Australian hotel price growth slows

The average price of a hotel room around the world rose by 2% during the first six months of 2013 compared with the same period last year, according to the latest Hotels.com Hotel Price Index.

The rise, although relatively small, maintained a trend seen since the start of 2010 of slowly increasing rates, with average prices around the world now close to their 2006 levels, before the global financial crisis.

Growth in the Pacific slowed dramatically, with the region witnessing a modest 1% rise in the first half of 2013 on the back of the contraction in the Australian mineral resources industry and political uncertainty in the region’s major economy.

Following the improved exchange rate for international visitors to Australia, hoteliers are poised to benefit from growing inbound and do-mestic travel markets with Sydney, Melbourne, Gold Coast and Cairns the most popular destinations for overseas visitors. The HPI revealed, of the 31 nationalities included in the report, 25 paid more when staying in Australian hotels in the first six months of 2013 compared to the same period in 2012.

Prices in Sydney rose 9% on the same period last year to reach an average of $190 per night. Melbourne also recorded a rise higher than the Australian average, increasing 4% to average $163. While the slowdown in the mining sector led to a 5% fall in Perth hotel prices to average $200 a night, other Australian mining hubs saw increases in prices. Mackay saw the largest increase of 15% to reach $170 a night, Darwin experienced growth of 6%, averaging $195, and the Hunter Valley grew 12% to reach $180. Brisbane fell 1% to $168.

The Whitsundays remained the most expensive destination for accommodation in Australia, with an average nightly room rate of $254, $83 above the country’s average of $171.

Australian city breakdown in AUD – H1 2013 compared with H1 2012

Global highlights

Prices paid by Australian travellers overseas increased in well over half of the international destinations included in the HPI, although many of the increases were relatively modest. The fall in the Australian dollar impacted prices paid in the second quarter of 2013. Of the 108 cities included in the report, average prices paid were up in 67, flat in eight and down in 33.

In the build-up to the 2014 World Cup and 2016 Olympic Games the world’s most expensive city for Australian travellers in the first half of the year was once again Rio de Janeiro, Brazil at an average of $312 a night – a rise of 3% on the same period last year. Despite the depreciation of the Real, Brazil ranked as the second most expensive country for Australian travellers behind Monaco.

Occupancy rates across the US were up in the first six months of 2013, which contributed to a rise in prices paid by Australian travellers in 15 of the 18 US cities included in the HPI, although rises were not as sharp as in previous reports. The steepest rises were in the west, with Anaheim, home of Disneyland in California, up 18% to $160, Honolulu up 11% to $250 and San Francisco up 10% to $216.

Top ten biggest price rises
(% price rises by city in H1 2013 compared with H1 2012)

Top ten biggest price falls
(% price falls by city in H1 2013 compared with H1 2012)

The Hotels.com Hotel Price Index is a regular survey of hotel prices in major destinations across the world. The HPI is based on bookings made on Hotels.com and prices shown are those actually paid by customers (rather than advertised rates) in the first half of 2013.