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APRIL/MAY 2018 ISSUE 275 South Africa ‘flush with opportunity’ – VIRGIN ATLANTIC Seychelles campaign boosting sales “Many shipping lines missed the boat” THE MAGAZINE FOR SOUTH AFRICAN TRAVEL PROFESSIONALS.
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comment Publisher’s Notebook T he first budget of the Ramaphosa era didn’t do That will not only stabilise the currency but lift the sentiment the domestic and inbound tourism industry any so crucial in motivating, particularly leisure, travel. favours, even though the new president had em- phasised the importance of tourism – inbound, As we head towards mid-year, the prognosis for foreign travel is that is – to the economy and job creation in his significantly more encouraging than at the start of 2018. acceptance speech. Domestic tourism will feel the heat from the increase in VAT and the large jump in the fuel levy, a favorite and easy target for government, which will particularly hit short-break business and boost prices of products and services across the economy. And, as prices rise, the collection of VAT, of course, increases, regardless of the additional percentage. Suppliers are caught between a rock and a hard place as domes- tic suppliers feel the pinch and a worrying number of foreign visitors are commenting on the perception that South Africa, a long-haul destination, is becoming much more costly relative to “I just received this on my packages available to international competitor destinations. desk and absolutely love Outbound travel, however, has benefitted from the Ramaphosa the new format!” effect on business confidence and the resultant strengthening – Theresa Szjewallo, The of the rand. Substantive measures to address corruption, gov- Travel Corporation MD ernance and incompetence should continue to build confidence and investment. 22722 OLD FRIENDS YOUNG TALENT Bidvest Car Rental invites you to go out and explore the beauty of Southern Africa, whenever you can. With our premium service in 120 locations, we’ve got you covered, wherever the road takes you. Car Rental www.bidvestcarrental.co.za • reservations@bidvestcarrental.co.za • Call 086 101 7722 Because every minute counts.
44553 Cover image: Virgin Atlantic 787 INSIDE More benefits for 7 travel agents are in the pipeline, says IATA’s regional VP. Seychelles is grow- 16 ing its South Africa business through effective trade initiatives. Lufthansa’s Direct 18 Connect avoids the controversial distribution charge. Travel extraordinary What may seem for business or leisure, fly Airlink direct from 22 best value could be Johannesburg, Cape Town, Durban and false economy, says Livingstone to Nelspruit KMIA, capital city of British Airways’ Sue Mpumalanga, and travel onwards to the Kruger Petrie. National Park. Nelspruit KMIA further connects you to Vilanculos, gateway to the Bazaruto and Benguerra islands. Editorial Director | John Wardall john@tir.co.za flyairlink.com @fly_airlink Fly Airlink Managing Editor | Sarah Cornwell sarah@tir.co.za Head Office General Manager/ 9 Ruby Terrace, Noordhoek 7979 Ad Director| Dominic Wardall PO Box 745 Noordhoek 7979 dominic@tir.co.za Cape Town Tel: +27 21 789 0053 Contributors Richard Holmes Printing | Formeset Printers Kate Els © TTG Southern Africa 2018 Shannon Latimer Publisher | TTG Southern Africa CC Administration | Nerina Nicholson Reg no: 1995/030913/23 Accounts | Brenda Smith www.tir.co.za accounts@tir.co.za @TIR_SA
ASSOCIATIONS The survival of your business depends on being compliant By Otto de Vries, Association of Southern African Travel Agents CEO IT is getting harder, not easier, to work in travel. And in 2018, it collecting, handling and storing a customer’s data. ASATA has is all coming to a head. urged owners and managers to enroll staff in the association’s The gentle warnings South Africa’s travel sector received over training initiatives as part of the ASATA Professional Pro- the past few years to comply with PCI DSS - Payment Card gramme so that they can assist in essential compliance. Industry Data Security Standard – and PoPI – Protection of Failure to do so may result in a fine, arrest or, worse, the clo- Personal Information Act – have now become red alerts. sure of one’s business. The travel industry is working hard to become compliant, but Whether you are ready or not, PCI DSS and PoPI will be the a recent PCI DSS readiness survey conducted among members new normal in the very near future. ASATA’s role is to help get of ASATA indicated that fewer than 40 percent of those polled all relevant staff on board and to embrace the opportunities admitted they would be compliant by IATA’s March 1 deadline. that come with compliance. The industry recognises that both PCI DSS and PoPI make Let’s work together to position ourselves even more as con- business sense. That these are necessary additions to the travel sumer-friendly and the champions in protecting our customers landscape and are there to protect our customers, our employ- from data breaches and fraud. “The gentle warnings South Africa’s travel sector received over the past few years… have now become red alerts.” Otto de Vries, ASATA ees and travel companies. Compliance further enhances the unique selling proposition of travel companies; we look after our customers’ privacy and data because we are compliant and so you should trust us with your business. Our very survival depends on our ability to adopt responsible data protection and privacy practices, in an environment where fraud – both internal and external – becomes a greater threat every day. The whole premise behind PCI DSS is to protect card data from hackers and thieves. Under the new standard, scribbling a customer’s credit card details on a post-it note would no longer be acceptable. Collecting, storing, using and discarding data INTERNATIONAL ASSOCIATIONS becomes something that must be done in a secure and safe way. And it is the same when it comes to PoPI. Following the news that Hilton is to follow Marriott ASATA recognises its role in supporting the travel industry to International to reduce agency commissions from 10 comply with local and international legal and industry require- to seven percent on October 1, the American Society ments and will be rolling out a series of workshops and webi- of Travel Agents expressed disappointment over the nars tackling the topics of PCI DSS, POPI, data security and devaluation of the relationship and made a veiled fraud, providing expert advice to help members prepare their threat that it intended to defend the role of travel businesses for this new reality. Along with these webinars and agents by highlighting suppliers, whose business workshops will come resources with tips and frequently asked practices recognise agents’ value. This was happen- questions that can be used as a handy reference by travel firms ing, the association said, at a time when consumer re-engineering how they store and use data so that they ensure usage of travel agents was on the rise in the US. It 100 percent compliance. is also to raise concerns over supplier consolidation The onus to comply rests not only with the owner or manager with the government. of a travel business. It falls on every staff member involved in 6 Travel Industry Review | April/May 2018
ASSOCIATIONS New technologies will transform the passenger experience By Muhammad Al Bakri, Regional Vice President, Africa & the Middle East, International Air Transport Association THE PACE of technological change reference numbers and documents when they travel. is accelerating. Over the last few years the travel experience has Artificial Intelligence become more efficient thanks Artificial Intelligence is already being embraced by the industry to new technologies such as to improve the passenger experience. mobile internet, artificial 14 percent of airlines and nine percent of airports use intelligence, virtual reality, Chatbots with AI technology to communicate effectively with big-data, internet of things passengers. and biometrics. Many more AI allows simple queries to be handled swiftly, freeing benefits are yet to be real- up customer service professionals to tackle more dif- ised, benefitting travel agents, ficult issues effectively. AI has the potential to revolu- their customers and the air- tionise travel by providing access to a 24-hour personal lines. In 2018 the following new travel assistant able to predict travel choices, knows technologies will continue to trans- preferences and can create the package. form air travel: Blockchain Biometric technology Few technological innovations have A seamless experience through the air- received as much interest in the past few port terminal could soon be a reality. years as Blockchain. IATA’s One ID project, with face, iris, or Although this ingenious secure pay- fingerprint recognition will provide the ment mechanism came to prominence key. One ID creates a match between a through the recent trading surge in unique biometric characteristic, a passen- cryptocurrencies, it is unquestionably ger’s passport and flight booking. Passen- an invention with immense potential for gers can then proceed through terminal widespread application and one IATA checkpoints, without having to show trav- believes offers benefits for passengers el documents. and airlines. Although a number of African countries Blockchain technology has the ability to and airports are adopting biometric tech- make payments faster and more efficiently and nology and Dubai Airport is pioneering IATA is exploring how it can be adopted. the use of One ID facial recognition to From the moment you search online for a ticket to the improve traffic flows. time of arrival, the airline is just one of around 26 business partners involved in the aviation chain. Every partner in that Airline New Distribution Capability chain takes a profit margin. and ONE Order Apart from reducing the costs, advantages include greater New Distribution Capability will address the gap between how transaction speed, resilience, and protection from fraud, since an airline displays its products and services on its own website, the parties involved in the transaction are no longer relying on versus what it can do in the systems used by most travel agents a single third party as an intermediary. and online travel sites. These are largely based on pre-internet technology dating Remote sensing technology back to the 1970s. They are not capable of easily supporting the To increase passenger comfort and reduce the risk of turbu- rich content you find on websites. lence-related injuries, IATA is developing a turbulence-sharing NDC is closing this gap through the development of XML- information platform containing real-time, turbulence reports based (internet language) data transmission standard for in collaboration with global airlines and remote sensing technol- communications between airlines and travel agents. Consum- ogy to make turbulence avoidance better. ers will benefit from greater transparency and the ability to In total, these new technologies will transform the passenger compare offerings between airlines, as well as to personalise experience. However, government regulation, resistance to their purchase. change and cyber security challenges are issues that threaten ONE Order builds on advances made possible by the NDC. It the speed of development. will result in the gradual disappearance of multiple reservation But, inevitably, the passenger journey of the future will look records associated with a ticket, as well as the e-ticket itself, very different from today. and any other documents for optional services. This will be replaced by a single reference Order, just like you get when you order a product from an online retailer. As a result, travellers will no longer need to juggle between different *Some submissions edited due to space restrictions. Travel Industry Review | April/May 2018 7
ASSOCIATIONS SATSA urges collective action By David Frost, Southern Africa Tourism Services Association CEO THE LAST two years have been phenomenal for inbound tour- These include: the potential benefits of adventure tourism; ism, with overseas arrivals growing 18 percent in 2016 alone. compliance around animal interactions and using that as a Have we done anything differently, that we can directly link to positive marketing tool; and dealing decisively with safety and that growth? The answer is no. We still have obstacles that are security issues. self-inflicted, for example unabridged birth certificates, visa Adventure tourism is one of our underrated hidden gems. regulations, and vehicle licensing. The percentage of 2016 arrivals from our key source markets in In 2017, overseas arrivals slowed to seven percent. Even more Europe and North America between 18 and 34 average at 39 per- concerning is when we segment the growth by quarter, the cent, the generation keenest on bungee jumping, sky-diving and seven percent growth has all occurred in the first six months. hot air ballooning. We need to unlock the immense offering we The second half of the year shows growth of 4.5 percent and key have and position South Africa as a sought after adventure des- markets like the UK are now experiencing negative growth. tination, as opposed to tourists coming for a leisure holiday and Added to these are ongoing issues around rate-related chal- happening to include some adventure activities. The great thing lenges with SANParks and Ezemvelo Wildlife. The one percent about adventure tourism is that most of it happens outside of increase in VAT has brought its own issues, [such as] how this bigger cities. It is rural, immersive; and it is job creation. extra cost is absorbed through the traditional channel. Added We also need to raise the profile of the importance of tourism to these, the water crisis, listeria, and the land issue have given in the economy. The good news is that we have a minister who rise to perception issues. The danger is that collectively these listens and a great crowd at South African Tourism. The private issues may result in South Africa being seen as a destination sector relationship with SAT needs to be taken to a level where that is difficult to do business with. Operators in key outbound private sector input is sought at the inception of market strate- markets may even shift their resources to competitor destina- gy development. tions. The SATSA conference takes place in Port Elizabeth from It is then incumbent on us as the tourism collective – both July 23 – 25, and the theme is ‘Transforming Geographical the private and public sector – to get back onto a competitive Spread’. The association urges input on any suggested panel footing. This entails dealing decisively with the ‘own goals’ and discussion topics and speakers so that we can continue being taking advantage of key opportunities that remain untapped. proactive in the interests of our industry. 43086/TIR/R1 fastjet flight inventory NOW AVAILABLE ON TRAVELPORT GALILEO for everyone
Supporting you towards PCI DSS compliance MARCH 01 2018 DEADLINE The PCI DSS deadline is fast approaching Are you ready? Any IATA agent that accepts credit card transactions against its own merchant agreement or issues Billing and Settlement Plan (BSP) card transactions will fall under the PCI DSS compliance obligations. Compliance requirements differ from agency to agency and are determined by several factors including the financial institution, card brand, size of the business and number of transactions. Travelport is serious about data security, so to help facilitate your continued compliance we can assist you towards PCI DSS compliance from a GDS point of view, the agency is responsible for their own compliance in respect of their business processes.. Should you require assistance with the overall process we have partnered with SecurityMetrics a leading provider and innovator in data security and compliance for organizations worldwide. Find out more at travelport.com/pcidsscompliance
NEWS ASATA plans innovation summit Research for ASATA’s first Travel Index market study was concluded in March, THE ASSOCIATION of Southern African Topics included in the innovation summit which will determine the size Travel Agents has cancelled its annual member will focus on changes in distribution and the and state of South Africa’s conference in favour of an innovation summit. sourcing of content. travel sector. Results are The event will now be held in the second half Chief Executive Officer Otto de Vries com- still expected. Retailers have of the year, most likely September, in Johan- mented: “We are hoping to share a bit of an for years called for reliable nesburg. idea about where the world is going. We are data showing the size and The member conference was originally living in the golden age of travel. Never before potential of the market and scheduled to coincide with World Travel Mar- have so many people chosen to travel and that the number of corporate and ket Africa in Cape Town this month. number is growing.” leisure trips taken annually. IATA agencies worldwide affected by PCI DSS compliance TRAVEL agencies ticketing through BSP, must be able to prove PCI DSS compliance or risk having their customer card pay- ment method suspended. The International Air Transport Association has provided agencies with a PCI DSS wizard to assist with step-by-step instructions. Travelport and Forgenix also have self-assessment tools available. ASATA said there were approximately 60,000 IATA agencies worldwide which are subject to the new rules. E Preferred Hotels & Resorts CEO Lindsey Ueberroth and At a recent regional meeting in the Western Cape, ASATA Executive Vice President Saurabh Rai visited the Boschen- Chief Executive Officer Otto de Vries commented: “I think dal Farm Estate near Cape Town, one of its local properties, IATA wants to see us all working towards compliance. Don’t during a nine-city tour to mark the group’s 50-year anniver- drop the ball… [and] don’t send emails with credit card details. sary. There is a year-long campaign to mark the anniversary It is not only PCI DSS but POPI (the Protection of Personal and expand the group’s profile in the South African travel Information Act) that is going to be expected of you by law.” trade. Preferred is to add more properties in Africa. Johan- Travel agents will have less than one year to comply with POPI nesburg is a priority market. requirements once that Act has been signed. Airlink suspends ASATA to relaunch Eurowings PTA – CPT Young Professionals won’t be AIRLINK will keep its Preto- ria – Cape Town route, to be THE ASSOCIATION of Southern African Travel Agents plans back suspended on May 8, under to revive its Young Professionals in Travel Programme before review. the end of the year. It will focus on ongoing skills development The airline blamed oper- and target Travel Management Company employees under the EUROWINGS’ Cape age of 35. Town – Cologne service ational constraints and the poor state of the economy for Networking events will keep young industry associates “ex- will be suspended in cited about a future in the travel industry”, said Monique Diez, October, at the end of the suspension and said losses were compounded by cut- who will be running the programme for ASATA. the European summer “The key focuses will be transformation and personal growth, season. backs in government travel. which also supports ASATA’s training strategy. Transformation One weekly flight to in middle to senior management is vital and members will gain and from Cape Town WTM Africa value…” was introduced for the first time in October last adds investors’ ASATA is also in the process of registering its first qualified Travel Practitioners, part of the ASATA Professional Pro- year. Eurowings also forum gramme, which is a broader campaign to promote professional- ism and continuous skills development. currently operates into WTM Africa introduced a A Travel Professional (TProf) designation will be open for Namibia. Tourism Investors’ Forum registration in due course. ASATA said it would work with this month in Cape Town, to members to develop a supporting curriculum for a third desig- explore growth opportunities nation, Certified Travel Professional (Cert. TProf), which will for tourism. also include an assessment. 10 Travel Industry Review | April/May 2018
gallery E World Leisure Holidays Sales Manager Lesley Smith took E Silversea’s Silver Cloud, in its first season since being top eTravel consultants on a Mauritius educational. Pic- converted as an expedition ship, recently stopped in Cape tured (l to r) with Bobbi Ghoora from Shanti Maurice: Joanna Town after completing the Antarctic leg of its current voy- Hutchison, Tidal Travel; Annolet Eybers, Travelexec; Jenni- age. Conrad Combrink, Silversea Cruises Senior Vice Presi- fer Kutlu; JMC Travel; Isobel Siegel, Bel Aire Travel; Melenie dent Strategic Development Expeditions and Experiences, Sansovini, EQ Travel; Kim Muller, Focus on Travel; Julia said bookings or its first expedition voyages had exceeded Dijkhuis, MD Travel; Alison Van Niekerk, Essential Travel and expectations and 75 percent of passengers were first-time Sandra Meyer, Time2Travel. clients, “illustrating the level of demand for a proper luxury expedition experience”. Silversea now has four expedition H The Club Travel Group ships and, after the success of the Silver Cloud’s conversion, launched a new version of Mr. Combrink said it is considering converting its Silver its Ourweb intranet. Users Wind to ice class for expeditions. Pictured onboard: Michelle can interact by rating, com- Bergset, Area Leader Flight Centre Travel Group; Sean Hough, menting and bookmarking leisure travel specialist; Gaynor Neill, Cruise Vacations; Vicky articles and webinars. Spot- Steinhardt, Product Manager, Pentravel and Chad Le Hello- prize winners on launch day co, Creative Director, The Hello Co. included Senior Ticketing Consultant Nqabakazi Simelela, pictured left. F A group of local travel agents visited all Beachcomber Mauritius resorts during a recent educational. Pictured: Le- mencia (Katja) van Niekerk, Pentravel Clearwater; Fernanda Maria Linder-Haber, Flight Specials Welkom; Wildi Smit, Pro- F Pictured at the Radisson Blu Granger Bay in Cape Town, corp Travel and Tours; Shandri Viljoen, XL The Travel Profes- Jackie Adami (left) and Jane Davidson from Development sionals; Vladi Wessels, Beachcomber Tours; Anel Mammoszer Promotions with Nick Wilkinson, Norwegian Cruise Line VP (van Schalkwyk), XL Flight Specials Centurion; Maria Cristina and Managing Director UK & Ireland, MEA. Mr. Wilkinson Singleton, Travel2U; Lize-Marie Greyvenstein, Flight Centre hosted 100 travel agents at Gate 69, with a focus on the Associates; Lee Swan, Flight Centre Associates and Deborah line’s new ship, Norwegian Bliss and ‘floating resort’ prod- Smith, Vacation Station. uct concept. See page 21 for details. F At Air Mauritius’ recent year-end awards evening, Flight Centre Travel Group was named Top Market Share Partner and Beachcomber Tours Top Performer overall. Pictured (l to r): Wouter Nel, Air Mauritius Sales & Marketing Manager with Vito Polo, Carolyn Dreyer and Silvana Polo, Beach- comber Tours; Shiv Koonjoo, Air Mauritius; Enid Maullin; Joanne Visagie and Pete Munro with (front) Terry Munro and Ettienne Walters, Beachcomber Tours and Carla Da Silva, Air Mauritius. Travel Industry Review | April/May 2018 11
AIRLINES Virgin prioritises Johannesburg route Capitalising on SAA’s cutbacks, Virgin says South Africa is ‘flush with opportunity’ by Sarah Cornwell WITH an increased schedule from South Africa and an increase duction], it gave us a chance to revisit the route,” Ms. Gericke in premium cabin capacity, Virgin Atlantic is to grow connect- said. ing business over London. The trade is key to making that Arriving at 05h40 local time, the additional service will be the strategy work, through corporate business and new economy first Heathrow flight to land each morning “making it perfect ticket categories geared for the leisure market. In terms of its for business travellers or those with onward connections to the size, Virgin puts more of its resources into South Africa than rest of South Africa and greater Africa”. Flights to London have any other major international airline. been timed to enable customers to easily connect onto flights A second daily service between Johannesburg and London with Virgin Atlantic and Delta to over 200 US destinations. Heathrow will be added from October, operated by an addition- New York is rated the most popular connecting destination al Boeing 787-9 aircraft. It will mean 188,000 more seats on the out of Heathrow, with a flight every two hours, and there are route each year. other good connections to the US East Coast. Virgin also sees Liezl Gericke, Head of Middle East & Africa for Virgin Atlan- opportunity to grow connecting business to Edinburgh and tic, said there was already not enough capacity in Upper Class Aberdeen. to meet demand. ACSA’s Chief Operating Officer, Fundi Sithebe, commented: “The reality is, South Africa is a market that is doing very, “OR Tambo International Airport... stands to benefit from very well for the business. Just considering what is happening these additional seats at such a critical moment where airlines in our country at this moment in time, we feel extremely excit- are looking at capacity rationalisation as global oil prices are ed about what is to come. Business confidence is looking very surging. strong… The [increase] is hugely meaningful. This is the only “Moreover, with over a third of North American travellers route in the world that we have a double service.” connecting through European gateways to/from Southern Afri- There are also three new ticket types in economy: Economy ca, the additional flight will enhance Virgin Atlantic’s transat- Light, Economy Classic and Economy Delight. lantic connectivity and attractiveness with its partners.” The new flights will offer 36 Economy Delight seats on each By the end of this year, Virgin will operate a fleet of 13 Boeing service, with priority check-in and boarding, free seat selection 787-9 aircraft, including the two to South Africa and four new and 34-inch extra legroom seats. A330-200s have been acquired for expansion. Virgin has leased its second slot from South African Airways, “The only new route is technically Johannesburg, but we are which reduced frequencies in a bid to stem losses earlier in the repositioning aircraft on other routes… ramping up service to year. other cities”. However, new international routes are “always, “We have actually capitalised… When SAA announced its [re- always in planning”. 12 Travel Industry Review | April/May 2018
airlines E Virgin Atlantic has introduced three new economy ticket E There will be 36 Economy Delight seats on each service, types: Economy Light, Economy Classic and Economy Delight, with priority check-in and boarding, free seat selection and in line with customer preferences. 34-inch extra legroom seats. New service will boost connections VIRGIN Atlantic’s double-daily schedule will cater for demand Along with the new economy ticket types, Premium Economy and boost connecting business across London, but there is also has been rebranded Premium. The cabin features a different untapped opportunity for through business from other parts of seat, recline and separate meal service. the region. Volumes out of Johannesburg and Dubai are boosted by Liezl Gericke, recently promoted to Head of Middle East & behind traffic but there are several Africa, said the airline would work directly with TMCs to fill SADC countries on the airline’s the extra seats but “Johannesburg to London fills… very quick- radar. ly. Having an additional flight will give us far more through- “Zimbabwe does well fare opportunities. Any other regional opportunities we have for us, Zambia, Malawi… seen, we haven’t been able to take… Think of all of the beyond Namibia is an opportunity points.” market for us. Through Ms. Gericke explained Johannesburg was consistently one traffic is difficult for of the airline’s top-performers. “And that’s on the entire Lagos [as] the airport network… We are not saying it is going to be easy to sell two is limited and can’t take aircraft; but we feel very confident.” transit traffic.” “The Johannesburg route never runs at less than 90 percent capacity, and that’s all cabins. By aviation standards, that is a little bit unheard of.” Liezl Gericke “At the moment, the Johannesburg route never runs at less than 90 percent capacity; and that’s all cabins. By aviation standards, that is a little bit unheard of. We simply don’t have enough seats for our TMC and corporate customers, and that is both ways, inbound and outbound.” Virgin’s new economy products and WiFi roll-out, now avail- able fleet-wide, is part of a £300-million investment programme and product strategy. “Each market is quite unique. Nigeria is a very, very, very strong performing market for us but it is a complicated trading environment… [Problems with] repatriation of funds is rearing its head in certain markets.” A return to Cape Town was being assessed on an ongoing basis, she said. “Johannesburg is quite opportunistic. It is a market we love and are deeply passionate about.” Travel Industry Review | April/May 2018 13
destination Affordable fares boost South America LATAM has extended its South Africa schedule to five weekly the opportunity to stop over en route, particularly in Istanbul. flights between Johannesburg and São Paulo throughout the Rio and Buenos Aires are top sellers for leisure and São Paulo winter season, adding more capacity and affordable fares. for VFR and business travel. The airline has connections to 120 destinations in Latin He said more destination awareness, particularly from tourist America and its re-entry into boards, would help retail South Africa has revived tour- businesses sell more of South ism to South America. America. Wally Gaynor, Club Trav- Leisure and adventure el Managing Director said travellers are a target market, LATAM “lessened the impact” while inbound business to of South African Airways’ South Africa stands to benefit. decision to drop capacity on Brazilians, for example, its double-daily service. spent US$2-billion on trips “What LATAM really did… overseas in January 2018, an because of their network and increase of 26 percent. reputation in Brazil/South Trafalgar has a 12-day America, was put South “comprehensive exploration Africa on the map and front of all things South America” of mind for travellers in South package, visiting Rio de Janei- America as a destination [and] ro, Iguassu Falls, Buenos Aires what has really had an impact and Santiago. on travellers to and from South America Samba, Cape Town in particular, is a CostSaver tour, is from the excellent fares and quick R20,644 and visits Rio de connections offered by TAAG Janeiro, Buenos Aires and Angolan Airlines, to/from Iguassu Falls. Cape Town/Johannesburg to Trafalgar’s Monkeys, São Paulo…” Jungles and Volcanoes, is He said business to South E Argentina was part of LATAM Airlines’ recent Destination an eight-day package, from America had grown “mainly of the Month campaign. The airline partnered with the Ar- R24,605. because of affordable fares” gentine Tourist Board, offering discounts on regional flights. A Young Travellers Dis- and on long routes via Ethi- LATAM will operate five flights per week between Johan- count of up to 10 percent is opia, Turkey and the Gulf, nesburg and São Paulo this winter. Pictured above: Iguassu available, as well as an Early AF thompson-213x118_21032018.pdf 1 21/3/18 16:22 because of available fares and Falls, in Argentina. Payment Discount. Together, further. The best choice for flights to, from and throughout Latin America. Five weekly direct flights from Johannesburg to São Paulo. More than 120 destinations in Latin America. The most extensive network in the region.
WHOLESALE Thompsons Holidays hits 40-year milestone by Joanne Adolphe, Thompsons Holidays CEO THOMPSONS Holidays is celebrating 40 years of service to the travel industry on a high note. From small beginnings as a ‘basement shop’, to an industry employing hundreds, Thompsons has grown into a multi-faceted wholesaler. We sell the world – but not just anything. As travel spe- cialists, Thompsons seeks out the best. It’s all about the people Our product and contracting teams are always on the hunt for enticing hotels and resorts and excursions, at affordable prices. Reservations teams are trained locally and on-site to ensure they are able to offer agents up-to-date information. Similarly, agents are invited on Thompsons Universities educationals to experience the destination. Refocus and looking ahead We are always looking ahead and refocusing to ensure we are E Pictured at Thompsons’ 40th anniversary awards evening, proactive, up to date with new trends and the first to offer from left: Vanessa de Stefano, General Manager Reserva- clients the latest products. tions; Michael Tollman, Chief Executive Officer, Cullinan Holdings; Kuben Moodley, Top Independent Reservations Online and social media Consultant and Joanne Adolphe, Chief Executive Officer, Easiclick, our online portal, gives agents direct access to our Thompsons Holidays. South Africa, Victoria Falls and Mauritius products with in- stant availability and prices. This is especially valuable for ITC agents who work random hours. Daily updates on social media also keep wannabe travellers in the loop. IT’S MORE THAN CRUSING… Looking back The travel industry has had a tough time since the downturn of IT’S EXPERIENCING The best way to offer your clients the world... 2008, but we have found innovative ways to keep prices attrac- tive and help agents close sales. Despite a punishing exchange rate, Thompsons ended the financial year on a high note with great results - a fitting birthday gift from the travel trade. New developments Thompsons Holidays is now fully PCI DSS-compliant, which reassures agents booking with us. www.cruise-vacations.co.za ® Ocean, Expedition and River Cruises with itineraries that cover the globe. E Pictured above, from left: Angela Wood, General Manager Sales; Kirsty Knott, Top Sales Executive (joint); Michael Toll- 011 514 0564 man; Given Mashaya, Top Sales Executive (joint) and Joanne Adolphe. Travel Industry Review | April/May 2018 15 TIR AD 102X149 Mozi.indd 1 2018/03/29 11:35 AM
seychelles Constance Lemuria on Praslin. Seychelles campaign paying dividends by Sarah Cornwell AS LOCAL travel agents possible via Ethiopian Airlines Park, Product Manager, The Jade Crocket, representa- become more familiar with and, now, for the onward trav- Holiday Factory. tive for Constance Hotels Seychelles through a concert- eller, British Airways. “The flying time between and Resorts said: “The top ed trade marketing campaign Praslin is a short air or boat Mahé and Praslin is around 15 selling resort for the South and the islands shake off their transfer from Mahé and home minutes. If they are visiting African market is Constance exclusively pricey image, to one of two Contance Hotels any other island and are Ephelia… two main beach- visitor numbers from South and Resorts properties, the planning on going straight es, five restaurants, on-site Africa are steadily increasing Constance Lemuria (Ephelia there, they have to overnight adventure activities, such as and the islands’ suppliers are is on Mahé). Paradise Sun is on Mahé, as the only flights zip-lining, abseiling and kay- showing growing interest in a popular four-star option that operate late are those be- aking through the mangrove this market, backed up by on Praslin, good value and tween Mahé and Praslin. The forests… very spacious junior local tour wholesalers here. superb location. ferry service also does not suites and family villas, to 115 islands make up Sey- An overnight on Mahé is operate at night. The same ap- hilltop villas overlooking the chelles, each different, some not necessary if customers plies for the morning return north beach. still totally uninhabited, but are booked to stay on Praslin, flight back to South Africa. “Constance Lemuria is rated most visitors and packaged however, accommodation is You can connect from Praslin among the Leading Hotels of breaks set off from Mahé. needed for outlying islands. but if staying on any other the World [and] personifies Non-stop flights operated by “If guests are going to island – with the exception the island of Praslin with its Air Seychelles are preferred Praslin, they can connect on of Cerf and Silhouette – you protected forests and hidden but alternative routings are arrival,” explained Margaret need to return to Mahé the beaches. The resort is the night before,” said Ms. Park. home of the only 18-hole “Fortunately Mahé has a championship golf course in BEST BUYS good variety of hotels from five-star to simple accom- the Seychelles and one of the most beautiful in the world…” World Leisure Holidays has seven nights at Paradise Sun modation for the one night,” She maintained: “The Sey- (half board) from R32,650, valid May 2 – June 22, 2018. Seven added Melanie Floor, Exclu- chelles tends to be higher in nights half board at AVANI Barbarons is from R26,850. Both sive Serenity, representative price than Mauritius, but once include flights, transfers and approximate taxes. for Frégate Island Private. a travel agent sees and under- There is still growth poten- stands the destination, they The Holiday Factory has seven nights at AVANI from R19,060, tial to book more twin-stay will be able to sell it more. with a 35 percent early bird special. Valid September 1 – Oc- packages, which take in two It is a true value-for-money tober 31. Includes flights, breakfast daily, accommodation or more islands, although, destination.” in a standard room and return resort transfers. currently, stays of five to sev- The Seychelles Tourism en nights are requested most. Board’s annual product road- Seyunique has seven nights at Paradise Sun, including din- “With the possibility of is- show will be held in Johannes- ner and breakfast daily, taxes, and transfers, from R56,869 land hopping, Seychelles also burg on July 17; Durban July for two adults sharing. offers a great variety for those 18 and Cape Town July 19. who want to explore different The islands experienced a Thompsons Holidays has seven nights at Paradise Sun from islands... something that not 17 percent increase in arrivals R28,552, including breakfast and dinner daily, bonus added a lot of other Indian Island from South Africa last year value and flights and transfers. Valid April 9 – June 19. Ref- destinations can offer,” Ms. and more growth is forecast erence: TH1936310. Floor commented. in 2018. 16 Travel Industry Review | April/May 2018
report Lufthansa answers critics with Direct Connect Tourvest Travel Services is first SA retailer to plug in by Sarah Cornwell RETAIL groups will need to be convinced of real shared ben- African corporate and public sector travel bookers.” efits before direct connect distribution agreements become Other South African retailers are pursuing similar projects commonplace in this market but Lufthansa Group’s first deal and Lufthansa said it would provide costs and technical re- with Tourvest has illustrated a desire for personalised deals and quirements to potential partners. exclusive offers. The airline was subject to widespread criticism and threats by Tourvest was the first TMC in South Africa to establish a retailers to offsell when its €16 distribution surcharge was in- Direct Connection with the Lufthansa Group in March, and troduced in 2015 but Direct Connect partnerships evolved from TravelIT, Tourvest’s online technology platform, is the first B2B discussions with retailers to create a new middle ground. online travel management platform to complete the full end-to- Dr. Schulz claimed the digitalisation strategy and “content end Direct Connect integration. freedom” benefitted all parties. The agreement circumvents a €16 distribution surcharge for He said Direct Connect partnerships might require advanced GDS and non-NDC enabled bookings for the German group’s technology but “Tourvest comes with a solution that fits in very airlines, Lufthansa, SWISS, Austrian Airlines and Brussels Air- nicely with the requirements… I would guess that they are not H Through the Direct Connect partnership, TTS customers will see more inventory and special Lufthansa Group deals. Pictured (from left): Morné du Preez, Tourvest Travel Services CEO; An- dré Schulz, Lufthansa Group GM Southern Africa and Philip Katz, TravelIT CEO. lines and provides access to exclusive offers and inventory. the last. It is an important signal. This is not only a global topic; Tourvest Travel Services Chief Executive Officer Morné du it has reached South Africa.” Preez said that created a compelling competitive advantage. “The biggest complexity for me is the more sources I have got “In the future TMCs will be able to access specific sales to go to [to book] the more time consuming it is going to be. promotions or discounted ancillary products via the Direct Once we hit Europe, there are hundreds of flight options… We Connect distribution channel to offer onto their clients,” are back in an age of very human intensive way of doing things. explained Lufthansa Group General Manager Southern Africa Through our travel technology, it is right there in front of me,” André Schulz. commented Mr. Du Preez, “… but I’m not going to do this for IATA’s NDC is at the centre of the carrier’s distribution strat- every single supplier.” egy and he said differentiated offers would be developed in line He maintained: “It is a partnership. Ultimately, the extent of with customer preferences. the partnership is going to be what the result is: what we are Philip Katz, CEO of TravelIT commented: “By offering our able to sell our customer... We want those sorts of partners, customers direct booking access into a major international who see South Africa as a value market.” airline group, we are now able to offer a wider range of flight Mr. Kalitz said: “South Africa is able to compete with levels options to customers at a reduced price. This forms part of a globally. The service delivered here is the same as what’s being long-term strategy… to use technology to shorten the supply delivered worldwide.” chain and reduce the cost of travel for our 300,000-plus South “If not better and faster,” Mr. Du Preez maintained. “This forms part of a long-term strategy to use technology to shorten the supply chain and reduce the cost of travel…” – Philip Katz, TravelIT 18 Travel Industry Review | April/May 2018
training Training is key to growth by Craig Reid, Group Chief Executive Officer, Fuel Online WHAT does it mean to be clear, consistent and sus- ment changes; competitive? To have an tained message. High staff B Ongoing updates on gov- advantage? Is it the quality turnover, scarce experienced ernment skills development of the product you repre- staff and an ever more diverse requirements; sent? Through the discount audience means that creating B Time, travel, accommoda- you can tolerate? The expo- consistent performance is tion, printing, food and venue sure you are able to garnish? increasingly difficult. costs to reach all retailers And why do some compa- Being able to solve this chal- regularly enough to effect and suppliers can cost effec- nies out-perform others by lenge is only half the puzzle. change; tively, secure commitment 300 percent? How is it that Once people are complete- B High staff turnover; and loyalty, develop skills and in a stable market, selling the ly aligned to the goals of an B Frequent product changes; drive the ability to earn more, same products, we are forced organisation, there is a need B Legislative changes re- they will claim a bigger share to slash earnings to differenti- ate ourselves? Fuel Online, South Africa’s premier online training provider is offering all TIR The only true differentiator readers a 15 percent discount off all of its retail, sales and customer service a travel agent is able to offer titles, as well as 25 percent off all of its critical life-skills titles in order to is a memorable, hassle-free make them available to even the smallest businesses. experience. Capturing hearts and minds is the single big- to ensure they are actually quiring ongoing training and of the market. gest differentiator and is the able to execute the tasks communication to everyone, Leveraging technology to focus of this column. required effectively and all the time; achieve this has been the Front line consultants efficiently. If they are unable B Training material is always cornerstone of all Fortune sell the value able to be to, business falls short. Capa- out of date, inconsistent or 500 companies. Fortunately, captured from the millions of bility is the driver. sporadic. using new technology for rands of advertising and mar- Being capable of extracting South Africa’s travel in- consultants to learn and for keting invested by suppliers value is the means of growing dustry is highly competitive companies to reach staff and and their own retail organi- revenue – regardless of mar- and price sensitive but it is independents on a cost effec- sations. Vast sums are spent ket conditions. If businesses a lucrative market. The only tive basis is now possible. to mine this opportunity but are more capable than their question is how much market ultimately rely on two prima- competitors, they prevail. share each business and con- * Fuel has built online ry factors: consultants need to Challenges shared with sultant is able to secure. training academies for want to achieve and need to competitors, including suppli- The most effective vehicles Toyota, GM, Sanlam, En- gen, Coronation, Shoprite have the capabilities required ers, are: for reaching the market are af- and Mercedes Benz. For to extract as much value as is B Internal expertise to drive finity to a brand and product more information call: available. alignment and capability; and the capability to capital- 087 351 5222 In retail, success requires a B Ongoing BBEEE require- ise on marketing. If agencies Congratulations to Jenny Voigt from The Travel Chain in George, who was spotted with her TIR at the cave town of Matera in Italy. Jenny wins an American Tourister Soundbox 55cm Spinner valued at R2,299! With TIR One look at American Tourister’s Soundbox range of luggage makes you feel like travelling around the world! Soundbox is the brand’s first expandable hardside zipped case, offering maximal space and comfort, offering a variety of special features to make your trip even more legendary: integrated TSA lock, expandable, and with cross ribbons on the top and bottom com- partment. The fine matt texture offers more resistance against scratches, ensuring minimal stress and maximal fun. Your American Tourister Soundbox suitcase will be the eye-catcher of the luggage belt. Available from leading luggage stores nationwide or online from www.houseofsamsonite.co.za Email photo entries to: dominic@tir.co.za Travel Industry Review | April/May 2018 19
product update SINGAPORE AIRLINES BOOSTS SOUTH AFRICA SCHEDULE SINGAPORE Airlines has in Singapore the following day supplemented its daily Johan- at 12h20. SQ 482 will depart nesburg schedule with addi- SIN at 14h00, arriving in JNB tional flights on a Wednesday, the same day, at 18h40. Friday and Sunday between The airline has received the July 1 and August 31. first of 49 new Boeing 787-10s A Cape Town service via (pictured) which will be used Johannesburg now operates for flights up to eight hours daily. and is the launch customer for The new flight, SQ 481 will the new aircraft – 20 777-9s BEACHCOMBER HAS KIDS COVERED depart JNB at 19h55, arriving are due in 2021/22. BEACHCOMBER Tours is qualifying children. promoting value-added pack- The specials are in addition NEW TRAVELPORT SOLUTION ages for travel to Mauritius to other current promotions, with children, for travel into which include free lunch for TACKLES AIRLINE FRAUD 2019. the family at Trou aux Biches, TRAVELPORT has partnered purchase air tickets via Trav- Two children under 12 years Paradis and Dinarobin mid- with ACI Worldwide on a new elport connected agents and fly free (pay only airport year and a MRU2,000 food fraud control and settlement the ability to flag and prevent taxes) with free business class and beverage voucher per solution for airline customers ticket issuance. lounge access for the family couple at Trou aux Biches, – Travelport Authorize Plus. Derek Sharp, Senior Vice from April 10 – June 21; July 17 Paradis and Dinarobin, valid The airline industry incurs President and Managing – September 27; October 9 – for seven-night, half-board losses of around US$1-bil- Director of Air Commerce December 7, 2018 and January stays. lion per year due to fraud, at Travelport, said another 9 – March 12, 2019. Save 20 percent on land based on calculations by the major advantage was that the Valid May 1 – October 8, up packages with 60-day advance International Air Transport solution meant fraud control to two children under 18 years bookings. A 10 percent sav- Association. management could be applied of age stay free when sharing ings applies for land pack- The new solution offers without airlines or agent with parents at select resorts. ages of 12 nights and repeat real-time protection, detailed, customers having to do any Breakfast, dinner and all-in- customers qualify for an online reports, fraud screen- major development or change clusive meal options is free for additional five percent. ing of card payments used to workflow processes. QANTAS FIRST COSMOS ADDS TIMELESS JAPAN OZ–UK NON-STOP COSMOS Holidays has added commodation. a 10-day Timeless Japan tour Cost is from R51,770 and QANTAS has started a new to its 2018 programme. The includes sightseeing, guide, Perth to London service – the itinerary features various transport in private coach, only non-stop link between UNESCO World Heritage train from Mount Fuji area to Australia and Europe and the sites and popular Japanese Kyoto, daily breakfast and one fastest connection between gardens, with authentic ac- lunch. the two continents. G Pictured below: QF9 Perth SILVERSEA LAUNCHES 2020 WORLD CRUISE to London. SILVERSEA’s World Cruise Packages include round-trip F Pictured right: In 1947, the 2020, visits 32 countries and business air travel. Suites Lockheed Constellation was all seven continents, operated from US$62,000 pp. the first aircraft to operate by Silver Whisper, leaving Gaynor Neill, General Man- the Kangaroo Route, a jour- Fort Lauderdale on January 6, ager of GSA Cruise Vacations ney which took four days. 2020. It is the first time any said: “The first South African world cruise calls at every passengers have just con- continent. firmed their place…” AVALON LAUNCHES 2019 PROGRAMME AVALON Waterways has underground wine tasting and added six new itineraries in a canoe trip through Gorges Asia and Europe for 2019, as de l’Ardèche, and a 13-day well as new all-suite ships Colourful India & the Ganges and more flexible booking River option, from Delhi to categories. Kolkata. Highlights include an A discount of US$2,500 per eight-day Active Discovery couple on new bookings for on the Rhone itinerary, with travel in 2019. 20 Travel Industry Review | April/May 2018
report Norwegian sees major SA growth SA is a focus market and second worldwide for incentives bookings, MICE ‘massive’ NORWEGIAN Cruise Line recorded triple digit growth in the South African market in 2017 and Nick Wilson, Vice President and Managing Director UK & Ireland, Middle East and Africa, said the company has forecast similar growth this year “off a high base”. E Norwegian Bliss innovations and highlights include The line’s newest ship, the 4,000-passenger Norwegian Bliss, new dining options, the longest racetrack at sea, open- will debut this month. It will sail to Alaska, the Caribbean air laser tag, a 180-degree custom observation lounge, and the Mexican Riviera from June. outdoor, alfresco dining on the ship’s promenade and Mr. Wilkinson claimed: “Our competition is the land-based headline shows including Jersey Boys. resorts… ‘Norwegian Mauritius’; that’s who our competition is.” South Africa is the third biggest producer of multi-gener- gering… massive”. ational business and second in the world for incentives. He Norwegian also recently took the step to extend its reach described the incentives market and the MICE sector as “stag- in neighbouring countries, with its first Namibia roadshow and sales are also up from Botswana and other neighbouring “Our competition is the land-based countries. Mr. Wilkinson maintained travel agents were “cru- cial” and “a lifeline” for the cruise business with “very clever, resorts… ‘Norwegian Mauritius’; creative marketing techniques” to help agents convert more that’s who our competition is.” – Nick business. Wilkinson * See our June/July issue for a full report on the Norwegian Bliss’ first sailing and onboard highlights for sale.
industry view No room for complacency, even if you have direct flights By Sue Petrie, British Airways Commercial Manager for Southern Africa A TRAVEL colleague told me of a In addition we will be refurbishing our Johannesburg lounge lesson he learnt many years ago at the end of the year, bringing it in line with the existing Gal- when he had booked a trip to leries Lounge in Cape Town. London. It is that sometimes On Johannesburg, there will be all-A380 services this winter, what may seem the best value adding 680 seats a week to London. can be a false economy. And we are not ignoring World Traveller customers. In Janu- Direct services to the United ary we introduced an expanded menu, providing more quantity Kingdom from South Africa, and quantity as well as snack options throughout the flight, a which remains one of our most second meal and complimentary drinks. popular overseas destinations, We are not misled by the conventional wisdom that direct, usually cost a bit more than those overnight services somehow give us an unassailable advantage. that operate via a hub in Africa, the Mid- We are continually investing in products and services and com- dle East or Europe. pete for every sale and work hard to keep every customer. That is because there is more demand for direct services. It In a competitive market, customers can assess the offerings, is quicker, easier and more convenient to fly directly from here weigh these against their requirements and make their choice. to London than it is to break your journey, disembark from one We will do everything we can to ensure that before they make aircraft and catch another. that decision, they have considered the benefits of a direct, The price differential on the route is effectively compensation overnight flight to London, the possibility of a good night’s for this inconvenience. sleep, a quality meal, the value of their time and the relative At face value this makes the indirect route a practical option cost. for people who place a premium on price and less so for those Which brings me back to my colleague. As a struggling stu- who value time and convenience. dent he opted for the cheapest package, which involved routing None of this is new or particularly insightful, but it does via Paris and catching the hovercraft to Dover and then a train sometimes give rise to assumptions that are worth exploring. to London. One of these is that leisure travellers will always gravitate to Besides the saving, he thought crossing the Channel by hov- the best value and business and corporate customers will prefer ercraft would be novel and he would get to see the White Cliffs the direct services. before arriving in London. That is simply not true. The direct carriers on the SA – UK As things turned out, the hovercraft service was cancelled route fight as hard for both markets as their competitors. due to gales in the Channel. This necessitated a night in a cheap It is why we have just introduced upgraded in-flight features Paris hotel, dinner and breakfast, before catching a ferry across on the South African routes. Luxury bedding and new amenity a still rough Channel. kits have been available on our Johannesburg services from Not only did he arrive in London later and poorer than if he the end of February and on Cape Town flights from early had booked the direct fares, but also still distinctly queasy from March. We have also added service enhancements for Club the ferry crossing. World customers. He has always chosen the most direct route since. H BA has introduced an expanded menu for World Traveller customers as well as snack options throughout flights. 22 Travel Industry Review | April/May 2018
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