South African corporates are increasingly choosing local hotel chains over international brands, as travel managers question whether star ratings offer a consistent measure of quality across markets.
FCM’s latest Insights Report found that the most consistent properties for corporate travel in Africa were local chains.
Mummy Mafojane, GM of FCM South Africa, says international brands offer familiarity, but that it does not always translate into a consistent experience for business travellers.
“International brands bring consistency, but consistency built for a global template doesn’t always translate well into a specific city with its own business culture. Local operators tend to build around that reality from the start, rather than adapting a standard that was designed somewhere else,” says Mafojane.
Local hotel groups have developed their properties around the realities of their own markets.
“A generator, a borehole and a driver who actually arrives are standard rather than selling points. Because of this, several of our top destinations are local chains, and traveller feedback confirms it trip after trip.”
Domestic growth
Mafojane says South Africa has one of the most established markets, with groups such as ANEW, Cresta, City Lodge Hotel Group, Southern Sun, Peermont and Capital Hotels forming an important part of FCM’s domestic corporate programme.
“ANEW is a good example; a homegrown group that's grown steadily since 2017 and now covers close to twenty properties, including several secondary cities that international brands haven't prioritised,” she says.
Beyond South Africa, local groups in West and East Africa are also emerging as preferred options.
“We're seeing quite a few well-run local groups doing the same thing in West and East Africa; building a product specifically for the business traveller in their own region rather than importing one,” says Mafojane.
She says West Africa is seeing the fastest growth in local hotel groups, while East Africa has several established operators, particularly in Kenya, Tanzania, Uganda and Rwanda, although fewer compete with international brands at scale.
Traveller confidence
Despite the growing use of local hotel chains in corporate travel programmes, traveller perceptions may take longer to shift. In a recent Travel News poll, more than 75% of respondents said corporate travellers did not prefer local hotel chains over international brands.
Mafojane says travel planners can help build confidence in lesser-known hotel brands by verifying their standards and services.
“Buy-in isn't really about persuading someone to like an unfamiliar name. It's about telling them exactly what backs the booking: that the generator covers their room, that the Wi-Fi has been tested, that there's someone at the property we can call directly if something goes wrong.”
She says once travellers understand that the verification is real and specific, the hotel’s brand becomes less important.
“It’s part of why we’re advising clients to write travel policy around hotel brand types and verified standards, rather than around star ratings that mean something different in every market.”
