The Average Room Rate (ARR) of hotels in Sydney
rose nearly 9% in the second quarter of 2017 despite an overall
drop in occupancy to 83.9%.
Analysis from Flight Centre Travel Group's
business travel consulting division, 4th Dimension, showed
Sydney's market leading rates have not cooled since the record
occupancy levels of Q1 2017.
Corporate Traveller General Manager Jess
Anscombe said visitors to Sydney were unlikely to get a price
reprieve in the medium term due to Sydney's underlying supply
"Aside from the Sofitel Sydney Darling Harbour
there aren't any other major hotels opening in the Sydney market
this year," she said. "Also, the recent reopening of the Sydney
International Convention Centre will likely increase pressure on
supply with more weekday business travellers visiting for larger
conferences and events."
Ms Anscombe said the small number of new premium
hotels entering the Sydney market in 2018 was unlikely to put
significant downward pressure on rates.
"Travellers who are looking to keep costs down
need to be proactive about booking early to ensure they have
access to the cheapest rate buckets," she said.
Despite the rate jump in Sydney, the outlook was
brighter for accommodation seekers in Melbourne, Perth and
Brisbane with 4th Dimension's analysis showing year on year
decreases in those markets.
Perth showed the most significant drop with a
7.7% decrease in ARR while Brisbane and Melbourne showed
respective decreases of 2.3% and 1.9%.
There were mixed results for major overseas
destinations with London's ARR falling by 3.7%, Singapore
increasing by 1.7% and New York increasing by whopping 25%.
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