marketing south africa in new markets

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Marketing SA in new Markets Mashoto Zimba([email protected])

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Mashoto Zimba from SAT gave this insightful presentation to the JAMMS members in October 2012.

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Page 1: Marketing South Africa in new markets

Marketing SA in new Markets

Mashoto Zimba([email protected])

Page 2: Marketing South Africa in new markets

Slide no. 2 © South African Tourism 2012

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 3: Marketing South Africa in new markets

Slide no. 3 © South African Tourism 2012

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 4: Marketing South Africa in new markets

Slide no. 4 © South African Tourism 2012

Mandate and Key Strategic Objectives is the Vision for Tourism

Sustainable GDP

Growth

Sustainable job

creation

Redistribution and

transformation

The mandate

to SA Tourism

is ...

. . . through

six key

objectives . . .

. . . by acting

in a focused

way to . . .

Understand the

market

Choose the attractive

segments

Market the

Destination

Facilitate the

removal of obstacles

Monitor and learn

from tourist

experience

Facilitate the

product platform

Increase in tourist

volume

Increase in tourist

spend

Increase length of

stay

Improve geographic

spread

Improve seasonality

patterns

Promote

transformation

Mandate and Key Strategic Objectives

Page 5: Marketing South Africa in new markets

Slide no. 5 © South African Tourism 2012

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 6: Marketing South Africa in new markets

Slide no. 6 © South African Tourism 2012

Where we play

AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE

CORE MARKETS Angola

Botswana

DRC

Kenya

Nigeria

South Africa

(Domestic)

USA

UK

Australia

India

France

Germany

Netherlands

INVESTMENT

MARKETS

Mozambique

Brazil

Canada

China (including Hong Kong)

Japan

Belgium

Italy

Sweden

TACTICAL

MARKETS

Lesotho

Swaziland

Ireland New Zealand

WATCH-LIST

MARKETS

Malawi

Namibia

Zambia

Zimbabwe

Argentina

Republic of Korea Austria

Denmark

Portugal

Switzerland

Spain

STRATEGIC

IMPORTANCE

Bahrain, Oman, Qatar,

Saudi Arabia

STRATEGIC

LINKS/HUBS

Egypt, Ethiopia,

Senegal, UAE, Israel,

Turkey, Ghana,

Tanzania, Uganda

Mauritius

Malaysia

Singapore

Greece

Countr

y M

anager

Regio

nal D

irecto

r Sta

kehold

er

Manager

Responsibility

Page 7: Marketing South Africa in new markets

Slide no. 7 © South African Tourism 2012

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 8: Marketing South Africa in new markets

Slide no. 8 © South African Tourism 2012

AFRICA

3,229,954 arrivals

8.3% up from 2011

Central & South America

58,156 arrivals

54.4% up from 2011

North America

187,703 arrivals

16.6% up from 2011

Europe

640,231 arrivals

9.6% up from 2011

Asia

186,981 arrivals

40.7% up from 2011

Australasia

63,475 arrivals

14.6% up from 2011

Middle East

26,931 arrivals

19.8% up from 2011

Indian Ocean Islands

9,990 arrivals

9.3% up from 2011

Note : Tourist Arrivals figures shown above for Jan - June 2012

Source: Table A Tourist Arrivals Jan - June 2012

4,416,373 arrivals

10.5% up from 2011

GRAND TOTAL

Tourist arrivals to South Africa for January to June 2012 grew by 10.5% over 2011 to reach 4,416,373.

All regions showed positive growth , Central & South America showed highest growth and recorded 54.4%.

January to June

Page 9: Marketing South Africa in new markets

Slide no. 9 © South African Tourism 2012

Air market showed positive growth of 16.0%, this was contributed by positive growth in most air

markets regions.

Touri

st A

rriv

als

Tourist arrivals to South Africa from Africa air markets, Jan - June 2012

Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where at least 60% of

arrivals to SA use road transport. Long-haul markets include all countries outside of Africa

Source: Table A Tourist Arrivals Jan - June 2012

Africa - Air Angola Dem Rep of Congo Kenya Nigeria Other Africa AIR

2011 165,246 18,057 15,926 14,008 27,886 89,369

2012 191,752 24,162 13,677 14,809 34,606 104,498

Difference 26,506 6,105 -2,249 801 6,720 15,129

% 16.0% 33.8% -14.1% 5.7% 24.1% 16.9%

0

50,000

100,000

150,000

200,000

250,000

Page 10: Marketing South Africa in new markets

Slide no. 10 © South African Tourism 2012

There was a 7.9% growth in tourist arrivals from land market, Zimbabwe was the biggest

contributor in this region with 21.2% growth, 157,884 more tourists than same period in 2011.

Tourist arrivals to South Africa from Africa land markets, Jan - June 2012

Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where at

least 60% of arrivals to SA use road transport. Long-haul markets include all countries outside of Africa

Source: Table A Tourist Arrivals Jan - June 2012

Africa - Land Botswana Lesotho Malawi Mozambique Namibia Swaziland Zambia Zimbabwe

2011 2,848,885 230,349 761,836 59,989 558,214 91,549 325,122 76,210 745,616

2012 3,075,123 197,620 809,182 67,634 551,914 92,753 373,085 79,435 903,500

Difference 226,238 -32,729 47,346 7,645 -6,300 1,204 47,963 3,225 157,884

% 7.9% -14.2% 6.2% 12.7% -1.1% 1.3% 14.8% 4.2% 21.2%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Touri

st A

rriv

als

Page 11: Marketing South Africa in new markets

Slide no. 11 © South African Tourism 2012

There has been incline in tourist arrivals from all markets in the Americas region resulting in an

overall incline of 23.8% compared to the same period in 2011.

Tourist arrivals to South Africa from the Americas, Jan - June 2012

Source: Table A Tourist Arrivals Jan - June 2012

Americas Brazil Canada USA Other

2011 198,584 22,087 27,134 133,781 15,582

2012 245,859 37,179 32,181 155,522 20,977

Difference 47,275 15,092 5,047 21,741 5,395

% Change 23.8% 68.3% 18.6% 16.3% 34.6%

0

50,000

100,000

150,000

200,000

250,000

300,000

Touri

st A

rriv

als

Page 12: Marketing South Africa in new markets

Slide no. 12 © South African Tourism 2012

Tourist arrivals to South Africa from Asia & Australasia, Jan - June 2012

Asia & Australasia saw 33.0% increase in tourist arrivals with growth in all major markets for

this region for this period compared to 2011.

Source: Table A Tourist Arrivals Jan - June 2012

Asia & Australasia AustraliaChina (including Hong

Kong)India Japan

Other Asia & Australasia

2011 188,308 47,132 35,796 43,979 10,771 50,630

2012 250,456 54,114 60,272 53,291 14,197 68,582

Difference 62,148 6,982 24,476 9,312 3,426 17,952

% Change 33.0% 14.8% 68.4% 21.2% 31.8% 35.5%

0

50,000

100,000

150,000

200,000

250,000

300,000

Touri

st A

rriv

als

Page 13: Marketing South Africa in new markets

Slide no. 13 © South African Tourism 2012

Tourist arrivals to South Africa from Europe, Jan - June 2012

There was 9.6% incline in tourist arrivals from Europe in this period with an increase in all

markets, Germany was the main contributor with 12,880 more tourists.

Source: Table A Tourist Arrivals Jan - June 2012

Europe Belgium France Germany Italy Netherlands Sweden UK Other Europe

2011 583,991 16,984 48,191 105,896 20,503 45,284 19,789 205,170 122,174

2012 640,231 18,549 54,802 118,776 23,834 48,524 19,820 215,524 140,402

Difference 56,240 1,565 6,611 12,880 3,331 3,240 31 10,354 18,228

% Change 9.6% 9.2% 13.7% 12.2% 16.2% 7.2% 0.2% 5.0% 14.9%

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Touri

st A

rriv

als

Page 14: Marketing South Africa in new markets

Slide no. 14 © South African Tourism 2012

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 15: Marketing South Africa in new markets

Slide no. 15 © South African Tourism 2010

Filters Explanation

Household income of

R$ 40,000 was the initial

threshold for Brazilians

travelling long-haul for leisure

Household Income > R$ 40,000

per annum

South Africa Tourism is

prioritising 9 cities within

Brazil

Note: 1São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Salvador, Recife, Fortaleza, Brasília or Curitiba

Source: Monitor and Grail Research and Analysis; IBGE Census, 2010; IBGE Population Estimate, 2011

Total Brazilian

Population

Can Afford Long

Haul Travel

Reside in the

Prioritised Cities

Are over 18

Years of Age

192.4 Mn

(100% of total)

43.2 Mn

(22.4% of total)

11.5 Mn

(6.0% of total)

8.6 Mn

(4.5% of total)

The segmentation frame represents 8.6 million Brazilian, all over the age of 18, living

in one of the 9 prioritised cities, with a household income greater than R$ 40,000

Household income > R$ 40,000

Live in prioritised1 cities

Household Income > R$ 40,000

Live in prioritised1 cities

Adults (older than 18 years)

Adults are the key participants

in the travel buying process

Based on the screening criteria, the segmentation frame represents 8.6 Mn Brazilians or 4.5% of the population

Total Market Size

Page 16: Marketing South Africa in new markets

Slide no. 16 © South African Tourism 2010

Summary of Segments (1/2)

Home-loving couples

Older couples without children and medium

income who don’t travel a lot and when

they do are more likely to VFR

Volume = 5.3% of total market

Value = R$ 11,200 per trip

Experienced travellers

People (single and married) from all ages

and incomes and without children who

travel frequently to explore new places and

are more likely to book their trips online

Volume = 8.4% of total market

Value = R$ 11,400 per trip

F B

Independent travellers

Single or divorced people without children,

earning medium income who have taken 2-3

trips in the last 2 years, the majority of

whom prefer to travel alone and meet new

people

Volume = 3.6% of total market

Value = R$ 12,300 per trip

Beginning to enjoy life

Over 40 year-old couples with no children or

independent children, from wealthy

households who, although they don’t travel

often, say price is not a concern. They

prefer less crowded and peaceful travel

experiences while exploring new cultures

Volume = 5.0% of total market

Value = R$ 17,700 per trip

G C

Young professionals

Single younger travellers without children,

from wealthy households, who are keen to

have fun, explore new places and are more

likely to use online sources

Volume = 11.9% of total market

Value = R$10,700 per trip

D

Building up their lives

Younger single people without children,

from medium income households, who

prefer to travel with friends and are more

likely to stay in B&Bs or 3-4 star hotels

when on holiday

Volume = 7.9% of total market

Value = R$ 12,200 per trip

A Mature Couples

Over 30, wealthy, married and single people

without children who are experienced

international travellers, who are looking for

cultural and natural experiences and are

eager to try new things

Volume = 13.6% of total market

Value = R$ 14,000 per trip

E

Page 17: Marketing South Africa in new markets

Slide no. 17 © South African Tourism 2010

Summary of Segments (2/2)

First time parents

Medium income, young couples with

children who are price sensitive but keen to

have fun and relax with family when

travelling

Volume = 2.8% of total market

Value = R$ 11,600 spent per trip

Local family travellers

Middle-aged and wealthy couples with

children who are family-oriented and

consider travel important for their lives.

They enjoy relaxing holidays and are

travelling closer to home

Volume = 7.5% of total market

Value = R$ 12,700 spent per trip

L H

Focused on other priorities

Young wealthy couples with children who

don’t think travel is a priority: they prefer

to save money, build up their home and

they spend less on travelling than they do

on other forms of entertainment

Volume = 4.7% of total market

Value = R$ 10,000 spent per trip

I

Sophisticated families

Over 30, wealthy and highly educated

couples with children who travel frequently

with their partner. They consider travel a

necessity and are spending more on travel

and travelling further abroad

Volume = 11.2% of total market

Value = R$ 13,100 spent per trip

N

Traditional Brazilian families

Older couples with children from medium

income households, who want to spend time

with family when on holiday and prefer to

travel during their children’s holidays

Volume =75.3% of total market

Value = R$ 14,000 spent per trip

J

Family explorers

Couples with children from all ages and

incomes who travel a lot, to destinations

which provide natural wildlife, relaxation,

cultural and family-friendly experiences

during a more cost-effective time of year

Volume = 4.3% of total market

Value = R$ 9,000 spent per trip

K

M Conservatives families

Older, wealthier couples with children who

consider many options before travelling on

holiday or to VFR. They are less likely to

gather information online but expect to

travel internationally more in the future

Volume = 6.7% of total market

Value = R$ 13,100 spent per trip

Page 18: Marketing South Africa in new markets

Slide no. 18 © South African Tourism 2010

Prioritised Segments

Young Professionals Mature Couples Experienced Travellers Sophisticated Families

Young, single

professionals who are

well educated and earn

well for their age

They travel to have fun

and create memories

with their friends

They live with their

parents, work hard and

have an active social life

in Sao Paulo

They use online sources

for information and use

both online and agents to

book their trips

They are middle-aged

married business men

and women who don’t

have children

They work hard in the

week and relax on

weekends seeking

balance in their lives

They travel to relax and

escape, taking walks in

beautiful places &

enjoying culture and

shopping

They use online sources

for information and use

both online and agents to

book their trips

They are specialists

without children who

have been to college and

travel extensively

They are passionate

about travel looking for

new, different and

authentic experiences

Lifestyle is important to

them and they enjoy

interacting with other

people

They use online sources

for information and use

both online and agents

to book their trips

Demographics

Travel Mindset

Lifestyle

Buying Process

Business people in upper

management with a

family who are earning

very well

Balancing their career

and family lives is

important to them

They travel often to

spend time together,

enjoying a mix of

activities

They use online sources

for information and use

both online and agents

to book their trips

Page 19: Marketing South Africa in new markets

Slide no. 19 © South African Tourism 2010

Product Structure

Therefore, in order to offer a more attractive package to Brazilians SAT should provide a cost-effective base

package which addresses the general travel requirements and a menu of options for customisation by segment

D E F N

Length of Stay

– All priority segments travel for two weeks at a destinations on

average

Spend per trip

– Priority segments usually spend between R$ 10,000 and

R$ 15,000 per trip

Accommodation

– Options should be budget driven with sufficient options to

illustrate both the affordability and quality of options

– Within each budget level, offerings which would appeal to

each segment should be represented

Local Transport

– Transfers, car-hire and taxicab offerings should be available

– Where relevant, transportation should be linked to activities

Aspects covered by the Base Package

Base Package

Product Structure

Page 20: Marketing South Africa in new markets

Slide no. 20 © South African Tourism 2010

Young Professionals Activities

There are a wide-range of activities which would interest Young Professionals from Shopping at the Rosebank

market and visiting a Soweto shebeen to partying on Long Street or zip-lining in Hazyview

Source: Monitor and Grail Research and Analysis

Experience new places, cultures and people Fun adventures with friends

– Spending time in Sandton

and Soweto seeing how

different people live in South

Africa

– Going to a local shebeen and

drinking with local South

Africans

– Shopping at markets and

shops in Sandton City,

Rosebank Market and the

V&A Waterfront

– Attending a local football

match at Soccer-city

– Understanding an African

culture at the Lesedi Village

Young Professionals are still discovering the world.

They enjoy experiencing different ways of life while

having fun with their friends. For example, they’d

enjoy:

Spending time with friends

and creating fun memories is

important to them. They

would enjoy:

– Partying on Long-street in

Cape Town and Rosebank in

Johannesburg

– Zip-lining in Hazyview

with a group of four

friends

– Attending a South African

stand-up comedy or poetry

session in Braamfontein

– Bungee jumping at the

Bloukrans Bridge

– River-rafting down the

Sabie river with friends

– Learning to dive at

Sodwana in KZN

Page 21: Marketing South Africa in new markets

Slide no. 21 © South African Tourism 2010

Mature Couples Activities

Mature couples can relax and enjoy a comfortable experience by spending time walking in Durbanville Hills,

visiting Robben Island and enjoying sundowners in Camps Bay and some excitement shark-diving in Cape Town

Source: Monitor and Grail Research and Analysis

Experience new places, cultures and people Fun adventures together

– Relaxing at a comfortable

lodge in the Pilansberg

– Walking through Durbanville

wine farm in the Cape

– Visiting Robben Island to see

how prisoners lived

– Shopping in Sandton City for

fashion and luxury items

– Speaking with a Zulu warrior

at the Lesedi village

– Having a relaxing lunch in

Hout Bay

– Enjoying a sunset over

Johannesburg

Mature Couples need to relax when they travel and

enjoy spending time together doing activities which

change their views on the world. For example:

They are also quite

adventurous and

alternative and would

enjoy:

– Relaxing sundowners on

Camps Bay beach

– Ballooning over the

Magaliesberg

– Microlighting over the

Cape Peninsular

– Enjoying a concert over

lunch in Constantia

– Shark-cage diving to

add some excitement to

the trip

– Visit the penguin colony

at Boulder Beach

Page 22: Marketing South Africa in new markets

Slide no. 22 © South African Tourism 2010

Experienced Travellers Activities

There are many authentic activities which will appeal to Experienced Travellers such as the Maropeng World

Heritage site, township experiences in Alexandra and tracking animals on foot in the Kruger National Park

Source: Monitor and Grail Research and Analysis

Experience new places, cultures and people Fun adventures

– Visiting Maropeng in the

Cradle of Humankind, one

of the Worlds heritage sites

– Take a self-drive trip through

the Kruger National Park

– Authentic township

experience in Alexandra

– Make use of local

transportation including

Gautrain and Minibus Taxi’s

– Visiting District 6 to

understand the effect of

apartheid

– Visiting Hermanus to see the

whales

Experienced travellers look for new and different

experiences but also like to get the local perspective

to make sure it is authentic, such as:

More adventurous

experiences can make their

trip more impactful:

– Tracking animals on

foot in the Kruger Park

– Visiting the Cango Caves

for a different

experience

– Hiking in the

Drakensberg to see the

Lesotho border

– Wine-tasting at Klein

Constantia

– Road-trip from Cape

Town to Port Elizabeth

– Enjoy traditional

Babooti at a Cape Malay

restaurant

Page 23: Marketing South Africa in new markets

Slide no. 23 © South African Tourism 2010

Sophisticated Families Activities

There are many family orientated activities which Sophisticated Families will enjoy such as interacting with

lion cubs at the lion park, visiting Sun City, riding ponies in the bush and watching dolphin shows at Ushaka

Source: Monitor and Grail Research and Analysis

Experience new places, cultures and people Fun adventures with the family

– Spend time on the beach with

their children in Ballito

– Interact with Lion cubs at the

Lion park near Johannesburg

– Visit Sun-City to enjoy activities

for the whole family

– Enjoy activities at resorts for

children giving parents a break

– Do family safari’s where rangers

show children interesting

wildlife

– Go to the zoo and see animals

close up

As sophisticated parents, this segment want to show

their children the world and create opportunities to

make memories together. In SA they can:

Fun activities are create

for Sophisticated Families as

everyone can relax and

enjoy the time together.

Some examples are:

– Walking through the

Cape Town aquarium

– Visiting the Spier wine

estate with children

activities

– Pony-riding through the

bush

– Riding rollercoaster's at

Gold Reef City

– Watching shows at

Monte Casino

– Watching a Dolphin show

at Ushaka Marine World

Page 24: Marketing South Africa in new markets

Slide no. 24 © South African Tourism 2010

Source: Monitor and Grail Analysis

Channels: Travel Agents

Besides the growth of online bookings through supplier websites, travel agents (including both personal visits

and online interactions) are still the main channel for Brazilians

2012E

24

77%

8%

15%

2011E

22

79%

6%

14%

2010

20

83%

5%

12%

2009

16

86%

3% 11%

Brazil Travel Market Bookings (in USD Bn)2,

2008–2012E

Traditional Bookings

OnlineTravel Agents

Supplier Website

TOP TOUR OPERATORS & TRAVEL AGENCIES

TOP TRAVEL WEBSITES

Page 25: Marketing South Africa in new markets

Slide no. 25 © South African Tourism 2010

Source: Monitor and Grail Analysis

Channels: Internet

Although Brazil ranked 5th for the number of people who can access the Internet, with 37% of the population

using the internet. Facebook is the most accessed website.

B1 A1 A2

89%

C2

27%

76%

16%

41%

C1

83%

B2

7%

59%

E D

20-29 10-14 15-19

58%

50-64

23%

62%

9%

34%

40-49

72%

30-39

44%

65+

Internet users by economic class

Internet users by age

Most Accessed General Websites

UOL

38%

Twitte

r

40%

Orkut

42%

You

Tube

59%

Google

79%

Facebook

79%

Page 26: Marketing South Africa in new markets

Slide no. 26 © South African Tourism 2010

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 27: Marketing South Africa in new markets

Slide no. 27 © South African Tourism 2010

Note: 1The prioritised cities are: Ahmedabad, Amritsar, Bagalore, Chandigarh, Chennai, Delhi, Hyderabad, Kolkata, Ludhiana, Mumbai, Pune, Surat, Vadodara

Source: Monitor and Grail Research and Analysis; IMF; Indian Census, 2011, 2001; Oanda.com; EIU; United Nations, Department of Economic and Social Affairs

‘The Great Indian Middle Class’, National Council of Applied Economic Research, 2004

Total Population

Population in

Prioritised1

Cities

Capable of Long

Haul Travel

Adults

1,206.9 mn

(100% of total)

7.2 mn

(0.6% of total)

3.6 mn

(0.3% of total)

2.3 mn

(0.2% of total)

The segmentation frame represents 2.3 million Indians, all over the age of 18, living in one of

the prioritised cities, with a household income greater than INR 1,600,000

The segmentation frame represents 2.3 million Indians; i.e., people aged 18 or above, residing in the thirteen

focus cities and with a household income greater than INR 1,600,000

Prioritisation of Consumer Segments

Total Size of the Frame

The greatest opportunity lies in the largest

cities, as well as those cities which display

strong socio-economic factors

Household income of INR 1,600,000 million

was found to be the threshold for Indians who

regularly participate in long-haul leisure

travel

Adults (aged 18 or above) are the key

participants in the travel buying process

Page 28: Marketing South Africa in new markets

Slide no. 28 © South African Tourism 2010

High Level Segment Overview

Younger, Traditional, Couples

Couples, with young children, the majority

of whom live in other metros and prefer to

stay with friends and family or in

guesthouses and B&Bs when on holiday

Volume = 5.3% of total market

Value = INR 0.87 mn per person p.a.

Younger, Exotic and Worldly, Couples

Couples, with young children, who mainly

live in super metros, travel fairly frequently

and typically seek a romantic holiday

Volume = 6.5% of total market

Value = INR 0.89 mn per person p.a.

Younger, Worldly, Very High Income Families

Couples, with dependent children, who

travel very frequently and stay in B&Bs and

guesthouses

Volume = 3.7% of total market

Value = INR 2.39 mn per person p.a.

Younger, Traditional, Singles and Couples

Singles and couples with no children who

travel fairly regularly and look to have

romantic holidays when they travel

Volume = 13.8% of total market

Value = INR 0.48 mn per person p.a.

Middle-Aged, Traditional, Couples

Couples, with grownup children that have

left home, who typically travel to visit

friends and family

Volume = 6.4% of total market

Value = INR 0.53 mn per person p.a.

Older, Traditional and Exotic, High-Very

High Income Couples

Couples with no children who predominantly

live in super metros and travel fairly

frequently

Volume = 5.0% of total market

Value = INR 0.85 mn per person p.a.

B

C

Younger, Worldly, Singles and Couples

Singles and couples with no children, who

travel very frequently and seek adventure

or romantic holidays

Volume = 8.0% of total market

Value = INR 1.27 mn per person p.a.

F

Younger to Middle-Aged, Exotic and Worldly

Couples

Couples with no children who travel

infrequently but enjoy exploring new

cultures and destinations while on holiday

Volume = 5.5% of total market

Value = INR 0.53 mn per person p.a.

E A

H D

G

Page 29: Marketing South Africa in new markets

Slide no. 29 © South African Tourism 2010

High Level Segment Overview

Older, Exotic and Worldly, High Income

Families

Couples, with dependent children, who

travel frequently, usually going on family

holidays

Volume = 3.4% of total market

Value = INR 0.45 mn per person p.a.

Middle-Aged to Older, Traditional and Exotic,

Very High Income Couples

Couples, with dependent children, who

predominantly reside in super metros and

travel infrequently

Volume = 6.8% of total market

Value = INR 0.48 mn per person p.a.

Older, Traditional, High Income Couples

Couples, with dependent children, who

mainly stay in other metros and travel

infrequently, visiting friends and family

during holidays

Volume = 3.4% of total market

Value = INR 0.62 mn per person p.a.

Middle-Aged to Older, Traditional, Very High

Income

Couples, with dependent children, who

travel fairly frequently and tend to visit

friends and family during holidays

Volume = 7.2% of total market

Value = INR 0.55 mn per person p.a.

Middle-Aged, Worldly, Very High Income

Couples

Couples, some with children, who travel very

frequently and stay in five star hotels fairly

regularly

Volume = 11.3% of total market

Value = INR 2.02 mn per person p.a.

Middle-Aged, Traditional and Exotic, High

Income Couples

Couples, with dependent children, the

majority of whom reside in other metros and

travel infrequently

Volume = 8.3% of total market

Value = INR 0.36 mn per person p.a.

Middle-Aged, Worldly, High Income Couples

Couples, with dependent children, who live

mainly in super and other metros, travel very

frequently

Volume = 5.2% of total market

Value = INR 1.04 mn per person p.a.

I

L

J

K

M

N

O

Page 30: Marketing South Africa in new markets

Slide no. 30 © South African Tourism 2010

Prioritised Segments

Segment C: Young Family

Adventurers Segment F: Social Explorers

Segment I: Seasoned Status

Seekers

Key

Chara

cte

rist

ics

Seasoned Status Seekers are

experienced travellers and thus

look to derive the most out of their

trips to new destinations. They

prefer having a full itinerary

consisting of a wide range of

activities that allow them to

explore new places while still

enjoying some family time away

from their usual busy lives.

Tra

vel

Behavio

ur

Social Explorers enjoy the thrill of

seeing new places and meeting new

people. This segment is comprised of a

diverse range of travellers — at one end

of the spectrum are couples looking to

go on a romantic holiday, at the other

end are singles travelling with friends

looking to have fun, enjoy the nightlife

and take part in adventure sports. The

common theme across this segment is

that everyone is looking for fun,

freedom and a relaxing time.

Seasoned Status Seekers are

predominantly middle-aged couples

with kids, residing in the super

metros; they have very high

incomes, are well-educated and

occupy mostly senior management

positions in the workplace

Social Explorers are young singles and

couples without kids who have high to

very high annual household incomes;

they are very well-educated and tend to

work as specialists or professionals

Young Family Adventurers are

young, very high income, married

couples with kids, who typically

reside in the larger metros; they

are well-educated and occupy

senior positions in the workplace

With the increased responsibility

of a young family, Young Family

Adventurers are interested in

broadening their horizons and

exploring new cultures and

traditions, whilst having fun and

spending some quality time with

their family. Finally, travelling

relaxes and rejuvenates them,

providing new impetus when they

return to work.

Page 31: Marketing South Africa in new markets

Slide no. 31 © South African Tourism 2010

Young Family Adventurers Social Explorers Seasoned Status Seekers

Centre of Gravity

Products and Activities

Source: Monitor and Grail Analysis

These travellers are looking for partial packages with a trip length of between seven and twelve days, a spend of ~INR

175,000 per person and three to five star hotels. Safety and cuisine are priorities for the family segments

Pro

ducts

A

cti

vit

ies

Enjoy having a full itinerary

filled with a wide variety of

activities suitable for the

whole family

Key activities include:

– Natural attractions including

wildlife

– Cultural attractions

– Theme parks

– Adventure activities

Look to stay for ten to twelve

days

Spend of ~INR 200,000

(~USD 4,000) per person

Seek well-located, four to five

star hotels

Prefer partial packages including

tour guides

Concerns over safety and security,

and availability of Indian and

vegetarian food

Typically travel to Cape Town,

Johannesburg and Durban

Look for fun, thrilling activities

that give the sense of being free

and unrestricted

Key activities include:

– Visiting major attractions

– Adventure activities

– Nightlife

– Relaxing

– Shopping

Look to stay for seven to ten days

Spend of ~INR 175,000

(~USD 3,500) per person

Seek comfortable and clean three

to four star hotels

Prefer partial packages

Typically travel to Cape Town,

Johannesburg and Durban

Seek a wide variety of fun,

family-orientated activities

Key activities include:

– Visiting major attractions

– Natural attractions including

wildlife

– Relaxing

– Shopping

– Adventure activities

Look to stay for seven to ten days

Spend of ~INR 175,000

(~USD 3,500)

Seek three star hotels,

guesthouses and BnBs

Prefer partial packages with

special rates for young kids

Concerns over safety and security,

and availability of Indian and

vegetarian food

Typically travel to Cape Town,

Durban, Sun City and Jo’burg

Page 32: Marketing South Africa in new markets

Slide no. 32 © South African Tourism 2010

Products and Activities

Note: 1 International Indian Film Awards

Source: Monitor and Grail Analysis

Partial packages would appeal to travellers from all segments as it leaves some time for travellers to explore

on their own or simply relax; trips to South Africa should comprise visits to the major cities and locations

Type of Package

Partial packages (flights, accommodation, airport

transfers and limited activities) are preferred as they

allow travellers the chance to explore a destination at

their own pace

– For example, a ten day package could consist of six

days of pre-arranged activities and four days for

travellers to explore by themselves or simply relax

Indian travellers would look to stay between seven and

twelve days in South Africa and spend between INR

150,000 and INR 225,000 (USD 3,000–4,500)

These consumers seek accommodation that is clean,

comfortable and well-located; there are, however,

subtle differences in what each segment looks for

– Seasoned Status Seekers prefer luxury while Social

Explorers and Young Family Adventurers seek a

decent standard of accommodation

Special rates for children would appeal to the family

segments and should be incorporated into packages for

these segments

– E.g., entry fees for visits to theme parks could

possibly be incorporated into packages for Young

Family Adventures or Seasoned Status Seekers

Destinations

Packages to South Africa should several of the major

cities and locations, ensuring that Indian travellers fully

appreciate the diverse range of activities and

experiences on offer

– Major cities such as Cape Town, Durban and

Johannesburg provide Indian travellers with the

chance to explore urban life in South Africa, visit

major tourist attractions, relax on beaches where

possible and engage in a wide variety of activities

– Kruger National Park offers Indian travellers the

opportunity to view South Africa’s amazing wildlife

and natural scenic beauty

– Sun City and the “Valley of the Waves” provides a

family experience and is regarded as a status symbol

due to its previous hosting of the IIFA1

– For example, a ten day trip to South Africa could

include four nights in Cape Town, two nights in

Durban, two nights at the Kruger National Park and

one night apiece at Sun City and in Johannesburg

Page 33: Marketing South Africa in new markets

Slide no. 33 © South African Tourism 2010

Products and Activities

Source: Monitor and Grail Analysis

Activities involving adventure, exploring and sightseeing are popular across all segment although some subtle differences exist

between segments; Indian and vegetarian food is a significant consideration for Indian travellers

Activities

Each of the priority segments seek holidays where they

can explore the destination and participate in a wide-

range of activities, where the activities offer

something different from what they can experience

back in India

Typical activities include exploring the natural scenic

beauty and culture, visiting the major tourist

attractions, nightlife, shopping and adventure

– In terms of nightlife, Social Explorers are looking to

visit popular bars and clubs whereas Seasoned

Status Seekers are looking to dine-out and explore

the local culture at night

– Each segment’s definition of adventure activities

differs slightly

Seasoned Status Seekers and Young Family

Adventurers look for “safe adventure”, e.g.,

snorkelling or water-skiing

Social Explorers seek out more thrilling

activities that provide them with the adrenaline

rush and feeling of escape

Both Seasoned Status Seekers and Young Family

Adventurers look for family-orientated activities that

appeal to both young children as well as adults (e.g.,

theme parks, water parks, shopping or shows)

Cuisine

Indian travellers have specific food requirements with

the availability of Indian or vegetarian cuisine at a

destination influencing their choice of destination

While some Indian travellers do like to explore the

local cuisine at a new destination, having the option to

have either Indian food or pure vegetarian food is

extremely important across all segments

– Most Indian travellers prefer to have Indian food

during their trip although they would be willing to

have local cuisines on some nights

SAT is currently producing a guide to the Top

100 Indian restaurants in South Africa

– Many Indian travellers are vegetarian. Although they

can bring along ready-to-mix packets, destinations

which cater for them are preferred

The vegetarian options need not necessarily be

Indian in style

SAT is currently producing a guide to the

vegetarian restaurants in South Africa’s major

cities. This guide should be made available on the

SAT website and shared with the major tour

operators to emphasise that South Africa does

cater for vegetarians

Page 34: Marketing South Africa in new markets

Slide no. 34 © South African Tourism 2010

Centre of Gravity

Primary Sources of Travel-Related Information

Although word of mouth is the most popular source for travel-related information for Social Explorers and

Young Family Adventurers, Seasoned Status Seekers rely on online media for most of their travel-related

information

Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012

Primary Sources of Travel-Related Information, 2012

Perc

enta

ge

7%

10%

15%

18%

9%

26%

18%

9% 9% 8%

5%

3%

21%

14%

10%

12%

5%

Social Networking

Websites

Travel Magazines

and Booklets

16%

Television Travel Booking

Website

Word of Mouth Travel Agents

/ Tour

Operators

Online Media

10%

8%

1%

21%

16%

10%

5%

8%

3%

8%

Average

Social Explorers

Young Family Adventurers

Seasoned Status Seekers

Page 35: Marketing South Africa in new markets

Slide no. 35 © South African Tourism 2010

Centre of Gravity

Topics on Which Information is Gathered

The information that each segment looks for regarding a destination can provide insights into the

characteristics of each segment; in this case we see Social Explorers are less interested in tourist attractions

than other segments

Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012

Topics on Which Information is Gathered, 2012

Perc

enta

ge

Major

Tourist

Attractions

70%

76%

64%

73%

64%

52% 52%

56% 54%

Weather

64%

53%

69%

Accommo-

dation

70%

61%

73% 71%

Local People

and Culture

41%

44%

48%

55%

Things /

Activities To

Do

44%

53% 52%

52%

Costs of Various

Activities

50%

40%

59%

55%

Transport

Facilities

Average

Young Family Adventurers

Social Explorers

Seasoned Status Seekers

Page 36: Marketing South Africa in new markets

Slide no. 36 © South African Tourism 2010

Centre of Gravity

Websites

Note: 1 Average shown is across all segments and is not limited to the prioritised segments only

Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012

Websites Consumed in Leisure Time, 2012

Perc

enta

ge

47%

36%

42% 41%

Wikipedia

53%

36%

Youtube

61%

65%

70%

62%

Yahoo

70%

73%

70%

53%

71%

Facebook

82% 79%

89%

82%

Google

91%

82%

89% 86%

Redif

f

Orkut

43% 40%

47%

39% 42%

Google and Facebook are the two most popular websites across all segments

Seasoned Status Seekers

Social Explorers

Young Family Adventurers

Average1

Page 37: Marketing South Africa in new markets

Slide no. 37 © South African Tourism 2010

Centre of Gravity

Booking Channel

Although online channels are popular for booking both accommodation and airfare, consumers rely heavily on

personally visiting travel agents

Source: Monitor and Grail Analysis; ‘Quantitative Research Survey – India’, SAT, Jan 2012

Booking Channel Used to Book Accommodation, 2012

Percentage

18%

Personal

Visit -

Travel Agent 15% 6%

Travel

Website 6% 6%

7% 6%

Personal

Visit -

Airline/Hotel 9% 15%

11% 7%

Telephone -

Airline/Hotel 11%

19% 8%

10%

Telephone -

Travel Agent 14%

23% 14%

12% 17%

Online -

Travel Agent 17%

8% 21%

19%

Online -

Airline/Hotel 23%

18% 21%

20%

Average

Young Family Adventurers

Social Explorers

Seasoned Status Seekers

5% 8%

5% 7%

5% 8%

5% 7%

8% 2%

7% 8%

12% 13%

7% 10%

14% 10%

13% 14%

23% 21%

27% 24%

Online -

Airline/Hotel

Online -

Travel Agent

Personal

Visit -

Airline/Hotel

Travel

Website

Telephone -

Travel Agent

Telephone -

Airline/Hotel

Personal

Visit -

Travel Agent

25% 26%

31% 27%

Booking Channel Used to Book Airfare, 2012

Percentage

Page 38: Marketing South Africa in new markets

Slide no. 38 © South African Tourism 2010

Notes: 1Detailed profile of company in back-up

Source: Monitor and Grail Analysis; “Market Insights: India”, European Travel Commission, Mar 2010; India Outbound 2011- MICE travel, Today’s Traveller

Newswire, 2011;

Tour Operators and Travel Agents

“The three biggest outbound tour operators in India are Cox & Kings (which claims to be the oldest in the world – established in 1758), Thomas Cook and SOTC/Kuoni”

- Market Insights: India,

European Travel Commission,

Mar 2010

1

Major Online Travel Websites, 2010-2011

April 2011

April 2010

Month

ly u

niq

ue v

isit

ors

1

(million)

% Share of

Unique

Visitors2 20.9% 19.0% 11.6% 9.9% 3.9%

0.5

1.6

1.2

1.9

2.4

0.7

1.82.1

3.5

3.9

Yatra3 Make My Trip3 Holiday IQ Expedia3 Cleartrip3

Trade

Page 39: Marketing South Africa in new markets

Slide no. 39 © South African Tourism 2010

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 40: Marketing South Africa in new markets

Slide no. 40 © South African Tourism 2010

Possible Market

Note: 1 2010 figures; As per UNISA, 2~22 Mn people in SA earned less than ZAR 3,000-3,500 pm in 2010

Source: Monitor/ Grail Analysis; SAT Domestic Surveys

The target market represents 8.2Mn South Africans, all over the age of 18 and earning a personal

monthly income of R3,000 or more

The study looked at South African adults earning more than R3,000 per month. Leaving a possible market of

~8.2 Mn people to target

50 Mn1

(100% of total)

Total South African

population

8.2Mn2

(16.4% of total)

Adults earning more than

R3,000 per month (personal

income)

30.3 Mn

(60.6% of total)

Adult population over

the age of 18 years

A previous SAT study has shown that...

Page 41: Marketing South Africa in new markets

Slide no. 41 © South African Tourism 2010

High Level Segment Overview

Low Income Older Singles & Couples

Low-income Whites, Coloureds and Indians of

all ages, with no kids

Low Income Families

Low-income Whites, Coloureds and Indians of

all ages, with kids

Black Single-Parent Families

Low-income Blacks travelling for VFR,

including all ages and family situations

Up & Coming Young Black Singles

Middle-income, 25-35 year old Blacks,

Coloureds and Indians with or without kids

High-Life Enthusiasts

High-income Blacks, Coloureds and Indians,

aged 25-45, without kids and mostly single

Business Travellers

High-income Blacks, Coloureds and Indians,

aged 18-45, travelling for business

Well-to-Do Mzansi Families

High-income Blacks, Coloureds and Indians

with dependent kids, mostly middle-aged

Older High Income

Older, high income people of all races. Most

are married and about half have dependent

kids

Low Income Black Singles

Low-income Blacks travelling for holiday and

special/ religious/ business events, including

all ages and family situations

New Horizon Families

Middle-income Blacks, Coloureds and Indians

over 35 years old . Most are married with kids

Older Middle Income Whites

Middle-income Whites of all family situations,

all over 46 years old

Established Holiday Families

White, middle and high-income, 18-45 year

old people with children

Seasoned Leisure Seekers

White, middle and high-income, 25-45 year

old people without children

Spontaneous Budget Explorers

Middle- to high-income 18-24 years olds of all

races and all family situations

Page 42: Marketing South Africa in new markets

Slide no. 42 © South African Tourism 2010

Focus Segments

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Spontaneous Budget

Explorers

18-24

All races

R5,001+

Travel is a way to

discover new

people, places and

adventures.

Consumers in this

segment travel to

get away from the

monotony of daily

life; to add to their

life experiences and

fond memories

Avg. length of

stay: 5.4 nights

Trips/ year: 3

Avg. spend:

R1,252.00

New Horizon

Families

35+

Black, Coloured

and Indian

R5,001- R10,000

Travel is a way to

educate their

children, and to

provide them with

the opportunity to

broaden their

perspectives. It is

also seen as quality

time for the family

to spend together,

and a reward for

hard work

Avg. length of

stay: 5.2 nights

Trips/ year: 3.1

Avg. spend:

R1,160.50

High-Life

Enthusiasts

25-45

Black, Coloured

and Indian

R10,001+

Travel is a way to

boost one’s social

status, and to

experience the finer

things in life in new

and different

settings

Avg. length of

stay: 4.5 nights

Trips/ year: 3.1

Avg. spend:

R1,265.54

Seasoned Leisure

Seekers

25-45

White

R5,001+

Travel is a way of

life and something

of a necessity.

Having grown up

going on regular

holidays, this group

of consumers

understands the

value of travel

experiences and

memories over

commodities

Avg. length of

stay: 7.7 nights

Trips/ year: 4.4

Avg. spend:

R1,853.40

Well-to-Do Mzansi

Families

18-45

Black, Coloured

and Indian

R10,001+

Travel is all about

escaping the city,

and being able to

spend time with

friends and family in

new and different

locations. To a

certain extent,

travel is also about

exposing the children

to alternative ways

of life and activities

Avg. length of

stay: 5.6 nights

Trips/year: 3.2

Avg. spend:

R1,687.80

Page 43: Marketing South Africa in new markets

Slide no. 43 © South African Tourism 2010

Spontaneous Budget Explorers

Products: What the Spontaneous Budget Explorers Look For

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK

FOR?

Spontaneous Budget Explorers are looking to stay at

2- to 3-star BnB or self-catering accommodation

Typically, they drive to the destination

– For further destinations, they may take a bus or

fly on a low-cost carrier

They will typically pay ~R1,500 for a weekend trip

They take ~3 weekend trips during the year,

especially over long weekends

They are likely to take a week-long trip in

December, either with:

– Family, in which case they are not paying for, or

planning, the trip

– A significant other or friends

WHAT IS THE DESIRED OUTCOME OF PRODUCT

DEVELOPMENT FOR THIS SEGMENT?

Products aimed at this segment should:

– Be affordable

– Be activity-filled without being too prescriptive

about when the activities must be done

– Take into account that the journey must be as

enjoyable as the destination

– Allow them to have a space in which to socialise

with their friends (e.g., a communal outdoor

area)

– Take into account their propensity for spontaneity

and adventure

79 % of Spontaneous Budget Explorers prefer a weekend

holiday filled with activities compared to a quiet weekend

getaway

Spontaneous Budget Explorers are looking for trips that will allow them to take part in lots of activities in

new surroundings with their friends; these packages must, however, not be too prescriptive

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Page 44: Marketing South Africa in new markets

Slide no. 44 © South African Tourism 2010

ROAD TRIP-DRIVEN PACKAGES

ACTIVITY- DRIVEN DAY TRIPS

Spontaneous Budget Explorers

Products: Some Illustrative Examples

Ideal packages for Spontaneous Budget Explorers should sell fun with friends. Examples of these packages

include driving trip promotions, road trip packages and even activity-driven day trips

Source: Monitor/ Grail Analysis

Spontaneous Budget Explorers are keen to try

new things and experience different

environments, but may not be able to afford

overnight trips

Encouraging day-trips can drive the culture

of spend on tourism activities

Packages could include activities and a meal

at a discounted rate

– e.g. Bungee jump from the Soweto towers

and have lunch at a restaurant in Orlando

DRIVING TRIP PROMOTIONS

Many Spontaneous Budget Explorers use their

cars for local getaways

– Promotions related to savings that can be

made on the road are one way to encourage

consumers to travel more

These promotions could include:

– A frequent traveller card that allows for

discounts on the toll roads in low season

months

– Loyalty cards at garages, e.g. Fill up at only

Engen filling stations and earn points to get a

free 6-pack of Coke

A tour of South Africa on a bus for 2 weeks with

other young South Africans provides

Spontaneous Budget Explorers with the

opportunity to visit multiple destinations

without too much organisational hassle, while

enabling them to pay most of the costs

upfront

– e.g. A road tour of the coastal regions

starting in Durban and ending in Cape Town

– e.g. Overland safari covering the provinces

in the interior

55% of Spontaneous Budget Explorers said that

special offers on flights would make them travel

more, while 41% felt that affordable and customised

package deals would encourage them to travel

Save on road

trips within

South Africa

Page 45: Marketing South Africa in new markets

Slide no. 45 © South African Tourism 2010

New Horizon Families

Products: What the New Horizon Families Look For

New Horizon Families want affordable and accessible holidays for their families. Information on culture,

heritage and nature in an area are a critical part of products aimed at this segment

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK

FOR?

New Horizon Families are looking to stay at 3-star

BnB or self-catering accommodation

They will drive or take a bus to their destination

They will typically pay ~R10,000 for a 10-day trip

with 2 adults and 2 children

They may take weekend-long family trips during the

year in self-catering accommodation or at camp sites

This segment saves up for a big family holiday during

the December school break

– This big trip is typically taken every 2nd or 3rd year

WHAT IS THE DESIRED OUTCOME OF PRODUCT

DEVELOPMENT FOR THIS SEGMENT?

Products aimed at this segment should:

– Be affordable

– Be accessible by road

– Be child-friendly, both in terms of facilities and

activities

– Offer access to cultural/ nature/ heritage

activities

– Include information; information centres and/or

tour guides are critical for this group, as they

want to learn new things while travelling

“A lack of information about a place deters me from

travelling to it. I want to go to Durban because I’ve heard of

uShaka Marine World but if there was no information on it, I

wouldn’t go there”

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Page 46: Marketing South Africa in new markets

Slide no. 46 © South African Tourism 2010

EDUCATIONAL TRIPS

New Horizon Families

Products: Some Illustrative Examples

Products that centre around learning new things and spending time with family would be ideal for New

Horizon Families: child-friendly holiday packages and educational trips

Source: Monitor/ Grail Analysis

CHILD-FRIENDLY HOLIDAY PACKAGES

Promotions that make it easier to travel with

children can increase the frequency of travel

among the New Horizon Families, who are

budget conscious

– “Children Stay Free” promotions at hotels

– Activities that would appeal to children but

still be enjoyed by the whole family, such as

visits to theme parks (e.g. Gold Reef City and

uShaka Marine World)

Encouraging day trips that have an educational

element can increase spend on tourism activities

– Either as part of a holiday or as a stand-alone

trip

Promotions could include activities and a meal,

with special rates for children

– e.g. A game drive at Addo Elephant National

Park and a meal with 50% off for children

46% of New Horizon Families said that special offers

on flights would make them travel more, while 45%

felt that special offers on hotels would encourage

them to travel

Components of a Package

Hotel accommodation

with special rates for

children

Day

trip to

a

theme

park

“I would like to take a day tour to Addo to see

the animals. People from overseas visit there

while we do not know anything about it”

As a part of educational trips, heritage activities

are a great opportunity to target at this group

Package clusters of heritage activities in a

particular area/ along a particular route (e.g.

Constitution Hill, Apartheid Museum and Hector

Peterson Museum) as a platform to build a holiday

around

HERITAGE ACTIVITIES

Page 47: Marketing South Africa in new markets

Slide no. 47 © South African Tourism 2010

High-Life Enthusiasts

Products: What the High-Life Enthusiasts Look For

High-Life Enthusiasts want glamour and comfort from their holidays. They want to be seen enjoying places

South Africa has to offer

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK

FOR?

High-Life Enthusiasts are looking to stay at 4- to 5-

star accommodation

They drive to destinations close by and fly to further

destinations

– They are likely to hire a car if they fly somewhere,

but aren’t impressed having to drive a car that

is less luxurious than what they drive at home

They consider between R600 and R1,200per person

per night sharing as reasonable for a 4-star BnB

They take a couple of weekend breakaway trips

during the year

Longer trips are usually taken in December with

friends

– It is easier to co-ordinate leave when everyone

takes time off

WHAT IS THE DESIRED OUTCOME OF PRODUCT

DEVELOPMENT FOR THIS SEGMENT?

Products aimed at this segment should:

– Be perceived as value for money, but not cheap

– Be glamorous and/ or offer comfort: holidays

must be the best that South Africa has to offer

– Have the option for numerous activities, but

allow the consumer to choose to do activities as

and when they please

– Offer convenience: one price for everything is

attractive to this group, as it allows them to plan

their spending ahead of time and then not have

to worry about budgeting once they are at the

destination

78 % of High Life Enthusiasts prefer a weekend holiday

filled with activities compared to a quiet weekend

getaway

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Page 48: Marketing South Africa in new markets

Slide no. 48 © South African Tourism 2010

EVENT-DRIVEN PACKAGE

High-Life Enthusiasts

Products: Some Illustrative Examples

Packages that will encourage High-Life Enthusiasts to travel must have an element of glamour and exclusivity,

such as group house/ chalet rentals and event-driven packages

Source: Monitor/ Grail Analysis

GROUP HOUSE/ CHALET RENTAL

This offer should enable a group of High-Life

Enthusiasts to book some kind of holiday home

or large exclusive house (e.g., a farmhouse on a

wine estate or nature reserve or a beach house)

They can spend their time doing activities nearby

and returning to the house to braai and socialise

– Socialising and spending time with friends is

extremely important, something that High-

Life Enthusiasts don’t enjoy doing in a hotel

Glamorous events are likely to entice High-Life Enthusiasts to

travel

Event-driven packages could include aspects such as VIP

access and a “memory pack” with professional photographs

from the event

– It is not only important to High-Life Enthusiasts to be at

the best events South Africa has on offer, but also to be

seen at these events

Events to be considered must be high-profile, and well-

known (e.g. Franschoek Cap Classique and Champagne

Festival, Cape Town Jazz Festival, Durban July)

Farmhouse/ Chalet

Accommodation Various Activities

Page 49: Marketing South Africa in new markets

Slide no. 49 © South African Tourism 2010

Seasoned Leisure Seekers

Products: What the Seasoned Leisure Seekers Look For

Seasoned Leisure Seekers want products that may not necessarily be mainstream and popular, but allow them

a chance to explore the culture, food and wine, and sceneries of different places within South Africa

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK

FOR?

Seasoned Leisure Seekers are looking to stay at 3- to

5-star BnB or self-catering accommodation

They will drive to destinations close by, and fly to

further destinations

They feel that between R800 and R1,400 is a

reasonable price to pay per person per night sharing

for a 4-star BnB

They take 3 or 4 weekend breaks during the year

– If they have a holiday home, they may take more

frequent weekend breaks

10 days in December are usually spent with family at

a holiday home, or on an overseas break, but this

group generally travels throughout the year and are

not limited to peak periods

WHAT IS THE DESIRED OUTCOME OF PRODUCT

DEVELOPMENT FOR THIS SEGMENT?

Products aimed at this segment should:

– Be perceived as value for money

– Not necessarily be mainstream or traditionally

popular; this group enjoys special interest

activities and hobbies

– Incorporate something different and memorable,

such as beautiful scenery or local culture and

crafts

– Include information on local activities and

festivals, food and wine, and scenery

“I like festivals like the Robertson Wine Festival and

the Knysna Oyster Festival. Things like that promote

the place and give me a reason to go there”

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Page 50: Marketing South Africa in new markets

Slide no. 50 © South African Tourism 2010

FOODIE WEEKENDS

EVENT-DRIVEN PACKAGE

Seasoned Leisure Seekers

Products: Some Illustrative Examples

Packages ideal for Seasoned Leisure Seekers promote new experiences that may not be traditionally popular,

such as foodie weekends and special interest packages

Source: Monitor/ Grail Analysis

Low-key, niche events can be used to trigger

additional trips during the year

Packages should include some kind of

informational guide or added-value activity

that can be explored

– Providing this group with a guide book to

the favourite local spots will encourage

them to do (and spend) more whilst

travelling

SPECIAL INTEREST PACKAGES

Provide a predetermined accommodation and

flight package aimed at certain special interest

events

– E.g., A mountain bike race package could

include additional baggage allowance for

transporting the cycling equipment, on top of

flights, car hire and accommodation

These packages could be offered in low-season

and used to encourage travel to provinces that

have not traditionally been popular

Weekend packages

could be created to

showcase the local

food and wine

By providing “Foodie

Routes and Tips” with

accommodation and

transport, consumers

can explore on their

own

Components of a Package

Discover the

food and wine in

the area

through a DIY

route

4-star guest

house

accommodation

Return airfare

and car hire

Accommodation

at a 5-star BnB

Special interest

activities (e.g.,

golf, nature walk,

photography,

cycling)

Spa

treatment

at end of

trip

Explore the

Natural

Wonders of

Hermanus

Page 51: Marketing South Africa in new markets

Slide no. 51 © South African Tourism 2010

Well-to-Do Mzansi Families

Products: What the Well-to-Do Mzansi Families Look For

Well-to-Do Mzansi Families want products that are comfortable and hassle free, with a variety and abundance

of activities and entertainment

WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK

FOR?

Well-to-Do Mzansi Families are looking to stay at 4-

to 5-star accommodation

They drive or fly, depending on how close the

destination is

They feel that R1,000 to R1,700 per person per night

sharing is a reasonable rate for a 4-star BnB

They take numerous weekend breaks during the

year, depending on how much time they have

– Children are not always taken on breakaways, as

they feel comfortable leaving their children with

nannies or grandparents for a night or two

Longer trips are likely to be family trips to a holiday

home or overseas and can last for a week or two

WHAT IS THE DESIRED OUTCOME OF PRODUCT

DEVELOPMENT FOR THIS SEGMENT?

Products aimed at this segment should:

– Be perceived as value for money; although this

segment is wealthy, they do not like feeling as if

they have been over-charged

– Be hassle free; paying one price upfront for

everything is appealing to this group

– Be child-friendly in terms of facilities and

entertainment available

– Be comfortable and luxurious

– Offer activities, without being too prescriptive

“I don’t want to have to constantly pull out my credit card

once I’m there. If I can be given one price for everything and

that’s it, I’ll be really happy”

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Page 52: Marketing South Africa in new markets

Slide no. 52 © South African Tourism 2010

COUPLES’ WEEKEND PACKAGES

FAMILY SAFARIS

Well-to-Do Mzansi Families

Products: Some Illustrative Examples

Products for Well-to-Do Mzansi Families should have minimum hassle while offering a variety of activities to

choose from, such as all-inclusive premium packages and family safaris

Source: Monitor/ Grail Analysis

ALL-INCLUSIVE PREMIUM PACKAGES

Holiday packages where a range of leisure

activities are paid for upfront

The packages could be at resorts such as Sun City

or resort/ property developments, such as

Zimbali

The package should include as much as possible

at one price for convenience:

– There should be flexibility to choose when

to engage in activities

Aimed at groups of friends

Activities can be tailored separately to the

men and women in the group

– e.g. The ladies go to the spa and shopping

during the day, while the men play golf

and ride quad bikes. Everybody

reconnects for a braai in the evening

Allows the guys to connect and socialise

separately from the women without taking

separate holidays

53% of Well-to-Do Mzansi Families said that special

offers on flights as well as special offers on hotels

would encourage them to travel within South Africa

Components of a Package

Return Airfare

and car hire

5-star

accommodation

All activities

The bush offers both isolation and quality

family time for Well-to-Do Mzansi Families

Packages should include family activities as

well as opportunities for the grown-ups to

relax

– e.g. Family game drives in the morning,

then the children take part in fun

activities at a kiddies centre while the

parents go to the spa or play a round of

golf

Page 53: Marketing South Africa in new markets

Slide no. 53 © South African Tourism 2010

Barriers

When digging deeper into the barriers to travelling in South Africa, consumers are concerned about their

safety, feel that tourism offerings are overpriced, and that there is not enough information about these

offerings

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

“There are so many beautiful

places and great things to do

right in my backyard, but I don’t

know about them. There needs

to be better communication”

– Consumer Interview

Lack of Info About Tourist Attractions and

Offerings

18%

Overpriced Tourism

Activities

Safety and Security

36%

41%

35%

44%

31% 33% 35%

26% 27%

40% 44%

36%

20%

32%

Seasoned Holiday Seekers

High-Life Enthusiasts

Spontaneous Budget Explorers

New Horizon Families

Well-to-Do Mzansi Families

Barriers to Travelling in South Africa

All 5 most attractive segments named safety and security, high price of

tourism offerings, and a lack of tourism information as their top barriers

to travelling in South Africa

– The perception of safety and security in the country is not

necessarily one that the tourism industry has a direct influence

over

– Pricing can be improved and information made more readily

available to encourage tourism activities

Page 54: Marketing South Africa in new markets

Slide no. 54 © South African Tourism 2010

Drivers

However, special deals as well as affordable and customised packages encourage South Africans to travel

more; elements that must therefore be highlighted in the messaging

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

“Packages work because you give

a consumer one price. It’s easier

to digest and seems more

affordable”

– Expert Interview

Affordable and Customised Packaged Deals

34% 31% 32% 33%

41%

Special Offers on Flights

53% 47%

59%

45%

55%

Special Offers on Hotels

53% 51%

62%

46% 48%

Well-to-Do Mzansi Families

Seasoned Holiday Seekers

High-Life Enthusiasts

New Horizon Families

Spontaneous Budget Explorers

Drivers of Travel in South Africa

Pricing is the highest driver of travel for the 5 most attractive segments

– They sighted special offers on accommodation and flights, as well as

affordable and customised packages when asked what would most

likely encourage them to travel more domestically

The advantage of packaged deals over individual discounts is that the

consumer does not see the discount provided by each supplier, thus

avoiding the creation of expectations of low pricing from a particular

provider

Page 55: Marketing South Africa in new markets

Slide no. 55 © South African Tourism 2010

Communication Channels – Overview

Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011

Spontaneous Budget

Explorers

New Horizon

Families

High-Life

Enthusiasts

Seasoned Leisure

Seekers

Well-to-Do Mzansi

Families

Spontaneous budget

explorers can be

reached via ETV and

SABC3; their

favourite travel

related show is Top

Billing. Online, they

can be reached via

Google and

Facebook

New Horizon

Families can be

reached via ETV,

SABC 1 and SABC 3;

their favourite travel

show is Top Billing.

Google is an ideal

online channel for

them and they read

Drum magazine

High-Life Enthusiasts

watch numerous

travel channels such

as National

Geographic,

Discovery and the

Travel Channel.

Online, they can be

reached via Google

and the Sunday

Times is useful for

print communication

Seasoned Leisure

Seekers can be

reached via SABC 3

and ETV. They

watch Top Billing

and Top Travel, and

surf Google and

Facebook while

online

Well-to-Do Mzansi

Families can be

reached via SABC 1

and ETV. They

watch Top Billing.

They search on

Google while online,

and read the Sunday

Times and Drum

magazine

Word of mouth

main channel

Followed by

online, television

and print

Word of mouth

main channel

Followed by

online, television

and print

Word of mouth

main channel

Followed by

online, television

and print

Word of mouth

main channel

Followed by

online, television

and print

Word of mouth

main channel

Followed by

online, radio and

television

If we look at an overview of the media channels used by each of the target segments...

Page 56: Marketing South Africa in new markets

Slide no. 56 © South African Tourism 2010

Contents

• SA Tourism Mandate and Key Strategic Objectives

• SA Tourism Strategy

• How many tourists we get

• Packaging for Brazilian Tourists

• Packaging for Indian Tourists

• Packaging for Domestic Tourists

• Benefits of a good partnership

Page 57: Marketing South Africa in new markets

Benefits of a good partnership…

Have you registered on the SA Travel directory?

Are you loading deals on www.vayamzansi.co.za?

Do you have news worthy stories in your area?

Are you assisting with hosting trade / media?

Are you using product workshops to learn about insights on

the different markets?

Are you graded by the TGCSA?

Page 58: Marketing South Africa in new markets

THANK YOU

Mashoto Zimba

[email protected]

(011) 895 3175