March 9 2016 I No. 2389 SOUTHERN AFRICA’S TRAVEL NEWS WEEKLY

TRAVEL NEWS WEEKLY TNW7491SD

NEWS REPORT FEATURE SAA, SAX MERGER AMADEUS AWARDS & AUSTRIA What does it mean for SA aviation? All the winners How to sell budget-friendly packages

INSIDE Page 2 Page 8 Page 12 Cruise agent in hot water Darise Foster due to an administrative error on MSC’s part. The OCAL cruise line has denied this. magazine for married “There were a total of 300 Lcouples, Intiem, is Intiem passengers who were considering legal action processed through MSC who against Annemie Raath, cruised without incident,” owner of Bucket List Reise, MSC Cruises marketing and after the agent allegedly sales director, Allan Foggitt failed to pay for 22 cabins confirmed. Travel golf tees off in KZN on its annual themed ‘Intiem “MSC became aware of the Cruise’ for readers, leaving problem on the day before This is the historic first four-ball who teed off to start Travel Industry Golf in KZN. The passengers stranded. the cruise departure as chairman of TIGC, Jose Cruz, officiated and urged the KZN industry to make a special some passengers contacted effort to help the new fledgling branch establish itself. Sponsor, Bidvest Insurance, and “It appears passengers us directly to advise they organiser, Donovan Moodley, from Serendipidty Tours, were on hand to see the first subsequently paid the had not received their group off. From left: Shaun Shunmugan (Rennies Travel); Donovan; Marco Christofoli cruise tickets from Bucket (Harvey World); Marvin Gabriel (Overseas Visitors Club); and Ryan Cronje (Bidvest). agent the balance of List Reise,” Allan said. Contact [email protected] to go on the mailing list for future games. Photo: Dave Marsh the fares, but these The 22 cabins, which had been booked by Bucket List were never forwarded Reise, had been cancelled to MSC .” on December 4 due to non- Agents summoned by Competition payment, which was due 60 TNW received complaints days prior to departure. from disgruntled passengers “We had originally received Commission who said they had paid a R3 000 deposit per cabin. Debbie Badham against Emirates Airline achieving a minimum of for the cruise in full – It appears that passengers for alleged contravention 10% growth in Emirates including flights to Durban, subsequently paid the agent TRAVEL agents have of certain sections of the sales,” the Commission transfers to the ports, drinks the balance of the fares, been summoned to Competition Act. “The told TNW in a statement packages etc. – but were however these were never present information Commissioner alleges that last year. informed by Annemie the forwarded to MSC,” said to the South African Emirates offers incentives “The second aspect day before the cruise that Allan. Competition Commission to travel agents to increase relates to a ‘switchON’ they were not booked on the On the day before the as investigations into ticket sales on any of incentive through which cruise because their cabins cruise, MSC had contacted Emirates’ trade override its destinations outside Emirates allegedly offers had not been paid for. Annemie to advise her that deals intensify. . The first travel agents a 20% Liezel van der Merwe, the affected cabins could be The Commission’s aspect of the complaint discount in respect of managing editor of Intiem, reinstated if the payments complaint against stems from allegations of passengers switched told TNW the agent had were made, said Allan. “After Emirates dates back to Emirates offering certain from competing flights to initially claimed that promising to make good, she April 7 last year when a travel agents economy- Emirates flights. payments were not fulfilled To page 2 complaint was initiated class tickets to Dubai for To page 16

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Top web stories SAA, SAX merger – what  SAA, SAX merger on the cards  SAA amends closing time for local flights does it all mean?  Pound takes a tumble over ‘Brexit’ fears  Tourvest launches new brand The merger with SAX and a potential minority equity partner are on the cards  Monday smile: Dude, where’s your wife? for SAA in the near future. What would this mean for the South African aviation landscape? Dorine Reinstein reports.

URING his budget “Unless the change making losses it will remain speech, Finance resulting from the merger can unattractive and the order DMinister, Pravin be implemented quickly, such of magnitude of its debt is Gordhan, said a possible that the resultant business a deterrent to a prospective merger between SAA and is agile and competent, there minority strategic investor, SA Express would create a will be an opportunity for says Rodger. “SAA’s business bigger and more operationally other operators to gain more can be fixed, but in order to efficient airline. traction in the local markets,” do so it needs stability and a June Craword, Barsa ceo, says Rodger Foster, ceo of clear strategic direction.” says a merger between the Airlink. A minority shareholder state-owned carriers makes doesn’t necessarily need good sense. “SAA, Mango “A merger would to be silent and sit back, and SAX routes should be says Chris. KLM, for rationalised. They should extend SAA’s reach example, became a minority TNW6154SD not be competing but rather and dominance shareholder in Airways complementing each other. through direct control and managed to completely ® This way all stand to win.” turn the airline around to Rubes By Leigh Rubin Although a good move on of smaller routes in make it a huge success. the part of the airlines, a South Africa, currently The same is true for the merger would have limited partnership between TAAG impact on the South African operated by SAX.” and Emirates. Any possible aviation landscape, says partner for SAA would Chris Zweigenthal, Aasa ceo. Rodger adds that merging likely bring the necessary He explains that, as SAA and SAX and SAA will bring knowledge and expertise SAX currently operate on very about a single state-owned to bring the airline back to different routes, a merger enterprise airline, which profitability, he says. would be unlikely to disrupt will lead to much-needed Rodger agrees that the industry. stability. However, he warns there are models where A merger would extend that bringing two financially minority investors play a SAA’s reach and dominance unstable businesses together more significant role in through direct control of will also naturally result in the management of the smaller routes in South bigger losses. “It is probable business. As such, the Africa, currently operated by that the combined entity Middle Eastern carriers could SAX, says aviation analyst, will need to shrink into be potential equity holders Joachim Vermooten. “It sustainable viability before for SAA. However, Rodger would inhibit entry and it can afford to stretch its points out that these carriers expansion on smaller routes wings and grow into new have already permeated the by smaller private-sector horizons.” Southern African markets by airlines. SAA and SAX could having access to multiple internally co-ordinate prices Who will invest? cities directly from their hubs. and supply of capacity, Who would want to invest “So why would they wish exclude or foreclose other in cash-strapped SAA as a to invest in the local airline private-sector airlines from ‘minority partner’? network system comprising “Rule No. 1: Keep both paws on the wheel interlining, resulting in a The challenge is that financially challenged and your head out the window.” reduction of choice.” as long as SAA continues entities?” ■ Cruise agent in hot water Founding Editors: John H Marsh (1914-1996) Leona Marsh (1923-2003) From page 1 added that some clients incurred damages resulting disappeared and we were had been refunded and the from a loss of commissions EDITORIAL TRAVEL NEWS WEEKLY left to try accommodate Managing Editor: Natasha Schmidt [email protected] agency was in the process and other entitlements www.etnw.co.za Deputy Editor: Debbie Badham [email protected] the passengers without of completing other refunds. under the circumstances, Published by Journalists: reservations in whatever “Posts on social media all of which will also be Travel & Trade Publishing (Pty) Ltd Darise Foster Dorine Reinstein cabins were available at claim that we ran away. This claimed.” Printed by Juka Printing (Pty) Ltd Carina Borralho Taryn Nightingale the harbour on the day.” is definitely not the case. As As a gesture of goodwill, Phone: (011) 327-4062 The passengers had been things stand now, we will not MSC has offered affected Fax: (011) 327-4094 Photographers: Shannon Van Zyl required to pay an additional continue business.” passengers a free cabin E-mail: [email protected] Megan Fischer amount, although it had Intiem magazine and at on its March 14 departure. Web: www.nowmedia.co.za Production Editor: Ann Braun Address: Now Media Centre, been largely discounted, least two other affected “While MSC is not legally 32 Fricker Road, Illovo Boulevard, GROUP PUBLISHER said Allan. passengers, have since sent liable for the bookings and Illovo, Johannesburg. David Marsh [email protected] The cruise line has since formal letters to Annemie PO Box 55251, Northlands, payments made by those suspended Bucket List from their lawyers explaining passengers who booked 2116, South Africa. SALES Reise’s agency code with their legal positions. Sales Director: Kate Nathan [email protected] through Bucket List Reise Ad Co-ordinator: immediate effect. “We will quantify in for the Intiem Themed Anthea Lucas [email protected] When contacted by TNW due course the damages Cruise, we nevertheless and asked why payment was incurred resulting from the understand and sympathise PRODUCTION not made, Annemie said: state of affairs, whereupon that this unfortunate state Design Head: Dirk Voorneveld “The only thing I can tell we intend to hold Annemie of affairs has caused a SUBSCRIPTIONS you is we, together with my liable for damage to great deal of distress on Circulation [email protected] lawyer, are busy with our our name and business the part of those affected own investigations.” She reputation. We have also passengers,” said Allan. ■

2 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS TNW7478SD NEWS Luxury rail operator snaps up Shongololo Express OVOS Rail has and ceo of the Rovos Rail Southern Cross: Pretoria such as the Arabella Golf sites and overnight stays at purchased the Group, Rohan Vos. to Victoria Falls (12 days); Estate, Ernie Els Oubaai, safari lodges. The rates do RShongololo Express train The train has been Dune Express: Pretoria to Fancourt, Champagne Sports not include most lunches, of 19 coaches and has agreed repainted in green and cream, Swakopmund (12 days); and Resort, Durban Country Club, beverages and laundry. to employ all the personnel. while an additional dining Good-Hope: Pretoria to Cape Zimbali, Royal Swazi and “A three-star product offering “Operating a three-star car and an observation Town (15 days) – have been Leopard Creek being available will be different for us and I’m train had always been at car have been added. The rebuilt with more stationary to guests. sure there will be a few initial the back of my mind and accommodation of six time at night and less road All journeys are available teething problems but we’ve when I learned that the Emerald suites (± 10sqm) time spent on the excursions. in reverse and, as before, been doing this for 28 years Shongololo Express was on and 30 Gold cabins (± 7sqm) Golf has been introduced to guests can purchase optional so I think we will be able to offer, the timing seemed will remain as is. the Good-Hope trip, renamed extras that include visits to manage this exciting new serendipitous,” said owner The three itineraries – Good-Hope Golf, with courses cultural, historic or heritage adventure,” Rohan said. ■

SAA amends Joburg closing time for domestic flights SOUTH African Airways to baggage, so that has amended its our customers may departure closing time not be inconvenienced for check-in to 40 by possibly travelling minutes before boarding with their baggage left on certain domestic behind,” says Tlali Tlali, flights operated from spokesperson for SAA. OR Tambo International The airline said flights Airport, effective April 1. would close sooner but Previously, SAA closed that it would not have all domestic flights 30 an impact on current minutes prior to check-in. boarding times, which The change will apply to would not be changed. You asked, we listened flights from Johannesburg “We have realised that to Durban, , a significant number of The Seychelles Tourism Board (STB) has officially opened an office in Johannesburg. “The Port Elizabeth and East short shipment cases message from the trade was that we needed a presence in the business centre of South London. on our domestic sectors Africa and we have listened,” said Seychelles Minister of Tourism and Culture, Alain St. Ange. “The reason for emanate from late “This is a commitment from STB, which intends to work more closely with its partners in this closing flights earlier is check-in and we trust market.” The office is in the same building as Air Seychelles, at 280 Oak Avenue in Randburg. to allow the airline to that the new measures Pictured here, celebrating the opening of the office are (from left): David Germain (STB conclude all departure will go a long way in director for Africa); Lena Hoareau (manager for South Africa); Sherin Naiken (ceo of STB); procedures timeously, addressing the situation,” and the Minister, Alain St. Ange. Photo: Natasha Schmidt especially those relating says Tlali. ■

Helen Johnston selects the top specials from Travelinfo

 Pure Skiing. Seven-night package in Italy from R13 880pp sharing. Rate includes accommodation at the Livigno Hotel Bernina in a double room with breakfast daily, six-day ski pass and hire (boots, poles and skis), accessory, ski guiding, 10 days’ Zurich Travel insurance. Excludes flights and taxes. Travel dates April 9-16.  Air Holidays. Victoria Falls package from R6 105pp sharing. Rate includes return flights from Johannesburg, cross-border transfers, three nights’ accommodation at A’Zambezi River Lodge with breakfast and dinner daily, sunset cruise and a guided tour of the Falls. Offer excludes taxes of approximately R2 770pp. A $10 (R160) park fee for the cruise and $20 (R319) Falls entry to be paid directly. Valid for travel until April 30.  Perfect Destinations. Vietnam highlights tour from R19 500pp sharing. Rate includes return flights from Johannesburg (including taxes), domestic flights, transfers throughout, eight nights’ accommodation, including one night on a train, English- speaking guides, air-conditioned coaches and meals as per itinerary. Set tour dates apply. Valid for travel until September 30.  Kulula.com (KZN). Winter promo from R2 341pps. Offer includes return flights from Johannesburg or Lanseria to Durban, approximate taxes and fuel levies, two nights in a standard room at the Protea Hotel Umhlanga, two days’ car rental (group T) with a standard www.ethiopianairlines.com waiver and 200km free per day. Offer valid Email : [email protected] for travel from April 1 to September 30. Tel: 011-326-1190

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4 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS TNW7469SD NEWS Four bidders eye Indaba

Tessa Reed Travel Week, consisting exhibition organiser. Its suitable for all three shows. as well as share risk and of World Travel Market past clients include SAA “In addition, SAT has profits”. OUR companies have Africa, International Luxury and Rovos Rail, while it concluded that a third Minister of Tourism, expressed an interest Travel Market Africa and lists Meetings Africa (2010- show, a luxury market Derek Hanekom, told TNW F in becoming a strategic Incentives, Business Travel 2015) on its website under show is essential for at the recent Meetings partner for one or more & Meetings Africa. ‘projects’. South Africa. Therefore Africa show that the of the trade shows SA Pure Grit is the current SA Tourism published to maintain its profile, tender process to select Tourism owns and manages organiser of Indaba and is a call for expressions of be more impactful and a strategic partner had – namely, Indaba and also the organiser behind interest in September last to realise the potential not yet been concluded. Meetings Africa – as well SA Tourism’s presence in year, with a closing date to provide a business “We were hoping that the as a third show that SA international trade shows of October 9, 2015. In operational platform for strategic partner would be Tourism believes is needed such as WTM London and the call for expressions of the industry, the strategy found last year already,” for the luxury segment. They ITB in Berlin. interest, SA Tourism said it is a triangle of exhibitions he said, adding that the are Thebe Reed Exhibitions, Outlaw Marketing and was looking for a strategic encompassing all three process was under way. Pure Grit Project and Events’ past projects partner for each or both of areas of leisure, business According to the Minister, Exhibitions Management, include Ironman South the two events as well as and luxury,” the call states. the aim is for the partner Outlaw Events Management Africa and the Proudly a third show. The strategic The successful partner to come on board for the and Synergy Business South Africa – Expo and partner would jointly would need “extensive 2017 edition of Indaba. Events. Conference. Synergy execute the shows. More tourism trade exhibition This year’s show will be Thebe Reed Exhibitions is Business Events describes than one partner could be experience” and would organised by Pure Grit and the organiser behind Africa itself as an experienced chosen if a partner was not “provide equity investment again hosted in Durban. ■

Air Seychelles launches fifth JNB service FOLLOWING its recent fifth service on Thursdays, with flight HM 060 at 09h25 to arrive in Friday and Sunday flights announcement of the effective March 17. departing Johannesburg Johannesburg at 12h35. will be operated using an addition of a fourth weekly The service will now at 14h00 to arrive in The Wednesday, Thursday Airbus A330. The addition service from Johannesburg operate on Wednesdays, Seychelles at 20h55. and Saturday flights will be of the Thursday flight will to Seychelles, Air Thursdays, Fridays, The return flight HM 061 operated using an Airbus boost capacity on the route Seychelles will launch a Saturdays and Sundays, will depart Seychelles A320 aircraft, whereas the to 868 seats a week. ■

The Boeing 777-300ER: SWISS’s new flagship and its top passenger comfort

SWISS will be ushering in a new era in its SWISS Economy: more comfort and SWISS First: more privacy and individual long-haul services with its nine new Boeing entertainment discretion 777-300ER aircraft. The new twinjets, which With the new Boeing 777-300ER, SWISS Every seat in the SWISS Boeing 777-300ER’s will replace part of the present SWISS Economy travellers can look forward to First Class cabin can be easily transformed Airbus A340 fleet, offer 340 passenger maximum inflight comfort, through both greater into a private suite that includes a personal seats, a state-of-the-art cabin product legroom and new seat-cushion technology. The at-seat wardrobe and more stowage space for in all three seating classes and the key inflight entertainment will be offered on a large the guest’s belongings. The electro-mechanical innovation of wireless internet connections 11-inch personal touchscreen with USB and window shades can be operated simultaneously aloft. SWISS will be deploying its new audio connections. The new SWISS Economy for all three windows in the traveller’s seat zone; Boeing 777-300ERs on routes to Asia, seat also features drinks and smartphone and the 32-inch video screen – the biggest in South America and the US West Coast from holders. And as a further innovation, guests will the airline industry – makes SWISS’s inflight the Northern Hemisphere 2016 summer be able to obtain a wide range of drinks and entertainment a pure and total delight. schedules onwards. snacks from a new self-service kiosk outside the With its new Boeing 777-300ERs SWISS regular cabin service. will be setting new benchmarks in terms of

its customers’ inflight comfort and overall air SWISS Business: more privacy and personal All nine of the new SWISS Boeing 777- travel experience. The totally-redesigned space 300ERs will further offer wireless internet cabin interior of the new SWISS flagship Travellers in SWISS Business on the new connectivity, provided via a broadband will offer the highest levels of comfort and Boeing 777-300ER will find a product that has connection. The new internet access will enable aesthetics in all three seating classes. And been further developed and refined on the guests to surf and send emails on their laptop, thanks to its state-of-the-art engines, the strength of customer feedback. The modular tablet or smartphone device. new twinjet will also deliver sizeable savings seating configuration, with its combination Not on the JNB route as yet, but from the in both fuel consumption and carbon dioxide of double and single seats, offers maximum Northern Hemisphere 2016 summer emissions. privacy and freedom of movement. And, as at schedules onwards the new SWISS Boeing present, the Business Class seat can be swiftly 777-300ERs will be deployed primarily on transformed into a lie-flat bed that is over two services to Hong Kong, Bangkok and Los metres long, while the firmness or softness of Angeles. San Francisco, São Paulo and Tel Aviv the seat cushion can be individually regulated. will also receive SWISS Boeing 777 service The new SWISS Business cabin also offers several times a week. For operational reasons, swiss.com greater privacy, more space to stow personal the new twinjets will further be operated to New belongings and a new easy-to-handle table. York JFK and Montreal until September 2016.

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6 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS TNW7482SD REPORT AMADEUS AWARDS Shaping the future of travel

Natasha Schmidt the ‘what and how’,” said It was therefore Amadeus vp for Africa, becoming more important MADEUS recognised Paul de Villiers. “The future to understand the needs its top-performing traveller is born for the and behavioural trends of Aindustry partners at Internet, they want to be customers, Paul said, “and the recent Shape Awards, connected all the time, they this is where partnering partners that have helped want personalised service with the right technology ‘shape’ the future of travel and to feel special, and they solutions provider can in Southern Africa. The want convenience. They are make the biggest difference glitzy event was held at the happy to take risks, such in terms of segmenting Inanda Club in Johannesburg as using Airbnb, because the market, improving on February 25. technology has negated the efficiencies and cutting “Customers are evolving risk of booking via sharing costs, and driving additional – it’s about experience, economy start-ups.” revenue streams”. Thompsons Travel awarded Mary Shilleto the ‘Shape the Future of Travel’ award, acknowledging her contribution to studying the Amadeus environment and its solutions and “being a change agent within her organisation”. Pictured here, with Mary, is new Amadeus Southern Africa gm, Andy Hedley. Photos: Natasha Schmidt The winners… Partnership Award  Tour Operator –  Valued Alliance – Archie Thompsons Holidays Modiba of Atlantis  Online – Corporate Travel Innovation Awards Performance Awards  Travel Management –  Large Travel Management Tourvest Travel Services – American Express  Tour Operator – Marine & Offshore Beachcomber Tours SA  SMMEs – Sirius Travel Shape the Future of Travel  ITC – Arthur Zia-Fei of  Mary Shilleto, Thompsons From left: eTravel’s Garth Wolff (ceo) and Avril Leigh Shackleton (travel manager, Inland) Sino-Nam Travel Travel ■ with Amadeus vp for Africa, Paul de Villiers.

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8 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS On your marks, get set, go!

Avis Budget Rent a Car has been named the exclusive car-rental partner for the 46th annual Old Mutual Two Oceans taking place in Cape Town over the Easter weekend. Agents can find athletes good deals on car rentals by visiting Budget’s website and searching for Two Oceans Marathon promotions. Pictured here (from left) are Avis Budget Rent a Car key account managers for travel sales, Cynthia Dicks, Bonolo Pitsoe and Camille Nel. Photo: Megan Fischer New airline entrants struggle to combat market distrust

Sue Van Winsen industry for a long time.” Richard Bodin, cco of fastjet, agreed HE high rate of failure for new and said that while SA was one of the airlines entering the SA aviation most attractive destinations in Africa, Tspace has made it difficult for its aviation sector “has a catalogue emerging entrants to gain credibility of spectacular failures”. He said the and the trust of local consumers. country’s limit of no more than 25% Speaking at the recent GBTA foreign ownership of airlines was also workshop in Pretoria, Fly Blue a barrier to entry. Crane cco, Theunis Potgieter, said “As a relatively new airline and a despite their ambition, many failed low-cost carrier, fastjet is very focused new entrants made the mistake of on stimulating demand. While we underestimating just how difficult it are growing, we are keeping fares is to enter the market and this has low at this point to generate interest tainted people’s perceptions. “The in demand in recognition of the fact barriers to entry are high as you have that there have been some market to pay upfront for fuel, Acsa fees failures,” said Richard. and aircraft.” He added that airlines He added that revenue management should factor in an investment period principles were constantly evolving of about three years before they and that price elasticity was should expect to start to turn a profit. essential. “Certain African countries Theunis added that many new rely on cash in hand at the moment, airlines made the mistake of trying to which makes yield management a compete on the 10th busiest route in real challenge. For example, easyJet the world, Johannesburg-Cape Town. would expect 40% to 50% of seats to He said that, instead, Fly Blue Crane be sold 11 months ahead of travel, had opted to focus on routes with while fastjet’s average is just nine higher margins, while dealing with the days. right distribution partners, proving “Reputation is key, and our hope their proposition would be a key part is that, as we grow our routes, of their future strategy. “People are frequencies and footprint, so we starting to ask questions about who will get more and more converts. If is behind new brands in the aviation people fly with us and feel they got sector – and in our case we have a value, then hopefully word of mouth lot of people who have been in the will spread,” added Richard. ■

Barsa updates website THE Board of Airline Representatives The website now also includes up-to- of South Africa (Barsa) has updated date member and industry news, useful its website and included a CV portal, links, as well as press releases and updated industry news and events resources that are only accessible to calendar. logged-in members. The CV facility allows travel agents “We have put a lot of effort into to upload their CVs to let them be ensuring that this updated website viewed by Barsa members who have meets the online needs of interest job vacancies. Prospective employers to consumers, our members in the can also browse through uploaded CVs international airline arena, industry in the members-only section of the stakeholders and strategic partners,” website. says Barsa ceo, June Crawford. ■ TNW7466SD

QUICK READ FOR BUSIEST PEOPLE Wednesday March 9 2016 n 9 REPORT THE BUSINESS OF AVIATION

How do airlines survive when operating costs compound drastically but fares need to stay low? Comair ceo, Erik Venter, discussed the business of aviation at a recent forum at the Gordon Institute of Business Science. Darise Foster reports. Remaining relevant in a tough market HE aviation industry airlines was to manage years of not doing much oil price rose rapidly. “At has probably burned this discrepancy – not to improve efficiencies is a the rate it was increasing, Tmore equity and letting the gap widen – by big ask.” it took us almost a year capital than any other leveraging institutional The aviation industry to get the airfares up high industry and yet people are memory and expertise is very susceptible to enough to compensate still desperate to get into to remain innovative and the influence of external for that. But it was a it, says Comair ceo, Erik come up with new ways of factors – such as the rise great opportunity to do a Venter. keeping costs down while and fall of oil prices and massive IT infrastructure Speaking at the Gordon driving growth, Erik said. competition – and therefore re-work within the Institute of Business “Comair starts every airlines often have to deal company.” Science on February year by figuring out how we with unpredictable crises. Erik said if Comair had 24, Erik said the trend are going to cut costs to “Never waste a good attempted to re-work its IT continued to amaze him, keep the business going. crisis,” said Erik. infrastructure two or three especially given South Planning for every year is years prior to the crisis Africa’s track record when critical. You can’t plan five Dealing with crisis – when operations were it came to the launch, and years in advance because “You have to get staff still running according to then failure, of new airlines. things will have changed to realise that things will plan – there would’ve been The cost of flying has far too much by then – not always go smoothly resistance from the staff. dropped by 70% over the and then it’s too late to “Never waste a good and this industry is not “I’m sure people would last 60 years, he said. recover.” a safe haven. A crisis have said we don’t need “Meanwhile, the total cost This was the reason SAA crisis. You have to should be used to tighten new systems but when of running our Comair continued to see major get staff to realise up operations and prepare faced with the choice of operations has increased losses each year, Erik said. that things will not for future difficulties.” having bonuses cut or by about 230% since kulula “Nothing has really Staff would also be more their salaries frozen for a was introduced in 2001 changed at SAA since it always go smoothly receptive to change, he year, people were happy and the average airfare has received its Boeing 737 and this industry is said. to say, ‘yes, let’s do this only gone up by 35% over fleet in 1999/2000. For example, Comair because we need to get the same period.” So trying to implement not a safe haven.” experienced a serious back to where we used The challenge for changes now after 15 Erik Venter crisis in 2011 when the to be’.” Comair to ‘play it safe’ in 2016

Dorine Reinstein yield. On the upside, the kulula brand has suffered share,” she says, adding May. However, Kirsten says airline reported strong from pressure as a result that the public should rather the St Helena government FACED with challenging cash earnings of R382m of increased competition expect a slow and gradual has subsidised the route. market conditions in the first and a cash balance of and “excess capacity” in increase in fares. The airline’s strategy is half of the 2016 financial R972m at the end of the the market. “Our average For the upcoming year, to focus on big data. It will year, Comair has said it year. Passengers carried ticket prices have declined Kirsten says Comair will not continue to grow its loyalty will be playing it safe for increased by 4%. 10% compared with last be making any bold moves. scheme with Avios in order the remainder of the year, Comair suffered losses year, whereas the average “What we’re doing now is to gather as much customer focusing on retaining its from its fuel hedges, which industry yield has declined maintaining market share data as possible to improve market share. matured at the end of by 25%. At some point there in a difficult climate.” The the customer experience The airline published its last year. Another major will need to be a correction,” airline has no immediate through increased results for the interim period stumbling block for the says finance director, plans to extend its route personalisation, Kirsten leading up to December airline was that it had to Kirsten King. “Airlines network. The only new route says. “We’ll make the flying 2015, reporting that revenue revalue a dollar-denominated will be very cautious of on the cards is a service to experience more personal decreased by 5% due to loan of US$27m (R429m) increasing prices suddenly St Helena Island, which is by targeting what people a 10% decline in average on one of its aircraft. The for fear of losing market expected to commence in really want.” ■

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10 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS NEWS

SAA’s online bidding system – how does it work? TNW asked senior customer service agent for Webjet SA, Tasneem Suliman, to conduct a ‘road-test’ of SAA’s online bidding system, Step-Up. Debbie Badham asked Tasneem for her professional opinion on the process. CTING as the client, TNW bid for a the bid had been successful and, if it business-class upgrade on flights was successful, the amount the client Abetween Johannesburg and Cape would be charged. The client was sent Town, departing on December 26, 2015 the same email,” she explains. and returning on January 3, 2016. It is important to note that the client Tasneem began the bidding process is not charged for placing the bid, only if on November 20. At this point, the bid the bid is actually successful. for the Johannesburg-Cape Town leg Unfortunately, the bid was started at US$60pp (R963) and the unsuccessful, as they were ultimately return bid at US$40pp (R642). Tasneem informed by email the day before points out that the timing and popularity departure. Though, Tasneem points out, of the December 26 flight is a likely the system did classify the bid as weak. reason for the hefty starting bid. Spokesperson for SAA, Tlali Tlali, says The client elected to go with the the success rate of Step-Up is very starting bid and Tasneem says, when dependent on the quality of the bids, WLH hits the road! she placed this bid, the system the time of year and the actual route. immediately alerted her to the fact that “All these factors influence how many At the Johannesburg leg of its annual roadshow, held at 54 on Bath it was a weak bid. However, the client upgrades we are able to accept.” He on February 16, World Leisure Holidays showcased its latest product chose to stick to this bid. notes that in the first eight months of range. This year’s roadshow stood out as it was the first time the tour After placing the bid, Tasneem says the programme SAA has had over operator presented all its product partners in a roadshow format the process was simple. “I completed 7 000 bids and the success rate of to the South African market. They include Veranda Resorts, Kerzner the required details, filled in the customers getting the upgrade they bid International Resorts and Shangri-La’s Le Touessrok Resort and Spa. reference number, called up the booking for was over 60%. Pictured here (from left) are: Sayeed Eyasim (sales manager Sun and provided the client’s credit card Aside from the success of the system, Resorts); Cathie Bester (national sales manager WLH); Ramesh details. Thereafter I received an email ultimately Tasneem says the process of Jeenarain, (financial controller WLH) and Ingrid Zahavi (travel notifying me that I would be alerted 24 using Step-Up is streamlined and simple consultant Fairmount World Travel). Photo Taryn Nightingale hours before the flight whether or not for agents to use. ■

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QUICK READ FOR BUSIEST PEOPLE Wednesday March 9 2016 n 11

Dresden, Germany. Travel to Austria and Germany is not as expensive as South Africans may perceive it to be. Taryn Nightingale investigates how agents can take advantage of this. How to sell budget-friendly packages LTHOUGH the perception for under-35s and it is the solution for their clients when relationships with tour exists that travel to cheapest and most fun option they pose them with a budget operators that give them Adestinations such as for young people available.” and destination problem, says an advantage when selling Austria and Germany is “It is not necessary at all Stuart Goodall owner and to the South African pricey, industry experts say to stay at four-star hotels manager of ITC, Travel 15. market, says Anthea. She the reality of the situation is and one can stay with “With a little research you can encourages agents to deal different. confidence at any three-star still have a great experience with a reputable operator “Austria is far less hotel,” adds Inge. “It is also but at much lower rates,” he who has had the experience expensive than is generally not necessary to travel first adds. to negotiate great deals and expected,” says Inge class in trains. The difference Anthea Hay, owner of discounts on their behalf. Dobihal, owner of Austria between first and second ITC Peak, agrees that part “Business cards are gold Connection. She says there class is minimal and second of this research involves and if you know the right are alternatives for the more class is much cheaper. The travel agents keeping up to people you can negotiate the cost-conscious and that first-class service offers date with the latest product best service for your clients,” there is a misperception that slightly softer upholstery, knowledge. She says there Stuart adds. higher rated hotels offer big computer connections and are many ways of cutting Trafalgar, for example, differences in service. a free Austrian newspaper, costs, including exploring has kept its pricing at the Sean Hough, ceo of which is of value to business alternative ways of getting same levels it had set in Pentravel, agrees, saying that travellers but not necessary clients to their destination. August 2015. Because of although there has been a for tourists.” In light of this, developing the operator’s Rand Price shift away from family skiing With the right research, good relationships with Guarantee, travel agents can in Austria, cost-effective agents can put together great “Austria is far less suppliers is important for an book packages to Austria alternatives are readily packages to Austria and expensive than is agent’s ability to sell these and Germany for their clients available. “Contiki Hopfgarten Germany for travellers who destinations. without being concerned is experiencing huge demand are on a budget. Travel agents generally expected.” Travel agents must about the rand’s fluctuations. from us. It is a ski resort need to find a creative travel Inge Dobihal focus on cultivating strong To page 14

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12 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS TNW7483SD GERMANY AND AUSTRIA

How to sell budget- friendly packages From page 1 and a separate driver. Trafalgar’s value product, Inge says Austria CostSaver, is designed Connection offers travellers specifically for travellers reasonable prices for family who are budget conscious. holidays and that it has An example is Highlights of one such product designed Germany, which is priced for families travelling this from R18 850 for 12 days Easter. Vienna for Families per person sharing is designed for cost- A visit to Schönbrunn Palace is included in the Vienna for Families package. (R1 571 a day). The conscious families who want package explores a large to ensure that their children and the Butterfly House. The Card. The card offers in the amusement park part of Germany, including have plenty to do while on ZOOM Children’s Museum free public transport and and entrance to Madame Frankfurt, Wuppertal, holiday. The package centres offers special exhibitions discounts on entrance fees Tussaud’s Wax Museum are Hamburg, Berlin, Dresden, on a visit to Schönnbrunn, and workshops and The and sightseeing tours. also included in the offer. Nuremberg, Munich the former summer Prater, Vienna’s amusement Entrance to the Vienna Zoo The package prices depend and the Black Forest. It residence of the Hapsburg park, with its giant Ferris at Schönnbrunn Palace, on the exact dates, number includes three- and four- family. There, families can wheel, are also included as including a ride through the and age of children but is star accommodation with visit the House of Music part of the activities offered. zoo on the ‘train on wheels’ available from €625 breakfast daily, five three- – where they can learn The package price as well as a three-course (R11 000) for the whole course dinners, applicable about music and sound and includes three nights in a lunch at a restaurant in family (two adults and two airport transfers, a travel also have the opportunity family room in a three-star the zoo are also included children) for three nights and director who is an expert to conduct the Vienna hotel with breakfast as in the package. A ride includes the aforementioned in the locations explored Philharmonic Orchestra – well as a 72-hour Vienna on the giant Ferris wheel activities. It’s not all about price WHILE affordability is authentic cultural experience important, ITC Peak’s Anthea of the Austrian countryside. Hay also stresses that agents “[Trafalgar] uses our Insider need to consider whether Experiences to really give they are offering their clients our guests an authentic value for money. “It may be experience of the cities and one thing to save R1 000 on countries they’re travelling an airfare via Timbuktu, but through.” The tour operator when you are sitting in an offers a Sound of Music trip airport late at night for hours, where travellers are offered with perhaps small children, an Insider Experience at its wondering if your luggage has Be My Guest dinner with a also made the connection, local family on their farm near is there true holiday value in Salzburg. “The Klaushofer this?” she says. family host our guests on a Theresa Szejwallo, md farm that has been passed On the Sound of Music trip, travellers will stay in the Meierhof, of The Travel Corporation down from generation to Schloss Leopoldskron in Salzburg. Photo: Wikimedia Commons and Trafalgar, emphasises generation. The Faisternauer that it is important to sell Farm is organic and produces adding that Trafalgar offers Leopoldskron in Salzburg, a destinations in a way that cheese and butter, honey from “authentic accommodation” hotel that was commissioned showcases how and what their bees and elderflower as another Insider Experience by the Prince Archbishop of make these destinations products,” says Theresa. designed to “lift travel to Salzburg in 1736 and was also special. In Trafalgar’s case, the She says a destination can another level”. On the Sound used as the setting for many value of Austria is expressed be showcased even in the of Music trip, travellers will of the scenes that were filmed in trips that reflect the accommodation that it offers, stay in the Meierhof, Schloss for the movie. Air travel is still affordable WHEN selling Austria and despite the fluctuations in on SAA’s fares. currency. In fact, Germany, agents should the rand’s exchange rate, the He explains that Tlali says SAA has also point out to their airline’s fares have remained SAA’s airfares in actually noticed clients that the airfares to stable and competitive. South Africa are an increase in the these destinations are still Spokesperson for predominantly number of South affordable. SAA, Tlali Tlali, says the priced in rands with Africans travelling Danica Helfrich head of depreciation of the rand only a portion of to Europe with the SWISS Southern Africa, says has not had a major impact the taxes in foreign Danica Helfrich airline.

TNW7421SD Advise your clients… FOLLOWING Germany’s will be passport checks holding a Schengen visa. prepared for minor delays For a FREE introduction of border at the borders to control Pentravel’s Sean Hough at airports due to the subscription to TNW checks in September and illegal immigrants, says says travellers should be increased security checks. Austria’s decision to follow in Inge Dobihal from Austria aware of random checks in However, there are not any contact Gladys on November, travellers need to Connection. these destinations and ITC delays or security checks note that, due to the influx There are no restrictions, Peak’s Anthea Hay advises that would drastically [email protected] of asylum seekers there however, for travellers that travellers should be inconvenience travellers. ■

14 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS COMMUNITYNEWS JOBS Births, deaths, marriages, promotions – we want to know! Please fax or e-mail TNW’s Debbie Badham, at [email protected] or (011) 327 4094.

Obituary THE travel industry is Pick of mourning the loss of Catherine Elizabeth the week (Zena) Lethbridge brought to you by who passed away on February 18. Well known and loved within the industry, Catherine began her Leisure Consultant – JHB North career in the 1970s at Professional Career Services Handling all leisure bookings Columbia Travel which (flights, accommodation, car hire was owned by Lou etc). Itineraries. Galileo essential. Etkin at the time. She Min 5 years’ leisure A new committee experience. R12-R16000. then started her own Email: [email protected] business – Hotel and The steering committee for the new KZN Travel Industry Golf Club was elected at its inaugural Conference Bookings game. (From left) Marvin Gabriel (Overseas Visitors Club); Jose da Silva (Jomar Services FIT Consultant – French – where she managed Speaking – Johannesburg and Travel); Pippa Coote (Sprout Consulting); Donovan Muirhead (National Accommodation Professional Career Services hotel reservations, Assoc. of SA) and Donovan Moodley (Serendipity Tours). Photo: Dave Marsh Designing of leisure FIT conferencing and tailor-made itineraries. Min 5 incentive travel, a novel years’ inbound tour operating experience. Sal neg. idea at the time. From Email: [email protected] this evolved Milpark Travel and then Sure Inbound Consultant – Durban Lee Botti & Associates Travel Management. Flaunt your knowledge of She was joined in 1985 beautiful Africa in this wholesale by her partner, Roger position. Lovely, stable working environment. Mackie (former Asata Email: [email protected] president and Uftaa main board member). Senior Leisure Consultant – She retired in 2004 Durban Lee Botti & Associates after her business was If groups & incentives are purchased by Grindrod your specialty - this is for you. Jet International Travel. Exceptional company with strong support system. Catherine is described Email: [email protected] by fellow colleagues within the industry as FIT Consultant – Johannesburg North a private, dignified and Equity Connections cc beautiful person, who Join great team with leading loved the bush and, in Cheers! operator. Liaise with agents, particular, her cottage plan, design, cost itineraries. Beachcomber Tours recently hosted an educational in Mauritius. Pictured here (back Suit intermediate/senior with on Ingwelala on the strong Africa know-how. Kruger Park border. She from left) at Le Mauricia enjoying tropical cocktails are Cerone Strydom (Flight Centre Email: equitycon@.co.za travelled extensively George); and Shelley Daniels (Beachcomber); (front from left): Zelda Folkus (Flight Centre Blue Route); Janine Fouten (Flight Centre West Coast); and Patricia Szasz Intermediate Consultant – and always enjoyed Bryanston attending tennis at (Flight Centre Plattekloof). Equity Connections cc Wimbledon. Handle corporate bookings with some leisure spin-off. Three years A memorial service Hotel Bryanston, on August corporate experience plus fares, was held for Catherine Retirement 1, 1985. As the group grew, ticketing and ticket re-issue and on February 24, Amadeus needed. The City Lodge Hotel Group’s she moved into the buying Email: [email protected] attended by well- first employee, Lynda side and became the group’s known members of Schroeder, picked exactly purchasing manager, a position National Networking Consultant the industry such as the right day to leap into she held until her retirement. – Tygervalley Vanya Lessing, Ivan Club Travel retirement – February 29, ‘leap Seen here celebrating with Seeking experienced Galileo Visee, Des O’Loghlen, year day’. Lynda at a retirement party staff to assist in creating Dave Bradshaw, Alan She was Hans Enderle’s held at the group’s Bryanston travel entrepreneurs. Strong Wolman and Laurie communication skills, articulates secretary when the City head office are (left) the well, outgoing and approachable. Wilkinson. Lodge Hotel Group opened group’s former chairman and Dickson, a co-founder and the Email: [email protected] its first hotel, City Lodge founder, Hans Enderle, and Bill group’s first financial director. Ticketing Consultant – Cape Town CBD Appointments Club Travel Ticketing agent needed for the ■ Skål Skål Johannesburg Club will centralised ticketing department. Johannesburg be focusing on increasing Minimum of one GDS required Club’s annual membership in 2016, by and at least 2 years’ ticketing experience! general meeting creating value for members Why should you use us? Email: [email protected] was held on and planning effective, fun February 26 at the networking events. National offices Senior Corporate Consultant – Braamfontein DaVinci Hotel, Sandton, where Interview face-to-face Wendy’s Travel Personnel the new board was announced. ■ Natasha Freeman has joined Work closer to home and enjoy The newly elected president is Sabre as its new Obtain detailed references the benefits of working for market leader! Brenda Dooge (pictured) group senior sales Credit & criminal checks Email: [email protected] client, media & public relations representative. TNW7549 manager from Guvon Hotels & With more than 20 Highly trained consultants Spas. Brenda said: “I see it as years’ experience Visible advertising These adverts were my duty to respect the history in the travel selected from the and traditions of this great industry, Natasha spent the last Abide by APSO ethics vacancy section of organisation whilst ensuring 14 years representing AirPlus www.travelinfo.co.za that it meets the requirements International, marketing and Contact us at For more details contact of its membership and selling its payment and analysis [email protected] [email protected] today’s tourism industry.” products for business travel. TNW7516

QUICK READ FOR BUSIEST PEOPLE Wednesday March 9 2016 n 15 TNW NEWS

Agents summoned From page 1 and at no point during the “The Commissioner alleges interview did they disclose that this conduct could what they were looking for.” amount to inducing travel “There is nothing agents not to deal with untoward in our dealings Emirates’ competitors, with Emirates,” says Allan thereby hindering Lunz, md of BidTravel. He competition in the market.” does point out, however, One agent who preferred that the Middle Eastern to remain anonymous, airlines are a threat to said they had been traditional European called to Pretoria for carriers. “Emirates flies Buy one, pay 50% for the second! an interview with the here four times a day so Competition Commission. I wouldn’t be surprised Ethiopian Airlines is offering travellers the chance to pay full price for one ticket and get “We had to provide quite if the other airlines 50% off the second. The offer, which is valid for departures from Durban to all Ethiopian’s a comprehensive set of feel Emirates is taking destinations featured online, will see the first passenger pay the full adult fare and the documentation relating passengers away from second pay half the fare plus all taxes. The second passenger can be an adult or a child. The to our dealings with them. Although it’s promotion is valid for travel and sales on/before March 31 using the DUR-32-A ticketing international airlines, and interesting to note that code. Pictured here (from left) preparing for take-off are Ethiopian Airlines’ senior sales one international airline in Emirates is not always representative, Bathi Pendu; and senior customer service agent, Naomi Chiyinge. particular.” the cheapest. Sometimes Photo: Megan Fischer The agent says that Etihad and Qatar are during the interview a lot cheaper.” of questions were asked When asked for relating to the supplied comment regarding documentation, adding that the Commission’s Axe to fall on Flyafrica SA questions asked about investigations, information supplied dated Emirates told TNW it Debbie Badham running Flyafrica’s airlines, operational staff who will be as far back as a couple of took compliance with have been left in the dark, based in Harare. In terms years ago. competition law very LYAFRICA’S operations without communication from of supplementary functions “It was not obvious by seriously, and that the in South Africa will management, including new such as marketing and sales, the type of questions they airline was co-operating Fbe liquidated, while ceo, Michael Duncan, who Cassidy says the airline will were asking what they fully with the Commission’s employees are left without could not be reached for follow its franchise agreement were trying to establish enquiry. ■ pay and still in the dark about comment. “Not a single staff with the holding company. what’s going on at the airline. member has received any form “However, should Flyafrica Ltd Fly Africa Aviation Services of documentation that will prove unable to provide these (FAAS), Flyafrica SA Ltd, and assist them with their current services as per the agreement, Africa Aircraft Maintenance financial dilemma (due to no we have made provision to – subsidiaries of the holding pay or notice of termination),” operate on our own and will company based in Mauritius – the statement said. offer jobs to existing staff brought to you by eTNW and TRAVELINFO will be placed into liquidation, FAAS’s executive members before looking says Daniel Terblanche, an management team was elsewhere.” associate director in the suspended in January, at which Flyafrica will also Corporate Finance department point staff members were told renew its relationship with at Deloitte & Touche, who was Michael would take over as Hahn Air and will outsource appointed as the business acting ceo. On February 5, ticketing in the SA market to rescue practitioner for the staff were promised the Holiday Aviation. “Flyafrica Networking not a priority South African companies. restructure of operations. Zimbabwe has informed us How often do you attend travel networking events? When the Flyafrica group However, it was not long after that it will retain our ongoing was established, a different this that Michael “disappeared services as a ticketing  When I get a chance – I’m just too busy company was set up in each without communication”, a agent for the airline as well country from which it would staff member told TNW. as excess baggage fee  Every now and again operate. The companies were Flyafrica Ltd could not be collections from our offices in  As often as possible then run from SA by FAAS, reached for comment on what Randburg and ORTIA once the  Never, I don’t find them beneficial which acted as a virtual office this meant for the group’s airline resumes flights,” says for the airlines. operations as a whole. sales and marketing director Daniel told TNW, based of Holiday Aviation, Matthew 33% 33% on the limited information Flyafrica Zim refinanced Simpson. supplied to him, there was Meanwhile, Flyafrica Zimbabwe Meanwhile, it seems unlikely no reasonable prospect of will continue to operate as that Flyafrica Namibia will the SA companies being a separate entity, having resume operations in its 20% rescued. He is therefore acquired a new investor. The original form. Frank Stein, obliged to discontinue the airline plans to relaunch flights director and shareholder 14% business rescue proceedings within the next two weeks. for Nomad Aviation, which and to request the High Court Flyafrica Zimbabwe operates provided the licensing and to place the companies in separately under an AOC ground operations for Flyafrica liquidation. owned by Nu-Aero private Ltd, Namibia, says there are no “Due to a fall-out between which has recently received a plans from Nomad Aviation’s eTravel is the ITC market leader in South Africa and assists senior Travel the investor and top financial injection of US$6,6m side to resuscitate Flyafrica Consultants and Travel business owners to realise their dreams. If you have management, a decision (R103m) to refinance and Namibia’s operations. He ever dreamt of owning your own travel business or would like to cut costs was made by the investor rejuvenate operations on its says Nomad Aviation had by doing away with your IATA license and improve your current business efficiencies then you should call eTravel. We run the back office for over not to fund the airline with existing routes, chairman a franchise agreement with 200 Independent Travel Companies and specialise another cent and this is to the Cassidy Mugwagwa, told TNW. Flyafrica Ltd through which in making your travel business a success by offering detriment of the company’s The airline currently operates the Mauritius-based company the best commissions, overrides & a comprehensive biggest assets, the people, under a franchise agreement provided the Flyafrica brand support structure. If you have a client base, 5 years who haven’t been paid for with the holding company, name and expertise. However, travel consultant experience or already own your as long as three months,” Flyafrica Ltd, through which it Frank explains that Flyafrica own business but want to make more, then contact us! You’ll be amazed at how easy it is! employees of FAAS said in a pays 3% for use of the brand. Ltd never honoured its side statement. Now operating as a of the agreement and Nomad Contact Tammy on 0861eTrave1 or [email protected] The employees of FAAS, separate entity, Flyafrica Aviation has been left with the who were responsible for Zimbabwe has recruited airline resulting costs. ■ TNW7136

16 n Wednesday March 9 2016 QUICK READ FOR DECISION-MAKERS