SA’s independent hotels hit record-breaking revenues during festive season

Independent hotels in South Africa recorded good numbers this festive season. Picture: Pexels.

Independent hotels in South Africa recorded good numbers this festive season. Picture: Pexels.

Published Jan 4, 2024


Independent hotels in South Africa achieved a new precedent in revenue per available room (RevPAR) performance over the festive season.

According to RoomRaccoon, a leading hotel management tracking resource, independent hotels saw revenue per available room of R2 197 on December 31, the highest volume recorded on the platform, since it launched its South African division in November 2017.

RoomRacoon analysed the booking data from over 4 500 rooms in boutique hotels, B&Bs and guest houses across the country.

RoomRaccoon revealed that independent hotels in South Africa reported a 9% increase in RevPAR, the standard metric for measuring top-line performance, on New Year's Eve compared to 2022.

“This increase can be attributed to consistently strong occupancy rates, which measured 76% in 2023 compared to 79% in 2022, as well as a notable increase in average daily rate (ADR), climbing from R2 560 in 2022 to R2 890 in 2023,” said the hotel management system.

Commenting on the data, Niels Verspui, market head of RoomRaccoon South Africa explained that the increase in RevPAR indicates the South African hotel industry’s success in optimising revenue, by capitalising on sustained high occupancy in 2023 over the festive season.

Going forward in 2024, he recommended that hotels leverage dynamic pricing technology to maximise revenue per available room in 2024.

“By implementing smart technology, hoteliers can leverage sophisticated algorithms that understand supply and demand dynamics in real-time,” Verspui said.

“This ensures that room rates are adjusted dynamically, maximising revenue during peak periods and maintaining competitiveness during slower times.”

Verspui also recommended that hotels adopt technology solutions like RaccoonRev.

“These tools empower hoteliers with effective competitor analysis and the ability to implement dynamic pricing strategies with Yield Manager to ensure they provide the best value to customers while maximising revenue,” he said.