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As the cost-of-living crisis continues to bite, Aussies are spending less on holiday accommodation.

By in Blogs

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.

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Jaz Hoy

Jaz Hoy launched Jaz Realty in November 2012 after having gained her experience of the sunshine coast market during the economic downturn. Never once did Jaz sit on her laurels and allow the negativity get in her way. She sold many properties throughout the ‘difficult’ market and bravely established her own business even before things started to improve. Today, Jaz is enjoying her reputation in the current market and enthusiastically maintains the momentum she has achieved throughout the years she has been engaged in real estate. Quite simply, she LOVES what she does and delights in helping people. Jaz understands the importance of listening to, and respecting, a client’s expectations and needs. Her friendly, courteous and honest nature, coupled with her energy and reliability, will ensure you utmost satisfaction, when engaging her in the marketing and selling of your number one asset. Jaz also speaks and writes fluent German.