Exploring Adelaide's Hotel Occupancy Future Trends: September to December 2023

Last updated 12 Feb, 2024

Adelaide’s vibrant culture and bustling events calendar have a significant influence on the bottom line of hotels. Check out what’s currently impacting Adelaide’s forward hotel occupancy rates over a 90-day period during September to December 2023 (in comparison to the same time last year). These insights are derived from the 4 September 2023 ‘Forward STAR: Occupancy on the Books’.

The Royal Adelaide Show

6 September emerges as the star day across this period of the forward bookings calendar. Why? It falls right in the middle of the Royal Adelaide Show, taking place from 2 - 10 September. Not surprisingly, this period also boasts the highest average occupancy rates, as regional families flock to the city to participate in or simply enjoy the festivities. This annual event continues to be a major driver of hotel bookings, with 2023's occupancy rates revealing an increase compared to the previous year.

Education and Sports: The Movers and Shakers

It's clear that business conferences play a pivotal role in boosting occupancy rates. Adelaide's hoteliers have another reason to smile with the Australian International Education Conference on the horizon. Expected to draw 1,200 attendees, this event scheduled for 10 October, promises an impressive 18% increase from the previous year's figures.

Cricket enthusiasts also contribute their fair share to the city's hotel bookings. Three cricket matches, including the Marsh Sheffield Shield and the Marsh One Day events, are slated for November. Notably, these matches have a ripple effect on October's occupancy rates as eager sports fans book their stays closer to the event dates.

The Impact of Major Events

The data report shows the downturns in hotel occupancy attributable to the ICC T20 World Cup Cricket England vs. India and the 2022 World Indigenous Peoples Conference on Education. These events inflated last year's forward bookings, causing a temporary dip in this year's occupancy rates. While big events can boost bookings, they can also skew booking patterns.

7-Day Occupancy

The data reveals a pattern when it comes to booking behaviour. While the 30-day and 90-day occupancy averages may suggest a slowdown, the 7-day occupancy indicates a consistent pattern of consumers increasingly opting for last-minute bookings.

However, the average pickup rates indicate that bookings made in the first 30 days were three times higher than other timeframes and twice the average pickup rate.

The takeaway here is that while the 7-day occupancy rates may seem on par with 2022 levels, there might not be a real slowdown in occupancy. Instead, it could be attributed to consumers hesitating to make significant expenditures due to economic uncertainties. It's a reminder for hotels to be adaptable and offer flexible booking options to cater to this changing consumer behaviour.

Riverbank Precinct - Ben Goode

Interested in more information like this? The Adelaide Economic Development Agency (AEDA) regularly publishes industry updates and economic reports to inform investment decisions and help you understand the latest on the city economy, population, tourism and property markets.

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Images: Quest King William South and Ben Goode