In the midst of a volatile Rand and GDP growth slowing down, one sector that stands to benefit from a relatively weaker Rand this festive season is tourism. According to Wiza Nyondo, Head of Tourism at FNB Business hotels, guesthouses lodges, camps, restaurants and tour operators can all expect a busy festive season.
South Africa has remained a popular luxury destination for many international travellers; especially as it offers a world class experience from shopping to pristine beaches and unforgettable safari’s at a fraction of the price.
The value of the Rand makes for a favourable exchange rate for foreign tourists travelling to South Africa. It means that tourists can spend more here than they would in their home countries.
He says that our main tourism feeder markets are Germany, the United Kingdom, the United States and our neighbouring countries – which have also experienced the 2016 financial pinch, see South Africa as an attractive and cost effective destination.
“More South Africans who would have otherwise travelled abroad, will most likely travel within the country due to the value of the Rand making it more expensive for them to travel overseas”.
Nyondo shares a few tips that businesses can consider to retain some spend from holiday makers this this festive season:
- Price competitively: To win from the weak Rand, you must make the price attractive to the tourist, do not increase your prices sighting the weak Rand and under the impression that you can squeeze a little more out of the tourist. The best thing to do in this instance is to sell block bookings at a slightly lower rate than singular bookings. Another great way of taking advantage of this season is to charge less for longer stays. It is the best way to ensure ‘bums on beds’ that have the potential to spend more on other offerings.
- Consider packaged and shared services: When people are on holiday, they are essentially looking to have fun, be relaxed, and not have to think and plan extensively. A great way to take advantage of this is to develop an ecosystem that is focused on partnerships where businesses from related sectors combine to create one package to sell to the end consumer at preferential pricing. An example is a tour operator, a restaurant owner, and a hotel owner – these parties can develop packaged holiday programs that will see all of them create revenue streams and most importantly continue driving business through added value services, while taking the stress of the holiday makers.
- Make it an experience: Remember that above all else, the reasons one travels are to see, feel, and experience something outside of their normal. Beyond the Rands and Cents, remember to treat your customers as gold and they are likely to be repeat visitors.
“Most of all, position your business competitively and keep in mind that price will play a big role this festive season. It is not just the Rand that has taken the knock in value; the whole world is feeling the pinch. The tourists that will visit our country are also likely travelling on a guarded budget, so make them want to spend their money on your business”, concludes Nyondo.
Alan Straton
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