The hotel industry in South Africa is embarking on a new era of travel, driven by an increase in international arrivals and evolving traveller preferences, according to a new report by SiteMinder, a software platform that aims to unlock the full revenue potential of hotels.
The report, SiteMinder’s Hotel Booking Trends, shows that international guests made up more than half (56%) of hotel arrivals in 2023, reflecting a year-on-year growth rate of 21%. Additionally, the report found that the average daily rate for South African properties increased by 21% to US$202, surpassing the global average increase of 11%.
Hotel booking channels Wilderness Window, Tourplan, followme2AFRICA and Thompson Holidays grew in popularity to comprise a third of the country’s top 12 hotel booking sources, and highlighted a growing demand for experience-driven trips.
Other key findings from SiteMinder’s annual report include:
- Travellers booked their stays sooner, despite the rise in prices. The average lead time between hotel bookings and check-ins increased by 36% to 37 days, almost doubling the global average rise of 19%.
- Cancellation rates in 2023 remained steady at 24%, maintaining a significant decrease from the rates seen in 2020 and edging closer to the 2019 level of 23%.
- The greatest number of travellers arrived in December. Eleven percent of travellers arrived this month, while the quietest month for check-ins was June.
SiteMinder’s Chief Growth Officer, Trent Innes, said the findings highlighted the need for hoteliers to be dynamic and likewise cautioned against anticipating the return of known travel trends.
“SiteMinder’s data shows that while travellers have regained their confidence and international travel is returning, traveller behaviours and preferences have changed. Today’s traveller is not the same traveller of years past,” said Innes.
“We know through our data that travellers are booking further ahead than before. We also know that travellers are happy to spend money beyond the cost of their room, but that increased prices are forcing them to adapt by opting for package deals, as an example. It’s therefore vital that hoteliers are dynamic in the way they do business, to ensure they keep pace with their customers and understand how every customer touchpoint is a revenue opportunity.”
Top 12 booking sources for SA hotels
SiteMinder’s top 12 hotel booking sources, based on the total gross revenue they generated via SiteMinder’s platform in 2023, were:
- Booking.com
- Hotel websites (direct bookings)
- Expedia Group
- Hotelbeds
- Agoda
- Tourplan
- Wilderness Window
- Global distribution systems
- followme2AFRICA
- Thompsons Holidays
- Airbnb
- WebBeds
SiteMinder’s Hotel Booking Trends is based on the booking data of SiteMinder’s more than 40 000 hotel customers, which in 2023 used SiteMinder’s platform to secure more than 115 million bookings valued at more than US$45 billion in revenue.
The full report is available here.
