Business Travel Now

NOW managing your travel spend better

July 2009

The baker’s man can...

Keith Phillips reviews how travel consolidation has succeeded for AVI

What corporate travel buyers earn ■ How to renegotiate your hotel deal ■ Win a two-night stay at a renovated Formula 1 Hotel ■ Should loyalty programmes be pulled for individual travellers?

■ Conference and convention venues – the latest developments

CONTENTS

When the cost is too high

A

S I write this, investigators and recovery teams are still hard at work trying to piece together why the Air France jet recently crashed into the Atlantic Ocean en route to Paris from Rio de Janeiro. Recent reports suggest that the plane may have broken up in mid-air, but until the aircraft’s data is discovered, if ever, the tragedy may remain a mystery despite whatever speculation is conveyed.

It is during times like these, when seeing images of the bodies and wreckage being retrieved from the ocean – and hearing the stories about who the victims were and why they were on the flight not to mention seeing the devastation of their loved ones – that issues with which we concern ourselves on a daily basis become irrelevant, trivial almost.

The thing is, it could have happened to any airline and to any one of us – and it did, to the victims, their families, their friends, their colleagues. Their loss is a shared loss.

So why did it happen? In a day and age where aircraft are supposed to be well-maintained technological wonders, planes are not supposed to break up in the sky – if that’s what transpired – never to be seen again except as wreckage strewn across the ocean and lost underwater. Forever ‘Delayed’.

I hope for all our sakes they find the answers they need to reduce the chances of something like this happening again.

Finding answers is what BTN is all about and while the topics up for discussion this month are not as paramount as basic aviation safety, they are still important in effective cost management strategies.

Hoteliers and corporates are feeling the pressure with respect to tighter rate negotiations – many contracts have been changed and renegotiated so we’ve addressed these issues in our Hotel Brands and How To features.

We also speak to Keith Phillips, director: AVI Finance Shared Services, about how the diverse consumer brands company has successfully consolidated and ring-fenced its travel spend.

ACTE has released the results of its recent travel buyer survey.

Among the findings, when asked whether duty of care and traveller safety measures were incorporated within travel policies, only 73.8% of travel buyer respondents said yes. For those companies that said they were still planning to (16.7%) and those that said no (9.5%), perhaps the Air France tragedy can bring it closer to home that heartbreaking stories do and will take place.

That is why safety in any form cannot be compromised.

The cost is just too high. ■ KIM COCHRANE

Brought to you by Now Media, Business Travel Now is a professional travel publication aimed at South African travel procurement decisionmakers 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.

COVER STORY For AVI, travel is an important budget. We interviewed Keith Phillips, director: AVI Finance Shared Services, about how such a diverse group has consolidated its travel spend. Cover image shot by Tijana Huysamen. Profile images (pages 6 & 7) were taken at the Bakers manufacturing plant in Isando and at the AVI office in Bryanston.

News

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How To

4

Profile

6

Power Panel

8

On the Radar

10

Mythbuster

11

On the Radar

12

Deal Detective

14

Destinations

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On the Radar

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New Option

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• ACTE releases survey results • Connex Travel joins BCD Travel global network • Nonstop to Atlanta with Delta • Cape Town’s new airport terminal nears completion • ITMSA stimulates debate in Cape Town

Renegotiating your hotel deal? How to make the best of it

The baker’s man can! BTN interviews AVI’s Keith Phillips

Should loyalty programmes be pulled for individual travellers?

Low-cost carriers on the rise

Can X-ray machines at airport security checkpoints damage data?

Conference and convention centres – the latest developments

Travelinfo specials: travel to Austria, Cape Town or the Med!

Cape Town still a competitive convention hub

Hotel brands – adding more value

Win a two-night stay at the newly renovated Formula 1 Hotel OR Tambo

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 Neo Matonkonyane 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

July 2009 • BUSINESS TRAVEL NOW

1

NEWS

What does my travel peer earn?

ACTE releases survey results

By Kim Cochrane

W

HAT are your travel peers up to? That was a topic at the recent ACTE forum held in Johannesburg where the results of ACTE’s recent survey and round-table discussions were held around the relevance of the information received.

Announcing the results, MTN group travel

manager, Warren Tanner-Ellis, said he was disappointed that only 42 respondents had participated since ACTE had sent the questions to about 250 travel buyers.

A monthly salary of between R20k and R30k appears to be what the majority of travel manager respondents earn, with at least 35.7% stating that their current net salary fell within this bracket.

What is your current net salary?

40

35

30

25

20

15

10

5

0

Response Percent 2.4%

R 9 999.00 p/m R 10 000 - 19 999.00 p/m

23.8%

R 20 000 - 29 999.00 p/m

35.7%

R 30 000 - 39 999.00 p/m

11.9%

R 40 000.00 p/m

26.2%

The results indicated the diverse array of business titles and portfolios under which travel buyers in SA could be found. Of the respondents, 45.2% were designated travel managers, which meant most respondents did not have travel as a dedicated focus.

Other titles included PA/travel booker,

50

40

30

2.4%

Travel Co-ordinator

7.1%

Travel Manager

45.2%

Procurement Manager

14.3%

Financial Manager

7.1%

Analyst

0.0%

The survey also indicated that at least 47.6% of buyers spend between 1%-24% of their time managing their TMC, while close on 65% respondents reported using only one TMC (either an offsite or onsite agency).

There were no surprises that companies (52.4%) were mostly using transaction/service fees (charged at point of sale) as fee structures, he said.

A burning question – that many skipped JULY 2009 • BUSINESS TRAVEL NOW

Adri Theron (Citibank), Bradley Cooper (Clicks) and Belinda West (Woolworths).

Response Percent

Personal Assistant/ Travel booker

Other (please specify)

2

20

0

10

What is your job title?

travel coordinator, procurement manager, financial manager, sourcing specialist, supply chain manager etc. In their positions, they reported into finance (40.5%), procurement (26.2%), HR (2.4%) and other (35.7%) such as logistics, support services, operations, facilities management etc.

Carole Graaff (Ericsson) and Anthea Hurly (Travel Linck).

23.8%

in the survey – was what savings had been measured if their company had implemented a SBT; even those who answered ‘yes’ were still relatively undecided about the level of savings achieved.

Another topic included in the survey was ‘Peer cost pressure’ where it was documented that most respondents were using Economy Class air travel and low-cost carriers to cut costs.

Other interventions included B&Bs and budget

ACTE’s Cindy Nell (left) and Monique Swart (right) with Asata ce Robyn Christie.

hotels, lower-tier rental vehicles and videoconferencing.

The event also included a presentation on spend analysis and benchmarking from Purchasing Index’s Karen van Staden in addition to a well-received speed networking session and networking lunch.

The next events are scheduled for August 25 in Cape Town and November 19 in Johannesburg. ■

From left: Geertjan Jongeneel (BCD head office), Allan Lunz (BIDTravel), Ilona de March (BCD head office), and Kananelo Makhetha (Connex Travel). Connex Travel has been trading for 21 years, according to Makhetha, and this is an important development for the SA business travel industry as a whole.

AFTER years of preparation and months of negotiation, Connex Travel has joined global travel management company, BCD Travel.

As part of the development, officially launched on June 1, Connex Travel’s trading name has changed to BCD Travel; its registered name remains Connex Travel. Meanwhile, Connex Travel remains part of BIDTravel and maintains its BBBEE status.

“This move will significantly strengthen Connex Travel’s position as a corporate TMC and enhance national and international clients’ servicing ability,” says md of BCD Travel South Africa, Kananelo Makhetha.

Under the new brand, clients can look forward to service level improvements, access to new products and technology, improved travel data management, international emergency support, efficient and cost-effective management of travel programmes as well as access to and sharing of information and trends, to mention a few benefits.

“BCD Travel is sensitive to the current economic situation and its impact on clients. Our core business is to help clients understand the total cost of travel and reduce these costs while supporting corporate objectives,” says EMEA president of BCD Travel, Ilona de March.

NEWS

Connex Travel joins BCD Travel global network

Nonstop to Atlanta with Delta

Dinner in Johannesburg, breakfast in Atlanta and lunch in San Francisco or Los Angeles – possible with Delta Air Lines’ daily nonstop service between Johannesburg and Atlanta.

DELTA Air Lines is delighted to be the first airline operating a daily nonstop service between Johannesburg and its hub, Atlanta, which offers “unrivalled connections” to the rest of the US, Canada and Mexico, says Margaret Copeland, Delta’s commercial manager for Southern Africa.

The airline implemented its revised schedule in June. Flight DL201 departs Johannesburg at 21h05, arriving in Atlanta at 07h20 the next day. The return flight departs Atlanta at 20h05 and arrives in Johannesburg at 17h10 the next day.

Says Copeland: “Our schedule has been designed to maximise customers’ time by allowing for a full day’s work or play in both the US and Johannesburg.”

The new schedule replaced Delta’s previous service to Atlanta via Dakar. A Boeing 777-200LR featuring Delta’s 180-degree flat bed seats in BusinessElite class is now used.

Meanwhile, given projected demand levels, the carrier has confirmed it will suspend its Cape Town-Atlanta service via Dakar at the end of August.

JULY 2009 • BUSINESS TRAVEL NOW

3

HOW TO

Renegotiating your hotel deal?

How to make the best of it Securing the best hotel deal is all about knowledge and systems.

Liesl Venter spoke to industry experts.

W

“A reasonable room rate is killed by an expensive breakfast, meals and other charges.”

– Alan Reid “Consider the negotiated rate and utilisation trend history of the establishment you are using as well as the movement in rack rate.”

– Belinda West

4

ANT the best hotel deal for your company? Do your homework thoroughly. That’s the message from experts in travel management who say it cannot be stressed enough.

“Like with anything, the best practice when negotiating hotel deals is to know your market,” says Alan Reid, commodity manager – services BP Southern Africa. “It’s important to understand your needs and volumes and to know your supplier’s situation.”

As the ongoing economic downturn continues to play havoc on pricing and demand, knowing what you want has become more important and experts agree poor planning has often been the most common mistake preventing the procurement of the best deals.

Corporate travel buyers wanting to take full advantage of negotiations must be clued up on all aspects all the time.

There is no doubting the importance of compliance for the hotel supplier and buyer and it remains an important tool during negotiations. Just as hotels are investing in more sophisticated technology to analyse data and traveller behaviour to aid travel managers, so too should buyers invest in the appropriate systems.

According to Shirley Le Roux, chief operating officer – Inland Tourvest Travel Services, having an effective system in place for the procuring of hotel accommodation stands first and foremost. Knowing what you spend

JULY 2009 • BUSINESS TRAVEL NOW

and where you spend helps to manage the process, says Le Roux.

“Having a highly effective approval and expense system as well as a post-travel reimbursement system, which would allow travel managers to have on overall view on T&E spend and not just travel spend, is very important.”

Belinda West, Woolworths central procurement manager for travel services, says it’s also important not to invest too much time in securing rates where the number of bed nights on offer does not warrant the effort.

Making it work Understanding the destinations your travellers frequent is extremely important when negotiating hotel deals, adds Le Roux. “Select a handful of properties per destination and base your approval limits on value per traveller as opposed to star rating.”

West agrees location is probably the most essential factor. “Travellers often prefer to stay closer to where they will be working even if this means utilising a hotel of a slightly lesser grade or limited facilities. After location, the hotel grading and the facilities of the property are also important, as is the security offered. Responsible and ethical business policy is also important to Woolworths when doing business with suppliers.”

Reid says: “Safety is a major aspect.

Within our organisation, it’s paramount and that can sometimes cause issues

with certain properties. Considering the ‘one block rule’ helps – that means how safe is it one block in each direction? And then make a decision.”

According to Reid, guest houses and B&Bs are sometimes not the answer, as they’re often more expensive, harder to book and don’t accept credit cards while also necessitating the traveller going out for dinner.

Traveller needs make the difference Says West: “Ensure your feedback channels are open. Often travellers will not report a negative experience, but refuse to utilise the hotel again.

Ensure a negative feedback, whether received directly or, more likely, imparted in passing to your TMC, is followed up and resolved.”

Le Roux advises that you also remember the bill when negotiating deals. “Ensure you negotiate an SLA with your hotel properties that takes care of billing periods to make sure bills are settled timeously. Select a cut-off period for bills to be received, as this will ensure that financial year periods are taken into account.”

Also make sure establishments bill per passenger and don’t group billings together. “This makes it easer for your TMC to invoice your bills to you. Also, if your company has to use B&Bs due to locations, ensure the establishments are credible as that will also assist with billing.”

Building loyalty through increased communication and interaction are important aspects of hotel negotiations.

Also look for the value-adds such as free shuttles, free local calls, wireless internet access and other utilities travellers may need, says Reid. “Also deal with the hotel directly rather than the ‘head office’.

Often you’ll get a much better deal going direct.”

He warns against focusing on the rate and forgetting about the extras.

“A reasonable room rate is killed by an expensive breakfast, meals and other charges.”

West concurs, saying considering all options is always the best move. “If you cannot secure what will work for your business, make sure you are also negotiating alternatives. And again, keep a careful eye on all the numbers – it cannot be stressed enough.” ■

Cape Town’s new airport terminal nears completion

C

ONSTRUCTION workers are hard at work to finish a new five-story R1.5bn central terminal building at Cape Town International Airport in time for its scheduled opening in November this year.

Project highlights are a common check-in and security processing area for domestic and international passengers, an automated R103m baggage sorting system and eight more air bridges valued at R25m. In addition, a second R394m multi-storey parkade, a R87m road network upgrade and R52m worth of additional aircraft parking bays will be completed by February/March 2010.

From November, departing passengers will drive up an elevated roadway to be dropped off 40m from the check-in counters. The two-lane drop-off area will be sheltered from inclement weather by a 25m wide porte-cochere. From March, passengers will also have a choice of two multi-storey parkades and an open parking area, totaling 8 000 bays. Two pedestrian subways will link the open parking area to the terminal, effectively separating people and vehicular traffic.

The new common check-in hall located on the third floor will have 120 check-in desks at four check-in islands, 20 self-service kiosks, with additional self-service machines in the parkades. Fully automated luggage sortation including three levels of bag screening will be a first

By Denise Slabbert

for Cape Town and reduce manual handling of bags to the loading and offloading of aircraft. The system will be able to sort 3 000 bags per hour.

Once they will have moved through security, international passengers will be diverted to the left and domestic passengers to the right to holding areas one floor below, which will be able to handle a total of 3 500 passengers an hour. Transiting passengers will no longer have to move from one terminal to another, as is the case at present.

From November, the airport will also have 10 air bridges of which four will be used for international flights and six for domestic flights.

Three airline lounges (SAA, BA and BidAir) will be situated on the fourth floor. The top floor will house a food court with eight restaurants, a public viewing deck and the airport management centre. Airline offices will be situated on the first floor.

All arriving passengers will route along passages from the existing international and domestic arrival terminals to the ground floor entrance of the new central terminal building. The ground floor of the new terminal will also house 74 shops and food outlets.

A pedestrian plaza in front of the building will provide access to the planned new rapid bus transit service, taxis and airport shuttles.

The car-rental area will be situated behind the plaza.

ITMSA stimulates debate in Cape Town A WORRYING trend for TMCs is that hard economic times are resulting in corporate clients choosing to manage domestic travel themselves.

This emerged at a recent Cape Town meeting of the Institute of Travel Management Southern Africa (ITMSA). It was the second meeting since ITMSA established a branch in Cape Town earlier this year.

Attending the second ITMSA meeting in Cape Town recently were (from left) Belinda West (Woolworths); Felicity Meyer (Ernst & Young); Barbara de Klerk (Cape Union Mart); Sharon Richards-Lund (ITMSA); Debbie Ashton (Diners Club); Old Mutual’s Sharon Koff and Roddy Mann; Jane Ledger (Diners Club); and Kerry-Lee Patmore (Protea Hotels).

ITMSA national sales and marketing manager, Sharon Richards-Lund, said this trend was growing in popularity globally, but that TMCs still had their place.

Lessons may be learned when looking at the example of Ernst & Young, which saved R2.5m since it started running its own travel office just over a year ago, handling 80% or R30m worth of its own domestic travel transactions. Similarly, Old Mutual has reduced its cost by about 20% by running its own in-house travel hub (including an international travel desk providing 24-hour support), according to the company’s procurement analyst, Roddy Mann.

The ITMSA will be hosting its 2009 conference – entitled ‘Corporate Traveller: Global Citizen’ – on September 2-3 at the Mount Grace Hotel in the Magaliesberg.

The conference agenda, speaker topics and panel discussions are designed to encourage knowledge sharing and debate during networking sessions.

Topics include balancing growth with corporate citizenship; meetings management; driving a tough travel policy; duty of care; sustainable green corporate practice; risk management, security and repatriation; as well as loyalty programmes.

JULY 2009 • BUSINESS TRAVEL NOW

5

PROFILE

The baker’s man can Photographs: Tijana Huysamen

BTN speaks with Keith Phillips, director: AVI Finance Shared Services, about how a diverse consumer brands company has consolidated and ring-fenced its travel spend.

By Kim Cochrane

AVI’s core objective is to provide enjoyment through the supply of branded value-added products, like biscuits.

Similarly, says Keith Phillips, buyers need to shop around to find the best travel deals.

F

OR AVI, travel is an important spend, says Keith Phillips, director: AVI Finance Shared Services, but it is not the group’s bread and butter – that would be baking biscuits, literally, among the manufacture and distribution of other fast-moving consumer goods.

Core brand portfolios within AVI’s structure include snacking (Bakers, Pyotts, Baumann’s and Willards), beverages (Five Roses, Freshpak, Frisco, House of Coffees, Ellis Brown and Quali Juice), beauty (Indigo Cosmetics – Yardley and Lenthéric), fashion (Spitz, Nina Roche and Jimmy Choo), chilled and frozen convenience (I&J and Denny) as well as out-of-home hospitality (Ciro and Lavazza).

“We spend between R20m and R30m a year on travel, which is substantial enough for us to look at it seriously,” says Phillips, who has a strong background in cost and management accounting. He has been with the group since 1992, when it was still called Anglovaal Industries Limited – before key restructuring initiatives of the business that is AVI today.

As such, due to his role in the company – and his passion for travel in a personal capacity – he was responsible for consolidating travel in Finance Shared Services, firstly within National Brands Limited (a wholly owned subsidiary of AVI) and then again in 2006 within the AVI Group, 6

JULY 2009 • BUSINESS TRAVEL NOW

which in itself was a big achievement particularly because, as Phillips says, people get territorial about their relationships with travel agents.

“To achieve this, we looked at best practice around our creditors, which includes travel and entertainment, and the travel portfolio was incorporated within my division.”

AVI travel hubs From a travel perspective, the group has two main hubs, one in Bryanston, Johannesburg – managed offsite by Carlson Wagonlit Travel (CWT) and another in Cape Town – managed offsite by HRG Rennies Travel. And with manufacturing facilities in Durban, this means SA’s ‘Golden Triangle’ (JNB-DUR-CPT) forms the bulk (90%) of AVI’s domestic travel.

Sub-Saharan Africa is a growing focus for the group in terms of business expansion, he says, with operations active in Botswana and Zambia in addition to exports into the continent. “One of the challenges we face with regard to Africa travel is that all roads come back to Johannesburg.

What I mean is that an area manager in Mozambique wanting to visit Botswana or Zambia generally comes to Johannesburg first.”

Since the bulk of the group’s raw ingredients are imported, there is also global travel involved

for employees, whether it’s sourcing coffee beans from Brazil, palm oil out of Malaysia, or shoes from Italy and China.

Drop-off in travel noted To manage the travel portfolio optimally, Phillips first puts a question mark after whether there is a real business need to travel and then, if the answer is yes, he considers how it can be done cost effectively within travel policy.

A priority is to move into the electronic area to enable greater visibility of savings opportunities, he states. “It has to be a conscious decision upfront so a knowledge base becomes a power base. Among other options, we’re considering mymarket.com, as I was impressed with what I saw. It’s an ideal tool that brings together issues around the need to travel, policy constraints and cost effectiveness.”

According to Phillips, AVI has seen a material drop-off in travel – about 33% – over the last year, which he attributes to disciplinary financial controls as well as an awareness of the global economy and environmental sustainability.

In support of this, he’s noted a definite uptake in video- and tele-conferencing, resulting in a greater phone bill.

He adds, however, that AVI doesn’t discourage

PROFILE

BE PRACTICAL AND FLEXIBLE WITH TRAVEL POLICY

Different travel strategies can be applied for different parts of the business depending on requirements.

In summary, he believes it’s important for corporates to be clear on what their core competence is as a business. “We’re not a travel agency and have no intention of becoming one.

We don’t really want to employ the expertise internally to replicate a TMC in-house structure and to drive economies of scale. For a R20m spend, we’d need to employ at least two people – who would get sick or resign – and then we would have built up capability in the company that is not aligned to our overall strategy. I’d be hesitant to develop that capability inhouse.”

As he says – “We produce, market and distribute South Africa’s favourite brands – that’s our bread and butter.”

“We tend to support suppliers who support us.” travel because this is where staff members gain experience. “What we do say is that we’d prefer two people to travel using Economy instead of one person flying in Business Class. When you’re sitting in Rome by yourself, you’re not sharing ideas. So we advise people to team up when they go to trade shows, for example.”

Don’t be rigid with policy While policy is important, he says to get the most out of it, it’s more important not to be rigid. In this sense, different travel strategies can be applied for different parts of the business.

“We look at why travellers are going in the first place. You’ve got to be practical and flexible. If the traveller has to work on a laptop during the flight, Economy is not always convenient. When they’re flying for more than five hours, travellers consider stepping into the zone of Business Class, but as I mentioned, if more than one person could travel to aid business objectives, then Economy is probably more feasible.”

Generally the policy is not abused. “There’s a maverick occasionally, but travellers are disciplined because there’s a good chance when you travel there’s someone else from AVI on the plane. It sticks out like a sore thumb if a junior executive is sitting in front and the seniors go to the back.”

What is more of a concern for Phillips, however, is whether the passenger chose to fly BA versus SAA, or vice versa, because of a loyalty programme. “The decision to fly should be around availability and the flight’s cost effectiveness. It should not be because of the individual’s ability to earn loyalty programme miles.”

Phillips says he will continue to work on achieving enhanced traveller awareness of alternative options open to them. “There are times when there are specials on, or when preferred hotels are not available, and then buyers or travellers have to shop around.”

Unfortunately, he says it’s difficult to drive continued relationship support for particular suppliers without an in-house reinforcing this, although an e-procurement tool could assist in this regard.

In terms of preferred partners, Phillips says with AVI being such a diverse group, he does work with group deals. “Since we own brands like Ciro that service the hotel and catering industries, we tend

Advice Due to his role and passion for travel, Keith Phillips was responsible for consolidating travel in Finance Shared Services. to support suppliers who support us, such as City Lodge. We also look at BEE-accredited suppliers.”

He adds: “In terms of TMCs, we always had an in-house arrangement for National Brands Limited in Johannesburg where the agency staff were treated as our own and invited to Christmas parties, for example. Over the past few years, CWT has been offsite (which didn’t work), then onsite, but from March this year they are offsite again because there’s more chance of this arrangement being successful now following progress in e-mail and e-tickets. There is a risk, however, of fragmentation, if travellers support other agencies or book themselves, thereby foregoing corporate deals.”

AVI does have a website where policy and partners are made clear to bookers. “An electronic age is not the death knell of travel agents because generally, companies tend to expect a lot more from secretaries these days without them also having to search for flights and best available rates.”

To keep on top of things, a travel panel – including travel bookers – meets once a month to discuss travel issues and opportunities.

Phillips says a common frustration is travellers changing tickets regularly, which pushes up prices, but he says more people are now booking in advance as opposed to the day before.

• “AVI’s core objective is to provide enjoyment to people through the supply of branded value-added products. Similarly buyers need to shop around and take advantage where they can to find value-for-money travel deals.

• Make people aware of the deals that are in place – so they can’t say they didn’t know – and then communicate how you’d like a change in behaviour. You are always going to find someone who thinks he’s doing the best for the company by saving R300, without understanding how it impacts on the bigger picture of negotiated supplier deals.

• Look at who is doing the booking and find an electronic solution.

• You only have to miss a connecting flight between London and Rome to know how important travel agents are. But you should balance the cost of booking with a travel agent versus through an e-procurement tool. Some bookers can use the tool well, others can’t.

• Unfortunately there isn’t enough transparency around airport taxes and charges, but hopefully technological solutions can help with this.”

Fact file • Destinations: Local. Regional – Botswana, Mozambique, Namibia, Zambia.

International – Australia, Brazil, China, Italy, Malaysia.

• Travellers: About 200-250.

• Partners: Air – British Airways, Comair, SAA. Payment – Diners Club. Car hire – Europcar (formerly Imperial Car Rental).

Hotel – City Lodge and Protea Hotels. ■

JULY 2009 • BUSINESS TRAVEL NOW

7

POWER PANEL

The travel loyalists In an ideal world for corporate travel buyers, should loyalty programmes be pulled for individual travellers? Kim Cochrane poses this and other questions to our panellists.

W

HEN airline loyalty programmes were originally introduced, they served the purpose of rewarding travellers, as opposed to consumers, the latter becoming the norm when the airlines brought onboard additional partners such as banks, hotels and car-rental companies, says Ingrid von Moltke, Carlson Wagonlit Travel SA national sales and marketing manager.

“The possibility of enhancing the frequent flyer’s experience through upgrades, lounge access or free tickets was an excellent marketing idea and certainly still holds great appeal for travellers. For consumers (i.e. credit cardholders), the idea of earning miles while spending is also attractive, though cardholders would be surprised to find out just how much they actually need to spend to qualify for a ‘free ticket’.”

She says loyalty programmes have now evolved into other areas and there are a host of programmes that reward in different ways.

“With human nature being what it is, incentives are always popular. Although from a corporate perspective (particularly those corporates that don’t have strongly enforced travel policies in place), the demise of the loyalty programme would probably be welcomed, as it’s common for travellers to be driven by their loyalty programmes, which can result in unnecessary costs for companies.”

“I believe the new Consumer Protection Act won’t impact loyalty programmes. Customers give explicit permission to the programme for the use of any personal data. If a traveller doesn’t want his personal data out there, he mustn’t join the programme.

There’s no such thing as a free lunch.” – Roddy Mann Should loyalty programmes be pulled for individual travellers?

A: “I don’t believe so. Frequent travel is generally not much fun and loyalty programmes that give something back, particularly where the traveller’s family can benefit as well, can compensate for the long hours on the road and being away from home. Loyalty programmes are only ever problematic for the corporate, and this can be countered by having an effective and enforced travel policy. In this way, both traveller and corporate benefit – the traveller through rewards and the corporate through happy travellers.”

Ingrid von Moltke 8

JULY 2009 • BUSINESS TRAVEL NOW

A: “Pulling the programmes is not the correct approach – rather manage the travellers’ choice by limiting supplier selection through travel policy and robust booking processes. Loyalty points are awarded to travellers based on the amount they travel; more travel yields more points.

There could be a case for redistribution. We see evidence where staff try to make trips simply to earn more miles.” Roddy Mann A: “Voyager is a loyalty programme for individuals, not for companies. The benefits are for the individuals. Loyalty programmes will always vary from industry to industry. What is ideal in the health sector might not necessarily be ideal in the travel industry. As to whether loyalty card points are currently distributed in the most effective manner, they are distributed based on the distance between airports. Miles are earned based on distance flown. This is the industry standard and ticket prices have a limited impact on miles.” Robyn Chalmers

Why does an airline generally not permit a corporate to own the miles when travel is paid for by the company?

A: “This is a notoriously difficult and sensitive area to control – how to differentiate miles/points earned by travellers in their personal capacity and those earned on company business. Any disputes between the company and traveller regarding the correct allocation of miles would be laid at the airline’s door, causing a legal and administrative nightmare. Several years ago SAA had a policy where corporates with an SAA agreement were free to choose a contract with or without Voyager miles for individual travellers. The contracts without miles created such unhappy travellers that SAA’s reputation suffered as a result and the airline abandoned the policy, opting for ‘double-dipping’ instead: corporate rates AND individual Voyager miles.” Ingrid von Moltke A: “The inevitable consequence is that the corporate will try to negotiate the value of the miles for a bigger discount or rebate.”

Roddy Mann A: “Companies do get rewarded for their patronage to SAA and so are individual travellers.

Currently companies earn travel rands, which means they get a certain amount of their travel budget reallocated to them annually and they can re-use them for their travel. On the other hand, their employees or consultants earn Voyager miles for their personal accounts.

This type of arrangement is referred to as ‘double-dip’.” Robyn Chalmers

Do suppliers incorporate loyalty programmes into corporate deal negotiations?

A: “Some suppliers do, such as hotels and car-rental companies. These are generally

Traveller loyalty can result in unnecessary costs for companies.

double-dipping deals whereby, in addition to the discounted corporate rates, the traveller earns a set number of points or miles for every stay/car rental. Certain airlines have also introduced corporate deals for SMMEs, which are based on loyalty programmes – instead of discounted corporate fares, the corporate earns points/miles for each booking and these can be redeemed for free flights/upgrades etc.

It’s noteworthy, however, that these types of deals also include points/miles for the individual traveller as per the airline’s standard loyalty programme, thereby cutting out the possibility of legal wrangling.” Ingrid von Moltke A: “Some suppliers – i.e. car rental or foreign exchange providers – explicitly offer miles for use of their services.” Roddy Mann A: “We do, yes.” Robyn Chalmers

What price are corporates paying for loyalty?

A: “Those corporates that don’t have clear and well-enforced travel policies are certainly paying the price for travellers’ preferred loyalty programmes – it is standard practice for travellers to choose travel products that support their loyalty programme even though these may be more expensive.” Ingrid von Moltke A: “Cost of the miles and cost of administration.

Lost productivity in staff spending work time on queries about their miles. Unproductive TMC time when flights are booked using redeemed miles (these processes are designed to be stressful to dissuade travellers from claiming their miles).” Roddy Mann

How is corporate loyalty best rewarded?

A: “Corporate loyalty is best rewarded by outstanding service (including recognition, preferential waitlisting, last room/car availability, upgrades, additional baggage allowances, quick and efficient problem resolution etc.) and best price for the volumes given to the supplier.” Ingrid von Moltke A: “Better service and better pricing.”

Roddy Mann

Do these programmes offer any benefits for companies?

A: “Yes, especially if companies have clear policies, which minimise the risk of abuse i.e. travel for the sake of earning miles/points and purchase of higher-priced travel products. By allowing employees and travellers to benefit from individual loyalty programmes, the company is compensating the traveller for time away from home and the early/late hours that are a common adjunct of business travel – compensation that does not need to be paid by the corporate, but reflects well on the company as a generous and caring employer. Happy travellers are generally more productive and loyal.

In addition, where the corporate earns miles through the use of a credit card in the name of an employee, these miles are used to purchase tickets and upgrades for the company.”

Ingrid von Moltke A: “There is nothing that we couldn’t buy if we wanted it, such as lounge access.” Roddy Mann

Besides compliance, what are other challenges around loyalty programmes?

A: “The main challenge, apart from policy compliance, centres around redemption of miles for the purchase of ‘free tickets’ and upgrades.

Depending on the programme, these ‘free’ tickets can be very difficult to redeem and often cause considerable frustration and resentment on the traveller’s part – this can be taken out on the TMC as not having ‘tried hard enough’. At the same time, the redemption of these tickets can be time consuming – the lack of

Robyn Chalmers, head of SAA Group Corporate Affairs

Roddy Mann, procurement analyst - Old Mutual Group Procurement Office

availability means travel consultants need to check continuously, either on the supplier’s website or through a call centre. Free tickets used for business travel are often subject to changes, as is common with corporate travel, and these are as difficult to effect as the initial booking. In addition, the TMC also often has to deal with the resolution of programme complaints i.e. where Voyager miles have been earned, but are not recorded on the traveller’s statement. This can be even more time consuming than the original booking.” Ingrid von Moltke A: “Loyalty programmes can subvert cost-containment strategies.”

Roddy Mann

POWER PANEL

Ingrid von Moltke, Carlson Wagonlit Travel SA national sales and marketing manager

5) There are also many associated companies that have joined airline loyalty programmes for the same reasons.” Roddy Mann A: “Voyager members generate about 27% of SAA’s revenue, which is a significant contribution. It also assists in SAA receiving repeat business.” Robyn Chalmers

Will travellers have to declare their miles on tax returns?

A: “This has been mentioned over the years, but so far I don’t know of any countries that have introduced this measure, but I stand to be Are loyalty corrected.” Ingrid von Moltke programmes worth A: “SARS was approached recently and noted that this ‘was not on the supplier’s while? their short-term radar’. Too many MPs would complain.”

Roddy Mann A: “Most certainly – it’s quite unbelievable how emotional travellers A: “SARS is in the process of can get about their miles and loyalty investigating this possibility and SAA Voyager awaits the outcome programme status. Even though of this.” Robyn Chalmers research shows that the average ‘free local ticket’ costs between R100 000 - R200 000 in credit card spend, the promise of a free flight for the consumer/traveller’s loyalty has undeniable power. That the world is awash with loyalty programmes bears testimony to their effectiveness in promoting the supplier’s product.”

Ingrid von Moltke A: “The airlines have implemented comprehensive loyalty programmes for some simple reasons. 1) The loyalty programme provides them with a customer database in a cost-effective way. 2) The airlines’ costs of loyalty programmes are offset by enhanced revenue. 3) The airlines use loyalty programmes as a way to drive traveller preference for their services. 4) The airlines exploit basic human psychology – most people like something for free. A free ticket is nice. It is the airlines who have promoted the benefits of loyalty programmes because travel is stressful. Consider this: if the airlines enhanced their services, stopped losing luggage, improved the in-flight food, simplified check-in and so forth, there would be huge loyalty. But this approach costs more than a loyalty programme. Remember the actual redemption rates for loyalty programmes are often quite low.

BTN0836SD And points expire.

How do programmes impact the tripartite relationship?

A: “TMCs spend a lot longer on booking a loyalty ticket than they would for a regular ticket and generally their staff have low regard for loyalty programmes.”

Roddy Mann A: “This can be seen as beneficial to all parties concerned in a sense that the supplier gets repeat business from TMCs and customers.

Once the customer exercises this loyalty, the TMC gets recognition for its continuing business with the supplier and the client has two parties that have his/her best interests at heart.” Robyn Chalmers

Next month…

Next month our panel will debate transparency in the business travel industry. What does it really mean?

JULY 2009 • BUSINESS TRAVEL NOW

9

ON THE RADAR

Low-cost carriers on the rise There’s been a noticeable uptake of low-cost carriers (LCCs) from Corporate SA, particularly as LCCs continue to enhance services in line with corporate requirements. Kim Cochrane looks at why LCCs are carriers of choice.

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HEN it comes to business travel, the low-cost carrier (LCC) has come into its own and buyers are increasingly approaching LCCs to negotiate contracts.

Says Metropolitan’s Jenny Poate: “We look for cost savings and we get good fares from the LCCs. They are also always willing to accommodate corporates and offer good contracts, which is of the utmost importance to us.”

Yet while the price of fares is a drawcard, there are still those travellers reluctant to venture into LCC territory due in part to the misperception that older aircraft are used and possibly because they don’t want to fork out for refreshments.

Desmond O’Connor, 1time commercial director, says to be honest, a lot of these misperceptions have been overcome. “We’ve seen a huge drive to use LCCs, particularly from cost-conscious companies prepared to put travel policies in place. Last year, the domestic travel market dropped around 6%, yet 1time grew 16%, proving that people are shifting onto LCCs. There’s a large company in Cape Town that up until about a year ago traditionally only flew legacy carriers.

The latest policy is that all travel must occur on LCCs and premium carriers may only be used on routes where LCCs don’t operate. Procurement managers and FDs have seen evidence that there’re no safety issues and also that LCCs often have better on-time performances.”

“Travellers need to understand that not all LCCs are the same.

Some try to be really cheap, and some try to be really funny. 1time, however, focuses primarily on the corporate market.”

– Des O’Connor Mango ceo, Nico Bezuidenhout, says the SA market is now fairly well educated in terms of low-cost aviation. “We’ve noted a marked shift in corporate travel patterns. In anticipation of an increase in demand from corporates, last year we introduced Mango Plus and earlier this year, Mango Flex – two business travel products specifically created to deliver same-route flexibility without penalties.

Mango Plus also offers the added benefits of Bid Air Premier Lounge Access, 10kg additional check-in luggage and R40 onboard refreshment vouchers. With us, travellers are able to pre-seat online and use self-service check-in facilities in Durban, Cape Town and at ORTIA. In response to the safety issue, Mango operates new generation Boeing 737-800 aircraft.”

10 JULY 2009 • BUSINESS TRAVEL NOW

“On average, LCCs are more affordable and corporates will make significant savings. I’d suggest shopping around, but ensure that advertised fares include all third party taxes, as many airlines quote lower prices exclusive of taxes or charges.

Mango quotes its fares, all-inclusive, upfront.”

– Nico Bezuidenhout According to kulula.com executive manager: sales and route development, Stuart Cochrane, another misperception is that travelling on LCCs is a downgrade in travel. “The term ‘downgrading’ is wrong, as it brings about unnecessary negative perceptions. Travelling on LCCs should rather be viewed as ‘making the smart choice’ in this economic climate.”

“Flying on kulula.com doesn’t mean a compromise on customer experience, convenient schedule, frequency and most importantly safety.

We’ve evolved in response to demand and have been quick to market because our business model allows for this. This is important for corporate travellers who value anything that enhances their business or working day.” – Stuart Cochrane He confirms kulula.com has seen more corporates utilising its services. “Generally with the larger companies, we’re experiencing a ‘split’ in travel spend, which has historically all gone to

the legacy carriers. Price will always be a factor, but schedule and flexibility remain key drivers to secure corporate business. Kulula.com has an advantage in that we operate a schedule from Lanseria International Airport, which has grown almost exponentially since we started flying there.”

He adds: “We recently doubled our flights between Cape Town and Lanseria to 35 a week, with six weekday and five Sunday flights. We’ve also boosted frequency between Durban and Lanseria to two daily flights everyday except Saturday.”

According to him, operating costs out of Lanseria are lower and this saving is passed on to customers.

O’Connor believes frequent travellers look for different things, which 1time is delivering, such as same-day return check-in, self check-in and priority seating. “We also guarantee fixed rates across all flights so corporates can budget effectively, and remove all advance booking rules/minimum stays so regardless of when the client books, the cost of the trip is always the same. Bookers can organise meal vouchers so passengers don’t have to pay out of their own pockets.”

Concludes Bezuidenhout: “Today’s corporates are interested in extracting value from their investments and therein lies the true challenge for legacy carriers and LCCs. There will always be Business Class travellers, but most companies are taking a more prudent approach to travel expenditure.” ■

News briefs • Mango expands route MANGO plans to increase its route network and presently operates an average of 30 flights daily between JNB/CPT, JNB/DUR, DUR/CPT and BFN/CPT. A key benefit for bookers, says Bezuidenhout, is accessibility through various distribution channels (also including Shoprite Checkers and Checkers Hyper Money Market counters) and payment method acceptances (credit cards, debit transfers, Edgars and Jet account cards, FNB Cell Pay Point and Nedbank N-Pay).

• Increased frequencies for 1Time 1TIME has increased frequencies on the Golden Triangle routes. “All our early morning and evening flights are geared around ensuring that corporate travellers can do a same-day return trip and make the most of the time available at their destinations. Passengers can almost always get a flight within 90 minutes of what they request.”

• Kulula rewards loyalty KULULA.COM continues to evolve its corporate proposition, says Cochrane.

“One of the bigger changes from our original business model back in 2001 is that we’ve added an element of acknowledging loyalty through our jetsetters programme.”

MYTHBUSTER

X-ray machines at airport security checkpoints can damage data on your laptops and cameras

Ernst du plessis

By Sue Lewitton

Reality

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ANY travellers are concerned about putting valuables like laptops, cameras, memory sticks and cellphones through x-ray machines at airport security checkpoints, with fears that it may somehow wipe off vital data stored on the electronic devices.

“The reason laptops are screened separately is a requirement by the civil aviation authority.”

But according to Solomon Makgale, group manager: communications for Airports Company South Africa (Acsa), these fears are unfounded, as he says the x-ray machines at airports do not in any way damage electronic equipment.

“The reason laptops are screened separately is a requirement by the civil aviation authority,” adds Makgale.

Airport x-ray machines do not emit any electromagnetic energy and therefore cannot destroy electronics or magnetic-sensitive data.

On the other hand, walk-through or hand-held metal detectors can result in significant damage to laptops and other electronic equipment because of the magnetic exposure. Travellers should always request that these types of magnetic devices are not used on their electronics.

The myth that x-rays can destroy data on laptops and cameras originates from the reality of the damage that can be inflicted upon traditional camera film when passing through security checkpoints. The light emitted from airport x-rays can destroy highly sensitive film material over 1 000ASA/31 DIN. Acsa says that this type of film should be removed and offered for separate screening.

Kodak says x-ray scanners may fog unprocessed film, particularly the scanners used on checked luggage, as higher-energy x-rays tend to be used on bags put into the hold. Multiple scans when connecting on several flights could also result in damage to camera film. Film manufacturers urge travellers

rather to have film processed locally before travelling back home, or to carry it as hand luggage and request a hand inspection by security officials to avoid potential damage.

“Walk-through or hand-held metal detectors can result in significant damage to laptops and other electronic equipment because of the magnetic exposure.”

The flash cards used to stored pictures on digital cameras and cellphones are safe in either checked or handheld luggage and will not be wiped clear or damaged, as these devices are not susceptible to the same light sensitivity issues as traditional camera film. ■ JULY 2009 • BUSINESS TRAVEL NOW

11

ON THE RADAR

Conference and convention centres SA has a wide range of venues to suit all requirements. But how can venues add value to corporates’ conferencing experiences? By Natasha Tippel.

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HETHER a company is planning an international conference with thousands of delegates or seeking a private boardroom for smaller, more intimate high-level meetings, SA has a wide range of venues to suit all requirements.

Says Rennies Travel manager of incentive and event management, Kathy Nel: “Clients are usually looking for a venue that is close to their offices, the airport or any other relevant place to their business.”

She notes that conference facilities need to be of a high standard with excellent service, but that the client’s budget ultimately influences what venue is selected.

Manager of Carlson Wagonlit Travel meetings and events in SA, Karen Shenker, agrees: “The choice of venue is mostly dictated by clients’ requirements – location, costs, flexibility, availability, type of accommodation, turnaround time and suitability of cuisine. Cost is presently the biggest criteria, but service delivery is of the utmost importance.”

Mary Reynolds of SA Reynolds Travel Centre states once the client’s needs, as far as location and accommodation, are met and their budget has been taken into consideration, she looks at the venue’s ability to be versatile and adaptable.

“We prefer the venue to have a dedicated conference coordinator to take care of our client’s needs. Their ability to be proactive, show special attention to detail and have back-up plans in place determines our choice of venue.”

Shenker adds that should teambuilding be part of the brief, then activities and attractions within the area are assessed. ■

East London gets beachfront ICC

The International Convention Centre East London, managed by Premier Hotels and Resorts International, is scheduled to open its doors in July. Located on the Esplanade, the complex incorporates the 254-room Premier Hotel Cascades as well as the adjacent 175 rooms of the Premier Hotel Regent, offering a range of accommodation options. The complex features a 600-seater auditorium, a 2 200sqm exhibition hall, three conference rooms with a combined floor space of 800sqm, multiple breakaway and boardrooms, and various restaurants. The centre can accommodate small meetings for groups of ten and schoolroom-style conferencing for up to 1 400 delegates, while the largest room can accommodate 2 150 delegates cinema-style.

12 JULY 2009 • BUSINESS TRAVEL NOW

CSIR ICC set for expansion

An artist’s impression of CSIR ICC’s new exhibition hall and deck.

THE Council for Scientific and Industrial Research (CSIR) is set to expand the facilities offered at its International Convention Centre.

The purpose of the project, due to be completed by year-end, is to ensure the centre is an ideal venue for mediumsized Confex’s (conferences with parallel exhibitions/poster displays) of up to 500 delegates, including new customised facilities for organisers, VIPs, exhibitors and delegates.

CSIR ICC’s marketing and sales manager, Bronwen Cadle, notes: “While much of the expansion focuses on exhibition space, it’s important to note that we’re not entering into the trade fair or expo market. The market for academic, scientific and association conferences with parallel exhibitions is growing. Accordingly, our

Slicker venue opens in Cape Town CBD

THE Townhouse Hotel has opened a new conference centre in a prime location around the corner from Parliament in downtown Cape Town. It is part of an R11m refurbishment of the now-rebranded Townhouse Hotel & Conference Centre.

The centre itself spans two floors, caters for up to 240 delegates and offers secure parking. Features include the latest audio-visual technology, breakaway rooms and a range of flexible layout solutions.

Various conference packages are available, including half- and full-day catered or non-catered options, with custom packages on offer for events such as product launches, cocktail functions and corporate breakfasts.

Customised conference/overnight packages are also available.

new exhibition space and related facilities will focus on being able to accommodate conferences with parallel exhibitions, breakaway sessions, work spaces and other related venue requirements seamlessly in one large flowing building on predominantly one level, maximising the quality of the experience for organisers, exhibitors and delegates alike.”

The new facilities include 1 000sqm of exhibition space with an exhibition organiser’s office, sufficient storage space for exhibitors, ramp access, floor loading capacity to carry vehicles, and floor-recessed service grid for telecommunications and power supplies.

In addition, a VIP drop-off zone, conference organisers’ facilities, amenities for disabled persons and outdoor facilities are being constructed.

Pezula draws visitors to the Garden Route

PEZULA Resort Hotel & Spa in Knysna has put together various packages for 2010, which are packed with activities including game viewing, mountain biking, canoe trips and lagoon cruises.

As an example, the ‘Living La Vida’ package will see guests whisked off to Pezula in a luxury vehicle on arrival at George Airport. They’ll spend their getaway being pampered in Pezula’s spa, relaxing on the beach at Noetzie with a private picnic for two and enjoying a gourmet dinner from Zachary’s restaurant in the privacy of their suite. The package also includes a private sunset lagoon cruise, gourmet dinner at a top Knysna restaurant, private guided walk through the resort’s ancient indigenous forests and a canoe trip along the Noetzie River.

The 78-suite boutique hotel features two executive boardrooms, a 24-hour business centre and accommodation with Wi-Fi connectivity.

SXC

SPECIALS

DEAL DETECTIVE

1. AUSTRIA 360 Ski. “Sizzling Saalbach Special” – seven-night package from €526 per adult sharing in a standard double/twin room. Special includes return airport/hotel transfers from Munich Airport, seven nights’ accommodation at a centrally located pension, breakfast

daily, welcome dinner, six days’ ski hire, six-day ski pass, kids and teen programme. Optional entertainment programme for purchase in the resort is available. Offer is valid from December 9 to 16 and excludes flights.

2. DUBAI

4. LIMPOPO

6. MOZAMBIQUE

Emirates Airlines. “Kids Go Free” promotion valid until September 20. One child under the age of 16 flies free and up to a maximum of two children stay, eat and play free in Dubai when travelling with two adults. Children will have free entry to a wide range of Dubai’s most interesting children’s attractions. Offer includes meet and assist at Dubai International Airport, but excludes airport taxes.

Packages have to be booked for a minimum of three nights. This special is available to all economy and business-class travellers ex-Johannesburg and Cape Town.

Zwahili Private Game Lodge.

Last-minute/winter specials – rates are valid until July 31. Rates are from R1 250 (ten days prior to arrival) and R1 150 (five days prior to arrival) pps per night. This includes accommodation with a five-course dinner, full breakfast, two game drives daily, high tea and complimentary Indian head massage. Other activities are also available.

Mozambique Tours. SA Residents’ special offer at Pestana Inhaca Lodge. Five-night fly-in package rate from R5 240 pps. Special includes return flights ex-Johannesburg, island transfers, accommodation with breakfast and dinner plus selected free activities. Rate excludes taxes, which are about R1 700.

Offer is valid during July and September.

3. ZIMBABWE & BOTSWANA

5. DURBAN

Flame of Africa. Five-day packages from R7 140 pps. Offer includes return airfares ex-Johannesburg, transfers, two nights at A’ Zambezi River Lodge, two nights at Chobe Safari Lodge, daily breakfast and dinner, free tour of the Falls and park entrance fees, two boat cruises, one game drive in Chobe National Park and two days’ park fees. Rate excludes airport departure taxes of about R1 800 and are valid until September 30.

SA Sport Packages. 2009 Tri-Nations SA versus New Zealand.

Fly-drive packages from R3 990 pps. Offer includes return flights ex-Johannesburg to Durban, two days’ car hire and two nights’ accommodation in a four-star hotel with daily breakfast and match tickets.

14 JULY 2009 • BUSINESS TRAVEL NOW

7. THAILAND Club Med. Phuket offer – second person pays less 50%. Rate for first adult is R9 695 and the second adult pays R6 950.

Rate excludes approximate taxes of R2 950 pp. Package includes return flights ex-Johannesburg, airport transfers, seven nights’ accommodation on a full-board basis (breakfast, lunch, dinner, table wine, local beer and soft drinks with lunch and dinner), open bar day and evening, snacking, range of sports and leisure activities (water and land), entertainment and comprehensive travel insurance.

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

8. Cape Town GOOGLE

Holiday Inn Express Cape Town City Centre. “Winter Weekend Warmer” – special rates are from R335 pps on a room-only basis. Two children under 16 stay free. Offer is valid until August 31 for Friday, Saturday and Sunday stays only.

9. KWAZULU NATAL

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Three Cities. Winter special at Alpine Heath Resort. Rates are from R1 500 per chalet per night – maximum six persons per chalet. Minimum two-night stay is required. Child entertainment programme during weekends and throughout the school holidays. Offer expires September 30. Specials at other properties are also available.

10. Mediterranean White Star Cruise & Travel. P&O Cruises – 13-night cruise from R14 405 pps (saving of R6 392 pps). Cruise onboard the Oceana, visiting Barcelona, Villefranche, Florence/Pisa, Rome, Alicante and Gibraltar returning to Southampton. Price includes accommodation in an outside cabin, taxes, all meals and onboard entertainment. Cruise departs Southampton on October 17.

11. SUN CITY Sun International Dreams. Special packages to Sun City. Rates are from R975 pps. This includes two nights’ accommodation and daily breakfast. Fly-in packages ex-Cape Town and Durban are also available. Special expires August 31. Rate is valid for midweek and Sunday to Thursday nights stays only.

12. GAUTENG Mercure Hotels South Africa. Rates are from R399 per room per night. Rate is a room-only basis. The hotel offers Wi-Fi, selected satellite channels, breakfast restaurant and restaurant facilities within walking distance. Offer is valid until December 31. ■

BTN0835SD

JULY 2009 • BUSINESS TRAVEL NOW

15

DESTINATIONS

Cape Town remains competitive convention hub

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APE Town has become the most important convention and exhibition destination in Africa. The city now hosts two-thirds of all international meetings in SA and one in four international meetings in Africa.

Recently, Cape Town attained 35th place (two places up from its previous position) in the global ranking of the highly acclaimed International Congress and Convention Association (ICCA). Cape Town is also one of only eight cities that make up the BestCities Global Alliance, placing it on an equal footing with Copenhagen, Dubai, Edinburgh, Melbourne, San Juan, Singapore and Vancouver.

Cape Town Routes Unlimited (CTRU) ce, Calvyn Gilfellan, says Cape Town remains a robust and competitive meetings destination despite tough economic times.

Cape Town Convention Bureau (CVB) manager, Amanda Kotze-Nhlapo, agrees the Cape Town business tourism sector has remained buoyant.

The CVB last year prepared and submitted 43 bids/proposals for international conferences and incentives, successfully securing 20 with an estimated economic impact of R256.63m. The city has more than 101 meeting venues and in excess of 445 meeting rooms.

In 2009, Cape Town expects 25 950 delegates generating an estimated R301m in revenue. In 2010 and 2011, it will host 21 international conferences, with an expected boost of R324.8m.

Gilfellan says 70% of delegates, who normally spend more than R13 000 per person during their stay, visit the city again within five years, demonstrating the important spin-off effect of business tourism.

The CTICC undoubtedly is the major contributor to Cape Town’s growing profile as a leading global business, conference and events destination. CTICC md, Dirk Elzinga, says last year, CTICC hosted more than 500 events for the second consecutive year and welcomed almost 550 000 delegates. It also hosted several mega conventions attended by as many as 12 000 delegates. High occupancy levels have put pressure on existing facilities with the result that CTICC is poised to double its capacity through expansion.

Hotel boom amid tough conditions HOTELS are opening up all over Cape Town and the Western Cape in preparation for the expected visitor boom during and after the 2010 Fifa World Cup. At least 10 have opened since the beginning of last year, with nine more expected before kick-off next year, which will add almost 2 000 hotel rooms to an already recession-strained market presently totalling 5 000 rooms. Hoteliers – particular those of

five-star establishments – have reported difficult trading conditions over the past six months as cash-strapped consumers downgrade.

Among the most high-profile new establishments are the five-star, 131-room One&Only resort at the V&A Waterfront and the five-star, 174-room Taj Hotel – Africa’s first – currently under construction in the city centre.

At least five other five-star hotels and a couple of boutique hotels are under construction.

Where to buy a gift?

Looking for that special souvenir or gifts for the folks back home? Cape Town has some interesting alternatives to the stomping grounds of the V&A Waterfront, Cavendish Square and Canal Walk shopping centres.

The city’s new ‘green’ shopping mall at 210 Long Street is constructed entirely out of recycled bricks.

Offering a ‘sustainable shopping experience’, each shop in the mall has been asked to incorporate at least 10% green products.

The Old Biscuit Mill organic market in Woodstock (337-375 Albert Road Lower Main Road) is a street feast of organic offerings on Saturdays. Also in Woodstock, you’ll find Greatmore Studios. Local and international artists interact and exchange ideas and skills here.

The Cape Quarter, built in the Cape Malay architecture of the colourful De Waterkant, is being extended and due to open in September this year with a more upmarket focus.

16 JULY 2009 • BUSINESS TRAVEL NOW

A good meal Some winners of the 2008 Prudential Eat Out Restaurants Awards: • La Colombe, Constantia Uitsig Wine Estate • Jardine, 185 Bree Street • Bizerca, Foreshore, Cape Town Other notable restaurants: • 1800° Grill Room, Greenpoint • Anatoli Turkish Restaurant, Greenpoint • Andiamo Deli Restaurant & Bar in the Cape Quarter • Haiku, CBD • Five Flies Restaurant, CBD • The Kove, Camps Bay • Emily’s Restaurant, V&A Waterfront • Magica Roma, Pinelands • Kitima (Kronendal Estate), Hout Bay

By Hilka Birns

Off the beaten track

Be adventurous and venture off the well-worn path of touristy things to do in Cape Town and the Western Cape. Here are some recommendations for incentives or spare leisure time from Cape Town Routes Unlimited and Cape Town Tourism: • Cycle with zebras: At Buffalo Hills African Adventure Reserve in Plettenberg Bay. • Scuba dive with seals: You need a permit, but scuba diving companies include permits in their packages and will pick you up on your doorstep.

• Build a snowman in Africa: Hire 4x4s and drive to Ceres, where it snows once a year (around July). Have a go at making an African snowman or simply toss snowballs at your colleagues. In November, you can pick your own cherries at Klondike Farm.

• Grape stomping in Franschhoek: Pick your own grapes and get knee-deep into the fun of winemaking (and tasting) during the wine harvest at participating wine farms.

• Heart of Cape Town Museum: Relive the first heart transplant performed by Dr Christiaan Barnard in the actual operating theatre where the drama took place in 1967.

An authentic representation of the operation includes life-size exhibits, original newspaper clippings narrating details of the operation, as well as actual preserved hearts of donors and recipients.

• Hog Heaven: Nothing compares to the thrill of riding on a Harley-Davidson along some of the Western Cape’s best hog trails.

The Franschhoek Pass in the Winelands is an absolute must-do. Or try the Cape West Coast roads during wild flower season from July to October, or clear your head in the open spaces of the Klein Karoo.

• Fly a jet: Get fitted with a flight suit and helmet and let an experienced fighter pilot help you choreograph a trajectory in the sky in one of Thunder City’s fleet of historic fighter jets.

• Coffeebeans Routes: This quirky operator offers anything from Cape Malay cooking safaris, music dinners in exclusive locations, music workshops, Jazz safaris to a day of carnival madness, where you learn to play the instruments, sing the songs and march in the streets with a carnival troupe.

• Diamond Works: Take a 20-minute tour complete with champagne greeting. ■

ON THE RADAR

Hotel brands must add more value As the economy continues its downturn, forcing corporates to change travel patterns, hotel brands are putting greater focus on adding value to accommodation options. Natasha Tippel reports.

R

ECENT surveys indicate that the average length of corporate hotel stays has fallen with the economic recession. Business travellers are opting for shorter trips and using teleconferencing facilities as well as other means to conduct business.

The Relais Hotel group has noted a major downscaling and consolidation in travel and companies’ travel spend, with teleconferencing and day trips now considered more viable options by many companies.

National sales and marketing manager of Carlson Wagonlit Travel in SA, Ingrid von Moltke, agrees: “As a TMC, we’ve noticed several strategies employed by our corporate clients. These include reduced length of accommodation stays; flying in and out on the same day for domestic travel; and more use of conference-calling, teleconferencing in particular, as this is cheaper and easier to set up than videoconferencing.”

South African Travel Centre ceo, Thapelo Lehasa, affirms that the focus is on more affordable accommodation alternatives that don’t necessarily equate to lower customer service experiences. Options include B&Bs and small chain/group-owned accommodation brands that don’t belong to global high-fixed-cost hotel brands.

Von Moltke states: “Global companies continue to support their global preferred hotel partners although they may move down a star rating, but local corporates are increasingly looking for best value-for-money, which may include moving to B&Bs and guesthouses as well as moving down a star rating.”

Adding value Hotel brands have to be increasingly innovative to ensure they provide corporates with the best return on investment for their accommodation budgets.

Md of Accor Hospitality for South and East Africa and the Indian Ocean, Philippe Trapp, notes that the economic situation has allowed businesses to remodel their strategies. “Accor Hospitality has brands adapted to all market segments, offering hotels and services that meet all budgets and requirements.”

Says Protea Hotels group marketing director, Danny Bryer: “We’re pricing realistically and adding value on accommodation with discounts on meals, internet access, etc.”

Pressure has also been placed on hoteliers and corporates for tighter rate negotiations.

“Many ‘contractual’ obligations have been changed and renegotiated,” says Peermont Hotels chief commercial officer, Mark Jakins.

“Annual planning is key to business success.

It provides the opportunity for corporate travel managers to enter into annual rate agreements or negotiations for better rates in exchange for volume commitments.”

He adds: “Communication and customer relationship building also play a vital role in business success. Product updates should be communicated by hoteliers on a regular basis.

Another key requirement is mutual discussions

New flagship hotel for Rosebank

ROSEBANK’s flagship hotel, The Rosebank, having completed its R315m refurbishment, is now enjoying the benefits of being linked with one of the world’s largest hotel groups, the InterContinental Hotels Group (IHG) and its Crowne Plaza Hotels & Resorts brand.

Hospitality Property Fund (HPF) through the Hospitality Hotel Management Company, which manages The Rosebank, recently entered into a franchise agreement with IHG, resulting in the hotel being rebranded as the Crowne Plaza Johannesburg – The Rosebank (318 rooms), the first hotel in SA to comply with the stringent safety and security Crowne Plaza standards.

Hallmark standards also include the Club Rooms and Club Lounge, business and meeting facilities, 24-hour room service and the Sleep Advantage programme, which

comprises sleep products and quiet zones to give guests quality sleep.

Further benefits of the agreement include the advanced global reservations technology system, which allows the property to attract a global audience and capitalise on conference business through the brand’s “Meeting for success” conference platform, and the offer of Best Available Rates through the IHG web site. The hotel is also incorporated into the Crowne Plaza’s contractual accommodation arrangements with multinational corporations and is geared up to accommodate business traveller needs including wireless internet access, videoconferencing and a range of flexible meeting facilities. The hotel also offers the Seven Colours Spa. This agreement sees the return of the Crowne Plaza brand to SA.

“Communication is a key factor. It’s important for corporates to educate their staff about what they can expect at different hotel brands. For example, it’s totally unrealistic for someone to expect four-star features at a two-star hotel.”

– Peter Schoeman (City Lodge) and understanding of customer satisfaction via surveys and interviews that provide information about food and beverage quality, in-room experiences, business connectivity services and technology, porterage and parking, security and overall quality of stay,” says Jenkins.

Another challenge for clients who have corporate deals is the lack of availability of rooms on their corporate rate, although some deals do guarantee last room availability, says von Moltke. “Other issues are related to the

policy of Best Available Rate (BAR), which gives the corporate inconsistent rates with the corresponding budgeting difficulties.

Stop sale and black out periods during major sporting events are also problematic – it would be appreciated if hotels could allocate some rooms to regular corporate travel during these periods.”

Travel with Flair md, Johanna Mukoki, agrees, noting that it’s difficult to forecast expenditure when Best Available Rates keep changing.

JULY 2009 • BUSINESS TRAVEL NOW

17

ON THE RADAR

Pressure has been placed on hoteliers and corporates for tighter rate negotiations.

Many contracts have already been changed and renegotiated.

Product news ■

■

THE City Lodge Hotels group is developing two new hotels in Pretoria, bringing 389 additional rooms to the city in the second half of 2010.

The 202-room City Lodge Lynnwood is expected to have most of its rooms open in time for the 2010 Soccer World Cup and the 187-room City Lodge Hatfield is expected to have a phased opening between September and December next year.

The group is also working on three other developments around SA at a cost of around R369m – the 211-room City Lodge Fourways (expected to open between December 2009 and February 2010); the 303-room City Lodge OR Tambo (expected to open in mid-2010); and Road Lodge Umhlanga (expected to open in August 2009).

The Hilton Hotel Group is now offering full-service meeting facility access to guests 24-hours a day, every day.

The service, originally launched in 2008, has seen increased popularity with guests using meeting rooms and hotel business centres late into the night.

A day’s notice is required at the Hilton Durban and Hilton Sandton hotels to reserve office, boardroom or business centre space for guests.

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18 JULY 2009 • BUSINESS TRAVEL NOW

Formula 1 hotel rooms to get a new look ■

The DaVinci Hotel, part of Legacy Corner, is being constructed at the corner of Fifth and Maude Streets in Sandton and is set to open in 2010. The hotel will feature 170 rooms spanning six floors and 5 000sqm of retail and entertainment space over three floors. It will also feature an infinity heated swimming pool, full business facilities, an a la carte restaurant and delicatessen, and a health spa and gym.

■

The Wheatbaker, Legacy Hotels’ first property in Nigeria, will open in late 2009. Located in the residential heart of Ikoyi, Lagos, the five-star hotel will offer 70 luxury rooms and suites, an a la carte restaurant, a deli, a health spa and gymnasium, full business facilities and conferencing for 200 delegates.

■

Business travellers can now stay connected with the launch of the Link@Sheraton experienced with Microsoft. One of the group’s newest facilities has opened at the Sheraton Pretoria Hotel and Towers. The business hub includes access to free Wi-Fi, free PC workstations, TV on PC workstations, and printing facilities, as well as a food and beverage outlet.

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In SA, Accor Hospitality’s Formula 1 budget hotel rooms are being renovated.

The first hotel to be refurbished and complete by end-August will be the Formula 1 at OR Tambo International Airport. Specialised in low-cost design and ergonomic solutions, the Priestman Goode design agency developed the new concept for the rooms, along with Accor’s innovations and design teams. Two types of room that will be offered are a triple and a double room.

Pictured is an artist’s impression of the new Formula 1 hotels’ bedroom design.

See page 20 to win.

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NEW OPTION

Competition A unique low-cost hotel experience...

F

ORMULA 1, South Africa’s best priced international hotel chain nationwide, is transforming to provide its valued guests, a new era in away-from-home comfort. From the inclusion of desk space, separate shower and toilet, high technology lighting, flat screen televisions and many more state-of-the-stay designs.

“Innovation, a value we share, is what Formula 1 is all about”, says md Hotel Formula 1 (Pty) Ltd, Zahra Peera.

“Specialised in low-cost design and ergonomic solutions, the Priestman Goode design agency developed the new concept for these rooms, also trademarked as Cocoon, along with Accor’s innovations and design teams. “Our vision is to become the reference, the best of low cost and consolidate our leadership in the low cost market in South Africa whilst continuing to maintain high quality and standards. The result is a bright, fresh and transparent guest experience, enhanced by a range of new or improved amenities.

It is with perfection and attention to details and the environment that guests will have even more reasons to make Hotel Formula 1 their cocoon.”

All 21 Formula 1 hotels will gradually be renovated. The first South African refurbished Formula 1 hotel at OR Tambo International Airport (ORTIA) in Johannesburg will be completed by mid-August 2009. Two other properties will follow later in the year and more before the 2010 FIFA World Cup. Formula 1 is present in Johannesburg, Pretoria, Witbank, Nelspruit, Richards Bay, Durban, Port Elizabeth, Cape Town, Beaufort West, Bloemfontein and Kimberley.

Formula 1, also known as Etap Hotel in Europe, is an Accor budget brand operating worldwide. All Formula 1 hotels offer customers the best in low-cost hotels with well-designed rooms for one, two, or three people, wireless connectivity available in all bedrooms and public areas, round-the-clock room access and an all-you-can-eat breakfast. Located near major roads and airports – and increasingly in cities – the hotels deliver highly competitive value for money.

With nearly 400 hotels worldwide, Formula 1 is pursuing its international expansion strategy. ■

Advertorial

WIN a two-night stay at the newly

renovated Formula 1 Hotel OR Tambo

The Hotel Formula 1 Group, in conjunction with BTN, is offering a prize for two nights for two people, including breakfast, at the hotel at ORTIA once renovations are completed.

Question: What is the trademark of the new concept design also known as?

To enter please e-mail your answer to kimcochrane@telkomsa.net including your name, company, position and contact details before August 7. Please note that only one entry per person will be accepted.

Terms and conditions: It is taken that the entrants agree to abide by the rules, which are: the prize is not transferable and may not be exchanged for cash.

Staff members of Now Media, the host company or organisation sponsoring the prize, their advertising and public relations agencies, their immediate families, and travel agents may not enter.

Tel: +27 (0)11 807 0750 Email: Formula1.RSA@accor.com Website: www.hotelformula1.co.za 20 JULY 2009 • BUSINESS TRAVEL NOW

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