The fourth quarter of 2022 saw an average hotel room rate increase by six percent in Australia and New Zealand.
Surpassing records set in 2019, the latest FCM Consulting Global Trends Report listed the Australian and New Zealand markets as the second-highest increase, as North America has seen a jump of eleven percent.
The Oceania region saw occupancy rates of eighty-five percent in the fourth quarter of 2022, while Central America has the only region ahead of their pre-covid-19 statistics. Mainland China was sitting on seventy-two percent, high considering their borders had only recently opened.
FCM Consulting general manager Felicity Burke said that the rates for rooms in Oceania were evaporative.
“Average room rates remained volatile in Q4-2022 with North America and Australia/New Zealand the only two regions to have surpassed 2019 levels – with both Latin America and the Middle East also now nearing pre-pandemic rates.”
Labour shortages were the main issue for 2022 internationally, and a continuation of that trend has been forecasted for 2023.
“Attracting, retaining, and training staff are paramount to any successful hotel. With operating costs making up approximately 50 percent of labour costs, increasing salaries to attract talent is only an option if such costs can be passed on to the end consumer.”
Auckland was the most affected region in Oceania, with a rise of twenty-four percent. Melbourne was up by two percent, whereas Sydney has fallen by one percent, and Wellington by seven percent.
The non-last room availability rates have seen a forty-five percent increase. Dynamic discounts off the best available price have also become a more popular option than most negotiated fixed rates.