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High Hopes for Lower Fares Fantasy Becomes Reality

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High Hopes for Lower Fares Fantasy Becomes Reality April 30 2014 I No. 2299 SOUTHERN AFRICA’S Travel NEWS Weekly TRAVEL NEWS WEEKLY TNW6138SD NEWS FEATURE FEATURE ONLINE TravEL AGENTS CONFERENCE VENUES Tough times ahead for high-end venues Learn from online retail shopping! Unique position offers huge on-tap market INSIDE Page 2 Page 7 Page 13 High hopes for lower fares Fantasy becomes reality CHANA BOUCHER any peak are between R6 500 big enough to sustain SAA, and R8 000 in economy class, Mango, BA, kulula, SAX, SA HILE Comair is still so there is an opportunity for Airlink, FlySafair, etc. They fly disputing the granting anyone to win on price.” old planes that guzzle gas Wof FlySafair’s domestic Chris Zweigenthal, ceo of and then they try and sell at air service licence, the travel Aasa, says the industry and reduced rates? That doesn’t trade in general has welcomed market has been expecting sound like a viable business the prospect of a new low-cost the launch of a new LCC model.” carrier in SA’s skies, which for some time. “FlySafair He adds that because the will help drive down air ticket will enter a very competitive consumer is price sensitive, prices. market and one would expect FlySafair will get a fair share FlySafair is set to launch a lot of interest in the new of customers. “If the price early in the second half of airline from consumers with is right people will fly. The this year, says chief financial the expectation of lower fares consumer, however, will get officer, Elmar Conradie. He and a new flight offering. I am caught at some stage and says the airline will most likely sure that the existing airlines then cry foul when the airline launch a schedule of six daily will respond. The appearance shuts down over a long flights between Johannesburg of the new entrant, FlySafair, weekend or a busy travel time. and Cape Town, building up which is also an Aasa member, But don’t worry, we travel With the launch of the fourth season of the Game of to the 10 flight flights a day it is welcomed and we wish agents will be there to pick up Thrones on April 18, Tourism Ireland SA has announced originally planned to operate them well.” the pieces,” says Jonathan. that enthusiasts can now visit the show’s production last year. Initially, booking will Elmar doesn’t think locations and film sets. A number of tours explore the only be possible on FlySafair’s FlySafair’s grounding last show’s locations in Belfast where filming takes place in website, but Elmar says the “A new LCC entrant year will dissuade people the Titanic Studios and across numerous other locations airline is looking at GDS will be a welcome from booking flights on the in Northern Ireland. One such tour is the Causeway options. relief to the domestic airline. “We believe the Coast and Glens three-day Game of Thrones trip across “A new LCC entrant will way we handled the whole Northern Ireland. Ready to conquer, are Tourism Ireland’s be a welcome relief to the traveller, especially in situation last year will probably Helen Fraser (left) and Gail Gilbert. Photo: Shannon Van Zyl domestic traveller, especially the leisure sector.” strengthen our position in in the leisure sector,” says the market. We refunded all Eric Sakawsky, Flight Centre’s tickets within two or three days gm of corporate. He adds that Garth Wolff, ceo of eTravel, and passengers were offered Risky business increased competition should agrees that there is enough tickets on Comair,” he says. see a significant reduction demand to warrant a new Eric says although travellers CHANA BOUCHER Etna Risk Advisories. in domestic airfares making player in the market, as the will naturally be sceptical of Many travel companies, travel more affordable in a current flights are often full. any new entrant because AFTER losing a significant particularly SMEs, cannot tough economic client. “This “The question is whether the of the turbulent history SA amount of money due to necessarily afford to incur the will certainly help stimulate new entrant has the aircraft has experienced with local internal fraud and poor costs linked to implementing travel demand.” that will be as efficient as the airlines, he believes FlySafair corporate governance, owner traditional risk management Sean Hough, ceo of current market players. This could be a serious contender of travel agency, First Travel, systems, says Doné Joubert, Pentravel, says: “Competition will play a role in the long-term in the LCC space in the next Andree Venter, and gm Leon ceo of the company. Based on is important and we viability,” he says. few years. “If we look at the Malan, saw an opportunity this, Etna Risk Advisories has need the capacity in high But Jonathan Gerber, last 10 years we have seen to introduce professional risk developed an online ‘plug and season. Return fares from director at TAG Travel, isn’t Nationwide, 1time, Velvet Sky, management services to the play’ risk management system Johannesburg to Cape Town at convinced. “The market is not To page 16 travel industry, and launched To page 16 TNW6131SD NEWS Learn from online retail shopping! DORINE REINSTEIN capture impulse holiday take notice of you if you can buys. Travel companies offer them simplicity.” LTHOUGH it seems should also make the most Travel companies can obvious that shopping of mobile GPS capabilities take action by making their Afor a pair of shoes by using hyper local targeting search bar prominent on differs greatly from shopping and assist travellers with their website and include for that perfect holiday, online local attractions, nearby upsells in the search results, travel agents can learn a lot hotels with available rooms along with adding in industry- TNW6153SD from other online retail sites and local car hire options. specific filter functionalities. about how to hook and retain customers – and convert 2. Pay per click – an 4. Use cart ® By Leigh Rubin sales. untapped opportunity abandonment to your Rubes This is according to a Pay-per-click advertising is advantage recent report, Travel vs an underused marketing Travel sites have a much Retail, conducted by Qubit tool in the travel industry, bigger issue with abandoned (a US-based website despite the fact that pay-per- check-outs, with nearly 90% optimisation company). click traffic is approximately of visitors leaving before Survey results show that 50% higher for travel than confirmation, compared with retail sees a much higher for retail. Travel companies only 28,4% in retail. Carol conversion rate, lower should wake up to this and says travellers use the cart average order values, and capitalise on this opportunity. as part of their search. They a much shorter path to see the website’s cart as a purchase than travel. The way of calculating the final report found that: “Travel websites should price of a product with all the Travel sees conversion be looking to optimise ancillaries included. rates of 0,75% whereas According to Matt, cart retail converts at 5,9% their search bar abandonment presents a Travel clients see a 10 and search filters to real opportunity to drive times greater order value generate conversions.” conversion rates. Travel when compared with retail. visitors are three times more Paths to purchase are a likely to look at the basket great deal longer for travel Banners on affiliate websites, than retail. This implies (13,2 days) compared with although representing a that travel retailers need retail (6,5 days). smaller percentage of traffic, to optimise the basket and are also a huge opportunity check-out sections of their 1. Mobile offers for travel companies as they websites. They can use site unlimited opportunities have very high conversion abandonment as a tool to for travel businesses rates. catch their users as they Although conversion rates for leave. travel on mobile platforms 3. Optimise your site are considerably lower than search 5. Work on first for retail, travel customers For travel businesses, impressions Founding Editors: are twice as likely to browse visitors spend, by far, the Travel visitors tend to see John H Marsh (1914-1996) Leona Marsh (1923-2003) on mobile devices. most amount of time on fewer pages on their first EDITORIAL Carol Savage, marketing the search pages, with an visit than retail visitors, TRAVEL NEWS WEEKLY Editor: Natasha Tippel [email protected] director of Exodus Travel, average of seven seconds but more in later sessions. www.etnw.co.za Features Editor: Michelle Colman [email protected] says customers might not be per page view. Retail visitors On the first visit, travel Published by Contributors: booking on mobile platforms on the other hand spend visitors convert half as often Travel & Trade Publishing (Pty) Ltd Mandy Watson Debbie Badham but they are inspired by a longer time on product compared with retail, which Printed by Juka Printing (Pty) Ltd Hilka Birns Chana Boucher Dorine Reinstein browsing on their mobile pages. This means that is the biggest difference Phone: (011) 327-4062 Photographer: Shannon Van Zyl devices, which is why travel travel websites should be through the purchase cycle. Fax: (011) 327-4094 companies need to make looking to optimise their The fact that travel visitors E-mail: [email protected] Production Editor: Ann Braun Web: www.nowmedia.co.za PUBLISHER sure their website pictures search bar and search filters browse for longer on their Address: Now Media Centre, Kate Nathan [email protected] are optimised for mobile. to generate conversions. third, fourth and fifth visits 32 Fricker Road, Illovo Boulevard, Matt Pollock, travel lead Carol says it is important implies that this latter Illovo, Johannesburg.
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