Creative Holidays goes down fighting

Creative Holidays goes down fighting
By admin


Despite implementing one of the most major transformations ever seen in the travel industry and investing millions of dollars to secure its future, this week Creative Holidays finally buckled under the pressure of the immense changes being wrought throughout the travel distribution landscape.

A statement released by parent company The Travel Corporation on Tuesday confirmed news of Creative’s imminent closure and restructure.

However, the writing had been on the wall for some time.

In early 2013, then managing director Paul McGrath spoke extensively to Travel Weekly about the massive challenges the company faced and the necessity for it to evolve. The advent of the web and a whole array of online competitors had cluttered the market.

aededdf5-3aeb-40e3-b4a9-71a875a7664a_Paul_McGrath-1_low

Former Creative Holidays MD Paul McGrath

“It’s a challenging market, it’s very challenging,”McGrath said at the time.

“There are far more competitors in our space than there have ever been and because the market is so busy we have to make it as easy for agents as possible.”

As a result, the company commenced a massive overhaul, with it moving away from its traditional brochure-only wholesaler roots of static pricing and limited content to become a “hybrid” operation, adopting an online approach that catered to the changing needs of both agents and consumers.

At the centre of the transformation was a shift from the Calypso booking system to a new web-based platform powered by UK-based Travel Studios. The new platform, which launched in November that year, offered a broader range of product, dynamic pricing and enabled agents to dynamically package.

Flights also formed a major part of the new offering, along with a far wider choice of hotel product that promised to put it on a more even footing with the OTAs in the marketplace. Meanwhile, the introduction of dynamic pricing would enable agents to use Creative product to price match online competitors.

And by holding onto its static product, it could continue to cater to those consumers who did want to thumb through a brochure and pick out a traditional package.

The high speed in which the new technology would deliver product and pricing to agents would also make Creative more competitive, McGrath believed.

The ‘best of both worlds” model started well amid much fanfare. And when McGrath departed the company in November 2013 to take up a role outside the industry, he was credited with getting the business back on track for continued growth.

His replacement, James Gaskell, formerly of Travelocity, came with extensive online credentials which boded well for the digital evolution of the Creative brand. His arrival also coincided with the transition from Calypso to the new web-based platform.

Under Gaskell, the wholesaler unveiled its new travel agent website in May this year offering “user-friendly interface and search functionality”.

James Gaskell Creative Holidays

Creative Holidays MD James Gaskell

The new site aimed to simplify the booking process, taking it from 32 steps to just eight, according to Gaskell.

“We’re trying to create a consumer experience for the travel agent,” he told Travel Weekly at the time.

“Agent feedback has been very positive with regards to the new travel agent website, new-look brochures and improved customer service.”

Speaking at the Travel Tech conference in Sydney in October, Gaskell was still confident, citing success for the company’s efforts to “move the dial”.

While wholesalers had previously had superior knowledge which they communicated to consumers through brochure racks, the consumer now had more wants, needs and, importantly, the ability to do their own research.

The new trade website helped agencies “keep up” with the consumer while still making money,  by delivering a consumer shopping experience to the consultant’s desktop.

“It doesn’t sound particularly game-changing, but believe me, it is,” Gaskell said.

Creative Holidays' new trade website

Creative Holidays’ new trade website

The proof was in the pudding after all, and to back up his case study, he revealed a graph of sales from a “very large” consortium partner which showed a clearly upward trajectory of sales with Gaskell revealing the peak had held through the last two weeks of September – the most recent figures available to the wholesaler at the time.

A slide from James Gaskell's presentation at Travel Tech 15

A slide from James Gaskell’s presentation at Travel Tech 15

However, despite the big reveals and the positive graphs, it appears the transformation simply wasn’t enough.

TTC Australia’s chief executive John Veitch branded the closure a “tough decision” which followed an “exhaustive” review of the brand over an extensive period of time.

“The fiercely competitive environment in which we now operate has made for a difficult business proposition for a mass generalist FIT independent wholesaler such as Creative Holidays, hence we have reached this sad conclusion,” he said.

TTC Australia chief executive John Veitch

TTC Australia chief executive John Veitch

“We wish to extend sincere gratitude to all of those in the industry that have supported Creative Holidays over the years and thank the team in particular for their unrelenting commitment.”

However, the company confirmed it would retain wholesale cruising arm Creative Cruising which had been moved to the Creative Holidays portfolio in April 2014. Indeed, Veitch confirmed that TTC continues to see “immense” growth in both cruising and niche specialist FIT operations.

“So our aim is to redeploy as many of the Creative Holidays team as possible into Creative Cruising and Adventure World, as well as other areas of TTC,” he said.

“We are currently working through this process with those whose roles have been impacted. It is absolutely our number one priority to look after our people.”

News of the closure shocked many within the industry, with some taking to online channels to voice their dismay.

One commentator by the name of Jean called it a “sad day” for the travel industry.

“We have just lost another iconic company,” she wrote. “One of the most innovative companies in the late 1980s who introduced the FIT product where the only option was package deals. Today is a very sad day but this is the way the industry is going.”

Rivals too took the opportunity to pay tribute to a “formidable competitor”.

Even as Qantas Holidays reported an enquiries spike as a result of the news, managing director Peter Egglestone spoke of its contribution to the sector over its more than 30 years in operation.

“Their presence has shaped the market and provided the continuing imperative for the ongoing evolution of the sector and our business,” he said.

Dan Nebauer of Inter Asia Holidays also lamented the news.

“You don’t like to hear this happening in the industry, even when it is a competitor,” he said. “Creative certainly were a competitive force against our own Asia FIT products.”

One thing is for certain – nobody can say that Creative didn’t give it its best shot. The time, effort and financial investment that would have gone into the company’s evolution must have been considerable.

But when the chips are down and the writing is on the wall, you cut your losses and move on. And with plenty of other thriving brands under its belt, that is exactly what TTC has done.

 

Latest News

  • Famil

TravHost launches expert hosting service to transform industry famils

TravHost offers a pioneering service bridging the gap between media professionals, travel agents and tourism organisations, addressing the demand for exceptional famil hosts. Founded by seasoned travel media professionals Fiona Harper and Carolyne Jasinski, TravHost is poised to revolutionise the way tourism organisations and travel companies approach famils. With decades of experience in tourism and […]

  • Tour Operators
  • Travel Agents

Book big and bag a spot of the TTC Tour Brand’s Top Achievers’ Famil

TTC Tour Brands’ Top Achievers Famil incentive is back, rewarding top-selling agents with the chance to embark on an unforgettable trip to a destination that remains a secret – for now. Agents who have sold any Luxury Gold, Insight Vacations, Trafalgar, Costsaver and Contiki, from 1 December 2024 to 14 March 2025, go into the […]

  • Business Travel
  • Conferences

New Zealand International Convention Centre to open in February 2026

The New Zealand International Convention Centre (NZICC) has announced it is opening its doors to New Zealand and world conferences and events in February 2026. The long-awaited NZICC is set to transform New Zealand’s conference and events industry, boosting visitation and the wider economy with its world-class facilities. Located in the heart of Auckland’s CBD, […]

  • Cruise
  • Events

AmaWaterways invites AU/NZ travel trade to An Evening with AmaWaterways events

AmaWaterways has announced the dates of its upcoming An Evening with AmaWaterways events for travel advisors, just over a year after it entered the Australian and New Zealand markets. Dedicated to travel advisors, the events will be held in six cities and will be hosted by AmaWaterways’ regional sales managers, plus feature a presentation from […]

  • Destinations
  • Tourism

Mooloolaba cruise season boosts Sunshine Coast tourism and trade

Mooloolaba is set to welcome a series of cruise ships through February and March 2025, significantly boosting local businesses and tourism to the Sunshine Coast. Their arrival is expected to create a vibrant atmosphere and provide a substantial economic uplift to the region. Viking Sky kicks off the season on Sunday 8 February, with 930 […]

  • Food & Beverage

Little Pete Brewing opens first of its kind open-air bar

Little Pete Brewing has opened a new open-air bar at 543 Step Rd, Langhorne Creek, a must-visit South Australia destination for a drink with a view. The first-of-its-kind open-air bar sits on 8ha, surrounded by vineyards and paddocks, with the Bremer River flowing nearby and framed by majestic ancient river red gums. “We always felt […]

  • Events

CENTREPIECE is set to make a splash at AIME 2025

CENTREPIECE is set to make a splash at AIME 2025 with a one-of-a-kind activation that showcases their world-class event capabilities to inspire event planners and decision-makers. CENTREPIECE is located in the heart of Melbourne & Olympic Parks, Victoria’s epicentre for live sports and entertainment and home to world-renowned venues including Rod Laver Arena, AAMI Park, […]

  • Destinations
  • Tourism

NYC Tourism + Conventions announces two exciting new events

NYC Tourism + Conventions has announced ‘NYC Off-Broadway Week 2025’ and ‘Value Family Activities’ events lined up for this year. NYC Off-Broadway Week 2025 2-for-1 ticket sales for this event have begun with this season’s program featuring 29 Off-Broadway performances, including 18 new participants. The twice-yearly program runs from 17 February through 9 March with […]

  • Events
  • Tourism

Jeju wins bid to host 2028 Asia-Pacific Microscopy Conference

The Korea Tourism Organization (KTO) has successfully secured the 14th Asia-Pacific Microscopy Conference (APMC14) for Jeju in November 2028. This was achieved in partnership with the Korean Society of Microscopy, Jeju Special Self-Governing Province, Jeju Convention Bureau, and Jeju International Convention Center. Korea was selected as the final host after strong competition at the 13th […]

  • Cruise
  • Food & Beverage

Oceania Cruises sets new standard for onboard dining: one chef for every 10 guests

Oceania Cruises, renowned for The Finest Cuisine at Sea, has set a new standard for onboard dining with an exquisite new menu evolution in The Grand Dining Room. Launching on its newest 1,200-guest ship, Allura, in July 2025, the reimagined menus introduce over 270 brand-new recipes, from curated Signature Eggs Benedict breakfast selection to a chic French […]