Each year at about this time, some 70,000 travel folks from around the world descend on London for the industry’s primary trade show. Exhibitors range from the huge presence of the Spanish and Italian tourist boards and their industry representatives, to the considerably smaller delegations from Uzbekistan and even Palestine.

London’s Heathrow Airport is facing a rather interesting offensive at the moment.

Much of the world has changed over the past few weeks; hundreds of thousands of lives have been irreparably damaged, families’ plans and hopes thrown into chaos and relationships between governments, business and the populations at large fractured by a deep distrust.

So you think that you had it bad; trying to prise a refund of a fuel surcharge for a flight that you never took, or attempting to squeeze even the acknowledgement of a refund department at Ryanair.

Well, think yourselves lucky.

A Japanese business man is trying to obtain a refund of $21 million from the US company Space Adventures. He claims that his space flight was cancelled at the last minute to make way for an American Space Tourist who coincidentally is a recent investor in the endeavour.

After spending weeks training for the Russian flight he was yanked off the list only a month before departure. His kidney stones were quoted as the reason, a condition that had apparantly been known to the company all along.

I realise that sometimes my work requires me to take one for the team; go above and beyond the call of duty. Usually not, but sometimes yes.And so it was that I went to Berlin's Ost Banhof last Thursday morning to get on a train. Not just any train, but the inaugural run of The Danube Express, a new private train based in Budapest, and offering rather splendid journeys of three or four days to Brussels, Berlin/Krakow and Istanbul.Although not the Orient Express by name, it is again possible to ride the rather luxurious rails from Western Europe to the gateway to Asia; and with the addition of a ticket on Eurostar from London, one can again emulate Agatha Christie (or Hercule Poirot) as you journey through Europe in some high degree of comfort.Cabins are offered in two styles. Deluxe (with en suite facilities and lots of room) or Classic (standard sleeping carriages, but plushly upholstered and comfortable - shared facilities). There is a fine restaurant car, and a lounge car complete with nightly pianist and a good selection of Hungarian wines on offer.The journey includes stops in a number of interesting places, in our case Dresden (its reconstruction is truly remarkable) and Kosice (an unassuming Slovakian provincial town), and each journey is slightly different offering a broad selection of regions to interest any traveller. The pace is good, the structure is gentle.I love trains, and to spend a couple of days riding through Germany and Slovakia in such fine company was a real treat. For travellers starting to think of next summer's journey to Europe, three days spent exploring from the comfort of the Danube Express would not go amiss. 

One of the most enjoyable parts of regular travel (apart from a cosy familiarity with employees at baggage-claim centres around the world) is the number of interesting people that one meets. Further, it is a constant eye-opener to realise what some of these folks do for a living.Among the many occupations that I admire is that of editing and producing newsletters. To come up with new and interesting copy month after month is no easy task, yet there are a wide number of publications that do this, and continuously feed the travellers' soul.In Iceland I had the opportunity to meet Jeff Blumenfeld, the publisher of a marvellous piece called Expedition News. This journal is a terrific compendium of some of the more abstract and extraordinary expeditionary travel and travel-related research currently being undertaken.And for those of you with curious and inquiring minds, I would highly recommend that you spend a few minutes in its company.   

This is not a phrase that you hear here very often, but this time out national flag carrier has listened to consumers, realised the difficulty that their pricing presentation has caused, and done something.In the future, their fuel surcharges will reclaim their proud and rightful place in the fare payable for passage; this should herald the end of the extraordinary distortions that have been the hallmark of airline pricing for all too long.There are, of course, many surcharges that are completely out of the airline's control, and these airport levies will still be an additional cost. The principle, however, of the cost of fuel being an integral part of the price of the seat is a good one, and they are to be applauded for taking the first step.Thank you Air Canada. 

Don't get me wrong, I love Greenland, and really enjoy working with their travel industry; however, each year (for the past twenty or so) I have become enthused by their delegates to the annual Vestnorden Travel Mart (concluded this week in Reykjavik) only to find that they leave or the industry really does not want to play.A good case is Air Greenland. For many years this "flag carrier" has been almost impossible to work with. Their flight schedules are "on again / off again", their pricing system cumbersome, their support for tour operators non-existent in practice but strong in theory.And like a junkie, each year I believe them, and head back to sell their products with the same sense of euphoria.This year, I hope, it is different.Air Greenland have a new CEO, Michael Binzer who I have known for many years. Perhaps the fact that his wife is from Iqaluit offers hope that we may again have a connection to the island from Canada! Their CFO and Director of Sales are new, and both bright, enthusiastic and very, very aware of the world around them. They are interested in pursuing a broader distribution of their programs, and looking at new routes. Perhaps even offering 30 seats twice-weekly between Iqaluit and Nuuk.This would be great.There appear now to be four flights during the summer from Iceland to Greenland, avoiding the long-haul over to Copenhagen and back, and assuming that their schedules are well coordinated and the pricing reflects market demand, 2009 looks very good for travel to one of the world's last frontier destination.If you are interested in the phenomenon of climate change and its concurrent effects on Arctic communities, Greenland is the place to go and see for yourself; and now, 2009 looks like the best time to go.

Airports are distinctly odd. I am not referring to the fascination of departure signs hinting at a wide array of distant promises, and thousands of travellers anxious to get to who knows where, but to their tenants.To hear the airlines speak, it is impossible to squeeze a single dime in additional fare from their clients; these same clients who will spend with gusto as soon as they reach the airport. I am at Copenhagen airport as I write, and all around me are the top designer stores, Bvlgari, Hermes, Gucci and more all bursting at the seams!It is ironic, of course, that many airports make immense profits. The secretary general of IATA (tellingly a senior Alitalia executive) pointed out recently, that is an era that airlines were to loose a combined $10 billion, the world airports would turn a substantial profit from these very same airlines' clients! It is odd, and perhaps sustainable, perhaps not.In any event, it makes Richard Branson's decision to be a part of the new ownership of London's Gatwick airport appear very clever. If he can't losen up an additional $10 per ticket that the airlines need to thrive, he will sell them CDs, perfumes and bottles of gin.

Imagine if you will, a Land Rover mated with a Sherman Tank, and then taken to a posh refitter to ensure the comfort of its passengers. Well this is the vehicle that I have been driving all day, and what a day it has been.Anyone who thinks that they have seen everything, and have had every imaginable experience known to man has not driven such a jeep (38" tyres and an air intake raised six feet off the ground to allow it to run through raging rivers). A day out in the Icelandic countryside will bring the spark back into anyone's life - guaranteed.We left the hotel early this morning... drizzle, cloud and poor visibility. Within a few minutes we are bouncing along Thousand Lake Road - a name that really conjures up the truth - not really a road, but a series of tiny lakes connected by a barely discernable path of gravel, small rocks and lumps of lava. Bouncing through the water (boys are so pathetic), watching it ride up and over the "car" was amazing, and as our journey progressed and we headed further and further away from roads and people the fun got even more intense.Driving these astonishing vehicles over lava, rocks, through rivers, under volcanic lips, through black sand and intermittently pouring rain was wonderful. Not the sort of holiday to appear on the covers of mainstream brochures, but a heart-pounding and rejuvenating experience none the less.And en route, we learnt something. Stuck way back in the hills is a brand new (will open in 2015) power station that heats Reykjavik with the country's famed geothermal energy. It is an extraordinary process; basically water that lies at a depth of 3000m and is 300C is under too much pressure to boil. It just remains very, very hot. By drilling holes into the water system, the pressure brings the water to the surface where it turns to steam, and this steam is used to drive generators and provide electricity for the power grid. There are many more details, off shoots (superheated energy flowing through massive heat-exchangers in a manner that I didn't quite grasp, but nevertheless effective), and some breathtaking statistics.It opens in seven years, yet already provides 160 megawatts of power; a considerable percentage of Reykjavik's 280 megawatt needs. And so onAnd off we went - through more rivers, over more mountains conquering and mapping new territories and finally ending up at Sigfus's summerhouse. Where we are now, cooking dinner and looking forward to what surprises Iceland will throw my way tomorrow. What a fine country. And the company that makes all this possible, and dreams come true? Iceland Experience!

If there is one place that can be relied upon to provide good food it is Iceland. Landing in Reykjavik this morning was a stark reminder that the Fall is really only a little while away. 8C, rain and cloudy skies. However, it is always nice to be back here, and having a direct flight from Toronto really made the journey easy.I  met a good friend in Reykjavik, Clive Stacey owner of the UK-based Discover The World tour operator, and generally find chap, and together we headed out over the hills to a small town on the south coast called Stokkseyri where there is an absolutely marvellous restaurant called Fjorubordid. I had been here before, but for dinner, and it was dark, but lunch was great and I could actually see the ocean. The restaurant in question serves lobster (really, smallish crayfish), and little else; and they do is so well. Sauteed in butter, some spices anad accompanied by a cracker of a white wine, it shook jetlag away immediately.And with the resent devaluation of the Icelandic Kronur (almost) reasonably priced, even for a Winnipegger. I would highly recommend anyone travelling to Iceland to get here; it is only an hour's drive from Reykjavik, situated in a perefect region for sightseeing, eating and marvelling at this extraordinary country.And now, even though the rain is coming down, the clouds are thick and the outside temperature barely in double figures I am going swimming outside ...  thermally heated pools are a wonderful invention.And so a weekend of exploring the countryside with friends before the work starts on Monday and the 2009 Vestnorden Travel Mart. It is the annual congregation of tour  operators who specialise in this region and an opportunity to meet with hoteliers, local operators, airlines and other elements of the tourist business from Greenland, Iceland and the Faroe Islands.It is a big part of our business, and the meetings will let us know who is doing what, and what fabulous new programs we can bring to the market in North America for 2009. Keep watching this site!  

The media today is full of tales of one of the largest collapses yet in the global travel industry. The UK-based XL went into administration today leaving over 85,000 passengers stranded, and hundreds of thousands more without the prospect of their winter vacation materialising.It is interesting timing that this comes in the wake of our federal government's feeble attempt to introduce a national Bill of Travellers' Rights to our aviation industry, and it once more highlights the fragility that personifies much of the travel industry.The industry is globalised; this simple fact means that the collateral damage from XL will spread to affect, to some degree, travellers the world over. British holiday makers will have no holiday; hotels in the Caribbean will now be faced with a drop in their winter occupancy rates - some dramatic and perhaps fatal, some less so. Local restaurants in communities favoured by XL clients will sell fewer meals and local tour guides will have fewer vacationers to guide.We are entering uncharted territory in which size counts; but only to a point. Small specialist companies will do well, and even thrive in the market today; huge behemoths will prosper simply due to their size. Mid-sized companies trying to work in the highly commoditised world of sun-destination package holidays will find themselves operating on increasingly thinner margins and with increasingly stretched suppliers. Their pockets had better be deep.Some may think that the fallout from a collapsed holiday company is a number of newly discounted programs as the affected suppliers scramblle to recoup anything they can from sell-offs. In the days before $100 per barrel oil this may have been the case; in today's world, however, there are simply not the aircraft available to carry passengers to the empty hotels. Airlines are reducing their capacity to ensure profitability, they will not be likely to roll out a furloughed aircraft to ferry discount passengers to a newly empty hotel. And if one does, be careful, be very careful.Canada still has no consumer protection schemes other than those operating in three provinces, and private insurance companies are loathe to absorb the risk of a major default. We need to see a passenger-paid program that will offer protection in the place of a default. This program would involve every ticket or travel product purchased from a licensed and qualified agency incorporating a small insurance component, and compensation being paid from this pool. Travellers pay for protection and passengers are protected. A program supported by contributions solely from the travel industry is unfair to the prudent, and only encourages risk-taking; a program designed to be financed by those who are at risk is fair, and the only long-term, sustainable solution. And until then, it is, as always, buyer beware.

Airline points have become the crack cocaine of the travel world. Fly, buy dinner, fill up with gas and you get rewarded with scrip called rather optimistically "Frequent Flyer Miles". They come in a variety of guises, and like every other currency have extremely variable exchange rates.It seems that the most valuable part of the airline is the division that gives stuff away for nothing, and therein lies the rub."Points" are a currency; nothing less and nothing more. Airlines sell them to a variety of partners for (say) 4 cents each, and then sell seats back to flyers for these points. Profitable and a fine system.Until the money supply gets out of hand, and inflation strikes. While the various schemes have yet to reach Zimbabwean levels, there are some distinctly nasty clouds on the horizon. Airlines often churn points out by the million; a recent financing deal between United and their primary bankers involved the exchange of hundreds of millions of United's Mileage Plus. These points are dangled in front the banks clients as lures to some commercial activity, and hey presto, there are thousands more consumers dreaming of palm trees.Think, however, of the problems caused by increasing the money supply (points) while simultaneously reducing the number of seats available on the airlines' systems - a 20 million drop in available seats throughout the North American system compared to last year.How will the carriers respond? Gently, I think, but in the traditional way; prices will rise. Delta announced their increase last week, by offering three levels of reward seats; by increasing the number of points that you use, they will open up more seats. Fair enough in a way, but a price increase by another name.My advice? Book early, and remember that there is only a small fee (currently $75) to cancel and put your points back; book next summer's trip to Europe now, and think of the $75 as buying an option. Use them up as fast as you can, because their value will shrink away in front of your very eyes.Unless you want a kettle, of course. Exchanging airline points for kitchen equipment or haberdashery seems odd to me, but there will be increasing pressure to do so.

It seems that there is a new security blanket coddling travellers, and this is that credit card companies will automatically reimburse ticket-holders on bankrupt airlines. I am not altogether sure where this idea comes from and to whose benefit its promulgation lies.I am, however, fairly sure that the truth is extremely complex, and that an automatic refund is out of the question.Some credit cards carry a variety of insurance benefits, and it may be that coverage is included in this package; it may be that credit card companies like the idea of such a masterful position and in the absence of a huge collapse have paid off customers, writing these ex-gratia payments off to goodwill.There is a thought that reimbursement is due to the "non-provision" of service for which an intermediary company (viz: the credit card) has taken payment. Perhaps; but perhaps not.Imagine, if you will, a hypothetical bankruptcy of United Airlines or British Airways. Unlike Zoom or Jetsgo, each of these august carriers will have hundreds of millions of dollars of such prepaid tickets. It is unthinkable that the credit card companies will have the money to back-stop a failure of that proportion.Each merchant for a credit card company is obliged to post a bond, if required, that reflects the potential of default. It is from these monies that reimbursement flows. While a small tour operator (or airline) may be required to post a bond of say $1 million, it is inconceivable that giant carriers would be able to post such a bond to cover all of their unflown customers.There are insurance companies who offer "default" coverage; this protection, if it still applies to airlines, has significant limits, usually to a maximum of $2 or 3 million per occurrence. Not much on a per person basis if 15,000 passengers are caught.The whole question of consumer protection will again raise its head, and it is an area that should be investigated thoroughly. It is not a solution to simply establish a fund that will allow weak companies to sail close to the wind secure in the knowledge that strong companies will effectively bail them out.In the end, protection is the responsibility of the purchaser; they should, however, have some assurance that multi-million dollar industries like travel have some vestige of financial oversight.The travel industry does not. It is time that it did. 

Despite soothing words from the federal government about the implausibility of another airline dying in the short term, I would tend to fret.Simply put, there are too many seats in the sky serving too few passengers, all lof whom believe that they deserve a very low rate. The airlines' pricing practices have been so peculiar over the past few years that nobody believes any number at all; travellers know the price of everything and the cost of virtually nothing.Even today, Air Canada are publishing fares from Chicago to London (via Toronto) for $276 return! Fees are extra, of course, but only in very small print. How is any traveller expected to have sympathy for an industry that perpetually cries foul yet persists on marketing its product at the same price point as a cheap table?Air Canada are not alone; China Easter will fly you from Shanghai to Johannesburg (and back) for $650, British Airways publish a one-way fare from London to Madrid for $6 (just shy of the Air Europa $10 offering), and even the rather upmarket Swiss will carry you back and forth between London and Santiago (Chile) for under $1000.So they go bankrupt; is it surprising?The really surprising thing is that so many airlines who preach the mantra of free enterprise have been propped up by adoring governments for so long that nobody believes in failure and acts surprised when it happens. Why are we surprised that Zoom failed when we have been witnesses to a parade of considerably more robust carriers through the bankruptcy courts?And why do we not listen to warning signs?The mathematics are simple; if a product costs you more to deliver that you can generate in sales, you will fail. The only variable is timing, and that is up to your backers. One may have deep enough pockets to survive the lean times until  the demise of several competitors allows one to breathe more easily. Or one may not.There will be more failures as the economy slows, travel is cut back and airlines need deep pockets, strong alliances or powerful niche markets to rationalise their services. Without at least one of these assets, I would not relish the role of and airline comptroller this winter.