Safari travellers who previously opted for premium lodges are increasingly considering more affordable accommodation as they look to keep trip costs in check, according to operators who have noticed growing price sensitivity among clients.
David Ryan, CEO and Founder of Rhino Africa, told Tourism Update that exchange rate movements and annual rate increases are influencing booking decisions.
“Everything north of the Limpopo is dollar-based. Even many South African lodges set their pricing in dollars. There’s also the question about pricing ourselves out of the market.”
According to Ryan, four star-plus properties have picked up occupancy from some premium properties because of pricing.
The impact is particularly apparent among repeat guests who may return to Africa after several years only to find that the cost of a comparable safari has risen substantially, prompting them to ask for similar experiences at lower rates, he said.
Repeat guests who spent around US$20 000 on an African safari two years ago could now face costs of US$25 000-US$30 000, making them more reluctant to return to the same property, Ryan pointed out.
“They don’t naturally just go straight back to the same property. When it’s a repeat, it’s a repeat for the destination. It’s not necessarily a repeat for the property because pricing is impacting people’s decisions.”
Trading down, not out
Valerie de Bruyn, Owner and Travel Director of Africa Memories Travel, is also seeing greater price sensitivity, particularly among the mature and senior travellers her company serves.
“We are seeing some trading down rather than trading out of safari. Guests who may previously have chosen a higher-end lodge are often happy to consider a more affordable property, provided the overall safari experience remains strong. They still want the safari experience but are looking more carefully at where their money is best spent.”
De Bruyn is therefore receiving more enquiries along the lines of “Can you offer us a similar safari experience at a better rate?”
Clients are considering shorter stays, lower room categories, alternative properties and, in some cases, reducing non-essential extras to bring the overall cost down but they are less likely to compromise on the destination, she said.
“Clients often have a particular destination or experience in mind and would rather adjust the accommodation or inclusions to make the trip work within their budget.”
Another noticeable change, according to De Bruyn, is the increase in more spontaneous bookings and shorter lead times.
She believes this is influenced by a combination of factors: ongoing geopolitical uncertainty and international conflict, increases in petrol prices and fuel levies, rising living costs and investment market uncertainty.
“Clients appear to be more cautious about committing their disposable income too far in advance and are waiting until they have greater certainty about their financial position.”
Not a universal trend
However, not all safari operators are receiving requests from travellers for more affordable options.
Kirsty Gordon, CEO of Anywhere in Africa Safaris, said her clients, who range from mid-range to high-end travellers, have not shown greater price sensitivity towards safari accommodation.
“It has been more about price sensitivity on international flight costs into Africa due to the fuel increases, which clients book themselves, but not price sensitivity for lodges or hotels. We offer two options: one that is high-end luxury and another that is premium. Clients then have a choice and often choose the premium option.”
Gordon said Australian, Canadian and UK markets are more price-sensitive but she has not seen repeat clients downgrade their accommodation or shorten their stays to reduce costs.
“If they have travelled at that standard in the past, their choices will stay the same. If anything, they are changing their dates to find cheaper international flights into Africa.”
Gordon finds greater concern about the additional costs of getting to the lodges and destinations, particularly the cost and reliability of regional and charter flights.
“When those logistics become disproportionately expensive or complicated, they can have a greater influence on a client’s overall decision than the lodge rate.”
