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TRAVEL NEWS WEEKLY

SOuTHERN AFRICA’S TRAVEL NEWS WEEKLYJune 11 2014 I No. 2304IN

SID

E NEWSAIRLINES

New era of innovations on the way

NEWSGROW YOUR BUSINESS

Practical networking tips

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Chana bouCher

WHILE economists debate whether or not South Africa is

heading towards another recession, the drop in the country’s GDP is already impacting the travel industry.

Mike Schussler, director of Economists.co.za, says South Africa is most likely heading towards a recession. “Mining, manufacturing and durable

goods are all doing badly and I suspect that transport and tourism on the local side are also down slightly. Local tourists are under pressure and no longer going on holiday, or they’re going for shorter periods,” he says.

Jonathan Gerber, director of TAG, says mining is a massive part of the travel trade. “The strike and wage dispute will ultimately affect us all, not just the miners. I see a large

crisis on the horizon – travel, which is the ultimate luxury, has to suffer. The miners get a cold, the travel industry gets pneumonia,” he says.

Jonathan adds that, up until now, business has been better than last year but times are tough. “The interest rate cycle is also about to turn so I expect it to get much worse before it gets better. This is going to hit everyone as it is a large part of our GDP. I am not

at all confident about the trade and how it will cope with this expected downturn,” he says.

HWT Southern Africa md, Marco Cristofoli, agrees, saying global economic uncertainty and on-going recessionary risks, coupled with the negative profiling of South Africa internationally further compromised by labour and community unrest, weigh heavily as inhibitors to travel.

“The declining exchange

value of the rand will discourage many South Africans from travelling, and labour disputes, particularly in the mining sector, will continue to have a negative impact on the currency.

“We have seen a cutback on SME and leisure spend as consumers curb their spending habits and disposable income will remain tight for the foreseeable future.”

Brace yourself – tough times ahead!

What’s so funny? Marco Cristofoli (HWT), Robert Jasper (Southern Sun), Jose Cruz (Rennies Travel), and John Ridler (Holiday Tours), share a joke or two at last month’s TNW Thirsty’s, held at the Sunnyside Park Hotel in Johannesburg. For more pics, see page 8. Photo: Natasha Tippel

Thirsty men!

LUFTHANSA has opened bookings for its premium economy cabin. The product will be available on the Johannesburg route from April next year.

From December 10, premium economy class will be available on all flights served by the new B747, from January on the A340, and from April on the A380.

The destinations that can now be booked include the routes from Frankfurt to and from Buenos Aires, Chicago, Hong Kong, Mexico City, São Paulo, Seoul, Beijing and Washington, D.C.

From late January, the first retrofitted A340s are scheduled to take off from Munich for Hong Kong, Shanghai and Tokyo; from

late April the A380 is planned to then fly from Frankfurt to Johannesburg, New York, Miami, Houston, San Francisco, Shanghai and Singapore.

Premium economy fares on the A380 from Johannesburg to Frankfurt are R17 998 (including taxes). Bookings made before June 12 for travel between December and February 28, will be discounted up to €200 (R2 930).

The premium economy product offers pax 50% more leg-room than economy class and extra baggage allowance: two items weighing up to 23kg each.

For an extra €25 (R366), passengers can also enjoy the comfort of the LH business lounges before departure.

LH premium economy opens for sale

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FEaturE & HOmEWORKERS

ITCs – big revenue generatorsITCs

2 n Wednesday June 11 2014 QUICK READ FOR DECISION-MAKERS

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TRAVEL NEWS WEEKLY

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NEWS

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Dorine reinstein

THE travel industry can expect a wave of airline innovations after the

US Department of Transport tentatively approved Resolution 787, paving the way for the launch of the New Distribution Capability (NDC).

Jim Davidson, ceo of Farelogix, told TNW that until now there had been a black cloud hanging over the NDC. With the approval of the DOT, that cloud had been lifted. “Now we’ll see some action. We can expect airlines and distribution systems to get more serious about the NDC. We’ll start seeing some movement with airlines developing pilot programmes and appointing dedicated people to work on application programming interfaces (APIs) to the NDC standard.”

Chris Zweigenthal, ce of Aasa, agrees and says the approval of the DOT sets the platform to begin the process of rolling out the NDC globally, including in South Africa. “Airlines are constantly looking for ways to differentiate their product from their competitors. You will see new ideas coming out and being promoted to airline customers, especially if given a platform that would facilitate such initiatives.”

In a nutshell, Resolution 787 provides the framework for a technical standard for XML connections that would enable airlines to more effectively and creatively merchandise their products and ancillaries through

third parties. According to DOT,

Resolution 787 will “create modern, industry-wide technical standards and protocols for data transmission throughout the distribution chain, promoting efficiency, cost savings, and innovation through a real-time exchange of price and service information among carriers, travel agents, customers, and other parties, such as web-based aggregators”.

To get the ball rolling on the new initiatives, Iata has announced three new pilot

programmes to test the NDC schemes. Participants include Aeroflot, Aer Lingus, Qatar Airways, and JR Technologies. Iata dg and ceo, Tony Tyler, said at the recent Iata AGM: “The new pilots will support the development of the NDC standard to modernise the way airline products are presented through travel agents and help to promote efficiency, and innovation.”

Even though the NDC seems to be a groundbreaking product, some have argued that the three main global distribution systems have beaten the NDC to it. All three GDSs have introduced new ways of marketing ancillaries to travel

agents. A spokesperson for Travelport said: “We have been leading this effort through our Travelport Merchandising Platform utilising Universal API and XML connectivity options to airlines.” He says the Travelport Merchandising Platform was developed to allow airlines to distribute and differentiate all their fares and ancillaries via the travel agency channel, connecting to Travelport exactly how they choose to, while enabling travel agencies to fully compare the offers from those airlines.”

What sets the NDC apart, says Jim, is that it will offer a standardised solution, which will considerably enhance efficiencies for airlines as well as for GDSs. He says the current implementation of the sale of airline ancillary services in the GDSs isn’t easy and tends to be time consuming.

A contentious issue with the development of the NDC is the cost that will be incurred by parties involved. According to Jim, airlines will have to invest heavily if they want to be part of the NDC, as they will need to build designated APIs to the NDC standard. GDS companies will also have to make some investments in order to make the user interface compatible with the NDC. Last, but not least, travel agencies will need to invest, although their investment will be limited to the training of consultants to work with the NDC, says Jim.

THAILAND has lifted its curfew in major tourist destinations Pattaya, Ko Samui and Phuket, effective June 3.

The curfew for all other Thai destinations will remain between midnight and 04h00 daily.

In areas where the curfew has been lifted, tourist services and businesses have resumed their normal operating hours.

The Tourism Authority of Thailand has advised that in other popular tourist destinations that are still

under curfew, such as Hua Hin, Khao Lak (Phang-nga) and Krabi, all tourism-related businesses and services are operating normally, and that there is hardly any military presence in the major beach destinations.

HILTON Worldwide has announced the launch of a new boutique brand, Curio, for travellers who seek local discovery and authentic experiences.

Curio will be a global collection of distinctive four- and five-star hotels. “Each

Curio hotel will be different from the next, with individuality being a common thread, along with the quiet reassurance of the Hilton name behind every location,” the hotel group said in a statement.

Letters of intent have been signed for the following

properties: SLS Las Vegas Hotel & Casino; The Sam Houston Hotel in Houston, Texas; Hotel Alex Johnson, Rapid City, South Dakota; The Franklin Hotel, Chapel Hill, North Carolina and a soon-to-be-named hotel development in Portland, Oregon.

A new era of airline innovations on the cards

Thailand lifts curfew in tourist hubs

Hilton introduces new brand

Rubes® By Leigh Rubin

“Primitive?! Are you daft, man?! Why, this art couldn't possibly get any more contemporary!”

US simplifies entry procedures TNW pick of the week: I love my job! But not the pay Mango relaunches app, offers flights for R1 The parties and the pics – Asata Conference 2014 SAA talks fleet renewal EK offers 20% discount Brown in the hot seat as SAA strife continues KQ reintroduces Zanzibar flights

Top web stories

“You will see new ideas being promoted to airline customers, especially if given a platform that would

facilitate them.”

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NEWS

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Natasha tippel

ONE of the presentations at Asata Conference 2014

that delegates appreciated most was Helen Nicholson’s ‘Grow your network, grow your business’, which gave attendees practical tips and info on how to network and grow their personal brand.

“Your personal brand is your promise to your clients,” she said. “A promise of quality, consistency, competence and reliability, and this is based on behaviour. You need to understand how people currently perceive you and how you are falling short.”

This, she said, was called “perceived quality” and travel agents could influence the way people saw them by developing certain personal qualities: Be authentic and be

curious; curious people are genuinely interested in people. Remember people’s

names so you can introduce others to them and connect people. Operate with an

open palm – share, give generously of yourself. Don’t be a taker. The relationship doesn’t have to be 50/50 but people need to know it is mutually beneficial. Use LinkedIn, which

helps you connect with professionals and develop a network with people beyond those that you know. It’s about farming,

not hunting. According to studies, it takes six years to develop a good network because trust is key. People have to know you and like you before they trust you. Men and women

communicate differently. Women speak more, use

more words. Men say what they mean. Know your differences when networking. Women have a

wider circle of intimate connections but men have a much larger circle of business connections (between 50 and 70, whereas women on average have between 11 and 15). You don’t need to make new best friends. You can phone acquaintances and ask for help. United we stand.

Support one another. Men are more supportive of one another than women are. Practise your ‘elevator

speech’, one sentence that packages your value, which should be less than 10 seconds, briefly describes what you do and how this benefits your clients. “I’m..., I do..., so that...”

Helen is the ceo of The Networking Company.

How to network and grow your business

A NEW conference centre with 20 different venues that is able to accommodate 1 900 delegates is planned for Century City.

Along with a 125-room hotel, the Century City Conference Centre will form part of a R1bn mixed-use development in the Bridgeways precinct in Cape Town. It is scheduled for completion by the end of 2015, with the first conferences expected to be hosted by early 2016.

Greg Deans, director of the Rabie Property Group, says the development responds to the increasing demand for conferencing and hotels in the precinct.

The centre will feature three adjoining halls with capacity for more than 900 delegates cinema style and a fourth hall capable of hosting another 480 delegates cinema style.

The rooms will also be available for banqueting and exhibitions. A large pre-assembly area will cater for exhibitions and product launches. It will also feature 12 meeting and breakaway rooms and a business lounge. First-floor meeting rooms will accommodate at least 200 delegates in various seating arrangements.

“High-speed wireless services will be available in every room and all services can be customised to suit every event’s specific needs,” says Greg.

The mixed use development will comprise offices, showrooms, residential apartments and retail and a five-level parking garage with direct access to the CCCC. A multi-functional square will host restaurants and a number of other hospitality options.

Century City to develop mega conference centre

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Local is lekker! City Lodge Hotels has 52 hotels across all SA provinces. Here is the latest news in domestic tourism.

Sha’p-sha’p: (Sharp-sharp) (a) A South African term used to express

our good health and well being.

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CROC City ‘FlyOver’ has opened at Croc City Crocodile & Reptile Park on the Old Pretoria Road, Johannesburg.

“Guests will experience a bird’s-eye view of these large creatures as they glide over them up to eight metres above the ground. The Croc City FlyOver was built by industry professionals to

South African engineering standards – guaranteed to make your heart stop!” says Campbell Scott, co-owner of Chimp & Zee, the company that constructed the zip line.

The ‘FlyOver’ gives guests the opportunity to glide over three different crocodile enclosures that range in size from one metre to five metres. The

zip line consists of two cable sections with three sectional platforms with a total length of 150 metres.

The experience begins with a brief safety and orientation session that is led by highly trained guides to ensure that guests are aware of the risks.

Croc City is open seven days a week from 09h00 to 16h30.

Durban goes Miami-style

DURBAN is to undergo a complete facelift and transform its main

beaches into Miami-style tourist hubs in an attempt to uncover the city’s ‘wow’ factor, a spokesperson for the eThekwini Municipality has confirmed.

Sohana Singh, municipality spokesperson, remained tightlipped about the details of the city’s plans, saying: “The Municipality is still in the process of consolidating some of these plans. Once we have completed this exercise, we will definitely engage with the media.”

She did, however, confirm that information published in the The Mercury earlier this month was correct.

The newspaper mentioned the development of a giant theme and water park, a complete overhaul of the cruise terminal and the transformation of the beaches into Miami-style hubs. These developments will take place in phases, with the first phase to be completed by 2016 and the second by 2019.

Naledi Moyo-Ndwandwe, the deputy city manager for sustainable development and city enterprises, was quoted as saying: “The improvement to uShaka will blow you away… and we are looking at making the cruise ship terminal close to uShaka. The whole Point precinct will become a key theme- and

water-park attraction.”The promenade and

main beaches will also be restructured and will feature outdoor restaurants and music, while the beach will be divided into sections, like those in Miami and Rio. Naledi says the beaches will feature umbrellas and different sections, including one with hip hop music and dancing, a nail bar for manicures, and another with an ‘African/bazaar’ vibe.

Naledi said the city would also improve the swimming pool and transport at Moses Mabhida Stadium, and make the precinct more pedestrian-friendly. “It needs to be all about lifestyle and sport,” she said.

New Garden Route tourThe Cango Caves at Oudtshoorn.

Croc City ‘FlyOver’ opens in Johannesburg

SPRINGBOK Atlas Tours & Safaris has introduced a 10-day tour that visits key historic places and events in the life of Nelson Mandela.

The new Footsteps to Freedom tour begins with three days in Johannesburg, where guests will be taken to sites such as the Mandela house, the

Apartheid Museum and the Nelson Mandela Bridge and a two-night stay at the Black Rhino Game Lodge in the Pilanesberg National Park.

The tour ends with four nights in Cape Town, with visits to Table Mountain, Robben Island and townships of Langa and Khayelitsha. n

Springbok Atlas introduces ‘Footsteps to Freedom’ tour

TOURVEST Destination Management (TDM) has introduced a nine-day Garden Route tour in response to consumer and market demand.

The tour will include an extended visit to Oudtshoorn, game viewing at the Addo Elephant National Park, and visits to the Valley of Desolation and the coastal Garden Route. Guests also have

the option of spending additional nights in Cape Town.

“The new tour is a means show our dedication to offering variation in our guided tour options. We are also selling the lesser known areas such as the Karoo and, more specifically, the Graaff-Reinet region on a guided tour basis,” says Karien le Grand, TDM manager.

QUICK READ FOR bUSIESt pEOplE Wednesday June 11 2014 n 7

NEWS

Local is lekker! City Lodge Hotels has 52 hotels across all SA provinces. Here is the latest news in domestic tourism.

PillowTalkA brief look at this week's hotel news

Protea bookings now live on Marriott.com MARRIOTT International has announced that Protea’s portfolio of hotels is now available for booking on Marriott.com and through Marriott global reservations offices. Marriott recently completed the acquisition of Protea Hotels and its sub-brands, African Pride Hotels and Protea Hotel Fire & Ice!, transforming the group into the largest hotel operator on the African continent. The hotel group’s announcement marks the latest phase in the integration of Protea Hotels within the Marriott International portfolio of brands. Mobile check-in and check-out has also been expanded globally for Marriott Rewards members to nearly 500 hotels, by using the Marriott Mobile app on their smartphone. First introduced last year in the United States and Canada, the app is now available on every continent where Marriott’s nearly 500 properties are located.

City Lodge buys out Kenyan hotelsCITY Lodge Hotels Limited has completed acquisition of the remaining 50% of two Kenyan hotels. The group bought out its joint-venture partner, Fairview Hotel, and now has full ownership of Fairview Hotel Limited and the Country Lodge in Nairobi. City Lodge signed the joint venture in 2012, the hotel group’s first move out of South Africa, in a move to expand its African presence.

Michelle colMan

THROUGH the offices of the Regional Tourism Organisation of Southern

Africa (Retosa), 15 Southern African countries have rejected a proposed tourism tax mooted recently by the African Union (AU).

Their opposition backs that of the Secretary-General of UNWTO, Taleb Rifai, and Tony Tyler, Iata’s dg and ceo.

Simba Mandinyenya, Johannesburg-based acting executive director of Retosa, told TNW that tourism in Africa was already highly taxed and adding to the burden would be counter-productive to growth. Most Retosa member states imposed their own levies, which were set at levels to sustain their tourism development. “We believe these to be adequate support to the sector.” It was up to national governments to provide resources when additional expansion was

called for, he said. Press reports indicate that

the tax is not necessarily intended for tourism development on the continent but to fund the donor-reliant, cash-strapped union, which has had to forego some of its planned projects.

The tax, proposed at US$10 (R106) on air travel and US$2 (R21) on hotel stays, was first mooted at an AU finance ministers’ meeting earlier this year and immediately drew condemnation from a number of ministerial representatives, including South Africa.

It was again denounced by ministers of tourism attending the 56th Meeting of the UNWTO Commission for Africa in Angola last month. The Seychelles Minister of Tourism and Culture, Alain St Ange, was quoted in media reports stating: “We have all been involved in lobbying to have the United Kingdom scrap carbon tax for long-haul travel, which is a disincentive for

holiday traffic to Africa. And now we are seeing our own AU proposing just another tourism tax. It is hypocritical and it will hurt the tourism industry.’’

The World Travel and Tourism Council (WTTC) has echoed the disapproval. David Scowsill, president and ceo, commented: “Rather than taxing tourists, I would urge the African Union to focus on ridding itself of complicated visa processes, liberalising its skies, planning infrastructure for the long term and eliminating poaching. It is these measures, rather than taxation, that will ensure it gains a greater share of the global tourism market.”

The Kenyan press has also carried reports of objection by individual property owners as well as the Kenya Association of Hotelkeepers and Caterers.

It is understood the unpopular proposed tax is set to be tabled at an AU Heads of State meeting later this year.

AU tax proposal draws wide condemnation

THERE’S been a lot of hype around the opening of Heathrow’s T2 on June 4. It is expected to provide passengers with a new and improved travel experience, with quicker and more seamless connections.

SAA, a Star Alliance member, will make T2 its new home at the airport from October 22.

Spokesperson, Tlali Tlali, says the grouping together of Star Alliance airlines in one terminal will make it quicker and easier for passengers to catch connecting flights.

He says passengers will also benefit from increased innovation, comfort and higher levels of service. “Modern air travellers

expect a balance between technology and personal touch. Operating under one roof allows member carriers to share operational facilities more efficiently, and makes the best use of space and services,” he says.

Tlali says business travellers will find T2’s fast track routes through security and self-scanning of boarding cards particularly helpful.

They can also make use of free WiFi and smartphone technology to guide them to different parts of the terminal.

A new facility is a personal shopping lounge where passengers can browse, try, and purchase a specially curated selection of products from a private consultation

suite. John Lewis is opening its first-ever airport shop and Heathrow is also be welcoming Heston Blumenthal and his team with the opening of The Perfectionists’ Café, which will celebrate some of Britain’s favourite dishes, says Julia Gillam, head of PR communications for Heathrow.

Other well known eateries include London’s Pride by Fuller’s, the Caviar House Seafood Bar and The Gorgeous Kitchen.

T2 is easier to access than before, with rail, tube and bus connections accessed directly from the terminal’s central courtyard. Julia points out that Heathrow Express connects to Paddington station in 15 minutes, every 15 minutes.

Heathrow’s T2: bigger and better

hilka Birns

THIS year Germany celebrates the 25th anniversary of the fall of the Berlin Wall, the highlight of year-long celebrations being a light installation on November 9 – the night the wall fell – along the former border that separated the city and its inhabitants for 40 years.

Ralf Ostendorf, director market management of Visit Berlin, says many special events and exhibits to commemorate the historic event are planned in the city throughout the year. They include a film festival, a new standing exhibition, guided cycling tours along the Wall trail, visits to the former watchtowers and tours of former East Berlin in an

East German Trabant car. A full event calendar can be found on www.visitberlin.de

Visiting Cape Town during WTM Africa, Ralf said SA visitors to Berlin had declined slightly this year because of the rand/euro exchange rate, after growing 0,9% year-on-year in 2013 when almost 7 500 South Africans visited, contributing 23 019 overnight stays.

Berlin celebrates the fall of the Wall

Find your adventure...

TNW7114

In this month’s adventure column we travel to the snowy ends of the world and discuss options for clients that have been everywhere and seen just about everything.

Frontiers that very few have visited are the polar regions and Exodus offers cruises to both the Arctic and Antarctic regions in expedition style Russian ice-breaker ships. In addition to cobalt blue glaciers and spectacular views, these trips also offer incredible wildlife encounters. Excursions to remote islands and isolated sites are made by zodiac landing crafts. Sightings of penguins, seals, walruses, arctic foxes, prolific bird colonies, auk, whales and of course the mighty polar bear are possible.

Polar cruise ships are smaller than most cruise liners, accommodating approximately 100 passengers in total. Ships are kept cozy and warm inside and are a haven to return to after outdoor excursions when a hot shower and a sauna can be most appreciated. Expedition staff are highly knowledgeable and often include specialists such as penguinologists and polar bear experts. Special photographic departures also take place which are lead by award winning photographers.

Itineraries to the Arctic take place mostly during June, July and August where you can enjoy 23 hours of daylight to view the magnificent scenery. Destinations include the spectacular Spitsbergen Island known for its wildlife, Greenland where 70% of the island is covered in ice and the magnificent Fjord of Eternity. Selected trips journey all the way to the North Pole and autumn departures offer passengers the chance to see the Northern lights.

Itineraries to the Antarctic include the Falkland Islands and South Georgia Islands which are known as the Galapagos of the Poles. Ships also visit the South Shetland Islands, isolated volcanic islands where steam can be seen rising off the nearby ice and the Antarctic Peninsula. A number of optional activities can be booked such as sea kayaking excursions, mountaineering expeditions and ice-camping evenings in the Antarctic Peninsula.

For more information contact Travel Vision on 086 001 8020, at [email protected] or visit www.travelvision.co.za.

Dharmesh Kooverjee, Travel Vision’s CEO


1. Travel Counsellors group chairman, David Speakman (right) and md, Steve Byrne (left) were out in South Africa for the TC annual conference. They’re joined by Giles Hawke (MSC Cruises).

2. XL Travel’s Rod Rutter (left) and Lufthansa’s Axel Simon (right) mingle with Sunnyside Park Hotel’s host of the evening, Chris Schutte.

3. Catching up on business are Bronwyn Philipps (HRG Rennies Travel) and Allan Lunz (BidTravel).

4. Global Business Travel Association (GBTA) Southern Africa’s new director of operation, Jim Weighell, is pictured with Maro Kyprianides (Tour Destinations).

5. eTravel’s Garth Wolff (right) and Julia Page with Asata’s Otto de Vries.

6. From left: Tshepiso Malele (SATC) and Ernest Mohatle(Claudia’s Travel).

7. World Leisure Holidays’ Cathie Bester networks with 360° Travel’s Ramon Geldenhuys.

8. Tourvest Travel Service’s Andrew McDonic is spotted with the always smiling Mary Reynolds (SATC Reynolds Travel).

Photos: Debbie Badham and Natasha Tippel.

OUTDOORS the night was chilly but inside the Sunnyside Park

Hotel in Parktown the atmosphere was warm and welcoming as travel friends gathered to eat (from a wide

spread), drink and network at last month’s TNW Thirsty’s. This month, TNW Thirsty’s is heading to Durban. For more details on the event, email [email protected]. n


AS THE role of the travel agent changes with the continuous advent of

new technologies, one model – the independent travel consultant – is proving so successful that an increasing number of retail agencies are looking to incorporate it, or grow the model, in their businesses.

The Harvey World Travel Southern Africa business, says md, Marco Cristofoli, is set to expand its footprint with growth plans that include new affiliation models, including the ITC model. “While HWT SA already has ITCs that contribute strongly to Harvey’s revenue, we are in the process of further expanding and developing our commercial and value proposition model to ensure that the benefits are enticing and highly competitive in the market. We are seeking strong yet sustainable market share growth and the broadening of our ITC model is key to this strategy.” He adds that the full ITC model is expected to be rolled out on July 1.

According to Marco, ITCs are possibly the fastest growing revenue generator in a travel business. “It’s cost effective for both the TMC and the ITC and allows individuals to work for themselves with a solid support structure around them to assist their every need, thus allowing the ITC to focus on providing their customers superior service,” he says.

“It’s a no brainer, the ITC model is the way of the future,” says Tammy Hunt, eTravel’s operations director.

Jo Fraser, franchise

director for Club Travel, says consortiums are waking up to the reality that technology will make it easier for travel consultants to become independent, work from home, deal with their own clients and not be employed by a traditional agency.

“Clearly this is a very attractive model and many traditional agencies and consortiums have recognised the trend,” says Michelle Bullmore, Travel Counsellors’ marketing manager and head of recruitment.

Often the ITC model is a measure to retain senior consultants. Michelle says introducing an ITC model is often a defensive reaction to a situation where agencies

are haemorrhaging top senior staff and must protect their market share. Dinesh Naidoo, group operations director of Serendipity Travel, believes consortiums are incorporating ITCs to reduce loss of staff members to other business models.

Mike Gray, ceo of Uniglobe Travel SA, agrees that consortiums are responding

to a continuous loss of professionals in the industry but adds that it is also the result of travel management companies driving change to online and mobile solutions to meet customer expectations of more for less. “It is also being driven by supplier override deals,” he adds.

Over the last few years, says Tshepiso Malele, SATC’s marketing manager, the ITC business model has proved hugely appealing to travel entrepreneurs wishing to establish their own management operations. “By adopting the ITC model, barriers to entry are overcome.”

What it takesTo adequately support its ITCs, a travel company needs to have bulk buying power, access to the best fares in the market with 24-hour ticketing, help and support, says Jo. She adds that companies should also pay ITCs GDS and override income as well as extra commission at source, without touching any of the ITCs’ land commission or feed. Further, there should be ongoing training on all products and deals, and technology that makes an ITC’s life easier.

According to Dinesh, key to the success of an ITC is access to a dedicated team that is available 24/7 and to the best travel deals on offer. He says an ITC should “have the ability to be independent but belong to a bigger organisation that provides training and support”.

Mike says companies should provide the same

level of support to an ITC that they do to consultants fully employed by them, but at a lower cost. “People need to look at all the areas of value creation required to win and keep clients and then decide whether they can actually provide this for less on an ongoing basis.”

eTravel regards itself as a host company and Tammy says it prides itself on having the best back office of all ITC models. She says eTravel has 60 staff members offering admin support to the ITC business and catering for corporate ITCs, leisure ITCs as well as groups, conference and incentive ITCs.

Tourvest Travel Services, says chief sales and marketing officer, Claude Vankeirsbilck, has a thriving ITC business. “We base our success on the fact that our offering to ITCs is very flexible and determined by the specific needs of the ITC. We believe ITCs come in various forms and have tailored various value propositions to meet these needs.”

Claude says Tourvest’s ITC

business has grown year on year both in the number of ITCs and their sales volumes. “Their sales volume increase can be ascribed to the fact that they predominantly target medium to small businesses that look for individualised service needs and which have come back from doing their own travel bookings on the Internet and quickly realised the value of what a travel professional can deliver.”

According to Tshepiso, travel companies should have the ability to provide a 24-hour, seven-days-a-week ticketing operation as agents often have clients who may require last-minute bookings or changes. Well-established preferred supplier relationships are another prerequisite for the delivery of value to ITC members, he says. “In the case of SATC, we also offer business development support (including assistance with tenders) to all our members. This ensures that they are able to access additional skills they ordinarily might not have at their disposal.”

Traditional vs ITC “There is a fundamental difference in the transaction-traditional retail business model and the ITC,” says Michelle. She says some combination businesses say they offer both but the reality is that what they offer cannot compare to what a business focusing solely on the ITC provides. “Most companies running both models aren’t able to offer full support but rather just provide the minimum.”

ITCs – big revenue generators

Tammy Hunt

ITCs HOMEWORKERS

To page 10

Independent travel consultants are one of the fastest growing segments in the travel industry. Chana Boucher looks at the reasons for their popularity.

Tshepiso Malele


ITCs & Homeworkers

Big revenue generatorsFrom page 9

Do ITCs pose a big fraud risk?TRAVEL companies with independent travel consultants are at greater risk of internal fraud than traditional travel agencies, says fraud expert and director at Mazars Forensic Services, Christo Snyman.

This is because the companies have less control over how the consultants operate, he says, having investigated fraudulent activity ranging from card fraud and falsifying invoices to consultants using false authorisation codes to issue tickets.

Charmaine van Niekerk, hr and operations director of Club Travel, says she agrees to an extent. “Our business model is unlike that of most of our competitors in that the majority of our 247 ITCs do not carry our brand and they also only purchase their air bookings through us, so our internal risk only relates to this.” She adds that Club Travel processes are tight and always under review.

To manage internal fraud,

Charmaine says the first step is choosing ITCs you want to do business with. “Our criteria are strict as to their travel experience and they also go through stringent credit and background checks and sign personal surety.” Other measures Charmaine highlights include not issuing tickets unless valid payment reflects in the bank. Club Travel also obtains credit card

authorisations themselves. Further, credit cards go through an external fraud prevention system.

“In December 2011 we had a rogue branded franchise that defrauded a number of clients and suppliers. He actually owed Club Travel nothing, which is largely a testament to our internal processes but, that said, we tightened up on many potential areas as a result,” adds Charmaine.

However, eTravel and Travel Counsellors are wary of categorising all ITCs under the same umbrella and disagree that they are vulnerable to internal fraud.

Garth Wolff, ceo of eTravel, says at “face value” he agrees that ITCs are at risk because they do not have the same financial commitments to the likes of Iata in respect of bonding, as is the case with a traditional travel agent. “This in itself allows for a loophole in the system, which if not closed by the host company allows

for unscrupulous behaviour. There are many so-called ITC options out there that are either becoming the victims of fraud or soon will be, as they simply do not have the resources to manage this risk or are only chasing the volumes for overrides. It is these host companies that are allowing the ITC to become labelled with this fraud issue.”

In the early days of eTravel, Garth says the company was “taken for plenty” and had to write off more than R2 million. It has since introduced a Cleared Funds policy, which means the consultants don’t actually manage any cash. “eTravel collects the money directly from the client and ensures that these funds have cleared before releasing documents. We then pay the suppliers for and on behalf of over 180 ITCs, which simplifies the supplier’s life and reduces risk.”

Garth says other ITC options in the market bypass

this step, making them more vulnerable to fraudsters.

Mladen Lukic, gm of Travel Counsellors South Africa, says travel counsellors don’t engage in any part of the financial transaction. He says this model ensures that the risks are significantly reduced. Travel Counsellors also has a number of measures in place, including internal audits done on every booking on a daily basis, and has never had a case of fraud in South Africa. “There are people in the ITC space who don’t have these systems and of course they are exposed to fraud.”

Christo believes the travel industry is an easy target for fraudsters because of the lack of proper verification checks of new employees/ITCs, fraud awareness, card acceptance training, and effective control systems. He says a red flag for any travel company is an agent’s credit record. A consultant in debt is more likely to commit fraud.

Mladen Lukic

TRAVEL Counsellors believes technological advancements give its consultants a competitive edge as they are better equipped to offer a faster and more efficient service.

One of the most recently

introduced tools is the Travelport Mobile Agent, which can be installed on a travel counsellor’s smartphone and tablet. The product allows them to make a booking on the go so they no longer need to carry a laptop around.

Another tool is rapid re-price. Consultants no longer need to call participating airlines to get an updated quote when clients’ travel plans change. The tool allows them to get the new price, as well as change fees and additional taxes.

TC invests in new technology

Save the date!

Serendipity Worldwide Group, which has over 300 ITC members, will be holding its annual conference this year

from August 8-9. Dinesh Naidoo says members and partners can look forward to a “serendipitous weekend”.

The venue for the conference is the Champagne Sports Resort in the Drakensberg.

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[email protected] www.satravelcentre.com 011 616 7956

Are you a TMC or ITC who wants to be part of a world-class consortium that supports and grows your business through a wealth of benefits?

LET US TAKE YOUR BUSINESS FURTHER

At SATC we’ll negotiate the best deals available on your behalf, whilst you enjoy one of the most favourable incentive pay-out structures. If you want the assistance of a travel consortium that is going places, call South African Travel Centre now, and let us tell you how we can help your business take off.

Taking you further. Bringing you closer.

Tammy agrees, saying that a company that does both cannot be regarded as a specialist. “You can’t be a doctor and a dentist and be successful at both. We regard ourselves as the true ITC specialists in SA.”

However, Dinesh believes the combination model has an advantage over companies that focus solely on ITCs. “The new ITCs that are emerging still require that traditional support in order to maximise their

business. Also they do not take a huge percentage of the hard-earned commission of the ITC.”

Jo says it’s important to understand the industry and know from daily experience what the ITCs face and need. “Being actively involved in retail gives you this invaluable experience. Specialist ITC companies tend to sit in their ivory towers dictating to their members without knowing what’s happening on the ground.”

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The benefits of being an ITC…MANY travel agents looking for flexibility and more control over their earnings are going the ITC route.

eTravel’s Tammy Hunt says money, autonomy and flexibility are behind agents choosing the ITC route. “Being empowered to run your own business makes you more passionate.”

Michelle Bullmore says consultants’ reasons for wanting to become an ITC vary but one of the most common is to get the reward and recognition for their efforts and the opportunity to earn more.

In a traditional agency, Michelle says agents are getting higher and higher targets set for them, their working hours are getting extended (including Sundays) and they aren’t able to give the client the best service possible since they need to get the client in and out as quickly as possible. She adds that many agents don’t like that they have to sell preferred partners that could be in conflict with what the client is actually looking for.

Another common driver, says Michelle, is striving for the perfect work/life balance where they can offer their clients the very best service but at the same time be there for their families, whether that means helping with homework, doing the school run or watching sports events.

She says some agents have reached a ceiling in their companies and can’t go any further. Some have relocated and found that the salaries in their new area are lower than

they earned before and others are tired of the long hours, traffic and the office politics. She adds that some owner managers have decided to go the ITC model so that they can follow their own passion (selling travel and not getting bogged down by the admin and staff issues).

Dinesh Naidoo believes the ability to work flexitime without the pressure of BSP deadlines makes the ITC model very attractive to consultants.

According to Mike Gray, consultants believe they provide everything the client needs and generate all the revenue, without any need for back up and support services. “They therefore believe they can create a lower cost alternative for clients and use this to improve their financial positions.”

Abigail Pires, group solutions manager, Sure Travel, says if an ITC has an existing client base and wants the flexibility of their own hours and working conditions, the ITC model can be of great appeal to them. “However, it is very

important for these agents to still be linked to a reputable group such as Sure to ensure they still keep updated with industry information and training. Likewise it’s very important to be linked to a reputable agency for ticketing and back office.”

“In this day and age people want flexibility, whereby they are in control of their own businesses and write their own pay cheque,” says Marco Cristofoli. He adds that an ITC model in the travel sector suits these requirements perfectly.

“Remember this is an industry that thrives on relationships and customers follow people not companies.”

Tshepiso Malele says the ITCs who are part of SATC are generally senior consultants with extensive experience in the travel business. “Having worked for larger agencies for a long time, they then aspire to owning their own businesses. Starting up as an ITC naturally becomes a feasible way for senior consultants or managers to achieve this goal.”

Jo Fraser says: “If you are good at what you do and have a local client base you can earn a lot of money and have a better quality of life working for yourself.”

How to chooseWith the growing number

of companies offering ITC opportunities, how does an aspiring ITC choose?

“Firstly, each prospective ITC must decide on the business model they want to build,” advises Michelle.

ITCs & Homeworkers

Mike Gray

To page 14Marco Cristofoli

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She says some of the things to consider include whether there is a global community, the support offered, technology, equipment, costs, deals, marketing, business development, training, brand image, earning potential, supplier deals and financial protection plans. “For all these points they need to look at the costs. Does the host provide it or does the host simply assist?” says Michelle.

Jo advises consultants not to sign an agreement that ties them up for years.

She also says consultants shouldn’t choose a company that will take 30% or 40% of their entire income and should opt for flexibility, such as choice of doing their accounts or not, or choice to be branded or not.

“One shoe does not fit all so one has to be flexible and

understand the ITC’s needs.”Dinesh believes key points

are free accessibility to a GDS, getting paid commission upfront and having access to rates and deals that are on a par with or better than what’s available in the market.

Factors to consider, according to Tammy, include how long the host company has been in business, the size of its annual income, its back-up admin support and after-hours emergency contact. Tammy says agents should speak to existing ITCs at the company as well as its suppliers before making a decision.

Mike says consultants need to consider whether the model is sustainable in the long run. “Being lured in on the basis that everything is free and there are no contracts is unsustainable and probably not something one should bet your livelihood on.”

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A COMMON misperception is that most ITCs work from home. “Although most of our travel counsellors do work from home, we have a number of very successful ones who work from office premises,” says Michelle Bullmore.

She adds however, that there are many benefits to working from home. “Firstly there are no office rentals so it keeps your costs low. You don’t get any office walk-ins, often known in shopping centres as the time wasters. About 80-90% of every booking turns into a sale. There is no security risk… a bricks and mortar shop can be a target for robbery.” She says there are tax benefits to

working from home and no time wasted in traffic.

Serendipity Travel, says Dinesh Naidoo, gives ITCs the choice. “Both models are working fine. It is up to the individual as to whether he prefers to work from home or

an office. We have seen huge results when an individual is given a choice rather than being dictated to.”

eTravel offers its ITCs space at its Johannesburg and Cape Town offices. Tammy Hunt says the financial requirements for those at eTravel’s offices and those who work from home are exactly the same. “It just allows those ITCs who want to work from a professional office environment to operate within our premises.” She says around 10% of eTravel’s ITCs are based at their offices. “The majority source their own option for office space, be it at home, their corporate offices or their own leisure shops.”

Myth: ITCs only work from home

ITCs & HomeworkersThe benefits of being an ITC…From page 12

Did you know?

Club Travel has reached in excess of 300 ITC and partner agencies. It has also won the World Travel Award for Africa’s Leading Travel Agency seven times in a row.

eTravel to launch ticket-only producteTRAVEL will be launching a new division later this year called Just A Ticket.

While eTravel did not want to give too many details away, Tammy Hunt

explained that with Just A Ticket there will be “no contract, no deposit, no admin, which includes no invoice – therefore nothing else

other than a ticket”. She said agents would

simply use eTravel’s tool to book a ticket and would enjoy the full support other ITCs have.

Dinesh Naidoo


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

Appointment

Top jobs in Cape Town this week:

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Admin Supervisor South. Join well recognized luxury T/O & provide support to busy office with your vast knowl of Southern Africa. Sal R15 000 + benefits.

FIT Team Leader North. Assume responsibility in this exciting role with expanding int’l T/O. South & East Africa knowl ess! Sal R16 000 + benefits.

French FIT Specialist CBD. Team up with a leading luxury T/O & create magical adventures for 5 *clientele. Sal R15 000 + comm.

Sales Executive- BEE CBD. Corporate hunter req for national TMC. Grow this exciting brand with the help of a winning team. Sal R25 000.

Call Malika / Morne: 021 418 1084, [email protected]

Pick of the week

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

brought to you by

TNW

7119

PR, Marketing Assistant - JnbDevelopment PromotionsCandidate responsible for managing all aspects of public relations function for Development Promotions, as well as assisting the marketing manager of Tourism Ireland and co-ordinating events. Email: [email protected]

Operations Manager - JNBQuantex Recruitment GroupRNeg. Experience in managing 40+ consultants and ensure smooth running of corporate travel operations. Email: [email protected]

Intermediate - Senior FIT Consultant - CPT (Hout Bay) Professional Career ServicesTravel diploma. Tourplan. 3+ yrs exp with inbound travel. Knowledge of Southern Africa. Attention to detail/work well under pressure. R12000 neg. Email: [email protected]

Key Accounts Manager – DurbanLee Botti & AssociatesWestville. Call on corporates to increase business for key national retail agent with enviable accounts. Proven sales record essential. Email: [email protected]

Travel Expert - PretoriaFlight Centre 2 year’s sales/customer service, Matric or relevant degree/diploma, SA citizen, international travel experience. Basic, lucrative commission structure, medical aid and provident fund. Email: [email protected]

Top Senior Consultant - SandtonInfusion ConsultingComplex travel consulting (excellent AFRICA knowledge). 6-8 years as a senior. GDS: Amadeus/ Galileo. Salary neg. Email: [email protected]

New Business Development – CptTourvest Travel ServicesCalling all sales professionals. Positive attitude, tenacity, driven to perform, self-motivated, fantastic sales record, MS Office and business writing skills. Interview in Cpt, 18 June only. Email: [email protected]

Creditors Clerk - BellvilleQuantex Recruitment GroupR15000. Join corporate office and manage large volumes of creditors and supplier relations. Email: [email protected]

Tour Manager – JNB NorthProfessional Career ServicesIn charge of German market for incoming operator. Handle all correspondence with German operators. German speaking. Sell & organize tours in SA, Namibia and Zimbabwe. Email: [email protected]

Sales Executive - West RandLee Botti & AssociatesLove the thrill of closing that corporate sales deal? Fast paced, national agent! Salary negotiable + lucrative commission. Email: [email protected] Business Development Managers - JnbFlight Corporate TravellerWe are looking for business development managers to grow our new business in Johannesburg. Corporate sales experience essential. Email: [email protected]

National Conference/Event Manager - PretoriaInfusion ConsultingSenior role: overall management of staff, conferences and events - nationally/government/corporate clients. Able to travel. Galileo, 5-10 years of exp. Salary neg. Email: [email protected]

Intermediate Inhouse Consultant - Sandton - RetailWendy’s Travel Personnel Handle domestic, regional, international bookings and enjoy the benefits of working for major travel concern! Galileo/BSP/refunds experience essential. Email: [email protected]

Travel Advisor – NationallyPentravelLooking for outstanding people who are highly motivated and driven with a focus on deliveringexceptional customer service. Benefit from great financial rewards. Email: [email protected]

TAG has appointed Gavin Stevens as Cape Town md. He will be investigating how TAG can grow its business into areas such as groups and incentives and leisure, grow its online presence and drive current corporate business. He will also explore new business opportunities and potential acquisitions within the travel industry space in Cape Town.

SAA has appointed Ray Nkwe (right) regional general manager for South Africa, effective May 15.

“Our domestic market in SA continues to be our single most important market and, as such, we look forward to Ray’s contribution in driving and delivering our commercial

strategy for the domestic market,” says Kendy Phohleli, acting gm of commercial.

Over the past 18 years, Ray has worked in organisations, including SA Tourism (gm of strategy), SA Express (commercial director), as well as Tiger Brands, Pioneer Foods, and the SABC.

New SAA gm regional

Home in the Mother CIty Tourvest Travel Services (TTS) recently celebrated the opening of its new Cape Town offices with a ‘hard hat’ roof wetting. At the event, Morné du Preez, TTS ceo, explained that all the Tourvest offices around the country would feature a similar look and feel. He said the office provided a comfortable environment for staff to work in while maximising the space available and added that suppliers visiting the office should feel at ease in the new environment. Pictured here in their construction gear are Lidia Folli, TTS cfo, and Morné. Photo: Chana Boucher

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Sales Executive Gauteng•Minimum4yearsairlineexperience

•CorporateSalesknowledgeanadvantage

•Responsiblefortravelagentandcorporateclients

•Increasecorporateclientbase

•MustbeChinesespeaking/written

Shouldyoubeinterestedintheaboveposition,[email protected].

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TNW NEWS

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Claude Vankeirsbilck, Tourvest Travel Services’ chief sales and marketing officer, agrees: “We are faced with massive cost containment measures from most of our corporate customers.” He says most companies have already started cutting down on their travel budgets due to the current pressures and that this will continue.

He says it is surprising that some travel companies are claiming that 2014 has been one of the best years thus far. “This is not the case when I speak to suppliers and certainly BSP is not showing this trend.”

Andrew Stark, gm of Flight Centre, believes people will still travel but will downgrade from first to business and from business to premium economy. He says people will also shorten their stays. “Instead of ten nights, they will opt to spend seven or five nights away. Local holidays will also become more popular.”

It’s not all doom and

gloom, says Dinesh Naidoo, group operations director of Serendipity Worldwide Group. “We have experienced a great start to 2014 and we predict that there will be growth in travel this year. We are aware of the dip in BSP figures in April and May but this is normal for the leisure market.”

eTravel, says ceo, Garth Wolff, has managed to show growth, but single-figure growth. While he expects conditions to remain tough for a while he is optimistic there will be an upturn as those who are making profits now should be making a lot more in a year or so. “Corporate SA has over R500bn lying in bank accounts just waiting to spend within the economy once business sentiment improves. The cycle should improve soon, which we will first see in an increase in the leisure sector of travel as disposable income improves. This will then filter into corporate travel.”

Andrew says as long as agents stay competitive and market what customers

want, 2014 will continue to be a “very good year from a corporate and retail perspective”. “The key is having a mix of business sectors so that when a strike in the mining sector hits, it doesn’t hit your business too much. Service and added value are key components in times like this to keep customers.”

Vanya Lessing, ceo of Sure Travel, says leisure travel is faring much better than corporate. “Every sale will count as no one can afford to lose a sale due to a lack of skill. Economies go up and down but astute business people always manage this and find new opportunities, no matter what the odds.”

Dawie Roodt, director and chief economist of the Efficient Group, says while a recession would not have as much impact as it did in 2009, it will probably be more prolonged. He adds that job losses are less likely as companies have already restructured after the financial crisis.

The Holiday Factory is offering specials to Thailand and Bali at Centara Hotels & Resorts, starting from R11 420. The offer includes seven nights at various resorts, ranging from three- to five-star hotels, seven or ten nights’ accommodation, flights (including airport taxes), return airport transfers, and breakfast daily. Specials are valid until June 30. See Travelinfo for more info. The Holiday Factory’s sales director, Matthew Fubbs, puts on his island style. Photo: Shannon Van Zyl

A lovely bunch of coconuts

From page 1

Dorine reinstein

KENYA Airways will be deploying its new B787-800 Dreamliner on the

Nairobi-Johannesburg route from July. The new aircraft is expected to considerably boost capacity on the route.

Rosemary Adogo, KQ area manager for Southern Africa, says: “The new B787-800 boasts a capacity of 234 passengers, which is a substantial increase when compared with the B737-700 currently in use on this route.”

The Dreamliner will operate on certain flights to Johannesburg: KQ762, which departs Nairobi at 09h05, landing in Johannesburg at

12h20; and KQ763, which departs Johannesburg at 13h20, landing in Nairobi at 18h30. The Boeing 737-700 will still service the other routes.

There is currently no plan to change the NBO-JNB schedule.

To celebrate the introduction of the new aircraft on the route, KQ has launched a special offer, with fares starting at R4 762 (including taxes). The offer is valid for travel during July.

ZanzibarKQ has also re-introduced direct flights to Zanzibar from its Nairobi hub, having discontinued the service in 2011.

As of June 2, the airline flies five times a week between the two cities. The frequency of these flights is expected to increase to daily next month.

Flights depart from Jomo Kenyatta International Airport in Nairobi every Sunday, Tuesday, Thursday, Friday and Saturday at 22h30, arriving at the Abeid Amani Karume International Airport in Zanzibar at 23h45.

The return flight departs Zanzibar every Sunday, Monday, Wednesday, Friday and Saturday at 05h35 to arrive back at JKIA at 06h50.

The airline will operate the Embraer E190 aircraft on the route.

KQ deploys Dreamliner on JNB route

Debbie baDham

TRAVEL agents can now book airport transfers on the GDS, a first in South Africa, through EZ shuttle.

The company initially launched the EZ Shuttle API via automated booking platform, Travellinck, EZ Shuttle’s development partner in the initiative.

Soon the service will be integrated on to all GDSs

and EZ Shuttle is piloting the product on Amadeus.

EZ Shuttle API will enable agents to make real-time transfer bookings in seconds at any of the company’s branches across SA. They can also edit and amend reservations in real time, and make cancellations free of charge up to 24 hours before their reservation begins, says Guyck van Heerden, md of EZ Shuttle. He says the new

booking service gives agents the benefit of not having to work on a dual system and lets them view real-time inventory availability and receive onfirmation in just a few seconds. “The booking of transfers has always been associated with a significant amount of hassle. With the EZ Shuttle API, agents are looking at about 15 to 30 seconds for the entire process,” he says.

Transfers now available on the GDS

Travellers steer clear of Bangkok Are your clients avoiding Bangkok?

Yes, they’re heading straight for the islands instead.

No, they’re happy to spend a few nights in Bangkok.

67%

33%

TO ISLANDS

TO BANGKOK

june i no soutern afra ’s trae news weey - now...

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