Post-World Cup Blues

A recent survey has revealed that post-World Cup blues may be affecting South African hotels as concern over low occupancy prevails.

Results from the latest edition of Horwath HTL Global Hotel Market Sentiment Survey, shows that hotel operators in all world regions believe that while recovery is on track, they don’t think the worst is over. South Africa’s results reflect this view, with hoteliers disappointed with occupancy growth when compared with previous expectations.

The survey, which is carried out every six months, aims to gauge the driving forces behind industry sentiment. Michele de Witt, director of Horwath HTL in South Africa said, “The survey findings confirm what we have been experiencing on the ground, that conditions continue to be tough and that while indications are that average room rate and total revenues have begun to rebound, owners and operators remain concerned by low occupancy levels.”

In its annual results, City Lodge confirmed that although occupancies during the World Cup were satisfactory considering the late cancellation of a large number of bookings by MATCH, they were not as favourable as originally expected, particularly outside of Gauteng. “Trading after the World Cup final on July 11 has been disappointing amid clear evidence that normal business travel patterns have not yet resumed,” said ceo, Clifford Ross.

However, there is some optimism as the industry considers the best way to deal with the current market conditions. According to Clive Bennett, md of The Red Carnation Hotel Collection, “The key issue now is to ensure one’s business is fully aware of the choices in its competitor set, and really demonstrates and effectively promotes and sells the meaningful point of difference over competitors; that the value one is offering to the client is meaningful and well articulated and ensure the relationships and their trust with the hotel’s delivery is unquestionable and beyond doubt.”

Source: SA Tourism Update