South Africa’s travel gem – with half the price of a Big Mac in London

Johannesburg is a highly attractive travel destination for domestic and international business travellers because, compared to other investment destinations, it offers far better value for money.

This is according to new data from FCM Consulting’s Q3 Trend Report 2024, which compared the pricing of different items at travel destinations across the world.

For example, the report found that a Big Mac in London costs nearly double what you’d pay in Johannesburg. 

“It’s a quirky but telling way to understand cost differences around the world – and when it comes to business travel, those differences are eye-popping,” GM of Corporate Traveller Bonnie Smith said.

“The Big Mac comparison perfectly captures what the report shows us in business travel costs.

Same product, same quality, wildly different price tags depending on where you are.”

According to the report, a business traveller can check into a sleek business hotel in Sandton for $130 a night, up 14% compared with Q2. 

In London, a traveller would pay $315, up 29%, for an equivalent room. In Paris, it’s $304, and Amsterdam will set you back $267.

Meanwhile, Cape Town holds its own at $172 – which the report found is still a relative bargain on the global stage, despite a quarterly increase of 29%.

The report revealed that the most expensive cities for business travel per region with London, Riyadh ($311), Singapore ($271), and New York ($490leading the pack. 

In contrast, cities offering better value include Jakarta ($139), Mumbai ($151), and Bangkok ($145) alongside Johannesburg. 

Gateway cities like Dubai ($170) and Abu Dhabi ($187) sit somewhere in the middle, reflecting their position as global connection hubs.

The report also considered the cost of car hire and found that a premium sedan in Johannesburg would cost only $23 a day, compared to $65 in Germany. 

“Same car, same features, same international rental company – just a very different number on the invoice,” Smith said.

Another cost that was considered is airfare, which is stabilising globally. Economy seats are down by $16 (-3%), and business class is up by $137 (+6%). 

“Africa’s aviation scene is expanding – which is good news for regional travellers. With 2% more flights and 2.1% more seats, competition is helping keep those prices in check,” Smith said.

The report found that, in August 2024, global airline passenger load factors reached a high of 86.2% as both corporate and leisure demand peaked over the northern hemisphere summer.

Stats SA recently reported routine data collected by the Department of Home Affairs’ (DHA) immigration officers at the ports of entry into and out of South Africa.

This showed that a total of 2,365,952 travellers passed through South African ports in October 2024. 

These travellers were made up of 642,974 South African residents and 1,722,978 foreign travellers. 

A further breakdown of the figures for South African residents showed that there were 336,431 arrivals, 306,103 departures and 440 travellers in transit. 

The corresponding volume for foreign arrivals, departures and travellers in transit was 912,229, 769,916 and 40,833, respectively

Overseas tourists constituted 26.9% of all tourists in South Africa in October. The United Kingdom, USA and Germany constituted 44.9% of overseas tourists. 

Smith explained that, when looking at such significant price variations between markets, smart planning becomes crucial.

“As global travel demand increases, with hotel occupancy in major cities exceeding 50%, the value gap between domestic and international travel costs could widen further,” she said. 

“Companies need to think holistically about their travel programmes. Use the competitive domestic rates as a foundation while working with your travel management company to optimise international travel costs.”