Travel News Weekly

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Southern Africa’s Travel News Weekly

August 5 2009 I No. 2069

Terms and conditions apply.

086 11 00 424

www.budget.co.za

INSIDE

TRAVEL NEWS WEEKLY

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News

feature

APP

agentzone

hospitality

Another cost for passengers? Page 4

Naked agent

Hotel brands need to up their game Page 10

Go all out to make the sale! Page 14

Airlines try to pass credit card buck Melody Brandon

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SATA has joined the World Travel Agents Associations Alliance (WTAAA) in condemning United Airlines’ move to transfer credit card merchant fee costs to travel agents in the United States, with all parties waiting for the outcome of a congressional hearing on the matter, due to take place in September. “It is a sensitive issue. At this stage it is a proposal by the airline and may not necessarily happen, but if United does institute this, then other airlines will follow,” said Asata ceo, Robyn Christie. United informed US travel agents that, as of July 20, they would no longer be able to use the airline’s merchant facility when selling UA tickets but instead would have to use their own. “Globally, with the exception of Australia and the United Kingdom, credit card merchant fee contracts prevent any merchant passing on additional fees to a consumer for the use of a credit card. Obviously United is aware of this and is therefore passing those

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charges on to travel agents, as they know the agent will have no choice but to pass those charges on to the customer,” said WTAAA chairman, Mike Hatton. The WTAAA has asked United not to go ahead with its plans yet and has called for congressional hearings to take place in the next few months. If plans go ahead, hearings will take place before the house of commerce, trade and consumer protection subcommittee. Robyn said Asata would have to wait for these hearings to take place, before anything could be done.

Implications for agents

Robyn added that, should United be given the go-ahead and other airlines followed suit, the implications for travel agents would be huge. “There is definitely a knockon effect. The agent will have two choices. Either to take the knock and pay 2% or 3% of the ticket in merchant fees, or to only accept cash, in which case their Iata guarantee will be increased. If they choose to pay the merchant fee they will also lose out. While 2% of a cup

of coffee is nominal, 2% of a R10 000 ticket is a different story. It is a loss of revenue for the travel agent, no matter what the percentage,” she said. Cheryl Watt, director of Development Training Strategies, said the client could also lose out if they had to pay cash, as credit card transactions for airline tickets included insurance on the ticket. “The travel agent will be in a catch-22 situation if this were the case,” she said. “It will be interesting to see what action credit card companies take in the face of this attempt to circumvent the terms of their merchant agreements and penalise individual card holders,” said Mike. Robyn says the airline could be using the proposal to try to drive online sales in an attempt to control costs, “a lose, lose situation for everyone”. “We don’t want to blow the issue out of proportion, but we are monitoring the situation closely. The implications of this move by United are certainly of great concern and we will not sit by and watch it happen.” To page 16

Thompsons’ new Disney! Thompsons Holidays has just launched its new Thompsons Walt Disney World Collection filled with helpful information to help you choose the right resorts, park tickets and dining plans for clients. Packages include return flights to Orlando on Delta, transfers to Walt Disney World, seven nights’ accommodation and entry to a different theme park each day. Inviting you to share the magic are Dumisani Khumalo Thompsons Holidays product co-ordinator – America; and Henuti Sukha product assistant – America Photo Tijana Huysamen

‘BAR is here to stay’ – hotels Melody Brandon HOTEL executives say that best available rate (BAR) is here to stay despite tour operators’ assertions that it will be a “thing of the past” after 2010 is over and hotels need beds filled. Protea Hotels sales, marketing and revenue director, Danny Bryer, says:

“While the current global economy has seen a natural tightening of all purse strings from corporate to consumer, this does not in our opinion necessitate the need for a war based on discounting price deals. “BAR has no restrictions and is priced competitively, therefore ensuring that To page 2


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