- 2022 second quarter direct online bookings for Choice Hotels Asia-Pac to the end of June were up 38 percent compared to the same period of 2021, and 155 percent compared to the same period of 2019.
- High demand in the midscale segment resulted in RevPAR across Asia-Pac hotels up almost 50 percent compared to the same period of 2019.
- Revenue Management services (RM) continues to be a key profit driver for Choice Hotels Asia-Pac franchisees, with hotels within the group achieving premiums on market RevPAR.
- The Choice Privileges loyalty program surpassed 500,000 registered Asia-Pac members in June with 25,000 new members added in the year to date.
Direct online bookings for Choice Hotels Asia-Pac have set new records in the first half of 2022, eclipsing pre-pandemic booking levels as Australians choose to travel within Australia.
Second quarter direct online bookings for Choice Hotels Asia-Pac to the end of June 2022 were up 38 percent compared to the same period of 2021, and 155 percent compared to the same period of 2019.
Choice Hotels Asia-Pac CEO Trent Fraser said the traditional seasonal slowdown over winter months hadn’t come this year. Bookings through the month of July and in August showed no indication of slowing down, he said
“Australian occupancy rates in Q2 are 15 percentage points above 2019 levels. That’s a significant gain on pre-pandemic trading conditions and goes against early winter slowdowns experienced in the past.
“Choice Hotels Asia-Pac properties in New Zealand have been slower to return to normal, with occupancy levels returning to just above pre-pandemic levels during Q2,” he said.
Mr. Fraser said he was optimistic these strong trends would continue along the current trajectory through to the end of the year with strong forward bookings already in place for the group’s metro and regional properties.
“We are yet to exhaust pent up travel demand. Australians have been eager to travel locally and are choosing to stay in Australia. Our regional hotels have enjoyed strong and steady bookings through the first half of the year and are breaking records in ADR and occupancy.
“There are many factors driving hesitation to return to long haul travel, which makes staying in Australia and exploring our regions more accessible and low risk option,” he said.
In capital city metro markets, the construction boom has supplied a steady stream of blue-collar bookings seeking apartment accommodation while travelling to work on jobs.
“Our Quality and Comfort brands suit this market perfectly, providing room to work and relax, with great locations that give guests easy access to work sites and to a range of dining options. Having access to kitchen facilities is important for this group who are working away from home,” Mr. Fraser said.
High demand in the midscale segment has resulted in RevPAR across the group up almost 50 percent compared to the same period of 2019.
Australian RevPAR is holding its own against comparable market competitors, with a two percent premium in Q2.
New Zealand properties continued to outperform market competitors in Q2, up 20 percent in the three months to June and enjoying a 25 percent premium for the year to date.
“New Zealand is finally starting to enjoy the return of international travel and holding its first ski season in two years. The domestic travel market is still cautious, seeking good value for money in the midscale segment,” said Mr. Fraser.
Revenue Management services (RM) continue to be a key profit driver for Choice Hotels Asia-Pac franchisees, with hotels within the group achieving premiums on market RevPAR.
Mr. Fraser said revenue management as a service has been incredibly successful for participating hotels since Choice Hotels Asia-Pac introduced it in 2017. In Q2 Australian hotels participating in the program achieved RevPAR seven percent above market, hitting an almost 11 percent premium for the year to date.
“In New Zealand, revenue management has made a significant difference for participating properties with 54 percent gain on comparable market properties in Q2 and 72 percent premium for the year to date.
“The insights our revenue managers provide into rate trends and market conditions are driving profits for our franchisees,” he said.
Choice Hotels Asia-Pac announced the rollout of an automated revenue management system for Australia and New Zealand franchisees earlier this year.
The Choice Privileges Asia-Pac loyalty program hit 500,000 members in June with 25,000 new members added in the year to June.
Mr. Fraser said the group was experiencing major changes in the corporate travel market who are chasing value-for-money stays. The ability to earn points when travelling for work and redeem them for leisure stays is also very important.
“The Choice Privileges loyalty program offers exclusive member rates, which is a strong driver of return business. Points transfer opportunities with Qantas and Virgin this year have given members more ways to redeem their points and see value from their stays,” he said.
Choice Hotels Asia-Pac forward bookings are strong leading into the second half of 2022. Mr. Fraser said the corporate travel market had adjusted to the new normal and learned to travel safely with COVID in the community.
“There’s a lot to be excited about as we move into spring and the start of the “real” holiday season,” he said.
