Opinion

Essential tips for growing your small hospitality business in South Africa

TERRENA RATHANLALL|Published

South African small hospitality business owners can discover 10 practical strategies to foster growth, increase visibility, and succeed in a competitive landscape.

Image: Supplied

Running a guesthouse, lodge or B&B in a small town is often more than just a business - it’s a personal calling. But while passion opens the door, it’s strong business foundations that keep the lights on.

For many small hospitality businesses in South Africa, especially those in rural or coastal communities, growth often feels just out of reach.

Here are a few tips for business owners who want to grow but aren’t always sure how to get there:

1. Strengthen business skills without formal training

Many hospitality entrepreneurs start their businesses from scratch, learning as they go without the benefit of formal training. Yet, understanding the basics of finance, marketing, and operations is essential for long-term growth.

Free resources are available through many organisations like Fetola, Booking.com, online platforms, and community training centres. Even learning one new tool, like how to manage expenses on a spreadsheet or how to create a booking system, can make day-to-day business easier and more profitable.

2. Explore funding opportunities

Accessing funding is one of the biggest challenges for small business owners. Many don’t know where to start, or they’ve tried before and been turned away. But funding is not out of reach.

Government grants, microloans, and private sector support are available, especially for businesses that can show potential and planning. A simple business plan and basic financial records can be the difference between getting help and being overlooked.

3. Develop a clear growth strategy

It’s not enough to work hard; business growth needs direction. Without a plan, many businesses find themselves busy but stuck, unsure where they’re going next.

A growth strategy helps a business owner decide what to focus on, whether that’s attracting more guests, raising prices, or improving customer experience. Checking in on this plan every few months helps identify what’s working and what’s not.

A clear strategy not only guides decisions but also makes it easier to access support and funding.

4. Focus on marketing

Marketing is often overlooked, yet it’s one of the most powerful tools a hospitality business has. Without it, even the best guesthouse can go unnoticed.

Social media platforms like Facebook and Instagram, and even Google Maps, are free and effective ways to showcase a business. Posting photos, guest testimonials, and local attractions can help travellers find and trust your offering.

It’s also important to respond to enquiries, messages and reviews quickly - that’s how trust and bookings are built. The South African hospitality industry is expected to reach R25 billion this year, and businesses need to get ready to enjoy the benefits.

5. Build a support network

Many hospitality entrepreneurs feel like they’re doing everything on their own, and in most cases, they are. But being part of a network can change everything.

Connecting with local tourism groups, WhatsApp forums, or mentorship communities offers support, fresh ideas, and encouragement when things get tough. It also opens the door to potential collaborations or group promotions.

Support networks are not just about help; they’re also about visibility and shared growth.

6. Expand market reach

A common challenge is having a great offering but struggling to get bookings beyond the local community. This often comes down to limited visibility.

Listing on platforms like Booking.com can expose a business to a national and even international audience. Partnering with local tour operators and guesthouses also helps bring in new types of travellers.

Hospitality businesses should always be thinking, “How can I get more eyes on what I do?”

7. Manage seasonal fluctuations

Tourism often slows down outside peak seasons, and for many small hospitality businesses, this dip hits hard. But there are ways to soften the blow.

Diversifying offerings like hosting workshops, offering meals, or running local events can create income even in quiet months. Promotions and loyalty programmes can also help bring back repeat guests.

Planning ahead for slow seasons helps keep the business stable all year round.

8. Price services profitably

Pricing can be tricky. Many small business owners undercharge because they’re afraid guests won’t pay more, but this can hurt the business in the long run.

Pricing should reflect the quality of the experience, the time and effort it takes to deliver it, and the business’s expenses. Regularly reviewing pricing and comparing it with similar businesses helps ensure fair, competitive rates.

Learning how to price correctly can turn effort into reliable income.

9. Gain exposure and recognition

A hospitality business needs more than good service; it needs people to know it exists. And for that, visibility matters.

Telling the business story - what makes it different, what’s special about the location, and how guests are treated - helps attract interest. Local media, tourism awards, and online reviews are powerful tools for boosting credibility.

Recognition builds trust, and trust leads to bookings.

10. Embrace growth with confidence

Many small business owners hold themselves back because they think they need to know more before they take the next step. But growth starts with action, not perfection.

Being open to learning and seeking guidance is what builds strong, lasting businesses. No one has it all figured out, and that’s okay.

The most successful entrepreneurs are the ones who ask questions, try new things, and keep showing up.

Hospitality businesses are the heart of South Africa’s local tourism economy. When they grow, communities grow with them. By building business skills, strengthening networks, and taking small, consistent steps toward improvement, these businesses can move from surviving to thriving and claim a piece of that R25 billion pie.

If you're looking for practical support, mentorship, and tools to grow your hospitality business, stay connected - opportunities like the Booking.com Hospitality Growth Programme run in partnership with Fetola are designed with businesses like yours in mind. 

*Terrena Rathanlall is the SME Media Manager at Fetola, a business growth company based in Cape Town.

*The opinions expressed in this article does not necessarily reflect the views of the newspaper.

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