AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa

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AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
CAR RENTAL
At a tipping point?

PREMIUM TRAVEL
A new kind of luxury

AVIS
Re-inventing the rental experience
ISSUE 137: MARCH 2019                www.businesstravellerafrica.co.za
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
SUN2887
IT’S
HIGH TIME
BUSINESS
MEETS LEISURE

Situated in the heart of Menlyn Maine,
The Maslow Time Square is Sun International’s
238-room specialist business hotel. Not only a
destination for professionals, but a portal for
travellers. Boasting 17 floors that offer everything
from business to leisure with tempting eateries,
                                                       THE MASLOW TIME SQUARE
a relaxing business lounge and 13 bespoke
conference rooms.                                      209 Aramist Avenue, Pretoria,
                                                       Gauteng, South Africa
For the perfect balance of business and pleasure,      Tel: 0860 846 377 / 0860 TIMESQ
be our guest.                                          Central Reservations: +27 11 780 7800
                                                       timesquare.reservations@suninternational.com
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
SeeSeychellesSA   SeeSeychellesSA   seychellestourismsa
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
TRANQUILITY
                                                  IN THE HEART
                                                   OF SANDTON

                                                  Set among the trees on the banks of the
                                                    Sand River, you will find peace and
                                                tranquillity unmatched in Jo’burg’s north.

                                                       Conveniently located to the
                                                Rivonia CBD and the major arterials, Sand
                                                 River Guest House offers you something
                                                  distinct: be it the 4 Star luxury rooms,
                                                  geared for self catering, or simply our
                                                unique, relaxing river and garden setting.

                         SAND RIVER
               T R E E
                         SAND RIVER
                             G U E S T

                         H O U S E
                                         &
                                             H O U S E

                                   C O N F E R E N C E     V E N U E
                             G U E S T  H O U S E
                                      ★ ★ &★ ★
               T R E E   H O U S E   C O N F E R E N C E   V E N U E

                                     ★ ★ ★ ★

It’s hard to believe you’re in Jo’burg
  T: +27 (0) 11 234 1666 / M: +27 (0) 71 324 7857 / www.sandriverguesthouse.com
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
Contents

                                                                                     12                                         40

                                34                                                           35
              Avis
              Avis – one of the world’s big car rental
              brands – is represented in Southern
              Africa by the Avis Budget Group, which
              has built a reputation as an innovative
              business      travel   industry    player,
              constantly looking for ways to streamline

                                                                                                                               24
              the rental process and provide cost-
              efficient corporate travel transportation,
              whilst remaining at the cutting-edge of
              technological advancement.

        FEATURES                                            REGULARS

12 Car Rental
          This remains an industry under pressure,
                                                           04 Message from the Team 34 Tried and Tested
                                                               What’s the editor ranting about now?          Hotel Check
          with very small margins and not much                                                               • Crowne Plaza Heathrow T4
          wiggle room. So, only the forward-
          thinking brands will survive, as the race        06 News
                                                               Airline, hotel and other travel news
                                                                                                             Flight Check
                                                                                                             • Delta Air Lines
          is on to provide the best tech and stave
          off the threat of disruptors muscling their          from Africa and beyond
                                                                                                         36 Q & A Interviews
                                                           08 W Hospitality Column
          way into the car rental space.
                                                                                                             • Mark Jakins – Premier Hotels
                                                                                                             • Darryl Erasmus – TGCSA

24 Premium Travel
          The notion of what constitutes ‘premium’
                                                               Managing Director Trevor Ward gives
                                                               us his take on the West African hotel
                                                               industry                                  38 People on the Move
          or ‘luxury’ travel has changed, as a new                                                           The movers and shakers –
          breed of traveller is forcing suppliers to
                                                           09 ASATA Column                                   what they’re up to now

                                                                                                         40 Bite with the Editor
          re-look their offerings and come up with
          solutions that meet the needs of a more              The latest from Chief Executive Officer
          personalised and authentic experience.               Otto de Vries
                                                                                                             Louis van Zyl – CWT South Africa

Visit businesstravellerafrica.co.za                                                                                                 MARCH2019 | 3
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
ED’S LETTER

                I
                    f you’re an African traveller who frequently travels
                    abroad and who values on-time performance, with        PUBLISHER
                                                                           Richard Lendrum
                    regards the airlines you fly, then this might be for
                you.
                   Research undertaken by UK travel insurance              EDITOR
                company, Get Going, has revealed the best and worst        Dylan Rogers
                airlines when it comes to being reliable.                  dylan@thefuture.co.za
                   For the study in question, 50 airlines were studied
                and five key factors were taken into account from          CONTRIBUTORS
                the month of November 2018, including: percentage          Kate Kennedy, Tom Otley, Jenni Reid
                of flights delayed, average delay waiting time, the
                percentage of flights cancelled, safety ranking and
                                                                           JOURNALIST
                customer rating, with Get Going cross-referencing          Kate Kennedy
                data from airlineratings.com, flightstats.com,
                flightaware.com, and caa.co.uk.
                   Japan Airlines, who have 126 domestic and 54            DESIGN AND LAYOUT
                international routes, came out overall on top, with        Nadette Voogd
                just 10.54% of flights being delayed and only 1.05%
                of flights cancelled across November.                      SUBSCRIPTIONS AND PRODUCTION
                   Dutch-based KLM Cityhopper was actually the             Mabel Ramafoko
                airline with the least amount of delayed flights, with     mabel@thefuture.co.za
                only 9.6% of flights being delayed compared to Japan
                Airlines’ 10.54%. However, KLM Cityhopper had a
                                                                           SOUTH AFRICAN OFFICE
                slightly higher number of cancellations, with 1.13%        Postal Address:
                of flights being cancelled and an average wait time        PO Box 1746, Saxonwold, 2132
                of 33 minutes.                                             Physical Address:
                   IndiGo is the most popular low-budget airline in        6 Rodwiella Rd, Edenberg
                India and they claimed third place in the top 10, with     Telephone: +27 11 327 6107
                14.7% of flights being delayed and an impressive
                0.07% of flights being cancelled.                          NIGERIAN OFFICE
                   Renowned airlines, Emirates and Qatar Airways,          3rd Floor, EuniBrown House195,
                also made the top 10, in positions six and seven,          Ikorodu Road, Palmgrove,Lagos, Nigeria
                respectively. Nearly 85% of Emirates’ flights arrived      Tel: +234 1 740 3236
                                                                           Mobile: +234 803 963 0155
                without delay, scoring a perfect 10 out of 10 for
                safety. Rivals Qatar Airways remained slightly
                behind with nearly 84% of their flights running on         PUBLISHER – NORTH & WEST AFRICA
                time.                                                      Tope Ogbeni-Awe
                   At the other end of the results, American low-cost      tope.ogbeni-awe@topcommng.com
                carrier Frontier Airlines came out as the least reliable
                from the 50 global airlines studied, with 30.64%           EDITORIAL ASSISTANT
                of flights delayed and an average delay time of 65         Mohammed Abdullahi
                minutes.
                   American Airlines took second place for the least
                reliable airline, with 18.07% of flights being delayed
                and passengers waiting around 61 minutes on
                average.
                   Spanish-based airline Vueling are known for their       Business Traveller Africa is published under licence from Perry
                affordable prices, but with 23.74% of flights being        Publications Limited.
                delayed and the average waiting time 55 minutes – it       Warwick House, 25 Buckingham Palace Road, London, SW1W 0PP.
                                                                           Tel: +44 20 7821 2740
                was the third least reliable airline.                      www.businesstraveller.com
                   Australian-owned Jetstar delayed nearly 28% of its
                flights and cancelled 2.13% of them. Air Canada also
                featured in the bottom 10, with 25.57% of its flights
                being delayed and passengers having to wait up to
                46 minutes.
                   Worth taking note of, if you’re busy planning your
                next overseas trip.

                                                                                  Follow us on:

                Dylan Rogers
                Editor
                dylan@thefuture.co.za

4 | MARCH2019                                                                                                       Visit businesstravellerafrica.co.za
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
NEWS

                                                                             Marriott Continues
                                                                             Africa Expansion
                                                                             Marriott International has signed three new deals
                                                                             in Morocco, Ghana and Liberia. Anticipated to open
                                                                             in 2024, the St. Regis Marrakech Resort in Morocco
                                                                             will be a part of the Assoufid Golf Resort and include
                                                                             80 rooms and villas. The offering will include six
                                                                             dining options, a spa, pool, fitness centre, and the
                                                                             18-hole Assoufid Golf Club course. Residence Inn
                                                                             by Marriott Accra Kotoka Airport is projected to
                                                                             open in 2023. The 12-storey hotel will consist of 160
                                                                             suites equipped with fully-functional kitchens. Other
                                                                             facilities will include three food and beverage outlets,
                                                                             including a rooftop bar, a health and leisure club and
                                                                             a boardroom. Marriott expects to make its debut in
                                                                             Liberia with the Four Points by Sheraton Monrovia
                                                                             with 111 rooms and four food and beverage outlets,

  Onomo Acquires Waterfront                                                  including a rooftop bar and lounge, and speciality
                                                                             restaurant, in 2020.

  Property
  African hotel group ONOMO Hotels has added Signature Lux
  Waterfront by ONOMO to its portfolio. The recently-launched
  hotel brings a new competitor to the Cape Town CBD and popular
  Waterfront area in South Africa’s Mother City. The hotel offers 89
  contemporary-style rooms that preserve the Waterfront heritage
  building and a restaurant, Vivaldi, that serves breakfast, lunch
  and dinner. Signature LUX has placed a strong focus on servicing
  the ‘tech-lovers’ and offers self-service kiosks that allow guests to
  check in and out on the hotel’s app, a mobile key function, and easy
  reservation, laundry, room service, and instant messaging with the
  front desk, and wi-fi dialling services.

                                                                              Virgin Atlantic Helps
                                                                              Those With Hidden
                                                                              Disabilities
                                                                              Virgin Atlantic has launched its Hidden
  Airlink Enhances Nelspruit                                                  Disabilities scheme across its network. Offered to
                                                                              passengers at no extra cost, the scheme ensures
  Route                                                                       the airline provides extra assistance to those
  Airlink has introduced enhancements to its Nelspruit Kruger                 who may need it, without them having to ask. A
  Mpumalanga International Airport-Cape Town service. Early                   specially-designed symbol, which can be worn
  morning flights depart Nelspruit KMIA at 07h00 and arrive in                as a pin badge or discretely tucked away in your
  Cape Town at 09h25. Late afternoon flights depart Cape Town                 passport as a bookmark, alerts extensively trained
  International at 16h30 and arrive at Nelspruit KMIA at 18h45.               Virgin Atlantic staff that extra assistance may be
  These flights operate Monday to Friday. On Saturdays a new early            needed by an individual, or their family, whilst
  morning departure leaves Nelspruit KMIA at 07h40 and arrives in             travelling. Prior to the flight taking place, the
  Cape Town at 10h05. The airline has also introduced business class          Virgin Atlantic Special Assistance team can also
  from Cape Town to Hoedspruit and Nelspruit.                                 work with the individual to ensure that their
                                                                              journey is as accommodating as possible. The team
                                                                              can arrange for travellers to be escorted through
Rennies Joins BCD                                                             the airport, have access to priority boarding and
                                                                              reserve seating where necessary. Onboard, the
Rennies Travel has parted ways with HRG and joined the BCD Travel             team can also ensure that in-flight entertainment
Global Network. Headquartered in South Africa, Rennies specializes            is provided for blind passengers, with some crew
in corporate travel, incentive and group travel, leisure travel and travel    also trained in sign language. (Sign language-
technologies. BCD will continue to operate its current South African          trained crew need to be pre-booked.)
joint venture, BCD Travel South Africa, separately.

6 | MARCH2019                                                                                     For more news, visit businesstravellerafrica.co.za
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
Ethiopian Unveils New Airport Terminal
  Ethiopian Airlines recently unveiled a new state-of-the-art passenger terminal at Bole International Airport in Addis Ababa.
  The existing airport was initially designed to accommodate six million passengers annually; the upgraded terminal will
  accommodate 22 million passengers a year and will have upgraded runways and navigations systems. There is a new check-in
  hall with an elevated motorway; more international gates; check-in and immigration counters; duty-free shops; restaurants;
  auto-walks; escalators; a new 373-room hotel; panoramic lifts; and hi-tech airport systems such as automated bag drop
  solutions, e-gates, self-check-in kiosks, and baggage handling and tilting tray sorter systems.

  SAA and Comair Reach
  Settlement
  The legal dispute between South African Airways and Comair
  over commission payments has been settled. The matter concerned
  commissions (override incentive agreements) paid to various
  travel agents between April 2000 and May 2001, and between June
  2001 and March 2005, which were found to be prohibited and in
  contravention of the Competition Act, following which Comair sued
  SAA for damages. The Supreme Court of Appeals ruled on the matter
  on 15 February, and the two parties were able to reach a settlement.
  In a press statement, SAA stated that its current airline leadership at
  board and executive management level was committed to closing all
  legacy issues and starting on a clean slate.
                                                                             Travelport and BCD
                                                                             Extend Partnership
                                                                             Travelport has renewed its long-standing partnership
                                                                             with BCD Travel. With this new agreement, Travelport
                                                                             Digital will continue to collaborate on BCD Travel’s
                                                                             digital traveller engagement solution, TripSource,
                                                                             making it the preferred way to manage all aspects of
                                                                             business travel. TripSource allows travellers to shop
                                                                             and book air, hotel and car services and to evolve
                                                                             the next generation of self-service corporate travel
                                                                             experience. TripSource uses real-time messaging
                                                                             capabilities to provide travel updates such as flight
                                                                             delays, gate changes, risk alerts and policy reminders,
                                                                             as well as company-specific information that helps
                                                                             travellers have a seamless, well-informed experience.

                                                                              RwandAir and
                                                                              Amadeus Extend
Corporate Traveller                                                           Partnership
Launches YOUR.CT                                                              RwandAir has extended its partnership with
                                                                              global distribution service provider Amadeus.
Corporate Traveller, a division of the Flight Centre Travel Group, has        Amadeus will now roll out solutions across
launched YOUR.CT, a new technology platform in the South African              passenger systems, revenue management, loyalty
market. YOUR.CT, designed to meet the needs of SME corporates, will           management, payments, data and analytics
give travel arrangers, travellers and managers a single access point, via     to support RwandAir’s plans of expanding its
their customised dashboard, to information and functionalities that are       network and fleet. The benefits of using the
relevant to their business travel needs. This includes pre-trip approval,     Amadeus Passenger System (Altéa) also extend to
booking options, profile management, traveller tracking, travel alerts and    Amadeus’ global travel seller network.
reports. The platform can be accessed via PC, tablet or mobile device.

For more news, visit businesstravellerafrica.co.za                                                                      MARCH2019 | 7
AVIS Re-inventing the rental experience - CAR RENTAL - Business Traveller Africa
COMMENT

                    An Eye on
                    West Africa
                    H
                            ad things gone to plan, I would have been           travelling home to vote, and the hospitality industry
                            writing this after the presidential election        will have another lean weekend.
Trevor Ward                 in Nigeria, and talking about the potential
MD: W Hospitality
                    impact of the result on the hospitality industry.           Nigerians want to vote, they want to participate,
Group
                    No fewer than 73 candidates were in the running,            but they also perceive a real possibility that there
                    although I did notice that some of the smaller              could be post-election violence, based on historical
                    parties dumped their candidate at the last minute           precedent. If Nigerians perceive that threat, then
                    to endorse a better ‘runner’. The two front runners         foreigners perceive it to a much greater degree,
                    were President Buhari, the incumbent since 2015,            and that severely affects the hotel sector. I know
                    and Atiku Abubakar, a former Vice-President of              of several expatriates (and Nigerians) who left the
                    Nigeria. And the winner was… chaos and confusion!           country to avoid being here during the election,
                                                                                and several other people who delayed their travel
                    To paraphrase Robbie Burns, the best-laid plans             to Lagos until after the election – not just after the
                    of mice and men go oft awry. A few hours before             date of the election, but for a few days afterwards, to
                    voting was to start on the morning of 16 February,          avoid any “after effects”. That means the hotels had
                    a date that was set a year ago, the election authority      low demand, exacerbated now from cancellations as
                    announced (in the middle of the night) that it wasn’t       people change their plans to avoid yet another date.
                    ready, having sworn blind for weeks before that
                    there would be no problems. What happened?                  Some fascinating research undertaken by Lagos-
                                                                                based FDC shows that elections can positively
                    Well, one could say that Nigeria happened. INEC,            impact GDP, inflation and exchange rates when they
                    the election commission, said that due to the bad           are credible and transparent, and especially when
                    weather, the poor roads and other logistical and            power changes without rancour to the opposition.
                    operational challenges (including sabotage at three         Unsurprisingly, they found that if an election goes
                    election centres earlier in the week), essential            badly, the impact is negative, especially on the
                    election materials couldn’t be distributed as               nation’s currency and, depending on government
                    planned, and the election was postponed by a week.          policy, unemployment.

                    The election was delayed to 23 February (as too was         There are no fewer than 23 countries in Africa with
                    the election for state governors in early March, from       elections this year, and of those 12 are for president.
                    2 to 9), but the hospitality industry is counting the       Here in West Africa, the big ones are Nigeria and
                    cost of what happened.                                      Senegal, with Mauritania and Guinea Bissau also in
                                                                                election mode.
                    Lagos almost literally shut down on 15 February so
                    that people could travel to their home towns to vote.       Whether the election goes well or badly, it is a fact
                    The ports, schools, shops, banks, virtually every           that foreign investors stay away for several months
                    business closed either early or completely for the          after the vote, to assess the effect on the polity
                    day, to enable their staff to travel in daylight, safely.   and on the economy. So the negative impact on the
                                                                                hotel industry continues, especially for those hotels
                    Friday night is a big night in Lagos, with bars and         that rely on foreign visitors (rather than domestic
                    restaurants doing brisk business, but instead they          travellers). 2018 was a great year for the Lagos hotel
                    were dead. And on Saturday, polling day, there              industry, with demand up 8% on the previous year
                    was to have been a curfew all day, restricting all          (when the economy grew just 2%), continuing the
                    movements, so again the town was dead, and                  upward trend since the nadir of 2016. But it looks
                    that continued into Sunday morning. The formal              like Q1 2019 will be a bit of a wash-out, with four
                    hospitality industry lost millions. But spare a             weekends ‘cancelled’, and investor confidence taking
                    thought also for the informal sector, the street            a double hit, first from nervousness regarding the
                    vendors who had stocked up on perishable food to            elections, and now because of the delays.
                    sell to the lines of voters. The Lagos Chamber of
                    Commerce put the loss to the city’s economy due             Democracy has its dividends, but also its costs.
                    to the postponement of the election at $1.5 billion.        We look to the long-term, and hope for a return to
                    Whatever the actual figure, it’s a lot. But we should       growth. C
                    be used to it – the elections were delayed not only
                    this year, but also in 2015 and 2011.                       www.w-hospitalitygroup.com

                    So now there will be another dead weekend, when
                    we should have had to live with just the one. Staff
                    will have to take more time off, spend more money

8 | MARCH2019                                                                                                  Visit businesstravellerafrica.co.za
COMMENT

                           Be cyber-
                                                                            RM RENTA
                                                                          TE

                                                                                   L
                                                                      G

                                                                                       •
                                                                 • LON
                                                                                  IRST
                           savvy                                  W   ORL
                                                                          DF

E
        ver had a delayed flight? Exhausted, frustrated and
        in need of escape, it’s easy to whip out your phone,
        laptop or other mobile device and use the free wi-fi
available at the airport or coffee shop.
  And in that moment, you put your, and your company’s,
data, at risk.
  But, you’re not the only one.
Research by international travel company Carlson Wagonlit
Travel last year, showed that only 35% of business travellers
felt confident about not sharing their company’s data while
travelling.
  Marriott International suffered a massive data breach
in 2018 – 500 million hotel guests’ information was
compromised.
  One of the ways you can avoid this is by ensuring your
company employs the services of an ASATA-accredited
travel company, guaranteeing your business has a travel risk
programme in place that protects sensitive information.
  Besides that, here are some other tips you can use to
protect your data while travelling:

1. Avoid free wi-fi
Although free wi-fi networks are more readily available,
they also make it easier for hackers to reach your personal
information. Ensure you’ve disabled all your mobile devices
from auto-connect modes so that it cannot connect to a
network without your knowledge while travelling. And insist
that the inflight wi-fi your TMC books is safe and password
protected.

2. Update your devices
Spend time the day before you travel to update any operating
software on all your mobile devices while you’re connected to
a secure wi-fi network at work or home. Do this especially for
apps that store personal information, like your Outlook and
Uber.

3. Be password savvy
Don’t use the same passwords for social media accounts and
for applications and devices that store sensitive information.
Social media sites are particularly vulnerable to cyberthieves
wanting to access personal information via ‘fun’ apps.

4. Disable Bluetooth connectivity
Make sure you disable Bluetooth connectivity you may have
used to share documents in a meeting. Same applies for the
Bluetooth you could have used to make phone calls on the
road in a rental car, and remember to delete all data that may
have been transferred to the car’s system before you return
it. C

Otto de Vries
ASATA CEO

Visit businesstravellerafrica.co.za                                                        MARCH2019 | 9
ADVERTORIAL

AVIS RENT A CAR
GETTING SOUTH AFRICA’S
MOBILITY RIGHT                                                                as predicted, they must find ever
                                                                              more efficient and sustainable
Urbanisation is accelerating on a massive scale worldwide and Africa’s        ways to move people and goods.
population growth will see our cities among the largest in the world             The Johannesburg-Pretoria-
within a decade. Innovative mobility solutions are crucial, writes Rainer     Ekurhuleni megacity may reach 16
Gottschick, Chief Executive of Avis Rent a Car Southern Africa.               million inhabitants by 2030. The
                                                                              old ways of single-driver, single-
                                                                              owner mobility must be relooked,

O
         xford Economics predicts      economy. It is predicted that by       if cities growing at this pace are
         that by 2035, Africa will     2030, the industries, services and     to continue moving people and
         be home to three of the 20    innovation of our planet’s 750         goods effectively and functioning
most populous cities in the world.     largest cities will generate $80       as coherent economies.
At the same time, the GDP growth       trillion, or 61% of total world GDP.      Many experts, like those at
of African cities will be the second      Cities will become larger, busier   PWC, predict that the market for
fastest on earth, after China.         and more densely populated.            shared, on-demand vehicles will
  Urbanisation will increasingly       If they are to survive, let alone      be worth $1.4 trillion by 2030.
power the growth of the world’s        drive the economy of the planet           In South Africa, with our

10 | MARCH2019                                                                           Visit businesstravellerafrica.co.za
established culture of mass transit    Integrated transit – Zipcar
using multiple mobility solutions,     pioneered car sharing and
on-demand ride-hailing services        today is the world’s leading car
were swiftly adopted when they         sharing network, present in over
appeared in 2013. They are now         500 cities and towns around
part of a suite of options including   the world, with one million
car rental, car ownership, metro       members. Across its network,
rail, minibus taxis, BRT systems       Zipcar has partnerships with
and commuter rail.                     transit agencies in cities across
   At Avis, we are committed to        the globe, helping to facilitate
playing our role in this urban         first/last mile connectivity and
mobility matrix. As car ownership      enable more efficient “whole trips”
becomes less of a necessity,           that combine various modes of
services like car rental, long-term    transport.
car hire, “car-where-you-are”
and chauffeur-driven services are      On-street parking – Zipcar
drawing increasing interest.           offers affordable, safe and clean
                                                                                                     Rainer Gottschick
   Internationally, the Avis           transportation in places that don’t         CEO: Avis Rent a Car Southern Africa
Budget Group has been actively         have many transport options
anticipating and driving the           and where there is little public      rental experience, digitising the
change in mobility. From the           parking. With Zipcar, one needn’t     business and developing new
acquisition of Zipcar in 2013, to      worry about parking – you simply      models, advancing into areas like
the groundbreaking Avis mobile         drop the car off at its home          mobility-as-a-service, connected
app, the launch of the Mobility        location.                             cars, autonomous vehicles, smart
Lab in Kansas City, the addition of                                          cities and more.
thousands of connected cars to its     Ride hailing – To help expand            This fascinating process will
global fleet, and partnerships with    the benefits of ride hailing,         help to redefine urban living in
Waymo, Toyota and Continental,         internationally the Avis Budget       the decades to come.
the Avis Budget Group has been         Group has partnered with on-
unafraid to take risks to move         demand transportation company         ABOUT AVIS
its core business - as well as the     Lyft to make their fleet available    Founded in 1946 by Warren E
industry – forward.                    on a monthly basis to people who      Avis, who opened America’s first
   Today, the mobility landscape       want to drive, but would prefer       car rental counter at Willow Run
is shifting beneath our feet, as       not to own their cars.                Airport, Avis Rent a Car is today
consumers increasingly look to                                               South Africa’s leading car rental
on-demand services to get from         Multi-modal transit – Combining       company with over 117 outlets
point A to point B, including          car solutions with rail travel is a   throughout Southern Africa. Since
bikes, scooters, vans, cars they       logical solution. In the US, Avis     1962 its renowned brand promise
drive, cars driven by others,          has partnered with Brightline,        of “We try Harder” has permeated
and someday, cars that drive           a privately-owned passenger           through the business and has
themselves.                            rail service, to offer passengers     been the driving force behind the
   The next stage of mobility will     convenient access to Avis and         brand being at the forefront of
undoubtedly be autonomous, self-       Zipcar vehicles, which can be         technolog y, introducing innovative
driving vehicles, which have been      booked on the Brightline app.         product offerings, being the first
rigorously tested for more than a                                            car rental company to achieve
decade by companies like Waymo.        Data intelligence – Organisations     carbon-neutral accreditation,
As of 2018, Waymo had tested its       that partner with Avis can            pioneering environmental
system in 25 cities across the US,     have access to anonymised             initiatives, exceptional customer
logging more than eight million        connected car data and expert         service, and from care for
kilometres on public roads and         analysis through an Amazon            employees to community
more than eight billion kilometres     Web Services collaboration. This      upliftment. Avis offers a total
via simulation.                        could encourage future vehicle        transport solution for business
   Avis has a vested interest in       innovation for connected travellers   or recreation purposes consisting
ensuring efficient, equitable and      and inform smart city planning        of: Avis Rent a Car, Avis Point 2
safe transportation in our cities      using road-condition and traffic-     Point, Avis Chauffeur Drive, Avis
and communities. Internationally,      volume data.                          Luxury Cars, Avis Van Rental,
the Avis Budget Group is working         Mobility is becoming                Avis Truck Rental and Avis Car
on solutions with various partners     commoditised, and individuals         Sales. C
across multiple parts of the           and organisations are increasingly
mobility ecosystem. As they            expecting to be able to customise     CONTACT
become viable, we look forward         transport solutions to their needs.   Visit the website for more
to their eventual adoption in this     To ensure mobility works for          information www.avis.co.za or
country.                               everyone, Avis is reinventing the     @AvisSouthAfrica

Visit businesstravellerafrica.co.za                                                                    MARCH2019 | 11
FEATURE – CAR RENTAL

Moving
with the
times
 The car rental industry is having to re-invent itself,
 as consumers change the way they see transport and
 traditional models are thrown out of the window. Kate
 Kennedy looks at this changing environment.

12 | MARCH2019                                            Visit businesstravellerafrica.co.za
Visit businesstravellerafrica.co.za   MARCH2019 | 13
FEATURE – CAR RENTAL

C
             ars remain a vital         corporate car rental market has                client,” he says.
             component of land          been in decline for the past three                Woodford was founded in 1991
             travel for much of         years.                                         with a small fleet of just two
             Africa. Whether you           “The lack of growth in the                  vehicles in Durban. In the last 18
rent a vehicle, drive yourself          South African economy is the                   years, the company has grown into
around in a private car, catch a        most pressing issue facing our                 a multi-locational car hire provider
lift with a friend, flag down a taxi    industry,” he says. “In the past               with over 1,500 vehicles.
or book an Uber, the humble and         number of years all key customer                  “The South African car
hardworking automobile is the           segments – corporate, government,              rental market is headed toward
vehicle that gets you from A to B.      local leisure and insurance                    a stage where volumes are
   And car rental is at the forefront   replacement – have seen volume                 increasing rapidly, leading to
of this movement.                       contracting. The only segment                  an oversupply with cost-cutting
   According to The Car Rental          that has shown growth has been                 as the differentiating measure,”
Industry in South Africa 2018 report    international visitors, although in            says Suleman. “We believe that
by Research and Markets, “the           the last year this growth has been             service is the true differentiator,
South African car rental industry       significantly lower.”                          with factors such as expediency
grew revenue by 3.6% in 2017,              Every car rental player has                 and waiting time critical to the
reaching an estimated total of          been affected by the economy,                  experience. “
R5.2bn ($370m). The industry            but according to Essa Ebrahim
continued to be driven by business      Suleman, Director at Woodford
car rental, which accounted for         Car Hire, there’s a broader issue at
53% of the value of all sales.”         play in the South African market –
   That’s not to say that the car       that of a lack of choice.              “ The South African car rental
rental industry doesn’t have its
challenges.
                                           “Traditionally, a few agencies
                                        have dominated the market with
                                                                               industry grew revenue by 3.6%
   According to Lance Smith,            a ‘one-size-fits-all’ approach         in 2017, reaching an estimated
Executive Director: Sales at Avis       that doesn't allow for flexibility
Budget Southern Africa, the             or agility when it comes to the          total of R5.2bn ($370m). ”

14 | MARCH2019                                                                                     Visit businesstravellerafrica.co.za
TECHNOLOGY
                                                                                               Those factors cited by Suleman
                                                                                               are greatly affected by technolog y,
                                                                                               which is now playing a huge role
                                                                                               in the service offering of all car
                                                                                               rental brands, helping streamline
                                                                                               the rental process and making it
                                                                                               as easy as possible for customers
                                                                                               to book, pay for, collect and drop
                                                                                               off a hired car.
                                                                                                 These brands are mindful of
                                                                                               the fact that they need this area
                                                                                               of the business to be as seamless
                                                                                               as possible, in order for them to
                                                                                               remain relevant and competitive,
                                                                                               in the face of new technologies
                                                                                               and offerings creeping into the car
                                                                                               rental space.
                                                                                                 Avis, a stalwart of the car rental
                                                                                               industry, has developed its global
                                                                                               preferred service which enables
                                                                                               customers to sign one master
                                                                                               rental agreement and then simply
                                                                                               present their drivers licence on
                                                                                               picking up their vehicle. This
                                                                                               service is being enhanced with
                                                                                               mobile apps, key lockers and
                                                                                               connected vehicles to enable its
                                                                                               customers to bypass the queues
                                                                                               and to go straight to their rental
                                                                                               vehicle.
                                                                                                 The company has also
                                                                                               introduced Avis SafeDrive, a
                                                                                               smartphone app that allows users
                                                                                               to access their trip data, see their
                                                                                               driving scores and get suggestions
                                                                                               on how to improve these. The app
                                                                                               will also use the customer’s phone
                                                                                               and the Avis SafeDrive Sensor to
                                                                                               alert the company of any severe
                                                                                               impacts.
                                                                                                 “It turns your phone into
                                                                                               a panic button for in-vehicle
                                                                                               emergencies and gives you access
  SECURE DRIVE                                   Mandatory training for all staff includes
                                                 ‘street wise’ driver training, hijack         to the 24-hour emergency centre,”
  Whilst not a traditional car hire company                                                    says Smith.
  nor point-to-point service, Secure             prevention, first aid, advanced driving,
                                                 basic motor mechanics, and counter              In the United States, Avis
  Drive is offering business travellers on
                                                 surveillance. Each client is assigned         has launched a voice-powered
  the African continent an alternative,
                                                 a dedicated journey facilitator who is        car reservation capability with
  particularly if their focus is on security
                                                 actively involved from the first request      Amazon Alexa and announced
  and peace of mind.
                                                 until after the trip has been completed.      Google Home integration with
     It offers cost-effective, secure travel
  with chauffeur-driven vehicles, and            Customers have access to the ArcWatch         artificial intelligence capabilities.
  currently has dedicated offices in Cape        App, a geolocation app that allows            With new features on its Avis
  Town, Johannesburg, Lagos and Abuja            customers to check in along the way, as       mobile app – a larger variety of
  (Nigeria), and Nairobi (Kenya). Through        well as a distress function which pin-        vehicles, fuel and parking options,
  long-term, strategic partnerships it also      drops their location.                         courtesy bus tracking, rental
  offers Secure Drive services in over 40           Secure Drive’s service offering includes   recipients, and a ‘find my car’
  countries around the world, not only           armed transportation in some locations        feature – customers can manage
  Africa.                                        and crime or risk-related updates.            their entire rental from their
     Secure Drive’s drivers are specially           Its fleet includes a variety of vehicles   smartphone, choose the exact car
  trained with a skill set that is not offered   from entry level sedans to Mercedes
                                                                                               they want, change or upgrade
  by any other company in the market.            Benz Vianos, various SUVs and luxury
                                                                                               their vehicle while at or near the
                                                 sedans.
                                                                                               lot with a simple swipe, view their

Visit businesstravellerafrica.co.za                                                                                    MARCH2019 | 15
ADVERTORIAL

WOODFORD
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Woodford was founded in 1991 with the aim of providing a low-cost alternative in vehicle hire that
places value-for-money and service excellence first. From a small fleet of just two vehicles in Durban,
the company has grown into a multi-locational car hire provider with over 1,500 vehicles offered over
three divisions.

“W
               e service a wide and   of passenger sales and paperless
               ever-growing client    check-in systems.
               base spread across       Corporate clients receive a
the private, public and corporate     visit from a Woodford Business
sector,” says Mohammed Owais          Development Manager to
Suleman, Woodford’s CEO. “Our         understand their business
ability to adapt across sectors       requirements and once the credit
is our key differentiator. Our        forms have been vetted, Woodford
product offering evolves with our     compiles a comprehensive, value-
client’s needs, always with the       inclusive offer. The benefits of this
aim of improving the total client     programme include guaranteed
experience.”                          rates, 30 days to pay, upgrades
   Woodford offer cars, bakkies       for senior managers, guaranteed
and trucks for private and            availability during peak seasons,
commercial hire and a logistics       dedicated account manager and no
division that manages major local     queuing.
and international accounts.             Woodford’s comprehensive
   With nearly 30 years of            chauffeur service makes use of a
experience, this family-owned         professional, multi-lingual drivers
company has diversified and           who are available around the
strengthened its offering by          clock to transport you in a range
growing strong relationships with     of vehicles – from entry level
the tourism industry, government      to luxury SU Vs. All chauffeur
divisions and the Airports            drivers complete an advanced
Company of South Africa.              driver training course to ensure        experience in event planning and
   Woodford’s passenger hire, with    passenger safety. Drivers are           execution across various industries,
a wide range of vehicles spanning     equipped with GPS tracking and          working with the public and
multiple categories, has a national   are vastly knowledgeable about          private sector relating to local and
footprint at all major airports       the areas in which they operate.        international clientele. Vehicle
and centres, and has built its          Event planners can make               convoys and specific vehicle
offering around competitive rates,    use of Woodford’s complete              colours are both available, with
an expansive fleet, and service       project management solution             senior members on the ground to
excellence. The division also         encompassing all transportation         monitor the event. C
presents innovative technolog y,      requirements for large-scale
including its user-friendly           conferences and high-profile event.     CONTACT
website that facilitates the bulk     Woodford has over eight years’          woodford.co.za

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Visit businesstravellerafrica.co.za                                                          MARCH2019 | 17
FEATURE – CAR RENTAL

  TELEMATICS                                                                “ The South African market’s
                                                                              move toward embracing
  Telematics, the long-distance transmission of computerized
  information, presents a huge opportunity to the car rental industry.
                                                                             these 'in-car' technologies
     The Internet of Things has provided companies with the ability to        is relatively curtailed by
  leverage new technology for better fleet management and allows
  them to closely monitor vehicle performance and safety.                     bandwidth issues and the
     Connected cars maximise operational efficiency and increase              lack of infrastructure. ”
  customer satisfaction. Idle vehicles are easy to track and monitoring
  fuel levels becomes transparent, as telematics can tell companies       rental agreement, get real-time updates, and
  and customers how much fuel was in the tank at the time of              more.
  collection and drop off – a win-win situation.                             Secure Drive, a security chauffeur provider
     So, greater operational efficiency and happier customers? It’s no    and part of the international Arcfyre Group, has
  wonder that companies remain keen on testing new technology.            developed the ArcWatch app, which allows clients
     In February 2018, Avis Budget Group announced that it would          and staff to activate the ‘Help Me’ and ‘Check-In’
  convert 50,000 vehicles into connected cars by installing telematics.   services, which immediately notify Secure Drive’s
     “The integration of telematics will accelerate our ability to meet
                                                                          24/7 Security Research & Communicate Centre
  our goal of a fully connected fleet by 2020,” says Arthur Orduña,
                                                                          of your location, as well as the support required.
  Executive Vice-President and Chief Innovation Officer at Avis
                                                                          Given that much of the company’s clientele
  Budget Group. “Connected cars offer us unparalleled potential
                                                                          consists of people who require lower levels of
  to dramatically improve the customer experience while also
  streamlining operations and reducing costs, which is why we’re          security during their travels, these services are
  taking aggressive steps to fully connect our fleet as quickly as        important to ensure high levels of safety.
  possible.”                                                                 According to Essa Ebrahim Suleman, Woodford
  Premium models within Woodford Car Hire’s fleet feature some            Car Hire has made significant investments into
  telematic technology, including the ability to communicate with         its management, support, and technolog y systems
  clients via onboard systems, driver aids and collision warnings.        to ensure greater efficiency in the entire car
  “However, the South African market’s move toward embracing these        rental process.
  'in-car' technologies is relatively curtailed by bandwidth issues and      “From creating a smooth marketing and
  the lack of infrastructure,” says Essa Ebrahim Suleman, Director at     communication flow to ensuring coherent user
  Woodford.                                                               design and experience on the website and online
                                                                          booking system, to paperless pick-up and drop-
  (Source: 2018 State of the Car Rental Industry report by Perficient)    off at branches, Woodford is at the cutting-edge
                                                                          of technology that supports a seamless customer

18 | MARCH2019                                                                                      Visit businesstravellerafrica.co.za
FEATURE – CAR RENTAL

                                                                                      experience,” he says. “On the back-
                                                                                      end, Woodford has a fully-fledged
                                                                                      control room, tracking facilities,
                                                                                      and management systems that
                                                                                      ensure that everything runs as it
                                                                                      should.”
                                                                                        Hertz, another longstanding
                                                                                      industry player, is also using
                                                                                      technolog y to go completely
                                                                                      paperless, with all documentation
                                                                                      moving online. Both Hertz and
                                                                                      Firefly have a Mobile Assist app
                                                                                      (as a nominally priced, add-on
                                                                                      option to the rental agreement)
                                                                                      with services that include
                                                                                      roadside, medical and legal
                                                                                      assistance. And the Vehicle Events
                                                                                      app is streamlining the process
                                                                                      involved in damage to rental
                                                                                      vehicles.

                                                                                      RIDE HAILING
                                                                                      The sharing economy has waded
                                                                                      into the car rental space – with
                                                                                      regards providing an alternative to
                                                                                      existing and prospective car rental
                                                                                      customers – and technological
                                                                                      advancement has resulted in
                                                                                      the emergence of services such
                                                                                      as Uber and Lyft, which are the
                                                                                      prominent brands in the space.
                                                                                        The Car Rental Industry in
                                                                                      South Africa 2018 report found
                                                                                      that, “although the growth of
                                                                                      ridesharing and car-sharing has
                                                                                      begun to affect the international
                                                                                      car rental market, local car rental
                                                                                      companies believe that South
                                                                                      Africa has not followed this
                                                                                      trend. However, major players in
                                                                                      the industry have acknowledged
                                                                                      that with technolog y playing an
                                                                                      increased role in travellers’ lives,
                                                                                      the car rental industry has had to
  SELF-DRIVING CARS                                                                   improve its services and respond
  They might not be viable right now, but self-driving cars are the way of the        to the impact that Uber and other
  future, and car rental companies are getting in early, in order to stay well-       technologies are having on the
  positioned to meet this new reality.                                                market and traveller behaviour.”
     Just two examples are Avis Budget Group’s partnership with Alphabet’s              “The sharing economy is no
  (Google) Waymo and Hertz’s partnership with Apple.                                  longer a concept, but a reality with
     These companies have identified an important role within this developing         rapidly accelerating adoption,”
  market that needs to be filled, one that they are uniquely qualified to fill.       says Martin Lydall, Chief
     “Autonomous vehicles will still need to be managed – fleeted, de-fleeted,        Commercial Officer of Europcar
  maintained and moved – and car rental companies are poised to do that, as they      in South Africa. “Young people do
  already run the largest fleets in [the] US and even the world,” says Chris Brown,   not view ownership in the same
  Executive Editor at Auto Rental News.                                               way as previous generations did,
     “In the car rental industry, what we do have are great fleet management          and for very good reason. This is
  capabilities that are very difficult to replicate… nobody has that kind of chain    unlikely to change.”
  from life to grave of managing a car,” Tom Kennedy, Hertz’s Chief Financial           And some of the stats out there
  Officer, said during a talk at a Friends of Finance luncheon at The University of   are quite revealing.
  Tulsa.                                                                                A report published by
                                                                                      Certify, a provider of expense
  (Source: 2018 State of the Car Rental Industry report by Perficient)
                                                                                      management software – which

20 | MARCH2019                                                                                    Visit businesstravellerafrica.co.za
analysed US business travel and               if one reads between the lines, is                 has been taking steps to ensure
 expense spending trends for                   only to the point-to-point services                that it is fully-equipped to ride
 2017 - found that “ride hailing               offered by those in the car rental                 whatever change takes place to
 accounted for 68% of the overall              space. That would be a ‘like-for-                  the industry, and in 2013 acquired
 transaction volume in the ground              like’ comparison.                                  leading car-sharing company
 transportation category last year                The Woodford view is slightly                   Zipcar to broaden its offering.
 (2017), led by Uber and rival Lyft.”          different.
 It went on to say that the car                   “We believe that the technolog y                CONCLUSION
 rental market accounted for 25% of            revolutions associated with such                   There is no doubt that the face
 transactions, while taxis accounted           initiatives ensure that the industry               of car rental is changing, but the
 for 7%.                                       is not only kept on its toes, but is               major players seem to be moving
    That being said, some of the               also forced to adapt and improve                   with that change, as models are
 players in the local car rental               its offering,” says Suleman.                       being re-looked, technolog y is
 market believe the likes of Uber                 Lance Smith at Avis has a                       being embraced, and the entire
 are only affecting one area of their          similar view.                                      process of hiring a vehicle is being
 business, and, as it stands, are not             “The shared economy in                          streamlined.
 a threat.                                     transportation has created new                       But, despite the protestations
    “Traditional car rental is                 customers in people that would                     of some of the major players,
 an average length of rental of                never have used the service                        the likes of Uber have changed
 approximately four to five days,              before,” he says. “This has been                   the way consumers view
 depending on the segment of                   good for the car rental market as it               transportation, and whilst the
 customer,” says Rebone Motsatsi,              gives consumers more of a reason                   sharing economy might not be
 Executive Commercial at Avis,                 not to own a vehicle and to rather                 currently having a big impact
 suggesting that one shouldn’t                 rent, lease, rideshare, hail a taxi or             on the car rental industry, that
 compare the Ubers of this world               call for an Uber when they have a                  could change, as technolog y
 with traditional car rental. Instead,         need for mobility.”                                plays a bigger and bigger role in
 the threat, if there is one at all,              That being said, Avis, globally,                consumers’ lives. C

                                                                       Secure Drive:
WHETHER YOU’RE                                                         • Offers a pre-booked, tailor-made service for
                                                                         individuals and groups
TRAVELLING FOR BUSINESS                                                • Provides secure passenger point-to-point
OR LEISURE, YOUR SAFETY                                                  and full day services
                                                                       • Utilises a variety of vehicles to meet all client needs
SHOULD BE A TOP PRIORITY                                               • Operates in South Africa and in more than 40
                                                                         countries in Africa, the Middle East and Asia

                                       Tel: +27 (0)11 794 9502 • Email info@securedrive.co.za
 Visit businesstravellerafrica.co.za                    www.securedrive.co.za                                            MARCH2019 | 21
Deniel
        2 months ago
                   We stayed a week ago with our family of 5. The
        rooms were clean, spacious and the bathrooms and showers
        are new.

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always book graded accommodation.
FEATURE – PREMIUM TRAVEL

  Premium
  travel
  re-defined
     Millennials are changing the way modern day
     luxury travel is viewed and supplied, with
     ‘personalisation’, ‘authenticity’, and ‘digitally-
     savvy’ the buzzwords.

24 | MARCH2019                                            Visit businesstravellerafrica.co.za
T
                                              here’s a different face to
                                              luxury or ‘premium’ travel.
                                                Gone are the old
                                      perceptions of what ‘luxury’
                                      constitutes, as a new type of
                                      traveller has emerged, demanding
                                      that his or her needs and
                                      expectations of what a premium
                                      travel experience entails, are met.
                                         This ‘old and new luxury’ taps
                                      into the generational differences
                                      between the travellers of today
                                      and the travellers of the past.
                                      It’s something picked up on by
                                      Anthony Berklich, founder of
                                      Inspired Citizen. He was speaking
                                      at WTM Africa in Cape Town in
                                      2017, looking specifically at the
                                      millennial traveller.
                                         “Parents of millennials perceive
                                      luxury in a somewhat old-school
                                      way. Butlers in tuxedos, stuffy
                                      hotel furnishings, being greeted by
                                      ‘sir’ and ‘madam’,” said Berklich.
                                         But, according to him, millennial
                                      travellers go in search of a more
                                      ‘authentic’ experience – something
                                      that offers them a bit more
                                      meaning.
                                         “The narrative, the story behind
                                      it, is what they are buying into,”
                                      he said.
                                         According to Berklich,
                                      millennials “seek unique and
                                      special, exclusive experiences and
                                      items that make them different
                                      and create a separation between
                                      them and the masses and, most
                                      importantly, allow them to express
                                      themselves. They are a little
                                      narcissistic and will spend money
                                      to feel special.”
                                         No surprise, then, to see some
                                      suppliers tailoring their offerings to
                                      meet these millennial demands.
                                         That’s also because the numbers
                                      back it up.
                                         According to ITB-IPK’s World
                                      Travel Monitor 2018 survey, half
                                      of all luxury trips are made by
                                      millennials. Indicatively, outbound
                                      trips by millennials (aged 18-38)
                                      grew by 15% in 2017 compared to
                                      the previous year, accounting for
                                      a market share of over 40% of all
                                      global outbound trips.
                                         At the same time, due to better
                                      jobs and increasing income, the
                                      survey results indicated that
                                      millennials account for half of all
                                      international luxury trips – with
                                      expenditure over 750 euros per
                                      night.

Visit businesstravellerafrica.co.za                            MARCH2019 | 25
FEATURE – PREMIUM TRAVEL

   “Today, millennials are the          as a major luxury consumer.
most influential consumer in the          “In few sectors have millennials    “ Parents of millennials perceive
premium travel space, having            had more impact than in travel        luxury in a somewhat old-school
become both brand critics and           and tourism. Their expectations
ambassadors,” says John Watson,         and behaviour are significantly        way. Butlers in tuxedos, stuffy
Regional Director of Africa for
Preferred Hotels & Resorts. “They
                                        different from their parents’ and
                                        older generations’. Their whole
                                                                               hotel furnishings, being greeted
have played a significant role in       travel journey has changed, from           by ‘sir’ and ‘madam’. ”
technological changes through           the initial inspiration phase to
their use of mobile devices to          the actual travel and holiday
book and share travel experiences,      experience,” said Mancau. “The
which includes how the travel           importance of social media                       to play in the global travel space
industry has shifted to connect         as influencer on the choice of                   going forward, but there are other
with them where they want to be         holiday for example, the quest for               players in this market and other
found.”                                 authentic holiday experiences and                trends that remain constant,
   As a result, the luxury segment      off-beaten track adventures, the                 regardless of generation.
is undergoing major changes due         demand for personalized services,                  “We have entered a new era of
to the structural shifts in demand      their awareness of security                      luxury travel,” says the executive
patterns by consumers. They are         threats….changes are happening                   summary in Amadeus’s ‘Shaping
a completely different type of          along the entire value chain.”                   the Future of Luxury Travel - Future
consumer with distinguishing              But, let’s not get too side-                   Traveller Tribes 2030’ report.
features, such as desire for            tracked or too fixated on                        “As newly affluent citizens pop
experience, tech-sav v y, and high      millennials. There are other                     up in different regions of the
morals.                                 luxury travellers out there, and                 world, and the travel industry
   In their report, ‘Millennials. The   to ignore them would be short-                   expands to meet their demands,
generation reshaping travel and         sighted.                                         how can travel brands cater for
shopping habits’, Roland Berger           Further to that, Berklich’s                    more luxury customers while
and Global Blue published a             points regarding the millennial                  somehow maintaining a sense of
joint interview, where Sebastien        generation is not a suggestion that              exclusivity?”
Mancau and Laurent Delmas               suppliers in the premium travel                    The report goes on to say that
discussed major trends and shifts       space need to remain focused                     “as emergent middle classes seek
in luxury travel that were caused       on this generation. Sure, this                   the material aspect of luxury
by the emergence of millennials         generation will have a big role                  travel, more mature markets

26 | MARCH2019                                                                                       Visit businesstravellerafrica.co.za
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CAPE TOWN, WESTERN CAPE, SOUTH AFRICA        ANTANANARIVO, MADAGASCAR                CASABLANCA, MOROCCO           SOUTH YARRA, MELBOURNE, AUSTRALIA
FEATURE – PREMIUM TRAVEL

are craving a new, evolved kind      and get the perspective of the                  Town. “This market expects their
of luxury. This is why offering      suppliers, starting with those in               hotel to anticipate their needs,
luxury customers a relevant,         the hotel space?                                thereby eliminating the need
personal and exclusive experience      “Premium travellers want                      for asking for assistance. From
will become even more crucial        comfort and personalized service,               larger requirements, such as
than it is today – it will be a      privacy, spacious rooms, amenities              award-winning restaurants and
differentiating factor between old   in the room, an office away from                bars where one can entertain
and new luxury.”                     the office, and fast and reliable               clients and colleagues and
                                     internet connectivity,” says                    spas to unwind during a busy
WHAT DO THEY WANT?                   Neelma Maru, Director of Sales &                itinerary, to smaller details such
The Amadeus report point             Marketing at Mövenpick Hotel &                  as international plug points
suggests a link back to the          Residences Nairobi in Kenya.                    in all room, safes that can
personalisation and authenticity       “The premium guest is                         accommodate large laptops, and a
that the millennial generation       well-travelled and knows and                    complimentary shoeshine service.”
craves, but can this be applied to   appreciates exceptional service                    But all of this doesn’t come
all market segments?                 and product,” says Mark Wernich,                cheap, and there can be no
  Perhaps, let’s flip it around      General Manager of the Taj Cape                 denying that there’s been a
                                                                                     general tightening of belts, post-
                                                                                     2008 global economic downturn.
                                                                                     What has this meant for the
                                                                                     luxury space?
                                                                                        “Although travellers today
                                                                                     are feeling the economic pinch
                                                                                     and are looking at ways to cut
                                                                                     back on their spending, when
                                                                                     it comes to luxury items they
                                                                                     are still choosing quality and
                                                                                     are prepared to pay more for
                                                                                     premium and affordable luxury
                                                                                     products,” says Zoleka Skweyiya,
                                                                                     Sun International Group Manager
                                                                                     for Communications & Customer
                                                                                     Insights. “Regardless of whether
                                                                                     someone is visiting us for a meal,
                                                                                     to spend a night in our hotels, or
                                                                                     to be entertained at the casino or
                                                                                     a show, they want to physically
                                                                                     connect with other people. A
                                                                                     digital platform is unable to offer
                                                                                     this social element that people
                                                                Singapore Airlines   will always need, which is why we
                                                                                     believe the hospitality industry
                                                                                     will always be relevant.”
                                                                                        Sure, it will remain relevant, but
                                                                                     let’s get back to a focus on spend,
                                                                                     because, if it’s too expensive,
                                                                                     no amount of personalisation or
                                                                                     authenticity is going to change
                                                                                     the situation. Or is it a situation
                                                                                     of: regardless of the state of the
                                                                                     economy, those with the means
                                                                                     will always have the means, so
                                                                                     getting too fixated on a sluggish
                                                                                     economy is missing the point?
                                                                                        “While the industry was
                                                                                     in decline following the 2008
                                                                                     financial crisis, the hotel
                                                                                     development pipeline started
                                                                                     to recover and is now robust,
                                                                                     showing significant growth for
                                                                                     the premium travel sector,” says
                                                                                     Watson. “This year, we will
                                                          DAVINCI Hotel & Suites     welcome at least 23 brand new-

28 | MARCH2019                                                                                   Visit businesstravellerafrica.co.za
Experience the La Premiere suite on the
     Johannesburg Paris route from 01 April 2019.
  Operated with a Boeing 777-300 aircraft. Also equipped with a lie flat bed in
                           the Business class cabin.

 www.airfrance.co.za
Visit businesstravellerafrica.co.za                                     MARCH2019 | 29
FEATURE – PREMIUM TRAVEL

                                                                                     T he Royal Livingstone by Anantara

build luxury hotels (to the Preferred   cruise around the Arctic on
Hotels & Resorts member portfolio),
illustrating the confidence that
                                        a famous yacht. For another,
                                        it could be the reassurance of
                                                                               “ While the industry was in
hotel asset owners and developers       having their dietary requirements       decline following the 2008
have in the spending behaviours         automatically catered for
of luxury travel consumers and          throughout their entire holiday
                                                                                 financial crisis, the hotel
the demand for premium hotel            and a bespoke designer wardrobe       development pipeline started to
products in both popular and            waiting for them in their hotel
emerging markets.”                      room – without them having to          recover and is now robust. ”
   Yes, but are we talking both         ask. For some, it could be having
leisure and business travel             their favourite Michelin-starred
markets here?                           chef flown in to prepare a meal
   “The corporate travel segment        in a Bedouin tent in the middle of              products and communications
did go through a tough phase            the Sahara. Curating something                  more meaningful than ever
in the years following the              that appeals to them on a specific,             before.”
economic downturn (in 2008),            personal level that goes above a                   Today, travel executives realize,
with shrinking travel budgets           traveller’s ‘norms’ is key to the               building more relevant and
and severe cuts in five-star hotel      next chapter of luxury travel.”                 personalized customer experiences
spending. However, purchasing              All of which means that                      is critical, because it helps
trends in recent years indicate an      suppliers have to work harder                   differentiate their brands in an
almost complete recovery, which         to earn the business of luxury                  increasingly competitive market.
signals a new cycle,” says Watson.      travellers who place a premium on                  “It’s becoming harder and
                                        personalisation.                                harder to stand out,” said Loni
PERSONALISATION                            There’s no doubt that                        Stark, Senior Director of Strateg y
The bottom line is that what            ‘personalisation’ has become                    and Product Marketing at Adobe,
constitutes ‘luxury’ is a very          one of the buzzwords in travel                  in an interview with CMO.com.
personal thing, with no one             customer experience. That’s                     “Many brands are setting the
rule applying to each and every         down to the expectations of                     bar higher by engaging with
traveller across the board.             more demanding travellers and                   customers on a personal level with
  “Luxury travel is subjective,”        the volume of data available to                 content and messaging that is
says the Amadeus report.                suppliers, who, according to Skift,             personalized, relevant, and more
“For one traveller, it could be         “have all the information and                   likely to garner engagement.”
a private multimillion-dollar           tools they need to make their                      Despite this, many travel

30 | MARCH2019                                                                                      Visit businesstravellerafrica.co.za
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