Shake-up sees Base Travel retail brand axed

New Recreational Tourism Group CEO Nick Thomas has made a raft of personnel and strategic changes to Base and Backpackers World Travel in a bid to improve operational standards in the group’s hostel network and raise the profile of its retail arm among guests.  

Chief Operating Officer, New Zealand, Peter Webster becomes Director of Operations, with responsibility for all hostels in Australia and NZ. Chief Operating Officer, Australia, Mark Sleigh is now Director of Business Development, identifying and opening new properties and developing the sales strategy to fill them. NZ Product and Operations Manager Justine Browne has left the company.

Thomas said Sleigh will be looking at all capital cities in Australia, with Cairns and Perth high priorities, along with extra capacity in Sydney and Melbourne, and Darwin “a consideration”. He said more capacity in the gateway cities was needed to allow Base to “funnel people up the coast”, but the cost of acquisition would have to be appropriate to the business.

“With real estate values so high, you have to be sure you can make a profit from $20 beds,” he added.

Meanwhile, Jeff Skinner is the new General Manager of Backpackers World Travel. Skinner, whose previous roles include a stint with Flight Centre, will roll out a new, single-brand strategy for the retail chain which, Thomas admitted, was “not in very good shape, but we do have very good people”.

The Base Travel retail brand within the hostel network will be dropped, with all retail outlets rebranded Backpackers World Travel, but with a facelift to give them a closer association with the hostel brand. Thomas said: “We will run a single retail brand and leverage the customers in the hostels to give it more exposure. Base Travel was hidden from view and, if you’ve got 4,000 people staying with you every night, you should be able to leverage them.”

He confirmed a new point of sale system should be ready for testing within the next four weeks, with the same system powering the Backpackers World Travel website. Thomas said it was vital to have a strong online presence in the youth market, but denied this would inevitably lead to shop closures.  He added: “If the end point is you only have a website, then so be it, but I doubt that will happen. People still want advice, the stores will stay relevant.”

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