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We take a look at the occupancy rates and prices charged for various accommodation types in South Africa. And what we find is that the occupancy rate of "cheaper" holiday alternatives such as caravan and camping sites are steadily increasing. Showing consumers are switching to alternative holiday accommodation types and shying away from the more expensive types.
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Occupancy rate of various accommodation types:
The line graph above shows the average occupancy rate per year per accommodation type in South Africa from 2007. As can be seen from the graph, caravan and camping site's occupancy rate has increased sharply in recent years, while "other" accommodation types have declined in the last couple of years. While occupancy rates is one thing, the price charged per unit is another. The next graphic will take a look at the price charged per unit of accommodation type per year.
Price per unit of various accommodation types:
The line graph above shows the nominal Rand price per unit of the various accommodation types per year. As can be seen from the graph the average price of the various accommodation types have been increasing steadily over the years, while caravan parks and camping site costs have not really increased over the years, in fact prices have been declining.
Seems the continued price decreases in the caravan and camping site prices coupled with price increases in other accommodation types has lead to the increase in the occupancy rate of caravan parks and camping sites. The graphic below shows the average monthly income earned from Caravan and Camping sites per year, from 2007.
Seems the continued price decreases in the caravan and camping site prices coupled with price increases in other accommodation types has lead to the increase in the occupancy rate of caravan parks and camping sites. The graphic below shows the average monthly income earned from Caravan and Camping sites per year, from 2007.
What is clear from the graphic below is the fact that there has been a massive increase in the average monthly income earned from caravan and camping sites over the years. From earning around R9million a month in 2011, caravan and camping sites now earn an average of R16.4million a month. A whopping increase of 82.4% in the last 5 years. While prices charged over the same period has remained almost unchanged. Showing the impact the better occupancy rates has had on their income earned. Perhaps a lesson for other businesses, you don't necessarily need to increase prices to make more money, increase in volumes can do that too.