THE travel industry is feeling
the impact of a volatile
rand and weakened
economy, according to the
results of TNW’s recent market
sentiment survey.
Agents surveyed reported
that bookings were down, while
the fluctuating exchange rate
was also a key concern, forcing
clients to pay original quotes in
full, or risk seeing the price of
their trip sky rocket.
Agents said poor economic
conditions had resulted in a
plateau in consumer confidence
as the cost of living increases,
the price of travel goes up, and
the rate of exchange makes the
cost of travel unpredictable.
Angela Wood, gm of sales at
Thompsons Holidays, told TNW
that the volatile exchange rate
had forced the operator to go
back to agents, whose clients
had already paid deposits,
with increased pricing on their
bookings. “We are proactive
and ensure that we stay on top
of the rand fluctuations. We
have a staff member dedicated
to monitoring these fluctuations
so that we can inform the trade
accordingly. We advise agents
to phone in before making
full payment on a booking to
confirm that the rate has not
been impacted.”
“I have a client who booked
and paid a deposit in April on
the basis that the trip came
in on budget, only to find that
the rand dropped and her trip
would cost R100 000
more if she couldn’t pay the
original quote in full within 24
hours,” said Travel Counsellor
Siobhan Nel. She said she had
seen a noticeable decrease
in bookings for the December
period compared with last year.
Many agents reported low
bookings for the December
holiday period, with some
agents saying they were yet
to receive their first booking
for this period. The overall
sentiment is that clients are
increasingly afraid to book
holidays in advance in case the
rand value changes and they
are saddled with a hefty bill.
Agents surveyed indicated
that they were looking at ways
to diversify their strategy in
order to retain and increase
bookings.
These strategies included
promoting the increasing
number of visa-free, ‘value-formoney’
destinations; improving
their marketing strategies by
hosting travel functions and
inviting prospective clients;
putting together unique
domestic travel packages
that consumers can afford;
expanding their services to
accommodate inbound clients;
and creating ultra-personalised
packages that focus on a niche
market.
“I try to accommodate my
clients by looking for creative
local alternatives,” said
Siobhan. “This is the time
to personalise our service
and emphasise the value we
offer. We can use our industry
knowledge to offer clients
itineraries that meet their
needs, aren’t impacted by the
exchange rate, and that they
would not be able to come up
with by themselves.”
