South African National Parks (SANParks) has revised the commission margins for the travel trade marketing accommodation and other activities in its various national parks. These new commission margins will come into effect on travel trade bookings made after 1 November 2019, when the new two year contracts will be entered into.
This according to SANParks, Managing Executive: Tourism Development and Marketing, Hapiloe Sello who said in order to stimulate the growth of new and smaller entrants into the industry, smaller operators have had favourable commission margins introduced for them.
The lower and average occupancy parks and commission margins for small businesses were increased while high occupancy camps saw the reduction of the commission margins (except for the small turnover category).
Sello further explained that the commission margins of the high occupancy camps have been reduced from between 5%, for small turnover operators, and 15%, for high turnover operators, to 5% and 10% respectively. While for average occupancy camps, the commission margins changed from between 10% and 30% to 15% and 25%, respectively and finally the low occupancy camps will see the commission margins changed from between 15% and 35% respectively, to 40% for all turnover categories.
“This process is an effort by SANParks to benefit all stakeholders, by implementing a strategy to grow occupancies in lower use camps and national parks, while ensuring small players play a part in the SANParks business.”
Turnover with SANParks (on accommodation and activities for 12 months ended 31 October 2019)
Low Occupancy
Average Occupancy
High Occupancy
Commission
Commission
Commission
Small (up to R1 000 000)
40%
15%
5%
Medium (from R1 000 001 to R3 000 000)
17,5%
7,5%
Large (from R3 000 001 upwards)
25%
10%
According to Sello the bulk (in excess of 80%) of its revenue is generated from its tourism plant “and as a State entity, therefore SANParks has an obligation to operate its tourism wing within best business practice principles. “The management of our commission regimen to the trade is an important element of SANParks business strategy.”
SANParks primary obligation is to ensure that its business model remains sustainable in years to come, especially in an environment of increased expenses and a relentless onslaught on its wildlife by criminals. “As an organization we value support from all operators, and it is our view that this revised approach will go a long way in benefitting all parties involved.”