporting consumers and the wider travel and tourism sector. From his very first day in the job, Darren has been front-footing the case for our member agents. In fact, from day one, Darren and a number of agents were briefing local MPs, raising awareness and building support while continuing to amplify our voice in Canberra and with State and Territory Governments. We also have been working with individual members, helping them tell their stories and the brutal reality of life as a travel agent in today’s environment. There’s nothing like hearing it direct from an agent whether you’re a politician or a journalist! We successfully engaged with the two shortlisted bidders for Virgin Australia, securing commitments to honour pre-paid tickets. This was a massive win for agents and for consumers. The feedback on our range of webinars continues to be fantastic. We are continuing to deliver what our members tell us they want and many of our webinars have been oversubscribed. Recent topics have ranged from ‘Having Difficult Conversations’ with Jo Hanlon through to the TwinLife Marketing Workshop Series. There’s no doubt these are challenging times, with more challenges ahead. Together, we have a powerful voice and once that reaches right across this big, beautiful nation. Let’s stay focused and working together as we shape our future and Australia’s recovery.
GET READY FOR THE NEW WORLD LAST month a survey of Travel Daily readers highlighted the key importance of the JobKeeper program in sustaining the industry through the dark times of COVID-19, with almost 100% of respondents confirming they had accessed the program. The research, conducted in partnership with Malcolm Peak of Peak Corporate Solutions, also reflected the paralysis that the coronavirus has enforced on travel agents, with many not yet making contingency plans for their longer term future.
99%
of respondents had accessed the JobKeeper program
Of the 72% that had undertaken some planning, about two-thirds were banking on a continuation of the JobKeeper program, half had planned for a relaxation of lockdowns and travel restrictions, and just over 28% had planned for ongoing rental relief. “Interestingly, 47% had planned for no ongoing government support, and our view is that travel agents that had not incorporated this into their planning were risking being
left without options over the coming months,” Peak wrote in his collation of the results. He also raised the concerning red flag that less than 1% of respondents had commented that they were likely to have to look for alternative employment. “Our view is that many more need to consider this option if they are unable to effectively put in place a plan that allows their business to operate in the new world post COVID-19,” he added. A particularly sobering outcome from the survey related to the length of time respondents said they expected to be able to operate without government support if international travel restrictions continued to apply. Less than 10% said they would be able to operate for 12 months under travel restrictions without supplementary income from the government, while two out of five expected to only survive for three months – in line with AFTA’s recent member survey
8.5%
of respondents would be able to operate while travel restrictions continued for another 12 months without any government support
72% planned for the future post JobKeeper 64% banking on JobKeeper being extended 47% banking on the lifting of travel restrictions 28% banking on ongoing rental relief 28% banking on other ongoing government support
38%
of respondents were not aware of what AFTA was doing to support the industry
which was used to bolster the Federation’s case for a JobKeeper extension for the travel industry. The survey also gave an insight into industry perceptions of AFTA’s actions through the pandemic. It’s indisputable that the Federation has been working incessantly for months to promote the interests of agents, but much of the lobbying has been behind the scenes and that was clearly reflected in the outcome of the survey where a significant number of respondents commented on the need for a more public campaign – including educating the public on the refund processing practices of major airlines, and more positive promotion of travel agents in mainstream media. As was demonstrated in the A Current Affair fiasco leading to the resignation of former AFTA CEO Jayson Westbury, it is extremely difficult to turn the tide of negative media sentiment. Nevertheless many felt AFTA was not visible enough and despite the extensive education, training and support provided by the Federation through the pandemic, the perception by some was that more visibility was required. The key outcome, according to Peak, is to note that while JobKeeper is giving the industry some breathing space, anyone in travel needs to be planning right now for a range of scenarios so they can sustain their businesses in the long term.
travelBulletin JULY 2020
9
ISSUES & TRENDS
AFTA LAUNCHES MICROCREDENTIALS
THE Australian Federation of Travel Agents (AFTA) is giving its members access to over 250 courses to help them upskill during down time. The online Education and Training suite will debut this month with an initial 60 short, sharp, high impact courses called Micro-Credentials. Launched in partnership with AFTA’s online digital resource partner Learning Vault, each course will be aligned to a training unit within a Vocational Education and Training (VET) nationally recognised qualification – including Diplomas and Advanced Diplomas in Travel and Tourism, Leadership and Management and Business Management. The topics are predominately focused on supervisory, managerial, and owner-operator business skills such as leading with emotional intelligence, social media marketing, coaching, mentoring, and working and managing remotely. As they are developed, further courses will be uploaded, with the Federation anticipating the platform will reach 250 courses. Members have the freedom to choose which topics are of the most interest and relevant to their
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travelBulletin JULY 2020
business and needs. Once a member completes a course, they will receive an AFTA-endorsed digital badge (or certification) which can then be used on CVs, and social media platforms such as LinkedIn. AFTA Acting General Manager, Operations, Courtney Duddleston told travelBulletin that during COVID-19, the Federation had “been looking at innovative ways to empower the travel industry workforce to build on and build further capability in best business practice. “We believe business skills and capabilities are critical to the continued success of AFTA members, both now and post COVID-19,” she said. Each course will be “the cost of a lunch”, and the Federation and Learning Vault will not generate revenue or margins with the offering. “The cost of each course only covers initial outlay or costs and is merely a recovery cost,” Duddleston said. AFTA highlighted that “a unique opportunity exists for all AFTA businesses and their staff (including those who have been stood down or on adjusted work hours) to learn new skills that can
“
A unique opportunity exists for all AFTA businesses and their staff (including those who have been stood down or on adjusted work hours) to learn new skills that can assist to provide the competitive edge when the market rebounds
”
assist to provide the competitive edge when the market rebounds”. The launch follows AFTA ramping up its webinar program in March to help its members feel supported, informed and connected through COVID-19. This saw the Federation deliver a total of 53 webinars and engage with over 10,000 travel agent members.
CATO VIEW
Hooker Valley Track, New Zealand
Brett Jardine, Managing Director, Council of Australian Tour Operators
THE Annual General Meeting of the Council of Australian Tour Operators was held late last month with a record eleven nominees vying for six vacant Board positions. Having a field of high-quality candidates seeking to join the board speaks to how engaged our members are. Our Board is made up of ten representatives from within our 170 plus membership group. Four CATO Board Members are mid-way through their two-year term including current Chair, Dennis Bunnik, Bunnik Tours, along with Brett Mitchell, Intrepid Group; Amanda McCann, Collette and Julie King, Julie King & Associates. Liz Anderson from Sundowners Overland was elected unopposed as CATO’s Vice-Chair for the next two years, while David Walker from Sno’n’Ski Holidays has been returned to the Board for his third consecutive term. The four other successful nominees that join the CATO Board are all newcomers and include a strong line-up of youth, capability, and experience from a cross-section of our membership. They are Aaron Zoanetti, Pointon Partners Lawyers; Lisa Pagotto, Crooked Compass; Brad McDonnell, Entire Travel Group and Peter Douglas, Globus Family of Brands. With many learnings coming from the current COVID crisis, the CATO Board will be leading our membership group in tackling a number of potential reform areas. A good example of one such topic is operators’ booking terms & conditions, where a lack of consistency has not served us well during COVID. We have already moved on this issue and are working with CATO Associate Member, Pointon Partners, to develop what we are keen to see as a core set of standard T&Cs that can potentially be adopted by all participants in the land-supply sector. In many (if not all) cases, operators are likely to require some bespoke additions to any standard T&Cs but if the vast majority are working off the same base line, future tussles with the likes of the ACCC should certainly be kept to a minimum.
INDUSTRY FROTHS OVER BUBBLES CALL them green lanes, priority channels or simply travel bubbles, the concept of bilateral travel agreements between countries which have managed to get a handle on COVID-19 is an intriguing possibility which continues to quicken the pulse of travellers eager to get away once again. Initially posited as an idea for Australia and New Zealand, bubbles are also believed to be under discussion for Fiji, Hawaii, Japan, As the Northern Singapore, the Hemisphere swings into UAE and some its traditional summer other South Pacific nations, holiday period pressure and it’s hoped is on to open borders, that something but unfortunately any concrete will emerge in the COVID-19 surge is likely coming weeks. to see countries take a On a worldwide basis more cautious approach similar ideas are either being implemented or under consideration in the Baltics, the Nordic countries, the Balkans as well as other parts of Europe – but the big question as always is keeping a lid on coronavirus. As the Northern Hemisphere swings into its traditional summer holiday period pressure is on to open borders, but unfortunately any COVID-19 surge is likely to see countries take a more cautious approach – as has been evident locally with politicians of all persuasions rightly prioritising safety, much to the frustration of the Australian and New Zealand travel and tourism sectors.
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Coronavirus is forcing the industry to change, whether we like it or not. The havoc being wreaked by the dreaded “c-word” means it’s tempting to just curl up into a ball and wait until the storm is over. But some in the industry are getting on the front foot instead and meeting the challenges head on with new products and in some cases a completely new way of doing business. travelBulletin checked out some of these innovations.
BUNNIK TOURS
Heeding the winds of change
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WHILE many travel businesses have chosen to pivot towards launching new product during the health crisis, family-owned small group operator Bunnik Tours has opted instead to breathe new life into the sector by launching a new business arm called Little Windmill Marketing. Leveraging existing expertise within the business, Little Windmill Marketing was set up to assist travel companies with a host of important marketing functions, such as strategic planning, digital media campaigns, content creation, branding, graphic design and website development.
Heading up the new division is Bunnik’s Director of Marketing Catherine Kelly, who believes the new splinter company will provide an essential service to an array of small to medium-sized travel
businesses who require the right expertise to emerge from the pandemic in good shape. “We recognise that a lot of small to midsize companies in the travel industry are faced with the need to come out of lockdown in a really impactful way but may not have the marketing resources and know-how or the big budgets to capitalise on the opportunity,” she said. Addressing the need to adapt to the dramatic change in the marketplace precipitated by COVID19, Kelly said honesty and an audit of Bunnik’s strengths were vital in making the right decision about what to do next. “This was part of a speedy pivot to adapt, speedy but with plenty of frank discussions and planning sessions to make it meaningful and worthwhile, prior to COVID-19 we were operating in-house but as some projects have slowed we felt there was an opportunity with our time and skillset to offer what we do externally,” Kelly said. “At Bunnik Tours we’ve always handled the majority of our marketing functions in-house which has meant that we have a highly skilled team of marketers who are knowledgeable across multiple channels”. To mark its launch, Little Windmill Marketing is offering a bonus social media package valued at $495 for any client who spends more than $1,000 on its services.
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APT
Domestic double-down APT is an operator which already has its roots deep in the domestic market, but despite its existing offering has seen an opportunity to expand with the launch of a new Luxury Short Breaks range. With multi-night stays at some of Australia’s most exclusive hotels and lodges, the fully escorted trips include travel onboard APT’s own fleet of customised luxury 4WD adventure vehicles, in small groups with a maximum of 20 people. Managing Director Chris Hall told travelBulletin the new touring style also incorporated no more than three stops per trip, giving more time for intimate explorations of some of Australia’s most spectacular and remote regions in “world class style”. “As we all know the travel industry has changed dramatically, and our priority now is to create incredible experiences that are possible in this new travel landscape,” he said. The initial range includes a six-day Margaret River 4WD exploration staying at the exclusive Bunker Bay Resort, a week-long South Australia Flinders
Pullman Bunker Bay
Ranges & Wineries trip which includes two nights ‘glamping’ at the Ikari Safari Camp in Wilpena Pound, and a sixday Tasmanian Epicurean 4WD Escape including two nights at Saffire Freycinet and three nights at Hobart’s upmarket Henry Jones Art Hotel.
Flinders Ranges
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As we all know the travel industry has changed dramatically, and our priority now is to create incredible experiences that are possible in this new travel landscape
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Chris Hall, Managing Director, APT
“We are dedicated to continuing to being the leaders of domestic travel,” Hall said, noting APT’s strong pedigree in the sector after winning Best Domestic Tour Operator at the National Travel Industry Awards for seven of the eight past years. “It is in our DNA to always
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be the best,” he added. The industry can also expect to see more domestic innovation from APT in the coming months, with Hall confirming the company was in ongoing discussions about domestic small ship cruising. One of its vessels remains in local waters and can potentially be deployed for Australian itineraries as soon as the Government gives the green light.
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CREATIVE HIRE
Getting really creative THE complete shutdown of the business events sector left exhibition rental company Creative Hire and its sister company DisplayWise reeling. Suddenly there was no demand whatsoever for their services, so Managing Director Tim Russell put his thinking cap on and in a true pivot created a new business which hopefully will fill an important role in the post-coronavirus world. Utilising the company’s existing expertise in industrial design and manufacturing, BARE Hygiene was born, giving a new stylish option for businesses and venues to meet the COVID-19 requirements for hand sanitisation. “We saw a need for welldesigned hand sanitisation units that would suit premium venues and locations, including corporate offices, retail spaces, restaurants, cafes and hotels,” Russell said.
But it’s not all just about filling in while COVID-19 restrictions are in place. “We also wanted to create solutions that we could incorporate into our exhibition hire range, so as events start to return, conference organisers have premium solutions ready to use within their events,” he added. The BARE Hygiene range offers a wide variety of looks, branded as Contemporary, Endure, Vogue and Luxe with freestanding, countertop and wall-mounted options. All units come in a choice of premium finishes and can be custom branded. Customers are able to purchase them outright or simply hire them on a short-term basis. Russell said the company hopes to return to its core exhibition and events business as soon as possible, and was already working proactively
with some clients to plan for the industry’s reopening as restrictions are eased.”However with hand sanitisation expected to be a health recommendation for many years to come, BARE Hygiene will become another core service area of the business and here to meet market demand for the long-term,” he said.
AUSTRALIA AND BEYOND HOLIDAYS Switching tack
AUSTRALIA & Beyond Holidays is another of the many business which has had to pivot its model to survive. “We were doing inbound, we did it very well, we did over 500 groups per year inbound to Australia, that all stopped of course, and we’ve pivoted to domestic,” explained Managing Partner Simon Bernardi. Despite the headwinds, the company has reported early indications of success. “We’ve had 100 travel agents sign up to use our system, and
200 on our new Facebook page for Australian agents and suppliers, and we’re getting more enquiries offline as well.” Bernardi hailed the fortunate position his company was in, as a business-to-business operator, which was able to offer most of its products and services directly to Australian agents, capitalising on a potentially lucrative domestic boom. “When you’re a wholesaler who sells international, you don’t have the experience a lot of our staff Continued over page
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You’ve got this pent-up demand with people who have got significant spend, probably have Australia on their bucket list but want to travel the world…now is a great time to get... [them] spending that money
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COVER do,” Bernardi said. “You’ve got this pent-up demand with people who have got significant spend, probably have Australia on their bucket list but want to travel the world…now is a great time to get those people doing those bucket list things
they’ve always wanted to do in Australia and spending that money. “That’s why we do the homemade journeys…people who want to do a bucket list thing want more value, they want high-end stuff, inclusions, and they want to do stuff different.” With agents also having to narrow their focus on domestic, Australia & Beyond’s platform is now offering the opportunity for that to take place. “We have an FIT booking system, but we also have a handmade section where we can put together family groups and create the itineraries the way people want them, and by doing that you create more value. They tend to cost
more, and they’re bigger commission items, where they’ve got potential to earn more money. “We offer net pricing so travel agents can do their own markups, they can book in the system, they can hold product…if it’s a big itinerary, they can send it to us, and we’ll see if we can source a larger commission through direct contracts we’ve got, or make some other suggestions. “We don’t want to get hundreds of thousands of bookings, but we want to get higher-value bookings so the agents can earn some money and the customers can get more value.”
Dining on Kangaroo island ©Tourism Australia
THE TRAVEL CORPORATION Leveraging your position PIVOTING its products to the new reality was a major challenge for The Travel Corporation – but the multi-faceted business did have a key advantage in the form of its home grown existing AAT Kings domestic operation. However with iconic brands like Insight and Trafalgar having a well-established clientele used to exploring Europe or the Americas, there was still a lot of work to be done to meet expectations in the development of new products that would appeal in travellers’ own back yards. Although part of the TTC umbrella, each brand has a very different identity, and for Insight Vacations in particular it was important to offer customers “everything they know and love about insight, now closer to
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home”. Managing Director Karen Deveson said while operations in Australia and New Zealand are being conducted in partnership with AAT Kings, the brand’s new range of Local Escapes was actually developed by Insight’s travel experiences team in Europe. Three Australian trips are on offer – naturally shorter than the extended journeys popular overseas – and there are also two new Insight New Zealand itineraries which hopefully will be accessible by Aussies as the proposed “travel bubble” is implemented. Based on customer feedback the journeys also incorporate intimate food and wine experiences as well as opportunities to “give back” to communities impacted by natural disasters.
Interestingly, Deveson also cited internal research which found Insight customers were surprisingly unaffected financially by the COVID-19 pandemic. A significant proportion said they were willing, ready and able to travel, with 60% keen to take a domestic trip before
INTREPID
Going local globally
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INTREPID Travel believes the COVID-19 pandemic will usher in a new era of “slow and grounded travel,” with a real desire from travellers to engage with local communities
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Cradle Mountain, Tasmania
the end of 2020. Trafalgar’s new domestic range, unveiled by outgoing MD Jason Wolff, complements its existing Australia and New Zealand program with a “Near not Far” limited series featuring three seven-day trips. Although many Aussies are naturally familiar with their own country, Trafalgar is promising to take guests “beyond the farm gate” and offer experiences with local landowners and providores. The great news for travel agents is that because the new products are part of The Travel Corporation stable, customers who are holding travel credits now have an opportunity to use them up on travel this year rather than having to defer their trips for another 12 months as the pandemic subsides.
and undertake activities close to home. Despite the closure of borders and cessation of most travel activity, there’s been no downtime whatsoever for the company’s Asia-Pacific Managing Director, Sarah Clark, who while sheltering in her home state of Tasmania, has been undertaking the development of the new Intrepid Local range as Global Project Lead.
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We wanted to create a product range for locals by locals...
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Sarah Clarke, Managing Director Asia-Pacific, Intrepid Travel
Clark told travelBulletin “we wanted to create a product range for locals by locals, that would not only bring travellers back together after months of isolation, but also give them a way to support their own communities and businesses rebounding from the pandemic”. Rather than just being focused on Australia, the new range has trips across the globe meaning locals in key source markets can now more easily experience their own back yard. In fact with a network of DMCs across the globe Intrepid is well placed to engage with travellers in many countries, and had even trialled offering close-tohome product with locals in Vietnam, Clark said. The new range comprises more than 75 multi-day adventures, each developed to empower and support local economies during the recovery, in line with Intrepid’s values of using travel as a force for good. There’s also a new “Intrepid Retreats” travel style, in which groups immerse themselves in a single location, staying in handpicked accommodation, to undertake daily activities such as hikes, farm visits and wine tasting. Intrepid’s post-COVID recovery plans also feature its extensive global range of Urban Adventures day tours, while the company is also set to ramp up its tailormade and private group product range for travellers wanting a customised version of Intrepid group tours.
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CROOKED COMPASS Turning closer to home BOUTIQUE tour operator Crooked Compass sprung into action to launch product for Australia, and then New Zealand after COVID19 deemed all its international small group tours inoperable due to global border closures. “We have had to stand down incredible staff, and the financial impact on the remote communities we support is heartbreaking,” Founder and Director Lisa Pagotto told travelBulletin. “We were set for our biggest year yet, only to have our own growth curve flattened by the impact of COVID.”
In May, Crooked Compass Australia made its debut, offering product designed to show travellers a side of the country “they wouldn’t even dream existed”. Itineraries are shorter in length – ranging from four to eight days – and initially covered Tasmania and NSW, before expanding to Queensland, the NT and SA. In Tasmania, experiences included a visit to a family which owns the private property which is where European explorers first
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made land contact with the island state and its first people. The launch was followed in June by three New Zealand itineraries, covering the North Island, South Island, or offer the option to combine the two. The need to turn around the new portfolio in a shorterthan-usual period required Crooked Compass to “work smarter”, but the company found that many local partners were eager to help develop the product at a much faster pace. Pagotto said innovation from both parties was fuelled by a need to stay ahead of a changing landscape and a want to be ready for when the bounce back began. “There have been challenges in replicating our traditional style of international travel within Australia/NZ, however, we have been able to procure some incredible journey’s that highlight phenomenal experiences right across the region,” she added. Pagotto said there are plenty of opportunities for agents to sell domestic, but recommended they delve into what type of domestic travel they want to sell. “As with international travel, you can’t be everything to everyone and whatever you are passionate about will sell over anything
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else,” she explained. “It is all about re-discovering your style and passion within a domestic landscape and demonstrating the value an agent can bring to co-ordinating clients travel needs. In a tough time like this, where delivering a service above and beyond (despite the exhaustion everyone currently feels), will shine through when consumers are nervous and need their confidence restored.”
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CRUISE
HURTIGRUTEN LEADS THE OCEAN SAILING PACK HURTIGRUTEN has recommenced cruising mid-last month, becoming the first, and thus far only ocean cruise line to do so. The newly updated Finnmarken disembarked on Hurtigruten’s original coastal voyage from Bergen, a 12-day itinerary which does not leave Norway’s waters. The cruise travelled with mostly
Norwegians and Danes on board, with Hurtigruten being the only cruise line to continue sailing throughout the pandemic, sailing two ships along the Norwegian coast. Hurtigruten Chief Executive Officer Daniel Skjeldam was on board the first cruise, which saw the introduction of a range of
health and safety initiatives. “Gradually restarting operations in Norway is the natural first step towards a return to full operations,” said Managing Director Asia Pacific Damian Perry. “This is also welcome news for our staff and crew returning to work, and the local communities we support along the coast.”
A QUANTUM LEAP FOR ROYAL CARIBBEAN ROYAL Caribbean International (RCI) is making a “Quantum leap forward” in Australia, last month opening bookings for summer 202122, which will see Quantum of the Seas’ (pictured) first ever season in the country. Fresh off a rejuvenation last year, Quantum will join her Quantum-class sister Ovation of the Seas in sailing from Sydney, while Radiance of the Seas will sail a range of South Pacific holidays from Brisbane, during RCI’s biggest season in the city. Voyages range from eight to 12 nights, including 10- to 13-night New Zealand trips and seven-to-eight-night Australian vacations. After debuting in North America, Quantum was then based year-round in China, before splitting her season between China and Singapore; she will now divide her time between Alaska in the northern summer alongside Oasis and Radiance, before the trio repositions to Australia.
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POST-COVID, CRUISE COULD BE THE SAFEST KIND OF HOLIDAY DESPITE the negative rhetoric that has surrounded the cruise industry during the outbreak of COVID, in a world of post-pandemic travel, a cruise ship with proper protocols and protections in place is at least as secure as a land-based hotel or resort, and in many ways, it is safer. In contrast to land-based hotels and resorts, there are very controlled exit and entry points on a cruise ship. The service personnel live in the vessel and don’t go home at night. There are controls in place to limit outsiders from entering. Not only that, but most cruise lines who offer excursions ask passengers to sign up for these onshore outings prior to departure, similar to the kind of contact tracing that is becoming commonplace in restaurants and bars. These excursions can also be limited to operators who are have approved COVID-safe protocols implemented. Bruce Nierenberg, former CEO of Coast Cruises, former EVP of Norwegian Cruise Line and founder
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of multiple other cruise lines has suggested cruise lines should take this opportunity – with more than 90% of ships in the world laid up – to present a bullet-proof health and safety operation protocol that includes the embarkation process, the protection of guests when in ports of call, and the protection of communities the ships visit. Cruise lines should seriously consider installing modern technology available to them into air conditioner systems, that purifies the air 23,000 times per day. If the right tech is chosen, it can even turn the air into a constant 24/7 destroyer of pathogens and bacteria on the entire vessel for passengers and crew anywhere the air flows to. These devices can be easily and economically installed in any ship HVAC system and can also be used when individual air conditioner units are in each stateroom. Cruise lines should also apply new high-tech solutions to all surfaces on the vessel, both
on inside and outside decks, which actively kill pathogens and virus/bacterial agents and add new solutions to their laundry procedures that are safer than traditional products, make textiles onboard safe to use and continue to kill pathogens during use. Currently, the industry relies on what could be described as a ‘spray and pray’ procedure, and has done so for years. The results of the pandemic can’t be reversed, but it would be criminal if the industry didn’t take the opportunity to use this terrible event to make itself safer in a meaningful way, and give it the best product available to minimise any future attacks from the unknown disease world, which can be expected every five-10 years. Until a vaccine is readily available for everyone, which will have a huge impact on vacation demand, the industry can also temporarily reduce capacity and social distancing onboard, as well as introduce masks, gloves, and other personal protective equipment. Safety, health and security are not competitive issues for the marketplace, they are basic requirements of what people expect when they travel. The cruise industry has been one of the most innovative sectors of tourism over the past 30-plus years. Its innovation in itineraries and activities onboard are amazing. It’s up to the cruise industry to do the right thing. If it does, it can develop and present a solution that will put cruises head and shoulders above the remainder of the resort business.
Pullmantur reorganised ROYAL Caribbean Cruises last month confirmed the filing for reorganisation of its 49% Spanish joint venture Pullmantur Cruises. There is speculation the brand may disappear entirely, with cruises cancelled until 15 November and crew already removing equipment and other fixtures from the cruise line’s three vessels, which are in “cold lay-up”.
CLIA’s voluntary US extension CRUISE Lines International Association (CLIA)’s members have voluntarily suspended cruise operations in the United States until September, despite the current no-sail order issued by the US Centers for Disease Control & Prevention expiring in July. “Although we had hoped that cruise activity could resume as soon as possible after that date, it is increasingly clear that more time will be needed to resolve barriers to resumption in the US”, CLIA said.
MSC 2020-21 season to feature Australia MSC Cruises has announced its new northern winter 2020-2021 program, offering more than 90 different itineraries across Australia, Asia, the Caribbean, the Mediterranean, South Africa and South America. A highlight is the third MSC world cruise, departing in January aboard MSC Magnifica instead of MSC Poesia, but still undertaking the original 119-day journey to visit 53 destinations in 33 countries, including Australia.
CLIA VIEW
Joel Katz, Managing Director CLIA Australasia
SPEAKING UP FOR OUR COMMUNITY AUSTRALIA’S cruise community extends far beyond the cruise lines themselves, which is why CLIA is working to make sure governments understand the full impact of the current cruise suspension on travel agents and other tourism businesses. To support our case, we commissioned analysis from the AEC Group which shows the suspension of cruise operations is likely to cost Australia more than $1.4 billion in lost economic activity by midSeptember and threaten the jobs of more than 4,800 people. If the suspension continues beyond September and into the summer peak season, there would be a further $3.8 billion in economic losses and another 13,000 jobs would be put at risk. The suspensions that cruise lines and governments enacted worldwide have been the right response as we confront COVID-19, but there is an enormous cost to the wider cruise community. There are
many thousands of travel agents, tour operators, ports and destinations, technical support providers, and food and beverage suppliers who are suffering enormous financial stress. In total, cruise tourism is worth $5.2 billion a year to the Australia economy and supports more than 18,000 jobs. These jobs are spread across almost 50 destinations and every state, including many regional and remote communities that have suffered enormously in the tourism shutdown. CLIA has presented this economic insight in submissions to the Australian Government, to back our argument that the JobKeeper scheme should be extended for travel agents and the wider travel industry. As cruise lines work on the new health protocols, we’ll also lobby all levels of government to support the interests of our agent members and those of the wider cruise community.
HEADLINES JUNE 2020 10 Jun 15 Jun 16 Jun 19 Jun 22 Jun 29 Jun 30 Jun
Greg Mortimer pax were asymptomatic Helloworld drops Norwegian as preferred Creative Cruising free white label setup Hurtigruten recommences cruising CLIA suspends US cruising until Sep NZCA agitates for cruise resumption Aurora Expeditions seeks new MD
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APP HAPPY: AIRHELP THERE are thousands of travel apps out there, but Airhelp offers a unique solution to the problem of airline delays. Under EU legislation, travellers are entitled to up to ¤600 in compensation if their flight is delayed. The Airhelp app offers travellers a way to alleviate the frustration of airline delays but helping them navigate whether or not they are eligible for compensation. Unfortunately travellers whose flights were cancelled due to coronavirus aren’t entitled to a payout, but any traveller flying in the EU in the last three years who experienced delays or cancellations may be. Apart from the handiness of having the Airhelp app in your pocket on the go, the company will also pay commission to agents. If you contact Airhelp they will search flight data from the last three years that are eligible for compensation and all you need to do is refer your customer to the app or website where they submit a claim and if it’s successful, both you and the consumer get paid. During the coronacrisis many are short of cash, so why not take the opportunity to make contact with past customers with some good news!
We’ve trawled through the Travel Daily Window Seat archives to give you a blast from the past. Here’s a gem from 06 Mar 2012: A FRENCHMAN has taken Google to court after a ‘Street View’ image of his home showed him urinating in his front yard. The 50-year-old lives in a small village in the Maine-et-Loire region, and says that even though his face has been blurred out the image has made him a laughing-stock. He’s demanding the removal of the offending pic plus €10,000 in damages, with his lawyer saying that “everyone has the right to a degree of secrecy”.
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UNSCRAMBLE How many words can you make out of these nine letters? Every word needs to include the centre letter, have four letters or more and not be a proper noun or a plural. You can only use each letter once. There’s also one word that uses all nine letters.
R O H D T O M E G
Good – 16 words Very good – 24 words Excellent – 31 words
NOTE: We’ve used Chambers Dictionary to decide what words are acceptable.
Unscramble: dote, doth, ergot, GODMOTHER, goth, grot, hoot, hooted, hooter, method, metro, moot, mooted, mooter, mote, moth, mother, motor, motored, other, root, rooted, rote, term, them, therm, throe, toes, tome, tore, trod
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