Nov was a good month and certainly a highlight of 2018 for most, after one of the most challenging years in my opinion. Results shows 60% closing occupancy for Nov at R1 560 average rate after gaining close to 12% in occupancy during the month and R110 in rate for the same period. The month was identified by a good amount of CTICC events that hosted large number of attendees and Africom alone had the city bursting at its seams.
Dec started on a good note but occupancies drop sharply between 10 and 24 December. We start the month with 45% occupancy and 8% lower than what Nov started on. The rate of R1905 already reduced with 5% since last week and we see a flood of deals and availability. The same thing happened last year and you can read more here.
We forecast a small increase from domestic travel as schools only close next week 12 Dec and most working folk will get paid by the end of next week before corporate closes for the year. As it stand now trading is very slow and one should be cautious not to drop rates too deep as the lack of bookings are due limited buyers and not due to high rate values.
January is looking good as usual between 1-5 Jan and ‘ghost town’ rules from 10th onwards. At this stage we are looking at 30% occupancy on the books and stronger than usual rate at R1800 which will certainly reduce as we progress towards 2019.
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.
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