Connect with us

Hospitality & Tourism

Fastjet taking you places with its new campaign

Published

on

With the aim to better connect African customers with the airline and encourage them to become frequent fliers, fastjet has launched a new, strategic ‘Taking you Places’ campaign. The campaign will be implemented across fastjet’s core markets in Tanzania, Zimbabwe, Zambia and South Africa, to reinforce the low-cost airline’s commitment to providing affordable, convenient and accessible air travel for everyone in Africa.

The core focus of ‘Taking You Places’ is the fastjet customer, and the frequent or first-time flyer. Its purpose is to effectively deliver on the airline’s mandate – to make air travel more affordable and accessible for everyone – while highlighting the airline’s culture and route network.

Driving brand affinity with existing and potential customers

“The new campaign encourages a more emotive approach in tandem with our value proposition. We expect this to drive brand affinity with existing and potential customers,” says Nico Bezuidenhout, CEO at fastjet. “fastjet makes it more affordable for traders to take their business to the next level, to connect people with loved ones, and to make dream holidays a reality.”

Gendel Strategic Marketing Group (Gendel), recently appointed as fastjet’s creative agency, will execute the ‘Taking You Places’ campaign. Gendel will also introduce fastjet’s new tagline from ‘Smart Travel’ to an airline ‘For Everyone’, which reflects its market position as a low-cost airline for the network and communities that it serves.

“The campaign will enrich the innovative and ambitious spirit of the fastjet brand,” says Samantha Jones, director at Gendel. “Our extensive experience and successes within the travel, tourism and commercial aviation industry on the continent position us well to collaborate with fastjet and help grow the brand.”

Making an impact on African aviation

fastjet’s route network includes Tanzanian domestic routes from its Dar es Salaam base to Kilimanjaro, Mbeya, and Mwanza, and international routes from Tanzania to Lusaka in Zambia and Harare in Zimbabwe. It also flies domestically from Harare to Victoria Falls, and internationally from Harare to Johannesburg in South Africa.

“fastjet has positively impacted aviation on the African continent by making air travel more accessible and providing reliable, on-time and affordable flights. Since launching in November 2012, we have flown over 2.5 million passengers, many who were first-time flyers and may not have previously had access to affordable air travel,” says Bezuidenhout.

Source:bizcommunity

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Hospitality & Tourism

African Hotel Reopening Strategies And Recovery Responses

Published

on

Leading hospitality advisory and brokerage consultancy, HTI Consulting recently hosted its second Pan-African ‘Virtual Hotel Club,’ a digital forum that saw the operations directors from major brands active in the African hotel space share their unique insights around hotel re-opening strategies and ‘lessons learnt’ during the current global pandemic.

An introductory session saw key data delivered by CEO of HTI Consulting, Wayne Troughton, followed by a panel discussion involving the representatives from major hotel brands including: Accor, Hilton, Radisson Hotel Group, Cresta Hotels, Onomo and Valor Hospitality Partners.

Tourism’s fight for recovery

“The impact of the Covid-19 pandemic on the African tourism Industry has been both overwhelming and immediate,” stated Troughton. “When comparing figures to last year, Q1 2020 saw a total of 67 million fewer tourist arrivals to African countries, coupled with a loss of $80 billion in export revenue and 100% of destinations imposing travel restrictions of some kind,” he said.

“Data provided by STR Global reveals that hotel occupancy rates (Jan – Jul 2020) fell a staggering 79.2% to 16.9% across Africa, ADR (Average Daily Rates) dropped 9.8% to US$ 93.98, whilst RevPar (Revenue Per Available Room) fell 75.8% to US$15.91,” he continued. “The obvious impacts of lockdowns and the closing of international borders are clearly illustrated in these numbers,” he said. “But, in the past few
weeks we’ve finally begun to see reassuring signs as restrictions are lifted, international borders reopen and many hotels come back online,” he said.

“From an international travel perspective, its encouraging to see airlines such as Emirates, Qatar and Kenyan Airways resuming several flights to African destinations, and Ethiopian Airlines already operating at 40% of pre-Covid capacity. Hopefully these resumptions signal the start of an upward trend, although airlines such as KLM, AirFrance and Lufthansa are still blacklisted in some Africa countries due to EU
Covid legislation,” he stated.

Still more encouraging, Troughton acknowledged, was that STR Data (Jan – Jul 2020) revealed that most branded hotels across East, West and Southern Africa have reopened doors. Occupancy rates in West Africa in July showed Nigeria (22.1%) as more resilient than other markets due to higher domestic demand, whilst in East Africa, Ethiopia was the best performer (increasing to 25.7% in July from a 16.7% low in April) compared to neighbours Tanzania and Kenya who lack similar international business demand.

Unsurprisingly, South Africa suffered the lowest occupancy rates in the Southern African region YTD July. International border closures and strict interprovincial travel lockdowns saw the vital regional hub experience a fall of -48% points in occupancy rates from 57.2% in January to 8.7% in July. It appears the country has now managed to flatten the curve and international borders open on 1st October, though with many key source markets experiencing worrying second wave outbreaks, the results of these openings await to be seen.

“Though the large majority of branded hotels, within the STR portfolio, across Africa have reopened, the current crisis continues to affect travel and tourism businesses of all sizes, from the largest international airlines to the smallest independent hotel owners,” said Troughton. “Immediate responses have understandably focused on designing plans for short-term survival. As the crisis evolves, however, the industry is now identifying key priorities and procedures to facilitate recovery in the medium to long-term.”

Navigating new pathways to open doors
In the panel session, participants shared some of the motivations and considerations around hotel reopenings: 
Samantha Annandale (Regional Operations Director, Onomo Hotels) kicked off discussions, stating that the key motivation behind Onomo’s decision to reopen certain properties was, naturally, focused on breakeven parameters. “A tremendous amount of work went into establishing these base figures, as well as incorporating the vital human elements aligned to each property,” she said. “Further considerations centred on lockdown regulations and assessing the overall ‘appetite for travel,” she continued. “We were also keenly aware that in remaining ‘risk averse’ for too long, we potentially risked losing market share and support.” The Onomo group focuses predominantly on 3-star corporate city hotels or hotels near airports, which they all own and operate themselves.

Also Read: Interview with Ava Airways CEO, Olivier Arrindell

Jan Van der Putten (VP Operations Africa &; Indian Ocean, Hilton Hotels) emphasised that ascertaining demand and opportunity were also some of the critical factors behind the group’s decisions to reopen hotels. “Ultimately, we knew there was no one recipe,” he stressed. “Issues such as cash flow and obtaining the owner’s agreement as to the right decision for each location remained imperative to us.”
Craig Erasmus (VP Operations, Accor Hotels) was in agreement regarding the importance of discussions with each property owner concerning the reopening of certain properties. Much attention was given to aspects such as safety, sanitisation and ensuring properties were completely prepared to ‘right-side to the new normal’ in implementing new hygiene protocols, he said. “How certain hotels are segmented against each other was another important factor,” he explained. “In Gauteng, South Africa, for example, four of our Accor Hotels have one owner, so the decision to open only one of these hotels served as an appropriate initial response.” Twenty-eight out of 67 Accor hotels across the African region continue to remain closed.

William McIntyre (Regional Director Southern Africa, Radisson) stated that the core of the group’s approach to dealing with the Covid crisis centred upon analysing the ‘cost of closure.’ “We subsequently made the decision that, apart from 4 hotels closed at owners request, we stayed open!” he said. “What this meant was that, in South Africa’s Lockdown Level 5, our properties were able to assist stranded foreign nationals and essential services personnel,” he said,

“We hosted call centre business who needed to ‘spread out their work force’ and, instead of setting up in cubicles, they worked in hotel rooms. We shut down certain sections and outlets of properties and changed our operating structures. We also utilised guest rooms differently by setting up way-lay stations, factory-type settings and corporate quarantine areas,” he explains. “And, in every circumstance, we managed to mitigate the costs of dormancy!” he said. “But it was hard!” he confesses. “We’ve learnt lessons and dealt with scary situations but, ultimately we’re happy we stayed open,” said McIntyre. “On the up side, we’ve cemented some new key relationships that will help take us into the future.”

According to Osbourne Majuru (Group CEO, Cresta Hotels) the reopening of Cresta hotels in various regions was tackled on a leveled, case-by-case basis. The group owns and leases properties in Zimbabwe, Zambia and Botswana. “All leisure properties, such as those at Victoria Falls, Chobe and the Okavango Delta, were closed from March until now,” he stated. “But scenarios differed from country to country and our operating team had to take various factors into account,” he said. “The recovery trajectory for hotels varies for individual properties, even those within the same market. For example, two hotels in the same city—one previously filled with domestic business and another with mainly inbound international demand—will see their occupancy and market mix rebound differently.

In areas where lockdowns weren’t that stringent (Zambia) we were able to keep certain wings of hotels open. In other areas, such as CBD’s or parliamentary areas (Harare, Zimbabwe), we opened sections earlier,” he said. “In Gaborone, Botswana, we saw no value in opening three properties at once, so we opened one that relies on local business.” Forty percent of the group’s property portfolio (and its leased properties) currently remain closed.

Euan McGlashan (Owner, Valor Hospitality Partners) emphasised the different approaches prevalent in different international regions, stating, “In the USA, our hotels almost never shut down. At its worst, hotels there were closed for something in the region of a week! ‘Staycation’ markets were running full capacity in the summer. On the other hand, the group’s UK portfolio was shut for 4 months (nearly 5) but has just opened, he remarked. Relevant to African markets, he gave 3 definitive criteria for reopening:
1. Government support (‘In the USA, govt. support effectively meant we could pay employees, taxes and mortgage’).

2. Cost of opening vs. closing.

3. Not being last to market to open. (‘Spier Hotel in SA remained online with food and beverage purchases’).

Green Shoots of Recovery – Rooted in Lessons –

“At Valor we’ve always known that culture is everything to us,” said McGlashan, “But this pandemic has just further cemented that fact,” he said. “We knew we simply couldn’t leave staff behind! Gaining profitability by cutting staff and leaving them unemployed is not the answer and we’ve tried to keep everyone with some form of income,” he stated.

“There are certainly some green shoots out there; movie crews and businesses are shortly returning to South Africa, for example. Guest sentiment and travel sentiment is that there is a pent-up demand for travel and we anticipate that by mid next year we’ll see a lot of activity in South Africa, in particular.”

Annandale believes the current crisis has brought about real tenacity and resilience in the hospitality industry. “Onomo’s processes and planning with regards to implementing new safety protocols, reopening hotels and maintaining operations has undoubtedly been a collective effort – from stakeholders, shareholders, employees and third-party suppliers,” she said “There’s been a real spirit of togetherness,” she says. “Service providers have stepped up, our employees (who have not always been on full pay), have also assisted us tremendously in keeping things going and thereby preserving jobs. ”

McIntyre expressed that one of the toughest aspects has been the financial and emotional wellbeing of employees and staff. “One of the hardest things is knowing that, at Radisson, we are working as hard as we can, adapting operations to the best of our ability, and knowing that there are still thousands of staff waiting to come back to work; waiting for unemployment benefits,” he said. “Aside, from this, the challenging nature of changing our operations so drastically and bargaining over centralized costs is another burden we had to overcome.” “But,” he said, “the dedication and effectiveness of our sales teams and staff was amazing and, ultimately, there are lots of heartwarming stories to come from this!” “We ultimately took a positive view on what was happening, took the decision to close away – and we just adapted! By the 1st October we’ll be fully open across the whole region.”

Majuru agreed that, for Cresta Hotels, the toughest aspects were dealing with human coping strategies and mental health issues. “These are never to be underestimated,” he said, “We’ve been working with the WHO who’ve brought in doctors and therapists to help staff. We’ve also addressed the stigma associated with Covid, especially in Africa.”

“As part of our reopening strategy we are integrating a process where we work to integrate staff back into the workplace. But from an operations point of view – will we go back to the staff to room ratios that we had? We don’t know! In many instances too, we found it easier for hotel staff to stay at the properties and therefore we went into salary negotiations around certain cash reserves.”

Annandale agreed that, along with the positives that have come from working together with external parties and stakeholders, Onomo will “do everything to provide an even better experience than pre-Covid, and do it with due diligence!” Together with the other panelists, she stressed the importance of continuing to create a welcoming environment for guests that centred around a safe yet familiar environment.”

In conclusion

“At HTI Consulting we continue to believe in the tourism potential in the African region and strongly encourage further support from governments and brand managers to allow owners to minimise further losses and support recovery” stated Troughton. “For the time being, the complete reopening of countries and tourism markets and the various possible scenarios remain very uncertain. Hotels need to continue with their reopening strategies and adapt to new markets and changing conditions – through product innovation, hygiene protocols and cost containment –
in order to survive this transition period.”

“African hotels can expect significant uncertainty during the transition period. Customers will need more flexibility in case situations change, and some may be fearful of committing to advance purchase rates with inflexible terms,” he said. “Whilst preparing for the comeback, industry professionals must not forget one fundamental rule that built their past success: knowing their guests’ concerns, adapting operational processes to new market requirements, and continually building competitive advantage around them,” he concluded.

Released by: Kirsten Hill On Behalf of: HTI Consulting

Continue Reading

Hospitality & Tourism

African Sunsets Travel: Digitizing high end luxury safari experiences

Published

on

African Sunsets Travel Founders, Dexter and Gladys Chikerema

According to a Google Travel  study, 74% of travelers plan their trips on the Internet, while only 13% still use travel agencies to arrange dream destinations around the world. The generation we find ourselves in has steadily been moving toward a technologically savvy environment. It is travelling and new technologies combined, however, that boggle their mind.

This joint interest has opened the door to a new context where social media, apps, blogs and adding value to the life of people play an important role in planning a trip. In the same breath, we realise that the pandemic we find ourselves in has given rise to an increase of digitization, saturating all industries and making it difficult for small businesses to peak through the noise. Everyone has to adapt their models to survive and produce compelling content to attract desired clients for future travels. 

Back in 2018, when Dexter and his wife Gladys took a leap of faith to start their own travel and tour company (African Sunsets Travel), the couple dug deep into their passion for Africa, travelling, hospitality and their love for serving people. They had no idea if their prosperous business would find its way in such innovative times. Born and bred in Zimbabwe and both being skilled tour operators with over 10 years of experience, they know and understand that building relationships with people has been fundamental in getting new clients.

Being plunged straight into the COVID-19 crisis, African Sunsets Travel (AST) has been determined to give their clients the best experience online by providing them with stories and virtual tours to keep them entertained during lockdown. Prospective clients can find their exciting stories and thrilling blog posts on their website.

“We are fighting the pandemic together with the world and we look forward to taking our clients on wonderful safari trips, once we’re over this hurdle.” They understand the value in digitizing their packages and adding valuable information that will educate and steer individuals away from panic and fear.

Also Read: A ‘second renaissance’ for African payments post COVID

For this start-up company, it meant refunding up to 60% of their tours and trips for the year and moving 20% of their tours to an uncertain 2021. They have learnt that their traditional way of advertising and promoting their tours moved straight to the bottom as the world started to panic. The most important commodity right now is not travelling but rather face masks and sanitizers (in essence, people’s health and lives). We have been jolted into preservation mode, be it wildlife or humankind; all life is important and it is part of our global mission to show that we, too, value life.

“As a developing company, we believe that it is imperative to place people over profit, to follow leadership and instead of aggressively promoting travelling right now, recognise the greater need to calm and inspire the online audience. This time of uncertainty has called for innovation and imaginative storytelling, the way we package, coupled with understanding that digitizing is of utmost importance in the climate we find ourselves.

“When we started out, we never had a big business in mind but this current situation really pushed us into thinking bigger and better. We have the skills and resources to take on the new digital space, even if it maybe as simple as having a professional website and blog.”

Today, at African Sunsets Travel (AST) they pride themselves in facilitating affordable, enjoyable and quality tours. Their knack to combine luxury, style, service and authenticity guarantees clients a unique,exhilarating and unforgettable experience that will make every heartbeat to the rhythm of an African drum.

Credit: Toni Erasmus

Visit: African Sunsets Travel

Continue Reading

Hospitality & Tourism

African Hotel pipeline resilient despite unprecedented challenges

Published

on

HTI Consulting CEO Wayne Troughtong

Acknowledged as one of the African continent’s leading hospitality investment experts, Wayne Troughton of HTI Consulting shared unique insights in the firm’s first ‘Virtual Hotel Club’ held in early July, a dynamic and informal Pan-African digital platform that saw 295 registrations across 15 countries.

Data was gathered from a survey that covered 14 regional and international operators active in the African hotel space (41 hotel brands and 219 projects currently under development). These included the likes of Hilton Worldwide, Marriot International, Radisson Hotel Group and Accor Hotels, amongst others.

Development sentiment largely positive

According to Troughton, whilst the African hospitality industry is facing unprecedented challenges and obstacles in light of the global pandemic, he noted that development sentiment remains optimistic amongst the majority(57%) of hotel owners as reported by operators on the continent.

“Despite closures and significant performance declines, long-term investment fundamentals for the Sub-Saharan region remain positive despite significant short to mid-term challenges currently impacting the sector,” he said.

“Of a total 219 hotel projects currently In Sub Saharan African pipeline a large proportion (68%) of these projects are proceeding as planned, with only 18% currently on hold for a limited period,and 13% on hold indefinitely.” he stated.

“Concerns amongst hotel owners are, of course, still apparent and, for several, a ‘wait and see’ approach relates to factors such as uncertainty around travel ban lifts in various markets, how to restore guest confidence, and the impact of Covid-19 on hotel valuations. However, the optimism displayed by many owners generally relates to understanding of the sector and adoption of a longer-term outlook,”he explained.

Outlook geared to opening doors

Despite the current environment, construction related businesses in several countries resumed activity as early as possible after lockdowns eased,commented Troughton.

“Encouragingly, this has resulted in 21 projects (representing 2946 hotel rooms in 15 African countries) still expected to open in 2020, with 52% of projects expecting short-term delays of 3 -6 months,” he said. “Longer term delays (9-12 mths or 12 mth+) are typically being seen on those projects that were in earlier (or planning) phases of development,” he stated.

“These delays can generally be attributed to uncertainty around how long travel lockdowns will continue. However, around 30% of projects under construction don’t expect COVID-19 to cause any delays to their ongoing development,” he said.

Hotel owners are clearly taking a long-term investment outlook and are expecting COVID-19 to be largely neutralised prior to their hotels opening. This relates particularly to those in the early stages of planning.

Angola – Luanda (Image by: Kirsten Hill)

Development pipeline remains healthy

Of the overall Sub Saharan Africa Development pipeline there are 219 branded hotels (representing 33 698 hotel rooms) across 38 markets.

“East Africa remains the region with the strongest hotel pipeline, followed by West and then Southern Africa. East Africa has 88 branded hotels currently in the pipeline, West Africa sees 84 branded hotels in its pipeline with Southern Africa sitting on 47 hotels,” stated Troughton.

Of the 21 hotels total projects expected to open doors in 2020, East Africa (40% of total supply), will see 1,134 rooms come on board, with the top cities being Antananarivo (22%), Dar es Salaam (20%) and Addis Ababa (20%).

West Africa (47% of total supply) sees 719 rooms planned to enter in 2020 across major cities including Accra (28%), Bamako (28%) and Cape Verde (24%).

Southern Africa (23% of total development pipeline) sees 963 rooms planned to enter in 2020, with South Africa – Johannesburg (71%) and Durban (21%) – seeing the predominance of activity, followed by Zambia.

Over the past three months HTI Consulting has engaged in numerous discussions with hotel owners who, Troughton states, have navigated different cycles during COVID-19 from survival (as hotels closed) to cost containment, defining hygiene safety protocols, staffing plans and ultimately, reopening strategies.

As several economies slowly start to open, so too have many hospitality businesses who are remaining positive and committed to the industry and demonstrating the determination necessary to over coming current adversities.         

Doing the deals

“Despite pressured economic environments and tough decisions, many hotel operators have, been able to successfully conclude and sign deals with owners during the lockdown period. A total of 15 new hotel deals were concluded by 7 operators in 8 countries, from the period March – June,” stated Troughton of HTI Consulting.

Feedback indicates these deals were close to fruition prior to the COVID crisis, with owners showing strong sentiment to continue with the projects. Further feedback from operators indicates these deals were also typically signed in primary African cities such as Abidjan, Accra, Lagos and Durban that boasted strong and diverse hospitality markets prior to the crisis. These locations are also likely to recover at a quicker rate than secondary nodes, believes Troughton. 

“Select operators who indicated that no deals were signed during this period pointed out that opportunities remain rife and that new enquiries are continuing to come through,” he said,

“It is anticipated that a lag will occur, with new owners typically being more cautious and awaiting to see how recovery unfolds,” he said. “Concerns have also been raised by owners around access to finance going forward as well as the willingness of the banks and financial institutions to fund hospitality projects at this point in time,” he continued.

“Whilst we haven’t seen any distressed sales at this point, with banks largely keeping hotels afloat, this may well change depending on the time frames we’re looking at to a return to ‘new normal’ as well as the potential resurgence of the virus in certain areas. The next 2 – 3 months will prove to be crucial, as many hospitality businesses do not have plans in place to ensure sustainability post this period.”

Opportunity sees operators doing it differently

“In several instances, feedback from large operators indicates a distinct shift towards conversions over greenfield development going forward, with a more flexible approach to the renovations and PIP costs.”

“Some operators are viewing this time as an opportunity to finalise forward planning during lockdown,” said Troughton “In several instances they have been able to take advantage of government support during this period in order to ensure they are able to streamline and accelerate internal approval processes, create more flexibility around brand stance, enhance their ability to pitch their products correctly to the local market and offer greater value and affordable experiences along with analysing fee structures over a select period.”

Also Read: Africa Rising: Why Project Managers Are Critical to Africa’s Future

“Whilst lockdowns have placed many hospitality businesses and investors in a stalemate position over the past few months, we’ve noticed a positive change over the past few weeks as more as more hospitality businesses resume activities and we see a significant uptick in the commissioning of hospitality advisory assignments,” noted Troughton.

Future Outlook

“It is reasonable to assume that a more cautious approach will be taken by hotel owners and investors in evaluating their investment strategy,” he said.

“Independent hotel owners mayindeed find it more difficult than the larger international brands to weather this current scenario. This too because branded hotels, and their new highly publicised hygiene protocols, may make for a more secure market and therefore allow them to see a more effective bounce-back and recovery.”

Hilton Addis Ababa (Image by: Kirsten Hill)

“Additionally those markets that are strongest in the area of domestic business travel (and then domestic leisure) should be amongst the first to recover.Indeed, focusing on the local market is what helped Asia recover from the SARS epidemic in the early 2000s.”

“For those owners and operators taking the the time to understand the changing markets we are facing, and willing to adapt to drive new demand, the medium to long-term outlook remains good,” stressed Troughton. “At HTI Consulting we continue to believe in the tourism potential in the region and strongly encourage further support from governments and brand managers to allow owners to minimise further losses and support recovery,”

“Despite current challenges and the overall uncertainty that trouble us all, there will be better times ahead and the travel market will eventually emerge stronger and more resilient. As governments slowly roll back travel restrictions and prepare to reopen society, the future winners are those that build a future based on a strong risk mitigation approach and display flexibility and innovation,” he concluded.

Released by: Kirsten Hill for HTI Consulting

Continue Reading

Ads

Most Viewed