Hotel rates plunge worldwide

Of 77 destinations surveyed by Hotels.com, only five had recorded increases in average room rates in 2009, compared with the previous year. Auckland, the only New Zealand city looked at, sat in 75th place. The average room rate in Auckland of $130 was down from $172 in 2008, a 24 per cent drop. NZTRI professor Simon Milne interviewed by the Dominion Post said the industry was globally driven and prices were difficult to raise without solid delivery of service and quality product. "The only way forward in the way of rates is to look at the quality being delivered to the consumer. And that's where New Zealand does lag behind the world."

 
An example of where New Zealand lagged behind more progressive tourism centres was that even top-end properties still charged for internet access. "It's becoming increasingly uncommon around the world to be charged extra for internet. In New Zealand we see that can be about $30-$40 per night for access." New Zealand's hotel industry also fell behind in terms of staff-to-customer ratio, he said. Lower wages in Asia made competing Asia-Pacific destinations more attractive.
 
"If we are going to be raising performance in this area at a very competitive time, we have to look at the value for money and what we can justify charging. We still have a way to go in that regard."
 

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