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Home / Business

Taste for travel a ticket to local success

27 Aug, 2004 12:40 PM5 mins to read

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By CHRIS DANIELS

Chris Paulsen is the charismatic leader of a company that is one of the biggest players in an industry many think is heading in the same direction as buggy-whip makers were in the 1920s.

He has created a company worth tens of millions, but doesn't work past six at
night and has his weekends to himself.

He fell in love with the travel industry after leaving school at 16 to work for Air New Zealand.

Since then he has developed some firm ideas about building a business that combines the virtues of owner-operators with the bulk-buying power of a large corporate head office.

But don't get caught saying 'head office' at House of Travel. It's not the way Paulsen or the company's thousands of travel agents want their structure described.

Within House of Travel the main company is the wholesaler, negotiating rates at hotels and with other operators like rental car companies and those running theme parks.

It then builds these into retail packages by negotiating rates with the airlines.

It is an industry that Paulsen in enthusiastic about.

"I love it. It's fast changing. What better industry is there than sending people on holiday?

"I've had a wonderful time since 1986, because I've been able to create opportunities - and put owner operators into business and actually see them grow.

"To build the business and to see the people within the business become successful has been fantastic.

"I've had a great time."

Before Paulsen and House Of Travel, the travel industry was dominated by two types - one driven from a "head office" - where local agents on the ground had little incentive or investment in the retail side.

The other part was driven by small, individually owned businesses - and the brand was more of a "buying group" with little input from the wholesale side.

"Neither of those models was ideal. There was an opportunity to combine the best of each - that was the whole idea of the House of Travel."

He said the idea was to create a business partnership between owner operators and a business partner who would make sure that they had the right products, the right brand and everything else they needed to drive their businesses.

When new businesses are set up both the owner operator and Travel Holdings put up capital.

"If the business doesn't do well, it costs us both money. If it does well, then we both enjoy the benefits."

House Of Travel's success is demonstrated by its retail growth. Since 1987 the company has opened, on average, a new outlet every 9 1/2 weeks.

Paulsen said the average New Zealand retail travel agency had an annual turnover of about $2.6 million, but House of Travel's average was more like $6 million.

Paulsen does not spend months of the year flying the globe.

He does trip about New Zealand a lot, meeting with the owner operators, but is able to spend more time at his Christchurch home than most people would think likely.

"I don't normally work long hours. I normally finish by six at night - I don't work weekends."

His current job is developing new products, thinking of new locations and different types of holiday.

His most recent trip was spent mountain biking in Cuba - the kind of thing he sees as the future of the travel industry, customised holidays for a diverse range of people.

"One of the things that's happened is that the consumer has changed in terms of travel - 10 to 15 years ago, people would come in saying they wanted a coach tour.

"Now they've become much more sophisticated, not only in terms of travel but lifestyle - they want to take their lifestyle on holiday.

"They want to stay in a Tuscan villa, they want to go and do a cycling tour - they want to experience different things.

"It is now much more diverse."

His own lifestyle is enviable and notable for its lack of hours behind the desk.

"I decided early on that I wanted to do this for a long time - to really establish a successful business.

"I've been disciplined about getting and maintaining a balanced life.

"My family is the most important thing to me. I spend a lot of time with my family, but the business is important too."

Paulsen is also a big exercise man, with a love of mountain biking, the Coast-to-Coast race and other endurance events.

"I really enjoy being fit. A lot of family time is about that - my wife runs, we run and bike together. I try to maintain a balanced life style.

"To be successful in business over a long period of time you have to do that."

Paulsen is disarmingly modest about his reasons for his efforts to lift the profile of the company.

But he wants people to know the company is local - that it is the "Kiwi Battler" up against some well-financed, international rivals such as the Flight Centre and Harvey World.

The next generation of online travel companies, soon to hit New Zealand shores, will be huge global operations.

"We have to make sure that we get the message across that we are the New Zealand brand and we are here to stay."

Chris Paulsen

* Left school at 16 to work for Air NZ. With the airline from 1968 to 1977.

* With partner Lindsay Barron bought wholesale travel company Scholes Oakley (South Island) 1977-1986.

* 1986 - sold Scholes Oakley and established House of Travel.

* Founder, owner and managing director of House of Travel Holdings.

* Aged 52.

* Lives in Christchurch.

* Married with two sons, aged 25 and 21.

* Has run three marathons and completed the Coast to Coast endurance event twice.

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