The report found that 75% of accommodation providers around the country expect positive business development in the coming six months, with those in Victoria reporting the highest sentiment (68%) of any state.
It is a significant improvement on the lowest point of 61% in 2022, and the strong outlook has inspired 48% of accommodations to plan for increased investment in the coming months.
Event-driven travel is reinforcing positive results across the sector, with 46% of Australian accommodations seeing a rise in bookings during typically low-demand periods.
Fifty-two percent said they plan to actively partner with event organisers and 44% intend to coordinate with local government and destination marketing groups.
The report does, however, emphasise major challenges still faced by the sector, including staffing woes, with 47% of accommodations citing a lack of skills or experience as a significant barrier to recruiting.
Additionally, while many in the sector recognise the potential benefits of AI, around a third (34%) cite high implementation costs as a barrier to adopting the technology, along with integration complexity (40%).
The report coincides with the release of Accommodation Australia’s occupancy figures for 2025, which reflect an improved performance overall.
Perth saw the strongest result, followed by Sydney, Hobart and Adelaide, while the Gold Coast and Brisbane experienced slight drops (2.8% and 0.6% respectively), attributed to the cyclone in Mar.
“The end of year report card shows strong figures across most capital cities – scoring a solid A-,” AA CEO James Goodwin said.
