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.
Friday, November 20, 2009
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.
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.
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.
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.
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.
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 WastnageThe 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.
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