Despite recent COVID-19 lockdowns and outbreaks, key markets in Australia have noticedably lower occupancy numbers for the coming weeks.The most notable is that Sydney's occupancy on the books has fallen an average 13.8% compared to the data released from 21 June. The current week ending on 3 July will not see occupancy exceed 20%, which would represent a 50% decrease from previous weeks.The virus' delta strain has been present in the community since the second week in June. Lockdowns in Victoria, New South Wales, Queensland and Northern Territory have had a significant impact on occupancy, according to Matthew Burke, STRs regional manger for the Pacific region.Lockdowns were particularly detrimental for what was anticipated to be a rise of demand during strong leisure periods with winter school holidays.Australia was one of the top-performing countries in 2021, with a rising midweek demand and continued strength over weekends.Australia's revenue per available space (RevPAR) had reached 74% in 2019 through May.Burke stated that although the Gold Coast wasn't yet under lockdown when we processed the forward-looking data but because the Sydney Basin is a large source market, cancellations were higher than new bookings on the Gold Coast in the next two weeks.Three weeks straight have been spent in North Queensland with cancellations exceeding new bookings. This is peak season, when many people travel north to enjoy the warmer weather. The July occupancy is currently at 77%, but it isn't expected to be as high as it was a month ago due to the cancellations.All Australian markets have seen a slowdown in the average booking pace for the next month. This has had a significant impact on actualized occupancy. On a weekly basis Adelaide had an average 11.4% nightly pickup. This is the change in bookings between data collections. Pickup was 3.4% in the last update.Burke stated that although Adelaide is not currently under lockdown, it has had an impact on all markets due to the uncertainty and lockdowns elsewhere in the country.The data shows that cancellations up to this point are not common. Consumers may be holding on to bookings that are not cancelled within the next two weeks in order to ensure their travel is not affected. If restrictions are extended, cancellations will increase. Although the immediate effect is obvious, there is also a tail.www.str.com
