Michel von Dusterlho (26), a German backpacker, said that there were no hostels available.
Von Dusterlho is following in the footsteps of many young travelers who have traveled to Australia for years in search of golden beaches, sunnier climates, and casual work opportunities.
The WHM scheme was Australia’s largest tourism market in 2019 by spending after China.
As the tourism industry recovers from COVID-19, backpackers will find that travel and accommodations are significantly more expensive.
Paul McGrath, chief executive of YHA Australia, says that the hostel market has seen a decline in capacity. In some places, more than half of all properties are gone. YHA Australia’s chief executive, Paul McGrath, says that 19 of their properties in Australia have been permanently closed. Tourism Adventure Group, the owner of Nomads Hostels, has completed or sold 6 of its 16 Australian hostels during the pandemic. Prices have risen by nearly 50%.
Backpackers report increased housing stress and plans that have been rethought. Hannah Storm, a Dutch traveler, says that it’s nearly impossible to book a place to stay if you don’t do so in advance. “It makes me very anxious,” she said. She secures two weeks ahead to save money and get better accommodation. “I thought about taking a roadtrip, but it isn’t feasible at this time with the cost of fuel and accommodation.”
Beth Stone discovered the dangers of booking at the last minute. “I paid PS100 ($180) for one night at a dorm in Surfers Paradise with 100 other people! The second place I went was after I arrived, and I did not book ahead. It was either that or a place with no reviews.
India Taylor is a receptionist working at a Byron Bay Hostel in exchange for free accommodation. She says that her job consists of turning people away because the hostel is full. She says that the conditions in other hostels she has stayed at are terrible. “But owners get away with this because they know that they will get bookings regardless.” “There’s no incentive for improvement.”
K’Dee Melfi began a world trip in January and spent the last month in Australia. She knew that it would be more costly than other countries, but she was still surprised. She says that even places with poor online reviews have low availability due to the desperate nature of everyone. It was cheaper to share a serviced flat [in Melbourne] with three other people rather than stay in a dorm of eight beds.
The increased price of travel has not stopped tourists from visiting Australia. Accommodation and airlines report a high demand during the summer and Christmas holidays. Accommodation searches on the travel website Kayak have increased by as much as 127% between September and October 2022 compared to the same period in 2019. Australian domestic flight fares are at their highest level since 2004.
YHA increases their prices, as do many other hostels, when demand rises. Prices may not have reached their peak yet. McGrath predicts an increase in arrivals over the next few months as international travel and airfares are stabilized.
Tens of thousands of travelers have received WHM visas, but they haven’t yet arrived in Australia. McGrath believes they are waiting to find cheaper flights.
YHA is concentrating on expanding its appeal and attracting clients who are not put off by the higher prices. Co-working spaces are being trialed in hostels. McGrath says that the traditional backpacker image is outdated due to the rise of digital nomads.
“I joke to my guys that backpackers arrive now with Prada suitcases… the idea of the working vacationer is changing and we have changed to reflect that.”
Most people don’t regret their trip to Australia despite the cost. Von Dusterlho said: “It may be expensive, but I am still having a good time. This beats being at home with Covid.”
