Brisbane-based travel tech firm FCM Consulting reports a 108-153 pc year-to-date growth for key Asian cities, while Tokyo dominates highest average room rates in Asia at USD 281 a night.

Asia’s hotel occupancy continues to climb in 2023 and key cities have seen occupancy growth of 108-153 pc year-to-date (YTD) 2023 compared to 2022, says Brisbane-based travel tech firm FCM Consulting.

According to FCM, global occupancy growth is close to normal across most gateway markets and growing demand is now fueling the rate increase this year. Chinese cities of Beijing lead at 153 pc while Shanghai follows up with 139 pc, Japan-capital Tokyo at 137 pc, Hong Kong 124 pc, Singapore 113 pc, with Indian cities of Delhi and Mumbai at 111 pc and 108 pc respectively.

The report says that Tokyo commands the highest average room rates in Asia at USD 281 a night, followed by South Korea-capital Seoul at USD 277, Singapore at USD 265 and Hong Kong at USD 246.

The report adds that in China, Hong Kong leads at USD 246 a night, Beijing averages USD 166 and Shanghai averages USD 141. FCM Consulting forecasts a 3-8 pc increase in average hotel room rates.

Hotel occupancy levels across the world have averaged 68 pc per month in 2023. Over the last 6 months, corporate ARRs have plateaued signaling rate stability. However, hotels are forcing a 3-8 per cent increase in 2024 due to rising operating costs and sustainability investments.

“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,” says Bertrand Saillet, Managing Director of FCM Travel Asia.