Room rates across Australia are set to rise next year as the corporate and government travel markets show signs of growth, according to Accor.
Research by STR Global shows that occupancy rates in key cities have been strong over the last 12 months, with Sydney averaging 85.2% and Melbourne 83.7%. On the back of those strong figures, rates are expected to rise between 7% and 10% in Sydney, and around 7% in Melbourne and Perth. Those in Adelaide, Canberra and Brisbane are forecast to rise between 3% and 5%.
“Australian travellers have had a good run in recent years, with excellent rates on offer, but now that the election is over we are expecting a re-commencement of some resource projects and increased government travel,” Simon McGrath, chief operating officer Accor Pacific said.
“Our corporate clients are also telling us that 2014 will see more hectic travel schedules as confidence is on the rise, which is a great sign for the industry.”
He also reported a trend for business travel buyers becoming “increasingly strategic” with their hotel programs with national and global deals playing a greater role. That trend is likely to increase in 2014, he added.
