Showing posts with label airlines. Show all posts
Showing posts with label airlines. Show all posts

Tuesday, 15 January 2013

Vladimir Raitz - The First Travel Pioneer





Continuing the theme of great travel entrepreneurs, let’s remember a true pioneer of the post-war package holiday industry; Vladimir Raitz.  

In the period from his first  trips to Corsica, Vladimir Raitz built the first, and one of the UK's most respected, holiday companies, Horizon Holidays, overseeing the business until the early 1970s.




Corsica for £32:10s per person and as much wine as you could put away

When Vladimir Raitz launched his business, few people could afford a foreign holiday. A return flight to Nice in 1950 for example, cost £70 (or about £1,700 today).  What Vladimir offered in 1950 was an all-inclusive package holiday to Corsica for £32 10s - including return flight, tented accommodation on the beach "delicious meat-filled meals and as much local wine as [you] could put away".

His first flight, with 11 paying customers looking forward to a week in the sun, took off from Gatwick in May 1950 in a government-surplus Dakota DC3. The plane landed at Lyon to refuel before continuing to Calvi. The whole journey took six hours.

Vladimir later recalled: "When we arrived at Corsica airport, there was nothing at all – not even a little hut. [We had] to shelter from the sun under the wings of the plane while we waited for the bus to pick us up." Once at the beach, the holiday-makers were greeted by large canvas tents, each with two beds. There was an area was set aside for "ablutions", a dining room, bar and dance-floor. "A pastis was a few pence," Raitz said, "a bottle of wine was nine pence."

His company was Horizon Holidays

Horizon Holidays..

 


Horizon soon added Majorca as a destination, followed by Sardinia, Malaga and Perpignan.  As it expanded, the firm added Tossa de Mar on the Costa Brava, then a small fishing village with a handful of hotels and bars and no bank. Vladimir later regretted the over-development of that part of the Catalan coastline.

None of this was achieved without difficulty. British European Airways objected to his flying to Corsica because it constituted "material diversion of traffic" – despite the fact that they did not fly to the island. And at first he was only allowed to carry teachers and students as all other occupations were banned!

There were also strict government regulations about how much money you could take on an overseas holiday: "At first it was £50, and that was later cut to £25," he recalled. "But we could keep the price of accommodation down to about £15, and the charter flight was payable in sterling, so there was still some spending money left over."

His Early Days in Russia, Berlin and Mill Hill


Vladimir Raitz was born to Jewish middle-class family in Moscow on May 23 1922. His father was a doctor and his mother, Cecilia, a qualified dentist. In 1927 Cecilia left Moscow to join her parents, who had fled to Berlin. She took Vladimir with her and he never saw his father again.

In Berlin he saw the rise of Hitler but in 1936, Vladimir joined his Grandparents in London and went to Mill Hill School. He arrived fluent in Russian, German, Polish and French, but with no English and yet by the end of his first term he was top of the class in that subject. 

Vladimir went on to the London School of Economics, where he read History, then joined the Reuters news agency. Throughout the Second World War he interpreted foreign news broadcasts for Reuters and United Press.

He was still working for Reuters when, in 1949, his grandmother died, leaving him £3,000. He left the agency, using his windfall to establish Horizon Holidays.

He was aware that since the end of the war there had been a surplus of government aircraft which were available for charter. Most were taken up for transporting cargo but Raitz saw a different opportunity, having just been invited by another expatriate Russian to visit Corsica, where the man was running a beachside "holiday camp".

Competition Appears


Even Vladimir could not have foreseen the huge expansion in holiday travel that was to follow his Corsica experiment. Between 1960 and 1967, the number of Britons going abroad soared from 2.25 million a year to 5 million. Horizon became one of the UK's largest operators, spawning Club 18-30, which was, he claimed, simply a holiday company for young people and not as a vehicle for sun, booze and sex that it later became.

However, the company could not cope with the vicious price war that broke out in the early 1970s, sparked off mainly by the biggest operator, Clarksons. Horizon began to lose money. After a desperate struggle to keep it afloat, the final blow was dealt by the oil price crisis which followed the 1972 Arab-Israeli war. In February 1974 it was taken over by Court Line, Clarksons' parent company. Court Line itself went bust shortly afterwards, owing £7 million to some 100,000 holiday-makers.

The collapse was particularly serious because there were then no proper bonds or protection schemes to safeguard people's holidays against bankruptcy. In the wake of the event, Civil Aviation Authority bonds and the Air Travel Reserve Fund were established.


Later Reflections on the Effects of Package Travel


Vladimir admited to having mixed feelings about the consequences of modern tourism. Benidorm, he noted in 1989, "looks bloody awful now – but that's progress, I suppose". More thoughtfully, he added: "On one hand, I hate to see resorts being despoiled. Take Minorca. There used to be a beach, no road to it, you used to scramble down through the scrub. Today it is ringed with hotels. To that extent, I am sad... On the other hand, I think it's marvellous that 12 or 13 million people can have a Mediterranean holiday and enjoy themselves."

"Providing a fortnight in the Mediterranean sun to a wide segment of the British public, hereto the prerogative of well-to-do members of the bourgeoisie, brought with it what can only be described as a social revolution; the man in the street acquired a taste for wine, for foreign food, started to learn French, Spanish or Italian, made friends in the foreign lands he had visited – in fact became more 'cosmopolitan', with all that that entailed."

And Thomson too..


Vladimir remained one of the principal players in the British tour operating business for 25 years. On behalf of Sir Gordon Brunton, of the Thomson organisation, for example, he acquired Skytours and Riviera Holidays, which merged to become Thomson Holidays.

Despite the downfall of Horizon, Raitz remained in the travel industry. During the late 1970s he organised tours for the Maltese Tourist Board where I had the pleasure of working alongside him at Medallion Holidays.

Vladimir Gavrilovich Raitz, entrepreneur, born 23 May 1922; died 31 August 2010

Wednesday, 31 October 2012

New Exhibitors for WTM 2012



The World Travel Market is welcoming 157 new exhibitors at the event for WTM 2012 with some new interesting names (but sadly not Molvania just yet....)


Europe leads the way in new exhibitors with 41 exhibitors appearing for the first time as Main Stand Holders. They include tourism boards and offices as far apart as San Marino, Lille and Belarus as well as the Republic of Komi, in North Western Russia.

The Technology and Online Travel region has 36 technology companies taking their own stands from a wide range of disciplines including names such as Travel Republic and Online Travel Training. 

Software firms are represented by Hotelogix and Intuitive, while the rise of social media and mobile is reflected in the appearance of specialists in this area such as Revinate and Voiamo Group. Other suppliers exhibiting for the first time include Worldpay and technology services company Wizie.

The Global Village region sees 18 new exhibitors from all parts of the industry including the K+K hotels chain, wholesaler Adonis, Autorent Car Rental and Chic Outlet Shopping in Europe.

Asia has 13 first-time exhibitors (reflecting the growth in China’s travel industry) including China Southern Airlines and newer destinations such as Vietnam, Uzbekistan and Kyrgyzstan, represented by Victoria Vietnam Group, Saigontourist, Uzbektourism and the Kyrgyz Association of Tour Operators.

India has its own dedicated stand-alone region with 12 new exhibitors including Brys Hotels, Inbound Tour Operator Council (ITOC), West Bengal, hotel company ITC Limited and Odisha Tourism.

The UK has 12 new exhibitors including English Heritage (for the first time??) and the National Trust, plus London attractions The View From the Shard and Ripley’s Believe It Or Not.

A further ten new exhibitors will attend the show in the Africa region highlighting a continued development  in African tourism, as Africa emerges from last year’s Arab Spring. Notably these include the Libyan Export Promotion Center and Airkenya Express.


Tuesday, 26 April 2011

# 23 Hong Kong Wing Chun


Watch out when you fly Hong Kong Airlines, it seems the airline is making all its cabin crew take kung fu lessons to help them to deal with drunk and unruly passengers.

Hong Kong Airlines said all staff had been invited to undergo training in wing chun - a form of kung fu used in close-range combat - but it was only compulsory for cabin crew, the Sunday Morning Post reported.

The airline had around three incidents involving disruptive passengers every week, said Eva Chan, the carrier's deputy general manager of corporate communication.

Two weeks ago a crew member had to put her martial arts training into practice on a flight from Beijing to Hong Kong.

"One of the passengers was sick but he was probably drunk and felt unwell. The crew member attended to him and she realised her fitness was helping her, especially because the guy was quite heavy," Chan told the newspaper.

Normally, a female cabin crew can't handle a fat guy, especially if he's drunk, but because of the training, she can handle it quite easily."

Wing chun instructor Katherine Cheung said the martial art was ideal for airline crews.

"Wing chun can be used in small, confined spaces so it's suited for an airplane," Cheung said. "It's easy to learn but difficult to master.

The Guardian offers some pictures of the kind of moves the wing-chun-trained cabin crew could be using at 36,000 feet.

Oh, and here's Bruce Lee offering his version

Thursday, 21 April 2011

Happy Easter - break out the BBQ


So Happy Easter!

The UK's bonus holiday (Easter, Royal Wedding & May Day) has started, with reports of extra flights leaving for supposed hotspots overseas.

But many people will be flying off to cooler climates, with pullovers a precautionary measure in Corfu and Barcelona, while T-shirt weather continues across the British Isles.


The cooler temperatures along the north Mediterranean coast will see London comfortably hotter at 24C (75F) than Barcelona at 16C and Corfu at 17C .

In the UK, roads to the coast are getting busier, with the Met Office confident that the warm, calm spell will continue well into next week.

The Highways Agency announced the suspension of roadworks at many major sites to help holiday traffic flow, although essential repairs will continue on parts of the M1 and M25. The fire-damaged stretch of the M1 between junctions one and four in London has fully reopened.

Network Rail is optimistic about smoother journeys than last Easter, with less engineering work over the holiday and an estimated 18% more trains running. There will be disruption, however, on the West Coast line in north-west England, the Great Western line and at Liverpool Street station in London, where essential repairs and modernisation need the quieter holiday period to get work done.

Holidaymakers travelling overseas this Easter are expected to top 2 million, in spite of the recession and the balmy climate in the UK, with Amsterdam, Dublin, Paris and Rome the favourite European destinations and New York topping long-haul bookings.

Meanwhile with temperatures expected to bemore than 10c higher than the National Average at this time of the year, Homebase has reported a 20% rise in BBQ sales compared with Easter last year and that it is expecting to sell enough gas to fuel 300,000 barbeques along with enough garden chairs to fill Westminster Abbey 30x over!

Enjoy!


Wednesday, 20 April 2011

Take the train!



I've just returned from a few days business in Edinburgh and as usual I took the train rather than the plane.

I used to enjoy air travel as part of my job but over recent years flying has become more of a chore than a pleasure - regardless of what class you are sitting in!

Far from being herded from holding pen to holding pen, before squeezing into my tiny and uncomfortable seat, the train gave me more space, I was able to work solid for two hours and was able to wander around and stretch my legs, arriving feeling none the worse and ready for business.

So, with the EU suggesting that fewer flights and more train travel is the way of the future it's interesting to see how European train travel compares against the airlines head-to-head.

For the quick hops through the tunnel, only a fool would now choose to travel by air.

The train is not only faster but cheaper. But for further destinations you need to change trains in Paris or Brussels and the journey time and cost increases. For Cologne, Tours, Lyon, Amsterdam and Marseilles, the train takes up to an hour more than the flight.

And even further down the line to Geneva or Bordeaux the journey time by plane is at least two and a half hours faster with return fares about £20 lower.

If the EU is serious about encouraging railtravel as a sustainable policy for future European travel, then they need to look at the fare structures of the rail networks and low cost airlines to achieve some parity.

Fares quoted are the cheapest returns advertised by Eurostar, and the cheapest returns offered from London airports drawn from a search on www.skyscanner.net.

This comparison was made in todays Telegraph.



TRAIN
How long?

How much?
PLANE
How long?

How much?

Brussels
2hr 40m (1hr 55m*)
£69
4hr 20m (1hr 10m**)
£153 (with British Airways
from Heathrow)
Paris
3 hr (2hr 15m*)
£69
4hr 20m (1hr 10m**)
£78 (with easyJet from Luton)
Cologne
4hr 54m (4hr 9m*)
£96
4hr 30m (1hr 20m**)
£68 (with easyJet from Gatwick)
Amsterdam
5 hr (4hr 15m*)
£114
4hr 15m (1hr 5m**)
£70 with easyJet from Stansted
Tours
5hr 18m (4hr 33m*)
£89
4hr 30m (1hr 20m**)
£78 with Ryanair from Stansted
Lyon
5hr 42m (4hr 57m*)
£109
4hr 50m (1hr 40m**)
£93 easyJet from Gatwick
Marseille
6hr 16m (5hr 31m*)
£119
5hr 15m (2hr 5m**)
£78 with Ryanair from Stansted
La Rochelle
6hr 58m (6hr 13m*)
£109
4hr 30m (1hr 20m**)
£78 with Ryanair from Stansted
Geneva
7hr 13m (6hr 28m*)
£105
4hr 40m (1hr 30m**)
£68 with easyJet from
Stansted, Gatwick or Luton
Bordeaux
8hr 2m (6hr 17m*)
£109
4hr 40m (1 hr 30m**)
£77 with easyJet from Luton

Monday, 18 April 2011

India, China, Demographics, Distribution & Consumption Patterns.


The recent PATA 60th anniversary and conference event held at the China World Hotel, Beijing, threw up some interesting sessions on distribution challenges and changing demographics.

Attention was drawn to the huge process of urbanization taking place in both India and China.

Within the next 15 years, China would create cities equal to the size of most in Europe and India was planning to create 115 new airports.

This expansion will see massive increases in the numbers of Indians and Chinese willing, and able, to travel, leading to a major shift in global consumption patterns - even today the average Indian traveling in the U.K spends £792 a week compared to the average American spend in the U.K. of £710 a week.

With 70% of the Indian population under the age of 35, distribution trends will focus on increased marketing through social media and mobile access, while #trending enables industry players to have real-time feedback from consumers, shaping demand, supply, delivery, service, policy and direction.

With a predicted future shortage of skilled workers globally, there is also a real opportunity for India and China.

While in the past, the best hotel chains in India and China would hire expatriates, there will now be a reversal in this trend with the Ritz-Carlton’s and Four Seasons’ turning to India and China for their skilled management.

At the same time Boeing claimed that aviation was going to require training to support the growth in the sector with 126,000 new pilots and a quarter million mechanics need to be recruited and trained!


Friday, 11 March 2011

Monday, 7 March 2011

New Government Tourism Strategy - A rant

The new Government Tourism Strategy proposals were published last week and have been met with mass indifference all round.

The problem is it that it fails both the outbound and inbound sectors at the same time by not addressing the tax issues intrinsic in both. Instead of cutting sky-high taxes such as VAT and air passenger duties, which are putting visitors off coming here, ministers instead chose to tinker with bank holiday dates.

Ok, so they said they would move the Bank Holiday (Hurrah) and that we would see and enjoy the benefit from increased traffic due to the Olympics (Mmm, not sure about that one), but the Government's report, while acknowledging the calls for lower taxes, says that, while it will keep the matter under review, "the financial position we inherited means we must give priority to our fiscal base".

In other words, we'll keep VAT and all the other taxes just as they are!

In a nutshell, VAT, APD and TOMs have become the most pressing concerns for the industry as their high rates are making UK tourism most uncompetitive and travel more expensive.

While many European countries have actually reduced APD to encourage activity, the present Government increases it. The Government consistently fails to see the benefits to the UK economy of a buoyant overseas holiday industry and the lack of it in tourism strategy only reinforces this.

The British Hospitality ­Association report said cutting VAT on hotel rooms to 6.5%, as they have in Germany, would help create 236,000 jobs over the next five years and boost visitor numbers. Clearly, we are missing out on an opportunity to create 236,000 new jobs. Britain has just come bottom out of 133 countries for price competitiveness.

And the policy does not address the biggest problem affecting inbound tourism. If you are a company based here trying to sell the UK abroad, you suffer a huge competitive tax disadvantage.

Most visitors coming to this country from long-haul markets (such as North America or Asia) buy their holidays through tour operators. In this country, they are taxed under the Tour Operators' Margin Scheme (TOMS). TOMS is applied to the margin between the cost of the components and the price charged to the consumer.

This margin is not profit. It contains everything not directly supplied by another company. All in-house supplies and all staffing are taxed under TOMS, as are agents’ commissions, marketing, and sales costs. These expenses are the process of adding value. TOMS is thus a levy on the investment made in order to assemble, sell, and deliver visitors to the UK. For a long-haul operator, it is equivalent to a corporation tax of 800%.

If a company is based outside the EU, TOMS is not collectable and so not paid. Thus nearly all incoming operators that sell to consumers are now based off-shore.

Conversely, as this tax is on “services supplied in the EU,” all non-EU holidays sold in the UK (say, to Turkey or to Florida) are untaxed. Thus TOMS is a tax on exports and grants tax-free status to our tourism imports.

For a UK-based company, it is overwhelmingly more sensible to invest in selling non-European holidays than to try and sell a UK holiday to a visitor.

This problem is not actually to do with the level of VAT, but the way in which it is applied to exports. We desperately need to attract visitors to this country. But the process of doing so is subjected to a punitive level of taxation.

Really there should be no VAT on exports which are used abroad. Tourism is an export but the creation of holidays in the EU for visitors from outside the EU is subject to VAT under TOMS. That is different from every other type of export and it’s clearly disadvantageous to inbound tourism.

If the government is serious about encouraging more people to come here, then the Minister needs to go to Brussels and convince the other member states to reform TOMS because there is a massive disincentive on EU-based companies promoting EU-based holidays.

Government Tourism Policy 2011.pdf

Monday, 28 February 2011

Brilliant Icelandair Video

OK. Back to the frivolous. Now I've flown Icelandair many times and they are a brilliant airline - but this video for their new uniforms is barking.

My Icelandic's not up to scratch to be able to work out what they're taking about in the cabin - So if someone could translate I'd be most grateful!

..But I get the gist.

Enjoy (and sorry about the frame size..)





Tuesday, 18 January 2011

Indian Airlines Set To Expand


It looks as though India's aviation industry is set to become a major employer once again.

The President of IndiGo, Mr Aditya Ghosh, stated that the airline will be adding between 1,000 and 1,200 staff members during this calendar year. “We will be hiring close to 400-500 cabin crew and about 400-odd airport personnel,” he said. Mr Ghosh, however, refused to speculate on how many people the airline will hire when it starts inducting the 180 Airbus aircraft that it has ordered.

Similarly, SpiceJet also plans to hire 1,000 crew and 40 pilots, while Air India Express plans to hire about 700 persons. About three years ago some airlines had to prune their staff strength due to weak passenger demand and rising input costs.

The increase in activity is mainly due to the increase in number of domestic passengers flown on a monthly basis compared with the previous year. Since this trend is expected to continue over the next few years, most airlines are taking steps to capture a larger share of the market. This includes not only hiring more support staff but also utilising more aircraft in their fleets.

While IndiGo plans to acquire 180 Airbus aircraft, Jet Airways has an order book of 49 aircraft which will be a mix of both Airbus and Boeing. In July last year, SpiceJet had signed a deal with Boeing to acquire 30 Boeing 737 at an estimated value of $2.7 billion.

“From the demand side, the Indian market is well positioned for growth for the next three to five years. The air traffic demand is likely to remain strong on the back of growth in the Indian economy, high disposable incomes and rising middle class aspirations.

“A majority of the air traffic still comes from the top six to eight metro destinations and has not extended to the tier-2 and -3 cities. However, with privatisation of 35 non-metro airports that scenario should change,” Mr Kapil Arora, Partner, Ernst & Young, said.

Tuesday, 19 October 2010

airBaltic to sell TV sets in flight



Forget your Yves St Laurent and your Swiss Railway watches; airBaltic are now selling TV sets during their flights!

Latvian national airline
airBaltic will sell discounted TV-sets during the flight to its passengers. Tero Taskila, airBaltic Chief Commercial Officer said: For airBaltic it is important to find new ways of offering a better service to our customers. Selling latest Flat Screen TV-technology at aggressively discounted prices is yet another step towards airBaltic becoming a megastore for passengers who are looking for good deals –from flights, hotels to sunglasses, electronics, and even flowers for someone special. The saving of EUR 240 per TV-set compared to the retail price is worth a family holiday in selected airBaltic destinations."

The flat-screen TV-set is made available for sale exclusively on board airBaltic aircraft. Passengers make a purchase of discounted TV sets while in flight. The purchased TV-sets are shipped for free to EU Member States.

Last week airBaltic announced its plan to become the first airline in Europe to introduce iPads for inflight entertainment. airBaltic is also the world‘s first airline to introduce bouqets of roses for sale.

For the airline‘s focus on innovations and achievements in creating new trends, airBaltic last week won a special Pacesetter Award 2010 from the Jury of the Budgies World Low Cost Airline Awards.


Friday, 10 September 2010

Kulula-Air wins with the jokes.


Kulala-air.com is a low-fare 737 carrier based in South Africa. The airline started in 2001 and recently took delivery of a new 737-800 with an unusual paint scheme.

Apologies if this has already been all over the internet but this is a brilliant bit of marketing that Richard Branson would be proud of. Suddenly everyone has heard of this otherwise unknown no-frills carrier. Top marks to them.

Of course this isn't their regular livery but it is brilliantly done..

The entire plane is covered with details about the plane, including arrows pointing to the more interesting parts.

"The big cheese" describes the captain's window. An arrow points to the aircraft's registration, calling it the "Secret code."

Even the toilet is pointed out, with the description, "Loo (or mile-high initiation chamber)."

The black box, seats, stabilizer and rudder are also pointed out and include a bit of clever commentary as well.

Good stuff!

More pics:

Monday, 12 July 2010


We're always on the look-out for great marketing ideas and here's a great one from Thai Airways whose revenues have suffered due to the recent political unrest.

Their great ruse to raise additional revenues is to sell their in-flight food to people who aren't flying!!!

Their target, it seems, is the typical business traveller who has had a 'good in-flight experience' but has no time to prepare the food at home..

An example we're sure will be closely followed by BA and many other airlines!

Friday, 13 November 2009

The Spice is Right..




Congratulations to SpiceJet, the low-cost carrier for the Indian domestic market, which has just secured recognition at the World Travel Market for it's growth and multi-channel approach to distribution.

World Travel Market Chairman Fiona Jeffery presented an award to the carrier’s CEO Sanjay Aggarwal, at today’s WTM 30th Anniversary VIP Opening & Reception Ceremony.

SpiceJet currently connects 18 domestic destinations with 125 daily departures. The depth of its network provides customers a variety of options for interconnecting flights, giving them access to second tier destinations via connections at major hubs.

It has been growing recently, despite the economic pressures. SpiceJet increased its daily departures from 98 in October 2008 to 125 by May 2009. Its market has increased from 7.9% in September 2008 to 12.8% in June 2009, making it the fastest growing airline in India during this period. During the first seven months of the current year, SpiceJet’s passenger traffic has grown 14% compared to a 5% decline in the overall Indian domestic traffic.

Unlike many other low-cost airlines, it has a multi-channel approach to sales - 24% of bookings come directly from consumers booking at www.spicejet.com, 14% book through its call centers, online travel agents account for 30% with offline travel agents its largest sales channel with 32%.

It differs from other low-cost carriers by having a cargo business, which covers 13 stations. It has carried more than 19000 tones of cargo since May 2008. This side of the business currently contributes more than 3% of its total revenue.

Overall, it deserves credit for having made a profit while growing during an economic slowdown In the first three months of the year it made a profit of INR 26.3 crores (£3.6m) after two quarters of near breakeven numbers.
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