TravelBulletin for October 2015 - The wheel of fortune, Luxury Travel, Rail Journeys, South America,

OCTOBER 2015

LUXURY TRAVEL RAIL JOURNEYS SOUTH AMERICA CHRISTMAS HOLIDAYS

The wheel of

SINGAPORE

fortune

The rollercoaster ride of travel industry executive salary packages

CONTENTS

From the managing editor Bruce Piper

COVER STORY The wheel of fortune

20

features 32 38 44 54 60

Luxury Travel Rail Journeys South America Christmas Holidays Singapore

monthly 02 06 16 18 19 25 26 30 64

State of the industry Issues and trends Business events news Brochures Technology Your travel business Cruise report Industry in focus Last word

columns 02 06 07 13 17 29

Ian McMahon Steve Jones AFTA View ATEC View EEAA View CLIA View

www.travelbulletin.com.au Travel Bulletin is part of the Travel Daily family of publications

Some of Helloworld’s major shareholders certainly don’t appear to be very happy, with the normally mild-mannered Andrew Burnes displaying considerable frustration last month over a potential Helloworld takeover of his AOT group. For some months a possible Helloworld-AOT deal has been a not-very-well-kept industry secret, and eventually Helloworld confirmed that talks were indeed under way once the Australian Financial Review published the speculation.

The Burnes family already holds more than 10% of HLO, and industry observers see any acquisition of AOT playing out with wider ramifications for the company – particularly given the pending departure of CEO Elizabeth Gaines. To be fair, at the time Helloworld noted that the evaluation of the potential acquisition of AOT was still in progress, with no deal agreed or approved by the company’s board and “there is no certainty that the current discussions will lead to any transaction”.

Fast forwarding two weeks, Helloworld issued another statement saying it had been unable to reach agreement with the AOT shareholders on acceptable terms, and as a result had terminated discussions effective immediately. Helloworld said the terms of the deal would have seen the vendors of AOT becoming “significant minority shareholders” – notwithstanding the fact that they already are. “The Board of Helloworld has unanimously concluded that the strategic and financial merits of the acquisition on the terms proposed were insufficiently compelling to warrant proceeding with the transaction,” the company said in an ASX update.

And that’s where things would have stood, until later that week when Burnes spoke out with a somewhat different take on what had transpired. He told Travel Daily the Helloworld ASX release was a “fairly extraordinary and disingenuous statement, given that the terms they are talking about are their own. Terms that they proposed. Terms that we had not even been given an opportunity to respond to,” he said.

The no-holds-barred comments continued, with Burnes slamming Helloworld’s “poor track record of under-performance”.

The outburst leads pundits to think that this is certainly not over.

While Helloworld insists it is making “strong progress to future proof its business,” the lack of certainty about who will lead the company must surely give rise to concern among suppliers, staff and of course long-suffering franchisee and member travel agents – and perhaps also creates opportunities for shareholders like Burnes (or others) to do something which will be a catalyst for further change within Helloworld.

This month’s contributors Steve Jones, Brett Jardine, Jayson Westbury, Joyce DiMascio, Gary Walsh, Matt Lennon, Guy Dundas, Jasmine O’Donoghue, Sheriden Rhodes, Brian Johnston, Lee Mylne

EDITORIAL Managing Editor – Bruce Piper bruce.piper@travelbulletin.com.au Editor – Kris Madden Ph: 02 8090 3125 kris.madden@travelbulletin.com.au Editor at Large – Ian McMahon Ph: 03 9568 4464 or 0414 320 321 imcmahon@travelbulletin.com.au

Advertising National Sales Manager Lisa Maroun Ph: 0405 132 575 or 02 8007 6760 lisa.maroun@travelbulletin.com.au Production Co-ordinator Sarah Piper Ph: 1300 799 220 or 02 8007 6760 sarah.piper@travelbulletin.com.au www.travelbulletin.com.au

DESIGN TEAM Wendy St George, Sarah Piper, Hannah Power FINANCE Jenny Piper jenny.piper@travelbulletin.com.au 4/41 Rawson Street Epping NSW 2121 PO Box 1010 Epping NSW 1710 Australia Tel: 1300 799 220 (+61 2 8007 6760) Fax: 1300 799 221 (+61 2 8007 6769)

travelBulletin OCTOBER 2015

1

STATE OF THE Industry New travelBulletin one year on

Ian McMahon’s perspective

DOMESTIC TRAVEL OFFER OPPORTUNITIES THE steady depreciation of our floating Australian dollar over the course of this year sees it currently at levels around US$0.70.

Most sectors of our industry – outbound, inbound and domestic – would probably agree that these levels provide reasonable prospects for growth.

As leisure travel agents will attest, outbound growth no longer has the exuberance of those heady days when one of our dollars bought US$1.05 or more, but the numbers of Australians travelling overseas continue to increase.

They were up 2.8 per cent to 9.2 million in the 12 months to June 30. That pales by comparison with the headlong 130 per cent growth achieved between 2006 and 2014. Nevertheless it is a respectable amount of new business delivered to an already booming market.

Significantly, however, the headline figures from the latest National Visitor Survey, show domestic travel growth well ahead of the outbound growth figure.

According to TRA, in the year ending June 30, Australians took five per cent more domestic trips (83.2 million); they spent six per cent more nights away from home (313 million); and their spending on these trips was up by four per cent ($55.4 billion).

As with all statistics, there can be quibbles over detail. On the impact of

currency devaluation, for example, it should be noted that the USD comparison is by no means the whole story. AUD depreciation has been much less against the Euro, the UK pound and the New Zealand dollar.

Similarly domestic travel growth may be slightly inflated by a change in TRA methodology. For the first time it undertook mobile phone interviewing which improved coverage of business travellers and contributed to the increase shown in this sector.

Nevertheless the trend is clear.

Domestic travel is growing and will offer greater opportunities to travel agents.

As the pace of international travel growth slows, there will be new opportunities for agents to market value-added arrangements for longer, interstate holiday trips, short stays (perhaps events-related) and meetings.

A significant figure from the latest TRA results is that interstate trips, typically involving longer stays and visits to more locations, are up by seven per cent. They account for 43 per cent of nights and 54 per cent of money spent ($30.2 billion).

As we recognise there are domestic tourism opportunities to be exploited, let’s applaud our new Prime Minister for restoring tourism to the Federal Government ministry. Welcome, Senator Richard Colbeck.

This issue marks a year since travelBulletin joined the Travel Daily family of publications, and we would very much like to thank the industry for your ongoing support. We continue to be the only publication exclusively focused on the Australian travel industry and are proud to provide the most relevant and insightful commentary and analysis – perfectly complemented by our must-read daily electronic publications, Travel Daily, Cruise Weekly and Business Events News.

Our firm focus is on bringing our readers the best possible editorial, that helps you in your businesses and careers – and we think we are clearly succeeding, with our paid subscriber numbers growing steadily from right across the industry, and more than 11,000 of you downloading the issue from our website at travelbulletin.com.au each month. So thanks for your support, and here’s to the next 12 months!

WoAG air travel tender The federal Department of Finance has issued tender documents for the provision of domestic and international air travel, under the Whole of Australian Government (WoAG) system where the existing contracts expire at the end of April next year. Clearly public servants fly a lot, with figures in the documents confirming the successful tenderers will provide travel services worth a whopping $420 million annually for 120,000 public servants working across about 140 government departments and agencies.

The scale of the requirements is staggering, with an industry briefing confirming the government also spends about $126 million on accommodation, and $19 million on car

business monitor OUTBOUND MARKET

INBOUND MARKET

MAIN DOMESTIC ROUTES

Top 10 domestic city pairs at July 2015

Top 10 destinations, July 2015

Top 10 sources, July 2015

Destination Trend Seasonally Original Trend Trend Jun 15/ Jul 14/ Adjusted

Jul 15 Jul 15

000 000 000 % % New Zealand 105.4 101.9 98.0 -0.2 +6.8 Indonesia 91.5 89.8 97.3 -0.7 -1.2 USA 85.2 90.6 83.5 +1.5 +6.9 UK 47.9 49.6 70.7 +1.5 +3.1 Thailand 46.4 46.8 50.6 +0.3 -0.2 Fiji 28.9 29.2 33.3 +0.3 +5.2 Singapore 29.2 29.1 31.5 -0.1 -5.0 China 37.3 36.0 26.3 +0.7 +14.0 Italy 15.9 16.7 21.8 -0.1 +4.0 Malaysia 20.7 20.6 20.4 -1.0 -14.4 All outbound 781.7 788.9 822.2 +0.2 +2.8

Source Trend Seasonally Original Trend Trend Adjusted May 15/ Jun 14/

Jun 15 Jun 15

000 000 000 % % 128.5 +0.6 +8.5 New Zealand 111.0 112.3 China 84.2 81.6 94.5 +0.6 +16.0 USA 49.0 47.9 44.4 +0.0 +9.4 UK 56.6 57.0 41.0 -0.4 +3.8 Malaysia 28.9 27.3 30.1 +1.0 +1.6 Japan 27.0 26.8 28.9 +0.2 -2.9 Singapore 31.9 31.4 27.1 +0.0 +1.8 Indonesia 11.9 11.7 26.1 -1.9 -4.2 Hong Kong 18.8 19.1 20.8 +1.6 +10.3 South Korea 17.3 17.1 16.0 -1.9 +1.7 All inbound 610.4 607.0 627.1 +0.0 +5.8

City pair

Passengers Passengers % change YE Jul 14 YE Jul 15

Melbourne-Sydney Brisbane-Sydney Brisbane-Melbourne Gold Coast-Sydney Adelaide-Melbourne Melbourne-Perth Adelaide-Sydney Perth-Sydney Gold Coast-Melbourne Hobart-Melbourne

(000) (000) 8,251.3 8,507.4 +3.1 4,460.3 4,421.8 -0.9 3,284.9 3,332.6 +1.5 2,587.4 2,588.4 +0.0 2,239.7 2,289.0 +2.2 2,178.3 2,144.0 -1.6 1,781.6 1,821.2 +2.2 1,799.3 1,778.3 -1.2 1,721.8 1,771.1 +2.9 1,392.2 1,456.6 +4.6

Source: Australian Bureau of Statistics

Source: Australian Bureau of Statistics

Source: BITRE

2

travelBulletin OCTOBER 2015

STATE OF THE Industry rental every year. The evaluation criteria includes the competitiveness of the fares and any discounts offered, and the fare conditions associated with each fare and how these will benefit or disadvantage the government. A panel of successful tenderers will be appointed, with each airline required to work cooperatively with the government’s appointed Travel Management Company – Helloworld’s QBT – to “ensure successful integration and utilisation of the services”.

Prospective tenderers must submit their bids by 2pm on 22nd October 2015.

Qantas pilots FlyPink

Trafalgar transparency The Travel Corporation’s Trafalgar operation is continuing its ongoing evolution, with the Qantas Group pilots will FlyPink from this launch of a new tagline and collateral in month, swapping out their normal gold conjunction with its 2016 Europe brochure. epaulettes (shoulder stripes) for pink Australia is a key market for Trafalgar – the ones, to show their support during Breast company which has introduced a whole new Cancer Awareness Month. The Australian“guided holidays” vernacular to the segment first initiative was started by QantasLink – with ceo Gavin Tollman telling travelBulletin Captain Susan McHaffie whose aunt was the new Simply the Best slogan reinforces diagnosed and beat breast cancer. Joining the company’s bold move last year to publish the airline in 2013, Susan was inspired unmoderated, uncut traveller reviews on its by the National Breast Cancer Foundationwebsite. Tollman said the feedback from branded pink QantasLink aircraft to find clients is overwhelmingly positive. “Whenever I’m having a bad day, I just go and look at the reviews and they cheer me up,” he said.

Travel agents can benefit from the as smoothly, with the departure of New company’s openness too, with Tollman Horizons managing director Chris Evans “to suggesting consultants simply turn their YEAR ENDED JUNE 2015 pursue a new career challenge” expected to screens around and show their clients what Chart I passengers International Carried 2013 to June 2015 the Perth-based wholesaler merged into arePassengers saying. He said a(thousands) key benefit- Junesee Creative Holidays.

The Travel Corporation of the instant reviews had been that Trafalgar 1950 INBOUND insisted that New Horizons will continue to is also able to quickly address any problems OUTBOUND 1700 as soon as they arise, resulting in even maintain a local presence in WA in a joint operation with Creative, with the business to higher levels of guest satisfaction.

1450 be overseen by Creative Holidays managing Meanwhile elsewhere in the Travel 1200 Corporation things don’t appear to be sailing director James Gaskell.

a way to raise funds and awareness for breast cancer research that would encourage airlines around the world to join together for the cause. McHaffie said she hoped her small idea would encourage other airlines to show their support.

QantasLink will serve food items in FlyPink branded boxes and brownies in support of the campaign. Customers and other Qantas employees can support FlyPink by donating to www.flypink.net

Tourism Australia heads South The appointment of Tony South as the new chair of Tourism Australia came as a surprise to some, with the coveted job previously held by former Qantas ceo Geoff Dixon the subject of much speculation in mainstream media. Names such as Carnival Australia Continues over page

950

business monitor

Jun-15

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700

DOMESTIC AIR MARKET – July 2015

International Air Market Share

Chart II

International passengers by major airline – year ended June 2015

International Passengers by Major Airlines - Year ended June 2015

Qantas Airways, 15.7% Others, 26.6% Emirates, 9.8%

Total pax carried Revenue pax kms (RPK) Avail seat kms (ASK) Load factor (%) Aircraft trips (000)

Growth (%) +2.0 +2.5 +1.1 +1.0* +0.3

Yr to Yr to Growth Jul 14 Jul 15 (%) 57.64m 57.32m -0.6 68.00bn 67.58bn -0.6 89.49bn 88.36bn -1.3 76.0 76.5 +0.5* 639.8 635.6 -0.7

Source: BITRE * Percentage points

Domestic On Time Performance – July 2015

Etihad Airways, 2.5% Jetstar, 8.9%

AirAsia X, 3.5% Malaysia Airlines, 4.2%

Cathay Pacific Airways, 5.1%

Jul Jul 14 15 5.05m 2.15m 6.07bn 6.22bn 7.75bn 7.84bn 78.3 79.4 55.4 55.6

Air New Zealand, 7.4%

Jetstar Qantas QantasLink REX Tigerair All Airlines

Singapore Airlines, 8.6% Virgin Australia, 7.7%

Source: BITRE

Departures on Time Arrivals on Time No. % No. % 6,021 85.5 6,136 87.1 8,916 92.3 8,619 92.3 8,748 88.0 8,660 87.1 5,372 87.7 5,264 85.9 1,791 88.3 1,776 87.6 43,537 89.7 43,291 89.2

Cancellations No. % 146 2.0 96 1.0 335 3.3 21 0.3 32 1.6 782 1.6

Source: BITRE

Table I

International Passengers by Uplift/Discharge City Pairs (a)

Foreign

Australian

Year ended

Year ended

Year ended

% of

% Change

Port

Port

June 2013

June 2014

June 2015

Total

2015/14

travelBulletin OCTOBER 2015

3

STATE OF THE Industry Continues from previous page ceo Ann Sherry and Transfield chair Diane Smith-Gander were bandied about, alongside former politician Bruce Baird and even ANZ chairman Warwick Smith.

However in the end it was South, who had been acting in the role once Dixon stepped down on 30th June, who got the gong – and an excellent appointment it is too. South’s tourism credentials are impeccable, with an extensive industry career including roles with InterContinental Hotels Group, Tourism Accommodation Australia and as a long-time consultant. It will be instructive to see the evolution of Business Events Australia under his leadership, with South also a former managing director of the Sydney Convention and Visitors Bureau, now Business Events Sydney, meaning he has a clear grasp of the strong benefits of the meetings and conference market to build tourism value.

Google continues travel push Google’s access to big data is unprecedented, and travel appears to be one of the key sectors where it is opening up its intelligence to the wider market. Last month a new “Travel Dashboard” was unveiled at the Future Travel Experience Global show in Las Vegas, presenting data trends and travel booking patterns across 25 major US markets. Initially covering information gathered over a two year period to June 2015, Google promised that users will be able to see the most-searched brands, destination queries and the top five questions asked of its search engine, as well as segmenting the results based on whether the searches were from mobile or desktop devices.

That announcement was followed a few days later by the revelation that Google is

Hat trick for Fraser Sydney Continuing on its winning streak this year, Fraser Suites Sydney has taken home its third award in seven weeks after it was awarded Apartment / Suite Hotel of the year recently at the Australian Hotels Association 2015 National Awards for Excellence.

The AHA Awards were held at Jupiter’s Casino on the Gold Coast where over 450 of the hospitality industry’s best were present, representing hotel and accommodation venues from around the country.

To enter the national awards, entrants must have already won an AHA / TAA award in their own State, applications were then judged by a panel and anonymous site visits were conducted to choose the winner. This year, there were 187 entrants and five finalists in the Apartment / Suite Hotel of the Year category. The award rounds out a hat trick of wins for the property which also received accolades in the recent HM Awards and the NSW Tourism Accommodation Australia (TAA) Awards. Pictured above is Ben Nesbitt, general manager of Fraser Suites Sydney receiving the award from Arthur Antonellos of HostPlus.

also introducing a new commission-based advertising program for hotels. Bookings generated via the Google Hotel Ads platform will see accommodation providers charged “industry standard” commissions for bookings rather than the standard cost-perclick model – meaning Google is becoming a direct competitor to online travel agents.

Some analysts say this seismic shift is likely to significantly impact major players such as Expedia and Booking.com, which spend millions of dollars to ensure they appear at the top of Google search results.

Sydney on the agenda for QR? Qatar Airways’ outspoken ceo Akbar Al Baker has a love-hate relationship with Sydney. When the carrier first announced its Australian flights from Doha in 2009, Melbourne was the first cab off the rank, but Sydney was planned to follow shortly thereafter – with a Qatar Airways route map clearly indicating the debut of services ex SYD scheduled to commence in early 2010.

Sydney quietly slipped off the QR map shortly thereafter, and since then Al Baker

business monitor INTERNET AGENCY MARKET SHARES

August 2015, compared with July 2015 Rank Company

Market share Relative diff Rank Aug 2015 % Jul to Aug Jul 2015

1 Webjet Australia 15.78 2 Expedia Australia 9.13 3 Wotif.com 8.79 4 Skyscanner Australia 6.92 5 Flight Centre 6.57 6 Lastminute.com.au 2.95 7 Cheap Flights Aus & NZ 1.70 8 Luxury Escapes 1.68 9 CheapOair 1.61 10 FareCompare 1.38

+1.5 +7.28 -0.6 -4.43 -5.89 -13.78 -3.84 -0.09 -0.85 -7.0

1 3 2 4 5 6 7 8 9 10

Source: Experian Marketing Services’ Hitwise – www.experian.com.au/hitwise

4

travelBulletin OCTOBER 2015

SHARE PRICES

INTERNATIONAL AIR ROUTES

23 September 2015

Top 10 city pairs (at June 2015)

City pair

Passengers YE Jun 14

Passengers YE Jun 15

% of % change total 14/15

Flight Centre (FLT)

$34.18

Helloworld (HLO)

$0.30

Auckland-Sydney 1,463,632 1,505,357 4.4 +2.9 Singapore-Sydney 1,376,639 1,385,345 4.1 +0.6 Singapore-Melbourne 1,125,247 1,163,293 3.4 +3.4 Auckland-Melbourne 1,012,714 1,097,993 3.2 +8.4 Singapore-Perth 1,052,054 1,005,642 3.0 -4.4 Auckland-Brisbane 890,790 954,546 2.8 +7.2 Hong Kong-Sydney 945,599 928,850 2.7 -1.8 Denpasar-Perth 832,088 918,781 2.7 +10.4 Los Angeles-Sydney 896,193 898,252 2.7 +0.2 Kuala Lumpur-Melbourne 899,637 861,305 2.5 -4.3 Top 10 city pairs 10,494,593 10,719,364 31.7 +2.1 Other city pairs 21,883,583 23,147,111 68.3 +5.8 ALL CITY PAIRS 32,378,176 33,866,475 100.0 +4.6

Webjet (WEB)

Source: BITRE

Disruptive Investments (DVI)

$4.29 $0.035

Qantas (QAN)

$3.69

Virgin Australia (VAH)

$0.47

Ardent Leisure (AAD)

$2.58

Air New Zealand (AIZ)

$2.22

Auckland International Airport (AIA)

$4.47

Sydney Airport (SYD)

$6.00

Corporate Travel Management (CTD)

$9.79

Cover-More Insurance (CVO)

$2.22

Regional Express (REX)

$0.91

Sealink (SLK)

$3.10

STATE OF THE Industry has made a range of assertions, particularly attacking the Sydney curfew which makes onward connections via Doha difficult. In 2012 he told Travel Daily “there will be further Australian routes, but it won’t be to Sydney. We’re not in the business of parking planes on the ground for ten hours”.

The debut of Perth services in 2012 meant QR had used up its full allocation of 14 weekly flights – but late last month a new bilateral has put the matter up for grabs again, with an allocation of 21 services available which would equate to daily flights from three ports. The NSW capital is expected to be the next step – particularly given new rhetoric from Al Baker earlier this year when he insisted “Sydney has never been off the radar”.

Reynolds returns to Australia The appointment of Steve Reynolds to the role of executive general manager with APT continues the touring and cruising giant’s seemingly relentless expansion. Reporting to APT Group ceo Chris Hall, Reynolds will oversee the APT operations globally, while the new executive structure will also see David Cox with a similar Executive GM role looking after Travelmarvel.

Reynolds has an impeccable industry pedigree, joining APT from his former Londonbased role as managing director of BackRoads Touring. He joined Back-Roads about three years ago, after steering Tempo Holidays through its acquisition by Cox & Kings. Under the APT restructure Debra Fox will work across both APT and Travelmarvel as executive general manager of Global Sales & Marketing, while David Courage rounds out the team as executive general manager of Global Operations, Innovation and Procurement.

AUSTRALIAN AIRPORTS

International passenger through Australia’s major international airports – June 2015 Airport

Passengers Passengers YE Jun 14 YE Jun 15

Sydney 13,238,439 Melbourne 7,666,124 Brisbane 4,807,993 Perth 4,055,604 Adelaide 906,523 Gold Coast 875,310 Cairns 469,584 Darwin 338,826 Norfolk Island 11,747 Sunshine Coast* 8,026 n/a Port Hedland~ All Airports 32,378,176

13,508,201 8,410,941 5,143,336 4,187,270 933,477 878,957 488,379 292,218 11,845 10,228 1,623 33,866,475

% of total

39.9 24.8 15.2 12.4 2.8 2.6 1.4 0.9 0.0 0.0 0.0 100.0

% change 15/14

+2.0 +9.7 +7.0 +3.2 +3.0 +0.4 +4.0 -13.8 +0.8 +27.4 n/a +4.6

* Operated scheduled service from July 2012 to September 2012, June 2013 to October 2013 and June 2014 to October 2014. Scheduled services recommenced April 2015.

Yes, (Tourism) Minister New prime minister Malcolm Turnbull wasted no time in putting his stamp on his new government, with the long-awaited appointment of a tourism minister warming the hearts of travel and tourism lobby groups across the country.

Predictably the accolades were followed by calls for the new role to become part of the Cabinet, but you can’t have everything.

Tasmanian Senator Richard Colbeck will oversee the tourism portfolio, indicating that Turnbull recognises the importance of the sector which was previously part of Andrew Robb’s Trade and Investment remit.

If you have a really ‘cheap service, in the case of Airnb, what does that do to the margins of your traditional infrastructure, and how do you manage to maintain it

’

Tourism Minister Richard Colbeck Interestingly, one of Colbeck’s first initiatives has been to announce he will consider the impact of “sharing-economy” businesses such as Airbnb and Uber on the sustainability of the domestic tourism industry. “If you have a really cheap service, in the case of Airbnb, what does that do to the margins of your traditional infrastructure, and how do you manage to maintain it,” he asked.

ACREDITED AGENTS 22 September 2015

NSW 1012 VIC 735 QLD 657 WA 322 SA 231 ACT 50 TAS 40 NT 23 total 370

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HEADLINES 20 Aug Etihad revamps fare structure 21 Aug ACCC approves Qantas-China Eastern tie-up 21 Aug Kogan enters travel arena 24 Aug Capri by Fraser for Sydney 25 Aug New STA backpacker shops 25 Aug Aussie Bali visits drop 14% 26 Aug CTM profit up 75% to $29m 26 Aug NZ$496m profit for Air NZ 27 Aug Flight Centre reports $366.3m

full year profit 27 Aug $8.8m profit for Magellan 27 Aug Mantra revenue up $9.7m 28 Aug Helloworld $6.9m ‘adjusted profit’ 28 Aug ACCC appealing Flight Centre judgement 28 Aug Echo Entertainment plan to rebrand 31 Aug NZ industry celebrations 31 Aug FC vows to defend ruling 01 Sep BYOjet turns over $92.4m 02 Sep Tourism coalition backs FTA 02 Sep Malaysia Airlines reborn 02 Sep Helloworld confirms AOT talks 03 Sep Another profit for Choice 03 Sep TA #notatourist Visa pact 04 Sep China arrivals surged 16% 04 Sep AOT gets Masters games 07 Sep MU deal trumps EK: Joyce 07 Sep Sunset for New Horizons md 08 Sep QF UK capacity renewal 08 Sep Aussie lux market to soar 09 Sep United Airlines ceo steps down effective immediately

09 Sep IATA billing cycle to halve 09 Sep VA unveils BNE upgrades 10 Sep SQ 2016 earlybird release 10 Sep Branson tips tourism boom 11 Sep Zym Travel case adjourned 11 Sep Low A$ good for Trafalgar 14 Sep Malindo Air plotting PER 14 Sep Helloworld terminates AOT talks 15 Sep WoAG air travel tender 15 Sep QF seat selection fee rejig 16 Sep QF married segment focus 17 Sep Qantas back to Denpasar 17 Sep Magellan eyes $926m TTV 18 Sep SeaLink to buy Stradbroke Ferries 18 Sep Magellan organic growth 18 Sep Walshe group handling ANA 21 Sep Tourism Minister returns 21 Sep Jetstar LATAM codeshare travelBulletin OCTOBER 2015

5

ISSUES & TRENDS

25 years just the beginning

Steve Jones’ Say

WHO REALLY OWNS THE CUSTOMER? I have a hunch, and a pretty strong one, that few people would disagree with the observation that airlines and agents don’t always see eye to eye.

There are, of course, exceptions and there will be many examples of harmonious relationships where the two work together like brothers in arms.

That harmony certainly appears to exist between the two industry bodies; the International Air Transport Association and the Australian Federation of Travel Agents. For two years, on and off, they were involved in negotiations over changes to IATA’s Billing and Settlement Plan (BSP), the system by which IATA-accredited travel agents transfer money to airlines.

The result of such negotiation led to the agreement of a two-year transition period for a processing restructure that will see IATA reduce the credit given to agents from 14 days to seven.

While hardly catastrophic for agents, retailers will, as AFTA acknowledged, lose “significant” amounts of interest they accrue on trust accounts where client monies are held.

On the surface, airlines seem completely within their rights to demand their money earlier (and this is most certainly a demand, not a request).

But is it really their money? If I buy

a Qantas ticket today for a flight to the UK next March, can my $2500 really be considered their money to demand?

Not according to Express Travel Group CEO Tom Manwaring, who argues that the funds remains those of the customer until the product is supplied.

No one is suggesting the cash belongs to the agent. But there is a strong case for arguing that neither does it belong to airlines, yet they are the ones, via IATA, demanding payment earlier.

It’s akin to the age-old quarrel of who owns the customer. Is it the agent or the supplier? The answer of course is neither, and certainly not in this business environment of an empowered consumer.

AFTA has done well to negotiate such a long transition period – it was never going to prevent the BSP change from happening – and IATA had the power to implement this way before 2018. But once again it rather feels as though agents have drawn the short straw.

At the very least it will see several more retailers relinquish their IATA accreditation, a scenario that won’t displease consolidators.

As IATA accreditation becomes ever more onerous for agents, the more the likes of Air Tickets and Consolidated Travel will become the principal connection between the trade and IATA.

South Australia’s premier travel agency Phil Hoffmann Travel is setting a course to pass $200 million annual turnover, open new overseas travel markets for holiday-makers and create up to 60 local jobs along the way.

The local family owned agency, which turned 25 years old last month, has outlined its bold growth plans which include expanding its business travel division and carving out greater market share in the global cruising market.

Chief executive officer Peter Williams said the travel company was entering one of the most exciting chapters in its 25-year history.

“Our business has evolved in line with the market, changing technology and the specific travel desires of our clients,” Williams said.

“While the company has grown and branched out into a greater range of services, we’ve remained focused on ensuring our clients have a great travel experience. The reason we have survived and thrived in such a competitive industry over 25 years is as simple as that. Treat your clients as you’d like to be treated and you’ll have clients for life.”

Pictured (Lto R) is Phil Hoffman and Peter Williams.

LIVE, GENUINE REVIEW RATING. OTHERS SAY IT, WE PROVE IT. AWARDED GOLD TRUSTED STATUS. We offer unbeatable guided holidays, filled with richer, deeper experiences – meaning happy clients, repeat sales and simply the best earnings for you.

#SimplyTrafalgar

Trafalgar.com

ISSUES & TRENDS

Magellan eyes the future

By Jasmine O’Donoghue Magellan Travel Group fell short on its member and agent number goals for FY15, but exceeded its financial goals, CEO Andrew Macfarlane (pictured) revealed at the Group’s annual conference.

The Group surpassed its goal of $850 million TTV for FY15, reaching $863 million, while operating profit reached $8.9 million, past the target of over $8 million. Magellan also kept costs down to 8.2 per cent of operating profit, after aiming to achieve less than nine per cent.

While the Group had high hopes, planning to reach 105 members and 130 agents, it fell short, achieving 98 and 122 respectively.

For 2016, Magellan has its sights set on $926 million TTV and is eyeing exceeding $10 million in net income, while at the same time lowering costs to less than eight per cent of income.

Macfarlane told travelBulletin shortly after his CEO address that the group expects its membership to grow but hasn’t pinned down any particular numbers.

He said forecasting what will happen next for competitor groups and what that will mean in terms of industry stability or mass movement of agents is difficult, emphasising that “anything could happen”.

The Group has reached “critical mass” in terms of buying power, allowing it to be “more selective than ever in selecting the right agents for the group,” and grow by spreading the word in “a low key way”.

“If you run the niche strategy where you want a particular kind of agent, you really are better off if people hear about the group, talk to an existing agent in the group and then make an enquiry,” Macfarlane told travelBulletin.

Macfarlane expects some growth to come when contracts expire and agents look at the alternatives.

“They’ll ask themselves ‘has it worked with the group I’ve been with during the contracts period?’ and if that’s a yes then I guess they’ll stay and if not then they might look at what the alternatives are and we’re one of those.”

One obstacle to growth Magellan faces is the “enhanced agent incentives scheme” offered by some other groups.

“That’s code for pay-to-stay… it’s not something that we do.

We want our members to stay with us for as long as the model is working for them… and we’ve continued to grow with that model.

“We don’t need to provide “sweeteners” to join or make payments for agents to stay,” Macfarlane said.

AFTA view Jayson Westbury, chief executive AFTA

KEEPING PACE WITH CHANGES For the many travel agencies that continue to hold an IATA accreditation for the purpose of BSP settlement the news of the pending change to the BSP billing settlement timetable in Australia may have come as a bit of a shock.

In part this is because it is difficult to communicate a process that has taken nearly two years to negotiate, and AFTA’s role in communicating the working arrangements of another organisations’ processes.

For IATA it is also difficult to know when to release information about a proposed change during a protracted negotiation. But nevertheless the simple fact is that credit is becoming far more difficult to get worldwide. Many BSP’s around the globe are making significant changes to settlement times as the airlines and IATA work to close the gap on credit.

The BSP needs to keep pace with the modern payment regimes that are now available.

What this means for Australia is a shortening of the settlement timetable.

From 1 February 2016 the BSP settlement cycle will be shortened by 3 days, meaning that IATA agents and anyone purchasing tickets from an IATA agent will need to remit the weekly BSP funds to IATA earlier. Presently, the 7 day BSP is settled 14 days later meaning it is a 21 day cycle. From 1 February 2018 (two years time) a further 4 days will be taken off the cycle meaning funds will be remitted to IATA 7 days after the BSP closes.

The reason why there is a timetable associated with this change is to allow agents time to organise themselves for the change. At the time of going to print the IATA Passenger Agency Conference (PAConf/38) has not taken place and this process needs to ratify this change and bring it formally into effect. I don’t see any reason why that will not happen.

Australia remains one of the more consolidated markets around the globe with agents finding it simpler and more convenient to ticket via consolidators. This is not the case in all world markets and the value of IATA accreditation is something that is constantly considered by travel agents as they make their strategic and structural decisions about what works best for their business.

As new forms of payment make their way into the travel industry landscape and options become more open and available to new innovative ways to settle with suppliers one of the biggest challenges facing IATA is to ensure that the BSP remains relevant, fit for purpose and an affordable way for agents to settle with airlines knowing that they have the right mutual protections in place for when things might go wrong. To finish it is important to say that the announcement about this change to the IATA BSP settlement cycle might have come as a bit of a surprise to many, but I can assure you that this has been a protracted and prolonged negotiation with the outcome one of mutual compromise.

From 1 February, ‘2016 the BSP settlement cycle will be shortened by three days

’

travelBulletin OCTOBER 2015

7

ISSUES & TRENDS

TIME TO ADAPT TO

NEW BSP With the announcement that IATA’s BSP will be reduced by seven days, agencies need to plan ahead to prevent a credit crunch. STEVE JONES reports.

As transition periods go, the one afforded to travel agents over plans to shorten the payment cycle of air ticket sales would appear to be a generous one.

Under changes announced last month, which followed exhaustive negotiations between the International Air Transport Association (IATA) and the Australian Federation of Travel Agents, IATA’s Billing Settlement Plan (BSP) will be reduced from the current 21 day cycle to 14.

The new arrangements will see the retention of the seven-day remittance period, but the halving of the processing and payment element of the cycle, from 14 to seven days. In short, agents’ credit period is being cut.

While the reduction is hardly good news for IATA-accredited agents and consolidators, they at least have been given plenty of warning. It will be two and a half years before the change is fully implemented, which surely gives even the most disorganised of retailers sufficient time to make the necessary adjustments to their internal processes.

In the phased transition, the 14 day settlement will reduce to 11 days from 1 February 2016, then shortened by a further four days in 2018.

The reduction, which is likely to be trimmed even more over time, will bring Australia in 8

travelBulletin OCTOBER 2015

line with several other markets, New Zealand among them, whose IATA-accredited agents went through the same transformation last year, but without the two-year transition period.

Interest is a free ride ‘income and if you’re not

going to get that anymore, or at least generate less of it, you have to prepare for it

’

Andrew Olsen, chief executive of the Travel Agents Association of New Zealand (TAANZ), described the change as almost a non-event, telling travelBulletin it was “discussed and agreed by agents and airlines at the APJC (Agency Programme Joint Council) over a substantial period of time”.

“Agents were notified of the change in advance to ensure they were financially prepared for the cut over. TAANZ has not received any documented issues since the change,” he said.

While agents in Australia may take heart from Olsen’s words, and though the staged transition will make the upheaval slightly more palatable, the new arrangements will,

nevertheless, be as unwelcome as much as they were inevitable.

AFTA chief executive Jayson Westbury said the biggest issue will be the loss of interest agents earn on trust accounts which hold client monies.

For a retailer the size of Flight Centre, and for the major consolidators, that is likely to be a considerable sum, particularly when you consider the 652 IATA-accredited agents in Australia processed US$13.5b in 2014.

“If you are going to get seven days less interest, that is significant,” Westbury told travelBulletin. “Interest is a free ride income and if you’re not going to get that anymore, or at least generate less of it, you have to prepare for it.

“That’s why the step change period is so important. It will enable agents to think about how they are going to budget for a forecast… on the back of having money in their account for less time.”

Impacts on cash flow are also likely, although Westbury stressed IATA-accredited agents are forbidden from using client money to help fund the running of their business.

At the heart of IATA’s global push for a shorter BSP is the desire to reduce the financial risk of airlines. Put simply, the less money is held by agents and the less is slushing around the BSP system, the

ISSUES & TRENDS less financially exposed they are.

IATA South West Pacific area manager, Ian Lorigan, acknowledged that risk mitigation was one of the key drivers for reducing agents’ credit period.

“The purpose of the change is to reap process efficiencies enabled by a paperless ticket environment, improve cash flow for airlines, while improving risk mitigation by reducing the volume of airline monies in the BSP processing cycle,” he said, adding that the phased implementation will allow for an “orderly transition” and a “smooth assimilation by agents to the new BSP processing cycle”.

Despite the financial loss agents will suffer, Westbury suggested it was hard to argue against IATA’s desire to speed up processes, particularly in an age when technology is facilitating more efficient payment systems.

In addition, while IATA and its member airlines have not been stung too often locally, collapses elsewhere have seen bonds held by failed agencies fall well short of what airlines were owed.

“In part, this change is about tidying up their exposure to credit. The cold hard reality is that airlines want their money faster,” Westbury said. “It isn’t unreasonable

because of the modernised payment methods. And the days of long arm credit in business to business is disappearing fast.

“No IATA agent will say they are happy, but when they stop and think, it is the airlines’

are two years to ‘getThere your act together and prepare your business disciplines for what you now know is coming over the horizon

’

money and they are entitled to it. That’s the way it is. A good fight was put up and the best possible outcome was achieved.”

He added: “We’ve had it good for a long time and the fact we managed to get a two year transition period is world class. Very few other jurisdictions have managed to get a step change.

“There are two years to get your act together and prepare your business disciplines for what you now know is coming over the horizon.”

Yet Westbury’s assertion that money collected by agents is airline money is one not shared by all.

Express Travel Group chief executive, Tom Manwaring, welcomed the spirit of collaborative negotiation between IATA and AFTA but rejected the view that money collected by agents belonged to airlines, arguing it remained the customer’s money.

“In many industries you receive payment on delivery of the product,” he said. “But as a consumer buying a flight, you’re not going to sit in that airline seat for another six months so you’re not using that product. You’re not burning fuel and you’re not eating the airline’s food. If you’re discussing whose money it is, I’d say it belongs to the consumer.”

Manwaring also observed that in the current 21-day BSP cycle, airlines are still receiving their money early considering the average time between booking and flying is 55 days.

“Squeezing the travel industry for those extra days when there are very few defaults on the volumes we are doing is a little mean,” he said.

Be it mean or simply airlines requesting what they are entitled to, change is coming.

Agents, while not doing cartwheels, can console themselves with the knowledge they have plenty of time to adapt.

travelBulletin OCTOBER 2015

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ISSUES & TRENDS

WORLD EXpeditions TURNS 40 Behind any great adventure travel company stands a great story of lost loads, flipped rafts, missing donkeys, delays, outdated computer systems and lost and found clients. And World Expeditions, celebrating its 40th year of operation this month, has seen it all.

World Expeditions began in 1975, when Australian Himalayan Expeditions first offered trekking holidays in Nepal. In those precomputer days, arrangements were made on the phone and reservations were recorded by hand. New routes in distant countries were established and trekked for months before details were read in brochures by travellers.

It wasn’t until almost a month after a raft flipped in Tibet – losing camping equipment and food supplies to a surging river – that head office heard of the mishap. Ingenious guides managed to replace almost everything from nearby villages without much fuss, but the story remains a favourite.

World Expeditions CEO, Sue Badyari, began with the company in 1986 and has seen – first hand – many of the changes that shaped the modern company. She says the advent of the internet was the cause of one of the most profound changes in the industry.

“The internet spelt the demise of blissful ignorance,” Badyari recalls. “Previously, we’d hear of problems like supplies tumbling down mountains and donkeys disappearing overnight at the same time as we heard of how the issues were resolved. Today, we know almost immediately when a group arrive at a suddenly closed border,” she says.

As well as making communication immediate and in real time, the internet also allowed virtually anyone to market guiding services globally, forcing travel companies to differentiate their product from

The internet ‘spelt the demise of blissful ignorance

’

Sue Badyari, CEO World Expeditions

competitors. World Expeditions responded by investing in its guiding program and developing market leading responsible tourism practices and committing to supporting local communities, all of which remain at its core today.

Against the backdrop of global events: terrorism, recession and war; travellers’ thirst for adventure and travel to new destinations has remained.

As World Expeditions looks to the future, the company says it is responsive to emerging destinations and opportunities, crafting new itineraries and forging relationships with international operators to satisfy the sometimes fickle demands of travellers.

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ISSUES & TRENDS

Great Dane laps up Contiki top job Appointed to lead youth specialist touring company Contiki is a dream role for Casper Urhammer. Nearly 12 months into the position, GUY DUNDAS sat down with the Danishborn, Geneva-based e-commerce and digital marketing whiz to see how he’s adapting to the career change and hear about what he’s got planned.

Before taking to the helm at Contiki in November last year, Urhammer spent five years at group buying enterprise Groupon, witnessing the evolution of the brand from the inside, where he rose to managing director of sales and marketing, Australia & New Zealand. Moving up through the ranks at Groupon also gave the Dane a chance to see more of the world and base himself in the US, UK and Europe.

“I was there from its early days as a start-up to an established business to a publically listed company, it was a fantastic journey. I think in five years I matured 25 years.”

While in Australia and heading up Groupon’s growth strategy in Asia, Urhammer “came across” Contiki.

One thing led to another, and nine months of talks later, he found himself assigned to head up the 18-35 year old holiday specialist’s global operation.

Until the end of last year, the iconic youth oriented brand – one of the many travel brands within The Travel Corporation stable – was headed up by former ceo, now chairman David Hosking, supported by managing 12

travelBulletin OCTOBER 2015

directors in Australia, New Zealand, Canada, USA and South Africa.

“Groupon was amazing. We did some amazing things, we grew so fast. Although it was fantastic and amazingly fun, it was great to jump onto a business like Contiki which is so identifiable and stable and

can run the business blindfolded. But as you get older (as I will experience as well), running a youth brand, someone needs to be on par with technology trends and with marketing trends and so forth, and that’s some of the skills I bring onboard. And then of course a can-do attitude, a will to want

I think it’s probably ‘every businessman’s

dream, doing what I’m doing for Contiki, because it’s such a well-known business

Casper Urhammer, CEO Contiki Holidays

takeover to make it a better business,” Urhammer said.

“I think it’s probably every businessman’s dream, doing what I’m doing for Contiki, because it’s such a well-known business.

“I’m coming in to manage a business that is so well run – nothing is broken, cool brand, great product – and tweaking it, making it a little better and growing the business.”

Pressed by travelBulletin about what “tweaks” are planned, he said: “The guy I’m replacing, he started as a bus driver over 40 years ago and he has done incredibly well, but he has been around for many years and

’

to take the brand even further and a slightly different view of certain characteristics.”

Aspects Urhammer will steer include a new website, earmarked for a launch in early 2016. An e-learning specialist program for travel agents is also on the agenda.

“We want to make it easier for our customers to figure out what Contiki is about online. Our website is coming up to nine years old and it needs an overhaul. We are looking into that, and all for the purpose of showing content and exploring what a ‘Contiki’ would be about, so we can send them to the agent to buy a trip,” he said.

ISSUES & TRENDS

ATEC view Peter Shelley, managing director ATEC

Strong product to benefit from weaker dollar There is no doubt Australia is an attractive international travel destination and we have a positive future ahead. The International Visitor Results in June show just how much potential there is in the market with international visitor spend up 10 per cent year on year to a record $33.4 billion.

As an industry, we also have some good tools to work with and we are fighting for those tools to be reinforced and upgraded. Things like the China Australia Free Trade Agreement (ChAFTA) which will help build a stronger overall trade relationship with our largest and highest spending tourism export market. This agreement is something that our industry has united on to defend from a campaign driven by Australian Unions that threatens its delivery.

A recent review of the 40 year old Emerging Market Development Grant program, a program that has supported thousands of Australian businesses to move into new export markets, has recommended an increase in grant funding – a move we support.

While Australia’s popularity as a destination flourishes and we are reaping the rewards of the well placed demand driver campaigns delivered by Tourism Australia and others, we need to continue to build the connections between product suppliers, distribution networks and marketing activities. Our export tourism success will rely on our collective ability to raise awareness, grow intention to travel, positively influence distribution channels and importantly, drive conversion – the most important metric in assessing our effectiveness.

Conversations with members support the key indicators evolving from ATEC’s most recent International Market Monitor which assesses forward booking sentiment. Their ‘on the ground’ intelligence suggests they expect a very positive year ahead and are experiencing growth across most markets, in some cases quite significant growth from both our mature Western markets as well as our growth markets of China and Asia generally, and also emerging markets especially South America.

As in all cases, in order for the industry to maximise its opportunities, it must be a collective effort between industry and Government and all policy settings must recognise the economic benefit of facilitating greater visitation and ensuring that we remove any disincentives to travel to Australia. These include Visa applications and processing as well as a raft of taxes and charges targeting travellers, through to efficient and friendly passenger processing at our gateways - all important considerations.

With the dollar now making Australia an even more desirable destination and encouraging further spend on the ground, we have much to look forward to as our Australian tourism export industry continues its growth path into the future.

Our export tourism ‘success will rely on our collective ability to... drive conversion

’

travelBulletin OCTOBER 2015

13

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business events news

A royal event

By Kris Madden

T

HERE are few more inspirational spots in the world to host a conference, meeting, incentive, or special event than stunning Queenstown.

With such a regal name, it’s fitting that Queenstown has so much to offer in the way of luxury, whether it be heli-skiing, a round at one of the world’s top golf courses, being pampered at a luxury spa, or enjoying awardwinning local food and wine.

Sitting on the shore of crystal-clear Lake Wakatipu against a backdrop of dramatic alpine ranges; it’s rumoured that gold prospectors - captivated by the majestic beauty of the surrounding landscape - gave this now cosmopolitan town its name.

A true four-season destination, different seasons bring crisp, clear blue-sky days and snow-capped mountains in winter; while spring retains the snow but longer warmer days and bright blooms transform the landscape. Summer offers hot dry days and long twilights, and autumn’s brilliant red and

14

travelBulletin OCTOBER 2015

gold colours are internationally renowned.

The region is home to several worldclass hotels and luxury lodges featuring magnificent architecture, plush fittings and outstanding service. Many of these have won international awards and accolades for their quality, consistent service and superb dining.

Vineyards and winery restaurants are some of the best in New Zealand and various ‘cellar

It’s fitting that ‘Queenstown has so

much to offer in the way of luxury

’

door’ operations and wine tours provide plenty of chances to explore the Central Otago region and get an insight into its epicurean culture and award-winning wines.

The Wakatipu Collection members have joined forces to provide an exciting range of Queenstown wine tasting experiences.

There’s golf-wine combos, bike-wine combos, helicopter-wine combos and even jet

boat-wine combos.

With a smorgasbord of outdoor activities, Queenstown is the home of the ultimate adventure bucket list leading to its reputation as the ‘Adventure Capital of the World’. From skydiving, to bungy jumping, canyon swinging, rafting, jet boating, tandem hang-gliding and paragliding, mountain biking, hiking, horse trekking, supercar or four-wheel-driving - it’s no exaggeration to say you can experience more here in a day than most do in a lifetime.

For a more leisurely pace, Queenstown has some great ways to relax and recharge the batteries including lake cruises, scenic flights, hot air balloon rides, gondola rides, wine and art trails, museums, nature parks, and fishing. For the ultimate in relaxation, there are plenty of luxury spa resorts in the area. A variety of international and traditional treatments are on offer to revitalize mind, body and soul.

What makes Queenstown such a popular meetings destination is its commitment to ensuring every group has a truly memorable experience that your delegates will rave about for months.

around queenstown Few destinations offer the variety of experiences that Queenstown does. Here’s just a taste of what’s on offer to create the perfect business event.

Combine a cruise with a slice of high country at Mt Nicholas High Country Farm, located on the western shores of Lake Wakatipu, with 360 degree views to Mount Earnslaw, Glenorchy and the Remarkables mountain range. The Woolshed at Mt Nicholas can be transformed into a themed venue with capacity for up to 150 guests. Only 40 minutes transfer by private charter, the venue is also easily accessible by helicopter. n www.southerndiscoveries.co.nz

Known in particular for its Central Otago Pinot Noir, Queenstown and its surrounding regions are home to more than 200 vineyards producing a wide range of wine varieties. The Queenstown Wine Trail follows the Gibbston River Trail, the same river route as early Maori travellers. This walking tour includes wine and cheese tastings and a picnic along the way. n www.queenstownwinetrail.co.nz

Miles Holden

Voted the Best Golf Resort in Australasia and New Zealand at the World Travel Awards, the Millbrook Resort is overflowing with luxurious charm. The championship golf course offers five different tee positions catering for golfers of every level. Styles of accommodation range from the charming Village Inn studios, spacious suites and cottages to the exclusive Fairway Homes.

There are six golf courses all located within 25 minutes’ drive from downtown, making Queenstown a prime golfing destination.

The Jack’s Point course is one of the world’s most spectacular. n www.millbrook.co.nz

Real Journeys offers a range of unique itineraries for MICE planners. Cruise to Walter Peak on the TSS Earnslaw for team building and a BBQ lunch, then take a scenic flight to Milford for a cocktail cruise on the fiord. Other suggestions include venturing to the nature sanctuary of Stewart Island for a private guided walk and traditional kiwi fish and chips on the beach; or travel back in time with a ‘gold rush’ themed gala dinner at the Colonel’s Homestead. n www.realjourneys.co.nz

Queenstown’s reputation as the adventure capital of New Zealand means it’s the ideal destination for group development and team building, with countless challenges on offer to strengthen your team’s bond. Take your pick from the list of adrenaline-pumping adventure activities on offer from iconic Queenstown bungy jumping to whitewater rafting, river surfing, jet boat thrills and helicopters. n www.glaciersouthernlakes.co.nz

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business events news

Meeting millennials’ meeting needs BORN between 1980 and 2000, ‘millennials’ or Generation Y, are often portrayed as preferring texting to talking and online to real life. However new research shows that millennials value face-to-face networking at meetings and events just as much, if not more, as previous generations.

According to a recently released Skift Report: ‘What millennials want in meetings’, millennials are more inclined to believe that a wide network of professional contacts and continuing industry sector education are more important than advanced degrees or longevity with any one company for professional growth opportunities.

Therefore, meetings and events offer the best possible platform to help them expand their networks, customize their self-education, and personalize their career paths. This is creating a dramatic shift in the meetings and events industry because millennial meeting planners and attendees prefer to learn and network differently than previous age groups.

For many millennials, there is no such thing as ‘before the Internet.’ They expect technology, including fast Wi-Fi, hybrid content, social media conversation, webbased audience participation platforms, comprehensive event apps and other tech to be seamlessly integrated.

Forward-thinking industry leaders are implementing next generation meeting design and event technologies that are more aligned with this younger generations’ preferences.

Modern meeting design integrates 16

travelBulletin OCTOBER 2015

education at every turn with more options for pop-up sessions and open-space learning.

Pre-function space is the new meeting space because it allows for flexibility and encourages more casual conversations.

People in all age groups are questioning the traditional one-way speaker lecture format.

It is estimated that by ‘2021, this generation will

represent 70 per cent of... meeting attendees

’

Planners should add audience participation apps to develop live polls and inspire audiences to ask questions.

The traditional cocktail party is being killed off, or at least transformed. Many millennials say they find these events intimidating because it is unnatural to them to walk up to someone and start a conversation without some kind of shared interest beyond the event theme. Meeting apps where attendees can find people with similar interests are becoming popular; as is mentor pairing with those who have already established their networks over the years.

Millennials want interactive networking opportunities during live meetings that can’t be duplicated online, such as interactive workshops and panels with a lot of give-andtake between the audience and speakers. It’s

also important to make sure attendees have something to share.

Event technology is no longer regarded as some kind of add-on component attached to a meeting, because technology now underpins every part of the meeting experience.

Even though many millennials are still developing their skill sets, they want to feel like their opinion is respected and they’re helping co-create meeting content and experiences, so setting up a millennial task force for special projects will help make the event more attractive to this group.

It is estimated that by 2021, this generation will represent up to 70 per cent of new convention and meeting attendees; and over the next 10 years more millennials will be entering the workforce and moving into executive roles. A strategic focus shift toward the important and emerging millennial demographic is essential to the future success of meetings and events.

Understanding their wants, needs, and expectations in a meeting experience will pay dividends and go a long way toward attracting, engaging, and retaining their loyalty.

Face-to-face meetings drive business, help maintain professional relationships, and promote personal and professional development better than any other medium.

While technology may facilitate the way we work, looking someone in the eye, smiling, and shaking hands creates the kind of human connection that cannot be replaced in any way.

EEAA View

Joyce DiMascio, chief executive Exhibition and Event Association of Australasia

NZ ICC gets go ahead The NZ tourism industry is looking forward to seeing progress on the International Convention Centre now it has received resource consent approval.

The new international-scale convention centre will create substantial economic benefits for the whole country, Tourism Industry Association New Zealand (TIA) chief executive Chris Roberts says.

“We are pleased to see progress on this vital piece of infrastructure to accelerate the growth in tourism’s contribution to the New Zealand economy,” says Roberts.

Business events were highlighted as a high-value growth area for tourism in the industry’s Tourism 2025 growth framework, which aims to almost double total tourism revenue to $41 billion over the next decade.

“Cities all over the world are investing in convention centres because they can see the potential, but New Zealand has been lagging behind. The International Convention Centre will allow us to target a valuable new sector of the convention market that we have not previously been able to accommodate.”

With many international conventions taking place during New Zealand’s off-peak season, the International Convention Centre will help increase visitor numbers at times when there is currently spare capacity, supporting jobs and businesses in the tourism industry.

Being able to host medium to large scale events will see accommodation bookings spread among Auckland hotels and provide flow-on benefits to a range of business sectors, including retail, hospitality and transport.

headlines 20 Aug Events at NSW Parliament 24 Aug Perth CB pushes for funding 27 Aug P&O MICE push pays off 31 Aug APT business events offering 03 Sep EEAA awards expanded 07 Sep Luxperience 2015 kicks off 10 Sep Planners generational shift 14 Sep “Best ever” Luxperience 17 Sep PCOA seals Malaysian pact

THE BENEFITS OF BUSINESS EVENTS There is one thing the exhibition and events sector is good at and that is at adapting to change and opportunity. And it couldn’t be truer than now.

A wide-range of factors are influencing the business environment in this sector – global and national economic conditions, post-mining and resources boom adjustments, emerging new industries – and major changes to the way people do business and communicate.

If all of this wasn’t enough, we have also accommodated the business disruption caused by the redevelopment of Darling Harbour in Sydney.

With just one year to go before the commencement of test events at ICC Sydney in September 2016 ahead of the official opening in December 2016, the excitement is palpable. Anyone who has been anywhere near Darling Harbour knows the speed at which the structures are taking shape.

Indeed, there is a total transformation of Sydney occurring and this has to be good for the whole country. When our cities are thriving and infrastructure is renewed, everybody wins.

With the opening of Barangaroo Reserve in late August a beautiful new headland has been returned to the community. From this vantage point it is possible to see the scale of the renewal of the western harbour in Sydney. Let there be no doubt, Sydney will be revitalised as a result of the major infrastructure investments of the Baird Government.

In early September, NSW Premier Mike Baird proudly declared the redevelopment of Darling Harbour was on-time and on budget.

This is a great achievement and a tribute to the hundreds of workers whose labour and skill is transforming Sydney.

We are being very well served by the temporary facilities at Glebe Island and the venues around the city and country that are hosting relocated shows following the closure of the Sydney Convention and Exhibition Centre.

The opening of the new facility in Sydney and the expansion of Melbourne’s exhibition facilities at the MCEC couldn’t

come soon enough.

Trade and consumer exhibitions are major drivers of business activity and contribute substantially to the profitability of venues and have a wide economic footprint.

The EY study produced for the Business Events Council of Australia and launched at AIME 2015 provided new vital data on the scale of the exhibition sector.

EY reports in 2013/14 there were 2,157 exhibitions staged in Australia attracting 9.3 million visitors and 65,000 exhibitors.

These numbers show the scale of the expo sector – more significant is that our sector stimulated $3.1 billion dollars in expenditure and direct value-add of $1.5million and generated over 21,000 fulltime equivalent jobs.

Australia benefits ‘enormously from a

thriving business events sector and expos are a key part of it

’

We continue to take this message about the Power of Exhibitions to Governments and their agencies – Australia benefits enormously from a thriving business events sector and expos are a key part of it.

Without exhibitions, the profitability of our major venues would suffer. The EEAA Market Monitor for 2014 shows that for some venues, expos generate over 30 per cent of their business. For some venues, this is trending upwards.

Trade and consumer expos are important drivers of business, trade, investment, employment, knowledge sharing and of course, the visitor economy.

If you are working in the world of exhibitions, know that what you deliver is vitally important to the economy of Australia.

In challenging economic times – or during this period of enormous change – Australia’s exhibition and events sector continues to demonstrate its resilience and adaptability. n For more information: www.eeaa.com.au

travelBulletin OCTOBER 2015

17

Brochures

18

ABERCROMBIE & KENT’S new Africa & Arabia brochure is out with a range of private and small group journeys across the continent. New to the portfolio for 2016 is a 15-day hosted journey to Ethiopia focusing on the country’s history, culture, wild landscapes and fascinating tribal heritage. There is a luxury small group migration safari through Kenya and Tanzania as well as a series of short add-ons to South Africa’s Cape Winelands, the Kenyan Coast, the Laikipia Plateau and Mauritius.

INFINITY’S Nomad Africa Adventures brochure has hit the shelves with 32 pages of guided African tours ranging from seven to 55 days in length and covering itineraries such as gorilla watching, the Okavango Delta, Serengeti, Victoria Falls, Chobe, Zanzibar and more. Nomad allows guests to choose between camping and lodge accommodation ranging from two and four-star. African-owned Nomad is one of the largest African adventure touring companies and boasts the newest fleet of trucks and vehicles in Africa.

THE MOORINGS 2016 brochure features nearly 100 pages of destinations, beautiful yachts, and everything your clients need to pick the perfect sailing, including updated region maps and icons; new ‘how does it work’; and ‘what’s included’ pages.

There’s a selection of crewed, skippered, bareboat or power charter yacht holidays in the Mediterranean, Caribbean, the Americas, Seychelles, Thailand, Tahiti and Tonga, as well as a new fully-crewed power catamaran holiday in the British Virgin Islands and Sardinia.

APT has announced an expansion of its Cape York and Outback Wilderness Adventures program for 2016. Agents can offer clients a choice of four new tours, with APT’s portfolio now offering a total of 14 different 4WD land tours across QLD, South Australia, Northern Territory and Western Australia.

Additionally, APT has also announced a long list of exciting new Signature Invitations. APT is also offering exclusive Great Barrier Reef charters with Coral Expeditions and announces its partnership with Australia Zoo.

WORLD EXPEDITIONS has launched its 2015-16 Asia brochure packed with more than 120 exciting adventures, including a new family adventure, new multi-activity itineraries, trekking expeditions and cultural journeys. Old favourites such as Bike, Hike and Kayak Northern Vietnam, Vietnam by Bike and Tim Cope’s Mongolian Adventures all remain, and new adventures have been added in response to emerging destinations and types of travel, including treks in Iran and Tajikistan; and a new destination: North Korea.

TRAVELMARVEL has released its new Africa 2016 program, offering a range of itineraries covering South Africa, Zambia, Botswana, Kenya and Tanzania.

Agents can offer clients a choice of seven tours ranging from 11 to 29 days, all of which offer the flexibility to be extended with a two night stay on the elegant Blue Train, four nights discovering mountain gorillas in Rwanda or four days enjoying the white sands and history of Zanzibar. Accommodation comprises hand-picked lodges, camps and hotels.

BENCH INTERNATIONAL has released its 2016 Africa brochure, introducing new product in Kenya, Tanzania and South Africa, on top of the properties and itineraries that proved popular in 2015.

Jam-packed with hand-selected tours and properties, the 2016 brochure includes new destinations, as well as exciting new self-drive holidays in both South Africa and Namibia. The 11-day ‘1000 Views of Madagascar Safari’ allows discovery of the best of Madagascar complete with lemurs, colourful tribes, tropical beaches, and ever-changing scenery.

INFINITY HOLIDAYS is offering a suite of ‘Escapes’ packages created by Flight Centre that offer value, easy access and a superior product. Destinations included in the Beach Escapes Packages are Fiji, Bali, Koh Samui, Phuket, Mauritius, Hanoi and Da Nang.

The packages vary in length from three to 14 days and allow customers to choose from an array of hotels and tours. Customers also receive a concierge call before departure and a credit towards their next ‘Escape’ on their return.

travelBulletin OCTOBER 2015

Technology

guest comment With managing director of Amadeus IT Pacific Tony Carter

CUSTOM[ER] MADE: BUILDING TODAY’S TRAVELLER EXPERIENCE Remember the days when travel meant simply choosing a destination, buying a ticket and boarding the plane? Today, travel is an experience in itself, one that revolves entirely around the customer; one size no longer fits all. In much the same way as a local coffee shop builds loyalty by placing the customer at the center of the purchase; “a muffin with your coffee as usual today George?”, travel agents are fast adopting a similar approach so that on the last day of your work trip, you can check out some museums before your flight back - without needing to say a thing. It’s all about understanding the traveller.

I often speak about the Age of Traveller Power, a period whereby the rules of travel are dictated by the end consumer. But what does this mean for travel providers?

More than ever, the industry needs to adapt its approach to appeal to different Traveller Tribes who are searching for unique and personalised travel experiences.

That is, the traveller must be treated and understood as more than a set of demographics.

Travel agents, airlines, hotels and even airports now need to truly understand traveller wants, values, and behaviours, and adopt technology faster than ever before to survive and thrive.

Earlier this year, Amadeus identified six Traveller Tribes that will shape global travel by 2030: Cultural Purists, Ethical Travellers, Obligation Meeters, Reward Hunters, Simplicity Searchers and Social Capital Seekers. We then wanted to find out the motivations and purchasing behaviours of these traveller tribes and the essential areas for greater collaboration with travel management intermediaries and suppliers to deliver a more rewarding journey for both the traveller and the industry. In the age of Big Data, this nuanced psychographic approach to segmentation offers new opportunities for travel agents

and travel providers to understand travellers and remain relevant in today’s hyper-dynamic environment.

Whether you are considering questions such as ‘what level of personalisation should we offer?’ or ‘how can we improve the purchasing experience?’, this research offers a comprehensive framework to better understand, prepare for, and cater to, emerging traveller segments. So how will purchasing habits evolve and how can travel agents respond to these emerging traveller behaviours to build a more rewarding and connected traveller journey?

The point of differentiation for travel agents is that extra layer of options and recommendations that when offered to the traveller, truly excites them. For the Obligation Meeter, a bundled experience could mean a world of difference whereas the Social Capital Seeker may appreciate a mobile data plan to ensure they can check-in on social media wherever they are. That’s where technology comes in.

Until recently, the traveller journey ended for travel agents as soon as the traveller booked and paid for their flights, accommodation and transfers. However, global mobile connectivity means the traveller is increasingly accessible at all times throughout their journey and this opens up huge opportunities for travel agents to reinforce customer relationships ‘on-trip’ and even ‘post-trip’ with personalised service and tailored offers.

Successful travel agents are recognising the enormous value in providing the extras that delight the customer and create a memorable brand experience. Not only will this mean building a more rewarding journey for customers, it will also contribute to stronger brand loyalty, better customer experience and higher profit margins.

To download the Traveller Tribes 2030 whitepaper please visit www.amadeus.com/tribes2030

mobile connectivity means ‘theGlobal traveller is increasingly accessible at all times throughout their journey and this opens up huge opportunities for travel agents to reinforce customer relationships...

’

Cover

Running a company is a big job, and no-one would suggest the boss shouldn’t be well paid. But how well paid? KRIS MADDEN & BRUCE PIPER check out the changing fortunes of some of the industry’s best paid executives.

The wheel of

fortune

20

travelBulletin OCTOBER 2015

Cover

T

he bosses of Australia’s major listed travel companies have experienced a roller coaster ride of riches in 2015 – with some dropping off the travelBulletin ‘Million Dollar Club’ list of travel agency executives with seven figure incomes - and others being inducted into the club. Qantas CEO Alan Joyce was the biggest winner with a massive package worth almost $12 million – but executives at both Helloworld and Flight Centre all took a haircut as the businesses failed to achieve targets.

Over at Helloworld, there’s perhaps little surprise that managing director and chief executive officer, Elizabeth Gaines has tendered her resignation and will depart before the end of the year. She took a pay cut of almost 50% during 2014/15, with a package worth $640,204 seeing her slip from ‘The Club’ this year. And forfeiting 100 per cent of her potential annual bonus.

Gaines and her predecessor, Rob Gurney, both earned seven figure pay packets in 2013/14; with Gaines taking home a cool $1.1 million. It’s a different story this year, with the CEO receiving no bonus and her base salary eroded by some $90,000 due to the

lapsing of “performance rights” because of her resignation, meaning Gaines took home about $640,000.

The curious outcome for Helloworld was that the company’s highest paid executive in 2014/15 was GM Air Services, Russell Carstensen, who was still a long way out of the million dollar club with a total package of $667,938 putting him just ahead of Gaines.

And the company’s annual report also confirmed that Gurney took home more than $250,000 during the year despite stepping down as CEO in March 2014. Although no longer playing an active role in the company, he was still on the books due to the six month notice period in his contract. That also meant he technically stayed long enough for the payment of a sign-on bonus negotiated when he was appointed in 2012, in the form of 815,217 fully paid ordinary shares – worth about $236,000 - which were awarded on 29 August 2014.

Helloworld posted an adjusted profit before tax of $6.9 million, with the previously announced $205.3 million noncash goodwill write-down bringing the overall result to a hefty loss of $198.4 million. The company said the adjusted profit before tax was a “significant improvement” on the previous year’s result, which was a $1.7 million loss.

The group’s TTV declined three per cent to $4.69 billion, while revenue also dipped four per cent to $279.2 million.

The “adjusted EBITDAI” figure used by the board to assess the financial performance of the business dived 32 per cent to $27.5

million, down from $40.6 million in the previous corresponding period.

Gaines said the company was anticipating a substantial increase in profit next year, claiming Helloworld is now positioned for long-term sustainable growth “with a strong balance sheet, a stable network of highperforming agents [and] a growing and strategic online presence”.

THE MILLION DOLLAR CLUB Executive 2014/15 Renumeration Alan Joyce, Qantas $11,884,000 Simon Hickey, Qantas $ 4,398,000 $ 3,926,000 Gareth Evans, Qantas Jayne Hrdlicka, Qantas $ 3,905,000 Christopher Luxon, Air NZ NZ$ 3,824,280 $ 3,576,000 Lyell Strambi, Qantas John Borgetti, Virgin Australia $ 2,840,000 Lesley Grant, Qantas $ 2,269,000 Sankar Narayan, Virgin Australia $ 1,669,000 John Guscic, Webjet $ 1,562,520 Gary Hammes, Virgin Australia $ 1,482,000 Chris Galanty, Flight Centre $ 1,376,511 Bob East, Mantra $ 1,271,000 Merren McArthur, Virgin Australia $ 1,193,000 Neil Thompson, Virgin Australia $ 1,174,000 Mark Hassell, Virgin Australia $ 1,134,000 Judith Crompton, Virgin Australia $ 1,053,000 IN: Alan Joyce, Simon Hickey, Gareth Evans, Jayne Hrdlicka, Lyell Strambi, Lesley Grant (Qantas) Christopher Luxon (Air NZ) Bob East (Mantra), Gary Hammes, Neil Thompson, Mark Hassell, Judith Crompton (Virgin Australia), John Guscic (Webjet) OUT: Elizabeth Gaines, Rob Gurney (Helloworld), Melanie Waters-Ryan (Flight Centre)

Carstensen was the only executive to receive a bonus, pocketing an extra $100,000 as a result of QBT winning the Whole of Australian Government contract in December 2014. Head of wholesale Peter Egglestone earned $347,801, scaled back slightly from the $373,392 he took home last year. Chief financial officer, Jenny Macdonald, appointed in August 2014, takes Carstensen’s position as the third highest paid executive in the Helloworld team with a $557,000 package.

Interestingly the Helloworld annual report also confirms significant changes to the company’s remuneration framework for 2016 following feedback from the previous year’s report, with no increases for senior executives and stronger performance conditions for short-term incentives, including no bonuses unless the company achieves targets for earnings per share.

Continues over page travelBulletin OCTOBER 2015

21

Cover Continues from previous page Over at the other camp, Flight Centre announced a $366.3 million statutory profit before tax based on record sales of $17.6 billion. However, the company confirmed a market slowdown in Australia which in turn led to lower than normal TTV growth. The Australian business generated more than $250 million in EBIT for the third consecutive year, and was again the company’s main profit and sales generator. Flight Centre sees global growth prospects during 2015/16, and will target an underlying pre-tax profit of between $380 million and $395 million for the 2015/16 financial year.

Despite this, senior Flight Centre executives earned less during 2015, when “bottom-line results did not meet initial expectations” than in 2014 when the company recorded solid profit growth, with remuneration committee chairman John Eales highlighting the fact that CEO Graham Turner had been in the past judged “Australia’s best value CEO”.

Collectively Flight Centre’s six key management personnel earned $5.64 million this financial year. But only one of them – Chris Galanty, MD for UK and South Africa – remained in the Million Dollar Club, boosting his package by about $250,000 to $1.376 million. Galanty was the highest paid Flight Centre executive, taking home more than twice as much as managing director Graham

22

travelBulletin OCTOBER 2015

Turner whose package was worth $541,000.

Chief operating officer Melanie WatersRyan dropped out of the Million Dollar Club with remuneration of $986,000 while the company’s corporate operations chief Rob Flint also took a hit, with a package worth $580,000 down from $795,000 last year.

Company secretary and AFTA director David Smith was just outside the Million Dollar Club with a package worth $962,000, up more than $200,000 on 2013/14.

Of course the statutory remuneration is only part of the picture for Flight Centre,

Collectively Flight ‘Centre’s six key

management personnel earned $5.64 million this financial year

’

with several of the senior team also holding significant shareholdings. In particular Turner’s stake of more than 15 million shares garnered dividends of just over $23 million during the year, and even with the recent decline in the company’s shares is still worth more than $560 million.

Scott Blume, boss of online travel agency Wotif, who entered the Million Dollar Club last year has dropped off the list following the delisting of Wotif on the ASX in November 2014, after being acquired by Expedia Australia Investment Pty Ltd – meaning details of his salary package are no longer public.

However he has been replaced on this year’s list by Mantra Group CEO and executive director, Bob East, following the company’s

listing on the ASX in June 2014. East’s total remuneration of $1.27 million, comprising cash salary of $580,000, annual and long service leave payments, superannuation, and a whopping cash bonus of just over $600,000, sees him join the Million Dollar Club this year.

His shares in the company totalled 2,315,638 at the end of the financial year.

Again almost all of the senior executive team at Mantra earned less in 2015 than in the previous year, despite FY2015 proving to be another successful year in the development of the company with a focus on portfolio growth in strategic aligned properties and destinations aimed at increasing shareholder value. This has been endorsed by the addition of 11 new properties to the portfolio, a well-supported capital raising of $56.7 million in March 2015; and an increase in Mantra Group’s share price by approximately 90 per cent, according the company’s annual report.

An outstanding performance was recorded by share market darling Corporate Travel Management (CTM) which posted a TTV (total transaction value) of $2.65 million, 92 per cent higher than the previous year driven by the integration of international acquisitions and organic growth in all markets. Travel income of $196.4 million was 80 per cent higher than the previous year. CTM’s statutory net profit after tax of $26.4 million for the year to 30 June 2015 represents a 67.1 per cent increase, compared with $15.8 million in the previous year. CTM’s total assets of $440.4 million at 30 June 2015, are an increase of $192 million, or 77.3 percent on the previous year. With a market value of more than $1.1 billion, it’s now firmly established in the benchmark S&P/ASX200 index alongside Flight Centre. In Australia and New Zealand, underlying EBITDA grew 19.5 per cent to $25.7 million on a 13.7 per cent organic increase in TTV, underpinned by internal productivity gains.

Cover Managing director, Jamie Pherous, holds 21.5 million shares in CTM, a stake now worth about $216 million. Pherous received $671,988 in remuneration along with about $3.4 million in dividends.

CTM’s market share in Australia, which is estimated to be about 11 per cent, has been creeping up through client wins even though the overall size of the market hasn’t grown.

Online travel agency, Webjet experienced a dramatic improvement in its fortunes in 2014/15, posting a growth in TTV of $299 million from $967 million to $1.266 million representing a 31 per cent increase over FY14. Revenue increased by $20.5 million to $119.1 million, representing a 21 per cent increase.

All three of its executive officers received bonuses, reinstating chief executive John Guscic’s position in the Million Dollar Club this year.

Chief operating officer Shelley Beasley, who took home a much lighter pay packet last year as a result of missing out on a bonus, this year received a $99,334 bonus, earning a total of $470,286. However again despite a stellar performance the Webjet team didn’t receive all of their targeted bonus income, because the company didn’t achieve its ambitious budget.

On the aviation front, Qantas performed strongly in 2014/2015 to achieve its best result since before the Global Financial Crisis, enabling the group to both strengthen its balance sheet and resume shareholder returns.

The airline paid its chief executive, Alan Joyce, an eye-popping $11.8 million for his role in the turnaround. Joyce’s pay packet represents an increase of 490 per cent or nearly $10 million more than last year, when the Qantas Group recorded a $2.8 billion loss. The CEO’s statutory remuneration for 2014/2015 totalled $6.70 million. The CEO’s actual remuneration outcome, which includes $4.56 million of growth in the value of the vested shares to the CEO under the Long Term Incentive Program, totalled $11.88 million. Joyce also retains 5,379,721 shares in Qantas, up from 2,906,202 at the end of last financial year. This took him well and truly to first place on the Million Dollar Club table, ahead of last year’s leader, Flight Centre’s Chris Galanty.

Lyell Strambi and Simon Hickey, the former heads of Qantas Domestic and International, would have had their departures eased with hefty termination payments of $483,000 and $833,000 respectively – not to mention multi-million dollar pay packets for the eight months of the financial year prior to their stepping aside.

Across the ditch Air New Zealand CEO Christopher Luxon also had a good year, with a base salary of NZ$1.4 million and a bonus worth NZ$1.54 million, which along with other benefits saw his total package worth NZ$3.82 million.

The airline paid its chief executive, Alan Joyce, an eye-popping $11.8 million for his role in the turnaround

‘

’

Continues over page MANTRA GROUP 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

Bob East

$580,100

$690,911 $1,271,011 $563,750

Steven Becker

$395,600

$465,440 $ 861,040 $384,375 $580,048 $ 964,423

Kent Davidson

$259,700

$241,667 $ 501,367 $244,670 $309,713 $ 554,383

Thomas Johnsson

$793,305

$1,357,055

$310,100

$231,594 $ 541,694 $301,311 $262,843 $ 564,154

Michael Moret-Lalli $224,300

$465,855 $ 690,155 $217,933 $577,649 $ 795,582

Ken Minniken

$-

$-

00

00 $-

00 $ 4,443 $382,080 $ 388,523

FLIGHT CENTRE 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

Graham Turner

$282,225

$ 258,783 $ 541,008 $282,225

$331,275

$ 613,500

Rob Flint

$207,225

$ 372,843 $ 580,068 $207,225

$587,994

$ 795,219

Melanie Waters-Ryan $231,217

$ 754,910 $ 986,127 $232,225

$850,222

$1,082,447

Andrew Flannery

$282,225

$ 258,783 $ 541,008 $282,225

$331,275

$ 613,500

Chris Galanty

$282,752

$1,093,759 $1,376,511 $265,440

$907,973

$1,173,413

David Smith

$297,825

$ 664,300 $ 962,125 $244,148

$500,699

$ 744,847

CORPORATE TRAVEL MANAGEMENT 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

Jamie Pherous

$403,982

$268,006 $671,988

$300,000

$18,428

$318,428

Laura Ruffles

$391,666

$349,146 $740,812

$293,269

$45,634

$338,903

Steve Fleming

$298,000

$256,864 $554,864

$260,000

$78,903

$338,903

Larry Lo

$430,948

$126,869 $557,817

$165,748

$ 5,349

$171,097

Romeo Cuter*

$533,252

$-

00

$533,252

$ 95,572

$-

00

$ 95,572

Chris Thelen*

$260,619

$-

00

$302,405

–

–

–

* Romeo Cuter resigned as CEO North America on 15 May 2015. ** Chris Thelen was appointed as CEO Europe on 2 January 2015.

WEBJET 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

John Guscic

$838,130

$724,390 $1,562,520 $676,084

$308,127 $984,211

Shelley Beasley

$359,099

$111,187 $ 470,286 $370,355

$ 11,111

$381,466

Michael Sheehy

$289,033

$ 74,931 $ 363,964 $223,613

$ 20,684

$244,297

HELLOWORLD 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

$718,144

-$ 77,940 $640,204

$646,404

$459,212

$1,105,616

Russell Carstensen $539,182

Elizabeth Gaines

$128,756 $667,938

$516,740

$341,240

$ 857,980

Peter Egglestone

$305,917

$ 41,884 $347,801

$287,474

$ 85,918

$ 373,392

Greg Leighton

$309,914

$ 16,255 $326,169

$322,989

$101,698

$ 424,687

Jenny Macdonald* $506,801

$ 50,791 $557,592

$-

Rob Gurney**

$ 20,321 $253,467

$821,283

$233,146

00 $- 00 $$382,025

00

$1,203,308

** Rob Gurney resigned as CEO on 28 March 2014 but continued to be employed until 28 Sept 2014.

QANTAS 2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses

Alan Joyce

$2,000,000 $9,884,000 $11,884,000 $2,054,000 -$45,000

$2,009,000

Tino La Spina*

$ 279,000 $ 435,000 $

714,000 $-

00 $-

$-

00

Andrew David** $ 277,000 $ 386,000 $

663,000 $-

00 $-

$-

00

Gareth Evans

$ 981,000 $2,945,000 $ 3,926,000 $ 981,000 $69,000

$1,050,000

Lesley Grant

$ 781,000 $1,488,000 $ 2,269,000 $ 782,000 $16,000

$ 798,000

Jayne Hrdlicka

$ 981,000 $2,924,000 $ 3,905,000 $ 982,000 $61,000

$1,043,000

Simon Hickey

$ 860,000 $3,538,000 $ 4,398,000 $ 982,000 -$34,000

$ 948,000

Lyell Strambi

$ 654,000 $2,922,000 $ 3,576,000 $ 982,000 $95,000

$1,077,000

* Tino La Spina was appointed chief financial officer from 1 March 2015. ** Andrew David was appointed CEO Qantas Domestic from 1 March 2015. *** Simon Hickey was CEO Qantas International until 28 February 2015. **** Lyell Strambi was CEO Qantas Domestic until 28 February 2015.

travelBulletin OCTOBER 2015

23

COVER Continues from previous page

Virgin Australia

Virgin Australia CEO John Borghetti was also well and truly in the Million Dollar Club – albeit not to the same extent as his chief rival Alan Joyce at Qantas. Perhaps reflecting the fact that Virgin Australia is still making significant losses, Borghetti received no increase in his $1.5 million base pay packet, but the pain of this was probably eased somewhat by a $1 million cash bonus, which along with other benefits and incentives boosted his pay packet to $2.84 million. He also received $37,500 in director’s fees but elected to donate this to a well-deserving charity.

Despite the airline’s losses, the Virgin Australia board decided to reward its senior team “given their success in continuing to position the company for long term sustainable performance and shareholder value” taking into account corporate scorecard performance and the achievement of individual performance objectives.

Borghetti wasn’t the only Virgin Australia executive to crack the million, with all five of his most senior staff also exceeding the magic number. Chief commercial officer Judith Crompton took home $1.053 million; chief operating officer Gary Hammes earned $1.482 million; chief financial officer Sankar Narayan earned $1.669 million; chief customer officer Mark Hassell took home $1.134 million; Virgin Australia regional airlines group executive Merren McArthur earned

Despite the airline’s ‘losses, the Virgin Australia board decided to reward its senior team

’

24

travelBulletin OCTOBER 2015

2014/15

2013/14

Base Salary Incentives Total Base Salary Incentives Total

& bonuses & bonuses John Borghetti

$1,531,000 $1,309,000 $2,840,000 $1,669,000 $1,107,000 $2,776,000

Sankar Narayan

$ 745,000 $ 924,000 $1,669,000 $ 749,000 $ 660,000 $1,409,000

Mark Hassell

$ 470,000 $ 664,000 $1,134,000 $ 476,000 $ 417,000 $ 893,000

Judith Crompton

$ 464,000 $ 589,000 $1,053,000 $ 503,000 $ 479,000 $ 982,000

Neil Thompson

$ 483,000 $ 691,000 $1,174,000 $ 482,000 $ 470,000 $ 952,000

Gary Hammes

$ 577,000 $ 905,000 $1,482,000 $ 256,000 $ 252,000 $ 508,000

Merren McArthur

$ 444,000 $ 749,000 $1,193,000 $ 466,000 $ 660,000 $1,126,000

$1.193 million; and Velocity Frequent Flyer CEO Neil Thompson took home $1.174 million. Tigerair CEO Rob Sharp, who became part of the Virgin Australia executive team when the airline acquired the remaining stake in the low cost carrier for $1 in October 2014, had a package worth $749,000 for the last nine months of the financial year.

The wheel of fortune didn’t spin quite so favourably for executives at Regional Express, where general manager of Network Strategy & Sales, Warrick Lodge, took home a total of $183,587 – less than a tenth of Borghetti’s package and about one sixtieth of Joyce’s total income. Putting that into perspective, Alan Joyce earned Lodge’s annual income every single week. REX chief operating officer Neville Howell had a package worth $229,015, while REX executive chairman Lim Kim Hai, who’s also a major shareholder in the company, took no salary at all and elected to forfeit his director’s fee once again, meaning he has taken no payment for being on the board since November 2008 “in the light of the continuing difficult environment”.

Your Travel business

Are TMCs losing their way?

F

or a while now, years, in fact, the very existence of travel management companies has been questioned by corporations and travellers alike. So much technology has evolved over the past few years, commoditising product offerings and giving travellers choice and convenience, that old necessities like having someone to talk to is now considered a bit passé.

The ‘good old days’, pre-anything that looked like a smart phone, gave TMCs easy answers to the question why? We book all of your travel, we’ll give you reports, we’ll change your travel plans when you need to, we’ll have someone there when you need us and you can’t do any of it without us. As easy as that model seemed, it was flawed once an RFT went out and the only winner, loser was whoever spiralled lowest on the transaction fee page, giving credence to the question above.

So what’s the concern for TMCs? Is it the shift and development of enhanced technology? Is it the commoditisation of their product offering or something a bit more ethereal? I contend that for many TMCs, it’s a loss of purpose. I can see the eyes rolling back now, as visions of philosophy 101, white boarding mission statements and all things wishy-washy being applied to a business model. I think purpose is the DNA of a business and if you and your staff don’t understand the reason for being, then how can your clients expect to know you, other than as a supplier.

The standard offerings of TMC ‘service’ is not changed by adding superb or personalised, ‘value’ is not enhanced

by great or superior and ‘solutions’ are not elevated because of efficiency or effectiveness. Adjectives and marketing hyperbole do not differentiate you from others saying the same things differently. What differentiates you is your purpose and how you carry out that purpose. For a TMC, the

should do more ‘thanTMCstransact travel arrangements at the lowest price ...

’

question of benefit for your client should be the only question you ever ask. What is the benefit of using us over the company down the road? Seems like a simple question but if you ask “what is the benefit of that?” for every company strategy and development process, then you’ll be able to show you are there for more than money and are trying to make a difference.

Instead of superior service, always to be judged on price, or enhanced value, different for every client you encounter, why not go to the core of what you are trying to do and that is ‘get your client to their destination and back home safely’. If that becomes part of your core purpose, then even your staff understand their role and purpose in every transaction. As a result of what they do, they know they are making a difference to the family of that traveller, to the traveller and how the company’s purpose pays off in client satisfaction. If you then add process

efficiencies to that purpose, your value becomes easier to understand and you have a client for life.

Bakers do more than bake bread, they create comfort through the eating and sharing of bread. Nike does more than make shoes, they inspire and create a desire to move. Starbucks does more than sell coffee, they nurture and amplify community spirit by being a focal point to meet. TMCs should do more than transact travel arrangements for the lowest possible price, they should provide comfort in the knowledge you are dealing with reputable people, they should enhance safety by using the best tracking and reporting technology available, they should take away the anxiety of being outside your comfort zone and away from loved ones by being in constant contact throughout your journeys and they should have a shared purpose with their clients, built on a promise to never let them down. You may do all of these but does your client know that or do they deal with you because you won the price war?

It’s a simple question, what is the benefit of that?

Oliver Tams is director of strategic partnerships for Think Procurement and has more than 30 years’ experience in the travel industry, especially in corporate travel. Ollie has worked with a range of companies from start-ups to established businesses, including GDS Amadeus, and leading the TMC division for Business Select.

travelBulletin OCTOBER 2015

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CRUISe Report

Cruise Down Under’s 2015 Conference

By Bruce Piper Cruise Down Under (CDU) has confirmed ambitious plans to significantly boost its membership in the next 12 months, with the organisation’s recent 19th annual conference in Darwin hailed as a major success. More than 100 delegates took part in the event which was co-sponsored by Tourism NT and Tourism Top End, showcasing the territory’s capital and its port facilities which are ideally placed to benefit from the massive potential of the Asian cruise market.

CDU attracted a range of high profile speakers from across the globe who intrigued delegates with their insights into cruise operations, with many attendees focused on building cruise-ready land product to help their destinations make the most of cruise

CDU delegates from WA showing their state pride.

attracted a range ‘ofCDU high profile speakers

from across the globe who intrigued delegates with their insights...

’

visitors. A highlight was a presentation from Royal Caribbean Cruise Line’s Rich Pruitt, who spoke on the global cruise industry’s strong commitment to environmental sustainability; while Michael Hackman from Genting Hong Kong gave an insight into the company’s recent acquisition of Crystal Cruises and its stunning growth aspirations – as well as big plans for Star Cruises in the Chinese market which include new builds featuring massive on-board wellness centres.

Darius Mehta, Silversea Cruises vice president of air and land programs, spoke about the company’s ongoing quest to offer passengers high quality shore experiences; while Crystal Cruises vice president of deployment, Claudius Docekal highlighted key factors which drive cruise line decisions about where they will operate their vessels.

A presentation from Grant Gilfillan of the Port Authority of NSW raised the thorny issue of Sydney’s limited capacity and urged a cooperative approach from across the industry to come up with a solution.

The conference also gained perspective from “across the ditch”, with Raewyn Tan from Cruise New Zealand speaking about the organisation’s opposition to the planned imposition of a new border clearance levy 26

travelBulletin OCTOBER 2015

Raewyn Tan, Cruise New Zealand

Some of the Cruise Down Under executive team

which is set to significantly impact the cruise industry as the NZ government moves to a cost-recovery model likely to hamper the sector’s growth.

The event saw CDU chairman Stephen Bradford release details of the organisation’s 2014-15 Economic Impact Report, which confirmed that cruise ships visiting Australia delivered a whopping $1.9 billion in direct expenditure. The year saw records achieved across the board, with 874 ship arrivals including 427 lucrative turnarounds, where new passengers embark. Ships visited a total of 30 ports across the country during the year, and employment was also a key focus, with the report detailing a 10 per cent increase in direct jobs in the cruise sector to more than 9200.

Overall economic output was $3.3 billion, up 5.3 per cent despite a decline in total port-related expenditure due to falls in bunker fuel costs during the year. Passenger spending increased to just over $900 million, with CDU ceo Jill Abel saying the figures

show that Australian cruising is “continuing to be a growth industry, with strong economic benefits for all involved and positive signs that Australian ports still feature highly on cruise line itineraries”.

Going forward prospects for the sector are very bright, with 2015/16 set to see seven new vessels arrive in Australia including Holland America’s Noordam, Princess Cruises’ Golden Princess, Explorer of the Seas from Royal Caribbean, Costa Cruises’ Costa Luminosa, Azamara’s Azamara Quest, Ponant’s Le Soleal and of course the expansion of the P&O Australia fleet with the addition of Pacific Eden and Pacific Aria in November this year. And the following year will see Royal Caribbean’s massive Ovation of the Seas arrive which will further showcase cruising to the Australian and New Zealand community.

The event wrapped up with the revelation that the 20th annual Cruise Down Under conference will take place in September next year in Sydney, backed by Sydney Ports and Destination NSW.

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27

cruisE Report

PORT KEMBLA TO THE RESCUE

of Port Kembla and Wollongong for tourism with its proximity to the Sydney CBD and airport, and the varied attractions of the region whether they are the vibrant nightlife, shopping and dining precincts, the beaches, adventure activities, the wineries of the South Coast and Southern Highlands or simply the outstanding natural attraction of the Illawarra escarpment.”

Cr Colacino’s comments were echoed by Destination Wollongong general manager

As the appetite for ‘cruising continues to grow, expanding our offering for our many guests ... is the key to continued success

Wollongong may soon see an influx of cruise passengers.

Image: Destination NSW

’

Royal Caribbean Cruises is not waiting for a decision on any new capacity to open up in Sydney Harbour, identifying Port Kembla near Wollongong as a possible alternative to meet the supplementary demands on the NSW capital for the cruise industry. MATT LENNON reports.

Kembla’s facilities will be put to the test first for 2,400 passengers on 30 October next year when Radiance of the Seas ties up for the day, marking the first time a leisure vessel has visited the port.

It will act as the final stop on a seven-day ‘Tasmania & Australia’ itinerary which leaves Sydney on 24 October, visiting Melbourne and Hobart, with days at sea separating each port prior to the return to Sydney on 31 October.

During its day in Port Kembla, passengers will have a selection of pre-arranged shore excursions to choose from, courtesy buses to parts of town, or can explore the nearby beaches and township of Wollongong at their leisure.

It is estimated the one-day visit will inject upwards of $890,000 into the local economy.

Royal Caribbean Cruises regional vicepresident, Gavin Smith, said the line will be closely watching how the Kembla visit pans

out as it takes the opportunity to test the port with the prospect of a much closer working relationship on the table.

“As the appetite for cruising continues to grow, expanding our offering for our many international and domestic guests is the key to our continued success. Including Port Kembla on our itineraries will provide our guests the opportunity to sample all that Wollongong and the South Coast has to offer,” said Smith.

Radiance’s forthcoming arrival has been welcomed by councillors from the City of Wollongong, including Cr Leigh Colacino, who is also on the board of Destination Wollongong.

“This is a wonderful outcome for the Illawarra and regional tourism, but also makes business sense for Royal Caribbean to make use of one of the most capable ports on the east coast of Australia.

“Royal Caribbean understands the value

Mark Sleigh, who saw the port call as a great opportunity for the region and one which will yield “immediate economic benefits and ongoing tourism advantages”.

“Cruising is a booming tourism industry in Australia and the visit by the Radiance of the Seas will bring an influx of visitors to our shores and allow us to show off Wollongong and the South Coast to a whole new audience across the world.”

The inadequacy of Sydney Harbour at peak season and its sole port space at Circular Quay for ships taller than the Harbour Bridge is no secret. The trialling of Port Kembla, which is 100 per cent a freight and mining port, is an interesting move by Royal Caribbean.

If passengers can stomach the less-thanappealing sight of smoke stacks and shipping crates bookending the day, the natural beauty of the NSW South Coast, Illawarra region and a good selection of daytime shore excursions awaits. Of course, RCI and the wider cruise industry will be watching for the results of the experiment, not to mention those on Macquarie Street and in Canberra, tired of the loud banging at Garden Island’s front door.

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cruisE REPORT

CLIA view Brett Jardine, commercial director CLIA Australasia

Cruise set for an historic season It’s that time of the year when we are once again on the cusp of an historic summer with Australians’ passion for cruising fuelling the nation’s biggest ever cruise season. Between now and April next year, a record flotilla of cruise ships will sail Down Under. 38 CLIA member cruise ships will visit our shores, with an unprecedented eight ships making their maiden visits to Australia. Last season, Australia welcomed 36 member cruise line vessels, with only three making their inaugural visit.

This jump in maiden ship visits is another clear indicator of the surging popularity of cruising. As cruise lines around the world look for new destinations and new homeports for their ships, it’s clear that Australia is hot property.

From boutique expedition ships to megaliners, this season’s ships will provide a wide range of cruise experiences to cater to all age groups and holidaymaker types.

The 38 ships sailing local waters this summer include nine which are based in Australia year round, another 12 which will be deployed for all or part of the summer cruise season and 17 ships which will visit Australia.

There are some exciting highlights to look forward to including P&O Cruises’ five-ship spectacular in Sydney on 25 November, the deployment of Princess Cruises’ Golden Princess to Melbourne where it will take the mantle as the largest ship ever to be based in Victoria and Royal Caribbean’s first Brisbane season with Legend of the Seas sailing from the Queensland capital.

While Sydney will account for a large proportion of the ship calls, we’re seeing more and more ships cruising to and from other ports. Between them, our member cruise line ships will make more than 800 calls to Australian ports, including an impressive 40 maiden port calls.

Regional towns – from Lizard Island, Gladstone and Port Douglas in the north to Burnie and Hobart in the south – are set to get an increasingly bigger slice of the cruise pie as the economic benefits of cruising are spread right across the country.

COMMUNIQUÉ FROM… KAREN CHRISTENSEN General Manager & Director Sales/Marketing, Australasia

FAR MORE IN THE FAR EAST Seeing the Far East has never been easier with Silversea’s convenient, seamless packages. All 2016 Asia voyages aboard Silver Shadow now include shore excurions at every port of call, and a two-night pre cruise stay at the Shangri-La hotel.

jump in maiden ‘shipThevisits is another clear

Trace the spice route to the bejewelled pagodas of Myanmar, wind your way through the fabled isles of the Philippines or explore Vietnam in-depth.

indicator of the surging popularity of cruising

’

2016 ASIA VOYAGES ABOARD SILVER SHADOW

With 21 ships making a total of 330 roundtrip cruises from Sydney, Melbourne, Adelaide, Brisbane and Fremantle over the 2015-16 summer, cruising is expected to generate more than $300 million for the economy through passenger and crew spending and associated port charges.

The visits are a significant increase on last year’s 253 roundtrip cruises.

With a plethora of fantastic ports, great weather and a population that can’t wait to cruise, it’s easy to see why more cruise lines are sending more ships our way.

We may have reached the magic million mark in 2014, six years ahead of schedule, but there is still a lot of room to grow.

14-day Best of South East Asia Departs Singapore 5 January 2016.

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Headlines AUGUST & September 2015 18 Aug ASEAN courts cruise lines 20 Aug Europe water levels rising 25 Aug Crystal, Star parent record 27 Aug Celebrity earlybird launch 01 Sep New look Spirit returning 03 Sep Record year for cruising 03 Sep Kembla calling to cruise

07 Sep Get ready for a big summer 08 Sep NT cruise spend on rise 10 Sep Environment key for cruise 15 Sep New NZ levy to hit cruise 15 Sep Pacific strategy underway 17 Sep P&O clicks over 4m pax 17 Sep Pax cruise spend climbing

travelBulletin OCTOBER 2015

For more information or to book call 1300 306 872 or visit silversea.com Visit silversea.com for full terms and conditions.

29

industry in focus

Ryan Harvey (pict ured here surroun ded by some lovely lucky agents who Peruvian ladies), got to experience was the best of South America on the rec just one of the ent Globus Superto ur.

Chris Hall from Exotravel and Robert Mackie of Trans World Travel all dressed up at the Magellan Group National Conference.

el aco, Entire Trav from Visit Mon rt Thompson of n ow Br srt Alison Robe ll and Robe Brad McDonne aco & Tahiti showcase.

Connection’s on M nt ce e at a re Tahiti Tourism

This group of top selling Sunlover Holidays agents checked out all the best that Darwin and the Top End has to offer on a recent famil.

These top selling Flight Centre agents were treated to the sights and experiences of Hawaii when they visited last month as part of the Infinity Holidays Mega Educational Rewards famil. They participated in some adrenalin inducing activities including zip-lining and a helicopter tour over an active volcano.

30

travelBulletin OCTOBER 2015

October 2015

Teagan Lynch, Trevelcube; Stacy Harsh, Travelcube; David Kettle, NZ Sidekick; Chris Sutton, NZ Sidekick and Keira Blake, Kuoni Group Travel Experts were spotted all kitted up at the Sport Legends event during the TravelManagers conference in Adelaide.

These TravelMan agers’ personal travel managers the cold weathe had to rug up ag r but the views ain were worth it as Turkey’s magica they experienced l Cappadocia re gion from a hot air balloon.

The Virgin Australia team posed with TV personality James Tobin and Contiki founder John Anderson during the recent Tourism New Zealand All Stars famil.

Michael Hackman, Frances-Anne Keeler, Dwain Wall and Ted Blamey at the recent Cruise Down Under conference in Darwin.

s e spectacular sight were treated to th d ts lan en er ag itz ky Sw luc to n These te land, thanks on offer in Switzer . es es nc rie rlin Ai pe ex re d po an Singa s on Location and Tourism, Holiday

These Creative Holidays’ Star Performers agents were treated to a 12 night cruise around Greece and Croatia onboard Azamara Journey.

travelBulletin OCTOBER 2015

31

LUXURY Travel

Luxury

Barefoot

By Sheriden Rhodes While luxury travel was once defined as opulence – acres of marble, gold taps and silver service – today it’s much more about highly personalised experiences in far-flung destinations rich in culture and beauty. travelBulletin takes a look at the evolution of the luxury traveller.

I

ncreasingly today’s luxury traveller has little desire to be passive, with a strong focus on the experiential, suggests Peter Trembath, general manager of North Star Cruises, whose company has run high end adventure cruises for 30 years.

“Luxury is no longer defined by lavish surroundings, plush furnishings, and ornate décor,” says Trembath. “The new luxury is much more about experience and the new luxury traveller is more often than not an experience seeker; in fact they want a holiday

32

travelBulletin OCTOBER 2015

that’s life changing.

“They abhor time spent around a swimming pool no matter how impressive the structure. They prefer to be immersed in actual experience; they want to see what they would not normally see, touch what they would not normally touch and feel what they would not normally feel.

“They want to be inspired; to experience all that is authentic and uncontrived – experiences that are not necessarily exclusive but certainly those that are the realm of only the most determined.”

Sujata Raman, A&K managing director, agrees it’s no longer enough for the luxury traveller to visit a place and see the major sights - rather it’s about immersion in the culture, hands-on interaction and connecting with a place in a meaningful way.

“This could be foraging for produce and cooking in an exotic destination, dining in the home of a local family, discussing current affairs with a resident politician, participating in a traditional festival, meeting an artisan in their studio, exploring hidden gardens, helping produce lunch in a monastery for novice monks or picnicking with a local family over a game of cricket,” she says.

Giving something back If luxury travellers are seeking bespoke, hand-picked experiences in increasingly exotic, less-visited destinations, they’re also keener than ever to give back. They want to be aware that their experience is sustainable and preferably beneficial to others. “They don’t necessarily want to be lectured but they do want to be enlightened. They want their holiday to change how they feel – to change their perception or their understanding,” Trembath says.

A&K says luxury travellers have a strong urge to give back to communities visited, and become involved in the work done by A&K Philanthropy, a non-profit organisation dedicated to preserving natural habitats, protecting wildlife and promoting the welfare of indigenous communities globally.

“There’s tree planting in Kenya’s Masai Mara, bee-keeping in Tanzania, feeding school children in Cape Town, schools for the disadvantaged in India, monument restoration in Italy and much more,” says Raman.

LUXURY Travel

Let’s get personal Travellers today define luxury with items or experiences that have a personal connection, or a story linked to the designer, origin, culture or location. Additionally, luxury travel is defined by a property’s authentic, unique experiences, established reputation and impeccable standard of service, says Garrett Donovan, qualia’s general manager.

are looking ‘forTravellers an experience they can find a personal association with

’

“Travellers are looking for an experience they can find a personal association with, and create ultimate lasting memories,” says Donovan. “Providing multiple experience options, personalisation and distinction of offering is imperative to meet the future needs of luxury travelers.”

Guy Heywood, chief operating officer, Commune Hotels and Resorts, the

management company for Alila, Joie de Vibre, Thompson and Tommie, says guests are seeking a unique experience, while being looked after with incredible service and attention to detail. “It’s also about factoring in a learning situation, where guests can find personal enriching growth potential.”

Exclusivity is also key, says James Hewlett, Singapore Airlines Holidays commercial manager. “The recently opened Outrigger Konotta Maldives Resort for example has just 52 suites, creating a much more personalised experience for guests.”

All in the family Across the board, luxury tour operators and high-end properties are also seeing huge growth in multi-generational and family holidays. Lucy Davidson, executive director Banyan Tours, says increasingly they are seeing extended families travelling to India, especially at Christmas and Easter.

“It seems travellers are looking for experiences they can have together. Be it kite flying above the old city in Jaipur, bathing and painting elephants, or a

hands-on cooking lesson – anything that is memorable for families becomes a highlight of a holiday.”

A&K has noted a shift to replace expensive and glamorous hotel rooms with bespoke real-life experiences that are tailored specifically to a guest’s interests.

“It often means going off the beaten path, to remote destinations where lodgings may be more modest and infrastructure still

means going ‘offIttheoftenbeaten path, to remote destinations ’

developing but the rewards are remarkable experiences, unique cultural interactions and a singularly more personalised experience,” Raman says.

“Gone are the days when the promise of opulence was a key factor in determining a traveller’s choice of luxury destination.

Today there’s a growing passion for barefoot luxury, and things are far less ostentatious than they once were”, concludes Singapore Airlines Holidays’ Hewlett.

travelBulletin OCTOBER 2015

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LUXURY Travel

AUSTRALIANS EMBRACE WELLNESS Wellness now infiltrates every sector of the travel industry, including cruising and urban hotel stays, as Australians sign up to detox, take time out, lose weight and face life’s big issues.

Ageing baby boomers and men are key drivers behind the huge growth in the wellness industry estimated to be worth a phenomenal $3.4 trillion worldwide, according to US-based Global Wellness Institute. Australia’s own health and wellness industry has grown on average 4.7 per cent a year since 2010, generating more than $387 million, estimates market research company IBIS World. Experts claim people’s fast paced and stressful lives are largely contributing to the growth. Gregg Cave, co-founder of Gaia Byron Bay, says taking time out is essential as we find ourselves over exerting and doing way too much.

“Life seems ‘busier’ than ever and ‘e-toxing’ is becoming more sought after to help individuals let go of their dependence on technology, have time out to rest and then re-engage with the world a lot less wired,” says Brigid Walsh, general manager of Golden Door

Elysia in the Hunter Valley.

Celebrity Cruises has seen an explosion in cruise spa holidays in recent years and consequently offers a specialised spa holiday suite class known as Aquaclass. “Booking an Aquaclass suite provides passengers with a personal concierge to arrange spa treatments, and complimentary access to the ship’s Relaxation Room and Persian Garden aromatherapy steam room. Guests even have their own specialty restaurant Blu that serves fresh, healthy cuisine served in a relaxing spa-inspired atmosphere,” said Adam Armstrong, commercial director, Celebrity Cruises Australasia.

Thankfully the industry has evolved beyond the old fat farms and boot camps of old – although weight loss programs remain top sellers - towards a more holistic approach catering for a broad range of goals.

Senior naturopath Damien Evans from Hamilton Island’s Spa qualia says today it’s about a complete holistic approach to a person’s holiday. “People no longer want to have just hotel room stay; they want a unique holistic experience and we can act as facilitators of that, enabling people to recharge, rethink their life and reconnect with those important to them.”

The number of retreats offering world-class facilities, wellness, holistic and medical spa facilities on offer is staggering, says Australian spa curator and treatment trend expert Judy Chapman.

Chapman says Australians have access to excellent therapists; yoga and fitness instructors in their own communities, so the pressure is on for retreats and spas to deliver exceptional experiences beyond what one would normally get at home.

“Australians are some of the most educated folk about the wellness movement – and that includes men.”

Romantic European Escapes With an array of destinations and the flexibility to cruise European inland waterways at your own pace, Le Boat has always been a great holiday option for a quiet break or romantic getaway. Now, with the addition of their new two-person cruiser, Horizon, Le Boat has the perfect boat for couples as well.

Horizon has been designed exclusively for Le Boat with couples in mind and combines space, comfort and hi-tech equipment. It is the only boat of its size on Europe’s inland waterways boasting such large indoor and outdoor space. The sundeck really is a ‘FUNdeck’ with ample room to enjoy incredible surrounds; whether that is romantic Venice, the wine regions of Burgundy or historic Bruges.

Horizon will be available on the Canal Du Midi for the start of the 2016 season and more boats will be introduced throughout the year across France, England, Germany, Italy and Holland. n www.leboat.com.au 34

travelBulletin OCTOBER 2015

LUXURY Travel

Q&A

Luxury travel means different things to different people. Kerry Schmook, travel designer, for Luxury Life Travel explains the new trends and experiences that define luxury travel today.

What trends are you seeing in terms of luxury travel?

It’s all about personal experiences, adventures, celebrations and family time.

Travellers are looking to connect with things that matter most to them. Life is precious and people are choosing to spend their holiday time achieving something memorable and meaningful. People love coming home with a story to tell, a story that says so much more than staying in a great hotel room. It’s about what they did, what they achieved and how it made a difference in their life.

Luxury travel was once perhaps defined as opulence. What defines luxury today?

It’s true that elaborate details matter to the luxury traveller, and for some guests they are still the defining factor, but for others there are aspects that express their own “personal luxury”. From a traveller perspective it’s essential to think about

what’s important, based on their style, purpose and passion. Individual luxury is defined by whatever is comfortable and brings pleasure for the individual. As Coco Chanel put it best: “Luxury must be comfortable, otherwise it is not luxury.”

Are Australian travellers more discerning than they once were?

Yes. There’s more information available than ever before with the ability to research independently and be selective with our choices. However, if travellers are truly discerning they will seek advice and guidance from a travel professional they know and trust to enjoy the best possible travel experience.

Are Australian travellers better able to afford and treat themselves to luxury travel products?

There are so many beautiful places and it’s a very competitive market, so as a result,

there is great value available at certain times of the year which gives the traveller a chance to save, plan and experience some of the best in the world at a terrific price.

How would you advise agents wanting to sell luxury travel? What should they be asking the client first?

Travel is very personal. The key is to know and understand your client.

The more you can define their travel needs and desires the better. It’s vitally important to develop a trusting relationship with your client. And it’s important to have intimate knowledge of the properties you are recommending.

It’s not possible to confidently recommend and sell something you haven’t experienced for yourself.

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VOMO’s irresistible summer offer VOMO Island Resort is offering a free upgrade and stay pay deal, making an escape to the South Pacific even more enticing. This private Fijian island retreat offers guests booking a Hillside Villa or Beachfront Villa a free upgrade, which can be combined with VOMO’s ‘Stay 7 Pay 5’ or ‘Stay 5 Pay 4’ offers. Quote booking code “UPGRADE” when reserving a minimum five-night stay until November 30, 2015 for stays from November 7 through December 21, 2015 and January 23 through March 21, 2016, subject to availability. n Visit www.vomofiji.com

Amazing Maldives packages Maldives specialist, Singapore Airlines Holidays, has partnered with the Maldives’ newest luxury resort Amilla Fushi, to offer savings of up to 40 percent off seven-night packages.

Accommodation in an Ocean Lagoon House is priced from $7,995 (was $15,290) per person twin share for travel between August 1 and October 31, 2015. All packages include return economy airfares with Singapore Airlines, seven-nights’ accommodation, half board (breakfast and dinner at Baazaar restaurant), a 50-minute spa treatment per person per day, return airport transfers by domestic flight and speedboat (shared), all resort child care, all water sports, and current airline fuel surcharge and taxes (subject to change). n Visit www.siaholidays.com.au/amilla

Discounts on luxury Mekong River cruises Savings of up to 30 per cent are on offer on world-renowned seven night CF Mekong River Cruises aboard the boutique 14-cabin luxury teak Toum Tiou 2 river ship and sister ship Toum Tiou’s Siem Reap to Saigon tours this October, November and December.

Details through reservations@cfmekong.com, subject to availability until December 8. n www.cfmekong.com

Escape to Mauritius from $2059 per person.

Fly with Air Mauritius and Virgin Australia and spend six nights at Outrigger Mauritius Beach Resort from $2435 per person from the east coast ($2059 ex Perth). In addition to return airfares and accommodation in a Deluxe Seaview room, the price includes breakfast and dinner daily. Upgrades to a Beachfront Club Room are available from $140 per person. Resort highlights include four swimming pools, three restaurants, four bars and the Navasana Spa. All flights from east coast capitals transit through Perth. The deal is available until October 31 but seasonal surcharges apply October 1-31. n Visit www.asiaescapeholidays.com.au

New Zen wellness tour of New Zealand A new 10-night wellness tour of New Zealand’s South Island includes a four-night stay at the awardwinning, Zen-inspired health retreat, Aro-Ha, in the Southern Alps. Starting in Christchurch on March 9, 2016, the ‘wellness journey’, led by Australian naturopath, Sharron Speldewinde includes accommodation, most meals, two scenic flights, Milford Sound cruise, and complimentary massages and activities at Aro-Ha, for $9425 per person, twin-share. n www.activetravel.com.au

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LUXURY Travel

Insight Vacations launches Luxury Gold A collection of 32 of the most extravagant tours in Insight Vacations’ history have been compiled into the company’s freshly released ‘Luxury Gold’ program. It features nine new all-inclusive premium escorted trips.

Speaking with travelBulletin, ceo John Boulding described Luxury Gold as a “nuance” of its Insight Gold Luxury offering, emphasising it was not established to compete with enhanced programs of rivals, but to cater for increasing demand for upmarket product - led by the Australian market.

The program is based on four key ingredients - top-shelf hotels, unique dining, exclusive VIP experiences and unrivalled service. Boulding said the “very best” grand hotels, boutiques and resorts were selected in Luxury Gold, such as the 5-star Milestone Hotel, rated the highest in the UK in TripAdvisor’s most recent Travellers Choice Awards.

In Europe there are 10 Luxury Gold itineraries, including the 12-day Ultimate Italy; eight-day Luxurious London and Paris; and

13-day Spain & Portugal in Style.

In Paris, guests stay at Napoleon Hotel and in Versailles, the Trianon Palace, Waldorf Astoria, within the grounds of the Chateau of Versailles is featured.

Dining options include Michelin star and epicurean venues, small bistros, grand restaurants or dine-around experiences that “really evoke the character of the place being visited”, according to Boulding.

Every trip offers unique VIP experiences that cannot be done independently, according to Boulding, such as private visits of the Sistine Chapel in Vatican City or the Vasari Corridor in Florence which spans the Pitti Palace to the Uffizi Gallery. There are also small group tours of bistros, chocolatrias and cheesemakers to sample local foods.

The Luxury Gold collection also features itineraries in the USA and Canada, South America, and India, Nepal, Bhutan, and Sri Lanka. n www.insightvacations.com

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RAIL Journeys

Right on Track Train travel is as much about the journey as the destination.

KRIS MADDEN blows the whistle on some of the world’s best rail journeys.

Luxury across Europe As you board the legendary Venice Simplon-Orient-Express train at London’s Victoria station bound for Gare de l’Est in Paris, French chefs on board are preparing the Michelin-grade menu to be served in one of the exquisite 1920s dining cars. Start with lobster and caviar blinis by the baby grand piano in the bar car, before feasting on a four-course dinner served by white-gloved waiters. Slip blissfully between the crisp damask sheets in the vintage polished oak and mahogany-panelled cabin, amid the crystal glassware, silk lampshades and giant windows. Wake up, and after breakfast in bed, you’ll be in Venice.

A flying Scotsman Single malt whisky and valleys of heather are just some of the joys of the tartan-trimmed Royal Scotsman’s Western Journey from Edinburgh across the Scottish Highlands to the fishing town of Mallaig on Scotland’s northwest coast. This ‘mobile’ Scottish country bed and breakfast sleeps 36 in ensuite staterooms, with meals served in two dignified dining carriages. An armchair in the observation car or the open-air veranda provide a wonderful vantage point as you glide past castles, villages and glens.

Rocky Mountain high Snow-clad mountains, glacier-fed lakes, wildlife and impeccable service are all part of the Rocky Mountaineer experience. The journey from Canada’s Vancouver to Calgary across the Rocky Mountains has three overnight hotel stops (included in the ticket) passing through the Kamloops region and up to the ski resorts of Lake Louise and Banff, before heading to Calgary, Alberta’s ‘cowboy town’. You travel during the day so you don’t miss any of the moving art gallery passing by your window. Go with the premium Gold Leaf Service which has a double-deck dome car and meals served in the posh dining car.

Footsteps of the Incas Named after the American explorer who discovered the remains of the 15th-century Inca Citadel Machu Picchu in 1911, Peru’s Hiram Bingham train is one of South America’s finest rail journeys. Hiram Bingham carries 84 passengers in 1920s Pullman-style carriages, with two luxurious dining cars, a kitchen car, a bar/observatory car and live local on-board entertainment. The journey of just over three hours from Cusco to Machu Picchu winds through some of the Andes’ most breathtaking scenery before arriving at the World Heritage-listed site. There’s time for a five-hour guided tour of the ancient relics before heading back to Cusco.

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Venice Simplon-Orient-Express

Royal Scotsman

RAIL Journeys From Russia with love Russia’s Trans-Siberian Railway has been a sort of arduous rite of passage for dedicated train enthusiasts since 1901, but the amenities could only be described as basic. That is, until the lavish Golden Eagle Trans-Siberian Express, Russia’s only fully ensuite train, began the luxury service from Moscow to Vladivostok a few years ago. Imagine listening to Tchaikovsky play as you sample vodka and caviar in the velvety surrounds of the classic Russian restaurant; while gazing through the wide-wide windows at the vastness of Siberia.

Royalty on wheels The ‘Land of the Maharajahs’ is wonderful anytime, but Rajasthan is even better when surrounded by the regal grandeur of a bygone era.

With its opulently embroidered ruby, sapphire, pearl and emerald Indian decor, gourmet cuisine and first-class service, the Royal Rajasthan on Wheels simply oozes old-world charm. A seven-day journey explores Rajasthan, Madhya Pradesh and Uttar Pradesh.

The deluxe and super deluxe cabins are all beautifully furnished with ensuite bathrooms, luxurious beds, comfortable sofas, in-built wardrobes and huge glass windows. Escape the heat and dust in the spa, or relax in one of the lavish bars or lounges.

The Soul of Africa Everyone from kings and presidents to celebrities have ridden The Blue Train, the magnificent, moving 5-star ‘hotel-on-wheels’ which traverses South Africa. On board the train you can indulge in the finest cuisine accompanied by some of South Africa’s finest wines. Around-the-clock personal butlers will see to your every need; be it in the comfort of your private suite, or in any one of the train’s exquisite lounges. The route between Pretoria and Cape Town is a 27-hour journey of 1600 kilometres, passing through awe-inspiring mountain ranges and arid deserts and across untamed savannah grasslands teeming with wildlife.

Ecuadorian Encounter Ecuador’s recently refurbished Tren Crucero from the volcano-flecked Andes to the country’s tropical coast is emerging as one of the world’s most thrilling rail journeys. The rail passage from Ecuador’s capital, Quito, in the Andes, to Guayaquil on the sunny, Pacific coast was originally created over a century ago in order to unite the country.

The dramatic Devil’s Nose, with its steep zig-zagging sections, remains the most exhilarating section of the route and is regarded as the most difficult pieces of railway in the world. The journey forms an ideal add-on to a pre or post cruise in the Galapagos Islands.

travelBulletin OCTOBER 2015

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RAIL Journeys

Travellers prefer trains ACCORDING to a survey conducted by Rail Europe earlier this year, trains are the preferred mode of transportation when it comes to travelling through Europe.

Of the 4,949 survey participants, 73 per cent thought train travelling was the most comfortable and convenient way to see the continent, reaching a much wider range of destinations than any other mode of transportation, including car and coach.

In the survey results, participants listed convenience, value for money, efficiency,

environmental friendliness and the opportunity to interact with locals as the top five benefits of European train travel.

Comparing the time from Paris to London, it’s obvious that the train comes out on top when comparing the time of the trip on a plane plus the time taken for check-in, customs and baggage collection and screening.

In terms of reasons for travelling to Europe, a whopping 84 per cent listed holidays as the key incentive, while others go over to visit family, study and to honeymoon.

Rail Europe also reports that couples top the list of visitors (at 34 per cent), followed by solo travellers (26 per cent), groups of friends (23 per cent) and finally, families (17 per cent).

The world’s No. 1 distributor of rail tickets and passes, says Australians and New Zealanders travelling to Europe predominantly visit the UK, France and Italy respectively, with visitor numbers increasing yearly to Spain, Germany and Switzerland. Also, while individual country passes are frequently used, the most popular pass among Aussies and Kiwis is the Eurail Select Pass, which entitles holders unlimited travel to four adjoining countries. Rail Europe is offering travellers the widest and best selection of European rail products across no less than 30 countries and 25,000 destinations on more than 11,000 different routes. Its portfolio of products include Eurail Passes and Swiss Passes as well as rail carriers such as SBB (Switzerland), SNCF (France), Trenitalia and NTV (Italy), DB (Germany), the ATOC (UK), Eurostar, Thalys, TGV Lyria and more.

Rail Europe tickets are distributed by Rail Plus, Rail Tickets, CIT Holidays and Infinity Rail in Australia; and Rail Plus and Go Holidays in New Zealand. n www.raileurope.com.au

BARGAINS ON ITALIAN HIGH SPEED TRAINS ITALIAN rail operator, Trenitalia, recently launched its latest train, the Freccisrossa 1000, in June this year offering customers a highly modern and fast service which is available with the popular advanced booking super economy fares through Melbournebased rail specialists, International Rail.

The new high speed trains will be utilised on the most popular tourist and business route from Milan-Bologna-Florence-RomeNaples. It offers 457 seats across four

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categories of cabins, Standard, Premium, Business and Executive. New catering options, internet access and entertainment monitors are present in each class.

The new fast speed service also comes with attractive fares, such as the welltravelled Rome to Milan service, which takes only two and a half hours-travelling at 360km per hour, priced from $48 per person in a standard class. Or the Rome to Venice service from only $41 per person in

a standard seat. Trenitalia will be offering four fare levels carrying electronic tickets which are simply scanned by rail conductors when boarding trains.

International Rail advises that the earlier you buy the advance purchase tickets the cheaper they are.

For more information on booking online or through travel agents call International Rail on 1300 387 245 or visit their website. n www.internationalrail.com.au

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RAIL Journeys

TRAVELMARVEL’S GREAT RAIL JOURNEYS Travelmarvel’s new Great Rail Journeys 2016 brochure is the company’s first ever dedicated brochure for this travel format and has been made possible through an exclusive partnership with award winning UK-based rail travel company Great Rail Journeys.

Designed to capture the golden era of rail travel, when the train was more than just the mode of transport but the highlight itself, Travelmarvel’s new program offers a choice of fourteen relaxing rail journeys covering the length and breadth of Europe.

What makes the new Travelmarvel Great Rail Journeys stand out in the market is the fact that each one is accompanied by a dedicated English speaking tour manager. Travelling with guests throughout, they will handle all elements of the tour, from ticketing to ensuring guests are personally guided to their platforms and to their seats and liaising with the English speaking guides. Also included in every journey is all premium centrally located accommodation, airport and hotel transfers and selected excursions, entrance fees, meals and sightseeing.

Travelmarvel is featuring many of Europe’s most iconic trains and railways in its program: from the world’s slowest express train, the Glacier Express in Switzerland; to the art deco elegance of the Venice Simplon-Orient-Express; and the West Highland Line in Scotland, whose Jacobite Steam Train starred as the Hogwarts Express in the famous Harry Potter films.

David Cox, executive general manager at Travelmarvel says the company is committed to showcasing the romance of rail travel to its guests in Australia.

“Rail is such an exciting way to travel and it is definitely in

The Travelmarvel team launch Great Rail Journeys

demand amongst our guests. With this program we offer itineraries that are fully chaperoned so that guests have someone to support them throughout their trip, enabling them to sit back and just enjoy themselves. We take care of all the hotels, all the tour guides, transfers and most meals are also included. Through our partnership with Great Rail Journeys we are offering rail holidays as they should be – seamless, stylish and stress-free.”

To celebrate the new program, Travelmarvel is offering an earlybird discount of $1,000 per couple off all itineraries, which is available until sold out. n www.travelmarvel.com.au

Infinite choices with Infinity

Trains make gains RAIL travel, particularly in Europe and the USA, seems to be the current growth area with rail specialist International Rail reporting a 20 per cent increase in business so far this year compared with January to September 2014.

Managing director Jonathan Hume added that with strong support from new preferred arrangements with agency chains, travel agency sales are up by 50 per cent.

He credited this to “our independent business model and strong relationships with railway operators providing price advantages across a range of rail tickets and passes.

“This means agents can offer their clients the best fares or bundle them to make good additional commission margins”.

Mr Hume said that he anticipated similar growth in 2016. “The nature of rail today is that it is a booming product which more and more travellers are wanting to experience, resulting in more complex bookings to meet demand,” he said.

“This new level of complication can be time consuming and frustrating for agents so International Rail has removed that problem with its agent-friendly booking services”.

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No Matter if your clients wish to travel close to home or as far as Europe and beyond Infinity Rail are able to offer an extraordinary holiday experience by rail.

A team of rail experts can assist with a tailor-made itinerary including rail, airfares, accommodation and sightseeing.

Infinity is a ‘one stop shop’ whether your client wants to travel independently, on an escorted rail journey, combine their holiday with a cruise, or travel on one of their dedicated departures.

Infinity Rail was created in 2004 and currently has 18 dedicated rail staff across three sales teams. Collectively they have hundreds of years’ travel industry experience and can help agents sell rail packages confidently and offer advice on which product will suit your clients’ travel needs. Booking rail passes and tickets with Infinity Rail before departing Australia offers convenience, peace of mind and saves money.

The likes of the Rocky Mountaineer, the legendary Venice Simplon-Orient-Express, The Ghan, Indian Pacific, Eastern & Oriental Express and Swiss Scenic trains will all take clients on a memorable journey through some of the world’s most spectacular landscapes, whilst offering full service and catering.

When purchasing tickets, many countries such as Europe, Japan, Canada and USA, offer a great range of rail passes for travellers who need flexible travel options. The other option is point to point tickets – generally great value and more suitable for shorter trips. Also many rail tickets and passes offer significant discounts for seniors, students or persons under 26 years. n www.infinityholidays.com.au/rail

EARLY BOOKING BONUSES* On sale from 22nd September 2015

DISCOUNTED EUROSTAR FARES Available for Standard Class & Standard Premier Prices start from $78pp in Standard Class & $183pp in Standard Premier Sale from: 22nd Sep - 02nd Nov 2015 Travel from: 12th Oct - 25th May 2016 (to/from Paris, Brussels, Lille, Calais) Travel from: 07th Nov 15 - 23rd May 16 (to/from Lyon, Avignon, Marseille) Exchangeable with fee, non-refundable | Blackout periods apply Extended booking horizon upto 8 months

UP TO 20% OFF FRANCE RAIL PASS 1st & 2nd Class | All Validities | Adult, Senior, Youth & Saver Book & pay by 30th Oct 2015 Extended validation period, passes can now be validated within 12 months of the issue date Travel must be completed by 02nd Nov 2016 Non-exchangeable, non-refundable

SWISS PEAK PROMOTION Receive a 20% discount on already discounted Swiss Peak prices.

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Participating peaks: Gornergrat, Mount Pilatus, Schilthorn / Piz Gloria, Titlis Sale from: 24th Sep – 27th Oct 2015 Blackout dates apply | All travel must be completed by 02nd Nov 2016 Non-exchangeable, non-refundable

EXTENDED VALIDATION FOR THE SWISS PASS Swiss Passes can now be validated within 11 months of the issue date Book & pay between 24th Sep - 27th Oct 2015 Travel must be completed by 02nd Nov 2016 | Non-exchangeable, non-refundable

* For full terms & conditions and more promotions visit www.railplus.com.au/specials P: 1300 555 003 E: preferred@railplus.com.au W: www.railplus.com.au

South America

Mercado Central, Silvia Garcia

By Gary Walsh

S

OUTH America is nothing if not diverse. On the long run from the steamy tropics and beaches of Central America to the fjords and mountains of the gateway to the Antarctic in southern Patagonia, the continent offers jungles, rivers, high-altitude deserts, mysterious archaeological sites, ski fields, vineyards and great cities. And nothing better encapsulates this diversity

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than the continent’s three major tourist cities – Santiago, Buenos Aires and Rio de Janeiro.

Santiago and Buenos Aires have long benefited from being gateway cities for Australian travellers. Both have Spanish heritage, but the two are enormously different. Visit Santiago and there is no doubt you are in South America, but drop Buenos Aires into the middle of Spain and there would be scarcely a hair out of place.

And Rio de Janeiro? Well, it’s just Rio, with its wild combination of Portuguese, African and indigenous cultures, and its incomparable setting and riotous joie de vivre.

The heart of Santiago is Plaza de Armas, the city’s central square, which is

surrounded by classical buildings including the cathedral and the national museum, and full of activity all day and night. Portrait and landscape artists set up their easels, chess players sit on stools over café tables and buskers keep the entertainment flowing.

The Mercado Central is more than just a fresh food market full of life and colour. It is also one of the best places in Santiago for a meal, with seafood restaurants serving up the freshest fare imaginable. For the city’s best view, ride the funicular to Cerro San Cristobal, where a huge statue of the Madonna overlooks the city, with the snowcapped Andes on the eastern horizon.

Buenos Aires is a city that flaunts its classicism. Cleaved in two by the world’s widest street, Avenido 9 de Julio, it is big and bold and beautiful. The centre is traditionally

South America

European, with boulevard cafes, grand hotels and stately 19th century buildings, and the inner suburbs have their own character.

Palermo is hipster central, BA’s trendiest neighbourhood, while San Telmo is staid and stately, its streets lined with classic apartments, museums and high-end shops.

But to get to the city’s raffish heart, head for the working class district of La Boca.

It’s best avoided at night, but by day La Boca is bursting with colour. Buildings are painted in vibrant primary hues, the streets are thronged with activity – everything from alfresco tango dancing to jugglers and magicians – and there are great bars everywhere.

Don’t miss La Bombonera, the rundown stadium where Argentina’s most famous football club, Boca Juniors, plays. Boca was home to Diego Maradona and now Carlos Tevez is back with his boyhood team. If you catch a game, with its heaving, threatening

atmosphere, at least do the fascinating stadium tour, which gets you into the change rooms and onto the famous turf.

At night, Buenos Aires is a magical place, with music everywhere, and the tango takes centre stage. There are countless places to see this most exotic dance in its home city. Many of them, of course, are commercial and aimed squarely at tourists – others are more authentic (try Confiteria Ideal, Cachirulo or El Yeite). Whichever you choose, be prepared for a late night and lots of red wine.

Brazil, for historical reasons, stands apart from the rest of South America. It was colonised by Portugal, not Spain, and it also saw hundreds of thousands of African slaves brought to the country who have contributed to Brazil’s melting pot of cultures.

And Rio de Janeiro has, quite simply, the most stunning setting of any city in the world. The Corcovado, with its massive and iconic statue of Christ the Redeemer, dominates the skyline along with Pao de

Acucar (Sugarloaf Mountain). The views from both over Rio’s countless bays and beaches are magical, but don’t miss the cable car from Sugarloaf to the beach at Praia Vermelha.

Beaches? Well, choose from Copacabana, Ipanema, Barra da Tijuca, Prainha and Vermelha – each has its own appeal and character, from the see-and-beseen sands of Copacabana and Ipanema, to the more peaceful and sedate Prainha.

Rent a deck chair, pull up a caipirinha, and soak up the rays and the atmosphere.

Rio, of course, is synonymous with its sybaritic carnival, which takes over the city every February. It is a spectacular, crazy time of year to be in Rio, and there is nothing like it anywhere else in the world, but probably best avoided if you value your sanity and your wallet.

Next year will see the Olympics come to Rio, two years after the football World Cup final was played there. With that in mind, it’s sometimes hard not to feel like it’s the centre of the universe. And standing on Copacabana, looking at the beautiful people and the beautiful surroundings, it’s easy to understand why. travelBulletin OCTOBER 2015

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South America

SPOTLIGHT ON:

Chile

Stretching for more than 4300 km along the west coast of South America, Chile boasts some of South America’s most incredible landscapes: gleaming glaciers, bubbling geysers, stunning alpine lakes and vast rock-strewn deserts.

The country’s unique cultural heritage can be seen in the mysterious statues of Easter Island, the grand colonial plazas of Santiago and the thriving indigenous communities of the Andean foothills.

Key Highlights One of Latin America’s most striking cities, Santiago enjoys a prime location at the base of the spectacular Andes. The Chilean capital is renowned for its superb museums, fine restaurants and lively nightlife, while the surrounding area boasts world-class trekking and skiing.

The vast Atacama Desert is the driest place on Earth, full of eerie rock formations, steaming mud pools and shimmering salt flats.

Located close to the Argentinean border, the Chilean Lakes District is an area of immense natural beauty. A cruise through this region reveals vivid glacial lakes, snowcapped volcanoes, thundering waterfalls and quaint alpine villages.

Chile has been producing high-quality wine for more than 400 years. Experience this timeless tradition at the vineyards of the Colchagua Valley.

In Depth Chile is known as the paise de poetas, or ‘country of poets’. One of its most-famous wordsmiths was Pablo Neruda, winner of the Nobel Prize for Literature in 1971. A glimpse into his life can be seen at his former home in Valparaiso.

Located 3600 km off the coast of Chile, remote Easter Island is best known for its moai – monumental stone statues scattered along the shoreline; white sand beaches; fascinating caves; and excellent snorkelling and diving.

The prize jewel in Chilean Patagonia’s crown, Torres del Paine National Park is one

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of South America’s finest natural reserves, dominated by jagged towers of granite, rich forests, spectacular glaciers and stunning turquoise lakes.

Need to know Access Santiago’s international airport is Arturo Merino Benítez International Airport (SCL).

It is approximately 20 minutes from the city depending on traffic. Pre-booking arrival transfers is recommended.

Handy Hints • Most locals can speak some English – more likely in large cities like Santiago. It’s useful to carry a phrase book.

• Ask before taking photographs of people, especially in tourist areas as you may be asked for money afterwards.

• Meal times are quite different to Australia. Lunch is normally served 1-4pm and dinner starts from 8pm, but it is customary to eat around 9-10pm.

• Some cities and attractions, such as the Atacama Desert, are at high altitudes and altitude sickness can affect some people until they become acclimatised.

Visas No visa is currently required for holders of Australian or New Zealand passports.

Australian passport holders are required to pay a US$61 reciprocity fee on entry into Chile which allows multiple entries for up to 90 days.

Safety & Security Chile is considered to be one of the safest South American countries for travellers, however in large tourist centres like Santiago, tourists need to be wary of pickpockets and bag snatchers.

Tipping Tipping is optional, but it is common to tip service providers and anyone who goes out of their way to help.

When to go Due to its length, Chile features a variety of climates. All of Chile’s cities experience their warmest weather between October and April and the coldest from May to September.

Further information Chile Tourism http://chile.travel

EARTHQUAKE UPDATE Official language Spanish Religion Almost 90% of Chileans are Roman Catholic.

Money Chilean Peso (CLP) is the official currency.

US dollars are widely accepted.

Following the recent earthquake in Chile, Chilean tourism authorities advise that major tourism destinations, including the southern part of the country into the Patagonia region, are operating normally. The capital, Santiago, and surrounding areas, including Valparaíso and wine regions, were not affected.

South America

Campaign highlights highs of Chile TURISMO Chile has launched a new campaign promoting the country and its five regions as the ultimate destination for Australian travellers. The campaign sees Turismo Chile partner with LAN Airlines and a range of Australian tour operators including Forward Travel, Chimu Adventures and Captain’s Choice in a bid to encourage Australians to discover more about Chile.

Turismo Chile long haul markets manager Pablo Javier Retamal says the new campaign highlights the diversity of activities that can be experienced in Chile, from trekking in the Torres del Paine National Park to rafting through rivers surrounded by millennial forests.

“Research shows that Chile sits high on the list as a destination Australians wish to visit soon therefore the campaign focuses on bringing to life the experiences Chile has to offer outside of our gateway of Santiago.”

The campaign aims to grow the average length of stay in the region, and encourage Australians to visit now. “This year’s campaign launched earlier than ever before,” Retemal says. “Through our partnership with LAN and the various cooperative partners, we

Research shows that ‘Chile sits high on the list as a destination Australians wish to visit soon...

’

will be looking to drive Australians to not just think about a South American holiday, but to book and make it happen.”

Air New Zealand has shaken up the access to South America by introducing three weekly flights from Auckland to Buenos Aires from December. The service will be operated by a Boeing 777-200 aircraft with a flight time of around 12 hours, and an intended code share arrangement with Aerolíneas Argentinas providing connections to Brazil.

“This new route to Buenos Aires further strengthens our network in the Pacific Rim.

Argentina is an exciting new destination for New Zealanders, and with seamless one-stop connectivity through Auckland it will provide a fantastic opportunity for Australians as well,” said Air New Zealand CEO Christopher Luson.

After a long integration process following the association of LAN Airlines and TAM Airlines, LATAM Airlines Group has decided to adopt a single name and identity which means the new brand for the largest airline group in Latin America and its affiliates will be LATAM. The new LATAM branded airline group will unite all the passenger and cargo airlines related to LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador and TAM in Brazil, Colombia and Paraguay.

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South America

Tempo brings back Columbia

Colombian Yellow, Liz Saldana, bit.ly/1Pm9PAl

LATIN America is a destination that has intrigued Australians for decades but until only recently has it seen such an influx of curious Aussie travellers determined to get a glimpse of this truly unique and spectacular part of the world.

Tempo Holidays has been busy redesigning its upcoming 2016 Latin America brochure, available at travel agencies this month.

Rod Vargas, product manager at Tempo Holidays is excited to showcase the new-look brochure which he says is a more user-friendly edition that inspires would-be travellers to come and experience the best that Latin America has to offer.

In addition to some traditional favourites, Tempo has introduced some new and exciting programs to complement the brochure.

“I wanted to use this brochure more as a guide to inspire travellers rather than publish every product we have, and drive people to our website for more content,” said Vargas.

Colombia is back after a few years of not being featured in the brochure.

“We felt it was important to bring back a country that offers so much from the old colonial walled city of Cartagena, to the post Pablo Escobar run city of Medellin and the bustling capital of Bogota.

“It is a country that many have fallen in love with and we felt Australians are more than ready to discover this amazing place,” he said.

New programs consolidate smaller packages allowing passengers to travel an entire country in one hit. Tempo’s ‘Glimpse of Chile’ visits north, centre and south of the country, while ‘Argentina Express’ gives travellers a comprehensive look at all major sites. A new award-winning train journey in Ecuador (Tren Crucero) will be featured in the brochure, giving travellers the opportunity to traverse through Andean highlands and coastal plains, enjoying breathtaking scenery and friendly Ecuadorian hospitality.

“Here at Tempo Holidays we are thrilled to showcase this magnificent and unique destination and cannot wait for others to fall in love with South America like we have,” said Vargas.

“Whether it’s the dramatic and diverse landscapes, the rich ancient history or the intoxicating and vibrant culture where music, dance and food is front and centre, Latin America is a destination that offers something for everyone; from the first time traveller to the seasoned jetsetter.” n www.tempoholidays.com

South America

Q&A

South America is a hot destination at the moment for Australian travellers, with a variety of tours covering everything from budget to luxury to cruise. Janet Bradley-Ryalls, MTA from Cairns shares with travelBulletin her tops tips for selling the destination.

How well does South America/ Antarctic sell?

The destination is a big seller for me and one I enjoy planning with my clients. They generally know what they want to do and see, so it is a matter of planning a detailed and exciting itinerary that covers their all their requirements. It is also easy to upsell to include other destinations, as many of the flights do not fly direct, so there is good opportunity to add another stopover or two.

a logical order to save back tracking is highly recommended.

Is there sufficient product knowledge available to agents?

The tourism organisations are very good and if you are ever stumped, they can be very helpful in helping to plan itineraries or source operators. I find the small group tour operators are very knowledgeable and they use local guides and probably deliver a more authentic South American experience.

Is it seen as an expensive destination?

It would depend on how far in advance the client wishes to book. South America can be quite affordable if the client plans well in advance, to get the best airfares, or to take advantage of early bird discounts, and have a good choice of accommodation.

Because South America is a very large continent, internal flights can increase the cost considerably. Planning and constructing an itinerary that flows in

South America: Sacred, stunning, and so surprising For 25 years, G Adventures has opened up the wonders of South America to curious travellers. Our small-group adventure tours allow your clients to get an up-close-and-personal glimpse of this diverse continent in a way they never would on their own. Book your clients’ next adventure to South America with G Adventures. They’ll come home forever changed.

1 300 796 618 gadventures.com.au

The larger tour groups and luxury tour operators also have expansive knowledge and will use local guides in each area, but aim at a different sort of experience and have a different demographic clientele.

I would like to see someone come up with a nice, concise reference book for agents for South America, as it is always handy to be able to have a ‘bible’ of information at your fingertips.

What advice would you have for other agents selling the destination?

Don’t let it overwhelm you! Use whatever resources you can find and ask questions of your clients to qualify what type of holiday they really want. I have learned so much from the suppliers and wholesalers especially, and they are there to guide you if you personally have not been there or experienced the destinations.

South America

PANDAW AND THE AMAZON DREAM Since 1995, Pandaw River Expeditions has pioneered the great rivers of Asia aboard its luxury replica colonial river steamers, hand crafted in brass and teak. But now, in the company’s 20th anniversary, Pandaw is tackling the rivers of South America with new departures in 2016 on the Amazon Dream.

To launch the new partnership Pandaw is offering four departures between January and November 2016, exploring the lesser visited and more scenically varied region of the Amazon River between Santarem and Belem.

Here, the blue waters of the Tapajos River and the mighty Amazon meet for several kilometers, lined by the forests, beaches of

fine white sand and the crystal-clear waters of the Tapajos. Not only will guests discover the natural wonders of the great rain forest with its varied wildlife, flora and fauna including pink dolphins, but like Pandaw’s Asian expeditions, they’ll visit local villages such as Maguari and Munduruku, and discover the way of life of the people who make their lives in the rain forest, accompanied by expert local naturalist guides.

The Amazon Dream carries just 18 passengers and provides a comfortable base from which to explore, for those without walking difficulties. All cabins are air-conditioned and well-appointed and complemented by quality

French-influenced cuisine.

The 14-night ‘Rio to Santarem’ cruise combines nine nights cruising with land arrangements, staying three nights at the five-star Sofitel Hotel, Rio de Janeiro, located on Copacabana Beach, plus excursions to Corcovado and Sugar Loaf Mountain; followed by a flight to Iguazu Falls for a two-night stay at the Hotel das Cataratas, located next to the jaw-dropping waterfalls, and visits to both sides of the falls in Brazil and Argentina.

The trip can be extended with two nights in Manaus and two nights in Salvador. Prices start from US$4315 per person twin share. n www.pandaw.com

GLOBUS RELEASES FIRST SOUTH AMERICA BROCHURE GLOBUS has captured the spirit and passion of Latin America in its first brochure of South American holidays, offering more than a dozen different adventures across the continent – from the ruins of Machu Picchu to the beaches of Rio de Janeiro and the remote wilderness of Patagonia.

To celebrate its new brochure, Globus is offering an early booking discount of 10 per cent on all Globus 2016 South & Central America holidays booked by 1 December 2015.

The new Globus South & Central America 2016 brochure

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travelBulletin OCTOBER 2015

takes the extraordinary sights and cultures of Latin America and offers them with the same premium standard of touring that Globus is best known for in Europe and North America. It also includes itineraries from Globus sister brands – affordable touring options from Cosmos and cruises from Avalon Waterways.

The program also includes a selection of itineraries in Brazil timed in the weeks before and after the Rio 2016 Olympic Games.

Itineraries in the new brochure range from seven to 19 days, and new tours include: Globus ‘Journey to the End of the World’ – a 13-day journey in Chile and Argentina, priced from $5878, combining Santiago and Buenos Aires with some of the world’s most spectacular mountain landscapes in Patagonia. Highlights include a full-day cruise among the fjords and glaciers of

Puerto Natales and a guided hike in the breath-taking Tierra del Fuego National Park.

Cosmos Ecuador ‘From the Andes to the Amazon’ – a 10-day focus on Ecuador’s soaring mountains and wild jungles, including the cobbled lanes and charming colonial streetscapes of its world heritagelisted capital, Quito. Prices from $2239 or $5709 with an additional four-day Galápagos Island cruise.

Avalon Waterways ‘From the Inca Empire to the Peruvian Amazon’ – an 11-day expedition priced from $6659 combining some of South America’s greatest icons including the ruined city of Machu Picchu, the one-time Inca capital of Cusco, the ancient sites of the Sacred Valley and a three-night cruise through the jungles of the Amazon River. n www.globus.com.au

South America

Cruise South America’s west coast Adventure travel pioneer, G Adventures, has announced a new cruise itinerary sailing the coast of South America from Ushuaia, Argentina to Cartagena, Colombia.

The entire voyage is 38 days in total, visiting 21 ports in six countries (Argentina, Chile, Colombia, Ecuador, Panama and Peru) and includes a three-day land-based trip to visit Machu Picchu. Travellers with less time are able to join sectors of the trip for as few as 12 days.

Other highlights include a Chilean rodeo, barbecue and wine experience in Punta

(the new trip) will be ‘especially attractive

to Australian and New Zealand adventurers who want a taste of everything, from wildlife and scenery through to culture, history and food

’

Arenas; an optional fly-over of the ancient Nazca lines in Southern Peru; the opportunity to traverse the Panama Canal, and relax on the idyllic San Blas Islands in Panama.

Belinda Ward, managing director, G Adventures Australia and New Zealand, said the new trip combines the best of South America’s west coast and will be especially attractive to Australian and New Zealand adventurers who want a taste of everything, from wildlife and scenery through to culture, history and food.

“We are really excited about this new South America itinerary because it has such variation, what’s great is travellers can enjoy the full 38-day voyage or jump on for some of the shorter segments that may have a more particular focus,” she explained.

The 38-day trip is priced from $19,999 per person and departs Ushuaia on 21 March 2016, with disembarkation / embarkation ports at Valparaiso (for Santiago) in Chile and Guayaquil in Ecuador. Other South American cruises include a 25-day Santiago to Cartagena journey priced from $12,999 per person, and departing 3 April, 2016. n www.gadventures.com.au

Feel Like A Local

Glimpse Of Chile

Tren Crucero

9 days – departs Bogota From $4703* per person

10 days – departs Santiago From $5248* per person

6 days – departs Quito From $2897* per person

Incredible introduction to Colombia visiting three of its most iconic cities Bogota, Medellin and Cartagena.

Visit the awe-inspiring regions of Patagonia and Atacama Desert.

Enjoy the stunning train journey weaving through the majestic Andes landscapes.

Highlights: • Explore the bustling city of Santiago • Journey through diverse landscapes

Highlights: • Discover 10 beautiful Volcanoes • Experience local ancestral indigenous communities

Highlights: • Dinner at a local family’s home • Visit sites made famous by Pablo Escobar

(Cruise Train)

Contact your destination specialist now on 1300 362 844 | info@tempoholidays.com *Conditions apply. Prices are per person, twin share and subject to availability. Prices are accurate as at 15 Sep 2015 and subject to change without notice. Offers are subject to availability and valid for new bookings only and not combinable with any other offers. Feel like a local travel dates Fridays year round in 2016. Glimpse of Chile operates September – April 2016 (fortnightly), Mondays between 25 Apr - 03 Oct and Wednesdays between 01 Jun 16 - 21 Sep 16. Tren Crucero travel dates are Monday’s 2016 (Fortnightly). All airfares are excluded unless specified in itinerary. Seasonal surcharges and blackout dates may apply depending on dates of travel. Credit card surcharge may occur.

Single supplements are extra and applicable to travellers in single rooms. Final payment is due 60 days prior to ex Australia or New Zealand departure date. Visit www.tempoholidays.com for full Terms and Conditions and current prices. Check out our latest brochures for information on other destinations and inspirational travel ideas. For specific offer terms and conditions or enquiries, please contact us on 1300 558 987 or email res@tempoholidays.com

South America

Travellers want Depth South America is one of the most diverse, culturally-rich continents in the world, offering many unique experiences. As such, many first-time travellers will often find themselves visiting time and time again, or spending a longer time exploring several countries or regions when compared to other popular travel destinations.

“At Adventure World, the number of travellers to South America has grown year on year,” says Neil Rodgers, Adventure World’s general manager.

“The experiences travellers are seeking are in-depth explorations of each country as opposed to the more typical bucket list ticking trips as they are realising the innumerable amount of experiences that the continent has to offer.

Rodgers says the country that has seen the biggest year on year increase is Chile, with growing interest in exploring the geological wonders of Patagonia, with side journeys to visit the Atacama and Easter Island.

“Peru continues to be the most requested and visited South American country, particularly appealing to the environmentally conscious traveller, offering breathtaking

cruising experiences in the pristine Amazon rainforest such as Adventure World’s 4-day Peruvian Amazon River Cruise.

“One of the main appeals of South America to Australian travellers, are the spectacular cultural events and festivals. Brazil will be the most exciting global destination next year, offering the world’s biggest party - the Rio Carnival, to hosting the 2016 Olympic Games. Adventure World’s 5-day Rio Carnival experience allows travellers to witness the spectacular costumes, dance and songs at the samba parades, and be fully immersed in the vibrant Brazilian culture.”

LAN WELCOMES NEW FLEET

LAN Airlines, part of LATAM Airlines Group, recently welcomed its 787-9 fleet as a regular to the schedule on the trans-Pacific route between Sydney and Santiago, Chile.

The 787-9 model replaces the 787-8 bringing with it more capacity and services to transport 27 per cent more passengers between the two regions.

“LATAM is continuously looking for new ways to maintain outstanding inflight services, leadership and commitment to innovation and technology, and we are delighted to receive this next generation aircraft onto our schedule in the Pacific region as part of a wider initiative,” said Patricio Aylwin, managing director Asia Pacific, LATAM Airlines Group.

“The introduction of the 787-9 demonstrates LAN’s continued focus to 52

travelBulletin OCTOBER 2015

feature more efficient aircraft across its network, as well as contributing to our plan of expanding our capacity and presence in this region,” he said.

The introduction of the 787-9 fleet on the route also marks the launch of a new unified look and feel for LATAM Airlines Group cabins in the region. The airline group’s 787-9 fleet is the first to feature this new cabin design.

LAN has configured the 787-9 cabin with 283 Economy Class seats and 30 Premium Business Class seats. LAN Airlines currently operates seven one-stop flights each week from Sydney to Santiago, Chile, with onward connections to over 115 destinations in South America operated by both LAN Airlines and TAM Airlines. n www.lan.com

Copa direct to Mexico In August, Copa Airlines, a member of the Star Alliance network, began direct flights from Panama City to Villahermosa and Puebla in Mexico. The two cities are the airline’s 5th and 6th destinations in Mexico.

The airline will operate the PanamaVillahermosa route three times a week, and the Panama-Puebla route four times weekly.

“Copa Airlines is pleased to launch these new flights between Panama and the Mexican cities of Puebla and Villahermosa. Mexico is a very important market for the company and this connectivity will open enormous opportunities for tourism and business development of these cities,” said Edwin Garcia, vice president of Airport Services, Copa Airlines.

With the new destinations, Copa Airlines operates more than 100 flights a week to Mexico: 14 from Bogota, Colombia and more than 90 from Panama. Copa Airlines now offers service to 75 destinations in 31 countries in North, Central and South America, and the Caribbean. n www.copa.com Meanwhile, last year, Aeromexico began connecting Mexico City with Managua, Nicaragua with six weekly flights, making it the carrier’s fifth destination in Central America.

Earlier this year, the airline began serving the Medellin and Mexico City route with four weekly flights operated with Boeing 737 aircraft; creating the second destination the carrier serves in Colombia.

The carrier has also added Panama to its growing network as its 16th destination in Latin America. n www.aeromexico.com

SOUTH AMERICA HAS NEVER BEEN CLOSER!

SALT MINE, BOGOTÁ, COLOMBIA

·

Rio de Janeiro, Brazil

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Lake Titicaca, Peru

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Salt mine, Bogotá, Colombia RIO DE JANEIRO, BRAZIL

LAKE TITICA

C A, P E R U

LAN Airlines and TAM Airlines form LATAM Airlines Group which serves over 130 destinations in 22 countries.

LAN Airlines offers seven flights per week from Sydney to Santiago, Chile via Auckland and four direct codeshare flights operated by oneworld partner. From Santiago, LAN offers connections to the most wonderful destinations in South America.

CONTACT US:

LAN.com

LAN 1800 221 572

Christmas Holidays

Few experiences encapsulate the festive mood better than the Christmas markets of Europe. BRIAN JOHNSTON tests some of the best.

Kids enjoying the decorations at the Christmas market in Vienna, Austria.

Image courtesy Vienna Tourism Board.

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Christmas Holidays

Each northern winter, millions of visitors flock to Christmas markets in old towns across Europe to shop for traditional goods and food, socialise and listen to carol singers. Many markets have a charming regional character, medieval atmosphere and delightful Christmas spirit like nothing you’ll ever find in a shopping mall. For some festive fun, here are eight of Europe’s best Christmas market destinations that your clients will love for their variety, ambiance and entertainment.

Vienna, Austria

Munich, Germany

Austria’s largest and oldest Christmas market is a lightshimmering, ribbon-strung and often snow-dusted affair in front of the city’s neo-Gothic old town, which looks like a mad ogre’s residence. Carollers mingle with the crowd, singing classics such as Silent Night and O Christmas Tree in their original language. Heart-shape gingerbread, roast chestnuts, apple strudel and nutmeg macaroons are traditional treats.

Few things are better afterwards than a walk back to your hotel under Vienna’s illuminated baroque architecture, especially if it’s snowing.

Germany is undoubtedly the Christmas market epicentre of Europe, with prominent markets in Berlin, Cologne, Dresden, Nuremberg and Stuttgart. For cosiness and Christmas cheer, however, the market in Munich’s old town Marienplatz is hard to beat. Oompah bands and carol-warbling choirs entertain the crowds from the balcony of the gargoyled town hall, and a 30-metre Christmas tree shimmers like a heavenly vision. Good buys include gingerbread and Bavarian crafts such as music boxes and tree ornaments. The adjacent Viktualienmarkt has stomach-warming food such as potato soup, roast sausages and hot apple pies.

Copenhagen, Denmark

Strasbourg, France

The Danish capital has numerous Christmas markets but, for the best winter wonderland experience, head to Tivoli Gardens. The endearingly retro amusement park sparkles with 50,000 fairy lights and hundreds of illuminated trees, and the lake transforms into a skating rink where you’re serenaded by classical music as you spin. Market stalls sell candles, crafts, thick sweaters and wooden dolls, and Tivoli’s eateries tempt with apple dumplings, meatballs and mulled wine. Jolly old St Nick makes appearances, and you’ll feel like a kid again.

Paris has some good Christmas markets (try the ChampsÉlysées and La Defense), but Strasbourg hosts France’s oldest Christmas market, running since 1570. It also has an unbeatable location, right beneath the mindboggling façade of Strasbourg cathedral in the heart of the old town: a slice of the medieval come to life. Locals shop for seasonal goodies such as pheasant, duck, venison, seafood and foie gras for the Christmas table, but you might want to make do with candied fruit, chocolate truffles and giant, salt-encrusted pretzels.

Bruges, Belgium

Bologna, Italy

Bruges’ central Markt is a ludicrously cute European square: gabled houses look as if they’re made of gingerbread, and a medieval belfry soars. Add market stalls that look like miniature chalets with light-draped eaves, and plenty of seasonal spirit results. Buy woollen socks and gloves, beer mugs, glass ornaments and jewellery. Goodies to gorge on include chocolate Santas and honey waffles, while a nip of the local jenever gin will get up your courage for a turn on the skating rink, which might just be the prettiest piece of ice on the continent.

Christmas markets are generally seen as a central and northern European specialty, but Bologna has a splendid market in the shadow of its baroque cathedral. The Fiera di Natale sells the usual Christmas baubles but stands out for its food, as you’d expect in a city nicknamed ‘The Fat’ for its cuisine. Marzipan fruit, nougat enrobed in dark chocolate (torrone) and short-crust pinza filled with marmalade are delicious. There’s another smaller market around the Church of Santa Lucia, and a big New Year’s market on Piazza Maggiore.

travelBulletin OCTOBER 2015

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Christmas Holidays

Prague, Czech Republic

Montreux, Switzerland

Several Christmas markets enliven Prague over December, but the one in its central town square, sheltered by baroque buildings and medieval towers on all sides, is magical.

It features numerous concerts, cultural events and kids’ activities (such as ornament making) as well as a life-size manger scene featuring real animals, making this a top market for families. Lovely souvenirs include Bohemian crystal, embroidered lace, wooden toys and puppets. There’s also hot-wine sipping and the chance to devour spit-roasted pork and sugar-coated pies.

Each year, Switzerland puts on some of Europe’s most spectacular Christmas events and festivities that see locals and visitors celebrate the season in every city, town and village across the country. Vibrant and colourful Christmas markets can be found in the major cities of Zurich, Lucerne, Bern and Basel, but a highly popular destination during the festive season is Montreux, on the picturesque shores of Lake Geneva. Decorated stalls selling traditional Christmas treats, a variety of Swiss cheeses and mulled wine, handicraft, gift hampers, games and live music, all add to magical festive atmosphere. Cheers!

Fly the Fly theto Europe to Europe Earlybird Earlybird FaresFares

onfrom to the Air India Return fares es starting ting Return ffrom faresLog starting Australia Facebook Page in October for a chance to win a free ticket to London

Milan Milan

$1267*

$1267*

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$1281*

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Paris Paris

$1306*

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France France

$1350*

$1350*

Birmingham Birmingham $1406*

$1406*

London London

$1468*

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Hotel accommodation provided on outbound at Delhi Airport airside Hotel Eatonsmart.

Indian Visa not required for transiting passengers.

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Hotel accommodation providedHotel accommodation provided on outbound at Delhi Airport on outbound at Delhi Airport airside Hotel Eatonsmart. airside Hotel Eatonsmart.

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Christmas Holidays

Winter holidays on location Holidays On Location has just released its new Winter Touring brochure featuring new tours in Switzerland, Austria, Germany and Belgium and the opportunity to experience a white Christmas in Europe.

John de Steiger, manager of business development for Holidays On Location says winter travel is becoming more and more popular with Australian travellers, particularly families.

“Winter in Europe is provides an excellent opportunity to avoid the peak season crowds and experience unique winter attractions.

Christmas in Europe has a sense of occasion which is embraced g in ur by families to r Winte and Australian travellers can have a rather different Christmas experience.”

Additionally, a range of special interest tours and packages are on offer 36 including deer viewing and 2 0 15 - 1 6 feeding in | FRAnCe h RepUblIC AUSTRIA | CzeC hUnGARY GeRMAnY | zeRl AnD ITAlY | SWIT DOM UnITeD KInG

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Swiss Christmas break

Salzburg, horse drawn sleigh rides, and a Silent Night - Holy Night Christmas Eve tour taking part in the annual memorial service in honour of the creators of the carol at the Silent Night Memorial Chapel in Salzburg.

De Steiger advises agents to book early, and to ask the company for any special requests as they can tailor-make itineraries.

He also says that agents should keep in mind the emerging Eastern German destinations like Dresden.

A three-day Christmas at the Schönbrunn Vienna City Package is priced from $239 per person and includes two nights’ accommodation at Hotel Courtyard by Marrriott Schönbrunn, breakfast daily, a Christmas culinary deluxe package and beautiful Schönbrunn Christmas souvenir mug, entrance and guided tours of the palace rooms, and all service charges and taxes. Departures from 22 November - 26 December 2015.

Clients can follow up with a five-day New Year in Salzburg package priced from $1230 per person. Departures from 29 December 2015 - 2 January 2016.

A wide range of tours also include the Christmas Markets in Austria and Germany. n www.holidaysonlocation.com

Clients can celebrate this Christmas amongst the alpine peaks staying in a delightful wooden chalet style hotel in the heart of the magnificent Swiss Alps on an 8-day festive holiday package available from Albatross Tours.

They can experience special train rides through the magnificent mountains and lakes to Montreux, Luzern and medieval Bern; visit Christmas markets; see Interlaken and Lake Thun.

The package includes seven nights’ accommodation, buffet breakfast and four-course dinners daily, including special Christmas meals and train excursions on the Swiss rail system.

Prices for this unescorted tour start from $2,089 per person twin share, departing via rail from anywhere in Switzerland to either the village of Wilderswil or Lauterbrunnen on 21 Dec 2015. n www.albatrosstours.com.au

Your Destination Specialist Integrity & Commitment

www.holidaysonlocation.com | 1300 65 10 65

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27/11/14 1:49:54 PM

Christmas Holidays

a white Christmas with scenic Scenic is offering a number of luxury cruises and land tours in 2015 and 2016 for guests to experience a true European winter or a traditional Canadian white Christmas.

From charming villages to great cultural centres, guests can sail the grand European waterways on a 15-day ‘Christmas Markets’ river cruise from Amsterdam to Budapest, and enjoy the festive sights and sounds along the way. They’ll wander the beautifully lit towns, sample festive delicacies such as mulled wine and hot chestnuts, and shop for handmade gifts and decorations in the traditional markets of Cologne – home to the largest Christmas tree in Germany - as well as Rothenberg, Nuremberg and Vienna.

Those wanting to spend Christmas Day and New Year’s Eve in Europe; can soak up the festive atmosphere on board a Scenic Space Ship on a 16-day ‘Christmas and New Year’ river cruise from Amsterdam to Budapest. Christmas Day is celebrated in the city of Linz in Austria complete with traditional Christmas dishes and midnight mass, followed by a couple of days taking in the breathtaking city of Prague before ringing in the New Year.

Scenic is offering ‘Fly Free to Europe’ on all its Christmas river cruises including those with city extensions in Prague and Paris.

Alternatively there’s the chance to experience a traditional white Christmas in the Canadian mountains on a ‘Christmas in the Rockies’ tour. The journey from Victoria to Calgary includes a night aboard the Snow Train from Vancouver to Jasper; a sleigh ride along the lakeside trail to the end of majestic Lake Louise; and a traditional Christmas Day brunch and dinner at either the Fairmont Banff Springs or the Fairmont Jasper Park Lodge.

Aleisha Fittler, GM Product, commented: “Christmas and New Year is a really popular time for people to travel with many people choosing to get away so they don’t have to worry about anything at this really busy time of year. It is particularly popular for families and we often have multiple generations sailing with us at Christmas. We love that our guests choose to spend it with us and go out of our way to make their festive experience extra special.” n www.scenic.com.au

Fairmont Chateau Lake Louise, image courtesy Scenic

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Austria Christmas Markets, Bryan Reinhart

A&K’S Christmas Spirit Luxury travel company Abercrombie & Kent is inviting everyone to get into the Christmas spirit early, with a private journey to some of Europe’s most famous Christmas markets.

An A&K Guardian Angel is on hand throughout to help navigate the profusion of stalls so shoppers can find that perfect Christmas gift.

A&K’s 7-day Berlin, Dresden and Prague market tour starts in Berlin, which has more than 50 Christmas markets, some which are traditional and others more hip and happening.

In Prague, the Old Town Square plays host to a festive market of brightly decorated wooden huts, selling Czech handicrafts, hot food and warm drinks, and at 5pm every evening the beautiful lights of the Christmas tree are turned on.

As well as visiting the festive Christmas markets, A&K includes private city touring, luxury accommodation at the elegant Hotel De Rome in Berlin and Aria Hotel Prague, stylish transport between the cities and A&K’s signature Guardian Angel service.

Valid for travel from 1 November to 13 December 2015. n www.abercrombiekent.com.au

Celebrate Christmas in Europe

Limited space available for Christmas 2015!

Christmas in the Slovenian Alps 11

Over $1,100 extras included!

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Over $800 extras included!

Why recommend our Christmas tours?

DAYS

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BOOK NOW! Limited space is still available for 2015 or pre-register now for 2016!

Call 1300 135 015 www.albatrosstours.com.au travelBulletin OCTOBER 2015

59

Singapore

Left: Singapore’s Chinatown is a mix of pockets of the past and today with street hawkers and narrow dingy alleyways sitting side by side with more modern sights of coffee shops and hipster bars.

Left: The Singapore Grand Prix happens every September and is much more than just a Formula 1 race, with concerts and glamorous parties held around the race time.

More than a stopover Often considered a stopover on the way to somewhere else, LEE MYLNE finds that even a few days in Singapore simply isn’t enough.

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N the tiny unspoilt island of Palau Ubin, the skyline of Singapore looks deceptively distant. Maybe, I muse as I pause in my cycling exploration of this oasis, it’s just because Palau Ubin is not what we expect from Singapore.

Overhead, aircraft are heading for the international hub of Changi Airport and just a few days before I’d been aboard a Scoot Dreamliner from the Gold Coast, one of more than a million travellers from Australia who visit Singapore each year.

For those – like me – who’ve always thought of Singapore as “just a stopover”, spending time in this city-state is a 60

travelBulletin OCTOBER 2015

revelation. On my first trip to Singapore in nearly a decade, I find myself with several days in which to explore.

Staying in the Balestier district, I find a neighbourhood vibe that offers plenty to do beyond the bustle and shopping of Orchard Road.

I hotel-hop a bit, staying first at the threestar Days Hotel Singapore at Zhongshan Park, a great location with easy access to the nearby Novena MRT station (and a free shuttle if you don’t want to walk; I recommend taking it). While taxis are incredibly cheap by Australian standards, the MRT is easy to use and offers discounted daily and monthly tickets.

My room at the Days Hotel is smart, bright and comfortable, but quite small. Later I move next door to the Ramada Singapore, which offers a higher level of luxury and more spacious rooms. Both hotels are operated by Wyndham Hotels and offer similar services, including free Wi-Fi and shuttles.

They are also on the Balestier Heritage Trail, one of several trails curated by the National Heritage Board of Singapore. I grab a trail map from the hotel reception and head out for a few hours to explore the neighbourhood, my wanderings taking me to a small temple (dating back to 1847), past traditional and art deco shop houses, to a Malay coffee house, bakeries, a herbal shop

Singapore

Left: Soaring high above the crowds, you can’t miss the massive tree shaped vertical gardens of the Supertrees in the Gardens by the Bay.

Right: The merlion statue is the symbol of Singapore. There are seven official statues located around the city, the original in front of Fullerton Hotel overlooking Marina Bay.

and into the bustling Balestier Market for a lunch of chicken rice, the local delicacy.

Other highlights, just behind the hotels, are an elaborate Burmese Buddhist temple, and the Sun Yat Sen Nanyang Memorial Hall, once the headquarters of the Chinese Revolutionary Alliance and now a museum.

It seems fitting, as Singapore celebrates 50 years of independence, to find out more about its past and future, so I head to the Singapore City Gallery. This amazing gallery tells the story of Singapore’s physical transformation over the years, with scale models of the entire city, images, sight and sound shows and more.

The gallery is on Maxwell Road, just cross from the Maxwell Hawker Centre, another great place to pick up a street food meal.

In Chinatown, walk down South Bridge Road from the Buddha Tooth Relic Temple and Museum (don’t miss going upstairs to the rooftop garden) to the Hindu Sri Mariamman Temple and further to the Jamae Mosque.

But the biggest surprise Singapore has for me is its green spaces, and nowhere

demonstrates this more than the island of Palau Ubin. A SG$16 taxi ride takes me from my hotel to the Changi jetty, where I wait until the required 12 passengers turn up for the ferry. From there, it’s a SG$2.50 fiveminute boat ride to the island. Bicycle hire

For those – like me – ‘who’ve always thought

of Singapore as “just a stopover”, spending time in this city-state is a revelation

’

shops are waiting and for another SG$2 I’ve soon got a set of wheels.

Another green place is the lush Singapore Botanic Gardens, established in 1857.

These traditional gardens are worth a look, especially if you are an orchid-fancier.

Don’t miss the Gardens by the Bay, built on more than 100ha of reclaimed land. This is a public garden like no other and the best

time to go is at night, when the Supertrees – festooned with vertical gardens and reaching between nine and 16 storeys - come alive with a stunning light and sound show.

The show happens twice each evening, at 7.45pm and 8.45pm. Get there early enough to take the lift to the Skyway (entry is $5) for one of the best views in Singapore from 22-metres high.

To cap off the night, walk across to Marina Bay Sands – just head towards the distinctive outlines of this architectural marvel – and have a drink at the rooftop bar overlooking the city.

Visiting Singapore as it prepared to celebrate the 50th anniversary of independence in August meant there were plenty of special SG50 events to choose from, but after a few days exploring, I’m willing to bet that Singapore is this lively almost all the time.

And I’m also aware that my four days only just skimmed the surface; there’s plenty more to see and do in Singapore, so the only option is to plan a return visit. travelBulletin OCTOBER 2015

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Singapore

Q&A

Cheap flights and a range of affordable accommodation are drawing more Australians to spend more time in Singapore. NXGen business leader Jamie Sutherland explains why.

What are the main draw cards for Australians travelling to Singapore?

At the moment it is a good choice of cheap flights from most ports within Australia and the large choice of activities once you arrive. An on-par dollar, year-round 30-degree climate and comfortable flight time also help.

What are your top tips for selling the destination to clients?

Singapore has really evolved as a destination. We may have sent clients there in the past just for the shopping, however now it’s choice that Singapore really offers. We have a large array of

accommodation options to offer from good value three-star properties through to six-star luxury. Eco-tourism is another growing sector. The Singapore Zoo is one of the best in the world, while for families Sentosa Island offers so much including great theme parks, beaches and a great choice of resorts.

What experiences do you recommend as a ‘must’ for your clients?

No trip to Singapore is complete with sampling the signature dish, chilli crab, at Clark Quay. Singapore is as cosmopolitan as they come and a visit to Little India, Arab Street and Club Street will unveil the

many different cultures of Singapore.

Is it easy to sell Singapore as a holiday destination rather than just a stopover?

For so long Singapore has been perceived as a stopover destination however this is definitely changing. Once you start delving into what you can do in Singapore, it soon becomes clear you are going to need more than three or four days to really see the best of Singapore. The challenge is ensuring our customers understand how much time they need to truly see today’s Singapore.

Blooming lovely To celebrate the harmony of nature, Gardens by the Bay will present a symphony of floral displays underscored by various musical and dance performances throughout 2016.

Dahlia Dream (15 January - 28 February), celebrates the Chinese New Year of the Monkey, with a garden of dahlias blooming in abundance. March sees the introduction of Blossom Beats, featuring for the first time in Singapore, a display of exquisite cherry blossoms blooming pretty in pink.

Singapore’s largest tulip festival returns from 8 April - 22 May, with Tulipmania with a Sufi Spin. The Lilytopia Retro Revival (3 June - 10 July) will star super-sized lilies in a mix of electric hues; while Songbird Serenade (22 July - 28 August) celebrates Singapore’s National Day with orchids flourishing in concert with the country’s soundtrack. Tribal Tempo (9 September - 30 October) sees brilliant proteas in a celebration of South Africa; finishing the year with the delightful dollhouses of Merry Medley (11 November - 5 January 2017). n www.gardensbythebay.com.sg

Singapore Tourism Board

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Singapore celebrates 50 AUSTRALIAN travellers kept travel agents busy this year as they helped Singapore celebrate a “happy 50th birthday”, marking the golden jubilee of the island nation’s independence.

More than a million Australians visit Singapore each year, with the most recent visitor figures showing an upward trend with an increase of seven per cent in 2013.

The 2013 visitor arrival figures showed 1.125 million travellers from Australia visited the island city-state.

Singapore continues to be an attractive destination for everyone, with International Visitor Arrivals (IVA) totalling 15.6 million for 2013.

Australia continues to be the fourth-highest international visitor market for Singapore, behind Indonesia (3 million), China (2.27 million) and Malaysia (1.28 million). Australians also continued to spend, topping S$1 million.

And Australians are finding more reasons to stay longer, with the average length of stay increasing steadily from 2.89 nights in 2010

to 3.2 nights in 2014.

“We’re thrilled that increasingly more Australians are visiting our city and we’re excited to present the diverse range of experiences, from food, entertainment and attractions through to cultural festivals and nightlife that Singapore offers all-year round,” said Singapore Tourism Board area director Oceania, Sharon Lam. With eight airlines linking Australia and Singapore, access has never been easier for Australians, with new air routes opening up in recent months. Qantas reintroduced five weekly return Perth-Singapore flights in June, and Silkair launched a new route between Cairns and Singapore in August.

The cruise market is also booming. Royal Caribbean International has recently signed a multi-million dollar marketing collaboration with the Singapore Tourism Board and Changi Airport Group to promote cruising out of Singapore to a burgeoning fly-cruise market.

LAST WORD

Celebrity spotting

FUN Facts:

Did you know…

One third of all the airports in the world are located in the United States.

Adding salt and pepper to your food is considered highly offensive to chefs in Switzerland.

The world’s largest swimming pool is part of The San Alfonso del Mar seaside resort in Algarrobo, Chile and stretches 1km in length and holds 250 million litres of water.

The Sheikh Zayed Grand Mosque in Abu Dhabi can hold 40,000 worshippers at one time.

Walt Disney World Resort in Florida can fit two Manhattans or one San Francisco inside it.

Coffee is very popular in Japan. In fact, Japan imports approximately 85% of Jamaica’s annual coffee production.

In the 1980’s, American Airlines saved $40,000 a year by removing one olive from each in-flight salad.

Send your celebrity pics to celebrity@travelbulletin.com.au and keep your eye out for the next issue of travelBulletin.

KENKEN

Personal Travel Manager Nicole Edgar was snapped recently with tennis legend Roger Rasheed. Nicole met the famed Australian tennis player and coach at the TravelManagers’ “sporting” themed dinner on August 29 this year held at the Adelaide Oval function room.

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Most of the world’s macadamias are grown on Hawaii’s Big Island.

The mortar used to bind the stones together in the Great Wall of China was made out of rice flour.

Sri Lanka has been known for its production of cinnamon since ancient times. Today the country produces 80-90% of the world’s supply.

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Fill the grids with numbers without repeating any number in any row or column, and so that the numbers within each heavily outlined box will produce the target number shown by using addition, subtraction, multiplication or division (as indicated in the box). A 4x4 grid uses the numbers 1-4, and a 6x6 grid uses 1-6.

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