Travel demand holds despite airfare hikes

Despite ongoing geopolitical uncertainty and international airfares rising by as much as 50%, South Africans are refusing to cancel their travel plans, choosing to absorb the costs, reroute, or postpone their journeys.

According to a survey by the Association of Southern African Travel Agents and Advisors (Asata), 75% of travel agencies across South Africa reported price increases of between 10% and 50%, driven by rising oil prices, limited availability and the need to reroute away from affected airspace.

Despite this financial pressure, outright cancellations remain low at 10%, with travellers choosing to absorb the costs, reroute, or postpone their journeys. Around 55% of agents said clients were ‘cautiously optimistic’ and still intended to travel.

Mid-year bookings decline

During the mid-year holidays, 42% of agencies report that clients plan to travel, however booking volumes have decreased. 

A third of agencies (33%) are seeing year-on-year bookings decline, largely because 22% of clients are adopting a ‘wait-and-see’ approach before committing financially.

Traveller concerns

Clients have expressed concerns about flight delays (79%), increased costs (77%), and losing money on non-refundable bookings (57%). 

“Booking behaviour has shifted. We are seeing 36% of clients delay their bookings until the last minute to avoid sudden disruptions, while another 29% are booking further in advance to secure scarce inventory. What stands out most is that travellers no longer want to navigate this alone and want a professional who can guarantee flexibility,” said Otto de Vries, CEO of Asata.

To navigate the situation and mitigate financial risk, travellers are relying on the expertise of travel agents to decode complex airline policies, secure flexible tickets, and ensure that investments are protected when schedules change. As a result, 20% of clients are actively demanding flexible fares or ‘Cancel for Any Reason’ insurance policies, regardless of the premium.

In response, 70% of agencies have updated or are reviewing their crisis communication and duty of care procedures to better protect their clients. 

“No app or online booking platform can call an airline at midnight, fight for a refund, or redesign an itinerary in real time. Our members have been doing that for weeks. In an uncertain world, the expertise and human judgement of a professional travel adviser is irreplaceable. With 57% worried about losing money on non-refundable bookings and prices up by as much as 50%, the stakes are too high to go it alone,” said De Vries.