AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
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CAR RENTAL At a tipping point? PREMIUM TRAVEL A new kind of luxury AVIS Re-inventing the rental experience ISSUE 137: MARCH 2019 www.businesstravellerafrica.co.za
SUN2887 IT’S HIGH TIME BUSINESS MEETS LEISURE Situated in the heart of Menlyn Maine, The Maslow Time Square is Sun International’s 238-room specialist business hotel. Not only a destination for professionals, but a portal for travellers. Boasting 17 floors that offer everything from business to leisure with tempting eateries, THE MASLOW TIME SQUARE a relaxing business lounge and 13 bespoke conference rooms. 209 Aramist Avenue, Pretoria, Gauteng, South Africa For the perfect balance of business and pleasure, Tel: 0860 846 377 / 0860 TIMESQ be our guest. Central Reservations: +27 11 780 7800 timesquare.reservations@suninternational.com
TRANQUILITY IN THE HEART OF SANDTON Set among the trees on the banks of the Sand River, you will find peace and tranquillity unmatched in Jo’burg’s north. Conveniently located to the Rivonia CBD and the major arterials, Sand River Guest House offers you something distinct: be it the 4 Star luxury rooms, geared for self catering, or simply our unique, relaxing river and garden setting. SAND RIVER T R E E SAND RIVER G U E S T H O U S E & H O U S E C O N F E R E N C E V E N U E G U E S T H O U S E ★ ★ &★ ★ T R E E H O U S E C O N F E R E N C E V E N U E ★ ★ ★ ★ It’s hard to believe you’re in Jo’burg T: +27 (0) 11 234 1666 / M: +27 (0) 71 324 7857 / www.sandriverguesthouse.com
Contents 12 40 34 35 Avis Avis – one of the world’s big car rental brands – is represented in Southern Africa by the Avis Budget Group, which has built a reputation as an innovative business travel industry player, constantly looking for ways to streamline 24 the rental process and provide cost- efficient corporate travel transportation, whilst remaining at the cutting-edge of technological advancement. FEATURES REGULARS 12 Car Rental This remains an industry under pressure, 04 Message from the Team 34 Tried and Tested What’s the editor ranting about now? Hotel Check with very small margins and not much • Crowne Plaza Heathrow T4 wiggle room. So, only the forward- thinking brands will survive, as the race 06 News Airline, hotel and other travel news Flight Check • Delta Air Lines is on to provide the best tech and stave off the threat of disruptors muscling their from Africa and beyond 36 Q & A Interviews 08 W Hospitality Column way into the car rental space. • Mark Jakins – Premier Hotels • Darryl Erasmus – TGCSA 24 Premium Travel The notion of what constitutes ‘premium’ Managing Director Trevor Ward gives us his take on the West African hotel industry 38 People on the Move or ‘luxury’ travel has changed, as a new The movers and shakers – breed of traveller is forcing suppliers to 09 ASATA Column what they’re up to now 40 Bite with the Editor re-look their offerings and come up with solutions that meet the needs of a more The latest from Chief Executive Officer personalised and authentic experience. Otto de Vries Louis van Zyl – CWT South Africa Visit businesstravellerafrica.co.za MARCH2019 | 3
ED’S LETTER I f you’re an African traveller who frequently travels abroad and who values on-time performance, with PUBLISHER Richard Lendrum regards the airlines you fly, then this might be for you. Research undertaken by UK travel insurance EDITOR company, Get Going, has revealed the best and worst Dylan Rogers airlines when it comes to being reliable. dylan@thefuture.co.za For the study in question, 50 airlines were studied and five key factors were taken into account from CONTRIBUTORS the month of November 2018, including: percentage Kate Kennedy, Tom Otley, Jenni Reid of flights delayed, average delay waiting time, the percentage of flights cancelled, safety ranking and JOURNALIST customer rating, with Get Going cross-referencing Kate Kennedy data from airlineratings.com, flightstats.com, flightaware.com, and caa.co.uk. Japan Airlines, who have 126 domestic and 54 DESIGN AND LAYOUT international routes, came out overall on top, with Nadette Voogd just 10.54% of flights being delayed and only 1.05% of flights cancelled across November. SUBSCRIPTIONS AND PRODUCTION Dutch-based KLM Cityhopper was actually the Mabel Ramafoko airline with the least amount of delayed flights, with mabel@thefuture.co.za only 9.6% of flights being delayed compared to Japan Airlines’ 10.54%. However, KLM Cityhopper had a SOUTH AFRICAN OFFICE slightly higher number of cancellations, with 1.13% Postal Address: of flights being cancelled and an average wait time PO Box 1746, Saxonwold, 2132 of 33 minutes. Physical Address: IndiGo is the most popular low-budget airline in 6 Rodwiella Rd, Edenberg India and they claimed third place in the top 10, with Telephone: +27 11 327 6107 14.7% of flights being delayed and an impressive 0.07% of flights being cancelled. NIGERIAN OFFICE Renowned airlines, Emirates and Qatar Airways, 3rd Floor, EuniBrown House195, also made the top 10, in positions six and seven, Ikorodu Road, Palmgrove,Lagos, Nigeria respectively. Nearly 85% of Emirates’ flights arrived Tel: +234 1 740 3236 Mobile: +234 803 963 0155 without delay, scoring a perfect 10 out of 10 for safety. Rivals Qatar Airways remained slightly behind with nearly 84% of their flights running on PUBLISHER – NORTH & WEST AFRICA time. Tope Ogbeni-Awe At the other end of the results, American low-cost tope.ogbeni-awe@topcommng.com carrier Frontier Airlines came out as the least reliable from the 50 global airlines studied, with 30.64% EDITORIAL ASSISTANT of flights delayed and an average delay time of 65 Mohammed Abdullahi minutes. American Airlines took second place for the least reliable airline, with 18.07% of flights being delayed and passengers waiting around 61 minutes on average. Spanish-based airline Vueling are known for their Business Traveller Africa is published under licence from Perry affordable prices, but with 23.74% of flights being Publications Limited. delayed and the average waiting time 55 minutes – it Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP. Tel: +44 20 7821 2740 was the third least reliable airline. www.businesstraveller.com Australian-owned Jetstar delayed nearly 28% of its flights and cancelled 2.13% of them. Air Canada also featured in the bottom 10, with 25.57% of its flights being delayed and passengers having to wait up to 46 minutes. Worth taking note of, if you’re busy planning your next overseas trip. Follow us on: Dylan Rogers Editor dylan@thefuture.co.za 4 | MARCH2019 Visit businesstravellerafrica.co.za
NEWS Marriott Continues Africa Expansion Marriott International has signed three new deals in Morocco, Ghana and Liberia. Anticipated to open in 2024, the St. Regis Marrakech Resort in Morocco will be a part of the Assoufid Golf Resort and include 80 rooms and villas. The offering will include six dining options, a spa, pool, fitness centre, and the 18-hole Assoufid Golf Club course. Residence Inn by Marriott Accra Kotoka Airport is projected to open in 2023. The 12-storey hotel will consist of 160 suites equipped with fully-functional kitchens. Other facilities will include three food and beverage outlets, including a rooftop bar, a health and leisure club and a boardroom. Marriott expects to make its debut in Liberia with the Four Points by Sheraton Monrovia with 111 rooms and four food and beverage outlets, Onomo Acquires Waterfront including a rooftop bar and lounge, and speciality restaurant, in 2020. Property African hotel group ONOMO Hotels has added Signature Lux Waterfront by ONOMO to its portfolio. The recently-launched hotel brings a new competitor to the Cape Town CBD and popular Waterfront area in South Africa’s Mother City. The hotel offers 89 contemporary-style rooms that preserve the Waterfront heritage building and a restaurant, Vivaldi, that serves breakfast, lunch and dinner. Signature LUX has placed a strong focus on servicing the ‘tech-lovers’ and offers self-service kiosks that allow guests to check in and out on the hotel’s app, a mobile key function, and easy reservation, laundry, room service, and instant messaging with the front desk, and wi-fi dialling services. Virgin Atlantic Helps Those With Hidden Disabilities Virgin Atlantic has launched its Hidden Airlink Enhances Nelspruit Disabilities scheme across its network. Offered to passengers at no extra cost, the scheme ensures Route the airline provides extra assistance to those Airlink has introduced enhancements to its Nelspruit Kruger who may need it, without them having to ask. A Mpumalanga International Airport-Cape Town service. Early specially-designed symbol, which can be worn morning flights depart Nelspruit KMIA at 07h00 and arrive in as a pin badge or discretely tucked away in your Cape Town at 09h25. Late afternoon flights depart Cape Town passport as a bookmark, alerts extensively trained International at 16h30 and arrive at Nelspruit KMIA at 18h45. Virgin Atlantic staff that extra assistance may be These flights operate Monday to Friday. On Saturdays a new early needed by an individual, or their family, whilst morning departure leaves Nelspruit KMIA at 07h40 and arrives in travelling. Prior to the flight taking place, the Cape Town at 10h05. The airline has also introduced business class Virgin Atlantic Special Assistance team can also from Cape Town to Hoedspruit and Nelspruit. work with the individual to ensure that their journey is as accommodating as possible. The team can arrange for travellers to be escorted through Rennies Joins BCD the airport, have access to priority boarding and reserve seating where necessary. Onboard, the Rennies Travel has parted ways with HRG and joined the BCD Travel team can also ensure that in-flight entertainment Global Network. Headquartered in South Africa, Rennies specializes is provided for blind passengers, with some crew in corporate travel, incentive and group travel, leisure travel and travel also trained in sign language. (Sign language- technologies. BCD will continue to operate its current South African trained crew need to be pre-booked.) joint venture, BCD Travel South Africa, separately. 6 | MARCH2019 For more news, visit businesstravellerafrica.co.za
Ethiopian Unveils New Airport Terminal Ethiopian Airlines recently unveiled a new state-of-the-art passenger terminal at Bole International Airport in Addis Ababa. The existing airport was initially designed to accommodate six million passengers annually; the upgraded terminal will accommodate 22 million passengers a year and will have upgraded runways and navigations systems. There is a new check-in hall with an elevated motorway; more international gates; check-in and immigration counters; duty-free shops; restaurants; auto-walks; escalators; a new 373-room hotel; panoramic lifts; and hi-tech airport systems such as automated bag drop solutions, e-gates, self-check-in kiosks, and baggage handling and tilting tray sorter systems. SAA and Comair Reach Settlement The legal dispute between South African Airways and Comair over commission payments has been settled. The matter concerned commissions (override incentive agreements) paid to various travel agents between April 2000 and May 2001, and between June 2001 and March 2005, which were found to be prohibited and in contravention of the Competition Act, following which Comair sued SAA for damages. The Supreme Court of Appeals ruled on the matter on 15 February, and the two parties were able to reach a settlement. In a press statement, SAA stated that its current airline leadership at board and executive management level was committed to closing all legacy issues and starting on a clean slate. Travelport and BCD Extend Partnership Travelport has renewed its long-standing partnership with BCD Travel. With this new agreement, Travelport Digital will continue to collaborate on BCD Travel’s digital traveller engagement solution, TripSource, making it the preferred way to manage all aspects of business travel. TripSource allows travellers to shop and book air, hotel and car services and to evolve the next generation of self-service corporate travel experience. TripSource uses real-time messaging capabilities to provide travel updates such as flight delays, gate changes, risk alerts and policy reminders, as well as company-specific information that helps travellers have a seamless, well-informed experience. RwandAir and Amadeus Extend Corporate Traveller Partnership Launches YOUR.CT RwandAir has extended its partnership with global distribution service provider Amadeus. Corporate Traveller, a division of the Flight Centre Travel Group, has Amadeus will now roll out solutions across launched YOUR.CT, a new technology platform in the South African passenger systems, revenue management, loyalty market. YOUR.CT, designed to meet the needs of SME corporates, will management, payments, data and analytics give travel arrangers, travellers and managers a single access point, via to support RwandAir’s plans of expanding its their customised dashboard, to information and functionalities that are network and fleet. The benefits of using the relevant to their business travel needs. This includes pre-trip approval, Amadeus Passenger System (Altéa) also extend to booking options, profile management, traveller tracking, travel alerts and Amadeus’ global travel seller network. reports. The platform can be accessed via PC, tablet or mobile device. For more news, visit businesstravellerafrica.co.za MARCH2019 | 7
COMMENT An Eye on West Africa H ad things gone to plan, I would have been travelling home to vote, and the hospitality industry writing this after the presidential election will have another lean weekend. Trevor Ward in Nigeria, and talking about the potential MD: W Hospitality impact of the result on the hospitality industry. Nigerians want to vote, they want to participate, Group No fewer than 73 candidates were in the running, but they also perceive a real possibility that there although I did notice that some of the smaller could be post-election violence, based on historical parties dumped their candidate at the last minute precedent. If Nigerians perceive that threat, then to endorse a better ‘runner’. The two front runners foreigners perceive it to a much greater degree, were President Buhari, the incumbent since 2015, and that severely affects the hotel sector. I know and Atiku Abubakar, a former Vice-President of of several expatriates (and Nigerians) who left the Nigeria. And the winner was… chaos and confusion! country to avoid being here during the election, and several other people who delayed their travel To paraphrase Robbie Burns, the best-laid plans to Lagos until after the election – not just after the of mice and men go oft awry. A few hours before date of the election, but for a few days afterwards, to voting was to start on the morning of 16 February, avoid any “after effects”. That means the hotels had a date that was set a year ago, the election authority low demand, exacerbated now from cancellations as announced (in the middle of the night) that it wasn’t people change their plans to avoid yet another date. ready, having sworn blind for weeks before that there would be no problems. What happened? Some fascinating research undertaken by Lagos- based FDC shows that elections can positively Well, one could say that Nigeria happened. INEC, impact GDP, inflation and exchange rates when they the election commission, said that due to the bad are credible and transparent, and especially when weather, the poor roads and other logistical and power changes without rancour to the opposition. operational challenges (including sabotage at three Unsurprisingly, they found that if an election goes election centres earlier in the week), essential badly, the impact is negative, especially on the election materials couldn’t be distributed as nation’s currency and, depending on government planned, and the election was postponed by a week. policy, unemployment. The election was delayed to 23 February (as too was There are no fewer than 23 countries in Africa with the election for state governors in early March, from elections this year, and of those 12 are for president. 2 to 9), but the hospitality industry is counting the Here in West Africa, the big ones are Nigeria and cost of what happened. Senegal, with Mauritania and Guinea Bissau also in election mode. Lagos almost literally shut down on 15 February so that people could travel to their home towns to vote. Whether the election goes well or badly, it is a fact The ports, schools, shops, banks, virtually every that foreign investors stay away for several months business closed either early or completely for the after the vote, to assess the effect on the polity day, to enable their staff to travel in daylight, safely. and on the economy. So the negative impact on the hotel industry continues, especially for those hotels Friday night is a big night in Lagos, with bars and that rely on foreign visitors (rather than domestic restaurants doing brisk business, but instead they travellers). 2018 was a great year for the Lagos hotel were dead. And on Saturday, polling day, there industry, with demand up 8% on the previous year was to have been a curfew all day, restricting all (when the economy grew just 2%), continuing the movements, so again the town was dead, and upward trend since the nadir of 2016. But it looks that continued into Sunday morning. The formal like Q1 2019 will be a bit of a wash-out, with four hospitality industry lost millions. But spare a weekends ‘cancelled’, and investor confidence taking thought also for the informal sector, the street a double hit, first from nervousness regarding the vendors who had stocked up on perishable food to elections, and now because of the delays. sell to the lines of voters. The Lagos Chamber of Commerce put the loss to the city’s economy due Democracy has its dividends, but also its costs. to the postponement of the election at $1.5 billion. We look to the long-term, and hope for a return to Whatever the actual figure, it’s a lot. But we should growth. C be used to it – the elections were delayed not only this year, but also in 2015 and 2011. www.w-hospitalitygroup.com So now there will be another dead weekend, when we should have had to live with just the one. Staff will have to take more time off, spend more money 8 | MARCH2019 Visit businesstravellerafrica.co.za
COMMENT Be cyber- RM RENTA TE L G • • LON IRST savvy W ORL DF E ver had a delayed flight? Exhausted, frustrated and in need of escape, it’s easy to whip out your phone, laptop or other mobile device and use the free wi-fi available at the airport or coffee shop. And in that moment, you put your, and your company’s, data, at risk. But, you’re not the only one. Research by international travel company Carlson Wagonlit Travel last year, showed that only 35% of business travellers felt confident about not sharing their company’s data while travelling. Marriott International suffered a massive data breach in 2018 – 500 million hotel guests’ information was compromised. One of the ways you can avoid this is by ensuring your company employs the services of an ASATA-accredited travel company, guaranteeing your business has a travel risk programme in place that protects sensitive information. Besides that, here are some other tips you can use to protect your data while travelling: 1. Avoid free wi-fi Although free wi-fi networks are more readily available, they also make it easier for hackers to reach your personal information. Ensure you’ve disabled all your mobile devices from auto-connect modes so that it cannot connect to a network without your knowledge while travelling. And insist that the inflight wi-fi your TMC books is safe and password protected. 2. Update your devices Spend time the day before you travel to update any operating software on all your mobile devices while you’re connected to a secure wi-fi network at work or home. Do this especially for apps that store personal information, like your Outlook and Uber. 3. Be password savvy Don’t use the same passwords for social media accounts and for applications and devices that store sensitive information. Social media sites are particularly vulnerable to cyberthieves wanting to access personal information via ‘fun’ apps. 4. Disable Bluetooth connectivity Make sure you disable Bluetooth connectivity you may have used to share documents in a meeting. Same applies for the Bluetooth you could have used to make phone calls on the road in a rental car, and remember to delete all data that may have been transferred to the car’s system before you return it. C Otto de Vries ASATA CEO Visit businesstravellerafrica.co.za MARCH2019 | 9
ADVERTORIAL AVIS RENT A CAR GETTING SOUTH AFRICA’S MOBILITY RIGHT as predicted, they must find ever more efficient and sustainable Urbanisation is accelerating on a massive scale worldwide and Africa’s ways to move people and goods. population growth will see our cities among the largest in the world The Johannesburg-Pretoria- within a decade. Innovative mobility solutions are crucial, writes Rainer Ekurhuleni megacity may reach 16 Gottschick, Chief Executive of Avis Rent a Car Southern Africa. million inhabitants by 2030. The old ways of single-driver, single- owner mobility must be relooked, O xford Economics predicts economy. It is predicted that by if cities growing at this pace are that by 2035, Africa will 2030, the industries, services and to continue moving people and be home to three of the 20 innovation of our planet’s 750 goods effectively and functioning most populous cities in the world. largest cities will generate $80 as coherent economies. At the same time, the GDP growth trillion, or 61% of total world GDP. Many experts, like those at of African cities will be the second Cities will become larger, busier PWC, predict that the market for fastest on earth, after China. and more densely populated. shared, on-demand vehicles will Urbanisation will increasingly If they are to survive, let alone be worth $1.4 trillion by 2030. power the growth of the world’s drive the economy of the planet In South Africa, with our 10 | MARCH2019 Visit businesstravellerafrica.co.za
established culture of mass transit Integrated transit – Zipcar using multiple mobility solutions, pioneered car sharing and on-demand ride-hailing services today is the world’s leading car were swiftly adopted when they sharing network, present in over appeared in 2013. They are now 500 cities and towns around part of a suite of options including the world, with one million car rental, car ownership, metro members. Across its network, rail, minibus taxis, BRT systems Zipcar has partnerships with and commuter rail. transit agencies in cities across At Avis, we are committed to the globe, helping to facilitate playing our role in this urban first/last mile connectivity and mobility matrix. As car ownership enable more efficient “whole trips” becomes less of a necessity, that combine various modes of services like car rental, long-term transport. car hire, “car-where-you-are” and chauffeur-driven services are On-street parking – Zipcar drawing increasing interest. offers affordable, safe and clean Rainer Gottschick Internationally, the Avis transportation in places that don’t CEO: Avis Rent a Car Southern Africa Budget Group has been actively have many transport options anticipating and driving the and where there is little public rental experience, digitising the change in mobility. From the parking. With Zipcar, one needn’t business and developing new acquisition of Zipcar in 2013, to worry about parking – you simply models, advancing into areas like the groundbreaking Avis mobile drop the car off at its home mobility-as-a-service, connected app, the launch of the Mobility location. cars, autonomous vehicles, smart Lab in Kansas City, the addition of cities and more. thousands of connected cars to its Ride hailing – To help expand This fascinating process will global fleet, and partnerships with the benefits of ride hailing, help to redefine urban living in Waymo, Toyota and Continental, internationally the Avis Budget the decades to come. the Avis Budget Group has been Group has partnered with on- unafraid to take risks to move demand transportation company ABOUT AVIS its core business - as well as the Lyft to make their fleet available Founded in 1946 by Warren E industry – forward. on a monthly basis to people who Avis, who opened America’s first Today, the mobility landscape want to drive, but would prefer car rental counter at Willow Run is shifting beneath our feet, as not to own their cars. Airport, Avis Rent a Car is today consumers increasingly look to South Africa’s leading car rental on-demand services to get from Multi-modal transit – Combining company with over 117 outlets point A to point B, including car solutions with rail travel is a throughout Southern Africa. Since bikes, scooters, vans, cars they logical solution. In the US, Avis 1962 its renowned brand promise drive, cars driven by others, has partnered with Brightline, of “We try Harder” has permeated and someday, cars that drive a privately-owned passenger through the business and has themselves. rail service, to offer passengers been the driving force behind the The next stage of mobility will convenient access to Avis and brand being at the forefront of undoubtedly be autonomous, self- Zipcar vehicles, which can be technolog y, introducing innovative driving vehicles, which have been booked on the Brightline app. product offerings, being the first rigorously tested for more than a car rental company to achieve decade by companies like Waymo. Data intelligence – Organisations carbon-neutral accreditation, As of 2018, Waymo had tested its that partner with Avis can pioneering environmental system in 25 cities across the US, have access to anonymised initiatives, exceptional customer logging more than eight million connected car data and expert service, and from care for kilometres on public roads and analysis through an Amazon employees to community more than eight billion kilometres Web Services collaboration. This upliftment. Avis offers a total via simulation. could encourage future vehicle transport solution for business Avis has a vested interest in innovation for connected travellers or recreation purposes consisting ensuring efficient, equitable and and inform smart city planning of: Avis Rent a Car, Avis Point 2 safe transportation in our cities using road-condition and traffic- Point, Avis Chauffeur Drive, Avis and communities. Internationally, volume data. Luxury Cars, Avis Van Rental, the Avis Budget Group is working Mobility is becoming Avis Truck Rental and Avis Car on solutions with various partners commoditised, and individuals Sales. C across multiple parts of the and organisations are increasingly mobility ecosystem. As they expecting to be able to customise CONTACT become viable, we look forward transport solutions to their needs. Visit the website for more to their eventual adoption in this To ensure mobility works for information www.avis.co.za or country. everyone, Avis is reinventing the @AvisSouthAfrica Visit businesstravellerafrica.co.za MARCH2019 | 11
FEATURE – CAR RENTAL Moving with the times The car rental industry is having to re-invent itself, as consumers change the way they see transport and traditional models are thrown out of the window. Kate Kennedy looks at this changing environment. 12 | MARCH2019 Visit businesstravellerafrica.co.za
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FEATURE – CAR RENTAL C ars remain a vital corporate car rental market has client,” he says. component of land been in decline for the past three Woodford was founded in 1991 travel for much of years. with a small fleet of just two Africa. Whether you “The lack of growth in the vehicles in Durban. In the last 18 rent a vehicle, drive yourself South African economy is the years, the company has grown into around in a private car, catch a most pressing issue facing our a multi-locational car hire provider lift with a friend, flag down a taxi industry,” he says. “In the past with over 1,500 vehicles. or book an Uber, the humble and number of years all key customer “The South African car hardworking automobile is the segments – corporate, government, rental market is headed toward vehicle that gets you from A to B. local leisure and insurance a stage where volumes are And car rental is at the forefront replacement – have seen volume increasing rapidly, leading to of this movement. contracting. The only segment an oversupply with cost-cutting According to The Car Rental that has shown growth has been as the differentiating measure,” Industry in South Africa 2018 report international visitors, although in says Suleman. “We believe that by Research and Markets, “the the last year this growth has been service is the true differentiator, South African car rental industry significantly lower.” with factors such as expediency grew revenue by 3.6% in 2017, Every car rental player has and waiting time critical to the reaching an estimated total of been affected by the economy, experience. “ R5.2bn ($370m). The industry but according to Essa Ebrahim continued to be driven by business Suleman, Director at Woodford car rental, which accounted for Car Hire, there’s a broader issue at 53% of the value of all sales.” play in the South African market – That’s not to say that the car that of a lack of choice. “ The South African car rental rental industry doesn’t have its challenges. “Traditionally, a few agencies have dominated the market with industry grew revenue by 3.6% According to Lance Smith, a ‘one-size-fits-all’ approach in 2017, reaching an estimated Executive Director: Sales at Avis that doesn't allow for flexibility Budget Southern Africa, the or agility when it comes to the total of R5.2bn ($370m). ” 14 | MARCH2019 Visit businesstravellerafrica.co.za
TECHNOLOGY Those factors cited by Suleman are greatly affected by technolog y, which is now playing a huge role in the service offering of all car rental brands, helping streamline the rental process and making it as easy as possible for customers to book, pay for, collect and drop off a hired car. These brands are mindful of the fact that they need this area of the business to be as seamless as possible, in order for them to remain relevant and competitive, in the face of new technologies and offerings creeping into the car rental space. Avis, a stalwart of the car rental industry, has developed its global preferred service which enables customers to sign one master rental agreement and then simply present their drivers licence on picking up their vehicle. This service is being enhanced with mobile apps, key lockers and connected vehicles to enable its customers to bypass the queues and to go straight to their rental vehicle. The company has also introduced Avis SafeDrive, a smartphone app that allows users to access their trip data, see their driving scores and get suggestions on how to improve these. The app will also use the customer’s phone and the Avis SafeDrive Sensor to alert the company of any severe impacts. “It turns your phone into a panic button for in-vehicle emergencies and gives you access SECURE DRIVE Mandatory training for all staff includes ‘street wise’ driver training, hijack to the 24-hour emergency centre,” Whilst not a traditional car hire company says Smith. nor point-to-point service, Secure prevention, first aid, advanced driving, basic motor mechanics, and counter In the United States, Avis Drive is offering business travellers on surveillance. Each client is assigned has launched a voice-powered the African continent an alternative, a dedicated journey facilitator who is car reservation capability with particularly if their focus is on security actively involved from the first request Amazon Alexa and announced and peace of mind. until after the trip has been completed. Google Home integration with It offers cost-effective, secure travel with chauffeur-driven vehicles, and Customers have access to the ArcWatch artificial intelligence capabilities. currently has dedicated offices in Cape App, a geolocation app that allows With new features on its Avis Town, Johannesburg, Lagos and Abuja customers to check in along the way, as mobile app – a larger variety of (Nigeria), and Nairobi (Kenya). Through well as a distress function which pin- vehicles, fuel and parking options, long-term, strategic partnerships it also drops their location. courtesy bus tracking, rental offers Secure Drive services in over 40 Secure Drive’s service offering includes recipients, and a ‘find my car’ countries around the world, not only armed transportation in some locations feature – customers can manage Africa. and crime or risk-related updates. their entire rental from their Secure Drive’s drivers are specially Its fleet includes a variety of vehicles smartphone, choose the exact car trained with a skill set that is not offered from entry level sedans to Mercedes they want, change or upgrade by any other company in the market. Benz Vianos, various SUVs and luxury their vehicle while at or near the sedans. lot with a simple swipe, view their Visit businesstravellerafrica.co.za MARCH2019 | 15
ADVERTORIAL WOODFORD Powered by Passion Woodford was founded in 1991 with the aim of providing a low-cost alternative in vehicle hire that places value-for-money and service excellence first. From a small fleet of just two vehicles in Durban, the company has grown into a multi-locational car hire provider with over 1,500 vehicles offered over three divisions. “W e service a wide and of passenger sales and paperless ever-growing client check-in systems. base spread across Corporate clients receive a the private, public and corporate visit from a Woodford Business sector,” says Mohammed Owais Development Manager to Suleman, Woodford’s CEO. “Our understand their business ability to adapt across sectors requirements and once the credit is our key differentiator. Our forms have been vetted, Woodford product offering evolves with our compiles a comprehensive, value- client’s needs, always with the inclusive offer. The benefits of this aim of improving the total client programme include guaranteed experience.” rates, 30 days to pay, upgrades Woodford offer cars, bakkies for senior managers, guaranteed and trucks for private and availability during peak seasons, commercial hire and a logistics dedicated account manager and no division that manages major local queuing. and international accounts. Woodford’s comprehensive With nearly 30 years of chauffeur service makes use of a experience, this family-owned professional, multi-lingual drivers company has diversified and who are available around the strengthened its offering by clock to transport you in a range growing strong relationships with of vehicles – from entry level the tourism industry, government to luxury SU Vs. All chauffeur divisions and the Airports drivers complete an advanced Company of South Africa. driver training course to ensure experience in event planning and Woodford’s passenger hire, with passenger safety. Drivers are execution across various industries, a wide range of vehicles spanning equipped with GPS tracking and working with the public and multiple categories, has a national are vastly knowledgeable about private sector relating to local and footprint at all major airports the areas in which they operate. international clientele. Vehicle and centres, and has built its Event planners can make convoys and specific vehicle offering around competitive rates, use of Woodford’s complete colours are both available, with an expansive fleet, and service project management solution senior members on the ground to excellence. The division also encompassing all transportation monitor the event. C presents innovative technolog y, requirements for large-scale including its user-friendly conferences and high-profile event. CONTACT website that facilitates the bulk Woodford has over eight years’ woodford.co.za 16 | MARCH2019 Visit businesstravellerafrica.co.za
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FEATURE – CAR RENTAL TELEMATICS “ The South African market’s move toward embracing Telematics, the long-distance transmission of computerized information, presents a huge opportunity to the car rental industry. these 'in-car' technologies The Internet of Things has provided companies with the ability to is relatively curtailed by leverage new technology for better fleet management and allows them to closely monitor vehicle performance and safety. bandwidth issues and the Connected cars maximise operational efficiency and increase lack of infrastructure. ” customer satisfaction. Idle vehicles are easy to track and monitoring fuel levels becomes transparent, as telematics can tell companies rental agreement, get real-time updates, and and customers how much fuel was in the tank at the time of more. collection and drop off – a win-win situation. Secure Drive, a security chauffeur provider So, greater operational efficiency and happier customers? It’s no and part of the international Arcfyre Group, has wonder that companies remain keen on testing new technology. developed the ArcWatch app, which allows clients In February 2018, Avis Budget Group announced that it would and staff to activate the ‘Help Me’ and ‘Check-In’ convert 50,000 vehicles into connected cars by installing telematics. services, which immediately notify Secure Drive’s “The integration of telematics will accelerate our ability to meet 24/7 Security Research & Communicate Centre our goal of a fully connected fleet by 2020,” says Arthur Orduña, of your location, as well as the support required. Executive Vice-President and Chief Innovation Officer at Avis Given that much of the company’s clientele Budget Group. “Connected cars offer us unparalleled potential consists of people who require lower levels of to dramatically improve the customer experience while also streamlining operations and reducing costs, which is why we’re security during their travels, these services are taking aggressive steps to fully connect our fleet as quickly as important to ensure high levels of safety. possible.” According to Essa Ebrahim Suleman, Woodford Premium models within Woodford Car Hire’s fleet feature some Car Hire has made significant investments into telematic technology, including the ability to communicate with its management, support, and technolog y systems clients via onboard systems, driver aids and collision warnings. to ensure greater efficiency in the entire car “However, the South African market’s move toward embracing these rental process. 'in-car' technologies is relatively curtailed by bandwidth issues and “From creating a smooth marketing and the lack of infrastructure,” says Essa Ebrahim Suleman, Director at communication flow to ensuring coherent user Woodford. design and experience on the website and online booking system, to paperless pick-up and drop- (Source: 2018 State of the Car Rental Industry report by Perficient) off at branches, Woodford is at the cutting-edge of technology that supports a seamless customer 18 | MARCH2019 Visit businesstravellerafrica.co.za
FEATURE – CAR RENTAL experience,” he says. “On the back- end, Woodford has a fully-fledged control room, tracking facilities, and management systems that ensure that everything runs as it should.” Hertz, another longstanding industry player, is also using technolog y to go completely paperless, with all documentation moving online. Both Hertz and Firefly have a Mobile Assist app (as a nominally priced, add-on option to the rental agreement) with services that include roadside, medical and legal assistance. And the Vehicle Events app is streamlining the process involved in damage to rental vehicles. RIDE HAILING The sharing economy has waded into the car rental space – with regards providing an alternative to existing and prospective car rental customers – and technological advancement has resulted in the emergence of services such as Uber and Lyft, which are the prominent brands in the space. The Car Rental Industry in South Africa 2018 report found that, “although the growth of ridesharing and car-sharing has begun to affect the international car rental market, local car rental companies believe that South Africa has not followed this trend. However, major players in the industry have acknowledged that with technolog y playing an increased role in travellers’ lives, the car rental industry has had to SELF-DRIVING CARS improve its services and respond They might not be viable right now, but self-driving cars are the way of the to the impact that Uber and other future, and car rental companies are getting in early, in order to stay well- technologies are having on the positioned to meet this new reality. market and traveller behaviour.” Just two examples are Avis Budget Group’s partnership with Alphabet’s “The sharing economy is no (Google) Waymo and Hertz’s partnership with Apple. longer a concept, but a reality with These companies have identified an important role within this developing rapidly accelerating adoption,” market that needs to be filled, one that they are uniquely qualified to fill. says Martin Lydall, Chief “Autonomous vehicles will still need to be managed – fleeted, de-fleeted, Commercial Officer of Europcar maintained and moved – and car rental companies are poised to do that, as they in South Africa. “Young people do already run the largest fleets in [the] US and even the world,” says Chris Brown, not view ownership in the same Executive Editor at Auto Rental News. way as previous generations did, “In the car rental industry, what we do have are great fleet management and for very good reason. This is capabilities that are very difficult to replicate… nobody has that kind of chain unlikely to change.” from life to grave of managing a car,” Tom Kennedy, Hertz’s Chief Financial And some of the stats out there Officer, said during a talk at a Friends of Finance luncheon at The University of are quite revealing. Tulsa. A report published by Certify, a provider of expense (Source: 2018 State of the Car Rental Industry report by Perficient) management software – which 20 | MARCH2019 Visit businesstravellerafrica.co.za
analysed US business travel and if one reads between the lines, is has been taking steps to ensure expense spending trends for only to the point-to-point services that it is fully-equipped to ride 2017 - found that “ride hailing offered by those in the car rental whatever change takes place to accounted for 68% of the overall space. That would be a ‘like-for- the industry, and in 2013 acquired transaction volume in the ground like’ comparison. leading car-sharing company transportation category last year The Woodford view is slightly Zipcar to broaden its offering. (2017), led by Uber and rival Lyft.” different. It went on to say that the car “We believe that the technolog y CONCLUSION rental market accounted for 25% of revolutions associated with such There is no doubt that the face transactions, while taxis accounted initiatives ensure that the industry of car rental is changing, but the for 7%. is not only kept on its toes, but is major players seem to be moving That being said, some of the also forced to adapt and improve with that change, as models are players in the local car rental its offering,” says Suleman. being re-looked, technolog y is market believe the likes of Uber Lance Smith at Avis has a being embraced, and the entire are only affecting one area of their similar view. process of hiring a vehicle is being business, and, as it stands, are not “The shared economy in streamlined. a threat. transportation has created new But, despite the protestations “Traditional car rental is customers in people that would of some of the major players, an average length of rental of never have used the service the likes of Uber have changed approximately four to five days, before,” he says. “This has been the way consumers view depending on the segment of good for the car rental market as it transportation, and whilst the customer,” says Rebone Motsatsi, gives consumers more of a reason sharing economy might not be Executive Commercial at Avis, not to own a vehicle and to rather currently having a big impact suggesting that one shouldn’t rent, lease, rideshare, hail a taxi or on the car rental industry, that compare the Ubers of this world call for an Uber when they have a could change, as technolog y with traditional car rental. Instead, need for mobility.” plays a bigger and bigger role in the threat, if there is one at all, That being said, Avis, globally, consumers’ lives. C Secure Drive: WHETHER YOU’RE • Offers a pre-booked, tailor-made service for individuals and groups TRAVELLING FOR BUSINESS • Provides secure passenger point-to-point OR LEISURE, YOUR SAFETY and full day services • Utilises a variety of vehicles to meet all client needs SHOULD BE A TOP PRIORITY • Operates in South Africa and in more than 40 countries in Africa, the Middle East and Asia Tel: +27 (0)11 794 9502 • Email info@securedrive.co.za Visit businesstravellerafrica.co.za www.securedrive.co.za MARCH2019 | 21
Deniel 2 months ago We stayed a week ago with our family of 5. The rooms were clean, spacious and the bathrooms and showers are new. Don’t fall for online reviews. Whenever you take a Sho’t Left, always book graded accommodation.
FEATURE – PREMIUM TRAVEL Premium travel re-defined Millennials are changing the way modern day luxury travel is viewed and supplied, with ‘personalisation’, ‘authenticity’, and ‘digitally- savvy’ the buzzwords. 24 | MARCH2019 Visit businesstravellerafrica.co.za
T here’s a different face to luxury or ‘premium’ travel. Gone are the old perceptions of what ‘luxury’ constitutes, as a new type of traveller has emerged, demanding that his or her needs and expectations of what a premium travel experience entails, are met. This ‘old and new luxury’ taps into the generational differences between the travellers of today and the travellers of the past. It’s something picked up on by Anthony Berklich, founder of Inspired Citizen. He was speaking at WTM Africa in Cape Town in 2017, looking specifically at the millennial traveller. “Parents of millennials perceive luxury in a somewhat old-school way. Butlers in tuxedos, stuffy hotel furnishings, being greeted by ‘sir’ and ‘madam’,” said Berklich. But, according to him, millennial travellers go in search of a more ‘authentic’ experience – something that offers them a bit more meaning. “The narrative, the story behind it, is what they are buying into,” he said. According to Berklich, millennials “seek unique and special, exclusive experiences and items that make them different and create a separation between them and the masses and, most importantly, allow them to express themselves. They are a little narcissistic and will spend money to feel special.” No surprise, then, to see some suppliers tailoring their offerings to meet these millennial demands. That’s also because the numbers back it up. According to ITB-IPK’s World Travel Monitor 2018 survey, half of all luxury trips are made by millennials. Indicatively, outbound trips by millennials (aged 18-38) grew by 15% in 2017 compared to the previous year, accounting for a market share of over 40% of all global outbound trips. At the same time, due to better jobs and increasing income, the survey results indicated that millennials account for half of all international luxury trips – with expenditure over 750 euros per night. Visit businesstravellerafrica.co.za MARCH2019 | 25
FEATURE – PREMIUM TRAVEL “Today, millennials are the as a major luxury consumer. most influential consumer in the “In few sectors have millennials “ Parents of millennials perceive premium travel space, having had more impact than in travel luxury in a somewhat old-school become both brand critics and and tourism. Their expectations ambassadors,” says John Watson, and behaviour are significantly way. Butlers in tuxedos, stuffy Regional Director of Africa for Preferred Hotels & Resorts. “They different from their parents’ and older generations’. Their whole hotel furnishings, being greeted have played a significant role in travel journey has changed, from by ‘sir’ and ‘madam’. ” technological changes through the initial inspiration phase to their use of mobile devices to the actual travel and holiday book and share travel experiences, experience,” said Mancau. “The which includes how the travel importance of social media to play in the global travel space industry has shifted to connect as influencer on the choice of going forward, but there are other with them where they want to be holiday for example, the quest for players in this market and other found.” authentic holiday experiences and trends that remain constant, As a result, the luxury segment off-beaten track adventures, the regardless of generation. is undergoing major changes due demand for personalized services, “We have entered a new era of to the structural shifts in demand their awareness of security luxury travel,” says the executive patterns by consumers. They are threats….changes are happening summary in Amadeus’s ‘Shaping a completely different type of along the entire value chain.” the Future of Luxury Travel - Future consumer with distinguishing But, let’s not get too side- Traveller Tribes 2030’ report. features, such as desire for tracked or too fixated on “As newly affluent citizens pop experience, tech-sav v y, and high millennials. There are other up in different regions of the morals. luxury travellers out there, and world, and the travel industry In their report, ‘Millennials. The to ignore them would be short- expands to meet their demands, generation reshaping travel and sighted. how can travel brands cater for shopping habits’, Roland Berger Further to that, Berklich’s more luxury customers while and Global Blue published a points regarding the millennial somehow maintaining a sense of joint interview, where Sebastien generation is not a suggestion that exclusivity?” Mancau and Laurent Delmas suppliers in the premium travel The report goes on to say that discussed major trends and shifts space need to remain focused “as emergent middle classes seek in luxury travel that were caused on this generation. Sure, this the material aspect of luxury by the emergence of millennials generation will have a big role travel, more mature markets 26 | MARCH2019 Visit businesstravellerafrica.co.za
19_085 © 2019 Preferred Hotels & Resorts I am currently out of the office with limited access to email. To escape your next meeting, visit P R E F E R R E D H O T E L S . C O M MONTAGE L AGUNA BEACH LAGUNA BEACH, CALIFORNIA, USA 26 SUNSET VILL A HOTEL CARLTON KENZI TOWER HOTEL LYALL HOTEL AND SPA CAPE TOWN, WESTERN CAPE, SOUTH AFRICA ANTANANARIVO, MADAGASCAR CASABLANCA, MOROCCO SOUTH YARRA, MELBOURNE, AUSTRALIA
FEATURE – PREMIUM TRAVEL are craving a new, evolved kind and get the perspective of the Town. “This market expects their of luxury. This is why offering suppliers, starting with those in hotel to anticipate their needs, luxury customers a relevant, the hotel space? thereby eliminating the need personal and exclusive experience “Premium travellers want for asking for assistance. From will become even more crucial comfort and personalized service, larger requirements, such as than it is today – it will be a privacy, spacious rooms, amenities award-winning restaurants and differentiating factor between old in the room, an office away from bars where one can entertain and new luxury.” the office, and fast and reliable clients and colleagues and internet connectivity,” says spas to unwind during a busy WHAT DO THEY WANT? Neelma Maru, Director of Sales & itinerary, to smaller details such The Amadeus report point Marketing at Mövenpick Hotel & as international plug points suggests a link back to the Residences Nairobi in Kenya. in all room, safes that can personalisation and authenticity “The premium guest is accommodate large laptops, and a that the millennial generation well-travelled and knows and complimentary shoeshine service.” craves, but can this be applied to appreciates exceptional service But all of this doesn’t come all market segments? and product,” says Mark Wernich, cheap, and there can be no Perhaps, let’s flip it around General Manager of the Taj Cape denying that there’s been a general tightening of belts, post- 2008 global economic downturn. What has this meant for the luxury space? “Although travellers today are feeling the economic pinch and are looking at ways to cut back on their spending, when it comes to luxury items they are still choosing quality and are prepared to pay more for premium and affordable luxury products,” says Zoleka Skweyiya, Sun International Group Manager for Communications & Customer Insights. “Regardless of whether someone is visiting us for a meal, to spend a night in our hotels, or to be entertained at the casino or a show, they want to physically connect with other people. A digital platform is unable to offer this social element that people Singapore Airlines will always need, which is why we believe the hospitality industry will always be relevant.” Sure, it will remain relevant, but let’s get back to a focus on spend, because, if it’s too expensive, no amount of personalisation or authenticity is going to change the situation. Or is it a situation of: regardless of the state of the economy, those with the means will always have the means, so getting too fixated on a sluggish economy is missing the point? “While the industry was in decline following the 2008 financial crisis, the hotel development pipeline started to recover and is now robust, showing significant growth for the premium travel sector,” says Watson. “This year, we will DAVINCI Hotel & Suites welcome at least 23 brand new- 28 | MARCH2019 Visit businesstravellerafrica.co.za
Experience the La Premiere suite on the Johannesburg Paris route from 01 April 2019. Operated with a Boeing 777-300 aircraft. Also equipped with a lie flat bed in the Business class cabin. www.airfrance.co.za Visit businesstravellerafrica.co.za MARCH2019 | 29
FEATURE – PREMIUM TRAVEL T he Royal Livingstone by Anantara build luxury hotels (to the Preferred cruise around the Arctic on Hotels & Resorts member portfolio), illustrating the confidence that a famous yacht. For another, it could be the reassurance of “ While the industry was in hotel asset owners and developers having their dietary requirements decline following the 2008 have in the spending behaviours automatically catered for of luxury travel consumers and throughout their entire holiday financial crisis, the hotel the demand for premium hotel and a bespoke designer wardrobe development pipeline started to products in both popular and waiting for them in their hotel emerging markets.” room – without them having to recover and is now robust. ” Yes, but are we talking both ask. For some, it could be having leisure and business travel their favourite Michelin-starred markets here? chef flown in to prepare a meal “The corporate travel segment in a Bedouin tent in the middle of products and communications did go through a tough phase the Sahara. Curating something more meaningful than ever in the years following the that appeals to them on a specific, before.” economic downturn (in 2008), personal level that goes above a Today, travel executives realize, with shrinking travel budgets traveller’s ‘norms’ is key to the building more relevant and and severe cuts in five-star hotel next chapter of luxury travel.” personalized customer experiences spending. However, purchasing All of which means that is critical, because it helps trends in recent years indicate an suppliers have to work harder differentiate their brands in an almost complete recovery, which to earn the business of luxury increasingly competitive market. signals a new cycle,” says Watson. travellers who place a premium on “It’s becoming harder and personalisation. harder to stand out,” said Loni PERSONALISATION There’s no doubt that Stark, Senior Director of Strateg y The bottom line is that what ‘personalisation’ has become and Product Marketing at Adobe, constitutes ‘luxury’ is a very one of the buzzwords in travel in an interview with CMO.com. personal thing, with no one customer experience. That’s “Many brands are setting the rule applying to each and every down to the expectations of bar higher by engaging with traveller across the board. more demanding travellers and customers on a personal level with “Luxury travel is subjective,” the volume of data available to content and messaging that is says the Amadeus report. suppliers, who, according to Skift, personalized, relevant, and more “For one traveller, it could be “have all the information and likely to garner engagement.” a private multimillion-dollar tools they need to make their Despite this, many travel 30 | MARCH2019 Visit businesstravellerafrica.co.za
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