CINZIA BURNES offers her predictions for the year ahead. This interview is part of Travel Weekly‘s series in which we interview travel trade industry leaders.
Executive director of Helloworld and our reigning winner of the Travel Weekly Women in Travel Power List Cinzia Burnes isn’t known for mincing her words, and when it comes to suppliers who have given up printing leaflets she doesn’t hold back.
“Our clients are travel agents. Travel agents have shops. Not having brochures is like having a handbag store with no handbags on the shelves. They need brochures. They demand brochures,” she says.
“I’m a great believer that the collateral that the agents provide the clients is a big part of how they operate.”
Some of Helloworld’s preferred suppliers had even discontinued brochures only to reintroduce them this year Burnes adds.
The future is already looking bright
It might only be January but Burnes is already optimistic about the year ahead.
“The beginning of the year has been extremely positive. We have not experienced the lull you normally get between Christmas and New Year. We had great trading days even on the 30th and 31st, of December, which is quite unusual,” Burnes says.
“We’re still seeing a huge demand for cruises in our wholesale area.”
Bookings have also been bolstered by people booking peak destinations outside of peak times – such as Europe in autumn or spring.
Weak dollar not slowing bookings
One of the trends that has been a key focus over more recent times is the weak Aussie dollar, however, Burnes says that it is not stopping people travelling or having too much of an impact on their destination.
“It’s always been our view that people have a budget in mind and whatever that budget buys, the exchange rate becomes quite relevant,” she says.
“If the dollar is strong, they might go a bit more upmarket. If the dollar is weak, they might purchase a different level of accommodation. A change in exchange rate doesn’t make people pull out of a holiday – they might just go for a shorter time or spend less by choosing slightly cheaper products.”
Aircraft present a challenge
One of the main challenges for the industry right now is the availability of new aircraft. Currently, the limited number of larger planes and planes in general is keeping prices high, she says.
“I don’t see a massive reduction in airfares to anywhere. It’s simple supply and demand – that is the way the economy works. And the demand is very high.
“Some people are complaining about how high the airfares are. But while people are happy to pay those fares and continue to fill the flights, and we have a shortage of new aircraft, I don’t see that scenario changing much.”
Other ways for agents to increase value
The good news for agents is that there are plenty of other ways they can increase their TTV, Burnes says. Some are doing it through experiential offerings and luxury products.
At the Helloworld Travel’s Frontliners Forum in Singapore last year, Burnes revealed that Helloworld would be unveiling a whole new suite of luxury offerings via VIVA Gold.
“I think that people are also looking at more experiential things which are more expensive,” she says. “There are a lot of expedition cruises now. There were very few in the past, but now traveler demands have become more sophisticated. There is a lot of demand for these very niche products. It’s interesting.”
THE YEAR AHEAD: Joel Katz, Cruise Lines International Association Australasia
Feature image: Cinzia Burnes at the Travel Weekly Women in Travel awards last year.
