Another Hotel on Route 62: Room for a Niche?

Author :

Professor Chris van der Hoven & Stephanie Townsend

Pages :

26 pages

Product Type :

Case

Reference # :

WBS-2018-3

Teaching Note :

not available

Institute:

Wits Business School - University of the Witwatersrand

Setting:

South Africa

Year:

2017

Keywords:

Strategy

Summary/Abstract:

In late 2017, Wits Business School MBA student, Bulelani Moyo, pondered all the information he had gathered for a proposal he was considering putting to Jeff Miller, CEO of South African venture capital company Grovest, for investing in a new and innovative hotel concept in three locations on Cape Route 62 (Route 62), a tourist route covering parts of the Western Cape and Eastern Cape. He believed that there could be scope for a disruptive hotel model on that route. However, for such a hotel to be viable, it was crucial to target the right audience. Moyo was contemplating whether there were opportunities in four customer segments: the “ageing biker”, the “millennial adventurer”, the “foreign road-tripper” and the “travelling salesman”. As he read through his research, he wondered whether he had enough to be able to make a convincing case for any of these markets to Miller.