Qualifying clients right from the start and charging a fee at the front end are taking on added significance as travel continues to ramp up across leisure, corporate, groups and events, says high profile Christchurch based retailer David Williams.
The managing director of House of Travel Christchurch City, Williams says in 10 weeks of this year the company has done the same turnover as the whole of 2021 and a third of what it achieved in 2019.
The average value of a booking has doubled for Wild Earth Travel since New Zealanders started moving again this year, says general manager Aaron Russ.
‘There are people that are going to spend money, and they have the money to spend.’
Expedia TAAP is expecting to see a full return to business by the end of this year ‘at the latest’ says Stu Udy, director travel agent distribution.
However, he does add a caveat – the recovery could be constrained by airline capacity.
If flight booking trends continue at the current pace, an estimated 430 million more passengers will fly in Asia Pacific in 2022 compared to last year, according to the latest Mastercard Economics Institute analysis.
The research indicates that the travel outlook for the region is optimistic, even with markets in North Asia and mainland China yet to relax border measures.
Employers in the travel and tourism industries need to look beyond their own sectors to boost their pool of human resources – including areas where many of their own people may have ended up due to the pandemic, says Jason Hill, managing director of Tourism Talent.
‘Areas like retail and aged care have snapped up people from travel and tourism, including some I know of directly from the retail travel sector. So the employers obviously recognised the transferable skills these people have.
International departures will reach 68% of the pre-Covid-19 levels globally in 2022 and are expected to improve to 82% in 2023 and 97% in 2024, before making a full recovery by 2025 at 101% of 2019 levels, with a projected 1.5 billion international departures, says analytics company GlobalData. However, the trajectory for the recovery in international departures is not linear across regions or countries.
House of Travel’s National Partnership Conference in Auckland early May brought together 56 business partners and members of its executive team for the two-day event – the first of its kind since the pandemic began.
Developing a public relations and marketing strategy around attracting new people into the industry is a major priority for the Travel Agents’ Association of New Zealand, says chief executive officer Greg Hamilton.
‘We will be going out to engage with members about what they need on this front,’ says Hamilton.
‘Presuming members will not be able to replace all the gaps with experienced people, what skill sets do new people need and what does the training for that look like?
Business travel is surging forward, international travel is returning and despite new challenges, industry recovery is entrenched, according to the latest Business Travel Recovery Poll by the Global Business Travel Association (GBTA).
In addition, corporate travel policies are undergoing a revamp and employees are broadly willing to travel for business, the poll suggests.
Travel retailers need to ensure they are not running in ever decreasing circles trying to take on more business than they can handle, says Rahul Sharma, managing director of Exotic Holidays.
He says that with depleted staff numbers, a surge in bookings and more complex border regulations, the trade could be in danger of providing sub-standard service and in turn driving clients back to booking on-line (with OTAs).
Volume is coming back and things are looking up, but the continued closure of borders to some key inbound markets and a resulting lack of competition among carriers and other suppliers means 2022 will continue to be challenging, says Rob Beecher, director of Global Travel Network (GTN).
Offshore group travel is back in a big way and incentives won’t be far behind, says Kim Herd of Venture Travel.
Herd says that among business that she has handled since the borders have started to open is a sports team to France, with the enquiry three weeks ago and the travel booked for August.
Brokers and agents are reporting that a fee-driven structure to their business is being readily accepted by most clients – as long as there is clarity around charges.
Sandra Ivelja, of So Travel and a member of NZ Travel Brokers, says she has a schedule of fees which she emails to customers before any work is done.
'Hearing about client hesitancy for long haul travel provided a compelling reason to travel as early as possible following the New Zealand border opening,’ says Robyn Galloway, managing director of Innovative Travel.
Galloway has just returned from a five-country, 10-flight tour reconnecting with Northern Hemisphere partners.
Despite initially being driven largely by the visiting friends and relatives (VFR) market and pent up demand, the current upsurge in travel enquiries and bookings should in no way be regarded as a flash in the pan, says First Travel Group’s general manager retail John Willson.
He says the trade needs to adapt to the current business environment, at least in the medium term, where the challenge is having the people power to cater for the upsurge – as well as making sure travel businesses are profitable.
Graduations, an announcement of the latest inductees and some new and refreshed sponsorships were all part of a TIME (Travel Industry Mentor Experience) NZ ceremony and function at Crown Institute of Studies in Auckland early April.
The proceedings were held in an atmosphere of optimism as borders open, the industry gets busy and the focus is firmly put on developing skills as well as retaining and attracting talented personnel in the travel and tourism sectors.
The founder and director of Australian independently owned travel management company, Connections Group says weathering the storm of the past two years will mean nothing if the industry can’t attract a high calibre of employee to now help in what could be the sector’s busiest period on record.
The industry is having to cope with rapid growth in volume on as little as 25% of the pre-Covid workforce, says new Travel Agents’ Association of New Zealand (TAANZ) CEO Greg Hamilton.
‘In every agency and head-office I have visited in my first week, I have seen empty desks waiting to be filled again.’
Retail agents need to take full advantage of the new ‘supply and demand’ situation they are presented with, says an accountant who specialises in the travel and tourism sectors.
Paul Davies, partner with OneTeam Chartered Accountants, says concentrating on quality clients rather volume will also help alleviate the challenge of adding staff to an agency team.
Travel and tourism companies need to target millennials and Gen Z with offerings away from busy summer periods that create value for money and authentic experiences, says analytics company GlobalData.
The company notes there were two billion holiday takers within the age range 25-34 in 2021, the second highest for its number of holiday takers, behind 35-49,
Corporate Traveller New Zealand reports it is already seeing a positive trajectory for 2022, with international booking volumes doubling within weeks of the government’s decision to scrap self-isolation for returning citizens.
The quick re-bound indicates a strong desire for in-person meetings and gatherings for successful business development, customer retention and networking.
Flight Centre New Zealand reports that recruitment is remains very much the focus for the company at the moment as enquiries increase almost weekly.
‘It has been a wonderful month in New Zealand as we open up the world to those who want to explore again, and our consultants are busy booking trips all around the globe,’ says Heidi Walker, general manager of leisure brands.
Flight Centre New Zealand has seen renewed interest in its independents models since the New Zealand government’s latest border announcements,.
‘Almost all of this is from experienced industry staff exploring what potential options are now available,’ says Jason Buckley, GM independent models with the group.
Collaboration and confidence were the two key words at the hybrid TAANZ (Travel Agents’ Association of New Zealand) Partner Forum early February.
The event attracted some 30 members of New Zealand’s travel retail and supplier community to a face to face workshop at Flight Centre head office in Vincent Street, while another dozen attendees beamed in on-line.
The travel and tourism sectors have greeted the Government’s five step opening plan with enthusiasm, with TAANZ president Brent Thomas saying this is the first time since March 2020 that the message has clearly been ‘the borders are open’.
However they have also pinpointed major ongoing challenges, particualrly the self isolation requirement. (See separate story this page)
The Board of Airline Representatives (BARNZ) says self-isolation requirements need to go as soon as possible, or some airlines will cut New Zealand from their routes for a third summer in a row.
‘The airlines have told me they want to fly here, but they need to know New Zealand is open to business. Leisure and business travellers will not come if they have to self-isolate for days – it’s a market killer,’ says Justin Tighe-Umbers, executive director of BARNZ.
Despite a feeling of ‘walking on eggshells’, the directors of Fuzion Travel and recently acquired New Zealand tour operator Travel Wise Holidays say they are committed to soldiering on and being ready as and when the market finally recovers.
‘We’re seeing some broker numbers drop,’ says Stuart Mckay, ‘but we also know there will be opportunities down the track once we get some certainty back.’
Employers will increasingly require assistance when it comes to travel arrangements over the next 12 months, one positive sign for corporate travel agents identified by recent research.
Rebuilding Business Travel – Insights from global TMC leaders on the business travel industry outlook and recovery strategies for 2022, the latest report from Amadeus, explores the opportunities, challenges, and growth strategies that will shape the future of business travel.
Here we are, the travel agency community, on the doorsteps of Christmas having weathered 21 months of the worst crisis ever to hit the industry. Travel Agents and Brokers have worked tirelessly on behalf of the New Zealand consumer to manage bookings through the nightmare of Covid. Changes in supplier conditions, border openings and then their subsequent closing have all been dealt with the customer centric focus the industry is renowned for.
Then Christmas was stolen for the travel agent and broker community. Not by the pandemic, not by the Government but, without even the respect of any consultation, by our single largest supplier and partner. A partner who the travel agency and broker community have whole-
Now is the time for agents to reconsider whether they are an agency or a consultancy business.
Air New Zealand announced last week that point-of-sale commission levels are reducing from 5% to 1% for long haul routes and 3% to 0% for short haul routes. This will have an immediate effect on travel agents’ and consultants’ business income. Now you have no choice but to take control of your own business profits.
The Travel Agents' Association of New Zealand (TAANZ) says agents will feel let down by the national carrier's announcement that it is reducing front end commissions next year.
The airline advised brand heads and TAANZ yesterday that from 1 July 2022 it is adjusting current New Zealand point of sale commission levels from 5% to 1% for long haul routes and 3% to 0% for short haul routes.
The International Air Transport Association (IATA) says the recovery in air travel continued in October 2021 with broad-based improvements in both domestic and international markets. However, it warned that the imposition of travel bans by governments, against the advice of the WHO, could threaten the sector’s recovery.
Total demand for air travel in October 2021 (measured in revenue passenger kilometers or RPKs) was down 49.4% compared to October 2019. This was improved over the 53.3% fall recorded in September 2021, compared to two years earlier.
Travel locations that have remained open through the Covid-19 period, particularly branded locations, will retain a strong position in the market as the travel industry recovers, says John Willson, general manger retail with First Travel.
He says clients will be looking for financially stable and trustworthy advisors who are easy to access for a one-on-one conversation.
‘The travelling public will still do their searching online but either through a lack of confidence or because of fear instille upon them, they will not press the book button.’
As regions and governments around the world assess the potential impact of the fast-emerging Omicron variant, and therefore what actions to take, the Global Business Travel Association (GBTA) continues to encourage a clear, consistent and thoughtful approach.
This is especially in terms of keeping country borders open to travellers.
While technology will obviously have a key role in alleviating stress points at airports in other parts of overseas journeys, the travel trade globally will also be drawn upon to make sure clients are properly prepared.
This was made clear during a Tourism Industry Aotearoa summit yesterday, where Matteo Zanarini, area manager South Pacific for the International Air Transport Association (IATA) said that changing requirements, rules and checks could extend customs clearance to 5.5 hours. That is if travel numbers reached even 75% of pre-Covid levels.
By Manoj Vagh, Partner, OneTeam Chartered Accountants
We have just completed the six-month TAANZ bonding results for our 70 plus travel clients.
The travel business results are much better than most of our other clients who have been affected by Covid. Our travel clients were profitable or at break even for the six months ended April to September 2021.
Global business travel spending is likely to surge in 2022 with full recovery expected in 2024 – ending the year on pace with the 2019 pre-pandemic spend of $1.4 trillion, and a year sooner than previously forecast, according to just released research findings.
This is despite business travel recovery in 2021 proceeding slower than expected.
The annual global Amadeus Travel Trends research points to active eco-tourism and ‘friendcations’ plus the digital transformation of business travel, as things to watch for as travel comes back on the agenda.
At the same time, interesting new search and flight locations are emerging - from flight searches up by one third to Tanzania, to flights doubling to cities close to Machu Picchu.
Corporate travel managers can experience a preview of global travel management company FCM’s new proprietary platform.
Developed in response to a rapidly evolving business travel landscape, this latest initiative reflects the company’s accelerated investment in next-generation technology. Following a productive testing phase, demos are being offered to prospective clients.
Confidence levels amongst senior aviation managers and travel experts is edging slightly up, but there is still plenty of pessimism and uncertainty around – particularly in Asia-Pacific, according to research released at the CAPA Centre for Aviation Live sessions in November.
The Industry Pulse Survey undertaken in September by Collinson Group, in partnership with CAPA, revealed that 37% of respondents now expected a full recovery to 2019 levels in 2023. This was up from 31% in April.
A leading Auckland based corporate travel agent says that despite challenging times now he expects the sector to be at least on its way to a strong recovery in Q1 next year.
Keith Sumner, managing director of Gilpin Travel, says the company’s team will be back to full employment in February next year.
‘We’ve budgeted for that and we are committed to it. We’re taking the punt on the basis that even if things are not fully open there will be orders coming in anticipation of travel and that will keep us busy.’
There is a marked shift in the attitude of New Zealanders to see the New Zealand border open sooner, according to the latest KANAR survey released this week by Tourism New Zealand.
Researched in October, the survey shows that 57% of the 1,200 plus respondents would ‘prefer the NZ borders to open sooner to a limited number of low-risk countries to help the economy, with safety measures in place.’ This is up from 49% in the same survey in July 2021.
Kiwis’ love of cricket will be an important part of the travel recovery when we are able to move again, according to research by Booking.com.
The research, which surveyed both New Zealand and Australian sports fans, suggests that the 2022 men’s and women’s tournaments to be held across Australia and New Zealand have the potential to support the region’s travel resurgence. Sixty nine percent of Kiwi and 62% of Australian fans say they would travel with their family to watch a Cricket World Cup and a substantial percentage of people say they are likely to travel to a destination for cricket even if it is not normally high on the list of places they want to visit (59% NZ, 54% AU).
Flight Centre Travel Group (FCTG), has launched a new website that puts departed alumni front in line for roles when travel opens up again.
Having lost many of its people during the Covid-19 pandemic through stand down and redundancy, the travel retailer is determined to stay connected to those reluctantly let go.
The new website, Flighties Forever, will help the company continue to do that - allowing its people (past and present) to mark their place in the company’s history books, plus receive job alerts, access to company news and professional development tips.
Travel Agents’ Association of New Zealand (TAANZ) president Brent Thomas says the changes announced to MIQ yesterday now mean that instead of 90% of people who apply for a spot in the system being disappointed, now 80% will be.
‘It defies logic that fully vaccinated people who test negative before they come here still have to spend seven days in MIQ before being able to self isolate,’ says Thomas.
‘It is still a lolly scramble without enough lollies – business travellers still won’t be able to travel and people still won’t have the ability to reconnect with their loved ones.
A partnership between Jupl NZ and Travel Lab NZ is set to help the travel industry work alongside travellers to utilise home isolation.
Jupl co-founder Sir Ray Avery, says the joint venture is the first stage for allowing Kiwis to return home safely avoiding the MIQ system which, for many, is heartbreakingly long.
‘The aim of this strategy is to use technology to eliminate human error and provide the government with documented assurances that covid home isolation can effectively prevent widespread community transmission of Covid.’
Corporate travel managers should be encouraged to reach out during the RFP (request for proposal) process and ask for dual rates and other flexibility in pricing, says Quest’s general manager sales Anthea Dimitrakopoulos.
Speaking at Flight Centre’s digital Illuminate event late last week, Dimitrakopoulos says corporates are understandably unable to guarantee room nights like they traditionally could in the past.
Flight Centre managing director Graham ‘Skroo’ Turner admits he may be a ‘bit optimistic’ but predicted yesterday that New Zealand would open its borders to certain places before Christmas.
Speaking during Flight Centre Corporate’s Illuminate virtual event yesterday, Turner noted that Covid was in the community on this side of the Tasman.
‘So there is no reason they can’t open up to fully vaccinated people. Vaccination is the key, perhaps with 72 hour testing as well.’
Travellers want to get moving again, but their enthusiasm is being dampened by confusion around international requirements, according to a just released survey commissioned by Amadeus.
The survey of 9,074 consumers across France, Germany, India, Spain, Russia, Singapore, the UAE, the UK, and the US shows the appetite to travel is high. It indicates 77% of travellers globally want to travel in the next year, with 50% of expecting to take a flight for business later this year.
Access to information will be more important than ever for travellers when they start moving again and the industry as a whole needs to work to ensure the consumer can move with confidence, says James Marshall, vice-president global air account management with Expedia.
Speaking at CAPA Live, Marshall was responding to a question put by moderator Trent Banfield, international operations and aviation manager at Tourism Australia. Banfield noted that travellers might be more confident being able to call someone to help them get through any difficult situation.
A leading wholesaler is warning trade that their main challenge next year, when New Zealand borders eventually open up, is likely to be finding availability for clients– especially for high end accommodation and niche activities.
World Journeys director Chris Lyons says there is now no question that Europeans and Americans are living with Covid as vaccination rates continue to rise and that they are on the move again.
First Travel Group is inviting travel agents and brokers to get a first hand demonstration of its new technology, saying its leading edge system will enable the trade to take full advantage of travel’s return.
‘We realise these are frustrating times for the sector,’ says First Travel Group’s (FTG’s) general manager retail, John Willson, ‘but we have been putting a lot of hard work into our offerings and we believe we are well positioned for the reboot of travel.
‘It’s a waiting game at the moment but we know it will come back strong – the experience in the US and UK, and soon Australia, show us that.’
Rako Science, which has a strong working relationship with many travel agents, has asked Parliament to protect the rights of all New Zealanders by amending the bill that gives coercive powers to seize laboratory supplies and requisition services from Covid-19 testing laboratories.
Rako Science is New Zealand’s largest Covid-19 PCR saliva testing service and in the last four weeks has collected and processed 30,000 saliva tests.
Minister Chris Hipkins has made it clear that the Government will not be taking any further decisons regarding the Consumer Travel Reimbursement Scheme.
The Travel Agents Association of new Zealand (TAANZ) has just circulated a letter from the Minister to Todd Muller, MP for Bay of Plenty. The letter also states that Government will 'not be providing any other direct support to travel agents at this time'.
TAANZ says it appreciates this will be a bitter pill for members to swallow.