Recent data reveals a significant shift in the travel habits of South Africans, who are now allocating a more substantial portion of their income to using travel agents – a trend that has notably increased compared with pre-pandemic levels.
Standard Bank figures reveal a significant change in consumer behaviour. Before the pandemic, consumers spent roughly 1% of their salary on travel agent services. By the end of 2023, this figure had risen to an average of 1,5% of salary expenditure, marking a shift in spending habits.
This data was extracted from Standard Bank customers’ spending across various categories, presented in the Standard Bank Economic Outlook for 2024, delivered by the bank’s Chief Economist, Goolam Ballim.
“That’s a 50% increase, so it’s a pretty significant jump,” said Kirby Gordon, FlySafair’s Chief Marketing Officer, during a roundtable discussion on aviation and travel trends.
Clear growth
Gordon also noted that online and offline agencies were growing at a 13,6% CAGR, indicating that consumers were gravitating more towards online travel agents. He attributed this trend to the growing complexity of travel and the rising cost of living in the post-pandemic world.
“For many, the COVID-19 pandemic highlighted the complexities of travelling, leading many to turn to experts for assistance.”
Aadil Esack, GM of XL Travel, attributes the increase to the ongoing wave of revenge travel.
“Personally, I thought the level of demand would come down but we’re almost into the second quarter of the year and it seems sustainable.”
“There has also been an uptake in corporate travel. Last year was a good year for us on the corporate side,” he added.
Data from Statista also indicates that South Africa’s spend on business tourism increased from 35% to 43% from 2019 to 2021.
“There is only so much you can do using technology. There is no replacement for looking someone in the eye and shaking their hand, that’s the best way to do business,” said Esack.
Lastly, according to Gordon, more travellers are choosing to use the services of a travel adviser as they appreciate the convenience and peace of mind that comes with having a professional handle their travel arrangements. As a result, they are willing to allocate an additional percentage of their salaries to ensure their trips are thoroughly researched and tailored to their needs and budget.
Esack added that, while demand for travel was high, supplier capacity remained an issue, particularly in airlines, driving high prices for outbound travel.
South Africans are, however, undaunted.
"People are still paying whatever it costs,” concluded Esack.
