- RevPAR in Q3 across Australia was 45% compared to Q3 2019
- Daily rates were up 26% on average compared to the same time in 2019
- Direct online bookings have also seen a sharp rise
Data from Choice Hotels Asia Pacific shows that revenue per available room (RevPAR) has risen strongly across its Australian and New Zealand hotels during the third quarter of 2002, compared to pre-pandemic values.
Specifically, RevPAR in Q3 across Australia was 45% higher than the same period in 2019, with daily rates up by 26% on average compared to the same year.
Australian hotels within the group outperformed the market segment RevPAR by close to 30%, and hotels using the revenue management service offered by the group outperformed the market by almost 45%.
Across the ditch in New Zealand, RevPAR in Q3 was up by 18% than the same period in 2019. Average daily rates were up 14%. Hotels in New Zealand outperformed the comparable market segment RevPAR by 23%, with revenue-managed hotels seeing a 154% RevPAR bonus on similar hotels in Q3.
Trent Fraser, Choice Hotels Asia Pacific CEO, said putting energy into both revenue management and monitoring market conditions continued to pay off for participating hotels. He also added that results showed how great a different revenue management made in tight market conditions.
“The current economic conditions are creating a perfect storm for a pure-play franchise group like Choice Hotels Asia Pacific to really deliver for hotels in the group and attract new businesses,” he said.
“Small business owners had a tough time through the pandemic, which was followed by an incredibly busy winter rebound.
“We’ve seen staffing shortages across the hospitality industry, which has meant many owners are hands on in their businesses, and now we face inflationary pressure leading into 2023.
Trent Fraser, Choice Hotels Asia Pacific CEO
“As these pressures impact hotel businesses, it will open opportunities for engagement with us, with particular interest in revenue management and driving profitability, driving bookings, distribution and procurement savings.”
Direct online bookings booming
Data from Choice Hotels also revealed that direct online bookings have boomed in 2022, with Q3 bookings through their CHocieHotels.com and the Choice Hotels App up 132% compared to the same quarter in 2023. Their loyalty program, Choice Privileges, is also nearing 5210,000 members across Australia and New Zealand.
“These channels have broken previous year’s direct online booking records and it’s exciting to see our investment in these technologies and continued local and regional marketing efforts delivering room nights for our hotels,” Mr Fraser said.
The chain has also been popular with hotel owners and investors as the business model allows for them to work with hotel management groups and therefore can facilitate growth in a hotel portfolio while not actively engaged in the day-to-day operations.
“Our tried and tested model with hotel management groups is attracting new opportunities. We recently opened our fourth property with 1834 with Quality Apartments Melbourne Central. Investors get the global brand recognition, regional and global marketing initiatives, and a solid loyalty program, alongside professional management of day-to-day operations,” he said.
Mr Fraser concluded by acknowledging that as hotel owners emerge from recovery mode next year and face new economic challenges, optimising business models and finding the best opportunities on costs will become front of mind, in what is set to be a tight segment for some time.
