COMMENT: Daylight robbery

No doubt you have heard the expression, but did you know that it probably dates back to 1696.  It was an anti-taxation expression, and does have connotations today.

“Daylight robbery” refers to duty introduced in the reign of King William III by which houses with more than ten windows were penalised by an additional tariff.  It was assumed that this only affected rich people who could afford such glorious establishments.  The argument against was that residents were being robbed of daylight and that the tax, for that was what it was, had nothing to do with the building of houses but just another money grabbing scheme by the then government.  In various guises it remained until 1851.  In France the Doors And Windows Tax remained until 1926.

This Government imposed Air Passenger Duty (APD) at £5 for short haul services and £20 for long haul flights in November 2004 under an environmental pretext, a sort of 21st century version of the window charge.  In fact it was nothing more than a simple tax, finally admitted by the current Chancellor, the Transport Minister at the time.

Yes we are all thoroughly bored regarding APD but somehow we have to make this Government, and whoever will be in power later next year, come to its senses regarding yet another massive increase due in less than 12 months’ time. 

For most short haul flights the cost will be £12 in Economy but for really long distance trips, say Australia, the charge will be £85 Economy and £170 in Premium Economy.  Don’t ask for an upgrade!  It will scare off travellers connecting through Heathrow and (by being airside) not even stepping a foot in the United Kingdom.

And forget any ideas that if you travel on British Airways out of London City Airport to New York you will be taxed at the lower rate.  A single class aircraft with a seat pitch of more than 40" is charged at the higher duty rate.

An executive jet passenger pays no tax at all.

Let us consider what happens if you miss your flight for some reason.  The airline does not pay the tax.  Many refuse to reimburse the passenger on the grounds of handling costs (in this internet age).  It should be statutory that APD is returned to whoever paid for the ticket.

One thing for sure, 21st century jet aircraft are far quieter than their predecessors.  The industry has voluntarily made enormous efforts in noise and pollution reduction over the last 60 years since the first Comet passenger jet flew.  And the reward.  More tax.

You may ask the question “what aircraft is the worst offender in terms of din and smoke?”

Steve Ridgway of Virgin Atlantic answered that one at last week’s Airport Operators Association conference.  It is the Royal Air Force VC10 fleet based at RAF Brize Norton.  Steve lives near Oxford, perhaps 25 miles away, very much within earshot of the elderly transports.  They are the flying proof of how aviation has moved on.  The government should be taxing the Air Marshals not civilian travellers.

There is nothing more to add.  APD is daylight robbery.

Malcolm Ginsberg
Editor in Chief

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Atlanta introduces sleep rooms

ATLANTA HARTSFIELD, the world’s busiest airport in terms of passenger numbers, is to introduce sleep rooms.  This accommodation, which will be operated by Minute Suites, is a compact 213cm by 244cm and designed for travellers who want to relax, sleep or conduct business between their flights.  The rooms come equipped with a daybed sofa, pillows and fresh blankets.  Specially sound-proofed they have wi-fi, and a desk and phone.  The rooms are located in Concourse B and cost US$30 for the first hour and US$7.50 for each additional 15 minutes. www.atlanta-airport.com 

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British Airways gets closer to Iberia

BRITISH AIRWAYS has announced that Mr  Rafael Sánchez-Lozano Turmo will be joining the board as a Non-Executive Director with immediate effect.  Sánchez-Lozano is Managing Director and Chief Operating Officer of Iberia.  BA Chairman, Martin Broughton, said: "Following the signing of the MOU with Iberia, there are many ways that the two airlines will be working closer together.  We are delighted to welcome Sánchez-Lozano on to the British Airways board and look forward to the wealth of experience that he will bring to the airline." www.ba.com

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easyJet changes

EASYJET Chief Executive Andy Harrison is to step down next June and the company will announce a replacement “in due course”.  Mr Harrison, who is leaving “to seek new challenges” will be involved in any appointment.  In recent weeks he has queried the BAA sale of Gatwick and fronted an easyJet press conference dealing with old and noisy aircraft.  He also clashed with easyJet’s founder and largest shareholder, Sir Stelios Haji-Ioannou, over the airline’s policy regarding expansion strategy.  Sir Stelios is of the belief that aggressive expansion should be curtailed at the present time.  He had been sceptical of management’s plans to increase capacity, arguing that with the recession the airline should be more conservative in its plans for expansion.  Over the six months the airline has lost Chairman Sir Colin Chandler, Finance Director Jeff Carr and PR Director Toby Nichol. www.easyjet.com

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Hertz connects

HERTZ CONNECTS, which claims to be the only global car sharing club, is to expand its operation to Berlin and Madrid.  Now firmly established in a number of cities across the United States, in Europe only London and Paris have hitherto been represented.  Essentially members pay a yearly (nominal) membership fee.  Users book a vehicle online or through a smartphone application and pay for the car on an hourly or daily rate.  Insurance and fuel costs are included in the price.  Vehicles are parked in garages and members are told where to pick up the car.  Drivers use an electronic card – received at the time of membership – to unlock the vehicle.  You can take the car anywhere, but have to bring it back to where it was picked up. www.hertz.com

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Open Skies

OPEN SKIES, the low profile British Airways operation between both Kennedy and Newark airport's  New York and Paris Orly, is to continue its two-class Boeing 757 services the airline has confirmed to Reuters.  After dumping an Amsterdam – New York service it says it will announce another new route shortly.  BA introduced OpenSkies in June 2008 and subsequently purchased a start-up French carrier, L'Avion for €68m (US$100m) in an expansion move.  It now claims a 74% load factor after industry rumours of very poor summer figures.  "We have no plans to sell OpenSkies or seek third party investment in the airline," BA said in a statement emailed to the news agency. www.flyopenskies.com

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Thames Clipper river services too

LONDON’S underground and overland rail services are to have a single, integrated ticket system for the first time after agreement was reached to extend Oyster smartcard ticketing to most of London’s mainline rail services from 2 January.  Thames Clipper river services will join on the same date.  The only inner-London services excluded from the new deal are the new southeastern high-speed services from Kent into St Pancras and the routes to Gatwick, Heathrow and Stansted airports. www.tfl.gov.uk/oyster

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ON TOUR: International Luxury Travel Market

Hanging over the entrance to the 2009 International Luxury Travel Market swayed an enormous banner proclaiming “Definitely Dubai”.  It was just one of the many statements stimulating lively discussion and debate at the annual meeting – this year attended by thousands of luxury travel professionals including over 1,200 suppliers, 214 stand holders, and more than 1,100 international buyers.  The floor was busy.  The mood upbeat.

Dubai particularly epitomises everything about the glitz of what luxury represented in the early nineties.  However, at the opening forum a range of senior figures from the industry questioned the definition of luxury in today’s climate and suggested that the concept has felt a backlash in response to the economic crisis.  Tom Storey, President of Fairmont Hotels, opined that “luxury is in the eye of the beholder.”  What is suitable for one may not be for another.  Andrés Ergas, President of Nomads of the Seas, proposed luxury is “about giving people a new dimension, anyone can have a spa at a hotel, real luxury is being helicoptered onto a glacier and having a superb massage submerged in nature.  These days, it’s all about creating a memory.  There was no doubt that luxury is about exceeding expectations and needs.  However it is essential to know what these needs are and these are deemed to have changed.

Kristi Jones, President of Virtuoso argues the hotel industry is lagging behind in using technology to gain greater understanding of client requirements.  Technology used well can personalise the “wahoo” factor.  Use of effective technology within a fully integrated system means you can go that extra mile to ensure future business, “clients expect a seamless experience and technology can fulfil this role,” Jones continued.  The next generation of buyers will review, buy and inform about their travel experiences in a very different way.  Social networking sites, responsible ethics and population growth will ensure travel purchasing will be driven by different practise and those that respond to these drivers will be successful, ignore them at your peril.

Gone are the days of brash ostentation and the future lies with value.  Daniel Levine, trend expert from The Avant Guide Institute argued that travellers are “more value conscious and more conscious in their values”.  Value is no longer just about money, but relates to experiences, memories and even social values.  It is these the clients now seek, and must be matched by those looking to attract buyers.  Personalisation of these values will be key to future success in the market, as Ergas continued “it is more about the software than the hardware.”

Offering special discounts, or products tailored to an individual buyer, is more valuable than the customary champagne on arrival.  Personalisation is also particularly relevant to the changing demographics of the luxury traveller.  What is popular with Western luxury travellers differs immensely to Chinese and Indian visitors who are anticipated to form an extensive part of the future luxury travel population.

This growing demographic will also contribute to an increase in scarcity of destination and as such increases in price.  The future may see a time when sites such as Machu Pichu, or the Antarctic, may require booking years in advance, so creating an elite new set of travellers.  The super rich of course are looking further afield and Tom Storey of Space Adventures commented “we’ve sent more clients into space in the last 12 months than in the last three years – the eldest being 88.” 

Special guest speaker astronaut Dr Buzz Aldrin gave a passionate talk about the potential for space expansion suggesting governments really need to commit to programmes if the world is to be in a position to develop colonies on other planets.  Maybe a step too far in the future of luxury travel in the current climate but it came the same week as Richard Branson unveiled Virgin Galactic’s VSS Enterprise in the Mojave Desert.  Branson predicts that economies of scale will ensure the opening price will drop enabling larger numbers of thrill seekers to take a flight.  The future is perhaps nearer than we think.

Unlike last year where the global depression hung a dark spectre over Cannes, this year’s ILTM was more optimistic.  Jennifer Fox of IHG said “booking rates are back to normal, even if rates aren’t where we’d like them to be” and Guy Crawford of Jumeirah added “we are at the end of the beginning”, an interesting comment from a business with its main stake in the beleaguered Dubai.

Out on the exhibition floor buyers appeared more focused this year with less pre-arranged appointments missed and increased walk-ons to exhibition stands.  Businesses are already showing signs of moving towards personalisation for their clients.  “We met a number of buyers who have responded to clients private jet requests whilst in previous years saw it as fringe to their business,” said Jon Ingi Jonsson, Managing Director of Icejet, the European private jet company who flew an ILTM selection of VIP buyers in and out of Cannes for organisers Reed Exhibitions.  Nigel Hack, Managing Director of luxury travel designers Madrid and Beyond, confirmed this saying “agents had a real sense of purpose about them this year.  We were pleased to see more long haul agents and noticed a rise in attendees from Brazil.”  As a buyer Farzana Dobbs of London-based agent The Travel Gallery commented, “there was a refreshing sense of optimism this year.  ILTM left me with a level of confidence that the industry are determined to work together to grow sales and improve margins in the year ahead.”  Travel Gallery is a prime example of how agents can offer clients more than just value for money.  Their new Sri Lanka programme offers visitors a chance to work within the local community so feeling more involved with the destination.  “Whilst we don’t anticipate strong demand for this type of holiday, there is a niche there to be met and it gives us an opportunity to provide help and advice to poor communities in Sri Lanka.”

Cannes itself seemed unaware of the client’s search for social values as the ILTM parties were as extravagant as ever, and the hotels as glamorous as always with many undergoing renovation and reforms to satisfy the ever more demanding client.  Whilst the Majestic, Carlton and Martinez continue to offer sartorial elegance we chose the funky option and stayed at the uber-cool Hotel 3.14.  Yes it had sparkle, from the glitter-balls in the public toilets, yes it had opulence in the fabulous crystals hanging from the ceiling and yes it had style, housed in a fabulous art deco building.  Four colourful canaries were a talking point behind a mirrored bird house in the jade and purple reception reflecting the sparkly stones in the floor.

What it also had was a real sense of fun and humour about it.  If as Glenn Pushelberg of hotel design house Yabu Pushelberg suggested hotels are as much about “the feeling they give you,” then Hotel 3.14 is undoubtedly a master at making you smile.  The special touches such as the turquoise sacred cow in reception, or the “love box” awaiting the passionate in their bedrooms, add a sense of fun.  Each floor is a continent and coloured accordingly.  Yet there is nothing lost in comfort, perfect service and attention for its guests.  In this writer’s opinion in a world gone crazy for opulence, the Hotel 3.14 perfectly enhances the guests feeling of fun, sensuousness and being cared for, all at once.  We’ve already reserved our rooms for next year….

Jane Stanbury & Alison Chambers
www.emeraldmedia.co.uk

www.iltm.net  www.3-14hotel.com

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