Time to get off the bus and Stray elsewhere

By SIMON HENDERY

Back in 1989, Neil Geddes and Mike Warren would badger backpackers on the streets, touting for fares to fill the single bus they ran between Auckland and Wellington.

Eleven years on, the pair's travel business has blossomed into a transtasman network of more than 40 bright green buses carting up to 30,000 holiday-makers a year around New Zealand and Australia.

Their companies, Kiwi Experience and Oz Experience, caught the eye of industry heavyweight Tourism Holdings, which this week bought out the half share of the businesses it did not already own.

The sale leaves Mr Geddes and Mr Warren free to concentrate on developing their two-year-old European backpacker venture, Stray, which already transports 18,000 tourists a year and has a staff of 35.

When they arrived back in New Zealand in the late 1980s after time overseas, the two 23-year-olds were convinced there was money to be made from a bus service catering specifically for backpackers.

"We used to live in the Parnell YHA because we couldn't afford accommodation," Mr Warren said.

"We shared a dorm room there and chased all the backpackers around trying to get them on the bus."

They also drummed up business in downtown Auckland's QEII Square, a popular backpacker hangout.

Backpackers warmed to the concept of "a cross between being on a tour and being on an express bus," Mr Geddes said.

"The theory we had from the start was it didn't matter what the bus was like as long as it didn't break down and had a good stereo."

The concept worked and Kiwi Experience's fleet of buses grew rapidly.

The company now employs up to 80 staff in Australia at peak times and 50 in New Zealand.

"Our big thing was we knew we had to go offshore to get the international travel agents to pre-commit to present our product as an option for travellers," Mr Geddes said.

"Mike spent literally six months a year overseas banging on doors trying to convince international travel retailers to sell our product.

"Initially they weren't even slightly receptive, no one wanted to deal with backpackers ... [now Kiwi Experience] is one of the major 'ground' or 'surface' products sold by retailers around the world."

Backpackers make a considerable contribution to total overseas visitor spending in New Zealand. While they tend to spend less money per day than other tourists, they stay in the country longer.

Tourism Holdings bought into the company in 1995, investing the cash required to move across the Tasman and establish Oz Experience.

Tourism Holdings managing director Dennis Pickup says Oz and Kiwi Experience fit well with the company's other operations, which include campervan rentals, buses and attractions on both sides of the Tasman.

"Both [Oz and Kiwi] have the ability to deliver business down the line to our other operations," Mr Pickup said.

Meanwhile, Mr Warren and Mr Geddes are eager to focus on Europe, and a new internet-based development they say will enhance Stray's bus and rail-based travel network in Europe, Ireland and Britain.

The pair "have been sitting on quite a big technology idea which we think is going to have a huge impact on our business," Mr Geddes said.

They say the application will link travellers and travel agents, with benefits for both.