A global provider of hospitality software solutions and services, has released the findings of its 2024 APAC Hospitality Impact Study, conducted in April this year.
The survey by Agilysys* of over 1,000 travellers from Australia, Hong Kong, New Zealand, and Singapore unveils critical insights into guest preferences and spending habits, highlighting substantial opportunities for revenue growth in the hospitality sector.
The study reveals that 68% of APAC travellers would increase their hotel spending for personalised experiences, with 73% willing to pay up to 30% more for room upgrades when offered post-booking. Additionally, 66% of respondents would likely spend more if wait times were reduced across all hotel experiences, and 68% would increase spending when a robust loyalty program is in place.
Interestingly, the research uncovered a significant “rebooking paradox” in the APAC market: despite high satisfaction levels (86%) and perceived value for money (61%), only 37% of travellers choose to return to hotels they’ve previously enjoyed.
“Our research uncovers a clear message: APAC travellers are willing to spend more for tailored, efficient, and memorable experiences,” said Tony Marshall, VP Managing Director APAC, at Agilysys. “Hotels that fail to offer personalised guest experiences are leaving substantial revenue on the table.”
The study identified several key factors driving increased spending among APAC travellers. Staff interactions play a crucial role, with 46% of respondents valuing staff who go the extra mile, 41% appreciating personalised activity recommendations, and 30% being influenced by staff recalling previous conversations. Personalised touches also significantly impact, as 40% of guests value being given their favourite room, 28% are likely to spend more when restaurant staff remember their preferences and 57% still respond positively to small surprises like pillow chocolates.
RevPar or RevPag?
The 2024 APAC Hospitality Impact Study emphasises the need for a shift from traditional Revenue Per Available Room (RevPAR) metrics to a more holistic Revenue Per Available Guest (RevPAG) approach. This transition allows hotels to capture the full spectrum of guest spending and tailor their offerings accordingly. “To maximise profitability, hoteliers must leverage advanced Property Management Systems that provide real-time, data-driven insights into guest preferences,” Marshall added. “By adopting a RevPAG focus, hotels can unlock hidden revenue streams, enhance guest satisfaction, and foster long-term loyalty in the competitive APAC market.”
HDNZ Hotel Performance Focus
The New Zealand hotel market faced a challenging August 2024 with a notable decline in key performance metrics according to Hotel Data New Zealand (HDNZ). RevPar for major hotels dropped by 13.5% year on year with occupancy levels falling from 68 % to 63%.
Auckland hotels experienced a decrease in demand of seven percent while supply increased by the same rate. The opening of the 303 room Sky City Horizon on August 1 marked the fifth major hotel opening in the city this year, with two more expected to open in the next three months.
Christchurch occupancies dipped by six percentage points due to a weakening demand and a 5.5 percent increase in supply with the addition of 221 rooms across three hotels since August 2023. Wellington hotels continued to report a decline in business and government related travel.
Rotorua and Queenstown markets however, experienced an increase in occupancy levels with a strong increase in room nights from China and various Asian countries heading to Rotorua, and Queenstown airport reporting a 10.9 percent increase in passenger arrivals in August.
According to Horwath HTL – Hotel Tourism and Leisure – RevPar for the quarter ending August declined by 14 %, dropping back to 2019 levels. “This again demonstrates the impact of seasonality and the importance of creating domestic and international demand during off-peak periods.”
AHICE 2024
The Aotearoa Hotel Industry Conference and Exhibition (AHICE), the largest and most influential hotel investment and operations summit, is set to return to Christchurch next Wednesday 25 and Thursday 26 September. The event aims to further stimulate investment and advance growth in New Zealand’s hotel sector. For the full programme and to register, visit ahiceconference.com/aotearoa
Recent hospitality investment in New Zealand includes:
New openings:
- Te Arikinui Pullman Auckland Airport (Accor)
- InterContinental Auckland (IHG)
- Horizon (SkyCity)
- JW Marriott Auckland (Marriott)
- Soho Hotel Auckland (Capstone Hotel Management)
- Abstract Hotel (Capstone Hotel Management)
- Te Karaka Lodge (Capstone Hotel Management)
- Drifter Christchurch
- Quest on Kilmore, Christchurch
- Quest on Cambridge, Christchurch
Refurbishments: - Grand Millennium Auckland (Millennium Hotels and Resorts New Zealand)
- Millennium Rotorua (Millennium Hotels and Resorts New Zealand)
- InterContinental Wellington (IHG)
- Nugget Point Hotel Queenstown (Capstone Hotel Management)
Upcoming New Zealand hotel openings include: - Tribe Auckland (2024) (Accor)
- Hotel Indigo Auckland (2024) (IHG)
- Grand Chancellor Auckland (2024) (Grand Chancellor Hotels)
- Pullman Hamilton (2026) (Accor)
*This report is based on a survey of 1,014 travellers from Australia, Hong Kong, New Zealand, and Singapore who have frequently stayed in luxury and boutique hotels over the last 12 months (April 2023 – April 2024) and was conducted in April 2024.
Respondents were asked about their travel preferences, spending habits, and factors influencing their hotel experiences. It offers a roadmap for hoteliers to enhance their guest experiences, increase revenue, and stay competitive in the rapidly evolving APAC hospitality landscape.* https://info.agilysys.com/l/76642/2024-09-16/cp495v
