RWC effects vary for Rotorua and central hotels

For hotels in Rotorua and the wider Central Park area, 2011 was a very unusual year, with disruptions to traditional travel around the Rugby World Cup and increasing numbers of "last minute" bookings.

Speaking at the New Zealand Hotel Council's 2011 Annual Operating Survey presentation in Rotorua on Thursday, executive officer Rachael Shadbolt outlined the effects on member hotels.

Its nine Rotorua members and 1369 rooms recorded:

- a 1.4 point reduction in occupancy rate to 64.6 per cent

- a $3.80 increase in average room rate to $109.20

- a $9 million increase in revenue to more than $47.5 million

- a contribution of $39 million to the region - 34.5 per cent up on 2010

Shadbolt said the Rugby World Cup resulted in strong room rates on key game days, but this gain was offset by almost total displacement of traditional corporate and conference business during September and October.

Rotorua chairman Fraser McKenzie, of Novotel Lakeside Hotel, said moving the school holidays to align with the Rugby World Cup also had a significant impact on domestic travel.

"Traditional spring group series business was noticeably down compared to previous years. Conversely, and in contradiction to what we know about major event business patterns, August and November proved to be comparatively strong months in Rotorua."

Last minute bookings, made fewer than eight days in advance, increased to 42 per cent of bookings nationally. This proportion was only 36 per cent in Rotorua, but was still six points up on 2010.

McKenzie put this down to the high level of inbound group tourism in Rotorua - at more than a third of hotel business, it is the highest in the country.

"This tends to lengthen the average booking lead time somewhat. However, we have noticed lead times on conferencing and free independent travel bookings trending shorter."

In the Central Park region - including seven hotels in Taupo, Tongariro, Napier and Gisborne:

- Occupancy was steady at 51.9 per cent

- The average room rate of $160.10 was the highest in New Zealand

- Member hotels generated almost $34 million in revenue from 664 rooms and contributed $24 million to the region

The high room rate was driven by towns hosting Rugby World Cup games and Central Park chairwoman Kathy Guy, of Wairakei Resort and Tongariro Chateau, said Napier benefited most from the tournament, although other centres did host teams and enjoy some business from Cup visitors.

"More than half Central Park's hotel business is free, independent, leisure travel that tends to have later booking patterns than other markets. [The shift towards later booking] does present some challenges for hotels and we are evolving our operations to accommodate this."

FACTS & FIGURES

(from members of the New Zealand Hotel Council in 2011)

*Excluding Christchurch, Auckland's 77.1 per cent was the highest occupancy rate, followed by Wellington on 73.6 per cent and Rotorua on 64.6 per cent.

*The Central Park region - Taupo, Tongariro, Napier and Gisborne - had the highest average room rate at $160.10, followed by Auckland at $157.60 and Wellington at $150.10.

*The average five-star room rate was $217.50, up $39.33 on 2010

*The average 4.5-star room rate was $148.00, up $15.90

*The largest source of business was independent/leisure travellers, making up 40 per cent of rooms sold, followed by corporate on 23 per cent and tours and groups on 18 per cent.

*New Zealanders made up 54 per cent of hotel customers, well ahead of the second largest market - Australia on 16 per cent

*42 per cent of bookings were made up to seven days prior to arrival, 33 per cent were made eight to 30 days out and 25 per cent were booked more than 30 days in advance