Monday, July 12, 2010

Hotels Bolt Ahead In Guest Nights

Maybe the motel industry needs to find new ways to promote itself ;-)

The latest accommodation survey results for May have been released today by Statistics New Zealand. 

Those individual moteliers that have been experiencing a lull in trade can at least console themselves that it is just not them - others are feeling the pain. Generally, motel trade is solar powered. The warmer it gets, the better the trade. There are pockets of exceptions to this of course, particularly near popular ski areas, however most moteliers dread winter.

Overall, total guest nights in May 2010 declined by 6 percent compared with May 2009. After the first four months of the year that recorded increases in guest nights, the first trading month of Winter has broken a positive patch.

In a rare turning of tables, the North Island out performed the South Island by only achieving a 4 percent decline in guest nights, compared to the South Island's 9 percent decrease. 

Eleven of the 12 regions recorded less guest nights in May 2010 than in May 2009 with Auckland isolating itself from the pack with a 6 percent increase.

The regions showing the largest decreases were:
  • Canterbury, down 8 percent
  • Wellington, down 11 percent
  • Nelson/Marlborough/Tasman, down 16 percent. 
International visitor guest nights in May 2010 remained largely unchanged compared with May 2009. 

Kiwis appear to have started hibernating a little early this year with domestic guest nights decreasing by 10 percent in May 2010 compared with May 2009.

For the motel industry, the decline of domestic guest nights was significant and was probably largely responsible for the dramatic movement of guest night distribution between the accommodation sectors.

Hotels continue to scalp trade from other sectors by being the only sector recording more guest nights in May 2010 than in May 2009, up 3 percent.

All other accommodation types had fewer guest nights:
  • Motels, down 11 percent
  • Holiday parks, down 14 percent
  • Backpackers, down 10 percent. 
In May 2010, hotels had the largest share of total guest nights at 40 percent that was their highest share since the survey began. Motels had 32 percent, followed by backpackers at 16 percent.

Excluding holiday parks, the occupancy rate in May 2010 was 39 percent, compared with 42 percent in May 2009. 

Many motel operators may be wishing away 2010 already and optimistically looking forward to 2011. "Just one last tough winter."

Source: Click HERE

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