Cheap night in Rotorua

It's cheaper to stay the night in Rotorua than in many other New Zealand centres, a new survey has found.

The Hotels.com Hotel Price Index found the average double room in Rotorua in 2012 cost $124 per night, up 1 per cent from 2011. The average price across New Zealand was $146, down 2 per cent from the previous year.

Rotorua came out cheaper on average than many other centres, including Tauranga, Taupo, Gisborne, New Plymouth and Hamilton.

Tourism Industry Association (TIA) Rotorua regional chairman of hotels Gert Taljaard said Rotorua had a much higher proportion of tour and group business than other cities.

"This market is very important to Rotorua. However, the room rates for this market segment do tend to be lower than other higher yielding markets, like corporate and conference business.

"The reason the rates are lower is due to the volume of business a tour operator may bring into a hotel."

He said Rotorua also had a high proportion of fitness and leisure businesses - a market that looked for sharp deals when choosing accommodation.

Mr Taljaard, who is general manager of Sudima Hotel Lake Rotorua, said room rates came down to supply and demand.

"A very good recent example is the February result for TIA hotels. The month was full of great domestic and international events. This filled town over a number of days and the occupancy and rates reflected this."

The Index is an international survey of prices at the hotels, motels, lodges and backpackers featured on www.hotels.com.

This month the site was offering rooms at 75 Rotorua accommodation providers, ranging from $60 at Astray Motel & Backpackers or a private room at Crash Palace Backpackers Hostel to $485 per night at Nicara Lakeside Lodge.

The report also looked at the destinations most visited by overseas travellers, with Rotorua coming in fifth behind Auckland, Queenstown, Wellington and Christchurch.