SA hotels experience record-breaking RevPAR over festive season

Source: mrsiraphol via Freepik

On 31 December 2022, the average RevPAR measured R2,023 – the highest volume recorded by hotel management software company, RoomRaccoon since it launched its South African division in November 2017.

The record-breaking figure comes as a result of increased hotel occupancy over the new year period which surged to 79% on 31 December, in combination with a 20% increase in ADR (average daily rate), from R2,116 in 2021 to R2,560 in 2022.

Commenting on the data and the industry’s recovery, Niels Verspui, market head of RoomRaccoon South Africa, says: “This year was undoubtedly a turning point for the travel and tourism industry in South Africa. The increase in RevPAR indicates that hotels are generating better revenue for their spaces by capitalising on high occupancy rates over the festive season to make up for lost revenue on account of the pandemic.”

RoomRaccoon’s data monitors over 4,500 rooms in boutique hotels, B&Bs and guesthouses across the country and currently reflects continued upward momentum going into 2023 with average occupancy rate and RevPar exceeding that of December 2022.

“Although this is very encouraging news, the strong economic headwinds and rising inflation could weigh the pace of recovery in the new year with ADR expected to increase again to compensate for inflation and rising operational costs,” he says.

Verspui recommends that hotels pay close attention to market data to capture demand and maximise revenue despite uncertain economic times: “Revenue management tools can help hotels remain competitive by automating rates across distribution channels, ensuring that they sell time-limited inventory at the best price to maximise revenue.”