Rand in freefall – don’t panic!

THE rand reached a new record low
of R17,91 to the dollar, on January
11, resulting in a new wave of alarm
from travellers.
“We must not panic. We will just need
to work harder to find the right deal at
the right price,” maintains Sean Hough,
ceo of Pentravel.
Although clients are clearly concerned,
agrees Wally Gaynor, md of Club Travel,
it’s important that travel agents don’t
feed into the negativity but put a positive
spin on the situation and that they learn
to think outside of the box and consider
options such as Airbnb, coach tours and
cruises.
He says the reality is that the US, the
UK, Europe and Australia have become
extremely expensive for South Africans.
However, travel agents could see this
as an opportunity to open their clients’
minds to new destinations, such as
India and Asia as well as countries
in South America, such as Brazil,
Guatemala and Nicaragua. “You may
pay more to get there but prices at the
destination are low,” he says.
“South-east Asia has long provided
South Africans with value for money
and will continue to do so. Thailand,
Myanmar and Cambodia are firmly on
the radar of South African travellers,”
adds Travelstart’s direct sales manager,
Jonty Medcalf. “There are still plenty of
good deals to be found if you look hard
enough and are prepared to travel last
minute,” he maintains.
Agents should also urge their clients
to pay for their holidays upfront and
in full to lock in the final price at
today’s exchange rate, advises Jonty.
“Considering the current volatility this
can save you a lot of money.”
“This is where the travel agents can
offer great advice by recommending that
clients book their holidays through tour
operators that offer guaranteed prices,”
agrees Beachcomber’s national sales
and marketing manager, Joanne Visagie.
She says Beachcomber doesn’t hedge
against the rand but sends payments
received from clients to suppliers to
avoid getting caught out.
In line with this, Trafalgar’s prices
are not hedged locally, says Theresa
Szejwallo, md of Trafalgar. “We are
absorbing the cost of this globally as
we don’t want SA travellers to lose
confidence in ‘yo-yo’ pricing,” she says.
 Fully inclusive holidays, while always
popular, have also started to gain
momentum after the rand freefall,
according to Theresa. She says
Trafalgar has now even introduced the
option of paying the travel director and
drivers upfront.
“Clients have much less to be
concerned about when the price of
every included service has been fixed.
Apart from the obvious inclusions
such as hotel accommodation and
transportation, think about how much
this is saving our guests on their meals,
sightseeing and even tipping,” she says.
Agents warn, however, that not all ‘allinclusive’
holidays offer equal benefits.
Franz Von Wielligh, gm of Flight
Specials, says some resorts or hotels
may market all-inclusive packages but
tend to exclude a lot of items.