Insights by Hotel Revenue Manager collects data from 16 000 rooms. Various levels of hotels all around the Cape Town metro share their info and we accurately portray the city’s forward book and demand patterns. Trading have changed the past 1-2 years and new patterns have emerged and any hotelier, owner or revenue manager needs as much info as possible, in order to pin rates at anticipated demand to get the best possible conversion. Whilst we realise some upper segment hotels might not be anywhere close to this report one should take note of overall market movement as the same will apply but at different ADR or Occ levels.
September reports have been finalised at 54% occupancy (vs 48% for Aug). The pace was slow the first 10-15 days but demand ramped the last few days of Sep and hopefully you didn’t leave too much ‘money on the table’ by reading our updates. The month gained 20% in occ from 34% on the 1st to 54% on the last day. The ADR however dropped from R1 171 mid Sep to R1 141 at the end which is indicative of additional deals loaded and or last minute rate drops to ‘take what they can get’ . Nonetheless its improved from Aug.
Oct starts the month at 42% and 8% higher in occ vs Sep. Oct grew from 31% on 1 Sep to 42% at the 1st of Oct. The first few days looked promising but the school holidays haven’t produced much and last week were mediocre with a few high dates but overall nothing special. Week 3 of Oct is looking grim as well and we see an increase in deals loaded for the abovementioned dates, this only mean that business is slow. The hotels in V&A and CTICC district is doing better than rest of town. Oct’s ADR is at R1352 but dropped since the beginning of Sep which explains the discounting factor and lower rates.
‘shall we try again – November’ the same occurrence is noted in that prices are particularly high but we are certain it will reduce as we enter the month. We however gained 8%age points since 1 Sep and the rate have been stable the past 3 weeks at around R1 444.
Unfortunately majority of hotels’ forward book compared to last year are still 25-35% shy of what we held this time last year. We advise to price realistically, adjust slightly when demand increase but test continuously to ensure your offering reach as far as possible and appeals to single travellers and families alike.
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