Weaknesses
Many European economies—many of which are among Australia’s highest in terms of average trip expenditure.
Below trend Australian economic growth is likely to last longer and be more pronounced than expected. This will likely drive up unemployment, limit discretionary expenditure, and further weaken consumer and business confidence.
Domestic business travel growth is expected to remain weak for the next two to three quarters.
Despite hotel occupancy rates remaining strong some segments in the accommodation sector are cutting average daily rates largely due to a slowing business segment.