Why millennials flock to the north coast of NSW on vacation
The beautiful north coast of New South Wales is particularly popular with travellers in their 20s and 30s. If you’re considering owning or running a tourist accommodation business in the region we share what peaks the interest of millennials.
What does travel mean for millennials?
Millennials view travel as an essential part of finding themselves. They are looking for new, authentic experiences in attractive destinations which can be enjoyed in a variety of active and passive ways. Having plenty to see and do on vacation is how they rejuvenate themselves, away from the pressures of modern life.
The youngest millennials, aged 20 to 24, tend to seek faster-paced, hedonistic holidays which offer a wide variety of activities they are unable to experience at home. For 25- to 34-year-olds, holidays are more about relaxation and rejuvenation, allowing them to recover from work and take a break from the responsibilities of adult life.
Millennial travellers are not intimidated by long distances, but they want the convenience of a destination which is easy to access. Many choose to travel within Australia rather than to foreign destinations because they appreciate their home country and want to experience it to the full before exploring other places. Travelling interstate allows them to be more spontaneous as they can easily make travel plans only one or two weeks in advance, or sometimes just days before they travel.
Why does the north coast of NSW appeal to millennials?
The north coast of NSW is ideal for attracting millennial travellers because of the extensive range of activities and experiences it offers. Travellers in this age group are looking for unique experiences that are simple yet sophisticated, such as sampling local cuisine and wine, exploring the natural environment, or attending local events.
NSW’s north coast offers all the variety millennials are looking for, with a number of top travel destinations located in the area. The varied landscape is a great draw, with beaches, rainforest and coral reefs all found here, while there are also plenty of towns and villages where millennials can immerse themselves in everything the local culture has to offer. It is also an ideal destination for those who want to get active, with water sports such as surfing and kayaking on offer.
Running a holiday accommodation business in north coast NSW
Due to the popularity of NSW’s north coast with millennial travellers, there is plenty of demand for holiday accommodation. It is an attractive area for anyone wanting to start a business in this industry.
In the year up to March 2018, north coast NSW received nearly 5.3 million domestic overnight visitors, up 3.4 percent on the previous year. The majority of those visitors were aged between 15 and 39, showing how important millennials are to the area’s tourism industry.
The most popular type of paid accommodation was a caravan park or commercial camping ground, followed by a rented house, apartment, flat or unit.
Holiday accommodation businesses in all areas of the region have been reporting good yields for the last few years:
- Byron: Average room rate per night $228.50, average yield $170.50
- Tweed Heads: Average room rate per night $144, average yield $88.80
- Coffs Harbour: Average room rate per night $138.10, average yield $87.10
- Clarence Valley: Average room rate per night $139.60, average yield $71.80
This shows that starting a holiday accommodation business in north coast NSW can be highly profitable, particularly in autumn and spring when millennials are most likely to travel.
Remember, though, that price is extremely important to travellers in this age group. They are attracted by good deals. It’s advisable to advertise any deals you’re offering very prominently on social media and your website.
Additionally, your website should contain plenty of information about things to see and do in the area. Millennials typically pick a holiday destination and then research the area, so if you can offer them all the information they are looking for, via your site, your business will be more memorable.
If you are interested in either buying or selling an accommodation business in NSW and would like more information and advice, please contact us.