"In addition, hoteliers’ concerns about occupancy have given way to a sharper focus on average daily rates and revenue per available room." According to the experts, rather than trying to fill every room of the property, "hotels may be more willing to accept lower occupancy, limiting availability and then charging higher rates."
BDC Travel points out that fewer guests can lower hotels' operating costs, including housekeeping services, amid today's high inflation. "Hotels have adopted more sophisticated techniques for revenue and yield management in recent years," BCD's executive vice president of Global Sales & Marketing Jorge Cruz said in a statement. "Available rooms at preferred rates have been increasingly more difficult for business travelers to find. While it's important for travel buyers to negotiate good rates, it’s equally important for those rates to be available when needed. Otherwise, they end up paying market rates, which will increase the cost of their hotel programs in 2024."
Tokyo claims Asia’s priciest rooms, sets luxury standard
Asia’s hotel occupancy has continued its upward trajectory in 2023, with global growth in occupancy nearing typical levels across major gateway markets. Key cities in Asia have experienced substantial growth, ranging from 108% to 153% Year-to-Date (YTD) in 2023 compared to 2022, driven by a surge in demand that has also contributed to a rise in rates.
