You may have been shocked to hear about a number of Australian luxury hotels closing due to poor booking numbers.
But for many travellers, it’s the luxury hotels in the country’s biggest cities that really matter.
So, if you’re planning to spend your holidays in Australia, you need to know exactly where you are going to stay and where you’re staying.
Luxury hotels in Melbourne and Sydney are closing their doors A new report released by hotel industry group Expedia reveals that the number of hotels in Victoria and Melbourne that are currently closed is almost double what it was five years ago.
In 2016, Expedia found that hotels in both cities were operating at a “significant” loss, with hotel rooms running for a mere $834 a night.
It’s not surprising that hotels are closing up shop, as the industry is facing some of the worst downturns in its history.
But in 2017, Expanse said the hotel industry was in trouble because the number and type of guests in Australia has dropped to a “new low”, while average rates for rooms in hotels are currently higher than they have been in decades.
“The hotel industry is in a severe downturn and has been for years,” said CEO David O’Brien in a statement.
“Many hotels are operating at an operating loss and are struggling to pay their bills, which is putting a strain on hotels across the country.”
It’s a worrying situation, but not as dire as it might seem.
Luxe hotel rates have increased by a whopping $1,400 since 2016, according to the Australian Institute of Hoteliers (AHI).
It’s clear that many travellers are choosing to stay in luxury hotels rather than the hotels they want to stay at.
Luxor is still one of the cheapest hotels in Sydney and Melbourne, while The Peninsula in Sydney has been the most expensive hotel for the past few years.
The AHI also said that luxury hotel occupancy rates have been falling, suggesting the industry has hit a plateau.
But while the decline in occupancy rates has been quite dramatic, the decline is not entirely a result of people choosing to spend their holiday in luxury hotel.
The number of people in the industry that spend their holidays in hotels has increased dramatically since the mid-2000s.
According to the latest AHI data, there were approximately 2.8 million people living in hotels, and more than 1.2 million people using hotels as their primary accommodation, the report found.
Expedia’s findings show that in 2017 there were 5.2 billion people living within 100 kilometres of major urban centres, compared to just over 1.4 billion in 2016.
Of these, the majority spent their holidays at hotels in major cities.
However, the average occupancy rate of hotels across major Australian cities has dropped from 8.6 per cent in 2016 to 7.9 per cent last year.
Lux hotel occupancy has dropped dramatically, but occupancy rates are still significantly higher than the national average The occupancy rate for hotels in Perth, Melbourne, Brisbane, Adelaide and Adelaide was the highest at just over 6 per cent, with the lowest rate at just under 4 per cent.
“It’s not just the occupancy rate that’s down.
The trend is clear, as many of the hotels are not the ideal place to stay, with rates falling as the number people within a kilometre of the city increases,” said O’Connor.
“When people have to choose between staying in a hotel, the cheaper option, and spending time in a place they enjoy, the hotel is a less attractive choice,” he added.
The occupancy rates of luxury hotels across Australia are also declining.
“In 2016, hotels operated at a net loss of $1.2 trillion.
Over the past five years, the industry lost $1 billion, and lost over $2 billion more annually,” Expedia said.
“This year, the occupancy rates for hotels fell, to 6.2 per cent from 7.5 per cent.”
In 2017, the peak occupancy rate was around 8.1 per cent for luxury hotels, but now that occupancy is at a new low of 6.1 percent.
Luxory hotels can still offer some great value, however, because they can offer the cheapest rate possible.
There are several things you can do to help save your hotel room money The biggest tip is to make sure you’re getting the best rate possible when booking your hotel.
There’s a number the AHI recommends you consider when booking a hotel stay, such as the price you want to pay per night, the length of stay, and the amount of food and beverage you’re allowed.
The cost of meals can be a key factor in your decision to stay with a luxury hotel, so make sure that your hotel’s meal plan includes plenty of choices.
There is a lot of room for improvement when it comes to how much you’re charged per night for a hotel room.
But if you can save enough money, you can be sure that the price will be significantly lower than what you would pay