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SA hotel rates jump 40% during Women’s Day long weekend
Hotels across South Africa saw a 40% increase in rates for the August long weekend celebrating Women’s Day, according to RoomRaccoon. The data, derived from reservations of over 4,500 rooms in boutique hotels, B&Bs, and guesthouses nationwide, highlights a significant spike in earnings compared to average winter season rates.
Source: Engin_Akyurt via Pixabay
The average daily rate (ADR) for the long weekend from 8 to 12 August 2024 rose to R1,810, peaking at R2,070 on Friday, 9 August. This is a significant jump from the winter average of R1,287 recorded between 1 June and 12 August and slightly below the year-to-date average of R1,991.
RoomRaccoon data also indicates that independent hotels generated an additional R5.4 million in ancillary revenue over the four-day period. Airport transfers, breakfasts, spa treatments, bottles of wine, and MCC were among the top add-ons purchased.
Niels Verspui, market head of RoomRaccoon, South Africa, comments on the findings: “It’s remarkable to see a long weekend in winter generating results nearly on par with the summer peak season. This rate spike shows that independent hotels and lodges are effectively capitalising on long weekend local demand, even during traditionally slower periods.”
To grow revenue beyond simply increasing ADR, Niels advises hotels to diversify revenue streams and implement smart upselling strategies: “Independent hotels with limited room capacity can’t rely solely on bookings for growth. By offering additional bookable services in the booking journey, RoomRaccoon-run hotels are not only filling rooms but also enhancing their bottom line and achieving substantial gains.”
