Wellington's Flat Earth still flat out

BUSINESS TIME: Tourists from the Dawn Princess cruise ship and tour guide Tim Marwick at A Lord of the Rings location.

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Mark Rogers puts a spot on the calendar to mark every sightseeing tour he sells, and after five years in business his calendar looks like a leopard with freckles.

With 25 per cent growth per year in tourist numbers, Flat Earth is on its way to proving itself against start-up advice from New Zealand Trade and Enterprise that it did not have a viable business model.

But Mr Rogers says it has been a hard slog. He has not had a holiday since starting the self-funded business in 2003, it is still to make a profit and he works 364 days a year.

Flat Earth is now one of the premium luxury tour providers for Wellington visitors. It launched a sister company, Wellington Sights, in September to cater for mid-range tours.

The diversification has worked well as an anti-recession strategy, providing shorter and cheaper tours for the non-luxury end of the market, Mr Rogers says.

But even with tourism growth strangled by a global downturn, he says it was the right choice to set up in the capital.

Aiming to build a tourism business for profit's sake, as opposed to lifestyle, like many start-up tourism outfits, Mr Rogers looked for the right mix to achieve the goal.

He says Wellington works because the small number of highly professional operators are of a mind to work together, as opposed to cutting each other out. Wellington's Lord of The Rings fame is also important, providing half his business.

Mr Rogers says the firm's pricing, with full-day tours up to $385 per person, was always designed to make small groups economical and cover seasonal slow periods, while still delivering five-star treatment.

With six vehicles, the vagaries of fuel-related business have hit hard in recent years. Pricing two years ahead, as required by overseas wholesalers, is one of the most challenging aspects of the business.

"There's as much art as there is science in it."

Carefully managing tour logistics so they never see each other in Wellington's limited environs is one part of the job; another is careful selection of tour guides.

"A lot of people think they can do it. But it is a very special person who can make a good guide," he says.

Knowing the city lends itself to hiring life-long Wellingtonians as tour leaders, but personality and the "chocolate on the pillow" treatment make sure a memorable experience equals word of mouth advertising.

"We cannot afford to have a bad day," Mr Rogers says.

Investing in training is one thing he says New Zealand tourism could do better, with fixed training standards not only likely to lift the standard of service generally but create a pool of employable quality guides.

Building the business to employ 20 staff from scratch has been the most rewarding part of running Flat Earth, Mr Rogers says, but the tourism game is an enjoyable lifestyle whether you planned it that way or not. "It's a good-time business. There's not a lot of downsides."

- © Fairfax NZ News