NOW manage your travel spend better
November 2009
On the
Wall of Fame Aucamp makes an impact at British American Tobacco
How to: Sell your value as a travel manager ■ Loyalty programmes: love or hate them? ■ Negotiating preferred deals? Prioritising needs ■ Power Panel – saving time and money the SBT way ■ True or false? Recycled cabin air inside an aircraft will make you sick
CONTENTS
COVER STORY
On the Wall of Fame
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CCASSIONALLY you meet someone who makes you sit up and take note, perhaps prompting a stocktaking of your own life. It may be because of that person’s professional accomplishment, fantastic attitude, wisdom, charm or even good looks, among any number of reasons, but the point is a positive impression is made to the extent that you find yourself thinking about that person in the days following the meeting, contemplating what exactly it was that struck a chord – and why. I had that experience recently while listening to the story of British American Tobacco South Africa’s Carel Aucamp who was so unassuming in what he had accomplished in such a short space of time, both academically and professionally. The thing is, at only 26 years old, he has been given a global responsibility for travel, based in the UK, after only two years at the group. Needless to say, I wanted to know to what he ascribed this success. His answer: a boyish naïveté, and in all my years of writing about travel professionals, that was the first time anyone – especially someone with such impeccable academic qualifications – described what he considered to be his biggest asset in that way. “I believe in life,” he said, and his approach is that it matters not what road we take, but rather if we participate and what we become on the journey. The humble, honest truth of that statement hit home and I wondered just how many of us still have that naïveté in our approach to life, and in particular, our professional lives. Whose Wall of Fame are we on? What roads are we taking? How are we participating? And what are we becoming? Just before our recent BTN/ACTE webinar on ‘Reducing Carbon Footprints’ (www.btnow.co.za) began, Mike Gray, Uniglobe Travel Sub-Saharan Africa president and ceo, mentioned that to help reduce his impact on the environment, he’d dug up his lawn, planted a vegetable garden and become a vegetarian. All over the world, people are increasingly asking what they can do to reduce their impact on the environment and as awareness builds, so more initiatives continue to fall under the spotlight to highlight the importance around this topic. A key element is sustainability and in line with this thinking, independent business travel consultant, Digby Johnson, in our Insight column this month, emphasises how we need to move into an era of genuine partnerships to build more sustainable relationships – and businesses – going forward. To sum it all up, it’s not about what you can get, but more about what you can give, that determines the personal and professional footprint you leave on this earth. At the end of the day, the impact you make on your landscape is one that hopefully makes others sit up and take note – in a good way of course. ■ KIM COCHRANE
We speak with Carel Aucamp from British American Tobacco about how demand management has changed the way the group manages its travel portfolio in South Africa and regionally too. Cover and profile images taken by Tijana Huysamen at British American Tobacco’s manufacturing plant in Heidelberg. In the cover image, in front of BAT’s Wall of Fame Aucamp is flanked by some of the travellers he helps to manage.
News
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Power Panel
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Profile
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• ‘Clients our priority,’ say TMCs in recent survey • ITMSA 2009 conference – learn to adapt!
Saving time and money the SBT way
BTN interviews Carel Aucamp from British American Tobacco
Mythbuster
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How to
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On the Radar
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Destinations
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Deal Detective
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On the Radar
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Insight
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Destinations
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Recycled cabin air inside an aircraft will make you sick – truth or myth?
How to sell your value as a travel manager
Loyalty programmes – love or hate them?
Cotonou, Benin
The latest travel specials from Travelinfo
Managing government travel
Into a new era of genuine partnership we go, writes TravelWorks’ Digby Johnson
India – secure on the corporate traveller’s map
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, Hilka Birns, Jeanette Phillips, Liesl Venter, Natasha Tippel, Sue Lewitton DESIGN & LAYOUT Michael Rorke ADVERTISING SALES MANAGER Kate Nathan SALES REPRESENTATIVE Diana Comninos, Lisa Jacobs ADVERTISING CO-ORDINATOR Lana Sachs 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
NOVEMBER 2009 • BUSINESS TRAVEL NOW
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Clients our priority, say TMCs BTN’s Natalia Thomson reports on a recent TMC survey about preferred supplier deals…
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REFERRED supplier agreements may be a dirty word among travel procurement managers, but they would be pleased to hear that as many as 62% of TMCs negotiate their deals based on the needs of their clients as a priority. This was revealed in a recent study conducted among TMCs by Burns Cunningham Corporate Travel’s Brad Muir in fulfilment of a degree through the University of Johannesburg. In his study among TMCs on preferred supplier agreements, Muir surveyed a total of 109 participants, including 40 TMC consultants and 47 TMC owners or managers. One of the survey’s most interesting findings, says Muir, is confirmation of the clandestine way preferred supplier deals are conducted. “Preferred supplier agreements are a contentious issue and transparency around this is often in question.” Only 30% of respondents disagreed that the “general clandestine handling” of preferred supplier deals cast a “shadow of mistrust” over the travel management industry. Corporate clients, said 36% of respondents, were aware of the additional revenues TMCs earned from preferred supplier deals, but 46% believed their clients were not aware. A further 38% of respondents said consultants in TMCs were instructed to offer products and services of preferred suppliers to their corporate clients, while 19% said consultants offered only the products and services of preferred suppliers and 47% of respondents said consultants in TMCs received incentives to sell preferred supplier products and services. At least 43% agreed that consultants offered products and services that met with their clients’ requests. Without preferred deals, the level of service fees levied by groups or consortiums, said 72%, would increase, while 66% of respondents said independent TMCs would be forced to hike their service fees. As many as 80% of respondents said that preferred supplier deals were vital to the industry as a whole and should remain. In the absence
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NOVEMBER 2009 • BUSINESS TRAVEL NOW
Brad Muir
of preferred supplier deals, said 31% of respondents, large TMCs and consortiums would struggle to survive. Respondents believe independent TMCs would have a better chance of survival, with only 14% saying independents would struggle to survive without preferred supplier deals. Some 32% of respondents added that all TMCs would struggle to survive.
Preferred deals for TMCs Preferred supplier deals, said 72% of respondents, mostly benefitted large TMCs who belonged to groups or consortiums. According to 72% of respondents, any TMC irrespective of their independence or affiliation to travel groups or consortiums, should be allowed to qualify for a preferred deal. TMCs, said respondents, should be offered preferred supplier agreements based predominantly on the historical sales of the supplier’s product. Only 11% of respondents said a preferred agreement should be based on the TMC’s prominence in the market and a further 37% believed the promise of an increase in sales and support should be the basis on which a preferred deal was negotiated. Some 91% say that TMCs generally have two or more preferred deals in place for specific areas of travel service like airlines, hotels and car rental. While 76% of respondents believe a TMC should be offered a preferred deal regardless of any other agreements they may have with a competing supplier, only 26% believe that it is unethical for TMCs to secure multiple preferred deals with suppliers who are direct competitors.
NEWS
“Preferred supplier agreements are a contentious issue and transparency around this is often in question,” says Muir
Figure 1: Level of service fees would increase if…
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Figure 2: Corporate clients are aware of the additional revenues that TMCs earn from preferred supplier deals.
Figure 3: The general Disagree clandestine handling of preferred supplier deals casts a shadow of mistrust over the travel management industry.
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are vital to the industry and should remain should be done away with completely
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Figure 5: Consultants in TMCs are instructed to:
offer products and services that meet clients’ requests
offer only the products and services of preferred suppliers
TMC consultant TMC owner or manager Travel supplier
NOVEMBER 2009 • BUSINESS TRAVEL NOW
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NEWS
ADVERTORIAL:
pic: TIJANA HUYSAMEN
New Option BCD Travel winner announced
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Adda Rautenbach, logistic manager for the IQ Business Group (right ), was chosen as the lucky winner of the recent BTN New Option competition held in conjunction with BCD Travel. The prize includes a two-night getaway at any Protea Hotel in South Africa for two people sharing, including breakfast and three-day car rental in a luxury Group O vehicle from Europcar. Pictured here with Rautenbach is md of BCD Travel, Kananelo Makhetha.
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CSIR ICC receives prestigious environmental rating <photocap> New Option BCD
NOVEMBER 2009 • BUSINESS TRAVEL NOW
HE Travel CSIR International Convention Centre (ICC) in Pretoria has been awarded a Adda Rautenbach, Logistic Silver Classification by the Heritage Manager for the IQ Business Environmental Rating Company in recognition Group (right ), was chosen of its ongoing commitment reducing the as the lucky winner oftothe environmental footprint of its operations. The New Option competition in CSIR ICCBTN’s joined the Heritage in September issue.Programme The July 2009. prize includes a two-night “We are delighted with thisHotel achievement, getaway at any Protea which has servedAfrica as a further in South for two motivation people for us tosharing, take this rating to the next level,” including breakfast says CSIRand ICCthree-day gm Glenn car Harding. rental in a The CSIR ICCluxury has certification for OHSAS Group O vehicle from 18001 Europcar. Pictured here with (Occupational Health & Safety) and ISO 14001 Rautenbach is md of BCD (Environmental Management) and is working Travel,ISO Kananelo Makhetha. on achieving 9001 (Quality) certification in 2010. “Although the ICC is already ISO 14001 accredited in terms of environmental management, we decided to partner with the Heritage Environmental Rating Company to gain new insights into being even more environmentally responsible. We believe this will assist us in promoting green conferences to clients who share our commitment towards the environment by reducing the environmental impact of their events hosted at our Centre.”
NEWS
ITMSA: Learn to adapt! By Natasha Tippel
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where professionals discussed the issues Koch’s presentation was followed by a T is a time of unprecedented change and of transparency and upfront models of view on safety and risks of event organisation to stay abreast of changes, we need to face negotiation. presented by Karen Ashwin, md of The Event challenges, coming out the other side with Production Company, including the typical new and creative ways to deal with situations. Day two opened with a panel discussion challenges faced by an event organiser. This was the message from Paul Tilstone, on loyalty programmes. The longstanding ITM UK chief executive, at the issue of whether or not opening of the third annual ITMSA individual corporate travellers conference held at the Mount should be allowed to accrue Grace Country Hotel and Spa miles and rewards earned with recently. company money dominated Tilstone’s video message to the discussion, with the delegates pinpointed the theme consensus being that travel of ITMSA 2009, which focused on policies should stipulate that businesses changing the way they bookings be driven according operate, doing things differently in to lowest fare with the the corporate environment in the objective of inspiring corporate face of the economic downturn and behaviour for the better. A panel discussion on hidden commissions. From left: Warren Tanner-Ellis (MTN), Charmaine Hardwick (Protea Hotel Group), learning to adapt quickly. Todd Montgomerie, md Claude Vankeirsbilck (Tourvest), Karen Ashwin (The Event Production Challenges include cutting costs, of Engergiser SA, spoke about Company) and Howard Stephens (Nedbank). becoming environmentally friendly his company’s decision to as well as thinking globally but implement a ‘fly economy’ Mandy Elliott, head of travel and events acting locally. travel policy to reduce costs and drive for Baroque Medical, spoke about the Issues covered included a discussion on compliance through setting an example key components of a successful strategic sustainable travel and corporate green and Dr Charl van Loggerenberg, meetings management programme while practices by Ingrid Koch, assistant manager regional medical director of GMS Grant Kirchmann, md Westpoint Executive of Climate Change and Sustainability Services International SOS, closed the conference Suites, discussed alternatives to traditional at Ernst & Young. Koch spoke about the with a presentation on risk management, accommodation by comparing hotel models to environmental challenges facing businesses security and repatriation challenges, self-catering apartments. and the benefits of carbon footprinting, with impressing the importance of companies Day one of the conference closed with a a case study on Ernst & Young South Africa’s having a clear emergency plan for panel discussion on hidden commissions, methodology and approach. travellers.
NOVEMBER 2009 • BUSINESS TRAVEL NOW
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POWER PANEL
Saving time, saving money – the SBT way In the business world of today, being able to save the precious commodities of time and money at once, could just be the saving grace of business travel, reports Liesl Venter.
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RAVEL managers will agree that all too often, when it comes to cutting company costs, business travel is the scapegoat. So much so that in the past few years, a number of interventions have been implemented to save money. Self-booking tools (SBTs) are but one of a number of solutions the industry has been using to make travel management more efficient and cost-effective.
“We use the term travel management system, as the self-booking function is but a part of the total proposition.” – Jim Weighell Jim Weighell, corporate manager for Sure Travel, says while they don’t refer to them as SBTs, there is no doubting these tools save time and money. “We use the term travel management system, as the self-booking function is but a part of the total proposition. Usage of a travel management system such as AETM requires a solid travel policy from the outset. AETM creates a structured travel procurement
policy process, which is built on travel policy.” In a 2007 study on the adoption of corporate self-booking tools, commissioned by Amadeus and developed with the collaboration of Acte, Dr Keith Mason of Cranfield University in the UK found that driving higher levels of adoption via a SBT could offer companies real cost savings in terms of reduced TMC fees and lower travel costs. Linette Mulder, Edcon group corporate travel manager, says the implementation of a self-booking tool also enhances travel policy compliance. “The travel policy is the backbone of the SBT, which is the driver of the policy. Travellers are grouped together based on policy decision within Edcon and travel bookers are guided in creating the travel requests based on these prerequisites.” She says motivation is required for out-of-policy bookings, which is transparently communicated in the approval process to the line managers and finally ends up in the business intelligence reporting. According to Wayne Muirhead, sales director for mymarket.com, with an excess of 180 online corporate customers in Africa, the company has achieved significant cost savings of between 20% to 40% for clients depending on the behaviour and policy configurations opted for within the solution.
A travel management system or SBT must be adaptable to your business - and in return your company must be able to adapt to the solution.
Is SBT the correct term to be using? A: No, says Weighell, who prefers the term travel management system. A: It’s a tricky question, admits Mulder, who says it depends on the solution being used within the business. “Edcon uses a holistic travel management solution, as
it is a full source-to-pay solution. Self booking is one of the many advantages of the solution, which enables users to book travel where and when required. But, I’m also cautious when the phrase ‘travel management’ is used that people immediately put a TMC in the picture, which is not necessarily always the case.” A: Muirhead says with mymarket.com, a comprehensive travel management solution is provided. “The definition of a self-booking tool is that you can only place the booking and possibly receive some basic reporting, but with the introduction of the fully automated travel process in the background, the system needs to be viewed as a complete travel management solution.”
What are the pros and cons of a simple SBT versus an end-to-end procurement tool? A: “A SBT is the ability to place a request for travel on a system and a consultant completes the fulfilment of the booking while end-to-end procurement is the ability to electronically request a booking, send it for automated 6
NOVEMBER 2009 • BUSINESS TRAVEL NOW
approval, create a purchase order, pay for the booking in various means and to ensure the ticketing and vouchers are issued electronically and there is no touch from a consultant. The reconciliation is automated and powerful reporting tools ensure the corporate has the ability to analyse trends and have full visibility of data, real time.” – Wayne Muirhead
“A SBT is not suitable for everyone – it can fall flat very quickly if implemented in the wrong environment.” – Linette Mulder A: “A simple booking tool would be something like a website booking engine. Booking is simple but unstructured, invisible, untracked and unreported, while a full travel management system provides structure, tracking and reporting along with single screen inventory access providing choice of supplier and price options.” – Jim Weighell A: “Simply put, a SBT is a request, with limited paying options and then travel while the end-to-end procurement involves the request, approval, the purchase order, pay, travel reconciliation and reporting.” – Linette Mulder
When does a booking solution become a true SBT? Says Weighell: “Anyone can book and there are many channels for this function. Customers should not be looking for a booking solution, but rather an end-to-end management solution.” Muirhead says it’s important that aspects such as authenticated accessibility into the application are present, that the system is based on roles and privileges and that the management of traveller profiles takes place. Other requirements include hierarchical structures and cost centre allocations, direct integration into vendors, an automated workflow and travel documentation production as well as reporting. Mulder agrees, saying that internet application – anywhere and anytime 24 hours a day – is a must along with access to negotiated rates and deals. She says a SBT does enhance transparency. “Before a booking is created, on-screen savings are measured, which in turn changes behaviour through visual guilt.” This automated approval process and business intelligence reporting, says Muirhead, creates transparency through the recording of declined savings. “When compliance can be measured, it can also be corrected.” Adds Weighell: “Transactions are visible to managers and authorisers. This creates a disciplined procurement process within travel policy parameters.”
POWER PANEL
Jim Weighell, Sure Travel corporate manager
Wayne Muirhead, mymarket.com sales director
Linette Mulder, Edcon group corporate travel manager
“Cost savings of between 20% - 40% have been achieved with our excess of 180 online customers.” – Wayne Muirhead How to make it work for you? Edcon implemented a SBT in August 2007 and has been utilising it successfully ever since. “The approval process allows for more transparency because for the first time, the approver sees what savings have been declined and now has the option to decline the travel request subject to true figures, which in turn drives the cost-saving aspect at the same time,” says Mulder. “We have achieved an above-average compliance and more than a 20% saving in the business year on year.” Whilst the percentage of Weighell’s clients who have opted for a SBT is still very small, the trend is growing fast, he says. “Our advice is to look for key features such as a comprehensive travel policy and community structures, authorisation structures and compliancy reports,” he says.
According to Muirhead, cost savings of between 20% - 40% have been achieved with their excess of 180 online customers. “For us, the ability of ensuring that the solution can be configured to the clients’ requirements to suit their cultures and business needs is what makes the difference.” Mulder says it’s all about making the SBT work for you and not the other way round. “It must be adaptable to your business, not a plug-and-play whereby it is stock standard without any possibilities of changes. It must be able to integrate with your financials.” And a word of advice, she says. Your company must be able to adapt to a SBT. “It is not suitable for everyone – it can fall flat very quickly if implemented in the wrong environment.” ■
Next month....
Next month we look at which airline takes responsibility if something goes wrong on a codeshare flight. Is it the airline on whose paper the ticket is issued? Or is it the airline that is operating the flight?
NOVEMBER 2009 • BUSINESS TRAVEL NOW
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PROFILE
The adventurer and the Wall of Fame
Tijana Huysamen
BTN speaks with Carel Aucamp from British American Tobacco about how demand management has changed the way the group manages its travel portfolio in South Africa and regionally too. Words by Kim Cochrane.
Carel Aucamp has a keen eye for optimisation, standardisation and integration from a local, regional and global perspective.
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NSPIRED by a love of adventure, Carel Aucamp is going places fast. The phrase ‘demand management’ has become synonymous with his approach to travel management and following his success at British American Tobacco South Africa (BAT South Africa) after only two years, he has been promoted to global sourcing manager, based in London, effective as we speak. In January this year, he took up a new position as supply chain project manager and before that, he was approached to look after indirect procurement sourcing for Southern Africa. This was when travel first fell within his portfolio and at around 16% of BAT South Africa’s total active procurement spend, travel is an important commodity, he says.
undergraduate degree in B.Accounting at Stellenbosch University in 2005 and his B.Comm Honours degree in Logistics the following year. After five years at university, he commenced his career in Johannesburg as a junior analyst with Volition Consulting Services. After six months, he progressed to junior consultant and worked on numerous projects enhancing companies’ business process management and technology enablement. He worked on contracts such as Petzotakis Pipe Manufacturers SA, Department of Water and Forestry, City of Johannesburg, Sasol, Kellogg’s and Clover SA. In August 2006, he started on a procurement project for BAT South Africa in Stellenbosch. The project was extended to the end of 2007 when he was also offered permanent employment
“I believe in life. It matters not what road we take, but rather if we participate and what we become on the journey. So far life has been an awesome adrenalin-pumping race and I love it!” - Carel Aucamp Aucamp has already jetted off to begin his new life in the UK, but we caught up with him in Heidelberg for this interview before he left the country. Impressively, at only 26 years, he is the youngest travel procurement professional we’ve profiled this year and the first to be undertaking a global responsibility for travel, as he’ll be part of the team that sources all global contracts. His boyish naïveté can be said to be one of his biggest assets, he believes. “I can’t stop asking ‘Why?’ and I always want to know if the process can be amended to be more optimal. With regard to my UK appointment, opportunity awaits and my task will be to rise to the occasion and prove yet again that South Africans can contribute in a global environment.” Aucamp successfully completed his 8
NOVEMBER 2009 • BUSINESS TRAVEL NOW
within BAT South Africa as procurement sourcing manager, a role in which he remained for a year and a half during 2007/8. His work area until end-December 2008 covered the spend spectrum of General, IT Goods and Services Commodities where he managed a portfolio just short of R960 million or 52 commodities of which travel was one of the categories. During this time, it was clear that he had an aptitude for commercial and supply chain integration, as he displayed a NCS-rate (net cost savings rate) of between 25% and 259%. During 2008, he also completed his Masters Degree at Stellenbosch University in Strategic High Performance Business Development: Sustainable Procurement and in January 2009, he took up his new position (supply chain project manager).
As the main change agent for the overhaul of travel management processes over the past few years, Aucamp pioneered the introduction and implementation of what BAT South Africa called demand management in SA and following the programme’s effectiveness, the strategy has subsequently been implemented within the greater Africa and Middle East (AME) region. As supply chain project manager, Aucamp interacted with travel operations mainly on a consultancy basis, as his primary focus became supply chain optimisation and innovation, with a continuous drive to decrease cost and create efficiencies. His withdrawal from the day to day operations was made possible since BAT South Africa outsourced its travel procurement late last year to a wholly owned subsidiary, Agrega AME, which now looks after the procurement side of travel whereas BAT South Africa has retained overall management control. “We inform them of our policy and what we require and they source the suitable suppliers at the best cost. Although Agrega AME is the new purchaser of travel on BAT South Africa’s behalf, the Finance department remained the internal custodian of travel and I stayed on in a consulting role for consistency and to keep the common link. Since aggregating spend and implementing regional deals for air travel through Agrega AME, BAT South Africa has generated a 20% saving.”
Why manage demand? Says Aucamp: “In 2007, we were still a cost-driven management operation and cost savings were my priority. But then we realised we were functioning within a mature travel environment, that we had unique requirements and that internally some of our processes were not optimal. As an example, our biggest routes are into Africa and the UAE – Kenya, Nigeria, Dubai – and these are not the commercialised routes like the Londons and New Yorks of this world, which is why savings became harder to achieve. To do things differently, we decided to embark on an adventure, which we called demand management travel. This was basically shifting travel into the category of a communication medium, as travel enables communication. So instead of the only option of meeting face-to-face via travel, a traveller could choose to communicate via tele- or videoconference as an alternative.” The main drivers behind the adoption of demand management, he adds, were cost and time savings, Duty of Care and a reduction of carbon emissions. “We realised you can always move to different suppliers to achieve savings, but you don’t have control over what suppliers do. If you go into demand management, you take back control.” This element of control is important, he says, because the group’s industry is controversial and as such, intellectual property is a big issue. “We’re conscious of what we have and how best to protect it. How this impacts on travel, for example, is that if a flight is longer than four hours, travellers fly in Business Class, or if they travel over four time bands, they get a day off on the other side. Another aspect is for travellers to have appropriate security in risk areas and if we have third party suppliers travelling on our behalf, they travel on our standards even if their companies have their own policies.”
PROFILE
What’s the ALTERNATIVE?
Tijana Huysamen
“Demand managed travel focuses on the effective reduction of the internal travel demand by introducing a substitute communication medium to curb the need for physical travel,” says Aucamp.
Implementing the principles of demand management ... Carel Aucamp loves his wine. The next step in rolling out demand management, in conjunction with the IT department, was to install videoconferencing in all offices in SA and Africa as a whole, he advises. “There is a push globally to have our meetings through WebEx and Telepresence, the latter allowing participants to feel as if they were present or to give the appearance that they were present at a particular location. Since the roll-out, we decreased the demand for domestic travel by 10.5% and our international travel by 8.6%, which is an awesome case study, as it equates to a 15.9% cost reduction. We even asked our suppliers based in Johannesburg not to fly down to Cape Town for a meeting with us, but rather to go to our Johannesburg office for a videoconference, which saved costs for them as well.” He adds that staff feedback has been amazing. “Up until February this year – that’s a 14-month window – we had 412 videoconferences, but attending those we had 4 600 individuals. We saw that not only were the managers attending, but that they sometimes also invited two additional members of their teams, which meant we had a double attendance. This resulted in more people (who previously wouldn’t have had that opportunity due to cost constraints) communicating and being part of decision-making.” Aucamp believes while demand management and videoconferencing have worked well for BAT South Africa, the trick was to get people to understand the difference between meetings – and why they actually meet – as well as why they don’t always have to be physically present at a meeting. “Training was definitely required, particularly as we are a customerorientated business and many people rely on that face-to-face interaction. In retrospect, BAT South Africa hasn’t reduced the actual number of travellers, but just the number of trips i.e. demand for travel.”
Linked to demand management was the introduction of a revised travel policy in 2007 that has led to the second biggest saving (in terms of the value in rands) year to date of 13.5%, he says. “Because of Duty of Care, we are very picky, so we didn’t change to category C suppliers (low-cost service providers), but kept our category A suppliers. For example, our hotels must have a minimum three-star grading and we only use Group C or higher in car rental. Instead we changed the lead times of when and how we book. We moved from booking 48 hours in advance to 14 days in advance, which made a big difference. But we revisited this last year, because a policy of 14 days was a bit unrealistic so after researching that there wasn’t much difference between booking seven and 14 days in advance, we changed it to seven days.” From there, the structure of how travel was approved and validated was amended. “It’s still paper-based, as phase one for us was to recreate the process of how we do travel and once that’s bedded down, we’ll look at an electronic approval tool. But we have changed from four approvers to one for domestic and two for international travel, hereby streamlining the process.”
Positive adoption levels Adoption of the changes worked, as the new policy was rolled out with many communication interventions, he says. “We included all our suppliers when we re-launched it. We also asked for two sets of corporate rates – one set for when we booked within our timeline and one for when we didn’t, which was well received. Our travellers loved it, especially because we weren’t moving to low-cost suppliers. We said it was still business travel and it was still an effort for our travellers, which we appreciated and as such, we wanted to manage it differently so we didn’t have to take away any luxuries.” He says this year, BAT South Africa also produced its first sustainability report, a shift from social reporting for the past seven years. As part of the sustainability reporting process, targets on the company’s key sustainability material issues had to be reported on. “We did a small pilot study on that to see who, as a result of seeing the impact on the environment of their proposed trip, would decline travel. There’s no point addressing someone’s need who wants to sit in Business Class and yet not addressing someone’s need to offset carbon emissions. We found there was a big need for reducing carbon footprints so we started speaking to our suppliers in this regard.” He adds: “When we introduced demand management, there was R1m-R6m which we couldn’t account for. Another initiative was therefore to consolidate general corporate travel and MICE spend, which was made possible by employing a dedicated conferencing resource to assist the travel manager and five consultants in the in-house travel agency, American Express Maties Travel, based at BAT South Africa’s Stellenbosch offices. The conferencing resource helps with general non brand-specific conferences, which translates to around 800-1 000 conferences a year, as a conference for us is anything more than four people requiring
Fact file: • Partners: SAA, BA, Emirates. American Express Maties Travel. Avis. Protea Hotels and B&Bs. • “We have about 2 500 employees (of whom at least 1 200 travel), but we do touch around 10 000 people.”
Key principles of demand management The five key requirements to implement this approach would be: • Mature travel cost environment • Corporate culture of freedom and responsibility • Suitable alternative medium to travel • To challenge the current status quo and provide factual training to travellers • Active change agent and executive support Travel Demand
The impact of demand management was decreased travel costs, carbon emissions and out-of-office time and as such, increased Duty of Care and productivity. a caterer. When she took over, we realised the spend was R10m, not R6m, so that gave us greater visibility into that spend. Just by bringing her in, our saving was about 15%.” Since demand management was introduced before the economic downturn, travel was already under control at the time the recession started, he says. “The question – ‘What other alternative have you considered? – was already on the travel requisition form. This provided visibility to encourage use of technology before flying. In support of the recession, we have a project running globally to reduce travel spend by 20% and demand management and the aggregation of regional spend have contributed towards it already. If all goes well, we’ll have reduced 17% so far, so our approach will have paid off.” As the mathematician and philosopher Alfred North Whitehead (1861-1947) once said: “The vitality of thought is in adventure. Ideas won’t keep. Something must be done about them.” And so the adventure for Aucamp continues. ■
NOVEMBER 2009 • BUSINESS TRAVEL NOW
9
By Sue Lewitton
Ernst du plessis
MYTHBUSTER
Recycled cabin air inside an aircraft will make you sick
Reality
F
EARS over the spread of contagious diseases, such as the H1N1 virus, have thrown debate on the quality of aircraft cabin air. Is it possible that travellers are inhaling harmful bacteria, or even toxic air, that has not been treated properly? According to Linden Birns, spokesperson for Airbus in SA, passenger fears are unfounded. He says: “Modern jetliners are designed and equipped with special air filters similar to and in most cases even better than those found in most hospital operating theatres. These have to be cleaned and maintained according to prescribed health and safety regulations.” In response to public concern about the safety of cabin air, the International Air Transport Association (Iata) released a statement on the risk of contagious diseases in aircraft. It states that the overall risk of contracting a disease from an ill person onboard an airplane is similar to that in other confined areas with high occupant density. However, it goes on to say that the risk on 10 NOVEMBER 2009 • BUSINESS TRAVEL NOW
aircraft is probably lower on account of highly efficient HEPA-type cabin air filtration systems. HEPA or high-efficiency particulate air-type filters
“Modern jetliners are designed and equipped with special air filters similar to and in most cases even better than those found in most hospital operating theatres. These have to be cleaned and maintained according to prescribed health and safety regulations.” are effective at capturing greater than 99% of the airborne microbes in the filter air.
Other concerns have arisen over rumours from recent reports that ‘toxic air’ is cooled and then pumped unfiltered directly into some aircraft cabins. Craig Thomas, SA manager of Etihad Airways and Board of Airlines Representatives of South Africa (Barsa) chairman, says although it is true that engine air is used in cabins, it is first cooled and then processed through a filtration system in most modern aircraft. “Certainly all long-haul aircraft,” adds Thomas. Air quality on the ground is also taken into account, says Birns. “Airbus’s unique Volatile Organic Compounds (VOC) converter keeps cabin air free of kerosene odours from other aircraft. On an A380, the air in the entire aircraft cabin is refreshed every three minutes and combined with high-efficiency filters, which remove 99.9% of unwanted substances, delivering the highest air quality passengers expect.” ■
BTN0900SD
HOW TO
How to sell your value as a travel manager By Max Marx
Warren Tanner Ellis, MTN group travel manager Q: Do you manage travel only or other commodities as well? A: Travel only. Q: Is your portfolio and role valued within the company, particularly by senior management? A: I believe my portfolio and role is valued by my immediate manager/boss (head of Group Procurement). Over time he has become more aware of the actual service deliverables and saving-based opportunities a dedicated travel manager can bring to an organisation. Our very senior management are more concerned with bigger items than the management of MTN’s travel spend (which in relation to other expenses is quite small). But there is an indirect appreciation and value when they need specific help with a supplier and I’m able to use a supplier relationship to assist them, such as situations where a first- or business-class seat is not available on a flight and they need one. Q: How much clout do you have within your organisation? A: In general business terms, my ‘clout’ is very small. However, when it comes to specific travel-related items I have found that over time, my opinion and influence has grown and strengthened. Q: How can travel managers sell their own value within a) their company and b) the travel industry? A: Within their company: The actual activities (work/ job description) of a travel manager can be vast and if not well planned, travel managers can find themselves involved in a very busy, operational-type role, dealing with numerous daily items. The value of a travel manager needs to be sold to his/her company by clearly identifying (upfront) what the primary objectives are, for a determined period of time. Whilst this strategic exercise may appear obvious (or even simple) it is not done by travel managers and therefore the travel manager’s achievements and success over time is difficult to understand, let alone measure. Within the travel industry: I’m not sure a travel manager needs to ‘sell’ his/her value to the travel industry. But a neglected area where travel managers generally don’t provide sufficient focus is in extending dialogue and collaboration with travel suppliers so as to better understand their respective underlying costs. This is an important exercise in that it can provide the opportunity to further reduce the client’s end sale price, through the removal or replacing of the suppliers various ‘cost of sale’ items.
14 NOVEMBER 2009 • BUSINESS TRAVEL NOW
Jenny Burnell, travel manager, Nedbank Group Procurement Q: Do you manage travel only or other commodities as well? A: Travel only. Q: Is your portfolio and role valued within the company, particularly by senior management? A: My portfolio and my role are definitely valued by my direct manager and senior management within my business area. With regards to the rest of the bank, we have had some great successes, but it is a journey. Q: How much clout do you have within your organisation? A: I was employed for the position because of my length of service in Nedbank (22 years) and many of the senior management and executives of Nedbank know me. But I do escalate any serious problems to my line manager, who is Howard Stephens, chief procurement officer for Nedbank. Q: How can travel managers sell their own value within a) their company and b) the travel industry? A: Within their company: • Communication is vital. • Share with your business the savings that you can make for them. • Have travel forums that help the business understand travel better. • Identify ways to improve travel behaviour and thereby change behaviour. Within the travel industry: • Build good working relationships with your suppliers.
Linette Mulder, Edcon group corporate travel manager Q: Do you manage travel only or other commodities as well? A: Travel only. Q: Is your portfolio and role valued within the company, particularly by senior management? A: Yes, this position is valued as being a critical part in the travel value chain. The travel manager is seen as the resident travel authority and in this role needs to drive value for the company by way of better buying and ensuring a better service offering from suppliers. Q: How much clout do you have within your organisation? A: I manage the travel budget and have a say within my area of responsibility. Q: How can travel managers sell their own value within a) their company and b) the travel industry? A: Within their company: Manage and control travel expenditure; manage the travel processes and policies; and communicate with travellers. Within the travel industry: Relationship building through managing your portfolio with regards to corporate agreements and service level agreements, which should be reviewed on a quarterly basis; and sharing knowledge with peers by networking and attending travel management conferences.
ON THE RADAR
Loyalty programmes – love or hate them? What is the real value of loyalty programmes? Do they add value to the bottom line? Should individual corporate travellers be allowed to accrue miles with company money? Natasha Tippel investigates.
L
OYALTY programmes can be a touchy subject for corporate travel managers. On the one hand, the programmes and their benefits keep travellers happy, but on the other, they can impact indirectly on travel policy compliance and cost-saving initiatives within the company. “Loyalty programmes are all about acknowledging loyal clients and recognising the value they offer to businesses,” says Accor Hospitality md, Philippe Trapp. “They are not meant to interfere with travel policy. Most companies offer staff members a choice of two or three hotels at the same destination. If all three hotels are part of the travel policy, a loyalty programme might offer extra services and benefits for the staff member while respecting the company’s policy.” Commercial director of Southern Africa and Angola for Air France and KLM Royal Dutch Airlines, Ralf Karsenbarg, agrees: “In general, our experience is that companies choose a few preferred suppliers. It is then up to the specific traveller which carrier he/she chooses within the given framework based on schedule, price and possibly the loyalty programme.” A loyalty programme is an integral part of a travel policy and the two go hand in hand, says md of Southern and Eastern Africa for Lufthansa German Airlines and Swiss International Air Lines, Gabriel Leupold. “The best solution to the dilemma of matching loyalty programmes to travel policies is to narrow down and select a few partners that are of the most benefit to the company. Working with too many partners can lead to travel spend being driven by loyalty programmes as opposed to company benefit.”
The bottom line
The drive for further cost reduction in the current economic climate is forcing procurement professionals of travel to look at all aspects of total cost more closely, including the costs of participation in loyalty programmes. “If a loyalty programme adds no value to the corporate and does not change the purchasing behaviour of our travellers towards preferred suppliers, we are happy for it to be eliminated from our spend to drive costs down,” says Tessa King, Procurement – Standard Bank. Mandy Elliott, Travel and Events – Baroque Medical, agrees: “Currently, we still allow our travellers to gain the benefit of the loyalty programme in their personal capacity. Loyalty programmes may be considered a ‘perk’ for the inconvenience of travelling for the organisation, however, it is the responsibility of the organisation to ensure that suppliers and/or partners utilised are in accordance with the company policy and its concern with cost.” The future of loyalty programmes in the corporate environment is far from being obsolete. There is a way forward, as long as these programmes adjust to meet the needs of not only the individual traveller, but company policy as well. “Loyalty programmes should be negotiated at corporate level and the resulting contract should contain benefits for both the corporate organisation and the frequent flyer. This will go a long way towards addressing the complexity issues inherent in these programmes – along with
At ITMSA’s recent annual conference, a panel discussion was held on loyalty programmes. The issue of whether or not individual corporate travellers should be allowed to accrue miles and rewards on the company’s bill dominated the discussion, with the consensus being that travel policies should be cost driven and bookings should be made according to the lowest fare. Self-booking tools should be deployed to make the process more visible and measurable, influencing corporate behaviour positively. On the panel were from left Tessa King (Standard Bank), Samantha Shuttleworth (Rehau Polymer Southern Africa), Desmond O’ Connnor ( 1Time Holdings) and Pieter van der Merwe (Global Choices Lifestyle).
a well-crafted travel policy that ensures travellers travel optimally,” says founder of Duma Travel, Themba Mthombeni. He suggests that travel reports contain a section relating to the potential abuse of frequent flyer programmes. “For example, reports should contain a part where the reason for choosing a particular service provider over a cheaper option is recorded. Supplier contracts should also be managed tightly and proactively.” Mthombeni says the best programmes allow for the accumulation of points for both the corporate and the individual simultaneously. “In addition, they should allow travellers to accumulate and redeem points across a number of suppliers e.g. flying with SAA or any of its Star Alliance partners. They should also provide for a shifting point system whereby for example accommodation points can be used to purchase an air ticket.” King agrees: “I believe loyalty programmes will continue if they support travel policy by driving spend to certain suppliers, but the problem is that loyalty programmes aim at rewarding more for higher-yield spend and this could drive the incorrect behaviour. If travellers are disciplined and your TMC and/or self-booking tool assists you to control it, both parties can win by allowing participation of loyalty programmes while the company drives costs down by aggregating spend to suppliers where it negotiated volume deals.” Leupold notes: “In an ideal world, the company would first look at immediate cost and work with partners who are also able to meet the passenger’s interests. For example, status Mile & More members have the added benefit of access to lounges and increased baggage allowance. These become part of the deal irrespective of class travelled. These soft dollar benefits help to further satisfy the customer and inadvertently drive the travel policy within the company’s interests.” Loyalty programmes are always working on new initiatives to tap into the corporate travel business and offer incentives, says Ethiopian Airline’s regional manager for Southern Africa, Tekleab Paulos. “Offering value-based
corporate incentives and discounts is a way of maintaining the loyalty of corporate travellers and decision-makers to a certain brand. Different schemes are followed to achieve corporation loyalties without compromising individual loyalties and without escalating the cost of loyalty programmes.” >
“At this stage, loyalty programmes take a back seat in favour of the best rate/fare of the day.” – Mandy Elliott Something to think about
According to Elliott, research confirms that when a traveller is flying in his personal capacity, he will make use of the best-fare-on-the-day principle, including low-cost carriers. Research also confirms that three times more airline miles are generated than being consumed, so overall 66% of miles earned will never be used, implying there may be no actual benefit in the long term for the traveller.
NOVEMBER 2009 • BUSINESS TRAVEL NOW
15
ON THE RADAR
In addition to the classical mode of making carbon offset donations with voluntary cash contributions, passengers can now use the mileage they accrue in the worldwide Miles & More frequent flyer programme to compensate for the impact of their flying on the climate.
* Loyalty programmes continued
Get more green benefits with Miles & More AWARD miles earned in the Miles & More frequent flyer programme can now also be used for voluntary carbon offset donations at Lufthansa and SWISS airlines. For the past two years, Lufthansa passengers have already enjoyed the option of voluntarily donating cash through the prestigious ‘myclimate’ foundation to help compensate for the carbon emissions caused by their flights. In addition to the classical mode of making carbon offset donations with voluntary cash contributions, passengers
can now use the mileage they accrue in the worldwide Miles & More frequent flyer programme to compensate for the impact of their flying on the climate. Passengers opting to pay with award miles will have the miles deducted from their mileage account. Myclimate will receive the corresponding amount in cash from Miles & More and invest the money in certified climate protection projects. Within the Lufthansa Group, SWISS also offers passengers this option of cooperating with myclimate.
Continental Airlines adds new changes to OnePass programme CONTINENTAL Airlines has announced changes to its OnePass frequent flyer programme, adding new benefits for its customers, some of which are as a result of joining the Star Alliance group in October. Continental’s OnePass members will enjoy reciprocal mileage earning and redemption opportunities with Star Alliance’s 24 member airlines and will be able to connect to more than 950 cities all over the world. OnePass Platinum and Gold Elite members are now Star Alliance Gold members, gaining recognition and rewards across all member airlines in addition to OnePass benefits.
Platinum and Gold Elite members will have access to more than 800 worldwide lounges when travelling on an international itinerary with any Star Alliance member airline, regardless of class of travel. Additionally, Platinum and Gold Elite members will receive an extra baggage allowance of up to three bags or 20kg on both Continental and Star Alliance member airlines and will receive priority services including priority airport check-in, boarding and baggage handling across the network. In addition, upcoming changes to the OnePass programme include fewer fees for
Platinum Elite members, no more Saturday night stay required for reward travel and 100% Elite Qualification Miles and Points earnings on any ticket regardless of where it was bought or issued. “With change comes opportunity and we’re working hard to ensure the transition to Star is smooth for our customers,” said Mark Bergsrud, senior vice president of marketing programmes and distribution at Continental Airlines. “We look forward to bringing new benefits, better global coverage and more good news later this year.”
Miles & More matches competitor’s offer with Accor Services Compliments Card IN the highly competitive airline industry, the challenge recently facing Lufthansa was how to provide South African-registered Miles & More loyalty programme members an alternative to competitor programmes that offer miles through local credit card usage. Identifying the need for a tool to retain customers, Accor Services recently launched a prepaid card that entitles the card holder to shop at a range of over 3 000 selected retailers countrywide. Lufthansa selected its network from 120 000 MasterCard outlets nationwide, including Woolworths, Boardmans, The Pro Shop, Arthur Kaplan, Edgars, Hi Fi Corporation and Waltons stationary, to name a few.
Miles & More multi-store cash card can be ordered via the airline’s website and is then issued and distributed by Accor Services. The card comes in four denominations: a R200 card costing 9 000 miles, a R400 card costing 17 000 miles, an R800 card for 31 000 miles and a R1 000 card in exchange for 40 000 miles. Other benefits of the Compliments Card include safety aspects and an anti-fraud administrative support that permits corporate branding and tracking of consumer spend. Accor Services provides prepaid solutions other than rewards and loyalty, including public benefits and business expense management. >
16 NOVEMBER 2009 • BUSINESS TRAVEL NOW
“If a loyalty programme adds no value to the corporate and does not change the purchasing behaviour of our travellers towards preferred suppliers, we are happy for it to be eliminated from our spend to drive costs down.” – Tessa King
ON THE RADAR
If travellers are disciplined and TMCs and/or self-booking tools assist corporates to control compliance, all parties can win by allowing participation in loyalty programmes.
* Continued from pg 16
Did you know? Air France and KLM offer a loyalty programme specific to small- and medium-size enterprises. Corporates can achieve cost savings by joining BlueBiz. Next to earning Flying Blue Miles for each passenger, the company earns credits, which can be used to purchase free tickets. Depending on the booking class, after buying six business-class tickets to Europe, the seventh ticket can mostly be obtained for free. Other airlines that offer company loyalty programmes are LAM and Virgin Atlantic. LAM’s Flamingo Corporate Card benefits organisations by registering points from LAM flights made by employees on the corporate account. Virgin’s Flyingco is aimed at SMEs. Miles are accumulated for the company as well as the individual traveller. The account earns 40% of the miles the individual earns for the company use. Flying Blue passengers have access to executive lounges, such as the KLM Crown Lounge at Schiphol Airport (pictured) and the Air France lounges at Charles de Gaulle International Airport in Paris.
New partner joins Etihad Guest Loyalty Programme ETIHAD Airway’s loyalty programme, Etihad Guest, has announced a partnership with XING, a global online network for business contacts. XING is an online business networking community that offers members the ability to develop professional contacts, access networking opportunities and other privileges through a range of web-based tools and resources. Membership is on
two levels – a basic membership, which is free, and premium membership, which requires a monthly fee. XING premium members who enroll in Etihad Guest through its Best Offers link will earn 5 000 Etihad Guest bonus miles with their first, post-enrolment Etihad Airways flight. Etihad Guest members who enroll as premium members of XING will get three months free membership.
A|Club celebrates first anniversary A|CLUB, a worldwide loyalty programme, recently celebrated its first anniversary with its three million members. Over the past year, A|Club card holders have been able to earn points at more than 2 000 Accor hotels in the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis and All Seasons networks, a benefit soon to be extended to the Adagio network. In addition, A|Club members can accumulate points from an ever-expanding base of partners, such as Club Méditerranée, Europcar, Lenôtre and 12 major airlines. Main benefits to joining A|Club are: • Terms of application, with points awarded for each euro spent in a hotel, whether on lodging, dining or other services. • Inclusiveness, as the only loyalty programme awarding points across a broad spectrum of two- to five-star hotels worldwide. • Generous promotional offers, which are regularly renewed and always easily accessible online at www.a-club.com. • Meanwhile, the A|Club website, currently available in seven languages, will be available in Chinese and Polish by the end of 2009. • Starting in January 2010, a paperless reward system will be introduced, allowing members to receive their A|Club vouchers in electronic form.
Star Alliance launches worldwide meetings product STAR Alliance has launched a global product for the meetings market: Meetings Plus. Companies, meeting planners and incentive agencies needing to organise gatherings with participants from different countries now have access to the entire Star Alliance network by contracting their travel needs through just one Star Alliance member airline. “With Meetings Plus, we are offering an alliance product to a new market segment. We are certain that our Meetings Plus customers will value the experience and expertise which we can provide, largely based on knowledge gained by having offered an alliance 18 NOVEMBER 2009 • BUSINESS TRAVEL NOW
conventions product for more than eight years”, said Christopher Korenke, vice president Commercial, Star Alliance. Meetings Plus can be used for most meetings of 50 people or more, with attendees originating in at least three different countries. Interested meeting organisers send an online request for proposal (RFP) via www.staralliance.com/ meetingsplus. The organiser will then be contacted by the Star Alliance member carrier designated to handle the travel requirements for the requested event. Bookings will be made through the organiser’s appointed travel agency. >
ON THE RADAR
LOYALTY PROGRAMMES AT A GLANCE CAR RENTAL Programme
How to earn points
Participating partners
Benefits
Avis Rent a Car Avis Wizard Card Preferred Service Card Presidents Club Telesales Programme Frequent renter programmes
Rent a latest model vehicle from Avis
5 000 Avis rental locations worldwide, Avis Southern Africa, Greenbacks, American Express Cards, eBucks, international offers, and hospitality partners
Worldwide discounts and a variety of airline rewards on qualifying rates International discounts and never sign a rental agreement again VIP status, including vehicle and waiver upgrades when available One point for every rental day, receive a free rental day certificate for every 15 points Special offers and points earned or converted
Budget Frequent Renter Rewards
Rent nine times, earn a free day on tenth rental (terms and conditions apply)
Budget
Members continue accumulating complimentary days and can use a maximum of three consecutive days with one rental
Europcar Drive Card
Rent a vehicle from Europcar in SA and in over 3 000 global locations and receive benefits
Airlines, hotels, affiliate partners
5 000 Bonus Voyager Miles after 10 rentals in 12 months (once-off) Discounts on published rates Discounts at Executive Carport at OR Tambo International Discounts with Imperial Chauffeur Drive
First Car Rental First Club Card
Receive your free card at rental counters countrywide
First Car Rental
Quick check-out Upgrading the car type of an existing rental Free car rental days Additional benefits for higher tiered Club members
Hertz #1 Club Gold
For every ten rentals, one free rental day voucher given (terms and conditions apply)
Signature Life Hotels, Southern Sun, Status Hotels, SAA, and numerous global airline, rail and hotel partners
No long queues One Master contract Service priority Pre-allocation of car Special dedicated counter Two-hour advanced reservation Electronic name board recognition No signature required, just show driver's licence (Additional benefits for Gold Five Star and Gold President Circle members)
Tempest Car Hire
Rent a vehicle from Tempest Car Hire and receive low rental rates throughout South Africa
Mango Airlines, corporate and leisure self-drive
Preferential car hire rates when flying with Mango Airlines Chauffeur drive GPS rentals available from main airport branches Corporate Hub that facilitates bookings for travel agents and corporates
HOTELS Accor A|Club
Stay at 2 000 hotels from Ibis to Sofitel worldwide
Club Med, Europcar and 10 airline companies
Convert points into hotel checks and airline miles Increased benefits for elite Gold, Platinum, and Favourite Guest members
City Lodge The Lodger Club The Corporate Club
Points earned by processing bookings online while logged in to your account Corporate Club is for corporates who spend more than R75 000 per annum
City Lodge Hotels
Earn points towards free nights for every night stayed at any Courtyard Hotel, City Lodge, Town Lodge or Road Lodge Up to 50% more points earned on weekends
Hilton HHonors
Earn hotel points and airline miles for the same stay at more than 3 300 hotels in over 80 countries
Hotels and airlines
No black-out dates Priority reservation recognition Spouse stays free Level-dependant late check-out and upgrade on availability
Protea Hotels Prokard The Status Travel Card
One point for every night spent at a Protea Hotel or African Pride Superior Deluxe Hotel, Lodge or Country House when staying on a Prokard-related rate
Budget
Up to 20% discount off the best available rate of the day, including peak season. Guaranteed 5% discount on special offers advertised on proteahotels.com and 5% off weekend Pricebreaker rates Exclusive weekly e-mail offers Hotel room upgrades (subject to availability) Early arrival and late departure privileges Varying options of free night rewards Exclusive preferential car hire rates with Budget Car Rental Additional benefits for Gold members
Southern Sun Southern Sun Frequent Guest
Earn Sun Rands on accommodation and other specified hotel spend, valid for a maximum of 24 months. Sun Rands are earned when a participating accommodation rate is paid
American Express, Nedbank Greenbacks, SAA Voyager, SunSwop, Europcar and Executive Carport
10% to 20% Sun Rands Preferential accommodation rates Pay single, stay double 5% discount on published SunBreaks rates, further 5% discount when booking via southernsun.com Dedicated check-in and check-out 15%-20% food and beverage discount 10% discount at Southern Sun Spas Upgrade to best available room, subject to availability on check-in (benefits specific to tier and brand)
Starwood Starwood Preferred Guest
Earn and redeem points at 940 properties in 93 countries worldwide
Airlines, car rental, financial, retail
Free nights, free flights, room upgrades, gift certificates and transportation No point expiration dates for active members No black-out dates Instant rewards for hotel services Online reward redemption Access to Once-In-A-Lifetime Moments
Three Cities Preferred Guest Card
10% CashBack rewards at participating hotels paid onto card. Rewards can be used to settle guest accounts in part or full at any participating hotels, resorts or game lodges
Infinity merchants countrywide, discount at Avis when booked through Three Cities call centre
10% of the applicable rate as a CashBack reward Express check-in and check-out Automatic ‘best room available’ upgrade when available A free night’s luxury accommodation for two people for every 10 stays. Loaded electronically onto the card
20 NOVEMBER 2009 • BUSINESS TRAVEL NOW
ON THE RADAR
LOYALTY PROGRAMMES AT A GLANCE AIRLINES Programme
Mileage expiry
Partners
Non-related point accrual
Unique selling features
Codeshare flights carrying UU number earn points
Bonus points on specific, promotional fares and enrolment
Award flights on UU on a one-way basis Automatic upgrade twice a year to Premium Capricorne status on reaching 12 500 points during the last 12 months Awards possible for companion, excess baggage or upgrade Premium cardholders are entitled to one free annual upgrade
Status Miles: no expiry Award Miles: three years
None
Hotels, airlines, car rental, local partners including telecommunications, German insurances, and newspapers
Airberlin VISA Card Airberlin Service Card, offering 10kg additional baggage allowance Free seat reservation One sports equipment free of charge Topdeal tickets Companion ticket Business class upgrade available, even on the day of departure at the airport ticket counter
Air Canada Aeroplan
Active account miles are valid for seven years
Star Alliance and other airlines
Hotels, car rental, holiday packages, retail and services, telecommunications, financial and insurance
Preferential seating for Elite members Extra baggage allowance and lounge access for Elite and Star Alliance Gold members Over 400 Aeroplan Rewards to choose from
Air France/KLM/Kenya Airways Flying Blue
20 months from the last flight on SkyTeam carrier
SkyTeam
Hotels, car rental, commercial partners
Extra baggage purchase possible with miles Buying of gift miles possible Able to purchase access to lounges at CDG and Schiphol for Silver Elite Flying Blue members at cost of EUR 35 or 5 000 miles Upgrades available on all SkyTeam carriers except AZ
Air Madagascar NAMAKO
Three years
None
None
Free tickets Excess baggage allowance (10kg on international flights)
Air Malawi Skypoints
Do not expire
None
None
Air Austral Capricorne
Air Berlin / airberlin Topbonus
Three years
Three years
None
Car rental, duty free
Priority waitlist Family points Extra baggage allowance 10% discount on helicopter services Dedicated reservation and check-in counters Check your miles online Personalised baggage tags (Additional benefits for Gold members)
Air Namibia Reward$
Do not expire
None
None
Transferable to family and friends Free return flights on domestic, regional and international 50% reduced fares and upgrades
Air Seychelles Seychelles Plus
Two years
None
None
10kg free on Silver tier 20kg free on Gold tier and access to VIP lounge Members can access their statements and redeem points online
American Airlines AAdvantage
Each qualifying activity extends mileage expiry for 18 months
oneworld
Credit and debit cards, dining, financial services, hotel partners, telecommunications, car rental, shopping, holidays and cruises
Not subject to capacity controls Plan AAhead awards One-way flex awards – allows various award combinations Enhanced AA.com award-booking tool
British Airways/BA Comair Executive Club
Miles expire if account inactive for 36 consecutive months
oneworld
Hotel partners, credit cards, car rental, shopping onboard
Access to 250 lounges Preferred seating Upgrades No black-out periods Up to seven members living at the same household collectively earn BA miles
American, BA, Aer Lingus, Iberia, Qantas, Alaska Airlines, Air China, China Eastern, Dragonair, Finnair, Gulf, Malev, Mexicana, Royal Brunei, Royal Jordanian, Vietnam Airlines, Japan Airlines, Jet Airways, LAN
Hotels, dining, telecommunications, car and transport, professional services, finance and insurance, retail, travel and leisure
First class earns 150% of miles per trip; business class earns 125%; economy class earns 100% Members can redeem miles from 20 airline partners
Star Alliance from October 27, 2009
Hotels, car rental, credit/debit card, cruises, others
Redeem miles to over 500 destinations earning a minimum of 500 One Pass miles for every flight Earn miles towards Elite Status on SkyTeam and member airlines SkyMiles Medallion members enjoy Systemwide Upgrade Certificates that are redeemable on the day of departure, the ability to gift Medallion Status to a friend, bonus miles you can keep or donate to a SkyWish charity and Delta Sky Club One-Day passes Access to over 415 SkyTeam lounges worldwide Waitlist priority and extra baggage allowance for Gold and Silver members Gold members can use first class shuttle to and from Cairo International Airport 5% discount at EgyptAir duty-free shops Family bonus miles
Air Mauritius KestrelFlyer
Cathay Pacific Asia Miles The Marco Polo Club
Three years One year
Continental Airlines One Pass
No expiry date
Delta Air Lines SkyMiles
Miles do not expire as long as there is activity every 24 months
SkyTeam, associates: KQ, UX
Car rental, telecommunications, credit cards, dining, retail, hotel partners and shopping
EgyptAir EgyptAir Plus
Two years from earning date
Star Alliance, codeshare flights
Hotels, cruises, car rental, restaurants, shopping, others
Three-year bonus period, after which voucher (valid for 12 months) must be issued against points
Joint point accrual (conditions apply) AA, QF, SA, AreoMexico, Sun D’ or codeshare partner flights only: LX, SA, TG, IB, OS, LO, TQ, FB, VV, SN
El Al Matmid
Duty-free onboard, hotel partners, car rental, restaurants, and shopping
Extra points for Silver, Gold or Platinum status Extra 5kg free baggage allowance Bonus tickets valid for one year Members may give free tickets to anyone
Disclaimer: BTN has made every effort to ensure the accuracy of this table, but accepts no responsibility for incorrect information supplied by suppliers.
22 NOVEMBER 2009 • BUSINESS TRAVEL NOW
ON THE RADAR
Loyalty programmes are all about acknowledging loyal clients and recognising the value they offer to businesses.
AIRLINES Programme
Emirates Skywards
Ethiopian Airlines Sheba Miles
Etihad Airways Etihad Guest
Iberia Iberia Plus
LAM Flamingo Club
Lufthansa/SWISS Miles & More
Mileage expiry Three years and expire at the end of the month in which a member was born Tier miles are accumulated from January 1 to December 31 each year, at which time a member’s tier miles account is reset to zero
None
Personalised luggage tags Personalised membership cards Waitlist priority Cloud Nine check-in Use of exclusive departure lounge Tier activity bonus Extra baggage allowance A dedicated reservation hotline Frequent Flyer help desk support
Brussels Airlines, Oman Air, Jet Airways, Sri Lankan Airlines
Car rental, hotels
500 miles when enrolling Unique miles and cash option available on all flights Full mileage accrual on lowest fare classes No black-out periods Double miles promotions for the first month of each new route
oneworld, codeshare flights
Hotels, car rental, shopping
Beneficiaries can be appointed and can redeem points without an accompanying member
Two years
None
Hotel partners, car rental, fuel products, and telecommunications
Check-in at the executive desk Additional luggage of 5kg on domestic and regional-flights and of 10kg on intercontinental flights. Priority on the waiting list Special benefits when using services provided by the partners of the programme (Additional benefits for higher tier memberships) Flamingo Corporate Card
No expiry for Frequent Traveller and Senator cardholders, otherwise usually after three years
24 Star Alliance airline members, 21 other airlines
Car rentals, hotel partners, shopping
Miles can be purchased and statements checked online Missing flights can be retroactively credited Higher free baggage allowance Use of lounges (conditions apply) Executive bonus (on certain Star Alliance partners) Donate miles to social and environmental projects
Air France, ANA, KLM, Northwest, Virgin Atlantic
Telecommunications, travel, shopping, health and wellness, car rental, hotel, credit cards
Free flights Upgrades Enrich vouchers Excess baggage payment Temptations in-flight shopping Golden Lounge access vouchers Enrich Express (Top Up Miles)
oneworld and other airlines
Credit cards, hotel partners, car rental, travel partners, shopping, financial and business services
Increased baggage allowance Preferred seating Complimentary Gold membership for Platinum member’s partner Family points transfer
Lufthansa, Virgin Atlantic, Middle East Airlines, ANA, United Airlines
Hotels, car rental, banks
Tier membership with different benefits: Burgundy, Silver, Gold Family programme
Three years
Star Alliance, SilkAir, Virgin Atlantic, Delta, Mexicana
Hotels, car rental, credit cards, telecommunications, and insurance
25% tier bonus for Elite members Priority check-in and boarding Increased baggage allowance Lounge access for Elite Gold members
Three years. Mileage validity can be extended by one year (conditions apply)
SAX, Airlink, Airlink Swaziland, El Al, Jet Airways, Emirates, Virgin Atlantic, Star Alliance
Car rental, financial, hotels, property, retail and lifestyle
Upgrade to Silver tier at 25 000 miles; to Gold tier at 50 000 miles; and to Platinum at 100 000 miles Lifetime Platinum status if member retains Platinum status for six consecutive years
Star Alliance
Hotels, car rental, airport shopping, telecommunications, selected petrol stations
Bonus miles are excluded from status evaluations Priority baggage handling with additional baggage allowance for Silver and Gold status Two complimentary round-trip upgrades during the two-year validity of Gold status (nontransferable)
Air Canada, Air China, Air New Zealand, Egypt Air, Lufthansa, Shanghai Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, Thai Airways, United Airlines, US Airways, Jet Airways
Hotels, car rental, financial, telecommunications, technology, vehicle purchases, fuel products
Earn miles from partner hotels and car-rental companies through the Shop&Miles credit card Free tickets or upgrades for traveller and their companion Classic Card can be used to check in at the self-service kiosks Online check-in Reservation priority Advantageous car-rental rates Meal selections (Additional benefits for higher tier memberships)
Star Alliance and other airlines
Hotel partners, car rental, communications, dining, retail, Mileage Plus credit cards, financial services, and holidays
Award flights from SA to USA One-way upgrades Separate domestic and international check-in Preferential seating and Elite members get extra baggage allowance Star Alliance lounge access for Star Alliance Gold members
Air China, Air Jamaica, Air New Zealand, ANA, bmi, Continental, Caribbean Star, Gulf Air, Haiwaiin Airlines, Jet Airways, Malaysia Airlines, SAS, Singapore Airlines, South African Airways, US Airways, Virgin Blue
Hotels partners, car rental, and credit cards
Earn miles even on discounted fares 200% miles in upper class Chauffeur-driven car to/from airport for Upper Class Numerous benefits for Gold members
Three years
Three years
Points expire on December 31 of the fourth year of earning them
Qantas Qantas Frequent Flyer
Three years
South African Airways Voyager
TAP Air Portugal Victoria
Turkish Airlines Miles & Smiles
Unique selling features
Priority check-in and lounge access (Silver and Gold members only) Guaranteed reservations on fully booked flights (Gold members only)
Yearly
Singapore Airlines KrisFlyer
Continental Airlines, Japan Airlines, Jet Airways, Kingfisher Airlines, Korean Air, South African Airways, United Airlines, Virgin Blue
Non-related point accrual
Hotel partners, car rental, financial, leisure and lifestyle
Malaysia Airlines Enrich
Qatar Airways Privilege Club
Partners
Five years
Three years
Three years
United Airlines Mileage Plus
Non-active account miles expire after 18 months, Frequent Travellers and Senator mileages do not expire provided status is retained
Virgin Atlantic Flying Club
Miles do not expire if members use airline or its partners in three-year period
Lufthansa, Gulf Air, South African Airways
NOVEMBER 2009 • BUSINESS TRAVEL NOW
23
Cotonou can leave the impression that the overpopulated West African city is chaotic. But first-time travellers quickly realise that it is a chaos that works. Natasha Tippel reports.
C
OTONOU is the economic capital of Benin, as well as its largest city. It houses many of Benin’s government and diplomatic services; therefore, it is, effectively, Benin’s capital, even though the official capital is Porto-Novo. The city lies in the southeast of the country, between the Atlantic Ocean and Nokoué Lake. It is a major port and also home to an airport and a railway that links to Parakou.
Caleb FICNER
DESTINATIONS
Cotonou, Benin
Recommendations Fly
The drivers with yellow shirts are called kekenos (bike-man). Kenenos and their zemidjans (motorcycle-taxis) are uniquely Beninese and very common in the country’s urban areas.
■ Interair has been operating to Cotonou for the past eight years. Flights depart Johannesburg on Mondays and Thursdays, returning Wednesdays and Fridays. “Through various NEPAD initiatives, Benin and South Africa are developing cooperation projects especially in the field of communications, IT, transport and tourism. Interair provides an essential air services link between the two countries and business has steadily been on the increase,” says interline manager of Interair South Africa, Morag Lanzendorf.
Interair offers full service in both business and economy classes. The route is operated by Boeing 737 or 727 aircraft. Interair offers connecting services from Cotonou to Bamako, Bangui and Douala in collaboration with Aero Benin. Corporates travelling from SA can also fly from Johannesburg to Cotonou via Lagos, Nigeria on Arik Air. Flights depart Lagos four times a week on Mondays, Wednesdays, Fridays and Sundays at 11h30, arriving in Cotonou at 12h25. Return flights are depart Cotonou at 07h30 and arrive in Lagos at 08h15.
See ■ Popular landmarks in Cotonou include the Friendship Stadium, Cotonou Cathedral, Cotonou Central
Mosque, the Ancient Pont Bridge, the 20-hectare Dantokpa Market and the National University of Benin.
Stay ■ Tribe Communications recommends the following hotel accommodation options when staying in Cotonou: • The Novotel Orisha Cotonou is a three-star hotel with a seafront location in the centre of Cotonou, close to the Palais des Congrès (convention centre) and the International Conference Centre. It has 110 air-conditioned rooms, a restaurant, two bars and five conference rooms for meetings and seminars. The
24 NOVEMBER 2009 • BUSINESS TRAVEL NOW
hotel also has a private car park and a swimming pool. • Right by the sea, the Ibis Cotonou is located in the heart of the business district, ten minutes from the city centre. The hotel offers 101 air-conditioned rooms with WiFi access, three of which are adapted for persons with limited mobility. The hotel also features a bar, the Orisha restaurant and a 24-hour snack service and private parking.
DESTINATIONS
Through various NEPAD initiatives, Benin and South Africa are developing cooperation projects especially in the field of communications, IT, transport and tourism.
Caleb FICNER
Fast facts
Cotton is one of the few products that Benin is able to export internationally. The fibre from the cotton balls are made into sheets of cloth and the seeds of the cotton balls are kept as a by-product. These are made into oil, much like any other vegetable oil, and consumed locally.
• Language: The main languages spoken in Cotonou include the Fon language, Aja language, Yoruba language and French. • Currency: CFA franc • Local time: Benin is one hour ahead of GMT. • Climate: Benin’s climate is hot and humid with two rainy seasons (April to July and September to October) and two dry seasons. From December to January, the city is affected by winds. The annual temperature varies between 18°C and 35°C. • Transportation: The Port of Cotonou is one of the largest ports in West Africa. The city is connected to Parakou in the north of the country by the Benin-Niger railway. Cotonou International Airport provides service to the capitals of the region and to France, as well as the major cities of Benin: Parakou, Kandi, Natitingou, Djougou and Savé. There are also road connections to several neighboring countries: Nigeria, Burkina Faso, Niger and Togo. There are a number of local firms offering car hire in Cotonou. Travellers are required to have an international driving license. • Economy: Cotonou has become a
crossroads of West African commerce. The city is a so-called market town, enabling trade with the countries of the African interior such as Mali, Burkina Faso and Niger. In addition to the port, there is a free trade zone in the interior of the city for use by the landlocked Saharan states. Important manufactured goods include palm oil and cake, brewing, textiles and cement. Motor vehicles and bicycles are assembled and there are also sawmills in the city. Petroleum products, bauxite and iron are major exports. There are also offshore platforms drilling for oil. The city is a centre for the automotive trade, with European brands being sold from vast open-air parking lots. In the Missebo area, Cotonou is a textile market of African Print mainly handled by Indian wholesalers and retailers. • Visas: South African citizens are exempt from entry visa to Benin for a stay not exceeding 30 days. • Requirements: Malaria, Yellow fever, Meningitis and Cholera vaccination card. • Electric power: Electric Power is 220V running at 50Hz. The Plug types used are round pins with ground-view. Sources: Wikipedia and Travelinfo. ■
NOVEMBER 2009 • BUSINESS TRAVEL NOW
25
SPECIALS
DEAL DETECTIVE 2. ZANZIBAR Explore Plus Travel & Tours. Stay for seven nights, pay for five. Packages at Planhotel Mapenzi Beach Club start from R9 627 per person. This includes return flights ex-Johannesburg, airport taxes, airport transfers and accommodation on an all-inclusive basis. Special expires November 30.
3. EUROPE
Afriqiyah Airways. Launch special from Johannesburg to selected destinations in Europe. Return economy class fares are from R3 400 to Amsterdam, London Gatwick, Düsseldorf, Paris and Brussels. Fare excludes airport taxes. Special is valid for travel until December 18. Stay must include a Saturday and maximum stay is two months. All flights are via Tripoli. Economy and business-class specials to other destinations are also available.
4. DUBAI
South African Airways. Special economy class airfares to Dubai – fares are from R4 590 ex-Johannesburg. Fares are valid for sale and travel until December 7, 2009. Fare does not include taxes.
5. USA
Holiday Tours. Disney World special – pay for five nights, stay for seven nights. Rates are from R16 310 pp sharing ex-Johannesburg. Package includes return flights to Orlando, airport/hotel/airport transfers, seven nights Disney World All Stars Resort, seven-day Walt Disney World Base ticket, unlimited use of the Disney transport system, pre-payable airport taxes and current fuel levies. Special is valid from November 29 to December 13.
6. GAUTENG
Stock xchage
Misty Hills Country Hotel Conference Centre & Spa. Summer specials are from R555 pp sharing. Rate includes accommodation in a deluxe room and breakfast. Added value: fruit basket, bottle of house wine in room, spa gift pack and a 20% discount on a Carnivore dinner. Rate is valid from December 11 to January 17.
1. Europe/ASIA Emirates Airlines. ‘European Seat Sale’ – Fares ex-Johannesburg are from R5 213 to London, R5 706 to Athens and R5 713 to Paris. Special fares to 26 NOVEMBER 2009 • BUSINESS TRAVEL NOW
other destinations in Europe, India and Hong Kong are also available. Fares include taxes and are valid for outbound travel until December 7.
7. THAILAND Thompsons Holidays. Phuket – eight-night packages are from R6 229 pp sharing. Package includes return flights ex-Johannesburg, return airport/ hotel transfers, accommodation and daily breakfast. Special is valid from January 26 to March 31. Rate excludes taxes and airline levies, which are about R2 876 per person.
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
9. MAURITIUS Apavou Hotels Resorts & Spa. Special rates are from R7 300 pp sharing. Rate is valid for travel ex-Johannesburg, Durban or Cape Town until December 22. Package includes return flights, return airport/hotel transfers, seven nights’ accommodation on an all-inclusive basis as well as land and water sports as featured by the resort. Rate excludes taxes. Airfare surcharge of R1 370 ex-Johannesburg/Durban and R3 010 ex-Cape Town applies between December 4 and 22. Family rates are also available.
10. LIMPOPO Itaga Luxury Private Game Lodge. Midweek special – rates are from R996 pp sharing per night. Price includes luxury accommodation, high tea, candlelit dinner, brunch and two game drives per day. Special is valid Sunday to Thursday only and a minimum three-night stay is required. Rate expires January 31.
11. PRETORIA or JOHANNESBURG Baobab Tourist Services. Airport transfers in Johannesburg and Pretoria from R350 for a one- to three-seater vehicle. The rates valid until December 31. Larger vehicles are also available. Stock xchage
12. MUMBAI
8. Caribbean Development Promotions. Costa Cruises – Caribbean cruising from R2 715 pp sharing. The rate includes seven nights onboard Costa Atlantica in an inside cabin, all meals and onboard entertainment. Special rates
are available for outside cabins and balcony cabins. Cruises depart Florida with set departures from November 7 to December 12. Rates for departures until March 20 are also available.
Travel Vision. Mumbai City packages, rates are from R6 284 pp sharing. Package includes return airfare ex-Johannesburg, five nights’ accommodation in a three-star hotel, daily breakfast, return airport/hotel transfers and one day’s car hire with driver. Rates exclude taxes of about R1 050 per person. Special expires November 30. Add-on fares ex-South African domestic points are available. DISCLAIMER: All specials are subject to availability, currency fluctuations and seasonal surcharges. ■
NOVEMBER 2009 • BUSINESS TRAVEL NOW
27
ON THE RADAR
A fine state of affairs
Managing a government’s travel requirements is no easy feat. In fact with all the bureaucracies and typical hierarchies, it poses a challenge on many levels. Liesl Venter finds out more.
M
ILLIONS if not billions of rands a year are spent by the South African government to travel. In September this year, Minister of Finance, Pravin Gordhan, in a written reply to a Parliamentary question, said that the National Treasury’s senior staff, excluding the ministry and the director-general, alone spent a total of over R9 million on air travel. The SA government’s spend and way of travel is no different to that of any other government, says Wings Corporate Travel head of operations: SA, Amanda Claassens. “Government travel is a niche that is unique in its requirements and often its methods. And what may sound like bureaucracy and red tape is in actual fact policy and is there for very specific and necessary reasons.” As Gordhan explained at the time when asked why his department could have saved some R3 million in flying senior officials in economy class, rather than first class: “Senior officials are almost always required to work as soon as they land and return as soon as possible. This measure ensures that the department also saves on accommodation costs, as it minimises the number of overnight stays in overseas hotels.”
“Understanding the protocol is very important and a TMC needs to be able to cope with those requirements and know how inherent safety and security is to our operations.” Be it a hire car that has to be picked up ahead of time to ensure the police can ensure it is safe for a minister of the President to travel in, to having hotel rooms checked by the security detail. “There is a lot of detail that goes into government travel management – and keeping a clear head at all times is what makes the difference,” says Claassens. Confidentiality can never be underestimated when dealing with government clients, says Julia Mokgatle, Wings Corporate travel team leader for government and parastatals. “That is one of the reasons why all consultants who work on government accounts are vetted. Being able to deal with the travel arrangements of government employees, whether at ministerial or departmental level, comes with a lot of responsibility and being able to handle these
Security is bottom line “There may be less expensive flights, but they may pose security risks, can’t be changed or have longer stopovers – there are hundreds of variables that play a role,” says Claassens. The bottom line though, she says, is security. “A government and its officials cannot be put at risk and providing travel that is secure at all times is absolutely key to good government management.” Lindani Mbunyuza, Treasury spokesperson, agrees that a proven track record, tax registration and BEE status are all aspects that are important when the South African government specifically appoints a TMC. But ensuring the travellers are always accounted for and moved in a safe manner is just as important. Policy, says Mbunyuza, is there for a reason – not just to ensure that budget and spend is on track, but also to ensure that people are safe. Especially when it comes to ministerial level.
“Being able to deal with the travel arrangements of government employees, whether at ministerial or departmental level, comes with a lot of responsibility and being able to handle these accounts confidently and confidentially is what it is all about.” – Julia Mokgatle
“Government travel is a niche that is unique in its requirements and often its methods. And what may sound like bureaucracy and red tape is in actual fact policy, which is there for very specific and necessary reasons.” – Amanda Claassens
28 NOVEMBER 2009 • BUSINESS TRAVEL NOW
accounts confidently and confidentially is what it is all about.” Mokgatle says all government travel is done around a corporate policy document prescribed by each individual government department. “The policy document is adhered to at all times and it has very clear guidelines from the inceptions stage. It also stipulates all the specific requirements that a government department may or may not have.” Mbunyuza says understanding the various needs of the various government departments are just as important. “The processes and needs within the Treasury may differ from other departments. Our specific process involves obtaining an approved documentation for any travel that should indicate the availability of funds, the purpose of the travel and the period of it.” She says a travel manager who does not understand the importance of policy within a government will struggle to get to grip with this market segment. “There are different classes of travel for different employees and getting authorisation for every single action is a must.” It is not an environment where things just happen, no, everything must get approved – and in government it can take time. “These are all reasons why it is a niche sector, but also that make it such an exciting segment in which to be working,” says Claassens. “Government-trained consultants are able to think out of the box, act fast and be able to offer their client different options to be able to deal with the variety that is often expected. It is a unique environment where if you break the rules, you are out. It is the right way or no way.”
Be prepared Dealing with a government client is far greater than just the TMC, says Claassens, for it is about dealing with the entire travel supply chain. Mokgatle says government has its own challenges. “You must be able to move large groups of people quickly, whilst having to take the policies, such as only being allowed to have a certain number of senior management of one department on the same flight, into consideration while also ensuring the government is seen to be Proudly South African, at a very short notice.” This, she says, while a challenge is also often exciting. “It is so satisfying to be able to meet the requirements, as there is a real sense of accomplishment.” Whether it is flying two ministers to the same place, while not being allowed to have them on the same aeroplane, to taking an entire department to a national event, government travel is unique. “It offers a TMC the opportunity to build a good reputation for themselves,” says Mbunyuza. “Being able to understand that a lot of government travel is decided at a very late stage and having to be able to accommodate changes at short notice is part and parcel of having a department such as ours on their books. Working within a set budget and being able to negotiate favourable rates while sticking to our policy is another.” ■
INSIGHT
A true partnership is a shared journey to create a future for both parties that is better than either could have developed alone. Digby Johnson, TravelWorks founder and owner, says unpredictable trading conditions call for imagination, flexibility, tolerance and genuine partnership.
Into an era of genuine partnership we go
T
Digby Johnson... “The age-old adage of the sum of the parts is always stronger than individual parts must form the basis of a new partnership reality.”
HERE have been significant and positive shifts in the approach to doing business over the last few years between proactive TMCs and like-minded corporate clients. Perhaps you recall how business used to be conducted (and in many cases still is!) and the counter-productive scenarios that resulted? As the service provider-client relationship moves into an era of inclusivity and transparency, it’s worth reminding ourselves how certain widely accepted business practices and norms have mitigated against dynamic, equitable and sustainable business travel partnerships. One such example would be the erstwhile commission-based focus that encouraged some questionable off-field behaviour. But what about the corporates’ contribution to this unequal ‘command and control’ method of engagement? On reflection, it’s been a common and long-term practice
for corporates to marginalise travel strategies and spend by passively giving away their power in decision-making processes to service providers. This has largely been achieved through failure to upskill their travel management staff adequately and further, by sidelining the procurement of travel to ‘non-core business’ status. Today, we see several initiatives that attempt to overcome the perceived inequities in the relationship. These have come about largely due to sheer frustration on behalf of corporations, as most travel agents continually fail to interpret and appreciate the cost-to-service ratio needs of their clients and, vice versa, corporates fail to see the true value travel agents can add. There still exists an unshakeable belief amongst many corporates that the internet presents some sort of salvation for their travel procurement needs. Furthermore, there is a widely held view that travel can be procured more professionally and cost effectively if the corporate embarks upon a ‘we do it ourselves’ strategy. This reactive approach has often resulted in a less efficient and more costly travel portfolio for the corporate, with the travel desk’s true operational costs being transposed under an unrelated line item on the balance sheet, further muddying the waters of the company’s actual travel spend.
So what’s the answer?
What is the key ingredient for creating platforms of understanding between stakeholders’ sometimes disparate business imperatives? How do we find common ground for positive engagement and mutually satisfying outcomes? What does this new form of engagement look like? The global economic contraction presents unprecedented opportunities for service providers and clients to work together. Unpredictable trading conditions call for imagination, flexibility, tolerance and … genuine partnership. Genuine partnerships help develop a spirit of abundance rather than scarcity, find the best long-term solutions for mutual benefit, strive for a synergy of common purpose and build relationships based on respect. As Henry Ford so succinctly stated: “The man who will use his 30 NOVEMBER 2009 • BUSINESS TRAVEL NOW
skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed”. Partnerships also break down counter-productive subterfuge and underhandedness. No one likes to be on the receiving end of one-upmanship or control. Working together towards similar outcomes by listening, empathising, truly understanding and accommodating (not bullying or hoodwinking) makes good business sense! A partnership approach, however, does not mean travel agents don’t have to continue delivering the basics well, i.e. providing exceptional service at competitive prices. But these basics are only minimum entry points for relationship building. Travel agents and suppliers may experience different working relationships with their clients. Yet, increasingly, the great equaliser is that most corporates tend to view these relationships as being critical to their business success. This is reflected in the way the corporate travel management team works with the travel agent on a daily basis and the ease of engagement. It’s a rarity in today’s business travel arena that you still find the passive-aggressive mindset of the ‘agent as producer’, nothing more than a link in the travel service distribution channel. TravelWorks has witnessed a definite transformation within certain suppliers towards building long-term platforms for cooperation with clients.
About TravelWorks TravelWorks strives towards developing and facilitating a harmonious balance between the supplier, corporate and TMC to maintain a well-managed business travel portfolio for corporations that are serious about containing travel expenditure. TravelWorks is an SMME that concentrates on business travel cost-saving initiatives for organisations. Digby Johnson also offers a series of workshops and seminars for company travel managers. TravelWorks is not a travel agent, nor is the company associated with any travel grouping.
DESTINATIONS
The expansion of airline networks, the construction of new hotels and conference centres as well as increased trade links between India and SA have secured India’s place on the corporate traveller’s map. Sue Lewitton finds out more about some of the latest business travel developments.
B
USINESS travellers who regularly use India’s four- and five-star hotels are allowing India’s hotels to survive the recession. This is according to a survey conducted by FICCI (Federation of Indian Chambers of Commerce and Industry), which has shown that India’s hotel industry is on a recovery path. The findings are based on responses from 100 hotels in different categories. Feedback gathered from hoteliers showed that foreign tourist arrivals, particularly those who travelled on business, is one of the first markets to show signs of picking up. “As this segment of tourists is in the catchment area of large hotels, hotels upwards of four-star category are seeing improvement in business,” says FICCI. Within the leisure, business and leisure, and business hotel categories, it is the business segment where a large number of hotels have seen occupancy levels of about 50% to 75% over the last few months. Hotels that deal only in leisure tourists or a mixture of business and leisure have not reported occupancy levels quite as high as the standalone business hotels. Hotel developers are responding to this improved climate by constructing several new business hotels around India. Dilip Puri, ceo of Duet India Hotels, says: “Successful hotels have been those which have been developed in a downturn and opened in a recovering market. This is exactly what we are trying to achieve. With lower land valuations as well as lower project costs, hotels can be built more efficiently in today’s market”.
Several new hotels catering specifically to business travel are being constructed around India. Some developments include: ■ The Four Points by Sheraton Jaipur, City Square – this hotel is a joint development between Duet India Hotels and Starwood Hotels and Resorts. The 115 room hotel will feature function rooms, restaurants and a health club. ■ Duet India Hotels is also constructing a further three hotels at Pune, Ahmedabad and Indore. These hotels will focus on mid-scale and upper mid-scale business travel. ■ Swissôtel is opening a new hotel in Kolkata at year-end. The hotel will be part of City Centre and feature 147 rooms, three restaurants, conferencing facilities and a fitness centre. ■ India is also set to receive its first five-star pure vegetarian hotel in Surat in mid-2010. The hotel is being constructed by the Bhagwati Group. ■ Accor has aggressive expansion plans for India, including a total portfolio of 50 hotels and over 10 000 rooms by 2012. An Ibis, Novotel and Pullman will be constructed at ‘Aerocity’ at Delhi International Airport. There are also five new Novotels and 15 Ibis hotels, with Ibis Pune due to open in November. India’s first Sofitel is scheduled to open in Mumbai in 2010. ■ The Mercure Lavasa will be a 130-room hotel situated in Lavasa. Facilities will include an all-day dining restaurant and bar and business centre. The hotel is located close to Lavasa Lakes Convention Centre.
India Tourism puts the spotlight on Commonwealth Games ■ INDIA Tourism is working to prepare the travel industry for the focus being placed on Delhi as a result of the Commonwealth Games taking place there in October 2010. Overseas offices are promoting the games by arranging interactions and meetings with the travel trade and media through road shows, press meets and India seminars in Commonwealth countries.
The city is doing its part to ensure systems run smoothly during the event, including an upgrade of Delhi’s Indira Gandhi International Airport to handle the passenger traffic anticipated. A new terminal (T3) is being constructed to handle 35m passengers per year. On the hospitality side, an additional 25 000 rooms are being built. It’s expected that 2m tourists will travel to Delhi as a result of the games.
32 NOVEMBER 2009 • BUSINESS TRAVEL NOW
Kathy Nel
DESTINATIONS
India
Travellers should ensure they have reliable transport and guides!
Did you know? • JET Airways Konnect, an all-economy no-frills service, has launched several services on domestic routes previously operated by Jet Airways. The new services will enhance domestic connectivity across its network to/from the major cities of Mumbai, Delhi, Chennai, Bengaluru and Kolkata to several smaller cities across India. Some of the new routes include Kolkata-Bagdogra; Delhi-Pune; Delhi-Guwahati; Delhi-Hyderabad; Mumbai-Udaipur-Jaipur and Delhi-Bagdodgra-Guwahati.
Tips for travellers ■ According to Samantha Shalekoff, new business sales and marketing executive for Carlson Wagonlit Travel, there are a number of health risks to consider and be aware of when travelling to India. “These include Dengue Fever, Malaria and Cholera. It is most important to take the necessary precautions, with vaccinations administered at least two to three weeks prior to departure date.” She adds that food poisoning is a risk so travellers should avoid salads and unpeeled fruit. “All water and ice should be considered contaminated and only bottled water should be drunk. Health facilities in larger cities and towns are adequate, but in rural areas, travellers should ensure they have excellent travel insurance in place prior to travelling to India.”
■ Mike Gray, ceo and president of Uniglobe Travel Sub-Saharan Africa, says travellers should always work with a TMC with offices throughout India. “It’s also important to ensure you understand the cultural and religious traditions of the various areas where you are conducting business.” He adds that travellers should plan around the weather and also ensure they have reliable transport and guides. ■ Kathy Nel, manger for incentives and event management for HRG Rennies Travel, says the roads between cities are not particularly good and travellers should bear in mind that cows are sacred in India, so they have right of way. “Considering this, I would recommend flying between cities or taking the new Cox and Kings train. It is extremely hot, but women do need to keep their shoulders covered so as not to offend the locals.” ■