Independent hotels line the Durban north coast, as seen from an aerial view. Picture: Unsplash
Independent hotels across South Africa are welcoming the new year with optimism, as recent data from RoomRaccoon, a prominent hotel management software, highlights a significant upswing in performance metrics.
Analysis of over 4500 rooms across hotels, guesthouses and B&Bs shows that revenue per available room (RevPAR) for January 2025 has risen by an impressive eight percent year-on-year, increasing from R1 477 in 2024 to R1 593 in 2025.
This remarkable growth is primarily driven by a notable surge in the average daily rate (ADR), which soared by 16 percent, reaching R2 864 compared to the previous year.
The peak ADR reached an impressive R3 480 on 2 January 2025, reflecting increased consumer willingness to invest in their travel experiences.
Trend towards longer stays
RoomRaccoon has also identified an intriguing trend in guest behaviour, with a shift towards longer stays at independent properties.
While the proportion of guests booking single-night stays dipped to 57 percent (-3percent from 2024), there has been a marked increase in those opting for extended visits. The number of guests booking stays of:
Two nights: 20 percent
Three nights: 10 percent (+1 percent)
Four nights: 5 percent (+1 percent)
Five or more nights: 7 percent (+1 percent)
“We’re observing a stabilisation in the revenge travel boom, leading to a slight decrease in occupancy rates from 60 percent in January 2024 to 56 percent this year.
“However, our data indicates that while fewer guests are staying for just one night, the trend toward longer stays is presenting new revenue opportunities for hotels,” explained Niels Verspui, Market Head of RoomRaccoon South Africa.
Increase in ancillary revenue
In a further testament to the resilience and adaptability of the hospitality sector, RoomRaccoon’s findings reveal that independent hotels generated an additional R99.5 million in January 2025 from ancillary services such as airport shuttles, guided tours, game drives, and special packages, a significant increase from R73.7 million in January 2024.
“Hotels are finding creative ways to enhance income by offering add-ons through their booking engines and during online check-ins,” Verspui noted.
“A key trend we are observing in 2025 is the monetisation of all facets of a property. With RoomRaccoon’s Grey Rooms feature, our users can capitalise on underutilised spaces such as secure parking and extended pool access as add-ons.”
By tapping into these previously underused areas and services, independent hoteliers are not only bolstering their revenue streams but also providing guests with enhanced convenience and flexibility during their stays.