Plunging rand hits travel to Europe
ANY traveller planning
a trip to Europe this
year is sure to feel
shell-shocked by the fall of
the rand and can expect
roughly 25% less in foreign
exchange compared with
last year. Things aren’t
set to improve either, with
analysts predicting that the
recent rand sell-off is part of
a wider disinvestment from
emerging markets and is
unlikely to reverse any time
soon.
As a result of the dire
rate of exchange (ROE),
airlines in South Africa have
seen demand for Western
Europe slowly dwindle. Axel
Simon, director of Lufthansa
and SWISS for Southern
Africa, explains: “In the
price-sensitive economyclass
segment we see a
clear decline in demand for
tickets. Although we are
offering competitive fares,
accommodation and other
costs that make up a trip
have remained expensive
due to the rand exchange
rate.” Axel says he does
not expect market growth to
Europe at this stage.
South African Airways is
slightly more optimistic
about 2014, although the
airline has also felt the
effects of the currency
woes. SAA spokesperson,
Tlali Tlali, explains:
“Demand on the London
route has decreased owing
to the weakening rand and
the visa cost. However,
travel should remain largely
consistent and possible
growth prospects are
expected to be between 2%
and 3% in 2014.”
For tour operators, the
ROE is a top concern for
2014, although some are
yet to see a decline in
demand. Inge Dobihal,
owner of Austria Connection,
has seen some “bizarre”
trends. “While some people
want to travel this year in
case they can no longer
afford it next year, others
change to destinations
closer to home, or to
cheaper destinations in the
Far East, or postpone until
next year. The majority of
travellers who have booked
already prefer to pay now for
this year’s trip to avoid more
costs should the rand slide
further.”
Inge says it is impossible
to make any predictions
for the year ahead as the
economy is so volatile.
“We are seeing a wave of
bookings at the moment,
but this might ebb away if
the rand does not recover,
but then again it might not.
With the present economic
and political instability it
is impossible to anticipate
what will happen over the
next few months.”
Mark Buck, md United
Europe, says that although
enquiries and bookings
have increased for the
moment, he believes that
the ROE will affect long-term
prospects.
Holiday Tours has also
not seen a decline in
queries for Western Europe
yet, according to Megan
D’Arcy, Comair Travel
product manager for Europe.
However, as it is still the
beginning of the Europe
booking season, it is hard
to predict what effect the
ROE will have on conversion
rates. “Selling any
international destination has
become more challenging
due to the weakness of the
rand, especially against the
euro, US dollar or poundbased
rates. The weak rand
also affects some airlines’
fuel surcharges, which
impacts package prices
too,” she says.
Holiday Tours has
observed a clear change
of booking pattern as a
result of the ROE. Megan
says: “It would seem that
passengers are opting not
to pre-book any sightseeing
or excursions to contain
costs, and are adopting a
‘wait and see when we get
there’ approach regarding
these activities and their
costs.” Despite the cost,
Europe will always remain
popular for South African
travellers thanks to the
diversity of its history,
culture, gastronomy and
scenery, according to
Megan. “Nowhere else can
you experience so much
in such a relatively small
area. World-class transport
connections within Europe
make all these experiences
relatively reachable for
anyone travelling in this
area.
How to make your clients’ money go further
DESPITE the crippling
ROE, travellers can still
get extremely good value
for money in Western
Europe. TNW spoke to
industry players for their
top tips on stretching
rands while vacationing in
Europe.
1. Pre-book
excursions
Passengers should prebook
excursions, as tour
operators are usually
able to offer better deals
with suppliers than the
passenger will source at
their destination, advises
Megan D’Arcy.
Purchasing transport and
excursion combo tickets,
for example London’s
Citypass combined with
the Oyster card, can also
help stretch travellers’
rands. “While it increases
the package price initially,
the total savings on the
ground in the destination
far outweigh what you pay
for these passes upfront,”
Megan says.
Terri Wright, World Travel
manager, also stresses the
importance of pre-booking.
“During the European high
season – July and August
– trains are often sold out
very quickly. It is therefore
highly recommended that
rail tickets are purchased
and reserved well in
advance, even prior to
departing South Africa
to obtain lowest fares.”
He adds that pre-booking
also secures the most
favourable departure
times, avoids tedious
queuing at the station
and, in some cases, the
language barrier.
Terri points out that
many rail passes include
discounted entrance fees
to tourist attractions and
other forms of public
transportation, such as the
Swiss Travel Pass.
2. Opt for a coach
tour
Coach touring, while
appearing expensive
on paper, offers great
value-adds in the form
of included meals and
excursions, explains
Megan.
She says it would be
better to pay for as
much as possible in
rands before departure
than directly to service
providers on the ground in
euros or pounds.
Trafalgar’s managing
director, Theresa Szejwallo,
agrees that guided
holidays will continue
to add amazing value
because of their inclusive
nature.
3. Cruising the seas
Cruising is another
excellent way of getting
more ‘bang for your
buck’. Tania Lospoto,
travel manager for
Travel Connections, says
increasing numbers of
passengers are opting for
Mediterranean cruises,
thanks to the great value
for money, with all meals,
and very often drinks,
included. “We believe a
value-for-money holiday
in Europe is a cruise
because there are some
wonderful destinations
to choose from, such
as the Baltic, western
Mediterranean, Greek
Islands, Croatia and
Turkey.”
Tracey Krog, commercial
manager at Cruises
International, agrees:
“With global economies
attempting to bounce
back, cruise lines have
been prompted to market
more value-added services
to their products. For
example, children under
the age of 12 sail free on
selected European and
Caribbean sailings (when
sharing a stateroom
with two full paying
adults). Other offers
include on-board credits,
promotions on certain
sailings, discounted
deposits and extension
of option dates, making
it less of a nancial risk
for the client. In fact if
ever there was a time to
cruise, it is now, as the
value of a fully-inclusive
cruise holiday outweighs
a similar land-based
experience.”
According to Tracey,
2014 could be a tough
year but, as cruise lines
are continuously coming
up with special pricing
and value added offers,
cruising is cheaper and
more attractive than it
has been for the last few
years.
4. Timing is of the
essence
“Two of the strongest
tips I can provide are
to book well ahead and
to consider shoulder
season periods,” says
Megan. “Don’t hang on
for last-minute deals but
rather take advantage
of emptier hotels and
airlines by booking peak
periods well in advance,
and lower rates on dates
immediately before and
after the traditional
peak European summer
period.”
Mark Buck agrees:
“There are many bargains
to be had in many
countries. Aside from
obvious short cuts, I
would advise travellers
to look at the month of
travel, for example a trip
to Italy in August will
be around half of the
price of the same trip in
September.”
5. Opt for three-star
instead of four-star
According to Inge Dobihal,
clients are often reluctant
to shift from a four-star to
a three-star hotel. “I often
wonder whether this is
not due to the perception
of travel agents who
think that their clients
won’t stay in three-star
hotels.” According to Inge,
travel agents should be
aware that in all Austria
Connection’s destinations,
three-star hotels are of an
acceptable standard and
good value.
Photocap: Cheers for Trafalgar!
The Travel Corporation’s Ernest Pachonick and Nicola Louw, both area sales
managers in Gauteng, are thrilled about the tour operator’s introduction of new
itineraries for 2014. An eight-day Swiss Delight itinerary visits St Gallen and St Moritz,
Mount Pilatus and Zurich, while an 11-day Northern Spain trip explores Bilbao and
rural spots, Covadonga and the Picos de Europa National Park. Travellers stay in a
Renaissance palace where Napoleon’s troops once rested.
Lufthansa offers affordable connections to Spain
SPAIN and Portugal are
popular destinations for South
African travellers but the
complicated and expensive
ight connections to these
countries can be a deterrent,
according to travel agents.
During a recent survey
conducted by TNW, travel
agents mentioned that
the demand for Spain and
Portugal was currently
soaring. One agent said:
“Portugal and Spain are
big holiday destinations but
we can’t get people there
with fewer than two or three
connections, or via London,
needing an extra visa. It’s just
crazy. Bring on direct ights to
Portugal and Spain and we’ll
bring the numbers into those
countries.”
Lufthansa is offering
excellent connections to
Spain and Portugal via its
hubs in Germany, according
to Axel Simon, director
Lufthansa and SWISS for
Southern Africa. “Both
Lufthansa and SWISS have
excellent connections to
Spain and Portugal. We have
one of the best networks
within Europe and we have
very competitive fares. Often
these end fares are, in fact,
cheaper than those to the
connection hub.
Book it!
Encore Cruises is offering a promotional fare of US$7 099pp (R78 822) for its Northern Europe cruise,
which departs on June 28 from Stockholm. The cruise will take passengers on a 12-day voyage on the
Seven Seas Voyager, visiting Stockholm, Tallinn (Estonia), St Petersburg (Russia), Helsinki (Finland),
Marienhamn (Finland), Klaipeda (Lithuania), Karlskrona (Sweden), Copenhagen (Denmark), and
Kristiansand and Oslo (Norway). The cruise fares include accommodation, unlimited shore excursions
(subject to availability on a rst-come, rst-served basis), all beverages, in-suite mini bar, four gourmet
restaurants, complimentary 24-hour room service and all staff gratuities”
Is it a dump or dream hotel? Europe’s star rating questioned
HOTEL star ratings are often
not consistent throughout
European cities, say South
African travel agents. During
a recent survey conducted
by TNW, agents pointed
out that often four-star
hotels in Europe were a
disappointment for South
African travellers as the star
rating was not equivalent to
a local four-star hotel.
The standard of
accommodation in Europe
does vary, says Tania
Lospoto. She adds, however,
that experienced consultants,
who are well travelled,
often know what to offer.
Travel Connections also
relies heavily on feedback
of customers. “Location is
important to avoid expensive
taxi rides and we shy away
from using hotel booking
websites where you think
you’re getting a great deal
but end up in a broom
cupboard.”
Tlali Tlali says despite
the discrepancies, there
are various regulatory
mechanisms that can be
canvassed to establish the
credentials of a hotel in
Europe. “It is recommended
that reputable tour operators
or travel agencies be
contracted should a traveller
wish to have condence in
service provision.”
Megan d’Arcy says Holiday
Tours vets all the hotels it
sells in an effort to weed
out the properties of a lower
standard. She says travel
agents have an important
role to play and need to
check that the suggested
properties are in line with
the requirements of their
clients. Agents should qualify
the passenger and get as
much detail about their
preferences as possible. For
example, do they require a
hotel with a lift, or are they
happy to look at hotels with
stairs-only options? Would
they mind if breakfast was
served in-room? Do they
need a property near a train
station?
Megan says if a client is
looking for a stock-standard
Hyatt or Mercure near a city
centre, it would be best not
to quote them on a boutique
apartment-style hotel which
is situated on the second
oor of a historic building
near the train station – even
if the latter has received
fantastic reviews. “Agents
should always double check
hotel suggestions with their
passengers, and look at
both the hotel’s website as
well as online reviews of the
property to get a feel of the
accommodation.”
“At the end of the day,
unless you have seen a hotel
rst hand, or are dealing
with someone who has seen
the hotel rst hand, you will
always be guessing,” adds
Mark Buck. He says that
although accommodation in
Europe is denitely not at the
same standard as in South
Africa, not all of it is bad.
Rand price guarantee continues this year
IN THIS difcult economic
climate, which has seen
demand for international
travel drop, Trafalgar is
offering a much-needed
rand price guarantee.
Trafalgar md, Theresa
Szejwallo, explains: “We
all know that the rand
is taking a turn for the
worse and that the repo
rate has just recently
increased but we continue
to honour our rand price
guarantee, giving clients
peace of mind that their
2014 holiday will not be
subjected to the effects of
the crushing exchange rate
free-fall.
Did you know?
Cruises International is marketing short seven-night itineraries on its
Celebrity Cruises and Crystal Cruises programmes.
Paris is for families
THOMPSONS is offering
an unbeatable special for
a family trip to Paris from
R19 141pps for ve nights
at the three-star Paris
Bastille Hotel. The package
price includes ights,
taxes, hotel transfers
and accommodation with
breakfast.
John Ridler, spokesperson
for Cullinan Outbound
Tourism, says: “Paris is
widely associated with
romance but the city has
something for everyone.
Even families are well
catered for with many
museums and places of
interest for kids. While
many Paris hotels are
compact and charming
there are newer properties
that cater for families
with small children. The
city is famous for its
wide, shady boulevards,
iconic sights like the Eiffel
Tower, museums, fabulous
shopping and, of course,
French cuisine in cosy
bistros. Try speaking a few
words of ‘broken’ French
and you will immediately
receive a friendly response
– it works every time.
Book it!
World Travel is offering promotions to South African travellers on a wide range of its rail passes. On the
German Rail Pass travellers receive a discount of 20% on the 10-day pass and 10% on the ve-day pass
if purchased between February 1 and April 30 for travel up to May 31. The French Pass is available at a
20% discount between February 12 and March 26. The pass must be validated within six months of date
of issue. Travellers will receive free extra days of travel when they purchase a Eurail Global Pass between
February 1 and March 31. A 15-day pass will offer two additional free days; a pass for 22 days will offer
three additional free days and a one-month pass offers ve extra days”
