WYSE Travel Confederation | wysetc.org
Insights from the Accommodation Sector Panel: Growth in Asia-Pacific amid challenges in western markets
WYSE News | January 20, 2025

The WYSE Travel Confederation Accommodation Panel gets together every few weeks to catch up on what’s going on in the accommodation sector; the latest trends, what’s shaking up the industry, and the hurdles that need to be overcome.

Below is a look at some of the recent topics that have arisen from the January 2025 Accommodation Sector Panel meeting.

If you would like to contribute to any of these topics, our Membership team would be delighted to hear from you.

Challenges in the West, but booming demand in Asia-Pacific

Diogo Vaz Ferreira (Head of Commercial at Clink Hostels) reported that the demand for accommodation in Australia, New Zealand, and Southeast Asia remains robust, with these areas continuing to be dominant in travel interest. But there were still challenges in Western markets, particularly in the US and Europe, where 2024 proved difficult, especially in Western Europe’s major cities such as London, Amsterdam, and Dublin.

Unfortunately, the prediction is that there are no significant improvements expected in 2025, with businesses continuing to express concerns over the economic outlook. Global economic uncertainty, including geopolitical issues like Trump’s election in the US, Middle Eastern conflicts, and economic instability, is contributing to a pessimistic atmosphere in these regions.

Tom Cooney (CEO of Tourism Adventure Group) shared that Australia is experiencing 100% occupancy, with higher rates than the previous summer. New Zealand is also seeing strong post-COVID occupancy, driven by travellers finishing their working holiday visas in Australia. Southeast Asia, in particular, is thriving, with backpackers facing difficulty in finding available accommodation due to the high demand.

Japan, on the other hand, is experiencing record levels of tourism, with the government urging Australians to reduce visits due to overcrowding.

Read more on this topic here.

Tom also noted that the Asia-Pacific region has not faced significant staffing or middle management challenges, a contrast to other regions.

Furthermore, the pace of new bed introductions to the market has slowed, allowing existing properties to focus on managing their inventory and clientele more effectively. This slower pace also creates opportunities for redevelopment and reinvestment during the summer.

Maximising university accommodation and shifting from conferences to summer schools

Kevin McCormick (Head of Commercial Operations at the University of Bath) noted that post-COVID, conferences have become less prolific, with many universities returning to them after a period of absence. In response to this, there has been some universities in discussions about alternative options, such as summer schools, which can be more profitable and impactful than traditional conferences, emphasising their value in better utilising university accommodations. Hosting a conference often doesn’t fill the available beds in university accommodations, but a summer school does.

Conclusion

Western markets are facing challenges from economic and geopolitical uncertainties, impacting accommodation demand. In contrast, the Asia-Pacific region is showing resilience, driven by strong traveller interest and innovative occupancy strategies.

Also, there is potential for universities to adopt summer schools to optimise facility use post-COVID. These trends underscore the need for strategic adaptability and diversification to address evolving market conditions and ensure long-term sustainability.