The sentiment across Asia-Pacific hoteliers seems to be turning downward, but hotel performance data isn't following that trend quite yet, according to STR's Jesper Palmqvist.
Speaking on the latest episode of the Hotel News Now podcast, Palmqvist said there is traditionally a lag between a drop in sentiment and a drop in performance data, but that lag time is shrinking.
"It's kind of like the booking window," he said. "I think it used to be a bit longer, but now it's shorter."
The weaker-than-expected performance in China around the Golden Week and Labour Day holidays is a big part of that sentiment shift, which is unwelcome news for the many international destinations still awaiting the return of outbound Chinese travelers.
"The numbers there weren't extraordinary," Palmqvist said. "You get some but not all. And then domestically, it was a disappointment when you compare it to the last year."
Hotel rates in mainland China are 10% to 20% lower than the same period last year, which was shortly after the country fully reopened, he said.
But a positive aspect for travel in China is the country continues to open up in ways it hasn't historically, with more travelers able to come visa-free for longer periods, and currency exchange making it more affordable at the moment.
"The balance of inbound and outbound from Greater China will be interesting to track," he said. "The first quarter had 13 million inbound travelers, and that's kind of a celebration in a way. That's a good number."
Other topics discussed on the podcast include:
- A tourism uptick in Singapore. (11:38)
- Airlift trends across the region. (14:37)
- How geopolitics are affecting travel. (17:15)
- Australia's broad recovery and back-to-office trends. (20:33)
For more from HNN's conversation with Jesper Palmqvist, listen to the podcast above and subscribe to the Hotel News Now podcast on Apple, Spotify or wherever you find podcasts.
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