Australian Hotel Prices Plunge

Jan 19, 10 | 1:52 am

By Angela Saurine

Hotel prices in Australia have fallen by six per cent to an average $154 in the September quarter in the wake of the global financial crisis, largely due to a drop in business travel.

Sydney was the worst affected city in the country, with average room rates plummeting by nearly 12 per cent to $157, according to the Australian Bureau of Statistics quarterly survey of tourism accommodation.

It is now cheaper to stay in a hotel room in Sydney than it is in Melbourne, with average room prices in the Victorian capital only falling by 2.6 per cent to $161 over the same period.

Across Australia, revenue dropped by more than eight per cent.

In Cairns, which has seen a large drop in Japanese tourists, revenue fell by nearly 16 per cent per available room.

Tourism and Transport Forum executive director Brett Gale said a drop in business travel had been a major factor in the falls as companies reduced their travel budgets in response to the economic downturn.

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Source: The Australian