Super- girl - UNIGLOBE Travel

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Super- girl - UNIGLOBE Travel

 Fikile Nkala is on a quest to streamline
 Super Group’s travel commodity
   Ebola outbreak – tighten up your duty of care
   Premium economy: is it worth it?
   Low-cost carriers enter long-haul market
   How to liven up your year-end: budget-friendly ways
Super- girl - UNIGLOBE Travel
Super- girl - UNIGLOBE Travel
A new chapter

     T can be a cliché to say that                      during industry events and new           COVER
     all good things come to                            members including those from
     an end but in this case it is                      new regions slowly joined the            This month we profile Super Group, a global logistics
     true in the sense that this                        ranks and stood up to have their         and mobility group. Looking after the group’s travellers is
is my last issue of Travel Buyer,                       voices heard too.                        Fikile Nkala from the Group Procurement division.
as I move on to work on new                                It really has been an honour to       Cover photograph by Shannon Van Zyl.
projects. I have been with the                          have been part of the industry’s
publication for many years yet                          development for so long and so           News                                                                    2
it seems like yesterday that we                         it is with a great sense of pride        • MasterCard launches digital payment first in SA
were excitedly setting the                              that I leave you, our readers,
                                                                                                 • Ebola – SA issues travel advisory
wheels in motion for the launch                         advertisers, friends and industry
                                                                                                 • Save the dates: GBTA and ABTA
of a new specialist business                            colleagues in the capable hands
travel publication aimed at                             of Natasha Tippel who will
the corporate travel manager,                           continue as editor, supported            News                                                                    4
a newly and loosely defined                             by Debbie Badham who has
                                                                                                 • Duty of care during the Ebola outbreak
role within corporations at                             been promoted to assistant
the time.                                               editor. They will take Travel Buyer
   We have grown with the                               forward on the next phase of its         Q&A                                                                     6
sector, sharing its successes                           journey with you.                        • The Super Group story
and hardships, watching with                               There is never enough space
interest while trying to facilitate                     for the words I want to write, so I
the empowerment of travel                               will keep it simple.                     Meet                                                                    8
buyers within our industry. I                              Thank you, thank you, thank           • Plan greener meetings and events
have loved hearing your stories                         you.                                     • The good, the bad and the unusual
and it has been a privilege to                             Everything of the very best,
                                                                                                 • Budget-friendly ways to liven up your year-end
share them with readers as our                          always.
                                                                                                 • Sweetening the deal
community grew. I have watched
with fascination as debates                             KIM COCHRANE
became more sophisticated                               (               On the radar - LCCs                                                   13
                                                                                                 Low-cost carriers enter long-haul market
Publisher’s note
KIM Cochrane has been associated with Travel Buyer since its first                               On the radar - Premium classes                                        16
edition 13 years ago, when it was launched as Business Travel Now. As                            Premium economy: is it worth it?
consulting editor, she has guided and grown the publication, with an
unswerving focus on South African corporate travel buyers, making
Travel Buyer a monthly ‘must read’ for those responsible for managing                            On the radar - Rail travel                                            20
significant corporate travel expenditure.                                                        Full steam ahead
  Kim’s vision, expertise and exceptional work ethic will be missed.
We thank her for her commitment, for setting the bar high for a
professional publication and wish her everything of the best in her                              Deal detective                                                        24
future endeavours. – David Marsh                                                                 Travelinfo’s latest top travel deals

PUBLISHER Kate Nathan GROUP PUBLISHER David Marsh EDITOR Natasha Tippel
                                                                                                        Brought to you by Now Media, Travel Buyer + Meet is a
CONSULTING EDITOR Kim Cochrane Editorial ASSISTANT Debbie Badham Editorial
CONTRIBUTORS Linda van der Pol, Dorine Reinstein, Michelle Colman, Liesl Venter DESIGN                  professional travel publication aimed at South African
& LAYOUT Tanya Bosch PHOTOGRAPHER Shannon Van Zyl SALES                            travel procurement decision-makers in travel-buying
ADVERTISING CO-ORDINATOR Courtney Canham SUBSCRIPTIONS                              companies. This publication aims to reflect an unbiased
ANNUAL SUBSCRIPTION RSA R295.00 (Free to target readership only), African R680.00,                      perspective of the corporate travel industry offering
International R890.00 PRINTED BY Juka Printing (Pty) Ltd PUBLISHED BY Travel & Trade                    insight and tools encouraging readers to manage their
Publishing (Pty) Ltd, Now Media Centre, 32 Fricker Rd, Illovo Boulevard, Illovo, Johannesburg,          travel spend better. Travel Buyer is the media partner of
PO Box 55251, Northlands, 2116, South Africa. Tel: +27 11 327 4062, Fax: +27 11 327 4094,               ABTA, ACTE and the GBTA
e-mail:, web:


                                                                                                                                     September 2014 • TRAVEL BUYER        1
Super- girl - UNIGLOBE Travel

MasterCard launches
digital payment first in SA

           ASTERCARD has               payments without the repeated
           launched its digital        hassle of entering these details
           wallet services –           each time.
           MasterPass – in South          SAA is among the first
Africa, the first market in Africa     merchants to accept MasterPass
and the Middle East to receive         as a payment method at

                                                                                                                                                      Pic: natasha tippel
the technology. Launched in            checkout.
2013, MasterPass is available in          For retailers, MasterPass
nine other countries – the US, UK,     provides a more secure, faster
Canada, Australia, New Zealand,        and easier way to check out
Italy, Singapore, China and            customers.                           Celebrating the launch of MasterPass are (from left): Mark Hearne
Poland.                                   “Check-out happens with           (MasterCard South Africa), Kim Thipe (SAA) and Andrew Wilmot
   Digital wallets accessible          just a few clicks or taps            (Standard Bank).
through the MasterPass network         whether at home, in a taxi,
allow consumers to store all their     at work or at a supermarket,
MasterCard or other branded            so merchants can look              MasterCard South Africa’s head       bank to offer a digital wallet
credit, debit or cheque card           forward to fewer customers         of business development. As          powered by MasterPass
information, and shipping and          abandoning their shopping carts,   MasterPass evolves, it will also     via the free Standard Bank
billing address details securely       which, according to research,      enable in-app and in-store           MasterPass app, which anyone
in one place. This gives them          affects over 67% of online         purchases.                           can use even non-Standard
the ability to make secure online      purchases,” says Mark Hearne,        Standard Bank is the first local   Bank cardholders.

    Ebola – SA issues travel advisory, airlines cancel flights                                                         No more

           he South African            affected areas in West Africa.     Africa but had stepped up             temporary passports

           Department of Health        Most recently, Kenya Airways       measures to protect
           has issued a travel         suspended commercial flights       its passengers, crew and                     he Department of Home
           advisory against all        to Liberia and Sierra Leone.       ground staff against the                     Affairs will no longer issue
    but essential travel to Liberia,   The airline will continue          Ebola virus.                                 temporary passports from
    Guinea or Sierra Leone. At         operating all its scheduled           Staff will be on the lookout              September 1.
    the time of going to print         flights to Nigeria and Ghana,      for passengers who have                 A circular from the DHA states
    the Department released            however, Kenya Airways’            specific and visible symptoms        that SA citizens have been refused
    a statement saying: “South         ceo, Titus Naikuni, said           associated with the virus.           entry into a number of countries
    Africans are not restricted from   he reserved the right to           Passenger interviews and             when travelling on temporary
    travelling to these countries,     cancel flights to any other        tests will follow, conducted         passports. “Temporary passports
    however all returning travellers   destination should the             by the health authorities. In        have been abused for corruption
    from these countries will be       situation warrant it.              the event that there is any          purposes, which puts South Africa
    subjected to rigorous screening       Earlier in August, Asky,        doubt regarding the medical          at risk of its travel documents
    and medical assessments            Arik Air, and British Airways      condition of any suspected           being unreliable.”
    before being allowed entry into    suspended flights to Liberia       passenger, SAA may deny the             Only an Emergency Travel
    the country.”                      and Sierra Leone. Emirates         passenger boarding.                  Certificate (ETC) will be issued to
       Meanwhile, various airlines     suspended flights to Guinea.       g For more on the Ebola story,
                                                                                                               an applicant under circumstances
    have cancelled flights to Ebola-      SAA continued to fly to West    see page 4.                          of emergency travel purposes.


2    September 2014 • TRAVEL BUYER
Super- girl - UNIGLOBE Travel
Kenya rethinks visas
                                                                                         for SA travellers

   Save these dates: GBTA and                                                   HE Kenyan High
                                                                                Commission has
                                                                                                             are negotiating, hence a pause
                                                                                                             as we await feedback from the
   ABTA conferences                                                             suspended visa               negotiations.”

                                                                                requirements for South          In June it was announced
          OR the first time, the     inaugural ABTA Africa Business      African nationals – for now.        that SA passport holders
          Global Business Travel     Travel Conference.                     The Deputy High                  would, from September 1,
          Association (GBTA)            The conference takes place       Commissioner for Kenya              need to acquire a visa before
          Southern Africa annual     from November 2-4, 2014 at          in South Africa, Helen              travelling to Kenya; in a tit-for-
   conference will be held in the    the Sheraton Pretoria Hotel.        Gichuhi, told Travel Buyer the      tat move as a reaction to the
   greater Sandton area.             Over 200 delegates from             suspension of the visas could       new immigration laws in South
     The 2014 conference will be     across Africa and the globe are     just be a temporary reprieve.       Africa. The decision has been
   held at the Bryanston Country     expected to attend.                 “The Kenyan government and          heavily criticised by tourism
   Club, Johannesburg, from             The theme is Education-          the South African government        and travel stakeholders.
   October 15-16.                    Strategy-Power. The event
     The venue had been chosen       will have a corporate travel
   to enable travel buyers to        education and networking
   minimise time away from the       focus where delegates will        Australia launches online visa applications

   office, while maximising the      experience a host of highly
   benefits from attending the       pertinent sessions pertaining            OUTH African passport          three months, although this can
   event, the GBTA SA said.          to managing business travel              holders can now apply          be extended on request.
     The conference will have        in Africa and will finally have          online for Australian            Access the online portal at
   the theme ‘Designing Business     the chance to meet and                   Visitor Visas.        under ‘Online
   Travel’.                          interact with industry peers        Visitor Visas apply to holidays,    Services’. The service will be
     Meanwhile, the African          across our continent and the      family visits and business visits     available 24 hours a day, seven
   Business Travel Association       globe, says ABTA founder          that do not involve work in           days a week. Applicants will also
   has opened registration for its   Monique Swart.                    Australia.                            be able to check the status of
                                                                         They are generally valid for        their application. g


                                                                                                            September 2014 • TRAVEL BUYER         3
Super- girl - UNIGLOBE Travel

                                                                                                           The importance of an
                                                                                                           effective and seamless
                                                                                                          duty of care programme

Duty of care during the                                                                                   has once again become
                                                                                                           apparent as the Ebola
                                                                                                              virus continues to

 Ebola outbreak                                                                                              spread throughout
                                                                                                           Western Africa, writes
                                                                                                              Dorine Reinstein.

        HE World Health                 He says we can expect to              Uriah Jansen, md of Oojah
        Organisation and IATA         see increasing numbers of            Travel Protection, explains it
        have assured corporate        corporations banning or limiting     is only possible to evacuate
        travellers around the         non-essential travel for the         travellers within legally
world that business travel to         duration of the outbreak and         permitted parameters and
affected areas can continue           beyond. “Medical evacuation          the traveller needs to receive
uninterrupted, as the risk of         would be considered vital for        a ‘fit to fly’ from a local
contracting the disease while         expats, and corporations should      doctor. We cannot force an
travelling is extremely low.          have medical ‘extraction’ plans in   airline to allow commercial           What your travellers
   Yet despite these assurances,      place for any infected person.”      evacuation and that we are              should know
numerous multinational                                                     limited by each government’s
companies with employees                                                   policy on whether they will           1. Access to medical facilities
based in the region have started         People just don’t                 allow someone to leave/enter             Travellers should ensure
restricting travel to affected
areas, while others have
                                       want to travel but this             their country.”
                                                                              Dr Katie Geary, medical
                                                                                                                    they have access to
                                                                                                                    medical facilities when
requested evacuations. Nestle,         needs to be correlated              director at International
                                                                                                                    travelling. The option to
for example, has restricted all
corporate travel to Guinea,
                                         with the practical                SOS, adds there is almost
                                                                           no reliable access to medical
                                                                                                                    come home to be treated
                                                                                                                    might not be possible.
Liberia, and Sierra Leone unless it     realities of keeping               care available in countries
                                                                                                                 2. Avoid crowded areas
is an ‘absolute necessity’.                                                such as Liberia. “Many medical
   Chris Pouney, director of
                                          highly lucrative                 facilities have either closed
                                                                                                                    Travellers should avoid
business travel for UK-based           facilities functioning.             or are over capacity. They
                                                                                                                    crowded areas as well
                                                                                                                    as dense public transport
Severnside Consulting Ltd,                                                 are severely limited in their
says most companies have                                                   capability and do not have               options.
                                         Rachael Penaluna, business
travel bans in place to affected                                           stringent infection control.          3. Keep hands clean
                                      manager of Sure Maritime
countries. “Energy companies                                               Less-serious illnesses may               Travellers should wash
                                      Travel in Port Elizabeth, says
are scaling back hugely on the                                             become life threatening.”                hands frequently and wear
                                      most companies are struggling
numbers of foreign workers.                                                   WHO has issued                        gloves during preparation
                                      to ensure duty of care for their
People just don’t want to travel                                           comprehensive guidelines for             of food. They should also
                                      travellers. She says the Ebola
but this needs to be correlated                                            more effective exit screening at         avoid shaking hands with
                                      outbreak could last months
with the practical realities of       and companies with interests in      airports and border crossings.           people.
keeping highly lucrative facilities   those countries will have to send    “This means business travellers       4. Be aware of your own
functioning.”                         representatives at some point.       must be absolutely certain               health
   He says companies also need        She adds, however, that it is        they are fit and well to travel. If      Travellers should be aware
to consider the risk and fear         almost impossible for companies      they are displaying symptoms             of their own state of
of infection from travellers          to ensure travellers’ safety.        of any kind of fever, they may           health. If they already have
returning back from infected          “They can only advise on how         automatically be considered as a         flu or a cold, they may be
areas. “As discovered through         to avoid certain situations, food    possible case of Ebola subject to        running a temperature
the swine flu outbreak of 2009,       and to read the material that is     any quarantine procedures.”              and be stopped at the
despite the WHO advice saying         offered and become familiar with        There is no need for                  airport.
that it was fine, other workers       symptoms etc.,” she says.            companies to become swept up          5. Use a travel agent
were uncomfortable if their                                                in unnecessary mass hysteria,            Reputable contacts,
colleagues had just returned                                               says Monique Swart, founder              drivers, meeting hosts
from a holiday in Mexico and          Limited facilities                   of ABTA. “Many companies are             should be able to guide
came straight into the office.”                                            limiting ‘unnecessary’ travel            visitors and give them
   Jim Weighell, director of          Although travel insurance will       into affected regions, but for           local advice should they
operations in South Africa for        provide cover for corporate          the most part, business trips            be uncomfortable. Travel
GBTA, says at least one US-based      travellers for medical               of high importance are going             agents can give clients
company has already issued a          emergencies in affected areas        ahead as planned with informed           the correct information
travel ban notice for Guinea,         as long as the WHO and Foreign       companies understanding                  at source and help them
Liberia and Sierra Leone, along       Commonwealth Organisation            that the threat of travellers            establish reputable
with a travel restriction for         (FCO) don’t issue travel warnings,   contracting the disease is highly        contacts through
Nigeria, requiring travellers to      expatriation and medical care        unlikely and cannot be used to           embassies, hotels, etc.
clear the trip with senior execs.     could still be a problem.            impede business.”

4   September 2014 • TRAVEL BUYER
Super- girl - UNIGLOBE Travel
What you should know
Q: What is Ebola?                    Q: What are the                        Do not go to hospitals, as they    has never been tested in humans
                                                                                                                and is highly experimental.
                                                                             may be treating patients with
A: Ebola is a viral haemorrhagic     symptoms?                               Ebola.
fever (VHF). “Haemorrhagic”
means these diseases can involve
                                     A: Usually, the person suddenly        Do not handle animals, 		          Q: Previous outbreaks
                                     feels weak, with a fever, muscle/       even if they seem healthy.
bleeding.                            joint pain, headache and sore          Ensure all meat is cooked 		       A: The first known Ebola
                                     throat. Vomiting, diarrhoea, rash       well.                              outbreak occurred in the
Q: How is it spread?                 and abdominal pain follow in                                               Democratic Republic of Congo
                                                                                                                (formerly Zaire) in 1976.
Not through the air.
   There is no data on whether
                                     most cases. Some people may
                                     develop redness of eyes and
                                                                           Q: Treatment                         There have been at least ten
the virus can be spread to others    hiccups.                              A: There is no treatment or          outbreaks since then, all in
via sweat. People who have              Organ failure and bleeding         cure for Ebola. Sick people          African countries. Outbreaks
gotten Ebola from other people       (both internally and externally)      are given supportive therapy,        have occurred in Congo, the
have probably had exposure to        occur in some people. These lead      which are treatments that            Democratic Republic of Congo,
several body fluids from the sick    to death. About 50% to 90% of         help make them more                  Cote d’Ivoire, Gabon, South
person, in addition to sweat.        cases are fatal.                      comfortable but do not cure          Sudan, Uganda, and now Guinea,
   Ebola is not a food- nor a                                              their illness.                       Liberia and Sierra Leone.
water-borne illness.                 Q: How can I avoid
   Individuals who are not
                                     the virus?                            Q: Is there a cure?                  Q: Putting it in
symptomatic are not contagious.
In order for the virus to be          Stay away from sick people. Do      A: There is currently no             perspective
transmitted, an individual would       not touch their bodily fluids or    cure for Ebola virus. An             A: Since the Ebola outbreak
have to have direct contact with       objects contaminated with           experimental medication              began in February, around
an individual who is experiencing      their fluids.                       called ZMapp was administered        300 000 people have died from
symptoms.                             Pay strict attention to hygiene.    to two Ebola patients in the         malaria, while tuberculosis has
                                       Wash your hands often. 		           United States in early August.       likely claimed over 600 000
                                       Waterless alcohol-based hand        One of them seemed to                lives. g
Q: How is it diagnosed?                rub can be used if soap is not      dramatically improve after           Source: SOS International and Centers
A: Through blood tests.                available.                          receiving it. This medication        for Disease Control and Prevention

            GBTA Southern Africa Conference 2014 -
            Bryanston Country Club - October 15&16
                                   CONFERENCE THEME - DESIGNING BUSINESS TRAVEL
               THE Conference for Southern African Travel                 *Global perspective
               Buyers. Join the business travel community
               in Southern Africa at this event to network                *Excellent networking
               with your peers, learn from industry experts               *Build connections
               and explore new products and services on
               the exposition floor. This event is an ideal               *High-calibre learning
               opportunity to share best practices and bring
               innovation to your travel program or travel                *Exchange knowledge with GBTA
               offerings.                                                  members and travel professional

               Some topics will be:
                Managing your Suppliers                        Managing your people –
                                                                 moving away from Travel
                Managing your Programme                         Management and moving
                                                                 toward Traveller Management
                Managing Future Opportunities


                                                                                                               September 2014 • TRAVEL BUYER        5
Super- girl - UNIGLOBE Travel

Super travel
    Super Group is a global logistics and mobility
    group with a head office in Johannesburg
    as well as operations in Australia, New Zealand
    and the UK in addition to a strong footprint in
    Africa. And looking after logistics and mobility
    for the group’s travellers is Fikile Nkala from
    the Group Procurement division. She spoke
    with Kim Cochrane.

Q: I see you brought an              Q: How does the travel
  energy drink with you...             process work currently?

                                                                                                                                                         Pic: Shannon Van Zyl
A:  Yes! It is hectic      A: We use TravelLinck for
here at the moment. Super            domestic travel bookings, the
Group Procurement recently           approval process and to facilitate
merged with Super Group IT and       an automated process from
a new group procurement portal       pre-booking right through to            Born and bred – and still living – in the only place she calls home, in
or intranet will be launched to      expense management. For                 Daveyton on the East Rand, Fikile Nkala (left) loves spending her free
improve the travel system.           international and regional travel,      time socialising with family and friends. She is photographed here
                                     we partner with Claudia’s Travel.       with Super Group executive personal assistant and travel booker,
Q: What will this mean for           Three quotes are provided by            Angelique Stuart.
                                     the TMC: the lowest airfare for
  your travellers?                   a direct flight, the lowest airfare
A: Changes to internal               with one connection (under            such as telecommunications.
processes include a revised          four hours) and the lowest            The procurement division                Q: What are your
travel booking and approval          airfare for the day (maximum          expanded and travel became
process for both domestic and        two connections). Should an           more of a challenge, particularly
                                                                                                                     responsibilities now?
international reservations. Travel   airfare higher than the cheaper       as management had decided               A: The travel buck stops with
procurement will have its own        logical fare be chosen, additional    to move to an online booking            me. I manage and consolidate
intranet page where travellers       approval is required as per group     solution for domestic travel.           group travel across all divisions.
will be able to find information     travel policy and at the discretion   That was my first encounter with        Each division – there are about
as well as obtain a quote and an     of the divisional managing            corporate travel management.            20 divisions in the group – has
approval form.                       director.                             I was therefore the first to test       its own travel booker. All queries
   We don’t have too many               The travel-booking solution        TravelLinck and to benefit from         and issues are sent to me as I am
major challenges in travel           has changed the traditional way       the training offered. I then had to     the mediator between supplier
procurement. Things run              of managing corporate travel          recommend it to the business in         and travel booker if problems are
smoothly and I hope they will        and expense management                terms of how it would work and          encountered.
run even smoother following          in the organisation. I see            improve travel.                            I also manage the executive
this merger with IT. I now report    this technology as being a                                                    bookings for the Super Group
in to procurement and IT;            solution for the future of travel     Q: What did you like most               head office and I strive to keep
procurement management is            management in Super Group as                                                  senior staff members satisfied
now IT management. My boss           it provides real-time booking of
                                                                             about the system?                     at all times. I aim to ensure
is the chief information officer,    flights, accommodation (hotels        A: At the time, I only managed          excellent service delivery from
Adrian Lewis, who represents         and B&Bs) and car hire as well as     travel for the head office but          my service providers. This is what
travel at an executive level.        real-time reporting.                  now after six years, I oversee          gives me sleepless nights but
                                                                           travel for the whole group. All I       keeping these travellers happy
Q: There must be                     Q: When did you take on               know and understand I learned           is my greatest achievement as
                                                                           from managers who mentored              head office executive travel
  challenges that keep                 the travel portfolio?               me on travel booking, supplier          booker. It makes me whole in
  you on your toes?                  A: My previous working                negotiation and procurement,            my heart and helps me perform
A: Super Group is represented        experience never involved travel      among other topics.                     even better. It is a pleasure to
by a diverse range of cultural       as I worked in the safety and            What I like so much about            ensure that management’s travel
groups. My biggest challenge         security sector (SAPS) for seven      TravelLinck is that it was so           goes 110% well and then to be
has been to learn all their          years doing clerical work. There      easy to use and adapt to. With          complimented after a traveller
requirements and meet those          were no real challenges for me        the training I received – and           has had a fabulous travel
within the most cost-effective       there. I needed more and I found      working within the group’s              experience.
way. There are not different         it when I came to Super Group         existing travel policy, I could train      I reconcile all American Express
travel policies but there are        in 2008.                              bookers; we understood it well.         statements and supplier invoices
exceptions to the rule for our          I started off in procurement by    We subsequently have 100%               each month to ensure that Super
travel policy.                       managing smaller commodities          compliance on the system.               Group business units are billed

6   September 2014 • TRAVEL BUYER
Super- girl - UNIGLOBE Travel
correctly. It is my responsibility   providers who have a common
                                                                                     the travel commodity

to ensure prompt payment of          objective to achieve cost savings.
suppliers and to ensure that the        When I first took on travel, my              HE Super Group IT               The various divisions have
group American Express control       goal was to develop Group Travel                department is working        implemented workflows to
account is paid on time to avoid     into a world-class procurement                  closely with TravelLinck     suit business units. “Some
added cost. While meetings,          travel offering and the one-stop-               to design the most           send all requests to central
incentives, conferencing and         shop service provider for Super         streamlined solution for             procurement to process using
events (MICE) are not part of        Group travellers.                       the travel commodity,                TravelLinck, whilst others
my portfolio, I do reconcile the        To help myself develop I have        advises Marcelle Ross, who           manage all their own travel
MICE spend if it goes through our    acquired further academic skills        heads up TravelLinck’s               using the system.”
lodge card.                          and achieved a Purchasing               client-facing support and               Since travel arrangements
   I facilitate all the              Management Diploma at Varsity           business development.                can be unpredictable,
accommodation payments               College Sandton in 2013. I am              “We are considering various       TravelLinck’s capability to
inhouse directly instead of using    currently studying towards              direct integrations to either        readily allow changes to
bill-backs or the TMC to help,       obtaining a Procurement and             the new procurement portal or        existing bookings without
which saves on spend.                Supply Diploma with the Charted                                              having to start the entire
                                                                             the intranet to allow for ‘single
   Included in my travel             Institute of Purchasing and             sign-on’ capability.”                booking process from scratch
management responsibilities          Supply (CIPS) and I am a member            How it works presently at         has assisted Super Group with
is the reporting I analyse each      of the Institute. In this way, I have   Super Group, she says, is that       process efficiencies.
month for management:                gained in-depth knowledge of            bookers request travel via a            She says the billing process
reporting on ethical practice,       procurement ethics, principles,
irregularities of travel booking,                                            re-branded TravelLinck portal.       is tailored for Super Group
                                     procedures and processes and            “Real-time quotes are selected       to meet the requirement for
group high spenders,                 have a better understanding
misspending and on savings                                                   per service category and sent        monthly invoices to be sent
                                     of supplier management,
incurred by Group Procurement.                                               for approval via SMS or e-mail.      to 20 divisions. “No duplicate
                                     relationships, negotiating,
                                                                             The travel policy is embedded        billings are experienced
                                     contracting, business context as
                                                                             within the system and has            since we only charge per
Q: How controllable is               well as needs and sourcing.
                                                                             assisted in terms of meeting         service (flight) regardless
  travel spend within the                                                    savings goals.”                      of how many sectors or
  organisation?                      Q: I can understand the                    She adds that each division       changes etc. There is also
A: Spend is controllable and           energy drink...                       has access to its own real-time      the facility to capture/attach
we’ve seen savings of about          A: I start studying from 21h00          dashboard that depicts the           expense claims to each
20%-30% on travel spend since        when it is quiet and my husband         spend per day, percentage            travel order, enabling the
I joined and we moved on to          and three daughters have gone           of savings achieved, number          client to calculate the total
TravelLinck.                         to bed!                                 of travellers on the same            cost of travel and store the
   In terms of a break-down,                                                 flight etc.                          slips in a secure place.”
about 65% of our travellers          Q: Do you have any time left
travel to Cape Town, Durban
and Johannesburg, with about           to travel yourself?
20% going into regional African      A: I never dreamt that one day          Shifting gear to go global
countries. Of international spend,   I would be managing a travel
15% visit Australia, the UK and      programme. The first time I             TRAVELLINCK’S pioneer, Dr
Mauritius.                           travelled was last year when one        Rod Ross (pictured), recently
                                     of the hotels invited me to a site      spearheaded the recruitment
Q: What has been an                  inspection in Cape Town. It was         of a bigger outsourced
                                     my first time in an aircraft. I had
  eye-opener over the                the time of my life!
                                                                             development team to assist
                                                                             with rapidly accelerating
  years regarding travel?               And that is the excitement of        projects to deliver immediate
A: I’ve found it most interesting    doing travel. Day by day I get          client value.
to interact with travel service      more excited.                              “With this additional
                                                                             capacity, our clients can expect
                                                                             more efficient integration work,
 Remember...                                                                 better support for our current
                                                                             system as well as new ways to        head of product development,
 g   Adapt to change, new                right policies and 		               meet existing needs and plan         to focus on taking the
     travel products, innovation         procedures.                         for future needs in a global         current solution to the next
     and technology.                 g   Always treat internal and 		        context. The team is busy with       level. This strategic business
 g   Source reliable, responsible,       external stakeholders as            a host of new solutions, some        change has led to Tim Straw,
     capable and preferred 		            ‘King’, as these people             are client-specific and others       executive chairman, moving
     suppliers in the supply 		          make the travel world 		            are first to market and will         into management of daily
     market.                             go around. Without them 		          benefit the entire industry.”        operational responsibilities
 g   Have smart travel                   there is no travel.                    As a result, Dr Ross has          to allow Dr Ross to focus on
     procurement with the            g   Senior buy-in is essential.         shifted his focus from ceo to        technologies. g

                                                                                                                 September 2014 • TRAVEL BUYER      7
Super- girl - UNIGLOBE Travel
Each month in our dedicated meetings and events pages, Travel Buyer brings you
                        highlights from Meet, our publication for local corporate and government meetings
                        managers. Meet is available monthly at as a fully interactive
                        Digi-Mag, viewable on PCs, iPads and Android devices.

         Plan greener meetings and events
                                       The meetings and events industry is becoming more conscious
                                        of sustainability issues. Monique van der Zon, sustainability
                                      consultant, offers insights into how PCOs can start taking steps to
                                                      organise more sustainable events.

        GROWING number of             can reach a high level of              possible. This could include        If most of your delegates are
        professional conference       sustainability when first-time         selecting seasonal, local,          attending from out of town,
        organisers are conscious      measures are implemented. Yet          healthier menus, or even local      you may need to rethink the
        of concerns surrounding       most large events – whether            arts and crafts as gifts for        destination and venue for the
sustainability in the event           they are conferences, exhibitions,     delegates and guest speakers.       following year. Also look at
industry. Many are, however,          sporting events or music festivals     Choose your suppliers and           factors such as accessibility to the
unfamiliar with the practices         – can take up to two or three          service providers wisely and        event, access to public transport
they can easily implement             times to be considered a green         avoid imported items and            and possible car-sharing to
before, during and after a specific   event.                                 products.                           reduce emissions.
event to reduce its negative             The first time you attempt
effects. Events have enormous         a sustainable event you will           3. Waste: Minimise waste            7. Biodiversity: Try to
impacts on the environment but        probably come across some              wherever possible. If you can       avoid fresh-cut flowers
sustainability is not only about      issues. It is important to take        avoid fresh-cut flowers, buffet     wherever possible by looking
the environment; it involves          note and learn from them.              meals, printed collateral and       at indigenous potted plants
social issues as well.                Involving eco-event consultants        marketing materials, then do.       instead and always ensure that
                                      is always a good idea, as they                                             no threatened or endangered
Overcoming the                        will be able to assist you in the      4. Water: Venue selection is        species are on display or on
client barrier                        planning phase and also provide
                                                                             always important with regard
                                                                                                                 the menu. With regard to this,
                                                                                                                 take special note of the seafood
                                                                             to water conservation. Select
                                         Remember, it is important                                               available by visiting the Southern
Unfortunately, while organisers                                              venues that have water-saving
                                      to say that your event is ‘going                                           African Sustainable Seafood
are keen to host a sustainable                                               procedures, technologies and
                                      green’ or that you ‘aim to host                                            Initiative website. If there are
event, there seems to be an                                                  practices. If you are not sure
                                      a sustainable event’ instead of                                            any generators on site or display
enormous barrier as clients                                                  what to look for, ask them about
                                      declaring that an event is ‘green’                                         vehicles, they need to have
often see it as a pricey exercise.                                           their laundry procedures (for
                                      or ‘sustainable’. It is not possible                                       drip-trays underneath to avoid
Although some of the green                                                   tablecloths and linen) as well as
                                      to measure whether an event is                                             oil spills.
products that are available                                                  their water-saving technologies
are more expensive than their         sustainable until after the event,     such as dual-flush toilets, tap
non environmentally friendly          when all the data has been             aerators, low-flow showerheads,     8. Social: Looking after the
counterparts, we are starting         collected.                             and water-wise gardens and          local community before,
to see a shift in demand and                                                 irrigation. Always avoid bottled    during and after the event is
therefore a shift in prices.          Eight focus points for                 water wherever possible.            an important part of leaving a
                                                                                                                 positive legacy. You can do this
The ‘price barrier’ is also a
                                      your next event                                                            by donating leftover delegate
misconception – there are a                                                  5. Energy: Select a venue           bags or potted plants and
number of changes we can make                                                that has an energy efficiency
in the industry without paying        1. Planning: Sustainability            policy in place and ask them        planting trees in the area. The
more. A sustainable event can         must be part of the vision for         if they are able to monitor the     social legacy aspect includes
include practices that save costs.    the event from the first day of        energy usage during your            employing and training local
   Organisers who want to             planning. Start looking for ideas      event. Also look at the             people and promoting local
encourage their clients to host       and suppliers from the very            number of service providers         job creation. For example,
events and conferences that           beginning and ensure that you          and vendors who may use             you can hire a local dance/
are more sustainable need             have a statement regarding             generators on site. Look at         music group as entertainment,
to be equipped with enough            your intentions surrounding            the use of natural light at the     or employ local unemployed
knowledge to answer the client’s      sustainability issues as this will     venue for daytime events and        community members to assist
questions and address concerns.       help you stay focused. Make            conferences and ask the venue       with waste separation. Always
                                      your statement public wherever         if they use renewable energy        avoid damaging the natural and
Making the change                     possible so that your client,
                                      committee, suppliers, exhibitors
                                                                             through solar panels or wind        cultural areas. Remember that
                                                                                                                 your event often affects the local
                                                                             turbines. You can also look into
The timeline for achieving event      and delegates are aware. Try to        purchasing renewable energy         communities through increased
sustainability often depends on       keep paperwork, documents and          certificates for the event.         traffic, noise and waste. So be
the scale of the event as well as     registrations electronic.                                                  mindful.
the level of commitment from                                                 6. Emissions: Plan logistics
the PCO and client. Some small        2. Procurement: Choose                 carefully and select your                         u Meet continues on p10
events with full commitment           the greener option wherever            destination and venue wisely.

8   September 2014 • TRAVEL BUYER
           Tips for Better Business Travel
    Travel often equates to travail. Business travel is hardly ever described
    as a picnic. In fact, traveling on business can be exhausting and highly
    stressful. However, there are steps that can make this a more positive
           experience even under the least desirable circumstances.

PLAN AHEAD                                     and mobile tools to help manage the trip
                                               in real-time will make this process simpler
Taking time and advice to plan ahead of
                                               and free of hassle or stress. UNIGLOBE
time can make a huge difference in the
                                               mobile itineraries, online travel guides
quality of travel. Delays and changes can
                                               and advisories, on site offices worldwide
be expected as something always comes
                                               and knowledgeable staff provide the
up at the last minute. Planning for these
                                               security of knowing you have dependable
situations in advance can decrease stress
                                               and professional people and systems
and increase productivity. UNIGLOBE
                                               supporting your travellers
has online and personalised support
systems to help you plan ahead. With
over 700 offices in over 70 countries we       BE FINANCIALLY
have the network and resources to help         PREPARED
you plan a better trip. Our online trip
                                               Individual travellers should be financially
planning, approval and booking system
                                               prepared for all business travel financial
enables corporates to efficiently and
                                               needs. In addition to carrying the
simply manage what can be a complex
                                               company credit or debit card, cash and
problem. Our expert consultants are able
                                               insurance may also come in handy.
to support you 7/24/365
                                               UNIGLOBE can help your travellers
                                               ensure they have the financial resources
HAVE BACKUP AND                                for any eventuality on the road through
SUPPORT                                        the most efficient and economical means.
Besides ensuring that there are hard copy
and digital copies of all key documents        SECURE COMFORTABLE
available, ensure you have back up             TRAVEL ARRANGEMENTS
and support on the road. UNIGLOBE’s
                                               UNIGLOBE will also help travel
mobile, online and after hours 7/24/365
                                               arrangers make the travel arrangements
Emergency Solutions provide for total
                                               comfortable from online check-in to
peace of mind for the traveller, travel
                                               securing that special seat , to business
arrangers and companies who take               lounge passes, upgrades, loyalty
seriously their duty of care for travellers.   programme management and rescue line
                                               services in the event of emergencies -
TIME AND COST                                  your travellers safety and comfort needs
MANAGEMENT                                     are our key focus. Staying comfortable
                                               and secure throughout the whole trip can
Timing of trips can be critical not only
                                               make a huge impact not only the overall
for achieving business objectives, but         trip experience but also the final business
also managing travel costs. UNIGLOBE           results.
online trip planning, requisition, approval,
booking, tracking and reporting systems
will provide you with the means to             TAKING DOWN TIME
manage company human and financial             Business travel is about business.
resources efficiently, effectively and         However, it is important to stay
economically. This includes supplier and       rejuvenated to be on top of your game
loyalty contract management, as well as        and giving only your best. The traveller
managing those last minute specials and        should make time for something
global procurement deals.                      enjoyable while on the trip and make
                                               sure to relax and unwind afterwards.
                                               philosophy also extends to providing
DESTINATION                                    mobile, online and offline support for
Knowing where the traveler is going,           breakaways and excursions during and
where the traveller is at any one moment       after the business trip.
and what to expect can help decrease
anxiety and allow for a smoother transition.   UNIGLOBE - TRAVEL SIMPLIFIED
Having valuable destination management         700 offices in 75countries on 6 continents
guides7/24/365 alerts, with online tools       servicing the world.
The good, the bad and the unusual...
Celebrating the end of the year together remains one of the most effective ways of rewarding
both clients and staff, but doing things differently can be tricky in light of tight budgets and time
constraints. Liesl Venter talks to PCOs to find out what makes the difference.

         YEAR-END function is                                                                                                                 an event that will speak to the
                                                                                          Your event should
         a wonderful medium                                                                                                                   majority of the people’s interests.
                                                                                          aim to create a fun
         to get people to realise                                                                                                             In other words, racey dancers
         which goals have been                                                            atmosphere for most                                 are not going to impress a
achieved, which projects have                                                             people attending.                                   conservative group of people
been successful and where there                                                                                                               any more than a performance
is still work to be done – all in                                                                                                             by a group of tenors is going to
a social and relaxed manner,                                                                                                                  keep a young, active audience
believes Beatrix Lourens, md of                                                                                                               interested.”
Beatrix Events. “Employees end                                                                                                                   The experts agree that the
the year motivated and clients                                                                                                                location needs to be well placed,

                                                                                                                         Pic: EVENT AFFAIRS
are inspired.”                                                                                                                                easily accessible and offer ways
   There is much to be gained                                                                                                                 for people to get home safely if
from a well-designed year-end                                                                                                                 they have been drinking.
function. “From teambuilding                                                                                                                     “And don’t forget about the
with employees struggling                         Corporates should also never      away from spending on year-end                            basics,” says Cloete. “Good food,
over obstacles, themed events                  underestimate the value of a         functions due to the recession                            parking, safety and security.”
with the office nerd dressed up                thank-you. Thanking staff and        and budget constraints but as
like Austin Powers to the most                 clients goes a long way to boost
                                               morale, improve relationships
                                                                                    Elouise Cloete of Shift Ideas
                                                                                    points out, end-of-year functions
                                                                                                                                              Keep your guests
glamorous gala dinners, there
is something very beautiful in                 and set the tone for the next year   do not have to be expensive                               front of mind
seeing a company get together                  of business, she says.               and over the top. She cautions,
                                                  Many corporates are veering       however, about under-spending.                            Although unusual, out-of-the-
successfully on a social level.”
                                                                                    “Too little effort can have                               ordinary events can be a lot of
                                                                                    disastrous effects, negatively                            fun, they require an audience
                                                                                    affecting morale.”                                        willing to go the extra mile.
                                                                                       Megan Buchanan, co-founder                             “There is no point having a
                                                                                    of Event Affairs, says if there is                        dress-up if the majority of the
                                                                                    no thought or effort put into the                         guests are not willing to do so
                                                                                    event it simply becomes a waste                           and will arrive in their Sunday

   You Are Invited!
                                                                                    of time and money.                                        best anyway,” says Buchanan.
                                                                                                                                              “You will be far better advised
                                                                                    Ensuring success                                          then to have a formal sit-down
                                                                                                                                              dinner as that will be more
   Educational and networking event                                                 Making magic is what                                      enjoyable for them.”
              Date:          Friday 19th September 2014                             year-ends are all about, says                                Making sure staff and clients
                                                                                    Lourens, but it has to happen                             are acknowledged in a way that
              Time:          08:00 for 08:30 to 13:30                                                                                         is familiar and acceptable to
                                                                                    within a budget. There is little
              Venue:         The Hyatt Rosebank Ballroom                            room for error at a year-end                              them is very important.
         R 250 per person for non Site members                                      function due to the emotional                                “In general, people do enjoy
                                                                                    expectations associated with it.                          something different and funky
      R 200 per person for Site and ABTA members                                                                                              but it must aim to have a major
                                                                                      Buchanan says it is important
                To register, call Clare +27 76 898 042,                             to know the crowd with whom                               impact and create an atmosphere
                                                                                    you are working. “Try to gather                           that is fun for most people
                     email:                                  as much information about                                 attending,” says Lourens.
                                                                                    who is attending and what their                              So whether it’s sundowners
                                                                                    interests and behaviours are so                           on Table Mountain or a disco in
                                                                                    that you can have something                               Sandton, it’s not what you do, but
                                                                                    for everyone or at least organise                         who you do it for, says Cloete.

                                                                                                    Top tips for success
                   Supported by                                                        If you don’t buy into an 		                            Keep everyone together.
                                                                                        idea, theme or venue – don’t                           Don’t underestimate the
      For anyone involved with the purchasing, planning and hosting of incentive        present it.                                             importance of entertainment.
                            travel, Inbound or Outbound.                               Make provision for various                             Plan in advance.
               We encourage the attendance of all Corporate Travel Buyers,              cultures when it comes to 		                           Make sure your ideas have
               Procurement Managers, Accommodation providers, Airlines,
           Destination Marketing organisations and Event Industry Professionals.
                                                                                        entertaining and catering.                              not been done before.

10         September 2014 • TRAVEL BUYER
5                budget-friendly ways
                 to liven up your year-end
Under pressure to find innovative ideas for your year-end function that won’t break
the bank? Sandra Minnaar, owner of Conference Complete, offers five cost-effective suggestions.

Fancy dress                         to interact with one another.
                                    Minnaar says this can be
                                                                        food. Potjiekos competitions
                                                                        are simple to facilitate – staff
                                                                                                              area or taking Christmas gifts
                                                                                                              to underprivileged children.
Nothing encourages the              organised internally quite easily   members should be split into          A breakfast or lunch could be
spirit of camaraderie like the      and held at a school sports         teams and provided with a             organised, giving staff members
opportunity to dress up, which      ground. An end-of-year sports       budget to buy their ingredients.      the opportunity to interact with
is why Minnaar suggests holding     function is best complemented       An impartial judge can assess         members of the community.
a fancy dress party on the          by a fun and interactive lunch      different categories, from best
company’s premises. Staff can       or dinner such as a braai. In
                                    cases where the number of staff
                                                                        potjie to best presentation and
                                                                        most team spirit.
                                                                                                              An evening with artists
be placed in teams, allocated a
specific budget, and then take      members is more than 900,                                                 Amazink in Stellenbosch is a
part in a competition to decorate   fast-food franchises can be
                                    brought in (at their own cost) to
                                                                        Community projects                    venue that enables groups
different parts of the venue.                                                                                 to support local artists while
A more significant portion of the   set up stalls so that employees     One of the best ways to motivate      enjoying an evening of culture
budget can then be spent on         can move from vendor to vendor      employees and allow them to           and entertainment. Minnaar says,
bringing in external caterers.      in a fête-type of environment.      feel part of a bigger picture         for about R200 a head, catering
                                                                        is to arrange for them to give        and décor is included. Similarly,
Sports challenge                    Potjiekos competition               back to their community.              Richard’s Supper Stage and Bistro
                                                                        This can be done in a number          in Sea Point showcases local
A round robin sports day is         Stay in budget by getting your      of different ways, such as            performance talent.
another great way for employees     colleagues to cook their own        helping to plant trees in the                      u Meet continues on p12


                                                                                                           September 2014 • TRAVEL BUYER     11
Event planners looking for a completely different add-on or
              team-building activity to sweeten up an event or conference
              should consider the secretive world of chocolate making at
              the Chocolate Studio. Liesl Venter finds out.

                     HERE is something     Master Swiss Chocolatiers,           besides being out of the

                                                                                                                                                             Pic: DEBBIE BADHAM
                     uniquely seductive    participants are shown how to        ordinary, the classes are fun.
                     about chocolate.      make a masterpiece of their own         "The best part, of course, is the
                     From the aroma        using the Lindt chocolate ranges.    end product. You are creating
             and texture, to the              The workships offer each          a masterpiece with the finest
             tantalising taste, what’s     participant the opportunity to       chocolate available and you              In addition to sharing the
             not to love?                  gain insight and obtain a better     get to take it home with the             secrets of chocolate making,
                The Chocolate Studio       understanding of the secretive       knowledge of how to do it again."        the studio also creates
             is the brainchild of Lindt    world of chocolate making and           On the practical side, the            hand-made chocolate products
             Chocolate and is the          its confections, says Catherine      activity can be pre-arranged             and desserts for corporate gifts.
             first of its kind in South    Abplanalp, Lindt & Sprüngli retail   to conform to the timeline
             Africa. Based in both         and project manager.                 available. Ranging from as little
             Johannesburg and Cape            A variety of workshops are        as one hour up to five hours, it is    suit just about any budget and
             Town, the Chocolate           on offer, including the creation     completely dependent on what           the application options of the
               Studio offers specialised   of a chocolate showpiece,            you want to make and how much          courses available are endless,
                 training workshops        learning how to use moulds           time you are willing to spend on       from team building where you
                   to entry-level chefs,   and fillings, to the making of       the activity. Being indoors, it is     get to choose what you would
                    non-professionals      hand-crafted truffles, petit         also not weather dependent and         like to do in the course, right
                    and chocolate          fours, chocolate confectionary       can be worked into a schedule          through to bringing guests to the
                    enthusiasts alike.     and the art of mousse cakes.         during the day or in the evening.      studio after dinner to create their
                  Guided by Lindt’s           According to Abplanalp,              “We can build a course to           own dessert.” g


12         September 2014 • TRAVEL BUYER
On the radar - LCCs

Low-cost carriers enter long-haul market
                                                           Low-cost carriers are
                                                        tackling their next frontier,
                                                        long-haul air routes, writes
                                                            Michelle Colman.

        VIATION observers are         setting up hubs throughout                 Opinions on the success of          be key for LCC long-haul success,
        keeping a keen eye on a       Asia, which will give it bases into     low-cost, long-haul services are       and despite its early problems,
        new development in the        areas further afield. Despite a         split. Detractors allude to higher     the B787 Dreamliner, as well as
        no-frills, low-cost arena     false start some years ago when         fuel burn per passenger on longer      the A350, have been mentioned
– the movement of low-cost            long-haul services to the UK were       routes, and higher labour and          as good options for LCCs.
carriers (LCCs) into the long-        dropped, it is determined to            in-flight costs such as crews and         Should LCC carriers become a
distance market.                      serve Europe and North America.         catering. The need to contain          fixture on the long-haul scene,
   The movement is not new, its       Scoot, Singapore Airlines’ low-         costs by keeping aircraft in the air   travel buyers may find themselves
history going back to Freddie         cost sibling, has also made its         would mean complex scheduling          reaping the benefit of an initial
Laker’s London-New York               intentions to enter the medium-         and inconvenient departure times       price war. But this will accompany
Skytrain of the early 80s and         and long-haul arenas known.             across time zones, with little         a turbulent market, until such
followed by other start-ups, none                                             passenger appeal. Seat capacity        time as a settling occurs. It must
of which went the distance.                                                   would have to be increased to          also be borne in mind that the
   To cite some of these ventures      LCCs will likely continue              cover costs, cutting into profitable   discount window could be
in Europe, Norwegian Air                                                      cargo space. LCCs would also be        temporary, as price wars are
Shuttle commenced services            to outperform traditional               competing with long-established,       inevitably followed by periods of
from Gatwick to New York, Los
Angeles and Fort Lauderdale in
                                          airlines in terms of                successful charter airlines.
                                                                                 The result would be less
                                                                                                                     consolidation, where prices rise
                                                                                                                     once again.
early July. The airline, which is       end-user affordability.               price-elasticity in the long-haul         Service differences between
looking at Cape Town among                       - Hein Kaiser                market and thereby less ability to     legacy carriers’ economy
its future ports, also operates                                               attract passengers.                    class and LCCs are narrowing.
to US points from a series of            Many international LCCs have            Others believe that with            Traditional carriers are beginning
Scandinavian cities. Lufthansa is     just about spun out their double-       the right aircraft, optimum            to charge for meals, reserved
in talks with Turkish Airlines on     digit growth and now seek new           management of fuel costs               seats and checked baggage,
the establishment of a discount       air space as short-haul networks        and good utilisation of digital        while a growing number of LCCs,
arm, Wings, to serve destinations     become saturated. Their success         marketing and booking aids,            for their part, are introducing
in the Indian Ocean and Asia,         in many markets has been                LCCs stand more than a fair            services such as allocated seating.
thereby fending off competition       phenomenal. In Asia-Pacific, some       chance in long-haul. Norwegian            Says Hein Kaiser, head of
from the hugely successful Gulf       50 budget airlines now carry            Air Shuttle’s ceo, Bjorn Kjos,         communications at Mango:
carriers. LCC giant, Ryanair,         close on 60% of domestic and            recently told the travel industry      “LCCs may introduce competitive
has stated its intentions to go       regional traffic; nine of the world’s   newsletter, Skift, that the long-      products that are retailed
transatlantic in a big way.           15 busiest low-cost air routes are      haul, low-cost environment had         for ancillary revenue. LCCs
    In Asia, the medium- and          located here and most legacy            been changed by more fuel-             traditionally operate from a
long-haul operation of AirAsia,       carriers are invested in a low-cost     efficient planes, the internet and     much lower cost base and as
AirAsia X, is flying to 17            operation in some way. In Europe,       a shift in global economic power       such would likely continue to
destinations in Asia, Australia and   LCCs account for some 40% of            to the East.                           outperform traditional airlines in
Saudi Arabia. The LCC intends         air traffic.                               The right equipment is said to      terms of end-user affordability”.

  Local skies fill with more LCCs
SOUTH African air routes will         and Port Elizabeth; and Cape            the failed 1time. Fly Blue Crane, a planned the
be a lot busier if all the LCCs       Town and George in October.             subsidiary of Blue Crane Aviation      inauguration of services
mooted recently do succeed in         Initially set to start operations       and headed by former SAA ceo,          between Victoria Falls,
launching operations.                 in late 2013, it was blocked            Siza Mzimela, has also applied         Zimbabwe and Johannesburg
  Mango and remain         when competitors brought an             for an air services licence for the    on July 23 at a one-way fare of
the stalwarts of the local LCC        urgent application to interdict         same route.                            R99 excluding taxes, but a week
tableau, which has proved erratic     the airline, based on its not             Regionally, the airline fastjet      later the Civil Aviation Authority
as airlines come and go. Names        meeting the 75% domestic                recently began flying between          of Zimbabwe (CAAZ) revoked
such as Flitestar, Nationwide,        ownership requirements.                 Johannesburg and Dar es                the airline’s South African
Velvet Sky and 1time are now          FlySafair has since remedied its        Salaam, and intends developing         pilots’ validation to fly. The
nothing more than distant             shareholding.                           Johannesburg as one of its             carrier successfully commenced
memories.                                Skywise, another new venture         African hubs. Khuphuka Kings           services on August 1.
  FlySafair, founded by Safair,       planning to fly between                 Airways, a cargo carrier, plans           Should these new entrants get
will begin scheduled passenger        Johannesburg and Cape Town,             to move into passenger services        off the ground, what’s in it for
services between Cape Town            has yet to take off. Behind this        between Durban and Nigeria,            the local travel buyer or TMC?
and Johannesburg; Cape Town           undertaking are the founders of         Swaziland and the DRC.                            u feature continues on p14

                                                                                                                 September 2014 • TRAVEL BUYER        13
On the radar - LCCs

                                                        Pic: MAngo
                                                                              Fastjet strengthens
  u feature continues from p13

                                                                              presence in Africa
                                                                              By Debbie Badham
For one, more competitive fares         positive impact for consumers         FASTJET continues to extend
to start. FlySafair’s rates for early   given the natural competitive         its reach within Africa, moving
bookers are as low as R499 and          inclination vis a vis pricing, but    forward with a number of

                                                                                                                                                      Pic: Fastje t
R399 one way between Cape               “one cannot assume that the
                                                                              different developments on the
Town and Johannesburg and               launch pricing of any airline would
Port Elizabeth respectively,            be maintained throughout”.
                                                                                 Richard Bodin, fastjet
including taxes. That’s half those        Dave Andrew, FlySafair ceo,
                                                                              chief commercial officer,
of its LCC competitors. Although        has stated that the new airlines’
                                                                              reveals that the airline’s base in
the base rate covers a seat only,       announced fares are not simply
                                                                              Zambia remains a top priority.
and extra charges apply for             opening ploys and that the
                                                                              “The project to obtain our air
checked baggage (R300) and              low-cost model applied is
                                                                              operator certificate (AOC) is well
pre-seating, the FlySafair fares        sustainable. The average fare
                                                                              underway and things are moving       excited about the launch of
represent considerable savings.         across all seats in aggregate
                                                                              forward positively,” he says.        its third international destination,
   Both LCC and traditional             exceeds the cost of operation
                                                                                 The airline which is currently    Harare, and inaugurated
carriers are likely to react to these   the flight, he says.
                                                                              based in Dar es Salaam, Tanzania,    thrice-weekly flights to that
reduced fares with adjustments            Kaiser cautions that in
                                                                              hopes to have the second base in     city from Dar es Salaam on
of their own, bearing in mind           recent years aviation and GDP
                                                                              Lusaka up and running soon.          August 5. Fares start as low
the price-sensitivity of the South      growth have de-coupled with
                                                                                 Fastjet recently announced        as US$50 one-way, excluding
African market. But would it            negative growth in passenger
be just a matter of time until          numbers. The introduction             that it would be disposing of        airport and government taxes.
sustainability rears its head?          of additional capacity could          its holding in Fly540 Kenya.            Bodin notes that fastjet’s
   Hein Kaiser, Mango’s head            negatively impact the                 This comes on the back of an         route between Dar es Salaam
of communications, says the             equilibrium between supply            in-depth evaluation into whether     and Johannesburg continues to
introduction of competitive             and demand, and thereby the           Fly540 possessed enough of the       grow.
domestic airlines always has            aviation sector commercially.         essential elements necessary            He believes that it is the
                                                                              for the carrier’s expansion. “At     success of fastjet in Africa
                                                                              the end of the day we decided        which has attracted new LCC
                                                                              it would make more sense to          competitors to the continent.
                                                                              develop a brand new AOC,”            “There are 1,1 billion people
                                                                              comments Bodin, referring to the     in Africa representing a vast
                                                                              establishment of a new airline,      untapped market – as such we
                                                                              fastjet Kenya.                       believe that competition can
                                                                                 The airline is particularly       only be a good thing.”

                                                                                News Flash...
                                                                                 MANGO was named the               FASTJET customers can now
                                                                                 Best Low Cost Airline in          select and pay for a preferred
                                                                                 Africa at the World Airline       seat when booking their
                                                                                 Awards presented by               flights, or add their preference
                                                                                 Skytrax recently. The             to their booking up to 24
                                                                                 recognition places Mango          hours before departure. The
                                                                                 in the Top 100 global             cost is US$5 per seat one-
                                                                                 airlines for 2014 following       way for premium seats in
                                                                                 a worldwide customer              the ‘quick-exit’ rows and the
                                                                                 satisfaction voting               ‘extended leg-room’ seats.
                                                                                 process late last year.           The cost for reserving a
                                                                                    To date, Mango has carried     non-premium seat is US$3
                                                                                 in excess of 11m passengers       per seat one-way.
                                                                                 between eight airports
                                                                                 across the country and            KENYA Airways and
                                                                                 between Johannesburg     are participating
                                                                                 and Zanzibar. In October,         in a bilateral codeshare
                                                                                 it will increase frequencies      agreement, connecting
                                                                                 between Johannesburg              their networks via OR Tambo
                                                                                 and Port Elizabeth by 55%         International Airport. The
                                                                                 with the addition of return       partnership is in line with
                                                                                 services on Mondays,    ’s medium- to
                                                                                 Thursdays, Fridays and            long-term strategy to grow
                                                                                 Sundays.                          its African footprint. g

14     September 2014 • TRAVEL BUYER
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