Australian holidaymakers pay through the roof for accommodation as staff shortages bite

Holidaymakers in Australia are being warned they will pay more for accomodation as prices soar amid high demand, while crippling staff shortages are forcing some hoteliers to cap visitor numbers.

In recent weeks massive demand on travel has seen long delays at domestic airports and previously neglected destinations, such as outback South Australia, increasing in popularity.

The CEO of Tourism Accommodation Australia, Michael Johnson, said the surge in accommodation bookings had come at a time when the industry was still struggling to find staff.

Johnson said the staff shortages were forcing many hotels to work at 70% to 80% capacity, with current staff already overburdened and stretched to the limit.

He said during the recent Vivid festival in Sydney, many accomodation providers had complained about their inability to capitalise on the increased demand and make back some of the crucial revenue lost over the past two years of lockdowns.

Johnson believes the situation will get better with time and said the industry expected a large influx of students and working holidaymakers to arrive in the country in the next few months.

He said the industry was also looking for new ways of attracting local staff and better utilising the existing labour force, but was calling on the government to help support these initiatives.

Some ideas that have been touted include giving employees who wish to supplement their current job with one or two hospitality shifts per week a tax break on their additional income.

Johnson said the industry was also working on better promoting hospitality roles to young Australians, particularly those who had left the industry following the lockdowns.

He wanted to see visa processing times for skilled workers reduced, saying this would have an immediate impact on the labour shortage.

Despite all the upward pressure on prices, Yip said holidaymakers should not give up on a midyear escape, but should keep a lookout for holiday deals and end-of-financial-year sales.

She recommended people looking for something a little easier on the pocket to avoid Queensland and the Snowy Mountains, which are experiencing the highest demand, with the latter recording average accomodation prices 17% higher than they were in the last winter season.

An option for the budget-conscious was camping and caravanning, which Yip said were experiencing a surge in popularity.

Internationally, the pricing situation is largely the same, with many European destinations hiking their prices to two-year highs as well, according to Trivago. Yip said south-east Asian destinations such as Thailand and Bali remained the most affordable options for those keen for a sea change.