in sUB-saharan

Transcription

in sUB-saharan

AUTHOR: CHRIS POUNEY M.Sc MCIPS
Understanding
BUsiness travel
in sUB-saharan
2014
IN COLLABORATION WITH
COntent
Foreword
3
Introduction
4
Research overview
5
Executive summary
6
Part One: afriCan CUltUre and dOing BUsiness
7
Part twO: the BUilding BlOCks Of managed COrPOrate travel
13
» Airlines
14
» Hotels
17
» Travel Management Companies (TMCs)
20
» Safety and security
23
» Technology
25
» Payment solutions
29
» Visas
33
» A traveller’s perspective
35
Part three: aPPendiCes
36
» Action check-list
37
» About Severnside Consulting and the African Business Travel Association
40
» Our partners
41
» Business travel resources in Africa
45
» With thanks
46
» Glossary
47
2
fOrewOrd - afriCan BUsiness travel assOCiatiOn (aBta)
ABTA has for many years recognised the serious
lack of intelligent and actionable data about business
travel trends, challenges and opportunities on the
African continent.
It was thus with great pleasure and enthusiasm that
we took on the task with Severnside Consulting to
create this research paper. We believe that it will shed
tremendous light on the key aspects that companies
need to understand and consider when sending
corporate travellers into Africa.
For too long now, Africa has been left to its own
devices. Due to the myriad of complexities and
challenges, companies have either been unwilling or
unable to tackle business travel management in this
region in a strategic way. This has lead to often poor
governance, minimal control measures, low visibility
and too frequently - a lack of priority given to how
corporate travel programmes operate on the ground
in Africa.
However, as challenging as this region can be, those
that do make the effort to understand its complexities
and work towards strong local partnerships will know
that Africa offers limitless opportunities. There are
few other places in the world with such a strong
‘can do’ attitude. Emerging markets in Africa have a
very clear willingness to embrace mutually beneficial
partnerships and to be taken more seriously on the
international stage - but they can’t do it alone. The
need for training, skills development and sharing of best
practice is immense. But so too is the need for respect.
Companies must respect that although the way things
are done in more developed markets might often
be advanced in comparison to many of the African
markets, going into Africa with a “we’ll show you how
to do it” attitude is a sure fire way to total failure.
However, there is no shortage of people and companies
willing to embrace new-comers who have the right
attitude and approach and who are willing to be open
minded and learn the ropes from locally based partners.
Local offices and travel partners often find themselves
facing two types of challenges: They are either left in
isolation to deal with the arduous task of managing a
corporate travel policy with minimal input or interest
from their global teams. Or conversely, they are
instructed to mandate a global policy locally, by a head
office who has little to no understanding about the
region - often trying to copy/paste unrealistic policies
and approaches.
“We have no doubt that this paper will do just that for
its readers. It will guide them in gaining a far better
understanding of how to approach and manage business
travel in this exciting, vibrant region. And most importantly, it
will help them get to grips with the value of partnerships to
aid them in the continuous growth and advancement
of their travel programmes.”
Monique Swart
FOUNDER - AFRICAN BUSINESS TRAVEL ASSOCIATION
FOREWORD
3
intrOdUCtiOn
“There is no global without Africa”, said Ilona de March,
EMEA President BCD Travel at ABTA’s recent launch
in Nairobi. Yet it’s very apparent that when large
organisations laud the performance of their global
travel programmes, they are not always delivering
excellence for travellers to, from and within Africa.
Buyers complain TMCs are not always capable of
delivering the joined up service promised across
the region. Challenges exist in some of the more
basic building blocks of managed corporate travel
such as card issuance, availability of robust data
and lack of billing and settlement plan (BSP) in some
markets. TMCs, especially in markets still paying
airline commissions, are not aligned to add value to
buyers and in many developing countries still refer to
themselves as travel agents, which will irk many travel
buyers. Company governance plays a part too. A travel
manager looking after 50+ markets will inevitably focus
most attention on the largest spend, especially with
our research showing that more than 80% of travel
managers based outside Africa have never been there.
Spend may be low, but this should not mean Africa is
off the radar.
One travel manager who looks after many markets points
out, “you need to have a strategy to manage smaller yet
growing markets. There should be no surprises”.
But there are also myths that need to be addressed,
such as fraud. Some buyers revealed a move away from
card payment in Africa, yet South Africa has less card
fraud than the United States.
The net result in all this is that only 47% of buyers
surveyed are able to produce automated traveller
tracking reports. 58% are not receiving data for African
offices and when they do get it, 32% consider the data
to be poor.
the size Of the Prize…
Africa contains many of the world’s fastest growing
markets which, when compared with the developed
world’s largely stagnating economies, will only become
more significant in global terms. A recent report from
Ernst & Young showed that in less than five years,
Africa has risen from eighth to the joint second most
desirable regional investment destination in the world,
tied with Asia.
“The biggest risk right now is not being in Africa - it
is not being in Africa” Dianna Games, Honorary CEO
of the South Africa-Nigeria Chamber of Commerce
Africa has a youthful population desperate to change
perceptions. Its industries have diversified from largely
oil and minerals to thriving manufacturing, service and
IT industries.
For Africa to achieve its economic potential, it needs
the support of a fully formed and functioning business
travel industry. Greater cultural and economic
integration reduces conflict and assists Africa in its
journey from an ‘aid to trade’ economy, reducing the
financial burden on the rest of the world to boot.
During the production of this paper, the team has
engaged with more than 700 travel stakeholders, with
surveys and interviews with more than 170 of them,
travelling to Angola, Kenya, Ghana, Nigeria and South
Africa. I would like to thank the countless industry
colleagues who have given their time to share their
thoughts, and the Steering Group, who have provided
their time, without reward, to guide the paper and
ensure we have delivered against our objectives.
Africa has the potential to leapfrog more advanced
nations by developing new ways of doing things, rather
than simply implementing Western travel management
principles. From leading the world in mobile payment
platforms, to delivering every travel managers dream:
ubiquitous and free Wi-Fi.
Africa needs to have a seat at the table in global travel.
Likewise, business travel needs to underpin African
development, and being recognised as an enabler of
growth, wealth and integration.
“This paper has been written and designed to give travel
professionals the information and guidance needed to
improve the performance of a travel programme.”
Chris Pouney M.Sc. MCIPS
The content will empower travel buyers and managers
to speak with more authority about this fascinating
continent and a more productive engagement will
up-skill roles and make sure business travel plays a
central role in Africa’s future.
DIRECTOR BUSINESS TRAVEL - SEVERNSIDE CONSULTING LTD
INTRODUCTION
4
researCh Overview
Buyer industry sector -total 72
BaCkgrOUnd
and aPPrOaCh
The project team conducted
over 170 engagements with travel
industry stakeholders through in
depth interviews, lighter workshop
and feedback sessions and focus
groups. These sessions covered
stakeholders based across Africa
(Angola, Cote D’Ivoire, Ghana,
Kenya, Nigeria and South Africa),
and stakeholders based outside
Africa with responsibility for travel
to, from and within the continent
which included travel professionals
based in Germany, Netherlands,
UAE, UK and the US.
ENERGY
MINING
12%
MEDIA/
ENTERTAINMENT 2%
PHARMA
5%
FINANCIAL
SERVICES
8%
LOGISTICS 2%
PROFESSIONAL/
BUSINESS SERVICES 4%
IT/TELECOMS
7%
RETAIL
5%
MANUFACTURING 3%
FMCG
5%
EDUCATION 2%
GOVERN
MENT
8%
OTHERS
6%
NOT
FOR
PROFIT
3%
Supplier industry sector -total 94
In addition, research was
conducted through a variety
of sources including industry
bodies, regional economic groups,
journals, white papers and industry
commentary.
TRAVEL
AGENT
26%
HOTELS
9%
The statistics and themes observed
during these engagements has
been used to shape the discussions
and form the recommendations in
this paper.
GDS 6%
TMCs
32%
OTHERS
6%
AIRLINES
15%
Engagement by country/region
-total 166
160
153
140
120
100
80
60
40
20
0
9
2
2
23
1
1
1
24
37
34
1
34
2
6
2
Region
Country
RESEARCH OVERVIEW
5
exeCUtive sUmmary
BaCkgrOUnd and researCh
Ó White paper developed for the business travel industry,
to support African growth using three key principles:
seek innovation, reflect all Africa and recommend actions
Ó The 3 pillars of research:
» Intensive buyer benchmarking exercise: with over 160
engagements in 11 countries (6 in Africa, 5 global)
» Stakeholder interviews
» Wider macro economic research: such as industry
bodies, regional economic communities, government
bodies and wider business media
findings
Governance and travel policy:
Ó The nuances of travelling in Africa are rarely addressed
in global travel policy
Ó Travel managers (local or global) need to increase their
knowledge of Africa and build creditability with business
heads - best way to do this, is to travel themselves,
which they rarely do
Ó For many large companies, Africa is a subset within
EMEA, creating unrealistic time pressures on staff
to effectively manage this growing region. More
thought should be given to company structure to
effectively govern
Technology:
Ó Appetite for technology is high yet apart from online
booking for South Africa domestic travel, take-up of
technology within travel programmes is poor
Ó Africa should be leading the way in many global
organisation travel programmes, for adopting or testing
technology solutions
Ó Mobile is a key differentiator for Africa and mobile
internet usage is developing faster, and in ways different
to elsewhere. Mobile is dominating and whilst there
are some challenges with connectivity, these are
being addressed
Ó Travel managers should be more aware of technology
developments, such as roaming charges, devices used
and opportunities through video conferencing
Ó Technology is within reach, regardless of a buyers or
TMCs size
Ó GDS should be treated as a primary supplier, rather than
merely a technology decision made by the TMC
Payment:
Ó Manual payment methods such as cash and invoicing
dominate with low use of card products, particularly
outside of South Africa
Ó Unlike other regions, a single form of payment for travel
is unrealistic in this market. Buyers should evaluate
and select a suite of payment options, which assesses
the true costs and risks, whilst balancing efficient
reimbursement of employees payment of suppliers and
provision of actionable and relevant data. You must
ensure accuracy, transparency and auditability
Ó Developing more efficient payment and reimbursement
processes is a highly effective way of reducing friction,
driving better data and improving supplier relationships
Airlines:
Ó Buyers are frustrated through lack of capacity and direct
flights, high fares, taxation, safety and service received
Ó Quality is improving and opportunities exist, smarter
buying driven by better data and improved technology,
enabling travellers to make more informed travel choices
Ó TMCs buyers and airlines should partner on route
development
Hotels:
Ó Economic growth, combined with long lead in times for
hotel development is creating capacity constraints and
high rates in key markets, such as Angola and Nigeria
Ó Buyers must:
» Create strong partnerships with critical hotels
focusing on paying promptly and becoming the
‘customers of choice’
» Fully understand their demand by ensuring that they
understand all their hotel requirements, through
development of better data
» Create smoother booking processes for users and
ensure that if they have a policy of booking through
a TMC, this is enforced through having correct
content available
Safety and security:
Ó Safety is a consistent concern for travel managers but
should be considered as more than just the headline
incidents such as air crashes and terrorist activity. More
mundane issues such as road accident or illness, are not
adequately addressed
Ó Too many companies have gaps in their traveller
locator information and this should be addressed
urgently. Travellers should be briefed, tracked and
supported at all stages of their journey and travel
managers should test their processes to ensure that
all employees are captured
Travel Management Companies (TMCs):
Ó High number of suppliers describe themselves as
travel agencies, not TMCs, likely due to reliance on
commissions from airlines and hotels
Ó Many companies have a desire to consolidate their TMCs
to deliver more consistent service and standardise data,
but concerns exist with consistency of suppliers training
and service delivery across Africa
Ó Larger companies can develop supplier development
programmes where they feel the quality is not available
Ó Huge opportunities exist for TMCs who can deliver
consistency in service, data and policy application
Ó In the absence of TMC consolidation, benefits can
be derived from consolidating elsewhere in the travel
programme, such as more effective consolidation
of data, payment, GDS or hubbing through centers
of excellence
EXECUTIVE SUMMARY
6
PART 1
afriCan CUltUre
and
dOing BUsiness
AFRICAN CULTURE AND DOING BUSINESS
afriCa in nUmBers
mOre than a single stOry
Addressing academics at Oxford University, Nigerian
author Chimamanda Adichie recounts the story of a
flight from Lagos to London. Shortly before landing,
passengers were asked to donate to the airline’s
chosen charity. “The money will help projects in India,
Africa and other countries,” announces the flight
attendant. Referring to Africa as a country left the
writer feeling rather annoyed, but also vindicated.
She was touring with a speech, entitled “The Danger
of a Single Story”, highlighting how ignorance creates
false perceptions.
The global business community and media are
often guilty of similar mistakes. It’s almost impossible
nowadays to open the finance section of a broadsheet
newspaper and not read about African growth, African
investment or opportunities in Africa, as if Africa
were a single entity. Many fall into the trap of making
sweeping generalisations about individuals, groups,
governments and companies.
“When we hear about people living in Africa we
usually hear about poverty, violence, health crises,
and other challenges. We get a single story.”
Africa in Numbers
CHINA
1.35Billion
AFRICA
1Billion
54
TOTAL
POPULATION:
LANGUAGES
SPOKEN:
1BN
>1000
The land mass is greater
than China, the US, India
Japan and most of Europe
combined.
TOTAL
LANDMASS:
China
Over a Thousand
different languages
are spoken in Africa.
Europe
Western
India
ates
United St
Me
xic
o
NUMBER OF
COUNTRIES:
Japan
AFRICA IN NUMBERS
8
diversity
highs and lOws
In Africa there are no fewer than 54
countries with a land mass greater
than China, the US, Japan, India and
Europe combined. A population of
almost 1 billion people share diverse
cultures and customs, and speak
more than 1,000 languages. Many
people interviewed for this White
Paper refer to a common ‘African
spirit’, but that notion in itself means
different things to different people.
According to ‘The Economist’, West Africa has six of the ten largest
growing economies in the world, though it must be remembered that
in global terms they are starting from a low base. New wealth and
opportunity is not, however, blessing every country. In 2013, the World
Economic Forum (WEF) Africa competitiveness report found that 14 out
of the 20 least competitive economies were also in Africa.
But change is afoot in many places. Nine of the 10 fastest birth rates in
the world are in Africa. More than half of the population is under 20
years old. Analysts predict the working-age population will surpass China
within three decades. While according to consultancy McKinsey, more
than half of households will have disposable income by 2020.
land Of OPPOrtUnities - grOwth in key markets
A traveller in wealthy Johannesburg
suburb Sandton is certain to have a
different experience when visiting
Maputo. Likewise, Accra and Lagos,
though only 250 miles apart, have
noticeably different approaches to
business and every day life.
That said, certain parts of the
continent are sharing the experience
of unprecedented economic growth.
Africa was not totally immune to the
fall out from the global financial crisis,
but some markets presented new,
low-risk opportunities for investors.
Many, like Nigeria, are now booming.
Early in the last decade a number of African economies experienced
better than global average rises in GDP. The growth excited investors.
In some quarters, concerns about their ability to keep progressing
remained, owing to the history of political instability and conflict. But
contrary to the negative speculation, many embarked on a period
of sustained social, economic and political stability that has lasted
until today. There has been an emergence of a middle class in some
countries, combined with young, growing populations. The urbanisation
of major cities and a strengthening financial sector have also helped
attract foreign investors.
Changes fOr the Better
Ethiopia has largely overcome the devastating famine and political strife
of the 1980s, to become one of East Africa’s great success stories.
Perhaps even more remarkable has been the case of Rwanda. Only 20
years ago the country endured large-scale violence between two of
its largest ethnic groups. Its transformation, therefore, could not be
more extraordinary. The country’s leaders have modeled the economy
on Singapore. Free Wi-Fi has been provided to citizens to boost
online intellect and the digital economy. And once a month the people
down tools to engage in community activities designed to engender
collaboration and improve societal relations.
Population by country across 40 years
-source: world bank
350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
0
1971
1982
1992
2002
2012
AFRICA IN NUMBERS
9
BUilding BriCs
Foreign investment is the continent’s key economic
driver. A report published in 2014 by the African
Development Bank, the United Nations Development
Programmes and the Organisation for Economic
Cooperation and Development predicted it would reach
$80 billion by the end of the year. As of 2012, France,
the UK and the US topped the charts with a combined
investment of $180 billion. The Brics nations - Brazil,
Russia, India, China and South Africa - spent $68 billion,
40% of which was spent by China alone (see box on
next page). The report predicted economic output for
the continent would grow 4.3% in 2014 and 5.7% in 2015.
Some of the biggest economies in East and West Africa
are expected to enjoy the highest levels of growth.
The bulk of foreign investment is spent in Africa’s
two largest economies, South Africa and Nigeria.
In 2011 South Africa was invited to join the exclusive
group of the world’s fastest growing economies. The
Bric acronym - which stood for Brazil, Russia, India and
China - became Brics. Unfortunately, since its elevation,
the South African economy has stuttered, largely
because of a series of strikes in the mining sector that
have contrived to paralyse areas of the economy.
The International Monetary Fund (IMF) said the impact
of the industrial action was holding back overall growth
figures for the entire Sub-Saharan Africa (SSA) economy.
At the end of the first quarter of 2014, the South
African economy was replaced by Nigeria as the
continent’s largest. The West African nation’s huge oil
reserves and burgeoning telecoms sector led it to be
included in the latest acronym to appear in the financial
press. The Mint nations - Mexico, Indonesia, Nigeria and
Turkey - are predicted to rival growth in the Brics in
coming years.
The continent’s biggest and most lucrative sectors are
natural resources. Oil and gas (drilling and exploration),
for example, are the principle drivers in Nigeria, Angola,
Cameroon, Chad, Gabon, Equatorial Guinea and the
Republic of Congo. Elsewhere, mining for precious
stones and metals encompasses a large percentage of
many countries’ GDP.
“Brics is starting to become more than a
punchy acronym. The development of a Brics
development Bank, an annual Brics Summit
and inter-Brics investment such as Russia’s
$10Bn partnership with South Africa to develop
nuclear power plants, are all evidence of this”
World’s 10 fastest-growing Economies
Excluding countries with less than 10m population and Iraq and Afghanistan
-sources: The Economist: IMF
Annual average GDP growth,%
GDP growth, unweighted annual average,%
6
2001-2010
2011-2015
5
Angola
11.1
-----------------------------China
10.5
-----------------------------Myanmar
10.3
-----------------------------Nigeria
8.9
-----------------------------Ethiopia
8.4
-----------------------------Kazakhstan
8.2
-----------------------------Chad
7.9
-----------------------------Mozambique
7.9
-----------------------------Cambodia
7.7
-----------------------------Rwanda
7.6
------------------------------
China
9.5
-----------------------------India
8.2
-----------------------------Ethiopia
8.1
-----------------------------Mozambique
7.7
-----------------------------Tanzania
7.2
-----------------------------Vietnam
7.2
-----------------------------Congo
7.0
-----------------------------Ghana
7.0
-----------------------------Zambia
6.9
-----------------------------Nigeria
6.8
------------------------------
4
3
2
1970s
1980s
1990s
Asian
countries
2010 estimate
2000s
2011-15
African
countries
forecast
AFRICA IN NUMBERS
10
fUtUres
Shareholder return on investment in the energy sector
has proven to be lucrative and has therefore attracted
the lion’s share of foreign investment. Dedicated
equity funds, including sovereign wealth, pensions and
investment banks from across the world all have high
stakes in these industries. However, some analysts and
commentators argue that profits from natural resources
rarely trickle down to the majority of a country’s
population. There are indirect benefits to local
economies where, for example, refineries and mines
are located, but the profits are more often than not
confined to a small number of participants. The advent
and development of other industries has been largely
responsible for broader wealth creation. Agribusiness
is one of Africa’s largest sectors. Telecommunications,
banking, retail and construction are also creating jobs
in new areas. The knock-on effect is increased
consumer spending that has driven the growth in the
retail sectors.
skills and edUCatiOn
One of the most frustrating barriers to growth for
organisations across the continent is human resources.
Unsurprisingly, the number of school leavers and
university graduates compares unfavourably with other
countries in the global marketplace. Certain segments
of the travel industry, for example, feel the shortage
particularly acutely. Business aviation firm Execujet has
maintenance facilities in Johannesburg, Cape Town and
most recently in Lagos. Graeme Duckworth, a company
director, says the challenge facing many aviation
companies in Africa is finding qualified engineers.Zemene
Nega, Ethiopian Airlines vice president of maintenance,
says the carrier was held back for many years because
of a lack of skilled workers. It has since invested millions
in building and developing an academy to prepare
workers for all aspects of the business. Geraldine Zilk,
director of Travel Connections in South Africa (part of
GSM network), says the travel agency community also
struggles to attract educated staff, often owing to the
fact that university graduates can earn more money in
other sectors or outside of Africa altogether.
Chinese inflUenCe in afriCa
It is not unusual to walk down a busy city street in
Ethiopia, Tanzania or Zambia and see signs written
in Mandarin. China is, by far, Africa’s leading
trade partner and biggest investor. During a visit
to Angola, Ethiopia and Nigeria in 2014, China’s
Premier Li Keqiang said trade would double by
2020. It is already worth more than $250 billion.
More than 75% of Chinese money is invested in
mining, construction, finance and manufacturing.
It is also funding some of the continent’s most
important infrastructure projects, such as a new
airport in the Angolan capital Luanda and a rail line
in Nigeria.
More than 80% of China’s $93.2 billion imports
from Africa in 2011 were crude oil, raw materials
and resources. In 2012, the China Development
Bank agreed to provide $3 billion in loans to
Ghana, almost 10% of its GDP. South Africa is
China’s largest trading partner in Africa, at a
volume of $20.2 billion per year.
land Of Challenges – BUsiness OBstaCles
With Africa’s rich landscape of opportunity comes
an abundance of impediments. The continent is
the poorest on the planet, cursed by centuries of
war, natural disasters and outside intervention. It is,
therefore, no surprise that many countries suffer
from high rates of poverty, infant mortality, illiteracy
and corruption. In the last 20 years much has been
done to alleviate hardship. But companies and
organisations planning on expanding operations into
SSA marketplaces have to be aware of the hazards
before embarking into Africa. This is especially true for
travel buyers and managers who, to a large extent, will
be responsible for ensuring their travellers safety and
productivity in these destinations.
AFRICA IN NUMBERS
11
COrrUPtiOn
In 2013, SSA was perceived to be
one of the most corrupt regions in
the world according to a study by
Transparency International. Not one
single African country appeared in
the top 30 least corrupt nations.
Countries such as the UK, have tried
using aid programmes to positively
influence the issue. This year, for
example, it suspended aid to Uganda
over fears of corruption. Whether
these tactics are successful or not
remains to be seen. The challenge
for many businesses setting up in
Africa for the first time is accepting
that corruption and bribery are
entrenched in many of the cultures.
Kenneth Ekrete, director of GSM
travel agency Network Travel Nigeria,
calls it the Africa syndrome. “[In
Nigeria] you have to pay people to
do the most basic tasks,” he says.
“It is expected, and it starts when
you arrive at the airport.” Levels of
corruption differ from country to
country, but preparing to face the
issue is a fundamental element of
enterprise risk strategy.
gOvernment BUreaUCraCy
Setting up a new business or opening an office is no simple matter in
almost every SSA country. Dealing with local authorities, government
bureaucrats and politicians can often feel like pushing water up a hill.
A starting point is to understand the legal and regulatory environment
of the country in which one is operating. How stable is it socially,
politically and economically? In some countries a joint venture with a local
business is necessary to obtain permission to start up. Due diligence and
background checks on partners are important, but it will by no means
guarantee clarity or assurance. “Local content” is a phrase businesses
will hear a lot across Africa. It is a commitment by foreign investors
to employ local people and, as far as possible, source local products.
Local authorities will often seek a certain level of commitment to local
content when a business is being established. Chris Dell, a director for
risk specialist Drum Cussac, says: “It is important across most of Africa
to understand community relations and how you engage with the
local community surrounding any project. Getting that piece right can
neutralise some potential threats. It’s about understanding the political
and social context into which you are investing.” Depending on the scale
of a company’s operations, it may also be important, for a number of
reasons, to take national elections into account such as in Nigeria in 2015.
Firstly, they often bring instability. Secondly, a business must evaluate
what may happen depending on who wins. A Drum Cussac client recently
decided to wait until an election result was returned before committing to
a significant investment.
COnfliCt and trade
In the last 25 years African nations have been involved in 257 of 972 (27%)
recorded conflicts, according to the Department of Peace and Conflict
Research in 2013. Indeed, only four of the top 10 Africa economies by
2010 GDP have remained conflict free in the past 25 years. The reasons
for conflict stem from various roots, but much is rooted in the aftermath
of colonialism, and centres around struggles for power.
However, analysts believe investment in intra-African trade and
infrastructure would alleviate tensions through greater cultural and
economic integration. For example: The case of Kinshasa, the capital of
the Democratic Republic of Congo (DRC) and neighbouring Brazzaville,
the capital of the Congo. The two huge French-speaking cities are 40
miles apart and separated by the Malebo Pool River. There is no bridge
across as each nation traditionally traded with its colonial masters
of Belgium and France, making trade between the two countries
unnecessary. The limited amount of trade that takes place has to be
facilitated by expensive boat transfers across the river. Experts believe
this type of intra-regional trade would stimulate relations, encourage
infrastructure development and attract more outside investment.
Did You Know?
1. The Rwandan government provides free public Wi-Fi because it believes it is as essential as
water and electricity
2. Nollywood, the Nigerian film industry, makes more films in a year than Hollywood
3. There is a higher percentage of female elected representatives in many SSA nations than in
the UK parliament or US Congress
4. 14 French speaking (Francophone) West and Central African nations including Senegal, Ivory
Coast and Cameroon have a highly successful currency union, the CFA - Communauté
Financière Africaine (African Financial Community)
AFRICA IN NUMBERS
12
PART 2
the
BUilding BlOCks
Of
managed
COrPOrate
travel
THE BUILDING BLOCKS OF MANAGED CORPORATE TRAVEL
airlines
what travel BUyers say
1. Is a time window used to identify the
‘benchmark fare’? Yes - 68% No - 32%
Time windows used to calculate lowest fare
range from 1 hour to 24 hours of requested
flight time
3. Number of companies who have a separate
air policy for senior travellers - 95%
2. Flight duration allowing business class:
5. Low cost carriers:
4. Companies indicating that premium
economy will be further considered in 2015
when further implemented - 22%
ÓEconomy all flights - 60%
ÓUsed: Yes - 65% No 35%
Ó3 hours - 5%
ÓWhere they are used, stipulates South
Africa only - 23%
Ó4 hours - 25%
Ó6 hours - 5%
Ó8 hours - 5%
6. Deal negotiation: where are deals for SSA
airline contracts negotiated?
ÓLocally - 54% Centrally - 46%
Africa appears to have all the necessary preconditions
for a flourishing aviation sector. Overall GDP is
growing, foreign investment is pouring into a number
of its economies, and a growing number of middle
class consumers have disposable income for the first
time. Only the booming Asian marketplace has more
demand for air travel.
However, a number of obstacles are preventing the
sector from realising its potential. Governments’
attitudes to air space, lack of competition, high
taxation, high fares and poor service are hindering
progress. There are also on-going concerns about
safety, regulatory processes, routes and capacity. In
spite of these barriers, experts predict that in the next
20 years Africa will have seven major aviation hubs and
close to 1,000 new aircraft in operation.
rOUtes and CaPaCity
Africa has around 15% of the world’s population, but
accounts for only 5.5% of passenger and freight air
traffic. The continent has the lowest number of aircraft
per capita in the world. Furthermore, the average
aircraft fleet age is higher than any other region and
smaller aircraft are also more prevalent. Research by
The African Airlines’ Association (Afraa) found that an
African person would travel by air, on average, only
once every 15 years. This compares to once a year for
a European and twice a year for a US citizen. In reality
though, travel is conducted by the few and the vast
majority of Africans never set foot on a plane and most
will never leave their country or region.
In some cases, the introduction of a point-to-point
short-haul flight could cut a traveller’s journey by as
much as 12 hours.
Africa has a history of struggling to sustain its own
airlines. Many have gone bankrupt or withdrawn from
service in the last 30 years, leaving a severe capacity
shortage and infrequent, monopolised routes on a
small number of city pairs. Many state-owned carriers,
such as Ghana Airways, Air Nigeria, Air Afrique and
Nationwide, no longer exist.
On intercontinental routes, Middle Eastern carriers,
such as Emirates and Qatar Airways, offer some
capacity, as do most European legacy carriers. In
the majority of the Francophone (French speaking
Central and West African) countries, Air France has
a de facto monopoly.
“In 1980, there were 26 African-owned carriers
flying internationally. Today there are nine”
In addition, Afraa has also raised concerns about
certain governments giving non-African carriers,
particularly those from the Gulf States, more
favourable treatment. Some of these carriers have
previously been granted services and frequencies
that African carriers were denied.
The lack of capacity and the absence of a cohesive
African airline network are the two main stumbling
blocks for growth. The aviation community and political
leaders have been talking about the liberalisation of
African skies for the last three decades (see box out).
Progress has been painfully slow. It is still impossible, in
many cases, for an airline to launch a route that takes
off or lands in a country other than its own.
AIRLINES
14
flying rights
An Open Skies agreement was
signed by 40 African states in
1988 in the Cote D’Ivoire city of
Yamoussoukro. The Yamoussoukro
Declaration (YD) was supposed
to compel governments to open
up their air space to the aviation
marketplace, which would in turn
help improve safety, increase traffic
and lower air fares.
However, it failed to gain traction
and government protectionism
of national carriers prevented
deregulation.
In recent years some governments
have realised protectionism stifles
economic prosperity, but not
everyone is on the same page yet.
A would-be one-hour flight from
Luanda to Kinshasa, for example,
would take a traveller at least ten
hours and possibly an overnight
stay in a hub airport in South Africa
or Kenya because no bi-lateral
agreement exists between Angola
and the Democratic Republic of
Congo (DRC).
Countries that have embraced
change, such as Ethiopia and Kenya,
are reaping the benefits. Even those
who have ditched their national
carriers and opened up to the
marketplace, such as Ghana and
Nigeria, now have more efficient air
services, with better safety records
and more competitive prices.
Furthermore, the money saved
by not having to prop up an ailing
national carrier can be spent
improving the efficiency and safety
of air transport infrastructure.
Progress is slow, but it is real.
safety
According to IATA figures, African carriers have been responsible for a
disproportionately high number of accidents compared to share
of traffic.
Afraa’s view is that a very poor regulatory environment fuelled by
ongoing conflict in the Democratic Republic of Congo and Sudan, has
been the cause of at least 50% of incidents.
In 2005, safety fears led the European Union (EU) to ban a number of
carriers from flying into EU airspace. More than 100 of those blacklisted
were African carriers, although a large number were domestic carriers
incapable of flying to Europe anyway.
This certainly did not help the already tarnished reputation of the
continent’s airline safety. Experts point out that it is not just poor safety
that will land an airline on the EU Banned Airlines list, but also poor
financial transparency. Duty of care policies within many international
corporations still prevent business travellers from flying on banned
carriers at all, leading to indirect flights or the chartering of aircraft.
Since then, efforts have been made to improve the continent’s
performance. The Africa Safety Improvement plan was introduced in
2012 which requires all airlines to become IOSA certified by the end of
this year. Afraa says that safety levels for certified airlines are already in
line with the best world standards.
COst imPliCatiOns
Expensive airfares and taxation are key concerns for travel buyers in
the region.
“The African Development Bank (AfDB) report that air fares in Africa
are around a third higher than equivalent journeys in Europe.“
Air space restrictions and poor fleet utilisation keep the cost of a seat
disproportionately high on some airlines. Airlines who cater to high yield
business passengers who prefer to sleep overnight on the way down
to any number of African hubs, compounded by nighttime curfews at
European and North American airports result in aircraft sitting on the
tarmac all day.
KLM operates a profitable daytime service between Europe and South
Africa, and the advent of on-board Wi-Fi, means business travellers can
remain productive mid-flight. The Middle Eastern carriers, on the other
hand, are not restricted by nighttime curfews at the Gulf’s airports and
so have more flexibility with scheduling.
AIRLINES
15
aCtiOns
ÓTMCs and buyers should lobby airlines to fly
more direct routes. Data should be shared
with airlines to help them build and develop
case studies for more direct routings.
Include instances where buyers have
resorted to chartering aircraft.
ÓEnsure that your lowest logical fare
calculated is suitable for business priorities.
For example: to obtain best fares you
should encourage travellers to be as flexible
as possible through choice of time, carrier
and even airport.
ÓConsider using premium economy products
which will become more prevalent in this
region in the coming years - either to
upgrade or to downgrade. This will be a
possible strategy to reduce often exorbitant
prices in this region, while getting your
travellers where they need to be in
relevant comfort.
taxatiOn
The aviation industry brings huge revenue and economic
benefits into many African countries, but government
taxation is cited as a major barrier to growth. Travel
buyers in SSA rate this as one of their top challenges.
Globally, fuel accounts for between 30-36% of an airline’s
operational costs. In Africa, this is 45-55%.
“Afraa: Many African governments consider
air travel to be a luxury, rather than an
enabler of business.”
The cost of fuel makes running an airline, or a route,
prohibitively high. In some cases, such as Virgin Atlantic
on the Heathrow-Accra route, it has led airlines to
withdraw services.
lOw COst Carriers
African is the only global region where budget
airlines have not managed to properly penetrate the
marketplace. According to the Centre for Aviation, lowcost carriers accounted for only 11.7% of seats in 2011,
compared to almost 40% in Europe. Fastjet, based in Dar
es Salaam, and Ghanian Africa World Airways, are making
inroads. But both businesses are finding it difficult to
grow because of air space restrictions and the cost of
operating an airline in Africa.
ÓMulti national companies should create
an inventory of their airline contracts
globally, in order to be able to establish if
they can work towards regional or even
global contracts.
ÓMake your deals available to all of your
travellers. For example: can a UK-based
traveller flying from SA to Kenya take
advantage of local rates?
ÓUse TMC consortia deals: ensure your TMC
is working to obtain good deals for you,
even if your spend is smaller. Don’t think
just because you are smaller you have to
pay full fares, a good TMC should be able to
leverage similar clients and obtain deals on
your behalf.
ÓDo not forget about corporate mileage
programmes, such as Star Alliance Partner
Plus which can yield returns with little or no
contractual commitments.
ÓConsider using private or shared charters:
which is often the only way to get staff to
more remote regions in Africa. Carefully
apply your companys risk management
processes to ensure that due diligence is
conducted on the charter companys safety.
AIRLINES
16
1. What is your negotiation
process?
ÓCentral process - 44%
ÓManaged locally - 56%
2. Do you mandate bookings
must go through TMC?
ÓYes - 81%
ÓBut of these, 86% accept
they have compliance
concerns and little way
to manage/measure
3. Do you operate a separate
hotel list for senior
management?
ÓYes - 35%
ÓNo - 65%
4. Do you use rate caps across
Africa?
ÓYes - 53%
ÓNo - 47%
hOtels
In August this year, the CEO of Marriott revealed the global hotel chain
was investing $200 million in Africa, opening 36 new hotels, hiring
10,000 employees and expanding into 16 countries. Marriott is the
largest hotel operator in Africa. In 2014 it acquired 116 properties from
Protea Hotel Group.
Not far behind is Carlson Rezidor, which has 30 hotels with 6,300 rooms
under development across the continent. The global hotel chains,
including Hilton and Starwood brands, are scrambling to shore up a
share of the burgeoning marketplace.
Progressive African governments are also supporting investment in hotel
properties. Ethiopia has recently spent millions attracting and working
with some of the world’s biggest brands. The InterContinental Group
opened a five-star property in Addis Ababa back in 2008. Others are
now reportedly on the way. In 2014, Angola announced that its $5 billion
Sovereign Wealth Fund would invest in infrastructure projects, which
would include new hotels. According to Ernst & Young, Nigeria has the
largest pipeline of new hotels in the region with 7,500 rooms added
in 2013, an increase of 10% year on year largely to support increased
business travellers drawn to the country’s natural resources.
sUPPly and demand
Some hotels in African cities command the highest average daily rates
(ADRs) in the world. If you book a room in Luanda or Lagos, where
capacity is scarce, expect to pay the best part of £250 per night.
This premium does not guarantee luxury. It does not even guarantee
constant electricity. However, until the capacity shortage is addressed
the ADRs will remain sky high.
Buyers do need to understand some of the challenges in running a hotel
in Africa versus elsewhere and how this impacts a hotels operational
costs. Markets with complex visa requirements have high instances of
trips being cancelled due to failure in obtaining visas.
‘One hotelier estimates that the number of rooms cancelled
in their Luanda property within three days of stay is around
40%’, compared with around 10% for Rwanda, a country
with a far more liberal approach to entry.’
Furthermore, in many African hubs the use of negotiated rates in
well-known chain hotels is mandated for security reasons. Risk levels
differ from city to city and from country to country, but there are
very few corporate hotel programmes that allow travellers to book
independent properties unless they have been properly vetted. The fear
largely stems from companies wanting to ensure employees are secure,
concerns around productivity and safe food and water.
A large number of travel managers highlighted challenges in having
their travellers book hotels via the TMC, causing challenges with data.
Many reasons apply for this, from guest house content not always being
available in GDS, to Africa’s legendary invite culture - meaning local
offices insist on booking on your behalf.
HOTELS
17
at yOUr serviCe
Service levels in global chain hotels in Africa can fall far
short of what would be expected by the same brands
in Europe or the US. It is difficult for hotel managers
to attract educated and experienced staff to work as
waiters, porters, and front-of-house staff. The problem
is less noticeable in South Africa where the service
sector is relatively mature. Cities like Cape Town and
Johannesburg also benefited from the huge investment
in hospitality associated with the 2010 World Cup.
However, for owners and managers in West Africa,
where more than half of the continent’s hotels are
being developed, training and recruitment is among
their biggest challenges.
alternatives
In more stable areas, the use of guesthouses by
African business travellers has increased in recent
years. It is popular in South Africa, and in some other
markets such as Angola and Mozambique, where
chain hotels are less prevalent. The presence of these
independent properties in corporate programmes
has increased by some 30%. However, international
travellers are far less likely to book and use these types
of accommodation. In the energy and mining sector,
use of company run compounds is highly prevalent,
particularly in remote areas.
Of trends in the region, Caroline Daniel: Account
Director Africa for Preferred Hotel Group, says ‘Another
trend that is becoming more popular within Africa especially in cities where stays are for a week or more
- are boutique hotels, with serviced residences and/
or apartments attached to it. This type of offering
ensures that travellers have hotel facilities including
spas, bars and restaurants at their disposal, but also
have accommodation that is more spacious and
comfortable for longer stays, as well as the option of
cooking their own meals or bringing in a personal chef.
This significantly reduces the costs associated with
corporates running compounds and in the energy /
mining sector, managing any reduced demand periods.
dOing deals
Travel buyers take a number of approaches to
negotiating rates with hotels in Africa. Many start the
process with central talks. But real value can be derived
from local negotiations. Buyers have been relatively
successful negotiating ancillary services such as
Wi-Fi, but often the hotel stipulates a daily limit which
the buyer needs to ensure meets the demands of
the traveller. With certain cities having appalling traffic
by western standards, total cost of ownership (TCO)
becomes very important when selecting hotels in many
African cities. Buyers need to bear in mind long transit
times (and costs) when staying at alternate hotels versus
staying at the venue of the conference or meeting.
“Growth is exciting in Africa. Two things are
happening. GDP is growing quickly in many
countries. That growth means opportunity.
The second thing about Africa is it’s got a
hugely growing middle class. There are about
a billion people. They are young. And that
growth means people will be travelling within
and outside of Africa. We want to make sure
they know our brands.” - Marriott CEO
“We take both a local and global approach to
negotiations. We accept local negotiations can
often secure lower rates, plus we want those teams
to buy into the process. They love to beat the
global rates, so after the initial negotiation we hand
over to them so they can work their contacts and
bring more value to the deal. It is, of course, within
agreed parameters, such as last room availability,
breakfast, minimum cancellation period, and rates
loaded into GDS. We find that 90% of the time the
local teams can reduce the rates. Everybody wins,
and the local office saves face.”
- Global Procurement Manager, FMCG
HOTELS
18
Hotel General Manager, Luanda - “Long stay rates are
difficult to negotiate in some markets. Guests who stay
for seven nights or less arrive with their companies
security briefing ringing in their ears. They are afraid
to leave the hotel. They spend all of their time and
money in the hotel. If the same traveller were here
for a month they would eventually grow tired of the
hotel and venture outside. That’s when they realise
the security briefing is over the top. We then lose
significant revenue overall.”
aCtiOns
ÓBest practice is to drive bookings through
the TMC - buyers must challenge the African
‘invite culture’ (where the local office will
offer to book your hotel) and ensure they
know where their travellers are staying.
ÓExamples include: manual expense checks,
or a TMC using a reason code to denote that
policy has not been followed.
ÓAt a minimum, the TMC can capture the
reason for non-compliance.
ÓCommunicate internally to dissuade travellers
from booking hotels locally for guests,
instead recommending hotels to be booked
through an employees home TMC.
ÓEnsure that all travellers, be it local or global,
have access to the same hotels - a local list
of hotels will only seek to dilute spend and
damage leverage.
ÓEnsure hotel data is captured, and that travel
managers can locate travellers in the event of
an incident.
ÓConsider the rising popularity of guesthouses
in certain markets such as South Africa and
Angola. Develop a strategy and either use
them or don’t.
ÓConsider the use of dedicated company
corporate housing, shared corporate
housing or guesthouses, if capacity cost
or quality is an issue.
ÓFocus on ancillary revenue such as Wi-Fi,
laundry and food when negotiating hotel
rates. For Wi-Fi, consider not only if it is
included, but if there are any maximum daily
allowances and how many devices can be
attached, plus the security of the network.
ÓWithin policy - travel managers should
consider the need for early check-ins and
late checkouts at hotels, if preferred airline
routings demand it. Arriving in Lagos at 4am
after a six-hour flight, is not the basis for a
productive days work.
HOTELS
19
tmCs
1. What TMC strategy do you deploy in Africa?
ÓGlobally consolidated TMC - 45%
ÓLocally selected TMC - 55%
Of those locally selected, 30% currently
investigating options to achieve benefits
of consolidation.
2. Companies with Service Level Agreements
and/or Key performance Indicators in place
consistently with their TMCs:
ÓYes - 48%
ÓNo - 52%
Consolidating your travel management company (TMC)
can be a highly effective way of professionalising a
travel programme in Africa, but given the complexities
of travel in many of the continent’s marketplaces, it
is crucial the right partner is chosen to help derive
maximum value from suppliers and provide exemplary
local, on-the-ground support for travellers. Global
TMCs sell the fact they have offices in many remote
and challenging marketplaces, but in many cases these
are joint ventures with small, independent agencies.
Some would argue it is little more than a sticker on the
door. It is not unusual for the local partner of a major
global TMC to have gmail email addresses. The global
TMC brands need to play a stronger role in up-skilling
local partners by addressing the issues of appearance
and professionalism. Failing to do so will make it harder
to attract clients based outside Africa.
Most TMCs have partners rather than wholly-owned
operations in Africa with no guarantee that the partner
possesses the technology and skilled human resources
available elsewhere in the TMCs global network.
The main concern for buyers, therefore, is that what
appears to be a fully integrated operation is no more
than a basic local travel agency using the branding
of a global partner. Furthermore, travel buyers often
complain local agencies are too focused on leisure
travel, and that there are too few consultants dedicated
to corporate clients. Many agents say they can service
corporate clients on the basis they can make travel
bookings for companies. But they seldom understand
the intricacies involved in servicing a corporate
account. Vetting is, therefore, a vital aspect of the RFP
process and attention needs to be given as to whether
trying to do this remotely is a wise choice.
3. What TMC configuration is deployed
in Africa?
ÓOffsite single location - 63%
ÓOffsite hubs - 13%
ÓOnsite agencies - 24%
4. Greatest challenges with TMCs in Africa:
ÓService - 55%
ÓReporting - 36%
ÓObtaining rates - 9%
5. Companies receiving travel data for their
Africa offices: Yes - 42% No - 58%
tmCs Or travel agents?
Experienced travel buyers and managers can easily
spot the difference between a TMC and a travel agent.
Traditionally, agencies worked on behalf of airlines
and were paid commission. When airlines stopped
paying commission in more developed markets such
as the UK, Europe and the US, agencies evolved into
consultancies focused on serving the requirements
of travel buyers and managers. That meant the
provision of a number of services over and above
reservations: data collation and reporting, security
management, supplier negotiations and so on. In many
African markets where commission cuts have not fully
occurred, this is not the case.
Many buyers insist on having multiple travel agents
quote for every transaction, as they don’t always trust
the fares offered and are not comfortable having one
main intermediary. Yet pricing an itinerary with multiple
agencies carries some risk. An airline may cancel a
ticket because it appears to be a duplicate booking.
And, somewhat ironically, an airline’s automated yield
management system may push up the price because
demand for the flight is artificially high.
“Pricing an itinerary with multiple TMCs can
actually increase the price”
TMCs
20
BsP
Fundamental to the TMC model is
accreditation to the International
Air Transport Association (IATA) and
its billing settlement plan (BSP). BSP
allows TMCs to sell airline tickets on
behalf of IATA’s member airlines, and
to pay monies collected by monthly
remittance. The system improves a
TMCs financial control and cash flow.
If BSP is not in place, an intermediary
has to set up a line of credit with
each airline.
The challenge for many TMCs and
agencies in Africa is that BSP is not
always available. Angola and the
DRC are among 15 countries that still
don’t have the option to apply for
accreditation. Rwanda was the last
country brought into the IATA fold in
2013. In Angola, intermediaries have
to lodge a bond with a Portuguese
bank to obtain credit from an airline,
an extremely costly administrative
process. Some 60% of intermediaries
in the former Portuguese colony
describe themselves as travel
agents rather than TMCs, and airline
commissions still drive the market.
Where BSP is available, the
intermediary lodges a bond with IATA
directly, and then has to continuously
meet a number of accounting
processes and procedures.
From the buyers’ perspective,
agencies and TMCs with BSP offer a
more robust proposition than those
without it. Unfortunately, dealing with
non-BSP travel agents is a reality.
Buyers, therefore, need to create
effective strategies to deal with the
associated challenges.
COntraCts
Contracts provide written agreement on what is being purchased and
ensure clear communication on services received and fees paid. They
can also ensure that a company’s reputation and personal information
is protected. Feedback is mixed on whether most clients have contracts
in place with their TMC. Some TMCs said almost all of their clients had
contracts in place, particularly for government business, or clients
in South Africa needing to report for Broad Based Black Economic
Empowerment (BBBEE) purposes. Others report as little as 30% have
contracts, with Nigeria and Angola even lower still.
hUBBing
To achieve greater consistency from an African travel programme,
many travel buyers consider establishing multi-national service centres,
sometimes referred to as “hubbing”. Rather than employ individual
TMCs in every market, a central point for the continent is set up in a key
location. For travellers, it can minimise the impact of poor service and
processes across a number of markets.
There is a lot to be considered if this approach is taken. If a business
has a multi-country operation including, for instance, Angola, the
agency staff will have to support the Portuguese language. Time zones
and national holidays must also be factored in to staff scheduling and
opening hours. Each marketplace may use a different currency, which
may require ticket fulfillment to be carried out locally. There may also be
an issue with local content, meaning some airlines and fares would only
be available in certain countries. This also raises the complex issue of
taxation, and where it should be paid.
“One of the challenges we faced in Africa is that TMCs were
simply not operating at the level we needed them to in the
areas of data, service delivery and applying policy. Rather
than simply move from supplier to supplier, we embarked on
a supplier development programme where we worked closely
with them and invested time and resources to ensure that they
were able to provide what we needed. It was hard work but
what we now have is a TMC who is delivering to us across the
region” - Carole Graaf (Category Manager Travel: Ericsson)
TMCs
21
data
In a recent survey of 150 travel managers operating
in Africa, conducted by Neema, it was found that
the quality of travel data reported by TMCs was of
substandard quality. Of those generating multi-national
data, 83% of managers said they were concerned about
the quality and integrity of the information, while 33%
were disappointed by the timeliness of the delivery. The
need for current, concise data has never been greater.
Africa-based industry consultant Natasha Rautenbach
believes consolidating TMCs and working with thirdparty specialists could improve the quality of data. “At
a minimum you need to understand spend levels and
behaviours in all regions,” she says. “That can only come
from manually consolidated reports, having one TMC or
by using a data aggregator. Data can be lost with human
interaction, so unless you are able to consolidate your
TMC, data aggregators offer solutions that generate
interactive business intelligence.”
Consolidating TMCs is also a good way for travel
managers to improve control of their African
programme. According to media reports, in 2012,
pharmaceutical company GlaxoSmithKline was operating
its travel programme for China with no fewer than 700
agencies. The company and its many TMCs ended up
embroiled in a fraud scandal that was in part allowed
to escalate because there was little control of the
programme and data. Having multiple suppliers creates
inconsistency. As a consequence, too much time is
wasted managing those inconsistencies as opposed to
working on how to make best use of the data. Ultimately
travel managers need to have better data than the
airlines and hotels with which they will negotiate. If the
data is poor or non-existent, then so are the chances
of negotiating effective rates. In regions such as Ghana
where travel agents or TMCs do not have access to
sophisticated data tracking technology, they are known
to manually capture data on Excel. Though not ideal, it
does at least provide some level of visibility. TMCs need
to raise their game and deliver more consistent, highquality and timely data. Those able to do so will have a
distinct business advantage over those who are not.
aCtiOns
ÓTMC consolidation is possible, but one needs
to conduct effective due diligence which is
hard to achieve remotely.
» Ensure your selected agency has the
required processes and tools to consolidate
data, apply policy and train staff in a
consistent way
» Check that they have adequate segregation
between leisure and corporate travel
» Travel managers should visit suppliers in
their key markets to gain credibility and
truly understand challenges and service
being received
ÓInvestigate and challenge leakage to your
TMC. If necessary, get reports when people
have claimed airline tickets and hotels booked
directly with suppliers.
ÓConsider ‘tiering’ your markets where
larger markets must have increased
standards of data, delivered on time
and to an agreed quality.
ÓBest practice is to agree a contract with
all TMCs as they are managing sensitive
company and personal information. At
the minimum this contract should include:
» Contract length
» Payment terms
» Agreed services
» Consequences of non performance
» Termination
ÓEven without TMC consolidation, data
should be available from your TMC. Insist on
minimum operating standards, with the basic
requirements being monthly data with the
most basic of fields, such as employee name,
airline, spend and ticket number.
TMCs
22
safety and seCUrity
1. Methods of tracking travellers from Africa:
ÓFully included and automated - 47%
ÓManual processes to track - 32%
ÓNot tracked at all - 21%
2. Buyers in Nigeria have the greatest concern
with regards to both airline and hotel safety
and security locally.
Corporations sending travellers to Africa typically invest
a significant amount of time and money developing
travel risk policies and buying specialist services. Given
the continent’s unfortunate history of conflict and
political instability, this is, perhaps, not a surprise. Such
are the riches to be found in these growing markets,
a good security policy acts as an invaluable business
enabler and has a tangible impact on a company’s
business continuity and bottom line. An effective and
robust safety and security policy can fund itself, by
assisting in reducing a companies insurance premiums.
“Travel Risk Management is in its infancy across
Africa. As a Travel Manager, understanding
every element of your risk exposure and how
best to mitigate it, is a fundamental component
of your portfolio. It should be documented
and managed proactively, with the support
of a steering committee of contributing
stakeholders” - Kim Koen (Kitso Consulting)
getting started
Due to the complex nature of security in most African
marketplaces, it is important for travel buyers and
managers to make sure all relevant stakeholders across
the business are engaged with the development and
execution of a travel risk policy. Human resources,
legal, insurance, operations, the TMC and security
specialists must all be involved, with final accountability
residing at the C-level of an organisation.
It is concerning that only 53% of companies adjust their
security policy for the unique environment in Africa.
“A number of buyers noted that travellers TO Africa
gain from additional support but those travelling
WITHIN, are not.”
3. Companies that employ a special travel
security programme for African countries
versus elsewhere? - 53%
4. Companies using an external specialist
security partner for African travel?
Yes - 63%
No - 37%
COmmUniCatiOn
Travel to high-risk destinations, such as the Nigerian
oil fields, may require travellers to be briefed on
specific risks such as kidnap or disease. Training and
communications are of paramount importance. This
can be achieved through e-learning modules, and also
pushing out relevant information to frequent travellers
or new-starts within the induction process, rather than
at the time a trip is booked when little attention is likely
to be paid to security briefings.
PersOnalised gUidanCe
It is also important to tailor security information to
meet the requirement of individual travellers. For
example, messaging for lone-women travellers may
be different from advice given to males. Members of
the LGBT community may need guidance if travelling
to any African country, though Uganda would be
the most extreme case. Companies who have large
numbers of frequent travellers visiting Africa may also
find value in employing a mobile vaccine company to
provide inoculations.
mOnitOring
Successful travel risk strategies ensure the booking
process is linked to security. This requires collaboration
with the TMC to make sure the policy is implemented
in the booking process in the same way that suppliers’
negotiated rates and fares are managed. Companies
with more rudimentary safety programmes may simply
prohibit travel to a perceived problem country. More
sophisticated strategies allow regions within countries
to be assessed for risks, and focus on business
enablement. This may see a traveller to a problem
area requiring more pre-travel briefings, and a GPS
locator for example.
“In Nigeria there are 1,042 deaths per 100,000
cars on the road. In the UK it is seven”
- World Health Organisation
SAFETY AND SECURITY
23
resPOnding
In the event of an incident, whether it be a kidnapping,
natural disaster or road accident, company employees
should be aware of how to react. From the CEO through
to all relevant departments, everyone should be briefed
on roles and responsibilities in certain scenarios. This
should be decided upon and communicated during the
initial development of a travel risk policy and on a regular
basis throughout the year. A company’s response to a
specific incident such as an air crash will be different
from an on-going citywide incident such as the terrorist
attack on the Westgate shopping mall in Kenya in 2013.
Regular risk assessments and traveller tracker tests
should be part of any robust policy.
A journalist at ‘The Economist’ wrote this year that there
are so many abductions in Nigeria that they rarely get into
the news. In the first six months of 2013, the West African
oil hub came well ahead of Mexico and Pakistan for the
highest number of kidnap attempts in the world. Security
experts believe that this statistic has deteriorated this
year. Many cases go unreported because of a reluctance
to involve corrupt law enforcement officials, preferring
instead to handle situations privately with the assistance
of security specialists, with ransoms being paid and staff
being released, often unharmed.
Safety and security goes far beyond disease, terror
and air crashes in Africa. Travel managers more
often than not deal with far more mundane events
such as travellers forgetting to take medicines on
their trip, people injuring themselves falling out
of hotel showers, or contracting a stomach bug.
All potentally non life threatening but may have a
serious impact on business continuity if not managed
effectively. However, it is worth noting that travellers
in Africa are at a higher risk when travelling in a car
than in a plane. Poor roads, dilapidated vehicles,
heavy traffic and an absence of enforced highway
rules make driving conditions treacherous. Travel
buyers and managers should ensure car rental
suppliers and chauffeur companies are well vetted.
There is, however, an unusual predicament to be
found, higher grade care travellers are more likely
to attract the attention of robbers or kidnappers.
“Waiting for the police to arrive at a minor traffic
accident may not be the safest approach.
You might wait a long time and
be at considerable risk of robbery”
aCtiOns
All organisations should:
ÓEnsure a process exists and is tested to track
travellers to, from and within Africa. This will
normally be achieved by linking your TMC or
GDS and your security provider.
ÓRecognise that Africa is unique, and a general
global, or even a generic African security policy
is insufficient.
ÓEnsure travellers are prepared by providing
relevant emergency contact numbers and
ensuring they know how to dial the numbers
from Africa. For those with company
supplied mobile devices, consider programing
international emergency numbers into phones
before issuing to travellers.
ÓEnsure travellers are pre-briefed if visiting
recognised trouble spots.
ÓEnsure the travel policy reinforces safety and
security measures such as booking through
preferred channels and behaving appropriately.
Larger organisations should at a minimum:
ÓConduct regular risk assessments.
ÓRigorously test traveller-tracking processes.
ÓPartner with a recognised global provider of
travel support services and ensure that travel
is completely integrated into the support
processes provided.
ÓConduct tabletop exercises to measure incident
response capabilities and ensure robustness
and that applicable roles are assigned.
ÓCreate and monitor incident and near-miss
registers, with findings used to adjust policy
and process.
ÓConsider GPS tracking devices for high risk
travellers and destinations.
SAFETY AND SECURITY
24
teChnOlOgy
1. What is your company device and
phone strategy?
ÓIssue company phones - 71%
ÓBring your own device - 29%
Ó53% Restricting app downloads on
company phones
Ó73% of buyers with no visibility of roaming
data/voice spend
2. How do you select a GDS?
ÓSelected by TMC - 83%
ÓSelected by buyer - 17%
Ó47% of buyers are planning to review GDS
selection in 2015, if currently selected
by TMC
Africa is the second largest and fastest growing mobile
market in the world with almost 650 million subscriptions.
African internet access via mobile is more than that of the
Middle East and marginally less than North America. This,
despite some areas suffering from unreliable electricity,
poor network coverage and costly equipment.
To understand the numbers, one must first understand
the drivers. Previously unconnected people in remote
African countries can now have access to information,
communication and banking where once they were
isolated. Seeing the immense opportunities, a large array
of the leading global cell phone and network providers
are active in Africa, with a myriad of businesses cropping
up offering phone charging services in rural regions
where electricity is scarce.
“There are more mobile phones in Uganda,
than there are lightbulbs”
3. Online booking
Ó52% of buyers use an online booking tool
across Africa
Ó79% have locked down usage in South
Africa only
Ó58% looking to expand usage of an online
booking tool in the next 12 months
4. Videoconference
Ó47% have VC available across all major
African markets
Ó37% have VC available in only some of their
African markets
Ó32% planning major upgrade of VC facilities
in the next 12 months
Online (self) BOOking tOOls
Online and self booking tools first made their appearance
in Africa, in South Africa, some eight years ago. For the
most part though, these tools are used for point to point
domestic travel only and travel buyers have highlighted
the lack of TMC consolidation as the main reason OBTs
are not gaining as much traction as expected, specifically
in other African regions that are less advanced
than South Africa. But with such a high appetite for
technology, and such mobile internet penetration, this
should make Africa a prime market for mobile booking,
providing travel buyers or mobile suppliers can ensure
that data coverage and appropriate roaming charges
are addressed.
In many of the key regions in Africa, including Ghana,
Kenya and Nigeria, TMCs, particularly those not
affiliated with global brands, often see online booking
as too complex, too expensive and are unaware of the
value it can bring to both buyer and supplier. Such
technology should not be viewed as exclusive to large
players and OBTs can increase transparency, efficiency,
reduce cost and help a travel agency transition into a
TMC. Technology providers should engage with the
independent market seeking to increase acceptance of
technology and ensure that technology is within reach
of all.
TECHNOLOGY
25
Internet and social media penetration
by top SSA countries by GDP
-source: internetstats.com
60%
50%
Internet
penetration
40%
Facebook
penetration
30%
20%
10%
Sudan and
* Note:
Cote D’lvoire FB
0%
videO COnferenCing
Travel buyers first turned to video conferencing
(VC) as an alternative to travel in the early years of
the Millennium. The motivation was to reduce their
company’s carbon footprint. However, following the
global financial crisis, VC was seen as a way to potentially
cut costs by replacing non-essential travel. In Africa, this
medium has struggled to gain traction. A large number
of buyers blame poor and expensive bandwidth. They
argue that better data around costs of travel would
enable IT departments to present a more compelling
case for higher-bandwidth technology.
Capturing an employee’s reason for travel at the time
of booking allows travel managers to better present VC
as an alternative. Some believe VC facilities are under
utilised because people do not trust the reliability of
telecoms connections. One progressive travel buyer said
the booking of VC facilities had been integrated into the
booking tool. This allows travellers to see alternatives to
travel when booking flights, maximising usage. Another
said that VC was part of an end-to-end solution, where
the booking engine and GDS were linked to the expense
system, which increased efficiency in the booking and
authorisation processes. Assuming the total trip cost
comes in at the pre-agreed level, the expense does
not need to be approved again. Most of the company’s
travel was either domestic in South Africa or to Europe,
so whether this would work within Africa has yet to
be seen.
Having a robust and extensive video conference
network can add further resilience to a companies
travel programme in times of crisis, such as the 2014
ebola outbreak, or between cities with poor or unsafe
transport options.
usage not available
innOvatiOn
As the saying goes, necessity is the mother of
invention. This was clearly demonstrated in East
Africa when the MPESA mobile payment platform was
created. In many areas of technology, Africa does
not need to go through the same iterative stages
that are considered normal in Western business
development. Borge Brende, the former managing
director of the World Economic Forum, recently said:
“In development, we talk about leapfrogging. It is the
ability of less developed countries to overtake more
advanced peers through the development of more
modern technology, systems and thinking. Africa is
doing this.”
Mobile technology is obviously important everywhere
in the world, but in Africa it is dominant. South
African innovation strategist, Toby ShapShak says:
“Elsewhere in the world, they talk of a mobilefirst strategy. In Africa it’s mobile only.” It is out
of necessity. Desktops and laptops are expensive.
Mobile channels make up more than 50% of Internet
connectivity for the African population and are driving
the economy. Kenyan software application, Ushahidi,
was originally developed to track reports of violence
during the post-election unrest in Kenya of early
2008, integrating text messages with crowdsourcing
applications. Since then the platform has been used
for many different applications including monitoring
federal elections in Mexico, tracking global Swine Flu
outbreaks and tracking medical supply stockouts in
Kenya, Uganda, Malawi and Zambia.
TECHNOLOGY
26
Mobile internet traffic by region
sample global domains
-source: Media24
90%
80%
70%
60%
Nigeria
50%
Kenya
40%
Ghana
30%
20%
10%
RSA
US
0%
Analysis from African media giant Media24 estimates
huge mobile only internet traffic (see chart), with
Nigeria leading the way with as much as 80% of traffic
coming from mobile devices when looking at a bundle
of internet domains accessed from different countries.
Statisticians, Statcounter estimate a more modest 24% of
African web traffic is through mobile, but this is still two
and a half times the amount they register in Europe.
glOBal distriBUtiOn systems (gds)
GDS is the engine room of travel technology, from
providing consolidated travel data, powering security
information to providing TMCs the ability to manage
BSP, and non BSP processes. Companies with successful
travel programmes typically open up dialogue with their
GDS to understand what they can offer, either directly
or via their TMC partners. Whilst only 17% of companies
interviewed select their own GDS in Africa, most were
part of global contracts. A further 47% were planning to
review this for 2015.
Understanding how a GDS can assist with offline content
such as guesthouses or non GDS hotels, is one area
where opening up dialogue can generate benefit by
increasing compliance to your travel programme, and
reinforcing the case for online booking, and perhaps
mobile.
GDS companies are very mature in Africa and typically
have extensive local market knowledge and staff in key
markets. Increasing GDS engagement can be a highly
effective way of further developing a travel programme
in this region by leveraging their wealth of expertise
from across the region.
TECHNOLOGY
27
aCtiOns
Data and roaming charges:
ÓTravel buyers should be more aware of
company roaming (both voice and data)
usage as there is a direct impact to the travel
programme. This is a real opportunity for
travel managers to add more value to their
organistions to ensure their travellers and
companies can avoid ‘bill shock’. Even if
traditionally ‘managed’ by IT, travel managers
should at least be having conversations with
IT departments to try to work together on
connectivity strategies that don’t break the
bank.
ÓEnsure appropriate Wi-Fi usage at hotels is
negotiated, including speed, download limits
and number of devices allowed to connect.
GDS:
ÓEngage with GDS partners to find out what
additional technology can be deployed to
enhance the travel programme - even if you
don’t have a direct contract, this should be a
tri-partite arrangement where your TMC is
included in the discussions
ÓEncourage suppliers to ensure that sites are
mobile and tablet enabled for enhanced user
experience when away from the office.
Video conferencing:
ÓVC should be deployed on key travel routes
particularly those with high use of internal
travel - prime for using such facilities.
Consider bandwidth issues in Africa, but
know that there are solutions that work
better than others. Ensure that content is
limited to reduce pressure on bandwidth.
(For instance – if doing online training via
VC for staff, flashy interactive content with
video’s etc is going to cause bandwidth
issues for African-based staff.)
ÓIt should not be limited to high-end facilities.
It should be supplemented by other
technology such as personal video (Skype or
Webex) along with instant messaging.
ÓTravel data should include a field for ‘reason
for travel’ enabling more strategic decisions
around video usage.
Online booking:
ÓConsider how/if mobile strategies could be
incorporated into the travel programme.
Consider not just desk top online booking,
but mobile too.
TECHNOLOGY
28
Payment sOlUtiOns
1. Rank the goals and drivers of your payment
strategy:
1st - Reduce fraud
2nd - Enable reporting
3rd - Manage costs
4th - Ease of use
2. Major payment type used:
ÓInvoice - 68%
ÓCash - 16%
ÓCard - 16%
3. Of the 16% of respondants paying by card,
breakdowns by country:
ÓSouth Africa - 57%
ÓAngola - 14%
ÓKenya - 9%
Ó Nigeria - 7%
ÓGhana - 0%
4. Expense reimbursement processes employed
in Africa:
ÓManual solutions - 38%
ÓElectronic including card auto-populate in
most markets - 10%
5. 31% of buyers aware of fraudulent activity
when paying for travel expenses in last
12 months
6. How was fraud identified?
ÓCard company notification - 35%
ÓMonth end reconciliation - 30%
ÓTraveller alerted - 25%
ÓSMS transaction alert from card company
- 10%
7. 36% launched criminal proceedings
8. 79% of respondents report the company
experiencing 1 to 3 cases of fraud per year
9. 81% received a full refund on fraud loss,
of which 85% refund was either from Card
company or Card insurance company
10. Average loss recorded $4600 with lowest
$100 and highest $20,000
ÓElectronic in most markets - 52%
In the absence of a consolidated TMC programme or
other centralised data source, a payment and expense
programme can be an invaluable way of sourcing data.
Some employees will inevitably book out of policy and
not through the TMC, but everyone will claim expenses.
For this reason, payment methods are often what drives
an effective travel programme - the correct payment
option can help buyers by giving them access to vital
data for improved supplier negotiations and the ability to
identify cost savings opportunities.
Organisations need to strive to have a balance between
efficient reimbursement of employees and payment of
suppliers, whilst ensuring accuracy, transparency and
auditability. In a region where ‘cash is king’ in many
countries, this is possibly one of the biggest challenges
in managing a corporate travel programme in Africa.
Having one form of payment for travelling round the
continent is normally not possible, and each payment
method, be it cash, card or credit account, carries a
risk and a cost to the organisation, either in real terms
(such as a merchant fee), or less visible (such as reduced
employee efficiency and time). Each option also carries
an administrative burden and risk which should be
considered when deciding on the strategy adopted.
Organisations should engage with regional professionals
and carry out a strategic review of their payment
options and processes, calculating each of these
components carefully.
invOiCe / BillBaCk
Agreeing billbacks with suppliers, and using the TMC as
a payment conduit, is very popular in Africa. It means
travellers neither have to carry cash nor a corporate
card. It also guarantees the buyer will get a quality bill
from the hotel.
However, despite strict instructions to the contrary,
travellers may be allowed to leave the hotel, leaving
extra costs such as minibar and food to be applied to
the bill back. Buyers should agree strict criteria for what
the bill is allowed to contain such as minibar, laundry
or food, but should agree a tolerance level to ensure
that the entire bill is not held up for small amounts. It
is also worth bearing in mind that hotel reception staff,
particularly across Africa, rarely like confrontation with
travellers on check out, so even with strict controls,
additional items may sometimes appear on bills. This is
a common occurrence in Africa and can provide
immense frustration and lack of trust between TMCs
and their clients, with invoices held up for payment due
to small discrepancies.
When a TMC is paid for air tickets on an invoice, they are
effectively funding a company’s travel programme and
carrying the risk of payment. This can cause distraction
in their goal from delivering service and helping to run
your travel programme.
PAYMENT SOLUTIONS
29
“We have cases where an entire months invoice
is paid late because of a discrepancy on a
hotel billback where a traveller has had a
coke from the minibar and the invoice is $3
more than anticipated - we often end up
having to write this off to save us hundreds
in bank charges.”
Physically paying invoices and processing bank transfers
across African markets can be tricky, expensive and
cumbersome, too. This can add to delays in processing
invoices with TMCs carrying this debt which in turn is
reflected in higher TMC charges.
Buyers should measure TMCs and hotels, on value
and service delivery, not on their ability to provide
extended lines of credit.
Payment product
Likewise, TMCs in particular should know and be able
to articulate their value in order not to win clients on
willingness to provide lines of credit alone.
Ultimately, buyers have to recognise that in order to
develop partnerships with leading suppliers, they need to
pay them efficiently. By doing so they can create better
internal processes, increase transparency and create
auditable processes for reducing fraud, both internal and
external and better manage the fear of fraud.
Using cards: how difficult can it be?
For an effective card programme to work, a country
needs to have merchants who accept them, banks
who issue them, governments who support them,
stable electricity to run point of sale infrastructure
and employers who trust their staff to carry them.
Pros
Cons
Cash
Ó Convenient - you don’t need to change money or
find an ATM
Ó Essential for small transactions such as airport trolley
or soft drink
Ó Can be used for small transaction - assuming correct
currency, then acceptance rarely an issue
Ó Crime risk and aides corruption
Ó Bulky and awkward to carry
Ó With some countries not allowing
foreign exchange to be taken
outside the country, you may need
to find an exchange bureau
Ó There is a cost to obtain and
handle cash
Card - waking card
Ó
Ó
Ó
Ó
Easy to carry and can be replaced if lost of stolen
Can guarantee hotel / car rental reservations
Cash advances can be obtained from ATMs
Crime and fraud can be limited through measures
such as 3D security, chip and pin and SMS
notifications
Ó Auto populate features can be set up in some
expense systems increasing efficiency for users and
reducing errors
Ó Enhanced data showing absolute amount spent,
creates an audit trail
Ó Acceptance sometimes a challenge
Ó Fluctuations of exchange rates can
be a disadvantage and additional
service charges on foreign
transactions
Ó Fee to activate a card
Ó Any fraudulent transactions often
only discovered when you return
home
Card - prepaid / ‘forex’ card
Ó Secure alternative for those who don’t have bank
accounts or don’t want their bank account disclosed
Ó Allows effective budgeting for a trip as can be preloaded with the required amount and topped up
as needed
Ó Easy to carry and can be replaced if lost of stolen
Ó Cash advances can be obtained from ATM’s
Ó Acceptance sometimes a challenge
Ó Fluctuations of exchange rates can
be a disadvantage and additional
service charges on foreign
transactions
Ó Fee to activate a card
Virtual pay cards
Ó Can replace the traditional bill-back by issuing a
single use card number,
locked down to supplier, amount and time frame
Ó Reduces risk of fraud
Ó Enhanced data captured on request that is merged
with existing card data for all transaction types
Ó Only currently available in South
Africa
Card - ‘lodge’ cards
Ó
Ó
Ó
Ó
Ó Often only suitable for air, rather
than all spend
Extended credit terms
Insurance often available to cover losses due to fraud
Enhanced and often real time data available
Cleans up your TMC relationship, as they can focus
on delivering service, rather than providing credit
Ó Enhanced data showing absolute amount spent,
creates an audit trail
PAYMENT SOLUTIONS
30
fraUd
There are many different levels of
fraud that exist in business travel.
External fraud is when a credit card
is cloned, or money is taken from
an account without the knowledge
of the cardholder. Internal fraud, or
misadministration, is also a common
challenge within travel programmes.
Africa has an unenviable international
reputation for fraud. Nigerian
scams have been widely covered in
European and North American press.
It is interesting, therefore, that the UK,
UAE, and US all have higher instances
of card fraud than South Africa (see
chart). Note: official statistics are not
available for other African markets.
“Some buyers recount how a
fraud incident in the past caused
them to move away from card
payments. But they have failed
to compare the cost of that
incident with the increased
cost of managing alternatives.”
Abolishing a corporate card programme because of fraud concerns
is, however, short sighted in most cases. One buyer said it was akin to
“throwing the baby out with the bath water”, given that most card
providers provide fraud cover via their own insurance companies. Use of
corporate cards increases the transparency in the travel supply chain.
For example, if you pay for an air ticket by card, you get a greater level of
transparency as its more difficult for a TMC to mark up fares. In Africa, the
audit trail provided by a card programme also makes corruption significantly
less likely. It’s easier for a traveller to be bribed by a corrupt visa official if
the they are carrying a pile of cash.
“It is a good idea to carry a ‘mixed purse’ of products when
travelling and it is important to find out what types of foreign
exchange products are accepted in the country you will be
visiting, as this will directly impact your ability to transact.
Although you may be able to use a card at an ATM and
merchants in many countries, there are still some countries
where cash is the preferred method for transacting.”
Tina du Toit – Standard Bank
Buyers should work with their card company to understand the fraud
merchant charge-back process and other measures to tackle fraud.
Instances of card fraud
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
-source: ACI Payment Systems 2012
Cardholders
Affected
(overall)
Cardholders
Affected
(last 5 years)
PAYMENT SOLUTIONS
31
aCtiOns
ÓConsider the whole process: When evaluating
the payment method for travel services,
thought should be given to the ease of use,
ability to obtain enhanced data, audit trail,
the costs through the supply chain and the
risk and probability of fraud. Only then can a
company make an effective decision as to the
most appropriate payment method.
» Be realistic about fraud and losses: all
payment types will be subject to fraud
» Implement a risk and loss register:
which clearly identifies the cause of
the risk and loss. For internal incidents,
mitigating action such as training and more
effective background screening of staff can
be considered
» Regardless of your payment type, ensure
that effective checks are undertaken to
identify fraud such as reconciliation and
spot checking / audits
ÓBest in class processes for card: Understand
the card companies dispute process and
consider taking insurance to cover you for
any losses. Understand your card company’s
fraud and reporting process.
ÓBest in class processes for billback: An
agreed tolerance level should be established
between buyer and TMC to ensure that
payment runs are not held up for insignificant
amounts of money.
ÓBest in class processes for cash:
» Travellers should be briefed on the
additional security risks of carrying cash,
such as robbery
» Travellers should submit receipts and
perform a reconciliation of all expenses
» Automate: Any manual process, such as
expense reporting is prone to error, and
inhibits the organisation to drive effective
reporting. Bringing in an electronic
expense system should be prioritised
across the region
ÓCommunicate: Even if buyers are not using
cards, or automated expense systems, they
should discuss options with suppliers to
consistently evaluate how an automated
programme can bring benefit.
» Implement effective fraud control
measures such as robust reconciliations,
spot checks, audits and, where possible,
SMS notification of unusual transactions
» Monitor card acceptance at the vendors
you require and meet regularly with
your card provider to ensure that card
acceptance is being increased in the
areas needed.
PAYMENT SOLUTIONS
32
1. Difficulty in obtaining visas for
Africa versus other regions:
ÓMore difficult - 58%
ÓSignificantly more
difficult - 17%
2. Extent to which challenges
obtaining visas restrict your
business activity in
Sub-Saharan Africa:
ÓSomewhat - 54%
ÓSignificantly - 15%
3. Do you use ‘grey’*channels
to obtain some visas for
your travellers?
ÓYes - 57%
ÓNo / not aware - 43%
*Grey channels are described as:
1. Using an intermediary to
obtain visas for a high service
fee which might go against the
official requirements as listed on
the embassy’s website
OR
2. Using tourist visas despite
travelling on company business
“True integration will take place
only if people are able to move
freely across the continent and
leaders need to take action to
make this happen.” AfDB.
visas
Visas allow countries to control and restrict business and leisure
visitors. They dictate the length of a person’s stay and what they can
and can’t do. Africa has some of the strictest visa requirements of any
region in the world. Experts believe these barriers are responsible for
stifling economic growth and intra-Africa trade. Restrictions across the
continent do not compare favourably to the G8 nations and South
East Asia.
According to the African Development Bank (AfDB), only five African
countries (Seychelles, Mozambique, Rwanda, Comoros and Madagascar)
offer visa-free access or visas on arrival to citizens of all African
countries. The DRC, Equatorial Guinea, São Tomé, and Sudan require
citizens from every African nation to apply for a visa. On average,
African citizens require visas to visit 60% of African countries, ranging
from 84% for Somalia to a low of 41% for The Gambia. Note that these
figures include tourist and business visas.
Some African governments use the visa application process as a way
of monitoring skills localisation programmes. Angola, for example, has a
stated aim of Angolonisation, which is to transfer skills to native workers.
International firms operating in the former Portuguese colony must make
sure 70% of staff are Angolan.
Companies in the oil and gas sector must submit plans detailing how they
intend to achieve that goal. Business visas for international workers must
also be approved by the Ministry of Petroleum (MINPET) so numbers
can be monitored and managed, and so that companies can be held
to their Angolanisation commitments. This process can be a drain on a
company’s resources, and reduces the ability for critical staff to travel at
short notice.
Some visa experts take a more cynical view of procedures across Africa.
While acknowledging localisation initiatives are important, they believe
embassies and high commissions use visas simply to generate revenue
from the international business community. Inefficient visa processes and
last minute rejections of visas significantly add to the total cost of a trip.
However, efforts are being made in certain quarters to improve the
situation for travellers. In May, the president of the AfDB, Donald
Kaberuka, led calls for regional integration in Africa and called for Visa
free travel. The initiative, launched at the World Economic Forum (WEF)
on Africa would promote travel across the continent. Kaberuka said
that the initiative was key to enhancing regional integration and that
easing visa constraints and removing other unnecessary barriers would
contribute to boosting trade and growth.
VISAS
33
Visitors to Kenya, Rwanda
and Uganda can now buy
a single East African tourist
visa. Unfortunately no such
arrangement exists for
business visas. Corporations
devote significant resources
to ensure business critical
visas can be obtained at
short notice.
A leading visa expert says:
“Companies often have to
employ protocol officers
to manage the process of
obtaining visas, and ferrying
around paperwork. They
will even stand in queue at
an embassy to safeguard an
appointment slot for a
senior executive.”
Business visa requirements
between economic regions
-Embassy via cibt.com
80%
70%
60%
50%
40%
30%
20%
10%
% visas
0%
Sub-Saharan Africa
SE Asia
G8 Nations
According to the WEF, improving visa facilitation could generate an
additional $206 billion for the tourism sector alone, and create as many
as 5.1 million new jobs by 2015.
aCtiOns
ÓUsing grey channels for visa processing represents a
significant physical risk for your employees (risk of arrest on
arrival), reputational damage to your company plus potential
risk against anti bribery regulations. Companies should do
everything possible to ensure that channels are legitimate
and that the organistaion and the individual are aware of
any risks.
ÓSecond passports should be obtained for travel intensive
employees where allowed.
ÓWhere possible travel managers should pre-empt and plan,
and, where possible, obtain multi entry visas.
ÓSome countries may allow diplomatic passports for high
ranking company officials and frequent travellers.
VISAS
34
a traveller’s PersPeCtive
Few travel managers, suppliers or even travel
consultants actually travel and thus don’t give much
real thought to the actual travellers - those road
warriors that regularly venture into territories
unknown, exploring new opportunities, forging new
connections and experiencing and sharing in many
of a travellers highs and lows’. A South African based
frequent traveller around the region shares his views:
Q: what is yOUr Biggest Challenge aBOUt
travelling in afriCa and why?
Without a doubt - Visas. I am convinced that the only
reason for visa’s is as a revenue stream for Embassies
to cover some of their costs! Are we not part of
SADC (Southern African Development Community)
for a reason? Why does one need to re-do biometrics
in person every time you are travelling to the same
country? Can they not keep your records on file? Why
does it take some Embassies two weeks to issue a visa
and others can do it in a few days?
This is not just Africa though - I applied for a Schengen
visa for Portugal and they were worse - taking three
weeks to issue.
Luckily in South Africa we are able to have more than
one passport, but I feel sorry for my colleagues on EU
passports trying to plan for visas and travel. Having
three passports does have its moments though. On
more than one occasion I have found myself with the
wrong passport in hand and not being able to travel to
where I need to be.
My biggest gripe with visas though is the extent to
which my company’s response times are affected.
‘We cannot do anything quickly as waiting
for visas creates such delays.”
Q: what are the differenCes Between
what seCUrity COmPanies tell yOU
aBOUt a destinatiOn and the reality
On the grOUnd?
I believe that most security companies, consultants and
managers have never been to most of the countries
that they make decisions about. They seem to rely on
third-party information and anecdotal information.
Reality is always very different. I see my colleagues
from Europe get out at Lagos with fear etched on their
faces after briefings from the firms security advisors.
“The reality is a calm demeanor, a smile and just
blending in is a far more effective safety measure
than having armed guards meet you on arrival.”
That said I do accept that as a South African,
I have a slightly different tolerance to risk than
other nationalities.
Q: a lOt has Been said aBOUt Payment
Challenges in afriCa. what has yOUr
exPerienCe Been?
Generally I have no problems nowadays and mostly
use a Visa or MasterCard - one needs to carry both as
some places only accept one or the other. The only
issue which occurs often is when their swipe machine
connectivity is down, but they still have the good old
manual back up.
Q: if yOU travel intO afriCa with sOmeOne
COming frOm say eUrOPe Or the Us,
what wOUld yOU tell them first?
Most airports are slow, traffic is chaos and the
infrastructure is old. Be streetwise in where you seek
assistance, stick to known brands, only use bottled
water and avoid ice, have local partners and support
planned in advance.
But most importantly - enjoy all that Africa is! African
cities generally have a “soul” that a lot of European
and American cities lack.
A TRAVELLERS PERSPECTIVE
35
PART 3
aPPendiCes
APPENDICES
ACTION CHECK LIST
Based on the findings and recommendations of the paper, this checklist has been designed as a simple guide to help you answer questions, or ask questions of your
business partners to ascertain the performance of the travel programme, and create development plans.
AIRLINES
YES
NO
N/A
COMMENT
YES
NO
N/A
COMMENT
YES
NO
N/A
COMMENT
1. Has your policy been adjusted for the nuances of African travel for example:
· Do you operate a time window by which the lowest fare can be found? In Europe with high
intensity routes a 1 hour or 2 hour window may be appropriate, where in Africa there may
only be one flight per day.
· Do you allow baggage wrapping services to be claimed as an expense?
2. Should you consider Premium Economy as it starts becoming more available on long haul
flights to/from Africa?
3. If you have local deals, are they available for all travellers? For example, if you have a
Kenya Airways contracted fare from Nairobi to Johannesburg, can fares also be made
available for Johannesburg originating travellers?
4. Can you work with your TMCs buying power to negotiate fares on your behalf?
5. Are you making use of Corporate Mileage Programmes such as Star Alliance Company
Plus?
6. Can you be using low cost carriers more?
HOTELS
1. What percentage of your hotel requirements are booked via your preferred channels?
2. Do you know the reason for any gap eg booked locally by host office?
3. In negotiating rates, are they negotiated globally, locally or both? Can you use local
negotiation power as well as centralised coordination to maximise savings?
4. Do you/should you include safety audits in the hotel selection process?
5. Does everyone in your company have access to the same negotiated hotel rates (consider
senior execs, local requirements such as guest houses)?
6. Could you use rate caps as a way of controlling costs?
7. Do you have to conduct a full RFP every year? For critical hotels, could you consider a
more relationship, rather than process based sourcing approach? So consider face to face
negotiations rather than ERFP.
TMCs
1. Approx. what % of your corporate bookings go through your corporate TMC?
2. If you use a global agency, do they provide standard and consolidated reporting?
3. Do you review the performance of the TMC with regular meetings?
4. Do you have reportable service level agreements?
5. Do you have contracts with all your TMCs in Africa?
6. If yes, does it contain the following:
· Contract length
· Payment terms
· Agreed services
· Consequences of non performance
· Termination
· Data protection / privacy clauses
7. What % of time do you breach the payment terms with your TMC and what is the cause
of this?
8. Does your TMC provide confidential benchmarking, such as policy or rates against their
other clients?
ACTION CHECK LIST
37
SAFETY AND SECURITY
YES
NO
N/A
COMMENT
YES
NO
N/A
COMMENT
1. Do you have a process to track your travellers itineraries?
2. Is this process automated?
3. Do you regularly test this?
4. What is your failure rate (instances of when you cant find a traveller) and have these
failures been investigated?
5. Do you have emergency contact numbers available for all travellers?
6. Do your travellers have emergency contact numbers with them when they travel?
7. Do you pre-brief travellers to known risk areas?
8. Does your travel policy adequately address traveller safety?
9. Do you conduct regular risk assessments on destinations and ensure that traveller
briefings are adjusted accordingly?
10. Do you conduct ‘table top testing’ to test your companies reaction and internal
processes to a major incident?
11. Do you benchmark your security approach through similar organisations? You can ask
your security partner to do this.
12. Do you maintain an incident and near miss register?
13. Do you use GPS locator devices for high risk travellers / locations?
14. How do you ensure that car transfers used are as safe as they can be (consider working
seatbelts / airbags / driver training)?
PAYMENT
1. Do you know what forms of payment are being used from all your African offices?
2. If using card:
· Do you monitor delinquency?
· Do you regularly engage with your card provider to increase card acceptance?
· Do you have adequate controls in place to monitor instances of fraud?
· Do you monitor spend on the card to ensure that cards are used as much as possible?
· Do you use data from the card to increase your negotiation potential with suppliers?
· Can you enhance the expense process by linking your card to your expense system to
provide auto population of expense items?
3. If using cash:
· Can you streamline the processes for issuing / receiving back cash from employees?
· Can you consider an alternative such as a pre-paid ‘forex card’ to reduce risk of fraud and
theft?
4. If using invoice / bill-back:
· Can the set up / reconciliation process be streamlined by allowing a ‘tolerance’ level so
that items with small differences can be processed rather than rejected for re-work?
· Are items ‘double handled’, ie are transactions approved before travel, approved again at
invoice receipt stage?
ACTION CHECK LIST
38
TECHNOLOGY
YES
NO
N/A
COMMENT
YES
NO
N/A
COMMENT
1. Do you manage the video conferencing technology in your company?
2. Are you aware of what video conference technology is available in your company?
3. Can you increase the use of VC by encouraging travellers, particularly non client facing
ones to use it more?
4. Can you invest in more VC technology by looking at where your top travel routes are?
5. Do you have a strategy for controlling roaming costs for travellers?
6. Do your hotel negotiations consider Wi-Fi (speed, limits) and number of devices?
7. Do you know what GDS is used by your TMC?
8. Can you engage directly with the GDS to understand what additional products or services
can be offered?
9. Can you implement mobile enabled online booking tools?
10. If you have issue company devices to travellers, can you limit the download of apps which
would encourage travellers to book 'off-program'?
VISAS
1. Do you use any ‘grey’ channels for visa processing?
2. Do you encourage (and reimburse the costs of) second passports to frequent travellers
(where allowed)?
3. Do you encourage travellers to obtain multi entry visas, even if there is a chance they will
not need them?
ACTION CHECK LIST
39
APPENDICES
aBOUt severnside COnsUlting
global travel manager and now consultant, Chris is able
to use this experience to equip his clients with the
tools they need to develop and maintain a robust, cost
effective and industry leading travel programme.
Severnside Consulting Ltd (SSC) was formed in 2010
to provide bespoke business travel management
support and to close the gap between supplier delivery
and buyer expectation. Since forming, SSC has
delivered successful projects in Africa, China, Europe,
Middle East, South America and the US, in industry
sectors as diverse as Construction, Energy, Financial
Services, Legal, Manufacturing, Oil & Gas Exploration
and Pharmaceutical.
Chris Pouney, the founder, has over 20 years experience
in the business travel industry. Through his unrivalled
experience of being a service provider, regional and
In addition to consulting, Chris provides his time writing
for industry publications, moderating and working at
many industry events and writing white papers for the
development of the industry.
Neema is Chris’ second white paper, the first covering
the Middle East in conjunction with ACTE was launched
in 2012 to great acclaim. Both papers carry the goal
of furthering the development of managed Corporate
Travel in these regions by empowering Travel Managers,
often based outside the region, to engage in more
informed debate about the opportunity and challenges.
In 2014, Chris achieved an M.Sc in Strategic Procurement
Management from Greenwich School of Management in
the United Kingdom.
Severnside Consulting Ltd | UK +44 (0) 7977 464449 | www.severnsideconsulting.com
aBOUt afriCan BUsiness travel assOCiatiOn (aBta)
With new international companies expanding into
Africa daily, ensuring that these companies and their
travellers are well serviced when doing business in
and around Africa is of vital importance not only to
the success of the business travel sector, but to
Africa’s continued economic growth and development
as a whole.
ABTA is the leading education-focused business travel
association in Africa. ABTA Members consist of the
key business travel brands on the continent, including
Africa’s leading airlines, TMCs, hotels, payment
providers, technology companies and GDSs; as well
as top global, multi-national and local corporations
sending travellers into and around Africa.
ABTA has a connected community of over 3,200
business travel industry contacts across the African
Continent, many of whom regularly attend ABTA’s 18
annual events hosted in Angola, Ghana, Kenya, Nigeria
and South Africa.
ABTA’s key goal is to elevate the level at which business
travel in Africa is managed, bought and sold, in order
for this industry to better support the economic
growth of the African continent.
ABTA is a member-driven association providing the
business travel industry with opportunities for
peer-to-peer engagement, debating travel industry
trends, challenges and opportunities, as well as
identifying regional and global solutions and best
practice. These opportunities are delivered across
a variety of platforms including travel management
forums, industry workshops, networking events and
online resources.
ABTA is headed up by Monique Swart, an industry
veteran and thought leader. She is passionate about
business travel education, innovation and collaboration
and through ABTA, strives to provide companies with
the resources they need to maximise the potential
of their business travel programmes, products and
services across Africa.
ABTA | South Africa +27 (0)11 888 8178 | www.abta.co.za
ABOUT SEVERNSIDE CONSULTING AND ABTA
40
APPENDICES
OUr Partners
Amadeus has been in Sub-Saharan Africa since 1992
through a distribution agreement with Air Mauritius
and today is present in 100% of the territory across
48 countries.
Amadeus is a leading provider of advanced technology
solutions for the global travel industry. Customer groups
include travel providers (e.g. airlines, hotels, rail and
ferry operators, etc.), travel sellers (travel agencies and
websites), and travel buyers (corporations and travel
management companies).
In 2013, Amadeus opened a Regional Solution Centre
located in Johannesburg, South Africa, which provides
support to all countries in Southern, East and Central
West Africa, giving our customers increased attention
and support due to the closer proximity of resources and
solutions more suited to their market requirements. This
underpins our allegiance to the region with 20 offices
and over 200 dedicated resources on the ground.
The Amadeus group employs around 10,000 people
worldwide, across central sites in Madrid (corporate
headquarters), Nice (development) and Erding
(operations), as well as 71 local Amadeus Commercial
Organizations globally.
Diners Club South Africa is recognised as one of the top
franchises in the world, wholly owned by Standard Bank.
Diners Club International is owned by Discover Financial
Services (NYSE:DFS), a direct banking and payment
services company with one of the most recognised
brands in US financial services. Established in 1950, Diners
Club International became the first multipurpose charge
card in the world, launching a financial revolution in
how consumers and companies pay for products and
services. Today, Diners Club is a globally recognised
brand serving the payment needs of select and affluent
consumers, offering access to nearly 500 airport
lounges worldwide, and providing corporations and
small business owners with a complete array of expense
management solutions.
In the pursuit of a balanced and rewarding lifestyle,
travel, dining and entertainment are important to
the Diners Club cardholder. With this in mind, Diners
Club South Africa has built an impressive portfolio of
respected wine-related assets and initiatives over the
years, including the Winemaker of the Year award, the
Winelist Awards, and has recently acquired both the
world-renowned Platter’s South African Wine Guide
and the Rossouw’s Restaurant Guide. Diners Club South
Africa recently launched its own rewards programme
called ClubMiles, an exclusive member loyalty
programme offering frequent flyers more flexibility
regarding choice of airlines, flights and seats, as well as
the opportunity to pay for airport taxes with air miles.
Diners Club cards are accepted in more than 185
countries and territories at millions of merchant
locations, and offer access to more than 1 million
cash access locations and ATMs.
OUR PARTNERS
41
Increasingly our clients are expanding overseas. To
support this growth we developed a robust global
presence supported by infrastructure that enables
a tailored and local approach to managing a global
travel programme. As a founding partner of Global
Specialist Markets (GSM), we deliver an industry leading
and service focused proposition in over 46 countries.
Our Global Account Managers ensure that your
management information, service level agreements,
contract negotiation and duty of care are managed
seamlessly across the globe.
Reed & Mackay is a corporate travel management
company for high performance professionals with
specialist and exacting requirements. Exceptional
service is delivered through attention to the smallest
of details and with the support of our own unique
technology, we ensure that nothing is left to chance
and savings are consistently delivered. Our commitment
to quality is evidenced through certification to the
International standards, ISO27001 (Data Security) and
ISO22301 (Business Continuity); a position uniquely
held by Reed & Mackay.
Since 2009,Reed & Mackay has seen a rise in air
bookings to Africa of over 50%. To support the
developing needs of our client base we created a
specialist Africa travel desk. This enables knowledge
share across the business and proactive assistance
to clients.
Through Reed & Mackay PRO-ACT we enable business
across the globe through pre-emptive travel risk
mitigation including advanced traveller tracking, critical
destination risk information, educational material and a
comprehensive and mobile communication platform.
OUR PARTNERS
42
Kitso Consulting is an
innovative and professional
Business Management
Consulting and Research
provider, with a specialist
focus in corporate travel
management. A highly
qualified and experienced
team offers succinct and practical business solutions
in performance and productivity management,
organisational design, supplier optimisation consulting
and augmentation of the full corporate managed
travel programme.
Our philosophy of generating real business change
drives the simple and straightforward approach that
we have successfully applied to our blue chip clients
operating in South Africa, Africa and around the world.
The team’s skills are enhanced by associations and
relationships with a network of key business partners
globally, enabling the delivery of practical, cutting
edge solutions.
Lia is friendly and modern, designed to be used by
travellers and designated travel requisitioners within
your organisation. It offers the most competitive flight
prices on all airlines in South Africa and includes a full
range of accommodation, car and shuttle hire options
making it a joy to use.
Lia is a fast, easy to use corporate travel system that
reduces booking time, lowers travel agent fees and
ensures bookings comply with corporate travel policies.
Plus it can be used online or on-the-go on your mobile
phone with the Lia Travel App.
MasterCard is a technology
company in the global
payments industry.
We operate the world’s
fastest payments
processing network,
connecting consumers,
financial institutions,
merchants, governments and businesses in more than
210 countries and territories.
The app allows users to take control of their trip with
the built-in manage bookings features which allows
users to make bookings and changes, keeping them
on the right track. Trip claims are also made easier by
submitting claims via the app.
Travel With Lia - your personal travel assistant.
MasterCard’s products and solutions make everyday
commerce activities - such as shopping, traveling,
running a business and managing finances - easier,
more secure and more efficient for everyone.
Follow us on Twitter: @MasterCardMEA and
@MasterCardNews, join the discussion on the Cashless
Pioneers Blog and subscribe for the latest news on the
MEA Engagement Bureau.
OUR PARTNERS
43
Headquartered in Chicago with nearly 40 offices
worldwide, Preferred Hotel Group is comprised
of more than 650 independent hotels and resorts
in over 85 countries. It provides strategic group,
corporate, and leisure sales, integrated marketing
solutions, comprehensive revenue management, global
connectivity through reservations services, progressive
distribution technology, and individualised guest
support to members.
Travelport is the platform that is redefining travel
commerce for our customers. We power travel on a
global scale by connecting buyers and sellers through
traditional, online and corporate channels using the
most advanced travel technologies and platforms
in existence.
With more than 1.3 million loyal guests worldwide,
Preferred Hotel Group continuously expands on
its services for travellers. Within the past five years,
the company has introduced a variety of branded
programmes designed to enhance guests’ experiences.
These include the innovative points-based loyalty
programme iPrefer; Preferred Pride, a collection of
TAG-approved or IGLTA-member hotels; Preferred
Family, a collection of properties certified to provide
rich experiences for travellers of all ages; and the
celebrated resorts of Preferred Golf.
We provide unrivalled content including scheduled
airline flights, low cost carriers, hotels, rail providers or
airline ancillaries like seats, bags and on-board Wi-Fi.
We’re transforming the way your chosen travel agency
can access this content by developing innovative and
intuitive tools to search, compare and book the most
relevant travel choice for you.
Travelport has a presence in over 170 countries,
approximately 3,600 employees and reported 2013
net revenue of $2.1 billion. Travelport celebrated its
40th anniversary in 2011, and is a privately owned
company headquartered in Atlanta, USA.
The airline has gone from strength to strength. Now
based at Gatwick, Heathrow and Manchester airports,
it operates long-haul services from Heathrow to New
York (Newark and JFK), Los Angeles, San Francisco,
Washington, Boston, Miami, Hong Kong, Johannesburg
Shanghai, Lagos, Dubai, Mumbai and Chicago.
Since it was founded 30 years ago, Virgin Atlantic
Airways has become one of the world’s leading
airlines serving the world’s major cities. Virgin Atlantic
is the quintessential story. It has every ingredient:
the small newcomer taking on the giant and
complacent establishment, the people’s champion
introducing better service and lower costs for
passengers with a reputation for quality and
innovative product development.
Virgin Atlantic operates a three class service: Upper
Class, Premium Economy and Economy. Virgin Atlantic
launched the Upper Class Suite in November 2003 - a
product which has won some of the most prestigious
design awards in the industry.
OUR PARTNERS
44
APPENDICES
BUsiness travel resOUrCes in afriCa
JOUrnals | BlOgs tO read | sUBsCriBe tO:
Africa.com
Africa.com
www.africa.com
African Travel Quarterly/ATQ News
Online publication
www.atqnews.com/?Itemid=101
Buying Business Travel
Industry publication and online
www.buyingbusinesstravel.com
Business Traveller Africa
www.businesstravellerafrica.co.za
Business Travel News
Online publication
www.businesstravelnews.com
Travel Africa News
Online publication
www.travelafricanews.com
Travel Buyer + Meet
www.travelbuyer.co.za
Travel Industry Review
www.tir.co.za
Travel & Business News
Online Blog
www.travelandbusinessnews.blogspot.com
Travel News Weekly (TNW)
Industry Publication
www.nowmedia.co.za/travel-News-Weekly
Travel Weekly
Online publication
www.travelweekly.com
African Business Travel
Association (ABTA)
Industry Association
www.abta.co.za
African Travel & Tourism
Association (ATTA)
www.atta.travel
African Travel Association (ATA)
www.africatravelassociation.org
Global Business Travel
Association (GBTA)
www.gbta.org
Africa Travel Week
Travel Industry Expo
and Education
www.africatravelweek.com
Akwaaba: African Travel Market
and Education
www.africantravelmarkets.com/aftm
Indaba
Travel Trade Show
www.indaba-southafrica.co.za
World Travel Market Africa (WTM)
and Education
www.wtmafrica.com
Angola
Online Country and Travel
Information
www.welcometoangola.co.ao
Ghana
Information
www.ghana.travel
Kenya
Information
www.tourism.go.ke
Nigeria
Information
www.tourism.gov.ng
South Africa
Information
www.southafrica.net
indUstry assOCiatiOns:
events tO attend:
COUntry infOrmatiOn:
BUSINESS TRAVEL RESOURCES IN AFRICA
45
APPENDICES
with thanks
This paper reflects the views, thoughts and experiences of the corporate travel Industry at-large across Africa and
beyond. I would like to thank the following people for their time, energy and commitment during the production of
this paper:
PrOJeCt steering grOUP
Other inPUt
Alan Reid - PSCM Solutions
Carole Graaf - Ericsson
Andrew Shaw - Amadeus
Ebrahim Matthews - Diners Club
Caroline Daniel - Preferred Hotel Group
Felix Attua-Afari - Bluecube Travel (Accra)
Christina Tsakos - Travelport
June Crawford - Board of Airline Representatives of
South Africa (BARSA)
Howard Stephens - Nedbank
Jodi Ann Kassel - Cerebra
Kim Koen - Kitso Consulting
Leáne Walters - Diners Club
Leighton Simms - Cisco
Lyndsey Atkins - Reed & Mackay
Kagiso Dumasi - BCD Travel
Lee-Ann Shepherd - Diners Club
Louis Nel - Corporate Legal Facilitator
Lynne Heckler - Diners Club
MaryAnn Harvey - Wings Travel
Mohsin Jassat - Travelport
Natasha Rautenbach - Travel Management and
Procurement Specialist
Nick Smit - Media24
Rebecca Deadman - Bluecube Travel (London)
Shifrah Cohen - Cisco
Tina du Toit - Standard Bank
Simon Newton-Smith - Virgin Atlantic
I would also like to thank the numerous travel industry
stakeholders who have completed surveys, been
interviewed or have been part of the benchmarking
exercise.
Tom Sell - Reed & Mackay
Tracey Land - Amadeus
Virginia Miller - Mastercard
PrOdUCtiOn team
Elan Ressel - Orient8
Jocelyn Gray - Graphic Designer, Zenith Design
Martin Ferguson - Freelance journalist and
communications consultant
Finally, I would like to thank Monique Swart, Founder of
the African Business Travel Association (ABTA), for her
partnership, commitment, vision and expertise during
the production of this paper.
WITH THANKS
46
APPENDICES
glOssary
AAVOTA
Angolan Travel Agents and Tour
Operators Association
IATA
International Air Transport
Association
ABTA
African Business Travel Association
ICAO
ACSA
Airports Company of South Africa
International Civil Aviation
Organisation
ACTE
Association of Corporate Travel
Executives
IMF
International Monetary Fund
IOASA
IATA Operational Safety Audit
ADR
Average Daily Rate (hotel)
KATA
AfDB
African Development Bank
Kenya Association of Travel
Agents
AFRAA
African Airports Association
LGBT
ASATA
Association of South African
Travel Agents
Lesbian, Gay, Bisexual and
Transgender
LPC
Late payment charges
ATA
African Travel Association
MEA
Middle East and Africa
AU
African Union
NANTA
BAR
Board of Airline Representatives
(airline) or Best Available Rate
(hotel)
National Association of Nigerian
Travel Agents
OECD
BBBEE
Broad Based Black Economic
Empowerment (South Africa)
Organisation for Economic
Cooperation and Development
(currently 34 members states but
non in Africa)
BSP
Billing Settlement Plan
POPI
Protection of personal information
ACT (South Africa)
COMESA
Common Market for Eastern and
Southern Africa (Currently 20
member states include Egypt,
Libya Ethiopia and Kenya.
REC
Regional Economic community
such as include COMESA,
ECOWAS and SADC
DRC
Democratic Republic of Congo
RSA
Republic of South Africa
ECOWAS
Economic Community of West
African States (currently 15
member states including Nigeria,
Ghana Senegal and Cote D’Ivoire)
SADC
Southern African Development
Community (Currently 15
member states including South
Africa, Angola, Mozambique and
Zimbabwe)
EMEA
Europe, Middle East and Africa
SSA
Sub-Saharan Africa
FMCG
Fast Moving Consumer Goods
TCO
Total cost of ownership
GATA
Ghana Association of Travel
Agents
TMC
Travel Management Company
GBTA
Global Business Travel Association
UN
United Nations
GDS
Global Distribution System
VOA
Visa on arrival
Hub
An airport designated by an
airline as a centralised base of
operations.
WEF
World Economic Forum
WTO
World Tourism Organisation
YD
Yamoussoukro Decision
GLOSSARY
47

in sUB-saharan

Transcription

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