The Nordic market is characterised by big spenders and frequent travellers, making it an important source market for Southern Africa. Sue van Winsen speaks to Nordic market specialists to find out what these travellers really want in a holiday destination.
Despite being sparsely populated, collectively the Nordic market, comprising Denmark, Finland, Iceland, Norway and Sweden, is the third-largest outbound travel market in Europe. Travellers from this region spend upwards of US$20bn per year on travel, placing them amongst the highest spenders in the world, ahead of both Germany and the UK. Research has also shown that Nordic travellers spend 90% more than the average European tourist on food, accommodation and attractions, making them a lucrative market for Southern Africa.
In terms of their booking behaviour, despite being connected and up-to-date with travel technology, they are still likely to use tour operators and travel agents to book travel to Southern Africa as a result of the complexities and possible issues involved in booking a long-haul destination, says Carlos Leite-Ferraz, Owner of Credo Travel Marketing in Finland.
GM of Oslo-based Destination Africa, Rune Engstrᴓm, agrees and says his company works solely with agents, especially for land arrangements. “While many people book their air tickets online, South Africa is far away and most prefer to have the security of dealing with an agent.”
A study compiled by Denmark-based marketing agency, Related, investigated the travel habits of the Nordic outbound travel market and ranked travel destinations according to their travel image. It surveyed 2 300 people over the age of 18 in four Nordic countries on their views about 89 different travel destinations. South Africa fell almost exactly halfway in terms of its travel image, ranking 45th out of the 89 countries. The only Southern African countries that ranked higher than SA were the Indian Ocean Island destinations of Madagascar (30), Mauritius (42) and Seychelles (44).
The study also found that most Nordic travellers first consider destinations that offer a warm climate. Other factors that influence destination choice included cultural experiences, all-inclusive packages and good deals. The study also emphasised that Nordic travellers want cleanliness, active holidays, shopping, restaurants and unique travel experiences.
In terms of the core segments, families with children are one of the most important demographic markets, particularly for Southern Africa. According to the Related study, family groups tend to select destinations that are child-friendly, safe and allow for shared and active family experiences. Often, this market books four- or five-star, all-inclusive packages. Empty nesters are the other major market for Southern Africa, and these travellers tend to be over the age of 45 with no children living at home. They are often wealthy and take longer holidays, seeking out unusual experiences and active trips.
Rung Button, Sales and Operations Manager for Inspirations ITT, says Nordic travellers tend to visit only one country at a time, spending between eight and 14 days there, with the peak season running in their winter, from October through to April. She adds that about 80% of requests are for four-star hotels and lodges and says itineraries featuring beach, sun and time to relax are the most popular.
Leite-Ferraz says South Africa’s neighbouring destinations, including Botswana, Namibia, Mozambique and Vic Falls, are also popular add-ons but this usually depends on whether the traveller has been to South Africa before. He adds that the classic mix is usually Cape Town, wine, safari and an element of culture. “Clients are increasingly interested in what travel products are doing in their communities,” he adds.
Engstrᴓm says the itineraries most popular with first-time visitors to Southern Africa tend to combine nature, history and, of course, sunshine. One of the operator’s most popular itineraries includes tours around Cape Town, wine tasting in Robertson, historical experiences in Mossel Bay and nature-focused activities at Indalu, Panthera and Buffelsdrift.
Despite the Nordic interest in adventure and new experiences, pick up in terms of self-drive holidays remains slow. Tim Bouwers, MD of Bobo Campers, says Nordic travellers account for only a small proportion of his business. He says he is not entirely sure why this is the case but suggests that perhaps concerns about driving on the opposite side of the road, along with insufficient promotion of Southern Africa in the region, could be factors influencing their reluctance to opt for motorhome touring.
In terms of driving future growth out of the Nordic markets, Derek Houston, Owner of Houston Travel Marketing Services, says that attending workshops is key, along with the various trade fairs in Nordic countries, including Mattka in Finland, TUR in Sweden and ReiseLiv in Norway.
Button says she isn’t sure that the Nordic markets can be grown much more without the addition of direct flights. “We also need one or more beach-type resorts north of Durban, where the climate is most suitable, in order to grow the Nordic market considerably.”
