SUMMARY – SA HOSPITALITY MID-YEAR REPORT 2023 REVEALS PROMISING GROWTH IN HOTEL REVENUE, DIRECT BOOKINGS, AND EVENT-DRIVEN OCCUPANCY RATES. EXPERTS ADVISE DYNAMIC PRICING AND AUTOMATION TO SEIZE OPPORTUNITIES.
The SA Mid-Year Hospitality Report 2023 presents insightful data from over 3,800 rooms in independent hotels and lodges. Analyzing key hotel performance metrics like revenue per available room (RevPAR), occupancy rate, and booking behavior over the past two years, the report sheds light on encouraging developments in the hospitality industry.
Hotels have experienced a substantial revenue increase, up by 106% from December 2021 to December 2022. RoomRaccoon’s data indicates that this growth can be attributed to hotels effectively upselling room upgrades, providing guests with enhanced experiences.
Direct Bookings Show Strong Growth
Properties witnessed 12% increase in direct bookings, accumulating more than 20,000 direct bookings as per SA Mid-Year Hospitality Report 2023. This trend highlights the success of hotels in persuading guests to book through their websites. That is showcasing an improvement in their online booking strategies.
The resurgence of events has positively impacted hotel occupancy rates and Revenue Per Available Room (RevPAR). Notably, the Formula E-Prix in Cape Town achieved an impressive 77% occupancy rate, surpassing the annual average by 21%. Additionally, the RevPAR surged to R1,947, exceeding the yearly average by R1,117.
Cape Town has emerged as a preferred destination for longer stays, with visitors commonly opting for three-day stays. This trend is likely driven by digital nomads of travelers visiting the city, seeking extended periods of leisure and work.
SA Mid-Year Hospitality Report 2023 highlights that VCC payments have gained significant popularity, experiencing a substantial 188% increase from May 2022 to May 2023. Notably, South African hoteliers recorded the highest VCC payment transactions in January, totaling 5,136 payments.
Expert Insights on SA Mid-Year Hospitality Report 2023
Niels Verspui, market head of RoomRaccoon Southern and East Africa, emphasizes the importance of data-driven decision-making in the dynamic travel landscape. He suggests that hotels adopt a dynamic pricing strategy to optimize revenue. He also recommends to capitalize on the positive influence of events on occupancy rates and RevPAR.
Niels further advises hoteliers to closely monitor local attractions and events and employ yield management rules to ensure optimal rates during periods of fluctuating demand. Additionally, automating the upsell process can help hotels maximize revenue during bustling periods, presenting an opportunity for growth and success in the ever-changing hospitality industry.