Hotel room prices rise despite falling dollar
The Hotels.com hotel price index survey found guests paid 4 per cent more for accommodation in the first six months of 2013 than at the same time last year. It now costs $171 per room, nationally.
But operators are tipped to experience a boost in demand both domestically and internationally as the effect of the softening dollars flows through more fully in the second half of the year.
"Despite these modest results from a hotel price perspective, the outlook remains positive as hoteliers focus on taking advantage of the thriving outbound markets of the region's growing economies," Johan Svanstrom, vice-president of Hotels.com Asia Pacific, said. The price index identified New Zealand, China, the US and Britain as the fastest-growing inbound market.
In Sydney, room rates rose 9 per cent to hit $190 per night. They increased 4 per cent in Melbourne to $163, and fell 1 per cent to $168 in Brisbane.
With the slackening of the mining boom, Perth witnessed a 5 per cent decline to $200. The Whitsunday Islands was the most expensive location at $254 a night.
Frequently Asked Questions about this Article…
According to the Hotels.com hotel price index, travellers paid more for accommodation in the first half of 2013 even though the dollar was weaker. The article says hoteliers remained positive, targeting growing outbound markets and expecting demand to pick up as the softening dollar flows through later in the year — keeping prices elevated despite currency weakness.
The Hotels.com hotel price index found that guests paid 4% more for accommodation in the first six months of 2013 than the same period the previous year, with the national average cost at $171 per room.
The index showed Sydney room rates rose 9% to $190 per night, Melbourne increased 4% to $163, Brisbane fell 1% to $168, and Perth declined 5% to $200.
The Hotels.com index identified New Zealand, China, the US and Britain as the fastest-growing inbound markets, which the report says hoteliers are targeting to boost demand.
The article says operators are tipped to see a boost in both domestic and international demand as the effects of the softer dollar flow through in the second half of the year, supporting a generally positive outlook for hoteliers.
The report links a slackening of the mining boom to Perth’s hotel performance: Perth witnessed a 5% decline in room rates, bringing the average to $200 per night.
The Whitsunday Islands was the most expensive location in the report, with an average room rate of $254 a night.
Everyday investors can note a mixed but generally positive hotel-price environment in early 2013: national prices rose 4% to $171, city-level performance varied, and hotels expect stronger demand as a softer dollar attracts more visitors from key inbound markets like NZ, China, the US and Britain. These are observable market signals rather than direct investment advice.
Call 1300 880 160
Start a chat
Schedule a call
