The unstable economic situation in the Eurozone has caused hotel rates in key European cities to plummet. Here in Australia, however, the hotel industry is celebrating its third successive year of growth since the global financial crisis, while the US appears to have rebounded.
Hotels.com Hotel Price Index™ (HPI), confirms that Australian hotel prices increased “by 4% in 2012 to AU$171 a night, more than the average global rise of 3%.”
Demand generated by the mining boom has been a significant factor in the Australian market, particularly in Perth, Western Australia, where “average room rates in Perth grew 15% to AU$211, an increase of AU$54 a night compared with the 2010 average of $157.”
“Attracting inbound tourism continues to present a challenge for Australia’s hoteliers,” explains Johan Svanstrom, Vice President and Managing Director, Asia Pacific for Hotels.com.
Popular holiday destinations within Australia are also some the most expensive.
Although prices have recently fallen by 9% in The Whitsundays, it still remains one of Australia’s most expensive destinations, at AU$247 per night.
Byron Bay also experienced a decline (7%), with average room rates now at AU$165 a night.
The strong demand from corporate and leisure travellers has lead to rate rises in capital cities.
“Prices in Melbourne rose 6% to AU$162 while growth in Sydney and Brisbane was more modest, up 4% to AU$183 and 3% to AU$172.”
However due to the economic situation within the Eurozone, travelling within and to London, Zurich and Milan has decreased, “prices in London, were down 3% to AU$212 per night.”
On the other hand Asia is currently on the rise, Mr. Svanstrom confirmed.
“Prices in Asia rose 2% and its expected rates in the region will continue on an upward trajectory as the volume of Chinese outbound travellers increases and the low-cost carrier market in North East Asia expands.”
The US has experienced an increase of international and domestic travellers, helping to drive rates up 5%.
Some of the biggest increases were in holiday destinations such as Honolulu, up 12% to AU$229, Miami up 11% to AU$208, San Francisco up 5% to AU$200, and Las Vegas up 4% to AU$145.”
In Europe, rates in cities such as Copenhagen, Amsterdam and Athens were down 10%.