Industry Heartbeat – March 2020 Qtr

Despite challenges from bushfires across Australia’s East and South-East coast during January and the commencement of COVID-19 related travel restrictions in February, caravan park tourist accommodation results remained relatively consistent compared with last year. However, there were some initial signs of the pain that was to be felt more broadly.

National caravan industry results for the March 2020 quarter follow a greater tourism industry trend with weaker occupancy and RevPar results recorded across all accommodation types. While rates remained consistent with 2019, the cause of the decline was driven by reduced demand for accommodation due to the inability to travel or difficulty accessing certain areas of the country.

Across all accommodation types and notwithstanding tough economic times, it appears as though the continuing increase in tariffs year-on-year and greater focus on yield management is starting to show in occupancy rates. We expect opportunities will arise for park businesses that are in tune with the pricing strategies of their immediate competitor accommodation businesses.