Tuesday, December 9, 2008

Worlds worst business decisions

I can remember back to the good old days when the motel's phone system used to be a profit centre - those days a long gone!

I have been analysing our telecommunication services and costs and came across the following video gem that made me pause and laugh.

Watch it all the way through as it just gets better!


Air NZ buys stake in Online Tourism Specialists

Air NZ is wanting to play a bigger part in New Zealand's tourism industry by adding yet another distribution channel option.

Has this venture got wings, or will it get lost in the scrum of existing providers?

Should be interesting to watch...

9 December 2008

Press Release: Air NZ

Air New Zealand announced today that it had acquired a cornerstone shareholding in Australian online tourism specialists V3 (Vcubed Pty Ltd).

Air New Zealand Deputy Chief Executive Officer Norm Thompson said the acquisition was part of the airline’s strategy to further diversify into the wider tourism sector.

V3 provides its open booking exchange (OBX™) technology for tourism suppliers and distributors in Australia, and Mr Thompson said Air New Zealand and V3, through a joint venture, would establish a similar tourism exchange in New Zealand.

The OBX™ is available to all tourism and travel operators and distributors and will be run in New Zealand as a standalone business, independent of Air New Zealand.

It works by allowing distributors to access live book-able inventory from tourism operators in a real-time marketplace, and has exciting potential for New Zealand tourism operators.

Mr Thompson said a New Zealand exchange would help local tourism businesses by providing them with a cost-effective way of increasing their reach to distributors.

“For example, it will allow a local hotel operator to offer accommodation directly to a multitude of online retailers,” he said.

Air New Zealand’s commitment to playing a role in the wider tourism industry was behind its decision to acquire a stake in V3 and establish an exchange in New Zealand, he said.

“Air New Zealand’s fortunes are inextricably linked with that of our tourism sector. What’s good for tourism in New Zealand and our tourism operators will have natural flow-on benefits for the airline.”

Having enjoyed outstanding success in the Australian market, V3 Chief Executive Officer Shane Crockett said: “We are extremely pleased to have Air New Zealand as a cornerstone investor and strategic partner for this breakthrough initiative in digital marketing for both the Australian and New Zealand tourism industries.

“Air New Zealand is the perfect strategic partner for V3 to optimise the potential of the open booking exchange technology.

“Leading the market with the unique exchange model in Australia, V3 has already seen many of the tourism industry’s key suppliers, distributors and government organisations using the open booking exchange technology and now, our partnership with Air New Zealand will extend this successful model into the New Zealand market.”

Mr Thompson said former Air New Zealand General Manager Chris Hunter had been appointed Chief Executive Officer of the new business that would offer a similar tourism exchange service in New Zealand.

Mr Hunter has long been involved in the tourism and travel business, holding a number of senior positions, most recently as General Manager Strategy and Planning for Flight Centre New Zealand. During his 21 years at Air New Zealand he held a range of positions including General Manager Global Direct Sales.

Mr Hunter said he was excited by the opportunity to positively contribute to the ongoing growth and success of the New Zealand tourism industry, and expects to make further announcements to the industry in the first half of next year as the new exchange takes shape.

http://www.scoop.co.nz/stories/BU0812/S00207.htm

Forget romance – Kiwis prefer a holiday in 2009

9 December 2008
Press Release: Expedia

Expedia survey reveals Kiwis look forward to taking a holiday more than anything – even a new romance

According to a recent poll, Kiwis look forward to taking a holiday seven times more than the prospect of a new romance in 2009.

The survey, conducted by Expedia.co.nz, operated by Expedia, Inc., the world’s leading online travel company, found that over half of New Zealanders said going away on holiday was the thing they looked most forward to during the year, well ahead even of a pay rise or job promotion (13%). And with more than half of New Zealanders saying they are planning a holiday next year, we are not planning on sitting around at home waiting for Cupid to visit.

When asked why going away on holiday was so important, Kiwis appeared to be suffering from end-of-year exhaustion, with more than 40% of the survey’s over 500 respondents saying their ideal holiday would be ‘total relaxation’ – well ahead of it being an opportunity to spend more time with family (24%) or learn about other cultures (19%). It was also shown that the daily grind was what most Kiwis seek relief from in a holiday, with over 56% citing an ‘escape from routine’ as the main motivation for going away on holiday, well ahead of having a break from work (38%) or taking a break from social and family commitments (6%). Two to three weeks were what most Kiwis said would constitute ‘a real holiday’ (31%).

Less than half the respondents (44%) said they would be travelling away on holiday this summer, with 80% of those saying they would be holidaying in New Zealand, followed by around 15% further afield within Asia Pacific.

Almost a third of those not going away on holiday this summer cited the economic downturn and need to reduce debt as the main reasons for staying put. That said, three-quarters of all respondents (74%), regardless of whether they were staying at home or going away agreed that a holiday was more relaxing than staying at home.

"While the Christmas holiday season is one of the busiest and most expensive times of year to travel, there are many ways to enjoy a holiday away without breaking the bank,” said Louise Hurbert-Burns at Expedia® New Zealand. “With the internet, it is now easier and quicker than ever to search for the best deals and book a holiday or short break away.

“With many airline seats going empty due to the economic downturn, airline competition is stiff to try and fill those seats, and together with falling international oil prices, there could well be compelling last-minute airfare deals this holiday season. So, if travel plans are flexible, travellers may find extraordinary bargains by letting the deal actually determine their destination.

“Travellers could also consider booking all their travel – like flights, hotel accommodation and car hire – together as a single package. With Expedia’s technology, travellers can create their own package by combining all their travel needs with one single price tag. In most cases, doing so will deliver an additional saving compared to booking the items separately, which they can see instantly when booking,” Ms Hurbert-Burns concluded.

For excellent travel deals and a great travel experience, visit www.expedia.co.nz.

http://www.scoop.co.nz/stories/print.html?path=BU0812/S00211.htm

Trial period is pro-worker

The introduction of a 90-day trial period for new employees by agreement between the employer and the employee, is the most positive employment legislation for many years.

The motel and tourism industries rely on a flexible workforce and the ability to increase or reduce staff numbers according to demand.

Business NZ Chief Executive Phil O’Reilly recognises the benefits of the legislation to small businesses ...



The incoming Government shows it has listened to the key problems facing small businesses in moving with urgency on a 90-day trial period, says Business NZ.
Business NZ Chief Executive Phil O’Reilly says it is a policy used by just about every other developed country in the world - many with longer trial periods – and is an accepted part of their industrial relations framework.

He says the government’s decision to progress the matter under urgency is not unreasonable since there was already an extensive select committee process for the Wayne Mapp bill, with more than 600 submissions considered.

“We would not normally support urgency for new legislation, however in this case the policy has been well developed over a period of time and well flagged in advance of the election.

“This policy does not remove any of the human rights protections for employees under law.
“Most important, we are facing an economic downturn when jobs are most at risk and small businesses are least likely to hire.

“It is a pro-worker policy. The least skilled, most marginal employees - currently most at risk of not gaining jobs - will get the most benefit from it.

“The decision to make the policy take effect from April next year is also a reasonable one, allowing time to upskill employers in relation to the change. The Business NZ family – EMA Northern, EMA Central, Canterbury Employers’ Chamber of Commerce and the Otago Southland Employers Association – will assist in getting information out to employers.”

http://www.scoop.co.nz/stories/BU0812/S00198.htm

Monday, December 8, 2008

Strategy sought for tourism firms

Tim Cossar, head of Tourism Industry Association (TIA) will give the first official briefing to the Ministry of Tourism this week.

With the background of global recession, Cossar will be demanding up to 38% more public funding for Tourism .

It will be interesting how John Key via Associate Tourism Minister Jonathan Coleman will deliver Cossar a dose of economic reality.

December 08, 2008
New Zealand Herald
By Tamsyn Parker


The Government will meet tourism industry representatives this week to assess the impact of the global recession on tourism and work out a strategy on how best to help struggling New Zealand businesses.
The Ministry of Tourism and the Tourism Industry Association are to give their first official briefings to Associate Tourism Minister Jonathan Coleman on Thursday.

Prime Minister John Key, the Tourism Minister, is not expected to attend the meeting.

Coleman, who also stood in for Key at last week's in-bound tour operators meeting, said the briefing was designed to try to predict the effects of the recession and learn what the industry saw as priorities for helping the sector.

"From this [we] hope to come up with a common view on what is likely to happen as a result of the current economic situation. "This will be important for the Government. If we need to take short-term action to help various sectors, it is much easier if we know that there is general agreement on what needs to be done," he said.

Coleman said these were difficult times in the world's economy and as discretionary spending tightened for individuals, inbound tourism operators may feel vulnerable.

Association head Tim Cossar told the Herald last week the Government wanted the industry to come up with solutions rather than just presenting the problems.

Cossar said the biggest worry was that New Zealand would lose its market share of tourism visitors."New Zealand tourism operators do not want to see New Zealand lose share of market voice overseas. It's critical that we don't." Of particular concern were the UK and US markets, New Zealand's second and third largest tourism markets.

Cossar said Australia, our largest tourism market, would be the key to keeping business ticking over in the next one to two years. "We have really got to make [Australia] work for us in the next one to two years. We just can't afford to be behind the eight-ball."

Cossar also called for the promotion of domestic tourism to be ramped up.

Central government presently does not give any money to regions to promote themselves within New Zealand. Regions must rely on local ratepayers and councils to fund their marketing.

He hoped a further $20 million to $30 million would be added to the tourism marketing budget of Tourism New Zealand, which currently spends $79 million a year.

The forecasts are unlikely to bring good news for the new Government.

In July the Ministry of Tourism released its annual growth predictions for the next seven years.
It had expected growth of 1.2 per cent in visitor numbers for this year and an average of 3.3 per cent growth for the next seven years.

But Statistics New Zealand figures show for the year to October visitor numbers are already down 0.2 per cent.

The United Nations World Tourism Organisation is predicting growth will be between zero and 2 per cent next year, down from recent averages of 6 per cent per year.

Tourism is a major contributor to New Zealand's economy, with visitors spending around $20 billion a year in New Zealand.

http://www.nzherald.co.nz/politics/news/article.cfm?c_id=280&objectid=10546918

Online bookings break the $1million mark

I still get a thrill from opening up my email and finding a confirmed on-line reservation notification.

From a perfectly formed email I have the guest name, address, phone number, room type, in/out dates, tariff....and their credit card number!

8 December 2008,
Press Release: Jasons Travel Media


Jasons Travel Media commission-free online bookings break the $1million mark

The month of November saw the commission-free online bookings on Jasons websites soar over a million dollars.

The Jasons commission-free booking websites are comprised of Jasons, Holiday Guide and MANZ (Motel Association of NZ).

Jasons purchased Holiday Guide in June 2007 and the online booking facility went live in on Jasons.com mid February of this year. In that short time the three Jasons websites have delivered over $10.6 million of commission-free accommodation sales to accommodation providers.

Over 39,900 individual commission-free online transactions have been made, saving them over $1 million in commission payments (based on an average of 10% charged by some online booking engines). The uptake of operators utilising the booking engine has grown a spectacular 79%.

Jasons.com allows travellers flexibility in communicating with the operator– they can choose to use the booking function for immediate confirmation or they are able to contact the operator by sending an enquiry form or by looking up the phone number.

Matthew Mayne, recently appointed CEO of Jasons Travel Media Ltd says” Jasons has chosen to charge a low-cost flat fee for online travel bookings which means transaction costs for the operator are free. It allows the operators to put their best price forward without having to factor in commissions.”

“Jasons is now taking the next logical step by introducing online bookings for the activity sector, due to go live during December,” says Matthew. “We are confident that the activity operators will be pleased to be a part of the commission-free booking environment as it will be a refreshing change for them.”

Jasons Travel Media Limited is a public company, listed on the NZAX board of the New Zealand stock exchange. It publishes the websites www.jasons.com, www.holidayguide.co.nz, www.dutymotel.co.nz and www.roomsearch.co.nz; and 68 different free printed travel guides annually, covering New Zealand, Australia and the South Pacific.

Friday, December 5, 2008

DAVID BELLAMY: "Global warming is nonsense"

"BANNED by the BBC, ignored by his peers and ridiculed by the alarmist green lobby, David Bellamy has launched his own bold crusade to say the unsayable - global warming is nonsense.
Recently the Daily Express published a short interview with David Bellamy, the renowned botanist. It was his first in several years. In it he controversially – and persuasively – crushed the theory that global warming is destroying our planet".

Lindsay Perigo referred to David Bellamy's interview in our last
post. The article is a fascinating read and can be viewed by clicking HERE

Please Mr. Key, Do Bury Your Head in the Sand

The increasing irrelevance of the Green Party will be on full display at the "man made" Oriental Parade Beach tomorrow.

Apparently it's Global Action on Climate Change Day and the Greens plan to highlight the government's cooling on climate change policy.


It will be interesting to gauge the media's perception of this event and future coverage on the climate change debate.

Until now, global warming alarmists have been given centre stage by the media that are happy to promote a self perpetuating populist crisis. But the tide is (slowly) turning.

Small business owners that will feel the wrath of the government's environmental policies will be pleased with the creep of reasoned debate that is slowly being permitted to enter climate change coverage.

5 December 2008
Press Release: SOLO - Sense of Life Objectivists


On the eve of Global Action on Climate Change Day, Green Party co-leader Jeanette Fitzsimons frets that our new government " is being swayed by Act leader Rodney Hide and that party's head-in-the-sand approach to climate change."

"I certainly hope so," says SOLO Principal Lindsay Perigo."In fact, of course, Mr. Hide is virtually the only politician not to have his head in the sand, the only one not to ignore the overwhelming evidence that climate change is natural, cyclical, not man-made ... and that the earth has entered another cooling period.

As famed British botanist David Bellamy said in a recent interview, 'Global warming is part of a natural cycle and there's nothing we can actually do to stop these cycles. The world is now facing spending a vast amount of money in tax to try to solve a problem that doesn't actually exist.

"The fact that Ms. Fitzsimons' brand of medieval hysteria has held sway for so long all around the world is the true scandal of our times.

"Ms. Fitzsimons thinks that the man-made Oriental Parade beach, where she will do her King Canute impersonation tomorrow, will disappear unless industrial civilisation is brought to its knees within a week (unlike Ms. Fitzsimons, Canute knew, of course that he couldn't really control the tides).

New Zealand has the chance, now that the new government has put the idiotic Emissions Trading Scheme on hold and agreed to revisit the science of climate change, to be a world leader in repudiating this destructive nonsense, which is an affront to reason and freedom," Perigo concludes.

http://www.scoop.co.nz/stories/PO0812/S00072.htm

Hostel owner 'spied on women showering'


Yuck!...sounds like a modern day remake of a popular motel movie from yesteryear?

New Zealand Herald
December 05 2008


Central Otago hostel owner Phillip Anderson filmed his female guests for a year through a two-way mirror he installed in their bathroom, a court has been told.

When he finally felt remorseful about what he was doing, he ripped the camera out and destroyed the tapes - except for a two-hour highlights package which he watched during pornography evenings with a friend.

Anderson, 44, who was running a backpackers hostel at Tarras, near Wanaka, was yesterday sentenced in Alexandra District Court to 150 hours' community work and nine months' supervision, The Southland Times reported.

He earlier pleaded guilty to possession of an intimate visual recording.

The court was told Anderson and a friend installed the camera behind a two-way mirror in the bathroom of the hostel about four years ago.
It was hooked up to a recorder in Anderson's bedroom and filmed both the shower and the toilet of the hostel. When women went into the bathroom Anderson would activate the camera.

He held on to a highlights tape which contained two hours of footage of 15 women showering. He watched the tape many times with his friend during pornography nights, said police prosecutor Tim Hambleton.

Discovery of the tape, which Anderson kept in a safe, led to his downfall.

When the game was finally up, Anderson admitted to police what he did was "disgusting and sick".

Defence lawyer Tim Cadogan said the victims were unknown and had no knowledge of the offence. He said Anderson had no previous convictions but his friend had been in court for very serious sex offending.
Anderson was "extremely remorseful" about his behaviour and no longer operated a backpackers at the address, Mr Cadogan said.

Judge Paul Keller said the recording was premeditated and Anderson had kept the tape for a long time.
He ordered Anderson to undertake counselling as directed.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10546660&ref=rss

Corporate Responsibility Key To Future Success

The press release appended below from NZ Post made me fume.

NZ Post CE, Mr Allen said the company had long recognised it is not enough operate merely as a profitable business and is ramping up corporate responsibility and climate change programmes - Please!

There is an increasing socialist idealism that is creeping into business culture that is championing the concept of corporate social responsibility. This deserves to be challenged. Our schools seem to be aiding this fashionable trend of promoting triple bottom line accounting where social and environmental responsibility is promoted above financial bottom line objectives.

It seems that political correctness has taken precedence over core business principals. The first duty of a business is to its shareholders and employees is to make a profit. The old-fashioned, one-dimensional financial bottom line must always take precedence. The failure to do so has its own serious social consequences.

Business is the wealth-creating institution of society. Its prime “social” role is to meet consumers' needs in the most efficient manner, and this is how capitalism has raised living standards to the level we enjoy today.

Speaking as a forced shareholder in NZ Post, I suggest that Mr Allen start focusing on economic sustainability instead of transforming the company into a new age social adjunct.

5 December 2008
Press Release: New Zealand Post


Ethical behaviour and business sustainability through planned corporate responsibility programmes are essential to future business success, New Zealand Post Group Chief Executive John Allen said today.

Commenting on the Ethical Governance category award to New Zealand Post Group at last night’s 2008 Deloitte/Management Top 200 awards, Mr Allen said the company had long recognised it is not enough operate merely as a profitable business.

Last year the company further strengthened its corporate responsibility programme. In addition to providing a direct response to climate change, it has established benchmarks for its broader corporate responsibility practices and is working to enhance transparency and public engagement about the Group’s activities.

“As a State owned enterprise, we are required to be as profitable and efficient as a comparable privately owned business,” said Mr Allen. “We are demonstrably meeting our commercial obligations, with our financial performance in recent years reflecting a planned strategy of growth and diversification – including the establishment of Kiwibank and joint venture courier operations in New Zealand and Australia.

“But operating profitably is not sufficient. We must also be a good employer, and we must exhibit a sense of social responsibility for the communities in which we operate. For New Zealand Post Group, our communities are in every corner of New Zealand.

“Business sustainability for New Zealand Post Group is therefore underpinned by these two important factors: Providing a good rate of return to our shareholders – the Government, and therefore all New Zealanders – and an unqualified commitment to our social obligations through an integrated corporate responsibility programme that frames our community, environment, workplace and marketplace practices.

Mr Allen said last night’s award was a tribute everyone in the New Zealand Post Group – “but we are aware that our work in this area is continually evolving and that there is always room to improve. The challenge for us, and for all companies, is not just to keep pace with changing community expectations, but to anticipate society’s needs and keep ahead of them.”

Mr Allen also congratulated Kiwibank Chief Executive Sam Knowles and the minority-owned associate company, Datacom Limited, for being nominated in, respectively, the Executive of the Year and Company of the Year categories.

“Overall, it is very pleasing to see the leadership, performance and sustainability across the New Zealand Post Group being recognised by the wider business community,” he said.

http://www.scoop.co.nz/stories/BU0812/S00140.htm

Click the "Get Widget" link below to place this widget on your website or blog!