IHG predicts room rate rises
Corporate travel managers in Australia can expect to see demand-driven increases in hotel pricing in the coming financial year, particularly in markets with little to no new supply such as Sydney and Brisbane.
Speaking at IHG’s (InterContinental Hotels Group) More Than A Room 2010 breakfast for corporate procurement managers at InterContinental Sydney, director, commercial of the group’s Australasian business, Anne Gill, said the effects of the GFC on corporate travel “in this part of the world” had abated.
“Demand has consistently and markedly increased across the board, particularly over the last four to six months. This will be reflected in room rates across all tiers of accommodation in the months ahead,” she said.
“Our hotels will be looking for opportunities to improve revenue and profitability, particularly through stronger premiums in peak demand periods and via dynamic pricing platforms for corporate accounts.â€
She added, “With the exception of Melbourne, all major business travel centres in Australia and New Zealand have seen significant, steady increases in occupancy, revPAR and ADR year to date.
“While Melbourne rates remain soft due to increased supply and lower demand relative to other major centres, occupancy is increasing and four out of the last five months have seen positive revPAR growth,†Gill said.
With occupancy levels to tighten, IHG has redeveloped its dynamic pricing platform to provide better flexibility for customers who need to maintain a management rate structure, while also capitalising on advantageous market fluctuations.
“We’ll be introducing a global IHG Strategic Pricing programme to our customers over the coming weeks,” Gill added.
“This is very much a tailored approach, where we identify on a case-by-case basis how our hotels can best deliver potential cost savings via market-relevant rates, particularly where there is an opportunity for the customer to shift share, provide best possible access to room inventory and assist in driving compliance to a client’s corporate travel programmes.”
Ian Jarrett
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