Hotel rates in ANZ up 6% from 2019 levels, FCM reports
The fourth quarter of 2022 saw hotel average rooms rates in the Australia and New Zealand region surpass those in 2019 – up six per cent ($17USD) – according to FCM Consulting’s latest global trends report.
ANZ hotels came in second to North America, which saw an 11 per cent ($25USD) increase.
On the whole, Australia and Oceania enjoyed strong occupancy rates of 85 per cent in Q4-2022 when compared to 2019, while Central America led the pack by being the only region ahead of pre-COVID levels. Mainland China, that has just reopened its borders, was sat at 72 per cent.
“Average room rates remained volatile in Q4-2022 with North America and Australia/New Zealand the only two regions to have surpassed 2019 levels – with both Latin America and the Middle East also now nearing pre-pandemic rates,” said FCM consulting general manager Felicity Burke.
“Our forecasts tell us that 2023 average global rates are set to climb further – up seven per cent or $15USD across all markets – with 2024 predicted to see those rates level out.
“As corporates contracted rates for the 2023 year, we saw a 45 per cent increase in the NRLA (Non-Last Room Availability) rates offered. As rates rose in 2022, dynamic discounts off BAR (Best Available Rate) became a higher rate option than negotiated fixed rates.”
Burke said that labour shortages was the biggest challenge for hotels in 2022 and the same would continue throughout 2023.
“Attracting, retaining, and training staff are paramount to any successful hotel. With operating costs making up approximately 50 per cent of labour costs, increasing salaries to attract talent is only an option if such costs can be passed on to the end consumer,” she said.
Top rate comparisons to Q3-2022 (rates reduced $8 versus Q3-2022, signalling stabilisation):
- Auckland was up 24 per cent.
- Melbourne was up two per cent.
- Sydney was down one per cent.
- Wellington was down seven per cent.
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