SA HOTELS CASH IN HIGHER RATES AND LONGER STAYS THIS SUMMER

Longer stays, more money

RoomRaccoon, a leading hotel management system for independent hotels, recently released its annual SA Summer Hotel Performance Report 2025.

Drawing insights from over 4 500 rooms across independent SA hotels, B&Bs, guesthouses, and lodges across the country, the report examines key performance trends from 1 December 2024 to 28 February 2025 and provides a year-over-year comparison to highlight shifts in the market.

According to the data, hotels are becoming increasingly adept at diversifying revenue streams beyond room bookings.

Capitalising on upsell and cross-sell opportunities, RoomRaccoon users earned R48 million in ancillary revenue over the summer months, marking a 27% increase from the previous year.

The most popular add-on was food and beverage, followed by room upgrades, spa and wellness treatments, experience and activities and transport and parking. 

Key findings

Some other key findings in the report included:

• An increase in longer stays: One-night bookings saw a 3% decline year-over-year, while stays of three, four, and five or more nights each increased by 1%, signalling a shift toward extended getaways.

• Increase in room rates: South Africa’s Average Daily Rate (ADR) climbed by 13% from the previous summer season, rising by R331 to an average of R2 784. This indicates that SA hotels are effectively commanding higher room rates.
• Guests are booking longer in advance: The average booking lead time extended by 10 days, from 41 days in summer 2023/2024 to 51 days this season. December 2024 had the longest booking window at 58 days, as travellers secured their festive season stays early.

Did you travel or book hotels over the summer?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.

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2025-03-27T11:29:32Z