As the summer tourism season winds down, the latest South African Summer Hotel Performance Report for 2024, released by RoomRaccoon, showcases notable shifts in the accommodation landscape.

The comprehensive analysis draws from over 4,500 rooms across independent hotels, bed and breakfasts, guesthouses, and lodges, capturing key performance trends from December 1, 2024 to February 28, 2025, while providing insightful year-on-year comparisons.

According to the report, hoteliers are increasingly capitalising on their offerings beyond just room bookings amidst a dynamic travel environment. It also revealed that RoomRaccoon users garnered a staggering R48 million in ancillary revenue, marking a remarkable 27% increase from the previous year.

"The leading add-on for guests was food and beverage, followed closely by room upgrades, wellness treatments and tailored experiences," noted RoomRaccoon.

They added: "This surge reflects a growing trend where hotels are embracing creative ways to enhance guest experiences while boosting their bottom line."

Shifts in guest behaviour

The report also reveals a significant change in guest booking patterns. Notably, short-term stays are waning, with one-night bookings experiencing a 3% decline since last year. In contrast, longer stays - the three, four and five-night bookings - each experienced a 1% uptick, signifying a shift towards extended getaways. This trend suggests that travellers are increasingly drawn to immersive experiences rather than brief escapes.

Room rates have also seen considerable growth, with South Africa’s Average Daily Rate (ADR) climbing by 13%, reaching R2,784. This increase underscores the ability of hotels to command higher room rates in a competitive market, revealing a robust recovery post-pandemic.

The data further highlights an emerging trend regarding advance bookings. The average lead time has extended by 10 days, increasing from 41 days in the previous summer season to 51 days this year. December 2024 recorded the longest booking window at 58 days, as eager travellers secured their festive accommodations ahead of time.

Adapting to competition

"South African hotels have faced fierce competition from short-term rentals, but they're proving their resilience with smart revenue strategies," stated Niels Verspui, the market head of RoomRaccoon South Africa. "By optimising pricing and unlocking new revenue streams, they’ve boosted Revenue Per Available Room (RevPAR) by 4% and generated over R200,000 each in ancillary revenue."

One particularly intriguing trend is how hoteliers are cleverly repurposing underutilised areas within their establishments to create new revenue channels. According to the report, one in four RoomRaccoon hoteliers has transformed spaces such as cafés into thriving coworking hubs or begun offering wellness and pool day passes. There is also a growing interest in utilising venues for events and meetings, showcasing the industry's evolution towards maximising every square metre of commercial space.

In conclusion, the South African Summer Hotel Performance Report 2024 not only highlights the resilience of hotels in overcoming challenges posed by the rise of short-term rentals but also emphasises their innovative approaches to creating diverse revenue streams. As the future of hospitality continues to evolve, the focus is clearly shifting towards providing holistic experiences that go beyond mere accommodation.