Independent hotels in South Africa have achieved a new precedent in revenue per available room (RevPAR) performance over the festive season, measuring R2197 on 31 December 2023 – the highest volume recorded RoomRaccoon since it launched its South African division in November 2017.
The data analysed the booking data from over 4500 rooms in boutique hotels, B&Bs and guesthouses using RoomRaccoon’s leading hotel management software across the country.
According to RoomRaccoon, 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 R2560 in 2022 to R2890 in 2023.
Commenting on the data is Niels Verspui, Market Head of RoomRaccoon South Africa: “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,” he says.
He recommends 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. This ensures that room rates are adjusted dynamically, maximising revenue during peak periods and maintaining competitiveness during slower times.”
Niels Verspui recommends adopting 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.”
RoomRaccoon is an award-winning Hotel Management System trusted by thousands of independent properties across the globe. RoomRaccoon’s cloud-based platform empowers hoteliers and accommodation providers with a comprehensive range of products and solutions to increase revenue, streamline operations, and enhance the guest experience. And with over 400 integrations, RoomRaccoon is one of the most connected solutions on the market.