Uber plans a travel service Page 2 Oil price falls but...

TRAVEL NEWS WEEKLY

INSI

DE

SOUTHERN AFRICA’S TRAVEL NEWS WEEKLYFebruary 3 2016 I No. 2384

Page 2 Page 8 0

FEATURESADC

Volatile rand poses a challenge

FEATURESERVICED APARTMENTS

Travellers want home away from home

NEWSWATCH OUT!

Uber plans a travel service

Stop press!

TNW6867SD

TNW7416SD

Setting sail!Cruises International is offering travellers the chance to pay for one guest and get 50% off the second ticket! The offer is valid until February 15 and applies to all Royal Caribbean International sailings, excluding China. The guest receiving the 50% discount must be booked in the same stateroom as the first guest who books at full fair. Travellers can also earn up to $300 (R4 937) in stateroom on-board credit and the offer includes one select beverage package on Jewel, Vision and Rhapsody of the Seas for sailings departing between April and November. Pictured here preparing to set sail are Cruises International’s Dionne Potiphar, Trade Relations manager Gauteng; Thaybz Khan, manager Contemporary Brands (Royal Caribbean, Celebrity Cruises, Azamara Club Cruises) and Henuti Purshotam, product manager. Photo: Megan Fischer

Oil price falls but fuel surcharges riseDorine reinstein

A 34% fall in the oil price since November has brought no relief to travellers. In fact, South

African travel agents tell TNW that although oil is at an all-time low, fuel surcharges have increased during this period.

Agents have been outspoken on the subject on TNW’s sister publication, eTNW. One agent said the oil price was predicted to become cheaper than water. “Even with a terrible rand, fuel surcharges shouldn’t be so high.”

Although agents acknowledge that

airlines are faced with a crippling rate of exchange, most are left wondering why the airlines decide to “hide” this cost in a surcharge instead of increasing the base fare.

Franz Von Wielligh, gm of Flight Specials, says that all commercial agreements that agents have with regard to commissions and incentives are based on the fare portion of sales, thus not increasing the base fare disadvantages agencies in terms of reaching targets.

“The airlines are the ones bleating about transparency – going mad when agents find a way to charge a service fee ‘hidden’ in the ticket price – but then they [the airlines] hide their own increases in the fuel levy. That is such double-standard, underhand behaviour,” another agent said on eTNW.

Internationally, the practice of reducing airfares and increasing surcharges is also receiving attention. Paul Hudson, president of FlyersRights, a US-based non-profit consumer organisation representing airline travellers, told TNW that base fares had become a smaller portion of the overall airfare over the past few years. He says there is a lack of legal definition of what an airfare should include.

Airlines continue to cite the rate of exchange in South Africa as the reason that fuel surcharges remain high. They argue that the volatility of our currency also necessitates

To page 2

40

30

20

10

0Figures based on prices from Nov 20 2015-Jan 20 2016

Oil p

rice

redu

ctio

n

Why would surcharges increase?

34%

17%

Rand

de

prec

iatio

n

Another Gulf carrier for SA?OMAN Air has set its sights on South Africa. The airline advertised in The Star on January 27 that it was looking for a “representative partner” in the local market. “Ideally, your organisation will be well-established and able to demonstrate strong links to the aviation and tourism-related sectors,” the advert says.

Oman Air is the flagship carrier of the Sultanate of Oman. The airline currently operates direct international flights from Muscat to Abu Dhabi, Bahrain, Doha, Dubai,

Jeddah, Riyadh, Dammam, Madina, Tehran and Kuwait in the Gulf region, as well as Cairo, Beirut and Amman within the wider Middle East region.

It also flies to 11 destinations in India; Karachi, Islamabad and Lahore in Pakistan; Kathmandu in Nepal, and Colombo in Sri Lanka, as well as the Maldives, Bangkok, Singapore, Kuala Lumpur, Manila, Jakarta, Zanzibar and Dar es Salaam. Its European destinations are London, Milan, Munich, Frankfurt, Paris and Zurich.

2 n Wednesday February 3 2016 QUICK READ FOR DECISION-MAKERS

Phone: (011) 327-4062 Fax: (011) 327-4094 E-mail: [email protected] Web: www.nowmedia.co.za Address: Now Media Centre, 32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg. PO Box 55251, Northlands, 2116, South Africa.

TRAVEL NEWS WEEKLY

Published by Travel & Trade Publishing (Pty) Ltd Printed by Juka Printing (Pty) Ltd

www.etnw.co.za

Founding Editors: John H Marsh (1914-1996) Leona Marsh (1923-2003)

EDITORIAL Editor: Debbie Badham [email protected] Journalists: Darise Foster Dorine Reinstein Carina Borralho Taryn Nightingale

Photographers: Shannon Van Zyl Megan Fischer Production Editor: Ann Braun

GROUP PUBLISHER David Marsh [email protected]

DEPUTY PUBLISHER Natasha Schmidt [email protected]

SALES Sales Director: Kate Nathan [email protected] Advertising Co-ordinator: Anthea Lucas [email protected]

PRODUCTION Design Head: Dirk Voorneveld

SUBSCRIPTIONS Circulation [email protected]

Rubes® By Leigh Rubin

NEWS

TNW6153SD

There were hunters, and there were gatherers, but the most coveted occupation of all was the cushy

administrative desk job.

Watch out OTAs, here comes Uber!Dorine reinstein

AFTER completely disrupting the taxi industry, Uber may well

become a threat to OTAs. The popular hail-riding platform has patented a travel booking service that seems to signal its entry into the OTA business.

In the patent application for Uber Travel, the company says it aims to provide a perfectly timed and seamless end-to-end trip, including the booking of flights, ground transport and accommodation. The system would also monitor flight and vehicle delays, and alert the appropriate airline and hotel systems, re-accommodating the traveller when necessary.

Uber has only just registered the patent for its new service but Russell Jarvis, spokesperson for Travelstart, says if Uber goes live with its new offering, the company will be in a good position to threaten the industry as it is already known by many users, and has built an audience across multiple countries that

trusts and loves Uber. “The size of the threat they

pose to the industry at large will depend largely on where they get their inventory from. They might just end up being another ‘super-affiliate’ if they can’t implement an integration where they control the entire, or many parts of the supply chain. Also, just because a company has a reputation for being a disruptor in a niche does not mean they will be successful when they try to disrupt other niches – even Google hasn’t quite been able to crack travel – it’s a complex industry with many touch-points,” says Russell.

Uber’s potential entry into the OTA space, could well see more OTAs move to address the local transport gap in their itineraries. Russell says there is definitely room for innovation and competition in this space, which could start happening via partnerships and acquisitions.

OTAs who rely solely on the traditional OTA business models are in danger of thinking that doing the same thing will work year in

and year out, agrees Rian Bornman, md of FlightSite Agent. “At FlightSite, we see the future of the South African OTA in creating better access to local content. For example, we’re the first OTA to offer a range of bus tickets, bookable and payable through Pick n Pay stores,” he says.

Travelstart has also been focusing on niche areas of the sector, according to Russell. “We are localised; we support our customers over the Internet and phone, and we have relationships with suppliers. Many of the touch-points Uber Travel wants to hit go far beyond the scope of products and services Travelstart wants to offer its customers.”

Whether or not Uber will disrupt the travel industry as significantly as they have the taxi industry remains to be seen. “Currently the travel industry is a multifaceted chain affected by many variables and whether or not it’s something that can be ‘uberised’ as easily as one facet of a trip (hailing a taxi) is yet to be seen.”

Cameroon airport to close for repairs DOUALA International Airport in Cameroon will close for reconstruction from March 1-21. All flights that operate from Douala will use Yaoundé Nsimalen

International Airport during this time.

During the closure, repairs will be made to the runway and aircraft parking areas.

Oil price falls but fuel surcharges rise

surcharges outside of the base fare.

Approximately 50% of South African airlines’ costs are in dollars (including fuel) and the impact of rand volatility is therefore significant, says Erik Venter, Comair ceo. “Fortunately the recent collapse of the rand has been partly offset by the decline in the price of oil but the decline in operating costs seen in the US and Europe has not been realised in South Africa.”

According to Rodger Foster, ceo and md of SA Airlink, carrier-imposed surcharges are hedging mechanisms to mitigate currency and fuel price fluctuations. “It is true that airlines could increase their fares in rands and do

away with carrier-imposed surcharges, but this is impracticable given the volatility of our currency.”

Kirby Gordon, vp sales and distribution for FlySafair, says even if hedging measures are in place, they cannot always outlive a sustained and rapid deterioration of the currency.”

Aviation specialist, Christopher Elliott, argues, however, that part of the reason for a low base fare is that airlines want to offer the lowest fare possible. “They would advertise a zero fare if they could, because customers book them, even when fees and taxes are later added on to the final cost.” He says although airlines are legally required to advertise the full fare, somehow passengers are

still drawn to the “low” base fare.

But Rodger maintains airfare pricing is not that simple and the ultimate determinant of how much the carrier can sell the seat for (and therefore how low the base fare needs to be dropped) is what the customer is willing to pay, and the customer is spoiled for choice in a domestic open skies environment and with the current oversupply of airlift capacity.

Fare increases are not out of the question yet either, according to Hein Kaiser, spokesperson for Mango. “At this time, fare increases are somewhat mitigated by a much lower fuel price but should the currency weaken more it may impact future travel costs.”

From page 1

Airlink returns to Nosy Be AIRLINK and MadagasCaT Charters and Travel will introduce a flight between Johannesburg and Nosy Be in Madagascar, effective March 20. The flight will operate on Sundays.

The flight will depart at 09h30 from OR Tambo

International Airport and arrive in Nosy Be at 14h00. The return flight will depart Nosy Be at 14h45 and arrive in Johannesburg at 18h45. The return flight will make a technical stop in Vilanculos for refuelling.

MadagasCaT Charters

and Travel has contracted to make an advance purchase of 20 seats on each flight. The remaining 17 seats will be made available for sale on the GDS. The service will be operated using an Embraer ERJ 135.

TNW7403SD


Temporary flight changes for Air NamibiaAIR Namibia’s Windhoek-Walvis Bay (WDH-WVB) and Lüderitz-Oranjemund (LUD-OMD) services will be affected by routine maintenance on one of its aircraft, effective January 20 to February 22. WDH-WVB flights SW165, SW166, SW167 and SW168 will be cancelled on Mondays, Wednesdays, Fridays and Sundays. LUD-OMD flights will operate in the afternoon on Mondays and Wednesdays.

SQ to launch Canberra-Wellington service SINGAPORE Airlines is launching services between Canberra and Wellington, New Zealand, effective September 20. Subject to regulatory approvals, the route will operate Singapore-Canberra-Wellington. Flights will depart Singapore at 23h00 on Tuesdays, Thursdays, Saturdays and Sundays and arrive in Canberra at 08h35 the next day. Flights then depart Canberra at 09h50 and arrive in Wellington at 15h05. The return flight will operate on Mondays, Wednesdays, Fridays and Sundays, departing Wellington at 20h15 to arrive in Canberra at 22h05. The flight departs Canberra at 23h30 to arrive in Singapore at 05h50 the next day. The service will be operated using a 266-seat Boeing 777-200s with 38 seats in business class and 228 in economy.

AirHeadsA snapshot of the week's airline news

TNW7419SD

Discoveries Worldwide offers new take on packaged tours Debbie baDham

ROYAL African Discoveries has enhanced and expanded its custom-

tailored offering through the launch of its new brand, Discoveries Worldwide, to offer unique experiences to the East.

The group, which previously operated in the East under the banner of Wendy Wu, has made a strategic decision to shift from mass-market to boutique branding, says Royal African Discoveries md, Johan Groenewald. He says

while nothing has changed operationally, the new brand will expand its product offering to include itineraries in Japan, Indonesia and the Philippines. Itineraries currently also include China, Vietnam, Cambodia, Laos, India, Sri Lanka, Nepal, Thailand and Myanmar.

Johan says over the years Royal African Discoveries has seen a growing demand from experienced travellers who know what they want and who want to experience destinations in a different

way. For example, most local travellers would associate Indonesia with Bali. However, Discoveries Worldwide will now offer small boat cruises among the lesser-known Indonesian islands. “Indonesia has an incredible culture to explore and a huge expanse of islands, and we will now offer seven-day cruises in the region that are not yet sold in South Africa,” says Johan. “These cruises will particularly appeal to divers and will also explore the islands’ vibrant market life,” he adds.

Pictured here ready to take South Africans on new adventures are (from left) Royal African Discoveries’ Mitzalyn Alonso Cruz, Gauteng sales representative; Thuli Khumalo, senior tour consultant; and Michelle Jansen, operations manager. Photo: Megan Fischer

Gauteng Tourism welcomes new bossDarise Foster

SIPHIWE Ngwenya has been appointed the new ceo of the Gauteng Tourism Authority.

The former Gauteng Growth and Development Agency head took over from former Gauteng Tourism ceo, Dawn Richardson, on December 1.

“I have come into this role with big goals and even bigger expectations,” Siphiwe said.

He told TNW his main goal was to increase and promote Gauteng Tourism as a brand both locally and internationally. “I want to ensure that we establish Gauteng as more than a transit destination.”

Gauteng Tourism would prioritise solidifying a partnership with the travel and tourism sector to fulfil

this goal, said Siphiwe. “We need to establish a partnership or ‘brand alliance’ with travel agents and tour operators to showcase the various attractions on offer in Gauteng.”

To start the partnership, the Gauteng Tourism Authority offices in the Johannesburg CBD would act as a concierge platform for all travellers and tourism service providers looking for more information, Siphiwe revealed.

“By the end of the next financial year, our offices at the Gauteng Tourism Authority will be a one-

stop shop of facilities that can advise about visa issues, safety and entertainment.”

Gauteng Tourism would also address challenges relating to permits and tourism grading as part of the concierge

service, Siphiwe added. “Ultimately, I hope to tackle

the negative perceptions plaguing Gauteng – particularly those relating to fraud and safety – and showcase it as a destination of substance with endless activities and attractions for both corporate and leisure travellers to enjoy.”

Siphiwe Ngwenya

Premier moves into MpumalangaPREMIER Hotels and Resorts has acquired The Winkler hotel in Mpumalanga.

The hotel was formerly owned by the Hospitality Property Fund and marketed by Protea Hotels and managed by Extra Bold, functions that will now be handled by Premier Hotels and Resorts.

Premier Hotel The Winkler offers 87 guest rooms, ranging from standard and executive rooms to family rooms and suites. All rooms have en-suite bathrooms, satellite television and Internet connectivity.

Located a short distance from the Kruger National Park and Kruger Mpumalanga

Airport, the hotel is the first of the group’s properties in Mpumalanga. “We are continuing our national expansion and Mpumalanga has always been viewed as an important location in our strategic growth plans,” says Samuel Nassimov, md of Premier Hotels and Resorts.

TNW7287SD


NEWS

TNW7415SD

Where do travellers’ rands go further? Darise Foster

WITH the rand’s recent depreciation, many travellers will be

questioning the affordability of travelling outside the country.

The table below illustrates how much value the rand has lost since January last year in relation to the currencies of destinations

popular with South African travellers. These destinations were listed among the top 20 cities visited by South Africans in 2015, according to Travelstart, and the historical currencies were sourced from www.xe.com.

As the table shows, travel to any destination has become more expensive. However, many of those in

the table are still attractive because the rand can still go a long way.

”The value of the rand will continue to worsen but value can still be found in affordable destinations such as Thailand and Mauritius,”says Christopher Simonsen, product and operations manager at Checkout Tours.

Pentravel ceo, Sean Hough, also believes that Thailand

and Mauritius are great options as their favourable exchange rates continue to offer value and affordability for South African travellers. “They offer visa-free, affordable travel and I think 2016 will be a good year for these destinations from a South African perspective.”

Travel Counsellor, Lana Sykes, agrees Thailand is still cheap despite the

less favourable exchange rate: “Getting to Thailand is expensive but your rand goes a long way once you are actually there.”

All-inclusive offerings will also be vital this year as travellers will look to cut costs, Sean adds. “Cruising and coaching are also excellent recommendations for travellers this year,” he says.

Destination Currency Relative rand amount % change since1/1/15 1/11/15 21/1/16 1/1/15

UK Pound R18,00 R21,36 R23,59 31%China Yuan Renminbi R1,86 R2,18 R2,53 36%Zambia* Zambian Kwacha R1,08 R1,08 R1,47 36%Mauritius Mauritian Rupee R0,36 R0,38 R0,46 28%Dubai, UAE UAE Dirham R3,14 R3,76 R4,54 45%Netherlands Euro R13,98 R15,21 R18,17 30%Thailand Thai Baht R0,35 R0,38 R0,46 31%Mozambique Mozambican Metical R0,32 R0,32 R0,37 16%Hong Kong Hong Kong Dollar R1,49 R1,78 R2,14 44%New York** US Dollar R11,56 R13,82 R16,68 44%

* According to American Express Forex in The Zone@Rosebank, South Africans cannot exchange rands for Zambian Kwacha before departing South Africa. They have to purchase US Dollars and exchange them for Kwacha once in Zambia.

** New York was not featured on Travelstart’s list of most-visited destinations by South Africans in 2015. It has been added to this list to represent the US Dollar.

Find what you seekTo know more, log on to www.incredibleindia.org. Mail: [email protected]

TNW7250

Find what you seek

The reason why most people leave India with excess baggage.


TNW7361SD

Serviced apartments are growing in popularity with travellers, TMCs and travel procurers as a result of potential comfort and savings advantages. Michelle Colman reports.

Business travellers want a ‘home away from home’

DEMAND for serviced apartments is growing globally. In Europe there’s

been an explosion – the number of apartments has jumped by over 80% in the last two years – and it is estimated that there are now over 105 000 apartments in over 1 700 locations. Industry experts predict a further 50% growth in facilities over the next two years.

BridgeStreet Global Hospitality, a family of six brands in the serviced apartment arena well known in the Americas and EMEA, has identified a travel trend among travel professionals that it dubs the “digital nomad” lifestyle. In a poll of 30 000 global professionals that it conducted, 83% showed a preference for serviced apartments as their working headquarters while on the move, enjoying the benefits of home along with traditional hotel amenities.

The freedom, space and self-catering facilities offered by serviced apartments were favoured over exotic beaches and busy coffee shops. Digital nomads liked the fact that in a serviced apartment they were not bound by hotel rules, could entertain as they wished,

eat when they wanted to and could stick to diets or nutrition plans. The serviced apartment is also suited to the increasing blend of business and leisure (‘bleisure’) that characterises much of today’s business travel.

Growth in SA Growth of the trend in South Africa appears to be more measured, although there has been a significant increase in serviced apartments in Sandton – Johannesburg’s second, and still developing, CBD. A company that

has recently contributed substantially to the sector is The Capital Hotel Group, which has five properties in Sandton and a sixth under construction.

The group also opened a property in Cape Town in November; one in Rosebank, Johannesburg, in December and is building yet another at Menlyn in Pretoria. Gillian Kapotwe, head of marketing, says future expansion plans include 11 properties in the sub-Saharan market.

Capital apartments offer fully equipped kitchens, dining areas, lounges and, in general, more living space than the average hotel room.

Also well known in Sandton is Legacy Hotels & Resorts, which operates the DaVinci Suites, Michelangelo Towers and Raphael Penthouse Suites. According to marketing co-ordinator, Candice Morawitz, building will soon begin on a fourth Sandton property, Leonardo, on Maude Street.

All Legacy apartments are fully serviced, link into Sandton’s central shopping centres and malls and are within walking distance of the Gautrain station. A full concierge service is offered as well as complimentary return transfers within a 2km radius of each property.

Serviced apartments also offer rates that compete favourably with traditional hotels, meeting the goals of travel procurers. Gillian puts the saving at up to 25% compared with a hotel room, when space and amenities are compared. Candice says the longer the stay, the more cost-effective the rate and ancillary services such as laundry are also less expensive.

What about policy?Usage of serviced apartments is increasingly becoming a part of travel policy, says Alastair Dickenson, client business manager at Wings Travel Management. This is especially the case for

employees being moved to different locations within their company. “For example, an employee moving for a year or more to a different location would be entitled to stay in a serviced apartment for one to two

months while longer term housing is finalised. Those placed on projects for three months might spend the whole time in a serviced apartment,” he says.

The mode of

SERVICED APARTMENTS

New to The CapitalTHE Capital Hotel Group opened its first Cape Town hotel, The Capital Mirage, in November. Situated in trendy De Waterkant, it has 65 rooms comprising fully serviced luxury and superior studios, as well as one-, two- and three-bedroom apartments. There is a choice of three restaurants, a bar with great city views, a spa and hair salon, The Gin and Snooker Library and a swimming pool and gym.

The Capital on Bath in Rosebank, Johannesburg, offers 142 standard hotel rooms, luxury executive suites and apartments with one to three bedrooms. A spacious fitness centre overlooks a pool. There’s a large garden with space for soccer and cricket activities.

Complimentary services include high-speed WiFi, laundry, parking and shuttles to the Rosebank Mall and the Gautrain stations.

To page 9

“Savings can be up to 25% compared with a

hotel room.”

Visit: www.travelinfo.co.za

Learn More, Sell More!Look at our latest workshops

Learn about them in this online workshop

RwandAir flies to 17 DESTINATIONS in Africa & Dubai

Complete the online workshop to enter the prize draw

Airlink operates services to 35 destinations in 9 African countries

return tickets PTA-CPT (or v.v.)

all inclusive!

WINa R2 000

Takealot voucher

WIN 2

TNW7525

QUICK READ FOR BUSIEST PEOPLE Wednesday February 3 2016 n 9

DIY on the rise“We are seeing a greater number of requests for more kitchen appliances such as blenders,” says The Capital’s Gillian Kapotwe, noting that people are eating more healthily and want to take time to actually prepare healthy meals. “Also travellers and bookers are more price-

conscious and shop around, therefore bookings through online travel agents are becoming more significant because of the ability to compare prices and ease and speed of booking. Fast and free Internet is now an expectation for business travellers,” she adds.

The practicality of the

room layouts and ease of use is definitely important, notes Legacy Hotels and Resorts’ Candice Morawitz. “The booking process must be simple and the service must be perfect on a daily basis – there is no room for error as it is a very competitive market,” she says.

Global trends – facts and figures The US remains the

largest market for serviced apartments, accounting for almost 60% of the world’s extended-stay units. Marriott Worldwide was

the leading serviced apartment operator by number of units in 2014. Also in the top five were Extended Stay Hotels Group (USA); InterContinental Hotels Group; Oakwood Corporate Housing and Hilton Homewood/Home2Suites. Occupancies at serviced

apartments are outpacing occupancies in traditional hotels. From January to August 2014, London’s serviced apartments recorded an average occupancy of 83,2% compared with 81,9% for hotels. In Sydney, apartment occupancy reached

87,5% compared with 83% for hotels. In Dubai, the figures were 78% and 77,4% respectively. IHG, Hilton and Accor all

offer serviced apartment brands, namely Staybridge Suites, Homewood and Adagio respectively. A number of serviced

apartment operators now offer different sub-brands within the sector to cater for different lifestyles. A growing trend among

developers is to locate serviced apartments in the same buildings as hotels. Costs are then saved, as functions such as housekeeping, laundry, security and maintenance are shared.

Source: Global Serviced Apartments Industry Report 2015/16, The Apartment Service Worldwide

accommodation is also becoming more popular for shorter stays. “We are now seeing more transient passengers, especially those travelling regularly to the same city, using apartments,” comments Alastair.

Moreover, serviced apartments are able to provide secure environments and fulfil the corporate’s duty-of-care obligations. Alastair says industry standards are being introduced to ensure safety and security of guests by bodies such as the Association of Serviced

Apartment Providers (ASAP), which has a membership spanning nine countries, all adhering to a Code of Conduct.

The serviced apartments sector in the rest of Africa is still rather small, an anomaly when the demand for extended-stay facilities is significant, especially considering Africa’s distance from its markets on other continents. Very few international brands have delved into Africa’s serviced apartment segment, and many existing facilities are owner-operated conversions from residential developments.

Experts say that while an increasingly mobile global workforce will continue to boost the serviced apartment sector, the millennial generation’s thirst for travel is boosting demand even further. Alastair agrees that millennials are part of the reason for growth but also puts the popularity of serviced apartments down to a general maturity and development of the sector. TMCs that historically booked hotels only, are now much more involved with serviced apartments. The same is true of the travel buying community.

From page 8


Malawi Wildlife and Beach Tour 6Days/5Nights

Contact Details: Tel: +27 1123 48577 Mobile: +27 82 801 2015Web: www.malawiconsulate.co.za Email: [email protected]

Packages available from R13 560 PPS staying in Majete OR from R14 785 if staying in Liwonde National Park.Includes: 6 days fully guided trip, accommodation on full board basis, start & finish in Blantyre, 2 activities p/day (Sunset Cruise & Snorkelling trips), 2xGame drives and 1 boat safari. Excludes: Flights and taxes. Subject to availability. Package is NETT

TNW7528

SADCVolatile rand poses a challenge

WITH the rand having recently suffered significant falls,

booking travel to dollar-denominated regions presents agents with considerable challenges.

“The weakened rand is definitely a problem when booking travel to the SADC,” confirms Carol Eedes, manager and owner of Alphabet Travel. Carol books mining expeditions for corporate travellers to dollar-denominated countries such as Mozambique, Zambia and Angola. She says the fluctuating exchange rate makes booking within the SADC region “fluid”. The situation constantly changes and providing accurate quotes for your client can be a tricky process, she says.

“Sometimes you’ll have quoted a client and the exchange rate will have changed within the 24-hour validity period of the quote,” says Busi Nhlapo, md of ITC Destination Express. Busi books corporate travel to Angola and Zambia, which predominantly price their hotels and itineraries in dollars. She says if you have not prepared yourself for

the possibility of the rand’s value depreciating within that time you could find yourself losing money. Busi checks the exchange rate twice a day so that she can quote her clients accordingly. She says that clients too find it very frustrating when their initial quote has increased because of a weakening rand. Although booking travel to dollar-rated SADC countries is a precarious process, corporates are left with little choice and must book travel to where their business is taking place.

Gillian Bronkhorst, Flight Centre travel agent, says she has not seen much decline in the number of business travellers headed to the SADC region – whether the destination’s itinerary and hotel rates are in dollars or not. “I have noticed though, that my corporate clients are trying to source cheaper hotels and will even stay in guesthouses in some countries to keep costs lower,” she adds. When corporate travellers do choose to stay in guesthouses, they are usually properties that have been recommended to them by their clients or guesthouses that they have sourced after visiting the destination a few times.

In a poll published in the December 16 issue of TNW,

67% of respondents said the weakened rand had forced South African leisure travellers to choose domestic travel over travel in the dollar-denominated SADC region.

As the poll suggests, leisure travellers can exercise more choice when deciding whether to travel in the SADC region.

Salad Nthenda, vice consul for Malawi Tourism, confirms that, although a considerable percentage of South Africans travel to Malawi for business, there is enormous potential for growth in leisure travel.

Salad says South Africa is Malawi’s biggest source market and contributes, on average, over 15% of the country’s international arrivals each year. However, a large majority of hotel rates and itineraries in

Malawi are quoted in dollars. South African travellers

make up over 60% of the total visitors to Swaziland. Unlike Malawi, whose rates are quoted in dollars, Swaziland’s rates are quoted in the local currency, the lilangeni, which is pegged to the rand.

“The weakened rand has had a positive impact on travel from South Africa to Swaziland,” says account executive, Lizzy Moletsane, from the Swaziland Tourism Board. “We see it as an opportunity to capitalise on the fact that travelling in Southern Africa is beyond most South Africans’ reach. We encourage them to consider Swaziland as an option for an international break with a local flavour,” she says.

Operational challengesIT’S NOT just cost constraints that influence South Africans’ decision-making process when booking leisure travel in the SADC region but also their perception of those destinations, says Chandré Reddy, ceo of Aurulent Travel in Cape Town. If South Africans go on an international holiday, they want to feel as if they have left home. If they have to pay expensive rates for a local atmosphere, they feel that they might as well book travel to other continents, she says.

Lead-time issues and communication lapses are some of the other obstacles faced when booking travel to the SADC region, says Alphabet Travel’s, Carol Eedes. While Flight Centre’s Gillian Bronkhorst says she often waits longer than a week to hear from hotels when she makes bookings, Destination Express’s Busi Nhlapo says she has to send a follow-up email when making telephonic bookings with suppliers that are predominantly

Portuguese-speaking to ensure that there is no misunderstanding.

“Sometimes the websites are badly out of date,” adds Carol. “Clients will double-check a quote online and then assume that the travel agent has misquoted them, then once they arrive in the SADC country, they discover that not only were the rates on the website outdated but that there were other costs included in the booking that the website did not reflect.” When booking travel to the SADC region, Carol recommends that agents are upfront with their clients about the types of challenges that may be involved. “Ultimately your business is only as valuable as the customer care you provide,” says Busi.

Cover your assets Chandré advises travel agents to “cover their assets”. She says that travel agents have to ensure that they protect themselves by including specific terms and conditions in their quotes. Destinations within the

SADC region are employing various strategies to try to attract more South Africans. Malawi Tourism says this comes down to understanding your market and what it wants. In line with this, Malawi intends to develop itself as a MICE destination, says Malawi Tourism’s Salad Nthenda. The launch of Peermont Hotels Resorts and Casinos’ newest property, the Umodzi Park in Lilongwe, which houses the Bingu International Convention Centre is a first step in this strategy.

Malawi is also looking to open up Likoma Island to international flights to attract more visitors.

Swaziland Tourism Board’s Lizzy Moletsane says knowing what makes your offering unique is important when trying to attract South African travellers.

“For example, Swaziland is one of the few remaining executive monarchies in Africa and boasts an ancient cultural heritage probably unmatched anywhere in Africa.”

The fluctuating rand exchange rate poses challenges for agents booking travel to the SADC region. Taryn Nightingale reports.

Salad Nthenda

JOBSCOMMUNITYNEWSBirths, deaths, marriages, promotions – we want to know! Please fax or e-mail TNW’s Debbie Badham, at [email protected] or (011) 327 4094.

QUICK READ FOR BUSIEST PEOPLE Wednesday February 3 2016 n 11

Appointment

To advertise on this page

email [email protected]

For a FREE subscription

to TNW contact

Gladys on [email protected]

Pick of the week

These adverts were selected from the vacancy section of www.travelinfo.co.za For more details contact [email protected]

brought to you by

TNW

7529

Business Development /Key Accounts Executive – Johannesburg NorthProfessional Career ServicesExperience in the events/conferencing industry. Good understanding of venues, corporate clients. Cold calling, good sales track record. Email: [email protected]

Conference Co-ordinator – Cape TownQuantex Recruitment Group3+ years’ conference experience essential for this leading events company. Experience with pre-planning, organising, monitoring & following up on events required. Email: [email protected]

Key Account Executive – Cape TownLee Botti & AssociatesSouth. Maintain relations on VIP accounts for luxury tour operator. East & Southern Africa product knowledge essential! Sal R20 000. Email: [email protected]

Languages Expert – Johannesburg NorthEquity Connections ccEuropean languages experts with sound FIT experience highly sought after. French, German, Spanish preferred. In-depth knowledge of South/Southern/East Africa. Email: [email protected]

National Sales Leader – RandburgFCM Travel SolutionsAre you hungry, persistent and result orientated on a national sales level? Let us help you take our business to the next level. Email: [email protected]

Intermediate/Senior Corporate Consultant – East RandWendy’s Travel PersonnelWork closer to home for well established, progressive travel agent utilising your corporate consulting skills. Amadeus essential! Email: [email protected]

Global Sales Agent – Western CapeProfessional Career ServicesSell outbound car rental to the trade. Travel industry knowledge and understanding of consultants. Able to travel to SA regions. R20000-R25000 + ben. Email: [email protected]

Ticketing Consultant – N/Suburbs, Cape TownQuantex Recruitment GroupPump out tickets in a busy travel office. 2+ years’ ticketing experience & excellent fares knowledge. GDS: Amadeus - Galileo - Worldspan - Sabre. Email: [email protected]

Sales/Marketing Coordinator – Cape TownLee Botti & AssociatesSouth. MICE leader in inbound travel seeks marketing whizz to support successful sales team. R10 000 + benefits. Email: [email protected]

In-Bound Reservations Consultant – SandtonEquity Connections ccFully utilise your sound working knowledge of Africa. Plan, design, cost itineraries within budget. Handle full functions of reservations. Email: [email protected]

National Business Development ManagerCorporate TravellerCold calling, sales pitches and targets your cup of tea? Take your career to the next level on our uncapped earning module. Email: [email protected]

The team at Lufthansa German Airlines is deeply saddened

by the passing of Gerhard Kemper on 20 January 2016.

Gerry, as he was known to the trade, joined Lufthansa’s New York sales team in 1955. Over a period of 35 years his posting took him to the USA, Germany, South America, Far East, to the airline’s Seeheim training

centre and finally in 1984 to Johannesburg. He headed Lufthansa’s operations as

General Manager Southern and Eastern Africa, responsible for the airlines passenger

business, cargo and airport management. He was a liberal thinker and unbeknown to many, played a pivotal role in South Africa’s

move towards democracy by supporting IDASA (Independent Democratic Alternative

for South Africa) in the 1980’s, including providing air transportation for the ANC and

the then government to meet in Dakar.

Gerry retired in 1990. He and his family opted to remain in Johannesburg making

it their permanent home.

Gerry is survived by his wife Halor and four children Jessica, Nina, Florian

and Boris.

TNW7530

Obituary

Bushwise has appointed Vaughan Jessnitz as a FGASA Field Guide trainer. Vaughan has been in the tourism industry for the last 10 years, guiding and managing camps throughout South Africa, although focusing more on the Greater Kruger. Alongside his career he is also involved in various conservation and research projects specialising in entomology and bio-diversity mapping throughout South Africa. In 2002 he was awarded the Derik Grey Award for his research project focusing on using certain species of butterflies and beetles as biological indicators, and represented South Africa at the SIIRS conferences in Stockholm, Sweden.

Vive La France!At a recent workshop hosted by Atout France at the Radisson Blu Gautrain hotel, suppliers across the French tourism industry showcased their products to agents. Pictured here at the workshop are (from left): lllona Du Bruyn (GSA sales representative, World Travel), Hélène Bezuidenhout (regional manager, Atout France), Héloïse Deparisse (hotel sales director, AC Hotels) and Roxane Guerin (DMC manager, CI Experience). Photo: Taryn Nightingale

Promote your product in our Luxury Travel Feature

TNW7531

TRAVEL NEWS WEEKLY

Issue date: 16 March 2016Booking Deadline: 17 February 2016

Contact: [email protected]: +27 11 214 7356


TNW NEWS

brought to you by eTNW and TRAVELINFO

eTravel is the ITC market leader in South Africa and assists senior Travel Consultants and Travel business owners to realise their dreams. If you have ever dreamt of owning your own travel business or would like to cut costs by doing away with your IATA license and improve your current business efficiencies then you should call eTravel. We run the back office for over 200 Independent Travel Companies and specialise in making your travel business a success by offering the best commissions, overrides & a comprehensive support structure. If you have a client base, 5 years travel consultant experience or already own your own business but want to make more, then contact us! You’ll be amazed at how easy it is!

Contact Tammy on 0861eTrave1 or [email protected]

TNW7136

Weak rand – no increase in all-inclusive bookingsHave you seen an increase in bookings for all-inclusive cruise packages as a result of the rand’s current status?

No Yes

To the point

TNW7413SD

More changes at SAADebbie baDham anD

Dorine reinstein

SAA has confirmed that Ray Nkwe, general manager for RSA, has

left the airline. Ray’s primary role was to provide leadership to the RSA management team and staff and to ensure full delivery of the airline’s Long-Term Turnaround Strategy (LTTS) in the region.

Spokesperson, Tlali Tlali, says SAA will announce Ray’s replacement in due course.

“This is a fairly sudden resignation and does leave a void,” says Vanya Lessing, ceo of Sure Travel. She comments that, with the understanding that the trade is critical to SAA’s survival, the airline needs to develop a stronger line of communication.

The lines of communication at SAA are blurred and there is an urgent need for the airline to develop greater continuity in its relationship with the trade, agrees Rod Rutter, chief operating officer for XL Travel.

While Allan Lunz, md of Bidtravel, shares the opinion that it’s difficult to work with an organisation that is in a constant state of change, he believes SAA’s relationship with the trade has remained positive.

Dinesh Naidoo, group operations director of Serendipity Worldwide Group, told TNW currently none of SWG’s corporate clients have indicated they want to move their business away from SAA. However, he warns that if the airline doesn’t “get its act together”, a move away from SAA from the corporate market could be on the cards.

Indeed, one corporate SAA platinum member, Professor André van Niekerk, says he is actively looking for alternative options for his business travel needs. “The only option that comes to mind is BA Comair,” he comments, adding that unfortunately the carrier doesn’t offer the domestic frequencies he requires. “The latest flight BA Comair offers

from Johannesburg leaves at 18h00, which is just too early for any corporate traveller,” he says.

Comair is always looking for opportunities to expand its services in the domestic market, says Iain Meaker, BA Comair executive manager commercial distribution. He says if SAA were to reduce its capacity or frequency in the domestic market, BA Comair would look at increasing its offering.

The reason why BA Comair currently doesn’t offer a later flight on the JNB-DUR route is not politically motivated, Iain says. “The domestic market is a free market with no slot constraints.” He says BA Comair previously operated later flights to Durban but found they did not perform as well as expected. “The flights are timed to allow for international flight connections later that evening for those folks travelling overseas on BA and other interline partners.”

Checkout Tours is running a special for travellers visiting Zanzibar. Travellers booking before February 29 can stay at the three-star Coral Rock Hotel from R8 470pps, the four-star Villa Kiva Boutique Hotel from R10 825pps or the Langi Langi Beach Bungalows from R10 965pps. Each option includes return flights on Mango airlines, airport taxes, seven nights’ accommodation with breakfast daily and return airport transfers. Pictured here preparing for an exciting island getaway are Checkout Tours’ Giles Clinton (director), Kerry Woodgate (consultant) and Christopher Simonsen (product and operations manager). Photo: Megan Fischer

Exotic island experience

MSC Cruises has suspended calls to Turkish ports until further notice. This follows Crystal Cruises’ recent decision to reroute its voyages that were due to visit Turkey. The decision will affect MSC Magnifica’s itinerary, which will sail from Venice from March 26. The weekly calls in Istanbul and Izmir that were scheduled to take place from March 29, will temporarily be replaced by calls to Athens and Mykonos. The cruise line has cited growing concerns by guests as a result of the recent suicide bombing in Istanbul as the reason for the suspension.

59%41%

Uber plans a travel service Page 2 Oil price falls but...

Documents

Transcript of Uber plans a travel service Page 2 Oil price falls but...