South African Summer Hotel Performance Report 2025
From Sho’t Lefts to Long Stays
South Africa’s summer season always brings a wave of travel excitement, and this year was no exception. From Sho’t Lefts to Long Stays, we saw new booking trends, changing guest behaviours, and hoteliers stepping up their game to maximise revenue.
Yes, competition is heating up—alternative accommodation is growing, and travellers have more choices than ever. But independent hotels are proving their edge. Direct bookings surged by 24%, showing that guests prefer the personal touch of boutique hotels, guesthouses or lodges —where smooth check-ins, curated extras, and a stay that’s more than just a room make all the difference. And while occupancy took a slight dip, smarter pricing pushed ADR up by 13%, helping hotels grow RevPAR despite the shift.
One trend we love? Hoteliers are getting creative with revenue. From upselling room upgrades to monetising underused spaces, properties are making the most of every opportunity—because why leave money on the table?
At RoomRaccoon, we’re all about helping independent properties do more—more bookings, more revenue, more efficiency. This report is packed with data-driven insights to help you stay ahead in this evolving market.
Here’s to a summer of smart moves and even bigger wins next season!
Market Head, RoomRaccoon South Africa
Report Overview
This report provides a data-driven look into South Africa’s independent hotel trends, covering key performance metrics from December 2024 to February 2025, compared to the same period in 2023 – 2024. Analysed from over 4500 rooms in active properties across South Africa, this report reveals occupancy trends, booking behaviours, revenue insights, and add-on performance to help hoteliers stay ahead in a competitive market.
Occupancy
This summer, South Africa’s hotels felt the heat—not just from the sun but from rising competition. The average occupancy rate was 57%, marking a 6-point drop from the previous year. This could be attributed to the growing dominance of alternative accommodations like Airbnb, which now has 18,264 active listings in Cape Town alone—outnumbering the combined totals of Amsterdam, San Francisco, and Singapore.
Traditional accommodations—independent hotels, guesthouses, and lodges—can counter airbnbification by partnering with tour operators, tapping into major distribution platforms like HyperGuest, and crafting all-in-one packages that bundle stays, dining, and experiences for a seamless, hassle-free guest experience.
Faster Visas, More Tourists:
TTOS Launches in South Africa
Good news for accommodation providers! The Trusted Tour Operator Scheme (TTOS) launched on February 12, streamlining visa applications for Chinese and Indian travellers using approved tour operators. With visas processed in just 6 hours, South Africa aims to attract more visitors from these key markets, tapping into a tourism potential of over 100 million travellers annually.
To capitalise on this opportunity, we recommend connecting with tour operators at trade shows and listing your properties on OTAs that cater to these markets.
Top OTAs to tap into the Indian & Chinese travel market
Average Daily Rate (ADR)
Guests are paying more for rooms—but just how much more?
South Africa’s ADR climbed 13% compared to the previous summer season – an increase of R331 – averaging R2784.
The increase in ADR indicates that hotels are commanding higher rates for their rooms, potentially to offset the dip in occupancy.
A well-executed competitor pricing strategy can help maximise ADR without pricing out demand. For instance, setting a dynamic pricing rule that adapts in real-time to competitor price changes or availability shifts. This approach ensures your rates stay competitive while capturing maximum revenue!
Revenue per Available Room (RevPAR)
Let’s talk profitability—because at the end of the day, a hotel at 70% occupancy can still generate more revenue than a fully booked one.
And this year’s insights prove just that!
RevPAR increased by 4% year-on-year —R60—driven by higher ADR , suggesting that hotels are pricing smarter to capitalise on seasonal demand.
Despite the slight drop in occupancy rates, the higher room rates helped hotels grow RevPAR from R1541 to R1601.
2,197
February is the strongest summer month for RevPAR, driven by romantic getaways, peak summer demand, and major events like Cape Town’s Mining Indaba.
Average length of stay
Guests are stretching their summer stays! In 2024/2025, one-night bookings dipped by 3% , while three-, four-, and five-night + stays saw a 1% boost each.
Total bed nights shot up 25% year over year. This suggests one of two things—either leisure travellers are booking longer stays, or hoteliers are getting smart with minimum stay restrictions to boost revenue.
And it’s a clever move. Longer stays means lower operational costs per booking and better revenue per guest. Whether it’s demand-driven or a strategic play, it’s a win-win for hotels.
Pro Tip
“Want to boost your revenue without blocking one-night stays? With RoomRaccoon, you can set a one-night stay surplus rate—charging a higher rate for single-night bookings while offering a better deal for longer stays.”
— Chantelle, Revenue Management Product Owner at RoomRaccoon.
Booking lead time
Guests aren’t taking any chances—bookings are coming in earlier. Booking lead time has jumped 10 days, from 41 days in summer 2023/2024 to 51 days this summer. December 2024 saw the longest booking window at 58 days, as holidaymakers locked in their stays early to secure the best spots for the festive season.
This trend aligns with the rise in extended stays and higher-value trips in 2025. When travellers plan for longer getaways, they book earlier to snag the best accommodations, ensuring a seamless and stress-free experience.
51 days +10 days YoY
“Hoteliers can optimise booking lead time by applying a stop-sell on non-refundable rates 24–30 days before arrival. This strategy locks in early-booking revenue while keeping last-minute availability open for higheryield standard rates.” — Chantelle, Revenue Management
Owner at RoomRaccoon.
Pro Tip
Direct bookings vs indirect bookings
South African hotels are seeing a surge in bookings, with total summer reservations jumping from 53K in 2023/2024 to 67K in 2024/2025—a solid 25% increase. International arrivals are also climbing, reaching 8.9M in 2024, up 5% since last summer. And with Cape Town named the Best City in the World for 2025, it’s easy to see why the destination is drawing even more global attention.
The split between direct (63%) and indirect (37%) bookings remains unchanged, showing growth across both channels. What’s especially encouraging is that direct bookings—including those from a hotel’s booking engine, walk-ins, emails, and phone reservations—have grown by 24% year-on-year, giving hoteliers more control over the booking experience and reducing OTA commission costs.
For hoteliers, the direct booking trend underscores the importance of investing in user-friendly booking engines, best-value direct rates, strong digital marketing, and direct booking incentives.
More direct bookings mean fewer commission costs to OTAs and more control over the guest experience—something every independent hotelier can appreciate.
Top booking channels
How are South African hoteliers slicing the booking pie? When it comes to booking channel distribution, direct bookings continue to take the lead, followed by OTA powerhouses Booking.com and Expedia.
Interestingly, Airbnb, which previously held the fourth spot, was overtaken by Agoda in the summer of 2024/2025.
Among the standout players? Google Hotels—the metasearch giant funnelling travellers straight to hotel websites. With an 89% yearon-year increase in bookings, it’s quietly helping hoteliers nudge more reservations away from OTAs—one click at a time.
Upsell and cross-sell performance
A comfortable and aesthetically pleasing room? Non-negotiable. But let’s be honest—South African property managers know that the real magic happens in the extras. The experiences that turn a stay into a story. And guests aren’t just enjoying them—they’re spending on them.
Case in point: ancillary revenue from upselling and cross-selling (think indulgent experiences, seamless services, and that extra glass of wine) jumped from R38M in summer 2023/2024 to R48M in summer 2024/2025.
Top add-on categories in summer
2023/2024
Food & Beverage
Spa & Wellness
Transport & Parking
Room Upgrades & Extras
Event Services
2024/2025
Food & Beverage
Room Upgrades & Extras
Spa & Wellness
Experiences & Activities
Transport & Parking
9
Alternative space sales performance
If you’ve got it, monetise it . We’re talking about alternative hotel spaces, of course. These underutilised areas are becoming serious revenue boosters, with 1 in 4 RoomRaccoon hoteliers cashing in using the grey room functionality. And the result?
A cool R3 million in summer 2024/2025. A big trend in hotels for 2025 is having flexible spaces, according to Pxier. A cosy café can be used in the morning and turned into a nice workspace or meeting place in the afternoon. This helps hotels use their space better and make more money.
R 3,000,000.00
Popular alternative spaces hotels are monetising
Day visitors – Think coworking spaces, pool access, or wellness day passes.
Conference & meeting rooms – From corporate meetings to brainstorming sessions, these spaces are always in demand.
Event spaces – Weddings, private dinners, workshops—you name it, hotels are hosting it.
About RoomRaccoon
Since 2017, RoomRaccoon has been South Africa’s leading all-in-one hotel management system. With an office in the heart of Cape Town overlooking Table Mountain and seamless local integrations with SafariNow, Peach Payments, and TabletPOS, we’re proudly rooted in Mzansi’s hospitality scene.
We help independent properties make more—more bookings, more revenue, more efficiency. Join our gaze for smarter property management!
