Australia leads world in domestic hotel bookings trend

A report from SiteMinder has disclosed that Australia is leading the world in domestic hotel bookings, with 86% of such bookings in 2024 being made by Australians.

The findings from SiteMinder's "Hotel Booking Trends" report reveal that Australia is ahead of other nations, including the United States, where domestic bookings accounted for 75% in the comparable period. The study encompasses over 125 million reservations from SiteMinder's platform, highlighting significant trends in both domestic and international travel.

Direct bookings through hotel websites have emerged as one of the top three preferred booking methods for Australians. In the past year, the average booking value via hotel websites in Australia increased to AUD $778, showing an 8.5% rise from the previous year. This amount is over 60% higher than bookings through online travel agencies, which average AUD $480, and considerably surpasses other channels such as global distribution systems and wholesalers.

Hotel websites maintained their position as a substantial contributor to total revenue for the third consecutive year, ranking third in Australia, New Zealand, and many Asia-Pacific countries, including Taiwan, the Philippines, and Thailand.

"Travellers are seeking greater value, flexibility, and personalised experiences, things that hotel websites are uniquely positioned to deliver," said Bradley Haines, Regional Vice President of Asia Pacific at SiteMinder. "The rise in direct bookings highlights the increasing importance of direct connections between hotels and guests, a shift that will continue to drive revenue, build customer loyalty, and strengthen the resilience of the local and regional tourism markets in the years ahead."

Despite the resurgence of international travel, particularly with the return of Asian tourists, domestic travel remains dominant. The report noted that China's Trip.com has now appeared in the list of Australia's Top 12 sources of hotel bookings based on revenue.

Room rates in Australia experienced a slight rise from AUD $297 to AUD $299 on average. Fridays have been identified as the most expensive nights, with rates reaching AUD $354, whereas Sundays are more affordable with an average of AUD $272.

In alignment with global patterns, most hotel stays in Australia in 2024 were for a single night, comprising 80% of bookings. Longer stays, extending beyond three nights, only accounted for 10% of the total. This mirrors the global trend, where one-night stays made up 78% of bookings.

A notable trend is the increasing lead time for bookings made by Australians, now averaging 32.04 days, compared to the global average of 31.98 days. Australia's cancellation rate remains relatively low at 17%, contrasting with Indonesia's regional low of 12%.

Seasonality has a lesser impact on Australian hotel bookings compared to global counterparts. During the year, bookings peaked in November and December, attributed to peak summer travel, whereas May and June saw reduced activity.

For 2024, the top sources of hotel bookings in Australia, based on revenue, include Booking.com, Expedia Group, direct hotel website bookings, and other significant contributors such as Qantas Hotels and Airbnb.

Bradley Haines concluded, "As we continue to see Australians lead the world in domestic travel, it's clear that the preferences of local travellers are shaping the future of the industry. The rise in direct bookings reflects a broader shift towards valuing personalisation, value, and a more seamless connection between hotels and their guests. As we look ahead, these trends will not only drive continued growth in local markets but also play a pivotal role in fostering customer loyalty and ensuring the long-term resilience of the global tourism ecosystem. With Australians setting the pace in how they book and travel, hotels across the region must continue to adapt and innovate to meet these evolving expectations."