Australian Hotels Set to Slash Prices


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According to this report Australian hotels are slashing their prices in a bid to entice holidaymakers away from overseas vacations.


Nearly a third of hotels in major cities like Brisbane, Sydney, Melbourne, Perth, Adelaide, Darwin and Hobart plan to lower their advertised rates before September, a global survey of more than 25,000 hotel operators found.


Run by travel review site TripAdvisor, the study found that Europe was the only place in the world where more hotels planned to drop their rates with Greece, Spain and Italy leading the way.


While European hotels were lowering their rates because of the economy, Australian hotels who specifically target leisure travellers were currently struggling for a different reason.


‘They are competing with destinations like Bali, Fiji and even Hawaii now’ said Hotel analyst Dean Dransfield.


‘The pricing to go to Hawaii is better than it’s been for a long time’.



Mr Dransfield also highlighted the trend of people increasingly booking accommodation online and taking their chance with availability in the hope of finding last minute deals.


“With later and later bookings it’s hard to hold your nerve and you become very vulnerable to who is cracking and reducing their prices’ he said.


Commenting on the intention, Tourism and Transport Forum chief executive John Lee said it was understandable prices would fall given the next couple of months were low season for many tourist destinations.


‘The number of Australians holidaying overseas is continuing to grow, and many leisure destinations in regional Australia are reducing their rates or offering bonuses like free nights to try to attract patrons’ he said.


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