Drop in NZ hotel prices positions market for positive 2013   5 Mar 2013

Hotels.com

 

Drop in New Zealand hotel prices positions market for positive 2013

 

· New Zealand hotel rates fall by 2% in 2012 to $149 a night; global average up 3%

· Europe offers New Zealand travellers best value for money

 

Auckland, 05 March 2013 – The latest Hotels.com® Hotel Price Index™ (HPI) has found New Zealand hotel prices fell 2% in 2012 to $149 a night, in contrast to the 3% average global rise. The fall is a significant shift from the 13% increase experienced in 2011.

 

The strength of the New Zealand currency, coupled with economic uncertainty in the Eurozone, traditionally one of New Zealand’s largest source markets, impacted inbound tourism. The market readjustment following the 2011 Rugby World Cup was also a contributing factor to the fall in prices.

 

However, the second half of 2012 showed positive signs for the New Zealand hotel market. The consistent increase in Chinese travellers, the 100% Pure New Zealand marketing campaign, and the launch of Tolkien’s movie, The Hobbit, which raised the profile of country on a global scale, all helped to boost tourism. Inbound visitor numbers are expected to continue on an upward trajectory in 2013.

 

Johan Svanstrom, Vice President and Managing Director, Asia Pacific for Hotels.com, said: “While hotel prices in New Zealand dropped last year, the second half of the year signalled the start of a turnaround, which is set to continue into 2013. According to the HPI, Chinese travellers are the biggest spenders on accommodation in New Zealand. As the number of Chinese travellers continues to grow exponentially, attracting their custom will become increasingly important.”

 

Spotlight on New Zealand

Cities on the North Island represented the best value for money for travellers*. Average rates in Gisborne were down 11% to $139, Napier fell 7% to $154, Palmerston North dropped 6% to $109 and prices in Auckland were down 5% to $137.

 

On the South Island, popular holiday destinations rose well above the national average.

Blenheim had one of the strongest results with a 15% rise taking it to $173. The resort town of Wanaka climbed 16% and Lake Tekapo, in the Mackenzie Basin, saw an 8% rise to $189. Queenstown’s hotel prices were flat with at $177 per room per night.

 

Auckland, Christchurch and Wellington all featured in the list of the world’s 10 most affordable destinations for New Zealand travellers.


The resources boom in Australia and a healthy corporate travel market drove hotel prices higher. Melbourne added 10% moving to $210 and the Gold Coast and Cairns both rose 5% to $190 and $170, respectively. Prices in Sydney, the most popular destination for New Zealanders, increased 3% to $218 per night.

 

Europe **

In general, average rates in Europe were relatively flat in 2012. However, this average hid some significant shifts driven by the uncertain economic situation in the Eurozone, which deterred travel to and within the continent, particularly in the southern region.

 

New Zealand travellers enjoyed price falls in most European destinations. In Italy, prices fell in many popular tourist cities: Rome 17% to $192; Venice 15% to $232; Milan 13% to $206; and Florence 2% to $197.

 

At $189 per night, Barcelona was the cheapest European destination for New Zealand travellers. Paris and London were the most expensive European destinations, at $239 and $256 respectively.

 

Asia**

There were several factors influencing the price rises across Asia during 2012: the return of travel to and from Japan following the disasters of 2011; the strength of the local economies; the continued rise in the number of Chinese travellers; and an increase in the number of flights by low-cost carriers.

 

Major cities in Asia performed exceptionally well with double-digit growth seen in Beijing (28%) to $126, Hong Kong (18%) to $240, the highest rate in the region. Prices in Singapore experienced a small movement of 1% to $220.

 

There were some marked falls across the region with Hanoi down 38% to $56, making it the city where New Zealand travellers paid the least. Ho Chi Minh City also recorded a 5% decrease to $83.


US price rise **

In the US, the stronger economy, coupled with increased international and domestic travellers, drove overall rates up 5% and resulted in significant double-digit increases in important business and tourist destinations. Prices were up in nine of the 10 US destinations included in the HPI for New Zealanders.

 

The steepest price rises were on the west coast with San Francisco experiencing the largest rise of 18%, taking it to $243, Anaheim, home of the Disneyland Resort, added 16% to $166 and Los Angeles went up 10% to $200.

 

Popular holiday destinations followed suit with Las Vegas up 16% to $148 while New York, the most expensive US destination at the top of the overall price chart, rose 3% to $350.

 

Svanstrom commented: “Whilst Australia and the US will continue to be popular, savvy travellers will be keeping a close eye on Europe in 2013 as it offers better value for money than ever before.”

 

The Hotels.com HPI is based on bookings made on Hotels.com sites around the world and tracks the real prices paid per hotel room (rather than advertised rates) for around 155,000 properties.

 

-Ends-

Add a comment

Bookmark and Share

News

Regeneration the focus of Christchurch governance

2 Jul 2015 Canterbury Earthquake
The regeneration of Christchurch will be the city’s focus for the next five years as local leadership progressively takes... more

Government Welcomes Successful WTO Trade Policy Review

2 Jul 2015 News
Government Welcomes Successful WTO Trade Policy Review Trade Minister Tim Groser today welcomed the conclusions of the 5th World... more

Business

TPP too big to fail, says visiting US trade deal specialist

2 Jul 2015 Business News By Fiona Rotherham
  TPP too big to fail, says visiting US trade deal specialist Petri July 2 (BusinessDesk) - Too much political capital has been... more

MARKET CLOSE: NZ shares gain, led by A2 as bidders named

24 Jun 2015 Business News
Article - BusinessDesk   MARKET CLOSE: NZ shares gain, led by A2 as potential bidder unmasked; dividends appeal By Jonathan ... more

Living

Remarkables ski area to kick off 2015 season this Saturday

24 Jun 2015 Lifestyle
The Remarkables June 24 2015 The Remarkables ski area to kick off 2015 season this Saturday The Remarkables ski area in Queenstown... more

SMCO-SOUNZ Composer Workshop selected works announced

23 Jun 2015 Lifestyle
SOUNZ For immediate release SMCO-SOUNZ Composer Workshop selected works announced SOUNZ and Auckland based St Matthews Chamber... more

Property

Extending Canterbury accommodation support

24 Jun 2015 Property
New Zealand Government Hon Anne Tolley Minister for Social Development 24 June 2015 Extending Canterbury accommodation... more

Arvida to buy three Auckland facilities for $62M

24 Jun 2015 Property
Article - BusinessDesk   Arvida to buy three Auckland facilities for $62M, raising new capital By Paul McBeth June 24 ... more

Migration

NZ migration rises to new annual record in May

22 Jun 2015 Migration By Suze Metherell
  NZ migration rises to new annual record in May, closing in on Treasury's upside scenario June 22 (BusinessDesk) - New Zealand... more

More visas online through Immigration ONLINE

16 Jun 2015 Migration
Immigration Minister Michael Woodhouse welcomes the roll out of online Work and Visitor visas as fantastic news for Immigration New ... more

Travel

Air NZ sees annual earnings rising by as much as 60%

24 Jun 2015 Travel & Tourism
Article - BusinessDesk   Air NZ sees annual earnings rising by as much as 60% By Paul McBeth June 24 (BusinessDesk) - Air New... more

Analysts divided on Jetstar impact on Air NZ's earnings

19 Jun 2015 Travel & Tourism
  Analysts divided on impact on Air NZ's earnings of Jetstar's regional routes challenge June 19 (BusinessDesk) - Analysts are... more

Sport

Wimbledon 2015: NZ Tennis players progress

2 Jul 2015 Sport
Kiwi Artem Sitak braves soaring temperatures and a lengthy battle to make it into the second round of doubles at Wimbledon.Kiwi Davis... more

Silver Ferns Netball World Cup team named

2 Jul 2015 Netball
Netball New Zealand (NNZ) National Selectors have picked a 12-strong Silver Ferns team featuring a mix of youth and experience to... more

Columns

Gordon Campbell on Tiwai Point, and saying “No” in Greece

2 Jul 2015 Opinion
Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good... more

Gordon Campbell on telling the poor to ask for more

24 Jun 2015 Column
Column - Gordon Campbell   Gordon Campbell on telling the poor to ask for more The government’s more

Kiwi Success

New Environment Protection Authority (EPA) board appointments

2 Jul 2015 Appointments
New Zealand Government Hon Dr Nick Smith Minister for the Environment New EPA board appointments Environment Minister Dr Nick Smith ... more

New Chair and Commissioners for Maori Language Commission

2 Jul 2015 Appointments
New Chair and Commissioners appointed to the Maori Language Commission The Maori Development Minister is pleased to announce that... more

Recruitment

Carpentry apprentices go head to head

23 Jun 2015 Recruitment
Apprentice of the Year Competition Carpentry apprentices go head to head in national competition Entries for the Registered Master ... more

NZ employees rate work-life balance as top priority

26 May 2015 Press Releases By Anna Lu
  NZ employees rate work-life balance as top priority, while job seekers eye cash, survey shows May 26 (BusinessDesk) - New... more