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Adventure Travel Division. Simon Tobin17 September 2004. The World of Adventure Travel. Small group exploration All continents / 107 countries / 400 trips Responsible Tourism. The Market in UK. UK Worldwide Group Travel – Cultural, Activity & Adventure. Explore. Exodus. - PowerPoint PPT Presentation
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Adventure Travel DivisionAdventure Travel Division
Simon TobinSimon Tobin 17 September 200417 September 2004
The World of Adventure Travel
• Small group exploration
• All continents / 107 countries / 400 trips
• Responsible Tourism
The Market in UK
UK Worldwide Group Travel – Cultural, Activity & Adventure
Adventure Small Groups
(60,000*)
*ATOL Licenses – 01/09/03
Walking Activity Special Interest
Individuals & Groups Self Guided
(61,200*)
Worldwide Group Travel Cultural
& Comfort
(158 500*)
ExploreExodus
BalesCox & Kings
Noble CaledoniaVJV
Travel CollectionTravelsphere
The Adventure CompanyJourney Latin America
Guerba / Dragmoman / ImTrav
Discover the WorldHeadwaterInntravelHF HolidaysATGWaymark
Ramblers
Customer Profiles
• Grown up back packers
• Late starters
• First steppers
• Action men & women
• Serial Explorers
• Average age 46 … 55% female
The Business Model
• Small group packages• Land costs & Tour Leader & Air & Misc• Pricing = VFM• Gross margin 30%• Net margins 9%• Yield management drives profitability• Currency bought forward
Distribution
87% UK / IRL = EXUK
Flight inclusive
13% International GSA’s
= Land only
USA CAN AUS NZ
Customer Services
•Sales & Reservations
•Support
•Flights/Tix
•CR
Organisation & Structure
Explore
Marketing
•Comms
•Services
•Distribution
•Internet
IT
•Network
•Systems and Development
Finance & Admin
•Financial
•Legal
•HR
Operations
•Product Development
•Overseas Ops
•Aviation
•120 Permanent Staff
•140 Tour Leaders & Local Leaders
Divisional Board
Simon Tobin (4)Mangaging Director (Sales & Marketing)
Ashley Toft (9)Customer Services
Director
Nick Anstead (10)Product
Development & Ops Director
Andreas Elia (7)General
Manager, RegalDive
Mike Tyler (3)Finance Director(Finance/IT/HR)
Derek Moore (24)Aviation Director
RegalDive - Product
• Red Sea Package Holidays– Diving, Liveaboards & Sun
• Worldwide Diving– Tailor made – to Caribbean, Maldives,
Indonesia, South Africa etc
• Special Groups & Flights Only
RegalDive - Business Model
• 80% Red Sea Charter 7 / 14 day rotations
• 15% Worldwide
• 5% Seat only / miscellaneous
• Conventional Tour Operator Financial Model– 20% Gross margins. 5% Net margins– Load factors / Fixed cost commitment
RegalDive - Organisation & Distribution
• Based in Cambridgeshire
• Technical Dive & overseas expertise
• Lean cost / overhead structure
• Direct sales 70%
• Agency / Specialist Dive 30%
Getting Through Difficult Times
• External factors post 9 / 11– SARS, Bali, Afghanistan, Iraq Wars, Kenya, Morocco
& etc
– Continue product development
• Improve & Change & Develop internal systems– Flexibility in air
– Internet & on-line capability
– Streamline business processes
• Clarify brand strategy
The Explore Rebrand Experience
• Rationalise brand hierarchy
• Master brand allows for segmentation
• Multi channel application
• Refresh and add style / design to enhance values and communication
Financial Performance Since 9 / 11
Turnover - Years 2001-2004
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
00/01 01/02 02/03 03/04
Tu
rno
ver
£'00
0
+14% 31.0m
32.6m 33.3m
(as at 7/9/04)
Financial Performance Since 9 / 11
PBIT for Financial Years 2001-2003*
0
500
1,000
1,500
2,000
2,500
3,000
00/01 01/02 02/03 03/04
PB
IT £
'000
3.4m2.4m
1.9m
*Before goodwill, impairment and exceptional costs
Financial Targets
• Strong top line sales growth
• Margins steady at 30% +
• Net margins in line with 2004
• 2005 sales currently 45% ahead – but Q4 (35% of annual total) bookings yet to start
Organisational Developments
• On-line booking launches
• Extend Web community development
• IT systems development plans for handling multi flight options
• Explore / RegalDive – air ticket synergies
• RegalDive goes on line
Strategic Challenges
• Operating in a changing world
• Aviation issues
• Competitive activity / Tour operating changing
• New markets – new channels
The Geo-Political Map
• Fundamentalism – Terrorism – Anti-Western
• Political instability – e.g. Bolivia, Katmandu
• New destinations vs conservation & Responsible Tourism
• Customer perception – FCO advice / media
• US / Allied Foreign Policy
Aviation
• Consolidation of Flight Carriers / Alliances
• Yield Management, allocation models
• Short haul / Low cost
• Fuel prices
• Air travel safety issues
New Markets / New Channels
• New customers – matching expectation– Plans for multi channel growth– New media / Rich media– 3 party alliances e.g. British Museum, National
Trust– Replace established above line with internet /
Web– Extend specialist agency links
Adventure Travel Division – The Future
• Increased appetite for adventure travel
• Geopolitical risks but a huge range of destinations and travellers will adapt
• Market leadership and loyal customer base
• Successful product and brand development programmes
• Continuing opportunities for profitable growth