Accommodation prices doubled almost overnight! Why?

I’m planning a week in Darwin and I’m appalled at a recent price hike in the cost of accommodation.

I had checked prices at a number of city hotels a few weeks back anbutd decided to wait a while before I booked. Silly me thought prices might come down a bit. I checked back in yesterday and the prices per night at most places had doubled. Doubled! Instead of an already exorbitant $450 a night, they were closer to $1000 a night.

Is there a shortage of accommodation in Darwin? Is this why thousands of people opt to camp nearby? Have you experienced this type of price surge when you’ve been booking accommodation?

8 comments

We booked a fabulous apartment through AirBnB in the Mantra Pandanus Hotel in Knuckey Street for $250pn just earlier this month so I don't know why prices would have shot up so dramatically - maybe it's all the southeners escaping the winter that have pushed the prices up. 

Many people use Darwin as a starting point for visiting Kakadu National Park. The best time to visit the Park is during the dry season (May to September.) That may account for the hotel price hike in Darwin and an influx of interstate visitors.

A few years ago we stayed at the Leprechaun Resort [now known as Darwin Resort] at Winnellie and gave it 5 stars!

 Just checking now their charge for 1 adult is $142 per night, which seems pretty reasonable.

Highly recommended!

It's the school holidays, always prime time.

I have the same concerns about Darwin at this time of year. Heading there on 7th July to join the Ghan. Cheapest suitable accommodation I could find was a suite at the Hilton ( no other rooms available) for $1150 a night, (fairly ordinary looking, shabby suite) as Casino booked out. I booked it immediately as prices were rising as I looked at them. At the other end of the Ghan trip a similar suite in Adelaide was only $350 a night.

Had a similar experience early May and 2 weeks ago when I tried to book accommodation in Brisbane. Cheapest room was $450/room per night. Nothing available at all on both occasions. These were for anywhere near Brisbane, not only CBD but also airport, and surrounding suburbs. Some people reckon due to the flood a lot of people have been put in hotel accommodation by their insurance (which I doubt) and also a lot of planes being cancelled, which I know is true. 

Normal supply/demand issue - when I worked on the road around the country you would see prices double for certain places, Perth was the worse and places like Karratha WA, Moranbah QLD. A regular country motel at the time would be $100, in Karratha they were $500.

After Covid everyone wants to travel, I saw this coming two years ago and decided no travel for me for a few years yet as it will take that time for the people who missed two years of travel to catch up.

Yes, it is supply and demand but also there are some profiteering trying to make up for lost income during lockdowns and travel restrictions.

Look at Queensland's recent proposal to add a 'tourist tax' to make up for the damage done by their Premier and previous Chief Health Officer. Not only did they demand (and get) more Federal financial assistance during lockdowns, but now they want to make all visitors pay again for their own poor management. Perhaps they could make the now redundant quarantine accommodation available to tourists! After all that was also built with Federal funds and now standing empty.

Its not only Darwin. I booked accommodation in Melbourne at our favourite hotel last week. It had almost doubled from a booking I made back in March. 

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