Hotel prices dip in NZ’s favourite overseas destinations

Hotel prices dip in NZ’s favourite overseas destinations

Las Vegas, Singapore, Los Angeles and Vancouver all cheaper for
Kiwi travellers

Auckland, 13 September: The price of hotel rooms fell significantly in a number of New Zealand’s favourite overseas destinations in the first six months of 2011, according to the latest Hotels.com® Hotel Price Index™ (HPI®).

As well as currency fluctuations, other factors including global economic instability, political unrest and natural disasters also contributed to reductions in hotel prices in many popular destinations, despite the global average price of a room rising by 3%. New Zealand itself saw the average room rate increase by 8% to $126 NZD, on the back of currency fluctuations.

The latest Hotels.com HPI reveals that hotels in some parts of Europe, Asia and America were significantly cheaper for New Zealand travellers as a result of marked price drops in the first half of 2011.

“In terms of value for money, now is a good time to be a New Zealander travelling overseas,” Johan Svanstrom, Managing Director, Asia Pacific for Hotels.com, said.

“The latest Hotels.com Index shows that prices have dipped in some of the most popular destinations for New Zealanders which include Las Vegas, Singapore, Los Angeles and Vancouver.”

Globally, average hotel prices for New Zealanders fell in eight of the countries surveyed in the latest Hotel Price Index, and rose in seven of them.

The largest fall was in Las Vegas - New Zealand’s number-one overseas destination outside of Australia - where hotel prices fell by 16% to $121 per night (NZD).

The cheapest country surveyed was Thailand, down 10% to $114. Italy was the most expensive country for New Zealand travellers, averaging $234, overtaking Singapore which saw a 15% fall to $217.

Hotel prices increased in a number of the traditionally popular, and expensive, cities for New Zealand travellers including New York and London, where prices spiked 11% and 8% respectively. Other popular cities Melbourne and San Francisco, also experienced strong price growth.

Average hotel prices in H1 2011 compared to H1 2010 (in NZD):

Destination Average price per room per night in H1 2011 % Change year on year
New York 322 11%
Honolulu 284 33%
London 262 8%
Vancouver 218 -1%
Singapore 217 -15%
San Francisco 205 10%
Sydney 197 1%
Melbourne 190 13%
Los Angeles 184 -4%
Nadi 180 -7%

David Roche, President of Hotels.com, comments: “This year, for the first time, dramatic political and natural world events, such as the Japanese earthquake and Arab Spring, have caused a pronounced level of hotel price volatility.

“However, despite some exceptional price movements, it is important to highlight that, overall, the picture has been one of gradual recovery with many room rates still on a par with what they were seven years ago, representing great value for the traveller.”

Focus on New Zealand

Rising hotel prices in New Zealand underlined the strength and resilience of New Zealand as a tourist destination despite the impact of the recent natural disasters.

Auckland and Wellington performed strongly with average room rates rising 6% to $125 and 11% to $122 respectively. Earthquake-hit Christchurch saw the steepest increase in average room rates up 17% to $117. Nearly all hotels in Christchurch’s central business district (CBD) shut from 22 Feb 2011, which led to a decrease in supply, pushing prices upwards for existing hotels in surrounding areas.

Queenstown remained the most expensive location, averaging $147 per night while popular tourist destination of Rotorua fell 5% to $103.

Average NZ hotel prices in H1 2011 compared to H1 2010 (in NZD):

Destination Average price per room per night in H1 2011 % Change year on year
Queenstown 147 0%
Auckland 125 6%
Wellington 122 11%
Christchurch 117 17%
Rotorua 103 -5%

ENDS

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