May 21 2014 I No. 2301 SOUTHERN AFRICA’S Travel NEWS Weekly TRAVEL NEWS WEEKLY TNW6184SD NEWS REPORT FEATURE StaYWELL TOURISM INDABA 2014 SELL MORE ... Oz hotel group enters Africa High airfares threaten tourism SKIING INSIDE Page 2 Page 4 Page 11 New SA carrier – is there room? CHANA BOUCHER regional sector could lead to the market becoming unstable. “A price OMPETITION in SA’s domestic war is inevitable, and this will be and regional airlines is great for consumers for a while.” Cheating up. Rodger says the thin routes have Ex-SAA ceo, Siza Mzimela, plans inadequate volumes to sustain to launch a new airline, Fly Blue competition. “We have seen Crane, that will operate domestic this time and time again, with and regional routes. Fly Blue Crane competitors falling by the wayside is a subsidiary of Siza’s consultancy after having entered markets such as business, Blue Crane Aviation, which Polokwane (Velvet Sky) and Nelspruit she runs with Theunis Potgieter and (Comair) in the past. As it is, on the Take the challenge! Jerome Simelane, also both ex-SAA. routes currently competed on by SA Réunion Island Tourism is inviting agents to enter ‘Mascarun South The airline is remaining tight-lipped, Express and Airlink there is far too Africa’ and win a spot on its adventure educational. For six days between not offering many details about its much capacity, yields are inadequate September 7 and 14, eight teams of three travel agents will have the plans. Rich Mkhondo, executive: and the situation is unsustainable.” opportunity to discover the island and take part in the various exciting chief marketing and communications Although Rich indicated that the of Fly Blue Crane, would only confirm intention was for Fly Blue Crane outdoor activities. To win a place on Mascarun South Africa, sign up that the airline had applied for an Air to operate as a regional airline, online at mascarun.welcometoreunionisland.com. Participants will be Services Licence “for potential future the carrier has also applied selected through sales challenges but also by registering for an e-learning prospects of launching a regional for a domestic licence, citing programme at www.travelinfo.co.za/workshops. Playing to win, are, airline”. Johannesburg and Cape Town as the from left: Hélène Bezuidenhout (Atout France) and Stéphane Bonneau According to Fly Blue Crane’s airports from where it would operate. (Réunion Regional Tourism Board). Photo: Shannon Van Zyl application with the DoT, Siza, who Aasa ceo, Chris Zweigenthal, says owns 70% of the airline, will be new airlines are seeing a gap in the ceo. Theunis, with 20% of the the market. “If Fly Blue Crane were shares, will be coo; while Jerome, to operate on the Johanneburg- The next wave of with the remaining 10%, will take Cape Town route, and if FlySafair the position of chief commercial and Skywise were to commence ‘bricks-and-mortar’ operator. operations, that would lead to an The application also states that oversupply of seats on the route.” DEBBIE BADHAM customers into the store and Fly Blue Crane will use Bombardier He says, to be sustainable a new keeping them there. Canadian Regional Jet (CRJ) 900 airline needs to be sure that the XL SANDOWN Travel has unveiled Situated in Sandton City’s Banking Series aircraft, not currently operated yields from passenger sales will its new concept store – which it Hall, the store greets customers by any other airline in South Africa, be able to cover the high operating has dubbed the “next generation with a wide entrance and a digital and that the plan is to launch costs with as low an overhead cost travel agency” – with a touch-screen touch screen, from which they are services by January 2015. One of structure as possible. “There is a monitor, specialist consultants able to browse different products the regional routes in which it has need for growth in the market and and unique packaging and pricing that the agency has put together expressed interest is Cape Town- this would need to be sustained options for leisure travellers. No – similar to how they would online. Windhoek. beyond the time of introductory low longer your typical bricks-and-mortar The packages are grouped under Rodger Foster, ceo and md of SA competitive fares.” storefront, XL Sandown Travel aims different subject tabs, Airlink, says a new entrant in the To page 20 to attract more foot traffic, bringing To page 2 TNW6166SD NEWS StayWell enters Africa USTRALIA’S StayWell will operate all StayWell- this joint venture between Hospitality Group has branded properties in Mantis and StayWell Ateamed up with Mantis sub-Saharan Africa,” said couldn’t be better,” said Collection to front the StayWell ceo and md, the chairman of Mantis, growth of its hotel brands Simon Wan. “It provides a Adrian Gardiner. “The throughout sub-Saharan vital platform for StayWell’s opportunities are abundant, Africa. expansion into a region and with our expertise we’re Under the joint venture that is accelerating in looking forward to growing agreement, StayWell will growth.” Simon added that the Park Regis and Leisure establish its Park Regis and sub-Saharan Africa was Inn brands throughout the Leisure Inn brands in some outpacing North Africa region – we already have TNW6154SD of sub-Saharan Africa’s key in terms of hospitality a few propositions in the cities, at prime properties to development. pipeline.” be procured by Mantis. “Sub-Saharan Africa is The deal follows StayWell’s Rubes® By Leigh Rubin “We have entered an where India and China recent hotel entry into China important joint venture were 20 years ago in and its expansion in India, partnership to form a hotel terms of development and where it now has eight hotel management company that opportunity; the timing of agreements. XL Sandown Travel has specialist stations in four separate booths. Photo: Shannon Van Zyl “Hey, don’t look at me, lady. I’m strictly ‘fetch only.’” The next wave of ‘bricks-and-mortar’ From page 1 will introduce clients to new “We want the excitement of such as ‘interests’ and and exciting experiences a holiday to begin right there ‘destinations’. they may not have thought of and then, not just when the Founding Editors: What makes these themselves. client gets on a plane.” John H Marsh (1914-1996) Leona Marsh (1923-2003) packages unique, says md Once clients have selected Marco believes that this EDITORIAL of XL Sandown Travel, Marco packages they are interested new brand of concept store TRAVEL NEWS WEEKLY Editor: Natasha Tippel [email protected] Ciocchetti, is that they offer in, they are then engaged by is the way forward for travel www.etnw.co.za Features Editor: Michelle Colman [email protected] clients rates that they would the ‘hostess’, who profiles agents in SA. He says many Published by Contributors: not be able to get online the client to determine what clients step into travel Mandy Watson Debbie Badham Travel & Trade Publishing (Pty) Ltd or direct with the supplier. holiday would suit them agencies for information Printed by Juka Printing (Pty) Ltd Hilka Birns Chana Boucher Dorine Reinstein He says suppliers are often best. From there, she directs and then go home and book Phone: (011) 327-4062 Photographer: Shannon Van Zyl hesitant to drop their rates the customer to the most directly on the Internet. But Fax: (011) 327-4094 E-mail: [email protected] Production Editor: Ann Braun because they fear it will relevant specialist consultant. with this new model, which Web: www.nowmedia.co.za PUBLISHER set a standard they cannot In addition, clearly marked provides clients with better Address: Now Media Centre, Kate Nathan [email protected] afford to maintain. However specialist stations have also deals, highly specialised 32 Fricker Road, Illovo Boulevard, if those rates are hidden in been set up in four separate advice and a more exciting Illovo, Johannesburg. GROUP PUBLISHER PO Box 55251, Northlands, David Marsh [email protected] the security of a package, booths, under the headings and interactive experience, 2116, South Africa. they are able to grant special of ‘Sun and Ski’, ‘Southern he believes clients will be ADVERTISING inspired to do their travel Sales: [email protected] deals. “Clients won’t easily Africa’, ‘Guided Tours’ and Advertising Co-ordinator: be able to reconstruct the ‘Bucket List’, so that clients shopping in store. Courtney Canham [email protected] same all-inclusive deal online, can feel assured that they are While the agency’s leisure which will include flights, sitting and consulting with an offering will continue to PRODUCTION Design Head: transfers, hotels, meals and expert, Marco says. operate from Sandton City’s Dirk Voorneveld sightseeing options.” Each consultant is equipped Banking Hall, its corporate Also significant is the with a large screen so that business will be moving SUBSCRIPTIONS Circulation [email protected] type of packages that are clients can view their holiday to a separate location in available, which Marco says bookings as they come to life. Johannesburg. TNW6179SD 2 n Wednesday May 21 2014 QUICK READ FOR DECISION-MAKERS TNW6182SD REPORT TOURISM INDABA 2014 Africa doesn’t need Airfares in Africa 50% national carriers – Minister higher than rest of world DORINE REINSTEIN taxes and fuel surcharges. DORINE REINSTEIN like Middle-eastern airlines, “Most African markets have “Many governments flying African routes. This not liberalised their air space. AIRFARES in Africa are actually add taxes that IGH airfares, non- connectivity is good, but It makes it very difficult to 50% higher than anywhere the public doesn’t even transparent taxes and we want our own airlines to think beyond SA and to think else in the world, and this know about because of the Hthe over protectionism of compete on these routes about de-regulating and needs to change.