2025 Takes flight: Accommodation sector starts the year strong

Australia’s accommodation sector is defying the weight of cost-of-living challenges, with solid bookings setting the stage for a vibrant January school holiday period. According to figures released by Accommodation Australia, the industry is soaring, with occupancy levels across most capitals outpacing last year’s performance.

CEO of Accommodation Australia James Goodwin said January was looking “positive”, on the back of a solid December Christmas period – with occupancy levels across most capitals better than this time last year.

“Heading into January Sydney is up two percent, Melbourne three percent, Brisbane four percent, Adelaide one percent and Hobart up 18 percent,” Mr Goodwin said.

“Importantly, this is broad-based demand not tied to specific events like an international concert extravaganza – like we saw with Taylor Swift in February 2024 and we hope this should continue through 2025.

“This is a particularly good result given international tourists are still at only 88 percent of pre-COVID levels and family budgets are obviously tight with cost-of-living pressures.

“Our accommodation sector really is second to none and we see people prioritising a holiday and keen to get out and experience new things this holiday period.

“Overall, we have also seen a strong finish to 2024, with YTD occupancy at 71.4% (up 1.8%).”

Forward Bookings – December / January (Source: STR Global):

Mr Goodwin said looking ahead occupancy on the books for the next three months was “promising” with occupancy levels exceeding the same period last year.

“This positive trajectory suggests occupancy will surpass 2024 performance,” he said.