Tuesday, December 22, 2009

Burma travel boycott hypocritical and usless

The following article originally appeared on the National Times on December 22, 2009.

Rangoon could be Asia's Havana. Crumbling colonial architecture quietly decays in the tropical heat while patched-up automotive relics lumber around pot-holed streets. But the former Burmese capital is resolutely off most travellers' itineraries.

Instead, stray dogs growl menacingly at passers-by on the wide boulevards of the city's colonial quarter. The few foreigners taking tea at the impressively restored Strand Hotel are on government business. The other Westerners you see darting out of the 1970s Mazda B400 taxis are reluctant to stop and talk, presumably because they are involved in the less noble trade of sanctions-busting.

Even old South-East Asian hands shun Burma. The reason is the well-funded Burma Campaign, which counts among its supporters high-profile politicians such as former British prime minister Tony Blair and Hollywood A-listers including Jennifer Aniston, Woody Harrelson and Jim Carey. Tourism brings an unacceptable veneer of respectability to a vile regime, runs the campaign's logic.

The group also uses media-friendly guerilla tactics. Its activists recently hijacked the Qantas annual general meeting in Perth over Jetstar's decision to include Rangoon in its route network. Lonely Planet is another high-profile Australian company to feature on the campaign's "black list" of companies "propping up the regime".

Yet there has been a shift in recent years from other pro-Burmese pressure groups away from this hardline approach. The Free Burma Coalition, comprised mainly of exiled Burmese, now fully supports tourism and travel to Myanmar, believing the benefits of contact to outweigh the implied show of support travel brings. In August, Aung San Suu Kyi, the jailed beacon of Burmese democracy and postergirl for freedom activists around the world, appeared to reverse her previously vocal opposition to tourism in comments leaked to the international press.

It is likely that Suu Kyi's National League for Democracy (NLD) will stop short of a full u-turn until such a policy shift can be used as a bargaining chip to guarantee next year's planned election. Unlike the Government's big foreign currency earners, petroleum exploration and logging, tourism's economic impact is tiny. But its political impact is huge and any NLD endorsement has the potential to unlock the pent-up demand for travel to this unspoilt, quintessentially Indochinese land.

To read more of this article, please go to the original article on the National Times site by clicking this link.

Friday, November 20, 2009

Court in the act

This article originally appeared in TravelWeekly Ausralia

Judges hearing the travel agents' appeal of the fuel surcharge case have taken a more critical look at overrides and the travel trade in general, as Justin Wastnage writes

The trouble with dismantling something is that it is often impossible to get all the parts back together again. The baffling and complex jigsaw of master contracts, agency sales agreements, rule books, and guidelines make the Australian travel distribution system appear particularly tempting to pull apart.
This month a panel of appeal court judges in Sydney's Federal Court attempted to do just that. The system of overrides was examined in some detail.
The appeal brought by a thousand-odd independent travel agents is the last ditch bid to claw back unpaid commission on fuel surcharges. The original June judgment found that Qantas had misled the public in describing part of its overheads as a tax or charge, since the public would assume this went to a third party or government. However, the trial judge, Justice Michael Moore said that Qantas was within its contractual rights to withhold commissions on this surcharge.
Although far from the testosterone-fuelled verbal stoushes of Hollywood trials, the appeal was a lively affair. The panel of three judges took Qantas to task over its interpretation that fuel was somehow a divisible part of providing air transportation.
Many Australian agencies use the International Air Transport Association's (IATA) billing and settlement plan (BSP) to receive commission from the airlines on sales. But carriers offer extra remuneration through an override, paid either to the head office or franchisee. This quirk is contained in a seemingly innocuous clause in the agency sales agreement.
Qantas barrister James Lockhart SC argued in court that this clause gave airlines carte blanche to pay agents whatever they liked however and whenever they liked, so long as they communicated the changes. But one judge in particular, Justice Steven Rares, took exception to this argument, calling it "commercially not sensible". Justice Rares said the clause was redundant, as the "carefully constructed global" BSP rules already set out how commission was paid. The only reason to add an extra clause, Justice Rares suggested, was "to do something outside the ordinary". Or something dodgy, some would say.
By using the clause and defining part of its fuel costs as a surcharge, Qantas was able to withhold as much as one-third of the commission due to agents, claimed Justin Gleeson SC, who represented the agents.
Qantas denies pulling the wool over agents' eyes, Lockhart saying there were "many other ways" the airline could reduce its payments to agents. Qantas argued that fares and ticketing is a complex affair and it relies on agents to explain the various rules and tariffs to the public. In return, agents were rewarded either in commission or in bonus payments. "It would make no commercial sense to alienate agents," Lockhart said.
But, at times rattled, Lockhart was unconvincing when trying to defend the fuel surcharge. Justice Rares probed Lockhart several times on how Qantas could justify splitting out such an essential part of flying a plane as fuel, while a second judge, Justice Bruce Lander, posed the hypothetical situation where Qantas could call its entire cost of operation a "surcharge" and thus avoid paying commission altogether. Lockhart sheepishly admitted it could.
The Qantas defence rests on the fact that agents know the published fare in the global distribution systems is not the same as the total cost the passenger pays.
In the legal world two wrongs do sometimes mean a right. Airlines around the world all thought they could get away with the same trick. In total some 350 airlines have charged either fuel surcharges or insurance levies since the early 2000s, under the anonymous codes YQ or YR. IATA itself is divided over whether airlines have the right to use this to re-coup operating costs, with Michael Feldman IATA's former global director of passenger services reminding airlines in a memo tendered in court that "those codes should be reserved for charges that go wholly to third parties". Yet the IATA Australian regional manager Jeff Murdoch advised he had "no problem with Qantas using YQ for fuel surcharge," Lockhart said.
The agents' legal team appears to have convinced at least one appeal court judge of its arguments, but the devil is often in the arcane detail of contracts. Although the case has rumbled on since 2007, the final decision is not expected until February or March. But if the appeal court judges question the very validity of overrides, the ramifications could be felt for years to come. The carefully dismantled agency sales agreement may never be put back together again in quite the same way.

Qantas seeks airport harmony

This article originally appeared in TravelWeekly Australia

Alan Joyce, Qantas chief executive, has plans to turn around the image of the national carrier. Reducing airport processing time is the first step, Justin Wastnage writes.

Despite being integral to virtually every trip, few people rave about their airport experiences. It is true that some architectural triumphs exist, such as Seoul's Incheon, Hong Kong's new terminal and just about any airport in Spain. But by and large airports are places most travellers would rather spend less, rather than more time.
Unusually for an airline not famed for responding to customer feedback, Qantas appears to have taken this onboard. After his first year as chief executive, Alan Joyce appears to be finally stepping out of the shadow of predecessor Geoff Dixon and is hoping to change the company around. Citing companies such as Tiffany & Co., Mercedes-Benz and Apple, Joyce told Travel Weekly at the National Aviation Press Club that he wants Qantas to become a customer service-led innovative company "owning the premium space".
First step towards this somewhat unlikely goal is to halve waiting time at airports through the use of nifty technology. Starting with Perth in mid-2010 then extending to Sydney, Melbourne and other capital cities, Qantas domestic terminals will use radio frequency identification tags similar to office swipe cards to check in frequent flyers.
Technology aside, what the project reveals about Joyce's ambitions for Qantas is somewhat of an admission of its past failures. Over 1,600 staff have been processed through the airline's charm school, the $10 million Centre of Excellence, after customers complained about surly staff. As proof of the success of the reprogramming, in August Qantas scored the highest customer satisfaction score in its history, Joyce said.
"Qantas will not be Jetstarised. Qantas is our iconic, premium airline brand; it has enduring value," Joyce said in reference to assumptions that the profitable low-cost division would slowly take over the airline group. Joyce instead aims to capture more slices of the market than it currently holds and premium is an important slice that will grow again after the current slump is over.

The world in 2029

The following article originally appeared in TravelWeekly Australia

If you want to know where demand for travel is going over the next two decades, ask Airbus and Boeing. Both manufacturers' forecasts place Australia in a fast growing part of the world, as Justin Wastnage found out recently

In tough times, you like to be able to see a way out. There is now a wealth of economic data showing that Australia has dodged the global slump bullet, but a little less data when it comes specifically to travel. But Airbus and Boeing, manufacturers of the bulk of the world's aircraft, have teams of econometrics experts crunching the numbers on air transport trends. And because planes fly for at least 20 years, their forecasts are pretty far reaching.
They are also remarkably reliable. Boeing has been surveying since 1961 and Randy Tinseth, vice president of marketing for Boeing Commercial Airplanes says the almost 50 years of data provide some very clear examples of how air travel always digs itself out of recession. The charts also provide some long-term growth trends that are hard to mistake. His Airbus counterpart, John Leahy, the airframer's chief operating officer for customers, concurs, saying that growth in air transport always tracks growth in the real economy, but grows twice as quickly. Average growth in air travel has been 5.2% per year in the past 30 years, despite the economy growing by only 3% on average over the same period. Passenger ticket sales have doubled every 15 years, Airbus data shows, says Leahy.
When the economy will pick up is the big question on everyone's lips. Leahy neatly sums up the analysis by saying that while "history never repeats itself, history does tend to rhyme." Airbus sees a recovery in air transport by the middle of next year, with 6% to 10% growth again by 2011. Boeing, meanwhile says that next year will see a global economic recovery, but that it will take another year for airlines to become profitable and thus start buying aircraft again.
This augers well for anyone who sells travel for the next 20 years, both manufacturers agree. Boeing suggests demand for airline tickets will increase by 4.1% every year until 2029. However, both forecasts show flights to and from Australia growing at a much quicker rate than other parts of the world. Tinseth points to figures showing that only New Zealanders, Singaporeans and Hong Kongers take more airline trips than Aussies every year.
Currently around a third of the aircraft sold in the world (and thus airline tickets) are from the US or Canada. Europe has a quarter of the world's air traffic, while Asia provides another quarter. This ratio will be flipped on its head over the next 20 years, says Leahy. Asia will be the big growth area, with China and India <[stk -1]>unsurprisingly supplying the most growth. This will be good for Australia, he says, because we enjoy cultural links with both countries. India has Commonwealth links and enjoys beating us at cricket, while China sends so many students here, that word has gotten back about what a great place Australia is, he reckons.
The flights they arrive on will have seats heading in the opposite direction; pushing total capacity out of Australia up, adds Laurent Rouard, Airbus senior vice president for market and product strategy.
Regarding the doubling of flights, Boeing pointed to the US since Delta Air Lines and V Australia started competing on the Los Angeles route as proof of the wisdom of its earlier forecasts. Looking forward, Rouard suggests the Middle East will be the single largest growth area over the next decade, since the location is perfect for efficient hubbing, a prediction borne out by carriers such as Qatar Airways starting services in December. The number of seats available to the Gulf region will grow 8.2% on average each year. Other growth areas agents should expect in the next 10 years are Latin America, set to grow 7%, China 7% and Africa 5.9% (see graphic, right).
<[stk -1]>But while they agree on the general figures, Airbus and Boeing differ when it comes to where they see this growth occurring. Airbus points to the growth of "megacities" as proof of the need for more of its double-decker A380 superjumbos. Leahy says that today 92% of all traffic originates or ends in one of 37 cities (of which Sydney is the sole Australian representative). Los Angeles, London, Paris, Frankfurt, Tokyo and Beijing are all members of this club, membership of which is defined by having 10,000 passengers or more departing daily. In twenty years 82 cities will fall into this camp, so thinking anything but a super large aircraft is going to be used is "absurd" as Leahy puts it. "Our competitor seems to think people will be flying in lots of little aircraft, but look at environmental concerns, look at congested airports and look at the sheer logistics of moving so many people," he says. Airbus predicts 1300 passenger versions of the A380 or Boeing's new jumbojet, the 747-8 Intercontinental will be needed over the next 20 years, while Boeing thinks the figure will be closer to 600.
Boeing, meanwhile, is pinning its hopes on people wanting to avoid switching planes wherever they can. So Queenslanders will opt for more direct flights from Brisbane and Cairns than having to fly through Sydney as more services come online. Tinseth says that over the years growth in air travel has always led to more routes opening up, not fewer. "As people get fed up with airports, they will want to avoid hubs," he says. Boeing estimates that airlines will buy 6700 aircraft with between 200 and 400 seats over the next 20 years, while Airbus puts the figure at 4100. Significantly, Boeing has the 777 and the delayed 787 Dreamliner in this category.
Drill down to our region and the picture becomes more complex. For Boeing, Australia is the twelfth biggest market in the world. There are currently 400 aircraft based here, which will more than double to 850 by 2029, of which 670 will be new aircraft, Tinseth says. Boeing expects our gross domestic product to rise by 2.9% on average over the next 20 years, but airline traffic to rise by 5.1%. Of this, traffic to Asia will be the fastest growing destination.
Airbus only has a 26% share here, but Leahy says he was meeting Qantas chief executive Alan Joyce while in Sydney to exploit the national carrier's annoyance at 787 delays. But Airbus signed a new order for its smaller A320 aircraft with Air New Zealand this month, skewing its favouritism towards our Trans Tasman cousins. Together with New Zealand and the Pacific Islands Airbus estimates carriers in Australia will need a further 630 aircraft over the next 20 years. Passenger growth will average 5% over the period, higher than the global average of 4.7%, Leahy says. The region's fleet will more than double from 338 today to 698 by 2029, with 271 replacement aircraft and 360 additional aircraft coming in.
Significantly, Airbus sees a need for 60 very large aircraft such as the A380 or 747, against Boeing's prediction of just five. Rouard is adamant that Australia's proximity to so many of the emerging megacities will make anything less than this figure too small.
So while the big boys bicker about just how we will fly in years to come, at least their message is consistent: there will be richer pickings for many years to come.

Seat review: Emirates A380

The following article originally appeared in TravelWeekly Australia

Justin Wastnage travelled on the Emirates A380 from Sydney to Dubai in business class. Here's how he rated it.

LOUNGE: Attempting to leave Sydney during the Great Dust Storm of 09, my flight was always going to be delayed. Whiling away two hours in the Emirates lounge was a pretty painless way of doing so. The food is the stand-out, featuring a hot buffet with comfort food like shepherd's pie alongside Moroccan tajine and poached salmon. There is great Middle Eastern fare to try as well. The décor of gold trims on the wooden partitions may be a little gaudy to many, but all the usual lounge ingredients are there. 8/10

SEAT: The vast real estate available to airlines flying the A380 is used in different ways. Emirates has gone for a pod-like module that has a myriad of compartments and a minibar for each passenger. Couples have two conjoined seats, while singles have window pods. Considering the aircraft only entered into service earlier this year, some of the plastics and materials looks a little scuffed already and the seat was impossible to escape from. The interlocking table also makes it impossible to escape during the lengthy meal service. Once converted into a lie-flat bed and covered with a mattress, the bed is one of the most comfortable I have slept in. As with the lounge, the brass and pastel styling might be more suited to Middle Eastern tastes. 8/10

SERVICE: The multinational cabin crew all seemed to gel together and at times you felt like you were part of their gang as they laughed and joked. Service was very friendly and efficient without being fawning or obsequious. However, the drinks service for all meals was extremely slow; meaning a main meal with no wine and breakfast without coffee. 7/10

EXTRAS:The amenities kit features Bulgari toiletries plus the men's kit has none other than a Taylor's of Old Bond Street razor, raising the bar for others who give away plastic disposables. The biggest extra on the Emirates A380 is the huge bar. Pioneered by Virgin Atlantic, the in-flight bar is now perfected. Rather than standing around or perching on bar stools, the Emirates bar provides two long couches ideal for socialising. 9/10

FOOD:The great start made in the lounge is built upon in the air. Braised beef is a staple of airline cuisine, but the Emirates cut was excellent quality. The dessert was light and there was a good choice of healthier meals too. Once again, the Arabic cuisine such as the hummus and olives with flat bread was excellent. 8/10

ENTERTAINMENT: From the wide screen television to the noise cancelling headphones, Emirates shows its class from the moment you arrive. Add in a wireless remote control tablet and over 600 television channels and you've got one of the best systems going. For me the standout was the quality of the Bose headphones which amplified subtleties in albums I have already listened to hundreds of times. Sadly my wifi remote control malfunctioned and the USB stick did not support iPod format content, but I did manage to view my photos as a slideshow. 9/10

OVERALL RATING: 81%
The seat is big and impressive, the entertainment fantastic and the bar a stand-out. Small problems in service and technology hamper the offering, but the Emirates A380 is still one of the best business classes flying.

Biker cove

The following article originally appeared in TravelWeekly Australia

Hong Kong is much more than a big bustling metropolis; it also has some of Asia's finest hiking trails and soft adventure hotspots. Justin Wastnage recently donned a bike helmet and took to the cycle path to find out


Cantopop, the saccharine monotonal pop music that Hong Kong has made its own, is an acquired taste. Yet few of my fellow riders along the stretch of the Shing Mun River that leads out into Tide Cove seem to share my view. For unlike the French, who stereotypically place a freshly baked baguette in their bicycle baskets, Hong Kongers like to use the wire frame to hold a music player. Mobile phones, MP3 players with speakers dangling and even an old-fashioned ghetto blaster were all pressed into action in the cacophony of competing cantopop classics.
I had picked up a bike at Sha Tin, the high-rise development that is firmly ensconced within most visitors' perceptions of Hong Kong. However, Sha Tin is also the start of some 18km of cycle paths that lead almost up to the border with mainland China. As the Shing Mun petered out into the cove, known locally as Sha Tin Hoi, the notions of Hong Kong being a city of hustle and bustle started to peter out too.
<[stk 1]>My guide, Fred, had clearly not been on a bicycle ride for 20 years. I darted off at every twist and turn, only to look around to see him struggling with the gears, brakes and general balance. Once I weaved my way back to his side, he told me of the 200 islands that make up Hong Kong. Only one, Hong Kong Island, was formally conquered by the British. The rest were all the New Territories leased to Britain before famously being handed back in 1997 when the lease expired.
Most of the New Territories are still relatively natural. There are even some uninhabited islands where cars and people are banned, Fred tells me between wheezes. Few people think of Hong Kong as a countryside destination, he says, but deep inside the New Territories there are hiking trails, waterfalls, wooded ravines and sandy bays that are all relatively deserted.
The Sha Tin cycle path is not one of these undiscovered natural gems. Being a Sunday in August, the two-way track is packed full of leisurely families pedalling their way around. In search of tranquillity, I press Fred onwards past the crowds and up to the mouth of the Pacific Ocean. Here was where the fortunes of the opium trade were once made and lost in epic gunship battles, he says.
Nature is also close at hand on the island itself. Thousands take the Peak Tram every week and the Peninsula Hotel group (which incidentally owns the tram) would prefer if everyone took advantage of its newly built viewing platform and adjoining amusement arcade. A far more rewarding, if slightly more strenuous option is to take the Peak Circle Walk around the top of the mountain. Starting off along Lugard Road, the track narrows as it gets further away from the funicular terminus and nature starts encroaching.
Hong Kong is a tropical city, although you'd never know from the air conditioned malls, but up here you can see the vines and lush forest trying to reclaim the real estate. Signs posted around the 3.5km walk tell you about the local flora and fauna, but modernity is still the real drawcard: views of the city skyline from 400 metres above are worth stopping for, especially around dusk. As I stroll around, some power walkers and joggers zoom past on morning constitutionals. Thankfully, each of their iPods is playing their choice of music for their ears only.

Glo-bustin the gloom

This article originally appeared in TravelWeekly Australia

Big interview: Stewart Williams, Globus Family
The Globus Family has some of the biggest names in escorted touring in its portfolio. Yet this was not enough to save it from the massive bookings collapse that affected the industry this year. However, as Justin Wastnage writes, the group has bounced back and is geared up for a strong 2010

If you jump first, you have to be pretty sure of a soft landing. When the Globus Family of brands launched its nine-day fortnight plan in the height of the travel bookings slump, some rivals assumed it was heading for a fall. Instead, after only a few weeks of depressed sales, the full five-day week was re-introduced, much to the chagrin of many Globus staff who had planned days off only to have to cancel.
When I meet Stewart Williams, Globus Family's managing director for Australasia, he is in an ebullient mood. The company not only survived the crisis, but has come through the other end with a bullet, seeing its earlybird offers over-subscribed and business up 240% on last year's numbers.
Not that 2009 was a bed of roses. The nine-day fortnight was a necessary reaction to a dramatic drop in bookings, he says. "When the global financial crisis hit we were down 40% but now we're back to being 22% down, which is not bad all things considered," he says. He adds that comparing 2009 against 2008 was always going to be tricky as 2008 was a record year, as was 2007.
After a disastrous start to the year, with Australians fearing the worst and holding off from booking, the cost saving measures were introduced in April. "We cut non-essential activity but were resolute we would have no redundancies," Williams says. However, after battening down the hatches and budgeting for a 40% drop in turnover, "lo and behold we started to climb back out in July and August," he says. By September bookings were actually up on last year, Williams adds. "We'll end the year 21% down, but if you'd asked me in April, I would have been chuffed with 30% down."
Globus is a Swiss company and when Williams compares his region with the rest of the world, he also feels he got off lightly. The US and Canada "got hammered" and the main operations in Europe were depressed. This has a knock-on effect, since Globus owns and operates the coaches that form the backbone of its core brands.
But as a general sales agent Williams just concentrated on defending his home market. Five years ago Globus was trailing competitors Trafalgar Tours and Insight Vacations in market share, he admits. He claims it has edged into second place ahead of Insight since then, albeit still a long way behind Trafalgar. Cosmos is also number one in market share in the budget sector of escorted touring.
Additionally, Globus and its river cruisingsister company Avalon Waterways won best tour and cruise operator in this year's Australian Federation of Travel Agents awards. Williams credits this to a renewed focus on customer service. Hesitant to draw any direct comparisons between Globus and its competitors, he says obliquely that, "we decided to improve our service levels. At the same time others were having problems with their reservations systems, telephone staff and response times, which we could capitalise on."
He says efforts made during that period have stood the reservations team in good stead for the downturn. "Everyone understood what was needed and why the cutbacks were necessary, but we had a target of sales to reach and the very next day after that was reached, everyone went back to normal work rosters," he says.
However, it was not the downturn per se that worried employees, but the uncertainty, he says. For this reason Globus has invested its own money in making the earlybird deals attractive this year. Airlines were already working at pared-back yields and were unable to move as far as Globus wanted, so the company had to dig into its own profits to ensure that the idea of booking early to net a bargain re-rooted itself in the public's mind. "It's not good for agents and it's not good for us if people start thinking the best deals are to be had booking at the last minute," he says.
Next year should be back to normal, Williams claims. Globus is investing in staff again. Customers will still be looking for something extra, he predicts, so value-adds will be a key part of any 2010 itinerary. A relieved Williams knows that whatever 2010 throws at him, it cannot be as bad as 2009.

Saturday, November 14, 2009

Antidote to baby blues

Luxe living ... de Russie Suites lobby. Photo: Justin Wastnage

The article below by Alexandra Smith originally appeared in The Sydney Morning Herald's Traveller.
You can read the article in it original form here.


Hotel review: De Russie suites, Orange, NSW

Alexandra Smith finds pregnancy is no impediment to enjoying a wine region.

Initially I suspect my husband might have scored the better deal when he insisted we spend my last child-free birthday in one of the best wine regions in central-western NSW.

To make the most of Orange's famed cellar doors, he needs a designated driver and what better person for that job than his heavily pregnant wife? After all, I have grown accustomed to my new role as taxi driver.

I must admit, my reluctance is shortlived when we are blessed with an unseasonably warm weekend as we arrive in Orange and simultaneously discover the birthplace of Banjo Paterson is not just about wine and fruit. Or homely B&Bs or ageing motor inns, for that matter.

On a tree-lined street a block back from the main drag, the de Russie Suites is a chic apartment hotel clearly designed to impress the urbanites and appears to be succeeding, judging by the flash European cars in the car park.

The polished concrete exterior resembles architecture from the Stalin era but, once we're inside, the piped lounge music and upholstered chairs arranged by a fire create a soft landing. In the true country way, our welcome is warm.

We have booked the Blue Room, the hotel's version of the penthouse: spacious, opulent and impressive by most standards. We are greeted by a huge bunch of flowers on a pedestal in the lounge room. Once we peer around the imposing arrangement, we find the Blue Room, or 303 as it is also known, is stylishly decorated with a Tuscan influence.

On the four-seater dining table is a bottle of sparkling wine, two Belgian chocolates and a card wishing me a happy birthday. My husband has obviously given the heads-up to management and it's a sweet touch, even if I can't enjoy the bubbles.

The self-contained room, which gets its name from its striking cobalt-blue feature wall, has a separate bedroom with an austere four-poster bed covered in decorative pillows bearing portraits of queens.

The faces do not belong to the British monarchy; my husband convinces me they are probably the wife and daughter of William I of Orange, the Dutch renegade prince who led the war against Spain and reunited the Netherlands.

To read more, please click here to go to the SMH site.

Friday, October 23, 2009

Back to Trafalgar Square one

This article originally appeared in TravelWeekly Australia

Trafalgar Tours is the best known escorted touring company among the public and agents alike. But this has not translated into being recommended above others, so the company is changing tack, as Justin Wastnage reports


Money can't buy you love, as fans of the Beatles know all too well. It is a message that Trafalgar Tours, the largest escorted touring company in Australia, is apparently taking to heart now, too. <[etk]>
The company commissioned research across some 2500 travel agents in ten countries, of which around 1000 were Australian. It found that three out of every five inquiries from customers for a coach tour end without a specific recommendation from consultants.
Of those inquiries where a recommendation is given, Trafalgar seldom is pushed more than others. Other escorted touring brands (including others from Trafalgar's <[stk -5]>Travel Corporation family of brands)<[etk]> have niches, but among <[stk -4]>generalists, Cosmos is recommended<[etk]> to budget-conscious travellers while Albatross Tours has some caché among those looking for tailor-made tours, the research shows.
This is a problem for Trafalgar, which transports more Australians around Europe than any other operator by far. In fact, its tagline used to boast <[stk -4]>of being the world's favourite coach<[etk]> touring company. Indeed, 95% of agents, when asked to name escorting touring brands, <[stk -4]>named Trafalgar, making it the most<[etk]> recognisable brand. The trend is repeated among the general public, with Trafalgar being the most requested brand by customers.
<[stk -8]>But this is true of repeat customers.<[etk]> First timers tend to be given two or three brochures to mull over. Paul McGrath, the practical managing director at Trafalgar Tours has identified as a problem this lack of brand cut-through, as the jargon has it. He senses that Trafalgar is seen as safe and reliable, but a little boring. There is little to distinguish the brand from others in agents' <[stk -5]>minds, he says. APT, Globus, Insight<[etk]> Vacations and Scenic Tours all get muddied in the middle ground, he says. "We are all pretty much in the same space," he admits.
The company is now back on the offensive, launching a new mini-movie and introducing a new tagline, both of which revolve around the joy of the destination, rather than the journey. The most recent slogan, "Dream, pack and leave… the rest to us" was a step in the right direction, McGrath says, but its replacement is more direct. "Rediscover the romance of travelling" complete with a new heart-shaped logo, will be used across all brochures, advertising and internet marketing next year.
For a while Trafalgar Tours has been uncomfortable with the promotion of its actual modes of transport (which now includes trains and sea ferries in addition to the former Uniworld river cruisers). Just as the more innovative airlines such as Air France and Emirates no longer feature aircraft in their adverts, Trafalgar has realised that luxurious as its coaches are, customers want to reconnect with the places they visit. Travel, as the new mantra goes, is about experiences, not how you got there. McGrath points to the company's Be My Guest options to dine with locals, which have become "wildly popular". This year it has been expanded from Trafalgar's Italian and Spanish itineraries into Ireland, France and even the US. "People want to experience something. We have to position our brand so agents know an experience is part of our offering," he says.
Trafalgar now wants to become the first tour company agents recommend. The company has invested heavily in reaching the agents, through sales staff, promotions and commission drives, but this has not yet reaped dividends. "We need to find a positioning that lifts ourselves into a different space," McGrath says. Trafalgar may now find that money may bring it love, if it is better targeted than before.

Friday, October 9, 2009

All eyes on the price

The ACCC has named and shamed three travel agents whose advertisements misled the
public. It is a sign the commission is keeping tabs on our industry, as Justin Wastnage writes

Despite being the “least liked”
airline in the world, Ryanair
has also grown to become
Europe’s second largest. Its
customers are irked, a recent poll
by Tripadvisor found, either by
landing at airports far from the
cities they purport to serve or by a
miscellany of hidden charges.
After many court battles with
Europe’s competition watchdogs,
all European airlines now have to
include in advertised fares any non-
optional fee, such as government
taxes, airport charges, wheelchair
levies, insurance surcharges or
airport security charges.

Here, the Australian Competition
and Consumer Commission (ACCC)
has kept a watchful eye on travel
advertising for some time. In May it
published guidelines specifically
targeting the travel trade, after
changes to the Trade Practices Act
meant the total cost of a holiday,
rather than its components, must
be used wherever possible.
Agents know this question is like
asking the length of a piece of string,
as holidays are made to customers’
requirements. So it came as a shock
when the commission singled out
three agents for legally-enforceable
action over their advertising.

Backpacker agents Wicked
Travel, Peter Pan’s Adventure
Travel and Adventure Travel
Bugs each advertised Whitsundays
and Fraser Island tours for $299,
when that price did not include
mandatory charges such as
insurance, national park fees and
Great Barrier Reef environmental
charges that typically took the
minimum cost up to about $450,
the ACCC says.
The watchdog was spurred into
action by mass-market, price-led
packages. In its guidelines it cites a
10-day Get Hot in Hawaii package
offered by a retailer at the end of

last year for $799. On top of this,
the customer would have to pay an
airfare with taxes and charges,
taking a realistic total to $3099. The
package advert would “raise
concerns” under the new regime,
the ACCC says.
Despite airfares varying widely
to Honolulu, travel agents will be
expected to advertise a total
price, albeit with a ‘subject to
change’ caveat allowed. In reality,
few cases will be as clear cut as
the budget tropical Queensland
tours, but by firing a few warning
shots, the ACCC is letting us
know it is watching. n

This is child's play

This article originally appeared in TravelWeekly Australia

I
mitation, they say, is the <[lb]>
sincerest form of flattery. So
when a competitor enters the
niche that you had carved out as
your own, it can be taken as<[stk -4]> proof
that an idea has worked. <[etk]>

Thus the news this month that
the travel agent affinity group
Travel With Kidz (TWK) is to be
joined by BYOKids (BYO) goes
some way to proving both the
concept of affinity groups and the
sheer market potential of family
holidays. Both TWK and BYO offer
agencies the chance to specialise in
this niche by way of co-opted
marketing that runs alongside the
store’s existing branding.

Look at the data and you can see
why. The Australian Bureau of
Statistics underlines what most
people would guess: the majority of

<[stk 3]>Australians still live in families of
two parents with children and
the proportion is rising again
after dipping down to 52% in
2001. Additionally, some 12% of
the population live in single-
parent households. By contrast,
only around one-fifth of
Australian households are the
dual-income couples so often
courted by advertisers. <[etk]>

But despite being a massive
market, little has been done
traditionally for the family segment
of fully-independent travellers (FIT).
Family holiday packages for too
long revolved around resorts on
the Gold Coast, in Fiji or Bali with
more adventurous families
relegated to doing their own
research, explains Wendy Buckley,
TWK managing director.


<[stk -4]>She says there are also new travel<[etk]>
trends, such as multi-generational
travel with grandparents tagging
along, or blended families where
two divorced parents bring their
combined offspring together for
one vacation. These kind of larger
groups present unique challenges,
but also are much more likely to be
booked through agents than via a
website, she says. <[stk 0]>“Those people
who want Gold Coast resorts are
price-driven and will just shop
around until they find the best
deal, but there’s a whole group of
parents out there who want to
take their kids on meaningful
holidays,” she says. <[etk]>

The lack of interesting family
holidays was the one that David
Tonkin, former founder of the first
Sydney Flight Centre, Just Flights

and travel.com.au, came up against
when booking his family holidays.
In 1996 he founded TWK as a niche
division of Travel Specialists
Mosman, a Travelscene American
Express (TSAx) agency. The
clientele in the affluent Sydney
North Shore
suburb were
experienced travellers who were
not going to be limited by having
had children, Buckley says.

But three years ago TWK took
the step of franchising its brand out
to other agencies. Affinity groups
had long existed among specialised
wholesalers and products (such as
Club Med’s dry resort weeks aimed
at Alcoholics Anonymous
members, wheelchair-friendly tours
of the Holy Land or the
NaviGaytion cruises aimed at
homosexual men). But branding
travel agencies as specialists was a
new concept. The US-led Virtuoso
had emerged in Australia as a
badge of honour for high-end
travel consultants, while CruiseCo
was an extra shingle agents who
specialised in cruising could hang
above their desk. As part of this
wave, TWK decided to license out
its brand to those agencies
specialising in family holidays.

“There are great Trafalgar Tours
trips to Italy where kids can dress
up as gladiators when they visit the
colosseum, or you might want to
take your teenagers to Angkor
Wat,” Buckley says. Having an
expert to turn to about the product
available for families was what
appealed to the 48 agencies who
have become TWK-licensed
affiliates, she adds.

TWK also collates product
information and vets it for child-
friendliness, suitability and child
safety, giving it a star rating. TWK’s
entry criteria are straightforward.
The agency must dedicate two staff
to selling family holidays, one of
whom must be a parent. TWK
charges a $400 monthly marketing
fee which covers TWK stationery,
website buy-in and signage, plus
around the same again in
membership. Members are given
access to training in specific family
holiday matters such as vaccination
requirements for toddlers to

general sales tips like listening
skills. In this way TWK augments
the role of the franchise group,
Buckley says.

<[stk 0]>In mid-September the Sunshine
Coast-based Travellers Choice
agency Tewantin Travel threw its
hat into the ring, announcing a
plan to license its BYOKids
concept to other agencies. Its
founder Leah Squire has an
ambitious plan to sign up 100
agents within 12 months. <[etk]>

Essentially BYO is a similar
proposition to TWK, albeit “not
<[stk -4]>aimed at the high-end,” says Squire.<[etk]>
“We sell anything, anywhere, from
cheap-and-cheerful to luxury,” she
adds. Around 70% of TWK
members are drawn from TSAx,
although there is no formal link to
the Stella Travel Group. Squire says
that while BYO “will be open to all
agency owners” TSAx is likely to
form a smaller proportion.

BYO has a $400 monthly fee,
which gives access to the 1300
number, similar to TWK. Where
Squire thinks her proposition has
the edge is in web marketing. <[stk -1]>The
author of an internet marketing
book, Squire says the idea behind
expanding BYO came from
attending a national travel
conference where franchisees
were complaining that their chains
did not have an effective enough
internet strategy. “They were
saying, ‘we don’t have Twitter, we
don’t have Facebook and we don’t
even have a good website’ so I
knew there was a niche.” <[etk]>

Family travellers often do more
research online, but many then go
to a bricks-and-mortar agency to
book, Squire says. It will be up to
the independent agencies that join
to convert the leads provided from
the website, she says. BYO has less
strict joining criteria, although
Squire says they will prefer agents
who are also parents themselves.
“They should have first hand
experience of travelling with kids,”
she says. BYO also mailshots 20,000
customers who have registered on
its site as being interested in
travelling with children and in time,
each inquiry at head office will be
routed to the relevant suburb.





“Access to the list justifies the
monthly fee in itself,” Squire adds.

<[stk 0]>The online lead generation is
also a theme taken up by Holidays
With Kids magazine, whose
electronic distribution list has
been used to promote wholesalers
and properties directly via a click-
through advertisement. <[etk]>

TWK goes closer into the
franchise model with parallel
preferred arrangements with 13
wholesalers, including Tempo
Holidays, Sunlover and Island
Escape, complete with overrides
unique for all bookings including at
least one child. It also holds an
annual meeting for all its agents to
get together and swap notes.
<[stk -2]>Destinations are courting the
group such is the level of business.
Each preferred wholesaler has to
add some new child-friendly
product into its offering each year
to retain the TWK deal, Buckley
says. “They have to complete a
checklist with us on things such as
<[etk]>kids’ clubs, food availability,
bedding configurations,<[stk -2]> emergency

contacts and all th<[etk]>e other things
that parents will ask us,” she says.

The company also worked with
child protection agency Child Wise
on a questionnaire aimed at vetting
child carers overseas. The
questionnaire checks whether the
<[stk -4]>staff employed to look after children<[etk]>
are qualified carers or “off duty
massage therapists,” Buckley says.
All online airlines (except Qantas)
have completed a questionnaire on
child seats, child-friendly in-flight
entertainment, boarding
procedures and transit times. It is
this level of service for families that
Buckley believes will keep them
coming back to TWK agencies.

Squire agrees. “This is not about
providing an agency with one
customer via an online lead
generator; it’s about providing
agencies with a customer for life.
They will refer friends and come
back for a holiday every year,” she
says. In these days of niche finding
for agencies, there is no greater
proof of a trend than when more
companies jump on.

What's the big ID?

This article originally appeared in TravelWeekly Australia

Last year identity theft cost Australians $1 billion. Travel agents have been singled out as a high risk profession, due to the personal data they hold, as Justin Wastnage writes


Travel agents like to be considered alongside other <[etk]><[stk -5]>consulting professionals such as<[etk]><[stk -3]> solicitors and <[etk]><[stk -5]>doctors. But they <[etk]><[stk -8]>mightn’t<[etk]><[stk -6]> be happy to find themselves<[etk]><[stk -3]> on a new watch list for businesses most at risk of identity theft. <[etk]>

Crime Stoppers Australia, a national body liaising between state and territory police forces, held the first National Identity Fraud Awareness Week from October 5 to 9, highlighting the risk of identity theft. Small businesses are placing their customers and staff at risk through the sloppy handling of sensitive personal information, the body’s chairman Peter Price has warned. Travel agencies are listed as high risk small businesses.

And the risks are indeed great. In 2001 a man used up to 50 false identities in a $7 million property fraud spanning Victoria, New South Wales and the Australian Capital Territory. The offender and an accomplice used the false identities to obtain a series of home loans from banks and financial institutions. The police traced most of the stolen identity back to old-fashioned “dumpster dives” rather than electronic fraud. Of the half-million Australian identity theft victims last year, one quarter were the result of their details being obtained in physical form.

Vanessa Coussias, product manager at shredder manufacturer Fellowes Business Machines says that in Australia paper-based fraud is still more pervasive than electronic fraud, but receives less attention than high-profile phishing scams. The reason why travel agencies can be a target for identity thieves is because of their combination of identity documents and financial data. “A passport, for example, is worth 70 points in a bank ID check, so you only need one credit card number to reach 100,” she says. Biographical data held by agents can bolster identity thieves’ stories when challenged by financial institutions.

In the US, the civil liberties group New York Public Interest Research Group has already questioned the amount of personal data collected by the travel trade. Its survey of 275 airlines, travel agencies, hotels and car-rental firms found that many of them ask for an “excessive amount” of personal information in the process of making a sale. “You <[lb]>have to share a lot of personal information to book a flight or a hotel,” Jeff Starr of the research group said. “If that information isn't treated correctly you could be at risk of ID theft.”

Peter Campbell, national marketing manager of Fellowes Australia, says that businesses are inadvertently fuelling the boom in identity fraud, Australia’s fastest growing crime. “Detailed biographical information on customers and employees taken from invoices, statements, pay slips and old personnel documents commonly found in business rubbish can be worth their weight in gold to identity thieves,” he says.

Armed with passenger travel dates, thieves can commit the fraud <[stk -4]>while clients are on holiday. This has<[etk]> a double attraction because credit card preferences are relaxed by card holders and the fraud has more chance of going undetected, Crime Stoppers Australia says.

Coussias recommends all travel agencies invest in a high-tech shredder to deter thieves from fossicking in their garbage. Handing documents to clients in person wherever possible can help too, she adds. Only 30% of households in Australia have shredders, compared with 60% in the US, where identity theft is more prevalent. Shredders now can dice an A4 sheet into 700 spots of confetti, she says.

There is good news for agents, however. Mike O’Mally, Chicago travel agent and spokesman of the American Society of Travel Agents, says consumers are now more wary of buying from online agents offering cheap fares for fear of identity theft. Rogue sites exist that solicit extra personal information <[stk -4]>such as passport numbers and birth<[etk]> <[stk -4]>dates. If an online company asks for<[etk]> that information it “should send up <[stk -6]>a red flag for the consumer,” O’Mally<[etk]> says. Bricks-and-mortar agencies who employ good data disposal methods can exploit this fear. <[lb]>But as well as a commercial imperative for better identity document protection, there is also a legal requirement, Campbell says. The National Privacy Act specifically regulates how the private sector handles the collection, use, storage and ultimately disposal of personal information. “Too often we hear in the media of yet another business that has carelessly discarded highly sensitive customer and employee information, he says.

In some cases, sensitive materials are disposed of in recycling bins <[stk -5]>meaning thieves don’t even get their<[etk]> <[stk -4]>hands dirty to steal people’s <[etk]><[stk -5]>identity.<[etk]><[stk -4]> “It is crucial that businesses<[etk]> educate their staff about the safe disposal of sensitive information,” he adds.

The law states that a company must take reasonable steps to destroy or permanently de-identify personal information if it is no longer needed. “Shredding is not only the easiest and most cost-effective way for business to comply with the law, it’s the only way to ensure that someone’s identity doesn’t fall into the wrong hands,” Campbell adds.

Other steps to protect your agency from being the source of ID theft are to check the identity of both consumer and business customers via credit reference <[stk -4]>agencies; limiting access to sensitive<[etk]> documents only to agency owners and managers; and to inform staff about the risks of corporate identity fraud. Businesses should also ensure that their firewall and anti-virus software is kept up-to-date.

So when it comes to sensitive information handling, travel agents may not want to join the illustrious company of lawyers and doctors.

Thursday, October 1, 2009

Hong Kong Made to Measure

This article originally appeared in Luxury Travel & Style Magazine Spring 2009 issue

OUR IMPERFECTIONS, IT SEEMS, ARE MERELY DETAILS IN THE HONG KONG BESPOKE PRODUCER'S GOAL OF MADE-TO-MEASURE PERFECTION, WRITES JUSTIN WASTNAGE.

It is not customary to point out physical defects of customers, least of all if you are trying to sell them clothing. But Manu Melwani is a little different.
I am standing before him and he tells me my right arm is five millimetres longer than my left. A common enough problem, he reassures me. Melwani, whose father Sam opened his eponymous tailor shop in the bustling back streets of Kowloon fifty years ago, is not one to stand on ceremony. His rich and famous clientele, most of whom are displayed in photographs on his pokey shop's walls, do not have time to stand around for the endless alterations and fine tuning your Savile Row tailor might wish to make. John Howard and Mark Latham both attest to having had garments made to measure at Sam's, as do Bill Clinton, David Bowie and, inexplicably, Kate Moss.
Instead Melwani has to size you up from the start. “You prefer not to wear a tie, you generally don't button up the jacket,” he asks rhetorically as a seamstress
is measuring my inside step.
There is nothing quite like a made-to-measure suit to flatter unusual body shapes and hide life's excesses. Normally, though, it is price that drags us
back to prêt-à-porter. But Melwani's team of tailors will generally whip up a suit, with an extra pair of pants, and a few hand-tailored shirts for $500.
Hong Kong used to be the capital of copying. The then-British outpost was doing a roaring trade in knock-off bags, watches and t-shirts. But for the more discerning customer, these days Hong Kong's industrious artisans are put to much better use than clumsy counterfeits. Highly skilled jewellers, milliners and shoemakers can make almost anything to measure.
An auspicious event looming in my life, I had investigated the opportunity of having a diamond eternity ring hand made for my wife. Rushing back to Hong Kong Island by metro (far quicker than any other method, but lacking the romance of the Star Ferry), I sidestepped the lunchtime crowds to reach Central. Emailed correspondence ensured that by the time I entered the premises of David Kingsboro, a discreet jeweller upstairs in a nondescript shopping mall, Cynthia Chan had already picked out twelve quarter-carat diamonds and dispatched preliminary sketches to her silversmiths. I was invited to inspect each one for flaws and told to return in two days to pick up the ring and settle up.
Just around the corner, via the Hong Kong franchise of Harvey Nichols, is Admiralty, where inspiration torn from a magazine page can be recreated into a pair of hand-stitched, leather-soled killer heels that fit your feet like a glove at Lii Lii Shoes. A friend tells me to ignore the Russian hooker footwear piled up around the untidy premises and to focus on the sublime experience of having every millimetre of your foot mapped.
A crooked toe, just like a shorter left arm, is no longer the domain of schoolyard freak shows. Our own imperfections, it seems, are merely details in the bespoke producer's goal of made-to-measure perfection.

------------

LUXE LIST
Lii Lii Shoes, set over a few stores in the Admiralty Centre, will
make custom ladies’ footwear from HK$1800 (A$280) per pair. Allow one week.
Shop 75, 1st Floor, tower 2, Admiralty Centre, 18 Harcourt Rd, Central

Sam’s Tailor, a formal wear institution, sits just off Nathan Road in Tsim Sha Tsui.
Beware of numerous touts en route pushing imitators. Suits from HK$2000 (A$310), allow three days.
Ground Floor, Burlington Arcade, 94 Nathan Road, Kowloon www.samstailor.biz

David Kingsboro has a very secure shop right in the heart of the luxury part of Queen’s Road. Jewellery custom made either to order or after consultation. Allow
two weeks from scratch, or one week if pre-arranged via email (davidkingsborojewellery@yahoo.com.hk)
Shops C & D, 2nd Floor, Entertainment Building, 30 Queen’s Road, Central

Friday, September 25, 2009

Horsing around in Ferraris

This article originally appeared in TravelWeekly Australia

Driving Ferraris has become a top corporate team building exercise in Sydney. Justin Wastnage recently took four of the red super cars for a test drive







Speed, they say, is not everything. But not to one West Australian automotive
journalist clocked at over 225km/h a few weeks back. He copped a $2000 fine and six-month ban for driving a Ferrari F149 California at twice the speed limit.
I am reminded of the speed limit as part of the briefing given by Prancing Horse, the driving tour
operators whose Ferrari corporate drive days
have grown fourfold in the past year despite the recession.
I will soon be given the keys to one of four turbocharged luxury sports cars and will have a chance to drive each one by the end of the day.
That’s about a million dollars’ worth of hardware they are entrusting to me, which is why I, along with seven others, am listening intently to Matt Thio, business development director of Prancing Horse over early morning Italian coffee and pastries in the firm’s ‘stables’ in Marrickville, Sydney.
Its location makes for easy access to the state’s Royal National Park, which in turn winds its way to the Grand Pacific Drive, New South Wales’s coastal road stretching down to Wollongong. The highlight of the tour is the Sea Cliff Bridge section of the Lawrence Hargrave Drive, the $52 million cantilever bridge that runs along the cliff face, suspending you in mid air above the crashing waves. Again, the speed limit of 60km/h is observed.
In truth, there are sections where the drivers can open the cars to something like their full potential. I had mine accelerate from 30 to 125km/h in a little under four seconds. But the real beauty is in the cars. I am in a Ferrari F430 Spider, behind me are an F360 Spider, an F355 Spider and my favourite, the fully-manual F328 GTS, as popularised by Tom Selleck
in Magnum PI. Each can draw admiring looks from bystanders.
Most bookings Prancing Horse takes are for corporate events and team-building. The company is actively promoting the drive days on the weekends, not only to men, but increasingly ladies’ days out (the two-day spa packages staying at the Gerringong boutique hotel Bellachara are popular with “second marriage hen parties”, Thio says.
The company also has plans to expand the fully-commissionable product to Victoria’s Great Ocean Road and possibly an as-yet undisclosed location on the Gold Coast. Anywhere there is a road and a speed limit, it seems. ■

Details: A one-day package costs $990 per driver, two days with a night at Bellachara starts from January, priced at $1490. All products are commissionable at 10%.
Contact: www.prancinghorse.com.au or 1300 307050

Seat review: Singapore Airlines A380 SYD-SIN

Article originally appeared in TravelWeekly Australia BUSINESS TRAVEL & MICE supplement

Seat review: Singapore Airlines
Singapore Changi Airport to Sydney Airport
Airbus A380-800 business class

LOUNGE: An amazing shower with horizontal as well as vertical jets is worth the admission alone, but the buffet is another strong selling point. It features superb cuisine from Singapore’s three main cultural influences (namely Indian, Chinese and Western) and it is brought out freshly. Draught beer, a host of big screen televisions, free wi-fi and lots of seating also contribute to make this an excellent lounge. 9/10

SEAT: What can be said about the amazing Singapore Airlines Airbus A380 business class seat? Firstly, it is so wide that two could sit side by side, such is its breadth. It also has amazing storage space underneath the seat in front, meaning that very few will have any need to use the overhead compartment. There are a myriad of stowage spaces and fold-down shelves for drinks and the like on the panel in front. The lie-flat bed is so vast you can roam around and toss and turn rather than lying head up only. This is truly the new standard of comfort for the business traveller. 10/10

SERVICE: Singapore Airlines is well known for, and justifiably proud of, its personal service. A
minor visa issue had staff working on my behalf contacting Canberra while I relaxed – all very
professional. Similarly, orders were taken prior to take-off, to speed up service afterwards. For
some Australian sensibilities, the service may appear a little fawning, but no request is ever
refused and my visa issue illustrated perfectly the lengths staff go to to ensure an excellent
experience. I found the service very hard to fault. 9/10

EXTRAS: Passengers are presented with amazing noise-cancelling headphones that eliminate the minimal cabin noise as soon as you switch them on. There is no amenity kit, instead,
socks are handed out along with a fairly thin eye mask and the rest can be found in the bathroom, where L’Occitane skin products are on hand. It is a new take on the standard offering and it works very well. 8/10

FOOD: Singapore has engaged chefs from around the world, including Matt Moran, Gordon
Ramsay and Georges Blanc to help customise their in-flight menus. A signature dish of cod
with sautéed mushroom showed off Singaporean cuisine well while the wine list shows a new world bias for whites and a distinctly classic view on the reds. 9/10

ENTERTAINMENT: A huge choice of film and for those who are prepared, an option to plug in a USB stick to play your own choices of MP3s and video files. KrisWorld is easy to navigate and looks good. The black LCD screen makes for great contrast and picture quality. 8/10

OVERALL: Quite simply, this is the best business class offering we have tested. No one element is disappointing and Singapore Airlines have raised the bar for the rest of the world’s airlines. 88%

Hotel Check - Horizon Deluxe Apartments, Stanley, Tasmania


The north west of Tasmania has Australia’s cleanest air and least
crowded roads. It is also stunningly beautiful and as Justin Wastnage
writes, one new serviced apartment gem in the historic town of Stanley
makes the most of the natural assets

HORIZON DELUXE APARTMENTS

First impressions: 7/10
Horizon has an enviable position set in
lush farmland overlooking the town of
Stanley on Tasmania’s north west coast.
However, this area is also out of mobile
phone range for most networks,
rendering the manager’s voicemail with
entry codes irrelevant.

Accommodation 8/10
The two apartments (named Tatlow
and Godfrey) are mirror images of
each other in layout, but strikingly
different in décor, but both have a
wow factor. Tatlow is a modern white
interior with beige and brown details,
while Godfrey is a relaxed design of
blues and greens and frosted glass.
There is music playing in each,
reflecting the respective mood.

Service 7/10
Horizon is aimed at self-drivers who
let themselves in and leave the key
when they depart. The reception is
down at the sister property the
Seaview Inn, where the owner was
very honest about the relative
charms of his own, admittedly
excellent, Nut View Restaurant
compared to the local pub on a
quiet Tuesday night.

Facilities 9/10
A self catering apartment too often
lacks a good nearby shop. Horizon
provides a very complete breakfast kit
to save the early morning scavenge.
Similarly, a barbeque pack of assorted
meats is found in the freezer. Both
apartments have good, if complex,
home cinema equipment including a
small library of DVDs and satellite
television. The amazing rain shower in
the bathroom rivals the jacuzzi as the
best way to get clean in comfort.

Ambience 9/10
The centrepiece of each apartment is
the jacuzzi set in the middle of the
room, alongside the bed. The layout, of
both the apartment complex and the
bath, optimises the view. Stanley’s
main attraction is The Nut, a large
headland jutting out into Bass Strait.
The views at Horizon are unmatched.

Overall 80%
This property was built from scratch on
arguably the best plot of land in Stanley.
The views of the wild north west coast
are to die for and the attention to detail
in furnishings is commendable. Book
your funkier clients into Tatlow, the
more traditional into Godfrey. ■

Horizon Deluxe Apartments has a twonight
Tarkine & The Edge Of The
World package including a Tasmanian
produce picnic hamper, Stanley Nut
Chairlift passes, two nights à la carte
dinner at The Nut View Restaurant
and two nights’ accommodation for
$899 for two people.

Agents in the driving seat

The article originally appeared in TravelWeekly Australia

GDS provider Sabre Pacific launched a sophisticated analytics tool in Australia this
month that it claims will help agents wrest control of bookings away from airlines.
As Justin Wastnage writes, some travel agencies have already done so

Sir Richard Branson was the
keynote speaker at July’s
Flight Centre global
gathering in Barcelona. The British
tycoon is invited to speak at lots of
events, but this conference was
sponsored by both British Airways
and its Australian buddy Qantas to
the tune of half a million dollars.
Flight Centre’s famously
competitive chief executive Graham
‘Skroo’ Turner was sending a
message that no airline can assume
a cosy relationship with his group.
After a nine month sabbatical, his
first task back at the helm in April
this year was to sever the chain’s
ties with Singapore Airlines,
causing the carrier to scuttle back
with better commercial terms.
Conventional wisdom has it that
only Skroo has the power to turn
off airlines at whim. But this month
Sabre Pacific, the largest global
distribution system (GDS) in the
Americas, launched its Contract
Optimization add-on that it claims
will give mid-sized corporate
agencies the same power.
“Travel management companies
have let the power drift away to
their clients through policies and
to airlines through technology,”
said Richard Morgan, Sabre’s
general manager for sales,
marketing and product.
Essentially a complex bookings
analysis tool, Contract Optimization
has been trialled by a US corporate
agency Travizon, who used it to
divert sales to secondary preferred
airlines once targets with primary
preferreds had been met. It earned
10% more overrides and reduced
clients’ corporate spend by 5%.
Gai Tyrrell, Sabre chief executive
in Australia suggests airlines will
not be happy with this kind of
automated sales tool, but says “it’s
time power returned to agents”.
Other GDS suppliers are
working on similar tools, which will
form a key part of the tough
negotiations taking place this year.
Morgan says the additional cost of
the tool will be reimbursed if an
agency does not increase overrides.
The GDS providers have more
bells and whistles up their sleeves,
notably new mobile phone versions
of their web itinerary tools. The
GDS companies are hoping agents
will seize the opportunity to shift the
relationship more in their favour. ■

Godfrey’s Virgin Blues

The following article originally appeared in TravelWeekly Australia

Virgin Blue was once the underdog of the Australian airlines. Brett Godfrey, its outgoing chief executive, laid out the lessons he’s learnt from his nine years and detailed where he sees the airline heading in a recent speech. Justin Wastnage reports

Virgin Blue was once the underdog of the Australian airlines. Brett Godfrey, its
outgoing chief executive, laid out the lessons he’s learnt from his nine years and
detailed where he sees the airline heading in a recent speech. Justin Wastnage
reports
Fans of David versus Goliath tales often recount the history of the Japanese automotive industry. In the 1960s, their output of small,
affordable cars was derided as “Jap crap” but over time Japanese marques not only caught up with US and European manufacturers but
overtook them. Toyota’s Lexus is now the top selling luxury car in the US.
Brett Godfrey, the effusive chief executive of the Virgin Blue group, addressing the National Aviation Press Club in Sydney this month,
likened his own company to a tortoise, patiently plodding on its race against Qantas’s hare.
By some measures Virgin Blue has already overtaken its rival. “We now have more daily departures than any other airline in this market,” he
crowed.
Geoff Dixon, the former chief executive of Qantas group, used a swansong speech to outline some facts about the airline he was not at liberty
to discuss while at the helm of the national carrier. Godfrey, looser lipped at the best of times, set out his own vision for the future despite having
at least 15 months of his tenure left to run.
The business was written off by many when it launched in 2000, and many (chiefly Dixon, Godfrey says) have continued to predict its demise.
Yet the company is alive and well in 2009, a period which Godfrey calls “the most taxing, challenging, vexing and most unexpected 12 months in
my 22 years [of aviation experience]”.
The group launched its long haul arm V Australia at “possibly, in retrospect, the worst time” he says, but is predicting a profitable return in the
next financial year.
But the recession hasn’t been all bad news for Virgin Blue. Two recalcitrant markets, corporate and governmental, have been forced through
economic concerns to try the second carrier. The airline has added a frequent flyer program, lounges and premium economy in the past four
years as it has evolved into a full service carrier, but too many still perceived it as a low cost carrier, he bemoans. “They have now tried us and
our polls show most will come back,” he says.
A federal government tender is also up for renewal in November and is no longer looking like a shoo-in for Qantas, he adds.
Godfrey plainly admits that if the company had stuck to its no-frills model, it would no longer be Virgin Blue
around today. Its rival, “padded by international monopolies” would have had deep enough pockets to price it out of the market, he asserts. Now
V Australia is chasing new international routes to countries willing to open up their airports to a second Australian carrier. Hence V extending
its reach beyond the suddenly hotly-contested trans-Pacific to the predominantly leisure destinations of Bali and Phuket. South African services
from Melbourne will also be launched in time for the soccer world cup.
Another milestone in the airline’s internationalisation is its alliances with other carriers. At the press club lunch Godfrey signed a new interline
deal with Richard Jewsbury, Emirates’ senior vice president, commercial operations Far East and Australasia, for continuation of services over
the Tasman. Godfrey said the deal further underlined its plan to be
“aligned with a non-aligned carrier”. This, along with its yet-to be-approved joint venture with Delta Air Lines, was meant to scotch persistent
rumours that it was looking to join Star Alliance.
The next stage in the airline’s evolution is under wraps. The airline has a team looking at “the airline of the future” that will exist in a world
where “Star Alliance Sydney or Etihad Australia” may exist once trade barriers have further broken down.
The ultra-low cost airline subsidiary, an idea bandied around ever since Jetstar was launched, appears to have been ditched in favour of the
possible introduction of a “third class” cabin down the back of existing cabins.
Godfrey also pines for the day when his four brands (Pacific Blue and Polynesian Blue complete the line-up) are united under a single brand,
something that has eluded him in nine years due to territorial problems with the Virgin name.
The only thing to which Godfrey will commit is the demise of paper boarding cards, which will likely be replaced with two-dimensional
barcodes on mobile phones. Innovation and staying ahead of the game is his mantra. Without that, the company “risks ending up like Chrysler”,
once the strongest of the venerable Detroit trio of car makers, but now reduced to being a part-Italian owned government subsidised shadow of its former self, he says.
Backing Goliath, it seems, is not always the best option.

Myanmar-ed by controversy



This article originally appeared in TravelWeekly Australia magazine

Burma has been off-limits to travellers for ethical reasons for decades. But there appears to have been a subtle shift in the opposition to visiting of late. Justin Wastnage reports from Rangoon

Lovers of more exotic travel destinations will have been warmed by news that Aung San Suu Kyi, the Burmese opposition leader, has recently dropped her opposition to tourism. For several years Burma has been among the highest profile of rogue states, due to its thuggish military rulers.

Nobel Peace Prize recipient Suu Kyi, who has been kept under house arrest for much of the 19 years since her National League for Democracy (NLD) won a thumping 82% in the last election, has main tained that tourists should stay away. “Burma will be here for many years, so tell your friends to visit us later. Visiting now is tantamount to condoning the regime,” she said in 1995.

Yet tour operators on the ground in Burma (or Myanmar, see box below) have been lobbying for greater numbers of tourists, who bring much-needed money into the hands of ordinary Burmese people.

WHAT'S IN A NAME?
Burma or Myanmar? Rangoon or Yangon? Like Mumbai and Beijing before it, the government of Burma decided in 1989 to rename its country Myanmar, as well as changing several city names. The name is more inclusive, since the Bamar, or Burmese only account for around 80% of the population. But since most countries do not recognise the government as legitimate, most (including Australia) still refer to the country as Burma.
Most of the Burmese people (including the stridently anti-government) prefer the term Myanmar, although Aung San Suu Kyi’s National League for Democracy prefers Burma.

Whether Suu Kyi did indeed call for a scrapping of the tourism boycott is moot, as she is banned from speaking publicly. But many within the NLD want tourists. So the fact that ‘The Lady’ might have u-turned has re-opened the debate on whether tourism could help the country more than it hinders.

One thing on which all commentators agree is that the military junta is a vile lot. The State Peace and Development Council, as it calls itself, holds tens of thousands of political prisoners, bans free speech and has forced up to half a million people from their homes.

Even Sylvester Stallone cast the Myanmar regime as the ultimate baddies in the latest Rambo film.

Australia, along with the European Union and the US, has imposed trading sanctions on the country, although the Department for Foreign Affairs does not support a tourism boycott.

But like Cuba, the isolation has left the country as a time capsule. It is a perfectly-preserved slice of pre-tourism South East Asia.

True, the former capital city Rangoon (officially Yangon) is dilapidated and shabby, but has Havana-esque charm. Outside, the country is also stunningly beautiful.

David Mathieson, Burma researcher at Human Rights Watch (HRW) sums it up by saying: “Burma is not just a human rights disaster, but a fantastic place with great people.” The Buddhist relics, temples and ruins that dot the land are unrivalled in South East Asia.

The history of this quintessentially Indochinese land, is far richer than the popular destinations of Vietnam and Cambodia, says Karen Hogue, a US travel agent who specialises in the region. Inle Lake, in the country’s interior, is breathtakingly beautiful in its tranquillity, while the beach town of Ngapali has sun-bleached sands unmatched anywhere else in the Mekong. Pagan (or Bagan, pictured above) was the centre of Theravada Buddhism in the 12th Century and is still Burma's top tourism draw.

The Burmese, too, are a huge asset. With a high level of English proficiency, the courteous, gentle and endlessly patient people of Myanmar are not yet jaded by tourists and appear to cherish every interaction with foreigners.

Yet travellers will have difficulty seeing anywhere beyond the “tourist triangle” outlined above. The shiny new capital city Naypyidaw (which translates as ‘the abode of kings’) is reportedly a marvel of obscenely lavish spending, but foreigners are generally prohibited from visiting. Similarly, maps of the country show many regions, towns and even sections of roads from which non-Myanmar citizens are banned.

Previous generals in charge of the country closed it completely; transforming Burma from the richest in South East Asia at time of independence to one of the world’s poorest. The main aim of the tatmadaw (army) has been to preserve national unity at all costs. It has been fighting ethnic separatist groups since independence from the UK in 1948. “Tourists going to Burma
don’t realise there is quite intense conflicts going on relatively near to where they are,” Mathieson says.

Zetty Brake, coordinator for the Burma Campaign Australia is blunter. Inle Lake, which features on most tourist itineraries, lies in the centre of Shan State, site of much of the ethnic disturbance over the past 20 years. Political imprisonments and disappearances are common and the lake’s shores saw “hundreds bludgeoned to death in 1988,” Brake says.

Burma is not a bad country, but it has bad rulers. This could be said for a great number of tourist destinations around the world, such as Zimbabwe. Leon van Neer, Burma general manager of upmarket destination management company Exotissimo says he had previously been in Syria, where he had become convinced about the positive force of foreign visitors, curbing the excesses of police brutality and opening up the eyes of locals to everyday freedoms.

But tourism to Burma, Brake says, is directly linked to human rights abuses in a way it is not in similarly despotic lands. The International Labour Organization found in 1996 that large numbers of forced labourers were working on railway, road, construction and other infrastructure projects, many of which were related to the government’s efforts to promote tourism. Amnesty International reports as recently as 2008 that forced labour continues, although there is some evidence that its use is not as pervasive as it once was.

The Burma Campaign is the most vociferous supporter of a tourism boycott, enlisting the help of celebrities including Joanna Lumley, Susan Sarandon and Helen Mirren. The campaign has been effective, with a recent poll by the UK’s Guardian newspaper showing that 75% of Britons would not venture into Burma. The group also publishes a “dirty list” of companies that promote tourism, which includes Abercrombie & Kent (A&K), Gecko’s, Jetstar, Lonely Planet, Exotissimo and Shangri-La Hotels.

Yet there is strong debate over whether this blanket ban has been effective. The Free Burma Coalition, a US pressure group comprising expatriate Burmese, reversed its opposition to tourism “after having reviewed the effectiveness” of its pro-sanctions campaigns “against the objective of building an open society back home”. The coalition now fully supports tourism and travel to Burma as part of its support for the emergence of an open society. Mathieson concurs, saying that, “so long as they do research before they go, travellers to Burma can be a force for good”.

Su Su Tin, managing director of Exotissimo Myanmar is a living example of the good that can be achieved. Female entrepreneurs are rare in Burma, but Su Su Tin seized the opportunity that presented itself when the government allowed private companies to form joint ventures with foreign firms in 1995. Kyi Kyi Aye, a spokeswoman for the Myanmar Hotels and Tourism Ministry says there are now 16 such joint ventures and 692 locally-owned tourism ventures,
compared with only a handful of direct government-owned businesses.

But Su Su Tin says the pro-boycott lobby has prevented many potential tourists from coming. “If I go to trade shows or talk to agents, some companies don’t want to include Burma because the business would be small compared to the trouble of fending off the boycott,” she says.

In the Australian marketplace, both Wendy Wu Tours and Intrepid Travel have pulled out of Burma on ethical grounds. Much of Burma’s marketing is aimed at non-English speaking markets. Russia is a surprising growth market where the population have less knowledge of the regime.

Exotissimo sells packages mainly to French and Spanish travellers and as such, goes to some length to ensure it uses as little government-owned infrastructure and accommodation as possible. Su Su Tin says this is due in part to the ethical demands of the clients. The company uses privately-owned domestic airlines such as Yangon Airways rather than Myanmar Airlines, the government airline.

Lonely Planet, in its Burma guidebook, debates the implications of spending tourist dollars in the country. It estimates that through visa fees, taxes and licences around 15% of any stay will filter its way to the junta. Brake says the figure is around double this at five-star accommodation. Mathieson says that given the closed nature of the economy private entrepreneurs that want to build upscale accommodation “inevitably” have close connections with the junta.

Some of these connections are more unsavoury than others. Arms dealer Tay Za, on Australia’s sanctions list, is owner of Air Bagan and several upscale resorts. He is a close associate of the country’s ruler, senior general Than Shwe.

AGENT TIPS
❑ Do not use the government- owned Myanmar Tours & Travel (including any of its many affiliates) and avoid, where possible, government-controlled infrastructure.
❑ Use privately-owned hotels and transportation – including airlines – and make direct inquiries on ownership before using those offered by wholesalers.
❑ Advise your clients of both opportunities and potential pitfalls with regards to spending their personal money while in Burma.

Sujata Ramen, managing director of Abercrombie & Kent in Australia and New Zealand is bullish about the benefits of operating in the country. “We’ve kept the office open even under intense pressure and even when there was no tourism,” she says. “We have to show the Burmese that the world has not forgotten them,” she says. A&K was also able to push almost US$650,000 (A$750,000) in aid to local people after Cyclone Nargis devastated the country in 2008. “Without having a local office that money would have gone through government channels,” she adds.

Local people selling souvenirs, postcards and handicrafts are all eager to supplement their meagre income with dollars, she adds. The government is not too concerned with tourism, as oil, gas and logging provides the bulk of its foreign earnings. Mathieson says sanctions are much better targeted at France’s Total Oil, or Western Australia’s Twinza Oil which have both exploited the country’s oil fields. Even the tourism ministry admits most destination marketing
is relegated to private firms, since the government allocates no funds.

The tourism ministry has revised its target for international visitors to 500,000 from the oftquoted one million it announced in 1989. In 2006 a reported 264,000 tourists entered the
country, the best year so far. Exotissimo saw a dramatic drop after the last round of prodemocracy protests in 2007 and again after Nargis, but Su Su Tin expects 2009 to match 2006 levels.

An Australian tourist, Bill, a former commercial fisherman from Darwin, told me in Bagan that a
bigger barrier to tourism for most Aussies is the country’s lack of credit card facilities and mobile
phone roaming, both the result of sanctions. “It’s a real hassle to have to carry around a fortnight’s money in US dollars,” he says.

The real hope is for the future. The military regime is understood to be tearing itself apart with infighting. The ailing and ageing Than Shwe has promised to pursue elections next year, although
opposition political parties are still banned. Sadly, clearly rattled by the prospect of losing, the military government has more than doubled the number of political prisoners in the past two years, including more than 100 imprisoned in recent months, Human Rights Watch says.
A pro-democracy activist in Rangoon, who preferred to remain anonymous, told me the best hope the country has is for a powersharing deal between the military and an elected government.

If the government does change, even partially, the Burmese people expect the tide of tourism to finally turn their way. With one of the most unspoilt countries left in Asia awaiting, it is a tidal wave many in travel can be expected to ride. ■

Justin Wastnage travelled to Burma courtesy of Exotissimo Travel

TWO SIDES OF THE DEBATE
GO NOW
“Peregrine and Gecko’s understand and share the concerns of the global community regarding the current situation in Burma. We firmly believe that our presence in Burma is in keeping with the spirit of Aung San Suu Kyi’s extended comments regarding tourism, and that our presence is a positive one. Our aim is to expose the country to outside scrutiny and to give the Burmese a chance to communicate directly with foreign visitors. It is not an endorsement of Burma's current political system or human rights record.”
Tietse Stelma, operations and responsible tourism manager, Peregrine Adventures

“There is no question that the military dictatorship in Burma is among the most brutal and oppressive regimes in the world. Supporters of a tourism boycott have urged Lonely Planet to abandon publication of its Myanmar (Burma) guide, which they argue encourages tourism and implicitly supports the regime.
Lonely Planet takes this view extremely seriously. We therefore considered long and hard whether we should publish our 10th edition. In the end, we came to the conclusion that it was important to continue. Our aim in publishing this guide is to provide objective information to help travellers make informed decisions about visiting Burma. No one reading our guide could be in any doubt about our opinion of the current regime.
For those who do decide to go, Lonely Planet’s guidebook is one of only very few sources of information that enables travellers to maximise their support for the local population, and minimise the prospect of any money which they might spend going to the military regime.
When such travellers return, we encourage them to speak out about what they have seen, to write to the local Burmese embassy and to share their experience with others.”
Piers Pickard, Acting Global Publisher, Lonely Planet

GO LATER
“Insight Guides has postponed a new edition of our Insight Guide Burma (Myanmar) in the light of recent events. We have every sympathy with those who find the current regime in Burma repugnant and as a publisher and distributor in Asia we do no business with that country.”
Katharine Leck, managing director, APA, publishers of Insight Guides

“Intrepid Travel operated trips to Burma from 1995 to early 2000. We had been very aware of both the positive and negative aspects of running trips to a country being ruled by a corrupt non-elected junta that continues to suppress people’s basic human rights. In 1999, after a review of the political situation and after consultation with many stakeholders, we decided to suspend trips to Burma – the decision was based on a vote made by Intrepid Travel staff.
Intrepid remains committed to the ongoing debate on the role of tourism in Burma. A review of our position was held in June 2002. Three trips ran in 2003, but after a deterioration of the situation there we suspended again. In July 2006 we researched our decision yet again. After a lot of discussion on the pros and cons with many on government organisations, operators and experts, Intrepid chose to continue its stance not to run trips in Burma. We will continue to monitor the situation and review our decision again, when we feel there is more progress towards human rights in Burma.”
Jane Crouch, responsible travel manager, Intrepid Travel