It seems a true entrepreneur never actually retires.
For confirmation, see Hugh Boyle, the unretired, indefatigable and enterprising Scotsman whose rocking chair isn't exactly a rocking chair - it's two upstart companies in the always stimulating travel industry.
Boyle retired with a boatload of cash in 1998 in his mid-40s when he and his brother John sold their U.K.-based dot-com travel business, Direct Holidays, for about $100 million to Airtours PLC near the height of the Internet boom (Hugh had a 25-per-cent stake in Direct Holidays). But after Boyle "retired" to Ottawa, the entrepreneurial wheels began to spin again and in 2000 he founded Go Travel Direct, a company that has taken the industry by storm with a bold advertising campaign that has succeeded in ruffling some feathers.
When Boyle, the self-described "black sheep" of the travel industry, found himself being shut out in his bid for airline seats for his direct-sell travel business, he hit the runway in 2002 by starting Canadian carrier Zoom Airlines to service the original business and provide alternative transatlantic service between Canada and the U.K.
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| Ashley Fraser, Business Edge |
| Entrepreneur Hugh Boyle is charging down the runway at full throttle with Zoom Airlines and Go Travel Direct. |
Now 53, Boyle is chairman and president of Go Travel Direct, chairman of Zoom Airlines and majority owner of both privately held companies.
As for retirement, that's about the furthest thing from his mind these days.
1. What are your memories of a boyhood in Scotland?
"The Glasgow area probably wasn't the easiest place to grow up. It made you very tough because it's a tough place. But I had a great family and enjoyed myself. I have one brother and three sisters. My father was a grocer. We had a fairly privileged background, but it wasn't really all that entrepreneurial. I left school at 15. I hated it and I didn't do very well at it. I left, much to my father's annoyance. Everyone wants their children to go on and be successful, to have the best education, but sometimes university is not always the right thing for everybody and I think we preach (at) children too hard to make sure they go there."
2. What did you do after leaving school?
"I went off to train and work as a chef. For three years, I went to (chef's) college one day a week, and then I went to the college full time for one year. When I qualified to work as a chef, I went to work in Spain. Then, I got a job in London working at very large hotels and doing banquets. I ended up being a personal chef to a very large industrialist (Robert Maxwell), who had very influential people come along, like Margaret Thatcher (former British prime minister) and other politicians and industrialists. That experience was a little boring, to be honest, because there wasn't always a lot of work. I was always used to working hard but when he was out of town, I sometimes wouldn't have any lunches to cook for two or three days. That's probably why I left in the end. A lot of people can sit around and do nothing, but I couldn't do that."
3. You then moved into the travel business. How'd you get involved?
"My brother (John) was starting up a company (Falcon Holidays) and I went along to help him out for a couple of months. I ended up staying. I liked it and it was obviously a complete change from working in kitchens. After 10 years, we eventually sold it to a public company that is now called Signature Vacations. Then, my brother and I set up Direct Holidays - he had the biggest share holding. I did the work (as CEO) and he owned the equity."
4. To what do you attribute the success of Direct Holidays?
"It was a matter of being in the right place in the right business at the right time. At the time, direct fare was taking off in a big way in the U.K. It was also partly due to having great people to make it happen. When we sold the company, it was a great time to sell, when people were paying very high valuations. Direct sales dot-coms were all hitting the big time. Timing is all in business."
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| Hugh Boyle |
5. After that sale, you retired but not for long. Were you having a lousy time?
"Yeah, I guess that's one thing I failed in, retirement. It was difficult doing nothing for a couple of years. But then I started to do a little work, although I didn't quite envision getting involved as much as I am at the moment. You get a bit stale not working."
6. What motivated you to start Go Travel Direct in 2000?
"I saw an opportunity in Canada where nobody was selling direct, and direct sale was the way things were moving because of computers and the Internet. Here in Canada, we had no direct-sale tour operators and I just believed there was a huge opportunity. And nobody was doing anything about it. Zoom (Airlines) was started because we couldn't get anyone to sell us any aircraft seats because we were the black sheep of the travel industry in Canada - and we still are. There are not many direct-sale (travel) companies here. Transat, Signature (Vacations) and Conquest (Vacations) all sell through travel agents and all these travel agents are owned by mom and pop (businesses) and there are not many chains around. And the chains that are there are franchised. Consequently, they don't want to have direct sale and a lot of pressure was put on airlines to not sell to us. I went to Canada 3000 where I knew the man who owned it, Angus Kinnear, and he wouldn't sell us any seats because of the pressure from travel agents and tour operators. I went to Royal (Airlines) and they wouldn't sell us any seats. I went to Sky Service and CanJet and they wouldn't sell us any seats. So at that stage, I got so frustrated and annoyed that I said, 'Well, you know what, the only thing I have to do here is set up an airline' and that's what I did."
7. What's it like being the "black sheep" of the industry?
"It's surprising how difficult it has been in the tour operating world to operate here. The public don't get the best deal simply because they are paying more than they need to. Things are slowly changing, but very slowly. But we just get on and do our business. We didn't become part of the infrastructure of the travel agent and tour operator world. We still have lots of problems with companies not selling to us because they don't want to be blackmailed by tour operators."
8. What's the solution to that issue?
"We've taken care of the problem with flight seats because we own our own airline, but I guess the solution to the problem is to buy some hotels. That's the next step in becoming completely self-sufficient. We have taken on hotels in the Caribbean to run. We ran a hotel and leased it last year so we've had a little foot in the door. But it's not what I want to do, because I'm not a hotelier."
9. Is the issue of direct sales mainly a unique Canadian problem, or is it a global problem?
"It's definitely a Canadian problem. If you take Signature Vacations' parent company, they have their own direct-sales company in the U.K. SunQuest has Direct Holidays in the U.K. (his former company), which is now the largest direct-sales tour operator in the U.K. But they don't have one in Canada. They don't have one because they know the problems that they'll have. But that will change.
"I don't know how many years it will take, but we have to understand that life is changing and the travel agencies' days in the main are numbered. Five years ago, if you were going from Edmonton to Vancouver, you would go to a travel agent for your ticket. Does anybody do it now? No. Because you can go on the 'Net and find the best prices and people are comfortable doing that. But it's still a long way from what is being done with package holidays. It will happen, because at the end of the day, it's the easier way. The Internet can give you more information. You can see streaming videos and you can get much more information than you'll get from your travel agent. Travel agents will always be around for somebody who wants to put together a complicated itinerary. If you wanted to go trekking in the Andes and then go on to Australia, then they're the people to help you. But when you want to buy a straightforward package to Cuba or the Dominican Republic, they (travel agents) don't really offer you any value."
10. What's the response been like from the industry to your controversial 'Say goodbye to travel agents' ads?
"Well, Maritime Travel in Halifax is trying to sue us for our advertising because they don't like it. We have Transat trying to send us letters saying to get rid of it. We just ignore them all and put them in the bin. We do what we do and that's what we do. You know, the law's very clear in Canada that the public have the right to know. As long as what we are telling is factually correct and we're not fabricating anything, then the public has the right to know."
11. How do you see the travel business changing in the future?
"Many people will make their own packages themselves. They won't buy a package holiday. They will buy a flight and book their own accommodation. Package holidays are only successful when you have a unique part of the package that you can't buy direct. If you're going to Cuba and you can't buy a flight-only or you can't buy accommodation-only, then you need to buy a package to Cuba. But we have seen, for example, people doing their own thing on travel to Florida. Once these big hotel chains start to market their beds and once the airlines start to market their flights, the public is very bright and they'll do their own thing. I don't see it changing overnight but that transition will be significant within four or five years."
12. What sets Zoom Airlines apart from other airlines?
"Zoom Airlines has a little bit of a niche in its long-haul (flights) to Europe. What makes us different here is our flexibility. You can buy a one-way ticket. Today, if you were going to buy a seat with Air Canada or British Airways going to London, you would pay more for a one-way (ticket) than a return (ticket). Also, you couldn't fly into one airport and out of another airport unless you pay a lot of money. In essence, you can fly out of Vancouver to Glasgow and then from London back to Calgary, if that's what you want to do. Given time, British Airways, Air Canada, United (Airlines) and other airlines will actually change the way they do things (on transatlantic flights). But that's where they make their money at the moment."
13. What are your plans for Zoom U.K. (a new division of Zoom in the process of being launched)?
"It will operate under the British Aviation Authority. That will double our business. Zoom has made a profit every year, apart from our initial setup year. We've just had a funding in which a portion of equity (a 7.5-per-cent stake) was bought by the Bank of Scotland. I still own the majority of the shares. I own 70 per cent of the airline and my brother (John) owns 18 per cent. We brought in the Bank of Scotland and not just because we wanted the money. Sure, we like the money, but they can help us with our business in issues such as currencies, hedging of fuel and help us look at things in different ways."
14. What's your reaction to the recent decision by CanJet Airlines to discontinue scheduled flights?
"I'm disappointed because I use CanJet a lot and competition being taken out of the market is not a good thing. I'm sad that they didn't make it. I thought things were getting better in the aviation industry. I thought there were more people travelling. I really don't know what the reasons are because the (CanJet) flights that I went on were reasonably full. It doesn't really affect us in any way. The domestic market in Canada is very, very tough and we're not in it for that reason."
15. What are your thoughts about the way Ace Aviation (owner of Air Canada) has turned around its operations since going through its restructuring?
"It's a very good airline, but I think they have a lot of labour problems. An airline is a service industry that you can't replace with computers. You still have to have check-ins and you still have to have flight attendants and pilots. It's a very personal industry and the human element is an enormous part of that and they have a lot of issues on that front. It isn't that they don't try very hard. I don't like the idea that we don't have more choice in Canada and they try to be the only major airline in Canada. I don't think the public likes that. They have tried very hard to snuff out any competition. It's incredible that the government is allowed to give (Air Canada) some 83 per cent of market share within Canada. That to me is clearly running a monopoly and that's not what government should be allowing. WestJet (Air Canada's main competitor) is a great airline and I'm glad they're successful. It keeps Air Canada on their toes. But the thing with WestJet is that you get so large and always then become part of the establishment. We need more players."
16. What was your initial response when you heard about the foiled terrorist plot that targeted flights from the U.K.?
"Security is an issue we live with. It's a sad world that we live in today that people want to blow up airlines and kill innocent people. I find it very difficult to come to terms with that issue. I'm just grateful that we have the services and security that might foil these plots and I think there's been a lot more than we hear about. It's just an awful situation and we shouldn't allow these people, even if they don't succeed, to keep us from flying and going somewhere because that's their objective. But necessity is the mother of invention and as these things happen, we get more clever. Security at airports has gotten much better. I mean, we have to put it into perspective. Air travel is safest mode of transport. Apart from these terrorist threats, flying is a very, very safe way to travel. If I'm going from Ottawa to Florida, I'm safer in a plane than I am driving."
17. How is Go Travel Direct faring financially?
"It's up and down. We've had profitable years and unprofitable years. Last year was difficult because of overcapacity with far too many holidays sold. It goes from being profitable to losing a little money, but it's nothing significant. We're in the travel business for the long term and we're only a small niche player and operate from only three airports - Ottawa, Montreal and Halifax. I've invested $10 million (in Go Travel Direct and Zoom Airlines). It's not something that I spend that much time with. I'm not working every day. I'm not that type of person."
18. Have you considered taking your companies public?
"I've considered it and may do it some day, if we thought the timing was right and it was a good thing to do. It's not that we don't have funding or venture capital. Therefore, we're a little bit more relaxed about it. It's not a plan, but it may be a reality."
19. What do you think has made you a successful entrepreneur?
"I'd like to say it's luck, but that's probably not what you want to hear (laughing). In this industry, it's the old cliché - it is dealing with people and dealing with issues - and people make it happen. And you have to work with them and understand them and give them leadership. Never ask them to do something you wouldn't do yourself, that's what my mother told me. My mother (Kathrine) was a great person. She used to say things like, 'Be nice to people on the way up because you'll meet them on the way back down.' " 20. There are obviously a lot of headaches in the travel and airline industry. How are you enjoying it these days or are you looking forward to retiring again?
"I sure am enjoying it. The day that I stop enjoying it is the day that I stop working. That's the key to being successful, being able to enjoy what you do. As you move forward in business, you see opportunities and you try to capitalize on them. I'm trying to take more time off and take life easy. I enjoy myself. My wife and I do a fair bit of travel and I enjoy good food and good wine. I take life year by year and I don't plan too far ahead."
Hugh Boyle
* Titles: Chairman, Zoom Airlines; chairman/president, Go Travel Direct.
* Born/raised/age: Motherwell, Scotland; 53.
* Family: Wife Christine, two children.
* Education: High school (did not graduate).
* Career: Boyle worked as a chef for seven years before entering the travel industry in 1982 with U.K.-based Falcon Holidays, which was later sold in 1992. He was CEO and part owner of U.K.-based Direct Holidays until it was sold in 1998. He started Go Travel Direct in Ottawa in 2000 and Zoom Airlines, also based in Ottawa, in 2002.
* Business idol: British airline tycoon Sir Freddie Laker.
* Favourite pastime: Travel.
* Favourite travel destination: Sydney, Australia.
* Favourite dish: Beef Wellington (his own recipe).
* Drives to work in: BMW SUV.
Go Travel Direct
* Profile: Go Travel Direct, founded in 2000, is a Canadian direct-sell travel business that specializes in all-inclusive vacation packages and flights.
* Destinations: The company provides travel service from Ottawa, Montreal and Halifax to Cuba, Dominican Republic, St. Martin, Mexico and Florida.
* Website: www.gotraveldirect.com
* Head Office: 380 Hunt Club Rd, Suite 200, Ottawa, K1V 1C1.
* Phone: (613) 231-3344.
Zoom Airlines
* Profile: Founded in 2002, Zoom is a Canadian airline that provides scheduled and charter services out of eight Canadian cities - Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa, Montreal and Halifax - and has scheduled flights to London Gatwick, Manchester, Glasgow, Cardiff, Belfast and Paris. Chartered flights also go to Caribbean destinations.
* Big Deal: Zoom recently sold a 7.5-per-cent minority stake in the company to the Bank of Scotland and is in the process of launching a U.K.-based division that will have expanded services to non-Canadian destinations.
* Website: www.flyzoom.com
* Head Office: 380 Hunt Club Rd., Suite 200, Ottawa, K1V 1C1.
* Phone: (613) 235-9666.
(Gyle Konotopetz can be reached at gyle@businessedge.ca)








