High-end hotels in Sydney and Melbourne are so full that not only are rates for business travellers likely to rise, but companies could be forced to place travellers in three-star hotels or consider alternative options like private Airbnb accommodation, says American Express Global Business Travel Asia Pacific managing director David Reimer.
Hotel occupancy rates in Sydney and Melbourne are averaging nearly 90 per cent, meaning on the more popular nights, many of the hotels are fully booked.
“Particularly in Sydney and Melbourne, companies are going to have to be very diligent around thinking about their hotel programs in general,” Mr Reimer said.
“We’ve seen a strong uptick in tourism. Tourists need places to stay as well. For the first time in a number of years, corporates are competing for hotels with leisure travels. And some international leisure travellers are staying in a better class of hotel because it is more affordable [due to the weaker dollar].”
The American Express Global Business Travel 2016 forecast found high-end Australian hotel prices are expected to rise by an average of 3 to 5 per cent next year, outpacing the gains in most other parts of Asia. But the average is expected to be weighted down by