SiteMinder Detail NZ Market Growth

SiteMinder

SiteMinder has dissected New Zealand's hotel market, focused on guest trends, costs and contributing factors to the market's growth.

A new report from SiteMinder highlights the growing confidence in travel, with New Zealand’s hotel sector reporting the longest booking lead time in the Asia-Pacific region at 43.07 days. This booking window is just 4.93 days shorter than the global leader, Ireland, and exceeds the global average by over 11 days.

The report, SiteMinder’s Hotel Booking Trends, which is based on more than 125 million hotel reservations – the largest volume of any single technology platform – underscores the evolving landscape of hotel bookings in New Zealand. The data suggested that the extended booking lead time signals a shift toward more deliberate, long-term planning by travellers. This trend also aligns with a broader global shift toward booking further in advance, reflecting increasing confidence in future travel.

Further insights from the report reveal that New Zealand hotels are seeing growing revenue from direct bookings. Hotel websites ranked as one of the top sources of bookings in New Zealand, with an average value per booking of US $519, significantly higher than that via OTAs (US $320) and global distribution systems (US $380). The increase in direct bookings reinforces the importance of direct connections between hotels and their guests, highlighting the strong potential for New Zealand hotels to build customer loyalty and drive future revenue growth.

The year-on-year rise in direct booking value saw hotel websites in New Zealand maintain their position for the third consecutive year among Australia’s top sources of total revenue. Hotel websites ranked as the third-highest driver of total revenue in New Zealand, Australia and most countries across Asia-Pacific including Taiwan, the Philippines and Thailand.

“New Zealand hotels are benefiting from both growing traveller confidence and an increasing preference for direct bookings,” said Bradley Haines, Regional Vice President of Asia Pacific at SiteMinder.

“This shift reflects broader trends in the Asia Pacific region, with more guests seeking value, flexibility and personalised experiences that hotel websites are best positioned to deliver. The continued rise in direct bookings will help strengthen New Zealand’s position in the regional tourism market.”

The annual SiteMinder Hotel Booking Trends report is the authority on hotel bookings across 20 of the world’s most established destinations. It is based on the booking data of SiteMinder’s more than 44,500 hotel customers, who in 2024 used SiteMinder’s platform to secure more than 125 million bookings valued at more than US $50 billion in revenue.

The resurgence of international travel was fuelled by the accelerating return of Asian hotel guests. China’s Trip.com jumped up one spot to seventh place on New Zealand’s Top 12 sources of hotel bookings.

On average, hotel room rates in New Zealand saw a modest year-on-year increase from US $175.94 to US $176.60, aligning closely with global trends where room rates rose in 65 percent of markets. Friday was found to be the most expensive night in 85 percent of countries, including New Zealand, where the average rate reached US $290.16. In contrast, Sunday emerged as the most affordable night in 65 percent of markets, including New Zealand, where hotel rates averaged US $254.41.

In New Zealand, 86 percent of hotel bookings were for one-night stays, with just six percent of bookings extending three nights or more. This trend mirrors the global pattern, where 78 percent of hotel stays were for one night, and 11 percent lasted three nights or more. In Asia Pacific, Taiwan recorded the shortest stays, while Thailand saw the longest stays beyond seven days. Globally, Portugal had the longest average stays overall.

New Zealand's cancellation rate remains lower than the global average at 17.88 percent, a consistent decrease since 2020, when it stood at 25 percent, reflecting growing confidence in travel among New Zealanders. In the Asia-Pacific region, Indonesia recorded the lowest cancellation rate at 12 percent.

Hotels in New Zealand are heavily impacted by seasonality compared to global markets. January to March saw the highest volume of bookings, driven by the warmer months, while June, August and September represented the quietest months, reflecting the typical winter lull.

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