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WHL Consulting case study for Livingston, Zambia

SME Market Access Program

Why do SMEs Have Challenge to Access Markets?

Although, many SMEs are now becoming aware of the Internet and its importance for selling their product, they do not really understand the distribution options available to them and how they work. Some of their problems include (but are not limited to):
  • Lack of understanding of e-commerce (including payment options)
  • No pricing structures for on or offline distribution (including commission structures)
  • Informal advance booking knowledge or practice
  • No knowledge of yield management (balancing the distribution options)
  • Limited or inadequate content (including digital photos and written copy)
The SME Market Access Program

WHL Consulting has faced these problems and tackeled them head-on in many countries around the world and the work over five years has resulted in the WHL Consulting SME Market Access Program. The key advantage is in our “turn-key” comprehensive programmatic approach; as a result the program is efficient, cost effective, and can be rapidly deployed in any destination with both “quick win” results, as well as the establishment of a strong foundation for future support initiatives targeted at the sector. This is more than just a consulting exercise: in every destination where we have run the program we have trained and empowered local partners and connected large numbers of SMEs to the International Tourism Market.

The program involves several elements, each of which is integral to the whole. The individual SMEs see both direct benefits as well as process benefits (i.e. through the process of participating in the entire program). The benefits are better when all of the activites are implemented within a program, however each activity can be seen as a "menu" and each activity can be implemented as a stand alone project:
Since, Market Access for SMEs is a relatively new field and the options seem endless, often project managers are not sure exactly what they need in their destination. In this case, WHL Consulting suggests undertaking a destination scoping assessment to generate an appropriate market access strategy that suits the need of the project or destination. Click here to read more about WHL Consulting's approach to project design and management in the developing world.



Market Readiness Assessments

WHL Consulting has developed a proprietary tool called a Market Readiness Assessment. The Market Readiness Assessment is designed to identify those accommodation products ready to participate in marketing directly to a global audience, as well as those nearly ready or not ready at all.

Important outputs from this assessment allow precise training and other (e.g. investment) needs to be identified. By setting a cut-off, such as focusing next stage capacity building and investment funds on the “nearly ready” pool of providers, it is also possible to maximize returns with limited resources.

The Market Readiness Assessment® also allows for benchmarking individual establishments against aggregate data as well as identifying common areas of need and any systemic problems in a particular region or destination. This aspect is of particular importance when trying to improve the climate for the SME's Access to Finance.

For most SME accommodation providers who have undergone the Market Readiness Assessment, this is the first time a professional grading or training needs assessment has ever been done. It is also the first time they have been benchmarked against their peers and provided with a roadmap for improvements.

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Content Collection Exercise

It is one thing to have a nice guesthouse or local homestay. It is entirely another thing to have the professional and high quality digital content (photos and story) needed to sell the product. One of the biggest needs for SMEs throughout the developing world is this content, without which it will be impossible to reach a global audience. It is the minimum entry requirement for building market access.

The content needs to be high quality, in the correct format (e.g. digital images in both high and low resolution formats), and also placed in the hands of the accommodation owner so that they can use the material to leverage the multitude of distribution channels available to them.

The WHL Consulting Content Collection Exercise is designed specifically to address this need. Using a template driven guide, all digital content collected in the field is automatically uploaded to the WHL database where it can be checked and stored. The data is then available to generate DVDs (for supply to the accommodation provider), plus it is available for print material, for access by local or regional tourism marketing web sites, and for use by global distribution sites such as whl.travel. Additionally, the content is appropriate for use by tourism marketing bodies for destination marketing initiatives.

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E-marketplace Development

Any program aimed at strengthening market access and outreach of SMEs must also address market places. The third component of whl consulting’s Market Access Program is the establishment of e-marketplaces specifically targeted at the SME sector working with our partner whl.travel to develop the local booking platform. This involves the establishment of the portals and the identification, training and mentoring of local tour operators to manage and market the portals effectively and profitably. The advantage of using the whl.travel platform is that there is an already willing existing marketplace with a global outreach, that is committed to uploading as many of the market ready properties and working with the nearly market properties as possible.

It should be noted that the program is not just focused on the whl.travel portals, but on the ability of SMEs to build their market access strategies through relationships with other tour operators, other online market places, destination marketing initiatives through country tourism agencies, etc. It has been shown that featuring on whl.travel will diminish barriers and have a catalytic effect of seeing the properties get more confidence and leveraging more online / offline market presence elsewhere.

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Market Access Training Seminars

The whl consulting Market Access Training Seminars were developed to train small accommodation providers about market access options they need to leverage to succeed in today’s very competitive environment. We explain about working with local destination marketing sites; with inbound tour operators; with package tour operators; with online marketing platforms; and with their own web site. There is much to learn here from the basics of contracting and commission sharing through to the challenges of working with multiple channels and how to optimize yields. The intention is to teach the small local accommodation providers to develop and define a strategy that best meets their unique needs.

WHL Consulting’s experience is that the delivery of these seminars as an integral part of the SME Market Access Program results in increased listings of the SMEs in online market places, increases the chances of success in these market places, and develops additional business relationships between the SMEs and tour operators.

For more information see the Training and Facilitation section of this website.

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Innovative Tour Product Packaging

The SME Market Access Program is ideally suited for products such as community-based ecotourism, cultural tours and homestays. Frequently such products are conceived out of a conservation need to reduce pressure on natural resources or through development and poverty reduction strategies that attempt to bring additional income to local communities. Such products have the potential of bringing about profound social and ecological benefits, but in many instances they have been designed and implemented by donor agencies or NGOs without fully integrating the private sector, especially in getting access to markets. The result is that while the products might be excellent, not as many tourists visit the products as originally hoped for.

What is different about whl consulting’s approach to these products is that we work within the existing local trade to assist local tour operators to develop and market product around the community assets. Thereby leaving a lasting sustainable tour product after the consultancy has ended. The goal of each of these implementations is to create a product that will be featured on the corresponding local whl.travel website. whl consulting has deep experience in working with such communities and tour operators to bring in market realities to their products, in terms of building confident business practices and relationships, product development and packaging, marketing and placement onto the e-marketplaces.

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