Franchising withTourvest Travel Services

Introduction

Franchising has long been recognised as a comparatively safe and affordable way for entrepreneurs to develop their own businesses. Since Steers first introduced the concept to South Africa in 1965, franchising has mushroomed across the country and throughout all imaginable industries. Travel and tourism is no exception.

Tourvest Travel Services (TTS) offers franchising and ITC opportunities for experienced travel agents who want to grow their businesses through an association with an industry powerhouse.

We are one of the foremost travel management companies in South Africa. As a member of Tourvest Holdings, we enjoy the backing of the country’s largest black- owned travel and tourism group. Following the acquisition of a 51% stake in the company by a BEE consortium led by Guma Tourism, Tourvest is now also one of the most empowered travel and tourism businesses.

Tourvest Travel Services is home to some of the industry’s best-loved brands, and our franchising model allows dual branding with American Express Travel Services South Africa, Seekers Travel or travel.co.za.

Franchising with Tourvest Travel Services brings independent travel agencies into the big league. As one of the largest players in the local market, Tourvest Travel Services commands a significant market share. Our franchising and ITC opportunities give you a slice of a much bigger pie.

Our franchising network extends across South Africa and includes more than 60 partners – ranging from large travel management companies to small, corner shop agencies.

The benefits of franchising with Tourvest Travel Services1. Flexibility: you can choose from four franchising and ITC options, as well as which one of the three Tourvest Travel Services brands you want to be associated with. Under the ICT option you can even choose to retain your own brand and simply use our systems and processes.

2. Independence: although we select like-minded partners, we do not dictate to our franchisees. You run your business as you please, as long as you follow the correct industry protocols. 3. Ongoing support: you have access to our management team’s knowledge and experience. This could include, for instance, assistance with grievance and disciplinary procedures, tax. compliance questions, and business management guidance.

4. Prompt payment: we pay our partners as soon as we receive payment from the travel providers.

5. Transparency: we explain our fees and your income in clear, unambiguous terms. You never have to wonder where the numbers come from.

Tourvest Travel Services franchising and ITC options

1. Brand-specific Franchising Model

This option is open to retail travel agencies with their own IATA numbers. The agency retains its own brand in a dual branding arrangement with the TTS brand it wants to be associated with, eg, Seekers Travel. The agency is linked to all the TTS overrides and negotiated deals and makes use of various Tourvest resources, such as training, marketing and advertising.

Initial fee: R20 000 (excl VAT), plus a branding package that depends on the franchisee’s requirements.The fee includes: - Use of the TTS brand, eg, Seekers Travel - Needs evaluation done by the TTS Training Department - Basic hardware needs evaluation and audit done by the TTS IT Department - Meeting to discuss branding guidelines - IATA linkage to overrides, net remits and supplier deals - Linkage and access to @ease product data base with company identity and terms and conditions - Development of a basic website with facilities to edit content - Linkage and access to the Fare Finder database - Linkage to the Tourvest Dashboard/Intranet and daily news bulletins - Marketing artwork and logos - Staff brief on processes and procedures - Marketing material

The monthly franchise fee depends on the model you choose:

Tourvest Travel Services franchising and ITC options cont.

Model 1 The franchisee requires an annual BSP in excess of R100 million. Monthly fee: R10000 (plus 20% of monthly fee of any sub-branches)

The fee includes:- Tourvest override deals, calculated as follows: o The franchisee receives 90% of the payment received by Tourvest on the franchisee’s deals if growth is achieved for all preferred partners. o The franchisee receives 60% of the payment received by Tourvest on the franchisee’s deals if growth is not achieved for all preferred partners. o The franchisee receives 90% of the GDS (Galileo/Amadeus) override payment received by Tourvest on the franchise’s deals, excluding costs. o Conditions apply. - Assistance, support and regular visits from the Tourvest Franchise team. - Assistance from the Tourvest management team. - Seekers franchises receive a bi-monthly branded newsletter for distribution to database. - A bi-monthly supply of Seekers branded travel inserts offering the latest specials. The inserts include the franchisee’s name and contact details. - Advertising and marketing support - Loaded onto Tourvest net remits and special deals. - Up-dated supplier figures. - Internal training. The co-ordination of outsourced training is supplied at negotiated rates. - Access to Worldwide Tours, our in-house tour operator. - Updated information via the TTS Dashboard/Intranet.

Tourvest Travel Services franchising and ITC options cont.

Model 2The franchisee requires an annual BSP of between R50 million and R100 million.Monthly fee: R7500 (plus 20% of monthly fee of any sub-branches).

The fee includes:- Tourvest override deals calculated as follows: o The franchisee receives 80% of the payment received by Tourvest on the franchisee’s deals if growth is achieved for all preferred partners. o The franchisee receives 50% of the payment received by Tourvest on the franchisee’s deals if growth is not achieved for all preferred partners. o The franchisee will receive 80% of the GDS (Galileo/Amadeus) override payment received by Tourvest on the franchisee’s deals, excluding costs. o Conditions apply. - Assistance, support and regular visits from the Tourvest Franchise team. - Assistance from the Tourvestmanagement team. - Seekers franchises receive a bi-monthly branded newsletter for distribution to database. - A bi-monthly supply of Seekers branded travel inserts offering the latest specials. The inserts include the franchisee’s name and contact details. - Advertising and marketing support - Loaded onto Tourvest net remits and special deals. - Up-dated supplier figures. - Internal training. The co-ordination of outsourced training is supplied at negotiated rates. - Access to Worldwide Tours, our in-house tour operator. - Updated information via the TTS Dashboard/Intranet.

Tourvest Travel Services franchising and ITC options cont.

Model 3The franchisee requires an annual BSP of between R25 million and R50 million.Monthly fee: R5000 (plus 20% of monthly fee of any sub-branches)

The fee includes:- Tourvest override deals calculated as follows: o The franchisee receives 80% of the payment received by Tourvest on the franchisee’s deals if growth is achieved for all preferred partners. o The franchisee receives 70% of the GDS (Galileo/Amadeus) override payment received by Tourvest on the franchisee’s deals, excluding costs. o Conditions apply.- Assistance, support and regular visits from the Tourvest Franchise team.- Assistance from the Tourvestmanagement team.- Seekers franchises receive a bi-monthly branded newsletter for distribution to database.- A bi-monthly supply of Seekers branded travel inserts offering the latest specials. The inserts include the franchisee’s name and contact details.- Advertising and marketing support- Loaded onto Tourvest net remits and special deals.- Up-dated supplier figures.- Internal training. The co-ordination of outsourced training is supplied at negotiated rates.- Access to Worldwide Tours, our in-house tour operator.- Updated information via the TTS Dashboard/Intranet.

The following optional extras are available and will be costed on a needs basis:a) MISb) IT supportc) Linkage to the Tourvest Quality Control Departmentd) Linkage to the online booking systems (AeTM)e) Linkage to the Tourvest Emergency Call Centre

Tourvest Travel Services franchising and ITC options cont.

2. Consortium Model

This option is open to retail travel agencies with their own IATA numbers. The agency retains its own brand and islinked to all TTS overrides and negotiated deals.

Initial fee:R5000 (excl VAT)The fee includes: - IATA linkage to overrides, net remits and supplier deals. - Linkage and access to @ease product data base with company identity and terms and conditions. Additional brands can get access at R1 500 (excl VAT)per brand. - Development of a basic website with facilities to edit content on the site. Websites for additional brands can be developed at R2500 per brand. - Linkage and access to the Tourvest negotiated fares and products. - Linkage to the Tourvest Dashboard/Intranet and daily news bulletins. - Staff brief on processes and procedures.

Monthly fee:R1500 (exclVAT)The fee includes: - Tourvest override deals calculated as follows: o The partner receives 80% of the payment received by Tourvest on the partner’s deals if the required growth is achieved for all preferred partners. o The partner receives 50% of the payment received by Tourvest on the partner’s deals if the required growth is not achieved for all preferred partners. o The partner will receive 80% of the GDS (Galileo/Amadeus) override payment received by Tourvest on the partner’s deals, excluding costs. o Conditions apply. - Assistance and support from the TourvestFranchising and management team. - Loaded onto Tourvest net remits and special deals. - Updated supplier figures. - Access to Worldwide Tours, our in-house tour operator.

The following optional extras are available and will be costed on a needs basis:1. Fares specialist support2. IT support3. Marketing and advertising support4. Branded newsletters5. Training

Tourvest Travel Services franchising and ITC options cont.

3. ITC Model

The ITC Model was designed for independent travel consultants. They continue to sell to their own client base,but using the TTS shared services and infrastructure enables them to sign their own cheques each month while retaining their own corporate identity.

Requirements to become an ITC partner:- At least five years’ travel industry experience, GDS certification, and fares and ticketing knowledge.- Own client base.- Minimumincome of R50000 per month (commissions, revenue and fees charged).- Company registration documents.

TTS offers an ITC partner:- 70% of all the commissions, revenue and fees charged on a monthly basis.- A 60% share of the best override deals in the industry when growth targets are achieved, and 40% share if targets are not achieved (annual payment).- Access to Amadeus/Galileo, AGM/Sam, Fare Finder, Dashboard, @ease, Internet and Speedfares.- Full back-office support.- Central Processing Unit.- Fares specialist support.- Access to Worldwide Travel Brokers.- Tourvest team support.

The following optional extras are available and will be costed on a needs basis:- Basic website at a once-off fee of R2500 (excl VAT)- Branded newsletters at R500 (excl VAT) per annum- Assistance with artwork and logos- Training- Stationery and office supplies- Messenger services - Basic MIS

Tourvest Travel Services franchising and ITC options cont.

4. Broking Model (Ticketing)

This option offers a ticketing facility to all non-IATA travel agencies. Initial fee:R2000 (excl VAT)

The fee includes:- Ticketing agreement to issue air tickets on behalf of the broking client.- Service Level Agreement.- Access to negotiate fares and products.- Access to Worldwide Tours, our in-house tour operator.- Additional commission at source from preferred operators, ie, Thompsons, Beachcomber.

Transaction fees (effective 01 February 2011):Issuing of international air ticket R110.00Issuing of domestic air ticket R 55.00Issuing of neighbouring country air ticket R 55.00E-ticket re-issues (domestic, international &neighbouring) R 55.00Air ticket refund R130.00Admin fee for ADM R200.00Issuing fee after hours R250.00

- All fees are per transaction or per person.- All fees exclude VAT (where applicable).- All transaction costs exclude any fees imposed by the airline or supplier.- These fees apply only when the broking client inserts all the ticketing info.- All standard airline commissions will be refunded to the broking client.

The following optional extras are available:- Linkage and access to the @ease product data base at a once-off fee of R2500 (excl VAT).- Development of a standard website with facilities to edit at a once-off fee of R2500 (excl VAT).- A sharing of overrides once the broker exceeds an annual BSP turnover of R5 million (primary preferred only).