AUGUST 2021
THE PANDEMIC AND THE ENVIRONMENT: a time to pause for effect With the industry in a pandemic-induced standstill, businesses are facing up to the challenge of climate change
PLUS CHOICE PROPOSES INDUSTRY REFORMS AND AUSTRALIA IS COMING LAST IN CRUISE
CONTENTS
Shared Adventures in Extraordinary Places
COVER STORY
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Help your valued clients discover a variety of Australian wonders travelling in limited company, savouring unforgettable highlights on meticulously handcrafted itineraries, soaking up epic landscapes and ancient cultures. They’ll meet the locals, indulge in epicurean delights and bed down in handpicked accommodation. As purveyors of luxury Antipodean adventure for more than 30 years, on an A&K small group journey, your clients will experience more than they ever thought possible and with the privilege of rare access as only A&K can deliver.
10 A time to pause for effect It’s almost blasphemous to ask but is there a silver lining to the pandemic for the travel sector? With the industry at a virtual standstill, the pause has given many businesses the opportunity to re-evaluate their ethical responsibilities, such as facing up to the challenge of climate change. Adam Bishop reports.
MONTHLY 02 State of the industry 06 Issues and trends 16 Cruise 20 Last word
Tasmania: Wine, Wildlife & Wilderness
COLUMNS
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02 From the publisher
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This month’s contributors
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06 AFTA View
Joel Katz, Tom Manwaring
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travelBulletin AUGUST 2021
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STATE OF THE INDUSTRY
From the publisher Bruce Piper
IN BRIEF
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IT’S definitely easier said than done, but focusing on what we can individually control, looking above the “noise” of the dayto-day COVID-19 bad news and taking time out for a bit of exercise each day are some key strategies for surviving the current dark times. That was some of the sage advice offered by Debra Fox and Susan Haberle during a Travel Community Hub webinar last week, and it certainly resonated. The pair, both formerly longtime senior APT executives, have undergone their own personal ordeals over the last 18 months, like so many in the industry finding themselves with significant career disruptions, alongside extensive time in Victoria’s lockdown. They’ve picked themselves up, dusted themselves off and created their The Inspire Collective consultancy, finding that despite a lifetime in travel and tourism, their skills are in fact very useful to industries like technology and education. However, like all of us their hearts will always remain in our favourite sector, and so they are also determined to help the industry chart a path to the future, with the virtual session discussing the early results of a
Adventure World goes global THE Travel Corporation is making the most of the post-COVID travel boom which is starting to appear in much of the rest of the world, announcing that its Adventure World business would launch its extensive product range in the USA this month. The move is the outcome of a huge amount of work by Adventure World MD Neil Rodgers and his team, and
travelBulletin AUGUST 2021
survey they are running to help answer the question “where to now?” for the travel industry. They also noted that history shows that crises like the current pandemic war always lead to innovation and growth and we need to be ready. Identifying what we can control and then looking at what opportunities that could lead to is a good way to think, and that’s certainly the approach I’m going to take! MEANWHILE perhaps in that vein, it has been encouraging to see some positive developments for the industry’s recovery over the last month. Despite the doom and gloom of lockdowns and indecision, the Federal Government is clearly considering what postpandemic travel will look like, with a tender for the creation of what looks to be a smartphonebased “vaccine passport” app. Changes to the inbound passenger declaration also clearly envisage the possibility of different quarantine regimes for vaccinated passengers, while Qantas has announced it will adopt the IATA Travel Pass platform once its international services resume. Baby steps indeed, but in the right direction for the industry.
was always on the cards even pre-pandemic. Rodgers told travelBulletin that TTC’s owners, the Tollman family, had suggested debuting the product in the USA, followed by Canada and then the UK. Product for 2022/23 has now been loaded into reservation systems, with Rodgers hoping to capture some of the demand already being seen by sister brands such as Trafalgar and Uniworld in the USA. The genius move will
also help keep Adventure World’s local res team busy, with the Genesys Global Contact Centre platform allowing the Australia-based team to manage overseas reservations.
DEAN LONG RETURNS TO AFTA
Aeronology marches on with NDC AUSTRALIAN travel technology platform Aeronology has begun rolling out NDC connections, with direct links going live with Qantas and Singapore Airlines last month and a number of other airlines expected to be added in the coming weeks. The company, which has been certified by IATA as one of a handful of Level 4 NDC Aggregators across the globe, claims to be “shaping the next paradigm of doing business for travel advisors,” with productivity through the simple pointand-click interface said to be about three times that of conventional travel industry booking systems. “Aeronology provides the NDC ability to search, shop, book, ticket, rebook, reissue, revalidate, void and refund all NDC and GDS/ NDC transactions on one screen,” said the company’s CEO Russell Carstensen. While the cloud-based industry booking platform is easy for advisors to use, it’s also a key breakthrough for airlines which can utilise the NDC technology to showcase more than just a simple seat to a destination, allowing “significant product differentiation and customer offers,” he added.
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Aeronology provides the NDC ability to search, shop, book, ticket, rebook, reissue, revalidate, void and refund all NDC and GDS/NDC transactions on one screen
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Russell Carstensen, CEO, Aeronology
THE Australian Federation of Travel Agents has named Dean Long (pictured) as its new Chief Executive Officer. The appointment comes almost three months after the abrupt departure of Darren Rudd, and sees Long return to AFTA where he was National Manager Strategy & Policy for five years from 2014. Since then he’s headed up the Accommodation Association of Australia, which is in the process of merging with the Australian Hotels Association. AFTA Chairman Tom Manwaring welcomed the appointment, saying “we couldn’t have asked for a better choice than Dean Long given his background across key sectors, his extensive experience within AFTA and his expertise and networks across government at all levels”. Long will join AFTA by midOctober after a transition from his current role.
CT Partners adds Magellan members IT’S been a big month for the CT Partners travel industry buying group, which has added two Victorian agencies to its ranks, as well as appointing a new General Manager. Matt Masson takes on the leadership role more than half a year since the untimely death of Ian Edwards, who had led the organisation since 2008 and sadly passed away just a few days before Christmas 2020. Masson’s
career has included roles at Buffalo Tours, Trails of Indochina and McLachlan Travel Group, and he will be supported by Nicole Boyer who is CT Partners GM Supplier Partnerships. News of his new role came just a few days after former Magellan Travel Group members from Victoria, Benalla Travel and where2travel, announced they were switching camps to CT just over three years after Magellan was acquired by Helloworld Continues over page
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STATE OF THE INDUSTRY
Travel Limited. Both said they were “motivated by the simplicity and transparency of the CT Partners business model, with 100% of supplier payments distributed through to members”.
New Fiji chief
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Tom Manwaring, Chairman,, AFTA
MAIN DOMESTIC ROUTES
VISITOR ARRIVALS
Top 10 domestic city pairs, May 2021
City pair
Passengers Passengers % change YE May 20 YE May 21 (000) (000)
Melbourne-Sydney Brisbane-Sydney Brisbane-Cairns Brisbane-Melbourne Gold Coast-Melbourne Gold Coast-Sydney Brisbane-Townsville Adelaide-Sydney Adelaide-Melbourne Ballina-Sydney ALL CITY PAIRS
7,245.1 3,876.4 1,047.8 2,919.6 1,716.3 .... 839.3 .... 2,029.7 356.4 49,572.9
1,711.5 1,098.1 857.8 756.9 674.8 644.8 586.0 543.7 537.5 478.8 19,562.2
RESIDENT RETURNS
Top 10 destinations, April 2021 Country of residence
May 2019
New Zealand USA UK Singapore Vanuatu Philippines China Tonga Hong Kong Kiribati All visitors arrivals
-76.4 -71.7 -18.1 -74.1 -60.7 N/A -30.2 N/A -73.5 +34.3 -60.5
117,520 56,410 29,980 41,610 1,630 16,160 94,690 1,340 21,120 260 668,300
May 2020
May 2021
1,190 28,510 320 970 340 860 100 570 10 560 70 370 90 360 0 310 80 200 0 200 3,400 36,190
Top 10 destinations, April 2021
% change - original Apr 19/ Apr 21 -75.7 -98.3 -97.1 -98.6 -65.9 -97.7 -99.6 -77.1 -99.0 -21.8 -94.6
Source: ABS
Country of stay
April 2019
New Zealand 90,190 USA 94,990 India 28,390 UK(b) 47,810 China(c) 59,550 PNG 6,340 Singapore 27,410 Pakistan 2,770 Hong Kong 20,430 Japan 41,660 All resident returns 866,300
April 2020
April 2021
1,380 55,440 1,080 810 2,680 510 1,050 460 820 410 170 300 320 290 660 210 220 160 170 160 13,380 62,360
% change - original Apr 19/ Apr 21 -38.5 -99.1 -98.2 -99.0 -99.3 -95.2 -98.9 -92.6 -99.2 -99.6 -92.8
Source: ABS
Source: BITRE
+2 92 -8 .3 % 9.
DOMESTIC AIR MARKET May 2021
Total pax carried Revenue pax km (RPK) Available seat kms (ASK) Load factor (%) Aircraft trips (000)
May 20
May 21
0.18m 0.18bn 0.46bn 40.1 7.8
3.38m +1,815.0 3.92bn +2,044.1 5.75bn +1,159.4 68.2 +28.1* 43.6 +456.2
.4 %
a private consortium of infrastructure investors lobbed a $8.25 per stapled security offer for SYD,
DATA ROOM
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We couldn’t have asked for a better choice than Dean Long given his background across key sectors, his extensive Takeovers on agenda experience THERE’S been plenty of within AFTA prospective merger and and his acquisition activity among expertise some of Australia’s key listed travel and tourism and businesses over the last networks month, with both Sydney across Airport and hospitality and gaming giant Crown Limited government in play. at all levels Perhaps opportunistically,
valuing the airport at more than $22 billion. A week later the airport’s Board formally rejected the offer, saying it undervalues the “strategic and irreplaceable nature of Sydney Airport which is a world class airport and one of Australia’s most important infrastructure assets”. A May bid for Crown Limited by rival Star Entertainment also fell over, but not for quite the same reason. Star had initially proposed a merger with Crown, seeking to create a combined $12 billion gambling behemoth, and had “limited engagement” with its target. However ongoing uncertainty due to investigations of Crown’s activities in NSW, Victoria and Western Australia had the “potential to materially impact the value of Crown,” according to Star, which said it remained open to exploring potential value enhancing opportunities.
4% .6% -95 .4% -89
BRENT Hill, long-time Executive Director of Marketing for the South Australian Tourism Commission, has been named as the new CEO of Tourism Fiji, seven months after the departure of Matt Stoeckel who became head of Sunshine Coast Tourism in December 2020. Hill will take a “critically important role not just for Fijian tourism, but for the Fijian economy,” according to the organisation’s Chairman, Fiji Airways CEO Andre Viljoen. “His proven expertise, experience and ideas for the industry’s
“
revival are a perfect fit for Fiji’s current requirements,” he added, with the resumption of travel set to see Fiji makret itself as an attractive, aspirational and safe destination. Fijian Tourism Minister, Faiyaz Koya noted that postCOVID restoration of tourism activity will ensure jobs for hundreds of thousands of Fijians and help the revival of the country’s economy.
-95.9%
Continues from previous page
Growth % Year end Year end May 20 May 21
Growth % 49.57m 19.56m -60.5 57.93bn 22.19bn -61.7 72.94bn 34.63bn -52.6 79.4 64.1 -15.3* 532.7 300.0 -43.7
-9 7.4 %
*Percentage points difference
Source: BITRE
-9 1
.6 %
-92.0% -93.5%
INTERNATIONAL AIR MARKET SHARE Share of passengers carried – May 2021
HEADLINES 01 Jul 01 Jul 02 Jul 05 Jul 07 Jul 08 Jul 09 Jul 12 Jul 12 Jul 13 Jul
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Pandemic slams domestic Club Med chief promoted Road map to new normal SYD receives takeover bid Vax passport tender issued CHOICE calls for reforms Travellers at risk of hack Fees vital for agent survival Brent Hill new CEO of Tourism Fiji Katrina Barry elected to AFTA Board
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13 Jul 14 Jul 15 Jul 16 Jul 19 Jul 20 Jul 22 Jul 23 Jul 23 Jul 26 Jul
Grant payments trickle out Qantas partners with Aeronology Dean Long named as new AFTA CEO New pax vax declaration AZ Europe, US travel issues? CVFR wins new Thai GSA Momento NCAT appeal push Stay at Skroo’s place(s)! NSW support package AFTA pleads for support
American Airlines, 0.9% Etihad Airways, 0.9% China Southern Airlines, 1.2% United Airlines, 1.3% Emirates, 1.9% Qatar Airways, 3.9%
INTERNATIONAL AIR ROUTES
Others, 6.0%
Top 10 city pairs, year end May 2021
City pair
Singapore Airlines, 5.7% Air New Zealand, 49.0% Jetstar, 6.7%
Qantas Airways, 22.6% Source: BITRE
Auckland-Sydney Auckland-Melbourne Auckland-Brisbane Doha-Sydney Guangzhou-Sydney Singapore-Sydney Doha-Melbourne Los Angeles-Sydney Doha-Brisbane Dubai-Sydney Top 10 City Pairs Other City Pairs ALL CITY PAIRS
Passengers YE May 20 1,267,725 993,865 759,578 461,492 287,423 1,243,368 286,613 730,579 7,142 639,303 6,677,088 27,318,793 33,995,881
Passengers YE May 21 101,228 64,522 63,668 48,697 33,457 32,114 30,288 30,056 28,016 27,934 459,980 533,480 993,460
% of total % change 21/20 10.2 -92.0 6.5 -93.5 6.4 -91.6 4.9 -89.4 3.4 -88.4 3.2 -97.4 3.0 -89.4 3.0 -95.9 2.8 +292.3 2.8 -95.6 46.3 -93.1 53.7 -98.0 100.0 -97.1
Source: BITRE
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ISSUES & TRENDS
AFTA VIEW Tom Manwaring, Interim Executive Chair Australian Federation of Travel Agent
Appellation Restaurant at The Louise
BAILLIE LODGES ADDS THE LOUISE LUXURY travel collection Baillie Lodges last month announced the acquisition of South Australia’s The Louise, an upmarket 15-suite luxury lodge in the heart of the Barossa Valley. The deal was described as a “natural fit” within the Baillie Lodges Australian portfolio, which includes Lord Howe Island’s Capella Lodge, Longitude 131 at Ayers Rock, Silky Oaks Lodge in the Daintree Forest and the flagship property, Southern Ocean Lodge on Kangaroo Island which is currently undergoing a rebuild after being destroyed during the early 2020 bushfires. The Louise deal continues Baillie’s expansion push, which follows a significant injection of equity capital by US private investment group KSL a few years ago. Since then the portfolio has also seen international growth, with the acquisition of New Zealand’s iconic Huka Lodge as well as Clayoquot Wilderness Lodge on Canada’s Vancouver Island. The Louise is a fascinating example of luxury hospitality development, having been created by owners Jim and Helen Carreker as a makeover of an existing country motel with a vision to showcase the Barossa’s most exceptional food and wine experiences. Baillie Lodges co-founder James Baillie said after a long association with the Carrekers through the Luxury Lodges of Australia group, “we have always considered that a marriage of The Louise’s culinary excellence with our growing portfolio of luxury lodges would be an ideal match”.
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AS THE cases continue to climb in Sydney and with no end to that lockdown in sight, AFTA continues to fight for the support our members so desperately need and support. This includes the ongoing and daily engagement on the finalisation of payments for Grants 1 and 2 and the push for wider, ongoing support including ideally something along the lines of JobKeeper. It also includes our shared direct and indirect advocacy alongside other peak industry bodies including the Australian Chamber of Commerce and Industry and the Business Council of Australia. JobKeeper is a neat, commonsense solution that helps meet the ongoing strain of those business costs that keep on rolling in. There aren’t too many other sectors out there like ours that would still qualify for JobKeeper 2.0 even if the turnover reduction threshold were 90% plus! Consumers need us now more than ever to help and, to support them, we need wider and ongoing government support. We continue to work with the ACCC, and Consumer bodies to make sure that we play our part in consumer awareness of the travel payment eco-system and their rights. The recent NSW Civil and Administrative Tribunal Appeals decision in Kiss v Parsons which overturned a Tribunal decision that the agent refund the consumer following cancellation of air travel and holiday bookings due to COVID highlighted some important steps for travel agents. Make sure you get and keep signed acceptance of your terms and conditions before payments are received. Make sure that your T&C’s include 1) that Rules and Restrictions apply; 2) that you as an agent are not liable for any loss or damage suffered in connection with the non-delivery of a travel product; or 3) that you are not liable for any breach of obligations by any third party travel provider. If you find yourself in the unfortunate position of facing a Tribunal hearing, make sure you cite Kiss v Parsons if appropriate. AFTA also continues to encourage suppliers to deal promptly with credits and refunds so as to reduce strain on agents and minimise the frustration at a consumer level.
CHOICE PROPOSES INDUSTRY REFORMS CONSUMER group CHOICE last month wrapped up a long-running investigation into the practices of the travel sector, releasing a major report based on feedback from thousands of consumers about their experiences through the COVID-19 pandemic. The report proposes a number of reforms “to improve consumer protections for people who book travel or tourism services that cannot be provided due to circumstances outside the control of the business and consumer,” with recommendations including a mandatory industry code which would apply to all airlines and large travel & tourism businesses which take money from Australian-based consumers.
“
...the key recommendations of the report have been designed with the express purpose of improving consumer confidence in travel something that everyone in the industry would agree is sorely needed
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Also on the agenda is a proposed governmentfunded Travel & Tourism Industry Ombudsman to manage complaints, governed by a board that includes equal numbers of consumer and industry representatives along with an independent chair. The Ombudsman would “have the power to issue determinations and decisions which industry are obliged to act on,” CHOICE suggested. CHOICE recommended the introduction of a “mandatory information standard” governing the details provided to consumers at the time of booking - including what refund they will receive if a business is unable to provide a service, information on how to lodge a complaint and, in the case of travel intermediaries, “a breakdown of fees and commissions”. Minimum requirements for travel vouchers and credits should be introduced, with at least three years’ validity, the ability to transfer to another person and to be split over multiple bookings, and an obligation to convert credits or vouchers to a
refund at the expiration of the validity term. The consumer group also suggested the Australian Competition and Consumer Commission should conduct a “market study into the travel and tourism sector” with a particular focus on travel agents and intermediaries, considering issues of competition, independence, contracting practices, pricing transparency and risk allocation through the supply chain. Flight Centre was particularly singled out in a subsequent follow-up from CHOICE, reflecting a high volume of anecdotal feedback collated during a survey which was used as the basis for the report and recommendations. The consumer group particularly blasted Flight Centre’s $300 cancellation fee - which was eliminated five weeks into the pandemic - as “exorbitant” and “steep”, while the company’s terms and conditions were described as “eyebrow-raising”. A Flight Centre spokesperson told travelBulletin the attack on the company by CHOICE was disappointing and had ignored some elements of a detailed response provided by the company - in particular “an agent’s ability to charge fees for the time they incur in securing refunds”. Despite some attacks on the industry, there was acknowledgement within the CHOICE report of the difficulties of the pandemic, with a number of survey respondents reporting positive experiences including “travel agents who went above and beyond in their efforts to obtain refunds for their consumers,” as well as businesses which gave refunds even though their terms and conditions didn’t technically require them to. And the key recommendations of the report have been designed with the express purpose of improving consumer confidence in travel - something that everyone in the industry would agree is sorely needed.
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ISSUES & TRENDS
Find your expedition cruise at hurtigruten.com.au
AFTA FLAGS CONSTITUTION CHANGE THE Australian Federation of Travel Agents is set to revamp the convoluted voting process enshrined in its constitution, with the issue highlighted during last month’s AFTA Annual General Meeting which for the first time in many years saw a tweak to the organisation’s Board representation. The existing constitution, developed in the mid-2000s, has served AFTA well over the years, ensuring stability and engagement from the top levels of the industry, but there is increasing recognition that modifications are needed in order to better reflect the changing world of travel - particularly amidst the disruption wrought by the COVID-19 pandemic. The current document provides for a total of 12 directors, elected in rotation for a two-year period. Each year half of the Board stands for re-election, and every year since 2005 the incumbents, representing most of the major industry consortia and agent networks, have been reinstated unopposed, without even having any outside nominations. That’s because the constitution effectively abrogates the voting power from individual agencies to their head offices. Independent outlets remain part of AFTA but at a concessional rate, while their votes go to their parent organisations under a complex formula which, particularly with the decimation of the retail sector over the last 18 months, has become increasingly less relevant. And Flight Centre’s now depleted retail network also gave it a strong voice based on the voting formula. In 2020, during former AFTA CEO Darren Rudd’s short-lived tenure, there were actually additional
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travelBulletin AUGUST 2021
nominations for the Board for the first time in many years. As became evident in the outcome of last year’s votes - which saw ATAC’s Michelle Emerton and Simon Te Hennepe from TRAVLR garner just 50-odd votes each compared to the 800-plus for the incumbents - there was little point for those not already on the board to nominate. However that didn’t deter even more nominations this year, which saw a total of 10 people put their hand up - the six existing Board members whose positions were being spilled, along with four more. And in what was perhaps a surprise to everyone, one of those newbies actually got up, with The Travel Corporation’s Katrina Barry, head of Contiki and Trafalgar, elected as a Director, replacing CT Partners’ representative David Greenland from Reed & Mackay, who had been appointed to fill a casual vacancy just a few months prior. The ability for a supplier like TTC to nominate was an outcome of the group’s participation in the AFTA Travel Accreditation Scheme (ATAS), which in turn meant it, along with other similar suppliers, was required to be an AFTA member - and consequently have a vote. Barry, who is a highly experienced executive and will contribute significantly to the Federation’s governance, is nevertheless not actually a travel agent, and her appointment has raised some eyebrows. Some have also noted that TTC’s Finance Director, James O’Donnell, became a CATO board member recently, meaning the travel giant now has board-level influence in two of the industry’s key organisations.
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COVER
A TIME TO PAUSE FOR EFFECT It’s almost blasphemous to ask but is there a silver lining to the pandemic for the travel sector? With the industry at a virtual standstill, the pause has given many businesses the opportunity to re-evaluate their ethical responsibilities, such as facing up to the challenge of climate change. ADAM BISHOP reports.
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travelBulletin AUGUST 2021
W
ITH the travel industry facing off against the existential threat of the COVID-19 pandemic, some might forgive companies in the sector for switching to short-term survival mode and allowing loftier moral aspirations to fade until reaching calmer waters. Before the ghastly plague swarmed across the globe in early 2020, sustainability was a hot button topic in travel. Despite the industry’s commitment to the environment garnering fewer headlines over the last 18 months, for many brands the drive to make the sector cleaner and less environmentally damaging is still very much top-ofmind and gaining traction. In fact, the shutdown of
international travel has given many companies the time to hit the pause button and take stock of their position, an opportunity rarely afforded to those operating in this fast-paced industry always on the move. The ongoing impacts of COVID have failed to stop many travel brands from launching new sustainability policies and objectives, industry bodies from committing to tougher group standards and governments from legislating changes geared towards lowering emissions. And while from a whole-of-industry perspective there are still many gains that need to be achieved in order to combat the global threat posed by climate change, the furious work going on underneath the fog of COVID should not be underestimated.
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COVER For The Travel Corporation’s (TTC) CEO Australia, David Hosking, the distressing COVID chapter has brought with it some very powerful lessons which he believes have the capacity to carry the travel industry forward in meaningful ways well after the virus subsides. “If the pandemic has taught us one thing - not just in the travel sector, but for all industries across the world - it’s that everything we do can make a difference,” Hosking believes. “For many of us that has meant taking time out to reflect on things and work out where we can reset and refresh our approach, spanning everything from our family lives to how we do business.” During the shutdown, TTC’s commitment to the planet has “been kicked up a notch”, Hosking says, with the company supporting 55 sustainability projects across 26 countries over that time, focusing on its key pillars of ‘planet, people & wildlife’. The bulk of this activity has been driven by the company’s not-forprofit organisation, The TreadRight Foundation, a joint project between its family of brands to strive for a positive impact on destinations,
people and the climate. To ensure the initiative’s efficacy, back in September 2020 TTC introduced a new proprietary assessment tool called Make Travel Matter (MTM), measuring travel experiences against ethical criteria informed by the United Nations’ set of Sustainable Development Goals. The operator has committed to ensuring that 50% or more of its 1,500-plus itineraries will feature an MTM experience by 2025. “The shutdown has fortified our resolve to make a difference wherever we go, so we’ve continued to develop our Make Travel Matter experiences on all of our trips,” Hosking said. Intrepid is another brand determined to lead the travel sector through the current health crisis and towards the sustainability enlightenment, using the period of hibernation “as a time to continue to take more action”. The company’s Environmental Impact Specialist, Dr Susanne Etti, said Intrepid Travel had always placed an importance on operating responsibly and sustainably since 2005, and that COVID was not going to slow its mission of lighting the way for fellow travel brands.
“
If the pandemic has taught us one thing - not just in the travel sector, but for all industries across the world - it’s that everything we do can make a difference
”
David Hosking, CEO Australia, The Travel Corporation
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travelBulletin AUGUST 2021
Intrepid Travel have released more than 100 new local trips since the beginning of COVID, many of which are decarbonised ©Intrepid Travel
“Over the past 18 months… we’ve released more than 100 new local trips, including many decarbonised itineraries, such as walking and cycling trips,” Etti said. “We also took a number of other actions on sustainability during 2020, firstly we declared a climate emergency as a founding member of Tourism Declares (an organisation supporting tourism businesses to lower emissions) and published our seven-point Climate Commitment Plan. Later in the year, we became the first and only global tour operator with verified, science-based emission targets by the Science Based Targets initiative. This means that we’ve set a carbon emissions reduction target at the pace and scale that science believes is necessary to limit global warming to a maximum of 1.5 degrees Celsius,” she added. Carbon-neutrality is at the core of sustainability efforts for both TTC and Intrepid, with the former recently unveiling a five-year sustainability plan to 11 of the United Nations’ 17 Sustainable Development Goals, putting the business on track to achieve carbon neutrality by 2030 for all
its brands except for youth brand Contiki, which will be 100% carbon neutral even sooner by 2022 - a healthy commercial choice given the heightened sense of urgency among millennial travellers. Meanwhile Intrepid continues to be the ultimate sustainability trendsetter in the travel space. Not content with attaining net zero emissions, the operator is now locking its sights on achieving carbon negativity status. “Based on the facts we know today, we would be lying to ourselves if we were to continue as though being carbonneutral is enough for the travel industry; not only is the climate crisis leading to extreme weather events that threaten people and wildlife the world over, but it is a significant threat to our business,” Intrepid’s Susanne Etti warned. “Many of the destinations we love may be destroyed by drought, fire, or other weather events over the next decade.” Detailed in its seven-point climate plan, Intrepid has committed to transitioning to 100% renewable energy on its trips by 2030 and expanding its carbon offset program to include 125% of its emissions. But while operators on the ground continue to forge ahead with sustainability plans, airlines have arguably come in for more criticism than any other travel vertical. According to The International Coalition for Sustainable Aviation (ICSA), the aviation sector accounts for 4.9% of the total warming impact on the planet and is a top ten global emitter at around 2% of all human-induced CO2 output. The global NGO has been vocal in its stance that current policy measures and technologies in the industry are “inadequate” to fully decarbonise the sector by 2050, predicting a “dramatic rise” in emissions by the middle of the
The Travel Corporation is supporting 55 sustainability projects across 26 countries, focusing on its key pillars of planet, people & wildlife ©The Travel Corporation
century at the current trajectory. Only a few weeks ago, the European Commission announced a raft of policy proposals designed to achieve an EU goal of becoming carbon neutral by 2050, among them a polarising jet fuel tax plan to entice the sector toward quicker change. If approved, the measure would likely see the prices of air tickets pushed up, a business reality European Commission President Ursula von der Leyen believes is necessary if citizens want to “choose a better, healthier and more prosperous way for the future”.
“
...we would be lying to ourselves if we were to continue as though being carbon-neutral is enough for the travel industry...
”
Dr Susanne Etti, Environmental Impact Specialist, Intrepid Travel
But for the International Air Transport Association’s Director General Willie Walsh, the proposal
is “counter-productive” to the goal of sustainable aviation. “Aviation is committed to decarbonisation as a global industry, we don’t need persuading, or punitive measures like taxes to motivate change,” he argues. “In fact, taxes siphon money from the industry that could support emissions-reducing investments in fleet renewal and clean technologies. To reduce emissions, we need governments to implement a constructive policy framework that, most immediately, focuses on production incentives for sustainable aviation fuels,” Walsh added. For its part, Qantas inked a wide-ranging strategic deal on sustainability with BP in January, an agreement it believes will enable the carrier to collaborate on projects including advanced sustainable fuels, decarbonisation advocacy, renewable power, carbon management and emerging technologies. “While the COVID crisis has compelled us to make many changes across the business, one thing that hasn’t changed is our commitment to minimising the impact we have on the environment,” Qantas Group Executive Government, Industry and
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COVER Images left to right: KLM has committed to purchasing 75,000 tonnes of alternative fuel a year from a local plant in Amsterdam. The French Government has recently introduced legislation to ban short-haul flights in exchange for using high-speed rail.
Sustainability Andrew Parker said. “Even though we have been flying a lot less, we’ve actually seen the same proportion of customers choosing to offset their domestic travel during the pandemic - showing that this issue remains top-of-mind for people. The Qantas Group has set some ambitious targets to be net carbon neutral by 2050 and offsetting emissions is a big part of that in the next few years.” Australia’s national carrier is by
“
Even though we have been flying a lot less, we’ve actually seen the same proportion of customers choosing to offset their domestic travel during the pandemic - showing that this issue remains top-of-mind…
”
Andrew Parker, Group Executive Government, Industry and Sustainability, Qantas
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no means the only airline making this shift towards renewables, with Korean Air last month partnering with petroleum company Hyundai Oilbank to adopt the use of more sustainable aviation fuel, United Airlines recently making a large quantity purchase of biofuel and KLM committing to 75,000 tonnes of alternative fuel a year from a local plant in Amsterdam, to name just a few. But persuading airlines to chase lower emissions targets is only part of the overall solution to lower travellers’ carbon footprint, a point the French Government made clear earlier this year when its legislators moved forward with plans to limit short-haul flights in exchange for high-speed rail on select routes. Part of a broader climate push by the country to reduce carbon emissions by 40% in 2030 from a 1990 baseline, the French Government opted to proceed with a ban on shorter flights from Orly Airport to Nantes and Bordeaux among others. The decision is part of a wider trend in Europe which has already seen Austrian Airlines replace flights between Vienna and Salzburg with a rail alternative in a bid to meet its environmental obligations, and Lufthansa scrap
its popular 138km Munich to Nuremberg route for a coach service instead. This approach to air travel is starting to be pondered by operators as well, with Intrepid confirming to travelBulletin a review of its top 50 trips globally is currently underway with a view to replacing flights under 90 minutes with lower carbon alternatives such as fast trains for itineraries in China. The battle to reduce emissions also rages out to sea, with many cruise lines using the COVID pause to reinforce their commitment to sustainable sailing. Leading from the front in this area is the Norwaybased expedition line Hurtigruten, which has flagged the introduction of several green initiatives over the next four years despite the obvious challenges posed by COVID-19. “COVID has challenged some of the progressive practices we have in place as we need to meet certain operational procedures - less shared items for example which can lead to more packaging on board - we don’t like it and we will continue to seek out solutions that are supported by our health professionals as we are determined safe operating practices cannot be an excuse for dropping the ball
on sustainability commitments,” the company’s Managing Director, VP Sales & Marketing, Asia-Pacific Damian Perry said. “Shutdowns, regulations and operating protocols may have taken the wind out of the sails, and it is understandable as many organisations face numerous challenges, but we are fortunate that it remains a key focus and remains resourced and
“
...we are determined safe operating practices cannot be an excuse for dropping the ball on sustainability commitments
”
Damian Perry, Managing Director, VP Sales & Marketing, Asia-Pacific, Hurtigruten
supported. We are in fact seeing more positions come on board in our business to assist with our sustainability journey,” Perry added. Moving forward, Hurtigruten said it remains committed to its ban on single-use plastics, advocating for the industry to eliminate heavy fuels and will continue to push the boundaries of testing innovative low emission alternatives for cruising. Meanwhile Norwegian Cruise Line (NCL) has used the shutdown as an opportunity to unveil its long-term strategy towards carbon neutrality. The cruise line mapped out a plan in June which included a commitment to reduce its carbon intensity through more fuel-efficient ships, an increased investment in alternative fuels and the implementation
of a voluntary carbon offset scheme. The latter goal will involve NCL purchasing carbon credits to offset three million metric tonnes of CO2 emissions over the next three years, with purchases expected to ramp up in future years to reach the goal of carbon neutrality. “Despite the pandemic’s unprecedented headwinds, we have never wavered on our commitment to drive a positive impact on society and the environment through our global sustainability program,” NCL’s CEO Frank Del Rio said last month. Major player Carnival, which has battled some highly publicised environmental issues in the past, also continues on its path to making amends for past indiscretions with several new sustainability areas of focus. The headline target is a commitment to become a carbon neutral operation by 2050 and achieve a 40% reduction in carbon rate per available lower berth day by 2030, relative to a 2008 baseline. The cruise line also flagged plans to expand alternative fuels strategy
across its liquefied natural gas (LNG) program and battery, fuel cell and biofuel capabilities, as well as deliver a 50% reduction in absolute air emissions of particulate matter by 2030 relative to a 2015 baseline. While all of these policy documents certainly sound like progress, the question is inevitably asked, ‘do these measures go far enough?’ As Intrepid’s Susanne Etti rightly points out, Australia’s tourism sector has more on the line than most countries around the world given its abundance of unique biodiversity. “Australian travel and tourism businesses are on the forefront of the climate disaster - particularly after the devastating Black Summer bushfires, the declining health of the Great Barrier Reef and the loss of native wildlife and biodiversity,” she argues. “It is up to each of us to play a role - we cannot wait for governments - we can also advocate, lobby and reach out to local representatives to push for change.”
Cruise lines including Carnival Cruise Line and Norwegian Cruise Line are focused on reducing their emissions through fuel efficient ships, purchasing carbon credits and using LPG and biofuels.
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CRUISE
AUSTRALIA IS COMING LAST By Myles Stedman AUSTRALIA is not used to coming last in the water, as the country’s swim team proved last month at the Olympics, but it certainly is when it comes to cruising. Just two years ago, Australia was lauded as the fastest-growing cruise market in the world, but the country has now slipped right to the back of the pack, upon Canada’s joining of the global cruise comeback mid-last month. Ottawa announced it had brought forward the end of the cruise industry’s suspension to November, in stark contrast to Australia, which seems only capable of pushing its postponement further out. The decision was made based partly on the progress made in Canada’s rollout of its national coronavirus vaccination program, which is now open to everyone over the age of 12. As he has the unenviable task of doing, Cruise Lines International Association Managing Director Australasia Joel Katz once again raised the need for a similar detailed plan for cruising’s revival domestically. “Like Australia, Canada has taken a very conservative and risk-averse approach to cruising, but they’ve worked hard with industry to develop a detailed pathway towards resumption and economic recovery,” Katz said. “By contrast, the Australian Government has made no progress towards establishing a framework for future cruise operations, despite the availability of comprehensive new health protocols at the international level.”
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VIKING MARS HEADS DOWN UNDER
“
We can walk and chew gum at the same time...cruising is a critical part of our economy, let’s start to get it up and running
”
Warren Enstch MP, Federal Member for Leichhardt
“As Canada has recognised, it will take months of careful planning to revive cruise tourism.” Unfortunately, the Australian Government seems to have offered little thought toward an industry longperceived as conditionally volatile, even in peacetime. However, in a glimmer of hope, it appears the industry’s constant barrage of SOSs has finally cut through, with Federal Member for Leichhardt Warren Entsch recognising the benefit his constistency draws from cruising, by pulling together parliamentary support for a restart. A function organised by Entsch and Carnival Corporation saw a conga-line of high-profile MPs join the cause, including Angie Bell, Matt Canavan, George Christensen, Jason Falinski, Hollie Hughes, Bob Katter, Andrew Laming, Kristy McBain, Dave Sharma, Zali Steggall, Phil Thompson, Ross Vasta, Terry Young, and Trent Zimmerman. “What we’re endeavouring to do is to get the decision-makers within government to sit down with the decision-makers in the cruise industry, as we’ve seen happen with the CEOs of Virgin and Qantas,” Entsch explained. “We can walk and chew gum at the same time... cruising is a critical part of our economy, let’s start to get it up and running.” Hopes may have been dashed when Federal Minister for Tourism Dan Tehan sent Entsch a lifeless reply, highlighting little more than the Government’s awareness of the problem, but sometimes, all it takes is one parliamentarian to be aware of the situation to generate change – and cruise now has almost 20 on board its ship.
VIKING’S newest ocean ship Viking Mars, which recently floated out at Fincantieri’s Ancona shipyard, will embark on voyages in Australia following her maiden season. The 930-guest Mars is scheduled to debut early next year and will spend her maiden season sailing itineraries in the Mediterranean and Northern Europe, before embarking on voyages in Australia and Asia.
Mars will join Viking Orion, which in the coming seasons will sail from Sydney and Melbourne to New Zealand on a nine-port, 15-day journey. Orion has Australian dates planned from 2022-2024 departing from Sydney; at this stage, it is not clear whether Mars will join her from the New South Wales capital, or will homeport from elsewhere in the country. The United Kingdom’s Countess of Carnarvon will be Godmother to Mars, an
Viking will have two ships in Australia at the same time ©Viking
honour which will build upon the longstanding relationship between Viking and the Carnarvon family. Since 2013, Viking has offered guests a variety of ways to experience Highclere Castle, the home of the Carnarvon family, internationally known as the main location for the historical drama series Downton Abbey. “Lady Carnarvon has done so much to help Viking, including opening her home almost weekly for our guests to experience life At Home at Highclere on Viking. TV,” Executive Vice President Karine Hagen explained. “We are delighted to celebrate this important milestone, and we look forward to welcoming Viking Mars to our award-winning ocean fleet next year.”
The cancellations continue CARNIVAL Corporation’s P&O Cruises Australia and Princess Cruises brands have extended their cruising pause in the country until mid-December, as the first cabs off the cancellation rank last month. P&O Australia cancelled its cruise holidays through to 17 December, and Princess through to 19 December, with both brands citing ongoing uncertainty around a pathway to resumption in the country. Just a few days later they were joined by Aurora Expeditions, although the phrasing used by
Chief Executive Officer Monique Ponfoort suggested an air of confidence her cruise line would be able to operate at some stage this season, with the move described as a “postponement”. A day later, Celebrity Cruises cancelled Celebrity Eclipse’s sailings in Australia through to the end of the year, and more recently the line scrapped all of Eclipse’s sailings for the whole season, along with Celebrity Infinity and Celebrity Solstice sailings due to take place Down Under this summer. The cruise line joined the
Carnival Corporation brands, suggesting the situation in the region remains too uncertain, due to an ongoing lack of clarity around the resumption of cruise. Oceania Cruises has now withdrawn its sailings from Australian waters due to the country’s ongoing border closure policies, cancelling all the way through to February 2022, while Viking Cruises also canned its planed Australian season on board Viking Orion, perhaps dashing any confidence the local industry had of a cruise restart this year.
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CRUISE Cruise360 off CRUISE Lines International Association’s (CLIA) Cruise360 Australasia conference will not go ahead next month, due to the coronavirus outbreak in Sydney. Cruise360 has been postponed until “a more suitable time”, according to CLIA Managing Director Australasia Joel Katz, with industry leaders to instead come together online on 27 Aug. Key issues and important updates will still be shared with CLIA’s travel advisor community.
Kara Glamore new Carnival VP CARNIVAL Cruise Line (CCL) has announced outgoing Vice President Jennifer Vandekreeke will be succeeded by Kara Glamore. Formerly Director of Marketing & PR, Glamore will be supported by Anton Loeb in the new role of Senior Director Sales & Marketing. Glamore joined the CCL team in 2019 after working for Expedia.
Aqua launches fourth ship AQUA Expeditions has launched a new 20-suite luxury river vessel, Aqua Nera, which successfully embarked on its maiden voyage in the remote Peruvian Amazon early last month. Guests will sail on three-, fourand seven-night explorations into the depths of the world’s largest tropical rainforest in Nera’s maiden season, an exclusive journey hosted by the company’s Chief Executive Officer and founder, Francesco Galli Zugaro. The itineraries have been tailored to include once-in-alifetime experiences, such as encounters with exotic wildlife.
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CLIA VIEW
Joel Katz, Managing Director CLIA Australasia
AUSTRALASIA NOW ALONE WITHOUT A PLAN IN THE past month some of the world’s largest and most important cruise regions have reopened their ports and begun careful steps towards economic recovery. They include the US, where ships have resumed sailing to the Caribbean and Alaska with strict health protocols in place. Even Canada – one of the most cautious countries when it comes to cruising – has brought forward the end of its cruise suspension to November. This leaves Australia and New Zealand alone in the world as the only major cruise region where governments have made no progress towards resumption. After months of hard work by CLIA and cruise lines, our governments have still yet to commit to a detailed plan for cruising’s future. This is devastating for travel agents and thousands of other local workers. But in recent weeks, politicians have shown they are increasingly aware of this impact and have begun acknowledging the need to
move forward. CLIA’s Ready, Set, Sail campaign has resulted in more than 40,000 emails to Australian MPs and we’re now seeing politicians publicly acknowledge the importance of planning a cruise revival. It’s clear we’re being heard, but we need to maintain the momentum. The latest phase of our Ready, Set, Sail campaign urges our cruise community to arrange meetings with local MPs. The aim is to put politicians in front of the very people whose lives are impacted by the cruise suspension. We’ve created a MEET YOUR MP toolkit to help you set up and manage a meeting with you local MP. This will help reinforce the messages CLIA and cruise lines are making in our own discussions, while at the same time showing the personal side to the 18,000 people whose jobs depend on cruising. To get involved, visit www.cruising.org.au and look for the Meet Your MP banner.
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