FRED. OLSEN CRUISE LINES PUBLISHES PRICING GUIDELINES

In setting out pricing and discounting guidelines, Fred. Olsen Cruise Lines has said, its aim is to create a level playing field where the price of a Fred. Olsen cruise is the same wherever it is purchased. In order to achieve this, the line  is requesting that all agents sell at the price set by FOCL from the 2013 Pre-Launch brochure onwards. This also includes the Braemar 2013 Canaries Fly Cruises.

Agents may not pass on any of the commission earned to the customer in the form of discount; or complimentary benefit which has not been agreed with the company in advance. In the event that an agent discounts the price of a cruise using its commission, ‘it risks,’ according to the guidelines, ‘jeopardising its trade agreement with us and this may result in a reduction to your commission on future sales.’

All agent specific promotional deals will be withdrawn for Braemar Canary Island fly cruise holidays and Summer 2013 cruises onwards. Fred. Olsen will yield manage the prices and the same price will be available to all agents whether the price is reduced or increased. Therefore the only time customers can benefit from a reduced price is if they are an Oceans Club member.

For travel agents who feature a unique proposition for their customers that is not a form of cash discount, the line ‘can agree that agent commission can be used to fund this proposition. However the actual value must be vague and not exceed 2.5% of the booking value. This might include a contribution towards transport to the port, pre-cruise hotel, case of wine, hamper, loyalty award/reward, no credit card fees etc..’

Any such promotion must be agreed by Fred. Olsen and operated within a tactical period. Benefits that have an obvious cash value such as on board spend credit will not be agreed to. In the event of multiple benefits being promoted, the collective value of the benefits must not exceed 2.5% of the booking value. This includes loyalty programmes, which typically operate on a 1% margin. Complimentary benefits are not to be promoted with the 2013 Pre-Launch Offers prices as they already represent excellent value with a discount and booking deadline.

Braemar 2013 Canaries Fly Cruises

Complimentary benefits may be promoted with the Braemar 2013 Canaries Fly Cruises M1301FC to M1310FC. However Fred. Olsen has specified that agents may not pass on any of the commission earned to the customer in the form of discount.

MTB 16/03/2012

SCOTTISH AIRPORTS LOBBY CHANCELLOR ON APD

Chancellor urged to give Scottish airports fighting chance against European rivals -

leading airports warn of impact of spiralling APD levels.

Scotland’s main airports have urged Chancellor George Osborne to rethink a planned hike in Air Passenger Duty (APD) “to give our airlines and airports a fighting chance” to compete against European rivals.

The managing directors of Aberdeen, Edinburgh and Glasgow airports – which collectively handle more than 19 million passengers – have warned that Scotland and the UK are losing out to Europe because of spiraling APD levels, now the highest in the world.

The warning comes ahead of a planned 10% increase in APD in this month’s Budget.

In a joint letter to the Chancellor, MDs Derek Provan (Aberdeen), Jim O’Sullivan (Edinburgh) and Amanda McMillan (Glasgow) write:

“APD levels in the UK are the highest in the world, and rising. With the industry in Britain bracing itself for further rises to this already disproportionate tax, our competitors in Europe – where many Governments have reduced or removed passenger duty entirely – continue to enjoy a competitive edge over UK airports.

“In Scotland, we have particular concerns about our future ability to attract new airlines in what is an intensely competitive global market. There is a risk that airlines looking to serve new markets will choose other European countries at the expense of Scotland. This in turn will have a significant impact on employment, business competitiveness and inbound tourism.”

The letter cites a report commissioned by BAA in 2011 which warned that further increases in APD could cost Scotland’s airports around 1.2 million passengers over three years, with a corresponding financial cost of £77 million in lost tourism revenue.

The MDs highlight their hard won success in growing Scotland’s international route network, including the recent news that Emirates is to operate double daily flights from Glasgow to Dubai, the launch of a new flagship service from Aberdeen to Frankfurt, and the continued expansion of Edinburgh’s European route network.

However, they warn that in discussions with airlines “APD is regularly cited as a barrier to growth and several airlines have made it clear to us that APD levels are simply too high to enable route development from Scotland to be commercially viable.”

They warn too that a shrinking international network will damage exports and do little to promote trade and commerce between Scotland and the rest of the world.

They also highlight the fact that UK airlines are now part of the EU Emissions Trading Scheme, which came into effect in January.

“The planned increase in APD has the effect of taxing UK air passengers twice,” they write. “With the emissions trading now an established reality, and the airline industry committed to further steps to reduce its environmental impact, there can be no justification for any further increase in APD. Aviation should not be taxed twice.”

The letter also welcomes the UK Government’s decision to reduce APD levels in Northern Ireland, describing the move as “recognition that APD presents a significant barrier to growth and a positive indication that the Government is prepared to support the industry.”

However, they warn the decision does not go far enough and again pressed the Chancellor to rethink the Government’s policy on APD “to give our airlines and airports a fighting chance to compete effectively with their European counterparts.”

MTB 16/03/2012

NCL INTRODUCES NEW ONLINE BOOKING ENGINE

	NCL's new upgraded Booking Engine, Norwegians Book Here, will be coming very soon, bringing agents increased flexibility and functionality in managing individual and group reservations - and much more. With the new interface they will be able to search, book, and manage bookings in a new and easy way. Enhancements - aimed at delivering a faster, easier, more intuitive tool for shopping, booking and servicing Norwegian Cruise Line customers - include : A streamlined, easy booking process from start to finish The ability to select from all available staterooms, search for specific features or search for a specific stateroom of choice See lead in pricing for a range of sailings Quick search function on every page Prebook shorex, dining and entertainment Pay via credit card Search for Latitudes Rewards members Select multiple staterooms See included On Board Spending Money Add paid amenities and apply payment. In addition to these booking enhancements, the cruise line has introduced new methods for servicing existing bookings : Ability to request confirmations Make payment on existing bookings Manage bookings – add and delete guests or modify their travel choices. NCL will shortly be sharing new online training tutorials with agents, who will be able to sign up for Webinars to learn more. Agents will keep existing usernames and passwords, so they will quickly be able to take advantage of this new functionality. More information will follow, according to the company. MTB 09/03/2012

FLYBE CREATES REGIONAL NETWORK HUB IN MANCHESTER

Manchester Airport is to benefit from an additional 86 regional point to point connections created by Flybe, Europe’s largest regional airline and the UK’s Number One Domestic carrier, as it becomes the first ever independent carrier in the UK to create a regional network hub from where  passengers will have an additional weekday choice of 86 improved connections through Manchester International Airport.

This will benefit in particular passengers travelling to Aberdeen, Belfast City, Edinburgh, Exeter, Glasgow, Inverness and the Isle of Man as well as those flying with its franchise partner, Loganair from Norwich.  Flights are available for booking now for travel from March 26^th with one way fares from £29.99 including taxes and charges.

In committing to better serve its passengers with improved connectivity, Flybe has worked hard with Manchester Airport to make these new services possible and reduce minimum connecting times to as little as 35 minutes. By streamlining connectivity through its Manchester hub , the airline believes the added choice of conveniently connecting domestic flights will prove of special benefit to those travelling on business, those wanting an affordable choice of multiple day returns and, just as importantly, creating additional opportunities for regional communities to access the many flight connections to the rest of the world offered from Manchester Airport.

  

Simon Lilley, Flybe’s Director of Marketing, says: “Flybe has always looked at innovative ways to improve its services and with 5% of our passengers already taking advantage of the many connections we have been offering for several years, it made perfect sense to further optimise this obvious need. As Europe’s largest regional airline serving 36 UK departure points, it made sense to ‘join’ more of them up and do it over Manchester, one of our largest bases.  Manchester Airport immediately saw the potential and have worked hard with us to ensure that it could accommodate our re-adjusted schedule that now gives our passengers the added choice of over 80 new domestic connections. We also expect to see an increasing number of regional passengers choose to connect to the many international flights offered at Manchester rather than travelling through Heathrow.” 

ROUTE	# of previous frequencies	New # of frequencies
Aberdeen - Exeter	1	2
Aberdeen – Isle of Man	0	2
Aberdeen - Norwich	0	2
Belfast City - Exeter	1	4
Belfast City - Inverness	1	3
Belfast City - Norwich	0	3
Edinburgh - Exeter	2	4
Edinburgh – Isle of Man	1	4
Exeter - Glasgow	1	4
Exeter - Inverness	0	2
Exeter – Isle of Man	0	3
Exeter - Manchester	2	3
Exeter - Norwich	0	4
Glasgow – Isle of Man	1	4
Glasgow - Norwich	0	3
Inverness – Isle of Man	0	2
Inverness - Norwich	0	2
Isle of Man - Norwich	0	3
`

Commenting on the deal, Ken O’Toole, Manchester Airport Group's Chief Commercial Officer, said: "We welcome Flybe’s establishment of a hub operation at Manchester Airport. Flybe’s selection of Manchester is a testament to the class-leading facilities available and confirms our position as the leading regional airport in the UK. We look forward to the increased connectivity and passenger volumes this announcement will bring."

Flybe’s travel trade partners are equally positive about the move.  Brian Potter, MD of Clyde Travel Management: “With such a capacity shortage at Heathrow, Manchester is an obvious benefactor. These additional Flybe services should really help change people’s perceptions of where they can connect to via Manchester. Flybe now offers a wealth of options both through its added UK flights and because of its agreements with many of the long haul carriers to allow through booking of baggage and common baggage allowances to final destinations."….and from the Isle of Man, Online Regional Travel Group’s CEO Brian Kelly says: “In business it pays to make the right connection. Connecting to the regions with Flybe through Manchester gets our business and leisure travellers to the destination of their choice every time. Manchester makes a natural connecting hub from the Isle of Man and is of significant importance to our clients.”

*Further benefits over Flybe’s Winter 2011/12 schedule will also include 12 additional weekday services between Manchester and Aberdeen (4), Edinburgh (4), Exeter (2) and the Isle of Man (2).


MTB 09/03/2012 

Flybe RESPONDS TO UPCOMING APD INCREASE

Flybe. Field Sales Manager and SPAA Representative Dave Paterson has confirmed that the airline has responded to the upcoming increase in APD, 01 April 2012.

Flybe will not retrospectively charge passengers who already hold bookings - made before 01 December 2011 - for travel on or after 01 April 2012.

The airline's general policies can be found online - on its dedicated travel sector pages at www.flybe.com/trade.

MTB 01/03/2012

businesstaxis.com BECOMES GTMC PARTNER

The GTMC, the UK’s leading professional industry body representing travel management companies, has announced that Businesstaxis.com has become the latest GTMC partner.

Businesstaxis.com offers a range of executive level, meet and greet private transfer services, for individuals or group travel.

GTMC chief executive Anne Godfrey said: “We are pleased to welcome businesstaxis.com as a GTMC partner. Their business model is different from the traditional chauffeur drive and we look forward to their input and participation at the various GTMC activities and events, including the surface transport working party.”

Businesstaxis.com’s general manager Chris Oakes said: “It is the goal of Businesstaxis.com to establish its high quality standard service as the first choice for business travellers, making expensive peak-capped chauffeur services redundant in the modern business climate of value for money. BusinessTaxis.com also provides a valuable revenue stream for TMCs    -approximately 40% of business travel journeys involves a taxi journey.  To aid operational efficiencies and more transparent accounting we offer a centralised-billing system, including the ability to pre-pay fares, with a full reporting suite available.”

BusinessTaxis.com has a UK call centre, which will handle any pre or post enquiries from 

agents, as well as tailoring to a customer’s specific needs.

MTB 01/03/2012

VIRGIN ATLANTIC'S PAUL WAIT SPEAKS TO MEMBERS

Virgin Atlantic's General Manager-Sales Paul Wait gave a thoughtful and intriguing overview of aviation in the UK, past, present and future, as he delivered his Response - to the Toast To World Travel And Tourism proposed by SPAA President Kevin Thom at the Association's 82nd Annual Dinner.

The long-time American Express and Virgin Atlantic senior manager - who had worked for a significant period in Aberdeen for the global TMC - demonstrated his understanding of the Scottish character and resilience in his largely optimistic remarks - ranging across aviation taxation, environmental issues, oil costs and commercial threats, via the upcoming change of ownership of bmi, to the 'stellar' ambitions of Sir Richard Branson's Virgin Galactic.

A full report on Mr Wait's speech can be viewed in SPAA News on this website.

Matt Bates
24/02/2012