Below is a response to a column by Reinhardt Mecklenburg.

Dear Reinhardt,

With your question in your recent article: “What the heck are non-traditional electronic third party intermediaries (aka OTAs or Online Travel Agents) doing at a tourism expo?” it seems you are not wanting the inevitable future to arrive and are ignoring the fact that it has already arrived. With this question you are furthermore proposing that, at any cost, we should all join you in protecting the so called tourism traditions practised by what you romantically call a tourism family.

I would suggest you might want to ask yourself why Expedia and other such digital entities have become so popular or, as you put it: “have obtained enormous power”. My opinion is that OTAs have essentially achieved their business success by embracing and managing the inevitable digital trend and are thus very effectively serving the consumer along with addressing the needs of their partners, the principals in the tourism family such as hotels, lodges, airlines, tour operators and car-rental companies. I therefore would like to respond to your article in depth and with detailed insights in two parts.

In support of this opinion, let’s look at the facts:

Documented statistics confirm that 65% of potential travellers start their journey whilst being online researching and seeking inspiration; 78% of potential travellers use the Internet for planning their itinerary; 60% use search engines followed by 48% using hotel and other principals’ websites; 40% use OTAs for their travel planning. At the same time, 67% of this activity is done from mobile devices such as smartphones and tablets. When it comes to idea gathering or inspiration, some 90% of potential travellers use the Internet, whilst only 10% make use of the traditional travel agent. (Source: https://storage.googleapis.com/think/docs/2014-travelers-roadto-decision_research_studies.pdf)

In short, when it comes to idea gathering, research and inspiration, 10% of travellers are making use of the traditional tourism channel whilst 90% use the Internet. Obviously this number is a bit skewed when it comes to the actual booking process as the traditional channel still processes a lot of bookings. Simply put, there are two reasons for this. One is that many of these bookings are done following the traditional route as the consumer in question, mostly from a declining ‘older’ age group in the market, finds it convenient and is more comfortable doing so. However, above statistics confirm that many of these did research via the Internet and then followed this traditional route knowing what he/she wants. More importantly, one needs to also focus on the second reason, which is also definitely applicable to the growing ‘younger’ market. This is because what the consumer wants is not effectively or efficiently available online, despite us all doing business in this digital world we live in. This consumer then reluctantly follows the traditional route or, at the industry’s peril, decides to book the product which is adequately represented.

Today’s potential traveller, the ‘younger’ growing market, gets inspired, does his or her research and planning and decides what to book and then books and pays, all on the Internet, by using resources from Google, OTAs and meta engines, social media and review platforms.

Let’s now look at this consumer or world traveller in a Namibian context. As we all know, Namibia is not usually a ‘one stop destination’ such as, for example, Cape Town can be or Mauritius always is. Most travellers to Namibia see it as an ‘itinerary or touring destination’ and, as such, it basically attracts, or should attract, both the traditional traveller who is more comfortable with an escorted tour or pre-planned set itinerary and the growing more independent (possibly non-traditional and younger) traveller who wants to do his/her own thing. All the above-mentioned principals in the tourism family, such as hotels, lodges, airlines, tour operators and car-rental companies should realise, and many do, that any independent individual traveller in today’s digital world can and definitely does, with a click of the mouse, research and book whilst comparing facilities, services and prices and even paying for a flight to Namibia, a car rental along with any number of hotels or lodges. Yes, some of these consumers find it too laborious to process all required bookings and then resort to the more traditional channels involving travel agents, tour operators and their DMCs. It is also true that many find it frustrating that the products they want are not adequately available online via the Internet and then decide to satisfy their needs, wants and desires with products that readily are.

The traditional traveller who is more comfortable with an escorted non-self-drive tour could again do his/her research and planning and decide what to book all on the Internet and then choose which tour operator/DMC tour product to book via the Internet (if the TO/DMC is operating in today’s digital world) or via the traditional travel agent route.

In other words, it is the consumer’s choice as to how he/she wants to BUY and it is each member of the tourism industry who must choose how to fulfil the consumer’s choice. The best strategy is to follow the route the consumer wants and, if that is both, either the traditional and/or the so called ‘electronic (aka OTA) route’ then it is surely a wise business decision to do both rather than ‘kicking OTAs out’ and not welcoming them into your so-called tourism family.

Now I suggest we look at Namibia’s performance in servicing this consumer or world traveller:

Numerous world-wide market research projects will confirm that of the two above-mentioned segments, the more traditional escorted tour market is declining and that as the world becomes ‘a smaller place’ and new generations replace the older ones, it is the non-traditional independent segment that is growing by leaps and bounds in the rest of the world. Just see the global success of AirBnB, simply because it is fulfilling a consumer’s demand. This is also the segment that has grown up in and is very comfortable with the digital world. A world in which the OTAs have taken the lead and have an important role to play. It is those industry members insisting to remain with the traditional tourism practices who are losing ground and, as a result, will lose market share.

Namibia had its tourism peak in 2008. From 2009 to 2012 Namibia tourism was on a constant decline. In 2013 and 2014 the market stabilised slightly without growing and then experienced another decline in 2015. Some in the tourism industry in Namibia have explanations that sound more like excuses rather than reasons, while others view the situation with honest and constructive concern realising there are many other reasons which one cannot address in this article if we are to remain on topic.

However, it seems in your article that you not only support but also wish, at any cost, to protect the traditional tourism family and its value chain from the DMC via the Wholesale Tour Operator and the Retail Travel Agent to the Consumer, stating that it is “the real” and ONLY relevant tourism industry.

So, let’s look into the statistics and study what are the market dynamics in Namibia in relation to this consumer or world traveller: With the decline in the traditional escorted tour type tourism into Namibia, we end up welcoming some 250,000-300,000 (+/-) real tourists per year, after taking out business and friends and family-related arrivals from our neighbouring countries. A number Cape Town runs in one month, just to put this into perspective. These 250,000 Namibian tourists have a choice of +/- 1,500 accommodation establishments. Taking into account that a tourist stays on average some 17 nights, it results in some five million potential bed nights. If you then spread this across the 1,500 registered accommodation providers you get an annualised average occupancy of some 30%.

Every hotelier knows what that means. (Source: Ministry of Environment and Tourism Statistical Reports) Let’s look more closely at this traditional tourist visiting Namibia: Looking into the demographics of these 250,000 travellers, one finds the majority are in the age group of 50+ and are very often returning travellers who have visited Namibia for many years.

This in itself is positive but one must ask oneself how does one grow the market realising that in the last five years we have lost dramatically in the relevant age group of 30 to 49 years? This is the age group of the new generation which should be replacing the older ones! Here we should all be asking ourselves Why? Could it be that by sticking to and protecting traditional tourism marketing practices the tourism family is not reaching them effectively? Maybe the traditional practices and offerings do not match or meet their needs, wants and desires. Maybe by rigidly sticking ONLY to the traditional practices instead of following both the traditional and NEW or non-traditional methods in this ever- and fast-changing industry is the way to go. This to me seems a smarter strategy and one that is consumer-centric, ensuring we address his/her needs, wants and desires rather than ostracising OTAs and protecting the ‘old way’ of doing things.

When one studies the status of Namibia’s digital presence in the international market place, and applies international bench-marking, one finds at least 9 out of 10 websites are not up to standard and even more are not at all mobile or tablet ready, despite confirmation that 67% of world travellers use this route to research and book. This makes it difficult for the potential traveller to even research what Namibia has to offer. It is even more difficult to plan, book and pay for what one wants.

Book and pay also means BUY and this is what needs to be focused on. International benchmarking is also important as the tourists and travellers we are talking about are mainly international and have the entire world to choose from when researching and planning a vacation.

For years now marketers have been preaching about instant gratification, and in today’s world the growing segment of consumers we need to a target don’t like writing emails or sending enquiries and wait to see if the respective lodge replies in a couple of days. We also need to honestly evaluate how well and how fast we respond to such email enquiries.. Instant gratification is the keyword. The decision to buy is taken and then the traveller follows a simple click to book and pay. Market research confirms that these are the needs, wants and desires of our consumers.

We, in a dynamic tourism industry need to respond to these rather than, at all cost, protect the traditional practices or ‘the old boys’ club’.

Part two of my response is following.