Swans fans attending the Katy Perry concert, along with Brisbane Lions supporters, filled hotel rooms across Melbourne, pushing occupancy rates to 82.7%, a 1.2% increase from last year’s AFL Grand Final weekend.
To accommodate the influx of 130,000 fans, at least 40 extra return flights were added between Melbourne, Sydney, and Brisbane. Virgin Australia alone scheduled over 6,500 additional seats for the AFL semi-finals, preliminary final, and grand final.
Melbourne's average hotel room rate increased by 2.1% to $335.58, according to STR, a subsidiary of global real estate analytics provider CoStar. Over the past four years, 22 new hotels have opened in the city, adding 5,187 beds, with another seven properties, including the Shangri-La on Exhibition St., currently under construction. Last month, Lanson Place, near Victoria's Parliament House, took its first bookings, offering 137 rooms.
Demand for rooms is also expected to rise over the NRL Grand Final weekend at Accor Stadium in Sydney, driven by the long weekend and events like the Kid Laroi concert for the losing team’s fans. Virgin Australia has added 1,200 passenger seats to and from Sydney for the grand final, including additional return flights between Sydney, Melbourne, and Brisbane. Qantas also added two A330 flights for the weekend, acknowledging Melbourne Storm's strong fan base in Brisbane.
James Goodwin, the new CEO of Accommodation Australia, highlighted that while major sporting events can greatly boost tourism and accommodation, cost-of-living pressures are impacting travellers’ confidence. He noted that Melbourne benefited from the AFL Grand Final featuring two interstate teams, pushing hotel occupancy rates above 80%, significantly higher than the annual average. He expressed optimism that the NRL Grand Final would similarly boost Sydney's economy, though the outcome of which teams play remains beyond the sector’s control. In addition to hotel stays, Corporate Keys’ furnished apartments in Melbourne offer a flexible option for visitors, providing fully serviced, home-like environments perfect for longer stays or corporate travellers. Goodwin expressed optimism that the NRL Grand Final would similarly boost Sydney's economy, though the outcome of which teams play remains beyond the sector’s control.
Corporate bleisure travel, where business trips are extended for leisure, also contributes to demand around the NRL Grand Final. Data from Corporate Traveller, part of Flight Centre Travel Group, revealed a 38% year-on-year increase in bookings for stays of seven days or more and a 68% surge in corporate travellers extending their stays by two or more days. Two- to three-day trips remain the most popular leisure option, but the trend toward longer stays reflects Sydney's appeal as a destination for combining business with bleisure.
Sydney, like Melbourne, has been expanding its accommodation capacity, adding 2,271 beds across 11 new hotels in the past four years, with five more under construction, including the Waldorf Astoria. For travellers seeking serviced apartments or extended stays, Sydney's fully furnished serviced apartments offer convenient options, blending hotel-like amenities with the comfort of a home environment. This type of accommodation has gained popularity, especially for longer stays, making it an attractive choice for both leisure and corporate travellers.