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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
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.comTRANQUILITY
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.comContents
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 | 3ED’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.zaNEWS
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.zaEthiopian 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 | 7COMMENT
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.zaCOMMENT
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 | 9ADVERTORIAL
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.zaestablished 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 | 11FEATURE – 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.zaTECHNOLOGY
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
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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
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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
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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
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excellence. The division also encompassing all transportation monitor the event. C
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Visit businesstravellerafrica.co.za MARCH2019 | 17FEATURE – 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.zaFEATURE – 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.zaanalysed 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:
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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
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Visit businesstravellerafrica.co.za www.securedrive.co.za MARCH2019 | 21Deniel
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.
Don’t fall for online reviews. Whenever you take a Sho’t Left,
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.zaT
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 | 25FEATURE – 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.za19_085
© 2019 Preferred Hotels & Resorts
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26 SUNSET VILL A HOTEL CARLTON KENZI TOWER HOTEL LYALL HOTEL AND SPA
CAPE TOWN, WESTERN CAPE, SOUTH AFRICA ANTANANARIVO, MADAGASCAR CASABLANCA, MOROCCO SOUTH YARRA, MELBOURNE, AUSTRALIAFEATURE – 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-
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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.zaYou can also read