Domestic holidays survive the squeeze

R ISING airfares and fuel costs are changing the way South Africans approach domestic travel with travellers becoming more selective about where they go, how long they stay and whether they fly or drive. Industry feedback suggests that cost pressures are reshaping travel decisions rather than stopping South Africans from taking local holidays altogether. FlySafair reported a softer second quarter, with passenger numbers down around 9% year on year. June was the weakest point before numbers turned positive again in July. The airline said this closely tracked movements in its fuel levy. The period in which it recorded the biggest pullback in demand coincided with the point at which its fuel surcharge was at its highest. Passenger numbers improved as the surcharge began to ease. “The throughline across all of this is fuel. It’s the single biggest external cost pressure on airfares right now,” Maryke Pienaar, Senior Commercial Manager for FlySafair, told Travel News. The airline adjusts its fuel levy weekly and says it monitors fuel closely as an indicator of where both pricing and demand could be heading. Value is priority Consultants are seeing a mixed picture in domestic leisure demand, says Jenna de Allende, consultant at Sure Giltedge International. While some had reported a slight softening, others continued to see steady demand, particularly for shorter breaks and value-driven experiences. “What is consistent, however, is that travellers are becoming more selective about where and how they spend their travel budget,” she says. Destinations offering good value, self-catering accommodation and flexible booking conditions are attracting increased interest. Travellers are also looking at comparative pricing, shorter stays, guesthouses and shoulder-season travel as they seek to manage costs. Shirley-Ann Henry, Regional Manager at Flight Centre South Africa, agrees that domestic leisure intent remained resilient. “South Africans are not abandoning local holidays but they are making more deliberate decisions about how they get there,” she says. Some families are trimming the length of their trips, while others are reconsidering the type of accommodation they book. Henry reminds the trade that their clients can also manage costs by shifting travel dates, with a difference of a week or two potentially affecting airfare and accommodation pricing. Henry says families are increasingly comparing the cost of domestic holidays with international options after researching local prices. Booking behaviour Higher costs are also influencing how far in advance travellers commit to trips, although booking patterns differ across the market. De Allende says booking further in advance remains one of the biggest trends among Sure Giltedge International’s clients, allowing travellers to secure better airfares and accommodation rates. FlySafair, however, has seen its booking curve shift slightly towards later bookings. “It’s not a dramatic change, more a sign that people are waiting a bit longer before committing, likely keeping an eye on where fuel-related costs are heading before locking in a booking,” says Pienaar. Price sensitivity is also evident in business travel. FlySafair says both leisure and business travellers have responded to fuel-driven cost pressures in recent months. Sure Giltedge International’s consultants, however, report that corporate travel remains strong across most sectors, with face-to-face meetings, conferences, site visits and training continuing to drive demand. Drive or fly? For larger families, travelling by road is becoming an increasingly common option. De Allende says larger families and multigenerational groups are increasingly hiring SUVs, vans and larger people carriers. Once the combined cost of multiple air tickets, baggage fees, transfers and car hire at the destination is considered, travelling together by road can work out to be more economically sound, while also giving families greater flexibility. However, Henry says the road-versus-air decision depends on the individual trip and assumptions should not be based on cost alone. For point-to-point destinations such as Sun City or a beachfront resort where travellers may not require a vehicle after arrival, flying and arranging a transfer could be more cost-effective than hiring a vehicle and paying for fuel. For a trip along the Garden Route, where a vehicle is needed throughout, the calculation changes. December outlook Despite the pressure on household travel budgets, industry feedback on the December holiday period remains positive. December continues to be one of South Africa’s busiest domestic travel periods and coastal destinations are expected to continue performing well, says De Allende. FlySafair is also cautiously optimistic, saying the festive period has historically proved resilient despite short-term price sensitivity. However, this outlook depends on fuel costs remaining relatively stable.