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Fri 29 Aug: 10 things you need to know today

We’ve done all the hard work so you don’t have to! Read on for the top 10 travel industry news stories of the day that we think you need to know.

We’ve done all the hard work so you don’t have to! Read on for the top 10 travel industry news stories of the day that we think you need to know.

1. Virgin posts loss, Velocity sold

Virgin Australia has sold 35% of its Velocity frequent flyer programme after posting a record statutory loss of $355.6 million, in what the airline’s CEO says was “one of them most difficult operating environments in the history of Australian aviation”.

The surprise sale of Velocity to private investment fund, Affinity Equity Partners, brings the value of the program to $960 million and increases the airline’s cash balance by $336 million. The program will remain under the Virgin Australia Group with a separate Velocity Frequent Flyer Board to lead the charge in its development.

Virgin CEO, John Borghetti said over the past four years the group has doubled membership to its FF program to 4.5 million and with the sale marking a “significant milestone as it validates the success of the Velocity Frequent Flyer business to date”. Read more

2. Mantra’s mantra is strong profits

The Mantra Group has announced its FY14 results, with total revenue at $454.7 million, up 5.7% year-on-year to achieve its Prospectus forecast. Mantra Group Chief Executive Officer Bob East said the result reflects improved occupancy levels and average room rates.

The Group reported its total assets stand at $516 million, net assets at $257 million and with its strong cash flow, it “is well placed to deliver shareholder value in FY2015.” CBD revenue delivered $236.2 million and EBITDAI of $42.9 while its Resorts brought in $177.3 million and EBITDAI of $22.6 million, both up from FY13. The Group plans to add 5 new hotels to its network, including the first Peppers property in Bali.

Mr East said that Mantra Group will continue to grow RevPAR and improve yield management by targeting higher yielding corporate accounts while optimising distribution channels by increasing the proportion of bookings via direct channels as well as increasing mobile capability, social media and website optimisation.

3. Virgin Business expands across Tasman, Pacific

Virgin Australia KarryOnVirgin Australia will introduce Business Class on all Trans-Tasman and Pacific Island routes from March 2015. Its Sydney-Auckland will be the first to launch, following a progressive roll out across 10 aircraft in the airline’s Boeing 737 fleet. Aside from refitting aircraft with the 2-2 Business Class seating configuration, it will introduce priority check-in and boarding.

This extension to Trans-Tasman and Pacific Island routes, including Virgin Samoa, will complete the airline’s premium service offering across its mainline domestic and international network.

“We remain committed to enhancing the customer experience and driving increased innovation through our products and services,”

Virgin Australia Chief Customer Officer Mark Hassell said.

This enhancement will complete our service on these important routes and marks another major milestone for our evolving product offering,”

“In fact, Virgin Australia’s latest research shows Australian travellers are more than twice as likely to recommend our Business Class product than that of our major competitor.”

Virgin Australia expects the progressive roll out of Business Class to be complete by April 2015. Business Class seats on Sydney to Auckland services are expected to go on sale before the end of year.

4. Holiday.com to be auctioned off

One of the world’s most premium domain names, holiday.com is expected to go under the hammer at World Travel Market (WTM) in London in November. The “holy grail” for travel industry businesses has been with its current owners, Breathe Luxury Limited, for the past 16 years.

“With many major travel companies battling to acquire Holiday.com over the years, in order to increase their market share, has failed… it is only now that the owners are at ease to part with it,” the company said.

“Here at Breathe Luxury we believe that Holiday.com has all the hallmarks to be the No.1 leading travel brand and dedicated online platform in serving holidaymakers worldwide. As the keyword ‘Holiday’ is so widely searched on major search engines that over 90% of online travel businesses are using ‘holiday’ as one of their top 5 keywords search term, to reach customers online”.

Revealing that Breathe Luxury has already received offers in the USD seven figures range, it “intends to give Holiday.com the best platform and stage it truly deserves, and where better, then the World Travel Market”.

According to Breathe Luxury, Holiday.com has “all the potential of being among the top 5 highest sold domains and it is clearly a world record breaker in the making”. Notably, Hotels.com sold for a US$11,000,000 and “Vacationrentals.com” sold for a staggering US$35,000,000.

5. Malaysia Airlines tempting passengers with seat sale

Malaysia Airlines has reported a bigger net loss in the three months ending June 30 to 307 million ringgit (A$104.2 million), compared with 176 Million ringgit reported for the same period last year. Not surprisingly, operating revenue dropped 7% to 3.34 billion ringgit as customers avoid flying with the airline after it suffered two tragedies this year alone. In a bid to combat escalating losses, the airline released a series of “must-grab” deals yesterday and new initiatives on flights between Australia, New Zealand and Malaysia.

New online offers will include special ‘Spring Sensation’ deals* on sale between 1 – 21 September from as little as $495 for a return economy class airfare ticket to Kuala Lumpur. For spontaneous travellers, Malaysia Airlines has rolled out a last minute ‘You Can Weekend’ fares starting from $557 which will be available to book this weekend. The airline recently increased commission to 11% for all tickets in all cabin classes booked from Australia until 15 September.

Regional Senior Vice President of Malaysia Airlines, Lee Poh Kait, said the new initiatives “are designed to inspire and encourage customers to dream, plan and book their next holiday, and help rebuild trust in Malaysia Airlines”.

“We would like to thank all our travel agency partners and passengers for their relentless support during what has been a difficult period. We are committed to regaining the confidence of our customers and the industry as a trusted five-star carrier. These new rates are a very competitive offering for both travel agents and customers as we build a stronger Malaysia Airlines,” Mr Lee said.

6. Hotel development classes come down under

1980s originator of Cornell Summer School Nick Israel with Cornell Prof Micke Flannery

1980s originator of Cornell Summer School Nick Israel with Cornell Prof Micke Flannery

The Cornell University School of Hotel Administration has announced its 2015 Australian programme for hotel executives, with the focus being on emerging marketing and media trends and their impact on hotel management.

Brought to Australia by Tourism Accommodation Australia (TAA) and Tourism Training Australia (TTA), the two programmes announced for 2015 will cover Strategic Development for Hospitality Enterprises and the Evolving Media Hospitality Management – both to be held in June in Sydney.

“No longer is marketing a completely separate aspect of hotel business, it has to be integrated in every aspect of the hotel operation – from driving occupancy and rate to building business for conferences and F&B. Cornell will deliver a programme that will show executives how to best incorporate digital marketing and social media into their day-to-day operations,” TTA Chief Executive, Bill Galvin, OAM, said.

Limited places are available with each programme costing $3500+GST.

7. Kangaroo Island gets maiden call

Cunard's magnificent Queens line up three abreast for the first time in dramatic photoshoot as fleet sails from Lisbon to Southampton to mark flagship Queen Mary 2's 10th anniversaryCunard has unveiled Australian highlights in its 2016 world voyage program, including maiden visits to Kangaroo Island, Adelaide and Newcastle and Queen Victoria’s first roundtrip cruise from Sydney. All three Cunard Queens will visit Australia in 2015 and sale for selected voyages are available from 5pm on September 10.

8. Beverly Hills comes down under

The Buzz Group has been appointed to act on behalf of Beverly Hills Conference & Visitors Bureau in the Australian and New Zealand markets as representation for all public relations and travel trade. In conjunction with the appointment, Beverly Hills Conference & Visitors Bureau’s Chief Executive Officer, Julie Wagner, will be visiting Sydney to showcase what Beverly Hills has to offer at Luxperience 2014.

9. It’s Game on at the Rocks

ROCKSSydneysiders should be getting ready to bring their A-game to The Rocks in September when The Rocks Square is transformed into a giant board game precinct. Games Central at The Rocks Square will be open for 5 weeks and includes a program of activities, talks and events. Visitors will be able to challenge one another to giant-sized versions of Ludo, Snakes and Ladders, Ping Pong, Jenga and foosball.

10. Knee Defender banned

kid-kicker-IMAGE

If the Knee Defender sounded too good to be true for you tall-folk, it is. The device which travellers can purchase and attach to the base of the tray table in front of them, restricting the person in the seat in front from reclining – has been banned across all Australian airlines and most other major US carriers. The device has made waves after multiple in-flight fights have broken out due to unhappy passengers, resulting in one flight having to be diverted.

According to recent research by Wotif.com, “Of the 8% of respondents who’ve experienced air rage, almost half put it down to a child kicking their seat, while 36% rage over front passenger recliners, 20% said sitting next to annoying passengers, followed by rude flight attendants with 18% of the vote”.

What’s your reaction to today’s news? Share your comments and feedback below or send us your news stories for the next edition of Need to Know.

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