- Australian travellers are increasingly choosing destinations based solely on accommodation.
- Luxury hotels are redefining travel as an immersive, stay-led experience.
- Gen Z (54%) and Millennials (55%) are leading the shift toward accommodation-first travel.
We all travel. Whether we find ourselves hanging out the back of a packed Heritage train as it winds through lush terrain from Vietnam’s Hue to Da Nang, relaxing on a beach with an Aperol in hand and a dog-eared book in the other as the sun sets over Italy’s Gulf of Salerno, or heading back to our accommodation, walking shoes and torch by the door, alarm set for a sunrise walk up Bali’s Mount Batur, we all feel the alluring pull of adventure through other countries and continents almost too much to ignore.
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For many, this will never change. Luxury experiences through new destinations will always dictate the way we travel the world. Yet recent Skyscanner data for 2026 suggests it’s no longer the only influence.
For 45% of Australians, choosing where to travel each year is now driven entirely by where they plan to stay. More than ever, luxury hotels have become the main event for Australian travellers.
What’s even more interesting is the consistency of responses across each of the age groups. Of course, Gen Z travellers, influenced by luxury travel content, first-hand accounts, walkthroughs and reviews from their favourite creators, have changed their perspective on travel entirely, with 54% of younger travellers claiming that where they stay continues to play a decisive role in where they go.
Similarly, 55% of Millennials are travelling with accommodation in mind; I’d assume after decades of travelling through the night with a host of Scandi backpackers on a 6-week stint across the tomato region of Europe.
With more money in their pockets and fewer annual leave days on the clock, travelling has become slightly more conditioned. And at the heart of this movement is the rise of the destination hotel.
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Across the world, properties are designed, not merely to complement a location, but to define the entire experience.
These are hotels travellers build itineraries around, often spending days, if not entire trips, within their walls, enjoying the abundance of comforts designed to never leave its occupants wanting.
Mondrian, Gold Coast’s new luxury hotel, immediately comes to mind. Of course, Australia’s Gold Coast boasts its own coastal attractions just a short hop over from Sydney airport, but with the opening of one of Australia’s most sought-after destinations, I’m tempted to bump it up the list of my options for a long weekend destination.
So too, Park Hotel Villa Grazioli, located in the small town of Frascati, which is just a short commute from Rome. I remember when my family first chanced upon this luxury hotel when I was much younger, less through careful planning and more by fortunate discovery.
Set within a 16th-century villa on the edge of the Castelli Romani hills, the property felt worlds away from the crowds of the city below, yet close enough to still feel connected to Rome’s cultural heartbeat. And it quickly became a destination that we would return to whenever we’d travel to the Italian capital.
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For many travellers, particularly those seeking luxury, the appeal lies in the inherent value of the holiday beyond simply how much everything will likely cost.
A standout hotel – a truly 5-star stay – can deliver a range of world-class dining options, a luxury wellness centre, that’s exclusively yours and just a couple of floors below, a reflection of the country or region’s culture, intertwined into the experience through the architecture, hospitality, or activities on offer, and a sense of escapism from the 9 to 5, all without the need to constantly pack, move or plan the next leg.
The result is a slower, more intentional way of travelling, where time is spent absorbing rather than ticking off a TripAdvisor list. From sculptural urban hotels overlooking icons like Barcelona’s Sagrada FamÃlia to remote barrel cabins framed by palm trees and private hot tubs, travellers are seeking places that feel story-worthy in and of themselves.
For travellers, luxury hotels are no longer just the backdrop to a holiday. Instead, these destination properties are finding a new wave of interest as they confidently step into the spotlight. In many cases, the destination may still matter, but Australians are starting to find that the hotel seals the deal.
