While 2016 was marked by uncertainty and political instability in Europe and parts of North America, it was mostly business as usual in Asia. However, in today’s connected and globalised world, nothing happens in isolation. As hoteliers in the Asia-Pacific region wait to assess the fallout from 2016 on hotels in Europe, they nonetheless should be getting proactive about limiting their own downside risk in 2017.
The death knell for rate parity has already been sounded in Europe, but regulators in Australia and New Zealand are keeping the practice alive, complicating hotels’ efforts to manage revenue and profitability.
The depreciation of the Australian dollar in the last year has resulted in a happy situation for the tourism industry Down Under. International tourists taking advantage of the cheaper Australian dollar have been arriving in increasing numbers, while more Australians are opting to vacation at home rather than travel overseas.