There have seldom been better times for the owners and managers of Australia’s hotels, with a strong economy and international tourism driving occupancy and average rates to record levels.
In the past 30-odd years the accommodation sector has experienced waves of over-development which then results in a glut of unsold rooms before demand picks up for both occupation and average rates. In the normal cycle of hotel developments, there would be any number of developers sniffing out opportunities to sink millions into new city hotels and resorts. Not so this time around, and the ramifications of this reluctance may be felt in our sector for years to come. In Sydney, for example, there is only one five-star hotel being built this decade – and that’s at Sydney Olympic Park.
Nobody can be forced to build hotels in Australia as the market is the ultimate decider as to whether a project should go ahead, but our city and state leaders do need to recognise that tourism, especially business tourism, can only prosper if there’s a realistic number of beds in a city to meet demand.
Hotels are in a winning situation with the implementation in recent times of “dynamic” pricing where they can maximise their yield according to market conditions. We and many in the conference industry work hard to ensure bookings materialise.
Hotels are really looking after their inventory much better to ensure they maximise their return which means they want to do business with PCOs who deliver the delegates in the numbers promised.
Hotels have changed from the nineties and now give reputable PCOs room allocations at good rates and then as they fill their hotels, the room rates increase as business is topped up.
 It is a turnaround for the reputation of PCOs as the room rates publicised in registration brochures are becoming cheaper than delegates can acquire through internet brokers or going direct.
Roslyn McLeod is the founder and managing director of Tour Hosts, a Sydney-based conference and event management company.
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