marketing south africa in new markets
DESCRIPTION
Mashoto Zimba from SAT gave this insightful presentation to the JAMMS members in October 2012.TRANSCRIPT
Marketing SA in new Markets
Mashoto Zimba([email protected])
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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%
79%
79%
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
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
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
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
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.
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
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
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
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
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
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%
82% 79%
89%
82%
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
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
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
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
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...
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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...
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
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?