South Africans are travelling differently, creating new opportunities for small and medium sized businesses (SMEs) across the country’s hospitality and tourism sector as more local travellers choose shorter, experience led getaways throughout the year.
The shift comes into focus during Tourism Month, which highlights the contribution of tourism to economic growth and job creation while drawing attention to the growing importance of domestic travellers.
According to Kevan Govender, Regional Investment Manager at Business Partners Limited, changing travel habits are creating opportunities for guesthouses, boutique hotels, tour operators, restaurants, activity providers and other tourism focused SMEs that can adapt to what local travellers increasingly want.
“The profile of the domestic traveller has evolved considerably over the past few years. South Africans are increasingly looking for authentic, experience led travel that offers something distinctive, whether that's wellness retreats, culinary experiences, adventure tourism, cultural immersion, or family focused getaways,” Govender said.
For smaller hospitality businesses, this shift could provide an opportunity to compete through personalised service, distinctive experiences and strong connections to their local communities.
SMEs can often be more agile than larger hospitality groups, allowing them to develop specialised offerings that reflect the character, culture and attractions of their destinations.
Travelling beyond the traditional holiday
One of the most notable changes in domestic tourism is the move away from relying solely on traditional holiday periods.
Instead, South Africans are increasingly taking shorter and more frequent trips throughout the year.
Long weekends, sporting events, music festivals, conferences, school holidays and the flexibility offered by remote working are all contributing to tourism activity outside traditional peak seasons.
“It is encouraging to see the growing demand for year round travel experiences,” Govender said.
“Many businesses that previously relied heavily on seasonal tourism are now finding opportunities to attract visitors throughout the year by tailoring their offerings to specific interests, events, and niche markets,” he said.
For hospitality SMEs, a more consistent flow of visitors could help reduce their reliance on a small number of peak periods and create opportunities to generate revenue across more of the calendar.
Businesses could also work with other local operators to develop packages that combine accommodation, activities, food and cultural experiences.
Such partnerships could give travellers greater value while encouraging them to stay longer and explore more of a destination.
Experience matters as much as price
The changing domestic traveller is also placing greater emphasis on the overall experience.
While affordability remains important amid ongoing household financial pressures, Govender said consumers are increasingly considering what they receive for their money rather than simply choosing the cheapest option.
“Today's travellers are looking for value, but value does not always mean the lowest price. It means memorable experiences, excellent service, convenience, authenticity, and a sense that their trip was worthwhile,” Govender said.
This creates an opportunity for smaller businesses to compete on factors beyond price.
A boutique accommodation provider, for example, can differentiate itself through personalised service, local experiences or partnerships with nearby attractions, restaurants and activity providers.
Tour operators can similarly develop niche experiences based on food, culture, adventure, wellness or the natural environment.
“SMEs that focus on delivering exceptional customer experiences can build strong customer loyalty and generate repeat business,” Govender said.
Digital visibility becomes essential
The way travellers discover and compare businesses is also changing.
With consumers increasingly researching destinations, reading reviews and comparing accommodation and activities online before making a booking, digital visibility has become an important part of competing in the tourism market.
For hospitality SMEs, having an up to date online presence, actively managing customer reviews and clearly communicating what makes their offering different can help them reach potential customers before they choose where to travel.
A strong digital presence can also allow smaller operators to compete for attention with much larger hospitality businesses.
Govender said businesses needed to understand that attracting customers was only the first step.
Delivering a positive experience can turn a first time visitor into a repeat customer, creating a potentially valuable source of sustainable revenue for smaller businesses.
South Africa's tourism sector continues to face challenges, including rising operating costs, infrastructure constraints and skills shortages.
However, the changing behaviour of domestic travellers could provide a significant growth opportunity for businesses capable of adapting.
The move towards shorter trips, niche experiences and year round travel could also help spread tourism activity across different regions and seasons.
For SMEs, this creates an opportunity to build businesses around specific customer interests rather than competing solely on room rates, meal prices or standard tourism packages.
Collaboration could become increasingly important as businesses look to create complete experiences for visitors.
Accommodation providers, restaurants, activity operators, tour guides and event organisers can work together to create packages that encourage travellers to spend more time and money within a destination.
“Domestic tourism remains one of the most accessible and sustainable growth opportunities for hospitality SMEs,” Govender said.
“Businesses that are attuned to evolving consumer preferences, leverage technology effectively, build strategic partnerships, and focus on delivering distinctive experiences will be best positioned to capture growth and build long term resilience within South Africa's dynamic tourism market,” he said.
As Tourism Month puts the spotlight on the industry's economic contribution, the changing habits of South African travellers suggest that an important part of the country's tourism growth story may not depend solely on attracting international visitors.
ashley.lechman@nationalmg.co.za