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Australian hotel prices rise across the board in 2011

Profile Photo By: H L
March 13, 2012

Australian hotel prices rise across the board in 2011

  • Australian hotel prices rise by 9%, well above global average of 4%
  • Biggest domestic price rises: Gold Coast up 19%, Brisbane up 18% and Perth up 17%

In a year burdened with global economic woes, political instability and devastating natural disasters, global hotel prices increased by 4% in 2011, according to the latest Hotel Price Index? (HPI?), predominantly due to continued strength in the corporate travel market.

Prices fell 2% in Asia year-on-year but increased in all other areas. The Pacific region increased by ?8%, 5% in North America, 4% in Latin America, 3% in the Caribbean and 2% in Europe and the Middle East.

David Roche, President of, said: ?The hotel sector is a good barometer for the global economy as a whole ? if business travellers are on the move, then confidence must surely follow.?

Hotel prices in Australia increased 9% to average $166 per night, ranking Australia equal third with Denmark on the list of countries with the highest hotel price rises. New Zealand was first with an 11% increase to $122 per night and Sweden was second after hotel prices rose 10% to $201 per night.

The Gold Coast, a popular destination for domestic and international holidaymakers and host venue for conferences and events, experienced the biggest increase of Australian destinations, up 19% year-on-year to $161. Brisbane registered an increase of 18% to $174 per night and hotel prices in Perth, with its booming economy and challenge with hotel room supply, rose 17% to $184.

Average prices in business and tourism hubs Sydney and Melbourne were up 8% and 9% to $181 and $158 respectively.

Of the 23 domestic destinations surveyed, 17 experienced price increases. The Australian destinations to see decreases in room rates were Launceston, down 16% to $131; the Blue Mountains, down 8% to $174; Alice Springs, down 7% to $129; and Canberra, down 2% to $184.

The HPI is based on bookings made on sites around the world and tracks the real prices paid per hotel room (rather than advertised rates) for around 142,000 properties across more than 19,800 locations.?

Global overview?

The strong performance of the Australian Dollar lead to price falls in well over half of the 51 countries analysed in the HPI. Five of the six lowest priced nations featured in the HPI were in Asia. Prices fell in popular travel destinations including: Cambodia, down 6% to average $68 per night; Vietnam, also down 6% to $89; the Philippines, down 12% to $99 and Thailand, down 3% to $117.?

Johan Svanstrom, Vice President and Managing Director, Asia Pacific for, said: ?Given the growing demand in both the leisure and corporate travel sectors hotel prices and occupancy rates across the Asia-Pacific region are likely to be a modest upward trajectory this year.?

Movements in hotel prices across Europe varied in 2011 as countries with strong economies became more expensive for Australian travellers and countries with struggling economies experienced significant falls in price. Hotel prices increased by 10% in Sweden, 9% in Denmark, and 6% in Switzerland, whereas prices fell in Poland by 11%, Portugal by 10%, Germany by 7% and Belgium by 7%.

The biggest fall in average hotel rates was seen in Egypt, where the Arab Spring uprisings led to a fall of 21% to $126.

Average prices in the US increase 2% to $186.

Top 5 price rises by country

(% price rises by country in 2011 compared with 2010 in AUD)

Destination????? 2011? ?2010?? % change
New Zealand?? ?122?????111????????????11%
Sweden?????????????201???? 182?????????????10%
Australia????????? ??166?? ? 152???????????? ?9%
Denmark???????? ??195???? 179????????????? 9%
Malaysia??????????? 133??? ?123??????????????8%

Top 5 price falls by country

(% price falls by country in 2011 compared with 2010 in AUD)

?Destination???? ?2011?? 2010? ?% change
Egypt????????????? ??? 126?????159??????? ? -21%
Japan??????????????? ?139???? 161???????? ?-14%
India?????????????????? 121?????137??????????-12%
Philippines?????? ?99?????? 112????????? -12%

There were mixed results among the top ten international travel destinations for Australians. Prices in New York, the most expensive city for hotel accommodation in the HPI along with Taormina, Sicily, fell 6% to average $268 per night, whereas Las Vegas, Los Angeles, Honolulu and San Francisco all recorded increases in average rates.?

Hotel rates in London and Paris remained relatively stable, averaging $218 and $220 respectively, while business and stopover hubs Hong Kong and Singapore experienced price rises due to healthy corporate travel demand and luxury hotel development.

Average hotel room prices in 2011 in AUD for top overseas destinations for Australian travellers:

Destination????? 2011? ?2010? ?% change
New York???????? ?268?? ?? 286?????????? -6%
Las Vegas?????? 140??????139????????????1%
Los Angeles? ??176???? ?168????????????5%
Honolulu??????? ?? 204?????195?????????????5%
Singapore?????????217???? 210????????????4%
London??????????????218?????219??????????? 0%
Hong Kong???????187?????175????????????7%
San Francisco 190?????172???????????10%
Paris??????????????????220???? 230?????????? -4%
Phuket???????????????125??? ?136???????????-8%

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