DEBT-ridden South African households are choosing solvency ahead of the sun and sea this year.
Travel and accommodation bookings groups are worried about December, with some reporting that sales are up to 20% slower than last year.
"The travel demand is picking up but is not as busy as it used to be," says Sandy Pretorius, a manager at travel group Harvey World Travel.
"Travel packages are fewer and we are mainly selling flights only, with the clients doing their own travel arrangements online or staying with family."
Business has taken a huge knock during the recession and is still very slow, although starting to return to levels last seen 18 months ago, says John Ridler of Thompsons Holidays.
Lindy Wattrus, owner of the Nelspruit branch of Harvey, says the effect of the recession is still seen in the middle-income market in particular.
"We find that we are competing for the same spend against indirect competition, such as the ever rising cost of consumables in the form of electricity bills, groceries and fuel.
"These costs have risen and the mass market has clearly felt the pinch, so when they choose between a long weekend to Cape Town or a 20% increase in electricity, there is no choice on where the money must go."
Ridler says there is a definite change in the behaviour of travelling South Africans; they are much more concerned about price.
There is a much bigger demand for all-inclusive packages. Consumers ask many more questions about what is included in a travel package, he says. For instance, while in the past offering breakfast was sufficient, now all meals have to be included.
Hotel packages in Mauritius with free drinks at meal times are in particular demand and all-inclusive packages sell much more easily, he says.
He has also seen a move to more last-minute travel purchases, where consumers use windfall money to finance a trip.
The phenomenon of a long South African summer holiday may also be in for a makeover.
It looks like shorter but more frequent weekend breaks closer to home are challenging the traditional longer holiday, says Barnie Louw, editor of outdoor and travel magazine Weg!/go!.
While the long June and December holidays are certainly not a thing of the past, he thinks not only cost but also time is convincing consumers to opt for shorter breaks.
Indian Ocean islands offer great valueThere have been mixed reports about whether the rand is boosting demand for overseas holidays.
While some operators see no change or a small uptick in demand, others are more upbeat.
"The stronger rand has possibly enabled operators and airlines to offer better rand-priced deals, thereby attracting a little more of the market than they were able to in 2009," says Wattrus.
Joanne Thorburn of Harvey World Travel Somerset West has also seen an increase in overseas booking.
"Leisure travellers are asking for quotes and planning holidays for next year, but wanting to book and pay now to take advantage of the strong rand.
"We are also noticing that families who have not booked trips for December holidays are starting to book now because they can get better value. The main destinations that this will benefit are the Indian Ocean islands as well as the Far East," says Thorburn.
"Zanzibar is particularly cheap for December, as well as Singapore Airlines flights to Australia. Starlight Cruises are a huge seller for us because they are cheap and great value for money."
Other operators report that skiing holidays in Austria may also get more interest in December because of the rand, which is close to its strongest levels in three years against the dollar.
However, Pretorius says many people are still hesitant.
"(Travellers) are all still very worried that the rand could change overnight. They can maybe just afford the packages but then not the spending money," says Pretorius.
Ridler says overseas travel packages, which guarantee prices for up to six months and reduce the risk of a weakening rand, may prove to be popular.
But according to Louw, while the rand may make it cheaper to go overseas, many people who can afford it these days still choose a bush holiday in SA.
- Fin24