TRAVEL NEWS WEEKLY

SouTHERN AFRiCA’S TRAVEL NEWS WEEKLYJune 4 2014 I No. 2303IN

SID

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REPORTASATA CONFERENCE 2014

Helps us help you

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natasha tippel

EIGHTY-five percent of travel agents love their job but only 31% are happy

with the salary they’re earning. This was one of the key

findings from TNW’s revealing state-of-the-industry survey, looking at the challenges the industry faces when recruiting and developing young talent. TNW surveyed 462 travel

agents and 50 corporate travel buyers. The survey was split into two groups: Gen Y, which represents participants with 10 years or less work experience, and Gen X, those with 11 years or more work experience.

Only a small percentage of agents said they earned more than R30 000 a month, before deductions. The majority of Gen Y consultants said they earned between R5 001 and R8 000 a month. The majority of the more senior participants said they earned between R20 001 and R30 000.

More than half of the respondents said they loved their job, although the pay was poor compared with other industries (54%). “Right now the salary structure in the industry is shameful. You get people who are qualified and able to work beyond expectations but because

the standards are so low and there is a lack of professional grading, the salaries are not representative of this calibre of consultant,” said one.

Money seems to play a big factor, with many of the Gen Y participants saying their future in travel depended on salary, as they felt the salaries in travel were not adequate to sustain them in the long term.

When it comes to training and skills, the survey revealed that there was little focus – across the board – on sales skills and the ability to profile clients. TNW asked both groups to rate themselves on what their top five strongest skills were. The majority of both groups said their greatest ability was to work under pressure and manage stress (over 70% for both groups).

Travel agents don’t travel. It’s alarming that only 20% of respondents said they were travelling more than once a year. A significant 33% of participants said they never travelled. The majority of respondents of Gen Y said educationals were linked to incentives and rewards, only 23% of Gen X respondents agreed. The majority of Gen X respondents said fam trips were to educate and upskill staff. For more on the survey, see the full report on page 7.

After the presentations and the speakers had spoken, delegates at the Asata Conference 2014, hosted at Arabella Hotel and Spa in Hermanus, let their hair down and partied the night away. Pictured here burning up the dance floor (or is it the smoke machine?) are, from left, back: Guy Muller (Avis), Natalia Rosa (Big Ambitions), Paulo de oliveira (Thompsons Holidays), Chantel Kliche and Rudolph Theunissen (Thompsons Travel). From left, front: Matthew Fubbs (The Holiday Factory), Jane Davidson (Development Promotions), Flora Fubbs (The Holiday Factory), Jackie Adami (Development Promotions) and Alex Granger (business motivational speaker). Photo: Natasha Tippel

Smokin’!

I love my job! But not the pay

Chana BouCher

PAK Africa Aviation, the company planning to acquire 1time Holdings and possibly launch a new carrier using the 1time brand, hopes to beat other new carriers in launching domestic flights in South Africa.

Late last year the company announced plans to launch

local flights using the 1time brand by March 2014, following PAK Africa’s acquisition of a stake in Global Airways (see TNW December 18/25, 2013).

Javed Malik, director of Pak Africa Aviation, says the company is still going through the final audit process of acquiring 1time Holdings. He says the final

listing process is expected to be finalised by June. Javed says the target date to launch flights between Johannesburg and Cape Town as well as between Johannesburg and Harare will be 60 days after the acquisition of 1time Holdings is announced.

When asked about

‘1time’ to pip others to the post?

PEOPLE SURVEYThe future of travel in SA

FEaTuRECAR RENTAL

Brace yourselves for rising costs

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To page 2 To page 16

2 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

NEWS

Phone: (011) 327-4062 Fax: (011) 327-4094 E-mail: tnw@nowmedia.co.za Web: www.nowmedia.co.za Address: Now Media Centre, 32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg. PO Box 55251, Northlands, 2116, South Africa.

TRAVEL NEWS WEEKLY

Published by Travel & Trade Publishing (Pty) Ltd Printed by Juka Printing (Pty) Ltd

www.etnw.co.za

Founding Editors: John H Marsh (1914-1996) Leona Marsh (1923-2003)

EDITORIAL Editor: Natasha Tippel natashat@nowmedia.co.za Features Editor: Michelle Colman michellec@nowmedia.co.za Contributors: Mandy Watson Debbie Badham Hilka Birns Chana Boucher Dorine Reinstein Caro Malherbe Photographer: Shannon Van Zyl Production Editor: Ann Braun

PubLIshER Kate Nathan katen@nowmedia.co.za

GROuP PubLIshER David Marsh davem@nowmedia.co.za

ADVERTIsING Sales: katen@nowmedia.co.za Advertising Co-ordinator: Courtney Canham courtneyc@nowmedia.co.za

PRODuCTION Design Head: Dirk Voorneveld

subsCRIPTIONs Circulation tvlsubs@nowmedia.co.za

Rubes® By Leigh Rubin

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Dorine reinstein

PRESIDENT Jacob Zuma has announced his new cabinet, appointing

veteran, Derek Hanekom, the new Minister of Tourism and former ANC Western Cape premier, Lynne Browne, Minister of Public Enterprises.

The cabinet reshuffle saw former Minister of Public Enterprises, Malusi Gigaba, appointed Minister of Home Affairs. This means that SAA will now have to

answer to the new Minister of Public Enterprises. Lynne was Premier of the Western Cape in 2008 before the ANC lost control of the province in the 2009 elections. Before that, she was Minister for Economic Development and Tourism.

Satsa ceo, David Frost, said: “We are incredibly fortunate to have Derek Hanekom as our new Minister of Tourism. I worked closely with Minister Hanekom when he was Minister of Agriculture in

the 1990s. He will bring a considered and balanced wisdom to the sector and I for one can’t wait to work with him again.”

Derek takes over from Marthinus van Schalkwyk, who lost his position in government at a time when international foreign arrivals to South Africa reached their highest levels ever. Marthinus welcomed the new Minister of Tourism, saying: “I will ensure that a smooth and seamless handover and transition take place.”

New SA ministers appointed

ASATA launched its Young Professionals in Travel (YPT) programme at the Asata Conference 2014 – a free programme for members under the age of 40. The programme is open to all travel trade, whether they are a consultant or a supplier.

Dorcas Dlamini, Protea Hotel’s group sales director, who won the award for ‘Tomorrow’s Leader’ at the Asata Diners Club Awards earlier this year, is on the committee and will lead the new chapter.

“The aim of this programme is to give young professionals a place to

engage and participate with one another and the industry at large, including leaders in the industry who can mentor them.”

Travel professionals who would like to get involved in Asata’s YPT programme can contact Jacqui McKnight for more information at Jacqui@asata.co.za.

Calling young professionals...From page 1

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4 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

RepoRt AsAtA ConfeRenCe 2014

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Help us help you

ASATA has called on its members to stand united, get involved, and

collaborate in order to help the association tackle and overcome challenges faced by the SA travel industry.

Just under 200 Asata members gathered at this year’s Asata congress, hosted at the Arabella Hotel and Spa in Hermanus, to share ideas, network, and learn from speakers and their peers.

Claude Vankeirsbilck, who is in his third term as president of Asata, opened congress by reflecting on the milestones Asata has achieved over the

past few years, including an overhaul of how Asata is funded, which has improved the association’s financial standing and resources, and the continued growth of Asata’s presence and voice in the industry.

The focus of this year’s conference, he said, was to inspire collaboration. “Although we compete, we need to collaborate to ultimately improve Asata’s and the travel industry’s value proposition.”

Ceo of Asata, Otto de Vries, agreed, saying its focus over the next year would be to grow consumer awareness about

the benefits of using an Asata member. “We need to address the negative image the public has of travel agents. No one retailer can do this. It requires a unified effort,” he said.

“The industry needs to stand behind Asata, not only ask what Asata can do for its members but what its members can do for the association and the travel industry at large.”

He added: “This has become a consumer-driven industry. Customers are savvy. The industry needs to adapt, offer more value and more options before and after the sale.”

Iata updateIATA is working closely with Asata and the APJC on the financial criteria and introduction of service enhancement products in the South African market, including a default insurance programme.

Iata’s newly appointed area manager for Southern Africa and the chairperson of the APJC, Janaurieu D’Sa, said a new Industry Settlement Systems (ISS) guide and customer portal were being developed to provide agents with key

touch points and processes, as well as updated info, on settlement systems.

He also said the default insurance programme for the SA market was currently under review. “The initial evaluation was sent through to Amman in April. BSP stats have been submitted. Once full documentation has been submitted and reviewed, the product evaluation will take 60 days to approve,” Jan said.

For more on this story see next week’s issue of TNW.

Off to the watering hole. From left: George Harb (Travelport), Tammy Hunt (eTravel), Martin Lydall (Europcar), Matthew Fubbs (The Holiday Factory), and Garth Wolff (eTravel).

Hello boys! From left: Chris Zweigenthal (Aasa), Janaurieu D’Sa (Iata), and Clifford Ross (City Lodge).

From left: Debbie Ashton and Leáne Walters (Diners Club) and Otto de Vries (Asata).

From left: Vanessa De Stefano (Thompsons Holidays), Laurette Haynes (XL Aloe Travel), Vanya Lessing (Sure Travel) and Joanne Adolphe (Thompsons Holidays).

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RepoRt AsAtA ConfeRenCe 2014

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Upskilling the industryTHE Asata Professional Programme is making strides, working closely with the South African Qualifications Authority (SAQA) to revise and develop the curriculum for travel professionals and, in time, establishing it as a designation through board exams.

“We no longer should be speaking about junior, intermediate or senior travel consultants but rather travel professionals and specialists,” said project

leader, Jacqui McKnight. “The basics are still the same but agents need to be upskilled all the time as operational matters are changing.”

Jacqui added that a serious qualification would give Asata members an edge. “It is an opportunity for Asata members to be awarded a professional status and be the brand the customer trusts.”

Jacqui warned that a stalling point in the development could be a

lack of consensus from the industry on designations and she appealed to members to provide the association with feedback on the initiative. She added that, if all went well, Asata could be recognised as a professional body by SAQA by the end of the year.

Asata unveils its ‘Brand Toolkit’IN AN interactive session with delegates, Asata revealed some of its ideas to develop a marketing kit for its members that will help them in their electronic and offline communication initiatives.

This was presented by Natalia Rosa of Big Ambitions, who is working with Asata on its communication strategy in

association with Lloyd Orr.Asata is in the process of

developing creative collateral, developed for both leisure and corporate consultants, which members can use in their marketing campaigns to educate the public on why the world needs travel professionals. The online material can be used by members on their websites,

e-newsletters, social media and media banners. Members will be given raw files that agencies can co-brand and adapt to suit their advertising campaigns.

Offline creative includes posters and other hard copy collateral that members can display in their offices for clients to see, advertising that they are an Asata member.

Next week!For more on Asata Conference 2014, see next week’s issue of TNW.

All dressed up in their Afro-chic outfits are (from left): Joanne Visagie (Beachcomber Tours) and Shariefa Allie-Nieftagodien (XL Nexus Travel). Photos: Kate Nathan and Natasha Tippel

Spotted at the SAA evening function hosted at La Vierge restaurant in Hermanus, are (from left): Michael Tollman (Cullinan Holdings), Bulelwa Koyana (SATC), and Denise Kotze (SAA).

6 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

NEWS

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High flyers!

Air Mauritius hosted its Kestrel flyers at a cocktail evening at its new offices in Bedfordview on May 20 to showcase its new on-board products and update guests on its new flight timetable. The new Johannesburg schedule starts on June 27 and will offer travellers more time in Mauritius. Flights will depart OR Tambo International Airport at 09h40 on Saturdays and Sundays, arriving in Mauritius at 15h40 Return flights depart Mauritius at 17h00 on Fridays and Saturdays, arriving in Johannesburg at 19h35. Mark Arendse of Eaglefin, who won two Air Mauritius tickets in a lucky draw at the function, is seen here receiving his prize from Carla da Silva, Air Mauritius regional manager for Southern Africa and Latin America. Photo: Shannon Van Zyl.

Tips for tourists in Thailand Debbie baDham

TRAVELLERS to Thailand are being advised to take certain precautions when

visiting the country, although travel and tourism remains largely unaffected after the coup by the army on May 22.

The Thai army announced a nationwide curfew from midnight to 04h00. In light of the current situation, the Tourism Authority of Thailand has advised travellers entering the Bangkok Metropolitan

Area to abide by the following identity verification process: Carry your passport with you

at all times in case an officer asks to inspect it.

When using airport taxi transfer services, either to or from Suvarnabhumi Airport, only use taxis with an authorised sticker from the Airport of Thailand PLC (AOT) displayed on the windshield. Taxis bearing this sticker can pass through checkpoints with ease.

Tourist groups with a tour

guide and tour bus are also allowed to pass through checkpoints.

Passengers unable to find transport out of Suvarnabhumi Airport during curfew hours should make use of the facilities available at the CIP Lounges 1-4 on the third floor of the passenger terminal.

Shuttle bus services between Suvarnabhumi and Don Mueang International Airports will continue to operate as normal.

Star Alliance introduces new RTW fares STAR Alliance has introduced four additional Round the World (RTW) fare levels.

Clients can now choose between 14 RTW fares: three for travel in first class, four in business and seven in economy class.

Economy-class fares will now be determined through a combination of the total number of stops made and the total mileage used. Through

the introduction of new fare levels, customers can now select fewer stops for a lower price. For example, a traveller using a 29 000-mile RTW ticket can now choose seven stops and make an average saving of 10%. The most economical option is the one that enables travellers to fly for a maximum of 26 000 miles, making between three and five stops.

Business-class travellers also now have the option of a lower fare covering up to 26 000 miles – this is in addition to the previously existing fare levels of 29 000, 34 000 or 39 000 miles, which are still on offer. The number of stops allowed will remain at a maximum of 15 and a minimum of three.

First-class RTW options remain the same.

QUICK READ FOR bUSIESt pEOplE Wednesday June 4 2014 n 7

TRAVEL NEWS WEEKLY

Where we are and what the future holds

The travel agents…

Education and training

PEOPLE SURVEY

The SA retail travel industry is facing a serious skills shortage, struggling to recruit, develop and hold on to young talent. What does the future of travel look like in South Africa? Who is the future of travel? TNW surveyed 462 travel agents and 50 corporate travel buyers in a revealing state-of-the-industry report, which was presented at Asata conference 2014.

60

50

40

30

20

10

0Grade 12 College diploma University degree Not travel

specific

Who participated in the survey?

How did you as a young consultant/the young consultants in your agency end up in travel?

What qualification do you have?

What workplace training does your agency offer young consultants?

Gender

88%12%

45% Gauteng

25% Western

Cape8%

Eastern Cape

17% KZN

5% Other

Place

65% 14% 12% 8% 1%

Race

White Black Indian Coloured Other

Experience

of respondents had 11 or more years’ work experience in the travel industry.

had 10 years or less work experience in the travel industry.

Gen X

69%

Gen Y

31%

They studied tourism and hospitality

They studied to become a travel agent

They didn’t choose a career in travel, it was by chance

They moved from another sector (airline, hotel, car rental, etc.)

Their family was in travel Other

50%

19%

14%

6%3% 8%

1

2

3

19%

55%

10%16%

22%

44%

17% 16%

LIkE their more experienced counterparts, the majority of Gen Y consultants have received their qualification from a college. However, there are fewer of them (Gen Y =

44%; Gen X = 55%) and more with a university degree (Gen Y = 16%; Gen X = 10%). 16% of respondents have a qualification that is not related to travel or tourism.

WHEn asked what training they would like to receive more of, the majority of Gen Y respondents said education on product and geography. Secondly, they said training on

ticketing of complex fares. They also mentioned that they would like to improve their knowledge on visas, would like more training in sales and would like to travel more.

1 - GDS and technology 2 - Product workshops

3 - Educationals4 - Sales

Young travel agents are getting the most training in…

As travel agents, we need to keep up to date on products. The world is a big place. In order to sell with confidence, I am always trying to read up on new tourist destinations. 0 10 20 30 40

38%5%

31%19%

Age

18 to 25

26 to 35

36 to 45

46 to 60

over 60 7%

Gen X

Gen Y

8 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

Sales experience

Ticketing of complex airfares

Good knowledge of geography

Good product knowledge

Travel experience

High energy, friendly ‘people person’

Highly organised, with attention to detail

Ability to work under pressure and manage stress

Ability to work at a fast pace

Ability to profile clients

Strong written and verbal communication

Good researcher

Good knowledge of visa requirements and work permits

Familiarity with booking expenses, reporting and other technology systems

Bilingual/multilingual

Sales experience

Ticketing of complex airfares

Good knowledge of geography

Good product knowledge

Travel experience

High energy, friendly ‘people person’

Highly organised, with attention to detail

Ability to work under pressure and manage stress

Ability to work at a fast pace

Ability to profile clients

Strong written and verbal communication

Good researcher

Good knowledge of visa requirements and work permits

Familiarity with booking expenses, reporting and other technology systems

Bilingual/multilingual

20%

44%

56%

40%

19%

22%

38%

44%

45%

44%

60%

43%

51%

45%

60%

61%

30%

56%

46%

72%

55%

55%

56%

43%

63%

64%

59%

55%

85%

71%

71%

77%

25%

34%

25%

29%

22%

9%

25%

24%

58%

43%

38%

42%

31%

32%

17%

24%

6%

9%

13%

14%

15%

19%

19%

19%

16%

16%

9%

14%

Gen Y

Gen X

Gen X

Gen Y

0 20 40 60 80 100

0 10 20 30 40 50 60 70 80

What skills do Gen Y need?

How are things changing in the development of skills? Gen X vs Gen Y

Examinations

5

6

TNW asked both groups to select the top five most important skills and knowledge that young consultants should have.

TNW asked both groups to rate themselves on what their top five strongest skills were.

For the most part, Gen X and Gen Y participants agreed on the top five most important skills that are required of young consultants, listing the ability to work under pressure and manage stress as the number

one most important. The biggest discrepancies were

in sales and verbal and written communication skills. 56% of Gen Y respondents thought sales skills were in the top five of the most important

skills a young agent should have. only 20% of Gen X respondents thought this skill should be in the top five. 58% of Gen X participants thought strong communication skills were in the top five of the most important skills a

young consultant should have. 38% of Gen Y respondents said it was in their top five.

Interestingly, the ability to profile clients was low on the list of the most important skills to have for both groups.

BoTh groups feel the strongest skill they have is the ability to work under pressure and manage stress.

The majority of Gen Y respondents did not rate good knowledge of geography and ticketing complex fares as one of their strongest skills, whereas Gen X participants rated themselves highly in these areas.

Both groups rated their adequacy in sales skills further down the list but Gen Y was slightly more confident, with 44% of respondents listing it as a top-five skill. 40% of Gen X respondents listed sales as one of their top strengths.

Both groups rated the ability to profile clients low on the list of

skills they have. only 24% of Gen X and 9% of Gen Y listed this as one of their top strengths.

82% of Gen Y participants thought they had enough training to adequately do their job, while 48% of Gen X thought young consultants should have more access to training.

An overwhelming 94% of respondents (from both groups) are in support of the concept of examinations and professional grading as a way to raise the standards in the travel industry.

Kids walking out of college with a two-year diploma have had two years of their lives stolen from them because they are

absolutely clueless about life in an office and travel.

It’s an important part of growth in a company. This allows

you to know where you stand compared with your colleagues.

4

QUICK READ FOR bUSIESt pEOplE Wednesday June 4 2014 n 9

What is your company’s policy regarding educationals? How often do you travel?

% of package is commission

8

right now the salary structure in the industry is shameful. You get people who

are qualified and able to work beyond expectations, but because the standards are

so low and there is a lack of professional grading, the salaries are not representative

of this calibre of consultant.

43% of Gen Y said educationals were linked to incentives and rewards, only 23% of Gen X respondents agreed.

The majority of Gen X respondents (63%) said fam trips were to educate and upskill staff, only 37% of Gen Y participants agreed.

A small percentage of each group (20% Gen Y, 14% Gen X) said educationals were taken by the most senior consultants or the manager.

TravEl agents don’t travel. Both Gen X and Gen Y said they either travelled once a year, or never!

The majority of respondents (both groups combined) said they travelled once a year (47%). A huge 33% of participants said they never travel. 17% said they travelled three or four times a year, whereas only 3% travelled once a month or week.

SalariesHow much do you earn?

I love my job!

The majority of Gen Y consultants who participated in the survey said they earned between r5 001 and r8 000 per month (monthly gross, before deductions). 22% said they earned between r11 001 and r16 000 and 8% said they earned between r16 001 and r20 000.

The majority of the more senior

participants (Gen X) indicated they earned between r20 001 and r30 000 (32%). not surprisingly, Gen X earn more than Gen Y, with around 20% of both groups saying they earned between r11 001 and r16 000.

only 3% of Gen X participants said they earned over r50 000 a month.

I love my job, although the pay is poor compared with other industries: 54%

I love my job and I earn a good salary: 31%

I’m in travel because I don’t know what else to do: 8%

I’m slightly dissatisfied with my job but I earn a good salary: 7%

Who is the future travel consultant?The travel agent of the future is customer-centric, multifaceted, works well under pressure, gives attention to detail, is willing to learn, is passionate about travel and can think outside the box. These are some of the characteristics Gen X respondents listed when asked what skills and attributes they see the future travel consultant exhibiting...

“Good product knowledge, people

person, organised, problem solver, and obviously a love for travel – this is what I would look for when hiring a junior.”

“Must love travel, must love people, must love to read and research things, must be open to learning, must be pro-active, must add value. Must be an adviser, not an order taker.”

“Able to ask the right questions,

profiling the client, and close the sale. have a good knowledge of geography, manage their time effectively, and have attention to detail. Takes initiative and upsells. Keeps up to date with trends.”

“All-round travel office experience is key and more valuable than any formal qualification.”

“The future consultant will have to travel more to sell with experience.

They’ll have to be available, 24/7. They’ll also need to be able to source good fares and packages, while offering good service.”

“I teach Grade 11 and Grade 12 travel and tourism students at a local high school. There is a big interest in hospitality but most learners feel there is no future for travel consultants because ‘the Internet is king’.”

Where do you see yourself in 10 years?The majority of young consultants who participated in TNW’s survey were positive about their future in the industry.

Most respondents saw themselves as growing in the industry, either being promoted or starting their own businesses. 10% of respondents expressed

the wish to move out of travel completely. 22% said they would like to remain in travel but not as a consultant.

Money seems to play a big factor, with many of the participants saying their future in travel depended on salary, as they felt the salaries in travel were not

adequate to sustain them in the long-term...

“I hope to become a specialist in one thing. Internet booking sites are slowly making agents redundant. If you know one product and know it well, you still have a business.”

“I see myself still in travel and

a team leader, hopefully earning a better salary than I do now.”

“I have no idea, to be honest. It feels like travel agents have a sell by date.”

“Although I love what I do and the industry, I’m dissatisfied with my salary and am now looking for something else to do.”

35%

30%

25%

20%

15%

10%

5%

0%

Gen Y

Gen X

Less t

han R

5000

R500

1 - R8

000

R800

1 - R1

1000

R110

01 - R

1600

0

R160

01 - R

2000

0

R200

01 - R

3000

0

R300

01 - R

5000

0

Over R5

0000

% of commission

% o

f age

nts

0%-5% 6%-10% 11%-20% 21%-30% 41%+

68%

7%8%

31% 54%

7

17%5% 5% 3%

10 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

We want experience!

Knowledge and skills

Room for improvement

Who participated in the survey?

What level of qualification do you expect from your corporate travel consultant?

What skills do you think are important for travel consultants to have?

What knowledge do you rely most on your corporate travel consultant having?How many years’ work experience do you expect from

your consultant?

52%48%

College certificate or diploma University degree Grade 12 It doesn’t matter, as long as they

have experience other

6 to 10 years 2 to 5 years 11 to 15 years More than 15 years

1

1

22

What corporates want from their travel agentThe relationship between the travel buyer and the TMC is critical. It’s important that consultants have the skills to meet the needs of their corporate clients. TNW surveyed 50 corporate travel buyers through its sister publication, Travel Buyer, to find out what skills they require from their travel agent

48% of corporate buyer respondents indicated that they had a background in travel, the majority of whom had previously worked as a travel consultant or in a TMC. Others said they had experience working in the airline, hotel and car-rental sectors.

We welcome feedback on this survey and ideas for future ones.

Contact natashat@nowmedia.co.za

72%

6%8%

4%

10%

59%27%

12%2%

Highly organised with attention to detail Ability to work under pressure and manage stress

Making reservations: airline, hotel, etc. Ability to work at a fast pace

Ability to profile travellers and personalise service Well-travelled

High energy, people person Strong written and verbal communication

Good researcher Negotiation skills Sales experience

COrpOraTe respondents are looking for agents who are organised, have attention to detail, and can work under pressure – traits often

gained with experience. also, they think it’s important that consultants are familiar with ticketing and reservations processes.

1 - product knowledge (airlines, hotels, car rental, etc.)

2 - Geography and destination knowledge

3 - Visa requirements and work permits

4 - Familiarity with bookings, expenses, reporting and other technology systems

5 - Understanding travel policies and budgets

6 - The organising of meetings and events

7 - Languages (bilingual/multilingual)

100

80

60

40

20

0

69%

55%51% 51%

47% 47%

39%

29%

20%

8%

90%

1 - Slow turnaround times

2 - a lack of attention to detail

3 - Not enough ‘best-price’ options

4 - a lack of good product and destination knowledge

5 - Not taking initiative

6 - Staff turnover, which is disruptive

7 - Not well-travelled

TraVeL buyers seem to experience the same

frustrations when dealing with corporate travel consultants. The number-

one frustration that most respondents listed was slow turnaround times (32%). another big frustration was a lack of attention to detail (22%), one of the most important skills that

buyers indicated earlier in the survey.

“My biggest frustration is slow turnaround times, not getting the best, most cost-effective deal and delays in receiving travel documentation.”

“Consultants don’t give you enough options. They also don’t read the details of the brief for itineraries. I usually have to double check dates, connection times, etc.”

“If you are not allocated a specific consultant to deal with your account, and you have to explain everything again to a different agent, this delays the process. You need to build a relationship with your consultant.”

QUICK READ FOR bUSIESt pEOplE Wednesday June 4 2014 n 11

Car Rental

The car-rental industry is being forced to increase the cost of rentals. Dorine Reinstein speaks to industry experts.

Brace yourselves for rising costs!

SOUTH africans can expect to pay more for car-rental services

in the near future, as car-rental companies report that challenges such as e-tolls, a weak rand and a still sluggish economy are seriously affecting costs.

The rand’s downward spiral is having grave repercussions for both the cost of vehicle parts and fuel, says Fiona Angelico, national sales and marketing manager for Thrifty Car rental. “This has a direct impact on our bottom line. The challenge is to keep rates competitive,” she says.

avis, too, recognises that cost increases driving up the price of car rental will be the main challenge over the next 12 months.

Ce, Keith Rankin, says the rand’s devaluation, the change in the interest cycle and the upward pressure on CpI are all contributing factors to the rising costs.

“Interest and fuel price hikes and new car prices will be a major challenge for our industry,” agrees Melissa Storey, executive head: strategy, development & marketing at First Car rental. “We have already experienced an interest rate hike of half a percentage point this year, and every increase affects us significantly on a fleet of 6 000 cars.” Melissa says her company will have to be vigilant with their variable costs and still remain competitive when price increases become a necessity. “We’ll have to operate even smarter to ensure that we continue to remain a profitable business for our shareholders.”

Gaynor Von Loggenburg, sales and marketing director for Budget Car rental, points out that since 2010, average car-rental rates have remained low, only increasing marginally by 5% cumulatively. “This is neither

sustainable nor responsible and customers can expect to see higher-than-inflation increases – driven by external factors such as vehicle price increases, interest rates, fuel and shareholder expectations.”

e-tolls in Gauteng seem to have aggravated the situation. Yanna Dickens, systems and technology manager for Hertz, says the cost of systems development to capture the thousands of toll transactions via a daily file has put significant pressure on the industry. Toll accounts received late are another major obstacle. “We need to effectively bankroll these until payment is received from the renter. We have seven days to pay the tolls and we may only receive payment from customers up to 90 days after the event.”

Melissa says although the systems and hardware that First Car rental has had to ‘invest’ in e-toll reconciliation have been reliable, it doesn’t change the fact that the company has had to spend millions on it.

“and we continue to utilise resources for exceptions and customer queries related to e-tolls – which could have been utilised in efforts to enhance our actual core

business instead.”The threat of rising car-

rental costs comes at a time when the corporate market is already under significant pressure to reduce travel budgets. according to the recently released avis Travel Index, car-rental bookings made locally by travel agents through the GDS were on a slow decline between December 2012 and December 2013. avis says a number of factors linked to the economic slowdown could have led to this, such as companies cutting back on travel, planning shorter trips, staff sharing vehicles and replacing travel with video conferencing

Fiona says: “Corporate buyers are informed and ensure that all the necessary inclusions are in their rates. They do research to ensure they are getting the best rate for their company without compromising service or product offerings.” She foresees that customers will continue to be diligent in their negotiations and travel spend for the year to come, which will result in the total market for car rental being reduced.

She believes GDS bookings could also be down because an increasing number of corporates are looking to reduce costs by booking directly with suppliers or by using the providers’ booking channels. “GDS cost per booking parameters are such that external booking mediums have been effective, as these can reduce the cost parameters to the end user. Websites have also become a new trend as specials are offered there during low season. This provides the corporate traveller with flexibility if they have a corporate credit card.”

“Companies curbing their travel spend is a worldwide occurrence, irrespective of booking channel,” argues

Melissa. She says First Car rental has consciously chosen to have very limited exposure to the various GDSs due to the volatile rand and their foreign billing

structures. “We have always remained ahead of our competition by ensuring that our own direct integration capability remains simple and achievable by any third party.”

Melissa Storey

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12 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

Mythbuster: ‘I’m against e-tolls – I don’t have to pay’

ACCORDING to car-rental companies, this is without doubt a myth. No matter how vehemently opposed customers are to e-tolls, when they rent a car, they will be liable to pay for the tolls.

Melissa Storey comments: “We have a few anti-e-toll customers, to the extent that they remove the e-toll tag while renting our vehicles.”

This action, however, makes no difference as the car hire company’s system alerts them that the tag is faulty or has been removed.

Because the registration number of the vehicles indicates it belongs to First Car Rental, and the company knows who drove the car at that date and time, the applicable contract holder is still auto-billed.

Avis, too, has been faced with e-toll rebels, who remove e-tags from the windscreens. Keith Rankin says: “Clients believe that Avis is profiting from e-tolls and that we support this method of infrastructure funding. On the contrary, Avis is seeking to just cover its e-tolling costs and

we would have much preferred a mechanism like the fuel levy, which has none of the administrative burden that we are currently having to develop and manage.”

Late e-toll bills are, further, not an excuse not to pay. Gaynor Von Loggenburg says: “The late submission of files from Sanral has resulted in late invoicing to the customer, which the customer does not always understand. We have made the customer aware, however, that we are totally dependent on Sanral for all information.”

Car Rental

Car-sharing could be the futureGLOBALLY car-rental companies are increasingly purchasing or developing car-sharing businesses, something that could be the car-rental model for the future.

One example of car sharing is the Avis Budget Group’s ZIPCAR, which represents a collaboration between two international car-rental forces. It is

not available locally. Keith Rankin, explains:

“Car sharing is a model of car rental where people rent cars for short periods of time, often by the hour. They are attractive to customers who make only occasional use of a vehicle, as well as others who would like occasional access to a vehicle of a different type than they use day-to-day.”

Thrifty introduces Blue ClubTHRIFTY recently introduced the Blue Club Service for its loyal corporate customers. The service includes separate counters for all Blue Club members at all international

airport locations. Customers simply show their driver’s licence, sign for their cars and go. Their vehicles are allocated to special bays, closest to the branch.

Illus

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Car sharing is an attractive option for short rentals.

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QUICK READ FOR bUSIESt pEOplE Wednesday June 4 2014 n 13

Car Rental

P2P – a flourishing serviceDESPITE shrinking corporate travel budgets, which have led to a decline in traditional car-rental bookings, point-to-point transfers have seen an unprecedented boost over the past few years.

The popularity of the service has prompted Thrifty to launch a new point-to-point service for its customers. Fiona Angelico says demand can be witnessed at airport arrival terminals.

“There are more and more personalised services being offered to customers on arrival. Transfer services are very popular with our female customers. They enjoy using this service as they feel safe when travelling in areas they are not familiar with.” Thrifty is currently in the process of establishing this service in the Western Cape and Gauteng.

Gaynor Von Loggenburg says: “Our Door2Door has increased in popularity month on month. Corporates state that the main reasons are safety and

security plus a timesaving factor due to traffic. The cost of airport parking has made it more cost effective to use Door2Door as opposed to leaving their personal vehicles at the airport.” Budget has considerably increased its Door2Door fleet to accommodate the demand.

Europcar has also seen an increase in consumer demand for tailored transport solutions that address conferencing and event requirements. Europcar’s SA commercial officer, Martin Lydall, says: “Europcar has an experienced specialist team that is dedicated to meeting our customers’ needs. Our solutions range from a traditional chauffeur service and transfers to a flexi-drive service and allow for

maximum flexibility.”According to Martin,

Europcar chauffeur services are a cost- and time-effective alternative to traditional self-drive, with cost options ranging from economy to luxury and including off-peak rates. “Savvy businessmen away from their home towns enjoy chauffeur services because they don’t have to find their way around challenging road diversions or worry about parking. And while travelling, they can safely attend to calls and messages or go through the next meeting’s papers.”

Keith Rankin agrees that point-to-point is often far more convenient and relaxing than traditional self-drive. He says: “With the increase in fuel prices as well as the increased cost of parking in the cities it has also become a cost-effective solution.”

Hertz has made some substantial changes to the point-to-point fleet to include vehicles that have

more features, are more comfortable and offer better value for money. Peter Le Grange, national chauffeur drive and Gauteng manager says: “Due to the high level of traffic and congestion in certain areas, a growing number of clients prefer to travel this way. It allows

them time to catch up on e-mails or make calls while our driver gets them to their destination safely and on time. There is no need to familiarise themselves with the area to which they are going. They can simply sit back while we get the job of getting them there done.”

Chauffeur service is a cost-effective alternative to self-drive. Photo: Europcar

“Our Door2Door has increased in popularity

month on month.”

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14 n Wednesday June 4 2014

Car Rental

Booking gets easier with Europcar EUROPCAR recently implemented a variety of upgrades to its direct booking solutions. These include mapping technology and a vehicle comparison process, as well as the implementation of faster online booking and improved search and navigation features.

“Our brand promise is ‘moving your way’ which means listening in every way possible to our customers in order to evolve our offerings alongside their

evolving business needs,” comments Martin Lydall. He adds that bringing new products to market is key – a good example of this being the company’s BusinessConnect online booking service for small businesses.

A local industry first, the tool enables local SMEs to benefit from car-rental services at highly competitive rates.

What’s more, Europcar’s business-to-business website tool, which was

launched in mid-2013, provides businesses with a platform from which they can access facilities for accounts management, electronic information reporting and electronic invoices.

The website tool is compatible with all major web browsers and is accessible from anywhere in the world.

“We constantly try to harness technology that delivers win-win world-class solutions,” says Martin.

Woodford facilitates easy access to trade deals THE Woodford Car Hire Group will be unveiling a new corporate office in Durban in July. The new addition to the company’s network is expected to serve as a strategic base for growth.

Woodford implemented key changes to its offering in January, among them making its products available through Travelport. The group has also been able to implement a number of back-end tools to

facilitate easier access to trade deals and offers, the latest of which has been a computer reservations system through Travelport.

Another development was Woodford’s affiliation with Costa Rican car-rental giant, Economy Rent A Car.

The company has a global footprint across 18 different countries and provides travellers with competitive rates in 60 different locations.

Did you know?

Tempest Car Hire was the first car-rental company to promote the use of debit cards and automation of refunds, enabling it to tap into a significant new market. The company has also implemented a number of other industry firsts – Tempest was the first in the industry to offer free baby seats or – ‘Future Renter seats’ to its customers. It also offers free magazines at all major Tempest locations. The business also has plans to further improve its technological prowess with a new IT platform that will further enhance the customer experience.

Technology offerings improveCAR-rental companies are continuously improving their technology offerings.

According to Keith Rankin, customers can expect the continued e-enabling of car rental into the mobile app space. “This will not be just for making bookings but is evolving to picking up and returning of vehicles, the

recording of an accident at the accident scene to the logging of customer service issues.” Keith adds that customers can also expect more telematics in car-rental vehicles as the cost and abilities of these systems justify the financial returns.

Yanna Dickens says Hertz recently introduced a Google

Maps development integrated with its delivery/collection quoting system, which is a first for car rental. Hertz also introduced a QBuster, a link on the reservation confirmation, where clients can log in and update their details so that when they reach the counter their details are in the rental system.

For the best international car rental offers, visit hertz.com

Mail: hertz@holidayholdings.co.za Call: 0861 4 HERTZ (43789)

NO ONE GETS YOU ON THE ROAD FASTER

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JOBSCOMMUNITYNEWSBirths, deaths, marriages, promotions – we want to know! Please fax or e-mail TNW’s Debbie Badham, at debbieb@nowmedia.co.za or (011) 327 4094.

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Systems Administrator First class inbound operator seeks your problem solving skills! Strong comm skills & knowledge of Accpac! To R23 000 ctc.

Senior Cons Corp travel leader needs your marine & offshore expertise! Loads of interesting int’l arrangements! To R22 000 ctc.

Top Interm Cons Flaunt your corp skills! National travel co seeks a go-getter with exceptional Galileo skills! R15 000 ctc neg.

Leisure Enthusiast Love booking dream holidays? Write your own cheque! Amadeus ess! R10 000 + lucrative comm.

Tel: Cornelia 011 452 0204 corneliavz@nowjobs.co.za

Top jobs in Gauteng this week:

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Swimming in the moonlight

Beachcomber hosted an educational in March at the private island of Sainte Anne Resort and Spa in the Seychelles. Travel agents enjoyed snorkelling in the marine park and an 8km trek circumnavigating the island, which has amazing look-out points and remote beaches.  Enjoying a full moon swim at the Royal Villa (from left) are: Lisa Kruger (manager, Pentravel Citi Bowl); Ursula Craig (manager, Pentravel Fourways); Sianna Book (Pentravel – Pendirect); Monique Bekker (Pentravel Centurion) and Lauren Bruyns (manager, Flight Centre Deville).

Pick of the week

These adverts were selected from the vacancy section of www.travelinfo.co.za For more details contact jobs@travelinfo.co.za

brought to you by

TNW

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Operations/Travel Manager – JhbQuantex Recruitment GroupRNeg. You have 10 + years’ experience managing corporate team. HR/Ops/Client retention all part of your portfolio. Email: bridget@quantex.co.za

Senior Consultant - JHB NorthProfessional Career ServicesMin 7 years corporate experience. International & regional (Africa) knowledge. Able to work shifts. Own transport. Ideal for someone looking for after-hours position. Email: jeancv@pcs-sa.co.za

Ground Handler - DurbanLee Botti & AssociatesWestville. Riveting opportunity to package travel arrangements & handle logistics requirements forspecialist inbound tour operator. Sal: +/-R12 000. Email: ashneem@nowjobs.co.za

Roving Consultants – GautengInfusion ConsultingFull-function corporate consulting - 5 years’ as a senior + 2 year roving. Fares & ticketing ess. (Pretoria/ Rivonia). Amadeus. R highly neg. Avail: ASAP. Email: belinda@infusion.co.za

Business Development Managers – JohannesburgFlight Corporate TravellerWe are looking for business development managers to grow our new business in Johannesburg. Corporate sales experience essential. Email: megan.vorster@flightcentre.co.za

Systems Administrator – SandtonEquity Connections ccTake full responsibility for the management and maintenance of procurements system for leadingoperator. Sound financial and computer skills essential. Email: equitycon@mweb.co.za

Customer Services Manager – Cape TownClub TravelFantastic opportunity to work in travel, willing to go the extra mile, meet and exceed service level agreements. Email: careers@clubtravel.co.za

Quality Controller – Cape TownClub TravelMeticulous person needed to do checks on airline tickets. Must have experience in recalculations, international fares and exchanges. Email: careers@clubtravel.co.za

VIP Agent - Cape TownQuantex Recruitment GroupR16000 basic. VIP inbound consultant with Amadeus required. Must have excellent knowledge of SA - offering service excellence to UK market. Email: lee@quantex.co.za

Team Leader FIT/Groups - CPT NorthProfessional Career ServicesMin 5 years’ consulting experience in inbound travel. Product knowledge of Southern Africa. Staff management experience essential. Salary: R16000 neg. Email: candicecv@pcs-sa.co.za

French Tour Consultant - Cape TownLee Botti & AssociatesSouth. Luxury brand seeking French speaking Southern Africa specialist to deal direct with French markets. Salary R15 000 + comm. Email: malikam@nowjobs.co.za

Top Senior Consultant - SandtonInfusion ConsultingComplex travel consulting (Africa - Oil & Gas). 6-8 years’ as a senior. Shift work - will require some: days/nights/public holidays/weekends. Amadeus/Galileo. Salary neg. Email: belinda@infusion.co.za

Travel Expert – JohannesburgFlight Centre2 years’ sales/customer service, Matric or relevant degree/diploma, SA citizen, international travelexperience. Basic, lucrative commission structure, medical aid and provident fund. Email: megan.vorster@flightcentre.co.za

Intermediate Consultant - East RandEquity Connections ccAssist senior with all overflow bookings, flights, accommodation, transfers, ticketing etc. Must haveGalileo and fluent in Afrikaans and English. Email: equitycon@mweb.co.za

Travel Advisor – NationallyPentravelLooking for outstanding people who are highly motivated and driven with a focus on delivering exceptional customer service. Benefit from great financial rewards. Email: recruitment@pentravel.co.za

Senior Corporate Consultant – Gauteng - Rivonia – RetailWendy’s Travel PersonnelLeading travel concern requires experienced senior consultant who enjoys the flexibility of working shifts! Amadeus/Galileo experience. Email: wtp@icon.co.za

Community News

Qantas launches Change for GoodQAnTAS, together with Unicef Australia, has launched a campaign encouraging passengers to donate as little as five cents to change the life of an underprivileged child. The Change for Good campaign encourages travellers to collect their spare change and put it to good use. While loose change is often forgotten in pockets, handbags and desk drawers, to Unicef five cents is the cost of providing one child with clean drinking water for two days.

Passengers can now deposit their spare change in Change for Good envelopes provided in seat pockets on Qantas domestic flights and place them in Unicef collection bins at domestic airports around the country including Sydney, Melbourne, Adelaide, Perth, Darwin, Cairns, Brisbane and Canberra.

16 n Wednesday June 4 2014 QUICK READ FOR DECISION-MAKERS

TNW NEWS

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Clients are doing their homeworkAre more clients researching destinations before seeking your professional help?

n Yesn No

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concerns that have been raised by industry authorities regarding the lack of demand to sustain more new carriers planning to launch domestic services between Johannesburg and Cape Town this year, Javed says: “First entrance is very crucial. We believe we will have the first mover’s advantage.”

He explains that it is still Pak Africa Aviation’s intention to use the 1time brand but that the company’s marketing team is doing a survey on the

pros and cons of doing this. “We would like to put a message to consumers to comment on the 1time Facebook page about their views on using the same

brand,” says Javed. The 1time Facebook page, however, has been inactive with the last post on November 2012.

Javed says the company

has two other brand options but that these could not be disclosed until a later stage.

“All legalities are complete in terms of regulations but we want to use one brand and wish to launch both domestic and regional at the same time,” he says.

In December Pak Africa Aviation acquired a 62% stake in Global Airways, which offers non-scheduled flights throughout Africa. Global Airways is also licensed to operate scheduled passenger flights and has purchased four A320 aircraft.

Dorine reinstein

THE launch of flyafrica.com’s maiden flight edges nearer as the

Zimbabwe-based LCC has been issued with its Air Operator Certificate (AOC) from the Civil Aviation Authority of Zimbabwe (CAAZ).

Annajulia Hungwe, spokesperson for CAAZ, told TNW flyafrica.com had a fleet

of five B737-500 aircraft. The airline is expected to commence flights mid-July with operations to Victoria Falls and Johannesburg.

But a spokesperson for the Department of Transport in South Africa said the airline had yet to apply for route approvals by the relevant governments under the Bilateral Air Services Agreements.

Meanwhile, flyafrica.com remains tightlipped about the details of the airline’s progress. Adrian Hamilton-Manns, project leader of flyafrica.com told TNW he would only be in a position to share news about the launch date in coming weeks.TNW first reported on

flyafrica.com’s plans to launch regional services earlier this year (see TNW January 29).

Flyafrica.com set to launch in July

For the recordIn last week’s TNW (May 28), the article ‘Thailand – cancellations not covered’ mentioned that TIC travel policies excluded all forms of civil war as well as martial law, meaning travellers could not claim losses should an airline cancel its flight. After publishing, TIC advised that it had decided not to impose any restrictions on policies for Thailand.

‘1time’ to pip others to the post?From page 1

“First entrance is crucial. We believe

we will have the advantage.”

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TWO additional Airbus A320s are being completed at the Airbus facilities in Toulouse ahead of their deliveries to SAA over the next few weeks.

They are the latest in an order for 20 of the cost-efficient twin-engined jetliners that are being customised to SAA’s unique specifications,

Airbus said in a statement.They feature a two-class

cabin layout, with 24 seats in business class and 114 in economy. SAA began receiving its new A320s last year and has taken delivery of four of the aircraft to date. It also operates two leased A320s.

“Its move to a common

Airbus fleet is already delivering cost and operational efficiencies and improving its profit margins across its domestic and sub-Saharan Africa network. These will improve further as its A320 fleet expands and as the markets SAA serves continue to grow,” Airbus said.

SAA to receive two new A320s