STRONG forward bookings, particularly in the domestic market, have today seen Virgin Australia issue an upgraded result forecast (TD breaking news), with the carrier now expecting its FY19 first half result to exceed $100m in underlying profit before tax.

The confident prediction comes despite an estimated $88 million higher fuel bill for the period, with the increased sales more than offsetting the impact of rising oil prices.

Sales for the three months to 30 Sep are up 9.7% and a similar year-on-year increase is expected for the current quarter, VA said.

The underlying profit figure is used by the VAH board to assess financial performance, and excludes impairment losses and restructuring costs.

Last year the carrier reported $88.1 million in underlying profit for the same period, so today’s forecast is an increase of 22%.

With regard to the full year result VA said it would continue to monitor trends, given that the second half of the financial year is a traditionally weaker period.

Source: traveldaily

EVENT Hospitality & Entertainment has outlined plans to expand key hotels including its QT Sydney following an increased valuation of its property portfolio.

At the group’s AGM on Fri, CEO Jane Hastings said the total fair value of Event’s property had increased to $2 billion, well above the book value of $1.2 billion, and that it provided excellent future growth opportunities.

Plans in the pipeline include an expansion of the QT Sydney to add new rooms and conference and event facilities as part of a wider development that will involve retail space and a commercial tower on George St.

The group is also planning to incorporate a hotel in its redevelopment of the George St cinema site in Sydney, while in Melbourne plans are being progressed for a major expansion of the city’s Rydges property to include new rooms and a conference centre.

Other plans include an expansion of conference spaces at QT Melbourne, a new hotel and entertainment development alongside the soon-to-open QT Wellington in New Zealand and new facilities at the Thredbo ski resort including a gondola to replace the Meritt’s chair lift.

Upgrades are also planned at several properties including Rydges Queenstown, QT Gold Coast, QT Canberra and Rydges North Sydney.

While Event’s hotel division had enjoyed strong growth, Hastings said the newly opened QT Perth had made its debut in a tough local market and that it was expected to suffer negative RevPar growth for several years.

“As a result, it will take at least three years for this investment to generate a positive contribution to earnings,” she said.

Source: traveldaily

THE new Enterprise Bargaining Agreement (EBA) set to be implemented for Flight Centre brand and Student Flights staff in Australia will “provide our people with higher retainers or base pay, while continuing to reward them with additional incentives for delivering great customer outcomes,” according to FCTG CEO Graham Turner.

Details were unveiled during today’s Flight Centre Travel Group AGM, with Turner also confirming profits in the Australian leisure business had been impacted by the recent ABC story on the company’s sales techniques and staff remuneration (TD 22 Aug).

However the “disruption is now abating,” Turner said, while overseas operations were continuing to perform strongly and the biggest recruitment drive in the company’s history is set to underpin an increase on last year’s record result, with up to $420m in full year underlying profit forecast (TD breaking news).

Turner said the EBA had enabled the formalisation of other benefits that are “not strictly financial but are important to both our company and our people,” such as additional leave for travel, leisure activities and personal development.

“We also believe that some provisions that are included in this agreement will help improve retention in our sales force,” he said, while other initiatives to keep staff include an in-house mentoring program, traineeships based on the apprenticeship model used in Flight Centre’s UK operation, Money Coaches to help first and second year consultants improve their financial position, and a monthly fitness program overseen by the company’s Healthwise business.

MEANWHILE Turner said the company was focused on improving the performance of shops that were last year switched from the former Escape Travel and Cruiseabout brands, including the potential relocation of about 35 stores.

Other initiatives include the vertical integration, structuring and growth of in-destination businesses; participation in NDC connectivity rollouts; and work on a low-cost “self-service” offering for customers.

Source: traveldaily

INSPIRING Journeys has reached a “pivotal” time in its growth, AAT Kings and Inspiring Journeys Managing Director Hans Belle told Travel Daily at the brand’s official launch of its Australian and New Zealand 2019/20 program on Fri.

The brochure introduces four new itineraries (TD 03 Sep), bringing the program to a “substantial” 13 itineraries.

“Nine itineraries is probably not enough for us to firmly establish ourselves in the market,” he said.

“That’s why this year we’ve introduced four new itineraries and we think we can back those four because of the strength of the pre-existing nine.”

The fresh additions include a 10-day The Ultimate Territory in Style, venturing from Darwin to Uluru and exploring Kakadu National Park, Katherine Gorge Alice Springs and Kings Canyon.

A seven-day Tasmania’s Footsteps and Trails has been introduced, which features a two-night Aboriginal guided walk around the Bay of Fires and Mt William areas.

Also new to the program is a seven-day A Journey to the West leaving Perth and eight-day The Unchartered Coast which departs from Brisbane.

“We know that we need to make sure that we are really thoughtful about building this brand at the right pace because we want trade to have confidence in this,” Belle told Travel Daily.

Inspiring Journeys has expanded the program on the back of “a really great year from 2017-18 with really strong, double digit growth,” Belle said.

“We’re feeling really confident about the category of small group touring,” he said.

The program includes all definite departures in the NT.

More on page six.

Source: traveldaily