AWARDS TRAVEL DAILY Honouring travel agents and suppliers for their industry support through COVID-19 - travelBulletin
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SEPTEMBER 2020
TRAVEL DAILY
AWARDS
Honouring travel agents and
suppliers for their industry
support through COVID-19
More information at
awards.traveldaily.com.au
TRAVEL DAILY
AWARDS
Travel Daily has seen a massive 21 Aug nominations open
number of nominations from
across the industry for agents
and suppliers who have gone 31 Aug nominations close
above and beyond during this C RIM
extremely challenging time. E S CE
NE · D
Nominations have now closed 4 Sep finalist voting opens O NOT
and we have whittled it down
to the finalists.
Vote now for those who you 14 Sep finalist voting closes
believe have best supported
the industry and deserve to be
recognised specially for their
Winners announced
hard work.
Finalist voting begins 4 Sep and closes 14 Sep
Click here to vote for the finalists now!
More information at
awards.traveldaily.com.au
SEPTEMBER 2020
SORRY
SEEMS TO BE THE HARDEST WORD
CR OS
S · CR
IM E S
CE N E
· DO N
?
OT CR
O SS · C
R IM E S
CE NE ·
DO N O
T C RO S
S · CR
IM E SC
E
? ?
BESTSELLER
Follow
the lights
––– Experience some of the world’s most
beautiful landscapes and the wonder of the
Northern Lights on this 18-day adventure.
NEW 2021/2022 DATES
18 DAYS 2021 2022
OSLO–HELSINKI 27, 29 Sep 3, 11, 17, 20, 26 Jan
1, 7, 15, 21, 26 Oct 2, 8, 11, 19, 24 Feb
September–March 1, 6, 9, 12, 17, 23, 28 Nov 2, 4, 7, 15, 18 Mar
4, 9, 12, 15, 17, 20, 23, 26, 28 Dec
(Christmas tours)
Inclusions Luggage service from hotel in
Oslo to hotel in Bergen (1 bag
English speaking guide per person)
from start to finish
Luggage service at all hotels
Unique to Hurtigruten, the (starting with luggage OUT in
Northern Lights Promise.* Oslo, and ending with luggage
IN in Helsinki)
Norway in a Nutshell, Flåm
Railway journey Return Ferry ticket to Tallinn
City tours of Oslo, First class coach
Bergen, Helsinki & Tallinn from Kirkenes to Helsinki
Reindeer Farm visit (sled ride, Daily breakfast, 6 lunches
depending on weather) and 11 dinners
Husky Farm visit (sled
ride, depending on weather)
Escorted Small
Santa Claus Village visit Group Tours
Siida museum visit (Max 22 adults)
4 star accommodation standard
11 nights’ hotel
Price from $ 7,950** pp
accommodation (1 night in Upgrades
glass igloo) & 6 nights’ cruise Cabin upgrades available on
accommodation in a cabin cruise portion, speak to our
category of your choice team for details.
go to hurtigruten.com.au or call 1300 322 062
*Northern Lights Promise, unique to Hurtigruten, if the Northern Lights do not appear during the journey we will give you another 6 or 7-day Classic Voyage
FREE OF CHARGE. Find out more at hurtigruten.com.au/nlp
** Based on a Polar Outside N2 cabin twin share.
CONTENTS
12
FEATURES
24 New South Wales
Adam Bishop discovers you
don’t have to venture too
far from Sydney to immerse
yourself in nature.
COVER STORY
12 Sorry seems to be the
hardest word
The Ruby Princess incident has
led to several official inquiries,
the demonisation of the cruise
industry and a relentless night-
after-night series of negative
mainstream media reports
about the horrors of cruising.
Bruce Piper traces how it all
went so wrong.
MONTHLY
02 State of the industry
08 Issues and trends
24 20 Cruise
26 Last word
COLUMNS
02 From the publisher
06 Steve Jones
08 AFTA View
23 CLIA View
09
This month’s contributors
Steve Jones, Joel Katz, Darren Rudd
Front cover: ©Princess Cruises
This page bottom right: Experience the TreeTops Walk at Illawarra Fly ©Destination NSW
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
Editorial and Production Manager – 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@traveldaily.com.au ART www.travelbulletin.com.au
Design – Sarah Beyer
6,830
5,355 Avg Net Distribution per Issue
Editorial team – Myles Stedman, Adam
travelBulletin is part of the
This publication is independently audited under the AMAA's
CAB Total Distribution Audit.
Publishing Director – Jenny Piper Business Publishing Group
Reporting Period: 16
Statement
1 Apr 2016to– 31
Apr2018 16 Mar
Sep 2019
2016 - Publisher Bishop, Sarah Beyer family of publications
travelBulletin SEPTEMBER 2020 1
STATE OF THE INDUSTRY
From the
“THIS is not the end. This is nobody any good.
not even the beginning of the We know there is huge
end, but it is, perhaps, the pent-up demand for travel,
publisher end of the beginning.”
Those fateful words
and any border openings,
under any type of conditions,
Bruce Piper uttered by Sir Winston will see a rebound, however
Churchill after a 1942 bleak things look now.
victory in Egypt while Britain Despite governments
was in the depths of World seemingly doing little to
War II may also resonate in provide certainty for a
our industry’s ongoing battle restart, there is no doubt
with COVID-19. that much work is going on
Unless a vaccine is behind the scenes. And in
produced – a process the end we are all receiving
which despite US President a perhaps much-needed
Trump’s Project Warp lesson in patience.
Speed is likely to take some Travel and tourism will
years – we need to learn return and, like all disruption,
to live with the reality of COVID-19 is already driving
coronavirus and that also innovation in terms of
means coming to grips with new product development
the political landscape which alongside of course huge
is clearly highly risk averse. amounts of work on health
Whatever some people and safety protocols.
may think about the Unfortunately, as we all
seriousness of COVID-19, know, this virus is particularly
the ongoing climate of brutal on this industry that
fear is driving our leaders we all love so much.
to ever more conservative As we reflect on the words
approaches, and I believe of Britain’s wartime leader, I
the travel and tourism sector believe we can be reassured
must simply accept that that things will improve.
things will not be the same It took two more years for
again, perhaps ever. the Allies to achieve victory
Lamenting the “good old in Europe – hopefully our
days”, which ended about trajectory out of COVID-19
six months ago, does will be much shorter.
IN Entire steps into the rail breach business “won’t be able to offer all customer
service channels to every single agent”.
BRIEF RAIL Europe’s Australian and New Zealand
operations, which also traded for many years
Rail Europe has had a chequered career in
recent years, particularly with a somewhat
locally under the highly respected Rail Plus confused brand message when it switched to
brand, have been another victim of COVID-19, the Rail Europe moniker while continuing to
with the business set to undergo a significant assure the industry that “we sell more than
downsizing including the closure of its Great just Europe”. However that’s all over now, with
Train Journeys division. Most of the team the business transitioning to a Paris-based
have now left the company, with chief Richard booking platform at the end of this month.
Leonard confirming that the much smaller However Entire Travel Group’s Greg
2 travelBulletin SEPTEMBER 2020
McCallum, who worked at Rail
Plus for more than a decade BELLES OF THE TRAVEL BALL
from the early 2000s, has
seen a major opportunity with
the Rail Europe changes and
launched a new Great Train
Journeys division within the
Entire business. McCallum
said the new program would
be introduced to agents as
the industry emerges from
the COVID-19 pandemic.
STA Travel insolvent
THE collapse of STA Travel
last month marked the
end of an era, with Caspar QUEENSLAND-BASED TravelManagers members Adela
Urhammer, CEO of STA’s Backhouse and Emma Ross last month celebrated
Swiss-based parent company, the support they had received from their Business
declaring insolvency which Partnership Manager, Karen Dowling, in the creation
has seen the closure of its of their Belle Adventures touring product, which was
27 stores across Australia, developed to “give women a much-needed break from
as well as 52 UK-based the juggling act”. Belle Adventures has rapidly pivoted
outlets. It was a sad end to deal with COVID-19 and is now offering a range of
for the business which was domestic short break getaways.
founded in Melbourne in the
late 1970s, growing out of
what was formerly named
“ CATO’s radical plan
Stewart Moffat Travel. travel demand remains low.
Locally administrators from A restructure of operations
Deloitte have been appointed We are in New Zealand has seen THE Council of Australian
Tour Operators last month
to the Australian entity, and confident staff numbers cut by 160,
unveiled a draft discussion
have advised customers while the overall result was
they are “not currently in a that when impacted by significant non- paper for the future of the
position to honour any credit they can cash writedowns of the value Australian travel industry,
for cancelled trips”. of Helloworld’s wholesale in the hope of sparking
travel, our debate about how things
and inbound operations
customers could be reshaped in a post-
HLO rides the storm as well as the book value
will need of TravelEdge which the COVID-19 world.
HELLOWORLD Travel company purchased just last CATO is proposing that the
Limited has reported a $70 the help of October for $22.7 million. AFTA Travel Accreditation
million loss for the year to their travel CEO Andrew Burnes said Scheme be broadened
30 June, but believes it is beyond just travel agents, to
well positioned to flourish
professional the last few months had
become administered jointly
been the most challenging
once the “perfect storm” of more than period in the company’s by AFTA, CATO and CLIA,
COVID-19 subsides. Heavy ever history. However travel will each of which would set
”
cost-cutting and the recent return, he believes, noting accreditation standards for
equity raising has given the “we are confident that its own members.
company enough money Andrew Burnes, when they can travel our The plan also postulates
for operating and capital Helloworld CEO customers will need the help the creation of a ‘user
expenditure beyond the end of their travel professional
of 2022, even if international more than ever”. Continues over page
travelBulletin SEPTEMBER 2020 3
STATE OF THE INDUSTRY
“
Continues from previous page on these highly sensitive significant, given the
matters...the chances of pressures on the industry
pays’ consumer protection due to COVID-19. “For
success are not elevated
scheme, which would be
as a result of publicly airing AFTA governments to listen, you
funded by a levy on all
bookings through ATAS
these issues in this way,” continues have to be big,” he told
was the terse response travelBulletin.
Accredited Entities. This to lobby on “Webjet is an influential
from AFTA Chairman Tom
policy would be administered
Manwaring. Meanwhile CLIA these highly and significant player in our
by ATAS in conjunction with
an insurance provider, and
acknowledged the report, but sensitive sector and we welcome them
noted that as a global trade as an AFTA member and
endorsed by the Australian
association it “may therefore
matters... ATAS-accredited agent at a
Competition and Consumer
be limited in its ability to the chances time when industry unity and
Commission.
CATO Chairman Dennis
become directly involved as of success a combined voice is more
suggested”. important than it has ever
Bunnik said the plan would are not been,” he said.
significantly broaden ATAS elevated
membership and bring many Webjet joins AFTA! Rudd also confirmed the
non-accredited businesses AUSTRALIAN Federation of
as a result impact that the pandemic
was having on AFTA itself,
“into the fold” while the Travel Agents CEO Darren of publicly with the Federation taking
consumer protection levy
would “encourage bookings
Rudd has firmly defended airing these the unprecedented step of
a decision to allow Webjet reducing its office hours to a
through ATAS accredited Limited to become a issues in Monday to Wednesday three
businesses”. The draft this way
”
member of AFTA, after the day week effective from this
received a lukewarm move was widely criticised month. He noted that with
reception from AFTA which by members with memories fees waived, the “economic
said the issues raised, on of Webjet’s longstanding Tom
reality” was that costs
the eve of a major Budget anti-agent TV commercials. Manwaring,
AFTA Chairman
needed to be cut to ensure
submission, had already Rudd acknowledged the the organisation survived
been the subject of long- anger from across the the pandemic, with other
term discussions with industry, but said having measures including possibly
Government. Webjet as part of AFTA at relocating the AFTA office to
“AFTA continues to lobby this time was particularly cheaper premises.
HEADLINES
03 Aug goPassport safety plan 19 Aug CTM reports $8.2 million full year loss
05 Aug Tigerair Australia brand to be discontinued 19 Aug Aeronology offers free setup
10 Aug AFTA pushes for PMC funds 19 Aug Flight Centre to shut down Infinity
11 Aug Rail Europe restructures 20 Aug STA Travel files for insolvency
13 Aug Flight Centre profits collapse 20 Aug Travel Money Oz to temporarily hibernate
13 Aug CATO releases standard T&Cs 24 Aug QF announces departure of Tino La Spina
14 Aug Entire adds rail 25 Aug AFTA lauches mental health program
14 Aug Princess Cruises welcomes Rudy report 25 Aug Virgin creditors to receive up to 13%
17 Aug New AAT Kings CEO named 26 Aug CATO releases industry reform paper
17 Aug AFTA cuts hours to three days per week 27 Aug Flight Centre confirms $849 million loss
4 travelBulletin SEPTEMBER 2020
DATA ROOM
DOMESTIC ON TIME ARRIVALS RETURNS
PERFORMANCE Top 10 destinations, July 2020 Top 10 destinations, May 2020
March 2020 Source Original % change % change Source Original % change % change
- original - original - original - original
Jun 20/ Jul 19/ Jun 20/ Jul 19/
Jul 20 Jul 20 Jul 20 Jul 20
New Zealand 1,540 -43.6 -99.1 China 6,610 +59.0 -94.9
UK(a) 630 -20.5 -99.0 India 5,490 +172.7 -87.6
China 620 -48.1 -99.7 New Zealand 3,790 +4.8 -97.7
USA 560 +21.7 -99.1 UK 3,640 +29.1 -93.8
India 480 -64.7 -99.1 Malaysia 2,240 +460.5 -94.1
Malaysia 290 +307.1 -99.3 France 1,890 +53.0 -89.3
Philippines 220 -24.7 -98.9 USA 1,490 +13.1 -97.8
Jetstar Qantas Indonesia 200 -7.9 -99.2 Germany 1,440 +46.3 -91.0
Arrivals on time 80.6% Arrivals on time 86.1%
Pakistan 150 -65.7 -96.4 South Korea 1,420 +9.6 -93.7
Departure on time 78.5% Departure on time 87.0%
Singapore 140 +0.7 -99.5 Indonesia 1,210 +121.5 -95.9
Cancellations 26.8% Cancellations 11.4%
ALL ARRIVALS 18,300 -29.1 -99.1 ALL RETURNS 57,000 +42.2 -96.8
Source: ABS Source: ABS
-36
Virgin Australia All airlines
.5 %
Arrivals on time 82.8% Arrivals on time 84.2%
-27.4%
Departure on time 85.1% Departure on time 85.4%
Cancellations 22.7% Cancellations 17.3%
-22
DOMESTIC AIR MARKET .5%
June 2020
-24.0%
Jun 19 Jun 20 Growth Yr to Yr to Growth
-2 5
% Jun 19 Jun 20 %
-26.3
.8 %
Total pax carried 4.71m 0.38m -91.9 60.98m 45.24m -25.8 -2
9.6
Revenue pax km (RPK) 5.50bn 0.37bn -93.3 71.08bn 52.80bn -25.7 % -2 7
%
Avail seat kms (ASK) 7.03bn 0.69bn -90.1* 88.53bn 66.61bn -24.8 .5 %
Load factor (%) 78.3 53.3 -25.0 80.3 79.3 -1.0*
Aircraft trips (000) 51.1 10.3 -79.8 634.1 491.9 -22.4 -26.5%
*Percentage points difference -26.5%
INTERNATIONAL AIR MARKET SHARE
Share of passengers carried – June 2020 INTERNATIONAL AIR ROUTES
Top 10 city pairs, June 2020
Others, 19.9%
City pair Passengers Passengers % of total % change
YE Jun 19 YE Jun 20 20/19
Qatar Airways, 32.0% Auckland-Sydney 1,581,489 1,162,126 3.8 -26.5
Singapore-Melbourne 1,626,826 1,145,893 3.7 -29.6
Singapore-Sydney 1,510,858 1,121,086 3.6 -25.8
Singapore Airlines, 2.6% Auckland-Melbourne 1,244,074 914,245 3.0 -26.5
China Eastern Airlines, 2.6% Singapore-Perth 1,106,883 841.560 2.7 -24.0
Hong Kong-Sydney 1,231,958 781,811 2.5 -36.5
Asiana Airlines, 3.7% Singapore-Brisbane 902,595 699,229 2.3 -22.5
Auckland-Brisbane 951,788 690,272 2.2 -27.5
China Southern Airlines, 4.2% Los Angeles-Sydney 903,744 655,989 2.1 -27.4
Denpasar-Perth 880,596 649,188 2.1 -26.3
Top 10 City Pairs 11,940,811 8,661,399 28.2 -27.5
Cathay Pacific Airways, 4.6%
Other City Pairs 30,180,193 22,070,713 71.8 -26.9
Air New Zealand, 14.3% ALL CITY PAIRS 42,121,004 30,732,112 100.0 -27.0
Air India, 4.7%
Source: BITRE
Emirates, 5.7% United Airlines, 5.8%
Source: BITRE
travelBulletin SEPTEMBER 2020 5
STATE OF THE INDUSTRY
MAIN DOMESTIC ROUTES AUSTRALIAN CONSUMER AUSTRALIAN AIRPORTS
Top 10 domestic SPEND ON TRAVEL: NEWS International passengers through Australia’s
city pairs, June 2020 CORP AUSTRALIA INDEX major international airports, June 2020
City pair Passengers Passengers % change City pair Passengers Passengers % of total % change
YE Jun 19 YE Jun 20 -83 -83 -78 -81 -76 -77 -80 -83 -83 -84 -84 YE Jun 19 YE Jun 20 20/19
0
(000) (000) Sydney 16,907,184 12,124,493 39.5 -28.3
Melbourne- Melbourne 11,349,566 8,152,173 26.5 -28.2
Sydney 9,196.2 6,602.7 -28.2
-20 Brisbane 6,247,822 4,704,653 15.3 -24.7
Brisbane-Sydney 4,814.3 3,533.2 -26.6 Perth 4,333,913 3,209,262 10.4 -26.0
Brisbane- Adelaide 1,061,511 836,765 2.7 -21.2
3,594.8 2,671.3 -25.7
Melbourne Gold Coast 967,813 690,791 2.2 -28.6
Gold Coast- -40
2,692.0 2,026.5 -24.7 Cairns 660,699 450,678 1.5 -31.8
Sydney
Adelaide- Avalon (a) 238,570 293,747 1.0 +23.1
2,506.8 1,847.6 -26.3 Darwin 235,299 183,458 0.6 -22.0
Melbourne
Melbourne-Perth -60 Canberra 86,890 57,349 0.2 -34.0
2,115.7 1,585.2 -25.1
Gold Coast- Sunshine Coast (b) 14,303 13,084 0.0 -8.5
2,083.4 1,561.2 -25.1
Melbourne Newcastle (c) 6,687 7,371 0.0 +10.2
Adelaide-Sydney 1,877.3 1,355.5 -27.8 -80
un
Port Hedland 8,683 6,410 0.0 -26.2
ul
un
29 J
Perth-Sydney
06 J
1,690.4 1,266.1 -25.1
ul
Norfolk Island (d) .. 1,878 0.0 ..
un
15 J
un
un
13 J
ul
ul
ug
ug
22 J
20 J
27 J
Hobart-Melbourne 1,661.3 1,221.3 -26.5
01 J
08 J
Townsville (e) 2.064 .. .. ..
03 A
10 A
ALL CITY PAIRS 60,981.8 45,241.8 -25.8 ALL AIRPORTS 42,121,004 30,732,112 100.0 -27.0
-100
Source: BITRE (a) Scheduled passenger services commenced Dec ‘18 (d) Scheduled services ceased May ‘17 and recommenced
(b) Seasonal services only Sep ‘19
Source: News Corp (c) Scheduled services (seasonal) recommenced Nov ‘18 (e) Scheduled services ceased Sep ‘18
Source: BITRE
“
suggestions, as to the news media in recent
future structure of ATAS times, Australia’s trade
and consumer protection. AFTA’s press has been nothing but
Goodness knows the response supportive of the industry.
industry needs to come Anyone doubting that
together and talk about was, in should look at the initiatives
these issues. effect, to of the past six months.
Yet AFTA’s response was, tell CATO But more than that, it
in effect, to tell CATO and its was the tacit suggestion
Chairman Dennis Bunnik to and its that only AFTA should be
shut up and let the big boys Chairman discussing such issues
handle things. Bunnik, who at a higher level that left
has done much to elevate
Dennis a sour taste. Everyone in
the voice of CATO and its Bunnik to the industry has the right
Steve Jones’ members, deserved better
than this brush off.
shut up to comment, debate, and
make suggestions. And to
Say AFTA’s irritation was partly
and let the
big boys
do it publicly. AFTA doesn’t
a result of the discussion have a monopoly on that.
I THOUGHT the dismissive paper being sent to the handle I have no doubt that
way AFTA treated the trade media who it clearly AFTA has lobbied hard for
things
”
Council of Australian Tour feels have no part to play in the industry, as it should
Operator’s recent discussion any debate. That is patently have done during these
paper was unbecoming of wrong. Among the roles of perilous times. And it
the agency body. It came a trade publication is, or continues to do so. But
across as condescending least should be, to facilitate to suppress conversation,
and contained an air of debate and provide a vehicle to suggest another
superiority that really rankled. for discussion. That, I trade body – one which
CATO drew up a paper imagine, is precisely why represents a large and
following consultation with Bunnik sent it to Travel Daily, critical part of the supply
members. It made which and others, in the first place. chain – that it should pipe
several, very reasonable Unlike the rabid consumer down, is just plain wrong.
6 travelBulletin SEPTEMBER 2020Have y o u g o t w h a t i t
takes to be a n A m a z i n g
T hail a n d S p e c i a l is t ?
Sign up to our new learning platform where you can
complete a series of modules to increase your destination
knowledge and take your Thailand skills from good to great.
You’ll go on an educational journey spanning all corners of
Thailand, picking up some great tips and hints on how and
what to sell.
Available now to Australian and New Zealand Travel Agents
with quizzes to test your knowledge and prizes up for grabs.
TO LEARN MORE AND TO REGISTER CLICK HERE
Ko Phi Phi Don, KrabiISSUES & TRENDS
FLIGHT CENTRE AFTA VIEW
JETTISONS Darren Rudd, Chief Executive Officer
Australian Federation of Travel Agents
BRANDS IT HAS been a very busy, but extremely
FLIGHT Centre made some major streamlining rewarding August. AFTA Chair, Tom Manwaring
decisions last month, opting to hibernate its Travel and myself had the opportunity to appear in front
Money Oz brand and retire its Infinity wholesale of the Senate Select Committee into COVID-19
business, as the shutdown of the travel sector on 20 August, where we argued a strong case
continues to erode the bottom line of agencies for the need for on-going tailored support for
across the country. Australia’s travel agents and covered a range of
When rationalising the decision to cut Infinity other key priorities for travel agents including the
Holidays, one of the largest travel wholesalers reality of the payment ecosystem and the critical
in Australia, Flight need for international travel to resume.
“ Centre Executive GM of Our grassroots campaign, where we bring
Australian Supply and travel agents together with their local MP,
If all we do is Product Greg Parker said continued throughout August and is delivering
for members. Just last week, Member for
reduce our costs the business was driven
Wentworth Dave Sharma raised the plight of
by a need to “right-size”
and bring back a its operations during the travel agents in Federal Parliament and we have
smaller version sharp downturn. continued to visit electorates, bringing together
AFTA travel agent members and their local MP.
of ourselves, “There’s been a clear
Also last month, AFTA launched an exciting
need to reimagine
we are clearly our future operating new Micro Credentials Program for the travel
not positioning models,” he said. industry. Through the program, a partnership
with Learning Vault, AFTA is allowing
ourselves for long- “If all we do is reduce businesses – and their staff – to learn new
our costs and bring back
term sustainable a smaller version of skills or cross-skill during this challenging time.
growth ourselves, we are clearly AFTA held a Board meeting on 28 August, and
”
not positioning ourselves it was highlighted that since the start of the
for long-term sustainable pandemic, AFTA had delivered more than 80
Greg Parker, Executive growth,” Parker added. webinars reaching 35,000 travel agent owners,
GM Australian Supply The call to suspend managers and their staff.
and Product, Flight Travel Money Oz was We recognise however, that, in addition to
Centre business support, members need assistance
made in light of ongoing
international border with the emotional and financial stresses that
closures, with Flight Centre flagging a resumption has been brought on by COVID-19. Because
once the restrictions are lifted. of this, at the end of August, AFTA launched a
Resilient Mind Program in partnership with Paul
Taylor and the Mind Body Brain Performance
Institute, a four-week challenge designed to
boost resilience. In a single day of launching the
program we had over 150 businesses and 500
ED
CLOSED CLOS individuals register take part. The challenge
runs from 7 September until 4 October and
we look forward to sharing the results with the
industry. If ever there is a time to improve the
way we each deal with the challenges that life
throws at us, and our ability to cope, it’s now.
8 travelBulletin SEPTEMBER 2020VIRGIN CREDITOR’S REPORT
REVEALS PAYOUTS
UNSECURED creditors of Virgin had continued to grow through amid a significant downsizing of
Australia will receive between that period, “it was not profitable the workforce. Those who leave will
9c and 13c in the dollar if the growth,” with Virgin unable to get a 100% payout, while those
proposed Deed of Company derive sustainable profits from its who remain in the business will
Administration (DOCA) sale of strategic shift from a budget carrier be paid “in the normal course of
the carrier to Bain Capital is to a full service airline. business”.
approved at a creditors’ meeting In that state, the impact of The report also discussed
early this month. The details of coronavirus dealt a hammer blow to the alternative recapitalisation
the payout were revealed in the the business, particularly in March proposal from a group of
highly anticipated formal Report when overall capacity was reduced bondholders, backed by five
to Creditors from administrators to less than 10% of normal levels. former Virgin Blue executives
Deloitte Financial Advisory which “Such a reduction in business including DJ’s Head of Public
was finally released on 25 August. was not sustainable to service Affairs, Heather Jeffery and the
The report summarised the debts the Virgin Group’s costs and debt airline’s co-founder Rob Sherrard.
owed by the carrier, including load,” the administrators noted. “Although received after the
$1.93 billion to about 6,500 The proposed DOCA will see deadline for interested parties
bondholders, 9,022 employees employees of Virgin Australia to submit a binding offer, we
with entitlements worth $129 receive their full entitlements, even considered this proposal,” the
“
million, 63 landlords owed $201 administrators confirmed. “The
million and $237 million owed proposal was highly conditional
to 1,437 general creditors – and contained no evidence of
including travelBulletin. The proposed DOCA committed funding to enable a
The report makes fascinating will see employees transaction to be completed; in
reading as it particularly charts those circumstances we were
the financial decline of Virgin
of Virgin Australia unable to take this proposal
Australia. While COVID-19 put receive their full forward given the lack of certainty
the final nail in the coffin of the entitlements, even and the level of conditionality,”
carrier, the administrators noted they added. The alternative
that the airline had been weakened
amid a significant proposal was withdrawn on 21
from “cumulative losses incurred downsizing of the August after a Federal Court
almost year-on-year from 2009 to workforce attempt to force creditors to
”
2020,” amounting to about $2.2 consider it at this month’s
billion. While the airline’s revenue meeting failed.
travelBulletin SEPTEMBER 2020 9ISSUES & TRENDS
DARREN RUDD SEEKS SUPPORT
AFTA CEO Darren Rudd’s for AFTA itself so it can the AFTA website, with the
program to engage with the undertake a formal financial organisation urging industry-
grassroots of the industry will assessment of the future wide support. “The more the
step up this month as the viability of outlets – either on merrier, the more impact it
Federation pushes for a $125 how they can continue to invest will have,” the AFTA CEO said.
million package of support in to remain in business after the And as well as the funding
the upcoming Federal Budget. pandemic, or whether it is better package, the messaging also
A formal submission has been to make a “graceful exit”. reinforces to government the
lodged, seeking a combination The budget will be announced enormous impact that the
of business support grants in early October, and with ongoing border closures are
and Commonwealth-backed its submission finalised, the having on the industry.
loans to help the travel industry Federation will now ramp up
“
ride out the coronacrisis, with the pressure by a widespread
Rudd telling travelBulletin the activation of the industry. The
package seeks funding on top political push will see AFTA We are working
of economy-wide measures members, suppliers and anyone
like JobKeeper. else in the travel sector provided to make sure
AFTA is seeking a one off with resources and advice on Government
payment of up to $100,000 how to engage with their local
(based on 2019 TTV) for Federal Member of Parliament.
appreciates the
agencies to help with a range “We’ll be sending out a script impact that these
of costs, in recognition of the and documents, advising how to ongoing closures have
unique position the industry constructively set up a meeting
has been placed in by the with local members, a profile on our members,
government’s ongoing border on the metrics of the travel the travel sector,
closures. But the submission agent sector and the work they suppliers and the
also embraces the grim reality do, and what’s in our budget
community in general
”
that some industry businesses submission,” Rudd said.
will not survive, with $5,000 in The documentation has now
funding per agency requested also been made available via
Darren Rudd, AFTA CEO
“We are working to make
sure Government appreciates
the impact that these ongoing
closures have on our members,
the travel sector, suppliers and
the community in general,”
Rudd said.
With many sectors of the
economy seeking COVID-19
funding, there’s no certainty that
the plan will succeed, he noted.
“But this strategy will give us
the best chance we can have of
getting the dollars we need to
get through this.”
10 travelBulletin SEPTEMBER 2020AAPA URGES GLOBAL
COOPERATION
THE preoccupation with community transmission of
COVID-19 by governments across the world is proving an
irrational major impediment to the recommencement of
aviation, according to Subas Menon, who, with exquisite
timing, became Director-General of the Association of
Asia Pacific Airlines (AAPA) in March this year. Menon,
well known in Australia as the former Singapore Airlines
Regional Vice President South West Pacific, told
travelBulletin he believes it is vital that the world learns
to adapt to the “new normal” of COVID-19 and “re-create
an aviation network by applying science to mitigate
identifiable risks to travellers and crew”.
Noting the massive impact that opening up flights
will have on revitalising battered economies, Menon
said aviation was only likely to resume in earnest when
governments act in concert “to apply measures that are
safe but practical, to facilitate, rather than deter travel.
The current patchwork of blanket containment measures
are only serving to suppress aviation demand,” he said.
Safety is and
will always be
our top priority.
Learn more about what
we’re doing to keep you
safe while flying at
united.com/cleanplus
travelBulletin SEPTEMBER 2020 11M E S CE NE
· DO NOT C
RO
COVER
SORRY
SEEMS TO BE THE
HARDEST WORD O
In mid-March this year Princess Cruises’ Ruby Princess docked in
Sydney Harbour and its 2,700 guests were allowed to disembark
despite what was later found to be a number of COVID-19 cases
on board. The incident has led to several official inquiries, the
demonisation of the cruise industry and a relentless night-after-
night series of negative mainstream media reports about the
horrors of cruising. Bruce Piper traces how it all went so wrong.
L
AST month the NSW Government very least will be severely curtailed.
unveiled the final report from its Special In the early days of this crisis, there appeared
Commission of Inquiry into the incident, to be little doubt in the minds of officials at all
finding “serious mistakes” were levels that cruise operators were to blame for
made by its own Health Department. the outbreak. Government was understandably
Although State Premier Gladys Berejiklian has scrambling to deal with a rapidly escalating global
apologised unreservedly to those who contracted crisis, and the identification of the Ruby Princess
coronavirus as a result of the spread from the as a possible infection epicentre perhaps
ship, no such apology has been forthcoming to provided a welcome focus for officials to point
the cruise sector from anyone involved with the the media towards in terms of assigning blame.
“sorry episode,” as Commissioner Bret Walker The fact that cruise companies are foreign-
described it. And such is the opprobrium around owned, despite their longstanding commitment
cruising as a result of the various investigations to the Australasian market, also helped feed
and sensational coverage, almost all of the major the paranoia and xenophobia, meaning when
cruise companies have recently further deferred the ships were ordered out of local waters
their return to local waters, and many in the the community felt just a little bit safer – and
sector are coming to the grim realisation that a reassured that the Government and the police
2020/21 summer season is unlikely – or at the were doing their job to protect the public.
12 travelBulletin SEPTEMBER 2020O S S · C RI M
E S CE N E · D
O NOT CROS
S · CR IM E S C
ENE · DO NOT
C RO SS · CRIM
E SCE N
OOPS!
travelBulletin SEPTEMBER 2020 13· C RI M E S C
ENE · DO
COVER
workers assisting passengers at
Sydney’s Overseas Passenger
Unfortunately the infection rates Terminal on the morning of 19
of those who were aboard the March 2020.
ship are unclear, because many
passengers who later reported THE TIMELINE OF A
COVID-like symptoms were TRAGEDY
unable to be tested – particularly
a significant number who had THE report from the Commission
returned home to the UK where, at of Inquiry details the escalation
the time, the Government had not of the COVID-19 pandemic. After
implemented widespread testing half a year of lockdowns, border
regimes. However it’s estimated closures and other restrictions
that a third of the passengers it’s almost surreal to think that
on the cruise, or about 800, did this coronavirus was only formally
contract COVID-19. While the identified in early January after
COVID-19 related deaths of 28 a spate of unusual infections
Ruby Princess passengers – 20 in in China. By 20 January almost
Australia and eight in the USA – 300 confirmed cases had been
are absolutely tragic, the massive reported to the World Health
reaction to the spread of the 2,700 Organization (WHO) in China (278
guests across the country and cases), Thailand (2 cases), Japan
the world after disembarking does (1 case) and South Korea (1 case).
seem to be somewhat overblown, Five days later Australia confirmed
particularly since they resulted in a its first case, identified as a man
total of just 62 cases of secondary who had flown from Guangdong
and tertiary transmission. Those to Melbourne. In response the
62 people included multiple cases Australian Government raised its
of COVID-19 reported by transport travel advisory for China’s Wuhan
27 Mar
15 Mar Stuart Allison
08 Mar Scott 23 Mar confirms
Ruby Morrison NSW Health Ruby 05 Apr 15 Apr
Princess orders all tightens Princess was Mick Fuller Gladys
docks in int’l cruise disembarkation assessed announces Berejiklian 24 Apr
Sydney then ships to policy, as low risk criminal announces Ruby
departs for cease tells Ruby and complied investigation special Princess
next cruise cruising for passengers to with all into Carnival Commission departs Port
to NZ 30 days self isolate requirements Australia of Enquiry Kembla
14 Mar 19 Mar 25 Mar 28 Mar 09 Apr 16 Apr
14-day Ruby Princess 8th Greg Hunt NSW Police Mick Fuller orders
isolation returns from passenger bans int’l “raid” Ruby Ruby Princess to
requirement NZ and dies in cruise Princess in depart Australian
implemented passengers Sydney ships until Port Kembla waters
for anyone disembark RPA 15 Jun
returning after
from clearance
overseas from
authorities
14 travelBulletin SEPTEMBER 2020O NOT CROS
S · CR IM E S C
ENE · DO NOT
C RO SS · CRIM
E SCE NE · DO N
OT CROSS · CR
and Hubei Province to “Level 4
– do not travel”. At the time we also the centre of another crisis off
all still thought it was a far-off the coast of California, where its
problem, and were bemused at Grand Princess was on a roundtrip
the seemingly extreme measures voyage from San Francisco.
being undertaken in Wuhan to Tedros Adhanom, the Director-
control the spread. How little General of the WHO, sounded
we knew. further alarms on 11 March
Just a few days later the WHO 2020 – just over a week before
convened a further update, the controversial Ruby Princess
announcing more than 7,700 disembarkation – after official
cases in China and 83 patients in figures noted that COVID-19 cases
18 other countries and declaring had escalated 13-fold over the
the outbreak as a Public Health previous fortnight. By that stage
Emergency of International there were more than 118,000
Concern. On 1 February the reported infections across 114
Smartraveller advisory level was countries, with 4,291 deaths
raised to “Do not Travel” for the recorded. “In the days and weeks
Top: Ruby Princess left whole of China, and Prime Minister ahead, we expect to see the
Australia on a cruise Scott Morrison imposed a ban number of cases, the number
to New Zealand seven on arrivals of anyone who had of deaths, and the number of
days before Scott been in mainland China during affected countries climb even
Morrison’s 30-day ban the previous 14 days. That same higher,” he warned. On 13 March
on international cruise day, the first case of COVID-19 2020 the newly convened National
ships ©Princess connected with the Diamond Cabinet announced the first of
Cruises ever-stricter measures, including
Princess, cruising in Japanese
Left: Initially COVID- waters, was confirmed, leading no gatherings of more than 500
19’s spread was to the ship being quarantined in people. That was followed on 15
limited to China Yokohama. Princess Cruises was March by a requirement for 14-day
18 May
News Corp
Australia issues
apology over critical
article describing 14 Aug
the enquiry as NSW Commission
“state-sponsored of Inquiry report
bastardry” released
08 May 21 May 28 Jul 17 Aug 17 Sep
Federal inquiry Greg Hunt Shine Lawyers Gladys Berejiklian Biosecurity
hears evidence reissues announces apologises order due
confirming biosecurity class action unreservedly to to expire
ship’s health log order banning against Carnival anyone affected
was regularly cruise ships in Corporation by community
updated Australian waters and Princess transmission from
Cruises Ruby Princess
travelBulletin SEPTEMBER 2020 15COVER
E · D O N OT C ROS
OT C R O S S· CRIME SCEN
D O N
C R O S S · C R IME SCENE ·
NE · DO NOT self-isolation requirement on all
international arrivals, as well as
Top: From the
beginning, Carnival a complete ban on international
Australia maintained cruise ships entering local waters.
Ruby Princess’ However this ban had exceptions
captain, ship doctor, for ships already en route to
crew and shoreside Australia – including the Ruby
team had all followed Princess which was undertaking a
the authorities’
trans-Tasman voyage.
requirements
©Princess Cruises The Ruby Princess arrived back
in Sydney on 19 March after
Bottom: Ruby Princess its itinerary was amended in
departs from Port
response to the new restrictions,
Kembla, where
was assessed as being “low risk”
she was subject
to a police ‘raid’ by NSW Health, and therefore
for evidence in the passengers were allowed to
criminal investigation disembark and return home or
and was docked until board onward flights. And then at
ordered to leave 9pm that same day Australia’s
Australian waters borders were closed to non-citizens
©James D Morgan/ and non-residents. Passengers
Getty Images were initially told their self-isolation
period could commence from the
final port they had visited in New
Zealand, but later this advice was
amended to require 14 days of
quarantine from disembarkation –
but in the final destination meaning
they could travel home.
It took four more days for
authorities in NSW to further
tighten the policy, with Premier
Gladys Berejiklian and Health
Minister Brad Hazzard ordering
that all cruise ships should be
held in port with disembarkation
denied until all passengers with
respiratory issues had been tested
for COVID-19. On 23 March NSW
Health also confirmed it had been
in contact with all Ruby Princess
passengers to advise of the 14-day
self-isolation requirement. At
the same time some very unwell
passengers were being treated
in hospital, with eight deaths
recorded by 25 March.
Amid the maelstrom, perhaps
taking the approach of “out of
sight is out of mind,” Federal
Health Minister Greg Hunt issued
16 travelBulletin SEPTEMBER 2020E S C E N E·D O
CROSS · C R I M
S C E N E · DO NOT
SS · C R I M E
his first formal cruising Biosecurity
Order on 28 March which banned Fuller initiated a criminal
all international cruise ships from investigation into the incident,
Australian waters until 15 June urging the public to make
– an order which has so far been submissions via the Crime absolute commitment to that,”
extended until the middle of this Stoppers hotline. Fuller confirmed she promised. By this time Ruby
month and no clarity at all yet as that more than 200 people had Princess had relocated to Port
to when vessels will be permitted made reports offering information, Kembla, with compassion at least
to return. adding “that could take two months shown to the crew on board, some
alone chasing up those leads”. of whom were also showing COVID-
CRUISING IN THE Fortunately there appeared to be 19 symptoms, in a turnaround
plenty of manpower to undertake from the initial insistence that she
CROSSHAIRS sail off into the sunset as soon as
the probe, with Fuller announcing
THE escalating crisis was the that a team of no less than 30 possible despite having illness on
subject of nightly updates on detectives from the State Crime, board. While the ship was in Port
the TV news, with media also Counter Terrorism and Special Kembla, officers from the police
ultimately producing several Tactics and Marine Area Commands Strike Force visited the ship to
sensational exposés poring had been seconded to the specially speak to the captain and crew on
over the grisly details. Amid all constituted “Strike Force Bast”. 9 April – an encounter described
of this Princess Cruises and They would also be assisted by as a “raid to seize evidence” by
its parent company Carnival intelligence analysts and other Nine Publishing. Fuller mysteriously
Australia strenuously tried to specialist officers, he promised. noted that “ships have a black box
mount a defence. On 27 March And Berejiklian backed this very similar to that of international
Princess regional chief Stuart up with her assurance that if planes, and that and other
Allison issued a video update police found no grounds to lay evidence has been seized for
confirming that Ruby Princess criminal charges she would further investigation”.
had been assessed as low risk, launch her own inquiry. “I give my After it emerged that police
and had complied with all official and coronial investigations could
“
requirements. That was backed take up to a year to finalise,
up a week or so later in an update Berejiklian formally established
on 2 April from Carnival Australia her Commission of Inquiry on 15
President Sture Myrmell, who However [the cruise April, with Bret Walker SC ordered
insisted that the ship’s crew and line’s] protestations to report back to the government
in three to four months. “We will
shoreside team had “followed to at the time were like leave no stone unturned until we
the letter” all of the clearance
processes in place at the time. a candle in the wind find out exactly what happened,”
However their protestations of overwhelming she said. “Discussions with the
at the time were like a candle Police Commissioner and the
opposition and State Coroner have made clear to
in the wind of overwhelming
opposition and accusations, with accusations, with NSW me their expected investigation
NSW Police Commissioner Mick Police Commissioner timelines, and I have decided
Fuller particularly damning. Just that the quickest path to answers
two days after the ship docked he
Mick Fuller particularly is through a powerful and
described the escalating death damning. Just two days independent inquiry.”
toll as “suspicious”. Cruise ships after the ship docked The scrutiny continued in the
intending to dock in NSW had following days, including an
a “high responsibility” to report he described the encounter in the Carnival Australia
any COVID-19 symptoms and escalating death toll as car park in Sydney where the
company’s chief Sture Myrmell
alert health authorities about any ‘suspicious’
”
concerns. “Did they, or did they was bailed up by journalists from
not, do that?” he asked. Channel 7 as he arrived at work.
travelBulletin SEPTEMBER 2020 17COVER
NSW Premier Gladys Berejiklian and NSW
Police Commissioner Mick Fuller both
announced separate investigations into Ruby
Princess ©Dean Lewins/AAP Image
Myrmell managed to retain his
composure during aggressive
questioning on camera as he
was pursued to the elevator
and was repeatedly asked “Will
you apologise to the families of
the victims?”
NOT WITH A BANG, BUT
A WHIMPER
THE Special Commission held a
series of public hearings, with
Commissioner Walker and his
And then one day shy of the escalating crisis, where procedures
counsel soliciting evidence from
four month deadline, Walker and guidelines were changing on
the public as well as the cruise
handed his 322-page report to a daily basis, the panel of NSW
company, state and federal
the Government, with Berejiklian Health experts which approved the
officials. Despite assurances of
making it public via Twitter late ship’s disembarkation made the
full cooperation from the Prime
on a Friday afternoon in August. wrong decision.
Minister, the Federal Government
And lo and behold, as many in “In light of all the information
launched legal action to stop
the cruise and travel industry had the Expert Panel had, the
the Commission being able to
believed right from the start, the decision to assess the risk as
compel testimony from some of
whole thing was a monumental ‘low risk’ – meaning, in effect,
its witnesses, and the hearings
waste of time. The overall ‘do nothing’ – is as inexplicable
once again provided a nightly
conclusion was that amid an as it is unjustifiable,” the report
opportunity for the cruise industry
found. “It was a serious mistake,”
to be vilified and demonised by
“
Walker noted – but also pointed
tabloid TV journalists. Evidence
that perhaps like everyone else
probed including the timing of
ship’s logs, how medical cases And lo and behold, involved, sometimes humans do
unfortunately make wrong
on board were reported to official as many in the decisions. “Those physicians
government systems, claims that
perhaps the ship’s doctor had cruise and travel relied on the best science, not
pseudoscience or matters of
been less than forthcoming about industry had
political convenience,” Walker wrote.
COVID-19 symptoms of those on believed right “They were diligent and properly
board, a shortage of swabs on the
ship, and tearful regret about the from the start, the organised. There are no ‘systemic’
failures to address. Put simply,
procedures undertaken by NSW whole thing was despite the best efforts of all, some
Health which ultimately assessed a monumental serious mistakes were made”.
the ship as “low risk” and allowed
waste of time It’s now cold comfort given
”
the passengers to disembark.
that we are nearly six months
into this crisis with no sign of a
E SCENE · DO NOT CROSS ·
CRIME SCENE · DO NOT CR
OSS · CRIME SCENE · DO N
OT
18 travelBulletin SEPTEMBER 2020resumption of the cruise industry,
but the report vindicated all those
claims made by Princess and
“
However the
However the release of the NSW
Special Commissioner’s report
should at least pave the way for
Carnival in the early days. As release of the some progress in relation to a
Myrmell had insisted, the Princess return to cruising. There has been
on-board and shoreside teams
NSW Special a widespread perception that
followed the stipulated procedures Commissioner’s it was impossible to make any
to the letter. Princess Cruises report should at progress until Walker released
Group President Jan Swartz his findings – and now that they
noted that the Commission’s least pave the way are public, and have found that
report “confirms that none of our for some progress Princess adhered to the highest
people – the captain, the ship’s in relation to a standards, surely it will be possible
doctor, or members of our shore to move forward.
return to cruising
”
side port agency team – misled The 17 September deadline
public authorities involved in for the Government’s existing
Ruby Princess being permitted to Biosecurity Order banning cruise
disembark guests on 19 March. investigation. “We don’t just look ships from Australian waters is
This finding is of great importance at the recommendations of the fast approaching. Let’s hope
to us because it goes to the special inquiry, but we look at the that with the conclusions of the
integrity of our people. In our more evidence,” he told Nine Radio after report, rational heads prevail in
than 20 years in Australia, we the report was released. “That Government and we can look
have always sought to cooperate will help police make a difficult forward to the restart of the cruise
honestly and professionally with decision, if need be, for anyone industry which supports so many
officials in accordance with the that may have shown a higher level livelihoods in Australia.
regulatory environment.” of negligence that contributed to As for any sign of an apology
So where to now? Despite the the death of those nine people to the now-vindicated industry
report’s exhaustive examination in NSW,” Fuller added. The NSW shattered by the incident – from
of the issues and its final Coroner is also conducting its NSW Premier Gladys Berejikilan,
conclusion that has exonerated normal processes in relation to the Health Minister Brad Hazzard, NSW
the cruise industry, Police chief deaths and will eventually release Health or mainstream media –
Mick Fuller is persisting with his a separate report in due course. don’t hold your breath.
The 17 September deadline for the expiry of
the Biosecurity Order banning cruise ships from
Australian waters is approaching, with no word
so far of what will happen next.
T CROSS · CRIME SCENE ·
DO NOT CROSS · CRIME SC
ENE · DO NOT CROSS · CRIM
travelBulletin SEPTEMBER 2020 19
ECRUISE
MSC REBOOTS OPERATIONS
MSC Cruises last month welcomed back its first Italians who have visited Greece. All other cruises,
guests on MSC Grandiosa, with the cruise line’s such as United States departures, have been
flagship departing from Genoa for a seven-night cancelled through to November.
cruise through the western Mediterranean. MSC Managing Director Australasia Alessandro
MSC’s comprehensive health and safety Guerreri said the cruise line had set up a cross-
protocols have been implemented for all guests and functional taskforce comprised of in-house experts
crew members, with screening procedures including to aid with the restart. “We engaged Aspen Medical
a temperature check, medical review and COVID-19 to assist with the development, we also formed a
swab test for every guest prior to boarding. blue-ribbon COVID expert group made up of highly
MSC Grandiosa was meant to be followed by MSC qualified medical experts whose objective was to
Magnifica in the eastern Mediterranean in late assist to review at a second level of control and
August, but the restart has been pushed out to to review all our initiatives to make sure they are
the end of this month, due to soft demand caused effective and informed by the best available science
by the introduction of new testing measures for and health practices,” Guerreri said.
MSC Grandiosa
VIKING CANCELS 2020 VOYAGES, OPENS 2021-23
VIKING Chief Executive Officer optimism for cruising in 2021, with which means we do not have to rush
Torstein Hagen last month the year showing clear signs of the decision to return to service.”
announced the decision to extend improvement thus far. However the line opened up
the cruise line’s global pause until However, Hagen noted it 2021-2023 cruises for bookings,
the end of the year. was “prudent to wait until the with voyages in Egypt, Europe and
Affected guests can receive a prevalence of the virus in the USA Southeast Asia all on sale.
fully transferrable 125% future has been reduced and our guests “In time we’ll be travelling again..
cruise credit, with any voucher feel more secure to travel.” in the meantime we want to help
used to book a cancelled cruise He also said Viking was well- your clients make the most of their
reinstated with two-year validity. positioned to weather the current precious time, by planning their
It was not all doom and gloom for industry conditions, adding, “we future adventures the Viking way,”
Viking, with Hagen also announcing are a private, closely held company said Viking MD ANZ Michelle Black.
20 travelBulletin SEPTEMBER 2020Nurture
your return.
Your Your Your
bookings deals are customers
are secure. amazing. love you.
Expedia TAAP,
we’ve got your back.
ENJOY TODAY
www.expedia.com.au/taapCRUISE CRUISE & MARITIME VOYAGES UNLIKELY TO PAY CREDITORS DUFF & Phelps, the administrator financing deal over the line in time “It wasn’t until [the financing for Cruise & Maritime Voyages to save this wonderful business,” campaign] was ultimately (CMV) Australia, has found the Verhounig said. unsuccessful and that certain COVID-19 pandemic and demand CMV Australia now owes more entities within the CMV Group were for refunds from customers as than $138 million to 53 creditors, placed into Administration that the “key reasons for the company’s with more than $131 million of its Company’s ability to continue to difficulties”, with a payout to debt relating to secured creditor meet its debts as and when they creditors unlikely. claims for the Group, as well as a fell due came into question,” Duff The administrator recommended related-party creditor owing $5.7 & Phelps said. in last week’s second report to million to sister company South While British consumers creditors CMV Australia be wound Quay Travel & Leisure, which impacted by Cruise & Maritime up, as the cruise line has a cost provided ongoing funding to CMV Voyages’ closure have been base which cannot be reduced to Australia. protected by the various UK Air a “mothball state” until the end Local trade creditors are owed Travel Organiser’s Licensing of the pandemic, as well as large $470,000, staff are due $282,000 and ABTA schemes, no such fixed overheads. in entitlements, and CMV Australia protection has been available in CMV Australia ceased trading Managing Director Dean Brazier is Australia, with travel agents who last month when its British parent listed as being owed $55,000. were not part of the Australian company CMV Group was unable Duff & Phelps found the cruise Federation of Travel Agents’ to attract additional funding, line had not been trading while chargeback scheme believed to be with CMV Chief Executive Officer insolvent, but had been operating heavily impacted. Christian Verhounig saying “the at a loss since 2014, losing Cruise & Maritime Voyages CMV journey has been tragically $121,000 in the most recent also planned to receive Pacific cut short by this unprecedented fiscal year. Dawn and Pacific Aria for its 2021 global pandemic.” season in a purchase The cruise line had from P&O Cruises sold almost 90% of its Australia, which were 2020 capacity before the planned to be renamed pandemic, and also had Amy Johnson and Ida strong forward bookings Pfeiffer, but the future for 2021 but despite this of these two ships is “we just could not get the now unknown. 22 travelBulletin SEPTEMBER 2020
You can also read
