Budget and luxury holidays both in demand

SOUTH Africa’s shrinking GDP has
led to more travellers looking for
cheaper travel options to fit their
budgets. Luxury travellers, however,
who haven’t been as affected by the
country’s recession, are travelling more
than ever thanks to holiday package
specials.
South Africa hit a technical recession
after it suffered two consecutive
quarters of negative economic growth:
Its GDP contracted by 0,3% in Q4 of
2016, and contracted 0,7% during Q1
of 2017.
Debbie Beckett, ITC of Travel
Counsellors, who specialises in leisure
travel, says, as a result, she has seen
a marked increase in requests for
both budget and luxury travel products
since the start of the year.
She says clients who fall into the
middle segment – those who can
afford R40 000 on a holiday to
Mauritius – are now looking at more
affordable destinations like Zanzibar
and Thailand because they come at
half the price.
“At the same time, clients who
usually book more expensive holidays,
like those around R150 000, are
booking more than ever, thanks to
great offers,” she says.
Debbie Joubert, md of Sure Travel
24-7, says her agency has been
focusing on promoting both budget
destinations like Thailand (priced at
R15 000) and luxury destinations
(priced at R150 000) in order to
adjust to travellers’ needs.
Despite the technical recession,
South Africans’ appetite for travel
should remain stable, says Otto de
Vries, ceo of Asata.
Otto says agents can still protect
their own income by showing the value
they offer.
“We see this as a golden opportunity
for travel consultants to position
themselves as experts in assisting
travellers on how to spend their
money.”