TOURVEST DESTINATION MANAGEMENT: Leading Tourism Business Embraces Digital Transformation

Africa offers an unparalleled diversity of cultures, landscapes, and experiences. Nowhere else can travellers find such a wide variety of encounters, which is why the continent has been a popular tourism destination for decades. However, the Covid-19 pandemic in 2020 brought tourism to a sudden halt, devastating economies reliant on the industry. Countries like South Africa, Egypt, Morocco, and Kenya were hit particularly hard.

Tourvest Destination Management (TDM), a leading travel management company known for its commitment to creating uniquely African travel experiences, was significantly impacted. In 2018, TDM was thriving, expanding into new markets and seeing growing popularity for its brands. However, the pandemic was a major setback, cutting the company’s workforce by half.

Despite the challenges, CEO Martin Wiest reflects on the company’s resilience: “Those 2.5 years were disastrous, but we have recovered well,” he says. TDM survived by making strategic investments during the pandemic that helped position the business for long-term sustainability.

POST PANDEMIC SUCCESS

By refocusing on digital tools, expanding into new regions, and elevating service delivery to new levels of excellence, TDM is once again thriving. In fact, 2024 has been the company’s best year to date, with turnover and profitability surpassing pre-pandemic levels.

Before the pandemic, TDM concentrated its efforts in South Africa, which served as a key gateway for tourism in Africa. However, since then, the company has expanded significantly into East Africa, helping it reach new heights. “We now have a very broad strategy,” says Wiest.

“Our East African operations are materially bigger than they used to be,” Wiest explains. “We are present in three countries, with six offices. We are also busy opening a new office in Rwanda, and we are considering a move into Ethiopia.”

The company is finalising a startup venture in Rwanda, adding to its portfolio, which already includes the UK and Ireland, where sports tourism is an important business segment. Looking further afield, TDM has its sights set on South America, where it is currently pursuing new developments.

Post-pandemic, the tourism market has changed, with travellers now seeking more authentic, immersive experiences. Wiest notes that today’s travellers demand more experiential holidays than they did in 2019. “Back then, it was about consumption. Now you have to add much more to make it an experience. Maybe it’s because people were locked up for so long,” he says.

As TDM continues to expand its presence in South America, this need for experiential travel is shaping its approach.

OFF THE BEATEN TRACK

One of the key brands helping TDM meet the demand for immersive travel is Drifters, a tourism experience that uses purpose-built vehicles to take travellers deep into their destinations. “Drifters allows us to globalise,” Wiest explains. The company plans to launch Drifters in Patagonia, Argentina, by early 2025, with trucks currently being built in Brazil.

Drifters offers something unique: an off-the-beaten-path adventure that takes travellers into the heart of their destination, offering an experience unlike any other. “Demand for the typical overland, backpacker trip has waned,” says Wiest. “We’ve upgraded the product and built purpose-made touring vehicles. We’re rolling them out in East Africa while consolidating them in southern Africa, and all signs point to great success.”

Drifters also enables TDM to establish a presence in locations with underdeveloped tourism infrastructure. Wiest cites Ghana as an example: “There are amazing sights and incredible game reserves, but they only have 15 or 20 beds, so you can’t use it as a tourism destination without mobile solutions. That’s where Drifters comes in.”

EMBRACING DIGITAL TRANSFORMATION

As TDM expands into new business lines and geographies, efficient processes are essential. The company’s strength lies in its ability to adapt, and digital transformation has become a crucial part of its strategy. “We compete with online travel agents (OTAs) and bed banks, which disintermediate us at both consumer and customer levels,” Wiest says.

With 75% of TDM’s costs attributed to manpower, the company is striving to become more efficient through digitalisation. “The more you can do digitally, the cheaper you can operate, and in today’s world, the lowest-cost producer wins,” says Wiest.

TDM has introduced various online tools, booking systems, and AI-powered integrations to increase volume, improve quality, and maintain efficiency. These digital advancements not only help with revenue generation but also enhance quality assurance.

“To compete with OTAs, we needed an African tool that delivers African content with the right speed and technology, allowing customers to interact with us in real time,” Wiest explains. TDM accelerated its digital transformation during the pandemic, significantly improving its digital presence in established markets like South Africa and Namibia.

Although TDM is confident in its digital capabilities, Wiest emphasises that technology will not replace the human touch in areas where digital competitors have less understanding. For instance, in Kenya, organising a world-class self-drive holiday cannot be accomplished with an OTA alone.

TDM’s strategy combines digital efficiency with local expertise, particularly in markets like Brazil, where the company is setting up its own distribution and reservation offices. “We see the future in creating our own distribution channels,” Wiest says. “Our first office is opening in São Paulo, and we’ll use the lessons learned there to expand into other markets where we currently have little market share.”

As the tourism industry becomes increasingly competitive, TDM refuses to rely solely on price. Instead, the company is focusing on enhancing its capabilities and geographic footprint. During the pandemic, TDM rebranded and realigned its two core brands—Sense of Africa and GoVacation Africa—further strengthening its brand equity.

Wiest explains that TDM thrives in complex travel environments. “The more complex a destination, the more value we have. That gives us more purpose and sustainability.” In more commoditised markets, like South Africa and Namibia, the company is driving digital transformation to maintain its competitive edge.

TDM’s commitment to digital excellence and service quality has positioned it as a leader in African tourism. “We are leading the pack on the continent in digitising a destination management company through the creation of our virtual marketplace,” says Wiest.

STABILITY & FUTURE GROWTH

Despite significant investments in growth, TDM remains financially strong. “Many companies came out of Covid with enormous debt, but we didn’t. We are poised for growth and expansion,” Wiest says.

Tourism has returned as a strong contributor to the African economy. By 2024, the industry is expected to generate $23.37 billion, with a projected growth rate of 7.5% through 2029. Africa remains home to some of the world’s most attractive destinations, including Kruger National Park, the Great Pyramids of Giza, and Victoria Falls.

Even with Africa’s natural wonders, poor service can detract from the overall travel experience. Wiest emphasises that while digital tools are essential, TDM remains focused on providing high-quality service. “In South Africa, you must offer concierge services for more demanding consumers,” he says. “More of our customers want responsible travel, and we’re developing products around that.”

Wiest also believes that customer service will become increasingly important as consumers grow frustrated with impersonal online platforms. He recalls TDM’s efforts during the pandemic, where they ensured that every traveller was safely returned home, unlike many larger travel companies that struggled to track their customers.

Looking ahead, Wiest is optimistic about the future of TDM and the tourism industry. “We are leading in terms of digital capability and geographic footprint. Those are the things that will set us apart and keep us sustainable moving forward.”

In a rapidly changing industry, Wiest stresses the importance of excellence. “Just making a hotel booking is no longer sufficient,” he concludes. “Being average is no longer good enough—you have to be excellent to compete.”