The Australian accommodation industry is off to a roaring start in 2025, recording a promising surge in occupancy rates for the January school holidays. This comes as a refreshing boost amidst ongoing cost-of-living challenges.
According to Accommodation Australia, the nation’s leading accommodation body, occupancy levels have climbed significantly in key capital cities compared to the same period last year. CEO James Goodwin revealed that the sector is thriving despite tightened family budgets and international tourism still lagging at 88% of pre-pandemic levels.
“January is shaping up to be a positive month, building on a robust December holiday period,” said Goodwin. “Occupancy rates across most capitals are outperforming last year, with Sydney up 2%, Melbourne 3%, Brisbane 4%, and Hobart leading the charge with an impressive 18% increase.”
Unlike February 2024’s surge driven by global concerts such as Taylor Swift’s sold-out performances, these gains are not tied to singular events. Instead, they reflect broad-based consumer demand for holiday experiences.
“This growth demonstrates that Australians are prioritizing travel and leisure, choosing to explore new destinations despite financial pressures,” Goodwin added.
Forward Momentum Across Capitals
Occupancy data from STR Global highlights encouraging trends for December and January:
- Hobart: December occupancy surged 20%, with January projections up 18%.
- Brisbane: Consistent increases of 2% in December and 4% in January.
- Sydney: A steady 2% rise for both months.
- Melbourne: A dip in December (-1%) was offset by a 3% January rise.
- Darwin & Canberra: Both forecast 3% January growth.
Even Perth, typically less dynamic during the summer holidays, maintained steady levels.
Outlook for 2025
Looking ahead, Mr. Goodwin expressed optimism for the sector, predicting that the positive trajectory would carry over into the next three months. “Occupancy on the books for February through April already exceeds last year’s levels, suggesting we’re on track to surpass 2024’s performance.”
The sector showcases resilience and adaptability, with year-to-date occupancy up 1.8% (71.4%). Despite the slow return of international tourists, Australians’ enthusiasm for domestic travel underscores the industry’s strength.
As 2025 unfolds, the accommodation sector remains poised to defy economic challenges, providing exceptional hospitality and contributing significantly to the nation’s economic recovery.
Written by: My Thanh Pham