"DISCOVER SCOTLAND" AIRCRAFT TO TAKE TRADE MISSION TO HAMBURG

easyJet, Scotland’s largest airline, has been was joined by Humza Yousaf, Minister for External Affairs, at Edinburgh Airport to officially unveil a new aircraft dedicated “Discover Scotland” and launch six brand new routes – Hamburg, Reykjavik, Berlin, Prague, Copenhagen and Dubrovnik.  

The new routes will open up important new trading links for the Scottish economy and easyJet has linked with the Scottish Chamber of Commerce to fly a delegation of leading businesses and organisations on a special trade mission to Hamburg onboard the inaugural flight.

Ten organisations from across Scotland, ranging from manufacturing and photography to legal and linguistics, will spend two days in Hamburg showcasing the breadth and quality of Scottish services and exports.

Hugh Aitken, Head of Scotland for easyJet said:
“As Scotland’s largest airline we’re delighted to facilitate the trade mission on board our inaugural flight to Hamburg. The introduction of six new routes will make it easier and more affordable for businesses of all sizes to do business in Europe. We know a great number of businesses already choose to fly with easyJet on our direct flights to cities such as Milan and Madrid, as well as between Scotland and London where we operate a business schedule of up to 160 flights a week.

“easyJet is committed to providing Scotland with an ever wider range of holiday and trading destinations and we look forward to welcoming passengers on board the new services.”

External Affairs Minister Humza Yousaf said:
“easyJet’s new route from Edinburgh to Hamburg will help build Scotland’s business and cultural links with Germany’s second largest and most prosperous city – providing greater opportunities for co-operation between our two nations.
“Scotland is a high quality market for any airline and it is my firm belief that this route will be a great success.”

easyJet expects the addition of a seventh aircraft to Edinburgh Airport to bring an additional 140,000 holidaymakers and business travellers to Scotland - benefitting the economy by almost £90m.

Gordon Dewar, Chief Executive of Edinburgh Airport:
“Route development is one of our key priorities and we are committed to providing all of our passengers with the best choice of routes possible.  The launch of these six new easyJet routes will strengthen our relationship with Scotland’s largest airline and will enable us to widen our reach as a capital city, opening up exciting new trade and commercial opportunities for our local business partners.

“We launched our new Route Development fund in January to drive competition and attract new airlines and new routes to Edinburgh, we will work hard with Scotland’s business community to make sure we are targeting and attracting the routes that they need.”  

Nora Senior, Chair Scottish Chamber of Commerce, said:
“easyJet’s continued investment in Scotland is vitally important to our economy, providing direct links to an increasing number of key overseas markets.  Chambers of Commerce across Scotland are working hard to support businesses as they seek to develop their international trade ambitions and Scottish Chambers of Commerce are delighted to be working with easyJet to bring this trade mission to Hamburg.  Germany is Scotland’s number four export market, worth over £1.3 billion a year to Scottish businesses.  New air routes bring such markets even closer and provide new opportunities for Scottish businesses to succeed.”

From 21 March easyJet will link Scotland with Copenhagen, Berlin, Hamburg, Reykjavik and Prague. From 27 April they will also serve the popular holiday destination of Dubrovnik. To serve these destinations easyJet are adding 2 new aircraft to their Edinburgh base and generating 160 new jobs. In total easyJet this summer will offer 51 routes across Aberdeen, Edinburgh, Glasgow and Inverness.

MTB 31/03/2013

SPAA SPRING SEMINAR & NETWORK LUNCH APPROACHES

SPAA Spring Seminar& Network Lunch - Tuesday 16th April 2013 at the Grand Central Glasgow Hotel

From SPAA Secretary, Janice Hogarth

"This is the first of our network lunches for 2013 and we are delighted to be holding it at the Grand Central Hotel in Glasgow On Tuesday 16th April.

Once again we are holding what we hope will be a helpful and informative seminar prior to the Lunch for both Members and Associates, where you have a great opportunity to put your questions to our expert panel on possibly one of the most controversial subjects that may affect your business.

Irrespective of the sector in which your company operates, if you sell air travel then your company will be impacted by the IATA and Airline-led development of NDC (New Distribution Capability).

The subject of this SPAA Seminar is “NDC and how this could affect your business“.

We would like to re-iterate - if you sell air travel then you NEED to come along and hear what this could mean to your business and listen to the experts. The panel will be chaired by SPAA President, Kevin Thom and features so far :

Ken McLeod – Commercial Director Advantage, & Vice Chair of IATA NDC Working Group

Svend Leirvaag -  VP Industry Affairs Amadeus

... and there are more panelists to follow, hopefully including a major airline.

The seminar will start at 10.15am for 10.30am and will be followed by our normal Network Lunch at 12.30pm for 1.00pm and there will be plenty of time for all of your questions. Don't miss this seminar!

We do hope you will be able to join us for this  important session and look forward to hearing back from you confirming your attendance at both the seminars and also the lunch.

If you would like to forward any questions in advance or are unable to attend, please do e mail me at jhogarth@spaa.org.

JH 31/03/2013

SPAA PRESIDENT WRITES TO CHANCELLOR IN ADVANCE OF BUDGET

SPAA President Kevin Thom has written to the Chancellor - the Rt Hon George Osborne MP - in advance of his upcoming 2013 Budget statement, with a renewed call to the UK Government to listen actively to the concerns repeatedly expressed by the Fair Tax on Flying Campaign partners. His letter reads :

"Dear Chancellor

We are writing to you not only representing the Scottish Travel trade but also as active members of ‘ Fair Tax on Flying ‘ and endorsing the comments already made by other trade Associations such as ABTA, BATA, AOA and Bar UK, regarding the damaging impact that Air Passenger Duty (APD) is having on the Scottish economy.

Last November, the three main Scottish Airports produced the York Aviation report which highlighted that in addition to costing Scotland over two million passengers per annum, the report warns that by 2016 APD will cost the Scottish economy up to £210 million in lost tourism spend per annum.

In February of this year, PwC published an independent report outlining the overwhelming evidence of the economic benefits that the abolition of APD would deliver.  In light of this report we would add our voice to the Fair Tax on Flying plea to urge government to take immediate action in relation to the levels and impact of APD. We feel that the Government should not plan to go ahead with any more increases in APD when data now shows that a new approach could deliver net benefits to the Treasury.

You will also be aware that over 200,000 people and over 100 MP’s (EDM 174) have now called for the Treasury to undertake a macro-economic impact assessment of APD. We are extremely disappointed
that, thus far, the Government has refused to undertake this despite the very strong and growing Parliamentary and grass-roots support for such a review. We trust that you have considered and carefully researched this new robust and very credible evidence ahead of the imminent Budget.

We are also member of the Holyrood Cross Party Aviation Group and we would welcome an opportunity
to meet  with you and any of your team to discuss this further."

Commenting on this latest move by the Fair Tax on Flying campaign group, the President said, "Throughout the time we and colleague organisations have been lobbying this 'listening government' on the subject of APD, the evidence has continued to mount of the damage this tax is doing - not only to UK Plc but also to the coalition's own efforts to return our economy to growth. We will continue to pursue our case until the penny finally drops and the Chancellor accepts that incontrovertible evidence, or until we have a Chancellor who 'gets it'."

MTB 17/03/2013

futureSPAA NEWS FROM Gayle Gordon

Another month in - I have so much information for you guys let’s cut to the chase and dive straight in!!”

Have you heard about the new Norweg ian Breakaway? - Are you dreaming about being onboard this ship for the overnight inaugural celebrations in Southampton on 29 April, but not been lucky enough to receive an invitation? Well, don’t despair, you may still be in with a chance, as, thanks to our friends at Norweg ian Cruise Lines, Future SPAA has 3 spaces available.  All you need to do is e-mail myself ggordon@alba-travel.com with the narrative “Future SPAA Breakaway Prize Draw” in the subject line and include your name, travel agency ABTA number & your phone number, before 15 March to be in with a chance.  It looks like it is going to be an amazing event, so let’s see if you can be part of it.  Please note, however, that you will need to make your own way to Southampton .

Red Sea Holidays – Wow, did you know that they offer great agent concessions of 50%? More details on the website www.redseaholidays.co.uk/agentconcessions

Airways Holidays – Don’t forget, Airways now offer 7 & 14 night holidays between 29 June & 14 September with direct flights from Glasgow to Guernsey for summer 2013 and, with prices starting from as little as £544.00 per person, this is a great option for clients who want some sunshine without having to travel too far.  What’s more, you will receive £10 Love2Shop vouchers for all bookings made before the end of March, and, if you quote GLA50 for departures on 17, 24 &31 August your clients will £50.00 off per person.  Also, for all other departure dates, just quote GLA25 and, yes, you have guessed it, your clients will receive £25.00 off per person.  Make sure you check out http://www.airwaysholidays.com/ for more details.

Travel 2  has been running a great incentive “Every Day is Pay Day”.  Great news – this was supposed to finish at the end of February but I am pleased to say it has now been extended until the end of March.  Simply e-mail payasyouearn@travel.com with your name, agency, booking ref, lead name & travel date. The more you book the more you earn!

Classic Collection now has a dedicated brochure for Croatia , Slovenia and Montenegro , but, if you haven’t received a copy yet, visit BP tradegate.  During March, your customers will receive a complimentary lounge pass and, don’t forget, continue claiming your £5.00 M&S voucher for every passenger booked!

Jet 2 Holidays is doing it again!  Yes, a New York City break direct from Glasgow on 14 November for 3 nights with prices from just £749.00 per person and this can still be booked for an amazing low deposit of only £60.00 per person. What are you waiting for - get this fantastic offer in your windows right away!

Citalia is delighted to announce the arrival of its ..brand new brochure and, to celebrate the launch, they are giving away double SHG points.  Make sure you order the brochure viaTradegate (girls – check out the guy on the front cover - YUM!)

LUX – Firstly, please note Rob’s new e-mail address, rob.okeeffe@luxresorts.com  The online training programme Expert, which has been in production for a year, is now close to going live and will be modular-based with prizes to be won.  This programme is very exciting as it will allow the travel trade personnel to educate themselves in their own time and at their own pace.  Look out for the pre-generated message arriving in your inboxes.  Also, Lux is offering Buy One Get One Free for stays in the Maldives between 20 May to 30 June and 01 September to 27 September 2013 – the booking window for this is 01 March to 30 April 2013.

DFDS - Fancy seeing Rihanna in concert?  For every booking you make, you will be entered into a monthly prize draw to win one of 8 places at the DFDS VIP table at the Stadium of Light in Sunderland on 20 June.  Enter your bookings details at dfds.co.uk/agent

The Easter holidays are almost here, so why not check out the United Airlines competition to win a selection of fantastic easter eggs.  Just send an email to competitions@united.com before the end of March with the title “Easter Competition” and state what anniversary the route Glasgow-Newark is celebrating this year.  Spring is an ideal time of year to visit New York and, don’t forget, United passengers can enjoy extra leg room on Economy Plus, or experience 180 degree flat-bed seats on BusinessFirst on all non stop flights from Glasgow and Edinburgh!

Emirates – With effect from 01 June 2013, there will be a second A380 between Dubai and Sydney offering double daily flights as below:-
DXB/ SYD         0215 2205 EK414 A380
DXB/ SYD         1015 0605 EK412 A380
Also, Emirates is delighted to announce the winners of the luxury holidays are:-     Lisa Love from Border Travel & Catherine Bradley from STA in Edinburgh – Well done ladies!

Who would like to win a wee FAM trip to Reykjavik ? With effect from 15 March,  Icelandair is increasing its frequency to four times per week from Glasgow and, to celebrate this, on 19 April, they will host a 3 night FAM trip from Glasgow . All you have to do is answer the following question and send your answer to Gabriela@icelandair.is -  “Icelandair has recently announced a fifth year round gateway for North America , which gateway has year round flights from March 2013?”

Air France & KLM’s partner, Delta, is pleased to announce the re-introduction of its daily nonstop flight from Manchester to Atlanta with effect from 25 May 2013 - for more information, visit the trade website at http://www.afkl.biz/

JTA  - Check out http://www.jtatravel.co.uk/ - these guys sure know how to do incentives.  Have a look at all the different incentives that are running at the moment.  One which jumps out at me is the North America Incentive – you can earn up to £20 per person if you book flights to North America with Air France , KLM or Delta!

I am attaching details from Glasgow Airport about the fab GLAMORE promotion that it is running at the moment -  have a look, it is astounding.

Have you had a look at http://www.spaa.org/ to see the pictures from last week’s SPAA Dinner?  Everything from the meal, to the speeches, to the pipe band and the British Airways Departure lounge was absolutely fantastic.  It really was a memorable night.  Well done to all involved!

I hope you have enjoyed ready this month’s jammed-packed edition and, as always, if you need me, you know where I am.

GG 11/03/13

'TRAVEL FROM THE INSIDE' AT THE 83RD - HILARIOUS + APPOSITE!

SPAA Dinner – 28 February 2013
‘Travel From the Inside’
by Ted Wake – Director, Kirker Holidays

Good evening my Lords, Ladies and gentlemen…distinguished guests, and fellow Sassenachs.   You might be wondering what on earth is Ted Wake doing here, armed with a microphone?  Imagine how I must feel about that…  Normally the build up to the SPAA dinner is a very pleasurable experience. I prise myself away from the Kirker office in London a couple of days early and make my way North to God’s Own Country…in order to find time to visit the crème de la crème of the independent Scottish Travel Agency community – (as well as doing my best to find time to squeeze in a visit to Jimmy Martin’s office…. ) before preparing for a night out with the good and the great of the UK’s travel industry.  In the old days, ‘Preparation for the night out’ used to involve a glass of my favourite Baillie Nicholl Jarvie scotch with a MacEwan’s chaser, or perhaps a vodka Red Bull if I was feeling a little tired and emotional.  However, these days it involves a glass of milk and extra time to do up the top button of my shirt – to say nothing of the struggle I had with my trousers.  And this particular evening, I am sure that you will all understand why I had to add an extra step in the procedure to include a double helping of Imodium…

So why me? What has possessed your SPAA Council?  Is it perhaps an indication that the Age of Austerity has really begun to bite into the ‘entertainment’ budget?  With Kirsty Wark still to come, I think we can all be reassured that SPAA finances are still in rude health… Is it perhaps because of my own deep-seated loyalty to booking my own family holidays in Scotland? (For the record, I take the Wakelets to the Island of North Uist in the Outer Hebrides every year.  For those who have never been, it is an extra-ordinary and very wonderful holiday experience – including not only beautiful and totally unspoilt white, sandy beaches combined with plenty of fresh air – but you also get a luxury cruise thrown in on the journey at virtually no extra cost.  The Caledonian MacBrayne ferry is the highlight of the journey for the Wakelets – oh how I like to spoil them…. I had better stop there, as I tend to get a little carried away discussing my Outer Hebridean experiences, and, I promised Lady Janice Hogarth, that I would stick to the script.  I shall be available at the bar later to discuss tales from the Outer Hebrides with anyone who shares a passion for this unique part of the world.

Since the first Scots agents – or more particularly – ‘Passenger Steamship Agents’ founded the SPAA in 1921 and then organised the first dinner in 1930, the SPAA has been recognised as one of the most distinct and distinguished travel associations on the planet – and you have, in spite of the challenges from the Deep South maintained your unique style…The SPAA has not sold out, you have not compromised, and you are all the more respected because of your determination to remain independent and relevant..
In terms of my own credentials as an “Independent”, I wondered if the SPAA had Googled my forebear ‘Hereward the Wake’?  I am proud to say that he was my Great Great Great etc Grandfather 37 times (according to Scottish genealogist Ian Moncrieff of that Ilk) and in 1066 Hereward was, according to legend, the last Englishman to hold out against William the Conqueror and the other French invaders.  (Wouldn’t it be a wonderful irony if Alex Salmond felt I might be a good bloke to ask for advice on Independence….?)  As I have mentioned the French, it would be remiss of me not to take the opportunity to say how sad we all are about the demise of the France rugby team…

So sorry to digress..Now, getting back to the SPAA, it has always puzzled historians, and me, why some nine years appear to have elapsed between the founding of the SPAA in 1921, and their first recorded dinner in 1930.  On the other hand, perhaps it was simply that the first nine dinners were of such spectacular quality that the participants suffered a nasty attack of amnesia…and all records were lost?
My own recollection of my first SPAA dinner is a little hazy. However, I do have a very clear memory of being given some advice by veteran dinner neighbours on my table, who pointed out that it was best to get tanked up early as the supplies of alcohol dried up long before the first speech started… (I trust that none of you dinner virgins here tonight will fall for such a dastardly trick).  It is fair to say that my two enthusiastic neighbours on that night then plied me with the appropriate measures of complimentary Drambuie and whisky to create industrial quantities of Rusty Nails (probably sponsored by old friends KLM and British Midland).  It was a splendid night out – (I think the ‘View from the Inside’ on that occasion was given by some bloke from Thomas Cook…my how times have changed… Not only has the TC Board had the good sense to employ a lady to run their business, but the SPAA has chosen someone from a much smaller, but perfectly formed independent tour operator…rather than another of the Big Boys ).  Other fond memories from that first evening include heading to the British Midland hospitality suite after dinner where I bumped into one of my dinner neighbours who bet me that I wouldn’t kiss Sir Michael Bishop as I bid farewell and ‘thank you’…  History doesn’t relate as to who won the bet…such are the adventures of an enthusiastic Englishman in Glasgow.

To return to the matter in hand for a moment, what is my view of travel from the inside?  In an age where consumers now have access to information as well as transparency pricing, one key principle that is critical to the success of all of businesses – whether you are an agent or operator –is the need to provide exemplary, and very personal, service. To succeed we have to exceed every client’s expectations before, during and after the client experiences their holiday.  The difference over the last 5 years – especially for premium products at the luxury end of the spectrum – is that it has to be ‘smart service’, something that enhances the client’s experience.  An action or thoughtful gesture that reminds the customer of the pleasure that can be derived from using an expert to help them arrange their holiday.  In our own business, we no longer try to chase bookings from clients whose main priority is price – if they want cheapness, they are better off going on-line where they can find cheap holidays by the bucket-load. This strategy hasn’t been put in place because we have become complacent, it is simply that we cannot be a jack-of-all-trades – it is essential to know what we are good at, and then to focus on those clients who are pre-disposed towards buying service, typically clients who like to delegate.

Of course, at the back of many clients’ minds is the question where they ask themselves – Why did I use a travel agent?  Why did I use a tour operator….? Couldn’t I have done this myself?  We can help to reassure clients that it is ‘worth it’ by making a thoughtful gesture – something that shows we care – perhaps something that gives them a gentle tingling sensation down the back of their neck.

Talking of tingling sensations down the back of my neck, I can remember one particular incident when I experienced exceptional service that I have never forgotten.  A few years ago, I was fortunate enough to attend the ABTA Convention in Acapulco – a while ago, but still very relevant of an example of outstanding service that impressed me at the time.  I was staying at Las Brisas hotel – perched up on the hill overlooking the long, sweeping beach around Acapulco Bay.  It had been a busy morning at the conference and I had persuaded Mr Kirker that it was time to head back to the hotel for a light lunch and some more Tequila research in the afternoon.  Las Brisas has elegant, contemporary rooms – each with its own small garden and private swimming pool… Those were the days.  Anyway, I got back to my room, had a quick shower, and was just towelling myself down whilst admiring the view (and reflecting on my brilliant decision to quit my career in botany & garden design to embrace the travel industry, firmly, with both hands).  At this point I threw my towel to one side, stood in the buff and reached for a Camel cigarette whilst gazing across Acapulco Bay, …wondering where my lighter was – when, suddenly, the door flew open and in walked the charming Mexican garden boy who was responsible for looking after the exquisite Hibiscus flowers that decorated my private pool.  So there I was, stark naked, in the middle of the room, armed with only an unlit cigarette, it was one of those moments when somehow events slip into a slow-motion phase… it was a little too late to rush for cover – so I simply stood there, and smiled.  The charming garden boy walked straight towards me, wished me a ‘muy buenas tardes…’ and without batting an eyelid, took out his lighter to attend to my second most pressing need – which was to light my cigarette.  I took a long drag, whilst gazing out across at the magnificent view, and reflected how I could really get used to this sort of service.   And like all great service, it was seamless – and at the same time it was very thoughtful.  The garden boy didn’t need to ask whether I wanted my cigarette lit – he instinctively knew it was the right thing to do. And probably a more sensible move than trying to help me with my towel.

I have often reflected on this moment and wondered how you can train staff to confidently take the initiative to create ‘perfect’ moments such as that for clients.  I have also often wondered about precisely where in the Mexican hotelier’s Garden Boy training manual it says – if you stumble across a naked guest in the middle of the afternoon, with an unlit cigarette – wish them a very buenas tardes, light their cigarette, smile (don’t laugh) and then carry on with your job as if it happened all the time.  The truth of the matter is that we all need to encourage our colleagues to take the initiative more often, to think about what their clients might need next – it is less about a book of rules, more about instilling them with a positive attitude that empowers them to apply excellent, ‘smart’ service, all the time.

One other great example of superlative service involved the Rambagh Palace hotel in Jaipur. I was staying there on a whistle-stop trip around Northern India researching for the Kirker programme and was lucky enough to be upgraded to the Maharajah’s suite. I returned to my room late at night, fully clothed… and realised that my suit jacket was missing a button.  For a chap who is concerned about his suits, this was not a good end to the day, and a bit of a challenge for me knowing that I had to leave at 05.45 the next morning. Then I remembered the ’24 hour Butler Service’… So, shortly before midnight I dialled the magic number… And within 20 seconds, there was a ring at the door, and there was the Butler.  He was charming, and reassured me that my jacket would be back by 05.30 the next morning…but could he also take my trousers as he would like to take the opportunity to press my whole suit.

The same Butler was back at 05.30 on the dot, my suit had been beautifully pressed, the button replaced…and they had also repaired the hanging loop in the jacket lining which had broken some time previously.  It was a brilliant lesson in exemplary service – and how to exceed a client’s expectations. There was no fuss, no fancy packaging – just great service – and a very real sense that my needs were their responsibility.

The point about the need to provide exemplary service and expert advice before, during and after the booking has been confirmed, is particularly relevant to those of us who are independent members of the industry who – like me – do not have a vertically integrated product, and therefore do not control delivery of our own product.  We rely on others such as airlines, transfer agents and hotels, such as those highlighted earlier, for the delivery of the product that we have sold as a ‘holiday’ – and although we may be very good at selecting the right elements to create an exceptional client experience, and we select our hotels and other suppliers very carefully, it is unlikely to be unique, and can be copied by others.  Providing ‘good’ service simply isn’t enough to survive, and business is made all the more challenging in an age where consumers have access to the same information – as well as transparency on price.

The one part of the process where we can impress our USPs upon the client is the way we sell, the level of expertise we use at the point of sale – and, of course, the way we use our own branding and style to ensure that the client remembers us for next time.   In addition to these points, it is essential that – having established what the client’s needs are, we don’t give them a choice – but do have the confidence to tell them what is good for them.  We are, after all, the travel experts – and if they really wanted a choice, they could have spent all night looking at the internet – there is plenty of choice there.  I was at an AITO presentation only yesterday where we were fortunate enough to have Telegraph Travel Editor Charlie Starmer Smith presenting on “The Future of Travel”.  One of his key points (I have para-phrased this slightly) was simply that, in an age when the consumer is bombarded with a vast range of choices on-line, one of the most critical elements of the service provided by expert tour operators and travel agents, was simply to ‘select a holiday for the client’.  By taking the responsibility for making the right choice on the client’s behalf we are already offering a valuable service – And the Telegraph editorial team are not alone in believing that, although the recommendation we make may not be the cheapest solution… for the client it is worth it, and represents better overall value for money.

If we look at other service industries and consider how we feel about being given a choice, increasingly I believe that being given a choice is an indication of poor customer service.  Some years ago, when it was tricky to find out accurate information about holidays – one key aspect of delivering good service was all about giving the client more choice.  Today, there is no shortage of information available on line – the breadth of choice is bewildering, it is overwhelming and continues to grow exponentially.  Thus what clients really need from us is guidance – we need to take responsibility for making decisions on their behalf.  If we can help them to sort out the wheat from the chaff – that is a service that adds significant value, and is a service that they will be happy to pay for.

Thinking of other professions for a moment, take the doctor for example – how do they look after clients? Their primary skill is in diagnosing the patient’s condition, and only having done a thorough diagnosis do they start to think about what to prescribe.  (There must be a lesson here – find out first, before we start to sell…) And when prescribing the perfect solution, how many choices is the patient given?  Probably none.  How many choices does the doctor have offered by the the vast array of drug companies?  Many hundreds.  The doctor is a trusted, experienced, expert tells the patient what is good for them.  How does the patient feel about this?  In the vast majority of cases, the patient feels mostly cured even before the course of treatment has started.  In my experience, I prefer not to be given any choice.

Sceptics have said for a number of years that there is no future in being a traditional travel agent – they argue that clients can either DIY and book their holiday on-line direct with airlines and hotels, or use an OTA.  But in my experience, the demise of good agents is not actually reflected in what is happening in reality – I keep meeting specialist tour operators and independent travel agents who have reported record sales for the start of this year.   This is certainly my own experience.    Where there has been a problem is in the segment where agents or operators have endeavoured to offer the consumer ‘cheap’ holidays…these businesses have found life a real challenge – because in the internet era, it is impossible to be cheaper than DIY, and besides, there is no future in the business model where you train the consumer that you can offer a ‘cheap experience’…

This is a vicious circle whereby the consumer will only come back to you when they are next planning to do something cheap, and you will only win their business if you are the cheapest… Price matching is similarly bad news, and should be avoided.  There is nothing particularly surprising in these observations, and it isn’t unique to the travel industry – you only have to look around at recent casualties in the retail sector such as Jessops and Comet, to know that life for businesses promising cheapness in the 21st Century is very dicey.
So, should businesses that elect to go up-market be more optimistic about the future?  There are some very positive signs out there to suggest that there is a bright future ahead if you aim high – John Lewis is a good example at the moment where they have continued to do well in a challenging market – based on a strategy where they promise the consumer excellent service – rather than ‘cheapness’. Their strapline ‘never knowingly undersold..’ is brilliant – and suggests good value rather than cheap…although I am still not quite sure what it means. They have also invested heavily in their website service combined with an exceptionally efficient next day delivery service.

But I would argue that there are many more reasons to be cheerful for businesses that provide consumers with high levels of personal service and expert advice.  Whilst we all need good websites, if you also deliver service using human beings – whether face to face or on the telephone, you offer the consumer a much more appealing proposition – because the Internet experience is soul-destroyingly dull, and furthermore – particularly in travel – has the potential to allow the consumer to create and buy a bad holiday, or perhaps more appropriately, the wrong holiday for their needs.  Buying on-line for sophisticated consumers is a fatally flawed process. I am convinced that there are an increasing number of cases of ‘what I call’ (sorry if I am beginning to sound a little like Miranda Hart’s mother…) Internet Fatigue Syndrome.

Booking anything more complex than a basic commodity on-line, is a hateful experience – and one that many customers are bored of.  There is an increasing realisation that if you want cheapness, the internet is likely to fulfill your wildest expectations – on the other hand, if you are looking for value for money, you are better off seeking out an intelligent human being.  The consumer can chat up as many friends as they like when considering holidays, but without consulting an expert agent or operator, they run the risk of booking a bad or under whelming holiday experience.  We can do a lot more to remind customers that life is far too short to risk it…but the good news is that the story down the pub is no longer only about the magic of shopping on-line, there are also some good stories about the frustrations of shopping on-line.  One of the most recent pub stories I have heard involves my daughter, Miss Eliza Wake – the eldest of the Wakelets – who has booked to go to Magaluf with a group of 10 friends next June to celebrate the end of A levels, leaving school etc.  No doubt she and her enthusiastic friends will shortly be consulting the Kirker Concierge for advice about booking a private walking tour around the fascinating Gothic Quarter of Magaluf’s Old Town.   Anyway, as you might imagine, I have made a concerted effort not to get involved – because this is the crème de la crème of the internet savvy generation, and her friend who was given the task of making the booking is very experienced at booking apartments, knows how to use seat-scraper websites for flights, and is renowned for always getting the cheapest deal…. As discussed earlier….if all you want is cheap, it is pointless consulting an expert travel agent or operator, there is no better way to do it than some late night DIY internet therapy, and Bob’s Your Uncle.

Anyway, being the nosey parent that I am, I couldn’t resist glancing at the email confirmation for the flights and noticed that it was for one of those torture charter flights that leaves at 23.55, arriving back into Stansted the following day at 03.15. The date of return rang a bell – because that is the date I have been asked to take off work to join in the school leavers PTA party… and a quick query revealed that the unofficial group leader had booked the wrong return date… Well it took off on the right day at 23.55, but, sadly, arrived back on the wrong day at 03.15 – with the result that they would all miss the long awaited celebrations at the Leavers Party.  I am pleased to say that the matter has now been resolved – but yours truly has had to fork out the £98 amendment fee. A simple but very costly error – to say nothing of the stress and hassle – not to mention a large helping of humble pie that has had to be consumed.  On a positive note, I cannot help feeling that this first-hand experience is an excellent way to groom the next generation of clients coming through who have learnt that the internet is not all it is cracked up to be, …and further evidence that you don’t have to be old to know that life is far too short to risk it…

In terms of making decisions on behalf of clients, I have one final example which involves a call I took from a tour operator friend who is a Summer Sun specialist who rang up on a Wednesday and asked to speak to me personally.  The conversation started with a South London “Err ’ello Ted. Sorry to bother you… I am going to Venice this weekend, it is my wife’s Silver Wedding…”  I began thinking that this is a bit of a wind up, because I would have been aware if this chap had booked with Kirker. So having pointed out that it was probably his Silver Wedding too, I asked if he might need some free advice about water taxi transfers or perhaps a restaurant recommendation…  My tour operator friend then confessed that he had a little problem… he had promised his wife many weeks ago that they were going to Venice to celebrate their Silver Wedding…but, unfortunately, he had omitted to book it.

So you can imagine how I felt at this moment – suddenly, this isn’t a request for free advice, here is an opportunity to help some needy chap who might well be obliged to buy a full margin holiday experience with all the trimmings.  It was, needless-to-say the Redentore Festival in Venice – the Feast of the Redeemer. And yes, we would be delighted to help.  It took quite a few calls, but I found a room by persuading my friend Mauro Zanotti to part with his very last one, we booked flights (one way Club Class) and I called my friend back, quoted the price…poor chap. He hadn’t realised that three High Season nights in Venice in a Junior Suite with Lagoon view, flights, water taxi transfers and museum tickets would cost £3000.  Having got over the fact that, for the price of week’s family holiday, he could treat his wife to the perfect, romantic, weekend in Venice… (of course I helped him a little with the price…after all, who knows when I might find myself in a similar predicament?) and I then broke the news to him that I had asked the Kirker Concierge to book a table for a delicious dinner on Saturday night at the Danieli’s Panoramic Rooftop restaurant.  At this point, my friend said “Gordon Bennett, Ted, how much is that going to cost??”

I estimated about €150 per person – not cheap, but a unique experience, and great value for money.  Needless-to-say, the next instruction from this particular client was, “please cancel the table – I cannot afford that”.   But, being an experienced ‘Lifestyle Manager’ and knowing that life is far too short… I said, I couldn’t cancel it now, because it would be impossible to find availability for a table again later – tables at good restaurants at this time of year were like gold dust…and surely, it was a very special occasion, surely his wife was worth it??!

I felt there was a relatively high degree of resistance, and so conceded that if he really wanted to cancel the table reservation, he could do so, but it was best to reflect on the decision, and do it when he arrived in Venice two days later.

And so the happy couple set off, our hero pleased (not to say relieved) that he had heroically booked such a wonderful weekend away to celebrate such an important occasion in style.  Meanwhile, I was wondering whether or not, he had decided to cancel the dinner reservation…or whether he had decided to do the right thing, and dine in style??

They returned to the UK on the following Monday evening, and I waited in vain on Tuesday for news, then – at last – on Wednesday morning he rang with feedback. I was beside myself with excitement – I genuinely wanted to know how this very special occasion had gone (aren’t we lucky to sell pleasure for a living?).. and so, he then told me: “The flights were on time, the water taxi sublime, the hotel was delightful and my wife loved the Lagoon view room…” What about the dinner??? The tension was killing me…  He proudly said he went ahead with the dinner, the restaurant table overlooking San Giorgio was spectacular, the food delectable, the wine exquisite…

“Ted, my wife looked at me through the candlelight and thought what a wonderful bloke I am – it was a great moment….. But, there was just one problem. As looked into her eyes, all I could think of was you……”

Ted Wake – 28 February 2013

SPAA PRESIDENT DELIVERS HARD-HITTING 'TOAST' AT THE 83RD

83RD ANNUAL SPAA DINNER -TOAST TO WORLD TRAVEL & TOURISM
Kevin Thom - SPAA President

Ladies & Gentlemen

At this event the subject matter for the President’s speech is usually limited to ‘World Travel and Tourism’ but not being one that readily conforms to what’s expected of me, I wanted to take a little departure from the norm in my address tonight.

We are all aware of the threats and challenges that we in the UK Travel industry face. With the likes of ATOL, APD, Direct Sell, Internet have all been well publicised and discussed in the past I wanted to talk about a potential danger from within.   Our staff!!

Now some of you out there might be thinking, my staff a threat, what he on about…. he’s lost it…. the boys on drugs!

Well I have to confess I was heavily medicated and very reflective when I drafted this, but to the members of the press with us this evening, I must inform you, they were prescribed drugs.

Please humour me as I share my reflections with you.

In the summer of 1977 at the ripe old age of 16 ½ years old I started work as a trainee travel agent at Ellerman Travel in Aberdeen.

Now I have to admit at that time I didn’t even know what a travel agent was. Coming from the poorer side of the tracks my only travel or holiday experience was a week at Butlins in Ayr when I was about 8yrs.

The fact I didn’t know what a travel agent was or what I was getting myself into was irrelevant and didn’t deter me.

When so many others around me couldn’t find work, I had a job, and I was proud.


My first Manager, was a character who was already in his 70’s called Bob Christensen, or Mr Christensen as we had to call him. A character, whom commanded respect and deservedly earned it from my colleagues and I.

As old and as stuffy as I perceived him to be, he did teach me so much in my early days, and I don’t mean just how to stamp a brochure, he didn’t have the foresight of the internet revolution but he taught me that people buy from people and a very important part of that transaction came down to your personality, your ability to listen, ask the right questions and your product awareness that enabled you to deliver on your clients expectations.

Now apart from teaching me the job itself, he turned my pride of having found work, into taking pride in my work and in the company I worked for.

This was much more than a job. This became a passion.

Now as I look around the room I am sure there will be a large number of you who had similar experiences when starting out in this industry, for who the job was much more than a job.

Now fast forward 35 years and I wonder how many people starting out today would say the same.

In the last 35 years the travel industry has change and with the development and introduction of today’s technologies it has, in some areas changed beyond recognition. Yes the internet and direct selling is capturing a sizeable piece of the market, but fundamentally the travel industry is still a people business. People still want to buy from people and technology is just an enabler for our people to make that shared personal experience more efficient.  

It’s not only the travel industry that’s changed, society has changed, and there I believe li-eth a problem. I don’t think anybody could argue that elements of our society are in decay. Ignorance is on the rise, basic good manners on the decline. There are too many people who today believe the world owes them.

You may be thinking that is a sweeping generalisation, and it is. But with any generalisation there are many exceptions and I am sure we all know and have many shining lights within and out with our own organisations.

As an example of this decay, I know from discussions with many of our associates that they are continually disappointed by attendances to events they may be hosting and in some cases are often discouraged from doing so again.

Large numbers accept invitations to such events then just fail to turn up with no explanation. That is plain bad manners and shows a real lack of respect for our industry partners.

Many of you will remember the day when armed with a thirst for knowledge and proudly representing the company we worked for, we would willingly sacrifice our personal time and attend travel functions on a regular basis. We may have encountered the odd hangover or two as a result but we always left with a heightened awareness of our host’s product and more importantly contacts that often proved invaluable at a later date.

I accept today people have different demands on their personal time with so many options on how to fill it but all I would ask is for company owners, managers directors etc to encourage their staff to attend events where they can and if they accept an invitation ensure they do go. Having accepted an invitation then failure to do so without good reason is just downright rude and not only reflects badly on the individual but also on their employers.

OK rant over, let’s have a look at the recent past, the present and the future.

Whilst here in Scotland the Pantomime season may have come to an end, down in Westminster it is in full swing, where the ugly sisters, Cameron and Clegg, and the evil villain, Ebineezer Osborne, supported by a cast of 100’s, continue their slapstick routines at the House of Commons.

Were it not for the fact they are damaging this country and economy their performance would be comical.

In fact with is government’s handling of the following issues, APD, ATOL, Airport Capacity, West Coast Rail Franchise,etc;  there would be enough material to write the script for a whole season of “Yes Minister”.

I raised this question last year, and I apologise for the repetition, but some issues just don’t go away.

How do we as an island nation develop and grow our economy through tourism, trade and industry, whilst we have a government that still seems intent on maintaining and increasing tax on aviation, which is already at one of the highest levels in the world.

In the last year, the ABTA led and excellently orchestrated “Fair Tax on Flying” campaign calling for a review of APD, has grown in members and in strength, gaining over 200,000 signatures in its email campaign and the support of 100 MP’s at Westminster, yet its voice still seems to be largely ignored by government.

During last year we had the publication of the York Aviation report, commissioned by Aberdeen, Edinburgh, Glasgow & Prestwick Airports which clearly highlighted the damage APD was doing to Scotland’s economy by potentially losing 2 million passengers per annum and a loss of £210 million pounds in lost tourism spend per annum by 2016. Once again, ignored by the government!


In January of this year, after pressure from the Fair Tax Campaign,  there was a debate in the House of Lords whereby a review of the economic impact of APD was sought. This was again ignored by our government.

There was the formation of the Cross Party Aviation Group whom after studying submissions from the SPAA and many other organisations also recommended a review of APD and its impact. Guess what, that’s been ignored too.
We recently welcomed a new report by Pricewaterhouse Coopers stating that APD was clearly damaging the economy and if axed could result in the creation of 60,000 new jobs and could boost the GDP by 0.46% in the first year with continuing benefits through to 2020.

This report used a dynamic approach to modelling tax impact which has been advocated by George Osborne, states abolishing APD would pay for itself by increasing revenues from other sources such as income tax and VAT. You’ve got it..Ignored!!

Only in pantomime is the obvious so readily avoided and usually results in chants of “It’s behind you” from the audience.

Well, let this audience tell the Westminster Players that APD is wrong, an immediate economic review is a must, which should lead to the tax being reduced if not axed altogether. This government still claims it aims to boost and grow our economy through international trade.

If this is the case then please do not ignore our call for positive change.

Any other action will only lead to the UK being priced out of the international market place.

I have often questioned if anyone at Westminster actually listens to the lobbying being done against APD by the SPAA, ABTA, Advantage the GTMC and may other industry bodies and airlines.

Well I stumbled across an article that was allegedly featured in the Guardian recently that may go some way to answering my question.

Apparently a website promoting extra-marital affairs is one of the most popular website visited by the people at Westminster.

Out of Town Affairs, which brings together married men and women, was visited 52,000 times in just seven months from computers used exclusively by MPs, peers and their aides.

Let’s do the math!!

Now if every visitor were on that site for an average of 10 minutes per visit that equates to over 361 days of not listening.

Now I have to admit to being a little curious, so for research purposes only, I went onto and registered with said site.

I submitted a cheeky wee profile and within 10 minutes I was shocked to have received two very suggestive messages.

Now you would think that would be a nice little ego boost.

Well it was, till I found one was obviously from a bloke, and the other from the partner of an ex-MP, who can’t be named for legal reason, well at least he said it was her that replied.

Thankfully the IT department at Westminster, as no doubt will my own IT Department, have blocked access to the site.

Joking aside our International and domestic growth continues to be handicapped by the governments lack of a sustainable Aviation Framework and their continuing dilly dallying over a third runway at Heathrow.

I know the government have commissioned an independent review which is not due out till after the next General Election and whilst the review is welcomed the timescales are not.

This country is already falling behind our European competitors, and with the delay in this review being produced, timescales of the decision making process and in obtaining planning permissions, would result in the UK playing catch up for generations to come.




Now another issue I have often commented about is how difficult and expensive it is to obtain a visa to enter the UK, but credit where credit is due the Government have made some improvements recently but still, it would appear easier to get horsemeat into our burgers, than it is to getting cash rich tourists and global investors into our country.

The Airport Operators Association stated earlier this week that visa restrictions are deterring Chinese visitors from travelling to the Britain, costing the Treasury around £1.2 billion in lost revenue.

Chinese tour operators continue to strike Britain from their itineraries because they view the UK’s visa system as “expensive, bureaucratic and lacking in transparency”.

The only beneficiaries of our continuing reluctance to implement appropriate improvements to the visa system are our overseas competitors.

Much more has to be done.

No one can spend money in a shop that has closed doors. If they are serious about boosting and growing our economy through trade with the emerging economies and markets like those in Brazil China India etc then the UK has to be open for business.

And without compromising on security, an easy and less expensive visa process has to be introduced.

They also have to abolish or drastically reduce APD and stop putting the UK at a serious competitive disadvantage.







My final words on Westminster relate to their handling of the ATOL system and the Air Travel Fund.

Significant steps have been taken in returning the Air Travel Fund back into the black. This may be good management or just fortunate there have been no major failures in the last 12 months.

With the ATF in a much healthier position it would appear moves are afoot to change the ATOL system once again.

There is a movement that suggest the treasury want to use the fund just for emergency repatriation and all other protection is to be provided and funded by the industry.

I don’t think this will be a surprise to anyone. This is an admission that the current system does not work and it has left the CAA between a rock and a hard place trying to pick up the pieces.

Despite the previously numerous and lengthy consultations a system where all travel consumers are protected, failed to be produced, so instead we start again but with the onus and burden to do so, being pushed back to the industry to resolve.

This movement of change is not just a few tweaks here and there on the existing system. It’s wholesale, and very shortly we will be back on the ATOL merry-go-round, with a government call for evidence due mid March

There will be difficult decisions to be made ahead as each section of the industry will seek different requirements. Tour operators will differ from Travel Agents, whilst airlines don’t want any part of it at all, and the legal issues of foreign carriers just won’t go away.

Where do we go from here? Trust accounts have been suggested but are they the answer? Insurance could be a solution but it is very unlikely that any insurance company would touch this market with a barge pole.

The failure to create a robust consumer protection system, and what could be construed as an apparent attempt to pass the buck, could be a blessing in disguise.

I said at this very dinner last year let us start with a blank canvas and create a simple, modern, transparent and fair system where total consumer protection is achieved.

Well they are wonderful thoughts but in reality the travel industry is a fragmented industry littered with protagonists and a solution that suits all may be difficult to agree.

It needs the right will to be achieved, but with the help of joint up thinking there will be a solution out there.  

Perhaps moving the management responsibility of this to the treasury and charging £1 tax on every ticket, for every passenger, on every airline might be the way ahead.

I don’t know if this is the answer because to make this a tax I believe would require primary legislation, but it seems eminently more sensible and would surely be easier and less complicated than trying to create and enforce alternatives that at best would be expensive, convoluted and piece-meal.

A similar set up worked in the Netherlands and with the right will to change, could work here.

In the leisure world there may not have been many significant failures in the last 12 months, but whether it be in the agency, or tour operators sector, any failure will have been very significant to those involved.

Whether you are an owner, staff member or a customer of an organisation that fails there will be an impact, and maybe that is something the drivers of some tour operators and travel agents today, need to remember.

There are many risks in chasing market share through aggressive discounting policies. By doing so you are devaluing your service, and devaluing the product you are selling, whilst at the same time creating a consumer expectation for the future, that will bite you and everyone else in this room on the bum.

It’s not just a game of numbers it’s about the livelihoods of real people, friends. I talked earlier about how today people may view their job and the company they work for. Maybe recognising your employer is gambling with your career might in some way be responsible for the level of indifference that may exist in our industry today.

The Thomas Cook recent stance on discounts has been seen as a brave move and one which I and many others see as a positive move and if only more operators and agents could see it this way, there would be far less discounting and more profit for all.

Everybody moans about having to do more work for less revenue. Well if you are in the discount game then you have no one to blame but yourselves. Less for more opportunities are right under your nose. Be brave, stop looking at what others are doing, do what’s best for business, best for the industry, stop discounting and earn what you deserve.

I said last year that we have always been advocators of the level playing field and operators advantaging their own distribution channels with preferential rates etc, would only succeed in alienating the mainstream channels, which potentially could provide them with far more growth and at a higher yield.

I believe the stance recently adopted by Thomas Cook proves my point. They are being supported and sold by many more travel agents up and down the country, and more importantly, with an improved margin for all.

As you would expect I will tonight talk about what we at the SPAA have been working on over recent months, and what we will continue to work on moving forward.

I asked Janice if she could do a brief summary of our activities over the past year and wow, it’s been a busy one.

I won’t list everything but here is an insight of what has gone on.

We drafted and provided government with submissions on

The Draft Aviation Policy

APPG Response on Competitiveness of UK Aviation

The Transport Select Committee Inquiry on Aviation Strategy

ATOL

We are involved with the Cross Party Aviation Group at Holyrood in challenging Westminster on a number of points.

As I mentioned earlier we are an active member of the Fair tax on Flying Campaign, and ran our own APD petition here in Scotland, and jointly with ABTA drove the initiative of letters on APD to all MP’s and MSPs

We held a number of meetings with the top-tier management of BA on the BMI Integration.

We had involvement in working with the EEC & ministers in promoting Virgin and their Domestic slots approval.

We have organised seminars where much needed ATOL clarification was provided and where BA were given the platform to provide our members an insight into some of the serious challenges they were facing during the integration of BMI.

We held our Question Time type session where representatives from our industry partners Superbreak, Royal Caribbean, Thomas Cook and United all found themselves in the un-enviable position of being grilled by myself and our audience on the industry challenges of today.

We’ve had meetings with most of the Major Airlines, Tour Operators, Cruise Companies and Technology partners operating in Scotland.

Socially we have had the 3 network lunches, summer ball, golf day, the SPAA Awards, SPAA Quiz and Face to Face Lunches in Aberdeen, Edinburgh and Glasgow. The 2nd STAR event.

We have worked  closely with the media on breaking news within travel, doing interviews on radio, and TV for both BBC and STV and providing comment for the travel and mainstream press.

And there is of course our monthly SPAA Council meetings.

The council had been operating at a reduced level for a number of years and as a result of our increased activity we needed more support to share the burden so I was delighted that in the last year both Kennedy Cree from Scotia Travel and Douglas Morrison of HRG agreed to join council and take active roles in the SPAA as we move forward.

Again on internal changes we have revamped our SPAA today, our future SPAA Facebook has seen a much increased level of activity, much to the credit of Gayle Gordon who does a great job of managing it. The integration of the SPAA Facebook and the Future SPAA is something we wish to implement shortly along with getting the SPAA on Twitter.

The list goes on and on and I hope with this little insight you can appreciate the time, effort and commitment the council members give to the SPAA on your behalf.

Moving on ...

As I touched on earlier, APD still gives us much cause for concern, and we continue to campaign for its removal or at the very least a significant reduction. As an active member of the “Fair Tax on Flying” campaign, we have worked vigorously over the past 12 months in raising awareness of this damaging tax, supporting all the activity in lobbying Westminster and through our involvement with the Cross Party Aviation Group, we will continue to lead the push here in Scotland.

There is still a suggestion APD might eventually be devolved to the Scottish parliament so it was encouraging to hear Keith Brown’s thoughts on the matter, if this were to happen.

Away from APD but still within aviation, there has and continues to be a lot of positive news for Scotland, but before I go on to highlight those I want to mention areas of concern that I have for the future.

In the world of aviation we have seen the significant rise of low cost carriers all over the world and with it the question of what is and what is not included in the price.

Now in the interest of all our clients, and the requirement for neutrality in our offering to them, we have all had to adapt the way we do our business.

As painful as that may have been, we at least knew the differences between legacy carriers and low cost carriers.

With the likes of Easyjet and Flybe providing a range of inclusive type fares, and,  as announced last week by both KLM and British Airways, fare offerings where no baggage or only hand baggage is included, those differences are now muddied.

From a consumers perspective when they chose to fly on a legacy carrier it was partly due to their inclusive nature.

A move like this adds confusion for the consumer and in the case of KLM could add a lot more work for your consultants, as this facility is not currently available through all GDS’s at this time.

I understand that for KLM in particular the European market is very difficult and that substantial losses are being incurred but still I would have hoped this move would not have been announced or introduced until such times all the GDS’s were on board.

I was hoping to look into a crystal ball and see a way ahead, see something which would inspire me to deliver some profound and visionary statement on this topic, but I am sorry to disappoint, these days I’m lucky if I can see my feet.

What I can say at this time is I find this move very worrying and I hope it does not become a trend amongst the legacy carriers.

I also have concerns on the proposed merger between American Airlines and US Air.

From a consumer standpoint, there are few benefits to offset the negative impacts of this proposed merger, such as reduced competition, an inevitable increase in fares, diminished services to small and mid-size communities.

Of course I understand the merger can bring financial viability to their air transportation network, but if I can quote Kevin Mitchell from the Business Travel Coalition based in the US. “Consumer harms from this merger are indeed exacerbated, as there are no substantial countervailing consumer benefits.

I can only hope this too does not become a trend.

I touched briefly on the readiness of the GDS’s to deal with certain changes some airlines wish to introduce, comfort seating and like I touched on earlier, baggage fees. I would implore them all to work with the airlines to achieve solutions to the problems that arise from these airlines idiosyncrasies as soon as possible.

The GDS is an integral part of any Travel Management Company’s operation. Many of us will remember life before the GDS, but for those of you who don’t, over the last 30years since it’s introduction, the GDS has been at the core of travel agency technology with all other technologies linking to or from it.

The GDS are under threat. New rounds of airline discussions will be ongoing as airlines seek to negotiate improved contracts moving forward.

Many negotiations will commence whilst in the background, driven by a handful of airlines, IATA make significant investment in a dream they call NDC.

Is this a shot across the bows of the GDS’s to maybe weaken their resolve in their airline negotiations, or a warning that you need to deliver products the airlines want.

If NDC became a reality then it would change everything about the way we currently operate.

Can NDC become a reality?  I don’t know, it is way too early for me to comment, but I can say with as certain degree of confidence, it won’t be easy.

That doesn’t mean the GDS can be complacent. If they want to stop IATA trying to reinvent the wheel they have to be more innovative in their product and airline solution development.

Now on a more positive note, despite the challenging times, airlines continue to invest in Scotland through new routes or increased services.

During last year Emirates launched a second daily service Glasgow to Dubai, which has proven very popular and the Emirates success story continues.

British Airways have increased their capacity on routes into Heathrow and London City from Glasgow, including the launch of a new service between London City and Aberdeen.

Virgin Atlantic having won the slots vacated by BMI enter the domestic market for the first time with flights from Manchester, Edinburgh and Aberdeen to Heathrow all due to commence in the next few weeks.

I stated earlier that the SPAA were very supportive of Virgins bid so  I have been a little concerned at the apparent lack of promotional work being done by Virgin here in Scotland and wonder whether their PR company have been too London centric in their approach to their marketing.

I appreciate commencing domestic services is completely alien to Virgin and it is a huge learning curve for all involved in the implementation, but to get the early support needed to sustain their operation, Scotland is where they need to be seen and heard.

It was great news to see the future of BMI Regional secured with their acquisition from BA last summer.  This safeguards so many vital routes from the regions and will lead to further new route developments in the future.

It is also great to see the return of Ian Woodley as Chairman of BMI Regional, back in the aviation business here in Scotland. I have a lot of great memories from his early days in aviation when he first launched Business Air back in the day.

Also with BMI Regional is a man who has worn many airline hats in his 40 plus years in travel and has had more successful comebacks than Gary Barlow. Of course I’m talking about Don Yule.

Tonight is the latest in a line of Don’s last nights in travel, as yet again he is retiring.

Joking apart Don it’s been great seeing you back and I wish you all the best.

Also another person who merits a mention tonight is Stuart Sim of Oceanair who is also retiring this year.

Stuart has been an ever present guest at this dinner since 1976, and I wish to take this opportunity to thank him on behalf of the SPAA, for his support during the years and to wish him all the best for the future.

Getting back on track ...

Air Canada is making a very welcome return to Scotland with their Edinburgh to Toronto service operated by Air Canada Rouge

Lufthansa following on from the launch of their Frankfurt service from Aberdeen, have shown further belief in and commitment to Scotland with the introduction of a Glasgow Dusseldorf service.

Turkish Airlines who not so long dipped their toe into the Scottish market by launching an Edinburgh Istanbul service are, on the back of positive support for this route, increasing their schedule to a daily service.

Other carriers like Easyjet, and Jet2 have also increased their commitment to Scotland and grown the number of services to and from Scotland.

Last year Aberdeen, Edinburgh and Glasgow all reported increases in passengers numbers which is positive news and is a trend I hope carries forward for 2013, as all three airports are making significant investment to improve passenger choice and the passenger experience, through both new routes and airport terminal development.

Glasgow Airport just announced this week an additional £10m investment as it gears up for the Commonwealth Games of 2014. Amanda McMillan. Managing director of Glasgow airport stated, this week that the eyes of the world will fall on Glasgow during 2014 and that Glasgow Airport fully recognise the important role it has to play in helping deliver a successful and memorable Commonwealth Games. This significant investment will not only benefit passengers travelling to Glasgow for the Games, but will leave a legacy which will benefit passengers for years to come.

So despite my constant moaning there are a lot of positives for our industry here in Scotland and I am sure these leaps of faith by airlines and airports are welcomed by our travel community and will be supported wherever possible and I wish you all success for 2013 and beyond.
Moving away from aviation and onto cruising.

I’m not in the cruising market but even I can see this is a sector not without its troubles.

Commission cutting is on most but thankfully not all cruise company’s agenda.

They have seen over a number of years some agents giving away large chunks of their commission by discounting the price to the client which actually devalues the cruise company’s product.

In an attempt to combat this and bring some much needed parity to the market they are reducing commission.

To make this an easier sell to the trade and retain the support of the agency world they have stated they will police the on-selling and discounting of their products and anyone found guilty of discounting could find themselves in the position of not being able to sell their product in the future.

Now when I first became aware of this during a meeting with one cruise operator last year I could see the sense on what they were trying to achieve, and in some way agreed with their actions but with the major caveat being they had to police this properly and not just pay lip service.

This initiative has only been in play since the beginning of this year and I have already been made aware of numerous incidents whereby it has been obvious that there are still people willing to undercut the market by discounting.

Well the cruise company police need to start feeling some collars pretty soon, otherwise your credibility in this market is going to be trashed.

Good honest, hard- working travel agents will not continue to support your initiative if you fail to keep your promises by not dealing with the rogue element out there.

Many of these agents struggle with this reduction in commission, particularly because of the additional duties they perform on behalf of cruise companies, that they receive no remuneration for.

Shore excursions for example.

These dramatically increase the agents workload in selling the cruise, and this should be rewarded.

A cruise company may offer 10% commission on the price of the cruise but in reality the commission % of the overall cost is much less, and quite frankly, I find that unacceptable. This is a service offered which is time consuming and costly to the agent, whilst being lucrative to the cruise line.

The other concern I have is on the dangers of over capacity at certain times. What are the cruise companies going to do to fill these cabins?

After pulling the trade up for discounting are they then going to be hypocrites and go do so themselves. I hope not, but however inventive or clever the marketing adopted by cruise companies in this position might be, it must always be available through the agency world, and not limited to their own distribution channels.

This is my second and final address at this annual dinner.

My tenure as president comes to an end in November this year, when I will hand over the reins to the Vice President Jimmy Martin.

This will be Jimmy’s second term as president and having previously gone through the huge learning curve you face when you take on this role, Jimmy can hit the ground running.

Will I be sad to step down when that day comes? Absolutely yes!

It is a great honour and privilege to be the SPAA President.

So far I have thoroughly enjoyed the experience, met some wonderful and interesting people. There have been many highs and many lows, heated debates and lots of laughter, sometimes hysterical, I may add.

Well if we didn’t laugh we’d cry with frustration.

The same frustrations I know that many of you share in aspects of our industry.

But still despite this, the World of Travel is still a great industry to be involved in, and we the SPAA will continue to be your Voice of Travel in Scotland, for the rest of my tenure, and for many years to come.

Thank you all very much for your continued support and for listening this evening.  

Can I please ask you now to charge your glasses and be upstanding for the toast ‘World Travel and Tourism’.





ENDS