The leading cities in occupancy growth are Beijing at 153%, Shanghai at 139%, Tokyo at 137%, Hong Kong at 124%, Singapore at 113%, Delhi at 111%, and Mumbai at 108%. Tokyo commands the highest average room rates in Asia, witnessing an increase from USD$140 to USD$281 between 2022 and 2023. Although there was a steep jump in rates in Q1-2023, the overall Q3-2023 increase was nominal at just 1%.
The top average room rates in Asia are recorded in Tokyo at USD$281 per night, followed by Seoul at USD$277, Singapore at USD$265, and Hong Kong at USD$246. In India, Bangalore has an average of USD$143, Mumbai USD$148, Delhi USD$135, and Chennai USD$96. In China, Hong Kong leads at USD$246 per night, followed by Beijing at USD$166, and Shanghai at USD$141. FCM Consulting anticipates a 3-8% increase in average hotel room rates, attributing this to rising operating costs and sustainability investments. Despite corporate Average Room Rates (ARRs) plateauing over the last 6 months, hotels are pushing for the increase in 2024.
Bertrand Saillet, Managing Director of FCM Travel Asia, suggests various solutions to counteract the price surge, including adjusting options to stay within budget, consolidating suppliers for leverage, and considering lower ‘star ratings’ expectations without compromising on service and quality, especially for those facing reduced travel budgets.
