Haggis hurls make brothers chieftains of the tourism race
Sharon Ward discovers how a family wedding in New Zealand sparkedA wedding in New Zealand may not sound a likely inspiration for a new business concept. But in 1991, three brothers from Bearsden - Alastair, Donald and Neil Campbell - attended their older brother Allan's big day and went back home with the travel bug.
None of them expected to pack in their jobs - Alastair and Donald were accountants and Neil was a student. Then they created Haggis Backpackers, now the UK's fastest growing and most off-the-wall tour company.
There was no history of travel in managing director Alastair Campbell's family. His father worked for Glasgow City Council and Allan had just set up a telecoms IT company down under. The holiday led to the brothers being shocked at how much effort went into tourism, not just by the standards of tours, accommodation and service to independent budget travellers worldwide but just how much it differed from back home in Scotland.
"I was working for Ernst and Young as an accountant in Glasgow and after not much thought decided to go back to Strathclyde University to study tourism and hotel management as a grounding for our new business. We had the idea and the business plans but we needed to experience everything from the bottom up - most importantly customer service," says Alastair.
His application for a job at DiMaggio's restaurant on Glasgow's Royal Exchange Square raised a few eyebrows as existing staff wondered why a highly qualified accountant was helping them take orders. "On my first day the boss asked what my game was, why I wanted the job," says Alastair. "I explained I needed to know about hospitality and service and was about to start my own tour company. I knew we had a niche in the market, something we could exploit. That's what this business is all about. And it's good for the country at the same time."
After finishing his exams, much research and a trawl for financial assistance - fruitless apart from small loans from the Strathclyde business development fund and the Princes Trust - the brothers began Haggis Backpackers in 1991. Their office in Glasgow's Buchanan Street cost #2 a day.
"It was 10 feet by six feet and our neighbours were an escort agency and a private detective's office. We were skint, but we knew we had to make it work to earn some money in between the chaos," says Alastair.
The company's mission was to take young travellers from around the world on high-quality, cheap, fun and flexible tours to the best parts of Scotland, in top-of-the-range yellow Mercedes mini-coaches.
"We found a commercial salesman selling yellow buses and thought, yes, they'll work. Our first tour was nerve-wracking. We'd done our research, sent out fliers to youth hostels all over the UK, Eire and Europe printed on our second-hand Apple Mac, and finally crossed our fingers."
Luck was not required. On the first day the bus was full, and in the first six months 450 passengers were given, according to Alastair, an experience they would never forget and which would make them want to come back to Scotland.
"Donald and I were supposed to do the first tour together, but he had to get off to give up his seat so I drove the bus. It was categorically a big struggle as I had a bus full of people to entertain and guide on my own, but it worked."
Haggis is now Europe's largest independent travellers' network. In year two, 1400 passengers caught the bus - and turnover in 1994 topped #25,000. In 2000, the brothers estimate it will be over #2 million.
But the company isn't just a tartan Club 18-30 taking drunken Aussie and Kiwi tourists around Scotland. "We target young overseas markets for travellers between 17 and 35. It's still a niche; we now have 22 buses taking 14,000 folk around Scotland. We've expanded to Ireland, England and Wales. America and Europe are next and still there's nothing really like it," says Alastair.
Since moving to Edinburgh - on Blackfriars Street, just off the Royal Mile - the brothers have incorporated all their operations under the Radical Travel Network banner, with telesales, executive offices and internet sites. Donald looks after finance and marketing, and Neil is responsible for sales. There is now a full-time staff of 45 and in the tourist season the number increases to more than 70.
"We have a policy of trying to provide full-time non-seasonal employment with decent long-term prospects," says Alastair. "It's experiential tourism, but we've become more streetwise and our reputation comes through word of mouth."
It's obviously doing the trick. Last June they opened an Irish office to sell Blarney Bus Tours - and Border Raiders Tours, which sells in England and Wales, is a growing success.
The business has diversified into accommodation, and the brothers now own a coach house hotel on Skye. Last April they also bought a lodge on the banks of Loch Ness.
"Hotels are not our core business. Our tours have the potential for huge expansion. Independent travellers want to explore in a low- cost, high-quality way and we allow them to do so. Haggis, Border Raiders and Blarney tours are now the most popular adventure travel network for backpackers and independent travellers," says Alastair.
Last week he won a court order evicting an internet "cyber- squatter" in one of the first legal actions over a website war of words. Lord Penrose at the Court of Session in Edinburgh granted an interim interdict preventing rival Scottish Tours from using websites with names such as haggistours.com that might be mistaken for haggis- backpackers.com.
Alastair says he tried to avoid legal action. "I was left with no option after talks with Scottish Tours proved fruitless. Haggis as a name to us is more than just the food - it's a tour company. We were set up not just to be Scottish. We want to be a worldwide business".
Looking to the future, Alastair believes 2000 will see a 30% increase in business, and that his e-commerce strategy will come into its own as the only way to target a moving market. "Youth tourism is one of the fastest growing sectors of tourism in Scotland. The challenge is to attract visitors to Scotland while they are young and encourage them to return later in life for more visits."
The company has had various approaches to sell out, and pressure did intensify last year when a large travel company offered to buy them over. "It's flattering, and sometimes I dream about what we would do with the proceeds, but with this type of company the value is in the goodwill."
The best part of running their own business, according to Alastair, is the sense of control over their own destiny: "You can run with your own ideas, creativity and basically do your own thing. You're not tied into anything.
"The bad side is wondering if it's not growing or should be busier, but on moments of reflection you know your own self-belief and confidence will see you through."
Each week, the Sunday Herald profiles a business person with the potential to build a 'blue chip' company of tomorrow. At the end of our first year we will select the leading entrepreneur when we host an award ceremony for all our Blue Chip members.
Name: Alastair Campbell Born: May 11, 1967 Attachments: Married to Annemarie Position: managing director of the Radical Travel Network Transport: Public transport Relaxation: Walking two Westies and reading books
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