operators endorse cruise industry revie · travel industry review value-for-money international...

Published by TTG Southern Africa

Travel Industry Review

Value-for-money international cruise holidays to book now, from page 10.

The Serendipity Worldwide Group plans for ‘tomorrow, together’, page 5.

Fly at the sharp end in the

Premium & Frequent Flyer

feature, from page 13.

see entry detailsin the October

2016 issue

with Delta and TIR!WIN

LATAM to revive South America business BY SHANNON LATIMER

THE 2016 Olympic Games has raised awareness of Latin American travel, but retailers and wholesalers say they will need to work hard to capital-ise on the exposure and grow the market. South American business from South Africa never fully recovered after Malaysia Airlines withdrew its service to Buenos Aires at the end of 2011.

Effor ts to promote the region, however, have been boosted with the launch of LATAM Airlines’ Johannes-burg – São Paulo route, with three flights per week from October. While the 2016 Olympics were still underway, a report by Euromonitor showed a seven percent increase in overseas arrivals to Brazil within a week of the opening ceremony. But there had been

a mixed reaction from South African retailers and whole-salers about the demand for travel to the games. “SAA’s route to São Paulo experienced an increased load due to demand from those wanting to travel to the Olympics. Many African del-egations as well as journalists and sports fans were going to Rio de Janeiro via Johannes-burg. We also experienced higher demand from pas-

sengers coming from Asia and Australia… connecting in Johannesburg,” said SAA spokesman, Tlali Tlali. “We certainly expect the Olympics to be a shot in the arm for Brazil and South America in general,” said John Ridler, Thomsons Holi-days. Thompsons has just re-leased a new South America brochure and agent educa-

continued on page 8

LATAM Airlines hosted Signature Latin America product and destination training workshops in three cities last month, joined by 15 tour operators and Latin American tourist boards. There was a strong turnout and three travel agents won tickets on LATAM’s first flight from Johannesburg to São Paulo at the start of October. Pictured: Martin Modarelli, LATAM Commercial Direc-tor UK, Nordic Countries and Africa, with Durban prize winner, Brenda Fischer, Sure Map Travel.

Photo: Trevor Crighton

Waseema Raven and Jolene Hendricks from Club Travel’s ticketing department have been jointly named the company’s Exceptional Employee of the Year for 2016, for out-standing performances during the last 12 months. The winners received R5,000 and a hamper and were invited to lunch with the company’s directors. Pictured above (l to r): Charmaine van Niekerk, HR & Operations Director; Waseema Raven; Managing Direc-tor, Wally Gaynor; Jolene Hendricks and Gary Mulder, Financial Director.

Risk of interruption to services ‘unlikely’ – SAASOUTH African Airways has reassured the trade the necessary steps are being taken to ensure services will continue uninterrupted in October, while the airline’s application to renew its oper-ating license is pending.

A nalys t s wa r ned la s t month the Air Services Li-censing Council could refuse the airline’s application due to inadequate funding and mounting debt, which would mean the immediate suspen-sion of all flights.

C onc e r n fo r t he a i r-l ine’s f inancial standing has mounted, following last month’s High Court ruling in the competition case between SAA and Nationwide. SAA

was ordered to pay R104.6-million plus interest in dam-ages, although the airline was still to decide on an appeal. However, with a second

More chances to win withTIR and American Tourister!Win more great prizes from leading luggage specialist American Tourister, by entering the Spotted with TIR competition. See page 6 for this month’s lucky winner...

continued on page 2

Operators endorsecruise industry reviewBY SARAH CORNWELL

CRUISE GSAs have initi-ated an informal project to determine the size of South Africa’s international cruise market and the potential for new business. The intention is to educate the travelling public through more targeted campaigns and to convince travel agents of the untapped earning potential in cruise sales. A l l a n Fo g g i t t , M S C Cruises Commericial Sales & Marketing Director, con-f i r med last month: “We would love to get some accu-rate figures and have started calling around to others in the industry… It is definitely something we are working

on. We have a thumb-suck idea of the size of the market but this will let us know more accurately what the numbers are.” There have been casual discussions and informal es-timates and conversations from time to time, said Tri-ton Cape Sea Travel Sales and Marketing Manager Ian Mathews. Although noth-ing formal had reached the company yet, he commented: “A positive figure could en-courage greater investment in South Africa as a market by major cruise lines.” “When they are allocating budgets to certain markets, it is important to know the size of the market they are talking to,” said Mr. Foggitt.

“We are still trying to nail down a quantifiable figure, although it is not going to be auditable.” “My personal opinion has always been that there are millions of people who can afford to go cruising inter-nationally… the thing is to convince them to choose that holiday. It is an educational process… Then there are those people who are already out there, cruising at the mo-

continued on page 11

News Digest

2 TIR Southern Africa • September 2016

SOUTH African Airways was ordered by the High Court last month to pay collapsed domestic carrier, Nationwide, R104.6-mil-lion, plus interest, for anti-com-petitive behaviour. Comair was still seeking damages in excess of R1-billion in its case against the national carrier. The Nationwide claim dates

back to 2010 and went to court in February this year. Nationwide argued SAA abused its domi-nant position, providing unfair incentive commissions to travel agents, in order to divert business from competitor carriers. Closing arguments in the case between SAA and Comair were due to be heard at the end of Au-gust. Although legal analysts com-

mented that SAA could still lodge an appeal in the Nationwide case, the Democratic Alliance said the payout would sink SAA into “further financial disarray” and repeated calls for the airline to be placed under supervision. The party said SAA had “no wriggling room left” with cur-rent government guarantees not enough to meet the Nationwide judgement. “Added to the leaked first quarter loss of R1.3-billion means that SAA will in all likeli-hood start defaulting on creditor payments,” the party argued. SAA’s 2014/15 financial state-ments are st ill pending. The Treasury has applied for an ex-tension until September, the fourth such delay. Deputy Shadow Minister of Finance, Alf Lees, said he had ap-proached the Standing Commit-tee on Finance for legal opinion about the requests for an exten-sion. He said the organisation would follow up on those requests and “vigorously seek to bring SAA back to financial health and root out all causes that have led to its insolvency”. SAA did not respond to ques-tions about the Nationwide rul-ing, nor whether it planned to challenge the court’s decision.

Doubts sounded overSAA ability to pay fineBY SARAH CORNWELL

Joining Uniworld Boutique River Cruises at its Christmas in July event in Johannesburg, Pentravel consultants (l to r): Anesta van Biljon and Kaitlyn Edward, Pentravel Cresta with Lieria Boshoff, Uniworld Brand Manager and Marni Erasmus and Nadja Louw, Pentravel Brooklyn. An early booking promotion for 2016 Christmas markets cruises in Europe has been extended to September 30, with savings of up to R13,000 per couple.

case involving Comair still pend-ing, questions were raised about SAA’s ability to settle more debt. The Democrat ic Al l iance warned the financial implications could be dire and repeated its call for the airline to be placed under business rescue. SAA spokesperson, Tlali Tlali, maintained: “It is highly unlikely that there will be service inter-ruptions in October and that our aircraft will be grounded… We do not anticipate any service in-terruptions… [and] where con-cerns are raised by relevant regu-latory authorities, we engage with them to ensure that we remain compliant and continue to oper-ate.” He said the airline worked con-stantly to ensure compliance re-quirements were met in all areas. “SAA is not oblivious to the impact any possible service in-terruption could have, not only on the airline but also on its cus-tomers. To this end, [we] will space no effort to ensure that we are compliant and continue serv-ing out customers in the markets where we operate,” Mr. Tlali said.

continued from page 1

Risk of interruptionto services ‘unlikely’...

Briefly.

Aviareps’ Airline Mini Fair takes place Sep-tember 19 at Emperors Palace in Johannesburg, with one session from 09h00 – 12h00 and another from 13h00. To register:[email protected]

News Digest


Contiki adds India togrowing Asia programmeBY SHANNON LATIMER

CONTIKI Holidays has add-ed an immersive India tour to its new Asia line-up, plan-ning its return to the sub-continent in December after a 40-year break. The youth specialist’s new In-Depth Explorer Eternal India 12-day it inerary is paced to allow for solo dis-covery and exploration. The tour visits Delhi, Agra, Ran-

thambore, Jaipur, Udaipur, Mumbai and Goa , f rom R27,707, inclusive of two in-ternal flights. The first trip operates in December. Thereafter, the travel season runs from Oc-tober to April. The tour visits several heritage sites, including the Taj Mahal, and includes a safari and a stay at Rantham-bore National Park. Optional activities include a cooking

demonstration and local fam-ily supper in Jaipur, Bolly-wood tour in Mumbai, tour of Mumbai at dawn and a yoga class on the beach. General Manager, Kelly Jackson, said: “Recently we have seen a sharp rise in the demand for more authentic, out of comfort-zone travel experiences that give young people more of a sense of ad-venture and make them feel far from home.”

Perfect Destinations partnered with its local DMC on a recent agent educational visit-ing Indonesia, Borneo, Yogyakarta and Singapore. Pictured above: 18 consultants from various travel agencies across South Africa participated. Highlights included a two-night stay in the jungle to visit the orangutan sanctuary at Camp Leakey in the Tanjung Putting National Park, a stay on a working coffee plantation and a visit to Borobudur Temple, which predates Angkor Wat in Cambodia by three centuries.

Thailand raises securityTR AVELLERS were ad-vised to allow for more time for travel to and within Thai-land, after heightened securi-ty measures were introduced at tourist sites following bombings in Hua Hin, Surat Thani, Trang, Phang Nga and Phuket provinces last month. The Tourism Authority of Thailand appealed to visi-tors to get “a balanced un-derstanding” of the situation and to plan their trips accord-ingly. TAT domestic offices were assigned to look after injured tourists and ensure support services for foreign-ers.

Jacqui Carr, from The Hol-iday Factory, said the opera-tor had received some calls from concerned customers but reported no immediate cancellations. Bookings were still being confirmed, she said. John Ridler, Thompsons Holidays, said none of its clients had been affected by the blasts and had all elected to stay in Thailand. But “… A few clients have asked us to hold off on issuing their documents until the situation becomes clearer,” he added. TAT has embarked on a major campaign to restore

confidence in overseas mar-kets and to stimulate future travel bookings, planning more events and festivals and special tourism promotional campaigns. A situation moni-toring centre and We Care Campaign have also been es-tablished. TAT said local and in-ternational news was being monitored and that arrival, cancellation and booking stats from airlines and tour-ism-related companies would be collected, although there had been “very few chang-es… for the present or near future”.

Trafalgar launches its new,expanded Asia programmeEarlybird offer for Europe in 2017 ends this month

Customers can extend their time in Asia with a mix of four-day mini-stays in key cities. In India, there is an option to stay on and help build schools in partnership with ME to WE. Pictured above: Vietnam.

BY SARAH CORNWELL

TRAFALGAR has expanded its Asia programme with nine new itineraries and three new destinations, India, Sri Lan-ka and Laos, for 2017. An early payment promo-tion is in place, with savings of 10 percent, when bookings are paid in full before No-vember 25. An early payment promo-tion for the operator’s 2017 Europe programme expires at the end of this month. It allows for 10 percent off 2016 rates for European tours departing in 2017. Deposits must be paid by September 30, with the balance due Jan-uary 27. Deposit amounts were re-

cently increased from R1,000 to R3,000, which the com-pany said was more realistic and would encourage travel-lers to honour their bookings. A use it, don’t lose it clause safeguards deposits for five years, if customers need to defer travel. Theresa Szejwallo, Trafal-gar Managing Director South Africa, said price increases of around 10 to 15 percent were forecast for next year, although published rand rates for the 2017 programmes would be guaranteed. In addition to the new des-tinations, Trafalgar’s 2017 Asia line-up features a mix of mini-stays in key cities, such as Bangkok, Hong Kong, Singapore, Macau and To-

kyo, which can be booked separately or added as an ex-tension to a full-length itiner-ary, including those from the Europe programme. Mini breaks in Bangkok are priced from R10,500 pps, up to R31,800 for Tokyo with Mount Fuji. Group sizes for the full Asia programme have been reduced to a maximum of 26 people. “We are doing four-day mini-stays. Instead of just giving [travellers] the ho-tel accommodation, we are giving them the full experi-ence… ,” Ms. Szejwallo ex-plained. “A lot of South Africans have been to the East on in-expensive packages [but]

Trafalgar is taking care of all the details… [for] people who want to go on an extraordi-nary experience.” The new 13-day Leisurely Rejasthan with Mumbai is Trafalgar’s first India itiner-ary. Wonders of Sri Lanka and Secrets of Cambodia with Laos span 11 days.

News Digest

Florida bookings so farunaffected by Zika fearsBY SHANNON LATIMER

WHOLESALERS marketing Florida and Disney World are advising clients of the Zika virus outbreak, following a Public Health England advi-sory issued last month on the risk level in Florida, which has been categorised as mod-erate, and advised pregnant women to postpone or cancel non-essential trips. No im-mediate cancellations from South Africans have been reported. In adults, the disease caus-es a mild fever, joint pain and rash. But pregnant women can pass the virus on to ba-bies, who can be born with microcephaly. The World Health Organ-ization expressed concern

over the rapid spread of the virus, particularly in Brazil, in February, potentially af-fecting travel to the Olym-pic Games in Rio de Janeiro. South American suppliers responded by relaxing re-booking and change policies to qualifying passengers and visitors to the most affected areas (‘Zika outbreak threat-ens international travel’ – TIR 360° e-news February 2, 2016). “We have had no cancel-lations for South America or Florida,” said Sales and Marketing Manager, Travel Vision, Annemarie Lexow. John Ridler, spokesper-son for Thompsons Holidays, said: “To date we have not received any cancellation re-quests but, should the virus

spread, this will no doubt change.” Kulula holidays Product Manager Megan D’Arcy, commented: “To date there have been no war n i ngs around travel to this area and we have not been contacted by any passengers querying the outbreak in Florida.” “We check regularly for reports by the WHO and it has not issued any new infor-mation pertaining to the Zika virus,” Ms. Lexow explained. Mr. Ridler said although the virus appeared to be re-stricted to a suburb north of Miami, that could change rapidly. “For the present we would suggest that pregnant travellers proceed with their travel plans with extreme caution.”

Briefly.

The new Dubai Parks and Resorts theme park will open Octo-ber 31. United Europe has been appointed its South Africa rep-resentative. Annual passes are currently on sale and daily passes will be added soon.

Airlink boosts Mthatha, Bulawayo schedulesAIRLINK will operate a second Bulawayo flight and third frequency per week between Johannesburg and Mthatha from the start of this month. The extra flights will operate Monday to Friday on both routes. An addition-al, afternoon f light will be added between Johannesburg and Bulawayo from Decem-ber 12 to January 15, pro-

viding extra seats over the Christmas period. Karin Murray, Airlink’s Sales and Marketing Man-ager, said, on the Mthatha route, the new timetable pro-vided good connections for arriving international and domestic passengers, while the new Bulawayo frequency, a morning flight, would tar-get business travellers.

Pictured above at SWG’s fifth annual conference (l to r): Mohsin Passat, Travelport; Lal Jayamaha and Carol Du Preez, SWG; Robyn Christie, Travelport; Dinesh Naidoo, SWG; Christina Tsakos and Vijen Maharaja, Travelport.

SWG members plan for‘tomorrow, together’BY SARAH CORNWELL

THE SERENDIPITY World-wide Group recognised its top talent during the com-pany’s annual member con-ference and awards evening, held last month in Johan-nesburg. More than 300 sup-pliers, management and in-dependent ticketing agents attended. Di nesh Naidoo, SWG Group Operations Direc-tor, said the conference pro-gramme and theme, Together Towards Tomor row, was planned to help delegates

build stronger businesses. “How do we embrace change in today’s world? What quali-ties are required to grow a brand and business? ITAs are entrepreneurs,” he said. The group addressed is-sues f rom GDS abuse to credit card fraud and ADMs. After five years of operation, SWG now has around 400 ITAs. The top 10 performing ITAs were awarded and, ac-cording to Mr. Naidoo: “The top three generated in the region of R20-million and above.” He said suppl iers had

woken up to the strength and earning power of the ITA market in South Africa and “we are getting calls on a dai-ly basis… The consortiums don’t take them seriously but the suppliers do. We have a maximum number of suppli-ers, so make sure that every-one gets their fair share…” Otto de Vries, ASATA Chief Executive Off icer, heard SWG reaffirm its com-mitment to the association’s industry charter, signed in May as part of a strategy to stamp out dodgy operators and retail practices. “… We are seeing the benefits,” said Mr. Naidoo.

www.tir.co.za

THEGOOD

Comment

twitter.com/TIR_SA

follow us on twitter

EDITORIAL DIRECTORJohn Wardall

MANAGING EDITORSarah CornwellTel: 021 789 0053Mob: 072 772 [email protected]

ASSOCIATE EDITORDominic Wardall

CONTRIBUTORSRichard HolmesSarah RobertsonKate ElsShannon Latimer

PUBLISHERJohn Wardall

ADVERTISINGDominic WardallTel: 021 789 0053Mob: 082 620 [email protected]

Andrew WatsonTel: 021 447 1724Mob: 071 677 [email protected]

[email protected]

ACCOUNTSBeverley GoughBrenda [email protected]

ADMINISTRATIONNerina Nicholson

HEAD OFFICE9 Ruby TerraceNoordhoekCape TownPO Box 745Noordhoek, 7979Tel: 021 789 0053

REPRESENTATIONUK: MW [email protected]

Europe:Colin Murdoch

Thailand:World Media Co.

Malaysia: Raffles Int. Media

PRINTINGFormeset Printers©TTG Southern Africa 2016

Published by:TTG Southern Africa CC

Reg no: 1995/030913/23


THEBAD THEUGLY

Industry ViewSubscription tickets - the next air travel trend?

Thailand has responded quickly to re-store confidence and rebuild its inbound tourism business, following recent terror attacks, with a major, international and comprehensive marketing campaign. It is a lesson other countries could learn, instead of burying their heads in the sand.

SAA continues to dig itself into an even bigger hole. The judgement last month favouring defunct Nationwide and the pending competition case brought by Comair would surely be the deathknell for any normal business not propped up by inexcusable government support.

Suppliers in any industry, dependent on retailer distribution surely know the sen-sitivity of direct selling and train their em-ployees to act accordingly. British Airways now faces a period of rebuilding relation-ships and reviewing its policies following last month’s faux pas.

CONGRATULATIONS to Caron Crocker, an ITC with Club Travel, who was spotted reading TIR in a gondola in Venice’s St. Mark’s Square. Caron is the winner of an American Tourister Bon Air 55cm Spinner suitcase, valued at R1,699.

American Tourister Bon Air, a zipped polypropcollection, prevents brittle breakage. This ultra-tough material is injection moulded to produce a modern look with contrasting horizontal lines on acombination of matte and shiny surfaces. It also features soft-touch handles and TSA locks.Available in Pacific blue, lime green, orange, pink, red, navy, black and white.The American Tourister Bon AirSpinner range of suitcases is available from luggage outlets.

Premium economy addresses market changeAS TIR looks at premium and frequent flyer air travel this month, the airlines are facing the challenge of re-thinking their premium pas-senger strategy and adapting it to the changing economic reality. In one way, they have a pleasing problem – demand for premium economy seats is outstripping supply, so they are going to increase the size of those cabins. But much of the demand is from passengers, particularly cor-porates, downgrading from business class, rather than economy passengers moving up. It may wel l re su l t i n shr inking the number of business class seats instead of economy but that may not

be all bad. In simple terms, if two premium economy seats can be squeezed into the same space as one business class seat and the fare is more than half a business fare – al-though currently they are all over the place – it still pro-duces more flight revenue. But passengers downgrad-ing from business still want a significant improvement in flight experience over stand-ard economy. Premium economy ap-pears to be the answer for to-day’s financially constrained consumers. Business class is typically over-populated with government and NGO cus-tomers, who are not spending their own money – they are spending yours. While premium econo-

my provides the solution for many squeezed corporate travel budgets, the product has to satisfy the require-ments of the companies and the corporate travellers themselves and, so far, some airlines are much better at doing that than others. When premium economy cabins were first introduced, there was little differentia-tion from standard economy. Seats were much the same but with a pret ty useless footrest and a little more leg-room. Meals were marginally better, passenger boarding was done ahead of economy and maybe the in-flight en-tertainment system was up-graded. But, in real terms, which passengers experienced, the

difference hardly justified the increased fare. Now, seats are typically much better, wider and more comfor table, leg room is much more acceptable with more supportive and practi-cal leg rests, meals are much improved, in-flight amenity kits include eyeshades, ear plugs, over-ear headphones and there is of ten an in-creased baggage allowance and priority baggage deliv-ery. So, the difference in the product is becoming much more acceptable for the price and the airlines will get bet-ter at it and passengers more satisfied with the cost/ben-efit as time goes on and busi-ness class cabin size reduces as premium economy grows.

There is no getting away from the fact, however, that a lie-f lat seat is most-pre-ferred for a long-haul flight so, despite some predictions, business class is unlikely to disappear and will still be supported by those who can afford it. But even those people of-ten consider that a saving on the fare can provide an up-grade to a superior hotel for a week at the destination. In other words, grit your teeth for 12 hours but gain a week of added comfort at the desti-nation. That group of people is growing, according to travel agents, so it is in the airlines’ interest to address the trend and premium economy prob-ably provides the solution.

PAID-for subscription services are commonly used to build consumer loyalty. But does the model work for airlines? TravelPass, based in Norway, recently revealed it does, in talks with African airlines intent on bringing the concept here…

“Whether it is entertainment, food or com-munications, consumers are discovering attractive options to repeat shopping for individual products or services. More and more, they are choosing preferred, long-term providers… Companies are getting the message not just about what consumers want, but about the advantage of becom-ing a preferred supplier. Now there are signs that the air travel industry is picking up on the trend and it could prove to be a highly disruptive innovation,” the company said. There is some debate abroad about whether major carriers will start marketing with the model but, TravelPass maintained: “In some ways they already have… Mile-age programmes, loyalty perks, free up-grades, discounts, all are designed to keep the customer coming back and not send them fly-ing off to the com-petition. “While all these might be attrac-tive add-ons, they are not at the core of air-line business models, and they depend on repeat customer decisions for their effect. To ride the growing trend of subscription purchasing, airlines will have to design com-petitive advantages into their core offerings, while convincing buyers that subscription travel means added travel value and con-venience. “Punch-card travel or unlimited travel in a given time period are just two of the tried-and-true solutions that the airline industry can adopt from the ground trans-portation segment. Passengers get a travel model they are familiar with, and airlines get strengthened passenger loyalty and a stronger bottom line.” TravelPass Business Development Direc-tor, David Taylor, said the product was avail-able to any airline, regardless of geographic

location, and that the largest user has more than 100,000 ticketed flyers every month on TravelPass. “They were the lead partner in our development, so they were already sold on the idea when we started out. Now our main focus is communicating the con-cept and the benefits to the rest of the industry. “It represents a fundamental change in the way they do business but, because it works so well, we agree it is only a matter of time before the idea catches on,” he said. Chief Commercial Officer, Henriette Thilert, added: “The airlines like the idea of turning ticket buyers into travel subscrib-ers. They see the value of strengthened relationships and increased loyalty. Corpo-

rations like the ef-ficiency and flyers love the conveni-ence.” The inter-face is fully mobile and intuitive and, Ms. Thilert claimed, “up to 60 percent quicker to use than

a standard airline web page or app”. “While airlines tend to concentrate their market battles around pricing, subscrip-tion travel offers them the opportunity to compete on more than just price,” Ms. Thilert added, airlines can decide the terms for cancellation and refunds, rebooking and billing themselves. “The simplified travel claims alone could be enough to convince many travellers that this is the way to go,” she said. And as consumers grow increasingly comfortable with subscription deals, the company maintained: “The threshold for adopting new subscription offerings has never been lower.”

For more on TravelPass, go towww.travelpass.net

“The airlines like the idea of turning ticket buyers into travel subscribers. They see the value of strengthened relationships and increased loyalty. Corporations like the efficiency and flyers love the conveni-ence.” – TravelPass

News Digest

Retailers seek fair playin direct booking threatBY SARAH CORNWELL

TR AVEL agents are de-manding fair and equitable treatment, following increas-ing complaints of inconsist-ent booking conditions and promotions by suppliers that put them at an unfair disad-vantage. Competition is already se-vere from multiple booking channels but agents say sup-pliers’ direct booking strate-gies are making it increas-ingly difficult to do business. Br it ish Ai r ways came under fire last month after reports of controversial com-ments by its call centre staff, which appeared to try and persuade customers to deal directly with the carrier in order to receive preferential treatment (‘BA faces back-lash from agents over call centre comments’ – TIR 360° e-news, August 15, 2016). The airline strongly denied there was any difference be-tween trade and direct book-ing conditions but retailers argued their clients had been told they could have avoided certain penalties when can-celling bookings due to ill-ness, if they had booked with the carrier direct. “The call centre should have advised the agent to contact the account manager. We are addressing the issue with the call centre to ensure if does not happen again,” said spokesman Stephen Forbes, after a second inci-dent was reported. One complainant, Mela-nie Tucker, owner of Mel Tucker Travel in Hermanus, claimed airline employees said the airline would have waived penalties for direct bookings but not through a travel agent. “I spoke to three different people at BA and they all said the same… Three people singing the same song… They have been advised. That is for me what is more troubling… Shame on BA for their underhand, unfair practice.” BA maintained all waivers were considered on a case-by-case basis or, in case of illness, before travel when proof could be provided. Although the airline said it used different channels for direct and trade bookings owing to “a potential abuse of the waiver” the airline conceded: “Categorically verifying proof of illness via a third party in our call cen-tres, who are not as aware of customers’ relationships is understandably problematic” and “although waivers are processed through different channels, there is no discrep-ancy between the trade and direct servicing capability and we are committed and enthusiastic supporters of our trade partners in South Af-rica”.

Wally Gaynor, Managing Director of Club Travel, who complained to BA after a sim-ilar experience last month, said, broadly speaking, direct strategies were a threat to agents. He said: “Without a shadow of a doubt, they are intensifying… I would love BA to listen to consultants who used to be big support-ers but off-sell them, very simply, because they have been at the receiving end of unfair, unethical business practices like ADMs. This call centre fiasco is just an-other example.” Mr. Gaynor charged: “Per-sonally, I do not believe this is an isolated event. I believe it was a strategy decided in London by some bright sparks who also decided that ADMs were the best source of revenue, even though their accountants can’t quantify what percentage of business they will lose. “We are meant to be busi-ness partners and my job is to drive business for our mutual benefit but [some suppliers] embark on strategies like this that undermine the relation-ship and make it difficult for me.” Agents have had to adapt when suppliers have openly targeted more direct sales to lower distribution costs. Point of sale distribution policies are another point of contention for retailers, who say seat availability can be severely limited as inventory is reserved for markets that provide higher yields. “Agents are having to sell tickets outside of South Af-rica because of point of sale,” Ms. Tucker said. She complained of “an-other level playing field of-fer” from a different overseas carrier last month, which she said could not be booked through her GDS. “When I called at the beginning of the year regarding this problem, the rep told me that [they] did not ever offer the public better fares than what was of-fered on the GDS but, again, that is a lie because they do and have done since late last year. We get… [from this air-line] seat sales offered to the public every couple of weeks at lower fares than what we can sell. Then they blame the GDS…” “The business practice is not new and we have learnt to live with suppliers’ di-rect strategies,” commented Claude Vankeirsbilck, Chief Sales & Marketing Officer at Tourvest Travel Services. He said, with both suppliers and retailers facing intense com-petition, partnership relation-ships were being strength-ened “now more than ever before… We ensure we stay very close to our suppliers to ensure they don’t threaten our win-win partnership and

relationship, so we don’t see suppliers as a threat,” he said. “Ultimately, corporates who have sound f inancial discipline and mature travel policies understand the need for cost control and this is the value of a TMC… There might be occasions when a supplier dumps unsold inven-tory or drives special offers through their direct channels [but] we have very creative ways and means to access this for our customer… we are able to prove our value.” Jonathan Gerber, Travel Assignment Group Director, challenged the sustainability of the sector if relationships were not preserved. “What astounds me is how old, reliable and proven re-lationships are being thrown to the wind in a last ditch attempt to try and woo the customer on an individual basis at any cost. [The] bot-tom line is that the customer belongs to the customer, they will ultimately choose what works best for them. Direct strategies unfortunately do not… as the supplier cannot always assist. “As TAG we are always looking for long term mutu-ally beneficial working rela-tionships, both with our cli-ents and our suppliers, trying to add value within the chain to both, which is possible. Yet we are finding suppliers going away from this look-ing for their own deal which I believe will be to their own long term detriment. Our job as agents is always to sell the best deal to our clients that is not always the cheapest but rather best-matched prod-uct. Why won’t they allow us to do that in a fair environ-ment?” Mr. Gaynor believes these matters demand interven-tion. “ASATA should be hav-ing these conversations… It is about survival of the indus-try. It is about relationships and the survival of the travel trade. It is not up to individu-als to fight this,” he said. “The airlines believe, if a passenger goes to their website, they will never go elsewhere. But they have us. Why are they working against us?” Ms. Tucker said. “The ASATA relat ion-ship assists where possible in promoting the partnership with retail travel agents how-ever, we believe suppliers are looking at alternate sources of revenue,” said Marco Cris-tofoli, Chief Operating Of-ficer, BidTravel Leisure. He felt direct booking strategies had “definitely” become more of a threat, adding: “Yes, we have found that suppliers are follow-ing the trend in business of disintermediation. Partners’ advertising calls to action refer to their website or to

continued on page 8


tionals are in the pipeline, Mr. Ridler revealed. “South America has al-ways been popular with the South African traveller but interest dropped over the past few years. Thompsons foresees an increase in in-terest after the publicity of the Olympic games [and] LATAM has provided excel-lent fares to Brazil, Argen-tina, Chile and Peru, which will certainly stimulate the market,” he said. However, Sean Hough, Pentravel Chief Executive Officer, commented: “I can’t say we have seen any major Olympic fever from our cli-ents.” Club Travel Product Man-ager Lucinda Tyler said, per-haps, the official LATAM launch f light would attract more interest to the area. “We have had very little, if any, enquiries or quotes com-ing in for the Olympics.” But, “The additional de-mand to the region that SAA has seen has been particular-ly welcome in August, which is traditionally when demand is low on this route. We an-ticipate that we will see the same effect during Septem-ber, due to the Paralympic Games,” said Mr. Tlali. Theresa Szejwallo, Tra-falgar Managing Director suggested: “As experienced after the London Olympics in 2012, we are expecting to see demand for all of Latin America to increase and with the announcement that LATAM will commence regular f lights to and from South Africa from October… “Trafalgar has seen steady increases in our sales for Latin America… [which] we attribute to the comprehen-sive nature of our product and that it is hassle-free,” she said. Com merc ia l Di rec tor


... revive South America business News Digest

UK, Nordic Countries and Africa for LATAM, Mar-tin Modarelli, believes the 2016 Olympic Games has not only raised the profile of Bra-zil, but Latin America as a whole. “Sales on the new JNB-GRU route are currently go-

ing well, and we will be roll-ing out a variety of tactical and promotional campaigns aimed at showcasing the val-ue that destinations in Latin America offer to travellers from South Africa,” he said. Promotional campaigns will be key said Mr. Hough. “Most of our clients are not aware of LATAM. It is going to be a big job to drive aware-ness and demand...” “We are busy working on packages using our LATAM special fares. These are com-ing out much more competi-tive than before and hope-fully this is going to trigger the market but at this stage it has been very quiet,” said Ms. Tyler. Kelly Jackson, Contiki General Manager, said the operator would work with the airline to grow interest and that “Latin America is defi-nitely one region that is see-ing increased interest from youth travellers…” Contiki’s

Operators and retailers were concentrating on new South America flights to build South America sales while the 2016 Rio Olympic Games got underway last month.

Photo: André Luiz Mello

South America programme includes 27 trips across eight countries. Rates are from R2,109 per day. “Our research indicated that there is a strong demand for a route like JNB – GRU... The BRICS link between Brazil and South Africa is

important and we believe that the route will boost busi-ness opportunities between the two countries,” said Mr. Modarelli. If the route did well, he said, LATAM would defi-nitely consider increasing the schedule.

TBCSA elects new chairmanTHE TOURISM Business Council of South Africa has elected former South Afri-can Reserve Bank Governor Tito Mboweni as Chairman. The appointment was ratified at the organisation’s annual general meeting last month. Mr. Mboweni replaces Ma-vuso Msimang. Mr. Mboweni was Minis-ter of Labour from 1994 to

1998 and governor of the Re-serve Bank for 10 years. Cur-rently, he is an international advisor to Goldman Sachs International and chairman of several other companies. Ravi Nadasen, from the Tsogo Sun Group, will be Deputy Chairman, succeed-ing Clifford Ross of the City Lodge Hotel Group. Mr. Ross will remain a board member.

Retailers seek fair play...book through a local travel agency… In this economy, suppliers and retail agents alike are trying to secure al-ternate revenue streams and I believe no supplier is exempt from this mindset.” Mr. Gerber maintained: “... Suppliers made their most money when they entrusted their product in the hands of their selected experts, the preferred agents. Since then, all we have seen is margins shrinking, costs going up and expertise fading. I say, bring back the days of the expert agents selling quality sup-plier product and everyone will be happy again. “Suppliers must focus on bringing best product to mar-ket and retailers must focus on being product experts in a market. That is the only way

that we can all survive; there is no way that you can be a wholesaler, retailer, loyalty provider and provide lowest possible price and best pos-sible product... the only way we can do this is together. As an example, for what the airlines pay an agent, there is no way that they could recre-ate that sales channel them-selves... there is no trust and ultimately that will cost all of us. Choose your partners, stick by them and let them be experts in their respective fields. That is certainly the business model we will con-tinue to employ.” ASATA Chief Executive Officer Otto de Vries main-tained: “Professional travel agents work with their cus-tomers to assess what the best travel solution based on their preferences and budg-


Gauteng-based tour operators and travel agents were invited to tour the newly-upgraded Shongololo Express last month. Rovos Rail purchased the train in January. “The Shongololo is a three-star product which now offers five-star service,” said Damien Sadie, Rovos Rail General Manager. Itineraries cover South Africa, Zimbabwe, Swaziland, Mozambique and Namibia. Pic-tured above (l to r): Takashi and Kazue Miyata, Planet Africa; Clara Del Castello, Liberty International and Regárdo Lewis, Rovos Rail.

et. It is our responsibility to provide the customer with professional service, ethical conduct and trustworthy be-haviour, using our informa-tion sources, expertise and judgment to help consumers make the choice that is best for them in a marketplace that has a range of options available. We go beyond the transaction. Rather, ensuring that we assist our customers with end-to-end value-for-money solutions so that their travel is not only painless, but also pleasant. “A supplier message that sends the message to con-sumers that they should be liaising with the supplier di-rectly fails to acknowledge the crucial role that the travel

agent plays in consulting, ad-vising and ensuring that the customer travels with peace of mind. The consumer ben-efits directly from the travel agents’ breadth of experience and professional help – this relationship goes beyond the transaction. The travel agent furthermore has a duty of care role to play for travel-lers, assessing the current context of the traveller and drawing on their expertise to provide the best advice and strive for the security and wellbeing of travellers... Corporates need TMCs to look after their staff through technology and strong net-works, as the ramifications of negligence on corporate employers can be serious.”

TIR Southern Africa • September 2016 9

Briefly.

The Norwegian Cruise Line Free at Sea booking promotion has been extended until September 18. Includes value-adds of up to US$2,800.

Silversea has special fares for sector voyages in its Silver Cloud South Africa and Indian Ocean programme from US$1,232. Departures from Cape Town, Durban and Walvis Bay.

Cruise pricing initiativesare working in South AfricaBY SHANNON LATIMER

THE industry has seen a pro-liferation of tactical fares and incentives from cruise lines, which have boosted the ap-peal of cruise holidays. “2016 has been a chal-lenging year, booking-wise, so we have seen the book-ing incentives offered to passengers increasing this year. Most cruise lines do offer some form of passen-ger incentive during the peak booking period,” commented Triton Cape Sea Travel Sales and Marketing Manager Ian Mathews “... Cer tainly with the cruise lines which we rep-resent, they have always of-fered early booking benefits and on-going promotions throughout the year,” said Gaynor Neill, General Man-ager of Cruise Vacations. Pricing initiatives vary be-tween cruise lines, she said. “Silversea encourages early booking through its Price Guarantee, however they do offer a variety of promotions throughout the year. These might include the choice be-tween a substantial onboard credit or a double category upgrade, for example. Re-cently, Silversea has been offering a 10 percent saving early booking bonus, which requires guests to pay in full by a specified date.” Cunard is working with local GSA, Whitestar Cruise and Travel, on its future line-up with special rand fares to strengthen its growing busi-ness from this market. Spe-cial fares have already been made avai lable for west and eastbound transatlantic crossings and more 2017 sail-ings out of South Africa on-board the newly-refurbished Queen Mary 2. Regent Seven Seas GSA, Encore Cruises, has seen “great pricing… really ex-ceptional” for the new Seven

Seas Explorer’s maiden sea-son in the Mediterranean this year (‘Regent Seven Seas Ex-plorer launches its maiden season’ – TIR August 2016). “The launch… has gener-ated a lot of interest in the market,” said Encore Cruis-es’ Janine Pretorius. “Guests who have already travelled on the Explorer have been overwhelming in their reac-tion to the ship.” Despite market challeng-es, Ms. Pretorius said: “Rates of exchange have not been a determining factor with Regent passengers. We have found, in the six-star mar-ket, when passengers want to travel, they do… I believe that travel agents can push the convenience and inclu-sivity of a Regent cruise and that there really are very few additional costs.” Value-adds remain an ef-fective sales tool and, Mr. Mathews commented, many cruise lines are offering free add-ons. “Such as free drinks packages, shore excursion credits, free Wi-Fi, free spe-ciality dining or free pre-paid gratuities. Some also offer a saving where the second pas-senger either cruises free or pays half price.” “We have found the free drinks package and the sec-ond pax sails free or pays half to be the most popular offer-ings taken up by our custom-ers,” said Mr. Mathews “The Queen Mary 2 has been to South Africa a couple of times and was the favour-

ite. And with Queen Eliza-beth and Victoria having sold so well, the rates we have been given for the South Af-rican market are fantastic,” Shaun McCarthy, Whitestar Cruise and Travel General Manager, said earlier. The advice is to book within the normal booking period, usually December through April. But as 2016 has seen, “cruise lines have either extended the spe-cials or created new ones to boost bookings,” said Mr. Mathews. Good deals may be made closer to sailing dates on voy-ages with lower availability. But this is generally not ad-vised, unless the customer is more of a last minute deci-sion maker. “Availability is always the question and for clients who are very specific about itinerary and travel dates, then taking advantage of early booking offers is, of course, recommended,” said Ms. Neill. There are always terms and conditions agents should be aware of. “All promotional fares and early booking in-centives carry terms and con-ditions which include dead-line dates and, in the case of Carnival’s promotional fares, stricter cancellation and name change policies,” said Ms. Neill. “Some of them have a booking t imeline, others at t ract a service fee that must be pre-paid for,” Mr. Mathews advised.


ment, and that is a figure we don’t have an idea of at the moment… Then there is the Internet, where people could be booking online with international operators. [Those numbers] would be lost completely and we would have to factor in a guesstimate of what that volume is.” Whitestar Cruise & Travel General Manager, Shaun McCa-rthy, has offered support for the project and believes the initiative could play a key role in growing future sales. “We are primarily interested in the long-haul cruise market, which continues to expand as the middle class in South Africa grows. For us, the market is not just about the number of cruise passengers but all outbound holi-daymakers who could potentially be converted to cruising,” Mr. Mathews said. “The potential lies in attract-ing more consumers to choose a cruise over a land-based holiday and not to attract someone who is a cruise customer already to change brands,” said George Ar-gyropoulos, Cruises International Chief Executive Officer. He said passenger volumes out of South Africa were still small relative to the total number of overseas holidays. “We have a guesstimate of what the total cruise market is, [that is] international cruises not embarking or disembarking in South African ports… What would be far more useful is to know the total annual number of South African residents who buy an international holiday,” he said. Gaynor Neill, Cruise Vaca-tions General Manager, observed: “… Two years ago, cruise GSAs [gathered] at a meeting initiat-ed by myself and arranged by George [Argyropoulos] with dis-cussions mainly about the role of the GSA in general. Forming a forum of sorts was discussed and possible future combined work-shops or training, etc, but noth-ing much further progressed. If nothing else, it was a worthwhile networking opportunity and gen-erally good to see that, whilst representing competing products, as an industry sector, we all sing from the same song sheet… “… Our portfolio is largely luxury and niche… We do not measure results or set targets by

passenger number but, rather, by revenue. Despite the economy and volatility of the rand in recent years, since re-branding Cruise Vacations six years ago, we have steadily grown year on year and consistently hit those revenue tar-gets,” Ms. Neill added. “The economic conditions in South Africa have a significant effect on international travel but we see a much stronger 2017 de-veloping,” said Mr. Argyropou-los. He maintained travel agency

sales had the potential to grow significantly. However, he noted: “Even in this difficult economic environment, we have increased our marketing and sales teams, as well as marketing spend. Unfor-tunately we do not see an equiva-lent uptake by our travel agents, which is very disappointing. We want our travel agent partners to enthusiastically and proactively get involved in selling cruises. The benefits for them are as many as the benefits to their clients.”


... cruise industry review Stefan Lowe of Trigon Travel and Antoinette Cilliers from Flight Centre Associates, were the winners of U n i wo r ld ’s late s t agent educational booking incentive. Both won a seven-night European cruise for two. Uniworld ’s next incentive will be revealed this month. P i c t u r e d : S t e f a n Lowe and Tania Cor-reia, TTC Area Sales Manager.

MSC cruises issues 2017/18 programmeBOOKINGS for MSC Cruises’ 2017/18 South Africa programme opened September 1, with a 50 percent early-bird offer for ad-vance bookings and a new desti-nation. Allan Foggitt, Commercial Sales & Marketing Director, confirmed the new season would run from November 2017 to May 2018, operated by the MSC Sinfo-nia. New ports of call would only be revealed when sales opened.


MSC plans Western Med debut for second Seaside ship in 2018

SALES have opened for MSC Cruises’ newest Sea-side-generation ship, the MSC Seaview. The vessel will spend its inaugural 2018 season in the Western Mediterranean, sail-ing out of Genoa, Marseille and Barcelona. It will in-clude calls in Naples, Messi-na and Malta. Chief Executive Officer, Gianni Onorato, described the new build as “one of the industry’s most innovative-ly-designed ships”. It will

feature the highest ratio of outdoor space per guest at sea and a beach condo design concept, with outdoor dining areas, more balcony cabins and a 360° promenade with glass balustrades around the entire ship. Near Field Communica-tion, which uses a cruise card, bracelet or smartphone, will let passengers geo-locate children, provide cabin ac-cess and facilitate onboard payments. Passengers can se-lect excursions from interac-tive screens, as well as book shows and restaurants.

BY SHANNON LATIMER

NCL plans vesselexclusively for ChinaNORWEGIAN Cruise Line’s new Norwegian Joy, the com-pany’s f irst ship designed exclusively for the Chinese market, is due to enter ser-vice next year. Features include VIP ac-commodation, a new Con-cierge category and gourmet

dining. For families, it will feature an interactive Galaxy Pavil-ion with bumper cars, Oculus Rift virtual reality, car racing simulators and the first race track at sea. The ship will be based in Shanghai and Tianjin.

Mediterranean still leads local salesBY RICHARD HOLMES

THE MEDITERRANEAN and Caribbean remain the most sought-after regions for local cruise passengers. “Europe and the Caribbean tend to be bucket list destina-tions, but unfortunately can be very costly for South Af-ricans,” said Thaybz Khan,

brand manager for Cruises International. Cruises out of Dubai were also growing in popularity. “ T h e M e d i t e r r a n e a n is always our best seller… Norwegian Spirit sails the Mediterranean year-round, with a combination of East-ern, Western, Canary Islands & Morocco, and Holy Land cruises,” said Ian Mathews, Triton Cape Sea Travel Sales

Regent Seven Seas Cruises’ new Seven Seas Explorer (above) made its debut in the Mediterranean in July. Local GSA, Encore Cruises, said fares for the first sailings had been “exceptional”.

and Marketing Manager, adding that nine-night Baltic Capitals cruises are popular, particularly as the visit to St. Petersburg is an overnight stay. Gaynor Neill, Cruise Va-cations General Manager, said the combination of easy air access and minimal visa requirements made the Med-

iterranean particularly in de-mand. “Festive season passen-gers also favour South East Asia and the Caribbean and also cruises in local waters and Indian Ocean when available,” she said. The two- and three-night Portuguese Islands cruises are a safe sale as “it feels like an international holiday, without the expense and has-

sle. Kids under-18 also cruise for free, so it is very afford-able”, said Allan Foggitt, MSC Commercial Sales and Marketing Director. “For a first-time cruiser, we would definitely recom-mend the Mediter ranean programmes,” said Janine Pretorius, Encore Cruises. “Regent guests from South Africa travel on all the ships but possibly with a slight preference for the Seven Seas Voyager.” Regent Seven Seas appeals to a high-end cruise client but its all-inclusive fares are just one selling point. Shore excursions, Wi-Fi, speciality dining, gratuities and pre-cruise hotel accommodation are all included in the fare, Ms. Pretorius emphasised. “Fully-inclusive fares hold enormous appeal,” added Ms. Neill. “The educated traveller is well aware of the value for money aspect of inclusions such as drinks and

Cruises International has a seven-night Western Caribbean sailing onboard Oasis of the Seas, leaving Fort Lauderdale on December 4 from R14,760. Ports of call include Labadee, Haiti, Falmouth and Cozumel.

An 11-night Eastern Med and Holy Land sailing onboard the Norwegian Spirit, de-parting Venice November 28 with calls in Croatia, Greece and Israel, is from US$1,160. Contact Triton Cape Sea Travel.

Cruise Vacations has a nine-night Athens to Venice sail-ing onboard the Silversea Silver Spirit (pictured right) from US$2,950. Departs October 10.

Sell these

gratuities. Particularly with the volatility of our currency, the ‘pay more before you go, less by the time you come home’ concept is appreci-ated.” Itineraries and stop-overs are typically the deciding factor of any cruise purchase

but helping a customer to choose the right vessel is as important. For family cruising, Royal Caribbean is hugely popular in the local market. “[Be-cause] Royal Car ibbean ships are multigenerational, it gives them a huge com-petitive advantage,” said Ms. Khan. Norwegian Jade and Nor-wegian Epic are particularly popular with local travellers “as they offer seven-night it inerar ies and are great

for famil ies…” said Mr. Mathews. Similarly, lines like Celeb-rity Cruises and Silversea are well suited to professional couples and mature travel-lers, while river cruising con-tinues to attract a growing market.

“Scenic Cruises and Em-erald Waterways have recent-ly introduced cruising on the Douro River in Portugal…

“… With the volatility of our currency, the ‘pay more before you go, less by the time you come home’ concept is appreciated.” – Gaynor Neill, Cruise Vacations

which is receiving a lot of enquiries,” said Ms. Neill. “On the luxury side, Crys-tal Cruises is our most popu-lar six-star choice for large-ship cruising, with Seabourn most popular for small-ship cruising,” added Ms. Khan. “Seabourn is also able to

offer itineraries that are not necessarily possible with larger cruise ships, because of its smaller size.”

Photo: Regent Seven Seas

British Airways World Traveller PlusB747-400 Cape Town – London Flight Check

STREETS ahead of the economy experience. The seats do not lie flat but are com-fortable, wide and have plenty of legroom. In-flight service was as good as business class on the way back from London, the only difference being the seat and lounge access. Good announcements, check-in and on-time performance. Meals were actu-ally better than the business flight back. Worth the extra money over economy and a good option for those who have to reduce the cost of business but can’t handle the cramped quarters of economy.

75_Seating

Overall rating: 84/100

70_Food

90_Attitude

75_Aircraft

90_Check-in90_Service

100_On-time performance

85_Onboard announcements

Premium product innovation reaches new heightsBY RICHARD HOLMES

WITH demand for long-haul premium cabins showing strong growth, airlines are innovating to attract pas-sengers willing to pay for onboard comfort. And inter-

national carriers are intro-ducing their next-generation premium products to South Africa. One of the latest arriv-als was Singapore Airlines A350. Johannesburg is the second destination to receive the new aircraft, which in-cludes SQ’s latest-generation business class. The A350 will initially op-erate three flights per week, although frequencies will increase to cover all seven weekly flights into Johannes-burg, including the extension

to Cape Town. Ethiopian Airlines has also invested in the A350. It was the first carrier in Africa to fly the aircraft. “Africa’s first A350 will provide new features such as wider seats in both busi-

ness and economy classes, the lowest twin-engine noise level, advanced air condi-tioning technology and full LED mood lighting,” said Abel Alemu, Regional Man-ager Southern Africa. When LATAM Airlines launches its inaugural São Paulo – Johannesburg flights next month, it will do so with a Boeing 767-9, with latest generation cabin product. From February 1, Emir-ates will upgrade the first of its four daily flights from Dubai to Johannesburg from

a Boeing 777 to an Airbus A380-800. SWISS is currently renew-ing its entire long-haul fleet, replacing its Airbus A340s with Boeing 777-300 aircraft f it ted with new economy, business, and first class prod-

ucts. This includes a private suite in first. British Airways continues to pile capacity and product onto South African routes and “has just completed a major makeover of 18 of its Boeing 747s, giving them the same... interior look... as its newest aircraft”, remarked spokesman Stephen Forbes. “Each 747 now features 34 additional Club World seats.” The refitted 747 aircraft are currently operating key long-haul routes, including New York, San Francisco and

Johannesburg. “From October 30, British Airways will also add more A380 services to the Johan-nesburg schedule. From Oc-tober 30, this will increase to 10 a week,” said Mr. Forbes. “In all, the expanded A380 schedule and enhanced Boe-ing 747s will account for a 15 percent premium capacity increase.” Air France and KLM have also overhauled their premi-um long-haul product, with a new business class.

Air France currently flies its new Business and First product to Johannesburg on two 777-300 f lights per week. Seats have improved aisle access, pr ivacy and storage space, while KLM’s new World Business Class product has a new seat lay-out. André Schulz, Lufthansa General Manager for South-ern Africa, said the airline had “seen a trend towards premium travellers wanting more personalised services”

and discussed plans to re-vamp the airline’s onboard meal service. Trolleys will remain in the galley and f light attendants will now offer a restaurant-style table service, while, Mr. Schulz explained: “Each f light attendant will have a set number of passengers for whom they will act as a per-sonal host and point of con-tact. There will be additional cabin crew in business class on long-haul flights to enable this.”

LATAM Airlines’ latest lie flat Business Class seats.


Singapore Airlines Premium EconomyAirbus A350-900 Singapore – Johannesburg Flight Check

THE new A350 now operating between Johannesburg and Singapore and, later this year Cape Town, is an upgrade in in-flight experience. Higher ceilings give a more spacious feel and the lower cabin altitude, increased humidity and bigger windows provide added comfort. The new soft leather seats had a better recline, with the seat sliding forward as the back reclined. Footrest helped but a legrest would be more practical for people with shorter legs and a little more width would increase comfort. Very good video screen and excellent, polite and friendly service. Amenity pack only included socks and toothbrush and really should include eye shades. Spotless bath-rooms and an overall quality product. Worth the extra over economy, if you cannot spring for the airline’s exceptional new business class.

80_Seating


75_Food

100_Attitude

95_Aircraft

90_Check-in100_Service

100_On-time performance

90_Onboard announcements

Customers find value in premium faresBY RICHARD HOLMES

DEMAND for premium cab-ins on short-haul services has declined but long-haul demand remains strong, led by South Africa’s corporate market, strong inbound de-mand and competitive fares on new and connecting inter-national routes. Marco Cristofoli, Chief Operating Officer: Leisure, for BidTravel, reported: “Cli-ents who are used to a cer-tain type of travel, will con-tinue to travel in business. It is very difficult to travel in a lower class when you have grown accustomed to premium, especially on long haul flights.” “With the addition of our Boeing 787 Dreamliner on the Johannesburg – London route, we have found that our f lights are now fuller than ever,” said Darrin Thomas, Virgin Atlantic Marketing and Communications Man-ager. Virgin Atlantic reported load factors of up to 92 per-cent into Johannesburg this year. Country Manager, Liezl Gericke, said Johannesburg was outperforming most other international routes on the airline’s network. Most of that demand was for pre-mium seats, she said, and ap-proximately 70 percent of business from South Africa was corporate (‘No current plans to reinstate CPT flight

says Virgin Atlantic’ – TIR July 2016). Danica Helfrich, Head of SWISS South Africa, said the mix of travellers in pre-mium cabins had shifted to more Europeans than South Africans and: “The premi-um cabin remains on a high and stable seat load factor on flights into and out of South Africa.” “Without a doubt the pre-mium cabins are always in big demand on the routes into and out of South Africa,” said Wally Gaynor, Managing Di-rector of Club Travel, but that inbound traffic was dominat-ing premium demand. Delta Air Lines has big plans for its new Delta One cabin, with an all-suite Busi-ness product in the pipeline. Set for introduction on the airline’s first Airbus A350 in late-2017, the cabin will have 32 Delta One ‘suites’ with sliding doors for privacy, 18-inch screens and in-seat power. The airline has continued to see strong demand in the Delta One Cabin between Johannesburg and Atlanta, according to Jimmy Eichel-gruen, Regional Sales Direc-tor for Africa, who said load factors remained “very high for this cabin”. While premium demand remains strong, there is an element of price sensitivity. Flight Centre Air Product Leader, Karin Smit, com-

mented: “Our passenger numbers indicate that the economy has had no real im-pact on premium class travel. However, we have noticed [a change in] the choice of carrier; a switch to a more affordable indirect route is on the increase.” With fares on direct routes often double those of indi-rect f lights via the Middle East, “at peak times it is even worth comparing economy direct with business class via the Middle East”, said Mr. Gaynor. The continued demand is down to the fact that corpo-rate travellers still find value in paying for premium cab-ins, according to Ms. Smit: “This falls in line with many of our corporate customers’ travel policies due to arriving in destination and having to work a full day.” “ B u s i n e s s t r ave l l e r s

choose premium business to give themselves an opportu-nity to work on the move, and arrive at their destinations ready to work,” said Martin Modarelli, Commercial Di-rector UK, Nordic Countries and Africa for LATAM Air-lines.

There is still rising interest in premium economy products, which strike a balance be-tween comfort and cost. British Airways has long offered its World Traveller Plus cabin, while the likes of Cathay Pacific, Air France and Virgin Atlantic have all launched premium economy cabins into the local mar-ket. Qantas reports strong demand for its premium economy service on its direct Sydney route. Singapore Airlines recent-

ly introduced its premium economy product on its Jo-hannesburg route, following the introduction of a new Air-bus A350. Features include priority check-in, boarding and baggage handling; larger seats with increased recline and improved food and bev-erage services. For corporate travellers in particular, the cost of a premium ticket has value be-yond the wider seat. “Lounge access is a huge benefit, even if customers are not travelling in a premium cabin,” said Ms. Smit. “Cus-tomers buying lounge access is becoming popular [and] chauffeur drive also tends to be popular.” “Premium travellers are looking for more benefits beyond the onboard experi-ence,” agreed Ms. Helfrich. “While priority boarding re-mains a firm favourite, addi-

tional benefits sought include a better experience within the lounges, and for f irst class travellers a chauffeur service is often requested.” Lufthansa has invested heavily in the ground expe-rience for top-tier passen-gers. First class and HON Circle members in business class have access to a ramp transfer service on arrival in Washington. There is a transfer to a pri-vate immigration and cus-toms area. The airline claims the process will take around seven minutes. Ancillary benefits such as loyalty mileage accrual is key to premium demand. Airlines are also using customised smartphone apps to differentiate themselves, with many enabling passen-gers to select seats, download boarding passes and track baggage.

Premium economy& other paid-for perks

Emirates will upgrade the first of its four daily flights from Dubai to Johan-nesburg from a Boeing 777 to an Airbus A380-800 (pictured left) from Febru-ary 1. The A380 service will be oper-ated as a codeshare with South African Airways.

Virgin Atlantic has introduced new relaxation aromatherapy kits for Upper Class passengers, with products by This Works and de Mamiel, including an Enliven range for day flights and a High Altitude blend for night flights.

Cemair will begin flights between Bloemfontein and Port Elizabeth on October 4. Launch fares are from R1,599.

Fastjet was awarded the Transport Innovator Award for the second consecutive year at the recent 2016 Transport Africa Awards, held in Johannesburg, and was recognised for its approach to making air travel more affordable. The airline has flown more than two-million passengers since it launched in November 2012. While it has reported a high volume of repeat passengers on its domestic and international routes, a recent study by the carrier showed up to 40 percent of passengers on all fastjet routes were first time flyers. fastjet’s busiest destination from Dar es Salaam is Mwanza. The busi-est international route is Johannesburg.

Emirates is making special exceptions for oversized baggage, including sports, music equipment, wheelchairs and strollers, until March 31. Approval must be granted by lo-cal sales support teams and the conditions are for travel on Emirates flights only. The items must be less than 300cm /32kg and will be transported as cargo, not checked baggage.

Briefly.

New email addresses have been provided for Qantas’ reservations and refunds departments. For general reservations: [email protected]. For the Refunds/ADM & ACM departments: [email protected] and [email protected], respectively.

Cathay Pacific has launched a Global Contact Centre with a specific South Africa toll-free number; the travel agent contact number is: 0800 611 208.

by John Wardall

Raffles would be proud of progress

continued on page 16

A


Personally Speaking

s an example of what impressive things can be achieved with very little, probably nowhere illustrates

that better than Singapore. It is unrecognisable from the old colo-nial outpost where I was based for a while many years ago. And, each time I revisit, it has become more modern, prosperous, go-ahead and technologically advanced. The politically benevolent system of demo-cratic authoritarianism has created a society which has avoided the disruptive and dam-aging excesses of behaviour in the major Western liberal democracies and provided an efficient, orderly, prosperous and largely crime-free environment. It is underpinned by a dedication to education, work ethic and order. Take your pick. I suspect most South Africans would have little hesitation in choosing. 1,000 cargo ships a day arrive in Singa-pore and the country consistently records a trade surplus and under-budget spending. It has enabled unmatched development, maintenance of infrastructure, high-quality housing for every citizen and a flat income tax rate for Singaporeans of seven percent. Considering the fact that the island has virtually no natural resources, it is a remark-able achievement. And it all started from a remote outpost of the British Empire, fol-lowing the break-up of the Federation of Singapore and Malaysia in 1965, when there was concern about how the little island nation could survive, let alone predictions about what was to be achieved. The vision and implementation of the late Lee Kuan Yew, the architect of today’s Singapore, is unparalleled. It is the only country I am aware of which has an eco-nomic and development plan for 100 years into the future. I have a soft spot for the place, having briefly met Lee Kuan Yew in the early days and watched the country develop into its economic and social success. No home-less, no poverty, no slums, no beggars and virtually no crime or unemployment. It has retained the best legacy of the past and melded it with the best of the present and, no doubt, future. Sir Stamford Raffles, the founder of Singapore, would be proud; and nobody has tried a Raffles Must Fall movement to remove either of his two statues, one at Raf-fles Landing Site on the Singapore River, the other at Empress Place! Vandalism doesn’t exist in Singapore. Changi Airport puts most of the ma-jor city airports in the rest of the world to shame with its facilities and development. It handled 54-million passengers last year.

There is a fourth terminal planned to open next year and another by 2025, when it will be able to handle 135-million passengers a year. About 80 percent of Singapore Airlines’ passengers out of South Africa are connect-ing to onward destinations and this provides an excellent opportunity for short-break packages. To encourage growth in that busi-ness, the carrier will shortly introduce a 25 percent discount on its Singapore Stopover Holiday programme, covering all of the island’s major attractions and many hotels. The airline has a Travel Agent Quick Booking Guide to facilitate sales. I could spend a full two-week holiday in Singapore but, for a short-break experience, I would recommend four days, particularly for families with children, who would want to spend more time than single adults or

couples on Sentosa, where they could take in Universal Studios, the S.E.A. Aquarium and the Adventure Cove Waterpark. The new M Social Hotel last month was the base for a quick visit to some of Singa-pore’s attractions. The hotel’s interior was designed by Philippe Starck, whose numer-ous projects include some of the hotels I like to stay at in other parts of the world – The Clift in San Francisco, The Mondrian in Los Angeles and the Hotel Meurice in Paris. It is not one of the most expensive hotels in Singapore but has Starck’s quirky touch, a very nice, reasonably-priced restaurant, small but comfortable rooms with beds on a mezzanine level and a very friendly, help-ful and efficient staff. I was impressed when the boarding pass for my return flight was printed by the assistant manager, who de-livered it personally to my room. The hotel is also well located next to the Singapore River, its pathways lined with restaurants, bars and nightclubs.

What a pleasure to go out for the even-ing and stroll back to the hotel late at night without any concern for personal safety. A drive through Mount Faber Park takes you to the Faber Peak restaurant for an ex-tensive buffet lunch of local delicacies and stunning views towards Sentosa. The peak is connected to Sentosa by cable car. A new experience was at Kim Choo Kush Chang to get an overview of the fascinat-ing Peranakan culture. The Peranakans are descendants of prosperous Chinese mer-chants from the 15th to 17th century, often multilingual, well educated and with their own traditions, fashion, porcelain and cui-sine. They used to be known as the King’s Chinese because of their strong allegiance to the British. It is hard to retain their identity in the modern melting pot of Singapore but some

fiercely protect their heritage and it is il-lustrated at the Rumah Kim Choo boutique gallery, where Peranakan clothing, por-celain, jewellery, food and their unique beaded shoes can be bought. Lee Kuan Yew was a Peranakan. A ride on the Singapore Flyer, the giant ferris wheel, is essential for first-time visitors to get a panoramic look at the island from 165 metres, as is a ride along the Singapore River from Clarke Quay in a bumboat in the early evening before the sun goes down for a close-up view of the Merlion statue, the symbol of Singapore, and the Marina Bay Sands resort, with its three 55-storey hotel towers and stunning roof terrace and infin-ity swimming pool 191 metres above ground level. Then, you can’t go wrong with dinner at Red House seafood restaurant for a taste of their signature chili crab. There is a lot of eating to be done in Sin-gapore and lunch in the Chatterbox Restau-

rant at the Mandarin Orchard Hotel should be on the agenda to sample its renowned chicken rice, where the chef beat celebrity chef Gordon Ramsay in a competition to produce the best dish. From the Singapore Flyer, the Gardens by the Bay stretch out below, with their huge glass domes housing more than a million plants from around the world and the Su-pertrees, vertical gardens, which also store solar energy to power various functions in the complex and collect rainwater for irriga-tion. Sound and light shows in the gardens make it worthwhile for visitors to remain into the evening. On the way out of Singapore, an early check-in at Changi Airport provides time to explore its extensive facilities and enor-mous shopping mall and a suitable finale for a visit to this very impressive island state. And then there is the flight. Singapore Airlines introduced its new A350 on the Johannesburg – Singapore route in June, with its new business class and premium economy product and will add Cape Town later this year. National airlines are flag carriers and carry the image of their countries around the world. Anyone in the airline business will acknowledge that Singapore Airlines does that as well as any. When I was in the business, we started to operate to Singapore via London, with fifth freedom rights enabling us to pick up passengers in London. But SIA’s schedule, aircraft and in-flight product was better and the stiff competition drove us off the route for a long time. I will probably have the ANC Women’s League demonstrating at the door for point-ing it out, but it is a fact that business travel-lers in particular also preferred to fly with the Singapore Girls, who were the centre-piece of the airline’s advertising campaign in those less politically correct times and was one of the most significant moves in creat-ing the carrier’s high profile and image. I’m sure it is still the case, although no-body would dare mention it today. A su-perior in-flight product, however, is still a feature of the airline, which other carriers have to bear in mind when they operate on competitive routes. A visit to the SIA cabin crew training cen-tre last month and a view of the customer service ethos drummed into the trainees helps explain the quality of the in-flight ser-vice. I have seen many of these training cen-tres and seen the type of participation by the trainees and this ranks with the best.

The Merlion, symbol of Singapore, looks towards the Marina Bay Resort complex.

In the next issue of TIR

News Digest


PS

Book your clients’ Indian Ocean Islands holidays early to avoid next year’s price hike. And secure the best deal for your customers in

TIR’s annual Forex & Insurance feature…

Hotel Carlton, LyonHotel Check

POSITIONED halfway between the tourist and corporate areas of the city, this is an ideal choice for business and leisure travellers. Metro stations and tram stops are a short walk from the front door. The hotel has plenty of charm and is part of Accor’s premium MGallery collection, billed as ‘boutique hotels with personality’. Friendly check-in staff arranged early access to the room and all 80 rooms were recently redecorated in a bright, modern style, with double-glazing keeping out any noise from the street. True for most European hotels, rooms are fairly small (18 – 40m2) but include free Wi-Fi, tea/coffee stations and flat-screen TVs. There was a generous continental breakfast and an excellent level of service.

80_Accommodation


75_Facilities

85_Location

80_Service

80_Attitude70_Food

90_Value x2

Travel agents spent the day wakeboarding and water-skiing at Beachcomber’s Paradis resort during a recent educational. Both activities are complimen-tary value-adds at each of Beachcomber’s Mauri-tian resorts. Pictured (l to r): Yvonne Strydom, Pen-travel Cresta; Kirsten John-

ston, Beachcomber; Anna Dalrymple, Travel Counsellors; Felicia Bachoo, Pentravel La Lucia; Zuriel Willemse, XL The Travel Professionals and (back) Marilyn Oelofse, Pentravel Menlyn.

Raffles would be proud...You also cannot ignore the significant effect of the culture and hospitality in the region where the crews are employed. The small details are important and one example relates to one of the worst aspects of flying long haul, where just a short time into the flight, the washrooms look like a rugby team has finished its post-game ablu-tions. But, on Singapore, they are cleaned constantly during the flight and are always pristine. Try getting a crew to do that on a Western airline.

People should obviously be expected to do their jobs satisfactorily; sometimes they do and sometimes they don’t. But when people go above and beyond, put themselves out, put in exceptional ef-fort and consideration, we are always im-pressed, partly because it is not the norm. Nowhere is this more obvious and more beneficial to a company than in the area of customer service. It results in increased cus-tomer loyalty, repeat business and word of mouth endorsement. It underlines the point that every customer is important and you never know what benefits or detractions you may get from any one of them. A recent incident involved my daughter

and her family. It was even more significant because one of the people involved, her husband, has a company which specialises in customer service training and provides it for major national and multi-national cor-porations and his staff travel extensively. I mention the family connection in the interests of transparency and declared per-sonal interest. A documentation problem caused by a misunderstanding of South Africa’s mud-dled and poorly-communicated child travel regulations resulted in them being denied boarding, when checking-in for an Emirates flight from Munich. That was one-and-a-half hours before departure time and what followed was a mad scramble in Cape Town to find docu-ments, get them copied and signed by a commissioner of oaths, scanned and emailed. They made the flight but only through the exceptional effort and con-sideration of the Emirates staff at Munich airport. During the process, they were taken to the lounge, given a glass of Champagne, the children were fed and the airline staff literally ran getting documents, boarding passes and escorting them to the aircraft. The helpful, friendly, supportive attitude smoothed a stressful situation and was, according to the family customer service

expert, extraordinary. It is one example but just shows the value of treating every cus-tomer well, every time.

Whichever candidate makes it to the White House, their supporters are so polarised that I think there is a lot of trouble brewing. Neither side is going to accept the other and it is going to make it almost impossible for the new president to be effective. Not that there has been much positive effect for the past seven-and-a-half years anyway.

And then there were our municipal elec-tions last month… The Zoomer got a boot in the posterior from the electorate in major municipalities. I heard a TV commentator say “except for East London” but surely a city which has retrogressed to before the industrial revolu-tion under ANC incompetence can’t be re-garded as major, unless we are talking about a major stuff-up. But will the Big Z fall on his spear? No, there is still booty to plunder.

PSPS

operators endorse cruise industry revie · travel industry review value-for-money international...

Documents