NEWS
How hospitality brands can win in Africa post-Covid-19 As lockdowns are extended around the world, including in Italy, the United Kingdom, France, India and now South Africa, businesses are working hard on strategies to ensure they are ready to hit the ground running when these are lifted, even if only in a staged manner. The hospitality industry is among the sectors leading the field.
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t is essential for hospitality businesses to be ready to jumpstart operations as soon as it is safe to do so, warns Mark Havercroft, Minor Hotels regional director for Africa, if they are to have any hope of not only getting back to business as usual, but also of continuing with any pre-Covid-19 growth proposals. “We can hazard a guess that the hospitality industry, at full capacity at least, will be among the last to resume business,” he said. “In the interim, businesses throughout the industry must work on a clear strategy so they’re ready to take advantage of every possible opportunity to resuscitate their hard-earned enterprises post lockdown by wherever possible maintaining a state of readiness to resume operations.” Prior to the onset of Covid-19, Minor Hotels began expanding its footprint in Africa, with plans in motion for much more growth. The group already operates 11 hotels and 17 safari lodges on the continent with three more properties in progress. Mr Havercroft explained that Africa offers huge potential for growth in the hospitality industry, thanks to a burgeoning African business and leisure travel market with more and more people having the urge to travel “locally” rather than the traditional overseas trip. “While much of the world is overcrowded with hospitality developments, there is still significant room for growth and expansion across Africa; stunning locations and attractions ranging www.businesseventsafrica.com
from the exotic to the adventurist are in abundance. Last year alone, the African hospitality market attracted $1.8 billion in capital,” he revealed. “This can, in part, be attributed to the continent’s growing middle-class population – now more than 350 million people, and the consequent increase in potential travellers providing a bigger local market for the tourism industry.” Covid-19, however, Mr Havercroft said has brought the hospitality industry a whole set of novel challenges to face. The industry has all but ground to a halt globally, new construction on hold, swathes of cancellations and postponements being registered, and the promotion of travel and related bookings curtailed. There are even difficulties with driving long-term bookings, considering the uncertainty around when people will be able to travel again ‒ or when they will feel safe to do so. In a post-Covid-19 world, hospitality brands across the board will be vying for their slice of this new market of tentative travellers. Mr Havercroft’s view is that achieving success in this unknown realm will be heavily dependent on the levels of success businesses have achieved in existing markets.
Mark Havercroft, Minor Hotels regional director for Africa.
“Consumer confidence will be more important than ever as travellers step out into the world after this global crisis,” Mr Havercroft said. “Travellers will look for familiarity offering a sense of comfort, safety and reliability in their accommodation choices. An existing presence globally, along with an extensive record of customer satisfaction, bolsters trust.” Furthermore, Mr Havercroft proffers that the key to successfully gaining a larger stake in the African market will lie in providing a wide range of mid-market options and varying price points in order to appeal to that expanding group of middle-class business and leisure travellers from Africa. He is frank that many challenges lie ahead, and that when travel finally resumes there will be a frantic race to attract guests and success will require innovation and originality. “Ultimately the key to long-term victory in drawing clientele in lies in a strong brand reputation and delivering consistency and quality to keep people coming back”. Business Events Africa May 2020 3
