Hotel managers in South Africa expect popularity of Africa holidays to continue growing after World Cup
A recent survey revealed how most South African hoteliers felt confident on the continued growth of South Africa holidays to keep blooming long after the end of the World Cup.
Betting on the continued growth of the Africa holidays market, a recent survey of Hotel Managers in South Africa by Horwath HTL, the World’s largest firm of hotel consultants, showed that most are highly optimistic about the success of Africa holidays continuing after the World Cup.
Run on a quarterly basis, the survey asked 86 hoteliers running some of the most popular South Africa hotels to forecast the likely market demand in their hotels for the next quarter, compared to the same period last year. The information is then analysed on the basis of size, star rating and location to achieve the most balanced results.
Overall, 79% of Managers thought that Average Room Rate would stay the same or increase (57% thought it would increase) and the same number thought that Occupancy levels would stay the same or increase, (39% increase, 40% stay the same). Altogether 84% of respondents think that Total Revenue in their hotels will increase or stay the same (60% increase, 24% the same).
When it comes to which hotel categoaries were the most hopeful when it came to the continued success of South Africa holidays; broken down by star rating, all four categories felt confident that Average Room Rate would increase, with the 3 Star and 5 Star segments standing out as the most confident. The majority of respondents from the 3 and 5 Star segments predicted a rise in Occupancy with the majority of responses from both the 1-2 Star and 4 Star properties leaning towards Occupancy levels either remaining static or falling.
“It is encouraging that so many participants feel confident about the immediate future. There was uncertainty in the press and the market before the World Cup about the event, and whether or not Hotels would cope with the demand. As it turns out, those fears were never realised. It’s too early to tell what the lasting legacy will be, but the early signs are promising” - said the lady responsible for the survey, Michele de Witt, Director of Horwath HTL South Africa
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