BTN May 2010

NOW manage your travel spend better

May 2010

Driven

to succeed

Data

@

imension

Kopsch takes over in-house management

Billback

blues

■ Kigali, Rwanda has come of age ■ We’re open for business, say hoteliers ■ Duty of Care White Paper: get up to speed ■ Preferreds not a swearword – webinar panellists

Heads in the clouds?

A

S I write this, not only is it overcast, but a figurative cloud passes over the horizon. While flights within European airspace are operating again following the recent restrictions due to the volcanic ash cloud in the region, corporate travel managers worldwide are assessing the impact to travel programmes and budgets.

In addition to bills for cancelled meetings, conferences, events or incentives, companies have had to pay overtime to TMCs who reasserted their value by extending hotel visits or arranging alternative transport for stranded passengers, among other essential services.

Volcanologists have warned the eruption may yet be repeated so BTN is currently working on a report to see how local travel buyers coped with the crisis – and what lessons have been learned should an event of this magnitude occur again.

When we initially saw powerful images of the Eyjafjallajokull volcano erupting in Iceland, we never imagined it would touch the lives of so many people in what is billed by some as the worst aviation disruption in history. This is just another reason why duty of care cannot be ignored by organisations (page 12).

Speaking of ripple effects, a recent article on the Air & Business Travel News site spoke about the so-called billback revolution: “the payment solution of choice for the recession and recovery”. This was an interesting read in light of our Power panel this month: Billback blues. While some corporations in SA are looking for alternatives to billbacks, the ABTN article suggests a surge in billbacks as a payment solution following the considerable industry noise surrounding the use of credit cards.

“The billback model delivers on many fronts,” says the report, “but importantly ‘compliance’, in terms of the use of the preferred agency, is truly underpinned by the billback model”. It goes on to say that with compliance, as we know, comes visibility and a great platform for policy evolution and purchasing leverage. “The billback renaissance is no flash in the pan – it has been developed on the back of growing awareness of the unquestionable bottom line benefits,” the report states.

For more lessons learned from travel, read the story of Jenny Kopsch, Dimension Data gm travel: Middle East & Africa. Her message is for buyers to have more patience with travellers who travel because it’s their job not because it’s their passion. This could not be truer, considering all the business travellers stranded recently due to the flight restrictions.

KIM COCHRANE (kimcochrane@telkomsa.net)

Contents

COVER STORY

We speak with Dimension Data’s Jenny Kopsch about how she puts the people first when managing her travel portfolio. Cover image and profile photograph taken by Tijana Huysamen on location at Kai Thai Restaurant in Randburg.

News

2

Power panel

6

Profile

8

How to

11

Insight

12

On the radar

14

Destinations

16

Deal detective

18

New option

19

On the radar

20

• New KZN airport opens amid controversies • Jet Airways arrives in SA • Nigerian repatriation fee – where are the refunds?

• Preferreds not a swearword – webinar panellists

Billback blues

Jenny Kopsch, Dimension Data gm travel: MEA

Deal with content fragmentation and internet offers that undercut corporate rates

Get up to speed with duty of care

Far Eastern airlines

Kigali, Rwanda comes of age

Cape Town, Malaysia, Vic Falls – find your travel special

Win a trip to Cape Town with BTN and CWT SA! PUBLISHER David Marsh MANAGING EDITOR Natalia Thomson CONSULTING EDITOR Kim Cochrane CONTRIBUTORS Linda van der Pol, Max Marx, Hilka Birns, Liesl Venter, Natasha Tippel, Sue Lewitton DESIGN & LAYOUT Michael Rorke

Hotel brands

ADVERTISING SALES MANAGER Diana Comninos SALES REPRESENTATIVE Tanya Cloete ADVERTISING CO-ORDINATOR Natalie Walker SUBSCRIPTIONS subs@nowmedia.co.za ANNUAL SUBSCRIPTION RSA full price R275.00, RSA annual debit order R220.00, Foreign on application PRINTED BY Juka Printing (Pty) Ltd PUBLISHED BY Lugan Investments (Pty) Ltd trading as Now Media, Now Media Centre, 32 Fricker Rd, Illovo Boulevard, Illovo, Johannesburg, PO Box 55251, Northlands, 2116, South Africa. Tel: +27 11 327 4062, Fax: +27 11 327 4094,

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.

BTN is the media partner of ACTE SA and the ITMSA.

e-mail: btn@nowmedia.co.za, web: www.btnow.co.za

May 2010 • BUSINESS TRAVEL NOW

1

News

T

HE new King Shaka International Airport (KSIA) in KwaZulu-Natal has opened amid numerous controversies.

It’s, what some say, an airport ahead of its time and ahead of what industry players said was entirely necessary. The new R8,5bn 103 000sqm KSIA, three times bigger than Durban International Airport (DIA), has been built to accommodate 45m passengers by 2060.

This, says Acsa, is from the expected 7,5m passengers using the airport in 2010. But just getting to the 7,5m mark in 2010 looks all but impossible with arrival numbers in the last year only around 4,3m. International airlines tell BTN they have no interest in serving the Durban gateway and domestic airlines believe the old airport was sufficient.

Meanwhile, domestic airlines appear to be more concerned about the additional airport charges than the swanky new airport’s amenities.

The cost is going to be passed on to both airlines and consumers in the form of increased airport taxes that are planned by Acsa, says 1time commercial director, Desmond O’Connor.

Passengers flying from KSIA may be in for a surprise when they see ticket prices hiked, as

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May 2010 • BUSINESS TRAVEL NOW

airlines are forced to pay more to transport fuel to the new airport.

“The old DIA is situated right next to the Sapref refinery, so it was possible to have a direct pipeline from the refinery to the airport.

KSIA is, however, 60km away and fuel will need to be transported by road to the fuel tank farms next to the new airport,” confirms Acsa manager communications and brand for the DIA, Colin Naidoo.

O’Connor says depending on where the fuel is transported from (Johannesburg or Durban), it will cost the airline in the region of R4m to get its fuel to KSIA. He says estimates show it will cost an additional R1 100 per flight to Johannesburg and R2 200 to Cape Town to cover the additional fuel costs.

These additional costs, says Comair joint ceo, Gidon Novick, will ultimately impact passengers. “[Comair] has not yet finalised our fuel contract.

However, there is no capacity for the airline industry to absorb these costs. The increase will be passed on to the passenger.”

• Note: Acsa has put together a document with critical information about the move to KSIA. To read the full document, visit www.btnow.co.za.

Pic: Tijana HUYSAMEN

New KZN airport opens amid controversies Jet Airways arrives in SA JET Airways recently launched its daily services to SA, the airline’s first African destination. Speaking after his arrival on the inaugural flight, Jet Airways ceo, Nikos Kardassis (pictured right with Jet Airways gm of Africa and Indian Ocean, Alex Cost), said the flights would help realise some of the untapped business and tourist potential between SA and India. The flights will operate between Johannesburg and Mumbai, from where passengers are able to connect to a network that covers 51 destinations across India and 22 international destinations in Southeast Asia, the Far East, North America, Europe and the Gulf. The airline is operating A330-200 aircraft on its SA routes in a two-cabin configuration, with 30 business and 190 economy class seats. The airline will introduce its JetPrivilege loyalty programme in which SAA is a partner, allowing passengers to earn and redeem miles on both airlines.

News

Nigerian repatriation fee – where are the refunds?

S

EVERAL corporates and TMCs are having difficulty getting the first-time visitor repatriation fee of R6 000 back from the Nigerian Embassy despite assurances from the Nigerian High Commission that the fee is refunded as soon as the required documentation is provided.

The Embassy recently introduced compulsory first-time visitor repatriation fees in what some believe is tit-for-tat retaliation, as first-time Nigerian visitors to South Africa are required by the SA government to pay a similar fee.

Diane Swartz, owner of visa company Visalogix in Midrand, has been waiting since October last year to get a repatriation fee refund for a child traveller.

Lindie Botha, team leader at Rennies Travel Shoprite Checkers in-house in Cape Town, says she’s been waiting for two refunds since January. “We’ve submitted a refund application with the copy of the visa and re-entry stamp to prove the passenger is back in the country, but still no refund.”

A concerned Carole Graaff, Ericsson’s travel expert: Sub Saharan Africa, has been waiting for four refunds for more than a month and is unhappy about the situation.

“We don’t know if the money is ever going to be refunded. Our predicament is that employees cannot wait a month to put in their travel claims and we cannot deduct the cash advances from them because they haven’t received them back yet. The money is also refunded back to the traveller and we

By Max Marx are not advised by the consulate when it has been done, so an employee can keep that money as long as he/she likes.”

She adds that while the repatriation fee is supposed to be for all first-time visitors, it now seems that it is payable on an adhoc basis.

Swartz as well as some corporates and TMCs say they have tried getting the visa without paying the first-time fee and have at times been successful.

Others have had to pay the fee every time.

Bill de Villiers, operations manager at BCD Travel Standard Bank in-house, has been able to get visas without paying the fee and according to Charmaine

Lubbe, branch manager: Tourvest Travel Services who at the time of writing was assisting at the MTN American Express in-house agency, says their MTN clients have yet to be charged the R6 000 fee.

“It doesn’t appear to be consistent, as some of our travellers have been first-time applicants, but to date, the fee has not been charged by the Embassy.”

Dale Weldhagen, managing member of Mass Visas, says the repatriation fee is payable for all first-time applicants so it shouldn’t be on an adhoc basis. “All our first-time applicants have been asked to pay the fee.”

The Nigeria High Commission responds to BTN This was the comment of Aminu Abdulkadir, senior counsellor at the Nigeria High Commission in Pretoria, in response to BTN’s list of questions relating to the concerns mentioned in the article: • “Refunds are made as soon as documentation of the applicants is complete and correct. It does not take a month once the requirements for the refund are met. Payment is effected immediately. Delays are usually traceable to incomplete or inadequate documentation.

• On return from Nigeria, the applicant must submit a copy of his/her passport showing

entry and exit stamps and receipt of the deposit before the refund is effected.

Account number and area code must be included.

• The repatriation fee is a policy of the Federal Government of Nigeria just as it is a policy of the South African government to charge first-time Nigerian visitors to South Africa a repatriation fee.

• The repatriation fee can be waived for first timers at the discretion of the High Commissioner – for example, for official government visitors.”

May 2010 • BUSINESS TRAVEL NOW

3

‘Preferreds’ not a swearword – panellists BTN recently hosted a webinar on preferred partnerships and based on the discussion, we were told that ‘preferreds’ are primarily in place to “add functional value to end users”. So then why the mistrust? Kim Cochrane highlights a few points made during the webinar.

A

S a travel buyer, Warren Tanner-Ellis, MTN group travel manager, says he’s not against any form of preferred partnership so long as he gets the best deal for his travellers. “If that best deal is jeopardised due to some cost that lives within the supply chain, then I’m going to ask questions of my TMC/supplier.

If the questions are answered, that’s good and it creates discussion. There have always been trust issues in the industry and trust gets questioned when corporate travel managers don’t ask the right questions or engage with suppliers but rather make assumptions. We’d like to trust our suppliers and we’ve always valued our TMC’s input. We know the TMC doesn’t use a preferred partner of ours if that preferred doesn’t offer the best deal at the point of sale. We have an incentive programme for our TMC to get us the best deal.”

Bronwyn Phillips, HRG Rennies Travel director of business development, emphasises that preferreds are “client driven”. “Clients dictate who our preferreds are. We create partnerships so we can better service our mutual clients. If a client says they don’t want to use a particular supplier, then that supplier is not part of what we offer them.”

TAG founder, Jonathan Gerber, agrees: “We view preferreds more in terms of the favours we can get for our customers. With BA on strike, for example, we can call our preferreds to arrange alternatives. We wouldn’t even know who to call at our non-preferreds.”

Stuart Cochrane, Comair/ kulula.com executive manager: sales & route development, also believes preferreds are becoming “far more functional relationships 4

May 2010 • BUSINESS TRAVEL NOW

in terms of favours and waivers” – when something goes wrong, you know who to ask to make the problem go away.

In response, Advocate Louis Nel of Benchmark says the Consumer Protection Act (CPA) could be diametrically opposed to preferred partnership arrangements unless the partnerships have benefits such as service level agreements, enhanced product range and differentiation, etc. “If you as a TMC require a client to engage with a third party (through a bundled goods scenario), you can only do it if there’s a financial benefit or a convenience enhancement for the customer.

If you can get over those two hurdles, I don’t see any harm in the partnership. If the deal is restrictive and it excludes other legitimate competitors, then you could be referred to the Competition Commission etc. Duty of care on the other hand is an implied requirement and if you choose a supplier on price – and duty of care isn’t part of the decision – you’ll be in trouble. Duty of care may be underestimated but cannot be ignored. If you don’t exercise duty of care by not choosing a proper service provider, you are exposing yourself to liability.

Preferreds will be tested by the CPA and if you comply, you shouldn’t have a problem with customers.”

It’s a misunderstanding, says Phillips, that most TMC revenue is derived from suppliers. “More than 80% of our revenue comes from clients and 18%-20% we earn from suppliers. Since none of our central costs are passed back through our fees, we use supplier revenue to subsidise our corporate office, R&D etc.”

Gerber concurs: “Having worked in number of TMCs,

while the profit margin is always under pressure, they’ve always made a profit. Certainly in many cases, the profit is greater than the override contributions. If I look at my business now, the contribution of preferred partner income is only 16%, which means 84% of our revenue is from customers. I can tell you where I’m going to focus.”

For Phillips it’s about building a sustainable business model that ensures clients are retained and avoiding the “quick cash”, which in turn eliminates a lot of the “shady deals” out there. “The only time preferreds won’t be in place is when we stop adding value to the end user.”

Gerber believes, however, there’ll never be an industry without preferreds, as it’s a practical impossibility. “We’re a service industry and we’ll align ourselves with people who we feel have our backs covered. If our backs are covered, then by definition so is our customer. The problem with the entire industry

in SA is that we focus on one element of preferreds and that’s the financial kickback. To be honest, yes, it’s nice to have, and most TMCs probably wouldn’t be profitable without these benefits, but the real benefit is felt at source by the customer.

Preferreds shouldn’t have to be whispered about in corridors almost like the swearword of the industry.”

According to Tanner-Ellis, too often corporates don’t focus enough on how they manage travel internally. “If we’re approving a trip it’s more important to ask if it should actually be taking place before we question whether we’re getting the best deal at the point of sale.”

Phillips adds that corporates and TMCs need to be equally responsible for the point of sale. “If companies don’t have a proper authorisation system in place, the choice of supplier will always be dependent on preference and subjectivity.”

Get down to the nitty-gritty!

THE commentary above is politically correct, says independent business travel consultant, Digby Johnson, but when you get down to the nitty-gritty, you see a different picture. “The 20% income indicated by the TMC as ‘preferred supplier’ income does not simply fall from the sky.

Suppliers offer kickbacks to TMCs based on increased business and attaining tactical growth targets.

To attain these targets, the TMC has to influence behaviour within their organisation to ensure the correct ‘flow’ of spend. They certainly guide business or they have an override deal with as many suppliers as possible.”

Let’s not be naïve with reference to travel buyers getting the best deal, he says. “Suppliers have to recover their override/ kickback from the end user so whichever way the cake is cut, there’s no way the price the corporate pays is indeed the best.

As true travel buyers, you have

to make a few assumptions as to the percentile returned to the TMC (alternately you need insider knowledge). For the purpose of this point, let’s assume 8%.

What that means is that for every R5m spent by the corporate with the preferred supplier, the TMC receives R400k: this is over and above the fee paid by the corporate to the TMC for rendering the service. The balance of preferred partnerships seems heavily weighted to the TMCs or is it such that the corporate receives the equivalent value back in ‘favours’ from the supplier?”

He adds: “The webinar concludes that according to the panellists, preferred relationships are more for ‘functional added value’ whatever that may mean.

If preferred means you get preferential treatment, then what does the term ‘primary preferred’ mean? What are the qualifying criteria to become a) a preferred supplier and b) a primary preferred supplier?”

To download the full webinar, visit www.btnow.co.za. Please e-mail kimcochrane@telkomsa.net with any comments.

May 2010 • BUSINESS TRAVEL NOW

5

Power panel

Blues illback

This month’s panel of expertise

It’s a system hated by many yet for some corporates the billback system for the payment of hotel bills still meets their requirements. Max Marx asked our panellists for their views on billbacks and whether they’d like to see the end of them.

I

Linette Mulder, Edcon corporate travel manager

Bronwyn Philipps, HRG Rennies Travel business development director

Jenny Kopsch, Dimension Data SA gm travel: MEA

6

T’S a system hated by many yet for some – primarily corporates – the billback system for the payment of hotel bills meets their requirements.

For years, hoteliers have been trying to find a suitable alternative.

That alternative may finally be here in the form of Travelbuy’s iVoucher (also known as the eVoucher in some circles).

Essentially the iVoucher is an electronic voucher that speeds up payment between the hotel, TMC and corporate account. But whether it will be adopted by corporates is anybody’s guess.

Janet Aldworth, md of Sure Voyager Travel, says many SA corporates prefer the billback system as opposed to giving their travellers corporate credit cards, as they want to keep control of expenditure, which is best done through agents.

But, says Mike Gray, Uniglobe Travel Sub-Saharan Africa ceo, travel agents can’t carry billback costs without recovery any longer.

“The processing, credit and transactional costs will have to be passed on to customers wanting this service.”

Clifford Ross, City Lodge Hotels ce, says corporates are going to have to start utilising corporate credit cards, travellers’ personal cards or alternatives like the new iVoucher system if they want to continue doing business with the hotel industry going forward.

“There’s no reason why South Africa can’t do things the same way they do them elsewhere in the world.”

While billbacks are used abroad, hotel bills are generally paid using

May 2010 • BUSINESS TRAVEL NOW

corporate or personal credit cards, with lodged cards popular in certain markets.

Why do SA corporates still cling to billbacks?

Bronwyn Philipps, HRG Rennies Travel business development director, says although the billback system is outdated in theory, in practice it is not. “There are still many clients who depend on their TMCs to carry funds and make payment on their behalf. Globally the trend has shifted away from billbacks with more travellers now carrying corporate credit cards to settle expenses. The good news is that many of our larger corporate customers are already using or implementing travel portals and self-booking tools at the front-end of the travel cycle. Integrating with back-office accounting and expense claim systems is the next logical step.”

Linette Mulder, Edcon corporate travel manager, says although outdated, there aren’t many other options available except for card in pocket, which “could be a reconciliation nightmare”.

For Jenny Kopsch, Dimension Data SA gm travel: MEA, billbacks work well and she is happy with the system. “There is still a need for billbacks, especially when doing business with B&Bs and guesthouses.”

Philipps adds that the alternatives are more labour intensive and are seen as having higher risks for corporates.

“Providing travellers with cash upfront is labour intensive to reconcile and poses a risk if cash

is lost. Personal corporate cards are often abused and there is reluctance to enforce strict policy around recovery of unauthorised expenses.”

How do corporates benefit from billbacks?

The benefits, according to Mulder, are that billbacks are managed by the TMC and useful where a corporate doesn’t have an account with an establishment. “Billbacks, which are well accepted – even by guesthouses – also enable a 30-day debtors’ account.”

Phillips adds that with billbacks, the TMC carries the debt on behalf of the corporate, which is convenient and aids the corporate with short-term cash flow. “It offers the corporate an interest-free payment cycle, better cash management and the TMC also acts as a single point of contact for the corporate in terms of administration and finance queries. It allows the TMC to analyse accommodation spend in detail, which aids the corporate with supplier negotiations.”

Kopsch says travellers don’t have to have a credit card or cash to settle their account. “We have 30 days to settle the account or sort out any queries that have come up in the meantime.”

What are the challenges around billbacks?

Philipps says billbacks elevate the risk of unauthorised expenditure for the TMC. “From the TMC’s perspective, receiving payment from corporates is often a challenge. TMCs often need

Power panel

to make payment to suppliers before corporates pay and this can negatively impact the TMC’s cash flow. Billback administration is also very labour intensive.”

Mulder adds that billbacks create long time delays when it comes to reconciliation and attract high service fee charges.

Benefits of the iVoucher versus billbacks?

Says Mulder: “The eVoucher will save us money on billback service fees. Our bank account will be immediately debited with the cost of the stay on checkout, which means no delay in reconciliation. With billbacks, reconciliation is normally delayed six to eight weeks before the invoice reaches the TMC who then still needs to invoice us.”

Philipps believes the iVoucher definitely has the potential to streamline the process significantly for all parties. “The fact that suppliers will also be getting their payment upfront for each transaction could also result in better rate negotiations. This system has, however, been in development for a number of years and there appears to be a reluctance from suppliers to implement it.”

Philipps lists further benefits of the iVoucher (eVoucher) system as: • It reduces payment risk for the TMC and supplier, enhancing cash flow for both parties.

• It allows for the removal of traditional debtor management.

• It reduces merchant fees for the TMC. • It ensures visibility of the entire procurement process.

• It reduces costly mistakes caused by manual processes associated with paperwork and reduces paper usage.

Challenges of the iVoucher (eVoucher)?

Philipps says change management around traveller behaviour will be important, as the eVoucher will only clear (in the case of HRG

Rennies Travel and mymarket clients) if the bill at point of checkout does not exceed the amount specified on the voucher. “Any extras will need to be settled there and then by the traveller. This is a discipline not currently in place with many travellers.”

Kopsch wonders how cancellations work with the iVoucher system. “Trying to get refunds if the establishment already has my money seems far more tedious than the billback system.”

How do corporates manage against fraud that could result from billbacks?

Mulder answers that this is achieved by having an online order/invoice matching system whereby only one invoice can be matched to an authorised order.

HRG Rennies Travel ensures upfront that the appropriate authorisation process has been adhered to with regard to bookings, says Philipps. “We have automated this process and our front-end script-based applications assist in ensuring accurate input by consultants with client-specific data. Our mid-office quality control process ensures all billback invoices are scrutinised for policy compliance before the invoice to the corporate is processed. Fraud is not a problem in our environment on the billback system.”

Kopsch says Dimension Data has not experienced fraud due to billbacks. “This could be due to the policies and processes we have in place.”

Do billbacks work in Africa?

Yes, says Mulder, but only in SADC countries where the rand is one to one like in Namibia and Swaziland. “It doesn’t work in other African countries because to billback across borders contravenes exchange control regulations.”

Philipps says most countries offer billback facilities within country, but billbacks across borders in Africa are a challenge due to

Billbacks for Dummies What exactly is a billback?

“The ‘billback’ is used by a corporate who has a commercial arrangement with a TMC to manage their travel. Instead of the corporate employee settling the hotel account at the time of checkout, the account is billed back to the TMC who in turn does the appropriate reconciliation and consolidation before submitting to the corporate for payment.

The TMC then provides the corporate with regular executive information on usage etc.

The benefits for the corporate are around the TMC managing the travel on their behalf. The pitfalls are around the additional cost to the corporate as well as the added complexity in the billing process.” – Danny Bryer, director of revenue management, Protea Hotels.

The A to Z of the billback process • A corporate traveller makes a booking with an agent.

• The agent checks the authorisation and payment process.

• The agent makes the booking.

• The traveller stays in a hotel but doesn’t pay bill on checkout.

• The hotel sends the bill to travel agent.

• The agent reconciles bill and sends it to the corporate.

• The agent settles bill within the payment terms of the supplier.

• The corporate pays the agent.

Source: Bronwyn Philipps

currency differences and withholding tax issues.

“There are other platforms in place to facilitate payment across borders and HRG Rennies Travel facilitates this for many large corporates.” ■

Next month our panellists debate what exactly it means to manage your TMC.

May 2010 • BUSINESS TRAVEL NOW

7

Profile

Putting le the peop

first Jenny Kopsch’s role as travel manager is to ensure her travellers are safe and comfortable, that travel management runs smoothly and that her team as a whole is happy. Kim Cochrane met with her to learn more about how travel is managed at Dimension Data.

E

Pic: tijana huysamen

VERYTHING Jenny Kopsch has done in her working life has been for her three sons.

“I can’t ask for anything more. They’re the reason I get up every morning and the reason I go the extra mile.”

For most of her career, Kopsch has been a single mother and she’s been driven by the need to provide a good home for her boys Kevin (24), Brian (23) and Richard (20).

She emphasises, however, that if hadn’t been for Dimension Data she wouldn’t have been able to do it.

Speaking with Kopsch, who is now gm travel: Middle East & Africa (MEA) for Dimension Data, at the company’s client experience centre at the Campus in Bryanston, it becomes clear her focus is on people, whether they be family, colleagues or the travellers she manages.

“My role as travel manager is to ensure travellers are safe and comfortable, that travel management runs smoothly and that my team as a whole is happy. I’m very lucky, as I have a great team who works well together.”

Her team includes internal staff members who form part of the travel office in addition to an HRG Rennies Travel in-house agency. She says of all the travel staff employed by Dimension Data, only one has a travel background. “What I look for in my team members is that they pay attention to details, are outgoing, are prepared to put in some strange hours and that they have an understanding of the world.

Jenny Kopsch’s favourite holiday destination is Thailand. “I’ve visited quite often and what is great is It doesn’t help if I ask where Berlin is and they that my children also love it so it means we can all go together as a family. It’s a dream destination.” say it’s in the Free State.”

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May 2010 • BUSINESS TRAVEL NOW

Profile “I have the senior management support I need. Their belief is that I run travel and if I can’t do it, then I’m in the wrong job. I don’t have someone sitting on my shoulder all the time. If I phone them about something I’m not sure about, they follow up and back me.”

Kopsch is a trained beautician but because she married very young at 20 years and had her three children during the following few years, she never practised in the field. In those days, beauty therapy wasn’t what it is today and there wasn’t a lot of money in it, she adds. “As a single mother, I wanted a home for my children and needed a career that would pay better. I had to learn quickly because I was going to make this happen for us.”

Where it started

In October 2008, Dimension Data partnered with HRG Rennies Travel.

What makes their partnership model interesting is that while Rennies retains responsibility for its in-house agency’s operations and systems, Kopsch manages the in-house agency staff members. She says this has changed the whole dynamic within the two teams as it made them one team under a single management structure.

It also works, she adds, because she understands the company’s travel requirements in a way a TMC never could. “While a TMC may approve leave for a consultant over a long weekend, I know what work we have lined up for that Friday afternoon. The TMC may assume it’s quiet, as we’ve only processed ten tickets that week, but what they don’t know is that we’ve got a great number of tickets to be issued on Friday and that the team will be here late.”

Another benefit has been increased team buy in and commitment. “It doesn’t help me if a TMC stipulates that all staff have to stay in the office from eight to five. Sometimes if I know they’re working late in the next few days, I’m happy to let them go home early if it’s quiet. In this way I get buy in from them and their spouses. If I’m asked: ‘My child’s got her school concert, may I go Jen?’ Absolutely.

Family is very important to each of us and we need to remember that.”

Buy in is also important for Kopsch, who reports to Dimension Data’s chief financial officer: MEA.

Kopsch has been with Dimension Data for 12 years. Ten years ago, she offered to tackle travel in her division simply because it interested her and she was looking for the extra stimulation. “I was a buyer and I was bored.”

People were doing what they wanted at the time with regard to travel and she soon found there were ways to streamline processes.

Once she’d increased productivity and decreased travel spend, word spread and other divisions started approaching her for help with their travel requirements.

She remembers one incident that highlighted the need for someone to be permanently available for travellers: “A team of travellers got snowed in while in London so they missed Christmas with their families. I organised for the wives and children to come to our offices so they could speak to Daddy on the phone without worrying about the cost. I brought in snacks and drinks.

It was hard for them. People realised then that it was important not to have a policeman but rather to have someone looking after travel and the travellers.”

When she was later approached to look after all of Dimension Data’s South Africa travel, she doubted her ability because she thought she didn’t know enough about travel.

“I told myself either I was going to do this and make it work or I was going to walk away and look for something different. I didn’t want to leave the company so I reminded myself if they believed I could do it, then I had to believe in myself.”

Kopsch is open about not knowing everything about travel. “I

can’t work a GDS (global distribution system) for example but I can read the screens. I have no problem asking one of the girls or guys if they can help me with something.

They’re happy to show me and it gives them a sense of achievement by adding value to the team.”

It’s all about the project Most of Dimension Data’s travel is project driven, which means preferred supplier deals are continually re-negotiated on a project basis as requirements change, she says.

“Our travel is not point to point.

Sometimes a traveller visits ten different countries in a trip! Even if we travel into Angola, the traveller is likely to visit Nigeria and Ghana as well before returning home.

It’s about multiple airlines and segments. A great deal of our travel is last minute.”

How it works is that all travel comes through the travel office where the team checks that travellers are within policy, that they have the correct visas and inoculations and that they’ve got a basic understanding of the country they’re visiting. “Often we ask

the travellers to give us feedback once they return, which helps us.

Bookings for low-cost carriers also happen in the office.”

Visas are the biggest challenge, she says, so the team keeps a database of the travellers that incorporates information about their current visas, copies of passports, etc. “This helps us determine who can travel at the last minute so we can assist the different project teams and divisions when selecting their teams.

The company has maintenance agreements and stipulated turnaround times with clients so if systems go down, it doesn’t help the client if we can’t get a traveller on a plane for the next 24 hours.”

Another difficulty related to project-related travel is finding appropriate technology to streamline processes. Kopsch hasn’t found a solution yet. “An employee works for a division but may not always travel for that division. So systems that enable authorisations via cost centre don’t work for us, as an example, because the traveller may be travelling for someone else’s cost centre, or the costs are being split between various

Continued on page 10

May 2010 • BUSINESS TRAVEL NOW

9

Profile

Continued from page 9 different cost centres. Of the systems we’ve assessed, they’ve required manual intervention in this instance, which defeats the purpose.”

Currently, the top three destinations to which Kopsch is managing travel are Angola, Nigeria and the Middle East (incorporating Saudi Arabia and the UAE where the group has offices).

“We’ve also got offices in Algeria, Botswana, Congo, the DRC, Gabon, Ghana, Kenya, Malawi, Mauritius, Morocco, Namibia, Tanzania, Uganda and Zambia.”

Due to the expanding regional footprint, Kopsch says Dimension Data is working on an initiative in partnership with HRG Rennies Travel to bring all of these travel spends into an integrated HRG spend to benefit from improved negotiating power and enhanced management reports. Once we’ve consolidated the spend, we’ll decide who will be responsible for it and reassess policies and procedures.”

Lessons learned from travel

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May 2010 • BUSINESS TRAVEL NOW

One team with a great FIFA World Cup spirit. Front: Thurusha Moodley, Dimension Data travel coordinator (left) and RezaAnne Royeppen, Rennies Debtors. Middle from left: Donne Buijs, Dimension Data travel co-ordinator; Jenny Kopsch, gm Travel MEA; Francois Badenhorst, Rennies VIP consultant; and Kerri Rogers, Rennies travel consultant. Back from left: Blair Shelver, Rennies travel consultant; Seema Behareelall, Dimension Data Debtors; and Lisa Shaw, Dimension Data travel co-ordinator.

Kopsch says for this reason, it’s important for travel managers to have patience with their travellers who travel because it’s their job and not because it’s their passion. ■

Fact File

very personal thing, Kopsch says there are many people who don’t want to be travelling.

“If you understand that the person who is travelling every other week is not having fun, and you take this into account when he gives you grief about the upholstery in the rental car and the pillows on his hotel bed, you realise it’s not necessarily because he’s difficult but because he’s had enough. He’s weary about going backwards and forwards to the same place to see the inside of an office or boardroom every day, week in and out, without experiencing the country. His home life is suffering. He doesn’t necessarily want to be in the air again, packing and repacking. He wants to be at home with his wife and kids, or his dogs or cats.”

Preferred suppliers: • HRG Rennies Travel • Kulula.com • 1time • SAA • Air Namibia • Avis • Europcar

Pic: tijana huysamen

In terms of personal growth from her role, Kopsch focuses on her love of travel and people. “The company can send me anywhere they like, I just want to see the world. I’m happy to have furniture that’s holding itself together if I can travel.”

She doesn’t have a favourite experience.

“Every country has something special to give. In Ethiopia, the one thing I learned from my young driver is that if you have nothing materially but you have faith and respect for others, you have everything. The Ethiopians have everything.

Their pride in their own country is unbelievable.

My driver offered to show me the best part of Ethiopia. It was about 17h30, the sun was going down, and he took me to a running track.

Because the people believe there are a lot more Haile Gebrselassie’s out there, they are running, from tiny to 105, with shoes, without shoes, with running shorts, with long pants.

With whatever they own, they’re running. I stood watching and the pride in this man as he believed they had more world champions practising at the track will be with me forever.”

As another example, during a gap between meetings in Ghana, Kopsch’s driver took her to a fishing harbour. “I don’t know how many tourists go there but I’ve never seen so many people working, again from tiny to 105. If you can’t stand, you’re sitting stitching nets. If you’re little, you’re sorting fish into different buckets. There’s such camaraderie as everyone does the job. Then he took me to a djembe drum factory where they showed me how they carve the wood, stretch the skins, paint the drums, the different sounds, the different everythings. And then I go to Rome and the Colosseum. It’s phenomenal.”

So with her understanding that travel is a

How to

How to deal with content fragmentation

Negotiate, negotiate, negotiate!

N

EVER underestimate the power of negotiation, say industry players when asked about content fragmentation that undercuts corporate negotiated rates.

“Negotiate, negotiate, negotiate,” advises Linette Mulder, Edcon group corporate travel manager. “I do it on my terms… with free changes and extra add-ons. I believe the best way to deal with this challenge is to make corporate rates 100% better than online deals.”

She adds the most important aspect is open and constant communication with employees to make them understand that the corporate negotiated rate does not necessarily cost more as it offers important features that online products do not. “With online shopping, you pay for every change and more often than not you end up paying double or triple the original ticket price.”

Jim Weighell, Sure Corporate manager, says it’s important to negotiate rates that align with a company’s travel requirements and patterns. “Internet offers that undercut corporate rates are most often short-term tactical offers and heavily restricted. Airlines and GDS companies conclude full content agreements whereby GDS and web content is exactly the same, but there will be some occasions where undercutting may occur.”

One way of dealing with the issue, he says, is by implementing a good system that provides clients with live price and inventory information including web fares, public GDS fares and negotiated corporate rates. “We have a system that presents all this data on a single screen with full bookings and payment authority for corporate travel arrangers.

The TMC staff are in support and provide quality control checks on all transactions.”

According to Themba Mthombeni, Duma Travel

and internet offers that undercut corporate negotiated rates By Liesl Venter

executive chairman, first and foremost corporate agreement targets with suppliers should be realistic and a good travel policy should dictate actions.

“Fragmentation has the effect of watering down achievements on the targets set with corporate agreements. This can happen because of a number of reasons such as the individual traveller having loyalty points with a supplier other than the one stipulated by their company, or the designated supplier not having coverage in all the destinations to which the client travels.”

With a good online booking tool in place, most corporates should not see too many issues arising from content fragmentation and internet offers, believes Mulder.

She adds: “A corporate rate, once negotiated, is always the same, as long as there are seats on the aircraft whereas on the website, this may not be the case.”

According to Weighell, the underlying issue to the debate remains the belief that the ability to purchase online has simplified corporate travel. “This is incorrect; the multi-channel environment has actually made the range of options greater and thus more complicated. The key attraction of the internet is its enabling facility.”

Corporate travel management is inherently complex because each trip involves multiple products, distribution channels, highly fluid pricing and propensity for change after purchase.

Mthombeni agrees that shopping online has value, but for a big company with large volumes it can be treacherous. “It is critical the buyer understands the rules of each ticket purchased and more often than not this is not the case.”

So while industry experts agree that travel product purchasing is simple and that anybody can do it these days, it does not mean travel management is too.

How not to be undercut – some tips • “Know your product. Know your market. Stand your ground to the airlines/suppliers. Negotiate at your terms.” – LM • “The supplier strategy should include an online booking component and provide an infrastructure to ensure the online component is managed in a structured manner. Corporate agreement targets set with suppliers must be realistic and take into consideration the online travel thresholds. The reporting system must track performance

on supplier agreements.” – TM • “Decide whether price or fare flexibility is more important.

Negotiated rates are not necessarily the lowest rates, but they offer best value in relation to your company’s travel requirements. Whilst you can’t guarantee your corporate rate won’t be undercut, identify a reference point in terms of fare rules against which to measure your rate. Include a lowest logical fare element in your travel policy.” – JW ■

May 2010 • BUSINESS TRAVEL NOW

11

Insight

Ge

d e e p s o t up t

your

duty

of care

obligations A hot topic of discussion presently is the 2009 White Paper published by International SOS that explores employers’ duty of care obligations as they apply to employees on cross-border assignments – a topic mostly neglected in literature on employment matters despite its significant implications. By Natasha Tippel.

T

HE White Paper ‘Duty of Care of Employers for Protecting International Assignees, their Dependants, and International Business Travellers’, published by International SOS and authored by Dr Lisbeth Claus, professor of global human resources at the Atkinson Graduate School of Management at Willamette University in the United States, has caused quite a buzz in the SA travel procurement industry.

The guide provides employers and managers with the information and tools they need to protect their most important assets – their employees.

Most employers and travel managers will say they are aware of the numerous risks their business travellers face when travelling abroad but, as Claus notes, are organisations fully aware of how these risks can affect their duty of care? What health, safety and security threats might an employee encounter in an unfamiliar environment? What is the employer’s legal, fiduciary and moral duty of care liability to the employee?

In essence, what Claus has found in her research, is that a full view of this important component has fallen off the radar screens of some organisations.

“There are always those ‘black

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May 2010 • BUSINESS TRAVEL NOW

swans’ in corporations who believe they don’t need travel insurance or risk policies because nothing will ever happen,” says Felicity Meyer, Ernst & Young travel manager.

“South Africans especially think they are bullet proof. As South Africans, we are more prone to thinking about security issues but somehow these do not filter through into our policies. You would think a duty of care policy is one of the most obvious policies to have in place, yet corporates don’t think about such things until they are confronted with an issue or are forced to have a scary conversation around duty of care responsibilities.”

Meyer hopes the White Paper will inspire further discussions and dialogue around the issue, creating awareness and hopefully propelling corporates into action. “Of the battle, 90% is awareness. No one in this industry can walk away from the conversation without thinking about the responsibility they have for their company’s human capital because the consequences of ignoring such a conversation are dire. It only takes one mistake for the consequences to be fatal.”

Jim Weighell, corporate manager of Sure Travel, agrees: “The paper serves as a reminder that we should ‘expect the unexpected’ when

employees travel on duty and have a plan in place where an identified response team is aware of their actions in the event of an incident.”

Companies with long-term ex-pat staff overseas will likely have a strong risk management and welfare plan in place, notes Weighell, whereas companies whose employees are predominantly away on short trips are likely to be less prepared.

Awareness is often also industry specific. Companies that work and deal in high-risk environments are immediately more educated about their duty of care responsibilities towards their employees. “Although there are specific industries who are way more advanced due to the nature of their business, such as mining and construction, who take safety very seriously in their day to day working lives,” notes Claude Vankeirsbilck, chief sales officer of Tourvest Travel Services. But many companies have not even considered such programmes.

Challenges The biggest challenge in developing and implementing an integrated risk management strategy is getting management and travellers to take such policies seriously.

Insight

There are always those ‘black swans’ in corporations who believe they don’t need travel insurance or risk policies because nothing will ever happen.

– Felicity Meyer, Ernst & Young Risk management in so far as travelling staff is concerned is not usually a high priority, says Weighell. “Often this is left to the travellers on the basis that staff are expected to act responsibly and to use common sense.”

In the current cost-sensitive environment, the additional effort and expense involved in risk management may also act as a disincentive to action. “The challenge will be to get leadership to buy in to such programmes, a programme that will require investment (financial and resources) and which may not be top of mind right now,” says Vankeirsbilck. “But now is the time to start planning and strategising such a programme, as there is legislation around the world already in place which each company travelling overseas needs to understand and comply with, never mind the pending SA legislation in this respect.”

More on the White Paper...

So how does the employer ensure that there are procedures and policies in place?

Strategy The White Paper recommends that employers develop an integrated and strategic risk management strategy for international business travellers and assignees, following these steps: • Plan: Assess the risk Plan strategically Develop policies and procedures • Do:

Manage global mobility Communicate, educate and train your employees Track and inform your employees Advise, assist and evacuate when necessary

• Check: Ensure employee compliance Assess through regular surveys Identify privacy concerns and keep personal information confidential Control and analyse The paper also advises that the complexity of meeting the standards imposed by duty of care makes it inevitable that employers utilise the services of companies that provide international security and medical assistance for support.

The White Paper covers the topic of duty of care from several perspectives. Firstly it focuses on a global rather than a specific geographic viewpoint and emphasises the diversity of treatment in multiple countries, whether they are developed or emerging markets. This section encompasses a review of pertinent legislation and case law summarising 36 cases in Australia, Belgium, Canada, France, Germany, the Netherlands, Spain, the UK and the USA. Also included is a review of how the International Labour Organisation (ILO) conventions and the European Union (EU) directives support duty of care.

Secondly, it pulls together and connects duty of care responsibilities from different business areas, functions and roles in an organisation. Various decision-makers (such as senior management, managing directors, general secretaries, travel managers, etc.) share responsibility for duty of care, but sometimes objectives clash. There is a lack of awareness of the full extent of their international duty of care, as well as a lack of information that would help support it.

Thirdly, it brings attention to the topic from both a legal and cost-benefit analysis perspective, and also points out that duty of care is a moral and ethical matter, and therefore an integral part of a company’s social responsibility.

For a full copy of ‘Duty of Care of Employers for Protecting International Assignees, their Dependants, and International Business Travellers’, published by International SOS, contact: dutyofcare@internationalsos.com or visit www.internationalsos.com. ■

May 2010 • BUSINESS TRAVEL NOW

13

On the radar

Far

Eastern carriers

With rapidly growing economies, Asian countries continue to be increasingly important business destinations for South Africans. As a result, Far Eastern airlines have had to step up to cope with the heightened demand. By Sue Lewitton.

I

NCREASED traffic in airports throughout the Far East has meant that major infrastructural changes needed to be made. Many airports throughout the region have upped their game through new terminals and piers as well as improved ground-handling operations.

Hong Kong International Airport (HKIA)

Thai Airways SA flight delayed THE Thai Airways relaunch of its non-stop Bangkok-Johannesburg flights has been delayed to June 2 because of difficulties in securing a permit from South African authorities.

The airline originally dropped the route in January 2009 as a result of decreased passenger numbers. The new service will be operated four times per week, with a capacity of 292 in economy class and 30 in business class. The airline also plans to apply for rights to fly to Cape Town.

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May 2010 • BUSINESS TRAVEL NOW

HKIA launched two new facilities in January this year. The SkyPier is a new cross-boundary ferry terminal and the North Satellite Concourse is equipped with ten bridge-served parking stands for narrow-bodied aircraft.

Marvin Cheung Kin-tung, chairman of the Airport Authority Hong Kong, says: “The SkyPier efficiently conveys passengers travelling between the Pearl River Delta and the world via HKIA, while the North Satellite Concourse enables about 98% of our passengers to embark and disembark aircraft in an indoor, weatherproof environment.”

Singapore Changi International Airport First- and business-class passengers can now enjoy a higher level of comfort and luxury during check-in

at Singapore Changi Airport Terminal 2. Singapore Airport Terminal Services (SATS) and Changi Airport Group (CAG) have just unveiled the new SATS Premier Check-in Lounge at Changi’s Terminal 2 Departure Hall for passengers of airlines served

by SATS. This value-added service is complimentary to airlines served by SATS at Terminal 2. Presently participating airlines include Air India, All Nippon Airways, Etihad Airways and Korean Air, with more airlines expected to come onboard.

The opening of the new lounge follows the success of the first SATS Premier Check-in Lounge in Changi Airport’s Terminal 1.

At the end of last year, the airport introduced a new taxi management system to improve the distribution of taxis by matching taxi supply with passenger demand. This has resulted in a reduction in the average queuing time for passengers.

The airport has also introduced several other changes to improve passengers’ experiences of Changi. These include the introduction Changi Rewards, a programme to reward the airport’s shoppers and diners who earn Changi airport vouchers for each dollar spent on retail, food and beverage in the airport. The airport has also opened an aviation gallery in Terminal 2.

On the radar

New-look cabins for Singapore Airlines

The new SATS Premier Check-in Lounge at Changi’s Terminal 2 Departure Hall.

Suvarnabhumi Airport (Bangkok) The direct rail service to/from Suvarnabhumi Airport has officially launched operations. The 28km Airport Rail Link connects Suvarnabhumi Airport in the adjacent Samut Prakan province and the City Air Terminal in Bangkok’s Makkasan area.

The Airports of Thailand also plans to construct a third runway, along with a domestic passenger terminal building at Suvarnabhumi Airport. It is hoped that work will be completed within the next three years.

SINGAPORE Airlines has introduced new cabin products on some of its Boeing 777-200 aircraft, as well as some of its fleet of A330-300s.

The refitted B777-200 aircraft now operate the Beijing, Mumbai, Delhi, Bangalore, Hong Kong and Chennai routes. The A330-300 aircraft operate selected routes in the Middle East, West Asia and North Asia and will be progressively deployed on other regional and medium-haul routes later this year as part of the airline’s ongoing product enhancement efforts.

The B777-200s have been configured in a two-class layout with 38 business class and 228 economy class seats. The A330-300s are also configured in a two-class layout with 30 business class and 255 economy class seats.

Business class on both aircraft now feature leather, incline lie-flat seats with personal

partitions and advanced control panels that enable the customer to personalise seating preferences or select from various preset options. A six-way adjustable headrest and lumbar support will provide maximum ergonomic support for a more comfortable rest.

The economy class cabin on the A330-300 is laid out in a 2-4-2 configuration, featuring the new-generation Singapore Airlines economy class seat, currently also available on the Airline’s Airbus A380 and B777-ER aircraft. They are ergonomically designed to increase comfort, personal space and legroom. Seats also feature the new KrisWorld, Singapore Airlines inflight entertainment system and iPod and iPhone connectivity.

Malaysia Airlines boosts medium-haul fleet MALAYSIA Airlines has just placed a firm order with Airbus for 17 A330 widebody aircraft.

Deliveries of the aircraft will begin in the first half of 2011.

The new aircraft will seat 283 passengers in a two-class layout and will eventually become the mainstay of Malaysia Airlines’ medium-haul passenger fleet. It will be used on services to

destinations across the Asia-Pacific region, as well as to the Middle East.

The airline also has six A380s on firm order for future operation on its busiest long-haul routes. ■

May 2010 • BUSINESS TRAVEL NOW

15

Kigali

Destinations

Rwanda

Kigali has come of age. Business in Rwanda is growing and many new developments are emerging across the city. Natasha Tippel takes a closer look...

R

WANDA continues to see a growing number of corporate visitors to the country, the majority from African countries. In 2009, 341 718 travellers visited the region for business, conference or official purposes. Of this total, 90,9% of travellers were from other African countries.

“Rwanda has played host to several regional and international conferences over the past year, which has meant increased exposure for Rwanda as a destination,” says Joan L.I. Mazimhaka, manager of the tourism marketing division for the Rwanda Development Board.

“We are noticing that more travellers are interested in the country’s cleanliness and devotion to environmental protection,” she adds. “One trend in corporate travel is the need for business travellers to reduce their carbon footprint as they travel the world and since the country is already a leader in the region in terms of environmental protection, we are preparing to cater our corporate and tourism packages to fulfil this need. Rwanda seeks to be a conference tourism hub over the next few years and while visitor numbers slightly reduced (to an extent due to the global financial crisis) the numbers are growing at a steady pace.”

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May 2010 • BUSINESS TRAVEL NOW

But despite steady growth in the region, Kigali still has a far way to go in terms of development. “The limited number of reputable accommodation is a challenge in Kigali, with only two hotels being of international standards, namely Kigali Serena and Laico Umubano Hotels,” notes Sanele Dube, independent consultant of Tribe Communications. “Partnering with a good ground handler has also been next to impossible. This restricts us in as far as what and how much we are able to offer our clients for this destination.”

Dube believes, however, that the implementation of the East African Community (EAC) Common Market in July will make a significant change to corporate travel. “This will boost business, as it will allow influences from member states (Burundi, Kenya, Rwanda, Tanzania and Uganda) to make a positive impact on each other’s economies. This will be achieved mainly by eliminating stringent immigration policies and relaxing trade laws between member states. One-stop border posts are already being established between Uganda and Rwanda and also between Uganda and Kenya.”

Mazimhaka says there are plans to build the capacity of Rwanda’s local hotels to cater more

to the corporate traveller. “In five years, Rwanda hopes to be the leader in conference tourism in the region. We’d like to see the presence of a national convention board responsible for the promotion and coordination of all conference, meetings and events, linking business travel to tourism.”

RwandAir relaunches Kigali flights RWANDAIR formally relaunched its direct flights between Johannesburg and Kigali in March. The four weekly, direct flights (Monday, Wednesday, Friday and Sunday) maintain daylight operation with departures from Johannesburg to Kigali at 19h00 while the return flight from Kigali departs at 14h30.

Two 50-seater CRJ 200 aircraft will service the route. Meanwhile, RwandAir plans to expand its fleet to a combined ‘owned, operated and maintained’ fleet of six aircraft by 2013. The carrier is also keen on deploying more capacity and increasing its frequencies on the Johannesburg-Kigali route with the expected acquisition of a B737-800 in May this year.

Destinations

Kenya Airways rejoins AFRAA KENYA Airways (KQ) has rejoined the membership of the African Airlines Association (AFRAA) after a six-year hiatus.

“Six years ago, Kenya Airways withdrew from AFRAA due to principled views on certain issues. Due to the change in AFRAA leadership and a commitment to address the pertinent issues, Kenya Airways is pleased to come back to this association,” said Dr Titus Naikuni, group md and ceo of the airline. He further called on the association leadership to maintain accountability of its operations.

Kenya Airways Southern Africa area manager, Rosemary Adogo, said she believed it was a step in the right direction and looked forward to a strong working relationship with the organisation.

Noting an ‘all-talk, no-action’ culture that had bedevilled the association, the new secretary general of AFRAA, Nick Fadugba, said very little had been achieved

by AFRAA in the past. He committed to the airline that the association would actively seek collaboration with aviation training institutions in Africa to generate much-needed synergy.

KQ flies three times daily to Kigali International Airport.

Rezidor moves into Rwanda THE Rezidor Hotel Group has added another new country to its portfolio with plans to open the Radisson Blu Hotel and Convention Centre, Kigali.

The property, featuring 292 rooms, is scheduled to open in 2012. “This signing symbolises the new optimism investors have in Rwanda and further underlines our strong commitment to Africa – this emerging and promising continent is one of our key areas for future business development”, comments Kurt Ritter, president and ceo of Rezidor.

The new hotel will form part of a mixed-use development in the Rwandan capital. Besides 292 guest rooms, services will comprise six food and beverage outlets, a spa and fitness centre, an outdoor swimming pool and boutique retail shops. The adjacent convention centre will have a net floor area of 32,000 sqm, which includes a multi-purpose arena with a capacity of up to 2 600 delegates, seven sub-divisible conference rooms and ten smaller meeting rooms.

The project is located between the city centre and Kigali International Airport.

Kigali Serena Hotel’s ‘suite’ offer UPGRADE to a luxurious suite at the five-star Kigali Serena Hotel and get up to 15% off the rate. The special includes breakfast as well as a 30-minute complimentary head and shoulder massage and WiFi access. The suite must be booked and paid for seven days in advance. Offer is valid until June 30.

The Kigali Serena Hotel is located in central Kigali, 10km from the international airport. The property comprises 148 rooms, all with air conditioning, satellite TV and WiFi access.

Other facilities include a restaurant, café and bar, executive lounge and bar, swimming pool with a pool deck, health club, conference and social events centre, business centre, travel desk, taxi and limousine service, and gift shop.

Did you know?

THE Rwanda Investment Forum 2010 will take place in Kigali from May 10-11. This will be the first investor event of this magnitude to take place in Kigali. The forum will afford business opportunities to various sectors including banking and financial services, mining and tourism sectors to name a few. ■

May 2010 • BUSINESS TRAVEL NOW

17

Deal detective

Linda van der Pol, Travelinfo’s editor, is our Deal Detective, bringing you great specials from Travelinfo, the online travel information system in daily use by travel agents all over SA. Just book through your TMC and tell the consultant it’s a Travelinfo special. To get connected, e-mail lindav@nowmedia.co.za.

Pic: istockphoto.com

Top10 specials

Pic: istockphoto

Serendipity Tours. Special offer – seven-night packages from R11 130 pp sharing.

Price is inclusive of return flights (JNB-Kuala Lumpur-Penang-Kuala Lumpur-JNB), airport taxes, return airport-hotel transfers, two nights’ accommodation at the Novotel City Centre, five nights at Paradise Sandy Bay, daily breakfast and R3 million travel insurance for passengers under 65 years.

Offer expires September 30.

.com

1. MALAYSIA

sharing. Special from R11 595 pp e ar es taxes, ag ck Pa esburg, airport Jetstar Tours. fares ex-Johann air portrn air tu d re an of l, e te is inclusiv a four-star ho in n io at and od m 30 m able until May ten nights’ acco . Rates are avail able rs fe ail ns av ur tra t to or hotel-airp ber 30. Full-day em pt Se to res 1 fa st rson. Add-on again from Augu of R900 per pe st co a at d an Isl to Phi Phi o available. d Durban are als ex-Cape Town an

2. PHUKET 3. KWAZULU-NATAL

Best of KZN. Three-night special at the four-star Fugitive’s Drift. Rates are from R1 400 pp per night and include English breakfast, buffet lunch, five-course dinner, tours and taxes.

Rate is valid from August 9 to 31.

Pic: istockphoto.com

4. LADYSMITH, KWAZULU-NATAL

Game Plan Afri-ventures. Last-minute Inhlaba Lodge special. Rates are from R615 pp sharing and R705 single. Offer includes full-board accommodation and a game drive. Offer expires May 31.

5. MAURITIUS

The Holiday Factory. Winter Special – valid until September 30. Seven-night packages are from R9 300 pp ex-Johannesburg and Durban and R10 550 ex-Cape Town.

This includes return flights and four-star accommodation on an all-inclusive basis (breakfast, lunch, dinner and selected drinks). Kids stay and eat free. Price does not include airport taxes, which are about R1 850 ex-Johannesburg/Durban (direct flights) and R2 500 ex-Durban and Cape Town. Airfare surcharge applies for travel between June 11 and July 13 and again from September 20 to 30.

6. MOZAMBIQUE

May 2010 • BUSINESS TRAVEL NOW

Protea Hotel Fire & Ice! Cape Town. Special offer until June 9. Rates are from R448 pp sharing per night and R792 per room per night. Offer includes free WiFi and a 50% meal discount voucher. The offer is subject to a minimum stay of three nights.

9. VICTORIA FALLS

Mozambique Tourism. Pemba Beach Hotel & Spa is offering special offers until August 8. Three-, five- and seven-night packages cost R4 690, R6 570 and R8 450 respectively. Rates include return flights ex-Johannesburg, airport-hotel transfers, accommodation on B&B basis, non-motorised water sports/equipment and emergency evacuation. Rates are pp sharing.

Rates do not include airport taxes.

1Time Holidays. Three-night packages are from R3 560 pp sharing. This includes return flights ex-Johannesburg to Livingstone, all taxes, return airport/hotel/cross-border transfers, and accommodation at the Kingdom Hotel or Elephant Hills Hotel in Zimbabwe including breakfast and a sunset cruise. Offer is valid until May 31 for SA residents only.

7. ZANZIBAR

Southern Sun Hotels. Opening special at the StayEasy Pietermaritzburg Hotel – rate is R799 per room and includes a free continental breakfast. Maximum three guests per room.

Rate is valid until September 2010, but excludes FIFA World Cup period. Weekend rate is R675 per room until May 31. ■

African Shores. Seven-night packages from R7 800 pp sharing. Rate includes return flights ex-Johannesburg to Zanzibar, taxes, return airport-hotel transfers, as well as accommodation with breakfast and dinner. Fully inclusive packages are also available. Offer expires May 31.

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

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8. CAPE TOWN

10. PIETERMARITZBURG

New option ADVERTORIAL

StarCite to assist buyers

with MICE programmes

I

T is not unusual for companies to spend anything between 10% and 30% of their total travel spend on meetings and events. Typically this spend has been seen in isolation from the corporate travel programme, however, corporates today are becoming increasingly aware of the advantages to be gained in incorporating the MICE (meetings, incentives, conferences, events ) component of their travel spend into their travel procurement strategies.

CWT SA is well positioned to assist corporates in this regard, advises national sales and marketing manager, Ingrid von Moltke.

CWT Meetings & Events is a specialised department focused on providing corporates with a complete end-to-end solution in the

management of their MICE programmes.

“From a menu of services, which includes conference management, incentive and destination management, special events and corporate meetings and seminars, CWT Meetings & Events has the expertise and hands-on experience to assist corporates in maximising this area of their travel portfolios.”

She adds: “As in the field of corporate travel management where CWT employs superior technologies, CWT Meetings & Events will shortly be implementing the leading online meetings management platform, StarCite, to address all phases of the MICE lifecycle – plan, budget, buy, attend, measure – effectively assisting CWT and the corporate buyer to strategically manage and automate all elements within their MICE programmes.” ■

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May 2010 • BUSINESS TRAVEL NOW

19

Hotel brands on the radar

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! s s e n i s u r b fo Hoteliers urge corporates to continue travelling over the 2010 FIFA World Cup period. Natalia Thomson takes a look at this and other developments currently impacting the hotel brands sector.

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OUTH Africa won’t come to a standstill because of the soccer so corporates shouldn’t be afraid to pack their bags and travel!

That’s the word from City Lodge Hotels ce, Clifford Ross, who is encouraging corporates to travel over the 2010 FIFA World Cup. “Matches are not being played in all host cities on every day of the week, so there will be accommodation available. Cities such as Bloemfontein, Nelspruit, Polokwane and Rustenburg have no games after June 26 so it will be business as usual from then. East London, Kimberley, Richards Bay, Potchefstroom etc. are not host cities, so therefore all rooms are available for the full period as they would normally be, so again it’s business as usual.”

Ross says City Lodge has opened its website for individual and corporate bookings and rooms are available on a first-come-first-serve

basis. “Planning for travel should be done around the soccer schedule and there will be no problems with availability of rooms.”

Andrew Merrill, gm The Royal Palm, agrees but says planning and early booking will be critical. “Many properties will have availability over the World Cup period, yet booking early is the key. Travel should be uninterrupted through careful

There have been problems with availability, says Anthea Hurly, Liberty Group Procurement travel manager, and this may have deterred corporates against travel over this time. “Our policy during the World Cup is a moratorium on travel but we will have travellers who have to travel over the period and we’ll then pull out all the stops to try to accommodate them.”

Matches are not being played in all host cities on every day of the week, so there will be accommodation available.

- Clifford Ross planning around matches and peak periods. Many properties are already offering specials over this time, as FIFA (Match) releases are coming to fruition and bookings have not been as great as anticipated.”

While there are repeated calls from suppliers for travellers to continue travelling over the World Cup, travel agents believe the prohibitive cost of travelling will deter travellers.

Says Tourvest Travel Services ceo, Morne du Preez: “No doubt the opportunity increases now to not have a total standstill on corporate travel, but all corporates make plans in advance based on the information that was available to them. We have a number of corporates who have put embargoes on travel in place already and have forced their staff to take leave.

“To now expect corporates to make significant changes with 50 days to the World Cup is unrealistic.

The one positive aspect is there is always travel that needs to take place and at least now this will be made possible and hopefully not at ridiculous rates.”

Corporate manager of Sure Travel, Jim Weighell, says balancing availability of domestic hotel rooms over the period, along with flights and car rental will “take more time than normal”.

Rate squeeze has ripple effect By Max Marx FIVE-star properties have been putting rate pressure on fourstar properties by significantly discounting rates in the past few months, according to hoteliers.

Clifford Ross, City Lodge Hotels ce, said five-star hotels in particular were feeling the effects of the recession on occupancies and rate pressure was being applied on lower star gradings through rate deals. He said these were now encroaching on the four-star market.

The four-star Peech Hotel in Melrose, Johannesburg has been 20

forced to discount its rooms because of rate pressure applied by five-star hotels, according to gm Tarryn Scheuble.

“As a small boutique hotel with only 16 rooms, to constantly discount our room rates to remain competitive is not sustainable. Some five-star hotels have been selling their rooms online at a quarter of the price they usually sell them for and the rates are at times lower than our corporate rates.”

The four-star Quatermain Hotel in Sandton has also lost business to

May 2010 • BUSINESS TRAVEL NOW

five-star hotels in the Sandton area which have been discounting their rates rather substantially, according to the hotel’s gm Rosey Chilewitz.

She added that most four-star B&Bs had also been impacted, especially with respect to their corporate clientele who had opted to stay in five-star establishments to get a five-star room at four-star rates.

Roy Davies, gm of the four-star Vineyard Hotel & Spa in Cape Town, said while the hotel experienced rate pressure from the five-star market for a short period at the

start of the recession, it was not something the Vineyard was seeing now.

Brett Dungan, Fedhasa’s ceo, expressed concern over what was to come after the World Cup. “I have a feeling it’s going to be very quiet. If hotels are feeling the pressure now, even while there’s demand from the various interest groups involved with the World Cup, what’s going to happen when those interest groups are no longer here?”

Continued on page 22

On the radar

May 2010 • BUSINESS TRAVEL NOW

21

Hotel brands on the radar

Continued from page 20

BAR still irks corporates BEST Available Rate (BAR), while here to stay, certainly remains a contentious issue among corporates.

City Lodge Hotels ce Clifford Ross says BAR can work well in hotels that do not have a regular client base who will compare rates each time they stay.

Regular clients need to know what they are paying today is the same as what they will be paying next month and can budget accordingly.”

Peermont, says chief commercial officer Mark Jakins, is not receiving negative feedback regarding its BAR policy. “Our BAR policy does not impact our corporate clients with whom we have rate agreements. We honour the negotiated rate no matter the occupancy. Some corporates prefer the predictability and protection of a negotiated rate agreement. Others prefer not to

make a commitment and take a chance on BAR. It’s really up to the client to decide what’s best for their business.”

Willie Williams, marketing manager Sheraton, says corporates are more understanding when you explain how the process works. “Airlines have been using dynamic pricing for many years. The more full the flight, the more expensive the seat. The same system applies for hotels.”

BAR, says Danny Bryer, Protea Hotels group marketing and revenue director, has “no restrictions and is priced competitively”, ensuring the customer is receiving the best price at any point in time. There is absolute transparency by our distribution partners when it comes to commissions, booking fees etc. Booking in advance allows clients to negotiate better deals.”

Hotel deal breakers: corporates name their needs

By Sue Lewitton AS each new hotel opens its doors around the world, we are fed elaborate descriptions of all its facilities and services. Hotel developers and marketers would have us believe that spas, gyms, WiFi, cutting-edge conference room technology, butler services and iPod docking stations are no longer ‘nice-to-have’s’ but instead, absolute essentials. But how does the corporate traveller really feel – what facilities are their non-negotiable deal breakers?

Essentially, the single most important factor for the business traveller is location. Edcon corporate travel manager, Linette Mulder, says her company’s merchants and buyers need to be close to the shops with whom they plan to do business. “For example, it’s Oxford Street in London, Macy’s in New York and Boulevard Haussmann in Paris.”

In fact, all the corporate travel managers BTN contacted listed location as non-negotiable and one of the top, if not the top

factor, when selecting hotels.

Another important facility is a technologically up-to-date business centre and WiFi. Graham Tate, divisional executive: PAFM for the Development Bank of Southern Africa, says that although many corporates now travel with 3G modems and smartphones, most still consider WiFi a nice-to-have.

Quick check-in/out also ranked high in terms of business traveller priorities. Most corporate travel organisers believe if they use a hotel regularly, their travellers should be offered some type of express service to avoid hanging around reception desks filling in lengthy forms and indemnities.

On other facilities and services, corporate travel managers seem to remain split. For example, Tate says a hotel gym is one of his company’s requirements. Yet for other companies it has never been a big deal. Other factors that are more important include room size and 24-hour room service.

Unbundling – new trend?

UNBUNDLING, the act of removing services or facilities and charging extra for these, may be something hoteliers increasingly try. Internet access, parking and breakfast are all facilities and services hotels either include in their rates or unbundle.

Hilton Hotel Durban gm, Gerhard Patzer, says although guests automatically think a fivestar property would to a lesser extent go the unbundling route, this is not always true. “Even in our own group we have brands that offer free WiFi like the Hilton 22

May 2010 • BUSINESS TRAVEL NOW

Garden Inn brand where at a luxury property like the Waldorf Astoria this would be charged for separately.”

Patzer says it’s up to the hotel group to assess what most of its clients need as a non-negotiable and include this in the rate.

Mark Jakins, Peermont chief commercial officer, says the group’s three-star Metcourt already offers an a la carde facility – i.e. guests are given the option to choose the services they wish to use and pay only for those.

Loyalty programmes – thorn in your side?

HOTEL loyalty programmes should not be a travel manager’s enemy. Rather, they should be seen as a “nice benefit” for individual travellers and their companies.

This is according to Starwood senior vp Sales and Marketing Europe, Africa and the Middle East, Oliver Bonke, who dismisses corporate concerns that loyalty programmes undermine corporate travel compliance.

The key, says Bonke, is actually whether the corporate has the “mechanics” to enforce their corporate travel programme.

“If corporates don’t have these mechanics, the loyalty programme is the least of their worries.”

Liberty Group Procurement travel manager, Anthea Hurly, says although travellers are always keen to get what they can out of their trips, it is “fine” if managed according to price and travel policy.

Hurly says only about 10% of travellers use them.

Increasingly, hotel loyalty programmes are being expanded to include both the traveller and corporate client.

Clifford Ross, ce City Lodge Hotels, says corporates can elect whether they would like to receive the benefits for the company, for the individual or for both. “In this way travel policy can be accommodated depending on the corporate.”

He says bookers can also earn points when making the bookings and therefore benefit by accumulating points that can be redeemed for free nights at hotels for personal use.

Peermont, which chief commercial officer Mark Jakins explains is in the process of developing a hotel loyalty programme, is consulting with the industry before introducing a programme. “Travel managers are aware of added incentives that potentially compromise the integrity and ethics associated with company policy.”

Uptake of corporate hotel booking engines ‘slow’ THE adage ‘build and they will come’ does not necessarily ring true for hotel corporate booking engines.

Prominent hotel groups in SA have all in the past few years introduced booking engines at various levels of sophistication.

Some have built fancy widgets that reside on the corporate’s desktop.

Others have gone so far as to white-label their corporate booking engine to reflect the brand of their corporate partner.

Despite this, along with promises of cost benefits and ease of use, corporates have been slow to embrace these sites.

Heather Wynn, group revenue manager Three Cities, says the slow uptake is due to the TMC nature of SA corporate hotel bookings.

“Corporates still mainly use in-house agents who use the GDS extensively.”

Clifford Ross, ce City Lodge Hotels agrees: “These in-house agencies are incentivised by the GDSs to use their distribution systems to make bookings.”

Ross says these sites are, however, already starting to gain traction.

“Our online booking engine is growing fantastically,” says Gerhard Patzer, gm Hilton Hotel Durban. “Our widget is being used more often, but not nearly as often as we would like.”

Ross explains: “Once the corporate has selected a hotel they can immediately see if there are rooms available for sale on the dates required. Company details are already stored on the system and all they need to do is put in a date of arrival/departure and the client’s name. They get instant confirmation of their booking.”

Adds Mark Jakins, chief commercial officer Peermont: “We have noted a marked increase in online bookings by corporates, who benefit from using online reservations for a host of reasons: negotiated contract rates, real-time availability, instant bookings and a seamless interface for third-party bookings.”

Anthea Hurly, Liberty’s Group Procurement travel manager, says visiting different booking engines would be a waste of time, adding that these all need to be in one place/portal as anything else would be detrimental to the corporate.

Continued on page 24 May 2010 • BUSINESS TRAVEL NOW

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Hotel brands on the radar

Continued from page 23 Serena Hotels refreshes five properties SERENA Hotels has embarked on an extensive refurbishment programme to five of its properties.

Kirawira Luxury Tented Camp and Lake Manyara Serena Safari Lodge are already complete, with the renovation and replacement of soft furnishings in guest rooms and public areas, including the reception, lounge and dining areas.

While the original architecture and traditional interiors have been retained, the properties have been given a fresh look with the newly fitted furnishings.

Ngorongoro Serena Safari Lodge is currently undergoing similar refurbishment and will be closely followed

by Serengeti Serena Safari Lodge in the first quarter of 2010.

Amboseli Serena Safari Lodge is currently undergoing a refurbishment that will see the renovation and extension of 29 guest rooms. Work should be complete by mid-December.

Meanwhile, Serena has started building a new luxury tented camp in Kenya. The new Lake Elementaita Serena Camp will be located in the Soysambu Conservancy, about 120km from Nairobi.

The new camp will comprise 25 luxury tents, a dining and lounge area, spa and swimming pool enjoying magnificent of the lake.

Protea’s Fire & Ice! Melrose Arch opens in Joburg PROTEA Hotels’ Protea Hotel Fire & Ice! Melrose Arch has opened its doors at Johannesburg’s trendy Melrose Arch.

The Protea Hotel Fire & Ice! Melrose Arch offers 197 rooms and is located in The Piazza, Melrose Arch’s recent R2bn expansion.

The new hotel will feature three conference rooms, six meetings rooms and a business centre to meet the needs of the business travellers that make up a large segment of Melrose Arch’s visitors.

City Lodge at OR Tambo Airport opens 78 rooms CITY Lodge at OR Tambo Airport (the hotel’s official name) has opened its first 78 rooms, becoming the 46th hotel in the City Lodge Hotels group. The 303-room hotel, situated three levels above a new car park at the airport, will be fully open by end-May. Costing around R210m to develop, the hotel is operated by City Lodge through a land and building lease agreement with Acsa.

Apart from having the usual City Lodge facilities – such as wireless internet in all rooms, breakfast, coffee shop, gym,

swimming pool and bar – the hotel also offers two functions rooms (24 and 22 seaters) that can be combined into a 46-seater, a meeting room and a boardroom.

Importantly, it has its own set of arrival and departure screens so guests and visitors to the hotel can be kept totally up to date with aircraft comings and goings at the airport.

The hotel also has easy access to all of the airport’s shopping facilities and to the Gautrain airport terminal, which is nearing completion.

New Durban hotels geared for World Cup boom

City Lodge Fourways opens first rooms CITY Lodge Fourways situated opposite Montecasino in Johannesburg has announced the opening of 61 of its 211 rooms.

The hotel, which is expected to attract both business and leisure travellers, is being opened in phases and is scheduled to be fully operational by March next year.

The City Lodge Group is currently building seven other hotels around the country including City Lodge OR Tambo Airport, City Lodge Lynnwood, City Lodge Hatfield, Town Lodge Port Elizabeth, Road Lodge Port Elizabeth Airport, Road Lodge Bloemfontein Airport and Road Lodge Southgate.

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May 2010 • BUSINESS TRAVEL NOW

DURBAN Point Waterfront in KwaZulu-Natal will soon welcome two new hotels to its mixed-use development. The hotels will be ready for visitors during the World Cup. Construction of both the Docklands Hotel and the Anchorage Hotel began last year. The Docklands is expected to open in May and the Anchorage, which is part of the Life Hotel brand, will open in the latter part of the year.

“It was a natural progression to have hospitality developments in this regeneration precinct, as a number of nearby attractions and the beaches lend themselves to attracting both leisure and business tourists,” said Alan Vels, md of Signature Life Hotels.

The Docklands Hotel is a four-star hotel, with 81 rooms, a restaurant and four conference rooms seating a total of 400 people. The R110m hotel is urban, trendy and modern and has striking views over the Indian Ocean and harbour.

The Anchorage Hotel has 63 rooms, a restaurant and a conference room, which seats 400 people.

The two hotels can accommodate a total of 304 resident guests and 600 in the conference and banqueting suites.

Durban Point Waterfront is adjacent to uShaka Marine Theme Park, which is a major tourist attraction. The Waterfront offers easy access to the beachfront and Indian Ocean, and is within a ten-kilometre radius of the Moses Mabhida stadium.

Cape Town’s Pepper Club officially opened PEPPER Club, a R400m hotel and spa located in Cape Town’s city centre, has officially opened.

The 20-storey hotel comprises 210 residences, including the largest presidential suite in Cape Town at over 750 sqm, with four bedrooms, a sundeck and private pool.

The hotel also features a top-quality restaurant, an intimate private cinema, a

swimming pool with panoramic views, a fully equipped gymnasium, a luxurious spa, 24-hour concierge service and security.

Pepper Club offers a fleet of luxury courtesy vehicles that includes a Rolls Royce Phantom for chauffeuring guests to/from the airport and business meetings, as well as on sightseeing trips. ■