Afristay, South African Accommodation Platform, Shuts Down
Travel Platform Succumbs to Economic Headwinds
Afristay, a South African online accommodation platform, ceased operations in early 2025. The company’s closure reflects the ongoing struggles of businesses impacted by the economic climate and the lasting effects of the pandemic within the travel industry.
Pandemic’s Early Impact
The director of Afristay, Rupert Bryant, stated the company downsized significantly by the close of 2023, with roughly 30 bookings each month and just two part-time staff members. As a result, the firm “wound down as part of an internal business decision and concluded operations in an orderly manner.”
The COVID-19 lockdowns substantially affected the company, according to Bryant. Afristay employed a model similar to competitors like LekkeSlaap and Airbnb, linking hosts with travelers looking for lodging. The company distinguished itself through a booking experience focused on South African travelers and booking efficiency.
Afristay initially provided dedicated booking agents for each client. This approach proved effective early on, with roughly 700,000 monthly web visitors in 2019. Bryant mentioned in 2019 that the company aimed for R140 million in bookings that year.
“Before the lockdown, in early March, we were poised to have one of our best months,”
—Rupert Bryant
The pandemic and subsequent lockdowns devastated the business, and the industry as a whole. Web traffic plunged by 96% almost instantly, and sales became nearly nonexistent. “The lockdown put us in an utterly non-operational state,” according to Bryant.
By 2022, the company surveyed the impact of the pandemic on the South African accommodation sector, with 750 of its 15,000 establishments responding. One-third reported a return to normal operations, while 41% were still severely impacted. Furthermore, the pandemic continued to affect employment, with only 53% of respondents returning to normal staffing levels.
Economic Downturn
Afristay’s failure, along with many others, can be attributed to the lack of economic progress in South Africa. This situation resulted in stagnant wages and rising unemployment. Subsequently, average disposable income decreased, which, in turn, affected the rate at which South Africans travel.
Consumers now have 53% less purchasing power than in 2016. Salaries are struggling to keep pace with the cost of living in South Africa. As a result, personal and payday loans are increasingly popular among South Africans; the average household spends 69% of their take-home pay on debt repayment. Data from the Reserve Bank of South Africa indicates that household debt-to-income ratios remain high, further impacting consumer spending and business viability (Source: SARB, 2024).
South Africa has been slow to implement measures promoting international tourism, such as streamlined visa processes. The recent announcement of the Electronic Travel Authorization System and the Trusted Tour Operators Scheme by Home Affairs may have been too late to save many businesses.
Simultaneously, businesses like Airbnb and Booking.com posed a threat to local startups. However, a thriving tourism sector, composed of international and local tourists, could have created a large enough market for all players to prosper.
