TRAVEL agents are battling
to find availability of
cheaper classes in
economy class in the SA
market due to the weak rand.
In a recent survey on TNW’s
sister publication, eTNW, 67%
of the 111 agents surveyed
said it was increasingly difficult
to find cheaper classes
available for purchase in SA.
“The SA market has a
minimal number of cheaper
seats,” said one agent, and for
this reason, agents are finding
ways of bypassing point of sale
and booking seats available in
other markets.
Rand sold tickets have
weaker value than tickets sold
in other markets with stronger
currencies, says David Pegg,
md of Sure Viva Travels.
“Airlines are trying to balance
tickets sold here with tickets
sold in other markets in order
to make a profit.”
André Schulz, Lufthansa gm
Southern Africa says: “In a
highly competitive environment
airlines have to carefully
manage stock allocations to
ensure a fair distribution to all
markets, while at the same
time ensuring that the route
remains favourable to run.”
Because of the weaker rand,
Virgin Atlantic has seen a
large increase in travel from
the UK to SA this year and an
overall decline in passengers
to the UK from South Africa,
says country manager SA, Liezl
Gericke. She says this has
impacted general availability
from South Africa to the UK
and onwards to the USA.
Of agents surveyed, 60%
said the availability of cheaper
classes was more problematic
for connecting flights via
Dubai, London (to the US) and
Paris (to the US).
Michelle Minnaar, manager,
Harvey World Travel Plettenberg
Bay, says, for example, flights
are wide open if you look
separately at availability from
Cape Town to Dubai and then
Dubai onwards. “However,
we are unable to book legs
separately and if you look for a
through flight from Cape Town
via Dubai connecting onwards,
then only the more expensive
economy-class seats are
available.”
The reason for this, says
David, is that airlines believe
they can make more money
selling these legs separately
than on a through ticket from
Johannesburg. “It’s all to do
with yield management.”
The bigger problem though,
he says, is when the cheaper
classes available in other
markets start in SA, as
travellers can then book
cheaper tickets than agents
can, who are restricted by
point of sale.
