Following South Africa hosting the BRICS Summit recently, BRICS ministers are directing their efforts towards enhancing air connectivity among member nations including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina and the United Arab Emirates, which are new members set to join from January next year.
The hosting of the summit and improvement in air connectivity among these nations, positions South Africa favourably with the country’s hospitality industry primed for a period of rapid growth.
Niels Verpsui, the Market Head of RoomRaccoon South Africa, said that there is an exciting opportunity for hoteliers to capitalise on the predicted influx of tourists from BRICS destinations.
Verpsui said that hotels should be proactive in looking a data to help them shape their business and marketing strategies.
“Understanding the data hotels have available to them can dramatically impact their decision-making. Data such as average booking lead time can be a great tool for formalising marketing campaigns based on when booking sentiment is high,” he said.
Verpsui highlighted the importance of reaching a broad audience when it comes to online travel agents (OTA).
“One approach is to consider listing your property on popular Online Travel Agents in key BRICS markets. Platforms like C-Trip for the Chinese market and Expedia for Brazil are pivotal channels for hotels to engage with these distinct segments, as well as boost visibility on a global consumer scale.
“Additionally, hotels should consider distributing their property on popular bed banks like Hotelbeds, which provide access to extensive networks of tour operators, travel agents and airlines,” said Verpsui.
He also recommended that hotels leverage dynamic pricing technology to maximise revenue per available room, the standard metric for measuring top-line performance.
“By implementing AI software that can understand supply and demand, hoteliers can have a dynamic pricing strategy that considers fluctuating demand and make sure that they are generating the best possible rates across all sales channels,” said Verpsui.
He also revealed that RoomRaccoon clients have seen a lot of success in implementing dynamic pricing tools in 2023, with revenue per available room (RevPAR) performance outpacing 2022 by 18%.
“The increase in RevPAR indicates that hotels are generating better revenue for their spaces by capitalising on sustained high occupancy in 2023,” he said.
And finally, Verspui said that beyond BRICS, hotels should be cognisant of upcoming events like the Mining Indaba, which is set to take place at the CTICC in February next year.
“This is a fantastic opportunity for hotels to diversify their revenue streams beyond selling rooms. Automated upselling tools and tailored packages targeted at leisure travellers will help hotels remain competitive while enhancing the guest experience,” said Verpsui.