NOW manage your travel spend better
January 2010
What
drives
Do travel
h
managers
elp or
inder you?
you? Sobekwa brings Chevron’s global travel processes to Africa
■ MICE – what’s new in the sector? ■ Out and about with ACTE and the ITMSA ■ Mythbuster: All African airlines are unsafe ■ How to improve compliance and cost savings
Contents
New beginnings for a new year
A
NEW partnership and a new look for a new year. That’s a good place to start, I think, especially for 2010, one of South Africa’s most talked-about years in a long time. While continuing our partnership with ACTE SA, BTN is also the new official media partner for the Institute of Travel and Meetings Southern Africa (ITMSA) and in addition to other elements of the partnership, this translates into an extended readership base of corporate travel buyers for the publication. Says Sharon Richards-Lund, ITMSA national sales and marketing manager: “We’re very proud of our new partnership. BTN remains the top and most credible travel buyer magazine in Southern Africa and the ITMSA is thrilled to have formed a media partnership with Now Media whilst both parties keep their independence and own views. BTN shares a common vision in educating the travel buyer and industry trade partners in terms of trends, profiles and news content.” In terms of content, this month we feature Hlumelo Sobekwa, Chevron’s regional travel manager for Africa, the Middle East and Pakistan, to learn about his challenges and successes around bringing global travel processes into Africa. He believes the lack of one, strong global TMC in Africa remains a challenge for corporations. So it’s good to hear that Tourvest Travel Services is using its recently implemented end-to-end online solution as a springboard from which to expand into the continent (page 7). Similarly, Sure Corporate is also using technology to revamp its business model to ensure travel procurement and fulfilment activity is more efficient at every stage of the transaction (page 5). And to deliver all this exciting content – and more – we’ve revitalised our look, with thanks to BTN designer Michael Rorke who has gone for a cleaner spread magazine, with eye-catching images, while still containing all the relevant news and information that makes BTN stand out above the rest. We hope you like it as much as we do. Here’s to everything of the very best for a new year. ■ KIM COCHRANE
COVER STORY We profile Hlumelo Sobekwa, Chevron regional travel manager for Africa, the Middle East and Pakistan. Cover image by Tijana Huysamen.
News
2
Power Panel
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• Out and about with ACTE SA • Sure Corporate introduces new business model • In touch with the ITMSA • Tourvest expands further into Africa
Do travel managers help or hinder you?
Profile
10
Mythbuster
13
How to
14
Deal Detective
16
Destinations
18
Destinations
19
On the radar
22
On the radar
30
BTN speaks with Chevron’s Hlumelo Sobekwa
Is it myth or reality that all African airlines are unsafe?
How to improve compliance and cost savings for 2010
The top ten specials from Travelinfo
Windhoek, Namibia
Chicago, US
What’s new in the MICE sector? PUBLISHER David Marsh MANAGING EDITOR Natalia Thomson CONSULTING EDITOR Kim Cochrane CONTRIBUTORS Linda van der Pol, Max Marx, Hilka Birns, Melody Brandon, Liesl Venter, Natasha Tippel, Sue Lewitton
Cruising as an incentive
DESIGN & LAYOUT Michael Rorke ADVERTISING SALES MANAGER Kate Nathan SALES REPRESENTATIVE Diana Comninos, Lisa Jacobs ADVERTISING CO-ORDINATOR Natalie Walker SUBSCRIPTIONS subs@nowmedia.co.za ANNUAL SUBSCRIPTION RSA full price R275.00, RSA annual debit order R220.00, Foreign on application PRINTED BY Juka Printing (Pty) Ltd PUBLISHED BY Lugan Investments (Pty) Ltd trading as Now Media, Now Media Centre, 32 Fricker Rd, Illovo Boulevard, Illovo, Johannesburg, PO Box 55251, Northlands, 2116, South Africa. Tel: +27 11 327 4062, Fax: +27 11 327 4094,
Brought to you by Now Media, Business Travel Now is a professional travel publication aimed at South African travel procurement decision-makers in travel-buying companies. This publication aims to reflect an unbiased perspective of the corporate travel industry offering insight and tools encouraging readers to manage their travel spend better. BTN is the media partner of ACTE SA and the ITMSA.
e-mail: btn@nowmedia.co.za, web: www.btnow.co.za
January 2010 • BUSINESS TRAVEL NOW
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News
Out and about with ACTE ACTE recently hosted an executive forum in Johannesburg entitled ‘SBTs, Acsa fees and legalese – taking a closer look’, with 98 delegates attending – the corporate travel buyer percentage by company was 42%. The event also included a mini exhibit on online travel procurement solutions available from Amadeus, TravelLinck and Uniglobe Travel. By Kim Cochrane
Up in the air, making sense of Acsa fees and taxes, were from left: Allan Moore, Board of Airline Representatives of SA ceo; Mike Gray, Uniglobe Travel Sub-Saharan Africa president who moderated the session; Bongani Maseko, director: Airport Operations at Acsa; and Wayne Duvenage, Avis ce.
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January 2010 • BUSINESS TRAVEL NOW
In the ‘limelight’ again .... presenting ‘The Amazing Race for a SBT’ was Nedbank’s Howard Stephens (chief procurement officer: Group Shared Services Centre Division) flanked by Shantel Liebenberg (Nedbank travel strategist) and Noreen Creswell, Carlson Wagonlit Travel SA key account manager (right). Stephens described the journey to a R50m prize/saving through use of an online travel procurement solution customised by TravelLinck, improved supplier relationships and an overall change in behaviour.
ACTE Middle East & Africa regional director Monique Swart (left), and regional manager, Cindy Nell, flank Adv Louis Nel who gave a presentation on the Consumer Protection Act, which is coming into effect in October this year. He said companies could be penalised 10% of their annual turnover if they were not compliant; it was important to take cognisance of it so if litigation were to arise, the company could show it had fulfilled its professional business and statutory duty (i.e. it would then be in a better position to reach a good settlement if it had fallen foul of other issues). He reiterated the importance of buyers ensuring their suppliers were also compliant and that he had a DIY toolkit to help companies workshop issues around the legislation. “It is imperative that all companies start their compliance ‘exercises’ as soon as possible,” he said.
News Lorato Ledwaba, Cadbury South Africa category manager – NPS, speaks with Tania Roos, Diners Club SA relationship executive: travel, during a tea break.
Chantal Kliche, Thompsons Corporate sales and marketing manager, and Andrew Shaw, Amadeus Southern Africa solution manager: E-Commerce and Development.
Sandy Berovic, strategic key accounts manager for First Car Rental, and Juliet Nthongoa, strategic account manager HRG Rennies Travel.
Carlson Wagonlit Travel SA’s Sandra Engelbrecht (key account manager) and Desiree Reveley (manager: Business Solutions).
Lungisa Ngqengelele, AfriSam South Africa travel coordinator, with Jackie Cabo, Duma Travel business development manager (right). BP Southern Africa commodity manager – services, Alan Reid, with Philma Gomes, Arabella Starwood Hotels & Resorts sales manager – corporate.
KPMG manager – Shared Service Centre, Liesl Burnett (left), and Baroque Medical head of Travel & Events, Mandy Elliott.
• For more information on the Consumer Protection Act, refer to www.btnow.co.za to download our webinar on the topic as well as BTN September 2009. • For more information around Nedbank’s strategy, see BTN October 2009. • ACTE’s next global education conference will be held in Chicago, US, in May (16-18) and at the time of writing, the first local event for the year was scheduled for May in Johannesburg.
January 2010 • BUSINESS TRAVEL NOW
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News
B
RITISH Airways has launched a R29 million initiative encouraging local companies to expand overseas and also to invigorate business travel. British Airways Business Opportunity Grants will award 50 small to medium-sized South African companies a year’s worth of business travel. Each of the winners will receive ten Club World tickets that are valid for a year. The economic downturn internationally saw business travel budgets slashed by more than 56% during 2009 and South Africa was no exception, with the airline experiencing a considerable contraction in corporate bookings, according to Sue Botes, British Airways’ commercial manager. A recent Harvard Business Review study found that 95% of international business people believe that face-to-face meetings are key to establishing and
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January 2010 • BUSINESS TRAVEL NOW
maintaining long-term relationships and 89% agree that these are essential to seal the deal. Alan Knott-Craig, one of the judges, says his experience bears this out: “The value of face-to-face meetings is incomparable and it’s encouraging to see that British Airways is supporting SMMEs through this difficult time, giving them a chance to expand into new markets.” The Business Opportunity Grants are for registered companies with 250 employees or less. Entries can be made online at www.ba.com/safrica-grants and applicants will need to outline their objectives for 2010 and how being awarded a grant would benefit their business. Interested parties need to apply by February 19, 2010. As an aside, BA’s third daily flight will return on March 28 and the three flights will be operated in full throughout the FIFA World Cup.
Natasha Tippel
British Airways announces boost for local business Ooh la la! Carlson Wagonlit Travel (CWT) in SA recently hosted its ‘Build our World’ function in Johannesburg. The loyalty programme rewards partners who are responsible for organising travel, but don’t necessarily get a chance to travel themselves. Travel bookers are encouraged to register online and every time CWT issues a travel document, points are earned with which to ‘Build our World’. The travel booker is then sent an SMS indicating the number of points earned; 20 points equal one ‘World’. The programme runs for five months and culminates in three fun-filled functions held in Johannesburg, Cape Town and Durban with entertainment and travel prizes, where all completed ‘Worlds’ are entered into a lucky draw. Pictured here in Johannesburg is the always entertaining Brendan van Rhyn as Penny (also taking the part of Cathy Specific and Dr Frank-N-Furter) and CWT’s national sales and marketing manager, Ingrid von Moltke.
Sure Corporate
introduces new
business model
S
By Max Marx
Amadeus
URE Corporate is to introduce a new business model early in 2010 that will make travel procurement and fulfillment activity more efficient at every stage, says Jim Weighell, Sure Travel’s corporate manager. The introduction of the new system has been driven by the need to provide business travel customers with fast, efficient, transparent and cost-effective travel management. “It’s effectively giving our customers what they want at a price they’re prepared to pay.” The new system empowers travel arrangers by providing inventory at their workstations as well as offering increased management information availability, more structured travel policy and SLA management, and faster transaction times, he says. “At the same time, it assists member travel companies in driving down product costs and driving up efficiencies while achieving customer objectives.”
Sure Corporate’s new revenue sources reflect the new reality of corporate and business travel – zero commission and increasing use of technology, says Jim Weighell.
Among the systems introduced that will directly benefit corporate travel arrangers by enhancing the procurement experience from start to reporting stage include: • The AeTM (Amadeus e-Travel Management) self-booking tool. It provides travel arrangers with full control over procurement activity, travel policy and authorisation. The system presents multiple carrier and fare options at the travel arranger’s or traveller’s finger tips. Its key strengths lie in its ability to enforce or encourage travel policy compliance, highlight saving or missed-saving opportunities, and provide various forms of management information. It is not limited to flights, but presents hotel, car and other options to the travel arranger. • SkyGate SpeedFares enables travel consultants to process low-cost and legacy carrier fare searches on a single screen with back-office reporting. • Gottmi MIS provides clients with online management reports gathered from the travel company’s back-office system. Weighell stresses that AeTM does not replace the agency travel consultant, but empowers both travel arranger and agency consultant to become more efficient in processing travel transactions. The travel arranger selects the desired flight/price options and AeTM automatically commences the authorisation and approval routines with the travel agency consultant checking and finalising the reservation. “The introduction of the system requires a well-structured travel policy which in itself brings immediate benefit to client companies.” Sure Corporate is also introducing a new flat-fee membership model for its members, enabling them to bring down process costs. “BSP or turnover-based membership fee structures are at odds with corporate client objectives in a fee-based, commission-free environment. Our new revenue sources reflect the new reality of corporate and business travel – zero commission and increasing use of technology. We believe our new fee model and suite of products provides our members with the correct combination to deliver a transparent, high-quality and cost-efficient travel procurement service.” January 2010 • BUSINESS TRAVEL NOW
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News
In touch with the
ITMSA
The Institute of Travel and Meetings Southern Africa (ITMSA) recently held a technology forum in Johannesburg to keep members in touch with new technologies that are helping corporations deliver better business results. The event had the largest forum attendance to date, with 58 travel buyers and suppliers participating. The next forum will be held on February 18. By Kim Cochrane The Accenture SA team: Christie Olivier, IT director, gave a talk on technology solutions that had enabled – and changed – communication and travel patterns at the company. He is with Linda Basson (procurement lead) and Jacqui Abrahams (travel manager).
Mark Avery, recent past chairman of the ITM (UK & Ireland) and head of Business Services, Infrastructure & Procurement at PricewaterhouseCoopers UK (PWC), spoke about the ITM’s Project Icarus and how PWC had implemented carbon reduction initiatives in its travel management processes. His message: The greenest and cheapest mile is the one that is not travelled! He is pictured here with the ITMSA’s national sales and marketing manager, Sharon Richards-Lund.
Harvey World Travel Benoni’s Gaelene Walsh, travel manager, and gm Michael Millard.
TravelLinck consultant, Nicky Kinnear; Group Five group travel manager, Mandy Diggle; and Ernst & Young travel manager, Felicity Meyer.
Dimension Data South Africa gm Travel MEA, Jenny Kopsch; and Annamarie Myers, Qatar Airways corporate account manager.
ABSA Capital associate principal, regional travel – Africa, Monique Hilton (right), with her colleague, Luis Pinto, operations manager – Africa.
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January 2010 • BUSINESS TRAVEL NOW
Amadeus GTD Southern Africa’s Immanuel Banza (left) and Marisa Dold with Business Travel Now’s Diana Comninos (right). Andrew Shaw, Amadeus GTD Southern Africa solution manager E-Commerce and Development (not pictured), brought the event to a close with a presentation on the future of mobile travel applications.
News
Tourvest expands
into Africa with new technology platform
A
S Tourvest Travel Services expands into 20 African markets during 2010 – primarily Nigeria, Kenya, Angola, Namibia, Zimbabwe and Ghana – it is using the recently implemented end-to-end solution customised by Amadeus GTD Southern Africa for the retail giant’s own businesses as a platform to bring global business travel capabilities to the continent. Tourvest Travel Services ceo, Morne du Preez, says while Tourvest is the only company in SA to have implemented the extensive suite of Amadeus products integrated into a comprehensive system, the long-term partnership is not limited to SA, as American Express Travel Services is rolling out Amadeus Agency Manager (AGM) in 20 countries in Europe. He says the project has enabled Tourvest to offer greater benefits to corporate clients as well as to market new products, such as the newly relaunched product-rich www.travel.co.za project that he hopes will become the “Expedia for South Africa”, as it breaks down boundaries set by preferred partnerships and lets the consumer choose from the over 8 000 products currently available in addition to those accessible through the GDS system. In terms of direct benefits to corporate clients, he says because the Amadeus software solution system is written in a common IT language, it integrates into any system. “This means Amex internationally receives
client information out of our system into their data base via a live data feed, taking out the human error element. We’re also able to offer customers a more standardised set of reports, which can be available by the second day of the month. In addition to improved management reporting, clients will get more automated quality checks and enhanced productivity levels as well as more technical data analysis.” Andrew Shaw, Amadeus GTD Southern Africa eprocurement solutions manager, says Amadeus is currently working on a project that will enhance Tourvest’s technology offering even further. “This unique project will see an integration of our corporate booking engine, Amadeus e-Travel Management, into a spend management system. The development will provide an online travel requisition system that will not only automate the process, but also provide an analysis of the financial risk of the trip before travel takes place. This integration will create a full loop after travel has taken place by reconciling the travel account and allowing corporate travellers to automate expense claims. This collaboration of technology partners will provide corporate customers with an end-to-end solution that optimises the workflow of the entire travel requisition process straight into their own ERP systems.” Amadeus GTD Southern Africa gm, Peter Long, says Amadeus is very proud of this achievement, as it is the first travel-related project of this magnitude on the continent.
Tourvest Travel Services recently won two major awards at the annual Amadeus GTD Southern Africa client Top Awards evening in Johannesburg. In line with the samurai theme, and cutting to the chase with Amadeus GTD Southern Africa gm, Peter Long, are Tourvest Travel Services’ Louis van Zyl (left) who was presented with the prestigious Mozart Award for believing in and promoting Amadeus to the company and industry; and ceo Morne du Preez (right). Tourvest Travel Services was also awarded the 2009 Partner in Technology and Innovation Award.
Looking for the high life? HiLIFE Experiences is offering a unique collection of gift experiences available online, through direct order or at selected CNA stores in Johannesburg, Pretoria and Cape Town. Available in five categories – namely Adventure, Romance, Indulgence, Extravagance and Family Fun, HiLIFE Experiences are suitable for valued employees, incentives, birthdays and anniversaries or as a special indulgence for loved ones, says gm Penelope Schoeman. The products are uniquely packaged in gift voucher format or ‘gift ready’ such as afternoon tea for four, a romantic picnic, breakfast for two, spa packages, flight experiences, sushi making, photoshoots, driving experiences or spending an hour in a commercial jet-airliner’s simulator. For more information, visit www.hilife.co.za, and for more ideas for your incentives, meetings, events and conferences, please turn to p22 for our MICE feature.
January 2010 • BUSINESS TRAVEL NOW
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Power Panel
H
elp or indrance?
‘Do travel managers help or hinder you?’ at an ACTE SA forum last year caused a few chuckles around the room, but no hands were raised to answer the question. No one envied BCD Travel SA md, Kananelo Makhetha, who was invited to respond. So we kept the question in mind and decided to put it to him again with our other panellists .... By Kim Cochrane.
This month’s panel of expertise
Do travel managers help or hinder you?
8
Charlene Rheeder, Oasys Innovations procurement manager
Kananelo Makhetha, BCD Travel SA md
Digby Johnson, TravelWorks founder and owner
More often than not the absence of a travel manager means there is no one with time to ensure the organisation’s expectations are communicated effectively, says Charlene Rheeder. “And it’s no secret how that ends up! Travel managers most certainly help and are employed for that specific reason.” Kananelo Makhetha agrees: “There are travel managers who really help TMCs improve the quality of services provided. They work with TMCs as joint partners in achieving the objectives of travel programmes.” Taking into account the feedback and advice from some travel managers, Makhetha says over time the TMC has been able to improve the quality and accuracy of its travel management information reports. “We’ve also been able to refine our business continuity plans as a result of closer cooperation with travel managers.” Rheeder admits that travel managers can be under tremendous pressure, especially in these trying times with regard to cost containment. “Unfortunately not everyone handles the pressure well. Things can be said or done in the heat of the moment. Emotional intelligence is key in these situations.” Makhetha similarly highlights the case of “control freaks” who view the TMC as a threat. “Review meetings then deteriorate into unnecessary and unproductive
January 2010 • BUSINESS TRAVEL NOW
competition about who knows best about travel.” Travel managers tend to take the path of least resistance and often fall into the “quagmire” of third-party relationships, says Digby Johnson. “There are numerous examples of how travel managers have assisted the suppliers and TMCs to perform, but there are as many incidents where the travel manager actively alienated suppliers based on a hidden agenda.” Johnson adds: “It’s the same old rhetoric… most suppliers reward retail TMCs for support of their products so when a travel manager intervenes and dislodges that relationship, then I guess it can be viewed as a hindrance. If the travel manager falls for the combined ‘schmoozing’ and marketing efforts of the two parties, then yes, I guess the travel manager is a great help to the relationship.”
Has the supply side kept up with the advancement of buyers? And what about SLAs in this relationship? Clear communication and managing expectations is essential to ensure suppliers keep up while buyers leverage volumes, realise cost savings and streamline processes, says Rheeder. There’s been a definite transformation within certain travel suppliers, says Johnson, towards building long-term platforms for cooperation between clients and service providers. “This unique engagement is a hybrid of common
commercial values based on transparency, trust, knowledge sharing and a genuine desire to work towards negotiated, mutually beneficial solutions.” To enable this engagement, SLAs – if mutually beneficial – are very effective and important, says Rheeder. Makhetha agrees: “They are good in ensuring that clients’ expectations are understood upfront and provide the basis for client and TMC staff training prior to the commencement of the service. It is also critical that the SLA includes undertakings by the clients towards the TMC. A good SLA is not one-sided.” Clear joint objectives, roles and responsibilities defined in a good SLA lead to less confusion and good synergy of joint efforts, he adds. Johnson highlights that an SLA that is implemented correctly is a fantastic yardstick for both the supplier and client. “However, any agreement that does not include financial penalties for non-performance is nothing more than a paper tiger – i.e. nonfunctional and insignificant.” Travel managers, he says, should be critically aware of a supplier who is hesitant to sign an SLA that includes penalties.
Are travel managers open to better configurations and balances of service, technology and costs? The economic downturn of 2009 provided a good opportunity for joint reviews of service
Power Panel
configurations, leveraging on the current technological advances, says Makhetha. “Travel managers are listening and are considering cost-saving service options, which they would have refused two years ago.” Their acceptance of these improvements depends on the knowledge base of the travel manager and the finances available at the organisation, adds Johnson. “Too often travel managers get bamboozled by the technical jargon of travel and opt for a system that will cost them more in the long run. The TMC on the other hand is wanting to implement new technologies to reduce headcount and improve productivity, but this rarely happens.”
How to avoid costly mistakes… Relationship management is key to avoiding costly mistakes, advises Rheeder. “The travel manager is still a relatively new role in the corporate environment and quite often there is a need to rely on the experience of partners.” Focus on the bigger picture, suggests Makhetha. “What are the objectives of the company? What is its reason for existence? How can the travel programme assist the company to achieve its objectives? And, more importantly, what are the objectives of the travel programme? What are the roles and expectations of each party?” Johnson says since travel managers are accountable for effective management of the portfolio, it falls to them to object and query process where an initiative has a “high potential for risk”.
“The travel manager is responsible for guiding the supplier in terms of the organisation’s travel objective – a leadership role. The bigger sin is when the travel manager abdicates the responsibility of intervention. To avoid mistakes: don’t take the supplier’s word as gospel – involve as many free-thinking partners as possible. Get independent advice from someone who doesn’t have a vested interest in the application of a specific product or service.”
How involved in daily travel operations does a travel manager have to be? Makhetha believes a travel manager’s involvement depends on the set-up and experience of that manager. “Some travel managers have industry experience and are able to use the data from TMCs to handle supplier negotiations.” There’s no standard that can be applied, says Johnson. “A travel manager’s involvement in the in-house agency is directly proportionate to the number of complaints received as well as the organisation’s need to contain travel costs, so each company would be different. What we do know is that if travel managers take their foot off the gas, things go wrong very quickly!” ■
Next month our Power Panel looks at MIS – are we getting enough quickly enough?
There are travel managers who really help TMCs to improve the quality of services provided. And there are control freaks who see the TMC as a threat, where review meetings deteriorate into unnecessary and unproductive competition about who knows best about travel. – Kananelo Makhetha
A service level agreement that is implemented correctly is a fantastic yardstick for supplier and client. However, any SLA that does not include financial penalties for non-performance is nothing more than a paper tiger. – Digby Johnson I believe cost-containment is about supplier relationship management; supplier relationship management is about managing expectations; managing expectations is all about communication. Get that right and you are 90% there! SLAs are an excellent place to start. – Charlene Rheeder
January 2010 • BUSINESS TRAVEL NOW
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Oilingthe
Pics: tijuana huysamen
Profile
wheelsof travel BTN speaks to Chevron’s dynamic Cape Town-based regional travel manager, Hlumelo Sobekwa, about the unique travel management requirements of the global oil giant and meeting the particular challenges of doing business in Africa. By Hilka Birns.
H
LUMELO Sobekwa, Chevron’s regional travel manager for Africa, the Middle East and Pakistan, is a ‘black diamond’ in new South African terms. But to label him so would mean pigeonholing a man who, from a childhood in the Transkei, has made it to the top of his profession through hard work, force of personality and buckets of talent and enthusiasm. These were just some of the qualities spotted early on by travel industry stalwarts, who became his mentors and set him on his path to success. One of these was Pierre Dubois, now Cape
10 January 2010 • BUSINESS TRAVEL NOW
manager for the new Travel Assignment Group (TAG) and then senior sales & marketing executive: coastal regions at South African Airways. He gave Sobekwa – fresh out of UCT with a travel-related business degree and a thesis on SAA’s turnaround strategy under his wing – his first break into travel. As SAA restructured, first under Coleman Andrews and then under André Viljoen, Sobekwa worked in Cape Town in various sales and marketing positions with particular focus on corporate and Government relations and coastal sales. He then left travel and joined Naspers, where he looked after advertising sales for the Sunday newspapers and public sector accounts
Profile
in all areas except Gauteng. This is where he met Warren Tanner-Ellis, a man he credits with having provided the defining guidance and mentorship for his career. Tanner-Ellis was tasked to set up Mweb CommerceZone, the travel management division of Mweb that is owned by Naspers. He appointed Sobekwa as travel manager to look after Parliament and Naspers businesses. “This was probably the biggest learning curve for me. I really got to understand how travel management companies operate. The Parliament account also gave me an insight into travel technology because we ventured into unchartered territory. It was very exciting and has left me with an enduring passion for technology in travel.” After a short stint with Tourvest in account management, the opportunity arose to take up the newly created position of regional travel manger Africa, Middle East and Pakistan at Chevron Africa-Pakistan (Pty) Ltd.
The different aspects of the oil business Chevron is the second-largest energy company in the USA and among the largest corporations in the world, based on its market capitalisation. It has business activities in more than 100 countries and a diverse labour force of about 62 000 people. It invested about US$22.8bn (about R160bn) in capital and exploratory expenditures in 2008. Travel management at Chevron involves dealing with two totally different sides of the oil business. There is an ’upstream’ and a ’downstream’ component and each has completely different travel management needs. The bulk of the business is ’upstream’ and involves the oil exploration and production teams, who travel to far-flung places around the world. The ’downstream’ side involves personnel dealing with the refining, marketing and transportation of the product, such as the sales and marketing teams, stores and the refineries.
How travel management works at Chevron Global travel management at Chevron is split into five regions involving 150 countries: North America (USA and Canada); South America; Africa, Middle East and Pakistan; Europe, Russia and Kazakhstan; and Asia Pacific including Australia. A regional travel manager, such as Sobekwa, oversees each region. Carlson Wagonlit Travel (CWT) holds the global TMC contract with Chevron and the oil giant has a number of global contracts with airlines. Chevron negotiates directly with the airlines because it leverages its huge volumes of travel globally. Allowed routes of travel are driven by its global airline contracts, which are continuously reviewed for competitiveness. A global travel manager headquartered in San Ramon in the US sets Chevron’s global travel policy. A global air category manager is responsible for Chevron’s global air travel policy, which sets the perimeters for all regional air policies. “This ensures that all our regional contracts with suppliers tie in with our global agreements,” he explains. Coupled with that is a global hotel strategy that is filtered down to the various regions. In Africa, Chevron has partnered with local hotel brands, while global brands are more prevalent in the Middle East and Pakistan. All regional travel managers report to a global operations manager based in the US, who oversees the regional implementation of the company’s global travel management strategy. “As regional managers, our responsibilities cover both procurement (from a contracting perspective) and operations,” says Sobekwa. Leveraging on Chevron’s global contracts with suppliers, regional managers work with local procurement managers in the various countries to draw up regional contracts. For example, Sobekwa’s first task was to ensure that all Chevron travel in his regions of oversight was bought from the same suppliers/partners and to put regional contracts in place.
Unique travel requirements Challenges “Time efficiency of travel and availability are important for the upstream side of the business to prevent loss of production. Cost is not always the driver. The downstream side is more corporate and therefore more cost conscious,” Sobekwa explains. Both streams of travel have declined because of the recession. Due to the nature of the work and conditions often involving rugged terrain, off-shore exploration and security concerns, Chevron has what it terms a Duty of Care to its staff, especially in Africa. “We have to be able to track our travellers at all times and have partnered with a company that is able to provide us with that kind of reporting,” he says. “Data tracking is also paramount for use in analyses, trending, negotiations with suppliers and compiling savings reports for management in the different streams of business.”
One of the biggest challenges Sobekwa faces is the lack of infrastructure in some African countries. “The challenge is to take our global processes into an environment where there is no infrastructure. This necessitates the creation of new solutions and that is exciting.” Understanding the different regions and different countries, all with distinct local conditions and cultures, presents another challenge. In many African companies, travel management has traditionally rested with the HR or finance departments and long-standing relationships have been forged with local suppliers. In some companies, there is no mandated travel policy at all. The challenge for Sobekwa as regional manager is to introduce US-centric products, a process often viewed with suspicion. “My biggest challenge up- and
downstream, is to get people’s trust, motivate my business case and to get them to own their travel policy. The biggest obstacle is that people are reluctant to share knowledge or assist. It is slowly changing as we try to define roles and responsibilities. I try to reassure them that their operational roles are not under threat, but that I’m there to improve processes, to introduce new technology which is going to improve efficiencies and that I’m there for strategic purposes.” Another major challenge, he adds, is the lack of one, strong global TMC in Africa. “Different TMCs are prominent in different countries, but none of the global TMCs have really broken into the continent yet. The challenge for us is how to find a solution around that, because we’re talking about huge volumes of travel specifically in those countries. I would like TMCs who work with companies that have businesses outside of South Africa to have a better understanding of what business in Africa is like.” Chevron is recommending a downstream travel ban within South Africa for the period of the FIFA World Cup plus two weeks before and after the event. Upstream travel to Angola and Nigeria is not expected to be affected.
turn to page 12
“The challenge is to take our global processes into an environment where there is no infrastructure. This necessitates the creation of new solutions and that is exciting.”
January 2010 • BUSINESS TRAVEL NOW
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Profile
I really love people and that’s why I love this job.
Successes Sobekwa lists as his recent successes: • The implementation of an effective travel management strategy and finding good partners in the Middle East, first in Dubai and then in Qatar, Bahrain and Saudi Arabia. • A proposed tailor-made solution for Nigeria involving a 24/7 agency service centre that looks after Chevron’s travel needs there and which is sure to become an example for other oil companies in the region. • Sobekwa in July 2009 launched a Chevron managed and updated travel web page that consolidates all information specific to countries in his regions. The first countries covered were South Africa and Egypt and roll-out is continuing. • Reviewing all processes, refining them, eliminating bottlenecks and finding logistical solutions have resulted in recessionnecessary savings. For example, costs have been brought down regionally by changing the rotation patterns of upstream travellers to start at the point from where it is the most economical. Downstream, all business units had to cut costs and this was done through consultation with preferred partners in key markets. • Sobekwa says Chevron’s travel management programme does not dictate to its users to down-class their travel or accommodation. “However, while we do not mandate, I believe our management reports and our reporting at regional level do provide accountability.” He says the company advises its employees who its key partners are and then relies on the Chevron ‘philosophy of integrity’ to help them make the right choice. “We give you the right business tools, you must make the right decisions. Our job in this recession has been to make it clear to people that they save costs by sticking to policy.”
New initiatives in technology • Chevron has implemented an online global booking tool that went live in the USA in February 2009, followed later in the year by the UK and Singapore. South Africa and Australia will follow suit this year. • The company uses CWT’s online profile management tool, which assists its internal billing. The tool places the onus on travellers to update their details. • CWT’s Policy Messenger tool allows the company, in a non-punitive way, to inform policy offenders of what they have done wrong. • Sobekwa plans to set up a CWT call centre in Cape Town this year for servicing Southern Africa.
Personal
snapshot
“I really love people and that’s why I love this job. I’m passionate about the travel industry and I’m fortunate to have had mentors who have instilled values in my life. I have two boys, who when they were born, changed my outlook on life. My family is most important to me. I’m a sports fanatic and I attended UCT on a sports bursary (hockey). I love the sea and the outdoors. I relax with my kids and I love to read, particularly autobiographies, because you can learn life lessons from them.” On the ball at Total Sports, Bayside Mall, Hlumelo Sobekwa is a sports fanatic.
Words of advice • Always consider the numbers, because they tell you what is happening in your organisation in terms of trends and behaviour. Understanding them can help you implement corrective measures. • For travel into Africa, it’s important to have properties vetted and inspected to ensure they meet your company’s standards. • Instead of using a ‘stick’
12 January 2010 • BUSINESS TRAVEL NOW
approach to drive certain buying behavior, give travellers cost-effective options and show cost-saving opportunities on missed savings. If managers, supervisors and travellers see the cost impact of their decisions when procuring travel (e.g. when changing tickets) they are likely to change their behaviour. • You need to have a transparent and collaborative relationship
with your key suppliers and a common understanding of each other’s business i.e. each other’s strategies, cost drivers and, importantly, business ethics. This helps in tough times and also creates win-win partnerships. • Always formulate a business case or show best practice scenarios to get senior management buy-in into new cost-saving initiatives. ■
Ernst Du Plessis
MYTH
Mythbuster
All African airlines are unsafe
By Sue Lewitton
REALITY
W
ITH the European Commission banning 114 African airlines from operating in its airspace and the International Air Transport Association (Iata) reporting high aircraft accident figures for Africa, it is easy to see how the continent has established a bad reputation when it comes to aviation safety. The latest Iata figures show that Africa had an accident rate that was 2,6 times worse than the world average of 2,12 hull losses. But, as gloomy as the figure may appear, this actually extends a year-on-year trend of significant improvements. In 2005, the Africa rate was the worst in the world at 9,21. Gavin Simpson, md of Holiday Holdings, a company that represents a number of African airlines, believes that Africa’s bad aviation reputation stems from non-
Iata charter and private airlines that operate primarily in central Africa. “These airlines’ safety procedures and maintenance monitoring don’t meet internationally recognised standards,” says Simpson. “Unfortunately, when these carriers are involved in aviation accidents, they are put in a basket together with all the other carriers on the continent for the purpose of collating the Iata and International Civil Aviation Organization (Icao) annual global aviation accident statistics,” says Simpson. He says this leads to the perception that the safety of all African carriers is questionable. Simpson goes on to say the reality is that all of the major African carriers, most of which are state-owned, have an excellent domestic, intra-Africa and international safety record, as they are required to comply with
the same safety audit procedures and requirements as other global carriers. “Many of the major carriers on the continent such as South African Airways, Kenya Airways, Ethiopian Airlines, Air Madagascar and Air Mauritius, for example, have in fact achieved their Iata Operational Safety Audit (Iosa) certification,” he adds. “Iosa is regarded as the highest internationally recognised benchmark for safety level standards within the airline industry.” Simpson says airlines that have achieved Iosa certification should actively market the fact whilst explaining to consumers what the accreditation actually stands for in an attempt to combat the myth that all African airlines are unsafe. “This is a continual challenge for the really reliable and safety conscious African carriers.” ■
The safety procedures and maintenance monitoring of non-Iata charter and private airlines that operate primarily in central Africa don’t meet internationally recognised standards.
January 2010 • BUSINESS TRAVEL NOW
13
How To
How to
improve compliance cost savings
&
for 2010
Rules are not always made to be broken especially in the world of the business traveller where non-compliance can hurt the company financially, writes Liesl Venter.
Travel policies should not be complex and complicated because then they are just ignored. Simplicity, consistency of application and communication are key. – Alan Reid
Ongoing feedback and communication with workable solutions are critical from both the TMC and the company travel manager. – Ingrid Hamman
E
CONOMIC slowdown, recession, global economic downturn. These are all phrases businesses came to know well in 2009. Without the effective management of a travel policy, companies could be faced with excessive and unnecessary travel expenditure, say the experts – a definite no-no in the economic recovery in 2010. “Policy compliance and adoption are critical to managing a successful travel programme,” advises Ingrid Hamman, head of business development – SA for Wings Corporate Travel. Says Warren Tanner-Ellis, group travel manager for MTN: “Compliance to travel policy is important especially because of the effects of the recession. The second factor is the organisation’s leadership response or approach to saving and thirdly the attention that is given to the daily operational management of savings – all of these factors impact on cost saving.” Linette Mulder, Edcon corporate travel manager, agrees: “It’s extremely important to ensure compliance of the travel policy at all times otherwise the exception becomes the rule.”
How does one ensure compliance and cost savings? Alan Reid, BP Southern Africa commodity manager – services, says it’s important to remember the four C’s: “Consult, communicate, consistency and control with all your travellers. This is probably the best way to ensure travellers are compliant at all times.” Another essential aspect is to keep
14 January 2010 • BUSINESS TRAVEL NOW
a travel policy simple, he says. “Travel policy should not be difficult to adhere to. Sometimes travel policies have far too many layers. They should not be complex and complicated because then the policy is just ignored. Simplicity, consistency of application and communication are key. For us at BP, it is an A4 page of copy and everyone knows it and the TMC enforces it. They can’t be expected to make or interpret policy, as this leads to inconsistency and problems.” A key element here relates to the empowerment of the TMC. “The TMC must be empowered to implement the policy, but never expect them to make the policy.” Hamman believes if there is adaption of policy and internal inefficiencies as well as a lack of support from the TMC to support and report back on all non-compliance of policy, it will contribute to increased costs and a very badly managed travel programme. “Ongoing feedback and communication with workable solutions are critical from both the TMC and the company travel manager. That is how you bring about compliance in the end.” While Hamman reiterates the necessity of using internal communication, having the company’s support and including very clear instructions on the travel policy to ensure adoption, it is also very valuable if the travellers contribute to compiling the policy, with the clear objectives of the policy outlined from the beginning, as this allows for shared ownership. “It is important that policy is fair to the travellers and the company, a win-win situation, and that policy has buy-in from end users.”
There also needs to be management directives implemented to assist with policy compliance. “Policies that are fair and reasonable lead to compliance,” says Reid.
World Cup a challenge As the country gears up for the FIFA World Cup, the next few months are going to see an influx of travellers on local shores, with challenges anticipated in confirming last-minute air travel, car rental and accommodation. If a business wants to see compliance with its travel policy, it is going to have to take these factors into account and advance planning will be essential. “Poorly disciplined travellers who are late arrivals, for example, will have to be managed,” says Mulder. “Trips will have to be planned in advance and pre-approval of suppliers, for instance, will be very important.” Add to that proper planning and streamlined approval processes. “It will be intriguing to watch how companies manage their travel requirements over the World Cup period in that this event could result in a significant downturn in South Africanbased companies’ regular business travel spend,” says Tanner-Ellis. “This will mainly be due to the lack of availability and the excessive cost. What this period will also do, however, is perhaps help companies identify what travel is strictly needed and what can be left until normality returns.” Hamman believes 2010 will need continuous diligence with respect to costs, efficiency and policy compliance to effectively manage all travel associated costs. ■
Destinations
January 2010 • BUSINESS TRAVEL NOW
19
Deal detective
Top10 specials
Linda van der Pol, Travelinfo’s editor, is our Deal Detective, bringing you great specials from Travelinfo, the online travel information system in daily use by travel agents all over SA. Just book through your TMC and tell the consultant it’s a Travelinfo special. To get connected, e-mail lindav@nowmedia.co.za.
1. SINGAPORE
Singapore Airlines. Fly on the SQ A380 Suites from London, Sydney, Melbourne, Paris and Tokyo up until March 31 and get a complimentary one-night stay at the Raffles Hotel in Singapore. Offer also includes return airport-hotel limousine transfers, full buffet breakfast, complimentary in-suite internet access and 40% discount for jet lag spa treatment. Accommodation must be utilised by March 15.
3. AUSTRIA Sure Tours. Zell am Ziller – rates are from R8 165 pp sharing. This includes seven nights’ accommodation with breakfast and dinner, private transfers ex-Munich and insurance. Six days’ ski pass and rental is R3 530 per person. Offer is available from January 2-22 and March 6-27.
5. NIGERIA
Arik Air. Special fares to Lagos, Abuja and Port Harcourt. Return airfare is R1 190 ex-Johannesburg and excludes airport taxes. There is no minimum stay, but all travel must be completed by January 31.
6. CARIBBEAN
Cruises International. Seven-night Eastern Caribbean cruise onboard Celebrity Solstice – rates are from US$ 584 pp sharing. Cruise is roundtrip Fort Lauderdale. Rate includes onboard accommodation, onboard meals and entertainment. Rate excludes port charges and gratuities. Departure dates January 10, 24; February 7, 21; March 21 and April 4.
7. DUBAI
Sphinx Travel and Tours. Dubai specials from R5 750 at the Ibis Hotel and R8 286 at Taj Palace Hotel. Package includes return flights ex-Johannesburg, three nights’ accommodation with breakfast, land transfers between Abu Dhabi and Dubai and handling fee. Value-add: free Dubai entry visa, free 4x4 desert safari with BBQ dinner. Rates do not include taxes, which are about R1 650 per person. Offer subject to availability.
8. ZANZIBAR
African Encounters. Seven-night packages are from R7 523 pp sharing. Rate includes return flights ex-Johannesburg, airport taxes, all transfers, accommodation at Kichanga Lodge with breakfast and dinner. Rates are valid from January 12 to March 29.
ing.
0 pp shar 2. MALTA ecial – rates are from R11 95 sburg, four ne T. Winter sp ts ex-Johan
IT fligh udes return Radisson Blu on Package incl the five-star at n io at od uding collisi mm car hire incl B e nights’ acco up ag ro ile G ’ m five days unlimited Hotel & Spa, age waiver, m e at da R t ). ef ly th ver, days on damage wai Tours (Mon aring. Valletta City t R600 pp sh ou ab e ar and half-day ch hi w s, xe . ta ort ry 28 excludes airp om January 3 to Februa lid fr va is l ia ec Sp
4. ZAMBIA
Sun International Dreams. Pay for two nights stay for three – rates are from R3 905 pp sharing. Package includes return airfares ex-Johannesburg, return airport-hotel transfers, three nights’ accommodation at the Zambezi Sun Hotel, breakfast and dinner daily, four days’ travel insurance, unlimited access to the Falls. Rate does not include airport taxes, which are about R1 475 per person. Add-on fares ex-Cape Town and Durban are also available. Offer is valid for South African residents from January 3-31.
9. MAURITIUS
Naiade Holidays. 35% early bird discount – rates are from R12 400 at the four-star Tamassa and R12 600 at the five-star hotels. Rates are pp sharing and include return flights ex-Johannesburg, airport-hotel transfers, seven nights’ accommodation with dinner and breakfast (except Tamassa, which is all inclusive), free full day excursion to Ile des Deux Cocos (including transfers, lunch and local drinks). Special is valid from January 5 to October 31. Rates exclude airport taxes and airfare surcharge, which applies for specific travel dates. A 21-day advance purchase is required.
10. BANGKOK
Avocatur. “Unbeatable Bangkok” special from R5 999 pp sharing. Special includes return airfare ex-Johannesburg, four nights at Chada Hotel in a deluxe room with buffet breakfast. Rate excludes airport taxes, which are about R1 750 per person. Special is valid until January 31. ■
DISCLAIMER: All specials are subject to availability, currency fluctuations and seasonal surcharges. 16 January 2010 • BUSINESS TRAVEL NOW
Destinations
January 2010 • BUSINESS TRAVEL NOW
19
Destinations
Windhoek,
Namibia
Windhoek may be the biggest centre in Namibia, but it retains the charm of what visitors would expect from a small town. Max Marx brings you this guide.
Getting there
Fast facts
• Air Namibia offers either three or four flights a day, except for Sundays when there are only two flights from Johannesburg to Windhoek. Four flights are available on Tuesdays and Thursdays. From Cape Town, Air Namibia offers a double-daily service seven days a week. • SAA operates four flights a day between the two destinations five days a week, with three flights on the other days. • BA/Comair offers flights twice-daily seven days a week between JNB and WDH. • Windhoek has two airports. International flights fly into Hosea Kutako International Airport, about 45km from Windhoek. Windhoek Eros Airport is the operational base for Air Namibia’s domestic flights and also serves the air charter industry. It is located 5km from Windhoek’s CBD.
• South African passport holders do not require a visa. • Namibia dollar (N$) is the currency although rands are widely accepted and the two currencies’ values are pegged. • Official language is English although Afrikaans is widely spoken. • Time: GMT +1 hour (April to September); GMT +2 hours (September-April)
Travel in and around Windhoek • Getting from the airport: Travellers can hire a car with Avis, Europcar, Tiger Car Rental, Argus Car Rental, Budget Car Rental and Tempest, all represented at Hosea Kutako International. • Driving around Windhoek is popular with corporate travellers, as roads are easy to navigate and the streets well-marked. Self-drive is an excellent option. • Many hotels provide shuttle buses to/from the airport and metered taxis are also available.
18 January 2010 • BUSINESS TRAVEL NOW
Accommodation and conferencing There is a wide variety of accommodation facilities to suit business travellers, from B&Bs to five-star establishments. Conference facilities within the city are many and varied. Popular conferencing options include the Safari Court Hotel, which has the largest conference facilities. Its largest venue can accommodate 2 000 delegates cinema-style and there are several breakaway rooms. The centre has a high-tech sound and lighting system. The Windhoek Hotel & Country Club can accommodate up to 760 people cinema-style and the NamPower Convention Centre up to 650 delegates. Both of these also provide good accommodation alternatives.
The work is done, now what? Several tour operators offer city tours in Windhoek, ranging from a few hours to full-day excursions: • A walking tour of Windhoek is a good way to learn about the city’s colonial past. • A tour of Namibian Breweries, home of Windhoek Lager. Brewery tours are conducted Mondays to Thursdays and must be booked timeously. • Katutura Face-to-Face Tours offers three-hour guided township tours of Katutura, on the outskirts of Windhoek. From iron shacks to upmarket houses, it is a diverse and lively place to visit. • Outside the city, popular excursions include visits to the Gross-Barmen Hot Springs Resort near Windhoek en route to Okahandja. • The Daan Viljoen Game Park, 30km west of Windhoek in the Khomas Hochland, offers a relaxing day out for day visitors and weekenders. One can enjoy day hikes through undulating hills, spot game and 180 different bird species. There’s also a two-day 32km hike for the adventurous. • Arnhem Cave, south-east of Windhoek’s Hosea Kutako International Airport, has the longest and most impressive cave system in Namibia. • For those with a few days to spare: Swakopmund, Namibia’s adventure capital, is highly recommended to enjoy quad biking, 4x4 adventures and sandboarding. A visit to Lüderitz with its stunning architecture and seaside charm is another great option. ■
Destinations
Chicago, US Chicago was named the ninth most popular city in the US for overseas visitors in 2008. Despite this, the city has been battling to maintain its reputation as a world-class convention destination. Sue Lewitton takes a closer look at why this may be.
Chicago reviews its convention business
W
ITHIN the short space of one week, Chicago’s convention industry was dealt a major blow with the loss of three major trade shows on the grounds of the high cost of business in the city. Convention statistics from McCormick Place, North America’s largest convention centre, show that almost a third of its business has been lost in the past ten years. Attendance at McCormick Place has dropped from 3m in 2001 to just 2,3m in 2008. In response to the slump, Chicago’s convention industry leaders have vowed to develop the necessary solutions to keep Chicago as a top convention and trade show destination. Metropolitan Pier and Exposition Authority (MPEA) and the Chicago Convention and Tourism Bureau (CCTB) officials, labour leaders from all convention-related trades, show contractors and hospitality leaders along with government representatives have vowed to review all aspects of doing convention business in Chicago. John Gates, chairman of the board of MPEA, said: “We are bringing all of Chicago’s
convention industry leaders together to make unified decisions to dramatically improve all aspects of the way we do business. We are trying to turn lemons into lemonade – we get it, we understand our customers’ concerns and we are going to be aggressive in finding a solution together.” Juan Ochoa, ceo of MPEA, added that they would look to revise Chicago’s business model to determine how the city could be more competitive against other convention cities that had an advantage over Chicago because their financial structures allowed them to lower their cost and undercut Chicago pricing. “Unlike many of our competitors, no government dollars fund any aspect of our operating budget. We rely 100% on our show revenue to operate our convention space, which puts us at a disadvantage,” said Ochoa. As an aside, Chicago’s hotels have been the hardest hit by the global economic recession when compared with other cities in the US. According to figures from STR Global, occupancy declined by 19,7% and RevPAR by 33,9% in the first three quarters of 2009.
■ Crowne Plaza Chicago gets a green facelift THE Crowne Plaza Chicago O’Hare Hotel and Convention Centre has just completed a multi-million dollar renovation of all its 503 guest rooms and suites with an emphasis on high-end design and environmental sustainability. The hotel, located a few minutes away from Chicago’s O’Hare International Airport, has upgraded its rooms to feature handcrafted custom furniture, high-end fixtures and finishes. The rooms also feature amenities such as a refrigerator, in-room safe (able to accommodate a laptop computer), cordless telephone, 32-inch flat screen HD television, wireless high-speed internet access and Roomlinx interactive entertainment solution. All guest rooms also have new bedding, guaranteed wake-up calls, drape clips and amenities such as eye masks, ear plugs and lavender spray to ensure a good night’s sleep. In terms of environmental sustainability, almost all the metal from the demolition and construction of the hotel was recycled. The remodeled guest rooms now incorporate energy reducing heat systems and high-efficiency plumbing fixtures. ■ New-look suites for Four Seasons THE Four Seasons Hotel Chicago has just completed a redesign of its one- and two- bedroomed superior suites. The rooms were
designed by Pierre-Yves Rochon, known for his design of the interiors at the Four Seasons George V Paris. The rooms now feature living rooms with sofas, dining tables, workstations and separate bedrooms offering views of Chicago’s skyline and Lake Michigan. Many of the 39 suites also include separate dressing areas with full-length mirrors and vanities as well as a butler’s pantry. All suites feature a full bathroom, a guest powder room with shower, two flat-screen televisions with high-definition channels and wireless internet access. ■ New security system at convention centre CHICAGO’s Metropolitan Pier and Exposition Authority (MPEA) and the Chicago Office of Emergency Management and Communications (OEMC) have unveiled a new state-of-the-art command centre at Navy Pier, one of the city’s premier convention destinations. The command centre will be linked to hundreds of surveillance cameras as well as the city’s 911 centre. This is the first phase of a project to extend the coverage of security cameras along Chicago’s lakefront and waterways. Phase Two of this project will include coverage around other lakefront landmark venues, such as McCormick Place, Soldier Field as well as the city’s kilometres of beaches and harbours. ■
January 2010 • BUSINESS TRAVEL NOW
19
On the radar
MICE –
What’s new?
It’s a new year, with the travel industry hoping for a new start. But effects of the economic recession still plague the industry and nowhere is this more evident than in the MICE sector. Natasha Tippel reports.
T
HERE is huge optimism in the travel industry for 2010. It’s a new year with exciting opportunities, especially in light of the FIFA World Cup. Travel buyers and suppliers are hoping to put their economic frustrations behind them, but there is no denying the industry still faces tough times, battling the effects of the economic recession. In keeping with the trends
ushered in by the global credit crunch, there is a very obvious decline in budgets and spend within the MICE sector. “Everyone is working smarter, harder and toward tighter budgets,” says md of The Event Production Company, Karen Ashwin. One way in which companies are saving is by cutting down on outsourced MICE business and relying on inhouse resources, notes Ashwin.
22 January 2010 • BUSINESS TRAVEL NOW
Marketing manager of Rani Resorts, Michèle Abraham, says: “A lot of companies have cut back on their MICE spend as a result of the recession, especially where conferences were being held outside South Africa. There has been a trend of some bigger companies incorporating or building their own inhouse conference venues to cut back on this sort of spend long-term and there is more demand to seek local and more cost-effective venues and destinations.” Another way in which corporates are reducing their budgets is by going to more cost-effective destinations, making the duration of trips shorter, and going to costeffective hotels, says gm of corporate communications for HRG Rennies Travel, Lynda Green. Green also notes a recent trend whereby clients are putting trips on hold or waiting for the last minute before confirming groups. “Lead times are consequently getting shorter and shorter.” Manager of Visions, Sue Marillier, agrees: “Last-minute bookings can either work in your favour (benefitting from specials) or alternatively you may have a much higher spend on air travel.” On the conferencing front, numbers are also down. Gm of Bytes Business Park and Conference Centre in Midrand, Marlene Haig, says: “A noticeable trend is that although organisations are still booking conferences, the group numbers have been downscaled.” Another trend in conferencing is the listing of preferred professional conference organisers (PCOs) in order to increase transparency in MICE spend. “Previously, anyone could
masquerade as a PCO. Now buyers and suppliers are looking at these people more closely,” says national sales and marketing manager for ITMSA, Sharon Richards-Lund.
Green trends “Worldwide there’s been an increase in virtual meetings and conferencing through media like conference calls, video and Skype,” notes Ashwin. “It’s interesting to note this trend to travel less also fits in perfectly with the green lobby to reduce carbon footprints, so there isn’t much chance that things will just revert to the way they were before the economic downturn. The way we live and do business has changed – not only in the short term, but also in the long term. While there will always be a place for face-to-face meetings, I do believe that these will be more carefully considered than before.” Marketing and reservations manager of Tau Game Lodge, Renate Oostmeijer, agrees: “Companies – while visiting the lodge – want to get involved with our community development projects and conservation projects, such as the Tau Foundation and Tau Tree Fund.” Marketing and sales manager of CSIR International Convention Centre, Bronwen Cadle, says environmentally friendly facilities, products and technology services such as internet streaming and videoconferencing, which assist organisers to reduce the immediate impact of the event and the total carbon footprint, also assist in reducing costs of events.”
turn to page 24
Destinations
January 2010 • BUSINESS TRAVEL NOW
19
MICE in 201 THE 2010 FIFA World Cup will present the MICE sector with opportunities and challenges, as corporate travel is expected to slow during the major sporting event. “This landmark event offers a myriad business and social networking opportunities across the board – and the competition will be fierce in terms of attracting the desired, targeted guests, audiences and markets to a particular company or client’s functions and events,” notes Ashwin. “The deciding factor in the success of these events and activities lies in customer relationship management and clever marketing.” Green believes availability will be limited for the corporate activities of local clients. “We are encouraging our clients, who have events over this period, to book early or if possible to change the dates of their events to before/after the World Cup to avoid the price increases over this period.” Md of Club Med SA, Elaine Youngleson,
agrees: “There will be companies wishing to travel over this period, however, their travel will be limited by airline outbound availability and expensive fares versus hotel and resort operators who will have beds.” Visions is already seeing a substantial drop in local conferences and events during the lead up to and for the duration of the World Cup period. “Local companies aren’t able to afford hosting events and conferences during this period due to high supplier rates, with most suppliers charging between seven to 30 days rental period for their facilities and equipment,” says Marillier. “Corporates will have to think of alternative means of interacting during the World Cup. But whether videoconferencing will replace human interaction after the World Cup is debatable. As South Africans, we are still traditional in the way we conduct business. Videoconferencing is the way of the future, but people still look for personal interaction.”
Penny pinching tips! “As a result of the recession, there are currently many hotels and airlines offering incredibly good specials. My advice to travel buyers would be to keep your brief open and be flexible so you can take advantage of these offers.” – Lynda Green “Be imaginative, think local and discover the fabulous venues and options available to us on our doorstep. South Africans are not only resilient; as a nation we’re also versatile, enterprising and talented – let’s use what sometimes limited resources we have to our best advantage!” – Karen Ashwin “When placing bookings well in advance, in particular when it comes to multiple bookings, a discounted rate is often negotiable. One can save/cut-back on certain catering costs and still maintain an acceptable high level of product offerings.” – Marlene Haig “Loyalty programme miles or points earned from regular travel can be used towards conferencing.” – Sharon Richards-Lund “Group discounts apply; the more people who are travelling in a particular group the more affordable and negotiable the rate becomes.” – Renate Oostmeijer
24 January 2010 • BUSINESS TRAVEL NOW
“Negotiate with suppliers. Empty beds and empty seats can’t be re-sold.” – Michèle Abraham “Don’t affect your revenue stream, think twice – a company can cut back on its staff Christmas parties’ spend, but they should not cut back on functions that will guarantee revenue such as client function days, exhibitions and launches. Be discreet in your spending – in these hard times, companies must project the perception of ‘watching their cents’. Be clever in your event and incentive spend, think simple yet effective and save the French champagne and crystal glasses for when the economy turns. Timing is everything – avoid peak times for your events or incentives, move deadlines forward to avoid cancellation fees and secure exchange rates by means of forward buying when the rand is strong. Choose your event type – gala functions are and always will be more expensive than cocktail parties. You can be just as effective at a cocktail party. You should not stick to the same events types if you are looking to save a buck or two.” – Sue Marillier “Make use of technology to reach as wide an audience as possible and reduce travel costs. Negotiate with your venue; venues should be happy to unpack costs to provide you with tailor-made products to suit your budget.” – Bronwen Cadle
turn to page 26
On the radar
Emerald Resort and Casino refreshes its brand THE Emerald Resort and Casino, situated on the banks of the Vaal River in Vanderbijlpark, has unveiled its revitalised brand identity along with a subtle brand name change; moving from Emerald Casino Resort to Emerald Resort and Casino. “In line with our strategic direction, our positioning was refreshed to emphasise the resort aspect of our business beyond gaming,” says Emerald Resort and Casino ceo Martin Rice. The establishment offers a 77-room, four-star hotel, luxury bush lodges, riverside self-catering chalets, camping and conferencing as well as family driven activities. Along with the new positioning, a new brand identity has been evolved to portray a more African, warmer and more approachable feel.
Emperors Palace transforms multi-purpose venue A new addition to Emperor’s Palace’s Emporium is a multi-purpose entertainment venue offering – 64 @ The Palace. What was previously Monsoon Lagoon, has been transformed into a large-scale venue adding to the already considerable stable of venues at Emperors Palace. 64 @ The Palace is ideal for just about any function, from corporate events to black-tie dinners. The spacious room suits small to medium-sized events where the venue meets the requirements of a variety of layouts.
Club Med resorts redesigned with customer in mind Club Med’s all-inclusive business programme offers corporates on a budget an alternative to conventional conferencing, meetings, incentives and events, tailored to suit the corporate’s requirements. Club Med resorts are situated in premium beach locations or ski-in-ski-out mountain spots. This year, when planning your next conference or incentive, corporates can consider Club Med’s newly renovated resort in
Bali or Bodrum, Turkey or cruise the Caribbean and Mediterranean on the newly revamped Club Med 2 – a Five Trident sailing ship. “Our resorts have been recently refurbished and redesigned with the customer at mind, from the close attention paid by our dedicated staff to the refinement of gourmet restaurants to the choice of accommodation that will suit every budget and incentive desire,” says md of Club Med SA, Elaine Youngleson.
Diners Club offers a solution to MICE cost-saving issues Tough economic times have forced many businesses to cut down on MICE expenses. To offer its corporate members and their travel management companies a solution to the dilemma, Diners Club has introduced the Conferences and Incentives Guide, the second in a series of three unique Diners Club Choice Guides. The guide is a comprehensive source of establishments all offering exclusive discounts and exceptional offers to ensure MICE-related activities and their outcomes need not be diluted. Each featured establishment has been selected from the Diners Club merchant base, giving users the assurance that that they will not have their project undermined by unreliable suppliers. With the FIFA World Cup fast approaching, the Diners Club Conferences and Incentives Guide offers additional value as the packages and discounts featured within it are valid for a full year. All offers in the guide can be redeemed using either a Diners Club Travel Lodged Account or Corporate Card.
turn to page 28 26 January 2010 • BUSINESS TRAVEL NOW
Destinations
January 2010 • BUSINESS TRAVEL NOW
27
On the radar
Go Survivor-style with Rani Resorts Rani Resorts is launching a Survivor-style group event at Matemo Island in the Quirimbas Archipelago, Mozambique. Not your usual Survivor team-building exercise, the format comprises a minimum of 16 people, who will be divided up in teams where they will challenge each other using both brain and brawn for an ultimate winning team. One of the challenges includes dhow chasing on an original locally made dhow.
Misty Hills combines exhibition and conference facilities IN keeping with local market demand, Misty Hills Country Hotel, Conference Centre and Spa will offer combined conference and exhibition facilities, with a new exhibition centre opening this month. Part of recent extensive hotel renovations, the original workshop has been revamped and converted into a modern atmospheric exhibition centre, ideally suited for small to medium-sized events. Situated opposite the Pelindaba, the largest of Misty Hill’s conference venues, the 1 000 sqm air-conditioned exhibition centre will accommodate 55 exhibitor stands of 3x3 and 3x2 sqm. The stand configuration is adaptable in design to suit individual requirements and décor options. A catering service is also available.
Hyatt introduces new rewards programme for meetings and events HYATT has introduced a new rewards programme for meetings and event planners – Hyatt Gold Passport Planner Rewards. As a participant in the programme, meetings and event planners will earn one Hyatt Gold Passport bonus point for every eligible US dollar spent on eligible meeting revenue, including dollars spent on guestrooms, meeting
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rooms, banquets and inhouse catering, including dollars spent on guestrooms, meeting rooms, banquets and inhouse catering. Planners can earn up to 50 000 bonus points per event. Points can be redeemed for travel rewards, future meeting credits and more. Plus, every qualifying meeting or event that planners have helps them earn credit
toward achieving membership tier status in the Hyatt Gold Passport programme, Hyatt’s global frequent guest programme. For companies with policies that do not allow individual employees to earn bonus points, company accounts are available. The programme is applicable to SA corporates who’d pay the amount in rands.
New Radisson Blu for Port Elizabeth The Rezidor Hotel Group has announced the opening of the Radisson Blu Port Elizabeth – the friendly city’s first international luxury branded five-star hotel. For business travellers and events companies, the 173-room property offers a fully equipped business and events centre, as well as several banqueting and conference facilities. The hotel, situated at Summerstrand’s beachfront within walking distance of blue flag beaches, the Boardwalk Casino and Entertainment Complex, and five minutes from the city’s airport, also features a restaurant, bar and lounge, spa and gym.
ELICC and Premier Hotel Cascades nears completion CONSTRUCTION of the East London International Convention Centre (ELICC) and adjacent Premier Hotel Cascades is on track and due for completion in early 2010. The first phase of the 260-room Premier Hotel Cascades opened in December. Says Samuel Nassimov, md of Premier Hotels and Resorts: “East London and the Sunshine Coast in general tend to be somewhat overlooked as a conference and leisure destination and we aim to change that.” The hotel will have a Camelot Spa, gym, swimming pool,
upmarket restaurant and all rooms will offer sea views and have free WiFi internet connections and 24-hour room service. There are also 260 underground parking bays. Nassimov said a new low-rise leisure, dining and shopping area would also be developed in front of the hotel facing the beach. To be managed by the Premier Hotels group, the ELICC will include a 650-seater auditorium, an exhibition floor and a major hall capable of seating 850 ballroom-style and 2 200 cinema-style as well as boardrooms, restaurants and kitchens.
Greenway Woods Resort introduces new team-building activities Greenway Woods Resort in White River has introduced new team-building activities. A new activity available is Waterball, a game where groups are split into two teams that compete against the clock. Endurance, balance and skill are needed to navigate around a large pool while inside a large plastic ball. Another popular
activity is the Diski Dance, an interactive dance workshop, creating a sense of rhythm and togetherness for delegates. Other activities include human bowls, sumo wrestling, survivor challenges, movie making and the gladiator track. Greenway Woods Resort can accommodate up 200 delegates and offers a choice of banqueting themes.
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Cruising – a winning incentive
By Melody Brandon
W
ITH many corporate executives spending much of their time in hotels for meetings and business events, cruising offers an exciting alternative for conferences and incentives alike. Outstanding onboard entertainment options, activities and itineraries are sure to cater for every taste. In addition, cruising is considered one of the easiest and most convenient group and incentive holidays, not to mention the all-inclusive packages that ensure you get good value for money too. BTN recently experienced Royal Caribbean’s latest and biggest offering, Oasis of the Seas, and it is no surprise that employees would work twice as hard to meet targets for such an experience. Comparative to a floating city, the ship offers cruisers seven different neighbourhoods and amenities, from an ice rink to rock climbing. The Vitality at Sea section of the ship offers the best pampering. Cruisers can enjoy the spa’s gym or choose a number of spa treatments. A choice of evening activities is unparalleled; bars to discos, a floating bar and Broadway shows are yours for the picking. The only difficulty is choosing which activity to enjoy! “‘Wowing’ guests is one of Royal Caribbean’s biggest aims with this ship. The company culture at Royal Caribbean is about putting unlimited energy into design in order to make our ships as innovative and encompassing as possible. Our ships offer a world of possibilities,” Richard Fain, Royal Caribbean chairman and ceo, told journalists on the ship’s pre-inaugural voyage. While Oasis of the Seas is the crème de la crème of cruise ships, there are a host of other products from which to choose to meet your specific requirements. Royal Carribbean specialises in corporate meetings, conferences and incentives onboard 22 ships; in addition they visit over 200 ports and destinations. “It’s a one-stop shop. There’s no 30 January 2010 • BUSINESS TRAVEL NOW
unpacking and repacking. No buses and wondering if the restaurant you are offering will be of good value and standard. Restaurants onboard can cater for your every need and the menu changes every night according to theme and itinerary,” explains Cruises International product manager for Royal Caribbean and Celebrity Cruises, Tracey Krog.
State-of-the-art conference facilities, spacious lounges and meeting areas with built-in technology provide the ideal backdrop for a successful agenda. Cruises International offers an onboard coordinator who will attend to all the client’s requirements. “The conference centre onboard can be used free of charge, including any audio-visual equipment needed as well as coffee breaks. A nominal fee for tips is charged,” advises Krog. The fleet also provides internet access for guests. Each ship has a centre that provides 24-hour access to e-mail and internet and the Cybercabin allows guests access to wireless internet from their cabins. “If our clients want to plan a conference onboard, we take care of everything from a personal planner to a meeting planner. We will organise all onboard audio-visual resources and offer allinclusive packages per delegate,”
On the radar
says Royal Caribbean’s senior vice president marketing, Betsy O’Rourke. Royal Caribbean can accommodate up to 200 guests in suite accommodation onboard some of its larger ships. “Other than the suite accommodation, we can offer clients exclusive use of some of the venues onboard with an exclusive band. In some cases, the ships will allow the group to bring their own entertainment if they so wish. This, however, needs to go through the proper channels. We can offer them exclusive dining opportunities in the specialty restaurants whereby they can use a set menu. In some of the venues, they offer technology and sound and an AV sound technician will be available to the group for a minimal rate,” says Dalene Joubert, groups and incentives consultant at Cruises International.
Cruising a well-deserved reward Research into incentives shows cruising as an incentive provides more motivation than any other. Seven meals offered every day will ensure incentive winners do not go hungry and the host of onboard and land excursions will see them building up a substantial appetite. “Cruise ships offer plenty of space and activities for guests’ privacy and at the same time they have the opportunity to socialise and build relationships with other group members. We can offer private and themed excursions and a host of activities from water skiing and snorkelling
Oasis of the Seas – the world’s most revolutionary and largest cruise ship offers something for everyone.
to hiking trails,” says Krog. Joubert adds: “You can visit as many as five different destinations on a cruise. Imagine trying to do that on a landbased tour? It would require endless packing and unpacking, waking up at ridiculous hours to make it to border posts in time and standing in lengthy queues, as you wait to have visas and documents checked. This is no small task when you are dealing with a large group, especially when you are trying to keep tabs on everyone.” Joubert argues that value for money is one of
the main attractions for corporates. “Every detail is included in the price of a cruise, from the travel itself to documents, food and entertainment options. Some cruise lines even include all alcoholic beverages as well.” The concept of an all-inclusive package is an advantage for incentive organisers. There are no unpleasant surprises once all the cocktails have been sipped, restaurants booked and the activities planned.
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On the radar
What you need to consider • Visas are required for all cruises. • Embarkation could be denied if the correct visas have not been issued. • Passports must be valid for at least six months after the completion of the trip.
Cruises International 2010 programme – ideal for group and incentive travel: • Arabian Adventure: seven-night itineraries from Dubai onboard Brilliance of the Seas • Caribbean: onboard the world’s largest and most revolutionary ships, Oasis of the Seas • Short European cruises: four- and five-night itineraries from various ports in Europe onboard Adventure of the Seas • Scandinavia, Russia and Arctic Circle: five-, seven-, 11- and 12-night itineraries from various ports in Europe onboard Adventure of the Seas • Western Caribbean: extend your stay at Universal Orlando Resort; packages include the cruise, hotel accommodation, theme park tickets and transfers • Asia: four-, five- and seven-night itineraries from various ports of call onboard Legend of the Seas • South America: three-, four-, six-, seven- and eight-night itineraries from Sao Paulo onboard Vision of the Seas • There are also cruises in Alaska, Caribbean, Australia, New Zealand, Mexico and the Mediterranean ■ * All ships belong to Royal Carribbean
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Royal Carribbean can organise all your conference and incentive requirements and offers a unique experience.