SA’s middle market changes travel game

While luxury travel often dominates the headlines, industry players say the most significant shift in South Africa’s outbound travel market is taking place in the middle-income segment.

“The growth of South Africa’s middle-income traveller is not just a trend, it represents a really important shift in how people are choosing to travel. This is a segment that’s incredibly intentional. They are mindful of budget, but they’re not willing to compromise on the experience,” explains Darsha Soobramoney, Marketing and Events Manager of The Travel Corporation South Africa. 

In conversations with several travel executives, it became apparent that this client segment is not defined by an age group, budget or specific set of products, but by their financial strategising and determination to travel despite economic uncertainty.

“The common factor is not age, but mindset. Today’s middle‑market traveller prioritises financial control, transparency, and the ability to plan well ahead – particularly in an environment where costs and travel requirements can change quickly,” said Reece Oakes, CEO of Rennies BCD.

Soobramoney notes that the recent Middle East crisis has further entrenched this trend. 

“Travellers want to know that if something changes, they’re supported. For us, that starts right at booking. We offer flexibility to change plans before final payment without penalties, and the option to move deposits if needed,” said Soobramoney. “We have seen how important that support is in moments of general uncertainty or, for example, with the recent situation in the Middle East.”

Payment plans

However, one of the biggest barriers to entry for this specific demographic is affordability. 

“Affordability in this sense is not just about price, it’s about how people pay. We have definitely seen a shift toward travellers wanting more flexibility, so options like instalment plans or buy-now-pay-later have become really important. It allows people to plan ahead and lock in something special, without the pressure of paying everything upfront,” said Soobramoney.

Kele Lekalake, MD of Harvey World Travel Southern Africa, explained that payment plans were particularly effective in the South African market due to cultural reliance on systems such as stokvels, and that they accommodated a surprisingly large range of clientele.

Lekalake found that Harvey’s Travel Wallet attracted both individual travellers across the age spectrum as well as parents and extended family saving for family trips and friends saving for a group trip.

“One of the most notable trends is that payment‑based travel is no longer age‑specific. While millennials still make up a significant portion of Vacay Layaway users,” said Oakes, referring to Rennies BCD’s payment plan option, “there is strong uptake across Gen X and family travellers who value budgeting certainty and controlled spending over the use of credit facilities.”

Phetogo Kubheka, Senior Operations Manager for MICE & Leisure at Rennies BCD Travel, explained that travel stash programmes were designed to make travel more accessible and financially manageable, allowing travellers to feel more empowered and encouraging them to save more to book the best possible travel experience. 

“By reframing travel as a savings journey rather than a once‑off expense, we’re making holidays achievable for customers who previously felt locked out of the market,” said Kubheka.

Quality

While one may expect these travellers to choose the cheapest option, the additional time and consideration dedicated to these travellers’ aspirations sees them opt, more often than not, for all-inclusive, unique experiential travel. 

“They want the full experience,” said Lekalake. “It is not necessarily luxury, but it is often all-inclusive. They want to have their travel, accommodation and transfers sorted. They want excursions and authentic local experiences all organised. When it comes to families and groups, they want to have all their meals and drinks included so that they do not have to worry about it while they are travelling.”

Oakes explained that, by locking in their total trip costs upfront, it allowed these travellers to manage their budgets confidently and avoid on‑destination spending anxiety.

“That said, traditional flight‑and‑hotel bookings still remain popular for shorter regional trips and city breaks, particularly among travellers seeking flexibility or travelling outside peak periods,” said Oakes. “But, overall, the defining trend for 2026 is a shift toward intentional, planned travel.”