AUSTRALIA | Cost-of-living pressures have changed how Australians travel.
Recent industry data shared by Accommodation Australia showed the average holiday has shortened from around two weeks to five to seven days, while Expedia has recorded a ten percent increase in Australians using its all-inclusive search filter.
CLLIX Apartments & Hotels Chief Commercial Officer Shankar Kotha said the shift offered the accommodation sector an opportunity to rethink how it communicated value to increasingly cost-conscious travellers.
“Price will always be an important driver, but travellers are becoming more sophisticated about what represents genuine value. The cheapest nightly rate isn't necessarily the cheapest stay,” said Kotha.
“Guests are increasingly looking at what happens after they check in: whether parking is included, whether they can prepare a meal, wash clothes, accommodate a family comfortably, or avoid paying for services they don't need. The conversation is moving from room rate to total-stay value.”
Travel search site Skyscanner estimated that parking at Australian CBD hotels can cost between AUD 25 and AUD 70 per night, highlighting how quickly additional expenses can alter the true cost of a booking.
In Brisbane, current published rates at comparable hotels in and around the CBD and South Bank range from AUD 50 to AUD 65 per night, adding AUD 150 to AUD 195 to the cost of a three-night stay.
By comparison, guests booking direct at Ivy & Eve Apartments by CLLIX in South Brisbane receive one complimentary car space, subject to availability and booking conditions. The apartments also feature self-contained kitchen and laundry facilities, with rates currently starting from AUD 169 per night.
Kotha said apartment-style accommodation was well positioned as travellers sought to maintain holiday quality while becoming more selective about where they spent.
“This isn't necessarily about consumers trading down. They still want to eat at great restaurants, experience the destination and stay somewhere well located and comfortable. What we're seeing is a greater focus on whether every dollar they spend adds value to their trip,” said Kotha.
“A kitchen doesn't mean a guest won't dine out, but it gives them the choice not to buy every breakfast, snack and drink at hospitality prices. A laundry means a family or long-stay guest can book lighter airfares and pack differently. Complimentary parking can save AUD 150 or more on a three-night stay in Brisbane.”
Individually, these might seem like small inclusions, but Kotha said they can collectively change the value proposition.
He added that space was another often-overlooked factor in traditional room-rate comparisons, particularly for families, groups and longer-stay travellers and that a two-bedroom apartment shouldn't necessarily be compared with a standard hotel room.
“For a family or group requiring separate sleeping areas, the relevant comparison may be two hotel rooms versus one apartment with two bedrooms, a kitchen, laundry and a shared living space. That is where the traditional nightly-rate comparison starts to lose its meaning.”
CLLIX believed the trend also underscored the importance of direct bookings, which give accommodation providers greater scope to communicate inclusions and demonstrate value beyond price alone.
Depending on the property, CLLIX direct-booking benefits can include complimentary parking and Wi-Fi. At the same time, its apartment model provides guests with kitchen and laundry facilities, as well as additional living space.
Kotha highlighted that discounting isn't the only lever available to accommodation operators in a value-conscious market and that there was an opportunity to demonstrate value through useful inclusions, flexibility and a product that gives guests greater control over their spending once they arrive.
“Don't cut the experiences. Cut the expenses that don't enhance the experience.”
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