The allure of sun-soaked beaches, scenic safaris, and vibrant cities is propelling independent hotels in South Africa into a promising summer travel season.
Recent data from RoomRaccoon, a hotel management software provider with a robust presence in the boutique hotel sector, revealed that these establishments are witnessing a commendable surge in revenue.
The hotel management software provider said that as the summer holidays approach, operators are optimistic despite a slight dip in occupancy rates.
“Revenue per available room (RevPAR) significantly increased by 12% year-on-year, climbing from R1 197 in 2023 to an impressive R1 348 in 2024,” said RoomRaccoon.
It added that this promising trend is largely attributed to a substantial rise in the average daily rate (ADR), which has surged from R1 961 to R2 325 over the same period.
However, not all indicators provide bright news. The company said that average occupancy rates have seen a decline, dropping from 61% in 2023 to 58% in 2024.
This downward shift may correlate with the notable 10% decrease in international arrivals reported for September, as highlighted in South Africa's latest International Tourism Report.
Niels Verpsui, the Market Head of RoomRaccoon South Africa, said that sustaining the upward revenue trend will require a delicate balance of maintaining ADR growth while optimising occupancy from local and international travellers across the sector.
“Getting rooms booked ahead of the peak season will be crucial for independent hoteliers to avoid losing revenue from unoccupied rooms. But it’s not just about filling rooms — it’s about filling them profitably without driving potential guests away with overpricing,” he asserted.
To combat these challenges, Verpsui advocated the use of dynamic pricing tools which can streamline the booking process, increase accuracy and adjust rates to remain both competitive and profitable.
He highlighted that as traditional methods in hotel management evolve, embracing technology becomes indispensable in attracting discerning travellers.
Lastly, Verpsui said that the emergence of digital nomads poses a unique opportunity for the hospitality industry.
“The introduction of South Africa’s remote work visa presents an opportunity for hotels to boost occupancy with more sustainable, long-stay bookings.
“Independent hotels should consider offering long-stay packages to their summer offering to attract this growing segment and increase overall occupancy,” he said.