SAA’s decision to
switch to an origin and
destination (or point-ofsale
availability) system has
impacted local travel agents,
some of whom say it favours
agents outside South Africa.
Towards the end of last
year SAA began rolling out
the system that shows
different availability for
certain classes in different
markets. According to Wally
Gaynor, md of Club Travel,
the result is that online
travel agencies such as
Expedia, with headquarters
in other countries, have
access to cheaper fares
than an agent sitting in
South Africa.
Wally says clients who
compare the quotes they
receive from travel agents
with what they nd online
have come back to question
the difference in price,
which can be up to R3 000.
Normally, Club Travel can
compete with what is online
but in this situation the
playing elds are no longer
level, he says.
SAA spokesperson, Tlali
Tlali, says SAA was one of
the few remaining network
airlines not to implement
an origin and destination
revenue management
system. The reason for
the change, he says, is “to
yield the highest return by
fare class system-wide and
reect inventory based on
this premise”.
Tlali says: “Stronger
currencies provide a greater
yield by fare type than the
local currency on dened
routes. This inuences
availability and allows
access to higher yielding
markets.”
Jonathan Gerber, director
of TAG, says the change
has led to availability
issues. He says there has
been a dramatic reduction
in inventory, which has
had a substantial impact
on business and in some
instances resulted in agents
looking to other carriers for
cheaper fares.
According to Tlali, the
impact has been quantied
and the outcome is that
higher yielding markets
would have greater access
to inventory owing to
currency supremacy. But,
he adds: “For the UK route
in particular the reference
fares by class has been
lowered of late to allow for
more access within South
Africa and the UK, based
on demand proles and
travel patterns.” Tlali says
similar options are being
developed on other key
routes to achieve a higher
accessibility for the home
market, based on dened
variables.
Tammy Hunt, operations
director of eTravel, says
although the initial impact
is negative, the trade and/
or traveller will adapt to
the changes. “I do believe
there will be a negative
impact from the coastal
market until all glitches are
resolved as there currently
are some that SAA needs to
work through,” she says.
