Business Travel Now

NOW managing your travel spend better

A pillar of strength Ernst & Young takes back ownership of domestic travel

MEET the TravelWorks Travel Manager of the Year!

■ The Snakes & Ladders game of overrides ■ Reporting tools on the radar ■ Airline taxes – the real story ■ How to maximise your travel money and insurance spend

May 2009

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CONTENTS

The disappearing act of the kickback

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LTHOUGH override commissions have been described recently as a mere shadow of their former selves, they remain a contentious issue worthy of debate, particularly since they bring to the fore issues of trust between supplier, TMC and corporate.

Following the latest override discussions between SAA and TMCs, the airline will not be paying additional revenue to TMCs on business TMCs fulfill that is already remunerated to the end user via a corporate agreement.

But the travel trade will still earn an override on business generated through support of SAA for transactions that don’t fall within a corporate agreement – i.e. non-qualifying corporate business and leisure. SAA has also upped the qualifying criteria for engaging in corporate agreements.

In response, independent business travel consultant, Digby Johnson (TravelWorks owner) – one of the panellists in our Power Panel on this topic – has said it will be a careless travel buyer who passively accepts a huge adjustment in TMC fees to compensate for this loss in income. Other panellists agree that travel managers will probably have to re-evaluate their travel fulfillment requirements in light of this development.

The topic of overrides, or kickbacks, also made a guest appearance in a magic show at the recent TravelWorks awards evening in Cape Town (see page 2) where the magician played on the concept of kickbacks appearing where you least expect them, and then disappearing as quickly.

The main reason for the event, however, once everyone was done laughing at the appropriateness of The Travel Circus, was to honour those whom Johnson believed had manifested excellence in the business travel arena over the past year and as such, Elizma Mouton from Metropolitan Health Group was named Travel Manager of the Year, among other winners.

Speaking of corporates making a difference in the management of travel, in this issue we profile Ernst & Young who took ownership of their domestic travel spend – a step that wouldn’t have been possible without excellent supplier relationships, and as they say, a phenomenal requisition system in addition to other contributing factors.

For corporations looking for technology solutions, we also feature reporting tools, which are valuable measurement instruments for companies hoping to affect savings on travel costs.

Furthermore, we bring you advice on travel money and insurance (not something you can ignore in this day and age, particularly now with the recent outbreaks of what they call Swine Flu, a horrible name!), and for those booking travel to Angola, Natalia Thomson’s feature based on her recent visit to the country is well worth a read.

We hope you enjoy the issue and would appreciate any feedback on ideas for articles you’d like to see featured, or any questions you need answered, in the publication or on our website, www.btnow.co.za.

Congratulations to everyone who’s making a difference in their industry!

All the best. ■ kim cochrane

COVER STORY The trend of corporates taking control of their own travel requirements, particularly domestic travel, is gaining momentum. The idea of being totally in control of your travel portfolio is appealing, but is it practical?

We learn more about Ernst & Young’s recent initiative. Cover image by Tijana Huysamen.

News

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• MHG’s Elizma Mouton wins Travel Manager of the Year • Uniglobe Travel hosts first Travel Coordinators Workshop of 2009 • One&Only Cape Town opens in style

Africa Alert

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Travelling around Rwanda

Insight

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Air charges and taxes – the real story by AASA’s Chris Zweigenthal

How To

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How to decide if a TMC in-house is the way to go

Profile

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Taking control of domestic travel – Ernst & Young’s inhouse project

Power Panel

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Snakes and Ladders – and the debate on overrides

Destinations

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Luanda embarks on aggressive reconstruction campaign

On the Radar

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• Travel insurance – a necessity in today’s world • Forex – friend or foe?

Deal Detective

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Mauritius, Europe, Kenya or Hong Kong – Travelinfo brings you the latest specials

On the Radar

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Reconciling reporting tools – the must-haves and the issues around them

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.

PUBLISHER David Marsh MANAGING EDITOR Natalia Thomson CONSULTING EDITOR Kim Cochrane CONTRIBUTORS Linda van der Pol, Max Marx, Chana Viljoen, 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

May 2009 • BUSINESS TRAVEL NOW

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NEWS

Roll up, roll up!

MHG wins Travel Manager of the Year Award

By Kim Cochrane Photographs: Tijana Huysamen

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URING a recent evening of intrigue and magic themed “The Travel Circus”, Elizma Mouton from Metropolitan Health Group (MHG) was announced as the TravelWorks Travel Manager of the Year 2008. She takes over from the previous year’s winner and first recipient of the award, Jenny Poate, procurement spend manager for Metropolitan Head Office in Cape Town.

According to Digby Johnson, TravelWorks owner and md, Mouton won because she demonstrated the aptitude and attitude necessary to stay ahead in a challenging industry and critical economy.

“She has an alert financial mind, is passionate and articulate and above all innovative. Although young and new to the industry, during 2008 she took control of her company’s travel budget and enhanced the entire MHG travel spend by designing, developing and implementing an electronic control system for travel management – a work-flow system that really works!”

He added that during the year, Mouton had stood her ground, changed the way the company procured travel, managed her portfolio with a fine-tooth comb and saved a lot of money just by “batting clever”.

Johnson launched his annual achievement awards to honour those who manifest excellence within the business travel arena and to support his aim of striving towards the harmonious balance required between supplier, corporate and travel agent when maintaining a well-managed travel portfolio.

This year, TravelWorks hosted 73 guests at the Protea Hotel Victoria Junction in Cape Town. At the event were a number of corporate travel buyers who collectively manage R750 million worth of travel spend, in addition to representatives from the travel industry and trade.

Elizma Mouton and Digby Johnson.

‘Rookie of the Year’ was awarded to Lizelle Potgieter from the Council for Scientific and Industrial Research/CSIR who is pictured here with the magician for the evening. Last year this award went to Old Mutual’s Somaya Parker. Recipients of this award, although new to the business travel game, have shown immense growth, insight and good judgement over the year in dealings with travel suppliers as well as in their interactions with difficult travellers and situations.

This award-winner shows excellent potential to become an exceptional travel manager, says Johnson.

Ebrahim Asmal was up until recently the procurement director at Engen Petroleum Limited and is now heading up procurement at Santam.

He spoke briefly at the event, applauding Johnson for his success in creating value for travel procurement professionals.

Supplier awards ‘Compadre of the Year’ went to Ilse Esterhuyse, ex-Safmarine travel manager (left), pictured here with Digby Johnson and Bernard Seymour Hall (Safmarine country information systems and procurement manager).

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MAY 2009 • BUSINESS TRAVEL NOW

Supplier of the Year: Protea Hotels Shit-Stirrer of the Year: Manus de Vos (Travel With Flair) New: Champion Consultant of the Year: Natasha Wolfaardt (Metropolitan – Amex) New: Brand Ambassador of the Year “for when you urgently need someone to solve a problem”: Adele Dryer (1time).

NEWS

Uniglobe Travel simplifies the lives of its travel buyer clients

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NIGLOBE Travel Sub-Saharan Africa recently hosted its first Travel Coordinators Workshop (TCW) of 2009 at The Grace in Rosebank, with 100 participants attending the Friday afternoon session.

In his welcome address, Mike Gray, the group’s regional president and ceo, spoke about Uniglobe Essential Access, a corporate online travel booking and management tool that was now available to South African corporates to integrate and consolidate important travel management aspects such as travel policy compliance, cost savings and streamlined processes.

The workshop, now in its third year, aims to be a fun, interactive session to provide travel coordinators and buyers with the systems, tools and product knowledge they need to make more informed decisions about their company’s travel requirements.

The next workshop is scheduled for mid-July 2009.

For more information, visit www.thetravelcircle.co.za.

Peermont’s Cathy Shabalala and Beryl Cain.

Front: The Department of Communications’ Regina King (winner of the day’s big travel prize), Celeste van Staden and Jullecsia Saul. Back: Uniglobe Sunshine Travel’s Sebana Maswanganye and Pinky Nyamane.

Uniglobe Travel Sub-Saharan Africa’s Nikki Gray (marketing and events coordinator) and Mike Gray (regional president and ceo).

Yolanda Williams (Delta Air Lines), Lauren Milne (Three Cities) and Michele van Rensburg (U-Bag).

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MAY 2009 • BUSINESS TRAVEL NOW

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NEWS

One&Only Cape Town opens in style

By Hilka Birns A SINGING diva on a yacht, a male choir seemingly suspended over water, nymph-like water gymnasts, a thumping drum beat and a flame-lit entrance marked the inimitable return of South Africa’s “sun-king”, Sol Kerzner, as he opened his flagship R450m One &Only Cape Town recently.

The 131 rooms and suites resort sits in the elbow of the V&A Marina’s residential area and incorporates Marina Rise, a crescent-shaped, seven-storey hotel and two private islands. One island houses 40 villa-style suites selling for up to R25 900 a night and the other a spa & fitness centre with 11 treatment rooms and a yoga pavilion. An open-air restaurant and pool complete the picture. The islands are connected to Marina Rise by bridges for guests and underground tunnels for staff.

An enormous glass chandelier especially shipped from the Czech Republic and 8m high glass windows offering views of Table Mountain dominate the Vista Bar at the heart of the hotel. Alongside are two world-famous restaurants: “Maze”, by UK celebrity chef Gordon Ramsay and “Nobu” of Japanese master chef Nobuyuki Matsuhisa. Kerzner’s daughter Chantal owns the in-house designer boutique and a Goodman art gallery is located on the mezzanine floor.

Marina Rise’s 91 rooms and suites have

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expansive glass doors and private balconies.

The complex also houses the 250m² presidential suite (up to R50 500 a night).

Services include 24-hour personal butlers, daily fresh fruit and snacks, twice-daily maid service, a pillow selection menu and an aromatherapy turndown menu. In-room amenities include multimedia entertainment, satellite flat-screen TVs, surround sound audio systems, DVD/CD players, business services (multi-adaptor, fax/computer hook-ups, three phones, two-line communication system), MP3 docking stations and complimentary WiFi throughout the resort.

Facilities for functions include a dividable ballroom for up to 200 guests, two boardrooms, a business centre and a dedicated consultant to assist with functions.

An enormous glass chandelier especially shipped from the Czech Republic and 8m high glass windows offering views of Table Mountain dominate the Vista Bar.

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New all-suites hotel scheduled for central Cape Town A NEW five-star all-suite hotel, Pepper Club & Spa, managed by Gatsby International Hotels & Resorts, is set to open its doors in January 2010 in central Cape Town.

The new 22-storey hotel tower will take up an entire block at the corners of Long and Pepper streets in the city’s most popular central café society district.

According to Gatsby director, Brandon Lourens, it will be first downtown boutique hotel with luxury apartments aimed at the upper-end international and domestic market.

Accommodation will comprise 76 deluxe suites, 56 superior deluxe suites, 38 grand one-bedroom suites and 14 grand two-bedroom suites. There will be five venues accommodating 20 to 120 people for conferences, incentives, weddings and executive meetings.

In addition to a small shopping mall on the ground floor, other facilities will include a concierge service, fitness centre, pool and sun deck, private movie theatre, wellness spa and secure under-cover parking. Pepper Club’s guest courtesy fleet will include a Rolls Royce Phantom.

Africa Alert

Looking for some guidance and tips before sending your travellers to African countries? Vicqui Welton of Fulela Trade and Invest 80 offers some insights...

Around Rwanda HAVING just returned from my third exploratory trip to Kigali, Rwanda, with regard to setting up an office there, I am once again awestruck by this wonderful country as well as by the ease of travelling there and doing business.

The Republic of Rwanda is a small landlocked country in the Great Lakes region of east-central Africa, bordered

by Uganda, Burundi, the DRC and Tanzania. Home to about ten million people, Rwanda strangely, as one doesn’t feel it, supports the densest population in Africa.

It is a most beautiful country of fertile and hilly terrain and aptly bears the title “Land of a Thousand Hills�, in French, Pays des Mille Collines.

Vicqui Welton Of course we all know Rwanda on account of its 1994 genocide, in which between 800 000 and one million people were killed. In fact today in Kigali there are a number of memorials and genocide sites.

Rwanda has an international airport (currently there is a new one being built), which serves one domestic and several international destinations. Kenya Airways offers good daily flights to Kigali. South African passport holders don’t require visas; immigration and customs formalities are simple, quick and efficient.

Kigali’s roads are reasonably good and getting around is not a problem. It is exceptionally safe and often in the evenings you see many people taking a walk.

Although a few new hotels have opened, there is still generally a shortage of rooms, resulting in expensive rates. Expect to pay anything from about US$100 to $300. My personal recommendation with regard to hotels is the Serena, the Novotel and the Hotel de Milles Collines (currently being renovated) or there are a few good smaller hotels and guest houses.

My two favourite passtimes are of course seeing the gorillas (you can do this in a day, but try to stay one night) and visiting the lovely Bourbon Coffee Shop at the Union Trade Centre where one can sit on the veranda and watch Kigali life go by whilst enjoying a superb cup of Rwandan coffee.

Massive interest in Angola THE massive shortage of hotel rooms in Luanda is about to be relieved with the construction of 16 new hotels in Angola’s capital city underway.

According to the Hotel and Tourism Ministry national infrastructure director, Afonso Vita, this will bring an additional 60% capacity and 4 000 beds on stream by the African Cup of Nations event in 2010. This will include two five-star, two four-star and several three-star properties.

Under construction currently is Endiama’s Hotel Diamante, the Sana Luanda Royal Hotel, the Radisson Blu Hotel Luanda, Hotel VIP Grand Luanda and a Protea hotel close to the Luanda International Airport.

The 387-room Intercontinental Casino Hotel and 180-room TrĂŞs Torres property should open by the end of 2009, while the 370-room Talatona Convention Hotel, along with the Talatona Convention Centre are expected to be completed by July.

By 2010, an additional 30 new hotels will open throughout the country, including motels, apartment hotels and hotels.

Meanwhile, EMIRATES has announced it will launch flights to Angola on August 2, making it the carrier’s 17th African destination.

The flights will operate on Tuesdays, Thursdays and Sundays using an A330-200 in a three-class configuration with 237 seats.

The flights will depart Dubai at 10h50, arriving in Angola at 15h50. The return flights will depart Luanda at 18h00, arriving in Dubai at 05h00 the following day.

Tim Clark, the airline’s president, said: “This new Luanda flight provides enormous potential to develop air travel into Angola, alongside the assistance we can provide for international trade through Emirates SkyCargo. In the past year, we’ve seen strong growth of 17% in Africa. Now, with Luanda starting in August and Durban starting later in the year, this is going to be another exciting year in this largely untapped continent.� *See more on Angola on pages 14 & 15.

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MAY 2009 • BUSINESS TRAVEL NOW

5

INSIGHT

When airfares are advertised, passengers must be aware of the total fare payable (including taxes and charges) and measures must be in place to facilitate this transparency.

Chris Zweigenthal, chief executive of the Airlines Association of Southern Africa (AASA), helps unpack the various taxes and charges incurred by passengers departing from airports in SA.

Air charges and taxes – the real story

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IRLINE and airport charges and taxes have been the subject of much debate and confusion over the past years.

Airports have been accused of imposing exorbitant costs on airlines and passengers, while airlines have been blamed for hiding costs in charges in tax boxes on tickets. And then, what about Government taxes?

Let’s unpack the various charges incurred by passengers departing from airports in SA and see where they fit in.

All charges and taxes, excluding the airfare, are included in what is called a ‘tax box’.

These tax boxes were included on tickets by the International Air Transport Association (IATA) as a facility to enable the incorporation of State taxes and other charges not directly included in the fare. But only the State can impose taxes on passengers and airlines.

These taxes are the 14% VAT and the Air Passenger Tax (APT), which is currently R120 and applied to passengers on regional and international flights departing from SA. The rest of the items in the tax boxes are charges, which are split into several categories. It must be noted that with the establishment of Airports Company South Africa (Acsa) in 1993, the ‘user pays’ principle was introduced to ensure recovery of costs incurred for infrastructure and service provision, with no subsidy by the State. The ‘user’ is effectively the passenger and airlines.

The first category of charge is included in the ZA tax box. This includes the following items that contribute to the total charge depending on the passenger’s travel itinerary.

The first item is the Acsa Passenger Service Charge (PSC), a charge regulated by the Economic Regulator for Acsa appointed by the Department of Transport. These charges are determined after consultation and negotiation by airline industry bodies (including AASA) with Acsa on its five-year Permission (Business Plan) taking account of capital and operational expenditure programmes with a permissible return. These charges relate to the costs incurred by Acsa with respect to passenger terminal services. The charge per passenger is R49 (domestic), R102 (regional) and R135 (international). All charges quoted are as at May 1, 2009. All other Acsa costs are included in the landing and parking charges incurred by airlines and these are recovered in the airfare.

The second item in the ZA tax box is a charge raised by Aviation Coordination

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May 2009 • BUSINESS TRAVEL NOW

Services, a non-profit company owned by the airlines through the airline associations with the mandate to provide certain security services i.e. 100% Hold Baggage Screening (R11 per passenger), Baggage Reconciliation (R3 per passenger) and the Common Use services at certain Acsa airports (R7 per passenger). This route was taken to avoid having each airline provide individual services for these items and a charge per item is only made at airports where the service is provided.

The second category is the EV tax box, which contains the SA Civil Aviation Safety Charge. This is a charge of R11 recovered from every passenger departing a SA airport on a scheduled airline flight for the provision of services to ensure the CAA complies with its oversight and licensing mandate on behalf of SA in terms of the International Civil Aviation Organization (ICAO) requirements.

The third category includes additional charges in the YR tax box raised by airlines not included in the fare. These are generally extraordinary charges that the airline at its discretion believes it cannot include in the fare quoted and that will be added together with the fare, taxes and other charges to determine the final amount payable by the passenger.

Each airline will determine what element will be included and what amount they will charge. There is no discussion on these charges between airlines. Currently the only charge in this category being included on airline tickets is extraordinary insurance charges due to high premiums charged to airlines to account for aviation security measures and fuel levy charges.

Chris Zweigenthal

Taking the above into consideration, the only charges that are the same for all airlines operating the same sector are APT, Acsa PSC, ACS security charge and the CAA charge. All other airline charges can vary, including the VAT due to different fare levels.

It’s imperative that when fares are advertised, passengers are aware of the total fare payable (i.e. including all taxes and charges). There must not be any misunderstanding on this and airlines, travel agents and all other parties are encouraged to ensure that such measures are in place for promotional and general information on flights and the total fares payable. ■

About AASA THE Airlines Association of Southern Africa (AASA) is an organisation formed to represent the mutual interests and assist in improving the sustainability of its members. This includes policy, planning, operational, regulatory and financial issues affecting the bottom line of airlines relating to airports, airspace, civil aviation, safety and security of airline operations.

Membership is open to all airlines based in countries south of the equator, including the Indian Ocean islands. Currently, there are 15 member airlines from SA and other SADC countries. In addition, associate membership is open to organisations, which are partners to airlines in the aviation industry. There are currently 23 associate members including Acsa, ATNS, SAWS, oil companies, aircraft manufacturers, engine manufacturers and ramp-handling companies.

AASA is a consultative member on the SADC Civil Aviation Committee and is represented on 15 standing committees and boards involving both public and private stakeholders. AASA also chairs and is a joint shareholder with the Board of Airline Representatives of South Africa in Aviation Coordination Services Limited (ACS).

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LTHOUGH Woolworths’ decision to opt for an in-house was taken some time ago, it has chosen to continue along this path due to high travel volumes as well as the convenience and control this route affords, says Belinda West, central procurement manager.

She says when going the in-house route, one needs to implement an open-book system. “It’s also important that there’s an understanding of the required level of infrastructure needed to support your travel volume and complexity. Ensure you are comfortable with the level of staff experience that will be provided, given the impact of this on the cost structure and service delivery.”

Whether to use an in-house or keep the TMC off-site largely depends on the company culture, number of travel transactions and travel complexity, says Carel Aucamp, British American Tobacco South Africa supply chain project manager. “We opted for an in-house due to the spirit of our TMC fitting our culture like a glove.”

Sandy Badal, group travel head for Anglo American, says the decision to launch an in-house TMC was taken six years ago out of the need to create a shared service platform for the entire group. “Due to the size of the group, it became essential that we begin to actively manage Anglo American’s travel,” says Badal.

Over the years, Badal says many lessons have been learnt, including the importance of full buy-in from the top, as well as the importance of consistency. “We discovered very early on that we needed to set the stage right at the beginning and never deviate from protocol – this is more efficient than altering processes as you go along.”

Michelle Smit, senior travel coordinator for Barrick Africa, says the company opted to continue using external travel agents, but felt there needed to be internal involvement.

“We receive the travel requests and send them through to the travel agent or service provider. We feel that we are the personal link between the two and this allows us to ensure the corporate’s best interests are looked after and the travel policy is adhered to, but at the same time we don’t have the pressure of issuing tickets and invoicing.”

Ernst & Young runs its own travel desk to process domestic bookings, while all regional and international travel is managed by an outsourced TMC. Felicity Meyer, travel manager: finance for Ernst & Young, says the group decided on this approach to reduce cost, increase efficiency and take ownership of the travel process.

Graham Tate, divisional executive: PAFM for the Development Bank of South Africa, says that although the company’s decision to opt for the in-house TMC was taken many years ago, it is still a very relevant one today, given the cost of licensing your own operation.

By Sue Lewitton

“It’s important that there’s an understanding of the required level of infrastructure needed to support your travel volume and complexity.”

– Belinda West “Running and managing your own travel agency is also fraught with operational problems such as staffing, systems and processes. As this is not our core business, it makes better sense operationally and financially to outsource.”

Tate adds that as the nature of the company’s travel as well as its business requirements change, the TMC is better able to adjust.

“They’ve seen the issues before elsewhere and can advise on how to adjust policies and what to be aware of.”

Points to ponder when opting for an in-house TMC • Keep an open-book system with regard to costs.

• Consider your company’s level of travel volume and complexity and then decide on the necessary infrastructural as well as staff requirements.

• Change management must be first and upfront.

• Full buy-in is required from top levels of management to avoid fragmentation.

• Set the stage right at the beginning and never deviate from this, as consistency is key.

• Be aware of your volumes and costs; there may come a critical point when it makes sense to outsource.

• It is all about culture! The TMC’s vision should be the same as your company’s. ■

For more indepth solutions or discussion points visit www.btnow.co.za

business travel that works for YOU TOP LINE SOLUTIONS BOTTOM LINE BENEFITS

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“Running and managing your own travel agency is fraught with operational problems. As this is not our core business, it makes better sense operationally and financially to outsource.”

– Graham Tate

HOW TO

How to decide if a TMC in-house is the way to go

www.surecorporate.co.za • jimw@surecorporate.co.za May 2009 • BUSINESS TRAVEL NOW

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PROFILE

An inhouse project The trend of corporates taking control of their own travel requirements, particularly domestic travel, is gaining momentum. BTN interviews Ernst & Young’s recently appointed travel manager, Felicity Meyer, and procurement specialist, Niall Johnston, about the company’s new travel management model. By Kim Cochrane Tijana Huysamen

A tenacious travel trio. Ernst & Young’s Niall Johnston, Felicity Meyer and Margaret Bayford.

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HEN Ernst & Young’s (EY) contract with its TMC was up for renewal in 2007, the firm released a request for information (RFI) and not finding a “perfect fit”, decided to take ownership and appointed a team to assist in sourcing the right solution for the company, says Felicity Meyer, who took up the position of travel manager in December 2008.

Niall Johnston, EY procurement specialist, adds that EY’s aim was to maximise value and minimise cost. “With support from top management, we wanted more control of the travel process and spend, particularly in an economic environment like today where every cent counts. Our biggest learning curve has been taking responsibility for the portfolio.”

Meyer, who is also operations director for the Institute of Travel Management Southern Africa (ITMSA), is adamant that if more companies adopt this strategy and implement an inhouse travel solution, then travel managers must take increased responsibility for the budget. “Would you give your own money to a third party to go shopping for you, every day for a year? We really wanted to understand the nuts and bolts of the process because travel is such an intrinsic part of our business. We needed to find solution that would fully meet our requirements.”

How the travel management model works

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now is that a fully owned, integrated EY travel team (under management of the Finance division) is responsible for all domestic travel – 70% of the total travel spend of around R30m – and according to Meyer, the team is turning around domestic bookings in 40 minutes, from the time of request to the issuing of documents (excluding changes).

“In today’s economic environment, we’ve had to implement guidelines about which suppliers we use in terms of airlines, car hire and accommodation.

Not everyone may like the choices we offer, but we do try to satisfy all requirements.”

“We employed high-service travel consultants comfortable in the internet environment, but regional and international

travel is still booked through Seekers Travel in Fourways. Seekers Travel has had an in-house at EY since 2003, processing all travel, but in March 2008 they moved off site.”

Johnston is quick to add, however, that all decisions about regional and international travel are made by the travel manager, not the TMC, so EY retains its control. “They offer the alternatives; we select.”

Meyer interjects: “In today’s economic environment, we’ve had to implement guidelines about which suppliers we use in terms of airlines, car hire and accommodation.

Not everyone may like the choices we offer, but we do try to satisfy all requirements.”

She adds that the EY formula is “very mindful” of the distribution costs incurred by suppliers, especially GDS costs. “We did away with the three-quote model in 2008 for domestic travel as part of the revamped travel policy (it was reworked in January 2008 and implemented after consultation with the firm in July 2008) and moved as much business as possible onto the internet. The decision about where to book – i.e.

GDS or internet – considers (and will continue to) all aspects of the booking, including GDS costs. The model is sensitive to the actual cost of doing business both for EY and our suppliers, ensuring a profitable account for our partners and a cost-effective solution for EY.”

PROFILE

Ernst & Young gains improved understanding of travel requirements Centre of success has been a phenomenal automated requisition system, says Felicity Meyer.

According to her, the most critical component of a travel management programme is open discussion and an environment of trust.

“It’s about relationships and outcomes. It’s about getting everyone involved and taking responsibility for their part in the process. You can’t have a relationship with someone at arm’s length. If you don’t have that partnership, change suppliers until you find it. Find someone who understands and accommodates you.”

Since the new domestic travel processes have been in place, Meyer says EY has a clearly defined pool of suppliers with whom they meet monthly and who now understand where the company wishes to go with its travel portfolio.

“We also have a complete understanding of our travel requirements, which we never had before.”

have an IATA number, so this is where key account managers and supplier meetings became so critical. EY doesn’t consider it necessary to apply for an IATA licence because we feel the costs and risks outweigh the benefits of being totally self sufficient in terms of our travel.”

Another unforeseen event, says Meyer, was that the implementation phase was cut in half by the head of the project team so they went live in three months as opposed to six, which was “absolutely terrifying”.

“But we did it! What helped tremendously was a project charter and risk log that we managed daily. Every day we sat down with the team and went through our progress, step by step. What could happen. What was Plan B. It was very thorough and it took a lot of resources, but it was well worth it.”

Factors in EY’s favour

ben meyer

In addition to a “phenomenal” self-developed requisition system and key supplier contacts, also in EY’s favour during the process was “awesome support” from Seekers Travel.

Meyer says direct access to management and decision-makers – Johnston and Margaret Bayford, EY’s senior financial manager (Meyer reports in to her) – also helped by enabling the travel project team to adapt quickly, resiliently and flexibly to changing environments, including special projects.

An illustration of this, says Meyer, is when EY was landed late last year with a big project from a client. “Within 72 hours, 350 passengers had to be moved into the least-known and smallest towns in the country. Three of us – two travel secretaries and myself – booked about R3 million worth of travel over two weeks (3 500 bed nights and 1 500 car-rental days were booked in 24 hours). Our TMC couldn’t handle it – their quality checks and procedures didn’t allow them the luxury of turning the project around within the time we needed. The response from our suppliers was amazing; we put them under pressure, but they responded when we told them what was happening and what we needed from them. We were phoning them at midnight and they were finding us 4x4s in the Transkei.”

In this situation, what does help, is an ability to ask “stupid questions without blushing and have a rhino skin”, she says.

EY moved onto Amadeus from April 1 this year. “The GDS is just one of the tools we use now to ensure optimum pricing, efficient turn-around time as well as our strong focus on risk management and Duty of Care.”

Here Felicity Meyer combines her passions - her love of flying with her pilot husband Ben and their dogs, Skip and Wylie.

Unforeseen complications One of the biggest problems confronting TMCs today, believes Meyer, is poor morale in in-houses in addition to a general lack of passion and enthusiasm across the industry. “We believed by employing our own EY people, they’d have a sense of belonging and a feeling of collective accountability.”

While the EY project has seen successes to date – savings into the millions of rands, according to Johnston – it has not been without its challenges, which resulted in the team opting to book on the internet and directly with suppliers instead of through a self-booking tool.

“We book our flights, hotels, rental vehicles and transfers online.

Comair also gave us a dedicated consultant in its corporate department for which we pay a fee – we have access 24 hours.”

Enforcing its travel policy, EY managed to move 30% (sometimes close on 50%) of its local air spend to low-cost carriers (LCCs), a major contributing factor – in addition to taking away the choice of airline from the TMC – to the bottom-line savings achieved so far, says Johnston.

But another complication (and a challenge for most companies) due in part to the increased number of LCC bookings were the changes and last-minute bookings. “We completely underestimated these so now we’re trying to decide if they are valid or through lack of discipline.”

She adds: “We also had push-back from bookers and a few suppliers not understanding what EY was trying to do with its travel. For example, some suppliers wouldn’t deal with us as a non-TMC, or because we didn’t

It’s all in the requisition system THE centre of success for the EY travel project, says Meyer, has been its automated integrated requisition system that is used to manage all travel requests. “I’ve never seen one come close to what EY developed according to the group’s unique requirements.

It’s been such a support structure and used in ways I never thought it could work. Requisition is a corporate’s responsibility, as TMCs can’t create a system and make it fit a client.”

How it works is that a booker raises a requisition with travel and passenger details that feed directly out of EY’s HR system so the information (passenger names, passport numbers, contact details) is always updated and correct, which is important because the MIR is matched back to it. It also incorporates all the codes for different costs, business units and projects.

What happens then is that the requisition is queued onto one main queue, which is managed by the travel team leader.

“She then distributes the requisition to the consultant, either internally or to our Seekers Travel consultant, who works on the same system on an EY laptop.”

Meyer says the system is secure because it is well controlled by access levels so users see only what they need to see.

The travel consultant books the request and populates the requisition with the travel details and costs, and submits it directly to the relevant approver (no ticket can be issued without approval).

MAY 2009 • BUSINESS TRAVEL NOW

9

PROFILE

You need a team who is passionate and resilient

One of the biggest problems facing the travel industry today is poor morale and a general lack of enthusiasm, advises Meyer.

Approvers are responsible for confirming trip validity, the business reason for the trip, carrier selection, policy compliance and that the correct charge codes have been allocated.

“Once the requisition is approved, it comes back to the relevant consultant’s queue and is issued. If it’s not approved within two hours, a booker can pick it up and send it to a ‘super’ approver of which three are always available.”

All invoicing details are then captured by the travel finance team within 72 hours of the completion of the trip. “Because 80% of our spend is costed out to clients, the process needs to turn around very quickly. The invoicing details then upload into our finance system. Each requisition has its own number, which is the purchase order.”

The requisition system keeps a history of the bookings and is a consolidated platform for all travel ensuring that, although the booking mechanism is fragmented, the travel database is completely centralised, she concludes.

Some lessons learned:

Photographs: Tijana Huysamen

• “I believe with a dedicated travel manager, your travel budget becomes your most controllable expense behind salaries.

• Education – for bookers, travellers and clients – is key. Why travel is so populated by myths is beyond me – tell them the facts, not a wrapped-up pretty picture of travel.

• Buy in and support of top management and travel suppliers is essential – they must know what you’re trying to achieve with your travel portfolio.

• After-hours do happen. A contact at the end of the phone must be available. It is a mission to carry a phone and laptop after hours, but you can’t always have your own way!

• You need a team who is passionate and resilient.

• Patience – this model takes time to get a grip.

• EY is the first SA company to enrol in the ITM (UK & Ireland) programme called Icarus, which seeks to drive environmental awareness change through the recognition of business travel and meetings management environmental activity across buyer and supplier communities. We want to focus on reducing our carbon footprint over the next two years and part of that is doing away with paper confirmations. This has seen us driving SMS confirmations, although travellers still want those paper vouchers!” – Felicity Meyer

Fact file The travel team. From left. Front row: Simangele Langa and Pennsylvania Mafate. Second row: Sibongile Ledwaba and Naomi Kaleni. Third row: Khanyisa Mtiya and Nonhlanhla Rabolele. Fourth row: Nomthandazo Kobe and Winnie Qongo. Last row: Sam Kaphuka and Buhle Mbuyisa.

• Number of travellers: 300 (10% of whom travel weekly).

• Destinations: Domestically – mainly to Johannesburg from Durban, Cape Town and most of the major towns. Internationally – mainly London and Europe.

Significant travel into Africa.

• Suppliers: BA/Comair, SAA, LCCs (1time and kulula.com), Protea Hotels, B&Bs and guesthouses, Hertz, Imperial-Europcar. For transfers: Professional Passenger Services and Dreamscapes Transfers & Tours. Payment: Diners Club and MasterCard.

• Recommended website for alternative accommodation (guest houses, lodges and B&Bs): www.travelbook.co.za. ■

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10 May 2009 • BUSINESS TRAVEL NOW

4/9/09 10:11:14 AM

POWER PANEL

Snakes and Ladders ‘One man’s loss is another man’s gain’ is a well-known idiom that can be used to describe the board game, Snakes and Ladders. The phraseology can also be applied to the more serious topic of override commissions, which as far as debates go, is one of the more popular (read heated) discussion points in the travel industry between airlines, TMCs and their corporate clients. So we put the topic to our panellists.... By Kim Cochrane

O

VERRIDE or incremental commissions – call them what you like – and the cutting thereof, never fail to elicit a strong response from the parties involved, whether it be a passionate outcry about the underhandedness – or justifiable necessity – of it all, or a “no comment”.

Nevertheless, it is a good button to press for a debate and our three panellists have rolled the dice and let them fall as they may for this month’s Power Panel.

SAA recently concluded its 2009/10 override commission discussions with the large TMCs and for possibly the first time in a long time it appears SAA will not pay any additional revenue to TMCs, on business the TMCs fulfill, which is already remunerated to the end users via their respective corporate agreements.

TravelWorks owner and md, Digby Johnson, speaking on behalf of his corporate travel procurement clients, says his understanding of the new SAA agreement with TMCs is that the override previously enjoyed by the travel agent groupings will be removed for any business transacted with companies that have a direct agreement with SAA, effective April 2009.

“The TMC will still earn an override on business generated through support of SAA for transactions that do not fall within a corporate

agreement – i.e. non-qualifying corporate business and leisure.”

Johnson says in the past, when SAA cut commission to agents, other carriers followed after a window period of about six months.

“Thus it’s reasonable to assume other airlines will probably mirror SAA by cutting overrides in the domestic market by as early as September 2009.”

“And the real conversation stopper: if overrides are destined to disappear, will this mean corporate clients will see an increase in pricing from the TMC, but a reduction in pricing from the supplier? It would be disingenuous to contemplate any other scenario.” – Digby Johnson

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May 2009 • BUSINESS TRAVEL NOW

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POWER PANEL

Snakes and Ladders

Now is the perfect time for travel managers to re-evaluate their travel fulfillment requirements.

become crucial to consider when dealing with the issue of commission cuts. Shaving commissions is not a new concept, with markets such as the US and Europe moving to a 0% base. SAA has for a number of years been reducing commissions, most importantly to comply with competition law.”

What about the TMCs?

What SAA says….

“SAA has taken advantage of the agreements it has in place with larger corporate clients and is working on optimising these relationships to avoid unnecessary incentive payments to TMCs,” says Robyn Chalmers, head of SAA Group Corporate Affairs. “In a sense, we’re cutting out the middleman and dealing directly with our own clients.

But this does not mean we’re neglecting our highly beneficial relationship with TMCs. They are absolutely critical to the success of our business. We have ‘given back’ to the retailer as a result of increasing the criteria for engaging in corporate agreements. This means SAA will have agreements with larger corporates, leaving TMCs to provide a service to medium-sized companies. SAA will also continue to offer commissions to TMCs when they are responsible for directly influencing a sale that we would not necessarily have made, such as a large corporate client with whom SAA does not have a direct agreement. These also include leisure sales, medium corporate clients and tours.”

It’s important to note, says Chalmers, that this development is an international trend and not isolated to South Africa, or its national carrier.

“Just as airlines around the world have responded to the economic downturn by trimming costs to survive, companies are becoming more savvy with travel spend.

Clients are looking for the best price when travelling and are determined to find the most cost-effective methods to achieve this. It’s this shift in the dynamic that has 12 May 2009 • BUSINESS TRAVEL NOW

Travel Counsellors director, Will Puk, emphasises that there’s always been an element of ‘double dipping’ avoidance, in that SAA did not remunerate TMCs when its corporate clients were using specially negotiated corporate fares, but that this was not significant in the overall scheme because in most cases, corporates were using normal rates.

“Now that SAA has so many agreements in place directly with corporates, it simply cannot afford to remunerate the TMC as well and this is the fundamental change to the override agreements this year. Also I believe the entry level for TMCs has risen to R20 million, meaning that the first R20m of business does not qualify for any override. I’m not sure what other airlines are up to, but they have far fewer corporate agreements in place.”

Chalmers adds: “It’s advisable that TMCs research the lessons learned by their international counterparts to determine how to reinvent their businesses and weather the storm. They should maximise operations and provide a value proposition that is more attractive so as to be profitable despite reduced commissions.”

Puk says now is the perfect time for travel managers to re-evaluate their travel fulfillment requirements. “So many companies opt for the big brand name TMCs, only to find they’re all much of a muchness.

It could be time for a change and looking at other models may be a good idea. Travel Counsellors is ideally placed, either in terms of our straight-forward model or the idea of a corporate employing its own Travel Counsellors and keeping 60% of its own fees. Now there’s a novelty!”

Do – not should – TMCs rely heavily on override commissions as a primary source of revenue?

A: “SAA’s commissions to TMCs are only one source of revenue.” Robyn Chalmers A: “If the TMCs didn’t rely on overrides, there’d be little opportunity for buying consortiums. Nor would we see the super groups buying market share for turnover, and franchise agreements would certainly lose their primary attraction. Overrides are volume driven. That the travel industry decided to keep all supplier overrides confidential and

hidden away from end users has served to create an atmosphere of distrust between stakeholders. TMCs who have relied on overrides are now faced with a predicament.

If the TMCs have not been open with their clients and declared the true magnitude of this override, they are going to find it difficult to justify a hefty fee increase. It will be a careless travel buyer who passively accepts a huge adjustment in fee structure. What is required by those procuring travel in today’s environment is comprehensive and up-todate knowledge of the many vagaries of this mercurial industry, as well as rigorous strategic procurement guidelines, so as to optimise travel spend and process.” Digby Johnson A: “Absolutely, these deals have been very lucrative in the past and it will be devastating to loose them.” Will Puk

“If corporates have not been savvy over the past few years with regard to the real cost of their travel spend, there’s a good chance they’re about to discover just how uncomfortable things can be.” - Digby Johnson

How is this trend playing out in the local arena?

Chalmers says SAA has already witnessed a shift, with a growing number of clients preferring to incorporate an inhouse travel manager or to book directly online in a bid to minimise and optimise travel spend.

“It’s important to find the cheapest fare, as well as value for money. SAA has been proactive in offering a value-add pricing structure combined with its premium product (including lounges), optimal schedule, reputation as a reliable carrier and its exceptional safety record.”

Adds Johnson: “Any cut in overrides will positively impact the airline’s financial accounts – the exact scope of the effect thereof is difficult to assess at this juncture, as so many operational issues at SAA are fraught with inconsistencies and double-speak.

We know SAA needs to recoup significant losses attributed to, inter alia, fuel hedging, recent strike action and questionable bonus pay-outs. The cutting of overrides is, in sum,

a futile, short-term approach to immediate cost-containment challenges.”

He continues that TMCs that have been operating business on the income return from overrides will need to adjust their business models. “Even if we assume a conservative override on turnover of 4%, this could equate to as much as 20% of the TMC’s actual income. The critical question now is how is the TMC going to recoup this loss of revenue? The obvious choice would be to adjust fees to the corporate, but if we factor in the current economic contraction and the adjustment required to combat inflation, the fee that would have to absorbed by the client would be untenable. Further, given that many small- to medium-sized corporates are seriously flirting with online bookings and self-help tools, any above-average increases in TMC fees could well precipitate these corporates breaking away from using the TMC’s services altogether.”

Johnson says what we’ve seen since SAA adopted the override cutting strategy is a frenetic clamber by TMCs to introduce corporate deals from other airlines to their clients.

“Many TMCs continue to hide the true magnitude of overrides from clients because generally overrides are considered to be the sole domain of the TMC, not least because it is the combined total of all sales that is being rewarded.” - Will Puk

“This is evidenced by a number of TMCs demanding that deals be signed by April 1 in order for the corporate to qualify for the deal. It’s a no-brainer that these TMCs are attempting to shift their business to airlines that still pay overrides.”

He says this contentious issue once again begs for a transparent debate regarding the ethics surrounding ‘confidential’ kickbacks and whether a travel consultant promotes what is best for the client, or best for the TMC. “Corporations will be affected. Firstly, the percentage upfront discount offered by SAA, albeit on a larger range of classes, is less than the return currently being received. The upfront discount benefit can easily be negated by poor compliance to cost-containment

Digby Johnson, TravelWorks founder and owner

policies. Several organisations utilise the rebate return to fund internal procurement projects, or simply to offset other expenses – either way, these rebates have made a healthy contribution to the department’s cost effectiveness. All indications are that this will no longer be the case.”

He says if corporates have not been savvy over the past few years with regard to the real cost of their travel spend, there’s a good chance they’re about to discover just how uncomfortable things can be.

Puk says the immediate effect of drastically less override income (which impacts the bottom line significantly) can only be counteracted by TMCs in two ways: cutting staff (particularly highly paid executives at the top) and a complete revision of service fees (where new calculations consider the loss of override income). This could have dire consequences for the corporate (if they want to stay with their existing TMC).

“When it comes to corporates, on the one hand they’re in the pound seat because SAA is open to corporate agreements, but if corporates insist on using a Big Name TMC, they’ll find their fees will rise dramatically in coming months. This is good news for smaller-niche TMCs who have never benefitted from SAA overrides and therefore their costs will not be affected.”

POWER PANEL

Robyn Chalmers, head of SAA Group Corporate Affairs

Will Puk, Travel Counsellors director

SAA would not have made.” Robyn Chalmers A: “No supplier worth its salt should need to reward a third party for promoting its wares. Unfortunately ‘additional payments’ are rife in the travel industry and a cesspool of kickbacks, overrides, backhanders and financial rewards has been created between suppliers and agents. It’s notable that regular business just doesn’t seem to flow to honest, ethical and transparent suppliers who don’t make these ‘additional payments’ to TMCs.” Digby Johnson A: “I think airlines are always more comfortable in rewarding TMCs for placing discretionary business with them. But this will normally come from small corporates not qualifying for overrides themselves or from leisure clients who are more flexible in their travel arrangements.” Will Puk

Who is the actual owner of the client’s decision as to which airline is used, especially on routes with significant competition?

A: “Increasing fees is the easiest, knee-jerk way to solve this problem. There are several buyers out there who will fall for this approach due to lack of knowledge and understanding. Another approach we’ve encountered lately is where the TMC introduces a dubious, partisan ‘TMC incentive model’ – corporate travel managers who are tempted by these one-way offers should seriously review their travel portfolio key performance deliverables before they commit.

These incentive models tend to be characterised with numerous flaws and rely far too heavily on input data from the TMC, thereby bestowing on themselves ownership of both ‘the wolf and the sheep’.” Digby Johnson A: “I’ve heard of plans from some of the large TMCs where they are hoping to introduce supplements of 3% and 4% (of the airfare) to corporates.” Will Puk

A: “Ultimately, the travel decision lies with the client/end user.” Robyn Chalmers A: “The client should always have the final say, but this decision is often dependant on the quote received from the TMC. If the TMC has promoted a preferred supplier, the client will be none the wiser. Bearing in mind that at face value, the pricing might appear to be more cost effective, yet the client would not know what benefit the TMC was receiving by promoting the chosen airline.

Increasingly, corporates look for alternatives on the internet. This again points to a lack of confidence in the client-TMC relationship.

It must be noted that the hard-working travel consultants are often instructed by management to promote certain suppliers, so as to maximise the override agreement.

This leaves them in a predicament where despite wanting to give the best service to their client, management instructs them otherwise!” Digby Johnson A: “It is always the client’s choice. TMCs will always offer comparative quotes, as it could be more economical to use the best fare on the day, which could be with another carrier.” Will Puk

Do airlines have to provide additional payments to TMCs for business which they also contract directly with the end user?

Next month…

Next month our panel will debate the topical issue of GDS costs and churning.

How will TMCs justify fee increases?

A: “As mentioned, SAA will provide incentives to TMCs who directly influence a sale with a client May 2009 • BUSINESS TRAVEL NOW

13

DESTINATIONS

Luanda, Angola A sea of cranes greets business travellers travelling to Luanda. Just seven years after the end of a bloody civil war, the city is embarking on an aggressive reconstruction campaign, as Natalia Thomson discovers on a recent visit...

Investors welcome

T

HE countdown to the African Cup of Nations 2010, hosted by Angola, is apparent everywhere in this bustling African city. The Angolan nation is fully behind this soccer event and so, it appears, are foreign investors who are pouring millions into the city’s reconstruction.

Within a few years, Luanda’s traditional landmarks of the Marginal (palm-lined avenue along the Bay of Luanda) and Fort of St Miguel will be flanked by high-rises, many of which are already well under construction.

Investment in new and improved road infrastructure should help to curb the shocking traffic congestion, arguably unrivalled elsewhere in Africa, while new office, hotel and residential buildings are springing up throughout the city. An additional 16 hotels are expected to open in Luanda by 2010.

The Angolan National Agency for Private Investment (ANIP), established to “facilitate and stimulate private sector investment in Angola”, lists 15 reasons for investing in Angola. Among these are the country’s vast oil reserves (some 800 000 barrels of oil are produced per day, while Angola is estimated to have up to ten billion barrels in reserve); and the large water and mineral reserves, as well as its agricultural potential.

ANIP has therefore introduced several initiatives to encourage investment in Angola, including tax exemptions, reduced bureaucratic obligations and guarantee repatriation of foreign investment. Key investors in Angola include Chinese, Portuguese, South African, American and British companies.

For more details, visit www.investinangola.com.

Construction cranes dot the Luanda skyline, as millions of dollars investment in private and public infrastructure pour into Angola’s capital city.

Flight information

Airport

Flights from SA are available on TAAG (Angolan Airlines) and SAA. SAA flies five times per week (not on Tuesdays and Sundays), while TAAG operates daily frequencies from Johannesburg. The flight is only about three hours, but obtaining a seat can be challenging and expensive. An alternative option is to fly via Windhoek from Johannesburg with Air Namibia. Air Namibia operates seven frequencies per week, two of which are on a Sunday, none on Saturday. International airlines operating direct flights into Luanda include British Airways, Lufthansa and Air France.

The 4th February International Airport, located in south Luanda, takes about half an hour by car to get to and from central Luanda provided there is absolutely no traffic. During the week and peak traffic times it is, however, advisable to leave for the airport at least four hours before the flight, as traffic in Luanda can be very bad and it can take a few hours to move just a few kilometres. There are also usually only a few check-in counters serving a particular flight so queuing can take some time. Once checked-in and having gone through emigration and security, travellers are required to declare any dollars they are carrying and confirm that they are not taking the local currency, kwanza, out of Angola. In addition, there’s a separate mobile security check for hand luggage upon boarding the aircraft.

Getting around

Recommended restaurants

Only the very brave need consider driving themselves around Luanda. The city’s roads for the most part are not in a good condition and often chaotic traffic conditions mean the congestion is intolerable. The city’s minibus taxis, dubbed candongueiros, are not a safe option for travellers, nor are there any formal taxis available outside the airport or hotels. Travellers should instead pre-arrange a car and driver who can navigate the city’s treacherous traffic conditions. When setting up appointments, ensure that in addition to the address, travellers also enquire about nearby landmarks, as drivers often do not know locations by the name of the street. Ensure you have a driver for night driving as well, as often drivers are not willing to ferry their clients at that time and wait for them. Although local expats are quick to warn travellers not to walk in Luanda, it appears to be generally safe to do so provided travellers remain aware of their surroundings and do not carry laptops, cameras etc. in plain sight as petty crime is on the increase.

While it may appear to be more convenient to eat at the hotel, it’s very expensive (dollar-priced) and travellers will miss out on the delightful Portuguese cuisine that can be had at local restaurants. A popular option for expats is the Ilha de Luanda (a peninsula that juts out into the Bay of Luanda). The most popular restaurant options here include Coconuts, Chill Out, Chez Wou, Caribe and Pimms. For more traditional Portuguese or Angolan fare, try Cilena (Rua Amilcar Cabral), Restaurante na Brasa (near Cilena), and O Tendinha (Rua da Missão almost across from Hotel Trópico). For a quick lunch, try Restaurante Marginal Esplanada (great soup and Portuguese lunch dishes) and Rialto Cervejaria for pizzas (both on the Marginal). The local beers: Cuca, Nocal and Eka are cheap and good. International beers are available, while wine is imported and quite expensive. Bottled water is imported from Portugal (Caramulo) although a local, less popular, bottled water (Bom Jesus) can be bought at supermarkets. The usual rules about drinking tap water or ice, and eating unpeeled, uncooked fruit and vegetables applies in Angola.

14 MAY 2009 • BUSINESS TRAVEL NOW

DESTINATIONS

Only the very brave need consider driving themselves around Luanda. The city's roads for the most part are not in good condition and often chaotic traffic conditions mean the congestion is intolerable.

Visas

Recommended hotels

Angolan officials acknowledge that visa requirements for any nationality are quite stringent. South Africans can apply for visas in Cape Town, Pretoria and Johannesburg and these take a minimum of five working days to process, although it’s advisable not to leave it to the last minute. The Johannesburg and Cape Town office require applicants to fill in application forms at the office, not beforehand. A letter of invitation from an Angolan company or an official entity with full name and passport number, a letter of employment and two passport-size colour photographs are required to accompany the visa application. The embassy or consulate only advises visa costs once they have confirmed the visa application is correct.

Hotel rooms in Luanda are extremely expensive and fairly difficult to obtain at short notice.

While this situation may change soon as a result of the significant number of rooms coming on stream in 2010, travellers can expect to pay several hundred dollars for a three- or four-star room anywhere in the city.

The most popular options are Hotel Alvalade, Hotel Trópico, Hotel Continental, Hotel Tivoli, Hotel Mundial and Hotel Presidente. The facilities at these hotels are as modern as travellers can expect anywhere else in the world. Hotel bills can be paid in dollar or kwanza, but charges for food, room service, drinks and other services are very expensive.

Fast facts: • Business attire is formal despite the heat and humidity, i.e. business suits.

• Don’t be deterred by the military and police presence on the roads.

• Roads are not well signposted, nor are building numbers marked.

• Don’t try to do more than three appointments a day, unless they’re clustered in the same area, since the traffic can be very bad. Expect appointments to arrive late or not at all.

• Angolan businesspeople are very courteous and formal.

• Communication by telephone is more effective than by e-mail. E-mails often remain unanswered.

• Walking around Luanda can be hazardous. Pavements are blocked by cars, potholes, and vendors – and open drains, overflowing bins and rubbish are everywhere.

• Be careful not to board the wrong bus when leaving the aircraft upon arrival at Luanda airport (if arriving on a flight from Namibia). There is a bus that takes domestic tourists (originating from Lubango) avoiding immigration and it’s difficult to get back. Rather take the bus for passengers flying from Windhoek.

• English is not spoken widely so brush up on your Portuguese or ensure you have a Portuguese interpreter accompanying you.

The pretty pink National Bank of Angola building lies on the Marginal and is arguably Luanda’s most famous landmark.

Money matters The dollar and kwanza are interchangeable in most parts of Luanda.

Bills are usually given in kwanza, but can be paid for in dollar and change is given in both currencies. Kwanzas cannot be obtained before arriving in Angola and it is illegal for travellers to take the currency outside Angola. The dollar/kwanza exchange rate is set at about US$1 to 75 kwanza. The rand/kwanza rate is R1 = 8 kwanza.

Bureaux de changes are located across the city, as are an extensive number of local banks and foreign currency can be exchanged for kwanza here. It is advisable for South African travellers to carry dollars with them to Angola.

What to see and do Luanda is certainly not a leisure tourism destination and therefore has very few attractions, except for the St Miguel Fort, overlooking the city, currently closed for renovations; the Slavery Museum, about 20km south of the city; and Benfica arts and crafts market (very basic selection of arts and crafts) on the way to the Slavery Museum. A popular option is to drive to the Ilha de Luanda for lunch or dinner, or a quick boat trip to the island of Mussulo, south of Luanda, for the day. For trips outside Luanda, visitors can contact EcoTur which arranges short trips to the nearby Kissama National Park and the Kalandula Falls. EcoTur also arranges Luanda city tours. There are a few game fishing lodges south of Luanda, run by South Africans, the most popular of which is Flamingo Lodge.

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MAY 2009 • BUSINESS TRAVEL NOW

15

ON THE RADAR

Travel insurance – a necessity in today’s world In a world of economic uncertainties and safety concerns, travel managers have to think more carefully about their risk-mitigation solutions. Natasha Tippel takes a closer look…

I

N this day and age, travel insurance and a relationship with medical and security services companies are no longer a nice-to-have option, but rather an essential item.

“People are becoming more aware that it is financially dangerous to travel without travel insurance, especially now the rand has weakened, which means any expenses incurred overseas, particularly on the medical front, could put travellers severely out of pocket,” says Travel Insurance Consultant’s (TIC) md, George Novis.

Although poor economic conditions appear to have resulted in less company travel for some corporations, travel into Africa and other high-risk areas continues to grow. “Business expansion into Africa is growing and a number of SA companies are investing abroad. It’s vital that companies ensure their employees – whether they are secondees, expats or short-term business travellers – have adequate insurance in the event that they incur a travel or medical emergency.”

“In the last 16 months, we’ve been involved in a number of global security events that underline the need for holistic and integrated emergency response plans, including the start of the uprising in Madagascar in January.”

- Christine Marincowitz A holistic approach Corporations must understand the alternatives open to them, including the risks if they neglect to purchase the correct level of insurance. That is why experts recommend travel buyers consider a holistic risk-mitigation solution for their travellers.

Marketing manager for International SOS South Africa, Christine Marincowitz, says: “In the last 16 months, we’ve been involved in a number of global security events that underline the need for holistic and integrated emergency response plans, including the start of the uprising in Madagascar in January.”

An emergency response plan must be created to deal with different types of crisis, she says.

“All stakeholders – travellers, company directors, assistance companies and insurers – need to know exactly what is expected of them in an emergency situation.”

“People are becoming more aware that it is financially dangerous to travel without travel insurance, especially now the rand has weakened, which means any expenses incurred overseas, particularly on the medical front, could put travellers severely out of pocket” - George Novis

TIC gives its product a facelift AFTER extensive research and analysis, TIC has revamped its product. The company has added new benefits that are specifically designed to make the product more competitive, according to md George Novis.

With this in mind, TIC has implemented the following changes to its business policy: • Medical and Related Expenses Illness or Injury cover has increased to R50 million.

• Pre-Existing Medical and Related Expenses cover has increased to R500 000 for journeys under 32 days.

“Research has shown that SA travellers have adequate death cover, whether via their pension funds or private insurance arrangements, and consequently don’t require much more cover while travelling. But the concern remains that a traveller might survive an accident, but be permanently disabled,” says Novis.

Therefore, TIC has also introduced a living benefit with high limits in the event of accidental disability.

Minimise travel risk with TravelTracker INTERNATIONAL SOS, a travel insurance assistance company, in association with Control Risk technology, has launched TravelTracker.

The enhanced travel tracking product allows companies to arm employees with information that will keep them safe and secure, plan and act immediately in the event of a crisis. Features include: • Automated pre-travel advisory email • Real-time traveller situation overview • Built-in communication vehicles • Daily reporting for multiple users • User-defined access • Customised risk ratings and more 16 MAY 2009 • BUSINESS TRAVEL NOW

Finding the right fit With the many different types of risk and options out there, travel buyers have to consider products that best suit their travellers’ needs.

“With the current economic trends, travel is now considered a ‘luxury’ purchase and, therefore, the travel insurance industry is far more aware of price and product value to the consumer,” says Leevashine Naidoo, a travel insurance account executive for Standard Bank.

“Consumers seem to have become more aware of what their travel insurance actually provides and, as a result, insurance policies are continuously being revised to cater for changes in risk and consumer needs.”

For example, TIC’s corporate policy has been designed specifically to provide adequate cover to corporate companies for business travel. “The policy allows for flexibility for corporates so they can choose the specific cover they require,” says Novis.

“This allows for a personalised choice of benefits, varying limits of cover and differing rates.”

Naidoo advises that when buying any form of travel insurance, corporates should ensure they are fully aware of the claims conditions, various sub-limits and any general exclusions in the policy.

“The consumer needs to be aware that pre-existing medical conditions are generally not covered automatically and neither are any hazardous activities, which increase the risk or exposure. The insured should read the policy wording carefully to ensure certain activities are not excluded. In the event that the extent of the cover is unclear, the client should contact the insurer and verify cover before departure.” ■

With volatile currency fluctuations affecting global and local markets, especially now with concerns around a global recession, it’s essential for corporates to manage their forex costs more effectively. Natasha Tippel reports.

I

N the current economic climate, corporate travel decision-makers are faced with many challenges on how to manage their costs more effectively, forcing corporates to be more meticulous and innovative when purchasing foreign exchange.

Many businesses have reduced their travel expenditure by limiting their business trips.

“Both domestic and international travel has been cut to a minimum,” says director of sales and marketing for American Express Foreign Exchange, Blacky Komani.

Director of SAA Reynolds Travel Centre, Mary Reynolds, agrees: “Budgeting in a volatile environment and having to choose cheaper options is challenging, especially when you have to compensate for losses while still managing the risk of protecting business travellers without compromising their business objectives.”

Managing your budget Experts suggest several tactics corporates can use to better manage their forex spend in these difficult times.

Director of transaction products for Standard Bank, Sugendhree Reddy, suggests travellers buy their forex upfront. “This will help travellers stick to their budgets, as they can only spend what they’ve bought. It also helps them keep track of their spending.

An additional advantage is that the exchange rate is fixed, which means the costs are known and travellers are not subjected to exchange rate fluctuations.”

Craig MacFarlane, director of retail banking for Bidvest Bank, agrees: “One of the best ways to manage costs is to cut back on credit card spend, for several reasons: the credit cardholder is subject to variation on the exchange rates depending on when the transactions are processed by the banks; drawing cash overseas from a credit card is the most expensive way of accessing money with foreign bank charges, local bank charges and cash advance fees levied by the local card issuer; and interest on a cash advance can be as high as 20% in addition to all other charges.”

MacFarlane suggests using prepaid pin-protected debit cards, such as the World Currency Card or Cash Passport cards, where the foreign currency is loaded at a set rate with significantly lower usage fees than those applied to credit cards overseas.

Meanwhile, operations manager for Tower Bureau de Change, Patrick Khouri, advises corporates to watch markets and travel while exchange rates are favourable.

He also recommends carrying specific currencies for specific countries, thereby avoiding cross rate fluctuation, and suggests that unused currencies should not be sold back to the bureaus on condition that the South African Reserve Bank’s Exchange Control Department (Excon) regulations are not breached.

MasterCard’s Chip and PIN technology continues to grow IN light of the growing number of consumers who have migrated to Chip and PIN technology, MasterCard has launched an awareness campaign to ensure all stakeholders are up to speed with the new transaction process.

According to MasterCard Worldwide, South African banks have issued in excess of one million MasterCard Chip and PIN cards and, as a result, retailers are seeing a rapidly growing number of Chip and PIN cardholders at pay points around the world.

Once the new payments system is working at full capacity, Chip and PIN cards will start to be seen as more than just a fraud deterrent. “The card’s chip can store a lot more information than a magnetic stripe can,” says Walter Volker, md of the Payments Association of South Africa. “This enables the Chip and PIN card to have many applications and can be used for banking/payments, loyalty programmes and promotions, access control, ticket buying, parking and toll payment, as well as transport payment.”

One of the main benefits of Chip and PIN technology is interoperatibility. “It offers multiple payment applications on a single card, credit and debit, and it works like any other MasterCard; the standards are the same internationally,” says Carolina Reddy from Standard Bank who represents the Chip Working Group in South Africa.

Volker adds: “The long-term global objective is for all countries to use Chip and PIN as the common method of cardholder identification and payment.”

Chip and PIN cards prove convenient for banks, retailers and cardholders by providing a safer and more secure method of paying for goods or services. They are more difficult to counterfeit than magnetic stripe cards, making them a powerful fraud deterrent.

Forex tips ■ For travels throughout Africa, cash is recommended. Try to take the currency of the country you are visiting to avoid any further conversion fees and charges. Alternatively, US dollars are accepted throughout Africa.

■ The Cash Passport card is a great tool that assists corporate travellers in managing their budget for international travel to all major centres worldwide.

This product works on the VISA network. It’s cheaper than using a local credit card, as it can be preloaded, so you get the day’s exchange rate on purchasing the card. The card attracts a flat fee when drawing money from an ATM and no charge on point of sale transactions. All transactions on the card can be viewed on the internet and you can’t overspend on the card; it can be re-loaded while you are abroad.

■ Travellers’ cheques are still a safe way of travelling, depending on the destination. Fee-free locations are becoming fewer and acceptance may cover a charge or fee of some sort.

The advantages of using Standard Bank’s prepaid travel card, TravelWallet, are that you can use it as a payment and ATM card anywhere in the world where MasterCard is accepted. You can withdraw money in the currency of the country you are visiting at any Cirrus or MasterCard ATM (it can be loaded with pounds, euros, US dollars and Australian dollars). You can use your card at merchants that accept MasterCard (these transactions are free if used to pay in the same currency as the currency loaded on your TravelWallet). If your card is stolen, you can stop it immediately and order a replacement card while travelling. You can request an emergency cash advance. Your card is PIN protected for ATM cash withdrawals.

MAY 2009 • BUSINESS TRAVEL NOW

17

ON THE RADAR

Forex – friend or foe?

BIG FOTO

1. mauritius Apavou Holidays. “Biggest Promotion – pay for half board and get fully inclusive” packages.

Save from R3 400 pps. Offer is valid at the following

four-star hotels: Le Plantation Resort & Spa (Deluxe), Indian Resort & Spa (Deluxe), Ambre Hotel (Superior) and Mornea Hotel. Offer expires October 31.

2. ZANZIBAR African Encounters. Book and pay before May 31 to qualify for these special rates.

Four-night packages are from R5 295 and seven-night packages are from R6 415.

Rates are pps and include return flights exJohannesburg, airport-hotel-airport transfers, taxes and accommodation with daily breakfast.

Half-board and fully inclusive options are also available. Offer is valid until June 30.

3. NIGERIA Protea Hotel Ikeja. Rates are from $227 pps.

Rate includes free breakfast, airport transfer, daily business newspaper and wireless internet.

Minimum three-night stay is required. (Note: one airport pick-up and one airport drop-off). Offer is not valid for groups and expires on May 30.

BIG FOTO

SPECIALS

DEAL DETECTIVE

4. SOUTH AFRICA SA Sports Packages. 2009 Tri-Nations – South Africa versus New Zealand in Durban. Rates are from R2 977 pps. Package includes return airfares ex-Johannesburg, two days’ car hire and two nights in a four-star hotel, daily breakfast and match tickets. Offer is valid July 31 to August 1.

18 May 2009 • BUSINESS TRAVEL NOW

5. EUROPE Olympic Airlines. Special fares from R2 000 to select destinations in Europe. Taxes are excluded. Offer is valid for departures up to June 21. Minimum stay is three days and maximum stay is three months. Special domestic add-on fares are also available.

SPECIALS

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. PARIS Eurostay. Paris Family City Package – four nights from R2 999 pps. Rates are based on a family of four (two adults and two children) in a studio apartment. Package includes three-star accommodation, private airport transfers from Charles de Gaulle Airport, Les Cars Rouges Paris Tour (Hop On Hop Off Bus Tour) two-day pass.

Rates expire October 31.

9. SINGAPORE OR MALAYSIA Air Mauritius. Special fare to Singapore or Kuala Lumpur ex-Cape Town from R3 800 return. Fares ex-Durban or Johannesburg are from R3 400 return. Fares do not include airport taxes. Offer expires June 24.

BIG FOTO

10. MALAYSIA

6. KENYA One Stop Holidays. Five-night Mombasa specials – valid for May only. Rates are from R6 550 pps. Package includes return airfares ex-Johannesburg, return airport-hotel transfers, five nights’ accommodation with breakfast and dinner daily. Rates exclude airport taxes of R1 560 pp.

11. DUBAI TO ROME Cruises International – 12-night cruise from Dubai to Rome onboard Royal Caribbean International’s Legend of the Seas. Cruise departs Rome May 20. Rates are from USD799 pps. The rate includes onboard accommodation, meals and entertainment. Price excludes port charges and gratuities.

7. HONG KONG OR INDIA Emirates Airlines. “Hong Kong on Sale� fares are from R5 022 ex-Johannesburg and R6 022 ex-Cape Town. “India on Sale� fares are from R4 442 to Bombay ex-Johannesburg and R5 442 ex-Cape Town. All fares include airport taxes. Valid for sales and outbound travel until June 25.

Minimum stay is three days and maximum stay is 12 months.

OPENING SUMMER 2008/9

Travel Vision. Kuala Lumpur – rates are from R9 358 ex-Johannesburg and R9 938 ex-Cape Town. Package includes return airfares to Kuala Lumpur, five nights at the four-star Dorsett Regency Hotel, daily breakfast and return transfers and half-day city tour. Offer excludes airport taxes and fuel surcharges of about R2 595.

BIG FOTO

12. ASIA Qatar Airways. Asia promotional fares are from R3 190 to Hong Kong and R3 790 to Singapore, Beijing and Shanghai. Minimum stay is three days and maximum stay is two months. Tickets are valid for sales and travel until June 15.

Offer excludes taxes and is valid for travel ex-Johannesburg.â–

The Link . . . City to Sea HARBOUR BRIDGE HOTEL & SUITES

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May 2009 • BUSINESS TRAVEL NOW HB Ad BTN.indd 1

19

1/14/09 2:36:40 PM

ON THE RADAR

Reconciling reporting tools

Data reports provide a valuable measurement instrument for companies and the importance of reporting tools (RTs) should not be underestimated when it comes to affecting savings on travel costs. BTN garnered some industry opinion about these tools – the must-haves and general issues around them. By Max Marx

M

OST organisations struggle to get detailed information about how they spend their money with suppliers of goods and services, says Alan Low, md of Purchasing Index.

He says SA companies have admitted to challenges in analysing spend quickly and effectively. “Procurement departments engage in areas where they’ve got better information and they tend to ignore areas where there’s little information so their understanding about overall spend is thus limited.”

Low says TMCs and airlines tend to be “pretty poor” at reporting a consolidated position of how their clients are spending money. “We’ve benchmarked a few of them and found there is often no consistent format and much of the information received requires further analysis. Many anomalies exist so it’s not information you can readily pick up and use.”

And, he adds, an increasing amount of spend – some companies reckon as much as 30% – is going through company credit cards, spend that TMCs in most instances don’t see.

“By getting concise, accurate data on operational and management reporting, strategic decisions can be made by using scenario-based reporting and ‘slicing and dicing’ information to get ‘what if’ scenarios on business trends.”

- Mohammed Mosam The information systems behind credit cards also do not normally supply companies with cost codes for credit card purchases, so a lot of internal administration is required to get the purchase into the correct cost centre.

Many bigger organisations, says Low, are fairly lax when it comes to posting expenditure into the correct cost centre.

According to him, research conducted by the Aberdeen Group in the US found that for every US$100 procurement people were claiming as savings, 66% never improved the net profit of the company.

He says procurement departments and business units need to work together to ensure savings get to the bottom line. “But with budgeting in SA, most organisations work on the principle of use it or lose it, so generally everyone wants to spend their budgets to get the same or more money in the next year.

This can be in conflict with an organisation’s cost-saving drives.”

Julian Curtiss, ceo Transaction Technology Solutions

Wally Gaynor, Club Travel md

Anita Parent, Wings Corporate Travel global head of department, Products & Solutions

Yvonne Elford, Club Travel corporate director

Alan Low, md of Purchasing Index

Andrew Shaw, Amadeus GTD Southern Africa solution manager: e-commerce and development

“It’s impossible to manage what you cannot see.”

- Julian Curtiss

What organisations really need, he adds, is information that is complete and sufficiently comprehensive for both the business unit and procurement department so they can see what needs to be done to reduce costs.

“Using third generation tools such as Spendtrak gives companies a different mindset and position to decide what is worth saving money on and what isn’t.

Recently, a large multi-national company in SA decided to cut all domestic travel that involved employees flying to meet other employees, realising that would reduce travel spend by R60m. Without the proper analysis, the company would not have been able to realise this saving.”

Anita Parent, Wings Corporate Travel global head of department, Products & Solutions, says while many TMCs provide the standard reports, TMCs should be thinking more like business consultants and supply more in-depth reports that offer insights into business-critical issues.

“This often means that data needs to be captured and analysed in a completely different manner. This ability will set a business travel consulting company apart from the standard travel management consultancy.”

20 MAY 2009 • BUSINESS TRAVEL NOW

Howard Stephens, Nedbank’s chief procurement officer: Group Procurement Division, answers in his personal capacity and not on behalf of Nedbank

Jose Vilares, NU-COM ceo

Mohammed Mosam, divisional director Pastel Evolution (a division of Softline Pastel)

Thapelo Lehasa, ceo South African Travel Centre (SATC)

ON THE RADAR

Q&A How do reporting tools (RTs) assist in travel management?

A: Low says travel management information (MI) comes from various sources and by coordinating this information, companies can manage travel spend more efficiently.

A: Stephens says RTs enable companies to identify spend patterns, particularly “outof-lines”. “This is usually non-compliance to policy, but could also be a situation where a traveller is within policy, but not meeting company savings objectives.”

A: Curtiss says they’re critical to MI that monitors compliance and spend per category and supplier.

A: Elford – they’re useful in managing trends when year-on-year spend is analysed.

A: Shaw says RTs help corporations optimise adherence to travel policy. They also enable the control of costs through identification of most-used routes and carriers, which helps to negotiate new policy for better corporate rates and fares with preferred providers. “Corporates need to ensure they achieve their return on investment for travel technology such as online booking systems.”

A: Lehasa – “Reporting enables businesses not only to access company data, but also to filter and display the data in a way that helps travel managers easily extract and interpret the relevant information. Without RTs, procurement managers would have great difficulty in gaining the necessary visibility into actual travel spend and trends analysis, which could be critical to decision-making.”

Are RTs used in travel different from those used in other cost centres?

A: Stephens – Nedbank uses different tools for travel analysis.

A: Curtiss says different tools need to be used because in travel, apart from airfare, the final cost and supplier (in the case of entertainment and subsistence) is not known until the event has taken place. “In all other procurement, the costs are known upfront. This makes approval in the travel space more challenging and thus reporting more crucial.”

A: Mosam says financial and management reporting within travel and other cost centres is quite similar. “Where it differs is in operational reporting, which will be more specific to the tasks of a cost centre of the travel business.”

What do RTs allow one to see and do?

A: Stephens says it enables one to see travel patterns, preferred routes, savings, lost savings opportunities and trends.

A: Curtiss says its depends on the tool.

“Functionality includes online travel requisition and authorisation workflow,

integration into GDSs for booking finalisation and web-based and offline post-event expense management.”

A: Low says reporting tools allow one to see detailed traveller profiles – individual, group or business unit. If a TMC is employed, he says, the reports should give a detailed view of the TMC’s performance on matters such as agent productivity and airline preferences, which can influence service level agreements.

A: Curtiss adds that travel requisition tools have become critical in assisting management in making decisions about whether travel is necessary.

“Companies are also applying more rigor to authorisation. And once approved, tools assist in ensuring procurement is directed to approved suppliers at preagreed rates, which ultimately leads to cost reduction. Automated expense management reduces the costs of processing expense reports, and assists in the discovery and management of noncompliant spend.”

Must-have functionalities?

A: Stephens – Must-haves are consolidation by cost centre and business unit with drill down to the details, search facilities and queries based on selective parameters.

A: Low – Speedy cleaning and integration of data, a high degree of data manipulation capability and visual, easily understandable and accessible reports.

A: Curtiss – They must provide detailed information on who travelled, how, when and where, and also on hotel stays, rates, car rental, and any extras incurred. Online capability enables travellers to stay up-todate with their data.

A: Gaynor – Missed savings. For example where a traveller was offered the cheapest fare, but elected to fly at a higher fare.

A: Mosam – Ease of use and secure online web reporting.

A: Shaw – The ability to drill down into all travel-related data and create executive and exception reports. Also critical are reports that provide employee information like contact point for crisis management or invoicing information for expenses reports.

A: Lehasa – Ease of integration of the RT into one’s data warehouse.

Does your TMC’s RT provide adequate information?

A: Curtiss – “They do for the most part, but the corporate is then locked into that TMC and changing TMCs means they’ll probably have to change tools. TMC tools only handle the pre-event issues, not post-event, and most are not fully available online.”

A: Morris – “We’ve seen a few larger corporate clients try running their own travel departments, which for them has drawbacks such as finding quality staff, dealing with ADMs and hiring specialised travel bookkeepers. One of the biggest challenges is the lack of quality reporting. Often big back office systems cannot handle the reporting requirements related to travel.”

What reporting do TMCs provide that companies can’t provide for themselves?

A: Stephens – “Without disclosing other customer details, TMCs are able to provide comparisons including noncompliance as well as industry prices, trends and behaviourals.”

A: Curtiss – GDS-specific information, airline availability and unused tickets.

A: Elford – low-cost spend with reference numbers to assist with card reconciliation. “We also offer average ticket price and route analysis.”

A: Gaynor – information on what booking classes are being used, which can impact commercial agreements with airlines.

A: Mosam – “It’s not that companies can’t do reporting by themselves, but rather how this is done: the time it takes and the data’s accuracy and integrity.”

A: Shaw – “While TMCs traditionally provided all reporting for corporates because they owned the data, with the advent of corporate travel management systems like Amadeus e-Travel Management, corporates have direct access to the data and can integrate it into their internal workflow systems.”

A: Lehasa: “Typically companies are not equipped to provide travel analysis reporting down to a granular level with the intention to determine traveller trends and manage costs. The TMC provides MIS data that gives a company insight into air detail reports such as carriers flown, carriers booked but unflown, unused e-tickets, hotel and car detail reports, cost comparisons, missed opportunities, cost savings analysis, total travel spend reporting, total TMC service fee reporting, monthly account management reporting and yearly management reports of the account.”

How do RTs impact costs?

A: Low – “If spend analysis is a service (as opposed to expensive software that the company must buy and maintain) the pay-back can be a multiple of the annual cost of the service for medium and large companies. When total travel information is available, organisations get a view of their costs and can evaluate holistically the potential savings opportunities and act upon these.”

MAY 2009 • BUSINESS TRAVEL NOW

21

ON THE RADAR

What’s out in the market?

Wings Corporate Travel WINGS Corporate Travel has one of the most advanced reporting tools available on the African continent and rivals many others in the US, UK, Middle East and Far East, says Anita Parent, global head of department, Products & Solutions.

“Due to our investment in standardised and integrated technology platforms, we are able to generate comprehensive reports on almost any measurable issue that a travel manager may need.

Other TMCs are restricted in providing regional or global reports because their front-, mid- and back-office systems are not fully integrated, which results in reports being generated in different formats and in different currencies. Wings remains one of the very few global TMCs that have successfully integrated the front-, mid- and back-office systems to allow for full data integration.”

She adds: “Because all the data is pulled, analysed, synthesised and correlated from a single Wings technology hub, we’re able to generate large and complex global reports in a matter of minutes, providing the travel manager with data that allows for greater insight into spend as well as allowing for the identification of trends.”

She says Wings’ central data hub provides a single standardised platform where all passenger information can be accessed by all locations, globally.

“Therefore, regardless of where the data is created, captured or updated, this single platform ensures no data is duplicated or omitted. Further, all travel transaction data is imported and stored in one database, allowing for consolidated management information reports in a consistent format regardless of where the transaction was generated. We are unique in the sense that we operate from one technology platform, as well as one centralised database, globally.”

“SATC offers online management information reporting with monthly overviews and year-to-date comparisons of travel spend, sales analysis, savings and policy compliance as well as providing clients with online access to copy invoices and credit notes.” - Thapelo Lehasa (SATC) NU-COM WHILE NU-COM’s main focus at present is VDesk, its sophisticated online e-procurement product, which directly targets corporates, companies specifically looking for a reporting tool can consider TRAVELkit, advises ceo Jose Vilares.

TRAVELkit is an online corporate management reporting tool offering clients an integrated Internet strategy. Through TRAVELkit, clients can access statements, invoices and other related documents as well as travel spend analysis by cost centre and passenger. Customer saving reports are easy to create, and travel spend files easily downloaded to incorporate into spreadsheets and accounting systems.

When integrated with other NU-COM offerings – such as VDesk or the TOPSonline integrated management system – users can also access corporate travel policy and traveller profiles.

Vilares says NU-COM’s solutions are all online and therefore require no fixed infrastructure investment, allowing users with broadband access to benefit from high-end tools anytime, anywhere.

“VDesk, for example, is our full-featured virtual travel desk, an online tool that processes booking requests, approval flow with escalation, travel profiling, policy management and travellers’ expense claims. It also provides a national and regional structure for supervisors, regional managers, approval managers, travel bookers, travellers and consultants; quality control feedback; built-in purchase order management and it incorporates an online search and book facility for flights (including LCCs), cars and hotels.”

He elaborates that with the number of associated tools offered by NU-COM, corporates can get full statistical reporting, account management and reports for easy reconciliation of lodge and individual credit card charges.

Spendtrak SPENDTRAK is a new, next generation spend analysis service that allows clients to consolidate spend from a myriad different sources with data in differing formats. The service provides efficient and quick cleaning, mapping and integration of data.

Staff and management can access and analyse data directly from their PCs in real time giving them visual information that they can act on immediately to make savings.

Alan Low, md of Purchasing Index, developers of the Spendtrak service, says one of the unique selling points is how quickly one can look at all information to make the right decisions and take appropriate action.

Spendtrak’s functionality includes the ability to produce complex views of information in real time and allows the user to drill right down to transaction level. It is scaleable, maintaining a high performance even with millions of transactions and users can produce new views in real time. Standard views include positioning suppliers by type on a map of Southern Africa, supplier relationship management and contract conformity. There is also a module to allow users to forecast/budget and do ‘what-if’ analysis.

MAY 2009 • BUSINESS TRAVEL NOW

23

More product news...

Amadeus offers several solutions that provide statistical analysis and decision support for TMCs and corporates. It offers two industry leading reporting tools, namely Amadeus Communicator, which provides management information on all facets of travel activities, savings reports and traveller tracking; as well as Amadeus e-Reporter, which provides access to data from multiple resources and enables the viewing of pre-defined or customised reports.

Finally, a next-generation technology that transforms the way that spend analysis is used from “nice-to-have” to “must-have” Spendtrak™ is not just spend analysis software but a powerful new service for finance, travel and procurement professionals to manage the way their organisation spends resources.

Spendtrak™ is the starting point at targeting areas for improvement and taking action to change processes and behaviours.

Key Features • Real-time interactivity • Instantly slice and dice vast amounts of data • Easy-to-use • Quickly drill-down to the answers you seek • Automatic trend analysis • Powerful statistical analysis package • Automatically create Powerpoint slides and communicate actions Spendtrak™ does not produce static reports but is a real-time, dynamic system which allows you to drill-down to the critical information you need, to take action.

Air travel spend by Passenger

At a fraction of the cost of most older technologies, Spendtrak™ will immediately demonstrate superior value for money.

Call Alan at Purchasing Index on 084-890-0005 to arrange a demonstration.

BTN0088

24 MAY 2009 • BUSINESS TRAVEL NOW

Mymarket.com THE mymarket.com travel procurement and management system offers the perfect toolkit to realise strategic savings imperatives, says Wayne Muirhead, sales director.

As an e-procurement internet solution, the entire travel procurement process from requisition to integration into existing ERP and accounting systems is automated.

As an online self-booking tool, mymarket.com offers customers all available booking options and fares on a single screen and a wide range of local and international suppliers.

It offers instant booking confirmation, benchmarking against lowest available rates, rigorous adherence to travel policy, and the ability to track declined savings over time.

From a reporting and business intelligence perspective, mymarket.com has the ability to identify maverick behaviour, offer pre-and post flight information, track travel and booking trends, report in real time and analyse spend.

Fully supporting the online booking process are accredited TMCs from the Bidtravel stable. Mymarket.com is a subsidiary of the Bidvest Group.

Quicktrav QUICKTRAV by Quick Software is a popular reporting tool software used by TMCs, advises Trisha Morris, Quick Software’s sales manager.

She says some of the Quick Software options that are commonly requested by TMCs’ corporate clients are fares savings with reason codes, benchmark reports as well as spend per cost centre/division, per passenger and supplier, and also days out the country per passenger.

Pastel Evolution PASTEL Evolution’s reporting tool Pastel Evolution BIC is a complete reporting tool that provides companies with one solution from procurement to expense and revenue management, CRM and business intelligence.

Mohammed Mosam, Pastel Evolution’s divisional director, says the automation of processes up to reporting level and reconciliation back to source documents within one solution leads to cost savings against resources and labour hours.

Pastel Evolution BIC can be customised to any environment, whether corporate or TMC, and offers real-time reporting and can be formatted to user requirements.

Its design uses Microsoft Excel as the front-end user interface, making it easy for users to gain insight into the business with in-depth management reporting.

SAP SAP Travel Management is a fully integrated end-to-end trip life-cycle management solution that covers processes such as requisition, pre-trip approval, pre-andpost-trip data analysis, online booking of flights, accommodation and car rental, expense reporting and reimbursement.

The Travel Management tool seamlessly integrates with the Amadeus, Galileo, and Sabre GDS systems and is offered as part of the SAP ERP system. The Travel Management component can be purchased as a stand-alone product although the true benefit of the solution is only fully realised when implemented with other SAP ERP modules like financial and HR solutions.

SAP’s expense reporting tool is fully integrative, meaning the pre-trip approval and trip costs get filtered through to various other SAP solutions so when travellers return, all they do is capture their receipts to confirm their trip cost. Company credit card data is immediately reflected in the system once credit card statements are uploaded. Travel expenses can be broken down by cost centre and preferred vendors. Controls can be set and post trip analysis to be undertaken. ■

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