Crisis support is the critical yardstick
HOW does everyone
come to the
party when crisis
management is called for?
TNW spoke to a selection of
retail brands to find out.
“It is in times like this that
we shine!” said a confident
Michelle Bullmore,
marketing manager and
recruitment – South Africa
of Travel Counsellors. To
start with, travel counsellors
do not have to fear ADMS.
“Our fares team check
tickets before they are
issued. Therefore, if there is
an ADM, it is not passed on
to the agent unless it is for
something like churning – a
GDS abuse – which would
be out of our control.”
Secondly, the likelihood
of travellers meeting with
trouble is lessened through
the thoroughness of Travel
Counsellors’ duty-of-care
efforts, where everything
from bombs to volcanoes to
bad weather is monitored.
Says Michelle: “Because
all our travel counsellors
work on the same system
around the world, we know
exactly where our customers
are. The minute there is a
problem, our duty-of-care
team will pull a report
and all counsellors will be
emailed, followed by regular
updates. A team will work
around the clock to rebook
customers.”
Further, the consortium
has a fraud team in place
to monitor its systems and
processes, ensuring no
loopholes.
Travel counsellors work
to a framework with
checkpoints that identify
possible fraud, which is
then investigated by the
fraud team. Counsellors
deal only with approved
suppliers to gain the benefit
of a financial protection
plan that insures clients
against supplier insolvency
or default.
When red flags go up, Club
Travel makes good use of
travel alerts to members
on various communication
platforms, says Jo Fraser,
Club Travel’s franchise
director.
The group has various
support teams looking after
its members – teams for
franchise, ticketing, ADM
and fares support, and
a Supplier Relationship
manager to deal with
airlines and land suppliers.
Disputes are investigated
and managed on agents’
behalf, says Jo, and they
are afforded training to
increase their awareness of
fraudulent activities.
“We have a quality control
division double checking
tickets once they have been
issued by our ticketing
department to minimise
ADMs. We are also part
of an international agency
network, Globalstar, which
supports and assists our
clients worldwide,” says Jo.
HWT provides mandatory
insurance to mitigate risks
within each branch. “Head
office is available to all
franchisees in terms of
support and advice at all
times, especially in times
of need,” says Bronwyn
Humphries, marketing
co-ordinator of Harvey World
Travel franchise support
team.
She points out that HWT,
as part of the BidTravel
Group, enjoys substantial
buying power, so much
Brand positioning leads the way in a complex market
Be cognisant of brand value and positioning
A thorough understanding and clear
vision of one’s brand positioning is
crucial in a market as complex as
travel. Using visuals with palm trees
on a beach won’t necessarily work
for the corporate market.
Too many travel business are
dependent on a shrinking slice of
the ‘exclusive’ pie. A wider target
market is possible in a country such
as ours, which has a growing middle
class there for the taking. If you are
targeting the South African traveller,
pay attention to the demographics,
and ensure your messages and
images will speak to the target
market.
Global travel is an aspiration,
particularly in the leisure market,
that reaches across all social
divides. Its shape, however,
must be adapted to fit. Some
markets may not want to see
churches, some markets are not
Eurocentric; they may prefer to
visit aspirational retail brands and
shopping festivals.
Being cognisant of a brand at
all times, however, does not mean
being inflexible, and taking stock
on a regular basis with a view
to adaptation of the brand, is a
tactic successful businesses have
followed.
Certain travel brands have arisen
in the last two decades – brands
with large chains of bricks and
mortar shops – that must be
appreciated for making travel more
accessible and widening a once
rather exclusive market. These
brands have benefited the industry
as a whole and their contribution
should not be underestimated.
See your own worth
The consolidation of the South
African retail travel industry in recent
years has seen the successful
integration of consortia into the
sector. There is, however, a tendency
to be all things to all customers;
some travel groups offer multiple
sales streams, including stores,
TMCs, ITCs and online travel outlets.
It does become a bit of a blur for
the clients, and there is a danger of
self-cannibalisation, as retail chains
may find themselves competing
against themselves.
The trade tends to fear global
online travel agencies like Expedia
and Google Travel, and are so
preoccupied with the threat that
they shoot themselves in the foot by
spending too much time obsessing
about the threat, rather than moving
on with their own businesses.
Worldwide industry leaders
repeatedly warn the retail trade to
gird its loins against the imminent
influence of Google Travel, for
example, yet the search engine’s
travel products have yet to impact
on the local market in the manner
predicted.
I recall how, over the years,
suppliers who chose to distribute
product through loyalty programmes
and other less traditional channels,
were initially scorned. On reflection,
while at the time they were seen as
disruptors, it is evident today that
in some way they have added to an
enlarging of
the market.
There’s space for all, and the
trade would do better to realise
its own worth than waste time on
unnecessary panic.
Maximise the chance to shine
Consumers, in particular the
public sector corporates, tend to
erode industry brands through
their tenders. Requests for
proposals (RFPs) are formulaic,
forcing all bidders into the same
suit, no matter how poor the fit.
Unfortunately, we’re not going to
change this.
However, site inspections
undertaken by these entities as
part of the bidding process give
agencies the chance to place
their brand centre stage. This is
where you can shine and have an
opportunity to showcase your brand
appropriately to the audience. The
accent here should be on relevance
– does the prospective client want
to see pretty posters and pictures,
or a well-functioning, business-like
office?
RFPs can also be good indicators
of your staff’s view of the brand’s
performance. When completing
an RFP, ask yourself how your
employees would likely respond to
the questions. If you answer with
honesty, it’s an acid test of how
your staff translate your brand.
Travelport tools track brand performance
In the last five years, Travelport
has undergone its own brand
change. In 2012 when the trade
knew it as Galileo, its acquisition
by Travelport signalled a new era.
Along with the new ownership
came an increased product choice
and a reinvigorated team.
Travelport’s expanded product
selection now includes tools that
offer trade customers a means of
gauging the success of their brand
and market positioning, using data
analytics.
The first, Travelport Competitive
Insights, assists the user in
understanding the extent of market
share, offering information on a
business’s passengers, partners
and competitors. Its analytics help
in shaping the future direction of
a business, reveal its competitive
advantages, and give insights on
customers, market preferences
and opportunities for expansion in
the current market.
The second, Travelport Business
Insights, delivers internal business
and external customers near
real-time access to actionable
intelligence insights from a vast
range of data sources. It offers
an undiluted profile base of
customers with great benefit to
marketing campaigns, gives a
view of forward bookings and
enables the business to take
action to counter slow periods.
These are opportunities to refine
and optimise operations and
demarcate the
go-to-market
approaches.
willing to assist in
emergencies.
Serendipity Worldwide
Group’s (SWG) support
extends to paying
ADMs on behalf of
members. The ADMs
are then debited to
members who can
pay off the fine over
a couple of months if
they have cash flow
issues.
eTravel “takes the
good with the bad
and certainly does all
possible to support
ITCs through difficult
times,” says Tammy
Hunt, operations
director. “We have a
number of cases where
eTravel has stepped
in to help, whether it
be carrying the cost or
part of the cost of an
error, or bad debt. There are other
instances where ITCs have been
liable for very large ADMs due to
an honest mistake and eTravel has
contributed toward the cost of the
ADM to assist the ITC, rather than
hurting them in the long run.”
With strong store set by fair
business, XL Travel analyses every
request for help that
comes to head office
and will go all out
to help members it
believes have been
unfairly treated.
“An example would
be receiving an ADM
for ‘churning’,” says
XL Travel ceo, Marco
Ciocchetti. “I feel very
strongly that ‘churning’,
whilst an expense for
the airlines, should not
be a reason for airlines
to raise ADMs.”
‘Churning’ occurs
when customers cancel
and rebook flights to
avoid booking expiry
limits and keep their
travel options open
as they make up their
minds on travel dates.
If the original agent
refuses to rebook
the flight for fear of
receiving an ADM, the
client may go to another agency to
book the exact same flights and
obtain the additional time.
Comments Marco: “Customers can
‘churn’ by going from one agency to
another, but cannot do so with one
agency alone. For as long as there is
no technology to prevent ‘churning’,
it is unfair to ADM agents.
When things go wrong
Crisis 1:
Fraudulent agent
eTravel has been hit by fraud a
couple of times in its 18-year history,
and on one occasion by an ITC with
an axe to grind. eTravel ensured that
the affected clients went on to travel
as booked, and rather than burning
bridges, gave the ITC a second
chance. A payment plan was set up
with the ITC to ensure the recovery
of funds.
Crisis 2:
Explosion abroad
In January 2016, when an explosion
occurred near Sultanahmet Square
in Istanbul, Travel Counsellors’
UK-based duty office sent an email
out to 1 500 travel counsellors
worldwide. Lynde Opperman, a travel
counsellor who had a client in the
city at the time, immediately sent a
message to check that she was all
right. Lynde’s message was the first
the client knew of the blast.
Lynde later received a call from
Travel Counsellors’ duty office team
in Manchester, checking if she was
aware of the situation. Lynde was
able to tell the office that she had
spoken to her client and all was well.
The client was, of course, impressed
with the concern shown for her
welfare and lauded her consultant
and Travel Counsellors on her
Facebook page.
Crisis 3:
Supplier absconds
Some of eTravel’s ITCs got caught
in the Gateway fraud trap in mid-
2015 and were liable for over
R100 000 in travel bookings paid
over to Gateway’s management, who
absconded with the funds.
eTravel head office saved the
day by picking up 50% of the cost
for every ITC. ITCs were allowed
to pay the balance off over a period
of time that was sustainable to
their business.”
How consortiums are adding value for members
WHEN it comes to servicing
their members, franchisees
and ITCs, upping the ante
is a continuous process for
retail travel brands.
Club Travel’s Jo Fraser
says the consortium
has a number of new
developments in this vein.
It is working on systems
that will enable ITCs to
issue their own tickets,
improving turnaround time.
In addition to an enhanced
front-, mid- and back-office
system simplifying reporting
and month-end accounting,
Club Travel is rolling out a
corporate and leisure selfbooking
tool.
An advanced intranet is
also in the offing, affording
members one platform
for communication and
interaction. It will contain
supplier contracts, yield
reports per agency, travel
and product alerts, product
builder, member profiles,
query management,
supplier database,
the live-chat function,
event management tool,
discussion forum, calendar
tool, user assessment, the
marketing library and user
intelligence reports. The
product will be available on
all mobile platforms.
For Harvey World Travel
branches, boosted
marketing assistance is
a service enhancement.
Says Bronwyn Humphries:
“Branches have access
not only to the national
marketing efforts of head
office, but marketing is
also developed for each
individual branch. This
makes it affordable and
effective to reach new
customers, whether the
branch is corporate- or
leisure-based.”
Once a quarter, HWT’s
marketing support and
head office franchise
support teams facilitate
a Franchise Advisory
Council meeting. Here it is
ascertained which areas
of franchisee service need
attention, be it technology,
training, supplier support or
additional marketing.
SWG is also at work
on improving its member
offering. Says group
operations director,
Dinesh Naidoo: “We are
currently working on our
own software to launch a
booking and accounting tool
that will come at a minimal
cost to members, but at
the same time enhance our
relationship and the value
that we can add to their
businesses.”
XL Travel is concentrating
on technology as a means
of augmenting value to
its members. Marco
Ciocchetti says the group
is constantly adapting to
a vastly changed travel
market by increasingly
accepting new technologies,
becoming more customercentric
and focusing
on services that meet
customer priorities.
“Our members are
increasingly embracing
new technologies and
providing a personalised
experience for the traveller
using these technologies,
rather than responding
defensively to online and
mobile technologies. They
are increasingly using
technology to market their
services via social media as
well as to access detailed
product and destination
information,” says Marco.
Travel Counsellors offers
a basket of tools that add
value to their ITCs, not least
technology, which includes
the Phenix packaging
system that enables
tailormade bookings and
increases commission.
“We make sure that
our TCs have access to
the best laptops – when
they get slow and need
to be replaced we do
this immediately. All
systems are backed up,
so they never lose data or
important information.” If
Travel Counsellors’ IT team
can’t fix a laptop remotely
and suggest a new machine
is in order, delivery takes
place the next day, fully
loaded with all systems
and programmes,” says
Michelle Bullmore.
She says the quality
of the consortium’s
commercial deals, supplier
relationships, financial
protection plan, marketing
and training, place their
ITCs on the top of their
game.
A new e-learning
programme, Coach, is now
available 24/7 and the
monthly TC on Tour sees
head office staff travelling
countrywide to undertake
face-to-face training. In
addition, counsellors have
access to a business
development executive who
consults with them on a
one-on-one basis.
Anew Hotels launches latest property
RECENTLY established
Anew Hotels has
launched its newest
property, the three-star
Anew Hotel Hluhluwe
& Safaris. The hotel,
formerly the Protea Hotel
Hluhluwe, is on the
outskirts of Hluhluwe in
Zululand.
Several soft
refurbishments have been
completed and further
developments include
an additional conference
room, two four-bed selfcatering
rondavels and a
signature five-star, selfcatering
thatched safari
lodge for six guests.
The lodge will be set
among fever trees and
indigenous vegetation and
will be aimed at families
and groups looking for a
true bush experience. The
lodge will come online
from October 1.
Contiki adds India itinerary
RESPONDING to millennial
travellers’ need for
an experience that is
immersive and unique,
Contiki has launched
the new ‘Southern
Spice’ trip in its 2018
Asia programme. High
demand for ‘Eternal India’,
which was launched in
2016, contributed to
the development of an
additional India itinerary.
Contiki has also refined
existing trips in the Asia
programme to meet
the requirements of
millennials.
The Asia product offers
central hotels, beachside
resorts and Special
Stays such as jungle tree
houses and floating raft
bungalows.
Why we switched to another franchise
“MOST consortiums apply
a one-size-fits-all approach
to their members and,
unfortunately, when the
nature of your business is
boutique and tailormade, that
philosophy doesn’t work.
“As a ‘smaller’ ITC, it has
happened that suppliers
have tried to pull the wool
over our eyes or conducted
themselves unethically. With
our previous consortium’s
philosophy we had no ‘big
guns’ behind us.
“The move to a new
consortium was the best
thing for us. The new chain
believes in transparency and
has given us a voice, enabling
us to raise concerns and
share information. We now
receive the support we need
when dealing with suppliers –
this, in turn, enables us to do
better for our customers.
“Changing consortiums is
never easy, especially when
it requires a change in GDS.
After we had undertaken
research and located the
tailored ITC model we
were looking for, we sent a
resignation letter through
to our former group. We
used the notice period to
contact suppliers, such
as the new GDS, to have
new contracts drawn up. If
planned meticulously – and
with the use of a million lists
– you can save yourself a lot
of stress. It’s important to
communicate with suppliers,
as information such as airline
agreements needs to be
loaded on to the GDS.
“There isn’t really a good
time to make a switch.
We picked a month that
historically was one of our
quieter months, to give us a
little breathing room should
any issues arise. As long
as you are patient, but firm
when it comes to the new
consortium and suppliers, the
switch can be seamless.
“Is the grass really greener
on the other side? Not always
– it’s vital you take your
time, do your research and
ensure you have done due
diligence. It’s our belief that
as far as product goes, most
consortiums offer exactly the
same supplier agreements
and contracts. Switching thus
comes down to a question of
ITC/franchise support, and
it is here that the offering
varies.
“For many, the run-of-the-mill
ITC model works perfectly,
but if you are offering an
extraordinary service or
product and require a level of
support that isn’t standard,
then it’s very important to
ask the right questions. If
the fit doesn’t feel right,
carry on looking. For us, the
move wasn’t without hiccups,
but the ability to chat to the
powers that be, and be heard,
makes all the difference.”
Guidelines for making
the change
yDon’t rush into anything!
Ask for contact details of
other consortium members
and don’t be shy to ask
them questions.
yDo your research – the
wrong consortium can
impact negatively on your
business, for example, if
they don’t have the right
deals in place.
yBe honest with both the
new consortium and the
old. If the problem at hand
is a contractual or service
issue, give the existing
consortium an opportunity
to assist before jumping
ship. If they are unable to
help, you won’t feel guilty
about moving. Be upfront
with the new consortium on
your requirements – from
airline contracts to service
standards. Make sure they
are prepared to commit to
these in your new contract –
if not, walk away.
yBe vocal, but don’t be
unreasonable – if you are
unhappy with a contract
term, say so, but be
reasonable with your
requests and expectations.
yDon’t burn any bridges!
Duma Travel acquires SBS Conferences
DUMA Travel has acquired
100% of SBS Conferences,
allowing the TMC to create
a one-stop shop for all
elements of travel for
associates.
SBS Conferences is a
100% black-owned, 50%
women-owned organiser of
conferences and events for
associations. It has over
30 years in the industry,
and can organise events for
specialised associations,
such as medical and
pharmaceutical.
Themba Mthombeni,
ceo of Duma Travel, says
the acquisition of SBS
Conferences is yet another
step in transforming the
future of the travel group.
“An association strategy can
only work when two friends
get together. I have known
Peter Aspinall, md of SBS
Conferences, for 15 years.
We have been in contact
and seen one another’s
businesses progress for all
these years, so I know there
will be excellent synergy
between Duma Travel and
SBS Conferences.”
In contrast, Peter
says teaming up with
Duma Travel is part of
his succession plan.
He expects the TMC to
sustain the success of SBS
Conferences by opening new
doors. “Duma Travel will
provide new opportunities,
creative freedom and far
bigger resources. That said,
SBS Conferences’ existing
clients should not expect
anything to change – these
relationships will simply be
transferred,” he explains.
All of Duma Travel’s
affiliated agents and travel
buyers are able to make
use of this new service,
which is already open for
booking.
Supplier-retailer relationships show shifts
SUPPLIERS believe there
are subtle shifts in the allimportant
supplier-retailer
relationship, although they
see these changes in
different spheres.
For Richard Addey,
Sabre’s country director,
South Africa, changes
are being wrought by
consumers’ ever-growing
demand for more
bespoke experiences and
personalisation. Airlines
and other travel suppliers
are answering this
demand with increasingly
complex distribution and
merchandising strategies.
On the retail side,
this means that travel
agents are having to
master personalisation
and position themselves
as expert advisers who
deliver tangible benefits to
their customers.
“While this increases
the pressure on individual
agents and the need for
powerful technology, this
market dynamic towards
more personalised
experiences presents
significant revenue
opportunities for all
players in the tourism
ecosystem,” says Richard.
In the hospitality sector,
Christine Swanepoel,
sales manager for the
Signature Lux hotel chain,
says the procurement
process of travel agencies
has changed. The supplieragent
relationship used
to be based on retailers
booking packages from a
brochure but now there are
strict vendor specifications
and often a lengthy
process to be listed as
a supplier. “Retail is
focusing more on building
custom packages for
individual clients. This
is opening space for a
large number of different
suppliers to have a share
of the business. Retail
chains also now have bulk
buying power.”
Despite the constantly
evolving dynamics in the
relationship between
supplier and retailer, it
remains interdependent,
says Robyn Christie,
ceo of Travelport SA.
“Each party is reliant on
the other to achieve its
ultimate goals and whilst
we all like to lay claim as
to who owns the customer,
the reality is that in
today’s market neither
can claim ownership.
At the end of the day,
whether we are operating
in junk status or not, very
often these relationships
succeed because they are
solid.”
Solid supplier-retailer
relationships are what
characterise the Mauritius
segment of the trade.
The most successful
Beachcomber Tours has
stuck by its policy of
eschewing direct bookings,
in an age where most
suppliers encourage
multiple distribution
channels, as Richard
indicates above. “The
retail industry trusts us
and has given us their
full support. We are
still sitting in a win-win
situation,” says gm, Terry
Munro. “We have therefore
not seen a drop in our
very high market share of
travel from South Africa
to Mauritius.”
Wouter Nel, sales and
marketing manager:
Southern Africa of Air
Mauritius, agrees.
“We have an excellent
relationship with the retail
trade and strive to always
deliver the very best
service, product and value
propositions for the retail
trade to comfortably sell
Air Mauritius with pride.”
The airline offers various
incentives during the year
to encourage the support
of the retail brands; its
‘agent and companion’
discounted, year-round
special is designed
to enable as many
consultants as possible
to experience the island
first-hand.
Some stakeholders
caution that there is a
point where the retail
trade can become too
dependent on suppliers
and the remuneration
earned from them, tending
to forget that the customer
should remain the primary
revenue source.
Flight Centre eyes DMCs in bid to own customer experience
Flight Centre eyes DMCs in bid
to own customer experienceIT IS eight years since the
global Flight Centre Travel
Group (FCTG) started
reaping the benefits of
supplying its own product,
through Flight Centre
Holidays.
The advantages include
increased control on
margins, rates and
allocations and, most
importantly, improved
in-destination experience
for FCTG’s customers,
according to Sue Garret,
gm product and marketing.
Now, the focus of the
group’s Global Travel
Experience Network
team is to seek out
opportunities to acquire
or start up destination
management companies
(DMCs), as FCTG aims
for further control
and enhancement of
the customer travel
experience.
Sue told TNW: “FCTG
recognised that through
its global buying power
it could create a product
database that would allow
for all its businesses
across the globe to
combine room-night
requirements in key
destinations to allow for
best rate, availability,
allocation and total margin
ownership.
“This also allows FCTG
to manage and own
customer data to ensure
delivery of the best travel
experience, from time of
enquiry to the customer’s
return home.”
The group’s Global
Product Network has a
base in a number of cities,
including Johannesburg,
and contracts for South
Africa as well as the
Indian Ocean Islands,
Europe, the USA, Asia,
Australia, New Zealand,
the South Pacific, Mexico
and the Caribbean.
Currently FCTG’s leisure
brands buy approximately
70% of land options
through Flight Centre
Holidays, which accesses
rates from the Global
Product Network. Through
requests for quotes and
pricing, FCTG identifies
trends, which are then
fed to the Global Product
Network team, influencing
its contracting for the
South African market.
“Currently, there are
several new destinations
that FCTG is looking to
contract,” says Sue.
While the group is
amassing product, it
nevertheless believes
there are niche and
specialist travel products
and services that are best
sourced from experts.
In South Africa, FCTG
product is currently only
available to its allied retail
outlets, but there are
countries in which it has
been made available to
travel agents outside the
group. “It is certainly an
opportunity that we will
look to explore in time,”
says Sue.
As FCTG makes inroads
toward a destination
management network, it
already owns a DMC in
Asia and recently bought a
company in Mexico. It has
also acquired the hotel
management rights of 18
hotels in Asia.
Enhancing supplier value
SUPPLIERS are constantly
seeking ways to enrich
value to the retail trade:
Signature Lux now
gives agents the option of
opening their own accounts
at hotel properties and
signing corporate clients
directly. This allows agents
from many different
branches to book at a
specific property at a
fixed rate, without having
to claim commission at a
property, relying instead on
management fees, says
Christine Swanepoel.
Agents are also saved the
long process of registering
each corporate account as
a vendor, working instead
with a central, agency-held
account. The channel is
open for agents to book
and bill back directly.
Sabre’s updated Red
Workspace is a platform
built around the core GDS
infrastructure to provide
more services and faster
value to customers.
“It is a content-rich
marketplace, but with new
decision support tools,
predictive data insights and
merchandising capabilities
that bring agents and
suppliers together to create
personalised experiences
for travellers,” says Richard
Addey. Insights can also be
extracted from the data to
pass on to customers.
The Decision Support Bar
gives consultants access
to market data for fare
trends, travel seasonality,
fare ranges, alternative
dates and airports. This
data, based on Sabre’s
marketplace intelligence
and delivered by Sabre
APIs, provides instant
access to information
without having to invoke
additional commands. “The
end result is a journey that
is created for the traveller
based on a wide range
of individual preferences
and variables – not just on
price,” says Richard.
The pitfalls of expanding outside South Africa
WITH a global network
comes the opportunity to
grow a TMC’s client base,
but expanding into Africa
and beyond comes with its
own set of challenges.
Themba Mthombeni, ceo
of Duma Travel, points out
that each market in Africa
is unique, coming with its
own challenges. Duma
recently entered into a
partnership with Uniglobe,
giving Duma the rights of
the brand in sub-Saharan
Africa.
Themba explains that
the landscape in Africa is
characterised by markets
at different stages of
development and, similarly,
each market’s travel
sector is at a different
stage of maturity. For
example, he says, Angola
and the DRC are not on
the BSP. Another challenge
is that in some markets it
is difficult to take money
out of the market once
you have invested into it.
Themba says this makes
it difficult for a company
to see the return on its
investment.
Duma will be leveraging
the Uniglobe brand to
expand its network into
Africa. Themba says in
Africa there is a strong
affinity with brands and
therefore the affiliation
with Uniglobe is a market
advantage.
But before a TMC can
think about expanding, it
needs to have established
itself locally, be financially
sound and have an
appetite for growth, says
Marco Cristofoli, md
of Harvey World Travel.
“You have to have a
track record, be a wellestablished
brand in South
Africa, and have the right
financial backing,” he
says.
HWT used to be an
Australian-owned franchise
but decided three years to
go it on its own and now
focuses on pan-African
growth. “We decided that
the brand was strong
enough to go alone in
South Africa and Pan
Africa. “We see South
Africa as fairly saturated
and will keep making
strategic acquisitions.”
Marco emphasises the
need for the right partners
before expanding. Like
Themba, he points out
that Africa is a difficult
market to enter. “It is
always easier to enter
into a joint venture with
an African partner,” he
says, adding that this
is the company’s future
strategy. He adds that the
company is eyeing growth
from Mauritius all the way
into North Africa. Marco
isn’t eyeing global growth
for now, but points out
that under the BidTravel
umbrella, there are a
number of brands with
a global presence. “We
win a lot of South African
accounts through a global
network,” he says.
Andrew Stark, md of
Flight Centre Travel Group
Africa, says it’s time for
a TMC to go global when
they are in a position
to win a multinational
account. He also
emphasises that, before
making the leap, the TMC
must be financially sound
and have a network. “If
you are a small mom and
pop travel agency in South
Africa, the chance of your
being successful in terms
of return on investment is
pretty slim these days. You
do need the global reach
and connectivity.” He
adds that any TMC going
global will need local and
international expertise.
The benefit of leveraging
a global network to secure
multinationals can be
business changing. Says
Andrew: “Over the last
year we won a flagship
corporate customer, Anglo
American and, size wise,
the company doubled the
size of FGM overnight.
Photocap: Club Travel Corporate gets Level 1 B-BBEE
Through growth in black and black women ownership, Club Travel Corporate is
now verified as a Level 1 contributor, according to the Tourism Sector QSE B-BBEE
Code. Club Travel Corporate, md, Wally Gaynor, says the group’s skills development,
enterprise and supplier development and socio-economic development are primarily
what have elevated the company to achieve this goal. All Club Travel Corporate’s socioeconomic
development and corporate social investment initiatives are managed and
delivered through Club Cares, a dedicated CSI vehicle. All staff contribute monthly to
Club Cares, the company matches the staff contribution, and this money is then added
to its total socio-economic development investment. The programme is managed by
a committee of staff members, who take responsibility for delivering on the strategy,
actively engaging with beneficiaries and reporting back into the business. Pictured
here, Wally and the Club Travel Corporate team celebrate their achievement.
SWG unveils new website for members
SERENDIPITY Worldwide
Group will launch a new
website, askswg.com, which
is dedicated to its members.
Dinesh Naidoo, group
operations director at SWG,
revealed as much at the
group’s annual conference
last month.
The new website will be
updated with supplier news,
updates and specials.
Dinesh explained that
suppliers will have access to
the website to upload their
content.
SWG has also uploaded
information on accreditation,
the POPI Act, and Asata
certificates. These are
available as downloadable
documents.
Agents will be able to do
their invoicing within the site
and book from the site using
a new booking system that
SWG will be launching.
Carlson Rezidor expands in Africa
Carlson Rezidor
expands in AfricaCARLSON Rezidor has
launched ‘Destination 2022’,
a five-year expansion drive to
grow its current portfolio from
78 to 120 hotels in Africa by
the end of 2022.
Andrew McLachlan, senior
vp of Business Development
Africa & Indian Ocean, says
the group will also introduce
a new brand into Africa early
next year. He did not elaborate,
except to say the brand
would be pitched between the
group’s Radisson Blu and Park
Inn products.
Meanwhile the group
opened its first alternativestyle
Radisson Red property
at the V&A Waterfront Silo
Precinct on September 12. It
plans to open 10 Radisson
Red hotels in Africa over the
next five years, including
in Johannesburg, Durban,
Maputo, Nairobi, Addis Ababa,
Luanda and Lagos.
In addition, three luxury
Quorvus Collection hotels are
under construction in Lagos,
Abuja and Kampala. Ten
Quorvus Collection properties
are planned for Africa,
including one in Johannesburg,
to be announced in the next
six months.
Andrew says Carlson
Rezidor’s accelerated growth
strategy in Africa has seen
the group sign a new deal
every 37 days and open a
hotel every 60 days over
the past two years. This has
accelerated to a new hotel
opening every 45 days this
year. All Carlson Rezidor’s 78
hotels and 16 500 rooms
in Africa operate under
management contracts. In
general, 13% more hotels have
been built in Africa over the
past 12 months, totalling 417
properties under development
at present, he says, 84% of
which are under management
contracts.
Andrew says 77% of Carlson
Rezidor’s Africa portfolio
consists of the market leader
Radisson Blu brand and it will
remain the largest, followed
by Park Inn, with Radisson
Red and Quorvus making up
15% of the mix. The plan is
to have Park Inns in at least
eight of the nine provincial
capitals in South Africa, as
well as multiple Park Inns in
numerous locations in Angola,
Mozambique, Tanzania, Kenya,
Ethiopia, Nigeria, Ghana and
Ivory Coast.
Positioned as a ‘lifestyle
select hotel aimed at
Millennial thinkers’, the new
Radisson Red in Cape Town
will be an entry-level four-star
hotel with a difference.
“The brand is all about
music, art, fashion and
being tech-savvy,” explains
Andrew. “The reception is an
art gallery with art rotated
from the neighbouring Zeitz
Museum of Contemporary Art
Africa and the focus will be
on showcasing South African
music and design talent.
“There will be no reception
desk as guests self-checkin
with an app on their
cellphones or tablet. They
also use the app for keyless
entry into their room, to watch
movies, or order room service,”
he says.
