The New Direction for Qualmark

New Zealand Tourism’s official quality mark

Industry Launch – December 2010

Presented by Paula McCallum General Manager
 The New Direction

Our Goal
To assist in delivering world class quality experiences to both international
and domestic travellers through quality assurance.

The New Direction Objectives

Deliver quality assurance through the use of the most efficient
business operations whilst servicing the needs of visitors and the
tourism industry;
Develop the most appropriate systems and processes for the future;
Transition from a non-profit organisation to a stand alone commercial
entity by 2013.

Areas of focus
Industry Perception;
New Assessment Process;
Criteria Review;
New Pricing Structure;
Policies and Procedures, and Terms and Conditions Revision;
Enviro Independent Establishment;
Marketing and Communications;
Qualmark Branding Review.
Industry Perception
 Industry Perception

Licence = Quality Assurance

versus
Licence = Assessment

At present there is a perception that;

 You buy a Qualmark licence;
 Licence equals an annual assessment plus marketing benefits;
This is not achieving quality assurance.

New Direction;
 Apply for a Qualmark Licence;
 Initial and ongoing Quality Assurance assessments completed to establish
pass or fail and any variance of grading;
 International and Domestic Marketing benefits.
…a Qualmark Licence is earned not paid for .
New Assessment
Process
 Current Relationship Model

Qualmark
Support Office

Licence Quality
Holders Assurance
Assessors

Licence Holder relationships are managed by Qualmark Support office.

Quality Assurance assessors are not empowered to manage licence holder base and
grow their territories,
Encourages a lack of ownership and limits value delivered to licence holders,
A relaxed approach to Qualmark Policies and Procedures shown
by industry.
 New Relationship Model

Qualmark
Assessors are the key interface with Support Office
licence holders,
Quality assurance & territory
management are revised focus for
Assessors,
Streamlined processes will allow both
sales team and assessors alike, time to Quality
concentrate on sales and bring added
Assurance
value to existing licence holders,
Assessors
Qualmark office will be the support
network to assist in building a
strong partnership between assessors and
licence holders,
Quality Assurance Assessors will Licence
manage issues and ensure fair Holders
outcomes are achieved.
 Assuring Quality
Assuring Quality through;
Risk profiling to guide assessment choice.
Effective use of the assessment menu;
Risk Profiling - This will be based on the following factors;
Operator Status;
Individual Operator Request;
External Feedback;
Previous assessment scores and trends;
Assessor or Account Manager recommendation;
Associated segment risk.
Profile Risk Examples
1 Low Risk Consistent Operator Status;
Consistent assessment %;
Specific low risk sectors i.e. iSites, Museums;
2 Medium Risk Internal Qualmark recommendation;
Proximately % to lower grade or fail;
Negative external feedback
3 High Risk New Owner or New Licence Holder;
Individual Operator Request;
High Risk Adventure Tourism Operator.
 Assuring Quality
Current Assessment Process Lacking
At present there are two assessment options;
Full assessment
An announced 3-5 hour assessment. The operator is given 2-6 weeks to
‘prepare’ for an assessment.
Issues arising from this;
Minimum requirements are not completed prior to assessment date, resulting in
inefficient time consuming follow up by support office;
Opportunity to ‘stage’ the assessment, resulting in a false grade or
endorsement.
Deferral
Agreed retention of grade without assessment
Whilst welcomed by some licence holders as a time and stress saver, it does
not assist in quality assurance.

The current system does not allow us to assure quality with confidence.

New Assessment Menu

The new assessment menu offers a range of assessment options
to ensure we can assure quality effectively as well as efficiently.
 Assessment Menu to Assure Quality

Assessment Menu Definition

Pre-Assessment This is designed to capture our current minimum requirements and

streamline the onsite quality assurance assessment process.

Visual Assessment This is an unannounced onsite quality assurance assessment. This

will be used where the risk profile is low and performance is
consistent. Estimate time 1 ½ hours

Add On Assessment This will apply where a licence holder has multiple activities, brands
and/or branches, with the condition they are all run by a common
operational process from a head office.
It is an onsite quality assurance assessment.

Full Assessment An announced comprehensive organisational, facility and quality

assurance onsite assessment. Estimate time 3-4 hours

Mystery Assessment This involves an unannounced overnight stay and/or activity

participation; followed by consultation with the owner or
management.

Enviro Pre-Assessment This will require operators to provide a detailed list of responsible
tourism initiatives along with Enviro minimum requirements.

Enviro Assessment This is an assessment, to be completed at the same time as the

quality assurance assessment. Estimate time 45 minutes
 How it will come together…

Profile Risk Assessment

Required
1 Low Risk Visual Assessment

2 Medium Risk Visual or

Full Assessment

3 High Risk Full Assessment

Criteria Review Process
 Criteria Review Process

A structured formal criteria review process has been developed;

 Based around an annual calendar;
 To ensure criteria are kept relevant and;
 Achieve continual quality assurance in an ever changing
marketplace.

The process is designed to provide ongoing opportunity for all licence

holders to have input into the criteria and effect change

This process will be overseen by industry to ensure it is owned and driven

by the industry; and achieves its goal of being open and inclusive.
 Structured Criteria Review Process

1 October 1 February 1 March Mid March 1 April Mid April 1 May Mid May 1 October

Collect Collect Collate Develop Pilot Pilot Criteria Conference

Information Information Information Criteria Process Process Confirmed Season

Industry Invitation to Deadline for Criteria Initial Review pilot Final pilot Launch Revised
collects contribute sent receipt of review criteria review criteria to criteria
feedback on to Industry contributions group meet pilot starts & criteria completed Industry live
criteria including any if required
specific areas
of concern
 Structured Criteria Review Process Detail
 Industry collects feedback on criteria
 Between 1 October and 31 January industry associations and groups are encouraged to collect feedback ready for the
formal beginning of the review process on 1 February.
 Invitation to contribute sent to industry, including any specific areas of concern
 Request for feedback sent via Qualmark, TIA, other Industry Associations, Regional Tourism Organisations and industry
publications;
 Including a request for feedback on any specific areas of concerned raised prior to review;
 Data to be collected and administered by a dedicated staff member for the period 1 February to 31 March.
 Deadline for receipt of contributions
 Deadline for data to be received by in order to keep the process managed and focused;
 Collate information into an efficient easy to work with format.
 Criteria review group meet
 Made up of Industry representatives and Qualmark team;
 Discuss feedback, form recommendations based on specific suggestions raised and develop criteria changes where
required.
 Initial criteria pilot starts
 3 Pilots completed per sector on a mid, high and low range operators to ensure fair results achieved and to establish
impact on the broader sector.
 Review pilot & criteria if required.
 Final pilot review completed
 Pilot process completed, reviewed and confirm criteria;
 Launch criteria to Industry
 Revised Criteria available from mid May on Qualmark Website for Licence Holder access;
 Present criteria to the industry via industry conferences, print media, newsletters, websites and face to face meetings.
Revised criteria live
 All assessments completed after 1 October will be assessed by the revised criteria.

NB: This process will be overseen by industry to ensure it is owned and driven by the industry;
and achieves its goal of being open and inclusive.
New Pricing Structure
 New Pricing Structure

Current pricing structure

Complicated, varies from sector to sector;
Uneven balance for size of individual businesses – does not fairly
reflect the size of business;
Discounts apply regardless of when payment is made;
Licence fee does not reflect the cost to assess.

New Pricing Structure

The new pricing structure is based on;
a base fee plus
a variable fee dependant on sector.
The benefits of this system;
Simplified and fairly reflects size and scale of organisation;
Fairer and easier entry for smaller operators;
Easier entry for more financially accessible for smaller operators
Rewards only apply to invoices paid on time;
 New Pricing Structure

Application Fee
Applies to all new licence holders without exception.
Non refundable;
Base Fee
A base fee applies to each sector;
Combines with the variable fee plus any additional multiple fees.
Variable Fee
Set appropriately to ensure a fair pricing structure is achieved
across all licence holders.

Multiple branch/criteria and/or logo

Eliminates the inconsistencies;
for multiple branches
endorsed licences that have more than one activity we have
to assess.
Achieves a level of transparency and streamlines our pricing
process.
 New Pricing Structure

Available Rewards – Apply to on time payment only.

Long Tenure Reward

Rewarded for maintaining licence consistently – applies after 3
years (3%) through to maximum of 10 years (10%);
Conditions to maintain Long Service Reward in the event of a
sale of the business
30 day grace period given to new owner of an existing
Qualmark licenced business;
12 months ‘holiday’ given to an owner that sells and buys
or develops another business and signs up again.

Loyalty reward
A 10% reward will be offered to
Marketing Chains who show a commitment to achieve
100% participation;
Dual Licence Holders.
 New Licence Holder Process
Hotel

Complete application form Pay initial

application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base fee $ plus
$ per room

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service Annual licence fee

reward applied

Quality assurance assessments

completed
 New Licence Holder Process
Self Contained & Serviced
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base fee $ plus
$ per room

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Guest & Hosted
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base fee $ plus
$ per room

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Backpackers
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base fee $ plus
$ per bed

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Student Accommodation
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base fee $ plus
$ per bed

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Holiday Homes
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established Group Members H/O Base Fee $
Base fee $ plus
$ per group member

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Holiday Parks
Complete application form Pay initial
application fee $

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment
Licence fee established
Base Fee $ plus
$ per site and
fixed accommodation

Applicable Rewards applied

Licence Fee Due

Application Fee or Licence Fee,
whichever is greater

Loyalty and long service reward Annual licence fee

applied

Quality assurance assessments

completed
 New Licence Holder Process
Visitor Service, Visitor Activity, Visitor Transport
Complete application form
Pay initial application fee $

Initial assessment completed Failed Assessment

No Award achieved (no refund)

Passed Assessment Plus

Licence fee established $ per multiple
Base fee $ plus criteria, brand or/and branch
$ per FTE staff member

Applicable Rewards Applied

Licence Fee Due

Application Fee or Licence Fee
whichever is greater

Annual renewal licence fee.

Loyalty and long service reward applied

Quality assurance assessments

completed
 New Licence Holder Process
Venues
Complete application form
Pay initial application fee $

Initial assessment completed Failed Assessment

No Award achieved (no refund)

Passed Assessment
Licence fee established
Base Fee $ plus
$ per head of capacity (PAX)

Applicable Rewards Applied

Licence Fee Due

Application Fee or Licence Fee
whichever is greater

Loyalty and long service Annual renewal licence fee.

reward applied

Quality assurance assessments

completed
 New Licence Holder Process
Exclusive
Candidates identified based on
Invitation to Apply Achieving 95% plus consecutive years;
Sent Exemplar within sector, location and level of
luxury.

Mystery Shop completed;

Must achieve over
90% to proceed

Passed Assessment
Licence fee established
Sector licence fee plus
Exclusive fee $

Applicable Rewards Applied

Licence Fee Due

Annual renewal licence fee.

Quality assurance assessments

Loyalty and long service reward applied completed
Policies & Procedures
and
Terms & Conditions
Policies & Procedures and Terms & Conditions

Our Policies & Procedures; and Terms & Conditions have been revised
to reflect our new direction, and to assist in the implementation of
change in the following areas;

Organisational direction;
Operations and Assessment processes;
Pricing Structure;
Encourage industry compliance with revised processes.
 Licence Payment Process
Reminder sent
1 month after Licence
8 weeks prior to 1 month prior to Licence Expiry
Expiry Date
Licence Expiry Licence Expiry Date

Applicable rewards apply Full payment accepted

No rewards apply

Licence renewal Licence terminated

Licence payment due
Invoice sent for non-payment

Licence renewal invoice sent

 Invoice generated 8 weeks prior to licence expiry;
 Invoice payable prior to licence expiry.
Reminder sent 1 month prior to Licence Expiry

Licence Expiry Date – falls on last day of the month

Licence payment due

 If invoice paid before licence expires applicable rewards are applied.
 If invoice paid after licence expires but within 1 month of expiry full payment accepted and licence retained.
– No rewards applied.

Licence terminated for non payment

 Must reapply as new licence holder and pay application fee;
 Long tenure reward is cancelled – starts again at year 1 on reapplication.
 Pre Assessment Process
Qualmark 2 months
1 month
Licence Date

Complete and return pre-assessment Grace period

Pre-assessment Reminder sent including Licence terminated

link sent to consequence of for non-compliance
licence holders non-compliance

Pre-assessment link sent to licence holders -

A link to pre-assessment document emailed to licence holders
Written contract including details also sent with renewal licence certificate
“Guide to complete pre-assessment” supplied
Reminder sent including consequence of non-compliance
Licence holder given 30 day grace period to complete
Failure to complete will result in licence termination
The licence fee is non-refundable
Opportunity to contact Qualmark if there is any issue or circumstance inhibiting
completion on time.

Licence terminated for non compliance

Must reapply as new licence holder and pay application fee;
Long tenure reward is cancelled – starts again at year 1 on reapplication.
Enviro Independent
Establishment
 Enviro Award Stands On its Own

Independent Launch Success for the Enviro Award

Established in Hotel and Holiday Park sectors 1st September, 2010;
Introduced to all other sectors from 1st April, 2011;
Retain Enviro minimum acceptable requirements in the quality
assured assessments;
No longer affects the quality assured assessment score or grade
achieved.
Enviro Award will only be available to Qualmark Licence Holders.
Enviro Award Price Structure - Optional
Non-Refundable Application Fee $300
(NB: New Licence Holders only – Covers 1st year licence fee)
Ongoing Annual Licence Fee $300

Price Structure Effective from

New Licence Holders - 1st April 2011;
Existing Licence Holders
 1st July 2011 - $200 (Discounted for first 12 months);
 1st July 2012 - $300
 New Licence Holder Process Enviro Award
(only available to Qualmark Licence Holders)

Complete application form

Pay initial application fee
$300

Failed Assessment
Initial assessment completed
No Award achieved (no refund)

Passed Assessment and

Enviro Award Status established
Gold, Silver or Bronze

Loyalty and long service reward applied Annual renewal licence fee
$300

Quality assurance assessments

completed
Marketing and
Communications
 How we will be doing it from now on

 Leveraging off International and Domestic Trade Opportunities

 Smarter Marketing Spend

– The end of random, un-focused, expensive Qualmark ads.

 Focus on Utilising Media Opportunities

– Proactive and positive media opportunities - raise profile
– Reactive media opportunities - the ‘go-to’ organisation on Quality
Assurance.

 Focused and Targeted – Why, Who & How

Example;
– Why – Build Assessor industry credibility;
– Who - Tourism Business Magazine – industry-focused magazine,
– How – through focused assessor advertorials.
Focus on our Assessors
 Qualmark
Brand Review
 Qualmark Brand Review

Objective
 To develop and launch a new Quality Mark that differentiates
between sectors and is immediately recognisable by international
and domestic visitors as New Zealand’s trusted and official quality
mark.
– Partnered with brand specialists Contagion Limited;
– Undergoing Brand Health exercise;
– Developing revised brand to clearly differentiate sectors;
– Establishing formal brand standards and management processes;

 Revised brand and brand standards introduced to the Industry for

consultation during February 2011.
The New Direction
Timeline
 The New Direction Timeline

 The New Direction Information Pack

– Available via Qualmark website - 23rd December, 2010;

 Industry Follow-up Consultation engaged during January,

2011;

 Implementation Date for Changes 1st April, 2011.

 Enviro Award Price structure effective from;

– New Licence Holders - 1st April, 2011;
– Existing Licence Holders - 1st July, 2011.