2019 Accommodation Focus
November 15, 2018
A recent report from 4th Dimension Business Travel Consulting revealed some insights into Australian and New Zealand cities frequented by corporate travellers.
4D have forecast that the opportunities for rate negotiations in 2019 will vary dramatically between key cities. Also, the emergence of smart buying through preferred hotels/chains for meetings and events will create a significant value story for corporate travel procurement teams.
For Australia the forecast is as follows:
- RevPAR (revenue per available room) across Australia is expected to average 4-5% growth in 2018 and 3-4% in 2019. This is driven by new room inventory and moderate growth in tourism which is set at +4.1% per annum (Tourism Research Australia).
- Several new properties are set for release in 2019 – however, if slowed will reduce supply and likely increase RevPAR and ARR (average room rates). The boutique hotel revolution is gaining momentum across major cities so the future will cater to many traveller styles.
- ARR across Australia will increase 3-4% or $6-8 nationally.
- Occupancy levels across Australia for major cities in 2018 are estimated to be 79.3% and should remain flat at 80% in 2019.
City by city the forecast is:
Sydney – High occupancy ranging from 80-90% during H1-2018 which is set to remain in this range moving into 2019. ARR up by 5%
Melbourne – Occupancy levels to stay above 84%, and supply to be constrained despite a substantial pipeline of new developments. ARR up by 3%
Brisbane – A market showing signs of positive growth which could see occupancy levels climb to 80% over the next 2-3 years. ARR flat
Adelaide – Relatively flat market in which low supply growth is allowing demand to catch up for the year ahead. ARR up by 3%
Perth – During the past year several new properties were opened in the city and surrounds, enabling corporate travellers further choice of hotels. ARR flat
* Signs of flat ARR in markets such as Perth and Brisbane were reported due to new room inventory released during the year offering attractive opening special rates.
To read the full report download it HERE