SOUTHERN AFRICA’S TRAVEL NEWS WEEKLY
February 3 2016 I No. 2384
INSIDE
TRAVEL NEWS WEEKLY
TNW6867SD
FEATURE
NEWS
WATCH OUT!
FEATURE
SERVICED APARTMENTS
Uber plans a travel service
Page 2
Travellers want home away from home
Page 8
SADC
Volatile rand poses a challenge
Page 10
Oil price falls but
fuel surcharges rise
Dorine Reinstein
A
34% fall in the oil price since
November has brought no relief
to travellers. In fact, South
African travel agents tell TNW that
although oil is at an all-time low, fuel
surcharges have increased during
this period.
20
10
0
17%
Rand
depreciation
30
34%
Oil price reduction
40
Why would
surcharges increase?
Figures based on prices from Nov 20 2015-Jan 20 2016
Agents have been outspoken
on the subject on TNW’s sister
publication, eTNW. One agent
said the oil price was predicted to
become cheaper than water. “Even
with a terrible rand, fuel surcharges
shouldn’t be so high.”
Although agents acknowledge that
TNW7416SD
airlines are faced with a crippling
rate of exchange, most are left
wondering why the airlines decide
to “hide” this cost in a surcharge
instead of increasing the base fare.
Franz Von Wielligh, gm of Flight
Specials, says that all commercial
agreements that agents have
with regard to commissions and
incentives are based on the fare
portion of sales, thus not increasing
the base fare disadvantages
agencies in terms of reaching
targets.
“The airlines are the ones
bleating about transparency – going
mad when agents find a way to
charge a service fee ‘hidden’ in
the ticket price – but then they [the
airlines] hide their own increases in
the fuel levy. That is such doublestandard, underhand behaviour,”
another agent said on eTNW.
Internationally, the practice of
reducing airfares and increasing
surcharges is also receiving
attention. Paul Hudson, president of
FlyersRights, a US-based non-profit
consumer organisation representing
airline travellers, told TNW that base
fares had become a smaller portion
of the overall airfare over the past
few years. He says there is a lack
of legal definition of what an airfare
should include.
Airlines continue to cite the rate
of exchange in South Africa as the
reason that fuel surcharges remain
high. They argue that the volatility of
our currency also necessitates
To page 2
Setting sail!
Cruises International is offering travellers the chance to pay for one guest
and get 50% off the second ticket! The offer is valid until February 15 and
applies to all Royal Caribbean International sailings, excluding China. The guest
receiving the 50% discount must be booked in the same stateroom as the first
guest who books at full fair. Travellers can also earn up to $300 (R4 937) in
stateroom on-board credit and the offer includes one select beverage package
on Jewel, Vision and Rhapsody of the Seas for sailings departing between April
and November. Pictured here preparing to set sail are Cruises International’s
Dionne Potiphar, Trade Relations manager Gauteng; Thaybz Khan, manager
Contemporary Brands (Royal Caribbean, Celebrity Cruises, Azamara Club
Cruises) and Henuti Purshotam, product manager. Photo: Megan Fischer
Stop press!
Another Gulf carrier for SA?
OMAN Air has set its sights on
South Africa. The airline advertised
in The Star on January 27 that it was
looking for a “representative partner”
in the local market. “Ideally, your
organisation will be well-established
and able to demonstrate strong links
to the aviation and tourism-related
sectors,” the advert says.
Oman Air is the flagship carrier
of the Sultanate of Oman. The
airline currently operates direct
international flights from Muscat to
Abu Dhabi, Bahrain, Doha, Dubai,
Jeddah, Riyadh, Dammam, Madina,
Tehran and Kuwait in the Gulf region,
as well as Cairo, Beirut and Amman
within the wider Middle East region.
It also flies to 11 destinations in
India; Karachi, Islamabad and Lahore
in Pakistan; Kathmandu in Nepal,
and Colombo in Sri Lanka, as well as
the Maldives, Bangkok, Singapore,
Kuala Lumpur, Manila, Jakarta,
Zanzibar and Dar es Salaam. Its
European destinations are London,
Milan, Munich, Frankfurt, Paris and
Zurich. 
Cameroon airport to
close for repairs
DOUALA International
Airport in Cameroon will
close for reconstruction
from March 1-21. All flights
that operate from Douala
will use Yaoundé Nsimalen
International Airport during
this time.
During the closure,
repairs will be made to the
runway and aircraft parking
areas. 
TNW6153SD
Rubes®
By Leigh Rubin
NEWS
Watch out OTAs, here comes Uber!
Dorine Reinstein
A
FTER completely
disrupting the taxi
industry, Uber may well
become a threat to OTAs. The
popular hail-riding platform
has patented a travel booking
service that seems to
signal its entry into the OTA
business.
In the patent application for
Uber Travel, the company says
it aims to provide a perfectly
timed and seamless end-toend trip, including the booking
of flights, ground transport
and accommodation. The
system would also monitor
flight and vehicle delays,
and alert the appropriate
airline and hotel systems,
re-accommodating the traveller
when necessary.
Uber has only just registered
the patent for its new
service but Russell Jarvis,
spokesperson for Travelstart,
says if Uber goes live with its
new offering, the company
will be in a good position to
threaten the industry as it is
already known by many users,
and has built an audience
across multiple countries that
trusts and loves Uber.
“The size of the threat they
pose to the industry at large
will depend largely on where
they get their inventory from.
They might just end up being
another ‘super-affiliate’ if they
can’t implement an integration
where they control the entire,
or many parts of the supply
chain. Also, just because a
company has a reputation for
being a disruptor in a niche
does not mean they will be
successful when they try to
disrupt other niches – even
Google hasn’t quite been able
to crack travel – it’s a complex
industry with many touchpoints,” says Russell.
Uber’s potential entry into
the OTA space, could well see
more OTAs move to address
the local transport gap in
their itineraries. Russell says
there is definitely room for
innovation and competition in
this space, which could start
happening via partnerships
and acquisitions.
OTAs who rely solely on
the traditional OTA business
models are in danger of
thinking that doing the
same thing will work year in
and year out, agrees Rian
Bornman, md of FlightSite
Agent. “At FlightSite, we see
the future of the South African
OTA in creating better access
to local content. For example,
we’re the first OTA to offer a
range of bus tickets, bookable
and payable through Pick n
Pay stores,” he says.
Travelstart has also been
focusing on niche areas
of the sector, according to
Russell. “We are localised; we
support our customers over
the Internet and phone, and
we have relationships with
suppliers. Many of the touchpoints Uber Travel wants to
hit go far beyond the scope
of products and services
Travelstart wants to offer its
customers.”
Whether or not Uber will
disrupt the travel industry as
significantly as they have the
taxi industry remains to be
seen. “Currently the travel
industry is a multifaceted
chain affected by many
variables and whether or not
it’s something that can be
‘uberised’ as easily as one
facet of a trip (hailing a taxi)
is yet to be seen.” 
Airlink returns to Nosy Be
AIRLINK and MadagasCaT
Charters and Travel will
introduce a flight between
Johannesburg and Nosy Be
in Madagascar, effective
March 20. The flight will
operate on Sundays.
The flight will depart at
09h30 from OR Tambo
There were hunters, and there were gatherers, but
the most coveted occupation of all was the cushy
administrative desk job.
Founding Editors:
John H Marsh (1914-1996)
TRAVEL NEWS WEEKLY
www.etnw.co.za
Published by
Travel & Trade Publishing (Pty) Ltd
Printed by Juka Printing (Pty) Ltd
Phone: (011) 327-4062
Fax: (011) 327-4094
E-mail: [email protected]
Web: www.nowmedia.co.za
Address: Now Media Centre,
32 Fricker Road, Illovo Boulevard,
Illovo, Johannesburg.
PO Box 55251, Northlands,
2116, South Africa.
EDITORIAL
Editor: Debbie Badham
Journalists:
Darise Foster
Carina Borralho Photographers:
Production Editor: Ann Braun
Leona Marsh (1923-2003)
[email protected]
Dorine Reinstein
Taryn Nightingale
Shannon Van Zyl
Megan Fischer
GROUP PUBLISHER
David Marsh
[email protected]
DEPUTY PUBLISHER
Natasha Schmidt
[email protected]
SALES
Sales Director: Kate Nathan
Advertising Co-ordinator: Anthea Lucas
PRODUCTION
Design Head:
[email protected]
[email protected]
Dirk Voorneveld
SUBSCRIPTIONS
[email protected]
2 n Wednesday February 3 2016
International Airport and
arrive in Nosy Be at 14h00.
The return flight will depart
Nosy Be at 14h45 and
arrive in Johannesburg at
18h45. The return flight will
make a technical stop in
Vilanculos for refuelling.
MadagasCaT Charters
and Travel has contracted
to make an advance
purchase of 20 seats on
each flight. The remaining
17 seats will be made
available for sale on the
GDS. The service will be
operated using an Embraer
ERJ 135. 
Oil price falls but fuel surcharges rise
From page 1
surcharges outside of the
base fare.
Approximately 50% of
South African airlines’ costs
are in dollars (including
fuel) and the impact of
rand volatility is therefore
significant, says Erik Venter,
Comair ceo. “Fortunately
the recent collapse of the
rand has been partly offset
by the decline in the price
of oil but the decline in
operating costs seen in the
US and Europe has not been
realised in South Africa.”
According to Rodger
Foster, ceo and md of SA
Airlink, carrier-imposed
surcharges are hedging
mechanisms to mitigate
currency and fuel price
fluctuations. “It is true that
airlines could increase
their fares in rands and do
away with carrier-imposed
surcharges, but this is
impracticable given the
volatility of our currency.”
Kirby Gordon, vp sales and
distribution for FlySafair, says
even if hedging measures
are in place, they cannot
always outlive a sustained
and rapid deterioration of
the currency.”
Aviation specialist,
Christopher Elliott, argues,
however, that part of the
reason for a low base fare
is that airlines want to offer
the lowest fare possible.
“They would advertise a zero
fare if they could, because
customers book them, even
when fees and taxes are
later added on to the final
cost.” He says although
airlines are legally required
to advertise the full fare,
somehow passengers are
still drawn to the “low” base
fare.
But Rodger maintains
airfare pricing is not that
simple and the ultimate
determinant of how much
the carrier can sell the
seat for (and therefore how
low the base fare needs
to be dropped) is what the
customer is willing to pay,
and the customer is spoiled
for choice in a domestic
open skies environment and
with the current oversupply
of airlift capacity.
Fare increases are not out
of the question yet either,
according to Hein Kaiser,
spokesperson for Mango.
“At this time, fare increases
are somewhat mitigated by
a much lower fuel price but
should the currency weaken
more it may impact future
travel costs.” 
QUICK READ FOR DECISION-MAKERS
TNW7403SD
AirHeads
A snapshot of the week's airline news
Temporary flight changes for Air Namibia
AIR Namibia’s Windhoek-Walvis Bay (WDH-WVB) and LüderitzOranjemund (LUD-OMD) services will be affected by routine
maintenance on one of its aircraft, effective January 20 to
February 22. WDH-WVB flights SW165, SW166, SW167 and
SW168 will be cancelled on Mondays, Wednesdays, Fridays
and Sundays. LUD-OMD flights will operate in the afternoon
on Mondays and Wednesdays.
SQ to launch Canberra-Wellington service
SINGAPORE Airlines is launching services between Canberra
and Wellington, New Zealand, effective September 20. Subject
to regulatory approvals, the route will operate SingaporeCanberra-Wellington. Flights will depart Singapore at 23h00
on Tuesdays, Thursdays, Saturdays and Sundays and arrive in
Canberra at 08h35 the next day. Flights then depart Canberra
at 09h50 and arrive in Wellington at 15h05. The return flight
will operate on Mondays, Wednesdays, Fridays and Sundays,
departing Wellington at 20h15 to arrive in Canberra at
22h05. The flight departs Canberra at 23h30 to arrive in
Singapore at 05h50 the next day. The service will be operated
using a 266-seat Boeing 777-200s with 38 seats in business
class and 228 in economy.
Pictured here ready to take South Africans on new adventures are (from left) Royal African
Discoveries’ Mitzalyn Alonso Cruz, Gauteng sales representative; Thuli Khumalo, senior
tour consultant; and Michelle Jansen, operations manager. Photo: Megan Fischer
Discoveries Worldwide offers
new take on packaged tours
Debbie Badham
R
OYAL African Discoveries
has enhanced and
expanded its customtailored offering through the
launch of its new brand,
Discoveries Worldwide, to offer
unique experiences to the East.
The group, which previously
operated in the East under
the banner of Wendy Wu, has
made a strategic decision
to shift from mass-market
to boutique branding, says
Royal African Discoveries md,
Johan Groenewald. He says
while nothing has changed
operationally, the new brand
will expand its product
offering to include itineraries
in Japan, Indonesia and the
Philippines. Itineraries currently
also include China, Vietnam,
Cambodia, Laos, India, Sri
Lanka, Nepal, Thailand and
Myanmar.
Johan says over the years
Royal African Discoveries
has seen a growing demand
from experienced travellers
who know what they want
and who want to experience
destinations in a different
way. For example, most local
travellers would associate
Indonesia with Bali. However,
Discoveries Worldwide will now
offer small boat cruises among
the lesser-known Indonesian
islands. “Indonesia has an
incredible culture to explore
and a huge expanse of islands,
and we will now offer seven-day
cruises in the region that are
not yet sold in South Africa,”
says Johan. “These cruises
will particularly appeal to
divers and will also explore the
islands’ vibrant market life,”
he adds. 
Gauteng Tourism welcomes new boss
Darise Foster
SIPHIWE Ngwenya has been
appointed the new ceo of the
Gauteng Tourism Authority.
The former Gauteng Growth
and Development Agency
head took over from former
Gauteng Tourism ceo, Dawn
Richardson, on December 1.
“I have come into this
role with big goals and even
bigger expectations,” Siphiwe
said.
He told TNW his main
goal was to increase and
promote Gauteng Tourism
as a brand both locally and
internationally. “I want to
ensure that we establish
Gauteng as more than a
transit destination.”
Gauteng Tourism would
prioritise solidifying a
partnership with the travel
and tourism sector to fulfil
stop shop of
this goal, said
facilities that
Siphiwe. “We
can advise about
need to establish
visa issues,
a partnership or
safety and
‘brand alliance’
entertainment.”
with travel
Gauteng
agents and
Tourism would
tour operators
also address
to showcase
challenges
the various
relating to
attractions on
permits and
offer in Gauteng.”
tourism grading
To start the
Siphiwe Ngwenya
as part of
partnership, the
the concierge
Gauteng Tourism
service, Siphiwe added.
Authority offices in the
“Ultimately, I hope to tackle
Johannesburg CBD would
the negative perceptions
act as a concierge platform
plaguing Gauteng –
for all travellers and tourism
particularly those relating
service providers looking for
to fraud and safety – and
more information, Siphiwe
showcase it as a destination
revealed.
of substance with endless
“By the end of the next
activities and attractions for
financial year, our offices
both corporate and leisure
at the Gauteng Tourism
travellers to enjoy.” 
Authority will be a one-
Premier moves into Mpumalanga
PREMIER Hotels and Resorts
has acquired The Winkler hotel
in Mpumalanga.
The hotel was formerly
owned by the Hospitality
Property Fund and marketed
by Protea Hotels and managed
by Extra Bold, functions that
will now be handled by Premier
Hotels and Resorts.
Premier Hotel The Winkler
offers 87 guest rooms, ranging
from standard and executive
rooms to family rooms and
suites. All rooms have en-suite
bathrooms, satellite television
and Internet connectivity.
Located a short distance
from the Kruger National
Park and Kruger Mpumalanga
Airport, the hotel is the first
of the group’s properties
in Mpumalanga. “We are
continuing our national
expansion and Mpumalanga
has always been viewed as
an important location in our
strategic growth plans,” says
Samuel Nassimov, md of
Premier Hotels and Resorts. 
TNW7419SD
4 n Wednesday February 3 2016
QUICK READ FOR DECISION-MAKERS
TNW7287SD
NEWS
Where do travellers’ rands go further?
Darise Foster
W
ITH the rand’s recent
depreciation, many
travellers will be
questioning the affordability
of travelling outside the
country.
The table below illustrates
how much value the rand
has lost since January
last year in relation to the
currencies of destinations
Destination
UK
China
Zambia*
Mauritius
Dubai, UAE
Netherlands
Thailand
Mozambique
Hong Kong
New York**
popular with South
African travellers. These
destinations were listed
among the top 20 cities
visited by South Africans
in 2015, according to
Travelstart, and the historical
currencies were sourced
from www.xe.com.
As the table shows, travel
to any destination has
become more expensive.
However, many of those in
the table are still attractive
because the rand can still go
a long way.
”The value of the rand
will continue to worsen but
value can still be found in
affordable destinations such
as Thailand and Mauritius,”
says Christopher Simonsen,
product and operations
manager at Checkout Tours.
Pentravel ceo, Sean Hough,
also believes that Thailand
Currency
Pound
Yuan Renminbi
Zambian Kwacha
Mauritian Rupee
UAE Dirham
Euro
Thai Baht
Mozambican Metical
Hong Kong Dollar
US Dollar
and Mauritius are great
options as their favourable
exchange rates continue to
offer value and affordability
for South African travellers.
“They offer visa-free,
affordable travel and I think
2016 will be a good year for
these destinations from a
South African perspective.”
Travel Counsellor, Lana
Sykes, agrees Thailand
is still cheap despite the
Relative rand amount
1/1/15
R18,00
R1,86
R1,08
R0,36
R3,14
R13,98
R0,35
R0,32
R1,49
R11,56
1/11/15
R21,36
R2,18
R1,08
R0,38
R3,76
R15,21
R0,38
R0,32
R1,78
R13,82
*According to American Express Forex in The Zone@Rosebank, South Africans cannot exchange
rands for Zambian Kwacha before departing South Africa. They have to purchase US Dollars and
exchange them for Kwacha once in Zambia.
less favourable exchange
rate: “Getting to Thailand
is expensive but your rand
goes a long way once you
are actually there.”
All-inclusive offerings will
also be vital this year as
travellers will look to cut
costs, Sean adds. “Cruising
and coaching are also
excellent recommendations
for travellers this year,”
he says. 
% change since
21/1/16
R23,59
R2,53
R1,47
R0,46
R4,54
R18,17
R0,46
R0,37
R2,14
R16,68
1/1/15
31%
36%
36%
28%
45%
30%
31%
16%
44%
44%
**New York was not featured on Travelstart’s list of most-visited
destinations by South Africans in 2015. It has been added to
this list to represent the US Dollar.
TNW7415SD
6 n Wednesday February 3 2016
QUICK READ FOR DECISION-MAKERS
Find what you seek
The reason why most people leave India
with excess baggage.
Find what you seek
To know more, log on to www.incredibleindia.org. Mail: [email protected]
TNW7250
SERVICED APARTMENTS
New to The Capital
THE Capital Hotel Group
opened its first Cape Town
hotel, The Capital Mirage,
in November. Situated in
trendy De Waterkant, it has
65 rooms comprising fully
serviced luxury and superior
studios, as well as one-,
two- and three-bedroom
apartments.
There is a choice of three
restaurants, a bar with great
city views, a spa and hair
salon, The Gin and Snooker
Library and a swimming
pool and gym.
The Capital on Bath in
Rosebank, Johannesburg,
offers 142 standard hotel
rooms, luxury executive
suites and apartments with
one to three bedrooms.
A spacious fitness centre
overlooks a pool. There’s a
large garden with space for
soccer and cricket activities.
Complimentary services
include high-speed WiFi,
laundry, parking and
shuttles to the Rosebank
Mall and the Gautrain
stations.
Serviced apartments are growing in popularity with travellers, TMCs and travel procurers
as a result of potential comfort and savings advantages. Michelle Colman reports.
Business travellers want
a ‘home away from home’
D
EMAND for serviced
apartments is growing
globally. In Europe there’s
been an explosion – the
number of apartments has
jumped by over 80% in the last
two years – and it is estimated
that there are now over
105 000 apartments in over
1 700 locations. Industry
experts predict a further 50%
growth in facilities over the
next two years.
BridgeStreet Global
Hospitality, a family of six
brands in the serviced
apartment arena well known in
the Americas and EMEA, has
identified a travel trend among
travel professionals that it
dubs the “digital nomad”
lifestyle. In a poll of 30 000
global professionals that
it conducted, 83% showed
a preference for serviced
apartments as their working
headquarters while on the
move, enjoying the benefits
of home along with traditional
hotel amenities.
The freedom, space and
self-catering facilities offered
by serviced apartments were
favoured over exotic beaches
and busy coffee shops. Digital
nomads liked the fact that in a
serviced apartment they were
not bound by hotel rules, could
entertain as they wished,
eat when they wanted to and
could stick to diets or nutrition
plans. The serviced apartment
is also suited to the increasing
blend of business and leisure
(‘bleisure’) that characterises
much of today’s business
travel.
Growth in SA
Growth of the trend in South
Africa appears to be more
measured, although there has
been a significant increase
in serviced apartments in
Sandton – Johannesburg’s
second, and still developing,
CBD. A company that
“Savings can be up to
25% compared with a
hotel room.”
has recently contributed
substantially to the sector is
The Capital Hotel Group, which
has five properties in Sandton
and a sixth under construction.
The group also opened a
property in Cape Town in
November; one in Rosebank,
Johannesburg, in December
and is building yet another
at Menlyn in Pretoria. Gillian
Kapotwe, head of marketing,
says future expansion plans
include 11 properties in the
sub-Saharan market.
Capital apartments offer
fully equipped kitchens, dining
areas, lounges and, in general,
more living space than the
average hotel room.
Also well known in Sandton
is Legacy Hotels & Resorts,
which operates the DaVinci
Suites, Michelangelo Towers
and Raphael Penthouse
Suites. According to marketing
co-ordinator, Candice
Morawitz, building will soon
begin on a fourth Sandton
property, Leonardo, on Maude
Street.
All Legacy apartments
are fully serviced, link into
Sandton’s central shopping
centres and malls and are
within walking distance of
the Gautrain station. A full
concierge service is offered as
well as complimentary return
transfers within a 2km radius
of each property.
Serviced apartments also
offer rates that compete
favourably with traditional
hotels, meeting the goals
of travel procurers. Gillian
puts the saving at up to 25%
compared with a hotel room,
when space and amenities are
compared. Candice says the
longer the stay, the more costeffective the rate and ancillary
services such as laundry are
also less expensive.
What about policy?
Usage of serviced
apartments is increasingly
becoming a part of travel
policy, says Alastair
Dickenson, client business
manager at Wings Travel
Management. This is
especially the case for
employees being moved to
different locations within
their company.
“For example, an employee
moving for a year or more to
a different location would be
entitled to stay in a serviced
apartment for one to two
months while longer term
housing is finalised. Those
placed on projects for three
months might spend the
whole time in a serviced
apartment,” he says.
The mode of
To page 9
TNW7361SD
8 n Wednesday February 3 2016
QUICK READ FOR DECISION-MAKERS
From page 8
accommodation is also
becoming more popular
for shorter stays. “We are
now seeing more transient
passengers, especially
those travelling regularly
to the same city, using
apartments,” comments
Alastair.
Moreover, serviced
apartments are able
to provide secure
environments and fulfil the
corporate’s duty-of-care
obligations. Alastair says
industry standards are
being introduced to ensure
safety and security of
guests by bodies such as
the Association of Serviced
Apartment Providers (ASAP),
which has a membership
spanning nine countries,
all adhering to a Code of
Conduct.
The serviced apartments
sector in the rest of Africa
is still rather small, an
anomaly when the demand
for extended-stay facilities
is significant, especially
considering Africa’s distance
from its markets on other
continents. Very few
international brands have
delved into Africa’s serviced
apartment segment, and
many existing facilities
are owner-operated
conversions from residential
developments.
Experts say that while an
increasingly mobile global
workforce will continue
to boost the serviced
apartment sector, the
millennial generation’s
thirst for travel is boosting
demand even further.
Alastair agrees that
millennials are part of
the reason for growth but
also puts the popularity of
serviced apartments down
to a general maturity and
development of the sector.
TMCs that historically
booked hotels only, are now
much more involved with
serviced apartments. The
same is true of the travel
buying community.
DIY on the rise
“We are seeing a greater
number of requests for
more kitchen appliances
such as blenders,” says The
Capital’s Gillian Kapotwe,
noting that people are
eating more healthily
and want to take time to
actually prepare healthy
meals. “Also travellers and
bookers are more price-
conscious and shop around,
therefore bookings through
online travel agents are
becoming more significant
because of the ability to
compare prices and ease
and speed of booking. Fast
and free Internet is now an
expectation for business
travellers,” she adds.
The practicality of the
room layouts and ease of
use is definitely important,
notes Legacy Hotels and
Resorts’ Candice Morawitz.
“The booking process must
be simple and the service
must be perfect on a daily
basis – there is no room
for error as it is a very
competitive market,”
she says.
Global trends – facts
and figures
The US remains the
largest market for
serviced apartments,
accounting for almost
60% of the world’s
extended-stay units.
Marriott Worldwide was
the leading serviced
apartment operator
by number of units in
2014. Also in the top
five were Extended
Stay Hotels Group
(USA); InterContinental
Hotels Group; Oakwood
Corporate Housing and
Hilton Homewood/
Home2Suites.
Occupancies at serviced
apartments are
outpacing occupancies
in traditional hotels.
From January to August
2014, London’s serviced
apartments recorded
an average occupancy
of 83,2% compared
with 81,9% for hotels.
In Sydney, apartment
occupancy reached
87,5% compared with
83% for hotels. In Dubai,
the figures were 78%
and 77,4% respectively.
IHG, Hilton and Accor all
offer serviced apartment
brands, namely
Staybridge Suites,
Homewood and Adagio
respectively.
A number of serviced
apartment operators
now offer different subbrands within the sector
to cater for different
lifestyles.
A growing trend among
developers is to locate
serviced apartments in
the same buildings as
hotels. Costs are then
saved, as functions
such as housekeeping,
laundry, security and
maintenance are
shared.
Source: Global Serviced
Apartments Industry Report
2015/16, The Apartment Service
Worldwide 
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Visit: www.travelinfo.co.za
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return tickets
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to enter the prize draw
TNW7525
QUICK READ FOR BUSIEST PEOPLE
Wednesday February 3 2016 n 9
SADC
The fluctuating rand exchange rate poses challenges
for agents booking travel to the SADC region.
Taryn Nightingale reports.
Volatile rand poses a challenge
W
ITH the rand having
recently suffered
significant falls,
booking travel to dollardenominated regions presents
agents with considerable
challenges.
“The weakened rand is
definitely a problem when
booking travel to the SADC,”
confirms Carol Eedes, manager
and owner of Alphabet Travel.
Carol books mining expeditions
for corporate travellers to
dollar-denominated countries
such as Mozambique, Zambia
and Angola. She says the
fluctuating exchange rate
makes booking within the
SADC region “fluid”. The
situation constantly changes
and providing accurate quotes
for your client can be a tricky
process, she says.
“Sometimes you’ll have
quoted a client and the
exchange rate will have
changed within the 24-hour
validity period of the quote,”
says Busi Nhlapo, md of ITC
Destination Express. Busi
books corporate travel to
Angola and Zambia, which
predominantly price their
hotels and itineraries in
dollars. She says if you have
not prepared yourself for
Salad Nthenda
the possibility of the rand’s
value depreciating within that
time you could find yourself
losing money. Busi checks
the exchange rate twice a day
so that she can quote her
clients accordingly. She says
that clients too find it very
frustrating when their initial
quote has increased because
of a weakening rand.
Although booking travel to
dollar-rated SADC countries
is a precarious process,
corporates are left with little
choice and must book travel
to where their business is
taking place.
Malawi Wildlife and
Beach Tour 6Days/5Nights
Packages available from R13 560 PPS staying in Majete
OR from R14 785 if staying in Liwonde National Park.
Includes: 6 days fully guided trip, accommodation on
full board basis, start & finish in Blantyre, 2 activities p/
day (Sunset Cruise & Snorkelling trips), 2xGame drives
and 1 boat safari.
Excludes: Flights and taxes.
Subject to availability.
Package is NETT
Contact Details: Tel: +27 1123 48577
Mobile: +27 82 801 2015
Web: www.malawiconsulate.co.za
Email: [email protected]
Gillian Bronkhorst, Flight
Centre travel agent, says she
has not seen much decline
in the number of business
travellers headed to the
SADC region – whether the
destination’s itinerary and hotel
rates are in dollars or not. “I
have noticed though, that my
corporate clients are trying to
source cheaper hotels and will
even stay in guesthouses in
some countries to keep costs
lower,” she adds.
When corporate travellers do
choose to stay in guesthouses,
they are usually properties
that have been recommended
to them by their clients or
guesthouses that they have
sourced after visiting the
destination a few times.
In a poll published in the
December 16 issue of TNW,
67% of respondents said the
weakened rand had forced
South African leisure travellers
to choose domestic travel over
travel in the dollar-denominated
SADC region.
As the poll suggests, leisure
travellers can exercise more
choice when deciding whether
to travel in the SADC region.
Salad Nthenda, vice consul
for Malawi Tourism, confirms
that, although a considerable
percentage of South Africans
travel to Malawi for business,
there is enormous potential for
growth in leisure travel.
Salad says South Africa is
Malawi’s biggest source market
and contributes, on average,
over 15% of the country’s
international arrivals each year.
However, a large majority of
hotel rates and itineraries in
Malawi are quoted in dollars.
South African travellers
make up over 60% of the total
visitors to Swaziland. Unlike
Malawi, whose rates are
quoted in dollars, Swaziland’s
rates are quoted in the local
currency, the lilangeni, which is
pegged to the rand.
“The weakened rand has
had a positive impact on
travel from South Africa to
Swaziland,” says account
executive, Lizzy Moletsane,
from the Swaziland Tourism
Board. “We see it as an
opportunity to capitalise on the
fact that travelling in Southern
Africa is beyond most South
Africans’ reach. We encourage
them to consider Swaziland as
an option for an international
break with a local flavour,”
she says.
Operational challenges
IT’S NOT just cost
constraints that influence
South Africans’ decisionmaking process when
booking leisure travel in
the SADC region but also
their perception of those
destinations, says Chandré
Reddy, ceo of Aurulent
Travel in Cape Town. If
South Africans go on an
international holiday, they
want to feel as if they have
left home. If they have to
pay expensive rates for a
local atmosphere, they feel
that they might as well book
travel to other continents,
she says.
Lead-time issues and
communication lapses are
some of the other obstacles
faced when booking travel
to the SADC region, says
Alphabet Travel’s, Carol
Eedes. While Flight Centre’s
Gillian Bronkhorst says she
often waits longer than a
week to hear from hotels
when she makes bookings,
Destination Express’s Busi
Nhlapo says she has to
send a follow-up email
when making telephonic
bookings with suppliers
that are predominantly
Portuguese-speaking to
ensure that there is no
misunderstanding.
“Sometimes the websites
are badly out of date,” adds
Carol. “Clients will doublecheck a quote online and
then assume that the travel
agent has misquoted them,
then once they arrive in the
SADC country, they discover
that not only were the rates
on the website outdated but
that there were other costs
included in the booking that
the website did not reflect.”
When booking travel to
the SADC region, Carol
recommends that agents
are upfront with their
clients about the types of
challenges that may be
involved. “Ultimately your
business is only as valuable
as the customer care you
provide,” says Busi.
Cover your assets
Chandré advises travel
agents to “cover their
assets”. She says that travel
agents have to ensure that
they protect themselves by
including specific terms and
conditions in their quotes.
Destinations within the
SADC region are employing
various strategies to try to
attract more South Africans.
Malawi Tourism says
this comes down to
understanding your market
and what it wants. In line
with this, Malawi intends
to develop itself as a MICE
destination, says Malawi
Tourism’s Salad Nthenda.
The launch of Peermont
Hotels Resorts and Casinos’
newest property, the
Umodzi Park in Lilongwe,
which houses the Bingu
International Convention
Centre is a first step in this
strategy.
Malawi is also looking to
open up Likoma Island to
international flights to attract
more visitors.
Swaziland Tourism Board’s
Lizzy Moletsane says
knowing what makes your
offering unique is important
when trying to attract South
African travellers.
“For example, Swaziland
is one of the few remaining
executive monarchies in
Africa and boasts an ancient
cultural heritage probably
unmatched anywhere in
Africa.” 
TNW7528
10 n Wednesday February 3 2016
QUICK READ FOR DECISION-MAKERS
COMMUNITYNEWS
JOBS
Births, deaths, marriages, promotions – we want to know! Please fax or e-mail TNW’s Debbie Badham, at [email protected] or (011) 327 4094.
Pick of the week
brought to you by
Vive La France!
At a recent workshop hosted by Atout France at the Radisson Blu Gautrain
hotel, suppliers across the French tourism industry showcased their products to
agents. Pictured here at the workshop are (from left): lllona Du Bruyn (GSA sales
representative, World Travel), Hélène Bezuidenhout (regional manager, Atout France),
Héloïse Deparisse (hotel sales director, AC Hotels) and Roxane Guerin (DMC
manager, CI Experience). Photo: Taryn Nightingale
Appointment
 Bushwise has appointed
Vaughan Jessnitz as a
FGASA Field Guide trainer.
Vaughan has been in the
tourism industry for the
last 10 years, guiding
and managing camps
throughout South Africa,
although focusing more
on the Greater Kruger.
Alongside his career he
is also involved in various
conservation and research
projects specialising in
entomology and bio-diversity
mapping throughout South
Africa. In 2002 he was
awarded the Derik Grey
Award for his research
project focusing on using
certain species of butterflies
and beetles as biological
indicators, and represented
South Africa at the SIIRS
conferences in Stockholm,
Sweden.
Obituary
The team at Lufthansa German
Airlines is deeply saddened
by the passing of Gerhard Kemper
on 20 January 2016.
Gerry, as he was known to the trade, joined
Lufthansa’s New York sales team in 1955.
Over a period of 35 years his posting took
him to the USA, Germany, South America,
Far East, to the airline’s Seeheim training
centre and finally in 1984 to Johannesburg.
He headed Lufthansa’s operations as
General Manager Southern and Eastern
Africa, responsible for the airlines passenger
business, cargo and airport management.
He was a liberal thinker and unbeknown to
many, played a pivotal role in South Africa’s
move towards democracy by supporting
IDASA (Independent Democratic Alternative
for South Africa) in the 1980’s, including
providing air transportation for the ANC and
the then government to meet in Dakar.
To advertise
on this page
email
[email protected]
Conference Co-ordinator –
Cape Town
Quantex Recruitment Group
3+ years’ conference experience
essential for this leading events
company. Experience with preplanning, organising, monitoring
& following up on events required.
Email: [email protected]
Key Account Executive –
Cape Town
Lee Botti & Associates
South. Maintain relations on VIP
accounts for luxury tour operator.
East & Southern Africa product
knowledge essential! Sal R20 000.
Email: [email protected]
Languages Expert –
Johannesburg North
Equity Connections cc
European languages experts with
sound FIT experience highly sought
after. French, German, Spanish
preferred. In-depth knowledge of
South/Southern/East Africa.
Email: [email protected]
National Sales Leader – Randburg
FCM Travel Solutions
Are you hungry, persistent and result
orientated on a national sales level?
Let us help you take our business to
the next level. Email: leigh.bootha@
flightcentre.co.za
Intermediate/Senior Corporate
Consultant – East Rand
Wendy’s Travel Personnel
Work closer to home for well
established, progressive travel agent
utilising your corporate consulting
skills. Amadeus essential!
Email: [email protected]
Global Sales Agent –
Western Cape
Professional Career Services
Sell outbound car rental to the
trade. Travel industry knowledge
and understanding of consultants.
Able to travel to SA regions.
R20000-R25000 + ben.
Email: [email protected]
Ticketing Consultant –
N/Suburbs, Cape Town
Quantex Recruitment Group
Pump out tickets in a busy
travel office. 2+ years’ ticketing
experience & excellent fares
knowledge. GDS: Amadeus Galileo - Worldspan - Sabre.
Email: [email protected]
Sales/Marketing Coordinator –
Cape Town
Lee Botti & Associates
South. MICE leader in inbound
travel seeks marketing whizz to
support successful sales team.
R10 000 + benefits.
Email: [email protected]
In-Bound Reservations
Consultant – Sandton
Equity Connections cc
Fully utilise your sound working
knowledge of Africa.
Plan, design, cost itineraries
within budget. Handle full
functions of reservations.
Email: [email protected]
National Business Development
Manager
Corporate Traveller
Cold calling, sales pitches and
targets your cup of tea?
Take your career to the next
level on our uncapped earning
module. Email: leigh.bootha@
flightcentre.co.za
TNW7529
Business Development /
Key Accounts Executive –
Johannesburg North
Professional Career Services
Experience in the events/
conferencing industry. Good
understanding of venues, corporate
clients. Cold calling, good sales
track record.
Email: [email protected]
These adverts were selected from the vacancy
section of www.travelinfo.co.za
For more details contact [email protected]
TRAVEL NEWS WEEKLY
Promote your product in our
Luxury Travel Feature
Gerry retired in 1990. He and his family
opted to remain in Johannesburg making
it their permanent home.
For a FREE
subscription
to TNW
contact
Gladys on
Gerry is survived by his wife Halor
and four children Jessica, Nina, Florian
and Boris.
[email protected]
TNW7530
QUICK READ FOR BUSIEST PEOPLE
Issue date: 16 March 2016
Booking Deadline: 17 February 2016
Contact: [email protected]
Tel: +27 11 214 7356
TNW7531
Wednesday February 3 2016 n 11
TNW NEWS
To the point
MSC Cruises has suspended calls to Turkish ports until further notice.
This follows Crystal Cruises’ recent decision to reroute its voyages
that were due to visit Turkey. The decision will affect MSC Magnifica’s
itinerary, which will sail from Venice from March 26. The weekly calls
in Istanbul and Izmir that were scheduled to take place from March
29, will temporarily be replaced by calls to Athens and Mykonos.
The cruise line has cited growing concerns by guests as a result of the
recent suicide bombing in Istanbul as the reason for the suspension.
brought to you by
eTNW and TRAVELINFO
Weak rand – no increase in
all-inclusive bookings
Have you seen an increase in bookings for all-inclusive cruise
packages as a result of the rand’s current status?
No
Yes
41%
59%
eTravel is the ITC market leader in South Africa and assists senior Travel
Consultants and Travel business owners to realise their dreams. If you have
ever dreamt of owning your own travel business or would like to cut costs
by doing away with your IATA license and improve your current business
efficiencies then you should call eTravel. We run the back office for over
200 Independent Travel Companies and specialise
in making your travel business a success by offering
the best commissions, overrides & a comprehensive
support structure. If you have a client base, 5 years
travel consultant experience or already own your
own business but want to make more, then contact
us! You’ll be amazed at how easy it is!
Contact Tammy on 0861eTrave1
or [email protected]
TNW7136
Exotic island experience
Checkout Tours is running a special for travellers visiting Zanzibar. Travellers booking
before February 29 can stay at the three-star Coral Rock Hotel from R8 470pps,
the four-star Villa Kiva Boutique Hotel from R10 825pps or the Langi Langi Beach
Bungalows from R10 965pps. Each option includes return flights on Mango airlines,
airport taxes, seven nights’ accommodation with breakfast daily and return airport
transfers. Pictured here preparing for an exciting island getaway are Checkout Tours’
Giles Clinton (director), Kerry Woodgate (consultant) and Christopher Simonsen
(product and operations manager). Photo: Megan Fischer
More changes at SAA
Debbie Badham and
Dorine Reinstein
S
AA has confirmed that
Ray Nkwe, general
manager for RSA, has
left the airline. Ray’s primary
role was to provide leadership
to the RSA management
team and staff and to ensure
full delivery of the airline’s
Long-Term Turnaround Strategy
(LTTS) in the region.
Spokesperson, Tlali Tlali,
says SAA will announce Ray’s
replacement in due course.
“This is a fairly sudden
resignation and does leave a
void,” says Vanya Lessing, ceo
of Sure Travel. She comments
that, with the understanding
that the trade is critical to
SAA’s survival, the airline
needs to develop a stronger
line of communication.
The lines of communication
at SAA are blurred and there is
an urgent need for the airline
to develop greater continuity
in its relationship with the
trade, agrees Rod Rutter, chief
operating officer for XL Travel.
While Allan Lunz, md of
Bidtravel, shares the opinion
that it’s difficult to work with
an organisation that is in a
constant state of change, he
believes SAA’s relationship
with the trade has remained
positive.
Dinesh Naidoo, group
operations director of
Serendipity Worldwide Group,
told TNW currently none of
SWG’s corporate clients have
indicated they want to move
their business away from SAA.
However, he warns that if the
airline doesn’t “get its act
together”, a move away from
SAA from the corporate market
could be on the cards.
Indeed, one corporate SAA
platinum member, Professor
André van Niekerk, says he is
actively looking for alternative
options for his business travel
needs. “The only option that
comes to mind is BA Comair,”
he comments, adding that
unfortunately the carrier
doesn’t offer the domestic
frequencies he requires. “The
latest flight BA Comair offers
from Johannesburg leaves at
18h00, which is just too early
for any corporate traveller,” he
says.
Comair is always looking
for opportunities to expand
its services in the domestic
market, says Iain Meaker, BA
Comair executive manager
commercial distribution. He
says if SAA were to reduce its
capacity or frequency in the
domestic market, BA Comair
would look at increasing its
offering.
The reason why BA Comair
currently doesn’t offer a later
flight on the JNB-DUR route is
not politically motivated, Iain
says. “The domestic market
is a free market with no slot
constraints.” He says BA
Comair previously operated
later flights to Durban but
found they did not perform
as well as expected. “The
flights are timed to allow
for international flight
connections later that evening
for those folks travelling
overseas on BA and other
interline partners.” 
TNW7413SD
12 n Wednesday February 3 2016
QUICK READ FOR DECISION-MAKERS