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Summer Thoughts …

August 10th, 2009

tobiasBob Mowat

 

Now is the summer of our discontent … yada yada yada … so eight months into 2009 and it’s still not clear just where things are going … every time you ask someone for their predictions on what’s to come for the remainder of 2009, it’s prefaced by a comment that goes something like “my crystal ball is a little foggy these days” or “if I’d been psychic, I wouldn’t be in the mess I’m in now.”

 

Nope, 2009 is a cipher and I think the best that can be said is that we’ll all be a lot happier when it’s behind us. Whether better things are ahead in 2010 is anybody’s guess, but by all accounts that I’m getting travel trade types are much more positive about the coming year and beyond than they are right now.

 

Of course, to get there, we have to make our way through the fall which promises to be “fraught with peril.” Things like H1N1; whether or not Mexico will retaliate against Canada’s imposition of visas for Mexican visitors here; the economy and consumer confidence; the possibilities of a federal election; and a host of other seen and unseen perils that seem to be shoving a stick through all of our bicycle tires.

 

 

For myself, I’m more and more convinced that Doris Day was right when she sang: “Que sera, sera.” After the first eight months of this year, I’m convinced “ Whatever will be, will definitely be.

 

Stay tuned, there”s always more.

Just take it and enjoy the ride

June 11th, 2009

yyz-planeBob Mowat

 

What’s passed is past and what’s to come, well that’s anybody’s guess. So when airlines decide to pay travel agents a commission (however, small or large), agents would be wise to take it and enjoy the ride.

 

Now, I have a confession. It has to do with appliances. I believe that when you go out and buy a good refrigerator, stove, microwave, dishwasher, etc., those appliances should last – forever!

 

Unfortunately, I’m discovering that such is not the case. Appliances are, apparently, built to break down. I can’t comprehend this. While I don’t have any proof of a conspiracy, my thoughts are leading me in that direction.

 

Why, you may well ask are my thoughts are headed in that direction? Well it’s because I’ve discovered that when one appliance breaks down, the likelihood that another appliance (in a similar price range – generally, expensive) will break down increases exponentially.

 

So what does this have to do with anything, aside from the fact that I get to tell you that my 15 year-old dishwasher is falling apart piece by piece – 15 years, I mean, I’m a lot older and I can still wash dishes and I don’t make an annoying hum.

 

Hum or no hum, sadly I have to report that appliances do breakdown and you have to replace them. I’m doing that. I’m – get ready – adapting to a new reality – a new, if you’d prefer, normal.

 

Which brings me to my point — travel agents are good at adapting. Those of you out there today are there because you have adapted. So adapt a little more. Forget about what’s in the past.

 

Don’t worry about how long it’s going to last – just don’t plan your business around it – and sell those commissionable airfares. When the ‘good’ times return, those commissions may be gone, but like getting into the stock market early, you’ll have reaped some gains and be gone when things start to go south.

A Collective Sigh of Relief

May 13th, 2009

Bob Mowat

 

I’m not sure whether it is a case of burn out or the fact that we’re fast approaching the Victoria Day Weekend here in Canada (in the US, it’s the Memorial Day Weekend titalian-village-at-beaches-turks-caicos-april-09hat arrives simultaneously), but I seem to be detecting a collective sigh of relief here in the industry.

 

There will still be fall out from the collapse and resulting bankruptcy of Conquest Vacations, I’m sure. Influenza A H1N1 is still apparently circulating around the globe, but the initial fears of an event rivaling 1918 seem to be dissipating. The temper of the people I’m talking to seems to have returned to that of the first quarter of this year when expectations were muted and everyone seem prepared to simply do anything they could to weather the storm.

 

While I wouldn’t say it is all good, Canada’s travel industry seems to have reached a state of equilibrium– not that of the good times, but still better than it has been since about the middle of April.

 

So with that said, I’m about to disappear for the long weekend to enjoy the sunny skies and warm breezes of Turks & Caicos and take part in the official grand opening of the Italian Village at Beaches Turks & Caicos.

 

Sandals Resorts always throws a good party, so do me a favour and keep the noise down on Tuesday.

 

Stay tuned, there will be lots more from Beaches Turks & Caicos in upcoming issues of Press Today, Canadian Travel Press and Travel Courier in the next few weeks.

 

A brave new vision — NOT!

May 5th, 2009

ac-logoBob Mowat

 

I’m gob-smacked.

I’m sure that the rest of the travel industry in Canada must be as well.

After all of the years of trying to figure out how to fix the airline industry, the Canadian Auto Workers (CAW) union has come up with a sure-fired plan to, in their own words, “preserve our national carrier that links our communities.”

And the solution – drum roll, please – is for the government to take an ownership stake in Air Canada and, wait for it now, “re-establish smart regulations on airline capacity.”

Now let me see, I seem to remember – way back in the 1980s – that Air Canada was actually owned by the Canadian government. They got rid of it because not only was it a costly enterprise, but the market place demanded a loosening of air travel regulations in order to allow for free and open competition that would bring prices down — something that consumers really wanted.

They also got out of the airfare regulation business because the market was moving so fast, they simply couldn’t keep up.

 

And I fail to see how anything has changed. But I am chuckling at the CAW’s idea that the government, in its efforts to “re-establish smart regulations on airline capacity” – don’t you just love that line – would be able to come up with “fair rules” that would “ensure a stable, reasonable growth of capacity.”

The argument that other governments have an ownership stake in their “national” airlines is kind of like hearing your mother say: “Well, just because Johnny Johnson ate a toad doesn’t mean you have to eat one too.”

Conveniently forgotten in the CAW’s five-point plan is the fact that the federal government generates a lot of revenue from AC – not to mention all the other carriers operating in Canada — through a whole range of taxes and fees, that add to its operating costs and make it more difficult to give consumers what they want.

Perhaps, just perhaps, they might want to suggest that the federal government think about revamping and even removing some of those taxes and fees – it would certainly make everyone’s life a little less costly. And considering the economic times we’re living in, it just might do something to stimulate the marketplace – a novel thought, eh.

 

So to sum up, just because you can drive a car, doesn’t mean you can fly a plane – hopefully, there won’t be anymore on this – ever.

 

You can find the CAW’s five-point plan at http://www.caw.ca/ – so check it out.

 

 

Conquest: Industry needs to tell the story

April 22nd, 2009

conquest-commentBob Mowat

 

Alright, it’s time for the travel industry in Ontario to speak out and set the record straight on the closing of Conquest Vacations. You’ve been poked with a stick long enough, now it’s time to bite back.

 

Come on ACTA. Come on CATO. Come on CITC. Come on travel agency consortiums. Come on tour companies – large, medium and small. Come on independent agents, online retailers and industry veterans.

 

 

Tell the story that needs to be told: consumers in Ontario are well-protected by the province’s compensation fund – in fact, as one of only three provinces in Canada to have this type of fund, Ontario travellers are better protected than the majority of Canadians.

 

Tell the story that the provincial compensation fund was originally established at the urging of the industry; that it is travel agents and tour operators who fund the Fund. Tell whoever will listen that it is part of the industry’s commitment to protecting their customers. 

 

Tell the story of how well consumers are protected by the Travel Industry Council of Ontario (TICO) which, I should point out, has introduced more stringent reporting and financial requirements over the years under the guidance of Michael Pepper.

 

Tell the media and government that the industry has been shocked and appalled by the actions of the hoteliers who demanded that Conquest passengers pay them the money they were owed from Conquest before they were allowed to leave and return home. And if there’s a way to prevent this happening in future, show them how it can be done.

 

Tell government, tell media, tell consumers that as a group you speak for the majority of travel professionals in the province and then, as leaders in your industry, tell them what changes could help TICO do its job more effectively.

 

I’m not even going to speculate on what those suggestions would be – I’ll leave that to the experts – but I don’t think it would be unfair to suggest that the leaders in our industry should make it abundantly clear that TICO works and that it has been a positive force in the industry since it was established.

 

You might also want to point out that TICO can’t do everything. That nationally, the state of consumer protection for Canadian travellers is a patchwork quilt that is filled with a lot of holes and as a result, there are a number of areas that TICO simply has no control over and no mandate to deal with.

 

Now get out there and tell the story.

 

Tough times, practical advice

April 13th, 2009

Bob Mowat

 

Okay, okay, the rule is that when you’re blogging you shouldn’t be blatantly commercial. Well, I’m going to add a footnote to that rule and suggest that if the commercial stuff you’re going to be talking about is really good, then it’s alright.

Which brings me to Travel Law 2009 – it’s happening on April 23 at the Ted Rogers School of Management at Ryerson University and it’s a full day of information, education, food and lots of networking.

I mean I think it’s important to know that the ceiling on claims in Small Claims Court in Ontario is going up on Jan. 1, 2010. We’re not talking chump change here — it’s going up to $25,000.

Plus Tim Law — who along with Paul Younger will be handling this session — always offers a combination of good information and witty turns of phrase – a complicated way of saying he’ll educate you, but make you laugh while he’s doing it.

Lillian Thomsen and Gar Pardy will be there to talk about Canadians travelling out side the country and some of the perils that they might run into and what to do if they should run into problems.

Plus the last two sessions take a long hard look at bankruptcy or options to bankruptcy. It is certainly a timely topic considering the tough times that all businesses are facing these days.

So what else can I say – mark your calendar for April 23 – and go to http://www.travellaw.ca and register – do it today, you won’t be sorry you did.

 

 

Two rights and a wrong

March 26th, 2009

Bob Mowat

Bob Mowat

Alright, so when I initially started writing this, I was just going to tell you that we’ve got some new blogging software that we’re going to be using for the Travelpress.com blog from now on.

And I’d also tell you that it gets us up to speed with what’s going on in the blogosphere, provides some enhancements or functionality that everyone expects when they go to a blog.

I was planning to sign off, wittily, with something like — be gentle with me, it’s my first blog, but then I ran across the story about Joel Borsteinas, a BC sales rep selling US products in Canada who was turned back at the US border because according to the US Customs and Border officer he was taking jobs away from Americans.

Borsteinas was headed to a trade show in Oregon. He was travelling. He was planning on spending money in the US, stimulating the country’s travel economy. All of this is something that at last glance, the US Travel Association and others in the US travel industry were heavily promoting.

Clearly, the customs agent that Borsteinas had to deal with wasn’t in the loop. Travel is good. It generates economic activity. If somebody was to travel to the US and put money into that industry, you’d think you’d want to do everything possible to help him or her do it.

And what about protectionism? Haven’t the G-8 and the G-20 been talking about how important it is to the economic recovery efforts to keep borders open; to keep goods and services flowing freely between countries in order to stimulate trade.

That seems to be what Borsteinas was trying to do. Go to a trade show. Meet people. Come back to Canada and sell their US products here. As he rightly points out that’s actually a good thing for Americans  — it gives them work.

So my suggestion would be that perhaps the powers that be at US Customs and Border Services have a chat with the people who are on the front lines and let them know that people like Borsteinas are actually the good guys in this scenario.

So that’s my two cents. New blogging software for Travelpress.com’s blog – that’s good. Mr. Borsteinas — a good guy. US Customs and Border Services – apologize to Borsteinas and try to get it right the next time.

If you want to see the full story, go to http://www.cbc.ca/canada/british-columbia/story/2009/03/16/bc-borderprotectionism.html

 

 

Here’s my 2 cents on St. Pete’s

March 12th, 2009

Bob Mowat

Thursday, March 12, 2009

 

st-petes-clearwater2 It has been interesting to see the reaction of the Canadian travel trade to the recent announcement by Pinellas County that it’s planning to shut the St. Pete’s/Clearwater CVB office here in Canada. They’ll be voting on the matter during their meeting on March 17.

The arguments (and it’s pretty much unanimous) for keeping the office open come straight to the point:

 

!!! Kimberly Hartley is not only well-liked and well-respected by the trade here, but she’s also done a darned good job over the past decade keeping the destination top of mind.

!!! By closing the office, there’s a danger that agents and consumers will find new destinations to sell or go to – i.e. business will simply pass St. Pete’s by.

!!! The office has provided excellent support for agents.

!!! Not only has it given the destination a high profile in the Canadian market, it has also helped generate new business for St. Pete’s/Clearwater.

 

So let me add my two cents worth.

While shutting down an office may look good as a line item on a budget, what it doesn’t tell you is how such a decision impacts on the marketplace.

There is the old cliche — Out of sight, out of mind – that I think applies to situations like this.

Yes, I agree that the current economic mess we’re in is something that we’ve never experienced before in our lifetimes. And it’s scary.

However, I would be remiss if I didn’t point out that Canada is not the United States. I think that it’s important to note that the impact of the so called ‘Great Recession’ is different here than it is in the US.

And by all accounts, Canadians are continuing to travel.

While they may be watching their vacation budget more closely or buying down when they travel, they’re still going.

In fact, when I was at my son’s hockey game this week, a number of the parents were concerned with the fact that games had been scheduled for the March Break week – March 16 to March 20 – and many of the teams were going to be quite short of players. My son’s team, for example, had five (5) of its players headed off on vacation for the week.

While that’s anecdotal, my point is that there is still business out there to be had. Canadians are concerned, but they are adapting their plans to suit the present economic environment – and I truly believe that those plans include travel.

And based on my experience — whether in good times or bad times —  it’s the destinations and the travel companies that have a presence in Canada (or any market for that matter) and that have developed a relationship with the agents and operators here that generally get the business.

Think about it. We are in an industry that’s always been about personal relationships.

That’s my take – let me know what you think.

Oh and if you want to let the powers that be in Pinellas County know what you think, you can contact Calvin Harris, commission chairman for the Pinellas County Board of County Commissioners by e-mail at CHarris@pinellascounty.org .

 

 

Fighting back in a “climate of fear”

March 11th, 2009

climate-of-fear-imageBob Mowat

Wednesday, March 11, 2009

I think one of the things that I’ve found particularly galling about the “global financial meltdown” is that the foolishness of the few has resulted in the suffering of the many.

Consider the temper of the times in Washington, DC where the few – the politicians and media – have made it essentially politically incorrect to hold a meeting these days.

Those politicians may not have intended this result, but in staking out their political turf to go on record to say that any of the financial institutions receiving US government bailout money shouldn’t be holding lavish meetings – which is as it should be – they’ve also made companies that didn’t get a bailout, re-think plans for meetings in the coming year.

Not surprisingly, the US Travel Association is steamed about this state of affairs and is fighting back with its “Meetings Mean Business” campaign – check out the details at http://www.meetingsmeanbusiness.com.

Roger Dow, president and CEO of the U.S. Travel Association, says of the present situation:

“Make no mistake, companies that have received taxpayer assistance must be held to a different standard and conduct their business in a transparent and responsible manner. But the pendulum has swung too far. The climate of fear is causing a historic pullback of business meetings and events, with a devastating impact on small businesses, American workers and communities.”

Dow points to a recent survey that shows that over 20% of companies — that have not received taxpayer assistance — have cancelled events due to recent media and political attention. More than half (52%) claim the news coverage has been extremely or moderately influential on their companies’ decisions to hold events.

The US Travel Association’s boss says that meetings and events are responsible for nearly 15% of all travel in the United States and create $101 billion in spending, one million jobs and nearly $16 billion in tax revenue at the federal, state and local level.

And he notes that without the jobs generated by travel for meetings and events, the unemployment rate in the United States would jump from 7.6% to 8.2%.

The US Travel Association’s partners in the “Meetings Mean Business” campaign include the American Hotel and Lodging Association, Destination Marketing Association International, International Association of Exhibitions and Events, Meetings Professional International, National Business Travel Association, Professional Convention and Management Association and SITE (formerly the Society of Incentive Travel Executives).

Seems to me that the whole point of all this economic stimulating that’s going on is to get people to keep doing business, to continue to move forward and to get the economy going again.

That’s my take, and hopefully the politicians in Washington will get the message.

 

I have a plan to stimulate the economy

March 9th, 2009

Bob Mowat

 

Monday, March 9, 2009

 bob-survival-plan-photo

I’ve been thinking about this for a while now and I believe I’ve stumbled upon a plan that will help this country’s travel and tourism industry not just weather the economic storm that’s currently battering us here in Canada, but actually allow it to thrive in these tough times.

No, no, no applause is needed. I’m doing this solely for the good of the industry.

What I’m suggesting is that instead of the government giving money to banks to help free up the credit markets that money should actually be given to consumers so they can pay off all of their debts – mortgages, lines of credit, credit card balances, car loans, you name it, and it would be paid off.

Think about it, the banks would get the money they need, they’d just get it from you and me and every other Canadian taxpayer with debts to pay, rather than from the federal government.

At the end of the process, the government would have stimulated the economy, the banks wouldn’t have to worry about their exposure to defaults – at least not from consumers here in Canada — and consumers would be jumping for joy because they wouldn’t have all that nasty debt hanging over their heads.

And tough times or not, with no money owing and with all those great travel bargains already out there in the marketplace, I suspect that many Canadians would be heading off on a vacation pretty quickly to celebrate their new found financial health. They’d probably even pay cash for the trip!

Okay, I admit that this is simplistic. But aren’t we in a situation that calls for some wacky, ‘outside-the-box’ thinking – simplistic, crazy or otherwise.

The money the federal government is spending and is going to be spending for its stimulus plan is tax money – yours and mine – so why not give it back to the people who really need it, not to mention, who gave it to Ottawa in the first place.

I mean if you’re living in fear about losing your job, having your debts cleared before you get your pink slip may not save your job, but it will definitely help reduce some of the stress you’re feeling.

Besides the federal government and many provincial governments are already making it pretty clear that they’ll be running deficit budgets for the next little while and we all know that it’s us, Canadians, who are going to be paying for those deficits eventually. 
Now I don’t know about you, but I for one know that I’d feel much better about that if I knew I’d be financially unencumbered when governments started raising my taxes to pay off those debts.

Anyway, I’m just thinking out loud here – so let me know what you think.