BON hotels ceo, Guy
Stehlik, has called on
South Africa’s overtraded
and marginally successful
home-grown hotel industry
to put its egos aside and to
consolidate in the face of
increased competition from big
international brands.
“There is not enough space
for all of us. If you are a
small/medium-size local
operator there is a good
chance that you are going
to become a whole lot less
relevant in the next couple of
years,” he told the Tourism,
Hotel Investment & Networking
Conference (THINC) Africa
2017 in Cape Town. “It’s going
to get a lot tougher if you are a
regional player, as international
hotel groups with considerable
resources and their multi-brand
approach enter the mid-market
hotel segment and start to
consolidate their positions
here,” he warned.
He said SA’s hotel industry
comprised 78 hotel groups
and 984 hotels and lodges,
more than half of which
were operated by City Lodge,
Marriott/Protea, Tsogo, Legacy
and Sun International. “The
rest of us are affectionately
known as ‘the rats and mice’
who are all fending each
other off, struggling along, all
doing more or less the same
stuff, with no game breakers,
very little differentiation; and
all achieving only marginal
financial success. “
He said the answer lay in
consolidation, which would
bring increased buying
power with corporates and
intermediaries, improved
commission structures,
greater opportunity to develop
direct relationships with
guests through loyalty and
reward programmes, greater
negotiating power with carrental
companies, airlines
and travel procurement
professionals, and BEE status
and transformation credibility.
“Let’s put our egos aside and
seriously consider this!
