South Africa’s RevPAR up 12% YoY leading up to the summer despite dip in occupancy
Independent hotels in South Africa are seeing a notable increase in revenue as the summer travel season approaches, according to RoomRaccoon, a hotel management software provider supporting over 4500 rooms in boutique hotels, bed and breakfasts, lodges, and independent properties across the country.
Revenue per available room (RevPAR) rose 12% year-on-year, increasing from R1,197 in 2023 to R1,348 in 2024. This growth is driven by a significant R363 rise in average daily rate (ADR), which climbed from R1,961 in 2023 to R2,325 in 2024 during the same period.
Although RoomRaccoon users have seen a rise in revenue, average occupancy rates dipped slightly, dropping from 61% in 2023 to 58% in 2024. This trend likely reflects reduced international travel, with South Africa’s latest International Tourism Report noting a 10% year-on-year decrease in overseas arrivals for September.
According to Niels Verpsui, the Market Head of RoomRaccoon, sustaining the upward revenue trend will require a delicate balance of maintaining ADR growth while optimising occupancy from local and international travellers across the sector.
“Getting rooms booked ahead of the peak season will be crucial for independent hoteliers to avoid losing revenue from vacant inventory. But it’s not just about filling rooms—it’s about filling them profitably, without driving potential guests away with overpricing,” says Niels Verspui, Market Head of RoomRaccoon South Africa. “Dynamic pricing tools can make this easier by automating the process, improving accuracy, and keeping rates both competitive and profitable.”
He also highlights the importance of catering to digital nomads. “The introduction of South Africa’s remote work visa presents an opportunity for hotels to boost occupancy with more sustainable, long-stay bookings. Independent hotels should consider offering long-stay packages to their summer offering to attract this growing segment and increase overall occupancy.”
About RoomRaccoon
RoomRaccoon is an award-winning Hotel Management System trusted by thousands of independent properties across the globe. RoomRaccoon’s cloud-based platform empowers hoteliers with a category-redefining, 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. Founded in 2017 by a hotel owner and tech entrepreneur, RoomRaccoon was recognised as a finalist for the Best Hotel Management Software in the World by Hotel Tech Awards in 2024.
For more information, visit: roomraccoon.co.za
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