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

Teachers support $359m initiative

22 Aug 2014 News
Education Minister Hekia Parata has today welcomed an agreement with the union representing around 18,000 secondary school teachers... more

New military pilot training aircraft arrive in NZ

22 Aug 2014 News
Defence Minister Jonathan Coleman says the arrival of the first two new Air Force T-6C pilot training aircraft is an important... more

Business

UPDATE: Tower's minimum solvency reduced as claims progress

22 Aug 2014 Business News By Suze Metherell
Tower's minimum solvency reduced as Canterbury claims progress Aug. 22 (BusinessDesk) - Tower's minimum solvency margin has been ... more

Airways sees 27% gain in 2015 profit, misses 2014 target

20 Aug 2014 Business News
By Tina Morrison Aug. 20 (BusinessDesk) - Airways Corp. of New Zealand expects to boost profit 27 percent this year, after missing... more

Living

INXS Kicks in the TV Ratings, Tops the NZ Album Charts

22 Aug 2014 Entertainment
Mediaworks MEDIA RELEASEFOR IMMEDIATE RELEASE Friday 22 August, 2014 INXS Kicks in the TV Ratings, Tops the NZ Album ... more

The Rock’s Bryce Casey to Bowl 55-Hours Non-Stop

22 Aug 2014 Lifestyle
The Rock’s Bryce Casey to Bowl 55-Hours Non-Stop for Cure Kids Red Nose Day Appeal It’s been 10 years since The... more

Property

House sales down as winter cools market - REINZ

14 Aug 2014 Property
New Zealand house sales fell in July as winter cooled the appetite of house hunters while a drop in properties selling for $400,000... more

NZ property values rise at slowest annual pace in 13 months

7 Aug 2014 Property By Paul McBeth
Aug. 7 (BusinessDesk) - New Zealand property values rose at the slowest annual pace in 13 months in July as rising interest rates,... more

Migration

Who's living next door to you?

20 Aug 2014 Migration
Statistics NZ puts out detailed data on different ethnic groups, down to the 108 people from the Isle of Man. Did you know there are... more

NZ population growth speeds up

14 Aug 2014 Migration
New Zealand's climb to 4.5 million people has been faster in the past year than it has in any other year in the past decade,... more

Travel

Auckland 10th most liveable city - again

19 Aug 2014 Travel & Tourism
Auckland has again been ranked the tenth most liveable city in the world. The Economist Intelligence Unit (EIU) has released its... more

Air NZ Dreamliner to be put on show

15 Aug 2014 Travel & Tourism
An Air New Zealand Dreamliner is to be put on show at a famous air show next week. The Boeing 787-9 aircraft will be exhibited to... more

Sport

Draw has put All Blacks on edge - McCaw

22 Aug 2014 Rugby
Richie McCaw has compared the build-up to tomorrow's Bledisloe Cup test to the one which came following the All Blacks' thrashing at... more

Haier Pulse Secures Silver Fern Jodi Brown

22 Aug 2014 Netball
The Haier Pulse has added Silver Fern Jodi Brown to the roster for the 2015 ANZ Championship, following her return from an extended ... more

Columns

Martin Doyle Cartoon: Doing Justice to the Election

19 Aug 2014 Opinion
Opinion - Martin Doyle   Martin Doyle Cartoon: Doing Justice to the Election Given the dirty politics that have been exposed in... more

Gordon Campbell on no more Mr Nice Guy

19 Aug 2014 Column
Column - Gordon Campbell   Gordon Campbell on no more Mr Nice Guy by Gordon Campbell When future historians seek to identify... more

Kiwi Success

The duo behind NZ's hottest new label

20 Aug 2014 People
We're expecting big things from Harman Grubisa, the new label from Auckland-based friends Madeleine Harman (right) and Jessica... more

Victoria announces new strategic appointments

11 Aug 2014 Appointments
Victoria University of Wellington has announced the appointment of New Zealand’s first Provost, Professor Neil... more

Recruitment

High dollar, hands-off Govt sends workers to dole queue

22 Aug 2014 Recruitment
The loss of up to 100 jobs at Croxley stationery in Auckland is devastating news for their families and the local Avondale... more

On track to surplus, more jobs, higher incomes

19 Aug 2014 Recruitment
New Zealand is on track to Budget surplus this year, backed by good growth, more jobs and higher incomes under the ... more