Three trends in Australia’s hospitality sector, and how businesses can win

Australian consumers are still feeling the squeeze, cutting back on discretionary spending like dining and entertainment. While lower interest rates may offer some relief, value for money will remain a priority through to the end of 2025, and probably beyond.

That said, Australians haven’t stopped exploring their own backyard. 86% of hotel bookings in 2024 were made by locals, making Australia a global leader in domestic travel. For hospitality brands, this presents an opportunity to deepen loyalty rather than compete on price.

How payments can help: Payment-linked loyalty allows hotels and restaurants to instantly recognise returning guests and reward them automatically at checkout, no matter where they spend on the property. This means hotels can turn every guest interaction across rooms, dining, tours, and other experiences into an opportunity to build loyalty. There is clear demand for this. 43% of guests prefer to book with hotels and airlines that offer strong loyalty programs, and 30% expect travel companies to invest more in personalised promotions and discounts. Payment-linked loyalty and unified guest profiles make it possible to offer personalised experiences, without increasing costs.

Australia’s post-Covid tourism recovery continues to build momentum. In June 2025, short-term visitor arrivals reached over 624,000 – up more than 6% from the previous year – and the nation is on track to welcome 11 million visitors annually by 2027. Add to that the investment wave ahead of the 2032 Brisbane Olympic and Paralympic Games, and the outlook for inbound tourism is bright.

To capture this demand, hospitality businesses should focus on removing friction from the guest journey by:

• Ensuring booking platforms are mobile-friendly, as 66% of millennial travellers book via smartphone.

• Offering real-time availability and instant confirmation, which are now expected by international guests.

• Supporting local payment methods (LPMs) to deliver a seamless checkout experience.

One further note: As China remains one of Australia’s largest sources of tourists, it is important to remember that WeChat and Xiaohongshu are the go-to platforms for trip planning and recommendations, creating opportunities for brands to connect via WeChat mini-programs, localised content, and influencer partnerships. 

How payments can help: As visitor profiles diversify, payment preferences will too, from digital wallets and BNPL for younger travellers to traditional methods for older guests, and payment options like Alipay, WeChat Pay, and UnionPay for Chinese travellers. Having a global payments partner that supports multi-currency pricing and a wide range of local and digital options helps ensure every guest feels at home.

AI is rapidly changing how people plan and book trips. 73% of Australian travellers want AI to help them discover unique and personalised travel experiences, and 64% trust the accuracy of the information they receive.

Hospitality businesses are using AI too. Chatbots, virtual assistants, and smart booking tools are streamlining operations and improving service. But while younger guests are quick to adopt AI, older generations remain cautious, so balancing innovation with trust is key.

How payments can help: AI also plays a powerful role behind the scenes. With Adyen, hospitality businesses can use AI to detect fraud, recognise returning guests, route payments efficiently, and optimise conversion rates, all while delivering a smoother, more personalised experience.

Regardless of how industry challenges and opportunities evolve, the guest experience will always sit at the heart of hospitality.

By investing in the right technology and partners, you’ll be able to simplify operations, deliver more value, and provide exceptional experiences that bring guests back time and time again. See how leading global hospitality businesses are doing this in the Hospitality and Travel Report 2025.