Tuesday, May 22, 2018

Occupancy down but revenue up, Games stats show

Hotels may have been left with vacant rooms, but they still shared in an $870 bounty thanks to the Commonwealth Games.

Latest figures from market analysts STR show the Gold Coast recorded a higher revenue rate per hotel room during April’s event than the three previous host cities of Glasgow, New Delhi and Melbourne.

Despite reports of a disastrous opening week, in which local traders and hoteliers gearing up for a bumper Easter instead saw a marked drop in visitors, the latest data from market analytics expert STR reveals some Gold Coast hotels recorded triple-digit percentage increases in revenue.

Gold Coast hotels failed to register at-capacity occupancy levels – the average occupancy rate during the event was 86.6 percent compared with the 2014 Glasgow-hosted games rate of 95.7 per cent.

But average hotel prices leapt to $347 a night, an increase of more than 76 percent on the same time last year, while the opening ceremony night on April 4 saw prices more than double.

And while some charged an inflated premium for rooms during the games, it was the competitively-priced accommodation that packed out on a nightly basis.

Queensland’s tourism minister Kate Jones said:  “Those accommodation providers who were competitive with their prices had occupancy around about 95 per cent.

“We know that services like Airbnb had a large share of the market during the Games.

“No other big city has had a surge in registrations for Airbnb properties like we saw during the Games.”

The data shows more than a million people spent $870 million in Queensland directly before, during and after the event.

STR spokesperson Matthew Burke said while it was encouraging to see the hotels capitalise on the Commonwealth Games, the lasting legacy could have an even greater impact on the region’s future.

“As south-east Queensland continues exploring the prospect of bidding to host the 2032 Olympics, the results of this year’s Commonwealth Games will likely play a big role in the ultimate decision,” he said.

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