1 00:00:03,410 --> 00:00:06,309 Sean Aylmer: Welcome to the Fear and Greed Daily Interview. I'm Sean Aylmer. 2 00:00:06,680 --> 00:00:09,110 Sean Aylmer: We're less than a week away from our international borders 3 00:00:09,110 --> 00:00:13,400 Sean Aylmer: reopening to all vaccinated visitors. It's been a very long 4 00:00:13,400 --> 00:00:15,940 Sean Aylmer: couple of years for the tourism and travel industry, forced 5 00:00:15,940 --> 00:00:19,210 Sean Aylmer: to rely on government support and limited domestic travel which 6 00:00:19,210 --> 00:00:22,779 Sean Aylmer: was entirely at the mercy of state border closures. So 7 00:00:22,780 --> 00:00:24,850 Sean Aylmer: where to from here for the industry? Are we going 8 00:00:24,850 --> 00:00:27,650 Sean Aylmer: to see it return to normal or will travelers be 9 00:00:27,650 --> 00:00:30,670 Sean Aylmer: a bit reluctant to book that overseas trip? Adam Schwab 10 00:00:30,670 --> 00:00:33,360 Sean Aylmer: is a co- founder and CEO of Luxury Escapes. Adam, 11 00:00:33,440 --> 00:00:34,560 Sean Aylmer: welcome back to Fear and Greed. 12 00:00:34,920 --> 00:00:35,500 Adam Schwab: Thanks, Sean. Great to be here. 13 00:00:36,260 --> 00:00:39,060 Sean Aylmer: So how excited were you when the prime minister said 14 00:00:39,060 --> 00:00:40,970 Sean Aylmer: that they're finally going to reopen borders? 15 00:00:41,680 --> 00:00:45,050 Adam Schwab: For us, we're more outbound than inbound, so we don't send 16 00:00:45,050 --> 00:00:48,380 Adam Schwab: a huge amount of British or American people to Australia. 17 00:00:48,380 --> 00:00:51,000 Adam Schwab: But where it is beneficial in two different ways. One, 18 00:00:51,000 --> 00:00:53,750 Adam Schwab: it just generally helps confidence, and we've certainly seen in 19 00:00:53,750 --> 00:00:57,240 Adam Schwab: the last sort of two, three weeks and it accelerated after 20 00:00:57,470 --> 00:00:59,940 Adam Schwab: the announcement, we've definitely seen some confidence come back in the 21 00:00:59,940 --> 00:01:02,529 Adam Schwab: market. We're not quite back at pre- COVID levels yet. 22 00:01:02,560 --> 00:01:05,050 Adam Schwab: We're actually not that far off. And the second thing 23 00:01:05,050 --> 00:01:07,780 Adam Schwab: it helps with is it helps with plane loads. So 24 00:01:07,930 --> 00:01:11,100 Adam Schwab: when airlines like Singapore, and Emirates, and Qatar, and obviously Qantas, 25 00:01:11,890 --> 00:01:14,569 Adam Schwab: can start filling their planes inbound, they can also put more 26 00:01:14,569 --> 00:01:16,760 Adam Schwab: planes on outbound. And we saw that pretty quickly. Emirates 27 00:01:16,760 --> 00:01:19,070 Adam Schwab: put a second Dubai to Sydney flight on pretty quickly, 28 00:01:19,120 --> 00:01:21,050 Adam Schwab: second A380 daily flight came. 29 00:01:21,340 --> 00:01:23,960 Sean Aylmer: Yeah. I know. Second A380, that's a lot of people. 30 00:01:24,160 --> 00:01:27,130 Adam Schwab: Yeah, I think 400 per plane. So it's certainly great 31 00:01:27,130 --> 00:01:30,330 Adam Schwab: for confidence and it's definitely directionally the right thing to 32 00:01:30,330 --> 00:01:32,150 Adam Schwab: do. And obviously we had followed up by the cruise 33 00:01:32,209 --> 00:01:35,979 Adam Schwab: announcement, which again we're not a huge cruise seller, but we do sell 34 00:01:35,980 --> 00:01:38,630 Adam Schwab: some cruise. And the fact that cruise is finally opening 35 00:01:38,630 --> 00:01:41,280 Adam Schwab: in what looks to be mid- April is a wonder 36 00:01:41,280 --> 00:01:41,930 Adam Schwab: for that industry. 37 00:01:42,270 --> 00:01:45,330 Sean Aylmer: Yeah. So what are you seeing people doing? I mean, was there 38 00:01:45,330 --> 00:01:48,110 Sean Aylmer: a jump in outbound after that announcement? 39 00:01:48,520 --> 00:01:52,310 Adam Schwab: What we've found, even over the last sort of 18 months, is demand goes up 40 00:01:52,310 --> 00:01:53,670 Adam Schwab: the stairs and down the elevator. 41 00:01:53,670 --> 00:01:53,690 Sean Aylmer: Yeah. 42 00:01:53,910 --> 00:01:57,140 Adam Schwab: So it slowly, slowly builds. And then as soon as there's 43 00:01:57,140 --> 00:01:59,030 Adam Schwab: a variant or an outbreak or whatever happens, it just 44 00:01:59,030 --> 00:02:02,330 Adam Schwab: drops to... not to zero, but close to it. And that's with that with 45 00:02:02,330 --> 00:02:04,840 Adam Schwab: the story of Omicron. We had a really strong October, 46 00:02:05,440 --> 00:02:07,940 Adam Schwab: looking like a really strong November, and then Omicron hit 47 00:02:08,560 --> 00:02:11,770 Adam Schwab: and demand sort of dropped 75, 80% within sort a few 48 00:02:11,770 --> 00:02:14,910 Adam Schwab: days. And it's slowly crept back up to almost where 49 00:02:14,910 --> 00:02:17,200 Adam Schwab: it was in October, November. And it's sort of taken 50 00:02:17,200 --> 00:02:18,440 Adam Schwab: that two months to get back there. 51 00:02:18,889 --> 00:02:21,880 Sean Aylmer: Okay. So where are people wanting to travel? That's a thing. 52 00:02:21,880 --> 00:02:23,709 Sean Aylmer: I mean, I mentioned to you off- air that my 53 00:02:23,710 --> 00:02:26,410 Sean Aylmer: partner and I, Jackie, have booked a trip to Fiji 54 00:02:26,470 --> 00:02:29,690 Sean Aylmer: using Lux Escapes. Where are people wanting to travel? 55 00:02:30,030 --> 00:02:31,530 Adam Schwab: Well, you've hit it on the head. So South Pacific 56 00:02:32,000 --> 00:02:35,020 Adam Schwab: is incredibly popular for obvious reasons. Apart from being a 57 00:02:35,020 --> 00:02:38,120 Adam Schwab: really short flight and really safe, it's sort of considered 58 00:02:38,120 --> 00:02:38,841 Adam Schwab: almost another state of Australia. 59 00:02:38,841 --> 00:02:38,842 Sean Aylmer: Mm-hmm (affirmative). 60 00:02:38,842 --> 00:02:43,769 Adam Schwab: Our big region... So our big pre- COVID destinations of Bali, 61 00:02:43,770 --> 00:02:47,620 Adam Schwab: Thailand, Malaysia, Vietnam, they haven't really come... and Singapore, haven't 62 00:02:47,620 --> 00:02:49,960 Adam Schwab: really come back yet. There's still a small amount of 63 00:02:49,960 --> 00:02:53,200 Adam Schwab: latent Bali demand, people getting in early and locking away 64 00:02:53,200 --> 00:02:56,850 Adam Schwab: those incredible deals. But generally, even though Thailand's fully open, 65 00:02:57,160 --> 00:02:59,220 Adam Schwab: people seem a little bit wary of the if you 66 00:02:59,220 --> 00:03:01,609 Adam Schwab: do get COVID over there, there can be some sort 67 00:03:01,610 --> 00:03:04,139 Adam Schwab: of ramifications of hospital stays. And I was in Thailand 68 00:03:04,139 --> 00:03:07,169 Adam Schwab: in November and it was completely fine, but I think it's just clearly a 69 00:03:07,169 --> 00:03:10,560 Adam Schwab: bit of reticence about Thailand. Bali's not open yet, obviously, 70 00:03:10,560 --> 00:03:13,790 Adam Schwab: so there's still reticence there. And Vietnam is opening it 71 00:03:13,790 --> 00:03:15,800 Adam Schwab: looks like in about four to six weeks, but again, 72 00:03:15,800 --> 00:03:19,100 Adam Schwab: very little publicity. So Australians tend to be avoiding those 73 00:03:19,100 --> 00:03:22,210 Adam Schwab: really popular destinations in Asia so far. Maldives is still 74 00:03:22,260 --> 00:03:25,230 Adam Schwab: pretty popular and South Pacific. And of course, within Australia. 75 00:03:25,419 --> 00:03:27,630 Sean Aylmer: Yeah. So when do you think this does get back 76 00:03:27,630 --> 00:03:29,470 Sean Aylmer: to normal? Does it get back to normal? 77 00:03:30,810 --> 00:03:33,250 Adam Schwab: Well, we saw it October, our October revenue was a record 78 00:03:33,250 --> 00:03:35,310 Adam Schwab: in business history, so that's better than normal. 79 00:03:35,510 --> 00:03:35,710 Sean Aylmer: Wow. 80 00:03:35,770 --> 00:03:36,960 Adam Schwab: The question is when does it get back to that 81 00:03:36,960 --> 00:03:41,930 Adam Schwab: level? Assuming there's no sort of new son of Omicron, no new 82 00:03:41,930 --> 00:03:44,720 Adam Schwab: variants, I think we're probably about six to eight weeks 83 00:03:44,720 --> 00:03:47,970 Adam Schwab: away from... maybe even less if Bali opens. It's probably 84 00:03:47,970 --> 00:03:51,050 Adam Schwab: six to eight weeks away from... certainly I can speak from ours. 85 00:03:51,050 --> 00:03:53,740 Adam Schwab: I can't speak for the likes of Flight Centre and Booking. 86 00:03:53,870 --> 00:03:56,420 Adam Schwab: com and Expedia. But from our perspective, and we are 87 00:03:56,420 --> 00:03:57,640 Adam Schwab: a bit of a canary in the coal mine, we 88 00:03:57,640 --> 00:04:01,490 Adam Schwab: tend to have slightly earlier demand than our competitors, but 89 00:04:01,630 --> 00:04:02,100 Adam Schwab: I think we're about six to eight weeks away. 90 00:04:03,760 --> 00:04:06,480 Sean Aylmer: That sounds very soon. Like that's actually pretty good really. 91 00:04:06,480 --> 00:04:08,940 Sean Aylmer: I mean, I appreciate that you've had some great months 92 00:04:08,940 --> 00:04:11,970 Sean Aylmer: and record months, but I would've thought that would've taken 93 00:04:11,970 --> 00:04:14,680 Sean Aylmer: the industry kind of a lot longer than that to 94 00:04:14,680 --> 00:04:17,080 Sean Aylmer: get back to normal. Is it the fact that people 95 00:04:17,430 --> 00:04:19,930 Sean Aylmer: just there's so much paint up demand, people want to get away? 96 00:04:20,320 --> 00:04:21,940 Adam Schwab: Yeah. I was going to say we're holding sort of 97 00:04:22,010 --> 00:04:24,890 Adam Schwab: tens and almost a hundred million dollars in credits that people 98 00:04:24,890 --> 00:04:27,070 Adam Schwab: clearly want to use and should use. We'd love to 99 00:04:27,110 --> 00:04:31,500 Adam Schwab: see people using their credit. So there's that there's that, there's record annual leave balances, and there's a fact haven't left 100 00:04:32,220 --> 00:04:35,110 Adam Schwab: the country in most cases in two years. So there's 101 00:04:35,110 --> 00:04:39,339 Adam Schwab: some significant demand factors that when... And we saw in the 102 00:04:39,339 --> 00:04:42,300 Adam Schwab: UK, UK and US businesses are at record levels. 103 00:04:42,380 --> 00:04:42,400 Sean Aylmer: Yeah. 104 00:04:42,779 --> 00:04:45,900 Adam Schwab: So outside Australia where people can travel, UK have basically 105 00:04:45,900 --> 00:04:48,790 Adam Schwab: opened their borders anywhere, you don't actually even need to do a... and you haven't for 106 00:04:48,800 --> 00:04:50,950 Adam Schwab: some time. You don't need to do a test to 107 00:04:50,950 --> 00:04:53,359 Adam Schwab: get back into the UK. So I was in the Maldives and 108 00:04:53,730 --> 00:04:56,080 Adam Schwab: Thailand, going back to the UK last year. Didn't do 109 00:04:56,080 --> 00:04:56,700 Adam Schwab: a test at all. 110 00:04:57,260 --> 00:04:57,420 Sean Aylmer: Wow. 111 00:04:57,420 --> 00:04:58,560 Adam Schwab: You did a two day test when you got there. 112 00:04:58,560 --> 00:05:01,909 Adam Schwab: So I think when those restrictions come off... And Australia for 113 00:05:01,910 --> 00:05:04,779 Adam Schwab: all intents and purposes is pretty close to being back 114 00:05:04,779 --> 00:05:08,290 Adam Schwab: to normal. The only handful of things that remain... Obviously 115 00:05:08,510 --> 00:05:11,820 Adam Schwab: there's testing to come in, there's isolation rules, but you 116 00:05:11,820 --> 00:05:15,930 Adam Schwab: don't actually have to test. So technically isolation's almost voluntary 117 00:05:16,010 --> 00:05:16,750 Adam Schwab: in many ways. 118 00:05:17,010 --> 00:05:17,010 Sean Aylmer: Yeah. 119 00:05:17,010 --> 00:05:20,240 Adam Schwab: And there's really masking for work. So that the main rule 120 00:05:20,240 --> 00:05:22,630 Adam Schwab: that requires, certainly in Victoria and New South Wales anyway, is 121 00:05:22,630 --> 00:05:23,909 Adam Schwab: you need to wear a mask in work, which is 122 00:05:23,910 --> 00:05:27,020 Adam Schwab: ridiculous, but that remains. Take that off, and we're actually not 123 00:05:27,020 --> 00:05:28,750 Adam Schwab: that different to Europe. 124 00:05:29,140 --> 00:05:31,020 Sean Aylmer: Stay with me, Adam, we'll be back in a minute. 125 00:05:35,630 --> 00:05:38,070 Sean Aylmer: My guest this morning is Adam Schwab, co- founder and 126 00:05:38,070 --> 00:05:42,220 Sean Aylmer: CEO of Luxury Escapes. Now, previously you have been critical 127 00:05:42,220 --> 00:05:44,620 Sean Aylmer: of the way government's handle parts of the pandemic, particularly 128 00:05:44,620 --> 00:05:47,779 Sean Aylmer: relating to borders. Do you think at this point either 129 00:05:47,779 --> 00:05:49,540 Sean Aylmer: they're doing a better job, or they've got it right, 130 00:05:49,540 --> 00:05:51,529 Sean Aylmer: or we're almost there do you think? 131 00:05:52,430 --> 00:05:54,969 Adam Schwab: Yeah, I think they're pretty close. If you look at the UK, 132 00:05:55,130 --> 00:05:57,580 Adam Schwab: Boris, I think next week, getting rid of the forced 133 00:05:57,580 --> 00:05:58,300 Adam Schwab: isolation. 134 00:05:58,490 --> 00:05:58,620 Sean Aylmer: Yeah. 135 00:05:58,620 --> 00:06:01,980 Adam Schwab: In Australia, people are isolating almost by choice, whilst there is a legal a 136 00:06:01,980 --> 00:06:04,020 Adam Schwab: requirement to report a RAT, nobody obviously knows if you've done one, 137 00:06:04,600 --> 00:06:08,650 Adam Schwab: so it's really become quite voluntary. Really, the remaining two 138 00:06:08,650 --> 00:06:10,760 Adam Schwab: items that we'd love to see removed is obviously masks 139 00:06:10,760 --> 00:06:12,860 Adam Schwab: in schools, which are just cruel and inhumane. But masks 140 00:06:12,860 --> 00:06:14,690 Adam Schwab: at work, which just mean people can go back to the 141 00:06:14,690 --> 00:06:17,600 Adam Schwab: office, and a test to get back into the country. 142 00:06:17,600 --> 00:06:19,300 Adam Schwab: It doesn't make sense. Australia's got one of the highest 143 00:06:20,029 --> 00:06:23,390 Adam Schwab: positive rates per capita globally. The need to test somebody to 144 00:06:23,390 --> 00:06:27,190 Adam Schwab: return to the highest COVID country makes just no sense 145 00:06:27,190 --> 00:06:27,500 Adam Schwab: at all. 146 00:06:27,820 --> 00:06:30,130 Sean Aylmer: Yeah. But you were a big one, you supported the 147 00:06:30,130 --> 00:06:32,640 Sean Aylmer: vaccination push. And I think it was like $ 200 million in 148 00:06:32,640 --> 00:06:35,110 Sean Aylmer: travel vouchers. Did people take them up? What was that like? 149 00:06:35,310 --> 00:06:37,210 Adam Schwab: Yeah. We had tens of thousands of people take them up. It 150 00:06:37,210 --> 00:06:40,180 Adam Schwab: was til September 30 and, yeah, the response was incredible. 151 00:06:40,180 --> 00:06:43,810 Adam Schwab: And obviously now vaccination's been mandated since, but at the time 152 00:06:43,810 --> 00:06:46,020 Adam Schwab: there were obviously no mandates and there was no stick 153 00:06:46,020 --> 00:06:48,089 Adam Schwab: so we tried to provide a bit of a carrot, which 154 00:06:48,089 --> 00:06:50,529 Adam Schwab: we think we did. I mean, when we launched it, 155 00:06:50,620 --> 00:06:52,820 Adam Schwab: I remember going on... I think I went on your show 156 00:06:52,820 --> 00:06:54,870 Adam Schwab: and I did a fair bit of media, and back then 157 00:06:54,870 --> 00:06:57,839 Adam Schwab: vaccinations were... There was a significant amount of hesitancy. It 158 00:06:57,839 --> 00:06:59,530 Adam Schwab: was a very different environment to there is now. 159 00:06:59,540 --> 00:06:59,560 Sean Aylmer: Yeah. 160 00:06:59,810 --> 00:07:02,670 Adam Schwab: So it's easy to look back now and think of the current 161 00:07:02,790 --> 00:07:04,200 Adam Schwab: sort of situation we live in. Back then, it was 162 00:07:04,200 --> 00:07:07,990 Adam Schwab: quite different. And so talking about the importance of vaccination and how critical it 163 00:07:07,990 --> 00:07:11,190 Adam Schwab: was to opening up, back then Australian borders were... you 164 00:07:11,190 --> 00:07:14,380 Adam Schwab: couldn't leave the country. So it was a very different situation. 165 00:07:14,930 --> 00:07:16,980 Sean Aylmer: Okay. So if you take a step back now and you look at 166 00:07:16,980 --> 00:07:19,670 Sean Aylmer: where we are, and it looks like the industry will 167 00:07:19,670 --> 00:07:22,750 Sean Aylmer: be back on its feet reasonably soon, how different is 168 00:07:22,750 --> 00:07:26,510 Sean Aylmer: the industry today, 2022, to what it was in 2019? 169 00:07:28,130 --> 00:07:30,450 Adam Schwab: It's different in some ways. I think the biggest change 170 00:07:30,450 --> 00:07:33,810 Adam Schwab: is probably the drop off in call it main street, 171 00:07:33,810 --> 00:07:35,990 Adam Schwab: high street travel agents. And you've still got Flight Centre 172 00:07:35,990 --> 00:07:38,300 Adam Schwab: still doing well. It's market cap's I think around three 173 00:07:38,300 --> 00:07:40,920 Adam Schwab: billion, very strong corporate business. They're probably focusing a bit 174 00:07:40,920 --> 00:07:44,400 Adam Schwab: less on leisure. Helloworld's dropped off significantly. A lot of 175 00:07:44,740 --> 00:07:49,170 Adam Schwab: independent agents have just been destroyed by these government policies. So 176 00:07:49,170 --> 00:07:51,990 Adam Schwab: certainly feel whilst they're notionally competitors of ours, your heart 177 00:07:51,990 --> 00:07:54,489 Adam Schwab: goes out to people who ran businesses for many years 178 00:07:54,490 --> 00:07:57,280 Adam Schwab: and has got absolutely smashed by these rules. 179 00:07:57,530 --> 00:07:59,790 Sean Aylmer: Do you think it'll be a more efficient industry I suppose? 180 00:08:00,060 --> 00:08:02,140 Adam Schwab: I think the issue with call it the high street 181 00:08:02,140 --> 00:08:05,420 Adam Schwab: agent is when you're talking about a ticket size below 182 00:08:05,420 --> 00:08:08,810 Adam Schwab: five or even $ 10,000, it's really tough. It's just tough 183 00:08:08,810 --> 00:08:10,860 Adam Schwab: that when you've got high wages, high rents, it's really hard 184 00:08:10,860 --> 00:08:13,970 Adam Schwab: to make it work. I think if you've got incredible scale 185 00:08:13,970 --> 00:08:16,560 Adam Schwab: like Flight Centre, maybe they can certainly operate some stores. 186 00:08:16,560 --> 00:08:19,890 Adam Schwab: But the average corner store, unless you're targeting the big 187 00:08:19,890 --> 00:08:23,690 Adam Schwab: basket size, really high- end customer which is a $ 10,000 plus, $20, 188 00:08:23,700 --> 00:08:27,290 Adam Schwab: 000 plus basket size, it's really hard to give the 189 00:08:27,290 --> 00:08:31,260 Adam Schwab: service that your customers want, but what they pay for. There's a push 190 00:08:31,260 --> 00:08:34,010 Adam Schwab: for the industry to move to a kind of a fee for... It's like what 191 00:08:34,010 --> 00:08:37,480 Adam Schwab: financial planners did some years ago, a fee for service. At the moment, historically travel 192 00:08:37,679 --> 00:08:40,710 Adam Schwab: agents were paid by commissions from airlines or hotels, and 193 00:08:40,710 --> 00:08:43,569 Adam Schwab: now airlines have cut commissions to basically zero and they've forced 194 00:08:43,570 --> 00:08:46,189 Adam Schwab: the agent's hand in many ways. If you're going to 195 00:08:46,190 --> 00:08:48,830 Adam Schwab: an agent, it does make sense for them to charge 500 bucks or 196 00:08:48,830 --> 00:08:52,060 Adam Schwab: 1000 bucks because they're doing a significant amount of work. We obviously don't 197 00:08:52,110 --> 00:08:55,150 Adam Schwab: do that and won't do that, but for the high street agents, 198 00:08:55,340 --> 00:08:57,309 Adam Schwab: they sort of have to and that's sort of the 199 00:08:57,309 --> 00:08:58,380 Adam Schwab: way the industry seems to be heading. 200 00:08:58,940 --> 00:09:01,510 Sean Aylmer: Adam, just quickly, you told me the story before of 201 00:09:01,530 --> 00:09:03,910 Sean Aylmer: how you're able to reach deals with hotels and resorts 202 00:09:03,910 --> 00:09:06,459 Sean Aylmer: around the world when we spoke last time. They want 203 00:09:06,460 --> 00:09:09,770 Sean Aylmer: to fill rooms, which can see huge savings for travelers. 204 00:09:09,940 --> 00:09:12,360 Sean Aylmer: For listeners who haven't heard it, can you just recount 205 00:09:12,360 --> 00:09:13,220 Sean Aylmer: how you do that? 206 00:09:13,850 --> 00:09:16,939 Adam Schwab: Yeah, so we've actually got a couple of parts of that business now. But our core business, 207 00:09:16,940 --> 00:09:19,640 Adam Schwab: which we call our flash sales business, involves us literally 208 00:09:19,970 --> 00:09:22,390 Adam Schwab: reaching out to hotels around the world, many of which 209 00:09:22,679 --> 00:09:27,070 Adam Schwab: we've got longstanding relationships with, and creating a limited- time 210 00:09:27,070 --> 00:09:31,140 Adam Schwab: campaign that gives a significant discount to customers but brings 211 00:09:31,140 --> 00:09:33,660 Adam Schwab: a huge amount of volume to hotels. It could be a 25 212 00:09:33,830 --> 00:09:38,000 Adam Schwab: to 30 to 40% off value. You'll usually get a 213 00:09:38,000 --> 00:09:41,720 Adam Schwab: discount off the price but also things like free dinners, free breakfasts, 214 00:09:41,720 --> 00:09:43,260 Adam Schwab: transfers, massages and the like. 215 00:09:43,570 --> 00:09:43,590 Sean Aylmer: Yeah. 216 00:09:43,960 --> 00:09:46,580 Adam Schwab: So customers get this incredible deal and hotels get a 217 00:09:46,740 --> 00:09:50,510 Adam Schwab: significant influx in customers really quickly, and spending across the 218 00:09:50,510 --> 00:09:54,260 Adam Schwab: whole resort in many cases. So hotels make actually a 219 00:09:54,260 --> 00:09:56,700 Adam Schwab: lot of money of Luxury Escapes, and customers save a 220 00:09:56,700 --> 00:10:00,369 Adam Schwab: lot of money. It's a really unusual situation where sort of 221 00:10:00,370 --> 00:10:02,809 Adam Schwab: both sides can win from the transaction. We just try 222 00:10:02,809 --> 00:10:05,550 Adam Schwab: to sit in the middle and facilitate it. That's what 223 00:10:05,550 --> 00:10:08,280 Adam Schwab: our historical business was. Now we've expanded to a much more 224 00:10:08,280 --> 00:10:11,980 Adam Schwab: what we call marketplace in which we have hundreds, and 225 00:10:11,980 --> 00:10:15,360 Adam Schwab: we'll have soon thousands of properties that we sell consistently 226 00:10:15,360 --> 00:10:18,130 Adam Schwab: which has a lesser discount to those flash deals I 227 00:10:18,130 --> 00:10:20,429 Adam Schwab: talked about, but it might be free breakfast and a 228 00:10:20,429 --> 00:10:22,920 Adam Schwab: free upgrade and you can buy that throughout the year. 229 00:10:23,410 --> 00:10:25,230 Adam Schwab: So hotels do that to get up top of our 230 00:10:25,230 --> 00:10:28,020 Adam Schwab: search results. Instead of paying a higher commission, like you 231 00:10:28,020 --> 00:10:30,570 Adam Schwab: would on Booking. com, we just ask our hotel partners 232 00:10:30,630 --> 00:10:33,390 Adam Schwab: to give more bonuses to customers. We take effectively a 233 00:10:33,390 --> 00:10:35,460 Adam Schwab: lower commission and customers get a bonus. So you can 234 00:10:35,460 --> 00:10:37,219 Adam Schwab: book pretty much anywhere in the world now with Luxury Escapes 235 00:10:37,880 --> 00:10:41,290 Adam Schwab: and get exclusive extras like free breakfast, free dinners, free 236 00:10:41,290 --> 00:10:44,300 Adam Schwab: upgrades that you wouldn't get on Booking. com and Expedia. 237 00:10:44,300 --> 00:10:46,890 Sean Aylmer: And just wondering whether, because of the period right now 238 00:10:46,890 --> 00:10:49,780 Sean Aylmer: and the push to attract customers, whether you've been able 239 00:10:49,780 --> 00:10:52,309 Sean Aylmer: to reach new deals with new partners, just because of 240 00:10:52,309 --> 00:10:54,100 Sean Aylmer: the lack of demand over the past couple of years? 241 00:10:54,510 --> 00:10:56,839 Adam Schwab: Yeah, we have, and it's been really pronounced. A, in Australia, we've 242 00:10:56,840 --> 00:10:59,010 Adam Schwab: worked with lot of Australian hotels we'd never worked with before. 243 00:10:59,450 --> 00:11:03,530 Adam Schwab: And really also in our marketplace business, we've now signed agreements with 244 00:11:03,880 --> 00:11:06,620 Adam Schwab: some of the world's best brands, Kempinski, Mandarin Oriental, One& 245 00:11:06,620 --> 00:11:09,939 Adam Schwab: Only. These are elite brands, Shangri- La, that are soon 246 00:11:10,330 --> 00:11:12,320 Adam Schwab: to be always on our platform- 247 00:11:12,870 --> 00:11:12,871 Sean Aylmer: Wow. 248 00:11:12,871 --> 00:11:15,829 Adam Schwab: ... with the world's best deal. So yeah, it's been a really 249 00:11:15,830 --> 00:11:19,160 Adam Schwab: good way to get to these and who historically actually 250 00:11:19,160 --> 00:11:21,330 Adam Schwab: don't really operate online with anyone. 251 00:11:21,679 --> 00:11:24,280 Sean Aylmer: I mentioned that I have actually used Luxury Escapes only 252 00:11:24,280 --> 00:11:26,160 Sean Aylmer: very recently to book a trip. You know what I 253 00:11:26,160 --> 00:11:28,980 Sean Aylmer: love about your service? It's actually the service part of 254 00:11:28,980 --> 00:11:32,210 Sean Aylmer: it. Obviously, I love looking at the pictures and we 255 00:11:32,210 --> 00:11:33,950 Sean Aylmer: go through where we want to go to and things 256 00:11:33,950 --> 00:11:36,729 Sean Aylmer: like that, but it's really easy to use. That's actually 257 00:11:36,730 --> 00:11:37,620 Sean Aylmer: the part I like most. 258 00:11:38,040 --> 00:11:41,050 Adam Schwab: Thank you. And I think what the other thing we sort of overinvest 259 00:11:41,050 --> 00:11:44,380 Adam Schwab: in is customer service, both pre and post purchase. So 260 00:11:44,380 --> 00:11:47,839 Adam Schwab: we've got a team that's virtually all Australian based, and we've 261 00:11:47,920 --> 00:11:50,730 Adam Schwab: got a couple in the US to handle for our US customers and some in India for 262 00:11:50,980 --> 00:11:54,140 Adam Schwab: our Indian customers. But if you're an Australian calling Luxury 263 00:11:54,140 --> 00:11:56,059 Adam Schwab: Escapes, you'll speak to an Australian in Melbourne or Sydney, 264 00:11:56,320 --> 00:11:58,450 Adam Schwab: or Brisbane, and often within sort of under a minute 265 00:11:58,450 --> 00:12:00,370 Adam Schwab: or two. And this is 24 hours a day, seven days a week- 266 00:12:00,570 --> 00:12:00,571 Sean Aylmer: Wow. 267 00:12:00,571 --> 00:12:02,809 Adam Schwab: ... every day of the year, including Christmas day. So I don't think there's 268 00:12:02,809 --> 00:12:05,929 Adam Schwab: any travel business globally that has that kind of level 269 00:12:05,929 --> 00:12:10,120 Adam Schwab: of 365 day a year service. So we really try and provide that really high- 270 00:12:10,120 --> 00:12:12,870 Adam Schwab: end, or even better than high- end service, but try 271 00:12:13,020 --> 00:12:14,020 Adam Schwab: to reach every Australian. 272 00:12:14,260 --> 00:12:15,760 Sean Aylmer: Adam, thank you for talking to Fear and Greed. 273 00:12:15,929 --> 00:12:16,780 Adam Schwab: Thanks, Sean, a pleasure. 274 00:12:17,140 --> 00:12:20,300 Sean Aylmer: That was Adam Schwab, co- founder and CEO of Luxury 275 00:12:20,300 --> 00:12:23,059 Sean Aylmer: Escapes. This is the Fear and Greed Daily Interview. Join me 276 00:12:23,059 --> 00:12:25,470 Sean Aylmer: every morning for the full Fear and Greed Podcast with 277 00:12:25,470 --> 00:12:27,699 Sean Aylmer: all the business news you need to know. I'm Sean 278 00:12:27,700 --> 00:12:29,030 Sean Aylmer: Aylmer, enjoy your day.