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- APAC hotel occupancy moves towards recovery with a strong outlook for Q4
APAC hotel occupancy moves towards recovery with a strong outlook for Q4
As countries in Asia Pacific actively lift travel restrictions, Amadeus’ business intelligence data is showing strong recovery indicators for the remainder of 2022, and evidence of growing traveler confidence as the sector looks towards 2023.
- For the months of July – September 2022, Amadeus business intelligence data shows APAC hotel occupancy reached an average of nearly 60%, just three percentage points shy of the same months in 2019.
- Australia and New Zealand are leading the region in group business for Q4
- Business travel continues to rebound with hotel bookings made on the GDS tripling in September 2022 compared to January.
As countries in Asia Pacific actively lift travel restrictions, Amadeus’ business intelligence data is showing strong recovery indicators for the remainder of 2022, and evidence of growing traveler confidence as the sector looks towards 2023.
For the months of July – September 2022, APAC hotel occupancy hit an average of nearly 60%, just three percentage points shy of the same months in 2019, according to Amadeus’Demand360® data.
For September 2022, hotels in Singapore saw an occupancy average of 75% with a 13% growth in average daily rate and 10% increase in RevPAR compared with the same timeframe in 2019, while October 2022 bookings are outpacing pre-pandemic levels – a 2% increase from 3 years ago.
Mirroring the recovery of occupancy rates is the stabilization of booking lead times. 2022 now virtually matches the booking behaviors seen in 2019 with 64% of global bookings made in the 0–7-day window versus 60% of bookings made in this timeframe in 2019. As booking lead times improve, this implies increasing traveler confidence as people make longer term commitments globally.
Moving from leisure to group travel, occupancies in APAC region for Q4 2022 till Q1 2023 are consistently between 2-3% shy of pre-pandemic levels as the conference sector rebounds in 2022. Australia and New Zealand are reporting strong conference season numbers for the rest of the year.
Looking ahead, Amadeus data shows that APAC group bookings are now also starting to extend more confidently into next year, with 1.8 million bookings already made for H1 2023.
Another segment seeing steady recovery as the year continues is business travel. 2022 is closing the gap to 2019 levels according to Amadeus’Agency360® data, which reveals that APAC hotel bookings across all major global distribution systems (GDS) tripled in September compared to January 2022. At the start of this year, hotel booking volumes fell behind 2019 performance by 77%, but this gap has progressively closed over the months, with GDS bookings in September finishing 17% behind 2019 levels.
This is supported by a newAmadeus survey of global travel agents , in which 55% of agents from APAC say they are using GDS platforms more now than in 2019, the highest percentage out of all regions.
Maria Taylor, Head of Commercial, Asia Pacific, Hospitality, Amadeus, concludes, “It is extremely encouraging to see such positive hospitality trends in Asia Pacific. As countries start to ease restrictions, demand for travel looks set to continue to build in the forthcoming months. It is essential that hoteliers and destination marketers have accurate, forward-looking data insights to enable them to maximize their revenue strategies, confidently plan for larger groups, and consider their distribution mix to offer a wide variety of promotions and accommodations. With this insight, they can also understand more about who istravelling, enabling them to deliver a truly differentiated experience.”
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