CATO View – September 2010
The Stella-Jetset Travelworld merger:
vertical integration
should not go too far
THE decision by the ACCC to approve the merger between Stella Travel Services and Jetset Travelworld, whilst not entirely unexpected, must have come as a great relief to the two newly merged parties.
The Statement of Issues released in July by the ACCC gave interested parties plenty of time to lodge submissions and express their concerns. It is known that a number of submissions opposing the merger were lodged and not everyone will be happy with the outcome.
However, due process has been taken and as our new Prime Minister would say, now is the time to move forward.
CATO looks forward to the same close working relationship with the new Stella/Jetset entity as it had with the two previously separate groups. The link in the supply chain between the wholesalers providing the product to the retailer to on sell to the consumer has not changed.
However we are concerned that the new entity does not pursue vertical integration too vigorously, driving sales to their in-house suppliers, but rather continue to give the consumer the variety of choice that is available.
It is the aim of CATO to see every brochure of every member on the retail travel agents’ shelves. This will continue to provide the customer with the variety of choice they deserve, through reputable, licensed wholesalers.
From the wholesalers’ perspective, however, it is now even more impor-tant to ensure that the product they offer is both attractive and competitive enough for both the retail chains and the consumer to want to buy it.
NZ Earthquake
It is good to hear that travel is getting back to normal in Christchurch after the recent earthquake.
This is another reminder of how important it is for travellers to book through a licensed travel agent who in turn uses a licensed wholesaler.
The combination of the agent’s personal knowledge of the client and the wholesaler’s knowledge of the destination, along with their up to date information through on the ground contacts, assures the client of the swiftest action to ensure their safety, informed advice and even a swift repatriation if necessary.
Within hours of the earthquake our members specialising in New Zealand were in their offices and on the phones to the retail agents and clients to ensure all were kept up to date and informed about what was happening. You will not find this type of personalised service when booking direct or via the internet.
New Federal Government and Consumer Protection
The instalment of the Labor government for a second term will hopefully work in the industry’s favour regarding the outcome on the review that was done earlier in the year on consumer protection regulation in the travel industry.
Continuity of ideas and personnel should mean the process started will continue. We wait with interest to hear the outcome of the review and how it will affect our members.
Peter Baily’s CATO View column appears quarterly.