We are well into the first quarter of 2023, with plenty of ups still to come for international travel and migrant visa holders. Take a look at our latest business update below.
Our team of Revenue Analysts have been busy over the past two months, taking advantage of a restriction-free year and increasing the overall Average Daily Rate (ADR) by 93% in comparison to the first two months of 2022. While online travel agencies have revenue management systems, optimisation can often be affected by external factors. The Stay Hub's team of in-house revenue professionals provide expert oversight on a daily basis to deliver continuous results. This ensures your property's revenue optimisation doesn't rely on automated pricing algorithms.
The Stay Hub’s ADR for January sat at $348 and has continued to trend upward to $379 in February. In the below chart, you can see a property breakdown across the board for the beginning of 2023.
Our average occupancy for 2023 so far is a solid 88.5% with plenty more highlights to come. This is up 8% from the start of last year. Further to this, our overall Adjusted Revenue Per Available Room (Adjusted RevPAR) has skyrocketed to an increase of 109%, sitting at and average of $321 for the last two months.
THE RETURN OF INTERNATIONAL VISITORS
International demand has been growing at a steady pace and is set to hit a peak between July and August with the FIFA Women's World Cup being hosted across New Zealand and Australia. Tournament CEO Dave Beeche expects between 20,000 to 40,000 Americans will make the trip. Add European fans to the mix and it will be a busy few months!
At The Stay Hub, we have already started seeing early bookings for the event, with our Analysts anticipating a sharp rise in the lead up to the tournament. Early forecasting shows a steep increase in both the ADR and occupancy for July and August. If you were planning on blocking out your property calendar during these months, you might want to reconsider!
In more good news, recent data published by Statistics New Zealand has shown a significant increase in migrant numbers since our borders reopened last August. Kiwibank Chief Economist Jarrod Kerr has forecasted a significant net migration of over 30,000 people entering the country in 2023, saying “while rising net migration will provide some relief to firms crying out for workers, it will also add to the demand for everything”. On top of foreign workers travelling here for short-term stays, the desire for any migrants to travel and experience our country’s largest city will certainly be one of those demands.
We'd love to give you a free rental appraisal so you can learn what you could earn!
* Call 0508 STAY HUB (782 9482)
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