Flight Centre Calls for Reversal of Government Decision as Australian Campervan Industry Sees Surge in Demand
Flight Centre, a leading travel agency in Australia, is urging the Albanese government to reverse its decision as the demand for campervan rentals surges in the country. Graham Turner, the CEO of Flight Centre, recently announced a national advertising campaign to put pressure on the government to reconsider their stance.
According to Flight Centre’s Managing Director, James Webster, there has been a significant increase in demand for campervans, with many retirees and backpackers seeking to explore the country. While households are cutting back on discretionary spending due to the rising cost of living, Grey Nomads and backpackers are embracing the freedom and adventure of campervan travel.
Despite the growing demand, Flight Centre’s vehicle fleet is currently operating at only 60 percent of its pre-pandemic capacity in Australia. To meet the rising demand, the company plans to conduct commercial trials of electric campervans starting in December. However, a full transition to electrified vehicles in the industry is expected to take years.
The campervan industry is benefiting from higher interest rates, as many retirees now have improved cash flow from increased income on their deposits and retirement investments. Additionally, backpackers, families, and Grey Nomads are motivated by a sense of revenge spending after missing out on travel during the COVID-19 pandemic.
THL, the parent company of Flight Centre, merged with Apollo Tourism & Leisure in November, overcoming the challenges posed by the pandemic. The Australian Competition and Consumer Commission closely monitored the merger and required the divestment of 200 motorhomes owned by Apollo to rival company Jucy.
Mr. Webster revealed that THL is currently building electric campervan prototypes on a Ford chassis, with an estimated range of about 250km before requiring a charge. The first trials will be conducted in New Zealand, and selected customers will be invited to test them. The goal is to make EV campervans available in Australia by 2024. However, the transition to electric vehicles in the rental industry will require time, as the technology and economics are more advanced in general use vehicles than in light commercial ones.
Mr. Webster acknowledged that campervan renters are more likely to hold environmentally friendly beliefs, but recognized the practical challenges involved. Despite this, he affirmed that the industry will eventually shift towards electrification.
The trend of catch-up travel driven by the aftermath of the pandemic is difficult to predict in terms of its duration. Nonetheless, there is a clear shift in people’s desire for new experiences. Mr. Webster believes that people’s mindset has changed, and there is a growing preference for seeking unique and enriching experiences through travel.
In conclusion, Flight Centre is pushing for the Albanese government to reverse their decision in light of the booming demand for campervan rentals in Australia. The company is also planning to introduce electric campervans in the future to meet the industry’s evolving needs. As travel rebounds and people seek new adventures, the campervan industry is poised for growth and transformation.
