SouTHERN AFRiCA’S TRAVEL NEWS WEEKLY
March 17 2010 I No. 2098
TRAVEL NEWS WEEKLY
INSIDE
TNW3847SD
NEWS
fEaTurE
Guten Tag, Axel
Something for everyone
new SA DireCTor for LufTHAnSA
NEWS
GermAny ny & AuSTriA
Page 2
2010 PriCe GouGinG Offenders to be named and shamed
Page 7
Page 12
The end of billbacks? Max Marx
C
ORPORATE agents could soon see the back of billbacks, possibly the most expensive, time-consuming and certainly risky part of their jobs. A revolutionary technological innovation is currently being tested called the iVoucher, which speeds up payment between the TMC, hotel and corporate account. Travelbuy’s new iVoucher is currently being tested by BidTravel’s corporate booking engine, mymarket.com, in a pilot project with City Lodge Hotels and Edcon. George Gerber, gm of travel at mymarket.com, explains how it works: “Once somebody makes a hotel reservation and it gets approved and there’s a purchase order, we issue the establishment with an eVoucher, which actually guarantees payment at that point. So whatever payment instrument is used, whether it’s a lodged card or a bank account, we hold the funds at that point.” He says the new system will remove the massive administrative and costly nightmare that is the billback system. Clifford Ross, City Lodge Hotels ce, is delighted that there is finally a workable
TNW3849SD
solution that could see the end of billbacks. “The industry has been trying to find a solution for years and we’re happy with the way the iVoucher system works. Now travel agents just need buyin from their corporates.” A system like the iVoucher will be beneficial to travel agents, adds Jim Weighell, Sure Travel’s corporate manager. “The billback system most often means that TMCs have to act as banks or credit providers and are exposed to considerable risk in the event of a client’s inability or reluctance to settle an account.”
“The industry has been trying to find a solution for years and we’re happy with the way the iVoucher system works. Now travel agents just need buy-in from their corporates.” He says it might be difficult, however, to persuade SMEs to opt for upfront payment as they like the 30- to 90-day credit facility and have become used to it. Mike Gray, ceo of Unglobe Travel, believes the iVoucher is going to bring a revolutionary change to the system. “The days of
travel agents being credit providers to companies are over. Government, corporates and small SMEs that can’t get credit from banks are using agents as last resort bankers and I’ve had five closures of small agencies in the past two years because of billbacks.” Mike says the iVoucher system will stop corporate travellers from abusing the system, which often sees travel agents left to foot the bill because companies refuse to pay for what they haven’t authorised. For Brett Dungan, Fedhasa ceo, the great thing about the iVoucher is that all the money is held in trust until the transaction is effected. “This protects consumers, travel agents, tour operators and hotels alike because it stops a tourism business from using the deposits and protects other parties if any supplier in the chain goes belly up.” Wally Gaynor, Club Travel md, says his agency grouping is interested in the iVoucher as a solution but would first like to see it thoroughly tested. He hopes corporates will go for it. “Billbacks are the bane of a corporate travel agency’s life and the most expensive, time-consuming part of the relationship with a corporate client.” To page 12
egg-ceptional easter specials Particular properties within the Three Cities Group are making the Easter weekend an affordable option for holidaying with their ‘Pay for two nights and stay for three’ Easter weekend special. Travellers can escape to various properties in KwaZulu Natal, Mpumalanga and North West Province, and the Western Cape as well as Botswana, Zimbabwe and Zambia. Meanwhile, guests who can’t make use of the exclusive Easter weekend special don’t lose out, with exceptional rates valid for the months of March and April. Delivering the egg-ceptional specials are Easter bunnies, regional sales manager Gauteng, Craig Parvess, (left) and sales executive, Arno Strydom Photo: Tiyana Huysamen
uS visitors to pay for esta Jeanette PhilliPs VISITORS to the United States may soon have to pay at least US$10 to complete the Electronic System for Travel Authorisation (ESTA) before travelling. This follows the passing of the Travel Promotion Act by the US Senate.
A corporation to promote travel to the US is likely to be set up to promote it as a tourist destination and to provide information for visitors and travel professionals overseas. The corporation will be funded by the ESTA charge, which will be put towards a Travel Promotion Fund. n