travelbulletin oct14

THE RAMIFICATIONSOF REFORM

OCTOBER 2014

WIN a luxurious

THAI escape

EARLYBIRD FARES EXPLAINED

ADVENTURE BOUNCES BACK

EUROPEAN ENCOUNTERS

SKI BIG IN JAPAN

Replenish your soul in the heart of Arabia. A holiday to Oman is a sensory journey. The fragrance of frankincense and oudh follows you around town. Sparkling vistas abound and, at the end of the day, pamper yourself with a massage on your private beach.

TOTAL INDULGENCE

Oman is a natural wonderland, and a haven for enthusi

asts of the great outdoors. Hikers delight

in its canyons, mountains, oases and coastal walks. Wat

er-sports enthusiasts appreciate the unspoiled

coastline of islands and beaches, and seas brimming w

ith a rich marine life. And the golden sand

dunes are perfect for adventurers and romantics wholl

love the mesmerising sunsets.

GRAND ADVENTURE

The landscapes are stunning and the weather is beautiful all year-round. Combine that with the historical capitals of Nizwa, Muscat and Sur bustling with museums, galleries and restaurants and there is always something around every corner to capture the imagination. Whatever youre seeking, youll nd it in Oman.

WILD AT HEART

Witness age-old traditions such as clay po

ttery, carpet weaving and the indigenous

rock rose harvest

perfectly preserved and passed down thro

ugh generations. Feel the energy and exci

tement

of the weekend souks, where locals conve

rge to display their best merchandise and

haggle

for others. In Oman, the traditions of the

bygone era are still being practiced today.

ANCIENT PATHS

* 1. Airfares listed are based on the Etihad Airways and Virgin Australia Early Bird to Europe and are per person return economy fares and must be purchased in conjunction with a Trafalgar Guided Holiday. 2. *Full air payment (incl. taxes) must be made within 4 days of reservations or by 24 October 2014, whichever is earlier. Bookings made between 24 October 2014 and 31 October 2014 requires immediate payment. Etihad Airways and Virgin Australia reserve the right to advise an earlier airfare TTL date, subject to booking conditions and restrictions. All air bookings are to be created and owned by Trafalgar. 3. Fares are valid for departures 01 Feb 2015 to 31 Oct 2015 inclusive, subject to booking class availability. Blackout period applies on the rst inbound sector departing between 04 Jul 2015 to 03 Aug 2015, 01 Oct 2015 to 16 Oct 2015, 9 Dec 15 23 Dec 15 2015. 4. The prime booking code for Etihad long-haul is E class. The prime booking code for Virgin Australia long-haul is T class. Flight and code share restrictions apply. 5. Stopovers are permitted at transfer points. Additional taxes and fees may apply for stopovers. 6. One change permitted free of charge when inbound date is out of system range. Before departure, re-booking / re-routing permitted at AUD75 per change. Bookings may also incur additional fare, tax and surcharges, subject to fare reassessment. All amendments will incur a (insert company name here) fee of $35, local fees may apply. After ticketing and before departure, cancellations and refunds are permitted subject to an AUD550 cancellation penalty. After departure ticket is nonrefundable. Please quote promo code APDUBLIN15 at time of booking. ~ $979 saving per couple ($489.50 per person) based on maximum 10% Early Payment Discount saving on Britain & Ireland Grandeur departing 25 July 15 August 2015 when paid in full by 18 December 2014. Early Payment Discount is subject to availability at time of booking and may be withdrawn at any time. For full terms and conditions see Trafalgars Europe and Britain 2015 brochure or visit www.trafalgar.com. Trafalgar is a participant of the AFTA Travel Accreditation Scheme. ATAS number: A10534 TT3076

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travelBulletin OCTOBER 2014 1

CONTENTS

COVER STORYThe rami cations of reform

This months contributorsSteve Jones, Peter Baily, Matt Lennon, Jayson Westbury, Brett Jardine, Lee Mylne, Peter Watson, Gary Walsh, Rachael Oakes-Ashe

From the managing editor

FIRST and foremost, thank you to the hundreds of readers who gave us their feedback on the rst new look travelBulletin last month. Our team is truly humbled at the huge response and we hope you enjoy this issue just as much please let us know what you think by sending an email to [email protected].

Among all the other activity in the industry, this month we have coverage on the continuing travel agent conference season, with many groups holding their annual gatherings during October and November.

travelBulletin and Travel Daily have already attended the TravelManagers conference in Singapore, and in the coming weeks we are at out, heading off to conferences to be held by Travellers Choice, Travel Partners, Magellan and the Independent Travel Group, among others.

However one notable exception to our calendar has been the much-touted Helloworld Owner Managers Conference, which took place earlier this month in Los Angeles. Some years ago Helloworlds predecessor JTG welcomed coverage of its events, but with the major makeover of the company and the attempted axing of its various brands it appears somewhat of a siege mentality has developed.

So much so that when travelBulletin posted a Facebook photo of the Helloworld management team after bumping into them at the airport when they were en route to Los Angeles for the conference, we were asked to remove the image in short order because apparently its not a good look.

Its all very well to receive sanitised photos and press releases after the fact, but in this day of instant updates and social media this type of manufactured news is easily seen through as evidenced by the plethora of industry newsletters and magazines which basically regurgitate media releases.

With hundreds of agents having already departed the Helloworld ranks, the groups publicity-shyness is telling, particularly given that transparency of overrides and head of ce costs are some of the key factors being touted by competitors to attract new members.

After all the changes, goodness knows Helloworld needs some positive coverage, and having a more open policy would be a rst step otherwise theres constant speculation about whats being hidden.

However, this non-transparent policy may be changing, with an invitation now received to attend the Helloworld Frontliners conference in Adelaide next month. For Helloworlds sake we can only hope that this heralds a new era of openness for the company.

18

www.travelbulletin.com.au

Travel Bulletin is part of the Travel Daily family of publications

FEATURES27 Earlybirds

32 Adventure

38 Europe

46 Northern hemisphere ski

53 Careers

MONTHLY 02 State of the industry

06 Issues and trends

17 Travel management

21 Cruising report

24 Industry in focus

26 Brochures

58 The last word

COLUMNS02 Ian McMahon

06 Steve Jones

08 AFTA View

14 CATO View

23 CLIA View

EDITORIALManaging Editor Bruce [email protected]

Co-ordinating Editor Louise WallacePh: 02 8090 [email protected]

Editor at Large Ian McMahonPh: 03 9568 4464 or 0414 320 [email protected]

ADVERTISINGNational Sales ManagerLisa MarounPh: 0405 132 575 or 02 8007 [email protected]

Production Co-ordinatorSarah PiperPh: 1300 799 220 or 02 8007 [email protected]

www.travelbulletin.com.au

DESIGNWendy St [email protected]

FINANCEJenny [email protected]

4/41 Rawson Street Epping NSW 2121PO Box 1010 Epping NSW 1710 AustraliaTel: 1300 799 220 (+61 2 8007 6760)Fax: 1300 799 221 (+61 2 8007 6769)

Bruce Piper

STATE OF THE INDUSTRY

Ian McMahons perspective

DESPITE Barry Mayos trenchant criticisms of ATAS, it should have come as no real surprise when the TravelManagers chair-man ultimately decided his growing band of home-based travel agents would be better off joining the scheme (Travel Daily, 30 Sept).

Although some have gleefully character-ised this as a back ip, the fact is that Mayo has all along insisted: We want ATAS to succeed (travelBulletin, May).

While he continues to have deep res-ervations about the schemes lack of a mandatory client protection insurance requirement, Mayo believes it is better to sign up and work for change.

The old phrase about being inside the tent peeing out rather than outside peeing in springs to mind.

Mayos decision is a tribute to his maturity and his ability to argue a case rationally and without rancour a welcome change from the ego-driven petulance that has often in the past characterised internal travel indus-try debate and shattered industry unity.

Most importantly, Mayos decision to sign with ATAS is an emphatic endorsement of the relevance of a robust, voluntary, industry-run accreditation scheme in Australias newly deregulated travel agency environment.

Take a bow Jayson Westbury and your team at AFTA. The professionalism with which you lobbied state and federal

governments, your thorough going consul-tation with agents around Australia and your painstaking construction of ATAS have been instrumental in taking the travel industry into the 21st Century.

In the process you have greatly enhanced AFTAs reputation as a credible, effective industry body that has deservedlygained the ear of government. A stunning achievement.

As we consider the stature that AFTA has now attained and the bene ts this brings to its member agents, it is timely to rec-ognise the foundations laid by Westburys predecessor Mike Hatton.

Hatton was notable among the guests attending last months launch of the new travelBulletin and, as Westbury pointed out on the night, he continues to have strong views and to express them vigorousy.

Let us never forget that AFTA was on its last legs when Hatton took the reins in what was widely seen as a doomed bid to halt the federations galloping charge into oblivion.

Abandoned by almost all the major chains, and widely considered irrelevant, AFTA was expected to wither away.

But with tenacity and hard work Hatton slowly but surely rebuilt AFTAs fortunes and made possible what it has today been able to achieve. The industry owes him a huge debt of gratitude.

OUTBOUND MARKETTop 10 destinations, August 2014

INBOUND MARKETTop 10 sources, August 2014

Destination Trend Seasonally Original Trend Trend Adjusted Jul 14/ Aug 13/ Aug 14 Aug 14 000 000 000 % %Indonesia 94.1 95.5 101.0 +1.3 +17.5New Zealand 98.6 97.6 94.8 -0.2 -0.5USA 79.7 77.6 84.1 +0.5 -0.8UK 48.6 48.7 64.4 +2.2 +4.8Thailand 45.9 45.3 39.7 -2.8 -13.1Fiji 27.9 27.7 31.4 -0.5 -2.3Singapore 31.2 32.8 27.6 -0.1 +6.4China 32.7 31.8 26.0 -0.5 -0.9Italy 16.1 16.1 23.2 +1.7 +9.1Malaysia 24.1 23.5 19.8 -1.0 +4.0All outbound 768.5 767.0 766.8 +0.4 +4.4

Source: Australian Bureau of Statistics

Source Trend Seasonally Original Trend Trend Adjusted Jul 14/ Aug 13/ Aug 14 Aug 14 000 000 000 % %New Zealand 102.1 103.5 107.2 -0.4 +3.4China 74.0 76.5 73.3 +2.6 +17.7Japan 28.9 28.8 41.8 +1.0 +7.7USA 43.2 45.1 36.9 -1.0 +5.2UK 54.9 55.1 35.8 -0.1 +4.1Singapore 30.9 29.1 25.1 -0.8 +6.2Malaysia 27.9 24.0 23.9 -0.2 +18.3Hong Kong 17.2 17.5 18.0 -0.3 +8.9South Korea 16.5 17.1 16.5 +0.4 -2.6India 16.9 16.8 14.4 +0.5 +17.2All inbound 577.4 579.3 538.8 +0.2 +8.1

Source: Australian Bureau of Statistics

MAIN DOMESTIC ROUTESTop 10 domestic city pairs at July 2014

City pair Passengers Passengers % change YE Jul13 YE Jul 14 13/14

(000) (000)

Melbourne-Sydney 8,234.4 8,256.6 +0.3

Brisbane-Sydney 4,435.3 4,460.2 +0.6

Brisbane-Melbourne 3,170.0 3,284.9 +3.6

Gold Coast-Sydney 2,559.2 2,588.6 +1.2

Adelaide-Melbourne 2,136.2 2,239.7 +4.8

Melbourne-Perth 2,227.1 2,178.3 -2.2

Perth-Sydney 1,804.9 1,799.3 -0.3

Adelaide-Sydney 1,755.3 1,781.6 +1.5

Gold Coast-Melbourne 1,721.8 1,722.0 0.0

Hobart-Melbourne 1,356.4 1,392.3 +2.6

Source: BITRE

2 travelBulletin OCTOBER 2014

Gurney to Emirates roleIT would have been intriguing to see the response across the Helloworld network late last month when the groups former CEO, Rob Gurney, was named as the new Australasian head of Emirates.

The announcement came almost exactly six months since his shock resignation from Helloworld part way through its massive transformation from the former Jetset Travelworld Group, and just a week or so after the companys annual report revealed that he was still on the payroll and thus continuing to collect part of his sign-on bonus due to the exquisite timing of his resignation.

Gurneys return to a senior aviation role is not particularly surprising, given his 14 year career at Qantas where he departed in 2012 after a reshuf e displaced him from his former role as Group Executive Commercial and Freight.

Ironically, his new position with Emirates also sees him responsible for managing the carriers wide-ranging partnership with Qantas, where his extensive insider knowledge of the Australian carrier will no doubt stand him in good stead.

One also has to feel something for Bryan Banston, who has elected to leave the company and now could be seen as having kept the seat warm for Gurney after taking over the EK Australasia role just 12 months ago when his predecessor, Barry Brown, moved to Dubai to take up a more senior position with the carrier.

Given Gurneys wide experience of aviation, some have speculated that the Australasian role with Emirates may be a stepping stone to something bigger. When he left Helloworld in March, the company said he was departing to pursue a new opportunity with an international focus.

BUSINESS MONITOR

BETTER OFF INSIDE ATAS TENT

Departures on Time Arrivals on Time Cancellations No. % No. % No. %Jetstar 5601 82.3 5703 83.8 86 1.2Qantas 8359 87.0 8257 85.9 109 1.1QantasLink 8978 86.1 8685 83.3 203 1.9Tiger 1300 76.5 1256 73.9 20 1.2Virgin Australia 8828 80.4 8857 80.7 392 3.4All Airlines 40,277 84.2 39,711 83.0 854 1.8

ATAS partners with Travel Industry ExhibitionNEXT years Travel Industry Exhibition is set to offer a signi cantly expanded educational program, with the AFTA Travel Accreditation Scheme signing on as an of cial industry partner.

The show, which took place for the rst time this year at Sydneys Royal Hall of Industries, will relocate to Sydney Exhibition Centre @ Glebe Island, and once again will take place in the lead-up to the National Travel Industry Awards.

The 2015 Travel Industry Exhibition will also see a number of changes from this years event, including a re-timing to make attendance more convenient for agents.

The ATAS partnership will ensure we provide sessions that will really bene t visitors and exhibitors, according to exhibition director Pascal Ibrahim.

AFTA CEO Jayson Westbury said the show gives AFTA a tremendous opportunity to meet face to face with our travel agent community to inform, to support and to share ideas through the ATAS sessions.

Expedia to swallow WotifDESPITE initially expressing concerns about potential increases in commissions charged to accommodation providers, the Australian Competition and Consumer Commission (ACCC) has rolled over and con rmed that it will not block the proposed acquisition of Wotif.com by Expedia.

The ACCC said it now believes the rise of metasearch providers and other disruptive developments are expected to constrain Expedia in the future.

The decision follows an informal merger review by the ACCC, and has been met

KEY partners of travelBulletin gathered in Sydney last month to celebrate the magazines relaunch and thank founders Eddie Raggett and Ian McMahon for their massive contribution to the industry.

AFTA ceo Jayson Westbury hailed travelBulletin, which debuted a decade ago, as the Australian travel sectors most respected publication.

Eddie and Ians vision created a magazine with a reputation for accurate, honest reporting as well as incisive commentary and editorial, Westbury said.

Now part of the Travel Daily family,

travelBulletin is set to go from strength to strength, and publisher Bruce Piper thanked Raggett and McMahon for passing on the baton.

We look forward to continuing their legacy, he said.

The new and old travelBulletin team are pictured above, from left: Lisa Maroun, national sales manager; Sarah Piper, production coordinator; Louise Wallace, co-ordinating editor; founders Ian McMahon and Eddie Raggett; director Jenny Piper; columnist Steve Jones; and publisher Bruce Piper.

TRAVELBULLETIN FOUNDERS HONOURED

with outrage from hoteliers who have seen OTAs overseas demand as much as a quarter of the price of each booking. In contrast, the presence of Wotif.com which has itself jacked up its commission rate to 12% over the last two years is seen

as a moderating factor in the Australian market. The other major foreign player, Priceline-backed Booking.com, also charges

Continues over page

BUSINESS MONITOR

INTERNATIONAL AIR MARKET SHAREInternational passengers by major airline year ended July 2014

Qantas Airways, 16.3%

Emirates, 9.5%

Singapore Airlines,8.8%

Jetstar, 7.8%

Virgin Australia, 7.7%

Air New Zealand, 7.5%

Cathay Pacific Airways, 4.7%

Malaysia Airlines, 4.4%

AirAsia X, 4.3%

Thai Airways International, 2.8%

Others, 26.2%

Source: BITRE


DOMESTIC ON TIME PERFORMANCE August 2014

Source: BITRE


DOMESTIC AIR MARKET July 2014 Jul Jul Growth Yr to Yr to Growth 13 14 (%) Jul 13 Jul 14 (%)Total pax movements 5.12m 5.05m -1.4 57.32m 57.64m +0.6Revenue pax kms (RPK) 6.15bn 6.08bn -1.2 67.39bn 68.01bn +0.9Avail seat kms (ASK) 7.80bn 7.76bn -0.6 87.73bn 89.5bn +2.0Load factor (%) 78.8 78.3 -0.5* 76.8 76.0 -0.8*Aircraft trips (000) 56.6 56.1 -0.9 643.6 642.6 +0.1Source: BITRE * Percentage points

INTERNET AGENCY MARKET SHARES

Week ending 27/09/14 ranked by visits

Rank Company Market share Rank Rank W/E 27/09/14 W/E 30/08/14 W/E 02/08/14

11 Wotif.com 12.37 1 22 Webjet 9.86 2 13 Expedia 9.78 3 34 Flight Centre 7.23 4 45 Skyscanner 5.76 5 56 Lastminute.com.au 5.52 6 67 Luxuryescapes.com 4.69 * *8 au.edreams.com 2.75 7 79 STA Travel 1.59 10 810 FareCompare 1.39 9 10

* Not in top 10 Source: Experian Hitwise Australia www.hitwise.com.au

Airport Passengers Passengers % of % change YE Jul 13 YE Jul 14 total 14/13Sydney 12,680,584 13,240,492 40.7 +4.4Melbourne 7,059,143 7,741,870 23.8 +9.7Brisbane 4,543,367 4,838,151 14.9 +6.5Perth 3,775,454 4,083,439 12.5 +8.2Adelaide 725,965 929,369 2.9 +28.0Gold Coast 877,921 881,795 2.7 +0.4Cairns 516,738 467,737 1.4 -9.5Darwin 313,506 336,358 1.0 +7.3Norfolk Island 10,941 11,763 0.0 +7.5Sunshine Coast 6,502 8,504 0.0 +30.8

All Airports* 30,510,121 32,539,478 100.0 +6.7

AUSTRALIAN AIRPORTSInternational passenger through Australias

major international airports* July 2014

* 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

City pair Passengers Passengers % of % change YE Jul 13 YE Jul 14 total 13/14

Auckland-Sydney 1,405,426 1,459,653 4.5 +3.9Singapore-Sydney 1,350,359 1,368,929 4.2 +1.4Singapore-Melbourne 1,082,699 1,130,628 3.5 +4.4Singapore-Perth 999,712 1,063,217 3.3 +6.4Auckland-Melbourne 969,613 1,012,073 3.1 +4.4Hong Kong-Sydney 922,246 940,090 2.9 +1.9Kuala Lumpur Melbourne 669,203 912,549 2.8 +36.4Los Angeles-Sydney 890,217 896,795 2.8 +0.7Auckland-Brisbane 853,940 891,925 2.7 +4.4Denpasar Perth 849,768 837,916 2.6 -1.4Top 10 city pairs 9,993,183 10,513,775 32.3 +5.2Other city pairs 20,516,938 22,025,703 67.7 +7.4

ALL CITY PAIRS 30,510,121 32,539,478 100.0 +6.7Source: BITRE

INTERNATIONAL AIR Top 10 city pairs (at July 2014)



SWISS BLISS FOR TRAVELMANAGERS

his lot in with its parent rm Disruptive Investments in a merger deal which will see the Helloworld member become publicly listed (see page 8).

Record for Travellers ChoiceTRAVELLERS Choice member shareholders will share in a $1.62 million pre-tax operating pro t for 2013/14, with the record result up 33% on the previous nancial year.

The Travellers Choice board con rmed that 94% of the pro t will be returned directly to

members. Each will receive a 25c per share unfranked dividend, while the rest will be distributed via trading rebates based on sales support for airline and wholesale partners.Thats on top of override commissions earned at source by Travellers Choice members.

CEO Christian Hunter says the strong performance follows several years of working with member shareholders to reinforce the importance of preferred agreements, and providing them the the tools information and targeted strategies they need in order to optimse returns.

Continues from previous page

BUSINESS MONITOR

THESE TravelManagers agents donned traditional Swiss clothing on a recent famil, courtesy of Switzerland Tourism and SWISS.

Pictured from left: Birgit Weingartner, Nannette Gledhill, Karen Kuniyasu, Stephanie Fung, Peter Carmichael, Di Yates, Tanya Tyler, Debra Bean, Graciela Craig.

lower commission in Australia than in other markets.

Expedia is currently estimated to hold about 10% of the Australian hotel portal market. The addition of Wotif.com will boost this to 45%, while Priceline is believed to have approximately 40%, according to a coalition of accommodation groups.

The acquisition removes choice for accommodation providers between foreign and Australian operators and different commission models for selling their rooms online through third party websites, said Bradley Woods from the Australian Hotels Association.

Theres also signi cant concern about rate clauses being inserted into OTA contracts, which demand that hotels not be permitted to offer lower rates to consumers than they provide via the OTAs. The industry says it plans to take the matter further as it is clearly contrary to Australias competition and consumer law principles, Woods said.

Wotif shareholders rubber-stamped the Expedia takeover earlier this month following a unanimous recommendation by directors and an independent experts report into the deal which warned of considerable uncertainty facing the Wotif business.

As a side note, listed OTA minnow Check-in.com.au, has been making noise about being one of the only Australian-owned online accommodation providers left. This seems somewhat ingenuous given that Qantas-owned Hooroo.com.au has a signi cant market share not to mention Check-ins most recent accounts which showed that its TTV for 2013/14 was a tiny $375,000. However clearly Lenny Padowitz from BYOJet sees potential in Check-in, having thrown


HEADLINES SEPTEMBER01 Magellan profi t up 45%

02 Norwegian announces US$3.025 billion acquisition of Prestige Cruises International

03 Qantas to launch direct fl ights to Brisbane West Wellcamp Airport in Toowoomba

03 W hotel back in Australia

04 One voice for hotel sector

05 Haircut for Qantas execs

05 US fi rm buys Group Events

08 Emirates to buy Stella UK

09 Adventure World sold for a steal

10 Travellers Choice results

10 New Qantas reissue policy

11 Qantas to add more than 20 WestJet codeshare routes

11 AFTA targeting TCF funds

12 Jetstar Dreamliner to the USA

15 VA axes group commission

15 Virgin Atlantic appoints World Aviation

16 Qantas plans peak seasonal non-stops to Canada

17 Qantas announces codeshare on SriLankan Airlines fl ights to Colombo

17 South Africa defers kid policy

19 Flight Centre to add city concierge

19 Emirates releases 2015 early birds

22 Gate 1 Travel enters Australia

22 Qantas early birds to cover four continents

23 US metasearch concern

24 BYOJet to merge with Check-in

24 Rex trims NSW capacity

25 Velocity, KrisFlyer align

26 Walshe Group reports 2014 profi t

26 Singapore Airlines $10m price fi xing payout

26 Rob Gurney to replace Bryan Banston as head of Emirates in Australasia

29 P&O launches Flagship Club

30 TravelManagers into ATAS

30 Virgin Australia suspending Abu Dhabi


ATAC lifts its dividendTHE Australian Travel Agents Co-operative has agged further expansion across the country, with members voting to adopt the Co-operative National Law at their recent annual general meeting.

The AGM also saw the board announce an increase in the dividend payable to all shareholding members to 36%, in addition to quarterly air overrides and an annual preferred product trading bonus.

Other initiatives include the industry rst addition of a wholesaler insolvency inclusion to ATACs CHI and Aussietravelcover insurance policies.

ATAC has increased its membership by 17 new agencies this year.

Another listed travel groupTHE evolution of Western Australian mining rm Red Gum Resources into The Australian Travel Group is being keenly watched by the industry, with the company saying it expects to become a signi cant player in the leisure and tourism industry.

Agreements have been signed for the acquisition of WA travel businesses Holiday Planet, Asia Escape Holidays and Motive Travel, which combined will record $110 million in TTV for the 2015 calendar year.

The deals will be funded by a capital raising in which 15 million 20c shares will be issued, with a prospectus to be lodged shortly and plans for signi cant expansion of the business into Australias east coast.

Helloworld Experts in EverywhereHELLOWORLD CEO Elizabeth Gaines has laidout a bold vision for the agency group, declaring at this months Owner Managers Conference (OMC) in Los Angeles that Helloworld will become Australias leading travel organisation.

It was Gaines rst Helloworld conference since taking the reins as CEO earlier this year, and she con dently boasted that no other travel company in Australia offers helloworlds extensive value proposition, service, support and exibility.

Several initiatives were unveiled during the conference, including a new Experts in Everywhere tagline which will be rolled out across all of Helloworlds operations.

This is a powerful platform to help our agents shine. Its easily understood, it highlights our agents expertise and the research shows that it strikes the right chord with consumers, Gaines enthused.

Training is seen as key to ful lling this brand promise, with a new national hello You staff development program also launched at the OMC by Julie Primmer, helloworlds head of branded networks.

Available for the groups branded and associate members, hello You empowers customer-facing staff with the skills to positively in uence and engage, and create strengthened, long-lasting customer relationships, Primmer said.

Next years Helloworld OMC will take place in Wellington, New Zealand from 26-29 November.

ABOVE: At the Helloworld gala dinner in Los Angeles: David Padman, Helloworld; Neil Ager, Qantas; Julie Primmer, Helloworld; Rob Harrison, Qantas; Elizabeth Gaines, Helloworld ceo; and Steve Limbrick, Qantas.

Were all ears, so share your thoughts at [email protected]

Got something to say? Get all the travel news as it happens by signing up for a subscription at traveldaily.com.au.

ISSUES & TRENDS


LOVE him or loathe him, Richard Branson is hard to ignore.He is an inspirational gure to many, a publicity-hungry irritant to

some, and to others he is quite possibly both. Personally, I cant help liking the guy. And he has just ingratiated himself with of ce workers around the world by championing a new annual leave policy which allows staff to take as many days off as they wish.

Branson, as you may have read, has followed the lead of online streaming rm Net ix in adopting the policy at his Virgin head of ces in the US and UK. Not only that, staff dont even have to tell their managers before switching off the laptop, slapping an out of of ce on their email and heading off for a few days of R&R.

As long as they are up to date with every project and 100% certain it wont damage the business or their careers, they are free to come and go at will.

It is left to the employee alone to decide if and when he or she feels like taking a few hours, a day, a week or a month off, wrote the billionaire, who urged businesses to follow suit in a brainwave he reckoned will lead to increased productivity and a driven workforce.

What better way to make staff feel trusted, empowered and valued?

Working in a busy retail travel agency? Youve had a hectic week, you nally nailed that $10,000 booking so why not reward yourself with a few days unannounced leave? Never mind that your agency is already understaffed and there are 30 other itineraries youre frantically trying to sort out. Just take off, assuming, dont forget, that youre 100% certain youve nished your work and that your absence wont damage the business or your career.

And isnt this the critical point? The reason why, frankly, it is so unworkable. Its a lovely idea, but it sounds what it is hopelessly utopian.

When was the last time a travel consultant nished their work? Its a fanciful proposition, particularly in todays business environ-ment where companies are asking fewer members of staff to do the same amount of work. And even in the unlikely event of a consultant somehow reaching a natural break in their workload, who would be 100% certain their absence would not have a detri-mental effect on the business and their careers?

Far from empowering staff it could have the opposite effect. Take away the structure of annual leave, and staff with work piling around them could potentially take fewer days off.

Other news which grabbed my attention was the reappear-ance of former Helloworld chief executive Rob Gurney in a senior industry role, this time with Emirates. It provided proof, if any were needed, that is matters little how senior executives fare in their previous role, someone will always be willing to ignore the past and re-employ them on lavish wages.

JONES VIEW

THE REAL PRICE OF FREE TIME

Steve Jones

When was the last time a travel consultant nished their work?

NOT AN ALLIANCE, INSISTS ETIHADETIHAD Airways broke new ground earlier this month with the launch of a group called Etihad Airways Partners, saying the initiative will promote cooperation between airlines without the complexity and confusion of alliances.

Announcing the move, Etihad CEO James Hogan said the bene ts swing both ways for airlines and customers, with travellers to see more network choices and frequent yer bene ts, while airlines will share in strong commercial partnerships and ef ciencies.

At rst glance, the partnership looks much like an airline alliance, but Etihad stressed that it sits apart from groups such as Skyteam, Star Alliance and oneworld. It would be wrong to describe Etihad Airways Partners as similar to the traditional alliances, he said.

We are a grouping of like-minded airlines working together to improve our competitive offer against those alliances and the major legacy carriers... the depth of our relationships allow us to go further than the long-established global alliances, from greater network alignment which maximises ight connectivity, to shared centres of excellence in cabin interior design, catering, IFE and customer service.

Initially six carriers are part of the initiative all of them existing equity partners of Etihad including airberlin, Air Serbia, Air Seychelles, Jet Airways and Darwin Airline as well as EY itself. Other airlines are welcome to join even if they are part of an existing alliance, the airline said. The initial Etihad Airways Partners members are unaligned, apart from airberlin which is in oneworld.

Etihad has long turned its back on alliances, and Hogan has been outspoken on the fact that the airline doesnt want to be tied to a single group. He has also, in the past, branded alliances as fractured, instead favouring partnerships and equity investments.

He says the initiative will be more transparent for consumers by removing complexity and confusion and offering bene ts such as standardised mileage and tier bene ts across all partners, in addition to no blackout periods and priority services.

The question now remains who will join the ranks? Virgin Australia, in which Etihad holds a 22% stake (and where

James Hogan is now a board member) told travelBulletin it has no plans to join at this stage, citing its already strong alliance partnership with the airline. Star Alliance, Skyteam and oneworld will be battening down the hatches to keep their members in - but the Etihad Airways Partners initiative may provide a framework for increased cooperation with EY which already has 18 codeshare arrangements with other carriers.

MEMBER

ISSUES & TRENDS


I AM writing this months AFTA view on board a Trafalgar Coach headed north along highway 101 from Santa Barbara to Monterey, California with a pit stop planned at Hearst Castle and as some-one who has never been on a coach tour before, I have to say this is a great experience.

Taking a coach tour would not perhaps have been my number one thing to do, but having experienced all there is to offer in this type of travel, I am a convert. Trafalgar have this down to a ne art and, I should say, I am their guest on this trip. The other rst for me is to be experiencing a familiarisation trip with a group of helloworld travel agents (they will all remain anonymous), and for someone that has been doing this job for seven years, its a surprising and pleasant adventure.

As the industry embraces the change to deregulation and ATAS starts to have the desired impact with consumers, it is very pleasing to hear positive feedback about the Pack Some Peace of Mind campaign that continues to be rolled out by the state consumer affairs agencies.

The radio campaign will reach some 9.5 million listeners over two months and this will set us on the right path as governments explain the move from licensed to accredited travel agents.

The message that has been devel-oped by government agencies does include a reference to using a credit card as a protection method for consum-ers. That is a simple fact that everyone has rights to access, and this is why the government agencies make this point.

As the industry changes, so too will be the way travel agents need to consider their own protections via the various commer-cial solutions that have been deployed into the industry. These include insurance, trust accounts, e-payment methods and other consumer policies. The whole idea of a deregulated envi-ronment is to allow companies to nd solutions that best meet their needs. Following on from the Pack Some Peace of Mind campaign, starting in November will be the ATAS campaign that will build on the work already done. It will further bring to life the message to consumers that accredited travel agents are there best choice when booking travel.

We will also be running print advertisements in a range of outlets,but most importantly we will be using very sophisticated penetra-tion methods to in ltrate the consumers mind on the internet when they are researching travel. ATAS is a supporting brand for every participant and what is most important is that we do this across the industry.

By the way, we are now looking at some 2500 locations and this continues to grow every day. I am also very pleased to report that the satisfaction rating ATAS is receiving as travel agents go through the process is at 98%. So it does seem that ATAS is on track and the industry has embraced the change.

AFTA VIEW

INDUSTRY WARMS TO ATAS

Jayson Westbury, chief executive AFTA

BYOJET & CHECK-INBYOJET is con dent its merger with Disruptive Investment Group (DVI) will allow the company to reach new heights, regardless of the bottom line gures.

The deal, announced last month, will see DVIs online travel assets including Check-in.com.au combined with BYOJet, which is a helloworld af liate. BYOJet chief Lenny Padowitz has built the business out of a small travel agency in Loganholme, Queensland which he purchased just four years ago.

Padowitz will become a signi cant shareholder in the publicly listed DVI, which will invest up to $1.5 million cash in BYOJets parent rm.

DVI chairman Adir Shiffman said the deal proved Australian owned travel businesses could thrive in Australia, while Padowitz said it would strengthen the travel proposition of both businesses.

But after a quick look at the books, the deal is a somewhat surprising move for BYOjet considering Check-ins most recent accounts show that its TTV for 2013/14 was a mere $375,000. By comparison BYOjet is more than 220 times Check-ins size, with $82.7 million in TTV over the same period. BYOJets EBITDA amounted to $274,000, while Check-in lost more than $1 million last year.

But regardless of the gures, Padowitz sees potential, describing the deal as a perfect synergy for both companies.

It ful ls a big step thats required for us to serve our clients, he told travelBulletin, adding that being publicly listed will allow BYOjet to see where it can take things.

When I started the company I was 100% focused on ights, but were now looking at other areas and have started to integrate hotels to our website so we can offer a solid hotel offering. Being listed on the stock exchange has also been a long term goal.

Padowitz was con dent the merger would allow BYOjet to improve its client offering, and agged plans to further diversify as it focuses on delivering a complete service to clients. He remained tight lipped on details, insisting the plan was part of a strategic discussion.

Technology is central to the plan as Padowitz prepares to launch the latest version of the white-label technology platform JETMAX at the TRAVELtech conference later this month. The platform combines search engines with administrative control, full back of ce accessibility, 24 hour customer support and ongoing training.

The technology will continue to be a key focus for BYOjet as the company looks to improve access and distribution for clients.

My vision has always been to build online technology and provide agents with the ability to go online for minimal cost. We have been re ning the technology, and the deal with DVI will now allow us to provide our clients with the best possible service, he said.

The radio campaign will reach some 9.6 million listeners over two months

ISSUES & TRENDS


Offering a small group tour with 40 or more passengers is making false promises...Dennis Bunnik, managing director

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BUNNIK NOT PHASED BY COMPETITIONBUNNIK Tours managing director Dennis Bunnik has insisted hes unphased by his competitors, just weeks after launching a brochure to expose their approach to small group touring.

Speaking with travelBulletin, Bunnik voiced his frustrations with the small group touring market, claiming that some operators are deceiving customers by offering small groups with up to 40 passengers.

Frankly, its ridiculous and lling customers with contempt. Offering a small group tour with 40 or more passengers is making false promises which dont stack up, he said.

His comments follow a unique move last month in which Bunnik Tours capped its tours to 20 passengers and launched a brochure listing the maximum passenger numbers for its key competitors.

Outlined in its latest Europe program, the chart includes details on passenger sizes, topped by Bunniks 20 passenger max and followed by Scenic Tours 40 pax limit. Also listed is APTs 40 pax, Globuss 44 traveller maximum and Insights 38 limit. The chart also outlines whether companies are Australian-owned and the star rating of accommodation provided.

VisitFlanders ramps up WWI promotionTHE appointment of The Walshe Group to represent the Belgian region of Flanders earlier this year is recognition of a key opportunity for Australian travel agents to capitalise on World War I tourism, according to Lea Winkler from VisitFlanders, who was in Australia late last month.

Winkler told travelBulletin that millions of euros are being invested in projects across the region, which was the site of many signi cant battles during the Great War. Developments will see tourism infrastructure upgraded, with the creation of ve gateways to the World War I experience.

There will also be a series of major events and exhibitions over the next four years to commemorate the centenary of the 1914-1918 war to end all wars. Flanders was part of the Western Front a hopeless trench war with countless victims which continued for four years.

Markets being targeted include nations which fought in the region during the war, with visitors from the UK, Ireland, US, Canada, India and even China being courted alongside Australians and New Zealanders.

There are more than 600,000 victims of the con ict buried on Belgian soil, Winkler said. VisitFlanders research has shown that 44% of Australian travellers are open to including so-called remembrance tourism as part of their trips.

FEBRUARY 2014

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Bunnik told travelBulletin that the move aimed to provide transparency to customers and live up to the promise of small group touring. He denied it was to fend

off the competition, instead insisting it was in the customers best interests.

We dont care what our competitors are doing and were happy for people to travel with them, but we are cutting through the marketing hype to give customers a clear idea of what theyre actually paying for, Bunnik said. Group sizes have been the dirty little secret of the industry and what were saying is that were transparent and upfront.

Globus national marketing manager Australia Adam Mussolum said small group travelling was a highly competitive arena and operators, such as Bunnik Tours, were under pressure to nd new ways to promote themselves. But he refuted claims that tours of up to 40 passengers were deceiving customers. Its a lot more fun travelling in a larger, diverse group. Its also important to recognise that greater economies of scale provide excellent savings to the consumer, Mussolum said.

Meanwhile, Bunnik Tours has launched its 2015/16 Africa brochure featuring three new itineraries, two new independent tours and more tour extensions. Destinations include Uganda, Rwanda, Morocco and Kenya, and South Africa and Botswana.

ISSUES & TRENDS

STAR POWER FOR QF AS A380 FLIES TO DFWQANTAS is now proudly ying the worlds largest aircraft on the worlds longest route, after debuting its agship A380 aircraft between Sydney and Dallas Fort Worth earlier this month.

The landmark service, ying six times per week, makes connections between the cities signi cantly better than with the former 747 operation, which was forced to stop over in Brisbane on the return leg.

Qantas launched Dallas ights in 2011, with the route providing excellent connectivity to other destinations across the USA because DFW is the biggest hub for QFs oneworld partner American Airlines.

Switching to the A380 has boosted QFs capacity by about 10% on the route although on the return leg as many as 80 seats are blocked off in economy class to ensure the plane has enough range.

Qantas says the new superjumbo service is the result of several scheduling changes designed to unlock more ying time for its eet including the retiming of its Melbourne-Dubai ights.

Operating the A380 to Dallas has also seen the introduction of First Class on the route for the rst time.

The inaugural service was greeted by Qantas ambassador and keen aviator John Travolta, who was replete in his carefully tailored Qantas captains uniform. He told travelBulletin he was thrilled to welcome the A380, with Qantas the rst superjumbo operator into DFW followed two days later by Emirates which now operates daily A380 ights between Dubai and Dallas.

The non-stop ight time from Sydney to DFW is 14 hours and 50 minutes, while the longer return service takes about 15 and a half hours to travel the 13,805km sector.

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Hollywood superstar John Travolta and travelBulletin publisher Bruce Piper give the thumbs up to the new Qantas A380 non-stop services between Sydney and Dallas Fort Worth.


ISSUES & TRENDS

COMMUNIQU FROM KAREN CHRISTENSENGeneral Manager & Director

Sales/Marketing, Australasia

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Departing from April to May 2015, 10-day all-inclusive Kimberley expeditions from au$10,950 per person, including a scenic flight over the Bungle Bungle range.

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HAWAII LOOKS BEYOND USAHAWAII Tourism is appealing to the trade to boost its international grasp and achieve the ambitious target of 400,000 Australian travellers next year.

Hawaii Tourism has reported ongoing success in the domestic market, with local sales including the US comprising about 60% of annual bookings. But while the domestic market continues to perform, Hawaii Tourism president and chief executive Mike McCartney said the tourism authority has its sights on bigger targets.

We are very dependent on the US and we need to grow our international markets if we want to succeed, he told a media conference last month. But that requires more than just money. We need to build awareness of Hawaii as an international holiday destination if we want to grow.

Diversity was a common theme in McCartneys speech as he reiterated the need to improve on the current state of play, as was the need to re-position Hawaii as a global destination.

We want to grow, we need to, but to do that we need to show how versatile we are. We have a lot more to offer than most people think, he said.

Visitor spend topped $10 billion from January to August 2014, while total arrivals also hit 5.5 million on the back of 22%

growth in air traf c from Asia and 6.8% growth from Europe.

Oceania air traf c also saw a 5.4% increase on the same time last year, while daily average spend jumped 2.5% to $195 per person in the rst eight months of 2014.

McCartney described the gures as pleasing, but said Hawaii Tourisms long term focus needed more attention to combat challenges such as decreasing discretionary spend and increasing costs of a Hawaiian holiday. More work was also needed to fend off erce competition from Fiji, Bali and Thailand, he added.

We need the trades help, he told travelBulletin after the event. Around 60% of Hawaiian holidays are booked through an agent, so the trade remains absolutely key for us and we will continue to launch discounts and incentives to keep them onboard.

McCartney pointed to Australia as a key growth market for Hawaii, and voiced hopes of boosting annual visitor numbers from 350,000 Australians to 400,000 next year.

Australia has more potential for Hawaii, but we must really engage with the trade to attract more visitors. We know 400,000 visitors is an ambitious target and we will have to work extremely hard to make it happen. We cant take Australia for granted, he said.

Avis Budget Group rolls out 2015 line upAVIS Car Rental is expanding its rental eet with the addition of tens of thousands of new vehicles to improve the customer experience. A range of new SUVs have been added to the eet along with luxury vehicles such as the re-designed Cadillac Escalade.

Sister brand Budget Car Rental, meanwhile, has rolled out a number of new hybrid vehicles to improve its value proposition to clients. The latest Ford Expedition and Ford Mustang have been con rmed for 2015, in addition to the Toyota Sienna and Kia Sedona for families or small groups.

From left: Mike McCartney, Janaya Birse, Ashlee Galea, Holly Ballard, Vanessa Commander, Mike Story.

ISSUES & TRENDS

THE Council of Australian Tour Operators (CATO) recently held its annual Brisbane meeting, with AFTAs new national manager of strategy and policy Dean Long as a special guest speaker.

It was pleasing to note that at the time of the meeting in excess of 75% of CATO full members had already taken up member-ship to ATFAs travel accreditation scheme (ATAS), with the deadline for other members to join being extended to 31 December, 2014.

The meeting was an open forum allowing members todiscuss topical issues and areas of concern. There was a robustdiscussion on ATAS and in particular the value of the optional travel insurance schemes.

The main concerns from members were that the premiums being offered vary greatly on turnover and destinations covered, and in most cases the end cost is too high to make it commerciallyviable to consider. It was generally agreed that insurance and a more effective form of nancial cover for both members and consumers was an area that needed attention.

In response, Dean Long reminded members that ATAS is an accreditation program, not an insurance product or compensation scheme. The recent advertising campaign is also high-lighting this fact and focusing on informingconsumers of their rights and risks when booking travel.

AFTA has also received very positivefeedback from those who have signed up to ATAS with 93% of participants reportingthey would recommend other businesses to join the scheme. Members also voiced concerns on the rise of the online travel agent (OTA) sector and continual erosion of wholesale and retail businesses.

Chairman Rod Eather pointed out that OTAs are not responsible for growing the market, but rather, shifting it to an online environ-ment. For instance, a number of OTAs that began offering direct sales to clients only are now offering commission to travel agents to secure their business as well.

This has the effect of closing the gap on prices, howeverthose at the meeting agreed that OTAs offer little service or know-ledge, and mainly depend on their clients contacting wholesalers or travel agents for details before searching for a cheaper price online. They also offer little, if any, promotion on destinations, hotels, tours etc, with the emphasis being on availability and pricing, and encouraging travellers to book via their site.

One member reported that hoteliers were now protesting against the OTAs constant demands for lower rates and lack of commitment to selling their products, meaning a greater shift towards support for wholesalers and agents. A number of ideas to combat losses to OTAs were suggested and it was proposed that members who could contribute should contact the chairman via email at [email protected].

The next CATO meeting will be held in Sydney on 26 November. Please register your interest via email at [email protected].

CATO VIEW

MEMBERS VOICE CONCERNS

Peter Baily, general manager, CATO

OMAN HOTEL BOOST

ATAS is an accreditation program, not an insurance product...


OMAN Tourism has welcomed the Ministry of Tourisms decision to ramp up its hotel offering as ever-increasing demand poses questions over supply.

The Oman Ministry of Tourism has approved the development of 54 hotel facilities which will add more than 2900 rooms to the Sultanate. Complementing the existing 282 facilities, most hotels will be one and two-star properties, with 14 to be located in the capital of Muscat.

Speaking with travelBulletin, Oman tourism manager Australia & New Zealand Mona Tannous described hotel supply as a challenge for Omans tourism sector, noting that visitor numbers have seen steady and controlled growth in recent years.

But she remained unconcerned about the longer term effects, noting that developments in the pipeline would curb supply issues.

Hotel rooms have been a challenge [but] thats understandable as development of tourism in Oman only really commenced in the last 20 years, she said.

Hotel supply has been a key focus for the Oman Ministry of Tourism as visitor numbers continue to gain momentum. Visitor numbers grew 7.8% to 2.1 million last year, while the number of hotel rooms increased 12% to 22,521 rooms. Australians made a strong contribution to the growth, with visitor numbers up 71% since 2011 and 15% this year alone.

Three ve-star properties have opened their doors in Oman this year, including Salalah Rotana Beach Resort, Alila Jabal Akhdar and Hormuz Grand, but the government has now turned its focus to the more affordable properties.

As Tannous explained, the move is a much needed change: There has been a greater need to accommodate the mid range visitor to the Sultanate rather than focusing on the high end luxury market, she said. While new luxury hotels are needed, the need to cater for the changing style of traveller has become more apparent and a wider focus has been given to the 2-3 star hotel options.

The government is aware of the trend and has its sights on ambitious tourism targets as it looks to boost visitor numbers and reduce its reliance on oil revenues. Oil dominates Omans GDP with 72% of the governments revenue compared to just 6.4% for tourism. But that gure is expected to reach 8.2% by 2024 if the government achieves its target of 12 million visitors by 2020 a 10 million increase in just six years.

The Oman government has committed $14.7 million to tourism-related projects from 2011-2015 and has invested in a new passenger terminal at the Muscat International Airport. Construction is also underway for a new convention centre and more hotels are yet to come.

Salalah Rotana

ISSUES & TRENDS

AIR SERBIA APPOINTS AVIATION ONLINE

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The Avis Service Promise.A family returned their rental but had 4 hoursto wait for their flight. Karlyn suggested a visitto the lagoon to fill in the time, and offered to hold their luggage plus provide a beach towel for their son. When they returned, he looked like he would sleep the whole flight home, much to the relief of his parents.

Experience it for yourself.

FORMERLY known as JAT Airways, Air Serbia (JU) now has representation in the Australasian market, with the appointment of Aviation Online as its local GSA.

Aviation Online is owned by the Cassar family which also runs the Breakaway Travel Industry Club, with the companys GSA operation currently also representing Brussels Airlines, Air Malta and Alitalia.

The Air Serbia division is headed up by former Qantas and Virgin Australia executive Stevan Sipka pictured with a collectors edition A320 aircraft in the brand new Air Serbia livery.

Air Serbia was reborn in late 2013 after the Serbian government signed an agreement with Etihad Airways, which holds 49% of the carrier.

Air Serbia codeshares on Etihad services from Australia, with extensive connections through to Belgrade and then onto a network of about 12 destinations across Europe.

Sipka told travelBulletin he was excited about the opportunities for the brand in Australia. With an estimated 20,000 people of Serbian descent living in Australia, theres signi cant potential for VFR traf c, as well as an untapped leisure market wanting easy access to Belgrade and Eastern Europe, he said.

As well as boosting sales, other issues on Sipkas plate include aviation bilaterals. Serbia has been designated as the successor to the former Yugoslavia in a number of existing air services agreements following the break-up of the Balkans, but theres currently some work to be done to clarify the arrangements.

Air Serbia operates a two-class product, with the business class

offering similar hardware to Etihads short-haul offering. The carriers crew also undergo Etihad service training.

However, despite the close relationship between the carriers, in Australasia Air Serbia is operating completely independently under its newly appointed GSA arrangement.

Stevan Sipka

ISSUES & TRENDS


AAT Kings new branding

IF frequent yer points could be traded for cash, Anthony Hayes would be sitting pretty. After a 16 year career with Qantas and seven year stint with Queensland Tourism, hes literally been around the world on the job. But hes since traded in the air miles for coach travel in the role as managing director of AAT Kings.

Speaking with travelBulletin last month, Hayes admitted that the transition has had its challenges namely turning the company around and ditching its rusty branding which was losing touch with the Australian market.

Stepping into a role which had been left vacant for six months, he admitted the AAT Kings brand was down on its luck and it was a struggle to bring it back from the brink.

We were way behind in terms of sales, we had let our partnerships slide and we werent engaging with agents or consumers,he recalled. To be honest, we were really doing it tough.

But Hayes didnt waste time getting his hands dirty and within six months launched an aggressive strategy to re-position the brand to the market. Going further than new uniforms and a jazzy tagline, he completely overhauled the brand, ditched its long term strategy, and re-positioned the company to closer align with the real coach touring market.

We had been trying to position ourselves as being stylish and sophisticated, but thats not what were about, he said. Coach tours arent for the luxury market its not rocket science.

With the hope of positioning the company as the perfect clich of a genuine Aussie holiday, Hayes also rolled out a new

brochure with a strong focus on its staff. After a long consultation process with agents, AAT Kings also added food and wine productto the books, launched new product in Western Australia and Tasmania, rolled out some new cruising product and packaged everything to make it easier for agents to sell.

It also bid farewell to the 10 bottom performers as part of a erce strategy to re-build the product.

Twelve months on from the re-brand, Hayes said the changes were breathing life into the once-tired brand, with guided holiday sales up 25% and short breaks up 45% on last year.

The gures are impressive, but Hayes said the turnaround didnt come easy. We had a dramatic drop off in sales after 2010, and we had to say goodbye to a lot of good people to turn things around, he said. The economy and low consumer con dence were brutal for us and we really struggled to convince people to take holidays at home.

Hayes admitted the company was ruth-less in its approach but said there was no

alternative: We had to put the business back together in the right way and make some hard decisions to reduce overheads.

With several million dollars returning to the companys bottom line over the past 18 months, Hayes is convinced the worst is behind the company.

But mindful of the past, hes been quick to implement change. AAT Kings this year launched a more aggressive earlybirds campaign and stepped up its marketing focus on the domestic market to re-engage with Australian travellers.

The company is also heavily investing in its agent partnerships with new incentives and initiatives to help agents sell.

Looking forward, Hayes expects the soften-ing Aussie dollar will allow the company to reclaim its 2010 position when it was making some real money.

Weve had some ups and downs over the past 18 months, but were nally in the right place and on the road to recovery, he said.

AAT KINGS ON THE ROAD TO RECOVERYWe had to put the business back together in the right way and make some hard decisions to reduce overheads Anthony Haynes, AAT Kings managing director


By Peter Watson

OVER previous articles we have talked about the importance of choosing the network that will best deliver what you need to successfully run your own

travel business. We have also discussed what is on offer from those networks and what you need to consider when making a decision about which network to join.

Now I want to talk about the importance of developing your own personal brand, what that brand means and how you can best maintain the value of that brand.

Why? Because it does not matter what sort of travel business you are in, be it a national franchise, an af liate, an associate, or an independent. Ultimately, the brand and the brand image that you present to the world is vital to your success.

There is no doubt that the competition for the travel dollar is erce, and it will only get more so over time. So the question remains, how do you stand out from the crowd and create an image that will make people take notice of you?

First of all, its worth de ning what branding is. Branding is the process of creating a unique name and image for a product or a service in the consumers mind. It aims to

establish a signi cant and differentiated presence in the market usually via advertising and promotion that ultimately attracts and retains customers.

A personal brand, meanwhile, is in many ways an extension of your reputation. It refers to the way other people see you as a business owner or representative of an idea or organisation. When you have a strong personal brand, people recognize your name and are interested in what you have to offer. But more importantly, they understand what youre all about.

One of the key challenges of personal branding is guring out where to start. I suggest that you rst consider what you stand for in business, what values you want your personal brand to have, and what those values mean to you and your customer. Values are the easiest thing for people to identify with, and also the most important place to start.

Your personal brand is a result of the thoughts and words of other people, and of course, its shaped by how you present yourself publicly. Its also something that you have complete control of, so you can decide how you would like people to see you and work on becoming that image.

The next step is to market your personality. In essence, personal branding

Peter Watson has spent over 50 years in the travel industry in sales, marketing and distribution. He has helped to build franchise networks with national and international brands and has developed small agency groups and businesses. He now operates as a management consultant, travel writer, teacher and mentor.

is really selling yourself. You need to think about how you act and have a clearly identi able personality so that people feel like they know you even if they dont.

Your style of delivery should also be as unique and individual as any other aspect of your personal brand. This doesnt mean you need to sit down for weeks on end brainstorming how to be different. For most people, it will happen quite naturally.

A strong personal brand is an essential element of a strong business it helps you to stand out in a crowded market place. Start the process by laying out your core values, and build your brand from there.

Next time well take a look at the next steps in the process so you can start working on your business.

CRAFTING A PERSONAL BRANDPERSONAL BRAND

TRAVELMANAGEMENT


COVER STORY

THE RAMIFICATIONSOF REFORM

COVER STORY


By Louise Wallace

THIS years massive industry reforms championed by AFTA chief executive Jayson Westbury have revolutionised regulation in the Australian travel sector.

Compulsory licensing and the Travel Compensation Fund (TCF), in place for almost three decades, have been swept away to be replaced by a new era including the voluntary AFTA Travel Accreditation Scheme (ATAS) on 1 July. Agents no longer need a licence to trade and ATAS now stands in place as an industry-led mark of quality and professionalism.

However as history shows, revolutions dont come easy. The transition was a long time coming, with the changes aiming to level the playing eld for Australian businesses and cut red tape but some warned of side effects including a loss of consumer con dence, as well as a potential in ux of new competitors. Four months into the new regime, the catastrophic effects predicted by some naysayers have not materialised. However some argue that the reforms have lowered the bar and potentially opened the oodgates for fraudulent behaviour.

Consolidation services provider CVFR Travel Group managing director Ram Chhabra is among them, arguing that lowering entry barriers has caused a huge in ux of new entrants keen to put their foot in the door. But rather than rubbing his hands together at the new business, he says the changes have led to an emergence of newcomers who step into the industry and pull out after a few weeks once they realise its hard work.

With no form of licensing or cost to start a travel agency, theres no system in place to stop any old Joe from becoming an agent, he says.

The chances of fraud are now very high theres nothing stopping y-by-nighters from entering the industry and taking off with peoples money.

The trend is also causing a headache for staff who are being inundated with questions from new entrants who dont have a clue about how the industry works. Weve basically become a help line... They are clogging up the system, wasting time and

slowing down the process for everyone else, Chhabra says.

CVFR has responded by amending its systems and imposing restrictions which require new entrants to pre-pay for tickets rather than receiving credit up front as in the past. CVFR hasnt actioned many applications because of the large number of new entrants, but if they can front up the cash, theyve got the green light to sell.

CVFR isnt alone, with Orient Express Travel Group also reporting an upswing in inquiries across its Independent Travel Group and Select Travel Group brands since 1 July. Speaking with travelBulletin, chief executive Tom Manwaring said hes elded inquiries from video and sh and chip shop owners hoping to make some cash on the side. But like CVFR, he says the quality is a far cry from the TCF- or IATA-approved agents of the past. These people are genuinely interested in giving it a go, but they are clueless about the travel industry. They just look at the volume that agents turn over and are blinded by the lights, thinking they will take home all of the money, he says.

Describing the current state of play as a transition for the industry, Manwaring says OETG has become a gatekeeper for people who want credit facilities. We have become more vigilant with our benchmarks and we only do business with ATAS members who are also backed by a GDS. The last thing anyone wants is an explosion of unquali ed retailers, so were doing our bit, he says.

Air Tickets general manager Russell

Carstensen also reports being inundated with accounts from new agents, but expects the trend to slow once they realise its hard to break into the profession. Speaking with travelBulletin, he described the prospect of fraud as a genuine concern, conceding that the industry has a role to play in creating barriers for entry: As long as GDSs dont hand out access to everybody and consolidators play the game properly, there will be suf cient restriction of access to content to stand as an appropriate barrier of entry.

Anticipating how deregulation will play out is a challenge only four months into the game, but AFTA chief executive Jayson Westbury is con dent the transition will blow over and not much will change for consolidators. Certainly, this has been the case for Consolidated Travel, with the company reporting no change in new entrant movement at all. The same goes for travel companies such as Globus and Carnival which have reported no increase in enquiries from new agents since 1 July.

This comes as no surprise to Westbury, who says claims of a proliferation of new agents doesnt stack up with the gures at hand. With around 50 agencies opening their doors every year and the same number closing up he says new entrants will inevitably emerge. And indeed they are, with travel companies such as US-based Gate 1 Travel opening branches in Australia since licensing was removed. But with only 20 new entrants applying for ATAS accreditation since 1 July of which only six have been approved Westbury branded claims of an in ux of agents as alarmist and nave.

Sure, we may see a few more agencies open, but I just dont see any truth behind this idea of a proliferation of new agents. These consolidators should name names and quantify how many agents are approaching them, otherwise Id say theyre just trying to alarm the industry and steal headlines, he says.

Westbury admits anything is possible in a deregulated environment, but says its up to consolidators to implement controls to prevent problem agents from trickling through

The chances of fraud are now very high theres nothing stopping y-by-nighters from entering the industry and taking off with peoples moneyRam Chhabra, managing director CVFR Travel Group

Continues over page


COVER STORY

the system. If theyre concerned that doesnt go far enough, he says they should lean on ATAS as a mandatory requirement, much like Carnival has done. Thats the whole idea [of ATAS] were trying to weed out the dodgies and have a conversation with consumers about the bene ts of working with ATAS accredited agents, he says.

When asked about the prospect of fraud in a deregulated environment, Westbury was unconcerned, insisting that the commercial reality of setting up an agency is enough to deter the dodgies. The reality of setting up an agency is a far greater barrier of entry than licensing ever was. If anything, deregulation is a gift to home based networks, he says.

Westbury hasnt wavered in his support for deregulation, but the perceived lack of consumer protection in contrast to the TCF has worried some who fear consumers will lose out in the end. TravelManagers chairman Barry Mayo has been outspoken on the topic and warns that deregulation will increase the risk of agency collapse and tarnish the name of travel agencies. Losses and inconvenience are going to increase with the likelihood that a few rogue travel intermediaries will damage the travel agent industrys integrity and result in a loss of consumer con dence he says.

Its early days, but there have already been some failures since the TCF was taken out of the equation. Customers were left out of pocket when NSW agency All Travel collapsed in June, when Australian Specialty Tours went down in August -- and again when travel scam

Continues from previous pageThe reality of setting up an agency is a far

greater barrier of entry than licensing ever was. If anything, deregulation

is a gift to home based networks

Jayson Westbury, chief executive AFTA

Bali Indulgence (not, it should be noted, ever part of the TCF or licensing regime) duped customers the same month. And according to TCF chief executive Glen Wells, there will be more to come. There has been a marked increase in the number of scams since licensing was removed were talking one every few weeks and there will be others, he says.

He told travelBulletin its hard to gauge the effects of deregulation at this stage, but his claim is that consumers will lose out. The new system is ne if you pay by credit card, but the reality is that many customers dont. The TCF provided strong supervision for the industry sure it wasnt perfect, but it did provide certainty for customers, he says. Without the TCF, consumer protection no longer exists unless agents take out insolvency insurance.

Sounds achievable in theory, but it appears that for some, the insurance options are pricy. Chimu Adventures director Chad Carey revealed that the annual cost of insurance is around $70,000 for his agency, and while that gure varies depending on the business, he says several other wholesalers have reported similar quotes. We no longer have consumer protection unless we pay for it. It was our greatest selling point over overseas operators, and now we dont have that, he says. Independent agencies cant cough up the kind of money insurance providers are asking, and while no one predicted insurance would cost this much, AFTA has their head in the sand if they think ATAS will stand in the TCFs place. Instead, he suggests a voluntary scheme like the TCF where companies make a smaller contribution to fund agency collapse would provide the public with some reassurance.

Westbury admits that deregulation is an unknown for the industry, but hes convinced it is the only way forward. The TCF had to go, lets face it. Why use a half-baked, semi government, funded by a competitor credit management control system? Thats not fair and its just not commercial, he says. At the end of the day, the good will succeed. Thats why the accreditation scheme was developed so that those who want to act in a professional way will stand out from the crowd.

For now, AFTA is turning its focus to consumer education about the bene ts of ATAS accreditation, while millions of dollars are being spent by consumer affairs authorities across the country on the Pack some Peace of Mind campaign. We are investing heavily to educate consumers of the bene ts of working with ATAS accredited agents. It will take time, but its a process and consumers will catch on, Westbury said.


ARIA & EDEN TO REVOLUTIONISE P&OBy Matt Lennon

IN a little over a year from now, P&O Cruises will parade ve ships into Sydney Harbour in a massively orchestrated display introducing its two newest ships to the travelling public. The event is sure to be a lock on the calendars of cruise a cionados and nationwide media outlets, with plenty of attention being showered on a new look, both inside and out, for the endearing home-grown line.

By that time, P&O will be proudly sporting a starkly different onboard offering far removed from what cruisers have come to know now and in the recent past. It will be celebrated and pushed as the central focus of perhaps the greatest sweep of changes for a modern cruise line in recent memory.

The two newest members of the line will have the badge Paci c Eden and Paci c Aria painted on the side of the navy blue hull, the rst of many forthcoming changes. Sisters Paci c Jewel, Paci c Pearl and Paci c Dawn will each be bestowed with an elegant navy blue stripe attributing them to the P&O brand. While the changes to the ship exteriors end there, onboard is where the real revolution is taking place.

By far the most transformational change is the entire removal of the factory-line shuf ing buffet dining concept that is synonymous with cruising. It is a bold move for P&O and one with very little precedent.

We set ourselves a challenge to broaden that so thats where all the research came, to understand that theres a big bucket of considerers out there in the new-to-cruise market and what would it take to convert these people and offer a product that would make them think twice or take notice of us and the cruise industry, P&O Director of Marketing and Distribution Simon Cheng said.

In place of the buffet, P&O Cruises will roll out a suite of pure ambrosia in its new restaurant options some included in cruise fares, some at a small surcharge but all

CRUISE REPORT

adding more luxury and elegance to the overall P&O at-sea experience. The line will debut The Pantry, an international food court of sorts, with a multitude of individual stations offering a variety of cuisines. The line describes it as a foodie haven, with options including contemporary Australian dishes through to Mexican street food.

Tables will be plentiful for couples and groups to dine together, with communal benches for diners happy to occupy any seat. The second option available at no extra cost is Waterfront Restaurant, a reimagined modern Australian cruise dining room offering ocean views and mood lighting.

Pan-Asian cuisine will be on offer at Dragon Lady, a new concept inspired by modern oriental eateries. Fans of Italian are also covered with Angelos, an upmarket restaurant inspired by the creations of photographic artist Angelo Frontoni. Both of these options are open for dinner only and will require advance reservations.

All of the new onboard features will be wrapped up in a new public brand and marketing tagline of Like No Place on Earth, a soft-launched campaign expected to be rolled out in full in the coming weeks.

In terms of selling, the new suite of offerings will not harm P&O Cruises ability to move cabins from travel agency shelves into the pockets of consumers.

The Carnival Australia family has long acknowledged the importance of the trade which brings in the majority of bookings and continues to do so with a new and ongoing industry incentive. Titled The Flagship Club, it will run from 1 December to 30 November on a year to year basis. Despite its recent launch date, the promotion is already in effect, with rewards to be issued retrospectively based on sales made from 1 December last year.

Agents can join the promotion online through the P&O Academy. Consultants will receive a unique registration number allowing them to accrue sales points. Eligibility for the program is automatic once an agent achieves $50,000 in gross revenue in P&O sales booked and deposited, based on the year in which the cruise voyage actually departs. The rewards begin with agents receiving 0.5% of every cent sold on top of the minimum $50k up to a maximum of $1000 in the form of a supplementary EFTPOS cash card, in addition to regular commission.

We can do a lot to generate demand around the consumer which is to drive traf c in store but we also want travel agents to drive conversion and think about cruising as the alternative, P&O senior vice-president Tammy Marshall told travelBulletin.

The top 20 selling agents for each twelve month period will also be offered a cabin on an annual P&O VIP cruise, which for 2013/14 will be the lines ve-night Australian Open tennis Grand Slam cruise from Sydney to Melbourne.

Like No Place on Earth, P&Os new marketing tagline

Paci c Jewel


CRUISE REPORT

CARNIVAL Australia CEO Ann Sherry has set her sights on being able to host the nautical ballet and media spectacle of all three Cunard Queens in Sydney Harbour at once by 2017, a sight only possible through expanded access to Garden Island, she says.

Such an auspicious target would be a crowning achievement on Sherrys shining legacy to the Australian cruise industry, if it can be pulled off. It is no secret within the industry that the Navy has for many years had its heels rmly dug in on civilian use of the military base which is a stones throw east from the Overseas Passenger Terminal at Circular Quay. Sherry said only recently the Navy has shown a reduced level of inertia toward a greater number of cruise ships utilising its port.

Other than a war of attrition, I dont think its a war. I think theyre just comfortable doing what theyve always done there and I guess they see us as the new kids on the block. Every facility that is owned by navy or army that civilians have tried to share has been hard work and thats just a cultural issue I think, she said.

But the ever-growing volume of rhetoric coming from tourism industry bodies, levels of government and cruise lines themselves is leading to signs of a more negotiable approach from the Navy, who have occupied Garden Island for more than two centuries.

The growing capacity of cruise ships visiting Sydney and their inability to t within

TIDE TURNING ON GARDEN ISLAND

SILVERSEA has launched its voyage options for 2016 which will see eight ships showcase 845 destinations across seven continents.

Covering 107 new ports, Silverseas ve ultra-luxury cruise ships will cover 385 destinations on 177 voyages over the 12 month period. Voyages include the 115-day Venetian World Cruise and 66-day Circle South America which includes a crossing of the Panama Canal and a three-day stopover in Rio de Janeiro.

From May to September, Silver Shadow will return to the Alaska on 17 seven-day voyages, with three voyages to feature multi-day stopovers in Myanmar. Silverseas three expedition ships will also visit over 500 destinations on 95 expedition cruises in 2016.

Silversea showcase

the 49-metre clearance underneath the Sydney Harbour Bridge is taking its toll on the Navy and Garden Island, as calls grow louder for greater access for the bene t of the state and national economies. Sherry said many productive conversations have taken place.

I think the view now is that were more compatible, were both interested in security, weve both got very strict security requirements so were not incompatible on that, she said. Weve worked out which part of it wed get in and out of without disrupting them. The last chief of navy who has just been promoted, he and I had some very positive conversations together and he said to me that it now needs a Cabinet decision.

A recent letter by NSW Premier Mike Baird calling for action on the matter from Canberra

has slammed the matter rmly back on the table, with both NSW Treasurer Andrew Constance and Federal Trade & Investment Minister Andrew Robb championing its cause, and the latter prepared to ght for it through the governmental channels in Canberra.

Upon the removal of the hammerhead crane, Sherry said Garden Island is capable of accommodating two cruise ships at one time by itself, freeing up the OPT for a third and White Bay for smaller vessels.

Cunard, for its part, is very keen to perform such a spectacle in Sydney Harbour. The line remembers the traf c-stopper that eventuated when two Queens crossed either side of Fort Denison in 2007, and is keen to do its part in giving Sydney another maritime moment to cherish, should the facilities be available.

CARNIVAL Cruise Lines is now operating two ships in Australian waters, with the 2015 cruise season kicking off late last month with the debut of Carnival Legend. Several thousand Aussie travel agents packed the ship for its rst voyage out of Sydney, dressing up in Legendary style. Pictured here with Elvis and one of his backup singers are Jennifer Vandekreeke, Carnival Cruise Lines director Australasia with Donna and Brian Meads-Barlow from DBT Corporate/Cruisescene.

Every facility that is owned by navy or army that civilians have tried to share has been hard work and thats just a cultural issue I thinkAnn Sherry, CEO Carnival Australia

CARNIVALS LEGENDARY LINE UP


CRUISE REPORT

AUSSIES SEE THE WORLD VIA BALTICIN a new move for Princess Cruises, a new global circumnavigation departing from Australia has been released, with the route taking passengers via the Baltic for the rst time ever.

The new voyage is in celebration of Princess Cruises next year chalking up its rst decade offering cruises from Australia. In those ten years since the beginning of 2005, Princess ships have collectively cruised a distance of more than 716,565 miles equivalent of three trips to the moon.

Releasing its 2016 winter season for the permanently Australian based Sea Princess, the new 104-night voyage will depart Sydney on 15 May, 2016, with berths for the entire lap around the world priced from $20,999 per person.

The voyage will transit the Panama Canal and offer stops in a variety of South American ports. Passengers will also not need to congregate in Sydney to board the voyage, with embarkation also available from Fremantle, Adelaide, Melbourne, Brisbane and Auckland.

For those unable to commit nearly one third of a year to a cruise, 30 sailings on Sea Princess, Dawn Princess and Sun Princess will sail from Brisbane, Sydney and Fremantle, taking guests to a total of 136 ports in 58 countries. Among the range is the return of a 75-night Circle Paci c voyage visiting China, Alaska, San Francisco, Hawaii and Tahiti, among others. The 2016 winter season is on sale now.

02 Another big wave season02 Norwegian announces US$3.025b acquisition of Prestige Cruise International02 Cruise Week 2014 kicks off04 Vanuatu P&O cruise hub?04 Portuscale cancels Australia09 GM shock at season axing09 APT launch Mekong deals11 Franklins 1845 ship found11 Travellers eye exotic ports16 Global statistics revealed16 Princess planning repairs

18 Solomons keen on inclusion18 Heritage Southern Hemisphere revival23 Legendary season begins23 Contiki boosts cruise options23 Keel laid on Escape25 Economic growth up 16%25 Industry toasts Carnival Legend30 Navy warming to sharing30 Cunard at the crossroads

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