randse afrikaanse universiteit - the University of Johannesburg ...

RANDSE AFRIKAANSE UNIVERSITEIT
DEPARTEMENT ONDERNEMINGSBESTUUR
NOVEMBER-EKSAMEN 2000
KURSUS: B.COM HONNEURS TYD: 3 UUR
VRAESTEL: TOERISMEBEMARKING PUNTE: 100
EKSAMINATORE: 1. PROF. J.A. BENNETT
2. DR. B.A. LUBBE (UP)
(HIERDIE VRAESTEL BESTAAN UIT 5 BLADSYE)
INSTRUKSIES:
1. BEANTWOORD AL DIE VRAE.
2. LEES DIE GEVALLESTUDIE DEEGLIK VOORDAT U DIE VRAE WAT DAAROP
VOLG BEANTWOORD.
3. NOMMER U VRAE KORREK EN DUIDELIK.
4. MAAK SEKER DAT AL U PERSOONLIKE BESONDERHEDE OP AL U
ANTWOORDBOEKE AANGEBRING IS.
LEADING FROM THE FRONT
Prof JA Bennett
© Copyright reserved
A HUMBLE BEGINNING
If Rohan Vos had paid too much attention to the
cynical remarks of a Financial Mail reporter back
in 1988 he might have stopped Rovos Rail in its
tracks. Read the opening paragraph of an article
about Rovos Rail in this highly respected
magazine: “Wealthy steam train buffs and others
who like rail travel are not yet falling over each
other to get seats on Rovos Rail’s steam train, due
to start operating in February next year … ” 1
In 1989 Rovos Rail became the first privately
owned train to operate on a regular basis on SA
Transport Services (Sats) tracks. In return for this
privilege Rovos Rail had to pay R30 per kilometer
traveled on Sats lines. A round trip of 1 000
kilometers would therefore cost the new company
a hefty R 30 000. Add to that the almost R7
million that had been spend on acquiring and
restoring the original train, and it becomes clear
that Rovos Rail would not show a profit for some
years to come. 2
1 Steaming in luxury. (1988, September 22).
Financial Mail, pp. 79-80.
2 Swanepoel, M. (1989, September 15). Dié rit
weelderiger as Blou Trein. Finansies & Tegniek,
p. 34.
Because the service idea was a new one, and
fairly expensive, the company experienced initial
resistance. Initial sales were very slow. But in less
than ten years Rovos Rail has managed to
overcome this resistance, and has earned a
reputation for uncompromising quality.
IN SEARCH OF AUTHENTICITY
The first Rovos Rail product was unique in the
sense that all the carriages and locomotives were
from the pre-1950 era, with one locomotive dating
back to 1893. In the early years Rohan Vos
traveled the length and breath of the country
hunting for, and persuading owners to sell pre-
1950 South African Railways coaches. Most of
these were in a dilapidated condition, with
collapsed ceilings and rotting wood.
Finding carriages and locomotives was one thing.
Transporting them to Witbank where they could be
restored was another. One of the carriages found
by Vos posed a unique logistical challenge: “It
was originally a holiday home in the mountains of
Machadodorp in the Eastern Transvaal. But about
20 years ago it was placed on a concrete base.
With trees having been planted round it in the
interim, getting the coach down to the nearest
railway line proved to be a huge logistical problem.
First of all we had to create a road, then the
vehicle that collected the 22-metre carriage had a
low bed, and was obviously very long, which
meant it couldn’t take corners on the farm roads.

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So we had a very interesting time bringing it 500
meters down to the railway line.” 3
Restoring the carriages posed a challenge of a
different kind. Most spares required for the
restoration work were unavailable, and had to be
made. For this reason it was decided to use wood
for the carriages instead of steel because the
former is easier to work with. Fortunately spares
are still available for the undercarriage and bogeys
which are made of steel. “But the electrics are a
problem. We have definitely run out of odds and
ends, and I don’t know what we’re going to do
about it yet” Vos admitted in an earlier interview. 4
THE ROVOS RAIL PRODUCT
Rovos Rail is marketed internationally as “The
most luxurious train in the world.” 5 The beautifully
restored trains (there are two of them) consist of
up to 21 coaches which can be drawn by either
steam, diesel or electric locomotives operating at
various stages of the journey. The Classic Pride
of Africa, boasting a 1940’s style, carries a
maximum of 68 passengers. This train is
dedicated to serving the route between Victoria
Falls, Pretoria, Cape Town and George/Knysna.
The original Edwardian Pride of Africa carries a
maximum of 46 passengers, and is mainly
dedicated to serving the Pretoria/Komatipoort
route. This train can also be chartered by
individuals or companies for private use. The
trains travel at a speed of 40 km/h, ensuring an
unhurried and relaxed atmosphere.
Facilities aboard the trains include luxurious
accommodation of an unmatched standard,
combining the opulence of pre-war travel with
subtle modern innovations. Each of the DeLuxe
(11 m 2 ) or Royal (16m 2 ) Suites has a twin or
double bed, a lounge area and a private en-suite
bathroom with hot water shower, hairdryer, shaver
point, toilet and basin. The bathrooms in
particular are large, and beautifully decorated.
The Royal Suites have a broad balcony from
which passengers can admire the scenery, and
are named after colourful Victorian characters
such as Cecil John Rhodes, Barney Barnato and
Alfred Beit, as well as Rohan Vos’s wife Anthea.
Each suite has a bar fridge, which is filed with an
assortment of drinks including a bottle of
champagne and a bowl of fruit. A folder with a
welcoming note from Rohan Vos, an itinerary,
3 Rohan Vos. (1993, March). Getaway, pp. 34-
38, 115.
4 Rohan Vos. (1993, March). Getaway, pp. 34-
38, 115.
5 Rovos Rail: Train Safaris. (1997). Promotional
brochure.
2
Rovos Rail postcards, writing paper and
envelopes, and a comment card are also placed in
every suite. Rovos Rail believes that small things
can make a big impression.
Breakfast, lunch and a formal dinner are served in
the charming Victorian atmosphere of the Dinning
Car. The very impressive Shangani dining car
boasts seven pairs of beautifully carved wooden
pillars, with arches flowing down the length of the
coach. Art Nouveau light fittings, ceiling fans,
draped curtains and colourful flower arrangements
compliment this. In keeping with tradition,
passengers are still expected to dress for dinner.
At the back of the train one finds yet another
surprise: the observation car. Enlarged windows
and a completely glassed back end with a small
balcony allows passengers the opportunity to
experience some of the most majestic views
South Africa has to offer. The observation car
seats 32 passengers.
Experienced staff, including laundry staff, kitchen
staff (2 chefs and 2-3 helpers per train), service
staff such as barmen and hostesses are
responsible for serving passengers during the trip.
Each hostess is responsible for 4-6 suites, while a
mechanic takes care of all the technical
requirements. A train manager takes
responsibility for the overall functioning of the
train, while the deputy manager is responsible for
the performance of the staff on the train. Each
employee is issued with the Rovos Rail uniform,
which not only makes them more identifiable to
passengers, but also create a professional image.
In keeping with the spirit of travel in bygone days,
there are no televisions or radios on board, and a
cellular phone is available for emergencies only.
Depending on the journey, the train may stop at
different places of special interest. In Kimberley
and Matjiesfontein passengers are transported in
minibuses to places of historic significance, while
game drives in fully equipped Land Rovers are
offered when passengers stay over at Londolozi, a
private game reserve in Mpumalanga. On the Dar
Es Salaam route organised tours to Zanzibar,
Nairobi, Mt Kilimanjaro, Ngorogoro Crater and the
Serengeti National Park are arranged.
ROUTES AND PRICE STRUCTURE
Rovos Rail started operating on the Pretoria-
Graskop route back in 1989. At the time fares
ranged between R5 544 and R7 784, including
GST. When asked about the high price, Joyce
Hayward, then marketing manager, explained:
“We have to charge that much to cover our heavy
overheads … And we’re not just offering a train

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trip. There are many extras included in the fare.” 6
Over the years Rovos Rail has expanded its
operations to include more routes. Once a year
Rovos Rail travels to Dar Es Salaam. The train
also travels regularly between Pretoria and
Victoria Falls in Zimbabwe.
The current routes, and the corresponding price,
per person sharing for the two classes, are shown
in the table below.
ROUTE DE LUXE ROYAL
Pretoria to Cape Town
Cape Town to Pretoria 4 795-00 6 595-00
Pretoria to Victoria Falls
Victoria Falls to Pretoria 5 595-00 7 595-00
Johannesburg City Tour, Lunch &
Pretoria City Tour, overnight
Pretoria hotel DBB 1 050-00 1 050-00
Pretoria to Komatipoort/Skukuza
Komatipoort/Skukuza to Pretoria 2 295-00 3 095-00
Cape Town to George
George to Cape Town 2 650-00 3 695-00
George to Knysna
Knysna to George 225-00 225-00
Cape Town to Dar Es Salaam
Dar Es Salaam to Cape Town $ 7 2000-00 $ 8 800-00
The price includes accommodation on the train,
three superb meals daily, all alcoholic and other
beverages, sightseeing excursions led by qualified
tour guides, entrance fees to places of interest, 24
hour full room service and bar facilities, and
Government tax.
ORGANISATIONAL STRUCTURE AND STAFF
CONSIDERATIONS
Rovos Rail employs approximately 160 people,
but it is envisaged that this will increase to about
200 in the near future. The staff is arranged into
three main departments:
Site management, which includes operations
management (stores, replenishments, buying)
and repair and maintenance services.
Hotel management, which is responsible for
the management and operations of the
Victoria Hotel in Pretoria, which is also owned
by Rohan Vos. The hotel serves as the
headquarters of Rovos Rail. It is also used as
reception area for passengers who board
trains departing from Pretoria.
Administration, which is subdivided into a
financial services and accounting section and
a sales and marketing section.
Unlike many tourism establishments, staff
turnover is generally low. Amongst some
6 Steaming in luxury. (1988, September 22).
Financial Mail, pp. 79-80.
3
categories of train staff, such as hostesses and
barmen, the turnover is slightly higher. These
positions are typically filled by younger people,
who generally work for 6 months to one year
before moving on to other jobs.
The company has no formal approach to staff
recruitment, but because of the nature of the
product; they seem to attract sufficient suitably
qualified staff. Rohan Vos takes full responsibility
for the appointment of staff, as Walter Lloyd, the
current sales and marketing manager explains
“… the company carries his name …the philosophy
and policy behind the whole company is that
people pay for the privilege to travel on a private
train … and all of those staff are actually his
personal employees … an extension of his
personality...” 7
When evaluating employees Rohan relies on an
one hour personal interview, which he likes to
think of as a friendly “chat” rather than a formal
interview. Physical appearance; including a
friendly smile from the heart, a professional
appearance; a good home upbringing, a caring
attitude, integrity, a willingness to serve others are
some of the qualities he looks for in an ideal
candidate. Formal training is not considered
essential.
There exists no formal training course for staff, but
upon joining the company they receive an
operations manual, setting out the functions to be
performed. This is supplemented with extensive
“on-the-job” training and a briefing by Rohan Vos
himself. In some jobs new employees will first
work under the guidance of more experienced
staff (the so-called twinning system), until they are
ready to work independently.
When briefing new staff members Rohan Vos
explains to the newcomers that the train is his
home and that they, regardless of gender, are his
“wives”. So when they invite guests to visit their
home, they must be treated hospitably. “So if
there is not a clean towel, a nice meal and a cold
drink, then we’re at fault. So it’s a logical
progression if you think in terms of inviting guests
into you’re home” Rohan explains with complete
conviction.
MARKETING ROVOS RAIL
In marketing Rovos Rail the company
concentrates on the travel trade, mainly tour
operators and wholesalers. The company
deliberately spends 5 percent of sales revenue on
marketing, which makes them very aggressive
7 Lloyd, W. (1997, March). Personal interview,
Pretoria.

KURSUS: B.COM HONNEURS
VAK: BEMARKING VAN DIENSTE
marketers since most tourism establishments
spend far less than that. This enables the
company to have in excess of five million
brochures in circulation worldwide at any one time.
Tour operators receive a 20 percent commission
on the bookings they make, provided they display
the train in their brochures. If not, they receive the
normal 15 percent commission.
In the past the company attended the World
Travel Market in London, the Indaba in Durban
and the ITB in Berlin. In 1997 the company will
also be attending the Africa Travel Market and the
American Travel Market.
To supplement the trade shows, Rovos Rail has
appointed representatives in New York, London,
Dusseldorf and Australia. These representatives
are paid a retainer. They do not make bookings,
but have to keep the name of Rovos Rail “in front
of the tour operators”. They also solve problems
on behalf of the company, and provide feedback
on trends in the market.
The unique nature of the product also ensures a
constant supply of publicity for the train. Travel
writers, journalists and television crews from all
over the world guarantee monthly exposure in the
international market at a nominal cost. Normally
Rovos Rail has to give away one or two nights on
the train to accommodate the visiting journalists.
In exchange for this they get millions of rands of
press coverage. This type of coverage is
generally considered more credible than
commercials paid for by the company, since it is
presented by an “independent” journalist.
Advertisements directed directly at prospective
tourists in magazines are rarely used. However,
when the Cape Town/Knysna route was
introduced advertisements were taken out in the
Getaway magazine. Getaway has the largest
national circulation average for titles falling within
similar income and education brackets with
audited monthly circulation figures of 89 797 in the
latter part of 1996. This makes Getaway the
leading magazine in specialist leisure titles in
South Africa. By placing adverts in Getaway the
company not only aimed to publicize the new
route, but also succeeded in making the travel
trade aware of the new product.
Rovos Rail also engages in limited personal
selling. Beatrice Thorson, who is situated in
Johannesburg, is, amongst others, responsible for
promoting the Rovos Rail product to the travel
trade and corporate clients. The latter charter the
train for conferences, product launches, sales
incentive schemes, farewell functions for
executives or to entertain overseas VIP’s. The
4
route may also be varied, whenever practical, to
accommodate the needs of the client.
When selling to the trade and corporate clients
Beatrice makes use of a video, which helps to
make the product “tangible”. The video is
combined with a professional sales presentation,
whereafter Beatrice answers any questions the
prospective client may have.
THE SECRET OF SUCCESS
In less that ten years Rovos Rail has proved that it
can hold its own with the best tourist attractions
and name trains in the world. Part of its success
can be ascribed to the fact that it is essentially a
small company. This means that decisions can be
made in minutes, while larger companies may
take days. Rohan Vos in particular does not shy
away from quick decisions, and often ends up
making important decisions in seconds.
In particular Rohan believes in good
administration, which includes keeping proper
financial records and constantly monitoring cash
flow. He personally inspects income and
expenditure twice weekly. He furthermore
believes in forecasting future turnover, and by
October every year he estimates the expected
turnover for the next year. Three monthly profit
targets are set, and these are adjusted monthly to
account for short-term fluctuations in expenditure
or sales.
Also contributing to the success of Rovos Rail is
its effective marketing and positioning. By
targeting a well defined market segment, the
company can better focus its marketing and
operations, thus managing to satisfy their
customer’s needs optimally. The positioning of
the product as “the best in its class” further adds
to its success. Heavy and sustained marketing to
the travel trade, thereby pushing the product
through the distribution channel, enable them to
achieve high occupancy levels, even under the
most trying market conditions.
There can be no doubt that the Rovos Rail product
is unique. In an era where plastics, instant
products, electronics and speed dominate, Rovos
Rail is surprisingly authentic, old fashioned, and
relaxed, yet comfortable, luxurious and original.
Rovos Rail is furthermore steered by a man with a
vision. A man that is ever present, a man with an
eye for detail, and one that is extremely
passionate about his work. The fact that he
named the four restored steam locomotives after
his children goes a long way to explain his
commitment to the company.

KURSUS: B.COM HONNEURS
VAK: BEMARKING VAN DIENSTE
VRAAG 1
Bespreek die rol van prys en die faktore wat dit beïnvloed met spesifieke verwysing na
Rovos Rail.
VRAAG 2
Hoe kan Rovos Rail verkoopspromosie gebruik in die bemarking van die trein?
VRAAG 3
5
(20)
(15)
Bespreek die rol van openbare betrekkinge (10) en brosjures (15) soos wat dit van
toepassing is op Rovos Rail.
VRAAG 4
(25)
Die bemarking van ‘n toerismeproduk soos Rovos Rail vereis dat spesifieke aandag
gegee moet word aan drie addisionele elemente van die bemarkingsmengsel, naamlik
mense, prosesse en fisiese getuienis van die diens. Bespreek hierdie drie elemente met
spesifieke verwysing na Rovos Rail. Maak aannames waar nodig.
VRAAG 5
(20)
Rovos Rail is primêr ‘n toeriste-aantreklikheid, maar bevat ook elemente van ‘n
akkommodasie- en vervoerverskaffer. Bespreek, in die lig hiervan, die strategiese
bemarkingstake van die bemarker deur, in tabelvorm, ‘n vergelyking te tref tussen die
strategiese take van verskaffers van vervoer, akkommodasie en aantreklikhede.
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(20)