HBI Staff | Mumbai 
Most gateway markets show a return to standard occupancy growth worldwide. Across key Asian cities, there’s been a substantial increase of 108-153% compared to 2022. This surge in demand is the driving force behind the rate hike this year.
Beijing is in the lead at 153%, followed by 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
The Average Room Rates in Asia experienced a significant rise, climbing from USD 33 in 2022 to USD 173 in 2023. Consequently, the Q3-2023 saw only a slight 1% increase due to the substantial surge earlier in Q1-2023.
Tokyo stands out with the highest average room rate at USD 281 per night, followed by Seoul at USD 277, Singapore at USD 265, and Hong Kong at USD 246.
In India, Bengaluru recorded USD 143, Mumbai USD 148, Delhi USD 135, and Chennai USD 96.
In China, Hong Kong leads with an average of USD 246 per night, Beijing at USD 166, and Shanghai at USD 141.
FCM Consulting Forecasts a 3-8% Increase in Average Hotel Room Rates
Worldwide hotel occupancy rates have maintained an average of 68% monthly throughout 2023. Corporate Average Room Rates (ARRs) have steadied over the past 6 months, indicating rate stability. Despite this, hotels are planning a 3-8% increase in 2024, driven by escalating operating expenses and investments in sustainability.
“To counter the increase in prices while managing reduced travel budgets, we have several solutions for our clients such as changing options to stay within budget, consolidating suppliers for leverage, and considering lower ‘star ratings’ expectations without compromising on service and quality, said Bertrand Saillet, Managing Director of FCM Travel Asia.
