Helloworld overhaul under new CEO Burnes

Helloworld CEO designate Andrew Burnes has outlined plans for franchisees to become shareholders in the new year, along with changes to streamline commissions and extend store opening hours.

Following the announcement that AOT Group will merge with Helloworld with Burnes at the helm, he addressed the Helloworld Owner Managers Summit in Wellington over the weekend.

Burnes reassured the owners and managers that he is “critically aware” of the challenges in the travel distribution business.

“Despite the oracles and the pundits and the doomsayers, the retail travel distribution industry in Australia adds real value to the customer experience and it will remain alive and well as long as it continues to do so.”

Australia was also “blessed by the tyranny of distance” which made agents indispensable to travellers.

There was a brief nod to the past, but it was all about the future for the CEO to be.

Franchisees will be invited to take a stake in Helloworld Limited with plans to be announced before the end of January.

“Very few of you in the room are actually shareholders in the business,” Burnes said.

Commission earnings will become consistent across the three channels of in-store, phone and online.“Our job is to put cash in your tills.”

“It is not our job at Helloworld to take the bookings from your customers, it’s our job to send you those customers whether they are walking through the door, calling you on the phone or booking online.”

Stores, however, need to be open later and more frequently, he said.

“We need to work more closely with you to facilitate IR solutions that will enable you to open longer and on more days at a reasonable cost, better after hours solutions and online solutions.”

Burnes acknowledged fierce price competition from Flight Centre.

“They have taken ownership in consumers’ minds of the fact that they can and will provide the lowest airfare guaranteed.”

Helloworld’s competitive advantage needs to be its high service proposition, Burnes said.

“It’s what comes after you land that makes up 99% of the experience and this is our strong point,” Burnes said.

There’s room for growth however, with the agency’s service proposition not yet cemented for Australian consumers.

“Therein lays a wonderful opportunity for Helloworld,” Burnes said.

Next year further announcements will be made on upping customer service across the network.

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