Business Travel Now December 09

NOW manage your travel spend better

December 2009

Just what the

doctor

ordered

Elliott ensures travel is in good health at Baroque Medical

Your

WORST

travel nightmares ■ Corporate jets still flying high in SA ■ How to implement a successful SMMP strategy ■ Which airline takes responsibility in a codeshare?

■ Mythbuster: Only taxes appear in the tax box of a domestic air ticket

CONTENTS

COVER STORY

I have a dream (I do)!

I

ENDURE a recurring dream, which becomes a nightmare, every so often if I’m feeling overwhelmed. In the dream, I have to rewrite my Matric exams irrespective of the fact that I’ve been out of school (and university) for years. The fact that I haven’t attended any classes recently or studied for these particular exams is irrelevant and the examiners feel nothing for my current commitments. Needless to say, it’s an unpleasant experience and I’m glad when I can wake up.

Not everyone can jolt themselves (hopefully quickly) out of a nightmare – particularly if it’s a real part of your day job – and in our issue this month, a few buyers reflect on some of the ‘worst nightmares’ they’ve experienced in their positions. I must admit, reading some of those scenarios, I’m relieved I’ve got my exams to fall back on.

Someone once said a vision without action is called a daydream, but action without vision is called a nightmare.

Luckily for Mandy Elliott, head of Travel & Events at Baroque Medical, whom we profile this month, she’s got vision and action, which she persistently ploughs into her career and love of strategic meetings management programmes (SMMPs) to bring her dream alive. We look at some of her successes and challenges as well as feature her key components of a successful SMMP in our How To section. What is also refreshing about her story is her fantastic experiences with and opinion of Thompsons Corporate Travel.

As is the nature of travel, things do go wrong (that nightmare theme again) and bearing this in mind, our Power Panel looks at which airline takes responsibility in a codeshare agreement – the ticketing carrier or the operating airline?

We also feature some destinations – Egypt, Nigeria and Sierra Leone – and look at whether, in the tough times of the global economic downturn, the corporate jet has remained a necessity or become a corporate symbol of excess. And, unbelievably, because it’s already the end of the year, if you’ve already started working on your diary for next year, our events calendar offers a brief overview of some of the events you may find worthwhile.

All that’s left to say for now is that whether your 2009 was a dream or nightmare year, my dream for you is that your 2010 is as exciting as it promises to be and as beneficial. Thank you all for your support during the year, we really do appreciate it.

Happy holidays, travel safely (as always) and we’ll see you back here again soon, hopefully all bright eyed and bushy tailed, as a new year makes its start. ■ Best wishes

Developing a strategic meetings management programme around group travel spend presents a huge opportunity for travel managers to add value and save money for their companies. We speak with Baroque Medical’s Mandy Elliott about her healing abilities in this regard. Cover image taken by Tijana Huysamen on location at the Melrose Arch Hotel, Johannesburg.

News

2

Power Panel

4

Destinations

6

Profile

8

• March launch for V Australia • Air France announces A380 JNB schedule • ITMSA Buyers Circle tackles SBTs

Which airline takes responsibility in a codeshare?

Cairo, Egypt

Baroque Medical’s Mandy Elliott shares her story

Destinations

10

How To

13

Mythbuster

14

Destinations

15

On the Radar

16

On the Radar

18

Deal Detective

19

Events calendar

20

Lagos, Nigeria

How to implement a successful SMMP strategy

True or false? Only taxes appear in the tax box of a domestic air ticket

Freetown, Sierra Leone

Corporate jets – are they still flying high in SA?

Your worst nightmares when managing travel KIM COCHRANE

Brought to you by Now Media, Business Travel Now is a professional travel publication aimed at South African travel procurement decision-makers in travel-buying companies.

This publication aims to reflect an unbiased perspective of the corporate travel industry offering insight and tools encouraging readers to manage their travel spend better.

Dubai, Zambia, Italy and France – we’ve got these travel specials covered and more!

A quick glance at some of 2010’s upcoming events

PUBLISHER David Marsh MANAGING EDITOR Natalia Thomson CONSULTING EDITOR Kim Cochrane CONTRIBUTORS Linda van der Pol, Max Marx, Hilka Birns, Jeanette Phillips, Liesl Venter, Natasha Tippel, Sue Lewitton DESIGN & LAYOUT Michael Rorke ADVERTISING SALES MANAGER Kate Nathan SALES REPRESENTATIVE Diana Comninos, Lisa Jacobs ADVERTISING CO-ORDINATOR Natalie Walker SUBSCRIPTIONS subs@nowmedia.co.za ANNUAL SUBSCRIPTION RSA full price R275.00, RSA annual debit order R220.00, Foreign on application PRINTED BY Juka Printing (Pty) Ltd PUBLISHED BY Lugan Investments (Pty) Ltd trading as Now Media Now Media Centre, 32 Fricker Rd, Illovo Boulevard, Illovo, Johannesburg, PO Box 55251, Northlands, 2116, South Africa.

Tel: +27 11 327 4062, Fax: +27 11 327 4094, e-mail: btn@nowmedia.co.za, web: www.btnow.co.za

DECEMBER 2009 • BUSINESS TRAVEL NOW

1

NEWS

March launch for V Australia

By Natalia Thomson

V

AUSTRALIA has announced a launch date of March 13, 2010, for its Johannesburg-Melbourne flights.

The airline’s Gordon Young, manager offline sales and interline, told BTN the three-class (economy, premium economy and business) service, operated by a B777-300ER, would run on Tuesdays and Saturdays.

“The flights will depart Johannesburg at 19h30 on Saturdays and Tuesdays and arrive in Melbourne at 18h00 next day. The return flight from Melbourne will depart at 11h15, arriving in Johannesburg at 17h30.”

Young says the choice of Melbourne as the Australian destination is due to the city’s large mining interests, as well as it being the second-largest city in Australia. According to

Young, “very competitive” fares for the route have already been launched.

Leveraging off Virgin Blue’s extensive domestic network, passengers using the V Australia service will be able to connect easily to New Zealand, Tasmania and certain South Pacific destinations. “Passengers can also take advantage of the Virgin Blue Airpass, as well as the lounge in Melbourne where they can buy individual entrance for A$35 (R244).

A familiar face also returns to the travel sector with Isabel Hancock, former gm Swiss International Air Lines, joining the airline as its regional commercial manager Southern Africa. Hancock and her team will be based at the Virgin Atlantic offices in Hyde Park, Johannesburg.

About V Australia • Economy class (81cm pitch); premium economy class (97cm pitch) and business class (lie-flat 1,95m bed).

• V Australia offers non-stop flights between LA and Sydney, as well as LA and Brisbane.

• Domestic and regional connections available through Virgin Blue, Pacific Blue and Polynesian Blue.

• Premium economy passengers have access to a stand-up bar, as do business-class passengers.

AF announces A380 JNB schedule AIR France has released its schedule for its A380 flights to SA in 2010.

From February 3 to March 28, the thrice-weekly AF995 service departs Johannesburg at 20h30, scheduled to go daily from March 29 and departing at 19h40.

The return flight from Paris Charles de Gaulle, AF990, departs at 10h55 from February to March, and at 09h45 from March 29.

2

Air France commercial director Southern Africa and Angola, Ralf Karsenbarg, confirms that the airline’s two B777 services will merge into this one A380 service and that there will be no impact on airfares.

Johannesburg is the second route on which the A380 will be used in Air France’s network, with Paris CDG to New York JFK A380 services having started recently.

DECEMBER 2009 • BUSINESS TRAVEL NOW

The new A380, which has an equivalent capacity to that of a B777-200 and an A340-300 combined, will carry 538 passengers. A three-class service will be offered including nine first-class seats on the main deck; 80 business-class seats on the upper deck and 449 economy-class seats spread over the two decks.

Air France is the first carrier to introduce an A380 on the JNB route.

NEWS

ITMSA Buyers Circle tackles SBTs – to implement or not to implement?

By Natasha Tippel

T

HE ITMSA recently hosted a Buyers Circle discussion on self-booking tools (SBTs) in Johannesburg for corporates thinking about implementing a solution and for those who already had.

The morning’s discussions opened with a presentation by Accenture South Africa’s travel manager, Jacqui Abrahams, on Accenture’s experience in implementing a SBT, including the benefits and challenges faced by the company.

The main benefits, said Abrahams, had been the achievement of operational effectiveness by self-enabling personnel, the cost-saving opportunities and enhanced traveller convenience. A lesson learnt, said Abrahams, was that partnering, collaboration and effort

were needed from all sides. “Communication is key to long-term success. If communication is down, adoption rate will be down too.”

After the case study, group discussions were held, exploring where SBTs now stood in SA. Topics included policy adherence, special techniques to increase adoption, managing fulfillment etc.

Feedback from the group discussions reiterated that the importance of increased adoption rates was vital to the success of implementing and sustaining the use of SBTs. To achieve this, it was suggested that companies ensure SBTs were managed and controlled by the travel office and that rebellious travellers should be named and shamed.

Concerns were also expressed as to whether or not SBTs negated the use of TMCs; the consensus being that there would always be a need for TMC services, but that the role of the agency needed to evolve to that of a strategic partner. “SBTs are changing the perception that TMCs ‘own’ the client and that suppliers can’t get in with clients unless they’re ‘in’ with the TMC,” said one corporate.

Overall, it was agreed that whether or not a company chose to implement a SBT depended on whether the tool would fit the organisation’s business model. “It’s not a case of one size fits all,” said another corporate. “Different companies have different environments and needs. It’s not a simple, clear-cut decision.”

New U-bag Cape Town baggage drop-off point opens A new U-bag drop-off point at Cape Town International Airport is available to travellers with excess baggage.

The U-bag airport counter has closed. Travellers will now drop off their luggage at the Aireps Cape Town branch located at the Cargo Centre, about 500m away from the main airport. Aireps, the GSA for Malaysia Airlines Cargo in SA, has been newly appointed as the local handling agent and will assist clients by receiving and forwarding unaccompanied baggage on behalf

of U-bag Cape Town. “The new drop-off point, which we’ve positioned as a cost-saving option for our clients, will be beneficial to travellers, as the Cargo Centre has ample parking as opposed to the very congested airport and is literally a two-minute drive away,” says Michele van Rensburg, gm of Business Development.

“Calls, quotes and enquires from Cape Town will continue to be handled by our centralised customer service team at our Johannesburg hub.”

DECEMBER 2009 • BUSINESS TRAVEL NOW

3

POWER PANEL

Who takes responsibility in a codeshare?

BTN’s Max Marx asked a panel of experts their opinion on which airline takes responsibility when something goes wrong on a codeshare flight – the ticketing (marketing) carrier or the operating airline?

Allan Moore, ceo, Board of Airline Representatives of South Africa

C

ODESHARE flights are used by most airlines to extend their networks into regions where they do not, choose not to, or cannot operate their own flight services.

“The primary objective is to display as many destinations in the world in the GDS or website schedules as possible without flying to them, says Jim Weighell, Sure Travel’s corporate manager.

While travel agents generally handle the reservations process and flight changes, once customers are at the airport and need to talk directly to the airline, they can sometimes experience difficulties, says Laurie Wilkinson, owner of Sure Travel Studio.

What is a codeshare agreement?

A: “Codeshare is when an airline sells seats under its name and flight number on a flight operated as a scheduled flight by another airline. By agreement one airline will allocate a number of its seats to another airline who will sell those seats as if it was their aircraft.” – Allan Moore

How do I know whether the operating airline is of the same standard as the ticketing airline?

A: “Alliances have strict entry requirements that deal with this.

Outside alliances, partnerships rely on the savvy of the dominant partner with the better product.

Sometimes it’s necessary for airlines to partner with carriers that are not on a par and the aim is to encourage the weaker partner to perform better.” – Allan Moore A: “Normally alliance member airlines offer uniformly high standards, but there will always be variations, particularly in the area of service delivery.” – Jim Weighell 4

Jim Weighell, corporate manager, Sure Travel

Who do I contact if I need to complain about a service issue?

A: “Normally the ticketing airline, but at the airport, the operating airline, if the ticketing airline is not available.” – Allan Moore A: “At the airport you contact the operating airline. Before or after the trip you contact the ticketing airline.” – Jim Weighell A: “The airline you pay is the airline responsible even if delivery is by another carrier, especially for payment issues or booking changes.” – Janet Aldworth A: “The operating carrier ends up taking most of the responsibility, especially for issues at the airport.

The ticketing carrier may not have a representative at the airport at the time the operating carrier is scheduled to depart.” – Laurie Wilkinson

Janet Aldworth, md Sure Voyager Travel

Who changes my connecting flight in the event of a delay?

A: “It depends on which airline is available. One would normally deal with whomever ‘owns’ the ticketed flight number, but if not available, then the operating carrier.” – Allan Moore A: “The operating carrier.” – Jim Weighell A: “The operating carrier.” – Janet Aldworth A: “The selling carrier is contractually responsible, but in reality the operating carrier handles the reroute.” – Laurie Wilkinson

Who is responsible if I’m denied boarding from a codeshare flight as a result of oversales?

If a corporate has a contract with one airline, which codeshares with another, does that corporate automatically get the contract price on the codeshare airline?

A: “Denied boarding payment is for the ticketed airline. The physical rebooking depends on whether or not the ticketed airline is available or not at the airport at the time of departure.” – Allan Moore A: “The operating airline will be required to re-accommodate you. The ticketing airline will handle complaints. Compensation payment may come from either the ticketing or operating airline depending upon how the codeshare agreement is structured.” – Jim Weighell A: “The operating airline.

Compensation, especially in Europe, has to be paid to passengers right away.” – Janet Aldworth A: “The selling carrier contractually responsible, but in reality the operating carrier handles the reroute.” – Laurie Wilkinson

A: “The flight will be operated as if it were the ticketed carrier’s own flight. Any contract should allow for pricing across codeshare flights. If they book under the ticketing carrier’s flight number and not the operating or another alliance partner’s flight number, then the contract should be valid. Some airlines may exclude a series of flight numbers from their agreement. Each airline has its own rules and system of revenue management. Each airline is allocated for sale any number of seats on the plane. It is up to the ticketing carrier to pay or give compensation in kind for the seats used to the operating carrier. The value of the seats to the nonoperating carrier is normally high and at times the carrier may have no option other than to exclude these flights from a contract in an attempt to fairly cover the cost of the seat.” – Allan Moore

DECEMBER 2009 • BUSINESS TRAVEL NOW

Laurie Wilkinson, owner, Sure Travel Studio

“Any contract should allow for pricing across codeshare flights. If they book under the ticketing carrier’s flight number and not the operating or another alliance partner’s flight number, then the contract should be valid.”

– Allan Moore

A: “Carefully check the terms and conditions of the agreement for exclusions such as codeshare services. Often the format of the agreement between the airlines makes some fares sub-economic on specific routes or airlines and they are occasionally excluded for use. All codeshare agreements are not alike. There are circumstances where highly discounted corporate fares are not viable for codeshare use. It is an industry norm on that basis, but codeshares do not always exclude corporate fares.” – Jim Weighell A: “If the ticketing carrier has a corporate agreement with the company, the passenger will get the corporate fare. But if the passenger is ticketed on the codeshare partner where there is no corporate agreement in place, then the corporate fare will not apply.” – Janet Aldworth A: “It varies by contract. Typically codeshare flights are excluded from corporate contracts.” – Laurie Wilkinson

At which airline’s counter should a passenger check-in for a codeshare flight?

A: “If the ticketing carrier has a check-in facility, then you’d go to that counter. If it doesn’t then you’d go to the operating carrier counter.” – Janet Aldworth

To change my itinerary or seat, which carrier do I contact?

A: “You contact the ticketing carrier because the airline rules will still apply even if they are not the operating carrier. Seats are subject to the same rules and pricing that would apply if it were their metal.” – Allan Moore A: “Prior to the trip, contact the ticketing carrier. During the trip, you may need to contact either carrier depending on whether the codeshare airline is represented in the country you’re currently in. Best advice: Get your TMC back home to handle it.” – Jim Weighell A: “The ticketing carrier unless they’re unavailable.” – Janet Aldworth A: “Ticketing carrier.” – Laurie Wilkinson

Which carrier is responsible for lost baggage or damaged baggage claims?

A: “Theoretically it is the ticketed carrier who pursues issues and searches for lost bags/claims with the operating carrier. Practically, however, it is the operating carrier who will have staff available.” – Allan Moore A: “Usually the operating carrier.” – Jim Weighell A: “The operating carrier.” – Janet Aldworth A: “The operating carrier.” – Laurie Wilkinson

Are the prices sold by two codeshare partners the same for the same flight?

A: “Not necessarily. Their

revenues are managed differently.” – Allan Moore A: “Generally airlines try to align their prices, but variations can occur.” – Jim Weighell A: “No, not necessarily. Because of anti-competitive issues, two carriers should not have the same fares.” – Janet Aldworth A: “No.” – Laurie Wilkinson

Do codeshares impact compliance?

A: “Where codeshare flights preclude the use of corporate fares, the travel policy should indicate that trips should be restricted to the operating carrier only.” – Jim Weighell A: “Yes, global corporates often have stringent service level agreements and carryover from one airline to the other may not be seamless. A corporate agreement may only allow a passenger to fly on Lufthansa for example, or a particular class, but if Lufthansa does not fly on a particular route, then the codeshare fare won’t give them the benefit.” – Janet Aldworth

What issues do corporates have when it comes to codeshares?

A: “It takes longer to get frequent flyer miles credited when you come off a codeshare flight. Access to the Passenger Name Record (PNR) can sometimes be problematic because the codeshare partner may be a small airline that can’t find the passenger on their inventory.” – Janet Aldworth A: “Fare recalculations can be complex if the operating carrier staff are not aware of corporate fare agreements, and where the fare is not common to both airlines.” – Jim Weighell A: “The facility for customers to choose the seat of their choice is not always available or efficient on a codeshare flight. Quite often a passenger books their seat, but then doesn’t get it.” – Laurie Wilkinson ■

In our Power Panel next month we pose the question: Do travel managers help or hinder you?

DECEMBER 2009 • BUSINESS TRAVEL NOW

5

DESTINATIONS

Cairo, Egypt Business travel between Egypt and South Africa is on the increase as a result of the massive growth in trade between the two countries. Max Marx recently visited the country.

T

RADE between Egypt and SA increased by more than 350% in 2008 compared with 2007, says Hany Ezzat Bassiuny, commercial counsellor, head of the Commercial Section at the Embassy of Arab Republic of Egypt in Pretoria.

Exports from SA to Egypt from January to November 2008 were US$131,9m compared with just $48,8m in the same period in 2007. Egypt exports to SA increased from $27,8m in 2007 to $149,3m in 2008.

Bassiuny says there has been an increase in car and

car component exports from SA as well as exports of tobacco, industrial machinery and chemicals. In turn, Egypt is exporting marble, granite, petro-chemicals and car components to SA. “This is the first time in the trade history between Egypt and SA that the trade value has reached $281,2m and we expect further increases going forward.”

Bassiuny says South African business travellers mostly visit Cairo and its industrial satellite cities such as October 6 and 10 Ramadan.

Cairo International welcomes new international terminal Cairo International Airport’s new Terminal Building 3 (TB3) recently opened. Wael Kadry, EgyptAir’s regional manager, says the opening is a tremendous boost to Cairo’s capacity to increase passenger movements in coming years.

The terminal is home to EgyptAir and its Star Alliance partners and is in keeping with Star Alliance’s Move Under One Roof concept developed to

improve the transit experience for alliance passengers by minimising transit time, facilitating baggage transfer and allowing easy access to Star Alliance-branded amenities such as lounges and check-in kiosks.

The new terminal is capable of handling 11m passengers annually and can accommodate the new double-decker A380 Airbus.

Facts&

• Currency: Egyptian pounds (LE) • Women should dress conservatively when walking in the streets.

• Tipping is a way of life in Egypt – one tips everybody including the toilet attendants. It’s therefore advisable to carry small denominations of Egyptian pounds. It’s also advisable to bring small denominations of US$ rather than large bills.

While most four- and five-star hotels offer wireless internet, it is charged for.

Phone calls are charged for after 30 seconds no matter if no one answers.

Bottled water must be used to brush one’s teeth and drink.

The Egypt visa is free and takes two days to get.

ast

travel tips

• • • •

Accommodation options Recommended in Cairo: • The 855-room Ramses Hilton with spectacular Nile views, large suites, extensive conference facilities and excellent buffet breakfast.

• The four-star deluxe 300-room The Oasis Hotel near the Giza Pyramids is set amid green lawns and palm trees. It offers meeting facilities, a spa, gymnasium and a selection of restaurants.

• Super impressive is the five-star deluxe 1 250-room Marriott Hotel & Omar Khayyam Casino, a former palace that recently underwent a major transformation. Decorated in grand Egyptian style complete with beautiful antiques and majestic interiors, the hotel offers 14 meeting rooms, a secluded swimming pool, floodlit tennis courts, a gymnasium and 14 exclusive restaurants.

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DECEMBER 2009 • BUSINESS TRAVEL NOW

A felucca ride on the Nile at Aswan is a relaxing way to spend an afternoon.

Getting around Traffic in Cairo is nightmarish and the traffic jams legendary. Taking a metered taxi or hiring a chauffeurdrive car are the best options. One

must leave ample time to get to meetings that may only be a few blocks away. In cities like Aswan and Luxor, self-drive is an option.

Getting there • EgyptAir flies daily to Cairo departing Johannesburg at 21h45 and arriving in Cairo at 05h45. It departs Cairo at 00h50 arriving in Johannesburg at 08h50. The airline codeshares with SAA on the route.

Meanwhile, EgyptAir has reduced its flights to Milan to three times a week.

• Kenya Airways offers three flights a day between Johannesburg

and Nairobi, except on Wednesdays when it offers two daily frequencies. The carrier offers daily flights to Cairo, with seamless connections from Johannesburg.

• Among the other airlines that fly to Egypt are Air France, Turkish Airlines, Lufthansa, Swiss International Air Lines, Qatar Airways, El Al Israel Airlines, Iberia Airlines and Emirates.

Conventions The Cairo International Conference Centre has 32 rooms, the largest catering for 6 000 delegates.

Ideas for incentives • In Cairo, one can enjoy a dinner cruise on the Nile, visit the Pyramids and Sphinx and the Egyptian Museum.

• In Aswan, a visit to Essence of Life Al Fayed, manufacturers of oriental perfumes, flower oils and blends, is a fascinating experience. At the Aswan market, one can interact with the locals. One can also enjoy a Felucca ride on the Nile.

• Taking a Nile cruise from Aswan to Luxor is a relaxing way to explore the temples of Ancient Egypt. The cruises stop at Kom Ombo, Edfu and Esna. At Edfu one can take a horse-drawn carriage to Horus Temple.

• In Luxor, one can visit the famous Valley of the Kings with its 63 tombs and Tutankhamun’s mummy as well as Luxor and Karnak Temples. A

•

•

•

•

hot-air balloon ride over the Valley of the Kings is another option.

At Sharm El Sheikh, one can enjoy a sunset camel ride, take tea with a Bedouin family, enjoy snorkelling, scuba diving, a dune dinner and swimming in the Red Sea. Fishing, golf, trekking and 4x4 safaris can also be included in incentives.

In Alexandria, must-sees are the Fort and Citadel of Qait Bay, Pompey’s Pillar, and the Catacombs of Kom el-Shukafa.

For those seeking adventure, climbing the 3 750 Stairs of Repentance to the top of Mt Sinai is a challenge.

The Red Sea is famous for its exceptional scuba diving locations and diving cruises can be arranged. ■

It’s time for Meetings Africa

S

OUTH African Tourism has reminded companies in the business tourism industry including conference venues, incentive travel houses and destination marketing organisations to register and to reserve their exhibition space at Meetings Africa 2010 as soon as possible. The event will be held for the sixth consecutive year, from February 24-26, at the Sandton Convention Centre.

About 3 000 visitors are expected to attend, including local corporate buyers and international hosted buyers.

Nomasonto Ndlovu, global manager: Business Tourism at South African Tourism, says next year’s event has particular strategic importance, as SA’s international exposure increases ahead of the 2010 FIFA World Cup. “The exhibition will run concurrently with a meeting of the Tourism Ministers of the G20 countries under the theme ‘Travel and Tourism: stimuli for G20 economies’, as well as the UN World Tourism Organization/South Africa International Summit on Tourism, Sport and Mega-events under the theme ‘Winning Together’.”

South African Tourism will also have a special focus on the association meetings market. To this end, February 23 will mark the inaugural association day workshop, aimed at the local associations market.

For more events next year, turn to page 20.

Queensgate to launch conferencing hotel Queensgate Hotels & Leisure is launching a fourstar conferencing hotel, Upper East Side, which will be situated at the base of Table Mountain in Woodstock, Cape Town. The Queensgate site is being transformed into a 176-room hotel, complete with eight conferencing rooms. It will also feature 15 club suites with separate concierge services, a ladies-only floor designed by women for women (pictured), an interactive food quarter, retail facilities, and a new spa called Q-Spa. Upper East Side is being built in adherence with set environmental performance standards.

Work on the hotel has already begun and it is set to open in April 2010.

Big smiles for New Option winners Liane Hocking from Festo was chosen as the lucky winner of the New Option competition in BTN’s July issue. The prize includes a two-night stay at the newly renovated Formula 1 Hotel OR Tambo. Pictured here is Hocking holding her gift certificate with the Formula 1 Hotel group md Zahra Peera (far right) and operational manager Madelein Geier (left). Far left is Natasha Tippel from BTN. Menzi Mdlopane, project manager at Rand Water (right), was chosen as the lucky winner of the New Option competition in BTN’s August issue. Mdlopane’s suggestion to name one of the new conference rooms at the InterContinental Johannesburg O.R. Tambo Airport, Savuti, won him a weekend overnight stay for two at the hotel. Pictured here with him is gm Pierre Delfau.

DECEMBER 2009 • BUSINESS TRAVEL NOW

7

PROFILE

Just what the doctor ordered!

Developing a strategic meetings management programme around group travel spend presents a huge opportunity for travel managers to add value and save money for their companies.

Kim Cochrane speaks with Mandy Elliott about her knowledge and experience in this regard. and agreements while updating policies and procedures. Initially the role was Travel & Events coordinator, namely to sort out monthly workshops with doctors and daily corporate needs, but the role has snowballed. I’m back to full events management and travel bookings.”

Tijana Huysamen

Key learning point

Prickly issues – such as commissions and nett rates – give Mandy Elliott a big thrill during supplier negotiations.

T

HE bug bit when Mandy Elliott, working at Pfizer SA, was tasked with researching and implementing a strategic meetings management programme (SMMP) for the company during 2005/6.

Now, as head of Travel & Events at Baroque Medical, a supplier of medical devices and pharmaceutical products, she is in a privileged position where she can strategically and operationally manage general corporate travel as well as meetings, incentives, conferences and events (MICE).

“Very few travel managers and corporate events managers in SA cross over the ‘great divide’ between the two commodities, which are closely related and should be managed by the same person or team to maximise the potential benefits.”

Her initiation into the travel and events industry at Pfizer SA was a turning point in her career and the learning curve was exponential.

“I was an event manager and moved to the procurement department to manage the travel portfolio as well as to implement the SMMP. And that’s where it all began. In 2006, Pfizer was the first company in SA, we believe, to implement an SMMP, with related

8

policies and procedures, and we reported a R1 million saving on a R15 million MICE spend in the first year of implementation.

Even though it was a New York initiative, Pfizer SA was the first company across the group globally to physically launch the SMMP. It was so exciting and the benefits of this experience in my roles since Pfizer have been numerous.”

Back in the hot seat Elliott left Pfizer SA in April 2006 to take a year off to be with her daughter Abigail. “The hours my portfolio at Pfizer required BC (Before Children) were difficult to match with motherhood. A year later, when it was time to get back on the proverbial horse, I investigated consulting on SMMPs to large corporations, creating policies and procedures suitable for individual business needs. Looking at the career opportunities available for someone with my experience in Europe, for example, where this sector was much more advanced, I personally thought this was a fantastic idea, especially bearing in mind the savings that could be generated. Unfortunately, South African corporates weren’t yet ready to embrace the savings,

DECEMBER 2009 • BUSINESS TRAVEL NOW

the opportunity to manage this unchartered commodity, or to allocate budgets to it. The general feeling was that ‘I’m a travel manager and I don’t have time for this!’. This year, however, it’s been great to see a renewed interest in the benefits of managing MICE in organisations and I’m excited to be back in the hot seat talking about this area of experience again.”

As a pioneer in SA, Elliott recently gave presentations at the annual conferences for the Southern African Association for the Conference Industry (SAACI) and Institute of Travel and Meetings Southern Africa (ITMSA) on this topic (see page 13 for her steps towards creating a successful SMMP).

Interestingly, earlier this year, the ITMSA rebranded its organisation to incorporate the meetings aspect more formally; it was previously the Institute of Travel Management Southern Africa.

When Elliott arrived at Baroque Medical in April 2008, she believed that since travel was parked on the back burner, it wasn’t a well-managed commodity of the business. “I reviewed, updated and negotiated all of the company’s contracts

A key learning point that stands out clearly in her mind is when she was interviewed for her current position at Baroque Medical, where she remembers being told that Thompsons Corporate Travel was used as the preferred travel service provider.

“From my industry background, I honestly hadn’t heard of any of my peers using Thompsons Corporate and my first thought was ‘Hmmm I’ll change that... it can’t be right!’ Now, 18 months later, I can honestly say the service Baroque Medical receives from Thompsons is unequivocal – it’s a very rare experience, of that I’m very much aware, of having the level of service that I get from them. We’ve got a superb consultant dedicated to our business – I feel the pain when she’s not there – and it’s due to Thompsons’ efficient services that my service to my business runs so well. I’ve had calls from other travel management companies wanting to tender for the Baroque Medical business. They can offer me half the transaction fee for my business and I won’t change! My lesson... don’t knock something until you’ve tried it!”

She says travel partners and contracts are negotiated and updated annually. “At this stage, we’ve chosen not to incorporate a self-booking tool (SBT) for two reasons. The first being that we’re waiting for the ‘SBT adoption rush’ to subside rather than being involved in troubleshooting new solutions – I don’t want to be the person doing the ironing out of problems, I just want to do the adopting – and secondly, we did a costing analysis earlier in the year and the potential savings that would be generated through a reduced transaction fee weren’t substantial enough to warrant an adoption, at that stage.”

Baroque Medical’s travel spend is about R3 million per annum, including MICE spend.

“Our travel portfolio comprises

PROFILE

COSTS FROM TICKET CHANGES REDUCED BY ABOUT 90% If travellers have not planned properly and would like to catch a flight earlier than the one initially booked, they can make the change to their tickets at the airport, but at their own cost, advises Elliott.

mainly domestic travel for colleagues travelling to the main centres (Cape Town, Durban, Bloemfontein) and then overseas travel where the objective is primarily geared towards international congress attendance in the main European hubs.”

“It works so well for both parties in this business partnership because Mandy is professional and knows her business and we know through a personal relationship what we need to do to make her travellers experience painless travel!” – Mary Shilleto, Thompsons Corporate Travel Married to a fireman, Robert, Elliott is no stranger to putting out fires and the company’s main challenges – perhaps not too unique in the medical devices and/or pharmaceutical industries – relate to its clients and the challenges they pose to the company sponsoring their travel and/or event attendance.

“Regular requests are received from clients to use their airline of choice for no other reason than personal gain from the loyalty programmes to which they subscribe. This issue alone needs constant management and feedback. Our clients are medical professionals, most of whom are in private practice, which poses its own problems for medical emergencies that crop up at the last minute and the said traveller is perhaps no longer able to travel, resulting in an adjusted itinerary.”

In terms of the economic downturn and its impact on Baroque Medical, Elliott says at this stage, the business is still doing very well. “We’re a medical device company that assists people with artery blockages and a number of other issues. Unfortunately in times of stress, people’s illnesses increase, so tough times in the economy can be a good thing for a company like ours!”

Nevertheless, measures have still been taken to ensure cost-effective travel. “Everyone flies in economy class, but we are prepared to issue

The medium of meetings ... Mandy Elliott is in her element. upgradeable tickets on international trips for clients to utilise their own loyalty programme memberships for upgrades at their request. Our senior management made the decision not to fly low-cost carriers so for domestic travel, the best fare on the day rule applies between SAA and BA. We’ve also identified two hotel properties in each city centre for our domestic travel. B&Bs are not currently on our preferred suppliers list, but can be booked at the traveller’s discretion.

I’ve recommended the use of videoconferencing for certain meeting types and this is being used where possible, but our business is about face-to-face relationships and in most cases, such as when practical sessions with medical devices are required, video- or teleconferencing would not be an appropriate method of doing business.”

Luckily, she says, Baroque Medical generally has well-trained travellers who plan their trips in advance where possible and book their domestic flights about three weeks prior to departure to take advantage of reasonable airfares, with some restrictions on cancellations and changes.

“Last year, we identified ticket changes on return journeys as an area of unnecessary spend and in turn adjusted the policy. If travellers have not planned properly and would like to catch a flight earlier than the one initially booked, they can make the change to their tickets at the airport, but at their own cost. This significantly reduced, by about 90%, the costs we incurred through ticket changes based on previous figures year on year.”

Elliott gets a big thrill out of ‘educating’ venues on the payment of commissions and negotiating the real meaning of nett rates.

“When having a meeting offsite, I’m generally

able to make a saving of between 5%-10% on the initial quote, just on rate negotiations.”

In terms of her objectives for 2010, her main task is to get travellers to adhere to a suggested and recommended travel ban over the World Cup period. “I’m also working on implementing a formal Duty of Care policy and convincing the organisation to ‘Go Greener’ with an analysis of our carbon footprint and the implementation of counter measures and reduction opportunities.”

In conclusion, she hopes more procurement professionals will motivate, or embrace, the opportunities available to them through an SMMP. “Currently you could be spending R300 000 with a hotel group on corporate travel bookings. If you re-route all your event spend to that vendor as well, you could be spending R3m with them the following year. This makes you a very different client – in a completely different ball park – and everything becomes negotiable.”

Somehow, procurement professionals need to be more open-minded to comprehend the possibilities and embrace the opportunities, she advises. “It could take you on a different route.”

Preferred partners • TMC – Thompsons Corporate Travel.

Air – British Airways. Accommodation – Legacy Hotels & Resorts, The Quatermain Premier Boutique Hotel and Falstaff Inn, Hotel Express International. Car & transfers – First Car Rental and Tango Tours.

A prescription for healthier meetings management • To travel and procurement managers: Investigate your organisation’s spend on meetings management and ensure the events service providers (internal and external) are informed, educated and incorporated into the travel procurement strategy. Immediate achievable savings for taking control of company meetings can range from a minimum of 5% up to 30%.

• Benchmark the costs of your organisation with those of other similar-sized companies.

• Adopt the best practice in the use of technology tools and service levels from your commodity partners. ■

BTN0932SD

DECEMBER 2009 • BUSINESS TRAVEL NOW

9

The blur of a bank on every corner sprinkled with a cacophony of hooters is what you can expect from a drive through Lagos, reports Natalia Thomson.

Y

OU need nerves of steel to zip through Lagos traffic, and yes, even if you’re a passenger.

Nigeria’s economic and financial capital is ruled by some of the worst traffic you’re ever likely to see. It’s so bad that everything from the number of appointments you can have in one day to where you eat lunch will be influenced by it.

Lagos is the epitome of a bustling metropolis with over eight million inhabitants and a large expat community. The city is located in south-western Nigeria on the Atlantic coast in the Gulf of Guinea and is perched on several islands linked by bridges, the two largest of which are Lagos Island and Victoria Island.

South Africans expecting the worst will be pleasantly surprised at the infrastructure, depending on how long they stay and where they go. The roads may be congested, but there’s a bank on every corner (literally), good restaurants, great nightlife and over six mobile phone network providers.

The large number of expat residents has influenced the level of facilities and services available to corporate travellers. There’s even a shopping mall or two containing some familiar South African brand names like Shoprite and Game, and visitors will be hard pressed not to bump into a South African voice or two in hotels throughout the city.

Lagos’s nightlife is renowned and there are several clubs throughout the city, but those most frequented by foreigners are located on Victoria Island (known by locals as VI). And the city’s sandy beaches, like Bar Beach on VI or Lekki Beach, are quite beautiful.

It’s not really a leisure destination for South Africans although there are a few sights like the National Museum on Lagos Island, the central mosque and Oba Palace, which are worth a visit. But the real business hub is arguably on Victoria Island where the real estate prices are some of the most expensive in Africa and this is the site of Sun International’s Federal Palace Hotel.

10 DECEMBER 2009 • BUSINESS TRAVEL NOW

South Africans should not be tempted to drive themselves around Lagos. Rely on a local driver to get around the city and give yourself ample time between appointments to ensure your meeting can in fact take place.

Also south of Lagos Island is Lekki Island, home to a conservation centre, which is conspicuous by its absence of wildlife. Ikoyi Island to the east is home to several hotels and one of Africa’s largest golf courses. The area of Ikeja is where the city’s Murtala Muhammed International Airport is located.

Urgent visa applications thwarted

Travellers’ tips • Rely on a local driver to get around the city. Give ample time between appointments. Ensure the traveller has the local driver’s name and contact number and calls them upon arrival.

• Nigeria is a cash-based society. Warn your travellers not to be surprised to see people with wads of cash in hand to pay for a dinner bill. The currency is naira, but hotels accept credit cards and US dollars.

• Travelling between the international and domestic terminals of Murtala Muhammed International Airport can take hours if the traffic is bad. If leaving VI to get to the airport, leave before 16h00 as the traffic leaving the island can be very congested.

• Restaurants on offer include Jades Palace, Churrascos, Fusion, Chocolat Royale (great lunches and cocktails), Bottles (Mexican food and a favourite with South Africans) on VI. Lekki and Ikeja also offer some good restaurants.

• Hotels suiting the requirements of South Africans include the Protea Hotel Victoria Island, the Federal Palace, the Oriental Hotel in Lekki and the Eko

Stock Xchnge

DESTINATIONS

Lagos – a vibe of its own

Suites (although this hotel is in need of a revamp). The Protea Hotel in Lekki and the Protea Hotel Ikeja near the airport are other options.

• When getting a taxi from the hotel, don’t pay more than 5 000 naira for the first three hours, and 1 000 naira for every hour thereafter. Negotiate, it’s expected.

• Getting there: Arik Air and South African Airways offer direct flights to Lagos from Johannesburg. For an alternative connection, Ethiopian Airlines flies daily to Addis Ababa from Johannesburg and offers daily flights from Addis Ababa to Lagos in the mornings. Travellers will have to overnight in Ethiopia: ET 808 departs JNB at 14h05 to arrive in ADD at 20h40; ET 901 departs ADD at 09h00 to arrive in LOS at 12h15.

• Visas: South Africans require a visa to travel to Nigeria.

The visas can be obtained and paid for online www.immigration.gov.ng. Passengers will require a yellow fever certificate upon returning to SA.

SOUTH Africans travelling to Nigeria will have to plan ahead, as new changes to the Nigerian visa application process thwart the issuing of urgent visas.

The changes apply only to the Pretoriabased Nigerian Embassy and no changes have been made to the application process at the Consulate General of Nigeria in Johannesburg, which currently uses an online application process.

Although the online application and payment system in place at the Consulate General of Nigeria in Johannesburg has been in place for some time, agents and visa companies have been making use of the Pretoria-based Nigerian Embassy for urgent applications.

Dale Weldhagen, Mass Visas managing member, told BTN one of the main reasons the Pretoria office was being used to issue visas was because they were willing to issue an urgent visa (at an additional fee of R500). “Urgent visas are imperative to our business as we have a large number of corporate clients that need to travel to Nigeria at very short notice.

"As Johannesburg only accepts applications on a Tuesday and Thursday, and do not offer an urgent issue service, we used Pretoria exclusively as we were able to obtain a visa in 24 hours any day of the week.” >

DESTINATIONS

South Africans expecting the worst will be pleasantly surprised at the infrastructure. The roads may be congested, but there’s a bank on every corner (literally), good restaurants, great nightlife and over six mobile phone network providers.

* Continued from pg 10

The Pretoria-based office, she says, also still accepted payment of the visa fee in cash, whereas Johannesburg requires applicants to pay online using a credit card.

“Most clients do not feel comfortable inserting credit card details on a website. And the payment online is also very often delayed and can take anything from one to 14

days to reflect on Google Checkout before clients can apply for the visa.”

Says Dale: “Unfortunately the new changes at the Pretoria-based embassy are going to impact hugely on our turnaround times and we will not be able to guarantee that any of our passengers will be able to meet their proposed travel date due to visa issues”.

Visa application changes (Pretoria-based embassy only) • Submission of visa application will only be once in two weeks on Mondays only • Processing of visas takes two weeks (14 days) • Visa fee is non refundable • First-time visitors to Nigeria will pay a repatriation fee of R6 000 (refundable) • No exceptions will be made • No urgent visas will be issued

12 DECEMBER 2009 • BUSINESS TRAVEL NOW

New developments in brief ■ Soon after opening its Federal Palace property on Victoria Island, Sun International has announced it will be refurbishing the adjacent Towers Hotel.

Known as the ‘Giant of the West Coast’, the landmark Towers Hotel, says Sun International regional gm David Kliegl, will be gutted and revamped to include 320 rooms. The hotel is connected directly to Federal Palace and the guests of either hotel will benefit from the facilities of both. Also on the cards is the addition of a casino development to the existing Federal Palace property, a conference marquee, swimming pool and revamped gardens overlooking the bay. Federal Palace’s conferencing marquee, says Kliegl, is being imported from SA and will host some 500 people banqueting style. “Conferencing and business facilities are very important.

Strategically delegates have to stay on site because of the traffic. In Lagos, travellers base themselves at the hotel and set all their appointments for

the day in the hotel. We offer eight 10-seater boardrooms with business facilities.”

■ REZIDOR is building three new hotels in Nigeria, with its Radisson Blu Hotel expected to open mid-2010 on Lagos’s Victoria Island. The 250-room Radisson Blu will include two restaurants, meeting facilities and leisure areas, including a spa and pool. Located in the waterfront area of Victoria Island, the Radisson Blu will be close to the Mega Plaza shopping mall, as well as the commercial district, consulates and banking district. Guests will have free access to the fitness area in the basement level, including gym equipment and two saunas. The hotel restaurant seats 80 and overlooks the lagoon. It is connected to a terrace which can be used for small functions. Wireless internet access, a business executive lounge, four meeting rooms and two boardrooms are also available. ■

HOW TO

How to implement a successful SMMP strategy Corporate strategic meetings management will be – and should be – an increasing area of focus for travel procurement professionals going forward, writes Kim Cochrane.

T

HE recent American Express Global Business Travel Forecast reports that companies will have more formal insight of their meeting planning and related spending in 2010. In addition, companies are expected to loosen purse-strings on events and conferences, with potential in-roads to be made by travel category managers adopting strategic meetings management programmes (SMMPs).

This is welcome news to Mandy Elliott, head of Travel & Events at Baroque Medical, who specialises in SMMPs and who has been campaigning a similar message since 2005 for more organisations in SA to adopt these programmes.

According to Elliott, there are nine key components of a successful SMMP, namely: 1. Enterprise-wide strategy and top-level buy-in 2. Policy 3. Registration of all meetings in a single place/point of accountability 4. Approval processes 5. Sourcing and procurement processes and partners 6. Planning/execution 7. Payment/expense reconciliation processes 8. Data analysis/reporting 9. Technology

Identify spend

She adds: “Firstly, you need to identify where your money is being spent – and understand the organisation’s meetings and the company culture – and as such, you’ll spend a lot of time in your finance department. You’ll also spend time speaking with people in the organisation, extracting data and identifying (and subsequently streamlining) the list of suppliers.

An SMMP can be implemented inhouse, but depending on your current portfolio and its demands, having a mentor or appropriate consultant can help you find your feet. The organisation, however, first needs to recognise the opportunity – senior management and/or EXCO buy-in is vital or the programme will fail – and it is feasible to consider employing a dedicated resource who works closely with the travel manager.”

In terms of a generalisation of spend, assuming corporate turnover is X amount, with travel and entertainment costs 2%-4% of that figure – and meetings spend 50% of travel and entertainment costs –

then the potential savings on meetings costs are between 10%-15%, she says. If one takes this into consideration, there’s a considerable percentage of SA organisations wasting vast sums of money in this ‘black hole’”.

Define service levels

The next step, as with any other commodity, is the compilation of a policy with a specific purpose, with scope, and with roles and responsibilities, inclusive of the use of third parties and so forth.

“It should no longer be the responsibility of the professional conference organiser (PCO) to lead the way. Yes, they are professional and this is their area of expertise, and organisations need this essential skill, but you also need to know exactly what you’re going to allow the PCO to do and what you’ll manage internally. Later, this will assist you with compiling a formal, detailed and effective PCO brief as to your expectations and requirements for future events. There are still unqualified ‘possessive’ secretaries calling the shots in this regard within organisations and service levels need to be more clearly defined.”

A single point of accountability (SPA) makes a difference with regard to measuring, monitoring and reporting, she says, especially when it comes to cancellations and the appropriate management thereof, as one example.

When finalising preferred suppliers and service providers, Elliott says incentive travel service providers are not automatically included in this process although some meetings do have an incentive element to them.

“Incentives sometimes happen and then they don’t. This has to be a totally separate spend category. It can be captured into the meetings spend for the relevant period, but the spend needs to be eliminated from negotiations because there’s no guarantee of the travel happening again going forward.”

In terms of payments and expense reconciliation systems, she says these processes must be clearly understood. “Some large organisations have payments running only every two weeks and this probably will not be a suitable method of payment, especially for last-minute events and expenses.”

With regard to technological assistance, Elliott recommends starting off slowly. “It’s like a self-booking tool (SBT) for

travel. If you do not have your organisation’s travel programme working like a well-oiled machine, then my recommendation would be not to implement a SBT because you may end up with more issues than you started with initially.

Similarly there is no need to hurry with implementing online technology for an SMMP, as it won’t address your current issues, but it would be something to consider, perhaps year two into your SMMP.

And then....?

Going forward, you would then expand the scope and globalisation of the project if warranted, the fine-tuning of current processes and procedures (possibly automation), next-level preferred partner strategies, leveraging your meetings and transient travel spend, maximising programme analytics, compliance management, measuring event level ROI and of course implementing eco-friendly meetings. ■

Expected savings: there is a large scope for savings, but it often also depends on the size of meetings.

The smallest meetings are where the greatest savings opportunities lie, advises Elliott.

DECEMBER 2009 • BUSINESS TRAVEL NOW

13

By Sue Lewitton

Ernst du plessis

MYTHBUSTER

Only taxes appear in the tax box of a domestic air ticket

Reality

T

HE only true ‘tax’ that appears in the tax box of a domestic ticket is VAT, which totals 14% of the applicable fare. All other amounts in the tax box are actually charges, says Chris Zweigenthal, chief executive of the Airlines Association of Southern Africa (AASA).

The charges, which are included by airlines in the tax box, are the same for all airlines.

For a domestic flight between Johannesburg and Cape Town, they would be the Airports Company South Africa (Acsa) Passenger Service Charge of R49, Civil Aviation Authority (CAA) Safety Charge of R11 and Aviation Coordination Services (ACS) charges totaling R21.

Another charge that appears in the tax box, but differs greatly between airlines, is the fuel surcharge. Zweigenthal says that any unexpected increases in the oil price, and therefore the jet fuel price, will lead to huge variations in the fuel surcharge included in the tax box.

Certain airlines choose not to show these 14 DECEMBER 2009 • BUSINESS TRAVEL NOW

“Some of our competitors charge much higher so-called taxes. This is dishonest, as the initial price looks great so travellers are drawn into the booking process only to find the fare doubles or more at the end due to so-called taxes.” taxes and charges separately and instead include them in the air fare.

Rodney James, chief executive officer of 1time, says it was the strategy of the airline from inception to include all costs of a ticket upfront.

Says James: “Some of our competitors charge

much higher so-called taxes. This is dishonest, as the initial price looks great so travellers are drawn into the booking process only to find the fare doubles or more at the end due to so-called taxes.” James says that one should also consider how these airlines calculate VAT – “Is it tax on tax?”.

South African Airways now allows passengers to view the breakdown of taxes when booking online by clicking on a link.

Vimla Maistry, SAA acting head of group corporate affairs, says the airline is testing a new development where the full fare, including all taxes, will be displayed upfront.

Ultimately, the responsibility lies with passengers to ensure they are looking at the full fare, including taxes, charges and surcharges before booking the flight. Airlines are not obligated to break down the specific charges in the tax box for the customer – their duty is only to quote the full cost to the passenger, including all taxes and charges. ■

DESTINATIONS

Freetown, Sierra Leone Levon Nathan recently visited the country and provides this update.

Getting there ■ If your corporate travel policy specifies Iata airlines only, your best bet will be Kenya Airways, which flies to Freetown four times a week on Tuesdays, Thursdays, Fridays and Sundays, departing Nairobi at 09h35. The best connections from Johannesburg to Freetown are made by taking the carrier’s 00h40 flight out of Johannesburg and arriving in Nairobi at 05h45 on one of the four days. The return flights from Freetown depart on the same days at 17h30, arriving in Nairobi at 05h30 the following day.

Passengers may then connect back to Johannesburg on Kenya Airways’ 07h15 flight from Nairobi, or the following flight at 09h10. Bellview Airlines flies from Lagos to Freetown three times a week, but this airline is not presently operating flights to Johannesburg. It does, however, intend to restart its Johannesburg flights in January 2010. In the interim, passengers may get to Lagos via SAA or Arik Air.

Airport ■ You need an extremely cool head to survive the chaos that is Lungi International Airport, as long queues for visas (required for SA passport holders), a chaotic baggage claim and unofficial luggage porters are the order of the day.

It is highly advisable to carry about US$50 in small denominations on your person to pay for necessary bribes, which go a long way towards lubricating your faster exit of the hot, stuffy airport terminals.

Then, there are the limited options for getting onto the mainland from Lungi International Airport, which is situated across an estuary just off the mainland of Freetown, as services can be unreliable at the best of times. Nevertheless, these include a seven-minute helicopter flip ($70 pp – recommended), a 20-minute hovercraft ride ($50 pp – also recommended, but there is no booking system, so expect a bun fight in the boarding process), a two-hour car-ferry ($20 pp) or six-hour taxi-cab ride for around $50 pp. Hiring of the small fishing boats is unsafe and ill-advised, especially after dark.

The helicopter (Mammy Yoko helipad) and hovercraft landing sites are situated close to several hotels in Freetown; there are no official taxis available from either of these sites. Taxi cabs are dangerous and the vehicles are often in less-than-roadworthy condition. The best option for travellers is to hire a driver beforehand who knows the pot-holed roads of Freetown well enough to navigate through the bumper-to-bumper traffic.

Freetown is the economic and financial centre of Sierra Leone. Many of the country's largest corporations locate their headquarters' home offices in Freetown as well as the majority of international companies.

Hotels ■ Accommodation in Freetown is somewhat limited and very expensive, the three main options being the Bintumani Hotel, Sierra Lighthouse Hotel (highly recommended) and the Mammy Yoko Hotel. Most hotels expect 100% of the accommodation fees upfront and can either be paid in dollars or leones.

Getting around ■ Options include taxis, minibuses and for the really daring, motorbikes, however none of these options are really safe for tourists and newcomers, as the rules of the road hardly apply here and navigating through Freetown’s traffic can be a complex and time-consuming challenge. The best option is to hire a driver for as long as necessary. For business meetings and appointments, be sure to allow at least one to two hours of travelling time, especially in and around the city centre where police roadblocks and complete road-closures for passage of dignitaries are all too common.

Fast facts • Businesspeople wear formal business attire year-round, although many offices are air-conditioned.

• Do not walk around the streets of Freetown at night, as this is dangerous and there are many hazards along the pavements and roads such as open manhole covers, missing segments of paving, feral dogs as well as petty crime.

• The local currency, leones, can be bought illegally on the streets much faster and at a better rate than through the banks, but foreigners could put themselves at risk. Note, street-changers will only accept US dollars.

• Be sure to drink bottled water or bottled and canned beverages as none of the water in Sierra Leone is potable. The same applies to ice and raw vegetables. Bottled water can be bought on the streets, but expect to pay a little more for refrigerated water.

• The local language is Krio, a Pidgin English type of dialect, but most Sierra Leoneians (or Salone) speak English and communicating is generally easy.

• There is little in the way of tourist attractions in Sierra Leone, but there are some things worth doing: Hire a boat out to the Banana Islands and various peninsulas which offer beautiful unspoilt beaches, swimming and snorkelling. Visit the Tacugama Chimp Sanctuary and Tiwai Island Wildlife Sanctuary for guided walks, bird-spotting and camping. See the historic former slave-trading port of Bunce Island, Freetown’s best-known institution; Old Fourah Bay College and the Sierra Leone Railway Museum, which houses a coach built for HM Queen Elizabeth’s 1961 visit to the city.

• Restaurants: There are few noteworthy restaurants in Freetown, but top of the list is the restaurant of the Sierra Lighthouse Hotel. Excellent Middle Eastern cuisine and a top-notch seafood menu make it one of the best. Also try the Solar Hotel restaurant for very passable Western-style food and the Indochine restaurant for particularly good Thai/Asian cuisine. ■

DECEMBER 2009 • BUSINESS TRAVEL NOW

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ON THE RADAR

Flying high In the tough times of the global economic meltdown, has the corporate jet remained a necessity or has it become the corporate symbol of excess? Words by Liesl Venter.

I

N January this year, America’s Starbucks bought a corporate jet for $45 million at about the same time they were telling employees that the credit crunch had hit home and stores were about to be closed.

By month-end, they were trying to sell the Gulfstream 550, claiming they had only ever taken delivery of it in the first place as it would have cost too much money to cancel.

“If the time versus the cost ratio works in favour of the company, it is definitely an option we look at. One cannot have senior executives and others such as engineers spending hours sitting idly at airports and if there is an incident of any kind, then time is of the essence in reacting to the problems.” – Alan Reid

In the early part of 2009, executives from across the US were using their company jets to fly into Washington DC to ask Congress for bailout money, raising the question about the role of the corporate jet in business today.

In South Africa, chartering a plane is often more economical than owning an aircraft.

According to Alan Reid, commodity manager: services BP Southern Arica, charters and helicopters are often an option to fly top executives when using scheduled airlines would be just too time consuming.

“In and around many African countries, travelling is often a challenge due to poor and unaligned schedules, resulting in lots of time being wasted at airports or extra nights in hotels.

Thus the time taken and the cost of the trip outweigh the costs of the charters.”

Most travel managers are in agreement that when used for anything but the most efficient possible business use, there is nothing wrong with owning a corporate jet or using a charter.

Says Kananelo Makhetha, md of BCD Travel South Africa: “The use of jet charters or helicopters can be costly to a client if not managed effectively.

A decision on whether to make use of a jet charter (or helicopter) needs careful evaluation and consideration.”

This should include the reason for the trip and how many

16 DECEMBER 2009 • BUSINESS TRAVEL NOW

For many companies, owning a jet is a necessity rather than a luxury – and it forms part of business strategy. Executives reach destinations rested, they can work onboard, there is very little time wasted and productivity remains optimal.

passengers would be travelling.

“It should also be assessed and then compared with normal flight bookings to find the most cost-effective travel solution.”

As thousands of people across the globe lost jobs due to the worst recession in years, warnings to executives flying their jets came from all over. American president Barack Obama chastised executives for flying to the capital in their company jets to ask for bailout money while their employees were being retrenched, with the world’s economic capital even going so far as looking at rules to force companies that received federal money to relinquish their jets.

Not all corporate jet travel is bad or unjustified, says Reid. “It offers time and convenience. If the time versus the cost ratio works in favour of the company, it is definitely an option we look at. One cannot have senior executives and others such as engineers spending hours sitting idly at airports and if there is an incident of any kind, then time is of the essence in reacting to the problems.”

For many companies, the benefits of the corporate jet far outweigh the costs, but it is a market that is shrinking.

Cost-benefit analysis

“We do not own any jets in SA, but we use a lot of charters and also helicopters,” says Reid. “Getting to oil rigs and crew changes on super tankers are but two of the areas where we only use helicopters.”

But he says it is important to do a cost-benefit analysis. “The cost of the trip is compared to the actual and hidden costs of an extended trip via scheduled airlines before we make the decision to charter an aircraft.”

There is no doubt that corporate jets also help to allay business air travel safety fears. It is not always just about cost, convenience and comfort.

Says Makhetha: “This form of transport does ensure more security and safety to travellers especially when going into unsafe and risky territories and regions.”

For many companies, owning a jet is a necessity rather than a luxury – and it forms part of business strategy. Executives reach destinations rested, they can work

ON THE RADAR

There is no doubt that corporate jets also help to allay business air travel safety fears.

It is not always just about cost, convenience and comfort.

onboard, there is very little time wasted and productivity remains optimal.

“When travelling on very short notice to a specific destination at a specific time using a charter or your own jet does make a difference,” says Makhetha. “Scheduled flights will not be able to reach the destination on time or sometimes they do not service a remote destination.”

The benefits are clear – the service is provided 24 hours a day, seven days a week, with flights to the destination of choice at the time of choice.

“There are also no time-consuming airline procedures such as airport check-in queues and specified departure time takes place in accordance with the requirements and itinerary of the traveller rather than that of the airline,” he says.

Add to that privacy and flexibility to make the most efficient use of a working day and the chartered jet becomes a viable option.

There is, however, no doubt that private jets can be and are costly. “In

the current economic climate, the requirement for chartered services has definitely declined in support of cost-reduction initiatives,” says Makhetha. “Obviously the cost of jet charters varies based on a client’s specific requirements, but for the most part, jet charter costs are far higher than normal air travel costs.

One has to then take budget into account.”

All about the money

According to a report by Reuters, the sector has faced big drops in demand as corporations cut back on discretionary spending during the recession.

In 2008, deliveries of business jets reached a peak according to the General Aviation Manufacturers Association (GAMA), a Washington-based group that tracks non-commercial aviation. According to GAMA, deliveries rose annually from 2003 to 2008, but by the first quarter of 2009, business jet shipments had dropped by nearly 36%. This is a trend that, the experts say, will continue.

Cessna, the world’s largest maker of corporate aircraft who cut hundreds of jobs to cope with the slump in the market, believes the demand will not increase for some time and that corporate jet deliveries are expected to continue to decline well into 2010. Cessna is expecting to deliver no more than 300 aircraft in 2009 – a significant decline from the 467 they delivered in 2008.

Advising a client to use a charter – be it aircraft or helicopter – will always be based on the specific needs of each client, says Makhetha. “But a detailed cost comparison between jet charters, flights and scheduled flights with reputable airlines will be provided, taking into consideration flight times per option, allowing our clients to make informed decisions.”

In Africa, the corporate jet or charter will in all probability never disappear because it is a necessity, particularly for the mining, oil and energy sectors whose travellers need to reach the far-lying and remote outskirts of areas.

Execujet, one of the country’s

“This form of transport does ensure more security and safety to travellers especially when going into unsafe and risky territories and regions.” – Kananelo Makhetha big players, is positive about the market outlook – so much so that it has just revamped its Cape Town facilities The purpose-built R250 million state-of-the-art FBO facility is strategically located parallel to the main runway and has 5 000sqm of hangar and 7000sqm of dedicated ramp parking, as well as exclusive access to the taxiway and runway of Cape Town International Airport. ■

DECEMBER 2009 • BUSINESS TRAVEL NOW

17

What is your worst nightmare when managing travel? BTN heard back from a few travel buyers about their most awkward, disastrous and sometimes even entertaining moments. Natasha Tippel takes a look…

were tough and he thought that this was an instruction from the ceo so he had no problem travelling with the masses until he found out that the rest of the team were in the front of the plane. He came back on business class and our TMC staff kept a low profile for a while.

■ “When one traveller was not given a choice of menu at a B&B, he threw his toys out of the cot and told the manager the food was tasteless. The next evening the traveller invited a guest to share in the now not-so-tasteless food.

What a miracle.

“One of our staff members refused to fly on a certain LCC flight as she had reportedly seen flames coming out of the engines. We raised the issue with the ceo of the airline who advised that this was impossible, as the engines on the plane were mounted at the back.”

■ “MY biggest nightmare is most probably finance related (i.e. cost savings). You try your best to keep costs down, but the business is very undisciplined in that business travellers miss flights by arriving late and then need to upgrade. To try and consolidate this spend is quite a nightmare and obviously the original savings go down the tube.

■ “Another frustration is when flights are booked, but not approved. Travellers arrive at the airport without payment on their tickets and end up phoning me at all hours to resolve their issues.

■ “The worst is when the deputy ceo phones from the airport with an itinerary showing all the correct flights, but the consultants forgot to reissue the round-the-world ticket and part of the ticket is not ticketed.

■ “Nightmares can crawl in when new destinations are being explored, especially if you haven’t travelled to them extensively. It is easy for a traveller to land up in Hangzhou instead of Guangzhou, as they sound similar when pronounced over the phone, especially if your Chinese is not the best.

■ “Something I’ve also learned is to never assume that a ticket or package is too expensive – this was something I did at my very first job and was told by the client: ‘I’ll be the judge of that’.”

Edcon Corporate Travel Manager, Travel Shop – Linette Mulder

18 DECEMBER 2009 • BUSINESS TRAVEL NOW

Purchaser, Central University of Technology in the Free State – Marietjie Ralph

■ “One of our managers hired a 4x4 to take him from Cape Town International Airport into the city. Imagine his surprise when the cfo, suitably advised of this, raised the issue of the conditions of roads in the Cape area at the errant traveller’s Exco meeting.

■ “Avis and Europcar are too close in the dictionary and people cannot read vouchers so arrive at the wrong desk and shout at the wrong people. Maybe we should dispense with vowels and have colour-coded vouchers.

■ “We booked the nicest hotel, 20km out of Marble Hall, the White House, which was too far for our intrepid traveller, so she was advised that the only accommodation left was a room she had to share in the B&B in town. The response was: ‘I m not here to make friends I am here to work’.

Have a guess where she stayed? 20km out of town.

■ “MY worst nightmare is that the ceo will be late for his meeting because of the flight being delayed and he gets lost, stuck in traffic or involved in a car accident, etc.

■ “These days, everyone books their tickets at the last minute, leaving few or no seats available and I’m forced to make some other arrangements as soon as possible. For example, one of our lecturers received a phone call at 15h00 to attend a meeting the next morning at 09h00 at OR Tambo International Airport.

There were no seats available. The best I could do for him was to hire a car, putting him on the road at 16h00 to Johannesburg from Bloemfontein,

■ “MY worst nightmare is the amount of changes that take place per booking. You actually wonder if you have everything correct at the end of the day, even if you still follow things up in writing. You can sometimes change each booking up to eight times a day. Passengers also don’t understand that it’s really difficult to pre-seat them again once they have changed VIP Consultant, their flights and especially if they HRG Rennies are travelling on the day they Sandton change. We do, of course, use Corporate – all possible connections in order Rolene Kirkel to pre-seat, even on the day.”

■ “We have also had an instance when a traveller thought that OR Tambo International was Afrikaans for Lanseria.

Oops – no plane”.

Michael rorke

■ “OUR chief executive was looking at cost-saving initiatives and downgraded his ticket to London from first to business class. Just at that moment, an executive from one of our other divisions asked if there was any possibility to upgrade from business to first class on the same flight. Imagine them passing each other on the stairs…

■ “The PA to one of our divisional directors, who used to have a high-powered job in government, was so overcome with the travel policy that she booked her boss an economy class flight to London. Times

Michael rorke

ON THE RADAR

Your worst nightmares

“A new traveller arrived at a small regional hotel and saw a fully stocked bar fridge. Thinking that this was a staff benefit, he ensured the fridge was nice and clean as he consumed everything.

Not to be outdone, the other three team members followed suit. What a shock when they got the bill for their own account”.

Chief Procurement Officer in the Group Shared Services Centre Division, Nedbank – Howard Stephens and organise accommodation near the airport for the night. But not to worry, there is always a plan!

■ “Another time, I had to organise for someone to be at our campus in Welkom at a specific time. I hired a car for him, but he ended up rolling the car; if it was because of speeding or some other reason, no one will ever know. Fortunately he was not hurt, but at 21h00 that night I had to organise him another car and report the accident to the car-hire company.

That night, with fear in my heart, I drove back to the campus to collect another car voucher and thanks to the car-rental company, everything was sorted out.”

VIP Consultant, HRG Rennies Sandton Corporate – Pat Pringle

■ “VISA nightmares!

Especially when an embassy gives the collection date as the same day. This reflects badly on us. It would be great if all consulates would insist that travellers have to appear in person for an interview. Another nightmare is when ceos and mds are unexpectedly bumped off a flight. This then becomes the travel agent’s problem!”

Stock xchage

8. SOUTH AFRICA Holiday Inn Express. Rates are from R175 pp sharing per night. Rate includes breakfast and two children under sixteen stay free.

Not applicable to groups of ten or more.

Offer is valid at Holiday Inn Express Cape Town, Sandton and Pretoria from December 14 to January 17.

9. DUBAI One Stop Holidays. Admiral Plaza December special – rates are from R9 240 pp sharing.

Package includes return airfare ex-Durban, airport taxes, five nights’ accommodation with breakfast, return transfers and Dubai visa. Offer is available from December 8-31.

10. ZAMBIA

1. SINGAPORE, VIETNAM & MALAYSIA Redang-Singapore-Port Klang-Singapore.

Optional Vietnam visa cost is $25 per person.

Rates are based on an inside cabin and include accommodation, onboard meals and entertainment. Offer expires January 31.

2. THAILAND

4. SWAZILAND

11. MAURITIUS

In-Vogue Tours. Five-night package to Bangkok from R9 970 pp sharing. Rate includes return flights ex-Johannesburg, return airport transfers and American breakfast daily. Special is valid from January 16 to 31 March.

The Royal Villas Hotel. Special New Year’s rate of R4 500 per couple. The rate includes six nights’ accommodation, breakfast, a New Year’s Eve buffet and entrance to the ‘House on Fire’ New Year’s Eve party with a shuttle to/from the event. Get the seventh night’s accommodation free. Rate is valid from December 28 to January 2. Christmas package also available.

Stock xchage

Triton Cape Sea Travel. Star Cruises – seven-night cruise onboard Superstar Virgo.

Rates are from $1 085 pp sharing. Cruise departs Singapore on June 6 and 20.

Ports of call: Ho Chi Minh City-Pulau

Zambezi Airlines. Special return airfares ex-Johannesburg to Lusaka for R1 999 in economy class. Offer is valid for flights on either Tuesday or Thursday at 11h10 for return on any day. Premier business class fare is R3 999 return. All travel to be completed

by March 28. Special includes airport taxes, but excludes USD25 Zambian departure tax.

5. PARIS British T.I.P.S. Three-night land-only package from R 3 745 pp sharing. Rate includes a three-night stay in the ‘City of Lights’, breakfast daily, three-day Paris Museum pass and return airport-hotel transfers. Offer is available until March 31.

6. KWAZULU NATAL

3. Italy Ski Travel. Seven-night packages at Livigno are from R7 990 pp sharing. Package includes return airport transfers ex-Zurich, apartment accommodation, Apres ski arrangements, ski equipment hire, resort entertainment programme, welcome dinner, resort rep, kids entertainment programme, tourist taxes, cleaning services. Free ski lesson at Ski School of SA in Midrand. Season starts December 5 until February 6. Ten-, 11- and 14-night packages are also available.

Protea Hotel Shakaland. Rates are from R538 pp sharing. Value-add: free breakfast, dinner and cultural experience. No minimum stay is required. Offer is not valid for groups.

Offer is valid from December 7-23 and then again from January 4-24.

7. ZIMBABWE Air Holidays. December specials – pay for two nights, stay for three. Rates are from R2 375 pp sharing. Special is inclusive of return flights ex-Johannesburg, three nights’ accommodation, three breakfasts, two dinners and a sundowner cruise. Price does not include airport taxes, which are about R1 658 pp.

Special is valid for South African passport holders only.

Tropical Island Tours. Honeymoon packages – rates are from R7 990 (groom) and R5 890 (bride). Package includes return flights ex-Johannesburg, seven nights’ accommodation with breakfast and dinner, return private airport-hotel transfers and various honeymoon extras. Special is valid from January 18 to March 7. Airport taxes are not included and are about R1 650 pp.

Package is also available ex-Cape Town and Durban.

12. ZIMBABWE Air Holidays. December specials – pay for two nights, stay for three. Rates are from R2 375 pp sharing. Special is inclusive of return flights ex-Johannesburg, three nights’ accommodation, three breakfasts, two dinners and a sundowner cruiswe. Price does not include airport taxes, which are about R1 658 pp. Special is valid for South African passport holders only.

13. NAMIBIA Sights of Nature. Three-night fly-drive package – rate is R4 990 pp sharing.

Package includes return flights ex-Cape Town to Walvis Bay, four days’ car hire and three nights’ accommodation in Swakopmund in an upmarket guesthouse with daily breakfast. Rates exclude airport taxes and are valid until December 31.

DISCLAIMER: All specials are subject to availability, currency fluctuations and seasonal surcharges. ■

DECEMBER 2009 • BUSINESS TRAVEL NOW

19

SPECIALS

DEAL DETECTIVE

Linda van der Pol, Travelinfo’s editor, is our Deal Detective, bringing you great specials from Travelinfo, the online travel information system in daily use by travel agents all over SA. Almost every airline, hotel group and car hire company is on Travelinfo, and information and specials are regularly updated. These specials are available to all staff, even for personal use. Just book through your TMC, and tell the consultant it’s a Travelinfo special. To get connected to Travelinfo, e-mail lindav@nowmedia.co.za

CALENDAR

Diarise these dates!

BTN’s Natasha Tippel has compiled a list of events potentially of interest to travel procurement professionals.

Events 2010 January • 4th EFAPCO Congress Sustainability and Competitiveness in the Meetings Industry, Brussels, Belgium (7-9) • Business Travel & Meetings Show, London, UK (9-10) • FITUR 2010 International Tourism Trade Fair, Madrid, Spain (20-24)

February

March

April

• Omega’s 12th Annual Euro-African Conference Series, London, UK & Munich, Germany (2 & 4)

• AIME 2010 (Asia Pacific Incentives & Meetings Expo), Melbourne, Australia (2-3)

• Cape Town International Jazz Festival 2010, Cape Town, SA (3-4)

• ITMSA Forum, Johannesburg, SA (18) • BIT 2010 Milan, Italy (18-21) • Meetings Africa, Johannesburg, SA (24-26) • Energy 2010 – Solutions for a new energy future in Africa, Johannesburg, SA (24-26)

July • 2010 FIFA World Cup, SA (11 June -11 July)

• ITB Berlin, Germany (10-14) • TUR 2010 Travel and Tourism Trade Fair Göteborg, Sweden (25-28)

• ITMSA Forum, Johannesburg, SA (22) • ST2010 3rd International Conference on ‘Sustainable Tourism Issues, Debates &, Challenges’ (22-25), Crete and Santorini, Greece

• Jo’burg Art Fair, Johannesburg, SA (26-28)

May • Arabian Travel Market, Dubai, UAE (4-7) • Indaba, Durban, SA (8-11) • AA Travel Guides American Express Accommodation Awards, Durban, SA (9) • ACTE Spring Global Conference, Chicago, US (16-18)

September

October

• SAACI 2010 Conference, Durban, SA (14-17)

• ESTC 2010 The Ecotourism and Sustainable Tourism Conference, Portland, Oregon, US (8-10)

• ACTE Fall Global Conference, Berlin, Germany (2-5)

• ITMSA Forum, Johannesburg, SA (25)

• Business Travel Show Dubai, UAE (25-26)

• African Airlines Association (AFRAA) 2010 AGM & Conference (date and venue tba)

• ITMSA 2010 conference, SA (15-16) • 2010 World Tourism Day, SA (27)

• ICCA (International Congress & Convention Association) Congress & Exhibition (23-27) Hyderabad, India • Airlines’ Association of Southern Africa (AASA) 2010 AGM & Conference (date and venue tba)

If you know of an annual event that you’d recommend to your peers, and it’s not mentioned here, please e-mail us with the details so we can incorporate it into the events calendar for 2011.

20 DECEMBER 2009 • BUSINESS TRAVEL NOW

• ITE 2010 24th International Travel Expo Hong Kong & MICE, Business & Incentive Travel Expo (10-13), Hong Kong, China • 2010 FIFA World Cup, SA (11 June-11 July) • Business Travel Market, London, UK (16-17)

• IMEX, Frankfurt, Germany (25-27)

August

• ITMSA Forum, Johannesburg, SA (24)

June

November

• WTM 2010 World Travel Market, London, UK (8-11)

December • The Society of Incentive Travel Executives (SITE) International Conference, Cape Town, SA (4-7)