This Tourism Week Number 20 Sunday, 26 January, 2003. Knysna.

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 This Tourism Week Number 20 Sunday, 26 January, 2003. Knysna.

ANOTHER TIPPING SURPRISE

You could have knocked me down with a feather. The response to last week’s This Tourism Week article – Tripping Over The Tipping Minefield – was impassioned to say the least. But what really shocked me was a doubly impassioned telephone call from a reader who told me about a worrying new trend: apparently, some accommodation establishments have begun adding a 10% service fee to their bills.

I didn’t want to believe it, but I checked it out, and yes, there are those who are doing it.

This is bad form, don’t you think?

I ran the idea past a lawyer or two, and they said that adding a service charge to the bill is not illegal but that it could be considered an ‘unfair’ business practice, because it means that you land up charging more than the advertised amount. For me, though, I’d consider it a really dumb business practice because it isn’t going to make your guests particularly happy, and it means that you’re incentivising your staff with other people’s money.

There’s a parallel here. According to Knysna Tourism’s membership document, you are not allowed to add booking agents’ commissions to your rack rates. In other words, if your rack rate is  R100.00 per person, you cannot charge R110.00 to guests who book through accommodation bureaux: you must deduct commissions from your rack rates (and if you don’t know what a rack rate is – it’s the rate Joe Public sees on a rates card collected from a rack of brochures).

I think we need to start being really vigilant about how we charge our guests – in every sector of the industry. South Africa is quickly losing the edge we had when the Rand was swanning it at 13 and more to the almighty dollar, and we cannot afford to think that we can ‘get them’ on price alone.

We have a wonderful range of the greatest products, a magnificent country (even if we have forgotten how to play rugby) and our weather is the best. Anywhere. And most of us are warm and welcoming to our visitors. We have all the ingredients to continue to reap the tourism reward. And with improved international marketing (and it rally has improved – and will continue to improve, no doubt), we’re riding high, right now.

But many things could derail this tourism gravy train of ours, and becoming known as a nation of rip-offs is just one of them (and I believe that adding anything onto any advertised price is a rip off). And many of these things are out of our control – but we can do something about rip-off pricing.

Question is, are we going to?

JOINT MARKETING STRATEGY FOR THE WESTERN CAPE – MIKE FABRICIUS REPLIES

Whilst I stand by my article on the Joint Marketing Initiative and the “Tourism Marketing Strategy And Institutional Proposals For The Western Cape – Cape Town And Regions – November 2002,” not everyone agrees with me. Here’s what Dr. Mike Fabricius, CEO of the Western Cape Tourism Board (mike@capetourism.org) had to say:

“You unfortunately have it wrong on a number of core issues, the major ones being:

“Nowhere in the document does it propose Cape Town – The Cape as a brand name! The document explicitly states that branding research is being completed and does not make any proposal for a brand name. In fact, the preliminary branding research and proposals support The Cape South Africa as a brand identity (please see the way it has been used in all our materials and communicated during our meeting with the local industry at the end of last year). Cape Town will be used as a branding “hook” to The Cape brand in international markets where the destination is not well known and where Cape Town is more recognised. In addition, The Cape brand allows for regional association, e.g. the Cape Garden Route, Cape West Coast, etc.

“Secondly, our membership proposals have been workshopped throughout the province and allows for a differentiated membership fee between developed and developing tourism areas, which means that Prince Albert members will pay half the fees of Knysna members or Cape Town members, not the same as you have stated.

“Thirdly, the document leaves the local marketing function at the discretion of local tourism associations and does not require any “up payment” by local tourism bodies, i.e. no financial contribution except for 10% of membership fees to administer databases and other membership services. District municipalities or their marketing agencies (RTO’s) and for that matter LTB’s will be able to select their participation in the DMO (Destination Marketing Organisation) from a menu of marketing projects.

“Finally, the whole thrust of the strategy (as clearly stated) is to combine the attractiveness of Cape Town and the many wonderful experiences of the hinterland, thereby appealing to so many more market segments. The document mentions a full range of attractions to be marketed and does not propose Cape Town alone as icon – where did you get that? This combination is our major strength and there is no way that the document proposes a focus on Cape Town only as suggested in you piece. The strategy will be of major benefit to both the hinterland and the city.”

Remember that the strategy document is available as a download off the Joint Marketing Initiative’s web site – http://www.jmi.co.za/, and that your comments must be submitted to Mike Fabricius (mike@capetourism.org) and to Dr. Laurine Platzky in the Provincial Administration (Lplatzky@pawc.wcape.gov.za) by 31 January 2003.

I have no idea who said it, but it’s my moto of the moment: “Islam is not the enemy and war is not the answer.” Sadly, though, George Bush doesn’t read This Tourism Week.

… Have a Great Tourism Week!

 

MARTIN HATCHUEL – BarefootWriter

 

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