Tag Archives: tour operator

Ja wohl: German tourist numbers to the Cape on the increase!

Given the near drought of UK accommodation bookings for the coming summer season, it is gratifying to see an above average number of bookings from German tourists.  A recent visit to South Africa, and to Cape Town specifically, of a group of German travel agents should see an even greater number of German tourists.

The 2010 Soccer World Cup led to the immediate benefit of German bookings, given the outstanding coverage our city and country received on each of the days that a German team played during the World Cup.  German TV station ZDF, using our ex-Miss South Africa Jo-Ann Strauss as its presenter, and directed by local resident Dagmar Schumacher, broadcast from a number of destinations around the country for an hour prior to each match.

Last week a group of 55 travel agents from Meier’s Weltreisen, a tourism company specialising in long-distance package tours for Germans and Austrians, including the rental of cars and campervans, as well as offering tailor-made tours, visited South Africa, and spent time in Cape Town too.   Meier’s Welreisen is one of the largest German tour operators, and is celebrating its 30th year of operation this year.

“Germany is a key and crucial tourism market for South Africa, and we invest significantly in encouraging Germans to visit here. While our arrivals from the country are already posting a strong recovery, more than 17.5% increase recorded for the first five months of 2011, we also recognise the need to continue strengthening trade relations as an avenue to long term sustainable growth”, said Fiona Buchner, Regional Director: Europe, of SA Tourism.

The itinerary of the Meier’s Weltreisen group visit, organised in conjunction with SA Tourism, SAA and Private Safaris, included Johannesburg, Sun City, the Garden Route, the Eastern Cape, Madikwe Game Reserve, and the Western Cape.  Buchner said that over and above showing the agents the tourist sites, they also wanted to show them the ‘welcoming people and enriching experiences‘ of the country, being the ‘typical encounter that the German traveller sees’. Meier’s Weltreisen Director of the Africa Division, Martina Beeken, said: “South Africa is one of our most important partners in terms of long-haul travel and we look forward to fully experiencing the fascinating cultural mix; warm, friendly and welcoming people and the beautiful scenery that South Africa offers.  South Africa is a world-class tourism destination with an outstanding hospitality offering of which service, accessibility, and value for money are the foundation”. Fantastic praise indeed!

In Cape Town the group was spoilt with a welcome dinner at which Cape Minstrels performed, an Amazing Race-style event through the V&A Waterfront, ‘champagne and oysters’ (one would hope that it was good Winelands MCC!) at Cape Point, and a transfer to the Winelands in vintage cars, reports The Event.

The Whale Cottage Portfolio has seen a marked increase in bookings from German guests, some being return visitors, and others booking at Whale Cottage Hermanus in particular, to see the whales, guests seeing listings about the guest house in a number of German travel guides.

It is surprising and disappointing that Cape Town Tourism and Cape Town Routes Unlimited appeared to not have been involved in the visit by the Meier’s Weltreisen travel agents, in that no welcome was accorded the group via Twitter or media presence!

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter:@WhaleCottage

Majority of Cape Town hotels not reacting to tourism crisis!

Three months ago we conducted a survey of top-end hotel rates in Cape Town.  Given the tourism crisis in the Cape, I repeated the survey on Monday, calling the same hotels, asking them for their August rates.  Ellerman House remains the most expensive Cape Town hotel by far, starting at R5000 per room, and the Peninsula All Suite Hotel remains the least expensive 5-star hotel, at R1500 per room.  The survey found that the average rate of the sixteen 5-star Cape Town hotels is R 2715 per room, just under R1400 per person, an average decrease by 8% relative to the May rates.   Across all 27 hotels surveyed, the average rate per room is R2227, or just over R1100 per person, only 8 % lower on average than in May. 

Once again it was interesting to hear how the calls were handled, most hotel reservation departments asking careful questions, to identify if the caller was a travel agent/tour operator or a corporate caller, the questioning being very specific in this regard. Holders of a South African ID book or a Protea Hotel Prokard would have had different rates quoted.  Few hotels called had a rate sheet from which to quote immediately, having to access their computer for the ‘best available rate’ information, costing time.  I was shocked at the poor quality of the call handling and quoting by the hotel Reservations departments, quoting odd rates (i.e. not rounded off) very quickly, making it difficult to understand and record them accurately; interrupting while one was still speaking;  having a radio blaring in the background, affecting their ability to understand and hear the request; not all quoting rates with breakfast included, despite being asked for this rate (Protea Hotels quote room only, and refused initially to quote the add-on breakfast rate); an hotel line rang engaged three times; another hotel line was not answered at all; one hotel had a trainee answer the phone, and she did not know that hotel’s telephone number;  one staff member sounded in the depth of depression, as if she hated her job; one hotel did not disclose that it is undergoing major renovations, and its rates have not changed due to the renovations; and one hotel switchboard put me through to the kitchen when I asked for reservations, and I had to call again, as they could not transfer me back to the board.  Worst of all for the hoteliers whose rooms the staff have to sell is that only one (Victoria Junction Hotel) of the 27 hotels I called had a call to action, asking if I would like to book!

Some hotels have not changed their rates in the past three months, or only by a small percentage.  The Protea Hotel Fire & Ice increased its rate by an astounding 64 % to R1480 per room, making this 3-star hotel more expensive than a number of 4-star hotels.  Interesting is that a number of 4-star hotels are more expensive than some 5-star hotels.  The Queen Victoria Hotel rate has increased by 25 % relative to its opening special rate.  However, only eleven of the surveyed 27 hotels dropped their rates, noticeably the Newmark Hotels’ The Ambassador and Dock House (by 35%), and V&A Hotel (by 40%). The Cullinan Hotel has also dropped its rate sharply, by 30%, as have the Westin Grand Cape Town Arabella Quays, the Twelve Apostles, and the Crystal Towers hotels.

The rates were checked for 3 – 6 August per room for 2 adults sharing and inclusive of Breakfast per day, so as to compare the rates fairly.  We added breakfast to the rates where these were quoted separately.   We have ranked the hotel rates from most to least expensive, and reflect the rate change relative to our survey for May 2011 in brackets:

Ellerman House, 5 star, R5000 – R15700 (the new villa has 2 rooms offered at R48600 and 3-rooms at R60500), Tel (021) 430-3200 (no rate change)

Cape Grace Hotel, 5 star, R 4980 – R 14 530 for the penthouse, Tel (021) 410-7100 (10% rate increase)

Cape Royale Luxury Hotel, 5 star, R 3590 – R20816 for the Presidential Suite.  Tel (021) 430-0500 (1% rate increase)

One&Only Cape Town, 5 star, R3489 for South Africans – R5590 for non-South Africans. Tel (021) 431-5888 (10 % rate decrease)

Table Bay Hotel, 5 star, R3166  Tel (021) 406-5000 (International rate dropped, no rate change)

Mount Nelson Hotel, 5 star, R 3000 – R 9000. Tel (021) 483-1000 (no rate change)

15 on Orange Hotel, 5 star, R 2620 – R 2820, Tel (021) 469-8000 (5 % rate decrease)

Dock House, 5 star, R2430 (but pay for 2 days, stay for 3 days offer). Tel (021) 421-9334 (35% rate decrease)

Queen Victoria Hotel, not graded yet but seeking 5 stars, R 2350 – R 2715, Tel (021) 418-1466 (25 % rate increase from its opening special)

Twelve Apostles, 5 star, R  2190 – R  3940.  Tel (021) 437-9000 (24% rate decrease)

Westin Grand Cape Town Arabella Quays, 5 star, R 2160 – R 3640. Tel (021) 412-9999 (27 % rate decrease)

The Taj Hotel, 5 star, R 2150 – R 2650. Tel (021) 819-2000 (2% rate decrease)

Crystal Towers Hotel & Spa, 5 star, R 1700 – R3250.  Tel (021) 525-3888 (20% rate decrease)

V & A Hotel, 4 star, R 1640 – R1905 (but special pay 2 days stay for 3 days offer), Tel (021) 415-1000 (40% rate decrease)

Commodore Hotel, 4 star, R1600 – R 7780.  Tel (021) 415-1000 (no rate change)

Portswood Hotel, 4 star, R 1600 – R 3960.  Tel (021) 415-1000 (no rate change)

Bay Hotel, 5 star, R1600 – R2100 for South Africans, R 2600 – R 5500 for non-South Africans.  Tel (021) 438-4444 (no rate change)

Cullinan Hotel, 5 star, R 1515 – R 3400.  Tel (021) 415-4000 (30 % rate decrease)

Peninsula All Suite Hotel, 5 star, R 1500 – R 3240.  Tel (021) 430-7777 (4% rate decrease)

Protea Hotel Fire & Ice Hotel, 3 star, R 1 480 – R 2300, Tel (021) 488-2555 (64% rate increase!)

Winchester Mansions Hotel, 4 star, R 1470 – R 3390.  Tel (021) 434-2351 (no rate change)

President Hotel, 4 star, R 1460 – R 2550. Tel (021) 434-8111 (no rate change)

Southern Sun Waterfront Hotel, 4 star, R1450 – R 3000. Tel (021) 409-4000 (17% rate decrease)

Cape Sun Hotel, 4 star, R1300 – R 5500.  Tel (021) 488-5100 (13% rate decrease)

Ambassador Hotel, 4 star, R 1250 – R 1950 (but stay for 3 and pay for 2 nights offer), Tel (021) 439-6176 (35% rate decrease)

Protea Hotel Breakwater Lodge, no star grading, R 1220 standard, R1465 business rooms. Tel (021) 406-1911 (5% rate decrease)

Victoria Junction Hotel, 4 star, –  Tel (021) 418-1234 (Only re-opening in September, with rate of R1990)

On Moneyweb yesterday, the FEDHASA hotel association was quoted as saying that the ‘hotel industry is being hard hit by the economic climate and there is very little light at the end of the tunnel’. FEDHASA CEO Brett Dungan, who tried to sell South African hotels down the MATCH river for the World Cup, is quoted as saying that hotel rates have come down ‘dramatically’ (by about 10%, according to him) in the past three years, and that hotel occupancy has decreased by 10%.  The African Sun hotel group, which operated the 5-star The Grace and The Lakes Hotel and Conference Centre in Johannesburg, has not renewed its operating agreement with these two hotels, saying that the 5-star hotel industry in Johannesburg is ‘no longer sustainable’!  The Southern Sun on Grayston Drive in Sandton is also expected to close its doors next year.  Singing a somewhat different tune, to that of a few weeks ago, Arthur Gillis, CEO of Protea Hotels, expressed his optimism for the industry.  Location is the prime asset of a hotel, he said. “I don’t think the industry is in trouble.  I think certain individuals and institutions are in trouble”, he said.  Many would disagree!

POSTSCRIPT 3/8: Cape Town Tourism has sent the following response to this blogpost: “Cape Town Tourism met with hoteliers recently to review the value proposition of luxury hotels in Cape Town in particular. The outcome of our meeting and position on price, value and demand will be included in our next industry communication and feedback given at the industry sessions scheduled for next week.  As alluded to by MEC Winde, business will react to pressures in different ways as they see fit in terms of their own strategies, market demands and business imperatives. It is common knowledge that published rates are not necessarily what are achieved, particularly in the current climate. Whilst we can offer advice, intelligence, guidelines and input in terms of customer feedback and trends, the market will dictate and business will adjust to market demands as they see fit. Our concern must be with the over-all value proposition of the destination i.e. full pallet of accommodation, experiences, restaurants and services rather than too much focus placed on one segment of the industry. Here is an extract from our industry communication to be published:  It is clear that the current depressed nature of arrivals has more to do with externalities and the consumer climate than with accommodation pricing. Cape Town boasts an exceptional, quality product offering and if you look at the complete pallet of accommodation and, experiences on offer, excellent value. We don’t want to undermine the strength of our destination brand by devaluing it. Visitors to Cape Town leave the destination overwhelmingly impressed and willing to return. Post World Cup figures found that 92% of foreign visitors said they would recommend South Africa to others and 96% said they would return. This does not suggest a fundamentally flawed product or pricing problem.  Cape Town boasts some of the world’s best small hotels, B&B’s and guest houses that are competitively priced and offer excellent value for money. The fact that Cape Town has a luxury hotel offering that compares with, and in many instances exceeds, our competitors in terms of quality and setting is an asset to our destination. It is commonly recognised that destination price perceptions are driven more by travel time and distance (transportation costs) than by in-destination costs. There is no evidence to suggest that Cape Town’s in-destination costs have detracted from its value proposition. If we can address the demand problem we face, then the cost of flights should become more competitive.”

POSTSCRIPT 3/8 : Provincial Minister of Tourism Alan Winde has responded as follows: “It is always interesting to see how markets and management react to these pressures. I am also very interested in the new season where we have seen new airlift directly to CT. From France, Switzerland, UAE, Zambia and more in negotiation at the moment. I have asked for a report on our market fact into these places. This will only be good news if we see bums in seats. I will keep you posted once I get the report”.

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com  Twitter: @WhaleCottage 

Hotels in Cape Town offer good range of rates, but discriminatory to foreigners

An article in the Cape Business News, entitled “Fedhasa to monitor Cape hotel pricing”, echoed a promise of such a survey by FEDHASA Cape Chairman Dirk Elzinga at the recent Tourism Destination Conference.  Elzinga promised that his association would conduct the survey in response to the accusation by Conference speaker and Cape Town Routes Unlimited Chairman Peter Bacon as well as provincial Minister of Tourism Alan Winde, that Cape Town’s hotels are expensive, and do not reflect the law of supply and demand, which should bring down rates, given poor demand, thereby giving our city a bad reputation, it was alleged. 

Given that FEDHASA Cape still has not conducted the promised survey, I decided to do my own independent survey last week, to get a feel for pricing of the largest and best known Cape Town hotels, asking them for their May rates.  Ellerman House is the most expensive Cape Town hotel by far, starting at R5000 per room, and the Peninsula All Suite Hotel is the least expensive 5-star hotel, at R1570 per room.  The opening offer of R1875 per room at the Queen Victoria Hotel is exceptional, given what it offers.  Interesting too is that a number of 4-star hotels are more expensive than some 5-star hotels.  The survey found that the average rate of the sixteen 5-star hotels surveyed is R2939 per room, just under R1500 per person.   Across all 27 hotels surveyed, the average rate per room is R2419, or just over R1200 per person, not cheap given that it is winter in May, and that there is poor demand. 

It was interesting to hear how the calls were handled, most hotel reservation departments asking careful questions, to identify if the caller was a travel agent/tour operator, single or double, a corporate business client, South African ID book holder, and/or a Protea Hotel Prokard holder, all of which would have affected the rate quoted.  Few hotels called had a rate sheet from which to quote immediately, having to access their computer for the information, costing time.

The rates were checked for 3 – 6 May (or the dates nearest these if one or more dates were fully booked already), per room for 2 adults sharing and inclusive of Breakfast per day, so as to compare the rates fairly.  We added breakfast to the rates where these were quoted separately.   We have ranked the hotel rates from most to least expensive:

Ellerman House, 5 star, R5000 – R15700, Tel (021) 430-3200

Cape Grace Hotel, 5 star, R 4510 – R 5680, Tel (021) 410-7100

One&Only Cape Town, 5 star, R3889 for South Africans – R5990 for non-South Africans. Tel (021) 819-2000

Dock House, 5 star, R3790 (but pay for 2 days, stay for 3 days offer). Tel (021) 421-9334

Cape Royale Luxury Hotel, 5 star, R3565.  Tel (021) 430-0500

Table Bay Hotel, 5 star, R3166 for South Africans, R 6000 for non-South Africans, Tel (021) 406-5000

V & A Hotel, 4 star, R3115 (but special 2 days pay for 3 days stay offer), Tel (021) 415-1000

Mount Nelson Hotel, 5 star, R 3000. Tel (021) 483-1000

Westin Grand Arabella Quays, 5 star, R 2960. Tel (021) 412-9999

Twelve Apostles, 5 star, R2865 – R4480.  Tel (021) 437-9000

15 on Orange Hotel, 5 star, R2770 – R2970, Tel (021) 469-8000

The Taj Hotel, 5 star, R2200. Tel (021) 819-2000

Cullinan Hotel, 5 star, R2150.  Tel (021) 415-4000

Crystal Towers Hotel & Spa, 5 star, R2120 – R3220.  Tel (021) 525-3888

Ambassador Hotel, 4 star, R1920 (but stay for 3 and pay for 2 nights offer), Tel (021) 439-6176

Queen Victoria Hotel, not graded yet but seeking 5 stars, R1875 special opening rate until July, Tel (021) 418-1466

Southern Sun Waterfront Hotel, 4 star, R1750. Tel (021) 409-4000

Victoria Junction Hotel, 4 star, R 1686. Tel (021) 418-1234

Commodore Hotel, 4 star, R1600.  Tel (021) 415-1000

Portswood Hotel, 4 star, R 1600.  tel (021) 415-1000

Bay Hotel, 5 star, R1600 – R2100 for South Africans, R 2590 – R3690 for non-South Africans.  Tel (021) 438-4444

Peninsula All Suite Hotel, 5 star, R 1570.  Tel (021) 430-7777

Cape Sun Hotel, 4 star, R1500.  Tel (021) 488-5100

Winchester Mansions Hotel, 4 star,  R1470 – R1930.  Tel (021) 434-2351

President Hotel, 4 star, R1460 – R1660. Tel (021) 434-8111

Protea Hotel Breakwater Lodge, no star grading, R 1295 standard, R1665 business rooms. Tel (021) 406-1911 

Protea Hotel Fire & Ice Hotel, 3 star, R 900, Tel (021) 488-2555

To contrast the rates of hotels in the city, a rate survey was also conducted amongst the 24 members of the Camps Bay Accommodation Association, consisting of mainly 4-star guest houses.  The average May rate for the Association members is R766 – R1173 per room, the lowest rate being R500 per room.  The most expensive rate is R1600 for the 5-star Atlantic House.  Guest houses have dropped their winter rates by up to 50 % for many years already, understanding about demand and supply

What is most disturbing is that some hotels are offering South Africans better rates than they would offer international guests, very short-sighted in our opinion, given that it signals to international guests that they are not as desired, and means that they could be staying away from Cape Town and going on holiday elsewhere.  Price discrimination against foreigners is something the provincial Minister of Tourism Alan Winde should urge FEDHASA Cape to fight against, and to encourage hotels to drop this practice.

POSTSCRIPT 20/4: Rey Franco, Deputy Chairman of FEDHASA Cape, has e-mailed this comment: “Thanks for this, I do need to correct you on one specific comment you have made by saying we have not done the survey. Rema and I are checking the rates daily, on Expedia, booking.com and others. It is important to note that we decided to do the survey over a minimum of 3 months before releasing any information in order to ascertain the actual status of the rates stituation. Something the media forgot to mention. I am sure you would agree that looking at rates for only a few days is certainly not going to show any worthy trend. To show you why this survey must be conducted over a longer period I have attached the rates as displayed this morning under the certain categories for your perusal. You will see how low they are. See what you can get from the Taj! It is also important to note that rates will vary dependant on demand especially where large conferences and events are concerned. Another reason why rates need to be averaged out correctly. I will do the same daily searches on the additional hotels you have tested to ensure a wider trend analysis.”

POSTSCRIPT 24/4:  We received the following e-mail from Dirk Elzinga, Chairman of FEDHASA Cape: thank you for your email/copy of your blog that was passed on to me while I am travelling overseas. It made some interesting reading, and I am sure that we are able to make good use of your suggestions. I trust that the response you received from Rey Franco is clear to you, and that you do understand that we as Fedhasa try to get some 
realy (sic) reliable information about the relative pricing of our hotels in Cape Town. A once off snap shot comparison obviously does not serve this purpose. We definitely will inform our members and the media about our findings of this ongoing survey as soon as we feel that we have collected sufficient data to express an opinion based on facts. As Rey wrote, this will at least take three months or so.”

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com  Twitter:@WhaleCottage

England fans Sweet & African Eagle Sour Service Awards

The Sweet Service Award goes to the England supporters, who so bravely and in a sportsman-like manner accepted the outcome of their Round of 16 match against Germany just less than 2 weeks ago.   Despite the loss, they partied and no reports of hooliganism were received, something which has been associated with English soccer fans in the past.

                       

The Sour Service Award goes to Enver of African Eagle, for the poor service a group of Whale Cottage World Cup guests, who had booked the company to do a day-tour to Aquilla, received.   The company’s guide called the Whale Cottage Camps Bay Manager Marianna at 5h45 to obtain directions!   They called again, to say they could not find the house, and were given the correct address again.   It took a further 30 minutes for them to reach the guest house.   An hour later the guests returned, saying that they had asked to be returned to Whale Cottage Camps Bay, as the driver was still looking for other clients at 8h00, when they should have reached Aquilla already and had breakfast there!   It took Enver 24 hours to return Marianna’s call of complaint, due to a message that had not been passed on to him by his staff.  When he took ownership of the problem, Enver immediately apologised and explained that he had used a new Portuguese-speaking guide, who had been requested by other booked clients, but who did not know Cape Town well.   Enver promised to drop off bottles of wine for the Whale Cottage guests and chocolates for Marianna, to apologise for the poor service.   The guests have long since checked out and the promised wine and chocolates have not been received! 

The WhaleTales Sweet & Sour Service Awards are presented every Friday on the WhaleTales blog.  Nominations for the Sweet and Sour Service Awards can be sent to Chris von Ulmenstein at info@whalecottage.com.   Past winners of the Sweet and Sour Service Awards can be read on the Friday posts of this blog, and in the WhaleTales newsletters on the www.whalecottage.com website.