Formally opening the helloworld Owner Managers Summit 2015 in Wellington, CEO designate Andrew Burnes highlighted the value and strength of the network to a packed house.
They say a week is a long time in politics. These days the same maxim could also apply to the Travel Industry given it was only a week ago that AOT and helloworld announced their historic merger spearheaded by Burnes, with the finalisation of the merger likely to take place in January.
And so it was that Burnes stepped up to the lectern on a wind blown Saturday morning in Wellington, just eight days later to deliver his keenly anticipated address to an audience of 600 helloworld branded, independent and associate members and suppliers from Australia and New Zealand.
An audience extremely eager to hear his thoughts.
Burnes spoke calmly and passionately for around twenty minutes, detailing his in-depth 28 year industry background across most verticals including previously owning 8 retail travel stores (Harvey World Travel, Escape and Travelworld), leading the AOT wholesale group since 1987, acting as Deputy Chairman of Tourism Australia for 5 years and also being the trustee of the TCF (Travel Compensation Fund) for 5 years.
He said that the industry as a whole was venturing into “Exciting and dangerous times” and that the helloworld network is “Up against fierce competition” in The Flight Centre Group and the now many other famous disruptors (Airbnb, Uber etc.).
A proposed Flight Centre concept store
“As you look throughout the travel industry it is littered with those who seek to take and are taking the travel consumer away from your stores, phones and your portals and onto their own and they have never been more active than they are today”
Andrew Burnes, helloworld designate CEO
“I am as critically aware of all of the challenges in the travel distribution business that you are facing because I’ve been facing all of those same challenges myself at AOT.” He said.
Burnes was keen to emphasise that, “The helloworld value proposition hasn’t yet been fully established within the minds of consumers.” A point he said that will begin to be resolved in January 2016.
He also recognised that very few people in the room were shareholders in the business. “I would like you all to at least consider having a stake in the successful transformation of our company. Before the end of January I will be outlining plans, which will see each and every owner of our franchisees having an opportunity to own a part of Helloworld Limited.” He said.
“I believe these initiatives will help to align our mutual efforts to continue to grow and develop our franchise network in Australia and New Zealand.”
Andre Burnes, Designate CEO, helloworld & Simon McKearney, GM helloworld New Zealand
Store opening hours was another area highlighted by Burnes with the insight that consumer’s today want to purchase travel on demand and that the groups present level of operating won’t be competitive enough.
“Our friendly competitors are open and we’re not”
Andrew Burnes, helloworld Designate CEO
Currently, most stores open from 9-5.30 five to six days a week with some members not represented on weekends and others stores operating varying hours dependent on location. As a solution Burnes outlined, the group will work closely with the members and their internal digital, technology and call centre solutions to ensure a “financially sustainable 24/7 experience” for all helloworld members and customers.
The merger could also mean that the 12 offshore AOT locations could provide some customer facing operations for helloworld travellers out of office hours and possibly even whilst on their travels.
What has impressed Burnes more than anything he said so far is the members “passion and resolve” to endure what has been a long and colorful journey over the past few years in the various iterations of the groups lifecycle. “They’ve been through a lot” he said.
helloworld Mt.Isa
“I have a fundamental belief that the core strength of this business is its franchisee and buying group networks and there is no more important part of that than the branded & associate networks that you represent here today.”
“It is not our job at Helloworld to take the bookings from your customers, it’s our job to send you those customers whether they are walking through the door, calling you on the phone or booking online.”
Put simply he said “Our job as the Master Franchisor is to put money in your tills.”
In closing Burnes said a “Very big thank you to the executive team and Helloworld for the very warm welcome they have given me over the last week and also to the many of you who contacted me to pass on your congratulations and thanks.”
He also especially thanked CFO and acting CEO Jenny McDonald for her “outstanding assistance during the negotiation period.”
“Like all of you, the travel industry is my life. It is my industry and my career of choice and like all of us in the room I am thrilled to be a part of this great industry of ours.”
“I’m not going anywhere and I want to give this business my best shot” he said to finish. A declaration that was met with rapturous applause.
