As we are in the full swing of winter, the market reported a general consensus of reduced occupancy but in some cases an increased average rate. Cape Town Tourism cited results for April being down in occupancy but up in rate. According to the report, the Atlantic Seaboard had a spur in growth but the sample size from the report represent only 10% of the total accommodation sector. Read the full report here
Our study revealed in April, concluded that it wasn’t all that great and that occupancy reduced more than the CTT report. (read the April report here)
May ended at 40% average occupancy which gained 10% per month after starting on 17% in March, and again we saw a 10-12% rate reduction between April and end May as pricing managers reduce rate approaching end May. Once thing is certain: supply outstrips demand and have been the case for the most recent past. Airport arrivals might be up, issued Visa’s might be up, traffic might be up but the numbers are simply not reflecting in the statistics. The question remain whether the standard industry reporting bodies are using relevant datasets.
Insights takes actual data which reports (usually) the opposite outcomes from standard industry feedback.
Looking at June we see 15% increase in occupancy between end April and end May, these room sales was evident in week 3-7 June reports. We also saw rate increase with 7% , but we can safely say “that was it for June’, the remainder of the month will have accommodation establishments advertising on daddy’s deals!
July is in our sights and it has a stronger start compared to April and May and looking to be an improved month compared to May and June, (provided rates aren’t reduced during the month again).
The forward book from Sept onwards, in most cases indicates we will have a better summer by 10-15% compared to 2019. Ensure you mark up those rates now already (which is a bit too late in fact)
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