With an ever-growing number of billionaires worldwide, is Southern Africa equipped to handle the needs of this highly discerning market? Sue van Winsen reports.
During the past two decades, the world has experienced a ‘billionaire boom’ with about 900 new billionaires created during this time. The 2015 Billionaires Report, released by UBS and PwC, showed that for the past five years there has been a shift in wealth creation from the US to Asia – and China in particular – with a new billionaire created almost every week in the first quarter of 2015.
A study into the travel behaviour of this market released by Airbus says the growing number of billionaires from emerging markets is relevant, as their travel desires differ substantially from those from more established markets. “While the media like to paint billionaires as exhibitionists, this is an inaccurate picture. Most are discreet individuals, although visible signs of wealth can be observed with some in Russia. Billionaires in Russia and China are much more traditional than those from the Middle East. This is a function of the countries being at an earlier stage of economic development,” says the report.
Despite being highly individual in nature, there are certain traits that seem fairly consistent to billionaires across country of origin. These show that they are “highly determined, invariably very smart and always service-orientated”.
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The Airbus study also found that billionaire travellers have four primary needs. Firstly, flexibility, as travel dates change regularly and their travel tends to be spontaneous. Privacy is also a priority, along with familiarity, as they tend to travel with personal staff and prefer an ‘unbroken lifestyle’ with the comforts of home. Finally, tailored experiences are key, as they expect travel to be adapted to their personalities, lifestyles and needs.
Ready for the rich
Southern Africa seems to be an obvious destination choice for the super wealthy – with several of the world’s most famous billionaires even going so far as to invest in lodges throughout the region, including Richard Branson, Paul Allen and Jochen Zeitz, to name a few.
Chris Anagnostellis, Director of An African Anthology, says he definitely believes Southern Africa is equipped to meet the needs of the super wealthy, with the region’s natural heritage being a huge draw card for this market. However, he believes this could still be developed further as there is a shortage of high-end quality product. This is illustrated by the significant price hikes recently introduced by some of Southern Africa’s most exclusive lodges – something they would not have done if the demand was not there, he says.
“The last few years have seen an increase in top-level offerings in Southern Africa with opportunities being seized in a buoyant market. The reality is that, in terms of accommodation, we have some brilliant product on offer and, with Southern Africa becoming a global player, I feel a lot has been learnt by broadening our offerings in line with the rest of the world,” says Anagnostellis. “But we still have some way to go when it comes to service and value for money. We get away with this by the mere fact that there is great demand for our natural heritage to be experienced.”
In terms of the offerings that most appeal to this market, Anagnostellis says the Okavango Delta is one of the top requests, along with Western Cape coastal and winelands experiences, the Victoria Falls, Rovos Rail and the Blue Train.
Trusted suppliers
US-based tour operator, Betty Jo Currie of Currie and Co. Travels Unlimited, says while in theory, Southern Africa is ready to cater for this market, there is an issue, with many people making promises but failing to deliver. She says it is essential that players in this market know who to work with to make things happen.
This sentiment was echoed by the Airbus billionaires report, which showed that this segment tended to rely heavily on individuals. The report states: “These trusted people have a dual role: First, to offload tasks and decision-making responsibilities from the billionaire. Secondly, depending on the length of time for which the billionaire has been wealthy and the confidence that they enjoy, as sounding boards for ideas. The number and position of favoured individuals tends to be closely correlated to the wealth stage.”
Currie adds that the type of experiences that tend to appeal to this market include helicopter trips, visits to meet people and foundations, and securing hard-to-get reservations at top establishments.
