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South Africa‘flush withopportunity’– VIRGIN ATLANTIC

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APRIL/MAY 2018ISSUE 275

THE MAGAZINE FOR SOUTH AFRICAN TRAVEL PROFESSIONALS.

P e r f e c t i n g i s l a n d h o l i d a y s f o r m o r e t h a n 6 5 ye a r s

F r e e C a l l 0 8 0 0 5 0 0 8 0 0g e n @ b e a c h c o m b e r. c o . z a w w w. b e a c h c o m b e r. c o . z a

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TIR Apr-May 2018 3/20/18 8:31 AM Page 1

he first budget of the Ramaphosa era didn’t do the domestic and inbound tourism industry any favours, even though the new president had em-phasised the importance of tourism – inbound, that is – to the economy and job creation in his acceptance speech.

Domestic tourism will feel the heat from the increase in VAT and the large jump in the fuel levy, a favorite and easy target for government, which will particularly hit short-break business and boost prices of products and services across the economy. And, as prices rise, the collection of VAT, of course, increases, regardless of the additional percentage. Suppliers are caught between a rock and a hard place as domes-tic suppliers feel the pinch and a worrying number of foreign visitors are commenting on the perception that South Africa, a long-haul destination, is becoming much more costly relative to packages available to international competitor destinations.Outbound travel, however, has benefitted from the Ramaphosa effect on business confidence and the resultant strengthening of the rand. Substantive measures to address corruption, gov-ernance and incompetence should continue to build confidence and investment.

That will not only stabilise the currency but lift the sentiment so crucial in motivating, particularly leisure, travel. As we head towards mid-year, the prognosis for foreign travel is significantly more encouraging than at the start of 2018.

Publisher’s Notebook

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INSIDEMore benefits for

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Seychelles is grow-ing its South Africa business through effective tradeinitiatives.

Lufthansa’s Direct Connect avoids the

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What may seem best value could be false economy, says British Airways’ Sue Petrie.

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INSIDE

6 Travel Industry Review | April/May 2018

ASSOCIATIONS

The survival of your businessdepends on being compliantBy Otto de Vries, Association of Southern African Travel Agents CEO

IT is getting harder, not easier, to work in travel. And in 2018, it is all coming to a head. The gentle warnings South Africa’s travel sector received over the past few years to comply with PCI DSS - Payment Card Industry Data Security Standard – and PoPI – Protection of Personal Information Act – have now become red alerts. The travel industry is working hard to become compliant, but a recent PCI DSS readiness survey conducted among members of ASATA indicated that fewer than 40 percent of those polled admitted they would be compliant by IATA’s March 1 deadline. The industry recognises that both PCI DSS and PoPI make business sense. That these are necessary additions to the travel landscape and are there to protect our customers, our employ-

“The gentle warnings South Africa’s travel sector received over the past few years… have now become red alerts.”Otto de Vries, ASATA

ees and travel companies. Compliance further enhances the unique selling proposition of travel companies; we look after our customers’ privacy and data because we are compliant and so you should trust us with your business. Our very survival depends on our ability to adopt responsible data protection and privacy practices, in an environment where fraud – both internal and external – becomes a greater threat every day. The whole premise behind PCI DSS is to protect card data from hackers and thieves. Under the new standard, scribbling a customer’s credit card details on a post-it note would no longer be acceptable. Collecting, storing, using and discarding data becomes something that must be done in a secure and safe way. And it is the same when it comes to PoPI. ASATA recognises its role in supporting the travel industry to comply with local and international legal and industry require-ments and will be rolling out a series of workshops and webi-nars tackling the topics of PCI DSS, POPI, data security and fraud, providing expert advice to help members prepare their businesses for this new reality. Along with these webinars and workshops will come resources with tips and frequently asked questions that can be used as a handy reference by travel firms re-engineering how they store and use data so that they ensure 100 percent compliance. The onus to comply rests not only with the owner or manager of a travel business. It falls on every staff member involved in

collecting, handling and storing a customer’s data. ASATA has urged owners and managers to enroll staff in the association’s training initiatives as part of the ASATA Professional Pro-gramme so that they can assist in essential compliance. Failure to do so may result in a fine, arrest or, worse, the clo-sure of one’s business. Whether you are ready or not, PCI DSS and PoPI will be the new normal in the very near future. ASATA’s role is to help get all relevant staff on board and to embrace the opportunities that come with compliance. Let’s work together to position ourselves even more as con-sumer-friendly and the champions in protecting our customers from data breaches and fraud.

Following the news that Hilton is to follow Marriott International to reduce agency commissions from 10 to seven percent on October 1, the American Society of Travel Agents expressed disappointment over thedevaluation of the relationship and made a veiled threat that it intended to defend the role of travel agents by highlighting suppliers, whose businesspractices recognise agents’ value. This was happen-ing, the association said, at a time when consumer usage of travel agents was on the rise in the US. It is also to raise concerns over supplier consolidation with the government.

INTERNATIONAL ASSOCIATIONS

Travel Industry Review | April/May 2018 7

ASSOCIATIONS

New technologies will transformthe passenger experienceBy Muhammad Al Bakri, Regional Vice President, Africa & the Middle East,International Air Transport Association

THE PACE of technological change is accelerating. Over the last few

years the travel experience has become more efficient thanks to new technologies such as mobile internet, artificial intelligence, virtual reality, big-data, internet of things and biometrics. Many more benefits are yet to be real-

ised, benefitting travel agents, their customers and the air-

lines. In 2018 the following new technologies will continue to trans-

form air travel:

Biometric technology A seamless experience through the air-port terminal could soon be a reality. IATA’s One ID project, with face, iris, or fingerprint recognition will provide the key. One ID creates a match between a unique biometric characteristic, a passen-ger’s passport and flight booking. Passen-gers can then proceed through terminal checkpoints, without having to show trav-el documents. Although a number of African countries and airports are adopting biometric tech-nology and Dubai Airport is pioneering the use of One ID facial recognition to improve traffic flows.

Airline New Distribution Capabilityand ONE Order New Distribution Capability will address the gap between how an airline displays its products and services on its own website, versus what it can do in the systems used by most travel agents and online travel sites. These are largely based on pre-internet technology dating back to the 1970s. They are not capable of easily supporting the rich content you find on websites. NDC is closing this gap through the development of XML-based (internet language) data transmission standard for communications between airlines and travel agents. Consum-ers will benefit from greater transparency and the ability to compare offerings between airlines, as well as to personalise their purchase. ONE Order builds on advances made possible by the NDC. It will result in the gradual disappearance of multiple reservation records associated with a ticket, as well as the e-ticket itself, and any other documents for optional services. This will be replaced by a single reference Order, just like you get when you order a product from an online retailer. As a result, travellers will no longer need to juggle between different

reference numbers and documents when they travel.

Artificial Intelligence Artificial Intelligence is already being embraced by the industry to improve the passenger experience. 14 percent of airlines and nine percent of airports use Chatbots with AI technology to communicate effectively with passengers. AI allows simple queries to be handled swiftly, freeing up customer service professionals to tackle more dif-ficult issues effectively. AI has the potential to revolu-tionise travel by providing access to a 24-hour personal travel assistant able to predict travel choices, knows preferences and can create the package.

Blockchain Few technological innovations have received as much interest in the past few years as Blockchain. Although this ingenious secure pay-ment mechanism came to prominence through the recent trading surge in cryptocurrencies, it is unquestionably an invention with immense potential for widespread application and one IATA believes offers benefits for passengers and airlines. Blockchain technology has the ability to make payments faster and more efficiently and IATA is exploring how it can be adopted. From the moment you search online for a ticket to the time of arrival, the airline is just one of around 26 business partners involved in the aviation chain. Every partner in that chain takes a profit margin. Apart from reducing the costs, advantages include greater transaction speed, resilience, and protection from fraud, since the parties involved in the transaction are no longer relying on a single third party as an intermediary.

Remote sensing technology To increase passenger comfort and reduce the risk of turbu-lence-related injuries, IATA is developing a turbulence-sharing information platform containing real-time, turbulence reports in collaboration with global airlines and remote sensing technol-ogy to make turbulence avoidance better. In total, these new technologies will transform the passenger experience. However, government regulation, resistance to change and cyber security challenges are issues that threaten the speed of development. But, inevitably, the passenger journey of the future will look very different from today.

*Some submissions edited due to space restrictions.

ASSOCIATIONS

SATSA urges collective actionBy David Frost, Southern Africa Tourism Services Association CEOTHE LAST two years have been phenomenal for inbound tour-ism, with overseas arrivals growing 18 percent in 2016 alone. Have we done anything differently, that we can directly link to that growth? The answer is no. We still have obstacles that are self-inflicted, for example unabridged birth certificates, visa regulations, and vehicle licensing. In 2017, overseas arrivals slowed to seven percent. Even more concerning is when we segment the growth by quarter, the seven percent growth has all occurred in the first six months. The second half of the year shows growth of 4.5 percent and key markets like the UK are now experiencing negative growth. Added to these are ongoing issues around rate-related chal-lenges with SANParks and Ezemvelo Wildlife. The one percent increase in VAT has brought its own issues, [such as] how this extra cost is absorbed through the traditional channel. Added to these, the water crisis, listeria, and the land issue have given rise to perception issues. The danger is that collectively these issues may result in South Africa being seen as a destination that is difficult to do business with. Operators in key outbound markets may even shift their resources to competitor destina-tions. It is then incumbent on us as the tourism collective – both the private and public sector – to get back onto a competitive footing. This entails dealing decisively with the ‘own goals’ and taking advantage of key opportunities that remain untapped.

These include: the potential benefits of adventure tourism; compliance around animal interactions and using that as a positive marketing tool; and dealing decisively with safety and security issues. Adventure tourism is one of our underrated hidden gems. The percentage of 2016 arrivals from our key source markets in Europe and North America between 18 and 34 average at 39 per-cent, the generation keenest on bungee jumping, sky-diving and hot air ballooning. We need to unlock the immense offering we have and position South Africa as a sought after adventure des-tination, as opposed to tourists coming for a leisure holiday and happening to include some adventure activities. The great thing about adventure tourism is that most of it happens outside of bigger cities. It is rural, immersive; and it is job creation. We also need to raise the profile of the importance of tourism in the economy. The good news is that we have a minister who listens and a great crowd at South African Tourism. The private sector relationship with SAT needs to be taken to a level where private sector input is sought at the inception of market strate-gy development. The SATSA conference takes place in Port Elizabeth from July 23 – 25, and the theme is ‘Transforming Geographical Spread’. The association urges input on any suggested panel discussion topics and speakers so that we can continue being proactive in the interests of our industry.

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NEWS

ASATA plans innovation summitTHE ASSOCIATION of Southern African Travel Agents has cancelled its annual member conference in favour of an innovation summit. The event will now be held in the second half of the year, most likely September, in Johan-nesburg. The member conference was originally scheduled to coincide with World Travel Mar-ket Africa in Cape Town this month.

Topics included in the innovation summit will focus on changes in distribution and the sourcing of content. Chief Executive Officer Otto de Vries com-mented: “We are hoping to share a bit of an idea about where the world is going. We are living in the golden age of travel. Never before have so many people chosen to travel and that number is growing.”

Research for ASATA’s first Travel Index market study was concluded in March, which will determine the size and state of South Africa’s travel sector. Results are still expected. Retailers have for years called for reliable data showing the size and potential of the market and the number of corporate and leisure trips taken annually.

E Preferred Hotels & Resorts CEO Lindsey Ueberroth and Executive Vice President Saurabh Rai visited the Boschen-dal Farm Estate near Cape Town, one of its local properties, during a nine-city tour to mark the group’s 50-year anniver-sary. There is a year-long campaign to mark the anniversary and expand the group’s profile in the South African travel trade. Preferred is to add more properties in Africa. Johan-nesburg is a priority market.

ASATA to relaunch Young ProfessionalsTHE ASSOCIATION of Southern African Travel Agents plans to revive its Young Professionals in Travel Programme before the end of the year. It will focus on ongoing skills development and target Travel Management Company employees under the age of 35. Networking events will keep young industry associates “ex-cited about a future in the travel industry”, said Monique Diez, who will be running the programme for ASATA. “The key focuses will be transformation and personal growth, which also supports ASATA’s training strategy. Transformation in middle to senior management is vital and members will gain value…” ASATA is also in the process of registering its first qualified Travel Practitioners, part of the ASATA Professional Pro-gramme, which is a broader campaign to promote professional-ism and continuous skills development. A Travel Professional (TProf) designation will be open for registration in due course. ASATA said it would work with members to develop a supporting curriculum for a third desig-nation, Certified Travel Professional (Cert. TProf), which will also include an assessment.

Eurowings won’t bebackEUROWINGS’ Cape Town – Cologne service will be suspended in October, at the end of the European summer season. One weekly flight to and from Cape Town was introduced for the first time in October last year. Eurowings also currently operates into Namibia.

IATA agencies worldwide affected by PCI DSS complianceTRAVEL agencies ticketing through BSP, must be able to prove PCI DSS compliance or risk having their customer card pay-ment method suspended. The International Air Transport Association has provided agencies with a PCI DSS wizard to assist with step-by-step instructions. Travelport and Forgenix also have self-assessment tools available. ASATA said there were approximately 60,000 IATA agencies worldwide which are subject to the new rules. At a recent regional meeting in the Western Cape, ASATA Chief Executive Officer Otto de Vries commented: “I think IATA wants to see us all working towards compliance. Don’t drop the ball… [and] don’t send emails with credit card details. It is not only PCI DSS but POPI (the Protection of Personal Information Act) that is going to be expected of you by law.” Travel agents will have less than one year to comply with POPI requirements once that Act has been signed.

Airlink suspendsPTA – CPTAIRLINK will keep its Preto-ria – Cape Town route, to be suspended on May 8, under review. The airline blamed oper-ational constraints and the poor state of the economy for the suspension and said losses were compounded by cut-backs in government travel.

WTM Africaadds investors’ forumWTM Africa introduced a Tourism Investors’ Forum this month in Cape Town, to explore growth opportunities for tourism.

gallery

E Silversea’s Silver Cloud, in its first season since being converted as an expedition ship, recently stopped in Cape Town after completing the Antarctic leg of its current voy-age. Conrad Combrink, Silversea Cruises Senior Vice Presi-dent Strategic Development Expeditions and Experiences, said bookings or its first expedition voyages had exceeded expectations and 75 percent of passengers were first-time clients, “illustrating the level of demand for a proper luxury expedition experience”. Silversea now has four expedition ships and, after the success of the Silver Cloud’s conversion, Mr. Combrink said it is considering converting its Silver Wind to ice class for expeditions. Pictured onboard: Michelle Bergset, Area Leader Flight Centre Travel Group; Sean Hough, leisure travel specialist; Gaynor Neill, Cruise Vacations; Vicky Steinhardt, Product Manager, Pentravel and Chad Le Hello-co, Creative Director, The Hello Co.

F A group of local travel agents visited all Beachcomber Mauritius resorts during a recent educational. Pictured: Le-mencia (Katja) van Niekerk, Pentravel Clearwater; Fernanda Maria Linder-Haber, Flight Specials Welkom; Wildi Smit, Pro-corp Travel and Tours; Shandri Viljoen, XL The Travel Profes-sionals; Vladi Wessels, Beachcomber Tours; Anel Mammoszer (van Schalkwyk), XL Flight Specials Centurion; Maria Cristina Singleton, Travel2U; Lize-Marie Greyvenstein, Flight Centre Associates; Lee Swan, Flight Centre Associates and Deborah Smith, Vacation Station.

E World Leisure Holidays Sales Manager Lesley Smith took top eTravel consultants on a Mauritius educational. Pic-tured (l to r) with Bobbi Ghoora from Shanti Maurice: Joanna Hutchison, Tidal Travel; Annolet Eybers, Travelexec; Jenni-fer Kutlu; JMC Travel; Isobel Siegel, Bel Aire Travel; Melenie Sansovini, EQ Travel; Kim Muller, Focus on Travel; Julia Dijkhuis, MD Travel; Alison Van Niekerk, Essential Travel and Sandra Meyer, Time2Travel.

H The Club Travel Group launched a new version of its Ourweb intranet. Users can interact by rating, com-menting and bookmarking articles and webinars. Spot-prize winners on launch day included Senior Ticketing Consultant Nqabakazi Simelela, pictured left.


F Pictured at the Radisson Blu Granger Bay in Cape Town, Jackie Adami (left) and Jane Davidson from Development Promotions with Nick Wilkinson, Norwegian Cruise Line VP and Managing Director UK & Ireland, MEA. Mr. Wilkinson hosted 100 travel agents at Gate 69, with a focus on the line’s new ship, Norwegian Bliss and ‘floating resort’ prod-uct concept. See page 21 for details.

F At Air Mauritius’ recent year-end awards evening, Flight Centre Travel Group was named Top Market Share Partner and Beachcomber Tours Top Performer overall. Pictured (l to r): Wouter Nel, Air Mauritius Sales & Marketing Manager with Vito Polo, Carolyn Dreyer and Silvana Polo, Beach-comber Tours; Shiv Koonjoo, Air Mauritius; Enid Maullin; Joanne Visagie and Pete Munro with (front) Terry Munro and Ettienne Walters, Beachcomber Tours and Carla Da Silva, Air Mauritius.


Virgin prioritisesJohannesburg routeCapitalising on SAA’s cutbacks, Virgin says South Africa is ‘flush with opportunity’

AIRLINES

WITH an increased schedule from South Africa and an increase in premium cabin capacity, Virgin Atlantic is to grow connect-ing business over London. The trade is key to making that strategy work, through corporate business and new economy ticket categories geared for the leisure market. In terms of its size, Virgin puts more of its resources into South Africa than any other major international airline. A second daily service between Johannesburg and London Heathrow will be added from October, operated by an addition-al Boeing 787-9 aircraft. It will mean 188,000 more seats on the route each year. Liezl Gericke, Head of Middle East & Africa for Virgin Atlan-tic, said there was already not enough capacity in Upper Class to meet demand. “The reality is, South Africa is a market that is doing very, very well for the business. Just considering what is happening in our country at this moment in time, we feel extremely excit-ed about what is to come. Business confidence is looking very strong… The [increase] is hugely meaningful. This is the only route in the world that we have a double service.” There are also three new ticket types in economy: Economy Light, Economy Classic and Economy Delight. The new flights will offer 36 Economy Delight seats on each service, with priority check-in and boarding, free seat selection and 34-inch extra legroom seats. Virgin has leased its second slot from South African Airways, which reduced frequencies in a bid to stem losses earlier in the year. “We have actually capitalised… When SAA announced its [re-

duction], it gave us a chance to revisit the route,” Ms. Gericke said. Arriving at 05h40 local time, the additional service will be the first Heathrow flight to land each morning “making it perfect for business travellers or those with onward connections to the rest of South Africa and greater Africa”. Flights to London have been timed to enable customers to easily connect onto flights with Virgin Atlantic and Delta to over 200 US destinations. New York is rated the most popular connecting destination out of Heathrow, with a flight every two hours, and there are other good connections to the US East Coast. Virgin also sees opportunity to grow connecting business to Edinburgh and Aberdeen. ACSA’s Chief Operating Officer, Fundi Sithebe, commented: “OR Tambo International Airport... stands to benefit from these additional seats at such a critical moment where airlines are looking at capacity rationalisation as global oil prices are surging. “Moreover, with over a third of North American travellers connecting through European gateways to/from Southern Afri-ca, the additional flight will enhance Virgin Atlantic’s transat-lantic connectivity and attractiveness with its partners.” By the end of this year, Virgin will operate a fleet of 13 Boeing 787-9 aircraft, including the two to South Africa and four new A330-200s have been acquired for expansion. “The only new route is technically Johannesburg, but we are repositioning aircraft on other routes… ramping up service to other cities”. However, new international routes are “always, always in planning”.

by Sarah Cornwell


airlines

VIRGIN Atlantic’s double-daily schedule will cater for demand and boost connecting business across London, but there is also untapped opportunity for through business from other parts of the region. Liezl Gericke, recently promoted to Head of Middle East & Africa, said the airline would work directly with TMCs to fill the extra seats but “Johannesburg to London fills… very quick-ly. Having an additional flight will give us far more through-fare opportunities. Any other regional opportunities we have seen, we haven’t been able to take… Think of all of the beyond points.” Ms. Gericke explained Johannesburg was consistently one of the airline’s top-performers. “And that’s on the entire network… We are not saying it is going to be easy to sell two aircraft; but we feel very confident.”

New service will boost connections

E There will be 36 Economy Delight seats on each service, with priority check-in and boarding, free seat selection and 34-inch extra legroom seats.

E Virgin Atlantic has introduced three new economy ticket types: Economy Light, Economy Classic and Economy Delight, in line with customer preferences.

Along with the new economy ticket types, Premium Economy has been rebranded Premium. The cabin features a different seat, recline and separate meal service. Volumes out of Johannesburg and Dubai are boosted by behind traffic but there are several SADC countries on the airline’s radar. “Zimbabwe does well for us, Zambia, Malawi… Namibia is an opportunity market for us. Through traffic is difficult for Lagos [as] the airport is limited and can’t take transit traffic.”

“The Johannesburg route never runs at less than 90 percent capacity, and that’s

all cabins. By aviation standards, that is a little bit unheard of.”

Liezl Gericke

“At the moment, the Johannesburg route never runs at less than 90 percent capacity; and that’s all cabins. By aviation standards, that is a little bit unheard of. We simply don’t have enough seats for our TMC and corporate customers, and that is both ways, inbound and outbound.” Virgin’s new economy products and WiFi roll-out, now avail-able fleet-wide, is part of a £300-million investment programme and product strategy. “Each market is quite unique. Nigeria is a very, very, very strong performing market for us but it is a complicated trading environment… [Problems with] repatriation of funds is rearing its head in certain markets.” A return to Cape Town was being assessed on an ongoing basis, she said. “Johannesburg is quite opportunistic. It is a market we love and are deeply passionate about.”

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Affordable fares boost South AmericaLATAM has extended its South Africa schedule to five weekly flights between Johannesburg and São Paulo throughout the winter season, adding more capacity and affordable fares. The airline has connections to 120 destinations in Latin America and its re-entry into South Africa has revived tour-ism to South America. Wally Gaynor, Club Trav-el Managing Director said LATAM “lessened the impact” of South African Airways’ decision to drop capacity on its double-daily service. “What LATAM really did… because of their network and reputation in Brazil/South America, was put South Africa on the map and front of mind for travellers in South America as a destination [and] what has really had an impact on travellers to and from Cape Town in particular, is the excellent fares and quick connections offered by TAAG Angolan Airlines, to/from Cape Town/Johannesburg to São Paulo…”

E Argentina was part of LATAM Airlines’ recent Destination of the Month campaign. The airline partnered with the Ar-gentine Tourist Board, offering discounts on regional flights. LATAM will operate five flights per week between Johan-nesburg and São Paulo this winter. Pictured above: Iguassu Falls, in Argentina.

He said business to South America had grown “mainly because of affordable fares” and on long routes via Ethi-opia, Turkey and the Gulf, because of available fares and

the opportunity to stop over en route, particularly in Istanbul. Rio and Buenos Aires are top sellers for leisure and São Paulo for VFR and business travel. He said more destination awareness, particularly from tourist

boards, would help retail businesses sell more of South America. Leisure and adventure travellers are a target market, while inbound business to South Africa stands to benefit. Brazilians, for example, spent US$2-billion on trips overseas in January 2018, an increase of 26 percent. Trafalgar has a 12-day “comprehensive exploration of all things South America” package, visiting Rio de Janei-ro, Iguassu Falls, Buenos Aires and Santiago. South America Samba, a CostSaver tour, is from R20,644 and visits Rio de Janeiro, Buenos Aires and Iguassu Falls. Trafalgar’s Monkeys, Jungles and Volcanoes, is an eight-day package, from R24,605. A Young Travellers Dis-count of up to 10 percent is available, as well as an Early Payment Discount.

Thompsons Holidayshits 40-year milestoneby Joanne Adolphe, Thompsons Holidays CEO

THOMPSONS Holidays is celebrating 40 years of service to the travel industry on a high note. From small beginnings as a ‘basement shop’, to an industry employing hundreds, Thompsons has grown into a multi-faceted wholesaler. We sell the world – but not just anything. As travel spe-cialists, Thompsons seeks out the best.

It’s all about the peopleOur product and contracting teams are always on the hunt for enticing hotels and resorts and excursions, at affordable prices. Reservations teams are trained locally and on-site to ensure they are able to offer agents up-to-date information. Similarly, agents are invited on Thompsons Universities educationals to experience the destination.

Refocus and looking ahead We are always looking ahead and refocusing to ensure we are proactive, up to date with new trends and the first to offer clients the latest products.

Online and social mediaEasiclick, our online portal, gives agents direct access to our South Africa, Victoria Falls and Mauritius products with in-stant availability and prices. This is especially valuable for ITC agents who work random hours. Daily updates on social media also keep wannabe travellers in the loop.

Looking back The travel industry has had a tough time since the downturn of 2008, but we have found innovative ways to keep prices attrac-tive and help agents close sales. Despite a punishing exchange rate, Thompsons ended the financial year on a high note with great results - a fitting birthday gift from the travel trade.

New developmentsThompsons Holidays is now fully PCI DSS-compliant, which reassures agents booking with us.

WHOLESALE


E Pictured at Thompsons’ 40th anniversary awards evening, from left: Vanessa de Stefano, General Manager Reserva-tions; Michael Tollman, Chief Executive Officer, Cullinan Holdings; Kuben Moodley, Top Independent Reservations Consultant and Joanne Adolphe, Chief Executive Officer, Thompsons Holidays.

E Pictured above, from left: Angela Wood, General Manager Sales; Kirsty Knott, Top Sales Executive (joint); Michael Toll-man; Given Mashaya, Top Sales Executive (joint) and Joanne Adolphe.

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seychelles

World Leisure Holidays has seven nights at Paradise Sun (half board) from R32,650, valid May 2 – June 22, 2018. Seven nights half board at AVANI Barbarons is from R26,850. Both include flights, transfers and approximate taxes.

The Holiday Factory has seven nights at AVANI from R19,060, with a 35 percent early bird special. Valid September 1 – Oc-tober 31. Includes flights, breakfast daily, accommodation in a standard room and return resort transfers.

Seyunique has seven nights at Paradise Sun, including din-ner and breakfast daily, taxes, and transfers, from R56,869 for two adults sharing.

Thompsons Holidays has seven nights at Paradise Sun from R28,552, including breakfast and dinner daily, bonus added value and flights and transfers. Valid April 9 – June 19. Ref-erence: TH1936310.

BEST BUYS

Seychelles campaign paying dividendsAS LOCAL travel agents become more familiar with Seychelles through a concert-ed trade marketing campaign and the islands shake off their exclusively pricey image, visitor numbers from South Africa are steadily increasing and the islands’ suppliers are showing growing interest in this market, backed up by local tour wholesalers here. 115 islands make up Sey-chelles, each different, some still totally uninhabited, but most visitors and packaged breaks set off from Mahé. Non-stop flights operated by Air Seychelles are preferred but alternative routings are

possible via Ethiopian Airlines and, now, for the onward trav-eller, British Airways. Praslin is a short air or boat transfer from Mahé and home to one of two Contance Hotels and Resorts properties, the Constance Lemuria (Ephelia is on Mahé). Paradise Sun is a popular four-star option on Praslin, good value and superb location. An overnight on Mahé is not necessary if customers are booked to stay on Praslin, however, accommodation is needed for outlying islands. “If guests are going to Praslin, they can connect on arrival,” explained Margaret

Park, Product Manager, The Holiday Factory. “The flying time between Mahé and Praslin is around 15 minutes. If they are visiting any other island and are planning on going straight there, they have to overnight on Mahé, as the only flights that operate late are those be-tween Mahé and Praslin. The ferry service also does not operate at night. The same ap-plies for the morning return flight back to South Africa. You can connect from Praslin but if staying on any other island – with the exception of Cerf and Silhouette – you need to return to Mahé the night before,” said Ms. Park. “Fortunately Mahé has a good variety of hotels from five-star to simple accom-modation for the one night,” added Melanie Floor, Exclu-sive Serenity, representative for Frégate Island Private. There is still growth poten-tial to book more twin-stay packages, which take in two or more islands, although, currently, stays of five to sev-en nights are requested most. “With the possibility of is-land hopping, Seychelles also offers a great variety for those who want to explore different islands... something that not a lot of other Indian Island destinations can offer,” Ms. Floor commented.

Jade Crocket, representa-tive for Constance Hotels and Resorts said: “The top selling resort for the South African market is Constance Ephelia… two main beach-es, five restaurants, on-site adventure activities, such as zip-lining, abseiling and kay-aking through the mangrove forests… very spacious junior suites and family villas, to hilltop villas overlooking the north beach. “Constance Lemuria is rated among the Leading Hotels of the World [and] personifies the island of Praslin with its protected forests and hidden beaches. The resort is the home of the only 18-hole championship golf course in the Seychelles and one of the most beautiful in the world…” She maintained: “The Sey-chelles tends to be higher in price than Mauritius, but once a travel agent sees and under-stands the destination, they will be able to sell it more. It is a true value-for-money destination.” The Seychelles Tourism Board’s annual product road-show will be held in Johannes-burg on July 17; Durban July 18 and Cape Town July 19. The islands experienced a 17 percent increase in arrivals from South Africa last year and more growth is forecast in 2018.

by Sarah Cornwell

Constance Lemuria on Praslin.


RETAIL groups will need to be convinced of real shared ben-efits before direct connect distribution agreements become commonplace in this market but Lufthansa Group’s first deal with Tourvest has illustrated a desire for personalised deals and exclusive offers. Tourvest was the first TMC in South Africa to establish a Direct Connection with the Lufthansa Group in March, and TravelIT, Tourvest’s online technology platform, is the first B2B online travel management platform to complete the full end-to-end Direct Connect integration. The agreement circumvents a €16 distribution surcharge for GDS and non-NDC enabled bookings for the German group’s airlines, Lufthansa, SWISS, Austrian Airlines and Brussels Air-

“This forms part of a long-term strategy to use technology to shorten the supply chain and reduce the cost of travel…”– Philip Katz, TravelIT

report

Lufthansa answers criticswith Direct ConnectTourvest Travel Services is first SA retailer to plug inby Sarah Cornwell

lines and provides access to exclusive offers and inventory. Tourvest Travel Services Chief Executive Officer Morné du Preez said that created a compelling competitive advantage. “In the future TMCs will be able to access specific sales promotions or discounted ancillary products via the Direct Connect distribution channel to offer onto their clients,” explained Lufthansa Group General Manager Southern Africa André Schulz. IATA’s NDC is at the centre of the carrier’s distribution strat-egy and he said differentiated offers would be developed in line with customer preferences. Philip Katz, CEO of TravelIT commented: “By offering our customers direct booking access into a major international airline group, we are now able to offer a wider range of flight options to customers at a reduced price. This forms part of a long-term strategy… to use technology to shorten the supply chain and reduce the cost of travel for our 300,000-plus South

African corporate and public sector travel bookers.” Other South African retailers are pursuing similar projects and Lufthansa said it would provide costs and technical re-quirements to potential partners. The airline was subject to widespread criticism and threats by retailers to offsell when its €16 distribution surcharge was in-troduced in 2015 but Direct Connect partnerships evolved from discussions with retailers to create a new middle ground. Dr. Schulz claimed the digitalisation strategy and “content freedom” benefitted all parties. He said Direct Connect partnerships might require advanced technology but “Tourvest comes with a solution that fits in very nicely with the requirements… I would guess that they are not

the last. It is an important signal. This is not only a global topic; it has reached South Africa.” “The biggest complexity for me is the more sources I have got to go to [to book] the more time consuming it is going to be. Once we hit Europe, there are hundreds of flight options… We are back in an age of very human intensive way of doing things. Through our travel technology, it is right there in front of me,” commented Mr. Du Preez, “… but I’m not going to do this for every single supplier.” He maintained: “It is a partnership. Ultimately, the extent of the partnership is going to be what the result is: what we are able to sell our customer... We want those sorts of partners, who see South Africa as a value market.” Mr. Kalitz said: “South Africa is able to compete with levels globally. The service delivered here is the same as what’s being delivered worldwide.” “If not better and faster,” Mr. Du Preez maintained.

H Through the Direct Connect partnership, TTS customers will see more inventory and special Lufthansa Group deals. Pictured (from left): Morné du Preez, Tourvest Travel Services CEO; An-dré Schulz, Lufthansa Group GM Southern Africa and Philip Katz, TravelIT CEO.

Congratulations to Jenny Voigt from The Travel Chain in George, who was spotted with her TIR at the cave town of Matera in Italy. Jenny wins an American Tourister Soundbox 55cm Spinner valued at R2,299!

One look at American Tourister’s Soundbox range of luggage makes you feel like travelling around the world! Soundbox is the brand’s first expandable hardside zipped case, offering maximal space and comfort, offering a variety of special features to make your trip even more legendary: integrated TSA lock, expandable, and with cross ribbons on the top and bottom com-partment. The fine matt texture offers more resistance against scratches, ensuring minimal stress and maximal fun. Your American Tourister Soundbox suitcase will be the eye-catcher of the luggage belt. Available from leading luggage stores nationwide or online fromwww.houseofsamsonite.co.za

With TIR

Email photo entries to:[email protected]

training

Training is key to growthby Craig Reid, Group Chief Executive Officer, Fuel OnlineWHAT does it mean to be competitive? To have an advantage? Is it the quality of the product you repre-sent? Through the discount you can tolerate? The expo-sure you are able to garnish? And why do some compa-nies out-perform others by 300 percent? How is it that in a stable market, selling the same products, we are forced to slash earnings to differenti-ate ourselves? The only true differentiator a travel agent is able to offer is a memorable, hassle-free experience. Capturing hearts and minds is the single big-gest differentiator and is the focus of this column. Front line consultants sell the value able to be captured from the millions of rands of advertising and mar-keting invested by suppliers and their own retail organi-sations. Vast sums are spent to mine this opportunity but ultimately rely on two prima-ry factors: consultants need to want to achieve and need to have the capabilities required to extract as much value as is available. In retail, success requires a

clear, consistent and sus-tained message. High staff turnover, scarce experienced staff and an ever more diverse audience means that creating consistent performance is increasingly difficult. Being able to solve this chal-lenge is only half the puzzle. Once people are complete-ly aligned to the goals of an organisation, there is a need

to ensure they are actually able to execute the tasks required effectively and efficiently. If they are unable to, business falls short. Capa-bility is the driver. Being capable of extracting value is the means of growing revenue – regardless of mar-ket conditions. If businesses are more capable than their competitors, they prevail. Challenges shared with competitors, including suppli-ers, are: B Internal expertise to drive alignment and capability;B Ongoing BBEEE require-

ment changes;B Ongoing updates on gov-ernment skills development requirements;B Time, travel, accommoda-tion, printing, food and venue costs to reach all retailers regularly enough to effect change;B High staff turnover;B Frequent product changes;B Legislative changes re-

quiring ongoing training and communication to everyone, all the time;B Training material is always out of date, inconsistent or sporadic. South Africa’s travel in-dustry is highly competitive and price sensitive but it is a lucrative market. The only question is how much market share each business and con-sultant is able to secure. The most effective vehicles for reaching the market are af-finity to a brand and product and the capability to capital-ise on marketing. If agencies

* Fuel has built online training academies for Toyota, GM, Sanlam, En-gen, Coronation, Shoprite and Mercedes Benz. For more information call:087 351 5222

Fuel Online, South Africa’s premier online training provider is offering all TIR readers a 15 percent discount off all of its retail, sales and customer service titles, as well as 25 percent off all of its critical life-skills titles in order to make them available to even the smallest businesses.


and suppliers can cost effec-tively, secure commitment and loyalty, develop skills and drive the ability to earn more, they will claim a bigger share

of the market. Leveraging technology to achieve this has been the cornerstone of all Fortune 500 companies. Fortunately, using new technology for consultants to learn and for companies to reach staff and independents on a cost effec-tive basis is now possible.

product update

SINGAPORE AIRLINES BOOSTSSOUTH AFRICA SCHEDULESINGAPORE Airlines has supplemented its daily Johan-nesburg schedule with addi-tional flights on a Wednesday, Friday and Sunday between July 1 and August 31. A Cape Town service via Johannesburg now operates daily. The new flight, SQ 481 will depart JNB at 19h55, arriving

in Singapore the following day at 12h20. SQ 482 will depart SIN at 14h00, arriving in JNB the same day, at 18h40. The airline has received the first of 49 new Boeing 787-10s (pictured) which will be used for flights up to eight hours and is the launch customer for the new aircraft – 20 777-9s are due in 2021/22.


BEACHCOMBER HAS KIDS COVEREDBEACHCOMBER Tours is promoting value-added pack-ages for travel to Mauritius with children, for travel into 2019. Two children under 12 years fly free (pay only airport taxes) with free business class lounge access for the family from April 10 – June 21; July 17 – September 27; October 9 –December 7, 2018 and January 9 – March 12, 2019. Valid May 1 – October 8, up to two children under 18 years of age stay free when sharing with parents at select resorts. Breakfast, dinner and all-in-clusive meal options is free for

qualifying children. The specials are in addition to other current promotions, which include free lunch for the family at Trou aux Biches, Paradis and Dinarobin mid-year and a MRU2,000 food and beverage voucher per couple at Trou aux Biches, Paradis and Dinarobin, valid for seven-night, half-board stays. Save 20 percent on land packages with 60-day advance bookings. A 10 percent sav-ings applies for land pack-ages of 12 nights and repeat customers qualify for an additional five percent.

NEW TRAVELPORT SOLUTION TACKLES AIRLINE FRAUDTRAVELPORT has partnered with ACI Worldwide on a new fraud control and settlement solution for airline customers – Travelport Authorize Plus. The airline industry incurs losses of around US$1-bil-lion per year due to fraud, based on calculations by the International Air Transport Association. The new solution offers real-time protection, detailed, online reports, fraud screen-ing of card payments used to

purchase air tickets via Trav-elport connected agents and the ability to flag and prevent ticket issuance. Derek Sharp, Senior Vice President and Managing Director of Air Commerce at Travelport, said another major advantage was that the solution meant fraud control management could be applied without airlines or agent customers having to do any major development or change workflow processes.

QANTAS FIRSTOZ–UK NON-STOPQANTAS has started a new Perth to London service – the only non-stop link between Australia and Europe and the fastest connection between the two continents.

G Pictured below: QF9 Perth to London.F Pictured right: In 1947, the Lockheed Constellation was the first aircraft to operate the Kangaroo Route, a jour-ney which took four days.

COSMOS ADDS TIMELESS JAPANCOSMOS Holidays has added a 10-day Timeless Japan tour to its 2018 programme. The itinerary features various UNESCO World Heritage sites and popular Japanese gardens, with authentic ac-

commodation. Cost is from R51,770 and includes sightseeing, guide, transport in private coach, train from Mount Fuji area to Kyoto, daily breakfast and one lunch.

AVALON LAUNCHES 2019 PROGRAMMEAVALON Waterways has added six new itineraries in Asia and Europe for 2019, as well as new all-suite ships and more flexible booking categories. Highlights include an eight-day Active Discovery on the Rhone itinerary, with

underground wine tasting and a canoe trip through Gorges de l’Ardèche, and a 13-day Colourful India & the Ganges River option, from Delhi to Kolkata. A discount of US$2,500 per couple on new bookings for travel in 2019.

SILVERSEA LAUNCHES 2020 WORLD CRUISESILVERSEA’s World Cruise 2020, visits 32 countries and all seven continents, operated by Silver Whisper, leaving Fort Lauderdale on January 6, 2020. It is the first time any world cruise calls at every continent.

Packages include round-trip business air travel. Suites from US$62,000 pp. Gaynor Neill, General Man-ager of GSA Cruise Vacations said: “The first South African passengers have just con-firmed their place…”

report

Norwegian seesmajor SA growthSA is a focus market and second worldwide for incentives bookings, MICE ‘massive’NORWEGIAN Cruise Line recorded triple digit growth in the South African market in 2017 and Nick Wilson, Vice President and Managing Director UK & Ireland, Middle East and Africa, said the company has forecast similar growth this year “off a high base”. The line’s newest ship, the 4,000-passenger Norwegian Bliss, will debut this month. It will sail to Alaska, the Caribbean and the Mexican Riviera from June. Mr. Wilkinson claimed: “Our competition is the land-based resorts… ‘Norwegian Mauritius’; that’s who our competition is.” South Africa is the third biggest producer of multi-gener-ational business and second in the world for incentives. He described the incentives market and the MICE sector as “stag-

* See our June/July issue for a full report on the Norwegian Bliss’ first sailing and onboard highlights for sale.

“Our competition is the land-based resorts… ‘Norwegian Mauritius’; that’s who our competition is.” – Nick Wilkinson

gering… massive”. Norwegian also recently took the step to extend its reach in neighbouring countries, with its first Namibia roadshow and sales are also up from Botswana and other neighbouring countries. Mr. Wilkinson maintained travel agents were “cru-cial” and “a lifeline” for the cruise business with “very clever, creative marketing techniques” to help agents convert more business.

E Norwegian Bliss innovations and highlights include new dining options, the longest racetrack at sea, open-air laser tag, a 180-degree custom observation lounge, outdoor, alfresco dining on the ship’s promenade and headline shows including Jersey Boys.


industry view

No room for complacency,even if you have direct flightsBy Sue Petrie, British Airways Commercial Manager for Southern Africa

A TRAVEL colleague told me of a lesson he learnt many years ago

when he had booked a trip to London. It is that sometimes what may seem the best value can be a false economy. Direct services to the United Kingdom from South Africa,

which remains one of our most popular overseas destinations,

usually cost a bit more than those that operate via a hub in Africa, the Mid-

dle East or Europe. That is because there is more demand for direct services. It is quicker, easier and more convenient to fly directly from here to London than it is to break your journey, disembark from one aircraft and catch another. The price differential on the route is effectively compensation for this inconvenience. At face value this makes the indirect route a practical option for people who place a premium on price and less so for those who value time and convenience. None of this is new or particularly insightful, but it does sometimes give rise to assumptions that are worth exploring. One of these is that leisure travellers will always gravitate to the best value and business and corporate customers will prefer the direct services. That is simply not true. The direct carriers on the SA – UK route fight as hard for both markets as their competitors. It is why we have just introduced upgraded in-flight features on the South African routes. Luxury bedding and new amenity kits have been available on our Johannesburg services from the end of February and on Cape Town flights from early March. We have also added service enhancements for Club World customers.

In addition we will be refurbishing our Johannesburg lounge at the end of the year, bringing it in line with the existing Gal-leries Lounge in Cape Town. On Johannesburg, there will be all-A380 services this winter, adding 680 seats a week to London. And we are not ignoring World Traveller customers. In Janu-ary we introduced an expanded menu, providing more quantity and quantity as well as snack options throughout the flight, a second meal and complimentary drinks. We are not misled by the conventional wisdom that direct, overnight services somehow give us an unassailable advantage. We are continually investing in products and services and com-pete for every sale and work hard to keep every customer. In a competitive market, customers can assess the offerings, weigh these against their requirements and make their choice. We will do everything we can to ensure that before they make that decision, they have considered the benefits of a direct, overnight flight to London, the possibility of a good night’s sleep, a quality meal, the value of their time and the relative cost. Which brings me back to my colleague. As a struggling stu-dent he opted for the cheapest package, which involved routing via Paris and catching the hovercraft to Dover and then a train to London. Besides the saving, he thought crossing the Channel by hov-ercraft would be novel and he would get to see the White Cliffs before arriving in London. As things turned out, the hovercraft service was cancelled due to gales in the Channel. This necessitated a night in a cheap Paris hotel, dinner and breakfast, before catching a ferry across a still rough Channel. Not only did he arrive in London later and poorer than if he had booked the direct fares, but also still distinctly queasy from the ferry crossing. He has always chosen the most direct route since.

H BA has introduced an expanded menu for World Traveller customers as well as snack options throughout flights.

H_41771SIAT_A350_TIR Mag_SA_210x297_Mag_28Mar.indd 1 28/3/18 6:12 PM


ADVERTORIAL

For more information on Delta, please visit www.delta.com or follow @Delta on Twitter

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Keep connected Imagine being able to say a quick ‘hi’ from the sky… Delta offers free mobile messaging network-wide via iMessage, Facebook Messenger and WhatsApp. The airline also has one of the largest Wi-Fi connected fleets, with 2Ku satellite technology installed on international flights to give customers the speed they need to work – or surf – all the way to the U.S.A. Flights are more entertaining with Delta Studio’s® vast se-lection of movies, TV shows, music and games. Customers can watch on seat-back screens or stream directly to a laptop, tablet or smartphone with no Wi-Fi charge. But if they do need power, there’s a supply at every seat.

Same airline connectionsFrom Johannesburg, customers connecting in the US are as-sured of Delta’s great service from start to finish. Delta is the only carrier to offer same-airline connections to over 200 destinations across the US and beyond. Meanwhile, codeshare flights from Cape Town, operated by Delta’s partner KLM, offer convenient flight options to North America via Amsterdam.

Peace of mind The airline has invested US$50-million in RFID baggage track-ing technology so customers know where their bags are from check-in to baggage carousel. Notifications via their mobile phone keep them updated on their bag’s whereabouts, so they can relax and enjoy their flight.

More rewarding By joining SkyMiles, Delta customers earn miles when they fly on Delta or its partner airlines. It’s free to sign up and customers can turn their miles into flights, upgrades and other rewards. Meanwhile, SkyPriority across Delta’s network offers a smooth-er airport experience for top flyers, including priority boarding, baggage handling and more.

Giving backWith a pledge to donate one percent of its net profits to good causes each year, Delta has non-profit partnerships in the four African countries it serves. In South Africa, the airline works with youth charity, the Amy Foundation. Delta funding helps provide after school care and youth skills development to 900 young people in underprivileged townships in the Western Cape, as well as hot meals in a safe and nurturing environment.

DELTA’S nonstop flight between Johannesburg and Atlanta has been connecting South Africa and the US for almost 12 years. As the longest route in the airline’s network, careful thought goes into the products and services offered to en-sure a comfortable, entertaining and enjoyable flight. Here are some of Delta’s latest highlights:

Service reaches new heightsfrom South Africa to the US

E Delta One features Westin’s Heavenly In-Flight Bedding.

H Delta’s RFID baggage tracking technology allows custom-ers to be notified where their bags are from check-in, right through the journey.

DL AD0111 210x297x3 TIR Final NEW.indd 1 05.02.18 12:48

regional update


Indaba 2018 aims fordouble digit growthAFRICA’S Travel Indaba returns to the Inkosi Albert Luthuli Convention Centre in Durban from May 8 – 10. Highlights include a Business Opportunity Networking Day on May 7 and 45 new first-time exhibiting small businesses. The 2018 edition of the continent’s largest and longest-run-ning travel showcase has projected 7,000 exhibitors, buyers, journalists and tourism industry professionals to attend. This year’s theme is Africa’s Stories, Your Success with an im-petus to grow tourism sustainably on the continent, said South African Tourism Chief Executive Officer, Sisa Ntshona. “We want the African tourism economy to help write the story of Africa’s prosperity.” The exhibition underwent a major brand transformation at last year’s show. The new format was introduced to update and modernise the brand and maximise results for participants. “This will provide the latest insights and intelligence to help businesses to not only buy and sell travel, but also to inspire them to innovate and take advantage of global trends and op-portunities…” said Mt. Ntshona. The exhibition follows South African Tourism’s Meetings Africa trade show at the Sandton Convention Centre, attended

by 3,000 global and African delegates to explore Africa as a business events destination. After an eight percent increase in visitors last year, SAT is aiming for double-digit growth in 2018. Registration is open at: www.indaba-southafrica.co.za

H Africa Albida Tourism has won two Zimbabwe Council for Tourism awards. Operations and Finance Director, Nigel Frost, was named Tourism Personality of the Year, while AAT won for Achievement in Marketing for its Africa’s Liv-ing Soul tourism survey, which provides tourism data on the Victoria Falls region. Mr. Frost played a critical role in a four-year campaign by the travel and tourism sector to reverse a potentially damaging application of backdated VAT to hospitality billings in the country. Pictured: Minister of Zimbabwe’s Tourism and Hospitality Industry Prisca Mupfumira; Nigel Frost and Zimbabwe Council for Tourism President Tichaona Hwingwiri.

Photo: Chris Scott

Industry records ‘meaningful’ levelsof B-BBEE transformationTHE ASSOCIATION of Southern African Travel Agents’ new market assess-ment shows “meaningful” changes across the sector, as well as rising levels of black and black-female ownership in travel enterprises of vari-ous sizes. The results are part of a market study by Grant Thornton, commissioned by ASATA. Chief Executive Officer Otto de Vries said further trans-

formation was needed for the travel industry to be reflec-tive of racial demographics. However, “Our study has revealed that the travel sector is dominated by EME enterprises, which is indica-tive of the important role the industry plays in creating and supporting small and micro businesses, many of which are black and/or female owned.” Highlights from the report include:

B More than 55 percent of all travel enterprises with a B-BBEE certificate have achieved a B-BBEE Status at Level 1 or 2;B On average, all travel enter-prises have 40 percent black and 25 percent black female ownership;B Large enterprises have achieved the Tourism B-BBEE scorecard target for black women across all levels of management;

B Achieving total black par-ticipation, particularly at mid-dle and senior management levels, requires more focus; B The proportionately high percentage of black and black female personnel at junior management/travel con-sultant level bodes well for management succession; B The industry should drive skills development for black employees, especially the next generation of management.

Grow your business, earn your stars andget up to 90% off.

Visit www.tourismgrading.co.za

10027388_TGCSA 2018_Q1 Trade_A4_01.indd 1 2018/03/28 3:10 PM

airilnes

Air France targets more market share with Joon launchNew subsidiary increases connection capability

AIR FRANCE/KLM hopes to grow market share in South Afri-ca, with the introduction of a third brand, Joon, flying Paris – Cape Town from this month. New South Africa Group General Manager, Wouter Vermeu-len, said a “digitally-orientated” and “innovative” Joon would provide a different brand experience and increase connections beyond Paris. “… On the long-haul side, it is not going to be a low-fare carri-er. It is the quality of Air France and the standard of Air France and we will have pricing that is fitting for the market… for both KLM and Joon… which means you can fly [from Paris] on Joon to somewhere in Europe and back on KLM.” In-flight entertainment will be available on a passenger’s personal device and will include 3D movies. “It is a brand we use to bring in new innovation into the airline industry,” he maintained. A positive political climate and stronger rand have made a good first impression on Mr. Vermeulen, who was previously head of commercial for Air France/KLM in South America. “It is difficult to compare [markets]… The landscape in terms of competition is completely different. In South Africa, the players are very different. There is little traffic to the US and the Gulf Carriers play a much stronger hub role… where from South America [their role] is to Asia,” he said. “The trade market is very consolidated, which is what I saw in Chile, Brazil… small agencies or only a one-man agency that uses an IATA ticketing facility of another company, which works. In [South America’s] aviation in-dustry there has been strong consolidation… Particularly Brazil, there is still room for development and the market

is not as saturated.” Mr. Vermeulen said the group hoped for continued support from the trade, which he said booked the lion’s share of Air France/KLM seats in SA. “The [Cape’s water crisis] news has had some traction in Europe but, so far, it is more awareness about when they visit the Cape, how they use the water. We have not seen hesitance of coming to the Cape,” he said. Air France/KLM is one of the latest carriers to introduce a GDS surcharge for non NDC-enabled, non-direct bookings. However, Mr. Vermeulen maintained the distribution model provided shared benefits and confirmed the same model for Joon. “The reason for NDC is to be able to offer in a standard-ised way to the agencies everything we have for sale. Today, through the GDS, it is not possible to sell… all the paid options that we have… they have to go through Air France/KLM direct.” Forward projections are positive, he said, for inbound and outbound traffic. “A stronger rand is good for us in terms of leisure activity and when it comes down to corporate… the better the investor climate is here, the more we see…” Mr. Vermeulen maintained: “We are here for the long-haul.

We see the potential… and bringing another brand allows us to address the new segment we might not have addressed with Air France/KLM – and that should make our footprint stronger… The trade are the most important and will remain our most important sales channel. I am looking forward to working with them.”

by Sarah Cornwell


E Pictured: Joon’s Business long-haul seating andits aircraft livery.


personally speaking

continued on page 30

Many shipping linesmissed the boat“It is difficult to appre-ciate now the lack of vision and quite awful judgement of many passenger shipping lines when the airlines, with their new jets, mainly the Boeing 707 and Douglas DC-8, started to take over the major traffic routes between the UK and Europe and North America, Australia and South Africa. I was in hot water with the shipping lines after an inter-view with the then Managing Director of the late lamented Pan Am in the UK and quot-ing him on his predictions of their demise under the onslaught of cheap, frequent and fast air travel. But the self denial didn’t last long and, one by one, historic, household names started to give up and close down. Those iconic names, Union Castle among them, failed to see the way cruising would

transform the holiday expe-rience and grow its global market at the unprecedented rate we see today, generating such huge volumes, new ship builds and creating enormous revenues for destinations around the world. Many thousands of jobs and new businesses have resulted and, incidentally, one of the greatest and most rewarding line-up of products for travel agents to sell. The myopic companies which gave up, sold their ships at fire sale prices and then watched as the more far-sighted turned them into cash machines illustrate the dangers of failing to adapt to changing times. The Transvaal Castle, for example, was sold by Union Castle to Safmarine and became the S.A. Vaal, until the Cape Town – Southamp-ton route was abandoned. Completely misjudging what

was going on in the market, Safmarine then sold it to Carnival Cruises and, as the renamed Festivale, became hugely popular in the North American market and tremen-dously influential in growing the profile and popularity of cruising. I was onboard for a Carib-bean cruise shortly before moving to South Africa and it was packed with families during the school break, who had never considered a cruise before. Introducing their children to a cruise holiday no doubt helped build the market for the future. And a little drive-on, drive-off car ferry called the Sun-ward, which operated from Southampton to Vigo, Lisbon and Gibraltar, was moved to Miami and converted to op-erate short Bahamas and Car-ibbean cruises for Norwegian Cruise Lines, a joint venture between the original owner Knut Kloster and Ted Arison, who later formed Carnival Cruises and, through that, be-came one of the richest people in the world. That venture was also instrumental in launching the development of the Port of Miami into the enormous cruise hub it is today. By chance, I was also on the Sunward’s maiden voyage, disembarked in Vigo to have a brief tour of the Galicia region of Spain, home of the dictator Francisco Franco and, ironi-cally, the Basque separatists, and then joined the ship again on its way back to Southamp-ton. Chance struck again recent-

ly, when I had lunch on Fred. Olsen’s Boudicca in Cape Town. It was originally the Royal Viking Sky and I had been on the line’s first ship’s maiden voyage from Bergen to the Shetland Islands and back into Oslo. It was the Roy-al Viking Star, which is now Fred Olsen’s Black Watch. There seems to be no end to the growth of cruising, ev-idenced by the order book for new ships, giving the travel trade ample opportunity for financial reward in a sector which records a high level of customer satisfaction and repeat business.

A big problem for local high-street and independent agents in selling cruises is competi-tion from major online agents overseas, who produce serious volumes for the cruise lines. I regularly get emails from a US retailer offering cruises with up to 75 percent dis-counts on published cruise fares for ocean and river cruises. Their volumes give them access to often hugely dis-counted fares and special offers from the cruise lines themselves which are not available to smaller retailers. And due to the significantly different air travel market in the US and Europe, air fares are often included from many cities to ports of departure, which can enable additional savings when travelling from

by John Wardall

H Union Castle bowed out but its Transvaal Castle boosted the popularity of cruising in North America.

Photo: Period Paper


PERSONALLY SPEAKING

continued from page 29South Africa. But buying a cruise online is a gamble for inexperienced cruisers and those with no knowledge or personal recom-mendations of specific ships and cruise lines. This is one product in particular where travellers are well advised to consult face-to-face with a trusted travel counsellor.

We all get impressed by the size of airline fleets and the complexity of their opera-tions. SAA has about 54 air-craft. Delta has around 850. But, to put it all in perspec-tive, the US Air Force has more than 5,500 manned aircraft. Even that is dwarfed by the US Army Air Force of World War II. At the height of the war in 1944, it was operat-ing nearly 80,000 aircraft. Today’s South African Air Force has 225, with many of them in mothballs and without the pilots to fly them. So much for the gilt-edged investment of the arms deal.

I had to laugh at the panic and chaos in the UK and Europe, when a bit of bad weather arrived last month, with chilly temperatures and a few centi-metres of snow. Schools were closed, people huddled indoors, roads were closed, rail and airline services were cancelled and dire warnings were issued via television and radio. When I lived in Canada, half the winter was immeasurably more severe but everything continued as normal and there were rarely any disrup-tions. What on earth happened to

... missed the boatthe stiff upper lip?

There must be more icons, he-roes, legends and stalwarts in South Africa than anywhere else on the planet. Because every time anybody goes toes-up, television, radio and newspapers breathtakingly describe them that way. I will be gazing down on my obituary in great expectation – “… that dreadful hack, an icon of fake news, stalwart of facetious comment, legend of misinformation and hero of misguided opinion.”

Now the Rammer has taken over the reins of the South African donkey cart, he needs to swap it for a Roman chariot with racing steeds. For inspiration, he should look to China, which exported only US$249-million worth of goods in 2000. Last year, exports had rocketed to US$2.3-trillion.

And Rome has a solution for the water crisis in Cape Town, where the people are paying the price in rands and in-convenience for government incompetence and neglect over water management. The Romans did a much bet-ter job with their aqueducts which they started building in 312 b.c. Some of those aqueducts are still operating, including the successor to the one which feeds the Trevi Fountain in Rome. We are only 1,500 years be-hind, so it shouldn’t take too long to catch up!

The ANC naturally made a complete dog’s breakfast of the Zoomer’s departure. I have no doubt that it took so long to torpedo him because he has so much dirt on the rogues gallery in parliament and he and they are desperate to avoid a few years wearing orange pyjamas. And they have all had their faces in the trough for so long that it was only the fear of losing the next election that finally persuaded the ANC to “recall” – known by intelli-gent life as “fire” – him. As the Rammer gave his presidential acceptance speech, I wonder if anyone noticed the similarity of his “South Africa must come first…” pronouncement with the Trumpet’s “America First”! There were a couple of good and obvious moves in the new cabinet, particularly in finance and public enterpris-es, two key slots. And Derek Hanekom came back as a token in the limited-influence tourism portfolio. Many people have expressed the view that our billionaire new president should forego his government salary. Why not, as the Trumpet has done in America, and as an example to his greedy colleagues? He certainly doesn’t need the money. Pay for MPs was only in-troduced in Britain in 1911 by Liberal Prime Minister David Lloyd George, my great, great something-or-other relative. It was intended to open up public service to all, whereas it had previously been the preserve of the wealthy few. The aim was undoubtedly right but it has inevitably led everywhere to a breed of pro-fessional politicians, who are mainly interested in personal

advancement and enrichment. They have continuously increased their incomes, perks and pension benefits way beyond the private sector and have created a hugely bloated civil service, also paid on average much more than the private sector, to do their bidding. Sorry, Uncle David, you blew it!

I have been highly suspicious and critical for many years of the way the United Nations and many aid organisations operate. So the hideous Ox-fam scandal is no surprise. You will find aid represent-atives inhabiting first and business class cabins and five star hotels all over the world. And I recall being on holiday in Zimbabwe, having tea at a restaurant on the way back from Kariba to Harare when half a dozen shiny new LandCruisers swept into the parking lot with a partying bunch of UN and aid workers on a jolly assignment in the country. I had had previous exposure to international aid organi-sations when I had responsi-bility for corporate donations at a major corporation. It convinced me that they were littered with amoral, hypo-critical fatcats. The entire aid industry needs investigating, a major shake-up and vigor-ous oversight.

I am off to the happiest place in America for a bit of undeserved R&R. I’ll tell you where it is and why it is and why your US-bound clients shouldn’t miss it in the next issue of TIR.

The happiest place in America provides opportunity to extend visits from SA.

Indirect carriers boost businessthrough competitive marketing.

The aircraft which will grow andrevolutionise the long-haul market.

INTHENEXTISSUEOFTIR

RETAIL NEWS

059_GFOB_TIR General_Print Advert_v1_Paths.indd 1 2018/03/19 11:08:19 AM

Travelstart relaunches omni-channels TRAVELSTART has relaunched its in-house travel consultancy, Travelstart Live and said it is better equipped to assist custom-ers who book complex routings, multi-city and multi-pax trips. Head of Sales Linda Balme said the development was more than just a rebrand and the company recognised the impor-tance of an omni-channel sales model. Travelstart Live caters for bookings more complex than those with fewer segments, including group bookings, multi stops, cruises and “unique” holiday packages. The company uses analytics to automatically prompt rele-vant customers to Travelstart Live where they could be offered additional support. Ms. Balme maintained: “It is a significant shift internally and

H Sandra Raw of Flight Centre Associates was top seller and the overall winner of Uniworld Bou-tique River Cruises’ latest educational sales incentive. Sandra won a Bordeaux, Vineyards & Chateaux river cruise for two.

in how we want to communicate with our customers…agents are now integrated with the website and apps, rather than com-peting with digital channels as a standalone service…”

E Travelstart ran a domestic and international package holiday promotion to help promote the live service. Pic-tured above: Head of Sales Linda Balme.

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south africa ‘flush with opportunity’ · johannesburg, cape town, durban and livingstone to...

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