Marketing SA in new MarketsMashoto Zimba(mashoto@southafrica.net)
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Mandate and Key Strategic Objectives is the Vision for Tourism                              Mandate and Key Strategic Obje...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Where we playResponsibility                                              AFRICA           AMERICAS & the UK      ASIA & AU...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Tourist arrivals to South Africa for January to June 2012 grew by 10.5% over 2011 to reach 4,416,373.    All regions showe...
Air market showed positive growth of 16.0%, this was contributed by positive growth in most air                   markets ...
There was a 7.9% growth in tourist arrivals from land market, Zimbabwe was the biggest               contributor in this r...
There has been incline in tourist arrivals from all markets in the Americas region resulting in an                   overa...
Asia & Australasia saw 33.0% increase in tourist arrivals with growth in all major markets for                 this region...
There was 9.6% incline in tourist arrivals from Europe in this period with an increase in all                 markets, Ger...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Total Market SizeBased on the screening criteria, the segmentation frame represents 8.6 Mn Brazilians or 4.5% of the popul...
Summary of Segments (1/2)A                                                                  E                   Building u...
Summary of Segments (2/2)H                                                                    L                   First ti...
Prioritised Segments                   Young Professionals            Mature Couples          Experienced Travellers      ...
Product StructureTherefore, in order to offer a more attractive package to Brazilians SAT should provide a cost-effective ...
Young Professionals ActivitiesThere are a wide-range of activities which would interest Young Professionals from Shopping ...
Mature Couples ActivitiesMature couples can relax and enjoy a comfortable experience by spending time walking in Durbanvil...
Experienced Travellers ActivitiesThere are many authentic activities which will appeal to Experienced Travellers such as t...
Sophisticated Families ActivitiesThere are many family orientated activities which Sophisticated Families will enjoy such ...
Channels: Travel AgentsBesides the growth of online bookings through supplier websites, travel agents (including both pers...
Channels: InternetAlthough Brazil ranked 5th for the number of people who can access the Internet, with 37% of the populat...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Prioritisation of Consumer Segments      Total Size of the FrameThe segmentation frame represents 2.3 million Indians; i.e...
High Level Segment OverviewA                                                                     E                   Young...
High Level Segment OverviewI                                                                     M                   Middl...
Prioritised Segments                      Segment I: Seasoned Status                                                      ...
Centre of Gravity          Products and ActivitiesThese travellers are looking for partial packages with a trip length of ...
Products and ActivitiesPartial packages would appeal to travellers from all segments as it leaves some time for travellers...
Products and Activities Activities involving adventure, exploring and sightseeing are popular across all segment although ...
Centre of Gravity      Primary Sources of Travel-Related Information Although word of mouth is the most popular source for...
Centre of Gravity      Topics on Which Information is Gathered The information that each segment looks for regarding a des...
Centre of Gravity      WebsitesGoogle and Facebook are the two most popular websites across all segments                  ...
Centre of Gravity     Booking ChannelAlthough online channels are popular for booking both accommodation and airfare, cons...
Trade                                                                         Tour Operators and Travel Agents            ...
Contents•        SA Tourism Mandate and Key Strategic Objectives•        SA Tourism Strategy•        How many tourists we ...
Possible MarketThe study looked at South African adults earning more than R3,000 per month. Leaving a possible market of~8...
High Level Segment Overview               Low Income Older Singles & Couples                 Business Travellers          ...
Focus SegmentsSpontaneous Budget          New Horizon              High-Life         Seasoned Leisure            Well-to-D...
Spontaneous Budget Explorers     Products: What the Spontaneous Budget Explorers Look ForSpontaneous Budget Explorers are ...
Spontaneous Budget Explorers       Products: Some Illustrative ExamplesIdeal packages for Spontaneous Budget Explorers sho...
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
Marketing South Africa in new markets
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Marketing South Africa in new markets

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

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Marketing South Africa in new markets

  1. 1. Marketing SA in new MarketsMashoto Zimba(mashoto@southafrica.net)
  2. 2. 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 partnershipSlide no. 2 © South African Tourism 2012
  3. 3. 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 partnershipSlide no. 3 © South African Tourism 2012
  4. 4. Mandate and Key Strategic Objectives is the Vision for Tourism Mandate and Key Strategic ObjectivesThe mandate Sustainable GDP Sustainable job Redistribution andto SA Tourism Growth creation transformation is ... Increase in tourist Increase in tourist Increase length of . . . through volume spend stay six keyobjectives . . . Improve geographic Improve seasonality Promote spread patterns transformation Understand the Choose the attractive Market the . . . by acting market segments Destination in a focused way to . . . Monitor and learn Facilitate the Facilitate the from tourist removal of obstacles product platform experienceSlide no. 4 © South African Tourism 2012
  5. 5. 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 partnershipSlide no. 5 © South African Tourism 2012
  6. 6. Where we playResponsibility AFRICA AMERICAS & the UK ASIA & AUSTRALASIA EUROPE CORE MARKETS Angola USA Australia France Botswana UK India Germany Country Manager DRC Netherlands Kenya NigeriaRegional Director South Africa (Domestic) INVESTMENT Mozambique Brazil China (including Hong Kong) Belgium MARKETS Canada Japan Italy Sweden TACTICAL Lesotho Ireland New Zealand MARKETS Swaziland WATCH-LIST Malawi Argentina Republic of Korea Austria MARKETS Namibia Denmark Zambia Portugal Zimbabwe Switzerland Stakeholder Spain Manager STRATEGIC Bahrain, Oman, Qatar, IMPORTANCE Saudi Arabia STRATEGIC Egypt, Ethiopia, Malaysia Greece LINKS/HUBS Senegal, UAE, Israel, Singapore Turkey, Ghana, Tanzania, Uganda Mauritius Slide no. 6 © South African Tourism 2012
  7. 7. 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 partnershipSlide no. 7 © South African Tourism 2012
  8. 8. 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 Europe  640,231 arrivals North America  9.6% up from 2011  187,703 arrivals  16.6% up from 2011 Middle East  26,931 arrivals  19.8% up from 2011 Asia  186,981 arrivals  40.7% up from 2011 Central & South America  58,156 arrivals Australasia  54.4% up from 2011  63,475 arrivals  14.6% up from 2011 AFRICA  3,229,954 arrivals Indian Ocean Islands GRAND TOTAL  8.3% up from 2011  9,990 arrivals 4,416,373 arrivals  9.3% up from 2011 10.5% no. 8 from 2011 Slide up © South African Tourism 2012Note : Tourist Arrivals figures shown above for Jan - June 2012Source: Table A Tourist Arrivals Jan - June 2012
  9. 9. Air market showed positive growth of 16.0%, this was contributed by positive growth in most air markets regions. Tourist arrivals to South Africa from Africa air markets, Jan - June 2012 250,000 200,000 150,000 Tourist Arrivals 100,000 50,000 0 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%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% ofarrivals Slide no. 9 road transport. Long-haul markets include all countries outside of Africa to SA use © South African Tourism 2012Source: Table A Tourist Arrivals Jan - June 2012
  10. 10. 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 3,500,000 3,000,000 2,500,000 2,000,000 Tourist Arrivals 1,500,000 1,000,000 500,000 0 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% Slide no. 10 © South African Tourism 2012Note: Africa Air Markets are markets where at least 60% arrives to SA use air transport; Africa Land Markets are markets where atleast 60% of arrivals to SA use road transport. Long-haul markets include all countries outside of AfricaSource: Table A Tourist Arrivals Jan - June 2012
  11. 11. 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 300,000 250,000 200,000 Tourist Arrivals 150,000 100,000 50,000 0 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% Slide no. 11 © South African Tourism 2012Source: Table A Tourist Arrivals Jan - June 2012
  12. 12. Asia & Australasia saw 33.0% increase in tourist arrivals with growth in all major markets for this region for this period compared to 2011. Tourist arrivals to South Africa from Asia & Australasia, Jan - June 2012 300,000 250,000 200,000 Tourist Arrivals 150,000 100,000 50,000 0 China (including Hong Other Asia & Asia & Australasia Australia India Japan Kong) 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% Slide no. 12 © South African Tourism 2012Source: Table A Tourist Arrivals Jan - June 2012
  13. 13. 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. Tourist arrivals to South Africa from Europe, Jan - June 2012 700,000 600,000 500,000 Tourist Arrivals 400,000 300,000 200,000 100,000 0 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% Slide no. 13 © South African Tourism 2012Source: Table A Tourist Arrivals Jan - June 2012
  14. 14. 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 partnershipSlide no. 14 © South African Tourism 2012
  15. 15. Total Market SizeBased on the screening criteria, the segmentation frame represents 8.6 Mn Brazilians or 4.5% of the population 192.4 MnTotal Brazilian Population Filters Explanation (100% of total)  Household Income > R$ 40,000  Household income of 43.2 Mn per annum R$ 40,000 was the initial Can Afford Long threshold for Brazilians Haul Travel travelling long-haul for leisure (22.4% of total) 11.5 Mn South Africa Tourism is Reside in the  Household income > R$ 40,000  prioritising 9 cities within Prioritised Cities  Live in prioritised1 cities (6.0% of total) Brazil 8.6 Mn  Household Income > R$ 40,000  Adults are the key participants Are over 18  Live in prioritised1 cities in the travel buying process Years of Age Adults (older than 18 years) (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 Slide no. 15 © South African Tourism 2010Note: 1São Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Salvador, Recife, Fortaleza, Brasília or CuritibaSource: Monitor and Grail Research and Analysis; IBGE Census, 2010; IBGE Population Estimate, 2011
  16. 16. Summary of Segments (1/2)A E Building up their lives Mature Couples  Younger single people without children,  Over 30, wealthy, married and single people from medium income households, who without children who are experienced prefer to travel with friends and are more international travellers, who are looking for likely to stay in B&Bs or 3-4 star hotels cultural and natural experiences and are when on holiday eager to try new things  Volume = 7.9% of total market  Volume = 13.6% of total market  Value = R$ 12,200 per trip  Value = R$ 14,000 per tripB F Home-loving couples Experienced travellers  Older couples without children and medium  People (single and married) from all ages income who don’t travel a lot and when and incomes and without children who they do are more likely to VFR travel frequently to explore new places and  Volume = 5.3% of total market are more likely to book their trips online  Value = R$ 11,200 per trip  Volume = 8.4% of total market  Value = R$ 11,400 per tripC Independent travellers G Beginning to enjoy life  Single or divorced people without children,  Over 40 year-old couples with no children or earning medium income who have taken 2-3 independent children, from wealthy trips in the last 2 years, the majority of households who, although they don’t travel whom prefer to travel alone and meet new often, say price is not a concern. They people prefer less crowded and peaceful travel  Volume = 3.6% of total market experiences while exploring new cultures  Value = R$ 12,300 per trip  Volume = 5.0% of total marketD Young professionals  Value = R$ 17,700 per trip  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$10,700 per trip Slide no. 16 © South African Tourism 2010
  17. 17. Summary of Segments (2/2)H L First time parents Local family travellers  Medium income, young couples with  Middle-aged and wealthy couples with children who are price sensitive but keen to children who are family-oriented and have fun and relax with family when consider travel important for their lives. travelling They enjoy relaxing holidays and are  Volume = 2.8% of total market travelling closer to home  Value = R$ 11,600 spent per trip  Volume = 7.5% of total marketI  Value = R$ 12,700 spent per trip Focused on other priorities  Young wealthy couples with children who M don’t think travel is a priority: they prefer Conservatives families to save money, build up their home and  Older, wealthier couples with children who they spend less on travelling than they do consider many options before travelling on on other forms of entertainment holiday or to VFR. They are less likely to  Volume = 4.7% of total market gather information online but expect to  Value = R$ 10,000 spent per trip travel internationally more in the futureJ  Volume = 6.7% of total market Traditional Brazilian families  Value = R$ 13,100 spent per trip  Older couples with children from medium income households, who want to spend time N with family when on holiday and prefer to Sophisticated families travel during their children’s holidays  Over 30, wealthy and highly educated  Volume =75.3% of total market couples with children who travel frequently  Value = R$ 14,000 spent per trip with their partner. They consider travel aK necessity and are spending more on travel Family explorers and travelling further abroad  Couples with children from all ages and  Volume = 11.2% of total market incomes who travel a lot, to destinations  Value = R$ 13,100 spent per trip 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 Slide no. 17 © South African Tourism 2010
  18. 18. Prioritised Segments Young Professionals Mature Couples Experienced Travellers Sophisticated Families Young, single They are middle-aged They are specialists Business people in upper professionals who are married business men without children who management with aDemographics well educated and earn and women who don’t family who are earning have been to college and well for their age have children travel extensively very well They work hard in the They live with their Lifestyle is important to Balancing their career week and relax on parents, work hard and them and they enjoy and family lives is Lifestyle weekends seeking have an active social life interacting with other important to them balance in their lives in Sao Paulo people They travel to relax and They are passionate They travel often to They travel to have fun escape, taking walks in about travel looking for spend time together, and create memories beautiful places &Travel Mindset new, different and enjoying a mix of with their friends enjoying culture and authentic experiences activities shopping They use online sources They use online sources They use online sources They use online sources for information and use for information and use for information and use for information and useBuying Process both online and agents to both online and agents to both online and agents both online and agents book their trips book their trips to book their trips to book their trips Slide no. 18 © South African Tourism 2010
  19. 19. Product StructureTherefore, in order to offer a more attractive package to Brazilians SAT should provide a cost-effective basepackage which addresses the general travel requirements and a menu of options for customisation by segment Aspects covered by the Base Package Product Structure  Length of Stay – All priority segments travel for two weeks at a destinations on average Base Package  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 D E F N – Transfers, car-hire and taxicab offerings should be available – Where relevant, transportation should be linked to activities Slide no. 19 © South African Tourism 2010
  20. 20. Young Professionals ActivitiesThere are a wide-range of activities which would interest Young Professionals from Shopping at the Rosebankmarket and visiting a Soweto shebeen to partying on Long Street or zip-lining in Hazyview Experience new places, cultures and people Fun adventures with friends  Young Professionals are still discovering the world.  Spending time with friends They enjoy experiencing different ways of life while and creating fun memories is having fun with their friends. For example, they’d important to them. They enjoy: would enjoy: – Spending time in Sandton – Partying on Long-street in and Soweto seeing how Cape Town and Rosebank in different people live in South Johannesburg Africa – Zip-lining in Hazyview – Going to a local shebeen and with a group of four drinking with local South friends Africans – Attending a South African – Shopping at markets and stand-up comedy or poetry shops in Sandton City, session in Braamfontein Rosebank Market and the – Bungee jumping at the V&A Waterfront Bloukrans Bridge – Attending a local football – River-rafting down the match at Soccer-city Sabie river with friends – Understanding an African – Learning to dive at culture at the Lesedi Village Sodwana in KZN Slide no. 20 © South African Tourism 2010Source: Monitor and Grail Research and Analysis
  21. 21. Mature Couples ActivitiesMature 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 Experience new places, cultures and people Fun adventures together  Mature Couples need to relax when they travel and  They are also quite enjoy spending time together doing activities which adventurous and change their views on the world. For example: alternative and would – Relaxing at a comfortable enjoy: lodge in the Pilansberg – Relaxing sundowners on – Walking through Durbanville Camps Bay beach wine farm in the Cape – Ballooning over the – Visiting Robben Island to see Magaliesberg how prisoners lived – Microlighting over the – Shopping in Sandton City for Cape Peninsular fashion and luxury items – Enjoying a concert over – Speaking with a Zulu warrior lunch in Constantia at the Lesedi village – Shark-cage diving to – Having a relaxing lunch in add some excitement to Hout Bay the trip – Enjoying a sunset over – Visit the penguin colony Johannesburg at Boulder Beach Slide no. 21 © South African Tourism 2010Source: Monitor and Grail Research and Analysis
  22. 22. Experienced Travellers ActivitiesThere are many authentic activities which will appeal to Experienced Travellers such as the Maropeng WorldHeritage site, township experiences in Alexandra and tracking animals on foot in the Kruger National Park Experience new places, cultures and people Fun adventures  Experienced travellers look for new and different  More adventurous experiences but also like to get the local perspective experiences can make their to make sure it is authentic, such as: trip more impactful: – Visiting Maropeng in the – Tracking animals on Cradle of Humankind, one foot in the Kruger Park of the Worlds heritage sites – Visiting the Cango Caves – Take a self-drive trip through for a different the Kruger National Park experience – Authentic township – Hiking in the experience in Alexandra Drakensberg to see the – Make use of local Lesotho border transportation including – Wine-tasting at Klein Gautrain and Minibus Taxi’s Constantia – Visiting District 6 to – Road-trip from Cape understand the effect of Town to Port Elizabeth apartheid – Enjoy traditional – Visiting Hermanus to see the Babooti at a Cape Malay whales restaurant Slide no. 22 © South African Tourism 2010Source: Monitor and Grail Research and Analysis
  23. 23. Sophisticated Families ActivitiesThere are many family orientated activities which Sophisticated Families will enjoy such as interacting withlion cubs at the lion park, visiting Sun City, riding ponies in the bush and watching dolphin shows at Ushaka Experience new places, cultures and people Fun adventures with the family  As sophisticated parents, this segment want to show  Fun activities are create their children the world and create opportunities to for Sophisticated Families as make memories together. In SA they can: everyone can relax and enjoy the time together. – Spend time on the beach with Some examples are: their children in Ballito – Walking through the – Interact with Lion cubs at the Cape Town aquarium Lion park near Johannesburg – Visiting the Spier wine – Visit Sun-City to enjoy activities estate with children for the whole family activities – Enjoy activities at resorts for – Pony-riding through the children giving parents a break bush – Do family safari’s where rangers – Riding rollercoasters at show children interesting Gold Reef City wildlife – Watching shows at – Go to the zoo and see animals Monte Casino close up – Watching a Dolphin show at Ushaka Marine World Slide no. 23 © South African Tourism 2010Source: Monitor and Grail Research and Analysis
  24. 24. Channels: Travel AgentsBesides the growth of online bookings through supplier websites, travel agents (including both personal visitsand online interactions) are still the main channel for Brazilians Brazil Travel Market Bookings (in USD Bn)2, 2008–2012E TOP TOUR OPERATORS & TRAVEL AGENCIES 24 22 15% 20 14% 8% 12% 6% 16 5% 11% 3% 79% 77% 83% 86% TOP TRAVEL WEBSITES 2009 2010 2011E 2012E Supplier Website Traditional Bookings OnlineTravel Agents Slide no. 24 © South African Tourism 2010Source: Monitor and Grail Analysis
  25. 25. Channels: InternetAlthough Brazil ranked 5th for the number of people who can access the Internet, with 37% of the populationusing the internet. Facebook is the most accessed website. Internet users by economic class 89% Most Accessed General Websites 83% 76% 59% 79% 79% 41% 27% 16% 59% 7% 42% 40% A1 A2 B1 B2 C1 C2 D E 38% Internet users by age 72% 58% 62% 44% 34% Facebook Google You Orkut UOL Twitte 23% Tube r 9% 10-14 15-19 20-29 30-39 40-49 50-64 65+ Slide no. 25 © South African Tourism 2010Source: Monitor and Grail Analysis
  26. 26. 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 partnershipSlide no. 26 © South African Tourism 2010
  27. 27. Prioritisation of Consumer Segments Total Size of the FrameThe segmentation frame represents 2.3 million Indians; i.e., people aged 18 or above, residing in the thirteenfocus cities and with a household income greater than INR 1,600,000 1,206.9 mn Total Population (100% of total) 7.2 mn  Household income of INR 1,600,000 million Capable of Long was found to be the threshold for Indians who Haul Travel (0.6% of total) regularly participate in long-haul leisure travel Population in 3.6 mn  The greatest opportunity lies in the largest Prioritised1 cities, as well as those cities which display Cities (0.3% of total) strong socio-economic factors 2.3 mn Adults  Adults (aged 18 or above) are the key (0.2% of total) participants in the travel buying process 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 Slide no. 27 © South African Tourism 2010Note: 1The prioritised cities are: Ahmedabad, Amritsar, Bagalore, Chandigarh, Chennai, Delhi, Hyderabad, Kolkata, Ludhiana, Mumbai, Pune, Surat, VadodaraSource: 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
  28. 28. High Level Segment OverviewA E Younger, Traditional, Couples Younger to Middle-Aged, Exotic and Worldly  Couples, with young children, the majority Couples of whom live in other metros and prefer to  Couples with no children who travel stay with friends and family or in infrequently but enjoy exploring new guesthouses and B&Bs when on holiday cultures and destinations while on holiday  Volume = 5.3% of total market  Volume = 5.5% of total market  Value = INR 0.87 mn per person p.a.  Value = INR 0.53 mn per person p.a.B Younger, Exotic and Worldly, Couples F Younger, Worldly, Singles and Couples  Couples, with young children, who mainly  Singles and couples with no children, who live in super metros, travel fairly frequently travel very frequently and seek adventure and typically seek a romantic holiday or romantic holidays  Volume = 6.5% of total market  Volume = 8.0% of total market  Value = INR 0.89 mn per person p.a.  Value = INR 1.27 mn per person p.a.C Younger, Worldly, Very High Income Families G Middle-Aged, Traditional, Couples  Couples, with dependent children, who  Couples, with grownup children that have travel very frequently and stay in B&Bs and left home, who typically travel to visit guesthouses friends and family  Volume = 3.7% of total market  Volume = 6.4% of total market  Value = INR 2.39 mn per person p.a.  Value = INR 0.53 mn per person p.a. Younger, Traditional, Singles and Couples Older, Traditional and Exotic, High-VeryD H  Singles and couples with no children who High Income Couples travel fairly regularly and look to have  Couples with no children who predominantly romantic holidays when they travel live in super metros and travel fairly  Volume = 13.8% of total market frequently  Value = INR 0.48 mn per person p.a.  Volume = 5.0% of total market  Value = INR 0.85 mn per person p.a. Slide no. 28 © South African Tourism 2010
  29. 29. High Level Segment OverviewI M Middle-Aged, Worldly, Very High Income Middle-Aged to Older, Traditional and Exotic, Couples Very High Income Couples  Couples, some with children, who travel very  Couples, with dependent children, who frequently and stay in five star hotels fairly predominantly reside in super metros and regularly travel infrequently  Volume = 11.3% of total market  Volume = 6.8% of total market  Value = INR 2.02 mn per person p.a.  Value = INR 0.48 mn per person p.a.J N Middle-Aged, Traditional and Exotic, High Older, Traditional, High Income Couples Income Couples  Couples, with dependent children, who  Couples, with dependent children, the mainly stay in other metros and travel majority of whom reside in other metros and infrequently, visiting friends and family travel infrequently during holidays  Volume = 8.3% of total market  Volume = 3.4% of total market  Value = INR 0.36 mn per person p.a.  Value = INR 0.62 mn per person p.a. OK Older, Exotic and Worldly, High Income Middle-Aged, Worldly, High Income Couples Families  Couples, with dependent children, who live  Couples, with dependent children, who mainly in super and other metros, travel very travel frequently, usually going on family frequently holidays  Volume = 5.2% of total market  Volume = 3.4% of total market  Value = INR 1.04 mn per person p.a.  Value = INR 0.45 mn per person p.a.L 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. Slide no. 29 © South African Tourism 2010
  30. 30. Prioritised Segments Segment I: Seasoned Status Segment C: Young Family Segment F: Social Explorers Seekers Adventurers Seasoned Status Seekers are Social Explorers are young singles and Young Family Adventurers are predominantly middle-aged couplesCharacteristics couples without kids who have high to young, very high income, married with kids, residing in the super very high annual household incomes; couples with kids, who typically metros; they have very high Key they are very well-educated and tend to reside in the larger metros; they incomes, are well-educated and work as specialists or professionals are well-educated and occupy occupy mostly senior management senior positions in the workplace positions in the workplace Seasoned Status Seekers are Social Explorers enjoy the thrill of With the increased responsibility experienced travellers and thus seeing new places and meeting new of a young family, Young Family look to derive the most out of their people. This segment is comprised of a Adventurers are interested in trips to new destinations. They diverse range of travellers — at one end broadening their horizons and prefer having a full itinerary of the spectrum are couples looking to exploring new cultures andBehaviour Travel consisting of a wide range of go on a romantic holiday, at the other traditions, whilst having fun and activities that allow them to end are singles travelling with friends spending some quality time with explore new places while still looking to have fun, enjoy the nightlife their family. Finally, travelling enjoying some family time away and take part in adventure sports. The relaxes and rejuvenates them, from their usual busy lives. common theme across this segment is providing new impetus when they that everyone is looking for fun, return to work. freedom and a relaxing time.Slide no. 30 © South African Tourism 2010
  31. 31. Centre of Gravity Products and ActivitiesThese travellers are looking for partial packages with a trip length of between seven and twelve days, a spend of ~INR175,000 per person and three to five star hotels. Safety and cuisine are priorities for the family segments Seasoned Status Seekers Social Explorers Young Family Adventurers  Look to stay for ten to twelve  Look to stay for seven to ten days  Look to stay for seven to ten days days  Spend of ~INR 175,000  Spend of ~INR 175,000  Spend of ~INR 200,000 (~USD 3,500) per person (~USD 3,500) (~USD 4,000) per person  Seek comfortable and clean three  Seek three star hotels,  Seek well-located, four to five to four star hotels guesthouses and BnBs Products star hotels  Prefer partial packages  Prefer partial packages with  Prefer partial packages including  Typically travel to Cape Town, special rates for young kids tour guides Johannesburg and Durban  Concerns over safety and security,  Concerns over safety and security, and availability of Indian and and availability of Indian and vegetarian food vegetarian food  Typically travel to Cape Town,  Typically travel to Cape Town, Durban, Sun City and Jo’burg Johannesburg and Durban  Enjoy having a full itinerary  Look for fun, thrilling activities  Seek a wide variety of fun, filled with a wide variety of that give the sense of being free family-orientated activities activities suitable for the and unrestricted  Key activities include: whole family Activities  Key activities include: – Visiting major attractions  Key activities include: – Visiting major attractions – Natural attractions including – Natural attractions including – Adventure activities wildlife wildlife – Nightlife – Relaxing – Cultural attractions – Relaxing – Shopping – Theme parks – Shopping – Adventure activities – Adventure activities Slide no. 31 © South African Tourism 2010Source: Monitor and Grail Analysis
  32. 32. Products and ActivitiesPartial packages would appeal to travellers from all segments as it leaves some time for travellers to exploreon their own or simply relax; trips to South Africa should comprise visits to the major cities and locations Type of Package Destinations  Partial packages (flights, accommodation, airport  Packages to South Africa should several of the major transfers and limited activities) are preferred as they cities and locations, ensuring that Indian travellers fully allow travellers the chance to explore a destination at appreciate the diverse range of activities and their own pace experiences on offer – For example, a ten day package could consist of six – Major cities such as Cape Town, Durban and days of pre-arranged activities and four days for Johannesburg provide Indian travellers with the travellers to explore by themselves or simply relax chance to explore urban life in South Africa, visit  Indian travellers would look to stay between seven and major tourist attractions, relax on beaches where twelve days in South Africa and spend between INR possible and engage in a wide variety of activities 150,000 and INR 225,000 (USD 3,000–4,500) – Kruger National Park offers Indian travellers the  These consumers seek accommodation that is clean, opportunity to view South Africa’s amazing wildlife comfortable and well-located; there are, however, and natural scenic beauty subtle differences in what each segment looks for – Sun City and the “Valley of the Waves” provides a – Seasoned Status Seekers prefer luxury while Social family experience and is regarded as a status symbol Explorers and Young Family Adventurers seek a due to its previous hosting of the IIFA1 decent standard of accommodation – For example, a ten day trip to South Africa could  Special rates for children would appeal to the family include four nights in Cape Town, two nights in segments and should be incorporated into packages for Durban, two nights at the Kruger National Park and these segments one night apiece at Sun City and in Johannesburg – E.g., entry fees for visits to theme parks could possibly be incorporated into packages for Young Family Adventures or Seasoned Status Seekers Slide no. 32 © South African Tourism 2010Note:1 InternationalIndian Film AwardsSource: Monitor and Grail Analysis
  33. 33. Products and Activities 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 Cuisine  Each of the priority segments seek holidays where they  Indian travellers have specific food requirements with can explore the destination and participate in a wide- the availability of Indian or vegetarian cuisine at a range of activities, where the activities offer destination influencing their choice of destination something different from what they can experience  While some Indian travellers do like to explore the back in India local cuisine at a new destination, having the option to  Typical activities include exploring the natural scenic have either Indian food or pure vegetarian food is beauty and culture, visiting the major tourist extremely important across all segments attractions, nightlife, shopping and adventure – Most Indian travellers prefer to have Indian food – In terms of nightlife, Social Explorers are looking to during their trip although they would be willing to visit popular bars and clubs whereas Seasoned have local cuisines on some nights Status Seekers are looking to dine-out and explore  SAT is currently producing a guide to the Top the local culture at night 100 Indian restaurants in South Africa – Each segment’s definition of adventure activities – Many Indian travellers are vegetarian. Although they differs slightly can bring along ready-to-mix packets, destinations  Seasoned Status Seekers and Young Family which cater for them are preferred Adventurers look for “safe adventure”, e.g.,  The vegetarian options need not necessarily be snorkelling or water-skiing Indian in style  Social Explorers seek out more thrilling  SAT is currently producing a guide to the activities that provide them with the adrenaline vegetarian restaurants in South Africa’s major rush and feeling of escape cities. This guide should be made available on the  Both Seasoned Status Seekers and Young Family SAT website and shared with the major tour Adventurers look for family-orientated activities that operators to emphasise that South Africa does appeal to both young children as well as adults (e.g., cater for vegetarians theme parks, water parks, shopping or shows) Slide no. 33 © South African Tourism 2010Source: Monitor and Grail Analysis
  34. 34. 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 Primary Sources of Travel-Related Information, 2012 Seasoned Status Seekers 26% Social Explorers Young Family Adventurers Average 21% 21% 18% 18% 16% 16% Percentage 15% 14% 12% 10% 10% 10% 10% 9% 9% 9% 8% 8% 8% 8% 7% 5% 5% 5% 3% 3% 1% Word of Mouth Online Media Travel Magazines Travel Agents Travel Booking Television Social Networking and Booklets / Tour Website Websites Operators Slide no. 34 © South African Tourism 2010Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012
  35. 35. 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 Topics on Which Information is Gathered, 2012 Seasoned Status Seekers Social Explorers 76% Young Family Adventurers 73% 73% 71% Average 70% 70% 69% 64% 64% 64% 61% 59% Percentage 56% 54% 55% 52% 55% 53% 53% 52% 52% 52% 50% 48% 44% 44% 41% 40% Major Accommo- Weather Transport Costs of Various Things / Local People Tourist dation Facilities Activities Activities To and Culture Attractions Do Slide no. 35 © South African Tourism 2010Source: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012
  36. 36. Centre of Gravity WebsitesGoogle and Facebook are the two most popular websites across all segments Websites Consumed in Leisure Time, 2012 Seasoned Status Seekers 91% 89% 89% Social Explorers 86% 82% 82% 82% Young Family Adventurers 79% Average1 73% 71% 70% 70% 70% 65% 62% 61% Percentage 53% 53% 47% 47% 42% 41% 43% 42% 40% 39% 36% 36% Google Facebook Yahoo Youtube Wikipedia Redif Orkut f Slide no. 36 © South African Tourism 2010Note: 1 Average shown is across all segments and is not limited to the prioritised segments onlySource: Monitor and Grail Analysis; “Quantitative Research Survey — India”, SAT, Jan 2012
  37. 37. Centre of Gravity Booking ChannelAlthough online channels are popular for booking both accommodation and airfare, consumers rely heavily onpersonally visiting travel agents Booking Channel Used to Book Accommodation, 2012 Booking Channel Used to Book Airfare, 2012 20% 25% Personal Online - 21% 26% 18% Visit - Airline/Hotel 31% 23% Travel Agent 27% 19% 24% Online - 21% Online - 27% Travel Agent 8% Airline/Hotel 21% 17% 23% Personal 17% 14% 12% Online - 13% Visit - 6% Travel Agent 10% Travel Agent 15% 14% 18% 10% Personal Telephone - 14% 7% 23% Visit - Travel Agent 13% 14% Airline/Hotel 12% 10% 8% Telephone - 8% Travel 7% Airline/Hotel 19% Website 2% 11% 8% Personal 7% 7% 11% Telephone - 5% Visit - 15% Travel Agent 8% Airline/Hotel 9% 5% Seasoned Status Seekers 6% 7% Social Explorers Travel 7% Telephone - 5% 6% Young Family Adventurers Website Airline/Hotel 8% 6% 5% Average Slide no. 37 Percentage Percentage © South African Tourism 2010Source: Monitor and Grail Analysis; ‘Quantitative Research Survey – India’, SAT, Jan 2012
  38. 38. Trade 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), 1 Thomas Cook and SOTC/Kuoni” - Market Insights: India, European Travel Commission, Mar 2010 Major Online Travel Websites, 2010-2011 3.9 April 2010 Monthly unique visitors1 3.5 April 2011 (million) 2.4 2.1 1.9 1.8 1.6 1.2 0.7 0.5 % Share of Make My Trip3 Yatra3 Cleartrip3 Expedia3 Holiday IQ UniqueNotes: 1Detailed profile of company in back-up Slide no. 38 Visitors2 20.9% 19.0% 11.6% 9.9% © South African Tourism 2010 3.9%Source: Monitor and Grail Analysis; “Market Insights: India”, European Travel Commission, Mar 2010; India Outbound 2011- MICE travel, Today’s TravellerNewswire, 2011;
  39. 39. 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 partnershipSlide no. 39 © South African Tourism 2010
  40. 40. Possible MarketThe study looked at South African adults earning more than R3,000 per month. Leaving a possible market of~8.2 Mn people to target Total South African 50 Mn1 population (100% of total) 30.3 Mn Adult population over the age of 18 years (60.6% of total) 8.2Mn2 Adults earning more than R3,000 per month (personal income) (16.4% of total)  A previous SAT study has shown that... 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 Slide no. 40 © South African Tourism 2010Note:1 2010figures; As per UNISA, 2~22 Mn people in SA earned less than ZAR 3,000-3,500 pm in 2010Source: Monitor/ Grail Analysis; SAT Domestic Surveys
  41. 41. High Level Segment Overview Low Income Older Singles & Couples Business Travellers  Low-income Whites, Coloureds and Indians of  High-income Blacks, Coloureds and Indians, all ages, with no kids aged 18-45, travelling for business Low Income Families Well-to-Do Mzansi Families  Low-income Whites, Coloureds and Indians of  High-income Blacks, Coloureds and Indians all ages, with kids with dependent kids, mostly middle-aged Black Single-Parent Families  Low-income Blacks travelling for VFR, Spontaneous Budget Explorers including all ages and family situations  Middle- to high-income 18-24 years olds of all races and all family situations Low Income Black Singles  Low-income Blacks travelling for holiday and Seasoned Leisure Seekers special/ religious/ business events, including  White, middle and high-income, 25-45 year all ages and family situations old people without children Up & Coming Young Black Singles  Middle-income, 25-35 year old Blacks, Established Holiday Families Coloureds and Indians with or without kids  White, middle and high-income, 18-45 year old people with children New Horizon Families  Middle-income Blacks, Coloureds and Indians Older Middle Income Whites over 35 years old . Most are married with kids  Middle-income Whites of all family situations, all over 46 years old High-Life Enthusiasts Older High Income  High-income Blacks, Coloureds and Indians,  Older, high income people of all races. Most aged 25-45, without kids and mostly single are married and about half have dependent kidsSlide no. 41 © South African Tourism 2010
  42. 42. Focus SegmentsSpontaneous Budget New Horizon High-Life Seasoned Leisure Well-to-Do Mzansi Explorers Families Enthusiasts Seekers Families 18-24  35+  25-45  25-45  18-45 All races  Black, Coloured  Black, Coloured  White  Black, Coloured and Indian and Indian and Indian R5,001+  R5,001+  R5,001- R10,000  R10,001+  R10,001+ Avg. length of  Avg. length of  Avg. length of  Avg. length of  Avg. length of stay: 5.4 nights stay: 5.2 nights stay: 4.5 nights stay: 7.7 nights stay: 5.6 nights Trips/ year: 3  Trips/ year: 3.1  Trips/ year: 3.1  Trips/ year: 4.4  Trips/year: 3.2 Avg. spend:  Avg. spend:  Avg. spend:  Avg. spend:  Avg. spend: R1,252.00 R1,160.50 R1,265.54 R1,853.40 R1,687.80 Travel is a way to Travel is a way to Travel is a way of Travel is all about Travel is a way to boost one’s social escaping the city, educate their life and something discover new status, and to and being able to children, and to of a necessity. people, places and experience the finer spend time with provide them with Having grown up adventures. things in life in new friends and family in the opportunity to going on regular Consumers in this and different new and different broaden their holidays, this group segment travel to settings locations. To a perspectives. It is of consumers get away from the certain extent, also seen as quality understands the monotony of daily travel is also about time for the family value of travellife; to add to their exposing the children to spend together, experiences andlife experiences and to alternative ways and a reward for memories over fond memories of life and activities hard work commodities Slide no. 42 © South African Tourism 2010
  43. 43. Spontaneous Budget Explorers Products: What the Spontaneous Budget Explorers Look ForSpontaneous Budget Explorers are looking for trips that will allow them to take part in lots of activities innew surroundings with their friends; these packages must, however, not be too prescriptive WHAT KIND OF PRODUCTS DOES THIS SEGMENT LOOK WHAT IS THE DESIRED OUTCOME OF PRODUCT FOR? DEVELOPMENT FOR THIS SEGMENT?  Spontaneous Budget Explorers are looking to stay at  Products aimed at this segment should: 2- to 3-star BnB or self-catering accommodation – Be affordable  Typically, they drive to the destination – Be activity-filled without being too prescriptive – For further destinations, they may take a bus or about when the activities must be done fly on a low-cost carrier – Take into account that the journey must be as  They will typically pay ~R1,500 for a weekend trip enjoyable as the destination  They take ~3 weekend trips during the year, – Allow them to have a space in which to socialise especially over long weekends with their friends (e.g., a communal outdoor area)  They are likely to take a week-long trip in December, either with: – Take into account their propensity for spontaneity and adventure – Family, in which case they are not paying for, or planning, the trip 79 % of Spontaneous Budget Explorers prefer a weekend – A significant other or friends holiday filled with activities compared to a quiet weekend getaway Slide no. 43 © South African Tourism 2010Source: Monitor/ Grail Analysis; Domestic Segmentation Quantitative Survey 2011
  44. 44. Spontaneous Budget Explorers Products: Some Illustrative ExamplesIdeal packages for Spontaneous Budget Explorers should sell fun with friends. Examples of these packagesinclude driving trip promotions, road trip packages and even activity-driven day trips DRIVING TRIP PROMOTIONS ROAD TRIP-DRIVEN PACKAGES  Many Spontaneous Budget Explorers use their cars for local getaways  A tour of South Africa on a bus for 2 weeks with – Promotions related to savings that can be other young South Africans provides made on the road are one way to encourage Spontaneous Budget Explorers with the consumers to travel more opportunity to visit multiple destinations  These promotions could include: without too much organisational hassle, while – A frequent traveller card that allows for enabling them to pay most of the costs discounts on the toll roads in low season upfront months – e.g. A road tour of the coastal regions – Loyalty cards at garages, e.g. Fill up at only starting in Durban and ending in Cape Town Engen filling stations and earn points to get a – e.g. Overland safari covering the provinces free 6-pack of Coke in the interior ACTIVITY- DRIVEN DAY TRIPS Save on road Spontaneous Budget Explorers are keen to try trips within  new things and experience different South Africa 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 55% of Spontaneous Budget Explorers said that at a discounted rate special offers on flights would make them travel – e.g. Bungee jump from the Soweto towers more, while 41% felt that affordable and customised and have lunch at a restaurant in Orlando package deals would encourage them to travel Slide no. 44 © South African Tourism 2010Source: Monitor/ Grail Analysis
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