Business Travel Now August 09

NOW managing your travel spend better

September 2009

A good year!

Naidoo takes a mature approach to travel management

ACT NOW:

Consumer protection is on its way

■ How to maximise your travel budget for the year ahead ■ Win a two-night getaway with BTN and BCD Travel!

■ The dos and don’ts of travel into Africa ■ Is rail a better way to travel?

CONTENTS

Make your connections count

U

NLESS you are in a specific situation yourself, you have no real idea of the nuances and challenges experienced by those who are. Often we think we do, which is where we begin to lose sight of the true meaning of empathy.

Liesl Venter’s article on marine travel offers a brief glimpse into another world, a world filled with seafaring people whose lives are wed to the sea, and the unique challenges experienced by their travel management companies.

According to Martin Knights, a senior marine travel consultant of Wings Corporate Travel in Houston, USA, before consultants can even begin to move their clients around the globe, they first need to understand them and the world in which they work.

Apparently getting sailors where they have to be on time is the difference between a few dollars and hundreds of thousands of dollars – so there is no margin for error.

Similarly, when the new Consumer Protection Act comes into effect next October, there will be little margin for error and Advocate Louis Nel urges travel procurement managers to get ready now before it’s too late, as our Power Panel on the topic will reveal. Travel buyers should start taking steps immediately to see if they’re compliant and greater empathy will be required with regard to understanding consumer rights more comprehensively.

Empathy is also part and parcel of a ‘mature’ travel manager’s role.

According to Jason Naidoo, Goodyear South Africa procurement section head: non-manufacturing indirects, whom we profile this month, it’s senseless to develop a sophisticated T&E policy if the corporate is not mature or serious enough to accept the spend, allowing it to be measured and corrected. Essential in this process – and paramount for successful travel management – is an effective tripartite relationship between corporate, TMC and supplier, he believes. And for this to happen, the relationship needs to be dynamic, with the three parties teaching and learning from each other.

Naidoo’s original perceptions of managing travel have altered since he took up his position and since he’s learned more about the complexities attached to managing the portfolio. To succeed, his scope of focus has widened to include an understanding of how airlines and travel service providers actually operate and how best to respond to these stakeholders.

This understanding of the unique requirements of partners permeates throughout this issue, whether it be about how to utilise a travel management report more effectively or advising your travellers on health and safety issues before they travel (particularly into Africa). It also extends to whether new travel alternatives such as rail (versus air) may be better suited to a particular traveller’s requirements than what is currently offered as the norm.

It’s all about making the right connections, from whatever way you look at it. Authentic connections about what really matters in travel. ■ KIM COCHRANE Brought to you by Now Media, Business Travel Now is a professional travel publication aimed at South African travel procurement decisionmakers in travel-buying companies. This publication aims to reflect an unbiased perspective of the corporate travel industry offering insight and tools encouraging readers to manage their travel spend better.

COVER STORY Goodyear SA’s Jason Naidoo speaks about the importance of corporates being mature and/or serious enough with regard to accepting their travel spend and recognising the importance of it being measured and corrected. Cover and profile images by Tijana Huysamen, taken on location at the Goodyear SA Uitenhage plant in the Eastern Cape.

News

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Profile

6

Destinations

8

Power Panel

14

On the Radar

16

On the Radar

18

Insight

20

Mythbuster

21

Deal Detective

22

How to

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On the Radar

25

New Option

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• SAA offers travel info on-the-go • Ethiopian Airlines purchases 17 new aircraft • Singapore Airlines promotes travel beyond First Class • Get more value with Uniworld’s 2010 river cruises • SAACI – show me the money!

Travel is no spare tyre at Goodyear SA

Travel into Africa

Consumer protection is on its way

Is rail a better way to travel?

All hands on deck! We feature the complexities of managing marine travel

The South African Society of Travel Medicine highlights the importance of medical advice prior to longhaul travel

True or false? Cruise ships are all-inclusive

London, Bangkok, Bali or Singapore – the latest from Travelinfo’s deal detective

How to utilise a travel management report effectively

Travel budgets: what you need to know before planning for the year ahead

Win with BTN and BCD Travel!

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

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

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NEWS

SAA offers travel info on-the-go

S

OUTH African Airways passengers can now access comprehensive travel and airline information from one point of reference, anywhere, anytime, using a capable cellphone device.

The mobile portal allows travellers to access airline flight schedules; directions to airline lounges at airports; flight arrival and departure information; destination information such as weather forecasts; and a currency converter.

The new initiative is in partnership with Star Alliance, as Star Alliance developed the Common IT Mobile Platform, which SAA used to launch its own portal. SAA is the first airline in Africa to have launched the new service, says Mike Re, SAA chief information officer.

• The portal is a universal feed able to access information on any airline and destination.

• Airline customers can also access World Tracer information, which tracks requests made about baggage.

• The portal is accessible by logging on to http://mobile.flysaa.com or http://m.flysaa.com.

• The first phase of the initiative is not controlled by user names and passwords.

Once you enter the address, the information needed is readily available with a few clicks and entries.

• Once you enter the site, the application automatically scales to the size of the handset being used. “This convenient tool means no more clicking away to find the rest of the page not in your view because of the limited size of your cellphone screen.”

• The portal is currently available in five languages, namely English, German, Spanish, French, and Portuguese.

• SAA plans to increase the portal’s functionality with the launch of phase two, which is more interactive, later this year. Customers will have the ability to request frequent flyer mileage status, check notifications on any irregular flight operations (i.e. flight delays) and check flight itineraries.

Ethiopian Airlines purchases 17 new aircraft IN an unprecedented move, Ethiopian Airlines has placed an order for five B777-200LRs from the Boeing Company (valued at $1.3 billion) and 12 A350-900s from Airbus (valued at $2.9 billion). The airline will begin taking deliveries of the B777-200LR in October 2010 and the A350-900 in 2017.

This purchase is in line with the carrier’s fast growth strategy and the decision was made to diversify its fleet type among Boeing, Airbus and Bombardier aircraft.

Ethiopian Airlines has 35 new aircraft on order direct from the manufacturers. In addition

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With the recent service additions to Riyadh and Malabo, Ethiopian Airlines provides services to 34 cities in Africa and to a total of 55 destinations worldwide.

to the above-mentioned orders, the airline has also ten Boeing B787 and eight Bombardier aircraft on order.

These long-term investments will enable the carrier to operate one of the youngest and greenest fleets in Africa.

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

Presently, Ethiopian Airlines operates 34 aircraft, including ten B767-300ER, eight B757-200ER, two B757-260 F, two B747F, one MD-11F, five B737-700, one B737-800 and five Fokker 50 aircraft.

• In phase three, also scheduled to be introduced towards year-end, customers will be able to check-in and board a flight by scanning their cellphone at a boarding gate using 2D barcode technology to be implemented at airports.

SAA’s mobile portal – accessible by using a capable cellphone – allows travellers to access airline flight schedules; directions to airline lounges at airports; flight arrival and departure information; destination information; and a currency converter.

Alitalia widens network with 13 new destinations ALITALIA has announced that it will widen its international and intercontinental network with 13 new destinations, including Cape Town (via Amsterdam), through a codeshare agreement with Air France/KLM. Destinations include: Hong Kong, Singapore, Montreal, Dakar, Abidjan, Lisbon and Nuremberg (via Paris); Dubai and Berlin (via Paris or Amsterdam); Stuttgart (via Paris or Lyon); Bahrain and Abu Dhabi (via Amsterdam).

Alitalia and Air France/KLM have also increased the number of codeshare flights via Paris and Lyon. The following cities can now be reached via both cities: Brest, Clermont-Ferrand, Nantes, Pau (Pyrenees), Rennes, Strasburg, Toulouse, Montpellier, Hamburg and Birmingham.

Alitalia says the new codeshare destinations allow it to strengthen the commercial product offered to its passengers from Italy and to facilitate the increase of international tourist traffic to Italy.

Discover the World Marketing is no longer representing Alitalia in SA so all enquiries should be referred to Air France/KLM.

NEWS

For VIP travellers, the Singapore Airlines Suites offer a personal cabin in the sky.

Singapore Airlines promotes travel beyond First Class UNTIL end-November this year, Singapore Airlines passengers travelling into Singapore in its Suites, the exclusive ultra-luxurious cabin product onboard the airline’s new fleet of A380s, are entitled to a free night at the Raffles Hotel in Singapore (in addition to a discounted fare) so long as the booking is made before November 15.

“We operate this aircraft to six cities in our network, namely Sydney, Hong Kong, Tokyo, London, Paris and from 29 September this year, Melbourne,” says Sally George, market development manager in SA. There are no plans at this stage to operate the A380 on the SA route, she says. The airline utilises a Boeing 777-200ER – designed in the two-class configuration of Business and Economy Class – out of Johannesburg and

Cape Town so for South Africans wanting to experience the Suites, they’d have to fly to Singapore in Business Class and from Singapore Changi Airport they could travel in the Suites to any of the above-mentioned cities.

The promotional fare is valid only on the Melbourne, Sydney, Hong Kong and Tokyo routes, she says, but South Africans returning home from Paris or London via Singapore do, however, qualify for the accommodation offer.

Traditionally, a JNB-SIN-JNB (Business Class) plus SINHKG-SIN (Suites) fare would cost from R42 180 per passenger; with the promotion, this fare is R39 380. The routings via Sydney and Melbourne would normally cost from R62 610 and R64 730 respectively (promotional fares of R59 380 and R61 380). The Tokyo promotional fare is R53 380 (normally from

R55 720). All fares quoted include taxes and fuel surcharges and may vary due to currency exchange rates. The sale period is valid until September 30, 2009, with the travel period valid from August 24 to September 30, 2010.

According to George, when passengers travel in the Suites, they can earn 300% mileage if they are KrisFlyer members.

At Singapore Changi Airport, they also have access to the Terminal 3 SilverKris Lounge and The Private Room, a separate section in the lounge for Suites passengers where they will enjoy personalised waiter service, an à la carte menu, a dining area with pre-set dining tables or a buffet section.

Singapore Airlines operates daily from Johannesburg and three times a week from Cape Town, the latter non-stop from 25 October to 31 January 2010.

Each suite, of which there are only 12 on each A380, comes with sliding doors and roller blinds. They are furnished with a fully adjustable leather armchair. It measures almost a metre wide when its armrest is folded away and converts to a stand-alone bed with a mattress, which during the airline’s signature turn-down service is covered in a duvet and full-sized pillows. The design of the full-flat bed offers customers the choice to rest in a preferred position to read or enjoy movies on their personal 58cm (23-inch) high-resolution LCD monitor mounted on the wall in each suite. For couples travelling together, the beds in the middle two seats can be converted to an optional double bed! The suites also offer a soft leather chaise lounge across from the armchair and a dining table. The cabin offers stowage space for luggage, with a full-length wardrobe within easy reach.

Each suite has a restroom.

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

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NEWS

Get more value with Uniworld’s 2010 river cruises

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ROM the romantic sights of Paris, to the ancient castles along the Rhine to the Danube’s dazzling collection of cities and towns, the Uniworld Boutique River Cruise Collection offers a value-packed European river cruise for everyone, including corporates.

With Uniworld’s 2010 savings programmes, couples can save up to R18 000 by paying in full for their Europe river cruise before 30 September 2009.

For full-ship charters and group bookings, net rates are available as are early booking or pay in full discounts. Groups may earn complimentary tour conductor berths with as few as 10 full-paying travellers on the Europe cruises.

Exclusive charter provides your group with the opportunity to have a company logo and message printed on menus, napkins, daily programmes and room key cards, or company messaging can be delivered through in-stateroom television, as an example.

Corporate groups who don’t require an exclusive full-ship charter will still find that a Uniworld river cruise can satisfy their needs for private meetings or functions.

Uniworld offers 26 all-inclusive river cruises, ranging from nine to 32 days. New for 2010 is ‘Springtime Along the Rhine’, a seven-night cruise, which sails from Amsterdam to Frankfurt with highlights featuring the spectacular Keukenhof Gardens, only open nine weeks a year; Anne Frank House, Kroller-Muller Museum (home to 278 Van Gogh paintings); Cologne’s Roman-Germanic Museum; and the Gutenberg Museum in Mainz.

For wine and food connoisseurs, Uniworld is offering its added-value ‘Epicurean Adventurer Program’ – which includes private wine tastings, cooking demonstrations and tastings – on ten itineraries such as ‘Burgundy and Provence’, ‘Enchanting Danube’, ‘Legendary Rhine’, and ‘Grand European Discovery’.

When planning a 2010 Europe river cruise, add one of Uniworld’s pre- and post-cruise optional land packages to cities such as Amsterdam, Brussels, Istanbul, London, Lucerne, Madrid, Munich, Paris, Prague and Vienna.

Uniworld’s selection of itineraries and deluxe ships accommodate from 82 to 160

In addition to the main lounge, most Uniworld ships have smaller rooms such as libraries, a sun deck patio or a captain’s lounge, which can accommodate 10 to 40 people for meetings.

Projectors, screens and microphones are available.

Refreshments are served during meetings at no additional cost. Uniworld cruise and hotel managers are there to coordinate all programme activities.

guests. Itineraries can be customised and the company offers over 500 departures on more than 40 itineraries sailing on 12 rivers in over 20 countries throughout Europe.

Air news in brief Mansley Apartments ■ ETIHAD Airways has announced that it will begin services from Abu Dhabi to Cape Town on September 30. The new Cape Town flights will operate via Etihad’s current daily A330 service to Johannesburg. It will be Etihad’s second destination in SA and its fifth on the African continent, joining Khartoum, Cairo and Casablanca.

■ ZAMBEZI Airlines has introduced a fourth frequency on Saturdays on its Ndola-Johannesburg route. Flights depart Johannesburg at 11h20, arriving in Ndola at 13h35. The return service departs Ndola at 14h10, arriving in Johannesburg at 16h25.

“This service is seen as a boost for travel to and from the Copperbelt in Zambia and it means that Zambezi Airlines now operates flights ex-JNB to Ndola on Wednesdays, Fridays, Saturdays and Sundays,” says Bets Combrink, gm Holiday Aviation, the GSA for Zambezi Airlines in South Africa.

■ KENYA Airways has increased its Mombasa schedule from 27 to 58 flights a week from Nairobi. Flights are operated by a B767-300ER, which carries up to 250 passengers, to serve the high-frequency Mombasa route on Wednesdays and weekends, depending on demand. The airline also launches three weekly flights to Gaborone, Botswana, on September 3. The Gaborone flights will bring the number of African destinations Kenya Airways serves to 35.

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SEPTEMBER 2009 • BUSINESS TRAVEL NOW

launches online booking system

MANSLEY Travel Apartments has launched an online booking system, specifically for the travel trade that can be accessed via www.mansleyapartments.com by signing up to the Mansley Travel Apartments Membership Programme.

“There is a definite trend of interest in serviced apartments,” says owner of Mansley Travel Apartments (International) Ltd, Sir Richard Rowley.

The new facility has benefits such as 24-hour reservation confirmation (automatic confirmation is also provided on various

apartments); detailed descriptions of properties; sorting by price, property name, and ratings; rates and availability information, including gross rates and reduced rates for members of the travel trade; and a summary of previous bookings made by the member.

Mansley Travel Apartments has properties in Europe, Asia, and Australia as well as in SA with two properties in Cape Town. The group plans to expand operations in SA by adding new properties to its portfolio in Johannesburg.

Mansley Travel Apartments is represented in SA by Independent Travel Solutions.

Luggage hassles? What luggage hassles?

DID you know you can check through your luggage from any airport in the world directly to your destination’s railway station in Switzerland, no matter which airline you are flying?

This means you arrive at Zürich or Geneva and your baggage is automatically forwarded to your destination station, where your hotel will pick it up for you. The service is called Fly Rail Baggage and costs CHF20 (R144) per bag. Reduced prices are available for Swiss International Air Lines firstand business-class passengers and Lufthansa’s Miles&More Hon Circle and Senator members.

When departing Switzerland, you can check in your baggage the day before take-off at your closest railway station and at the same time receive your airline boarding pass. This makes for a hassle-free departure the next day. This service

is available at more than 50 railway stations in Switzerland for all scheduled airlines serving Zürich and Geneva. All you need is your flight ticket or an electronic ticketing number and passport, with visa if required. The service is not available for flights to the US. A ‘Fast Baggage’ service within Switzerland allows you to travel through the country without having to carry your bags around. Just hand in your luggage before 09h00 at your departure point and collect it on the same day any time after 18h00 from your destination station. The cost is CHF20 (R144) per bag. The service covers Zürich and Geneva airports too.

World Travel sells all Swiss Travel System products in SA. For more information about rail travel, please refer to pages 16 & 17.

SAACI – show me the money!

NOW is not the time to turn inward. This was the message from SAACI chairman, Thomas Overbeck, at the opening of the annual national conference of the Southern African Association for the Conference Industry (SAACI) held at the CSIR International Convention Centre in Tshwane recently.

“Tourism is South Africa’s new gold and despite the economic meltdown, people are still travelling and conferencing, albeit in a toned-down fashion. We are a major role-player in the industry and our contributions have made a marked difference to growing the industry. The biggest of these is our cooperation with the Tourism Business Council of South Africa (TBCSA).”

Another strong message to come out of the conference was SAACI’s commitment to green conferences. A first for SAACI was the establishment of a separate ‘Green’ working group to coordinate all planning and operational issues that may impact on the overall environmental performance of the conference as well as a greening session that looked at future trends for SAACI in this regard. “No forward-thinking conference organiser can ignore the impact

By Denise Slabbert

of presenting a green conference today,” said conference chairman, Nigel Walker.

SAACI also reaffirmed its support of Imvelo and involvement with Meetings Africa as well as various local and national tourism indabas.

SAACI has also been involved with the Services Sector Education and Training Authority (SETA) in developing training programmes for the events industry. “In this regard, valuable input has been sourced and supplied by SAACI members, with all of this leading up to the establishment of a new board for training in the events sector,” said Overbeck.

SAACI affirmed its commitment to youth development in the industry with the establishment of a youth chapter. “We are also supporting the National Tourism Careers Expo that will take place in Durban in September. Exposing young people to our industry is the only way we will attract them to join and enhance our vibrant industry,” said national chairperson, Nina Freysen-Pretorius.

Next year ’s SAACI national conference will be held at the Elangeni Hotel in Durban from August 14-17.

Crystal Towers to open in December A new five-star hotel is set to open in December in Century City in Cape Town. Crystal Towers Hotel and Spa is located 12km outside of central Cape Town, with Canal Walk shopping mall in walking distance. Specifically targeting the corporate traveller, the hotel will feature 180 rooms with flat screen LCD TVs, free internet access, executive desks and other business amenities. Facilities include a fine dining restaurant, health spa, gym, swimming pool and a conference centre. The hotel will also offer profiling, adding personal touches to the room before the guest arrives.

New discount card launches EXQUISITE Card is a new discount card for the travelling public, giving an average of 20% off accommodation, car hire and spas across Africa.

Exquisite Card has been created to help fill empty beds by providing business and leisure travellers with a simple way of accessing the discounts usually only given to the travel trade. It is aimed specifically at the increasingly large market of travellers who research their accommodation and car hire needs online and then book directly with suppliers.

Exquisite Card offers reduced prices through a discount card or voucher, which entitles the holder to +-20% discount on more than 5 000 hotel, guesthouse, lodge and self-catering rooms in 12 African countries. The card or voucher is purchased through a secure e-commerce portal at www.exquisitecard.co.za at a cost of R19 for a daily voucher, R390 for a one-year card and R590 for two years.

Exquisite Card has been launched by industry stalwarts Cliff Jacobs (35 years as an hotelier) and Mark Goveia (a hospitality consultant).

■ THE Maldives opened its first Holiday Inn – the Holiday Inn Malé – on September 1. The 15-storey hotel has 117 rooms – 17 superior rooms, 77 deluxe rooms, 13 deluxe ocean-view rooms, nine premier rooms and a presidential suite. It features meetings and conference facilities, food and beverage outlets, rooftop swimming pool, a fitness centre and a spa. The hotel is accessed by a short speedboat ride from the international airport.

■ FAIRVIEW on 14th is Jo’burg’s newest executive suite hotel in the Randburg-Fairland area. The apartments feature fully fitted kitchens, plasma TVs (with DStv), home theatre surround-sound speaker systems, lounges and bathrooms, and a patio. In each of the 50 two-bedroomed apartments (25 of which also include an upstairs loft with WiFi access), underfloor heating and a broadband internet connection are standard. Along with 24-hour room service and reception, other facilities include a business centre, swimming pool and secure lock-up garages.

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

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PROFILE

Travel is no spare tyre at Goodyear BTN spoke with Goodyear SA’s Jason Naidoo to learn more about his views on the corporate travel buyer’s responsibilities around effective travel management.

By Kim Cochrane.

O

Photographs: Tijana Huysamen

F vital importance to a travel manager is the understanding of where the company is in the ‘maturity cycle’ with regard to its approach to – and management of – travel processes, says Jason Naidoo, Goodyear South Africa procurement section head: non-manufacturing indirects.

Naidoo, who is based in Uitenhage in the Eastern Cape, says it’s senseless to develop a sophisticated T&E policy if the corporate is not mature or serious enough to accept the spend, allowing it to be measured and corrected.

Essential in this process – and paramount for successful travel management – is an effective tripartite relationship between corporate, TMC and supplier, he believes. “The relationship needs to be dynamic, with the three parties teaching and learning from each other.”

“It’s senseless to develop a sophisticated T&E policy if the corporate is not mature or serious enough to accept the spend, allowing it to be measured and corrected.”

Understanding where a company is in its maturity cycle with regard to its approach to travel is of vital importance to a travel manager, says Jason Naidoo, who is pictured here at the Uitenhage plant.

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SEPTEMBER 2009 • BUSINESS TRAVEL NOW

In addition, with respect to further facilitating the corporate’s maturity in terms of the travel portfolio, Naidoo believes TMCs are duty bound to keep travel managers informed of the latest trends with regard to their spend. “It would be interesting, however, to hear how travel managers keep themselves informed without TMCs and data-based reports,” he adds.

Naidoo says because T&E is defined as a commodity at Goodyear SA, the procurement focus is applied to the nature of the expense, suppliers with whom the company spends as well as to minimising this expense whilst fulfilling the business requirement.

How it works is that individual requestors communicate their requirements (usually via e-mail) to the American Express Travel Services in-house travel office.

“Once the request has been quoted on, a paper-based travel requisition is filled out and approved. The request is sent to the travel operator for processing. Feedback is between the travel operator and requestor, with any deviations from travel policy reported to me.

The priority, however, will always be to ensure the safety and comfort of our employees whilst on company business at the most affordable cost to company.”

Naidoo joined Goodyear SA as a senior buyer in 2005, but soon became the driver behind implementing and promoting user adoption of the e-procurement platform, Ariba.

“As a result, in October 2007 I was awarded the ‘President’s Award’, an accolade for extraordinary effort and achievement within the company.”

PROFILE

TO MEASURE IS TO KNOW

The economic downturn has presented an excellent opportunity for Goodyear SA to redress its travel policies, corporate deals and traveller behaviour, says Naidoo.

He has been in his current position since February 2008 and his first goal upon taking up the role was to ensure the business requirement was met in a timely manner.

“My original perception of managing travel has altered, as I’ve learned of the complexities attached to managing this portfolio. The scope of my focus has widened to include an understanding of how airlines and travel service providers actually operate and how best to respond to these stakeholders.”

He says some key learnings experienced have been around attempting to understand the airline seat costing mechanism and establishing a matrix to enable comparative analysis.

“It’s also intriguing to witness the ‘together we stand, divided we fall’ approach of airlines – no one breaks ranks. On the lighter side, it’s amusing to understand the rationale used when deciding on a flight – fruit basket versus eggs for breakfast.”

When asked how Goodyear SA has responded to the world’s economic downturn, he says a moratorium on international travel for 2009 was declared. In addition, all same-day trips must be justified as extremely business critical.

Looking into the future of travel ... Jason Naidoo

A reassessment of policy “We’ve also procured videoconferencing equipment. We have a very innovative IT department, which has resulted in the use of Skype and digital IP telephony for international conference calls. Goodyear globally is also a big user of third-party products such as Net Meeting and WebEx to share presentations and project information.”

He says while the economic downturn has been unfortunate, it has presented an excellent opportunity for Goodyear SA as a business to redress its travel policies, corporate deals with airlines and to re-question why travellers need to travel at the times they do and to the destinations using the routes they do.

“Meeting communication and business travel requirements while limiting travel expenses has, however, been a significant challenge for us.

Cost drivers underpinning the price of a ticket are more complex in SA with the overriding driver being the rand-dollar relationship.”

He adds: “One example of better utilisation of our TMC has been to have them arrange and book all conferencing and team-building events, which allows us a single point of contact and ease of spend analysis, as the TMC then captures this data on the monthly report to me. Another saving initiative has been to move our lodge card operation to Air Plus, allowing for an extended payment term.”

He says going forward for the rest of the year and into 2010, it’s prudent to negotiate stay rates and where possible seat costs, as the Soccer World Cup approaches.

“All hotel and B&B pricing should be constantly reviewed to ensure pricing and footprint is in line with destinations flown, especially for example in Sub-Saharan Africa.

My personal prediction for the air travel

business is that the airlines will scale down drastically or remove capacity to avoid price wars and deflation within the industry – this in turn means we need to review the strategies quarterly in order to capitalise on any discounted offerings.”

He says third-party smart tools such as self-booking and outsourcing ventures are evolving and continuing to offer opportunities, but corporates should never lose the internal oversight ability.

“If we encourage our associates to treat T&E spend as if it were their own money being spent, then it’s best we maintain personal oversight and control.

In essence, we need to walk the talk.”

He says industrial engineers have a saying, namely ‘to measure is to know’.

This is very true for travel management, he believes. Always allow the statistics to paint the picture; you merely have to interpret it.

A few tips • Treat this commodity as any other by sticking to procurement basics such as, among others, questioning the real need to travel and keeping service providers on their toes.

• Use the TMC or internal mailing system to keep all travellers up to date with policies and developments.

• Keep a keen eye on the ratio of number of transactions to cost per transaction.

• Endeavour to understand the methods used by the average traveller to settle his account, as this has an impact on the TMC and in turn this reflects in the costing of the TMC to the client.

• A TMC worth its salt would offer electronic billing or seamless integration into most ERP systems.

• Do not fall into the trap of ‘online booking always saves you money’ – read the fine print. Consider the cost to company of the individual surfing the web for those airfares.

Fact file Preferred partners: TMC – American Express Travel Services. Airlines – BA, SAA, Lufthansa, Air France. Car rental – Europcar.

Accommodation – City Lodge Hotels and various alternative options such as Bishops Inn, Brookes Hill Suites and Ibhayi Guest Lodge in Port Elizabeth; Goodnight Guest Lodge, Benoni Pillars Estate Guest House and the Town Lodge Sandton in Johannesburg; African Sands B&B, Dick King B&B and Mama Mia Guest House in

Amanzimtoti/Durban; and in Cape Town, the Bell Rosen Guest House, Town Lodge Bellville and Feathers Lodge.

Top destinations: Local – Cape Town, Johannesburg, Port Elizabeth. Regional – Botswana, Kenya. International – Germany, Luxembourg, France.

Number of travellers: 230, with 100 regular flyers. ■

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

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ON THE RADAR

Into Africa – making the right connections Travelling into Africa can be a difficult and dangerous affair, but having the right connections and armed with some helpful tips, it can be a profitable and worthwhile exercise. BTN takes a closer look. By Natasha Tippel.

B

USINESS travel in Africa can be daunting. Corporates are faced with numerous challenges and obstacles that are unheard of back home. But as business continues to grow at a rapid rate across the continent and more investment opportunities open to South African corporates, travel into Africa remains vital and lucrative.

Prior to travel, corporates are often faced with challenges when applying for visas to African countries.

“Consulates are inconsistent and costs are very high and generally inflexible,” says manager of sourcing control and support for Ericsson Sub-Saharan Africa, Sally Rademaker.

Vaccinations can also be a problem.

Yellow Fever certificates for certain African destinations are mandatory for re-entry into SA. The vaccination, however, lasts ten years so it’s a once-off hassle.

“Make sure all vaccinations are done and visas applied for on time and work these into a factor of travelling so air tickets and travel plans coincide,” advises Kenya Airways gm, Glen Lewington.

Prepayment is also beneficial. “Travel managers should pre-book and pre-pay services before travelling to avoid problems on arrival. This also eliminates the need to carry large amounts of cash or having to deal with problems when paying by credit card,” says Natalie Campbell, owner of Tribe Communications, a Johannesburg-based tour operator that specialises in corporate and leisure travel arrangements on a prepaid basis for all travel within Africa.

When you’re there When booking accommodation, Lewington suggests going with a well-known brand, as hotel accommodation is not usually on par with what SA travellers expect.

Rademaker agrees: “Hotels are very expensive and not comparable with the levels to which South Africans are accustomed.

But it’s possible to negotiate and drive the business to reputable hotels who will take good care of travellers based on loyalty. B&Bs are a cheaper option, but it’s imperative that stringent security checks are undertaken to ensure safety of travellers.”

Corporates travelling into Africa often have trouble paying with a credit card. Carrying large amounts of cash can also be dangerous and is ill-advised.

“Credit cards are not accepted in many places, creating a need to carry large

8

amounts of money around on your person,” says director of business development for HRG Rennies Travel, Bronwyn Philipps.

Travel manager of procurement and logistics for Standard Bank, Sipokazi Dipholo, advises corporates to avoid carrying large amounts of cash on them. “If travellers have to pay in cash at hotels, it’s important they thoroughly check their bills, as sometimes ‘mistakes’ are made.”

Transport problems are another particular challenge when travelling in Africa. “As a result of traffic congestion and crime in certain countries, clients need to be chauffeured, which is an added expense,” says Phillips.

Pick the right partner

Spescom travel manager, Anna Hattingh, agrees: “We find self-drive in many African countries counter-productive. Travellers experience difficulties with congestion caused by great numbers of bicycles, scooters and pedestrians. It can also be difficult or impossible to find safe parking near your destination. Some cities are difficult to navigate and drivers who are ignorant of local conditions can get into trouble, especially at night. Taxis are not necessarily a solution, as the transport industry in some countries is not well regulated and the condition of some of the vehicles poses safety risks.”

In an effort to avoid these issues, Rademaker advises that companies use a service provider to assist with airport transfers and drivers for staff.

Dipholo agrees: “In some countries, our travellers are picked up by local drivers who are employed by the company and can speak the local languages. We also use local transfer companies contracted to the country office.”

Flights and flight delays can also be issues.

“The late departure of aircraft in African countries can set travellers back. Long queues at the airport can also cause delays,” says Dipholo. “Travellers should include ample travel time.”

The key to travelling successfully in Africa is having the right connections.

Rademaker advises that travel managers collaborate with reputable suppliers in Africa where possible to ensure an acceptable level of expertise and professionalism. She also advises that corporates network with companies already entrenched in Africa and copy best practices.

Phillips suggests partnering with a TMC

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

Self-drive in many African countries is often counter-productive.

that has a strong understanding of the challenges of travelling into Africa and has proven experience in this regard.

“Travel managers should ensure the TMC has a strong network across the region – an infrastructure that can provide on-the-ground services, support and backup. They should also ensure that TMC staff are experienced and well trained on applicable destinations as well as able to provide accurate, updated information regarding issues that can affect travel in the region. Effective data management and payment solutions across regional boundaries will enhance business processes for the corporate and these services can be provided by a reputable TMC.” >

Tips for travellers • Make sure someone knows where you are going and provide them with the following details: address of office and hotel, booking reference number, contact number of host in country, contact number of hotel.

• Ensure your itinerary is clearly defined before departing SA. • Find out about social differences before departing SA. • Knowing the airport helps – where ATMs are, check-in, customs, baggage clearance, etc.

• Missing luggage is sometimes an issue. Try to take carry-on luggage only. If you are unable to, ensure you have a set of clean clothes in your cabin bag should your luggage not arrive on the same flight.

• If you venture into shopping centres go with a local driver.

• Shortcuts don’t pay off in the long term. Follow protocol and procedures in the country at all times.

• The traveller’s health and safety is paramount.

Support in these areas must be well defined and easily accessible at all times.

ON THE RADAR

FIND THE RIGHT SERVICE PROVIDERS FOR AFRICA TRAVEL Travel into Africa remains vital and lucrative, particularly as business continues to grow across the continent and more investment opportunities open up to SA corporates.

“Travel managers should partner with a TMC that has a strong understanding of the challenges of travelling into Africa and has proven experience in this regard.” Bronwyn Philipps

“If travellers have to pay in cash at hotels, it's important they thoroughly check their bills, as sometimes 'mistakes' are made.”

- Sipokazi Dipholo

Mozambique air routes to open up

By Chana Viljoen AIRLINES have welcomed the outcome of the recent Bilateral Air Services Agreement (BASA) between South Africa and Mozambique as a step towards opening a heavily restricted route.

Vuwani Ndwamato, director: air transport for the SA Department of Transport (DoT), expects a substantial increase in capacity on various routes between the two countries, averaging around 44%. The current 1 500 seats a week from Johannesburg to Maputo will be increased to 2 500 seats.

Although not all of South Africa’s requests have been met, fair progress has been made. This includes a change from single designation per route to dual designation as well as recognising aviation safety. Ndwamato says the DoT expects a lot of interest from SA airlines to take up the additional capacity.

A new route is also being introduced between Tete and Johannesburg. An airline has already expressed interest in this route, but has not yet made the application. The implementation of the agreement will be in line with the Iata winter schedules (October 25).

Comair has confirmed it will be submitting an application to the DoT to introduce flights to Mozambique and that it will be evaluating all opportunities available.

Comair executive manager: sales and route development, Stuart Cochrane, says: “We are very happy that a historically restricted bilateral has been opened up to allow for additional capacity and competition, a move that will no doubt benefit consumers travelling between the two countries.”

Chris Hoare, Airlink’s chief revenue officer, says the Mozambican DoT is moving in the right direction towards liberalising the regime, but that it is cautiously taking ‘baby steps’ at this stage. “The review has been long overdue and a lot will flow from the new framework, which the department has successfully negotiated with its counterparts.”

Airlink’s plans for Mozambique have not been revealed, but Hoare says the airline is interested in the increased capacity made available by the BASA. 1time has also expressed interest in the destination.

Welcome changes to Arik Air’s flight schedule

By Natalia Thomson THE July 23 schedule change for Arik Air brings welcome same-day connectivity to a variety of domestic Nigerian and west coast African destinations for South African travellers.

The flight from Johannesburg now lands in Lagos at 17h00 as opposed to the previous 19h00 arrival, and in October the schedule will again change to reflect an even earlier arrival, 16h25.

Arik Air, which launched daily flights between Johannesburg and Lagos in June, is operating A340-500 aircraft with 36 premier-class and 201 economy-class seats.

The airline’s fleet has an average age of two years and offers an economy seat pitch that it claims is 50% greater than its competitors, 10 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

as well as free baggage allowance of 90kg for business class and 60kg for economy class passengers.

Soon to be added to the 4 000 flights a month network is Monrovia, Liberia, while flights to New York are expected to be launched by year-end.

Arik Air has changed its Lagos-Johannesburg flight schedule. Flights depart Lagos at 23h15 daily, arriving in Johannesburg at 05h50 the following morning. The return service departs Johannesburg at 11h40 arriving in Lagos at 17h00 the same day. From October 25, the return flight will depart Johannesburg at 11h05, arriving in Lagos at 16h25.

“Make sure all vaccinations are done and visas applied for on time and work these into a factor of travelling so air tickets and travel plans coincide.” Glen Lewington

LAM to take delivery of new aircraft LAM MOZAMBIQUE Airlines recently took delivery of two new aircraft.

The Embraer-190 has replaced most flights operated by the Boeing 737-200, including the Johannesburg-Maputo route. The aircraft is used on Johannesburg flights via Maputo to Tete, Nampula, Pemba, and Lichinga.

The acquisition of the new Embraer-190, which features nine business class seats and 84 economy class seats, is part of LAM’s fleet renewal programme, which will help lower operational costs, resulting in more attractive fares, and improve customer comfort, service quality and safety. The new aircraft are also more environmentally friendly and will help the airline reduce its carbon emissions by up to 50%.

The utilisation of the new aircraft will bring greater stability to the airline’s schedule between the summer and winter seasons.

New prospects The acquisition of the two new aircraft will allow LAM to expand its operations, offering more frequency and capacity. Some future developments include: • A third flight from Johannesburg to Maputo • A fourth frequency to Vilanculous and Inhambane, increasing capacity over the next few months • Working on a timetable for direct flights to Pemba • Opening a Luanda route from October 25, with flights on Tuesdays and Fridays • Increasing flights to Dar es Salaam with a stopover in Pemba • Increasing flights to Nairobi in codeshare agreement with Kenya Airways with a stopover in Pemba • Researching the possibility of re-introducing a Harare route.

ON THE RADAR

Collaborate with reputable partners to ensure an acceptable level of expertise and professionalism.

Ethiopian Airlines Wins the 2009 Airline of the Year Award ETHIOPIAN Airlines was recently named the Airline of the Year 2009 at the African Business Awards.

The award was presented by the London-based African Business and the Commonwealth Business Council (CBC) at a recent ceremony held at the Grosvenor House Hotel in London.

According to the judging panels, the airline was chosen from a pool of nominees based on “solid financial results coupled with distinctive customer service, punctuality and innovative products and services for consumers, especially in opening new routes.”

After receiving the award, Ethiopian Airlines

Did you

know?

director for advertising and promotions, Yeneneh Tekelyes, said: “While we celebrate this award, the recognition of our overall excellence among other African airlines motivates and encourages us to provide and deliver even more products and better services.”

■ Authorities in Rwanda have banned the use of plastic bags in an effort to combat pollution and littering in the country. Travellers to Rwanda should note that it is prohibited to use in or enter the country with any type of plastic bag, including duty free bags.

■ The U$30 (R233) departure tax payable at Zanzibar airport has, as of August 1, been incorporated into the various airlines’ airfares and is no longer to be paid at the airport.

12 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

In brief ■ EFFECTIVE September 15, Air Namibia will introduce a new direct flight from Johannesburg to Lusaka.

The flights are on Sundays, Mondays, Tuesdays, Wednesdays, Thursdays and Fridays with fares from R1 540 excluding airport taxes of about R1 436.

Flights will depart Johannesburg at 08h15, arriving in Lusaka at 10h15. The return service will depart Lusaka at 18h20, arriving in Johannesburg at 20h20.

■ KENYA Airways has reinstated its flights to Kisumu. The airline now operates twice-daily flights to Kisumu using an Embraer E170 jet. Until November, Kenya Airways will partner with Precision Air to service the route as Precision Air’s ATR aircraft can land on the shorter runway during the renovation period. From December onwards, Kenya Airways will continue to operate twice daily on the route.

The airline said the changes were to allow for the planned expansion and renovation of Kisumu’s runway.

Product news

ON THE RADAR

Africa Alert

Looking for some guidance and tips before sending your travellers to African countries?

Vicqui Welton of Fulela Trade and Invest 80 offers some general tips on travelling in Africa....

Fly Kumba to rival Air Zim ■ A NEW airline is scheduled to begin operations in Zimbabwe in September, operating domestic and regional routes.

A group of local investors is setting up a low-cost airline, Fly Kumba, to compete with state-owned Air Zimbabwe.

Airline ce, Lloyd Muchaka, says the main route will be Harare-Johannesburg, hereby “tapping into the more than three million Zimbabweans estimated to be living and working in South Africa”.

Muchaka says Fly Kumba has been modelled along the lines of low-cost carriers in Europe and elsewhere and says he is confident of securing viable business in the market segment.

“We intend to become Zimbabwe’s preferred low-cost airline, delivering the cheapest fares with the highest consumer value and offering world-class service to price-sensitive customers.”

Rezidor to launch Park Inn Tete in Mozambique ■ REZIDOR will be opening its Park Inn Tete in Mozambique featuring 116 rooms, which is scheduled to open at the end of 2010, bringing to 30 the number of hotel rooms in operation and under development in Africa.

“This is our second hotel in Mozambique. During the second quarter we also will open the Radisson Blu Hotel, Maputo,” says Kurt Ritter, president and ceo of Rezidor.

Tete is one of Africa’s most important mining areas and is located on the banks of the Zambezi River in north-west Mozambique. Park Inn Tete will be one of the first internationally branded hotels in town.

The new hotel will also offer an all-day restaurant, a lobby bar, a gym, an outdoor swimming pool and terrace. The 12-hectare development surrounding the building will include residential and retail areas.

Ibis Hotel Antananarivo opens in Ankorondrano ■ The first Ibis Hotel in the Indian Ocean opened in Antananarivo on July 1. Thirty minutes from Ivato International Airport, the Ibis Antananarivo hotel is located in the centre of the Ankorodrano business district, close to the embassies and ten minutes from the Avenue de l’Indépendance. The hotel features 174 air-conditioned rooms, including 12 superior rooms and 24 interconnecting rooms, a bar and restaurant seating 130 people with a terrace overlooking the heated swimming pool and two modular, 30sqm meeting rooms.

Vicqui Welton

• Always allow sufficient time to get to the airport to deal with traffic, check-in queues etc.

• Try where possible to obtain a visa prior to travel – queues in some parts of Africa to obtain a visa on arrival can be very time consuming (those of you who have obtained a visa on arrival in Dar es Salaam will know what I’m talking about).

• Keep a spare change of clothes in your hand luggage (arriving in Lagos for the weekend on a Friday night with no luggage until the next flight on Sunday was quite something!).

• Always carry small USD notes for tips and to get trolleys etc.

• Try to stay at hotels close to where you are doing business, as traffic and the logistics of getting around can be a nightmare.

• Make sure your inoculations are up to date particularly at the moment as all of the airports are on high alert due to Swine Flu. • Try to make sure wherever possible that you have a pre-allocated seat on the flight – this seems to ease check-in and ensure that as long as you are there at least two hours prior to flight departure, you will get on the flight.

• Most importantly keep a sense of humour and an open mind! ■

Doubletree by Hilton comes to Africa ■ THE HILTON Corporation has announced the introduction of its Doubletree Hilton brand in Africa.

The corporation signed two franchise licence agreements in Tanzania – the Doubletree by Hilton Dar es Salaam, Oyster Bay and the Doubletree by Hilton Resort Zanzibar, Nungwi. Both properties are scheduled to open in October.

The Doubletree by Hilton Dar es Salaam is located on the sea at Masaki, a popular suburb and 20 km east of the international airport. The property will feature 158 rooms, an all-day restaurant, a café, outdoor swimming pool with pool bars, meeting rooms and business centre. The Slipway shopping and dining district is also nearby.

The Doubletree by Hilton Resort Zanzibar, Nungwi on the north coast of Zanzibar Island, features 101 rooms, a large outdoor swimming pool, gym, spa and health club facilities, all of which have been extensively refurbished.

Nungwi is a well-established resort destination, also renowned for its fishing village and dhow-making centre. The hotel is about a 45 minutes’ drive from Stone Town and an hour’s drive from the airport.

Bellview suspends Johannesburg route ■ BELLVIEW Airlines has suspended its service between Lagos and Johannesburg, until March 31, 2010.The airline said in a statement that it would maintain its ‘offline’ office in Johannesburg and might return to SA in 2010 ahead of the World Cup Soccer in June. The capacity to service Jeddah has been ‘redeployed’, with three weekly flights between Lagos, Abuja and Jeddah, and increased services to London.

SAA introduces instant upgrade fare ■ SAA has introduced a new product offering between South Africa and Nigeria called instant upgrade fare. The fares allow passengers to book business-class fares, but have the luxury of travelling first class. The fares are valid for sale and travel before November 30 and business-class rulings apply.

Fares are available from R26 830 ex-Johannesburg and US$4 255 (R32 952) ex-Nigeria, excluding taxes.

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

13

The Consumer Protection Act, signed into law a few months ago, may only come into effect in October 2010, but travel procurement managers are warned to get ready now, reports Natalia Thomson.

T

HERE may be no ‘Consumer Protection Act for Dummies’ book yet, but industry experts are warning travel procurement managers to get their ducks in a row before it’s too late.

Panellist MTN’s Warren Tanner Ellis said it best during a recent webinar for Business Travel Now readers on the Consumer Protection Act: “I’m not sure we fully appreciate the impact that this (Act) has on our suppliers and the contractual obligations we have with suppliers. It may be the end of a long journey, but it’s the start of a much longer one.”

The Act is quite general in its current format, but members of the industry are being urged, through their respective forums like Acte, Asata and Barsa, to help the dti define the regulations that will govern the impact on the travel sector.

Benchmark’s Advocate Louis Nel says the industry should start taking steps immediately to start implementing the Act and see if they’re compliant. “If there was one thing that you should do now as a travel manager, it is to do something. You have to go through the Act, extract what applies to your business and start doing something about it. Get your systems right and start training your staff otherwise you’re going to wake up too late.”

“If there was one thing that you should do now as a travel manager, it is to do something. You have to go through the Act, extract what applies to your business and start doing something about it.”– Adv Louis Nel

stock.xchang

POWER PANEL

Consumer protection on its way!

Travel buyers need to brush up on their knowledge of the Act to see if their companies are compliant.

Impact of the Act on corporates International compliance?

Suppliers, including airlines, are concerned the general terms of the Act may actually disadvantage the corporate from a price perspective in the long run. Will travel procurement managers see weakened airline–corporate agreements due to the Act’s regulations?

Says Chris Zweigenthal, ceo of the Aasa: “Without having any regulations in place, the impact of the Act could be to increase the cost to the traveller. The airlines have their own ways of maximising revenue and optimising their inventory. If restrictions are placed on these business practices, this could negatively impact on price.”

A: “One of the problem areas for corporate travel and parties arranging travel on this end is the international market. The Act does say that if you’re providing services or facilitating services by a third-party, that party has to comply with the Act. How are you going to make an overseas service provider, be it accommodation or transport service providers, compliant? What will happen is that if something happens overseas, i.e. if someone has been injured, that institution and any other parties might be held liable. How are you going to enforce this claim?” Advocate Louis Nel

Right to select suppliers?

A: “One of the areas of the Act regards freedom

14 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

of choice and specifically with reference to bundled goods. Where packages are put together comprising various components of travel such as air, hotel and land arrangements, the customer’s right of choice reigns supreme. However, if you can show that the benefits of this particular bundled goods or package of goods outweighs the customer’s freedom of choice through value-adds, bundling would not be in breach of the Act.” Advocate Louis Nel

Loyalty programmes?

A: “Loyalty programmes are currently a huge incentive for travellers to book on a particular airline and obviously there are benefits that come out of this for the traveller. And we know that the airlines in terms of making seats available, which has to be

carefully controlled through yield management systems, can’t always hand over a seat. The way I read the Act is that if I want to book at a peak time, the airline does not have the right to refuse it. It will impact on that ability and again on the effective cost of the operation.”

Chris Zweigenthal

Disclosing information?

A: “The Consumer Protection Act makes us look at what’s good for the consumer. Travel agents are going to have to be very careful about giving the customer the best deal, firstly because of the consulting fee the consumer pays and secondly because of the requirements of the Act. I don’t believe transparency in terms of the Act implies financial disclosure from base price to price sold. There will be a degree of disclosure to the consumer in terms of back-end deals and other incentives, but not total transparency.”

Advocate Louis Nel

Next month…

In our October Power Panel we look at Duty of Care.

POWER PANEL

Warren Tanner Ellis, MTN

Advocate Louis Nel, Benchmark

Chris Zweigenthal, Aasa

The CPA and overbooking An important area for corporate procurement managers is the issue of overbooking and how it will impact on corporate agreements with airlines.

Zweigenthal believes the Act as its stands probably does not allow the airline to overbook. “If this happens it’s going to have a huge cost impact on the airlines. We know that currently depending on the sector we can get a 10%-20% no-show rate on our flights. If you start refusing the ability of airlines to overbook, this could have a huge loss impact for the airline industry.”

Nel agrees that airlines are definitely exposed.

“The Act does state that it is an offense to overbook. It says if you arrange any facilities whether goods or services, and you know at the time that you cannot provide the good or service that is denied, it is tantamount to overbooking.”

But to what extent will passengers need to be compensated, asks Tanner-Ellis. “How far does the Act go in terms of compensating passengers who have been denied boarding? Will compensation be made with interest and then how far does that go? Does that include any costs resulting indirectly from being denied boarding? Where do you draw the line? What if the corporate says they could have won a R200m deal if they’d made that flight?”

Nel says consequential loss has been taken out of the Act. “If you were to make a booking and because of being overbooked, missed the flight and were not able to submit the tender and could have won it, you are only compensated for direct costs including hotel accommodation, meals and renting a car, etc.”

Zweigenthal adds: “The question of paying denied boarding compensation has always been an issue. Certain airlines have their own policies regarding denied boarding compensation so there’s no general rule. But you’ll probably find once the regulations are defined there will be a policy defined across the industry which will probably be a good thing.

“In the EU, the regulations are already quite onerous and in some cases the compensation can even exceed what the traveller originally paid for the ticket. We’re not in favour of applying the EU type regulations because we think it will be quite restrictive.”

Nel confirms that according to the Act the service has to be performed when the traveller has been told it will be performed. “If the service is not performed at the time and date expected, the customer can cancel his booking.

So in effect if you booked for the 10h00 flight and the airline cannot put you on that flight, it would give the consumer the right to renege on the deal.” ■

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

15

Rail – is it the way to travel?

With advanced technology and most of Europe’s rail lines going electrical, travelling by train is quickly becoming the preferred means of travel on the continent. Natasha Tippel reports.

M

ORE corporates are recognising the benefits of travelling by rail, especially when journeying through Europe.

“Corporate travellers are becoming increasingly aware of rail in Europe,” says Xavier Theret, Rail Europe’s sales director responsible for Africa. “And as they want to optimise their time in Europe, they would rather use high-speed trains, as this enables them to travel from city centre to city centre, avoid queues and check-ins, enjoy comfortable seating and have access to facilities that give them the possibility to work on the trains.”

Executive head of strategy, development and marketing for First Car Rental, Melissa Storey, agrees: “The trend is not so much in terms of preferred means of transport, but rather that people travelling for business have less time available to complete their journeys. Therefore corporates choose a means of transport based on the quickest way of getting to a destination. The biggest misconception of rail is that it takes longer than flying. The check-in process combined with the flight time and the wait for luggage could often be better spent on a train, working on your laptop.”

Gathering steam BCD Travel’s strategic business development manager for Africa and Eastern Europe, Thorsten Hild, points out that often travelling by train can be cheaper than travelling by airplane. “A rail ticket from Frankfurt to Hanover with the fast track line ICE costs €80 (R875), while the cheapest available flight is €89 (R973) plus additional costs for a taxi or public transport to get into town. The money and time spent are nearly the same, but the time spent on the train can be used to work instead of queuing at the airport.”

But as product manager of Europe

By Train, Giovanna Green, notes, few corporates have started considering rail as an option if it is offered by their travel procurement company. “Unfortunately, rail is still a fairly new concept in SA and as a result, there is a vast need for training, both on a consultant and client level.”

Yvonne Elford, corporate director for Club Corporate Travel, notes: “The demands of the corporate traveller are often based on time saving and consultants tend to quote an air option because you don’t have to wait for a quote.”

Nevertheless, the trend is gathering steam globally and it is no surprise that the rest of the world is following in Europe’s footsteps. Major business centres around the globe are planning and developing their own rail systems and it may well be that in the next few years, the preferred means of transport will no longer be by air, but by rail.

16 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

Onboard most high-speed trains, travellers can relax on comfortable lounge chairs.

Travel by train in China EUROPE By Train has introduced a new product to its offering for corporates travelling to China – the China Railways Point to Point Ticket.

China has one of the biggest and busiest rail networks in the world, with trains linking almost every town and city. With a ticket on China Railways, corporates are able to travel throughout the country hassle-free.

Regular point-to-point tickets are available in first and second class while sleeper compartments are available for passengers who want to travel overnight, saving on hotel costs.

Pre-booking time is 30 days.

“The money and time spent are nearly the same, but the time spent on the train can be used to work instead of queuing at the airport.” – Thorsten Hild

ON THE RADAR

Rail is still a fairly new concept in SA so there’s a vast need for training, both on a travel consultant and client level.

Rail versus air What are the benefits of travelling by train rather than by aircraft? Product manager of Europe By Train, Giovanna Green, explains…

• Depart when you want – corporates need to be flexible when it comes to changing schedules.

With rail travel, tickets are usually flexible and should there be a need to catch a later train, this can be done without penalties.

• Time is money – rail travel has come a long way since the old steam trains. With the new trains being launched, hours are being shaved off the travelling time between cities. Corporates waste no time checking in and don’t have to hassle with baggage and traffic.

• Reliable and punctual – statistically, rail travel has a higher on-time arrival rate than flights.

Trains are not affected by weather conditions.

• Comfort – onboard most of the high-speed trains, corporates can relax on comfortable lounge chairs that offer sufficient legroom, audio connection and air conditioning. In addition, most high-speed trains offer plug-in connectivity and Wi-Fi so business travellers can work as they travel. Meals are more varied and flexible where clients can enjoy a full meal, freshly prepared, onboard the train.

• Environmentally friendly – rail travel has a minimal effect on the environment when compared to airlines.

Rail travel in Europe speeds up

Passes sold in SA

By Hilka Birns Nowadays, the rail system in Europe is much more advanced and high-speed trains connect most major cities in Europe, a dense network of 240 000km of rail tracks that is constantly being upgraded, says Xavier Theret, Rail Europe’s sales director responsible for Africa.

Twenty years ago, France’s TGV (with a speed record of 574,8km/h) was the only high-speed train on the continent. Today, we also have the Eurostar, which connects London to Brussels and Paris; the Thalys that links Paris to Amsterdam, Brussels and Cologne; the Ave in Spain giving Iberia competition on the route linking Madrid to Andalusia, Toledo and Barcelona; the ICE (Inter-City Express), which connects most cities in Germany and the country to neighbouring Switzerland and Austria; and ES (Eurostar Italia) linking most major cities in Italy.

Theret says rail passes are still the easiest and most effective solution for visitors to Europe. He advises to clients to buy rail passes in SA and tickets are cheaper the earlier in advance they are bought.

• Consecutive Pass: valid for the number of specified days • Flexible Pass: days are not counted consecutively, but can be used alternatively during a certain period • Saver Pass: for two or more passengers travelling together • Eurail Global Pass: valid in 21 countries (now including the Czech Republic) and includes travel on Europe’s shipping lines • Eurail Select Pass: valid in three, four or five adjoining Eurail countries • Regional Pass: valid for two or more countries • BritRail Pass: valid in England, Wales, Scotland and Ireland • One Country Pass: for exploring one country in a short period • France Rail Pass: unlimited travel in France for a specified period • Swiss Travel System: unlimited travel in Switzerland for a specified period World Travel can also issue any point-to-point tickets in Europe, as well as passes and point-to-point travel on Amtrak in the US. ■

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

17

ON THE RADAR

All hands on deck!

Meeting the challenges of the demanding maritime industry is not for the faint-hearted travel consultant. By Liesl Venter.

S

EAFARERS possess many qualities, writes Peter Benchley in the introduction to the book Ocean Planet. They have the ability to endure boredom, loneliness and separation; they have instincts, honed by experience, that trigger instantaneous responses to sudden emergencies; loyalty to one another, coupled with faith in themselves; a fierce independence, sometimes at the expense of comfort and family.

“They are a community of people whose lives are wed to the sea… almost a race apart, though they are, in fact all races, all colours, all creeds.”

And moving them around the globe is first and foremost about understanding them and the world in which they work, says Martin Knights, senior marine travel consultant of Wings Corporate Travel in Houston, USA. Knights says an excellent geographical knowledge is part and parcel of becoming a marine consultant.

“This is an industry that is not guided by the world’s leading airports and their locations, but rather on where ships dock, what visas are necessary and how to move them – usually – very last minute.”

The sailors come from all over and board ships anywhere and everywhere.

Martin Wheeler, sales director of Griffin Travel Southern Africa, agrees: “You never know where a ship is going to be in the world, as there are so many variables that can affect its course or where it is going to dock instead of where it should have docked. Being able to keep up is key – a vast knowledge of geography and being able to deal with last-minute changes after hours of trying to secure a seat is par for the course.”

Raika Naidoo, a senior travel consultant specialising in marine travel for Grindrod Travel, says passion is key to being good at marine consultancy.

“It is very different from normal corporate travel.

Every day is a new day with new destinations and new problems that arise and time does not stand still for any vessel.”

Michelle de Wet, md of Global Marine Travel, says highly skilled consultants able to provide a 24-hour-a-day service is what makes for success.

Most marine travel is one-way, as sailors usually join at one port, but will depart from another possibly on the other side of the globe. It involves major amounts of logistics, says Knights. “In the US, the impact of 9/11 was heavily felt in our industry, as regulations were imposed on who could fly or transit through

where. Not only does the travel consultant have to contend with changes in weather and where the ship is going to dock, but also what the nationality of the crew member being moved is and how to get them on board or off with the least hassle – never forgetting the all-important cost factor.”

According to Dale Randle, Wings Corporate Travel head of Business Development in the UK and Europe, being able to negotiate with airlines is integral. “The industry does not allow for planning too far ahead. Often it is about being able to find last-minute seats at low fares usually in the peak season, while also taking into account that seafarers have more luggage and must be able to enjoy a greater baggage allowance of at least 40kg.”

Good travel management for ship-owning companies involves knowledge and resources, says Randle. Typically sailors don’t have much say in how they are moved around the world. But getting them where they have to be on time is the difference between a few dollars and hundreds of thousands of dollars.

Says Knights: “The knock-on effect of sailors not being on time is very costly and it is therefore important that a consultant is intricately involved with clients to understand their exact needs and requirements.”

For Wheeler, it is all about being able to think out of the box. “You have to be innovative. You must also keep up to date with change in the industry, which includes the legal requirements of the various countries in which the vessel is docking as well as international maritime law.”

Skill makes the difference Highly trained consultants with a key understanding of maritime travel is not an option for TMCs servicing this market, but a necessity, says Ken Tweedie, md of Grindrod Travel.

Naidoo says to handle this type of travel, consultants often need personalities as hard as steel and must be able to handle a lot of pressure at a moment’s notice. “For this type of travel, you must be confident in what you are selling.”

According to Greg Forbes, global head of marketing and communication for Wings Corporate Travel, it is important that a TMC has the global reach to really be able to service the maritime industry.

“A ship leaves when it must leave – and if the cook is not onboard because he has had a delayed flight – the crew is not eating. It is about understanding that everyone on that vessel is important and has a role to play.” – Martin Knights “With the Far East becoming a stronger player in the maritime industry along with the trend to appoint crew from the East, we are opening an office in Singapore later this year in an effort to be able to enhance our service.”

Knights adds: “It’s not just about being another travel consultant servicing a specific field, but rather being a travel logistics consultant with in-depth knowledge and expertise in a specialised field.”

An insider’s view from Safmarine THE very nature of shipping is a key challenge in marine travel, says Paul Daniels, SA-based senior crewing manager for Safmarine.

“It is fast and ever-changing and TMCs dealing with the travel arrangements of seafarers need to be capable of dealing with this challenge all the time.”

According to Daniels, one of the most important aspects required is flexibility.

“Vessel schedules change often and when this happens, a fast response time from the TMC is essential, as information is needed immediately and by a number of parties.”

18 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

This includes the traveller (who could be aboard the ship), the vessel agent (who has to finalise joining formalities) and the vessel (as they now in turn have to arrange the homeward bound seafarers’ travel arrangements), says Daniels.

“TMCs play significant roles in arranging seafarer reliefs. Getting crews to ports on time play an important role in boosting morale for example. A seafarer does not want to hear his relief is not coming due to a lack of flights.”

According to Daniels, these challenges have to be dealt with cost effectively. “Travel

costs account for about 5% of a vessel’s total operating costs and finding options that are keeping costs to a minimum are important.”

To meet corporate needs, it is important that the TMC understands the world of shipping. “Also know the shipping company’s requirements and the trade pattern of vessels. A TMC must be familiar with vessel routes, but also have the ability to negotiate marine fares for unfamiliar routes should the vessel have changed course.”

And, says Daniels, availability all the time cannot be stressed enough, as this compliments the nature of shipping.” ■

INSIGHT

What a pity our business traveller did not have the foresight to consult a travel medicine practitioner.

Whether it’s to prevent travellers’ diarrhoea or a recurring blood clot, as examples, Dr Gareth Brink highlights the importance of obtaining the appropriate medical advice prior to longhaul travel.

The value of a stitch in time

T

HE flight to Singapore landed on time.

Immigration was quick, but then began what seemed to be an interminable wait for his luggage. The night had not been good despite the aircraft’s flat-bed seating configuration. The rush to OR Tambo International Airport had left its mark and he arrived just before closure of the flight.

This was his sixth long-haul flight in as many months and he was becoming quite irritable at the unnecessary delays and problems that any traveller could experience at any airport.

The drive to Malaysia (destination Johor Bahru) started off well, but did not end well.

Congestion at the drive-through facilities was worse than the delays caused in Johannesburg by the Gautrain and road constructions. To add insult to injury, the Malaysian authorities would not allow him to enter and he was whisked away to an office where he was greeted by two gowned, gloved and masked officials. He was quizzed about swine influenza, asked to fill in a form and had his temperature taken.

Fortunately he did not have a fever and he was allowed to proceed after being given a card detailing the symptoms of influenza and medical practitioner contact details should he become ill.

To say that he was exasperated was putting it mildly. What should have been a 40-minute drive had now turned into a 90-minute anxiety producing event and he was late for his meeting. The meeting was near short of disastrous, as the jet lag was definitely making itself felt.

A common affliction

His first night followed the trend of misfortune for at 02:00 he awoke with the inevitable: travellers’ diarrhoea. To compound matters, he had no medication with him and he was to suffer for the next four hours whilst medical help was sought and treatment commenced.

The most common affliction in those travelling from developed to developing countries, other than the usual problems of respiratory tract infections, is travellers’ diarrhoea, which will send travellers running in different ways. This can occur in about 20% - 60% of travellers, depending on the destination and the person’s food risk-taking behaviour.

What a pity our business traveller did not have the foresight to consult a travel medicine practitioner to obtain the necessary medication that would have provided some rapid relief and might even have prevented this unwelcome intrusion.

Three days after returning home, he developed an excruciating cramp in his right 20 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

thigh. A pulled muscle, he thought, ignoring it. Fifteen hours later he was in the intensive care unit being treated for a blood clot in his lung that had evolved from a blood clot in his right leg – the ignored muscle cramp.

“Any person who has had a blood clot is at risk for developing a recurrence when undertaking longhaul travel.”

None of this should have happened.

Following a right knee replacement a year ago, he had developed a blood clot.

Any person who has had a blood clot is at risk for developing a recurrence when undertaking longhaul travel. His risk was further increased in view of the number of longhaul flights he had undertaken over the last six months. Stress too compounds the risk and it was just a matter of time before the inevitable happened – a recurrence. There are other factors that can also increase the risk and travellers must be aware of these.

This condition was known as the ‘Economy Class Syndrome’, but research has shown that there is no difference in the occurrence of this problem whether the person travels business or economy class. And taking aspirin has no preventative effect.

What a pity our business traveller did not have the foresight to consult a travel medicine

Dr Gareth Brink of the South African Society of Travel Medicine.

practitioner to obtain the correct advice on preventing such an occurrence.

There were a number of additional factors that our businessman should have considered so as to reduce the stress of travelling: • Plan properly and take things slower • Stay packed to stop last-minute panic • Ensure sufficient sleep • If travelling east, do not arrange important business meetings for at least 48 hours • Eat correctly and exercise What a pity our business traveller did not have the foresight to consult a travel medicine practitioner to obtain the correct advice. ■

About SASTM – ‘Guiding the profession. Protecting the public.’

The South African Society of Travel Medicine (SASTM) was formed in 2000 with the purpose of addressing the needs of all those involved in travel medicine and health. Its purpose is to guide the profession in all aspects relating to the practice of travel medicine, liaise with the travel industry, consult with relevant authorities, advise the public and collaborate nationally and internationally on all aspects relating to travel medicine. The Society’s goals are to promote excellence in the practice of travel medicine; to act as a local and international reference body on travel medicine; to serve as an advisory body on travel medicine to the South African Department of Health; to promote, facilitate and accredit the education of health care professionals in the practice of travel medicine; to prepare technical guidelines on travel medicine and to encourage excellence in appropriate research and professional publication in travel medicine. SASTM is registered as a Non-profit Organisation 063-296-NPO.

MYTHBUSTER

By Natasha Tippel

Ernst du plessis

Cruise ships are all-inclusive

Reality

T

HIS myth proved a little more difficult than most to bust. Are cruise ships all-inclusive?

Before we set out to verify the statement, we needed to define the term ‘all-inclusive’.

Cruises International md, George Argyropoulos, notes that when clients hear the term ‘fully inclusive’, the items they assume are included are accommodation, three meals daily, drinks (alcoholic and non-alcoholic) and some sports.

“But in the cruise industry, and specifically for incentive and conference groups, fully inclusive means accommodation, unlimited meals, 24-hour room service, entertainment, activities, some non-alcoholic drinks with meals, the use of conference facilities as well as tea or coffee breaks. Such is offered by cruise lines Royal Caribbean International, Celebrity Cruises and Oceania.”

By comparing what a land-based venue offers against what a cruise line does, it is obvious that a cruise is by far more inclusive, explains Argyropoulos. “With a land venue, the organiser has to arrange themed dinners, entertainment, transport and special programmes for spouses in addition to the basic package. All these are automatically taken care of when the venue is a cruise ship.”

Product and contract executive of cruising for Thompsons Holidays, Kay Ellison, agrees: “Most cruises are sold to the public on the basis that the price is all-inclusive, which makes it a very attractive holiday. This usually includes accommodation, three meals per day and onboard activities such as mini-golf, rock climbing or gym facilities, and of course all entertainment.”

“When clients hear the term ‘fully inclusive’, the items they assume are included are accommodation, three meals daily, drinks and some sports.”

Ellison reminds us, however, there are a number of items that guests will be expected to pay for such as beverages and alcohol, spa treatments and day excursions off the ship.

Jane Davidson, md of Development Promotions, a division of which is Development Promotions Cruising, notes that cruise lines that claim to be all-inclusive can be misleading.

“Every company has different policies when it comes to what is included in the cruise fare and what is not, therefore it’s difficult to generalise. It is important for clients to ascertain these variables before booking their cruise holiday.”

Davidson adds that it’s crucial for cruise lines to be transparent. “Gratuities on most cruise lines are obligatory and often they are not prepaid. These and other extra costs that are not stipulated when booking can blindside passengers, ruining their holiday with unforeseen expenses.”

To guard against these extra costs, Ellison suggests that before their departure, guests should enquire whether port taxes and gratuities are included in the cost.

You should also request a list of day excursions and their cost so you can plan and budget in advance. When onboard, guests should watch the daily bulletins for special offers at the spa and happy hour in the cocktail lounges. Also it is a good idea to book early, as many cruise lines offer early-bird discounts. ■ SEPTEMBER 2009 • BUSINESS TRAVEL NOW

21

GOOGLE

SPECIALS

DEAL DETECTIVE

1. LONDON five- and ten-year visas. The first ticket needs to be issued by September 30 and travel is permitted until November 30. The second ticket outbound travel dates are between October 1 and November 30.

Virgin Atlantic Airways. “Visa Fares” offer – purchase two tickets on Virgin Atlantic and get your visa fee back as a discount on the second ticket. Offer is valid on published fares to London for

travel ex-Johannesburg or Cape Town. This promotion is applicable to Upper Cabin, Premium Cabin and Economy Cabin (excludes N class). The visa fee back refund applies to the six-month and two-,

2. EUROPE

4. PHUKET

6. GHANA

Lufthansa German Airlines. Groups’ promotional offer – up to 30% off selected fares. Bookings must be made by September 15. Special is valid for travel from October 25 to March 27.

Club Med. Second person pays less 50% on stay.

First person pays R12 645, second person pays R9 900. Package is inclusive of return airfares ex-Johannesburg, airport taxes and surcharges, return airport transfers, seven-night accommodation on a full-board basis with all meals and selected drinks, range of sports and leisure activities, entertainment and comprehensive travel insurance.

Offer is valid until October 23.

South African Airways.

Promotional fare to Accra – return fares are from R2 650 for travel exJohannesburg. Offer is valid for travel until October 31. Fares do not include taxes.

3. INDIAN OCEAN ISLANDS Thompsons Holidays. Fourteen-night cruise onboard Costa Romantica. Set cruise departures in January, February and March. Prices are from R16 495 ex-Johannesburg and Durban and R16 875 ex-Cape Town. Package includes return flights to Mauritius, all taxes, return transfers, onboard accommodation in an inside cabin, all meals and entertainment onboard the ship, port charges and Costa Cruises insurance.

22 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

5. CAPE TOWN The 12 Apostles Hotel & Spa. Winter special – ‘Hibernate and Rejuvenate’ offer from R1 105 pp sharing per night. Rate includes accommodation with breakfast, 40-minute head and neck massage per person, R240 food and beverage voucher and a movie in the hotel’s private cinema. Special expires October 31.

7. GREECE, TURKEY & CROATIA Development Promotions. Costa Cruises – cruise the Mediterranean from R3 615 pp sharing. Offer includes seven nights onboard Costa Serena in an inside cabin, all meals and entertainment onboard. Rate excludes port charges, gratuities and insurance. Ports of call: Venice, Bari, Olympia, Izmir, Istanbul and Dubrovnik. Cruise departs Venice on October 11 and 18.

SPECIALS

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

9. KWAZULU-NATAL Three Cities. Various weekend specials at the Durban properties. The Westville Hotel - R410 in a standard room, The Royal Hotel - R670 in an Executive Room and the Royal Palm Hotel - R760 for a Studio. All rates are pp sharing per night, valid for Friday, Saturday and Sunday night stays only. Offer expires September 30, quote booking code WINTR.

10. VICTORIA FALLS

GOOGLE

Air Holidays. Three-night packages are from R3 425 pp sharing. Special includes return airfare ex-Johannesburg, transfers, daily breakfasts, two hotel dinners, sunset cruises, guided tour to The Falls, plus 18 holes of golf. Rate excludes taxes of R1 840 per person.

Offer expires October 31.

8. BANGKOK Jetstar Tours. Bangkok special – rates are from R5 350 pp sharing in a double room. Package includes return airfares ex-Johannesburg, five nights’ accommodation at the three- star Indra Regent, transfers and breakfast. Rate does not include airport taxes, which are about R2 600 per person. Special expires September 30.

11. MOZAMBIQUE Mozambique GSA. Four-night packages are from R4 980 pp sharing. Rate is inclusive of return flights ex-Johannesburg, transfers, accommodation in a standard chalet with breakfast and dinner, non-motorised watersports, one snorkel trip and transfers to Portuguese Island.

Special is valid until October 31. Rate does not include taxes, which are about R1 750 per person.

12. BALI & SINGAPORE In-Vogue Tours. Ten-night packages are from R10 020 pp sharing – seven nights in Bali and three nights in Singapore.

Rate is inclusive of return flights ex-Johannesburg, taxes, return transfers and daily American breakfast. Offer is valid until November 30. Package is also valid for travel departing other SA domestic points, but exclude the domestic taxes.

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

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

23

HOW TO

How to utilise a travel management report effectively Effective use of travel management reports not only helps to streamline processes, but can go a long way towards impacting positively on the bottom line. Liesl Venter finds out more about successful reporting.

B

ENJAMIN Franklin once said a penny saved is a penny earned. No truer word could have been spoken.

As belts are tightened, more often than not, the travel budget is the first to be cut. Since corporate travel is not always an option, but essential, one of the best weapons in the travel manager’s arsenal can be the travel management report (TMR).

“Meaningful and comprehensive TMRs are critical intelligence for any company with a significant travel budget, as it gives a comprehensive overview of travel spend,” says Ingrid von Moltke, national sales and marketing manager for Carlson Wagonlit Travel in SA. “For a company to operate effectively in any area, comprehensive and meaningful data related to that area is important. Travel is no exception – reports are used inter alia to validate, interpret and evaluate spend, trends, performance and policy compliance.”

Von Moltke says the benefits of such reports are endless. “Obviously the data is essential for budgeting, but also to leverage spend with suppliers, to track and monitor supplier contracts to ensure that upfront discounts and back-end incentives are applied and achieved, while also monitoring compliance and non-compliance of a company’s travel policy.”

In addition, they also allow for the identification of travel trends, reasons for travel, lost savings opportunities, savings achieved while also tracking travellers for safety and security purposes.

Jim Weighell, Sure Travel corporate manager, says without a TMR, budgeting would be a

“The three key areas of reporting which are still not being used effectively are missed savings opportunities, claims and expense management as well as the pre-purchase/pre-issuing of travel documentation phase.”

– Warren Tanner-Ellis 24 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

‘guessing game’. “There are just too many variables in travel to risk guessing the budget.

Over- or under-spend effects year-end results and the ability to travel effectively.”

He says reports should be analysed frequently and trends checked against business requirements.

“The TMR is arguably the most fundamental requirement in achieving cost-effective business travel. Without it, corporations would be planning budgets with no idea of how the budget was arrived at and whether the spend is effective.”

According to Kananelo Makhetha, md of Connex Travel now trading as BCD Travel, clients are increasingly looking for ways to enhance the management of their travel programme and save on travel spend. To enable clients to have a clear understanding of their travel spend as well as cost-saving opportunities, they require on-time delivery of comprehensive, accurate reports in a format that meets their requirements.

How to make reports work Data for the sake of data is meaningless. In an effort to make these reports work for corporate clients, it is essential that they be presented in a user-friendly format according to each client’s specific needs, agrees Von Moltke.

“It’s very easy to bombard a client with a plethora of data which in itself may be meaningless. The client should be able to identify information required through executive summaries in dashboard format with the ability to drill down into specifics.”

Warren Tanner-Ellis, group travel manager for MTN Group Procurement, says ideally TMRs should provide indicators/information to pre-set objectives by an organisation, otherwise they merely become a time-waster for the TMC and the travel manager. “Therefore the obvious question that must be asked upfront is what do we need this information to show us, based on the needs of our organisations and in my view therein lies the shortfall.”

According to Tanner-Ellis, while much progress has been made in his own organisation to refine reports received, they are yet to reach the stage where they can say all their objectives have been 100% agreed and so therefore some of the reporting is still not used effectively.

“We need to extend our base within MTN, for example, of people receiving meaningful data and in that I mean we need to get more into the numerous business units and provide them with data that can help manage their respective needs.”

He believes the three key areas of reporting which are still not being used effectively are missed savings opportunities, claims and expense management as well as the pre-purchase/pre-issuing of travel documentation phase.

“To enable clients to have a clear understanding of their travel spend as well as cost-saving opportunities, they require on-time delivery of comprehensive, accurate reports in a format that meets their requirements.” – Kananelo Makhetha Weighell says it’s crucial that in-depth transaction and expenditure data, trends, traveller behaviour as well as savings reports based on relevant benchmarks are part of TMRs. “Also travel policy compliance and reasons for any systemic non-compliance are key issues along with supplier trends. These factors allow travel managers to build travel programmes on established fact.”

Von Moltke concurs that consolidated, comprehensive and accurate data from multiple sources are a must for a good report.

“If used effectively, the corporate travel manager will be able to select and monitor their key travel programme metrics against goals and view progress made towards them.”

Tanner-Ellis says it’s imperative that online solutions become part of the reporting process. “A well-scoped out electronic/online travel solution can play a role in assisting with key reporting requirements.”

Von Moltke agrees that reports must be accessible online with drill-down capabilities while also having the ability to change views on data, all the while being in a user-friendly and customisable format. ■

ON THE RADAR

Travel budgets Corporates are drastically reducing their travel budgets in light of the current economic climate, as reflected in the massive decline in business air travel around the globe. By Max Marx.

N

OT only are corporates changing the way they travel, but also the way they do their travel budgets, says Roderick Ross, TravelLinck’s ceo.

“Needing to find ways to achieve more with less in a recession, corporates are looking for ways to act smarter when it comes to travel budget spend.

They want more ‘bang for their buck’ rather than just cutting down on expenses and they are forging closer relationships with suppliers to achieve this.”

Lize du Plessis, FCm’s key account manager: Gauteng, believes corporates are not travelling less, but rather changing the way they travel, downgrading from first to business class, or business to economy.

“They’re looking at low-cost carriers for more affordable rates and downgrading their accommodation choices.”

Ingrid von Moltke, Carlson Wagonlit Travel national sales and marketing manager in SA, says given that spend has reduced through fewer transactions and downgrading, new budgets are more likely to be based on these reduced figures.

The trend now when calculating travel budgets, says von Moltke, is for corporates to actually query the reasons for travel within individual business units. Essential client-facing travel is less likely to be as affected as internal meetings (although several meetings may be combined into one trip, rather than several individual trips) – the latter increasingly being replaced by tele- and videoconferencing where possible.

Mike Gray, Uniglobe Travel Sub-Saharan Africa ceo, says most corporates are looking to shave 25% to 50% off their travel costs and he agrees it’s not necessarily by reducing the amount of travel.

“In fact, the crisis means more meetings within the corporation, as teams struggle with sales, cashflow, productivity, HR and other problems.”

Sally Rademaker, Ericsson Sub-Saharan Africa’s manager: Sourcing Control and Support, says the method of travel

budgeting hasn’t changed, but the values have.

“We are trying to reduce the number of trips and the number of people travelling, where possible.”

Ericsson Sub-Saharan Africa has, in this way, saved about 5% on travel since the crisis hit. Rademaker points out that travel can never be cut at the expense of business.

Kananelo Makhetha, md of Connex Travel which is now trading as BCD Travel, says almost all of BCD Travel’s clients have cut their travel (between 15% and 40%) with non-travel related communication alternatives being considered.

Digby Johnson, TravelWorks ceo, finds corporates budget more for the number of trips they’re required to do to fulfill their work obligations than for travel costs, and adjust their budgets on an ‘average’ trip cost basis.

“It’s virtually impossible to budget for the cost of travel, as each trip is different with variables such as change penalties, cancellation fees, no-show fees and Best Available hotel rates. Any deviation from the initial trip request is going to blow your budget. So most companies deal with the overspend rather than a more precise budgeting approach.” >

Act smarter when it comes to travel budget spend.

Duma Travel’s tips to maximise your spend • Raise the travel spend debate to senior management level, preferably executive management.

• The process can be aided by a structured audit of all travel practices and processes as well as a clear vision and strategy for the travel function created.

• This will need to be followed by an overhaul of company travel policy infrastructure, with policy monitoring mechanisms put in place.

• A consolidated and negotiated supplier set, tracing the company travel footprint, must be established and accompanied by a structured supplier management programme.

• Recognition that travel cost containment is all about influencing traveller behaviour. Change management should be a critical part of this process.

SEPTEMBER 2009 • BUSINESS TRAVEL NOW

25

ON THE RADAR

Budgets – most companies deal with the overspend TMCs report reductions in client travel spend, ranging from 15% in less severe cases to 80% in the worst cases.

“The method of travel budgeting hasn’t changed, but the values have.” – Sally Rademaker Gray says corporates are moving to zero-base budgeting and requiring ROI. Savings are being generated in changing the transaction process flow, which can save time (time =

money – salaries and overheads), transaction costs (fares/prices) and transaction costs of TMCs. For example, an online booking and management tool cuts out time delays in getting quoted, booked and invoiced, saving time and transaction costs.

Ross sees planning ahead as the key success factor in streamlining costs. “We’ve seen two schools of thought regarding travel budgets. The one is to accurately pre-determine the number and nature of trips required for the year, then estimate the travel costs and budget accordingly – this is easier for companies with more predictable business travel. The other is to allocate a certain budget (often based on previous year’s expenses) and then make sure one does not exceed this.

“In the first approach, reducing the cost per trip reduces the overall spend. In the second, while per-trip cost savings may be achieved, overall spend remains as much as the year

before. Yet the corporate would have undertaken more trips and hopefully generated more revenue and goodwill as a result of the travel.”

Whatever the approach, it should be monitored proactively, adjustments made where necessary and the cost benefit of travel analysed frequently, the goals being getting value for money and spending smartly, says Ross.

Du Plessis says corporates are looking at different ways of travelling and increasingly using TMCs who are well placed to facilitate this and respond to their need to budget more conservatively.

“The dominant trend is the cutting of travel spend. The results obtained are mixed at best because the processes are unfortunately disjointed and not informed by a structured and sustainable process.” – Nomvula Mthombeni

Nomvula Mthombeni, Duma Travel md; with Themba Mthombeni, Duma Travel chairman.

26 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

“Knowledge is key to identifying cost-cutting opportunities and recognising changing business environments.

It is also vital for budget planning.”

– Micky de Meyer Looking at next year, says Jim Weighell, Sure Travel corporate manager, procurement managers need to take into account the ‘depressed’ airfare situation prevalent in 2009, particularly on international routes.

“Any market recovery will probably result in airfare increases. During 2010, other factors will impact on budget, not least the FIFA 2010 World Cup (WC2010) event. Basing the 2010 forecast on the 2009 budget will not result in a ‘scientific’ travel plan. It should rather be based on an amalgam of 2008/2009 travel transaction levels, business expectation and external/extraordinary issues such as the World Cup.” Johnson believes WC2010 will play havoc with business travel and believes most organisations will reduce travel substantially for the period. “The cost of a trip in June and July 2010 will be exorbitant. One Sandton guesthouse currently charges our client R695 per night. We were advised the same room during the WC2010 will cost R4 995. If this scenario is the norm, obviously budgeting is going to be virtually impossible.”

ON THE RADAR

TIGHTEN UP! Without good management information and analysis, policy creation and budgeting is inaccurate.

Travel policy management is vital CORPORATES have started realising the impact effective travel policy management and enforcement can have on efficient travel budgeting.

To maximise ROIs on travel spend, cfos and procurement managers are tightening up travel policies and procedures and the policing thereof, says Gray.

Weighell is not convinced that travel policy management in SA corporate head offices is at a sufficiently high level of importance yet, but believes the current economic situation will change this.

“SA corporations should be looking for more effective reporting resulting in travel policy adjustment. Without good management information and equally good analysis, travel policy creation and budgeting is inaccurate. Effective budgeting predisposes appropriate travel policy. Merely reducing travel budgets does not necessarily imply effective usage of the available budget.”

Weighell adds that travel policy should be aligned with business objectives and imperatives, with the budget following from this alignment.

“Without this alignment travel managers risk ‘budget blowout’.”

Makhetha says there should be more focus on travel policy compliance, with respect to pre-trip authorisations and exception management.

Bronwen Kammitsis, Wings Corporate Travel’s Business Development head, agrees. She says while it’s easy to implement a new stricter travel policy, policy conformance is key.

“This is where TMCs add value, especially with respect to the data we’re able to provide back to our clients such as policy compliance, advance purchase reports and cost per mile.”

Johnson says many companies have travel policies that don’t allow for more cost-effective options to be taken, which makes it difficult to contain costs.

Travel business intelligence is key to cutting costs Management information consultancy, Statz, is ideally placed to offer clients business intelligence that can positively impact their bottom line.

Independent management information consultant, Micky de Meyer, analyses raw corporate data and turns it into knowledge. She spent ten years in the travel industry producing MI reports and today as an independent operator still creates and maintains reports for some of Southern Africa’s largest corporates.

Statz offers a host of tailor-made services to corporate clients such as: • Consolidation of client travel data where the client has more than one TMC • Consistency in report format even if TMC is changed • Individual databases for each client enabling year-on-year comparisons • Dashboard (spend, savings and marketshare data at a glance)

Useful technologies and tools ■ TravelLinck: a corporate travel management platform can assist corporates with travel budgeting from requisition through proactive management and reporting on travel spend to policy adherence.

TravelLinck’s innovative quoting module can be used to more accurately estimate future travel costs when determining budgets.

■ Uniglobe Travel has travel expense audit processes, travel policy consulting systems and international and local benchmarking tools in addition to online booking tools, global fare search tools, automated ticketing, online MIS reporting tools and accurate information about past spending patterns and future trends.

■ Sure Travel promotes the use of online management information reporting, which allows for more accurate and up-to-date management of spend and trends.

The company recently commenced implementing Amadeus e-Travel Management (AeTM) on behalf on new and existing customers – a powerful tool that allows Sure Travel to manage forward booking trends, increasingly useful in budget management. It offers,

what is according to Weighell, the first ‘dynamic benchmarking’ measure “that enables the production of reports showing ‘savings lost’ measured against best/lowest price on the day of purchase – information that is far more accurate and relevant than benchmarking against highly variable airline prices”.

■ Wings Corporate Travel’s goData reporting tool enables in-depth analysis on the effectiveness and efficiency of their clients’ travel programmes to see where costs can be reduced.

■ Carlson Wagonlit Travel provides data like average ticket price per airline per routing, transaction numbers per routing per business unit/cost centre and the like.

Based on historical data average increases/decreases per quarter/ year can be shown.

■ FCm Travel Solutions has reports such as spend year on year, exception reports, cost-saving areas and travel policy advice. FCm also shows clients how changes and cancellations lead to unnecessary costs; suggests more restricted seat classes going out, with more flexibility coming back; and assists with creating a proper travel policy. ■ SEPTEMBER 2009 • BUSINESS TRAVEL NOW

27

NEW OPTION

Competition Get maximum punch from your travel spend

O

N ‘Planet Business’, the modern executive often spends as much as 50% of the day away from home. To be competitive, you need to be sharp and on top of things – and that’s difficult if you’re worrying about some unexpected hitch in your travel plans.

On the other hand, managing your travel spend in today’s difficult economy, businesses of all sizes have to operate within smaller budgets with fewer resources.

According to Kananelo Makhetha, md of Connex Travel now trading as BCD Travel, clients are increasingly looking for ways to enhance the management of their travel programme while saving on travel spend.

“To provide our clients with a clear understanding of their travel spend and cost-saving opportunities, they require on-time delivery of comprehensive, accurate reports in a format that meets their requirements,” says Makhetha.

“At BCD Travel, we have acquired state-of-the-art technology, which enables us to revolutionise our clients’ access to – and understanding of – consolidated travel data.”

He continues: “The data contained in our reports enables us to understand our clients’ travel trends and needs, thereby bringing travel expenditure savings to corporate clients through effective travel management services. In addition to the services traditionally provided by travel agencies, we also offer a range of highly effective, flexible business services.”

The motto of ‘Going further together’ is underpinned by additional services offered to clients outside those traditionally provided by travel agents.

“In today’s market everyone is trying to save costs. At BCD Travel, we strive to make travel a positive, enriching experience for our clients so they return again and again,” concludes Makhetha. ■

28 SEPTEMBER 2009 • BUSINESS TRAVEL NOW

Advertorial

WIN a two-night getaway for two with Protea Hotels while driving in Europcar style!

BCD Travel, in conjunction with BTN, is offering one lucky prize-winner a fabulous two-night getaway at any Protea Hotel in South Africa for two people sharing (breakfast included) and three-day car rental in a luxury Group O (Mercedes or equivalent) vehicle from Europcar.

Question: In how many African countries is BCD Travel represented?

To enter all you have to do is answer the easy question above and e-mail your answer to kimcochrane@telkomsa.net.

Entries must reach BTN no later than October 7, 2009.

Please supply us with your name, contact details, company and title clearly. Strictly one entry per person.

Terms and conditions: It is taken that the entrants agree to abide by the rules, which are: the prize is not transferable and may not be exchanged for cash. Staff members of Now Media, the host company or organisation sponsoring the prize, their advertising and public relations agencies, their immediate families, and travel agents may not enter.

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