September
Transcription
September
In the Premium & Frequent Flyer feature, we plot the rise and rise of premium economy Photo: KQ and round up the latest benefits for loyal passengers. From page 14. The demand fo r c r u i s e s h a s s t aye d buoyant this year, despite fluctuations Photo: Regent Seven Seas in pricing. See the Cruises feature, from page 10. New low-cost regional carrier, flyafrica.com takes flight. More on the airline’s syndication and growth strategy on page 8. Travel Industry Review Published by TTG Southern Africa International operators warn of huge drop in inbound tourism due to visa regulations And outbound industry tries to stop the clock on new child travel rules in bid to limit losses BY SARAH CORNWELL OPERATORS in overseas source markets requiring visas are warning that the introduction of new immigration rules could cut their business to South Africa by more than half, as pressure mounts for Home Affairs to review its new policy, which was drawn up without industry consultation. Local inbound tourism stakeholders are also warning that new requirements – specifically the collection of biometric data for foreign visa applicants and Home Affairs’ new child travel policy – will drastically cut business, leading to loss of jobs and potential closures. At the end of last month, Home Affairs was still main- taining that the forecast losses were grossly overstated and still “speculative”, despite a growing number of experts in the industry stating losses and damage to brand South Africa were inevitable. The department had still not met with industry representatives to review its new policies. T he Tou r ism Busi ness Council of South Africa and the Association of Southern African Travel Agents, have appealed for a one-year stay on the start date for the new requirement for families, demanding those travelling with children to produce unabridged birth certificates in addition to passports at international immigration checkpoints. They maintain the exten- sion is necessary to provide time to explore alternative solutions which would satisfy Home Affairs and the interests of the travel trade, as well as to communicate the new policy to travellers continued on page 4 Ebola crisis: more restrictions apply for SA travellers BY SARAH CORNWELL & DOMINIC WARDALL FURTHER operating restrictions are expected to be introduced as the Ebola crisis continues to escalate, with South African passport holders now barred from travel to affected West African states except in exceptional circumstances. South Africans may also increasingly be asked to provide health certificates when entering international, longhaul destinations, with the outbreak now declared an international emergency. The requirement has already been implemented for travel to Indonesia. I ndone sia’s Con su lat e General in Cape Town said the precautionary measure continued on page 2 AVIAREPS staged its annual Airline Mini Fair in Cape Town last month, joined by dozens of international and regional carriers and some of the Cape’s leading retail companies. More than 250 travel consultants attended, with a briefing from Home Affairs shedding some light on new and still pending changes to South African immigration legislation. Pictured on show day, Air Namibia sales executives Winnie Karamata (seated left) and Eloise Liebetrau. See page 18 for more. Pentravel’s senior managers, store managers and preferred suppliers marked another year of sales growth at its annual managers’ conference, held recently in Bangkok. Pictured above (l to r): Michelle Bergset, Pentravel National Sales Manager; Joanna Overbeek, Gauteng Regional Manager; Karen Swaby, Pentravel Cresta Shop Manager; Julie Katopodis, Pentravel East Gate Shop Manager; Ursula Craig, Pentravel Fourways Shop Manager and Samantha Boyce, Pentravel Benmore Shop Manager. Chief Executive Officer, Sean Hough, shares his expectations for future growth on page 6. SA Tourism to overhaul foreign arrival counts New methodology to provide credible stats, more accurate tourism growth projections BY SARAH CORNWELL SOUTH African Tourism has committed to overhaul the way tourist arrivals are reported. The change is part of the association’s updated five-year strategic plan, set to kick in after the current financial year. “Until now our deliverable has been based on foreign arrivals to the country. But, from the start of our 2015/16 financial year, we will meas- ure on the basis of tourist arrivals only,” explained Chief Executive Officer, Thulani Nzima. Mr. Nzima first revealed the intended change in an address at the Tourism Business Council of South Africa’s Annual General Meeting in July. The topic has been widely debated by industr y analysts, who maintain the current definition of a tourist has skewed South Africa’s foreign arrival and tourism statistics. SA Tourism has also provided a definitive split in its count of arrivals for the 2013/14 financial year. According to the ogranisation’s latest published figures, South Africa received 14.86-million foreign arrivals in the 12-month period, 9.61-million of whom were tourists. Mr. Nzima said the organicontinued on page 5 News Digest Ebola crisis: travel restrictions apply for SA travellers continued from page 1 had been applied “to protect the country’s health and prevent the spread of the virus to other areas”. Certificates must be produced at the time visa applications are lodged. Because of potential leakage of borders, the South African Department of Health has also imposed new restrictions, closing the country’s borders to foreign nationals who have travelled through high-risk areas, including Liberia, Guinea and Sierra Leone, within a 30-day period. For medium and low-risk countries, surveillance has been enhanced. Restrictions on travel to and from the Democratic Republic of Congo were expected to be applied in the region as a precautionary measure after a less serious strain of the virus was detected in the central African state. Several countries unaffected by the virus have also closed their borders to entry by travellers from affected countries. In South Africa, corporate travel specialists expect internal travel policies could restrict if not ban travel further if the situation intensifies. The Ebola outbreak was declared an inter national emergency last month with the World Health Organization reporting more than 1,300 cases and 720 deaths across Guinea, Liberia and Sierra Leone between March and the end of July. Although only one probable case had been detected in Nigeria by the time an emergency committee was convened, the WHO said the virus’ jump into another state represented a “significant development”. Health officials have demanded exit screening of all travellers at international airports, sea ports and major land crossings in a bid to stop the spread of the virus. Airlines have also been advised to take strict precautions and have been briefed on how to deal with any suspected cases of EVD. WHO officials are adamant any infected person should not be allowed to travel, unless travel is part of an appropriate medical evacuation. But international air transport authorities maintain the risk to air passengers is low. South African Air ways said late last month a decision on whether to suspend f lights into West African states known to be affected was still under consideration. Howeve r, Br it ish A i rways became the second ma- Most Read stories from the past month... 1 2 3 4 5 New immigration rules threaten schedules say airlines. Kenya abandons in-person visa applications. Industry slams government intransigence on child travel. SA immigration on high alert as Ebola outbreak widens. FlySafair outlines new pricing model for first local flights. jor international airline to withdraw from the region last month when it cancelled f lights to Sierra Leone and Liberia. Those routes were still under review at the time of writing. Emirates has also withdrawn from Guinea in response to concerns over the Ebola crisis and its potential impact not only on the Gulf but also the carrier’s extensive connecting network. On the advice of the Kenya Ministry of Health, Kenya Airways later moved to suspend operations to Sierra Leone and Liberia. Borders are also closed to any passengers who had been or passed through Liberia, Sierra Leone and Guinea. The airline would continue to fly to Abidjan, Dakar, Bamako, Cotonou, Lagos, Abuja and Accra, with all flights to Kenya’s Jomo Kenyatta International Airport from West Africa, Kigali and Addis Ababa allocated different gates where passengers were being re-screened. This includes transit passengers. “What we see is reschedu li ng of t r avel wh ich is natural in cases of such out breaks,” said Kenya Airways Regional Manager Rosemary Adogo, of the early impact on passenger volumes. Retailers said they would continue to monitor the situation. “It is ver y diff icult to [quantify]… but it is definitely having an effect,” said XL Chief Operating Officer, Rod Rutter. Asked whether a more sweeping and stringent ban could follow, he commented: “It will come… if there is a massive outbreak. Then it becomes serious. At the moment, it is still under control. “One doesn’t know what is going to happen. Kenya Airways and others are f lying into different parts of Africa, and that is their prerogative.” However, Mr. Rutter added: “Corporates are holding back [as] perception is an issue. There is no guidance as to whether you should or should not go and corporates are watching the WHO reports for updates.” BidTravel Managing Director, Allan Lunz noted a decline in corporate travel: “We are not saying anything to our corporate clients [to stop travel]; they are responsible enough. “You are going to f ind some will go, if they have to business-wise, but most will not. “ T he re a re more t h a n 1,100 people that have been affected… Anybody can get TIR Southern Africa • September 2014 this and no one is going to go looking for trouble unnecessarily. “Travel to that region will certainly subside until the green light is given that it is pretty safe to go,” he said. In its last available update, the Department of Health said South African citizens would still be permitted to travel but need to obtain permission from an international task team established by the department, and face stringent screening and questioning at international immigration checkpoints. DATES ANNOUNCED FOR 2014 TRAVEL INDUSTRY CHARITY EVENT enews updates ORGANISERS of the annual Cape Town Travel Industry Charity Event, now in its tenth year, have appealed for suptir.co.za/enews port for this year’s fundraiser, themed ‘TICE making a difference’ to mark the special anniversary. The event will be held on October 11 at the Cape Town International Convention Centre. This year’s recipient is non-profit organisation Molo Songololo. Individual seats are from R600 pp. Tables of 10 available. To book: [email protected] or contact Cynthia or Larry on 021 551 5500. THE TRAVEL CORPORATION REMEMBERS FORMER TRAFALGAR MD THE Travel Corporation has paid tribute to former Managing Director, Gawie Roussouw, following his death last month. Mr. Roussouw spent 22 years with the company, primarily responsible for the development of Trafalgar Tours, its flagship brand, in South Africa. Mr. Roussouw is survived by his life partner, Marna Grobbelaar and their families. “Anything he committed to doing or when he said something, you could take it to the bank. He beat every budget he ever presented to us,” recalled Stanley Tollman, The Travel Corporation Chairman. “[He] always presented himself meticulously and spoke in a well-mannered, elegant manner.” Theresa Szejwallo, Trafalgar’s current Managing Director, who also worked with Mr. Roussouw for many years, said: “He was a true gentleman and highly respected throughout the industry.” Subscribe to receive TIR 360° e-news weekly: [email protected] 2 Seven more staff members from across the Club Travel group have been named Exceptional Employees. Nominated by Lindi Drummond of LTJ Travel, they each received a gift certificate and day off in which to spend it. The winners are: Jo Fraser; Jean Thomas; Michelle Hogg; Shireen Naude; Nqabakazi Simelela and (pictured above, l to r): Natasha Pottier; Nicolene van Blerk; Pat Manyonta and Deidre Fourie. Howeve r, t he D e pa r tment of Health has appealed to South Africans to delay travel. A British health expert on communicable diseases said late last month that he expected the outbreak to last at least six months and it was being exacerbated by the poor sanitary conditions, medical facilities and lack of training of medical staff in the West African countries. FlySafair adds George to new launch line-up LOCAL low-cost airline, FlySafair, will int roduce scheduled services between Cape Town and George from November 13. It is the third route for the new carrier, which starts operations in October. FlySafair will launch on October 16 with up to four flights per day between Johannesburg and Cape Town. Services between Cape Town and Port Elizabeth begin October 31. The carrier’s pricing strategy is to charge a base rate, which would secure a seat on the flight and allow for two pieces of free carry-on luggage weighing no more than seven kgs in total. News Digest DHA implements new emergency travel procedure EFFECTIVE this month, the Department of Home Affairs will no longer issue temporary passports but plans to provide new emergency travel certificates where required. The department said new documentation would be issued on the same day as application. Travellers may apply for emergency travel cer tif icates in the event a passport is lost during travel. They will also be granted to assist family members who need to travel to countries which accept ETCs in order to enable travel for families in distress or in the event that a family member has died, Home Affairs advised. The Department claims the interim travel document was redundant as turnaround times for passports had been improved to 24 days or 13 days when applicants used the DHA’s Live Capture system. Briefly. T he Kenyan government has put on hold its planned new visa policy for South African passport holders, which was originally due to apply from September 1. The High Commission said an update would be provided once talks between the two countries were concluded. International travel operators warn of massive drop in inbound tourism numbers due to visa regulations continued from page 1 locally and abroad. In preparation, travel intermediaries and suppliers have advised customers to apply for unabridged birth certificates ahead of any trip depar ting this month but ending in October, and well ahead of the December/January peak outbound South African holiday period due to unpredictable turnaround times for documentation. Airlines are warning passengers that, without the necessary paperwork, they would be denied boarding. The airline sector has predicted a downturn in international arrivals owing to the new rules, sparking concern over the impact on direct airline services into South Africa, which could be jeopardised if passenger volumes drop by the extent predicted. Airlines lodge new appeal for talks A joint, written appeal by 20 international and regional airlines to Home Affairs last month to halt pending changes claimed losses in tourism revenue could reach R10-billion a year, even more than the region’s Board of Airline Representatives had originally forecast. Speaking for the group, Regional Manager for the Middle East and Africa at Virgin Atlantic Air ways, Simon Newton-Smith, said there had been too many “missed opportunities” to engage with the tourism sector, despite Home Affairs’ insistence that its doors were open for dialogue. The group’s growing concern was echoed by Western Cape Minister of Economic Opportunities, Alan Winde, who suggested an international offselling by overseas operators could rapidly follow implementation of the new rules. Mr. Winde appealed for urgent inter vention f rom government last month after concerned hoteliers, travel agents and tour operators shared warnings from clients gaba’s visa regulations will cut Chinese travel to South Africa by 70 percent. “Reports suggest that Chinese travel agencies are already diverting clients away from South Africa and that key agencies have stopped marketing our destination. This is a market which has shown a 55 percent growth in visitor numbers to South Africa since 2009,” he charged. A r r ivals f rom South American markets, includ- the documents. “This is a problem that will be faced in all nonspeaking English markets [and] will hit us hard,” said Mr. Winde. Home Affairs has, however, indicated its intention is to accept alternative, locally issued equivalent documents, which do not need to be translated, but contain the required information. The concession was announced after a meeting be- “Reports suggest that Chinese travel agencies are already diverting clients away from South Africa and that key agencies have stopped marketing our destination. This is a market which has shown a 55 percent growth in visitor numbers to South Africa since 2009.” – Alan Winde, Western Cape Minister of Economic Opportunities in several countries that they should “brace for a halt in business” on October 1. Gigaba’s visa regulations will cut Chinese travel to South Africa by 70 percent “Early indications are that the new visa reg ulations will do significant damage to tourism numbers from South Africa’s traditional and emerging markets. “It is also predicted that South Africa’s international meetings economy will take a massive knock. Organisers avoid destinations which incur additional costs for delegates, such as for biometrics,” he warned. Mr. Winde predicted: “Gi- ing Brazil and Argentina, both key emerging markets for South African Tourism, would also be hit, Mr. Winde warned. “Sout h A mer ica is a n important emerging source market. In 2012, South Africa welcomes close to 80,000 tourists from Brazil, up from just over 32,000 in 2009. “Tour operators in South America have explained that their countries also have strict processes when travelling with children. Parents have to produce all the necessar y documentation including birth certificates. However, the cost of translating the birth certificate into English in these countries is just over R1,000. In addition, it takes about two weeks in these countries to translate tween Home Affairs Minister, Malusi Gigaba and Tourism Minister, Derek Hanekom at the end of July. The two met to discuss and address “unintended consequences” of the new legislation. Both departments were confident that the phasing in of biometric data collection capacity at ports of entry could lead to the phasing out of transit visas and conceded that the in-person visa application requirement could mean the number of visa facilitation centres “as and when required to do so” would need to be increased. T he Tou r ism Mi nist r y will assist in determining which countries required a larger visa processing and biometric data capturing ca- pability, they said. But the developments have fuelled criticism over South Africa’s readiness and ability to implement its own policy. Mr. Newton-Smith, on behalf of his counterparts in the region, challenged: “Home Affairs all but admitted that it is not prepared for and had not considered the consequences… adding further weight to a travel industry call for a twelve month postponement to some of the new laws. Furthermore, based on recent public statements by Jackie McKay, DDG Immigration Services, it is clear that the ‘international benchmarking’ behind some of the new requirements is based dangerously on inaccurate information. “ T he De pa r t ment of Home Affairs is clearly confused and trying to address the right problems with the wrong solutions or the right solutions at the wrong time… “The global travel community want to help South Africa avoid a tourism, PR, economic and political disaster, but the DHA seems intent on that course. Dear Mr. Gigaba and Mr. McKay, please help us help you,” said Mr. Newton-Smith. T h e E u r o p e a n Tr avel Agents’ and Tour Operators Associations and World Travel Agents Associations Alliance have also called on the government to reconsider its position and repeal the new rules. They also recommended that the government investigate a best global approach to tackling child trafficking in travel, for fear of the impact on South Africa’s saleability. KQ names more Dreamliner routes KENYA Airways has introduced Boeing 787 services on its routes to Bangkok and Hong Kong as additional new aircraft enter service. The carrier took delivery of its third Dreamliner last month. Three more are ex- 4 TIR Southern Africa • September 2014 pected to enter service before the end of this year. Johannesburg became the second KQ destination after Paris to feature the 787 in July. Chief Operating Officer Mbuvi Ngunza has indicated a new Nairobi – Cape Town route is currently under consideration. “This makes sense from a tourism point of view, and we already have sales representation in Cape Town,” he said. News Digest Overhaul of foreign arrival counts... continued from page 1 sation was still operating in a “very challenging environment”, with many markets where it has a presence still trying to recover from the global financial crisis: “While the recovery is happening, it is very slow in many markets, with disposable income limited and even shrinking in some markets where governments have introduced austerity measures,” he remarked. SA Tourism has also reviewed its portfolio of strategic markets, where it has a presence or spends its marketing budget, for the next three years. Core markets in Africa are Angola, Mozambique, Nigeria, Kenya, Tanzania and South African domestic travellers. Investment markets in Africa include Botswana, the Democratic Republic of the Congo, Ghana, Lesotho, Uganda and Zimbabwe. In the Americas region, Brazil has now been identified as a core market, with Canada identified as an investment market and Argentina as a ‘watch-list’ market. SA Tourism plans to open a new office in Brazil this month. In the Asia/Australasia region, China has joined India and Australia as core markets, with Japan and South Korea declared investment markets. In Europe, France, Germany, the Netherlands and the UK remain core markets, with Italy and Russia listed as investment markets. Marketing activities in non core markets, such as Argentina, Chile, Mexico, Peru and Columbia, will be served by SAT’s Brazil office. SAT will develop Japan, South Korea, Indonesia, Vietnam, Singapore and Malaysia through its office in China. New offices in Nigeria, to be followed by Angola and Kenya, will be responsible for more regional growth. Mr. Nzima added that although the weakening of the rand had been a positive development for inbound tourism, it had eroded SAT’s marketing budget in many markets and by as much as 30 percent. SAT is also looking to offset a downturn in domestic tourism arrivals, which slid by approximately 500,000 visits compared to the previous financial year. Although a fairly significant shift in SAT’s mandate, primarily responsible for growing brand South Africa in foreign markets, SAT is targeting 18-million domestic tourists by 2020. Other key objectives are to grow tourism’s contribution to the economy by 1.5 percent per annum and to increase foreign arrivals to 15-million by 2020, to sell South Africa as a business events destination, and continue to provide quality assurance for tourism products. Briefly. T he Cit y of Cape Town has renewed its partnership with Cape Town Tourism for a further three years, targeting increased arrivals from African states as well as other new international markets. It also hopes to address seasonality issues and to secure additional funding from the private sector. The Travel Corporation’s Cheese for Charity fundraising initiative has raised more than R10,000 for the Robin Good Initiative Vegitunnel Project. Pictured (above) at the benefit, hosted last month, TTC National Sales Manager, Lara May with Kosie Nagel, Land Warehouse Leader for Flight Centre South Africa, who won a bottle of wine for his winning paper plane design. Fastjet boosts frequencies FASTJET will increase frequencies between Dar es Salaam and Harare, to three per week from the end of September, after reporting heavy demand for the new service. The airline’s first flights were a sell-out, said Chief Executive Officer, Ed Winter. “Fastjet has responded to requests from Zimbabweans and Tanzanians asking for a direct route connecting these two cities with affordable, reliable flights… With future bookings also looking strong, we’ve decided to add a third rotation each Thursday,” he said. “Until now, travellers had to depend on lengthy road transportation or have been excluded from air travel by the significant cost of flying an indirect route...” T he Zi mbabwea n gove r nment has said it would like to see fastjet’s presence in the country expanded. TIR Southern Africa • September 2014 5 COMMENT Hospitality is the philosophy for success WHETHER it is a hotel, an airline, a cruise line, a car rental company or any supplier with direct contact with the customer and providing a product, it is in the service business. So, despite the wide range of different product categories and the standard or star rating of each of the products, customer service and competitiveness are crucial. No customer expects the same benefits in a one-star product as a five-star. But customer service, driven by training, attitude, company culture and management, is what separates the good from www.tir.co.za EDITORIAL DIRECTOR John Wardall MANAGING EDITOR Sarah Cornwell Tel: 021 789 0053 Mob: 072 772 2189 [email protected] ASSOCIATE EDITOR Dominic Wardall CONTRIBUTORS Richard Holmes Lisa Witepski Melany Bendix In a challenging financial year, travel agents are concentrating on value products and stepped-up customer service. This month, TIR asks leisure retail specialist Pentravel how agents and their customers are responding and how consultants can overcome pricing challenges. Chief Executive Officer, Sean Hough, weighs in… Andrew Watson Tel: 021 685 8772 Mob: 071 677 3858 [email protected] Which segments of the market are performing well? CIRCULATION [email protected] “We are a leisure only company and, for us, Mauritius has been selling like hotcakes! South Africa is also performing very well, while Europe sales have been challenging. Cruising is also popular and any fully-inclusive product, but coach sales have been under pressure.” ACCOUNTS Beverley Gough Brenda Smith ADMINISTRATION Nerina Nicholson Europe: Colin Murdoch Thailand: World Media Co. Malaysia: Raffles Int. Media PRINTING Formeset Printers ©TTG Southern Africa 2014 Published by: TTG Southern Africa CC Reg no: 1995/030913/23 What has stimulated demand? “I think what is really driving Pentravel’s results is excellent customer service. We are a much smaller business and, therefore, not a reliable indication of general economic trends. But profits are up 26 percent in the last nine months of our current financial year (to June) and 588 percent over the past four years. Those figures have been achieved despite a constantly challenging environment. “As we said a long time ago, we are not participating in any recession, rather focusing on our own business, our own customers and our customer service. I believe, really, that was the right strategy. We have avoided the recession word and become obsessed about relationships with our clients. Travel is no longer about selling products.” Air fares continue to rise. What impact has this had on booking trends and product appeal? “ We h a ve n’t s e e n a n ything significant to indicate that airfares have risen, nothing to cause us a concern and, in fact, we are still getting ad hoc seat sales… In our recent ads, London exD u rba n wa s R8,190 a nd Mauritius ex-Johannesburg was R5,670. With Emirates adding a seventh daily flight from October, it is bound to make an impact in the market and probable advantages with lower fares.” GOOD follow us on twitter THE twitter.com/TIR_SA The industry could not be more united in its coordinated opposition to the incomprehensible new immigration regulations – incomprehensible to everybody except Home Affairs, that is. The ability and willingness by all industry bodies to work together have been impressive. 6 late that culture into other countries but it certainly provides a template for the ideal in service attitudes. The practicality of reward in a business environment obviously trumps the philosophical ideal but it is both the attitude and the delivery of service which has the most impact on customers. I n Sout h A f r ica , w it h many notable exceptions, we often fall down on the product and delivery of service, even though the attitude may be perfectly acceptable. It is almost always a failure of management and training. In the United States, as a clear example of the opposite end of the issue, the product and delivery of service, even at the lowest economy end of the range, is usually very good. But the attitude and, particularly, the aggressive attitude towards tipping – the expectation of reward – can be very off-putting to foreign visitors. It all comes down to that word hospitality, the byword for every sector of the industry, and one which should be at the forefront of the minds of management and employees in creating the ideal environment and experience for their customers. Travel is no longer about selling products ADVERTISING Dominic Wardall Tel: 021 789 0053 Mob: 082 620 6425 [email protected] REPRESENTATION UK: MW Media [email protected] It is often a cultural thing, where service can sometimes be seen as demeaning, and requires consistent training and management to address. We could all take a lesson from the Japanese, who have it taped with their philosophy of omotenashi. It is almost an art of anticipating what a guest would like and providing an environment and service without any expectation or desire for reward. That is why tipping is offensive in Japan and guests who ask for things directly are considered ill-bred and bad mannered. It is very difficult to trans- Industry View PUBLISHER John Wardall HEAD OFFICE 9 Ruby Terrace Noordhoek Cape Town PO Box 745 Noordhoek, 7979 Tel: 021 789 0053 the bad or merely indifferent which, in this industry, is almost as bad. To sum it up in one word, it is the philosophy of hospitality, which should define this entire industry. Ideally, checking in for a flight or a car rental should be a similarly pleasant and st ress-f ree experience as checking into a hotel. And there is no reason why the one-star check-in should be any less welcoming and hospitable than the five-star. In fact, the personal attention is often better at the lower end, a clear reflection on management. TIR Southern Africa • September 2014 What are you concentrating on now? “We always felt 2014 would be a strong year for fully inclusive and destinations like Thailand – and we were correct. Cruising has also held its own.” What do you do in difficult times to maintain demand? “Relationships, relationships, relationships… We will keep focusing on customer service and relationships.” And to build new business? “Repeat bookings are very high but we have also had a very serious referral strategy this year, which has generated an incredible amount of new business…” THE CONGRATULATIONS to our latest Spotted with TIR competition winner, Gaynor Neill, GM of Cruise Vacations, the lucky winner of a stylish American Tourister San Francisco 66cm Spinner suitcase, valued at R1,199! Gaynor was spotted at the helm of the Star Flyer in the Balearics. Explore new horizons with American Tourister. With American Tourister, travellers can enjoy stylish, high-quality luggage without dipping into their spending money. With its own distinctive design and a young, casual look, the American Tourister San Francisco is ideal for both corporate and leisure travellers. The range is available in grey, blue and red. Ultra practical features include a large U-shaped front pocket, translucent piping corner protection, a comfortable integrated top handle, a stitched bumper for base protection and lockable zippers on the main compartment and front pocket. Suitcases are also fitted with large inner mesh zipper pockets and two webbing packing straps with a buckle closure. The American Tourister San Francisco is available from top luggage outlets. For stockists, call 031 266 0620. BAD Having made a completely uninformed stuff-up of new immigration and child travel requirements, clearly lacking an understanding of the implications, new Home Affairs Minister, Malusi Gigaba, has stubbornly dug in his heels. Loss of face is clearly more important than economic consequences. THE UGLY Ebola in West Africa has airlines and immigration authorities on alert. If it spreads to other parts of the world, not only health but also national economies will suffer. Hopefully nothing like the plague in Europe, which started in the 1500s, lasted 400 years, and wiped out a third of the population! News Digest VisitEngland forecasts big SA numbers for 2015 World Cup BY SARAH CORNWELL ENGLAND’S national tourist board, VisitEngland is anticipating a boost in South African arrivals next year, when the Rugby World Cup k ick s of f i n Se pt e mb e r. Matches will be staged at 13 venues across England and Wales, with the tournament concluding on October 31. Affiliate tourist authority, VisitBritain withdrew from South Africa in 2011 as part of a major cost-cutting drive but is considered a key target market for next year’s tournament. In the country for a brief sales visit last month, Visit E ng l a nd Ru gby World Cup Project Director, Jeremy Brinkworth, remarked: “South Africa is still firmly on the radar...” Visitors and supporters “in their thousands” are expect- Briefly. F lySafair passengers can now book First Car Rental inventory via the airline’s website. The agreement is one of the first partnerships for the carrier, set to launch its first domestic operation in October. ed to travel to the UK during the six week period, with France, Italy and Ireland also identified as major contributing international markets. “The expectation is that this will be the biggest World Cup… We are particularly excited about the number of venues: ten host cities, plus Cardiff. The tournament will also take place at the right time for us; not in the middle of our high season. There may be the thought that London will be full, but that will not be the case,” Mr. Brinkworth added. Other long-haul markets being targeted include Australia, New Zealand and the US. “Overall, they will be selling over two-million tickets, targeting between 400- and 500,000 visitors from overseas. Those are pretty big numbers,” he added. Ticket packages are on s a l e n ow t h r o u g h of f i cial travel partners, which include South Africa (SA) Rugby Travel, a division of Tourvest, working in partnership with the South African Rugby Union, said Mr. Brinkworth. A public ballot system will open online this month. An online agent training program me for overseas, English-speaking markets, featuring suggested itineraries and destination guides, is in development. “T here a re suppor ter s tours and packages already on the market… You cannot just f ly in and get tickets,” Mr. Brinkworth stressed. “The Springboks are playing all over England and there is plenty of time and opportunity for visitors to see the rest of the country between games,” he said. BA adds WTM trade fares BRITISH Airways is providing 30 percent discounts on published fares to travel agents and trade partners planning to attend the World Travel Market in London in November. Bookings are open until November 2 for travel between October 30 and November 5, returning between November 2 and November 30. Valid for Club World, World Traveller Plus and World Traveller fares. Travel agents should apply on an IATA 880 form, while other trade partners should submit requests on company letterhead, stating that travel is for WTM. Written requests should be directed to British Airways’ commercial support office. New Product Trafalgar’s new 2015 Asia programme features three new itineraries and Cambodia extension tours. Destinations include Japan, China, Thailand and Vietnam with more extensions available to Hong Kong and Singapore. Early payment savings of 10 percent per couple apply for bookings paid before November 27. Frequent traveller discounts of five percent are also valid. Singapore Airlines will operate seasonal services to Sapporo in Japan between December 1, 2014 and January 17, 2015. Flights will operate twice weekly into the capital of Hokkaido, a ski and snow sports destination. G Adventures will recommence tours to Haiti next year, with five departures set to operate from February 2015. The operators’ full programme will now be priced at a fixed South African rand rate. To promote the new rates, all new bookings confirmed before September 30 will be eligible for savings of 15 percent. Contact Development Promotions. Wilderness Safaris has opened its new Hoanib Skeleton Coast Camp in Namibia. The new low-impact facility is situated in the private Palmwag Concession between the Palmwag area and the Skeleton Coast National Park. Curious Traveller is promoting new Lapland Finland itineraries, with departures tailored for families and also geared for incentives groups. Highlights include expeditions to track the aurora borealis on both husky-drawn sled rides (pictured above) and snowmobiles, an overnight stay at the Laino Snow Village (from late January to March, when the hotel is rebuilt each year) reindeer-drawn sleigh rides and a visit to the Santa Clause village. Six nights from R29,296 pps/ R20,025 for children aged four to 14, valid for travel December 12 – 18, 2014 and including all meals. Additional departures on a private basis and incentive groups recommended January – March. LUX* Resorts & Hotels’ new China resort, the LUX* Lijiang, opens this month. News Digest ON THE spot Flyafrica plans rapid regional route expansion through affiliate strategy THE Zimbabwe market is poised for growth with new regional carrier, flyafrica, plotting new routes and additional frequencies into South Africa. Other intra-African flights will be added as new affiliate operations are launched, explained Group Chief Executive Officer, Adrian Hamilton-Manns, who walked TIR’s Sarah Cornwell through the airline’s syndication and growth strategy, a plan, Mr. Hamilton revealed, has been years in the making… and Victoria Falls. But the next thing we will be doing is connecting to another member of the flyafrica.com family.” Who will steer those new sister operations? “… If we launched ‘flyafrica.com Botswana’ for example, there would be a CEO and [outside] investment. We would be the minority investor and provide marketing support.” Adrian Hamilton-Manns Johannesburg – Vic Falls is flyafrica’s launch route but what is the next step? New routes, additional frequencies or another base? “Everything! We haven’t quite figured out the timing but have five aircraft that we have purchased. Those will be assigned to Zimbabwe, the first of the flyafrica.com family we have launched. [Flyafrica.com] will be a marketing brand, used by each of the operating entities… owned by different businesses in different countries. What we are going to give is a consistent product. “… I moved to South Africa and have been working on this project full time since 2010 [but] have had this dream for 10 years. We also have a project office in Zimbabwe and have another group planning for airline number two and three.” Why Zimbabwe and why is the timing right? “Africa can only expand and develop through air transport. Existing providers are constraining growth through high fares… Africa is honestly the last frontier for airlines. There are low-cost carriers on every other continent, except Antarctica, and they have grown the travel market and stimulated economies. We are here to address that. “We wish to establish a heavy presence in Africa but do not wish to be in South Africa at this stage. Zimbabwe has a large number of tourist attractions, a population that needs to travel, a business base, beautiful game lodges, all the safari [services] tourists want. And, for the last two years, the country has been on a major tourism development drive, which plays to our strengths.” What about additional routes and/or frequencies if a domestic operation in South Africa isn’t on the cards yet? “Beginning September, there will be fourth weekly flight (Johannesburg – Victoria Falls) because of demand… After that, we will be developing routes from Zimbabwe into Johannesburg and other points in South Africa. “Our business model is to develop new routes and stimulate demand… We would love to be in Cape Town and it is a route we are looking at for the Christmas period… “We will also be connecting Zimbabwe with its neighbours and adding multiple destinations out of both Harare 8 TIR Southern Africa • September 2014 And your distribution model? Will flyafrica be working with travel agents via the GDS? “We are displayed in the GDS through an agreement with Hahn… GDS fees are traditionally ridiculously high and, regrettably, they will not lower the cost of participation and cost of a booking. “If we are selling a ten dollar fare, [GDS companies] want eight dollars for booking it… As a low-cost airline, we pass through the cost [so] if a passenger wishes to book through a GDS, a segment fee of approximately R30 per segment would apply. Travel agents can also book via the flyafrica. com website [with] access to even lower fares…” TravelPeople’s next ‘Experience the Diary Best of…’ workshop will be held in Cape Town on September 11. Exhibitors include the Cape Whale Coast; Tulbagh & Ceres (Witzenberg Municipality); Northern Cape; Fancourt; Mantis Collection and the Radisson Blu Le Vendome Hotel. To register: www.travelpeople.co.za are allowing – for a nominal fee – people to make edits to names. It is not for a complete name change but if you misspell a person’s name, you can actually change characters in the name… For agents who book our GDS fares, which are of a higher value, all those GDS bookings are refundable if we can’t fly you. We also invite travel agents to mark up the fare with a service fee… I have always held the view that agents should build up their own business and we encourage them to charge a service fee. We believe in full transparency and will not hide [those charges].” What potential do you see for new low-cost services in South Africa? What other payment options are available? “Of course there is potential but [a new player] would have to be focused on their core business… flying people from point A to point B. “There is growth in demand and there are only two players in South Africa at the moment. Well, four brands but two players, so yes, I believe there is potential for more and there are several people looking and trying. “It is a hostile environment and difficult but, if a company has the correct business plan, they could do well.” “We have multiple payment channels. One of the things that frustrates me is airlines make it very difficult for passengers to give them money. We have fraud protection systems… and also allow people to purchase now and pay later… We have also started to engage with other [service providers] such as Edgars.” There are very high fares in Africa, for travel between countries. What is the reason for that and how do you see that reducing over time in order to grow the market? And flyafrica’s ancillary services? “We believe you should pay for what you want, not what you don’t want. From priority boarding and check-in to lounge access and baggage… I think we have about 18 ancillary options to customise your booking. We also have business class seats on the aircraft and, with that, it is lounge access, food onboard, priority baggage and more room with a wider seat.” But no fuel surcharge? “We hate fuel surcharges! They are used by airlines to mask what they charge passengers… Customers and, disturbingly, travel agents believe that is a government charge… but it is not. Taxes in South Africa are no more expensive than Asia… but one of the things [raising fare prices] is the fuel surcharge. The price you see on flyafrica.com is the price you pay…” Are fares commissionable? “No, we don not pay commission. However, if you use the agency deposit scheme, we pay five percent on the amount deposited with us. Those funds go into an account, or trust, so that the money is protected. The other thing is that we “We have a ‘dare to compare’ feature on our website to [show disparity] but, overall, the view for many decades has been that people who can afford to fly in Africa can afford to pay… Africa is used almost like a money box for a number of airlines… to subsidise losses in other parts of their business. There are airlines that make a lot of money in Africa and then lose it flying long haul. “The second reason is, airlines generally don’t have an incentive to offer you low fares unless there is competition… Why, if you are full, would you lower fares? Why do airlines charge so much? The answer is: because they can. [Competition from] people like fastjet and ourselves is what will lower fares.” Is there room for government in an airline and what challenge does protectionism pose? “Is there room? Yes, and I can think of several airlines that are government-owned and that are immensely successful: Emirates, Air New Zealand and, in Africa, Ethiopian is government owned and is a very, very well run and profitable airline… It is unfortunately when you have guys that do not know where the boundaries are that you have issues. “… Protectionism is an issue. In a perfect world, we would have one airline and be everywhere we want to be – but then Asia is no different. Air Asia had to open six airlines to cover Asia effectively.” News Digest New multiple-entry visa to boost cruise business in the Gulf BY SARAH CORNWELL A MULTIPLE-ENTRY cruise visa for Gulf Cooperation Council member countries, under discussion for the past several years, is being prepared for implementation. The new policy, which took effect on August 1, will alleviate inconvenience and cost implications for tourists making multiple stops, whether by air, land or sea. The shift in policy will also make provision for medical tourists and their companions. Permits for cruise passengers will cost in the region of 200 dirhams. The present one-entry visa, involving extensive paperwork and extra fees, though considered an obstacle to tourism, has not diminished the growth in the number of cruise ships calling in the region. “This visa option will make it logistically easier and more cost effective for passengers on cruises to make multiple stops at the various ports of call on cruises in and around the UAE,” remarked Comair Travel Product Manager, Megan D’Arcy. “At this stage, details are still not clear regarding the visa application process, but we are sure these details will be sorted out soon and will encourage sales on upcoming Gulf cruise itineraries.” “Cruise tourism is an essential and growing part of the tourism economy in Dubai and also for other regional destinations in the Arabian Gulf. With Dubai being the only home port in the region for cruise tourism, we recognise the advantage of simplifying visa procedures and, where possible, in reducing costs for passengers, thereby further boosting the sector’s growth,” added Wendie White, Director of the Dubai Department of Tourism and Commerce Marketing for Southern Africa. “Visitors can now arrive at Dubai International Airport or Dubai World Cent ral, take a cruise from Mina Rashid out to other emirates and neighbouring countries and return to Dubai on the same visa,” added Executive Director, Hamad bin Mejren. Consultants from Club Travel visited Réunion on a recent educational. Pictured with supporting suppliers at the Pinton de la Fournaise volcano, (back, l to r): Glen Taylor, Island Light Holidays; Jeremia Brown, Gold Travel; Riaan Goosen, Club Travel Zoolake; Marijana Cizek, Sirius Travel; Lizette Basson, Air Austral; Taryn Brink, Flightsite; Deborah Magrath, Club Travel Product Department; Reason Mulaudzi, Travel Xcellence with (front): Azraa Gaffoor, Indaba Travel; Tatum Alexander, Club Travel Marketing; Suska Liebenberg, Just Holidays and Carla Nichols, Club Travel Edgemead. Briefly. H oliday Tours has a three-nights package for Atlantis, The Palm which includes flights, taxes, transfers, breakfast, plus a tourist visa for UAE. From R15,999 pps, valid until 26 September. SA visa-free travel expands marginally SOUTH Africa has moved up one spot in the 2014 global Henley & Partners Visa Restrictions Index, produced in partnership with the International Air Transport Association. The annual report ranks countries based on the freedom of travel enjoyed by their citizens. This year, South Africa was ranked 41 in the world, with the number of visa-free destinations open to South African citizens at 97, up three from its 2013 ranking. At the top of the rankings, Finland, Sweden and the UK have been joined by Germany and the US, with those countries free to travel visa-free to 174 destinations. T he bot tom fou r spots remained the same as in 2013: Pakistan; Somalia; Iraq and Afghanistan. The full report is available from henleyglobal.com. TIR Southern Africa • September 2014 9 Demand for cruises buoyant despite currency fluctuations BY LISA WITEPSKI F LUCT UAT IONS i n t he rand's rate of exchange have had little impact on cruise sales in this market, with a resulting sales growth this year. Cruise Vacations General Manager, Gaynor Neill, said although there had been a slight dip in volumes for the GSA’s budget product, at a luxury level, spending had remained constant. That pattern has also been reported by Cruises International. Ian Mathews, Sales and Marketing Manager for Triton Cape Sea Travel, confirmed little impact from the rand decline against the US dollar. However, he noted, products priced in pounds had proved less resilient. “T h is may be because people perceive the dollar exchange rate to be less onerous.” Austria Connection has also seen an increase in bookings this year, said owner, Inge Dobihal, with forward bookings for next year’s sailings already looking good. At MSC Cruises, Allan Foggitt, Director of Sales and Marketing, said, with product priced in rands, there was little gamble on currency and that this meant passengers felt comfortable planning their holidays. “ MSC’s lo ca l 2013/14 cr uise season grew by 30 percent and our international revenues have grown by 69 percent, which is testament to the value that a cruise holiday provides,” he said. Although Tracey K rog, Com mercial Manager atCruises International agreed “the combination of the devaluing of the rand, as well as the South African market straining under pressure had impacted on business”, believing there are opportunities in these challenging times. “Our cruise lines are continuously coming up with special pricing and value added offers, which actually make a cruise even more attractive.” Ms. Krog added that, in some cases, cruise lines were also now allowing children under age 12 to sail free, when sharing a stateroom with two full-paying parents, on select Europe and Caribbean sailings; others are offering onboard credit promotions on certain sailings, discounted deposits and extending option dates so clients face less financial risk. This optimism was fuelled by changes in distribution patterns, such as Imagine Holidays’ recent establishment of a concession store in Stuttafords. Press Off icer for MSC Cruises South Africa, Ingrid Roding-Tudor, echoed the benefits of strong retail partnerships: “Specialist cruise retailers are a huge benefit to us. “They are an indication of the appeal of cruising within the South African market.” Early booking still best Booking early is still the best way to ensure passengers receive favourable rates and a wide variety of rooms to choose from, specialists agree. Cruises International reports an average lead time of between eight and 12 months from booking to departure. This year, however, there seems to be a trend towards last minute bookings, remarked Ms. Krog, with many passengers booking only six months ahead of their departure date. She said this trend should be discouraged for several reasons: “Booking early is the best way to protect yourself against a volatile economy. Added to this, flights become cheaper when booked in advance, and it is also easier to book pre or post cruise accommodation. Not forgetting that it takes time to apply for visas.” MSC Cruises is another proponent of early bookings. Photo: MSC Cruises MSC Cruises has introduced a new rates and pricing structure for its 2015 European summer programme, with new fare categories providing a choice of accommodation and optional onboard experiences. Inside ‘Bella’ experience packages for one of MSC’s top-selling Northern European itineraries, visiting the Baltic Capitals and Norwegian Fjords, are currently available from R8,329 pp. Pictured (above) the MSC Opera cruises in Norway. “MSC’s standard launch discount is 40 percent but we operate a dynamic pricing policy where the discounts reduce as the cr uises f ill up, so on popular dates like weekends and school holidays this discount can reduce quite quickly,” said Mr. Foggitt. Additional discounts are offered to MSC Club members, senior citizens, single parents, honeymooners and, from time to time, Facebook fans and past passengers. “Late booking is certainly not an option for river cruises, because they offer such value and are so popular, there are rarely any last minute cruises because they are already fully booked. Nonetheless, an early booking discount of five percent is made for bookings and deposit payments received before the end of the year.” › See page 12 for more ways to save. Cruise lines ready to implement New management new immigration requirements for Cunard GSA PASSENGERS sailing from South African cruise ports from October 1 and planning to call at international ports are being urged to ensure they are compliant with new immigration requirements, to avoid being denied boarding. In addition to Home Affairs’ demand that families travelling with children provide unabridged birth certificates in addition to passports, due to become effective next month, one parent travelling with a child or children under the age of 18 years must 10 provide a letter of consent from the other parent in the form of an affidavit or custody agreement confirming permission to travel with the child/children. Death certificates will be required if the other parent is deceased. Guardians travelling with children must, in addition to unabridged birth certificates, provide a letter of consent/ affidavit from parents giving permission for travel. Travellers should also be warned that even certified copies may not be accepted. TIR Southern Africa • September 2014 MSC Cr u ise s Ge ne r al Manager, Merle Hambakis, said the message had been wel l c om mu n icat e d a nd expected most passengers would be aware of the pending changes, feeling there was sufficient time for lastminute applications. However, she expected there may be some difficulty in the event a minor’s guardian or absent parent could not be reached to obtain written approval. T he new requi rements only apply to itineraries with calls to any inter national port, Ms. Hambakis reiterated. “The only exception is for cr uises that do not leave South African waters, as in a cruise to nowhere, MSC’s Mossel Bay cruise and cruises from Durban to Cape Town and vice versa.” But Cruise Vacations General Manager, Gaynor Neill, cautioned the new immigration regulation has implications for foreign permanent residents living in South Africa, too, and who are required to carry their full permanent residence certificate, W H IT E St a r Cr uise a nd Travel, Cunard’s GSA, will have new management this month when Managing Director, Carol McCarthy, retires. The company will be run by Shaun McCarthy. He is the owner of Sun ’n Ski Holidays. “The transfer has been totally seamless, and having the same surname certainly helped avoid any customer confusion…,” Mr. McCarthy said. “This is just the right time to take White Star forward to meet new challenges and pursue new markets.” New contact details can be found online at www.whitestar.co.za. even though it stamped in their passports, she stressed. “Passengers need to realise that, like visa requirements, it is the passenger’s full responsibility to ensure they have the correct travel documentation. Full cancellation penalties apply and cannot be waived should they miss their cruise or have to cancel,” Ms. Neill warned. Been there, cruised that? Try Central America, say local cruise specialists BY RICHARD HOLMES “The future of the web is mobile,” said Leigh-Ann Proctor (pictured above) Cruises International e-Marketing Manager, launching the company’s new mobile-friendly versions of its consumer website and trade booking portal, www.cruises.co.za and www.shipmates.co.za. A mobi site has also been developed for the book.cruises. co.za booking engine. Features on the mobile version mirror the standard version of the site, and users are not required to download any app. See page 13 for more Sales Resources. Sell These: South & Central America Regent Seven Seas’ Seven Seas Mariner sails from Buenos Aires to Rio de Janeiro with two stops in Uruguay, an 11-night voyage, departing March 22, 2015. Regent’s fares are fully-inclusive – and this extends to a free one-night pre-cruise luxury hotel stay in concierge suites and higher. Fares from US$4,999 pp. Silversea Cruises calls at Colombia, Panama, Costa Rica, Guatemala and Mexico. The seven-day sailing on Silver Cloud departs from Fort Lauderdale. Carnival has an array of cruises to Central America, departing from Los Angeles and Miami. For families, the three- to four-day sailings to Mexico are especially popular, calling at Ensenada, Catalina Island and Cabo San Lucas. continued on page 12 LONG-HAUL cruise holidays are a big-seller in the local market but, for the avid cruiser, South and Central America provide a different experience – the warm weather of the Caribbean, the history of Europe and the flavours of Asia. Although the region from Panama to Guatemala and up into Mexico is still a niche destination for local travellers, it is growing in popularity with those who have been there, done that. Puntarenas in Costa Rica is in close proximity to the Arenal Volcano and the cloud forests at Villa Blanca, while at Puerto Limon the Tortuguero National Park offers animal encounters as well as a visit to the Braulio Carillo National Park’s aerial tramway. On the west coast of Guatemala, Puerto Quetzal allows for visit to the colonial city of Antigua, designated a UNESCO World Heritage Site. In Mexico, Cozumel, Costa Maya and Cabo San Lucas are popular stops for larger cruise ships. However, repeat cruisers may want to consider opting for a smaller ship that can venture off the beaten track. “The region is well served by major cruise lines; however Silversea is able to gain access to some of the lessvisited ports that bigger ships cannot enter. This gives clients a unique opportunity to experience destinations that aren’t crammed with visitors, and still have their historical integrity intact,” said Gaynor Neill, General Manager of Cruise Vacations. Highlights include “the cloud forests of Costa Rica, the primal Maya ruins of Guatemala, the marine wonderland of the Mexican Riviera, as well as the engineering feat of the 20thcentury; the Panama Canal transit”. “The Panama Canal would be the biggest highlight in Central America,” agreed Tracey Krog, Commercial Manager for Cruises International. “Most cruise lines offer voyages through the canal, whether it is part of a repositioning cruise or part of a Grand Voyage.” Silversea’s seven-day sailing on Silver Cloud from Fort Lauderdale calls at Key West, Belize City, Costa Maya and Cozumel before returning to Florida. “Traversing the 40-mile Panama Canal with Norwegian Cruise Line is the adventure of a lifetime,” agreed Ian Mathews, Sales and Marketing Manager for Triton Cape Sea Travel. “Add in compelling ports like Cartagena, Puerto Quetzel or Puntarenas… [it is] a memorable journey.” Along with the large companies, there is a handful of specialist operators such as Un-Cruise Adventures which offer theme departures with Birding, Kids in Nature, Marine Biology and Photography cruises planned for early 2015. For a taste of life under sail, Star Clippers offers sailings that visit ports in Panama, Costa Rica, Nicaragua, Cuba and Colombia on Star Flyer. “Most sailings are seven nights, but can vary between five and 14 nights,” said Ms. Neill. “Star Flyer’s comprehensive itineraries will ensure guests have access to both major and lesser-known national parks, of which many are remote islands and bays inaccessible to tourists visiting by land.” Fo r a g r a n d voy a ge through the Canal, Fred. Olsen Cruise Lines has a South America cruise in January 2015 for 69 nights from the United Kingdom via Rio de Janeiro, Ushuaia, Valparaiso and the Panama Canal. “This cr uise is popular too, but it is longer cruising,” added Mr. Matthews.. While the region is not as heavily-trafficked as the Caribbean or Mediterranean, the coastline “is very well served by most cruise lines, usually continued on page 12 Save by second guessing rand fluctuations with early payments How to get the best price – and bang – for your client’s buck without a rand price guarantee BY MELANY BENDIX IF there is one trend for the 2014/2015 cruise season, experts agree it is that the majority of clients are hell-bent on getting the best deal; and that is across all levels, from the budget barge to the blue chip cruise. And the best deal does not always equate to the lowest price, noted Tracey Krog, Cruises International Commercial Manager, “South Africans are looking for bang for their buck too”. That means it is not as straightforward as searching for the lowest price, as the best face value fare may not always be the best all-round deal. “Many cruise lines do not lower the cruise fare but offer value add-ons instead, such as onboard credit, free upgrades and free dining in speciality restaurants,” explained Ian Mathews, Sales and Marketing Manager for Triton Cape Sea Travel. Finding the best all-round deal can be tricky; it entails keeping an eye on exchange rates, fares and special offers, making judgment calls and knowing which direction to guide your client. Monitor the exchange rate With South Africa’s ailing rand and most cruise fares based on hard currencies, the exchange rate is a huge factor in cruise sales. Good timing of your client’s full payment could translate into signifi- cant cash savings. “Clients often do full payments when booking instead of deposits only if the rand is strong. The option to also do partial payments when the rate is good can save them money in the long run,” advised Gaynor Neill, Cruise Vacations General Manager. However, wait too long to pay in the hope that the rand will swing in your favour and your client risks landing up on the wrong side of the exchange rate, warned Paul Clarke, a partner in White Star Cruises. “It cannot be stressed too much or too often by the agent to the passenger: watch and allow for currency fluctuations, especially if there are long periods between de- Try Central America... continued from page 11 as a reposition cruise from the east to west coast, or vice versa,” said Ms. Krog, who added that the peak season is “at the beginning and end of the North American summer, May and September, and during the South American season, from December until the beginning of March.” “The east coast sailing out of Miami tends to be the port of choice to embark from, due to the cruises being long- er, all year round and offering more variety,” said Ms. Neill. It should be noted that the Caribbean coast can be affected by hurricanes from June to November, and cruise lines will divert to alternative ports if weather conditions dictate. “The costs to get to the United States are the first barrier to entry and will continue to limit the potential from South Africa,” said Al- lan Foggitt, Director of Sales a nd Ma rket i ng for MSC Cruises South Africa, whose MSC Divina sails out of Miami. “W hat we f i nd is that when a client chooses to go to the US they tend to pack in all the options into their holiday, including: Disney/ Orlando, car hire and Miami stopover and the cruise is an add-on to the holiday versus the primary reason to visit the States or Caribbean.” posit and final payment,” he said. “Unfortunately we have had passengers who, when confronted with the rate on the due date, literally cannot afford to settle and would rather lose their deposit than continue.” Encourage flexible departures If clients are not restricted to a set date of departure, they are likely to get a better deal, according to Mr. Clarke. “The ability to travel at will and at short notice can be extremely beneficial, as many lines offer incredible last minute rates, particularly at the beginning and end of the season.” “Always check the fares for similar departure dates, Briefly. S cenic Cruises has last-minute availability on several late season, fully inclusive river cruises, including a seven-night Highlights of the Rhine sailing, from Amsterdam to Zurich, departing October 13. Fares from US$2,295 pp. Other departures available in October and November, with fares from US$2,595 pps. C ruise Vacations has complimentary Havana pre-cruise stays for local passengers booking Star Flyer Cuba seven-night voyages, departing either December 7 or 14. as MSC has a dynamic pricing policy…so it is very possible that a cruise a week apart could have very different fares,” advised Ingrid Roding-Tudor, MSC Cruises’ Press Officer. Emma Momberg, Cruisemasters Marketing & Product Manager, said low season departures are where you will usually f ind the best deals. However, she noted that the offer is not always according to lowest price. “Sometimes the offer is a value-add, such as onboard credit. Remember that this can also contribute towards cost cutting as it reduces the client’s onboard expenditure.” Mr. Mathews also suggested agents check shoulder season fares for the better deals, but he pointed out that it can be a bit of a gamble because the lowest cruise fare at that time may not be all that low in rand terms if the exchange rate happens to be unfavourable at the time of sale. Sell These: South & Central America continued from page 11 Star Clippers sailings visit Panama (February and November), Costa Rica (November to January), Nicaragua (November to January) and Cuba (December to March) on the Star Flyer. Most sailings are seven nights, but can vary from five to 14 nights. A 14-night itinerary from Barbados to Panama takes in stops in Venezuela, Aruba, Colombia and the Panama Canal. Azamara Club Cruises includes late-night departures or overnight stays on more than half of all port visits allowing more time to explore. A 12-night Costa Rica ‘Coastto-Coast’ trip aboard Azamara Journey takes in Panama City, Caldera (Costa Rica), New Orleans and Miami. Crystal Cruises brings high seas luxury to Central America, with the Grand Panama Canal Transit one of the highlights: the 19-day adventure sails from Los Angeles to Miami, via Mexico, Costa Rica and Panama. Regent Seven Seas’ newest build, the 750-passenger Seven Seas Explorer, will enter service in 2016. Highlights of the new vessel’s design include a one-of-a-kind owner’s suite. Bookings for its inaugural season will open in early 2015. Crystal Cruises’ Crystal Serenity will visit Cape Town in 2015 as part of its world cruise. The ship departs Perth March 13, heading for Rio de Janeiro arriving April 3. Sectors of Silversea’s 2015 World Cruise are now open for booking. These include Mombasa to Cape Town in March 2015 and Cape Town to Fort Lauderdale in April. This month Amadeus River Cruises launches new sailings along the Mekong in Vietnam and Cambodia, as well as the Irrawaddy in Myanmar. They will be operated by the five-star boutique ships, Mekong Navigator and Irrawaddy Explorer. Optional land arrangements include visits to the Khmer temples at Ankor Wat; Ho Chi Minh City; Ha Noi with Ha Long Bay or Bangkok (Mekong sailings) and Yangon (Rangoon); Inle Lake or Bangkok (Irrawaddy). Crystal Cruises will operate a new 32-day expedition cruise through the Northwest Passage in 2016. First sailing departs August 16, 2016 from Anchorage/Seward, on the Crystal Serenity. 12 TIR Southern Africa • September 2014 Cruise lines ensure passenger experience when unexpected events affect itinerary WITH political unrest and unpredictable weather patterns a reality, cruise lines have learned how to put passengers’ safety first without compromising their cruise experience. “Like all industries, cruising is not exempt from misfortunes and contingency plans, but this is not something that happens often,” said Tracey Krog, Commercial Manager at Cruises International. “The cruise lines that we represent avoid cancellations at all costs, unless there is something wrong with the ship or if sailing could jeopardise the safety and security of the passengers. “Changes to the itinerary usually occur as a result of poor weather conditions. But, should there be a technical problem, the ship’s management team will work around the clock to ensure that guests are not inconvenienced,” Ms. Krog explained. Changes to the itinerary, she added, usually happen only as a last resort: “If the changes are made prior to sailing, with passengers informed well in advance.” Ms. Krog also noted that there were usually few complaints from guests, as early warning would provide time to adjust their plans if so desired. And, if a change is made whilst a customer is on board, they would be offered a contingency plan “difficult to reject”. Still, customers are urged to purchase insurance in the event they are forced to cancel their vacation for a reason falling outside a cruise line’s cancellation policy. “This could mean a future cruise certificate to the value of the cruise originally booked,” said Ms. Krog. If the client’s actions are covered by the cancellation penalty, they would likely receive a cruise certificate covering up to 75 percent of the cruise fare, depending on how close to the sailing the cancellation was made. If the client does not have cruise insurance, they will be liable for the penalties that apply. But terms may vary from one cruise line to another, with Ian Mathews of Triton Cape Sea Travel, commenting that cruise lines often act on a case-by-case basis. “We find that, if the cruise line handles the situation with care and points out that any changes made are for the passengers’ own safety, clients are understanding,” he said. When it comes to cancellations made by passengers themselves, travel agents are issued with a schedule for cancellation fees. “We encourage agents to up-sell insurance to cover cancellations. After all, passengers spend so much on their cruises that they should spend a little more ensuring they are protected against all eventualities,” said Mr. Mathews. Cruise Vacations’ policy is to ensure that passengers are aware of the company’s terms and conditions, which addresses how issues such as political unrest or acts of God would be dealt with, advised General Manager, Gaynor Neill. T he most com mon re - sponse would be a change in itinerary – and the cruise line reserves the right to do this, she said: “The terms and conditions make it clear that if a port has to be changed, no refund will be made.” However, in extreme cases, such as the volcanic ash cloud of 2012, a full refund may be made. “There are no set rules; we evaluate on a case by case basis,” Ms. Neill added. The circumstances may be slightly different for river cruising, according to Jolene Campbell, Brand Manager of Uniworld Boutique River Cruises. “Operations may be affected if water levels get too high or too low,” she remarked. “We also experience incidences where locks along the river are closed or being repaired. In the case of high or low water, the effect on the cruise is different in each case – for example, in 2013 there was flooding along the Danube River and cruises had to be cancelled.” However, Ms. Campbell said this was an extreme case and itineraries could easily be adjusted. “This means we may dock in a specific place for more than one night and skip another docking spot. When this happens, we use land transportation to transport our clients to the sights and planned excursions that are set in the itinerary,” she said. “If the company has to provide compensation, it usually gives a future cruise credit or in extreme cases, compensation in the form of cash settlement,” Ms. Campbell explained. And, if a client has to cancel their booking before departing South Africa, “they should be covered by our gold seal protection, which means they will receive a full refund. “If they do not have gold seal protection, they will be liable according to our cancellation policy,” she warned. At the Durban launch event of Uniworld’s 2015 brochure last month, Tracy Bucki from Pentravel Kloof won a cruise for two. Pictured above (l to r): Jolene Campbell, Brand Manager for Uniworld Boutique River Cruises with Ms. Bucki. the BY LISA WITEPSKI Sales Resource TIR rounds up the latest product sales, marketing and training resources for travel professionals. Regent Seven Seas releases new sales guide. Regent Seven Seas has released its Voyages to Explore December 2014 – December 2015 programme. Download the comprehensive sales guide from rssc.com. NCL launches new travel trade site. Norwegian Cruise Lines’ new web-based trade portal, Norwegian Central, can be used to manage bookings and provides access to research and promotional tools, dining options, onboard activities and details about transfer and hotel programmes. Agents in South Africa can access the NCL University online at www.nclu-intl.com. New subscribers should use Triton Cape Sea Travel as the wholesaler. To register to use the BookNCL function, send company name and manager’s contact details to [email protected]. Earn Shipmates Points with Cruises International. Cruises International’s travel trade booking engine has a number of useful sales features. In addition to booking functionality for lines including Royal Caribbean, Celebrity and Azamara Club Cruises, the portal allows users to search for pricing capabilities, itineraries, ship plans, specific categories of accommodation and stateroom information. Subscribers also earn Shipmates Points for online bookings. To register: book.cruises.co.za TIR Southern Africa • September 2014 13 Airlines adapt as high flyers trim spend Corporate travel policy squeeze forces business travellers to move back BY MELANY BENDIX CORPORATES are maintaining a tight grip on travel policies, forcing many business travellers to shift down a cabin, or two, from the very sharp end. Those who used to fly first class are now often f lying business, while former business class passengers have been downgraded to premium economy and the less fortunate have been bumped to the far right. “We have had a very torrid time in the corporate travel market over the past six to nine months,” confirmed Allan Lunz, BidTravel Managing Director. “Most corporates have cut spend by around 50 percent, so they are only travelling when it is absolutely necessary and even then they are cutting back on the number of people travelling, the length of the trip and, of course, the class of travel.” Mr. Lunz said many corporates had placed watertight restrictions on their travel policies to only allow economy or premium economy travel for all but their top executives – and even these high f lyers are now obliged to scout out the cheapest price. “We are under enormous pressure from our corporates to find the best available business class fares,” he said. Wally Gaynor, Club Travel Managing Director, agreed pressure to deliver the best premium class fares is immense. “It is not like the old days where money was no object for your top guys; their travel spend is also being closely watched,” he said. No end to corporate travel restrictions in sight The status quo is unlikely to change soon, despite a slightly rosier forecast for premium travel. T he I nt e r n at ion al A i r Tr a n s p or t A s s o ciat ion’s most recent Premium Traffic Monitor reported a small and slower climb in premium traffic for June, at 1.8 percent. However, premium yields had risen further to just under 29 percent in June. The association reported that “the rising trend in the 14 share of premium travel since late-2012 remains intact”, but cautioned the industry not to get too excited as uncertainty in global trade conditions “places some doubts over strong acceleration in trade and business-related demand in the near-term”. What this all means for the travel agent is that the majority of corporates are not going to relax strict travel from its fleet. The airline has been progressively downsizing its first class operations and will only offer it on its A380 f leet once it phases out its A330s and A340s in around two years. Mr. Al Baker said first class was no longer economically viable as few executives had flown in first since the 2008 financial crisis. “I don’t think that there will be “Most corporates have cut spend by around 50 percent, so they are only travelling when it is absolutely necessary and even then they are cutting back...” – Allan Lunz, BidTravel policies any time in the near future, so mid- and lowerlevel executives should make themselves comfortable in lower cabin classes. Business class cannibalises first With the exception of diehards such as Etihad and Emirates which are still battling head-to-head to raise the bar in luxury first-class air travel, airlines are responding to the shift in premium market demand by cannibalising first class seats with lie-f lat business class seats. Others are cutting out first class altogether. According to recent data from the American Centre for Aviation, this is a clear indication that long-haul first class air travel is definitely on the decline. As an example, the transatlantic New York JFK to London Heathrow route is the world’s most popular long-haul first class route, yet demand for the sharp end flagged enough for American Airlines to remove first class cabins entirely from its f leet of 777-200s operating the route. In Febr uar y, Air India confirmed it would remove first class seats from all international f lights. Brazil’s TAM Airlines followed suit in May, by conf ir ming it would replace first class with upgraded business class. The same month Qatar Airways Chief Executive, Akbar Al Baker, announced the airline would eliminate first class almost entirely TIR Southern Africa • September 2014 a return to first class travel,” he said. “The chunk of our premium occupation is business travel. There is very little leisure travel in the front cabin.” Market demands more premium economy Lufthansa, meanwhile, will remove around one-third of its first class cabins on longhaul aircraft later this year. The airline, along with others such as Singapore Airlines and Hawaiian Airlines, is instead beefing up premium economy class in line with international demand. This demand is reflected in the price sensitive South African market too, according to Michelle Kleu, Travelstart Country Manager for South Africa. “The majority of our clients are very price sensitive, therefore a marginal amount of clients book business or first class… Where we do see a very positive growth trend, however, is in premium economy.” SAA considers new premium product South African Airways is also expected to jump on the premium economy bandwagon. In July, Business Traveller quoted SAA’s UK and Ireland General Manager, Gary Kershaw, as saying the national carrier planned to introduce premium economy on its London/South Africa routes, first with retrofitted seating and then on new order aircraft joining the fleet in 2017 or 2018. SAA could not be reached to confirm this, but what is becoming increasingly clear Pay economy, fly business AIR Mauritius is filling up premium class seats on its South Africa/Mauritius routes by offering economyclass travellers the opportunity to experience the sharp end without breaking the bank. “Air Mauritius offers a Pay Economy Fly Business for a very competitive fare of R4,140 during basic periods, which allows people to travel in business class and experience our lie-flat product on our Airbus A340 or A330,” explained Carla Da Silva, Regional Manager Southern Africa and Latin America. “We also offer a last minute upgrade of R1,500 per person at the airport, subject to availability and only on our A340 wide-bodied operation.” is: if airlines don’t adapt to changing demands in the premium class market, they risk losing out. “The top cabins are now simply no-go’s for all but the very high f lyers,” said Mr. Lunz, “there is no going back.” Briefly. E tihad A ir ways recently introduced a luxur y chauf feur ser vice for all premium cl a s s p a s s e nge r s travelling to and from their accomm o d at i o n w i t h i n 100 kilometres of OR Tambo. Book 24 hours in advance. Who’s still flying business? BUSINESS travellers still take up the bulk of business class cabins in and out of South Africa, despite clampdowns on corporate travel policies. This is according to a number of airlines canvassed by TIR, which reported that business class loads were still good on South African routes. “On the Nairobi-Johannesburg route we offer 10 to 15 percent of our seat capacity in business class and these are well taken up regularly… Our business class passengers are mainly corporate travellers and government officials – of course the upper class leisure traveller also makes use of this cabin.” – Helena Maxwell, Kenya Airways Sales Manager South Africa “The percentage of business and leisure passengers travelling in premium class on the Mauritius/South Africa route differs depending on the month and period of the year. For example, over the Easter period and December period it is almost 95 percent leisure/holiday traffic. However, during the year business class is mainly for meetings and incentives and corporate travel.” – Carla Da Silva, Air Mau- ritius Regional Manager Southern Africa and Latin America “On Swiss, business class is mostly made up of corporate travellers, academics and European Leisure travellers.” – Andrea Carlyle, Swiss International Air Lines Brand Manager “Our configuration is 37 business and 254 economy. Most flights go out full… corporate travellers are the biggest proportion of business class.” – Margaret Copeland, Delta Air Lines Country Manager “The passenger mix is different from market to market. For example, Johannesburg has around 30 percent share of business travellers whereas Cape Town is leisure dominated with over 80 percent leisure travel. Oil and energy destinations such as Luanda cater almost exclusively for the business traveller.” – Karin Duncker, Lufthansa spokesperson “From South Africa there tends to be stronger demand for business class between Johannesburg and London than between Cape Town and London, as one would expect. Routes where there is typically high demand for Club World seats include our North American services and African routes such as Lagos and Johannesburg… We do, however, anticipate increased demand for Club World from Cape Town as we are the only airline offering a direct, year-round service to London.” – Shaun Pozyn, British Airways Marketing Manager Pictured right: SWISS International Air Lines' daily service to Zurich ranks among the best business class products to Europe. The 1-2-1 layout of the Airbus A340-300 gives every premium traveller direct aisle access. Window seats, in particular, offer plenty of privacy and a large workspace with in-seat power. Seats are stylish, with wood and leather trim, and extend to a fully flat two-metre bed. Expert Feedback Earn and burn: How to get the most out of airline loyalty programmes Evan Konwiser, New York-based travel business consultant and co-founder of airfare-prediction site FlightCaster: “Never ever fly without earning miles. Even if you are on a new low-cost carrier you have never flown before, you may as well sign-up. You never know when those miles may come in handy down the road if you fly with them again (or not). It’s just too easy not to. But, only belong to one programme per major alliance; this way you can consolidate miles. Since you can earn and redeem on any carrier within an alliance, there's no need to have points across programmes. However, it's always best to keep your points in the carrier you fly with the most. Then you can use those points for upgrades and some other perks that might only be available to members of that programme. Pick a ‘dominant’ programme to focus on. Usually that will be the programme of the airline you fly with the most… Sign up for all the alerts for this programme so you know when there are mile specials and bonus point opportunities. Also get a credit card of this programme so you can get miles when you make your first purchase, and use it for purchasing tickets on that airline. Go for top tier status. That is the goal of airline loyalty programmes, after all… Elite status gives you the ultimate travel experience. Even at the lowest tier, you generally get priority check-in, priority security, priority boarding, better seat selection, priority baggage, no baggage fees, a special phone number for better service, and – Courtesy Lifehacker.com more.” Nigel King, XL Travel Strategic Development Manager: “The secret is to know the benefits, because in addition to rebated or free flights there are a host of leisure, lifestyle and travelling benefits. Helping clients make the most out of their loyalty programme is how the travel agent can make a real difference. Offering loyalty card management as part of the value proposition will ensure frequent travellers get the best value from their miles earned. In return, agents can command a fee for this service along with associated booking fees every time there is a redemption transaction. Indicating to the corporate traveller when and how best to use the miles saved and an indication of the rand saving benefit which resulted can be a great service differentiator.” AIR CANADA: ALTITUDE Sign-up at aircanada.com. Depending on membership status, passengers are eligible for free upgrades, bonus miles and lounge access. AIR MAURITIUS: KESTRELFLYER Priority check-in and, for Kestrelflyer Gold cardholders, a 50 percent mile bonus earned on economy bookings. Members can now redeem miles for free upgrades. Members can earn and burn miles with Air France or KLM. It also has partner agreements with SIXT Car Hire and Indigo hotels. BRITISH AIRWAYS: EXECUTIVE CLUB Executive Club members accumulate tier points as they fly. Each successive tier provides more benefits. Silver and gold members have access to over 250 airline lounges. Other benefits include free seat selection from time of booking and additional baggage allowances. DELTA AIR LINES: SKYMILES There are four tiers, Silver Medallion, Gold Medallion, Platinum Medallion and, the 16 highest, Diamond Medallion. Miles never expire. From January 2015, members will be rewarded in accordance with the fare paid, not miles flown. EMIRATES: SKYWARDS Redemption opportunities are constantly being expanded and registration is now also possible through a new app for iPads. Emirates also recognises loyalty among its younger customers, with a frequent flyer programme dedicated to young travellers, called Skysurfers. Miles can be exchanged for free flights, toys, books and entry to attractions in Dubai. ETIHAD AIRWAYS: ETIHAD GUEST Etihad Guest is positioned as a loyalty programme, rather than a frequent flyer programme, as there are frequent flyers but also frequent ‘buyers’. In addition to its new chauffeur service for passengers travelling to or from Johannesburg (see page 14), members can also earn and redeem points with Marriott International. There are reciprocal benefits for SAA Voyager members flying with Etihad, and members also earn miles TIR Southern Africa • September 2014 Ed Frost, British Airways Commercial Manager Southern and East Africa: *While Mr. Frost’s advice is specific to BA’s Executive Club, he said the principles could also be applied to all loyalty programmes. “The secret is to maximise the earning opportunities through partners, actively manage your account, stay informed about exclusive offers, use miles to upgrade and plan ahead for redemption trips. New members can earn Avios for any flights they’ve taken over the preceding three months. You can also earn Avios miles from credit card, shopping, car rental, hotel and lifestyle partners. Actively manage your account online where, in addition to checking mileage balances, you can also make bookings, claim missing Avios and purchase top-up Avios. Stay informed. British Airways and its partners offer bonus benefits to members. These offers are publicised in Executive Club News, member emails and when you access your account. Understand the benefits. Executive Club membership enables you to collect Avios from any oneworld airline and credit card, car rental and shopping partners. When you fly you also accumulate tier points. These determine your level of membership — blue, bronze, silver or gold. Each successive tier provides more benefits.” Wally Gaynor, Club Travel Managing Director: “The big secret is to choose one programme and then try and stick to it, preferably a programme that is part of a worldwide alliance. If you live in South Africa, the only choice really is SAA’s Voyager (Star Alliance) or BA’s Executive Club (oneworld). The wild card is Emirates Skywards — it’s worth looking at if you find yourself flying with Emirates a lot. The beauty of Voyager and Executive Club is that you can transfer your Diners Club, Standard UCount or Amex points over to your frequent flyer scheme. Always remember to build up points, not just when you fly but when you shop, buy petrol and more. Use your points to upgrade, but remember airlines only upgrade from higher travel classes. So you have to weigh up whether it’s worth it to potentially pay a higher fare just to enable you to get that precious upgrade. And don’t be stupid: if there is a much better fare on an airline that is not on your programme, use the better option! Always put a rand value to your points to work out what the better deal is.” At a glance: new benefits for frequent flyers when flying with Air Seychelles and Etihad Regional. LUFTHANSA & SWISS: MILES & MORE Miles & More is the largest frequent flyer programme in Europe. It offers regular promotions, such as reduced mileage prices on new Lufthansa destinations. Frequent Traveller cards, Senator cards and HON Circle membership is awarded depending on the number of miles flown. Miles & Mores cards are then valid for three years. QANTAS AIRWAYS: QANTAS FREQUENT FLYER Members can earn and burn Qantas Points with over 35 affiliates. A new shopping hub, qantaspoints.co was recently added, currently only available to members based in Australia. SAA: SAA VOYAGER Members earn miles when they fly with SAA, other airline partners and non-air partners. A new partnership with Total South Africa will enable members to earn miles for fuel purchases made at 500 participating Total garages. UNITED: MILEAGE PLUS Instant upgrades and Economy Plus seating are among the benefits available to Premier and Blue members. Premier bonus award miles are earned on United Express, Copa Airlines and other partner airlines. Discounts and waivers on service charges and fees, vary according to membership status. VIRGIN: FLYING CLUB Members of Virgin’s frequent flyer programme progress from Red to Silver and then onto Gold status the more they fly. Members also generate Flying Club miles on bookings with hotel, car rental and Virgin Holidays bookings. There are discounts on packaged holidays and parking services at major UK airports. News Digest Tourism Minister tells SACCI delegates SA on track to reach meetings targets BY DOMINIC WARDALL THE Department of Tourism is eager to see South Africa’s status as an inter national meetings and global events destination improved owing to its direct benefits to the country’s economy but says the destination is on track to meet its sizeable 2020 growth targets. South Africa climbed to 34th position in the International Congress and Convention Associations’ global rankings in 2013, up from 37th place in 2012. Cape Town and Durban have also ranked high among the Top 100 cities for world conventions, the Tourism Ministry has revealed. The country is also ranked the number one convention destination in Africa and the Middle East. “All indications are that we are poised to continue to gain in this ranking,” added Tourism Minister Derek Hanekom at the opening of last month’s South African Chamber of Commerce & Industry Congress. T he 118 meetings recognised by the ICCA held in South Africa last year brought more than 94,000 association professionals to South Africa and contributed an estimated R1.2-billion to the economy, he reported. “If we add up the direct and indirect impacts of tourism in our country, an almost startlingly impressive story emerges,” Mr. Hanekom remarked. “9.5 percent of South Africa’s gross domestic product in 2013, translating into more than 1.4-million jobs. The SA National Conventions Bureau has set a target of growing South Africa’s business event industry by 57 percent by 2020. And, remarked Mr. Hanekom: “They seem to be well on track. “269 associations’ conferences and events are already confirmed between now and 2018. These events will bring no fewer than 310,000 professionals to South Africa ad will contribute more than R4.2-million to our economy.” He also highlighted the benef its a growing MICE m a r ke t i n Sout h A f r ic a would generate for business in the region. Briefly. A vis has launched shuttle services for Airlink passengers flying into the new Skukuza Airport and travelling on to the Skukuza main camp in the Kruger National Park. Reservations can be made via the airline’s website. L u Dowell Representations has added a new DMC to its portfolio, Argentina Travel Partners. The South American specialist organises MICE and special interest tours, as well as cruise and leisure programmes for travel to Uruguay and Argentina. Sun International retains stake in Africa, looks to new markets BY SARAH CORNWELL SU N I NTER NATIONA L plans to explore new opportunities in Latin America and Asia after offloading its majority stake in several resorts and hotels in Africa to the Minor International Public Company Limited, MINT. The value of the deal is estimated at more than R664million. The group will relinquish 80 percent of its shares in the Gaborone Sun in Botswana, the Kalahari Sands in Namibia and the Royal Swazi and Ezulwini Sun in Swaziland. Sun International will retain a greater, 50 percent stake in its two properties in Zambia, the Royal Livingstone and Zambezi Sun. The agreement does not extend to any of the company's South African operations, while Sun International Operations Executive: Africa, Richard Hawkins, stressed there would be no impact on existing sales agreements or forward bookings. It will continue to manage the casino operations at relevant properties, while MINT will assume day-to-day responsibility for managing the hotels. Given that Mint does not operate or manage casinos there is the basis for a natural partnership of natural skills and strategy, the company has said. “Effectively, this is an asset management exercise where we will then be able to focus on what we do best, which is run casinos,” Mr. Hawkins commented. “Minor already has a big footprint in Asia. They are also in the Gulf region and have moved into India. They are in Vietnam too, and then have a massive footprint in Thailand. If they expand that footprint, there will be an opportunity for Sun International to twin with their business on new ventures. “[Local] inbound operators will also get better business; so it is an add for us but also for the trade,” he said. The agreement is expected to take three months to conclude. Joining Beachcomber on one of its recent agent educationals to Mauritius (above, l to r): Gillian Suckerman, Travel League; Gerti du Plessis, Sure Ritz Travel Windhoek; Tanya Viljoen, Beachcomber Sales Executive and Joanne Visagie, Beachcomber National Sales & Marketing Manager, sample Shandrani’s attractions. Qantas and partners launch new Down Under package promotion QANTAS Holidays and Qantas Airways have launched a new booking promotion for the South African market, with packages for travel to Australia’s major cities, including return flights exJoha n nesbu rg to Syd ney and accommodation, from R8,380 pps. Airport taxes are not included but some packages also include arrival transfers and a city tour. The new promotion is valid for booking until the end of October. Travel must commence by March 31, 2015 and excludes December and January. Diary Registration for the African Business Travel Association’s upcoming conference, being held at the Sheraton in Pretoria from November 2 – 4, opens to the rest of the industry this month. For details: www.abta.co.za TIR Southern Africa • September 2014 17 News Digest IATA finalises first NDC module launch claiming it is vital to travel distribution BY DOMINIC WARDALL TH E I nter national Ai r Transport Association says it will launch the first set of New Distribution Capability end-to-end schemas after receiving final clearance of its Resolution 787 from US transport authorities last month. Resolution 787 is the foundation for the NDC, intended to improve how fares and airline ancillary product is displayed and compared on consumer and agent-only booking displays. The US Depar tment of Transpor t tentatively approved t he resolut ion i n May, dismissing concerns consumer privacy could be jeopardised. IATA said implementation would be voluntary but market adoption was an “exciting development for air travellers, airlines, intermediaries, and for competition. “…The next step is the release of the first comprehensive set of NDC end-to-end schemas, so the travel industry can start defining how best to take advantage of the new capability,” said IATA Director General and Chief Executive Officer, Tony Tyler. He reaffirmed that no passenger would be required to divulge personal information to receive an offer – a major sticking point raised by early opposition to the project. Although ai rli nes will be free to choose their own data exchange methodologies, IATA believes the development promises significant benefits from corporate travel account managers, “vital to the travel distribution chain”, as and when the schema are adopted by their technology partners. (‘Five Reasons Why NDC is Good for Corporate Travel Buyers’ – Yanik Hoyles, IATA) I ATA expects that because the N DC st andard would ultimately facilitate the provision of up-to-date airline product and service information, business travel- lers would no longer have to search for this information and make supplementary bookings on airline websites and third party systems. Cor porate managers would also have full visibility over the complete costs of one f light option versus another, while product attributed and ancillaries would be displayed in a structured way, IATA explained. It will also support the distribution of a participating airline’s entire offering, including any ancillaries, which would mean all flightrelated expenses would be pooled into the account manager’s system for more complete and effective reporting. Briefly. E mirates will launch a new daily flight to Budapest from October 27. Imagine plans more Stuttafords openings STUTTAFORDS and cruise and leisure holiday retailer Imagine plan to take their new store-within-a-store concept nationally. The first Imagine travel concession at Stuttafords Sandton was opened last month. The opening is the result of a new deal between the two partners to provide shoppers in-store access to travel planning and booking services. The concept of travel concession stores has already proven popular in the UK, said Imagine Chief Executive Officer, Robin Deller. “By launching this successful concept in South Africa, Imagine will be introducing its successful formula of unbeatable travel deals, exclusive product and quick turnaround in a chic, elegant environment in which shoppers are already comfortable.” Imagine is based in the UK and also runs a call centre business in Cape Town. Spotted at the 2014 AVIAREPS Airline Mini Fair in Cape Town… Pictured above (l to r): Dubai Department of Tourism and Commerce Marketing Account Manager, Bailey Gorst welcoming Lulu Levine of Lulu Levine Travel to the Emirates/ Dubai Tourism pavilion. South African Airways’ stand was a hive of activity as agents tried to outdo each other in a paper airplane challenge. Pictured above (l to r): Bettina Behrens, Mosaic Tours & Travel with Trevor Brown of SAA and Sylvia Marzagalli of Sylvia’s Travel. Members of EgyptAir’s management team were in Cape Town to promote new product and network developments. Pictured above: EgyptAir Regional General Manager, Ihab Seif with Club Travel ITC, Sandy Leslie of Personal Travel. Pictured above (l to r): Qantas representatives Michelle van Wyk and Khalo Mmalo lure agents Down Under with Aussie-themed props and product news from the airline. Pictured above (l to r): Nolene Ashfield and Charlotte Bezuidenhout from Delta welcome Nadima Omar of Travel Services Culture Tours to their stand. Pictured above (l to r): new to the Singapore Airlines sales team in the Western Cape, Lorette Garnett with Claudia de Avevedo and Shagufta Shariffi, Reservations. 18 TIR Southern Africa • September 2014 Personally Speaking by John Wardall Now I know where the sun don’t shine Y ou either like the terrain of the Karoo or you don’t. I do. I like the clear air, the wide open vistas, the mountains and the flora. So I thought I had better go and have a wander before it all gets fracked. En route, a couple of days in Plettenberg Bay sounded a good idea. Passing through Knysna, the now-correct informal settlement is bigger and more of an eyesore than ever. I have no idea why these settlements have to be right on major thoroughfares and in the most previously-scenic locations. I don’t have a lot of sympathy for the proximity to work-opportunity argument; I know plenty of people in London who commute two hours each way to work. Friends had been in Plett the week before and had enthused over the warm temperatures and swimming in the sea. No such luck pour moi. It was cold enough to freeze your buns off. However, a lucky find eased the aching joints. The Milkwood Manor Hotel was just what the doctor ordered. It is now called the Milkwood Manor-on-Sea, following the floods in 2010, which washed away Lookout Beach. The beach has returned, better than before, and the hotel, which was previously on the other side of a parking lot, is now on the sea and adjacent to the lagoon. A spacious corner room with a balcony overlooking the beach on two sides, free Wi-Fi, in-room tea and coffee, DStv, a welcoming staff, a free car wash every morning and its perfect location dare me to say it is probably the best value in Plett. It was a short stroll across the beach to the deck of the Lookout Restaurant for a pint of prawns and a Foresters for lunch, after the best morning coffee and pastries at Clare’s on Main Street. The sun emerged and the wellbeing encouraged a surreptitious toss of a couple of prawn heads to a waiting seagull, no doubt frowned on by fellow diners. Like everywhere else these days, Plett has a plague of car guards every 10 metres all over town and in every nook and cranny a car can fit into. I have no idea what service they are providing. I am capable of reversing my car without assistance and when I have returned to my car on two occasions at the local shopping mall to find a dent in it, the guards have somehow vanished into thin air. I had thought about a stay at the Plettenberg, which is very nice, but I will not stretch to the rates common to all of Liz McGrath’s hotels. I have just booked accommodation in New York for significantly less. It is a pleasant drive to Plett, except for the proliferation of the world’s worst drivers, who all seem to think that driving too fast and overtaking on solid white lines and blind corners is a sign of skill. I like speed but on the track; being a total ass does not appeal. However, many of the speed traps are absurd. They are clearly revenue generators more than safety measures. There is nothing safe about watching the speedometer more than the road as the indicated speed drops from 120 to 100 to 80 to 60 and finally to 40 in the space of half a kilometre. It is dangerous driving and unroadworthy vehicles which cause accidents and that obviously includes driving fast when it is dangerous to do so. Around 70 percent of road length in Germany has no speed limit and the accident rate every year is a tiny fraction of ours. I also don’t know anywhere else where it is legal to drive without at least third party insurance – forget the Road Accident Fund. But, as with so many things, we compromise standards for political reasons. Heading towards the Karoo, beyond Oudtshoorn, the R47 winds through Meiringspoort, cutting through the Outeniqua Mountains, with spectacular cliffs overhanging the road, crossing numerous rivers. The road, walls and bridges have been beautifully restored after floods early this year caused extensive damage and there are plenty of newly-thatched rest stops in picturesque locations. Most visitors drive over the Swartberg Pass towards the N2 but Meiringspoort has now become my favourite route, although the pass has fabulous views and a completely different perspective. Deep in the gorge, the road passes through De Rust, the prettiest little village I have seen in the Karoo. I was sorry not to have scheduled the time to spend a night there. The destination was Prince Albert which, despite enthusiastic recommendations from friends, I find, is an unremarkable little town, which has potential if only the community would use a bit of creativity, marketing and ambition to provide the kind of shops, restaurants and activities which appeal to visitors. Maybe they don’t want it to be anything more than it is or maybe I’m just too hard to please. The now-irate local burghers will no doubt let me know. A highlight was an early supper at the Lazy Lizard, rounded off by the best apple pie this side of the equator, drizzled with Gay’s finest local clotted cream, good enough to make the Pick ‘n Pay or Woolies variety weep. It seduced even me, the most dedicated non-dessert eater. As in Plett, the temperature made a mockery of the denial many South Africans have that there really is not a winter here. I have been unkindly advised to stick it where the sun don’t shine on more than one occasion but was never quite sure where that was. I have now been illuminated; it is Prince Albert in the depths of winter, exacerbated by the rental of a very nice but technologically challenged house in the middle of nowhere. My patience with the great green obsession is limited at the best of times – wind farms, solar stuff-ups and other assorted fads of sandal-wearing, tofu-eating loonies leave me cold. Literally last month, when the sun didn’t shine in PA and the lights went out in the solar underpowered manse, replaced by the dulcet tones of a clattering generator, which nearly shook the fillings out of my pearlies and left bags the size of rucksacks under my bright blues. Jocular comments about similarities to Madam’s snoring did not add to the warmth of the morning. Every time I take a driving holiday, I am reminded what a magnificent country this is; people cause problems, not the landscape. The beautiful Hex River Valley on the way back to Cape Town, ever-watchful for rocks tossed from the inevitable informal settlement at passing motorists – which they were doing again a couple of months ago – was a reminder of what we have been blessed with and what we must not squander. PS Dreams tend to be whimsical, happy or surreal. Or else they are nightmares. After watching Sky News recently, Gaza was obviously on my mind, resulting in a dream which was probably more farce. Zimbabwe was lobbing rockets into Pretoria, although most of them were falling short and blowing up crocodiles in the Limpopo. The Mad Mugger claimed reports were a plot by the gay British cabinet to discredit him; Amazing Grace flew to Milan to buy designer fatigues and army boots from Gucci; and the Zoomer got it mixed up and ordered an invasion of Lesotho by the arms deal submarines and frigates. I woke up feeling reassured that the Big Z still had his steady hand on the tiller of state, even though the rudder seems to have fallen off. PS I might take a little more notice of the critics of Israel’s Gaza policy if they displayed the same sort of concern over the actions of Islamic State which, in just one incident in Iraq, executed 80 innocent people for refusing to convert to Islam, makes a habit of beheading people it considers unbelievers, crucifies and buries women and children alive and is perpetrating genocide on the Yazidi population; or the conflict in Syria which has claimed the lives of around 200,000 people; or the carnage in the DRC; or the torture in Equatorial Guinea, etc., etc., etc. The mess in the Middle East, in particular, is due to the disastrous failure of misguided Western foreign policy. Meanwhile, it is obsessed with a futile and pointless confrontation with Russia over Ukraine. Our local demonstrators should take note that Shia Muslims would be the first target if the barbaric jihadists of IS came marching into South Africa. And they do not seem to have noticed that there has been little, if any, support for Hamas from other countries in the Middle East, other than Iran, who realise extremist groups ultimately pose as much of a threat to them. However, even though Hamas precipitated the violence in Gaza, continues to fire missiles indiscriminately into civilian areas of Israel and uses its own people as human shields, it is inexplicably winning the propaganda war in the West and creating an appalling round of anti-Semitism in a world which largely doesn’t understand the issues and is driven by a mainly left-leaning and naive media. PS I see that crashing bore Pallo Jordan, often described as the ANC’s leading intellectual – well, everything’s relative – loved to pontificate from his illusionary pulpit of academe and was foisted on the industry as Minister of Tourism in the late 90s, has been outed for faking his educational qualifications. What a surprise! At least he is sorry – sorry he got caught. With any luck, Business Day will stop running his yawn-inducing columns. They are even more tedious than mine, or so Madam tells me. TIR Southern Africa continued on page 20 • September 2014 19 News Digest ...the sun don’t shine continued from page 19 The horrifying incident of a Malaysia Airlines aircraft being shot down over Ukraine is an example of the inadvisability of civilian traffic overflying a conflict zone. While international outrage is understandable, the US, in particular, should remember that one of its guided missile cruisers mistakenly shot down an Iran Air A300 en route from Tehran to Dubai in 1988, resulting in the death of all 290 on board. A Soviet fighter shot down a Korean Air Lines jet in 1983 when it strayed into restricted airspace and was mistaken for a spy plane and, closer to home, two Air Rhodesia Viscounts were deliberately shot down by Joshua Nkomo’s Zipra in 1978 and 1979. The message is clear. PS In next month’s issue of TIR... We profile top-selling Indian Ocean beach breaks and round up the latest product news in the annual Forex & Insurance feature. Social engineering reached its peak of absurdity recently when I heard a government spokesman on the radio refer to people who were “previously Indian”. If there is an Indian, Japanese, Chinese or any other population group who thinks he or she is anything other than what they are, I would be pleased to hear of it. Personally, I would be pretty insulted if anyone tried to coerce me into denying my heritage in order to comply with the rewriting of history and I’m sure every previousIndian feels the same way. PS Off to NYC for the annual infusion of theatre, galleries, museums, restaurants and civilisation. If Islamic State doesn’t turn me into a kebab and the Big Z’s surrogates at immigration don’t send me packing when I fly back into Joburg, I shall report back next month. I’m outta here. Have a nice day! Tourism Ireland and CIE ran a series of Irish pub quiz workshops, hosted by Travel Vision, last month. Ireland is promoting its new Wild Atlantic Way route, which CIE incorporates into its tours. Pretoria’s quiz winners pictured (l to r): Adriaan Kruger and Sonia Kruger, 2 Life Travel with Leeann Naidoo, Tiffany Price and Hayley van Dyk, all Carlson Wagonlit Pretoria. South African Airways A330-200 Business Class LHR–JNB Flight Check BidTravel launches new online brand BY SARAH CORNWELL BIDTRAVEL has launched its first above-the-line consumer marketing campaign, promoting its new exclusively online-branded platform targeting leisure travellers, Webjet.co.za. Webjet is already an established brand in a number of overseas markets but is BidTravel’s first dedicated online product. The new site wast soft launched in April, with packaged holidays, hotel, flight, insurance and car rental in- ventory now available for booking. Managing Director, Allan Lunz, remarked: “It might have taken longer than we would have liked… [but] this is the big bang.” Mr. Lunz, said the number of users in the first weeks of operation had been encouraging. Online booking functionality will be backed by a call centre, he explained. “The objective is to make the brand top of mind among consumers… We have never really played in the consumer-facing space but, at this point in time, we definite- ly want to have a presence there.” With 80 percent of the travel population coming out of Gauteng, most of the brand’s early promotional activities would focus on that market, Mr. Lunz added. BidTr avel’s c or p or at e and leisure brands have all experienced strong online growth, according to Mr. Lunz, with corporate online booking platforms accounting for up to 20 percent of bookings. “The big issue is credibility but we are working with proven suppliers.” THE 11-hour flight was a comfortable one with the lie-flat seats and efficient onboard service, following a wait in the well-equipped Heathrow lounge. A generous three-course dinner, paired with a wide range of South African wines, was served with little delay to allow passengers maximum time for a movie or an early-to-bed. The touch-screen entertainment system was impressive, with a wide selection of movies and new 12” LCD screens. Arrival was slightly ahead of schedule, and luggage appeared promptly on the carousel. This service has few bells and whistles, but offered a solid premium class experience. With South African Airways gearing up for its move to London Heathrow’s new Terminal 2, passengers can look forward to even better lounge and airport facilities from October. 80_Seating 60_Attitude 90_On-time performance 75_Food 90_Aircraft 80_Onboard announcements 70_Service 85_Check-in Overall rating: 79/100