Hotels in South Africa

Contribution to travel accomodation sales in SA

Hotels continued to contribute significantly to the overall travel accommodation sales during 2013 as the category increase in current value by 6% to reach R10.2 billion. Hotel comprised 66% of the total travel accommodation value sales during 2013, with growth driven mainly by chained hotels, where occupancy continue to increase as a result of effective collective marketing campaigns. In addition, improvements in the relationships between the operators of travel accommodation outlets and South Africa’s travel retailers have also been instrumental in pushing growth in the category in recent years as travel retailers often play a major role in terms of recommending travel accommodation outlets to their customers.

Decline & growth

Hotels in South Africa is set to decline in value at a CAGR of -1% in constant 2013 terms over the forecast period. Fluctuations in average room rates are expected to be a key determinant of value growth for the majority of hotels operating in the country during the forecast period. 5-star hotels are expected to see significant value growth despite the overall slow growth expected across the category, with this success for 5-star hotels likely to be driven by high room rates, which help to offset missed opportunities during periods of low occupancy.

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