Australia Travel Accommodation Market Report and Forecast 2025-2034

According to this report, the Australia travel accommodation market size witnessed a healthy growth in 2024. Aided by the rising demand for eco-friendly stays and the growth of digital nomad-friendly properties, the market is projected to grow at a CAGR of 5.80% between 2025 and 2034.

The Australia travel accommodation market growth is being driven by increasing domestic and international tourism, changing consumer preferences, and expanding travel-related infrastructure. Travel accommodation includes a wide variety of options, ranging from luxury hotels and serviced apartments to hostels, motels, and short-term rentals. The market caters to a diverse group of travellers, including leisure tourists, business travellers, backpackers, and long-term visitors. As Australia continues to position itself as a key global travel destination, investments in accommodation infrastructure and digital booking platforms are supporting market expansion while enhancing customer experiences across segments.

The growth in international arrivals, particularly from the neighbouring Asia Pacific countries, is aiding the Australia travel accommodation market expansion. Tourists from China, New Zealand, India, and Southeast Asia form a large proportion of inbound visitors who seek comfortable, centrally located, and culturally suitable lodging options. Additionally, the rise in working holidays, educational travel, and medical tourism is adding to the demand for long-term and specialised accommodation types. Domestic tourism has also seen a resurgence in recent years, driven by local travel campaigns, remote working trends, and an increasing appreciation for regional destinations, thereby strengthening occupancy rates across both urban and regional markets.

As per the Australia travel accommodation market analysis, consumer expectations are evolving rapidly, influencing the way travel accommodation providers operate and compete. Travellers today demand greater flexibility, convenience, and personalisation in their accommodation experiences. Technology is playing a key role in shaping the market, with online travel agencies, booking apps, and price comparison platforms giving consumers more control and information. Smart room features, digital check-ins, contactless services, and real-time customer support are becoming standard in many establishments, especially in urban and upscale hotels. These innovations are helping operators differentiate themselves and build customer loyalty in a competitive landscape.

Sustainability and eco-consciousness are revolutionising qthe Australia travel accommodation market landscape. Guests are showing a growing preference for environmentally responsible stays, prompting many hotels and resorts to adopt sustainable practices. These include energy-efficient systems, waste reduction programs, eco-friendly toiletries, and partnerships with local suppliers. Certifications such as Green Star and EarthCheck are gaining recognition and becoming a benchmark for environmentally conscious operations. The demand for sustainable travel accommodation is also encouraging new construction projects to prioritise green building standards and resource efficiency from the design stage.

In the Australia travel accommodation market, short-term rentals and peer-to-peer accommodation platforms have transformed the traditional accommodation model, offering unique, local, and cost-effective alternatives to hotels. Platforms like Airbnb and Stayz have seen widespread adoption, especially among younger travellers, families, and digital nomads seeking home-like environments or extended stays. These platforms allow property owners to monetise unused spaces while giving travellers access to diverse lodging options. In response, traditional operators are innovating their service offerings, introducing boutique concepts, extended-stay packages, and hybrid models that blend the comfort of home with hotel-style amenities and service quality.

Business travel continues to boost the Australia travel accommodation market revenue, especially in major metropolitan areas such as Sydney, Melbourne, Brisbane, and Perth. Corporate travellers seek convenience, access to business centres, and premium services such as meeting facilities, high-speed internet, and efficient transport links. With the rise of remote and hybrid working, there is also growing interest in “workcation” offerings that combine leisure travel with business productivity. Hotels and serviced apartments are adapting by providing coworking spaces, long-stay discounts, and flexible booking terms that cater to the changing needs of business clients.

The Australia travel accommodation market dynamics is also shaped by significant investments in infrastructure development, particularly around airports, tourist attractions, and emerging regional destinations. Government initiatives to promote regional tourism and improve connectivity are encouraging the construction of new hotels and resorts in areas previously underserved by large-scale accommodation facilities. Events such as international sports tournaments, cultural festivals, and conferences are further boosting demand for temporary and permanent lodging solutions. Public-private partnerships and tourism promotion programmes are playing a crucial role in attracting investment and ensuring that accommodation supply keeps pace with rising demand.

Challenges in the Australia travel accommodation market include seasonal fluctuations, high operational costs, and regulatory issues affecting short-term rentals and property use. Operators face pressure to maintain competitive pricing while ensuring service quality and compliance with health, safety, and zoning regulations. Workforce shortages, especially in hospitality roles, can affect service delivery and customer satisfaction. To address these challenges, accommodation providers are focusing on staff training, digital integration, and strategic partnerships that enhance value propositions and operational resilience.

Looking ahead, the Australia travel accommodation market is expected to continue its upward trajectory, supported by robust tourism activity, digital innovation, and evolving consumer behaviours. The sector’s adaptability and focus on guest experience, sustainability, and diversification will be key to sustaining growth in a dynamic and competitive environment. As more travellers explore the unique offerings of Australia, the market is well-positioned to provide high-quality, memorable, and flexible lodging experiences that meet the needs of a broad and diverse customer base.

Market Segmentation

The market can be divided based on type, mode of booking, price point, application, and region.

Market Breakup by Type

• Hotels
• Resorts
• Hostel
• Vacation rental
• Others

Market Breakup by Mode of Booking

• Travel Agency
• Direct Booking

Market Breakup by Price Point

• Economy
• Mid-Range
• Luxury

Market Breakup by Application

• Leisure
• Professional

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Australia travel accommodation market.

Some of the major players explored in the report are as follows:

• Accor SA
• Choice Hotels International, Inc.
• Airbnb, Inc.
• Expedia, Inc.
• Rydges Hotels Limited
• Quest Serviced Apartments Pty Ltd.
• Luxury Lodges of Australia Ltd.
• Mayfair Hotel
• Others