Wednesday, November 19, 2008

The luxury (golf) travel landscape

It would appear that no industry is immune from the current economic challenges, indeed the travel industry is feeling the full effects of the lower confidence of US consumers. Having said that, I believe that the affluent (golf) traveler will probably return to their lifestyle habits, including travel, quicker than the wider population.

Since the New Year we are witnessing some very early indications that some of this may be occurring. For the prospective international golf traveler there truly has never been a better time to buy a foreign trip; availability is excellent; suppliers are providing some value added incentives and the exchange rate is generally more favorable today than it was a few months ago.

An emblematic sign of the times in southern Spain; an unnamed, exclusive club which has accepted visitors on a limited basis for many years has dropped green fees by 40% while opening up access significantly.

On the air travel side, premium international travel has been affected by a decline in corporate travel and as a result it has probably never been cheaper, with good availability, to purchase discounted First & Business Class travel.

These cycles are just part of the normal economic ebb & flow and are inherently good as it tightens up businesses that possibly were getting overstaffed or delivering poor service. I know from personal experience that as a company, we have been innovating with various changes to our business practises and also redoubling our efforts to develop compelling travel opportunities. We also have been working to create messaging and communications which are as attractive as possible to potential travelers.

On the supplier front, we are excited about seeing Turnberry Hotel reopen after their extensive renovations & refurbishment this winter. Turnberry was acquired by a Dubai based company in 2008 and have closed the golf course and hotel over the winter as they prepare for the 2009 Open Championship. The hotel is being rebranded as a Luxury Collection property within Starwood (an upgrade from Westin) when it reopens this coming summer.

Also in Scotland we have course openings at Castle Stuart (near Inverness) and Machrahanish Bay which will both add tremendously to the golfing landscape in their respective regions.

All in all, a wonderful time to travel if you have the ability to make the trip.

Tuesday, July 08, 2008

The economy and international golf travel

For a number of years, as the economy has enjoyed solid growth, international golf travel has also increased in terms of travelers and dollars spent. As that demand increased at various destinations around the world, more often than not so would prices. The basic law of supply & demand.



Historically we have seen "golf inflation" increase in some areas at a far greater rate than inflation calculated with more of the staples of life. Golf inflation being defined as the increase of green fee rates.



Therefore, as we hit this speedbump in the world economy and the impact of this slowly works through various sectors, it is heartening to see suppliers take the lead in holding prices for the 2009 season, even as their costs increase. The latest, and highest profile announcement is that of the St. Andrews Links Trust who manage the Old Course, St. Andrews are leaving their green fees unchanged for the 2009 season. This is welcome news and while the actions of one supplier will not change the underlying challenges in our business, we hope that others join in and make a similar statement. We have previously been advised by a number of hotels they are maintaining 2008 prices for travel in 2009...great news as these companies understand, as the Links Trust does, the need for a concerted effort to reinvigorate golf travel to the British Isles.

Saturday, April 05, 2008

Various thoughts

I have never been one to play nine holes of golf on my own, or even contemplate a golf vacation without friends...but some people relish the experience. Many travelers to the British Isles would not travel in any other fashion. Many people enjoy the unique opportunity to meet new friends around the world on the links courses. By definition you are far more likely to mix with the locals and other travelers if you are not ensconced in your group of 8 golfers from your home club. A pleasant conversation with the starter or golf pro and before you know it, you may be striding down the first fairway with the local butcher and Club Champion. Over the years I have come to respect the role of the group leader as it can be fraught with frustrations, trying to get your group together is akin to herding 8 cats into a wheelbarrow...and for some, it is simply not worth the effort.




Guys are probably all guilty of the last minute purchase in the airport on the way home...well, at least I have heard my friends talking...so the question is, how do you locate a better gift for the spouses than a bottle of perfume? Plan ahead is the short answer. Ask the Concierge in your hotel. Make an effort to identify products in advance of your trip that would be appreciated and are native to your destination, e.g. New Zealand lambswool. Be sure to carve out time in your schedule so that you can shop in a reasonable fashion as opposed to a mad rush on your last day. While I will not claim to be a shopper, one of the most enjoyable shopping experiences was in Lijang, China as there were so many interesting and unique options available.

Friday, April 04, 2008

Air Travel...options

Scheduled air service continues to defy the odds and get worse. When we thought we had witnessed poor service, they find ways to charge more and do less. Senior management of many US airlines have a bunker mentality that flows to the front line workers in many cases. To suggest they are in a service industry is a misnomer.


In our business we see people think they are comparing apples to apples in terms of international premium cabin travel and nothing could be farther from the truth. Not all Business Class tickets are created equally. Whereas Singapore Airlines is considered by many to be the gold standard, a number of US airlines operate at the other end of the spectrum. As they have tightened their belts through economic turbulence, management has wisely stopped investing in premium products that garner the most revenue and yield! An example would be US Airways which offers some of the saddest "Envoy Class" (Business) service to be found. In no particular order; the seats are basic recline and squirm in design - the type most premium airlines retired some time ago; food and catering options which are no better than we expected in economy a few short years ago; a surly cabin crew who only want to rest the tray they are carrying in front of you so they can read the book they just bought; airport lounges which are busier than the concourses and I have consistently noted a friends and family upgrade policy for gate agents to use so that a cabin is filled with families and anyone else the gate agent wishes to curry favor with - no point in wasting such benefits on paying customers! The discounted fare that they offer is there for a reason...because that is all it is worth. Premium airlines with meaningful products may well charge slightly more, but I would strongly encourage you to consider all of the merits of your options. Two simple rules to remember. Not all Business Classes are created equally, unlike economy class (for the most part) and secondly, refunds are not issued at 35,000 feet when 90 minutes into a 15 hour return flight you have realized the your error!

Sadly Eos Airlines closed down this week, one of the start up carriers with an all Business Class philosophy which highlighted how bad the service has become at the legacy carriers.



As the scheduled airlines do their best to offend the travelling public, I have become aware of two attractive options for short haul air travel in the southeastern USA. Using the VLJ (Very Light Jet), a company named DayJet started service from Lakeland, FL. Two pilots and three passengers in a small jet (hence VLJ). Your cost is based on how flexible you are and therefore the ability of DayJet to sell the other 2 seats. The least expensive is approximately $1 per mile...the most $3 per mile. It is on demand service within a defined region, currently it is Florida, southern Geogia and southern Alabama...with plans to be in the Carolina's later this year. The second option is an air taxi service (SATSAir) operated from Greenville, S.C. They have a fleet of approximately 30 Cirus 22 single engine aircraft. Rates start at less than $500/hour and for short hops it is very affordable (pilot plus three passengers). Limited luggage space although three sets of clubs will make it! As the airlines continue to alienate their best yielding customers, more alternative options will become available and the downward spiral will continue.

Thursday, April 03, 2008

Travel trends

The recent changes to checked baggage policy by some US airlines will certainly affect golfers as they travel. For years we have been occassionally required to sign the "limited release" baggage document by the airlines, to protect them in the event of damage! In typical airline fashion, this policy was administered with the consistency of a drunken sailor...the only change now, is that they will charge you for the pleasure!



To combat the consistently poor luggage handling of the airlines I have been shipping my golf clubs ahead of me when it makes sense. I have enjoyed good success for short trips around the USA with UPS. The are reliable and very reasonably priced if you can use their Ground Service. We have also been using a company, Sports Express, for our clients as they travel internationally. Sports Express in turn contract with UPS and FedEx but they are your concierge in front of the shipping companies should you encounter any service issues. There are far greater complexities when shipping golf bags, or indeed anything overseas, as customs can be a serious problem... if all of your paperwork is not entirely correct your attempts at trying to make your life and travels easier will seriously backfire! My advise is to use someone like Sports Express.






Another area which has changed significently in recent years is communications, and more specifically, communicating home or to the office when you are on vacation. I use a number of tools when travelling, each for a different purpose based on cost, reliability, etc. For the more mundane domestic US travel a cell phone is hardly a revelation. I could not recount the last time I used a hotel room phone or pay phone. My phone/PDA also delivers my voicemails as email attachments so I can easily listen to without calling my voicemail at the office (to discover I have no messages). When travelling overseas I will buy a local SIM card for my cell phone so that I have a local number if I will be in that country for several days. It is now substantially easier to have US Carriers unlock cell phones than in the past. I called AT&T prior to a trip to Asia and they provided an unlock code within 5 days, it was very easy. Finally, for overseas travel I use Skype. Most hotels have broadband internet access and I use Skype to stay in touch via video with home. It works extremely well and is no charge...the price is right. I also use Skype (their SkypeOut service) for calling back to the USA from overseas (2.5 cents/min). All in all, with the correct planning you should be able to remain in as much contact as you wish when travelling...all for a reasonable cost.



An issue that occurs with our clients from time and I have noticed is consistently handled in a different fashion overseas, as compared to travelling within the USA...rental cars. On average I probably rent 30 cars annually. I have found Avis to be the most reliable but I would suspect most of the major companies are similar. The process is all very convenient if you are a member of their premier club, the car and paperwork are waiting for you, no lines (generally) and the return has someone in position to verify fuel and make sure all four tires are returned! Once you have their receipt in hand the transaction is completed. Consistently outside the USA I have noticed a much stricter review of cars for scratches, dents or any other damage when you return it. It is thoroughly inspected. During the rental process some companies (outside USA) will take a charge for the full tank of gas that will be refunded to you after you return the car with same. This adds another step in the process and just makes less convenient. The one lesson to NEVER forget, when you end your rental agreement, get the final receipt from the company which simply acknowledges it is back in their custody without damage and with a full tank of gas. Failure to insist on this can be problematic if subsequent questions arise or damage is identified.

Tuesday, April 01, 2008

...and the golf season officially starts!

The Masters will forever be the official start of the golf season. It is when so many golfers start to think about the pending golf season. For many years golf was a male bonding experience, but we are witnessing a quiet migration to more of a couples travel experience. While the "guys trip" to the British Isles still exists in many quarters, spouses are enjoying 10 day and longer trips to such exotic destinations as China, New Zealand and South Africa. What should one of these trips look like, to keep all participants satisfied and deliver a great travel experience?

Ideally, the trip starts with two or more like minded couples, composed of either 2 or 4 golfers. If only two of the group are golfers, it is important to establish a finite number of rounds of golf you wish to play during your trip so that the non golfers have a clear expectation of what the trip will look like on days when golf is not an activity. If I may use South Africa as an example, the trip may be 11 nights in total on the ground. Of the 11 nights, 3 should be spent on safari (during one of these days golf may be scheduled. During the remaining 8 days, considering you have some travel time...lets add 4 more rounds of golf. With proper planning you will get to enjoy the very best golf that the destination has to offer, enjoy a safari with your spouse plus leave many afternoons and several full days for sightseeing. Quite possibly your spouse will be delighted to spend some time relaxing and you golf...or she may visit the spa or go shopping. Taking your golf clubs on overseas trips does not mandate they are used very day!

One question often asked of me is the value of travel insurance. As with most things financial it becomes a personal question, in the simplest terms, what is your threshold for financial loss. Some travelers realize they may lose money if they cancel a trip but are willing to live with these consequences. Other travelers prefer to pay a small premium, usually around 6 - 7% of their trip cost to provide some protection in the event of an unexpected change of plans. Probably the worst path to follow is that a medical reason or some other unexpected emergency is sufficient grounds to waive the agreed terms and conditions on your travel arrangements. On rare occasions this may be the result, but it is folly to leave yourself reliant on a favorable outcome when you only basis for discussion is future goodwill. Travelers must remember that all suppliers are running businesses with significant financial considerations. We would consider all elements in making a final determination on how to handle a situation but invariably it is not the open checkbook policy some travelers expect... because this is the travel industry!

Monday, March 24, 2008

Golf Travel - Facing some headwind?

It only takes a few moments reading the newspaper or watching the news to realize the media is well focused on the struggling economy. While I have long believed we are fortunate to sell to an audience which is recession insulated, I would be foolish to believe this current downturn is not having an impact on our business.

The combination of a slowing economy and weakening dollar is a one two punch that directly impacts potential travelers who are considering an overseas vacation. The more affluent travelers will, on average be less concerned about making the purchase decision as for them it is a lifestyle choice. We have also spent a considerable amount of time and effort in recent years substantially expanding our portfolio to include a total of 12 destinations with land based programs and many more from our Golf Cruising programs. This diversity of programs and destinations is serving us well as travelers decide to alter their plans for various reasons.

Looking from the other side, one destination which has been particularly hard hit is Ireland. For the last 20+ years they have done a terrific job of promoting golf to their shores. In many ways it was perceived as a well priced alternative to links golf in Scotland. As demand increased so did the prices...as the dollar weakened to the euro the prices increased even more. In many ways for golf travel to Ireland, the 2008 season represents the perfect storm.

Having said all of the above about the challenges facing travel, lets focus on the positives. Golfers wishing to travel to the British Isles while watching their budget can still do so and enjoy a terrific experience. Northwest Ireland remains great value, outstanding links golf, relatively few golfers and fine accommodations. The golf course names may not be household in stature but the quality of the golf experience is outstanding. Another interesting aspect of golf in Northwest Ireland is that along with fewer visitors, you will most likely find the locals more engaged in, and interested by your visit. The chance to enjoy the unscheduled pint of Guiness with the local butcher at his golf club is far greater than in the more tourist developed regions.

Monday, March 10, 2008

International Golf Travel - Restarted

Never was a truer word uttered about children changing your life! With our son 2 1/2 and becoming a little person I am able to resume some of my travel and also recommitted myself to posting my blog on a regular basis.


Our business since 2005 has continued to evolve substantially. While the British Isles remains the mainstay of our business, we have enjoyed solid growth and business activity to our 8 non-British Isles destinations. Additionally we are in the process of launching a significant addition to our golf travel lifestyle options when we introduce, "Golf Cruising by PerryGolf". This is a collection of Golf Cruise programs aboard a variety of ships and barges throughout the world.



Moving forward I intend to spend some time and discuss different destinations and travel options in various destinations around the world, which I believe resonate with affluent travelers seeking a premium golf travel experience.



The one common issue with virtually all international travel, save for a few very lucky people, is air travel. As the airlines grapple with high fuel prices, antiquated labor contracts and otherwise surly staff a few bright spots on the horizon;



Heathrow - Terminal 5 - The new home for British Airways and it is spectacular. The traffic flow is designed for current living, traditional check-in pods have been removed in this online world...BA expects upwards of 80% of their passengers to check-in before arriving at the airport, they will head straight to the Bag Drop area before clearing security. The Terminal sets a new standard for airports and the lounge complex (for premium passengers) is very well done. It will be interesting to see how other airlines respond as this will give BA a clear advantage in the service battle. They currently have a superior onboard service...the ground experience will match it. You may view more details at http://www.heathrowairport.com/portal/page/XYZTerminal5/




I travelled to the UK last fall and took advantage of the opportunity to try Silverjet, the UK based airline offering an "All Business Class" product on board a B767 with 100 seats. Overall,a good experience I would recommend them BUT this is a classic case of the marketing guys running the company. The simple rule of commerce.....expectations must be realistically set and delivery must surpass (http://www.flysilverjet.com/) . It would be entirely reasonable for your expectations to run away if you take their marketing material seriously...always temper your enthusiasm with the "how much did I pay" reality check. Specifically;


The seats are angled, lie flat that I slide on, best comfort is the Z position


Entertainment is a hand held pre loaded digital movie player


Food service is decent. Try to get a second glass of wine with dinner!


Lounge in Newark is fairly basic, landside operation. Lounge in Luton is good, arrival process has showers, but no private basin in which to shave!


Best part of entire experience, and worth the effort to fly Silverjet at least once from Luton...check-in and boarding process through their private security...very slick by any measure.


I hope they succeed although with the current oil price level it will be challenging. They offer a Business Lite product and do not expect any more than that...indeed, they charge a Premium Economy fare and deliver a Business Lite experience...now why can the marketing guru's at Silverjet now sell on that basis!


This week Singapore Airlines, the leader in air travel excellence announced plans to convert it's daily nonstop service to Singapore from NYC and LAX to an All Business Class enviroment. This decision is apparently based on operational costs and also the understandable lack of demand for 18 hours in a Premium Economy seat. They will operate these flights with their flagship Business Class product (http://www.singaporeair.com/saa/en_UK/content/exp/new/businessclass/index.jsp) ...for scheduled air service,this is about as good as you can expect.