Busiest week of the year?

The end of year peak corporate travel season in Australia essentially runs from the end of September school holidays until early December. We have been flat out every day since Melbourne Cup (Nov 1) and this week was the ultimate for Australian hotels.

Here is what happened:

* Adelaide - filled last night
* Brisbane - filled Tuesday, Wednesday and almost Thursday
* Canberra - filled Tuesday, Wednesday
* Melbourne - filled Wednesday, Thursday
* Perth - filled Tuesday, Wednesday, Thursday
* Sydney - filled Tuesday, Wednesday and almost Thursday

It got so busy, the cities so full and we ran out of our allotments so early (especially for Perth) that we had to give up on this week enquiries on Tuesday and focus on the week after.

There looks to be another 2 or 3 weeks left before things quieten down so if you have any travel to do in that time and need to book accommodation, make sure you organise your hotel before you book your flights!

November - Peak Corporate Travel Season

November tends to be one of the busiest corporate travel months of the year as everyone tries to get business done before everything shuts down over the Christmas holidays.

Obviously this year has been a rough one for corporate travel so exactly how busy November would be was anyone's guess. Corporate demand keeps cities busy at this time of year, but its the events and other things happening that fills the hotels and brings our service in to demand.

As I mentioned in an earlier post, the month got off to a great start thanks to Tiger Woods playing in the Australian Masters in Melbourne. I didn't give Britney Spears much credit for just how busy it was but it seems I may have been mistaken as the weak after when she was in Sydney, along with Pearl Jam, demand was through the roof. The same week there was a large rail conference in Adelaide that made it crazy busy.

The only frustration with both events was that I knew they were coming, I just didn't imagine the demand for rooms would be to the level it was. The phones rang off the hook and while I had some rooms ready to go, it was nowhere near enough and it was disappointing have to tell so many people that a city was full.

This week, Britney Spears and Pearl Jam came to Brisbane, in the same week that Hulk Hogan was in town and the first cricket test match of the summer is at the Gabba on Thursday. Thankfully I was prepared, grabbed plenty of rooms but they still didn't last too long. Tomorrow (Wednesday the 25th) is the absolute worst of it and so many people have needed that one night. I ran completely out of rooms this afternoon so my fingers are crossed that there are some cancellations overnight and I can find availability in the morning.

Australian hotel market ... struggling

A couple of signs that show you how much the Australian hotel market is struggling right now.

1. Adelaide didn't fill for the Clipsal
Usually this is a can't miss event for Adelaide hotels. They can charge what they like for rooms, they can enforce a 4 night minimum stay and they usually fill with a few weeks to go. This year, with a week to go almost all of the hotels still had plenty of rooms so they dropped their rates and their minimum length stay requirements. But it was too late and the city didn't get close to filling.

2. Melbourne didn't fill for the Grand Prix
Again, this is usually a very good event for us and the Melbourne hotels. They charge full rack rates and have a 3 night minimum stay. Some of the hotels filled this year but in the lead up to the Grand Prix you could've got a one night stay on the Saturday night (usually the biggest/most popular night) for less than $200 at a 4.5 star property.

3. Canberra didn't fill for Budget
This was probably the most surprising. Canberra has a lot less 4, 4.5 and 5 star hotels than most of the other cities and usually fills at the drop of a hat when Parliament is in session or there is any sort of event happening. Budget is usually the busiest night of the year for Canberra hotels yet this year most of the 4 star hotels and above didn't fill.

Its clear that hotels aren't making adjustments to the current state of the economy. Companies are being a lot stricter with their corporate travel and aren't willing to pay the exorbitant prices that hotels have demanded in the past. Adelaide and Canberra not filling for their biggest events is evidence of that. The motels and the cheaper hotels that don't add massive event surcharges are still filling, its the top end of town that isn't and needs to make adjustments accordingly.

The next big event on the calendar is the State of Origin. I hope the hotels don't expect to get the rates they have been able to in previous years and start to price their hotel rooms more realistically. Looking at what's currently being asked, I'm afraid they will realise this way too late again ...