Bonza has arrived, but what does this mean for agents?
The long-awaited arrival of Australia’s only independent budget airline Bonza is over and the industry can expect to see Aussie skies painted purple.
Flights starting at $49, unserved routes, a home in the Sunshine Coast, backing from 777 Partners and aspirations of revolutionising the Australian aviation industry have been on the lips of the travel industry in anticipation of Bonza.
But this airline, which has taken such a unique approach to the aviation industry, has many asking questions, particularly, what will this mean for agents?
Selling flights
Bonza sells its flights through its Fly Bonza app and website and travel agents can book through the airline’s agent portal, but does not pay commission. The ‘app-first’ approach that Bonza has adopted is the main driver of ticket sales so far, with over 10,000 sold, the majority of which coming directly through the airline. However, Bonza tickets are not available through any OTAs.
Tim Jordan, CEO of Bonza, said that “many hundreds of agents” have signed up for the portal so far and that the airline “looks forward to working with them.”
When asked about how Bonza would entice more agents to the portal and if there were possible incentives on the horizon, Jordan replied: “We believe each travel agent runs their own business so they should set their service fees accordingly.
“We want to work with the travel agency industry and the travel market… We don’t want to interfere in terms of how they actually get remunerated. That is by a service charges, which they obviously set based on their own business, and based on the service they provide to their customers.”
Of the sales made so far, Carly Povey, Bonza’s chief commercial officer, said that there was a large amount of group bookings being made, which the budget airline would look to partner on the travel trade with.
“For the travel agents, an investment in that is a sign to say ‘we really want to partner, let’s now look at what the opportunity sits like beyond it’.”
Travel agents should also be mindful that when it comes to resolving issues for clients, Bonza has opted to use a digital help centre instead of a call centre. There is no number that agents or passengers can call for help, but there will be people at Bonza who can help with travel issues.
Jordan said the budget airline has a “digitally focused” team that can provide solutions to “any issues that they have or to get answers to any questions that they have.” This will not be operated by AI.
Flying to/from Sydney
Bonza is currently based out of the Sunshine Coast, with its Melbourne hub to begin operating soon.
The airline prides itself on serving unserved and underserved routes, with 25 of its 27 planned routes not currently operated by any other airline.
However, this doesn’t mean that Bonza is complacent with its planned setup. The new airline certainly has its eye on Sydney, but its low-cost approach and the competitive slot management at Sydney Airport means that Bonza still waits.
“From an availability service perspective, it certainly is no different to Melbourne, in the fact that Melbourne saw an opportunity – nine new routes out of Melbourne, seven of them not operated by any other airlines – there are similar opportunities in and out of Sydney undoubtedly,” Jordan said.
“However, the issue is we need a cost base which allows us to offer a stimulating marketplace and there is an issue in terms of slots in Sydney and getting access to slots at the right time of day.
“We’re quite enthusiastic about Sydney but it has to be at the right pricing.”
Jordan highlighted that the aviation industry has recently suffered some of the worst on-time performances in its history, and even at that time airlines weren’t giving up slots.
“That tells you something may be wrong with regards to the background to the slot programme and usage programme in Sydney.”
In terms of other major Aussie cities, Povey, told Travel Weekly that Bonza was looking to other prospective airports and destinations but nothing could be revealed yet.
Low low prices
Bonza flights start from $49 and the highest listed flight is $79, prompting some to question how the budget airline can keep this up.
With inflation, high fuel costs and a constantly evolving global economy in mind, Jordan was asked about how Bonza would maintain its low prices.
“Well, what we’re actually operating here is wonderful, very fuel-efficient aircraft,” Jordan said. “These (Boeing 737 Max 8’s) burn 15 to 20 per cent less fuel than other midsize jets which are flying around Australia. That gives us a fantastic advantage.
“The fact that we’re flying so many seats on a low-frequency basis should keep costs down.”
Jordan said Bonza has “utmost confidence” of being able to offer these fares on a long-term basis.
As is the case with other budget airlines, Bonza charges for checked baggage, food on board and selected seats.
Check out Bonza’s current routes and pricing below:
For information about the experience of flying with Bonza and the new approach the airline has taken, check out our review of the airline’s first-ever flight.
Featured Image: Bonza’s Boeing 737 Max 8 (Supplied)
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