INDUSTRY PERFORMANCE
Our team of Revenue Analysts have been busy at The Stay Hub over the past month, increasing our owners’ nightly rates and overall reservation revenue by +30% above the online travel agents’ (OTA's) recommended pricing, without negatively affecting occupancy.
The OTA's revenue management systems are effective, however having experienced two of the most disruptive years of travel patterns known in the industry, their system algorithms are struggling to ensure revenue optimisation.
That's why we have been investing heavily in our Revenue Management team and technology. Our manual oversight and manipulation of our nightly rates across our portfolio, with our teams' local knowledge of special events, supported by sophisticated technology, are paying substantial dividends for our owners.
Colliers, in their recent Hotel review, have confirmed that rates are up across the industry, and there appears to be very limited price resistance.
Lead in times are still shorter than pre-Covid times across the industry, most likely because some potential guests are still a little cautious about the changing Covid situation. We are, however, starting to see a shift in this pattern, with increasing forward bookings particularly around special events and over the summer season.
The Stay Hub Performance - July
The Stay Hub Performance – Historical Occupancy
REVENUE FORECAST
At The Stay Hub, we are experiencing a significant increase in demand around the significant event calendar that we have to look forward to throughout 2022 and 2023. Proof that travellers are gaining more confidence around the Covid situation and that their plans will not be interrupted by lockdowns.
August has no special events to assist in driving performance, and whilst we will exceed Covid times, unfortunately we are not expecting it to be a particularly strong month.
September see’s Billie Eilish at Spark Arena, The All Blacks play Australia at Eden Park and more, and we are already seeing some strong forward bookings for September off the back of these events .
October has school holidays, Rugby World Cup, Labour Weekend, Kings of Leon, George Ezra and Golden Week. With these events, coupled with spring in the air, we are forecasting a strong October, particularly in terms of Average Daily Rate.
These events, combined with the border opening and two years pent up demand for international travellers wanting to visit New Zealand, will translate into strong results for the spring, and in particular, our summer. The UK, USA, Asia, and in particular, China - with Chinese New Year in January - will all be looking to get their first international getaway to our fair shores in years!
We'd love to give you a free rental appraisal so you can learn what you could earn!
* Call 0508 STAY HUB (782 9482)
* Complete our rental appraisal form here
* Click below to book a 15 minute discovery call at your convenience
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