Article originally appeared in TravelWeekly Australia
As airlines battled it out in the business class cabin, other sections of the aircraft were forgotten about. But, as Justin Wastnage explains, that dogfight has now moved further back down the plane
With Qantas launching premium economy on its long-haul services in mid-March, many of your clients will now have a real choice between economy class and business class.
Premium economy has been available in Australia for several years, with British Airways (BA) and Virgin Atlantic among the airlines to already offer the hybrid class. But John Borghetti, executive general manager at Qantas Airways, said the time is right for the national carrier to follow them.
Borghetti said that the "arms race" in business class seating has created a "gulf" between economy and premium seating where previously none existed. "Five years ago there was no need, but then came flat beds, then everyone needed flat and horizontal and so it goes on. But there is now a niche in the market for it," he said.
Unlike BA's World Traveller Plus, Borghetti believes Australian straightforwardness demands a straightforward name. Just like the Australian national carrier's loyalty scheme before it, simply called Frequent Flyer, the carrier's first foray into an enhanced cabin version of coach class travel was christened premium economy. "You cannot criticise Qantas's marketing, that's been proven over the years. We call it what it is, instead of coming up with a sexy name like 'blue class'," Borghetti said.
Qantas started flying the new service from April 1, with the four Boeing 747-400s that ply its Kangaroo Route to London via Bangkok and Singapore being the first aircraft to be refitted with the new cabins. Johannesburg services from Sydney received premium economy soon after, followed by Melbourne to Hong Kong services in mid-May and from Sydney by early August. The airline's Airbus A380s coming on stream at the end of the year will also feature the new class.
Premium economy aircraft will have 32 new Marc Newson-designed seats in a two-four-two layout in place of 60 standard economy places.
The seat itself is a clear advancement on coach. Qantas's seats are exactly half a metre wide, with a full metre of space, or pitch, between each seat and the one in front on most of the 747s. Virgin Atlantic's seats are one centimetre wider and offer the same pitch; as do those from BA, albeit over two centimetres narrower. Qantas's main local rival, Singapore Airlines, has 51cm wide seats in its Executive Economy section of the Airbus A340-500 it flies non-stop to New York and Los Angeles, but each seat has an inch less pitch.
In other words, the seats are pretty similar. But premium economy is more than comfy seats. Sitting in the Qantas version, you'll notice several new features that differentiate it from economy class. Laptop power cables come built in, as does on-demand television with bigger screens than in standard economy. Qantas also offers an upgraded menu, "inspired by Neil Perry". It is better than the economy fare, but not actually created by the Rockpool chef, as its business and first class menus are. But the wine is better, with selections made by the Qantas Wine Panel Members rather than the mini bottles they offer you down the back.
Airline comparison site Seat Guru says that premium economy tickets generally cost 95 per cent more on Pacific routes, but only 85 per cent more on Atlantic or Asian routes. The Qantas fare from Sydney to London will be around A$4567, or "exactly mid-way between economy and business," said Borghetti. However, in terms of value for money, Seat Guru says premium economy is only worth a 20 per cent premium. It offers the tip that: "If you book closer to your departure date, premium economy is generally only 35 per cent more expensive than your standard economy fare. The extra cost can be as low as 10 per cent more, so remember to ask about premium economy if you have a last minute economy booking."
There is also more choice than you might think. As Virgin Atlantic was quick to point out, Qantas is behind the premium economy curve, having initially been resistant to it. In the past decade Air New Zealand, All Nippon Airways, BA, Taiwan's EVA Air, Japan Airlines, Singapore Airlines, Thai Airways International and Virgin Atlantic have all introduced versions of the third way of service into the Asia Pacific region, with another dozen carriers globally offering the class.
Where Qantas has an advantage, however, is in its loyal customer base of Frequent Flyers. "Premium economy is aimed at business travellers who travel economy or the older generation who can pay for more comfort but not as much as business class," Borghetti says. Small and medium-sized enterprises have been targeted through specific advertising and mail outs.
Experience from other airlines shows that few people downgrade from business to premium economy, but rather treat themselves for long-haul flights. Borghetti is a man known for reading the Australian avaiation landscape well, so you can believe his enthusiasm for the product, even if you do not believe the hype.
Monday, September 15, 2008
Friday, September 5, 2008
Make your Marque in Sydney
Review originally appeared in TravelWeekly Australia September 5, 2008
Booking business hotels in Sydney is tricky if your clients cannot spend $300 or more per night. The Marque Hotel Sydney is a renovated business hotel in great style with a central location. Justin Wastnage recently stayed at the property and had change to spare
The Rendezvous group recently finished a four million dollar makeover of the former Country Comfort Inn's central Sydney hotel. The Marque Sydney is now pitched at the trendy four-star market.
First impressions 7/10
The reception space is nicely done, with retro lollipop-coloured chairs and shiny plastic surfaces throughout. The check-in staff are pleasant and helpful, though not entirely at ease with the hotel's systems. Getting into the car park (a tricky thing in this neighbourhood of one-way streets and no entry signs) could have been better explained. All these points, plus the shabby lift, are no doubt teething problems and have probably already been sorted out.
Ambience 6/10
The Marque claims to be a boutique hotel brand. It's not. But that said, it pulls off the modern chic look with ease. It's minimalist, with blacks and reds complemented by grey furniture. The property is not huge, but the design team has worked wonders with the space it has. The location, almost directly opposite Central Station, means that slightly unsavoury characters and low-rent storefronts will remind you that you are in the cheap end of town despite the slick appearance.
Accommodation 8/10
There are still some lingering reminders of the old Country Comfort Inn, chiefly in the tight layout of the corridors and internal structure of the rooms. But again, the décor more than makes up for it. The suite's bathroom had a very funky angled marble floor to drain the water away in the shower that left the rest of the room dry. Drawbacks of the location become apparent, however, during weekend nights when the street outside is noisy from either drunken revellers or unlicensed drag racers using the five-lane intersection as a starting grid.
Facilities 7/10
Unfortunately, when I stayed, the much-vaunted iPod clock radio did not work and neither did the television, which appeared not to pick up the ABC. But the suite had a fully stocked kitchen in addition to the mini bar - perfect for the longer business stay. The downstairs Script restaurant makes a good stab of being a trendy lounge bar and the food is good. Nearby options are plentiful if your clients know how to get to Chinatown. If not, they will find themselves at a loss for culinary alternatives in the wrong end of town.
Service 7/10
Friendly staff were still finding their way when I stayed, but it's still early days for the hotel and overall the service was fine.
Overall 70%
Four-star hotels in Sydney are often rough around the edges, but The Marque is one a brace of renovated properties that have a definite cool factor in the mid price bracket.
A business bed and breakfast package at The Marque Sydney is available from A$170 per room, per night. For more information visit www.marquehotels.com/sydney
Booking business hotels in Sydney is tricky if your clients cannot spend $300 or more per night. The Marque Hotel Sydney is a renovated business hotel in great style with a central location. Justin Wastnage recently stayed at the property and had change to spare
The Rendezvous group recently finished a four million dollar makeover of the former Country Comfort Inn's central Sydney hotel. The Marque Sydney is now pitched at the trendy four-star market.
First impressions 7/10
The reception space is nicely done, with retro lollipop-coloured chairs and shiny plastic surfaces throughout. The check-in staff are pleasant and helpful, though not entirely at ease with the hotel's systems. Getting into the car park (a tricky thing in this neighbourhood of one-way streets and no entry signs) could have been better explained. All these points, plus the shabby lift, are no doubt teething problems and have probably already been sorted out.
Ambience 6/10
The Marque claims to be a boutique hotel brand. It's not. But that said, it pulls off the modern chic look with ease. It's minimalist, with blacks and reds complemented by grey furniture. The property is not huge, but the design team has worked wonders with the space it has. The location, almost directly opposite Central Station, means that slightly unsavoury characters and low-rent storefronts will remind you that you are in the cheap end of town despite the slick appearance.
Accommodation 8/10
There are still some lingering reminders of the old Country Comfort Inn, chiefly in the tight layout of the corridors and internal structure of the rooms. But again, the décor more than makes up for it. The suite's bathroom had a very funky angled marble floor to drain the water away in the shower that left the rest of the room dry. Drawbacks of the location become apparent, however, during weekend nights when the street outside is noisy from either drunken revellers or unlicensed drag racers using the five-lane intersection as a starting grid.
Facilities 7/10
Unfortunately, when I stayed, the much-vaunted iPod clock radio did not work and neither did the television, which appeared not to pick up the ABC. But the suite had a fully stocked kitchen in addition to the mini bar - perfect for the longer business stay. The downstairs Script restaurant makes a good stab of being a trendy lounge bar and the food is good. Nearby options are plentiful if your clients know how to get to Chinatown. If not, they will find themselves at a loss for culinary alternatives in the wrong end of town.
Service 7/10
Friendly staff were still finding their way when I stayed, but it's still early days for the hotel and overall the service was fine.
Overall 70%
Four-star hotels in Sydney are often rough around the edges, but The Marque is one a brace of renovated properties that have a definite cool factor in the mid price bracket.
A business bed and breakfast package at The Marque Sydney is available from A$170 per room, per night. For more information visit www.marquehotels.com/sydney
Pulling out the aviation crystal ball
Article originally appeared in TravelWeekly Australia September 5, 2008
The treacherous economic times have inevitably taken their toll on Australia's two biggest carriers. As Justin Wastnage writes, the future is still very much uncertain and each airline has a different outlook
Whether your glass is half empty of half full is usually a definer of an optimistic temperament. Yet late last month, Australia's two Australia's two largest airline groups, Qantas and Virgin Blue, issued starkly different forecasts for the year ahead, despite both having posted profits.
In fact, their two respective chief executives Geoff Dixon and Brett Godfrey acted out of character. The dour Dixon, who can usually be relied upon to be downbeat, predicted Qantas would make a smaller profit than this year, but still be healthily in the black to the tune of hundreds of millions. Godfrey, meanwhile, junked his usual bouncy demeanour to warn shareholders to expect rough times ahead.
Qantas (which includes low cost carriers Jetstar, Jetstar Asia and Jetstar Pacific in addition to the Australian flag carrier Qantas Airways), posted another record post-tax profit of A$970 million, up 44 per cent on last year's results. The group's gross profit was A$1.4 billion on a revenue of A$16.2 billion, which Dixon said "emphasises the underlying strength of the company."
His counterpart at Virgin Blue, meanwhile, was also celebrating a profit. Godfrey initially announced an "underlying net profit" of A$140.5 million. In fact, more orthodox accounting would have taken off the A$42.8 million the airline has already spent on launching V Australia. This left it with a profit of A$97.7 million, 55 per cent down on last year, but a triumph when taken in the context of analyst reports (possibly encouraged by rival airlines) which predicted a loss. Virgin Blue, which also includes Pacific Blue and Polynesian Blue, last year made A$216 million after tax.
The carrier, which has moved from the low-cost model towards a full service offering, blamed spiralling oil prices against which it has fewer hedges than rival Qantas. Brett Godfrey, Virgin Blue chief executive warned the coming year could be worse, with a loss predicted if fuel does not come down in price. During the launch of trans-Pacific V Australia, the group will incur more start-up costs related to underutilisation of its Boeing 777-300ERs. Godfrey also warned that the next three years could be worse than the aftermath of September 11, 2001 and severe acute respiratory syndrome (SARS).
Qantas's own figures were down around A$8 million, or 2.5 per cent, for the second half of its 2007/8 reporting year and Dixon admitted the group would make only half of this year's record profit, with pre-tax earnings "broadly in line with analysts'' consensus forecast." Pressed, Dixon clarified this would be around A$750 million. Dixon scotched talk of a three-year lull, saying it was impossible even to predict one year in advance.
Giovanni Bisignani, chief executive of the International Air Transport Association was in Sydney on the free day between the two companies' full year earnings announcements and he added gloom to the local outlook, by reiterating his view that globally the industry will lose US$6.1 billion this calendar year. He hinted that a further two dozen airlines would also falter before the end of the year, on top of the 25 that have already done so.
But Bisignani also praised Australian aviation for having transformed itself better than most, cutting costs where other airlines have struggled. This is reflected in both Virgin and Qantas's yield figures. Virgin, for example, saw its yield rise by 0.2 per cent despite the rising fuel prices. On average, the airline was able to charge just over 10¢ per kilometre flown, a rise of 0.7 per cent. Qantas saw its own passenger revenue per passenger kilometre rise to 11.81¢, up 1.2 per cent. But one percent price rises do not cover fuel price rises of almost 20 per cent. Instead, both airlines have managed to slash costs out of their businesses.
When looking into the future, further belt tightening will be required. But that need not mean the glass if half empty, as long as Australians continue to drink from the glass.
The treacherous economic times have inevitably taken their toll on Australia's two biggest carriers. As Justin Wastnage writes, the future is still very much uncertain and each airline has a different outlook
Whether your glass is half empty of half full is usually a definer of an optimistic temperament. Yet late last month, Australia's two Australia's two largest airline groups, Qantas and Virgin Blue, issued starkly different forecasts for the year ahead, despite both having posted profits.
In fact, their two respective chief executives Geoff Dixon and Brett Godfrey acted out of character. The dour Dixon, who can usually be relied upon to be downbeat, predicted Qantas would make a smaller profit than this year, but still be healthily in the black to the tune of hundreds of millions. Godfrey, meanwhile, junked his usual bouncy demeanour to warn shareholders to expect rough times ahead.
Qantas (which includes low cost carriers Jetstar, Jetstar Asia and Jetstar Pacific in addition to the Australian flag carrier Qantas Airways), posted another record post-tax profit of A$970 million, up 44 per cent on last year's results. The group's gross profit was A$1.4 billion on a revenue of A$16.2 billion, which Dixon said "emphasises the underlying strength of the company."
His counterpart at Virgin Blue, meanwhile, was also celebrating a profit. Godfrey initially announced an "underlying net profit" of A$140.5 million. In fact, more orthodox accounting would have taken off the A$42.8 million the airline has already spent on launching V Australia. This left it with a profit of A$97.7 million, 55 per cent down on last year, but a triumph when taken in the context of analyst reports (possibly encouraged by rival airlines) which predicted a loss. Virgin Blue, which also includes Pacific Blue and Polynesian Blue, last year made A$216 million after tax.
The carrier, which has moved from the low-cost model towards a full service offering, blamed spiralling oil prices against which it has fewer hedges than rival Qantas. Brett Godfrey, Virgin Blue chief executive warned the coming year could be worse, with a loss predicted if fuel does not come down in price. During the launch of trans-Pacific V Australia, the group will incur more start-up costs related to underutilisation of its Boeing 777-300ERs. Godfrey also warned that the next three years could be worse than the aftermath of September 11, 2001 and severe acute respiratory syndrome (SARS).
Qantas's own figures were down around A$8 million, or 2.5 per cent, for the second half of its 2007/8 reporting year and Dixon admitted the group would make only half of this year's record profit, with pre-tax earnings "broadly in line with analysts'' consensus forecast." Pressed, Dixon clarified this would be around A$750 million. Dixon scotched talk of a three-year lull, saying it was impossible even to predict one year in advance.
Giovanni Bisignani, chief executive of the International Air Transport Association was in Sydney on the free day between the two companies' full year earnings announcements and he added gloom to the local outlook, by reiterating his view that globally the industry will lose US$6.1 billion this calendar year. He hinted that a further two dozen airlines would also falter before the end of the year, on top of the 25 that have already done so.
But Bisignani also praised Australian aviation for having transformed itself better than most, cutting costs where other airlines have struggled. This is reflected in both Virgin and Qantas's yield figures. Virgin, for example, saw its yield rise by 0.2 per cent despite the rising fuel prices. On average, the airline was able to charge just over 10¢ per kilometre flown, a rise of 0.7 per cent. Qantas saw its own passenger revenue per passenger kilometre rise to 11.81¢, up 1.2 per cent. But one percent price rises do not cover fuel price rises of almost 20 per cent. Instead, both airlines have managed to slash costs out of their businesses.
When looking into the future, further belt tightening will be required. But that need not mean the glass if half empty, as long as Australians continue to drink from the glass.
No trouble in paradise
Originally published in TravelWeekly Australia September 5, 2008
The untouched charm of Vanuatu is slowly reaching the mainstream, with a series of new resorts opening, reports Justin Wastnage from Port Vila
Vanuatu is gearing up to welcome plenty more Australians in coming years
The feelgood factor is something politicians are keen to foster heading into an election. So Vanuatu's leaders will be happy with the current upbeat mood in the Pacific archipelago, which was recognised as the happiest place on earth by the New Economics Foundation, a think tank. The mood was lifted further by Priscila Tommy, who has just returned from the Olympics, where she represented Vanuatu in table tennis, despite the country only having four ping-pong tables.
More importantly, the country's tourism industry (which ANZ Bank estimates to represent around 40 per cent of the country's economy) is booming. So no surprise that deputy prime minister Edward Natapei took time out of electioneering to address the Tok-Tok travel conference in Port Vila at the end of August. "Tourism has overtaken copra [coconut oil] as our main earner, so all the parties are strongly supportive," he said.
Australians account for around 60 per cent of all tourists, followed by New Zealanders and residents of New Caledonia, says Annie Naitu from the Vanuatu Tourism Office (VTO). The VTO expects 100,000 Australians to visit this year, up from 83,000 last year. It has a plan to double this in 2009 and reach 300,000 the year after, she says.
Wholesalers are taking the country very seriously as well, with 68 attending this year's Tok-Tok, up from 50 last year - and well up from a mere 20 a few years ago. They are drawn by a wealth of new product, says one buyer from Creative Holidays. Her Qantas Holidays' counterpart was scheduled to spend ten days visiting properties on several Vanuatu islands, while Infinity Holidays' buyer had two days of appointments with the new resorts and hotels that have sprung up in the past few years.
Naitu bristles (as much as anyone in this laid-back land does) when asked about the comparison with Fiji as a safe, family-friendly destination. Packages are cheap, she admits, but the culture of the native ni-Vanuatu people is alive and well, (in contrast to Fiji, Naitu implies). "Vanuatu is more authentic, more unspoilt," she says. With well-developed cultural tours, soft adventure activities and natural wonders, there is more to do during the day outside resorts, one wholesaler said.
But historically this has been compensation for less developed accommodation than Fiji's upscale resorts. This is beginning to change, says Tony Burns, president of the Vanuatu Hotel and Resort Association and also general manager of one of the country's top addresses, Le Lagon.
Sophistication is coming fast, he says, with accommodation choices following restaurants in moving upscale. The quality of the naturally organic meat and produce means it is almost effortless to create fantastic food, says Paul-Alexandre Bossy, head chef at the Les Alizés French restaurant that is a fine dining staple of Vanuatu itineraries.
New resorts are springing up not only on Efate and its capital Port Vila, but also on the volcanic beach island of Tanna and Espiritu Santo, home to some of the best dive sites in the world. Spreading the benefits of tourism outside Efate is also a key goal of the government, Natapei explains.
Testimony to the increased demand is the robust health of national flag carrier Air Vanuatu, which will soon have the youngest fleet in the South Pacific as it replaces older aircraft. The routes to Australia are the first to benefit, with a brand new Boeing 737-800 now flying down here since January, Malcolm Pryor, the carrier's Australian general manager says.
The carrier now faces increased competition, with Virgin's Pacific Blue announcing services from Sydney and Brisbane from December. In response, Air Vanuatu recently added Melbourne to its departure points of Sydney and Brisbane and is pleased with the results to the point it will add additional services, he says. "Victoria delivered a high proportion of our passengers even before the direct flights because it's an adventurous market. They've been to the Pacific before but they want something different and Vanuatu is largely untouched," he says.
But Vanuatu is about to get a whole lot more touched. The US government has donated US$7 million (A$8.2 million) for a road building project that will pave the entire highway circling Efate. Billboards announcing beachfront development opportunities in currently inaccessible locations may be a sign of things to come. Tok-Tok also welcomed its first ever delegation of US wholesalers, which could herald a rise in standards (and prices) if Americans start visiting the island chain.
Natapei says the growth must be moderated, not least to ensure the destination's unspoilt charm that attracts so many, is not lost. At the same time, tourism brings in welcome dollars. Meanwhile, the national Vanuatu interest in table tennis has swollen so much since Tommy's appearance in Beijing (and her gold medal performance at the warm-up South Pacific Games) that the government has pledged to spend some of the growing tourism receipts on buying ping pong equipment for every village if it wins the upcoming election. With peaceful elections to remind Australians that not all Pacific islands have coups, Vanuatu will be the winner, no matter who takes power.
The untouched charm of Vanuatu is slowly reaching the mainstream, with a series of new resorts opening, reports Justin Wastnage from Port Vila
Vanuatu is gearing up to welcome plenty more Australians in coming years
The feelgood factor is something politicians are keen to foster heading into an election. So Vanuatu's leaders will be happy with the current upbeat mood in the Pacific archipelago, which was recognised as the happiest place on earth by the New Economics Foundation, a think tank. The mood was lifted further by Priscila Tommy, who has just returned from the Olympics, where she represented Vanuatu in table tennis, despite the country only having four ping-pong tables.
More importantly, the country's tourism industry (which ANZ Bank estimates to represent around 40 per cent of the country's economy) is booming. So no surprise that deputy prime minister Edward Natapei took time out of electioneering to address the Tok-Tok travel conference in Port Vila at the end of August. "Tourism has overtaken copra [coconut oil] as our main earner, so all the parties are strongly supportive," he said.
Australians account for around 60 per cent of all tourists, followed by New Zealanders and residents of New Caledonia, says Annie Naitu from the Vanuatu Tourism Office (VTO). The VTO expects 100,000 Australians to visit this year, up from 83,000 last year. It has a plan to double this in 2009 and reach 300,000 the year after, she says.
Wholesalers are taking the country very seriously as well, with 68 attending this year's Tok-Tok, up from 50 last year - and well up from a mere 20 a few years ago. They are drawn by a wealth of new product, says one buyer from Creative Holidays. Her Qantas Holidays' counterpart was scheduled to spend ten days visiting properties on several Vanuatu islands, while Infinity Holidays' buyer had two days of appointments with the new resorts and hotels that have sprung up in the past few years.
Naitu bristles (as much as anyone in this laid-back land does) when asked about the comparison with Fiji as a safe, family-friendly destination. Packages are cheap, she admits, but the culture of the native ni-Vanuatu people is alive and well, (in contrast to Fiji, Naitu implies). "Vanuatu is more authentic, more unspoilt," she says. With well-developed cultural tours, soft adventure activities and natural wonders, there is more to do during the day outside resorts, one wholesaler said.
But historically this has been compensation for less developed accommodation than Fiji's upscale resorts. This is beginning to change, says Tony Burns, president of the Vanuatu Hotel and Resort Association and also general manager of one of the country's top addresses, Le Lagon.
Sophistication is coming fast, he says, with accommodation choices following restaurants in moving upscale. The quality of the naturally organic meat and produce means it is almost effortless to create fantastic food, says Paul-Alexandre Bossy, head chef at the Les Alizés French restaurant that is a fine dining staple of Vanuatu itineraries.
New resorts are springing up not only on Efate and its capital Port Vila, but also on the volcanic beach island of Tanna and Espiritu Santo, home to some of the best dive sites in the world. Spreading the benefits of tourism outside Efate is also a key goal of the government, Natapei explains.
Testimony to the increased demand is the robust health of national flag carrier Air Vanuatu, which will soon have the youngest fleet in the South Pacific as it replaces older aircraft. The routes to Australia are the first to benefit, with a brand new Boeing 737-800 now flying down here since January, Malcolm Pryor, the carrier's Australian general manager says.
The carrier now faces increased competition, with Virgin's Pacific Blue announcing services from Sydney and Brisbane from December. In response, Air Vanuatu recently added Melbourne to its departure points of Sydney and Brisbane and is pleased with the results to the point it will add additional services, he says. "Victoria delivered a high proportion of our passengers even before the direct flights because it's an adventurous market. They've been to the Pacific before but they want something different and Vanuatu is largely untouched," he says.
But Vanuatu is about to get a whole lot more touched. The US government has donated US$7 million (A$8.2 million) for a road building project that will pave the entire highway circling Efate. Billboards announcing beachfront development opportunities in currently inaccessible locations may be a sign of things to come. Tok-Tok also welcomed its first ever delegation of US wholesalers, which could herald a rise in standards (and prices) if Americans start visiting the island chain.
Natapei says the growth must be moderated, not least to ensure the destination's unspoilt charm that attracts so many, is not lost. At the same time, tourism brings in welcome dollars. Meanwhile, the national Vanuatu interest in table tennis has swollen so much since Tommy's appearance in Beijing (and her gold medal performance at the warm-up South Pacific Games) that the government has pledged to spend some of the growing tourism receipts on buying ping pong equipment for every village if it wins the upcoming election. With peaceful elections to remind Australians that not all Pacific islands have coups, Vanuatu will be the winner, no matter who takes power.
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