Increasing demand to push hotel rates up in 2019

The latest report in the 4D Focus Series, by 4th Dimension Business Travel Consulting, shines the spotlight on future accommodation trends in our region.

The report, 4D Accommodation Focus Report - Australia and New Zealand 2019 Outlook, provides unique insights to help corporates budget for the predicted rate and occupancy increases that will impact business travel budgets.

FCM General Manager, Melissa Elf said the expert commentary in the report ensured clients were across the latest trends in the fast-moving accommodation sector.

“We are pleased to provide clients with access to this 4D report, so they can manage their forward travel planning, supplier negotiations and accommodation budgets for 2019. Expert content for our sector helps clients to secure best return on their travel investment,” Melissa said.

“The 4D report focuses on eight cities in Australia and five in New Zealand and reveals which cities will see the biggest Average Room Rate (ARR) and occupancy increases next year. Sydney is looking at the biggest spike in rates along with Queenstown, in New Zealand’s south.

“Customers who are travelling domestically and to key destinations in New Zealand in 2019 are looking at rate rises of up to 5% in some cities. Our account management team can help customers work through these rate increases to see how these trends impact your individual travel program.”

A trend in 2018, which saw visitor increases in Australia of +6% and over 4% for New Zealand, looks set to continue. Increasing demand is expected to drive occupancy rates up as well as rates. The boutique hotel revolution, which emerged in the past year is gaining momentum across many cities and both Perth and Brisbane have seen attractive new inventory opening for business travellers.

Felicity Burke, General Manager, 4th Dimension Business Travel Consulting (4D) said procurement departments could use this content to plan ahead for their 2019 hotel programs – if they were still in the process of negotiating rates.

“The aim of our research is to help the corporate sector put strategies in place to meet the changing travel landscape. Inbound visitor numbers are growing, so too are local events which impact occupancy levels, rates and quite often airfare prices. It pays to be prepared and plan ahead as far as possible,” Felicity said.