How 2025 could reshape Australia’s leadership in domestic travel

By Bradley Haines, Regional Vice President for Asia Pacific, SiteMinder

Australia’s sustained leadership in domestic travel is prompting a critical shift in how the hospitality industry should plan for its future.

On the one hand, 86 percent of hotel bookings in Australia in 2024 came from local travellers, outpacing even the United States. On the other, there are growing signals that the international traveller market—especially from Asia—is making a significant return.

It’s clear that Australian hotels are facing a significant turning point, especially as they think about meeting guest expectations and their revenue goals this year.

This means recalibrating their strategies, starting with considering the demands and behaviours of both local and international travellers.

Read the latest AccomNews print edition HERE

Be conscious of the ‘conscious Australian traveller’

Gone are the days when a hotel served simply as a clean place to wash up and sleep.

Many Aussies today are conscious travellers, looking for accommodation that adds to their holiday experience while emphasising environmental sustainability.

And, amid rising costs of living, many of these conscious travellers, as highlighted in SiteMinder’s Changing Traveller Report 2025 – the world’s largest accommodation survey – are choosing to stay put at their accommodation.

In fact, almost half of Australian travellers expect to spend “most of the time” or “considerable time” at their hotel in 2025, a 6 percent increase year-on-year.

Despite a more adventurous reputation, younger generations lead this trend, with Gen Z (18–27) and Millennials (28–43) planning to spend more time at their accommodation than Gen X (44–59), Baby Boomers (60–78) or Radio Babies (79–96). 

This is great news for accommodation providers, as Gen Z (53 percent) and Millennials (52 percent) intend to splurge extra on their next trip compared to last year than Gen X (28 percent) or Baby Boomers (23 percent), with the majority of the latter two age groups planning to spend the same amount or less on their stay than last year.

Most Australian travellers also prioritise the planet through their accommodation choices. Whether it be a hostel or resort, more than one out of four say they are willing to pay up to 10 percent more for environmentally-friendly accommodation.

So, while budget concerns exist, conscious travellers are willing to spend money on what they personally value.

Expect more Aussies to book directly, but don’t ignore the international traveller at your doorstep

With Australians increasingly prioritising meaningful experiences, direct bookings through hotel websites stayed strong in 2024 as more travellers sought pricing and packages that catered to their individual needs.

Indeed, SiteMinder’s Hotel Booking Trends shows hotel websites ranked as the third highest revenue-generating channel in Australia for the third straight year. Additionally, hotel websites generated an average of AU$778 per booking, an 8.5 percent increase from the previous year. The value was more than 60 percent above the value-per-booking via OTAs (AU$480); more than 35 percent above global distribution systems (AU$570); and more than 15 percent above wholesalers, DMCs and tour operators combined (AU$668).

However, the advantages of direct bookings extend, of course, beyond higher value per booking.

What we’re witnessing in Australia is not simply a growing preference for booking directly—it’s a broader movement towards personalisation, flexibility and transparency.

Hotels that invest in their direct booking strategy to meet these demands are well-positioned to not only unlock higher revenues but also build deeper, more meaningful relationships with their guests. Ultimately, this means greater customer loyalty.

All of this said, take note: the international traveller market is making a return. Among travellers globally, 11.2 percent list Australia as one of the destinations they intend to visit this year, making it the world’s fourth hottest destination, behind Japan, the United States and France.

Excitingly, it ranks as the top destination among Chinese travellers.

Say hello once again to the Chinese traveller

The return of Chinese travellers is a big opportunity for hoteliers, as they have long been a vital source of revenue for Australia’s hospitality sector. We see their return in Trip.com’s ranking among Australia’s Top 12 hotel booking sources for the first time, driven by a near 100 percent year-on-year increase in Chinese arrivals to the country.

Unlike the more budget-conscious Australian, the Chinese traveller is more willing to spend on every facet of their trip.

While Australians have reaffirmed their love of the great outdoors by being the most open globally to booking holiday parks and camping sites (11 percent), thirty-eight percent of Chinese travellers will stay at a big chain or resort, and 35 percent will stay at a boutique or luxury hotel. This is no surprise given that, for a third of Chinese travellers, price increases will have no impact on their choice of accommodation.

And, forget about the standard room. At least four-in-ten will book a superior room, while three-in-ten will book a deluxe room.

The resurgence of international travel, particularly from Chinese tourists and other key Asian markets, presents Australian hotels with renewed opportunities and now’s not the time to be complacent.

Hoteliers must be ready to welcome and engage these international guests as they re-enter the market.

Will we see Australia continue to lead the world in domestic travel? Only time will tell, but all signs point to a more dynamic landscape than we’ve seen in recent years.

Local accommodation providers would be wise to rethink their marketing and distribution strategies, and invest now in technologies that not only drive optimal revenue outcomes, but prepare them for any changes within the market, as they happen.