The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
25 DAYS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
25 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
4
print
Print
HotelDinah Lewis BoucherWed 23 Oct 19

Millennials the Big Spenders on Australian Accommodation

6b2a63cb-27dd-44f5-95af-eddac2fad3d5

This generation may be struggling to get into the housing market, but millennials are spending more on accommodation than any other generation, reveals new research.

Between 2014 and 2018, millennials spent an average of $234 per capita a year on accommodation, in comparison to generation X at $231 and cashed up baby boomers at $165.

The CBRE Hotels’ Australian check-in report says that millennials, born between 1981 and 1996, are a key market segment to hoteliers in the Australian context and should be on hoteliers’ radars.

“It was still surprising to see millennials as the highest accommodation spenders,” CBRE’s head of hotels research Chinmay Chitale said.

“Which is likely linked to the fact that many have yet to purchase a house, get married or have children – meaning that they can prioritise travel more readily.”

Post-millennials, or generation Z born from 1997 onwards, are emerging as a key market according to the report, with accommodation expenditure rising by 6.1 per cent annually over the past five years.


Hotels Challenged by Growing Private Rental Trend

The check-in report also found that post-millennials and millennials make up a higher share of total nights spent in private rentals such as Airbnb (at 56 per cent) relative to total nights spent in hotel accommodation (at 38 per cent).

The proliferation of home sharing platforms, such as Airbnb, have recorded strong year on year growth of private rental guest nights over the past five years.

CBRE Hotels’ national director Wayne Bunz said that private rental growth within the generation X market at 27.5 per cent annually posed a growing threat to traditional hotel brands.

“Given that this generation currently accounted for the highest share of hotel guest nights nationally at 32 per cent,” he said.

“The immersive aspect of private accommodation coupled with Airbnb’s relatively lower pricing point provides a point of difference to typical hotel brands, meaning that hoteliers need to differentiate themselves by delivering authentic experiences tied to local cuisines, people and events,” Bunz said.

“Simply providing a hotel which is designed to address a very broad market is no longer adequate.”

The report notes an opportunity for “new age” luxury brands entering the market.

“There is also an opportunity for dual-brand hotels to allow properties to target different market segments,” Bunz said.

HotelAustraliaSector
AUTHOR
Dinah Lewis Boucher
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Carparking Correlation: How Parking Fees Provide Office Sector Health Check

Taryn Paris
6 Min
Molti chief Ben Teague out front of 32 Mercer Road Aramadale (rendering)
Exclusive

Buy to the Sound of Cannons: Molti’s Counter-Cyclical Move to Melbourne

Leon Della Bosca
5 Min
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
View All >
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
ESR building ESR completes delisting
Industrial

ESR Reveals New Team After Hong Kong Delisting

Leon Della Bosca
Going private means plans to focus on logistics and data centres across the Asia-Pacific region can accelerate, ESR says…
LATEST
The construction site which will one day become Newcastle Tallest Tower by Urban Property Group
Residential

Urban Property Group Reveals Newcastle Tallest Tower Plan

Renee McKeown
3 Min
the four concept towers approved for sydney metro's parramatta precinct
Development

Rush of Approvals Sends Parramatta Skywards

Renee McKeown
2 Min
ESR building ESR completes delisting
Industrial

ESR Reveals New Team After Hong Kong Delisting

Leon Della Bosca
3 Min
Bunnings Clyde North
Markets

Bunnings Sold On as Charter Hall Doubles Down on Retail

Leon Della Bosca
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/millennials-the-big-spenders-on-australian-accommodation