Analysis from Flight Centre Travel Group’s business travel consulting division, 4th Dimension, shows the Average Room Rate (ARR) of hotels in Sydney rose nearly 9 per cent in the second quarter of 2017 despite an overall occupancy drop to 83.9 per cent.
Corporate Traveller General Manager Jess Anscombe said the small number of new premium hotels entering the Sydney market in 2018 was unlikely to put significant downward pressure on rates and added that “aside from the Sofitel Sydney Darling Harbour there aren’t any other major hotels opening in the Sydney market this year.”
The outlook was brighter for accommodation seekers in Melbourne, Perth and Brisbane with 4th Dimension’s analysis showing year on year decreases in those markets.
Perth showed the most significant drop with a 7.7 per cent decrease in ARR while Brisbane and Melbourne showed respective decreases of 2.3 per cent and 1.9 per cent.
There were mixed results for major overseas destinations with London’s ARR falling by 3.7%, Singapore increasing by 1.7% and New York increasing by whopping 25%.
Corporate Traveller has been a leading supplier of business travel solutions for more than 20 years and services more than 6,500 clients throughout Australia. As part of the Flight Centre Travel Group (FCTG), Corporate Traveller is backed by the global network of one of the world’s largest travel agencies.