Travel News Weekly - 10 March 2010

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INSIDE

TRAVEL NEWS WEEKLY

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NEWS

fEaTurE

2010 AirFAreS

TrAve A L Ave inSurAnCe

Airlines could land in hot water

A must-have value-add

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NEWS

FLy or Drive FL What’s the best option?

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Page 10

‘Give us a chance’ – SAA’s Siza TNW’s Melody Brandon speaks to SAA’s newly appointed ceo on her first day in the job…

N

EWLY appointed SAA ceo, Siza Mzimela, has an and internal procedures would of R235m, under difficult affinity for happy endings and her plans for the need to be built on in the economic circumstances. beleaguered airline are no different. coming months.

“I do have a good Despite the problems SAA has experienced and the “Work has already been understanding of some of challenges Siza will face in her new role, she is confident done in this area but we the challenges within aviation that her previous aviation experience and passion for need to build further on and I think I bring a lot to the industry will stand her in good stead to this and ensure we are a the table, including my ability bring a happy ending to years of strife at perfect example of proper to build teams and motivate the national carrier. governance in any state-owned employees to want a common The announcement of her enterprise. Part of growing goal. The most important thing appointment came as an and consolidating routes will I bring is my passion for the independent investigation was be to enter into codeshare industry,” she says. completed into alleged bad agreements with partners Siza’s immediate plans for governance practices by the in Africa.”

SAA include reviewing the airline’s former ceo, With 14 years in SAA preparations made for the Khaya Ngqula. including, among other 2010 Soccer World Cup and Khaya was suspended positions, research analyst, tackling “burning issues” following that need to allegations The importance of the trade to Siza is evident be addressed of bad speedily. by her granting an exclusive interview to governance “Ask me in two and abuse weeks’ time and I TNW on her first day in the job. of SAA’s will have a much procurement system. The executive vp of global longer list for you.” results of the investigation are passenger services and Siza recognises that a good expected to be made public responsibility for the airline’s working relationship with the this month. Since Khaya’s core business global sales travel trade is vital to the suspension, Chris Smythe, and Voyager, as well as board success of the airline. who is now heading up the member of SA Tourism, One of the areas of focus airline’s operations, had been chairperson of the Airlines for the trade, she says, is to acting ceo.

Association of South Africa ensure proper communication.

Photo: Tijana Huysamen “There has been a certain and ceo of SA Express, Siza is Rebuilding and improving amount of confidence lost as well positioned to take up the the lines of communication There has been a certain amount of a result of what has happened new challenge. between the airline and trade confidence lost as a result of what has in the past. There are good Under her tenure as SAX is a top priority for Siza. things that people have done ceo, the regional airline “Please give SAA chance. happened in the past. There are good things and continue to do every day grew in leaps and bounds, Don’t allow one or two that people have done and continue to do but these have not been visible introducing a number of negative actions to dent the every day but these have not been visible in the industry. I hope we can new routes and launching image of the airline. There are rebuild the confidence and Congo Express, a new airline thousands of people who are in the industry. I hope we can rebuild the trust that has been lost.” in the DRC. Last year SA doing their best every day.” confidence and trust that has been lost.

She says proper governance To page 12 Express declared a nett profit

“

”

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NEWS

to the point

☞

Thai Airways has confirmed that it will resume its scheduled flights on the Bangkok-Johannesburg route from May 16. The airline made the announcement in its 2010 summer schedule.

The airline plans to operate four flights a week on Mondays, Wednesdays, Fridays and Saturdays.

2010 airfares could contravene CPA Melody Brandon

A

IRLINES could land in hot water as lack of transparency in quoting and advertising combined with inconsistent policies regarding cancelled tickets over the 2010 World Cup could contravene the Consumer Protection Act (CPA).

The Department of Tourism is now investigating airlines for the alleged lack of transparency, particularly as it applies to “amorphous” taxes, fees and levies.

“Members of the public have the right to know what they are paying for. This matter has been brought to the fore as a result of ticket prices during the World Cup but it is vital that we investigate it in the context of our tourism industry’s long-term sustainability,” said tourism minister, Marthinus van Schalkwyk.

Benchmark’s Advocate Louis Nel argues, however, that the minister’s comments may be premature since the Act doesn’t address the level of transparency airlines will be mandated to provide.

Louis said if airlines contravened the Act, they

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Rubes® By Leigh Rubin

TRAVEL NEWS WEEKLY

Published by Lugan Investments (Pty) Ltd trading as Now Media Printed by Juka Printing (Pty) Ltd Phone: (011) 327-4062 Fax: (011) 327-4094 E-mail: tnw@nowmedia.co.za Web: www.nowmedia.co.za Address: Now Media Centre, 32 Fricker Road, Illovo Boulevard, Illovo, Johannesburg.

PO Box 55251, Northlands, 2116, South Africa.

could face penalties of up to 10% of their annual turnover or R1m, whichever was less.

Meanwhile, kulula.com has challenged SA airlines to lower their fares over the 2010 Soccer World Cup. “It is our policy to rather add more flights than to rely on pushing prices up. If you compare the prices of domestic flights during the tournament, our prices are the lowest, finished and klaar. We invite consumers to compare for themselves and we challenge all airlines to reduce their prices,” said kulula executive manager group marketing, Heidi Brauer.

Comair joint ceo, Gidon Novick, said that to date none of the airlines had responded to the challenge. “The prices are still high.” He said with prices based on supply and demand, there might not be a lot for the DoT to investigate.

1time commercial manager, Desmond O’Connor said: “It says in the challenge that the low fares will not be around for too long and that clients would have to ‘rush’ to get the low fares. If it were a real challenge, then we would challenge kulula to keep their prices low throughout the

World Cup. We advertise our fares as all-inclusive, so I do not think the investigation will apply to us but we would welcome more transparency in the way fares are structured.”

Vimla Maistry, SAA acting head group corporate affairs, said the airline’s lowest class categories were comparable to the prices offered by lowcost carriers. “We are not a low-cost carrier and have the different class categories for those who can afford it. We will not heed to kulula’s call specifically but will monitor demand and will price our fares accordingly.”

Vimla said SAA welcomed the decision to investigate airfares.

“We break down our prices for the consumer already, so there would not be any problem should the ministry want to investigate how our prices are structured.”

Chris Hoare, chief revenue officer at Airlink, said it would be premature to comment on the ministry’s investigation as it would need to see the details. He said: “We are not flying the golden triangle, so we will have to structure our fares for the specific routes we fly.” ■

EDITORIAL Editor: Natalia Thomson nataliat@nowmedia.co.za Sub­-Editor: Ann Braun annb@nowmedia.co.za Cape Town Editor: Hilka Birns hilkab@nowmedia.co.za Journalists: Jeanette Phillips jeanettep@nowmedia.co.za Natasha Tippel natashat@nowmedia.co.za Melody Brandon melodyb@nowmedia.co.za Photo Journalist: Tijana Huysamen tijanah@nowmedia.co.za Founding Editors: John H Marsh (1914-1996) Leona Marsh (1923-2003) ADVERTISING Sales Manager Kate Nathan Advertising Coordinator: Natalie Walker PRODUCTION Design Head: Brendon Bester

katen@nowmedia.co.za nataliew@nowmedia.co.za

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Subscriptions: Subs tvlsubs@nowmedia.co.za Annual Subscription: RSA R490.00 Foreign R730,00 SADC R545,00 TNW Domestic may receive up to 10 copies per subscription to one address

Chill Out in Africa www.andBeyond.com

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2 n Wednesday March 10 2010

QUICK READ FOR DECISION-MAKERS

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NEWS For the record In the ‘Specials Spot’ in TNW dated February 24, it was reported that Singapore Airlines was offering special return airfares to China, Taiwan, Australia, and New Zealand ex-JNB from R5 160, including taxes. The fare, however, excludes taxes. TNW apologises for the error.

Hilton Sandton unveils revamped guest rooms Kate els

T

HE Hilton Sandton is in the process of introducing a new level of de-luxe guest rooms for leisure and corporate travellers. The de-luxe suites, king and twin rooms on the hotel’s second and third floors, will be completed by the end of May. The refurbished rooms offer contemporary design principles with dedicated zones aimed at meeting the comfort and functional requirements of guests.

Three zones divide the area into a work space, a relaxation space and a sleep/rest space.

“The concept of specifically differentiating these three

*

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Friends Fly Free Buy 1 Ticket & your friend flies free From: Johannesburg – Kigali ZAR 4,200

Contact us for other special fares *Terms and conditions apply ●Sales valid until end March ●Travel valid until end May

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remote controlled to run for only a few hours during the day.

The rooms offer new technologies for business travellers, allowing guests to plug their laptop display into a data point for the flatscreen TV. This, says Axel, is ideal for businessmen who need to practise a presentation or would prefer to work on a bigger screen.

The rooms offers conveniences such as UK, USA and European power outlets, iron and ironing board facilities, automatic lights in the wardrobe, individual reading lights above the bed, a security safe and tea- and coffeemaking facilities. n

Fly Assist lends a helping hand Natasha tippel A NEW company, Fly Assist, which was launched in January, offers clients professional, assisted travelling from their airport departure location to their chosen arrival destination and back.

The service is available to passengers with special physical and medical conditions as well as minors travelling on their own or parents travelling with infants and small children who may

need assistance.

Fly Assist will meet the client at drop-off, escort them until they are safely in their seat and support the client for the duration of the flight. On arrival, Fly Assist will help clients with collecting their luggage, moving through customs and finding transport from the airport.

According to founder, Juanita Oosthuizen, a comprehensive questionnaire and discussion of the passenger’s needs

and interests will be conducted prior to the flight. “Every passenger who needs specialised attention during the flight will receive individualised attention geared towards his or her specific needs.”

Trained professionals, for example occupational therapists with a diploma in first aid care, will provide clients with individual attention and assistance. Fly Assist offers services for both domestic and international flights. n

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spaces in the new rooms was vital to how the room came together from an installation point of view,” said gm, Axel Hauser. “Every item installed in the room was moulded to reflect the zone theory and how best each space would work for the guest.”

Hilton Sandton is also making substantial headway towards achieving its goal of reducing energy consumption by 20%. The refurbished rooms will consume 50% less energy than previously. This is made possible through sealing the windows to control temperature, compact fluorescent lighting and the installation of appliances in the room that draw substantially less power.

The mini-bar in the room is

Brought to you by GijimaAst

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● Air Mauritius.. Special promotional fare from R2 990 ex-Durban or Cape Town via Johannesburg. Valid for sales until March 14, travel must be completed by March 20.

Excludes taxes. ● Travellers’ Choice. ‘Escape the World Cup’. Mauritius extended-stay packages from R10 726 per person sharing. Includes return flights ex-Johannesburg, return transfers and 10 nights’ all-inclusive accommodation at Blue Lagoon. Valid June 11 to July 11.

Excludes taxes. Fourteen-night packages also available from R13 635 per person sharing. ● Game Plan Afri-Ventures is offering a special rate in the Nambiti Private Game Reserve in KwaZulu Natal from R1 495 per person sharing. The rate includes full-board accommodation at a four-star game lodge and two game drives per day. Valid until April 30. ● Coastlands Hotel & Resorts is offering a special Easter rate at Coastlands on the Ridge Hotel in KwaZulu Natal from R640 per person sharing per night. The rate includes breakfast and is valid from March 26 to April 6. Book and stay for three nights and get a fourth night free.

Specials Spot

QUICK READ FOR DECISION-MAKERS

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NEWS

Avis is ready for the kick-off Jeanette Phillips

A

VIS Rent a Car has placed its final vehicle orders for the Soccer World Cup period and plans to increase its fleet by around 10% to 15% compared with the same period last year.

According to Wayne Duvenage, Avis ce, the company’s fleet requirement has been largely based on projections relating to the number of inbound visitors to South Africa

during the 2010 Fifa World Cup combined with clearer insight into the reduced local segment’s travel plans during the event.

Wayne said Avis expected a significant drop in demand by the local corporate market during the event and was therefore releasing a “sizeable” portion of its fleet for visitors and fans.

“Having greater clarity on the reduced local travel patterns has enabled Avis to revise its earlier forecast of a 30% fleet growth to

the 15% level.”

Wayne said the challenge was to call the expected number of visitors, with predictions ranging between 150 000 and 450 000.

“More specific to our industry is the need to establish what percentage of these visitors will rent cars, as opposed being bused or transferred. It goes without saying, pressure will be greatest at specific venues on peak demand days, just as the industry normally does

over Christmas in Cape Town, so customers are encouraged to book as early as possible.”

The company says it will not be overpricing its products for the World Cup period and that normal price yielding will be in effect.

“Rates will be no higher than is the case during local peak demand events such as the Cape Argus and summer season demand.”

Avis said it would be holding all its rates and setting fleet aside for its

local contracted customer base, adding a “small daily Soccer World Cup surcharge” to all rentals for additional logistical and manpower costs required during the event.

Avis also stressed the availability of its transfer services with its Point-2Point and Chauffeur Drive divisions. It also said that, as a contingency, it could draw on an additional 700 to 900 vehicles from its one-year-old used-car operations if required. ■

It’s looking good at Insight!

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Prices are down, consumer confidence is up and the bookings are flooding in for Insight Vacations.

This was the word from ceo, John Boulding, on his recent visit to South Africa. New in 2010 are various unique destinations such as the Arctic Circle, Iceland, Morocco and more. Insight is also offering six firstclass tours to Oberammergau. Meanwhile, Insight’s ‘Select’ programme provides itinerary flexibility by allowing travellers to leave their tour early or travel on the entire journey. Travellers are also able to manage their day as they wish. An orientation sightseeing tour is provided in each city and travellers are free to explore on their own or choose from Insight’s ‘Select Experience’ sightseeing packages. Tour directors are available throughout the entire journey to act as a personal concierge. Pictured here with John is gm of Insight Vacations, Sharon Marx Photo: Natasha Tippel

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Travel Insurance With health and safety risks increasingly highlighted in the media, travellers are becoming more aware of their security when going abroad and agents can no longer afford to remain ignorant about travel insurance. Natasha Tippel reports.

What are the pros and cons?

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RAVEL insurance is no longer a nice-to-have but very much a necessity in today’s world.

Professional agents realise this and also recognise the various benefits of selling travel insurance to their clients.

“There is a greater awareness on behalf of agencies to have consultants trained,” says TIC md, George Novis.

“Agents who take their business seriously realise that in order to give an all-round professional service to the consumer, they have to offer value-adds, such as assistance and information on travel insurance products.

“This way, their clients are not tempted to go to their competitors or use the Internet to book their leisure and business trips.”

One such agent, Monica Grose of PTS Travel, says: “If one is a professional travel agent, one does not have the choice of not selling insurance. It is an integral part of any holiday and overseas travel.”

Md of Travelmaster Midrand, Ivan Visée, agrees: “It is the most responsible and professional thing to do in order to ensure that the client has peace of mind.”

Insurance sales are also a great additional revenue stream for agents looking to earn commission.

“The revenue generated from sold insurance policies is potentially great,” says George.

“In addition, client satisfaction levels are a lot higher and it provides an added value, preventing migration to the Internet and competitor agencies.”

"The revenue generated from sold insurance policies is potentially great."

– George Novis However, selling travel insurance can be tricky as clients are not always aware of what insurance coverage they will receive should something happen.

“Most clients think they are sufficiently covered by their medical aid or ‘free’ credit card cover, never mind that they have no idea who to call in an emergency,” says Karen Swaby, independent consultant of Pentravel Cresta. “They also don’t realise that travel insurance doesn’t only cover illness, but baggage, personal liability, personal accidents, money loss and, especially, cancellation cover.”

Director of Constantiaberg Travel, Erika Frost, agrees: “Simply having credit card insurance is not always enough and does not always cover everything. There are lots of exclusions and excesses that clients don’t know about!”

Another problem, says Karen, is that clients claim they never get sick and therefore don’t want to waste money on travel insurance.

Gabor von Moricz, md of Von Moricz Bon Voyage Travel, says clients also complain that the policy is pricey.

“We tell them that if anything should happen, it is actually quite cheap.”

“Clients are unaware of the medical and hospitalisation costs in foreign countries,” says Ivan.

“You have to give them examples of the costs involved in some minor hospitalisation cases.”

Another problem is that when a client has a claim, they do not contact the insurance company but the agent, who they then expect to facilitate the whole claim, leaving a bad impression of the agency when the insurance company does not pay out.

“Agents have no legal liability to the client other than providing them with the correct information,” says George.

“The agent provides an administrative service to the client, however, on buying insurance, the consumer enters a contract with the insurer (for example, TIC), clearing the agent of any responsibility.”

If a client should need or request advice on travel insurance, George advises that the agent refer him or her to the head office of the insurance company, where backup assistance is provided.

But this is not to say that a client will not try to sue an agency, holding them liable for misinformation.

“That is why it is always important for agents to have a procedure and documents in place in the event of a dispute so that there is evidence of what procedures were complied with as well as a record of clients who have declined insurance, with proof of signature,” says George.

Top selling tips

“

Give examples of costs involved.

Irrespective of the insurance offered by credit card companies, the excess is high and it is advisable to sell top-up insurance.

The rates are extremely competitive. If the client refuses to accept travel insurance that has been offered, make sure he or she signs a document declining insurance.

Ivan Visée, md, Travelmaster Midrand

”

“

Tell the client some horror stories about clients who were injured or ill and did not have insurance. Actual costs! Explain the importance of cancellation insurance if they have non-refundable tickets or 100% nonrefundable land arrangements.

Karen Swaby, independent consultant, Pentravel Cresta

”

“

Don’t push insurance if you know your client can get free cover from FNB or Discovery (if they are clients). This will quickly break your relationship with the client. DON’T sell just for the commission.

Angelina Mendes, travel consultant, Sandown Travel

”

“

Familiarise yourself with every aspect of commonly required cover such as for pre-existing conditions, seniors and youth, and which cards allow top-ups for special needs insurance. It's worth the effort as it enhances your professional image.

Monica Grose, PTS Travel

”

Introducing Travel Guard formerly AIG Travel For more information call 0860 100 491 or email travel@dnanet.co.za TNW3812SD

8 n Wednesday March 10 2010

QUICK READ FOR DECISION-MAKERS

Training is a must!

AGENTS often shy away from selling travel insurance, intimidated by the fact that they are dealing with a financial contract and that it is complicated.

“Agents should be open-minded and seek training and education on the subject in order to present a more professional service to their clients,” says George Novis.

Erika Frost: “All agents must go through regular training and updates regarding insurance. Especially agents under 35 who think they know it all.”

Monica Grose suggests workshops that spell out exactly what the key differences between the offerings of the various credit cards are and the differences and benefits of the leisure policy as opposed to relying on automatic insurance from credit cards.

“Many agency owners now require agents to take part in an introductory course before they are even allowed to deal with clients,” says George. “TIC offers travel agents these

intense four- to five-hour introductory courses as well as ongoing product training on system management and selling skills.”

Tracey Krog, product manager and pr for Cruises International, says: “Our training manager, Debbie Georghiou, runs the cruise academy every year and highlights the importance of clients buying the additional insurance offered by the cruise line as it ostensibly acts as a ‘top-up’ to the international insurance policy the clients buy from South Africa.”

“The future is bright for travel agents but only for those who invest in their business, providing added value to their clients,” says George. “Consumers are more educated and aware of their rights.

“As society progresses, consumers demand more from their service providers and agents need to become more professional in their delivery by providing value-added services such as travel insurance.”

Cruising? Make sure you’re covered WHETHER it’s your trip, your possessions, your luggage or your health, travel insurance – and most importantly, the right kind of travel insurance – has become an essential item to pack for smart travellers, says Tracey Krog.

Royal Caribbean and Celebrity Cruises offer clients the ‘CruiseCare Travel Insurance Programme’, which includes the following benefits: ● If your plans go awry and you cancel or your cruise is interrupted (for specified reasons), Royal Caribbean and Celebrity Cruises will waive the non-refundable cancellation provision of your cruise ticket contract and pay you the value of the unused portion of

your prepaid cruise vacation. ● The insurance provides coverage for independently booked air, accident and illness medical benefits, evacuation and baggage protection. ● The CruiseCare Worldwide Emergency Assistance Programme provides 24-hour assistance, including pre-trip health, safety and weather information; assistance with travel changes; lost luggage assistance; emergency cash transfer assistance; medical consultation and monitoring; emergency legal assistance; emergency medical and dental assistance; lost travel document assistance; and emergency medical payment assistance.

Expect the Unexpected

A

couple insured with TIC travelled to London. They needed to curtail their journey due to the fact that the wife’s brother died and they had to return to South Africa to attend the funeral. Sadly, en route to South Africa from London via Dubai, the wife suffered a cardiac arrest and died. TIC’s assistance company arranged for her mortal remains to be repatriated and also arranged a commercial repatriation for her husband.

Argentina, El Salvador, Equatorial Guinea, Ghana, Honduras, Kazakhstan, Latvia, Madagascar, Mauritania, Philippines, Puerto Rico, Seychelles, Sudan, United Arab Emirates, Ukraine, Venezuela and Yemen.

Sudan, Venezuela and Yemen have been added to the Very High category, joining Afghanistan, Congo DRC, Iran, Iraq, North Korea, Somalia and Zimbabwe.

Miles concluded: “Aon believes 2010 will see elevated political risk levels continue before an overall tendency for improving global business conditions becomes established. For many companies and across different sectors, including credit and political risk insurance, the business environment remains uncertain when trading with or investing in politically or economically unstable countries.”

SATIB introduces Guest Crisis Call SATIB Risk Solutions has launched its SATIB24 Guest Crisis Call product.

The coupon is available to corporate companies and the local tourism trade, who will be hosting at least 30 guests over the period June 1 through to July 31.

The coupon includes insurance cover to pay for incident management fees and defined medical evacuation and outpatient intervention costs, including trauma counselling.

“In our 20 years of providing risk solutions to the tourism and hospitality industry, we have found that the ‘Golden Hour’ between a critical incident occurring and appropriate intervention being implemented can be the QUICK READ FOR bUSIESt pEOplE

difference between life and death, or at the very least will have a positive impact on the likelihood of a claim for negligent liability being instituted against the client,” says Des Langkilde, md of SATIB Risk Solutions.

According to Des, the biggest factor is often the delay in getting a foreign guest’s travel insurance or medical aid to authorise medical intervention costs.

“SATIB clients already have access to the SATIB24 Guest Crisis Call facility as a value-added benefit attached to their insurance portfolio, so what we have done with the 2010 World Cup coupon is made this available to the industry at large and the take-up has been phenomenal.”

2) Burial, Cremation or Return of Mortal Remains; and 3) Repatriation of Travel Companion (the husband was assisted with his return journey to South Africa).

You never know what could happen while travelling. Make sure you sell your client a TIC travel insurance policy.

This case highlights a number of important benefits of the TIC product: 1) Journey Curtailment (their journey was curtailed as a TNW3843SD

Don’t let the unexpecteD

spoil your clients cruise holiday

Elevated political risk levels continue this year – Aon POLITICAL and financial instability remain features of the business landscape as a result of the recession, according to Aon Risk Services. The company launched its 17th annual Political Risk Map in a global webcast recently.

Miles Johnstone, director of Aon’s Political Risk team, explained: “Rising risk levels in 2009 have led to a significant volume of credit and political risk claims in international insurance markets, which is driving many of the 18 downgrades in this year’s map.”

Nine countries have been upgraded to a lower risk level: Albania, Myanmar/Burma, Hong Kong, Colombia, South Africa, Sri Lanka, East Timor, Vanuatu and Vietnam.

Eighteen countries have seen conditions worsen leading to a downgrade: Algeria,

result of the unexpected death of a family member);

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The Benefits of RCCL CruiseCare include:

• If your plans go awry and you cancel - or interrupt - your cruise (for specified reasons), Royal Caribbean and Celebrity Cruises will waive the non-refundable cancellation provision of your cruise ticket contract and pay you the value of the unused portion of your prepaid cruise holiday.

• It provides coverage for independently booked air, accident and sickness medical benefits.

Rates from US$29.00* per person. *Terms and conditions apply

A Royal Caribbean Cruises Ltd initiative, proudly represented

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For more information call cruises international on 011 327 0327 or visit www.cruises.co.za

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Wednesday March 10 2010 n 9

NEWS

What's the best option – fly or drive?

Melody Brandon

I

T could be cheaper for soccer fans to drive than fly to their destinations during the 2010 Soccer World Cup. “It depends on the cost factor in terms of the time but in many instances driving to a match city will be far less expensive than flying,” says Avis ce,

Match

Saa

Wayne Duvenage.

In an exercise conducted by TNW, a return flight between Cape Town and Johannesburg over match days could set fans back between R3 038 and R4 898 per person. If a group of four people were travelling together this comes to between R12 152 and R19 592.

If the same group rented a group B or C vehicle and

Kulula

BA

1Time

drove to Cape Town and back, they would be looking at a total cost of between R7 039 and R9 592, or R1 759,75 and R2 398pp respectively.

The rate includes the rate per day, free kilometres, estimated petrol and the estimated cost of toll roads.

“A trip down to Durban from Johannesburg and back, or to Bloemfontein and back would

Mango

be manageable in a day, but if you are looking to go to Cape Town, or Port Elizabeth you would need to plan to take a few days off to travel,” he said, adding that one of the benefits of road tripping would be the opportunity to see the country and to make a holiday out of the experience.

Peter Retief, brand manager at Europcar agrees,

saying the company has seen an increase in requests for car rental over the World Cup. “For long-distance trips, such as Cape Town to Johannesburg one could argue that the convenience of flying outweighs the 1 500km drive. People should look at the pros and cons for both options and decide according to their needs and wants,” he says.

Avis Group B vehicle: VW Polo/ similar. including daily rate and 500km free/day

Europcar Group B VW Polo/similar, including daily rate and 400km free/day

Budget Group C vehicle: Toyota Corolla/similar, including daily rate and 200km free/day

Charge: R2 462 *estimated petrol: R1 800 *estimated toll fees (return): R180 Total (estimated): R4 442

Charge: R4 798 *estimated petrol: R1 800 * estimated toll fees (return): R180 Total (estimated) R6 778

Charge: R4 962 *estimated petrol: R1 800 *estimated toll fees (return): R180 Total (estimated) R6 942

Charge: R5 958 *estimated petrol: R2 500 *estimated toll fees return trip: R230 Total (estimated): R8 688

Charge: R6 862 *estimated petrol: R2 500 *estimated toll fees return trip: R230 Total (estimated): R9 592

JNB-PLZ-JNB Match to be played on June 26 (travel June 25 and 27)

R3 674

JNB-CPT-JNB Quarter-final match to be played on July 3 (travel July 2 and July 4)

R4 898 via Kimberley. No direct flights available

R3 038

R3 229

R4 598

R3 242

Charge: R4 309 *estimated petrol: R2 500 *estimated toll fees return trip: R230 Total (estimated): R7 039

JNB-DUR-JNB Semi-final match to be played on July 7 (travel July 6 and July 8)

R4 502 Return 02h00

R1 738

R2 454

R2 398

R1 121

Charge: R2 232 *estimated petrol: R900 *estimated toll fees: R319 Total (estimated): R3 451

Charge: R2 769 *estimated petrol: R900 *estimated toll fees: R319 Total (estimated) R3 968

Charge: R2 163 * estimated petrol: R900 *estimated toll fees: R319 Total (estimated) R3 382

R2 828 via Durban

Charge: R4 309 *estimated petrol: R2 500 *estimated toll fees: R230 Total (estimated) R7 039

Charge: R5 958 *estimated petrol: R2 500 *estimated toll fees: R230 Total (estimated) R8 688

Charge: R6 862 *estimated petrol: R2 500 *estimated toll fees return trip: R230 Total (estimated) R9 592

CPT-JNB-CPT Final match to be played on July 11 (travel July 10 and July 12)

R3 756

Sold out

R2 338

R2 386

R3 229

R2 223

R4 598

Route not served

Disclaimer: Please note that these prices were quoted in February and are not guaranteed prices. The table serves to show estimated comparisons between driving and flying over the 2010 Soccer World Cup. Calculations include additional kilometres above free km/day.

Airfares ‘could crash’ soon Hilka Birns

A

IRLINES will drop their fares in the next 30 days to fill empty northbound flights, predicts Geneva-based Trafalgar Tours president and ceo, Gavin Tollman.

He told a Cape Town media briefing recently that Trafalgar Tours was also “trying to pressure the airlines” to do so. By his calculation, FIFA still needed to sell 750 000 tickets.

“We will see fares crashing as MATCH releases more and more hotel spaces and it is our intention to be more aggressive to get South Africans to travel and experience Europe over the World Cup.” Gavin said Trafalgar’s 10 n Wednesday March 10 2010

2010 bookings had grown “exponentially” and were up 100% over the same period last year. Trafalgar’s South African bookings to Europe for June to July this year had “grown off the chart”.

Bookings for the period after the World Cup were up 8% on 2008, “which means we have returned to normality”.

He said this was because there was pent up demand for travel from people who put off travel in 2009 because of the recession.

He said 2009 had resulted in an enormous shift in how people bought travel: they now booked late. In South Africa, people now booked one to three months in advance, whereas formerly they would have booked six to nine months in advance.

Speaking on the future of escorted touring, Gavin said 9/11 had resulted in a distinct change in travel patterns. The number of families – sometimes up to three generations – travelling together to long-haul destinations had doubled and they also travelled for a longer duration. Meanwhile the under-25 travelling age group was growing “exponentially”, he added.

He said Trafalgar’s ‘Family Experiences’ brochure had become the company’s single most successful product ever. The reason, he said, was escorted tours were hassle-free and allowed families to bond and youngsters to make new friends while on tour. ■

World Cup – no spin-off for Air Namibia Hilka Birns AIR Namibia’s forward bookings at this stage show it cannot expect increased tourism from overseas during the impending FIFA 2010 World Cup, but the airline hopes an increase in South African visitors will make up for the shortfall.

Gm Southern Africa, Charmaine Thomé, says bookings during the World Cup are “very quiet”. She says the airline’s feedback from Germany and Austria is that fans from those countries will not attend

the World Cup because the flights and accommodation in South Africa are too expensive and because fans will have to travel such long distances to watch the various games.

Instead, Namibia is hoping to benefit from the World Cup through South Africans escaping the event. “We are hoping to see an increase from South Africa during this period as it is a costeffective destination, which offers such diverse activities for families and couples alike,” says Charmaine. ■

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COMMUNITYNEWS

jObS

Births, deaths, marriages, promotions – we want to know! Please fax or e-mail TNW's Jeanette Phillips, at jeanettep@nowmedia.co.za or (011) 327 4094.

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“I was privileged to visit the Winnie Ngwekazi After School Programme in Soweto last year where the children expressed their dreams and love of life through music and poetry. We are confident that the sum donated to the FXB Project will benefit and enhance the lives of these children,” says Clea.

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Appointments & resignations n Dave Bunyard, director South Africa for African Sun Hotels, has resigned from the group, effective the end of February. Seventeen years ago he opened a representative office for the then Zimbabwe Sun Hotels in Randburg. Dave says he

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HE generosity of Air France passengers on the airline’s inaugural flight to New York in November last year has seen over R100 000 donated to a Cape Town-based charity, the FXB Project, which helps 240 youths aged 12 to 18.

Money raised from the auction of 380 seats on the flight has gone towards charities world-wide.

The François-Xavier Bagnoud-FXB International Cape Town After-School Programme aims to break the cycle of Aids and poverty in the city’s shanty towns by empowering young people with education and other critical life skills.

The Air France foundation, established in 1992, gives children and young people an opportunity to return

SpecialiZed Travel perSonnel

Wednesday March 10 2010 n 11

TNW NEWS

ADM penalties loom – LH Natalia thomsoN

L

UFTHANSA will delay until July 1 issuing ADMs for what it calls “misuse of the booking system”.

The airline took an unpopular stance earlier this month when it announced the introduction of a “new fee” against agents deemed guilty of not adhering to the booking rules in various instances (see box below).

Failure to adhere to these conditions, it advised, would result in ADMs from €5 (R52) per segment to €100 (R1 050) per passenger.

An ADM admin fee of R200 would also apply.

Three Cities makes booking easier The Three Cities team proved itself ready for 2010 at its recent workshops held around the country. The workshops focused on properties within a region in an effort to promote agents’ packaging of the properties together in a single holiday. This, says marketing manager, Barbara De Kock, will reduce hassles for agents as they will only have to deal with one central reservations centre. Pictured here (clockwise from left) at the Johannesburg workshop are Cynthia Mahwite, sales co-ordinator; Arno Strydom, sales executive; Craig Parvess, regional sales manager; Barbara De Kock; and Shaun Landing, group sales director

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Agents still sceptical Do you think Siza Mzimela’s appointment as SAA ceo is a sign of better things to come for the airline? n Yes 34% n No 66%

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12 n Wednesday March 10 2010

Airline criticised

The airline has come under fire from the retail community, which states that an ADM cannot be used to collect this fee without talks being concluded to this effect.

Iata Resolution 850m states that ADMs can be

used for purposes other than collecting amounts or making adjustments to agent transactions provided consultation has taken place. Therefore, unless Lufthansa and an agency group or branch agree that ADMs can be used for this purpose, the airline would have to collect the fee by invoice.

But, says Gabriel Leupold, md Southern & Eastern Africa for Lufthansa German Airlines and Swiss International Air Lines, the airline is going ahead.

“Iata Resolution 850m provides that ADMs are used to collect amounts or make adjustments in respect of the issuance and use of tickets (STDs) issued by the agent. The non-issuance of tickets in time or the use of fake ticket numbers is, according to Lufthansa Frankfurt, a case that falls under this resolution.

“The same paragraph 1.2 in Resolution 850m provides that alternative uses of

ADMs may exist provided that consultation has taken place. Consultation does not necessarily mean that agents or agents’ associations have to agree.”

Trial period

Lufthansa, he adds, will give the market a chance to adjust by introducing a twomonth trial period so that agent chains can ascertain the volumes anticipated.

“Airlines suffer huge monetary losses through the misuse of the booking system. An empty seat is a perishable and can never be sold again. A fake seat booking not only blocks the sale but it is also an additional GDS cost. To protect Lufthansa against these losses, the airline has been forced to revert to these measures.”

Lufthansa, says Gabriel, does not want to “punish” agents for mistakes. Rather, the airline hopes to prevent the “misuse” of the system resulting in “huge costs” to the airline.

Watch out for… ● Inactive segments: GDSs charge airlines for segments coded HX/NO/UN/UC if not removed from PNRs 24 hours before departure. ● Fictitious names: Bookings made without a real passenger as well as test bookings. ● Fictitious ticket numbers: A fictitious ticket number in the booking, i.e. not issued for

this specific passenger and routing. ● Fictitious groups: Individual bookings for more than 10 passengers travelling together. ● Fictitious reservations: Bookings without real passengers and made with any other intention than to sell a ticket. ● Fictitious segments:

Segments not needed and made with any other intention than to sell a ticket. ● Churning (ticket time limit bypass): Actions aimed to bypass the ticket time limit determined by the fare type. ● No shows without a ticket: Segments booked without a ticket being issued and not cancelled before flight departure. n

‘Give us a chance’ – SAA’s Siza From page 1 Government and industry leaders have applauded Siza’s appointment, saying she is, without a doubt, the best person for the job.

“I have the greatest amount of support for Siza’s appointment and absolutely back her. I have known her since she joined SAA and in her position as the chairman of the Airlines Association.

“I think she has all the qualities and business acumen to take SAA to new heights. She needs to build up a good team but I have no doubt that she has a strategy and knows what to do,” says Airlines

Association of South Africa ce, Chris Zweigenthal.

Board of Airline Representatives of South Africa ceo, Allan Moore, agrees: “I have found Siza to be a good leader; she is capable and knows what she is doing.”

Robyn Christie, ceo of Asata, says the organisation is “absolutely delighted” with Siza’s appointment.

“It has been far too long without a formal appointment.

“I commend the SAA board on their decision. Siza has credibility and experience within the industry and is well respected.”

Michael Tatalias, ceo of Southern Africa Tourism Services Association, says the appointment of Siza was an indication that government had heeded the call from the public and private sector to fill important positions with experienced people.

“It is great that SAA has a ceo with hands-on, relevant experience and the business acumen to run a successful airline,” he says.

The Tourism Business Council of South Africa says Siza’s appointment is not only key for SAA, but for the industry as a whole. n

Take a look at our exclusive one-on-one interview with Siza Mzimela on eTNW this week.

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