Travel News Weekly - 10 March 2010

TRAVEL NEWS WEEKLY

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SouThERN AfRiCA’S TRAVEL NEWS WEEKLYMarch 10 2010 I No. 2097

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NEWS2010 AirFAreS

Airlines could land in hot water

EWLY appointed SAA ceo, Siza Mzimela, has an affinity for happy endings and her plans for the beleaguered airline are no different.

Despite the problems SAA has experienced and the challenges Siza will face in her new role, she is confident

that her previous aviation experience and passion for the industry will stand her in good stead to

bring a happy ending to years of strife at the national carrier.

The announcement of her appointment came as an

independent investigation was completed into alleged bad

governance practices by the airline’s former ceo, Khaya Ngqula.

Khaya was suspended following allegations of bad governance and abuse of SAA’s procurement system. The results of the investigation are expected to be made public this month. Since Khaya’s suspension, Chris Smythe, who is now heading up the airline’s operations, had been acting ceo.

“There has been a certain amount of confidence lost as a result of what has happened in the past. There are good things that people have done and continue to do every day but these have not been visible in the industry. I hope we can rebuild the confidence and trust that has been lost.”

She says proper governance

‘Give us a chance’ – SAA’s SizaTNW’s Melody Brandon speaks to SAA’s newly appointed ceo on her first day in the job…

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NEWLY appointed SAA ceo, affinity for happy endings and her plans for the beleaguered airline are no different.

Despite the problems SAA has experienced and the challenges Siza will face in her new role, she is confident

that her previous aviation experience and passion for the industry will stand her in good stead to

bring a happy ending to years of strife at the national carrier.

The announcement of her appointment came as an

independent investigation was

‘Give us a chance’ – SAA’s SizaTNW’s Melody Brandon speaks to SAA’s newly appointed ceo on her first day in the job…

“There has been a certain amount of confidence lost as a result of what has

happened in the past. There are good things that people have done and continue to do every day but these have not been visible in the industry. I hope we can rebuild the confidence and trust that has been lost.” To page 12

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and internal procedures would need to be built on in the coming months.

“Work has already been done in this area but we need to build further on this and ensure we are a perfect example of proper governance in any state-owned enterprise. Part of growing and consolidating routes will be to enter into codeshare agreements with partners in Africa.”

With 14 years in SAA including, among other positions, research analyst,

executive vp of global passenger services and responsibility for the airline’s core business global sales and Voyager, as well as board member of SA Tourism, chairperson of the Airlines Association of South Africa and ceo of SA Express, Siza is well positioned to take up the new challenge.

Under her tenure as SAX ceo, the regional airline grew in leaps and bounds, introducing a number of new routes and launching Congo Express, a new airline in the DRC. Last year SA Express declared a nett profit

of R235m, under difficult economic circumstances.

“I do have a good understanding of some of the challenges within aviation and I think I bring a lot to the table, including my ability to build teams and motivate employees to want a common goal. The most important thing I bring is my passion for the industry,” she says.

Siza’s immediate plans for SAA include reviewing the preparations made for the 2010 Soccer World Cup and tackling “burning issues”

that need to be addressed speedily.

“Ask me in two weeks’ time and I will have a much

longer list for you.” Siza recognises that a good

working relationship with the travel trade is vital to the success of the airline.

One of the areas of focus for the trade, she says, is to ensure proper communication. Rebuilding and improving the lines of communication between the airline and trade is a top priority for Siza.

“Please give SAA chance. Don’t allow one or two negative actions to dent the image of the airline. There are thousands of people who are doing their best every day.”

The importance of the trade to Siza is evident by her granting an exclusive interview to

TNW on her first day in the job.

Photo: Tijana Huysamen

NEWS

2 n Wednesday March 10 2010 QUICK READ FOR DECISION-MAKERS

Phone: (011) 327-4062 Fax: (011) 327-4094 E-mail: [email protected] 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 Lugan Investments (Pty) Ltd trading as Now Media Printed by Juka Printing (Pty) Ltd

EDITORIAL Editor: Natalia Thomson [email protected] Sub -Editor: Ann Braun [email protected] Cape Town Editor: Hilka Birns [email protected] Journalists: Jeanette Phillips [email protected] Tippel [email protected] Brandon [email protected] Photo Journalist: Tijana Huysamen [email protected] Editors: John H Marsh (1914-1996) Leona Marsh (1923-2003)

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Rubes® By Leigh Rubin

Melody Brandon

AIRLINES could land in hot water as lack of transparency in quoting

and advertising combined with inconsistent policies regarding cancelled tickets over the 2010 World Cup could contravene the Consumer Protection Act (CPA).

The Department of Tourism is now investigating airlines for the alleged lack of transparency, particularly as it applies to “amorphous” taxes, fees and levies.

“Members of the public have the right to know what they are paying for. This matter has been brought to the fore as a result of ticket prices during the World Cup but it is vital that we investigate it in the context of our tourism industry’s long-term sustainability,” said tourism minister, Marthinus van Schalkwyk.

Benchmark’s Advocate Louis Nel argues, however, that the minister’s comments may be premature since the Act doesn’t address the level of transparency airlines will be mandated to provide.

Louis said if airlines contravened the Act, they

could face penalties of up to 10% of their annual turnover or R1m, whichever was less.

Meanwhile, kulula.com has challenged SA airlines to lower their fares over the 2010 Soccer World Cup.

“It is our policy to rather add more flights than to rely on pushing prices up. If you compare the prices of domestic flights during the tournament, our prices are the lowest, finished and klaar. We invite consumers to compare for themselves and we challenge all airlines to reduce their prices,” said kulula executive manager group marketing, Heidi Brauer.

Comair joint ceo, Gidon Novick, said that to date none of the airlines had responded to the challenge. “The prices are still high.” He said with prices based on supply and demand, there might not be a lot for the DoT to investigate.

1time commercial manager, Desmond O’Connor said: “It says in the challenge that the low fares will not be around for too long and that clients would have to ‘rush’ to get the low fares. If it were a real challenge, then we would challenge kulula to keep their prices low throughout the

World Cup. We advertise our fares as all-inclusive, so I do not think the investigation will apply to us but we would welcome more transparency in the way fares are structured.”

Vimla Maistry, SAA acting head group corporate affairs, said the airline’s lowest class categories were comparable to the prices offered by low-cost carriers. “We are not a low-cost carrier and have the different class categories for those who can afford it. We will not heed to kulula’s call specifically but will monitor demand and will price our fares accordingly.”

Vimla said SAA welcomed the decision to investigate airfares.

“We break down our prices for the consumer already, so there would not be any problem should the ministry want to investigate how our prices are structured.”

Chris Hoare, chief revenue officer at Airlink, said it would be premature to comment on the ministry’s investigation as it would need to see the details. He said: “We are not flying the golden triangle, so we will have to structure our fares for the specific routes we fly.” n

Thai Airways has confirmed that it will resume its scheduled flights on the Bangkok-Johannesburg route from May 16. The airline made the announcement in its 2010 summer schedule. The airline plans to operate four flights a week on Mondays, Wednesdays, Fridays and Saturdays.

2010 airfares could contravene CPA

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NEWSFor the record

KateKateK els

THE Hilton Sandton is in the process of introducing a new level

of de-luxe guest rooms for leisure and corporate travellers. The de-luxe suites, king and twin rooms on the hotel’s second and third floors, will be completed by the end of May.

The refurbished rooms offer contemporary design principles with dedicated zones aimed at meeting the comfort and functional requirements of guests. Three zones divide the area into a work space, a relaxation space and a sleep/rest space.

“The concept of specifically differentiating these three

spaces in the new rooms was vital to how the room came together from an installation point of view,” said gm, Axel Hauser. “Every item installed in the room was moulded to reflect the zone theory and how best each space would work for the guest.”

Hilton Sandton is also making substantial headway towards achieving its goal of reducing energy consumption by 20%. The refurbished rooms will consume 50% less energy than previously. This is made possible through sealing the windows to control temperature, compact fluorescent lighting and the installation of appliances in the room that draw substantially less power.

The mini-bar in the room is

remote controlled to run for only a few hours during the day.

The rooms offer new technologies for business travellers, allowing guests to plug their laptop display into a data point for the flat-screen TV.

This, says Axel, is ideal for businessmen who need to practise a presentation or would prefer to work on a bigger screen.

The rooms offers conveniences such as UK, USA and European power outlets, iron and ironing board facilities, automatic lights in the wardrobe, individual reading lights above the bed, a security safe and tea- and coffee-making facilities. n

Natasha tippel

A NEW company, Fly Assist, which was launched in January, offers clients professional, assisted travelling from their airport departure location to their chosen arrival destination and back.

The service is available to passengers with special physical and medical conditions as well as minors travelling on their own or parents travelling with infants and small children who may

need assistance. Fly Assist will meet the

client at drop-off, escort them until they are safely in their seat and support the client for the duration of the flight. On arrival, Fly Assist will help clients with collecting their luggage, moving through customs and finding transport from the airport.

According to founder, Juanita Oosthuizen, a comprehensive questionnaire and discussion of the passenger’s needs

and interests will be conducted prior to the flight. “Every passenger who needs specialised attention during the flight will receive individualised attention geared towards his or her specific needs.”

Trained professionals, for example occupational therapists with a diploma in first aid care, will provide clients with individual attention and assistance. Fly Assist offers services for both domestic and international flights. n

In the ‘Specials Spot’ in TNW dated February 24, it was reported that Singapore Airlines was offering special return airfares to China, Taiwan, Australia, and New Zealand ex-JNB from R5 160, including taxes. The fare, however, excludes taxes. TNW apologises for the error.

Hilton Sandton unveils revamped guest rooms

Travelinfo ,s Hayley Cochran selects the top specials from Travelinfo

Specials Spot

● Air Mauritius. Special promotional fare from R2 990 ex-Durban or Cape Town via . Special promotional fare from R2 990 ex-Durban or Cape Town via Johannesburg. Valid for sales until March 14, travel must be completed by March 20. Johannesburg. Valid for sales until March 14, travel must be completed by March 20. Excludes taxes.● Travellers’ Choice. ‘Escape the World Cup’. Mauritius extended-stay packages from ‘Escape the World Cup’. Mauritius extended-stay packages from R10 726 per person sharing. Includes return flights ex-Johannesburg, return transfers R10 726 per person sharing. Includes return flights ex-Johannesburg, return transfers and 10 nights’ all-inclusive accommodation at Blue Lagoon. Valid June 11 to July 11. and 10 nights’ all-inclusive accommodation at Blue Lagoon. Valid June 11 to July 11. Excludes taxes. Fourteen-night packages also Excludes taxes. Fourteen-night packages also available from R13 635 per person sharing.available from R13 635 per person sharing.● Game Plan Afri-VenturesGame Plan Afri-Ventures is offering a special rate in the Nambiti Private Game a special rate in the Nambiti Private Game Reserve in KwaZulu Natal from R1 495 per Reserve in KwaZulu Natal from R1 495 per person sharing. The rate includes full-board person sharing. The rate includes full-board accommodation at a four-star game lodge accommodation at a four-star game lodge and two game drives per day. Valid until and two game drives per day. Valid until April 30.● Coastlands Hotel & ResortsCoastlands Hotel & Resorts is offering a special Easter rate at Coastlands on the Ridge a special Easter rate at Coastlands on the Ridge Hotel in KwaZulu Natal from R640 per person sharing Hotel in KwaZulu Natal from R640 per person sharing per night. The rate includes breakfast and is valid from per night. The rate includes breakfast and is valid from March 26 to April 6. Book and stay for three nights and get a March 26 to April 6. Book and stay for three nights and get a fourth night free.

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NEWS


Jeanette PhilliPs

AVIS Rent a Car has placed its final vehicle orders for the Soccer

World Cup period and plans to increase its fleet by around 10% to 15% compared with the same period last year.

According to Wayne Duvenage, Avis ce, the company’s fleet requirement has been largely based on projections relating to the number of inbound visitors to South Africa

during the 2010 Fifa World Cup combined with clearer insight into the reduced local segment’s travel plans during the event.

Wayne said Avis expected a significant drop in demand by the local corporate market during the event and was therefore releasing a “sizeable” portion of its fleet for visitors and fans.

“Having greater clarity on the reduced local travel patterns has enabled Avis to revise its earlier forecast of a 30% fleet growth to

the 15% level.”Wayne said the challenge

was to call the expected number of visitors, with predictions ranging between 150 000 and 450 000.

“More specific to our industry is the need to establish what percentage of these visitors will rent cars, as opposed being bused or transferred. It goes without saying, pressure will be greatest at specific venues on peak demand days, just as the industry normally does

over Christmas in Cape Town, so customers are encouraged to book as early as possible.”

The company says it will not be overpricing its products for the World Cup period and that normal price yielding will be in effect.

“Rates will be no higher than is the case during local peak demand events such as the Cape Argus and summer season demand.”

Avis said it would be holding all its rates and setting fleet aside for its

local contracted customer base, adding a “small daily Soccer World Cup surcharge” to all rentals for additional logistical and manpower costs required during the event.

Avis also stressed the availability of its transfer services with its Point-2-Point and Chauffeur Drive divisions. It also said that, as a contingency, it could draw on an additional 700 to 900 vehicles from its one-year-old used-car operations if required. n

Avis is ready for the kick-off

Prices are down, consumer confidence is up and the bookings are flooding in for Insight Vacations. This was the word from ceo, John Boulding, on his recent visit to South Africa. New in 2010 are various unique destinations such as the Arctic Circle, Iceland, Morocco and more. Insight is also offering six first-class tours to Oberammergau. Meanwhile, Insight’s ‘Select’ programme provides itinerary flexibility by allowing travellers to leave their tour early or travel on the entire journey. Travellers are also able to manage their day as they wish. An orientation sightseeing tour is provided in each city and travellers are free to explore on their own or choose from Insight’s ‘Select Experience’ sightseeing packages. Tour directors are available throughout the entire journey to act as a personal concierge. Pictured here with John is gm of Insight Vacations, Sharon Marx Photo: Natasha Tippel

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TRAVEL insurance is no longer a nice-to-have but very much a necessity in today’s world.

Professional agents realise this and also recognise the various benefits of selling travel insurance to their clients.

“There is a greater awareness on behalf of agencies to have consultants trained,” says TIC md, George Novis. “Agents who take their business seriously realise that in order to give an all-round professional service to the consumer, they have to offer value-adds, such as assistance and information on travel insurance products.

“This way, their clients are not tempted to go to their competitors or use the Internet to book their leisure and business trips.”

One such agent, Monica Groseof PTS Travel, says: “If one is a professional travel agent, one does not have the choice of not selling insurance. It is an integral part of any holiday and overseas travel.”

Md of Travelmaster Midrand, Ivan Visée, agrees: “It is the most responsible and professional thing to do in order to ensure that the client has peace of mind.”

Insurance sales are also a great additional revenue stream for agents looking to earn commission. “The revenue generated from sold insurance policies is potentially great,” says George.

“In addition, client satisfaction levels are a lot higher and it provides an added value, preventing migration to the Internet and competitor agencies.”

However, selling travel insurance can be tricky as clients are not always aware of what insurance coverage they will receive should something happen.

“Most clients think they are sufficiently covered by their medical aid or ‘free’ credit card cover, never mind that they have no idea who to call in an emergency,” says Karen Swaby, independent consultant of Pentravel Cresta. “They also don’t realise that travel insurance doesn’t only cover illness, but baggage, personal liability, personal accidents, money loss and, especially, cancellation cover.”

Director of Constantiaberg Travel, Erika Frost, agrees: “Simply having credit card insurance is not always enough and does not always cover everything. There are lots of exclusions and excesses that clients don’t know about!”

Another problem, says Karen, is that clients claim they never get sick and therefore don’t want to waste money on travel insurance.

Gabor von Moricz, md of Von Moricz Bon Voyage Travel, says clients also complain that the policy is pricey.

“We tell them that if anything should happen, it is actually quite cheap.”

“Clients are unaware of the medical and hospitalisation costs in foreign countries,” says Ivan.

“You have to give them examples of the costs involved in some minor hospitalisation cases.”

Another problem is that when a client has a claim, they do not contact the insurance company but the agent, who they then expect to facilitate the whole claim, leaving a bad impression of the agency when the insurance company does not pay out.

“Agents have no legal liability to the client other than providing them with the correct information,” says George. “The agent provides an administrative service to the client, however, on buying insurance, the consumer enters a contract with the insurer (for example, TIC), clearing the agent of any responsibility.”

If a client should need or request advice on travel insurance, George advises that the agent refer him or her to the head office of the insurance company, where backup assistance is provided.

But this is not to say that a client will not try to sue an agency, holding them liable for misinformation. “That is why it is always important for agents to have a procedure and documents in place in the event of a dispute so that there is evidence of what procedures were complied with as well as a record of clients who have declined insurance, with proof of signature,” says George.

TravelWith health and safety risks increasingly highlighted in the media, With health and safety risks increasingly highlighted in the media, travellers are becoming more aware of their security when going abroad and agents can no longer afford to remain ignorant about abroad and agents can no longer afford to remain ignorant about travel insurance. Natasha Tippel reports.

Top selling tips

“Give examples of costs involved. Irrespective of the insurance offered by credit card companies, the excess is high and it is advisable to sell top-up insurance. The rates are extremely competitive. If the client refuses to accept travel insurance that has been offered, make sure he or she signs a document declining insurance.”Ivan Visée, md, Travelmaster Midrand

“Tell the client some horror stories about clients who were injured or ill and did not have insurance. Actual costs! Explain the importance of cancellation insurance if they have non-refundable tickets or 100% non-refundable land arrangements.”Karen Swaby, independent consultant, Pentravel Cresta

“Don’t push insurance if you know your client can get free cover from FNB or Discovery (if they are clients). This will quickly break your relationship with the client. DON’T sell just for the commission.”Angelina Mendes, travel consultant, Sandown Travel

“Familiarise yourself with every aspect of commonly required cover such as for pre-existing conditions, seniors and youth, and which cards allow top-ups for special needs insurance. It's worth the effort as it enhances your professional image.”Monica Grose, PTS Travel

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"The revenue generated from sold insurance policies is potentially great." – George Novis

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QUICK READ FOR bUSIESt pEOplE Wednesday March 10 2010 n 9

SATIB Risk Solutions has launched its SATIB24 Guest Crisis Call product.

The coupon is available to corporate companies and the local tourism trade, who will be hosting at least 30 guests over the period June 1 through to July 31. The coupon includes insurance cover to pay for incident management fees and defined medical evacuation and outpatient intervention costs, including trauma counselling.

“In our 20 years of providing risk solutions to the tourism and hospitality industry, we have found that the ‘Golden Hour’ between a critical incident occurring and appropriate intervention being implemented can be the

difference between life and death, or at the very least will have a positive impact on the likelihood of a claim for negligent liability being instituted against the client,” says Des Langkilde, md of SATIB Risk Solutions.

According to Des, the biggest factor is often the delay in getting a foreign guest’s travel insurance or medical aid to authorise medical intervention costs.

“SATIB clients already have access to the SATIB24 Guest Crisis Call facility as a value-added benefit attached to their insurance portfolio, so what we have done with the 2010 World Cup coupon is made this available to the industry at large and the take-up has been phenomenal.”

POLITICAL and financial instability remain features of the business landscape as a result of the recession, according to Aon Risk Services. The company launched its 17th annual Political Risk Map in a global webcast recently.

Miles Johnstone, director of Aon’s Political Risk team, explained: “Rising risk levels in 2009 have led to a significant volume of credit and political risk claims in international insurance markets, which is driving many of the 18 downgrades in this year’s map.”

Nine countries have been upgraded to a lower risk level: Albania, Myanmar/Burma, Hong Kong, Colombia, South Africa, Sri Lanka, East Timor, Vanuatu and Vietnam.

Eighteen countries have seen conditions worsen leading to a downgrade: Algeria,

Argentina, El Salvador, Equatorial Guinea, Ghana, Honduras, Kazakhstan, Latvia, Madagascar, Mauritania, Philippines, Puerto Rico, Seychelles, Sudan, United Arab Emirates, Ukraine, Venezuela and Yemen.

Sudan, Venezuela and Yemen have been added to the Very High category, joining Afghanistan, Congo DRC, Iran, Iraq, North Korea, Somalia and Zimbabwe.

Miles concluded: “Aon believes 2010 will see elevated political risk levels continue before an overall tendency for improving global business conditions becomes established. For many companies and across different sectors, including credit and political risk insurance, the business environment remains uncertain when trading with or investing in politically or economically unstable countries.”

WHETHER it’s your trip, your possessions, your luggage or your health, travel insurance – and most importantly, the right kind of travel insurance – has become an essential item to pack for smart travellers, says Tracey Krog.

Royal Caribbean and Celebrity Cruises offer clients the ‘CruiseCare Travel Insurance Programme’, which includes the following benefits: ● If your plans go awry and you cancel or your cruise is interrupted (for specified reasons), Royal Caribbean and Celebrity Cruises will waive the non-refundable cancellation provision of your cruise ticket contract and pay you the value of the unused portion of

your prepaid cruise vacation. ● The insurance provides coverage for independently booked air, accident and illness medical benefits, evacuation and baggage protection.● The CruiseCare Worldwide Emergency Assistance Programme provides 24-hour assistance, including pre-trip health, safety and weather information; assistance with travel changes; lost luggage assistance; emergency cash transfer assistance; medical consultation and monitoring; emergency legal assistance; emergency medical and dental assistance; lost travel document assistance; and emergency medical payment assistance.

AGENTS often shy away from selling travel insurance, intimidated by the fact that they are dealing with a financial contract and that it is complicated.

“Agents should be open-minded and seek training and education on the subject in order to present a more professional service to their clients,” says George Novis.

Erika Frost: “All agents must go through regular training and updates regarding insurance. Especially agents under 35 who think they know it all.”

Monica Grose suggests workshops that spell out exactly what the key differences between the offerings of the various credit cards are and the differences and benefits of the leisure policy as opposed to relying on automatic insurance from credit cards.

“Many agency owners now require agents to take part in an introductory course before they are even allowed to deal with clients,” says George. “TIC offers travel agents these

intense four- to five-hour introductory courses as well as ongoing product training on system management and selling skills.”

Tracey Krog, product manager and pr for Cruises International, says: “Our training manager, Debbie Georghiou, runs the cruise academy every year and highlights the importance of clients buying the additional insurance offered by the cruise line as it ostensibly acts as a ‘top-up’ to the international insurance policy the clients buy from South Africa.”

“The future is bright for travel agents but only for those who invest in their business, providing added value to their clients,” says George. “Consumers are more educated and aware of their rights.

“As society progresses, consumers demand more from their service providers and agents need to become more professional in their delivery by providing value-added services such as travel insurance.”

Training is a must!

Cruising? Make sure you’re covered

Elevated political risk levels continue this year – Aon

SATIB introduces Guest Crisis Call

Don’t let the unexpecteD spoil your clients cruise holidayspoil your clients cruise holiday

When your

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Expect the Unexpectedcouple insured with TICtravelled to London. They

needed to curtail their journeydue to the fact that the wife’sbrother died and they had toreturn to South Africa to attendthe funeral. Sadly, en route toSouth Africa from London viaDubai, the wife suffered a cardiacarrest and died. TIC’s assistancecompany arranged for her mortalremains to be repatriated andalso arranged a commercialrepatriation for her husband.

This case highlights a numberof important benefits of theTIC product:

1) Journey Curtailment (theirjourney was curtailed as a

result of the unexpected deathof a family member);

2) Burial, Cremation or Returnof Mortal Remains; and

3) Repatriation of TravelCompanion (the husband wasassisted with his return journeyto South Africa).

You never know what couldhappen while travelling. Makesure you sell your client a TICtravel insurance policy.

A

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NEWS


What's the best option – fly or drive?Melody Brandon

IT could be cheaper for soccer fans to drive than fly to their destinations

during the 2010 Soccer World Cup.

“It depends on the cost factor in terms of the time but in many instances driving to a match city will be far less expensive than flying,” says Avis ce,

Wayne Duvenage. In an exercise conducted by

TNW, a return flight between Cape Town and Johannesburg over match days could set fans back between R3 038 and R4 898 per person. If a group of four people were travelling together this comes to between R12 152 and R19 592.

If the same group rented a group B or C vehicle and

drove to Cape Town and back, they would be looking at a total cost of between R7 039 and R9 592, or R1 759,75 and R2 398pp respectively.

The rate includes the rate per day, free kilometres, estimated petrol and the estimated cost of toll roads.

“A trip down to Durban from Johannesburg and back, or to Bloemfontein and back would

be manageable in a day, but if you are looking to go to Cape Town, or Port Elizabeth you would need to plan to take a few days off to travel,” he said, adding that one of the benefits of road tripping would be the opportunity to see the country and to make a holiday out of the experience.

Peter Retief, brand manager at Europcar agrees,

saying the company has seen an increase in requests for car rental over the World Cup.

“For long-distance trips, such as Cape Town to Johannesburg one could argue that the convenience of flying outweighs the 1 500km drive. People should look at the pros and cons for both options and decide according to their needs and wants,” he says.

Match Saa Kulula Ba 1tiMe Mango

aviSgroup B vehicle: vW Polo/

similar. including daily rate and 500km free/day

euroPcargroup B vW Polo/similar,

including daily rate and 400km free/day

Budgetgroup c vehicle: toyota

corolla/similar, including daily rate and 200km free/day

JnB-PlZ-JnBMatch to be played on June 26 (travel June 25 and 27)

r3 674 Sold out r2 386 r2 223 route not served

charge: r2 462*estimated petrol: r1 800

*estimated toll fees (return): r180

total (estimated): r4 442


* estimated toll fees (return): r180

total (estimated) r6 778


*estimated toll fees (return): r180


JnB-cPt-JnBQuarter-final match

to be played on July 3 (travel

July 2 and July 4)

r4 898 via Kimberley. no direct flights available

r3 038 r3 229 r4 598 r3 242


*estimated toll fees return trip: r230








JnB-dur-JnBSemi-final match to be played on July 7

(travel July 6 and July 8)

r4 502return 02h00 r1 738 r2 454 r2 398 r1 121

charge: r2 232*estimated petrol: r900

*estimated toll fees: r319total (estimated): r3 451

charge: r2 769*estimated petrol: r900

*estimated toll fees: r319total (estimated) r3 968

charge: r2 163* estimated petrol: r900

*estimated toll fees: r319total (estimated) r3 382

cPt-JnB-cPtFinal match to be played on July 11

(travel July 10 and July 12)

r3 756 r2 338 r3 229 r4 598 r2 828 via durban

charge: r4 309*estimated petrol: r2 500*estimated toll fees: r230total (estimated) r7 039

charge: r5 958*estimated petrol: r2 500*estimated toll fees: r230total (estimated) r8 688




Disclaimer: Please note that these prices were quoted in February and are not guaranteed prices. The table serves to show estimated comparisons between driving and flying over the 2010 Soccer World Cup. Calculations include additional kilometres above free km/day.

Hilka Birns

AIRLINES will drop their fares in the next 30 days to fill empty

northbound flights, predicts Geneva-based Trafalgar Tours president and ceo, Gavin Tollman.

He told a Cape Town media briefing recently that Trafalgar Tours was also “trying to pressure the airlines” to do so. By his calculation, FIFA still needed to sell 750 000 tickets. “We will see fares crashing as MATCH releases more and more hotel spaces and it is our intention to be more aggressive to get South Africans to travel and experience Europe over the World Cup.”

Gavin said Trafalgar’s

2010 bookings had grown “exponentially” and were up 100% over the same period last year. Trafalgar’s South African bookings to Europe for June to July this year had “grown off the chart”. Bookings for the period after the World Cup were up 8% on 2008, “which means we have returned to normality”. He said this was because there was pent up demand for travel from people who put off travel in 2009 because of the recession. He said 2009 had resulted in an enormous shift in how people bought travel: they now booked late. In South Africa, people now booked one to three months in advance, whereas formerly they would have booked six to nine months in advance.

Speaking on the future of escorted touring, Gavin said 9/11 had resulted in a distinct change in travel patterns. The number of families – sometimes up to three generations – travelling together to long-haul destinations had doubled and they also travelled for a longer duration. Meanwhile the under-25 travelling age group was growing “exponentially”, he added.

He said Trafalgar’s ‘Family Experiences’ brochure had become the company’s single most successful product ever. The reason, he said, was escorted tours were hassle-free and allowed families to bond and youngsters to make new friends while on tour. n

Hilka Birns

AIR Namibia’s forward bookings at this stage show it cannot expect increased tourism from overseas during the impending FIFA 2010 World Cup, but the airline hopes an increase in South African visitors will make up for the shortfall.

Gm Southern Africa, Charmaine Thomé, says bookings during the World Cup are “very quiet”. She says the airline’s feedback from Germany and Austria is that fans from those countries will not attend

the World Cup because the flights and accommodation in South Africa are too expensive and because fans will have to travel such long distances to watch the various games.

Instead, Namibia is hoping to benefit from the World Cup through South Africans escaping the event. “We are hoping to see an increase from South Africa during this period as it is a cost-effective destination, which offers such diverse activities for families and couples alike,” says Charmaine. n

Airfares ‘could crash’ soonWorld Cup – no spin-off for Air Namibia

QUICK READ FOR bUSIESt pEOplE Wednesday March 10 2010 n 11

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n Dave Bunyard, director South Africa for African Sun Hotels, has resigned from the group, effective the end of February. Seventeen years ago he opened a representative office for the then Zimbabwe Sun Hotels in Randburg. Dave says he

has no definite plans for the future yet.

n Dijana Smal has been appointed to handle the day-to-day running of Abalone Lodge in Hermanus. She studied travel and tourism and has industry experience

in Hermanus. Dijana takes over the reins from Lizl De Bruin, who has relocated to Bonnievale.

n Michael Kewley has been appointed the new gm for the Fairlawns Boutique Hotel and Spa in Morningside,

Johannesburg. Michael’s experience includes positions at the Beverly Hills Hotel in Umhlanga, The Saxon boutique hotel and the Palazzo Hotel in Johannesburg. Michael takes over from Annabel Stanbury, who is moving to Spain.

THE generosity of Air France passengers on the airline’s inaugural

flight to New York in November last year has seen over R100 000 donated to a Cape Town-based charity, the FXB Project, which helps 240 youths aged 12 to 18.

Money raised from the auction of 380 seats on the flight has gone towards charities world-wide.

The François-Xavier Bagnoud-FXB International Cape Town After-School Programme aims to break the cycle of Aids and poverty in the city’s shanty towns by empowering young people with education and other critical life skills.

The Air France foundation, established in 1992, gives children and young people an opportunity to return

to school, to train and to interact with other children without letting illness or disability be an obstacle, says Clea Spann, Air France KLM sales director for Southern Africa and Angola.

“I was privileged to visit the Winnie Ngwekazi After School Programme in Soweto last year where the children expressed their dreams and love of life through music and poetry. We are confident that the sum donated to the FXB Project will benefit and enhance the lives of these children,” says Clea.

The cheque was handed over to a representative from the FXB Project at a press conference in Johannesburg celebrating the arrival of the first A380 commercial flight to South Africa on February 18.

AF pax help SA charity

The South African Vehicle Rental and Leasing Association (Savrala) held its annual Manufacturer of the Year award towards the end of last year. The theme of the occasion was 2010, with hired Diski dancers teaching guests how to do the Diski. Showing off his Diski Dance moves is Michael Tatalias, ceo of Satsa

Michael does the Diski!

jObS

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Agents still scepticalAgents still scepticalAgents still scepticalAgents still scepticalDo you think Siza Mzimela’s appointment as SAA ceo is a sign of better things to come for the airline?

n Yes 34%n No 66%

“Perhaps a woman ceo could make a difference.” Anonymous.

‘Give us a chance’ – SAA’s SizaFrom page 1 Government and industry leaders have applauded Siza’s appointment, saying she is, without a doubt, the best person for the job.

“I have the greatest amount of support for Siza’s appointment and absolutely back her. I have known her since she joined SAA and in her position as the chairman of the Airlines Association.

“I think she has all the qualities and business acumen to take SAA to new heights. She needs to build up a good team but I have no doubt that she has a strategy and knows what to do,” says Airlines

Association of South Africa ce, Chris Zweigenthal.

Board of Airline Representatives of South Africa ceo, Allan Moore, agrees: “I have found Siza to be a good leader; she is capable and knows what she is doing.”

Robyn Christie, ceo of Asata, says the organisation is “absolutely delighted” with Siza’s appointment.

“It has been far too long without a formal appointment.

“I commend the SAA board on their decision. Siza has credibility and experience within the industry and is well respected.”

Michael Tatalias, ceo of Southern Africa Tourism Services Association, says the appointment of Siza was an indication that government had heeded the call from the public and private sector to fill important positions with experienced people.

“It is great that SAA has a ceo with hands-on, relevant experience and the business acumen to run a successful airline,” he says.

The Tourism Business Council of South Africa says Siza’s appointment is not only key for SAA, but for the industry as a whole. n

Take a look at our exclusive one-on-one interview with Siza Mzimela on eTNW this week.

Natalia thomsoN

LUFTHANSA will delay until July 1 issuing ADMs for what it calls

“misuse of the booking system”.

The airline took an unpopular stance earlier this month when it announced the introduction of a “new fee” against agents deemed guilty of not adhering to the booking rules in various instances (see box below).

Failure to adhere to these conditions, it advised, would result in ADMs from €5 (R52) per segment to €100 (R1 050) per passenger.

An ADM admin fee of R200 would also apply.

Airline criticisedThe airline has come

under fire from the retail community, which states that an ADM cannot be used to collect this fee without talks being concluded to this effect.

Iata Resolution 850m states that ADMs can be

used for purposes other than collecting amounts or making adjustments to agent transactions provided consultation has taken place. Therefore, unless Lufthansa and an agency group or branch agree that ADMs can be used for this purpose, the airline would have to collect the fee by invoice.

But, says Gabriel Leupold, md Southern & Eastern Africa for Lufthansa German Airlines and Swiss International Air Lines, the airline is going ahead.

“Iata Resolution 850m provides that ADMs are used to collect amounts or make adjustments in respect of the issuance and use of tickets (STDs) issued by the agent. The non-issuance of tickets in time or the use of fake ticket numbers is, according to Lufthansa Frankfurt, a case that falls under this resolution.

“The same paragraph 1.2 in Resolution 850m provides that alternative uses of

ADMs may exist provided that consultation has taken place. Consultation does not necessarily mean that agents or agents’ associations have to agree.”

Trial periodLufthansa, he adds, will

give the market a chance to adjust by introducing a two-month trial period so that agent chains can ascertain the volumes anticipated.

“Airlines suffer huge monetary losses through the misuse of the booking system. An empty seat is a perishable and can never be sold again. A fake seat booking not only blocks the sale but it is also an additional GDS cost. To protect Lufthansa against these losses, the airline has been forced to revert to these measures.”

Lufthansa, says Gabriel, does not want to “punish” agents for mistakes. Rather, the airline hopes to prevent the “misuse” of the system resulting in “huge costs” to the airline.

The Three Cities team proved itself ready for 2010 at its recent workshops held around the country. The workshops focused on properties within a region in an effort to promote agents’ packaging of the properties together in a single holiday. This, says marketing manager, Barbara De Kock, will reduce hassles for agents as they will only have to deal with one central reservations centre. Pictured here (clockwise from left) at the Johannesburg workshop are Cynthia Mahwite, sales co-ordinator; Arno Strydom, sales executive; Craig Parvess, regional sales manager; Barbara De Kock; and Shaun Landing, group sales director

Three Cities makes booking easier

ADM penalties loom – LH

● Inactive segments: GDSs charge airlines for segments coded HX/NO/UN/UC if not removed from PNRs 24 hours before departure. ● Fictitious names: Bookings made without a real passenger as well as test bookings. ● Fictitious ticket numbers: A fictitious ticket number in the booking, i.e. not issued for

this specific passenger and routing. ● Fictitious groups: Individual bookings for more than 10 passengers travelling together. ● Fictitious reservations: Bookings without real passengers and made with any other intention than to sell a ticket. ● Fictitious segments:

Segments not needed and made with any other intention than to sell a ticket. ● Churning (ticket time limit bypass): Actions aimed to bypass the ticket time limit determined by the fare type. ● No shows without a ticket: Segments booked without a ticket being issued and not cancelled before flight departure. n

Watch out for…

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Travel News Weekly - 10 March 2010