Incentives feel the pinch
OVER recent years
companies have
seen their budgets
for incentive travel shrink
considerably. The incentive
market, however, is far
from dead. On the contrary,
incentive houses report
unabated demand.
Carol Weaving, md of Thebe
Reed Exhibitions, says the
past few years have been a
time of caution in terms of
spending for many companies
with the international
economic crisis but as we
move into 2014 the need to
hold on to loyal customers
and staff is rapidly returning.
What are the main incentive
travel trends for 2014?
1. Value for money
Budget and value for
money are undoubtedly the
overriding tendencies to
expect, say industry players.
Kathy Nel, national manager
Rennies Travel, comments:
“The main trend is that
everyone is very conscious
of budget limitations, and
everyone wants to get as
much value as possible from
their budget.”
Pia Dewar, sales and
marketing executive for Lu
Dowell Representations,
agrees. “Suppliers’
quotations are being
scrutinised and agents are
fiercely negotiating pricing
on programmes as they try
to get as much ‘bang for
their buck’ within limited
budgets.”
The budget awareness
of clients has put a lot
of pressure on incentive
houses, as clients often
expect the same experiences
on a smaller budget. Johan
Venter, business unit
manager: incentive travel
for Uwin Iwin Incentives,
explains: “We have found
that budgets for some
clients have not increased
for several years but the
client still expects to receive
value for their money, so
the onus has shifted to the
incentive house to come
up with creative ways to
maximise value add and
return on investment.”
Clients also analyse
invoices with care. “Our
clients are certainly very
aware of how and what their
money is being spent on and
a lot of them now ask for
supplier invoices to ensure
that they are really charged
the nett rate without any
additional mark-ups over
and above our management
fee, and reconciliations
are examined with a fine
toothcomb,” he says.
2. All-inclusive cruising trips
Although luxury five-star
hotels and resorts are
still very desirable and
those with enough budget
prefer to go this route, the
focus has shifted to added
value. Stephanie Moss,
director of Stephanie
Moss Solutions, says fully
inclusive incentive options
are very much the trend
for the coming year, with a
special focus on cruising.
Johan agrees that the allinclusive
cruising product
is on the rise. “Clients
know upfront what their
spend will be without any
hidden costs or additional
billing on completion of the
trip. Cruising is extremely
popular with the South
African market and some
of our clients only cruise
now, the reason being that
they prepay everything –
including drinks packages
– in advance.” The days
of raising massive recon
invoices on completion of
the trip are over, he says,
as clients don’t want nasty
surprises at the end of
the trip.
Dalene Oroni, groups
and incentives manager
for Cruises International,
confirms that business
has picked up during the
past years. Nevertheless
budget constraints
can also be felt in this
sphere. “The majority of
incentive groups have
a very limited budget,
between R15K and R25K
per person at the most.
This needs to include
flights, transfers, drinks,
visas and cruise.” Dalene
says budget awareness
has led to shorter cruises
of between four and five
nights. Groups are also
getting smaller. “We might
have the same amount of
groups sailing, however
the turnover will be a lot
less due to the group
size.
2. All-inclusive cruising trips
Although luxury five-star
hotels and resorts are
still very desirable and
those with enough budget
prefer to go this route, the
focus has shifted to added
value. Stephanie Moss,
director of Stephanie
Moss Solutions, says fully
inclusive incentive options
are very much the trend
for the coming year, with a
special focus on cruising.
Johan agrees that the allinclusive
cruising product
is on the rise. “Clients
know upfront what their
spend will be without any
hidden costs or additional
billing on completion of the
trip. Cruising is extremely
popular with the South
African market and some
of our clients only cruise
now, the reason being that
they prepay everything –
including drinks packages
– in advance.” The days
of raising massive recon
invoices on completion of
the trip are over, he says,
as clients don’t want nasty
surprises at the end of
the trip.
Dalene Oroni, groups
and incentives manager
for Cruises International,
confirms that business
has picked up during the
past years. Nevertheless
budget constraints
can also be felt in this
sphere. “The majority of
incentive groups have
a very limited budget,
between R15K and R25K
per person at the most.
This needs to include
flights, transfers, drinks,
visas and cruise.” Dalene
says budget awareness
has led to shorter cruises
of between four and five
nights. Groups are also
getting smaller. “We might
have the same amount of
groups sailing, however
the turnover will be a lot
less due to the group
size.
3. Local flavour
Local is definitely lekker,
according to Geoff Saner,
md of Leading Incentives.
He says companies are
increasingly seeing value
in the beauty of South
Africa and its depth of
incredible experiences.
“While they don’t always
save much on their
budget by staying within
our borders, they do get
to experience places they
thought were boring – but
it takes an experienced
and professional
incentive travel company
to produce really
memorable occasions
out of seemingly nothing
and nowhere.” Regional
travel has also picked up,
according to Geoff.
Carol concurs: “South
Africa and Southern Africa
as a whole offer a wide
range of experiences.
We have the entire
infrastructure that is
required, ranging from
small intimate groups to
large events. Cape Town
is growing in stature as
a destination of choice,
not only for South African
corporates but for
companies outside our
borders too.”
Johan, too, has seen an
increase in demand for
local destinations, mainly
because the length of
the incentive trips has
decreased considerably.
“Clients prefer to stay
closer to home and spend
fewer nights away – with
a significant increase in
travel to destinations such
as Mauritius, where the
rand still remains strong,
resulting in excellent
value for money.”
According to GCD
Consulting’s Gill Dewar,
Europe and Dubai are
also in great demand.
Having surveyed a few
incentive houses to gain
insight into current trends
and movements, she
says: “I thought there’d
be more travel to budget
destinations but a lot of
businesses decide to go
to Europe. I didn’t expect
that.” She adds: “Dubai
is hot again. There are so
many new things to see in
Dubai, everyone wants to
go there.
4. Last-minute decisions
Lead times for incentive
trips have also decreased of
late, with companies often
deciding only a month or two
beforehand to organise a trip.
Hector van der Walt, md of
Giltedge Incentives, has seen
an increase in enquiries with
a lead time of less than 30
days. This obviously puts
quite a lot of pressure on the
incentive houses.
5. Soccer in Brazil or rugby in the UK?
Incentives around sporting
events are always a hit with
the SA market.
Johan says there is definite
interest in the FIFA World Cup
in Brazil this year but “it still
remains a very expensive
option, as with most sporting
events, so very few still book
and confirm after seeing the
costs involved”.
The Rugby World Cup in
2015 is also high on the
agenda. Tickets can be
obtained in South Africa
from the South African Rugby
Union (SARU) or Tourvest.
Jurie Roux, ceo of SARU,
says: “Now, for the first time,
we can offer very competitive
packages to rugby events
with interesting itineraries
and a host of additional
value-added travel services
for fans who want to follow
the Springboks in England
in 2015.
6. Freedom from the pack
Freedom to explore a
destination without the
restrictions of a group is an
important trend that has
emerged. Gill says clients
often ask for a EUR or USD
allowance for a lunch or
dinner so they can ‘do their
own thing’ for a meal, away
from the group. She says it
is important to find a good
balance in the itinerary
between formal activities
and some flexibility for
group members.
SA corporates discover Zanzibar
ZANZIBAR has grown
in popularity with SA
corporates, partly as a
result of Mango’s direct air
services. The new twiceweekly
flight allows MICE
visitors to spend short stays
of three or four nights on
the island, a popular option
for corporates that can’t
afford long absences from
the office.
Hideaway of Nungwi
Resort & Spa has
reported rising bookings. A
spokesperson for the resort
told TNW: “Hideaway of
Nungwi opened on April 30
last year and within weeks
of opening we received a
number of group enquiries
from around South Africa.
That trend is expected
to continue well into this
year and we have already
received a record number
of requests for 2015 and
2016 as well. It would
appear that, despite the
slight decrease in MICE
bookings over the last few
years, the market seems to
be recovering and Zanzibar,
having remained price
competitive, coupled with
a superior group offering,
is back on the corporates’
lists of choices.”
The resort has also noted
an increase in demand
for short four-night stays
on an all-inclusive basis.
Its all-inclusive package
offers three meals a day,
mid-morning and afternoon
teas and treats, a range of
beverages and a superior
wine and cocktail list. “This
alone makes the decision
to travel as a group so
much more attractive –
no nasty extras bills on
check-out,” commented the
spokesperson.
Hideaway of Nungwi,
situated on the northwest
coast of Zanzibar,
boasts a range of
conference facilities that
can accommodate from
16-140 people. Conference
packages are tailor-made on
a group-by-group basis, with
discounts offered for groups
in excess of 25 delegates.
Rates are highly negotiable
and vary according to
season.
Incredible ideas for India
WITH a favourable exchange
rate, widely spoken English
and an intriguing diversity of
cultures, India is growing as
an incentive destination for
South Africans.
The promise of new air
services and easier visa
processes (authorities have
hinted at ‘visas on arrival’
for South African passport
holders) will add to the
country’s appeal.
A brochure, entitled
Incredible India!, which
highlights the scope and
richness of Indian incentive
ideas, is available from India
Tourism’s Johannesburg
office. Furthermore, the
office’s director, Manas
Ranjan Pattanaik, is planning
a training programme to
enhance the travel trade’s
knowledge of India, which
he says tends to centre on
Mumbai and does not stretch
adequately beyond. Details
will be circulated soon.
Here are some creative
concepts to consider for
South African groups.
Elephant polo in Jaipur:
A city of ancient palaces
and forts, Jaipur is one of
only a few global locations
where elephant polo is
played. Matches start with
a procession with horses,
elephants and riders costumed
in traditional cavalry mode.
The match is followed by lunch
under tented cover and addons
such as Jeep safaris in
the desert or treasure hunts
in remote villages. The activity
can be done year-round and is
suitable for groups of 10 and
more.
Homestays:
These give visitors the
opportunity to interact with
Indian families, experiencing
their gracious hospitality,
cuisine and culture.
Residences are often
located in rural areas such
as plantations, rainforests
and tea estates, and come
with enticing names such as
Cardomom House and Tikli
Bottom.
Cruising:
The 2 500km Ganges is
the lifeblood of India and
visitors can experience all
its sights and sounds on a
14-night cruise on the
RV Bengal Pandaw, travelling
from Kolkata to Varanasi. It
sails past a wide variety of
temples and heritage sites.
The two-deck ship has 28 airconditioned
staterooms.
Another enticing cruise idea
is taking the MV Paramhamsa
through the Sunderbans, the
largest mangrove ecosystem
in the world and a Unesco
World Heritage Site.
Departing Kolkata, a threenight
cruise includes forest
walks and village tours.
The vessel has a total of
32 rooms with private
facilities.
Jeep safaris:
This involves driving across
some of the world’s highest
passes and through deep
gorges in the Western
Himalayas.
The spectacular scenery
makes for hairpin bends
and often-daunting terrain.
Trekking is also possible in
the area.
New Birchwood rates for corporates
A NEW rate structure
at Birchwood Hotels for
2014 allows corporates to
determine the room type
they wish to book.
According to Mbali
Mngomezulu, sales and
marketing director, the
Birchwood has historically
attracted a predominance
of clients from the
government sector. It now
hopes to encourage a
strong increase in support
from corporates. “We
have introduced a new
rate structure for 2014
that will give our corporate
clients an opportunity to
select the room types they
want for their delegates,”
she says. “In the past
we had a run-of-house
rate and allocation was
done on a first-come, firstserved
basis.”
The new rate structure
will enable the hotel
to treat its smaller
conference bookings with
more care, as clients
will be allocated specific
areas on the property,
such as the Birchwood
Business Class. The
Business Class area
has upgraded rooms,
WiFi access, a smaller
breakfast area as well as
secluded conferencing
areas.
The hotel recently
announced that its
Mangwanani Day Spa
was fully operational and
could offer customised
experiences for MICE
clientele. A popular option
for conference delegates
is the Nomad treatment
where therapists do
quick head and shoulder
massages at the meeting
venue.
The hotel further
features dedicated teambuilding
staff to tailor
activities for clients.
Mice in Morocco
Mauritian leisure group,
Beachcomber Hotels, has
taken its first step outside
the Indian Ocean region
with the opening of the new
Royal Palm Marrakesh in
Morocco.
The hotel and golf complex,
which overlooks the peaks
of the Atlas Mountains,
has 135 suites, an 18-hole
golf course, four fine dining
restaurants, a Spa by
Clarins, a conference centre
and a smaller meeting room.
Enid Maullin, group sales
executive, says: “We are
very excited about this new
hotel as, over the years,
Morocco has become a
sought-after and unique
destination for many
corporates who want a
different experience, in
particular the groups and
incentive market from SA.”
Beachcomber Tours SA
will notify the industry once
rates are finalised for the
Royal Palm Marrakesh.
WLH predicts a good year
THE coming year is looking
bright in terms of MICE
bookings for World Leisure
Holidays.
Michelle Hunter, MICE
and golf events manager
for WLH, says: “Going into
2014 our forward booking
book shows the highest
amount of confirmed
business we have held
for MICE at the beginning
of a year in the past five
years. The trend remains
interesting as there is
either a long lead time for
bookings or very last-minute
bookings.”
According to Michelle,
2013 was a tough year, with
corporates demanding more
value-adds for less money.
“We worked twice as hard
for a smaller reward,” she
says. Despite the tough
conditions, Mauritius saw
a flourishing MICE industry.
“The corporate incentive
that used to go farther afield
is migrating to Mauritius due
to the poor value of the rand
against the US dollar and
the euro,” she says, adding
that all-inclusive packages
have proved to be especially
popula.
Quatntim of the seas add novelty to cruising
WHEN Royal Caribbean
International’s Quantum
of the Seas launches later
this year it will introduce
innovative activities to the
popular incentive cruising
market.
Royal Caribbean enlisted
the advice of celebrity
experts in design and the
sports and fitness and
entertainment fields to
offer passengers first-time
cruising experiences.
New offerings include
RipCord by iFly, the first-ever
skydiving simulator at sea,
which gives passengers the
exhilaration of soaring in
an air machine in a safe,
controlled environment.
There’s also the North Star, a
capsule that gently ascends
over 100 metres above the
sea, offering breathtaking
360-degree views.
The ship will feature
venues that transform
from day to night,
fusing technology and
entertainment. One of them,
Two70°, presents magnificent
270-degree panoramic views
during the day, while by night,
it transforms into a centre
for performance art, light
shows and digital scenery.
Another, SeaPlex, offers
guests experiences such as
a circus school and flying
trapeze by day, as well as a
full-size regulation basketball
court. At night, it converts
to a bumper car and rollerskating
facility, with music
provided by a floating DJ
booth that hovers above the
activity.
Zimbabwe’s new hot conference destination!
CRESTA Hotels recently
added the refurbished
Cresta Sprayview in Victoria
Falls to its portfolio. It is
within walking distance
of the town, with its
restaurants and curio
markets, and is a short
10-minute walk to the Falls.
Accommodation includes
60 standard rooms,
three suites and two
family rooms. All rooms
are equipped with airconditioning.
Cresta Hotels now offers
hotels and conference
venues throughout
Zimbabwe, in Harare,
Bulawayo and Victoria Falls.
In Harare, the group
has three hotels – Cresta
Lodge, Cresta Jameson
and Cresta Oasis – each
with conference facilities
for small to medium-size
gatherings. The Cresta
Sango conference centre in
Harare recently celebrated
its first anniversary and, in
a short space of time, has
become a venue of choice
for large conferences,
exhibitions and a range
of social events. The
centre features five small
rooms, suitable for various
conference and banqueting
needs, as well as a large
conference hall that hosts
up to 1 000 people for
cocktail receptions.
Attractive group fares
AIR Namibia has
announced attractive
group booking fares for
corporates wanting to
explore Namibia as their
next MICE destination.
A spokesperson for
Air Namibia told TNW
that the country, only
a two-hour flight from
Johannesburg and
Cape Town, was the
ideal conferencing and
incentive destination for
South African businesses
and organisations.
She pointed out that
Namibia’s well-developed
infrastructure would suit
any meeting requirement
and many of the major
cities had multiple
venues to host events.
The largest conference
venue in Windhoek
is the Safari Court
Conference Centre, which
accommodates as many
as 1 000 delegates
theatre style.
WiFi for all Premier Hotels’ guests
PREMIER Hotels and Resorts
now has free WiFi at all its
hotels and venues. Guests
receive 250MB when they
check in.
“Our core focus is the
business traveller and as
the business market evolves
so do we. We aim to meet
all guest requirements and
are therefore constantly
upgrading and innovating
with both our in-room and
convention facilities,” says
Sigal Geva, Premier Hotels
and Resorts’ marketing
manager.
The group also manages
the East London International
Convention Centre and
recently made WiFi access
available free to all delegates
using the venue. All
conference goers have full
access to the WiFi service for
as long as they are inside the
building, which is located on
East London’s beachfront.
Waterberg resort expands conference facilities
LEGEND Golf & Safari Resort
in the Waterberg is to expand
its conference facilities with
the addition of four new
breakaway rooms, set to
open in the second quarter
of this year.
The new rooms will each
hold up to 50 clients and
be situated within walking
distance of the 500-seat
Queen of Sheba Conference
Centre, the 300-seat
Monomotapa Banqueting
Pavilion and the 200-seat
Sofala Conference Pavilion.
In keeping with the resort’s
feel, the rooms will be named
after a water element from
the Waterberg region. Also
opening in May is a new
Clubhouse to serve golfers.
Legend Golf & Safari
Resort is home to the unique
Signature Course where
each of the 18 holes has
been designed by a world
golfing legend. It features the
famous par-three Extreme
19th. Set high up on the
impressive Hanglip Mountain,
the hole is accessible only by
helicopter.
Tailor-made Blue Train routes
IT IS now possible for
corporates to tailormake
their own Blue
Train itinerary. The train
can be chartered for
strategic meetings,
product launches, VIP
cocktail parties, lunches,
dinners and even wedding
receptions, with a variety
of different routes as an
option.
Corporates can, for
example, opt for a golfing
or safari charter. The train
will then stop at or near
golf courses or game
lodges that are situated
along a rail route. They can
also design travel around
major South African events
such as the Vodacom
Durban July, the Nedbank
Golf Challenge in Sun
City or the J&B Met in
Cape Town, to name but
a few. The only proviso
is that travel takes place
on rail networks that are
compatible with The Blue
Train’s technology.
The train boasts luxury
cabins with en-suite
bathrooms, interactive
entertainment systems
and WiFi. It also has an air
cushion suspension system
that ensures a remarkably
smooth ride. A conference
car accommodates up to
22 delegates and is fully
equipped with audio-visual
and technical equipment
for a high-level business
meeting or a small
conference. Full catering
and bar facilities are
available on board.
