Driven by inflation outpacing nominal wage growth, real take-home pay in South Africa was down 2.2% year-on-year in July 2026, reaching an average real net salary of R20,269. According to the PayInc Net Salary Index, this marks a slight month-on-month improvement of 0.4% from June, though purchasing power remains well below where it was a year ago.
With wage growth failing to keep up with rising living costs, households have less disposable income to work with, squeezing budgets and impacting discretionary spend. By rights, travel should be the first luxury to go, yet it is being closely guarded.
Euan McNeil, Managing Director at Flight Centre South Africa, believes there is a simple explanation. “When income tightens, you cut the line items that add the least value. For South Africans, travel still holds so much value that it has become something they protect and continue to prioritise.”
A global pattern, playing out at home
Skift’s State of Travel 2026 report has identified a similar pattern across global markets, including the United States, United Kingdom, China, and India, where more than half of respondents (52%) said they would still travel but adjust their plans because of rising prices; 36% said they would continue travelling without cutting back; and only 1% planned to postpone or cancel.
The Flight Centre Travel Group’s December numbers back this up.
“FCTG is forecasting 31,100 nett ticket bookings between 1 December and 6 January, up from 28,800 year-on-year,” says McNeil. “This number reflects confirmed trips, after cancellations and refunds are stripped out, which bodes really well for peak season.”
According to McNeil, volumes on Middle Eastern carriers are up on last year, helped by recovering confidence in the Gulf carriers after the disruption earlier this year. Emirates alone now flies 49 times a week into the three main South African cities, and Gulf fares stay among the most competitive on long-haul.
“Obviously, geopolitical tensions are still top of mind, but what our travel experts are seeing is a reassurance conversation, not a refusal to travel,” says McNeil. “Clients are taking longer to move from quote to confirmation and are, quite rightly, focused on fare types and flexibility, but the great majority are still booking. When money is tight, the December trip is one of the last things South Africans will give up; they would rather re-engineer it than let it go.”
Re-engineering the December trip
According to Skift, the most common cost-saving behaviours among respondents include looking for cheaper flights (37%); opting for less expensive destinations (30%); shortening the trip (30%); cutting back on activities, dining or experiences (23%); choosing more modest accommodation (20%); travelling less often overall (20%); and swapping short flights for trains or buses.
“Flight Centre’s own research shows value for money is a clear priority for 97% of South African travellers, the highest of all our markets,” says McNeil. “And the tighter the budget, the more they lean on expert advice, because when every rand counts, people want to be sure they’re spending it well.”
Spend where it matters
With global airfares up more than 20% over the past year, the best advice is to book early, lock in lower baseline prices, avoid steep last-minute spikes, and secure better dates, flights, and accommodation options.
As McNeil explains, another strategy is to trim a trip’s base costs and spend deliberately on a few touches that lift the whole experience, like a pre-booked airport transfer or one anchor experience worth building the trip around.
At the top sits “lux-scaping”, a trend identified by Marriott Bonvoy, whereby travellers book a single night of real luxury at the start or end of a trip (think a 5-star splurge at a top resort), with the rest kept modest and affordable.
Importantly, McNeil says the holiday matters too much to let admin derail it.
“Check that your passport is valid for at least six months beyond your return date and that it has enough blank pages. Also, confirm the visa requirements for your destination and apply early, since peak-season backlogs are common,” says McNeil. “And while it’s tempting to hold out for a last-minute deal, especially when money is tight, December rarely rewards it; peak demand pushes prices up, and the best-value fares and rooms go fast.”
Ready to plan a December trip that makes the most of every rand? Chat to a Flight Centre Travel Expert or visit www.flightcentre.co.za.