Revenue per available room sees growth

Analysing the booking performance of over 4,500 rooms in hotels, guesthouses, B&Bs, and other independent properties in South Africa, RoomRaccoon revealed that revenue per available room (RevPAR) in January 2025 climbed 8% year-on-year, rising from R1,477 in 2024 to R1,593 in 2025.

This growth is fueled by a surge in the average daily rate (ADR), which soared to an average of R2,864—an impressive 16% jump from the previous year. The peak ADR reached R3,480 on 2 January 2025.

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Guests are booking longer stays

RoomRaccoon also observed a shift toward longer stays in South Africa.

While 57% of guests booked a single-night stay (-3% from the previous year), longer stays saw an uptick: 20% booked for two nights, 10% for three nights (+1%), 5% for four nights (+1%), and 7% opted for five or more nights (+1%).

“We’re seeing a stabilisation in the revenge travel boom, as occupancy rates decrease slightly from 60% in January 2024 to 56% in January 2025. However, our data shows that guests are staying longer, creating more opportunities for hotels to boost revenue from other areas of their property,” says Niels Verspui, market head of RoomRaccoon South Africa.

Ancillary revenue is on the rise

RoomRaccoon’s data shows that hotels generated an additional R99.5m in January 2025 from add-ons like airport shuttles, guided tours, game drives, and special packages—up from R73.7m in January 2024.

“By selling add-ons through the website booking engine and online check-in, hotels are unlocking new ways to increase earnings beyond room bookings,” says Verspui.

Monetising all aspects of a property

“A key hospitality trend we’re seeing in 2025 is the monetisation of all aspects of a property. With RoomRaccoon’s Grey Rooms feature, our users sell alternative spaces like secure parking and extended pool access after check-out as add-ons.”

By tapping into underutilised spaces and services, independent hoteliers can create new income streams while offering guests greater convenience and flexibility during their stay.