Survey Finds Australian Travelers Abandoning Peer-to-peer Stays And Returning To Big Hotels.

The research, commissioned by Europ Assistance, a leading global assistance company and the parent company of Australian travel insurance provider Insure&Go, was derived from the Europ Assistance 2024 Holiday Barometer.

This annual global survey, which includes 21,000 respondents from 21 countries, aims to uncover travel trends. Australia was included in the research for the second consecutive year, with a panel of 1,000 Australian respondents participating in the survey.

The study explored various accommodation options and analyzed the factors influencing choices: affordability, safety, familiarity, services and amenities, environmentally friendly options, and reliability.

The findings showed that nearly 60% of Australian respondents prefer hotels for their next trip, surpassing Europeans (50%) and North Americans (53%). Conversely, Australians are less inclined towards peer-to-peer (P2P) stays, with only 24% opting for these rentals, compared to 31% of Europeans and 27% of North Americans

Small hotels, with fewer than 20 rooms, are also less popular, with only 23% of Australians, 20% of North Americans, and 24% of Europeans planning to stay in such accommodations. Additionally, only 24% of Australians would choose free accommodation with friends or family, and just 10% would consider camping or road trips in a campervan.

The survey indicates that affordability and reliability are major factors driving Australian accommodation choices, with 42% citing these as key considerations. For Europeans, affordability is less critical at 32%, with reliability even lower at 28%. North Americans show a similar pattern, with 40% prioritizing affordability and 35% focusing on reliability

Safety is a higher priority for Australians, with 31% valuing safe or well-protected accommodations, compared to 19% of Europeans and 28% of North Americans.

The results come amid a growing backlash against P2P accommodation in Australia, fueled by price increases and concerns about its impact on the rental market. This has led to introducing a short-term stay levy, with Victoria being the first state to implement a 7.5% short-stay levy.

Jonathan Etkind, Chief Commercial Officer at Insure&Go, noted, “With affordability, reliability, and safety being top priorities for Australians, the trend towards larger hotels is likely to continue, especially with the new Short Stay Levy in place.” He added that the levy and additional costs associated with P2P rentals are prompting budget-conscious travellers to favour hotels that offer consistent services and amenities.

In contrast, Europeans, benefiting from a higher density of short-stay accommodation options and shorter travel distances between tourist sites, show a greater preference for vacation rentals. Jonathan highlighted that over a third of Europeans would choose an apartment or house rental, reflecting the availability and accessibility of such accommodations in Europe.