Tour operators and hoteliers have reported an increase in bookings from core markets, including the UK, US and Europe, with guests booking longer stays and spending more money during their stay, while booking periods have decreased.
Legacy Hotels MD, Paddy Brearley says he has seen an increase in numbers since November last year, but points out that other factors including the end of the Ebola scare, the cricket and the visit of the Chinese President in December may also have contributed.
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Both Brearley and Danny Bryer, Director of Sales, Marketing and Revenue Management at Protea Hotels, have seen an increase in bookings as well as spend. “International tourists seem to spend more on food and beverages as we offer great value,” says Brearley. “Travellers also have the ability to splurge on additional services and activities within their stay experience and to extend their stay experience,” says Bryer.
Likewise, James Delaney, Co-owner of Moja Media, which publishes Moja Heritage Collection and Portfolio Collection, says guests coming to South Africa are more accepting of recommendations and less inclined to look for cheaper deals. “We’ve had such a deal-driven culture amongst FITs for the past few years driven by the discount websites, where people had little loyalty. Now they’re listening to recommendations, both from Portfolio’s consultants and those of our full-service operator Africa Collection.”
Delaney Portfolio has seen a huge increase in enquiries and bookings from UK travellers. “They are now bringing their families with them, where previously it was mostly couples.” He adds that these seem to be spontaneous trips because of the shorter lead times. Craig Drysdale, GM: Global Sales for Thompsons Africa also reports short lead booking times.
Peter Schoeman, Divisional Director, Sales and Marketing at City Lodge Hotel Group, says that while it is early days, if the rand stays this low, people will consider SA more favourably as a holiday destination. “I would assume people will ‘buy up’, so instead of staying in a three-star they might now trade up to a four- or five-star at similar prices, given the exchange rate.”
Tour operators have also seen an increase in bookings, while many have also reported that guests are booking longer stays.
Both Drysdale and Alessandra Allemann, Sales and Marketing Director of Welcome Tourism Services, have seen an increase in bookings. Allemann says South Africa has climbed up on the list of top places to visit for the Germanic countries, partly because of the weakened rand, while the US is also looking good. “US we are definitely tracking well and seeing bookings and confirmations even into 2017,” she says.
Giorgi Vass, Chief Operating Officer at Springbok Atlas Tours & Safaris, says there has been an increase in bookings for guided tours from the UK and for tailor-made groups and FITs from the UK and US. “We’re seeing that travellers are booking longer tours, as opposed to the shorter tours, as their money can go a little further now for both guided and tailor-made,” he says.
However, while the weakened rand has driven business to South Africa, dollar-priced destinations in the rest of Southern Africa are nor faring as well. Vass reports very little interest at the moment for Zimbabwe, Zambia and Botswana, but an increase in demand for South Africa and Namibia.
Drysdale says the increase in demand also comes with challenges. “One of the major issues we are facing is room availability, mainly with lodges. Supply and demand is at its high, especially around the high and shoulder seasons.” Delaney agrees. He says the increase in last-minute bookings are hard to fulfil in peak season. “Demand for key locations Cape Town currently exceeds supply, as do safari beds in the top reserves,” he says. “We’re having to turn down bookings, which is a pity.”
According to Allemann, Welcome Tourism Services has seen clients booking higher standards when it comes to accommodation. However, she points out that sudden rate increases from suppliers are concerning. [This] will affect our clients who have already published rates in their brochures for this year,” she says.
