John Mashego and two colleagues started Endless Vacations when they bought a run-down hotel in the Hazyview area in 1989. They slowly converted it and within three years they were awarded a three star status and an increase in occupancy. In the early nineties, with the dramatic growth of the travel industry, there were many competitive resorts that were established in the surrounding area which put significant pressure on Endless Vacation's financial performance. In an effort to combat lost market share, Endless Vacations increased their advertising spend and they hired overseas agents to market their hotel. This strategy has not been as effective as they expected and they are struggling to make any profits. In an effort to regain the financial security they once had, they are considering two potential ventures. The first venture is to establish a tour business for overseas visitors and the second venture is to develop an information website on SA tours and holiday resorts.
In 1989, when John Mashego and his two colleagues purchased the run-down hotel they recognized that there was a need for hotels in the Hazyview area. They took the time and money to convert it into a more luxurious hotel and by doing so they were rewarded with a three star status. This rating caused their occupancy to double almost immediately. At more or less the same time they started to see an increase in resorts being established in the area. They responded to this increase by substantially increasing their advertising spend and by hiring agents from overseas to market their hotel. The travel industry in South Africa was transforming rapidly.
In the early nineties, the economic climate in South Africa had changed significantly providing great prospects for those in ...