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Hotel rate trends in Asia-Pacific

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Some cities are seeing big rate increases
Tokyo continues to be Asia-Pacific’s most expensive city for hotel room rates, with Sydney and Singapore following closely behind, according to HRS Hotel Price Radar: 2016 Year in Review. Other cities are seeing big changes.
Tokyo is still the most expensive city for hotel room rates with ADR rising to €191, up 11.7% from the previous year, a trend that is expected to continue at least until the Tokyo 2020 Olympics.
Sydney and Singapore, meanwhile, saw €175, up 2.9%, and €171, up 2.4%, in ADR respectively.
Following a plunge in arrivals in 2015 due to MERS, South Korea’s inbound tourism made a comeback by rising 33%, according to Korean Tourism Organisation. With an aggressive marketing push resulting in a surge of tourists from China, ADR in Seoul spiked by 32.5%, growing from €126 in 2015 to €167 in 2016, the highest increase across Asia-Pacific.
Ho Chi Minh City posted an ADR increase of 31% to €94 in 2016, partly due to an inventory crunch. The launch of e-visa facilities in February 2017 is set to improve the country’s accessibility and further drive demand for rooms.
India, ranked the 10th biggest business travel market globally in 2016 by a GBTA Foundation report, continues to see room rates rise in certain cities. Bengaluru, the IT hub of India, saw a marked increase in 2016 with ADR rising more than 16%, a growth expected to continue in 2017.
By contrast, China’s two largest cities – Shanghai and Beijing – experienced a drop in their average room rates, probably due to stabilisation in demand and room supply.
Jakarta and Bangkok were the only cities that recorded neutral growth, despite rising business travel, with their ADRs possibly tapered by terror attacks and other events that occurred in both cities in 2016.
TTG Asia

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