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Communique' - September 2010 Edition
In This Issue:
and more...
COMAIR WELCOMES DECISION TO OPEN BID FOR DURBAN INTERNATIONAL AIRPORT
Comair has welcomed the Minister of the Department of Transport, Sibusiso Ndebele's, recent announcement that it will open bids for the old Durban International Airport (DIA) to all interested parties. Gidon Novick, joint Comair ceo, says the announcement is good news and that the tender documentation once it is available. Should the airline decide to bid, they will get involved with one or more partners in aviation. However, Gideon stresses that he hopes the tender process will not restrict aviation companies from bidding, as this will not be fair in terms of competition laws. When Comair first expressed interest in the airport in April, Acsa was adamant that the old DIA was to be de-commissioned after the World Cup. But in his statement, the minister confirmed that although the Department of Transport will remain responsible for the land, all interested parties - bar none - will be able to submit proposals. A steering committee comprising the Department of Transport, the Province of KwaZulu Natal, Acsa, and the city of e Thekwini, among others, will advise on the best options of use for the land and to determine the process that will be followed in the disposal of it. The minister said that it is the department's intention that the process be completed in the shortest time possible in the best interest of all bidders and the country as a whole. Further announcements regarding the subject are expected over the coming weeks.
What you had to say:
Most travel agents agree that the old DIA should be used as a second option for clients travelling to the south of Durban. One agent suggests using the Durban airport as a second airport for domestic flights. "Give the public the choice to choose Durban or King Shaka, that way Acsa still has, control and can see if its profitable to have two towers going and two airports running." Janita Gopal of Thompsons Holidays agrees: "I would like it if the old airport remains a domestic airport as lots of money was spent on the parking lot and small refurbishments. There is definitely a need for it. Even the Airforce is based there, where would they go? The structure has been established and facilities would just need to be refreshed." Another agent says the Department of Transport should let Comair buy the property and turn it into a "Lanseria" for Durban. Meanwhile, an agent who wishes to remain anonymous, believes the department's decision to open bids proves there is no need for the new King Shaka Airport "The truth is finally out. There was no plan for the old airport, and apart from wanting a longer runway to accommodate aircraft that will never fly into Durban, there was no reason to waste tax payers money in contructing what is nothing more than an attractive building with absolutely no benefits. No travellators, no viewing deck, miles to walk, outrageously expensive parking, but yes, a beautiful building. My only suggestion would be that the powers-that-be learn from this stupidity.
ACSA TRAFFIC DOWN, PROFITS UP
Passenger numbers departing from South African airports experienced declines for the second year in a row. At its financial press briefing, ACSA said passenger and aircraft movements at its airports indicated a marked decline in numbers for the financial year under review, compared with the previous year's performance. Attributing this to the global economic recession, Monhla Hlahla, ACSA managing director, said it was therefore commendable that the group managed to realise a 12% increase in revenues to R3.5bn, against the previous year's R3.2bn. Passenger numbers declined by 1,7%, domestic traffic contracted by 2,1% and international traffic by 0,9%. Aircraft, landings declined by 1,7%. However, ACSA said that the strong low cost market continued its momentum, resulting in growth of 3%, while the full service carrier market declined by 4%. An upward trend was recorded during the latter part of the financial year, reflecting positive growth of 4,2% during the last quarter's performance. Domestic passenger traffic comprised 70% of the segmented market and regional 3%. Top domestic and international routes showed a general performance compared with the previous year. The Johannesburg-Durban route declined to 2,71m, a drop of 5%, while the Cape Town-Durban route grew by 3,6% to 0,92m passengers. On the international side, the main Johannesburg-London route declined by 2,6% to 0,89m passengers, while the previously buoyant Johannesburg-Dubai route dropped 2,1% to 0,55m passengers.
WORLD CUP DESTROYS BUSINESS
A far cry from the backslapping that has accompanied South Africa's successful hosting of the FIFA World Cup is the reality of the destroyed business and empty hotel rooms that are left in its wake. ReservHotel International, a Cape Town based global marketing and service company for hotels that provides 650 travel agents worldwide with hotel inventory through Galileo and Amadeus, had its business eroded when FIFA accommodation broker Match took over 90% of its room inventory. "They cut me out, they took my inventory and basically destroyed my business," says md, Vernon Kirsten, a South African tourism industry stalwart who pioneered Galileo in this market. His company's turnover plummeted by up to 83% in June and July and by August has still not recovered. When Match began releasing rooms in phases before the event, these were located in difficult-to-sell outlying areas, while high-value rooms in the city were only released 30 days before kick-off, mostly too late to sell. With only eight matches in Cape Town, Vernon claims the World Cup was disappointing for hotels, disastrous for guesthouses and brought no return on investment for people who rented out their homes. "I have the entire Seeff (Estate agency) inventory on my system. Not one house was rented out." Vernon is tackling FIFA on its prior promises that the World Cup would boost local business and is demanding compensation for loss of business. He has copied the demand to Western Cape deputy director-general, Dr Laurine Platzky, who was responsible for the co-ordinating policy and implementation of the province's World Cup programme. "FIFA didn't help us at all," he says, "We should have had a back-up reservation system." Meanwhile, hoteliers have slammed Match for not earlier communicating its failure to sell signed-up hotel inventory. Newmark Hotels operations director, Andy Nold, says Match gave back 99,2% of the Ambassador Hotel's inventory on 30 days before kick-off. Luckily, the group had a Plan B and managed to fill 70% of the hotel for the tournament, albeit at lower rates. Six weeks before kick-off, Match also returned unsold 80% of the rooms in Protea's new 15 on Orange Hotel. "Match only kept 30 rooms over three nights," says gm, Douglas Allen. The hotel did manage to sell 110 rooms for seven nights to Algerian soccer fans and, like most other hotels in the CBD, was full over match days. The five-star Coral International Cape Town was not contracted to Match and managed an average 40% occupancy rate for the duration of the World Cup, not bad for a hotel, says pr and communications manager, Gina Meintjies. But with the tournament over, the hotel business has gone quiet in Cape Town. Most hotels reported no corporate business during the first two weeks after the event. At Coral International corporate business is only starting to trickle back in, while international leisure occupancies at the Winchester Mansions are worse than in winter last year, reports md, Nils Heckscher. "Many international tourists will not come this year because of the World Cup and perceptions that rates are higher as a result. The economic crisis and the stronger rand are also playing a role." Despite this and despite the blow to his business, Vernon is putting on a brave face and hoping for a bumper summer season and an even better 2011, thanks to the publicity received during the World Cup. "The spin-off that will happen now hopefully will make it all worth it," he says.
DINERS NOW ASSISTS WITH KULULA RECONCILATION
Diners Club is now able to provide its corporate clients and their travel agents with additional information to assist with the reconciliation of all kulula.com transactions on Diners Club statements. "At Diners Club we endeavour to provide as much information as possible on our customer statements to assist with reconciling. We've been able to provide this information on all Low Cost Carriers except kulula.com, which is why this is really important information to share," says Diners Club head of corporate division, Nadine Clarke. Both the Diners Club statement and Diners Club Advantage will now reflect the following information: kulula.com booking reference number, full name of traveller as per booking, date of transaction and amount. "Previous information was limited to the date of transaction and amount only. By providing the traveller's name and kulua.com booking reference number, it will be very easy to reconcile per transaction charged."
TRAVEL INTO AFRICA CONTINUES TO BOOM
With travel into Africa growing annually, South African corporates are becoming increasingly aware of the challenges posed. Natasha Tippel looks at advancements in air access, safety and security as well as new developments on the continent. Airlines, accommodation providers and travel agents are all saying the same thing - travel into Africa continues to grow steadily, despite 2009's economic downturn. "Corporate travel has dramatically increased into the region and is definitely not a low-yield market," says Michell Fourie, sales and marketing manager of Aviareps (representing Air Namibia and Afriqiyah Airlines). SA marketing executive of Air Malawi, Felie Mkandawire, agrees: "There's been a steady increase in travel into Africa, especially business travel, as more SA companies open branches in the rest of Africa." Sales and marketing manager of Serena Hotels, Lodges and Resorts for South Africa, Karin Sieberhagen, agrees: "Travel into Rwanda and Uganda has picked up and did not slow down even during the downturn". These bookings, she says, came primarily from the cell phone and banking sector. Ceo on Uniglobe Travel Sub-Saharan Africa, Mike Gray, believes Africa's resilience during the downturn is due to a number of reasons. "Africa is largely a cash society as opposed to a credit society (like the West) and has therefore escaped the excesses of the credit crunch caused by maverick banking." He also notes that Africa is coming off a low base and finding a valuable role as a commodity provider to the engine houses of the globe, India and China.
BA TO INTRODUCE SECOND DEAILY FLIGHT TO CAPE TOWN
British Airways will launch a second daily flight between Heathrow and Cape Town from November to capitalize on rising demand. BA Commercial Manager in South Africa, Sue Botes, said that Cape Town's popularity as a holiday destination, particularly among Britons, had grown steadily during the year, in addition to the World Cup business. Tourism officials, meanwhile, are calling on suppliers to build on tourists' heightened interest in South Africa. "We have the capacity, we have great offerings, and we have exceptional attractions. What we must make sure of now is that we live up to our visitor's expectations and provide them with experiences that they will not forget," urged Cape Town Tourism Chief Executive Officer, Mariette du Toit-Helmbold.
THE GAUTRAIN - WHAT YOU NEED TO KNOW
The Gautrain, which launched operations in early June, is being hailed a great success, with commuters praising the speed and efficiency of the new state-of-the-art rapid rail network, comparing it with the likes of the London Underground and other world-class public transport systems. By now, most people know the basics, such as the Gautrain services link stations at Sandton, Marlboro, Rhodesfield and OR Tambo International Airport; ticket prices for a single train trip to the airport are R100; commuters can access all services by means of a contactless smart card - the Gautrain Gold Card; etc. But h ere are a few tips about using the Gautrain that you might not yet know:
- You can only travel to the OR Tambo airport station from the Sandton station. This means, if you are travelling from any of the other stations, such as Marlboro, you will have to take a commuter service to Sandton station and board another carriage to the airport. Passengers can disembark at other stations from this carriage but cannot board.
- You cannot cheat the system. Your Gautrain Gold Card registers whether or not you have clocked in and clocked out of the station. If the card picks up that you have not scanned in or out you will be penalised a fee.
- The same goes for parking. If you park at a Gautrain station and do not board the train, your card will pick this up and you'll be charged R97.50 for parking instead of R29 at the Sandton Station or R9.50 at any of the other stations for the first 24 hours.
- Each Gautrain car park has a drop-off zone, which is free of charge for the first 15 minutes.
- The train services will operate from Monday to Sunday between 05h30 and 20h30. Trains will be available every 12 minutes during peak times (05h30 to 08h30 and 16h00 to 19h00) and every 20 minutes during off-peak times. On weekends the train service will be available every 30 minutes.
- Bus feeder services only run during the week and not on weekends.
- Commuters who combine a bus trip or parking usage with a train journey will get reduced rates on the bus and parking components. Special weekly and monthly packages are also available for regular users.
- You can purchase your Gautrain Gold Card or load money on to the card at selected retail outlets in the vicinity of the bus routes.
- Customers using more than one Gautrain service within a single journey will automatically enjoy a discounted fare.
Future developments include a link between Pretoria and Johannesburg with stations in Midrand, Centurion, and Hatfield. Travelling at maximum speeds of 160 to 180 kilometres per hour the train will reach Pretoria from Johannesburg in less than 40 minutes. The minimum frequency between Johannesburg and Pretoria will initially be six trains per hour per direction and it will operate approximately 18 hours per day. The remainder of the rail network linking all stations will be completed in 2011.
REASONS TO TRAVEL BY TRAIN
- It is the greener option. "There is currently a process being put into place whereby the corporate traveller will be able to benefit from a tax rebate due to using 'greener' travel options," says Giovanna.
- It's business as usual - meetings can be arranged en-route and most high-speed premier trains have Wi-fi Internet access.
- Overnight trains include the benefit of saving on accommodation and arriving at the final destination early in the morning.
FANTASTIC FLIGHT DEALS
| DESTINATION | FARES | TAXES | TOTAL |
| London | R4,150 | R1,076 | R5,226 |
| Madrid | R4,550 | R452 | R5,002 |
| Paris | R4,550 | R797 | R5,347 |
| Dubai | R2,290 | R2,265 | R4,555 |
| Hong Kong | R3,430 | R2,419 | R5,849 |
| Perth | R4,850 | R3,962 | R8,812 |
| Sydney | R4,850 | R4,221 | R9,071 |
| Auckland | R6,450 | R3,784 | R10,234 |
| New York | R5,700 | R3,958 | R9,658 |
| Chicago | R8,640 | R778 | R9,418 |
| Los Angeles | R6,360 | R5,841 | R12,201 |
| Nairobi | R3,450 | R1,097 | R4,547 |
| Windhoek | R1,190 | R1,309 | R2,499 |
| ADD ON'S | | | |
| Cape Town Return | R1,456 including taxes |
| Durban Return | R864 including taxes |
| Port Elizabeth | R1,320 including taxes |
| East London | R1,320 including taxes |
Strict Terms and Conditions Apply. All fares are subject to availability at time of booking, currency fluctuations and change without prior notice. All Fares are Ex-Jnb and are correct at time of going to print - 18/08/2010. Fares exclude agency fees.
****Contact our leisure consultant, Graham Moore for any booking reservations on 031 368 8000****
SEPTEMBER 2010 LUCKY DRAW COMPETITION
All 83 rooms are designer decorated. Stunning views over the Indian Ocean and harbour. Every aspect of room amenities and décor has been considered. Very urban design.
The bedrooms at the hotel have been designed to cater for the business traveller with all the required technology on site. Bathrooms only have expansive showers with large shower heads. Thirteen Television channels can be found in every bedroom.
Proud Sponsor of the September 2010 Lucky Draw Prize!
Contact Lerina McCall on email address lerina@lifehospitality.com or visit www.signaturelife.co.za for more details.
This month, one lucky reader stands the chance to win the following wonderful prize:-
2 NGTS BED & BREAKFAST FOR TWO AT DOCKLANDS HOTEL
To enter our lucky draw competition, all you need to do is make any travel booking during September 2010 and email your name and company name to Rachelle: rachelles@turnergroup.co.za
Or, simply fill in your details below and click enter competition.
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