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CONTENTS
14
10
18
Keep your clients engaged and planning their next trip with keep dreaming...
COVER STORY
MONTHLY
COLUMNS
14 Waiting for the sunrise
02 State of the industry
02 From the publisher
08 Issues and trends
06 Steve Jones
18 Cruise
09 AFTA View
There are faint glimmers of hope for recovery after coronavirus, if we can weather the storm, writes Bruce Piper
This month’s contributors
A weekly e-magazine with destination features, puzzles and more, to inspire your clients’ next escape. Plus a toolkit each week to help promote the magazine, inlcuding social media images, ads and more.
19 CLIA View
Steve Jones, Joel Katz, Jayson Westbury, Simla Sooboodoo
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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Editorial team – Myles Stedman, Jasmine Hanna, Adam Bishop, Nick O’Donoghue
ADVERTISING National Sales Manager Lisa Maroun Ph: 0405 132 575 or 02 8007 6760 lisa.maroun@travelbulletin.com.au
Suite 1, Level 2, 64 Talavera Rd Macquarie Park NSW 2113 Australia PO Box 1010 Epping NSW 1710 Australia Tel: 1300 799 220 (+61 2 8007 6760
ART Design – Sarah Beyer
www.travelbulletin.com.au
Publishing Director – Jenny Piper
travelBulletin is part of the Business Publishing Group family of publications
travelBulletin MAY 2020
1
STATE OF THE INDUSTRY
From the publisher Bruce Piper
THE cruise industry has continued to be in the glare of the mainstream media spotlight over the last month. No sooner had the beleaguered Ruby Princess sailed away from its new-found friends in the Port Kembla, NSW community than Royal Caribbean hit the headlines, via a class action over the White Island volcano tragedy last year. As I’ve written before, in this COVID-19 situation where we feel we have lost control, society is looking for someone to blame and unfortunately cruising is a convenient whipping-boy. However unlike the host of media armchair experts who have sprung up around the cruising crisis, a more measured response to the situation came from someone who really knows what he’s talking about. Christopher Rynd, the highly respected and now-retired former Cunard, P&O and Princess Cruises captain, noted his pride in the vessels on which he worked and the role the cruise industry played in providing holidays, contributing to the global tourism economy – and also “helping our neighbours”. “When Cyclone Pam devastated Vanuatu shortly after my ship’s visit in 2015, our passengers and crew mustered a huge cash donation, while another cruise ship sailed to the islands as a first responder,” Rynd wrote in an editorial in Maritime Executive magazine. He noted that neither ship was registered in Australia, but acted as
good citizens towards those they saw as their neighbours. “Where are these ships now? Ordered out of Australian waters. One [P&O’s Pacific Explorer] based in Australia for a decade, has no COVID-19 illness onboard,” he said. Rynd comprehensively debunked claims about foreign-flagged ships operating to lower standards, with crew conditions set by international conventions while health, safety, security and environment standards are set by the International Maritime Organization. But cruise companies set themselves even higher standards because of their high profile and “a keen appreciation of risk,” he said. Rynd said the common and contagious norovirus has three times the incidence ashore than on cruise ships, while the cruise sector had successfully worked over the years to counter other health threats such as SARS, MERS, H1N1 influenza and Legionnaires disease. “All contrary to what has been seen recently in popular media – in fact life afloat has been healthier than ashore,” he said. Attitudes to public health, practices and procedures are sure to change due to coronavirus, and the cruise industry will clearly be in the forefront, Rynd added. “When social gathering is once again acceptable and protocols are in place, cruising will be ready,” he said – a sentiment which should be embraced by everyone in travel.
Alatus corporate EXPRESS Travel Group isn’t sitting on its hands through the COVID-19 crisis, with CEO Tom Manwaring last month inviting travel management companies (TMCs) to join a “new generation corporate membership group”. Alatus Corporate (alatus is Latin for “wings”) promises to be a collective of like-minded independent corporate agencies, leveraging Express technology to elevate their service delivery and meet the challenges of the post-COVID world. Manwaring said the initiative was the outcome of 12 months planning, with input from the group’s existing corporate-focused members as well as agents in the NZ-based First Travel Group network. “We look to include Alatus in financial year supplier contract negotiations with and for members,” he said, adding that the group was currently looking to enlist founding members with a view to being fully operational by 1 July.
AFTA defends agents
IN BRIEF
2
Chargeback scheme cut THE AFTA Chargeback Scheme (ACS) has become an unfortunate victim of the COVID-19 crisis, with AFTA announcing it would be placed into “hibernation” from the start of this month. The scheme, which protects participating travel agents from credit card chargeback claims by clients in the event of the insolvency of a supplier, is funded by a small surcharge on transactions – and amid the coronavirus shutdowns it simply is not viable. No new travel arrangements are protected from 1 May 2020, but all existing bookings are protected. Members are being urged to promptly submit claims for the 2019/20
travelBulletin MAY 2020
protection year, with a sunset date of 31 December this year. Claims will be assessed in January 2021, and in accordance with the ACS terms and conditions may be paid out proportionally if the total exceeds the scheme’s coverage. “These decisions have not been taken lightly, and we understand the disappointment that members must fell at this time,” said AFTA CEO Jayson Westbury.
STA Travel’s $14m MultiFLEX fine A YEAR-LONG prosecution process by the Australian Competition and Consumer Commission (ACCC) wrapped up last month, with STA Travel ordered to pay $14 million
TRAVELMANAGERS TEES OFF
in penalties for misleading customers about its MultiFLEX pass product. Advertising for the pass claimed those who purchased the add-on would be able to change the dates of flights booked without any fees, with the ACCC finding that in some cases clients had even been charged for changes where no airline fees had been imposed. STA estimated it sold an average of 16,000 MultlFLEX pass products each year between 2015 and 2019, with the company admitting liability in joint submissions to the Federal Court.
CONCERTED negative mainstream media reporting incorrectly blaming travel agents for issues around COVID-19 refunds has prompted AFTA to ramp up an information campaign for journalists in Australia’s TV, print and radio newsrooms. A full media briefing document has been circulated, titled “The Facts on Travel Agents and Refunds,” with AFTA CEO Jayson Westbury saying it was an extension of proactive work done to correct stories on a case by case basis. “All travel agents across
IT SEEMS like a lifetime ago, but just two weeks before the COVID-19 lockdowns TravelManagers hosted its sixth annual charity golf tournament. The event was organised by the group’s Business Partnership Manager for Victoria and Tasmania, Kellie Browning, and took place at Victoria’s scenic Mornington Golf Club. With the support of key industry partners the golf day raised a whopping $25,000 for the Love Your Sister cancer research charity, bringing the total contribution over the last four years to $75,000.
“
The Air New Zealand which emerges from COVID19 will be a much smaller airline and could take years to get back to its former size
”
Greg Foran, CEO, Air New Zealand
Australia should know that AFTA is doing all that we can to hold strong on a positive media strategy,” he said. “But we are not able to control stories that are released by some media outlets at this time,” he said, adding that AFTA had been careful not to “give oxygen to stories or outlets where there is a clear agenda to misrepresent a situation”.
Air NZ delays New York AIR New Zealand has been forced to significantly adjust its international ambitions due to the coronavirus downturn, with the carrier regretfully announcing the deferral of its planned non-stop services from Auckland to New York for at least 12 months. Originally set to debut in October this year, the postponement came along with other route cut announcements, including the cessation of NZ’s Buenos Aires flights and the accelerated closure of the airline’s London base and LAX-LHR flights. “It’s deeply disappointing to be in this position,” said Air NZ’s Chief Networks, Strategy and Alliances Officer, Nick Judd. “Our people have
worked tenaciously over the years to build these markets and excitement was growing for our non-stop New York flight. However the effects of COVID-19 continue to bite; we expect most countries to take a cautious approach to international travel in the next year and we have to be pragmatic,” he added. NZ CEO Greg Foran has had to preside over thousands of job cuts at the airline, and warned that “the Air New Zealand which emerges from COVID-19 will be a much smaller airline and could take years to get back to its former size,” confirming current plans to be a domestic carrier, with limited international flights to keep supply lines open, “for the foreseeable future”.
FCTG raises $700m FLIGHT Centre Travel Group will close more than 40% of its Australian retail stores as part of radical surgery to help the company survive plummeting demand due to COVID-19. The plan was announced alongside a $700 Continues over page
travelBulletin MAY 2020
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STATE OF THE INDUSTRY
20 Apr VA into administration 21 Apr VA “vital role” in recovery 21 Apr Cruise health framework 22 Apr IATA urges confidence boost 22 Apr Air NZ domestic reboot 23 Apr ACS placed into hibernation 23 Apr RBA chargeback breakthrough 23 Apr Air Mauritius collapses 24 Apr Air NZ to delay New York 24 Apr Sunset for Horizons Travel 24 Apr STA Travel to pay $14m in penalties for misleading ads 27 Apr Mayfair slows Dunk project 27 Apr FCTG revises canx policy 28 Apr App key to recovery - AFTA 28 Apr Spending curve turning?
4
travelBulletin MAY 2020
125.1 92.5 59.8 59.1 55.7 40.0 34.9 32.3 27.0 24.4 785.4
+5.5%
%
+ 1.
Dec-17
*Percentage points difference
+3 .6% Nov-17
Growth Yr to Yr to Growth % Feb 19 Feb 20 % INBOUND OUTBOUND 4.50m 4.26m -3.0 61.04m 61.25m +0.3 5.07bn 4.92bn -2.9 71.15bn 71.36bn +0.3 6.56bn 6.52bn -0.6 88.42bn 88.22bn -0.2 77.3 75.5 +1.8* 80.5 80.9 +0.4* 48.7 48.2 -0.9 629.5 634.2 +0.7
Oct-17
700
Total pax carried Revenue pax km (RPK) Avail seat kms (ASK) Load factor (%) Aircraft trips (000)
Feb 20
Sep-17
Feb 19
Aug-17
THERE were no passengers on board the P&O Cruises Australia fleet – and the ships themselves have been banished from local waters – but that didn’t stop the onboard teams from commemorating ANZAC Day last month. Dawn services were held aboard Pacific Explorer, Pacific Dawn and Pacific Aria which are all currently in Asian waters, with cruise director Zoltina-J MedwikDaley saying the vessels wanted to continue with the onboard tradition longcherished by P&O’s Aussie and Kiwi guests.
124.2 123.3 83.6 36.6 43.7 39.8 28.4 41.2 25.0 21.2 928.5
% change original Feb 19/ Feb 20 +8.2 +17.3 +4.0 +3.7 +11.1 -13.6 +30.9 -9.9 +6.8 +9.4 +5.3
.4 %
20 Apr WA Govt appoints FCM
2 .4
February 2020
950
P&O CELEBRATES ANZAC DAY
Original (000)
+2
20 Apr SYD traffic declines 96%
+1
% +0.8
17 Apr $165m for Qantas, Virgin
84.2% 85.4% 17.3%
DOMESTIC AIR MARKET
1200
16 Apr VA dom flights underwritten by Government 17 Apr Hang on until 2021: Burnes
New Zealand Indonesia USA India Japan China Vietnam Thailand Malaysia Philippines ALL OUTBOUND
+2.1%
16 Apr Feb ABS figured plummet
Arrivals on time Departure on time Cancellations
Jul-17
16 Apr Disruptor hit by collapse
All airlines
82.8% 85.1% 22.7%
Jun-17
15 Apr Travel spending slides more
87.9 84.7 78.3 43.8 37.5 25.0 24.0 23.1 22.0 21.3 685.4
Seasonally adjusted (000)
Source: ABS
May-17
15 Apr Emirates simplifies waivers
US-BASED ENSEMBLE Travel Group, which launched a local operation about five years ago, has announced the closure of its Sydney office. Ensemble was established here under
Virgin Australia
Arrivals on time Departure on time Cancellations
Apr-17
14 Apr See Australia first - minister
117.1 59.1 62.3 38.4 34.4 26.0 32.2 15.1 15.3 19.5 647.0
% change original Feb 19/ Feb 20 -4.7 -0.7 -7.0 -1.7 +15.6 -27.7 -25.3 -4.2 -16.2 -89.7 -26.1
International Passengers Carried (thousands) - December 2015 to December 2017
Mar-17
14 Apr Keep Dreaming with TCW
Ensemble shutdown
Original (000)
.0%
09 Apr Virgin cuts all flights bar one daily SYD-MEL service
Destination
Seasonally adjusted (000)
+3
09 Apr NZ to review visitor levy
Source
ENDED DECEMBER 2017
Feb-17
09 Apr Crystal to close Aus & NZ office
86.1% 87.0% 11.4%
Jan-17
08 Apr Airlines - we need a new strategy
Top 10 destinations, February 2020
Source: ABS
THE successful uptake of the Federal Government’s new COVIDSafe smartphone app could see a significant acceleration of a return to normal travel patterns, according to YEAR AFTA CEO Jayson Westbury. While acknowledging that security Chart I and privacy issues mean adoption of the Bluetooth-based contact tracing 2200 app is a personal matter, he said 1950 “what we want for Australians is the return to normal life, and what 1700 we want for the travel industry is for people to have the freedom to travel”. 1450
Dec-16
08 Apr Webjet opens retail offer
App may speed return
Nov-16
07 Apr Spending slide continues
Oct-16
07 Apr FLT capital raising success
Arrivals on time Departure on time Cancellations
RETURNS
Top 10 destinations, February 2020
New Zealand UK USA Japan India Hong Kong Singapore Canada Germany China ALL INBOUND
Qantas 80.6% 78.5% 26.8%
Sep-16
06 Apr FCTG cuts retail footprint
Jetstar Arrivals on time Departure on time Cancellations
Jul-16
03 Apr Ensemble leaving ANZ
Jun-16
03 Apr Kakadu COVID-19 closure
May-16
03 Apr EK and EY resuming flights
Apr-16
02 Apr Aviation emissions halved
Mar-16
02 Apr Strong support for WEB
Feb-16
01 Apr Rex to continue in Qld
ARRIVALS
March 2020
Jan-16
01 Apr AFTA raising awareness
DOMESTIC ON TIME PERFORMANCE
Dec-15
HEADLINES
million capital raising, with the company telling investors the changes would help it save about $1.9 billion in annual costs. Measures include the closure of the Universal Traveller brand (formerly known as Student Flights) and more than $200 million in one-off costs, the majority relating to staff redundancies. MD Graham Turner said the coronavirus situation was “without question the most challenging period we have encountered in our 30 years of business,” warning it was inevitable that some businesses in the industry would fail. However having raised additional liquidity and reduced costs, Flight Centre was “well placed to weather a prolonged downturn...and then take advantage of the significant opportunities that will arise once conditions normalise,” Turner added.
DATA ROOM
the leadership of Trish Shepherd, but more recently had been headed up by Katy Muyt along with two other staff. The group’s New York-based chief, David Harris, cited the coronavirus downturn for the move, saying “due to the current difficulties our industry is facing globally we regretfully have had to make the difficult business decision to discontinue our operations in the market”. Local Ensemble members had included Phil Hoffmann Travel, TravelManagers and several other CT Partners agencies.
Aug-16
Continues from previous page
-0.4%
2%
+1.8%
Source: BITRE
Chart II
INTERNATIONAL AIR MARKET SHARE
International Passengers by Major Airlines - Year ended December 2017
International passengers by major airline – year ended January 2020 Qantas Airways, 17.4% Qantas Airways,
Others, 32.2%
Jetstar, 8.7%9.1% Jetstar,
Emirates, Singapore Airlines,8.3% 8.3%
Malaysia Airlines, 2.7% China Southern Airlines, 3.1% Qatar Airways, 3.0% Etihad Airways, 3.2%
Singapore Emirates, 6.8% Airlines, 8.1%
AirAsia X, 4.0% China Southern Airlines, 3.1%
Cathay Pacific Air New Cathay Pacific Air New Zealand, 6.7% Airways, 4.5% Zealand, 6.6% Airways, 4.6% Australia, 6.7% VirginVirgin Australia, 6.0% Source: BITRE
Table I Foreign
Top 10 city pairs, January 2020
City pair
16.4%
Others, 30.7%
INTERNATIONAL AIR ROUTES
Singapore-Melbourne Auckland-Sydney Singapore-Sydney Auckland-Melbourne Hong Kong-Sydney Singapore-Perth 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 % of total % change YE Jan 20 20/19 1,629,901 3.8 +3.6 1,597,351 3.8 +1.8 1,549,707 3.6 +2.4 1,251,794 2.9 -0.4 1,195,335 2.8 +3.0 1,145,192 2.7 +2.1 970,074 2.3 +12.4 956,340 2.2 +1.2 910,332 2.1 +5.5 896,636 2.1 +0.8 12,102,662 28.4 +2.9 30,486,262 71.6 +1.6 42,588,924 100.0 +2.0
Source: BITRE
International Passengers by Uplift/Discharge City Pairs Australian
Passengers YE Jan 19 1,573,943 1,569,064 1,513,765 1,256,664 1,160,554 1,122,013 863,357 945,219 862,805 889,219 11,756,603 30,006,381 41,762,984
travelBulletin MAY 2020
% of
% Change
5
STATE OF THE INDUSTRY
9,119.2
-1.4
4,822.5
4,812.8
-0.2
3,581.2
3,604.4
+0.6
2,710.2
2,739.1
+1.1
2,505.7
2,531.2
+1.0
2,120.6
2,113.7
-0.3
2,066.2
2,107.0
+2.0
1,898.8 1,711.4 1,660.4 61,037.2
1,868.1 1,690.8 1,665.8 61,247.9
-1.6 -1.2 +0.3 +0.3
Source: BITRE
-20
-40
-60
-80
-100
16 M ar
9,247.1
AUSTRALIAN AIRPORTS
International passengers through Australia’s major international airports, January 2020 City pair
-7 -35 -52 -72 -89 -92 -96 -96
23 M ar 30 M ar 06 A pr 06 A pr
Brisbane-Sydney BrisbaneMelbourne Gold CoastSydney AdelaideMelbourne Melbourne-Perth Gold CoastMelbourne Adelaide-Sydney Perth-Sydney Hobart-Melbourne ALL CITY PAIRS
0
2
02 M ar
MelbourneSydney
Passengers Passengers % change YE Feb 19 YE Feb 20 (000) (000)
09 M ar
City pair
AUSTRALIAN CONSUMER SPEND ON TRAVEL: NEWS CORP AUSTRALIA INDEX 17 F eb
Top 10 domestic city pairs, February 2020
24 F eb
MAIN DOMESTIC ROUTES
Passengers YE Jan 19 Sydney 16,832,553 Melbourne 11,273,247 Brisbane 6,153,123 Perth 4,367,100 Adelaide 1,027,853 Gold Coast 1,017,756 Cairns 662,657 Avalon (a) 69,956 Darwin 226,043 Canberra 92,665 Sunshine Coast (b) 14,303 Port Hedland 8,554 Newcastle (c) 5,593 Norfolk Island (d) .. Townsville (e) 11,581 ALL AIRPORTS 41,762,984
Passengers YE Jan 20 16,887,071 11,344,636 6,456,259 4,383,851 1,138,623 944,722 641,342 419,073 258,387 84,038 13,084 9,037 7,361 1,440 .. 42,588,924
% of total % change 19/18 39.7 +0.3 26.6 +0.6 15.2 +4.9 10.3 +0.4 2.7 +10.8 2.2 -7.2 1.5 -3.2 1.0 +499.1 0.6 +14.3 0.2 -9.3 0.0 -8.5 0.0 +5.6 0.0 +31.6 0.0 .. .. .. 100.0 +2.0
TRAVEL INDUSTRY IN ISOLATION Despite Government lockdowns meaning most of us are working from home, that hasn’t stopped the travel industry from continuing to stay in contact with colleagues and clients and have some fun, despite the situation.
Globus Family of Brands has regular photo challenges.
(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
Steve Jones’ Say SO WHAT does the remainder of this year hold in store for would-be travellers and the travel industry? We can all agree it will be painful. Beyond that, well the consequences of this wretched virus are many and varied, and so hard to predict. Alas, they are also likely to be long-lasting. Even as the spread of COVID19 eases locally – a welcome trajectory that could offer respite for the domestic sector – it is events overseas that will determine how long Australia’s outbound industry remains paralysed. There are
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travelBulletin MAY 2020
glimmers here too, with several countries beginning to ease restrictions. But it will be a slow, tentative process. Fundamentally, the future is clouded with uncertainty. Medical experts talk of a possible second wave of COVID. And even as infections slow, at what point will governments be brave enough to re-open borders and allow an influx of international visitors? Will social distancing become the norm? If so, the implications for cruise companies and airlines will be enormous. Much has been made of the pent-up demand that will theoretically be unleashed once borders re-open. It’s possible, and goodness knows we’ll all need a long holiday after this. Yet increasingly it feels like wishful thinking. The desire to travel is not in question. But if COVID remains a long term threat, that could wreck public confidence and slow the recovery, particularly given the economic gloom. Furthermore, international flight schedules won’t suddenly pick up where they left off. And if social distancing does remain, planes will be forced to fly half empty. With limited international capacity, potentially fewer airlines, and a desperate need to generate income, what will that do for pricing? My
“
The industry is a resilient one...yet as true as this may be, the industry is only ever as resilient as the travelling public
”
d Viking Cruises has ha f. a meatball cook-of
fear is a return to the days where only the wealthy can afford to travel. The more positive counter argument is that suppliers, airlines included, will have to stimulate the market with attractive pricing. Either scenario is possible. As for ocean cruising, Silversea UK and Ireland boss Peter Shanks probably had it right by suggesting it could be three to five years before the sector fully recovers. Avid cruisers may return relatively quickly, but it’s hard to see first-timers being tempted anytime soon. Port cities meanwhile, so quick to pocket revenue generated by visiting ships, should hang their heads in collective shame at the way they shunned cruise passengers and crew. However, it’s positive action that is needed, not recrimination. CLIA Australia must get on the front foot and somehow redress the alarming negativity. If we’re looking for positives in these gravely troubling times it is the opportunity for domestic tourism. That may be scant consolation for the majority of agents who rely on outbound travel. But at least it provides a sales opportunity for those agile enough to refocus. Good luck to everyone.
Solomon Islands Tourism showed their solidarity with the Australian travel industry.
Hawaiian Airline s Australian reservations agent Anne Paulo was still helping agents with rebooking in isolation.
Business Publishing Group has makes sure to celebrate colleagues birthday’s with Zoom morning tea and renditions of ‘Happy Birthday’.
travelBulletin MAY 2020
7
ISSUES & TRENDS
VIRGIN AUSTRALIA INTO ADMINISTRATION THE coronacrisis claimed a major corporate victim last month when the directors of Virgin Australia were forced to appoint voluntary administrators, having unsuccessfully sought Federal Government intervention in the form of a $1.4 billion loan and been unable to access additional capital from the airline’s existing shareholders. The move came after the airline’s shares had been suspended from trading for several days, as the Virgin Australia team undertook ongoing discussions relating to financial assistance and restructuring alternatives. Ultimately those discussions were unfruitful, with the Board appointing Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes of Deloitte as voluntary administrators of the company. The appointment covered the entities operating Virgin Australia and Tigerair Australia’s international and domestic services – but interestingly excluded the
Velocity Frequent Flyer business which, while 100% owned by the group, was not placed into administration. Virgin Australia had already closed down almost all of its operations, reducing its domestic services to just six weekly flights between Sydney and Melbourne. In the days prior to the appointment of administrators, the Federal Government had also announced a $165 million initiative to support the operations of a minimum domestic network, with both Qantas and Virgin Australia participating. This allowed VA to recommence services on 64 routes, and the carrier also continued its Goverment-backed charter work to repatriate Australians stranded abroad due to COVID-19 border closures and flight shutdowns. It’s hoped that a restructuring of Virgin will allow it to re-emerge in a stronger, more viable form. The airline has been weighed down by about $5 billion in
debt, and while competing strongly in the domestic market had struggled to turn a profit for many years. The administrators confirmed that operations would continue under Virgin Australia CEO Paul Scurrah and his management team, and that their intention was to “undertake a process to restructure and refinance the business, and bring it out of administration as soon as possible”. In the lead-up to the appointment of the administrators Virgin had been running a concerted campaign warning of the dangers of a monopoly should it cease operating, and Scurrah continued the rhetoric in the confirmation announcement. “Australia needs a second airline and we are determined to keep flying,” he said. “Virgin Australia will play a vital role in getting the Australian economy back on its feet after the COVID-19 pandemic by ensuring the company has access to competitive and high-quality air travel,” he promised.
SABRE, FARELOGIX DEAL IS OFF AFTER several years of consideration by authorities in the USA and UK, the groundbreaking acquisition of Farelogix by Sabre looks to be right off the table after it was knocked back by Britain’s Competition and Markets Authority. Sabre, which had initially announced the deal with a fanfare in November 2018, has been in a holding pattern awaiting approvals from competition regulators, with the US Department of Justice ultimately lodging a civil lawsuit aiming to block the US$360 million purchase. The deal had been seen as giving Sabre a significant leg-up with the implementation of IATA’s New Distribution Capability (NDC) protocols, with Farelogix technology including its “Airline Commerce Gateway” already enabling airlines to dynamically create and deliver personalised and differentiated fare offers to various sales channels. Just last month the hearts of senior Sabre and Farelogix executives must have leapt Hopes were dashed when a US judge in the just days later when District of Delaware denied the Department of Justice’s the UK regulator case which had claimed the issued its formal deal was anti-competitive – but then those hopes were finding, that the dashed just days later when purchase could the UK regulator issued inhibit innovation its formal finding, that the purchase could inhibit innovation. The Competition and Markets Authority (CMA) found that both companies were heavily involved in enhancing services to better distribute airline ancillary services, and that Sabre would be unlikely to continue the work if the deal was approved. “Fees for certain products might also go up...as a result, airlines, travel agents and UK passengers would be worse off,” the ruling stated. It’s unclear what the next step is, with the CMA ruling out the deal for a ten year period. Sabre’s executive team said they were disappointed in the decision and “will carefully consider our options”.
“ ”
©Virgin Australia
Marriott’s Western Sydney additions MARRIOTT International has announced the signing of two new properties in the Western Sydney suburbs of Auburn and Blacktown, expanding its suburban reach through a partnership with property developers T1 Constructions. The additions include the Courtyard by Marriott Sydney, Auburn and the Four Points by Sheraton Sydney, Blacktown, and are slated to open in 2023 and 2024 respectively. Marriott Senior Director of Hotel Development, Richard Crawford, said the new signings “reflect Marriott International’s strong commitment to the travel and tourism industry here in Australia”. “During these unprecedented times our
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travelBulletin MAY 2020
ongoing goal remains to grow our business and to strengthen our offering in this region,” he said, with the new additions seeing Marriott strategically expanding its footprint into growth corridors outside Australia’s metropolitan areas. The new Auburn property will have 203 guest rooms as well as several signature Courtyard by Marriott amenities including The Bistro all day fast-casual restaurant and the 24/7 Market grab-and-go cafe. Meanwhile Four Points by Sheraton Blacktown is being pitched as ideally located for guests to access the Blue Mountains, the new Sydney Zoo, Raging Waters Sydney water park and the soon to open Western Sydney International Airport.
Four Points by Sheraton, Blacktown ©Marriott International
AFTA VIEW Jayson Westbury, chief executive AFTA
THE past month has been without doubt an absolute shocker for the entire travel industry and it is hard to believe so much can actually happen in such a short period of time. Having said that, for the most of us the past month feels like it has taken forever as we work from home, self-isolate, unpack the wide range of government COVID-19 support packages, deal with cancellations and refunds for clients, rearrange the business, rearrange our lives – it just seems like so much. But, it is now May and if there is one good thing about that, it is that all of these problems become normal. As we progress into our stride of being an industry so dramatically impacted by this virus, but resolved to find a way out, I honestly believe we will find a way forward by starting with the acceptance that the situation we are in is here for a while. Unfortunately, many in the travel industry are hurting more than others in the wider economy, and from AFTA’s perspective we have been working with so many members and industry stakeholders at these very difficult times. One such difficult situation is the necessary change we have made to the AFTA Chargeback Scheme which has gone into a hibernation mode with a hope for it to return in 2021. This remains to be confirmed and will be led somewhat by the travelling circumstances for Australians and if the payment landscape looks the same coming out of COVID-19 as it did going in. Of course, for all the ACS participants the good thing is that transactions that were made prior to 1 May will hold the cover offered and this will remain in place till 31 December. A global pandemic brings so many complex settings and it is clear that nobody at any level across the entire economy planned for such an impact and ACS is not isolated from this challenge. As government and industry start to talk about the road out of COVID-19, one thing that the industry should encourage is downloading the Government’s COVIDSafe app. I have downloaded it and it seems to me that the government is more likely to open up Australia, get people moving and be more willing to consider how and when we will be allowed to travel again based on this app’s functionality. I know that there are mixed views about this app from a privacy and trust perspective and I make no statement as to the choice people make in relation to selecting to downloading it or not. However I would say that if the government does not get its target of 40% of the population downloading it, I suspect we will have a longer time before we see a dramatic lifting of social distancing measures and mass gatherings, and longer time until we see travel restrictions lifted. In addition to this, we need people to be confident to travel and if this app provides results along the lines that have been outlined, perhaps our road out of this becomes a highway than a slow country road.
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ISSUES & TRENDS
GOVERNMENT LENDS A HAND In these unprecedented times, businesses across the economy are suffering, not the least the travel industry. The Federal Government is hoping to keep many businesses propped up with a range of stimulus measures. The bonus cash is welcome news for many, but unpacking what your business is eligible for and how to apply for the subsidies can be hard to follow. Thankfully, Simla Sooboodoo, Founder and CEO of Hands On Journeys and trained CPA Accountant has done an incredible amount of legwork, listening in to seminars and reading through paperwork to provide this summary of stimulus packages.
JobKeeper Subsidy This is $1,500 per fortnight, or $750 per week for each employee and paid to employers. Eligibility conditions apply. It's also not being paid until the start of May, with employers to be reimbursed monthly in arrears. So, there is still no immediate cash relief, with employers expected to self-fund or borrow in the meantime.
ELIGIBLILITY 1. Small Business • Small business need a 30% actual or anticipated turnover drop from the same period last year i.e Jan to Mar 2020 BAS compared to Jan to Mar 2019 BAS • The turnover is your BAS reported revenue, including GST-free, but Australian sales only. • The ATO will consider further info e.g. if a new business, ceased business, or an unusual prior period. • A business that does not meet eligibility now may join JobKeeper in future when it does. 2. Employees • Need to be persons you employed as at 1 March, aged over 16, and includes those since laid off. • Applies to full- and part-time employees, and casuals employed for over 12 months. • All must be Australian residents for tax purposes as at 1 March. • New Zealand visa 444 employees are eligible, but not temporary visas e.g. students or working-holiday. • Each employee must be notified, they can
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only have one primary employer and can’t also get JobSeeker payments. • An employee may continue to earn income from a non-primary employer. 3. Self-Employed • Sole traders, Partnerships, Trusts & Companies may nominate one person for a non-employee payment. • This is in addition to JobKeeper subsidies for any eligible employees. • The non-employee person must have been actively engaged in the business. • The business must have an ABN and revenue up to 12 March, and estimate this has or will fall by 30%. • They can not be entitled to another JobKeeper payment, i.e. as employee or business nominee. • Note a partnership can only nominate one recipient, and a partner cannot be an employee. 4. Decline in Turnover Test • An entity can assess its decline for either a test month or quarter, regardless of its BAS period. • Its 'Projected Turnover' in the test month/quarter is compared to 'Actual Turnover' for the same month/quarter last year. • Exclude input taxed, non business, and export supplies. • Your monthly/quarterly prediction may need updating each fortnight, so staff are not overpaid. • The ATO is required to show some tolerance where estimates fall slightly below 30%. • Record keeping of the estimate basis is
essential to avoid repayments, interest, or penalties.
CALCULATION BASIS • A flat $1,500 per fortnight subsidy applies per employee/nominee. Available from 30 March to 27 September. • The employee must be paid a minimum $1,500 per fortnight (less tax), or their existing wage, whichever is higher. • Business must have paid this for each fortnight before receiving the JobKeeper subsidy. • An employee payment may be in cash or as a fringe benefit or super, if mutually agreed. • The first fortnight was from Monday 30 March to Sunday 12 April. A back payment is possible. • STP (Single Touch Payroll – Link your payroll system with the ATO) will be used to support the claims process, otherwise a manual claim process will apply. • Employees who have been stood down can get the $1,500, but cannot also access JobSeeker. • SGC superannuation continues, but is optional on any excess JobKeeper paid to an employee.
PAYMENT METHOD • Payment is made in arrears monthly, e.g. the two fortnights in April are paid from first week of May. • Monthly reporting of eligible employees to the ATO will be needed. • It will be taxable income, and in turn that paid to employees will be deductible wages. • Amounts paid to a self-employed nominee
will be personally taxable, i.e. not as an employee.
REGISTRATION & PAYMENT DATES • Register on https://www.ato.gov.au/ Job-keeper-payment/ • A future application will also be needed with employee details Example - Mixed Employer Ted Transport company has suffered a 32% estimated downturn and it employs himself on $1,600 per week, a part-time office-worker on $600 per week, and a casual assistant for the past 4 months on $400 per week. Ted gets same pay (with $750pw subsidy), the part-timer gets a pay increase to $750 (with $750pw subsidy), the casual gets the same pay (with no subsidy as has not worked 12 months). The company will receive $750 + $750 + $0 = $1,500 x 4 weeks = $6,000 a month in JobKeeper subsidy, of which $150 x 4 = $600 is an extra wage cost. Ceased Trading Jane's Travel Company has been forced to close, and will be over the 30% decline without having to prove so. Her five permanent employees have been stood down, but Jane will still receive $1,500 JobKeeper subsidy per fortnight for each, after arranging to pay to them same after deducting tax. She chooses not to pay any SGC Super. As a Sole Trader, she also receives a $1,500 Jobkeeper payment personally.
to June should receive the minimum Initial Boost of $10,000 after March lodgement, then the minimum Additional Boost of $10,000 split between your June to September lodgement periods.
ELIGIBILITY • Must have been an employer established with ABN at 12 March with aggregated turnover under $50m. • The entity must continue to be active. • Must have made eligible payments that are subject to PAYGW, even if deduction was nil. • Includes salaries & wages, director fees, ETP's & contractor voluntary agreements. • Must have lodged a 2019 tax return, or a prior BAS, with income by 12 March.
INITIAL BOOST - CALCULATION BASIS • Available amount = maximum of $50,000 & minimum $10,000 for period
to 30 June. • Quarterly lodgers - based on 100% of PAYGW lodged in March & June quarters. • Monthly lodgers - based on 300% of March PAYGW, & 100% of monthly PAYGW to June. • Small lodgers - receive $10,000 if total PAYGW to June is less than #10,000
ADDITIONAL BOOST CALCULATION BASIS • Additional Boost - the total of amounts you received for the Initial Boost above. • Quarterly lodgers - half of the Additional Boost on June BAS, half on September. • Monthly lodgers - a quarter of the Additional Boost each month June to September. • Small lodgers - receive minimum $10,000 spread over relevant BAS June to September. • Both the Initial Boost and the Additional Boost may be received on June lodgement. Continues over page
Boosting Cash Flow for Employers $20k-$100k A maximum $100,000 tax-free for small employer business, with a minimum $20,000. This replaces the initial $25,000 package, and is now based on 100% of Pay As You Go Withholding (PAYGW) lodged, and is receivable over the March, June & September quarters. Half of the limit, that is $50,000 and $10,000, is based on PAYGW lodged for the combined March and June periods and called the "Initial Boost". Then an "Additional Boost" equal to the Initial Boost will be received in the June to September periods (regardless of actual PAYGW). Employers with PAYGW below $10,000 up
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ISSUES & TRENDS PAYMENT DATES • Quarterly lodgers - 28 April (March), 28 July (June), 28 October (September) • Monthly lodgers - 21st of the month following the BAS month • Lodging BAS earlier will not bring forward payment • Deferred or late BAS will receive the Boost when BAS lodged, if within 2 years
PAYMENT METHOD • An automatic credit issued by the ATO to your ICA (BAS account) • You may pay the ATO an amount less the Boost credit, or receive a refund • The ATO will apply a credit balance to other BAS or income tax liabilities • Any credit balance remaining to be refunded (within 14 days)
CONDITIONS & INTEGRITY MEASURES • Schemes for the sole purpose of gaining or increasing the Boosts will be ineligible • The ATO may check the character of amounts being claimed as wages
TAX & ACCOUNTING TREATMENT • Will not be assessable income nor subject to GST • Will usually be included in entity as Grant Income, and debited to your PAYG Liability
Centrelink & $550 supplement (Sole traders and Selfemployed) • Easier eligibility for sole traders & selfemployed, with an additional $550 per fortnight supplement paid from 27 April. • Includes JobSeeker, Youth Allowance, ABSTUDY, Parenting Payment, Farm & Special Benefit recipients. • The full $550 applies if entitlement to the above is at least $1 after test reductions. • No Asset Test or Liquid Asset Test Waiting Period, Income Test applies. • Income Test reduction is at 50% over $104, 60% over $254 or partner earnings over $994. • Apply direct to Centrelink using myGov online or by phone.
Apprentice & Trainee Subsidy • Up to $21,000 per apprentice or trainee you employed as at 1 March, or re-engaged. • Includes JobSeeker, Youth Allowance, ABSTUDY, Parenting Payment, Farm & Special Benefit recipients.
Vary PAYG Instalments • End company or personal tax instalments by varying your BAS, IAS or Instalment Notice. • These are based on ATO estimates of your 2020 taxable income, and will have naturally changed. • In the same process, you may also seek a refund of instalments previously paid for 2020. • Where a bas has already been lodged, or an IAS is automatic, a revision may be possible.
Other
$1,500 SUPPORT WELFARE RECIPIENTS • Applies to all welfare & income support & retirees who hold a Seniors card. • $750 is paid from 31 March, and $750 from 13 July. • The second payment may not be received if
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receiving the new $550 supplement above.
ACCESS SUPER $20,000 • Individuals may draw $10,000 tax-free by 30 June, and another $10,000 up to September. • You must prove a 20% drop in hours or income, or unemployment or Centrelink benefits. • An application to the ATO is needed, which then provides a release to your super fund. • An SMSF must also follow this strict process BEFORE drawing any cash. • Note that this measure will realise permanent losses, that might otherwise be recovered.
COMMERCIAL RENT RELIEF • This may evolve under different State legislation. • An enforced moratorium for 6 months on all evictions is probable. • Commercial property owners get bank loan repayment deferments as above. • The PM's existing advice is to negotiate with your landlord for a rent holiday or discount. • Landlords have been told to simply share the pain... although many are also small enterprises.
ATO LODGEMENT DEFERRALS • An application is still needed to the ATO for each deferral. • A business will usually need to otherwise be up to date and have been impacted by COVID-19.
SMALL BUSINESS LOAN GUARANTEE • The government will provide a 50% guarantee for new unsecured loans up to $250,000. • For a period up to 3 years with an initial 6 month repayment holiday • Normal bank lending criteria and assessments will apply
ASSET WRITE-OFFS & DEPRECIATION • The Instant Asset Write-off increased from $30,000 to $150,000, 12 March to 30 June 2020. • Must be depreciable equipment in place by 30 June 2020. • A new 50% depreciation rate can apply to June 2021 if above conditions are met. • In that case 50% applies in the year of installation, and the usual rates thereafter.
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COVER
WAITING FOR THE SUNRISE: AGENTS KEY TO RE-COVID-ERY
The travel industry has been on the front line of the coronavirus crisis. While the Federal Government has announced that its stimulus packages will apply to any businesses experiencing a downturn of 30% or more, for anyone in the travel and tourism sector the figure has been much closer to 100% - or worse, with clients opting for refunds meaning suppliers and agents have in many cases gone backwards. But after the initial shock of the shutdowns, there are some faint glimmers of positivity emerging – if we can just survive the next few months. Bruce Piper reports.
I
N THE lead-up to Prime Minister Scott Morrison’s COVID-19 closure of Australia’s borders, travelBulletin had an interesting conversation with CATO Chairman, Dennis Bunnik. It was also the day before American President Donald Trump announced that travellers from Europe would not be allowed to enter the USA, which at the time was when things really began to “get real”. Bunnik was becoming concerned about the mounting impact of border closures in Europe which were beginning to impact the ability of Bunnik Tours to operate. And clearly at the time bookings were starting to slow, and like many suppliers the escalating situation in Northern Italy was hitting flight schedules so the Bunnik team were working overtime to reaccommodate passengers. So uncertainty was swirling, but Bunnik was taking comfort from the fact that to some extent the company had been there before. It seems like ancient history now, but about a decade ago Bunnik Tours was known almost exclusively as an Egypt specialist, The company had a strong clientele, well established relationships with suppliers in Egypt and a well-developed product offering. Then in 2011 the Egyptian revolution hit and business was pretty much wiped out - at the same time as the company had to handle repatriation of passengers and manage its way out of a mess not of its own making.
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COVER
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FORTUNE FAVOURS THE BRAVE? SO WHAT will the post-COVID landscape look like? The temptation is for us to hibernate and wait for the storm to pass – but some in the industry are already starting to boldly position themselves to be top of mind for consumers when the travel bug starts to itch
“
The temptation is for us to hibernate and wait for the storm to pass - but some in the industry are already starting to boldly position themselves to be top of mind for consumers when the travel bug starts to itch again. And there’s no doubt that it will, and when that happens anyone who has a strong relationship with their customers is going to be well positioned to capitalise on a surge in demand
”
again. And there’s no doubt that it will, and when that happens anyone who has a strong relationship with their customers is going to be well positioned to capitalise on a surge in demand. Bunnik Tours – perhaps benefiting from its previous Egypt near-death experience – is among the first out of the blocks, maintaining its presence in print and online despite being in just the same boat as the rest of the industry in terms of dealing with cancellations and refunds. The company
Australian consumer spend on travel: News Corp Australia Index
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-52
-72
-89
-92
-96
-96
eb Ma r
Feb 03
Jan 27
Jan
-7
Apr 06
Apr 06
Ma r 30
23
-100
Ma r
16
-80
Ma r
09
-60
Ma r
02
-40
2
-1
24 F
-20
0
Feb
4
0
17
8
Feb
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10
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AS THE coronacrisis started to bite, News Corporation began proactively collating data about changes to traveller spending. The initiative reflects the key importance of travel advertising for the publishing behemoth, with the regular Escape supplement in the company’s Sunday newspapers in Brisbane, Sydney, Melbourne, Adelaide and Hobart believed to be a key revenue driver for the company. Exclusively shared with travelBulletin and Travel Daily, the credit card-based information has provided a graphic illustration of how hard the travel industry has been hit. The most recent figures (see graph) show the massive downturn as COVID-19 began to impact the economy. After relatively strong results in January, things started to slow a little bit the following month, which was when reports about coronavirus in China started to emerge. Then in March, as ever-tighter restrictions and border closures were imposed, the figures began to dive. The most recent results are for the week commencing 13 April, which was Easter Monday, and appear to indicate a glimmer of hope as – inversely to the results for the Australian spread of COVID-19 – the travel spending curve began to flatten out. The travel spending tracker, based on credit card transactions, is the brainchild of News Corp Australia’s Industry Head for
Jan
CONFIDENCE IS KEY
Travel, Omri Godjin, who initiated the index as part of work being done to assist the company’s clients better understand the total retail travel market. Although the figures indicated are an aggregation of spend with major brands across air, accommodation, cruising, travel agents, OTAs and tour operators, sub-category spending data is also available. The latest results – which will hopefully be improved upon in upcoming weeks – are the first time that there hasn’t been an increasing decline, and may indicate the start of a recovery. Godjin also cited other indicators, including a marked change in searches on the Escape website away from coronavirus to more inspirational terms, as well as an uptick in consumer confidence which was heavily slammed in the initial weeks of the COVID-19 lockdowns. There’s no doubt that the world will look markedly different once this crisis is over – but that doesn’t mean there won’t continue to be opportunities – and after the first shutdown shocks some organisations are already on the front foot.
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Now ten years on, Bunnik reflected that although that had been a very hard time, the Egyptian revolution had forced the company to remake itself into what it is now - a globally diversified business which has grown significantly “So when we look back now, we sometimes think, ‘was the revolution a bad thing or a good thing for us?’” he questioned. And in the current context, although there is so much uncertainty ahead, “what we do know is that we are able to manage a crisis,” he added. Most of us don’t have the benefit of hindsight about an event having such a drastic impact on our business, but perhaps it is helpful to reflect on such examples of survival despite catastrophe. The COVID-19 shutdown of the economy has made the days drag very slowly, and the hyper-availability of news on social media along with traditional sources such as TV and radio has contributed to our collective anxiety about the future. But as time grinds on some indicators are beginning to point to a future that may not be as bleak as we all fear.
has been on the front foot right since the earliest stages of the COVID-19 shutdowns, launching a “Still Dreaming” campaign which “celebrates connection, social interaction, meaningful experiences, exciting destinations and most of all inspiration for when the pause button is released”. And while many in the industry have been putting out heartfelt messages about all being “in this together” while at the same time understandably slashing staff, public relations efforts and promotional activities, others like the Travel Industry Hub, C&M Recruitment and others have actually put rubber to the road, banding together to build and maintain travel connections through ongoing webinars – all requiring hours of work with zero remuneration. In terms of mainstream travel media, it has been interesting to compare the proactive “pedal to the metal” attitude of News Corp with the much more conservative approach of its rival at Nine Publishing (formerly Fairfax) which has ceased publishing its popular Traveller supplement. It’s to be hoped that the efforts of those who have been upbeat about the future will bear long-term fruit once the industry gets going again. Another bold move last month amidst the shutdown was the launch by Express Travel Group of a new “corporate silo” within its agency network. The new Alatus Corporate brand provides a new option for travel management companies to navigate the brave new future, which for TMCs is further complicated by the impacts of NDC technology on their businesses which in the case of Qantas has seen income from GDS rebates slashed. The optimistic initiative means that despite COVID-19, Alatus Corporate will commence operations at the beginning of July, and will be part of the group’s 2020/21 financial year supplier contract negotiations. The cruise industry, which has been demonised through the COVID-19 crisis, is also positioning itself for the recovery. And while it’s taken a major battering, the ability of cruise ships to relocate anywhere in the world provides the sector with a natural advantage, particularly if the first stage of international travel relaxations involve a “regional bubble”. Given the unrelenting negative coverage of cruising you can be certain that lines are already doing their very best to ensure that a cruise holiday is the absolute safest place to be for prospective voyagers. There are many other examples of travel
Top: Bunnik Tours has launched a “Still Dreaming” campaign to keep encouraging its customers. Bottom: Travel agents, who already have good established relationships with travellers will be able to capitalise on the recovery of travel when it comes.
people being proactive in preparing for a post-COVID bounce. And if we can grit our teeth and get through this, there’s also going to be a key role for travel agents in sparking the recovery. It is expected to take some time before the general public is completely confident in a return to travel, but as the industry knows, travellers love travelling and travel agents are the ones who have the relationships with these high-spending travel aficionados – many of whom just
“
If we can grit our teeth and get through this, there’s also going to be a key role for travel agents in sparking the recovery... travel agents are the ones who have the relationships with these high-spending travel aficionados
”
can’t wait and who will be influenced and motivated to book future trips once their trusted travel consultant advisor gives them the go-ahead.
BE READY FOR THE BOUNCE JUST as this issue of travelBulletin goes to print, Governments across the country are starting to ease restrictions. Life in some Pacific Island destinations has returned to a semblance of normality after they were declared COVID-19 free, and New Zealand Prime Minister Jacinda Ardern has been proudly touting the country’s success in the coronavirus fight. Marketing guru Mark Ritson has predicted that when restrictions are lifted there will be a three week period of collective community celebration, before spending settles into the new normal which is likely to reflect the unfortunate economic situation forced upon us by COVID-19. Those three weeks – which may be just around the corner – will be key for the industry to maximise its share of what News Corp’s Omri Godjin has described as an “exuberant, post-lockdown spending spree”.
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CRUISE
QUARK NEW ULTRAMARINE VOYAGES QUARK Expeditions officially launched its Antarctica 2021/22 season early last month, boasting many firsts, oncein-a-lifetime unique expeditions, and Ultramarine’s inaugural Antarctica sailings. Available in the new program is the witnessing of a total solar eclipse in the Antarctica on one of the
cruise line’s two special guestaccompanied voyages; a commemoration of the Shackleton-Rowett Expediton, with a ceremony in South Georgia on the 100th anniversary of Shackleton’s passing; a visit to Cape Horn and Diego Ramirez Islands; and an exploration of the Chilean fjords & Torres del Paine National Park. Gearing up for the season, Quark
has also launched a new Polar Learning Channel, helping both travel agents and consumers learn about the polar regions. No logins are needed, and the platform is updated on a weekly basis with new videos, information, interviews, and two webinars each week – one for adults, and another which is family-friendly. Click here to go to the portal.
All passengers safe ALL Australian passengers once stuck aboard cruise ships during the COVID-19 outbreak have now been repatriated. Reports of Aussies stranded aboard vessels such as Azamara Pursuit, Diamond Princess, Greg Mortimer, Norwegian Jewel, and Zaandam, led to fears of when nationals abroad might make it home, with the vessels banned from docking in multiple countries. However, efforts from the Department of Foreign Affairs & Trade, as well as the intervention of the private sector in helping fund repatriation charters, has since seen all Australians returned home.
Crystal shuts down Australian office
©Quark Expeditions
EMERALD’S AZZURRA PROGRESS ON TRACK EVERGREEN Cruises & Tours and sister company Emerald Cruises last month showcased the building of new superyacht Emerald Azzurra, adding that it is on schedule to launch in August 2021, with plans to operate a total of 47 itineraries. “While there are some delays in equipment delivery from Europe and China, we continue to work with the shipyard on how to minimize that impact,” said Scenic Group Chairman Glen Moroney.
“The entire Emerald Yacht Cruises team is excited to see [Azzura] progressing, and looks forward to welcoming guests onboard this magnificent yacht as it begins cruising the Mediterranean in 2021.” Announced at Scenic’s Night of Stars in Sydney in February, Emerald Azzurra will be the first vessel operated by the new Emerald Yacht Cruises brand, which alongside Emerald Waterways will be one of the two brands which make up the Emerald Cruises portfolio.
Contact your preferred Quark Expeditions wholesaler, visit Quarkexpeditions.com, or call 1800 812 855
CRYSTAL Cruises last month announced the closure of its Australian office. The move was revealed alongside a range of “offensive and defensive measures”, which included a review of worldwide businesses to ensure the cruise line will weather the COVID-19 pandemic. The operational and sales & marketing duties of Crystal’s Sydney office are being transitioned to Genting Cruise Lines’ Sydney team, with Crystal Senior Vice President & MD Australasia Karen Christensen remaining with the company for 90 days to assist.
Cruise terminal delay WORKS on a proposed new Sydney cruise terminal in Botany Bay have been put on hold for at least 18 months due to the COVID-19 crisis. All community and industry engagement has been suspended, with locals strenuously opposing the plans for a potential operation between Yarra Bay and Molineaux Point. NSW Transport and Ports Minister, Andrew Constance, said there was significant uncertainty about postcoronavirus demand for cruising, while various official probes into the Ruby Princess – including an official Commission of Inquiry – mean any cruiserelated projects are a political hot potato. The state’s anti-cruise stance was further accentuated during the month when Police Commissioner Mick Fuller ordered all cruise ships to depart.
CLIA VIEW Joel Katz, Managing Director CLIA Australasia
PEOPLE COME FIRST ON THE PATH TO RECOVERY WITH services suspended and our ships at anchor, the global cruise industry is now working hard to build new foundations for our future operations. Foremost will be a new health framework to uphold the safety of guests and crew. In an industry that is all about people, our recovery strategy will put people first and ensure that health and safety – as always – are the primary focus. Right now, teams within CLIA and the cruise lines are working closely with medical experts and health authorities to ensure we learn as much as possible from the unprecedented events caused by COVID-19. Our aim is to be ready with the best possible measures in place when the time comes to resume sailing, and to ensure that we exceed community expectations in our response. Together we are working strategically on three fronts. The first of these is in maritime policy, where medical experts and industry leaders are working to define how we will operate cruises in the future. The maritime policy work will ensure that we address community concerns and the requirements of authorities internationally. The second is in government affairs, involving engagement with political
leaders and state and federal regulators to ensure our actions are understood and that we can be partners in creating a new operating landscape for cruising. The third is in communications, preparing to show that we are a responsible industry, and to explain all that is being done as we work towards a resumption of services. It’s an enormous challenge and one that offers no quick solutions, which is why we have embarked on a process that will be extremely thorough and will address the concerns that communities and authorities expect to see us confront. While it’s too soon to discuss specific procedures being developed or the timing, the industry’s priority will be to ensure the safety and security of guests, our crew and the communities that cruise lines visit. The cruise industry is not alone in having to confront this disease, but we will aim to set standards that other sectors may follow when it comes to our response. In the meantime, we will support our wider cruise community – especially our travel agent partners – and prepare to communicate the changes we make in order to restore confidence before we sail.
HEADLINES APRIL 2020 01 Apr 02 Apr 03 Apr 06 Apr 07 Apr 08 Apr 09 Apr 14 Apr
Webjet shuts cruise division Myrmell plays front foot defence HAL guests allowed to disembark NSW Police to probe Ruby Greg’s large-scale COVID outbreak Agents key post-COVID: CLIA Crystal shuts down Aussie office US CDC extends “no cruise” order
15 Apr Sydney cruise terminal delayed 16 Apr Princess pledges to support probe 17 Apr Tauck offering US-based res team 20 Apr “Cruise will come back”: Burnes 21 Apr CLIA developing new health policy 22 Apr Emerald Azzurra & Luna on track 23 Apr Princess thanks Port Kembla 24 Apr Tassie gets Spirit with Geelong
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LAST WORD
SWEDISH MEATBALLS WITH CRANBERRY SAUCE From Regent Seven Seas Cruises (RSSC) Culinary Arts Kitchen recipe book comes this recipe for delicious Swedish Meatballs, created by Chef Kathryn Kelly, who joined RSSC as Director of Culinary Arts in 2016. Working closely with Jacques Pépin, Chef Kelly is considered a leading
TRAVEL THE GLOBE DOT TO DOT Starting at number one, can you join together the dots to reveal the picture? Click on the download button to get a PDF of this page to print out and give it go.
innovator in culinary education.
Ingredients CRANBERRY SAUCE –– 4 cups fresh or frozen cranberries –– 1 cup unsweetened cranberry juice –– Zest and juice of 1 lemon –– Zest and juice of 1 orange –– ½ cup honey MEATBALLS –– 1 pound ground veal –– 1 pound ground pork –– 1 cup fresh breadcrumbs –– 2 eggs, beaten –– 2 teaspoons kosher salt –– 1 teaspoon freshly ground white pepper –– 1 teaspoon allspice –– ½ teaspoon cloves –– ¼ cup clarified butter –– 1 cup finely diced shallots –– 2 bay leaves –– 4 allspice berries –– ½ cup white wine –– 1½ cups heavy cream –– ½ cup veal demi-glace –– ½ cup sour cream GARNISH –– 2 tablespoons finely chopped dill –– 2 tablespoons finely chopped mint –– 2 tablespoons orange zest
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travelBulletin MAY 2020
Method MAKE THE CRANBERRY SAUCE In a medium saucepan over medium high heat, combine the cranberries, juices and zests and bring to a boil. Decrease the heat to medium-low, add the honey and simmer until the sauce thickens, about 15 minutes. Remove from the heat, taste and adjust the sweetness with additional honey if needed. PREPARE THE MEATBALLS Preheat the oven to 375°F/191°C. Line a sheet pan with aluminum foil and top with an elevated wire rack. In a large bowl, combine the meats, bread crumbs, eggs, salt and spices and mix well. Form 18 equally sized meatballs. Place the meatballs on the prepared pan and let rest until set and room temperature, about 1 hour. In a large sauté pan over medium-high heat, sear the meatballs in the butter until lightly browned. Return the meatballs to the prepared pan and bake until they reach an internal temperature of 155°F/68°C. Remove from the oven and reserve warm. In the same sauté pan over medium heat, sweat the shallots with the bay leaves and allspice berries until the shallots soften and the spices bloom, about 3 minutes. Increase the heat to medium-high. Add the wine and stir to deglaze the pan, allowing the alcohol to evaporate and the sauce to reduce to a syrupy consistency. Decrease the heat to medium-low and remove the bay leaves and allspice. Stir in the cream and demi-glace and heat for about 3 minutes. Stir in the sour cream, return the meatballs to the pan and heat until warmed through, about 5 minutes. TO SERVE The meatballs can be served over rice, noodles or mashed potatoes. Garnish with the dill, mint and orange zest and serve the cranberry sauce on the side.
travelBulletin MAY 2020
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