COMMUNIQUE' - JUNE 2009 EDITION
In This Issue:
and more...
Flight Centre Stops Kulua Sales
FLIGHT Centre and kulula.com's relationship has come to an abrupt end with the low cost carrier's announcement that its flights would no longer be offered through the group's outlets nationwide. Flight Centre's management had alledgedly told kulula.com that it would no longer supoprt the airline and that an instruction of a complete "stop sell" would be communicated with immediate effect. "In the current trading environment we have been forced to critically evaluate our cost of sale and have unfortunately not been able to agree on a suitable remuneration model with Flight Centre," said Stuart Cochrane, kulula.com executive manager: sales and route development. Acting Flight Centre md, Janine Salame, said the public announcement of the "so-called" split was not a truthful reflection of the issue. "Our clients are our first priority and should they request fight bookings on kulua, Flight Centre would ensure that these were made possible." On May 21st, Singapore Airlines' (SQ) KrisFlyer members in Australia were warned that as a result of a "commercial impasse" with Flight Centre, SQ's airfares may not be available for purchase through FC retail outlets. The airline has confirmed that it was the result of a dispute over the "agency incentive agreement in the 20009/2010 financial year".
Good Bye Imperial, Hello Europcar
FROM May 31st, Imperial Car Rental officially changed its name to Europcar, turning the 30-year local brand into a global player. According to ceo, Dawn Nathan-Jones, while Europcar may not be as well known in South Africa as in other parts of the world, its brand credibility globally, and the benefits and efficiencies it has brought to the local operation, far outweigh any perceived risk. Dawn says one of the driving forces behind the move is the massive sporting events coming to South Africa over the next 18 months. The big changeover first became evident when the first Europcar branch was unveiled in March at OR Tambo International Airprot. Since then all 120 branches have received "facelifts" with the exception of Cape Town and Durban International Airports, which await ACSA's facilitation into new areas. Martin Lydall, opertions director, syas the injection of the Europcar way has turned their business into a "well-oiled machine on the inside" and this has led to many simplifications for customers. "We now have customer recognition functionality that codes and stores our customers' details on the system. This means one-off check-in at Europcar". What was once known as Speedline, Imperial's expedient "fly-through" for business people, is now named Ready and, at OR Tambo, the dedicated counter is placed alongside Europcar's car park. In addition, customers now have the option to offset their carbon emissions through a new programme where contributions will be paid to the UK Carbon Trust, which supports Plan Vivo, a eforestation project in South America and Africa.
How to Curb Total Travel Costs
WITH the drive to cut back costs, never before has defining the total expenditure on travel been more important. In the face of economic uncertainty, curbing costs is critical not just to ensure competitiveness, but for business survival. As travel is one of the largest controllable expenses within most companies, it goes to reason that significant cutbacks and scrutiny can be expected. But when is cheap, cheap? Never, says Jo Schutten of Cape Town based Unitravel. "There's no doubt that the biggest cost factor when it comes to top-level executives travelling is not the air ticket or the hotel, but rather the traveller himself. And taking this into account is extremely important when determining the cost of a trip." In a poll conducted by American T&E Research in August last year ahead of the financial crisis, it already showed that 45% of American travel managers said their companies had reduced travel volume. Travel impacts on the bottom line, but is freezing travel or reducing volumes optimum? No, says Michael MacNair, owner of American MacNair Travel Management. "There's a good reason shy travel is such a huge cost to begin with: It's an investment that ultimately generates revenue for an organisation. Companies should not be closing the door on potential revenue, but rather strika a balance between traveller objectives and desires as well as the company's needs and budgets." Schutten agrees and says when flying senior executives overseas, it may be more economical to fly them direct as opposed to opting for cheaper stopover flights. "Companies need to take various factors into consideration when determining the trip cost, including the price of the executive and the return on investment when he is performing at optimum level on arrival and signing a muti-million rand deal." According to Jim Weighell of Sure Travel, there is possibly no straight answer to determining how one defines the cost of a trip. "It depends on the culture of the company and where it places value - is it the commodity or the people? It is probably about finding balance. What cannot be argued is that cost containment is a priority right now." Economic pressure is severely impacting travel budgets, but ridding the process of all the extras and concentrating on the simple things will make a major difference. "Ensure tickets are of such a nature that if travellers finish early, tickets can be changed to allow for a flight home rather than having them sit in a hotel because the cheaper flight does not allow for changes. It's about smart choices rathen than cheap choices," says Schutten. MacNair says there are ways that companies can ensure their travel money is spent wisely. This includes estabishing a "travel squad", a small core group of necessary staff who represent the entire company, from exectuvie to operational level, who can act effectlively and quickly as well as review policiy. Schutten says often these costs may result in more hard cash bring paid out, but the ultimate return on investment and the dynamic determination of the trip cost is much less. "It's about getting your travellers to their destinations quickly, effectively and rested. Sometimes direct flights, a fast rental car or a better hotel is the more finanically viable option". Experts agree it's about taking a smart approach to travel and not just cutting the most obvious costs. Speaking in Spain earlier this year at the launch of a report into how the economic downturn was affecting corporate cutbacks, Antoine Medawar, md of Amadeus Hospitality Business Group, said economic pressure meant that most executives wanted to make business trips as productive as possible. "Forget gyms and restaurants, instead concentrate on efficient check-in/out and internet access. Good WiFi connectivity is now rated above any other extra. "There is a flight to trusted brands and the expectation of a common level of good service no matter where you are in the world."
A Major Us Carrier Will Fail - Virgin Boss Predicts
A major US carrier will fall victim to the recession, Virgin Atlantic founder Sir Richard Branson has warned. He described the current year as "the worst in the history of aviation" due to the economic downturn and a sudden rise in oil prices. He admitted that Virgin Atlantic would not repeat last year's group pre-tax profit performance of more than £60 million in 2009, saying the business travel sector was particularly difficult. "We are having to batten down the hatches but relatively we will dobetter than most," Sir Richard told TravelMole in advance of the airline's 25th anniversary on June 22. He said he remained "absolutely confident" that Virgin Atlantic would be around for its 50th anniversary provided compeition authorities protect if from potentially damaging actions such as the proposed effective merger of British Airways' and American Airlines' transactlantic operations. But Sir Richard described some big US airlines as being "weak" and predicted: "Within 12 months, I would not be surprised if a big American carrier didn't go". He added: "Oil prices have suddently doubled - that's a massive burden on the industry. In a recession you would normally have low oil prices; that is not the case this time." The weakening of the value of the dollar will also add extra pressure on airlines in the US, Sir Richard said. He described the quality of the US domestic airlines as being "extremely poor" and saw this an opportunity for offshoot Virgin America to become a "major force".
Loyalty Schemes Lose Appeal As Crunch Bites
FARES followed by convenient departure times and distance of airport from final destination are the three most important factors when choosing an airline, according to a new poll from Skyscanner. The cheap flight site's poll says customers were not swayed by customer loyalty programmes, brand building or improvements to the overall customer experience. Some 37% chose price as crucial while 15% said the best departure times were the deciding factor and the same amount said proximity of the arrival airport to the final destination informed their airline choice. Punctuality only scored 11% of the vote, sharing fourth place with safety record and age of fleet, implying that passengers either prioritise cost over getting there on time, or they don't perceive any great difference between the punctuality of budget airlines over more expensive carriers. Consumers showed little loyalty to brand with just 6% concerned about it, and are unswayed by added value initiatives such as airline schemems, which received 3%, and luxuries such as customer lounges, which received just 1% of the vote. Skyscanner co-founder and director Barry Smith said: "In these tough economic times, it's little surprise that price is the number one most important factor when it comes to booking a flight. All things being equal, consumers may be influenced by airline brand or reward schemes like air miles, but the first priority for passengers is the quality and value of the core product - a wellpriced flight that gets you where you want to go when you want to get there".
Beware Of Hotel Booking Scam
SOME crooks lift your hotel's logo from the website. They then construct a new "official" letterhead for the property you book with, with directors and al other correct info. On this letterhead they approach your debtors and advise them that the hotel's banking details have changed and that the new details are as follows
.. When the money is paid into the account by you, the unsuspecting customer, it is immediately swept and the thieves dissapear without a trace.
So what do we do?
- Make your creditors clerk aware of the scam so that they verify by telephone and fax any changes when a supplier notifies them of a change in banking details. Obviously if you pay into the wrong account then you lose the money.
- Ask your debtors clerk to watch the people that owe you money carefully so that they are not caught by this scam. Although it would not be your problem if the money is not paid into your account, it becomes a bureaucratic nightmare and a moral dilemma i.e. how much pressure can you put on someone who owes you money if they have recently been defrauded.
- Tell as many people as you can about this so that we are all more vigilant.
Winelands Winter Breakaway
In Stellenbosch at the 4* Spier Hotel
Self drive from R1919
Fly-in Ex Jnb/Dur R3339 (incl. airline levey of R130)
Fly-in Ex Plz R3079 (incl. airline levy of R141)
Fly in package includes:
- Return flights to Cape Town - 2 Days Avis Car Hire
- 2 Nights accommodation - Breakfast daily
- Travel Bag
- Quote Ref: 22207
- Valid 1 May - 30 September
- Fly-in packages valid for weekend stays only
- Prices are from a starting price per person sharing
Contact XL Turners Travel for conditions, rules and restrictions of travel.
Crazy U.S.A. Business Class Airfares
 |
 |
NEW YORK
Valid 19 May - 25 June 2009
From only R33,750 (taxes approx. R773)
|
LOS ANGELES
Valid 19 May - 25 June 2009
From only R49,000 (taxes approx. R773)
|
 |
 |
SAN FRANCISCO
Valid 19 May - 25 June 2009
From only R49,000 (taxes approx. R773)
|
HOUSTON
Valid 19 May - 25 June 2009
From only R42,000 (taxes approx. R760)
|
 |
|
TORONTO
Valid 19 May - 25 June 2009
From only R42,000 (taxes approx. R572)
|
|
Contact XL Turners Travel for conditions, rules and restrictions of travel.
June 2009 Lucky Draw Competition
Five minutes from the city centre of Durban, with wonderful views across a magnificent green belt stretching from the Umgeni River to the Indian Ocean. The Riverside Hotel reflects resort life in the city. One hundred and sixty-nine superbly appointed bedrooms, two restuarants and eight conference venues have been designed to our our guests a luxurious and relaxed environment. At the Spa time is left at the door and ane journey begins. Discover a wellness philosophy that has lifetime values. We believe in beauty through total wellness starting within and taking cognisance of body, mind and soul. Our passion is to ensure that your journey is a personalised one. We will tailor-make a package for you. Bridal spa, corporate packages, birthday parties, baby showers...
Visit www.threecities.co.za for more details.
This month, one lucky reader stands the chance to win the following wonderful prize:-
WEEKEND FOR TWO INCL. BREAKFAST
& A SPA VOUCHER
To enter our lucky draw competition, all you need to do is make any travel booking during June 2009 and email your name and company name to Rachelle: rachelles@turnergroup.co.za
Or, simply fill in your details below and click enter competition.
|
