Sydney hotel patrons facing 5% price hike
Corporate and leisure travellers can expect hotel rates in Sydney and Queenstown on New Zealand’s South Island to surge at least 5% next year but accommodation rates in the once booming mining cities of Perth and Brisbane are expected to remain relatively flat.
Increases in international visitors and cruise ship passengers to Sydney are pushing up hotel occupancy levels and prices. While in Queenstown, the alpine resort township’s heavy events and conference calendar is fuelling demand for hotel accommodation, according to Flight Centre’s Accommodation Focus Report 2019 released to The Australian.
“Sydney can expect rate rises of about 5% with close to 90% occupancy, while Melbourne can expect a 3% rate increase with supply to be constrained despite a substantial pipeline of new developments,” says FCM Travel Solutions general manager, Melissa Elf.
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“We’re anticipating mixed results across the board with the average room rate across Australia set to increase 3-4 per cent, or $6-$8,” she says.
Australian Bureau of Statistics data for the year ending July, reported 9.1 million inbound international visitors, which is up 6 per cent on the previous 12 months. New Zealand Bureau of Statistics data for the year ending August, reported a total of 3.8 million inbound visitors, up 4 per cent on the previous 12 months. New hotel openings are expected in Sydney, Auckland and Hobart which could raise room rates.
Revenue per available room is expected to increase by an average 4-5% in 2018, while next year it should jump by 3-4%. The increase in revenue per available room will be driven by new room inventory and moderate growth in tourism, which is set at about 4.1% per annum, according to Tourism Research Australia.
Several new hotels are set for release in 2019 — but if they don’t proceed or if opening is delayed it could reduce supply and likely raise revenue per available room and room rates, the report said.
Flight Centre’s report also found more demand for boutique style hotels is gaining momentum across major cities so the future will cater to many traveller styles.
Average occupancy levels across Australia for major cities in 2018 are estimated to be 79.3% and should remain flat at 80% in 2019.
This article originally appeared on www.theaustralian.com.au/property.
