According to Room Raccoon, a hotel management software provider that supports more than 4,500 rooms in boutique hotels, B&Bs, lodges and independent hotels across the country, independent hotels in South Africa are seeing a noticeable increase in revenue as the summer travel season approaches. It is said that there is.
Revenue per available room (RevPAR) increased by 12% year-on-year, from R1,197 in 2023 to R1,348 in 2024. This growth was driven by a significant R363 rise in the average daily room rate (ADR), rising to R1,961 in 2023 and R2,325 in 2024 over the same period.
Although revenue for RoomRaccoon users increased, average occupancy decreased slightly, from 61% in 2023 to 58% in 2024. This trend is thought to reflect a decline in international travel, which is 10% year-on-year in South Africa's latest international tourism report. The number of overseas arrivals in September decreased compared to the previous year.
According to Niels Verpsui, Head of Markets at RoomRaccoon, maintaining the upward trend in revenue requires a delicate balance between maintaining ADR growth while optimizing domestic and international traveler occupancy across the industry. You will need it.
“For independent hoteliers, it is important to book rooms before peak season to avoid revenue losses due to empty inventory. It’s important to profitably fill rooms without alienating potential guests,” said Niels Verspui, market director at RoomRaccoon South Africa. “Dynamic pricing tools make it easy to do this by automating processes, improving accuracy, and keeping rates competitive and profitable.”
He also emphasizes the importance of accommodating digital nomads. “The introduction of South Africa’s remote work visa is an opportunity for hotels to increase occupancy through more sustainable long-stay bookings.Independent hotels are looking to attract this growing segment and increase overall occupancy. You should consider offering extended stay packages for your summer services.”
About Room Raccoon
RoomRaccoon is an award-winning hotel management system trusted by thousands of independent properties around the world. RoomRaccoon's cloud-based platform provides hoteliers with comprehensive, category-redefining products and solutions to increase revenue, streamline operations, and improve the guest experience. Boasting over 400 integrations, RoomRaccoon is one of the most connected solutions on the market. Founded in 2017 by a hotel owner and technology entrepreneur, RoomRaccoon was named a finalist for the World's Best Hotel Management Software at the Hotel Tech Awards in 2024.
For more information, please visit roomraccoon.co.za.
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