By JO-ANNE HUI-MILLER, Associate Publisher
Virgin Voyages is coming back to Australia – kind of. I caught up with the cruise line’s team over a long lunch at Bondi Icebergs this week, where they filled me in on how they’ve decided to reinvest in the Australian market after six months of listening to the travel trade’s insights into the brand and where the pain points are.
While the line is not returning its ships back to our shores, it has just hired a new BDM in Pam Nielsen and is on the hunt for a new head of sales. Meanwhile, its new deployment of ships sailing to LA and Alaska will suit plenty of Australians’ travel needs and importantly, it will be resolving the issues trade experienced with its commissions and technical limitations.
I’m really keen to watch how the next year unfolds for VV. While the cruise sector is booming and there are quite a few impressive players in the market, VV’s edgier, cooler offering is still quite unique in a sector that is often geared to families and older passengers (even though yes, I understand that more 40-somethings are entering a sector once dominated by 60-70-year-olds).
When I spoke with SVP of growth (and father of two) Stephen Hopkins about the gap that VV fills in the market, he pointed to the line’s kid-free offering, which has since been picked up by other players.
“The kid-free element can’t be underestimated, right? It’s a gamechanger in terms of the experiences you get,” he said during our chat, adding that 55% of VV passengers live with kids at home.
“The food, the entertainment – it can all be more elevated…it means that when people come on and whether they’re 20, 30, 40, 50, or 60, they get to be that person when they were 20 or 30. Feeling younger at heart – that experience is truly special. I think that is something that we’ve created in the market that is irreplaceable and is unique.”
Meanwhile, head of marketing and digital innovation Billy Bohan encouraged travel agents to consider Virgin Voyages again.
“It’s time to shop us again. We have an incredible number of itineraries over a vast number of regions across the world, including now the west coast and Alaska, but we also have a lot of other options,” he enthused.
“We introduced a new pricing structure at the end of last year. We also have resources to help [agents] do business and sell more easily with partnerships like Canva. So if you haven’t done business with us in a while, it’s time to come back.”
IN OTHER NEWS
One of the biggest news stories of the past week was the RBA’s decision that surcharging on debit and credit cards will end on 01 October.
“This week’s decision by the RBA is the latest disappointing announcement by a central bank that does not seem to truly understand the pressures faced by businesses and Aussies at large,” ATIA CEO Dean Long said.
“There is also no doubt that this decision will increase headline and underlying inflation across the country’s economy, which will add more pressure to increasing interest rates.
“This is because they have seriously underestimated how many companies surcharge.”
However, Council of Australian Tour Operators CEO Brett Jardine believes that local tour and wholesale companies will likely be able to structure pricing so as to absorb the costs upfront.
He also noted that the change may be a problem for those agents working on tight margins and surcharging still remains common with offshore DMCs and suppliers that sit outside of Australian regulations.
“Agents may still face costs they cannot transparently recover,” Jardine explained.
“This is an opportunity to simplify pricing, reduce friction at the point-of-sale and strengthen alignment across the local supply chain by focusing support on Australian-based tour operators and wholesalers.
“Australia is following the direction of the UK and Europe, where surcharging has been banned for several years, making this outcome largely expected.”
Other breaking news this week was the departure of Webjet CEO and MD Katrina Barry, who led the business through a major transformation last year, while juggling an acquisition tug-of-war between Helloworld and BGH Capital.
“Over the past 21 months, we have made remarkable progress…revitalising the iconic OTA brand and marketing strategy, driving profitability in the New Zealand business units, and initiating evolution and enhancement of the technology and business travel platforms,” she said.
“As a shareholder and a great supporter of the business and the team, I am incredibly excited for what lies ahead for Webjet and look forward to watching its continued success.”
Meanwhile, tickets are now on sale for Air New Zealand’s inaugural flights between Auckland and Western Sydney International Airport, making it the second carrier committing to the new hub.
Earlier this week, the Queensland Tourism Industry Council (QTIC) called on Prime Minister Anthony Albanese to support tourism businesses impacted by the global fuel crisis through a national funding injection.
“We are seeing a cumulative impact – insurance, energy, labour and compliance costs have all risen significantly over recent years, and fuel is now adding an immediate and visible layer of pressure,” QTIC CEO Natassia Wheeler said.
“Businesses have worked incredibly hard to absorb these increases, but there is a limit to what can be sustained without impacting pricing, operations and ultimately visitor demand.”
Speaking of stretched travel professionals, Destination Webinars released the results of a survey of 600 advisors, exposing a growing list of concerns from the industry. These include increased competition from online and direct channels, airline and NDC frustrations, the pace of technology change, and shifting client expectations.
In other news, a new management and fintech platform designed for travel agents called Odyssys will launch into the market in May.
“Odyssys is not adapted from another industry or retrofitted from a generic CRM, it is built specifically for the way travel agents actually work – from client consultation to payment landing in a supplier’s account,” said Luke Ballard, who is leading the business.
My colleague Travel Daily editor Adam Bishop caught up with former travel agency owner Josh Zuker, who is struggling through a bureaucratic hot mess amid a dispute over refunds with previous clients. Zuker shared with Bishop the pitfalls within Victoria’s civil justice system in a warning to the travel trade.
“In some ways I am sick and tired of talking about it, but I want to voice my opinion because my voice is strong…because I still don’t understand how VCAT can just turn around and say ‘that’s just how it is’,” he said.
“The facts don’t add up and I have just felt like I have been talking to brick walls.”
Onto the seas, Cruise Weekly kicked off the week strong, with news of a big NCLH board shake-up, driven by its activist investor Elliott, which saw four directors resign and replaced with new members and CEO John Chidsey as chairman of the board.
“We are moving with urgency to strengthen the business and enhance execution,” he said.
“There are significant opportunities to deliver stronger performance and sustainable value for our shareholders.”
Moving on, Royal Caribbean announced its fourth Icon-class ship, Hero of the Seas, arriving in Miami in August next year, jam-packed with family fun and “more water, more thrills and more choices”.
On that note, it’s time for me to hop off into the weekend. Enjoy the break and all the chocolate.
Jo-Anne Hui-Miller
Travel Daily Associate Publisher
[email protected]
