THE cost reduction
benefit offered by
sharing economy
options such as Airbnb is
one of the main reasons
why these alternatives have
been embraced so widely by
consumers. Recent research
by travel cost comparison
website, busbud.com,
showed the average hotel
booking in key European
cities like Berlin, Madrid,
Paris and Vienna, cost
nearly twice as much as an
Airbnb stay.
As Marco Cristofoli, coo of
BidTravel’s Leisure Cluster
points out: “It’s all about
saving costs – or at least,
the perceived savings of
costs.”
It’s not just with
consumers that the sharing
economy is gaining ground
– TMCs are starting to take
notice as well. In July, Airbnb
announced partnerships
with Carlson Wagonlit Travel,
BCD Travel and American
Express Global Business
Travel, making it a preferred
supplier. The agreements do
not extend to the SA market
at this stage, and have only
gone live in the US, with
plans to expand to the UK,
France and Germany during
the remainder of the year.
But it may not be too
long before South African
companies follow suit. Ben
Langner, md of Carlson
Wagonlit South Africa, says:
“I expect these options
to become part of some
managed travel programmes
in the relatively near
future – with an important
caveat: travellers’ safety
and security cannot be
compromised.”
Proceed with caution
Indeed, many SA-based
agencies remain very
hesitant to recommend
sharing economy providers
to their corporate clients
due to concerns around the
duty-of-care implications.
Raylene Pienaar, gm
of Corporate Traveller,
says it’s too early for
TMCs to consider booking
sharing economy providers
for corporate clients
because TMCs are unable
to verify the quality of
accommodation and
transport before booking.
“We only use certain
rated hotels and transport
companies, which means
you know what facilities
you’re going to get. When
booking elsewhere,
business travellers
might end up in a noisy
guesthouse or a room in
someone’s house where
they won’t necessarily have
the privacy and workspace
they need.”
She adds that noise
may be the least of the
company’s worries. “When
it comes to business travel,
companies are responsible
for their employees’
safety and there are risks
associated with using
providers that can’t be
verified.”
Furthermore, she says
sharing economy platforms
could also jeopardise
companies’ data security.
“When booking through
a travel management
company, businesses’ credit
card details are kept in
one place, minimising data
security risks. In the sharing
economy, you share your
details with several different
service providers,” says
Raylene.
TMCs can manage the risk
DESPITE concerns, many
TMCs believe sharing
economy providers are
here to stay, and that travel
management is going to
have to transform and
adapt to keep up with
this new way of buying.
Monique Hilton, md of
BCD Travel, says most
travel programmes are
slowly, and sometimes
reluctantly, having to give
sharing economy services
serious consideration. “The
consideration combines
well with a dynamic pricing
and demand management
sourcing strategy,
especially for companies
that have a mature
programme where there is
visibility and knowledge of
spend,” she adds.
Monique also says that
many travel programmes
have become less
dependent on traditional
methods of managing
duty of care, by using
more effective mobile
geolocation services.
“Corporates need to
embrace and assess each
service and TMCs must
be agile in adapting and
introducing technologies
that embrace detractors
and the sharing economy.”
Marco Ciocchetti, ceo
of XL Travel, agrees that
the duty-of-care risk can
be managed. “The leading
businesses that are
advancing the concept of
the sharing economy are
in many respects no longer
insurgents or newcomers.
The size and scale of
Uber, Airbnb and several
other firms now rival,
or even surpass, those
of some of the world’s
largest businesses in
transportation, hospitality
and other sectors.”
He says that in order
to secure the business
of large international
corporates, sharing
economy providers have
had to work with TMCs
to build interfaces that
allow companies to track
bookings made by their
employees for the purpose
of duty of care.
Marco Cristofoli says
while there is an element
of risk involved in using
a universal platform that
is open to everyone, this
is not unique to sharing
economy providers. “We
believe though, that
due to the nature of the
sharing economy, these
platforms take their
security seriously. Breach
in security could result
in the complete loss of
business,” he adds.
Will admin woes follow?
SOME travel
professionals
believe the
sharing economy
should not be
considered
for business
travel just yet
because of the
complications
related to
paperwork.
“In a sharing
economy
environment, you might end
up with several invoices
and expense claims, which
will lead to more paperwork
and less time for important
tasks,” says Raylene
Pienaar of Corporate
Traveller, adding that sharing
economy platforms currently
make it very difficult to
budget for and manage
expenses on business trips
because travellers often
have to pay for services as
and when they make use of
them.
“It may also be difficult
to separate
expenses that
are incurred
on a personal
basis from those
that need to be
covered as part
of the business
trip,” she adds.
Raylene points
out that approval
processes are
also likely to be
disrupted, as
travellers will make bookings
themselves instead of
working through a central
point within the company.
On the other hand,
others believe that major
progress has been made
in bringing processes
and systems in line with
corporate requirements.
Monique Hilton of BCD
Travel, says initial concerns
about the integration of
data have been catered
for by new ways to push
the transactional data into
programme data.
Five great butget- friendly deals
Mango has introduced
discounted fares
for flights between
Johannesburg and Port
Elizabeth, starting from
R699. The booking
deadline is October 31
for travel until November
30.
Cruises International is
offering a seven-night
cruise in Dubai on Vision
of the Seas. Fares start
from R9990pps, including
compulsory charges and
gratuities. The cruise
departs on February 20,
2017. Highlights include
Dubai, UAE; Khasab,
Oman; Muscat, Oman,
and Abu Dhabi, UAE.
Aha is offering
discounted rates at
several of its Gauteng
properties during
December. Guests can
stay at aha Kopanong
Hotel & Conference
Centre near OR Tambo
International Airport
in Johannesburg for
R600 per room, aha
Lesedi in the Cradle of
Humankind for R900
per room, or aha River
Place Lodge in Centurion
for R1 000 per room.
Each accommodates a
maximum of two guests
per room and the rate is
inclusive of breakfast.
Rates are valid from
December 1-31, 2016.
For R12 530pp sharing,
Development Promotions
is offering an 11-day
Eastern Med and Holy
Land cruise on board
the Norwegian Spirit,
departing from Venice
on November 28. The
package includes 10
nights in an inside
cabin, all meals and
entertainment (on board),
port charges and taxes.
The itinerary is ZadarAthens-Limasol-HaifaKatakolon-Venice.
Starting from R15
850pps (cruise only),
Cruises International is
offering a seven-night
Western Caribbean
cruise aboard Celebrity
Silhouette. The cruise
departs on March 5,
2017. Highlights include
Fort Lauderdale, Florida;
Cococay, Bahamas;
Cozumel, Mexico;
George Town, Grand
Cayman; and Falmouth,
Jamaica.
