Asia’s hotel occupancy continues to climb in 2023 – TravelDailyNews Asia

Asia leads in hotel occupancy growth, with Tokyo topping average room rates. FCM Consulting predicts a 3-8% rate hike in 2024.

Global occupancy growth is close to normal across most gateway markets. Asia has seen key cities occupancy growth of 108-153% YTD-2023 compared to 2022. Growing demand now fueling the rate increase this year.

Beijing leads at 153%, Shanghai 139%, Tokyo 137%, Hong Kong 124%, Singapore 113%, Delhi 111%, and Mumbai 108%.

Tokyo Commands the Highest Average Room Rates in Asia

Average Room Rates in Asia have gone up by USD$33 to USD$173 from 2022 versus 2023 which is why Q3-2023 saw a nominal increase of just 1 per cent due to the steep jump earlier in Q1-2023.

Tokyo leads with the highest average room rates of USD$281 a night, followed by Seoul at USD$277, Singapore at USD$265, and Hong Kong at USD$246.

In India, Bangalore averaged USD$143, Mumbai USD$148, Delhi USD$135, and Chennai USD$96.

In China, Hong Kong leads at USD$246 a night, Beijing averages USD$166, and Shanghai averages USD$141.

FCM Consulting Forecasts a 3-8% Increase in Average Hotel Room Rates

Hotel occupancy levels across the world have averaged 68% per month in 2023. Over the last 6 months, corporate ARRs have plateaued signaling rate stability. However, hotels are forcing a 3-8% increase in 2024 due to rising operating costs and sustainability investments.

To counter the increase in prices while managing reduced travel budgets, we have several solutions for our clients such as changing options to stay within budget, consolidating suppliers for leverage, and considering lower ‘star ratings’ expectations without compromising on service and quality”, said Bertrand Saillet, Managing Director of FCM Travel Asia.

Student at the Department of Business Administration of the Athens University of Economics and Business.