During a difficult economic period, it is unsurprising that fewer people jet off to their dream destination. However, a new South African survey has shown that far less than expected purchase decision makers (PDMs) have elected to splash out on airfare as well as paid-for accommodation.
Roots 2010, the NAB and Caxton/CTP's recent retail and readership survey, found that the number of PDMs who have flown somewhere in the past year dropped from 15% in 2007 to 13% in 2010. The percentage of these individuals who stayed in paid-for accommodation over the same time period halved, from an average of 12% in 2007 to 6% in 2010 across SA.
“When the going gets tough, the tough stay at home it seems, even those individuals who ordinarily would be hitting the road for holidays.
“The survey indicates that decision makers opted to entertain at home rather than fly to a holiday destination. Sandton residents who entertain at home once a month or more have grown from 58% in 2007 to 65% in 2010,” remarks Melody Redman, general manager of Budget Insurance Brokers.
Air travel breakdown
Roots 2010 found that the most travelled to suburbs by air are Somerset West (41%), Sandton (38%), Rosebank/Killarney (37%), Bedfordview/Edenvale (35%) and Amanzimtoti (35%).
Of those flying to and from all the measured urban areas in 2007, on average 57% of PDMs flew South African Airways (SAA), while 28% travelled with Kulula.com, 17% with British Airways (BA) and 9% each for both 1Time and Nationwide.
This year, however, the number of decision makers who flew SAA dropped 8% to 49%, followed by Kulula.com (25%), Mango (16%), 1Time (13%) and BA (12%).
“It’s clear that South Africans have moved to low-cost airlines since the previous survey three years ago,” Redman comments.
A reduced budget does not mean reduced fun
However, as disposable income becomes less plentiful during a difficult economic situation, it is important to bear in mind that good times definitely need not become a thing of the past.
“If there is one thing that every South African knows, it is how to have a good time on a reduced budget,” Redman smiles.
She concludes, “A DVD with friends, a picnic at the botanical gardens or an afternoon wandering around a flea market are just some of the possibilities that provide fun and entertainment on a budget. Just remember, if you are staying at home more, it’s a good idea to have adequate home contents and buildings insurance in place as accidents do happen.”