STR data shows regional markets are outperforming city markets
Key points:
Regional markets are experiencing a boom according to STR
Regional hotels only account for 46% of all hotel rooms
Generated over 63% of all hotel room revenue for June
Regional markets are experiencing a boom according to STR, Australians remaining close to home and avoiding air travel.
Regional hotels only account for 46% of all hotel rooms and tend to charge lower rates, however during June, these hotels generated over 63% of all hotel room revenue.
"We are operating in a two-speed economy from an accommodation perspective," said STR's regional Pacific manager Matthew Burke.
"The regional areas are growing faster and seeing the rebound much faster than the capital city markets."
Mr Burke said another key reason why regional hotels were outperforming those in the city was a lack of air travel, which remains "very subdued".
According to global travel data provider OAG, Australia's domestic airlines are operating at just over 20% of normal capacity compared with the same time last year.
"Drive [holidays] will continue to be the mode of transport until confidence and capacity re-emerges in the sky," Mr Burke said.