South Africans hoping for financial breathing room received mixed news in September. Inflation expectations stabilised during the third quarter of 2026, but the South African Reserve Bank raised its policy rate by 25 basis points (effective 25 September), taking the prime lending rate to 10.75%. The unanimous decision followed renewed pressure from rising fuel prices and persistently high services inflation.
For households with home loans, vehicle finance, or other variable-rate debt, the increase means monthly repayments are likely to edge higher, leaving a little less room for non-essential spending.
So, does this mean the holiday of your dreams needs to go back onto the “maybe one day” list?
Not necessarily. Analysts and trade union officials still expect headline inflation to average 4.4% this year, according to the latest survey commissioned by the South African Reserve Bank. Forecasts for 2027 and 2028 have also improved slightly, falling to 4% and 3.8%, respectively.
Stable inflation expectations don’t mean prices are falling, and the interest-rate increase may place additional pressure on household budgets. However, greater predictability can still make it easier to set a realistic savings target and understand how long it might take to reach it.
“An interest-rate increase is never welcome news for indebted households, and travellers should reassess what they can comfortably put aside once their essential expenses and repayments have been covered,” says Antoinette Turner, General Manager of Flight Centre South Africa. “But that doesn’t necessarily mean abandoning the idea of a holiday. It may mean adjusting the destination, extending the savings period, or starting with a smaller amount. The important thing is to plan around the budget you actually have.”
A separate consumer confidence survey found that South African sentiment improved during the third quarter. While households are still expected to prioritise essentials and approach festive-season spending thoughtfully, the shift suggests that Saffas are beginning to feel a little more hopeful about their finances.
So, what does a holiday actually cost?
Based on current pricing, a couple could enjoy a short local break for less than R4,000*, while longer regional and international escapes become possible with a bigger budget and a longer savings runway. After all, a trip that feels impossible as one large expense can look very different when it’s broken into manageable monthly amounts.
“Affordability is personal, which is why holiday planning shouldn’t begin with a destination pulled from someone else’s bucket list,” says Turner. “Start with an amount you can save comfortably and consistently after covering your essential expenses, updated debt repayments, and emergency provision. If that amount is R500 a month, don’t dismiss it as ‘too little’. Over a year, it becomes R6,000 – enough to cover certain short local breaks for two at today’s prices. Start with the number that works for your household, give it time to grow, and then choose the holiday that fits.”
A current holiday price ladder for two
The examples below are based on selected Flight Centre package prices available at the time of writing.
| Current package benchmark for two | Total package price | Save over 3 months | Save over 6 months | Save over 12 months |
| Two nights in Oudtshoorn with breakfast, excluding transport | R3,805* | R1,268 | R634 | R317 |
| Two midweek nights at Sun City with breakfast, excluding transport | R4,515* | R1,505 | R753 | R376 |
| Three nights at The Rockefeller Hotel in Cape Town, excluding transport | R5,215* | R1,738 | R869 | R434 |
| Three nights at the five-star Capital Zimbali, excluding transport | R7,675* | R2,559 | R1,280 | R640 |
| Four nights at Machangulo Beach Lodge in Mozambique, excluding transport | R24,656* | R8,219 | R4,110 | R2,055 |
| Seven nights at an adults-only Mauritius resort, including flights | R40,106* | R13,370 | R6,684 | R3,342 |
It’s important to remember that the lowest headline price isn’t automatically the most affordable holiday. Turner cautions:
“Travellers need to compare what their money actually covers. A package that includes flights, transfers, and meals may offer greater cost certainty than a cheaper option that leaves most expenses to be settled in foreign currency. The rand can be volatile, so knowing that a large portion of the trip has already been paid upfront can make the final cost easier to predict and protect your budget from unwelcome surprises.”
There’s also one more important catch: current travel offers have specific booking deadlines and travel periods. A package available today may expire long before someone following a 12-month savings plan is ready to travel.
The figures above should therefore be treated as an indication of what different holiday categories cost now, not a guarantee that the identical package will be available at the same price in future.
The best holiday is one you can afford to enjoy
“There’s no single amount that makes someone ‘able to afford travel’,” Turner concludes. “For one household, success might be a R4,000 road trip. For another, it might mean saving for 18 months towards an international holiday. The win is being honest about the numbers, allowing enough time, and choosing an experience that leaves you with good memories – not months of financial stress.”
Stabilising inflation may not put cheaper holidays on the departures board immediately. But if it brings a little more predictability to household budgets, it could help many South Africans replace “maybe one day” with a date, a monthly target, and a holiday that truly fits.
*Based on Flight Centre holiday packages as of 21 October 2026
FLIGHT CENTRE TRAVEL GROUP SOUTH AFRICA
Flight Centre Travel Group (FCTG) SA is part of Flight Centre Travel Group, an Australia-based international travel company listed on the Australian Stock Exchange, with a market cap of AU$2,31 billion and a current share price of AU$11.42 as of 22 October, 2026. FCTG with three leading brands: Flight Centre, Corporate Traveller and FCM, of which Corporate Traveller and FCM are proud level 1 BBBEE Contributors. FCTG SA is wholly owned and has been recognised as one of Deloitte’s Best Companies to Work for in South Africa for over a decade.