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Protea rebrand a ‘strategic move’

22 Jun 2016 - by Debbie Badham
Comments | 0

PROTEA Hotels has

rebranded to ‘Protea Hotels

by Marriott’ to engage SA’s

emerging middle-class, which

favours international brands,

says Nicholas Barenblatt,

group marketing manager.

The move is a strategic

next step in the continued

integration of Protea into

the Marriott stable, he

says, adding that, although

international hospitality

brands haven’t yet

established a significant

presence in South Africa,

this will change with the

emergence of a new middleclass

market that aspires to

international brands. “We’ve

seen examples of this with

Starbucks and Burger King.”

Other industry authorities

disagree and argue that cost

is still what matters most to

this segment.

Tshifhiwa Tshivhengwa,

ceo of Fedhasa, says while

the local middle-class have

been exploring different

international brands – and

that the introduction of more

international hotel brands to

SA has made an increasingly

competitive landscape –

when it comes to choice of

hotel brand, travellers are

still more influenced by what

they can afford. He says

international brands often

cater for high-end markets

and predicts that, because

of this, local brands in the

four- or five-star categories

will receive more competition

from international brands

than those in the lower

categories.

It is going to be tough for

any international brand to

break into the South African

market, says ceo of the

City Lodge Hotel Group,

Clifford Ross. “The market

is dominated by very strong

brands that have been in the

country for years and years.”

He says the middle-class is

still a market that is growing

in South Africa, and that

many people in this segment

don’t travel for leisure

purposes. Rather they tend

to travel for family functions,

such as weddings and

funerals. For this reason, he

says these travellers look for

value for money .

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