Custom cold rooms have become increasingly expensive, with hoteliers facing increasing competition to offer customers rooms free of charge.
Custom cold rooms currently cost up to AU$1,300 per night, with some hotels charging up to US$1.30 per night.
The cost of a private room in one of Australia’s oldest hotels has jumped by AU$300 since 2014, according to the Australia Hotel Association.
While a single-room stay for four nights may be the cheapest option for some travellers, there is increasing competition from the private room market.
The private room industry is worth about AU$3.6 billion, according the Association of Private Rooms.
The Australian Government has proposed capping hotel room rates for private rooms at $250 per night for two people, and capping the minimum stay period at 20 nights.
“The new regulation will ensure that the private rooms sector is competitive in the market place, and also protect Australians from the potential harms associated with overcharging for private accommodation,” the Minister for Tourism, Tourism and Convention Affairs, Craig Emerson, said in a statement.
“It also builds on the Government’s existing commitments to invest in the private sector.”
Private rooms are available in all Australian hotels and motels, with private rooms costing about AUUS$400 per night to rent.
Customers at the Gold Coast’s Gold Coast Hotel and Harbourfront Hotel, which are among the most expensive hotels in Australia, were offered a one-off offer to stay in private rooms in December, with a rate of AU$650 per night per person.
However, the price of a room has risen significantly since then, with one guest reporting that the room costed $1,700.
The Gold Coast Resort has previously increased room rates in recent years, with rooms now costing between AU$450 and AU$600 per night in some areas.
Custom room rates also rose by AUUS10 per cent last year, according in a report released by the Gold-crest Hotel Association earlier this year.
The Victorian Government has also proposed caering private rooms, with the Government providing a cap of AUUS300 per person for private room rentals.
A number of states, including Queensland, New South Wales, Victoria, and South Australia, have already introduced caering rooms, and have increased the number of nights a person can stay in a private hotel, from two to three.
However there are concerns that caering may increase the cost of private rooms for some customers, as the cost may not be reflected in the rate, or hoteliers are unwilling to change their policies to make room rates affordable.
The Government has said that caers would only apply to new private rooms and hotels, and that the changes would not apply to existing private rooms.
Topics:business-economics-and-finance,tourism,travel-and_tourisms,hong-kong,australiaContact Emily Wollaston