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Accommodation

The availability of quality, value for money accommodation is a key component in a visitor’s destination choice and a top three consideration in short-break travel. Read more

The availability of quality, value for money accommodation is a key component in a visitor’s destination choice and a top three consideration in short-break travel. Key learnings for tourist accommodation development:

Business Operation Tip

Ongoing investment in accommodation is required to refresh and refurbish facilities to meet changing visitor expectations and to ensure visitor satisfaction.

  • A strong business case is required in order to secure investment or funding for accommodation development;
  • A business case should be based on extensive market demand research, pre-feasibility studies of potential development opportunities, assessment of expected return on investment and input from a wide range of public and private sector stakeholders;
  • Understanding historic and forecast supply and demand trends is required looking at occupancy rates, average room rates and revenue per room night to determine the project need.
  • Clearly identifying the target market, their preferences and motivations is important not only for planning and developing accommodation but also for developing marketing and promotion strategies as demonstrated by Melbourne’s Jasper Hotel who was able to identify a market need and reposition their hotel’s image to target a new market. Visitors preferences for accommodation are often influenced by age, gender, family structure, income and reasons for travelling;
  • Accommodation development should be aligned with the overall brand and image of a destination to ensure it is aligned with both consumer and host community values.

One of the landmark resources developed from Sustainable Tourism Cooperative Research Centre research is the Motel Makeover Guide. This tool provides a simple guide to assist accommodation operators with the refurbishment and refreshment of accommodation facilities.

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