Recovery in the local corporate travel sector is likely to be driven by a surge in business travel from South Africa into developing economies and frontier markets, many of them also in Africa.
Bonnie Smith, GM of Corporate Traveller believes the call of emerging markets is strong and an opportunity for South Africa to explore emerging hubs. “Governments in these regions are championing industrialisation and rapid growth and it’s time for us to join the party.”
The latest findings from the Global Business Travel Association's 2023 annual global report reveal a surprising recovery in the global business travel industry. The rebound has outpaced its earlier projections which now indicate that the industry is poised to exceed its pre-pandemic spending levels, reaching over US$1,4 trillion (R27trn) in 2024 and projecting further growth to nearly $1,8 trillion (R34,3trn) by 2027.
Head of developing markets at a prominent motor manufacturing company spoke to Travel News about that company’s push into Africa and how the move had impacted its business travellers.
“Many regions, particularly in West Africa, are rapidly realising that attracting new business is the fastest way to grow their economies and receive travellers from developed countries. There is a huge untapped market for our products and services and, as a result, we have put an entire team in place to develop relationships, speak to heads of Governments in the countries we are targeting, get in touch with dealers and forge relationships that will be beneficial to all players.
Challenges
“We work closely with our TMC to identify the challenges and plan accordingly to ensure successful and productive trips into countries in West Africa. Transport infrastructure remains challenging, very few interline agreements and sketchy flight networks eat into our time away. It sometimes takes a whole day to reach another hub and the cost of having to issue separate air tickets is high. Health and safety of course are primary concerns as well as visa and entry requirements, customs and regulations. We have found that seeking local expertise from our dealers can help mitigate some of these difficulties.
“The ascent of some African countries to emerging market status heralds a significant economic opportunity for South African businesses. The road to enduring and robust private-sector-driven growth lies in access to capital markets, a prospect that had long appeared elusive for Africa but has now materialised into a tangible reality and South Africa needs to be part of that growth.”
Carla da Silva, General Manager Sales, Marketing, e-Commerce & Distribution at SAA, says that in the ever-changing landscape of aviation, SAA is intent on connecting the African continent with a network of strategically chosen destinations.
“SAA’s international prowess extends beyond our domestic borders, with key routes to the African continent and to São Paulo, those flights originating in both Cape Town and Johannesburg. Global links not only enrich the airline’s network but also open travel doors for its passengers across the vast expanse of Africa. And as SAA expands its footprint, it continues to uphold its commitment to excellence. Passengers can expect a journey marked by comfort and the warm hospitality that has become synonymous with the South African experience.”
SAA currently flies direct to Accra, Abidjan, Kinshasa, Harare, Victoria Falls, Lusaka, Windhoek, Mauritius, Lagos and São Paulo as well as on domestic routes between Johannesburg, Durban, Cape Town and most recently, Gqeberha.