Book a ticket to Australia now and it will cost £200 less than it did at this time last year as airlines try desperately to fill seats during the economic downturn.

A slump in demand has led to frequent releases of deals, with prices dropping to £399 on Singapore Airlines to Perth last month. Those deals were snapped up in a couple of days and now the best fare is £599 to Sydney on Malaysian Airlines, according to Trailfinders.

But this compares with £779 for the same route last year. A spokeswoman said: “Tactical promotions are being offered by different airlines every two or three weeks. It’s worth keeping an eye out for deals.”

With air passenger duty increasing from £40 to £55 in economy class to Australia in November, and to £85 in November next year, it looks as though now is the time to head Down Under, stopping over along the way to break the journey. Below, we list the best places to break the flight.

Singapore

Hip and happening:

Shangri-La Posh and Becks, Nelson Mandela and George Bush father and son have stayed at the Shangri-La. It is easy to understand why. Just north of the western end of Orchard Road, Singapore’s main shopping street, the Shangri-La is at the top of a small hill with three main buildings set around a tropical garden with a 20m pool and a cute three-hole pitch-and-putt course. There is a selection of restaurants and a health centre with massages. The tranquillity of the garden by the pool is what really makes the hotel. Details 00 65 6737 3644, www.shangri-la.com. From £148.

New Majestic A laid-back art hotel in Chinatown with an Austin Powers-style white lobby, elaborate lamps and expensive-looking modern sculptures. Each of the 30 rooms is individually designed by artists. The “Aqua double” room has a large bathtub in an aquarium-like glassed-off box next to a large double bed with a pink bra embroidered on the bedspread. There is a bijou pool with three windows set into its bottom that give you a view of the Chinese restaurant below. The popular bar is a magnet for Singaporean trendies. Details 00 65 6511 4700, www.newmajestichotel.com. From £100.

On the cheap

Hangout@Mount Emily Next to the President’s residence on a hill — the “Mount” — is a hotel/hostel with 58 rooms and six dorms. Beds in the dorm are from about £14. The rooms are nothing to write home about — basic, clean, with few decorations, and rather dull — and are from about £30. But Hangout is well located, a short walk to Orchard Road’s shops and the city centre. There is also a rooftop terrace with sun loungers and a “shower pool” (a corner with a splash pool with showers) for cooling off, free wireless connections and a laundry room. Good for young and old on a budget. It is in a peaceful area and offers good value. Details 00 65 6438 5588, www.hangouthotels.com. Rooms from £30.

Hong Kong

Hip and happening:

Jia Boutique Hotel Designed by Philippe Starck amid the bustle of Causeway Bay, this is the choice of the fashion set. The minimalist decor is scattered with objets d’art; guests have access to a private members’ bar (and there is complimentary wine for guests at “cocktail hour” in the lobby); free broadband internet and a “California Fitness” gym are also available. Details 00 852 3196 9000, www.jiahongkong.com. From £87.

On the cheap

Harbour View International House It’s worth checking websites such as www.hotels.com, www.expedia.co.uk and www.lastminute.com for bargains – but Harbour View International, a YMCA-owned property, is consistently good value, with rooms from £95 (promotions can be as low as £65). Rooms are basic but many have excellent views of Victoria Harbour. It is in a good, central location in the Wanchai business district, close to the botanical gardens. Details 00 852 2802 0111, www.harbour.ymca.org.hk. From £65.

Dubai

Hip and happening:

Grosvenor House The Buddha Bar at Grosvenor House has a great adjoining sushi restaurant and is one of the busiest and most popular drinking holes in Dubai. The hotel, next to Dubai Marina, is five-star with marble finishings and swish furnishings; the style is polished and modern. There are good Indian and French restaurants, a pool and a fitness centre. The small cocktail bar on the 44th floor is a favourite with the Dubai in-crowd. Details 00 971 4399 8888, www.grosvenorhouse-dubai.com. From £113.

On the cheap:

Barracuda Beach Resort For the less expensive, the Barracuda Beach Resort is worth a shot. The hotel is basic and the decor is a bit garish, but there is a pool and the hotel is on the beach. This is popular with locals — many stay at weekends as a break from living in centrally located apartments. There are regular beach barbecues and a lively bar. Details 00 971 6768 1555, www.barracuda.ae. From £100.

Los Angeles

Hip and happening:

The Standard There are two Standard hotels in Los Angeles, one central and one in Hollywood — and both are a far cry from the name. Rooms are brightly decorated in an upbeat style. Modern art adds to the avant-garde feel. The Hollywood Standard, which counts Leonardo DiCaprio and Cameron Diaz among its investors, is a couple of hundred yards from Chateau Marmont — and is run by the same hotel group. Posing by the pool is expected. Details 00 1 323 650 9090, www.standardhotel.com. From £103.

On the cheap:

Banana Bungalow This is a lively hostel in Hollywood with rooms from about £40 a night or places in dorms from about £15. Rooms are brightly coloured, with lots of lime greens and reds, and have 1960s-style bedcovers. There is a pool room, a basketball net, a sunbathing terrace, a “movie lounge”, and a free internet room. The owners organise pub crawls and poker nights. And it’s a short walk to the Chinese Theatre on Hollywood Boulevard. Details 00 1 877 977 5077, www.bananabungalow.com. From £40.

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