Modest rise in Australian hotel prices and sliding Australian dollar nudge Aussie travellers to look to their own backyard

  • Prices paid for Australian hotel room nights rose by an average of only 2 per cent in the first half of 2015, according to latest Hotel Price Index
  • Darwin records the steepest decline in Australian hotel prices
  • Globally, hotel prices paid by travellers worldwide rose by just 1 per cent during the first six months of 2015, but North America and Asia registered steep increases for Australian travellers

SYDNEY – 2nd September 2015: With the cost of international travel creeping up for Australians as a result of the tumbling Australian dollar, and prices rising only modestly for hotel rooms nationally, according to the latest Hotel Price Index™ (HPI™) from™, domestic travel could have increased appeal for Australians for the remainder of the year as well as provide good value to international visitors.

The HPI found that the average price paid by both international and domestic travellers for a hotel room in Australia rose by a modest 2 per cent in the first six months of 2015 compared with the same period in 2014. Conversely, around 40 per cent of all domestic destinations analysed in the index experienced an actual decrease in hotel prices paid, with some centres recording significant declines.

The HPI is a regular report on hotel prices in major destinations across the world, tracking the movement in prices that people actually paid for their accommodation and providing valuable insight into the reasons behind these changes. The data is drawn from bookings made on the hundreds of thousands of hotels on the websites worldwide.

Darwin saw the steepest decline in hotel prices in Australia, with the average price paid falling 20 per cent year-on-year to $170 per night. Launceston saw the second highest drop, falling 6 per cent to $133 per night. The city also represented the best value accommodation in Australia in the first half of 2015. Cairns was the second-most affordable destination for hotel accommodation, setting travellers back an average of $150 per night, followed by Adelaide at $156.

Hotel prices paid rose only slightly in the eastern seaboard cities of Sydney (4 per cent) to $208 per night and Melbourne (5 per cent) to $177, while Brisbane declined a percentage point to $168 per night. The tourist mecca of Port Douglas showed the highest percentage rise, with prices paid increasing by 14 per cent to $200 per night, while holidaymakers in the Whitsunday Islands paid an average of $244 per night.

Katherine Cole, Regional Director, Australia, New Zealand & Singapore for the brand, said: “With the value of the Australian dollar continuing to drop, our currency isn’t going as far overseas as it was a year ago. The latest HPI data shows that hotels in Australia represent excellent value both to Australians as well as to foreign travellers.”

“While domestic hotels didn’t see a significant hike in prices, demand from international visitors and well as locals is on the increase.”

Ms Cole said also that Chinese travellers in particular were flocking to Australia in record numbers. According to the brand’s recent Chinese International Travel Monitor, Australia was named the most desired destination for Chinese travellers to visit in the next 12 months.

The average prices paid by Australian travellers for hotel accommodation rose significantly in cities across Asia in the first of half of 2015, with Beijing, Bangkok, Shanghai, Delhi, Osaka and Guangzhou all increasing by double-digit figures. New York held its position as the city where Australian travellers paid the most for a hotel room at an average of $332 per night. Australians also paid significantly more for hotel rooms in Orlando, Los Angeles, Boston and San Francisco.

Conversely, hotel prices paid dropped in Europe for Australian travellers in the first half of 2015. Moscow saw the biggest fall, with a 41 per cent decrease to $149 per night, followed by Istanbul, which fell 10 per cent to $154. Prices paid in Berlin and Nice also decreased 8 per cent to $147 and $223 respectively per night.

A snapshot of hotel prices paid in the first six months (H1) of 2015:

Australian hotel prices paid by international and domestic travellers in H1 2015:

Destination H1 2015 H1 2014 % change
Whitsunday Islands $244 $234 4%
Sydney $208 $199 4%
Port Douglas $200 $176 14%
Sunshine Coast $193 $183 5%
Canberra $188 $189 -1%
Perth $188 $193 -3%
Byron Bay $183 $182 1%
Scarborough $179 $187 -4%
Melbourne $177 $168 5%
Gold Coast $177 $171 3%
Newcastle $176 $166 6%
Hobart $172 $170 1%
Darwin $170 $212 -20%
Blue Mountains $170 $178 -4%
Brisbane $168 $169 -1%
Hunter Valley $168 $169 -1%
Adelaide $156 $152 3%
Cairns $150 $144 4%
Launceston $133 $141 -6%

International destinations where Australian travellers paid the most for hotels in H1 2015:

Destination H1 2015 H1 2014 % change
New York $332 $316 5%
Cancun $331 $294 13%
Boston $328 $282 16%
Honolulu $299 $277 8%
San Francisco $289 $253 14%

International destinations where hotel prices paid increased the most for Australian travellers in H1 2015:

Destination H1 2015 H1 2014 % change
Beijing $173 $129 34%
Orlando $172 $136 27%
Bangkok $107 $87 23%
Shanghai $177 $144 23%
Koh Samui $174 $142 22%
Abu Dhabi $192 $159 21%
Delhi $146 $121 20%
Los Angeles $268 $223 20%
Cebu $89 $74 19%
Queenstown $232 $196 18%
Osaka $161 $137 18%
Guangzhou $160 $136 18%