Tag Archives: Australia (country)

How Long Can This Go On….Low Airfares

Sale Case

The losses are huge, big, enormous and it has hit every corner of the Travel Market and still it hurts, for the airlines it is Judgement day but for how long?

When Singapore Airlines are doing European specials you know life is bad, People will pay a premium to fly the smile high club so what hope is there for anyone else, British Airways have quickly dropped their premium route fare to nothing just to survive with an AUS$1444.00 fare SYD/LON, so Qantas will have to match that and these three airlines have been the big hitters on this route for decades so for them to drop it has to be the very last resort.

For Qantas their other Premium route SYD/LAX (los Angeles), has been decimated by V Australia’s close to as possible $1000.00 return fares, with United chopping fares as well for market share its going to be banging heads on the table in the offices at Mascot and not before time.

And suddenly as a break into a new market, Delta has already dealt in a sword in the ground deal of  AUD$982.00 from Syd with Air New Zealand’s counter offer of AUD $889.00 (including taxes) from Coolangatta is near as damn soil cheap as you can get.

This is a snapshot of just one aviation market in Oceania/Asia and it is being repeated though out many other markets in every part of the globe, the good side is that it has leveled fares that were overpriced on monopolised routes, Qantas’s SYD/LAX route fare $2000.00 was quite simply Sheriff of Nottingham territory and to have it halved showed the bonuses that flowed though the doors of the Geoff Dixon era, economic crisis or not that still had to happen.

So we are in the shit, so to speak and the few cashed up travellers are having a boom time, it can’t last and it won’t but it will not be all bad news.

The cheap fares are there because most Airlines are over productive with too many planes and the staff that runs them, as the airlines shred older inefficient aircraft they will create a newer tighter business, staff will go because you are not going to go and pickup and then go back to normal when the economy picks up again, today you need to be lean and efficient, and a good old shake out of the mattress will help the restructuring of almost every aspect of the Aviation Business so you can now throw out the old model and send in with the new as for the first time in its history except with a few bumps aviation is faced without its stunning growth year after year and so like any other business it will have to adapt to the current climate changes.

The cheap fares will last this year  but for the rest it should settle back down again which means many fares will rise as they have too because.

1. Airline restructuring will be completed.

2. Airlines are not public services they have to make money, break even at least.

That is the bad news…the good news is they won’t go nowhere near the old prices or will again, this is the new new for the business so SYD/LON should level out at AUS$1600-$1800 and SYD/LAX about AUS$1200 – $1300 which is still brilliant value, most domestic traffic will not push those AUS$1 a seat deals t0o hard and put on an average of AUS$20 per ticket price per sector, really low LCC (Low Cost Carriers) will have to improve their bottom lines as the likes of Ryanair (I’ll charge you), Easyjet et all, will not find profit in expansive growth anymore and will have to fall to the realities of the a real business model, and this is all in cattle class as even more changes will come in business class, but these prices do still depend on very stable Fuel costs going into 2010, if they rise then so will the fares by another 5% to 10%.

The only growth area will be in the International LCC (Low Cost Carriers), many have already failed in this new dimension to travel, but some pioneers are paving the trail like AirAsia and Jestar International but once the model is proven many others will quickly come abroad but don’t expect really stupid low international fares here, they will be cheaper than normal route fares but these carriers will want to survive and there is a boundary limit to how far down you can go down with fares as international travel is a completely different model to domestic and short haul travel (European) as you need infrastructure and personal at the other end of the route.

Another factor if it comes to pass is that many countries like Australia are being pressured to drop or reduce their heavy outbound and inbound airport taxes to encourage more traffic, and its these expensive government add-ons that can really make a biggest difference to an airfare price,and that is even domestically and should be curtailed as why should be the airlines that always have to shoulder the costs, these little termites are in many countries a bigger cancer than anything in a good tourism market and if the governments are scared of lost revenue then that is not the case as visitors will still spend more in the country if they are not robbed at the entry point.

..At the moment fares are too cheap and unsustainable and how long they will last is not very long, my guess is the Christmas/New Year 09 period and will not be as severely discounted going into 2010 as they were in 2009 and maybe a few excellent specials will still crop up in the traditionally really low periods, say March and Oct/Nov next year, so with an economic crisis or not airlines will not survive unless they do so, there is also a chance they could even rise sooner to stop the bleeding quicker and once one large influential carrier does so the rest will quickly follow, so the real push from next year for your dollar will be in super economy class with more leg room and better service and higher profitable fares for the carrier, the deals will be there but they will expect you to pay more for them so you win and you lose at the same time.

So if your going to fly on the cheap then fly now..and book quickly because fares will rise, but not enough to break your credit card limit…….

Updated 18th Nov 2009…..
I noted in the above issue that the fare to Europe would be AUS$1600.00 – $1800.00, the recent Fares for early 2010 are AUS$1685.00, and will be basically around AUS$1750.00 late 2010, but we are having the problem of very high fares coming  (USA/European Summer) to try to pull back some profit see current issue Airline passengers are back-so lets get back to work, as this is a cash in to pull back profit it won’t work except maybe in the early (May/June 2010) period, but it will scare more away than bring passengers back into their seats….

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Australia….a great big promised land of cross promotion

Australia…The movie is just about to be released (Nov 26) on to an expectant audience, Now I hear you rattling around saying, this is a travel blog, why don’t you write about this in newbluefilm, well the problem is I am not sure really what sort of deal this is, there has never been a shortage of funding for films to push a little about a product or product placement, Star Wars created an empire of not marauding killers roaming a galaxy far, far away but for interstellar profits from toys and other merchandising in creating a hype of a product that was in this case the film itself, in other words each promotes the other, and pays for the film to be made, its called cross promotion.

The poster wants to promote Australia the movie as the next Gone with the Wind, Aussie Style, but as a large sum has come from the Australian Tourist Board then your wanting to get something back for your tourist dollar, and as the tie-in movie ads are out, they don’t look that much different than the big screen epic in style and delivery….and its here I have a problem.

The general idea is to en-trance people to come here (Australia), see the sights, have a great experience, and mostly leave behind lots of your tourist dollars, but for years I have had a big problem with the general perception of Australian advertising mostly for eyes overseas.
The last big hugely successful advertising campaign for Australia was unfortunately with a bridge painter, Paul Hogan was a genuinely funny comedian that made the only commercial Australian worldwide hit, Crocodile Dundee in 1986, so “throw another shrimp on the barbi” was a promotion that tied in with Hogan’s persona and greatness was born, and the tourist dollars rolled in, so then every day since that marketing dream, Australian Tourism has replicated it over and over dismally, until the final act of the last campaign of “Where the bloody hell are you!”, that said more about the Australian Tourism body than about its product, so never short of a good idea, they then went back to basics and funded to the tune of $51 million another major motion picture, in other words… did the same bloody thing again…

I have no problem at all in a film promoting a country, James Bond films are just that, in fact most films are or placed delicately to show off their environments, but Australia is a bit of a doubter, yes it shows off our incredible landscape, top end, Kimberley ranges, wide open spaces and big, big Australia, great, yes brilliant, but……

First the film is set in 1941, and that is sixty seven years ago, not a great promotion for an upandcoming upstart of a country like Aussieland, second, most promotional material shown means that if you come here for a jolly good time, it consists of you, alone on a dusty red deserted outback road, with just a small dusty covered Kangaroo for company, and except for a few whitefellas, the only people you will meet will be aboriginal children and lost bushwalkers doing dreamtiming…or tracking..be stuck up a tree or alone in a large billabong (pool of water), miles and miles from anywhere, yes you will find yourself, because only you will be out there……alone!

…and dirty….and thirsty….and tired….and hot….and smelly…and hours and hours of dusty travelling boredom and who wants that!

Not me, I want comfort, soft bed, nice pool, cool drinks, mega shopping, beaches, great food, great wine, five star comfort, a ride on a rollercoaster, I’m on holiday for Christ’s sake, not working for a mining company, I want to get away from pain, and yet over and over again Tourism Australia want to plonk you outback in the never, never land where nobody goes except mining engineers go to get away from the wife.

And still they persist from Priscilla, Queen of the desert to almost anything made on film in Australia is shot in bloody nowhere, or scares you to dreamtime nightmares horrors like Wolf Creek or Rogue a killer croc, stranded eons away from anywhere, facing a lonely road death, any promotional film sent out by Tourism Australia or Qantas is shot in nowheresville, deadend Australia………are you surprised nobody is coming here…I’m not!

The few that do come, are really surprised that when you arrive at the airport within a shopping centre in Australia, there are biofuel taxis, not Hugh Jackman and a horse and carriage, and we do have other  mega shopping centres as well, good ones and that our restaurants are magnificent, and you can sit back and relax..cradle a drink while overlooking a great white beach or harbour view, you may argue that “well I can get that at home”, well no, it is still a different environment, Australia is different, the atmosphere is different, food is different, shopping is different, the whole experience is very different and that should be Tourism Australia’s message, same but very different, and most of all so are the people..

Australians are so laid back they are horizontal, they love their cruisy, long lunch, have another wine and look at that amazing view lifestyle, they love their sport (a little too much), outdoorsy, treking, beachgoing, boating, shopping, they work hard but they play even harder, and Australia is usually cheap to eat, stay and be merry, only problem is the long distance flight to get here, but once here, its hard to want to go home, and most who do come think of nothing of coming back again and again.

Its not all bad with a head in the sand attitude, Queensland Tourism have done a better job than most, Their “Beautiful One Day, Perfect the Next”, ad was a winner, and backed up with the right lifestyle visuals, “Very Gold Coast”, was a interpretation of the iPod generation Adverts, and that worked very well too, funny thing is Tourism Australia always leaves Queensland out of national campaigns, maybe they think Queensland Tourism doesn’t think they need any help or they loath them, so the market that should see them don’t…the important overseas market.

Every country has its cultural travel icon, “Come see me”, animals abound, China’s Panda, Canada’s Bears, Africa’s Elephants, lions, zebra and pink flamingo’s…….Australia its killer Crocs or Sharks that eat you whole, red back spiders “one bite and you’re dead”…….snakes…..lots of deadly snakes, even Indiana Jones hated snakes, am I getting my point across..

if you go to Australia you will die a lonely painful death…

Film’s in general have a shelf life of seven weeks, yes it is world wide exposure, but basically after two weeks your off the top spot and on the downward spiral, another blimp of life comes when the DVD is released, but then its soon in the discount bin, my second point is $51 million is a waste of money, it works out about a million dollars a day, yes invest in a film, but don’t throw the whole outhouse in on an advert with a cute aborigianal boy speading sawdust and most of the advert showing the dark streets of New York and not Australia…

Australia deserves better…..much better, $51 Million dollars better…..it is a great place to come and relax, shop, swim, see great vistas, in other words to have a great holiday, we need to sell that….more than a sixty seven year old film.

..have a good one…………(if you visit Australia you find out the meaning of the quote)

Australia Review: See newblueflim