Amex Global Business Travel’s Hotel Monitor 2024 Report forecasts hotel prices will rise in most global locations despite a decline in leisure travel demand. In Australia and New Zealand, room rates could rise by up to 6.8 per cent.
The moderate hotel rate rises in Australasia come as inbound visitor numbers rebound quickly to almost 2019 levels with new property openings in the pipeline.
Brisbane leads the Australasian pack with hotel prices predicted to rise by an average of 6.8 per cent next year followed by strong growth in Adelaide (6.4%) and Perth (6.1%).
Melbourne room rates could see an average increase of 5.2 per cent followed by Sydney (4.9%) and Auckland (3.5%).
Melbourne is one of the top three cities for hotel investment in Asia Pacific with 44 projects on the go that represent 8,642 rooms.
Australia and New Zealand also had the highest occupancy rate in the APAC region this year amid strong recovery.
Hotel rate rises overseas
Internationally, the Amex GBT Hotel Monitor 2024 forecasts rates will increase up to 12.6 per cent in some cities due to staffing shortages limiting supply.
It predicts significant rate increases in North America, Europe, and Asia, especially in major convention destinations.
In North America, hotel prices will rise by an average of 12.6 per cent in Chicago followed by Boston (11.3%), Vancouver (8.9%), Dallas (8.2%), NYC (6.8%) and San Francisco (6.2%).
In Europe, Paris-bound travellers can expect a rate rise of 11 per cent followed by Amsterdam (10.8%), Dublin (10%), Berlin (9.4%), London (9.1%) Barcelona (9%), Edinburgh (8.7%) and Rome (6%).
After modest price rises in 2022 and the reopening of China in early 2023, Amex GBT expects significant rate increases in Asia. India leads with a predicted 15 per cent rise for Mumbai and 12 per cent for Delhi.
China hotel rates will rise up to 8.4 per cent while Jakarta (10.9%), Singapore (7.5%) and Kuala Lumpur (7%) will also see significant price hikes.