Hospitality Business Magazine

New Zealand hotel market surges ahead of global trend

Toledo Cityscape with Alcazar at dusk in Madrid Spain; Shutterstock ID 256865617

The latest Hotel Price Index™ (HPI™) from™ has revealed the average price paid by both international and domestic travellers for a hotel room in New Zealand increased by 6 per cent to $173 per night in 2015, compared with $163 in 2014.

The growth in domestic hotel prices comes off the back of a record-breaking year for international visitors to New Zealand in the year ending December 2015, with a 9.6 per cent increase in total arrivals on the previous year.

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.

Eighty per cent of Kiwi destinations included in the HPI saw an increase in the average price paid per night by all travellers, both domestic and international visitors, for a hotel room in 2015, with three cities seeing double-digit growth. Auckland recorded the greatest surge of 12 per cent to $175 per night, followed by the adventure capital of Queenstown, and Palmerston North. Both cities recorded growth of 11 per cent, with average room rates rising to $235 and $133 respectively.

Only four New Zealand destinations recorded negative growth in the average price paid for a hotel room in 2015. These included Christchurch, Dunedin, Napier and Nelson, all down 1 per cent to $163, $154, $154 and $148 respectively.

As the New Zealand dollar continued to slide against the US dollar, the price of accommodation increased for Kiwis who travelled to the States in 2015, with four cities dominating the top five list of where Kiwis paid the most for hotels worldwide. New York took out the top spot for the destination where Kiwis paid the most for a hotel room amongst destinations analysed in the report. A night’s stay in the Big Apple cost Kiwis an average of $341 per night in 2015. This was followed closely by Honolulu, which saw an increase of 10 per cent to $327, San Francisco by 19 per cent to $321 and Los Angeles by 11 per cent to $266.

The HPI revealed that Thailand remained exceptional value-for-money for Kiwis in 2015. Bangkok in particular offered travellers the best value accommodation in 2015, despite prices rising there by 13 per cent to $103 per night. This was closely followed by Phuket, which recorded a 6 per cent decline to $107 per night. The Malaysian capital of Kuala Lumpur came in third spot at $111 per night. Bali took the fourth place at $134 per night.

Katherine Cole, Regional Director, Australia, New Zealand & Singapore for the brand, said: “As the New Zealand tourism industry broke records in 2015, we saw demand soar across the hotel industry from domestic and international guest bookings. This is a promising sign for the local tourism industry and, with many major hotel development projects in the pipeline, we’ll see increased supply in the long term, which will be welcome news to holidaymakers planning a trip in New Zealand.”