Sonia Davies, CEO of multinational high luxe operator Scott Dunn, believes it’s not all plain sailing for the travel sector from here onwards. There are a number of other challenges ahead. These include the consequences of Brexit in the UK, commitment to more sustainable travel models and the resulting government airline caps and adjustments, together with evolving operating models in response to changing customer preferences.
In a recent Scott Dunn blog, however, Davies says she is optimistic. “I think we’ll see some short-term headwinds and some long-term systemic changes, but also opportunities. The industry is resilient and the demand for leisure travel is always there – and perhaps now more than ever.”
Guy Stehlik Chief Executive of BON Hotels, says the hotel group got through the pandemic, pulling out all the stops to survive. “As far as South Africa is concerned, the hospitality and travel industry here is painfully familiar with having to constantly square up to new sets of challenges and then finding creative ways to resolve them.
“These challenges are usually imposed by government’s own goals – think of the visa fiascos, the ongoing and now escalating water crisis, worsening loadshedding, debilitating strikes across all industry sectors, municipal unrest, violence, increasing crime and grime to name a few. Whilst we can be proud of our resilience and resourcefulness, our patience is rapidly coming to an end.”
Stehlik adds “We also face macro-economic factors that are once again outside our control – the knock-on effects of the Ukraine war, the ever-increasing price of jet fuel and airline prices, the price increases of basic commodities. This all contributes to depressing shortages and price increases whichsimply have to be accommodated and passed on to our consumers. There is no way out.
“Certain domestic hotels and groups have taken the opportunity to hold prices at those of 2019 levels. This is wholly unsustainable and simply cannot work. We will be forced into 20%-plus price increases in 2023 to accommodate inflation and rising costs. We remain resilient and creative though. It’s in our DNA as hospitality operators here in SA,” says Stehlik.
Vanya Lessing, CEO of the Sure Travel Group, believes a mindset that anticipates, adapts and moves quickly is imperative for complete recovery post pandemic.
“Was the pandemic our worst-case scenario? If so, take the lesson from it. Is your business future-fit? We must build strong financial resources and invest in technology to survive tough times. We are going to need our best people to weather the coming storms and we need to make sure we can retain and protect them,” she says.
Lessing says climate change is now a major global concern. “All major corporations are going to be under pressure to focus on sustainability issues by reducing carbon emissions and becoming aligned with the Paris Climate Change Agreement. South Africa has made a commitment to this agreement and is under huge pressure to speed up processes and take action.”
In August 2022, President Cyril Ramaphosa formed the Presidential Climate Commission to oversee the adoption and implementation of the framework. This will include all sectors of the public and private sectors. Lessing says it is imperative that all players in the travel environment keep updated and informed, because it will impact the entire travel and tourism chain.
