SEPTEMBER 2014
dubaitourism.com
MAKE AN EVENT OF IT Timing is everything, and organising your client’s Dubai holiday to run alongside one of the city’s amazing events or festivals is a sure-fire way to create remarkable and unforgettable experiences.
dubaitourism.com
DUBAI CALENDAR OF EVENTS If your client is a tennis fan, watching Djokovic and Federer battle it out for the Dubai Duty Free Tennis Championships may hold some appeal. Golfing fans will jump at the opportunity to catch Rory Mcllroy tee off at the Omega Dubai Desert Classic, or see their favourite A-list band. Events like these can transform a great trip into a remarkable holiday – and it will keep your clients begging for more. Keep an eye on www.dubaicalendar.com for the latest schedule. Here’s a sneak peak:
Dubai International Film festival (DIFF) – 10-17 December 2014 Film buffs, switch on! Catch a world premiere and schmooze with the world’s top film producers, directors and actors. Q www.dubaifilmfest.com
Dubai Food Festival – 8-28 Feb 2015 This is no time for dieting. For 21-days the whole city serves up a full course of food-related fun events showcasing the Emirate’s diverse food offering. Q www.dubaifoodfestival.com
Dubai Duty Free Tennis Championships – 16-28 Feb 2015
DP World Tour – 20-23 Nov 2014 Follow the world’s top golfers as they walk the beautiful Earth course at Jumeirah Golf Estates. Watch the European Tour’s top 60 golfers battle it out to take home the prestigious Race crown. Q www.europeantour.com
It’s game, set and match to anyone who combines a trip to Dubai with this iconic tennis tournament. Q www.dubaidutyfreetennischampionships.com
Omega Dubai Desert Classic – 26 January to 1 February 2015 Each year, thousands of spectators come to watch this event roll out at the stunning Emirates Golf Club. Q www.dubaidesertclassic.com
Emirates Rugby Sevens – 4-6 Dec 2014
Dubai Shopping Festival (DSF) – 1 January to 1 February
Watch the non-stop, high-octane action of the second round of the HSBC Sevens World Series at the Sevens Stadium. Q www.dubairugby7s.com
Celebrating its 20th anniversary in 2015, DSF is not only a shopping extravaganza, but also a huge family festival. Q www.mydsf.ae
Make a song and dance about it Dubai’s music schedule packs a punch. The Sandance season kicks off in October, the Blended music festival is returning in April and One Direction are playing at Dubai’s Sevens Stadium on April 4, 2015. Q www.doneevents.com Q www.sandance.ae
SEPTEMBER 2014
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CONTENTS
From the managing editor Bruce Piper
Welcome to the new look travelBulletin
18 COVER STORY The Million Dollar Club
FEATURES 20
Technology
32
South America
42
Dubai
45
China
50
Apartment hotels
MONTHLY 02
State of the industry
06
Issues and trends
16
Travel management
26
Cruising report
28
Industry in focus
31
Brochures
54
The last word
COLUMNS 02
Ian McMahon
06
AFTA View
19
TTF View
26
Brett Jardine
TRAVELBULLETIN was born ten years ago, with founders Eddie Raggett and Ian McMahon building it into Australia’s most respected travel trade magazine. Now they have passed the baton on, and we are proud to bring you this launch edition which continues travelBulletin’s unrivalled reputation as the industry’s in-depth journal of record and analysis. We believe that with travelBulletin now part of the Travel Daily family we are ideally positioned to deliver everything the industry needs – daily electronic news updates complemented by monthly insights into major trends, destination updates and industry conference features. Since taking over it’s been an exciting time. The look and feel of travelBulletin has been tweaked, and it’s been a busy few weeks getting this launch edition together with a fresh new design and convenient A4 size. There’s also an updated travelBulletin website and we’re dipping the publication’s toe into social media too. What’s unchanged is our steadfast commitment to honest, unbiased reporting and insight into the rapidly changing travel sector. In this issue’s cover story Ian McMahon, who will be continuing as travelBulletin’s Editor at Large, looks into the fine print of the annual reports of some of the industry’s biggest companies and lifts the lid on what the bigwigs are paid. travelBulletin’s new co-ordinating editor, Louise Wallace, has covered the latest topics in agency groups, cruise, technology and more, and we also have some great destination features – including travel consultant selling tips – from travelBulletin’s stable of respected writers. travelBulletin’s regular contributors continue, with columns from AFTA ceo Jayson Westbury, an update from TTF acting ceo Trent Zimmerman and we have also added a regular comment piece from CLIA general manager Brett Jardine in our new cruise pages. We also have some exciting new features including ‘industry in focus’ photos, some fun on the Last Word inside back page and of course a fabulous opportunity to win a business class trip for two to Thailand, courtesy of Thai Airways International and Sofitel. The new travelBulletin team looks forward to a bright future, and we thank you for your ongoing support. We would welcome any suggestions or contributions so please let us know what you think!
This month’s contributors Guy Dundas, Matt Lennon, Jayson Westbury, Brett Jardine, Jenny Burns, Lee Mylne, Trent Zimmerman, Judith O’Neill, Gary Walsh
www.travelbulletin.com.au Travel Bulletin is part of the Travel Daily family of publications
EDITORIAL Managing Editor – Bruce Piper bruce.piper@travelbulletin.com.au Co-ordinating Editor – Louise Wallace Ph: 02 8090 3125 louise.wallace@travelbulletin.com.au Editor at Large – Ian McMahon Ph: 03 9568 4464 or 0414 320 321 imcmahon@travelbulletin.com.au
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travelBulletin SEPTEMBER 2014 1
STATE OF THE INDUSTRY ME troubles, Ukraine, Ebola loom as threats to international air traffic growth
Ian McMahon’s perspective
QF ‘line in the sand’ to go AT a travel industry function late last month a highly successful suburban travel retailer told me he had lost a lucrative booking because a rival agent undercut the best fare he could offer to New York by $600. It was the same week that the agent hawking the drastically discounted fare (Flight Centre) announced a record “underlying profit” of more than $375 million and the airline concerned (Qantas) posted a staggering loss of $2.8 billion. There are all sorts of sweeping generalisations that could be made about the conjunction of these three events. The one that I choose to make is this – In times of airline overcapacity, agents, particularly big and powerful agents prepared to ruthlessly extract the best deals they can, do well. And they do so at the expense of carriers desperate to unload that most perishable of commodities: empty airline seats. As with every sweeping generalisation, there are holes to be picked. Agents doing well? What about the $60 million or so lost by Helloworld last financial year? (Fair point, but Helloworld does seem to be the only agency group contriving to lose money in the present climate.) At the expense of airlines? Qantas’ huge
losses are a sad footnote to the fact that the world’s carriers are collectively on track to record total profits of $US18 billion. Nevertheless I adhere to the thesis that the amount of capacity in the market is the key determinant of the prices airlines can charge, the deals agents can do and, ultimately, what consumers pay. On the international front, demand now seems to have caught up with the flood of airline seats that Middle East carriers brought to our market in recent years with Travel Daily reporting their aircraft are now flying out “chokkers”. But who knows what capacity increases lie ahead? However, domestic capacity is controlled by Qantas which saw domestic earnings fall by $335 million to $30 millon; and Virgin Australia which reported domestic losses of nearly $87 million. That’s what happens when passenger numbers increase by 5% and seats grow by 8% in what Virgin boss John Borghetti called “the war that had to happen when you have a dominant player that wants to maintain its position”. But it seems financial realities will now see Qantas walking away from that foolhardy “line in the sand” of 65% market share. Put another way, domestic fares are about to go up.
THE Ebola outbreak in West Africa, weakness in the Eurozone, hostilities in Eastern Ukraine and instability in the Middle East loom as threats to a buoyant international air travel market, IATA has warned. The world airline body’s alert came amid an upbeat assessment of global passenger traffic, with results for July showing international passenger demand rose by 5.5% compared to the same month in 2013. Airlines piled on more seats at an even faster rate, outstripping demand growth with a capacity expansion of 6.2%. This produced a slight weakening of the load factor to 81.9% (down 0.5 percentage points from a year ago), but still at “a very high level”, said IATA. IATA director general Tony Tyler called the result “a positive story”. In this region, Asia Pacific carriers achieved passenger growth slightly above the global average at 5.6%, prompting carriers to add more flights and ultimately increase capacity by 6.8%. As a result, average load factors fell 0.9 percentage points to 78.9%. The biggest factor affecting demand developments in this part of the world is the response of the Chinese economy to stimulus measures which saw year-on-year GDP growth reach 7.5% in July, IATA reported. The top performing region was the Middle East where solid growth in business-related premium travel helped drive traffic growth of 9.2%. Also doing well was Latin America where airlines took a conservative approach to capacity – increasing seats by 6.6% to meet
BUSINESS MONITOR OUTBOUND MARKET
INBOUND MARKET
MAIN DOMESTIC ROUTES
Top 10 destinations, June 2014
Top 10 sources, June 2014
Top 10 domestic city pairs at June 2014
Destination
Trend Seasonally Original Trend Adjusted May 14/ Jun 14 000 000 000 % Indonesia 90.9 91.5 100.1 +1.0 USA 78.0 78.4 93.1 +1.0 UK 44.3 45.9 80.9 +0.6 New Zealand 99.1 99.4 76.9 -0.3 Thailand 50.8 49.9 51.0 +0.1 Fiji 29.1 29.4 33.4 +1.5 Italy 14.8 15.3 30.8 +0.7 China 33.9 33.9 29.8 +0.6 Singapore 31.0 28.6 27.4 -2.6 Malaysia 25.9 26.4 25.7 +0.1 All outbound 759.6 769.7 874.3 +0.3
Source: Australian Bureau of Statistics
2 travelBulletin SEPTEMBER 2014
Trend Jun 13/ Jun 14 % +15.4 -2.7 -7.0 0.0 -3.5 0.0 -0.3 +3.2 +8.6 +14.8 +4.0
Source
New Zealand China Singapore USA Malaysia UK India Japan Indonesia South Korea All inbound
Trend Seasonally Original Adjusted 000 102.9 68.5 32.1 44.9 28.3 53.9 16.9 27.5 12.8 16.3 574.1
000 101.4 70.0 32.6 43.2 30.5 52.8 17.2 27.6 12.4 15.5 565.0
Source: Australian Bureau of Statistics
000 93.4 45.3 44.3 39.6 26.7 25.0 17.0 16.4 13.8 12.8 452.4
Trend Trend May 14/ Jun 13/ Jun 14 Jun 14 % % -0.7 +7.7 +0.3 +7.7 +0.5 +15.7 -0.7 +12.7 +2.5 +31.8 -0.8 +3.7 +2.4 +23.5 +0.6 +3.7 +1.3 +12.4 +0.9 -2.2 +0.1 +9.5
City pair
Melbourne-Sydney Brisbane-Sydney Brisbane-Melbourne Gold Coast-Sydney Adelaide-Melbourne Melbourne-Perth Perth-Sydney Adelaide-Sydney Gold Coast-Melbourne Hobart-Melbourne Source: BITRE
Passengers Passengers % change YE Jun13 YE Jun 14 13/14 (000) 8,200.6 4,426.4 3,162.5 2,541.8 2,114.8 2,216.5 1,804.8 1,753.6 1,735.9 1,337.2
(000) 8,280.3 4,454.2 3,276.2 2,588.5 2,242.4 2,193.9 1,805.3 1,778.7 1,713.6 1,391.9
+1.0 +0.6 +3.6 +1.8 +6.0 –1.0 0.0 +1.4 –1.3 +4.1
STATE OF THE INDUSTRY 6.7% passenger growth for an average load factor of 82.5%. Tyler expects “continued solid growth” over the remainder of 2014, but he warns: “We cannot ignore, however, the risks that could derail this trajectory… “Airlines are on track to record a profit of some $US18 billion this year. But that is a net profit margin of just 2.4% which does not provide much of a buffer.”
Magellan agents to share record $6 million profit MAGELLAN Travel Group agents will arrive at their 2014 annual conference in Canberra next month buoyed by the news that they are to share $6 million among themselves. That’s the net profit figure announced late last month by the boutique chain of high-end leisure and corporate agencies. Most Magellan agents are former members of what is now helloworld, and the stark contrast between the fortunes of both groups is something which they are surely aware of. Magellan’s announcement of a 45% profit increase virtually coincided with Helloworld’s release of 2013/14 accounts showing $61.2 million in pre-tax losses. Magellan chief executive Andrew Macfarlane said: “This is the sixth consecutive year of double digit growth in membership and profit, and clearly the word is spreading about the value we offer independent agents. “We are the fastest growing group in Australia with a further 40 travel agencies joining us in the last year, taking us to 116 member agents around Australia.” Magellan had previously floated a notional ceiling on membership of 100 agents – although its founders have always been careful to stress: “Don’t hold us strictly to that figure”.
Travel agents skip winter in Oahu THESE Aussie travel agents skipped winter and made a break for Oahu on a six-day famil, courtesy of Creative Holidays and Hawaiian Airlines. Pictured at Mokolii Island from left (back): Meredith Salotto, Hawaiian Airlines; Rob Nangle, Travel Design International;
Stephen Ross, Wall Street Travel; Michelle Hansen, Aurora Travel. Middle from left: Natasha Steed, Benalla Travel; Julie-Anne Major, Epping Travel; Glenda Halliwell, The Travel Centre. Front from left: Andrew Sims, Creative Holidays; Anne Rogers, Wings Away Travel.
Macfarlane said the group will keep growing but with “the right agents”. He stressed: “Our niche strategy is unchanged and our members are all mid-size and above, high-end leisure, corporate or both.”
is a reference to what he calls “a no hype comparison grid” at the front of the brochure released last month. He claims it gives an unbiased comparison of the range of Europe coach tour options available to travellers. So unbiased, he says, that some will likely conclude a Bunnik tour is not for them. “We acknowledge that a Bunnik tour is not for everyone. We don’t want every customer. We want those who are right for our product
Bunnik claims ‘overwhelming’ trade response DENNIS Bunnik is upfront that his company is “courting controversy” with the release of its latest Europe program. This admission by the managing director of independent wholesaler, Bunnik Tours,
Continues over page
BUSINESS MONITOR INTERNATIONAL AIR MARKET SHARE
DOMESTIC AIR MARKET – June 2014
International passengers by major airline – year ended June 2014 Qantas Airways, 16.4% Others, 26.2% Emirates, 9.5% Thai Airways International, 2.8%
Singapore Airlines, 8.8%
AirAsia X, 4.2% Malaysia Airlines, 4.4% Cathay Pacific Airways, 4.7% Air New Zealand, 7.6%
Source: BITRE
Jetstar, 7.7% Virgin Australia, 7.7%
Jun 13 Total pax movements Revenue pax kms (RPK) Avail seat kms (ASK) Load factor (%) Aircraft trips (000)
Jun 14
Growth (%)
4.51m 4.49m 5.34bn 5.3bn 7.08bn 7.24bn 75.4 73.2 51.8 52.3
-0.4 -0.8 +2.3 -2.2* +0.8
Yr to Jun 13
Yr to Jun 14
Growth (%)
57.1m 57.7m 67.2bn 68.1bn 87.6bn 89.5bn 76.7 76.0 642.0 643.1
+1.0 +1.3 +2.3 -0.7* +0.2
Source: BITRE * Percentage points
Domestic On Time Performance – July 2014 Jetstar Qantas QantasLink Tiger Virgin Aust All Airlines
Departures on Time No. %
Arrivals on Time No. %
Cancellations No. %
5977 8129 9095 1392 9167 40,957
6059 8009 8814 1304 9058 40,275
45 154 210 23 323 830
83.8 84.4 84.6 74.2 81.7 83.5
85 83.1 81.9 69.5 80.7 82.1
0.6 1.6 1.9 1.2 2.8 1.7
Source: BITRE
travelBulletin SEPTEMBER 2014 3
STATE OF THE INDUSTRY Continues from previous page
HELLOWORLD HITS CHINA and this [comparison grid] helps people make the best holiday choices,” he told travelBulletin. He noted an “overwhelming response from the trade” because consultants were assisted in guiding clients towards “the right choices”. “There’s too much that’s all about numbers and getting sales as quickly as possible,” he said. “People appreciate getting good advice and seeing that there are choices beyond the big three or four mainstream operators.” ■ The comparison grid was not the only innovation accompanying the release of Bunnik’s 2015 Europe small group tour program. The company also announced a reduced maximum of 20 passengers per tour – full story, page 12.
Project ‘New Org’ – accommodation industry seeks new, united voice “NEW Org” is the internal shorthand being used by accommodation industry leaders as they deliberate on the formation of a new representative body that will cover all sectors of the industry and give it a single, united voice. Behind the scenes moves culminated this month in the public announcement that Tourism Accommodation Australia (TAA) and the Accommodation Association of Australia (AAA) are engaged in discussions about the formation of a joint venture. TAA was set up three-and-a-half years ago within the Australian Hotels Association (AHA) to give Australia’s major hotel operators a distinctive identity separate from the pubs and clubs that comprise the association’s
THESE Helloworld agents got their share of heritage sights and rice terraces on a recent China famil, courtesy of China Southern Airlines. Staying at Club Med Guilin, the agents tested their skills at mahjong, tai chi and rock climbing, and put their creative flair to the test at an art workshop. Pictured from left: Jordan Stephens,
numerical strength. At the same time the Hotel Motel and Accommodation Association rebranded as AAA. The result, all sides now agree, has been confusion and dissipation of the message of lobbying efforts on behalf of the industry. “At a time when the Federal Government has recognised tourism and hospitality as one of the country’s five major growth industries, how can we expect to be taken seriously if we don’t speak to government with a single voice?” one leading hotel industry executive said. Project “New Org” will be the umbrella for
Helloworld; Charissa Hanrahan, MTA Travel; Mary Mansour, AM World Travel; Martina Fairclough, Helloworld; Rachael Mann, BYOjet; Elyse Schomberg, World Travel Professionals NSW; Kevin Zhang, China Southern Airlines host; Luke Skarbek, Club Med host; Cassandra Briscoe-Hough, World Travel Professionals Brisbane.
three months of discussions and due diligence aiming to achieve a “merger of equals” between TAA and AAA. Catalysts for the talks include legislative changes and industrial relations streamlining to break down previous distinctions between hotels, motels and other forms of accommodation. A single body will leave the industry far better placed to tackle key issues, said AHA president Peter Burnett. The move is timely, with strong growth in international and domestic travel and a significant pipeline of new hotel developments, AAA head Gary Crockett added.
BUSINESS MONITOR INTERNET AGENCY MARKET SHARES Week ending 30/08/14 ranked by visits Rank Company Market share
Rank
10 STA Travel
12.9 12.5 9.8 7.9 5.9 4.8 2.2 1.5 1.4
2 1 3 4 5 6 7 9 10
2 1 3 4 5 6 7 9 10
1.4
8
8
* Not in top 10 Source: Experian Hitwise Australia – www.hitwise.com.au
4 travelBulletin SEPTEMBER 2014
AUSTRALIAN AIRPORTS International passenger through Australia’s major international airports* – June 2014
Passengers YE Jun 13
Passengers YE Jun 14
Auckland-Sydney 1,394,417 Singapore-Sydney 1,336,560 Singapore-Melbourne 1,074,034 Singapore-Perth 997,523 Auckland-Melbourne 962,217 Hong Kong-Sydney 922,156 Kuala Lumpur – Melb 650,356 Los Angeles-Sydney 888,861 Auckland-Brisbane 846,891 Denpasar – Perth 850,441 Top 10 city pairs 9,923,456 Other city pairs 20,386,442 ALL CITY PAIRS 30,309,898
1,463,632 1,376,639 1,125,247 1,052,791 1,012,714 945,599 899,637 895,831 890,790 832,088 10,494,968 21,882,127 32,377,095
Rank
W/E 30/08/14 W/E 02/08/14 W/E 02/08/14 1 Wotif 2 Webjet 3 Expedia 4 Flight Centre 5 Skyscanner 6 Lastminute.com.au 7 Au.edreams.com 8 BYOjet 9 FareCompare
City pair
INTERNATIONAL AIR Top 10 city pairs (at June 2014)
Source: BITRE
% of % change total 13/14 4.5 4.3 3.5 3.3 3.1 2.9 2.8 2.8 2.8 2.6 32.4 67.6 100.0
+5.0 +3.0 +4.8 +5.5 +5.2 +2.5 +38.3 +0.8 +5.2 -2.2 +5.8 +7.3 +6.8
Airport
Passengers YE Jun 13 Sydney 12,617,552 Melbourne 6,987,506 Brisbane 4,522,979 Perth 3,741,600 Adelaide 709,469 Gold Coast 882,536 Cairns 517,739 Darwin 313,032 Norfolk Island 10,932 Sunshine Coast 6,553 All Airports* 30,309,898
Passengers % of % change YE Jun 14 total 14/13 13,238,077 40.9 +4.9 7,664,820 23.7 +9.7 4,807,841 14.8 +6.3 4,056,341 12.5 +8.4 906,523 2.8 +27.8 875,310 2.7 -0.8 469,584 1.5 -9.3 338,826 1.0 +8.2 11,747 0.0 +7.5 8,026 0.0 +22.5 32,377,095 100.0 +6.8
* Total passenger numbers also include Townsville (scheduled services ceased October 2011) and Sunshine Coast (scheduled services from July 2013-Sept 2012, June 2013-Oct 2013 and June 2014). Source: BITRE
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ISSUES & TRENDS
AFTA VIEW Jayson Westbury, chief executive AFTA
Agents have embraced ATAS I AM really delighted to have been asked to continue to provide a monthly column as a contribution to the new travelBulletin, having been a part of the previous version of this publication for the past six years. It is a good thing for the travel industry that travelBulletin will continue to provide a balanced in-depth look at the issues that are in and around the travel industry. Congratulations to all involved in ensuring that the wonderful work of travelBulletin will continue. So, as the industry now reaches the end of the second month of the new regulatory environment for travel agents, I am very pleased to say that ATAS is going very well. We are approaching the 2000th accredited location across the country and continue to have robust and constant applications before us. The team has done an awesome job to get the applications processed in a timely fashion and we do thank the industry for their support and willingness to work with us during this change. Importantly, at the end of August, Consumer Affairs departments across the country will commence a media blitz to inform consumers of the change from a licensed travel agent to an accredited travel agent. Their message will be focused on the Australian Consumer Law and provide other messages to consumers to look out for when booking travel. Furthermore, it is very good news that the mainstream campaign will include a call to action for ATAS accredited agents – something that consumers will be informed by government to look out for. The new campaign centres around the slogan “pack a piece of mind” and will be funded by TCF reserves. The spread of the campaign is significant and across all areas of Australia which will touch as many parts of the community as possible. This is exactly what we were hoping for. To underpin this, the fact that ATAS will be included as a part of the messaging is very important. Educating consumers to fully understand the importance of industry-led professional standards in a de-regulated environment provides a level of comfort for them about who they are dealing with and why. ATAS accredited agents will progressively become the standard for the industry and it is very pleasing to see how quickly travel agents and suppliers are embracing the new arrangements. I am sure that as this campaign rolls out, the continued plans by ATAS to market the scheme will greatly support those travel agents who have joined the scheme. They will become part of the future story being told across Australia that an ATAS accredited travel agent is what the consumers needs when booking travel. So remember “pack a piece of mind” and become ATAS accredited today.
The new campaign centres around the slogan pack a piece of mind
‘
6 travelBulletin SEPTEMBER 2014
’
ACCC PROBES ONLINE HOTEL MARKET THE yawning gap between the commissions garnered by Australia’s leading online retailer of hotel rooms, Wotif, and those earned globally by multi-national giant, Expedia, is now under scrutiny by Australia’s consumer watchdog. The Australian Competition and Consumer Commission (ACCC) is concerned that a proposed Expedia takeover of Wotif could lead to Australians paying more for hotel accommodation. Australia has a singular online accommodation market because of the pioneering efforts of Wotif founders Graeme Wood and Andrew Brice. By the time Expedia and other global giants got serious about the Australian market Wotif had secured a dominant position. While the global companies have made inroads in recent years – aided by marketing campaigns of ferocious intensity – Wotif continues to hold a leadership position. A senior hotel industry insider recalls Wood – “an IT professional with the air of a research scientist mixing with hotel marketing types” – negotiating the company’s first deals. A key feature of those negotiations, according to this source, was that Wood committed Wotif to continuing with a commission rate of 10%. On the other hand, Expedia and others of its ilk typically extract global commissions of 18-22% depending on volume and other factors, he said. About 18 months ago, with its margins under pressure and attempts at broadening its presence into Asia lacking initial success, Wotif negotiated with Australian hotels for a commission increase to 11%, travelBulletin understands. That is still well below what Expedia demands – and gets – in global negotiations with hotel chains. Hotel aggregators have graduated from being handy outlets for hotels to unload distressed stock, and now wield considerable power in rate negotiations with hoteliers. Hotels have done what they can to direct traffic to their own websites with loyalty schemes and pledges that clients will secure the best rates by booking direct. But they are no match for the aggregators’ sites with grids displaying rates available from a range of competing properties. So the ACCC is wary about giving the green light to an Expedia takeover of Wotif. “Commission rates charged by Expedia and Booking.com in Australia are lower than the rates charged by those companies in other parts of the world. The presence of Wotif may be a contributing factor to this difference,” said ACCC chairman Rod Sims. He made the comment as the ACCC released a Statement of Issues (SoI) from its review of the takeover proposal. He pointed out that the proposed acquisition involves two of the three largest online travel agents (OTAs) in Australia. The other is Priceline (Booking.com and Agoda). “Market inquiries have indicated that Wotif is a major source of bookings for Australian accommodation providers and charges a lower commission rate than Expedia,” Sims said. “Market participants have expressed concern that the removal of Wotif as an independent competitor will allow Expedia to increase its commission rate.”
ISSUES & TRENDS
QANTAS BACK POCKETS HIT By Louise Wallace QANTAS executives have seen their incomes dive over the past year as the airline’s financial woes continue. Chief executive Alan Joyce took home $2m for the 2013 financial year after foregoing five per cent of his base salary. Overall, his pay package was 40% lower than last year’s $3.3m salary and 68% lower than his ‘at target’ potential of $6.4m. While $2m seems a far cry from the $6.4m figure, his statutory income totaled $4m including share-based payments. Last year, however, that figure stood at $5.1m. The trend has also trickled right down the list of Qantas executives. All of the airline’s senior and middle management were subject to a pay freeze and no bonuses were paid. Chief financial officer Gareth Evans took home $1.05m compared to $1.42m the previous year, and chief executive group loyalty Lesley Grant received $798,000 on last year’s $1.1m. The same goes for chief executive Qantas International Simon Hickey who took a $523,000 pay cut – banking $948,000 this year – and CEO Jetstar Jayne Hrdlicka who
received $1.04m compared to $1.36m the previous year. Chief executive Qantas Domestic Lyell Strambi also who took home $353,000 less with $1.07m this year. Statutory pay packages differed slightly for all executives, taking into account the treatment of share-based payments. However, the trend remained the same. Evans’ statutory income dipped from $2.1m to $1.64m this year, Grant saw a $200,000 reduction to $1.06m and Hickey’s stattory pay dropped from $1.92m to $1.45m. Hrdlicka, meanwhile, went from $1.72m to $1.54m and Strambi’s statutuory income dropped from $2m to $1.69m. Outlined in the 2014 Qantas Annual Report, the airline announced it was changing the ‘pay mix’ for executives in the year ahead, moving away from annual bonuses in favour of longterm incentives as it looks to wipe $2bn from its bottom line over the next three years. “This is a one-off change that aligns the entire management team with the immediate priorities of the transformation agenda,” the 132-page report said. The move comes just weeks after Qantas announced a $2.8bn statutory loss after tax
– a figure that the airline has described as “confronting” and “unsatisfactory”. The airline is forging ahead with an aggressive restructure with the hope of returning operations to the black in the first half of next year. It’s still too early to gauge whether the airline’s restructure is in fact delivering results, but investors seem optimistic, with Qantas shares closing seven per cent higher after Joyce announced the figures were “better than expected”. Investors will have to hold out until Qantas delivers its half year results to measure the success. In the meantime, the airline will continue its structure shake-up which includes shaving further redundancies from its books.
ISSUES & TRENDS
VTO BUDGET CUTS IMPACT ARRIVALS By Guy Dundas THE Government of Vanuatu must surely be ruing a decision to slash the budget for the country’s marketing arm, with visitor numbers from Australia levelling off after months of ongoing growth. About 12 months ago, the Vanuatu Tourism Office (VTO) was told by the country’s government to tighten its belt and trim its brand awareness. The theory, according to Vanuatu Tourism Office’s general manager Linda Kalpoi, was that the government felt Vanuatu had established a sound reputation and awareness in the marketplace, and cutting funds wouldn’t hurt tourism. At the Tok Tok Vanuatu 2014 tourism exchange held in Port Vila last month, Tourism Minister Ham Lini Vanuaroroa pledged support for the trade, announcing he would seek to have VTO’s budget re-energised. “This year tourism arrivals by air seem to have plateaued and one contributing factor is the low level of investment in marketing of the destination. Therefore, I as the Deputy Prime Minister and Minister for Tourism, will do my very best to seek an increase to the VTO 2015
Vanuatu Tourism Office at the Tok Tok Vanuatu 2014 tourism exchange in Port Vila last month.
budget,” he told delegates at the official opening of the tradeshow. Questioned as to how much the budget would be increased, Vanuaroroa would not specify an exact figure. Kalpoli told travelBulletin it was important the government had recognised the impact of tourism funding. “We are very hopeful and we’ve heard a lot of talk from the government about increasing the budget of destination
WHY SMALL IS BETTER: REASON #3
marketing, but we are yet to see it eventuate,” she said. “I think one of the key factors in the downturn, as mentioned by Deputy Prime Minister Vanuaroroa, is we had a reduced budget last year, so we pulled back a lot of our advertising campaigns that we should have been pushing.” She confirmed VTO’s budget had been wound back twenty percent. “With that decision, it has limited our level
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ISSUES & TRENDS
Air Vanuatu evolution unfolds A NEW 70-seater ATR turboprop and an interline partnership with Jetstar starting later this month mark a period of evolution for Vanuatu’s national carrier, Air Vanuatu. General manager for Australia & New Zealand, Malcolm Pryor talked travelBulletin through Air Vanuatu’s latest developments and in-market initiatives for the trade at Tok Tok Vanuatu travel exhibition held in Port Vila late last month. The latest addition to Air Vanuatu’s fleet will begin commercial services this month. The ATR72-500 will be the carrier’s second unit and has an additional two seats compared to Air Vanuatu’s five-year old workhorse. According to Pryor, the extra ATR is a big win for the airline, due to its operational efficiencies, and customers. Used primarily on inter-island services, the second ATR72 will enable tweaks to schedules. “We can better cater to meet the arrivals from international services and also avoid changes in gauge, where a customer comes out on an ATR but then on the return leg, because of scheduling, are on a smaller aircraft and suddenly baggage may not be accommodated – this new turboprop gets rid of those concerns,” Pryor explained. “We are in a period of modest growth,” he added. Expansion of Air Vanuatu’s international aircraft fleet from its one Boeing 737-800 is not on the table, “but it’s not impossible to rule out. We are certainly
of awareness within the markets,” she said. Vanuatu has faced stiff competition for the tourist dollar from other South Pacific islands, Bali and Hawaii. “Hawaii is very aggressive out there, and you’ve got Fiji coming back very strong, as well as the Cook Islands and Samoa. The competition is quite tough and once you are not there [in the marketing space], interest drops off. Well, we’ve learned our lesson,” the VTO head commented. Kalpoi confirmed VTO was seeking a 40% increase to its marketing budget for 2015. While that figure seems steep, in Kalpoi’s eyes it’s only a 20% rise on the organisation’s 2013 budget. “It’s a significant ask but we know that usually they don’t give it to us. So if they give us 20 or 30%, great. But if we ask for 20%, we may only end up with 10%,” she said. Another initiative that is set to be presented to the Vanuatu Government next month is a
getting good utilisation out of the 737 and it is still performing well.” Pryor said Air Vanuatu was “reasonably happy” with its performance over the past year: “We’ve seen growth on some routes, but not all of them.”
ʻ
We can better cater to meet the arrivals from international services
ʼ
The Sydney route has performed on par with expectations, and its weekly Melbourne nonstop service for the Victorian market remains “very important”. Sales from online travel agents – or “e-tailers” as Pryor referred to them – have grown substantially but not to the detriment of bricks-and-mortar travel agencies. “They have added another dimension to the way we sell,” he said. Direct online sales have also grown, with a refreshed and more interactive website generating new interest and bookings. A new interline partnership with Jetstar in Australia opens new gateways where passengers can purchase through-fares on the one ticket. “We will be able to offer more capacity and more fares from other Australian originating points – the catchment area that Jetstar services,” he said.
proposal to merge the country’s marketing arm, VTO, and the Department of Tourism – the organisation responsible for developing product. “The VTO is solely responsible for marketing the destination but often we find there is a mismatch of the message we bring out and the experience on ground, so we need to bring these bodies together under one roof so the product and marketing are talking and knowing what’s happening and what is the demand of the market. Currently we are separate entities, so the government now wants us to have that reviewed and there is a possibility of a merge.” The strategy would see the Department of Tourism remain in charge of policies, training and standards and the rest of the product would come under the marketing arm (VTO). Should a merger occur, it would not take place until 2015 at the earliest.
travelBulletin SEPTEMBER 2014 9
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ISSUES & TRENDS
TRAVELMANAGERS UNVEILS NEW BRAND, CLIENT CHARTER AND FINANCIAL GUARANTEE TRAVELMANAGERS has unveiled a new brand image as a prelude to a major consumer marketing campaign for its network of personal travel managers (PTMs). PTMs attending the home-based travel agency group’s conference in Singapore last month were told the campaign will be underpinned by a new client service charter. “We believe it will be a first for the travel industry”, said TravelManagers executive general manager Michael Gazal. An important element of the campaign, set to launch in January 2015, will be an insurance-backed financial guarantee offered to TravelManagers’ clients in the newly deregulated agency environment. The Singapore conference delegates received a sneak preview of a new logo for the group with the tag line “As Individual As You Are”. It will spearhead consumer branding of the more than 440 TravelManagers PTMs across Australia’s regions and metropolitan centres. Gazal said development of the brand has taken nine months with copious involvement from the company’s National Partnership Office staff and management, PTMs around Australia and even specially selected clients. Ed Elias from branding agency, Principals, steered the project, gathering feedback from all parties. Tellingly, Elias said his surveys identified that the brand lacked distinction in the market and was waiting for somebody to “take a stance and lead it”.
Internally, the brand review found TravelManagers’ community spirit was strong, but there was a desire for the company to be better known publicly. The TravelManagers community knew it had to maintain its individuality and personable spirit, aiming to grow but ensuring it did so while not sacrificing quality. The next step will be the formal introduction of the new brand to PTMs at state meetings, scheduled for November. The image will appear on all company paraphernalia including business cards and documents and will also be available as a car decal for PTMs to apply to their vehicles if they choose. A new consumer website is also being built from scratch to accompany the brand, along with a smartphone app enabling clients to access useful information and contact their PTM if required. Meanwhile the company is laying the foundations for a new service culture which, said Gazal, will build on existing high standards. Underpinned by the new client service charter it will aim to position TravelManagers PTMs as offering clients a “Premium Economy” experience. Gazal describes this as “a broad offering that is focused on quality and value for money and delivering to a level that meets each client’s budget”. ■ TravelManagers chairman Barry Mayo said the company has worked with insurance broker, Gow Gates, to develop Travel Agent Client Trust Account Fidelity Insurance (TACTAFI) to protect client funds. It is a separate product to the Travel Agent Intermediary Failure Insurance (TAIFI) available to ATAS accredited agents. “TACTAFI offers protection for TravelManagers’ client trust account in the event of misappropriation of funds by fraud or theft,” Mayo told travelBulletin. “This includes client documentation explaining the cover TACTAFI provides and how to call on this cover in the unlikely event a client should ever be required to do so. “We are not aware of any other travel intermediary providing client personal documentation guaranteeing this surety of client funds.” In the lead-up to agency deregulation and the formulation of ATAS, Mayo was a high-profile advocate of making Gow Gates’ TAIFI mandatory across the industry. However, he has now opted to adopt TACTAFI instead. Mayo has not ruled out TravelManagers becoming part of the ATAS accreditation scheme.
PTMs learning all about Trafalgar’s Europe offerings during a conference workshop session.
10 travelBulletin SEPTEMBER 2014
ISSUES & TRENDS
GROSS REVENUE BOOM FOR TRAVELMANAGERS TRAVELMANAGERS gross sales were up more than 13% in the seven months to July compared to the same period last year, according to the home-based travel agency group’s executive general manager Michael Gazal. Talking about the group’s growth, he told travelBulletin: “We now have more than 440 personal travel managers (PTMs) in all Australian states and territories with strong coverage in regional Australia as well the major metropolitan areas. “TravelManagers enjoys strong supplier partner relationships evidenced by exclusive TravelManagers famils dedicated solely to the company’s PTMs. These are in addition to invitations for PTMs to participate in general industry famils. “Many partner suppliers across a broad range of travel categories offer sales incentives to the PTM network. “TravelManagers has an extensive program of training activities which are regularly conducted throughout the country and via weekly webinars. These activities are supported by two dedicated training personnel.” Gazal also pointed out that TravelManagers PTM Ric Pattaro was named “Best Travel Consultant – Corporate” at this year’s National Travel Industry Awards – “the first time a winner came from the homebased consulting segment”. To be accurate, home-based agency Wow Travel, accredited in its own right and not a member of any home-based group, has previously been an NTIA winner. However, Pattaro is the first home-based consultant to win an individual award and the first affiliated to a home-based group. His award is undoubtedly a further indication of the growing strength of this sector.
PTMs finding time for conference networking. From left: Chris Cogan, Andrea Turner, Lisa Metzl, Michelle Thomas, Kim Mason, Angharad O’Malley and Karen Christie.
Lea Burford is congratulated by Grant Campbell on her award for New PTM of the year.
ISSUES & TRENDS
SMALLER GROUPS GET BIGGER BOOKINGS By Ian McMahon THE market for small group tours is growing just as group sizes are shrinking. Bunnik Tours last month announced a reduction of its maximum group size to 20 passengers, and managing director Dennis Bunnik told travelBulletin that the initiative has received a “fantastic” response from agents. He said bookings on the company’s new 2015 Europe program are “already well up” on the 2014 program at the equivalent stage of last year’s booking cycle. The only exception is the company’s Moscow to Prague package where bookings have been impacted by Ukraine hostilities. The 20 passenger limit applies to Bunnik Tours’ Europe, South America, Middle East, Asia and Africa tours. There are already smaller group sizes in place for some African tours (maximum 12 passengers) and Indo-China (maximum 18 passengers). “Until now groups this small have been limited to adventure travellers and those taking short regional breaks,” claimed Bunnik. With a maximum 20 passengers on full size
All set to promote the new small group size … Bunnik BDM for NSW and ACT Margaret Sibraa with national sales manager Paul Cook at the wholesaler’s national sales conference last month.
coaches, Bunnik said clients will experience “the great feeling airline passengers have when they find the seat next to them is free on a flight.” He claimed group sizes are the Europe coach tour industry’s “guilty little secret”. Major coach tour companies’ maximum loads range from 30 to 51 passengers, while Bunnik Tours
has until now operated tours with up to 26 passengers. He lamented the lack of an industry standard for small group tours, pointing to advertising of “small intimate groups” of 40 passengers. “That’s just taking the piss,” he said. Bunnik Tours coincided the announcement of smaller groups with the release of its 2015 Europe program comprising 15 tours including four new Cruise & Tour p packages in conjunction with Celebrity C Cruises and Holland America Line. A Also new to the line-up are tours of S Southern Italy, Sicily and Malta, and E Eastern Europe. The increased demand for Europe ttours is part of an upsurge in passengger numbers that, according to Bunnik, has more than made up for the drastic downturn in the fortunes of Egypt, previously the dominant destination for the wholesaler. “Prior to the revolution, Egypt accounted for 53% of the passengers we carried,” he said. “It’s now down to five per cent but we are carrying more passengers than ever thanks to growth in our Europe, South America, Africa and Asia programs.”
ISSUES & TRENDS
NO SHUFFLE IN SIGHT FOR TOPDECK FLIGHT Centre’s acquisition of 90% of Topdeck Tours is purely an investment which will have no impact on the day-to-day operations – or the company’s relationships with other travel retailers, according to the company’s managing director James Nathan. Nathan retains the remaining 10% of the company, while Flight Centre has purchased the stakes formerly held by the other partners in the venture – a consortium of the original Flight Centre founders who had a 20% stake, and APT which held the rest. Flight Centre has a similar hands-off investment in the Back-Roads Touring Co, which is also held 33% by Nathan. “Like Back-Roads Touring, Topdeck Travel will continue to operate as an independent entity based out of headquarters in Brisbane and Chiswick, London,” he told travelBulletin. Nathan said the acquisition by Flight Centre came on the back of an “incredibly strong European summer season,” with Topdeck recording growth of more than 30%. “[The] announcement is a natural platform to continue building for the ongoing success of the business,” he added. He told travelBulletin that he had spoken with other travel groups about the Flight Centre acquisition and they were very comfortable with the move. “In fact the fastest growing parts of our business in Australia are coming out of Helloworld and Magellan Travel Group,” he said.
Nathan is pictured left with Sarah Clark, Topdeck general manager for Asia Pacific and the Americas, and Ben Ittensohn, director of sales Asia Pacific.
Flight Centre chief operating officer, Melanie Waters-Ryan said the company was “investing in an iconic and profitable business that we know well”. “This investment gives us a new revenue stream, thereby enhancing our diversity, and creates opportunities to develop differentiated products for customers, in line with our strategy of manufacturing and launching unique product,” she said. The purchase values Topdeck at £21.84 million (A$38.7 million), with an additional contingent payment of up to £4.16 million
(A$7.3 million) depending on the business’s results for the year to 31 October 2014. Flight Centre’s involvement sees managing director Graham Turner complete a full circle, having founded Topdeck in 1973 and run it alongside Flight Centre until the mid-1980s when he sold his interest in the touring operation to focus on the travel agency business. Along with Flight Centre co-founders, he bought back into Topdeck in 2003. Before Flight Centre’s investment last month Turner held a four per cent interest in the business.
NORWEGIAN BUYS PRESTIGE FOR US$3 BILLION NORWEGIAN Cruise Line Holdings has inked a definitive agreement with Prestige Cruises International that will see three major cruise lines operate under one umbrella. The US$3.025 billion deal will see Norwegian acquire Prestige – the parent company of Regent Seven Seas Cruises and Oceania Cruises. Each brand will retain its distinct product offering while Norwegian will focus on cross-promotional efforts to improve its bottom line. Norwegian chief executive Kevin Sheehan described the acquisition as a “compelling deal” that would allow the company to expand its market presence, tap into new age markets and deliver an “industry-leading cruise operator with an unmatched growth trajectory”. The deal marks a historic move for Norwegian that will see the company go
14 travelBulletin SEPTEMBER 2014
ʻ
The deal also begs the question as to whether Norwegian could give the industry heavyweights a run for their money
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beyond the all-ages mould and step into intimate and luxurious experiences. Sheehan is confident it will deliver “immediate financial returns” led by increases in capacity and a broader offering for clients. But the deal also begs the question as to whether Norwegian could give the industry heavyweights a run for their money.
Carnival currently tops the podium, holding almost half of the world’s ocean cruise business with 10 brands. Caribbean takes out second place with six brands and 42 ships, while Norwegian has 21 ships across its three bands including Oceania’s five luxury ships and Regent’s three high end vessels. However, after 47 years in the business, expansions are on Norwegian’s agenda. The company recently took delivery of the 4000 passenger Norwegian Getaway – its most innovative ship to date. It also has four vessels on order at Meyer Werft for delivery over the next five years. Norwegian’s next move is anyone’s guess, but for now, it will focus on “retaining its brand positions” and “improving guest experiences”. The transaction is subject to regulatory approvals and conditions which are expected to be finalised by the end of the year.
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TRAVEL MANAGEMENT
WHAT IT TAKES TO BE A
WORKPLACE LEADER
By Judith O’Neil
I
F you ask yourself who you most admire as leaders, you will probably find they come from a broad cross section of community, business, politics, sciences and organisations - local, Australian and worldwide. But why do you admire them? According to Meghan M. Biro – author and Forbes.com contributor – chances are that your admiration is based on more than accomplishments and extends to an emotional level. I have to say, I agree with her. Emotional intelligence is integral to great leadership. Great leaders understand empathy and have the ability to read people’s needs and desires. This allows them to speak to these needs and, when possible, to fulfill them. Biro goes on to say that this ability to reach people in a way that transcends the intellectual and rational is the mark of a great leader. They inspire us. And when we are inspired, we tap into our best selves and deliver amazing work. In the real world of work and employee engagement, not everyone has the natural talent of leadership. However, Biro believes - and I agree - that it can be acquired, honed and perfected. When this happens either through an amazing mentor or business coach, your
16 travelBulletin SEPTEMBER 2014
chances of increasing loyalty, engagement and success increase exponentially. It requires a near-equal exchange of information about the business’s goals and challenges and a shared sense of the value of work. It’s a two-way street of respect and trust. Think about and adopt the following: ■ Honesty: Tell the truth. Every week, it seems, a so-called leader loses credibility because they were dishonest. If you have a reputation for honesty, people feel secure and it will be a lot easier to deliver bad news and face tough challenges. ■ Kindness and respect: Nice leaders finish first – ignorance and arrogance are leadership killers. Of course, there will be people who prove they don’t deserve respect, and they must be dealt with. But that job will be easier if you have a reputation for kindness, honesty and respect. ■ Partner with your people: Find out what your employee’s career goals are and then do everything possible to help them achieve success. Sometimes this will mean difficult changes, but remember the most important skill of a leader is to never surprise an employee with bad news. Have a development plan in place, and an improvement plan for those whose performance lags. ■ Collaboration: Communicating your company’s strategies, goals and challenges builds
buy-in and respect. The more you “partner” with your employees, the more they will deliver amazing results. ■ Be fair and open: This does not mean treat everyone equally – it means having transparent processes for managing and leading. Employees are more likely to respond positively to change when the process used to manage change is fair. ■ Model the behaviours you seek: Accept your responsibility as a leader and act with engagement, commitment and responsibility. Loyalty is built on relationships, shared understanding and trust. Engagement and commitment require loyalty, shared goals and fair treatment. Don’t take loyalty and engagement for granted – create a remarkable culture where there are possible and rewarding outcomes from the workplace and for the workplace.
Judith O’Neill is a management consultant, business and corporate coach. She is the principal of Aspirations Consulting and is a graduate of the Australian Institute of Company Directors. Judith can be contacted on telephone (02) 9904 3730 or email: jaoneill@aspirationsconsulting.com or visit www. aspirationsconsulting.com
COVER STORY
THE
MILLION DOLLAR CLUB What Australia’s travel bosses are paid
T
HE bosses of Australia’s major listed travel agencies have experienced fluctuating fortunes in 2013/14 – and the biggest rewards have not necessarily gone to those who achieved the best bottom line results. Helloworld, which reported an after tax loss in the millions and a big drop in turnover, still had two executives in the travelBulletin “Million Dollar Club” of travel agency executives with seven figure pay packets. This was because they received large performancerelated cash bonuses. By contrast, Webjet achieved record turnover and profits, but executives forfeited all cash bonuses and the company no longer has a Million Dollar Club member. Webjet chief executive John Guscic, who made it into the club last year, is paid a very similar base salary to Helloworld chief executive Elizabeth Gaines. But it was Gaines who picked up a bonus and Guscic who
dropped out of the Million Dollar Club. At Helloworld, after tax losses of $63.3 million in 2013/14 represented a 492% drop on the small $16.2 million profit the company made the previous year. Total transaction value was $4.9 billion, a 6% fall from the $5.2 billion of the previous 12 months. The company’s online market share plummeted following the decision to close Best Flights and there has been at least a 7% drop in retail locations since the December 2013 announcement of the Helloworld single brand strategy (and about 18% since the 2010 merger that formed the company now known as Helloworld). The company has also written down good will by $65.4 million and the value of brand names and trademarks by nearly $2 million. Nevertheless it is taking an optimistic view of the future, citing a 5% reduction in costs and an “adjusted EBITDAI” of $40.6 million – a figure calculated by ignoring the
THE MILLION DOLLAR CLUB Executive
2013/14 Renumeration
Chris Galanty (Flight Centre)
$1,848,413
Scott Blume (Wotif)
$1,655,574
Melanie Waters-Ryan (Flight Centre)
$1,493,342
Rob Gurney (Helloworld)
$1,203,308
Elizabeth Gaines (Helloworld)
$1,105,616
IN: Scott Blume (Wotif) OUT: John Guscic (Webjet), Rob Flint (Flight Centre) The highest paid executive of a listed Australian travel agency, Chris Galanty, is based in London.
$15-16 million spent on Helloworld implementation. It is foreshadowing improved profitability this financial year, which is presumably the justification for the bonuses that ensured both Gaines and her predecessor, Rob Gurney, took Continues over page
travelBulletin SEPTEMBER 2014 17
COVER STORY
Continues from previous page home seven figure pay packets in 2013/14 – $1.1 million for Gaines and $1.2 million for Gurney. Gaines’ total pay included a $400,000 cash bonus paid as a short term incentive and a $36,768 long term incentive share based payment. Gurney, who has remained on the payroll since he departed Helloworld in the wake of internal dissension over his management style, received a cash bonus of $284,750 and $79,500 in share based payments. Third best paid executive at Helloworld was Russell Carstensen who was actually the only key manager with a bulkier pay packet in 2013/14 – Gaines and Gurney earning less than in 2012/13. His total earnings of $857,980, just ahead of the $847,024 he accrued the previous year, included a $326,600 bonus, no doubt reflecting that he heads Air Tickets, probably the company’s most successful division. Additionally, he was handed the “poisoned chalice” of the perennially loss-making QBT and turned it around to profitability. Interestingly Helloworld’s annual report has cut back on the disclosure of executive salaries, with Andrea Slark and Mike Thompson no longer qualifying for the list of key management personnel (KMPs) whose remuneration is listed. Head of wholesale Peter Egglestone earned $373,392 – scaled back considerably from the rewards accumulated by former group general manager wholesale Simon Bernardi who in 2011/12 made more from sign-on and termination payments ($369,079) than he was paid for doing his job ($326,087). Webjet directors have been far less lavish with shareholder funds. Guscic oversaw a dramatic improvement in the online travel agency’s fortunes in 2013/14 – total transaction value was up 32% to just under $99 million while after tax profit soared by 33% to more than $19 million. The loss-making Zuji, acquired by Webjet in 2012/13, was transformed into a profitable enterprise; the company made further inroads into accommodation sales; and Guscic could continue to make the uncontested claim that Webjet is the only full service OTA in the world to make money out of air ticket sales. But despite achieving these results, Guscic and his chief operating officer Shelley Beasley both missed out on cash bonuses because they failed to achieve the budget set by the board – albeit Guscic did receive
18 travelBulletin SEPTEMBER 2014
performance-related share-based payments of $283,127. Last financial year, Guscic entered the travelBulletin Million Dollar Club when a $340,000 bonus took his total pay to $1.15 million. But this year, without a bonus, he dropped out of the club. Beasley, who received a $115,750 bonus in 2012/13, also took home a much lighter pay packet this year as a result of missing out on a bonus. She earned $381,466 compared to $477,293 in the previous 12 months. Replacing Guscic in the Million Dollar Club is Scott Blume, the boss of rival OTA, Wotif, now in the process of negotiating a deal that would see it become part of Expedia. The two have roughly equivalent base salaries but Blume’s earnings soared to $1.65 million thanks to a $100,000 cash bonus and $787,133 worth of options/performance rights. This took him to second place on the Million Dollar Club table, ahead of last year’s leader, Flight Centre’s chief operating officer and executive general manager Australia Melanie Waters-Ryan. Waters-Ryan was just one of a number of Flight centre executives who were paid considerably less in 2013/14. The company’s after tax profit of $206,918 was 16% down on the previous 12 months although the company said “underlying profit” before tax was up 9.7% to $376.5 million (after taking into account such items as the one-off $11 million fine imposed by the ACCC and a $61.3 million non-cash write down of good will and brands). Collectively Flight Centre’s six KMPs earned $1.05 million less than last financial year. Waters-Ryan dropped a cool $741,680, earning $1.5 million compared to $2.25 million in the previous 12 months. However the company’s managing director UK and South Africa Chris Galanty scored a pay rise from $1.6 million last financial year to $1.9 million in 2013/14 and moved to the top of the Million Dollar Club. The executive team at Corporate Travel Management (CTM) steered the company to 56% growth in total transaction value ($1.583 billion) in 2013/14 and substantially increased profits of $15.8 million (up from $11.3 million in 2012/13). Chief executive for Australia and New Zealand Laura Ruffles saw her rewards increase to a still modest $486,159 ($406,979 in 2012/13) thanks to a 6.4% increase in base pay and bigger hikes in
WEBJET Base Salary
Incentives and Other Benefits*
Total
John Guscic
$676,084
$308, 127 *
$984,211
Shelley Beasley
$370,355
$11,111**
$477,293
$43,292
$4,005**
$47,297
$223,613
$20,684**
$244,297
Robert Turner*** Michael Sheehy***
* Performance related share-based payment and superannuation – no cash bonus paid ** Superannuation – no cash bonus paid *** Robert Turner resigned as chief financial officer in August 2013 and was replaced by Michael Sheehy in November
HELLOWORLD Base Salary
Incentives and Other Benefits*
Total
Elizabeth Gaines
$646,404
$459,212
$1,105,616
Russell Carstensen
$516,740
$341,240
$857,980
Peter Egglestone
$287,474
$85,918
$373,392
Greg Leighton
$322,989
$101,698
$424.687
Rob Gurney
$821,283
$382,025
$1,203,308
*Includes bonuses, share based payments, long service leave and superannuation
COVER STORY
performance-related payments – cash bonus up from $90,000 to $100,000 and share appreciation rights of $24,338 compared to $9,317 in 2012/13. Company founder and managing director Jamie Pherous continued to take only $300,000 in base pay out of the company. It was only because of annual leave and superannuation accumulations that his overall remuneration rose to $362,216 ($340,375 in 2012/13). Of course, Pherous, with 23 million CTM shares, also benefits from the fully franked dividends of 0.12 cents paid by the company for 2013/14 – a handy income of $2.76 million. Claire Gray, with more than five million shares, reaped a dividend income of $600,000. With CTM shares hovering around the $7.50 mark in early September, Pherous’ paper wealth stood at an impressive $172.5 million. This was, however, dwarfed by fellow Queenslander, Graham (Skroo) Turner, whose 15.2 million Flight Centre shares accrued dividends of $1.52 in 2013/14 yielding a fully franked income of $22.8 million. Trading at around $47.60 in early September they gave Turner a paper wealth of more than $723 million.
CORPORATE TRAVEL MANAGEMENT Base Salary Jamie Pherous
Total
$62,216
$362,216
$293,269
$192,890
$486,159
Steve Fleming
$260,000
$101,510
$361,510
Larry Lo**
$165.748
$5,349
$171,097
$95,572
$95,572
Claire Gray Laura Ruffles
$300,000
Incentives and Other Benefits*
$94,747
Romeo Cuter**
$94,747
* Includes short term incentives, leave, non-monetary benefits, superannuation, long service leave and share appreciation rights ** Larry Lo was appointed chief executive Asia on January 29, 2014 *** Romeo Cuter was appointed chief executive North America on April 2, 2014
FLIGHT CENTRE Base Salary
Incentives and Other Benefits*
Total
Graham Turner
$282,225
$374,848
Rob Flint
$207,225
$611.098
$675,073 $818,323
Melanie Waters-Ryan
$232,225
$1,261,117
$1,493,342
Andrew Flannery
$282,225
$346,222
$646,447
Chris Galanty
$265,440
$1,582,973
$1,848,413
Dean Smith
$244,148
$677,636
$921,784
* Includes short term incentives, BOS (Business Ownership Scheme) benefits, share-based payments, superannuation and long service leave
WOTIF Base Salary
Incentives and Other Benefits*
Total
Scott Blume
$750,693
$904,881
$1,655,574
Gordon Timm
$289,288
$26,698
$315,986
David Barnes
$330,584
$79,251
$409,835
Janet Sutherland
$278,359
$34,671
$313,030
Sean Simmons
$246,396
$34,940
$281,336
Helen Demetriou
$223,478
$44,187
$267,665
Olivier Dombey
$252,235
$252,235
Daniel Finch
$127,080
$122,621 **
* Includes cash bonus, superannuation, long service leave and share options/performance rights ** Lower than base salary because of options write back
TTF VIEW Trent Zimmerman, acting chief executive Tourism and Transport Forum
Attracting another 200,000 New Zealanders NEW Zealand is Australia’s number one source market for international visitors, with 1.2 million New Zealanders visiting Australia last year. And while that is an impressive figure, arrivals from New Zealand have been relatively flat for a number of years, rising less than 10% since 2005, and holiday arrivals have in fact declined. We believe there’s significant room for improvement. To kick-start that growth, TTF has released Bringing Our Neighbour Closer, a new report which proposes reforms that could boost the number of visits from New Zealand by around 200,000 a year, with increased expenditure in Australia of $370 million. A similar number of additional visits by Asian tourists could be achieved through offering a common, affordable visa across both countries. The report looks at four key factors restricting growth. The first is travel times, which are too long thanks to international check-in and biosecurity requirements. With 92% of arrivals from New Zealand coming through Sydney, Melbourne, Brisbane and Gold Coast Airports, improving passenger facilitation at these airports should be the priority. We also believe we can induce demand by cutting total travel times to under five hours, which studies shows is the psychological barrier to short-break travel. The second factor is cost – and reducing the tax burden is central to this reform. Air travel between our two countries is heavily taxed – albeit only in one direction. The Australian departure tax, the Passenger Movement Charge, can account for more than one-fifth of the total price for a return ticket. In Australia’s most price-sensitive inbound tourism market, this unnecessary tax has real impact and should be reduced or removed. Bringing Our Neighbour Closer recommends cutting the PMC from $55 to $25 for trans-Tasman flights, reducing the burden on a family of four from New Zealand by more than NZ$130. The third reform is to open up new destinations along our east coast to direct trans-Tasman flights, especially during winter, expanding our product offering, particularly to the short-break segment. This would address the issue of destination fatigue and also drive dispersal by reducing total travel time to regional destinations. We would like to see a streamlined model of passenger processing to allow direct flights from New Zealand to airports in Newcastle, Canberra, Hobart, the Whitsundays and Avalon, as well as regional destinations in New South Wales and Queensland. The final recommendation is to encourage greater visitation to both Australia and New Zealand by Asian tourists through a reduced-cost, common visa. With the centenary of the Gallipoli landing on April 25 next year, these reforms would be an appropriate acknowledgement of the close relationship between our two countries.
travelBulletin SEPTEMBER 2014 19
TECHNOLOGY
‘WE’RE AHEAD OF THE NDC CURVE’ SAYS TRAVELPORT
Damian Hickey, left, and Ian Heywood … making it easier for agents and airlines, including LCCs, to merchandise fares and ancillaries.
By Bruce Piper
T
RAVELPORT’S Travel Merchandising Platform (TMP) already incorporates many elements of IATA’s proposed New Distribution Capability (NDC), according to the company’s vice president global distribution and sales Damian Hickey. While Travelport is very much in favour of standards, the company is moving much faster than dictated by IATA’s current timeline which projects a pilot NDC in place by 2016, Hickey told travelBulletin during the recent CAPA Centre for Aviation conference in Sydney. “Standards make life easier, but we have to go beyond,” he said. Hickey said the development of NDC is a manifestation of the desire from the airline community to have flexibility to merchandise various add-on products via indirect channels. The initial phase of discussions about NDC had created confusion, fear, uncertainty and doubt among the travel community, but that initial scepticism has now declined. “We share the same vision with NDC, redefining the way that airlines can merchandise,” he said, with Travelport already out there signing up customers to its Rich Content and 20 travelBulletin SEPTEMBER 2014
Branding offering. The development of the TMP has focused on what’s currently missing from GDSs – what current systems do not do and what is needed moving forward, to make it easier for travel agents to sell airline ancillaries and add-ons. The platform gives airlines the flexibility to connect with the GDS via an XML API rather than simply referring to fares filed with ATPCO. This also means the system can more easily link to low cost carriers with AirAsia, Tigerair, Ryanair and Easyjet all currently
feeding content and ancillaries into the platform, Hickey added. Travelport head of global supplier strategy, Ian Heywood, said there’s a strong imperative for airlines to distribute ancillaries as widely as possible, with a recent study revealing that more than $US45 billion in the extras are transacted globally each year, offering a significant revenue stream. Some airlines which have connected to the platform already use a hybrid model – for example Delta Air Lines sells some of its “Economy Comfort” seating via XML while still continuing to file fare data with ATPCO. “We will do whatever we need to in order to get the content to the client,” Heywood said. The rich content and branding element of the system enables airlines to market and retail their products more effectively, building on the existing cryptic GDS environment with a graphical display which centralises all product information. Already 55 airlines have signed up for the system, with the rapid uptake indicating a strong unmet need. When a fare is selected from the GDS screen, full details appear along with other fare options and available add-ons. This enables travel consultants to provide full information to their clients as well as providing significant opportunities for companion sales or up-selling. Heywood said that airlines are expected to dramatically increase the number of ancillary options they offer. Ongoing development will see a fully dynamic approach to the system which could eventually see airlines able to “revenue manage down to individual seats on individual aircraft,” he said.
ON TRACK WITH LOCOMOTE TRAVELPORT believes its 49% investment in Melbourne-based IT firm Locomote has “the potential to redefine the travel management landscape”. Locomote already had a close relationship with Travelport, having developed a mobile platform which grabs data from Travelport’s Universal Profile and API to “empower corporations in the seamless management of their travel, authorisation and procurement processes”.
The system offers real-time access to lowcost and network carriers as well as airline ancillaries, car rental and hotel content. Third party applications – such as corporate booking tools and expense management systems – can be easily integrated within the same platform to simplify the traveller and approval workflow. Locomote’s platform is already used by organisations such as World Vision, Medibank and the ANZ Bank.
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TECHNOLOGY
WHY AGENTS ARE ‘KINGPINS’ IN THE SERKO MODEL DARRIN Grafton’s travel industry background ensured that he made travel agents the “kingpins” in developing the Serko business model. Prior to founding Darren Grafton the online booking company with business partner, Bob Shaw, Grafton worked for major New Zealand travel wholesale/retail conglomerate Gullivers where he was in the front line of developing systems for both leisure and corporate travel operations. In 2007, when Australia’s MFS (later to morph into Stella) took over Gullivers, Grafton and Shaw saw an opportunity to “acquire the assets” they needed and “build Serko from the ground up”. “I have always understood how that market (travel agents) works and built tools in which travel agents are pivotal,” he said. That philosophy has also shaped the way Serko markets its corporate online booking tools.
The Auckland-based company, which writes around 95% of its business in Australia, does not sell direct to corporates. It uses travel management companies (TMCs), including most of Australia’s major agencies, as re-sellers. “For us, the agent is kingpin,” said Grafton. “They re-sell, or license, the technology on our behalf.” A major step for the company earlier this year was its $NZ22 million float on the New Zealand Stock Exchange. An overwhelming response to the Initial Public Offering (IPO) saw it close 23 days early. Eventually the company will also list on the Australian Stock Exchange, although the timing of this move has yet to be confirmed. It’s been an exciting time, said Grafton. While the vagaries of Stock Exchange trading mean he is not necessarily happy with the current share price, “the important thing is we now have the money we need to continue developing Serko”. A key focus for development will be handheld devices. The company has recently released technology enabling travellers to change bookings and itineraries while on
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the move (travelBulletin, June). Grafton also sees a big future for Serko’s patented “tap and go” technology which, he says, will eliminate the need for corporate travellers to carry receipts. Grafton told travelBulletin: “We are putting technology into the palms of travellers’ hands so that agents are always benefiting from it, not being removed from the process.” Other key developments for Serko include the acquisition earlier this year of Sydneybased online expense management company, Incharge. The move recognises that travel makes up a third of the expense budget for corporations. Combining Incharge and Serko technology produces “a truly remarkable integrated travel and expense solution”, Grafton said. The new module gives travel administrators the ability to book an unlimited number of flights simultaneously, directly from their desktops. While initially aimed at the FIFO market, Grafton said it is exciting to see the many uses that TMCs are now finding for the technology as they adapt it to their own group booking requirements.
TAPPING INTO THE CHINA TRAVEL MARKET ABACUS and Amadeus have announced separate initiatives that position them to exploit the potential of the China travel market. Abacus, the specialist Asia Pacific GDS that is the parent company of Sabre Pacific, has achieved the milestone of becoming the first foreign GDS to issue air tickets using its technology, customised for China. “With a network of mainland travel agents in place, Abacus has secured a new channel for airlines to access this vast and expanding outbound market,” the company said in a statement. Flights from Beijing with Etihad Airways were chosen from among four initial carriers available for Abacus travel agents to book from China. The content and fares of many more foreign airlines will soon be added, according to the Abacus announcement. Meanwhile, Amadeus has integrated China’s UnionPay, said to be the world’s largest payment card scheme with over 4.3 billion cards in circulation, into the Amadeus Payment Platform “Amadeus travel providers, including airlines and online travel agencies worldwide can now offer China’s preferred card as an online payment option directly via the APP across over 140 countries where UnionPay is accepted,” the company said.
22 travelBulletin SEPTEMBER 2014 Check it out, email chris@tramada.com | www.tramada.com
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TECHNOLOGY
O’BRIEN: AGENTS DOOMED WITHOUT NEW TECH TRAVEL agents who think they can run sustainable businesses without investing in technology are doomed, warns Tramada chief executive Jo O’Brien. She cites a Boston Consulting Group study that found tech-savvy, and especially cloudsavvy, small and medium size businesses can increase revenue 15 percentage points faster than technology laggards. She also points to risks relating to outdated technology, warning agents that one reason they may struggle to excite new, younger people into joining the industry is the antiquated way in which many businesses operate. “Recent generations entering the workforce are looking for technology tools that allow them to move seamlessly from their personal lives to business lives without complex training courses that operate in classrooms and go for days,” she says. “They want their training to be available online, delivered in bite sized chunks and accessible whenever and wherever they want it to be. “They want their products to be intuitive, cloud based with ‘wiki’ like help and with online, trackable support. They will not ‘get’ sitting on a phone for 45 minutes waiting
for reservations or support teams to pick up a landline phone that ties them to a desk,” she says. O’Brien acknowledges that choosing the right technology can be difficult.
ʻ
Choosing modern technology with a commitment to staying up-to-date with future development and a track record in doing so offers a wide range of advantages
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“Choosing modern technology with a commitment to staying up-to-date with future development and a track record offers a wide range of advantages including greater security, better customer retention and happier, more productive employees.
“Tramada... has invested more than 150,000 hours to ensure our systems are leading edge, but we know that’s not enough,” she says. “We have a process of continuous development to ensure that we stay ahead of the curve.” O’Brien says travel customers also evaluate businesses based on the technology used. “They demand that their travel agents are smart, know destinations and where to find the right products, but they also want evidence that they are forward thinking and have access to smart, seamless technology that collates and delivers information by whatever mode that suits the traveller,” she says. “Recent changes to the Privacy Act mean travel agents have a responsibility to their customers to ensure they protect their data and that the technology providers to the travel agency also have appropriate data security measures in place. “This can only be achieved by using modern, best of breed technologies provided by reputable companies. All of this sounds onerous but it doesn’t have to be, technology must be an enabler and Tramada has been enabling travel agents to stay ahead of the curve.”
AMADEUS ANCILLARY PLATFORM INCORPORATES NDC AMADEUS has partnered with United Airlines to roll out a new ancillary services platform using NDC connectivity. Marking the first NDC-XML solution in the North American travel agency channel, the Ancillary Service Solution will see United Airlines merchandise its portfolio of products and services to customers. Amadeus subscribers in the US can now book United’s ancillary services at the initial booking phase, or after a ticket has been issued. The solution, which seamlessly integrates into the agent’s booking flow, is set to
raise the standards of distribution and “unlock value” for airlines and passengers. “We have high expectations that by combining technology and merchandising capabilities, the Amadeus solution will play a leadership role in the evolution of airline distribution,” IATA senior vice president financial and distribution services Aleks Popovich said. Meanwhile, Amadeus has entered a new partnership with Fiji Airways to increase access to the carrier’s fares. Under the deal, Amadeus agents will be able to search and book the full range of Fiji
Airways fares across all its sales channels. Fiji Airways managing director Stefan Pichler welcomed the deal as a boon for tourism that would put Fiji on the map. “We have to make sure that our growing network and fares are available everywhere around the globe for sale… and we’re confident this deal… will boost our worldwide sales,” he said. Amadeus currently holds almost 40% global market share of travel agency air bookings, and over 85% of Amadeus’ global bookings are made on airlines.
COMPETITION
Win a luxurious THAI escape
Travel Bulletin and Thai Airways competition
W
elcome to the new look travelBulletin, Australia’s most respected travel industry magazine. To celebrate our September launch edition, we have partnered with Thai Airways International, Sofitel Bangkok Sukhumvit and Sofitel Krabi Phokeethra to bring you the most exciting prize package of the year.
PACKAGE INCLUDES: ◆ Royal Silk Business Class travel on Thai Airways International to Bangkok and Krabi and return for 2, including Royal Orchid Spa and Lounge access at Suvarnabhumi Bangkok International Airport ◆ Two nights at Sofitel Bangkok Sukhumvit including breakfast ◆ Two nights at Sofitel Krabi Phokeethra including breakfast ◆ Private transfers courtesy of World Travel Service
Royal Silk Business Class – B777-300ER
To go in the draw to win this prize of a lifetime, all you have to do is get creative and submit your best idea for a campaign or initiative to promote travel to Thailand to comps@travelbulletin.com.au. The best idea wins – simple as that! Our hot tip is to think outside of the box, but we’ll leave the rest up to you. Entries open September 22 and close October 31, so get your thinking caps on. The lucky winner will be announced in the November issue, so stay in the loop on our Facebook page: https://www.facebook.com/etravelbulletin. Sofitel Bangkok Sukhumvit Terms and Conditions: No entries will be accepted after October 31. travelBulletin accepts no responsibility for entries that are not received. Thai Airways International reserves the right to cancel or amend competition terms and conditions without notice. All entrants must be a part of the Australian travel industry. Winners will be notified within 28 days of the closing date and must agree to use their name and image in any publicity material. Competition entry will be deemed as acceptance of these terms and conditions. For full Terms and Conditions please visit travelbulletin.com.au/competitions
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CRUISE REPORT
CRUISE UPDATE Brett Jardine, general manager CLIA Australasia
SILVERSEA SEEING STRONG GROWTH
A
USTRALIA is about to witness another record summer cruise season with more than 640 cruise ship visits scheduled for ports right around the country over the coming months. Thirty-six ships from CLIA member cruise lines will visit our shores between October 1, 2014 and April 30, 2015 and between them they will make a total of 642 calls to Australian ports. That’s a massive influx of tourism dollars which will be spread around the coast from Brisbane to Busselton and Melbourne to Margaret River. We will also get our first peek at three ships making their inaugural trip down under this summer. After kicking off the summer cruise season with its arrival in Sydney on September 22, Carnival Cruise Lines’ Carnival Legend will be a regular in Sydney’s Harbour offering a summer of cruising alongside sister ship Carnival Spirit. We’ll also see Ponant’s L’Austral in local waters for the first time after it arrives at Cape York on Christmas Eve, while MSC Orchestra will make its maiden Australian visits in 2015 after it cruises into Cairns on March 13. It’s not only the biggest cruise season in terms of numbers, it’s also the biggest for regional ports with ships making a variety of calls to more off-the-beaten-track parts of our coastline. Busselton, Eden, Esperance, Albany, Port Hedland and Geelong are among the regional towns who will be sharing in this summer’s mega wave of cruise tourism. Some will be welcoming a cruise ship for the first time with an impressive 38 maiden port visits occurring this summer – twice as many as last year. Sydney still remains the cruising gateway but with 18 ships making a total of 253 roundtrip cruises from ports around the country, the Harbour City won’t be the only one reaping the economic rewards of a turnaround call. The number of roundtrip itineraries on offer this summer is significantly more than the 202 we saw during the 2013/14 season, which means a significant spike in economic returns as well as a magnificent parade of ships sailing in and out of our ports. Because most of the 36 ships making calls this summer are visiting from the northern hemisphere, there will also be a parade of tens of thousands of international tourists marching onto our shores. Cruising generates economic benefits for Australia 12 months of the year but during this record peak season, we’ll see a huge flotilla of ships and all the wonderful flow-ons they bring with them. As cruise season comes to a crescendo in February, we’ll be celebrating with two of the biggest events on the cruise calendar happening over consecutive days at the end of the month – the Cruise3sixty Australasia conference and the 2014 Cruise Industry Awards. To make it easier for those travelling from interstate or overseas to attend, both events will be held at the revamped Star Event Centre, Sydney, on February 27 and 28. ■ For more information and to buy tickets visit www.cruising.org.au
26 travelBulletin SEPTEMBER 2014
Silversea president Europe, Africa, Middle East & Asia Pacific, Steve Odell, and general manager and director of sales and marketing Karen Christensen.
SILVERSEA Cruises turns 20 this year – but that’s not the only reason for celebration. Australia is now the upmarket brand’s third largest market, and Silversea president Europe, Africa, Middle East & Asia Pacific, Steve Odell expects us to move into second place (overtaking the UK) in the next 24 months or so. Silversea’s 20th birthday celebrations have rolled around the world, with events which have also launched its 2015 program in London, Monaco, Venice, Auckland, Melbourne, Sydney, Perth, Brisbane and Canberra. Speaking with travelBulletin last month, Odell said the company had its sights firmly set on Asia. But he also singled out Australia as a strong performer. “The business books early, it has the highest yield and Australians travel the longest,” he said, with Aussie passengers staying on board for an average of 16 days. Such is the importance of the local market that Silversea earlier this year debuted its Silver Discoverer in Australia. More than 60% of passengers have been Australians. Aussies have a big affinity to expedition cruising, with products such as Silversea’s Galapagos program seen as having strong potential.
PORTUSCALE CANCELS AUS PORTUSCALE Cruises has cancelled its first season in Australia less than five months before it was due to begin. The company’s 1961-built MV Funchal was scheduled to start cruising out of Geelong (Vic) and Newcastle (NSW) from Feb 2015, with ports of call including Portland, Eden, Kangaroo Island, Burnie, Hobart and Port Arthur. However, Jeannie Foster, country director of Portuscale’s Australian sales agent, Discover the World (DTW) earlier this month confirmed that the Southern Hemisphere collection has been “cancelled due to unforseen circumstances”. DTW has contacted clients to refund all deposits and offered a 25% discount of any Portuscale Cruises’ MV Funchal 2015 season booked from the Australia and New Zealand market before September 30, 2014.
CRUISE REPORT
QUANTUM LEAP FOR CRUISE INDUSTRY THE cruise industry is no stranger to competition and operators are constantly rolling out improvements to lure travellers on board and vie for the lion’s share of the market. But the benchmark has reached new heights with the unveiling of details of the Quantum of the Seas last month. Dubbed the “Smart Ship”, Royal Caribbean’s new Quantum class of ship takes cruising technology to the next level with robot bartenders, lightning-fast internet, 10-minute check in and luggage tracking on an app. Guests will also be able to stream video and download apps with internet speeds that match fast broadband connections on land. The 167,800 tonne ship will also be the first ship to feature its own sky-diving simulator, bumper cars, surf simulators and the first ever virtual balconies which use 80 inch LED screens to convey the “sights and sounds of the sea”. Revealing the ship plans in Germany last month, Royal Caribbean chief executive Richard Fain was quick to explain how RCCL was leading the charge with a wave of “industry firsts” never before seen at sea. He also remained confident Quantum of the Seas would be a game changer that would overcome the stereotypes of cruising,
spice up the vacation experience, and entice younger travellers on board. Considering that the internet didn’t appear on cruise ships until 1999 and mobile phone service only made its way on board in 2002, technology is moving fast at sea. There is little doubt that Royal Caribbean is pushing the boundaries with its new class of ship, but the competition is hot on its heels. Princess Cruises introduced the Regal Princess to its fleet in May this year, branding it the “most technologically advanced” ship to grace the seas. Seabourn, meanwhile, launched digital news and magazine services
P&O PONDERS PACIFIC CRUISE HUB P&O Cruises is considering the creation of a cruise hub in the South Pacific, with Vanuatu named as a possible destination. Revealed at the Tok Tok Vanuatu 2014 tourism expo in Port Vila earlier this month, the move has been well received by local tourism affiliates who consider cruising to be a key driver of the tourism sector. “Cruising is a very important sector, especially for the outer islands where we don’t have access by air,” Vanuatu Tourism Office general manager Linda Kalpoi told travelBulletin in Vanuatu. “We have over 100 cruise calls each season.” There are currently six locations in Vanuatu where ships dock or moor for tender services, including Port Vila on Efate, Luganville and Champagne Beach on Espiritu Santo, Wala on Malekula, Mystery Island and Pentecost Island. Details of the cruise hub are still sketchy, but Kalpoi flagged an expansion of P&O’s operation in Vanuatu. The cruise operator is also looking to identify a location for Tanna, she added. “They [P&O Cruises] need to have the
hydrographic engineer’s report and other data to identify a site, so that is hindering the development of cruise ship growth in Tanna at the moment,” she said.
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Cruising is a very important sector, especially for the outer islands where we don’t have access by air
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A report released earlier this month showed that the cruise industry injected $34 million to Vanuatu last year, with a further $18 million in indirect economic benefits. The report, jointly funded by Carnival Australia, the Australian Government and IFC, also found that the cruise industry provided more than 3000 jobs in Vanuatu.
this year, Carnival rolled out a 5D theatre, and Celebrity Cruises revealed new technology which manipulates the transparency of glass, allowing guests to shower with views of the ocean. With seven new ships in Australia’s pipeline for 2015 and another 10 in 2016, a wave of ‘industry firsts’ will no doubt make headlines in the years to come. But Quantum of the Seas has set the stage for what lies ahead. The ship is now nearing completion with an estimated launch in October 2014. It will eventually be based in Shanghai where it will cater for the Chinese market.
inBrief ■ TEMPO HOLIDAYS is offering 10% off all river cruises departing from October to March, 2015. A number of European cruises are on offer, including the 14-day Portraits of the Rhone itinerary and the 11-day Netherlands program which visits Voldenham, Arnhem and Bruges before continuing on to Paris. River cruises to Asia are also eligible for the discount, including the 10-day Golden Mandalay cruise and the Mekong Discovery river cruise which covers Cambodia and Vietnam over eight days. Agents should contact Tempo directly on info@ tempoholidays.com. ■ POLAR exploration firm Quark Expeditions has announced it will introduce a third vessel to its Antarctic fleet ahead of the 2015/16 season. The 199-passenger Ocean Endeavour will undergo a major overhaul prior to operating 12 voyages in Antarctica, the Falkland Islands and South Georgia from November 2015. Replacing Sea Spirit for the season, it will also adopt a health and wellbeing focus and offer healthy meals and fitness classes.
travelBulletin SEPTEMBER 2014 27
INDUSTRY IN FOCUS
These agents kicked up their heels at the TravelManagers opening party in Singapore last month.
consultants Elly TravelManagers Jackson. ine Eves and Jasm
From left: Danica Bennett, Megan Stanley, Anita Noon, Michelle Kingston, Daniel Price and Katy Hurd.
TravelManagers consultants enjoy some time out at the annual conference in August. Pictured from left; Graciela Craig, Helen Georganas, Kellie Browning and Zoe Hemming.
28 travelBulletin SEPTEMBER 2014
Agents prepare for the amazing race at the TravelManagers conference in Singapore.
The TravelManagers crew took some time out for a photo stop on a Club Med Nusa Dua famil last month.. Pictured from left, back row: Jeremy Ferguson, Debra Mavin, Melissa Muntz, Anne Marie Selmo, Julie Jenkinson, Karin Evert, Lesley Cavill. Front row from left: Kylie Stokes, Erryn Morris, Beth Burton, Luke Skarbek, Kristina Acevski and Karen Farley.
SEPTEMBER 2014
Michelle Ken Keith Pro na from Sunlove r wse at th e TravelM & Dan Penner fr o anagers conferen m ce.
These agents enjoyed a trip from Saigon to Siem Reap, courtesy of Malaysia Airlines and Travelmarvel. Back row: Tara Porter, Flight Centre; Jess Zacker, Flight Centre; Sarah Wainwright, eCruise & Travel; Thera Lynch, Flight Centre; Simone Kerley, Travelmarvel; Carmel Johnstone, Mordialloc Travel; and Lian Scott, TravelManagers. Front Row: Dana Wissemann, Flight Centre and Alisha Dopper, Travelmarvel. The Emirates team in Melbourne received a visit from AFL heavyweights Travis Cloke, Nathan Brown and Ben Reid earlier this month.
Leak Atkinson from Travel Corporation was the lucky winner of Amadeus’ Works Better promotion, taking home a $1500 Louis Vuitton voucher in August. Atkinson is pictured with Travel Corporation business manager Rebecca Bradley.
Trivia, interactive games and fine wine were on the agenda at the Visit California roadshow in Sydney last month.
Ollie Philpot from Brand USA and Alex Vigil from Visit California pictured at the Visit California roadshow.
Danielle Tuffield from Gate 7 with Debbie Mccamish from Harvey World Travel who took home a trip for two to California at the Visit California roadshow. travelBulletin SEPTEMBER 2014 29
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BROCHURES
■ SCENIC TOURS has launched its 2015 Europe & Britain program, including a number of new tours and add-ons. An eight-day tour of the Scottish Highlands is new to the program and an overnight trip from Venice to London has been added as an extension. The six-night Anzac Battlefields tour now includes a night in Rouen and all land tours have been designed to link with luxury river cruises in Europe or Russia. Earlybird offers are available for bookings made before November 30.
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■ PRINCESS CRUISES has released its Australia & Asia 2014/16 brochure ahead of its largest ever deployment in Australia. With a record five ships to be based in Australia in the coming years, the program includes the debut of the Golden Princess down under and the first summer season of cruises from Fremantle and Brisbane. The guide also features a cruise calendar and detailed information of onboard products and deck plans.
■ ABERCROMBIE & KENT (A&K) has added a number of journeys to its 2015 Africa and Arabia program, including several multi-country tours for independent travellers. Featuring 48 itineraries and extensions, the brochure combines a number of highlights across country borders. Two new camps around the Great Migration in East Africa are new to the offering, along with a new adventure through Namibia and a 26-day exploration of southern Africa that visits four countries.
■ APT is offering savings of up to $1600 per couple to celebrate the launch of its inaugural 2015 Kimberley and Cape York Wilderness Adventures pre-release brochure. The 15-day Kimberley Complete tour and 11-day Cape York and Cooktown Adventure are some of the latest additions, with a number of small group 4WD adventures and cruising options also on offer. The first 100 bookings will save up to $1600 for Kimberley trips and $1200 for Cape York bookings.
■ TRAVEL DIRECTORS has expanded its product offering with three new itineraries for southern Africa, the Baltic region and the Middle East. The 2015 Adventure of a Lifetime program features more than 70 destinations in a different format than previous brochures. New tours include a 25-day Namibia tour, 29-day Baltics and Beyond itinerary and a 17-day Road to the Holy Land itinerary. The Five Stans tour is also new to the offering, covering Kazakhstan, Tajikistan, Uzbekistan, Kyrgyzstan and Turkmenistan.
■ BENTOURS has released its 2015/16 Antarctica brochure featuring a new air and cruise package around the Antarctic islands. Including a chartered flight from Punta Arenas to King George Island, the itinerary also includes an eight-day cruise aboard MV Ocean Nova around the Antarctic islands and peninsula. All landings are made in Zodiac boats and on board lectures are offered by the expedition team.
■ LINDBLAD EXPEDITIONS has released a new brochure to celebrate the 50th anniversary of the Charles Darwin Research Station in Ecuador. The Galapagos 2014/15 brochure features a 10-day Galapagos tour and 16-day Machu Picchu and Peru tour of the Inca Empire. Highlights include a walk and snorkel experience and a daybreak walk over the ruins of Machu Picchu. Prices start from $5490.
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2015
■ FRENCH TRAVEL CONNECTION is set to launch its largest France brochure featuring more Paris experiences and new regional itineraries. The 116-page brochure includes a number of exclusive Monaco packages and WWI battlefield cruises, including a 3-5 night Paris value package and a threenight Monaco experience. Highlights include helicopter transfers from Nice and museum entry. Burgundy indulgence packages are also new to the offering.
travelBulletin SEPTEMBER 2014 31
SOUTH AMERICA
POST WORLD CUP ‘BIG EVENT BOUNCE’ FOR SOUTH AMERICA
The World Cup in Brazil was followed by a massive tourism spike.
By Gary Walsh
S
outh America appears to be experiencing ‘big event bounce’ – the travel phenomenon that prompts a tourism boom after a major event has captured the imagination of the world’s television viewers. This year’s soccer World Cup in Brazil massively raised the profile of the country, and while causing some short-term issues for travel operators, appears certain to drive further tourism. And Brazil also has the 2016 Rio de Janeiro Olympic Games to look forward to. The World Cup did bring some grief for the tourism industry, with flights hard to come by during May and June, and prices hiked massively for airfares and accommodation. But South America Tourism Office’s Delfor Pelletti says his company has experienced 22% growth in business this year, despite the pressures caused by the soccer tournament when “flight availability was non-existent and the cost of the airfare did turn a lot of people off”.
32 travelBulletin SEPTEMBER 2014
Despite that – or perhaps because of the spin-off promotion for the region – future sales are looking particularly strong. “We have a huge number of new agents who have never acted or looked at South America before for their clients,” Pelletti says. “I believe that the World Cup event has set Brazil on the map – we are getting an increased number of people asking for the non-traditional parts of Brazil. The amount of exposure from the World Cup has done a great deal for the destination and we have already experienced lots of enquiries for this year and next year. “We are getting a lot of past clients who had done the typical Peru, Bolivia, Ecuador, Iguazu Falls, Rio and Buenos Aires and now they are coming for Patagonia, Chile or Argentina, before embarking on an Antarctic cruise. “And we are seeing a great number of repeat clients who have done the above and now they are going more for Central America, with Cuba, Mexico and Costa Rica being very hot.” BFirst Travel says 2014 has proven to be another good year “with a constant increase
in demand for travel to Latin America, and a great number of repeat business and referrals since last year”. Director Marcos Da Silva puts this down to a range of factors including the continuing strength of the Australian dollar and the publicity generated by the World Cup. “Despite the slow down of departures to South America during the World Cup due to the lack of seat availability on the flights, 2014 will be another good year for BFirst Travel,” he says. Constantly increasing, Peru has cemented the destination as the operator’s biggest seller, while there has also been an increase in demand for travel to Central American countries such as Costa Rica and Panama. Da Silva says it is sad to lose the pioneering airline between Australia and South America with the departure of Aerolineas Argentinas from the Sydney-Buenos Aires route this year, but the loss has not affected business. He says a majority of clients fly to Latin America with a oneworld carrier, either LAN or Qantas.
SOUTH AMERICA
Exciting new find adds to Peru’s Inca Trail offerings JUNE was a momentous month for Peru with an Inca trail given UNESCO World Heritage status and a new one discovered. UNESCO recognised the Inca Qhapaq Nan road system, also known as the Great Trail. It is inclusive of 273 component sites along the route, extends more than 30,000km and is believed to have been used by the Spanish when they arrived in South America in the 16th Century. Many other roads were built through the lush mountains peaks, so intricately woven by the Incas that new routes are still being discovered. Recently, a team of Peruvian archaeologists found a new trail leading to Machu Picchu. It begins at Wayraqtambo and leads up to a platform where travellers can see the Incan ruins at Machu Picchu from a completely different angle. Tourism officials say the discovery of the new trail will diversify tourism product in the area. “This is a very exciting find for Peru and will enable us to offer our visitors a different perspective and experience of famous Inca citadel,” Tourism Minister Magali Silva Velarde-Alvarez said.
Inca Tours’ Ross Pulbrook also reports a very positive outlook for South America sales. “We have commenced our second series of information nights for the year: 15 in total, mainly in the Sydney region, the Hunter and southeast Queensland. Our September 2014 ‘Sensations Tour’ is departing with 16 in the group (out of a maximum of 18) and eight of those are undertaking Galapagos Island cruise extensions.
“We’ve observed quite an increase in Antarctic cruise enquiries of late. Much of this will translate to bookings.” A&K managing director Sujata Raman says South America remains one of its core products, with business going strong in 2014. “Our current sales to the region are 80 per cent up on same time last year, bolstered by the introduction of our Luxury Small Group Journey portfolio,” Raman said.
Machu Picchu
“It is also further proof of the greatness of our ancestors and why Peru is one of the most important archaeological destinations in the world.” The new trail to Machu Picchu is approximately 1.6km long and 1.2m wide. It is thought to pre-date Machu Picchu which was built at the height of the Inca Empire in around 1450, and was unknown to the outside world before it was discovered by American historian Hiram Bingham in 1911.
“There’s also been a noticeable increase in interest to Brazil thanks to coverage of the World Cup, with guests mostly combining Rio with a stay at Iguassu Falls with the occasional add-on to Argentina. “It’s likely that with ongoing promotion of Brazil around the 2016 Olympics, awareness will continue to grow and that guests will express interest in the many other highlights the country has to offer.”
Visit Brazil and South America with the local specialists Looking for the experts?? Don't look further! We specialize in exotic and esoteric itineraries! We taylor made it for you! Boot camp samba school, Pantanal Horse riding trails, Esoteric tours, Climb tree in the Amazon experience and much more. Triple M joined us for the World Cup 2014. Now it is time for The Rio 2016 Olympic Games. So contact us on 1300 132 636 or info@brazil-travel.com.au and all the enthusiastic crew will help you with your needs.
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SOUTH AMERICA
CONTOURS LAUNCHES NEW SMALL GROUP TOURS CONTOURS Travel has released its 2015/16 South America, Mexico and Cuba brochure for small groups, featuring new add-ons and a community engagement program in the Andes. The flagship Treasures of South America tour has received a revamp and now features a welcome dinner overlooking the Huaca Pucllana ruins, a private bus and train experience and more time to explore Rio de Janeiro.
The 25-day tour also includes 11-days in the Peruvian and Bolivian Andes and an underground archaeological tour in Buenos Aires. A one-day community project is also new to the program, where passengers can present and assemble a water filter at a remote school in the Andes. Customers gain a unique insight to the local community and provide clean water resources to
Peruvian schools. Priced from $9199, the tour includes flights, accommodation and most meals. Tour departures are guaranteed with a minimum of six and maximum of 16 passengers. Contours has also added a 32-day Discover Mexico and Cuba tour to its portfolio which covers the pyramids of Chichen Itza, a visit to the villages of Tzotzil and travel to the Vinales Valley from $10,499.
AFTER WORLD CUP SUCCESS, OPERATOR FOCUSES ON RIO OLYMPICS WHEN Brazil hosted this year’s World Cup soccer tournament, the Triple M radio crew were among the clients who chose Brazilian Travel Centre to organise their trip of a lifetime. But the Melbourne-based operator is not resting on its laurels. It is already selling packages for the 2016 Olympic Games in Rio. As the name suggests, Brazilian Travel Centre specialises in Brazil – but also other South American countries. “Our local knowledge and more than 20 years of experience has given us the ability to
create personalised and unique packages to suit clients’ travel plans,” said chief executive Ester Weiss. “Not only do we offer to our clients the standard trips but also exclusive packages ranging from the highs of tree climbing in the Amazon, throughout the fauna and flora expedition and horse riding trails in the Pantanal to the amazing views and vibrant night life in Rio.” Brazilian Travel provides accommodation, visas, insurance and money transfers, and also offers Portuguese classes in Melbourne and volunteering services in South America.
SOUTH AMERICA
EXPERIENCE PERU’S CULINARY SCENE WITH A&K A&K has designed a new private itinerary showcasing the sophisticated and inventive Peruvian culinary scene. On a nine-day journey, guests scour markets for fresh and seasonal ingredients with a chef, take part in a hands-on cooking class, experience the country’s local produce and vibrant restaurant scene and taste local specialities created using traditional and modern cooking techniques. A&K includes the country’s most important attractions with private Englishspeaking guides. Highlights include the Pre-Columbian artifacts in Lima’s Larco Herrera Museum, a weaving workshop in the Sacred Valley as well as Machu Picchu and the delights of Cuzco. Accommodation sees guests bedding down in Lima’s Hotel B, the city’s first boutique hotel, the Hotel Sol y Luna in the Sacred Valley, Inkaterra Machu Picchu and the stylish La Casona Inkaterra in Cuzco. The Peru Culinary Journey is priced from $7280 per person for travel before November 30, 2014. ■ Within A&K’s 2015 collection of Luxury Small Group Journeys is a family Galapagos trip with a cruise on MV Eclipse that includes tailored activities for youngsters, whale
A&K has operated more than 150 Antarctica expeditions in the past 20 years.
watching, star gazing and more. The 10-day tour has departures in June, July, August and December 2015 with a maximum of 18 guests from $US8845 per adult including airfares. The 10-day tour has departures in June, July, August and December 2015 with a maximum of 18 guests and prices from $US8845 per adult and $US7895 per child, including internal airfares.
■ A&K, which has operated more than 150 Antarctica expeditions in the past 20 years, has chartered the 199-passenger MV Le Boreal for four departures over the 2014/15 and 2015/16 seasons. There are two 12-day itineraries that visit the Antarctic Peninsula, one a dedicated ‘climate change mission trip’ and the other a photographic expedition.
NTIA 2014 APT is thrilled to have won the trifecta at this year’s awards;
Best Cruise Operator International, Best International Tour Operator & Best Domestic Tour Operator
We would like to thank you for your continued support! Call 1300 278 278 or visit www.aptgroup.travel Australian Pacific Touring Pty Ltd ABN 44 004 684 619 APT1070
SOUTH AMERICA
le p u o c r e p 0 0 3 $ SAVE Cosmos South America tour When you book any 2015
Cosmos South America tours include: R Private deluxe-class air-conditioned motorcoach
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*Terms and conditions: Save $300 offer expires 30 Sep 2014. Prices are per person twin share and correct as of 30 Jul 2014. All care is taken to promote correct pricing at time of printing, is subject to tour availability and will be confirmed at time of reservation. From $240 per day based on Brazil, Argentina & Chile Unveiled departing 22/02/15 and includes $150 per person discount. Deposit of $250 per person/per tour required within 14 days of reservation. Book Early & Save 2.5% discount: requires full payment four months or more prior to departure. Discount based on tour including extra night accommodations, extensions and transfers. Second Tour discount: multiple tours must travel in the same calendar year. Repeat Traveller Discount: must be a Journey’s Club member and quote membership number at time of booking to receive 5% discount on the land-only portion of the core tour and twin share price, not including extra nights’ accommodations, extensions, taxes/fees, tips and supplements/reductions. Offer can be withdrawn or amended at any time without notice. Additional may restrictions apply. For full terms and conditions refer to the 2015 Cosmos United States, Canada & South America brochure. Licence: 2TA000637
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MYSTERIES OF THE INCA EMPIRE
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San Francisco Monastery, Sacred Valley, Ollantaytambo and the Inca ruins, Pisac, Machu Picchu, Vistadome train, San Domingo Monastery, Temple of Sacsayhuaman, Motorboat tour on Lake Titicaca, Taquile Island, Uros Floating Islands, Juliaca
Cog-wheel railway up Corcovado Mountain to Christ the Redeemer, Churrascaria dinner; Iguassu Falls & Ecological Jungle train ride, San Telmo, Recoleta Cemetery, Argentinean Tango Show, Santiago Cathedral
From $3,117 per person, twin share
Extend your trip in Brazil’s Amazon, Peru or Easter Island
Highlights
$268 PER DAY
THE BEST OF BRAZIL & ARGENTINA 9 Days Lima to Lima
Highlights Cog-wheel railway up Corcovado Mountain to Christ the Redeemer, Churrascaria dinner; Iguassu Falls & Ecological Jungle train ride; Buenos Aires: Visit San Telmo and Recoleta Cemetery, Argentinean Tango Show
From $2,415 per person, twin share
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FOR BOOKINGS CALL 1300 130 134 or go to globusfamily.com.au/onlinebookings
cosmostours.com.au
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SOUTH AMERICA
COSMOS RE-ENTERS SOUTH AMERICA MARKET COSMOS has stepped back into the South America market after an 11-year hiatus, launching four new Latin America itineraries as part of its 2015 US and Canada program. The Best of Brazil and Argentina program is new to the offering, covering Rio de Janeiro, the Iguassu Falls and Buenos Aires over nine days. Starting from $2415 twin share, the program includes sightseeing tours of Rio’s beaches, flights to the Iguassu Falls and guided tours in Buenos Aires. The 12-day Brazil, Argentina & Chile Unveiled program covers Rio, Copacabana Beach and Santiago from $3117, while the Ultimate South America program visits Buenos Aires, Lima, Machu Picchu and Lake Titicaca from $5381. The Mysteries of the Inca Empire is another new addition that provides an insight to Peru’s colonial heritage before continuing on to Machu Picchu and the Sacred Valley. Priced from $2894, the 11-day program also stops at Cusco, the Temple of Sacsayhuaman and the floating islands of Lake Titicaca. Marking Cosmos’ first South America itineraries in well over a decade, the new tours
Cosmos has added Machu Picchu tours to its portfolio after an 11-year hiatus.
highlight a shift in the company’s focus which has traditionally targeted the Europe and North American market. According to former Cosmos marketing manager Christian Schweitzer, shortfalls in hotel standards had prompted the low-cost operator to pull out of the South America over a decade ago.
But with ongoing demand for low cost South American product, he said the “time was right” to re-enter the market. “Our previous experience in the South America market told us that the standards weren’t really there at a budget price point,” he said. “But there has been so much interest for low cost South America product in recent years that it seemed logical to offer new product to cater for demand.” Schweitzer remained confident the product would be well received, with forward sales already eclipsing product that has been on the market for some time. “We’ve spent the last couple of years refining the product and getting the itineraries right. The product is right, the marketing is good and the returns so far have been pleasing,” he said. To celebrate the launch, Cosmos is offering earlybird savings of $300 per couple on all South America tours booked by September 30. It has also launched a number of add-ons including tours to the Amazon, a cruise to the Galapagos Islands and excursions to Easter Island.
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SOUTH AMERICA HAS NEVER BEEN CLOSER
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SOUTH AMERICA
APT EXPANDS SOUTH AMERICAN GRASP APT has enhanced its 2015 South America program to include longer itineraries and more add-on destinations as travellers look to cover more ground on their holidays. A three-night extension in Atacama, fournight Cuba discovery, and a canyon exploration in Peru are new to the 2015 program, along with an extended Patagonia trip covering Chile and Argentina. New cruising options also include three and four-night tours around the Galapagos Islands, a three-night Patagonia cruise aboard MV Australis and an El Calafate glacier cruise. APT general manager sales and marketing Debra Fox said the new program follows a shift in traveller trends as customers look to diversify their holiday options. “We are finding that as well as enjoying the best luxury hotel experience, guests also want to lengthen itineraries to add on the extra destinations that are important to them,” she said. “We’ve responded to this trend by enhancing our program for 2015, offering more exclusive luxury accommodation and extensions so that guests have more flexibility to tailor their trip.” Meanwhile, Travelmarvel is doubling its South American departures for 2015 on the back of ongoing demand from the Australian and New Zealand market over the past 12
APT has expanded its South America program
months. “We’ve listened to feedback from our travel industry partners and increased departures by 125% for next year – introducing more tours, new cruise partners and a greater selection of sightseeing experiences,” APT chief executive Chris Hall said. APT has had a busy year to date, acquiring an equal share in the Peruvian-based South American operator, Setours in June. The move – which follows 30% year on year
growth in South America – makes APT the only Australian tour operator to hold a major stake in its South American operations and will see the company play a more involved role in shaping the customer experience. “With our own local expertise we’ll be able to branch out across the continent in a phased approach to include even more exciting and exotic destinations for APT, Travelmarvel, and Botanica,” Hall said.
NEW SATO STH AMERICA PRODUCT IN THE PIPELINE SOUTH America Tourism Office is working on a new range of product, including gourmet tours, wine tours and rail tours, as well as new programs in Brazil, Cuba and Costa Rica. This is in addition to newly released group departures for 2015. The Essence of South America tour is one of the operator’s highlights, with a maximum of 16 clients per departure. There is an early bird discount of $300
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INCATOURS
of the best of South America, taking in Chile, Peru, Bolivia, Argentina and Brazil. Highlights include Machu Picchu, Cuzco and the Sacred Valley, Puno and La Paz in Bolivia, Lima, Rio de Janeiro, Iguassu Falls and Buenos Aires. Among the inclusions are breakfast each morning, four lunches and two dinners, tickets on the Vistadome train to Machu Picchu, first-class train from Cuzco to Puno and a firstclass catamaran trip across Lake Titicaca.
Luxury Peru tour new to BFirst BFIRST Travel has introduced a number of new destinations for 2014/15. Among them is the eight-day Luxury Peru private tour that begins with a one-day tour of Lima’s attractions, priced from $US4500. Clients fly to Cuzco and drive to the Sacred Valley of the Incas to explore the Moray archaeological site. Highlights include travel to Machu Picchu on the Orient-Express and free time to explore the city of Lima. Also new is the 15-day Altiplanic Desert Triangle Group Tour which takes in the desert area of the salt flatlands of Argentina, Chile and Bolivia. Highlights include Buenos Aires, Salta, San Antonio de Los Cobres, the Atacama Desert and Tupizia. Tours depart once a month year round and prices start from $US4700 per person, twin share. 40 travelBulletin SEPTEMBER 2014
DUBAI
DUBAI COMMITTED TO TOURISM GROWTH
By Jenny Burns
W
ITH the Qantas-Emirates partnership driving an AustraliaDubai traffic boom, the Dubai Department of Tourism and Commerce Marketing (DTCM) is working with agents and wholesalers to keep visitor numbers growing. The 84 weekly services that Emirates operates between Australia and Dubai are averaging 80% load factors, according to the carrier’s vice president Australasia Bryan Banston. “We are currently seeing typically busy through-traffic to Europe over the northern hemisphere summer, but also end-to-end destination traffic bound for Dubai,” he said. Banston said as the partnership with Qantas continued to grow, so did the number of travellers to Dubai from both regional centres and metropolitan cities alike. “Qantas and Emirates operate 98 flights per week to Dubai from Australia, including six daily A380 flights,” he said. “Since the commencement of the partnership in 2013, DTCM saw the number of Australians staying in hotels in Dubai rise by 39% year on year,” Banston added.
42 travelBulletin SEPTEMBER 2014
According to director of the Dubai, Department of Tourism and Commerce Marketing, Australia and NZ Representative Office, Julie King, the Australian market experienced impressive growth of 39% in 2013, positioning Australia as Dubai’s 11th most important source market. And latest figures show a further 6% growth from Australia and 8% from New Zealand in the first half of this year. “Globally, Dubai welcomed more than 11 million visitors in 2013 (309,239 visitors from Australia and New Zealand) and continues to work towards attracting 20 million visitors per year by 2020 to achieve the Tourism Vision 2020,” King said. “We are dedicated to further strengthening our relationships with our key retail, wholesale and airline partners to support this growth. “We will shortly be announcing the appointment of two newly created positions to include a regional sales manager VIC/SA/TAS based in Melbourne and a regional sales manager – WA to be based in Perth. “Over the next few months we will also be increasing trade and public relations activities across all markets.” King said it was essential to continually
update and educate key trade partners across Australia on new Dubai developments. To help with this a series of “interactive and fun workshops” will be held with key partners in retail, cruise and business events over the coming three months. Also planned for the last quarter of 2014 is the launch of a new global marketing campaign aimed at supporting Dubai’s new brand which was released at the Arabian Travel Market (ATM) in May. “The new brand expresses Dubai’s culture of success and its spirit of rising to any challenge,” King said. “It includes a new logo which features the word Dubai written in both Arabic and Roman alphabets. “This represents the fact that the city is a fusion of cultures and nationalities – a result of the historic and present day approach of being outward looking and open to ideas from across the globe.” Also previewed at ATM, and due to be launched in the last three months of the year, is a new website and app. “Both have been designed to inspire and inform at every stage of the consumer journey and help the visitor experience the city to the fullest while in Dubai,” King said.
DESTINATION DUBAI
dubaitourism.com WHILE Dubai is the most logical stop off for anyone flying from Australia to Europe, it’s worthy of so much more than the ‘stopover’ label. Dubai is a holiday destination in its own right. Just stopping off gives a fleeting glimpse of what is a remarkable destination – one that offers world-class shopping, dining and nightlife, and fun for all the family. Even four nights is a push for anyone who truly wants to explore this city. This isn’t just a place to see – it’s a place to experience – and Dubai will never disappoint.
DUBAI FOR FAMILIES For the average family, Dubai gets everyone’s vote, appealing to old and young. Don’t miss: Q The waterparks of Aquaventure and Wild Wadi. Q Ski down a snowy mountain in a shopping mall Q The chance to come nose to nose with a dolphin at Dolphin Bay.
Q The art galleries – admire the art on show in the galleries of Al Quoz, DIFC and Al Fahidi
DUBAI FOR FOOD LOVERS With new restaurants appearing every month, Dubai is fast emerging as a leader on the global gastronomy scene. Q Dishes from around the world – virtually every nationality dish is on the menu. Q Five-star cuisine – Dubai is renowned for its cuisine with many celebrity chef outlets. Q Local bites – Emirati food is rich, varied and full of remarkable flavours.
DUBAI ON A BUDGET While Dubai is proud to be known as a fivestar destination, that doesn’t mean to say it has to be expensive. Good-value hotels are increasingly opening and it’s surprising how much of the city you can see on a budget. Here are a few examples: Q Crossing the Creek in an abra (wooden boat) is a must on everyone’s itinerary. Abra trip fee is only Dhs1. Q Watch the stirring shows of The Dubai Fountain as the water dances to music every evening – Free!
DUBAI FOR CULTURE VULTURES
DUBAI FOR ADVENTURE SEEKERS Whether your client is an adrenaline junkie or simply looking to enjoy the great outdoors – Dubai is the perfect playground. Don’t miss: Q Skydiving 13,000ft over Palm Jumeirah. Q Dune bashing over the desert. Q Dive into the 11.5 million litre Ambassador Lagoon at Atlantis where you are guaranteed to glide alongside sharks, rays and more.
Dubai prides itself on its Arabian roots and Emiratis are justifiably proud of their Arabian heritage. Home to more than 200 nationalities, Dubai is a cultural hub for art, film, music, literature and theatre. Don’t miss: Q A tour of Dubai Museum – discover the city’s fascinating growth from a small fishing village to vast metropolis. Q The winding lanes and courtyard houses of the Al Fahidi Historical District – the oldest heritage site in Dubai.
Q Run wild on Dubai’s sprawling green city parks, such as Safa Park or Dubai Creek Park – Free! Q For more detailed fact sheets of these market segments write to dtcm_aus@ dubaitourism.ae
DUBAI
NEW DUBAI ATTRACTIONS DUBAI is gearing up for the opening of a number of major developments in 2014/15. Among them are the Wire World Meydan Adventure Park, slated for completion later this year. Billed as the largest man-made adventure park of its kind in the world, the park is the first ever adventure rope course in the UAE. Located at the heart of Meydan alongside the racecourse, Wire World covers 25,000 square feet and features 70 obstacles set in trees. The park also incorporates a bike park, a bungee trampoline and visitor facilities. ■ Due for completion within the next six months is the Dubai Safari Project featuring a park of almost 400 hectares. The park includes safari, Arabian, Asian and African villages plus a children’s zoo, butterfly park and botanical garden. About 1000 animals from across the world will be housed in temperature-controlled environments and animals from the current Dubai Zoo will be transferred to the new venue. ■ Other projects due for completion in 2015 include the Deira Fish Market and IMG Worlds of Adventure, said to be the world’s largest temperature-controlled indoor themed entertainment destination. ■ The Dubai Frame is an iconic centrepiece
within Dubai’s Zabeel Park. Standing 150 metres above ground and 93 metres wide, the hollow shape will resemble a huge picture frame. At the base, visitors will follow a path detailing the history of Dubai using modern technology, before taking an elevator to the top of the frame where they will walk along a glass-floor bridge. ■ Due for completion in the second quarter of 2015 is the Hatta Village Inn and Market Project. The 92,500 square foot Hatta
Heritage Souq and Motel will incorporate as many as 46 stores and three main restaurants. The first floor will comprise a multipurpose hall, 32 hotel rooms and two suites that overlook the neighbouring valley. ■ Quran Park is also due to be completed in September 2015. Located in Al Khawaneej, the park will span 65 hectares and be designed with the Holy book of the Qu’ran in mind featuring many of the 54 plants that are mentioned in the text.
AGENT ACTION The Wright way of selling Dubai
New hotels for Dubai This year has seen a number of new hotels open in Dubai. Developments include the Waldorf Astoria Dubai Palm Jumeirah, Marriott Hotel Al Jaddaf, Dubai and the Warwick Hotel Dubai. Also new in 2014 are the Sofitel Dubai Downtown Dubai, Double Tree by Hilton Dubai – Al Barsha, and DoubleTree by Hilton Dubai – Jumeirah Beach. The Intercontinental Dubai Marina is also set to open in November this year, while the Four Seasons Dubai Jumeirah Beach is due to open in December. The Pullman Dubai Jumeirah Lakes Towers is also scheduled to open in 2014.
44 travelBulletin SEPTEMBER 2014
PARTICIPATING in the recent Dubai Department of Tourism and Commerce Marketing /Emirates Mega Familiarisation to Dubai has proven to be most beneficial for Adelaide-based Travel Prospects managing director, David Wright. “It was good to see first-hand Dubai’s hotels and resorts as well as its water and theme parks,” he explained. “As many of my clients are families, being able to discuss the parks on offer is important, as kids often have a say in where holidays are taken.” Other highlights of the famil included the many and various shopping malls, although the action-packed itinerary meant little time for shopping. “I also really enjoyed the cultural experience of meeting the locals in their own backyard,” David added. He said Dubai has become a very
popular destination with his clients since Emirates started direct flights from Adelaide in November 2012. “I would say around 60% of my clients going to Europe and 80% going to Africa now fly Emirates and go via Dubai,” he said. “At least 70% of them would have some form of stop-over in Dubai ranging from an overnight stay at an airport hotel to longer stays at five-star beach resorts. “High tea at Burj Al Arab is another hit with my clients with around 50% participating in this memorable experience. “After my famil I can confidently continue to recommend this and a number of other Dubai experiences, including a stay at Madinat Jumeirah. Based on what I saw, and the feedback from my clients who have stayed here with their families, it’s somewhere you could easily stay for a week at a time.”
CHINA
AUSSIES LOOKING FURTHER AFIELD IN CHINA
By Gary Walsh
R
EPEAT visitors to China are looking further afield than the typical Beijing-Shanghai-Xian route, while the destination’s new 72-hour visafree policy is proving a boon for corporate travellers and stopovers. Helen Wong, founder and managing director of Helen Wong’s Tours, says China’s historic treasures, scenery and cultural values continue to attract Australian travellers. “Sure, Shanghai, Beijing and many of the other major cities have embraced contemporary change. But that has taken place without detracting from the old traditions, cultures, landmarks and food that have moulded China,” she says Wong, who has taken travellers to the People’s Republic for 27 years, says group tours remain healthy, but there is a growing demand for “more flexible independent guided tours”. A&K managing director Sujata Raman says the company’s China sales are up 15% year-on-year, led by FIT business and A&K’s
‘Connections’ product where guests choose between small group journeys or private tours with set departures. Meanwhile, airlines are enthusiastic about the 72-hour visa-free policy - which applies to Australian passport holders visiting Beijing, Shanghai and Guangzhou - acknowledging its potential to boost demand for stopovers. Travel Indochina reports that China sales are up 22% for the second quarter of the calendar year, with managing director Paul Hole observing increased interest when the visa program was launched last year. “This has translated to an increase in short stays in Guangzhou from business clients over the past 12 months, especially over trade fair dates,” he says. In the case of longer stays from leisure travellers, Hole echoed the comments of Wong and Raman, identifying high demand for “insider experiences” which go beyond the classic icons and explore China with more intimate experiences that are only available to small groups. These travellers, Hole says, are increasingly looking for bespoke experiences which go one
step further than mainstream China holidays. “Travellers who select this style of travel seek insights and information to help them understand the culture, lifestyle and traditions of the areas they visit,” he says. Wendy Wu Tours head of product Adam Burke reports the earlier release of earlybird specials has generated a significant increase in forward bookings for 2015, particularly for repeat travellers to China. The company’s 18-day Ancient China tour has been the top pick for the year ahead, he adds. Burke is unsure whether the 72-hour stopover has impacted bookings or encouraged travellers to stopover in China en route to other destinations, however he admits it “does now allow that possibility”. “Travellers choose an airline to Europe based on price, or they choose a particular carrier of long standing repute or based on its hub as a potential stopover break. “It is getting people to consider China as an option as a stopover destination for their European holiday, which is a challenge for the Chinese airlines,” he says. travelBulletin SEPTEMBER 2014 45
CHINA
HELEN WONG PACKAGES REGIONAL EXPERIENCES
Jiuzhaighou, alpine region of China (photographer – Ken Duncan)
LONG before tourists began to visit China’s Jiuzhaigou region, local Tibetans celebrated the area – now a national park – for its remarkable natural beauty by naming it “Son of the Sea”. In western terms, it was a fairytale world. Since 1984 when the region was recognised as the Jiuzhaigou Valley Scenic and Historic Interest Area, the number of annual visitors has grown from just 5000 to more than 2.5 million. Such is the area’s allure, that during peak seasons a quota of 12,000 tourists a day is enforced. Helen Wong’s Tours (HWT) says the attractions of Jiuzhaigou, at the southern end of the Minshan mountain range, 330km north of the Sichuan provincial capital of Chengdu, are its natural multi-coloured lakes, waterfalls, mountains, wildlife, grasslands and iconic Tibetan villages. In 1992, Jiuzhaigou was listed as a UNESCO World Heritage Site, and five years later a World Biosphere Reserve. Just over half of the area is covered by forests, bamboo and a variety of flowers and herbs, and in autumn, the forest is a riot of colour. Local Sichuan Giant Panda Sanctuaries are a significant drawcard for travellers that are featured in a number of HWT group tours including the 19-day Jewels of China itinerary. The tour includes a four-night stay in Beijing and a visit to Xian, home of the Terracotta Warriors. Also included is a cruise on the Yangtze and its spectacular Three Gorges between Chongqing and Yichang, and a stay in Shanghai. The tour is priced from $6690 per person, twin share including accommodation, most meals and return airfares from Australia.
AIR CHINA CELEBRATES 30 YEARS IN AUSTRALIA AIR China will celebrate 30 years in the Australian market with a special event to be held in Sydney’s Martin Place on October 30. Air China was the first Chinese airline to operate into Australia, with the inaugural flight from China to Australia on September 7, 1984 between Beijing and Sydney. Air China soon ramped up the service following quick success, and in April 1987 began offering flights twice a week from Beijing and Guangzhou to Sydney and Melbourne. By 1996, Air China saw further market potential for Australia and introduced a route between Beijing and Sydney via Shanghai. In 2002, yet another new route was added – Shanghai to Melbourne and Sydney.
Today, Air China operates three routes to China including a direct service between Sydney and Beijing (Flight CA174/CA173) five times a week, a direct service between Sydney and Shanghai (CA176/CA175) three times a week, and a service between Melbourne and Beijing via Shanghai four times weekly. The airline increases frequence during peak
seasons with daily flights on its direct services and an additional service between Melbourne and Beijing via Shanghai. Air China has also rolled out a number of new international routes which use Beijing as the main transit point. The carrier has made significant efforts to improve its network in 2015, launching new routes from Beijing to Honolulu, Beijing to Vienna and Barcelona, Beijing to Jeju, Beijing to Washington, Shanghai to Munich, Beijing to Yangon, and Chengdu to Yangon via Kunming. Air China also has two domestic routes which offer in-flight broadband internet access. The technology is soon to be offered on Air China’s Australian route.
CHINA
New visa rules deliver more traffic
Silk Road
HISTORIC SILK ROAD JOURNEY TRAVEL Indochina has singled out September as the best time to visit the Silk Road across China’s northwest. The company’s 16-day Silk Road Small Group Journey follows part of the world’s great trade routes, Xian to Kashgar via Lanzhou, Xiahe, Jiayuguan, Dunhuang, Turpan and Urumqi. Highlights include Xian’s Terracotta Warriors, a boat journey to the Bingling Si Caves and a visit to the active Labrang Monastery in Xiahe. Clients also gain an insight into local life at a Tibetan home, climb a remote part of the Great Wall at Jiayuguan, and go camel riding along the sand dunes at Dunhuang.
Clients can also see ancient Buddhist cave art at the Mogao Caves, enjoy lunch at a Uighur home in an oasis town, and stop for a visit to Kashgar’s famous Sunday Bazaar followed by a walking tour through the city’s backstreets. Limited places are available on the tour, which has a maximum of 16 passengers. The package includes 13-nights of hotel accommodation, two overnight soft sleeper train rides, three internal flights and return transfers. The tour is also led by local English speaking guides and a Western tour leader based on a minimum of seven travellers. Prices start from $5670 per person twin share.
CHINA Southern says the 72-hour visa-free arrangement has lifted the profile of the airline’s hub, Guangzhou, as a stopover destination, with Australians particularly receptive to the new program. “It’s early days, but there has been a noticeable increase in travellers taking stop-overs in Guangzhou since the visa-free system was introduced,” regional general manager Australia and NZ, Henry He, said. Australians represent 30% of all travellers taking up the arrangement, he added. Following “continued strong growth” out of Australia this year, He said business class was China Southern’s strongest performing market in 2015, led by competitive fares and recent cabin imprvoements. China Southern will increase capacity and frequencies to meet expected demand for the peak summer period, with its A380 service set to return to Sydney over the period. The airline will also ramp up its Brisbane service to daily, and its Melbourne service will become a twice daily service.
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CHINA
A&K’S NEW LUXURY SMALL GROUP TOURS A&K has rolled out a new portfolio of luxury small group journeys for China in 2015. All tours feature hand-picked accommodation in selected luxury hotels, boutique camps and lodges, small-ship experiences and “one of a kind” locations. With a maximum of 18 passengers, travellers will receive a complimentary laundry service midway through the journey, private airport transfers regardless, and their own travelling bell boy. Family departures which are led by a Young Explorers Guide are also on offer. All tours feature age-appropriate activities, local language introductions and family discovery opportunities. October departures are still available on the 17-day China, Tibet & the Yangtze journey, with highlights including a three-night cruise on the Yangzi River on board Sanctuary Yangzi Explorer in deluxe cabins offering views of the Three Gorges from the balcony. Dates for 2015 are now available on the two-day Connections Life Along the Yangtze tour, priced from $US416 per person, per day. Higlights include visits to Hong Kong, Xian and Beijing with a five-day luxury Yangzi cruise. Five star city accommodation is included, with group sizes no greater than 24 travellers. Regular scheduled departures between April and October are guaranteed with a minumum of two guests. Clients after a unique experience may also consider A&K’s fourday experience to Datong and Pingyao in Shanxi province. The tour visits ancient Chinese Buddhist grottoes, the 600-year old Nine Dragon Screen, an 18th century courtyard estate in the old walled city of Pingyao, and visits to China’s earliest bank.
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UNIQUE features such as private museum access and high-end properties in remote regions are front of mind for clients travelling to China, according to joint managing director of Savenio Travel in Brisbane, Elizabeth Clark. While Beijing and Shanghai remain popular options for Australian travellers, Clark’s agency has been pushing individual visits to Xian to see the Terracotta Warriors and Chengdu for the giant pandas. Cruising has also become an increasingly important part of the business, including both river and ocean cruises. City stays and FIT packages remain the core of the business, either as a standalone or in conjunction with cruising, but Clarke says more co-ordination between cruise lines would allow clients to take multi-city cruises. “China has a lot of diversity... and the ancient culture and natural beauty are also something that clients travel to different areas to see and appreciate.” Clarke sees coastal Sanya on Hainan Island as a destination that challenges the traditional view of what a visit to China might bring. She says the 72-hour visa-free arrangement has driven little business for her agency as the majority of her clients are visiting China as a discrete holiday rather than a stopover destination.
1300 788 328
Conditions: Prices are per person twin share ex. SYD, MEL, BNE, PER or ADL. Airfare supplement may apply Ex. ADL or PER. Airfare based on specific class and subject to availability at time of booking. Prices are correct at time of printing and are subject to change without notice due to changes on currencies, taxes and fuel surcharges. Seasonal surcharge apply. Other condition and tour details as per Helen Wong’s Tours current 2014/15 brochure. ATAS accreditation #A10695
48 travelBulletin SEPTEMBER 2014
CHINA
MACAU’S SPLIT PERSONALITY ATTRACTS VISITORS MACAU is a compelling destination, not only for its centuries of East meets West heritage, but also for the way its historic character moulds with its contemporary features, according to Macau Government Tourist Office Australia and NZ managing director Helen Wong. “It’s definitely a centre with a split personality that is very unique to Asia. Despite its fascinating historic past and the tasty ingredients which make it special, Macau is a city on the move with much change taking place in shaping its modern appeal,” she says. With construction on the 29.5km Hong Kong-Zuhai-Macau bridge set to be completed at the end of 2016, the project is breaking new ground for a number of hot spots on the Cotai Strip. For instance, it will ease access to the Construction of the MGM Cotai project is now underway, islands of Taipa and Coloane, home to enter- with completion expected in early to mid 2016. tainment precincts as the City of Dreams, Sands (The Venetian) and the Galaxy. Other projects include the Parisians, There will also be the Versailles-like Lisboa which will feature a smaller version of the Palace, a project costing more than $4.5 Eiffel Tower, complete with an observation billion, complete with three hotels including deck and 200-seat restaurant. a Palazzo Versace and another designed by
Karl Lagerfeld, the chief designer for the Chanel and Fendi fashion houses. The City of Dreams, which recently celebrated its fifth anniversary, has also commenced work on a new hotel tower, featuring a 40-storey complex with a 30 metre lobby atrium, restaurants, spa, and ultra lounge. It will also feature a sky pool, 780 guestrooms, suites and villas set to exceed five-star standards. Both are expected to open in 2017. MGM is developing another contemporary Cotai project that will include 1600 hotel rooms. Completion is slated for early to mid 2016. Meanwhile, work is also underway on Wynn Resorts’ 1700-room entertainment and hotel complex, also set to open in 2016. Cotai is also home to the iconic resort and theme park, Chimelong Ocean Kingdom; a $5 billion attraction billed as China’s answer to Orlando in Florida. The park features a circus and open zoo, mega rollercoaster ride and a whale-shark tank, as well as 1880 hotel rooms, a conference centre, spa and indoor water park.
APARTMENT HOTELS
APARTMENT HOTELS, UNTAPPED MARKETS
Oaks Rivermarque, Mackay, Queensland
By Lee Mylne
W
HILE Australian travellers are already enthusiasts, an untapped market of international visitors – particularly from China and India – is waiting to discover the benefits of apartment hotels. According to the latest IBISWorld report for Australia’s serviced apartment industry, the challenge for apartment hotels in the next five years will be to make international travellers aware of their existence and the benefits they provide. Report author Ryan Lin says apartment hotels have been the strongest performers in the travel accommodation market over the past decade. But he says the “biggest opportunity” lies in attracting international travellers, who currently make up less than 20% of the industry’s total guests. “While the serviced apartment industry is strongly placed among accommodation service providers, the industry has battled a strong Australian dollar and cheap international airfares for much of the past five years. “These factors are driving Australian tourists overseas at the expense of the domestic 50 travelBulletin SEPTEMBER 2014
tourism market, meaning serviced apartment operators in Australia’s traditional getaway destinations, such as the Gold Coast and Sunshine Coast in Queensland, are struggling.” The report says that demand from both international tourists and business travellers is expected to improve over the next five years, helped by an easing Australian dollar and improving global economic conditions, but more can be done to convince international visitors to use apartment hotels. “As Asian travellers continue to play their part in the Australian tourism market, serviced apartment operators need to find a way to gain a greater share of this market,” the report says. “When travelling to Australia, overseas tourists generally prefer luxury accommodation with higher star ratings and levels of service. This is for a variety of reasons, but mainly because luxury hotels are generally located near main attractions. “The typical international tourist also does not require the self-catering facilities... and hotels in CBD locations have been more successful at marketing to international tourists, assisted by their globally recognised brands.” But Lin says many international visitors are “simply not aware” serviced apartments exist and may not be familiar with the benefits they
offer such as greater space, the ability to selfcater, and lower prices. “The industry has proven to be adaptable to consumer preferences in the past and should thrive on this challenge by increasing their provision of top-tier serviced apartments.” He says apartment hotels need to raise awareness among tourists from Australia’s major inbound markets: China, Japan, South Korea, Singapore, Malaysia and India. “Since holidaying abroad is a recent luxury in many of these Asian countries, tourism to Australia is expected to surge over the next five years as middle-class wealth grows,” the reports says, noting that Deloitte Access Economics projects international visitor nights in Australia will overtake domestic visitor nights by 2018. “Serviced apartment operators will boost their comfort levels on offer, and up the luxurious experience if they hope to capture market share in this segment. “Over the next five years, the foreign markets expected to drive growth are China and India. Serviced apartment operators need to adapt to these growing markets so as to appeal to more international travellers.” Currently, more than 50% of nights spent in serviced apartments are booked by holidaying Australians.
APARTMENT HOTELS
CENTARA IN MAURITIUS
THE first phase of the five-star Centara Grand Azuri Residence & Suites Mauritius has opened, with an initial 32 of the 57 serviced residences, townhouses and penthouses now available. Operated by Centara Hotels & Resorts of Thailand, the development is located on the northeast coast of the island, set directly on the beach, and forms part of the new Azuri oceanfront lifestyle community, which includes shops, restaurants and a yacht club with marine facilities. The residences are adjacent to the five-star Centara Grand Azuri Resort & Spa Mauritius, which opened in December 2013, and residents have access to the facilities of the sister resort. Located in the heart of the village, 25km from the capital city of Port Louis, a 20-minute drive from the town of Grand Baie, and just over one hour’s drive from the international airport, they are also close to Azuri market place, shops and restaurants. “There is a wonderful sense of community here, and with the spacious and very stylish décor of the apartments, townhouses and penthouses, we feel that the residences will
Artist’s impression
appeal to couples, families and groups of friends travelling together,” says Jean-Paul Martin, area general manager for Centara Mauritius. “For leisure there is the beach and the lagoon, with about 60 different water sports and land-based activities available,” he says. The residences are grouped into zones and offer a variety of accommodation options with two, three or four bedrooms and spacious outdoor areas, some with private plunge pools. Each zone also has its own swimming pool. Guests have free access to activities of sister resort Centara Grand Azuri Resort & Spa Mauritius, including non-motorised water sports such as snorkelling, kayaking, windsurfing and sailing, and use of the tennis court, quad bikes and other facilities. The nearby Azuri Yacht Club will arrange excursions including catamaran trips to the islands of Coin de Mire, Round Island, Flat Island, Ile d’Ambre and Ilot Gabriel. Adrenaline packed activities, such as parasailing, undersea walking and underwater scooters, hiking and mountaineering, canyoning, and skydiving can also be arranged by the concierge.
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APARTMENT HOTELS
First 50 apartments now open at Mantra on Edward St MANTRA Group has added two new properties to its Brisbane network, bringing the total to six hotels in the Queensland capital – ďŹ ve under the Mantra brand and one under BreakFree. An opportunity to take on the lease of the landmark Observatory Tower, on the corner of Wickham Terrace and Edward Street, will see the 24-level residential building converted to a full serviced apartment hotel. Refurbishment of the ďŹ rst 50 apartments is expected to be completed this month when the property will rebrand as Mantra on Edward Brisbane. The 114 remaining apartments are scheduled to be completed in March, 2014. Built with residential tenants in mind, the apartments are substantially larger than standard apartment hotel rooms, with two-bedroom apartments measuring up to 124 square metres and three-bedroom up to 165 square metres.
OAKS EXTENDS TO MACKAY OAKS Hotels & Resorts has this month opened its 48th property, Oaks Rivermarque, its ďŹ rst hotel in the Queensland coastal city of Mackay. The 138-room, 4.5 star serviced apartment complex is located in the Mackay CBD, fronting the Bluewater Lagoon leisure facility. It offers corporate and leisure travellers self-contained accommodation with an indoor swimming pool, spa, gym, barbecue area, sundeck, business services, and free parking. Apartments have kitchen and laundry facilities, open-plan lounge and dining areas, and private courtyards and balconies. All rooms have king size beds, LCD TVs with Foxtel, reverse cycle air-conditioning and 30 minutes of free wireless internet daily. Oaks Hotels & Resorts CEO Brett Pointon said the resort was a welcome addition to Mackay. “Mackay is a unique destination in that it is a growth corridor servicing a mix of leisure travellers wanting a taste of life in the tropics, and corporate visitors conducting business in the region’s key industries of coal mining and agriculture,â€? he said. Oaks Rivermarque’s opening specials start from $169 per night for a hotel room, $179
The newly built Oaks Rivermarque in the Makay CBD.
for a studio, or $199 for a one-bedroom apartment, including late check-out. Oaks will this month relaunch Caloundra’s 18-room Oaks Oasis resort following a $9.7 million refurbishment. Mantra has also rebranded the 84-room Diamant Hotel Brisbane as Mantra Terrace Hotel Brisbane.
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travelBulletin SEPTEMBER 2014 53
THE LAST WORD
CELEBRITY SPOTTING
Selling in September:
TOP 5 TIPS FOR AGENTS 1. Segment the market into two traveller types – those with more money than time, and those with more time than money. Travellers in the former category often call on travel agents to handle every aspect of their trip, so it’s worth targeting and tailoring your selling style. 2. Being responsive and contactable pays dividends in the business of travel. Use a smartphone when you’re not in the office and be extremely responsive at all times. Google Voice is another useful tool that allows you to streamline all phone calls to one number.
Send your celebrity pics to celebrity@travelbulletin.com.au and keep your eye out for the next issue of travelBulletin Travel Daily general manager Christian Schweitzer pictured with Will Smith and his pal in Tokyo, 2002. Smith was promoting the boxing film ‘Ali’ which raked in over $87m at the box office.
Where in the World? Any idea where you would be standing if you were taking this picture? If you’ve got any clue, drop us a line at comps@travelbulletin.com.au for your chance to win a double movie ticket.
1001 Uses for Airline Pyjamas Ever wondered what to do with all of those airline pyjamas that are clogging up your closet? Don’t despair, our 1001 Uses for Airline Pyjamas column will help you out with a new idea every month. We’ve got plenty to choose from – 1001 in fact – so don’t throw out those airline PJs too fast.
No 326 – Sew the bottom together, tie the arms into a knot and use it as a library bag for your kids.
FUN FACTS: did you know…
One third of all airports in the world are located in the US, with around 14,000 spread across the country.
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5. Do a self-check and ask yourself whether you’re delivering the best value to clients. The market is constantly changing so it’s worth having a variety of strategies to give your clients the most bang for their buck. It’s also worth evaluating your rates to ensure they are competitive on a broader scale. Send your top agent tips to tips@travelbulletin.com.au and go in the draw to win a double movie ticket.
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In 1930, female flight attendants had to weigh less than 52kg.
France is the most visited country in the world with a whopping 84.7 million arrivals in 2013.
4. Get social. Engage with your clients on Facebook and get them to fan your page and post reviews of your services. You can connect with customers by posting tips, specials and deals online. However, Facebook is most successful when posts are less about selling and more about sharing useful knowledge.
Level: easy
Around 300 people get married in Las Vegas every day.
Austrians have the most vacation time of any country across the globe. Austrians get at least 22 paid vacation days and 13 paid holidays each year. The US, meanwhile, is the only developed country without a single legally required paid vacation day or holiday.
3. Differentiate yourself from online booking solutions by giving clients a highly personalised service. It’s also useful to develop a repertoire of experiences to improve your unique selling point. By connecting with clients, you will increase your chances of securing repeat clients.
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An aeroplane takes off or lands every 37 seconds at Chicago O’Hares International Airport. That’s almost 100 planes per hour. British Airways lost the luggage of an average nine passengers on every jumbo jet flight in the first half of 2008, according to a study by the Association of European Airlines.
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