THE LAST WORD

Dual pricing in the local tourism space

Some operators within the local travel and tourism space have been charging locals less than foreign nationals for their products.

By Jerry Mabena, chief executive officer of Motsamayi Tourism Group.

In September 2020, the then-Minister of Tourism, Mmamoloko KubayiNgubane, encouraged operators in the sector to consider a two-tier pricing model in order to encourage domestic travel.

The discussion has resurfaced, fuelled by reports that Robben Island charges adult foreign nationals 40 per cent more than adult South Africans.

In the past two years, the sector had to drop prices to encourage domestic travellers to use and try out our local products. This has been well received to such an extent that in December 2021, some parts of South Africa saw their occupancies reaching levels not seen since the pandemic began. This happened in spite of an absence of international visitors.

I firmly believe that keeping these prices makes it more affordable for locals to try new tourism products and support the industry.

The conversation has involved interesting views from stakeholders in the trade, one of which is Tshepo Matlou, head of marketing and communications at Jurni, a localised online travel and tourism platform. The platform offers stays in localised and previously disadvantaged areas – including B&Bs and small guest houses – to a global online market.

Mr Matlou states that other avenues of stimulating local travel should also be considered, including improved use of technology in marketing local travel and tourism offerings.

“The pandemic fast-tracked our lives digitally, changing the way people search, shop, work and play. Technology will become even more important in the way that travel is marketed, because young people rely on technology to find, book and pay for their stays. Travel SMMEs that want to succeed will therefore have to adapt or be left behind,” he added.

The pandemic has introduced new techniques, like dual pricing, and a more proactive approach to keep the industry afloat. These will impact how local operators market their offerings, going forward.

While the pandemic has ravaged the tourism industry, operators should carefully consider how they market their offerings going into the future, Mr Matlou advised. Actions like dual pricing could have less desirable effects in the long run. Instead, proactive approaches like impactful marketing to raise tourism SMMEs’ visibility to potential travellers would be a more sustainable way to keep the industry afloat.

Who is Jerry Mabena?

Jerry Mabena holds a B Com degree in Industrial Psychology and Economics from Rhodes University. He is the chief executive officer of Thebe Services Division, where he is responsible for the integration and growth of the Thebe Investment Corporation’s investment in the tourism, financial services and energy services industries. Before joining Thebe in 2011, he served as chief executive officer of Kagiso Property Holdings. He has experience in advertising, marketing and business management. He serves as a director of Motsamayi Tourism Group (previously called Thebe Tourism Group (Pty) Limited). He also holds a diploma in project management from Damelin and a certificate programme in accounting and finance from Wits Business School.