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Nicky Fitzgerald co-founded Halcyon Hotels and Safari Lodges for AndBeyond. She and her husband Steve opened Angama Mara in Kenya in 2015.
After 40 years of welcoming travelers to the beautiful deserts of sub-Saharan Africa and India, I retired from the business at the end of last month. During those decades I learned a lot building, opening, operating and marketing 60 high-end safari lodges, the last one being Angama Mara in Kenya’s Maasai Mara.
Talking about partnership as the foundation of business has become almost neglected. Although I testify that it is true, it must be done in the right spirit. Former South African President Nelson Mandela understood and accepted this UbuntuIt is an ancient African philosophy that simply means “I am because of you, you are because of me, we belong to each other”.
Using this as a framework, I urge my colleagues in the luxury adventure travel industry, whether they be consultants or properties, to take a step back and reevaluate what it means to “be a fair partner.”
I am proud of the legacy I leave. A lot has changed in the safari business over the past four decades, but one has to ask: is enough?
In the early 1980s, the back story of the partnership between the lodges and the travel business went something like this. Getting to these remote places was a challenge. Communications were by telex or fax; Putting together trips in multiple destinations and countries was confusing; And travelers depend on their travel agent for information on where to go, choices on offer, and potential bumps in the road.
To address this, the market is divided into four distinct sectors: the top travel agent, the outbound destination wholesaler, the inbound destination specialist and finally, at the bottom of the chain, the safari lodge. To make sure everyone in the chain gets what they deserve, Lodges offer a 30% margin or more off the shelf price. We all needed each other, and the partnerships were strong.
21st century change
As we move into the 21st century, it begins to unfold. This happened for two reasons: lodges simply couldn’t monetize these steep margins (plus lodges pay 14 percent to 16 percent value-added tax and tourism tax), and the World Wide Web simply opened the door. Accessible information.
The accepted commission structure for luxury hotels globally is 10%, and most exclude all meals, drinks and guided safaris up to 12 hours a day. As the years went by, partnerships became tighter, lodges were looking to trim margins and the travel distribution chain was putting pressure on them to think.
The battle of “Who owns the guest” was also held. Frankly, this is a ridiculous argument as we all know that nobody is the stranger. Our guests will be disappointed to think they are “owned” by any company. Forbidden threats were made against any Lodge considering its “going straight.” But this left the lodge owners committed to owning market access by launching slick websites, getting media coverage independent of the travel business and opening their own boutique travel desk.
As the market split with travel agents becoming African experts and African wholesalers becoming retailers, I heard lodges from wholesaler-turned-retailers saying, “I can’t do business with you for 25 percent to 30 percent less.” Similarly, from 15% to 25% for retailers. What happened to 10% being a fair margin for B2C fully inclusive marketing? When an African wholesaler told him that X Lodge gave him 40% (so I’ll take that into account) I responded by asking what the shelf life of the property was? $300 was the answer. At the time, my price was $1,200, and I offered 30%. “Bank percentage points or dollars?” I asked. “It’s not,” was the answer.
Another quote I hope to never hear again as a lodge owner is, “We want to sell Africa because we make so much money on these trips.
Like all industries, we need each other. Nelson Mandela had it right: Ubuntu. My appeal to travel partners selling Africa is to strive to find fair solutions for both parties to create a strong, open and honest partnership. Imagine the good that flows from that for the agents, properties, communities, habitats and wildlife. A less fragmented and more cost-effective partnership allows properties to reinvest in the guest experience and pay for the right to be there. Only if the Conservancy can prove that it is the most profitable land use will these wilderness areas exist. What is left to sell if the lodges fail to survive?
As I retire from this amazing industry, I am grateful to Travel Weekly for giving me this opportunity to connect with our travel partners, strengthen partnerships with beloved properties, and work hand-in-hand in sending travelers to Africa and beyond. Thank you for all your support in encouraging our customers to visit where every tourist dollar makes a huge impact.
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