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New market research identifies ethical violations in South African air travel
By Guy Mulvaney.
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A recent market research on the ethical practices of travel agents in South Africa conducted by a
London based research company- has revealed some quite disturbing trends.
There is strong evidence of ethical violations in the service delivery of providing the best
prices for domestic travel through the large numbers of travel agents. The study indicates
that SA travel agents are not acting in the best financial interests of their passengers, because they are offering some airlines preferential treatment on the majority of routes.
Quotations provided by agents on 3 of the 6 routes were highly unsatisfactory, with more
than 50 % of agents not offering the best prices. Only one route proved satisfactory. The remaining two routes were totally monopolised by the national carrier.
The objective of the research was to ascertain whether SA agents were offering the best prices to their customers. And the research found that the Port Elizabeth - Johannesburg route was the worst. The range of prices offered by agents on this route was at the top end of the scale. There was also a huge diversity of prices for the same flight on the same airline. 70 % of travel agents also failed to mention a low cost airline that operates on the same route.
The research follows the recent anti –competitive rulings in the South African airline industry. The national carrier, SAA, were recently fined ZAR 55 million rand for anti –competitive behaviour by the Competition Board. The offence/s were for price fixing and
abusing their dominant market position by offering incentives commissions to travel agents at the expense of other airlines. In serious
contravention of the Competition Act.
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Charges were also laid against- Lufthansa and Comair [partly owned by British Airways)
However, Comair have since applied for ‘immunity.’ Through the total dominance of SAA and a lack of competition, there are now a limited number of cheaper seats in South
Africa and as a result, customers simply don’t have the luxury of much choice.
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Expensive flights on expensive airlines can no longer be justified. Short -haul flying between European cities has moved towards egalitarianism -as a result of which BA abolished Club European Class for business travelers and a single class has since been introduced. Furthermore the national carrier has slashed ticket prices to European cities by 50%.
BA has also resisted the temptation to impose charges on hand luggage-unlike many other no-frills airlines. Tourists who are planning a trip to SA are advised to book well in advance-especially during peak season. So if you are a frequent flyer it is advisable to strike up a relationship with a trustworthy travel agent. It is always advisable to purchase
e-tickets directly through the airlines.
guymulvaney@aol.com
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