New Zealand hotel room rates are not expensive

Abstract

The ‘hotel experience’ is changing – and so are hotel room prices. New Zealand hotel room rates have increased significantly since 2000, as has hotel room occupancy. New Zealand hotel room rates are cheaper than many other international destinations. There are good reasons for New Zealand hotel room prices (ADR’s) to be maintained and could even increase. However, to justify increased hotel room ADR’s the New Zealand hotel industry must provide increased value. The onus is on the hotel industry to change the consumers mind set away from ‘price’ to that of ‘the value of hotel experience’.

The purpose of this research brief is to add to, and balance the public commentary that New Zealand hotel room Average Daily Rates (ADR’s) are expensive (see Appendix A for public commentary), while challenging the hotel industry to emphasise the value of the hotel experience.