Another Hotel on Route 62: Room for a Niche?

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CASE STUDY. Moyo believed that there could be scope for a disruptive hotel model on Cape Route 62, but it was crucial to target the right audience.

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Another Hotel on Route 62: Room for a Niche: 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.

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