ILLUMINATES THE WORLD OF CRYSTAL EVERY JOURNEY - CRYSTALCRUISES.COM - Travel Bulletin
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October 2018
T H E WO R L D O F C R Y S TA L®
ILLUMINATES
E VERY JOU RN E Y
Beyond destinations. Past expectations.
Shines a world that redefines what it means to travel.
OCEAN RIVER YA C H T E X P E D I T I O N AIR
CRYSTALCRUISES .COM
CA PTIVATI NG EARN
Q A N TA S
POINTS
EU R O P E
CRYSTAL INSIGHTS WITH KAREN CHRISTENSEN
From ancient monuments lining the shores of the Mediterranean and yacht-
spangled harbours of the Dalmatian Coast to fairy-tale castles crowning cities
along the Danube, Rhine and Moselle rivers, Europe’s iconic wonders have long
tugged on the heartstrings of the world’s most ardent travellers. Your clients will
be spoiled with the renowned Crystal Experience as they discover the romance
and wonder of Europe, whether by ocean, river or yacht expedition. Karen Christensen
Senior Vice President
CRYSTAL. CLEARLY DIFFERENT. & Managing Director
Australia & New Zealand
2 019 F EAT U R E D E UR O P E A N VOYAGES
ALL
TAKEN CARE OF
Acclaimed
farm-to-table dining†
Select fine wines,
champagne & spirits
PENINSULA PANORAMA ENCHANTING MOSELLE AEGEAN YACHTING IDYLLS
CRYSTAL SEREN IT Y C RYSTA L BAC H C RYSTA L E S P R I T Gratuities for
O CY190529 -12 R BA 19 072 9 -10 Y E S 1 90 81 8- 07
housekeeping,
Barcelona to London (Dover) Amsterdam Roundtrip Athens to Dubrovnik dining and bar staff
Dates 29 May – 10 Jun, 2019 Dates 29 Jul – 8 Aug, 2019 Dates 18 –25 August, 2019
Days 12 days Days 10 days Days 7 days Unlimited WiFi
Fares from US$6,660pp* (A2) Fares from US$6,115pp* (S5) Fares from US$7,496pp* (S3)
FO R MORE I N FO RM ATIO N , TO BO O K OR TO
1300 059 262
RECEIVE A B R O CH URE, CO N TACT CRYSTA L. C R YS TA LC R U I S E S .C O M
*Fares are cruise-only, per person, in U.S. dollars, based on double occupancy, apply to new bookings only, and include taxes, fees and port charges. Crystal Serenity Fare includes Book Now
Savings, must be booked by 31/10/18. Solo Traveller Fares available on request. †Crystal Serenity offers each guest the opportunity to dine at least once on a complimentary basis in Prego and at
least once in Umi Uma or the Sushi Bar. Additional reservations including “walk-in” visits are subject to a US$30 per person fee, subject to availability. Optional dining in the Vintage Room attracts
an additional fee. Cruise-only fare does not include land programs. All offers may not be combinable with other promotions, apply to first two full-fare guests in stateroom or suite, are capacity-
controlled, subject to availability and may be withdrawn or changed at any time without notice. All fares, itineraries, programs, policies and shore excursions are subject to change and correct at
time of printing. You must be a Qantas Frequent Flyer member to earn Qantas Points. A joining fee may apply. Membership and points are subject to the T&Cs of the Qantas Frequent Flyer program
available at qantas.com/terms. Restrictions apply. For complete Terms & Conditions and Privacy Policy, visit crystalcruises.com/legal. ©2018 Crystal Cruises & Crystal Yacht Expedition Cruises, LLC.
Ships’ registries: The Bahamas. Crystal River Cruises ships’ registry: Malta.
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Contents
14
30
38 52
Features Cover story 20 Business view
24 Cruise
30 Japan 14 The million dollar club
28 Industry in Focus
Brian Johnston discovers what to do Find out which industry execs can
when not watching World Cup rugby buy a private jet with their earnings 62 Last Word
38 Europe
Jenny Piper explores Croatia from Monthly Columns
the sea
02 From the publisher 06 Steve Jones
52 South & Central America
Craig Tansley uncovers the best 02 State of the industry 08 AFTA View
time to visit Torres del Paine 08 Issues and trends 12 TTF View
58 Sri Lanka 19 Business Events News 27 CLIA View
Awaken your senses in Sri Lanka
This month’s contributors
Steve Jones, Joel Katz, Jayson Westbury, Leonie Spencer, Margy Osmond, Ana Pedersen, Brian Johnston, Jenny Piper, Emma Lovell, Craig Tansley, Harry
Sargant, Jacqui Tufala, Sarah Beyer, Lisa Meyers
EDITORIAL Advertising Suite 1, Level 2, 64 Talavera Rd
Editor in Chief and Publisher – Bruce Piper National Sales Manager Macquarie Park NSW 2113 Australia
Lisa Maroun PO Box 1010 Epping NSW 1710 Australia
Co-ordinating Editor + Production – Ph: 0405 132 575 or 02 8007 6760 Tel: 1300 799 220 (+61 2 8007 6760
Sarah Beyer lisa.maroun@travelbulletin.com.au
Ph: 1300 799 220 or 02 8007 6760
sarah.beyer@travelbulletin.com.au ART
Design – Sarah Beyer, Wendy St George
Contributing Editor – Jon Murrie Director – Jenny Piper
www.travelbulletin.com.au
904
5,355 Avg Net Distribution per Issue
This publication is independently audited under the AMAA's
CAB Total Distribution Audit. Editorial team – Jasmine O’Donoghue, Adam FINANCE travelBulletin is part of the Business
Reporting Period: 16 2016––30
Bishop, Anastasia Prikhodko, Sarah Fairburn
1 Apr
Apr2017 16Sep
Sep2017
Publishing Group family of publications
2016 - Publisher
Statement
accounts@traveldaily.com.au
travelBulletin October 2018 1
State of the industry
From the Welcome to the October 2018
issue of travelBulletin, which
loyalty and other personal data.
For example, in the case of a
publisher
contains our annual round-up of business traveller who generally
some of the big earners in the flies with a particular airline, surely it
Australasian travel industry. The would be a temptation for the carrier
Bruce Piper Million Dollar Club feature is very
popular each year, and in 2018 we
to present a higher price based
on the fairly certain assurance the
have represented the fat pay packets client will buy that fare regardless of
with a comparison of the number of the cost – in contrast to a potential
private jets they can all buy. new customer that the airline is
It should be noted, however, that attempting to woo? NDC would
the Million Dollar Club only highlights enable this, versus current platforms
the income of the senior executives where fares are the same regardless
who have the first world problem of of who might be purchasing them.
their packages being exposed due The new Sabre AirVision Fares
to working at ASX-listed companies. Optimizer product “generates fare
Many of the largest businesses in recommendations by estimating each
the industry are privately held, and I customer’s potential willingness to
would not be surprised at all to find pay”. It suggests pricing structures
that similar figures are being racked based on customer segmentation,
up by their owners too – without and is part of a broader Sabre
the annoying scrutiny that a public strategy to build a Digital Commercial
annual report brings. Platform that “delivers end-to-end
MEANWHILE a recent technology personalised retailing for airlines”.
launch by Sabre has rung alarm Some fear a future where flight
bells among stakeholders concerned pricing uses Facebook-like algorithms
about the propensity for IATA’s New based on personal details like age,
Distribution Capability standard to address, employment status, family
reduce transparency in flight pricing. situation, investments and even
Because NDC has the ability to gross income to adjust fare offers
provide deep customer insight, some based on the client’s ability to pay.
have been concerned it may result in Current technology already enables
prices charged to passengers varying some of this to happen, and the rich
based on such elements as their data provided by NDC will facilitate a
previous purchasing patterns, carrier further evolution of this possibility.
IN Dream Cruises to come to Sydney construction of her sister ships with acclaimed service that
is Asian at heart and international in spirit,” he said.
BRIEF Australasia will welcome its first Dream Cruises ship in
spring 2019, with the cruise line revealing it would bring
Explorer Dream will be fitted with new facilities including
The Palace, Dream Cruises’ luxury private enclave featuring
sister brand Star Cruises’ ship, SuperStar Virgo, into the 50 suites and butler service. The ship will also sport all
Dream fleet. To be renamed Explorer Dream, the ship will new food and beverage options “combining the best of East
undergo a US$30 million dollar transformation in March meets West” and a new Crystal Life Spa.
2019, and then from October next year the vessel will Prior to her Australian season, the ship will homeport in
homeport out of Sydney and Auckland, operating a series of Shanghai and Tianjin during the northern summer of 2019.
21 week-long itineraries. Explorer Dream will be followed by a Global Class ship
Tan Sri Lim Kok Thay, executive chairman of both cruise “soon after,” with the line telling travelBulletin earlier this
line’s parent company, Genting Hong Kong, said the move year it planned to bring a Global Class vessel to operate in
accelerated the company’s vision to “develop Dream Australasian waters in 2021.
Cruises into Asia’s Global Cruise Line” by sailing outside of
Asian waters.
Wollongong flight revival
“With her strong heritage in the Asian cruise landscape
and history in the region along with her world-renowned REGIONAL carrier Fly Corporate will re-establish direct links
German engineering, SuperStar Virgo’s transformation into from Wollongong to Melbourne and Brisbane after the
Explorer Dream will combine the best-in-class design and recent failure of rival JetGo.
2 travelBulletin OCTOBER 2018
The airline announced it would
launch new services from 12
November, with a 6.15am weekday
WENDY wU ENTRANCES xI’AN
departure from Wollongong to
Melbourne’s Essendon Airport and a
four times weekly 1.55pm departure
to Brisbane.
Fly Corporate CEO Andrew Major
said the new services would provide
options for direct travel from the
Illawarra region, as well as giving
alternatives to Sydney for travellers
heading onward to other domestic and
international destinations.
Flights will be operated by Saab
340B Plus aircraft, with launch fares
available from $199 one way. Wendy Wu Tours founder Wendy Wu and CEO Joe Karbo took part in
“We have chosen to operate the biggest tourism event in China this year along with about 1,000
this service utilising Melbourne’s VIP guests. The Shaanxi Provincial Government held an elaborate and
Essendon Airport given its close spectacular re-enacment of the Ancient Entrance Ceremony at the historic
proximity to the Melbourne CBD, Xi’an City Gate. The glittering ceremony has in the past been reserved for
lack of airport congestion together visiting heads of state and royalty, and has been likened in magnitude to
with economical car parking and city the opening of the Olympic Games.
transfer options,” Major said.
He noted that for passengers
inbound to Melbourne wanting to
connect on to other domestic and platform called Rapidbook to create a Agents who wish to book and hold
international destinations, there is a unique offering. air bookings for Galileo and Amadeus
free shuttle bus connecting Essendon He said corporate travellers were can now do so and have them ticketed
and Tullamarine airports. increasingly seeking a “leisure by Insider Journeys.
shopping experience” when booking, The update is the latest investment
FCTG launches “Savi” with Savi focused on providing better in technology for the company, which
engagement between travel bookers has also installed Tour Plan in the
Flight Centre has unveiled a new and road warriors. Saigon office and is planning an
corporate travel technology platform The Flight Centre offering includes “imminent review of its website”.
“
called “Savi” powered by Artificial exclusive modules such as Savi The move to Calypso also makes
Intelligence (AI) and designed in Select, Savi Voice and Savi Credits, it easier for agents to earn rewards
collaboration with Serko.
Being able to which Kavanagh promised would through the Insider Journeys “5, 10,
Launched at Flight Centre Travel deliver “significant efficiencies for 15 Incentive”, which gives agents who
Group’s (FCTG) “Illuminate” corporate book Insider business travellers, travel bookers and book five travellers on a Small Group
travel event at the Melbourne Cricket Journeys their companies”. Journey a 10-day trip to Vietnam,
Ground last month, Savi will be Cambodia or Laos, Mayell said.
product
available exclusively to customers
online in Insider moves to Calypso Those who book 10 passengers
of FCM Travel Solutions, Corporate can earn a 14-day tour to Vietnam,
Traveller, Stage and Screen and the same Helloworld’s Insider Journeys Cambodia, Laos, China, Bhutan,
Campus Travel.
Flight Centre said Savi “sets a new
way you can isreservations
now on the Calypso wholesale
system, allowing agents
India or Burma while bookings of 15
travellers can take a trip on any of the
benchmark in booking technology for book Qantas to book its small group tours online. company’s Small Group Journeys.
business travellers” and incorporates Holidays is The company said the move provides
functionality that would “generate agents “access to a greater level of
an important Insider Journeys product than ever SQ Hotelbeds pact
significant time efficiencies for
individual users and overall cost step forward before”, with sellers able to make Singapore Airlines last month
savings for businesses”. for the land and air bookings online though announced a major “holiday packaging
FCTG corporate executive GM, Helloworld Wholesale’s Tango platform. partnership” with accommodation
James Kavanagh, told travelBulletin Insider Insider Journeys MD Tony Mayell aggregator Hotelbeds, offering bundled
the company had been working with Journeys said “we know all agents using Calypso flights and hotel solutions for the
Serko for several years now.
brand will welcome this news. Being able to airline’s customers across the globe.
”
“We are the largest investor in book Insider Journeys product online The move is said to allow travellers
Serko’s development pipeline,” he in the same way you can book Qantas to curate their own holiday packages,
said, with Savi incorporating the best Tony Mayell, MD Holidays is an important step forward
elements of another Flight Centre Insider Journeys for the Insider Journeys brand”. Continues over page
travelBulletin October 2018 3
State of the industry
Continues from previous page Cyprus-based Celestyal Cruises.
Williams, who left Globus in
with real-time selection of Singapore February this year for personal
Ailrines flights alongside more than reasons after almost three decades
HEADLINES
170,000 hotels. Transfers and with the organisation, will report to
activities from the Hotelbeds platform Celestyal’s director of sales and travel
will also be progressively added to services, Marios Polydorou. “He has
23 Aug FC profit hits new record the new offering. Hotelbeds Group will joined Celestyal Cruises to oversee
23 Aug QF’s record $1.6b profit provided a dedicated team, mostly and develop the company’s APAC
24 Aug Lux Escapes plans more based in Singapore, who will be business, and to enhance revenue
24 Aug FC flags wages increases responsible for “customer service, streams and maximise business
pricing and product optimisation”. opportunities across the region by
27 Aug Expansion plans for SYD
The combination is being labelled increasing the visibility of the Celestyal
27 Aug ScoMo shows tourism pride as “Singapore Airlines Holidays,” and Cruises brand across all distribution
28 Aug Google ups flight tools sees the relaunch of the brand after channels,” the company said.
28 Aug The Dorsett edges closer its wholesale operations were closed Williams told travelBulletin he
29 Aug Virgin hit by $653m loss down in Australia more than two years was very happy to be working for the
ago after formerly being operated by operator, saying “the Celestyal cruise
29 Aug THL posts record profit
the now defunct Pinpoint Holidays and experience and product is fabulous”.
30 Aug NSW upgrades target
then Wendy Wu Tours. The cruise line’s Shanghai-based
30 Aug NCL looks to Aus season The move comes as Hotelbeds also business development executive, Wan
31 Aug CLIA, TAFE training pact confirmed a global consolidation of its Wang, will also report to Williams.
03 Sep Qantas Dreamliner boost retail businesses which will see legacy “Adding Stewart Williams to our
03 Sep TA’s $10m Asia campaign brands including GTA, TravelCube senior commercial team demonstrates
and TravelBound combined under the our commitment to the Australasian
03 Sep On the Edge of a reveal?
Bedsonline banner. Hotelbeds Group market,” said Celestyal Cruises
04 Sep TG slashes Aus capacity
managing director Bedbank, Carlos CEO Chris Theiophilides. “Stewart’s
04 Sep Crystal joins QF loyalty Muonz, said “it makes strategic and role is a core component of our
05 Sep QF schedule self-service practical sense for us to continue to global commercial strategy, which
05 Sep Entire Travel Group lifts develop our travel agent proposition includes our expansion throughout
06 Sep Travel pay packets slip under one integrated global platform the APAC region, where we expect to
and brand”. capture more opportunities to bring
07 Sep Facebook adds flight ads
the Celestyal Cruises story to new
07 Sep World pax hit new high Cruise role for Williams passengers,” he added.
10 Sep Regulation to reap $18b STEWART Williams, formerly the Currently Celestyal operates two
11 Sep Trafalgar goes domestic long-time head of the Globus Family mid-sized cruise ships in the Greek
11 Sep Paulsen lifetime honour of Brands, has taken a new role as Islands and Eastern Mediterranean,
12 Sep Webjet packages Contiki the Asia-Pacific Regional Manager for focusing on “true cultural immersion”.
12 Sep McEvoy to head TTF board
13 Sep Flight Centre tech launch
iceland’s cool credentials
13 Sep Dream to explore Sydney
14 Sep WTAAA payment push
14 Sep QF targets airport costs
17 Sep Celestyal appoints Williams THIS delegation of senior
tourism officials from Iceland
17 Sep SQ, LH seek Scoot deal
visited Sydney, Melbourne and
18 Sep Regulate airports – ACCC Brisbane for a series of trade
18 Sep Industry overall satisfied events last month, as part
18 Sep Airport investment at risk of the first official Promote
19 Sep TK plots SYD non-stop Iceland mission to Australia.
The visit reflects strong
19 Sep BNE wins IATA conference
growth in arrivals, with Iceland
19 Sep Joyce to head oneworld
room nights by Aussies almost
20 Sep Travel insurance class quadrupling to 49,852 over
20 Sep QF ancillary revenue lead the last four years. Pictured
20 Sep Air NZ route suspensions from left are Þórir Garðarsson, Gray Line Iceland; Þorleifur Þór Jónsson, Promote Iceland;
21 Sep FCTG digital acquisition Íris Tryggvadóttir, Arctic Adventures; Helga Bergrós Bizouerne, Iceland Travel; Bjarni Hrafn
Ingólfsson, Iceland Tours; and Ársæll Harðarson, Icelandair.
21 Sep Qantas, Cathay codeshare
4 travelBulletin OCTOBER 2018
Data Room All the latest statistics from the ABS and BITRE to keep you in the loop.
Domestic On Time ARRIVALS RETURNS
Performance Top 10 destinations, June 18 Top 10 destinations, July 18
August 2018 Source Trend Original Trend Trend Destination Trend Original Trend Trend
(000) (000) Jun 18/ Jul 17/ (000) (000) Jun 18/ Jul 17/
Jul 18 Jul 18 Jul 18 Jul 18
% % % %
China 123.9 153.5 +0.9 +3.0 Indonesia 105.4 125.9 -0.9 +4.5
New Zealand 115.2 132.8 +0.2 +1.9 New Zealand 119.3 125.4 +0.3 -0.3
USA 61.7 57.3 -1.4 -6.8 USA 93.4 106.8 +0.5 +3.7
UK 58.9 39.2 -1.5 +0.2 UK 55.9 92.5 -0.1 +8.3
Japan 37.9 38.6 -0.2 +5.6 Thailand 46.5 57.5 -0.4 -5.4
Singapore 35.3 29.4 -0.9 -5.9 Italy 21.2 47.3 +0.8 +12.2
Hong Kong 26.6 29.1 +1.4 +9.2 China 51.5 43.8 +0.8 +14.0
Jetstar Qantas Malaysia 31.8 28.0 +0.7 -9.8 Singapore 36.7 40.7 +1.2 +13.7
Arrivals on time 76.2% Arrivals on time 83.4% Fiji 28.4 35.7 +0.1 -0.2
India 30.4 22.9 +0.9 +17.7
Departure on time 74.1% Departure on time 84.5% Japan 40.7 32.3 +0.6 +22.4
South Korea 26.0 22.0 +1.7 +3.3
Cancellations 2.6% Cancellations 1.7% All outbound 931.8 1,133.6 +0.3 +5.8
All inbound 766.6 774.4 +0.1 +2.8
Source: ABS Source: ABS
ENDED DECEMBER 2017
International Passengers Carried (thousands) - December 2015 to December 2017
+0
Virgin Australia All airlines
.4%
Arrivals on time 77.9% Arrivals on time 80.0%
-1.6%
Departure on time 80.3% Departure on time 81.5%
Cancellations 1.8% Cancellations 1.8%
+4
DOMESTIC AIR MARKET .8 %
June 2018
-0.8%
Jun 17 Jun 18
Growth Yr to Yr to Growth
+3
% Jun 17 Jun 18 %
INBOUND OUTBOUND
.9 %
+3
-0.5%
Total pax carried 4.70m 4.72m +0.5 59.30m 60.77bn +2.5
.7%
Revenue pax km (RPK) 5.46bn 5.50bn +0.7 69.49bn 70.87bn +2.0 + 0.
Avail seat kms (ASK) 7.06bn 7.00bn -0.8 88.67bn 88.53bn -0.2 1%
Load factor (%) 77.4 78.6 1.2* 78.4 80.1 1.7*
Jul-17
Aug-17
Jul-16
Aug-16
Jan-17
Mar-17
Oct-17
Dec-17
Jan-16
Mar-16
Oct-16
Dec-16
Sep-17
Sep-16
Apr-17
Jun-17
Nov-17
Apr-16
Jun-16
Nov-16
Feb-17
Feb-16
May-17
May-16
Aircraft trips (000) 52.0 49.9 -4.1 641.7 635.1 -1.0 -3.6%
*Percentage points difference +2.3%
Source: BITRE
International Air Market Share
International Passengers by Major Airlines - Year ended December 2017
International passengers by major airline – year ended June 2018 INTERNATIONAL AIR ROUTES
Top 10 city pairs, June 2018
Qantas
QantasAirways, 16.7%
Airways,
City pair Passengers Passengers % of total % change
16.4%
YE Jun 17 YE Jun 18 18/17
Auckland-Sydney 1,604,956 1,546,716 3.8 -3.6
Others, 31.4% Singapore-Sydney 1,462,736 1,519,662 3.7 +3.9
Others, 30.7% Singapore-Melbourne 1,397,996 1,450,040 3.6 +3.7
Jetstar,
Jetstar, 9.1%9.1% Auckland-Melbourne 1,219,532 1,247,393 3.1 +2.3
Singapore-Perth 1,144,221 1,134,679 2.8 -0.8
Hong Kong-Sydney 1,072,024 1,076,578 2.7 +0.4
Auckland-Brisbane 964,570 965,463 2.4 +0.1
Emirates,
Singapore Airlines,8.3%
8.1%
Los Angeles-Sydney 883,685 869,202 2.1 -1.6
China Southern
Etihad Airways, 3.1%
Denpasar-Perth 869,868 865,358 2.1 -0.5
Airlines, 3.1%
China Southern Singapore-Brisbane 798,510 836,844 2.1 +4.8
Etihad Airways, 3.2%
Airlines, 3.1% Singapore Top 10 City Pairs 11,418,098 11,511,935 28.3 +0.8
Emirates, 8.0% Airlines,
AirAsia X,X,4.0%
AirAsia 3.5%
8.1% Other City Pairs 27,242,848 29,107,407 71.7 +6.8
Cathay Pacific Air New ALL CITY PAIRS 38,660,946 40,619,342 100.0 +5.1
Cathay Pacific Air New Zealand, 6.6%
Airways,
Airways, 4.5%
4.6% Zealand, 6.6% Source: BITRE
VirginVirgin
Australia,
Australia, 6.1%
Source: BITRE 6.0%
International Passengers by Uplift/Discharge City Pairs
travelBulletin October 2018 5
Australian Year ended Year ended Year ended % of % Change
State of the industry
MAIN DOMESTIC ROUTES Most popular websites AUSTRALIAN AIRPORTS
Top 10 domestic in travel - agencies International passengers through Australia’s
city pairs, June 2018 July 18 compared with June 18 major international airports, June 18
City pair Passengers Passengers % change Rank Website Visits % Relative Rank City pair Passengers Passengers % of total % change
YE Jun 17 YE Jun 18 share % dif Jul Jun 18 YE Jun 17 YE Jun 18 18/17
(000) (000) July 18 to Jun Sydney 15,559,762 16,431,177 40.5 +5.6
Melbourne- 1 Webjet Australia 13.34 -1.08 1 Melbourne 9,949,458 10,784,070 26.5 +8.4
Sydney 8,974.5 9,250.8 +3.1
2 Expedia Australia 10.50 +0.76 2 Brisbane 5,600,083 5,903,276 14.5 +5.4
Brisbane-Sydney 4,695.7 4,788.1 +2.0 3 Skyscanner Perth 4,423,833 4,354,646 10.7 -1.6
8.99 -1.04 3
Brisbane- Australia Gold Coast 1,104,987 1,070,411 2.6 -3.1
3,500.5 3,556.9 +1.6
Melbourne 4 Wotif.com 7.78 +0.00 4 Adelaide 950,943 998,570 2.5 +5.0
Gold Coast- 5 Flight Centre 5.88 -7.13 5
2,712.7 2,752.4 +1.5 Cairns 648,064 672,167 1.7 +3.7
Sydney 6 Velocity Frequent
Adelaide- 4.37 +13.79 6 Darwin 284,136 251,181 0.6 -11.6
2,413.4 2,487.3 +3.1 Flyer
Melbourne Canberra (a) 63,932 92,917 0.2 +45.3
7 Luxury Escapes 3.33 -1.55 7
Melbourne-Perth 2,048.1 2,057.8 +0.5 Townsville (b) 45,206 39,470 0.1 -12.7
8 Cheap Flights Aus
Gold Coast- 2.49 2.23 9 Sunshine Coast (c) 13,728 13,719 0.0 -0.1
1,992.2 2,045.6 +2.7 & NZ
Melbourne 9 Lastminute.com.au 2.40 -10.61 8 Port Hedland 7,556 7,738 0.0 +2.4
Adelaide-Sydney 1,886.5 1,908.6 +1.2 10 Google Flights Aus Norfolk Island (d) 9,258 .. .. ..
1.92 -6.69 10
Perth-Sydney 1,737.8 1,719.9 -1.0 ALL AIRPORTS 38,660,946 40,619,342 100.0 +5.1
Source: Hitwise
Hobart-Melbourne 1,598.7 1,638.6 +2.5 (a) Scheduled services recommenced Sep 2016 (b) Scheduled services recommenced Sep 2015
(c) Seasonal services only (d) Scheduled services ceased May 2017
Source: BITRE
Source: BITRE
The allegations were serious, in, one where indiscretions,
ranging from ripping off customers real or otherwise, just won’t be
with inflated mark ups, to a “toxic” tolerated no matter how profitable
culture rife with hard-drinking, bullying a company may be.
and harassment. It wasn’t a pretty The market clearly didn’t like
picture, but one denied by the the unpalatable culture that is
retailer. Skroo Turner branded it a said to pervade Flight Centre, or
“beat-up”. the negativity that ensued. Not so
Was it? Should the complaints many years back, I suspect only the
of the few – and it was a few when financials would have truly mattered.
measured against the 10,000 But it is not only Flight Centre’s
employed by Flight Centre in Australia integrity that has been called into
– tarnish the reputation of the question in recent weeks. Meriton
entire company? And when is such was fined a whopping $3m for
insidious behaviour so ingrained that rigging TripAdvisor reviews, while
it becomes an integral part of the Trivago is the subject of Federal
“company culture”, as was alleged. Court action amid claims the
Steve Jones’
“
What is clear is that we are living aggregator misled consumers and
in a delicate era where suspect prioritised advertisers.
Say behaviour, be it of a personal or
professional nature, is being called
The market
clearly
So, in the space of a few short
weeks we have a hotel company
out on an almost daily basis. manipulating online reviews, an
A fuss about nothing or institutional The reaction, therefore, was
didn’t aggregator accused of fooling
unethical behaviour? unsurprising, at least not from like the consumers and the country’s largest
Whatever your view of the individuals or the industry at large unpalatable travel retailer apparently adding
recent Flight Centre shenanigans where the relish that some greeted huge mark-ups to the cost of flights.
– disgruntled or easily offended the retail behemoth squirming under culture that And here is the problem. It is not
ex-staff with an axe to grind, or the national spotlight was inevitable. is said to only that trio of companies to have
an unpleasant culture that needs It was the market reaction which took
pervade suffered reputational damage. It is
addressing, and eradicating – the me by surprise. the wider industry. If it transpired
market didn’t take too kindly to the Despite record financial Flight Trivago did act dishonestly, is it an
allegations contained in last month’s results, released just as the ABC Centre, isolated incident or common place
ABC investigation. investigation went to air, Flight in the sector? Who else attempts to
Even on the back of another solid Centre’s shares lost 18% of their
or the manipulate reviews? And do other
financial result, Flight Centre shares value in next to no time. It highlighted negativity travel agents mark-up flights on
tumbled, wiping countless millions not only the unpredictability of the that ensued the quiet? Those are the questions
”
off the value of the company. At time stock market, but maybe reflected consumers will be asking.
of writing, they had yet to recover. the environment we are operating Trust is hard won, and easily lost.
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Billions at stake AFTA view
in airport stoush
Jayson Westbury, chief executive AFTA
Conflict between Australia’s airlines and privatised airports
is now being played out before the Productivity Commission
Price parity conflicts
as it considers whether greater regulation is needed for the Unfortunately, the debate and conversation within the
country’s major gateways. Australian community about hotel booking sites and the need
After a long and public campaign – in which airlines have to book direct has taken a more confusing turn than perhaps
accused the airports of over-charging and exploiting their was necessary, off the back of a public video rant by prominent
monopoly powers – the parties have now had the chance to Australian Dick Smith. For those that have not managed to watch
put their cases before a formal inquiry as the Productivity the video it can be found on Facebook, but having said that, for
Commission prepares to make recommendations to the most Australian travel agents it will make you cringe.
Federal Government early The ACCC took a decision several years ago to grant
“
next year. permission for the two large American based OTAs and their
Central to the probe is subsidiaries to impose “price parity” clauses within the booking
the question of whether contracts they hold with Australian hotels and motels.
Australian airports the current “light-handed” What that means is that the hotels and motels who have
are currently able to approach to regulation signed up with these OTAs or hotel booking sites are not allowed
use their monopoly has allowed the airports to to price rooms on particular days lower than the price they
develop too much power, provide to the OTA. You might recall that the ACCC pursued one
position to charge leading to soaring profits of the most prominent Australian travel companies for the exact
prices that generate and high charges for both same practice, but in that case relating to airfares.
passengers and airline It has been something that AFTA, along with the hotel industry
excess returns, but
“
users. In its submission associations, has been taking
this is not delivering to the commission lodged up with the ACCC for some
improvements in last month, industry group
ACCC pursued one time. How can it be that a
Airlines for Australia & couple of American companies
quality or efficiency of the prominent
”
New Zealand (A4ANZ) can be granted rights to do
cites analysis by Frontier Australian travel something that the High Court
Economics that found of Australia said an Australian
greater regulation of the airports would deliver more than
companies for the travel company can’t do, when
exact same practice... the applicant to the case was
”
$18 billion in economic benefits.
“Australian airports are currently able to use their exactly the same government
monopoly position to charge prices that generate excess authority – the ACCC?
returns, but this is not delivering improvements in quality or While Dick Smith in his rant is attempting to say that it is
efficiency,” said A4ANZ ceo Alison Roberts. better for Australian small business for consumers to book
“Something has to change if consumers are to be direct rather than by the American OTAs, the problem is that the
shielded from the impact of what is ahead,” she said. message gets all very confused as it unfolds.
“While airlines have been able to keep downward It is important to note that the CEO of the Accommodation
pressure on airfares over the past decade, globally, fares Association of Australia (AAoA) has made it clear to me and is on
are expected to rise next year. It’s time for the airports to be the public record supporting Australian travel agents. However the
part of a genuinely collaborative approach.” downstream impact is a confused message to consumers.
However the airports argue that greater regulation The simple fact is that this complicated messaging has in
would threaten billions of dollars in future investment at fact been caused by the ACCC. Even the chairman of the ACCC
the country’s main gateways. In its own submission, the appears to be confused about what message should be sent to
Australian Airports Association (AAA) says the major airports consumers. He has suggested travellers should book direct by
have invested $15 billion in improvements since 2002, with telephone as they may get a better deal. It is 2018, right? I am
plans to spend a further $20.6 billion in the next decade. sure that a message to most people that includes picking up the
“Policy reform solely designed to reduce prices, as phone is unlikely to resonate as the best way to make a booking
opposed to enhance efficiency… will place future investment for a hotel.
at risk,” AAA’s submission said. The ACCC should apply the same rules to these American
It also dismissed claims that higher airport charges OTAs as applies to all Australian OTAs and for that matter travel
automatically lead to higher airfares, and says there is no agents. A level playing field should be made available to all
evidence that savings would be passed on to consumers. suppliers and distributors regardless of the format, and for my
“Even if modest reductions were to be imposed by a money if the Australian High Court has interpreted the law in a
regulator, these would simply enhance the profits of airlines,” clear way then that should apply.
the airports coalition said.
8 travelBulletin OCTOBER 2018Tourism Australia Asia push
Tourism Australia last month launched its
biggest ever campaign targeting key South To the 82% of
Singaporeans
who think
and South East Asian markets, with the Australia is
all about
aim of challenging traveller stereotypes of cute, furry
animals
Australia as a tourism destination. The $10 Think again
million “Undiscover Australia” promotion
debuted in Jakarta, Indonesia, with the aim
of bridging the gap between intention to
visit and actual arrivals by “providing a more
multidimensional understanding of Australia’s
high-quality experiences beyond the expected
tourism icons”.
Tourism Australia managing director
John O’Sullivan said the region’s proximity, Port Lincoln,
SA
UnDiscover
Australia
emerging middle class, improving aviation
capacity and increasingly competitive air
fares presented enormous opportunities for
Australian tourism. “One of the challenges the aim of showing there is “much more by an “airline marketplace” which brings
we constantly face is that people from this to Australia than the typical stereotypes of together multiple airlines and online
region feel they know everything about us,” koalas, kangaroos, the outback and well- travel agents to offer competitive airfares,
he said. “This campaign will shine a spotlight known icons”. particularly highlighting the proximity of some
on some of our undiscovered and hidden By showing a different side of the country, Australian destinations to Asia which makes
holiday gems,” O’Sullivan added. Tourism Australia believes it will give high- it an ideal weekend getaway. Initially slated
Different creative elements have been value travellers in the region compelling new for a four month run, Undiscover Australia
developed for the major markets of India, reasons to visit. has potential to be extended to additional
Indonesia, Malaysia and Singapore, with The campaign is also being supported markets in the future.
WIN A TRIP TO
MEET
SOUTH
AFRICA
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VISIT SASPECIALIST.SOUTHAFRICA.NET T&C apply.Issues & trends
Clean sweep for Aust Cruise Association
The huge pipeline of newbuild cruise ships
under construction means it is essential that
cruise lines, destinations, ports and ground
operators work together to deliver quality
experiences and itineraries, according to
Carnival Australia president Sture Myrmell.
Myrmell, who is also the chairman of Cruise
Lines International Association Australasia,
was one of the keynote speakers at last
month’s Australian Cruise Association
(ACA) conference in Broome, Western
Australia, with his presence a clear
reflection of the conference theme of
“Forging stronger relationships”.
Myrmell said the partnership between ACA
was going from strength to strength, with a
combined 2018 economic impact report to
be released this month along with a joint
sustainability report which will showcase how
the cruise sector is working on a range of Pictured lit up by a Broome Cable Beach sunset are WA Tourism Minister Paul Papalia, ACA CEO Jill Abel, Carnival
Australia president Sture Myrmell, and Royal Caribbean Cruise Lines vice president Australasia Susan Bonner.
environmental fronts. He also highlighted the
huge opportunity still available for cruise in
Australia. Despite the local market having a Bonner, also spoke at the ACA conference, a second berth sooner than we thought”.
world-leading penetration of 5.7%, “that still urging attendees to prepare for the arrival The conference wrapped up with a
means more than 94% of Australians have of ever-larger cruise ships. She noted the fascinating breakfast presentation from
not cruised,” he said. strong competition from other ports across the wardens of the nearby Broome Bird
The Carnival president also dismissed the globe for cruise ship deployments, with Sanctuary, followed by the ACA annual
concerns about worldwide cruising growth several Asian destinations already able to general meeting where a new management
plateauing, noting that with an annual welcome Oasis-class vessels. Bonner urged committee was voted in. Officebearers include
global total of about 27 million passengers the industry to work collaboratively to come chairman Grant Gilfillan from Ports NSW, ACA
the entire sector is still smaller than many up with solutions to manage the potential CEO Jill Abel, Thor Elliott of Fremantle Ports,
key tourism destinations such as Paris, influx of large numbers of cruise guests and Anne McVilly of Port Arthur Historic Site, Jay
Venice, New York and Orlando. The pace of still maintain passenger satisfaction. McKenzie from Bob Wood Cruise Group,
construction of new ships means that “at full The ACA conference included a Christine Cole of Tourism WA, Martin Bidgood
capacity we can only grow globally at 3-5% – presentation from Port of Brisbane ceo Peter from Intercruises and Tourism NT’s Scott
that is measured, steady growth,” Myrmell Keyte, who confirmed that bookings for the Lovett. During the event ACA CEO Jill Abel
said. He noted that Australians are a “nation 2020/21 season had opened amid strong paid tribute to the late Tony Clementson who
of sea-huggers” with cruise continuing demand from a variety of cruise lines. The had represented the NT on the committee,
to afford a great option for domestic new facility, which has been underwritten and who died suddenly in late August.
holidaymakers, while inbound cruise tourism through a long-term partnership with Carnival The 2019 Australian Cruise Association
is also seen as a huge opportunity. Corporation, is scheduled to open in the conference will take place in early September
Royal Caribbean Cruise Lines’ recently second quarter of 2020, with Keyte saying next year in Geelong, one of Victoria’s
appointed vice president Australasia, Susan interest so far indicates “we’re going to need emerging cruise destinations.
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or visit driveaway.com.auTrafalgar team photo featuring Sally Sylvester, Trafalgar national sales manager; Dee Morocco, Trafalgar chief marketing officer; Gavin Tollman, Trafalgar CEO; Matt Cameron-Smith, Trafalgar Australasia managing director; and Cassie Zuell, Trafalgar head of marketing. Trafalgar debuts domestic program Trafalgar global CEO Gavin Tollman has unveiled a in ways never previously imagined. Trafalgar- new program of tours in Australia and New Zealand, branded coaches on local roads will feature the with the expansion meaning the Travel Corporation brand’s rainbow colouring, and the programs brand now features programs in all seven continents. feature signature Trafalgar touches such as Developed in conjunction with sister brand AAT ‘Hidden Gems’ and ‘Be My Guest Experiences’. Kings, the 2019 Trafalgar Australasia brochure Matthew Cameron-Smith, the company’s comprises 12 trips in Australia ranging from five to Australian managing director, told travelBulletin 15 days, as well as four local “mini stays”. The New the huge contingent of Trafalgar past Zealand range includes five options taking in the North passengers was a prime market for the new and South islands, with Tollman saying the program program, which will allow them to have the will allow Aussies and Kiwis to “see your home and convenience of a Trafalgar guided holiday neighbouring regions in a whole new light”. close to home. “It costs twelve times as Trafalgar’s brand direction for 2019 focuses on much to acquire a new customer. We have “The Good Life,” inviting passengers to make “real been so successful over the past couple connections” with their destinations; have hassle-free of years, and some of that has included a holidays with “real ease”; and experience “real joy” as huge growth in repeat business. It’s an easy they take in people and places in their own backyard sell,” he said.
Issues & trends
Cosmos LITE has TTF view
Margy Osmond, CEO,
a-la-carte Tourism & Transport Forum Australia
Newly appointed Globus Family of Brands managing
building cruise tourism
director for Australasia, Gai Tyrrell, last month unveiled a Cruise season was kicked off a few weeks ago with Princess
new Cosmos Lite touring option, combining the essential Cruises’ Majestic Princess docking in Sydney Harbour, bringing
features of Cosmos trips with a personalised approach to more than 3000 passengers to the city.
daily itineraries. To roll out in 2019, Cosmos Lite initially The cruise industry is growing rapidly and new figures show
features ten journeys combining major cities with lesser- Australia’s cruise passenger numbers hit record numbers in 2017
known, undiscovered destinations across Europe. with 1.34 million people enjoying an ocean cruise.
Tyrrell said Cosmos Lite trips include city-to-city Cruise tourism is a critical part of the Australian tourism
transportation in motor coaches with complimentary wi-fi, offering – we need to support and nurture it. This is an industry
as well as accommodation in comfortable hotels with daily that already pours billions of dollars into the Australian
breakfasts. A professional tour director is available to help economy every year bringing visitors from all over the world
curate the best sightseeing, dining and entertainment to taste the wonders of
“
options, along with a range of MyCosmos optional Australia. Passengers on
excursions which are available for purchase as desired. average are spending $527 a
“Cosmos Lite gives travellers an innovative and Passengers on day in a port before or after
independent touring option, with a new way to see, explore average are a cruise.
and experience the world around them,” Tyrrell said. The We need certainty of port
program “takes care of getting travellers to each destination spending $527 a options and we need the new
and coordinating accommodation, but what they fill their day in a port before facilities to cope with the high
days with – and the activities they plan – are completely up
or after a cruise demand during the summer peak.
”
to them”. Recently it was announced that
A new CosmosGo app is also available, offering a Botany Bay will most likely be
range of entertainment, dining, sightseeing and shopping the option for a new cruise ship
suggestions. Tyrrell said Cosmos Lite holidays give terminal in New South Wales. While most agree that the iconic
autonomy back to the traveller to fill their days according Sydney Harbour is the money shot, if Port Botany is an option,
to their specific interests, passions and budget, “without let’s get on with it!
having to stress about the itinerary fundamentals.” Rightly, the industry is very keen to see how the business
case stacks up and the real feasibility of Port Botany, for both
government and the tourism sector. The ingredients of this
quintessential Sydney experience should not be taken lightly.
Failure to find the right solution also has ramifications for our
near Pacific neighbours who will also miss out on cruise traffic if
Facebook takes flight Sydney loses its lustre as a cruise hub.
Thinking nationally, for many cruise companies the vital
destination in Australia is Sydney – if they cannot get the access
they need in Sydney they will not come and therefore will not visit
a wealth of other Australian regional destinations.
Fixing Sydney, the national gateway, is a ‘must’ if we are going to
have a slice of the global cruising ‘pie’ and see those benefits flow
through to the wider Australian economy. We have to get it right.
Social media giant Facebook continues to wring the most
out of the travel value chain, with an initiative allowing airlines
to target prospective travellers even before they search a
particular booking website or app. The new “Flight Ads”
solution tracks Facebook user intentions, detecting any plans
to take a trip and allowing relevant advertisements to be
served to them, even before they decide on a final destination.
Facebook Australasia’s head of travel, Paul Nahoun, said it
was important for travel advertisers to reach the right people
with the right message, personalised depending on where
they are in their decision journey. He said testing of the
platform by Air France in the USA had boosted search traffic to
the carrier’s website, and lowered the cost per search by 66%.
12 travelBulletin OCTOBER 2018Global push for virtual cards
The World Travel Agents Associations Alliance (WTAAA)
has urged airlines to look beyond “blanket payment
“
policies” and consider allowing the use of new, lower-
cost virtual credit card options for settlements with
travel agents. A statement issued by WTAAA chair Otto
de Vries from the Association of South African Travel The result is
Agents suggests a “more holistic view must be taken... that airlines
instead of simply saying ‘no’ to card payments because
of the perceptions around cost”.
and other
De Vries noted that IATA’s NewGen ISS and parts of the
Transparency in Payments initiatives (travelBulletin travel value
July 2018) aim to address the changing payment
environment and reduce risk – but the “one dimensional
chain are
approach” has only focused on a single virtual card type missing out on
as being representative of all virtual cards. ”Rather than the benefits
encouraging commercial discussions, this has inhibited
them. The result is that airlines and other parts of the
that other low
travel value chain are missing out on the benefits that cost virtual
other lower cost virtual cards offer,” he said. cards offer same goes for travel agents... they no longer have to take
”
The WTAAA chair noted that currently billions of on the risk of forward-dated travel, thanks to chargeback
dollars are settled between travel agents and other protection they can draw on should an airline fail”.
travel suppliers using systems that offer all of the “If the airline industry is truly behind a new generation
risk-mitigation aspects desired by NewGen ISS but in a of payments, cards need to be directly in the conversation
“modern way”. De Vries said the use of virtual cards by and simplicity needs to prevail, rather than further heavy-
travel agents mean airlines are guaranteed to receive handed costly compliance that serves no real purpose,”
100% of their funds within a matter of days. “And the De Vries concluded.Cover
The
million dollar
The recent corporate reporting season for
publicly listed companies has seen some
record results, with many businesses in
the travel and tourism sector rewarding
shareholders with strong performances,
dividends and share price increases. But how
have the leaders of these organisations fared
this year when it comes to their own personal
remuneration? Bruce Piper delved into the
data to work out who the travel and tourism
industry’s top earners were in 2017/18.
The 2018 Million Dollar Club
1. Graham Turner Flight Centre CEO $24,891,709
2. Alan Joyce Qantas CEO $11,475,335
3. Jamie Pherous Corporate Travel Management CEO $8,109,756
4. Chris Luxon Air New Zealand CEO (NZ$) $4,963,118
5. Andrew Burnes Helloworld CEO $4,494,618
6. Cinzia Burnes Helloworld executive director $4,455,672
7. Gareth Evans Jetstar Group CEO $4,072,319
8. John Borghetti Virgin Australia CEO $4,015,700
9. Tino La Spina Qantas CFO $3,537,292
10. Andrew David Qantas CEO domestic $3,536,959
11. Lim Kim Hai Regional Express Executive Director $3,465,540
12. Lesley Grant Qantas CEO Loyalty (to 31 Oct ‘17) $3,268,302
13. Melanie Waters-Ryan Flight Centre COO $3,084,520
14. Chris Galanty Flight Centre EGM Europe & South Africa $3,073,203
15. John Guscic Webjet managing director $2,998,537
14 travelBulletin OCTOBER 2018club
16. Luke Trouchet Apollo Tourism and Leisure ceo $2,955,992
17. Karl Trouchet Apollo Tourism and Leisure cfo $2,812,131
18. Unnamed Air NZ exec ?Jodie King (chief people officer) $2,810,000
19. Dean Smith Flight Centre EGM The Americas $2,680,432
20. Olivia Wirth Qantas CEO Loyalty (from 12 Feb ’18) $2,544,874
NOTE
21. Unnamed Air NZ exec ?Cam Wallace (chief commercial officer) $1,990,000
22. Unnamed Air NZ exec ?Bruce Parton (chief operations officer) $1,810,000 To put the salaries of
the top execs into real
23. Adam Campbell Flight Centre CFO $1,784,751 terms, this chart shows
24. Jane Hastings Event Hospitality ceo $1,682,959 how many private jets
each one could buy with
25. Unnamed Air NZ exec ?David Morgan (chief flight ops officer) $1,630,000
their 2017/18 earnings.
26. Laura Ruffles Corporate Travel Management COO $1,585,988 The cheapest private
27. Alison Webster Qantas CEO Int’l (from 01 Nov ’17) $1,552,835 jet costs just under $3
million Australian dollars
28. Robert Sharp Virgin Australia Group Executive $1,437,393 (called the Cirrus Vision
29. Matthew Duff Event Hospitality commercial director $1,111,599 Jet), and can carry five
adults non-stop between
30. Gregory Dean Event Hospitality finance director $1,006,051
New York and Dallas.
travelBulletin October 2018 15Cover
F
ancy a new Lamborghini, Tesla or tourism companies have their packages came in 13th on the Million Dollar Club
even a Bugatti supercar? How about weighted towards driving performance in list with a total package of just over $3
a private jet? Such aspirations are terms of improving shareholder returns, million – just ahead of FCTG executive gm
beyond the wildest dreams of many and so it’s only right that if they achieve Europe Chris Galanty and Dean Smith, who
of us, but for the top earners in or exceed targets they are rewarded for heads up the Americas for Flight Centre,
the Australian travel and aviation sector they doing so. 2017/18 produced some bumper who earnt $2.6 million. As well as good
are easily achievable realities. Based on the outcomes which were reflected in short base salaries and bonuses, most of the
now publicly released remuneration reports and long-term incentive payouts – but as Flight Centre top earners also reap rewards
which every public company must include in in previous years, the executives who also from the company’s Business Ownership
its reporting, it has been a pretty good year happen to be major shareholders are the Scheme (BOS) where they hold convertible
all round, and senior executives have reaped ones who are most likely to be out shopping notes reflecting the performance of particular
the benefits both in terms of their base for a new Gulfstream. business units. There’s also a further bonus
salaries and bonuses, not to mention those scheme to incentivise them to stick around,
all-important dividends.
Travel agent top
“
Every company on the Australian
Stock Exchange must include a formal earners
Remuneration Report in its annual report to Flight Centre has had a cracker of a year.
shareholders. The document is required to Although the company’s share price has ...the executives who
detail payments to the company’s directors recently dipped from record levels, the also happen to be
as well as to designated “key management powerhouse surpassed just about every
major shareholders are
personnel” and include everything from base target in 2017/18, achieving profitability
salary to bonuses, to share based incentives in all regions, an 8.5% increase in Total the ones who are most
and even superannuation and travel fringe Transaction Value to almost $22 billion and a likely to be shopping
benefits. Some fairly strong glasses are 14.5% increase in net profit after tax to $264
for a new Gulfstream...
”
required to comb through the fine print, but million. With results like that it’s no wonder
the effort is worth it, with the reports making that cEo Graham Turner once again came in
for fascinating reading. The information at the top of this year’s travelBulletin Million
generally details how salary packages are Dollar Club. Including bonuses his salary
calculated, and gives an insight into how the package was a somewhat modest (if you with extra BOS payments based on their
chiefs are incentivised to perform. There are can call it that) $1.43 million – but the hefty length of service.
a few juicy nuggets in some cases too, such $1.54 per share dividend payout saw his At Helloworld Travel it’s a similar story,
as details of sign-on bonuses, redundancy total income soar to almost $25 million, an although not quite on the same scale. The
payouts and extra payments for relocation. increase of about 15% on the prior year. top earners are ceo Andrew Burnes and
Most of the designated “key management Other Flight Centre executives did well too. executive director Cinzia Burnes, who are
personnel” in Australia’s listed travel and Chief operating officer Melanie Waters-Ryan also the company’s largest shareholders.
Travel Agent top earners (top 15)
Name Company Base salary Other payments Share incentives Total salary Dividends Total income
Graham Turner Flight Centre managing director $654,951 $762,615 $0 $1,417,566 $23,474,143 $24,891,709
Jamie Pherous Corporate Travel Management MD $460,319 $274,837 $0 $735,156 $7,374,600 $8,109,756
Andrew Burnes Helloworld ceo $480,000 $28,620 $0 $508,620 $3,985,998 $4,494,618
Cinzia Burnes Helloworld executive director $480,000 $28,620 $0 $508,620 $3,947,052 $4,455,672
Melanie Waters-Ryan Flight Centre chief operating officer $674,957 $595,719 $1,735,727 $3,006,403 $78,117 $3,084,520
Chris Galanty Flight Centre EGM Europe & Sth Africa $547,057 $252,275 $2,270,788 $3,070,120 $3,083 $3,073,203
John Guscic Webjet managing director $850,000 $590,938 $785,789 $2,226,727 $771,810 $2,998,537
Dean Smith Flight Centre EGM The Americas $812,501 $541,668 $1,322,114 $2,676,283 $4,149 $2,680,432
Adam Campbell Flight Centre CFO $840,821 $626,431 $314,983 $1,782,235 $2,516 $1,784,751
Laura Ruffles Corporate Travel Mgt COO $588,219 $955,244 $0 $1,543,463 $42,525 $1,585,988
Chris Thelen Corporate Travel Mgt CEO Nth America $579,524 $222,776 $0 $802,300 $70,956 $873,256
Steve Fleming Corporate Travel Mgt CFO $486,417 $353,082 $0 $839,499 $9,047 $848,546
Larry Lo Corporate Travel Mgt CEO Asia $501,051 $312,268 $0 $813,319 $33,996 $847,315
Shelly Beasley Webjet group COO $495,287 $216,077 $49,267 $760,631 $33,202 $793,833
Michael Burnett Helloworld CFO $450,000 $20,757 $128,333 $599,090 $90,000 $689,090
16 travelBulletin OCTOBER 2018You can also read
