THE rand has strengthened
significantly compared with the
same time last year. Industry
experts report record sales for
2017 and expect the trend will only
continue with a substantial increase in
international travel bookings predicted
for the year.
According to XE Currency Tables, on
January 15, 2016 the rand hit a low of
R24,03 to the pound (due to political
shenanigans) whereas it was trading
at R16,46 at the same time this year.
While the pound has dropped after the
Brexit vote, the rand is currently trading
at R14,38 to the euro and R13,52 to
the dollar compared with R18,44 and
R16,82 respectively at the same time
last year – a considerable improvement.
Industry experts attribute their January
booking success to the rand’s recovery
– both Travel Counsellors and Pentravel
report record results.
Travel Counsellors announced record
sales for January, posting 20% year-onyear
growth in South Africa with 10% of
SA Travel Counsellors celebrating their
best months ever in January 2017, says
marketing and recruitment manager,
Michelle Bullmore.
“We have had a phenomenal January,
and this is still flowing over into
February – not only have our enquiries
and quotes increased but we are
reporting a 21% growth in sales this
year versus last year,” says Michelle
Bergset, coo of Pentravel.
“The stronger rand must have
played a big part in our huge
increase in January sales,”
says md of Beachcomber
Tours, Terry Munro. “I am not
sure if this is the only reason
for the increase in demand.
Possibly clients were also
holding back on bookings until
after Christmas.”
And the trade expects the
trend to continue. Michelle
Bergset says she expects
booking behaviour to remain
positive, adding that Pentravel
has seen a “super increase”
in international cruise
bookings in particular.
Andrew Stark, ceo of Flight
Centre Travel Group SA, says
he expects South Africans will
forget the “hangover they had
after their Europe spend in
June last year” and that there
would definitely be a spike in
outbound bookings as a result
of a stronger rand.
Although inundated with
quotes, Annemarie Lexow,
sales and marketing manager
of Travel Vision, says there
have been few conversions. “I
suspect travellers are hoping
that the rand will strengthen
even more and that’s why they
are not booking yet.”
Despite a stronger rand,
corporates prefer to take a
more restrained approach
to travel expenditure. Ben
Langner, md of Carlson
Wagonlit Travel, says it’s
because “the operating
environment for SA
businesses remains very
tough,” but he does agree
that “a stronger rand would
definitely be helpful in
stimulating more overseas
travel in due course”
