As the cost-of-living crisis continues to bite, Aussies are spending less on holiday accommodation.
Over the past year, demand for Airbnb and short-term rental (STR) accommodation has remained strong, but average prices have declined from 2023 rates.
Seiko Ma, managing director of Bodhi Tree Group, stated that the cost-of-living crisis is likely causing Australian holiday-makers to turn to cheaper accommodation options.
“This increase in occupancy indicates a steady demand for short-term holiday rentals and Airbnb properties. With the cost of living, families are still keen to take a holiday but less likely to select more expensive options like hotels,” she said.
According to a report from Beyond Pricing, the average daily rate (ADR) for 2024 was $311 – a decrease from the 2023 ADR of $351.
Ma speculated that Airbnb operators may be lowering prices to remain competitive, stating: “While there is demand for their property, they had had to accept that their income may be lower due to the market.”
“It would appear STR owners have been affected by the current economy,” she said.
Keiran Craig-Jones, executive director of the Short Term Accommodation Association Australia (STAAA), stated that the decline in daily rates follows several months of additional difficulties.“In additional to regulatory pressures, property owners in the short-term rental accommodation industry are already facing significant challenges due to increased land taxes, council rates, mortgage rates and rising living expenses.”
“These factors are making it increasingly difficult for many owners to keep their heads above water,” Craig-Jones said.
She expressed criticism for recent legislative changes, stating that the STAAA “strongly opposes any form of discriminatory taxes or levies by state governments that unfairly target the short-term rental accommodation industry, as they undermine the principles of equity and economic freedom”.
“We believe in fair and equitable treatment for all industries, ensuring that our members can continue to operate without unjust financial burdens,” Craig-Jones concluded.
