City Lodge: Plenty of room at the inn for battling hoteliers
Subdued business and consumer confidence (not to mention Airbnb) hammers the SA hospitality industry
Declining occupancy rates in SA hotels look set to continue as subdued business and consumer confidence hammers the domestic travel and hospitality industry.
Average occupancy rates across the hotel industry have fallen steadily in the past few years. In the 12 months to the end of June, City Lodge’s occupancy rate fell from 59% to 55%. In the 2015 financial year, its rate was 67%.
In addition to shrinking disposable income, travellers choose to either shorten their stays or “trade down” by opting for cheaper accommodation...