As lockdowns end, hotel bookings surge in Australia’s Gold Coast

Over recent months, Australia has experienced a number of lockdowns and travel restrictions which have resulted in record low levels of hotel demand. However, as the country enters the summer months and restrictions ease, positive trends are already developing for hoteliers. And while an uplift in demand can be observed across many of Australia’s key markets, it is the Gold Coast that is leading charge in forward bookings.

Using data from STR’s Forward STAR, this analysis highlights the uptake in occupancy on the books experienced within the region, the predicted success of the Christmas and New Year’s period, and a comparison against other key Australian markets.

Summer is here

With summer beginning in the Southern hemisphere, it is welcome news to many within Australia that restrictions have eased. In previous months, hotel demand for the Gold Coast, a popular destination with tourists, has been significantly lower than pre-pandemic levels. This can be observed through a comparison of historical data between 2019 and 2021. Last summer, specifically in January, Gold Coast hotel occupancy was 21% lower the 2019 comparable. Between March and June, southern states were able to access Queensland, hence, recovery toward 2019 levels was stronger than other months. With the Delta variant outbreak in the southern states, and Queensland once again closed to those states, another large decline began in July.

More recently, with the relaxation of restrictions, forward demand is once again trending upward. Throughout the first half of January 2022, levels are already sitting above 60% with levels likely to increase as we move closer to the new year.

New Year’s Celebrations Bring Guests Back

Entering the time for holiday festivities, we begin to see occupancy on the books increase even more. Bookings peak on 31 December as visitors flood to the coast to celebrate the brining in of a new year. As Queensland opened its border to southern states on 13 December, there is more confidence around access for source markets.

Booking levels obviously tail off after the holiday, which is partly due to continued uncertainty and subsequent hesitation of guests to book too far in advance. At the same time, a majority of business is still leisure-driven, and the next key holiday period in April shows healthy levels.

How does Gold Coast compare with other Australian markets?

Australia’s national forward demand paints an improving picture for the next 90- and 365-day periods. Despite positive trends for other markets, however, it is the Gold Coast that continues to lead the way. This aligns with the findings from a recent STR research piece which highlights that the second-most desired getaway for travelers at the moment is that of a costal break.

An important observation from this chart is that across the festive period it is in fact Queensland North that is achieving the highest levels of occupancy. However, its neighbours to the south lead occupancy on the books from then on out. The reason for this is size of market and seasonality. While it is peak season for the Gold Coast, it is low season for Queensland North, outside of a short Christmas/New Year’s window.

Conclusion

As 2021 ends, there is a sense optimism for many Australian markets. With the easing of restrictions, people are once again beginning to explore other areas of the country. It can also be presumed that as borders begin to open for more foreign travelers, hotels will start to once again see a significant uptake in bookings.

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