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

Maori Battalion’s legacy to be preserved

2 Sep 2014 News
New Zealand Government Hekia Parata 2 SEPTEMBER, 2014 Maori Battalion’s legacy to be preserved The history of the legendary... more

Funding for Northland, Auckland, Waikato freshwater project

2 Sep 2014 News
New Zealand Government Amy Adams 2 SEPTEMBER, 2014 Govt funding for Northland, Auckland, Waikato freshwater project Environment ... more

Business

SFO charges MightyRiverPower engineer with $2 mln fraud

2 Sep 2014 Business News
Article - BusinessDesk   SFO charges MightyRiverPower engineer with $2 mln fraud By Paul McBeth Sept. 2 (BusinessDesk) - The ... more

NZ terms of trade sets new 40-year high in 2nd quarter

1 Sep 2014 Business News By Suze Metherell
Article - BusinessDesk   NZ terms of trade sets new 40-year high as cheaper imports offset falling exports Sept. 1... more

Living

Crowdfunding sought for Lee Tamahori to make second NZ film

2 Sep 2014 Lifestyle
The Patriarch PRESS RELEASE: Crowdfunding sought for Lee Tamahori to return home and make second New Zealand film 2 SEPTEMBER... more

‘Best trumpet player in the galaxy’ returns

1 Sep 2014 Lifestyle
NZ Symphony Orchestra 1 September 2014 - NZSO Media Release for immediate release The ‘best trumpet player in 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

Jetstar loses ground in NZ as Qantas plunges to A$2.84B loss

28 Aug 2014 Travel & Tourism By Paul McBeth
Aug. 28 (BusinessDesk) - Jetstar, the discount unit of Australian airline Qantas Airways, lost ground in New Zealand, while claiming... more

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

Sport

Vaulting and Showjumping take Centre Stage at WEG

2 Sep 2014 Sport
Equestrian Sports New Zealand Vaulting and Showjumping take Centre Stage at WEG New Zealand representatives in vaulting and... more

Haier Pulse to Begin 2015 With Toughest Trip of All

2 Sep 2014 Netball
The Haier Pulse will once again face the reigning champions in the first round of the ANZ Championship, with a trip to Melbourne to... more

Columns

Martin Doyle cartoon: Wrong arm of the law

2 Sep 2014 Opinion
Opinion - Martin Doyle   Martin Doyle cartoon: Wrong arm of the law   more

Gordon Campbell on John Key’s ‘blame it on Judith’ strategy

1 Sep 2014 Opinion By Gordon Campbell
  Gordon Campbell on John Key’s ‘blame it on Judith’ strategy Right now, Prime Minister John Key seems intent... 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