Hotels - Southern Africa | Statista Market Forecast

In Southern Africa, the revenue of the Hotels market is predicted to reach US$1.22bn by 2024.
Furthermore, it is projected to exhibit an annual growth rate of 5.10% between 2024 and 2029, resulting in a market volume of US$1.56bn by 2029.
The number of users in this market is expected to increase to 9.11m users by 2029.
In 2024, the user penetration rate is 10.2% and is expected to rise to 12.4% by 2029.
The average revenue per user (ARPU) is expected to be US$170.80.
By 2029, 71% of the total revenue generated in the Hotels market will be through online sales.
In comparison to other countries, United States is expected to generate the most revenue, with a projected revenue of US$111bn in 2024.
In Southern Africa, luxury safari lodges are gaining popularity among tourists seeking unique and immersive hotel experiences.

Definition:

The Hotels market includes hotels and professionally-run guest houses. These accommodations can be booked directly via the providers website, through a tour operator, a travel agency, an online travel agency (OTA), or by telephone.

Additional Information:

The main performance indicators of the Hotels market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues. Users represent the aggregated number of guests. Each user is only counted once per year. Well-known providers are Hotels.com, trivago, and Booking.com.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

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Booked directly via the providers website, through a tour operator, an online travel agency (OTA), a travel agency or by telephone

Private accommodation and holiday flats, private room and accommodation rentals (e.g. Airbnb)

The Hotels market in Southern Africa is experiencing a significant growth trajectory driven by various factors that are shaping the industry in the region.

Customer preferences: Travelers in Southern Africa are increasingly seeking unique and authentic experiences, leading to a rise in demand for boutique hotels and eco-friendly accommodations. Tourists are also showing a preference for hotels that offer cultural immersion and opportunities to engage with local communities.

Trends in the market: In South Africa, there is a growing trend towards luxury safari lodges and wellness retreats, catering to high-end travelers seeking exclusivity and relaxation. In countries like Namibia and Botswana, the focus is on eco-tourism and sustainable practices, with hotels incorporating green initiatives to attract environmentally conscious guests.

Local special circumstances: Countries in Southern Africa are known for their diverse landscapes and rich wildlife, making them popular destinations for safari and adventure tourism. This unique selling point has led to the development of specialized hotels and lodges that offer unparalleled access to nature reserves and national parks.

Underlying macroeconomic factors: The Hotels market in Southern Africa is also influenced by macroeconomic factors such as currency fluctuations, political stability, and infrastructure development. Stable governments and improvements in transportation networks have made the region more accessible to international tourists, driving the growth of the hospitality sector.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

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