Many international hotel chains are
flooding our continent to do business, find new opportunities in a different
market and grow. The introduction of these brands offers many customers and
travelers a diverse array of amazing hotel options. For the many already
existing local hotels, this move may seem detrimental to their business growth
and development. Many local hotel brands are now used to dominating
this under tapped market therefore facing competition from the international
brands who have an endless list of advantages: heavy financial backing,
advanced technology, superior products, the group chain effect and seasoned
marketing and management professionals. Understandably, the success of local
businesses is considered as being in grave danger when international brands
surface. The multi-million dollar question here is; does the introduction of
international hotel chains bring collapse or competition for the local hotel
businesses? Jovago assesses the various factors
involved.
The introduction of major
international hotel brands or chains like Hilton, Marriott, Kempinski and
Movenpick instantly causes a certain level of trembling among local brands;
most of which may not have the power to compete. However, with high technology
and exquisite decor, facilities and services; come high rates. Comparably, as
the international chains charge exorbitant rates in foreign currency, many
luxurious local brands provide an alternative for those who cannot afford the
luxury of spending several thousands of dollars on a night’s stay. This is a
great benefit for the local brands as many local travelers as well as
middle to low income international travelers will prefer to stay in a good
hotel with an affordable price, rather than stay in a fancy hotel for a very
high price. The local businesses win here!
What this also means is that, very
high standards are set by these international brands and the local brands are
obliged to step up a gear or two to be able to compete at the highest level.
Where there is no competition, many of the bigger local entities enjoy monopoly
over the relatively smaller hotels in terms of size, quality of service
and facilities. Standards are not really adhered to the fullest and everything
seems okay. Immediately there is an introduction of one or two international brands,
standards are set very high and the local brands need to upgrade to match up
and be able to compete for the very few valuable customers. Facilities are then
upgraded to meet modern international technological standards. Staff are also
trained to become professionally equipped to handle international clients to
their satisfaction. This is good for the industry in general.
Another very important aspect of this
battle is marketing. If it is possible for international brands to enter the
local market, why isn’t it possible for local brands to attract international
customers? Many local brands tend to learn new marketing strategies so as to
aid them market beyond this continent and attract international travelers as
well. These travelers may be used to the international brands and may be open
to trying out local hotels when they intend to travel to a particular country.
Through OTA’s like Jovago, travelers are able to access a wide
range of local hotels and compare with what they already
know to be able to make informed choices. This also gives opportunities for
some of the very best local hotels to partner with the international chains and
enjoy the unending benefits that come with it.
Finally, instead of seeing the influx
of international chains as a recipe for collapse, local brands must just see
this as a ‘’wake up call’’. It is time to upgrade their facilities, train staff
and adhere to standards. This only makes them competitive and at least in
business until they are ready for a total take-over, partnership or massive
upgrade. With all these factors, the hotel industry in Africa will only benefit from the introduction
of international brands. Local brands will not collapse if they maintain the
right practices and learn rapidly. The future is only bright.
Credit : Jovago
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