Thu 21 Aug: 10 Things you Need to Know today

We’ve done all the hard work, so you don’t have to! Read on for our top ten travel news stories we think you need to know today.

1. Float off the cards for Qantas FF

Qantas are believed to have decided against a partial float of its $2.5 billion Frequent Flyer business, a move many have speculated in favour of, as it remains to be one of the most profitable areas of its business.

SMH reports that management is expected to advise the board it has chosen against pursuing the partial float or trade sale of Qantas Loyalty ahead of the airline’s annual results release next Thursday.

Over the past 9 months, the paper states, Qantas had been exploring floating “30 to 40% of the airline’s ­10 million-member frequent flyer program” which “analysts estimate to be worth between $2.5 billion and $3 billion”.

The float was part of an all-encompassing strategic review, in which the airline aims to cut $2 billion in costs over the next 3 years. Other options that have surfaced include splitting its domestic and international operations to attract foreign investment following amendments to the Qantas Sale Act earlier this month. Read more

2. Tourists avoiding Ebola regions

Tourists in droves are staying away from the entire continent of Africa as the Ebola outbreak intensifies. Tour operators in South Africa are claiming travellers from Asia, USA, Brazil and Europe are cancelling trips to destinations thousands of miles away from the nearest infected community.

“A lot of customers just see Africa. They see it as one country. I try and tell people that Europe and America are closer to the Ebola outbreak than South Africa,” Boshoff told euronews

Kenya Airways today announced that despite there being no reported cases of the deadly disease in Kenya, it will be temporarily suspending all flights to affected regions including Liberia and Sierra Leone on advice of Kenya’s Ministry of Health as a “measure to prevent the spread” of the disease. Read more

3. AirAsia profits soar

Budget carrier AirAsia has reported a six-fold increase in net profit for the second quarter 2014 despite a “challenging” aviation environment.

The Malaysia-based carrier profited 367.2 million ringgit (around A$124.4 million) an increase of 58.3 million ringgit for the same quarter year-on-year.

Attributing the increase to “foreign exchange gains on borrowings,” and a cutting out less profitable flights, according to news reports. The airline is said to have also seen a jump in revenue by 5% to 1.31 billion ringgit with passenger numbers increasing slightly.

4. Travel companies jumping on Uber bandwagon

Car service provider Uber are parking itself in the lifestyle space while expanding its reach, unveiling new partnerships with airlines, hotels and even the world’s largest travel site.

The company’s HQ in San Francisco unveiled the Uber API – open to all developers – and has already secured 11 partners including United Airlines, Hyatt Hotels & Resorts, TripAdvisor, Expensify, Time Out, Starbucks amongst others.

“Apps can pass a destination address to the Uber app, display pickup times, provide fare estimates, access trip history and more,” the company stated.

In a nutshell, the API allows partner companies to enable users to summon Uber cars from inside their applications for smartphones or tablets. Read more

5. Travel Exec’s get iced

Unless you’re living under a rock, you’d know the biggest social media campaign at the moment is the ALS Ice Bucket Challenge. Not just limited to Presidents, celebrities, the Queen (ok we mean Oprah) … travel executives are also jumping on the bucket-wagon.

Starting with Expedia Inc. CEO Dara Khosrowshahi who did the honours and then brought other online travel CEOs on board by challenging TripAdvisor CEO Steve Kaufer and Sabre CEO Tom Klein to join in.

Skift reports Mr Kaufer and the TripAdvisor team accepted the challenge, and Mr Klein is set to take up the challenge next week.

Several Expedia employees also took the challenge and donated US$100 each, according to the report, with the company pledging to match their donations. TripAdvisor’s employees did the same and raised US$15,000 for the cause.

The ice hasn’t melted between competitors, with Mr Kaufer challenging Orbitz CEO Barney Harford to be part of the viral charity-athon, according to Skift.

In the skies, USA’s Spirit Airlines CEO Ben Baldanza also took the challenge and tasked American Airlines CEO Doug Parker, JetBlue CEO Dave Barger and Delta CEO Richard Anderson to do the same, Skift said. JetBlue spokesman Marty St. George was amongst the first in the travel industry to take the challenge.

What is the Ice Bucket Challenge? Pretty simply it requires pouring a bucket of ice water over your head to raise awareness for ALS within 24 hours of being challenged or donate US$100 to the ALS Association. So far, the challenge helped raise $31.5 million for the association and brought 637,527 new donors to the association.

6. Lucky agents to journey through Middle-earth

Tourism New Zealand, Air New Zealand and Virgin Australia are set to run its largest trade famil and training event taking 250 Aussie agents through Middle-earth between 15-20 October.

The agents will come together in Auckland to participate in a day-long regional training workshop, and then journey through the country on one of 12 familiarisation itineraries.

Tourism New Zealand General Manager Australia Tony Saunders said the travel trade is critical to the success of New Zealand’s tourism industry as it’s one of the most effective channels to engage with potential holiday visitors.

“Providing agents with the opportunity to deepen their knowledge through regional training workshops and an action-packed itinerary will allow them to more confidently sell New Zealand.”

Tourism New Zealand and Air New Zealand will also use the familiarisation to raise awareness of its 100% Pure New Zealand Specialist Programme and the Air New Zealand online training modules. 

7. Green light for Aquis

A rendering of Queensland’s Aquis

The Australian Competition and Consumer Commission have given the green light to the proposed acquisition by Aquis Reef Holdings of the Reef Hotel Casino in Cairns. If the large resort and casino project proceeds, the Aquis Resort would be the second casino in Cairns.

“Development of the Aquis Resort is still at an early stage, and is conditional on a number of factors. Nonetheless, the ACCC understands that the resort, if developed, would be of a scale that is unprecedented in Australia. The total expenditure required to develop the first stage alone would be over $5 billion,” ACCC Commissioner Jill Walker said.

“The ACCC was satisfied that, if developed, the Aquis Resort will focus primarily on international VIP customers because the size of its proposed investment would require a much higher return than could be obtained from non-VIP customers.”

“In contrast, the vast majority of the Reef Casino’s customers are non-VIP Cairns residents and domestic tourists, making bets at relatively low stakes. The Reef Casino makes most of its revenue from gaming machines, rather than from table games.”

The Queensland Government expects to make a final decision on whether the Aquis Resort will receive a casino licence in 2015.

8. Expedia passes online test

Based on 2013 figures, Expedia acquires an average of 1.25 new bookings, every second of every day.

“The best endorsement you can get is when your customers keep coming back again and again,” according to Stuart Udy, head of The Expedia Travel Agent Affiliate Program across ANZ.

“Travel Agents have confidence in Expedia TAAP because they know we have to be on the ball and very competitive to be the best online,”

claims Stuart.

Almost 40,000 Travel Agents are registered for the program across 31 countries.

“Distribution for the Travel Industry has advanced dramatically over the past few years,” says Stuart. “Customers are demanding the best possible rates they can see on the internet but they still want access to the great service of their Travel Agent.”

9. Business travel backs tracking

The Global Business Travel Association has backed the International Civil Aviation Organization’s proposed Aircraft Tracking Task Force to track panes, following the downing of MH17 over Ukraine. As a result, the ICAO also created the Task Force on Risks to Civil Aviation Arising from Conflict Zones to examine risks to civilian airplanes in war-torn areas.

In a statement, Michael W. McCormick, Executive Director and COO of the Global Business Travel Association, said that the GBTA “applauds and supports the International Civil Aviation Organization for taking the important step of creating an Aircraft Tracking Task Force and a Task Force on Risks to Civil Aviation Arising from Conflict Zones. The combination of the missing Malaysia Airline Flight 370 and the downing of Malaysia Flight 17, have made some travellers nervous – these task forces can provide the industry with guidance and steps that can be taken to further advance air travel safety.

“With global business travel spending expected to hit a record $1.18 trillion in 2014, a 6.9 percent increase over spending in 2013, it’s critical that business travellers feel safe when they fly.

10. Radisson makes classy glassy upgrade in Melbourne

The 184-room Radisson on Flagstaff Gardens Melbourne has completed its latest refurbishments focused on new glass panels in the lobby, rooms, bathrooms and lifts.

General Manager Steve Finlayson said the work was undertaken quietly over several months without impacting on the hotel’s 90% occupancy rate.

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.